DouYu’s Profit Turnaround Fails to Impress Skeptical Market

DouYu International Holdings has re-emerged on investor radars following unexpectedly strong second-quarter 2025 results that demonstrated a remarkable financial transformation. The Chinese gaming and livestreaming platform delivered its first profitable quarter in over a year, though market reaction suggests persistent concerns about the company’s long-term prospects.

The company’s profitability metrics showed substantial improvement during the quarter. DouYu reported net income of RMB 37.8 million (US$5.3 million), a significant reversal from the loss recorded in the same period last year. Total revenue saw modest growth of 2.1 percent, reaching RMB 1,053.9 million.

Even more impressive was the dramatic expansion in gross margin, which jumped to 13.5 percent from 8.2 percent in the prior year period. This improvement propelled gross profit upward by 68.5 percent to... Read more...