HUYA - Earnings Call - Q2 2025

Transcript

Speaker 4

Good day and good evening, and thank you for standing by. Welcome to HUYA Inc.'s second quarter 2025 earnings webinar. I'm Hanyu 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 Junhong Huang, our Acting Co-CEO and Senior Vice President, and Mr. Raymond Peng Lei, our Acting Co-CEO and CFO, and Margaret Shi, Head of Capital Markets. 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 harbor provisions of the U.S. 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 20-F 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 by applicable law. Please also note that HUYA Inc.'s earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. HUYA Inc.'s press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

With that, I'm pleased to turn the call over to our Acting Co-CEO and Senior Vice President, Mr. Vincent Junhong Huang. Please go ahead.

Speaker 3

Okay. Hello everyone, thank you for joining our earnings conference today. It has been exactly two years since I first spoke with you on our August 2023 earnings call. Over this time, HUYA has undergone a lot of transformation, uncovering new opportunities, executing on clear strategy, and deepening our strategic alignment with Tencent and the broader gaming industry. Today, I'm pleased to share the progress we have made and the opportunities ahead. By leveraging our cross-platform strategy, we have achieved an average of 162 million monthly active users across HUYA's platforms and extended our reach even further through the distribution of our content and services on third-party content platforms such as WeChat Channels, Douyin, and Quizo. Over the past year, we have strengthened collaborations with these platforms, enabling cross-platform streaming and co-creating professional content.

This not only expands the reach of our high-quality content, but also builds the foundation for new monetization opportunities in game distribution, in-game item sales, and potentially game publishing. One of the industry trends we are seeing is the rising importance of content-driven marketing in publishing and long-term operation of game titles. This trend plays directly to HUYA's core strengths. Our top-tier game live streaming capabilities, a robust and influential eSports ecosystem, and deep expertise in producing high-impact short-form videos optimized for each social platform. By combining our rich professional production capabilities and community influence, we are able to help game publishers engage players more deeply, extend the life cycle of their titles, and drive player spending. As a result, our game-related services, advertising, and other revenues have grown significantly from RMB 122 million in Q2 2023 to RMB 414 million this quarter.

This segment now contributes over a quarter of our total net revenues and, from a gross billing perspective, accounts for over 40% of HUYA's total transaction value. We see this segment as a key growth engine going forward, with substantial room for further expansion as we deepen our partnership with game developers and broaden our service offering. This quarter, we further increased our portfolio of jointly distributed games in the domestic market to over 300 titles. Tencent's games such as Honor of Kings, Peacekeeper Elite, and League of Legends Mobile all performed strongly. Games from other partners such as Azurrot 2 and Xian Gong Zhan Ji also stood out this quarter. Progressing from our existing joint distribution of games, sales of in-game accessories and domestic items are naturally the next step for us.

In the second quarter, gross billing from this category increased by 90% year over year, reflecting strong demand from our high-engaged user base. Given our ability to integrate sales seamlessly into live streams, eSports events, and other content, often featuring influential streamers, we believe this business line has significant potential to scale further and become an increasingly important part of HUYA's revenue mix in the years ahead. Our community of game streamers remains one of HUYA's most strategic and valuable assets. We nurture their growth not only within HUYA's ecosystem but also across all leading content platforms, enabling them to broaden their reach and deepen audience engagement. Among the top 300 game live streamers nationwide, HUYA continues to command the largest representation in the industry, a testament to our unmatched ability to attract, develop, and retain top-tier talent.

With a user base composed of highly engaged hardcore gamers, HUYA offers the perfect environment for emerging talent to gain visibility and build a loyal following quickly. Combined with the comprehensive professional support we provide, we continue to successfully introduce some of the most sought-after personalities for new releases. For example, one of the hottest games that is trending this summer is Tencent's Delta Force, and the biggest live streamer of that game right now in terms of live channel average concurrent users and total short video views is on HUYA. We helped him build his fame on HUYA from the ground up. As the go-to destination for eSports live streaming in China, we continue to invest in eSports content, driving deeper user engagement and strengthening our market leadership.

