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2020 annual revenue of 13.2 billion yuan, up 112% year on year From Huanju group

The following is the 2020 annual revenue of 13.2 billion yuan, up 112% year on year From Huanju group recommended by recordtrend.com. And this article belongs to the classification: Enterprise financial report, Investment & Economy, social networks, Network entertainment.

On March 26, 2021, the global video social media platform huanju times group today released its unaudited financial report for the fourth quarter and the whole year of 2020. In 2020, the annual revenue of huanju group was 13.2 billion yuan, a year-on-year increase of 112%; the fourth quarter revenue was 3.783.5 billion yuan, a year-on-year increase of 77.5%. The global mobile monthly active users were 393.7 million, down 7.1% year on year, mainly due to the Indian government’s blocking of some Chinese applications. (as Huya and YY live broadcasting have been listed as non going concern by the group, the financial data in this report do not include Huya and YY live broadcasting.)

Financial Highlights in the fourth quarter of 2020

Net income increased by 77.5% year-on-year to 3.783.5 billion yuan (579.9 million US dollars), compared with 2.131.9 billion yuan in the same period of 2019.

The net loss from continuing operations attributable to the controlling interest of huanju group was RMB 791.9 million (US $121.4 million), up from RMB 816.6 million in the same period of 2019, mainly due to the narrowing of the operating loss of bigo.

Under non US GAAP, the net loss from continuing operations attributable to the controlling interest of huanju group decreased by 67.2% to 149.4 million yuan (US $22.9 million) on a year-on-year basis, which was mainly affected by the narrowing of the operating loss of bigo; it was 455.7 million yuan in the same period of 2019.

Financial Highlights in 2020

Net income increased by 112.1% year on year to 13.230.9 billion yuan (US $2027.7 million), compared with 6.239.3 billion yuan in the same period of 2019.

The net loss from continuing operations attributable to the controlling interest of huanju group was 105.1 million yuan (US $16.1 million), compared with 516.7 million yuan in the same period of 2019.

Under non US GAAP, the net loss from continuing operations attributable to the controlling interest of huanju group was RMB 1142.3 million (US $175.1 million), compared with RMB 1963.2 million in the same period of 2019.

Operation highlights in the fourth quarter

The average monthly active users of mobile terminals in the world decreased by 7.1% to 393.7 million year on year, mainly due to the impact of the Indian government’s blocking of some Chinese applications (including bigo live, like and Hago), which was partly offset by the increase of monthly active users outside India; it was 426.6 million in the same period of 2019.

The average monthly active mobile users of likee increased by 4.2% year on year to 120.1 million, compared with 115.3 million in the same period of 2019.

Bigo live’s average monthly mobile active users increased by 24.5% year-on-year to 28.7 million, compared with 23.1 million in the same period of 2019.

The average monthly active mobile users of Hago decreased by 49.9% year on year to 16.5 million, compared with 33 million in the same period of 2019, mainly due to the Indian government’s blocking of Chinese applications.

Mr. Li Xueling, chairman and chief executive officer of huanju, said: “in the fourth quarter, we firmly focused on the development strategy with live broadcast and short video as the dual engine, continued to promote the global layout, deepened the localized operation, steadily improved the overseas business scale and monetization ability, and achieved excellent performance in a number of products. Among them, bigo live’s revenue increased by 100.4%, like’s revenue increased by 407.5% and Hago’s revenue increased by 69.4% year on year; in terms of regional distribution, developed countries’ market and Middle East’s market also performed well. For the first time in the whole year, the revenue of bigo, the overseas business sector, exceeded that of YY live broadcast. This is the result of exploring the market potential in advance and firmly implementing the strategy in the past few years. In this quarter, we have improved the content production tools by iterating the social functions of the products, and the product experience and participation of users have been continuously improved. In 2021, we will continue to localize, deeply cultivate the community operation and content ecology of our products, continuously reduce the threshold of content production, improve the enthusiasm and activity of creators, empower creators in an all-round way, ensure abundant high-quality content supply, and promote the continuous growth of the platform. “

Mr. Jin Bing, chief financial officer of huanju, further commented: “in the fourth quarter of 2020, our net income increased by 77.5% year-on-year to 3.783.5 billion yuan, of which the operating income of bigo reached 3.389.8 billion yuan, an increase of 87.9% year-on-year, mainly driven by the live broadcast business. Due to the improvement of product monetization ability, we realized the profitability of non-U.S. GAAP operating profit of bigo for the second quarter in a row. We will continue to increase investment in the global market, continue to localize and deeply cultivate the community operation and content ecology of our products. At the same time, we will actively explore ways to give back to shareholders and create greater value for them. “

Fourth quarter financial results

net income

Net income in the fourth quarter of 2020 increased by 77.5% year-on-year to RMB 3783.5 million (US $579.9 million), compared with RMB 2131.9 million in the same period of 2019. Mainly due to the increase of bigo live broadcast revenue.

