Good day and good evening, and thank you for standing by. Welcome to Huya's fourth quarter and fiscal year 2025 earnings webinar. I'm Han Yu Liu from the Huya Investor Relations. At this time, all participants are in listen-only mode. Please be advised that today's webinar is being recorded. The company's financial and operational results were issued earlier today and are posted online you can also view the earnings press release by visiting the IR website at IR.huya.com a replay of the call will be available on the IR website soon participants of management on today's call will be mr. Vincent Xunhonghuang our acting co-ceo and senior vice president mr. Raymond Peng Lei our acting co-ceo and CFO and miss Margaret Shi head of capital market management will begin with prepared remarks and the call will conclude with a Q&A session before we continue please note that today's discussion will contain forward-looking statements made under the safe cover provisions of the US private securities litigation reform Act of 1995 forward-looking statements involve inherent risks and uncertainties as such The company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's latest annual report on Form 20F and other public filings, as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required on applicable law. we also know that who else earnings press release and this conference call include discussion of audited get financial information as well as audited non-gap financial measures we express release contains a reconciliation of the audited non-gap measures to the audited most of directly comparable gap measures with that and please turn the court over to our co-CEO Mr. Hwang please go ahead 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 RMB 1.74 billion the highest in the last 10 quarters while our live streaming business remain stable revenues from game related services advertising and other businesses grew 59% year-over-year demonstrating our successful transformation to the game gaming space on a four-year basis total net revenues return to growth and reached RMB 6.5 billion up 7% year-over-year in the fourth quarter we recorded and one of accounting provision excluding this provision sbc and amortization items we would have seen three 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 who yes total maus were approximately 160 million we are also pleased to see our platforms influence continue to grow in february we welcome the return of ugi one of the most legendary names in esports his return further validate the strengths of huya's esports content ecosystem and our ability to attract and support top tier streamers the influence of our streamer ecosystem continue to expand with more top streamers returning to huya and many of our streamers gaining recognition across our platforms including wechat channels doing and beyond We are no longer just a game live streaming platform, but have been involved into a content-driven integrated game services provider with broad cross-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 who are into a more integrated game relative 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 model that rely primarily on user acquisition we leverage the strengths of our content ecosystem and take a content driven approach to publishing whose stock model launched in january delivered outstanding results attracting over 5 million new users within the first 24 hours and surpassing 10 million within six days and has ranked number one on the ios free game chart for the most of the time since its launch the game quickly become a market sensation and a clear validation of our strategy since pre-registration stage we have been working closely with top streamer across multiple platforms and produce two season of a live streaming variety show whose car whose car night with feel strong social media buzz and anticipation prior to launch we saw very strong user-generated content chanting 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 doing and red note this content driven marketing approach resulted in a much higher ROI that for far exceed traditional traffic acquisition channels this and underscore our effectiveness in content driven marketing for new game launches and maintaining traction over time we are pleased to see that two months after this launch who's who stuck mobile continues to stay at the top of the chart and continue to outperform our expectation 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 but with major game content update schedule for later this year we expect monetization to increase afterwards the successful debut of goose goose duck mobile demonstrates 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 strengths of we ask ecosystem our other game reader gives busyness is including in-game item sales and advertising continue to deliver solid performance for in-game item sales revenue continue to grow year-over-year increasing by more than 200% driven by new titles such as peace keeper edit and crossfire mobile as the business further scale we continue to expand and deepen our collaboration with game developers in January we became the first platform to secure inclusive free sale rights for the MVP scheme 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 the across more top tier titles to further enhance user satisfaction on the advertising side we ask content driven marketing capabilities are also gaining broader recognition from leading game developers including tension and that is in the fourth quarter we hosted nest net is fantasy westward journey mobile who 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 deliver solid result across both licensed and self-produced events in Q4 during the quarter we offered user close to 100 licensed tournaments as well as around 40 self-produced tournaments and and variety shows one key highlight came in december when we hosted the demacia cup for the first time one of the core professional tournament in the league of religion ecosystem this also marked the first time that the official league operation organizer has granted hosting rights to a third-party live streaming platform it reflects strong recognition of fuya's event planning operational and content production capabilities and marks our evolution from an inclusive 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 is that new bus for the game in item 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 meant meaningful progress in AI-powered live streaming. With a growing number of production featuring prominently on viewership charts, we have integrated AI hosts into our eSports programs who are equipped with realistic human-like avatars and capable of professional-level commentary and interaction this visual host engaged with viewer comment in real times fostering strong audience resonance this has been particularly well-received amount users of bleeding game categories such as League of legend and CSGO driving longer viewing time and deeper community engagement we 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 our delta force map tool will introduce a real-time navigation feature powered by our context-aware multimodal AI capabilities enabling smoother game play 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 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 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 return to growth and further enhance our profit profile looking ahead we will further scale our footprint across the entire gaming value chain With our growth momentum on the robust and sustained upward trajectory, we are poised to embark on an ambitious new chapter of sustainable, high-quality development for With that, I will now turn the call over to our co-acting CEO and CFO, Raymond. He will share more details on our results. Raymond, please go ahead.

