GlobeNewswire Inc | Aug 12, 2020 06:30PM EDT

August 12, 2020

GUANGZHOU, China, Aug. 13, 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 second quarter of 2020.

Second Quarter 2020 Financial Highlights1

-- Net revenues increased by 36.3% to RMB5,840.1 million (US$826.6 million) from RMB4,284.8 million in the corresponding period of 2019. -- Net income from continuing operations attributable to controlling interest of JOYY Inc.2 was RMB619.4 million (US$87.7 million), compared to net loss RMB6.1 million in the corresponding period of 2019, primarily due to the impact of income from fair value change in investment. -- Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY Inc.3 increased by 38.3% to RMB493.6 million (US$69.9 million) from RMB357.0 million in the corresponding period of 2019, primarily due to the decrease in the operation loss of Bigo Inc (Bigo).

Second Quarter 2020 Operational Highlights

-- Global average mobile MAUs4 increased by 21.0% to 457.1 million, among that 91.0% were from markets outside of China. -- Average mobile MAUs of Likee (formerly known as Like) increased by 86.2% to 150.3 million from 80.7 million in the corresponding period of 2019. -- Average mobile MAUs of global live streaming services increased by 20.4% to 102.3 million from 85.0 million in the corresponding period of 2019, among that (i) 41.2 million were from YY, which increased by 6.0% year over year; and (ii) 61.1 million were from outside of China, including 29.4 million from Bigo Live, which increased by 41.3% year over year, and 31.7 million from HAGO, which increased by 25.3% year over year. -- Average mobile MAUs of video communication service was 204.4 million. -- Total number of paying users5 of YY decreased by 2.2% to 4.1 million from 4.2 million in the corresponding period of 2019, primarily due to the impact of COVID-19.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, During the second quarter of 2020, we maintained our focus on empowering our live streaming and short-form video dual-growth engine as we continued to upgrade our platforms, localize our operations, and create joyful experiences for people around the world. To help people cope with the difficulties of COVID-19, we leveraged Bigo Live and our extensive global coverage to launch a series of online charity events, including a 24-hour non-stop globe charity concert, to enhance Bigo Lives brand recognition in various markets and fuel the platforms robust operating performance. As a result, during the quarter, Bigo Lives mobile MAUs and paying users achieved very impressive growth, and live streaming revenues of Bigo segment contributed more than half of our total live streaming revenues for the first time ever. On the short-form video front, we also focused on cultivating Likees global ecosystem by diversifying its content offerings, refining its product features, and tailoring its expansion initiatives to different regions. Likees total MAUs increased by 86.2% year over year to 150.3 million in the second quarter of 2020. Meanwhile, we also continued to pave the way for Hagos future growth by refining its social features to cultivate the platforms social atmosphere and enhance its monetization capabilities.

Mr. Li continued, On the domestic front, we continued to strengthen our leadership in Chinas entertainment live streaming industry by further diversifying YY Lives live streaming content offerings through the introduction of new live streaming celebrity variety shows and more diverse live streaming channels. Looking ahead, we believe that our thriving global ecosystem will enable our network effects to strengthen, product matrix synergies to evolve, and user base to expand. Despite the outbreak of COVID-19 and resulting macroeconomic and geopolitical uncertainty, we believe that the global landscape for live streaming and short-form videos remains promising, and we plan to uphold our commitment to building a truly world-class video-based social media platform for all.

Mr. Bing Jin, Chief Financial Officer of JOYY, further commented, Despite the myriad of challenges we have faced from the COVID-19 outbreak and geopolitical uncertainties, we once again delivered strong financial results. In the second quarter of 2020, our total revenues grew by 36.3% year over year to RMB5.84 billion, exceeding the high-end of our previous guidance. In particular, the Bigo segments revenue grew by 148.8% year over year to RMB 3,062.7 million, mostly driven by live streaming revenue growth. While the impact of COVID-19 on the macro economy is generally impossible to predict, we are confident that the underlying strength of our business model, sufficient cash reserves, and strong cash generation capabilities will enable us to sustain our growth momentum going forward. As such, our long-term plans remain largely unchanged, and we will continue to invest in cultivating our global live streaming and short-from video ecosystem to empower our dual-growth engine.

