JOYY Refutes Muddy Waters’ Report
November 19 2020 - 8:40AM
JOYY Inc. (Nasdaq: YY) (“JOYY” or the “Company”), a global
video-based social media platform, today issued the following
statement in response to allegations made in a report by Muddy
Waters.
Yesterday, Muddy Waters issued a short seller
report on JOYY, causing anxiety and market disturbance, leading to
abnormal share price movements. The Company believes that the
report contains numerous errors, unsubstantiated statements, and
misleading conclusions and interpretations regarding information
relating to the Company.
Muddy Waters’ report shows its lack of a basic
understanding of the live streaming industry in China. The
operating metrics disclosed by JOYY are commonly used and
publicized by its industry peers. Live streaming has become a key
revenue engine for companies in the internet sector, including a
number of public companies listed in the U.S. and Hong Kong.
JOYY has solid cash balance and has consistently
generated strong cash flow. To conclusively refute the report’s
false allegation regarding the authenticity of JOYY’s profit
figures, the Company is open to cash verification and diligence to
be conducted by competent third-party advisers. The Company’s
dividend policy of US$300 million announced in August 2020, with
US$25 million already paid out in the third quarter of 2020, is
also testament to the Company’s confidence in its operating cash
flow.
JOYY’s acquisition of BIGO strictly followed the
necessary corporate governance procedures and obtained all
requisite approvals. In the 20 months since the acquisition, BIGO
witnessed rapid revenue growth, with its top-line increasing from
US$181 million in the second quarter of 2019 to US$490 million in
the third quarter of 2020. Bigo Live ranked as the sixth highest
grossing non-game mobile app in the world in September 2020,
according to App Annie.
To demonstrate the Company’s confidence in its
long-term prospects, JOYY will continue to execute on its US$300
million share repurchase program.
About JOYY Inc. JOYY Inc. is a
global social media platform. The Company’s highly engaged users
contribute to a vibrant social community by creating, sharing, and
enjoying a vast range of entertainment content and activities. JOYY
enables users to interact with each other in real time through
online live media and offers users a uniquely engaging and
immersive entertainment experience. JOYY owns BIGO, a fast-growing
global tech company headquartered in Singapore. BIGO owns several
popular video based social platforms including Bigo live, a leading
global live streaming platform outside China; Likee, a leading
global short-form video social platform; and video communication
service and others. JOYY has created an online community for global
video and live streaming users. JOYY Inc. was listed on the NASDAQ
in November 2012.
Safe Harbor Statement This
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. 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 JOYY’s 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. Further information regarding these and
other risks is included in JOYY’s filings with the SEC. All
information provided in this press release 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.
Investor Relations Contact JOYY
Inc. Jane Xie/Maggie Yan Tel: +86 (20) 8212-0000 Email:
IR@YY.com
ICR, Inc. Jack Wang Tel: +1 (646) 915-1611
Email: IR@YY.com
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