GlobeNewswire Inc | Nov 16, 2020 05:15PM EST

November 16, 2020

GUANGZHOU, China, Nov. 17, 2020 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (JOYY or the Company, formerly known as YY Inc.), a global video-based social media platform, today announced its unaudited financial results for the third quarter of 2020.

Third Quarter 2020 Financial Highlights1

-- Net revenues increased by 36.1% to RMB6,286.4 million (US$925.9 million) from RMB4,617.3 million in the corresponding period of 2019. -- Net income from continuing operations attributable to controlling interest of JOYY Inc.2 was RMB2,303.2 million (US$339.2 million), compared to RMB61.8 million in the corresponding period of 2019, primarily due to the impact of gain from partial disposal of investments in Huya. -- Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY Inc.3 increased by 64.0% to RMB809.4 million (US$119.2 million) from RMB493.4 million in the corresponding period of 2019, primarily due to the decrease in the operation loss of Bigo Inc (Bigo).

Third Quarter 2020 Operational Highlights

-- Global average mobile MAUs4 decreased by 4.0% to 390.1 million from 406.3 million in the corresponding period of 2019, mainly due to the impact of Indian governments measures to block certain Chinese-owned apps in its local market, which included Bigo Live, Likee and Hago. -- Average mobile MAUs of Likee increased by 3.8% to 104.0 million from 100.2 million in the corresponding period of 2019. -- Average mobile MAUs of global live streaming services decreased by 2.3% to 92.0 million from 94.1 million in the corresponding period of 2019, among that (i) 41.3 million were from YY, which increased by 3.4% year over year; and (ii) 50.7 million were from outside of China, which decreased by 6.5% year over year, including 28.0 million from Bigo Live, which increased by 27.7% year over year, and 22.7 million from HAGO, which decreased by 29.7% year over year primarily due to the impact of Indian governments measures to block such app in its local market. -- Total number of paying users5 of YY decreased by 4.7% to 4.1 million from 4.3 million in the corresponding period of 2019, mainly due to COVID-19 impacts.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, Despite uncertainties from macro perspective, we remained focused on executing our dual-engine growth strategy in the third quarter of 2020. Through a combination of globalized market reach and localized operations management, we continued to achieve solid growth in our financial results. Despite the negative impact from Indian governments measures to block certain Chinese-owned apps in its local market and other geopolitical risks, our global MAU remained relatively stable, thanks to rapid expansion of our business in other regions. During the quarter, Bigo Live maintained its robust growth trajectory and further diversified its geographic coverage, accomplishing 270% and 231% revenue growth in Europe and East Pacific regions, respectively. Likee continued to gain momentum through a measured approach of balancing its user expansion and user retention, with continuous improvement in user engagement level by introducing multiple functions of its video production tools, dynamic community and thematic functionalities, as reflected by increase in content creator engagement.

Mr. Li continued, We believe Baidus strategic acquisition of YY Live is a true win-win for both parties, as it will accelerate YY Lives business growth and unlock more value across the domestic entertainment live streaming sector. Going forward, we will continue to expand our live streaming and short-form video content ecosystem in key overseas markets around the world, and explore new business lines, aiming to further enter into the industrial AI internet sector.

Mr. Bing Jin, Chief Financial Officer of JOYY, further commented, Despite the impact of geopolitical headwinds, we grew our total revenues by 36.1% year over year to RMB6,286.4 million during the third quarter of 2020 and exceeded the high end of our previous guidance. More specifically, revenues from Bigo grew by 120.8% year over year to RMB3,394.8 million, mostly driven by the uptick in its live streaming revenues. It is also the first quarter for Bigo to achieve a positive non-GAAP operating margin. As we remain in an abundant cash position after recent transaction with Baidu, we will continue to invest in business development efforts to further expand our global market reach, and cultivate new business to enhance our service offerings. We will also actively explore other ways to return value to our shareholders to maximize shareholder value.

Third Quarter 2020 Financial Results

NET REVENUES Net revenues increased by 36.1% to RMB6,286.4 million (US$925.9 million) in the third quarter of 2020 from RMB4,617.3 million in the corresponding period of 2019, primarily driven by continued growthinuser base and expansion of global footprint in Bigo .

Live streaming revenues increased by 40.1% to RMB6,049.1 million (US$890.9 million) in the third quarter of 2020 from RMB4,317.8 million in the corresponding period of 2019, primarily attributable to the continued live streaming revenues growth in Bigo segment.

Other revenues decreased by 20.8% to RMB237.3 million (US$34.9 million) in the third quarter of 2020 from RMB299.4 million in the corresponding period of 2019, primarily due to the decrease in other revenues in YY segment.

COST OF REVENUES AND GROSS PROFIT Cost of revenues increased by 38.8% to RMB3,961.7 million (US$583.5 million) in the third quarter of 2020 from RMB2,854.5 million in the corresponding period of 2019. Revenue-sharing fees and content costs increased to RMB2,840.3 million (US$418.3 million) in the third quarter of 2020 from RMB1,951.0 million in the corresponding period of 2019 as a result of the increase in live streaming revenues of the Company. Bandwidth costs decreased to RMB236.9 million (US$34.9 million) in the third quarter of 2020 from RMB286.3 million in the corresponding period of 2019, primarily relatedto the termination ofservice and access tousersinIndia after its measures to block certain Chinese-owned apps in late June.

