JOYY Inc (YY) 2022 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to JOYY Inc.'s First Quarter 2022 Earnings Call. (Operator Instructions). I'd now like to hand the conference over to your host today, Jane Xie, the company's Senior Manager of Investor Relations. Please go ahead, Jane.

女士們，先生們，感謝您的支持，歡迎來到 JOYY Inc. 的 2022 年第一季度財報電話會議。 （操作員說明）。我現在想把今天的會議交給你們的主持人，公司投資者關係高級經理謝簡。請繼續，簡。

Thank you, operator. Hello, everyone. Welcome to JOYY's First Quarter 2022 Earnings Conference Call. Joining us today are Mr. David Xueling Li, Chairman and CEO of JOYY; Ms. Ting Li, our COO; and Mr. Alex Leo, the General Manager of Finance.

謝謝你，接線員。大家好。歡迎參加 JOYY 2022 年第一季度收益電話會議。今天加入我們的是JOYY董事長兼CEO李學凌先生；我們的首席運營官李婷女士；和財務總經理 Alex Leo 先生。

For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcast of this conference call are available at ir.joyy.com. A replay of this call will also be available on our website in a few hours.

對於今天的電話會議，管理層將首先提供季度回顧，然後我們將進行問答環節。本次電話會議的財務結果和網絡廣播可在 ir.joyy.com 獲得。幾個小時後，我們的網站上也將提供此電話的重播。

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the SEC.

在我們繼續之前，我想提醒您，我們可能會做出前瞻性陳述，這些陳述本身就存在風險和不確定性，可能導致實際結果與我們當前的預期不同。有關風險和不確定性的詳細討論，請參閱我們提交給美國證券交易委員會的表格 20-F 和其他文件的最新年度報告。

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in U.S. dollars.

最後，請注意，除非另有說明，本次電話會議中提到的所有數字均以美元為單位。

I will now turn the call over to our Chairman and CEO, Mr. David Xueling Li. Please go ahead, sir.

我現在將把電話轉給我們的董事長兼首席執行官李學玲先生。請繼續，先生。

Hello, everyone. Welcome to our first quarter 2022 earnings call. Let me start the call with an overview of our first quarter results in line with our previous expectations as various parts of the world started to emerge from a pandemic restrictions, a combination of force, including macroeconomic weakness, seasonality and unfavorable foreign exchange impact contributed to a drag on our top line growth during the first quarter.

大家好。歡迎來到我們的 2022 年第一季度財報電話會議。讓我首先概述我們的第一季度業績，這與我們之前的預期相符，因為世界各地開始擺脫大流行的限制，包括宏觀經濟疲軟、季節性和不利的外匯影響在內的多種力量共同促成了拖累我們第一季度的收入增長。

For the first quarter of 2022, our group's total revenue was $623.8 million, decreasing by 3% year-over-year. Among which, BIGO's revenue was $534.6 million decreasing by 8% year-over-year. However, our global business has demonstrated resilience despite the challenging market environment and weak seasonality. Such resilience is mainly attributable to our sustainable growth model and further improvement to our operating efficiency. When compared to prior year period, we achieved a steady improvement in profitability during the first quarter of 2022.

2022年第一季度，集團總收入為6.238億美元，同比下降3%。其中，BIGO的收入為5.346億美元，同比下降8%。然而，儘管市場環境充滿挑戰和季節性疲軟，我們的全球業務仍表現出韌性。這種韌性主要歸功於我們的可持續增長模式和進一步提高我們的運營效率。與去年同期相比，我們在 2022 年第一季度實現了盈利能力的穩步提升。

Excluding YY Live, we recorded a non-GAAP net profit of $20.9 million and expanded our non-GAAP net margin to 3.3% compared to a non-GAAP net loss margin of 3.7% in the prior year period. BIGO's non-GAAP net profit grew to $59.9 million, while its non-GAAP net margin improved to 11.2%. In addition, our operation cash flow remained healthy and reached positive $59.2 million in the first quarter.

不包括 YY Live，我們錄得 2090 萬美元的非 GAAP 淨利潤，並將我們的非 GAAP 淨利潤率擴大到 3.3%，而去年同期的非 GAAP 淨虧損率為 3.7%。 BIGO 的非 GAAP 淨利潤增長至 5990 萬美元，而非 GAAP 淨利潤率提高至 11.2%。此外，我們的運營現金流保持健康，第一季度達到正值 5920 萬美元。

I talked the last quarter about some of the increasing macro complexities facing our business. As a global company with worldwide operations, we are not new to international microeconomic volatilities. During the initial outbreak of COVID-19 from early 2020 to mid-2021, we experienced an acceleration in business growth as the online social entertainment industry in general, enjoyed a greater user engagement and activities amidst lockdowns. However, as the world implied into the post-pandemic era, the long-term effect of COVID lingered and the global economy suffered from pandemic growth recovery and significant inflationary pressures.

我在上個季度談到了我們業務面臨的一些日益增加的宏觀複雜性。作為一家在全球開展業務的全球性公司，我們對國際微觀經濟波動並不陌生。在 2020 年初至 2021 年年中 COVID-19 最初爆發期間，我們經歷了業務增長的加速，因為整個在線社交娛樂行業在封鎖期間享有更大的用戶參與度和活動。然而，隨著世界進入後大流行時代，新冠病毒的長期影響揮之不去，全球經濟遭受大流行的增長復甦和巨大的通脹壓力。

These adverse macro trends damped the global consumers' confidence, reduced their spending power and posed challenges for our business growth in the short run. However, from a medium- and long-term perspective, global users diversified individual demand of social entertainment remains high and the long-term trend of transitioning social entertainment activities from offline to online is still irradicable.

