Zichen Liu, Investor Relations, HUYA Inc.: 2026 earnings webinar. I’m Zichen Liu from the HUYA Investor Relations. At this time, all participants are in listen-only mode. Please be advised that today’s webinar is being recorded. The company’s financial and operational results were issued earlier today and are posted online. You can also view the earnings press release by visiting the IR website at ir.huya.com. A replay of the call will be available on the IR website soon. Participants of management on today’s call will be Mr. Vincent Junhong Huang, our Acting CEO, Mr. Raymond Teng Lei, our CFO, and Ms. Margaret Shi, Head of Capital Markets. Management will begin with prepared remarks, and the call will conclude with a Q&A session. Before we continue, please note that today’s discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties.

As such, the company’s results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company’s latest annual report on Form 20-F, and other public filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that HUYA’s earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. HUYA’s press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. With that, I’m pleased to turn the call over to Mr. Huang. Please go ahead.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: Okay. Hello, everyone. I’m Vincent, and thank you for joining our earnings call today. Let me begin with a brief overview of our second quarter performance. We deliver another quarter of sustainable growth, with total net revenues increasing by 11% year-over-year to CNY 1.74 billion. Game-related services, advertising, and other revenues maintain strong momentum, growing by 54% year-over-year to CNY 638 million and contributing approximately 37% of total net revenues. Behind this growth is our long-term positioning along the game industry value chain, which is steadily translating into sustainable growth momentum. Over the past three years, we have steadily expanded our presence across the game industry value chain, evolving from game distribution to in-game item sales, advertising and marketing, and now game publishing.

Throughout this journey, we have built differentiated user acquisition capabilities that have been increasingly recognized and validated by both our partners and the market. This give us the confidence to extend beyond our capacity as a publishing partner and take on the full game publisher role, which allow us to participate more deeply across the entire game life cycle. Our publishing model is built around content rather than paid traffic acquisition, leveraging our strengths in content creation, streamer network, and user communities. We foster high-quality UGC, expand our reach, and generate social buzz across platforms such as Douyin, Xiaohongshu, and WeChat Channels. This differentiated approach to publishing let us acquire users more efficiently while reducing our reliance on traditional paid traffic channels. Goose Goose Duck Mobile is our first success story published under this framework, maintaining an active user base and a vibrant content ecosystem.

Since July, we have stepped up our efforts to improve the in-game voice environment, launching an AI-powered voice moderation system and a tiered matchmaking system under the Goose Goose Alliance program. These measures have laid a solid foundation for a healthy in-game environment and sustained user engagement. On July 20, we launched a collaboration with the classic IP Journey to the West, together with a new party game play mode that expands player interaction across multiple sim spaces. The update expanded the experience beyond the game’s core social deduction game play into a broader range of immersive social experiences, resulting in enthusiastic reception by players. Supported by our ongoing efforts to improve the in-game environment and introduce compelling content updates, Goose Goose Duck Mobile returned to the number 1 position on the iOS free game chart in the Chinese mainland at the end of July.

The performance of Goose Goose Duck Mobile has demonstrated the effectiveness of HUYA’s content-driven marketing approach, while also helping us develop a repeatable publishing playbook and build valuable operational expertise for future titles. Next up in our pipeline are two titles we are publishing exclusively: The Legend of Swordsman: Reunion, the classic martial arts MMORPG, and Xiao Xiao Qi Yu, a 3D match-based casual mobile game. Our transition from co-publishing to exclusive publishing marks another step forward in the evolution of our publishing strategy. Officially licensed from Xishanju, The Legend of Swordsman: Reunion is the latest entry in the renowned Legend of Swordsman franchise, building on more than two decades of rich heritage. It was developed by the original core team behind the PC game Jian Xia World, and offers a seamless cross-platform experience featuring synchronized account data and gameplay across mobile app, PC, and mini-program platforms.

The game has completed its first round of testing and received encouraging user feedback. By combining our content marketing capabilities with the reach of our streamer network, we aim to bring this classic franchise to a broader audience while preserving the authentic gameplay that has made it a fan favorite for generations. Xiao Xiao Qi Yu is a 3D match-based casual mobile game featuring the official licensed Tian Meng Lu Pi IP and represents an expansion into the match category for HUYA. The title is well-aligned with our content-driven publishing model, with strong potential to generate user-created content, social engagement, and organic traffic across live-streaming and short-form video platforms. On the self-developed game front, we were pleased to see our first self-developed title, Zhe Dao You Huan Shou, receive regulatory approval for publication in July.

