Q3 2024 HUYA Inc Earnings Call
Unknown Executive: To drive this progress, we continue to enhance content and upgrade product features on our platform to improve users' experience while exploring new partnerships and business opportunities to expand our user reach and unlock our growth potential. Moreover, despite the ongoing challenges in the macroeconomic and industrial environment, we maintain a relatively stable year-over-year operating performance and achieve a non-gap net income of RMB78 million.
We continue to enhance content and upgrades product features on our platform.
To improve user experience, while exploring new partnerships.
Business opportunities to expand our user reach and unlock our growth potential.
Moreover, despite the ongoing challenges in the macro economic and industry environment, we maintained relatively stable year over year operating performance and a chip a non-GAAP net income of RMB $78 million.
Now, let's take a detailed look at our recent operational and strategic achievements.
Unknown Executive: Now let's take a detailed look at our recent operational and strategic achievements. First, our users' engagement across our high-quality user base remains stable during the third quarter, with mobile MAUs improving slightly sequentially to 84 million. While we maintain our disciplined approach to marketing and promotion spending, we also enrich our content and service offerings, as well as product features to reinforce our users' engagement. Furthermore, we continue to strengthen our cooperation with various content platforms, joining hands with these partners to conduct cross-platform streaming. and co-produced premium professional content. We also selectively distributed our comparing game live streaming and video content to product lines within Tencent's ecosystem and other content channels.
First our users engagement across our high quality user base remained stable during the third quarter was mobile <unk>.
Improving slightly decreased sequentially to $84 million.
While we maintained our disciplined approach to marketing and promotion spending we also enrich our content and service offerings as well as product features to reinforce our users' engagement.
Furthermore, we continue to strengthen our cooperation with various content platforms.
Joining hands with these partners to conduct broad cross platform streaming.
And co produced premium.
<unk> no content, we also selectively distributed our comparing game live streaming and video content to product lines with the Tencent ecosystem and other content channels.
Unknown Executive: Thanks to these initiatives, we estimate that HUYA's content reached a total of over 140 million users in September, taking into account other platforms' users as well as our own mobile users. We believe our productive platform collaborations will continue to broaden our reach among gamer users, empowering us to explore more commercialization of opportunities around game-related services and live streaming. Moving on to game-related services, our game distribution, in-game item sales, and game advertising business continue to grow robustly. Revenues from game-related services, advertising, and others reached RMB410.2 million for the third quarter of 2024, up by $2.5 109.3% year-over-year and 32.9% quarter-over-quarter.
Thanks to these initiatives, we estimate that for you as content reached a total of over 140 million users in September taking into account other platforms user as well as our own mobile users.
We believe our productive platform collaborations we will continue to broaden our reach.
Gammer users empowering us to explore more commercial adjacent opportunities around game related services.
And live streaming.
Moving onto game related services, our game distribution in game item sales and advertising business continued to grow robust study.
Revenues from Gambro relative services advertising and others reached RMB $410 2 million for the third quarter of 2024 up two by two.
109, 3% year over year, and 32, 9% quarter over quarter.
Full game distribution, we work closely with game studios on New game release version updates and related operational activities and incentivized our broadcasters to participate in game distribution.
Unknown Executive: For game distribution, we work closely with game studios on new game release, version updates, and related operational activities, and incentivized our broadcasters to participate in game distribution. These efforts effectively promoted our growth this summer, with total growth received generated through HUYA's game distribution channel in the third quarter, rising to more than 20 times that of the year-ago period. The quarter's top titles included Honor of Kings, Demi-Gods, and Semi-Devil Mobile, D&F Mobile, QQ Speed Mobile, and Peacekeeper Elite. We are confident of further developing our game distribution service as we expand our reach in the vast game market by offering distribution for wider range of titles, including both mobile and PC games, and collaborating with additional game studios.
This effort effectively promoted our grossly summer was total growth received <unk>.
<unk> generated so we asked game distribution channel in the third quarter rising to more than 20 times debt off.
The year ago period.
Top titles included honour of Kings Dominion gas and semi Tivo mobile <unk> mobile QQ speed mobile and Peacekeeper edit we are confident of further developing our game distribution service.
We expand our reach in the vast game market by offering distribution for wider range of titles, including both mobile and PC games and collaborating with additional game studios.
Unknown Executive: What's more, we plan to implement targeted initiatives for broadcasters to enable them to provide more tailored user services and drive users' interest in exploring and engaging with the games distributed via our platform. We have also strengthened our collaboration with major game titles in game item sales, broadening the scope of our coverage in this area. In particular, we were promoting exclusive or customized in-game items for our platform and broadcasters, and holding sales events for initial release of new in-game items. For instance, during the third quarter, we held a crossfire workshop offering HUYA inclusive weapon skins, as well as an inclusive initial release of co-branded outfit skins featuring a well-known broadcaster on our platform.
What's more we plan through impairment targeted initiatives for broadcasters to enable them to provide more tailored user services and drive the users' interest in exploring and engaging with the games distributed via our platform.
We have also strengthened our collaborations with major game titles in game item sales.
<unk> the scope of our coverage in this area in particular, we are promoting a corrosive or customized in game items for our platform and broadcasters and holding sales events for initial release of new in game items.
For instance, during the third quarter, we held across fire workshop offering we are crossing women's schemes as well as in a cruise ship initial release of co branded our fifth skins, featuring a well no broadcaster on our platform.
Unknown Executive: sold on that broadcaster's channel.
So one that broadcasters channel.
Unknown Executive: Post-initiative, Jane Gannon. Great interest from our users. Notably, the total value of the co-branded outfit skins sold on the broadcaster's channel during this initial release activity exceeded RMB 50 million, validating the growth potential of our in-game item sales business. In terms of game advertising, we responded to the summer's increasing game marketing demand with comparing new game launch promotions and anniversary events for the existing games. In the third quarter, we collaborated with a number of game companies promoting popular games such as Arena Breakout, World of Warcraft, and Naruka Mobile. Going forward, we will continue to diversify our advertiser base and enhance our game promotion and marketing capabilities through HUYA's streamer-created content and in-house produced events.
Speaker Change: Both initiatives Jim Cannon Gray.
Speaker Change: Great interest from our users, notably the total value of the cole brand at our fifth skins showed owned broadcasters channel. During this initial release activity exceeded RMB 50 million validating the growth potential of our <unk>.
Speaker Change: Item sales business.
Speaker Change: In terms of game advertising, where you lose a bounded to the summers increasing game marketing demand with comparing new game launch promotions and virtually events for the existing games in the third quarter, we cooperate with.
Speaker Change: A number of game companies promoting popular game game, such as arena breakout world of Warcraft and narrow <unk> mobile <unk>.
Going forward, we will continue to die versus buy our advertiser base.
Speaker Change: Face and enhanced our game promotion and marketing capabilities drove we ask Jim or created content and in house produce events.