這些不利的宏觀趨勢打擊了全球消費者的信心，降低了他們的購買力，並在短期內對我們的業務增長構成挑戰。但從中長期來看，全球用戶對社交娛樂多元化的個性化需求依然高企，社交娛樂活動由線下向線上轉變的長期趨勢仍難以根除。

As we look further into our key operational regions include North America, Europe, Pacific East, the Middle East and South Asia, our product penetration rate is still relatively low, which creates substantial headroom for us for further penetrate the market.

隨著我們進一步深入北美、歐洲、太平洋東部、中東和南亞等主要運營區域，我們的產品滲透率仍然相對較低，這為我們進一步滲透市場創造了巨大的空間。

On top of that, I want to share some thoughts on our operating philosophy. First, we remain committed to our globalization through localization strategy, which has been vital to the rapid growth in our global business over the past periods. Globalization and diversification help us minimize our single region exposure, cautioning the blow from cyclical fluctuations in certain regions. We will further localize our operation team by recruiting professionals with international background to drive our content localization innovation and integration.

最重要的是，我想分享一些關於我們的經營理念的想法。首先，我們通過本地化戰略繼續致力於全球化，這對我們過去一段時間全球業務的快速增長至關重要。全球化和多元化有助於我們最大限度地減少單一地區的風險敞口，避免某些地區的周期性波動帶來的打擊。我們將通過招聘具有國際背景的專業人才來進一步本地化我們的運營團隊，以推動我們的內容本地化創新和整合。

Second, we will grow our user community by offering diverse social entertainment services with rich local and premium content offerings. At the same time, by continuously upgrading our products and the user interface and (inaudible) innovation, we seek to further optimize the immersing into space, the social networking experience of our users. With our rich and diverse content -- efficiency content recommendation engine and products that better neutral users social networking needs, we should be able to further expand our product reach and ultimately fuel our monetization growth.

其次，我們將通過提供豐富的本地和優質內容提供多樣化的社交娛樂服務來發展我們的用戶社區。同時，通過不斷升級我們的產品和用戶界面以及（聽不清）創新，我們力求進一步優化沉浸式空間，即用戶的社交網絡體驗。憑藉我們豐富多樣的內容——高效的內容推薦引擎和更好的中立用戶社交網絡需求的產品，我們應該能夠進一步擴大我們的產品範圍並最終推動我們的貨幣化增長。

Third, we will continue to execute our sustainable OI-driven growth strategy and balance between growth and profitability in 2022. We believe that under the current market element, maintaining a strong operating cash flow is crucial to safeguard our mid- to long-term growth.

第三，我們將在 2022 年繼續執行我們的可持續 OI 驅動增長戰略，並在增長和盈利之間取得平衡。我們認為，在當前的市場因素下，保持強勁的經營現金流對於保障我們的中長期增長至關重要。 .

As a company established in 2005 and with 20 years of listing history, we have been constantly adapting to evolving marketing conditions and have achieved significant breakthroughs. We believe that with our established operation capacity, continuous iteration on our user-centric products, persistence, execution on a sustainable growth model, and striving to maintain robust cash flows, we are in a stronger position to navigate the current macroeconomic challenges and size emerging growth opportunities along the way.

作為一家成立於2005年、已有20年上市歷史的公司，我們不斷適應不斷變化的市場環境，取得了重大突破。我們相信，憑藉我們成熟的運營能力、對以用戶為中心的產品的持續迭代、對可持續增長模式的堅持和執行，以及努力保持強勁的現金流，我們在應對當前的宏觀經濟挑戰和規模不斷湧現的情況下處於更有利的地位一路走來的成長機會。

Now let me dive deeper into the progress we made in each of our product lines. Let's start with BIGO LIVE. In the first quarter, BIGO LIVE's MAU grew by 8.8% year-over-year to $31.7 million. As I have just mentioned, impacted by global economic uncertainties, seasonal weakness and multiple local currencies (inaudible) against the U.S. dollar, BIGO LIVE's live streaming revenue and the paying user in the first quarter decreased by 9.6% and 1.5% year-over-year, respectively. Geographically speaking, our operation in Europe was less affected when compared with prior year periods.

現在讓我更深入地了解我們在每個產品線中取得的進展。讓我們從 BIGO LIVE 開始。第一季度，BIGO LIVE 的 MAU 同比增長 8.8% 至 3170 萬美元。正如我剛才提到的，受全球經濟不確定性、季節性疲軟以及多種當地貨幣（聽不清）兌美元的影響，BIGO LIVE 的直播收入和付費用戶在第一季度分別下降了 9.6% 和 1.5%。年，分別。從地域上來說，與去年同期相比，我們在歐洲的業務受到的影響較小。

During the quarter, both our revenue and the number of paid users from Europe sustained their growth momentum and increased by 10.4% and 3.1% year-over-year, respectively. During the first quarter, we continued to diversify our localized premium content offerings on BIGO LIVE driving improvement in its user engagement. For example, we hosted the Europe talented campaign legal inviting streamers from various countries to produce local interactive content for European users. In Malaysia, we partnered with WeTV to offer our users exclusive access to streaming -- to stream television from (inaudible) and reality shows on BIGO LIVE. Thanks to our diversified premier content. Our user engagement improved and as evidenced by the [9.9%] and 2.1% sequentially increased in the average duration of live streaming sessions and the average viewer time spent respectively. BIGO LIVE has always been dedicated to fostering engaging and in class community, and it has been an important venue for global users to connect with others with a similar background or interest.

