2026 earnings webinar. I'm Zicheng Liu from the Huya Investor Relations.

At this time, all participants are in listen-only mode. Please be advised that today's webinar is being recorded.

The company's financial and operational results were issued earlier today and are posted online. You can also view the earnings press release by visiting the IR website at ir.huya.com.

A replay of the call will be available on the IR website soon. Participants of management on today's call will be Mr.

Vincent Junhong Huang, our Acting CEO; Mr. Raymond Peng Lei, our CFO; and Ms.

Margaret Shi, Head of Capital Markets. Management will begin with prepared remarks, and the call will conclude with a Q&A session.

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today.

Further information regarding these and other risks and uncertainties is included in the company's latest annual report on Form 20-F and other public filings as filed with the U.S. Securities and Exchange Commission.

The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that Huya's earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures.

Huya's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. With that, I'm pleased to turn the call over to Mr.

Huang. Please go ahead.

Okay. Hello, everyone.

I'm Vincent, and thank you for joining our earnings call today. Let me begin with a brief overview of our second-quarter performance.

We delivered another quarter of sustainable growth, with total net revenues increasing by 11% year over year to RMB 1.74 billion. Game-related services, advertising, and other revenues maintained strong momentum, growing by 54% year over year to RMB 638 million and contributing approximately 37% of total net revenues.

Behind this growth is our long-term positioning along the game industry value chain, which is steadily translating into sustainable growth momentum. Over the past three years, we have steadily expanded our presence across the game industry value chain, evolving from game distribution to in-game item sales, advertising and marketing, and now game publishing.

Throughout this journey, we have built differentiated user acquisition capabilities that have been increasingly recognized and validated by both our partners and the market. This gives us the confidence to extend beyond our capacity as a publishing partner and take on the full game publisher role, which allows us to participate more deeply across the entire game lifecycle.

Our publishing model is built around content rather than paid traffic acquisition. Leveraging our strengths in content creation, streamer network, and user communities, we foster high-quality UGC, expand our reach, and generate social buzz across platforms such as Douyin, REDnote, and WeChat channels.

This differentiated approach to publishing lets us acquire users more efficiently while reducing our reliance on traditional paid traffic channels. Goose Goose Duck Mobile is our first success story published under this framework, maintaining an active user base and a vibrant content ecosystem.

Since July, we have stepped up our efforts to improve the in-game voice environment, launching an AI-powered voice moderation system and a tiered matchmaking system under the Good Goose Alliance program. These measures have laid a solid foundation for a healthy in-game environment and sustained user engagement.

On July 20, we launched a collaboration with the classic IP Journey to the West, together with a new party gameplay mode that expands player interaction across multiple theme spaces. The update expanded the experience beyond the game's core social deduction gameplay into a broader range of immersive social experiences, resulting in an enthusiastic reception by players.

Supported by our ongoing efforts to improve the in-game environment and introduce compelling content updates, Goose Goose Duck Mobile returned to the number-one position on the iOS free game chart in the Chinese mainland at the end of July. The performance of Goose Goose Duck Mobile has demonstrated the effectiveness of Huya's content-driven marketing approach while also helping us develop a repeatable publishing playbook and build valuable operational expertise for future titles.

Next up in our pipeline are two titles we are publishing exclusively: The Legend of Swordman: Reunion, the classic martial arts MMORPG, and Xiao Xiao Qi Yu, a 3D match-based casual mobile game. Our transition from co-publishing to exclusive publishing marks another step forward in the evolution of our publishing strategy.

Officially licensed from Seasun Games, The Legend of Swordman: Reunion is the latest entry in the renowned Legend of Swordman franchise, building on more than two decades of rich heritage. It was developed by the original core team behind the PC game, JX Online, and offers a seamless cross-platform experience featuring synchronized account data and gameplay across mobile app, PC, and mini program platforms.

The game has completed its first round of testing and received encouraging user feedback. By combining our content marketing capabilities with the reach of our streamer network, we aim to bring this classic franchise to a broader audience while preserving the authentic gameplay that has made it a fan favorite for generations.