In the second quarter, we live streamed over 100 licensed eSports tournaments, covering premier domestic leagues such as the League of Legends Pro League, King's Pro League, and Crossfire Pro League, as well as major international events, including the LOL Mid-Season Invitational and the CS2 Austin Major. Currently, we are also bringing global competition to our audience through coverage of the eSports World Cup in Saudi Arabia. Alongside licensed events, we produce over 40 in-house produced tournaments, including the LOL Legends Cup Season 3, Dota 2 Immortal Cup, and Honor of Kings Southern Cup Gold Tournament, as well as entertainment show lives clear the billion table goals. The Immortal Cup finals showed up in just seven minutes, while our HUYA Hyper eSports Carnival, blending eSports, music, and culture tourism, deepened fan loyalty and expanded our audience reach.

In July, in partnership with Tencent, we launched the inaugural Delta Force Diamond Champions Summer Season, featuring 24 leading domestic teams. The event showcased HUYA's production and technology leadership, from 4K ultra-high definition and 120 FPS streaming to multi-screen viewing and in-team voice chat, delivering a truly premium and interactive experience for fans. Leveraging our content integration strengths, we have begun entering the game publishing arena. In Q2, we piloted a content-led launch strategy for Golden Age of Victory Nike, using live streamer showcases, eSports promotion, and creator videos. The campaign delivered strong results, and we are actively pursuing additional publishing partnerships. Our overseas initiatives are also gaining momentum. We have now reached tens of millions of monthly active users internationally through our mobile application service platform, live streaming, and others.

Through these products, we are able to build up our gamer communities and local marketing capabilities and accumulate a suitable user base of hardcore gamers, particularly in genres like FPS and MOBA. These efforts will position us to capture opportunities in the growing overseas game-related services market. Before I pass the call on to Raymond, I would like to update you on our AI strategy. AI is becoming embedded in every aspect of our operations, from AI+ live streaming to AI+ IP and AI+ services. Using our proprietary gaming datasets, deep user insights, and years of content, we have built intelligent gaming analytics models and large language models for specific service needs. Some initiatives enhance user experience, such as our AI agent Hu Xiao'ai, which delivers real-time engaging commentary during eSports streams, boosting viewer interaction during events like the LOL Legends Cup Season 3.

We are also developing AI-powered virtual live streamers, using high-fidelity avatars and expression technologies to add new dimensions to our content. Others create new consumption opportunities. For example, our AI-sparring partners for eSports players provide real-time tactical alerts, respond to players' emotions, and offer personalized encouragement. This technology also powers the industry's first AI game companion robot, the Huya AI SuperBot, launched with Invictus Gaming's IG team at China Joy, which generated significant market buzz. In short, our dedicated efforts over the past two years have demonstrated to the market that we are more than just a live streaming platform, but a game-related entertainment and service provider capable of adding value to the entire gaming ecosystem. We will continue to deepen our engagement in the gaming industry, strengthen collaborations with industry partners, expand our business boundaries, and innovate our service offerings.

We will also focus on overseas expansion and AI initiatives, paving the way for HUYA's long-term sustainable growth. With that, I will now turn the call over to our Acting Co-CEO and CFO, Raymond Peng Lei. He will share more details on our results. Raymond, please go ahead.

Speaker 1

Thank you, Yusef, and hello everyone. I'll start with an overview of our financial performance. Our total net revenues for the second quarter reached approximately RMB 1.57 billion, increasing both year over year and quarter over quarter for two consecutive quarters. Of these, live streaming revenues stabilized with a slight sequential increase to RMB 1.15 billion, and game-related services, advertising, and other revenues grew to RMB 414 million, accounting for 26.4% of total net revenues. The number of domestic paying users in the second quarter remained flat compared with the first quarter, standing at 4.4 million, excluding those who made in-game purchases through our game distribution business but didn't pay via our platform or related services, as well as overseas paying users. Thanks to optimized content costs, particularly those related to eSports tournaments, we improved our gross margins sequentially to 13.5% for the quarter.

