HUYA Inc. Reports Third Quarter 2023 Unaudited Financial Results

· Total net revenues for the third quarter of 2023 were RMB1,647.8 million (US$225.8 million), compared with RMB2,378.5 million for the same period of 2022.

· Net income attributable to HUYA Inc.was RMB12.1 million (US$1.7million) for the third quarter of 2023, compared with RMB60.4 million for the same period of 2022.

· Non-GAAP net income attributable to HUYA Inc.[1]was RMB103.3 million (US$14.2million) for the third quarter of 2023, compared with RMB106.1million for the same period of 2022.

· Average mobile MAUs[2] of Huya Live for the third quarter of 2023 remained flat at 86.0 million, compared with 86.0 million for the same period of 2022.

Mr. Junhong Huang, Acting Co-Chief Executive Officer and Senior Vice President of Huya, commented, "Our Huya Live's average mobile MAUs reached 86.0 million in the third quarter of 2023, growing by 3.7% quarter-over-quarter thanks to our diversified e-sports tournaments and entertainment programming during the summer season. As we continue to enrich our content ecosystem and strengthen our user base, we are also advancing our strategic transformation targeting a shift in our commercialization focus with more game-related services. During the quarter, we focused on establishing terms of cooperation with game studios and building the business infrastructure required to support these new services. We are confident that through strong strategic execution, we will expand Huya's presence in the game value chain and drive more balanced and sustainable business growth in the long term."

"Against the backdrop of a soft industry environment and our proactive business adjustments, our total net revenues for the third quarter of 2023 were approximately RMB1.6 billion," said Ms. Ashley Xin Wu, Huya's Acting Co-Chief Executive Officer and Vice President of Finance. "In the third quarter, we recorded a gross margin of 13.9%, and decreased total operating expenses by 20.7% year-over-year, reflecting our continuous operational optimization efforts. Furthermore, in mid-August 2023, we announced the authorization for a share repurchase program of up to US$100 million over a 12-month period and have repurchased US$9 million of our shares as of the end of the third quarter. Looking ahead, we remain committed to further improving our financial fundamentals while enhancing shareholder value."

[1] "Non-GAAP net income attributable to HUYA Inc." is defined as net income attributable to HUYA Inc. excluding share-based compensation expenses, gain on fair value change of investments, net of income taxes, and impairment loss of investments, to the extent applicable. For more information, please refer to the section titled "Use of Non-GAAP Financial Measures" and the table captioned "HUYA Inc. Unaudited Reconciliations of 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 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.