Gross profit increased by 31.9% to RMB2,324.7 million (US$342.4 million) in the third quarter of 2020 from RMB1,762.7 million in the corresponding period of 2019. Gross margin was 37.0% in the third quarter of 2020, compared to 38.2% in the corresponding period of 2019. The gross margin contraction was primarily caused by the fact that Bigo segment had lower gross margin but contributed significantly greater portions of net revenues in the third quarter of 2020, compared to the corresponding period of 2019.

OPERATING INCOMEOperating expenses were RMB1,999.9 million (US$294.6 million) in the third quarter of 2020, compared to RMB1,807.9 million in the corresponding period of 2019. Among the operating expenses, sales and marketing expenses increased to RMB1,083.0 million (US$159.5 million) in the third quarter of 2020 from RMB957.3 million in the corresponding period of 2019, primarily due to the Companys increased efforts in sales and marketing activities in overseas markets. Research and development expenses increased to RMB636.0 million (US$93.7 million) in the third quarter of 2020 from RMB538.1 million in the corresponding period of 2019, mostly due to the increasing headcount and investments in talent recruitment as part of the Companys efforts to enhance its research and development capabilities. General and administrative expenses were RMB280.8 million (US$41.4 million) in the third quarter of 2020, compared to RMB312.5 million in the corresponding period of 2019. The decrease of general and administrative expenses was mainly attributable to a decrease in provision for loss allowances of receivables.

Operating income was RMB466.6 million (US$68.7 million) in the third quarter of 2020, compared to RMB96.4 million in the corresponding period of 2019. Operating margin was 7.4% in the third quarter of 2020, compared to 2.1% in the corresponding period of 2019, primarily due to the decrease in operation loss of Bigo segment.

Non-GAAP operating income6 increased by 77.8% to RMB825.8 million (US$121.6 million) in the third quarter of 2020 from RMB464.4 million in the corresponding period of 2019. Non-GAAP operating margin7 was 13.1% in the third quarter of 2020, compared to 10.1% in the corresponding period of 2019.

NET INCOMENet income from continuing operations attributable to controlling interest of JOYY Inc. was RMB2,303.2 million (US$339.2 million) in the third quarter of 2020, compared to RMB61.8 million in the corresponding period of 2019. Net margin was 36.6% in the third quarter of 2020, compared to 1.3% in the corresponding period of 2019, mainly due to the gain from partial disposal of investments in Huya.

Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY Inc. increase by 64.0% to RMB809.4 million (US$119.2 million) in the third quarter of 2020 from RMB493.4 million in the corresponding period of 2019. Non-GAAP net margin8 increased to 12.9% in the third quarter of 2020 from 10.7% in the corresponding period of 2019.

NET INCOME PER ADSDiluted net income from continuing operations per ADS9 was RMB25.92 (US$3.82) in the third quarter of 2020, compared to RMB 0.56 in the corresponding period of 2019.

Non-GAAP diluted net income from continuing operations per ADS10 increased by 58.8% to RMB8.89 (US$1.31) in the third quarter of 2020 from RMB5.60 in the corresponding period of 2019.

BALANCE SHEET AND CASH FLOWSAs of September 30, 2020, the Company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of RMB24,469.7 million (US$3,604.0 million). For the third quarter of 2020, net cash from operating activities was RMB1,029.9 million (US$151.7 million).

SHARES OUTSTANDING As of September 30, 2020, the Company had a total of 1,619.7 million common shares, or the equivalent of 81.0 million ADSs, outstanding.

Quarterly Dividend On August 11, 2020, the Company's board of directors approved a quarterly dividend policy for the next three years commencing in the third quarter of 2020. Under the policy, quarterly dividends will be set at approximately US$25.0 million in each fiscal quarter. The board of directors has accordingly declared a dividend of US$0.31 per ADS, or US$0.0155 per common share, for the third quarter of 2020, which is expected to be paid on December 23, 2020 to shareholders of record as of the close of business on December 11, 2020. The ex-dividend date will be December 10, 2020. Under the policy, the board of directors of the Company reserves the discretion relating to the determination to make dividend distributions and the amount of such distributions in any particular quarter, depending on the Companys operations and earnings, cash flow, financial condition and other relevant factors.

Recent DevelopmentsOnNovember 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (Baidu). Pursuant to the agreements, Baidu will acquire JOYYs domestic video-based entertainment live streaming business (YY Live), which includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. The closing of the transaction is subject to certain conditions and is currently expected to occur in the first half of 2021.

Conference Call InformationThe Company will hold a conference call on 9:00 PM U.S. Eastern Time on Monday, November 16, 2020 (10:00 AM Beijing/Hong Kong Time on Tuesday, November 17, 2020). Details for the conference call are as follows:

Event Title: JOYYs Third Quarter 2020 Earnings Conference CallConference ID: #8576720

All participants must use the link provided below to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique registrant ID by email.PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/8576720

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.yy.com/.

The replay will be accessible through November 24, 2020 by dialing the following numbers:

United States: +1-646-254-3697International: +61-2-8199-0299Conference ID: #8576720

Exchange RateThis press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.

About JOYY Inc.JOYY Inc. is a global social media platform. The Companys highly engaged users contribute to a vibrant social community by creating, sharing, and enjoying a vast range of entertainment content and activities. JOYY enables users to interact with each other in real time through online live media and offers users a uniquely engaging and immersive entertainment experience. JOYY owns Bigo, a fast-growing global tech company headquartered in Singapore. Bigo owns several popular video based social platforms including Bigo Live, a leading global live streaming platform outside China; Likee, a leading global short-form video social platform; and video communication service and others. JOYY has created an online community for global video and live streaming users. JOYY Inc. was listed on the NASDAQ in November 2012.

Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as JOYYs strategic and operational plans, contain forward-looking statements. JOYY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (SEC), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about JOYYs beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JOYYs goals and strategies; JOYYs future business development, results of operations and financial condition; the expected growth of the online communication social platform market in China; the expectation regarding the rate at which to gain active users, especially paying users; JOYYs ability to monetize the user base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to JOYYs business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in JOYYs filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JOYY does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Use of Non-GAAP Financial MeasuresThe unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). JOYY uses non-GAAP operating income, non-GAAP operating margin, non-GAAP net income from continuing operations attributable to controlling interest of JOYY Inc., non-GAAP net margin attributable to controlling interest of JOYY Inc., non-GAAP net income from continuing operations attributable to common shareholders of JOYY Inc., and basic and diluted non-GAAP net income per ADS, which are non-GAAP financial measures. Non-GAAP operating income is operating income excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain on disposal of subsidiaries and business. Non-GAAP operating margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income from continuing operations is net income from continuing operations excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds amortization to face value, and income tax effects of above non-GAAP reconciling items. Non-GAAP net income from continuing operations attributable to controlling interest of JOYY Inc. is net income from continuing operations attributable to controlling interest of JOYY Inc. excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds amortization to face value, income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. Non-GAAP net margin is non-GAAP net income from continuing operations attributable to controlling interest of JOYY Inc. as a percentage of net revenues. Non-GAAP net income from continuing operations attributable to common shareholders of JOYY Inc. is net income from continuing operations attributable to common shareholders of JOYY Inc. excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries preferred shareholders and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. After the non-GAAP reconciliation, non-GAAP net income from continuing operations attributable to controlling interests of JOYY Inc. is equal to the non-GAAP net income from continuing operations attributable to common shareholders of JOYY Inc. Basic and diluted non-GAAP net income from continuing operations per ADS is non-GAAP net income from continuing operations attributable to common shareholders of JOYY Inc. divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of (i) share-based compensation expenses and amortization of intangible assets from business acquisitions, fair value change on derivatives, interest expenses related to the convertible bonds amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, and accretion, cumulative dividend and deemed dividend to subsidiaries preferred shareholders, which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net (loss) income from continuing operations attributable to non-controlling interest shareholders, which are affected by above non-GAAP reconciling items. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Companys net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned JOYY Inc. Reconciliation of GAAP and Non-GAAP Results near the end of this release.

Investor Relations ContactJOYY Inc.Jane Xie/Maggie YanTel: +86 (20) 8212-0000Email: IR@YY.com

ICR, Inc. Jack WangTel: +1 (646) 915-1611Email: IR@YY.com

1 Starting from the second quarter of 2020, the Company deconsolidated HUYA Inc. (Huya) and Huyas historical financial results are and will be reflected in the Companys consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information of the Company disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated. After the deconsolidation of Huya, the Company accounts for its investment in Huya as an equity method investment and applies the equity method accounting one quarter in arrears. Share of income or loss from the investment in Huya will be included in net income or loss from continuing operations.

2 Net income from continuing operations attributable to controlling interest of JOYY Inc., is net income from continuing operations less net (loss) income from continuing operations attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders.

3 Non-GAAP net income from continuing operations attributable to controlling interest of JOYY Inc. is a non-GAAP financial measure, which is defined as net income from continuing operations attributable to controlling interest of JOYY Inc. excluding share-based compensation expenses, impairment of goodwill and investment, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments which refer to those similar non-GAAP reconciling items of the Company, fair value change on derivatives, interest expenses related to the convertible bonds amortization to face value, income tax effects on non-GAAP adjustments and non-GAAP adjustments for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to reversal of RMB1,493.8 million (US$220.0 million) and RMB431.7 million in the third quarter of 2020 and 2019, respectively. Please refer to the section titled Reconciliation of GAAP and Non-GAAP Results for more details.

4 Refers to mobile average monthly active users. Average mobile MAU for any period is calculated by dividing (i) the sum of the Companys mobile active users for each month of such period, by (ii) the number of months in such period.

5 Refers to a registered user that has purchased virtual items on YYs platforms at least once during the period presented.

6 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain on disposal of subsidiaries and business. Please refer to the section titled Reconciliation of GAAP and Non-GAAP Results for details.

7 Non-GAAP operating margin is a non-GAAP financial measure, which is defined as non-GAAP operating income as a percentage of net revenues. Please refer to the section titled Reconciliation of GAAP and Non-GAAP Results for details.

8 Non-GAAP net margin is non-GAAP net income from continuing operations attributable to controlling interest of JOYY Inc. as a percentage of net revenues.

9 ADS is American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income per ADS is net income attributable to common shareholders of JOYY Inc. divided by weighted average number of diluted ADS.

10 Non-GAAP diluted net income from continuing operations per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income from continuing operations attributable to common shareholders of JOYY Inc. divided by weighted average number of ADS used in the calculation of diluted net income per ADS. Please refer to the section titled Reconciliation of GAAP and Non-GAAP Results for details.