This discipline also contributed to reaching break-even non-GAAP operating profit, a significant milestone in our path to improve profitability. We also achieved the non-GAAP net income of RMB 48 million, marking our sixth consecutive profitable quarter. Let's move on to more details of our Q2 financial results. Our total net revenues were RMB 1.57 billion for Q2, compared with RMB 1.54 billion for the same period last year. Live streaming revenues were RMB 1.15 billion for Q2, compared with RMB 1.23 billion for the same period last year, primarily due to the continued impact of the macroeconomic and the industry environments. Game-related services, advertising, and other revenues were RMB 414 million for Q2, compared with RMB 309 million for the same period last year.

The increase was primarily due to higher revenue from game-related services and advertising, which remain mainly attributable to our deepened cooperation with Tencent and other game companies. Cost of revenues increased by 2.1% to RMB 1.35 billion for Q2, primarily due to increased revenue sharing fees and content costs, partially offset by decreased bandwidth and server capacity fees. Revenue sharing fees and content costs, a key component of cost of revenue, increased by 2.6% to RMB 1.2 billion for Q2, primarily due to increased broadcaster-related costs, partially offset by lower costs related to licensed eSports content. Gross profit was RMB 212 million for Q2, compared with RMB 215 million for the same period last year. Gross margin was 13.5% for Q2, compared with 13.9% for the same period of last year, primarily attributable to increased revenue sharing fees and content costs as a percentage of total net revenues.

Excluding share-based compensation expenses, non-GAAP gross profit was RMB 216 million, and non-GAAP gross margin was 13.8% for Q2. Research and development expenses decreased by 5% year over year to RMB 122 million for Q2, primarily due to decreased personnel-related expenses and share-based compensation expenses. Sales and marketing expenses decreased by 6% year over year to RMB 58 million for Q2, primarily due to decreased channel promotion fees. General and administrative expenses remained flat year over year at RMB 64 million for Q2. Other income was RMB 8 million for Q2, compared with RMB 13 million for the same period last year, primarily due to a notable settlement income from disputes in the second quarter of 2024 and lower government subsidies. As a result, operating loss was RMB 24 million for Q2, compared with a loss of RMB 26 million for the same period last year.

Excluding share-based compensation expenses and the utilization of intangible assets from business acquisitions, non-GAAP operating income reached a break-even for Q2, compared with non-GAAP operating loss of RMB 3 million for the same period last year. Interest income was RMB 59 million for Q2, compared with RMB 103 million for the same period last year, primarily due to a lower time deposit balance, which was primarily attributable to the special cash dividends paid. Net loss attributable to HUYA Inc. was RMB 5 million for Q2, compared with net income attributable to HUYA Inc. of RMB 30 million for the same period last year. Excluding share-based compensation expenses, impairment loss of investments, and the utilization of intangible assets from business acquisitions, net of income taxes, non-GAAP net income attributable to HUYA Inc. was RMB 48 million for Q2, compared with RMB 97 million for the same period last year.

Non-GAAP net margin was 3% for Q2. Diluted net loss per ADS was approximately RMB 0.02 for Q2. Non-GAAP diluted net income per ADS was RMB 0.21 for Q2. As of June 30, 2025, the company had cash and cash equivalents, short-term deposits, and a long-term deposit of RMB 3.77 billion, compared with RMB 6.25 billion as of March 31, 2025. Finally, let me provide an update on our shareholder returns. Through our up-to-$100 million share repurchase program, we had repurchased 22.8 million HUYA shares, with a total aggregate consideration of $75.4 million as of the end of June 2025. Additionally, we distributed a total of about $340 million in special cash dividends during the second quarter. Going forward, we will continue to focus on performance, advancing our expansion initiatives, and deepening our industry alignment to create long-term value for our shareholders.

With that, I'd like to open the call to your questions.

Speaker 4

Thanks, Raymond. Hello everyone. If you are dialing in by phone, please press five to ask a question and then press six to unmute yourself. If you are accessing the call from the Tencent Meeting or 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 Ritchie Sun from HSBC. Hi, Ritchie. Your line is open. Please go ahead.

Speaker 2

Vincent, Raymond, Margaret, Hanyu, 晚上好, 谢谢你们接受我的提问。想问一下游戏相关业务的发展情况, 最近有什么新的进展, 怎么看这个下半年的情况? Thank you, management, for taking my questions. I'd like to ask about the game-related services business. Can you share more on the updates, how does it look like in terms of the development and how should we think about the second half? Thank you.

