Financial Data and Key Metrics Changes - Total net revenues for the first quarter of 2025 were RMB 1.51 billion, stabilizing year over year and growing quarter over quarter [4][21] - Live streaming revenues decreased to RMB 1.14 billion from RMB 1.26 billion year over year, primarily due to macroeconomic impacts [22] - Game related services, advertising, and other revenues increased by 52.1% year over year to RMB 370 million, driven by higher revenues from gaming related services [23] Business Line Data and Key Metrics Changes - Game related services accounted for 24.6% of total net revenues, up from 16.2% in the same period last year [5] - Gross receipts from game distribution more than doubled year over year, with significant increases in titles like QQ Speed Mobile and League of Legends Mobile [8][32] - In-game item sales reached record GMV, benefiting from expanded SKU offerings and enhanced purchasing experiences [9][33] Market Data and Key Metrics Changes - The company is actively exploring overseas markets, with overseas game related services showing multifold revenue growth in the first quarter [12][36] - The domestic market remains a strong focus, with efforts to deepen engagement with existing games despite fewer major new launches [6][32] Company Strategy and Development Direction - The company is committed to strengthening its live streaming content ecosystem and exploring AI integration in esports experiences [5][19] - Plans to enhance game agency publishing and exclusive distribution models to expand business [33] - The company aims to diversify its business model and create long-term value through AI-driven initiatives [19][17] Management Comments on Operating Environment and Future Outlook - Management expressed confidence that total revenue has bottomed out and anticipates growth in game related services and advertising [40][41] - The company is closely monitoring US listing regulations and potential delisting risks while exploring opportunities in other capital markets [41][42] - Future profit trends will rely on operational improvements and increased investment in self-produced content [47] Other Important Information - The company repurchased 21 million shares for a total of USD 69.8 million as part of its share repurchase program [27] - Non-GAAP net income for the quarter was RMB 24 million, down from RMB 92 million year over year [26] Q&A Session Summary Question: Can management elaborate on the business outlook for game related revenues? - Game related services revenues reached RMB 370 million, driven by increased cooperation with game companies, despite a decline in brand advertising revenues due to fewer tournaments [31][32] Question: What is the outlook for second quarter and full year revenue? - Total revenue is expected to grow this year, with live streaming revenues stabilizing and game related services anticipated to become a future growth engine [40][41] Question: How does the company plan to address geopolitical risks around its listing? - The company is monitoring US listing regulations and assessing potential risks while exploring opportunities in other capital markets [41][42] Question: How should we estimate the company's future profit trend? - Future profit performance will depend on operational results and improvements in cost structures, with expectations for notable improvement in non-GAAP operating results this year [47]

Core Insights - Huya Inc. reported stable total net revenues year-over-year for Q1 2025, driven by growth in game-related services, advertising, and other businesses [3][5][6] - The company is focusing on expanding its international presence and enhancing game-related commercialization capabilities, with overseas game-related services showing significant revenue growth [3][5] - The integration of AI into e-sports experiences is a key strategy, exemplified by the introduction of "Hu Xiao Ai," an AI agent designed to enhance user engagement during tournaments [4][3] Financial Performance - Total net revenues for Q1 2025 were RMB 1,508.6 million (approximately US$ 207.9 million), slightly up from RMB 1,504.0 million in Q1 2024 [6][7] - Game-related services, advertising, and other revenues increased by 52.1% year-over-year to RMB 370.4 million (US$ 51.0 million), accounting for 24.6% of total net revenues, up from 16.2% in the same period last year [5][8] - Live streaming revenues decreased to RMB 1,138.2 million (US$ 156.8 million) in Q1 2025 from RMB 1,260.4 million in Q1 2024, attributed to macroeconomic factors [6][10] Profitability Metrics - The company achieved a net income of RMB 0.9 million (US$ 0.1 million) for Q1 2025, a decline from