Thank you, Vincent. and hello everyone. I'll start with our fourth quarter results, followed by our four-year financial highlights and an update on our shareholder returns. In the fourth 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 RMB 66 million provision, which led to a non-gap operating loss of RMB 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 R&B 1.74 billion for Q4, up 16% from the same period last year. Live streaming revenues were R&B 1.15 billion for Q4, up 2% from the same period last year, primarily due to higher average spending per pay-in user for live streaming services. The number of domestic pay-in 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, services, as well as overseas paying users. Game-related services, advertising, and other revenues were R&B 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 the overseas. Cost of revenues increased by 30% year-over-year to R&B 1.49 billion for Q4, primarily due to increased revenue sharing fees and the content costs, as well as increased costs related to game items. Within these, Revenue sharing fees and accounting costs rose by 10% year-over-year to R&B 1.28 million, reflecting growth in our top 9. Growth profit was R&B 245 million for Q4, up 44% from the same period last year. cross margin was 40.1 percent for Q4, improving from 11.4 percent from the same period last year. Excluding share-based compensation expenses, non-gap gross profit was R&B 248 million, and non-gap gross margin was 40.3 percent for Q4. Research and development expenses were R&B $123 million for Q4, largely flat year-over-year. Sales and marketing expenses increased by 24% year-over-year to R&B $78 million for Q4, primarily due to increased marketing and promotional efforts, including pre-launch preparations for Goods Goods Dark Mobile. General and administrative expenses increased by 55% year-over-year to R&B 126 million for Q4, primarily due to a R&B 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 R&B 18 million for Q4 compared with R&B 4 million in the same for the same period last year. Primarily due to increased government subsidies, operating loss narrowed to R&B 65 million for Q4 compared with a loss of R&B compared with a loss of R&B 93 million for the same period last year. Excluding share-based compensation expenses and the application of internal assets for business acquisition, like gap operating loss narrowed to R&B $36 million for Q4 compared with a loss of R&B $69 million in the same period last year. Interest income was R&B $32 million for Q4 down from R&B $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 R&B $81 million for Q4 compared with R&B $151 million for the same period last year, primarily due to the recognition of amendment charges on the currency investments, attributable to the weak financial performance of certain USPs. That loss attributable to Huya Inc. narrowed to R&B 180 million for Q4 compared with loss of R&B 172 million for the same period last year. Excluding share-based compensation expenses, impairment loss of investment, and the application of incentive asset for business acquisitions, net-of-income taxes, long-gap net loss attributable to Huya Inc. was R&B 8 million for Q4, compared with long-gap net income attributable to Huya Inc. of R&B 1 million for the same period last year. primarily due to the provision item and the lower interest income as expected earlier. Diluted net loss per ADS was approximately R&B 0.51 for Q4, long-gap diluted net loss per ADS was R&B 4 cents for Q4. As of December 31, 2025, the company has cash-and-cash equivalents, short-term deposit and long-term deposit of R&B 3.82 billion, largely flat compared to September 30, 2025. Moving on to our full year 2025 results, total net revenues were R&B 6.5 billion for 2025, increasing by 7% from the prior year. Live streaming revenues were R&B 4.59 billion for 2025, compared with R&B 4.75 billion for the prior year. Gave-related services, advertising, and other revenues were R&B $1.91 billion for 2025, compared with R&B $1.33 billion for the prior year. Long-gap gross profit was R&B $884,000,000 for 2024.5, up 7% from the prior year. Long-gap gross margin remained flat at 30.6% for 2025. Long-gap net income attributable to Huya Inc. was R&B 99 million for 2025, compared with R&B 269 million for the prior year, and the long-gap 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. Long-gap bannuti net income ADS was R&B 0.43 for 2025, compared with R&B 1.15 for the prior year. Net cash used in operating activities was R&B 176 million for 2025 compared with net cash provided by operating activities of R&B 94 million 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 earning price 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 US$0.135 per auditor share or US$0.135 per ADS for a total amount of approximately U.S. dollar $31 million. In addition, under our up to U.S. dollar $100 million share repurchase program, we had repurchased 22.9 million Huya shares with a greater consideration of U.S. dollar $75.5 million as of the end of December 2025 mr. I would like to open the call to your questions thank you and hello everyone if you are dialing in by phone please press 5 to ask a question then press 6 to unmute yourself if you are accessing

the phone from the Tencent meeting for both 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.

