(HUYA) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the Fourth Quarter and Fiscal Year 2022 Earnings Conference Call for HUYA Inc. (Operator Instructions) Today's conference call is being recorded.

女士們，先生們，您好。感謝您支持虎牙公司第四季度和 2022 財年收益電話會議（操作員說明）今天的電話會議正在錄製中。

I'll now turn the call over to Ms. Hanyu Liu, Company Investor Relations. Please go ahead.

我現在將電話轉給公司投資者關係部的 Hanyu Liu 女士。請繼續。

Hello, everyone, and welcome to HUYA's Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. 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 in a few hours.

大家好，歡迎來到虎牙2022財年第四季度財報電話會議。該公司的財務和運營業績今天早些時候發布並發佈在網上。您還可以訪問 IR 網站 ir.huya.com 查看收益新聞稿。幾個小時後，IR 網站將提供通話重播。

Participants on today's call will be Mr. Rongjie Dong, Chief Executive Officer of HUYA; and Ms. Ashley Wu, Vice President of Finance. Management will begin with prepared remarks and the call will conclude with a Q&A session.

參加今天電話會議的有虎牙首席執行官董榮傑先生；財務副總裁 Ashley Wu 女士。管理層將從準備好的發言開始，電話會議將以問答環節結束。

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.

在我們繼續之前，請注意今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，該公司的業績可能與今天表達的觀點存在重大差異。

Further information regarding this and other risks and uncertainties is included in the company's prospectus 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 under applicable law.

有關此風險和其他風險和不確定性的更多信息包含在公司的招股說明書和其他提交給美國證券交易委員會的公開文件中。公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

Please also note that HUYA's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. HUYA's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited mostly directly comparable GAAP measures.

另請注意，滬亞的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務措施的討論。 HUYA 的新聞稿包含未經審計的非 GAAP 措施與未經審計的大多數直接可比的 GAAP 措施的調節。

I will now turn the call over to our CEO, Mr. Rongjie Dong. Please go ahead.

我現在將把電話轉給我們的首席執行官董榮傑先生。請繼續。

Hello, everyone. Thank you for joining our conference call today.

大家好。感謝您參加我們今天的電話會議。

Amid ongoing macro headwinds, 2022 was a volatile year for us. While we delivered steady user growth for the year, our full year revenues came in at RMB 9.2 billion, showing an annual decline and a net loss. Our focus has been on controlling the aspects of our business where we can make improvements to shore up our solid foundation and prepare for growth in a more favorable market environment ahead. In the meantime, we've honed our content and product offerings, as well as improved our operational efficiency, while fulfilling our commitment to corporate social responsibility.

在持續的宏觀逆風中，2022 年對我們來說是動蕩的一年。雖然我們全年實現了穩定的用戶增長，但我們全年的收入為人民幣 92 億元，同比下降並出現淨虧損。我們的重點一直是控制我們業務的各個方面，我們可以在這些方面進行改進，以鞏固我們堅實的基礎，並為未來更有利的市場環境中的增長做好準備。與此同時，我們完善了我們的內容和產品供應，並提高了我們的運營效率，同時履行了我們對企業社會責任的承諾。

I would like to take the opportunity on this call today, to share with you some of our progress and strategy moving forward.

我想藉此機會在今天的電話會議上與大家分享我們的一些進展和未來的戰略。

On the user side, we continued to bring high-quality e-sports tournaments and entertainment programs to our users. We also further enhanced the broadcaster and viewer interactive experience by partnering with game studios. As a result, we were able to achieve stable user scale and a healthy user engagement level in the fourth quarter.

在用戶端，我們持續為用戶帶來優質的電競賽事和娛樂節目。我們還通過與遊戲工作室合作進一步增強了廣播公司和觀眾的互動體驗。因此，我們能夠在第四季度實現穩定的用戶規模和健康的用戶參與度。

At the same time, we adopted stringent policies for our marketing spend to keep our expenses down, lowering Q4 sales and marketing expenses by 48% year-over-year. In the fourth quarter, Huya Live's mobile MAUs reached 85.5 million, slightly up compared with the same period last year. On an annual basis, the mobile MAUs were 84.3 million, growing by 4% from 80.9 million in 2021. We also maintained our Huya Live app's next month user retention rate above a 70% average for the full year.

與此同時，我們對營銷支出採取了嚴格的政策，以降低支出，使第四季度的銷售和營銷支出同比下降 48%。第四季度，虎牙直播移動端MAU達到8550萬，同比略有上升。按年計算，移動 MAU 為 8430 萬，比 2021 年的 8090 萬增長了 4%。我們還將虎牙直播應用的下個月用戶保留率保持在全年平均 70% 以上。

Next, let me share with you some highlights on our recent product updates and the collaboration efforts with game companies.

接下來，讓我和大家分享一下我們最近的產品更新和與遊戲公司合作的一些亮點。

We have been expanding our portfolio of live streaming interactive features. In addition to the popular Gift Drops feature, we recently introduced an upgraded Treasure Digging feature.

我們一直在擴展我們的直播互動功能組合。除了廣受歡迎的 Gift Drops 功能外，我們最近還推出了升級後的 Treasure Digging 功能。

These additions further link broadcasters' streaming behaviors with suitable audiences, and allow not only participating viewers to earn rewards, but also broadcasters to collect rewards for their activities. After a broadcaster completes a certain stream time or other streaming-related activities, Ores will be released for users to claim. Users can also obtain exclusive Ores by participating in the treasure digging live broadcast room, via check-ins and posting comments. Ores can then be traded-in for a variety of game props provided by the relevant game company.