JOYY INC.UNAUDITED CONDENSEDCONSOLIDATED BALANCE SHEETS(All amounts in thousands, except share, ADS and per ADS data)

December September September 31, 30, 30, 2019 2020 2020 RMB RMB US$Assets Current assets Cash and cash equivalents 2,780,345 12,466,359 1,836,096Restricted cash and cash equivalents 3,500 3,500 515Short-term deposits 10,027,440 8,190,367 1,206,311Restricted short-term deposits 653,034 504,312 74,277Short-term investments 3,402,658 3,305,128 486,793Accounts receivable, net 675,196 1,049,931 154,638Amounts due from related parties 1,709 2,279 336Financing receivables, net 105,344 1,469 216Prepayments and other current assets 569,730 617,810 90,994Assets held for sale 10,581,013 - - Total current assets 28,799,969 26,141,155 3,850,176 Non-current assets Deferred tax assets 81,819 77,429 11,404Investments^(1) 1,983,483 8,375,126 1,233,523Property and equipment, net 2,159,674 2,511,631 369,923Land use rights, net 1,736,544 1,700,472 250,452Intangible assets, net 3,134,778 2,544,297 374,734Right-of-use assets, net 172,783 143,381 21,118Goodwill 12,947,192 12,639,182 1,861,550Financing receivables, net 129,380 128,627 18,945Other non-current assets 289,131 157,274 23,164Assets held for sale 774,730 - - Total non-current assets 23,409,514 28,277,419 4,164,813 Total assets 52,209,483 54,418,574 8,014,989 Liabilities, mezzanine equity and shareholders? equityCurrent liabilities Accounts payable 120,826 108,245 15,943Deferred revenue 548,303 579,704 85,381Advances from customers 99,130 69,314 10,209Income taxes payable 425,572 452,729 66,680Accrued liabilities and other current 3,150,303 3,610,862 531,821liabilitiesAmounts due to related parties 205,921 30,672 4,517Lease liabilities due within one year 83,686 94,581 13,930Short-term loans 557,203 1,004,125 147,892Liabilities held for sale 2,446,677 - - Total current liabilities 7,637,621 5,950,232 876,373 Non-current liabilities Convertible bonds 5,008,571 5,197,691 765,537Lease liabilities 92,669 53,849 7,931Deferred revenue 75,628 68,238 10,050Deferred tax liabilities 264,639 302,708 44,584Other non-current liabilities 11,495 - -Liabilities held for sale 235,023 - - Total non-current liabilities 5,688,025 5,622,486 828,102 Total liabilities 13,325,646 11,572,718 1,704,475

JOYY INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)(All amounts in thousands, except share, ADS and per ADS data)

December September September 31, 30, 30, 2019 2020 2020 RMB RMB US$ Mezzanine equity 466,071 484,638 71,379 Shareholders? equity Class A common shares (US$0.00001par value; 10,000,000,000 and10,000,000,000 shares authorized,1,301,845,404 shares issued and1,293,162,504 shares outstanding as 80 80 12 of December 31, 2019; 1,312,572,924shares issued and 1,293,160,576shares outstanding as of September30, 2020, respectively)Class B common shares (US$0.00001par value; 1,000,000,000 and1,000,000,000 shares authorized,326,509,555 and 326,509,555 shares 24 24 4 issued and outstanding as ofDecember 31, 2019 and September 30,2020, respectively)Treasury Shares (US$0.00001 parvalue; 8,682,900 and 19,412,348shares held as of December 31, 2019 (168,072 ) (320,858 ) (47,257 )and September 30, 2020,respectively)Additional paid-in capital 21,921,562 22,601,191 3,328,796 Statutory reserves 149,961 85,282 12,561 Retained earnings 10,272,122 19,834,864 2,921,360 Accumulated other comprehensive 890,209 150,707 22,197 income Total JOYY Inc.?s shareholders? 33,065,886 42,351,290 6,237,673 equity Non-controlling interests 5,351,880 9,928 1,462 Total shareholders? equity^(2) 38,417,766 42,361,218 6,239,135 Total liabilities, mezzanine equity 52,209,483 54,418,574 8,014,989 andshareholders? equity

Increase in the amounts of investments was mainly attributable to the(1) Group's investment in Huya. On April 3rd, 2020, Huya ceased to be a subsidiary of the Company and the Company recognized its investment in Huya as an equity method investment. On January 1, 2020, the Company adopted ASC326, ?Financial Instruments-Credit Losses? using modified-retrospective transition(2) approach. Following the adoption of this guidance, a cumulative-effect adjustment to shareholders? equity, amounting to RMB12.1 million, was recognized as of January 1, 2020.