Second Quarter 2020 Financial Results

NET REVENUES Net revenues increased by 36.3% to RMB5,840.1 million (US$826.6 million) in the second quarter of 2020 from RMB4,284.8 million in the corresponding period of 2019, primarily driven by an increase in live streaming revenues in Bigo segment.

Live streaming revenues increased by 40.1% to RMB5,607.7 million (US$793.7 million) in the second quarter of 2020 from RMB4,001.3 million in the corresponding period of 2019, primarily attributable to the continued live streaming revenues growth in Bigo segment.

Other revenues decreased by 18.0% to RMB232.3 million (US$32.9 million) in the second quarter of 2020 from RMB283.5 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 50.8% to RMB3,769.1 million (US$533.5 million) in the second quarter of 2020 from RMB2,499.0 million in the corresponding period of 2019. Revenue-sharing fees and content costs increased to RMB2,597.4 million (US$367.6 million) in the second quarter of 2020 from RMB1,793.7 million in the corresponding period of 2019 as a result of the increase in live streaming revenues of the Company. Bandwidth costs increased to RMB280.7 million (US$39.7 million) in the second quarter of 2020 from RMB228.1 million in the corresponding period of 2019, as the overseas user base and time spent continued to expand following the consolidation of Bigo.

Gross profit increased by 16.0% to RMB2,071.0 million (US$293.1 million) in the second quarter of 2020 from RMB1,785.7 million in the corresponding period of 2019. Gross margin was 35.5% in the second quarter of 2020, compared to 41.7% 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 second quarter of 2020, compared to the corresponding period of 2019.

OPERATING INCOMEOperating expenses were RMB2,016.0 million (US$285.3 million) in the second quarter of 2020, compared to RMB1,791.6 million in the corresponding period of 2019. Among the operating expenses, sales and marketing expenses decreased to RMB909.8 million (US$128.8 million) in the second quarter of 2020 from RMB979.9 million in the corresponding period of 2019, primarily due to the Companys less spending in sales and marketing activities in overseas markets due to the COVID-19 outbreak. Research and development expenses increased to RMB693.5 million (US$98.2 million) in the second quarter of 2020 from RMB550.0 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.

Operating income was RMB95.2 million (US$13.5 million) in the second quarter of 2020, compared to RMB4.3 million in the corresponding period of 2019. Operating margin was 1.6% in the second quarter of 2020, compared to 0.1% in the corresponding period of 2019, primarily due to the decrease in operation loss of Bigo segment.

Non-GAAP operating income6 increased by 24.6% to RMB509.3 million (US$72.1 million) in the second quarter of 2020 from RMB408.7 million in the corresponding period of 2019. Non-GAAP operating margin7 was 8.7% in the second quarter of 2020, compared to 9.5% in the corresponding period of 2019.

NET INCOMENet income from continuing operations attributable to controlling interest of JOYY Inc. was RMB619.4 million (US$87.7 million) in the second quarter of 2020, compared to net loss RMB6.1 million in the corresponding period of 2019. Net margin was 10.6% in the second quarter of 2020, compared to negative 0.1% in the corresponding period of 2019, mainly due to the income from fair value gain resulting in fair value change in an investment which recorded observable price change in the second quarter of 2020.

Non-GAAP net income from continuing operations attributable to controlling interest and common shareholders of JOYY Inc. increased by 38.3% to RMB493.6 million (US$69.9 million) in the second quarter of 2020 from RMB357.0 million in the corresponding period of 2019. Non-GAAP net margin8 increased to 8.5% in the second quarter of 2020 from 8.3% in the corresponding period of 2019.

NET INCOME PER ADSDiluted net income from continuing operations per ADS9 was RMB7.39 (US$1.05) in the second quarter of 2020, compared to diluted net loss from continuing operations per ADS RMB0.28 in the corresponding period of 2019.

Non-GAAP diluted net income from continuing operations per ADS10 increased by 27.2% to RMB5.57 (US$0.79) in the second quarter of 2020 from RMB4.38 in the corresponding period of 2019.

BALANCE SHEET AND CASH FLOWSAs of June 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 RMB19,360.5 million (US$2,740.3 million). For the second quarter of 2020, net cash from operating activities was RMB840.8 million (US$119.0 million).