Speaker 3

基于我们的主播生态以及主播和用户之间的这个联系, 我们很自然地将游戏的这个服务业务拓展到主播带货和道具的这个售卖上面。在第二季度, 我们道具售卖的总的 GMV 同比增长了超过约 90%。我们也希望未来可以给用户建立一个心智, 在 HUYA 这个平台上面可以买到首发的更加独特的或者说更加优惠的道具。随着我们持续扩充我们道具的 SKU, 完善我们售卖相关的这个基础设施, 并且强化用户的这个心智, 我们也相信道具售卖也将是我们在游戏相关业务上面的一个新的增长的驱动。

Speaker 4

Hi, Ritchie, it's Margaret. Let me translate that for you. We continue to expand and deepen our collaborations with game companies, increasing our portfolio of joint distributed games in the domestic market to over 300 titles. Based on our game streamer ecosystem and the connections they have with our users, it is only natural that we take a step further and extend game services to the sales of in-game accessories and cosmetics through these levers. We're at the initial stage of this effort, and we have recorded a 90% year-over-year increase this quarter. As we further expand and diversify our in-game accessories SKUs, perfect its related transaction infrastructures, and enhance users' mindset about our value proposition, we believe sales from game accessories is likely to be one of the new growth drivers for us.

Speaker 3

OK, 那另一方面呢, 我们也通过现在也通过多平台的这个生态策略持续地拓展游戏用户的这个触达, 并巩固我们的内容整合能力。我们逐步拓展游戏发行业务, 第二季度我们结合《胜利女神: 新的希望》的上线, 尝试了全网内容发行, 通过头部主播试玩, 基于赛事内容的推广, 内容创作者视频等多种形式取得了显著成效。我们也在积极寻找游戏产业内更多的合作机会。

Speaker 4

On top of that, we have strengthened our collaborations with various platforms and products. This approach has allowed us to expand the influence of our high-quality content and services further to a wider audience. Building on our strong content integration capabilities, we are strategically entering the game publishing arena. In the second quarter, we piloted a comprehensive online content publishing strategy for the launch of Goddess of Victory: Nikke. With prominent live streamers showcasing gameplay, promoting through eSports events, and producing videos in collaboration with content creators, this campaign yielded impressive results. Encouraged by this early success, we are actively pursuing more cooperation opportunities within the game sector. Thank you. Our next question comes from Yiwen Zhang from China Renaissance. Yiwen, please go ahead.

Speaker 0

Delta Force 的一个职业赛事, 就想问一下目前看到这个赛事的效果如何, 它对我们的意义是什么? 谢谢。 Thank you for taking the question. We have noticed the company has hosted the first eSports event for Delta Force. Can you discuss what is the feedback so far and what is the meaning for the event to us? Thank you.

Speaker 3

Diamond Champions Summer Season, 这一职业的赛事。那此这个赛事呢, 是以职业联赛高规格的标准来打造的, 同时也吸引了24支国内职业俱乐部的参与, 持续提升HUYA在电竞生态中的影响力。从技术上面, 我们4K/120FPS的超分画质, 包括120帧的高帧率, 多屏同看、多路解说等功能的启用, 也将进一步提升用户的观赛体验和观赛的自由度。

Speaker 4

In July, in partnership with Tencent, we launched the inaugural Delta Force Diamond Champions Summer Season between 24 leading domestic teams. The event showcased HUYA's production and technology leadership, from 4K/120FPS streaming to multi-screen viewing and in-team voice chat, delivering a truly premium and interactive experience for fans.

Speaker 3

rare items while immersing themselves in the viewing experience.

Speaker 4

During the finals, viewers tuning into HUYA Live's DDC exclusive stream will also get a chance to win rare in-game items especially prepared for the event, including some of the highly sought-after bundles such as the Xing Quan Bound Ball, etc., making the experience much more fun and immersive. Thank you. Our next question comes from Yanyan Xiao from China International Capital Corporation Limited. Hi, Yanyan, please go ahead.

