Shulou(Shulou.com)11/24 Report--

According to the news in the morning of March 16, Beijing time, Huan Ju Group today released the company's financial results for the fourth quarter and full year of fiscal year 2022 ended December 31.

According to the report, the net income of Huan Ju Group in the fourth quarter was 604.9 million US dollars, compared with 663.7 million US dollars in the same period last year. The net loss of the continuing operating business belonging to the controlling interest of Huanju Group was 377.5 million US dollars. The net profit of the continuing operating business belonging to the controlling interest of Huanju Group in the same period last year was 7320 million US dollars. Net profit from continuing operations attributable to controlling interests and common shareholders of Huan Ju Group was $50 million in the fourth quarter, not in accordance with USA. net profit from continuing operations attributable to controlling interests and common shareholders of Huan Ju Group was $98.3 million in the same period last year.

According to data provided by Yahoo Finance Channel, the average of seven Wall Street analysts had expected Huan Ju Group's fourth-quarter revenue to reach 601.65 million US dollars. According to the financial report, Huan Ju Group's fourth-quarter net revenue was $604.9 million, exceeding analysts' expectations.

In addition, three Wall Street analysts had on average expected that Huanju Group's fourth-quarter diluted net profit per American depositary share would reach $0.24, not in accordance with GAAP. The results show that, not in accordance with general accounting standards, Huan Ju Group's fourth-quarter diluted net profit per American depositary share from continuing operations was $0.65, exceeding analysts' expectations.

According to data provided by Yahoo Finance Channel, 17 Wall Street analysts had on average expected Huanju Group's revenue to reach $2.4 billion in fiscal year 2022. According to the financial report, Huan Ju Group's net revenue for the 2022 fiscal year was $2.4115 billion, exceeding analysts' expectations.

In addition, 12 Wall Street analysts had on average expected that Huanju Group's diluted net profit per American depositary share would reach $2.20 in fiscal 2022, not in accordance with GAAP. The results showed that, not in accordance with general accounting standards, Huan Ju Group's diluted net profit per American depositary shares per American depositary share in fiscal 2022 exceeded analysts' expectations.

Financial highlight in the fourth quarter of fiscal 2022: Huan Ju Group's fourth-quarter net revenue was $604.9 million, compared with $663.7 million in the same period last year.

The fourth quarter net loss of continuing operations attributable to the holding interests of Huan Ju Group was $377.5 million, while the net profit of continuing operations attributable to the holding interests of Huan Ju Group was $73.2 million in the same period last year. This is mainly due to an impairment loss from an equity investment in the fourth quarter of fiscal 2022.

Net profit from continuing operations attributable to controlling interests and common shareholders of Huan Ju Group was $50 million in the fourth quarter, not in accordance with USA. net profit from continuing operations attributable to controlling interests and common shareholders of Huan Ju Group was $98.3 million in the same period last year.

Financial highlights of fiscal year 2022: net revenue of Huan Ju Group was $2.4115 billion in fiscal year 2022 and $2.6191 billion in fiscal year 2021.

In fiscal year 2022, the net profit from continuing operations attributable to the controlling interest of Huan Ju Group was US $128.9 million, while the net loss from continuing operations attributed to the controlling interest of Huan Ju Group in fiscal 2021 was US $115.9 million, mainly due to the increase in gross profit margin, disciplined marketing expenses and the improvement of operational efficiency at the group level.

In fiscal year 2022, net profit from continuing operations attributable to controlling interests and common shareholders of Huanju Group was $199.3 million, and in fiscal year 2021, net profit from continuing operations attributable to controlling interests and common shareholders of Huanju Group was $108.9 million.

Operating highlight in the fourth quarter of fiscal 2022: the average number of monthly mobile active users of BIGO Live grew 14.3% year-on-year to 36.8 million, compared with 32.2 million in the same period of fiscal 2021.

The average number of monthly mobile active users of Likee fell 32.4% year-on-year to 45.3 million, compared with 67 million in the same period in fiscal 2021, mainly due to reduced spending on acquisition by users through advertising.

The average number of monthly mobile active users of Hago fell 29.5% year-on-year to 6.7 million, compared with 9.5 million in the same period in fiscal 2021, mainly due to reduced spending on acquisition by users through advertising.

The global average number of monthly mobile active users fell 4.3 per cent year-on-year to 267.9 million, compared with 280 million in fiscal year 2021, mainly due to a decrease in the average number of mobile monthly active users for Likee and Hago.