這些新增內容進一步將主播的流媒體行為與合適的觀眾聯繫起來，不僅讓參與的觀眾獲得獎勵，主播也可以為他們的活動收集獎勵。主播完成一定的直播時間或其他直播相關活動後，將釋放礦石供用戶領取。用戶還可以通過參與挖寶直播間、簽到、留言等方式獲得專屬礦石。然後礦石可以換取相關遊戲公司提供的各種遊戲道具。

This rewards system has been proven highly effective with our users. Last December, together with popular broadcasters on our platform, we launched Riot Games Carnival treasure digging activities for five major League of Legends IP games. The game studio offered 400, 000 pieces of free game tools and a cumulative 2.8 million users participated in the 20-day campaign, achieving a successful outcome from our innovative cooperation. Our collaboration is also a good representation of Huya's continuous effort to provide more services around games and our ambition to diversify and increase our presence in the game industry value chain.

該獎勵系統已被我們的用戶證明是非常有效的。去年12月，我們聯合平台上的熱門主播，針對五大英雄聯盟IP遊戲推出了Riot Games Carnival挖寶活動。遊戲工作室提供了400、000件免費遊戲工具，累計280萬用戶參與了為期20天的活動，我們的創新合作取得了圓滿的成果。我們的合作也很好地體現了虎牙圍繞遊戲提供更多服務的持續努力，以及我們多元化和增加我們在遊戲產業價值鏈中的影響力的雄心。

In terms of our video business, our broadcasters continued to be the driving force of video content production, with more original creators joining our platform to enrich Huya's supply of video content. It is also worth mentioning that our AI real-time editing function is being utilized more often by our creators. This tool facilitates the re-creation of live content. Through automatic editing and processing capabilities, we can improve production efficiency and motivate both users and broadcasters.

在我們的視頻業務方面，我們的主播繼續成為視頻內容生產的推動力，更多原創者加入我們的平台，豐富了虎牙的視頻內容供應。另外值得一提的是，我們的 AI 實時編輯功能正在被我們的創作者更頻繁地使用。該工具有助於重新創建實時內容。通過自動編輯和處理能力，我們可以提高生產效率，並激勵用戶和廣播公司。

Our efforts to support our creators drove the total number of video uploads in 2022 up by nearly 50%, compared with the previous year. Meanwhile, we have been enhancing users' video viewing experience and video content consumption. We did this through both embedded videos in our game community and by introducing an immersive vertical-video viewing format. With these enhancements, we achieved about 40% growth in total viewing time for on-demand videos on our mobile app in the fourth quarter, compared with the same period last year. As we build out a more comprehensive video content ecosystem, we believe we can increase user stickiness and also drive communitization across our Huya platform.

我們為支持創作者所做的努力使 2022 年的視頻上傳總數與上一年相比增長了近 50%。同時，我們一直在提升用戶的視頻觀看體驗和視頻內容消費。我們通過遊戲社區中的嵌入式視頻和引入身臨其境的垂直視頻觀看格式來做到這一點。通過這些改進，與去年同期相比，我們在第四季度通過移動應用程序點播視頻的總觀看時間增長了約 40%。隨著我們構建更全面的視頻內容生態系統，我們相信我們可以提高用戶粘性並推動整個虎牙平台的社區化。

In terms of our corporate social responsibility initiatives, in 2022 we partnered with over 9,800 broadcasters and held more than 8,000 live streaming sessions promoting positive social impact. Topics covered areas such as traditional culture preservation, environmental protection and purifying the online environment from negative influences. During the year, we also joined forces with a few international NGOs to launch the "Protect Our Home Planet" campaign.

在我們的企業社會責任舉措方面，2022 年我們與 9,800 多家廣播公司合作，舉辦了 8,000 多場直播會議，以促進積極的社會影響。主題涵蓋傳統文化保護、環境保護和淨化網絡環境免受負面影響等領域。年內，我們還與一些國際非政府組織合作，發起了“保護我們的地球家園”活動。

These included a series of related public awareness activities featuring high-profile KOLs and our leading broadcasters. Additionally, we promoted the campaign by using a new virtual gallery digital format. Millions of tournament viewers also enjoyed this new format, which was integrated into our tailor-made virtual e-sports venue for the 2022 Season of LoL World Championship final in Q4. These efforts have not only enhanced Huya's brand influence but also contributed to the healthy development of the live streaming industry.

其中包括一系列相關的公眾意識活動，其中包括備受矚目的 KOL 和我們的主要廣播公司。此外，我們通過使用新的虛擬畫廊數字格式來推廣該活動。數百萬錦標賽觀眾也喜歡這種新形式，它被整合到我們為 2022 年第四季度英雄聯盟世界錦標賽決賽量身定制的虛擬電子競技場館中。這些努力不僅提升了虎牙的品牌影響力，也為直播行業的健康發展做出了貢獻。

While we achieved healthy user scale expansion for the year, we were impacted by the relatively weak market environment in 2022, which constrained user spending power. Regulatory policies introduced during the year have also placed added pressure on the industry by instituting higher compliance requirements for both gaming and live streaming sectors.

雖然我們全年實現了健康的用戶規模擴張，但我們受到 2022 年相對疲軟的市場環境的影響，這限制了用戶的消費能力。年內出台的監管政策也對遊戲和直播行業提出了更高的合規要求，給行業帶來了更大的壓力。

Accordingly, we made prudent adjustments to our products and operations, and will continue to strengthen our abilities to meet compliance regulations and ensure our sustainable development. The steps we have taken in 2022 to optimize our operations, costs and expenses place us in a strong position to benefit once the market begins to recover.

相應地，我們對產品和運營進行了審慎調整，並將繼續加強合規合規能力，確保我們的可持續發展。我們在 2022 年採取的優化運營、成本和支出的措施使我們處於有利地位，一旦市場開始復蘇就可以從中受益。

Although there are still some uncertainties in the market environment in the near term, we will continue to strengthen our services for users and content creators, and provide high-quality content in 2023 and going forward. We will also advance our product development capabilities and implement innovative technology to further consolidate Huya's core competencies.