Hi, thank you for your question. Can you hear me? Can you hear me? Okay, thank you for your question. Thank you for your question. My question is about the budget and the investment cost. It is also the main reason for利润專. If you have any questions about these projects, and the background of the reason? I would like to ask if the solution is not possible. I will translate to myself, thanks management for taking that question. We see profit frustrations mainly driven by provisioning and investment impairments. Could management share the composition and underlying reasons for this outcome? And how should we think of the future trend and operation, Thank you.

Second, we should have the total interest of 8100 million in the stock market. This is the same with the stock market. This is the impact of our net income. At most of the two things, the two are all the管理 firm through the bill of cash flow and through the bank, which will be a real money market. This is the same with the stock market. This is the impact of net income. 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步减值的大量资产。 Thank you for the question.

The fluctuation in our profit is caught as many driven by two items. First, we recorded a 66 million RMB one-off provision related to a receivable arising from 2021 arrangement with Broadcaster. This was recorded in GNA and contributed materially to our non-GAAP operating loss of RMB 36 million for the fourth quarter. And secondly, we recorded impairment loss of investments of 81 million RMB related to companies that were previously invested in and as underperforming. This contributed to our net loss. So overall, these two items are non-cash accounting adjustments based on management's highly prudent and a critical evaluation. So from our perspective, these are more like one-off impacts that do not reflect our cooperating trends. So going forward, we'll continue to review, to perform regular impairment review in accordance to accounting standards. But right as of now, based on management's current judgment, we don't see any additional impairment required at that moment. Thank you.

Thank you. Our next question comes from Wai Meng from CICC. Hello, Wai Meng. Please go ahead.

Thank you. So thanks for taking my question. My question is about GoSgo Stock. First of all, could you maybe share some color on the current metrics like DAEU retention, our pool and revenue, etc., and also what's the KPIs for 2026? And secondly, how does the management think about extending the game lifecycle from here?

Thank you for your question. 整个iOS的免费的下载榜 在处在一个潜力这样的水平 我们整体整个的长线的流程 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的深化 我们也预计我们的DAO 仍然有进一步的持续提升的空间 另外一方面在312方面 这个阶段我们还是保持了一个 相对比较克制的这样的一个策略 商业化的释放的内容我们目前也比较有限 因此我们看到日常的UP还是处在一个比较低的水平 但是在一些活动的节点UP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限 我们也会逐步的把日常的UP给拉起来 Okay, that 关于挖掘长期的潜力 还有延长生命周期 这个我们的主要的战略 就是围到三个点来展开的 那第一方面我们也还是前面讲到的 我们会保持一个紧凑的 这个内容的持续的迭代 那第二方面我们会多端地去 寻找新的增量 那包括我们微信的小游戏的版本 预计也会在今年的年内 我们会上到线上 那我们也有望能够为我们整个的这个活跃用户的这个提升 带来一个非常显著的一个增长 第三个呢就是稳步的去构建我们整个游戏的这个UGC生态的这个系统 那目前我们也具备了UGC的这个编辑器的这个基础能力 那后续我们也持续的会去完善相关的这个功能 来进一步的把用户卷进来之后来丰富我们整个游戏的这个玩法 好 谢谢 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 this launch, the game is still at the very top of the iOS 3 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 output 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 output 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 lifecycle extension, we are focused on three things. First, keeping a rapid pace of content updates. Second, gaining extra user growth across multiple platforms. We expect to launch WeChat minigame 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. And our next questions come from Richie Sun from HSBC. Hello Richie, please go ahead.

Thank you so much for joining us today, thank you Vincent and Raymond, thank you Margaret and Hanyu. I'd like to ask a question about the company in the AI industry, especially in the AI industry, and in the AI software, and in the internet. Thank you management for taking my questions. I want to ask about AI. So 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?