In the fourth quarter of 2020, the live broadcast revenue increased by 93.3% year-on-year to 3.5939 billion yuan (US $550.8 million). This is mainly due to the continuous growth of bigo users and the improvement of liquidity.

In the fourth quarter of 2020, other income decreased by 30.5% year-on-year to 189.6 million yuan (US $29.1 million), compared with 272.8 million yuan in the same period of 2019. Mainly due to the decline of other income.

Revenue cost and gross profit

In the fourth quarter of 2020, the cost of revenue increased by 76.6% year-on-year to RMB 2674.7 million (US $409.9 million), compared with RMB 1514.5 million in the same period of 2019. Revenue sharing fees and content costs increased from RMB 708.6 million in the same period of 2019 to RMB 1693.1 million (US $259.5 million) in the fourth quarter of 2020, mainly due to the increase in the company’s live broadcast revenue. Bandwidth cost decreased to 179.5 million yuan (US $27.5 million) from 221.8 million yuan in the same period of 2019, mainly due to the improvement of bandwidth utilization efficiency of the company. In late June 2020, the Indian government suspended the services of Indian users after blocking some Chinese applications; the growth of users in non Indian regions (resulting in increased bandwidth cost) partially offset the impact.

Gross profit in the fourth quarter of 2020 increased by 79.6% year-on-year to RMB 1108.9 million (US $169.9 million), compared with RMB 617.4 million in the same period of 2019. The gross profit margin was 29.3%, compared with 29.0% in the same period of 2019.

Operating profit

Operating expenses in the fourth quarter of 2020 were RMB 1675.2 million (US $256.7 million), compared with RMB 1576.2 million in the same period of 2019. Among them, the sales expenses increased from RMB 782 million in the same period of 2019 to RMB 973.8 million (US $149.2 million), mainly due to the company’s increased marketing investment in overseas markets. In the fourth quarter of 2020, the administrative expenses were RMB 236.3 million (US $36.2 million), compared with RMB 318.8 million in the same period of 2019. The decrease of management expenses is mainly due to the decrease of bad debt provision for receivables.

The operating loss in the fourth quarter of 2020 was RMB 557.6 million (US $85.5 million), compared with RMB 863.3 million in the same period of 2019. The operating loss rate was 14.7%, compared with 40.5% in the same period of 2019, mainly due to the narrowing of bigo’s operating loss.

In the fourth quarter of 2020, the non GAAP operating loss decreased by 60.7% year-on-year to 220.7 million yuan (US $33.8 million), compared with 561.5 million yuan in the same period of 2019. The non GAAP operating loss rate was 5.8% in the fourth quarter of 2020, compared with 26.3% in the same period of 2019.

Net profit

In the fourth quarter of 2020, the net loss of going concern attributable to the controlling interest of huanju group was RMB 791.9 million (US $121.4 million), compared with RMB 816.6 million in the same period of 2019. The net loss rate was 20.9%, compared with 38.3% in the same period of 2019, mainly due to the narrowing of bigo’s operating loss.

Under non US GAAP, the net loss from continuing operations attributable to the controlling interests and common shareholders of huanju group was RMB 149.4 million (US $22.9 million) in the fourth quarter of 2020, compared with RMB 455.7 million in the same period of 2019. The net loss rate under non US GAAP was 3.9%, compared with 21.4% in the same period of 2019.

Net earnings per ads

In the fourth quarter of 2020, the net loss from going concern per American Depository Share was 10.07 yuan (diluted) ($1.54), compared with 10.43 yuan in the same period of 2019.

Under non US GAAP, the net loss from going concern per ADSS in the fourth quarter of 2020 was RMB 1.86 (diluted) ($0.29), compared with RMB 5.70 in the same period of 2019.

Balance sheet and cash

As of December 31, 2020, the company has cash and cash equivalents, restricted cash and cash equivalents, restricted short-term deposits and short-term deposits and short-term investments of RMB 25.303.6 billion (US $3.602.1 billion).

Circulating shares

As of December 31, 2020, the company has a total of 1598.9 million shares of common stock in circulation, equivalent to 79.9 million shares of American Depository shares (ads).