RMB 71.0 million in Q1 2024 [7][14] - Non-GAAP net income for Q1 2025 was RMB 24.0 million (US$ 3.3 million), down from RMB 92.5 million in the same period last year [15][41] - Gross profit for Q1 2025 was RMB 188.5 million (US$ 26.0 million), with a gross margin of 12.5%, compared to 14.7% in Q1 2024 [10][6] Cost Structure - Cost of revenues increased by 2.9% to RMB 1,320.1 million (US$ 181.9 million) in Q1 2025, primarily due to higher revenue sharing fees and content costs [9][10] - Research and development expenses decreased by 4.1% to RMB 129.5 million (US$ 17.8 million) [11] - Sales and marketing expenses decreased by 20.4% to RMB 60.7 million (US$ 8.4 million) [12] Shareholder Returns - As of March 31, 2025, Huya had repurchased US$ 69.8 million worth of shares under its share repurchase program [5][18] - The company remains committed to returning value to shareholders through dividends and share repurchases [5][18] User Engagement - The number of paying users remained flat at 4.4 million compared to the same period last year [5][7] - Average mobile monthly active users (MAUs) increased to 83.4 million in Q1 2025 from 82.6 million in Q1 2024 [7][6]

Financial Data and Key Metrics Changes - Total net revenues for 2024 were RMB6.08 billion, down from RMB6.99 billion in the prior year [37] - Non-GAAP net income reached RMB269 million for 2024, up from RMB119 million in the prior year, with a non-GAAP net margin of 4.4% compared to 1.7% [38] - Non-GAAP gross margin improved to 30.6% for 2024, up from 11.9% in the prior year [38] - For Q4 2024, total net revenues were approximately RMB1.5 billion, with live streaming revenues at RMB1.12 billion [29][32] Business Line Data and Key Metrics Changes - Revenues from game-related services, advertising, and other segments increased by 145.4% year-over-year to RMB1.33 billion for the full year [7] - In Q4, revenues from game-related services, advertising, and others increased by 99.4% year-over-year to RMB372 million [9] - Live streaming revenues for 2024 were RMB4.75 billion, down from RMB6.45 billion in the prior year [37] Market Data and Key Metrics Changes - The number of paying users in Q4 rose to 4.5 million year-over-year, indicating engagement across the core user base [29] - The company captured over half of the market share for the industry's top-tier in-house produced e-sports events in 2024 [19] Company Strategy and Development Direction - The company is focused on advancing its commercialization transformation, with non-live streaming business revenue accounting for over 20% of total revenue for the full year [56] - Plans to replicate the successful self-organized tournament model to include more popular e-sports titles in 2025 [21] - The company aims to explore new technologies and deepen their applications to improve content creator and user experience [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges in 2024 but highlighted solid performance driven by strategic transformation and new game launches [7] - The company expects live streaming revenue to seasonally decline in Q1 2025 due to typical low seasonality in the industry [68] - Future profitability will depend on improvements in operating results and cost control measures [72] Other Important Information - The company introduced a dividend plan for 2025 to 2027, expecting to distribute a total of no less than $400 million to shareholders [39] - As of December 31, 2024, the company had cash and cash equivalents totaling RMB6.73 billion [37] Q&A Session Summary Question: What factors do we consider when we make shareholder return strategies? - The company emphasized enhancing shareholder returns through a dividend plan distributing no less than $400 million over the next three years, with a cash dividend of $1.47 per ADS for 2025 [44][46] Question: Can management share expectations for the other revenue business growth? - Revenues from game-related services nearly doubled year-over-year, with ongoing enhancements in operational excellence and collaborations with game developers expected to drive future growth [51][56] Question: How does AI impact product monetization strategy and cost structure? - The company is integrating AI solutions to enhance user experience and operational efficiency, with early testing showing increased viewer activity and revenue from interactions [60][64] Question: Can you discuss live streaming revenue trends and overall profitability margin trends? - Live streaming revenue remains weak due to macroeconomic factors, but gross margin improved to 11.4% in Q4, with expectations for future profitability influenced by revenue scale and cost control [68][70]