As a casual SLG centered on islands and pet collection, the game represents another important step in building an in-house game development capabilities. We are now actively preparing for its upcoming testing and look forward to sharing more updates as development progresses. On the advertising side, we continue to strengthen our content-driven integrated marketing solution for game developers during the quarter while broadening our advertiser base. Hearthstone has emerged as an important new customer this quarter. We partnered with leading streamers to deliver a series of tournaments and content collaborations for Hearthstone, highlighted by Da Men Global Invitational, the first global third-party platform tournament for Hearthstone Battlegrounds. It debuted in China and generated more than 200 million impressions across online platforms during tournament play, and received strong recognition from the client.

On the in-game item sales front, revenues maintained triple-digit year-over-year growth with Peacekeeper Elite, PUBG Mobile, Genshin Impact, and Arena Breakout as key contributors. For Peacekeeper Elite, we continue to invest in the broader game ecosystem. In particular, our coverage and commentary around PEL tournaments generated strong audience interest and engagement, enhanced the appeal of our in-game item offerings, and contributed to continued growth in related sales. In our live-streaming business, the outdoor entertainment content category continued to perform well during the quarter, while our overall streamer ecosystem remains stable. We are also exploring ways to drive greater synergies between game streaming and our entertainment verticals to boost the revenue contribution from top streamers.

Since the beginning of the second half of the year, we have also been proactively reviewing the economics of our live streamer partnership, aiming to improve the efficiency of our content investment and support a healthier, more sustainable live-streaming ecosystem. In terms of tournament content, we offer more than 100 licensed tournaments and approximately 20 self-produced tournaments on the HUYA platform during the quarter. Our self-produced events continued to grow in scale and build stronger proprietary event brands. For the CF Grand Master Cup, we officially partnered with CrossFire to stage an international invitational featuring eight professional teams and four leading overseas teams. The tournament also featured a crossover with the film Kung Fu Hustle, further integrating e-sport and broader entertainment content. The Dota 2 Immortal Cup Season 2 generated widespread online buzz and more than 2.5 billion impressions across online platforms.

In July, we launched both the Dota 4 Streamer Championship and the Peacekeeper Elite Mengnan Superstar Cup. Together, these events expanded our presence across leading shooter titles, strengthened our portfolio of self-produced tournaments, and enhanced HUYA’s appeal among core gamers. We also helped host the Valorant National Tournament, earning further recognition from game developers for our tournament hosting and product capabilities. On product and AI, we continue to apply AI technologies across our game content ecosystem to improve both our products and overall platform experience. For popular titles such as Dota 4, League of Legends, and Teamfight Tactics, we have launched a range of AI-powered game tools, including map navigation and combat assistance features. These tools have driven solid user engagement and retention.

Users of this tool have also shown higher activity levels, longer viewing time, and greater monetization potential on the HUYA platform, reinforcing our view that AI-powered game tools will play an increasingly important role in reaching our live-streaming ecosystem and creating long-term value. In July, we released VAM 1.0, our self-developed real-time multi-modal digital human model. VAM can rapidly generate AI-powered virtual hosts with natural speech, thinking capabilities, and expressive body movements, enabling highly realistic real-time interaction. We believe VAM has the potential to meaningfully improve the economics of live-streaming content. Unlike traditional live streaming, where content supply is inherently constrained by the number and availability of human streamers, VAM enables us to scale content production more efficiently. As development expands, deployment expands, we expect operating leverage to increase with our marginal content creation cost declining while content supply become more scalable.

Looking back at the quarter, we continue to make steady progress in executing our long-term strategy across publishing, self-development, AI innovation, and game-related services. We have further strengthened our capabilities and expanded our role across the game industry value chain. Looking ahead, we remain focused on executing our content-driven strategy, deepening our partnership across the gaming ecosystem, and investing in the capabilities that will support our next phase of growth. We believe these efforts will further strengthen HUYA’s competitive position and create sustainable long-term value for our shareholders. Thank you. With that, I will now turn the call over to our CFO, Raymond Li. He will share more details on our results. Raymond, please go ahead.