本季度，我們的收入和來自歐洲的付費用戶數量均保持增長勢頭，分別同比增長 10.4% 和 3.1%。在第一季度，我們繼續在 BIGO LIVE 上提供多樣化的本地化優質內容，推動其用戶參與度的提高。例如，我們舉辦了歐洲天才競選法律活動，邀請來自不同國家的主播為歐洲用戶製作本地互動內容。在馬來西亞，我們與 WeTV 合作，為我們的用戶提供流媒體的獨家訪問權限——從（聽不清）流媒體電視和 BIGO LIVE 上的真人秀節目。感謝我們多樣化的優質內容。我們的用戶參與度有所提高，直播會話的平均持續時間和觀眾花費的平均時間分別連續增加了 [9.9%] 和 2.1%。 BIGO LIVE 一直致力於培養參與性和一流的社區，它一直是全球用戶與具有相似背景或興趣的其他人聯繫的重要場所。

In March, we launched a community feature which reached its space enabling users, especially new users to establish and join different interest groups and quickly connect with like-minded people within each community. Users can interact with friends, video posts and join their live sessions, thereby significantly improving the efficiency of social interactions. Since this feature launched, various interest-based community have flourished with sense such as the (inaudible) pop dance, dining and others, thus enhanced the diversification of our user content production as well as promoting the consolidation of our realtime and non-realtime content posts.

3 月，我們推出了社區功能，讓用戶，特別是新用戶能夠建立和加入不同的興趣組，并快速與每個社區內志同道合的人建立聯繫。用戶可以與朋友互動、發布視頻並加入他們的直播會話，從而顯著提高社交互動的效率。自此功能推出以來，各種興趣社區蓬勃發展，如（聽不清）流行舞蹈、餐飲等，從而增強了我們用戶內容生產的多樣化，並促進了我們實時和非實時內容的整合帖子。

Next, let's turn to Likee. Following our proactive adjustment of Likee's marketing strategy, Likee's MAU fluctuation continued in the first quarter, and its MAU reached $61.8 million in the first quarter. Due to the proactive adjustment coupled with macro uncertainty and seasonal fluctuations, Likee's live streaming revenue declined by 11.9% year-over-year. However, it's live streaming revenue in the Middle East region turned out slightly better than in other markets, recording a year-over-year increase by 29.4%.

接下來，讓我們轉向Likee。繼我們主動調整Likee營銷策略後，Likee第一季度MAU波動持續，第一季度MAU達到6180萬美元。由於主動調整加上宏觀不確定性和季節性波動，Likee的直播收入同比下降11.9%。然而，它在中東地區的直播收入略好於其他市場，同比增長 29.4%。

Likee continued to cultivate a diversified and leveraged content community by nurturing talented creators through our comprehensive support program. In the first quarter, Likee focused on equipping creators with additional interactive tools and localized operational services. Following the introduction of Superlike and Superfollow features, we launched a pleasant voice chat feature in certain regions on Likee encouraging additional realtime and derived interactions between creators and their fans group.

Likee 通過我們全面的支持計劃培養有才華的創作者，繼續培育多元化和槓桿化的內容社區。第一季度，Likee 專注於為創作者提供額外的互動工具和本地化運營服務。隨著 Superlike 和 Superfollow 功能的推出，我們在 Likee 的某些地區推出了令人愉快的語音聊天功能，鼓勵創作者與其粉絲群之間進行更多的實時和衍生互動。

In Southern Asia during the local wedding season, Likee's local operations team launched a number of lighting-related challenges to encouraging creators to showcase traditional wedding culture feature. Local wedding objectives, makeups and ceremonies attracting million page views. Thanks to our comprehensive creators support program, the number of Likee certified creators increased by 8.4% sequentially in the first quarter.

在南亞當地的婚禮旺季，Likee的當地運營團隊發起了多項與燈光相關的挑戰，鼓勵創作者展示傳統婚禮文化特色。當地的婚禮目標、化妝和儀式吸引了數百萬的頁面瀏覽量。得益於我們全面的創作者支持計劃，Likee 認證的創作者數量在第一季度環比增長了 8.4%。

To meet users' diversified social interactions need, we also launched the [Friend] feature to allow users to create their own private community groups and exclusively share their personal content with designed -- designated growth enabling individual lives, the social experience on Likee. We believe that the Friend feature will help (inaudible) Likee users offline to online social networks and reduce their psychological barriers to produce and share their own content online.

為滿足用戶多樣化的社交需求，我們還推出了【好友】功能，讓用戶可以創建自己的私人社區群，並獨家分享自己的個人內容，設計的--指定的成長賦能個人生活，Likee上的社交體驗。我們相信朋友功能將幫助（聽不清）Likee 用戶離線到在線社交網絡，並減少他們在線製作和分享自己的內容的心理障礙。

During the first quarter, as Likee continued optimize -- optimization of its short videos and live streaming features and enhanced integration between the two, user engagement with Likee live streaming improved with average viewer time spent on live streaming growth -- growing by 45.6% and Likee's live streaming DAU penetration rate increasing by 10.9% sequentially.

第一季度，隨著 Likee 持續優化——優化其短視頻和直播功能以及加强两者之間的整合，用戶對 Likee 直播的參與度有所提高，平均觀眾花在直播上的時間增長——增長了 45.6% 和Likee 的直播 DAU 滲透率環比增長 10.9%。

Next, on HAGO. During the first quarter, HAGO maintained its monetization growth trajectory as its live streaming revenue increased by 24.2% and number of paying user grew by 40.5% year-over-year. Based on our product team's deep user insight, HAGO upgraded several product features to explore new innovations in multiplayer social interaction and further enhance user social experience.