Unknown Executive: Moving on to our professional content enrichment efforts on our platform, including licensed and in-house content. In the third quarter, we broadcasted over 90 licensed esports tournaments. The LPL, KPL, Valorant Champions, and Esports World Cup were among the most watched events during the quarter. In addition to the tournament of more proven esports game titles, which continue to attract user attention, Valorant tournaments have become increasingly popular since the game's launch in China last year. This year's Valorant Champions increased its viewership by approximately 160% compared to the previous edition, further boosting the popularity of the game's content on our platform.
Speaker Change: Moving onto our professional content enrichment efforts on our platform, including license and in house content.
Speaker Change: In the third quarter, we broadcasted over 90 license esports tournament.
The LPL PPL veterans Champions and is bought would cough were among the most award watched events during the quarter. In addition to the tournament of more proven esports game titles, which continued to attract user attention <unk>.
Speaker Change: <unk> tournament have become increasingly popular strains the game's launch in China last year.
Speaker Change: This year's Werent champions increased is viewer ship by approximately 160% compared to the previous Edison further posting the popularity of the game's content on our platform.
We also broadcast at the recently concluded <unk> 2020 for one of the year's most important esports events, we prepare comprehensively for <unk> and we are pleased to see our hard work drive productivity outcomes.
Unknown Executive: We also broadcasted the recently concluded LOL Worlds 2024, one of the year's most important esports events. We prepare comprehensively for LOL Worlds and we are pleased to see our hard work drive positive outcomes. We optimized our tournament broadcast audio and video technology for the event, providing a variety of HDR video quality options to suit users' various devices and network environment, which brought our users' industry leading image quality effects and viewing experiences. We also introduced a competition data analysis system for this event that instantly captured each data point and converted the data into a visual presentation allowing viewers to see real-time changes in teams and players with win rates.
Speaker Change: <unk>.
Speaker Change: We optimized our tournament broadcast audio and video technology for the event, providing a variety of HDR video quality options to street users' various devices and network environment, which brought our users industry leading.
Speaker Change: Image quality effects and viewing experiences.
Speaker Change: We also introduced competition data analysis system or less events that instantly capture each data point and convert it to data into visual presentation, allowing viewers to see real time changes in teams and prayers with win rates.
Unknown Executive: while they watch the competition. Also, in addition to our official streams, popular broadcasters and professional players on our platform created secondary live commentary for the event, providing our users with more diverse and entertaining tournament viewing experience unique to HUYA. Based on our initial statistics We maintained our leading market share of this event's viewership and further increased our market share year-over-year significantly ahead of other live streaming platforms. In terms of in-house content, we broadcasted over 20 self-organized esports tournaments and entertainment PGC shows in the third quarter. For example, we successfully hosted the HOK Streamer League in collaboration with two other major live streaming platforms to rave reviews across platforms. We also continued our Village Games series for community participation and hosted the Zhoushan Village Games for Honor of Kings.
Speaker Change: While they watch the competition.
Speaker Change: Also in addition to our offshore streams popular broadcasters and professional players on our platform for secondary live commensurate for the event, providing our users with more diverse and entertaining tune them and viewing experience unique to <unk>.
Speaker Change: Based on our initial stated sticks.
Speaker Change: We maintained our leading market share of risk events viewership and further increased our market share year over year significantly ahead of our other live streaming platforms.
Speaker Change: In terms of in house content.
Speaker Change: We broadcasted over 20 sales organize esports tournaments and entertainment PDC shows in the third.
Third quarter for example, we suspect slowly hostage.
Okay, Jim or league in Corporation with two other major live streaming platforms to rave reviews across platforms. We also continue our various game series for community participation and hostage.
Speaker Change: Joel some vintage games for honour of Kings. Additionally, we collaborated with well no TV program to produce jimmer Rod rush forward.
Unknown Executive: Additionally, we collaborated with well-known TV programs to produce Streamer Rush Forward, a reality show featuring our game and entertainment broadcasters, which attracted strong user interest.
Show, featuring our game and entertainment and broadcasters.
Speaker Change: Which attracted strong user interest.
Unknown Executive: Thank you for watching! For competing to the end, our interactive game play variety show that integrates game promotion and entertainment content, we covered more hot and new games in this quarter, such as H.O.K.'s new mod, Black Mesa Wukong Naruto Mobile. Given that our in-house content generally delivers good ROI performance, we are strengthening our investment in this area to create more influential and commercially valuable event IPs.
Speaker Change: For competing truly and our interactive game play variety show that in key rate.
Speaker Change: <unk> promotion and entertainment content, we covered more hot and new games in this quarter, such as etch <unk> new mode.
Speaker Change: Ms <unk>.
<unk> mobile.
Given that our in house content generally Teva delivers to good performance.
Speaker Change: Performance, we are strengthening our investment in this area to create more influential in commercial commercially valuable event IP.
Unknown Executive: As our range of in-house content expands and becomes more diverse, we will also focus on scheduling these programs to seamlessly integrate with our licensed events to better complement and enrich our professional content library. For example, following the conclusion of LOL World 2024, we commence season two of our LOL Legend Cup, building on the success of its inaugural season in May.
Speaker Change: As our range of in house content expense and become more diverse. We will also focus on scheduling these programs to seamlessly integrate with our license events to better compression and enrich our professional content library.
Speaker Change: For example, following the conclusion of.
Speaker Change: <unk> was 22 before we commence season two of our <unk> Legend Cup building on the success of.
Speaker Change: Yes.
Speaker Change: Zero.
Speaker Change: And in May.
Unknown Executive: Finally, we continue to explore innovative features to engage users and enhance interaction while differentiating HUYA's live streaming experience. including product cooperation with leading game titles. For example, in the third quarter, HUYA became the first platform in the industry to integrate Honor of Kings fully chatting game play mode in live broadcast, adding both native feature and platform exclusive modification developed by HUYA using Honor of Kings tools. In this mode, viewers can activate special skill cards that impact the live game by sending bullet chats or visual GIFs to the channel, creating unique game play situation that drive more interesting live streaming content.
Speaker Change: Finally, we continue to explore.
Innovative features to engage users and enhance interaction while.
Speaker Change: Differentiating we ask live streaming experiences.
Speaker Change: Including product cooperation with leading game titles for example in the third quarter, we became the first platform in the industry to integrate of honour of Kings bullet chatting game play mode in live broadcast adding both native feature.
Speaker Change: And platform explosive modification developed five we are using honour of kings tools.
Speaker Change: In this mode viewers can activate special skill cost that impacted live game by sending Polish chest or video gifts to the channel for <unk> unique game play situation, that's drive more interesting live streaming content.
Speaker Change: Given lease Peters comes we will continue to leverage <unk> expertise in creating engaging game live streaming content to bring entertaining a corrosive features to our streamer and users.
Unknown Executive: Given this feature's promise, we will continue to leverage HUYA's expertise in creating engaging game live streaming content to bring entertaining, inclusive features to our streamers and users.