儘管近期市場環境仍存在一些不確定性，但我們將繼續加強對用戶和內容創作者的服務，在2023年及未來提供優質內容。我們還將提升我們的產品開發能力和實施創新技術，以進一步鞏固虎牙的核心競爭力。

In doing so, we can maximize our advantages and maintain our leading position in the game live streaming market in China. In the meantime, we will actively explore opportunities to diversify our revenue streams and broaden our business ecosystem.

這樣做，我們可以最大限度地發揮我們的優勢，並保持我們在中國遊戲直播市場的領先地位。與此同時，我們將積極探索多元化收入來源和拓寬業務生態系統的機會。

With that overview, I will now turn the call over to our VP of Finance, Ashley Wu, to share more details on our operating metrics and financials. Ashley, please go ahead.

有了這個概述，我現在將把電話轉給我們的財務副總裁 Ashley Wu，分享有關我們的運營指標和財務的更多細節。阿什利，請繼續。

Thank you, Mr. Dong, and hello, everyone.

謝謝董總，大家好。

Following Mr. Dong's remarks, I'll start with some updates on our content enrichment and diversification initiatives.

在董先生的發言之後，我將首先介紹我們內容豐富和多元化舉措的一些最新情況。

In the fourth quarter of 2022, we broadcasted over 70 third-party professional e-sports tournaments, and the total viewership of those events reached approximately 360 million. The largest viewership during the quarter was for LoL Worlds 2022, Honor of Kings International Championship, Demacia Cup and CFS Grand Finals.

2022年第四季度，我們轉播了70多場第三方職業電競賽事，總收視人數達到約3.6億。本季度收視率最高的是 2022 年英雄聯盟世界總決賽、王者榮耀國際錦標賽、德瑪西亞杯和 CFS 總決賽。

While the time zone differences between China and the U.S. for Worlds 2022 had some impact on the live broadcast views, the overall viewing data of our core users remained stable. Wild Rift League Season 2 also gained a lot of traction. In particular, with our deepened cooperation with the LoL Wild Rift game on tournament viewing, we introduced interactive prediction features and a 4K-HDR viewing experience for those matches. These innovative features also make it easier for users to switch between the in-game streaming channel and our platform.

雖然2022年世界總決賽中美時差對直播觀看量有一定影響，但我們核心用戶的整體觀看數據保持穩定。 Wild Rift League 第 2 季也獲得了很多關注。特別是，隨著我們與 LoL Wild Rift 遊戲在錦標賽觀看方面的深入合作，我們為這些比賽引入了交互式預測功能和 4K-HDR 觀看體驗。這些創新功能還使用戶可以更輕鬆地在遊戲內流媒體頻道和我們的平台之間切換。

The licensed tournament content supply in Q4 was not as high as in previous quarters, mainly due to event seasonality and certain disruptions from the COVID-19 resurgence. As such, we added more self-produced programs during the period. In the fourth quarter, we broadcasted over 45 Huya-organized e-sports tournaments and entertainment PGC shows, generating total viewership of approximately 150 million.

第四季度的許可錦標賽內容供應不如前幾個季度那麼多，這主要是由於賽事的季節性和 COVID-19 捲土重來造成的某些中斷。因此，我們於期間增加了更多自製節目。第四季度，我們播出了超過 45 場虎牙組織的電競比賽和娛樂 PGC 節目，總收視率約為 1.5 億。

In addition to fan-favorites such as PeaceKeeper Elite All Star Annual Invitational and Thunder series of Honor of Kings, we held the Huya platform qualifier for the Demacia Cup, which gained great traction with our users.

除了維和精英全明星年度邀請賽、王者榮耀雷霆系列等深受粉絲喜愛的賽事外，我們還舉辦了德瑪西亞杯虎牙平台預選賽，獲得了廣大用戶的好評。

The commentary programs hosted by well-known streamers and former professional players for both Worlds 2022 and HoK International Championship, also helped promote the popularity of those events. Additionally, during the quarter, we launched two seasons of the dating variety show Heartbeat 72 Hours, further enriching the pan-entertainment content on our platform.

由知名主播和前職業選手主持的 2022 年世界總決賽和 HoK 國際錦標賽的解說節目也有助於提升這些賽事的知名度。此外，本季度，我們推出了兩季相親綜藝《心動72小時》，進一步豐富了我們平台的泛娛樂內容。

Under our strict screening process for content procurement and production, we had over 30% fewer total licensed and self-produced events and programs in 2022, compared with the previous year. Our total viewing data, however, remained steady. Although our Q4 tournament licensing costs were significantly higher due to Worlds 2022, which was a major contributor to our gross loss for the quarter, we will stay true to our focus of covering key events that are popular among users, while striving to achieve better ROIs.

根據我們對內容採購和製作的嚴格篩選流程，與上一年相比，我們在 2022 年獲得許可和自行製作的活動和節目總數減少了 30% 以上。然而，我們的總觀看數據保持穩定。儘管由於 2022 年世界錦標賽，我們的第四季度錦標賽許可成本顯著增加，這是我們本季度毛虧損的主要原因，但我們將繼續專注於覆蓋用戶喜愛的關鍵賽事，同時努力實現更好的投資回報率.

As we disclosed in January, we entered into an amended licensing agreement for a series of League of Legends matches. We believe this will effectively lower our overall tournament licensing costs in 2023.

正如我們在 1 月份披露的那樣，我們為一系列英雄聯盟比賽簽訂了一份修訂後的許可協議。我們相信這將有效降低我們在 2023 年的總體錦標賽許可成本。

In the fourth quarter, we also continued to optimize broadcaster-related costs and bandwidth usage. We became more efficient with our operating expenses in Q4, reducing our total operating expenses by 35% year-over-year and 10% quarter-over-quarter. Our savings were primarily driven by lower expenses associated with sales and marketing channels and personnel. In our overseas business, we further narrowed our operating loss, thanks to our strategy to concentrate on key markets and promote greater localization. We plan to continue strengthening our prudent cost and expense control strategy as we move forward.