SHARES OUTSTANDING As of June 30, 2020, the Company had a total of 1,616.1 million common shares, or the equivalent of 80.8 million ADSs, outstanding.

Business OutlookFor the third quarter of 2020, the Company expects net revenues to be between RMB5.85 billion and RMB6.00 billion, representing a year-over-year growth of 26.7% to 29.9%, excluding the revenue contribution from Huya in the same period of last year. This forecast considers the potential impact of the COVID-19 outbreak and reflects the Companys current and preliminary views on the market and operational conditions, which are subject to change, particularly as to the potential impact of the COVID-19 on the economy in China and elsewhere.

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 second 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 second quarter of 2020, which is expected to be paid on September 18, 2020 to shareholders of record as of the close of business on September 4, 2020. The ex-dividend date will be September 3, 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 DevelopmentsOn August 10, 2020, the Company entered into a definitive share transfer agreement with Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited (Tencent), pursuant to which the Company will transfer 30,000,000 Class B ordinary shares of HUYA Inc. (NYSE: HUYA) (Huya), a leading game live streaming platform in China, to Tencent for an aggregate purchase price of US$810.0 million in cash. The share transfer is subject to customary closing conditions. Immediately after the closing of such share transfer, the Company would hold 38,374,463 Class B ordinary shares of Huya.

Conference Call InformationThe Company will hold a conference call on 9:00 PM U.S.Eastern Time onWednesday, August 12, 2020 (9:00 AMBeijing/Hong KongTime onThursday, August 13, 2020) to discuss the financial results. Details for the conference call are as follows:

Event Title: JOYYs Second Quarter 2020 Earnings Conference CallConference ID: #1085396

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/1085396

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 August 20, 2020, by dialing the following numbers:

United States: +1-646-254-3697International: +61-2-8199-0299Conference ID: #1085396

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 RMB7.0651 to US$1.00, the noon buying rate in effect on June 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 YY Live, a leading live streaming social media platform in China. In addition, JOYY completed the acquisition of Bigo in March 2019. Bigo is a fast-growing global tech company. Headquartered in Singapore, Bigo owns 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, 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, 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, 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, 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, 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, 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, gain on 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.Matthew ZhaoMaggie YanTel: +86 (20) 8212-0000Email: IR@YY.com

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



1 On April 3, 2020, the Company transferred 16,523,819 Class B ordinary shares of HUYA Inc. (NYSE: HUYA) (Huya) to Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited (Tencent) for an aggregate purchase price of approximately US$262.6 million, pursuant to Tencents exercise of its option to purchase additional shares of Huya from JOYY. Immediately after the closing of such share transfer, Tencent increased its voting power in Huya to 50.1% on a fully-diluted basis, or 50.9% calculated based on the then total issued and outstanding shares of Huya, and started to consolidate financial statements of Huya. Starting from the second quarter of 2020, the Company deconsolidated 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 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 apply the equity method accounting one quarter in arrears to enable the Company to provide its financial disclosures regardless of Huya's reporting schedule, which may be different with that of the Company. 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 RMB125.8 million (US$17.8 million) and RMB363.1 million in the second quarters 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 June June 31, 30, 30, 2019 2020 2020 RMB RMB US$Assets Current assets Cash and cash equivalents 2,780,345 4,756,617 673,255Restricted cash and cash equivalents 3,500 3,500 495Short-term deposits 10,027,440 10,171,997 1,439,753Restricted short-term deposits 653,034 503,040 71,201Short-term investments 3,402,658 3,925,328 555,594Accounts receivable, net 675,196 946,684 133,994Amounts due from related parties 1,709 13,581 1,922Financing receivables, net 105,344 32,216 4,560Prepayments and other current assets 569,730 619,324 87,661Assets held for sale 10,581,013 - - Total current assets 28,799,969 20,972,287 2,968,435 Non-current assets Deferred tax assets 81,819 82,732 11,710Investments^(1) 1,983,483 10,997,816 1,556,640Property and equipment, net 2,159,674 2,374,904 336,146Land use rights, net 1,736,544 1,712,496 242,388Intangible assets, net 3,134,778 2,813,681 398,251Right-of-use assets, net 172,783 161,688 22,885Goodwill 12,947,192 13,138,748 1,859,669Financing receivables, net 129,380 129,389 18,314Other non-current assets 289,131 346,928 49,104Assets held for sale 774,730 - - Total non-current assets 23,409,514 31,758,382 4,495,107 Total assets 52,209,483 52,730,669 7,463,542 Liabilities, mezzanine equity and shareholders? equityCurrent liabilities Accounts payable 120,826 132,177 18,708Deferred revenue 548,303 572,704 81,061Advances from customers 99,130 94,948 13,439Income taxes payable 425,572 432,757 61,253Accrued liabilities and other current 3,150,303 3,282,825 464,654liabilitiesAmounts due to related parties 205,921 31,105 4,403Lease liabilities due within one year 83,686 99,301 14,055Short-term loans 557,203 1,062,770 150,425Liabilities held for sale 2,446,677 - - Total current liabilities 7,637,621 5,708,587 807,998 Non-current liabilities Convertible bonds 5,008,571 5,293,255 749,212Lease liabilities 92,669 72,496 10,261Deferred revenue 75,628 66,363 9,393Deferred tax liabilities 264,639 319,475 45,219Other non-current liabilities 11,495 - -Liabilities held for sale 235,023 - - Total non-current liabilities 5,688,025 5,751,589 814,085 Total liabilities 13,325,646 11,460,176 1,622,083

