{"url_path":"/sec/huya/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 **EXHIBITS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-04-27","source_url":"https://www.sec.gov/Archives/edgar/data/1728190/0001104659-26-048944-index.html","accession_number":"0001104659-26-048944","cik":"0001728190","ticker":"HUYA","issuer_name":"HUYA Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1728190/0001104659-26-048944-index.html","primary_entity_key":"0001728190","primary_entity_name":"HUYA Inc."},"word_count":32632,"has_tables":true,"body_markdown":"**ITEM 19.**EXHIBITS\n\n​\n\n​\n\n​\n\n**Exhibit********Number**\n\n**  ​ ​ ​**\n\n**Description of Document**\n\n​\n\n​\n\n​\n\n1.1\n\n​\n\n[Fourth Amended and Restated Memorandum and Articles of Association of the registrant (incorporated by reference to Exhibit 99.2 to the current report on Form 6-K (File No. 001-38482) furnished with the Securities and Exchange Commission on May 15, 2020)](https://www.sec.gov/Archives/edgar/data/1728190/000119312520143270/d905652dex992.htm)\n\n​\n\n​\n\n​\n\n2.1\n\n​\n\n[Registrant’s Specimen American Depositary Receipt (incorporated herein by reference to Exhibit 4.1 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518146767/d494918dex43.htm)\n\n​\n\n​\n\n​\n\n2.2\n\n​\n\n[Registrant’s Specimen Certificate for Class A ordinary shares (incorporated herein by reference to Exhibit 4.2 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518146767/d494918dex42.htm)\n\n​\n\n​\n\n​\n\n2.3\n\n​\n\n[Deposit Agreement dated May 10, 2018, among the Registrant, the depositary and holder of the American Depositary Receipts (incorporated herein by reference to Exhibit 4.3 to the registration statement on Form S-8 (File No. 333-227336) filed with the Securities and Exchange Commission on September 14, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518273720/d622472dex43.htm)\n\n​\n\n​\n\n​\n\n2.4\n\n​\n\n[Description of Securities (incorporated by reference to Exhibit 2.4 to the annual report on Form 20 - F (File No. 001 - 38482), filed with the Securities and Exchange Commission on April 26, 2024)](https://www.sec.gov/Archives/edgar/data/1728190/000110465924052244/huya-20231231xex2d4.htm)\n\n​\n\n​\n\n​\n\n4.1\n\n​\n\n[The Amended and Restated 2021 Share Incentive Plan (incorporated herein by reference to Exhibit 99.1 to the Form 6-K (File No. 001-38482) furnished with the Securities and Exchange Commission on September 8, 2022)](https://www.sec.gov/Archives/edgar/data/1728190/000119312522241000/d378023dex991.htm)\n\n​\n\n​\n\n​\n\n4.2\n\n​\n\n[The Amended and Restated 2017 Plan (incorporated herein by reference to Exhibit 10.1 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518111659/d494918dex101.htm)\n\n​\n\n​\n\n​\n\n4.3\n\n​\n\n[2024 Share Incentive Plan (incorporated herein by reference to Exhibit 99.1 to the Form 6 - K (File No. 001 - 38482) furnished with the Securities and Exchange Commission on December 23, 2024)](https://www.sec.gov/Archives/edgar/data/1728190/000110465924131270/tm2431868d1_ex99-1.htm)\n\n​\n\n​\n\n​\n\n4.4\n\n​\n\n[Form of Indemnification Agreement between the Registrant and its directors and executive officers (incorporated herein by reference to Exhibit 10.3 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518111659/d494918dex103.htm)\n\n​\n\n​\n\n​\n\n4.5\n\n​\n\n[Form of Employment Agreement between the Registrant and its executive officers (incorporated herein by reference to Exhibit 10.2 to the registration statement on Form F-1 (File No. 333 224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518111659/d494918dex102.htm)\n\n​\n\n​\n\n​\n\n160\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n**Exhibit********Number**\n\n**  ​ ​ ​**\n\n**Description of Document**\n\n​\n\n​\n\n​\n\n4.6\n\n​\n\n[English translation of the Equity Interest Pledge agreement among Guangzhou Huya Technology Co., Ltd., Guangzhou Huya Information Technology Co., Ltd., and Linzhi Tencent Technology Co., Ltd. dated September 17, 2020 (incorporated by reference to Exhibit 10.1 to the registration statement on Form F-4 (File No. 333-250016) filed with the Securities and Exchange Commission on November 10, 2020)](https://www.sec.gov/Archives/edgar/data/1728190/000119312520290335/d83409dex101.htm)\n\n​\n\n​\n\n​\n\n4.7\n\n​\n\n[English translation of the Exclusive Business Cooperation Agreement between Guangzhou Huya Technology Co., Ltd. and Guangzhou Huya Information Technology Co., Ltd. dated September 17, 2020 (incorporated by reference to Exhibit 10.2 to the registration statement on Form F-4 (File No. 333-250016) filed with the Securities and Exchange Commission on November 10, 2020)](https://www.sec.gov/Archives/edgar/data/1728190/000119312520290335/d83409dex102.htm)\n\n​\n\n​\n\n​\n\n4.8\n\n​\n\n[English translation of the Shareholder Voting Rights Proxy Agreement among Guangzhou Huya Technology Co., Ltd., Guangzhou Huya Information Technology Co., Ltd., and Linzhi Tencent Technology Co., Ltd. dated September 17, 2020 (incorporated by reference to Exhibit 10.3 to the registration statement on Form F-4 (File No. 333-250016) filed with the Securities and Exchange Commission on November 10, 2020)](https://www.sec.gov/Archives/edgar/data/1728190/000119312520290335/d83409dex103.htm)\n\n​\n\n​\n\n​\n\n4.9\n\n​\n\n[English translation of the Exclusive Option Agreement among Guangzhou Huya Technology Co., Ltd., Guangzhou Huya Information Technology Co., Ltd., and Linzhi Tencent Technology Co., Ltd. dated September 17, 2020 (incorporated by reference to Exhibit 10.4 to the registration statement on Form F-4 (File No. 333-250016) filed with the Securities and Exchange Commission on November 10, 2020)](https://www.sec.gov/Archives/edgar/data/1728190/000119312520290335/d83409dex104.htm)\n\n​\n\n​\n\n​\n\n4.10\n\n​\n\n[English translation of Patent License Agreement between Guangzhou Huya and Guangzhou Huaduo dated December 31, 2016 (incorporated herein by reference to Exhibit 10.11 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518111659/d494918dex1011.htm)\n\n​\n\n​\n\n​\n\n4.11\n\n​\n\n[English translation of Business Cooperation Agreement between Guangzhou Huaduo and Guangzhou Huya dated March 8, 2018 (incorporated herein by reference to Exhibit 10.14 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518111659/d494918dex1014.htm)\n\n​\n\n​\n\n​\n\n4.12\n\n​\n\n[English translation of Business Cooperation Agreement between Shenzhen Tencent Computer Systems Company Ltd. and Guangzhou Huya dated February 5, 2018 (incorporated herein by reference to Exhibit 10.15 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518111659/d494918dex1015.htm)\n\n​\n\n​\n\n​\n\n4.13\n\n​\n\n[Registration Rights Agreement by and between HUYA Inc. and JOYY Inc. dated April 3, 2020 (incorporated by reference to Exhibit 4.14 to the annual report on Form 20-F (File No. 001-38482), filed with the Securities and Exchange Commission on April 27, 2020)](https://www.sec.gov/Archives/edgar/data/1728190/000119312520120245/d832720dex414.htm)\n\n​\n\n​\n\n​\n\n4.14\n\n​\n\n[Written Acknowledgment to Registration Rights Agreement executed by Linen Investment Limited dated April 3, 2020 (incorporated by reference to Exhibit 4.15 to the annual report on Form 20-F (File No. 001-38482), filed with the Securities and Exchange Commission on April 27, 2020)](https://www.sec.gov/Archives/edgar/data/1728190/000119312520120245/d832720dex415.htm)\n\n​\n\n​\n\n​\n\n4.15†\n\n​\n\n[English translation of License Agreement for Broadcasting League of Legends Matches between Tengjing Sports & Culture Development (Shanghai) Co., Ltd. and Guangzhou Huya dated April 27, 2021 (incorporated by reference to Exhibit 4.17 to the annual report on Form 20-F (File No. 001-38482), filed with the Securities and Exchange Commission on April 27, 2021)](https://www.sec.gov/Archives/edgar/data/1728190/000119312521134324/d88387dex417.htm)\n\n​\n\n​\n\n​\n\n4.16†\n\n​\n\n[English translation of Supplemental Agreement to the License Agreement for Broadcasting League of Legends Matches between Tengjing Sports & Culture Development (Shanghai) Co., Ltd. and Guangzhou Huya dated January 12, 2023 (incorporated by reference to Exhibit 4.16 to the annual report on Form 20-F (File No. 001-38482), filed with the Securities and Exchange Commission on April 26, 2023)](https://www.sec.gov/Archives/edgar/data/1728190/000119312523116470/d399292dex416.htm)\n\n​\n\n​\n\n​\n\n161\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n**Exhibit********Number**\n\n**  ​ ​ ​**\n\n**Description of Document**\n\n​\n\n​\n\n​\n\n4.17\n\n​\n\n[English translation of Second Supplemental Agreement to the License Agreement for Broadcasting League of Legends Matches between Tengjing Sports & Culture Development (Shanghai) Co., Ltd. and Guangzhou Huya dated September 27, 2024 (incorporated by reference to Exhibit 4.17 to the annual report on Form 20 - F (File No. 001 - 38482), filed with the Securities and Exchange Commission on April 17, 2025)](https://www.sec.gov/Archives/edgar/data/1728190/000141057825000781/huya-20241231xex4d17.htm)\n\n​\n\n​\n\n​\n\n8.1*\n\n​\n\n[List of significant subsidiaries and variable interest entity of the Registrant](huya-20251231xex8d1.htm)\n\n​\n\n​\n\n​\n\n11.1\n\n​\n\n[Code of Business Conduct and Ethics of the Registrant (incorporated herein by reference to Exhibit 99.1 to the registration statement on Form F-1 (File No. 333-224202), as amended, initially filed with the Securities and Exchange Commission on April 9, 2018)](https://www.sec.gov/Archives/edgar/data/1728190/000119312518146767/d494918dex991.htm)\n\n​\n\n​\n\n​\n\n11.2\n\n​\n\n[Amended and Restated Statement of Policies Governing Material Non-Public Information and the Prevention of Insider Trading of the Registrant (incorporated by reference to Exhibit 11.2 to the annual report on Form 20 - F (File No. 001 - 38482), filed with the Securities and Exchange Commission on April 17, 2025)](https://www.sec.gov/Archives/edgar/data/1728190/000141057825000781/huya-20241231xex11d2.htm)\n\n​\n\n​\n\n​\n\n12.1*\n\n​\n\n[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](huya-20251231xex12d1.htm)\n\n​\n\n​\n\n​\n\n12.2*\n\n​\n\n[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](huya-20251231xex12d2.htm)\n\n​\n\n​\n\n​\n\n13.1**\n\n​\n\n[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](huya-20251231xex13d1.htm)\n\n​\n\n​\n\n​\n\n13.2**\n\n​\n\n[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](huya-20251231xex13d2.htm)\n\n​\n\n​\n\n​\n\n15.1*\n\n​\n\n[Consent of Maples and Calder (Hong Kong) LLP](huya-20251231xex15d1.htm)\n\n​\n\n​\n\n​\n\n15.2*\n\n​\n\n[Consent of Commerce & Finance Law Offices](huya-20251231xex15d2.htm)\n\n​\n\n​\n\n​\n\n15.3*\n\n​\n\n[Consent of PricewaterhouseCoopers Zhong Tian LLP, Independent Registered Public Accounting Firm](huya-20251231xex15d3.htm)\n\n​\n\n​\n\n​\n\n97.1\n\n​\n\n[Clawback Policy of the Registrant (incorporated by reference to Exhibit 97.1 to the annual report on Form 20 - F (File No. 001 - 38482), filed with the Securities and Exchange Commission on April 26, 2024)](https://www.sec.gov/Archives/edgar/data/1728190/000110465924052244/huya-20231231xex97d1.htm)\n\n​\n\n​\n\n​\n\n101.INS*\n\n​\n\nInline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document\n\n​\n\n​\n\n​\n\n101.SCH*\n\n​\n\nInline XBRL Taxonomy Extension Schema Document\n\n​\n\n​\n\n​\n\n101.CAL*\n\n​\n\nInline XBRL Taxonomy Extension Calculation Linkbase Document\n\n​\n\n​\n\n​\n\n101.DEF*\n\n​\n\nInline XBRL Taxonomy Extension Definition Linkbase Document\n\n​\n\n​\n\n​\n\n101.LAB*\n\n​\n\nInline XBRL Taxonomy Extension Label Linkbase Document\n\n​\n\n​\n\n​\n\n101.PRE*\n\n​\n\nInline XBRL Taxonomy Extension Presentation Linkbase Document\n\n​\n\n​\n\n​\n\n104*\n\n​\n\nCover Page Interactive Data File — the cover page XBRL tags are embedded within the Exhibit 101 Inline XBRL document set\n\n*\n\nFiled herewith.\n\n**\n\nFurnished herewith.\n\n†\n\nPortions of this exhibit have been omitted pursuant to Rule 406 under the Securities Act.\n\n162\n\n[Table of Contents](#TOC)\n\nSIGNATURES\n\nThe registrant hereby certifies that it meets all of the requirements for filing its annual report on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.\n\n​\n\nHUYA Inc.\n\n​\n\n​\n\n​\n\nBy:\n\n/s/ Junhong Huang\n\n​\n\n​\n\nName:\n\nJunhong Huang\n\n​\n\n​\n\nTitle:\n\nDirector and Acting Chief Executive Officer\n\n​\n\nDate: April 27, 2026\n\n​\n\n​\n\n​\n\n163\n\n[Table of Contents](#TOC)\n\nHUYA INC.\n\nINDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS\n\n​\n\n**Contents**\n\n**Page**\n\n​\n\n​\n\n[Report of Independent Registered Public Accounting Firm](#ReportofIndependentRegisteredPublicAccou) (PCAOB ID 1424)\n\nF-2\n\n​\n\n​\n\n**Consolidated Financial Statements:**\n\n​\n\n​\n\n​\n\n[Consolidated Balance Sheets as of December 31, 2024 and 2025](#CONSOLIDATEDBALANCESHEETSASOFDECEMBER312)\n\nF-5\n\n​\n\n​\n\n[Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023, 2024 and 2025](#CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINC)\n\nF-7\n\n​\n\n​\n\n[Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2023, 2024 and 2025](#CONSOLIDATEDSTATEMENTSOFCHANGESINSHAREHO)\n\nF-9\n\n​\n\n​\n\n[Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2024 and 2025](#CONSOLIDATEDSTATEMENTSOFCASHFLOWSFORTHEY)\n\nF-12\n\n​\n\n​\n\n[Notes to the Consolidated Financial Statements](#Notes)\n\nF-14\n\n​\n\n​\n\n​\n\n​\n\nF - 1\n\n[Table of Contents](#TOC)\n\n**Report of Independent Registered Public Accounting Firm**\n\nTo the Board of Directors and Shareholders of HUYA Inc.\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\nWe have audited the accompanying consolidated balance sheets of HUYA Inc. and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.\n\nBasis for Opinions\n\nThe Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nF - 2\n\n[Table of Contents](#TOC)\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nCritical Audit Matters\n\nThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.\n\n*Revenue recognition — identification of distinct performance obligations and estimate of standalone selling price*\n\nAs described in Note 2(q) to the consolidated financial statements, the Company’s sources of revenue include live streaming and other revenues. The Company’s consolidated revenues were RMB6,502 million for the year ended December 31, 2025, of which RMB4,594 million were revenues derived from live streaming. Management identifies multiple distinct performance obligations in certain contracts of its live streaming business. Customers receive a series of services, virtual items and virtual rights by entering into certain contracts with the Company. Management determines the distinct performance obligations and standalone selling price of each identified distinct performance obligation and recognizes revenue when a customer obtains control of the promised goods or services in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.\n\nThe principal considerations for our determination that performing procedures relating to the identification of performance obligations and estimate of standalone selling price is a critical audit matter are the significant judgment made by management in identifying the distinct performance obligations and estimating the standalone selling price of each distinct performance obligation due to the complexity of the contracts. Certain services are provided to customers over time and have the same pattern of transfer to customers. Management exercises judgement in determining the number of distinct performance obligations by accounting for services that have the same pattern of transfer to customers as a single performance obligation. Certain distinct performance obligations are not separately sold by the Company that management is required to exercise judgement in determining the standalone selling price of each of these distinct performance obligations. This in turn led to significant auditor subjectivity and effort in performing procedures and in evaluating management’s significant judgment exercised in determining whether the distinct performance obligations were appropriately identified; and whether the standalone selling price of each distinct performance obligation was appropriately estimated.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included understanding and testing the effectiveness of controls relating to the revenue recognition process, including controls over management’s identification of distinct performance obligations and estimation of standalone selling prices used to allocate transaction price to distinct performance obligations in its contracts with customers. These procedures also included, among others, on a sample basis: (i) testing the completeness and accuracy of management’s identification of the distinct performance obligations by evaluating the customer arrangements; (ii) testing management’s process for estimating standalone selling price which included testing the completeness and accuracy of input data used, and evaluating the reasonableness of significant assumptions used by management, related to principally users’ expected spending and renewal patterns based on historical data and other observable inputs such as historical pricing strategies; and (iii) testing management’s process for determining the appropriate amount and timing of revenue recognition based on the respective performance obligations identified in the relevant revenue contracts.\n\nF - 3\n\n[Table of Contents](#TOC)\n\n*Goodwill impairment assessment*\n\nAs described in Notes 2(o) and 10 to the consolidated financial statements, the Company’s goodwill balance was RMB453 million as of December 31, 2025, which arose from the acquired global mobile application service provider. Management conducts a goodwill impairment test at the reporting unit level annually in the fourth quarter, or more frequently when events or circumstances occur indicating that the recorded goodwill may be impaired. The Company compares the fair value of the reporting unit with its carrying amount, with an impairment charge recorded for the amount by which the carrying amount of the reporting unit exceeds its fair value up to a maximum amount of the goodwill balance for the reporting unit. The Company estimated the fair value of the reporting unit based on the income approach. Under the income approach, the fair value of the reporting unit is derived from the present value of long-term cash flows that the reporting unit is expected to generate. The estimated cash flow projections were developed based on management’s estimates which include significant judgments and assumptions relating to the revenue growth rate, the gross profit ratio, and the discount rate. The Company supplemented the income approach with the use of a market-based method, which considers EBITDA multiples based on market data of comparable companies engaged in similar operations and economic characteristics. Based on the result, management concluded that the fair value of the reporting unit was determined to exceed its carrying value as of December 31, 2025.\n\nThe principal considerations for our determination that performing procedures relating to the goodwill impairment assessment of the reporting unit is a critical audit matter are (i) the significant judgements made by management when developing the fair value of the reporting unit; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to the revenue growth rate, the gross profit ratio and the discount rate for the reporting unit; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment, including controls over the valuation of the Company’s reporting unit. These procedures also included, among others (i) testing management’s process for developing the fair value estimates; (ii) evaluating the appropriateness of the valuation models used in management’s impairment assessments; (iii) testing the completeness, accuracy and relevance of the underlying data used in the valuation models in estimating the fair value of the reporting unit; and (iv) evaluating the reasonableness of the significant assumptions used by management in the income approach related to the revenue growth rate, the gross profit ratio and the discount rate. Evaluation of management’s assumptions related to the revenue growth rate and the gross profit ratio involved consideration of (i) the current and past performance of the reporting unit; (ii) the consistency with relevant industry forecasts and market developments; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in the evaluation of management’s valuation model and the applied discount rate.\n\n/s/ PricewaterhouseCoopers Zhong Tian LLP\n\nShenzhen, the People’s Republic of China\n\nApril 27, 2026\n\n​\n\nWe have served as the Company’s auditor since 2017.