Unknown Executive: Looking ahead, we will remain focused on fostering our in-house content initiatives. We are especially excited about Season 2 of our self-produced Legend Cup and look forward to amplifying this series' success and influence. We will also deepen collaboration with content creators and industry partners to extend our content reach beyond the HUYA platform and explore Broader cooperation with more game developers and publishers to expand our presence in the game market. We are confident these efforts will unleash new commercialization opportunities, preparing our long-term business development.
Speaker Change: Looking ahead, we will remain focused on fostering our in house content initiatives.
Speaker Change: Especially excited about season, two of our sales produce legend car and look forward to.
Speaker Change: Buying these theories suggest an influence.
Speaker Change: We will also deepen collaboration with content creators and industry partners to extend our content reach beyond that we are a platform and if pro Brock.
Speaker Change: Broader cooperation with more game developer.
Speaker Change: And publisher to expand our presence in our game market.
Speaker Change: We are confident these efforts will unleash new commercial adjacent opportunities for repairing our long term business development.
Junhong Huang: With that, I will now turn the call over to our Acting Co-CEO and CFO, Raymond Lei, who has been with us for a few months. He will share more details on our results.
Speaker Change: That I will now turn the call over to our acting CEO and CFO Raymond Li.
Who has been with us for few months, we will.
Raymond Li: We'll share more he will share more details on our readout Raven. Please go ahead. Thank you.
Raymond Lei: Raymond, please go ahead.
Raymond Lei: Thank you, Vincent.
Raymond Lei: Hello, everyone. I'm delighted to be part of HUYA's management team and to speak with you for the first time. I'll start with an overview of our financial performance. Our total net revenues were RMB 1.54 billion in the third quarter of 2024. The soft macro and industrial environment, which impacted users' willingness to pay for live streaming, continue to weigh on our live streaming revenues. Meanwhile, we proactively adjusted our business structure to support our strategic transformation and maintained prudent operations. Game Related Services Advertising and other businesses showed strong momentum and made a more meaningful contribution to our top line.
Speaker Change: And Hello, everyone.
Speaker Change: I'm delighted to be part of we as a management team and to speak with you for the first time.
Speaker Change: Start with an overview of our financial performance.
Our total net revenues were RMB 154 billion in the third quarter of 2024, thus soft macro and the industrial environment, which impacted the users' willingness to pay for live streaming continue to weigh on our live streaming revenues.
Speaker Change: Meanwhile, we proactively adjusted our business structure to support our strategic transformation and have maintained prudent operations.
Speaker Change: Payment related services.
Advertising and other businesses showed strong momentum and have made a more meaningful contribution to our top line.
Raymond Lei: Increasing by 209.3% year-over-year and 32.9% quarter-over-quarter, primarily due to increased revenue from game distribution and Advertising Services, and in-game item sales. We are pleased to see more users paying for our game-related services, driving growth of 9.5% year-over-year in paying users to reach 4.6 million in the third quarter. Also, our continuous efforts to improve operational efficiency paid off, with total operating expenses decreasing by 20.9% year-over-year.
Increasing by 209, 3% year over year, and 32, 9% quarter over quarter, primarily due to increased revenue from game distribution and.
Speaker Change: Edward advertising services and the in game item sales.
Speaker Change: We are pleased to see more users paying for our gaming related services driving growth of nine 5% year over year in paying users to reach $4 6 million in the third quarter.
Speaker Change: So our continuous efforts to improve operational efficiency paid off with total operating expenses decreasing by 29% year over year.
Raymond Lei: I'd also like to review our recent progress in optimizing our content. We continue to refine our street procurement strategy for licensed content, striving for better commercial terms. As we disclosed in September, we entered into a second supplemental license agreement for a series of League of Legends matches that decreased the license fee, which we believe will help us further reduce our overall esports license costs this year and in 2025. Let's move on to more details of our Q3 financial results. Our total net revenues were RMB 1.54 billion for Q3, of which live streaming revenues were RMB 1.13 billion.
Speaker Change: I'd also like to review our recent progress in optimizing our content.
Speaker Change: We continue to refine our street procure message strategy for licensed content.
Speaker Change: Striving for better commercial terms.
Speaker Change: We disclosed in September we entered into a second supplemental license agreement for a series of Nick of legend matches.
That decrease the license fee.
Speaker Change: We believe will help us further reduce our overall esports licensed cost this year in 2025.
Speaker Change: Let's move on to more details of our Q3 financial results.
Speaker Change: Our total net revenues were RMB one five.
Speaker Change: $5 4 billion for Q3 of which live streaming revenues were RMB, one <unk> opinion.
Raymond Lei: And the game-related services, advertising, and other revenues were RMB 410 million, compared with total net revenue of RMB 1.66 billion for the same period last year. Cost of revenues decreased by 6% year-over-year to RMB 1.33 billion for Q3, primarily due to Decreased Revenue Sharing Fees and Accounting Costs, as well as Davis and Silver Custody Fees. Revenue sharing fees and the content cost decreased by 5% year-over-year to RMB 1.17 billion for Q3. Primarily due to decreased live-streaming revenue sharing fees associated with the decline in live-streaming revenues, as well as lower costs related to licensed esports content.
Speaker Change: Entertainment related services advertising and other business or other revenues were RMB $410 million compared with total net revenue offshore renminbi, one 6 billion for the same period last year.
Speaker Change: Cost of revenues decreased by 6% year over year to <unk>, one <unk> 3 billion for Q3.
Speaker Change: Barry needs to do to.
Speaker Change: Decreased revenue sharing fees and content costs.
Speaker Change: As babies in the server custody fees.
Speaker Change: Revenue sharing fees and content costs decreased by 5% year over year to renminbi, one <unk> 7 billion for Q3.
Speaker Change: Similarly, due to decreased our live streaming revenue sharing fees associated with that decline in live streaming revenues.
Speaker Change: Well as to lower costs related to licensed esports content.
Raymond Lei: Partially offset by increased game related services, advertising, and other revenue sharing fees. Bandwidth and server custody fees decreased by 26% year-over-year to RMB61 million for Q3. primarily due to continued technology and the management enhancement efforts, as well as favorable pricing terms. Gross profit was RMB200 billion. and 4 million for Q3, compared with RMB 243 million for the same period last year. Gross margin was 13.2% for Q3, compared with 14.6% for the same period last year. The change was primarily attributable to increased revenue sharing fees and the common cost as a percentage of total net revenues.
Speaker Change: Partially offset by increased gaming related services advertising and other revenue sharing fees.
Speaker Change: Bandwidth and custody and server custody fees decreased by 26% year.
Speaker Change: Year over year to <unk> 1 million for Q3.
Primarily due to continued technology and management and enhancement efforts.
Speaker Change: As favorable pricing terms.
Gross profit was <unk> 200.