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

December June June 31, 30, 30, 2019 2020 2020 RMB RMB US$ Mezzanine equity 466,071 493,531 69,855 Shareholders? equity Class A common shares (US$0.00001 parvalue; 10,000,000,000 and 10,000,000,000shares authorized, 1,301,845,404 sharesissued and 1,293,162,504 shares 80 80 11outstanding as of December 31, 2019;1,309,725,264 shares issued and1,289,554,068 shares outstanding as ofJune 30, 2020, respectively)Class B common shares (US$0.00001 parvalue; 1,000,000,000 and 1,000,000,000shares authorized, 326,509,555 and 24 24 3326,509,555 shares issued and outstandingas of December 31, 2019 and June 30,2020, respectively)Treasury Shares (US$0.00001 par value;8,682,900 and 20,171,196 shares held as (168,072) (320,858) (45,415)of December 31, 2019 and June 30, 2020,respectively)Additional paid-in capital 21,921,562 22,372,972 3,166,689Statutory reserves 149,961 85,282 12,071Retained earnings 10,272,122 17,691,628 2,504,087Accumulated other comprehensive income 890,209 919,491 130,146 Total JOYY Inc.?s shareholders? equity 33,065,886 40,748,619 5,767,592 Non-controlling interests 5,351,880 28,343 4,012 Total shareholders? equity^(2) 38,417,766 40,776,962 5,771,604 Total liabilities, mezzanine equity and shareholders? equity 52,209,483 52,730,669 7,463,542