接下來，關於HAGO。第一季度，HAGO保持盈利增長軌跡，直播收入增長24.2%，付費用戶同比增長40.5%。基於我們產品團隊對用戶的深刻洞察，HAGO升級了多項產品功能，探索多人社交的新創新，進一步提升用戶社交體驗。

This quarter, HAGO launched a new feature called HAGO Space, allowing users to create their own 3D digital Avatars and interact with another virtual 3D screens. User can engage in a variety of activities in their 3D Avatar, including voice track, (inaudible), gaming and gifting. Certainly after the new feature was launched, we reserved a positive impact on users' social activities and features channel penetration. In the following quarter, HAGO plans to further enrich users' HAGO Space experience by introducing more 3D virtual screens, virtual items and casual gifts.

本季度，HAGO 推出了一項名為 HAGO Space 的新功能，允許用戶創建自己的 3D 數字頭像並與另一個虛擬 3D 屏幕進行交互。用戶可以在他們的 3D Avatar 中進行各種活動，包括語音軌道、（聽不清）、遊戲和送禮。當然，新功能上線後，我們保留了對用戶社交活動和功能渠道滲透的積極影響。下一季度，HAGO 計劃通過引入更多 3D 虛擬屏幕、虛擬物品和休閒禮物，進一步豐富用戶的 HAGO Space 體驗。

Finally, some updates on capital return. In the first quarter, we continue to enhance return to shareholders and protect their interests through share repurchase program. In the first quarter, we bought back accumulated 80.2 million of our shares. As of March 31, we have repurchased in total 350.8 million of our shares out of the previously announced the repurchase program of USD 1.2 billion.

最後，關於資本回報的一些更新。一季度，我們通過股份回購計劃繼續提升股東回報，維護股東利益。第一季度，我們回購了累計 8020 萬股股票。截至 3 月 31 日，我們已從此前公佈的 12 億美元回購計劃中回購了 3.508 億股股票。

Taken together by capitalizing our diversified global product metrics and continuous operating efficiency improvements, our global business demonstrated resilience amidst a challenging external environment during the first quarter. We remain confident in the middle- to long-term growth prospects of the global social entertainment market. We will continue to prioritize the cultivation of our content and social ecosystems and seek to maintain a strong cash flow while saving emerging business opportunities along the way. We remain committed to delivering long-term value to our shareholders.

通過利用我們多元化的全球產品指標和持續的運營效率提升，我們的全球業務在第一季度充滿挑戰的外部環境中表現出韌性。我們對全球社交娛樂市場的中長期增長前景充滿信心。我們將繼續優先發展我們的內容和社交生態系統，並尋求保持強勁的現金流，同時在此過程中節省新興的商機。我們仍然致力於為股東創造長期價值。

This concludes my prepared remarks. I will now turn the call to our General Manager of Finance, Alex Leo for our financial updates.

我準備的發言到此結束。我現在將致電我們的財務總經理 Alex Leo 了解我們的財務更新。

Thanks, David. Hello, everyone. Now let me go through the details of our financial results. Please note the financial information and non-GAAP financial information disclosed in our earnings press release is presented on a continuing rising business, unless otherwise specifically stated.

謝謝，大衛。大家好。現在讓我詳細介紹一下我們的財務業績。請注意，除非另有明確說明，否則我們在收益新聞稿中披露的財務信息和非公認會計原則財務信息是針對持續增長的業務提出的。

As the sale of YY Live was substantially completed on February 8, 2021, with certain customary matters to be completed in the future, we have this consolidation of YY Live business since February 2021. During the first quarter of 2022, due to increased macroeconomic uncertainties, seasonality and some depreciation of certain currencies against U.S. dollar, our total net revenues for the first quarter decreased to USD 623.8 million from USD 643.1 million in the same period of 2021. In particular, our live streaming revenues for the first quarter was USD 590.1 million, and other revenues in the first quarter increased by 16.3% to USD 33.7 million.

由於 YY Live 的出售已於 2021 年 2 月 8 日基本完成，某些慣常事項將在未來完成，我們自 2021 年 2 月起整合 YY Live 業務。在 2022 年第一季度，由於宏觀經濟不確定性增加、季節性因素和某些貨幣對美元的一些貶值，我們第一季度的總淨收入從 2021 年同期的 6.431 億美元下降至 6.238 億美元。特別是，我們第一季度的直播收入為 590.1 美元億美元，第一季度其他收入增長 16.3% 至 3370 萬美元。

Cost of revenues for the first quarter decreased by 4.6% year-over-year to USD 422.6 million. Revenue selling fees and content costs was USD 279.9 million in the first quarter compared with USD 282 million in the same period of 2021. Bandwidth costs decreased to USD 20.9 million from USD 29.5 million in the same period of 2021, primarily due to the company's improved efficiency in bandwidth usage partially offset by the increased bandwidth usage as a result of continued user base expansion of BIGO LIVE.

第一季度的收入成本同比下降 4.6% 至 4.226 億美元。第一季度收入銷售費用和內容成本為 2.799 億美元，而 2021 年同期為 2.82 億美元。帶寬成本從 2021 年同期的 2950 萬美元下降至 2090 萬美元，主要是由於公司改善由於 BIGO LIVE 的用戶群持續擴大，帶寬使用的增加部分抵消了帶寬使用的效率。

Gross profit increased to USD 201.2 million in the first quarter with other gross margin improved to 32.2% from 31.1% in the same period of 2021. As we continued to enhance our operating leverage and execute a prudent marketing strategy, operating expenses for the first quarter decreased by 28.1% to $200.6 million from USD 239 million in the same period of 2021. Among the operating expenses, sales and marketing expenses decreased to USD 104.4 million from USD 137.4 million due to disciplined sales and marketing spending on certain products, including Likee and HAGO.