And 4 million for Q3, compared with RMB $243 million for the same period last year.
Speaker Change: Gross margin was 13, 2% for Q3 compared with 14, 6% for the same period last year.
Speaker Change: The change was primarily attributable to increased revenue sharing fees and content costs as a percentage of total net revenues.
Raymond Lei: Which rose mainly because the decrease in live streaming revenues outpaced the decrease in content cost. Excluding share-based compensation expenses, non-GAAP gross profit was RMB207 million, and the non-GAAP gross margin was 13.5% for Q3. Research and development expenses decreased by 12% year-over-year to RMB126 million for Q3. Primarily due to decreased personal related expenses and share-based compensation expenses. Sales and marketing expenses decreased by 30% year-over-year to RMB73 million for Q3, primarily due to decreased marketing and promotion fees as well as personal related expenses. General and administrative expenses decreased by 25% year-over-year to RMB50 million for Q3. Primarily due to decreased professional service fees and personal related expenses.
Speaker Change: <unk> rose mainly because the decrease in live streaming revenues outpaced a decrease in content costs.
Speaker Change: Executing share based compensation expenses.
Speaker Change: GAAP gross profit was <unk> 200, and the $7 million.
Speaker Change: And the non-GAAP gross margin was 13, 5% for Q3.
Speaker Change: Research and development expenses decreased by 12% year over year to <unk> 126 million for Q3 <unk>.
Speaker Change: Primarily due to decreased personnel related expenses and share based compensation expenses.
Speaker Change: Sales and marketing expenses decreased by 30% year over year to Renminbi 73 million for Q3, primarily due to decreased marketing and promotion fees as well as personnel related expenses.
Speaker Change: General and administrative expenses decreased by 25% year over year to renminbi 50 million for Q3.
Speaker Change: Primarily due to decreased professional service fees and personnel related expenses.
Raymond Lei: Other income was RMB13 million for Q3 compared with RMB40 million for the same period last year, primarily due to realized damages received in the third quarter of 2023 from a favorable outcome in a broadcaster-related lawsuit and lower government subsidies. As a result, operating loss was stable at RMB 32 million for Q3 compared with the same period last year. Executing share-based conversation expenses and the application of intangible assets from business acquisition, non-GAAP operating loss was RMB13 million for Q3 compared with RMB15 million. Minyan for the same period last year. Lung Depth Operating Margin was negative 0.9% for Q3.
Speaker Change: Other income was RMB 13, 13 media media for Q3, compared with <unk> 40 million for the same period last year, primarily due to realized damages received in the third quarter of 2023 from a favorable outcome in our product costs.
Speaker Change: Related lawsuit.
Speaker Change: The lower government subsidies.
Speaker Change: As a result.
Operating loss was stable at the renminbi set.
Speaker Change: $32 million for Q3, compared with the same period last year.
Speaker Change: Executing share based compensation expenses, and the amortization of intangible assets from business acquisitions.
Speaker Change: GAAP operating loss was RMB 13 million.
Speaker Change: For Q3 compared to <unk>.
Speaker Change: 15.
Speaker Change: <unk> for the same period last year.
Speaker Change: non-GAAP operating margin was selected 0.9% for Q3.
Raymond Lei: Interest income was RMB97 million for Q3, compared with RMB128 million for the same period last year. Ritchie was primarily attributable to the special cash dividends paid in May and October 2024. Net income attributable to HUYA, Inc. was RMB24 million for Q3 compared with RMB11 million for the same period last year. Excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets from business acquisitions. Net of Income Taxes, non-gap net profit attributable to HUYA Inc. was RMB78 million for Q3. compared with RMB107 million for the same period last year. Line Gap Net Margin was 5.1% for Q3.
Interest income was RMB 97 million for Q3, compared with <unk> hundred $28 million for the same period last year.
Speaker Change: Which was primarily attributable to the special cash dividend paid in May and October 2024.
Speaker Change: Net income attributable to <unk>, Inc.
Speaker Change: Versus LNG 24 million for Q3, compared with RMB 11 million for the same period last year.
Speaker Change: Executing share based compensation expenses impairment loss of investments and the amortization of intangible assets from business acquisitions.
Speaker Change: After income taxes, non-GAAP net profit attributable to <unk> versus <unk> 78 million for Q3.
Speaker Change: Paired with Renminbi 107 million for the same period last year.
Speaker Change: non-GAAP net margin was five 1% for Q3.
Raymond Lei: Diluted Net Income per ADR was RMB 0.1 for Q3 9 GAP diluted net income per ADS was RMB 0.34 for Q3 As of September 30, 2024, the company had cash and cash equivalents, short-term deposits, short-term investments, and long-term deposits of RMB 8.1 billion compared with RMB 8.2 billion as of June 30, 2024.
Speaker Change: Diluted net income per ads.
Speaker Change: Whereas in E&P.
0.1 for Q3 non.
non-GAAP diluted net income per ads was <unk> be.
Speaker Change: 0.3 for Q3.
Speaker Change: As of September 30 change a change for the company had cash and cash equivalents short term deposits short term investments and long term deposit of renminbi, eight 1 billion compared with <unk> eight 2 billion as of June 30 <unk>.
Speaker Change: Paul.
Raymond Lei: Finally, An update on our shareholder returns. As of the end of September 2024, we had repurchased US$61.1 million of HUYA shares through our share repurchase program. The two special cash dividends we paid this year also retained an aggregate value of approximately U.S. dollar 400 million to our shareholders. We remain committed to consolidating our financial and operating performance and creating more value for shareholders.
Speaker Change: Finally.
Speaker Change: An update on our shareholder returns.
Speaker Change: So for the end of September 2024, we had repurchased U S dollar $31 1 million of our shares.
Speaker Change: Through our share repurchase program.
Speaker Change: The two special cash dividends, we paid this year also returned an aggregate value offer across metered any.
Speaker Change: U S dollar 400 million to our shareholders.
Speaker Change: We remain committed to consolidating our financial.
Speaker Change: Operating performance at <unk>.
Creating more value for shareholders.
Unknown Executive: With that, I'd like to open the call to your questions.
Speaker Change: With that I'd like to open the call to your questions.
Unknown Executive: Thank you, 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 a person's meeting or VOOC meeting application, please click the raise hand button at the bottom left.
Speaker Change: Thank you David.
Speaker Change: Hello, everyone.
Speaker Change: <unk>. Please press <unk> to ask that question.
Amit: Thanks, Amit.
Amit: Wholesale.
Setting the Qualcomm does that mean.
Amit: Although metering applications. Please.
Amit: 10000.
Amit: Yes.
Unknown Executive: For the benefit 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.
Amit: For the benefit of all participants on today's call.
Amit: Can you ask your questions to management in Chinese.
Speaker Change: We definitely will take your question in English.
nelson chong: Today's first question comes from Nelson Chong from Citibank Nelson, your line is open. Please go ahead.