JOYY INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended Nine Months Ended September June September September September September September 30, 30, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Net revenues Live streaming^ 4,317,840 5,607,748 6,049,090 890,935 11,251,654 16,138,599 2,376,959 (1)Others 299,425 232,344 237,285 34,948 799,503 725,365 106,835 Total net 4,617,265 5,840,092 6,286,375 925,883 12,051,157 16,863,964 2,483,794 revenues Cost of (2,854,546 ) (3,769,095 ) (3,961,719 ) (583,498 ) (7,155,814 ) (10,739,492 ) (1,581,756 )revenues^(2) Gross profit 1,762,719 2,070,997 2,324,656 342,385 4,895,343 6,124,472 902,038 Operating expenses^(2)Research anddevelopment (538,089 ) (693,458 ) (636,015 ) (93,675 ) (1,402,791 ) (1,895,637 ) (279,197 )expensesSales andmarketing (957,261 ) (909,825 ) (1,083,038 ) (159,514 ) (2,393,235 ) (2,925,127 ) (430,825 )expensesGeneral andadministrative (312,516 ) (412,714 ) (280,831 ) (41,362 ) (764,774 ) (891,681 ) (131,330 )expenses Total operating (1,807,866 ) (2,015,997 ) (1,999,884 ) (294,551 ) (4,560,800 ) (5,712,445 ) (841,352 )expenses Other income 141,570 40,243 141,801 20,885 211,469 202,854 29,877 Operating 96,423 95,243 466,573 68,719 546,012 614,881 90,563 income Interest (123,456 ) (131,656 ) (135,193 ) (19,912 ) (141,943 ) (391,364 ) (57,642 )expensesInterest incomeand investment 116,598 162,519 152,429 22,450 291,900 429,341 63,235 incomeForeigncurrency 15,748 3,246 (55,002 ) (8,101 ) 30,469 (63,735 ) (9,387 )exchange gains(losses), net(Loss) gain ondisposal anddeemed disposal - (13,444 ) 2,040,359 300,512 - 2,135,818 314,572 of investments^(3)(Loss) gain onfair value (11,492 ) 708,633 (39,792 ) (5,861 ) 2,652,642 1,002,635 147,672 change ofinvestmentsFair valuechange on (1,753 ) 2,174 (29,664 ) (4,369 ) (1,753 ) (17,144 ) (2,525 )derivativesOthernon-operating - (4,257 ) (1,000 ) (147 ) - (17,257 ) (2,542 )expenses Income beforeincome tax 92,068 822,458 2,398,710 353,291 3,377,327 3,693,175 543,946 expenses Income tax (58,692 ) (187,246 ) (127,215 ) (18,737 ) (285,959 ) (458,917 ) (67,591 )expenses Income beforeshare of incomein equitymethod 33,376 635,212 2,271,495 334,554 3,091,368 3,234,258 476,355 investments,net of incometaxes Share of income(loss) inequity method 21,189 (23,544 ) 26,550 3,910 35,337 (9,085 ) (1,338 )investments,net of incometaxes Net income fromcontinuing 54,565 611,668 2,298,045 338,464 3,126,705 3,225,173 475,017 operations Net income fromdiscontinued 123,242 6,343,255 - - 308,503 6,514,481 959,480 operations^(4) Net income 177,807 6,954,923 2,298,045 338,464 3,435,208 9,739,654 1,434,497 Less: Netincome (loss)attributable tothenon-controllinginterestshareholders 67,879 (43,062 ) (5,148 ) (758 ) 162,770 51,811 7,631 and themezzanineequityclassified asnon-controllinginterestshareholders Net incomeattributable tocontrolling 109,928 6,997,985 2,303,193 339,222 3,272,438 9,687,843 1,426,866 interest ofJOYY Inc. Including: Net income fromcontinuingoperationsattributable to 61,757 619,426 2,303,193 339,222 3,148,022 3,242,757 477,606 controllinginterest ofJOYY Inc.Net income fromdiscontinuedoperationsattributable to 48,171 6,378,559 - - 124,416 6,445,086 949,260 controllinginterest ofJOYY Inc. Less: Accretionofsubsidiaries?redeemableconvertible 9,715 9,865 9,642 1,420 28,556 29,212 4,302 preferredshares toredemptionvalueCumulativedividend onsubsidiary?s 6,982 7,090 6,930 1,021 20,523 20,995 3,092 Series APreferredShares Net incomeattributable tocommon 93,231 6,981,030 2,286,621 336,781 3,223,359 9,637,636 1,419,472 shareholders ofJOYY Inc. Including: Net income fromcontinuingoperationsattributable to 45,060 602,471 2,286,621 336,781 3,098,943 3,192,550 470,212 commonshareholders ofJOYY Inc.Net income fromdiscontinuedoperationsattributable to 48,171 6,378,559 - - 124,416 6,445,086 949,260 commonshareholders ofJOYY Inc.

JOYY INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended Nine Months Ended September June September September September September September 30, 30, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Net income per ADS?Basic 1.16 87.69 28.49 4.20 42.24 120.55 17.76Continuing 0.56 7.57 28.49 4.20 40.61 39.93 5.88operationsDiscontinued 0.60 80.12 - - 1.63 80.62 11.88operations?Diluted 1.11 85.68 25.92 3.82 41.20 108.54 15.99Continuing 0.56 7.39 25.92 3.82 39.79 38.67 5.70operationsDiscontinued 0.55 78.29 - - 1.41 69.87 10.29operations Weightedaveragenumber ofADS used in calculatingnet incomeper ADS?Basic 80,033,607 79,609,517 80,262,892 80,262,892 76,310,648 79,949,342 79,949,342?Diluted 80,973,447 81,477,788 93,076,688 93,076,688 81,040,767 92,186,612 92,186,612

(1) Live streaming revenues by geographical areas were as follows:



Three Months Ended Nine Months Ended September June September September September September September 30, 30, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ PRC 3,138,668 2,965,737 3,110,451 458,120 8,886,950 8,895,787 1,310,208Non-PRC 1,179,172 2,642,011 2,938,639 432,815 2,364,704 7,242,812 1,066,751

(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:



Three Months Ended Nine Months Ended September June September September September September September 30, 30, 30, 30, 30 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Cost of 12,111 9,637 13,676 2,014 33,734 34,962 5,149revenuesResearch anddevelopment 105,002 92,465 86,504 12,741 309,883 266,969 39,320expensesSales andmarketing 1,175 2,024 2,744 404 4,792 6,683 984expensesGeneral andadministrative 46,223 91,019 85,254 12,557 145,718 221,475 32,620expenses

(Loss) gain on disposal and deemed disposal of investments mainly(3) represented the gain from our further disposal of our equity interest in Huya in the third quarter of 2020. Gain from the disposal and deconsolidation amounted to around RMB6.4(4) billion was reported as part of the net income from discontinued operations in the second quarter of 2020.

