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 May 2023

Commission File 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 ☐

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: May 16, 2023

EX-99.1

Exhibit 99.1

HUYA Inc. Reports First Quarter 2023 Unaudited Financial Results

GUANGZHOU, China, May 16, 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 first quarter ended March 31, 2023.

First Quarter 2023 Highlights

•	Total net revenues for the first quarter of 2023 were RMB1,949.2 million (US$283.8 million), compared<br>with RMB2,464.6 million for the same period of 2022.
•	Net income attributable to HUYA Inc. was RMB44.8 million (US$6.5 million) for the first quarter of<br>2023, compared with a net loss attributable to HUYA Inc. of RMB3.3 million for the same period of 2022.
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•	Non-GAAP net income attributable to HUYA Inc.^1^ was RMB85.5 million (US$12.5 million) for the first quarter of 2023, compared with RMB46.6 million for the same period of 2022.
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•	Average mobile MAUs^2^ of Huya Live for the<br>first quarter of 2023 was 82.1 million, compared with 81.9 million for the same period of 2022.
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•	Total number of paying users^3^ of Huya Live for<br>the first quarter of 2023 was 5.2 million, compared with 5.9 million for the same period of 2022.
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“Against the backdrop of the usual low season for live streaming activities and an increase in users’ offline recreational pursuits, Huya Live’s mobile MAU reached 82.1 million in the first quarter of 2023, representing a slight year-over-year increase. Our appealing e-sports and entertainment program offerings along with our continued efforts to enhance our products with interactive features helped us sustain user engagement. We have been closely monitoring changes in the dynamic market environment and striving to quickly and flexibly refine our content and operational strategies to better meet users’ needs,” said Mr. Rongjie Dong, Chief Executive Officer of Huya. “As more game titles have been approved in China in recent months, we plan to diversify our operational activities and deepen cooperation with game companies to seize the opportunities brought by new game launches, further solidifying our position in the game live streaming market and increasing our presence in the game value chain.”

Ms. Ashley Xin Wu, Vice President of Finance of Huya, commented, “Our total net revenues for the first quarter of 2023 were approximately RMB1.9 billion amid the soft macro environment and seasonal headwinds. Nevertheless, alongside our stepped-up efforts to optimize costs, particularly content costs, our first quarter gross margin rebounded sequentially, nearly reaching its level in the same quarter last year. Meanwhile, we continued to improve operational efficiency, with total operating expenses in the first quarter of 2023 decreasing by 26.2% year-over-year. As a result, we were pleased to achieve a net income of RMB44.8 million for the quarter. Going forward, we aim to maintain our progress and pursue further gains in cost optimization and operational efficiency as we strengthen our financial foundation for the Company’s long-term development.”

^1^	“Non-GAAP net income attributable to HUYA Inc.” is defined as<br>net income (loss) attributable to HUYA Inc. excluding (i) share-based compensation expenses, (ii) gain on fair value change of investments, net of income taxes, (iii) impairment loss of investments and (iv) loss on equity method<br>investment, net of income taxes. For more information, please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “HUYA Inc. Unaudited Reconciliations of<br>GAAP and Non-GAAP Results” at the end of this press release.
^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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First Quarter 2023 Financial Results

Total net revenues for the first quarter of 2023 were RMB1,949.2 million (US$283.8 million), compared with RMB2,464.6 million for the same period of 2022.

Live streaming revenues were RMB1,859.9 million (US$270.8 million) for the first quarter of 2023, compared with RMB2,151.7 million for the same period of 2022, primarily due to a decreased number of paying users on Huya Live, as the macro and regulatory environment continued to adversely affect the sentiment of the Company’s paying users.

Advertising and other revenues were RMB89.3 million (US$13.0 million) for the first quarter of 2023, compared with RMB312.8 million for the same period of 2022, primarily due to a significant decrease in content sub-licensing revenues, as well as soft demand for advertising services resulting from the challenging macro environment.

Cost of revenues decreased by 20.6% to RMB1,692.8 million (US$246.5 million) for the first quarter of 2023 from RMB2,131.0 million for the same period of 2022, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs.

Revenue sharing fees and contentcosts decreased by 17.6% to RMB1,490.2 million (US$217.0 million) for the first quarter of 2023 from RMB1,807.5 million for the same period of 2022, primarily due to the decrease in revenue sharing fees associated with the decline in live streaming revenues, and lower costs related to e-sports content as well as content creators.