So that's that's the question comes from now.
Speaker Change: <unk> central.
Speaker Change: Citibank.
Speaker Change: Your line is open. Please go ahead.
Speaker Change: Oh wait wait.
nelson chong: Hello, thank you Mr. Huang, Mr. Lei, and Mr. Hanyu for accepting my question. My question is about the game-related services. I would like to ask about the current game-related services.
Speaker Change: <unk> Oh go Nathan.
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Speaker Change: When Tito listen until the settlement to be in Wuxi, and you'll see Shang Guang Yang.
Unknown Executive: Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A So let me translate the question myself. So thanks management for taking my question. My question is related to the game related services. Wondering if management can share the latest updates on the game related services in third quarter and any new updates in fourth quarter right now. And how do we perceive the upcoming development plans for this business into 2025 and what would be the comparative advantage of HUYA?
Speaker Change: Thank you to the existing debt.
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Speaker Change: Mr. Zhu hotels Zumba titles.
Speaker Change: When you say.
Speaker Change: The computing taxonomy that youll soon so.
Speaker Change: So let me translate the question myself.
Speaker Change: So thanks management for taking my question. My question is related to take emulator services.
Speaker Change: Management can share the latest update on the game related services in fourth quarter, and any new update for quarter right now and how do you perceive the.
Speaker Change: The upcoming development claims for at this business into 2025, and what would be the comparative advantage of.
Unknown Executive: Thank you.
Speaker Change: Thank you.
Unknown Executive: Thank you for your question, Nilsson. I will answer this question. In the third quarter, game-related services and services continue to grow rapidly. Game-related services, ads, and other business revenue reached $4.1 billion. The growth rate was 209.3%. The return on investment grew by 32.9%. This is a new high for our revenue. The return on investment was 26.7%. In the third quarter, our game-related business contributed continued to achieve rapid growth, with revenues from game-related services, advertising and others reaching R&D 410 million, an increase of 209.3% year-over-year and 32.9% quarter-over-quarter. This accounted for a record high percentage of our total revenue at 26.7%.
Speaker Change: Okay.
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Speaker Change: In the third quarter, our game related business contributed continue to achieve rapid growth with revenues from game related services advertising and others, reaching RMB $410 million an increase.
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Unknown Executive: In terms of game distribution, we have been working closely with game manufacturers to update the new game and carry out related operations. We have also encouraged broadcasters to participate in the distribution of our games. At present, distribution revenue is the largest part of our game-related revenue. Here I would like to point out that the revenue of our game distribution is mainly determined after the game manufacturers have divided the revenue. In other words, it is determined based on the amount of revenue. In fact, the scale of the actual business flow and the amount of growth are larger.
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Unknown Executive: In the third quarter, the total game flow through HUYA's distribution channels was more than 20 times that of last year. Next, we plan to continue to provide more game distribution services, including mobile games, online games, new games, and some games that are already available. We also plan to deepen cooperation with more game manufacturers. In addition, we also plan to carry out more targeted operations for broadcasters, to encourage broadcasters to provide more customized user services to increase users' interest and participation in the exploration of HUYA platforms and game distribution. With regard to game distribution, we closely collaborated with game developers on new game launches, version updates, and related operational activities, incentivizing broadcasters to participate in game distribution services.
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Speaker Change: With regard to the game distribution, we closely collaborated with game developers on new game launches action updates and related operational activities and sanitizing broadcasters to participate in game distribution services.
Unknown Executive: Currently, the distribution revenue is the largest portion of our GIM related services revenue. It is worth noting that distribution revenue is recognized on a net basis after the revenue sharing with the game developer. Therefore, the actual business volume and growth amount are significantly larger. In the third quarter, the total gross receipts from games distributed through HUYA's distribution channel increased to over 20 times that of the same period last year. And going forward, we plan to continue providing distribution services for more games, including mobile and PC games, new and existing titles, and deepen our collaboration with additional game developers.
Speaker Change: Currently the distribution revenue is the largest portion of our game related services revenue.
Speaker Change: It is worth noting that distribution revenue is recognized on a net basis. After the revenue sharing with the game developers therefore, the actual business volume and growth alone are significantly larger.
Speaker Change: And the third quarter the total gross receipts.
Speaker Change: Anticipated, we ask distribution channel increased to over 20 times.
Speaker Change: Thank you Ed asked here and going forward, we plan to continue providing distribution services, who are again, including mobile and PC games, new and existing titles and deepen our collaboration with additional game developers.
Unknown Executive: Furthermore, we plan targeted initiatives for broadcasters to encourage them to provide more customized user services, enhancing users' interest in exploring and engaging with the GAMs distributed throughout platforms. We have also strengthened our cooperation with the main game in the sales of props, especially the launch of game props exclusive to the platform and streamers, and the promotion of game props in the form of the first-ever activity. In the third quarter, we launched the game skin exclusively for HUYA at the activity of Crossfire, and a well-known streamer on our platform launched the game skin exclusively for the first time, and sold it in his live broadcast room.
Speaker Change: Furthermore, we plan targeted initiatives for broadcasters to encourage them to provide more customized user services.
Speaker Change: Has any instance interest in exploring and engaging with again distributed.
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Unknown Executive: These two activities have aroused the user's enthusiastic response. Especially in this first activity, the total value of the game skin purchased by our users in the live broadcast room of this streamer is more than 50 million yuan. This also confirms the potential of HUYA's development in the sales of props. In terms of game advertising, we also launched a promotion activity for the new game and a mid-anniversary activity for the existing game for the higher game marketing needs of the season, and through the content of the platform's streamer and content of the system, we have strengthened our game promotion and marketing ability to continue to expand our advertising customer base.
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Unknown Executive: We have also strengthened our cooperation with major games and the in-game item sales, particularly by launching exclusive and customized in-game items for our platform and broadcasters, as well as promoting initial release events for these items. For instance, in the third quarter, we held a crossfire event offering HUYA exclusive game skins. We also had an exclusive initial release of co-branded game skins featuring a well-known broadcaster. Sold in that broadcaster's stream, those initiatives garnered enthusiastic response from our users, especially during the initial release where the total value of co-branded skins sold existed 50 million. Yuan, and validating the growth potential of our in-game item sales business.
Speaker Change: We have also strengthened our cooperation with <unk>.
Speaker Change: And in game items, now, particularly by launching exclusive and customized in game items for our platform and broadcasters as well as promoting and national release events.
Speaker Change: For instance in FX point are we held in cross fire event offering.
Lewis's games.
Speaker Change: We also had an exclusive and nationally lease co branded games games, featuring a well known well cost.
Speaker Change: So the industrial customers screen.
Speaker Change: With the initiatives <unk> enthusiastic response from our users and especially during the initial release event, we had a total value of <unk>.
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Speaker Change: Yeah, and validating the growth potential.
Speaker Change: In game item sales business.
