Q4 2025 HUYA Inc Earnings Call

March 17, 2026

Operator: Acting Co-CEO and Senior Vice President, Mr. Raymond Peng Lei, our acting Co-CEO and 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 this 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.

Hanyu Liu: Acting Co-CEO and Senior Vice President, Mr. Raymond Peng Lei, our acting Co-CEO and 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 this 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.

Our acting CEO and CFO.

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Capital market 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 19.

95 forward looking statements involve inherent risks and uncertainties as such the company's results may be materially different from the views expressed that they.

Further information regarding this and other risks and also currencies is included in the company's latest annual reports 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.

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Applicable law. Please also know that <unk> earnings press release, and this conference call include discussions of our audited GAAP financial information as well as our auditors non-GAAP financial measures.

Operator: Please also note that HUYA's earnings press release and this conference call include discussion 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 our Co-CEO, Mr. Huang. Please go ahead.

Hanyu Liu: Please also note that HUYA's earnings press release and this conference call include discussion 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 our Co-CEO, Mr. Huang. Please go ahead.

<unk> press release contains a reconciliation of the audited non-GAAP measures to the audited most directly comparable GAAP measures with that I'm pleased to turn they'll coach over to our co CEO. Mr. Huang. Please go ahead.

Junhong Huang: Okay. Hello, everyone, and thank you for joining our earnings call today. I'm proud to say 2025 was a record year for us. In Q4, total net revenues grew by 16% to RMB 1.74 billion, the highest in the last 10 quarters. While our live streaming business remains stable. Revenues from game-related services, advertising, and other businesses grew 59% year-over-year, demonstrating our successful transformation to the gaming space. On a full-year basis, total net revenues returned to growth and reached RMB 6.5 billion, up 7% year-over-year. In Q4, we recorded a one-off accounting provision. Excluding this provision, SBC and amortization items, we would have seen three consecutive quarters of positive growing operating profit and a full-year operating profit. A robust content ecosystem and a stable user base underpin our performance.

Okay Hello, everyone.

Thank you for joining our earnings call today.

Proud to say 20 to 25 was a record year for us.

In the fourth quarter total net revenues grew by 16% to RMB, one 4 billion the highest in the last 10 quarters.

Our large Jimmy business remained stable.

Revenues from game related services.

Rising and other businesses grew.

59% year over year, demonstrating our successful transformation to the game gaming space.

On a full year basis total net revenues returned to growth and reached RMB, six 5 billion up 7% year over year.

In the fourth quarter, we recorded an one off accounting provision.

Excluding lease provision SBC and amortization items, we would have seen three consecutive quarters of positive growing operating profit and a full year operating profit.

Our robust content ecosystem and a stable user base underpin our performance in.

Junhong Huang: In Q4, HUYA's total MAUs were approximately 160 million. We are also pleased to see our platform's influence continue to grow. In February, we welcomed the return of Uzi, one of the most legendary names in esports. Its return further validates the strength of HUYA's esports content ecosystem and our ability to attract and support top-tier streamers. The influence of our streamer ecosystem continued to expand, with more top streamers returning to HUYA and many of our streamers gaining recognition across our platforms, including WeChat Channels, Douyin, and beyond. We are no longer just a game live streaming platform, but have evolved into a content-driven integrated game services provider with broad cross-platform reach and a key strategic partner to game developers. Since our strategic transformation into games-related services in 2023, we have expanded and deepened our footprint across the industry's value chain.

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We are also pleased to see our platforms influenced continue to grow in February we welcomed the return of UGI one of the most legendary names in <unk> is to return further validates the strength of esports content ecosystem.

Our ability to attract and support top tier gymnast the influence of our streamer ecosystem continue to expand with more tops tumors returning to many of our streamers gaining recognition across our platforms, including Wechat channel.

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Platform reach and our key strategic partner to game developers.

Since our strategic transformation into a <unk> related services in 2023, we have expanded and deepened our footprint across the industry's value chain.

Junhong Huang: We have expanded beyond live streaming into a broader range of game-related services, including game distribution, in-game item sales, and game advertising, further transforming HUYA into a more integrated game-related services provider. Our entry into game publishing with the success of Goose Goose Duck Mobile marks another important milestone in this transformation. Unlike traditional publishing models that rely primarily on user acquisition, we leverage the strength of our content ecosystem and take a content-driven approach to publishing. Goose Goose Duck Mobile, launched in January, delivered outstanding results, attracting over 5 million new users within the first 24 hours and surpassing 10 million within 6 days, and has ranked number one on the iOS free game chart for the most of the time since its launch. The game quickly became a market sensation and a clear validation of our strategy.

We have expanded beyond live streaming into a broader range of game related services, including game distribution in game item sales in game advertising further transforming <unk> into a more integrated game related services provider.

Our entry into game publishing was the success of course was talk mobile marks another important milestone in the transformation.

Unlike traditional publishing model that relied primarily on user acquisition, we leveraged the strength of our content ecosystem and take content driven approach to publishing.

<unk> mobile launch in January delivered outstanding results, attracting over 5 million new users. We're seeing the first 24 hours and surpassing 10 million within six days.

And has ranked number one on the iOS free game chart for the most of the time since its launch.

The game quickly become.

Market differentiation and a clear validation of our strategy.

Junhong Huang: Since pre-registration stage, we have been working closely with top streamers across multiple platforms and produced two seasons of a live streaming variety show, Goose Goose Duck, Goose Goose Duck Night, which fueled strong social media buzz and anticipation prior to launch. We saw very strong user-generated content trending on social media as the game generated hundreds of millions of impressions and sparked over 100 social media trending moments on social platforms such as Douyin and Xiaohongshu. This content-driven marketing approach resulted in a much higher ROI that far, far exceed traditional traffic acquisition channels. This underscores our effectiveness in content-driven marketing for new game launches and maintaining traction over time. We are pleased to see that two months after its launch, Goose Goose Duck Mobile continues to stay at the top of the chart and continue to outperform our expectation in terms of user retention.

Since pre registration stage, we have been working closely with top as Jim across multiple platforms and produce two season of our live streaming variety show.

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We are pleased to see that two months after its launch <unk> mobile continues to stay at a top up the chart and continued to outperform our expectations in terms of user retention.

Junhong Huang: Most of our players for this game are college students and young working professionals with a higher proportion of iOS and female users. Looking ahead, we are excited to continue enhancing our social feature and building a stronger and more vibrant community. Monetization remains relatively limited for now as we focus on growing engagement. With major game content updates scheduled for later this year, we expect monetization to increase afterwards. The successful debut of Goose Goose Duck Mobile demonstrate the potential of our publishing strategy and give us great confidence in our next growth driver, fueled by our live streaming content ecosystem. We are excited by our strong publishing pipeline with multiple new titles coming later this year. At the same time, supported by the strength of HUYA's ecosystem, our other game-related businesses, including in-game item sales and advertising, continue to deliver solid performance.

Most of our prayers for this game are college students and young working professionals with a higher proportion of iOS and female users.

