SANTA CLARA,Calif.,Aug. 27,2024 --Tuya Inc. ("Tuya" or the "Company") (NYSE:TUYA;HKEX: 2391),a global leading cloud platform service provider,today announced its unaudited financial results for the second quarter ended June 30,2024 and the declaration of a special cash dividend.

Second Quarter 2024 Financial Highlights

Total revenue was US$73.3 million,up approximately 28.6% year over year (2Q2023: US$57.0 million).

IoT platform-as-a-service ("PaaS") revenue was US$54.3 million,up approximately 32.0% year over year (2Q2023: US$41.1 million).

Software-as-a-service ("SaaS") and others revenue was US$9.6 million,up approximately 2.4% year over year (2Q2023: US$9.4 million).

Smart solution revenue was US$9.4 million,up approximately 44.2% year over year (2Q2023: US$6.5 million).

Overall gross margin increased to 48.0%,up 1.3 percentage points year over year (2Q2023: 46.7%). Gross margin of IoT PaaS increased to 47.6%,up 3.4 percentage points year over year (2Q2023: 44.2%).

Operating margin was negative 14.1%,improved by 41.0 percentage points year over year (2Q2023: negative 55.1%). Non-GAAP operating margin was 10.0%,improved by 21.2 percentage points year over year (2Q2023: negative 11.2%),marking the Company's first positive quarterly non-GAAP operating margin.

Net margin was 4.3%,improved by 45.6 percentage points year over year (2Q2023: negative 41.3%). Non-GAAP net margin was 28.4%,improved by 25.7 percentage points year over year (2Q2023: 2.7%).

Net cash generated from operating activities was US$11.8 million (2Q2023: US$7.5 million).

Total cash and cash equivalents,time deposits and treasury securities recorded as short- term and long-term investments were US$1,000.1 million as of June 30,2024,compared to US$984.3 million as of December 31,2023.

Forfurther informationonthenon-GAAPfinancial measurespresentedabove,seethesectionheaded"UseofNon-GAAPFinancial Measures."

Second Quarter 2024 Operating Highlights

IoT PaaS customers1 for the second quarter of 2024 were approximately 2,100 (2Q2023: approximately 2,300). Total customers for the second quarter of 2024 were approximately 3,000 (2Q2023: approximately 3,300). The Company's key-account strategy has enabled it to focus on serving strategic customers.

Premium IoT PaaS customers2 for the trailing 12 months ended June 30,2024 were 280 (2Q2023: 251). In the second quarter of 2024,the Company's premium IoT PaaS customers contributed approximately 84.8% of its IoT PaaS revenue (2Q2023: approximately 79.8%).

Dollar-based net expansion rate ("DBNER")3 of IoT PaaS for the trailing 12 months ended June 30,2024 was 127% (2Q2023: 58%).

Registered IoT device and software developers were over 1,192,000 as of June 30,up 20.1% from approximately 993,000 developers as of December 31,2023.

TheCompany definesanIoTPaaScustomer foragivenperiodasacustomer whohasdirectly placedordersfor IoT PaaS withtheCompanyduringthatperiod.

The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than US$100,000ofIoTPaaS revenue duringtheimmediatelypreceding12-monthperiod.

TheCompany calculatesDBNERofIoTPaaSforatrailing12-month periodbyfirstidentifyingallcustomersintheprior12-monthperiod(i.e.,thosehaveplacedatleastoneorderforIoTPaaSduringthatperiod),and thencalculatingthequotientfromdividingtheIoTPaaSrevenuegenerated fromsuchcustomers inthecurrent trailing12-monthperiodbytheIoTPaaSrevenuegenerated fromthesameCompanyofcustomersintheprior 12-monthperiod.TheCompany'sDBNERmaychangefromperiodtoperiod,duetoacombinationofvarious factors,includingchanges inthecustomers'purchasecyclesandamounts andtheCompany'scustomer mix,amongotherthings. DBNERindicatestheCompany's abilitytoexpandcustomeruseoftheTuyaplatform over timeandgenerate revenuegrowthfromexistingcustomers.