第一季度毛利潤增至 2.012 億美元，其他毛利率從 2021 年同期的 31.1% 提高至 32.2%。隨著我們不斷提升經營槓桿和執行審慎的營銷策略，第一季度的經營費用從 2021 年同期的 2.39 億美元下降 28.1% 至 2.006 億美元。在運營費用中，銷售和營銷費用從 1.374 億美元下降至 1.044 億美元，原因是對某些產品（包括 Likee 和哈戈。

As a result, we continued to achieve expected expenses in our GAAP and non-GAAP profitability for both BIGO segment and the entire group. Our GAAP operating income for the first quarter was USD 6.3 million compared to operating loss of USD 33 million in the same period of 2021. Operating income margin for the first quarter was 1% compared to operating loss margin of 11.4% in the same period of 2021. Our non-GAAP operating income for the first quarter, which excludes share-based compensation expenses, amortization of intangible assets from business acquisitions as well as impairment of goodwill and investments and gain on disposal of subsidiaries and business was USD 33.3 million in this quarter compared to non-GAAP operating loss of USD 29.7 million in the same period of 2021.

因此，我們繼續在 BIGO 部門和整個集團的 GAAP 和非 GAAP 盈利能力方面實現預期費用。我們第一季度的 GAAP 營業收入為 630 萬美元，而 2021 年同期的營業虧損為 3300 萬美元。第一季度的營業利潤率為 1%，而同期的營業虧損率為 11.4% 2021 年，我們第一季度的非公認會計準則營業收入為 3330 萬美元，其中不包括股權激勵費用、業務收購的無形資產攤銷以及商譽和投資減值以及處置子公司和業務的收益為 3330 萬美元2021 年同期的非公認會計準則營業虧損為 2970 萬美元。

Our non-GAAP operating income margin for the first quarter was 5.3% compared to non-GAAP operating loss margin of 4.6% in the prior year period. GAAP net loss from continuing operations attributable to controlling interest of JOYY in the first quarter of 2022 was USD 27.5 million compared to net loss of USD 87.3 million in the same period of 2021. Net loss margin was 4.4% in the first quarter of 2022 compared to net loss margin of 13.6% in the corresponding period of 2021.

我們第一季度的非 GAAP 營業利潤率為 5.3%，而去年同期的非 GAAP 營業虧損率為 4.6%。 2022年第一季度因JOYY控股權益引起的持續經營淨虧損為2750萬美元，而2021年同期淨虧損為8730萬美元。與2022年第一季度相比，淨虧損率為4.4% 2021年同期淨虧損率為13.6%。

Non-GAAP net income from continuing operations attributable to controlling interest of JOYY in the first quarter was USD 20.9 million, compared to non-GAAP net loss of USD 24.1 million in the same period of 2021. The group's non-GAAP net income margin was 3.3% in the first quarter of 2022 compared to non-GAAP net loss margin of 3.7% in the same period of 2021.

第一季度非美國通用會計準則歸屬於大悅控股控股權益的持續經營淨利潤為2090萬美元，而2021年同期非美國通用會計準則淨虧損為2410萬美元。集團的非美國通用會計準則淨利潤率為2022 年第一季度為 3.3%，而 2021 年同期非美國通用會計準則淨虧損率為 3.7%。

Notably, BIGO's non-GAAP net income expanded to $59.9 million in the first quarter with its non-GAAP net income margin improved to 11.2% from 1.6% in the prior year period. Together with our improving profitability, we have maintained a strong operating cash flow as well for the first quarter of 2022. We booked net cash inflows from operating activities of USD 59.2 million. Importantly, we have continued to enhance returns to shareholders through data and share repurchase. In accordance with our previously announced quarterly business plans approved in August and November 2020, we will be distributing a dividend of USD 0.51 per ADS for the first quarter of 2022, which is expected to be paid on July 6, 2022, to shareholders of record as of the close of business on June 23, 2022.

值得注意的是，BIGO 的非 GAAP 淨利潤在第一季度擴大到 5990 萬美元，其非 GAAP 淨利潤率從去年同期的 1.6% 提高到 11.2%。隨著盈利能力的提高，我們在 2022 年第一季度也保持了強勁的經營現金流。我們錄得來自經營活動的淨現金流入 5920 萬美元。重要的是，我們繼續通過數據和股票回購來提高股東回報。根據我們先前在 2020 年 8 月和 2020 年 11 月批准的季度業務計劃，我們將在 2022 年第一季度向登記在冊的股東分配每股 ADS 0.51 美元的股息，預計將於 2022 年 7 月 6 日支付截至 2022 年 6 月 23 日收市。

Additionally, in September and November 2021, our Board of Directors have authorized additional share repurchase plan, under which the company may repurchase up to USD 1.2 billion of its shares in total. In the first quarter, the company has repurchased an additional USD 18.2 million of its shares under these programs. As of March 31, 2022, the company had, in total, repurchased approximately USD 315.2 million of its shares under these programs. This effort demonstrates our companies in the company's long-term growth and profitability prospects. We will continue to actively utilize share repurchase to create value for our shareholders and current market conditions.

此外，在 2021 年 9 月和 2021 年 11 月，我們的董事會批准了額外的股票回購計劃，根據該計劃，公司可能回購總額高達 12 億美元的股票。第一季度，公司根據這些計劃額外回購了 1820 萬美元的股票。截至 2022 年 3 月 31 日，公司根據這些計劃總共回購了約 3.152 億美元的股票。這一努力證明了我們公司在公司的長期增長和盈利前景。我們將繼續積極利用股份回購為我們的股東和當前市場條件創造價值。

Going forward, as David just mentioned, while we prioritize investment into the cultivation of our content and social ecosystems, we will continue to execute our sustainable ROI driving growth strategy. We plan to continue to enhance our operating leverage, improved returns for each of our products and seek to maintain a strong operating cash flow. This we believe will provide us with greater financial flexibility to invest in our business and fundamental capabilities.