\n\n​\n\nF - 4\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2025\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n​\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2025**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Note 2(f))\n\n**Assets**\n\n  ​ ​ ​\n\n​\n\n  ​ ​ ​\n\n​\n\n  ​ ​ ​\n\n​\n\n**Current assets**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\nCash and cash equivalents\n\n \n\n1,188,911\n\n \n\n692,663\n\n​\n\n99,049\n\nRestricted cash\n\n \n\n17,031\n\n \n\n12,031\n\n​\n\n1,720\n\nShort-term deposits\n\n \n\n4,075,048\n\n \n\n3,125,760\n\n​\n\n446,978\n\nAccounts receivable, net\n\n \n\n76,044\n\n \n\n238,569\n\n​\n\n34,115\n\nPrepaid assets and amounts due from related parties, net\n\n \n\n207,565\n\n \n\n290,747\n\n​\n\n41,576\n\nPrepayments and other current assets, net\n\n \n\n523,674\n\n \n\n547,078\n\n​\n\n78,232\n\n**Total current assets**\n\n \n\n6,088,273\n\n​\n\n4,906,848\n\n​\n\n701,670\n\n**Non-current assets**\n\n \n\n  ​\n\n \n\n​\n\n \n\n  ​\n\nLong-term deposits\n\n \n\n1,470,000\n\n​\n\n—\n\n​\n\n—\n\nInvestments\n\n \n\n440,790\n\n​\n\n296,165\n\n​\n\n42,351\n\nGoodwill\n\n​\n\n463,796\n\n​\n\n453,498\n\n​\n\n64,849\n\nProperty and equipment, net\n\n \n\n484,008\n\n​\n\n604,368\n\n​\n\n86,423\n\nIntangible assets, net\n\n \n\n153,190\n\n​\n\n127,633\n\n​\n\n18,251\n\nRight-of-use assets, net\n\n \n\n339,492\n\n​\n\n304,017\n\n​\n\n43,474\n\nPrepayments and other non-current assets\n\n \n\n128,262\n\n​\n\n8,843\n\n​\n\n1,265\n\n**Total non-current assets**\n\n \n\n3,479,538\n\n​\n\n1,794,524\n\n​\n\n256,613\n\n**Total assets**\n\n \n\n9,567,811\n\n​\n\n6,701,372\n\n​\n\n958,283\n\n**Liabilities and shareholders’ equity**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n**Current liabilities (including amounts of the consolidated variable interest entity and its subsidiaries (“VIEs”) without recourse to the Company of RMB****884,541****and RMB****719,725****as of December 31, 2024 and 2025, respectively)**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\nAccounts payable\n\n \n\n66,613\n\n​\n\n237,903\n\n​\n\n34,020\n\nAdvances from customers and deferred revenue\n\n \n\n265,628\n\n​\n\n228,167\n\n​\n\n32,627\n\nIncome taxes payable\n\n \n\n54,594\n\n​\n\n61,479\n\n​\n\n8,791\n\nAccrued liabilities and other current liabilities\n\n \n\n1,360,949\n\n​\n\n1,032,437\n\n​\n\n147,637\n\nAmounts due to related parties\n\n \n\n161,529\n\n​\n\n150,166\n\n​\n\n21,473\n\nLease liabilities due within one year\n\n \n\n28,581\n\n​\n\n18,982\n\n​\n\n2,714\n\n**Total current liabilities**\n\n \n\n1,937,894\n\n​\n\n1,729,134\n\n​\n\n247,262\n\n**Non-current liabilities (including amounts of the consolidated VIEs without recourse to the Company of RMB****42,431****and RMB****32,364****as of December 31, 2024 and 2025, respectively)**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\nLease liabilities\n\n \n\n20,047\n\n​\n\n1,766\n\n​\n\n253\n\nDeferred tax liabilities\n\n \n\n23,405\n\n​\n\n18,932\n\n​\n\n2,707\n\nDeferred revenue\n\n \n\n35,786\n\n​\n\n31,824\n\n​\n\n4,551\n\n**Total non-current liabilities**\n\n \n\n79,238\n\n​\n\n52,522\n\n​\n\n7,511\n\n**Total liabilities**\n\n \n\n2,017,132\n\n​\n\n1,781,656\n\n​\n\n254,773\n\n**Commitments and contingencies (Note 25)**\n\n \n\n​\n\n​\n\n​\n\n \n\n  ​\n\n​\n\n​\n\nF - 5\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2025 (CONTINUED)\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n​\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2025**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Note 2(f))\n\n**Shareholders’ equity**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nClass A ordinary shares (US$0.0001 par value; 750,000,000 shares authorized as of December 31, 2024 and December 31, 2025, respectively; 74,845,398 and 73,146,779 shares issued and outstanding as of December 31, 2024 and December 31, 2025, respectively)\n\n​\n\n52\n\n​\n\n54\n\n​\n\n8\n\nClass B ordinary shares (US$0.0001 par value; 200,000,000 shares authorized as of December 31, 2024 and December 31, 2025, respectively; 150,386,517 and 150,386,517 shares issued and outstanding as of December 31, 2024 and December 31, 2025, respectively)\n\n​\n\n98\n\n​\n\n98\n\n​\n\n14\n\nTreasury shares\n\n​\n\n(108,101)\n\n​\n\n(128,056)\n\n​\n\n(18,312)\n\nAdditional paid-in capital\n\n​\n\n8,866,492\n\n​\n\n6,466,101\n\n​\n\n924,640\n\nStatutory reserves\n\n​\n\n122,429\n\n​\n\n122,429\n\n​\n\n17,507\n\nAccumulated deficit\n\n​\n\n(2,100,291)\n\n​\n\n(2,219,365)\n\n​\n\n(317,365)\n\nAccumulated other comprehensive income\n\n​\n\n770,000\n\n​\n\n678,455\n\n​\n\n97,018\n\n**Total shareholders’ equity**\n\n​\n\n7,550,679\n\n​\n\n4,919,716\n\n​\n\n703,510\n\n**Total liabilities and shareholders’ equity**\n\n​\n\n9,567,811\n\n​\n\n6,701,372\n\n​\n\n958,283\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\nF - 6\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\nFOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n​\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n**  ​ ​ ​**\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Note 2(f))\n\nNet revenues (including transactions with related parties of RMB142,746, RMB669,070 and RMB486,718 for the years ended December 31, 2023, 2024 and 2025, respectively)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLive streaming\n\n \n\n6,450,782\n\n​\n\n4,745,195\n\n​\n\n4,594,014\n\n​\n\n656,935\n\nGame-related services, advertising and others\n\n \n\n543,546\n\n​\n\n1,333,920\n\n​\n\n1,908,386\n\n​\n\n272,896\n\n**Total net revenues**\n\n \n\n6,994,328\n\n​\n\n6,079,115\n\n​\n\n6,502,400\n\n​\n\n929,831\n\nCost of revenues (1) (including transactions with related parties of RMB421,567, RMB358,613 and RMB460,683 for the years ended December 31, 2023, 2024 and 2025, respectively)\n\n \n\n(6,179,125)\n\n​\n\n(5,269,661)\n\n​\n\n(5,630,267)\n\n​\n\n(805,117)\n\n**Gross Profit**\n\n \n\n815,203\n\n​\n\n809,454\n\n​\n\n872,133\n\n​\n\n124,714\n\n**Operating expenses**(1)\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n​\n\n \n\n​\n\nResearch and development expenses (including transactions with related parties of RMB4,345, RMB1,861 and RMB1,049 for the years ended December 31, 2023, 2024 and 2025, respectively)\n\n \n\n(578,610)\n\n​\n\n(512,637)\n\n​\n\n(496,677)\n\n​\n\n(71,024)\n\nSales and marketing expenses (including transactions with related parties of RMB62,889, RMB3,533 and RMB13,014 for the years ended December 31, 2023, 2024 and 2025, respectively)\n\n \n\n(440,605)\n\n​\n\n(274,049)\n\n​\n\n(266,567)\n\n​\n\n(38,119)\n\nGeneral and administrative expenses (including transactions with related parties of RMB350, RMB3,478 and RMB3,603 for the years ended December 31, 2023, 2024 and 2025, respectively)\n\n \n\n(320,838)\n\n​\n\n(254,840)\n\n​\n\n(308,875)\n\n​\n\n(44,169)\n\n**Total operating expenses**\n\n \n\n(1,340,053)\n\n​\n\n(1,041,526)\n\n​\n\n(1,072,119)\n\n​\n\n(153,312)\n\nOther income, net\n\n \n\n81,258\n\n​\n\n42,496\n\n​\n\n37,481\n\n​\n\n5,360\n\n**Operating loss**\n\n \n\n(443,592)\n\n​\n\n(189,576)\n\n​\n\n(162,505)\n\n​\n\n(23,238)\n\nImpairment loss of investments\n\n \n\n(225,800)\n\n​\n\n(232,466)\n\n​\n\n(120,156)\n\n​\n\n(17,182)\n\nInterest income and short-term investments income\n\n \n\n479,681\n\n​\n\n391,389\n\n​\n\n190,789\n\n​\n\n27,282\n\nDisposal gain of investments\n\n​\n\n—\n\n​\n\n—\n\n​\n\n1,500\n\n​\n\n214\n\nForeign currency exchange losses, net\n\n \n\n(1,593)\n\n​\n\n(3,802)\n\n​\n\n(6,718)\n\n​\n\n(961)\n\n**Loss before income tax expenses**\n\n \n\n(191,304)\n\n​\n\n(34,455)\n\n​\n\n(97,090)\n\n​\n\n(13,885)\n\nIncome tax expenses\n\n \n\n(13,215)\n\n​\n\n(13,500)\n\n​\n\n(12,806)\n\n​\n\n(1,831)\n\n**Loss before share of loss in equity method investments, net of income taxes**\n\n \n\n(204,519)\n\n​\n\n(47,955)\n\n​\n\n(109,896)\n\n​\n\n(15,716)\n\nShare of loss in equity method investments, net of income taxes\n\n \n\n—\n\n​\n\n—\n\n​\n\n(2,695)\n\n​\n\n(385)\n\n**Net loss attributable to HUYA Inc.**\n\n \n\n(204,519)\n\n​\n\n(47,955)\n\n​\n\n(112,591)\n\n​\n\n(16,101)\n\n**Net loss attributable to ordinary shareholders**\n\n \n\n(204,519)\n\n​\n\n(47,955)\n\n​\n\n(112,591)\n\n​\n\n(16,101)\n\n**Net loss**\n\n \n\n(204,519)\n\n​\n\n(47,955)\n\n​\n\n(112,591)\n\n​\n\n(16,101)\n\nOther comprehensive income (loss):\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\nForeign currency translation adjustments, net of nil tax\n\n \n\n143,329\n\n​\n\n73,372\n\n​\n\n(47,999)\n\n​\n\n(6,864)\n\nUnrealized securities holding loss, net of tax\n\n \n\n(20,824)\n\n​\n\n(63,964)\n\n​\n\n(43,546)\n\n​\n\n(6,227)\n\n**Total comprehensive loss attributable to HUYA Inc.**\n\n \n\n(82,014)\n\n​\n\n(38,547)\n\n​\n\n(204,136)\n\n​\n\n(29,192)\n\n​\n\n​\n\nF - 7\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\nFOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025 (CONTINUED)\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Note 2(f))\n\n**Net loss per ADS***\n\n​\n\n  ​\n\n​\n\n  ​\n\n​\n\n  ​\n\n​\n\n  ​\n\n—Basic\n\n \n\n(0.84)\n\n​\n\n(0.21)\n\n​\n\n(0.49)\n\n​\n\n(0.07)\n\n—Diluted\n\n \n\n(0.84)\n\n​\n\n(0.21)\n\n​\n\n(0.49)\n\n​\n\n(0.07)\n\nWeighted average number of ADSs used in calculating net loss per ADS\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n​\n\n \n\n​\n\n—Basic\n\n \n\n243,025,428\n\n​\n\n231,533,388\n\n​\n\n228,840,636\n\n​\n\n228,840,636\n\n—Diluted\n\n \n\n243,025,428\n\n​\n\n231,533,388\n\n​\n\n228,840,636\n\n​\n\n228,840,636\n\n**Net loss per ordinary share***\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n​\n\n \n\n​\n\n—Basic\n\n \n\n(0.84)\n\n​\n\n(0.21)\n\n​\n\n(0.49)\n\n​\n\n(0.07)\n\n—Diluted\n\n \n\n(0.84)\n\n​\n\n(0.21)\n\n​\n\n(0.49)\n\n​\n\n(0.07)\n\nWeighted average number of ordinary shares used in calculating net loss per ordinary share\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n​\n\n \n\n​\n\n—Basic\n\n \n\n243,025,428\n\n​\n\n231,533,388\n\n​\n\n228,840,636\n\n​\n\n228,840,636\n\n—Diluted\n\n \n\n243,025,428\n\n​\n\n231,533,388\n\n​\n\n228,840,636\n\n​\n\n228,840,636\n\n*\n\nEach ADS represents one Class A ordinary share.\n\n(1)\n\nShare-based compensation was allocated in cost of revenues and operating expenses as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n​\n\n**2023**\n\n​\n\n**2024**\n\n​\n\n**2025**\n\n​\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n**  ​ ​**\n\n​\n\n**  ​ ​**\n\n​\n\n**  ​ ​**\n\n​\n\n**  ​ ​**\n\n(Note 2(f))\n\nCost of revenues\n\n \n\n16,137\n\n​\n\n15,566\n\n​\n\n12,091\n\n​\n\n1,729\n\nResearch and development expenses\n\n \n\n40,679\n\n​\n\n27,269\n\n​\n\n22,772\n\n​\n\n3,256\n\nSales and marketing expenses\n\n \n\n2,842\n\n​\n\n1,147\n\n​\n\n1,141\n\n​\n\n163\n\nGeneral and administrative expenses\n\n \n\n18,607\n\n​\n\n20,538\n\n​\n\n37,588\n\n​\n\n5,375\n\n​\n\n \n\n78,265\n\n​\n\n64,520\n\n​\n\n73,592\n\n​\n\n10,523\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\nF - 8\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\n\nFOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Additional**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**other**\n\n​\n\n**Total**\n\n​\n\n​\n\n**Class A ordinary shares**\n\n​\n\n**Class B ordinary shares**\n\n​\n\n**Treasury shares**\n\n​\n\n**paid-in**\n\n​\n\n**Statutory**\n\n​\n\n**Accumulated**\n\n​\n\n**comprehensive**\n\n​\n\n**shareholders’**\n\n​\n\n  ​ ​ ​\n\n**Shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**Shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**capital**\n\n  ​ ​ ​\n\n**reserves**\n\n  ​ ​ ​\n\n**deficit**\n\n  ​ ​ ​\n\n**income (loss)**\n\n  ​ ​ ​\n\n**equity**\n\n​\n\n​\n\n​\n\n \n\nRMB\n\n​\n\n​\n\n \n\nRMB\n\n​\n\n​\n\n​\n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n**Balance as of December 31, 2022***\n\n  ​ ​ ​\n\n89,401,484\n\n​\n\n60\n\n​\n\n150,386,517\n\n​\n\n98\n\n​\n\n—\n\n​\n\n—\n\n​\n\n12,496,534\n\n​\n\n122,429\n\n​\n\n(1,847,817)\n\n​\n\n638,087\n\n​\n\n11,409,391\n\nAcquisition of entity under common control\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(574,826)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(574,826)\n\nShare-based compensation\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n78,265\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n78,265\n\nIssuance of ordinary shares for exercised share options\n\n​\n\n7,000\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n127\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n127\n\nIssuance of ordinary shares for restricted share units\n\n \n\n2,447,365\n\n​\n\n1\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n1\n\nRepurchase of shares\n\n​\n\n(9,158,997)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n9,158,997\n\n​\n\n(206,345)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(206,345)\n\nNet loss\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(204,519)\n\n​\n\n—\n\n​\n\n(204,519)\n\nUnrealized securities holding losses\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(20,824)\n\n​\n\n(20,824)\n\nForeign currency translation adjustment, net of nil tax\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n143,329\n\n​\n\n143,329\n\n**Balance as of December 31, 2023**\n\n \n\n82,696,852\n\n​\n\n61\n\n​\n\n150,386,517\n\n​\n\n98\n\n​\n\n9,158,997\n\n​\n\n(206,345)\n\n​\n\n12,000,100\n\n​\n\n122,429\n\n​\n\n(2,052,336)\n\n​\n\n760,592\n\n​\n\n10,624,599\n\n*\n\nHUYA Inc. consolidated 2022 statement of changes in shareholders’ equity has been retrospectively adjusted due to the business combination under common control as discussed in the Note 2 (d).\n\n​\n\nF - 9\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\n\nFOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025 (CONTINUED)\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Additional**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**other**\n\n​\n\n**Total**\n\n​\n\n​\n\n**Class A ordinary shares**\n\n​\n\n**Class B ordinary shares**\n\n​\n\n**Treasury shares**\n\n​\n\n**paid-in**\n\n​\n\n**Statutory**\n\n​\n\n**Accumulated**\n\n​\n\n**comprehensive**\n\n​\n\n**shareholders’**\n\n​\n\n  ​ ​ ​\n\n**Shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**Shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**capital**\n\n  ​ ​ ​\n\n**reserves**\n\n  ​ ​ ​\n\n**deficit**\n\n  ​ ​ ​\n\n**income (loss)**\n\n  ​ ​ ​\n\n**equity**\n\n​\n\n​\n\n​\n\n \n\nRMB\n\n​\n\n​\n\n \n\nRMB\n\n \n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n**Balance as of December 31, 2023**\n\n  ​ ​ ​\n\n82,696,852\n\n​\n\n61\n\n​\n\n150,386,517\n\n​\n\n98\n\n​\n\n9,158,997\n\n​\n\n(206,345)\n\n​\n\n12,000,100\n\n​\n\n122,429\n\n​\n\n(2,052,336)\n\n​\n\n760,592\n\n​\n\n10,624,599\n\nShare-based compensation\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n64,520\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n64,520\n\nIssuance of ordinary shares for exercised share options\n\n \n\n37,502\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n680\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n680\n\nIssuance of ordinary shares for restricted share units\n\n \n\n2,005,774\n\n​\n\n2\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n2\n\nRepurchase and cancellation of shares\n\n​\n\n(9,894,730)\n\n​\n\n(11)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(5,297,770)\n\n​\n\n98,244\n\n​\n\n(346,565)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(248,332)\n\nNet loss\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(47,955)\n\n​\n\n—\n\n​\n\n(47,955)\n\nUnrealized securities holding losses\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(63,964)\n\n​\n\n(63,964)\n\nForeign currency translation adjustment, net of nil tax\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n73,372\n\n​\n\n73,372\n\nDividends payable\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(2,852,243)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(2,852,243)\n\n**Balance as of December 31, 2024**\n\n \n\n74,845,398\n\n​\n\n52\n\n​\n\n150,386,517\n\n​\n\n98\n\n​\n\n3,861,227\n\n​\n\n(108,101)\n\n​\n\n8,866,492\n\n​\n\n122,429\n\n​\n\n(2,100,291)\n\n​\n\n770,000\n\n​\n\n7,550,679\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\nF - 10\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\n\nFOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025 (CONTINUED)\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Additional**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**other**\n\n​\n\n**Total**\n\n​\n\n​\n\n**Class A ordinary shares**\n\n​\n\n**Class B ordinary shares**\n\n​\n\n**Treasury shares**\n\n​\n\n**paid-in**\n\n​\n\n**Statutory**\n\n​\n\n**Accumulated**\n\n​\n\n**comprehensive**\n\n​\n\n**shareholders’**\n\n​\n\n  ​ ​ ​\n\n**Shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**Shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**shares**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**capital**\n\n  ​ ​ ​\n\n**reserves**\n\n  ​ ​ ​\n\n**deficit**\n\n  ​ ​ ​\n\n**income (loss)**\n\n  ​ ​ ​\n\n**equity**\n\n​\n\n​\n\n​\n\n \n\nRMB\n\n​\n\n​\n\n \n\nRMB\n\n \n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n \n\nRMB\n\n**Balance as of December 31, 2024**\n\n  ​ ​ ​\n\n74,845,398\n\n​\n\n52\n\n​\n\n150,386,517\n\n​\n\n98\n\n​\n\n3,861,227\n\n​\n\n(108,101)\n\n​\n\n8,866,492\n\n​\n\n122,429\n\n​\n\n(2,100,291)\n\n​\n\n770,000\n\n​\n\n7,550,679\n\nShare-based compensation\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n73,592\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n73,592\n\nTreasury shares reissuance for vested share-based awards\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(2,619,966)\n\n​\n\n66,025\n\n​\n\n(59,542)\n\n​\n\n—\n\n​\n\n(6,483)\n\n​\n\n—\n\n​\n\n—\n\nIssuance of ordinary shares for restricted share units\n\n \n\n2,151,869\n\n​\n\n2\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n2\n\nRepurchase of shares\n\n \n\n(3,850,488)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n3,850,488\n\n​\n\n(85,980)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(85,980)\n\nNet loss\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(112,591)\n\n​\n\n—\n\n​\n\n(112,591)\n\nUnrealized securities holding losses\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(43,546)\n\n​\n\n(43,546)\n\nForeign currency translation adjustment, net of nil tax\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(47,999)\n\n​\n\n(47,999)\n\nDividends payable\n\n \n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(2,414,441)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(2,414,441)\n\n**Balance as of December 31, 2025**\n\n \n\n73,146,779\n\n​\n\n54\n\n​\n\n150,386,517\n\n​\n\n98\n\n​\n\n5,091,749\n\n​\n\n(128,056)\n\n​\n\n6,466,101\n\n​\n\n122,429\n\n​\n\n(2,219,365)\n\n​\n\n678,455\n\n​\n\n4,919,716\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\nF - 11\n\n[Table of Contents](#TOC)\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Note 2(f))\n\n**Cash flows from operating activities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet loss attributable to HUYA Inc.