Mr.Xueji(Jerry)Wang,FounderandChiefExecutive OfficerofTuya,commented,"Thesecond quarterof2024marksasignificantmilestoneforourcompany,asweattained aquarterlynon- GAAP operatingprofitforthefirsttimeinourhistory withanoperatingmarginofabout10%.This achievement demonstrates the effectiveness of our business model and highlights the operationalleveragewithinourbusiness,aswellasourcommitmenttodeliveringonourpromises. As the world's leading cloud platform service provider,we are entering a new phase in the smart technology sector. This progress is fueled by a more favorable competitive environment,GenAI technologyadvancements,renewed momentuminthesmartconsumer electronicsandsmart businessmarkets,and,moreimportantly,Tuya'sunwaveringcommitmenttostrategicdecisions andexecutionfocusedoncustomers,product innovation,andoperations.Lookingahead,we remain focused on driving long-term revenue growth and achieving solid profit margins,whilecontinuingtodeliver thebestsmarttechnologysolutions toourglobalcustomersandpartners."

Ms. Yao (Jessie) Liu,Director and Chief Financial Officer of Tuya,added,"Our strong financial performanceinthesecondquarterwasunderscoredbya29%year-over-yearincrease intotal revenue,reaching $73.3million.OurIoTPaaSrevenuegrewby32%year-over-year,fueled by a resurgence in industry demand and our ability to attract new customers while strengtheningpartnershipswithexistingones.Meanwhile,oursmartsolutions revenuesawa44.2%year-over-yearincrease,reflectingthestrongmarketdemandandthevaluepropositionofourofferings. Crucially,ourstrongrevenue growth,enhancedefficiency,stablegrossmargins,andexcellentcontrol over expenses and costs led to Tuya's first-ever non-GAAP operational profitability in thisquarter.Looking ahead,weareconfidentthatTuya's strongfinancialandoperationalfoundationwillcontinuetodrivesustainablegrowthandprofitmarginimprovements."

Second Quarter2024Unaudited FinancialResults

REVENUE

Total revenue in the second quarter of 2024 increased by 28.6% to US$73.3 million from US$57.0million inthesameperiodof2023,mainlyduetotheincrease inIoTPaaS revenueandsmart solution revenue.

IoT PaaS revenue in the second quarter of 2024 increased by 32.0% to US$54.3 million from US$41.1 million in the same period of 2023,primarily due to reduced downstream inventory backlog,a global economic recovery compared with the same period of 2023,and the Company's strategic focus on customer needs and product enhancements. As a result,the Company's DBNER of IoT PaaS for the trailing 12 months ended June 30,2024 increased to 127% from 58% for the trailing 12 months ended June 30,2023.

SaaS and others revenue in the second quarter of 2024 increased by 2.4% to US$9.6 million from US$9.4 million in the same period of 2023. During the quarter,the Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.

Smart solution revenue in the second quarter of 2024 increased by 44.2% to US$9.4 million from US$6.5 million in the same period of 2023,primarily due to the increasing customer demand for smart devices with integrated intelligent software capabilities the Company developed beyond IoT.

COST OF REVENUE

Costofrevenueinthesecondquarterof2024increased by25.4%toUS$38.1million from US$30.4millioninthesameperiodof2023,generally inlinewiththeincrease intheCompany's total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit in the second quarter of 2024 increased by 32.1% to US$35.2 million from US$26.6 million in the same period of 2023 and gross margin increased to 48.0% in the second quarter of 2024 from 46.7% in the same period of 2023.

IoT PaaS gross margin in the second quarter of 2024 was 47.6%,compared to 44.2% in the same period of 2023,primarily due to the changes in product mix and increased product value.

SaaS and others gross margin in the second quarter of 2024 was 71.0%,compared to 74.5% in the same period of 2023,due to the variations in product and service mix.

Smart solution gross margin in the second quarter of 2024 was 26.8%,compared to 23.0% in the same period of 2023,primarily due to the high-value product solutions the Company provided to its customers during the second quarter of 2024.

OPERATING EXPENSES

Operating expenses decreased by 21.6% to US$45.5 million in the second quarter of 2024 from US$58.1 million in the same period of 2023. Non-GAAP operating expenses decreased by 15.6% to US$27.8 million in the second quarter of 2024 from US$33.0 million in the same period of 2023. For further information on the non-GAAP financial measures presented above,see the section headed "Use of Non-GAAP Financial Measures."

