DouYu (DOYU) Announces Special Dividend causing stock prices to surge

DouYu International Holdings Limited (Nasdaq: DOYU), a leader in the game-centric live streaming arena in China and an innovator within the eSports industry, today announced a substantial financial reward for its shareholders. The Company’s board of directors has approved a special cash dividend of US$9.76 per ordinary share, or US$9.76 per American Depositary Share (“ADS”), for holders recorded as of August 21, 2024.

Substantial Cash Dividend Payout

The total cash dividend payout is set at approximately US$300 million, with distributions planned for on or around August 30, 2024, to both ordinary shareholders and ADS holders. For ADS holders, these dividends will be processed through JPMorgan Chase Bank, N.A., the depositary, according to the deposit agreement’s stipulations.

Strategic Financial Management in Trying Times

In the face of challenging macroeconomic and operational climates, DouYu’s interim management committee highlighted the company’s commitment to shareholder value. “Given our strong cash position, our Board of Directors has approved this special cash dividend of approximately US$300 million as part of our ongoing commitment to returning value to our shareholders,” the committee stated.

Stock Performance on Announcement Day

On the day of the announcement, DouYu’s stock saw significant trading activity, closing at $17.94, up $5.35, or 42.49%. After hours, the stock slightly retreated by $0.09 to $17.85, a modest drop of 0.50%. Throughout the day, shares fluctuated between $15.90 and $18.33, touching the upper bound of its 52-week range. Trading volume surged to 5,201,967, substantially higher than the average volume of 189,991, indicating robust investor interest following the dividend announcement.

About DouYu International Holdings Limited

Based in Wuhan, China, DouYu operates a premier game-centric live streaming platform and a pivotal part of the eSports value chain. Through its PC and mobile apps, DouYu offers immersive and interactive gaming and entertainment livestreams, extensive video and graphic content, and community events. With a strategic focus on gaming and eSports, DouYu is dedicated to developing a sustainable talent development system and consistently delivering high-quality content, enhancing user experiences and promoting long-term growth. For more information, please see DouYu’s investor relations page.

Looking Ahead

This strategic financial maneuver not only highlights DouYu’s solid financial footing but also underscores its unwavering commitment to maximizing shareholder returns. As DouYu continues to innovate in the eSports and live streaming sectors, its focus on rigorous financial strategies and high-quality content delivery is expected to sustain its leadership position in the evolving market landscape.