Raymond Teng Lei, CFO, HUYA Inc.: Thank you, Vincent, and hello, everyone. I will start with an overview of our financial performance. In the second quarter, we delivered steady top-line growth while continuing to improve our revenue mix and operating performance. With a larger revenue contribution from our higher-margin game-related services, advertising, and other businesses, our gross margin expanded to 14.7%. Operating loss narrowed to RMB7 million and the non-GAAP operating income improved both year-over-year and sequentially to RMB16 million. Let’s move on to more details of our Q2 financial results. Total net revenues were RMB1.74 billion for Q2, up 11% from the same period last year. Live streaming revenues were RMB1.1 billion for Q2, compared with RMB1.15 billion for the same period last year, primarily reflecting the live streaming industry’s current environment. Game-related services, advertising, and other revenues were RMB638 million for Q2, up 54% from the same period last year.

The increase was primarily driven by higher revenues from in-game item sales and advertising, as well as the contribution from the commercialization of Goose Goose Duck Mobile. Cost of revenues increased by 10% year-over-year to RMB1.48 billion for Q2, generally in line with the increase in revenues, primarily due to increased revenue sharing fees and the cost of in-game virtual items. Within this, revenue sharing fees and the content cost rose by 3% year-over-year to RMB1.21 billion. Gross profit was RMB255 million for Q2, up 20% from the same period last year. Gross margin was 14.7% for Q2, improving from 13.5% for the same period last year. Excluding share-based compensation expenses, non-GAAP gross profit was RMB257 million, and the non-GAAP gross margin was 14.8% for Q2. Research and development expenses decreased by 1% year-over-year to RMB120 million for Q2.

Sales and marketing expenses increased by 58% year-over-year to RMB91 million for Q2, primarily due to continued marketing and promotional efforts related to Goose Goose Duck Mobile. General and administrative expenses decreased by 8% year-over-year to RMB58 million for Q2, primarily due to decreased professional service fees. Other income was RMB7.8 million for Q2, compared with RMB7.6 million for the same period last year. Operating loss narrowed to RMB7 million for Q2, compared with a loss of RMB24 million for the same period last year. Excluding share-based compensation expenses and amortization of intangible assets from business acquisition, non-GAAP operating income increased to RMB16 million from RMB0.4 million in the same period last year.

Interest income was RMB26 million for Q2, down from RMB59 million for the same period last year, primarily due to a decrease in the average deposit balance as a result of special cash dividends and lower interest rates. Net income attributable to HUYA Inc. was RMB1.6 million for Q2, compared with a net loss attributable to HUYA Inc. of RMB5.5 million for the same period last year. Excluding share-based compensation expenses and amortization of intangible assets from business acquisitions, net of income taxes, non-GAAP net income attributable to HUYA Inc. was RMB36 million for Q2, compared with RMB48 million for the same period last year. Basic and diluted net income per ADS were each RMB0.01 for Q2. Non-GAAP basic and diluted net income per ADS was each RMB0.16 for Q2.

As of June 30, 2026, the company had cash and cash equivalents, short-term deposits, and long-term deposits of RMB3.21 billion, compared with RMB3.46 billion as of March 31, 2026. With that, I’d like to open the call to your questions.

Zichen Liu, Investor Relations, HUYA Inc.: Thanks, Raymond, and hello everyone. If you are dialing in by phone, please press 5 to ask a question, then press 6 to unmute yourself. If you are accessing the call from the Tencent Meeting or VooV Meeting applications, please click the raise hand button at the bottom left. For the benefits of all participants on today’s call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Today’s first question comes from Ritchie Sun from HSBC. Your line is open. Please go ahead.

Ritchie Sun, Analyst, HSBC: Vincent, Raymond, Margaret, good evening. Thank you for the opportunity to ask a question. I would like to ask about the progress of Goose Goose Duck. Could you please share the operation update, monetization performance, and summer promotion progress for Goose Goose Duck Mobile? Good evening, management. Thank you for taking my question. My question is about Goose Goose Duck. Can you please share the operation update, monetization performance, and summer promotion progress for Goose Goose Duck? Thank you.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: Okay. I will answer this question. Thank you for your question, Ritchie. In Q2, the user base of Goose Goose Duck still maintained resilience. It is mainly composed of young users between 18 and 25 years old. From the long-term trend, we also see that the decline is actually very low, and the stickiness of the core users remains strong. At the same time, we are also continuously investing in the overall game ecosystem management. The AI voice synthesis system was also officially launched mid-last month. The focus is mainly on optimizing the voice and community environment, and continuously improving players’ game and social experience.