在第四季度，我們還繼續優化與廣播相關的成本和帶寬使用。我們在第四季度的運營費用方面變得更有效率，總運營費用同比減少 35%，環比減少 10%。我們的節餘主要是由於與銷售和營銷渠道及人員相關的費用減少。在我們的海外業務中，我們進一步縮小了我們的經營虧損，這得益於我們專注於重點市場和促進更大程度本地化的戰略。我們計劃在前進的過程中繼續加強審慎的成本和費用控制策略。

Next, moving on to our Q4 financial details. Our total net revenues were RMB 2.1 billion for Q4, a decline from RMB 2.81 billion for the same period last year.

接下來，繼續我們的第四季度財務細節。我們第四季度的總淨收入為人民幣 21 億元，低於去年同期的人民幣 28.1 億元。

Live streaming revenues were RMB 1.98 billion for Q4, compared with RMB 2.61 billion for the same period last year. The decrease was primarily due to lower average spending per paying user and a decreased number of paying users on Huya Live, as the challenging macro and regulatory environment adversely affected paying users' sentiment.

第四季度直播收入為人民幣 19.8 億元，而去年同期為人民幣 26.1 億元。減少的主要原因是由於具有挑戰性的宏觀和監管環境對付費用戶的情緒產生不利影響，因此每位付費用戶的平均支出較低以及虎牙直播的付費用戶數量減少。

Advertising and other revenues were RMB 127 million for Q4, compared with RMB 196 million for the same period last year. This was primarily due to soft demand for advertising services resulting from the challenging macro environment, as well as lower content sub-licensing revenues.

第四季度廣告及其他收入為人民幣 1.27 億元，上年同期為人民幣 1.96 億元。這主要是由於充滿挑戰的宏觀環境導致對廣告服務的需求疲軟，以及較低的內容分許可收入。

I also would like to point out that following our amended licensing agreement for League of Legends matches in January, we no longer own the sub-licensing rights for LPL matches during the 2023 to 2025 period. Since the sub-licensing of the LPL matches was a primary contributor to our content sub-licensing revenues in 2022, we expect the content sub-licensing revenues to decline significantly in 2023.

我還想指出，在我們於 1 月份修訂了英雄聯盟比賽許可協議後，我們不再擁有 2023 年至 2025 年期間 LPL 比賽的分許可權。由於 LPL 比賽的分許可是我們 2022 年內容分許可收入的主要貢獻者，我們預計內容分許可收入將在 2023 年大幅下降。

Cost of revenues decreased by 15% year-over-year to RMB 2.39 billion for Q4, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs.

第四季度的收入成本同比下降 15% 至人民幣 23.9 億元，這主要是由於收入分成費用和內容成本以及帶寬成本的下降。

Revenue sharing fees and content costs decreased by 12% year-over-year to RMB 2.17 billion for Q4, primarily due to the decrease in revenue sharing fees associated with the decline in live streaming revenues. This is partially offset by the increase in spending on e-sports content, which was mainly related to the higher content cost booked for LoL Worlds 2022 in Q4 2022.

第四季度收入分成費用和內容成本同比下降 12% 至人民幣 21.7 億元，主要是由於直播收入下降導致收入分成費用減少。這部分被電子競技內容支出的增加所抵消，這主要與 2022 年第四季度為 LoL Worlds 2022 預訂的內容成本較高有關。

Bandwidth costs decreased by 46% year-over-year to RMB 100 million for Q4. This was primarily due to improved bandwidth cost management and continued technology enhancement efforts, as well as less bandwidth usage as a result of strategic adjustments in our overseas business to stay focused on key markets.

第四季度帶寬成本同比下降 46% 至 1 億元人民幣。這主要是由於改進了帶寬成本管理和持續的技術改進工作，以及由於我們的海外業務戰略調整以繼續專注於關鍵市場而導致帶寬使用量減少。

Gross loss was RMB 284 million for Q4, primarily due to lower revenues and increased content costs related to e-sports content, particularly Worlds 2022. Gross margin was negative 13.5% for Q4.

第四季度的毛虧損為人民幣 2.84 億元，這主要是由於與電子競技內容相關的收入下降和內容成本增加，尤其是 2022 年世界總決賽。第四季度的毛利率為負 13.5%。

Excluding share-based compensation expenses, non-GAAP gross loss was RMB 278 million, and non-GAAP gross margin was negative 13.2% for Q4.

剔除股權激勵費用，第四季度非美國通用會計準則毛虧損為人民幣 2.78 億元，非美國通用會計準則毛利率為負 13.2%。

Research and development expenses decreased by 13% year-over-year to RMB 144 million for Q4, primarily due to decreased personnel-related expenses and share-based compensation expenses.

第四季度研發費用同比下降 13% 至人民幣 1.44 億元，主要是由於人事相關費用和股權激勵費用減少。

Sales and marketing expenses decreased by 48% year-over-year to RMB 113 million for Q4, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses.

第四季度銷售和營銷費用同比下降 48% 至人民幣 1.13 億元，主要是由於營銷和推廣費用以及人員相關費用的減少。

General and administrative expenses decreased by 13% year-over-year to RMB 79 million for Q4, primarily due to decreased share-based compensation expenses.

第四季度的一般和管理費用同比下降 13% 至人民幣 7900 萬元，主要是由於股權激勵費用減少。

Other income was RMB 44 million for Q4, compared with RMB 56 million for the same period of 2021, primarily due to lower tax refunds and government subsidies.

第四季度其他收入為人民幣 4400 萬元，而 2021 年同期為人民幣 5600 萬元，這主要是由於退稅和政府補貼減少。

As a result, operating loss was RMB 577 million for Q4, compared with RMB 457 million for the same period of 2021.

因此，第四季度的經營虧損為人民幣 5.77 億元，而 2021 年同期為人民幣 4.57 億元。

Interest and short-term investments income were RMB 102 million for Q4, compared with RMB 62 million for the same period of 2021, primarily due to increased interest rates.

