6-K - HUYA - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2023

CommissionFile Number: 001-38482

HUYA INC.

Building A3, E-Park, 280 Hanxi Road

Panyu District, Guangzhou 511446

People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☑ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

EXHIBIT INDEX

Exhibit No.	Description
Exhibit 99.1	Press Release

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HUYA Inc.
By:	/s/ Ashley Xin Wu
	Name: Ashley Xin Wu
	Title: Vice President of Finance

Date: March 21, 2023

EX-99.1

Exhibit 99.1

HUYA Inc. Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results

GUANGZHOU, China, March 21, 2023 /PRNewswire/ — HUYA Inc. (“Huya” or the “Company”) (NYSE: HUYA), a leading game live streaming platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022.

Fourth Quarter 2022Highlights

•	Total net revenues for the fourth quarter of 2022 were RMB2,102.2 million (US$304.8 million),<br>compared with RMB2,808.7 million for the same period of 2021.
•	Net loss attributable to HUYA Inc. was RMB524.4 million (US$76.0 million) for the fourth quarter of<br>2022, compared with RMB312.7 million for the same period of 2021.
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•	Non-GAAP net loss attributable to HUYA Inc.^1^ was RMB440.0 million (US$63.8 million) for the fourth quarter of 2022, compared with RMB241.7 million for the same period of 2021.
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•	Average mobile MAUs^2^ of Huya Live for the<br>fourth quarter of 2022 was 85.5 million, compared with 85.4 million for the same period of 2021.
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•	Total number of paying users^3^ of Huya Live for<br>the fourth quarter of 2022 was 5.5 million, compared with 5.6 million for the same period of 2021.
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Fiscal Year 2022Highlights

•	Total net revenues in fiscal year 2022 were RMB9,220.5 million (US$1,336.8 million), compared with<br>RMB11,351.4 million in 2021.
•	Net loss attributable to HUYA Inc. in fiscal year 2022 was RMB486.7 million (US$70.6 million),<br>compared with a net income attributable to HUYA Inc. of RMB583.5 million in 2021.
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•	Non-GAAP net loss attributable to HUYA Inc. in fiscal year 2022<br>was RMB281.4 million (US$40.8 million), compared with a non-GAAP net income attributable to HUYA Inc. of RMB454.4 million in 2021.
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•	Average mobile MAUs of Huya Live in fiscal year 2022 was 84.3 million, compared with<br>80.9 million in 2021.
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•	Average quarterly paying users of Huya Live in fiscal year 2022 was 5.6 million, compared with<br>5.8 million in 2021.
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^1^	“Non-GAAP net loss attributable to HUYA Inc.” is defined as<br>net loss attributable to HUYA Inc. excluding (i) share-based compensation expenses, (ii) gain on fair value change of investments, net of income taxes, (iii) gain arising from disposal of an equity investment, net of income taxes,<br>(iv) impairment loss of investments and (v) loss on equity method investment, net of income taxes. For more information, please refer to the section titled “Use of Non-GAAP Financial<br>Measures” and the table captioned “HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.
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^2^	Refers to average monthly active users on mobile apps. Average mobile MAUs for any period is calculated by<br>dividing (i) the sum of active users on the mobile apps for each month during such relevant period, by (ii) the number of months during such relevant period.
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^3^	Refers to the sum of user accounts that purchased various products and services on our platform at least once<br>during such relevant period.
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“We ended a challenging 2022 with our full-year average mobile MAUs of Huya Live up by 4.2% to 84.3 million and annual total revenues of approximately RMB9.2 billion. In the fourth quarter, we continued to bring high-quality e-sports tournaments and entertainment programs to our users. We also enhanced the interactive experience between broadcasters and viewers through in-depth collaborations with game studios, helping us stabilize our user scale and achieve healthy user engagement levels,” said Mr. Rongjie Dong, Chief Executive Officer of Huya. “While we may face continued pressure from the volatile market environment in the near term, we are shoring up our long term prospects. We will continue to reinforce Huya’s core competencies and actively explore a diversified business ecosystem for new growth opportunities, while maintaining our leadership position in the game live streaming market.”

