HUYA Inc Q4 2025 Earnings Call - Game Push Validated by Goose Goose Duck Mobile Breakout

Vincent Yu, CEO, HUYA Inc.: 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 the fourth quarter, total net revenues grew by 16% to CNY 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 CNY 6.5 billion, up 7% year-over-year. In the fourth quarter, we recorded a one-off accounting provision. Excluding this provision, SBC and amortization items, we would have seen 3 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.

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 UGI, one of the most legendary names in esports. His return further validates the strengths 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 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.

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 strengths 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 most of the time since its launch. The game quickly became a market sensation and a clear validation of our strategy.

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 Night was fueled by 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 Red Note. This content-driven marketing approach resulted in a much higher ROI that far, far exceeds 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 continues to outperform our expectations in terms of user retention.

Most of our players for this game are college student 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.

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.

In the fourth quarter, 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.

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 a 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.

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.

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 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 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.

Raymond Lei, Acting Co-CEO and CFO, HUYA Inc.: Thank you, Vincent, and hello, everyone. I’ll start with our fourth quarter results, followed by our full-year financial highlights and an update on our shareholder returns. In the first quarter, 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 CNY 66 million provision, which led to a non-GAAP operating loss of CNY 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 CNY 1.74 billion for Q4, up 16% from the same period last year.

Live streaming revenues were CNY 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 CNY 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.

Cost of revenues increased by 30% year-over-year to CNY 1.49 billion for Q4, primarily due to increased revenue sharing fees and content costs, as well as increased costs related to in-game items. Within these, revenue sharing fees and content costs rose by 10% year-over-year to CNY 1.28 billion, reflecting growth in our top line. Gross profit was CNY 245 million 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 CNY 248 million, and the non-GAAP gross margin was 40.3% for Q4.

Research and development expenses were CNY 123 million for Q4, largely flat year-over-year. Sales and marketing expenses increased by 24% year-over-year to CNY 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 CNY 126 million for Q4, primarily due to a CNY 66 million provision related to a receivable arising from a 2021 arrangement with a broadcaster, which was deemed to have a heightened risk of non-recoverability. Other income was CNY 80 million for Q4, compared with CNY 4 million in the same period last year, primarily due to increased government subsidies.

Operating loss narrowed to CNY 65 million for Q4, compared with a loss of CNY 93 million for the same period last year. Excluding share-based compensation expenses and the amortization of intangible assets from business acquisition, non-GAAP operating loss narrowed to CNY 36 million for Q4, compared with a loss of CNY 69 million in the same period last year. Interest income was CNY 32 million for Q4, down from CNY 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 CNY 81 million for Q4, compared with CNY 151 million for the same period last year. Primarily due to the recognition of impairment charge on the company’s U.S. investments attributable to the weak financial performance of certain investees.

Net loss attributable to HUYA Inc. narrowed to CNY 180 billion for Q4 compared with loss of CNY 172 billion for the same period last year. 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 CNY 8 billion for Q4 compared with the non-GAAP net income attributable to HUYA Inc. of CNY 1 billion for the same period last year, primarily due to the provision item and the lower interest income as explained earlier. Diluted net loss per ADS was approximately CNY 0.51 for Q4. Non-GAAP diluted net loss per ADS was CNY 0.04 for Q4.

As of December 31, 2025, the company has cash and cash equivalents, short-term deposits and long-term deposits of CNY 3.82 billion, largely flat compared to September 30, 2025. Moving on to our full year 2025 results. Total net revenues were CNY 6.5 billion for 2025, increasing by 7% from the prior year. Live streaming revenues were CNY 4.59 billion for 2025 compared with CNY 4.75 billion for the prior year. Game related services, advertising and other revenues were CNY 1.91 billion for 2025 compared with CNY 1.33 billion for the prior year. Non-GAAP gross profit was CNY 884 million 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 CNY 99 billion for 2025 compared with CNY 269 billion for the prior year. 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 at the lower interest income rather than any change in our core business performance. Non-GAAP diluted net income per ADS was CNY 0.43 for 2025 compared with CNY 1.15 for the prior year.

Net cash used in operating activities was CNY 176 billion for 2025 compared with net cash provided by operating activities of CNY 94 billion for the prior year, primarily due to decreased interest income and 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. 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 ordinary share or $0.135 per ADS, for a total amount of approximately $31 billion.

In addition, under our up to $100 billion share repurchase program, we have repurchased 22.9 billion HUYA shares with an aggregate consideration of $75.5 billion as of the end of December 2025. With that, I’d like to open the call to your questions.

Moderator, Call Moderator, HUYA Inc.: 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 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 Rebecca Xu from Morgan Stanley. Hi, Rebecca. Your line is open. Please go ahead.

Rebecca Xu, Analyst, Morgan Stanley: Hi. Hi. 可以的。

Vincent Yu, CEO, HUYA Inc.: 可以。

Rebecca Xu, Analyst, Morgan Stanley: 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。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 and how should we think of the future trend and on operation on OP and net profit. Thank you.

Vincent Yu, CEO, HUYA Inc.: 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6,600万的一次性拨备，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3,600万。第二项是我们确认了大概8,100万元的投资减值，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，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，更偏向是一次性影响。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。

Raymond Lei, Acting Co-CEO and CFO, HUYA Inc.: Thank you for the question. The fluctuation in our profit this quarter was mainly driven by two items. First, we recorded a CNY 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 CNY 36 million for the fourth quarter. Secondly, we recorded impairment loss of investments of CNY 81 million related to companies that were previously invested in and 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 operating trends. Going forward, we’ll continue to perform regular impairment review in accordance with accounting standards. 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 Meng Wei from CICC. Hello, Meng Wei please go ahead.