第四季度的利息和短期投資收入為人民幣 1.02 億元，而 2021 年同期為人民幣 6,200 萬元，這主要是由於利率上升。

Net loss attributable to HUYA Inc. was RMB 524 million for Q4, compared with RMB 313 million for the same period of 2021.

第四季度歸屬於虎牙公司的淨虧損為人民幣 5.24 億元，而 2021 年同期為人民幣 3.13 億元。

Non-GAAP net loss attributable to HUYA Inc. was RMB 440 million for Q4, compared with RMB 242 million for the same period of 2021. Non-GAAP net loss margin was 20.9% for Q4. Diluted net loss per ADS was RMB 2.16 for Q4. Non-GAAP diluted net loss per ADS was RMB 1.81 for Q4.

第四季度歸屬於滬亞公司的非美國通用會計準則淨虧損為人民幣 4.4 億元，而 2021 年同期為人民幣 2.42 億元。第四季度非美國通用會計準則淨虧損率為 20.9%。第四季度每 ADS 的攤薄淨虧損為 2.16 元人民幣。第四季度非美國通用會計準則每 ADS 攤薄淨虧損為 1.81 元人民幣。

As of December 31, 2022, the Company had cash and cash equivalents, short-term deposits, short-term investments and long-term deposits of RMB 10.7 billion, compared with RMB 11 billion as of September 30, 2022.

截至2022年12月31日，公司擁有現金及現金等價物、短期存款、短期投資和長期存款人民幣107億元，截至2022年9月30日為人民幣110億元。

Moving on to our full year 2022 results. Total net revenues for 2022 decreased to RMB 9.22 billion, from RMB 11.35 billion for the prior year. Live streaming revenues were RMB 8.2 billion for 2022, compared with RMB 10.19 billion for the prior year. Advertising and other revenues were RMB 1.02 billion for 2022, compared with RMB 1.17 billion for the prior year.

繼續我們的 2022 年全年業績。 2022 年的總淨收入從上年的 113.5 億元人民幣降至 92.2 億元人民幣。 2022 年直播收入為 82 億元人民幣，上年為 101.9 億元人民幣。 2022 年廣告及其他收入為 10.2 億元人民幣，上年為 11.7 億元人民幣。

Non-GAAP gross profit was RMB 643 million, and non-GAAP gross margin was 7% for 2022. Non-GAAP net loss attributable to HUYA Inc. was RMB 281 million and non-GAAP net loss margin was 3.1% for 2022. Non-GAAP diluted net loss per ADS was RMB 1.17 for 2022.

2022年非美國通用會計準則毛利為人民幣6.43億元，非美國通用會計準則毛利率為7%。2022年歸屬於滬亞公司的非美國通用會計準則淨虧損為人民幣2.81億元，非美國通用會計準則淨虧損率為3.1%。 -2022 年每 ADS 的 GAAP 攤薄淨虧損為 1.17 元人民幣。

To be mindful of the length of our earnings call, for additional details on our full year 2022 financial results, I encourage listeners to refer to our earnings press release issued earlier today.

請注意我們的財報電話會議的長度，如需了解我們 2022 年全年財務業績的更多詳細信息，我鼓勵聽眾參考我們今天早些時候發布的財報新聞稿。

With that, I would now like to open the call to your questions.

有了這個，我現在想打開你的問題的電話。

(Operator Instructions) Our first question comes from the line of Thomas Chong from Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) I have 2 questions. The first question is about the user trend for this year? And number 2 is about the approvals. How should we think about the new games getting approved and with my -- user growth momentum?

（外語）我有兩個問題。第一個問題是今年的用戶趨勢？第二是關於批准。我們應該如何看待新遊戲獲得批准以及我的用戶增長勢頭？

(foreign language)

（外語）

[Interpreted] Thank you. In terms of overall user strategy this year compared with the expansion of MAU, we will pay more attention to the stickiness and participation of users on the platform. Through more immersive community-based and interactive product strategies, we will improve the users' consumption on the platform content and also to improve the user retention and interaction rates, so as to increase the users' payment on our platform. At the same time, we'll continue to spend prudently on promotion and channels.

[翻譯] 謝謝。在今年整體的用戶策略上，相比MAU的擴張，我們會更注重用戶對平台的粘性和參與度。通過更具沉浸感的社區化互動產品策略，提高用戶對平台內容的消費，提高用戶留存率和互動率，從而增加用戶對我們平台的付費。與此同時，我們將繼續謹慎地在促銷和渠道上花錢。

(foreign language)

（外語）

[Interpreted] In the first quarter of this year due to the fact that the economy would just open up and a number of broadcasters on the platform had decreased in the short-term due to the COVID infections and the Spring Festival in China, so some users has also swift to the off-line activities, the level of MAU at the beginning of this year was affected. But of course, we believe that these impacts are relatively temporary and we have seen stabilizing signs recently. It is expected that the future user number will return to a more stable trend.

[解讀]今年一季度，由於經濟剛剛開放，平台上的主播數量因疫情和中國春節短期減少，所以一些用戶也迅速轉向線下活動，今年年初的MAU水平受到影響。但當然，我們認為這些影響是相對暫時的，我們最近看到了穩定跡象。預計未來用戶數將回歸到更穩定的趨勢。

(foreign language)

（外語）

[Interpreted] With the normalization of the release of licenses of games, some major games have obtained licenses and have gone -- have been launched or will be launched soon. So the live content of these games is if they are popular and with the launch of e-sports events of these games, we believe that it will be conducive to the growth of the users of live platform, and we will also have the opportunity to bring us more additional user growth.

【解讀】隨著遊戲授權發放常態化，一些主力遊戲已經獲得授權，已經上線或即將上線。所以這些遊戲的直播內容如果火了，隨著這些遊戲的電競賽事的推出，我們相信會有利於直播平台用戶的增長，我們也有機會為我們帶來更多額外的用戶增長。

At the same time, we'll make sufficient preparations for the launch of new games such as the recruitment of streamers or hosting events, cooperating with game studios to provide incentives for the launch of new games, provide traffic and other resources support for new games so as to seize the opportunities of new games in a timely manner.