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 Six Months Ended June March June June June June June 30, 31, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Net revenues Live streaming^ 4,001,276 4,481,761 5,607,748 793,725 6,933,814 10,089,509 1,428,077(1)Others 283,510 255,736 232,344 32,886 500,078 488,080 69,083 Total net 4,284,786 4,737,497 5,840,092 826,611 7,433,892 10,577,589 1,497,160revenues Cost of (2,499,048) (3,008,678) (3,769,095) (533,481) (4,301,268) (6,777,773) (959,332)revenues^(2) Gross profit 1,785,738 1,728,819 2,070,997 293,130 3,132,624 3,799,816 537,828 Operating expenses^(2)Research anddevelopment (550,010) (566,164) (693,458) (98,153) (864,702) (1,259,622) (178,288)expensesSales andmarketing (979,902) (932,264) (909,825) (128,777) (1,435,974) (1,842,089) (260,731)expensesGeneral andadministrative (261,645) (198,136) (412,714) (58,416) (452,258) (610,850) (86,460)expenses Total operating (1,791,557) (1,696,564) (2,015,997) (285,346) (2,752,934) (3,712,561) (525,479)expenses Other income 10,075 20,810 40,243 5,696 69,899 61,053 8,641 Operating 4,256 53,065 95,243 13,480 449,589 148,308 20,990income Interest (12,268) (124,515) (131,656) (18,635) (18,487) (256,171) (36,259)expensesInterest incomeand investment 81,598 114,393 162,519 23,003 175,302 276,912 39,194incomeForeigncurrency 13,014 (11,979) 3,246 459 14,721 (8,733) (1,236)exchange gains(losses), netGain (loss) ondeemed disposal - 108,903 (13,444) (1,903) - 95,459 13,511and disposal ofinvestmentsGain on fairvalue change of 14,291 333,794 708,633 100,300 2,664,134 1,042,427 147,546investmentsFair valuechange on - 10,346 2,174 308 - 12,520 1,772derivativesOthernon-operating - (12,000) (4,257) (603) - (16,257) (2,301)expenses Income beforeincome tax 100,891 472,007 822,458 116,409 3,285,259 1,294,465 183,217expenses Income tax (122,264) (144,456) (187,246) (26,503) (227,267) (331,702) (46,949)expenses (Loss) incomebefore share ofincome (loss)in equity (21,373) 327,551 635,212 89,906 3,057,992 962,763 136,268methodinvestments,net of incometaxes Share of income(loss) inequity method 6,991 (12,091) (23,544) (3,332) 14,148 (35,635) (5,044)investments,net of incometaxes Net(loss)income from (14,382) 315,460 611,668 86,574 3,072,140 927,128 131,224continuingoperations Net income fromdiscontinued 121,801 171,226 6,343,255 897,830 185,261 6,514,481 922,065operations^(3) Net income 107,419 486,686 6,954,923 984,404 3,257,401 7,441,609 1,053,289 Less: Netincome (loss)attributable tothenon-controllinginterestshareholders 65,342 100,021 (43,062) (6,095) 94,891 56,959 8,062and themezzanineequityclassified asnon-controllinginterestshareholders Net incomeattributable tocontrolling 42,077 386,665 6,997,985 990,499 3,162,510 7,384,650 1,045,227interest ofJOYY Inc. Including: Net (loss)income fromcontinuingoperations (6,140) 320,138 619,426 87,674 3,086,265 939,564 132,987attributable tocontrollinginterest ofJOYY Inc.Net income fromdiscontinuedoperationsattributable to 48,217 66,527 6,378,559 902,825 76,245 6,445,086 912,240controllinginterest ofJOYY Inc. Less: Accretionofsubsidiaries?redeemableconvertible 9,476 9,705 9,865 1,396 18,841 19,570 2,770preferredshares toredemptionvalueCumulativedividend onsubsidiary?s 6,811 6,975 7,090 1,004 13,541 14,065 1,991Series APreferredShares Net incomeattributable tocommon 25,790 369,985 6,981,030 988,099 3,130,128 7,351,015 1,040,466shareholders ofJOYY Inc. Including: Net (loss)income fromcontinuingoperations (22,427) 303,458 602,471 85,274 3,053,883 905,929 128,226attributable tocommonshareholders ofJOYY Inc.Net income fromdiscontinuedoperationsattributable to 48,217 66,527 6,378,559 902,825 76,245 6,445,086 912,240commonshareholders 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 Six Months Ended June March June June June June June 30, 31, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Net income(loss) per ADS?Basic 0.32 4.63 87.69 12.41 42.06 92.12 13.04 Continuing (0.28) 3.79 7.57 1.07 41.04 11.35 1.61operations

Discontinued 0.60 0.84 80.12 11.34 1.02 80.77 11.43operations?Diluted 0.28 4.49 85.68 12.13 41.31 90.20 12.76 Continuing (0.28) 3.73 7.39 1.05 40.38 11.12 1.57operations

Discontinued 0.56 0.76 78.29 11.08 0.93 79.08 11.19operations Weightedaveragenumber ofADS used in calculatingnet income(loss) perADS?Basic 79,682,966 79,980,844 79,609,517 79,609,517 74,418,556 79,795,181 79,795,181?Diluted 79,682,966 81,410,241 81,477,788 81,477,788 75,764,380 81,446,128 81,446,128

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

Three Months Ended Six Months Ended June March June June June June June 30, 31, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ PRC 3,108,244 2,819,599 2,965,737 419,773 5,748,282 5,785,336 818,861Non-PRC 893,032 1,662,162 2,642,011 373,952 1,185,532 4,304,173 609,216