\n\n \n\n(204,519)\n\n​\n\n(47,955)\n\n​\n\n(112,591)\n\n​\n\n(16,101)\n\nAdjustments to reconcile net loss to net cash (used in) provided by operating activities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDepreciation of property and equipment\n\n \n\n46,803\n\n​\n\n39,945\n\n​\n\n35,475\n\n​\n\n5,073\n\nAmortization of acquired intangible assets\n\n \n\n54,320\n\n​\n\n36,555\n\n​\n\n39,545\n\n​\n\n5,655\n\nAmortization of right-of-use assets\n\n \n\n39,277\n\n​\n\n37,461\n\n​\n\n33,016\n\n​\n\n4,721\n\nAllowance (Reversal of) for expected credit losses\n\n \n\n13,394\n\n​\n\n(5,797)\n\n​\n\n67,832\n\n​\n\n9,700\n\nGains on disposal of property and equipment and other long-term assets\n\n \n\n(594)\n\n​\n\n(831)\n\n​\n\n(928)\n\n​\n\n(133)\n\nShare-based compensation\n\n \n\n78,265\n\n​\n\n64,520\n\n​\n\n73,592\n\n​\n\n10,523\n\nShare of loss in equity method investments, net of income taxes\n\n \n\n—\n\n​\n\n—\n\n​\n\n2,695\n\n​\n\n385\n\nDeferred income tax benefits\n\n \n\n(4,007)\n\n​\n\n(4,041)\n\n​\n\n(4,059)\n\n​\n\n(580)\n\nImpairment loss of investments\n\n \n\n225,800\n\n​\n\n232,466\n\n​\n\n120,156\n\n​\n\n17,182\n\nForeign currency exchange losses, net\n\n \n\n1,593\n\n​\n\n3,802\n\n​\n\n6,718\n\n​\n\n961\n\nGain on disposal of investments\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(1,500)\n\n​\n\n(214)\n\nGain on disposal of other asset\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(5,215)\n\n​\n\n(746)\n\nChanges in operating assets and liabilities, net of effects from acquisition:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccounts receivable\n\n \n\n4,706\n\n​\n\n(9,043)\n\n​\n\n(163,745)\n\n​\n\n(23,415)\n\nPrepayments and other assets\n\n \n\n36,277\n\n​\n\n50,142\n\n​\n\n26,303\n\n​\n\n3,760\n\nPrepaid assets and amounts due from related parties\n\n \n\n(88,861)\n\n​\n\n(59,002)\n\n​\n\n(83,136)\n\n​\n\n(11,888)\n\nAccounts payable\n\n \n\n4,472\n\n​\n\n50,269\n\n​\n\n175,647\n\n​\n\n25,117\n\nAmounts due to related parties\n\n \n\n15,286\n\n​\n\n12,585\n\n​\n\n(11,363)\n\n​\n\n(1,625)\n\nAdvances from customers and deferred revenue\n\n \n\n(60,114)\n\n​\n\n(158,235)\n\n​\n\n(41,423)\n\n​\n\n(5,923)\n\nLease liabilities\n\n \n\n(31,664)\n\n​\n\n(29,220)\n\n​\n\n(25,421)\n\n​\n\n(3,636)\n\nAccrued liabilities and other current liabilities\n\n \n\n(183,505)\n\n​\n\n(124,018)\n\n​\n\n(314,635)\n\n​\n\n(44,992)\n\nIncome tax payable\n\n \n\n20,990\n\n​\n\n4,680\n\n​\n\n6,885\n\n​\n\n985\n\nNet cash (used in) provided by operating activities\n\n \n\n(32,081)\n\n​\n\n94,283\n\n​\n\n(176,152)\n\n​\n\n(25,191)\n\n**Cash flows from investing activities**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPlacements of short-term deposits\n\n \n\n(6,064,259)\n\n​\n\n(3,428,284)\n\n​\n\n(3,475,510)\n\n​\n\n(496,991)\n\nMaturities of short-term deposits\n\n \n\n8,285,719\n\n​\n\n7,265,712\n\n​\n\n5,815,847\n\n​\n\n831,655\n\nPlacements of short-term investments\n\n \n\n—\n\n​\n\n(10,000)\n\n​\n\n(1,342,297)\n\n​\n\n(191,946)\n\nMaturities of short-term investments\n\n \n\n3,117\n\n​\n\n10,000\n\n​\n\n1,342,297\n\n​\n\n191,946\n\nPlacements of long-term deposits\n\n \n\n(2,141,404)\n\n​\n\n(60,000)\n\n​\n\n—\n\n​\n\n—\n\nMaturities of long-term deposits\n\n​\n\n714,657\n\n​\n\n140,000\n\n​\n\n50,000\n\n​\n\n7,150\n\nPurchase of property and equipment\n\n \n\n(123,207)\n\n​\n\n(186,257)\n\n​\n\n(167,830)\n\n​\n\n(23,999)\n\nPurchase of intangible assets\n\n \n\n(8,084)\n\n​\n\n(24,244)\n\n​\n\n(20,982)\n\n​\n\n(3,000)\n\nCash paid for long-term investments\n\n \n\n(68,332)\n\n​\n\n—\n\n​\n\n(24,000)\n\n​\n\n(3,432)\n\nCash consideration paid for business combination under common control\n\n​\n\n(546,084)\n\n​\n\n(28,770)\n\n​\n\n—\n\n​\n\n—\n\nCash received from disposal of investments\n\n \n\n—\n\n​\n\n—\n\n​\n\n3,000\n\n​\n\n429\n\nProceeds from disposal of property and equipment\n\n \n\n1,083\n\n​\n\n378\n\n​\n\n1,076\n\n​\n\n154\n\nProceeds from disposal of other assets\n\n​\n\n—\n\n​\n\n—\n\n​\n\n3,677\n\n​\n\n526\n\nNet cash provided by investing activities\n\n \n\n53,206\n\n​\n\n3,678,535\n\n​\n\n2,185,278\n\n​\n\n312,492\n\n​\n\n​\n\nF - 12\n\n[Table of Contents](#TOC)\n\n**CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025 (CONTINUED)**\n\n(All amounts in thousands, except share, ADS, per share and per ADS data)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Note 2(f))\n\n**Cash flows from financing activities**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n​\n\nRepurchase of shares\n\n​\n\n(202,422)\n\n​\n\n(247,890)\n\n​\n\n(90,345)\n\n​\n\n(12,919)\n\nDividends paid to shareholders\n\n​\n\n—\n\n​\n\n(2,857,461)\n\n​\n\n(2,407,847)\n\n​\n\n(344,318)\n\nProceeds from exercise of vested share options\n\n \n\n128\n\n​\n\n680\n\n​\n\n—\n\n​\n\n—\n\nNet cash used in financing activities\n\n \n\n(202,294)\n\n​\n\n(3,104,671)\n\n​\n\n(2,498,192)\n\n​\n\n(357,237)\n\nNet (decrease) increase in cash and cash equivalents and restricted cash\n\n \n\n(181,169)\n\n​\n\n668,147\n\n​\n\n(489,066)\n\n​\n\n(69,936)\n\nCash and cash equivalents and restricted cash at the beginning of the year\n\n \n\n698,141\n\n​\n\n530,110\n\n​\n\n1,205,942\n\n​\n\n172,447\n\nEffect of exchange rate changes on cash and cash equivalents and restricted cash\n\n \n\n13,138\n\n​\n\n7,685\n\n​\n\n(12,182)\n\n​\n\n(1,742)\n\n**Cash and cash equivalents and restricted cash at the end of the year**\n\n \n\n530,110\n\n​\n\n1,205,942\n\n​\n\n704,694\n\n​\n\n100,769\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nUS$\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(Note 2(f))\n\n**Supplemental disclosure of cash flows information:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n- Unpaid cash consideration for business acquisition\n\n​\n\n(28,742)\n\n​\n\n—\n\n​\n\n—\n\n​\n\n—\n\n- Income tax received (paid)\n\n \n\n8,895\n\n​\n\n(13,519)\n\n​\n\n(6,116)\n\n​\n\n(875)\n\n- Unpaid cash consideration for repurchase of treasury shares\n\n​\n\n(3,923)\n\n​\n\n(4,365)\n\n​\n\n—\n\n​\n\n—\n\n- Acquisition of property and equipment, included with accrued liabilities and other current liabilities\n\n \n\n62,357\n\n​\n\n73,309\n\n​\n\n61,460\n\n​\n\n8,789\n\n​\n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n​\n\n​\n\n​\n\nF - 13\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**1.**Organization and principal activities\n\n**(a)**Organization and principal activities\n\nHUYA Inc. (“Huya” or the “Company”, also refer to Huya’s consolidated operating entities, where appropriate) is a holding company incorporated in Cayman Islands on March 30, 2017 and conducts its business through its subsidiaries, a VIE and VIE’s subsidiaries (collectively refer to “VIEs”) (collectively, the “Group”) in the People’s Republic of China (the “PRC”).\n\nThe Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. The primary theme of the Group’s platforms is game live streaming. The Group has also extended themes to life and entertainment topics beyond games to cater for the Group’s users’ growing entertainment demands. In providing these services, the Group has cooperated with talent agencies in broadcaster recruitment, live streaming training and support, promotion strategies development and content management and discipline under the Group’s guidance and supervision. The Company generates majority of its revenue from sales of virtual items in live streaming platforms as well as other services, which substantially consist of advertising, online game-related services and others.\n\nBefore April 3, 2020, the Company was a subsidiary of JOYY Inc. (“JOYY”, refer to JOYY Inc. or JOYY’s consolidated operating entities, where appropriate). On April 3, 2020, JOYY transferred 16,523,819 Class B ordinary shares of Huya to Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited (the “Parent Company” or “Tencent”). Upon the closing of the shares transfer, Tencent’s voting power in Huya increased to more than 50% and became the controlling shareholder of Huya.\n\nPursuant to a definitive share transfer agreement dated April 28, 2023 between JOYY and Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited (“Tencent”), the transfer of 38,374,463 Class B ordinary shares of HUYA Inc. from JOYY to Tencent was closed on May 5, 2023. Immediately after the closing of such share transfer, JOYY does not hold any shares of Huya, and Tencent holds 150,386,517 Class B ordinary shares of Huya, representing 62.7% of the total issued and outstanding ordinary shares and 94.4% of the total voting power of the Company.\n\nIn December 2023, the Company acquired 100% equity interest in a global mobile application service provider from a subsidiary of Tencent for an aggregate cash consideration of US$81 million (equivalent to RMB574,826) (the “Acquisition”), which the intention to enhance Huya’s ability to promote and distribute game applications in international markets, while creating synergies with Nimo TV, the Company’s overseas game live streaming platform. This transaction also aligns with Huya’s strategic business transformation emphasizing game - related service offerings and relevant commercialization.\n\nThe Acquisition was a transaction between entities under common control, which, under U.S. GAAP, requires the assets and liabilities to be transferred at the historical cost of the entity, with prior periods retrospectively adjusted to furnish comparative information. See Note 2(d) for additional information.\n\n**(b)**Public offering\n\nThe Company completed its IPO in May 2018, issued and sold a total of 17,250,000 American Depositary shares (“ADSs”) for a total consideration of US$176 million after deducting the underwriting discounts and commissions and offering expenses. Upon the completion of the IPO, the Company’s (1) 17,647,058 outstanding Series A-1 Preferred Shares were converted into Class A ordinary shares, (2) 4,411,765 outstanding Series A-2 Preferred Shares were converted into Class B ordinary shares, and (3) 64,488,235 outstanding Series B-2 Preferred Shares were converted into Class B ordinary shares immediately as of the same date.\n\nIn April 2019, the Company completed a follow-on public offering, issued and sold 13,600,000 ADSs for a total consideration of US$314 million after deducting the underwriting discounts and commissions and offering expenses. JOYY, as a selling shareholder, sold 4,800,000 Huya’s ADSs. These 4,800,000 Class B ordinary shares were converted into Class A ordinary shares automatically.\n\n​\n\nF - 14\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**1.**Organization and principal activities (continued)\n\n**(c)**Principal subsidiaries and VIE\n\nAs of December 31, 2025, the Company’s principal subsidiaries and VIE are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Name**\n\n**  ​ ​ ​**\n\n**Place of********incorporation**\n\n**  ​ ​ ​**\n\n**Date of********incorporation**\n\n**  ​ ​ ​**\n\n**% of direct********or indirect********economic********ownership**\n\n  ​ ​ ​\n\n**Principal activities**\n\n**Principal subsidiaries**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nHuya Limited\n\n​\n\nHong Kong\n\n​\n\nJanuary 4, 2017\n\n​\n\n100\n\n%  \n\nInvestment holding\n\nGuangzhou Huya Technology Co., Ltd. (“Huya Technology”)\n\n​\n\nPRC\n\n​\n\nJune 16, 2017\n\n​\n\n100\n\n%  \n\nSoftware development\n\nHUYA PTE. LTD.\n\n​\n\nSingapore\n\n​\n\nJuly 23, 2018\n\n​\n\n100\n\n%  \n\nInternet value added services\n\nHainan Huya Entertainment Information Technology Co., Ltd. (“Hainan Huya”)\n\n​\n\nPRC\n\n​\n\nDecember 4, 2019\n\n​\n\n100\n\n%  \n\nCultural and Creative services\n\nELECYBER INTERNATIONAL PTE. LTD.\n\n​\n\nSingapore\n\n​\n\nSeptember 27, 2021\n\n​\n\n100\n\n%\n\nInternet value added services\n\nFoshan Hurong Technology Co., Ltd.\n\n​\n\nPRC\n\n​\n\nOctober 19, 2020\n\n​\n\n100\n\n%\n\nProperty management\n\n**VIE**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nGuangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”)\n\n​\n\nPRC\n\n​\n\nAugust 10, 2016\n\n​\n\n100\n\n%  \n\nInternet value added services\n\n​\n\n**(d)**Variable interest entities\n\nVIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders\n\nPRC laws and regulations impose restrictions on foreign ownership and investment in internet-based businesses such as distribution of online information, value-added telecommunications services. Huya is a Cayman Islands company and its PRC subsidiary is considered a foreign-invested enterprise. Huya believes the live streaming service offered through its platform constitutes a type of value-added telecommunication service where foreign ownership and investment are restricted; and therefore Huya should operate its platform through contractual arrangements with a variable interest entity and its shareholders to ensure compliance with the relevant PRC laws and regulations. Huya has entered into a series of contractual arrangements, through Huya Technology, with Guangzhou Huya and the shareholders of Guangzhou Huya to obtain a controlling financial interest (pursuant to ASC 810) over Guangzhou Huya and its subsidiaries, through which Huya operates its live streaming business.\n\nHuya currently conducts its business through Guangzhou Huya and its subsidiaries based on these contractual arrangements, which allow Huya to:\n\n●exercise effective control over Guangzhou Huya and its subsidiaries;\n\n●receive substantially all of the economic benefits of Guangzhou Huya and its subsidiaries; and\n\n●have an exclusive option to purchase all or part of the equity interests in Guangzhou Huya when and to the extent permitted by PRC law.\n\nAs a result of these contractual arrangements, Huya Technology is the primary beneficiary of Guangzhou Huya, and Huya treats Guangzhou Huya as the variable interest entity under U.S. GAAP. Huya has consolidated the financial results of Guangzhou Huya and its subsidiaries in Huya’s consolidated financial statements in accordance with U.S. GAAP. Refer to Note 2(b) to the consolidated financial statements for the principles of consolidation.\n\n​\n\nF - 15\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**1.**Organization and principal activities (continued)\n\n**(d)**Variable interest entities (continued)\n\nVIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders (continued)\n\nAs detailed in Note 1(a), Tencent became the controlling shareholder of Huya starting from April 3, 2020. Subsequently, the shareholders of Guangzhou Huya were changed from Guangzhou Huaduo Network Technology Co., Ltd. and Guangzhou Qinlv Investment Consulting Co., Ltd. to Linzhi Tencent Technology Co., Ltd. (“Linzhi Tencent”). Huya Technology, Guangzhou Huya and Linzhi Tencent, the new shareholder of Guangzhou Huya, entered into a series of contractual arrangements on 17 September 2020. Based on management’s assessment, there is no substantial change in the contractual arrangements and Huya Technology continues to be the primary beneficiary of Guangzhou Huya.\n\nThe following is a summary of the currently effective contractual arrangements by and among Huya Technology, Guangzhou Huya and Linzhi Tencent.\n\n●Exclusive Business Cooperation Agreement\n\nUnder the exclusive business cooperation agreement, Huya Technology has the exclusive right to provide Guangzhou Huya technology support, business support and consulting services related to Guangzhou Huya’s business, the scope of which is to be determined by Huya Technology from time to time. Huya Technology owns the exclusive intellectual property rights created as a result of the performance of this agreement. The timing and amount of the service fee payments shall be determined at the sole discretion of Huya Technology. The term of this agreement is ten years from the execution date of this agreement and will be automatically extended for another ten years, unless otherwise agreed upon by Huya Technology and Guangzhou Huya.\n\n●Exclusive Option Agreement\n\nUnder the exclusive option agreement, Linzhi Tencent irrevocably granted Huya Technology or its designated representatives an exclusive option to purchase, to the extent permitted under PRC law, all or part of its equity interests in Guangzhou Huya. Huya Technology or its designated representatives have sole discretion as to when to exercise such options, either in part or in full. Without Huya Technology’s prior written consent, Linzhi Tencent shall not sell, transfer, mortgage or otherwise dispose of its equity interests in Guangzhou Huya. The term of this agreement is ten years and may be extended at Huya Technology’s sole discretion.\n\n●Equity Interest Pledge Agreement\n\nPursuant to the equity interest pledge agreement, Linzhi Tencent, as the shareholder of Guangzhou Huya, pledged all of its equity interests in Guangzhou Huya to Huya Technology to guarantee the performance by Guangzhou Huya and Linzhi Tencent of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement and voting rights proxy agreement. If Guangzhou Huya or Linzhi Tencent breaches their respective contractual obligations under those agreements, Huya Technology, as the pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. This pledge will become effective on the date the pledged equity interests are registered with the competent administration for market regulation and will remain effective until the pledgor is no longer the shareholder of Guangzhou Huya. The pledged equity interests were registered with the competent administration for market regulation on September 21, 2020.\n\n​\n\nF - 16\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**1.**Organization and principal activities (continued)\n\n**(d)**Variable interest entities (continued)\n\nVIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders (continued)\n\n●Shareholder Voting Rights Proxy Agreement\n\nUnder the voting rights proxy agreement, Linzhi Tencent, as the shareholder of Guangzhou Huya, irrevocably executed a power of attorney and appointed Huya Technology as its attorney-in-fact to exercise such shareholder’s rights in Guangzhou Huya, including, without limitation, the power to vote on its behalf on all matters of Guangzhou Huya requiring shareholder approval under PRC laws and regulations and the articles of association of Guangzhou Huya and rights to information relating to all business aspects of Guangzhou Huya. The term of this agreement is ten years from the execution date of this agreement and will be automatically extended for one more year indefinitely. Huya Technology has sole discretion to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huya.\n\nRisks in relation to the VIE structure\n\nThe Business was primarily conducted through Guangzhou Huya, the VIE, controlled by the wholly foreign-owned enterprise (“WFOE”) through contractual arrangements. In the opinion of management, the contractual arrangements with the VIE and the shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the shareholders of the VIE were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. In March 2019, the National People’s Congress enacted PRC Foreign Investment Law which would be effective starting from January 1, 2020. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment”, which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Existing laws or administrative regulations remain unclear whether the contractual arrangements with variable interest entities will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. However, the possibility that such entities will be deemed as foreign invested enterprise and subject to relevant restrictions in the future shall not be excluded. If variable interest entities fall within the definition of foreign investment entities, the Group’s ability to use the contractual arrangements with the VIE and the Group’s ability to conduct business through the VIE could be severely limited. The Group’s ability to control the VIE also depends on the power of attorney that the wholly owned subsidiary of the Group has to vote on all matters requiring shareholder approval in the VIE. As noted above, the Group believes these powers of attorney are legally enforceable but may not be as effective as direct equity ownership. In addition, if the Group’s corporate structure and the contractual arrangements with the VIE through which the Group conducts its business in the PRC were found to be in violation of any existing or future PRC laws and regulations, the Group’s relevant PRC regulatory authorities could:\n\n●revoke or refuse to grant or renew the Group’s business and operating licenses;\n\n●restrict or prohibit related party transactions between the wholly owned subsidiary of the Group and the VIE;\n\n●impose fines, confiscate income or other requirements which the Group may find difficult or impossible to comply with;\n\n●require the Group to alter, discontinue or restrict its operations;\n\n●restrict or prohibit the Group’s ability to finance its operations, and;\n\n●take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business.\n\n​\n\nF - 17\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**1.**Organization and principal activities (continued)\n\n**(d)**Variable interest entities (continued)\n\n**Risks in relation to the VIE structure (continued)**\n\nThe imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIE, which may result in deconsolidation of the VIE in the Group’s consolidated financial statements. In the opinion of management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group’s operations depend on the VIE to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIE or the shareholders of the VIE fail to perform their obligations under those arrangements.\n\nThe following table sets forth the financial data for the VIEs on an aggregated basis as of December 31, 2024 and 2025 and for the years ended December 31, 2023, 2024 and 2025. For purposes of this presentation, activity within and between the VIEs have been eliminated, but transactions with other entities within the Group have been included without elimination.\n\n*Selected Condensed Consolidated Balance Sheets Data for the VIEs*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, **\n\n​\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\n**RMB**\n\n​\n\n**RMB**\n\n**Assets**\n\n​\n\n​\n\n​\n\n​\n\nCash and cash equivalents\n\n \n\n11,740\n\n​\n\n3,814\n\nRestricted cash\n\n \n\n15,891\n\n​\n\n10,365\n\nShort-term deposits\n\n \n\n430,000\n\n​\n\n110,000\n\nAccounts receivable, net\n\n \n\n45,545\n\n​\n\n121,248\n\nPrepayments and other current assets\n\n \n\n288,416\n\n​\n\n272,026\n\nAmounts due from related parties\n\n \n\n198,115\n\n​\n\n261,364\n\nAmounts due from Group companies (1)\n\n \n\n724,076\n\n​\n\n844,155\n\nInvestments\n\n \n\n408,952\n\n​\n\n265,033\n\nIntangible assets, net\n\n \n\n45,045\n\n​\n\n45,103\n\nLong-term deposits\n\n​\n\n60,000\n\n​\n\n—\n\nRight of use asset\n\n \n\n13,951\n\n \n\n6,537\n\nOther assets\n\n \n\n2,440\n\n​\n\n2,679\n\n**Total assets**\n\n** **\n\n**2,244,171**\n\n​\n\n**1,942,324**\n\nDeferred revenue and advances from customers\n\n \n\n288,165\n\n​\n\n250,946\n\nAccrued liabilities and other current liabilities\n\n \n\n422,230\n\n​\n\n347,131\n\nAmount due to related parties\n\n \n\n134,169\n\n​\n\n129,872\n\nOther liabilities\n\n \n\n82,408\n\n​\n\n24,140\n\n**Total liabilities**\n\n** **\n\n**926,972**\n\n​\n\n**752,089**\n\n**Total shareholders’ equity**\n\n** **\n\n**1,317,199**\n\n​\n\n**1,190,235**\n\n​\n\nThese balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated.\n\n​\n\nF - 18\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**1.**Organization and principal activities (continued)\n\n**(d)**Variable interest entities (continued)\n\n*Selected Condensed Consolidated Statements of Operation Data for the VIEs*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n  ​ ​ ​\n\n**2023**\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\n**RMB**\n\n​\n\n**RMB**\n\n​\n\n**RMB**\n\nThird-party revenues\n\n​\n\n6,686,033\n\n​\n\n5,719,359\n\n​\n\n5,957,570\n\nInter-company revenues\n\n​\n\n—\n\n​\n\n6,196\n\n​\n\n19,540\n\nTotal cost and expenses (2)\n\n \n\n(6,746,390)\n\n​\n\n(5,732,001)\n\n​\n\n(5,963,899)\n\nOthers, net\n\n \n\n(94,625)\n\n​\n\n(97,675)\n\n​\n\n(103,820)\n\n**Loss before income tax expenses**\n\n** **\n\n**(154,982)**\n\n​\n\n**(104,121)**\n\n​\n\n**(90,609)**\n\nIncome tax expenses\n\n \n\n—\n\n​\n\n(253)\n\n​\n\n(299)\n\nShare of loss from equity method investments\n\n \n\n—\n\n​\n\n—\n\n​\n\n(2,695)\n\n**Net loss**\n\n** **\n\n**(154,982)**\n\n​\n\n**(104,374)**\n\n​\n\n**(93,603)**\n\n​\n\n*Selected Condensed Consolidated Cash Flows Data for the VIEs*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n  ​ ​ ​\n\n**2023**\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\n**RMB**\n\n​\n\n**RMB**\n\n​\n\n**RMB**\n\n**Net cash provided by (used in) operating activities**(3)\n\n** **\n\n**56,821**\n\n​\n\n**24,602**\n\n​\n\n**(352,269)**\n\nOther investing activities\n\n \n\n(49,263)\n\n​\n\n(22,838)\n\n​\n\n338,817\n\n**Net cash (used in) provided by investing activities**\n\n** **\n\n**(49,263)**\n\n​\n\n**(22,838)**\n\n​\n\n**338,817**\n\n**Net cash used in financing activities**\n\n** **\n\n**—**\n\n​\n\n—\n\n​\n\n—\n\nNote:\n\n(1)Inter-company service fees for technology support, business support and consulting fees (collectively defined as “VIE service fees”) are charged pursuant to the exclusive business cooperation agreement. As of December 31, 2024 and 2025, the outstanding balance of amounts due from Group companies were inter-company advances. There were no outstanding balances for VIE service fees charged to the VIEs.\n\n(2)For the years ended December 31, 2023, 2024 and 2025, VIE service fees were charged by the WFOE and other subsidiaries to the VIEs amounting to RMB5,530 million, RMB4,622 million and RMB4,783 million, respectively, which were settled as incurred.\n\n(3)For the years ended December 31, 2023, 2024 and 2025, cash paid by the VIEs to the WFOE and other subsidiaries for VIE service fees were RMB5,391 million, RMB4,410 million and RMB4,783 million, respectively. For the years ended December 31, 2023, 2024 and 2025, RMB139  million, RMB212 million and nil of the VIE service fees were not settled by cash, but by netting off against the intercompany receivables due from the primary beneficiary of VIE.\n\n​\n\nF - 19\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.**Principal accounting policies\n\n**(a)**Basis of presentation\n\nThe consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below.\n\n**(b)**Consolidation\n\nThe Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation.\n\nA subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.\n\nA VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Huya Technology and ultimately the Company hold all the variable interests of the VIE and has been determined to be the primary beneficiary of the VIE.\n\n**(c)**Use of estimates\n\nThe preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, the determination of estimated selling prices of multiple element revenue contracts, the valuation allowance for deferred tax assets and income tax, impairment assessment of investments in equity securities without readily determinable fair value, fair value determination for available-for-sale debt investments, and impairment assessment of goodwill.\n\nManagement bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.\n\n​\n\nF - 20\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(d)**Acquisition\n\n(i)Business combination\n\nThe Group accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 “Business Combinations” (“ASC 805”). Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the business acquired, the difference is recognized directly in the consolidated statements of comprehensive loss as gain on bargain purchase. During the measurement period, which can be up to one year from the acquisition date, the Group may record adjustments to the initially recorded balances of assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of comprehensive loss.\n\n(ii)Business combination under common control\n\nThe consolidated financial statements incorporate the financial information of a business that was acquired in 2023 from an entity that controls both the Group as well as the acquired business. Under U.S. GAAP this is considered a business combination under common control and the acquiring company’s (the Group’s) prior year financial statements have been adjusted to reflect the acquisition for all periods during which both entities were under common control (2022 with regard to this transaction).\n\nUnder U.S. GAAP the acquired assets and assumed liabilities have been consolidated in the Group financial statements at the historical basis of the respective account balances.\n\nOn December 22, 2023 (the “Acquisition date”), Huya acquired 100% equity interest in a global mobile application service provider (the “Acquiree”) from a wholly-owned subsidiary of Tencent for an aggregate cash consideration of US$81 million (equivalent to RMB574,826). Revenue and net loss of the Acquiree for the year ended December 31, 2023 were RMB61,431 and RMB4,551 respectively.\n\nAs a business combination under common control, Huya’s consolidated statements of changes in shareholders’ equity have been retrospectively adjusted. RMB574,826 was debited in additional paid-in capital for the year ended December 31, 2023, which represents the cash consideration of Huya’s acquisition from Tencent on December 22, 2023.\n\nThere were no acquisitions for the years ended December 31, 2024 and 2025.\n\n​\n\nF - 21\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(e)**Foreign currency translation\n\nThe Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong, Cayman Islands and Singapore is primarily the United States dollar (“US$”), while the functional currency of the Group’s entities in PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income (loss) in the statement of comprehensive income.\n\nForeign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange losses, net in the consolidated statement of comprehensive income.\n\n**(f)**Convenience translation\n\nTranslations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 =RMB6.9931 on December 31, 2025 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.\n\n**(g)**Cash and cash equivalents\n\nCash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics:\n\ni)Readily convertible to known amounts of cash throughout the maturity period;\n\nii)So near their maturity that they present insignificant risk of changes in value because of changes in interest rates.\n\nThe Group considers all highly liquid investments with original maturities of three months or less as cash equivalents.\n\n​\n\nF - 22\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.**Principal accounting policies (continued)\n\n**(h)**Restricted cash\n\nCash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash is substantially a cash balance on deposit required by its commercial banks, the court, and government department.\n\n**(i)**Short-term deposits and long-term deposits\n\nShort-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented.\n\nLong-term deposits of the Group represent time deposits placed with banks with original maturities of more than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the years presented.\n\n**(j)**Short-term investments\n\nFor investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income.\n\n​\n\nF - 23\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(k)**Receivables\n\nThe Group’s accounts receivable, other receivables, amounts due from related parties, prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from third-party payment platforms, advertising customers and third party distribution platforms. The activity in the loss allowance for the years ended December 31, 2023, 2024 and 2025 is detailed in Note 7, Note 8 and Note 22.\n\nTo estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical experience of loss severity and recoveries, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. Other key factors that influence the expected credit loss analysis include credit rating, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances.\n\n**(l)**Investments\n\nEquity Investments Accounted for Using the Equity Method\n\nThe Group accounts for its equity investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment.\n\nThe Group assesses its equity investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. The Group evaluates its equity method investment for impairment under ASC 323-10. An impairment loss on an equity method investment is recognized in the consolidated statement of comprehensive income when the decline in value is determined to be other-than-temporary. No impairment loss was recognized for the years ended December 31, 2023, 2024 and 2025.\n\nEquity Investments without Readily Determinable Fair Values\n\nThe Group elected to record equity investments without readily determinable fair values, which are not accounted for using the equity method and do not qualify for the existing practical expedient in ASC 820 to estimate fair value using the net asset value per share (or its equivalent) of the investments and, at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying values of the equity investments in earnings. Changes in the carrying values of the equity investment are made whenever there are impairment or observable price changes in orderly transactions for the identical or similar investment of the same issuer that are known or that can reasonably be known to the Group based on reasonable effort.\n\nFor equity investments without readily determinable fair value for which the Group has elected to apply the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying judgment in considering various factors and events including a) adverse performance of investees; b) adverse industry developments affecting investees; and c) adverse regulatory social, economic or other developments affecting investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss of investments equal to the difference between the carrying value and fair value. The Group recognized impairment losses of RMB210,813, RMB166,127 and RMB43,698 for the years ended December 31, 2023, 2024 and 2025, respectively. Refer to Note 9- Investments for further information.\n\n​\n\nF - 24\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.**Principal accounting policies (continued)\n\n**(l)****Investments (continued)**\n\nAvailable-for-sale Debt Investments\n\nThe Group has classified its investments in debt securities, other than those the held to maturity debt securities, as available-for-sale securities. The Group recorded available-for-sale debt investments at estimated fair values with the aggregate unrealized gains and losses, net of tax, being reflected in “accumulated other comprehensive income” in the consolidated balance sheets. If the amortized cost basis of an available-for-sale investment exceeds its fair value and if the Group has the intention to sell the investment or it is more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis, an impairment is recognized in the consolidated statements of comprehensive income. If the Group does not have the intention to sell the investment and it is not more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis and the Group determines that the decline in fair value below the amortized cost basis of an available-for-sale investment is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance for credit losses along with the impairment loss of investments in the consolidated statements of comprehensive income. The allowance is measured as the amount by which the debt investment’s amortized cost basis exceeds the Group’s best estimate of the present value of cash flows expected to be collected. The Group recognized fair value changes of RMB35,811, RMB145,458 and RMB120,027 for the years ended December 31, 2023, 2024 and 2025, respectively. Refer to Note 9 - Investments for further information.\n\nThe Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information.\n\n**(m)**Property and equipment\n\nProperty and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Property and equipment mainly consist of servers, computers and equipment, leasehold improvements, office furniture and others.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Estimated useful lives**\n\n**  ​ ​ ​**\n\n**Residual rate**\n\n​\n\nServers, computers and equipment\n\n​\n\n3-4 years\n\n​\n\n—\n\n%\n\nLeasehold improvements\n\n​\n\nShorter of lease term or the estimated useful lives of the assets\n\n​\n\n—\n\n%\n\nOffice furniture and others\n\n​\n\n3-5 years\n\n​\n\n—%-5\n\n%\n\n​\n\nThe Company also has certain construction in progress which represents a building under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use.\n\nExpenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of comprehensive income.\n\n​\n\nF - 25\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(n)**Intangible assets\n\nIntangible assets mainly consist of copyrights of video content, license, software, domain names, trademarks, platform content and technology. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. As of December 31, 2024 and 2025, there are no indefinite lived intangibles. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Estimated useful lives**\n\nCopyrights of video content\n\n​\n\n1 – 4 years\n\nLicense\n\n​\n\n15 years\n\nSoftware\n\n​\n\n1 – 10 years\n\nDomain names\n\n​\n\n15 years\n\nTrademarks\n\n​\n\n5-11 years\n\nPlatform content\n\n​\n\n7 years\n\nTechnology\n\n​\n\n4 years\n\n​\n\n**(o)****Impairment of goodwill**\n\nGoodwill represents the excess of the purchase price over the fair value of identifiable assets and liabilities acquired in a business combination.\n\nGoodwill is not depreciated or amortized. The Group conducts a goodwill impairment test at the reporting unit level annually in the fourth quarter, or more frequently when events or circumstances occur indicating that the recorded goodwill might be impaired. The Group first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Group decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value (determined using the income approach) of each reporting unit with its carrying amount. An impairment charge will be recorded for the amount by which the carrying amount of the reporting unit exceeds its fair value up to a maximum amount of the goodwill balance for the reporting unit.\n\nApplication of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows. The estimated cash flow projections were based on management’s estimates which include significant judgments and assumptions relating to revenue growth rate, the gross profit ratio, and the discount rate. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.\n\nThe Group determined there are two reporting units as of December 31, 2025. One reporting unit relates to providing live streaming, game-related and advertising services through the Group’s live streaming platforms, and the other reporting unit relates to the recently acquired global mobile application service provider (the only reporting unit with a goodwill balance). No impairment loss of goodwill was recognized for the years ended December 31, 2023, 2024 and 2025, respectively. Refer to Note 10- Goodwill for further information.\n\n​\n\nF - 26\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.**Principal accounting policies (continued)\n\n**(p)**Impairment of long-lived assets\n\nFor long-lived assets other than investments whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset grouping may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the asset grouping. Any impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.\n\nNo impairment of long-lived assets was recognized for the years ended December 31, 2023, 2024 and 2025.\n\n**(q)**Revenue\n\nUnder ASC 606, revenue is recognized when a customer obtains control of promised goods (i.e. virtual items) or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. The following table disaggregates the Group’s revenue by major type for the years ended December 31, 2023, 2024 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n  ​ ​ ​\n\n**2023**\n\n  ​ ​ ​\n\n**2024**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nLive streaming\n\n \n\n6,450,782\n\n​\n\n4,745,195\n\n​\n\n4,594,014\n\nGame-related services, advertising and others (i)\n\n \n\n543,546\n\n​\n\n1,333,920\n\n​\n\n1,908,386\n\nTotal\n\n \n\n6,994,328\n\n​\n\n6,079,115\n\n​\n\n6,502,400\n\n(i)\n\nGame-related services, advertising and others mainly include in-game virtual item sales, game distribution and advertising services.\n\nRevenue recognition and significant judgments\n\n(i)\n\nLive streaming\n\nThe Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. It generates revenue primarily from sales of virtual items in the platforms. The Group has a top-up system for users to purchase the Group’s virtual currency, which can then be utilised to purchase virtual items for use on the live streaming platforms. Users can top up via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable and without expiry. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below unless otherwise stated. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with broadcasters and talent agencies which recruit and manage broadcasters in accordance with their revenue sharing arrangements. As the virtual currency has no stipulated expiry period and it is often consumed soon after it is purchased based on the history of its turnover, the Group considers it does not expect to be entitled to a breakage amount for the virtual currency. Nevertheless, any unconsumed virtual currency which was purchased by inactive users exceeding a certain period, assessed based on historical user activities, is recognized as revenue of the Group. However, the amount has not been significant.\n\n​\n\nF - 27\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.**Principal accounting policies (continued)\n\n**(q)**Revenue (continued)\n\nRevenue recognition and significant judgments (continued)\n\n(i)\n\nLive streaming (continued)\n\nThe Group evaluates and determines that it is the principal and views users to be its customers in the revenue generating arrangement and the Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenue and revenue sharing fee paid/payable to broadcasters and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing.\n\nThe Group designs, creates and offers various virtual items for sales to users with pre-determined standalone selling price. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use, while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to broadcasters to show support for their favorite broadcasters, or purchase time-based virtual items for one or multiple months at a monthly fee, which provide users with recognized status, such as priority speaking rights or special user symbols over a period of time. Revenue related to each consumable item is recognized as single performance obligation at the point in time when the virtual item is transferred directly to the users and consumed by them, while revenue related to time-based virtual items provided on a subscription basis is recognized ratably over the contract period. The Group does not have any further performance obligations to the user after the virtual items are consumed or after the stated contract period of time for time-based items.\n\nThe Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as the Huya Noble Member Program. Determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The contract of Huya Noble Member Program, which is normally purchased on a monthly basis, includes three major virtual items, a) the noble member status, b) the virtual currency coupons, and c) the right of subsequent renewal at a discounted price, which are considered distinct and accounted for separately under ASC 606. A noble member status itself cannot be purchased on a standalone basis. The users are eligible to use it for one month and the users can simultaneously purchase multiple months of the package (with effective period of noble member status limited to a maximum of 24 months from date of purchase) at any point in time. The virtual currency coupons, which have the same purchasing power as the Group’s virtual currency but with expiry dates, are valid to purchase virtual items in the live streaming platforms for a fixed period. Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. For instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, such as the noble member status and the virtual currency coupons, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. In respect of the right of subsequent renewal at a discounted price, the Group estimates individual user’s times of renewal based on historical data of users’ spending patterns and average times of renewal. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue allocated to the noble member status, it’s generally recognized ratably over the expected period that the users maintain their noble member status, as users simultaneously consume and receive a series of services, virtual items and virtual rights. For revenue related to virtual currency coupons provided on a consumption basis, virtual currency coupons used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed above unless otherwise stated. The virtual currency coupons have expiry dates, and historical data shows that virtual currency coupons are consumed shortly after they are released to users and the forfeiture rate remains relatively low for the periods reported, therefore, the Group recognize revenue the earlier of when the virtual currency coupon expires, or when it is consumed. For the right of subsequent renewal at a discounted price, upon each time a subsequent renewal is purchased, the cash received is recorded as deferred revenue and allocated proportionally to the noble member status and virtual currency coupons based on their relative standalone selling price and revenue is then recognized following the revenue recognition method of noble member status and virtual currency coupons as described above.\n\n​\n\nF - 28\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(q)****Revenue (continued)**\n\n**Revenue recognition and significant judgments (continued)**\n\n(ii)\n\nAdvertising\n\nThe Group generates advertising revenues primarily from sales of various forms of advertising and promotion campaigns, including (i) display advertisements in various areas of our platform, (ii) native advertisements in cooperation with broadcasters, and (iii) game events advertising and campaigns. Advertisements on the Group’s platforms are generally charged on the basis of duration or per specified action. When the service is transferred to customers, revenue from time-based advertising arrangement is recognized ratably over the contract period of display. Revenue from performance-based advertising is recognized at the point in time when the Group is able to deliver the specified actions as requested by the customers. The Group enters advertising agreements with certain advertising agencies or other cooperated programmatic advertising platforms.\n\nWhen the Group has the latitude in establishing the price and is primarily responsible for delivering the contents by itself, the Group acts as the principal and recognizes revenue on a gross basis for the advertising contracts. Advertisements on the Group’s platforms are generally charged based on duration or per specified action, with revenue recognized ratably over the contract period of display or at the point of delivering the specified actions. Conversely, when the Group is not primarily responsible for the advertising arrangements by itself, it acts as an agent. In such cases, the Group recognizes its entitled share of the revenues in accordance with the cooperation agreements, commencing from the date the advertisements are displayed on the Group’s platforms or when the performance obligations are satisfied.\n\nPayment terms and conditions vary by contract type, although terms generally include a requirement of payment within 3 months. Both third-party advertising agencies and direct advertisers are generally billed at the end of the display period, and the cooperated programmatic advertising platforms are generally billed in the following month, all the payments are due usually within 3 months. In instances where the timing of revenue recognition differs from the timing of billing, the Group has determined the advertising contracts generally do not include a significant financing component. The primary purpose of the credits terms is to provide customers with simplified and predictable ways of purchasing the Group’s advertising services, not to receive financing from its customers or to provide customers with financing.\n\n(iii)\n\nOnline games revenues\n\nThe Group generates revenues from offering virtual items in online games developed by the Group itself or third parties to game users and game distribution revenue. The Group has a top-up system for game users to purchase game tokens for use. Game users can top up via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Game tokens is non-refundable and without expiry. As the game token is often consumed soon after it is purchased based on history of turnover of the game token, the Group considers it does not expect to be entitled to a breakage amount for the game token.\n\nMajority of online games revenues were derived from the Group’s self-developed games, game distribution services and in-game virtual item sales for the years presented.\n\nWith respect to the self-developed online games that the Group distributes on other platforms or self-publishes on its own platforms, the Group owns the games’ copyrights and other intellectual property, and takes primary responsibilities of game development and game operation, including designing, development, and updating of the games including the game content, as well as the pricing of virtual items, providing on-going updates of new contents and bug fixing, determining the distribution platforms and payment channels, and providing customer services. Therefore, the Group considers itself to be the principal in these contracts and views users to be its customers. Revenues derived from self-developed games are recorded on a gross basis, and fees to be shared with distribution platforms and payment handling costs charged by payment platforms are recorded as cost of revenues.\n\n​\n\nF - 29\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(q)****Revenue (continued)**\n\n**Revenue recognition and significant judgments (continued)**\n\n**(iii)****Online games revenues (continued)**\n\nUsers play games free of charge and are charged for purchases of virtual items mainly including consumable and perpetual items, which can be utilized to enhance users’ game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online games. The Group maintains information on consumption details of in-game virtual items, therefore, the Group recognizes revenues based on item-based model: (1) for consumable items, the revenue is recognized immediately upon consumption as the Group does not have further performance obligations to the user after the virtual items are consumed immediately; (2) for perpetual items, as the Group has responsibilities to ensure the game users can continue to gain access to the games to get the in-game experience and benefit after the sale of the perpetual items and the Group’s service obligations are directly linked to each game user’s engagement, therefore, the revenue from sales of perpetual items is recognized ratably over the user relationship period of a specific game as described below.\n\nThe estimated user relationship period is based on data collected from those game users who have purchased game tokens. The Group maintains a system that captures the following information for each game user: (a) the frequency that game users log into each game, and (b) the amount and the timing of when the game users charge his or her game token. The Group estimates the user relationship period for a particular game to be the date a user purchases a game token through the date the Group estimates the game user plays the game for the last time. This computation is completed on a user by user basis. Then, the results for all analyzed users are averaged to determine an estimated end user relationship period for each game. Revenues from in-game payments of each month are recognized over the user relationship period estimated for that game.\n\nThe determination of user relationship period is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. The Group assesses the estimated user relationships on a monthly basis. Any adjustments arising from changes in the user relationship as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections.\n\nOnline games developed by related and third-party game developers are displayed through the Group’s platforms to attract users to play the games. In accordance with ASC 606, the Group assesses whether it acts as the principal or as an agent in the arrangement with each party respectively. When the Group has the latitude in establishing the price and is primarily responsible for fulfillment and acceptability of the game services by itself, the Group acts as the principal. The group recognizes revenue based on the proceeds earned from selling in-game virtual items on a gross basis at point-in-time when the performance obligations are satisfied. Proceeds earned from selling in-game virtual items are shared between the Group and the third-party game developers, with the amount paid to the third-party game developers generally calculated based on amounts paid by paying players, after deducting the fees paid to the payment channels and the distribution channels. Fees paid to the game developers, distribution channels and payment channels are recorded as cost of revenues. When the Group considered it does not have the primary responsibility for fulfillment and acceptability of the game services, the Group considers itself as agent in these arrangements. Accordingly, the Group records the in-game virtual item sales revenue on a net basis based on the ratios pre-determined with the game developers at point-in-time when the performance obligations are satisfied, which is generally when the paying players purchase virtual currencies issued by the third-party game developers.\n\n​\n\nF - 30\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(q)****Revenue (continued)**\n\n**Contract balances**\n\nContract liabilities primarily consist of deferred revenue for unconsumed virtual items and unamortized revenue from virtual items in the Group’s platforms, where there is still an obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met.\n\nDuring the years ended December 31, 2023, 2024 and 2025, the Group recognized revenue amounting to RMB446,881, RMB412,257 and RMB265,628, respectively, that had been included in the corresponding contract liability balance at the beginning of the years.\n\nAs of December 31, 2025, the aggregate amount of transaction price allocated to remaining performance obligations was RMB259,991, the Company expects to recognize the remaining performance obligations as revenue as follows. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2026**\n\n**  ​ ​ ​**\n\n**2027 and after**\n\n**  ​ ​ ​**\n\n**Total**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nRevenue expected to be recognized\n\n \n\n228,167\n\n​\n\n31,824\n\n​\n\n259,991\n\n​\n\n(r)\n\nCost of revenues\n\nAmounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of (i) revenue sharing fees to broadcasters and content costs, including payments to e-sports content providers and other various content providers, (ii) costs of in-game virtual items, (iii) bandwidth and server custody fees, (iv) salaries and welfare, (v) payment handling costs, (vi) depreciation and amortization expense for servers and other equipment, and intangibles directly related to operating the platform, (vii) share-based compensation, (viii) other taxes and surcharges, and (ix) other costs.\n\n(s)\n\nResearch and development expenses\n\nResearch and development expenses primarily consist of (i) salaries and welfare for research and development personnel, and (ii) share-based compensation for research and development personnel. Costs incurred during the research stage are expensed as incurred. Costs incurred in the development stage, prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred.\n\nThe Company recognizes software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. The Company had not capitalized any costs related to internal use software during the years ended December 31, 2023, 2024 and 2025.\n\n(t)\n\nSales and marketing expenses\n\nSales and marketing expenses primarily consist of (i) advertising and market promotion expenses, (ii) salaries and welfare for sales and marketing personnel, and (iii) share-based compensation for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB348,235, RMB233,149 and RMB229,478 for the years ended December 31, 2023, 2024 and 2025, respectively.\n\n​\n\nF - 31\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n2.\n\nPrincipal accounting policies (continued)\n\n(u)\n\nGeneral and administrative expenses\n\nGeneral and administrative expenses primarily consist of (i) salaries and welfare for management and administrative personnel, (ii) credit loss provision, (iii) depreciation and amortization expenses and (iv) share-based compensation for management and administrative personnel.\n\n(v)\n\nEmployee social security and welfare benefits\n\nEmployees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the accompanying statement of comprehensive income amounted to RMB194,779, RMB142,272 and RMB136,623 for the years ended December 31, 2023, 2024 and 2025, respectively. During the years ended December 31, 2023, 2024 and 2025, headcount reduction initiatives primarily related to operations and cost-related personnel were undertaken as part of the Group’s business optimization plans. These initiatives resulted in one time employee severance programs with corresponding recorded provisions of RMB34,000, RMB25,857 and RMB23,458 respectively. The charges are primarily reported within cost of revenues and operating expenses in the accompanying statements of comprehensive income.\n\n(w)\n\nShare-based compensation\n\nShare-based compensation expense arises from share-based awards, primarily including share options for the purchase of Huya’s ordinary shares and Huya’s restricted share units, granted by the Group to its management, key employees and non-employees. Certain of the Group’s employees were granted Tencent’s share-based awards and therefore related share-based compensation expenses with regard to Tencent’s share-based awards were recognised in the Group’s financial statements.\n\nHuya’s share options\n\nPrior to the IPO date (Note 1(b)) and during the year of 2025, in determining the fair value of share options granted, the binomial option-pricing model was applied. The determination of the fair value was affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends.\n\nShare-based compensation expense for share options granted to employees is measured based on their grant-date fair values and recognized over the requisite service period, which is generally the vesting period. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and the related compensation expense is not recorded for the number of awards so estimated. No performance-based awards were granted or recognized as share-based compensation expense for the years ended December 31, 2023, 2024 and 2025.\n\nHuya’s restricted share units\n\nShare-based awards with service conditions only are measured at the grant date fair value of the awards and recognized as expenses using the graded-vesting method, net of estimated forfeitures, over the requisite service period. Fair value of restricted share units (“RSUs”) is determined with reference to the fair value of the underlying shares. Forfeiture rate is estimated based on historical forfeiture patterns and adjusted to reflect future change in circumstances and facts, if any. If actual forfeitures differ from those estimates, the Company may need to revise those estimates used in subsequent periods.\n\n​\n\nF - 32\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n(x)\n\nLeases\n\nUnder ASC 842, the Group determines if an arrangement is or contains a lease at inception. The Company categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessee to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented.\n\nLease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Operating lease expense is recognized on a straight-line basis as cost of sales, sales and marketing expenses, general and administrative expenses and research and development expenses over the term of the lease.\n\nFor operating leases with a term of one year or less, the Company has elected not to recognize a lease liability or ROU asset on its consolidated balance sheets. Instead, it recognizes the lease payments as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements of operations and cash flows. The Company has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as a single lease component.\n\n(y)\n\nGovernment grants\n\nGovernment grants, which mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development, are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated income statements upon receipt or when all conditions attached to the grants are fulfilled.\n\n(z)\n\nIncome taxes\n\nCurrent income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized in statement of comprehensive income in the period enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.\n\nUncertain tax positions\n\nThe guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Group did not recognize any interest and penalties associated with uncertain tax positions for the years ended December 31, 2023, 2024 and 2025. As of December 31, 2024 and 2025, the Group did not have any significant unrecognized uncertain tax positions.\n\n​\n\nF - 33\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n**(aa)****Treasury shares**\n\nThe Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in “Treasury shares” on the consolidated balance sheets. At retirement of the treasury share, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is charged to additional paid-in capital.\n\n(bb)\n\nStatutory reserves\n\nThe Group’s PRC entities are required to make appropriations to certain non-distributable reserve funds.\n\nIn accordance with the relevant laws and regulations established in the PRC, the Group’s entities registered as WFOEs and PRC domestic companies must make appropriations from its after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”)) to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company.\n\nThe use of the statutory surplus fund and discretionary surplus fund are restricted to the off-setting of losses or increasing capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to staff and for the collective welfare of employees. All these reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.\n\nDuring the years ended December 31, 2023, 2024 and 2025, there were no appropriations made to the statutory surplus funds, respectively.\n\n(cc)\n\nRelated parties\n\nParties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation.\n\n(dd)\n\nDividends\n\nDividends are recognized when declared.\n\nOn March 19, 2024, the Company declared a special cash dividend of US$0.66 per ordinary share, or US$0.66 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on May 10, 2024. On August 13, 2024, the Company declared a special cash dividend of US$1.08 per ordinary share, or US$1.08 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on October 9, 2024, payable in U.S. dollars.\n\nOn March 18, 2025, the company declared a cash dividend of US$1.47 per ordinary share, or US$1.47 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on June 17, 2025, payable in U.S. dollars.\n\n​\n\nF - 34\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n(ee)\n\nLoss per share\n\nBasic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options and the vesting of restrict share units using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such share would be anti-dilutive.\n\n(ff)\n\nSegment reporting\n\nOperating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s Acting Chief Executive Officer and Chief Financial Officer have been identified as the CODM.\n\nThe Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations which include, but not limited to, customer base, homogeneity of products and technology. The Group’s operating segment is based on such organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. The Group has internal reporting of revenue, cost and expenses by nature as a whole. Hence, the Group has only one operating segment.\n\nThe accounting policies of the single segment are the same as described in the principal accounting policies. The CODM assesses performance for the single segment and decides how to allocate resources based on net loss that also is reported on the Consolidated Statements of Comprehensive Income as consolidated net loss. The measure of the single segment assets is reported on the Consolidated Balance Sheets as total consolidated assets.