Unknown Executive: And in terms of game advertising, we responded to the increased marketing demand during the summer with promotional activities for new game launches and anniversary events for existing games, enhancing our game promotion and marketing capabilities through streamer-created and in-house produced content, while continuing to expand our advertiser base.
Speaker Change: And in terms of Latam advertising, we responded to the increased marketing demand during the summer when.
Speaker Change: Promotional activities for new game launches.
Speaker Change: Actually bounce for existing games, enhancing our game promotion and marketing capabilities.
Speaker Change: <unk> had an in house produced content.
Speaker Change: Continuing to expand our advertiser base.
Unknown Executive: In general, we think that HUYA's continued development of game related business has the following advantages. First, on the HUYA platform, we have high-quality game users. The per capita payment of many games that we participate in and distribute among the users of the HUYA channel, which is APU, is higher than that of the entire game market. This also proves that game users on the HUYA platform have higher commercial value potential. Second, our anchors play a very active role in promoting the development of game-related services. These anchors understand the needs of users for games, and the anchors can also participate in the entire income distribution process, which also helps to achieve multidimensional supply.
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Unknown Executive: Thirdly, HUYA has established a long-term cooperation relationship with various game manufacturers. This has laid a solid foundation for our further expansion of game distribution, product sales, and other deeper cooperation. In addition, we are currently strengthening cooperation and linkage with multiple content platforms, and selectively distribute game live streaming and video content on HUYA to multiple products and other content platforms in Tencent's ecosystem. According to our estimates, in September this year, the total number of users in the entire HUYA content ecosystem exceeded 1.4 billion, including the mobile end users of HUYA itself and the number of users of other platforms. And we expect this scale to continue to grow.
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Unknown Executive: As we work with effective platforms to cover a wider range of game users, we can also explore more business opportunities.
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Unknown Executive: Overall, we believe HUYA has several key advantages in the continued development of game related services. First, we have a high-quality gaming user base on our platform, where the average revenue per user, or RO, for several games we distribute is higher than the overall gaming market, indicating the commercial value potential for HUYA's gaming users. Second, our broadcasters play an active role in promoting game-related services, understanding users' gaming needs, and participating in revenue sharing, which helps achieve mutual benefit. And third, HUYA has established long-term partnerships with various game developers through our livestream business, laying down a good foundation for deeper collaboration on game distribution and in-game item sales.
Although we believe we have several key advantages in the continued development and related services.
Speaker Change: First we have a high quality gaming user base on our platform.
Speaker Change: Where are the average revenue per user or alcohol or several games, we distribute is higher than the overall gaming market, indicating the commercial value potential we asking.
Speaker Change: Gaming users.
Speaker Change: And our broadcasters play an active role in promoting game related.
Speaker Change: Understanding Houston, Skinny and participating in revenue sharing which helps achieve mutual benefit.
Speaker Change: Third we are has established long term partnerships with various game developers.
Speaker Change: Screen business laying down a good foundation for a deeper collaboration on gaining distribution and in game items.
Unknown Executive: Additionally, we are strengthening our collaboration with multiple content platforms and selectively distributing HUYA's game live streams and video content across Tencent ecosystem and other content We estimated that as of September this year, HUYA's content ecosystem reached over 140 million users, including our own mobile users and those from other platforms. And we expect the scale to continue to grow. As we effectively collaborate to cover a broader game audience, we can explore more commercialization opportunities.
Speaker Change: Generally we are strengthening our collaboration with multiple content platforms and selectively distributing <unk> live screens and video content across Tencent ecosystem and other content.
Speaker Change: We estimated that SLS in Canada this year.
Speaker Change: We have content ecosystem reached over 140 million users, including our own mobile users and those from other platforms and we expect discounts continue to grow.
So effectively collaborates to cover a broader audience, we can explore more commercialization opportunities.
Unknown Executive: Finally, I would like to mention that due to the close connection between game-related services, especially game distribution and revenue, and the game itself, as we gradually expand our business, the income may be affected to some extent by the seasonal impact of the gaming industry. For example, the summer is the peak season of the gaming industry, and there may be some fluctuations in the changes between seasons. According to the public statistics, the sales revenue of the domestic gaming market in the past two or three years has exceeded 300 billion yuan. Overall, HUYA's participation in the gaming market space is still very large.
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Unknown Executive: We will continue to explore and cooperate with more game manufacturers in various forms to realize the development of our entire business. Finally, I want to mention that since the revenue from game related services, especially from distribution, is closely linked to gaming revenue itself, as we gradually expand those business Its income may be somewhat affected by the seasonal nature of the gaming industry. For example, peak seasons occur during holidays and fluctuations can vary between quarters. According to public statistics, the domestic gaming market sales revenue exceeded RMB 300 billion in 2023. And overall, the market space for HUYA is still enormous.
Speaker Change: Thompson <unk> licenses enrollments in the year with our product.
Speaker Change: Finally, I want to mention that says that revenues game related services, especially from distribution is closely linked to gaming revenue itself as we gradually expand this business.
Speaker Change: Income may be somewhat affected by the seasonal nature of the gaming industry.
Speaker Change: Example, peak seasons during holidays and populations can vary between quarters.
Speaker Change: According to public statistics, the domestic gaming market sales revenue exceeded RMB $300 billion in 2020 and overall the market space for who we are as it's still enormous.
Unknown Executive: We will continue to explore diverse forms of cooperation with more game developers to achieve business growth.
Speaker Change: We will continue to explore a diverse forms of cooperation with more game developers to achieve business as well.
Speaker Change: Okay. Thank you.
Thomas Chong: And our next question comes from Thomas Chong from Jefferies. Hi, Thomas. Please go ahead.
Speaker Change: And our next question comes from.
Speaker Change: <unk> from Jefferies.
Speaker Change: Please go ahead.
Speaker Change: Okay.
Unknown Executive: Sponsored ADR Class A OK, thanks for Thomas' question. I will answer it. In the 3rd quarter, our live income has been affected by the current macroeconomic and industrial environment. The user's desire for reward is still weaker.
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Unknown Executive: At the same time, we are actively adjusting the entire business structure during the entire strategic transformation of the company, and maintaining a more savvy operating strategy. At the same time, we can also see a rapid growth in game advertising revenue. From the user's point of view, the core user's participation in the live business is still very stable. In the third quarter, our live streaming revenue continued to be influenced by the current macroeconomic and industry environment, with users' willingness to spend on tipping remained weak. Meanwhile, during our strategic transformation, we proactively adjusted our business structure and maintained a prudent operational strategy.
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Speaker Change: And the third quarter, our livestreams revenue continue to be influenced by the current macroeconomic and industry environment with the users and willingness to spend on keeping remained weak. Meanwhile, during our strategic transformation we proactively.
Speaker Change: Tested our business capture and maintain a prudent operational strategy.