展望未來，正如大衛剛才提到的，雖然我們優先投資於內容和社交生態系統的培育，但我們將繼續執行我們可持續的投資回報率驅動增長戰略。我們計劃繼續提高我們的經營槓桿，提高我們每種產品的回報，並尋求保持強勁的經營現金流。我們相信這將為我們提供更大的財務靈活性，以投資於我們的業務和基本能力。

For our business outlook, we have indicated some negative impact on user online social entertainment activities from the gradual lift of pandemic-related lockdowns in certain countries. Macroeconomic environment volatility and exchange rate fluctuations will also continue to post uncertainties for our global business. We expect our net revenues for the second quarter of 2022 to be between USD 579 million and USD 600 million. We currently have limited visibility surrounding the macroeconomic environment, COVID-19 pandemic's long-term impact and geopolitical uncertainties on our business and the market in which we operate. Therefore, this forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change.

對於我們的業務前景，我們已經表明某些國家逐漸解除與大流行相關的封鎖對用戶在線社交娛樂活動產生了一些負面影響。宏觀經濟環境波動和匯率波動也將繼續為我們的全球業務帶來不確定性。我們預計 2022 年第二季度的淨收入將在 5.79 億美元至 6 億美元之間。目前，我們對宏觀經濟環境、COVID-19 大流行的長期影響以及地緣政治不確定性對我們的業務和我們經營所在市場的了解有限。因此，該預測僅反映我們對市場和經營狀況的當前和初步看法，這些情況可能會發生變化。

That concludes our prepared remarks. Operator, we would now like to open up the call to questions.

我們準備好的發言到此結束。接線員，我們現在想打開問題電話。

(Operator Instructions) Our first question will come from Alex Poon at Morgan Stanley.

（操作員說明）我們的第一個問題將來自摩根士丹利的 Alex Poon。

(foreign language) My first question is related to the post-COVID normalization and causing out revenue weakness in the first half. So can management share with us when do you expect revenue growth to return to positive year-over-year growth? And just now management also mentioned about the weaker macro environment impact on our business, how should we look at the full year 2022 revenue growth? My second question is related to TikTok, we recently has started a subscription business like Twitch and also plan to start casual game business in Vietnam. Can management share with us on new monetization strategy? Do we have any new plans?

（外語）我的第一個問題與後疫情正常化有關，導致上半年收入疲軟。那麼管理層能否與我們分享您預計收入增長何時會恢復到正的同比增長？而剛才管理層也提到宏觀環境對我們業務的影響較弱，我們應該如何看待2022年全年的收入增長？我的第二個問題與 TikTok 有關，我們最近開始了像 Twitch 這樣的訂閱業務，也計劃在越南開展休閒遊戲業務。管理層可以與我們分享新的貨幣化策略嗎？我們有什麼新計劃嗎？

(foreign language).

（外語）。

[Interpreted] Thank you, Alex. For your first question, as I just mentioned, since the second half of last year as global users resumed offline travel, there has been a negative impact on users' online social activities. And yet we have noticed that the long-term effects of the pandemic on the global economy, actually, are still continuing in '22, especially as multiple regions have adopted financial stimulus plans during the pandemic as well as an easing monetary policy. As these policies being gradually removed, we see increased uncertainty of the global economic growth and also the raising inflation affected consumers' consumption confidence and also their paying capability.

[解釋] 謝謝你，亞歷克斯。關於你的第一個問題，我剛才提到了，自去年下半年以來，全球用戶恢復線下旅遊，對用戶的線上社交活動產生了負面影響。然而，我們注意到，大流行對全球經濟的長期影響實際上在 22 年仍在繼續，特別是在多個地區在大流行期間採取了金融刺激計劃以及寬鬆的貨幣政策的情況下。隨著這些政策的逐步取消，我們看到全球經濟增長的不確定性增加，通脹上升也影響了消費者的消費信心和支付能力。

So such adverse macro trends definitely pose uncertainties and challenges for our business growth in the short term. And these challenges are not for us alone, that actually applies to all of the companies with worldwide operations. What we also want to point out is that opportunities often come with challenges. So as you can see in the past 2 years between '20 and '21, we successfully navigated multiple uncertainties during the pandemic and captured growth opportunity. Through the years of market operation, our business has reached a meaningful scale. We grew our revenue from $900 million in the year '19 to $2.6 billion in the year of '21, and we have achieved non-GAAP profitability since '21. And also, we have managed to maintain a relatively healthy operating cash flow.

因此，這種不利的宏觀趨勢在短期內肯定會給我們的業務增長帶來不確定性和挑戰。這些挑戰不僅僅針對我們，實際上也適用於所有在全球開展業務的公司。我們還想指出的是，機遇往往伴隨著挑戰。因此，正如您在 20 年至 21 年之間的過去 2 年中所看到的，我們在大流行期間成功應對了多種不確定性並抓住了增長機會。通過多年的市場運作，我們的業務已經達到了有意義的規模。我們的收入從 19 年的 9 億美元增長到 21 年的 26 億美元，並且自 21 年以來我們已經實現了非公認會計原則的盈利能力。而且，我們設法保持了相對健康的經營現金流。

So this experience will all lay a solid foundation for us to navigate the current challenges posed by the macro environment and help us better see further growth opportunities. So for our '22 outlook, our keyword remains the same, is to balance growth and profit. And given the rising uncertainties of the macro environment, will continue to act prudently and closely track market dynamics as we progress, we will continue to execute our sustainable ROI-oriented growth strategy and seek to maintain the resilience of our global business.