Margaret Shi, Head of Capital Markets, HUYA Inc.: In the second quarter, Goose Goose Duck Mobile continued to maintain a healthy and engaged player base with users aged between 18 to 25 remaining our core demographic. Long-term retention remained stable with limited user churn, reflecting continued engagement among our core users. We also continue to invest in building a healthy and a positive game environment. Last month, we launched an AI-powered voice moderation system to improve the quality of in-game voice chat and foster a more positive community environment. This has helped enhance both the gameplay and social experience for our players and further supports the long-term health of the game.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 从商业化方面呢，《鹅鸭杀》的变现能力也得到了进一步的验证。从4月份的《甄嬛传》联动以来，游戏的整个商业的价值也得到了一个持续的释放。6月初的《狐妖小红娘》的联动，包括7月份我们和《西游记》还有《小黄鸭》的联动，也进一步提升了我们产品的热度。助力游戏，我们在7月底重返到了整个App Store的游戏免费榜的榜首。往后看，我们联动的内容储备还是十分丰富的。基本上每个月我们都会规划新的主题的运营活动，比如说在这个月，就是8月，我们还即将上线《剑网3》的联动，来进一步丰富我们整个内容的供给。

Margaret Shi, Head of Capital Markets, HUYA Inc.: On monetization, the game continues to demonstrate its strong commercial potential. Since our very first IP collaboration with Empresses in the Palace in April, we have continued to unlock new monetization opportunities. Subsequently, we had collaborations with Fox Spirit Matchmaker in June, Journey to the West and B.Duck in July, further boosted player engagement and helped the game return to the number 1 spot on iOS free game charts at end of July. We aim to have a robust pipeline of collaborations with new themed events planned on almost monthly basis. In August, for example, we plan to launch additional collaborations including JX3, further expanding our content offerings and creating new opportunities to drive player engagement and monetization.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 在内容生态方面，像猎鹅模式，还有台球、麻将这些UGC的玩法，目前占用户整个总的时长的比例也在持续地提升。暑期档的内容储备我们也比较丰富，比如说7月份我们上线了个人岛的这种家装系统，包括让玩家能够打造属于自己的私人的定制的海岛。8月到9月我们还将陆续地推出多个版本的更新，涵盖比较核心的玩法迭代、游戏内的社交的互动玩法、AI对局，还有赛事功能等多个方向，我们也希望能够持续地去丰富玩家的整个游戏体验。

Margaret Shi, Head of Capital Markets, HUYA Inc.: On the content front, it’s encouraging to see UGC modes such as Goose Hunt, Pool and Mahjong continue to account for an increasing share of total player time. We also have a robust summer content lineup. In July, we launched a personal island home decorating system, giving players greater freedom to design and customize their own islands. From August through September, we plan to roll out a series of updates spanning core gameplay, social features, AI-powered matches, and tournament features, further enhancing the overall play experience.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 同时我们和研发团队目前也正在重点地推进微信小游戏的版本。前期我们将以产品的稳定性，还有核心的这个数据的验证为主。并且我们也希望能够充分地去利用微信的整个生态的分享，还有社交的传播能力，来降低用户邀请好友，还有组织对局的这些门槛。也基于我们上半年的积累的这种用户基础，微信小游戏的这个版本，我们也有希望能够进一步去扩展到新的用户的触达场景，来为后续的用户增长打开更大的空间。整体来看，我们对于《鹅鸭杀》的整个长期的生态的健康发展，用户的活跃度，商业化的潜力，仍然保持一个充分的信心。

Margaret Shi, Head of Capital Markets, HUYA Inc.: We’re also working closely with R&D team to develop the WeChat mini game version. At this stage, we are focused on ensuring product stability and testing key operating metrics while taking advantage of WeChat’s built-in social and sharing features to make it easier for players to invite friends and organize game sessions. With a solid user base established in the first half of the year, the WeChat mini game version gives us an opportunity to reach new audience across the WeChat ecosystem and drive the next phase of our user growth. Overall, we remain fully confident in the long-term health and stability of Goose Goose Duck Mobile ecosystem, as well as its user engagement and monetization potential.