Xiao Xiao Qi Yu is a 3D match-based casual mobile game featuring the officially licensed Zanmang Loopy IP and represents an expansion into the match category for Huya. The title is well aligned with our content-driven publishing model, with strong potential to generate user-created content, social engagement, and organic traffic across livestreaming and short-form video platforms.

On the self-developed game front, we were pleased to see our first self-developed title, Zhe Dao You Huan Shou, receive regulatory approval for publication in July. As a casual SLG centered on islands and pet collection, the game represents another important step in building an in-house game development capabilities.

We are now actively preparing for its upcoming testing and look forward to sharing more updates as development progresses. On the advertising side, we continue to strengthen our content-driven integrated marketing solutions for game developers during the quarter while broadening our advertiser base.

Hearthstone has emerged as an important new customer this quarter. We partnered with leading streamers to deliver a series of tournament and content collaborations for Hearthstone, highlighted by Da'an Manor Global Invitational, the first global third-party platform tournament for Hearthstone Battlegrounds.

It debuted in China and generated more than 200 million impressions across online platforms during tournament play, earning strong recognition from the client. On the in-game item sales front, revenues maintained triple-digit year-over-year growth, with Peacekeeper Elite, PUBG Mobile, Genshin Impact, and Arena Breakout as key contributors.

For Peacekeeper Elite, we continue to invest in the broader game ecosystem. In particular, our coverage and commentary around PEL tournaments generated strong audience interest and engagement, enhanced the appeal of our in-game item offerings, and contributed to continued growth in related sales.

In our livestreaming business, the outdoor entertainment content category continued to perform well during the quarter, while our overall streamer ecosystem remained stable. We are also exploring ways to drive greater synergies between game streamers and our entertainment verticals to boost the revenue contribution from top streamers.

Since the beginning of the second half of the year, we have also been proactively reviewing the economics of our livestreamer partnership, aiming to improve the efficiency of our content investment and support a healthier, more sustainable livestreaming ecosystem. In terms of tournament content, we offered more than 100 licensed tournaments and approximately 20 self-produced tournaments on the Huya platform during the quarter.

Our self-produced events continue to grow in scale and build stronger proprietary event brands. For the CF Grandmaster Cup, we officially partnered with CrossFire to stage an international invitational featuring eight professional teams and four leading overseas teams.

The tournament also featured a crossover with the film Kung Fu Hustle, further integrating esports and broader entertainment content. The Dota 2 Immortal Cup Season 2 generated widespread online buzz and more than 2.5 billion impressions across online platforms.

In July, we launched both the Delta Force Streamer Championship and the Peacekeeper Elite Mengnan Superstar Cup. Together, these events expanded our presence across leading shooter titles, strengthened our portfolio of self-produced tournaments, and enhanced Huya's appeal among core gamers.

We also helped host the VALORANT National Tournament, earning further recognition from game developers for our tournament hosting and production capabilities. On product and AI, we continue to apply AI technologies across our game content ecosystem to improve both our products and overall platform experience.

For popular titles such as Delta Force, League of Legends, and Teamfight Tactics, we have launched a range of AI-powered game tools, including map navigation and combat assistance features. These tools have driven solid user engagement and retention.

Users of these tools have also shown higher activity levels, longer viewing time, and greater monetization potential on the Huya platform, reinforcing our view that AI-powered game tools will play an increasingly important role in enriching our livestreaming ecosystem and creating long-term value. In July, we released VAM Version 1.0, our self-developed real-time multimodal digital human model.

VAM can rapidly generate AI-powered virtual hosts with natural speech, singing capabilities, and expressive body movements, enabling highly realistic real-time interaction. We believe VAM has the potential to meaningfully improve the economics of livestreaming content.

Unlike traditional livestreaming where content supply is inherently constrained by the number and availability of human streamers, VAM enables us to scale content production more efficiently. As deployment expands, we expect operating leverage to increase, with our marginal content creation costs declining while content supply becomes more scalable.

Looking back at the quarter, we continued to make steady progress in executing our long-term strategy across publishing, self-development, AI innovation, and game-related services. We have further strengthened our capabilities and expanded our role across the game industry value chain.