JOYY INC.RECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended Nine Months Ended September June September September September September September 30, 30, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Operating 96,423 95,243 466,573 68,719 546,012 614,881 90,563incomeShare-basedcompensation 164,511 195,145 188,178 27,716 494,127 530,089 78,073expensesImpairmentof goodwill 10,000 43,861 - - 10,000 43,861 6,460andinvestmentsAmortizationofintangible 193,487 175,043 171,085 25,198 444,227 532,317 78,402assets frombusinessacquisitions Non-GAAPoperating 464,421 509,292 825,836 121,633 1,494,366 1,721,148 253,498income

Net incomefrom 54,565 611,668 2,298,045 338,464 3,126,705 3,225,173 475,017 continuingoperationsShare-basedcompensation 164,511 195,145 188,178 27,716 494,127 530,089 78,073 expensesImpairmentof goodwill 10,000 43,861 - - 10,000 43,861 6,460 andinvestmentsAmortizationofintangible 193,487 175,043 171,085 25,198 444,227 532,317 78,402 assets frombusinessacquisitions(Loss) gainon disposaland deemed - 13,444 (2,040,359 ) (300,512 ) - (2,135,818 ) (314,572 )disposal ofinvestments(Loss) gainon fairvalue change 11,492 (708,633 ) 39,792 5,861 (2,652,642 ) (1,002,635 ) (147,672 )ofinvestments^(1)Reconcilingitems on theshare ofequity (9,461 ) 8,805 25,879 3,812 (13,997 ) 37,117 5,467 methodinvestments^(1)Fair valuechange on 1,753 (2,174 ) 29,664 4,369 1,753 17,144 2,525 derivativesInterestexpensesrelated totheconvertible 100,885 106,908 107,728 15,867 105,172 316,878 46,671 bonds?amortizationto facevalueIncome taxeffects on (40,166 ) 42,452 (15,241 ) (2,245 ) (89,053 ) 47,766 7,035 non-GAAPadjustments Non-GAAP netincome from 487,066 486,519 804,771 118,530 1,426,292 1,611,892 237,406 continuingoperations

Net income fromcontinuingoperationsattributable to 45,060 602,471 2,286,621 336,781 3,098,943 3,192,550 470,212 commonshareholders ofJOYY Inc.Share-basedcompensation 164,511 195,145 188,178 27,716 494,127 530,089 78,073 expensesImpairment ofgoodwill and 10,000 43,861 - - 10,000 43,861 6,460 investmentsAmortization ofintangibleassets from 193,487 175,043 171,085 25,198 444,227 532,317 78,402 businessacquisitions(Loss) gain ondisposal and - 13,444 (2,040,359 ) (300,512 ) - (2,135,818 ) (314,572 )deemed disposalof investments(Loss) gain onfair value 11,492 (708,633 ) 39,792 5,861 (2,652,642 ) (1,002,635 ) (147,672 )change ofinvestmentsReconcilingitems on theshare of equity (9,461 ) 8,805 25,879 3,812 (13,997 ) 37,117 5,467 methodinvestmentsFair valuechange on 1,753 (2,174 ) 29,664 4,369 1,753 17,144 2,525 derivativesInterestexpensesrelated to theconvertible 100,885 106,908 107,728 15,867 105,172 316,878 46,671 bonds?amortization toface valueAccretion,cumulativedividend anddeemed dividend 16,697 16,955 16,572 2,441 49,079 50,207 7,394 tosubsidiaries?preferredshareholdersIncome taxeffects on (40,166 ) 42,452 (15,241 ) (2,245 ) (89,053 ) 47,766 7,035 non-GAAPadjustmentsNon-GAAPadjustments fornet income(loss)attributable to (847 ) (688 ) (569 ) (84 ) (1,666 ) 19 3 thenon-controllinginterestshareholders Non-GAAP netincome fromcontinuingoperationsattributable to 493,411 493,589 809,350 119,204 1,445,943 1,629,495 239,998 controllinginterest andcommonshareholders ofJOYY Inc.



Non-GAAPnet income fromcontinuingoperationsper ADS?Basic 6.17 6.20 10.08 1.49 18.95 20.38 3.00?Diluted 5.60 5.57 8.89 1.31 18.09 18.28 2.69Weightedaveragenumber ofADS used incalculatingNon-GAAP net incomefromcontinuingoperationsper ADS?Basic 80,033,607 79,609,517 80,262,892 80,262,892 76,310,648 79,949,342 79,949,342?Diluted 91,400,547 91,904,888 93,076,688 93,076,688 81,040,767 92,186,612 92,186,612



(Loss) gain on fair value change of equity investees? investments was(1) reclassified to the reconciling items on the equity method investments from gain on fair value change of investments

JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended September 30, 2020 YY Bigo Elimination^ Total Total (1) RMB RMB RMB RMB US$ Net revenues Live streaming 2,770,876 3,278,214 - 6,049,090 890,935 Others 120,661 116,624 - 237,285 34,948 Total net 2,891,537 3,394,838 - 6,286,375 925,883 revenues Cost of (1,624,172 ) (2,337,547 ) - (3,961,719 ) (583,498 )revenues^(2) Gross profit 1,267,365 1,057,291 - 2,324,656 342,385 Operating expenses^(2)Research anddevelopment (303,147 ) (332,868 ) - (636,015 ) (93,675 )expensesSales andmarketing (230,230 ) (852,808 ) - (1,083,038 ) (159,514 )expensesGeneral andadministrative (90,752 ) (190,079 ) - (280,831 ) (41,362 )expenses Totaloperating (624,129 ) (1,375,755 ) - (1,999,884 ) (294,551 )expenses Other income 135,286 6,515 - 141,801 20,885 Operating 778,522 (311,949 ) - 466,573 68,719 income (loss) Othernon-operating (1,000 ) - - (1,000 ) (147 )expensesInterest (127,167 ) (12,516 ) 4,490 (135,193 ) (19,912 )expensesInterestincome and 156,780 139 (4,490 ) 152,429 22,450 investmentincomeForeigncurrency 1,014 (56,016 ) - (55,002 ) (8,101 )exchange gains(loss), netFair valuechange on (29,664 ) - - (29,664 ) (4,369 )derivativesGain ondisposal anddeemed 2,040,359 - - 2,040,359 300,512 disposal ofinvestmentsLoss on fairvalue change (39,792 ) - - (39,792 ) (5,861 )of investments Income (loss)before income 2,779,052 (380,342 ) - 2,398,710 353,291 tax expenses Income tax (124,579 ) (2,636 ) - (127,215 ) (18,737 )expenses Income (loss)before shareof loss inequity method 2,654,473 (382,978 ) - 2,271,495 334,554 investments,net of incometaxes Share of gainin equitymethod 26,550 - - 26,550 3,910 investments,net of incometaxes Net income(loss) from 2,681,023 (382,978 ) - 2,298,045 338,464 continuingoperations

(1) The elimination mainly consists of interest income and interest expenses generated from the loan between YY and Bigo segments.(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three Months Ended September 30, 2020 YY Bigo Total Total RMB RMB RMB US$ Cost of revenues 9,738 3,938 13,676 2,014Research and development expenses 36,643 49,861 86,504 12,741Sales and marketing expenses 1,772 972 2,744 404General and administrative expenses (7,860 ) 93,114 85,254 12,557

JOYY INC.RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended September 30, 2020 YY Bigo Total Total RMB RMB RMB US$ Operating income (loss) 778,522 (311,949 ) 466,573 68,719 Share-based 40,293 147,885 188,178 27,716 compensation expensesAmortization ofintangible assets from - 171,085 171,085 25,198 business acquisitions Non-GAAP operating 818,815 7,021 825,836 121,633 income Net income (loss) from 2,681,023 (382,978 ) 2,298,045 338,464 continuing operationsShare-based 40,293 147,885 188,178 27,716 compensation expensesAmortization ofintangible assets from - 171,085 171,085 25,198 business acquisitionsGain on disposal anddeemed disposal of (2,040,359 ) - (2,040,359 ) (300,512 )investmentsLoss on fair value 39,792 - 39,792 5,861 change of investmentsReconciling items onthe share of equity 25,879 - 25,879 3,812 method investmentsFair value change on 29,664 - 29,664 4,369 derivativesInterest expensesrelated to theconvertible bonds? 107,728 - 107,728 15,867 amortization to facevalueIncome tax effects on (7,248 ) (7,993 ) (15,241 ) (2,245 )non-GAAP adjustments Non-GAAP net income (loss) from continuing 876,772 (72,001 ) 804,771 118,530 operations

JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended June 30, 2020 YY Bigo Elimination Total Total ^(1) RMB RMB RMB RMB US$ Net revenues Live streaming 2,661,788 2,945,960 - 5,607,748 793,725 Others 115,618 116,726 - 232,344 32,886 Total net 2,777,406 3,062,686 - 5,840,092 826,611 revenues Cost of (1,583,125 ) (2,185,970 ) - (3,769,095 ) (533,481 )revenues^(2) Gross profit 1,194,281 876,716 - 2,070,997 293,130 Operating expenses^(2)Research anddevelopment (292,459 ) (400,999 ) - (693,458 ) (98,153 )expensesSales andmarketing (224,955 ) (684,870 ) - (909,825 ) (128,777 )expensesGeneral andadministrative (232,427 ) (180,287 ) - (412,714 ) (58,416 )expenses Totaloperating (749,841 ) (1,266,156 ) - (2,015,997 ) (285,346 )expenses Other income 31,679 8,564 - 40,243 5,696 Operating 476,119 (380,876 ) - 95,243 13,480 income (loss) Othernon-operating - (4,257 ) - (4,257 ) (603 )expensesInterest (126,282 ) (14,231 ) 8,857 (131,656 ) (18,635 )expensesInterestincome and 171,299 77 (8,857 ) 162,519 23,003 investmentincomeForeigncurrency 2,839 407 - 3,246 459 exchangegains, netFair valuechange on 2,174 - - 2,174 308 derivativesLoss ondisposal anddeemed (13,444 ) - - (13,444 ) (1,903 )disposal ofinvestmentsGain on fairvalue change 708,633 - - 708,633 100,300 of investments Income (loss)before income 1,221,338 (398,880 ) - 822,458 116,409 tax expenses Income tax(expenses) (203,468 ) 16,222 - (187,246 ) (26,503 )benefits Income (loss)before shareof loss inequity method 1,017,870 (382,658 ) - 635,212 89,906 investments,net of incometaxes Share of lossin equitymethod (23,544 ) - - (23,544 ) (3,332 )investments,net of incometaxes Net income(loss) from 994,326 (382,658 ) - 611,668 86,574 continuingoperations