Zichen Liu, Investor Relations, HUYA Inc.: Our next question comes from Maggie from CLSA. Please go ahead. Maggie, please unmute yourself.

Maggie, Analyst, CLSA: 能听到吗？

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 可以。

Maggie, Analyst, CLSA: 谢谢管理层接受我的提问。想请管理层是否能够更详细地跟我们介绍一下虎牙目前在AI方面的一些实质性的进展，比如说在这个内容推荐呀，主播工具以及互动功能等方面的落地情况。那么展望未来呢，这些功能将如何帮助虎牙的这个用户增长以及商业化？

Margaret Shi, Head of Capital Markets, HUYA Inc.: [Foreign language] Could management elaborate a bit more on HUYA’s overall AI initiative? For example, the creator tools, content recommendation as well as any interactive features. How are these capabilities expected to drive user growth as well as monetization over the next few months and then over the midterm as well? Thank you.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 感谢Maggie的提问，这个问题也由我来回答。正如我们在上个季度我们有提到说我们整个AI的布局是围绕着四个方向来进行推进的。首先第一个是AI加直播，AI加游戏工具，还有AI加IP陪伴，以及AI加游戏制作。在AI直播方面，我们这个季度也推出了我们自研的实时的多模态数字人模型VAM 1.0。在实时的全双工数字人赛道上面，我们目前应该是处在一个行业的第一梯队。那对整个行业而言，我们认为VAM正在推动数字人从展示型的这种产品走向实时交互型的应用。直播内容供给我们也有望能够在未来的接下来的话，能够突破真人主播在时间，还有成本上面的这个约束，来推动这个行业向真人加AI这样混合内容的这个生态来进行演进。那对于我们公司而言，VAM也是我们虎牙在AI战略的这个内容侧的核心的载体。那也依托我们整个自研模型的这个能力，我们能够以更低的边际成本，还有更高效率来扩大我们多个场景的AI内容供给，并且让它能够逐步成为用户增长，还有平台长期价值的重要增量的来源。

Margaret Shi, Head of Capital Markets, HUYA Inc.: As mentioned last quarter, our AI initiatives remain focused on four areas: live streaming, game tools, IP-based companionship, and AI-assisted game development. In AI-powered live streaming, we launched VAM 1.0, our proprietary real-time multi-modal digital human model during this quarter. VAM is among the leading solutions in a real-time full duplex digital human space, and we believe it is helping digital humans to move beyond visual and display purposes towards more practical and real-time interactions. By reducing the time and cost constraints associated with human live streamers, VAM could help accelerate the industry’s shift towards a hybrid content ecosystem powered by both humans and AI. Our proprietary model enables us to scale AI-powered content across a broader range of user cases with greater efficiency and a lower marginal cost, creating new opportunities to expand our content supply on our platform.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 后续我们也将围绕着用户体验、模型的能力，还有我们成本效益三个主线来进行持续的迭代。重点来提升整个形象的一致性，还有包括表情，还有动作的表现，实时对话和语音的自然度，并且来进一步地降低延迟，还有算力的成本。

Margaret Shi, Head of Capital Markets, HUYA Inc.: We will continue to enhance our VAM model, focusing on improving the avatar consistency, facial expressions, and body movements, as well as the naturalness of real-time dialogue and speech, while further reducing latency and computing costs.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 在AI游戏工具方面，三角洲行动的地图工具，还有《海克斯大乱斗》的助手自上线以来表现也是持续稳健。半年之内，我们累计的用户已经突破了百万，用户的留存也保持一个健康的趋势。第二季度，我们也上线了云顶之弈的工具。第一次我们将AI辅助能力扩展到像自走棋这样的一个品类。云顶之弈也具有策略复杂度高、实时决策需求比较强的这些特点，那跟AI局内的实时辅助具有一个较高的匹配度，这也进一步验证了AI实时辅助技术在跨品类互用的可行性。后续我们也将结合用户的需求来逐步探索更多的策略类游戏工具。