Looking ahead, we are excited to continue enhancing our social feature and building a stronger and more vibrant community monetization remains relatively limited for now as we focus on growing engagement, but which major game content update schedule for later this year.

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Of Costco stock mobile demonstrate the potential of our publishing strategy and gives us great confidence in our next growth driver fueled by our large streaming content ecosystem.

Excited by our strong publishing pipeline with multiple new titles coming later last year.

At the same time supported by the strength of <unk> ecosystem, our other game related businesses, including in game item sales and advertising continuing to deliver solid performance.

Junhong Huang: For in-game item sales, revenue continued to grow year-over-year, increasing by more than 200%, driven by new titles such as Peacekeeper Elite and CrossFire Mobile. As the business further scales, we continue to expand and deepen our collaboration with game developers. In January, we became the first platform to secure exclusive pre-sale rights for the MVP skin in Honor of Kings, which is rare for the industry. We also partnered with Arena Breakout to launch a customized bundle exclusively for overseas players, which also delivers strong sales performance. Looking ahead, we will continue to expand customized rights offerings, joint marketing, and localized partnerships across more top-tier titles to further enhance user satisfaction. On the advertising side, HUYA's content-driven marketing capabilities are also gaining broader recognition from leading game developers, including Tencent and NetEase.

For in game item sales revenue continued to grow year over year, increasing by more than 200% driven by new titles, such as peace Kieber aided and cross via mobile.

The business further scales, we continue to expand and deepen our collaboration with game developers.

In January we became the first platform to secure.

The corrosive pre sale rise for the MVP scheme in honour of Kings, which is rare for the industry. We also partnered with arena breakout through lunch customized bundle exclusively for overseas players.

Which also delivered strong sales performance.

Looking ahead, we will continue to expand customized rice offerings joint marketing and localized partnerships across the across more top tier.

Titles to further enhanced user satisfaction.

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We ask content driven marketing capabilities are also gaining broader recognition from leading game developers in grow the intention and that is in the fourth quarter. We hosted net net is fantasy westward journey mobile Who's shrunk Cup in collaboration with 32 top streamers.

Junhong Huang: In Q4, we hosted NetEase Fantasy Westward Journey Mobile, Wushuang Cup, in collaboration with 32 top streamers. This helped the game to further expand its brand awareness to younger audience through live streaming. In our esports ecosystem, we delivered solid result across both licensed and self-produced events in Q4. During the quarter, we offered users close to 100 licensed tournaments as well as around 40 self-produced tournaments and variety shows. One key highlight came in December when we hosted the Demacia Cup for the first time, one of the core professional tournaments in the League of Legends ecosystem. This also marked the first time that the official League of Legends organizer had granted hosting rights to a third-party live streaming platform.

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In our <unk> ecosystem, we delivered solid result across both licensed and self produced events in Q4 during the quarter. We offered user grows to 100 license autonomous as well as around 40 self produced tournament.

And variety shows.

One key highlight Tim in December when we a heartbeat damasio cop four the first Tom one of the core professional tournaments in the league of legend ecosystem.

This also marks the first time that the official league of legend of the Niger had granted costing wise to third party live streaming platform.

Junhong Huang: It reflects strong recognition of HUYA's event planning, operational, and content production capabilities and marks our evolution from an exclusive live streaming partner to a full-service tournament organizer. Building on our summer success, we hosted the Delta Force Diamond Champions autumn season. The event set new bars for the game in terms of both scale and viewership in Delta Force esports circuit. On the product side, we see great opportunities in the AI wave today. We have made meaningful progress in AI-powered live streaming, with this growing number of production featuring prominently on viewership charts. We have integrated AI host into our esports programs who are equipped with realistic human-like avatars and capable of professional-level commentary and interaction. This visual host engage with viewer comment in real time, fostering strong audience resonance.

It reflects strong recognition of who we ask event planning operational and content production capabilities and match our evolution from an.

A close Sip lattes streaming partner to a full service tournament organizer.

Building on our Somerset, we Hostetter, David have force Diamond Champions autumn season, the event new bass for the game in item in terms of both scale and viewership in Delta Force is passed so Pete.

On the product side, we see great opportunities in the AI wave of today, we have made meaningful progress in AI powered life's Jimmy was growing number of production featuring <unk>.

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Fostering strong audience readiness.

Junhong Huang: This has been particularly well-received among users of leading game categories such as League of Legends and CS:GO, driving longer viewing time and deeper community engagement. We are thrilled to continue exploring the latest technologies and integrating them directly into our game tools and products, creating richer and more engaging experience for our players that were not possible before. For example, in March, our Delta Force Map tool will introduce a real-time navigation feature powered by our context-aware multimodal AI capabilities, enabling smoother gameplay and more intuitive interactions. Beyond this, we are actively exploring ways to embed these technologies across additional titles, including Golden Spatula and Goose Goose Duck Mobile. On the overseas front, we remain focused on improving the product experiences and strengthening our content ecosystem, which supported steady growth in both advertising and in-game item sales.

This has been particularly well received among users of bleeding game categories, such as league of legend, and CS go driving longer viewing Tom and deeper community engagement.

We are thrilled to continue exploring the latest technologies and integrating them directly into our game tools and products, creating richer and more engaging experiences for our players that were not possible before.

For example in March out there our Delta Force Mac tool will introduce a real time navigation feature powered by our context aware multimodal AI capabilities, enabling us to move to Moshe.

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Beyond this we are actively exploring ways to embed these technologies across.

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On the overseas front.

We remain focused on improving the product experiences and strengthening our content ecosystem.

So pocket steady growth in both.

Timing and in game item sales.

Junhong Huang: We will continue to incubate new products in a flexible manner and involve our monetization strategies. We believe this will further strengthen our capabilities and momentum for scaling our overseas publishing business, as well as other monetization opportunities. Overall, marked a pivotal year for HUYA, defined by solid strategic execution and impactful milestones. From an operational perspective, we'd return to growth and further enhance our profit profile. Looking ahead, we will further scale our footprint across the entire gaming value chain. With our growth momentum on a robust and sustained upward trajectory, we are poised to embark on an ambitious new chapter of sustainable, high-quality development for HUYA. With that, I will now turn the call over to our Acting Co-CEO and CFO, Raymond Lei. He will share more details on our results. Raymond, please go ahead.

We will continue to incubate new products in a simple manner.

And in both involve our monetization strategies. We believe this will further strengthen our capabilities and momentum for scaling our overseas publishing business as well as other monetization opportunities.

Overall market.

Pivotal year for whole year.

Defined by solid strategic execution, and impactful milestones from an operational perspective, we returned to growth and further enhanced our profit profile.

Looking ahead, we will further scale our footprint across the entire gaming value chain.

With our growth momentum on our robust and sustained upward trajectory. We are poised to embark on our ambitious new chapter of sustainable high quality development for Korea.

With that I will now turn the call over to our co acting CEO and CFO Emily Hill will share more details on our results Raymond Please go ahead.