Okay. Thank you Richie. The question is from me. I will answer this question. I will answer this question. In fact, in the entire environment, AI is that every company I need to think about. 一个问题 那我们在AI战略的这个主要也分为赋能我们等一些现有的这个业务 还有就是我们怎么样去探索一些新的赛道这两个方向 那在赋能我们这个自由业务方面呢 我们前面也有提到说AI的这个直播间包括我们AI工具的这个表现还是非常的这个亮眼的 那目前我们AI直播间呢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直播间在人均的这个观看时长7天的这个流程还有归因的这个DAU这些核心的指标上面平均呢都叫同类的品类的这个直播间都高出了40%表现的那个最突出的一些直播间最高可以高到80%左右那今年呢我们也将继续推出纯AI驱动的这个直播间的这个内容能力 还有提升我们整个运营的效率 来进一步提高 我们在平台整体流量中 这样的一个占比 那另外一方面 在AI的游戏工具服务方面 我们也取得一个比较积极的进展 那上个季度 我们也推出了三角洲行动的地图 这样的工具 为玩家提供更加丰富的 沉浸式的这样的一个3D跑图 这样的环境 来帮助他们更快的去熟悉和更好的去探索整个游戏 那我们也把这个工具放到了海外 结果发现也大受欢迎 也得也被那个游戏官方给关注到了 并且他们在官方的社区 也对我们整个游戏工具做了一个推荐 那从因此呢我觉得对于AI技术的这个 持续的迭代 我们也致力于说相当于说在今年的三月份 We also have a AI-based engine to get to the software and to help the player to the player's game in the game. To improve the customer's ability and the ability to know the player. In the other hand, we also have to build AI-based software and AI-based software. For example, we have to use the IP-based software and we will be able to use AI 的智能硬件 同时大家也都知道 最近 OpenCrawl 也非常火 我们也在探索 将 OpenCrawl 和虎牙 全面积累的整个数字 技术的能力 来相结合 来融入到我们整个的 游戏的场景里面 来提升整个的互动体验 并且能够支持更多的 of this sort of a certain design. In the future, we will also plan to build out more of the tools and tools to be able to grow together in more of the games. including the other in the U.S.A. in the IP games.

Thank you for your question. AI is something every company should think about. For us, it's about two things. One is empowering our existing business, and two is exploring new opportunities. So for our existing business, both AI-powered live streaming channels and AI gain 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 IV's Mac tool, which provided very rich, immersive 3D environment for players to quickly get familiar and better navigate the game. So we also launched this tool to the overseas market, and it was very well received. by international users, it draw great attention from Games' official team and was recommended on many of the official community channels. So as we continue to iterate our AI capabilities, we are working on applying AI-powered real-time navigation into this map tool this month, further expand user reach and engagement. Additionally, we are developing AI hardware and AI-interactive products, including AI-enabled smart hardware based on Goose with Stark IP at the same time we're exploring different ways to integrate new technologies such as open claw multi agent systems virtual live streamers into party game scenarios to enhance interactivity and support more customized gameplay experiences for Goose with Stark going forward we also plan to create more AI driven companion tools for other popular titles, such as Battle of Golden Spadger. Thank you.

Thank you. We will take our next question from Nelson Chong from Citibank. Hi, Nelson, please go ahead.

Hi, Vincent Chong, Raymond Chong, Margaret, and Yu,晚上好. Thank you. Thank you. We will take our next question from Nelson Chong from Citibank. Nelson, please go ahead. Hi, Vincent Chong, Raymond Chong, Margaret, and Yu,晚上好. And in the future of the game, do we have an increase in the future of the game-publishing plan and the release schedule for the game-publishing plan? So let me translate myself. Thanks management for taking my question. Can management share your future strategy of your game-publishing business? The name is the 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.

Okay, thank Nielsen's question for the question. That's the question that I mentioned in the game. It gave us a more useful information and evidence for the game. In the game of the game, we will be able to promote the content of the content of the game. That's why we're in the business of the game. This is perfect for the content of the game. 这个是我们入局的一个最佳的窗户。 那我们也我们不单纯的去依靠买量 而是依托我们在短视频直播 还有社区构建一个完整的这个宣发的这个网络 那合作上呢我们坚持以独代为核心 只也能精准的验证我们整个的转化的这个效率 并且呈淀出可以复制的这个长线的这个发行的方法 论 那在产品的储备和运营上面呢 然后我们后续为多个产品的推进,我们也提供了有力的支撑。 基于这些情况,我们预计今年会有多款小游戏还有手游的陆续上线。 选品上面我们也会高度聚焦内容属性强,具备电竞还有中益潜力的这些游戏。 以这个藉此来最大化的去发挥我们整个平台的优势,来实现这个长线的运营。 从战略看的我随着我们公司持续的去推动我们多元化业务多元化,突破这个传统直播业务的边界,那游戏发行也会成为驱动我们增长的整个的关键的引擎,那尽管具体的收入贡献还需要等待产品上线后,我们才能够有一个更加清晰的预判,但是我们也相信从长远的角度来看呢, The company must be a key component of the company's production in the future.

