On November 19th, JOYY Inc Group officials responded to the short selling by Muddy Waters, saying that the Muddy Waters short report contained a large number of misinformation and statements, as well as misleading conclusions.

A few days ago, Muddy Waters released a short selling report by JOYY Inc Group, which showed that the agency had studied nearly 150 million live YY transactions.It is expected that nearly 90 per cent of the revenue reported by the JOYY Inc era for the YY live broadcast business is falsified data, and the vast majority of YY live broadcast claimed paying users also have the same problem. There is also an 80 per cent falsification in the revenue data of BIGO LIVE, the international live broadcast business.

YY official saidMuddy Waters is questioned because it does not understand the business model of the entire live broadcast industry. JOYY-related operation data are available for reference in the same industry, which is in line with the logic of the industry.Live broadcast has become an important means of income in the Internet industry. There have been a number of well-known Internet listed companies, live broadcast as the main source of income.

In order to refute the Muddy Waters report's doubts about the authenticity of the company's profits, JOYY Inc Group saidCan provide cash balances and bank deposit statements at home and abroad, which can be confirmed and investigated by competent third-party institutions.

JOYY Inc Group saidWill continue to implement the $300 million share buyback programTo show the company's confidence in the long-term future.

Yesterday, JOYY Inc maintained a high shock, rising more than 21 per cent in intraday trading and closing up 16.9 per cent at $86.11. The previous session fell 26% due to being shorted.

The following is a statement by JOYY Inc Group refuting the Muddy Waters report:

1. Yesterday, Muddy Waters issued a short report on JOYY, causing anxiety and unease in the market and causing abnormal volatility in share prices. The company believes that the report contains a large number of misinformation and statements, as well as misleading conclusions.

2. Muddy Waters is questioned because it does not understand the business model of the entire LVB industry. The operation data related to JOYY are available for reference in the same industry, which is in line with industry logic. Live broadcast has become an important means of income in the Internet industry. There have been a number of well-known Internet listed companies, live broadcast as the main source of income.

3. The company has strong cash flow and cash reserves. In order to refute the doubts in the Muddy Waters report about the authenticity of the company's profits, the company can provide cash balances and bank deposit statements at home and abroad, which can be confirmed and investigated by competent third-party institutions. In August 2020, the board agreed to pay a dividend of $300m over the next three years and paid a dividend of $25 million in the third quarter of 2020, confirming the company's confidence in strong cash flow.

4. When JOYY acquired BIGO, it strictly followed the proper corporate governance process and obtained all necessary approvals. In the 20 months since the acquisition, BIGO revenue has grown rapidly from $181 million in the second quarter of 2019 to $490 million in the third quarter of 2020. Bigo live ranked sixth in the global revenue rankings for non-game applications released by AppAnnie in September.

5. In order to show the company's confidence in the long-term outlook, JOYY will continue to implement a $300 million share buyback program.

JOYY

November 19, 2020