Looking ahead, we remain focused on executing our content-driven strategy, deepening our partnerships across the gaming ecosystem, and investing in the capabilities that will support our next phase of growth. We believe these efforts will further strengthen Huya's competitive position and create sustainable long-term value for our shareholders.

Thank you. With that, I will now turn the call over to our CFO Raymond Lei.

He will share more details on our results. Raymond, please go ahead.

Thank you, Vincent, and hello, everyone. I'll start with an overview of our financial performance.

In the second quarter, we delivered steady top-line growth while continuing to improve our revenue mix and operating performance. With a larger revenue contribution from our higher-margin game-related services, advertising, and other businesses, our gross margin expanded to 14.7%, operating loss narrowed to RMB 7 million, and non-GAAP operating income improved both year over year and sequentially to RMB 16 million.

Let's move on to more details of our Q2 financial results. Total net revenues were RMB 1.74 billion for Q2, up 11% from the same period last year.

Livestreaming revenues were RMB 1.1 billion for Q2, compared with RMB 1.15 billion for the same period last year, primarily reflecting the livestreaming industry's current environment. Game-related services, advertising, and other revenues were RMB 638 million for Q2, up 54% from the same period last year.

The increase was primarily driven by higher revenues from in-game item sales and advertising, as well as the contribution from the commercialization of Goose Goose Duck Mobile. Cost of revenues increased by 10% year over year to RMB 1.48 billion for Q2, generally in line with the increase in revenues, primarily due to increased revenue-sharing fees and the cost of in-game virtual items.

Within this, revenue-sharing fees and the content costs rose by 3% year over year to RMB 1.21 billion. Gross profit was RMB 255 million for Q2, up 20% from the same period last year.

Gross margin was 14.7% for Q2, improving from 13.5% for the same period last year. Excluding share-based compensation expenses, non-GAAP gross profit was RMB 257 million, and the non-GAAP gross margin was 14.8% for Q2.

Research and development expenses decreased by 1% year over year to RMB 120 million for Q2. Sales and marketing expenses increased by 58% year over year to RMB 91 million for Q2, primarily due to continued marketing and promotional efforts related to Goose Goose Duck Mobile.

General and administrative expenses decreased by 8% year over year to RMB 58 million for Q2, primarily due to decreased professional service fees. Other income was RMB 7.8 million for Q2, compared with RMB 7.6 million for the same period last year.

Operating loss narrowed to RMB 7 million for Q2, compared with a loss of RMB 24 million for the same period last year. Excluding share-based compensation expenses and the amortization of intangible assets from business acquisitions, non-GAAP operating income increased to RMB 16 million from RMB 0.4 million in the same period last year.

Interest income was RMB 26 million for Q2, down from RMB 59 million for the same period last year, primarily due to a decrease in the average deposit balances as a result of special cash dividends and the lower interest rates. Net income attributable to Huya Inc.

was RMB 1.6 million for Q2, compared with a net loss attributable to Huya Inc. of RMB 5.5 million for the same period last year.

Excluding share-based compensation expenses and the amortization of intangible assets from business acquisitions, net of income taxes, non-GAAP net income attributable to Huya Inc. was RMB 36 million for Q2, compared with RMB 48 million for the same period last year.

Basic and diluted net income per ADS were each RMB 0.01 for Q2. Non-GAAP basic and diluted net income per ADS were each RMB 0.16 for Q2.

As of June 30, 2026, the company had cash and cash equivalents, short-term deposits, and long-term deposits of RMB 3.21 billion, compared with RMB 3.46 billion as of March 31, 2026. With that, I'd like to open the call to your questions.

Thanks, Raymond. Hello, everyone.

If you are dialing in by phone, please press 5 to ask a question, then press 6 to unmute yourself. If you are accessing the call from the Tencent Meeting or VooV Meeting applications, please click the Raise Hand button at the bottom left.

For the 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 Ritchie Sun from HSBC.

Your line is open. Please go ahead.

Vincent, Raymond, Margaret, 晚上好啊，感谢你们给我提问的机会啊。我想问一下关于《鹅鸭杀》的一个进展，能否请你们分享一下《鹅鸭杀》手游在二季度的运行情况、商业化的表现，还有在暑期档方面的进展？Good evening, management. Thank you for taking my question.