On thin publishing, we remain firmly committed to a content-driven strategy. The industry is rapidly shifting towards content-driven publishing, which fits very well with the Hoya strength in live streaming, short-form video content, and community engagement. Rather than relying mainly on traditional user acquisition, we are building a more integrated publishing model driven by content. Having publishing rights help us to better measure user conversion efficiency and build a scalable publishing capability. From a pipeline perspective, we have a number of mini-games and mobile games in the pipeline for the year. Most of them either have very strong content appeal or clear esports and entertainment potential. This is where our strength in live streaming and esports content can be fully leveraged. We see game publishing as the most important driver of our growth as we continue to diversify beyond our traditional live streaming business. While we might have better visibility into revenue contribution after the games are launched, we do have a very strong conviction that our publishing business will be an important part of our revenue mix over time.

Thank you. Our next question comes from Yi Wen Zhang from China Renaissance. Hi, Yi Wen, please go ahead.

Thank you so much for your question. Thanks for taking my question. The question is our margin. We note, despite some massive impact from provincial impairment in Q4, there was notable improvement on our gross profit margin during the quarter. So what has the measurement view of future gross profit margin trend and the room for improvement? Thank you.

Thank you, Ewan. 2025年, the company's全年毛利率 is 13.4%, the average of 0.1%. 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,也对整体毛利率形式了积极的贡献。 For the full year 2025, our gross margin was 13.4% up to 0.

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.

Thank you. We will take our last question today from Maggie Yeh from CRSA. Maggie, please go ahead. virtual item sales.

So beyond the top line growth this quarter, good management share any material progress regarding these segments margin profile, channel mix, and any exclusive partnership initiatives. And furthermore, how should we think about the sustainability of this growth and the potential for future margin expansion over the coming quarters? Thank you.

Okay. 感谢Maggie的提问 最后一道题我来回答这个问题 这个季度我们可以看到整个道具的业务表现还是非常的健康的 总体实现了规模和利润质量的双重的提升 那我们从数据来看 2025年第四个季度我们道具销售的收入继续保持同比200%以上的高速的增长 同时随着我们道具业务规模化的效应的释放 我们也进一步优化我们整个成本的结构 带来了我们整个盈利的质量的显著改善 业务的亮点方面主要体现了三个方面 第一个是我们独家权益的突破 我们也首次拿下了王者荣耀的王昭君 FMVP的皮肤 并且能够享受这种独家超前预售的权益 那上限首个小时 我们也就得到了一个 近千万的流水 并且能显著带动 新增道具 付费用户的增长 也充分验证了我们的 整个的商业化的转化能力 其次 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 交易的占比也将 进一步的提升 我们也会将更多的交易

沉淀到我们自己自有的这个场景中来 那第三个呢是我们重点品类的这个合作拓展 那目前我们也在逐步去覆盖腾讯 网易 这些头部厂商的这个重点项目 那我们整个的这个产品矩阵也在持续的这个丰富 好 谢谢 Thank you for the question So overall our in-game item business Deloves a very solid quarter with a very strong growth and improved profitability in the fourth quarter of 2025 revenue from in-game item sales continue to grow by over 20 200 percent year-over-year as the business scaled we also further optimized our cost structure which then translated into meaningful improvement in earnings quality so there were two there were three key highlights during the during the quarter first we achieved a meaningful milestone in exclusive rights partnership for the For the first time, we secured exclusive pre-sale rights for Wang Zhaogun's FMVP scheme in all of Kings. The launch generated close to 10 million RMB in gross buildings 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 more 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 NetEase. We hope to further expand our portfolio of games and continue to grow our presence in Thank you once again for joining us today.

If you have further questions, please feel free to contact Huya Investor Relations to with the contact information provided on our website of PS&A Financial Communications. This concludes today's call, and we're looking forward to speaking to you again next quarter. Thank you.