Margaret Shi, Head of Capital Markets, HUYA Inc.: AI game tools, the Delta Force map tool and Hextech ARAM assistant have delivered steady performance since their launches. Within 6 months, they have attracted more than 1 million users and maintained healthy retention. In the second quarter, we launched Teamfight Tactics assistant, marking our first expansion of AI assistant into auto chess genre. Given its strategic complexity and strong need for real-time decision making, Teamfight Tactics is a natural fit for real-time in-game AI assistance. This further demonstrate that our AI assistant capabilities can be applied across game genres. Based on user demand, we will gradually explore tools for additional strategy games.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: AI游戏工具对我们主站的协同价值也在持续地得到验证。以《海克斯大乱斗》的助手为例，用户使用这个工具之后，我们也可以看到在虎牙的月活跃的天数提升超过了一倍。观看的频次，还有观看的时长，还有整体的用户价值都有明显的提升。这也说明了AI工具不仅能够满足玩家的实际需求，也能够有效地增强用户活跃度，还有平台的粘性。

Margaret Shi, Head of Capital Markets, HUYA Inc.: The value of our AI-powered game tools to the HUYA platform is becoming increasingly more evident. Take our Hextech ARAM assistant as an example. After adopting the tool, users more than doubled their monthly active days on HUYA platform, while also watching more frequently and for longer periods, resulting in higher overall user engagement and value.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 此外，我们也在持续地探索AI加IP陪伴，还有基于多agent协同的AI辅助的游戏的制作。其中的多模态的AI实体陪伴产品设计也计划今年内我们会启动一个预热。AI辅助游戏的制作目前也处在一个早期的验证阶段，重点应用于像休闲还有轻量的互动内容生成和测试。

Margaret Shi, Head of Capital Markets, HUYA Inc.: We also continuing to explore AI-enabled IP companionship and AI-assisted game development through multi-agent workflows. Later this year, we plan to begin pre-launch promotion for a physical multi-modal AI companion product. Our AI system game development efforts is also at a quite early testing stage with current applications focused on generating and testing casual and lightweight interactive content.

Zichen Liu, Investor Relations, HUYA Inc.: Our next questions comes from Nelson from Citi. Please go ahead.

Nelson, Analyst, Citi: [Foreign language] So let me translate into English. Thanks management for taking my question. Following the success of Goose Goose Duck, how would HUYA position its game publishing business in future? Can management share the latest update on your product pipeline and publishing schedule going forward? Thank you.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 谢谢Nelson的提问，这个问题由我来回答。游戏发行是我们从整个的游戏直播平台向整个综合游戏生态服务提供商转型的一个重要组成部分。目前虎牙我们整个的核心优势，并不只是说在流量的导入，而是能够去整合我们整个直播内容、主播的矩阵、玩家的社区，还有赛事资源和商业化的能力，以此来形成整个内容营销，带动用户触达，还有产品运营整个的发行模式。而《鹅鸭杀》的整个的成功上线，也验证了我们在内容驱动发行社交赋能游戏的路径，也帮助我们能够初步建立了从产品的上线，还有用户获取到长期运营的一体化的能力。

Margaret Shi, Head of Capital Markets, HUYA Inc.: The game publishing is a key part of our transformation from a live streaming platform into a more integrated game service provider. Our core strength goes beyond traffic acquisition. What sets us apart is strength of our content ecosystem, which enables us to build awareness, engage users, and support games throughout their lifecycle. The successful launch of Goose Goose Duck Mobile validated our content-driven publishing approach and the role of a social engagement in enhancing the game experience. It also helped us to begin building integrated end-to-end capabilities spanning product launch, user acquisition and long-term operations.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 在产品的选择上面，我们也会继续围绕像精品游戏，还有优质的IP来进行布局。重点关注具有较强的这种内容传播、社交互动和长期的运营潜力的产品。同时，我们也逐步在拓宽品类和用户的覆盖。正如我们在前面的陈述当中也提到说，目前我们已经有三款的重点产品，我们正在积极地推进，包括像虎牙独家发行的《剑侠情缘：重逢》、《潇潇奇遇》，还有我们自研的《这岛有怪兽》。此外，我们还有多款的产品正处在一个筹备的阶段。