Raymond Peng Lei: Thank you, Vincent, and hello, everyone. I'll start with our Q4 results, followed by our full year financial highlights, and an update on our shareholder returns. In the Q4, we delivered accelerated top-line growth, driven by robust expansion in our game-related services and advertising businesses. However, our operating results were impacted by a one-time RMB 66 million provision, which led to a non-GAAP operating loss of RMB 36 million for the quarter. Excluding the impact of this one-time item, we continue to see improvement in our core operating performance, and the overall earning profile. Let's move on to more details of our Q4 financial results. Total net revenues were RMB 1.74 billion for Q4, up 16% from the same period last year.

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Start with our fourth quarter results.

Followed by our full year financial highlights and then update on our shareholder returns.

In the fourth quarter.

And you had accelerated topline growth.

<unk> robust expansion in our gaming related services and advertising businesses.

However, our operating results were impacted by a one time RMB 66 million provision.

Reached net to our non-GAAP operating loss of RMB $36 million for the quarter.

Excluding the impact of this one time item, we continue to see improvement in our core operating performance and the overall earnings profile.

Let's move on to more details of our Q4 financial results.

Total net revenues were RMB 174 billion for Q4 up 60% from the same period last year.

Raymond Peng Lei: Live streaming revenues were RMB 1.15 billion for Q4, up 2% from the same period last year, primarily due to higher average spending per paying user for live streaming services. The number of domestic paying users remained stable at 4.4 million for Q4. This figure excludes users who made in-game purchases through our game distribution business but didn't complete payments through our platform or related services, as well as overseas paying users. Game-related services, advertising, and other revenues were RMB 593 million for Q4, up 59% from the same period last year. The increase was primarily due to higher revenue from game-related services and advertising, which were mainly attributable to our deeper cooperation with game companies in China and overseas.

Live streaming revenues were RMB, one 5 billion for Q4 up 2% from the same period last year, primarily due to <unk>.

Average spending per pay in user for live streaming services.

Number of domestic paying users remained stable at $4 4 million for Q4.

This figure if cruise users who met in game purchases through our <unk> distribution business, but didn't compete payments through our platform our related services.

S Oss paying users.

Cable related services advertising and other revenues were RMB 593 billion for Q4.

55% from the same period last year.

The increase was primarily due to a high.

Due to higher revenue from cable related services with advertising.

Which were mainly attributable to our deepening cooperation with cable companies in China and overseas.

Raymond Peng Lei: Cost of revenues increased by 30% year-over-year to RMB 1.49 billion for Q4, primarily due to increased revenue share fees and content costs, as well as increased costs related to in-game items. Within these, revenue share fees and content costs rose by 10% year-over-year to RMB 1.28 billion, reflecting growth in our top line. Gross profit was RMB 245 billion for Q4, up 44% from the same period last year. Gross margin was 40.1% for Q4, improving from 11.4% from the same period last year. Excluding share-based compensation expenses, non-GAAP gross profit was RMB 248 billion, and the non-GAAP gross margin was 40.3% for Q4. Research and development expenses were RMB 123 billion for Q4, largely flat year-over-year.

Cost of revenues increased by 30% year over year to RMB, one <unk> billion for Q4.

Primarily due to increased revenue sharing fees at our corporate costs.

As decreased costs related to we gave items visit.

Cds revenue sharing fees and content costs rose by 10% year over year.

To add the $1 8 billion reflected growth in our top line.

Gross profit was RMB 245 billion for Q4.

44% from the same period last year gross margin was 41% for Q4, improving from 11, 4% from the same period last year.

Excluding share based compensation expenses non-GAAP gross profit was RMB 248 billion.

GAAP gross margin was 43% for Q4.

Research and development expenses were RMB 133 billion for Q4 largely flat.

Year over year.

Raymond Peng Lei: Sales and marketing expenses increased by 24% year-over-year to RMB 78 million for Q4, primarily due to increased marketing and promotional efforts, including pre-launch preparations for Goose Goose Duck Mobile. General and administrative expenses increased by 55% year-over-year to RMB 126 million for Q4, primarily due to RMB 66 million provision related to a receivable arising from 2021 arrangement with a broadcaster, which was deemed to have a heightened risk of non-recoverability. Other income was RMB 80 million for Q4 compared with RMB 4 million for the same period last year, primarily due to increased government subsidies. Operating loss narrowed to RMB 65 million for Q4 compared with a loss of RMB 93 million for the same period last year.

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Other income was RMB 80 billion for Q4, compared with RMB 4 billion.

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Operating loss narrowed to RMB 65 billion for Q4.

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Raymond Peng Lei: Excluding share-based compensation expenses and the amortization of intangible assets from business acquisition, non-GAAP operating loss narrowed to RMB 36 million for Q4 compared with a loss of RMB 69 million in the same period last year. Interest income was RMB 32 million for Q4, down from RMB 75 million for the same period last year, primarily due to a lower time deposit balance following the payment of special cash dividends. Impairment loss of investments was RMB 81 million for Q4 compared with RMB 151 million for the same period last year, primarily due to the recognition of impairment charge on the company's US investments attributable to the weak financial performance of certain investees. Net loss attributable to Huya Inc. narrowed to RMB 180 million for Q4 compared with a loss of RMB 172 million for the same period last year.

Excluding share based compensation expenses at the application of <unk> assets for business acquisition.

GAAP operating loss of desert to Rps.

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180 billion for Q4, compared with loss of RMB 172 billion for the same period last year.

Raymond Peng Lei: Excluding share-based compensation expenses, impairment loss of investment and the amortization of intangible asset from business acquisitions, net of income taxes, non-GAAP net loss attributable to HUYA Inc. was RMB 8 million for Q4 compared with non-GAAP net income attributable to HUYA Inc. of RMB 1 million for the same period last year, primarily due to the provision item and the lower interest income as stated earlier. Diluted net loss per ADS was approximately RMB 0.51 for Q4. Non-GAAP diluted net loss per ADS was RMB 0.04 for Q4. As of 31 December 2025, the company has cash and cash equivalents, short-term deposits, and long-term deposits of RMB 3.82 billion, largely flat compared to 30 September 2025. Moving on to our full year 2025 results.

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Results.

Raymond Peng Lei: Total net revenues were RMB 6.5 billion for 2025, increasing by 7% from the prior year. Live streaming revenues were RMB 4.59 billion for 2025 compared with RMB 4.75 billion for the prior year. Game-related services, advertising, and other revenues were RMB 1.91 billion for 2025 compared with RMB 1.33 billion for the prior year. Non-GAAP gross profit was RMB 884 billion for 2025, up 7% from the prior year. Non-GAAP gross margin remained flat at 30.6% for 2025. Non-GAAP net income attributable to HUYA Inc. was RMB 99 billion for 2025 compared with RMB 269 billion for the prior year.