同時，我們會做好新遊戲上線的充分準備，如主播招募或舉辦活動，與遊戲工作室合作，為新遊戲上線提供激勵，為新遊戲提供流量等資源支持以便及時抓住新遊戲的機會。

Our next question comes from the line of Yiwen Zhang from China Renaissance.

我們的下一個問題來自華興資本張一文的台詞。

(foreign language) My question is regarding live stream and (inaudible) strategy for this year. And specifically, we signed a management agreement on the -- tournament back in January, what's the impact of our financial operation?

（外語）我的問題是關於今年的直播和（聽不清）策略。具體來說，我們在 1 月份就錦標賽簽署了一項管理協議，這對我們的財務運營有何影響？

(foreign language)

（外語）

[Interpreted] From the perspective of live broadcast content, we'll continue to strengthen the advantages of the streamers and also to enhance the competitiveness of the platform by providing more services and revenue sources for them.

【解讀】在直播內容方面，我們將繼續強化主播的優勢，同時通過為主播提供更多的服務和收入來源，提昇平台的競爭力。

At the same time, the application of more live interaction functions and virtual life forecast technologies will help us to enrich the live broadcast forms and make the content of usage the streamers more innovative and interesting for the users.

同時，更多直播互動功能和虛擬生活預報技術的應用，將有助於我們豐富直播形式，讓主播的使用內容更具創新性和趣味性。

(foreign language)

（外語）

[Interpreted] In terms of e-sports events, we mentioned in the previous conference call that we'll continue to strictly screen the investment opportunities in copyrighted and self-run events.

【解讀】在電競賽事方面，我們在之前的電話會議中提到，我們將繼續嚴格篩選版權和自辦賽事的投資機會。

And in the copyrighted championship, we will strive for better commercial terms with all the copyright owners. And in the self-made content, we'll focus more on forming high-quality HUYA competition brand and to consolidate IP metrics of self-made content, and we'll continue to reduce the procurement and investment for some relatively poor performing event content.

而在有版權的錦標賽中，我們將爭取與所有版權所有者爭取更好的商業條款。而在自製內容方面，我們將更加註重打造優質的虎牙賽事品牌，夯實自製內容的IP指標，對於一些表現相對較差的賽事內容，我們將繼續減少採購和投入。 .

(foreign language)

（外語）

[Interpreted] At present, we'll continue to cover the LPL of the LoL, the KPL, the PEL of Peacekeeper Elite, the LL Mobile and the CrossFire professional league as our main event. We will also have some exclusive events such as Dota 2 or CS:GO series events of ESL and LCK events of the League of Legends. So if there are new game-related e-sports events on the market made available, we would also dynamically evaluate and introduce new events if that is possible.

【解讀】目前，我們將繼續以英雄聯盟的LPL、KPL、和平精英的PEL、LL Mobile和穿越火線職業聯賽為主要賽事。我們還會有一些獨家賽事，比如ESL的Dota 2或者CS:GO系列賽事，英雄聯盟的LCK賽事。因此，如果市場上有新的與遊戲相關的電子競技賽事可用，我們也會在可能的情況下動態評估和引入新賽事。

(foreign language)

（外語）

[Interpreted] As for the operational and financial impact of the supplementary agreement, we reached a supplementary agreement on the legal -- event in January this year through a friendly negotiation with the copyright owner and specifically in the year of 2023 throughout to 2025. In addition to LPL-related events, we added a copyright of key events such as the championship and Demacia Cup. In terms of the finance, the total cost of the event in the agreement covered will be significantly lower than that in 2022.

【解讀】關於補充協議的運營和財務影響，我們在今年1月通過與版權方的友好協商，特別是2023年至2025年就法律事件達成了補充協議。除了LPL相關賽事，我們還新增了冠軍賽、德瑪西亞杯等重點賽事的版權。在資金方面，協議涵蓋的賽事總成本將明顯低於2022年。

At the same time, as HUYA will no longer have the right to sublicense LPL events, our revenue from copyright distribution will decrease. In general, we expect that the cost of the relevant events will decrease more than the reduction of the copyright revenue in 2023 compared with 2022, which is a positive effect on the overall cost structure of our company.

同時，由於虎牙將不再擁有LPL賽事轉授權權，我們的版權分銷收入將減少。總體而言，我們預計 2023 年相關活動的成本較 2022 年的降幅將超過版權收入的降幅，這對我們公司的整體成本結構是一個積極的影響。

(foreign language)

（外語）

[Interpreted] From the users' perspective, as there are more platforms covering these events, we do not rule out that there is going to be some dilution in the population watching on our platform, but we believe that this overall impact is controllable, which will be conducive to better dissemination of the event itself and also help the vigorous development of e-sports ecosystem.

[解讀]從用戶的角度來看，隨著更多的平台覆蓋這些賽事，我們不排除我們平台上的觀看人數會有所稀釋，但我們認為這種整體影響是可控的，這將有利於更好地傳播賽事本身，也有助於電競生態圈的蓬勃發展。

There are still some top-tier copyrighted events and self-made events only available in HUYA. In addition, we continue to improve the viewing and interactive experiences in our platform for those events, which will be very competitive advantages for us to gaining users.

還有一些頂級版權賽事和自製賽事只有在虎牙才有。此外，我們將繼續改善我們平台上這些活動的觀看和互動體驗，這將是我們贏得用戶的非常有競爭力的優勢。

Our Next question comes from the line of Ritchie Sun from HSBC.

我們的下一個問題來自匯豐銀行的Ritchie Sun。

(foreign language) I will translate this myself. My question is about the live streaming revenue recovery situation as well as the 2022 overall total revenue growth expectation.