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

Three Months Ended Six Months Ended June March June June June June June 30, 31, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Cost of 11,334 11,649 9,637 1,364 21,623 21,286 3,013revenuesResearch anddevelopment 146,098 88,000 92,465 13,088 204,881 180,465 25,542expensesSales andmarketing 2,545 1,915 2,024 286 3,617 3,939 558expensesGeneral andadministrative 55,696 45,202 91,019 12,883 99,495 136,221 19,281expenses

(3) Gain from the disposal and deconsolidation amounted to around RMB6.4 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 Six Months Ended June March June June June June June 30, 31, 30, 30, 30, 30, 30, 2019 2020 2020 2020 2019 2020 2020 RMB RMB RMB US$ RMB RMB US$ Operating 4,256 53,065 95,243 13,480 449,589 148,308 20,990incomeShare-basedcompensation 215,673 146,766 195,145 27,621 329,616 341,911 48,394expensesImpairmentof goodwill - - 43,861 6,208 - 43,861 6,208andinvestmentsAmortizationofintangible 188,740 186,189 175,043 24,776 250,740 361,232 51,129assets frombusinessacquisitions Non-GAAPoperating 408,669 386,020 509,292 72,085 1,029,945 895,312 126,721income

Net (loss)income from (14,382) 315,460 611,668 86,574 3,072,140 927,128 131,224continuingoperationsShare-basedcompensation 215,673 146,766 195,145 27,621 329,616 341,911 48,394expensesImpairmentof goodwill - - 43,861 6,208 - 43,861 6,208andinvestmentsAmortizationofintangible 188,740 186,189 175,043 24,776 250,740 361,232 51,129assets frombusinessacquisitions(Gain) losson deemeddisposal and - (108,903) 13,444 1,903 - (95,459) (13,511)disposal ofinvestmentsGain on fairvalue changeof (14,291) (333,794) (708,633) (100,300) (2,664,134) (1,042,427) (147,546)investments^(1)Reconcilingitems on theshare ofequity 959 2,433 8,805 1,246 (4,536) 11,238 1,591methodinvestments^(1)Fair valuechange on - (10,346) (2,174) (308) - (12,520) (1,772)derivative Interestexpensesrelated totheconvertible 4,287 102,242 106,908 15,132 4,287 209,150 29,603bonds?amortizationto facevalue Income taxeffects on (31,891) 20,555 42,452 6,009 (48,887) 63,007 8,918non-GAAPadjustments Non-GAAP netincome from 349,095 320,602 486,519 68,861 939,226 807,121 114,238continuingoperations

Net (loss)income fromcontinuingoperations (22,427) 303,458 602,471 85,274 3,053,883 905,929 128,226attributable tocommonshareholders ofJOYY Inc.Share-basedcompensation 215,673 146,766 195,145 27,621 329,616 341,911 48,394expensesImpairment ofgoodwill and - - 43,861 6,208 - 43,861 6,208investmentsAmortization ofintangibleassets from 188,740 186,189 175,043 24,776 250,740 361,232 51,129businessacquisitions(Gain) loss ondeemed disposal - (108,903) 13,444 1,903 - (95,459) (13,511)and disposal ofinvestmentsGain on fairvalue change of (14,291) (333,794) (708,633) (100,300) (2,664,134) (1,042,427) (147,546)investmentsReconcilingitems on theshare of equity 959 2,433 8,805 1,246 (4,536) 11,238 1,591methodinvestmentsFair valuechange on - (10,346) (2,174) (308) - (12,520) (1,772)derivativeInterestexpensesrelated to theconvertible 4,287 102,242 106,908 15,132 4,287 209,150 29,603bonds?amortization toface valueAccretion,cumulativedividend anddeemed dividend 16,287 16,680 16,955 2,400 32,382 33,635 4,761tosubsidiaries?preferredshareholdersIncome taxeffects on (31,891) 20,555 42,452 6,009 (48,887) 63,007 8,918non-GAAPadjustments Non-GAAPadjustments fornet income(loss)attributable to (342) 1,276 (688) (97) (819) 588 83thenon-controllinginterestshareholders Non-GAAP netincome fromcontinuingoperationsattributable to 356,995 326,556 493,589 69,864 952,532 820,145 116,084controllinginterest andcommonshareholders ofJOYY Inc.