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Raymond Peng Lei: The non-GAAP net margin was 1.5% for 2025 compared with 4.4% for the prior year. To reiterate, the decline was largely due to the provision we discussed and the lower interest income rather than any change in our core business performance. Non-GAAP diluted net income per ADS was RMB 0.43 for 2025 compared with RMB 1.15 for the prior year. Net cash used in operating activities was RMB 176 billion for 2025 compared with net cash provided by operating activities of RMB 94 billion for the prior year, primarily due to decreased interest income and the increased amount due from related parties. For additional details on our full year 2025 financial results, I encourage listeners to refer to our earlier press release issued earlier today.

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For additional details.

Details on our full year 2025 financial result, I E.

I encourage listeners to refer to our earnings press release issued earlier today.

Raymond Peng Lei: Finally, let me provide an update on our shareholder returns. To implement our 2025 to 2027 dividend plan adopted in March 2025, we are pleased to declare a 2026 special cash dividend of $0.135 per ADS or $0.135 per ADS for a total amount of approximately $31 million. In addition, under our up to $100 million share repurchase program, we had repurchased 22.9 million HUYA shares with an aggregate consideration of $75.5 million as of the end of December 2025. With that, I'd like to open the call to your questions.

Ali let me provide an update on our shareholder returns.

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With that I'd like to open the call to your questions.

Hanyu Liu: Thank you, Raymond, and hello everyone. If you are dialing in by phone, please press five to ask a question, then press six to unmute yourself. If you are accessing the phone from the conference meeting or both meeting applications, please click the raise hand button at the bottom left. 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. Today's first question comes from Rebecca Xu from Morgan Stanley. Hi Rebecca, your line is open. Please go ahead.

Operator: Thank you, Raymond, and hello everyone. If you are dialing in by phone, please press five to ask a question, then press six to unmute yourself. If you are accessing the phone from the conference meeting or both meeting applications, please click the raise hand button at the bottom left. 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. Today's first question comes from Rebecca Xu from Morgan Stanley. Hi Rebecca, your line is open. Please go ahead.

Thank you Lynn.

Hello, everyone.

Ali Python gratified to ask a question then presses to mute yourself.

Youre accessing their phone from that Tencent meeting meeting applications, principally <unk> Patton.

Some left for the benefit of all participants on today's call. If you wish to ask a question you mentioned that in Chinese. Please immediately repeat your question in English.

Today's first question comes from Rebecca Ashish for modest Danny I would think.

Your line is open.

Go ahead.

Rebecca Xu: 感谢管理层接受我的提问。能听到吗？

Hi.

Hi, Thank you Glenn and you can see what 19 Belmont.

Hanyu Liu: 可以的。

Raymond Peng Lei: 可以。

Great.

Rebecca Xu: 太好了，太好了，谢谢。感谢管理层接受我的提问。我的问题是关于拨备计提以及投资减值部分。看起来这也是利润端的波动的主要的原因了。是否可以请管理层分享一下这些项目的具体的构成以及背后的原因？那么也想请教，就是类似的处理是否未来还会再出现，那么会对运营利润还有净利润的影响可能会持续多久？I will translate for myself. Thanks management for taking my question. We see a profit fluctuation mainly driven by provisioning and investment impairment. Could management share the composition and underlying reasons for this item?

Got hit by some data or what they want.

Please your question.

Okay.

Congratulations you're enjoying the portal that's really out there yet.

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Yeah.

That's helpful.

I will translate myself. Thanks management for taking my question, let's see profit fluctuations, mainly driven by our provisioning and our investment impairment can management share the compensation and other lines either outcome.

Rebecca Xu: How should we think of the future trend and on operation on OP and net profit? Thank you.

How should we think of the future churn.

Operation.

Thank you.

Raymond Peng Lei: 感谢Rebecca。我解释一下，本季度利润端波动主要来自两项因素，一是因为与某主播2021年的合作安排的应收款项有关，我们在本季度计提了人民币六千六百万的一次性拨备，这也是拖累本季度经营利润的主要因素之一，造成了GAAP的运营亏损了大概三千六百万。第二项是我们确认了大概八千一百万元的投资减值，主要是与被投资企业的表现偏弱有关，这也对我们的净利润造成了影响。总体来看，这两项都属于管理层经过审慎评估的，并通盘考虑后做的非现金会计处理，不代表公司核心经营利润趋势的变化，更偏向于一次性影响。公司仍会遵照会计准则的要求，对长期投资等进行定期评估。根据管理层的判断，目前并没有其他需要进一步减值的大额资产。

Rebecca.

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Hanyu Liu: Thank you for the question. The fluctuation in our profit this quarter was mainly driven by two items. First, we recorded RMB 66 million one-off provision related to a receivable arising from 2021 arrangement with broadcaster. This was recorded in G&A and contributed materially to our non-GAAP operating loss of RMB 36 million for Q4. Secondly, we recorded impairment loss of investments of RMB 81 million related to companies that were previously invested in as underperforming. This contributed to our net loss. Overall, these two items are non-cash accounting adjustments based on management's highly prudent and critical evaluation. From our perspective, these are more like one-off impacts that do not reflect our core operating trends. Going forward, we'll continue to perform regular impairment review in accordance with accounting standard. Right as of now, based on management's current judgment, we don't see any additional impairment required at the moment. Thank you. Thank you. Our next question comes from Wei Meng from CICC. Hello, Wei Meng, please go ahead.

Margaret Shi: Thank you for the question. The fluctuation in our profit this quarter was mainly driven by two items. First, we recorded RMB 66 million one-off provision related to a receivable arising from 2021 arrangement with broadcaster. This was recorded in G&A and contributed materially to our non-GAAP operating loss of RMB 36 million for Q4. Secondly, we recorded impairment loss of investments of RMB 81 million related to companies that were previously invested in as underperforming. This contributed to our net loss.

Thank you for the question.

Fluctuating up and a profit this quarter was mainly driven by two items first we recorded a 66 million RMB one off position related to the receivable arising from 2021 arrangement with Bill Carter. This was recorded in G&A and contributed materially to our non-GAAP operating loss of.

RMB 36 million for the fourth quarter.

And secondly, we recorded impairment loss.

Investments of 81 million RMB relate to companies that were previously invested DNS as underperforming. This contributed to our net loss. The overall. These two items are noncash accounting adjustments based on managements highly prudent in a critical evaluation. So from our perspective. These are more like one off impacts and that do not reflect our copper.

Margaret Shi: Overall, these two items are non-cash accounting adjustments based on management's highly prudent and critical evaluation. From our perspective, these are more like one-off impacts that do not reflect our core operating trends. Going forward, we'll continue to perform regular impairment review in accordance with accounting standard. Right as of now, based on management's current judgment, we don't see any additional impairment required at the moment. Thank you.

In trends and so going forward, we will still continue to adhere to perform regular impact in Panama in accordance took accounting standards that right as of now and based on managements current judgment, we don't see any additional impairment required at <unk>. Thank you.

Thank you.

Operator: Thank you. Our next question comes from Wei Meng from CICC. Hello, Wei Meng, please go ahead.

Our next question comes from Helane.

The SEC Hello announced please go ahead.