Bandwidthcosts decreased by 44.4% to RMB93.6 million (US$13.6 million) for the first quarter of 2023 from RMB168.3 million for the same period of 2022, 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 RMB256.5 million (US$37.3 million) for the first quarter of 2023, compared with RMB333.6 million for the same period of 2022, primarily due to lower revenues. Gross margin was 13.2% for the first quarter of 2023, compared with 13.5% for the same period of 2022.

Research and development expenses decreased by 22.3% to RMB152.4 million (US$22.2 million) for the first quarter of 2023 from RMB196.3 million for the same period of 2022, primarily due to decreased personnel-related expenses and share-based compensation expenses.

Salesand marketing expenses decreased by 37.1% to RMB91.2 million (US$13.3 million) for the first quarter of 2023 from RMB145.1 million for the same period of 2022, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses.

General and administrative expenses decreased by 16.2% to RMB67.7 million (US$9.9 million) for the first quarter of 2023 from RMB80.8 million for the same period of 2022, primarily due to decreased personnel-related expenses and share-based compensation expenses.

Other income was RMB4.2 million (US$0.6 million) for the first quarter of 2023, compared with RMB28.3 million for the same period of 2022, primarily due to lower tax refunds and government subsidies.

Operating loss was RMB50.7 million (US$7.4 million) for the first quarter of 2023, compared with RMB60.2 million for the same period of 2022.

Interest and short-term investments income were RMB96.4 million (US$14.0 million) for the first quarter of 2023, compared with RMB59.2 million for the same period of 2022, primarily due to increased interest rates.

Net income attributable to HUYA Inc. was RMB44.8 million (US$6.5 million) for the first quarter of 2023, compared with a net loss attributable to HUYA Inc. of RMB3.3 million for the same period of 2022.

Non-GAAP net income attributable to HUYAInc., which excludes share-based compensation expenses, was RMB85.5 million (US$12.5 million) for the first quarter of 2023, compared with RMB46.6 million for the same period of 2022, which excludes share-based compensation expenses and gain on fair value change of investments, net of income taxes.

**Basic and diluted net income per American depositary share (“ADS”)**were each RMB0.18 (US$0.03) for the first quarter of 2023. Basic and diluted net loss per ADS were each RMB0.01 for the first quarter of 2022. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net income per ADS were each RMB0.35 (US$0.05) for the first quarter of 2023. Non-GAAP basic and diluted net income per ADS were each RMB0.19 for the first quarter of 2022.

As of March 31, 2023, the Company had cash and cash equivalents, short-term deposits, short-term investments and long-term deposits of RMB10,347.6 million (US$1,506.7 million), compared with RMB10,749.2 million as of December 31, 2022.

Conference Call

The Company’s management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on May 16, 2023 (8:00 p.m. Beijing/Hong Kong time on May 16, 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 RMB6.8676 to US$1.00, the noon buying rate in effect on March 31, 2023, 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 March 31,
	2022		2023		2023
	RMB		RMB		US
Assets
Current assets
Cash and cash equivalents		655,241		1,941,195
Restricted cash		4,050		16,246
Short-term deposits		9,018,298		7,829,206
Short-term investments		3,117		—
Accounts receivable, net		75,898		71,395
Amounts due from related parties, net		59,702		76,913
Prepayments and other current assets, net		637,225		570,130
Total current assets		10,453,531		10,505,085
Non-current assets
Long-term deposits		1,072,548		577,223
Investments		906,215		986,794
Property and equipment, net		200,893		221,694
Intangible assets, net		57,810		52,297
Right-of-use<br>assets, net		345,136		335,349
Prepayments and other non-current assets		110,874		94,407
Total non-current assets		2,693,476		2,267,764
Total assets		13,147,007		12,772,849
Liabilities and shareholders’ equity
Current liabilities
Accounts payable		22,517		29,264
Advances from customers and deferred revenue		445,620		417,409
Income taxes payable		28,924		30,110
Accrued liabilities and other current liabilities		1,592,455		1,278,894
Amounts due to related parties		81,814		60,754
Lease liabilities due within one year		29,801		23,006
Total current liabilities		2,201,131		1,839,437
Non-current liabilities
Lease liabilities		8,617		6,849
Deferred tax liabilities		20,533		20,533
Deferred revenue		73,354		69,394
Total non-current liabilities		102,504		96,776
Total liabilities		2,303,635		1,936,213