My question is about Goose Goose Duck. Can you please share the operation update, monetization performance, and summer promotion progress for Goose Goose Duck?

Thank you.

OK，那这个问题由我来回答，感谢 Ritchie 的提问。那第二季度呢，《鹅鸭杀》我们整个用户的这个基本盘仍然是保持一个韧性，那主要是以18岁到25岁的这个年轻用户为主。那从长线的这个留存来看呢，我们也看到说这个衰减其实是很低的，核心的这个用户黏性仍然很强。那同时呢，我们也在整个游戏的生态治理上面，我们保持一个持续的投入。AI 自动语音严审的系统也于上个月的这个中旬正式上线，那重点主要在于说我们去优化语音和社区的这个环境，不断地去改善玩家的这个游戏和社交体验。

In the second quarter, Goose Goose Duck Mobile continued to maintain a healthy and engaged player base, with users aged between 18 to 25 remaining our core demographic. Long-term retention remained stable, with limited user churn, reflecting continued engagement among our core users.

We also continued to invest in building a healthy and a positive gaming environment. Last month, we launched an AI-powered voice moderation system to improve the quality of in-game voice chat and foster a more positive community environment.

This has helped enhance both the gameplay and social experience for our players and further supports the long-term health of the game.

那从商业化方面呢，《鹅鸭杀》的变现能力也得到了进一步的验证。那从4月份的这个《甄嬛传》联动以来呢，游戏的這個整个商业的价值也得到了一个持续的释放。那6月初的《狐妖小红娘》的这个联动，包括7月份我们和《西游记》还有小黄鸭的这个联动，也进一步提升了我们产品的热度，助力游戏我们在7月底呢重返到了整个 App Store 的游戏免费榜的这个榜首。那往后看呢，我们联动的这个内容储备还是十分丰富的。基本上每个月我们都会规划新的这个主题的这个运营活动，比如在这个月也就是8月，我们还即将上线这个《剑网3》的这个联动，来进一步丰富我们整个内容的這個供给。

On monetization, the game continues to demonstrate its strong commercial potential. Since our very first IP collaboration with Empresses in the Palace in April, we have continued to unlock new monetization opportunities.

Subsequently, we had collaborations with Fox Spirit Matchmaker in June, Journey to the West and B.Duck in July, further boosted player engagement and helped the game return to the number-one spot on iOS free game charts at the end of July. We aim to have a robust pipeline of collaborations, with new themed events planned on almost monthly basis.

In August, for example, we plan to launch additional collaborations, including JX3, further expanding our content offerings and creating new opportunities to drive player engagement and monetization. 那在内容生态方面呢，像猎鹅模式模式，还有这个台球啊、麻将这些

UGC 的这个玩法，那目前占用户整个的这个时长、总的时长的比例也在持续的这个提升。那暑期档的内容储备我们也比较丰富，比如说7月份我们上线了个人岛家装的这个个人岛的这种家装系统，包括来让玩家能够打造属于自己的这个私人的定制的这个海岛。那8月到9月呢，我们还将陆续地推出多个版本的这个更新，来涵盖比较核心的这个玩法迭代、游戏内的这个社交的互动玩法、AI 对局，还有赛事功能等多各方向。我们也希望能够持续地去丰富玩家的整个游戏体验。

On the content front, it's encouraging to see UGC modes such as Goose Hunt, Pool, and Mahjong continue to account for an increasing share of total player time. We also have a robust summer content lineup.

In July, we launched a personal island home decorating system, giving players greater freedom to design, customize their own live islands. From August through September, we plan to roll out a series of updates spanning core gameplay, social features, AI-powered matches, and tournament features, further enhancing the overall player experience.