Meng Wei, Analyst, CICC: 感谢管理层，我有两个关于鹅鸭杀的问题。第一个的话是能否分享一下目前关于这个游戏的DAU留存、ARPU流水这些等等的情况，以及我们对于这个游戏今年有什么推广的KPI。另外的话就是想问一下，公司打算如何去延长这个游戏的生命周期。So 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 and revenue and etc. Also, what’s the KPIs for 2026? Secondly, how does the management think about extending the game life cycle from here? Great, thank you.

Vincent Yu, CEO, HUYA Inc.: 感谢魏萌的提问，我来简要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。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的水平，我们整体整个的长线留存也是超出我们的预期的。往后面来看，我们随着暑期旺季的到来，还有我们在产品端的运营的持续深化，我们也预计我们的DAU仍然有进一步持续提升的空间。另外一方面，在商业化方面，这个阶段我们还是保持着一个相对比较克制的策略，商业化的释放内容目前也比较有限，因此我们看到日常的ARPU还是处在一个比较低的水平，但是在一些活动的节点，ARPU也会有一个大幅的增长。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。关于挖掘长期的潜力，还有延长生命周期，我们的主要战略主要是围绕三个点来展开的。第一方面，我们会保持一个紧凑的内容的持续迭代。第二方面，我们会多端地去寻找新的增量，包括我们微信的小游戏版本，预计也会在今年年内上线，我们也有望能够为我们整个活跃用户的提升带来一个非常显著的增长。第三个，就是稳步地去构建我们整个游戏的UGC生态系统。目前我们也具备了UGC编辑器的基础能力，后续我们也会持续地去完善相关的功能，来进一步地把用户卷进来，丰富我们整个游戏的玩法。谢谢。

Raymond Lei, Acting Co-CEO and CFO, HUYA Inc.: 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. As mentioned earlier, we are very proud that two months after its 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 additional 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 to give our users the enriched UGC experience within the game. Thank you. Thank you. Our next questions come from Ritchie Sun from HSBC. Hello, Richie, please go ahead.

Ritchie Sun, Analyst, HSBC: Thank management 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, and what are the tangible results over there?

Thank you.

Vincent Yu, CEO, HUYA Inc.: 感谢Richie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现有的业务，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Delta Force Map Tool，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中，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，比如说我们结合鹅鸭杀这个IP，也将即将推出一个AI智能硬件。与此同时，大家也都知道最近OpenClaw也非常火，我们也在探索将OpenClaw，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，比如金铲铲之战，包括前面讲到的鹅鸭杀这些热门IP游戏里面。

Raymond Lei, Acting Co-CEO and CFO, HUYA Inc.: Thank you for the question. AI is something every company should think about. For us, it’s 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, and that number goes up to 80% for the very best AI live streaming channels. This year, we’ll 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.

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 it was recommended on many of the official community channels. As we continue to iterate our AI capabilities, we are working on applying AI-powered real-time navigation into this map tool this month to expand user reach and engagement. 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 OpenClaw, 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 Golden Spatula. Thank you.

Moderator, Call Moderator, HUYA Inc.: Thank you. We will take our next question from Nelson Cheung from Citigroup. Hi, Nelson, please go ahead.

Nelson Cheung, Analyst, Citigroup: Hey, Vincent Yu, Thomas Chong, Margaret, Hanyu Liu. 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? 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.

Vincent Yu, CEO, HUYA Inc.: Okay, now

Moderator, Call Moderator, HUYA Inc.: Thank you. Our next question comes from Yiwen Zhang from China Renaissance. Hi, Yiwen. Please go ahead.

Yiwen Zhang, Analyst, China Renaissance: 诶，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波动的影响，但本季度内的毛利还是有不错的增长。想问一下管理层怎么，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 negative impact from provision impairment in Q4, there was notable improvement on our gross profit margin during the quarter.

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

Vincent Yu, CEO, HUYA Inc.: 谢谢Yiwen Zhang。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。

Raymond Lei, Acting Co-CEO and CFO, HUYA Inc.: 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 fourth quarter performance. As game publishing and in-game item sales business continue to grow, and as operating leverage gradually improve, we expect to see continued gross margin improvement.

Moderator, Call Moderator, HUYA Inc.: Thank you. We will take our last question today from Maggie Ye from CLSA. Maggie, please go ahead.

Maggie Ye, Analyst, CLSA: 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。那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, and my question is related to game virtual item sales.

Beyond the top line growth this quarter, could management share any, material progress regarding these segments 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.

Vincent Yu, CEO, HUYA Inc.: 感谢Maggie的提问。最后一道题我来回答这个问题。这个季度呢，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。同时呢，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。第一个呢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。上线首个小时呢，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。其次呢，我们在整个渠道结构的优化，预计未来我们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。第三个呢，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。

Raymond Lei, Acting Co-CEO and CFO, HUYA Inc.: Thank you for the question. Overall our in-game item business delivered a very solid quarter with very strong growth and improved profitability. In the fourth quarter of 2025, revenue from in-game item sales continued to grow by over 200% year-over-year. As the business scaled, 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 CNY 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.

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 the industry. Thank you.

Moderator, Call Moderator, HUYA Inc.: 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.