\n\nThe CODM reviews revenues and expenses at the consolidated level as disclosed in the Group’s Consolidated Statements of Comprehensive Income and uses net income to evaluate return on assets and to monitor budget versus actual results and in competitive analysis by benchmarking to the Group’s competitors. The competitive analysis and the monitoring of budgeted versus actual results are used in assessing the segment’s performance and in establishing management’s compensation.\n\nSubstantially the majority of the Group’s revenues are derived from China based on the geographical locations where services are provided to customers. In addition, the Group’s long-lived assets are substantially all located in and derived from China, and the amount of long-lived assets attributable to any other individual country is not material. Therefore, no geographical segments are presented.\n\n(gg)\n\nNewly adopted accounting standard updates\n\nIncome Taxes (Topic 740). In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740)- Improvements to Income Tax Disclosures. ASU No. 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The guidance is effective on a prospective basis for fiscal year beginning after December 15, 2024. The Group adopted this ASU for the year ended December 31, 2025 prospectively, and disclosed additional descriptive information as required under Accounting Standards Codification 740(Note 18).\n\nOther accounting standards that the Group adopted beginning January 1, 2025 did not have a significant impact on the Group’s consolidated financial statements.\n\n​\n\nF - 35\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**2.****Principal accounting policies (continued)**\n\n(hh)\n\nRecently issued accounting pronouncements\n\nIncome Statement(Topic 220). In November 2024, the FASB issued ASU No. 2024-03, Income Statement(Topic 220)- Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40). ASU No. 2024-03 requires publicly-traded business entities to disclose specified information about the components of certain costs and expenses that are currently disclosed in the financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted.\n\nFinancial Instruments—Credit Losses (Topic 326). In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326)- Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU No. 2025-05 provides (1) all entities with a practical expedient and (2) entities other than public business entities with an accounting policy election when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. The guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods.\n\nIntangibles (Topic 350). In July 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other - Internal-Use Software (Subtopic 350-40). ASU No. 2025-06 modernizes the accounting for internal-use software to reflect current development practices, clarifies when to begin capitalizing costs, and enhances disclosure requirements. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted.\n\nGovernment Grants (Topic 832). In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832). ASU No. 2025-10 establishes guidance on the recognition, measurement, and presentation of government grants received by business entities. The guidance is effective for annual reporting periods beginning after December 15, 2029, and interim reporting periods within those annual reporting periods. Early adoption is permitted.\n\nThe Group does not expect to adopt ASU 2024-03, ASU No. 2025-05, ASU No. 2025-06 and ASU No. 2025-10 early and is currently evaluating the impact of adopting this standard on its consolidated financial statements.\n\nOther accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.\n\n​\n\nF - 36\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**3.**Certain risks\n\n(a)\n\nForeign exchange risk\n\nThe revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies.\n\n(b)\n\nCredit risk\n\nThe Group’s financial instruments potentially subject to significant concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term deposits, long-term deposits and accounts receivable.\n\nAs of December 31, 2024 and 2025, substantially all of the Group’s cash and cash equivalents, restricted cash, short-term deposits and long-term deposits were placed with the PRC financial institutions and international financial institutions. Management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. Nevertheless under the PRC law, it is required that a commercial bank in the PRC that holds third party cash deposits should maintain a certain percentage of total customer deposits taken in a statutory reserve fund for protecting the depositors’ rights over their interests in deposited money. PRC banks are subject to a series of risk control regulatory standards; PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Group believes that it is not exposed to unusual risks as these financial institutions are either PRC banks or international banks with high credit quality. The Group has not experienced any losses on its deposits of cash and cash equivalents and term deposits for the years ended December 31, 2023, 2024 and 2025 and believes that its credit risk to be minimal. Accounts receivable is typically unsecured and is primarily derived from revenue earned from third-party payment platforms, advertising customers and third party distribution platforms.\n\n**(c)****Concentration of customers**\n\nFor the year ended December 31, 2023, there were no customers who collectively accounted for more than 10% of the Group’s total revenue. For the year ended December 31, 2024, around 11% of the Group’s total revenues were derived from Tencent. For the year ended December 31, 2025, there were no customers who collectively accounted for more than 10% of the Group’s total revenue.\n\n​\n\n4.\n\nCash and cash equivalents\n\nCash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, and all highly liquid investments with maturities of three months or less. Cash and cash equivalents balance as of December 31, 2024 and 2025 primarily consist of the following currencies:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2024**\n\n​\n\n**December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n**RMB**\n\n​\n\n​\n\n​\n\n**RMB**\n\n​\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**equivalent**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**equivalent**\n\nRMB\n\n​\n\n316,708\n\n​\n\n316,708\n\n​\n\n510,076\n\n​\n\n510,076\n\nUS$\n\n \n\n114,353\n\n​\n\n822,013\n\n​\n\n24,925\n\n​\n\n175,190\n\nSGD\n\n \n\n9,245\n\n​\n\n49,198\n\n​\n\n1,342\n\n​\n\n7,328\n\nOthers (i)\n\n \n\nN/A\n\n​\n\n992\n\n​\n\nN/A\n\n​\n\n69\n\n**Total**\n\n \n\n​\n\n​\n\n1,188,911\n\n​\n\n​\n\n​\n\n692,663\n\n(i)As of December 31, 2024 and 2025, the other currencies consist of Hong Kong Dollar, Euro and Japanese Yen.\n\n​\n\nF - 37\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**5.****Restricted cash**\n\nThe Group’s restricted cash represents substantially cash balances on deposit required by its commercial banks, the court (due to lawsuits) and certain local governments in China to be restricted from withdrawal. As of December 31, 2024 and 2025, the Group’s restricted cash balances were RMB17,031 and RMB12,031, respectively.\n\nAs of December 31, 2025, due to a pending lawsuit, there may be an additional amount up to RMB20 million subject to potential restriction imposed from the court when there is additional cash amount in the particular bank account.\n\n​\n\n**6****.**Short-term deposits and long-term deposits\n\nShort-term deposits represent time deposits placed with banks with original maturities more than three months but less than one year. Short-term deposits balance as of December 31, 2024 and 2025 primarily consist of the following currencies:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2024**\n\n​\n\n**December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n**RMB**\n\n​\n\n​\n\n​\n\n**RMB**\n\n​\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**equivalent**\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**equivalent**\n\nRMB\n\n​\n\n1,135,000\n\n​\n\n1,135,000\n\n​\n\n1,720,000\n\n​\n\n1,720,000\n\nUS$\n\n \n\n408,999\n\n​\n\n2,940,048\n\n​\n\n200,000\n\n​\n\n1,405,760\n\n**Total**\n\n \n\n​\n\n​\n\n4,075,048\n\n​\n\n​\n\n​\n\n3,125,760\n\n​\n\nLong-term deposits are mainly deposits in commercial banks with maturities of greater than one year and wealth management products issued by commercial banks for which the Group has the positive intent and ability to hold those deposits to maturity with maturities of greater than one year. Long-term deposits balance as of December 31, 2024 and 2025 primarily consist of the following currencies:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, 2024**\n\n​\n\n**December 31, 2025**\n\n​\n\n​\n\n​\n\n​\n\n**RMB**\n\n​\n\n​\n\n​\n\n**RMB**\n\n​\n\n**  ​ ​ ​**\n\n**Amount**\n\n**  ​ ​ ​**\n\n**equivalent**\n\n**  ​ ​ ​**\n\n**Amount**\n\n**  ​ ​ ​**\n\n**equivalent**\n\nRMB\n\n \n\n1,470,000\n\n \n\n1,470,000\n\n \n\n—\n\n \n\n—\n\n**Total**\n\n \n\n  ​\n\n \n\n1,470,000\n\n \n\n  ​\n\n \n\n—\n\n​\n\n​\n\n**7.**Accounts receivable, net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\nAccounts receivable, gross\n\n \n\n85,728\n\n \n\n250,959\n\nLess: credit loss provision\n\n \n\n(9,684)\n\n \n\n(12,390)\n\nAccounts receivable, net\n\n \n\n76,044\n\n \n\n238,569\n\n​\n\nThe following table sets out movements of the credit loss provision for the years ended December 31, 2023, 2024 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nBalance at beginning of the year\n\n \n\n(2,303)\n\n​\n\n(15,717)\n\n​\n\n(9,684)\n\nCurrent year provision\n\n \n\n(13,888)\n\n​\n\n(6,501)\n\n​\n\n(3,874)\n\nCurrent year reversal\n\n \n\n474\n\n​\n\n12,534\n\n​\n\n1,168\n\nBalance at end of the year\n\n \n\n(15,717)\n\n​\n\n(9,684)\n\n​\n\n(12,390)\n\n​\n\n​\n\nF - 38\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**8.**Prepayments and other current assets, net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\nInput value-added tax to be deducted\n\n \n\n283,401\n\n​\n\n301,042\n\nInterest receivable\n\n \n\n154,392\n\n​\n\n173,574\n\nOther receivable(i)\n\n​\n\n—\n\n​\n\n66,038\n\nPrepayments to vendors and content providers\n\n \n\n63,437\n\n​\n\n49,366\n\nOthers\n\n \n\n22,660\n\n \n\n23,294\n\nLess: credit loss provision\n\n \n\n(216)\n\n \n\n(66,236)\n\n**Total**\n\n \n\n523,674\n\n \n\n547,078\n\n(i)\n\nThe other receivable was arose from a 2021 arrangement with a broadcaster. Based on a heightened risk of non-recoverability, the provision of RMB66,038 was recognized for this receivable for the year ended December 31, 2025.\n\n​\n\n​\n\n**9.**Investments\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\nEquity investments without readily determinable fair values (i)\n\n \n\n157,736\n\n​\n\n111,833\n\nDebt investments (ii)\n\n \n\n283,054\n\n​\n\n163,027\n\nEquity method investments (iii)\n\n \n\n—\n\n \n\n21,305\n\n​\n\n \n\n440,790\n\n​\n\n296,165\n\n(i)Equity investments without readily determinable fair values include investment in equity securities of private investee companies over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock.\n\nIn 2024 and 2025, the Group did not acquire such equity interests in any privately-held investee companies.\n\nThe Group used the measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. Based on ASU 2016-01, entities that elect the measurement alternative will report changes in the carrying value of the equity investments in current earnings. If the measurement alternative is used, changes in the carrying value of the equity investment will be recognized whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer, and impairment charges will be recorded when any impairment indicators are noted and the fair value is lower than the carrying value.\n\nThe Group, with the assistance of an independent valuation expert, assessed for impairment of certain investments as of the balance sheet date and recognized RMB210,813, RMB166,127 and RMB43,698 in impairment charges for equity investments without readily determinable fair value for the years ended December 31, 2023, 2024 and 2025. The Group’s impairment assessments were triggered as a result of the weak financial performance of certain investees. In the circumstances and as part of management’s assessments, the Group, used unobservable Level 3 inputs including (i) a selection of price-to-sales multiples and enterprise value-to-sales multiples of comparable companies, (ii) probability of the different scenarios assumed under the equity allocation model and (iii) a discount for lack of marketability, to determine, respective fair values for the investees which were lower than the related carrying values.\n\n​\n\nF - 39\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**9.**Investments (continued)\n\n(ii)For the year ended December 31, 2023, the Group recorded fair value change of RMB35,811. Considering the prolonged business performance of these investments, the quality of the investments’ credit and other adverse conditions, the Group performed a quantitative assessment with the assistance of an independent appraiser. Based on the assessment, the Group recognized a credit impairment in the aggregated amount of RMB14,987 which was reported in net loss, and the fair value change associated with the non-credit losses amounted to RMB20,824, which was reported in other comprehensive income (loss).\n\nFor the year ended December 31, 2024, the Group performed both qualitative and quantitative assessment of these investments. Based on the Group’s assessment and with the assistance of an independent appraiser, the Group recognized fair value change of RMB145,458, of which RMB65,260 was reported in net loss, due to that the investments’ amortized cost basis exceeding fair values and the Group’s current intention to sell the investments, RMB1,079 was reported in net loss, due to the fair value change related to a credit loss, and RMB79,119 of impairment loss was reported in other comprehensive income (loss), due to the fair value change associated with the non-credit losses.\n\nFor the year ended December 31, 2025, the Group performed both qualitative and quantitative assessment of these investments. Based on the Group’s assessment and with the assistance of an independent appraiser, the Group recognized fair value change of RMB120,027, of which RMB76,458 was reported in net loss, due to the fair value change related to a credit loss, and the fair value change associated with the non-credit losses amounted to RMB43,569, which was reported in other comprehensive income (loss).\n\n(iii)In 2025, the Group made an investment in equity securities of a privately-held investee company at a cash consideration of RMB24,000, over which the Group had significant influence. For the year ended December 31, 2025, the Group recognized the share of cumulative loss of this equity method investment with amount of RMB2,695.\n\n​\n\n**10.****Goodwill**\n\nGoodwill, which is not tax deductible, represents the expected synergy effects of the business combination from the global mobile application service provider. The changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2025 were as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\nBalance at the beginning of the year\n\n \n\n456,976\n\n \n\n463,796\n\nForeign currency translation adjustments\n\n \n\n6,820\n\n \n\n(10,298)\n\nBalance at the end of the year\n\n \n\n463,796\n\n \n\n453,498\n\n​\n\nDuring 2025, the Group performed a qualitative and quantitative impairment assessment for the goodwill arising from the business combination under common control of a global mobile application service provider in 2023. The Group estimated the fair value of the Acquiree based on the income approach, using a discounted cash flow model, with a cashflow forecast reflecting the Group’s best estimate at that time of the future financial performance of the business. Certain key assumptions used in the impairment assessment related to the revenue growth rate, the gross profit ratio and the discount rate, and they were determined by considering the historical performance of the Acquiree, internal forecasts, relevant industry forecasts and market developments. These factors, particularly revenue growth rate and gross profit ratio, are subject to a high degree of judgment and complexity, and are highly sensitive. Because of the lack of operating history and expected rapid growth of the Acquiree, the Company supplemented its income approach method with the use of a market-based method which considers EBITDA multiples based on market data of comparable companies engaged in similar operations and economic characteristics. As of December 31, 2025, the quantitative assessment indicated that the fair value of the Acquiree exceeded its carrying amount by 1.2%. Although the carrying value of goodwill is currently supported, the Group acknowledges that it remains subject to estimation uncertainty. Should actual operating results fall short of forecasts, an impairment charge may be required. Sensitivity analyses demonstrate that if the revenue growth rate decrease by 3%, or the gross profit ratio decrease by 1 %, or the discount rate increase by 1%, while holding other assumptions constant, could have a material effect on the consolidated financial position and results of operations. The Group will continue to monitor actual performance against forecasts to assess the recoverability of goodwill.\n\nF - 40\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**11.**Property and equipment, net\n\nProperty and equipment consists of the following:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n**Gross carrying amount**\n\n​\n\n​\n\n​\n\n​\n\nConstruction in progress\n\n \n\n415,430\n\n \n\n568,883\n\nServers, computers and equipment\n\n \n\n299,919\n\n \n\n266,752\n\nLeasehold improvements\n\n \n\n33,474\n\n \n\n33,551\n\nOthers\n\n \n\n12,104\n\n \n\n11,539\n\nTotal\n\n \n\n760,927\n\n \n\n880,725\n\n**Less: accumulated depreciation**\n\n \n\n​\n\n \n\n​\n\nServers, computers and equipment\n\n​\n\n(234,495)\n\n​\n\n(232,536)\n\nLeasehold improvements\n\n​\n\n(31,403)\n\n​\n\n(32,594)\n\nOthers\n\n​\n\n(11,021)\n\n​\n\n(11,227)\n\nTotal\n\n​\n\n(276,919)\n\n​\n\n(276,357)\n\n**Property and equipment, net**\n\n \n\n484,008\n\n \n\n604,368\n\n​\n\nDepreciation expense for the years ended December 31, 2023, 2024 and 2025 were RMB46,803, RMB39,945 and RMB35,475, respectively.\n\n​\n\n**12.**Intangible assets, net\n\nThe following table summarizes the Group’s intangible assets:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n**Gross carrying amount**\n\n​\n\n​\n\n​\n\n​\n\nPlatform content\n\n \n\n127,954\n\n \n\n125,113\n\nLicensed copyrights of video content\n\n \n\n55,094\n\n \n\n37,076\n\nTrademark\n\n​\n\n39,536\n\n​\n\n38,658\n\nLicense\n\n​\n\n32,000\n\n​\n\n32,000\n\nSoftware\n\n​\n\n11,503\n\n​\n\n13,306\n\nTechnology and domain name\n\n \n\n13,745\n\n \n\n13,553\n\nTotal of gross carrying amount\n\n \n\n279,832\n\n​\n\n259,706\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Less: accumulated amortization**\n\n​\n\n​\n\n​\n\n​\n\nPlatform content\n\n \n\n(53,314)\n\n​\n\n(70,003)\n\nLicensed copyrights of video content\n\n \n\n(31,661)\n\n​\n\n(11,717)\n\nTrademark\n\n​\n\n(10,483)\n\n​\n\n(13,764)\n\nLicense\n\n​\n\n(14,222)\n\n​\n\n(16,356)\n\nTechnology and domain name\n\n \n\n(9,609)\n\n​\n\n(11,919)\n\nSoftware\n\n​\n\n(7,353)\n\n​\n\n(8,314)\n\nTotal accumulated amortization\n\n \n\n(126,642)\n\n​\n\n(132,073)\n\n**Intangible assets, net**\n\n \n\n153,190\n\n​\n\n127,633\n\n​\n\nAmortization expense for the years ended December 31, 2023, 2024 and 2025 were RMB54,320, RMB36,555 and RMB39,545, respectively.\n\n​\n\nF - 41\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**12.**Intangible assets, net (continued)\n\nAs of December 31, 2025, intangible assets amortization expense arising from above intangible assets for future years is expected to be as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Amortization expense**\n\n**Years ended December 31, **\n\n**  ​ ​ ​**\n\n**of intangible assets**\n\n​\n\n​\n\nRMB\n\n2026\n\n \n\n38,699\n\n2027\n\n \n\n35,763\n\n2028\n\n \n\n26,563\n\n2029\n\n \n\n7,743\n\n2030\n\n \n\n6,006\n\n​\n\n​\n\n​\n\n**13.**Prepayments and other non-current assets\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\nRefundable lease deposits\n\n \n\n6,109\n\n​\n\n4,739\n\nPrepayments to vendors and content providers\n\n \n\n47,333\n\n​\n\n2,039\n\nInterest receivables\n\n \n\n74,656\n\n​\n\n—\n\nOthers\n\n \n\n164\n\n​\n\n2,065\n\n**Total**\n\n \n\n128,262\n\n​\n\n8,843\n\n​\n\n​\n\n**14.