Financial performance in 2020

In 2020, net income increased by 112.1% year-on-year to RMB 13230.9 billion (US $2027.7 million), compared with RMB 6239.3 million in the same period of 2019. This was mainly driven by a 135% year-on-year increase in live broadcast revenue. In 2020, the net loss of going concern attributable to the controlling interest of huanju group decreased by 79.7% year on year to 105.1 million yuan (US $16.1 million), compared with 516.7 million yuan in the same period of 2019. The net loss rate will be 0.8% in 2020 and 8.3% in the same period in 2019.

Under non US GAAP, the net loss attributable to the controlling interest of huanju group was RMB 1142.3 million (US $175.1 million) in 2020 and RMB 1963.2 million in the same period of 2019. Under non US general rules, the net loss rate is 8.6% in 2020, compared with 31.5% in the same period in 2019.

In 2020, the net loss per ads going concern decreased by 71.6% year-on-year to 2.14 yuan (diluted) ($0.33), compared with 7.54 yuan in 2019. Under non US GAAP, the net loss per ads going concern in 2020 was 14.28 yuan (diluted) (US $2.19) and in 2019 was 25.42 yuan.

The company’s outlook for the future

In the first quarter of 2021, the company expects net income to be between us $590 million and US $605 million, up 72.5% to 76.9% year on year. The forecast does not include the revenue of Huya and YY live broadcast. The forecast is based on the impact of the outbreak of covid-19, which indirectly reflects the company’s current preliminary consideration of the market and operating conditions. This forecast may change due to the potential impact of the cowid-19 epidemic on the global economy and users’ ability to pay.

Quarterly dividend

On August 11, 2020, the board of directors of the company approved the quarterly dividend policy for the next three years starting from the third quarter of 2020. In addition to the quarterly dividend policy adopted on November 16, 2020, according to the resolution of the board of directors, the dividend for the fourth quarter of 2020 is US $0.51 per American Depository Receipt (US $0.0225 per common share), which is expected to be issued on April 30, 2021 to April 19, 2021 At the end of the business, the registered shareholders shall distribute the shares. The ex right and ex dividend date is April 20, 2021. According to the policy, the board of directors of the company has the right to determine the distribution and amount of dividends in any specific quarter based on the company’s operation and profitability, cash flow, financial status and other relevant factors.

Recent developments

Due to personal career planning, Jin Bing, the company’s chief financial officer, will leave the post of chief financial officer at the end of April 2021. Jinbing joined huanju group as CFO in 2017 and made significant contributions to the company’s business, finance and corporate governance. The company would like to thank Jin Bing for his contribution and wish him all the best in the future. Jin Bing has agreed to continue to serve as the consultant of the company to assist in the completion of the handover work until April 2022. The company has started to look for new successors, and Jin Bing will actively participate in the whole selection process.

Results of independent review

As stated in the announcement issued by the company on February 8, 2021, in response to the short report issued on November 18, 2020, the audit committee of the company initiated an independent investigation on the allegation of muddy water report. With the assistance of third-party law firms, audit and professional data analysis institutions, the company’s audit committee has previously formed an investigation conclusion on YY live business, and the accusations and conclusions related to YY live business in the short report have not been confirmed. At present, the investigation conclusions of the Audit Committee against the other accusations (around bigo business) mentioned in the report (except YY live business) have also been formed, and the relevant accusations and conclusions in this part of the short report have not been confirmed. So far, the independent investigation of the audit committee has been completed, and there is no negative conclusion.

Share repurchase plan

In May 2020, the company announced that its board of directors had authorized to extend the share repurchase plan approved in August 2019 for another 12 months. Under the plan, the company can buy back no more than $300 million of shares between August 2019 and August 2021. As of December 31, 2020, the company has repurchased about US $139.5 million of shares.

Huanju group: 1q20 revenue 7.15 billion yuan, a year-on-year increase of 49.6% huanju group: 1q20 earnings teleconference record revenue profit will continue to grow short video business has no major competitor overseas Blue City brothers: 2q20 revenue 247.4 million yuan A 32.2% year-on-year growth two financial reports three points of information to see the new changes in the overseas dating market In the fourth quarter, overseas business and revenue maintained a high growth. Huya: 1q20 financial report teleconference minutes will launch e-commerce live broadcasting business. Overseas business models such as subscription and advertising will be tried. Betta: 3q20 revenue 2.546.5 billion yuan, a year-on-year increase of 37%. Huya: 3q20 net profit 37.3 million US dollars, a year-on-year increase of 105.3%. Happy Times: 3q19 financial report teleconference record Li Xueling said that next year we will focus on making short videos CNNIC: the supervision of live webcast is becoming more and more perfect, encouraging the creation of high-quality content to become the focus of development Nielsen: Video 360 degree report of 2017 family entertainment

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