Research and development expenses in the second quarter of 2024 were US$23.0 million,down 13.1% from US$26.5 million in the same period of 2023,primarily due to the decrease in employee-related costs. During this quarter,average salaried employee headcount of the Company's research and development team was down approximately 16.7% year over year,but remained relatively stable compared to the previous quarter. Non-GAAP adjusted research and development expenses in the second quarter of 2024 were US$19.6 million,compared to US$22.5 million in the same period of 2023.

Sales and marketing expenses in the second quarter of 2024 were US$9.4 million,down 4.5% from US$9.8 million in the same period of 2023,primarily due to the decrease in employee- related costs. Non-GAAP adjusted sales and marketing expenses in the second quarter of 2024 were US$8.2 million,compared to US$8.2 million in the same period of 2023.

General and administrative expenses in the second quarter of 2024 were US$16.9 million,down 30.5% compared to US$24.3 million in the same period of 2023,primarily due to the decline in credit-related impairment of long-term investments. Non-GAAP adjusted general and administrative expenses in the second quarter of 2024 were US$3.7 million,compared to US$4.8 million in the same period of 2023.

Other operating income,net in the second quarter of 2024 was US$3.7 million,primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.

LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN

Loss from operations in the second quarter of 2024 narrowed by 67.1% to US$10.3 million from US$31.4 million in the same period of 2023. The Company had a non-GAAP profit from operations of US$7.4 million in the second quarter of 2024,compared to a non-GAAP loss from operations of US$6.4 million in the same period of 2023,achieving operating profitability on a non-GAAP basis for the first time.

Operatingmargininthesecondquarter of2024wasnegative14.1%,improvedby41.0percentage points from negative 55.1% in the same period of 2023. Non-GAAP operating margin in the second quarterof2024was10.0%,improved by21.2percentagepointsfromnegative11.2%inthesame period of 2023.

NET LOSS/PROFIT AND NET MARGIN

The Company had a net profit of US$3.1 million in the second quarter of 2024,compared to a net loss of US$23.5 million in the same period of 2023,marking it the first fiscal quarter that the Company has achieved break-even profitability on a GAAP basis. The difference between loss from operations and net profit in the second quarter of 2024 was primarily because of a US$12.5 million interest income achieved mainly due to well implemented treasury strategies on the Company's cash,time deposits and treasury securities recorded as short-term and long-term investments.

The Company had a non-GAAP net profit of US$20.8 million in the second quarter of 2024,up 1,276.5% compared to US$1.5 million in the same period of 2023,demonstrating the Company's ability to sustain strong profitability on a non-GAAP basis.

Netmargininthesecondquarter of2024was4.3%,improving by45.6percentagepointsfrom negative41.3%inthesameperiodof2023.Non-GAAPnetmargininthesecondquarterof2024 was28.4%,improvingby25.7percentagepointsfrom2.7%inthesameperiodof2023.

BASIC AND DILUTED NET LOSS/PROFIT PER ADS

Basic and diluted net profit per ADS was US$0.01 in the second quarter of 2024,compared to basic and diluted net loss of US$0.04 in the same period of 2023. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.04 in the second quarter of 2024,compared to non-GAAP basic and diluted net profit of US$0.00 in the same period of 2023.

CASH AND CASH EQUIVALENTS,TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS

Cashandcashequivalents,timedepositsandtreasurysecuritiesrecordedasshort-termandlong- terminvestmentswereUS$1,000.1million asofJune30,comparedtoUS$984.3million asof December 31,2023,which the Company believes is sufficient to meet its current liquidity andworking capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities in the second quarter of 2024 was US$11.8 million,compared to US$7.5 million in the same period of 2023. The net cash generated from operating activities for the second quarter of 2024 improved mainly due to the increase in the Company's revenue,and the decrease in operating expenses,particularly employee-related costs,and working capital changes in the ordinary course of business.

For further information on non-GAAP financial measures presented above,see the section headed "Use of Non-GAAP Financial Measures."

BusinessOutlook

With the stabilizing macroeconomic environment,normalizing downstream inventory levels,andgrowingdemandforconsumer electronics,theindustry iscurrentlyonapositive trajectory.Withthe effective implementation of the Company's customer and product strategies,along with theutilizationandinnovationofemergingtechnologieslikegenerativeAI,theCompany isconfident in its business prospects.