Unknown Executive: However, we have also observed rapid growth in revenues related to game advertising. From user behavior, we see that the engagement of our core users in live streaming remained relatively stable. Due to the impact of the external environment, we expect that the live income will be under pressure in the short term. We believe that with the improvement of the external environment in the future, the business will still have some room for flexibility.
Speaker Change: However, we have also observed rapid growth and revenues related to advertising.
Speaker Change: User behavior, we see that the engagement for users in live streaming remained relatively stable.
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Unknown Executive: On the one hand, we will also pay close attention to the market situation in order to make timely adjustments to the business operations activities. At the same time, we will continue to pay attention to the investment in live content, optimize the live broadcast and user ecology. We will also continue to improve the technology and products to create a differentiated HUYA live experience. We hope to maintain and improve the activity of users and prepare for a more diversified commercial form in the future.
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Unknown Executive: In the long run, we expect that with the expansion of game-related services, ads and other income scales, the overall business will achieve a more stable development in the future. Due to external factors, we currently expect live streaming revenue to face short-term pressure. However, we believe that the external economic environment improve will happen in the future, and the business will still have some room for flexibility. On one hand, we will closely monitor market conditions to adjust our operational activities accordingly. On the other hand, we will continue to invest in live streaming content, optimize the broadcaster and user ecosystem, and constantly improve the technology and products to create a differentiated HUYA live streaming experience.
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Speaker Change: Due to external factors. We currently expect live streaming revenue to face short term pressure. However, we believe that the external economic environment inches really.
Speaker Change: Will it happen in the future and the business will still have some room for snacks.
Speaker Change: On one hand, we will closely monitor market conditions to adjust our operational activities. Accordingly on the other hand, we will continue to invest in live streaming content.
Speaker Change: Oppenheim broadcaster and using the Apple system and constantly improve their technology and products to trade and differentiated <unk> live streaming experience.
Unknown Executive: We hope to maintain and enhance user engagement to prepare for a more diversified commercialization forums in the future. In the long run, we expect that with the expansion of game related services, advertising and other revenue cells, the overall business will achieve relatively stable development.
Speaker Change: We hope to maintain and enhance user engagement to prepare.
Speaker Change: Paraguay and more diversified commercialization plans in the future.
Speaker Change: In the long run we expect that with the expansion of Tim related services advertising and other revenues.
Speaker Change: <unk> business will achieve relatively stable.
Speaker Change: Thank you.
Unknown Executive: Thank you. Now we will take the next question.
Speaker Change: Well take our next question.
Lei Zhang: It's from Lei Zhang from Bank of America. Hi, Lei. Please go ahead. Hi Guan Yifeng, good evening. Thank you for accepting my question. My question is mainly about profit. Can you share with us the main driving factors of Q3's overall profit margin, and how do we look at the future profit margin trend?
It's from <unk>, Zhang from Bank of America, Hi, Lee.
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Lei Zhang: I will translate it myself. Thank you, my name is Yifan, for taking my question. Can you give us more color on the driver of Q3's margin change, and how should we look at our margin trend going forward?
Speaker Change: Thank you Beth Thank Manny menthol, taking my question can you give a basketball color on the driver of our Q3 margin.
Speaker Change: And how should we look at our margin going forward. Thank you.
Unknown Executive: I will answer this question. Thank you, Zhang Lei. In the third quarter, HUYA's毛利率 was 13.2%, which was slightly lower than in the second quarter and the same period last year. Sponsored ADR Class B In terms of operating expenses, by continuing to work hard to improve operating efficiency, especially better control of sales expenses, the total operating expenses have been reduced by 20.9%.
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Unknown Executive: 因此, Because of this, Sponsored ADR Class A Sponsored ADR Class A In the third quarter, our gross profit margin was 13.2%, slightly down from the second quarter and the same period of last year. This quarter, we continued to optimize our content costs, reducing broadcaster signing costs year over year, and we further improved our strict licensed content procurement strategy to secure better commercial terms, which saved on licensed content costs. However, the cost savings this quarter was still insufficient to offset the impact of the declining of live stream revenue. In terms of operating expenses, through continued efforts to enhance operational efficiency, particularly in better controlling our sales expenses, our total operating expenses decreased by 20.9% year-over-year.
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Speaker Change: Third quarter, our gross profit margin was 13, 2% slightly down from the second quarter Amazon period of last year. This.
Speaker Change: This quarter, we continue to optimize our content costs, reducing broadcaster signing costs year over year, and we further improved our strict license to content marketing and strategy to secure better commercial terms, which saved on licensed content costs.
Speaker Change: However, the cost savings this quarter, we're still answer session just offsets the impact of the declining of my screen revenue.
Speaker Change: In terms of operating expenses to continued efforts to enhance operational efficiency, particularly in better controlling our expenses.
Speaker Change: Total operating expenses decreased by 29% year over year. Therefore overall operational performance remained relatively stable with a non-GAAP net loss of 78 million man.
Unknown Executive: Therefore, overall operational performance remained relatively stable, with a non-gap net profit of 78 million yuan.
Unknown Executive: 关于后续的利润走势,我们认为主要需要考虑以下因素的影响。一方面是整体收入规模的变化情况,包括不同业务的季节性波动。 On the other hand, we will continue to adjust to the cost structure to improve the connectivity of domestic cost and revenue. In the professional content book, in September this year, we signed the second supplementary agreement for the broadcast authorization of a series of League of Legends tournaments and reduced the related authorization costs. I believe this will help further optimize the cost of this year's and the overall copyright e-sports tournament in 2025. But in terms of season, since the large-scale S14 tournament is mainly held in the fourth quarter, the cost of the tournament will be expected to be higher than the third quarter.
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Unknown Executive: 而对于有较好的投资回报表现的自制内容,我们计划加强这方面的投入,打造更多有影响力和商业价值的SIZE IP, 比如在首届英雄联盟传奇杯获得成功的基础上,我们在这个月还将举行传奇杯的第二季。 Regarding the future profit trends, we believe the following factors will be significant. On one hand, we need to consider changes in overall revenue scale, including the seasonal fluctuations in different business On the other hand, we'll continue to adjust our cost structure to enhance the collaboration between broadcaster costs and revenue. On a professional content side, in September this year, we signed a second Supplemental Licensing Agreement for a series of legal legend matches. which reduced related licensing fees. We believe that this will help further optimize overall licensed esports events costs in the year and in this year and in 2025.
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Regarding the future profit trends, we believe the following factors will be significant on one hand, we need to consider changes in overall revenue scale, including the seasonal fluctuations in different businesses.
Speaker Change: On the other hand, well continue to adjust our cost structure to enhance the collaboration between broadcaster costs and revenue.
Speaker Change: In a professional content side and September of this year, we signed a second supplemental licensing agreement for a series of legal legend matches.
Speaker Change: Which reduced related licensing fees.
Speaker Change: We believe that this will help further optimize all licensed esports events costs in the year and in this year and in 2025.