Ms. Ashley Xin Wu, Vice President of Finance of Huya, commented, “Against the backdrop of macro headwinds and the COVID-19 pandemic resurgence at the end of the year, our total revenues were RMB2.1 billion for the fourth quarter of 2022. Lower revenues and higher content costs associated with a large e-sports event in the quarter contributed to a gross loss for the period. At the same time, we continued to promote operational efficiencies, reducing our total operating expenses in the fourth quarter by 34.7% year-over-year. Looking ahead, we will further optimize our cost and expense structure and focus our resources on areas with better returns to strengthen our operational and financial performance.”

Fourth Quarter 2022 Financial Results

Total netrevenues for the fourth quarter of 2022 were RMB2,102.2 million (US$304.8 million), compared with RMB2,808.7 million for the same period of 2021.

Live streaming revenues were RMB1,975.2 million (US$286.4 million) for the fourth quarter of 2022, compared with RMB2,612.9 million for the same period of 2021, primarily due to lower average spending per paying user and a decreased number of paying users on Huya Live, as the recent macro and regulatory environment adversely affected the sentiment of the Company’s paying users.

Advertising and other revenues were RMB127.0 million (US$18.4 million) for the fourth quarter of 2022, compared with RMB195.8 million for the same period of 2021, primarily due to soft demand for advertising services resulting from the challenging macro environment, and lower content sub-licensing revenues.

Cost of revenues decreased by 15.0% to RMB2,386.4 million (US$346.0 million) for the fourth quarter of 2022 from RMB2,807.7 million for the same period of 2021, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs.

Revenue sharing fees and contentcosts decreased by 11.9% to RMB2,170.6 million (US$314.7 million) for the fourth quarter of 2022 from RMB2,463.1 million for the same period of 2021, primarily due to the decrease in revenue sharing fees associated with the decline in live streaming revenues. This was partially offset by the increase in spending on e-sports content, which was mainly related to the higher content cost booked for a large e-sports event that occurred in the fourth quarter of 2022.

Bandwidth costs decreased by 45.5% to RMB99.5 million (US$14.4 million) for the fourth quarter of 2022 from RMB182.7 million for the same period of 2021, primarily due to improved bandwidth cost management and continued technology enhancement efforts, as well as less overseas bandwidth usage as a result of the strategic adjustment in the Company’s overseas business to focus on key markets.

Gross loss was RMB284.2 million (US$41.2 million) for the fourth quarter of 2022, compared with a gross profit of RMB1.1 million for the same period of 2021, primarily due to lower revenues and increased content costs related to e-sports content. Gross margin was negative 13.5% for the fourth quarter of 2022, compared with approximately zero for the same period of 2021.

Research and development expenses decreased by 30.0% to RMB143.9 million (US$20.9 million) for the fourth quarter of 2022 from RMB205.7 million for the same period of 2021, primarily due to decreased personnel-related expenses and share-based compensation expenses.

Sales and marketing expenses decreased by 48.2% to RMB113.2 million (US$16.4 million) for the fourth quarter of 2022 from RMB218.5 million for the same period of 2021, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses.

General andadministrative expenses decreased by 12.6% to RMB79.1 million (US$11.5 million) for the fourth quarter of 2022 from RMB90.5 million for the same period of 2021, primarily due to decreased share-based compensation expenses.

Other income was RMB43.8 million (US$6.4 million) for the fourth quarter of 2022, compared with RMB56.3 million for the same period of 2021, primarily due to lower tax refunds and government subsidies.

Operating loss was RMB576.7 million (US$83.6 million) for the fourth quarter of 2022, compared with RMB457.3 million for the same period of 2021.

Interest and short-term investments income were RMB101.7 million (US$14.7 million) for the fourth quarter of 2022, compared with RMB61.6 million for the same period of 2021, primarily due to increased interest rates.

Net loss attributable to HUYA Inc. was RMB524.4 million (US$76.0 million) for the fourth quarter of 2022, compared with RMB312.7 million for the same period of 2021.