那同时我们研、发团队呢目前我们也正在重点地推进微信小游戏的這個版本。那前期我们将以产品的这个稳定性还有核心的这个数据作为以验这个数据的这个验证为主。并且呢我们也希望能够充分地去利用微信的整个生态的这个分享，还有社交的这个传播能力，来降低用户邀请好友还有组织这种对局的这些门槛。那也基于我们上半年积、累的这种用户基础呢，微信小游戏的這個版本我们也有希望能进一步去扩展到新的这个用户的触达场景，来为后续的这个用户增长来打开更大的这个空间。那总体来看呢，我们对于《鹅鸭杀》的整个长期的这个生态的健康发展、用户的这个活跃度、商业化的这个潜力，仍然保有保持一个充分的这个信心。 We're also working closely with R&D team to develop the WeChat mini game version.

At this stage, we are focused on ensuring product stability and testing key operational metrics while taking advantage of WeChat's built-in social and sharing features to make it easier for players to invite friends and organize game sessions. With a solid user base established in the first half of the year, the WeChat mini game version gives us an opportunity to reach new audience across the WeChat ecosystem and drive the next phase of our user growth.

Overall, we remain fully confident in the long-term health and stability of Goose Goose Duck Mobile ecosystem, as well as its user engagement and monetization potential.

Our next question comes from Maggie from CLSA. Please go ahead.

Maggie, please unmute your

line. 喂？哎，能听到吗？

可以。 哎，谢谢管理层接受我的提问。想请管理层是否能够更详细地跟我们介绍一下虎牙目前在 AI

方面的一些实质性的进展，比如说在这个内容推荐啊、主播工具以及互动功能等方面的一个落地情况。那么展望未来呢，这些功能将如何帮助虎牙的这个用户增长以及商业化？I'll translate

the question. Could management elaborate a bit more on Huya's overall AI initiatives?

For example, the creator tools, content recommendation, as well as any interactive features, and how are these capabilities expected to drive user growth as well as monetization over the next few months and then over the mid-term as well? Thank you.

感谢

Maggie 的这个提问，那这个问题也由我来回答。正如我们在上个季度我们也有提到说，我们整个 AI 的这个布局是围绕着四个方向我们来进行推进的。首先第一个是 AI 加直播、AI 加游戏工具，还有 AI 加 IP 陪伴，以及 AI 加游戏制作。那在 AI 直播方面呢，我们这个季度我们也推出了我们自研的这个实时的这个多模态数字人模型 VAM 1.0。在实时的这个全双工数字人赛道上面，我们目前应该是处在一个行业的第一梯队。那对整个行业而言呢，我们认为 VAM 正在推动数字人从展示型的这种产品走向实时交互型的这个应用。那直播内容呢的供给呢，我们也有望在接下来的话能够突破真人主播在时间还有成本上面的这个约束，那推动整个行业向真人加 AI 这样混合内容的这个生态来进行演进。那对于我们公司而言呢，那 VAM 也是我们虎牙在 AI 战略的这个内容侧的这个核心的载体。那依托我们整个自研模型的这个能力，我们能够以更低的这个边际成本还有更高效率来扩大我们多个场景的这个 AI 内容供给，并且让它能够逐步成为用户增长还有平台长期价值的这个重要增量的这个来源。

As mentioned last quarter, our AI initiatives remain focused on four areas: livestreaming, game tools, IP-based companionship, and AI-assisted game development. In AI-powered livestreaming, we launched VAM 1.0, our proprietary real-time multimodal digital human model, during this quarter.

VAM is among the leading solutions in the real-time full-duplex digital human space, and we believe it is helping digital humans to move beyond visual and display purposes towards more practical and real-time interactions. By reducing the time and cost constraints associated with human livestreamers, VAM could help accelerate the industry's shift towards a hybrid content ecosystem powered by both humans and AI.