Speaker 2

谢谢王宇辰，接受我的这个提问。我的问题是关于海外业务的，我们看到这个公司在业绩材料里面披露公司的海外业务的月活达到了数千万，能否给我们介绍一下海外业务的一些进展？ Thanks, management, for taking my question, and my question is about overseas business. Can you provide us with a detailed update on the progress of overseas operations? Thank you.

Speaker 3

OK, 首先感谢杨洋杨的这个提问。在海外市场呢, 我们的布局近期也取得了较明显的这个进展。当前呢, 我们海外总的月活已经达到了数千万的量级。我们已经逐步搭建了覆盖游戏直播、游戏社区、应用分发和道具售卖和本地化营销等多个环节的游戏服务的能力, 并且积累了大量的海外游戏用户, 特别是像FPS、MOBA等品类。这也将为我们在未来海外开展更多的游戏分发、道具售卖等业务打好了坚实的基础。海外业务呢, 未来也有望成为我们公司重要的增长引擎之一。

Speaker 4

Our overseas initiatives are also gaining momentum. We are now reaching tens of millions of monthly active users internationally through our mobile application service platform, live streaming, and others. Through these products, we are able to build up our gamer communities, our local marketing capabilities, and accumulate a sizable user base of our hardcore gamers, particularly in genres like FPS and MOBA. These efforts well position us to capture opportunities in a growing overseas game-related service market.

Speaker 3

provides broader opportunities for our future development.

Speaker 4

As you might have noticed, we changed our definition of MAU this quarter to reflect the progress we've made during this period of transformation, particularly in overseas markets. What we've seen over the past few years and are convinced of is that the potential for international user base is immense in terms of growth and monetization opportunities. Thank you. We will then take our question from Nelson Chong from Citigroup Inc. Hi, Nelson, please go ahead.

Speaker 2

and positioning in AI gaming. Thank you. Thanks, management, for taking my questions, and congrats on the solid progress of business transformation during the quarter. My question is related to the company's future plans on AI development, especially in live streaming experience, eSports tournaments, Hu Xiao'ai AI desktop robot launch within this year, and the future positioning in AI gaming. Thank you.

Speaker 3

AI 超体则另外创造了全新的消费场景。我们的 AI 技术已经实现了从软件到硬件的这种跨越式的发展。AI 超体和知名的战队 Invictus Gaming 联名配套多款产品, 其形象拟真还原了选手的外观还有音色, 并且提供了陪练和情感陪伴的核心功能。这个产品也体现了将用户对战队的情感投射转化为实体消费的核心价值。

Speaker 4

As mentioned in prepared remarks, leveraging our proprietary gaming datasets, deep user insights, and years of content, we have built intelligent gaming analytic models and large language models for specific service needs. AI is becoming embedded in every aspect of our operations, from AI live streaming to AI-powered and AI services. Some initiatives enhance user experience, such as our AI agent, Hu Xiao'ai, which delivers real-time engaging commentary during eSports streams, boosting viewer interactions during those events. Others create new consumption opportunities, such as Huya AI SuperBot, which is a great example of that. In collaboration with the well-known eSports team Invictus Gaming, we announced these next-level robots that not only mirror players' looks and voices, but also offer core experiences like virtual sparring and emotional companionship.

Speaker 3

那Huya AI SuperBot呢依托Huya自研的这种游戏画面视觉的识别的与深度游戏策略的这个分析模型，构建了懂游戏、懂情绪、懂用户的智能的这个交互体系。那也基于Huya独有的这个海量的电竞赛事和游戏的知识库，那AI SuperBot呢可以更好地为玩家提供游戏的这个策略指导和陪练的服务。那另外一方面呢，根据Huya自研的这种双向的语音情绪那个识别的模型，AI SuperBot也可以通过和玩家的这个语气和对话内容来判断玩家的这个情绪，并给予相应的这个反馈。那也结合记忆图谱的能力，它甚至能够记住用户喜好的英雄、操作习惯和关键的时刻，让陪伴型的AI从功能响应跃升到情感连结的这个高度。

