HUYA

Game Publishing

• Huya has evolved from game distribution to in-game item sales, advertising, and now full game publishing, building a differentiated, content-driven publishing model that leverages its streamer network, content creation strengths, and user communities to acquire users efficiently and reduce reliance on paid traffic.
• GooseGoose.mobile, Huya's first full publishing success, launched an AI-powered voice moderation system and tiered matchmaking in July 2026, followed by a Journey to the West IP collaboration and new gameplay mode, which pushed the game back to the number 1 position on the iOS free game chart in Chinese mainland at the end of July. A WeChat minigame version is currently in development to drive further user growth.
• Two upcoming exclusively published titles are in the pipeline: The Legend of Swarm Man Reunion, a classic martial arts MMORPG that completed first-round testing with positive feedback, and Xiao Xiao Qi Yu, a 3D match-based casual mobile game that expands Huya's presence in the match category. Huya's first self-developed title Zhe Dao You Huan Shou received publication approval, with testing preparations underway.

Live Streaming and Tournaments

• Outdoor entertainment content performed well in the quarter, and the overall streamer ecosystem remained stable. Huya is actively reviewing live streaming partnership economics to improve content investment efficiency and build a more sustainable ecosystem, while exploring synergies between game and entertainment streamers to boost top streamer revenue contribution.
• Huya hosted over 100 licensed tournaments and ~20 self-produced tournaments in the quarter, including the CF Grand Master Cup international invitational with a film crossover, Dota 2 Immortal Cup Season 2 which generated over 2.5 billion online impressions, and two new July events (Dota 4 Streamer Championship, Peacekeeper Elite Mengnan Superstar Cup) that strengthened Huya's position among core gamers.

Advertising and In-Game Item Sales

• Hearthstone joined as a key new advertising client, with a partnered global invitational for Hearthstone Battlegrounds generating over 200 million online impressions and earning strong client recognition.
• In-game item sales revenue achieved triple-digit year-over-year growth, with Peacekeeper Elite, PUBG Mobile, Genshin Impact, and Arena Breakout as top contributors. PEL tournament coverage for Peacekeeper Elite drove strong audience engagement and supported continued sales growth.

AI Innovation

• Huya continued rolling out AI-powered game tools for popular titles including Delta Force, League of Legends, and Teamfight Tactics, with tools driving higher user activity, longer viewing times, and greater monetization potential for the platform.
• Huya launched VAM version 1, its proprietary real-time multi-model digital human model, which can rapidly generate AI-powered virtual hosts with natural, realistic real-time interaction. VAM is expected to improve live streaming content economics by enabling scalable content production with lower marginal creation costs.

• Management expects gross margin and operating margin to continue improving as higher-margin game-related services and publishing grow as a share of total revenue, alongside ongoing improvements in spending efficiency.
• Huya will continue to expand its AI initiatives: VAM will be iterated to improve performance and reduce costs, a new multimodal AI companion product is planned for pre-launch promotion later in 2026, and AI-assisted development will continue testing for casual lightweight game content.
• Huya will follow a disciplined, quality-first phase strategy for game publishing, with a pipeline of multiple titles across genres to build sustainable long-term growth for game-related services, rather than relying on a single hit title.
• The 2026 share repurchase program authorization has been expanded from US$15 million to US$100 million, reflecting management's confidence in the company's business outlook and commitment to shareholder returns.

Total net revenues for Q2 2026 were RMB 1.74 billion, representing an 11% year-over-year increase. 1. Live streaming: Live streaming revenues came in at RMB 1.1 billion, down from RMB 1.15 billion in the year-ago quarter, accounting for approximately 63% of total net revenues. 2. Game-related services, advertising, and other: This segment generated revenues of RMB 638 million, up 54% year-over-year, contributing approximately 37% of total net revenues. Growth was driven by higher in-game item sales, increased advertising revenue, and commercialization contributions from GooseGoose.mobile.

• Forward-looking statements discussed in the call carry inherent risks, and actual company results may differ materially from expectations. Additional information on risks and uncertainties is included in Huya's latest Form 20-F annual report and other SEC filings.
• The broader live streaming industry faces ongoing headwinds from weak consumer user spending and platform competition, which has pressured year-over-year live streaming revenue for Huya in the quarter.
• Huya does not assume any obligation to update forward-looking statements unless required by applicable law.

Q: Can you share operation updates, monetization performance, and summer promotion progress for Goose Goose Duck Mobile? / A: In Q2, the game maintained a resilient user base with limited long-term churn, especially among core 18-25 year-old users. Huya launched an AI-powered voice moderation system to improve community health, and has rolled out monthly IP collaborations starting with Empresses in the Palace in April, that have driven sustained engagement and monetization, culminating in the game returning to the top of the iOS free chart in late July. A WeChat minigame version is in development to tap new audiences, and management remains confident in its long-term engagement and monetization potential.

Q: Can you elaborate on Huya's overall AI initiatives and how they will drive user growth and monetization? / A: Huya's AI strategy focuses on four areas: AI-powered live streaming, game tools, AI companionship, and AI-assisted game development. The newly launched VAM 1.0 real-time digital human model enables efficient, low-cost scalable AI content production to overcome the supply constraints of human-led live streaming, and will continue to be iterated for better performance and lower costs. AI game tools have already accumulated over 1 million users in six months, with tool users showing more than doubled active days and higher engagement and monetization value on Huya's platform. A new multimodal AI companion product is planned for pre-launch promotion later this year.

Q: Following Goose Goose Duck's success, what is Huya's positioning for game publishing and what is the product pipeline update? / A: Game publishing is a core part of Huya's transformation from a live streaming platform to an integrated game ecosystem service provider. Huya's competitive advantage comes from its content ecosystem, which supports games across their entire lifecycle rather than just traffic acquisition. Huya will continue to focus on high-quality games and IP with strong content appeal and long-term operational potential, and is building a diversified multi-genre portfolio rather than relying on one hit title. Three key titles are actively in progress: two exclusively published games and one self-developed game, with additional titles in preparation.

Q: What is the latest progress on Huya's share buyback program and future shareholder return plans? / A: In Q2 2026, Huya repurchased approximately 3.2 million ADS, representing around 1.4% of total outstanding shares, with a portion already cancelled and the rest to be cancelled per plan. The board has approved expanding the 2026 share repurchase program authorization from US$15 million to US$100 million, reflecting management's confidence in Huya's business outlook and commitment to delivering long-term shareholder value.