Group 1 - The core point of the article highlights that Kingsoft Corporation (03888) experienced a stock price increase of over 5%, reaching HKD 33.02, with a trading volume of HKD 271 million [1] - On January 7, Kingsoft's subsidiary, Kingsoft Game, launched the mobile game "Goose Goose Duck" for full platform public testing [1] - By January 13, it was reported that "Goose Goose Duck" gained over 10 million new users within six days of launch, with peak online users surpassing historical records on Steam, estimated between 700,000 to 1,000,000 [1] Group 2 - Galaxy Securities released a research report indicating that Kingsoft focuses on the "Jianxia Qinyuan" IP, with the PC game "Jianwang 3" maintaining vitality through continuous operations [1] - The cross-platform version "Jianwang 3 Wujie" has shown significant user return after its launch [1] - The company is actively expanding into new categories such as science fiction and ACG (Anime, Comic, and Games), and is promoting game exports to reduce reliance on traditional martial arts genres [1] - However, the new game market shows performance divergence, leading to short-term pressure on earnings [1] - In the third quarter, revenue from online games and other businesses decreased by 47% year-on-year, primarily due to declining revenues from existing games like "Jiexianji," while newly launched games are still in the early stages of market influence [1]

Core Insights - Huya Inc. is set to launch the mobile version of the social deduction game Goose Goose Duck on January 7, 2026, marking a significant step in its game publishing strategy [1] - The game has garnered over 10 million preregistrations as of November 2025, aided by Huya's strong streamer influence and content-driven marketing [2] - The launch highlights Huya's momentum in game publishing and its ability to leverage a robust content ecosystem and industry partnerships [3] Company Overview - Huya Inc. is a leading provider of game-related entertainment and services, offering live streaming, video content, and a variety of services across gaming and e-sports [4] - The company has developed a strong entertainment ecosystem powered by AI and advanced technologies, catering to gamers, content creators, and industry partners [4] Partner Overview - Kingsoft Shiyou, co-publisher of Goose Goose Duck, focuses on premium game development and the operation of high-quality IPs, with a commitment to building an IP-driven entertainment ecosystem [5]

Financial Data and Key Metrics Changes - Total net revenues for Q2 reached approximately RMB 1,570 million, showing an increase both year over year and quarter over quarter [20][21] - Live streaming revenues stabilized with a slight sequential increase to RMB 1,150 million, while game-related services, advertising, and other revenues grew to RMB 414 million, accounting for 26.4% of total net revenues [20][22] - Non-GAAP net income was RMB 48 million, marking the sixth consecutive profitable quarter [21][26] Business Line Data and Key Metrics Changes - Game-related services, advertising, and other revenues increased by 34.1% year over year, reflecting strong demand and deepened cooperation with Tencent and other gaming companies [20][22][55] - Gross billing from game-related services increased by 90% year over year, indicating significant growth potential in this segment [9][12] Market Data and Key Metrics Changes - The number of domestic paying users remained flat at 4.4 million, excluding those who made in-game purchases through game distribution [20] - The company reached tens of millions of monthly active users internationally, indicating growth in overseas markets [16][44] Company Strategy and Development Direction - The company aims to deepen its engagement in the gaming industry, strengthen collaborations with industry partners, and expand its business boundaries [18] - A focus on AI initiatives is evident, with plans to enhance user experience through AI-powered features and services [17][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory of total net revenues, driven by strong growth in game-related services and advertising [55] - The company expects live streaming revenues to remain steady while game-related services will be the main driver for future growth [55] Other Important Information - The company repurchased 22.8 million shares for a total consideration of USD 75.4 million as part of its share repurchase program [27] - Special cash dividends of approximately USD 340 million were distributed during the second quarter [28] Q&A Session Summary Question: Updates on game-related services business - Management highlighted the expansion of collaborations with game companies, increasing the portfolio of jointly distributed games to over 300 titles, and a 90% year-over-year increase in game-related services [31][34] Question: Details on the Delta Force event - The inaugural Delta Force Diamond Champions showcased advanced streaming technology and offered viewers a chance to win in-game items, enhancing the overall experience [38][40] Question: Progress on overseas operations - The company is reaching tens of millions of monthly active users internationally and is well-positioned to capture opportunities in the growing overseas game-related services market [42][44] Question: Future plans on AI development - AI is becoming embedded in operations, with initiatives like the AI agent Hu Xiaoai enhancing user experience during esports streams and the Huya I Superbot providing virtual sparring and emotional companionship [48][50] Question: Overall trend of live streaming business and revenue expectations - Live streaming revenue is expected to remain stable, while game-related services are anticipated to drive overall revenue growth in the second half of the year [53][55]