Margaret Shi, Head of Capital Markets, HUYA Inc.: In selecting products, we will continue to focus on high quality games and premium IP, prioritizing titles with strong content appeal, social interactivity and long-term operational potential, while gradually broadening our genre mix and user reach. As mentioned in our prepared remarks, we are actively advancing three key titles: Legend of Swordsman: Reunion, Xiao Xiao Qi Yu, both of which will be exclusively published by HUYA, and our self-developed title, Zhe Dao You Guai Shou. Several other additional titles are also under preparation.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 总体来看，我们整个游戏发行的业务也是并非依赖《鹅鸭杀》这样单一的这个产品，而是正在逐步形成多个品类的产品矩阵，包括像社交推理、经典武侠，还有休闲消除类等等。在整个推进的节奏上面，我们也会坚持精品化和审慎投入，按照内容的预热，产品的测试，还有数据的验证，逐步放量，还有长线的运营的路径来进行推进，为游戏相关的服务业务提供更多元还有持续的增长功能。

Margaret Shi, Head of Capital Markets, HUYA Inc.: We’d like to emphasize that the success of publishing strategy is not dependent on Goose Goose Duck Mobile game alone. It was just the beginning. We are building a diversified portfolio across multiple genres, including social deduction, classic martial art, and casual match three games. We remain committed to a quality-first approach and disciplined investments marketing following a phased strategy that includes pre-launch content marketing, product testing and data validation, gradual scaling and long-term operations. This approach will enable us to build broader and more sustainable growth drivers for our game-related services.

Zichen Liu, Investor Relations, HUYA Inc.: Our next question comes from Raphael from BOCI. Please go ahead. Please go ahead, Raphael.

Raphael, Analyst, BOCI: [Foreign language] Thanks management for letting me ask question. I am just wondering how does management assess current streaming performance and future streaming operational strategies? Following content optimization executions, what is the potential upside for cost savings in the second half of this year? Thank you.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 谢谢Raphael的提问，这个问题我来回答。我们从第二季度来看，我们整个直播的收入大约是在11亿元左右，同比也是低个位数的一个下降，环比基本保持稳定。那相对行业的整体水平，我们整个的表现依然是比较稳健的。从付费的结构来看，我们付费的用户数和ARPU，最近几个季度总体都保持在一个相对稳定的区间。

Margaret Shi, Head of Capital Markets, HUYA Inc.: In the second quarter, live streaming revenue approximately CNY 1.1 billion, down by low single digit percentage year-over-year and broadly stable sequentially. Relative to the broader industry, our performance remained resilient. Paying user numbers and ARPU have also remained within a relatively stable range over the past several quarters.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 目前整个行业客观地讲，仍然面临用户付费的意愿比较弱、平台竞争加剧的压力。所以我们也不会单纯地去追求内容的投入规模，而是更加地去关注我们主播签约，还有我们赛事版权采购的实际的回报。与此同时，我们也在重新评估和优化部分主播的合作模式和成本的结构。我们希望能够进一步提升我们整个投入和产出的效率。

Margaret Shi, Head of Capital Markets, HUYA Inc.: The industry continues to face pressure from softer user spending and intensifying competition among platforms. In this environment, we will place greater focus on the returns from our content investment. We are actively reviewing our streamer contracts and tournament licensing agreements to make sure we are getting the right returns from our content investments.

Vincent Junhong Huang, Acting CEO, HUYA Inc.: 我们也正在推动我们平台的娱乐主播和游戏主播之间的这种强强的联动，来促进用户在不同的内容场景之间的流转。同时我们也通过像广告下单、游戏联运，还有带货这些多元化的变现方式，来进一步地去挖掘游戏主播的整个的商业价值。

Margaret Shi, Head of Capital Markets, HUYA Inc.: We are also strengthening collaboration between entertainment and game streamers to drive cross-category user engagement. At the same time, we are expanding monetization opportunities through branded advertising campaigns, joint game operations, and live stream commerce, helping our game streamers to generate more value from their content and audience.

Zichen Liu, Investor Relations, HUYA Inc.: Our next question comes from Wei Meng from CICC. Please go ahead.

Wei Meng, Analyst, CICC: 感谢管理层接受我提问。那么我这边想问一下，就是管理层是如何看待这个毛利率和经营

Hey, Wei Meng.

Hello.