Our proprietary model enables us to scale AI-powered content across a broader range of use cases with great efficiency and lower marginal cost, creating new opportunity to expand our content supply on our platform. 那后续我们也将会围绕着用户体验、模型的這個能力还有我们成本效益三个主线来进行的持续的迭代。那重点来提升整个形象的一致性，还有包括表情还有动作的这个表现，实时对话和语音的这个自然度，并且来进一步地降低延迟还有算力的这个成本。

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

AI 游戏的这个工具方面呢，《三角洲行动》地图工具，还有海克斯大乱斗的这个助手自上线以来呢，表现也是持续的稳健。那半年之内呢，我们也已经累计的这个用户已经突破了百万，用户的这个留存也保持一个健康的一个趋势。那第二季度呢，我们也上线了《云顶之弈》的这个工具。那第一次我们将 AI 辅助能力扩展到像自走棋这样的一个品类。那《云顶之弈》呢也具有策略的这个复杂度高、实时决策的这种需求比较强的这些特点。那跟 AI 局内的实时辅助具有一个较高的一个匹配度。那这也进一步验证了 AI 实时辅助技术在跨品类的这个复用的这个可行性。那后续我们也将会结合用户的需求来逐步探索更多的这种策略类的这个游戏工具。 For

AI game tools, the Delta Force Map tool and Hextech ARAM assistant have delivered steady performance since their launches. Within six months, they have attracted more than 1 million users and maintained healthy retention.

In the second quarter, we launched a Teamfight Tactics assistant, marking our first expansion of AI assistant into auto chess genre. Given its strategic complexity and strong need for real-time decision-making, Teamfight Tactics is a natural fit for real-time in-game AI assistants.

This further demonstrate that our AI assistant capabilities can be applied across game genres. Based on user demand, we will gradually explore tools for additional strategy games.

那

AI 游戏工具呢对我们主站的这个协同的价值也在持续的得到一个验证。那以海克斯大乱斗的这个助手为例呢，用户使用这个工具之后，我们可以看到在虎牙的这个月活跃的这个天数提升超过了一倍，观看的这个频次还有观看的时长，还有整体的这个用户价值都有一个明显的提升。这也说明了 AI 工具呢不仅能够满足玩家的这个实际的需求，那也能够有效地增强用户活跃度还有平台的这个黏性。

The value of our AI-powered game tools to the Huya platform is becoming increasingly more evident. Take our Hextech ARAM assistant as an example.

After adopting the tool, users more than doubled their monthly active days on Huya platform, while also watching more frequently and for longer periods, resulting in higher overall user engagement and value. 那此外我们也在持续的探索

AI 加 IP 陪伴，还有基于多

agent 的协同的这个 AI 辅助的这个游戏的制作。那其中的多模态的 AI 实体陪伴产品设计呢，也计划在今年内我们会启动一个预热。AI 辅助游戏的这个制作呢，目前我们也处在一个早期的这个验证阶段。那重点应用于像休闲还有轻量的这个互动内容的这个生成还有测试。 We're also continuing to explore AI-enabled IP companionship and AI-assisted game development through multi-agent workflows.

Later this year, we plan to begin pre-launch promotion for a physical multimodal AI companion product. Our AI-assisted game development efforts is also at a quite early testing stage, with current applications focused on generating and testing casual and lightweight interactive content.

Our next questions comes from Nelson from Citi. Please go ahead.

喂，管理层，你们好，感谢接受我的提问。我想请教一下我们在《鹅鸭杀》之后呢，公司会如何定位我们未来的这个游戏发行的这个业务？我们能否请管理层展开一下目前的产品储备和推进的一个节奏？谢谢。So let me translate into English. Thanks management for taking my question.

Following the success of Goose Goose Duck, how would Huya position its game publishing business in future? Can management share the latest updates on your pipeline and publishing schedule going forward?

Thank you. 谢谢

Nelson 的提问，那这个问题也由我来回答吧。那游戏发行呢是我们从整个的游戏直播平台向整个综合游戏生态提供商转型的一个重要组成部分。那目前虎牙我们的整个的核心优势并不是只是说在流量的这个导入，而是能够去整合我们整个直播内容、主播的这个矩阵、玩家的这个社区，还有赛事资源和商业化的这个能力。那也以此来形成整个内容营销带动用户触达还有产品运营的整个的发行模式。那《鹅鸭杀》的整个的成功上线呢，也验证了我们在内容驱动发行、社交赋能游戏的这个路径，也帮助我们能够初步建立了从产品的这个上线还有用户获取到长期运营的一体化的能力。 Okay.

Game publishing is a key part of our transformation from a livestreaming platform into a more integrated game service provider. Our core strength goes beyond traffic acquisition.