The total number of paying users of BIGO (including BIGO Live, Likee and imo) grew 2.6 per cent year-on-year to 1.55 million, compared with 1.51 million in fiscal year 2021.

BIGO's average income per payer (including BIGO Live, Likee and imo) fell to $251.3, compared with $320.2 in the same period in fiscal year 2021.

Financial data for the fourth quarter of fiscal 2022: net revenue of Huan Ju Group was $604.9 million in the fourth quarter, compared with $663.7 million in the same period last year.

Huanju Group's fourth-quarter live revenue was US $527.4 million, compared with US $620.9 million in the same period of fiscal year 2021. This decline is mainly due to the decline in the average income per paying user of BIGO, due to global macroeconomic uncertainty and the negative impact of the appreciation of the US dollar against some other local currencies on users' paid activities.

Other revenue of Huan Ju Group in the fourth quarter was $77.5 million, up 80.9% from $42.8 million in the same period in fiscal year 2021.

Revenue cost and gross profit Happy Group's revenue cost in the fourth quarter was $392.6 million, down 10.8 per cent from $440.2 million in the same period in fiscal 2021. Revenue in the fourth quarter was divided into expense and content costs of $247.5 million, compared with $297.3 million in the same period last year.

Huan Ju Group's fourth-quarter gross profit was $212.3 million, compared with $223.5 million in the same period in fiscal 2021. The gross profit margin of Huan Ju Group in the fourth quarter was 35.1%, compared with 33.7% in the same period last year, an increase over the same period last year, mainly due to the optimization of revenue-sharing expenses and other operating costs.

Operating profit Huan Ju Group's operating expenses were $231.2 million in the fourth quarter, compared with $168.2 million in the same period in fiscal 2021. Among operating expenses, sales and marketing expenses fell to $100.8 million, compared with $112.6 million in the same period in fiscal 2021, mainly due to a decline in the company's spending on acquiring users for Likee and Hago through advertising. Research and development spending increased to $73.6 million in the fourth quarter, compared with $29.3 million in the same period in fiscal 2021, mainly due to increased personnel-related spending at BIGO and the recent consolidation of an investor.

Huan Ju Group posted an operating loss of US $14.2 million in the fourth quarter and an operating profit of US $60.6 million in the same period of fiscal 2021. The operating loss rate of Huanju Group in the fourth quarter was 2.3%. The operating profit margin of the same period in the 2021 fiscal year was 9.1%.

The operating profit of Huanju Group in the fourth quarter was US $27.8 million, compared with US $83.5 million in the same period of fiscal 2021. The operating profit margin of Huanju Group in the fourth quarter that did not comply with US General Accounting Standards was 4.6%. In the same period of fiscal year 2021, the operating profit margin that did not comply with US General Accounting Standards was 12.6%.

Net profit / net loss net loss of continuing operations attributable to controlling interests of Huan Ju Group was $377.5 million in the fourth quarter, compared with net profit of $73.2 million of continuing operations attributable to controlling interests of Huan Ju Group in the same period last year, mainly due to an impairment loss of $417.2 million from an equity investment in the fourth quarter of fiscal 2022.

Net profit from continuing operations attributable to controlling interests and common shareholders of Huan Ju Group was $50 million in the fourth quarter, not in accordance with USA. net profit from continuing operations attributable to controlling interests and common shareholders of Huan Ju Group was $98.3 million in the same period last year. Not in accordance with US GAAP, Huan Ju Group's net profit margin in the fourth quarter was 8.3%. In the same period of fiscal year 2021, the net profit margin that did not comply with US GAAP was 14.8%.

Net profit / net loss per American Depositary share ("ADS") the Group's fourth quarter diluted net loss per American depositary share from continuing operations was $5.38, compared with a diluted net profit per American depositary share of $0.85 for the same period in fiscal year 2021.

Not in accordance with American general accounting standards, Huan Ju Group's diluted net profit per American depositary share from continuing operations was $0.65 in the fourth quarter and $1.15 per American depositary share not in accordance with American general accounting standards in the same period of fiscal 2021.

Balance sheet and cash flow as of December 31, 2022, the company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of RMB 4.2887 billion. The net cash from business operation activities of Huan Ju Group in the fourth quarter was US $75.6 million.

Outstanding shares as of December 31, 2022, a total of 1.3927 billion of the company's common shares were outstanding, equivalent to 69.6 million of outstanding American depositary shares.