**Advances from customers and deferred revenue\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\nDeferred revenue, current\n\n \n\n263,603\n\n \n\n222,724\n\nAdvances from customers\n\n \n\n2,025\n\n \n\n5,443\n\n**Total current advances from customers and deferred revenue**\n\n \n\n265,628\n\n \n\n228,167\n\nDeferred revenue, non-current\n\n \n\n35,786\n\n \n\n31,824\n\n**Total non-current** **deferred revenue**\n\n \n\n35,786\n\n \n\n31,824\n\n​\n\n​\n\n**15.**Accrued liabilities and other current liabilities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**December 31, **\n\n​\n\n​\n\n**2024**\n\n​\n\n**2025**\n\n​\n\n  ​ ​ ​\n\nRMB\n\n  ​ ​ ​\n\nRMB\n\nBroadcasters cost and revenue sharing fees\n\n \n\n778,407\n\n​\n\n570,483\n\nSalaries and welfare\n\n \n\n169,022\n\n​\n\n170,420\n\nPayable for construction in progress\n\n \n\n72,090\n\n​\n\n62,124\n\nMarketing and promotion expenses\n\n​\n\n58,877\n\n​\n\n53,013\n\nLicense fees and content cost\n\n​\n\n74,590\n\n​\n\n44,611\n\nOther taxes payable\n\n​\n\n34,652\n\n​\n\n41,783\n\nBandwidth and server custody fees\n\n​\n\n44,096\n\n​\n\n32,014\n\nDeposits from content providers, suppliers and advertising customers\n\n \n\n41,400\n\n​\n\n5,630\n\nOthers\n\n \n\n87,815\n\n​\n\n52,359\n\n**Total**\n\n \n\n1,360,949\n\n​\n\n1,032,437\n\n​\n\n​\n\nF - 42\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**16.**Cost of revenues\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n​\n\n**2023**\n\n​\n\n**2024**\n\n​\n\n**2025**\n\n​\n\n  ​ ​ ​\n\nRMB\n\n  ​ ​ ​\n\nRMB\n\n  ​ ​ ​\n\nRMB\n\nRevenue sharing fees and content costs\n\n \n\n5,378,413\n\n \n\n4,619,735\n\n​\n\n4,872,318\n\nSalary and welfare\n\n​\n\n241,243\n\n​\n\n233,669\n\n​\n\n222,454\n\nCosts of in-game virtual items\n\n​\n\n10,283\n\n​\n\n15,762\n\n​\n\n197,918\n\nBandwidth and server custody fees\n\n \n\n360,660\n\n \n\n237,441\n\n​\n\n179,189\n\nPayment handling costs\n\n \n\n64,665\n\n​\n\n42,303\n\n​\n\n42,628\n\nShare-based compensation\n\n \n\n16,137\n\n​\n\n15,566\n\n​\n\n12,091\n\nOthers\n\n \n\n107,724\n\n​\n\n105,185\n\n​\n\n103,669\n\n**Total**\n\n \n\n6,179,125\n\n​\n\n5,269,661\n\n​\n\n5,630,267\n\n​\n\n​\n\n**17.**Other income, net\n\nOther income is primarily comprised of gains recognized for government grants which represent cash subsidies received from the PRC government and compensation related to live streaming broadcasters who breached the arrangement clause. For the years ended December 31, 2023, 2024 and 2025, the Company recognized government grants as other income amounting to RMB41,551, RMB27,992 and RMB19,895, respectively.\n\n​\n\n**18.**Taxation\n\n**(a)**PRC value-added tax and related surcharges\n\nThe Group is subject to value-added tax (“VAT”) and related surcharges on the revenues earned for services provided in the PRC. Net revenues are presented after netting off the VAT. The primary applicable rate of VAT is 6% for the years ended December 31, 2023, 2024 and 2025. All entities in PRC are also subject to surcharges on value-added tax payments in accordance with PRC law.\n\n**(b)**Income taxes\n\n(i)Cayman Islands\n\nUnder the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed.\n\n(ii)Hong Kong\n\nSubsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. The payments of dividends by these companies to their shareholders are not subject to any withholding tax in Hong Kong. For the years ended December 31, 2023, 2024 and 2025, the first HK$2 million of profits earned by the Company’s subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e. 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate.\n\n(iii)Singapore\n\nThe income tax provision of the Group in respect of its international operations was calculated at the tax rate of 17% on the assessable profits based on the existing legislation, interpretations and practices in respect thereof.\n\n​\n\nF - 43\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**18.**Taxation (continued)\n\n**(b)**Income taxes (continued)\n\n(iv)PRC\n\nIn accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The Group’s PRC entities are subject to a uniform income tax rate of 25% for years presented.\n\nCertified High and New Technology Enterprises (“HNTE”) are entitled to a preferential tax rate of 15%, but need to re-apply every three years. During this three-year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification as an HNTE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year, and must instead use the regular 25% EIT rate.\n\nAn entity registered in Hainan Free Trade Port (“FTP”) and operating substantially that qualifies as an “Encouraged Industrial Enterprises” (an “EIE”) is entitled to a preferential income tax rate of 15% for eight years since January 1, 2020. Entities must perform a self-assessment each year to ensure they meet the criteria for qualification, pursuant to SAT Public Notice 2020 No.31 (“Circular 31”). According to Hainan Provincial Tax Bureau Public Notice 2021 No.1 (“Circular 1”), enterprises set up in Hainan FTP without any branches outside shall have substantive operations in Hainan FTP, which means that such enterprises shall maintain actual business operation, human resources, finance management as well as assets solely in Hainan FTP in order to enjoy the preferential tax rate. If an EIE fails to meet the criteria for qualification as an EIE or requirement of substantive VIE operations in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year and must instead use the regular 25% EIT rate.\n\nThe Group’s PRC entities provided for enterprise income tax are as follows:\n\n●Huya Technology renewed its HNTE qualification in 2025 and with a continued preferential income tax rate of 15% from 2025 to 2027.\n\n●Guangzhou Huya renewed its HNTE qualification in 2024 and with a continued preferential income tax rate of 15% from 2024 to 2026.\n\n●Hainan Huya was qualified as an EIE in Hainan free trade port, and enjoyed the preferential tax rate of 15% for eight years starting from 2020.\n\n●Most of the remaining PRC subsidiaries and VIEs were subject to 25% EIT for the years presented.\n\n​\n\nF - 44\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**18.**Taxation (continued)\n\n**(b)**Income taxes (continued)\n\n(iv)PRC (continued)\n\nAccording to a new tax incentives policy promulgated by the State Tax Bureau of the PRC on March 26, 2023 (“Super Deduction”), the additional tax deduction amount for qualified research and development expenses was increased from 75% to 100%, effective from 2023.\n\nThe EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its entities registered outside of the PRC should be considered as resident enterprises for the PRC tax purposes.\n\nThe EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between the mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a standard rate of 5% (if the immediate holding company in Hong Kong is the beneficial owner of the FIE and owns directly at least 25% of the shares of the FIE). In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and withholding taxes should be accrued accordingly. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends will be re-invested and the remittance of the dividends will be postponed indefinitely.\n\nAggregate undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2024 and 2025 are approximately RMB2,360,401 and RMB2,184,195 respectively. The undistributed earnings and reserves of the Group entities located in the PRC are considered to be indefinitely reinvested, because the Group does not have any present plan to pay any cash dividends from the undistributed earnings or reserves of the Group entities located in the PRC on its ordinary shares in the foreseeable future and intends to retain its available funds and any future earnings for use in the operation and expansion of its business.\n\nAccordingly, no deferred tax liability on 10% WHT of aggregate undistributed earnings and reserves of the Company’s entities located in the PRC had been accrued that would be payable upon the distribution of those amounts to the Company as of December 31, 2024 and 2025.\n\n​\n\nF - 45\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**18.**Taxation (continued)\n\n**(b)****Income taxes (continued)**\n\nComposition of income tax expenses (benefits)\n\nLoss before income tax expenses for the years ended December 31, 2023, 2024 and 2025 were taxed within the following jurisdictions:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n​\n\n**2023**\n\n​\n\n**2024**\n\n​\n\n**2025**\n\n​\n\n**  ​ ​ ​**\n\nRMB\n\n**  ​ ​ ​**\n\nRMB\n\n**  ​ ​ ​**\n\nRMB\n\nPRC entities\n\n \n\n(406,503)\n\n \n\n(233,630)\n\n \n\n(260,092)\n\nNon-PRC entities\n\n \n\n215,199\n\n \n\n199,175\n\n \n\n163,002\n\n**Total**\n\n \n\n(191,304)\n\n \n\n(34,455)\n\n \n\n(97,090)\n\n​\n\nThe current and deferred portion of income tax expenses included in the consolidated statements of comprehensive income for the years ended December 31, 2023, 2024 and 2025 are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n​\n\n**2023**\n\n​\n\n**2024**\n\n​\n\n**2025**\n\n​\n\n**  ​ ​ ​**\n\nRMB\n\n**  ​ ​ ​**\n\nRMB\n\n**  ​ ​ ​**\n\nRMB\n\n**Income tax expenses applicable to China operations**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\nCurrent income tax expenses\n\n \n\n—\n\n \n\n518\n\n \n\n390\n\nDeferred income tax expenses\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\n**Subtotal income tax expenses applicable to China operations**\n\n \n\n—\n\n \n\n518\n\n \n\n390\n\n**Income tax expenses applicable to Non-PRC operations**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\nCurrent income tax expenses\n\n \n\n17,222\n\n \n\n17,023\n\n \n\n16,475\n\nDeferred income tax benefits\n\n \n\n(4,007)\n\n \n\n(4,041)\n\n \n\n(4,059)\n\n**Subtotal income tax expenses applicable to Non-PRC operations**\n\n \n\n13,215\n\n \n\n12,982\n\n \n\n12,416\n\n**Total income tax expenses**\n\n \n\n13,215\n\n \n\n13,500\n\n \n\n12,806\n\n​\n\n​\n\nF - 46\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**18.**Taxation (continued)\n\n**(b)****Income taxes (continued)**\n\nReconciliation of the differences between statutory tax rate and the effective tax rate\n\nAfter the prospective adoption of ASU 2023-09 for the year ended December 31, 2025, the reconciliation of the Group’s reported income tax expense to the theoretical tax amount that would arise using the statutory tax rate of the Company against the Group’s income before income taxes is as follows.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the year ended**\n\n \n\n​\n\n​\n\n**December 31, 2025**\n\n \n\n​\n\n  ​ ​ ​\n\n**Amount**\n\n  ​ ​ ​\n\n**Percent**\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPRC Statutory income tax rate\n\n \n\n(24,273)\n\n \n\n25.0\n\n%\n\nForeign Tax Effects\n\n \n\n​\n\n \n\n  ​\n\n​\n\nSingapore\n\n \n\n​\n\n \n\n  ​\n\n​\n\nStatutory tax rate difference between Singapore and PRC\n\n \n\n(2,847)\n\n \n\n2.9\n\n%\n\nOthers\n\n \n\n54\n\n \n\n(0.1)\n\n%\n\n​\n\n \n\n​\n\n \n\n​\n\n​\n\nHong Kong\n\n​\n\n​\n\n​\n\n​\n\n​\n\nStatutory tax rate difference between Hong Kong and PRC\n\n \n\n(7,282)\n\n \n\n7.5\n\n%\n\nNon-taxable income\n\n \n\n(13,493)\n\n \n\n13.9\n\n%\n\nOthers\n\n \n\n(1)\n\n \n\n0.0\n\n%\n\n​\n\n \n\n​\n\n \n\n​\n\n​\n\nCayman Islands\n\n​\n\n​\n\n​\n\n​\n\n​\n\nStatutory tax rate difference between Cayman Islands and PRC\n\n \n\n(10,437)\n\n \n\n10.8\n\n%\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nUnited States\n\n​\n\n​\n\n​\n\n​\n\n​\n\nWithholding tax\n\n \n\n4,059\n\n \n\n(4.2)\n\n%\n\n​\n\n \n\n​\n\n \n\n​\n\n​\n\nChanges in valuation allowances\n\n​\n\n72,032\n\n​\n\n(74.1)\n\n%\n\nNontaxable or Nondeductible items\n\n \n\n​\n\n \n\n​\n\n​\n\nEffect of preferential tax benefits\n\n \n\n12,582\n\n \n\n(13.0)\n\n%\n\nEffect of Super Deduction available to the Group\n\n \n\n(54,855)\n\n \n\n56.5\n\n%\n\nPermanent differences\n\n \n\n35,650\n\n \n\n(36.7)\n\n%\n\nOther Adjustments\n\n \n\n​\n\n \n\n  ​\n\n​\n\nWithholding tax\n\n \n\n1,612\n\n \n\n(1.7)\n\n%\n\nOthers\n\n \n\n5\n\n \n\n0.0\n\n%\n\nIncome tax expense\n\n \n\n12,806\n\n \n\n(13.2)\n\n%\n\n(i)Income taxes paid (net of refunds) by jurisdiction for the year ended December 31, 2025 is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the year ended**\n\n​\n\n​\n\n**December 31, 2025**\n\n​\n\n​\n\n​\n\nPRC\n\n \n\n6,057\n\nOthers\n\n \n\n59\n\nTotal\n\n \n\n6,116\n\n​\n\nF - 47\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**18.**Taxation (continued)\n\n**(b)**Income taxes (continued)\n\nReconciliation of the differences between statutory tax rate and the effective tax rate (Continued)\n\nThe reconciliation between the statutory income tax rate and the effective tax rate for years ended December 31, 2023, 2024 and is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**For the years ended December 31, **\n\n​\n\n​\n\n  ​ ​ ​\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n​\n\nPRC Statutory income tax rate\n\n  ​ ​ ​\n\n25.0\n\n%  \n\n25.0\n\n%\n\nEffect of tax holiday and preferential tax benefits\n\n \n\n(19.1)\n\n%  \n\n(42.9)\n\n%\n\nEffect of varying tax rates available in different jurisdictions (i)\n\n \n\n22.8\n\n%  \n\n64.8\n\n%\n\nPermanent differences (ii)\n\n \n\n(10.3)\n\n%  \n\n10.5\n\n%\n\nChange in valuation allowance\n\n \n\n(58.7)\n\n%  \n\n(241.8)\n\n%\n\nEffect of Super Deduction available to the Group\n\n \n\n33.4\n\n%  \n\n145.2\n\n%\n\nEffective income tax rate\n\n \n\n(6.9)\n\n%  \n\n(39.2)\n\n%\n\nEffect of tax holidays inside the PRC on basic earnings per share/ADS (RMB)\n\n \n\n0.28\n\n​\n\n0.19\n\n​\n\n(i)For the years ended December 31, 2023 and 2024, the effect of varying tax rates in different jurisdictions is mainly driven by the interest income derived from short-term deposits and long-term deposits which are subject to an income tax rate of 0% under the tax laws of Cayman Islands, partially offset by the loss arising from overseas business which is subject to an income tax rate of 17% under the tax laws of Singapore for 2023, while the impact was not material in for 2024\n\n​\n\n(ii)Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs.\n\n​\n\nF - 48\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**18.**Taxation (continued)\n\n**(b)**Income taxes (continued)\n\nDeferred tax assets and liabilities\n\nDeferred taxes are measured using the enacted tax rates for the years in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2024 and 2025 are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**December 31, **\n\n​\n\n​\n\n**2024**\n\n​\n\n**2025**\n\n​\n\n**  ​ ​ ​**\n\nRMB\n\n**  ​ ​ ​**\n\nRMB\n\nTax loss carried forwards\n\n \n\n455,210\n\n \n\n503,635\n\nImpairment loss of investments\n\n \n\n47,920\n\n \n\n65,943\n\nUnrealized profit arising from elimination of inter-company transactions\n\n \n\n4,478\n\n \n\n33\n\nDeferred revenue\n\n \n\n1,856\n\n \n\n2,120\n\nOthers (i)\n\n \n\n2,557\n\n \n\n12,757\n\n​\n\n \n\n512,021\n\n \n\n584,488\n\nLess: Valuation allowance (ii)\n\n \n\n(512,021)\n\n \n\n(584,488)\n\n**Total deferred tax assets**\n\n \n\n—\n\n \n\n—\n\n**Deferred tax liabilities**\n\n \n\n  ​\n\n \n\n  ​\n\nIdentifiable intangible assets arising from the Acquisition\n\n​\n\n(18,025)\n\n​\n\n(13,575)\n\nUnrealized gains on investments\n\n \n\n(5,380)\n\n \n\n(5,357)\n\n**Total deferred tax liabilities**\n\n \n\n(23,405)\n\n \n\n(18,932)\n\n**Net deferred tax liabilities**\n\n \n\n(23,405)\n\n \n\n(18,932)\n\n(i)Others primarily include the expected credit loss provision as of December 31, 2025, which mainly arose from the other receivable of a 2021 arrangement with a broadcaster (Note 8).\n\n(ii)Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including operating losses incurred in recent periods, future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowances as of December 31, 2024 and 2025 were provided for net operating loss carry forwards, because such deferred tax assets are not more likely than not to be realized based on the Group’s estimate of the future taxable income to be derived by the subsidiaries. If events including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry forwards; and (iii) tax planning strategies occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur.\n\nMovement of valuation allowance\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nBalance at beginning of the year\n\n​\n\n316,469\n\n​\n\n428,709\n\n​\n\n512,021\n\nAdditions\n\n​\n\n114,815\n\n​\n\n85,458\n\n​\n\n96,078\n\nReversals\n\n​\n\n(2,575)\n\n​\n\n(2,146)\n\n​\n\n(654)\n\nExpiration of loss carry forward and impact of close of subsidiaries\n\n​\n\n—\n\n​\n\n—\n\n​\n\n(22,957)\n\nBalance at end of the year\n\n​\n\n428,709\n\n​\n\n512,021\n\n​\n\n584,488\n\n​\n\n​\n\nF - 49\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**18.**Taxation (continued)\n\n**(b)**Income taxes (continued)\n\nTax loss carry forwards\n\nAs of December 31, 2025, total tax losses carried forward of the Company’s subsidiaries and VIEs in the PRC amounted to RMB2,106,255 which were expected to expire if not utilized between 2026 and 2035. The accumulated tax losses of a subsidiary incorporated in Singapore of RMB937,292 subject to the agreement of the relevant tax authorities, is allowed to be carried forward to offset against future taxable profits. Such carried forward tax losses in Singapore have no time limit.\n\nIn accordance with Singapore Tax Administration Law, the Singapore tax authorities generally have up to four years to claw back underpaid tax if the year of assessment is 2008 onwards. Accordingly, tax filings of the Group’s Singapore subsidiary for tax years 2021 through 2024 remain subject to the review by the relevant Singapore tax authorities. There were no ongoing tax examinations as of December 31, 2025 by Singapore tax authorities.\n\nIn accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities’ tax filings from 2021 through 2025 remain open to examination by the respective tax authorities.\n\nUncertain tax positions\n\nThe Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2025, the Group did not have any significant unrecognized uncertain tax positions.\n\n​\n\n**19.**Ordinary shares\n\nDuring the year ended December 31, 2023, 2,454,365 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, no Class B ordinary shares were converted to Class A ordinary shares.\n\nAs of December 31, 2023, 82,696,852 Class A ordinary shares and 150,386,517 Class B ordinary shares had been issued and outstanding, respectively.\n\nDuring the year ended December 31, 2024, 2,043,276 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, no Class B ordinary shares were converted to Class A ordinary shares.\n\nAs of December 31, 2024, 74,845,398 Class A ordinary shares and 150,386,517 Class B ordinary shares had been issued and outstanding, respectively.\n\nDuring the year ended December 31, 2025, 2,151,869 Class A ordinary shares were issued for the vested restricted share units. Besides, no Class B ordinary shares were converted to Class A ordinary shares.\n\nAs of December 31, 2025, 73,146,779 Class A ordinary shares and 150,386,517 Class B ordinary shares had been issued and outstanding, respectively.\n\n​\n\nF - 50\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**19.****Ordinary shares (continued)**\n\nIn August, 2023, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$100 million of its ADSs or ordinary shares over a 12-month period. In August 2024, the Board authorized an extension of the expiry date of the share repurchase program to March 31, 2025. In March 2025, the Board has authorized another extension of the share repurchase program to March 31, 2026. During the years ended December 31, 2023, 2024 and 2025, the Company had repurchased 9,158,997 ADSs, 9,894,730 ADSs and 3,850,488 ADSs with an aggregate of US$29 million (equivalent to RMB206,345), US$35 million (equivalent to RMB248,332) and US$12 million (equivalent to RMB85,980) under this program, of which RMB202,422, RMB247,890 and RMB90,345 has been paid.\n\n​\n\n**20.**Share-based compensation\n\nCompensation expense recognized for share-based awards granted by Huya was RMB74,525, RMB54,622 and RMB68,160 respectively during the years ended December 31, 2023, 2024 and 2025.\n\nCompensation expense recognized for share-based awards granted by Tencent was RMB3,740, RMB9,898 and RMB5,432 respectively during the years ended December 31, 2023, 2024 and 2025.\n\nThere was no capitalized share-based compensation expense for the years presented.\n\nHuya 2017 Share Incentive Plan\n\nOn July 10, 2017, the Board of Directors of the Company approved the establishment of the Huya 2017 Share Incentive Plan for the purpose of providing incentives for employees contributing to the Group. The plan shall be valid and effective for 10 years from the establishment date. The maximum number of shares that may be issued pursuant to all awards under the plan shall be 17,647,058 shares. On March 31, 2018, the Board of Directors approved to increase the maximum number of shares, that may be issued, from 17,647,058 shares to 28,394,117 shares, including incentive share options and restricted share units.