What sets us apart is strength of our content ecosystem, which enables us to build awareness, engage users, and support games throughout their lifecycle. The successful launch of Goose Goose Duck Mobile validated our content-driven publishing approach and the role of social engagement in enhancing the game experience.

It also helped us to begin building integrated end-to-end capabilities spanning product launch, user acquisition, and long-term operations. 在产品的选择上面，我们也会继续围绕像精品游戏还有优质的

IP 来进行布局，重点关注呢具有较强的这种内容传播、社交互动和长期的这个运营潜力的这个产品。那同时呢，我们也在逐步拓宽品类和用户这个覆盖。正如我们在前面的这个陈述当中也提到说，目前我们已经有三款的这个重点产品我们正在积极地推进，包括像虎牙独家发行的《剑侠情缘·重逢》、《消消奇遇》，还有我们自研的这个《这岛有幻兽》。那此外呢，我们还有多款的产品正处在一个筹备的阶段。

In selecting products, we'll continue to focus on high-quality games and premium IP, prioritizing titles with strong content appeal, social interactivity, and long-term operational potential, while gradually broadening our genre mix and user reach. As mentioned in our prepared remarks, we're actively advancing three key titles: Legend of Swordman: Reunion, Xiao Xiao Qi Yu, both of which will be exclusively published by Huya, and our self-developed title, Zhe Dao You Guai Shou.

Several other additional titles are also under preparation. 那总体来看呢，我们整个游戏发行的业务也并非依赖《鹅鸭杀》这样单一的这个产品，而是正在逐步形成多个品类的这个产品矩阵，包括像社交推理、经典武侠，还有休闲消除类等等。在整个推进的节奏上面，我们也会坚持精品化和审慎投入，按照内容的這個预热、产品的这个测试，还有数据的这个验证，逐步放量还有长相长线的运营的这个路径来进行推进，为游戏相关的服务业务提供更多元还有持续的这个增长动能。

We would

like to emphasize that the success of publishing strategy is not dependent on Goose Goose Duck Mobile game alone. It was just a beginning.

We are building a diverse product portfolio across multiple genres, including social deduction, classic martial arts, and casual match-three games. We remain committed to a quality-first approach and disciplined investments, following a phased strategy that includes pre-launch content marketing, product testing, data validation, gradual scaling, and long-term operations.

This approach will enable us to build broader and more sustainable growth drivers for our game-related services.

Our next question comes from Raphael from BOCI. Please go ahead, Raphael.

谢谢管理层接受我的提问。我的问题是关于直播业务的，想请问一下公司怎么看直播业务的当前表现和后续的一个经营策略？以及随着内容投入的进一步优化，相关成本在下半年有多大的改善空间？Thanks management for letting me ask question. I am just wondering how does management assess current streaming performance and future streaming operational strategies?

Following content optimization executions, what is the potential upside for cost savings in the second half of this year? Thank you.

谢谢

Raphael 的提问，这个问题也由我来回答。那从第二季度来看呢，我们整个直播的这个收入大约是在11亿元左右，那同比呢也是低个位数的一个下降，环比呢基本保持一个稳定。那相对行业的这个整体水平，我们整个的这个表现依然是比较稳健的。那从付费的这个结构来看呢，我们付费的这个用户数和 ARPPU 最近几个季度呢，总体都保持在一个相对稳定的一个区间。

In the second quarter, livestreaming revenue were approximately RMB 1.1 billion, down by low-single-digit percentage year over year and broadly stable sequentially. Relative to the broader industry, our performance remained resilient.

Paying user numbers and ARPPU have also remained within relatively stable range over the past several quarters. 那目前的整个行业仍然客观地讲，仍然面临用户付费的这个意愿比较弱，那平台竞争加剧的这些压力。那所以呢，我们也不会单纯地去追求内容的这个投入规模，而是更加的去关注我们主播签约还有我们赛事版权采购的这个实际的回报。那与此同时呢，我们也在重新评估和优化部分的這個主播的这个合作模式和成本的这个结构，我们希望能够来进一步提升我们整个投入和产出的效率。

The industry continues to face pressure from softer user spending and intensified competition among platforms. In this environment, we'll place greater focus on returns from our content investment.