Zichen Liu, Investor Relations, HUYA Inc.: Hello, Wei Meng, we cannot hear from you.

Margaret Shi, Head of Capital Markets, HUYA Inc.: 的贡献预计会是在什么时候体现？让我来翻译一下。

Zichen Liu, Investor Relations, HUYA Inc.: Wei Meng 你可以方便中文再重新问一遍吗？刚才那个电话有点断。

Wei Meng, Analyst, CICC: 好的，我再问一遍。我这边想问一下，毛利率和其他经营利润的后续趋势，以及游戏发行之后的流水增长对于利润的体现大概是一个什么样的看法？

Margaret Shi, Head of Capital Markets, HUYA Inc.: I would like to ask about the margins, especially the operating performance outlook. As the game publishing revenue scales up, when do you expect the profit contribution to start showing up? Thank you.

Raymond Teng Lei, CFO, HUYA Inc.: 谢谢Wei Meng的提问。这个问题我来回答。从经营表现来看，二季度毛利率同比提升了1.2个百分点，Non-GAAP的经营利润达到1,600万，同比显著改善，实现较为可观的季度经营盈利。展望未来，随着游戏发行等较高毛利业务占比继续提升，以及投入效率进一步优化，我们认为毛利率和经营利润率总体仍有进一步改善的空间。

Margaret Shi, Head of Capital Markets, HUYA Inc.: Our gross margin improved by 1.2 percentage points year-over-year in the second quarter. Non-GAAP operating profit reached RMB16 million, a very significant year-over-year improvement and a quarter with a meaningful level of operating profit. Looking ahead, as higher margin businesses such as game publishing make up a larger share of our revenue, we continue to improve spending efficiency and we see further opportunities to improve both gross margin and operating margin.

Zichen Liu, Investor Relations, HUYA Inc.: Now we will take our last question today from Rebecca from Morgan Stanley. Please go ahead.

Rebecca, Analyst, Morgan Stanley: [Foreign language] Thanks management for taking my questions. Could you please share the latest progress of the company’s share buyback and the plan for the shareholder return going forward? Thank you.

Raymond Teng Lei, CFO, HUYA Inc.: 谢谢Rebecca的问题。股东回报方面，公司持续通过现金分红和股份回购等方式回馈股东。公司在二季度回购了大约320万股ADS，占发行在外股份总数约1.4%，其中部分已经完成注销，其余的部分也将按计划陆续注销。目前，公司仍在既定的Rule 10b5-1回购计划下持续推进股份回购。

Margaret Shi, Head of Capital Markets, HUYA Inc.: On shareholder returns, we continue to return capital to the shareholders through cash dividends and share repurchases. In the second quarter, we repurchased approximately 3.2 million ADS, representing approximately 1.4% of our total outstanding shares. A portion of these ADSs have already been canceled and the remainder will be canceled as planned. We continue to repurchase shares pursuant to our existing Rule 10b5-1 trading plan.

Raymond Teng Lei, CFO, HUYA Inc.: 我们也很高兴地宣布，董事会已批准2026年股票回购计划，规模从5000万美元扩大至1亿美元。回购规模的扩大反映了我们对虎牙业务前景的信心，以及持续提升长期股东价值的承诺。

Margaret Shi, Head of Capital Markets, HUYA Inc.: We are also very pleased to announce that the board has approved the expansion of our 2026 share repurchase program from $50 million to $100 million. The expanded authorization reflects our confidence in HUYA’s business outlook and our continued commitment to enhancing long-term shareholder value. Rebecca, maybe I can add a bit more here. If we calculate at our current market cap of around $554 million, plus our $100 million buyback program, that would mean roughly $50 million share repurchases each year if spread over two years. Combined with at least $30 million in annual cash dividends, that would translate into a shareholder yield of around 14%-15% per year. Thank you.

Raymond Teng Lei, CFO, HUYA Inc.: Thank you once again for joining us today. If you have further questions, please feel free to contact HUYA’s Investor Relations through the contact information provided on our website or Piacente Financial Communications. This concludes today’s call and we look forward to speaking to you again next quarter. Thank you.

Margaret Shi, Head of Capital Markets, HUYA Inc.: Thank you.

Raymond Teng Lei, CFO, HUYA Inc.: Thank you.