Speaker Change: However quarter over quarter since the major <unk> event will mainly take place in the fourth quarter. The events licensing cost in the fourth quarter are expected to be higher than the fourth quarter <unk>.
Unknown Executive: However, quarter to quarter, since the major S14 event will mainly take place in the fourth quarter, the event's licensing costs in the fourth quarter are expected to be higher than the third quarter.
Unknown Executive: For self-produced content with good investment returns, we plan to strengthen investment in this area to create more influential and commercially valuable event IPs, such as holding the second season of the League of Legends Cup in this month, building on the success we have in its inauguration season. Despite this, we expect that the毛利率 in the fourth quarter will still increase significantly compared to the low level in the same period last year, so the Q4 and the full-fledged LanGeBi performance is expected to show a significant increase. Nevertheless, we expect that the gross profit margin in the fourth quarter will show a relatively noticeable improvement compared to the low base from the same period last year.
Speaker Change: Our self produced content with a good investment returns we plan to strengthen our investment in this area to create more influential and commercially valuable event Ips such as coding the second season of the league of legends.
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Nevertheless, we expect that the gross profit margin in the fourth quarter, well shell and relatively noticeable improvement compared to the low base from the same period last year. Therefore, we anticipate that our non-GAAP results for Q4 and this entire year.
Unknown Executive: Therefore, we anticipate that the non-GAAP results for Q4 and this entire year will also show a relatively noticeable year-over-year growth.
Speaker Change: Also show a relatively noticeable year over year.
Speaker Change: Thank you.
Cheng Hao Li: Now we will take our last question today from Cheng Hao Li from CICC.
Speaker Change: Now we will take our last question today.
Speaker Change: Charlie Brown SEC.
Cheng Hao Li: Cheng Hao, please go ahead. Hi, thank you for accepting my question. I have a very simple question, which is about the company's cash-use strategy and shareholder return plan. Could you please update us?
Please go ahead.
Speaker Change: Okay.
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Unknown Executive: Okay, I will translate for myself. Hi, Mr. Man, thanks for taking my question and congratulations on another solid quarter. My question is about our shareholder return strategy. Could management help update our capital allocation strategy and the shareholder return plan in the future? Thank you.
Speaker Change: I would translate for myself Hi management. Thanks for taking my question and congratulations on a solid quarter. My question is about our shareholder return strategy could management share.
Speaker Change: <unk>, our capital allocation strategy and the shareholder return plan in the future. Thank you.
Unknown Executive: Thank you, Cheng Hao. As of the end of September this year, HUYA has cash and other goods. Sponsored ADR Class A Compared to the end of June, the fund is relatively stable, and some have been affected by the change in the US dollar exchange rate.
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Unknown Executive: In October, we issued a $2.5 billion special cash stock. At present, the company still has cash and deposits worth about $900 million. About half of them are abroad. At the same time, the company has not borrowed money. As of the end of September, HUYA held approximately RMB 8.1 billion yuan, about U.S. dollars 1.15 billion, in cash and cash equivalents, which remained stable compared to the end of June, partially influenced by the fluctuations in the U.S. dollar exchange rate.
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Speaker Change: As of the end of September we are Howard approximately RMB eight 1 billion yen about U S dollars 1.15 billion in cash and cash equivalents.
Speaker Change: <unk> remained stable compared to the end of June partially influenced by the fluctuations in the U S dollar exchange rate.
Unknown Executive: In October, we paid a special cash dividend of US$215 million. Currently, the company still has approximately 900 million U.S. dollars in cash and cash deposits, with about half of it held overseas, and the company has no debt. The overall strategy used in cash is similar to what we mentioned at the last financial report meeting. At present, we have enough cash to provide funds for daily operations and business development. While consolidating the basic financial aspects, the company will continue to leave some funds for potential business development, and as a reserve fund in the absence of uncertainty in the external environment.
Speaker Change: In October we paid a special cash dividend of U S dollar $215 million.
Apparently the company still has approximately 900, mainly in U S dollars in cash and cash deposits.
Speaker Change: About half of it held overseas and the company has no debt.
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Unknown Executive: We will also maintain an open attitude to suitable opportunities and investment projects related to the industrial chain, and seize the opportunity to develop in the industry. The overall strategy for cash usage is similar to what we mentioned in the last earnings call. We have sufficient cash to fund our daily operations and business development. While consolidating our financial fundamentals, the company will continue to allocate some funds for potential business development and as a reserve under uncertain external conditions. We will also remain open to suitable opportunities and investment projects related to the industry chain, so as to seize industry development opportunities.
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Speaker Change: The overall strategy for cash usage is similar to what we mentioned in the last earnings call. We have sufficient cash to fund our daily operations and business development.
Speaker Change: Consolidating our financial fundamentals the company will continue to allocate Samsung with potential business development and as a reserve under uncertain external competition.
Speaker Change: We will also remain authentic beautiful opportunities and investment projects related to the industry churn so as to seize industry development opportunities.
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Unknown Executive: At the same time, we will continue to value shareholders' feedback. Sponsored ADR Class A Sponsored ADR Class A At the same time, we will continue to place importance on shareholder returns.
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Speaker Change: At the same time, we will continue to place importance on shareholder returns.
Unknown Executive: In terms of dividends, this year we have returned approximately 400 million US dollars to our shareholders through special cash dividends. In the future, we intend to share the company's profits and surplus cash with our shareholders. Future dividend plans, including the amounts and timing, will depend on further review and approval by the company's board of directors.
In terms of dividend. This year, we have returned approximately 400 million U S dollars.
Speaker Change: All shareholders two special cash dividend.
Speaker Change: In the future, we intend to share the company's profits and settlement of cash with our shareholders.
Speaker Change: Future dividend plans, including the announced from timing will depend on further review and approval by the company's board of directors.
Unknown Executive: Regarding share repurchases, based on our up to 100 million US dollars repurchase plan, as of the end of September, we had repurchased 61.1 million US dollars worth of HUYA shares. In the future, we will comprehensively consider market conditions and stock liquidity when formulating our execution strategy.
Speaker Change: Regarding share repurchases based on all of our up to $100 million repurchase plan as of the end of September we had repurchase 61 1 million U S dollars worth of <unk> shares.
Speaker Change: The future will comprehensively consider market conditions and stock liquidity when formulating our execution strategy.
Unknown Executive: Thank you.
Speaker Change: Thank you.
Speaker Change: Well. Thank you once again for joining US today. If you have further questions. Please feel free to contact <unk> Investor Relations.
Unknown Executive: Thank you once again for joining us today. If you have further questions, please feel free to contact HUYA Investor Relations through the contact information provided on our website or PS&T Financial Communications.
Speaker Change: Contact information provided on our website <unk> financial Communications. This concludes today's call and we look forward to speaking with you again next quarter. Thank you.
Unknown Executive: This concludes today's call and we look forward to speaking with you again next quarter. Thank you.