We're actively reviewing our streamer contracts and tournament licensing agreements to make sure we're getting the right returns from our content investments. 那我们也正在推动我们平台的这个娱乐主播和游戏主播之间的这种强强的这些联动，来促进用户在不同的这个内容场景之间的这个流转。那同时呢，我们也通过像广告商单、游戏联运，还有带货这些多元化的这个变现方式，来进一步地去挖掘游戏主播的整个的商业价值。

We're

also strengthening collaboration between entertainment and game streamers to drive cross-category user engagement. At the same time, we're expanding monetization opportunities through branded advertising campaigns, joint game operations, and livestream commerce, helping our game streamers to generate more value from their content and audience.

Our next question comes from Meng from CICC. Please go ahead.

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

Wei Meng.

Hello?

Hello, Wei Meng cannot hear from you.

——利润贡献预计会是在什么时候体现？So let

me translate

my—— Weimeng, 你可以方便中文再重新问一遍吗？刚才那个电话有点断。 啊，好啊，好的好的。我再问一遍啊。我这边想问一下就是毛利率的和其它这个经营的利润的后续的一个趋势，以及说这个游戏发行之后的流水增长对于这个利润的体现大概是一个什么样的看法？OK, let me translate myself.

I would like to ask about the margins, and especially the operating performance outlook, and as the game publishing revenue scales up, when do you expect the profit contribution to start showing up? Thank you.

谢谢

Weimeng 的那个提问，这个问题我来回答吧。从经营表现来看呢，二季度毛利率同比提升了1.2个百分点，Non-GAAP 的经营利润达到1,600万元，同比显著改善，实现较为可观的季度经营盈利。展望未来，随着游戏发行等较高毛利业务占比继续提升，以及投入效率进一步优化，我们认为毛利率和经营利润率总体仍有进一步改善的空间。

Our gross margin improved by 1.2 percentage points year over year in the second quarter. Non-GAAP operating profit reached RMB 16 million, a very significant year-over-year improvement and a quarter with a meaningful level of operating profit.

Looking ahead, as higher-margin business such as game publishing make up a larger share of revenue, we continue to improve spending efficiency, and we see further opportunities to improve both gross margin and operating margin.

Now, we will take our last question today from Rebecca from Morgan Stanley. Please go ahead.

Hi. 感谢管理层给我的这个机会提问。我的问题是有关于投资者回报的。我想请问一下公司近期的股份的回购的进展情况是什么样？以及未来的股东回报方面有何规划？Thanks management for taking my questions.

Could you please share the latest progress of the company's share buyback, and the outline or the plan for the company's shares plans for the shareholder return going forward? Thank you.

谢谢

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

On shareholder returns, we continue to return capital to the shareholders through cash dividends and share repurchases. In the second quarter, we repurchased approximately 3.2 million ADSs, representing approximately 1.4% of our share outstanding of our total outstanding shares.

A portion of these ADSs have already been cancelled, and the remainder will be cancelled as planned. We continue to repurchase shares pursuant to our existing Rule 10b5-1 trading plan.

我们也很高兴地宣布，董事会已批准2026年股票回购计划规模从5,000万美元扩大至1亿美元。回购规模的扩大反映了我们对虎牙业务前景的信心，以及持续提升长期股东价值的承诺。 We're

also very pleased to announce that the board has approved the expansion of our 2026 share repurchase program from $50 million to $100 million. The expanded authorization reflects our confidence in Huya's business outlook and our continued commitment to enhancing long-term shareholder value.

Rebecca, maybe I can add a bit more here. If we calculate at our current market cap of around $554 million plus our $100 million buyback program, that would mean roughly $50 million share repurchases each year if spread over two years.

Combined with at least $30 million in annual cash dividends, that would translate into a shareholder yield of around 14% to 15% per year. Thank you.

Thank you once again for joining us today. If you have further questions, please feel free to contact Huya's Investor Relations through the contact information provided on our website, or Piacente Financial Communications.

This concludes today's call, and we look forward to speaking to you again next quarter. Thank you.

Thank you.

Thank you.