TheCompanywillremaincommitted tocontinuouslyiterating andimprovingitsproducts andservices,further enhancingsoftwareandhardwarecapabilities,expandingkeycustomer base,investing in innovations and new opportunities,diversifying revenue streams,and furtheroptimizingoperating efficiency.Atthesametime,theCompany understandsthatfuturetrajectories mayencounterchallenges,includingshifting consumerspendingpatterns,regionaleconomic disparities,inventory management,foreign exchange rate and interests rate volatility,and broader geopolitical uncertainties.

DeclarationofSpecialDividend andRecordDate

On August 26,the Board has approved the declaration and distribution of a special dividend (the "Special Dividend") of US$0.0589 per ordinary share,or US$0.0589 per ADS,to such holders as at the close of business on September 11,Hong Kong Time and New York Time,respectively. The aggregate amount of the Special Dividend will be approximately US$33 million,which is payable in U.S. dollars and in cash,and will be funded by surplus cash and to be paid out from the share premium account of the Company. The determination to make distributions and the amount of such distributions will be made at the discretion of its Board and will be based upon the Company's operations and earnings,including,but not limited,considerations of the Company's GAAP and Non-GAAP net profits,cash flows,financial conditions and other relevant factors.

In order to qualify for the Special Dividend,with respect to ordinary shares registered on the Company's Hong Kong share register,all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's Hong Kong share registrar,Computershare Hong Kong Investor Services Limited,at Shops 1712-1716,17th Floor,Hopewell Centre,183 Queen's Road East,Wan Chai,Hong Kong,no later than 4:30 p.m. on Wednesday,September 11,Hong Kong time; and with respect to the ordinary shares registered on the Company's principal share register in the Cayman Islands,all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company's principal share registrar,Maples Fund Services (Cayman) Limited,at PO Box 1093,Boundary Hall,Cricket Square,Grand Cayman,KY1-1102,Cayman Islands,no later than 3:30 p.m. on Tuesday,September 10,Cayman Islands time (due to the time difference between Cayman Islands and Hong Kong).

Dividend to be paid to the holders of ADSsissuedbythedepositaryoftheADSswillbesubjectto thetermsofthedeposit agreement.

The payment date is expected to be on or around October 9,2024 for holders of ordinary shares,and on or around October 15,2024 for holders of ADSs.

ConferenceCallInformation

TheCompany'smanagementwillholdaconferencecallat08:30P.M.Eastern TimeonMonday,August26,2024(08:30A.M. Beijing Time on Tuesday,August 27,2024) to discuss the financial results. In advance of the conference call,all participants must use the following link to complete the online registration process. Upon registering,each participant will receive access details for this conference including a conference access code,a PIN number (personal access code),the dial- in number,and an e-mail with detailed instructions to join the conference call.

Online registration: https://register.vevent.com/register/BI51298387e78143d9935bd5c0ea03f104

Additionally,a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.tuya.com,and a replay of the webcast will be available following the session.

AboutTuya Inc.

TuyaInc.(NYSE:TUYA; HKEX: 2391) is a global leading cloud platform service provider with a mission to build a smart solutions developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built cloud developer platform with cloud and generative AI capabilities that delivers a full suite of offerings,including Platform-as-a-Service,orPaaS,Software-as-a- Service,or SaaS,and smart solutions for developers of smart device,commercial applications,and industries. Through its cloud developer platform,Tuya has activated a vibrant global developer community of brands,OEMs,AI agents,system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low- carbon,security,high efficiency,agility,and openness.

UseofNon-GAAP FinancialMeasures

In evaluating the business,the Company considers and uses non-GAAP financial measures,such as non-GAAP operating expenses,non-GAAP loss from operations (including non-GAAP operating margin),non-GAAP net (loss)/profit (including non-GAAP net margin),and non-GAAP basic and diluted net (loss)/profit per ADS,as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America ("U.S.GAAP"). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses,credit-related impairment of long-term investments and litigation costs from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors' assessment of its operating performance.

Non-GAAP financial measures are not defined underU.S.GAAPandarenotpresented in accordancewithU.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company's operations. Share-based compensation expenses,credit-related impairment of long-term investments and litigation costs have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further,the non-GAAP financial measures may differ from the non- GAAP information used by other companies,including peer companies,and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparableU.S. GAAP measures,all of which should be consideredwhenevaluatingtheCompany's performance.TheCompany encouragesyoutoreviewitsfinancialinformationinitsentirety andnotrelyonasinglefinancial measure.