因此，這些經驗將為我們應對當前宏觀環境帶來的挑戰打下堅實的基礎，幫助我們更好地看到進一步的增長機會。因此，對於我們的 22 年展望，我們的關鍵詞保持不變，就是平衡增長和利潤。鑑於宏觀環境的不確定性不斷增加，我們將繼續審慎行事，並在我們取得進展的過程中密切跟踪市場動態，我們將繼續執行以投資回報率為導向的可持續增長戰略，並尋求保持我們全球業務的彈性。

(foreign language).

（外語）。

[Interpreted] And on your second question about new monetization, actually, if you noticed that we have previously already tried explored advertisement and also membership and these have been introduced in the previous years. And recently, we also have been actively exploring additional monetization tools. For example, Likee launched the Superfollow feature last quarter, and this allows creators to publish exclusive content and charge a monthly subscription fee to their fan groups. And the new 3D HAGO Space feature recently introduced by HAGO would also have some innovation and monetization.

[解釋]關於你關於新貨幣化的第二個問題，實際上，如果你注意到我們之前已經嘗試過探索廣告和會員，這些都是在前幾年推出的。最近，我們還一直在積極探索其他貨幣化工具。例如，Likee 上個季度推出了 Superfollow 功能，這允許創作者發布獨家內容，並向他們的粉絲團收取每月訂閱費。而HAGO最近推出的全新3D HAGO Space功能也將具有一定的創新性和盈利性。

However, I would like to admit that at the current stage, these features are still in the early stage of development. So -- and they are more targeted to improve product, user experience. So their contribution to revenue in the short term would be relatively small. For example, in Q1, you can see that our non-live streaming revenue is about $33.7 million accounting for slightly over 5% of our group's revenue. So we'll continue to observe user feedback on these new features, and will continue to explore opportunities to drive further diversification of our revenue stream.

但是，我要承認，在現階段，這些功能還處於開發的早期階段。所以——他們更有針對性地改進產品和用戶體驗。所以他們在短期內對收入的貢獻會相對較小。例如，在第一季度，您可以看到我們的非直播收入約為 3370 萬美元，占我們集團收入的 5% 以上。因此，我們將繼續觀察用戶對這些新功能的反饋，並將繼續探索推動收入流進一步多樣化的機會。

Our next question will come from Thomas Chong at Jefferies.

我們的下一個問題將來自 Jefferies 的 Thomas Chong。

(foreign language) My first question is about the competitive landscape for different regions. And how should we think about the second half business trend? And my second question is about the operating expenses side. How should we think about the expense outlook as well as the margin in 2022?

（外語）我的第一個問題是關於不同地區的競爭格局。又該如何看待下半年的經營趨勢？我的第二個問題是關於運營費用方面的。我們應該如何看待 2022 年的費用前景和利潤率？

(foreign language).

（外語）。

[Interpreted] Thank you, Thomas, for your question. Regarding your question, on competitive landscape, I think that the main pressure comes from the macro environment. As I've just mentioned, there would be a short-term fluctuation of users' online activity, time spend and sickness and at the same time, under paying capacity as well. So this means that for all industry players, we need to gain user engagement and monetization opportunity by providing better products with better service and compete with a wider range of competitors, both online and offline. So that's why I believe that we visit the original intention of users, what drives them to use these products and focus on the fundamentals when we were -- when we are planning our product strategy.

[解釋] 謝謝你，托馬斯，你的問題。關於你的問題，關於競爭格局，我認為主要壓力來自宏觀環境。正如我剛才提到的，用戶的在線活動、時間花費和疾病會出現短期波動，同時支付能力也會下降。因此，這意味著對於所有行業參與者，我們需要通過提供更好的產品和更好的服務來獲得用戶參與和貨幣化機會，並與更廣泛的在線和離線競爭對手競爭。所以這就是為什麼我相信我們會訪問用戶的初衷，是什麼驅使他們使用這些產品，並在我們規劃產品戰略時專注於基本面。

So we will continue to focus on the fundamentals of our products, cultivate our content and social ecosystem and continuously innovate our products to improve users' social experience. I still believe that from the long-term perspective, the global social entertainment market has huge potential and competition will always be there. It will be a long-term marathon as compared to a short-term game. And in such times of increasing macro uncertainty, risk control and ensuring long-term sustainable growth are more critical than ever. As I've just mentioned, through years of operation our business have already reached a meaningful scale, and we have established worldwide operational capacity and achieved non-GAAP profitability.

因此，我們將繼續專注於我們的產品基礎，培育我們的內容和社交生態系統，並不斷創新我們的產品，以改善用戶的社交體驗。我仍然相信，從長遠來看，全球社交娛樂市場潛力巨大，競爭永遠存在。與短期比賽相比，這將是一場長期的馬拉鬆比賽。在宏觀不確定性增加的時代，風險控制和確保長期可持續增長比以往任何時候都更加重要。正如我剛才提到的，通過多年的運營，我們的業務已經達到了可觀的規模，我們已經建立了全球運營能力並實現了非公認會計原則的盈利能力。

And our cash flow remained to be relatively healthy as well. I believe that we have already gained additional competitive advantage by being proactive and forward-looking in terms of risk control and ensuring our sustainable growth model. We believe that with the support of our strong cash flow and also our prudent growth model, we'll be able to better grasp the growth opportunities and further increase our market share.