Financial data for the whole year 2022: net revenue of Huan Ju Group was $2.4115 billion in fiscal year 2022 and $2.6191 billion in fiscal year 2021.

Huan Ju Group posted an operating profit of US $50.7 million in fiscal 2022 and an operating loss of US $106.7 million in fiscal 2021. The operating profit margin of Huanju Group in fiscal year 2022 was 2.1%. The operating loss rate in fiscal year 2021 was 4.1%.

Not in accordance with US GAAP, the operating profit of Huan Ju Group in fiscal year 2022 was US $164 million, and that in fiscal year 2021 was US $72.1 million, an increase of 127.3% over the same period last year. Not in accordance with US GAAP, Huan Ju Group's operating profit margin in fiscal year 2022 was 6.8%. In fiscal year 2021, the operating profit margin that did not comply with US GAAP was 2.8%.

In fiscal year 2022, the net profit from continuing operations attributable to the controlling interest of Huanju Group was US $128.9 million, while the net loss from continuing operations attributable to the controlling interest of Huan Ju Group in fiscal year 2021 was US $115.9 million. Huan Ju Group's net profit margin in fiscal year 2022 was 5.3%. The net loss rate in fiscal year 2021 was 4.4%.

In fiscal year 2022, net profit from continuing operations attributable to controlling interests and common shareholders of Huanju Group was US $199.3 million, and in fiscal year 2021, net profit from continuing operations attributed to controlling interests and common shareholders of Huan Ju Group was US $108.9 million, an increase of 83.0% year on year. Not in accordance with US GAAP, Huan Ju Group had a net profit margin of 8.3% in fiscal year 2022 and 4.2% in fiscal year 2021.

The diluted net profit per American depositary share in the continuing operation of Huanju Group in fiscal 2022 was $1.59 and the net diluted loss per American depositary share in the continuing operation in fiscal year 2021 was $1.60. Not in accordance with GAAP, Huan Ju Group's diluted net profit per American depositary share in its continuing operations in fiscal 2022 was $2.54, compared with $1.32 in fiscal 2021.

The company's outlook for the future: for the first quarter of fiscal 2023, the company expects net revenue of between $552 million and $570 million, falling short of analysts' expectations. This forecast reflects the company's current and preliminary views on the state of the market and operations, which are likely to change, especially given the possible impact of increased macroeconomic uncertainty.

According to data provided by Yahoo Finance Channel, three Wall Street analysts had on average expected revenue of $577.48 million in the first quarter of fiscal 2023.

Quarterly dividend: the company's board of directors approved the quarterly dividend policy in 2020, taking the policies adopted on August 11, 2020 and November 16, 2020 as a whole, and implementing the policy for a period of three years from the fourth quarter of 2020. In accordance with the quarterly dividend policy, the company's board of directors declared a dividend of 51 cents per American depositary share or $0.0255 per common share for the fourth quarter of 2022, which is expected to be paid on April 28, 2023 to shareholders of record at the close of trading on April 13, 2023. The date excluding the dividend is April 12, 2023. In accordance with this policy, the Board of Directors of the Company reserves the discretion to make dividends and the amount of dividends in any given quarter on the basis of the Company's operations and profits, cash flow, financial position and other relevant factors.

Recent development: share buyback plan

In November 2021, Huan Ju Group announced that its board of directors had approved an additional share buyback plan. Under the plan, the company can buy back up to $1 billion of shares between November 2021 and November 2022. In November 2022, the company's board of directors authorized the continued use of the unused quota under the 2021 share repurchase program, which was then $800 million for a further 12 months from the end of November 2022. In the fourth quarter of 2022, the company bought back $31.8 million of shares, bringing the cumulative repurchase amount for the whole of 2022 to approximately $138.1 million. As of December 31, 2022, Huan Ju Group had repurchased approximately $173.8 million of shares under the revised 2021 share repurchase plan.

Share price changes: on the day, Huan Ju Group shares fell 40 U.S. dollars, or 1.46 percent, to close at 27.07 U.S. dollars in regular Nasdaq trading. In after-hours trading as of 07:36 EDT on the 15th (07:36 Beijing time on the 16th), Huanju Group shares rose 93 cents, or 3.44 percent, to $28.00. In the past 52 weeks, the highest price of Huan Ju Group is $47.23 and the lowest price is $21.38.

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