Non-GAAP net loss attributable to HUYA Inc., which excludes share-based compensation expenses, impairment loss of investments and loss on equity method investment, net of income taxes, was RMB440.0 million (US$63.8 million) for the fourth quarter of 2022, compared with RMB241.7 million for the same period of 2021, which excludes share-based compensation expenses.

Basic and diluted net loss per American depositary share (“ADS”) were each RMB2.16 (US$0.31) for the fourth quarter of 2022. Basic and diluted net loss per ADS were each RMB1.31 for the fourth quarter of 2021. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net loss per ADS were each RMB1.81 (US$0.26) for the fourth quarter of 2022. Non-GAAP basic and diluted net loss per ADS were each RMB1.01 for the fourth quarter of 2021.

As of December 31, 2022, the Company had cash and cash equivalents, short-term deposits, short-terminvestments and long-term deposits of RMB10,749.2 million (US$1,558.5 million), compared with RMB11,008.2 million as of September 30, 2022.

Fiscal Year 2022 Financial Results

Total netrevenues were RMB9,220.5 million (US$1,336.8 million) in fiscal year 2022, compared with RMB11,351.4 million in the prior year.

Livestreaming revenues were RMB8,195.9 million (US$1,188.3 million) in fiscal year 2022, compared with RMB10,186.2 million in the prior year, primarily due to lower average spending per paying user and a decreased number of paying users on Huya Live, as the macro and regulatory environment during the year adversely affected the sentiment of the Company’s paying users.

Advertisingand other revenues were RMB1,024.6 million (US$148.5 million) in fiscal year 2022, compared with RMB1,165.2 million in the prior year, due to soft demand for advertising services resulting from the challenging macro environment.

Cost of revenues decreased by 11.7% to RMB8,609.6 million (US$1,248.3 million) in fiscal year 2022 from RMB9,751.2 million in the prior year, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs.

Revenue sharing fees and content costs decreased by 10.0% to RMB7,535.7 million (US$1,092.6 million) in fiscal year 2022 from RMB8,374.6 million in the prior year, primarily due to the decrease in revenue sharing fees associated with declined live streaming revenues, and lower costs related to content creators, partially offset by the increase in spending on e-sports content.

Bandwidth costs decreased by 24.7% to RMB537.2 million (US$77.9 million) in fiscal year 2022 from RMB713.7 million in the prior year, primarily due to improved bandwidth cost management and continued technology enhancement efforts, as well as less overseas bandwidth usage as a result of the strategic adjustment in the Company’s overseas business to focus on key markets.

Gross profit was RMB610.9 million (US$88.6 million) in fiscal year 2022, compared with RMB1,600.3 million in the prior year, primarily due to lower revenues and increased content costs related to e-sports content. Gross margin was 6.6% in fiscal year 2022, compared with 14.1% in fiscal year 2021.

Research and development expenses decreased by 16.9% to RMB680.4 million (US$98.6 million) in fiscal year 2022 from RMB818.9 million in the prior year, primarily due to decreased share-based compensation expenses and personnel-related expenses.

Sales and marketing expenses decreased by 36.4% to RMB482.9 million (US$70.0 million) in fiscal year 2022 from RMB759.5 million in the prior year, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses.

General and administrative expenses were RMB320.4 million (US$46.5 million) in fiscal year 2022, compared with RMB326.8 million in the prior year, primarily attributable to decreased share-based compensation expenses.

Other income was RMB166.3 million (US$24.1 million) in fiscal year 2022, compared with RMB274.7 million in the prior year, primarily attributable to lower tax refunds and government subsidies in fiscal year 2022 and realized damages received in the first quarter of 2021 from a favorable outcome in a broadcaster-related lawsuit.

Operating loss was RMB706.5 million (US$102.4 million) in fiscal year 2022, compared with RMB30.2 million in the prior year.

Interest and short-term investments income were RMB298.2 million (US$43.2 million) in fiscal year 2022, compared with RMB247.0 million in the prior year, primarily due to increased interest rates.