(1) The elimination mainly consists of interest income and interest expenses generated from the loan between YY and Bigo segments.(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three Months Ended June 30, 2020 YY Bigo Total Total RMB RMB RMB US$ Cost of revenues 1,103 8,534 9,637 1,364Research and development 26,528 65,937 92,465 13,088expensesSales and marketing 816 1,208 2,024 286expensesGeneral and administrative 37,820 91,019 12,883expenses 53,199

JOYY INC.RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended June 30, 2020 YY Bigo Total Total RMB RMB RMB US$ Operating income (loss) 476,119 (380,876 ) 95,243 13,480 Share-based compensation 81,646 113,499 195,145 27,621 expensesImpairment of goodwill and 43,861 - 43,861 6,208 investmentsAmortization of intangibleassets from business - 175,043 175,043 24,776 acquisitions Non-GAAP operating income 601,626 (92,334 ) 509,292 72,085 (loss) Net income (loss) from 994,326 (382,658 ) 611,668 86,574 continuing operationsShare-based compensation 81,646 113,499 195,145 27,621 expensesImpairment of goodwill and 43,861 - 43,861 6,208 investmentsAmortization of intangibleassets from business - 175,043 175,043 24,776 acquisitionsLoss on disposal and deemed 13,444 - 13,444 1,903 disposal of investmentsGain on fair value change (708,633 ) - (708,633 ) (100,300 )of investmentsReconciling items on theshare of equity method 8,805 - 8,805 1,246 investmentsFair value change on (2,174 ) - (2,174 ) (308 )derivativesInterest expenses relatedto the convertible bonds? 106,908 - 106,908 15,132 amortization to face valueIncome tax effects on 65,180 (22,728 ) 42,452 6,009 non-GAAP adjustments Non-GAAP net income (loss) 603,363 (116,844 ) 486,519 68,861 from continuing operations

JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended September 30, 2019 YY Bigo Elimination Total Total ^(1) RMB RMB RMB RMB US$ Net revenues Live streaming 2,899,044 1,418,796 - 4,317,840 604,088 Others 181,006 118,419 - 299,425 41,891 Total net 3,080,050 1,537,215 - 4,617,265 645,979 revenues Cost of (1,729,389 ) (1,125,157 ) - (2,854,546 ) (399,366 ) revenues^(2) Gross profit 1,350,661 412,058 - 1,762,719 246,613 Operating expenses^(2)Research anddevelopment (249,620 ) (288,469 ) - (538,089 ) (75,281 ) expensesSales andmarketing (340,619 ) (616,642 ) - (957,261 ) (133,926 ) expensesGeneral andadministrative (225,281 ) (87,235 ) - (312,516 ) (43,723 ) expenses Totaloperating (815,520 ) (992,346 ) - (1,807,866 ) (252,930 ) expenses Other income 136,535 5,035 - 141,570 19,806 Operating 671,676 (575,253 ) - 96,423 13,489 income (loss) Interest (123,456 ) (11,078 ) 11,078 (123,456 ) (17,272 ) expensesInterestincome and 127,068 608 (11,078 ) 116,598 16,313 investmentincomeForeigncurrencyexchange 2,798 12,950 - 15,748 2,203 (losses)gains, netFair valuechange on (1,753 ) - - (1,753 ) (245 ) derivativesLoss on fairvalue change (11,492 ) - - (11,492 ) (1,608 ) of investments Income (loss)before income 664,841 (572,773 ) - 92,068 12,880 tax expenses Income tax(expenses) (146,835 ) 88,143 - (58,692 ) (8,211 ) benefits Income (loss)before shareof income inequity method 518,006 (484,630 ) - 33,376 4,669 investments,net of incometaxes Share ofincome inequity method 21,189 - - 21,189 2,964 investments,net of incometaxes Net income(loss) from 539,195 (484,630 ) - 54,565 7,633 continuingoperations

(1) The elimination mainly consists of interest income and interest expenses generated from the loan between YY and Bigo segments.(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three Months Ended September 30, 2019 YY Bigo Total Total RMB RMB RMB US$ Cost of revenues 5,043 7,068 12,111 1,694Research and development expenses 26,848 78,154 105,002 14,690Sales and marketing expenses 419 756 1,175 164General and administrative expenses 41,265 4,958 46,223 6,467

JOYY INC.RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands, except share, ADS and per ADS data)

Three Months Ended September 30, 2019 YY Bigo Total Total RMB RMB RMB US$ Operating income (loss) 671,676 (575,253 ) 96,423 13,489 Share-based compensation 73,575 90,936 164,511 23,015 expensesImpairment of goodwill and 10,000 - 10,000 1,399 investmentsAmortization of intangibleassets from business - 193,487 193,487 27,070 acquisitions Non-GAAP operating income 755,251 (290,830 ) 464,421 64,973 (loss) Net income (loss) from 539,195 (484,630 ) 54,565 7,633 continuing operationsShare-based compensation 73,575 90,936 164,511 23,015 expensesImpairment of goodwill and 10,000 - 10,000 1,399 investmentsAmortization of intangibleassets from business - 193,487 193,487 27,070 acquisitionsGain on fair value change of 11,492 - 11,492 1,608 investmentsReconciling items on the share (9,461 ) - (9,461 ) (1,324 )of equity method investmentsFair value change on 1,753 - 1,753 245 derivativesInterest expenses related tothe convertible bonds? 100,885 - 100,885 14,114 amortization to face valueIncome tax effects on non-GAAP (188 ) (39,978 ) (40,166 ) (5,619 )adjustments Non-GAAP net income (loss) from 727,251 (240,185 ) 487,066 68,141 continuing operations