ReconciliationsofTuya's non-GAAPfinancialmeasures tothemostcomparableU.S.GAAP measuresareincludedattheendofthispressrelease.

SafeHarborStatement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts,including statements about the Company's beliefs,and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties,and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases,forward-looking statements can be identified by words or phrases such as "may","will","expect","anticipate","target","aim","estimate","intend","plan","believe","potential","continue","is/are likely to" or other similar expressions. Further information regarding these and other risks,uncertainties or factors is included in the Company's filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof,and the Company disclaims any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances,except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

InvestorRelationsContact

Tuya Inc.

Investor Relations Email:ir@tuya.com

The Blueshirt Group Gary Dvorchak,CFA

Phone: +1 (323) 240-5796

Email:gary@blueshirtgroup.co

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31,2023 AND JUNE 30,2024

(All amounts in US$ thousands ("US$"),

except for share and per share data,unless otherwise noted)

As of December

31,

2023

As of June

30,

2024

ASSETS

Current assets:

Cash and cash equivalents

498,688

614,767

Restricted cash

–

152

Short-term investments

291,023

175,218

Accounts receivable,net

9,214

6,763

Notes receivable,net

4,955

7,271

Inventories,net

32,865

28,088

Prepayments and other current assets,net

11,053

19,027

Total current assets

847,798

851,286

Non-current assets:

Property,equipment and software,net

2,589

2,394

Operating lease right-of-use assets,net

7,647

6,007

Long-term investments

207,489

220,401

Other non-current assets,net

877

9,562

Total non-current assets

218,602

238,364

Total assets

1,066,400

1,089,650

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

11,577

11,638

Advances from customers

31,776

32,299

Deferred revenue,current

6,802

6,504

Accruals and other current liabilities

32,807

30,625

Incomes tax payables

689

–

Lease liabilities,current

3,883

3,872

Total current liabilities

87,534

84,938

Non-current liabilities:

Lease liabilities,non-current

Lease liabilities,non-current

3,904

2,120

Deferred revenue,non-current

506

425

Other non-current liabilities

3,891

2,300

Total non-current liabilities

8,301

4,845

Total liabilities

95,835

89,783

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS OF DECEMBER 31,unless otherwise noted)

As of

December 31,

2023

As of June

30,

2024

Shareholders' equity:

Ordinary shares

–

–

Class A ordinary shares

25

25

Class B ordinary shares

4

4

Treasury stock

(53,630)

(43,628)

Additional paid-in capital

1,616,105

1,637,052

Accumulated other comprehensive loss

(17,091)

(18,323)

Accumulated deficit

(574,848)

(575,263)

Total shareholders' equity

970,565

999,867

Total liabilities and shareholders' equity

1,400

1,650

COMPREHENSIVE LOSS

(All amounts in US$ thousands ("US$"),unless otherwise noted)

For the Three Months Ended

For the Six Months Ended

June 30,

2023

June 30,

2024

June 30,

2024

Revenue

57,004

73,279

104,489

134,941

Cost of revenue

(30,363)

(38,087)

(56,820)

(70,264)

Gross profit

26,641

35,192

47,669

64,677

Operating expenses:

Research and development expenses

(26,474)

(22,993)

(54,525)

(46,467)

Sales and marketing expenses

(9,826)

(9,387)

(20,085)

(18,370)

General and administrative expenses

(24,273)

(16,861)

(41,066)

(32,335)

Other operating incomes,514

3,705

4,294

5,784

Total operating expenses

(58,059)

(45,536)

(111,382)

(91,388)

Loss from operations

(31,418)

(10,344)

(63,713)

(26,711)

Other income

Other non-operating incomes,net

778

1,869

1,556

2,647

Financial income,305

12,452

18,775

25,259

Foreign exchange gain/(loss),net

937

(257)

903

(362)

(Loss)/profit before income tax expense

(22,398)

3,720

(42,479)

833

Income tax expense

(1,151)

(592)

(2,115)

(1,248)

Net (loss)/profit

(23,549)

3,128

(44,594)

(415)

Net (loss)/profit attributable to Tuya Inc.