Wei Meng: 感谢管理层。我有两个关于鹅鸭杀的问题。第一个的话，能否分享一下目前关于这个游戏的DAU留存、ARPU流水等等的情况，以及我们对于这个游戏今年有什么推广的KPI。另外的话，想问一下公司打算如何去延长这个游戏的生命周期。

Wei Meng: 感谢管理层。我有两个关于鹅鸭杀的问题。第一个的话，能否分享一下目前关于这个游戏的DAU留存、ARPU流水等等的情况，以及我们对于这个游戏今年有什么推广的KPI。另外的话，想问一下公司打算如何去延长这个游戏的生命周期。Let me translate myself. Thanks for taking my question. My question is about Goose Goose Duck. First of all, could you maybe share some color on the current metrics like DAU retention, ARPU, revenue, and etc. Also, what are the KPIs for 2026? Secondly, how does the management think about expanding the game life cycle from here? Great, thank you.

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Hanyu Liu: Let me translate myself. Thanks for taking my question. My question is about Goose Goose Duck. First of all, could you maybe share some color on the current metrics like DAU retention, ARPU, revenue, and etc. Also, what are the KPIs for 2026? Secondly, how does the management think about expanding the game life cycle from here? Great, thank you.

So let me translate myself. Thanks for taking my question. My question is about the stock.

First of all could you maybe share some color on the current matrix.

<unk>, you attention arent pool, and revenue et cetera, and also what's the kpis.

26.

How does the management think about a pending there.

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Raymond Peng Lei: 感谢魏萌的提问，我来简要地汇报一下鹅鸭杀的核心数据，还有我们的一些未来规划。首先我们从核心的数据表现来看，我们也可以看到现在游戏的日常的DAU都一直保持在一个比较高的水平，并且我们也看到它的表现还是非常稳健的。

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Junhong Huang: 另外我们也可以关注到，从游戏上线到现在大概两个月的时间左右，我们可以看到我们依旧在整个iOS的免费下载榜处在一个前列这样的水平，那我们整体整个的长线的留存也是超出我们的预期的。那往后面来看呢，我们随着暑期这个旺季的到来，还有我们在产品端的运营的持续的深化，我们也预计我们的DAU仍然有进一步的持续提升的空间。那另外一方面呢，在商业化方面，这个阶段呢，我们还是保持着一个相对比较克制的这样的一个策略的，就商业化的释放的内容我们目前也比较有限。那因此呢，我们可能看到日常的ARPU还是处在一个比较低的一个水平，但是在一些活动的节点，ARPU也会有一个大幅的增长。那后续随着我们整个派对的玩法，还有家园系统的陆续上线，我们也会逐步地把日常的ARPU给拉起来。那关于挖掘长期的潜力，还有延长生命周期这个，我们的主要的战略主要是围绕三个点来展开的。在第一方面呢，我们也还是前面讲到的，我们会保持一个紧凑的内容的持续的迭代。那第二方面呢，我们会多端地去寻找新的增量，那包括我们微信的小游戏的版本，预计也会在今年的年内上线，那我们也有望能够为我们整个的活跃用户的提升带来一个非常显著的增长。第三个呢，就是稳步地去构建我们整个游戏的UGC生态的系统。那目前我们也具备了UGC的编辑器的基础能力，那后续我们也持续地会去完善相关的功能，来进一步地把用户卷进来之后来丰富我们整个游戏的玩法。好，谢谢。

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Hanyu Liu: Thank you for the question. Let me briefly walk you through the current performance and our future plans for Goose Goose Duck. The game's DAU has consistently stood high and steady since its launch, with user retention also exceeding our expectations.

Margaret Shi: Thank you for the question. Let me briefly walk you through the current performance and our future plans for Goose Goose Duck. The game's DAU has consistently stood high and steady since its launch, with user retention also exceeding our expectations.

This is a question let me briefly walk you through our current performance and our future plans focus with stock against the AE has consistently stayed high and steady since its launch when do you think intention also exceeding our expectations as mentioned earlier, we are proud that two months of this launched again, you're still at the very top of the iOS free download.

Hanyu Liu: As mentioned earlier, we are very proud that two months of this launch, the game is still at the very top of the iOS free download charts. We expect to see another DAU jump in the summer as we prepare a number of game events and content updates for that season. On monetization, we have been quite conservative with only very limited monetization content introduced at this stage as we focus on growing the user base. As a result, our baseline daily ARPU is still at a relatively low level. Having said that, whenever we push out a new event or a new update, we do see significant ARPU growth. This reiterates our belief that our users respond well to these content updates, and we will roll out more party game modes and home systems later this year, which we hope will be meaningful in driving daily ARPU. In terms of longer term potential and life cycle extension, we are focused on three things. First, keeping a rapid pace of content updates. Second, gaining actual user growth across multiple platforms. We expect to launch WeChat mini game version later this year, which could further expand our overall active user base. Third, building our UGC ecosystem. We are currently working on the UGC editor and we will keep upgrading these functions, give our users an enriched UGC experience within the game. Thank you.

Margaret Shi: As mentioned earlier, we are very proud that two months of this launch, the game is still at the very top of the iOS free download charts. We expect to see another DAU jump in the summer as we prepare a number of game events and content updates for that season. On monetization, we have been quite conservative with only very limited monetization content introduced at this stage as we focus on growing the user base. As a result, our baseline daily ARPU is still at a relatively low level. Having said that, whenever we push out a new event or a new update, we do see significant ARPU growth.

We expect to see another jump in the summer I sleep number scan events and content updates for that season.

Monetization, we have been quite conservative with only very limited monetization content introduced at this stage as we focus on growing the user base.

As a result, our baseline daily output is still at relatively low level, having said that whenever we push out a new event or a new update we do see significant ARPA growth.

Margaret Shi: This reiterates our belief that our users respond well to these content updates, and we will roll out more party game modes and home systems later this year, which we hope will be meaningful in driving daily ARPU. In terms of longer term potential and life cycle extension, we are focused on three things. First, keeping a rapid pace of content updates. Second, gaining actual user growth across multiple platforms. We expect to launch WeChat mini game version later this year, which could further expand our overall active user base. Third, building our UGC ecosystem. We are currently working on the UGC editor and we will keep upgrading these functions, give our users an enriched UGC experience within the game. Thank you.

We reiterate our belief that our users respond well to these content updates and we will rollout more party game notes and home systems. Later, this year, which we hope will be meaningful in driving data out here.

In terms of longer term potential in lifecycle extension, we are focused on three things.

Keeping our rapid pace of content updates second gaining actual user growth across multiple platforms.

We expect lunch Wechat mini game version later, this year, which could further expand our overall active user base.

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Operator: Thank you. Our next question come from Ritchie Sun from HSBC. Hello, Richie, please go ahead.

Thank you Andrew.

Our next question come from Richardson from HSBC Hello, Ritchie. Please go ahead.

Sure.

