HUYA(HUYA) - 2024 Q2 - Quarterly Results

Financial Performance - Total net revenues for Q2 2024 were RMB1,541.6 million (US$212.1 million), a decrease of 16.1% from RMB1,837.8 million in Q2 2023[2] - Net income attributable to HUYA Inc. was RMB29.6 million (US$4.1 million) for Q2 2024, compared to RMB20.3 million in Q2 2023, representing a year-over-year increase of 46.0%[4] - Gross profit for Q2 2024 was RMB214.9 million (US$29.6 million), with a gross margin of 13.9%, down from 15.7% in Q2 2023[3] - Total net revenues for the three months ended June 30, 2024, were RMB 1,541,582, representing a 2.5% increase from RMB 1,504,047 in the previous quarter[20] - Live streaming revenues reached RMB 1,233,064 for the three months ended June 30, 2024, compared to RMB 1,260,444 in the previous quarter, indicating a decrease of 2.2%[20] - Game-related services, advertising, and other revenues increased to RMB 308,518 for the three months ended June 30, 2024, up 26.6% from RMB 243,603 in the previous quarter[20] - Operating loss for the three months ended June 30, 2024, was RMB 26,037, an improvement from a loss of RMB 38,516 in the previous quarter[20] - Net income attributable to HUYA Inc. for the three months ended June 30, 2024, was RMB 29,602, compared to RMB 71,033 in the previous quarter, reflecting a decrease of 58.3%[21] - Non-GAAP net income attributable to HUYA Inc. for the three months ended June 30, 2024, was RMB 96,996, down from RMB 92,490 in the previous quarter[25] - Basic net income per ADS for the three months ended June 30, 2024, was RMB 0.13, compared to RMB 0.30 in the previous quarter[21] Operational Highlights - Average mobile MAUs for Huya Live increased to 83.5 million in Q2 2024, up from 82.9 million in Q2 2023, driven by successful e-sports events[2] - Revenues from game-related services, advertising, and other businesses rose by 152.7% year-over-year to RMB308.5 million (US$42.5 million), accounting for 20.0% of total net revenues[2] Expenses and Cost Management - Total operating expenses decreased by 26.3% year-over-year, contributing to improved overall operating results[4] - Research and development expenses decreased by 11.5% year-over-year to RMB128.7 million (US$17.7 million) in Q2 2024[4] - Research and development expenses for the three months ended June 30, 2024, were RMB 128,710, an increase from RMB 135,106 in the previous quarter[20] Shareholder Returns and Capital Management - The company repurchased 17.1 million shares for a total of US$56.7 million as of June 30, 2024, under its share repurchase program[5] - A special cash dividend of approximately US$250 million has been declared, equating to US$1.08 per ordinary share or ADS, payable on or around October 25, 2024[5] Cash and Asset Management - Cash and cash equivalents as of June 30, 2024, were RMB8,193.3 million (US$1,127.4 million), down from RMB9,419.8 million as of March 31, 2024[5] - Total current assets decreased from RMB 8,150,611 in December 2023 to RMB 7,596,525 in June 2024, a decline of approximately 6.8%[15] - Total assets decreased from RMB 12,924,354 in December 2023 to RMB 11,344,498 in June 2024, representing a reduction of about 12.2%[19] - Total liabilities decreased from RMB 2,299,755 in December 2023 to RMB 1,879,518 in June 2024, a decrease of approximately 18.3%[16] - Shareholders' equity decreased from RMB 10,624,599 in December 2023 to RMB 9,464,980 in June 2024, a decline of about 10.9%[19] - Cash and cash equivalents increased from RMB 511,973 in December 2023 to RMB 1,005,513 in June 2024, an increase of approximately 96.5%[15] - Accounts receivable, net decreased from RMB 6,851,160 in December 2023 to RMB 5,567,750 in June 2024, a decline of about 18.7%[15] - Total non-current assets decreased from RMB 4,773,743 in December 2023 to RMB 3,747,973 in June 2024, a reduction of approximately 21.5%[16] - The company reported a decrease in accumulated deficit from RMB (2,052,336) in December 2023 to RMB (1,951,701) in June 2024, indicating an improvement in financial health[18] - The company’s total liabilities and shareholders' equity decreased from RMB 12,924,354 in December 2023 to RMB 11,344,498 in June 2024, a decline of about 12.2%[19] - The company’s additional paid-in capital decreased from RMB 12,000,100 in December 2023 to RMB 10,606,904 in June 2024, a decline of approximately 11.6%[18] Corporate Actions - The company has retrospectively adjusted its financial results due to a business combination under common control[26] - HUYA Inc. announced an extension of its share repurchase program and a special cash dividend[26]