(23,594)

(415)

Net (loss)/profit attributable to ordinary shareholders

(23,594)

(415)

Net (loss)/profit

(23,594)

(415)

Other comprehensive (loss)/income

Changes in fair value of long-term investments

(1,053)

(139)

(1,053)

(139)

Transfer out of fair value changes of long-term

investments

8,050

–

8,050

(65)

Foreign currency translation

(6,882)

(600)

(5,254)

(1,028)

Total comprehensive (loss)/income attributable to Tuya Inc.

(23,434)

2,389

(42,851)

(1,647)

COMPREHENSIVE LOSS (CONTINUED)

(All amounts in US$ thousands ("US$"),unless otherwise noted)

For the Three Months Ended

For the Six Months Ended

June 30,

2024

June 30,

2024

Net (loss)/profit attributable toTuya Inc.

(23,128

(44,594)

(415)

Weighted average number of ordinary shares used in computing net

loss per share

– Basic

554,945,739

559,710,445

554,472,706

559,421,815

– Diluted

554,739

592,735,568

554,815

Net (loss)/profit per share attributable to ordinary shareholders

– Basic

(0.04)

0.01

(0.08)

0.00

– Diluted

(0.04)

0.01

(0.08)

0.00

Share-based compensation expenses were included in:

Research and development expenses

4,006

3,376

8,123

6,882

Sales and marketing expenses

1,620

1,169

3,226

2,554

General and administrative expenses

11,386

10,864

22,983

21,787

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in US$ thousands ("US$"),unless otherwise noted)

For the Three Months Ended

For the Six Months Ended

June 30,

2024

Net cash generated from/(used in) operating activities

7,495

11,829

(11,387)

26,319

Net cash generated from/(used in) investing activities

11,489

73,890

(22,335)

90,085

Net cash generated from/(used in) financing activities

104

(104)

(2,067)

150

Effect of exchange rate changes on cash and cash equivalents,

restricted cash

(3,791)

(197)

(2,830)

(323)

Net increase/(decrease) in cash and cash equivalents,restricted

cash

15,297

85,418

(38,619)

116,231

Cash and cash equivalents,restricted cash at the beginning of period

79,245

529,501

133,161

498,688

Cash and cash equivalents,restricted cash at the end of period

94,542

614,919

94,919

UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST

DIRECTLY COMPARABLE FINANCIALMEASURES

(All amounts in US$ thousands ("US$"),

2024

Reconciliation of operating expenses to non-GAAP operating expenses

Research and development expenses

(26,467)

Add: Share-based compensation

4,882

Adjusted Research and development expenses

(22,468)

(19,617)

(46,402)

(39,585)

Sales and marketing expenses

(9,370)

Add: Share-based compensation

1,554

Adjusted Sales and marketing expenses

(8,206)

(8,218)

(16,859)

(15,816)

General and administrative expenses

(24,335)

Add: Share-based compensation

11,787

Add: Credit-related impairment of long-term investments

8,050

189

8,050

189

Add: Litigation costs

–

2,100

–

2,100

Adjusted General and administrative expenses

(4,837)

(3,708)

(10,033)

(8,259)

Reconciliation of loss from operations to non-GAAP

(loss)/profit from operations

Loss from operations

(31,711)

Add: Share-based compensation expenses

17,012

15,409

34,332

31,223

Add: Credit-related impairment of long-term investments

8,100

Non-GAAP (Loss)/Profit from operations

(6,356)

7,354

(21,331)

6,801

Non-GAAP Operating margin

(11.2)%

10.0%

(20.4)%

5.0%

Reconciliation of net (loss)/profit to non-GAAP net profit/(loss)

Net (loss)/profit

(23,594)

(415)

Add: Share-based compensation expenses

17,100

Non-GAAP Net profit/(loss)

1,513

20,826

(2,212)

33,097

Non-GAAP Net margin

2.7%

28.4%

(2.1)%

24.5%

Weighted average number of ordinary shares used in computing non-

GAAP net profit/(loss) per share

– Basic

554,445

554,815

– Diluted

586,513,021

592,568

554,706

591,970,099

Non-GAAP net profit/(loss) per share attributable to ordinary

shareholders

– Basic

0.00

0.04

0.00

0.06

– Diluted

0.00

0.04

0.00

0.06