Non-GAAPnet incomefrom continuingoperationsper ADS?Basic 4.48 4.08 6.20 0.88 12.80 10.28 1.46?Diluted 4.38 3.76 5.57 0.79 12.59 9.33 1.32Weightedaveragenumber ofADS used incalculatingNon-GAAP net incomefromcontinuingoperationsper ADS?Basic 79,682,966 79,980,844 79,609,517 79,609,517 74,418,556 79,795,181 79,795,181?Diluted 81,855,180 91,837,341 91,904,888 91,904,888 75,764,380 91,873,228 91,873,228

Gain (loss) 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 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 - 5,840,092 826,611revenues 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)expenses General 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 13,480income (loss) Othernon-operating - (4,257) - (4,257) (603)expenses Interest (126,282) (14,231) 8,857 (131,656) (18,635)expenses Interestincome and 171,299 77 (8,857) 162,519 23,003investmentincome Foreigncurrency 2,839 407 - 3,246 459exchangegains, net Fair valuechange on 2,174 - - 2,174 308derivatives Loss on deemeddisposal and (13,444) - - (13,444) (1,903)disposal ofinvestments Gain on fairvalue change 708,633 - - 708,633 100,300of investments

Income (loss) before 1,221,338 (398,880) - 822,458 116,409income tax expenses Income tax (expenses) (203,468) 16,222 - (187,246) (26,503)benefits Income (loss) beforeshare of loss inequity method 1,017,870 (382,658) - 635,212 89,906investments, net ofincome taxes Share of loss inequity method (23,544) - - (23,544) (3,332)investments, net ofincome taxes Net income (loss) from 994,326 (382,658) - 611,668 86,574continuing operations

(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 expenses 26,528 65,937 92,465 13,088Sales and marketing expenses 816 1,208 2,024 286General and administrative expenses 53,199 37,820 91,019 12,883

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

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

Three Months Ended March 31, 2020 YY Bigo Elimination Total Total ^(1) RMB RMB RMB RMB US$ Net revenues Live streaming 2,509,431 1,972,330 - 4,481,761 632,946 Others 121,141 134,595 - 255,736 36,117 Total net 2,630,572 2,106,925 - 4,737,497 669,063revenues Cost of (1,540,085) (1,468,593) - (3,008,678) (424,907)revenues^(2) Gross profit 1,090,487 638,332 - 1,728,819 244,156 Operating expenses^(2)Research anddevelopment (269,811) (296,353) - (566,164) (79,958)expensesSales andmarketing (258,994) (673,270) - (932,264) (131,661)expenses General andadministrative (114,940) (83,196) - (198,136) (27,982)expenses Totaloperating (643,745) (1,052,819) - (1,696,564) (239,601)expenses Other income 14,710 6,100 - 20,810 2,939 Operating 461,452 (408,387) - 53,065 7,494income (loss) Othernon-operating (10,000) (2,000) - (12,000) (1,695)expenses Interest (122,238) (16,050) 13,773 (124,515) (17,585)expenses Interestincome and 127,592 574 (13,773) 114,393 16,155investmentincome Foreigncurrency (5,436) (6,543) - (11,979) (1,692)exchangelosses, net Fair valuechange on 10,346 - - 10,346 1,461derivative Gain on deemeddisposal and 108,903 - - 108,903 15,380disposal ofinvestments Gain on fairvalue change 333,794 - - 333,794 47,141of investments

Income (loss) before 904,413 (432,406) - 472,007 66,659income tax expenses Income tax (expenses) (163,393) 18,937 - (144,456) (20,401)benefits Income (loss) beforeshare of loss inequity method 741,020 (413,469) - 327,551 46,258investments, net ofincome taxes Share of loss inequity method (12,091) - - (12,091) (1,708)investments, net ofincome taxes Net income (loss) from 728,929 (413,469) - 315,460 44,550continuing operations

(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 March 31, 2020 YY Bigo Total Total RMB RMB RMB US$ Cost of revenues 2,732 8,917 11,649 1,645Research and development expenses 20,398 67,602 88,000 12,428Sales and marketing expenses 793 1,122 1,915 270General and administrative expenses 36,768 8,434 45,202 6,384