Share of loss inequity method investments, net of income taxes was RMB0.5 million (US$0.1 million) in fiscal year 2022, compared with share of income in equity method investments, net of income taxes of RMB379.2 million in the prior year, primarily due to the investment gain related to a disposal of equity investment in the third quarter of 2021, as disclosed in a Form 6-K filed on July 6, 2021.

Net loss attributable to HUYA Inc. was RMB486.7 million (US$70.6 million) in fiscal year 2022, compared with a net income attributable to HUYA Inc. of RMB583.5 million in the prior year.

Non-GAAP net loss attributable to HUYA Inc., which excludes share-based compensation expenses, gain on fair value change of investments, net of income taxes, impairment loss of investments, and loss on equity method investment, net of income taxes was RMB281.4 million (US$40.8 million) in fiscal year 2022, compared with a non-GAAP net income attributable to HUYA Inc. of RMB454.4 million in the prior year, which excludes share-based compensation expenses, gain on fair value change of investments, net of income taxes, and gain arising from disposal of an equity investment, net of income taxes.

Basic and diluted net loss per ADSwere each RMB2.02 (US$0.29) in fiscal year 2022. Basic and diluted net income per ADS were RMB2.45 and RMB2.41, respectively, in fiscal year 2021.

Non-GAAP basic and diluted net loss per ADS were each RMB1.17 (US$0.17) in fiscal year 2022. Non-GAAP basic and diluted net income per ADS were RMB1.91 and RMB1.88, respectively, in fiscal year 2021.

Conference Call

The Company’s management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on March 21, 2023 (8:00 p.m. Beijing/Hong Kong time on March 21, 2023).

For participants who wish to join the call, please complete online registration using the link provided below 20 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results” at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.8972 to US$1.00, the noon buying rate in effect on December 30, 2022, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Huya’s strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Huya’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huya’s goals and strategies; Huya’s future business development, results of operations and financial condition; the expected growth of the game live streaming market; the expectation regarding the rate at which to gain active users, especially paying users; Huya’s ability to monetize the user base; Huya’s efforts in complying with applicable data privacy and security regulations; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to Huya’s business operations and the economy in China and elsewhere generally; any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

HUYA Inc.

Investor Relations

Tel: +86-20-2290-7829

E-mail: ir@huya.com

The Piacente Group, Inc.

Jenny Cai

Tel: +86-10-6508-0677

E-mail: huya@tpg-ir.com

In the United States:

The Piacente Group, Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail: huya@tpg-ir.com

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

	As of December 31,		As of December 31,
	2021		2022		2022
	RMB		RMB		US
Assets
Current assets
Cash and cash equivalents		1,790,784		655,241
Restricted cash		55,670		4,050
Short-term deposits		8,351,945		9,018,298
Short-term investments		816,331		3,117
Accounts receivable, net		88,034		75,898
Amounts due from related parties, net		148,560		59,702
Prepayments and other current assets, net		664,945		637,225
Total current assets		11,916,269		10,453,531
Non-current assets
Long-term deposits		—		1,072,548
Deferred tax assets		20,245		—
Investments		608,617		906,215
Property and equipment, net		79,611		200,893
Intangible assets, net		83,942		57,810
Right-of-use<br>assets, net		395,371		345,136
Prepayments and other non-current assets		150,887		110,874
Total non-current assets		1,338,673		2,693,476
Total assets		13,254,942		13,147,007
Liabilities and shareholders’ equity
Current liabilities
Accounts payable		12,579		22,517
Advances from customers and deferred revenue		459,509		445,620
Income taxes payable		5,944		28,924
Accrued liabilities and other current liabilities		1,845,452		1,592,455
Amounts due to related parties		216,128		81,814
Lease liabilities due within one year		36,473		29,801
Total current liabilities		2,576,085		2,201,131
Non-current liabilities
Lease liabilities		45,084		8,617
Deferred tax liabilities		4,597		20,533
Deferred revenue		118,975		73,354
Total non-current liabilities		168,656		102,504
Total liabilities		2,744,741		2,303,635