（外語）我自己翻譯。我的問題是關於直播收入恢復情況以及2022年整體總收入增長預期。

(foreign language)

（外語）

[Interpreted] In terms of live broadcast revenue, after the launch of the new policy last May, we subsequently implemented it according to the requirement and the impact of these adjustments on revenue mainly began in June. So in this case, the domestic live forecast revenue base in the first half of 2022 was relatively high. So we expect that the revenue in the first half of this year will be weaker year-on-year.

【解讀】在直播收入方面，去年5月新政策出台後，我們隨後按要求執行，這些調整對收入的影響主要從6月份開始。所以在這種情況下，國內2022年上半年的直播預報收入基數是比較高的。所以我們預計今年上半年的營收會同比走弱。

Moreover, from a seasonal perspective, due to fewer activities and the Chinese New Year festival and other factors, Q1 is generally a off-season for live streaming revenue, and this year will also be affected by some factors after the COVID open up as well.

此外，從季節性來看，由於活動較少和春節等因素，Q1總體上是直播收入的淡季，今年COVID開放後也會受到一些因素的影響。 .

(foreign language)

（外語）

[Interpreted] So we hope that the revenue of subsequent quarters will gradually stabilize because on one hand, the year-on-year base will be better, and we are also continuing to polish our product and operational activities so as to enhance the monetization of our business operations, such as introducing some new interactive plays as well as optimizing the design of the virtual gift.

[解讀]所以我們希望後續幾個季度的收入會逐漸穩定，因為一方面，同比基礎會更好，我們也在繼續打磨我們的產品和運營活動，以提高我們的業務運營，例如引入一些新的互動遊戲以及優化虛擬禮物的設計。

At the same time, we remain optimistic about the recovery of the overall economic environment and the launch of more games.

同時，我們對整體經濟環境的複蘇和更多遊戲的推出保持樂觀。

(foreign language)

（外語）

[Interpreted] A small part of our live's revenue comes from our overseas business, NIMO. And due to the business optimization since last April, the revenue had experienced an year-on-year decrease since the second quarter of 2022. And at present, on the basis of continuing to strengthen the localized operation, we also expand NIMO's entertainment content, which we believe will be conducive to generate improvements for our commercial performance and overseas revenue for our business.

【解讀】我們live的一小部分收入來自我們的海外業務NIMO。並且由於去年4月開始的業務優化，2022年二季度以來收入同比下降。而目前在繼續加強本土化運營的基礎上，我們還拓展了NIMO的娛樂內容，我們相信這將有助於改善我們的商業業績和我們業務的海外收入。

(foreign language)

（外語）

[Interpreted] In terms of other revenues, with the recovery of market environment and the licensing coming up again this year, we believe that advertising revenue will have some opportunity to recover this year. However, because of the supplementary agreement we signed in January, this will lead to some decline in our copyright revenue compared with the year 2022, we predict that the overall revenue of advertising and other factors may decline. At the same time, we are also exploring new business opportunities, including games and et cetera, hoping to get to some success.

【解讀】其他收入方面，隨著今年市場環境的回暖和授權的再次來臨，我們認為今年廣告收入會有一定的回昇機會。但是，因為我們在一月份簽署了補充協議，這將導致我們的版權收入與 2022 年相比有所下降，我們預計廣告和其他因素的整體收入可能會下降。同時，我們也在探索新的商機，包括遊戲等，希望能夠取得一些成功。

Our next question comes from the line of Lei Zhang from Bank of America.

我們的下一個問題來自美國銀行的Lei Zhang。

(foreign language) My question is about our video business. Can you give us some updates on this video business? And what is our production operation forecast for 2023?

（外語）我的問題是關於我們的視頻業務。你能給我們介紹一下這個視頻業務的最新情況嗎？我們對2023年的生產經營預測是什麼？

(foreign language)

（外語）

[Interpreted] In terms of our video business, in terms of the content production, in addition to our live streamers, we also have a lot of video content creators joining for us, and we have been able to accumulate large volume of original materials for video content processing.

[解讀]在我們的視頻業務方面，在內容製作方面，除了我們的主播之外，我們還有很多視頻內容創作者加入我們，我們已經能夠積累大量的原創素材視頻內容處理。

And in addition to conventional editing tools, we also have AI real-time editing function that can analyze the live stream content in real-time through AI recognition technology and automatically capture the highlights in the live streaming processes to generate video clips which can provide effective support for video production of competitive games and events, and help to improve the creation, efficiency and enthusiasm of the users and streamers.

而除了常規的剪輯工具，我們還有AI實時剪輯功能，可以通過AI識別技術實時分析直播內容，自動捕捉直播過程中的精彩片段生成視頻片段，提供有效的視頻剪輯。支持競技遊戲和賽事的視頻製作，幫助提升用戶和主播的創作、效率和積極性。

In the year of 2022, the number of video uploads on HUYA has increased by nearly 50%, enriching the content that are available in our platform.

2022年虎牙視頻上傳量增長近50%，豐富了虎牙平台內容。

(foreign language)

（外語）

[Interpreted] At the same time, as we continually optimize our video content ecosystem combined with immersive vertical screen viewing format, video content being embedded in the game community, our HUYA uses consumption of video content has also significantly increased.

【解讀】同時，隨著我們不斷優化我們的視頻內容生態系統，結合沉浸式豎屏觀看格式，視頻內容嵌入遊戲社區，我們的虎牙用戶對視頻內容的消費也顯著增加。

In the fourth quarter of last year, the penetration rate of video content on HUYA app reached a new high. At the same time, the total screen time on application increased by more than 40% year-on-year. So the development of our video business has promoted a community-based development of HUYA. And for an overall content ecosystem and HUYA, we believe that it will develop towards a pan-live broadcasting format and form an ecosystem for video consumption that will be further integrated with live broadcasting.