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 March 31, 2020 YY Bigo Total Total RMB RMB RMB US$ Operating income (loss) 461,452 (408,387) 53,065 7,494Share-based compensation 60,691 86,075 146,766 20,727expensesAmortization of intangibleassets from business - 186,189 186,189 26,295acquisitions Non-GAAP operating income (loss) 522,143 (136,123) 386,020 54,516 Net income (loss) from 728,929 (413,469) 315,460 44,550continuing operations Share-based compensation 60,691 86,075 146,766 20,727expenses Amortization of intangibleassets from business - 186,189 186,189 26,295acquisitions Gain on deemed disposal and (108,903) - (108,903) (15,380)disposal of investments Gain on fair value change of (333,794) - (333,794) (47,141)investments Reconciling items on the share 2,433 - 2,433 344of equity method investments Fair value change on derivatives (10,346) - (10,346) (1,461) Interest expenses related to theconvertible bonds? amortization 102,242 - 102,242 14,439to face value Income tax effects on non-GAAP 44,747 (24,192) 20,555 2,903adjustments Non-GAAP net income (loss) from 485,999 (165,397) 320,602 45,276continuing operations

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

Three Months Ended June 30, 2019 YY Bigo Elimination Total Total ^(1) RMB RMB RMB RMB US$ Net revenues Live streaming 2,863,058 1,138,218 - 4,001,276 582,852Others 190,758 92,752 - 283,510 41,298 Total net 3,053,816 1,230,970 - 4,284,786 624,150revenues Cost of (1,627,744) (871,304) - (2,499,048) (364,027)revenues^(2) Gross profit 1,426,072 359,666 - 1,785,738 260,123Operating expenses^(2)Research anddevelopment (241,253) (308,757) - (550,010) (80,118)expensesSales andmarketing (335,602) (644,300) - (979,902) (142,739)expensesGeneral andadministrative (171,032) (90,613) - (261,645) (38,113)expenses Totaloperating (747,887) (1,043,670) - (1,791,557) (260,970)expenses Other income 8,602 1,473 - 10,075 1,468 Operating 686,787 (682,531) - 4,256 621income (loss) Interest (12,268) (4,201) 4,201 (12,268) (1,787)expensesInterestincome and 84,791 1,008 (4,201) 81,598 11,886investmentincomeForeigncurrencyexchange (4,181) 17,195 - 13,014 1,896(losses)gains, netGain on fairvalue change 14,291 - - 14,291 2,082of investments Income (loss)before income 769,420 (668,529) - 100,891 14,698tax expenses Income tax(expenses) (160,152) 37,888 - (122,264) (17,810)benefits Income (loss)before shareof income inequity method 609,268 (630,641) - (21,373) (3,112)investments,net of incometaxes Share ofincome inequity method 6,991 - - 6,991 1,018investments,net of incometaxes Net income(loss) from 616,259 (630,641) - (14,382) (2,094)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, 2019 YY Bigo Total Total RMB RMB RMB US$ Cost of revenues 1,955 9,379 11,334 1,651Research and development expenses 28,053 118,045 146,098 21,282Sales and marketing expenses 655 1,890 2,545 371General and administrative expenses 43,189 12,507 55,696 8,113

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, 2019 YY Bigo Total Total RMB RMB RMB US$ Operating income (loss) 686,787 (682,531) 4,256 621Share-based compensation expenses 73,852 141,821 215,673 31,417 Amortization of intangible assets - 188,740 188,740 27,493from business acquisitions Non-GAAP operating income (loss) 760,639 (351,970) 408,669 59,531 Net income (loss) from continuing 616,259 (630,641) (14,382) (2,094)operations Share-based compensation expenses 73,852 141,821 215,673 31,417 Amortization of intangible assets - 188,740 188,740 27,493from business acquisitions Gain on fair value change of (14,291) - (14,291) (2,082)investments Reconciling items on the share of 959 - 959 140equity method investments Interest expenses related to theconvertible bonds? amortization to 4,287 - 4,287 624face value Income tax effects on non-GAAP 1,421 (33,312) (31,891) (4,645)adjustments Non-GAAP net income (loss) from 682,487 (333,392) 349,095 50,853continuing operations