Speaker 4

Powered by our proprietary visual recognition technology and deep strategy analysis, the robot is close to get the game, get to you, and get your feelings. Leveraging our knowledge in games and eSports, the robot is your sparring partner and your coach. Again, using our proprietary models, our robot reads your mood from your tone and then your response. It also has a memory graph, which helps the robot remember what our users' favorite heroes are, what their preferred play styles are, and what their favorite moves are. Thank you. Now we will take our last question today from Maggie Ye from CLSA. Hello, Maggie. Please go ahead. Please unmute yourself. 可以听见吗? 可以听见吗? 喂, 哎, 好了, 现在好了。

Speaker 0

好的，管理层晚上好。那我们注意到，直播业务在二Q的收入占比现在是74%。那环比的话也是一个企稳的趋势。想请教一下管理层怎么看待未来直播业务的发展，以及与之相关的我们怎么去看待今年全年的这个收入和利润的趋势。 Thanks for taking my question. My question is related to the live streaming business, which accounted for 74% of total revenue this quarter and seems to have stabilized quarter over quarter. How do you think about the overall trend of live streaming business and as well as the total revenue trend for 2025, in addition to margin trend? Thanks a lot.

Speaker 3

billion, 总收入延续了上季度以来的恢复增长态势, 这也反映了我们战略转型下的稳步发展。这里面游戏相关服务、广告和其他收入同比增长 34.1%, 达到 RMB 414 million.

Speaker 4

Our live streaming revenue continues to stabilize with a slight increase to RMB 1.15 billion quarter over quarter. We continue to see overall revenue back on its growth trajectory, driven by our strong growth from game-related services, advertising, and others. This segment grew 34.1% year over year to RMB 4.14 million this quarter.

Speaker 3

根据目前的情况，在行业环境相对平稳的背景下，随着用户付费意愿的趋稳，我们预计直播收入规模将维持较为平稳的状态，而游戏相关服务、广告和其他收入今年还将实现同比较快的增长，尤其是我们继续加强与游戏行业的合作，探索新的增长领域。因此，基于目前的情况，我们预计今年HUYA下半年总收入将实现同比增长，全年收入也将会实现增长。

Speaker 4

Based on what we are seeing right now, we expect live streaming revenues to remain broadly steady as the overall industry and user behavior continues to stabilize. On the other hand, we expect game-related services, advertising, and other revenues to be the main driver for the company as we expand and deepen our partnerships with various game companies. All in all, we expect our total net revenues to grow in the second half of the year as well as the full year.

Speaker 3

第二方面, 第二季度我们将继续优化赛事等内容成本, 并在整体收入提升的影响下, 毛利率较第一季度环比提升达到13.5%。特别值得一提的是, 我们在本季度实现了Non-GAAP运营利润盈亏平衡, 我们还取得了Non-GAAP净利润大约¥48.0 million, 已连续6个季度盈利。我们将持续关注公司在经营利润层面的改善, 预计今年全年在Non-GAAP下, 公司正常经营产生的经营利润将会较去年有较明显的改善。

Speaker 4

In terms of profitability, in Q2, we continue to optimize our content costs, including those related to eSports events, and benefited from higher total net revenues. As a result, our gross margin improved sequentially to 13.5%. Notably, we achieved non-GAAP operating profit break-even this quarter and recorded a non-GAAP net profit of approximately RMB 48 million. This is our sixth consecutive profitable quarter. We will continue to focus on enhancing operating profitability and expect a meaningful improvement in our non-GAAP operating profit for the full year 2025 compared to 2024 under normal circumstances.

Speaker 3

另外也提醒一下大家，由于我们去年以来已经做了比较大金额的股东回报措施，账面现金盈余降低，加之市场利率波动等因素，今年下半年的利息收入我们预计将显著低于今年上半年的水平。大家在对我们的净利润做预估的时候，需要将这部分原因考虑进去。

Speaker 4

Also, as a reminder, our interest income in the second half of the year is expected to be significantly lower than in the first half, and this is due to a lower cash balance resulting from the sizable shareholder return measures that we implemented since last year, as well as the fluctuations in market interest rates. Please take this into consideration when doing your modeling for our net income for the remainder of the year. Thank you very much. Thank you, Mr. Nguyen, for joining us today. If you have further questions, please feel free to contact HUYA Investor Relations through the contact information provided on our website or presentation financial communications. This concludes today's call, and we look forward to speaking to you again next quarter. Thank you.