去年第四季度，虎牙APP視頻內容滲透率再創新高。同時，應用程序的總屏幕時間同比增長超過 40%。所以我們視頻業務的發展促進了虎牙社區化的發展。而對於一個整體的內容生態和虎牙，我們認為它會朝著泛直播的方向發展，形成一個與直播進一步融合的視頻消費生態。

This will also help to increase the attractiveness of the platform to users. And in the long run, it would help us to expand the channels to obtain users and increase revenue.

這也將有助於增加平台對用戶的吸引力。從長遠來看，這將有助於我們擴大獲取用戶的渠道並增加收入。

(foreign language)

（外語）

[Interpreted] And for the year of 2023, we will continue to promote product upgrades, consolidate the advantages of HUYA's core businesses and continue to promote video community. In addition, we'll also attach importance to upgrading our operation capability for a pan-live streaming full-link services for the streamers, events and game companies, utilize our expertise in new games in streaming, events and game companies to provide more value for the operation and promotion of the games so as to prepare ourselves for the growth of our game-related service revenue in the mid and long term.

【解讀】而2023年，我們將繼續推進產品升級，鞏固虎牙核心業務優勢，持續推進視頻社區。此外，我們也將重視提升對主播、賽事和遊戲公司的泛直播全鏈路服務的運營能力，利用我們在新遊戲方面的專長為直播、賽事和遊戲公司提供更多價值。為遊戲的運營和推廣做好準備，為中長期遊戲相關服務收入的增長做好準備。

Our next question comes from the line of Felix Liu from UBS.

我們的下一個問題來自瑞銀的 Felix Liu。

(foreign language) Let me translate myself. This is Daniel from UBS on behalf of Felix Liu. I have 2 questions today. First, could you please briefly tell us about the current competitive landscape in game live streaming sector? How would the competition impact the revenue sharing ratio and content cost? And my second question is, how is the margin outlook for 2023? Can we expect a sequential improvement on margins from last year?

（外語）讓我自己翻譯。我是來自瑞銀的 Daniel 代表 Felix Liu。我今天有兩個問題。首先，您能否簡單介紹一下目前遊戲直播領域的競爭格局？競爭將如何影響收入分成比例和內容成本？我的第二個問題是，2023 年的利潤率前景如何？我們能否預期利潤率會比去年有所改善？

(foreign language)

（外語）

[Interpreted] Thank you for this question. Our HUYA's market share is still relatively stable and we have maintained a dominant position in the field of games and live streaming of e-sports, especially in the core games. Overall, the market competition still exists, but the behavior of each platform is more rational than that of (inaudible). We believe that we have competitiveness lies in our more [physical] game user group and a more professional e-sports content ecosystem, which benefited from our mature content production system with stable supply of high-quality live content through (inaudible) as well as self-made content and also, we had close cooperation with the game companies.

[解釋]謝謝你提出這個問題。我們虎牙的市場份額還是比較穩定的，我們在遊戲和電競直播領域一直保持優勢地位，尤其是核心遊戲。總體來說，市場競爭還是存在的，但是各個平台的行為比（聽不清）更加理性。我們認為我們的競爭力在於我們更多的[實體]遊戲用戶群和更專業的電競內容生態系統，這得益於我們成熟的內容生產體系，通過（聽不清）以及自製內容的同時，我們與遊戲公司有著密切的合作。

(foreign language)

（外語）

[Interpreted] Covered the cost and profit trends. In terms of the commission sharing and contracting costs, while since the proportion of commission sharing increased in 2021, our proportion -- our sharing ratios have been relatively stable in 2022. And under the current market competition, we expect that this year's sharing ratio and signing cost trend will remain relatively stable and the future will depend on the market situation and updates, but there will probably be some room for adjustment.

[解讀]涵蓋了成本和利潤的趨勢。在佣金分攤和承包成本方面，雖然自 2021 年佣金分攤比例增加以來，我們的比例——我們的分攤比例在 2022 年一直相對穩定。在當前的市場競爭下，我們預計今年的分攤比例和簽約成本走勢將保持相對穩定，未來將取決於市場情況和更新，但可能會有一定的調整空間。

At the same time, based on the optimization of the cost of the tournament and championship as well as the optimization of the content cost, we expect that the gross profit rate of the whole year will increase compared with the year 2022 and the fluctuation on our gross margin between quarters will be smaller than that of 2022.

同時，基於賽事和冠軍賽成本的優化以及內容成本的優化，我們預計全年毛利率較2022年將有所提升，我們的毛利率將出現波動。季度之間的毛利率將低於 2022 年。

(foreign language)

（外語）

[Interpreted] In terms of operating expenses, we'll continue to strengthen our measures to improve the operational efficiency. Since the second quarter of 2022, we have started to strengthen the cost reduction and efficiency improvement measures and operating expenses have declined by double digits year-on-year for 3 consecutive quarters already. And in the year '23, we'll continue to maintain a strict budget control and consolidate the results of cost cutting. Reducing losses and improved profitability will be the focus of this year's finance work, and we hope that this will lay a good foundation for the subsequent return to growth and long-term profitability of our company.

[解讀]在運營費用方面，我們將繼續加強提高運營效率的措施。 2022年二季度開始，我們開始加強降本增效措施，營業費用已經連續三個季度同比下降兩位數。在 23 年，我們將繼續保持嚴格的預算控制並鞏固成本削減的成果。減少虧損，提高盈利能力，將是今年財務工作的重點，希望這能為公司後續的恢復增長和長期盈利打下良好的基礎。

As there are no further questions, now I'd like to turn the call back to the company for closing remarks.

由於沒有其他問題，現在我想將電話轉回公司以作結束語。

Thank you once again 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 the Piacente Group Investor Relations. Thank you.

再次感謝您今天加入我們。如果您還有其他問題，請隨時通過我們網站上提供的聯繫信息或 Piacente Group 投資者關係部聯繫虎牙投資者關係部。謝謝。

This concludes today's conference call. You may now disconnect your lines. Thank you.

今天的電話會議到此結束。您現在可以斷開線路。謝謝。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]