Ritchie Sun: Thank you very much for taking my questions. I want to ask about AI. What has been the progress in terms of the AI, especially in AI live streaming, AI game tools, and internal organizational improvement in terms of efficiency? What are the tangible results over there?

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Organizational improvement in terms of efficiency and what are the tangible results over there. Thank you.

Ritchie Sun: Thank you.

Junhong Huang: 感谢 Ritchie 的提问，由我来回答这个问题。确实，现在整个大环境来看，AI 是每个公司都需要去思考的一个问题。我们在 AI 战略方面主要也分为赋能我们的一些现有业务，还有就是我们怎么样去探索一些新的赛道这两个方向。在赋能我们自有业务方面，我们前面也有提到 AI 直播间，包括我们 AI 工具的表现还是非常亮眼的。目前我们 AI 直播间已经贡献了我们公司整体 DAU 的 10% 左右这样的一个水平，而且头部的 AI 直播间在人均观看时长、七天留存，还有归因的 DAU 这些核心指标上面，平均都较同类品类的直播间高出了 40%。表现最突出的一些直播间，最高可以高到 80% 左右。今年，我们也将继续推出纯 AI 驱动的直播间内容能力，还有提升我们整个运营效率，来进一步提高我们在平台整体流量中的占比。另一方面，在 AI 游戏工具服务方面，我们也取得了比较积极的进展。上个季度，我们也推出了三角洲行动的地图工具，为玩家提供更加丰富的沉浸式 3D 跑图环境，来帮助他们更快地熟悉和更好地探索整个游戏。我们也把这个工具放到了海外，结果发现也大受欢迎，也被游戏官方关注到了，并且他们在官方社区也对我们整个游戏工具做了推荐。因此，对于 AI 技术的持续迭代，我们也致力于在今年三月份推出 AI 实时驱动的实时导航版本，放到整个游戏工具里面，来辅助整个用户在打游戏的过程，来进一步提高我们整个获客能力，包括我们用户的活跃度。另外在新赛道方面，我们也在布局 AI 硬件和 AI 互动产品，比如说我们结合 Goose Goose Duck 这个 IP，我们也即将推出一个 AI 智能硬件。与此同时，大家也都知道最近 Open Colony 也非常火，我们也在探索将 Open Colony，包括这种 multi-agent 的能力，和虎牙前面积累的整个数字人技术能力相结合，融入到我们整个游戏场景里面，来提升整个互动体验，并且能够支持更多定制化的玩法。展望未来，我们还将计划将这些 AI 驱动的功能和辅助工具拓展到更多的游戏里面，比如说金铲铲之战，包括前面讲到的 Goose Goose Duck 这些热门 IP 游戏里面。

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Hanyu Liu: Thank you for the question. AI is something every company should think about. For us, it is about two things. One is empowering our existing business and two exploring new opportunities. For our existing business, both AI-powered live streaming channels and AI game tools continue to deliver very strong momentum. These AI-powered channels now contribute nearly 10% of our overall DAU, and the performance continues to stand out across the platform. On average, they outperform their real-life peers by 40% across key metrics such as viewing time, retention, and attributed DAU. That number goes up to 80% for the very best AI live streaming channels. This year, we will continue to enhance content capabilities and operating efficiency of fully AI-powered live streaming channels and further increase their traffic contribution. AI game tools are also very promising.

Margaret Shi: Thank you for the question. AI is something every company should think about. For us, it is about two things. One is empowering our existing business and two exploring new opportunities. For our existing business, both AI-powered live streaming channels and AI game tools continue to deliver very strong momentum. These AI-powered channels now contribute nearly 10% of our overall DAU, and the performance continues to stand out across the platform. On average, they outperform their real-life peers by 40% across key metrics such as viewing time, retention, and attributed DAU. That number goes up to 80% for the very best AI live streaming channels. This year, we will continue to enhance content capabilities and operating efficiency of fully AI-powered live streaming channels and further increase their traffic contribution. AI game tools are also very promising.

And thank you for the question the AI something every company should think about for US is about two things one is empowering our existing business and to exploring new opportunities for our existing business. Both AI powered July streaming channels and AI tools continue to deliver very strong momentum. This AI powered chat.

Now contribute nearly 10% of our overall <unk>.

And the performance continues to stand out across the platform.

On average they outperformed their peers by 40% across key metrics, such as an easy time retention and <unk> and that number goes up to 80% for the very best AI Sydney channels. This year, we will continue to enhanced content capabilities and operating efficiency and fully AI powered launching new channels and further increased.

Traffic contribution.

Again tools also by promising last quarter, we launched <unk>, which provides a very rich immersive suite environment for players to quickly get familiar and pencil navigate the game. So we also launched.

Hanyu Liu: Last quarter, we launched Delta Force Map tool, which provided very rich, immersive 3D environment for players to quickly get familiar and better navigate the game. We also launched this tool to overseas markets, and it was very well received by international users. It drew great attention from the game's official team and was recommended on many of the official community channels. As we continue to iterate our AI capabilities, we are working on applying AI power to real-time navigation into this map tool this month to further expand user reach and engagement.

Margaret Shi: Last quarter, we launched Delta Force Map tool, which provided very rich, immersive 3D environment for players to quickly get familiar and better navigate the game. We also launched this tool to overseas markets, and it was very well received by international users. It drew great attention from the game's official team and was recommended on many of the official community channels. As we continue to iterate our AI capabilities, we are working on applying AI power to real-time navigation into this map tool this month to further expand user reach and engagement.

We also launched.

This is.

Overseas market and it was very well received by international users atrial great attention from games official team and also recommended and on many of the official community channels.

So as we continue to iterate our AI capabilities, we are working on client AI powered real time navigation into this not until this month, but expand user reach and engagement.

Hanyu Liu: Additionally, we are developing AI hardware and AI interactive products, including AI enabled smart hardware based on Goose Goose Duck IP. At the same time, we're exploring different ways to integrate new technologies such as Open Colony multi-agent systems, virtual live streamers into party game scenarios to enhance interactivity and support more customized gameplay experiences for Goose Goose Duck. Going forward, we also plan to create more AI-driven companion tools for other popular titles such as Battle of the Golden Spatula. Thank you.

Margaret Shi: Additionally, we are developing AI hardware and AI interactive products, including AI enabled smart hardware based on Goose Goose Duck IP. At the same time, we're exploring different ways to integrate new technologies such as Open Colony multi-agent systems, virtual live streamers into party game scenarios to enhance interactivity and support more customized gameplay experiences for Goose Goose Duck. Going forward, we also plan to create more AI-driven companion tools for other popular titles such as Battle of the Golden Spatula. Thank you.

Additionally, we are developing a hardware AI interactive products, including AI enabled smart hardware based on because the stock IP at the same time, we're exploring different ways to integrate new technologies, such as open call multi agent systems.

Virtual and I've seen this in Chipotle gave scenarios to enhance interactivity and support more customized gameplay experiences focus with stock.

Any forward, we also plan to create more AI and companion tools for other popular titles such as a better backdrop curtain spatula. Thank you. Thank you well take.

