Core Viewpoint - The financial performance of Huya Live shows a mixed trend, with revenue growth but significant declines in net profit, indicating challenges in maintaining profitability while transitioning to a broader gaming-related service model [11][12][13]. Financial Performance - In Q2 2025, Huya reported revenue of 1.567 billion yuan, a year-on-year increase of 1.7%, while net profit under non-GAAP decreased by 51% to 47.5 million yuan [11]. - For the first half of 2025, total revenue reached 3.076 billion yuan, up 300 million yuan from 3.046 billion yuan in the same period of 2024, but net profit fell by 1.19 billion yuan to 71.5 million yuan [11][12]. Revenue Breakdown - Revenue sources include live streaming and gaming-related services, with live streaming revenue at 1.153 billion yuan, down 6.6%, accounting for 73.6% of total revenue, while gaming-related services and other revenues grew by 34.1% to 414 million yuan, making up 26.4% of total revenue [12][14]. Strategic Transition - Huya's revenue from live streaming has decreased from over 90% to 74%, while gaming-related services and other revenues have increased from 6.6% to 26.4% since the initiation of a three-year strategic plan [13]. - The company aims to expand its business from a pure live streaming platform to a comprehensive provider of gaming-related entertainment and services [13]. Cost Management - In Q2 2025, Huya's cost of revenue increased by 2.1% to 1.354 billion yuan, primarily due to rising revenue sharing and content costs, partially offset by reduced bandwidth and server hosting fees [14]. - R&D expenses decreased by 5.1% to 122 million yuan, while sales and marketing expenses fell by 6.5% to 57.7 million yuan, indicating ongoing cost control efforts [14].