我們的現金流也保持相對健康。我相信，通過在風險控制和確保我們的可持續增長模式方面的積極性和前瞻性，我們已經獲得了額外的競爭優勢。我們相信，在我們強勁的現金流和穩健的增長模式的支持下，我們將能夠更好地把握增長機遇，進一步提高我們的市場份額。

(foreign language).

（外語）。

[Interpreted] As I've mentioned just now, thanks to our sustainable growth strategy and continuous enhanced operational efficiency, we have achieved steady improvement in both GAAP and non-GAAP profitability in the first quarter. BIGO segment achieved non-GAAP net margin of 11.2% and the group achieved a non-GAAP net margin of 3.3%. So if you look at a comparison between Q1 and the same period last year, both our gross margin was improved and we saw cost savings happening across multiple non-GAAP operating expense items. So given the current macroeconomic uncertainty, we will continue our sustainable ROI-driven growth strategy and further enhance the overall operational efficiency and drive the further improvement at each of our product lines.

【解讀】正如我剛才提到的，得益於我們的可持續增長戰略和持續提升的運營效率，我們在第一季度的 GAAP 和非 GAAP 盈利能力均實現了穩步提升。 BIGO 部門實現了 11.2% 的非 GAAP 淨利潤率，集團實現了 3.3% 的非 GAAP 淨利潤率。因此，如果您看一下第一季度與去年同期之間的比較，我們的毛利率都得到了提高，而且我們看到多個非公認會計準則運營費用項目發生了成本節約。因此，鑑於當前宏觀經濟的不確定性，我們將繼續我們的可持續投資回報驅動增長戰略，進一步提高整體運營效率，推動我們每個產品線的進一步改進。

And so for BIGO segment, we expect gross margin will remain stable in the year '22. And cost savings would be achieved on various items to further -- due to further improve operating efficiency. And we expect BIGO segment's non-GAAP profitability for the full year to be further improved based on the full year level in the year '21. And for the other segments, we're still steadily proceeding narrowing losses on various product lines and also improved its operating efficiency. We're also expecting other segments to continue to narrow losses in the year '22.

因此，對於 BIGO 細分市場，我們預計 22 年毛利率將保持穩定。由於進一步提高運營效率，因此將進一步節省各種項目的成本。我們預計 BIGO 部門全年的非 GAAP 盈利能力將在 21 年全年水平的基礎上進一步提高。而對於其他領域，我們仍在穩步縮小各種產品線的虧損，並提高了運營效率。我們還預計其他部門將在 22 年繼續縮小虧損。

Our next question will come from Yiwen Zhang at China Renaissance.

我們的下一個問題將來自華興資本的張藝文。

(foreign language) So I have a question regarding cash usage. We know there's abundant cash on our balance sheet. How should we think about the usage priority, namely, how do we balance business investments in overseas share repurchase or even dividend payout?

（外語）所以我有一個關於現金使用的問題。我們知道我們的資產負債表上有大量現金。我們應該如何考慮使用優先級，即我們如何平衡海外股票回購甚至股息支付的業務投資？

(foreign language).

（外語）。

[Interpreted] Thank you for your question. In terms of cash usage, we will continue to be prudent and plan based on the long-term business development needs. I believe that based on our current cash position, we should be able to balance between keeping a sufficient cash flow for our earnings and also enhancing return for our shareholders. So in terms of our business, we will continue to invest in our global business to fuel organic growth and also execute -- continue to execute ROI-oriented growth strategy to create more value. And in the meantime, to reward our investors for their long-term support, we have been actively enhancing shareholder returns via dividends and share buybacks.

[解釋] 謝謝你的提問。在現金使用方面，我們將繼續審慎，根據長期業務發展需要進行規劃。我相信，基於我們目前的現金狀況，我們應該能夠在為我們的收益保持充足的現金流和提高股東回報之間取得平衡。因此，就我們的業務而言，我們將繼續投資於我們的全球業務以推動有機增長並執行——繼續執行以投資回報率為導向的增長戰略，以創造更多價值。同時，為了回報投資者的長期支持，我們一直在積極通過分紅和股票回購來提高股東回報。

In the year 2020, we have announced dividend plans with a total size of $500 million to be quarterly distributed in the following 3 years. And as of the end of the first quarter, we have already declared approximately $250 million of cash dividends under such dividend plan. And in the third quarter in the year 2021, we have expanded our share repurchase program by $1.2 billion. And by the end of the first quarter, we had repurchased approximately $320 million under these plans. So if you look at our overall capital return to shareholders as a percentage of our current market cap, that is a very sizable amount. We believe that our investors can see our sincerity from our actions as well.

在 2020 年，我們宣布了總規模為 5 億美元的股息計劃，將在接下來的 3 年中按季度分配。而截至一季度末，我們已經根據該分紅計劃宣派了約2.5億美元的現金分紅。在 2021 年第三季度，我們將股票回購計劃擴大了 12 億美元。到第一季度末，我們根據這些計劃回購了大約 3.2 億美元。因此，如果您將我們對股東的總體資本回報率視為我們當前市值的百分比，這是一個非常可觀的數字。我們相信，我們的投資者也能從我們的行動中看到我們的誠意。

And that's the end of our call. Thank you for joining, and we look forward to speaking with everyone next quarter. Thank you.

這就是我們通話的結束。感謝您的加入，我們期待在下個季度與大家交流。謝謝你。

Thank you very much. This does conclude the call today. Thank you all for joining. You may now disconnect.

非常感謝。這確實結束了今天的電話會議。謝謝大家的加入。您現在可以斷開連接。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此成績單中標記為 [已翻譯] 的部分由現場通話中的口譯員朗讀。]