Operator: Thank you. We will take our next question from Nelson Cheung from Citigroup. Nelson, please go ahead.

Take our next question from Nelson Cheung from Citibank and now Sir. Please go ahead.

Nelson Cheung: Nelson、Raymond 总、Margaret、汉宇，晚上好，想感谢接受我的提问。能不能请管理层分享一下虎牙未来的游戏发行的战略，以及最新的 pipeline，以及游戏发行的上线时间表呢？然后未来游戏发行有没有一个增长预期，以及对公司整体收入的贡献规模的大概看法。So let me translate myself. Thanks management for taking my question, can management share your future strategy of your game publishing business, latest publishing pipeline and the release schedule?

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Thanks for taking my question can management share your future strategy of the gain per patient basis, Natus provisioning potline in their release schedule can management share your view on the growth expectation for the case distribution business and overall contribution to the group revenue.

Nelson Cheung: Can management share your view on the growth expectation for the game distribution business and overall contribution to the group revenue as a whole? Thank you.

Okay.

Junhong Huang: 感谢 Nelson 的提问，也由我来回答这个问题。前面也讲到说 Goose Goose Duck 已经在游戏发行上面给了我们一次更有力的信心，还有一个证明。那关于游戏的发行业务方面呢，我们也将坚定地推进以内容营销为驱动的整个的战略。当前呢，我们行业呢，也正在快速地向内容营销这个方向来转变，这也是完美地契合了我们整个生态的优势，是我们入局的一个最佳的窗口。我们不单纯地去依靠买量，而是依托我们在短视频、直播，还有社区构建一个完整的宣发网络。那合作上呢，我们坚持以独代为核心，这也能精准地验证我们整个的转化的效率，并且沉淀出可以复制的长线发行方法论。那在产品的储备和运营上面呢，我们后续为多个产品的推进，也提供了有力的支撑。基于这些情况呢，我们预计今年会有多款小游戏，还有手游的陆续上线。那选品上呢，我们也会高度聚焦内容属性强、具备电竞还有综艺潜力的这些游戏，借此呢来最大化地去发挥我们整个平台的优势，来实现长线的运营。那从战略看呢，随着我们公司持续地去推动业务多元化，突破传统直播业务的边界，游戏发行也会成为驱动我们增长的整个的关键引擎。那尽管具体的收入贡献还需要等待产品上线后，我们才能够有一个更加清晰的预判。但是我们也相信，从长远的角度来看呢，发行业务必然成为虎牙公司未来营收的一个重要组成部分。

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Hanyu Liu: On game publishing, we remain firmly committed to a content-driven strategy. The industry is rapidly shifting towards content-driven publishing, which fits very well with HUYA's strength in live streaming, short-form video content, and community engagement. Rather than relying mainly on traditional user acquisition, we're building a more integrated publishing model driven by content. Having publishing rights helps us to better measure user conversion efficiency and build a scalable publishing capability. From a pipeline perspective, we have a number of mini-games and mobile games in the pipeline for the year. Most of them either have very strong content appeal or clear esports and entertainment potential. This is where HUYA's strength in live streaming and esports content can be fully leveraged. We see game publishing as the most important driver of our growth as we continue to diversify beyond our traditional live streaming business.

Margaret Shi: On game publishing, we remain firmly committed to a content-driven strategy. The industry is rapidly shifting towards content-driven publishing, which fits very well with HUYA's strength in live streaming, short-form video content, and community engagement. Rather than relying mainly on traditional user acquisition, we're building a more integrated publishing model driven by content. Having publishing rights helps us to better measure user conversion efficiency and build a scalable publishing capability.

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<unk> is rapidly shifting towards content journal publishing, which fits very well with strength in lysine in short form media content and community engagement, rather than relying mainly on occasional user acquisition. We're building a more integrated publishing model driven by content, having publishing rights help us substantially.

I used the conversion efficiency and build a scalable publishing capability.

Margaret Shi: From a pipeline perspective, we have a number of mini-games and mobile games in the pipeline for the year. Most of them either have very strong content appeal or clear esports and entertainment potential. This is where HUYA's strength in live streaming and esports content can be fully leveraged. We see game publishing as the most important driver of our growth as we continue to diversify beyond our traditional live streaming business. While we might have better visibility into revenue contribution after the games are launched, we do have a very strong conviction that our publishing business will be an important part of our revenue mix over time.

From a pipeline perspective, we have a number of mini games and mobile games in the pipeline for the year most of them either have very strong content appeal.

E Sports and entertainment potential places, where we have strength in lysine esport content can be fully leveraged.

C game publishing as the most important driver of our growth as we continue to diversify beyond our traditional <unk> business, while we might have better visibility into revenue contribution. After the games are launched we do have a very strong conviction at approximate business will be an important part of our revenue mix.

Hanyu Liu: While we might have better visibility into revenue contribution after the games are launched, we do have a very strong conviction that our publishing business will be an important part of our revenue mix over time.

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Operator: Thank you. Our next question comes from Yiwen Zhang from China Renaissance. Hi, Yiwen, please go ahead.

Thank you.

Our next question comes from <unk>, Zhang from China Renaissance.

Please go ahead.

Yiwen Zhang: 哎，谢谢管理层接受我的提问。我的问题是关于咱们利润率的。看到虽然 Q4 咱们的一个净利润率受到一些减值跟拨备的影响，但本季度的毛利还是有不错的增长。想问一下管理层如何看待公司未来毛利率的一个趋势，还有改善的空间？谢谢。Thanks for taking my question. The question is on margin. We know despite some net impact from provision impairment in Q4, there was notable improvement on our gross profit margin during the quarter.

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Sure. So thanks for taking my questions. My question is on monitoring with note. Despite some net impact from provision are determined in Q4.

There was none appointed improvement on our gross profit margin during the quarter. So what does the management view on future gross profit hopefully monitoring trend and a room for improvement. Thank you.

Yiwen Zhang: What is the management view on future gross profit margin trend, and room for improvement? Thank you.

Junhong Huang: 谢谢Yiwen。2025年，公司的全年毛利率为13.4%，同比小幅提升0.1个百分点。从季度表现来看，2025年第四季度毛利率同比提升了2.7个百分点，主要受两方面带动。第一，四季度的广告收入占比有所提升，而广告业务毛利率相对较高。第二，道具业务延续较快增长，也对整体毛利率形成了积极的贡献。往前看，尽管我们的直播业务的毛利率面临一定的压力，但高毛利业务占比提升带来的正面影响正日益显现，这在我们第四季度的业绩中已经得到了体现。随着游戏发行、游戏道具等高毛利业务规模的持续扩大，以及经营杠杆的逐步改善，我们预计毛利率将呈现温和改善的趋势。

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Hanyu Liu: For the full year 2025, our gross margin was 13.4%, up 0.1 percentage points year-over-year. In Q4 2025, gross margin however improved by 2.7 percentage points year-over-year, mainly driven by two factors. First, advertising accounted for a high percentage of total revenue and carries a relatively high gross margin. Second, our in-game item business maintained very strong growth and also contributed positively to the margin improvement. Looking ahead, while gross margin of our live streaming business might be facing a bit of pressure, the benefits from our higher margin businesses are becoming much more visible, as reflected in our Q4 performance. Game publishing and in-game item sales business continue to grow, and as operating leverage gradually improve, we do expect to see continued gross margin improvement.

And for the full year 2025, our gross margin was 34% up one percentage point year over year in <unk>.

Margaret Shi: For the full year 2025, our gross margin was 13.4%, up 0.1 percentage points year-over-year. In Q4 2025, gross margin however improved by 2.7 percentage points year-over-year, mainly driven by two factors. First, advertising accounted for a high percentage of total revenue and carries a relatively high gross margin. Second, our in-game item business maintained very strong growth and also contributed positively to the margin improvement. Looking ahead, while gross margin of our live streaming business might be facing a bit of pressure, the benefits from our higher margin businesses are becoming much more visible, as reflected in our Q4 performance. Game publishing and in-game item sales business continue to grow, and as operating leverage gradually improve, we do expect to see continued gross margin improvement.

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Looking ahead, while gross margin of our lysine business might be might be facing that pressure the benefits from our highest margin businesses are becoming much more visible as reflected in our fourth quarter performance.

As game publishing and in game item sales business continue to grow and is operating language gradually improve we do we expect to see continued gross margin improvement.

Operator: Thank you. We will take our last question today from Maggie Ye from CLSA. Maggie, please go ahead.

Thank you.

Take our last question today from Mickey <unk> from CLSA.

Please go ahead.

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Maggie Ye: 晚上好，感谢管理层接受我的提问。我的问题是关于游戏道具业务的。本季度咱们在看到收入增长之外，想请教一下在利润率、渠道结构和独家权益这几个方面是否有哪些实质性的进展？管理层如何看待这些业务未来几个季度的增长的可持续性，以及它们的盈利提升的空间？Thanks for taking my question. My question is related to game virtual item sales.

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Thanks for taking my question and my question is related to gang virtual item sales. So beyond the top line growth. This quarter can management share any material progress regarding this segment's margin profile channel mix and any exclusive partnership initiatives and Furthermore, how should we think about the sustainability.

Maggie Ye: Beyond the top line growth this quarter, could management share any material progress regarding this segment's margin profile, channel mix, and any exclusive partnership initiatives? Furthermore, how should we think about the sustainability of this growth and the potential for future margin expansion over the coming quarters? Thank you.

Of this growth and the potential for future margin expansion over the coming quarters. Thank you.

Junhong Huang: 感谢 Maggie 的提问。最后一道题我来回答这个问题。这个季度，我们可以看到整个道具的业务表现还是非常健康的，总体实现了规模还有利润质量的双重提升。从数据来看，2025 年第四个季度，我们道具销售的收入继续保持同比 200% 以上的高速增长。同时，随着我们道具业务规模化效应的释放，我们也进一步优化了整个成本结构，带来了整个盈利质量的显著改善。业务的亮点方面主要体现在三个方面。第一个，是我们独家权益的突破，我们首次拿下了王者荣耀的王昭君 FMVP 皮肤，并且能够享受这种独家超前预售的权益。上线首个小时，我们也得到了近千万的流水，并且能显著带动新增道具付费用户的增长，也充分验证了我们整个商业化的转化能力。其次，我们在整个渠道结构的优化方面，预计未来虎牙站内的商城交易占比也将进一步提升，我们也会将更多的交易沉淀到我们自有的场景中来。第三个，是我们重点品类的合作拓展，目前我们也在逐步覆盖腾讯、网易这些头部厂商的重点项目，我们整个的产品矩阵也在持续丰富。谢谢。

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Hanyu Liu: Thank you for the question. Overall our in-game item business delivered a very solid quarter with very strong growth, and improved profitability. In Q4 2025, revenue from in-game item sales continued to grow by over 200% year-over-year. As the business scales, we also further optimized our cost structure, which then translated into meaningful improvement in earnings quality. There were three key highlights during the quarter. First, we achieved a meaningful milestone in exclusive rights partnership. For the first time, we secured exclusive pre-sale rights for Wang Zhaojun's FMVP skin in Honor of Kings. The launch generated close to RMB 10 million in gross billings within the first hour, and it drove very strong growth in new paying users, demonstrating our monetization capability. Second, we continue to improve our channel mix.

Margaret Shi: Thank you for the question. Overall our in-game item business delivered a very solid quarter with very strong growth, and improved profitability. In Q4 2025, revenue from in-game item sales continued to grow by over 200% year-over-year. As the business scales, we also further optimized our cost structure, which then translated into meaningful improvement in earnings quality. There were three key highlights during the quarter. First, we achieved a meaningful milestone in exclusive rights partnership. For the first time, we secured exclusive pre-sale rights for Wang Zhaojun's FMVP skin in Honor of Kings. The launch generated close to RMB 10 million in gross billings within the first hour, and it drove very strong growth in new paying users, demonstrating our monetization capability. Second, we continue to improve our channel mix.

Thank you for the question. So overall, our in game items business and then the very solid quarter with very strong growth and improved profitability in the fourth quarter of 2025 revenues from in game item sales continue to grow by over 200% year over year as the business scales, we old Sanford.

The optimized our cost structure with central insulated into meaningful improvement in earnings quantity.

So there were two there were three.

Three key highlights during the during the quarter first we achieved a meaningful milestone in exclusive rights partnership.

First time, we secured a presale rights for one gouging SMTP skin honour of Kings. The launch generated close to 10 million RMB in cost savings within the first hour and enjoyed very strong growth and new paying users demonstrated our monetization capability.

We continue to improve our channel mix, we expect more transactions to be completed in our proprietary in game item over time, which will further improve monetization efficiency.

Hanyu Liu: We expect more transactions to be completed in our proprietary in-game item mall over time, which will further improve monetization efficiency. Third, we continue to work with some of the largest game companies in China, working on their key titles, including those from Tencent and NetEase. We hope to further expand our portfolio of games, and continue to grow our presence in industry. Thank you.

Margaret Shi: We expect more transactions to be completed in our proprietary in-game item mall over time, which will further improve monetization efficiency. Third, we continue to work with some of the largest game companies in China, working on their key titles, including those from Tencent and NetEase. We hope to further expand our portfolio of games, and continue to grow our presence in industry. Thank you.

We continue to work with some of the largest game companies in China and with less working on their key titles, including those from Tencent that east I will help to further expand our portfolio of games and the maker.

To grow our presence in industry. Thank you.

Operator: 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 Piacente Financial Communications. This concludes today's call and we're looking forward to speaking to you again next quarter. Thank you.

Thank you once again for joining US today. If you have further questions. Please feel free to contact <unk> Investor relations to the contact information provided on our website or you can say financial communications. This concludes today's call and looking forward to speaking to you again next quarter. Thank you.

Q4 2025 HUYA Inc Earnings Call

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