\n\nHuya 2021 Share Incentive Plan\n\nOn June 10, 2021, the Board of Directors of the Company approved the establishment of the Huya 2021 Share Incentive Plan for the purpose of providing incentives for employees with outstanding performance to generate superior returns to the Group. The plan shall be valid and effective for 10 years from the establishment date. The maximum number of shares that may be issued pursuant to all awards under the plan shall be 3,530,111 shares, which shall be solely in the form of restricted share units. On August 11, 2022, the Board of Directors of the Company approved the amendment and restatement in its previously adopted 2021 Share Incentive Plan. The maximum aggregate number of Class A ordinary shares of the Company available for grant of awards was increased from 3,530,111 under the original 2021 Share Incentive Plan to 8,018,111 under the Amended and Restated 2021 Share Incentive Plan. Other terms of the original 2021 Share Incentive Plan remain substantially the same.\n\nHuya 2024 Share Incentive Plan\n\nOn December 17, 2024, the Board of Directors of the Company approved the establishment of the Huya 2024 Share Incentive Plan for the purpose of providing incentives for employees with outstanding performance to generate superior returns to the Group. The plan shall be valid and effective for 10 years from the establishment date. The maximum number of shares that may be issued pursuant to all awards under the plan shall be 15,846,000 shares, including incentive share options and restricted share units.\n\n​\n\nF - 51\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**20.**Share-based compensation (continued)\n\n*(i)**Options*\n\nGrant of options\n\nDuring the years ended December 31, 2023, 2024, no share options had been granted to employees or non-employees.\n\nDuring the year ended December 31, 2025, the company granted 4,562,919 share options to employees.\n\nVesting of options\n\nThere are mainly four types of vesting schedule, which are: i) 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, ii) options will be vested in four equal installments over the following 48 months, iii) options will be vested in four equal installments over the following 24 months and iv) 25% of the options will be vested after 10 months and the remaining 75% will be vested in three equal installments over the following 36 months.\n\nThese options shall (i) be exercisable during its term cumulatively according to the vesting schedule set out in the grant notice and with the applicable provisions of Huya 2017 Share Incentive Plan and Huya 2024 Share Incentive Plan, provided that the performance conditions otherwise agreed by the parties (if any) to which the option is subject have been fulfilled upon each corresponding vesting date; (ii) be deemed vested and exercisable immediately in the event of a change of control, regardless of the vesting schedule; (iii) be exercisable upon any arrangement as otherwise agreed by the parties based on their discussion in good faith.\n\nMovements in the number of share options granted and their related weighted average exercise prices are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Weighted**\n\n**  ​ ​ ​**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Weighted**\n\n​\n\n**average**\n\n​\n\n**Aggregate**\n\n​\n\n​\n\n​\n\n​\n\n**average**\n\n​\n\n**remaining**\n\n​\n\n**intrinsic**\n\n​\n\n​\n\n**Number of**\n\n​\n\n**exercise**\n\n​\n\n**contractual life**\n\n​\n\n**value **\n\n​\n\n​\n\n**options**\n\n​\n\n**price (US$)**\n\n​\n\n**(years)**\n\n​\n\n**(US$)**\n\nAs of December 31, 2022\n\n \n\n126,002\n\n \n\n2.5500\n\n \n\n4.60\n\n \n\n176\n\nForfeited\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\nExercised\n\n \n\n(7,000)\n\n \n\n2.5500\n\n \n\n—\n\n \n\n—\n\nAs of December 31, 2023\n\n \n\n119,002\n\n \n\n2.5500\n\n \n\n3.60\n\n \n\n132\n\nForfeited\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\nExercised\n\n \n\n(37,502)\n\n \n\n2.5500\n\n \n\n—\n\n \n\n—\n\nAs of December 31, 2024\n\n \n\n81,500\n\n \n\n2.5500\n\n \n\n2.60\n\n \n\n42\n\nGranted\n\n​\n\n4,562,919\n\n​\n\n2.3000\n\n​\n\n—\n\n​\n\n—\n\nForfeited\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\nExercised\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\n \n\n—\n\nAs of December 31, 2025\n\n \n\n4,644,419\n\n \n\n2.3044\n\n \n\n9.49\n\n \n\n2,673\n\nUnvested at December 31, 2025\n\n​\n\n4,562,919\n\n​\n\n2.3000\n\n​\n\n9.64\n\n​\n\n2,646\n\nVested and exercisable as of December 31, 2025\n\n​\n\n81,500\n\n​\n\n2.5500\n\n​\n\n1.60\n\n​\n\n27\n\n​\n\n​\n\nF - 52\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**20.**Share-based compensation (continued)\n\n*(i)**Options (continued)*\n\nPrior to the completion of the IPO and during the year of 2025, the Company has used the binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions used were as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**2018**\n\n \n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\nWeighted average fair value per option granted\n\n**  ​ ​ ​**\n\nUS$\n\n5.2130\n\n​\n\n​\n\nUS$\n\n1.7740\n\n​\n\nWeighted average exercise price\n\n​\n\nUS$\n\n2.47\n\n​\n\n​\n\nUS$\n\n2.30\n\n​\n\nRisk-free interest rate(1)\n\n​\n\n​\n\n2.83\n\n%\n\n​\n\n​\n\n4.52\n\n%\n\nExpected term (in year)(2)\n\n​\n\n​\n\n10\n\n​\n\n​\n\n​\n\n10\n\n​\n\nExpected volatility(3)\n\n​\n\n​\n\n55\n\n%\n\n​\n\n​\n\n62\n\n%\n\nDividend yield(4)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n​\n\n2.47\n\n%\n\n(1)The risk-free interest rate of periods within the contractual life of the share option is based on the China Government Bond yield for the year of 2018 and US Government Bond yield for the year of 2025 as at the valuation dates.\n\n(2)The expected term is the contract life of the option.\n\n(3)Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.\n\n(4)The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option.\n\nFor the years ended December 31, 2023, 2024 and 2025, the Group recorded share-based compensation in general and administrative expenses of nil, nil and RMB11,992 for the share options granted to employees using the graded-vesting attribution method.\n\nAs of December 31, 2025, there was no unrecognized share-based compensation expense of options relating to Huya 2017 Share Incentive Plan and there was RMB45,327 unrecognized share-based compensation expense of options related to Huya 2024 Share Incentive Plan.\n\n​\n\nF - 53\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**20.**Share-based compensation (continued)\n\n*(ii)**Restricted share units*\n\nGrant of restricted share units\n\nDuring the years ended December 31, 2023, 2024 and 2025, the Company granted 2,787,407, 2,732,585 and 4,972,103 restricted share units to employees respectively.\n\nVesting of restricted share units\n\nThere are mainly five types of vesting schedule for employees, which are: i) 50% of the restricted share units will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, ii) restricted share units will be vested in four equal installments over the following 48 months, iii) restricted share units will be vested in two equal installments over the following 24 months, iv) 25% of the restricted share units will be vested after 9 months of the grant date and the remaining 75% will be vested in three equal installments over the following 36 months, and v) 25% of the restricted share units will be vested after 10 months of the grant date and the remaining 75% will be vested in three equal installments over the following 36 months.\n\nThe following table summarizes the activity of all restricted share units for the years ended December 31, 2023, 2024 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n​\n\n**  ​ ​ ​**\n\n**Weighted**\n\n​\n\n​\n\n**Number of**  \n\n​\n\n**average**\n\n​\n\n​\n\n**restricted**\n\n​\n\n**grant-date**\n\n​\n\n​\n\n**share units**\n\n​\n\n**fair value (US$)**\n\nOutstanding, December 31, 2022\n\n​\n\n7,272,469\n\n \n\n7.8046\n\nGranted\n\n \n\n2,787,407\n\n \n\n2.8824\n\nForfeited\n\n \n\n(1,365,256)\n\n \n\n7.2654\n\nVested\n\n \n\n(3,546,222)\n\n \n\n8.5540\n\nOutstanding, December 31, 2023\n\n \n\n5,148,398\n\n \n\n4.7664\n\nGranted\n\n \n\n2,732,585\n\n \n\n4.1986\n\nForfeited\n\n \n\n(459,733)\n\n \n\n4.6775\n\nVested\n\n \n\n(3,139,694)\n\n \n\n4.7799\n\nOutstanding, December 31, 2024\n\n \n\n4,281,556\n\n \n\n4.4037\n\nGranted\n\n \n\n4,972,103\n\n \n\n1.3082\n\nForfeited\n\n \n\n(292,445)\n\n \n\n3.4153\n\nVested\n\n \n\n(3,214,736)\n\n \n\n3.0354\n\nOutstanding, December 31, 2025\n\n \n\n5,746,478\n\n \n\n2.5411\n\nExpected to vest at December 31, 2025\n\n \n\n5,473,862\n\n \n\n2.4913\n\n​\n\nFor the years ended December 31, 2023, 2024 and 2025, the Company recorded share-based compensation of RMB78,265, RMB64,520 and RMB61,600 using the graded vesting attribution method.\n\nAs of December 31, 2025, total unrecognized compensation expense relating to the restricted share units was RMB56,279. The expense is expected to be recognized over a weighted average period of 1.06 year using the graded-vesting attribution method.\n\n​\n\n​\n\nF - 54\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**21.**Net loss per share\n\nBasic and diluted net income per share for the years ended December 31, 2023, 2024 and 2025 are calculated as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n**Numerator:**\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\nNet loss attributable to ordinary shareholders\n\n \n\n(204,519)\n\n \n\n(47,955)\n\n \n\n(112,591)\n\nNumerator for basic and diluted net loss per share\n\n \n\n(204,519)\n\n \n\n(47,955)\n\n \n\n(112,591)\n\n**Denominator:**\n\n \n\n​\n\n \n\n​\n\n \n\n​\n\nDenominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding\n\n \n\n243,025,428\n\n \n\n231,533,388\n\n \n\n228,840,636\n\nDenominator for diluted calculation\n\n \n\n243,025,428\n\n \n\n231,533,388\n\n \n\n228,840,636\n\n**Net loss per ordinary share**\n\n \n\n​\n\n \n\n​\n\n \n\n​\n\n—Basic\n\n \n\n(0.84)\n\n \n\n(0.21)\n\n \n\n(0.49)\n\n—Diluted\n\n \n\n(0.84)\n\n \n\n(0.21)\n\n \n\n(0.49)\n\n**Net loss per ADS***\n\n \n\n​\n\n \n\n​\n\n \n\n​\n\n—Basic\n\n \n\n(0.84)\n\n \n\n(0.21)\n\n \n\n(0.49)\n\n—Diluted\n\n \n\n(0.84)\n\n \n\n(0.21)\n\n \n\n(0.49)\n\n*Each ADS represents one Class A ordinary share.\n\nThe share options and restricted share units were excluded in the computation of diluted loss per share for the years ended December 31, 2023, 2024 and 2025 because the inclusion of such share awards would be anti - dilutive.\n\n​\n\n**22.**Related party transactions\n\nFor the years ended December 31, 2023, 2024 and 2025, significant related party transactions were as follows:\n\nTransactions with Tencent\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nAdvertising, game distribution and other revenues from Tencent\n\n​\n\n118,844\n\n​\n\n651,495\n\n​\n\n478,152\n\nContent costs charged by Tencent (i)\n\n​\n\n249,536\n\n​\n\n217,527\n\n​\n\n346,421\n\nOperation support services provided by Tencent\n\n \n\n142,372\n\n \n\n104,318\n\n \n\n85,256\n\nAcquisition under common control (ii)\n\n​\n\n574,826\n\n​\n\n—\n\n​\n\n—\n\nOthers\n\n​\n\n6,422\n\n​\n\n6,422\n\n​\n\n6,217\n\n(i)In April 2021, the Group entered into a related party transaction with a fellow subsidiary of Tencent to purchase an exclusive license for broadcasting League of Legends tournaments during the period from 2021 to 2025, with a total consideration of RMB2,013 million. In January 2023, September 2024 and August 2025, the Group has entered into supplemental agreements to the above-mentioned agreement with Tencent to update the authorised right, licensed scope and total consideration respectively.\n\n(ii)In December 2023, the Company acquired a global mobile application service provider from a fellow subsidiary of Tencent for an aggregate cash consideration of RMB574,826, of which RMB546,084 was paid by the Company in 2023 and the remaining balance of RMB28,770 was paid in February 2024.\n\n​\n\nF - 55\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**22.**Related party transactions (continued)\n\n*Transactions with entities over which Tencent and/or Huya have significant influence (“Tencent and Huya’s related parties”)*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nContent costs and revenue sharing fees charged by Tencent and Huya’s related parties\n\n \n\n61,272\n\n \n\n38,069\n\n \n\n29,454\n\nAdvertising and other revenues from Tencent and Huya’s related parties\n\n \n\n23,902\n\n \n\n17,575\n\n \n\n8,566\n\nOthers\n\n \n\n29,178\n\n \n\n1,810\n\n \n\n11,358\n\n​\n\nAs of December 31, 2024 and 2025, the amounts due from/to related parties are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n**Prepaid assets and amounts due from related parties, net**\n\n \n\n  ​\n\n \n\n  ​\n\nTencent\n\n \n\n202,157\n\n \n\n286,867\n\nOthers\n\n \n\n5,710\n\n \n\n4,138\n\nLess: credit loss provision\n\n \n\n(302)\n\n \n\n(258)\n\nTotal\n\n \n\n207,565\n\n \n\n290,747\n\n**Amounts due to related parties**\n\n \n\n  ​\n\n \n\n  ​\n\nTencent\n\n \n\n142,662\n\n \n\n123,394\n\nOthers\n\n \n\n18,867\n\n \n\n26,772\n\nTotal\n\n \n\n161,529\n\n \n\n150,166\n\n​\n\nThe following table presents the movements of the credit loss provision related to amounts due from related parties for the years ended December 31, 2023, 2024 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**For the years ended**\n\n​\n\n​\n\n**December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nBalance at beginning of the year\n\n \n\n(302)\n\n \n\n(217)\n\n \n\n(302)\n\nCurrent year provision\n\n \n\n(219)\n\n \n\n(100)\n\n \n\n(67)\n\nCurrent year reversal\n\n \n\n304\n\n \n\n15\n\n \n\n111\n\nBalance at end of the year\n\n \n\n(217)\n\n \n\n(302)\n\n \n\n(258)\n\n​\n\nThe other receivables/payables from/to related parties are unsecured, interest-free and payable on demand.\n\n​\n\nF - 56\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**23.**Fair value measurements\n\nFair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities.\n\nThe Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:\n\nLevel 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured.\n\nLevel 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques.\n\nLevel 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.\n\nThe fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.\n\nWhen available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates.\n\nThe following table sets forth the financial instruments measured or disclosed at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2024 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**As of December 31, 2024**\n\n​\n\n​\n\n**Level 1**\n\n**  ​ ​ ​**\n\n**Level 2**\n\n**  ​ ​ ​**\n\n**Level 3**\n\n**  ​ ​ ​**\n\n**Total**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n**Assets**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAvailable-for-sale debt investments (i)\n\n \n\n—\n\n \n\n—\n\n \n\n283,054\n\n \n\n283,054\n\n​\n\n​\n\nF - 57\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**23.**Fair value measurements (continued)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**As of December 31, 2025**\n\n​\n\n**  ​ ​ ​**\n\n**Level 1**\n\n**  ​ ​ ​**\n\n**Level 2**\n\n**  ​ ​ ​**\n\n**Level 3**\n\n**  ​ ​ ​**\n\n**Total**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n**Assets**\n\n \n\n​\n\n \n\n​\n\n \n\n​\n\n \n\n​\n\nAvailable-for-sale debt investments (i)\n\n \n\n—\n\n \n\n—\n\n \n\n163,027\n\n \n\n163,027\n\n(i)Available-for-sale debt investments are investments made by the Group without readily determinable fair values as set out in Note 9, which were categorized as Level 3 in the fair value hierarchy. These investments were valued based on a model utilizing unobservable inputs requiring significant management judgment and estimation. The Company uses a combination of valuation methodologies, including income approaches based on the Company’s best estimate, which is determined by using information including but not limited to future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies.\n\nManagement determined the fair value of Level 3 investments based on income approach using various unobservable inputs. The determination of the fair value required significant judgement by management with respect to the assumptions and estimates for risk-free rate, weighted average cost of capital and probability in equity allocation for income approach.\n\nFor the year ended December 31, 2024, the Company recognized credit impairment and non - credit losses with aggregated amounts of RMB66,339 and RMB79,119 respectively related to these available - for - sale debt investments.\n\nFor the year ended December 31, 2025, the Company recognized credit impairment and non - credit losses with aggregated amounts of RMB76,458 and RMB43,569 respectively related to these available - for - sale debt investments.\n\nThe roll forward of Level 3 investments are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Total**\n\nFair value of Level 3 investments as at December 31, 2023\n\n \n\n428,512\n\nNew additions\n\n \n\n—\n\nRecognised in net loss\n\n​\n\n(66,339)\n\nRecognised in other comprehensive income (loss)\n\n​\n\n(79,119)\n\nFair value of Level 3 investments as at December 31, 2024\n\n \n\n283,054\n\nNew additions\n\n \n\n—\n\nRecognised in net loss\n\n​\n\n(76,458)\n\nRecognised in other comprehensive income (loss)\n\n​\n\n(43,569)\n\nFair value of Level 3 investments as at December 31, 2025\n\n \n\n163,027\n\n​\n\n​\n\nF - 58\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**23.**Fair value measurements (continued)\n\nFair value measurement on a non-recurring basis\n\nThe Group measures investments without readily determinable fair value on a non-recurring basis when impairment charges and fair value change due to observable price change are recognized.\n\nAn observable price change is usually resulting from new rounds of financing of the investees. The Group determines whether the securities offered in new rounds of financing are similar to the equity securities held by the Group by comparing the rights and obligations of the securities. When the securities offered in new rounds of financing are determined to be similar to the securities held by the Group, the Group adjusts the observable price of the similar security to determine the amount that should be recorded as an adjustment in the carrying value of the security to reflect the current fair value of the security held by the Group by using the back-solve method based on the equity allocation model with adoption of some key parameters such as risk-free rate and equity volatility or market approach by using the selection of comparable companies operating in similar businesses and etc. For the years ended December 31, 2024 and 2025, no gain or loss on fair value changes of investment were recognized due to the observable price change of the investments without readily determinable fair value.\n\nCertain privately held investments accounted for using the measurement alternative election were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to fair values, considering factors including, but not limited to, (i) adverse performance and cash flow forecasts of investees; (ii) adverse industry developments affecting investees; and (iii) adverse regulatory, social, economic or other developments affecting investees. For the years ended December 31, 2023, 2024 and 2025, an impairment charge of RMB210,813, RMB166,127 and RMB43,698 was recognized as an impairment loss for these equity investments without readily determinable fair values. As of December 31, 2024 and 2025, the fair value of these impaired investments measured at Level 3 inputs were RMB15,438 and RMB33,541 respectively. The fair value of the privately held investments was measured based on significant inputs as detailed in Note 9.\n\nApart from the short-term investments, equity investments measured at fair value through earnings and available-for-sale debt investments, the Group’s other financial instruments principally consist of cash and cash equivalents, short-term deposits, long-term deposits, accounts receivable, net, other receivables, prepaid assets and amounts due from related parties, net, accounts payable, certain accrued expenses. These financial instruments are recorded at cost which approximates fair value.\n\n​\n\n**24.**Leases\n\nThe Company entered into operating lease agreements primarily for offices and land.\n\nThe following table summarizes the lease expense for the years ended December 31, 2023, 2024 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years ended December 31, **\n\n \n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n** **\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\n \n\nOperating lease expense\n\n \n\n41,126\n\n \n\n40,670\n\n \n\n34,376\n\n​\n\nShort-term lease expense\n\n \n\n12,730\n\n \n\n13,884\n\n \n\n12,815\n\n​\n\n**Total lease expense**\n\n \n\n53,856\n\n \n\n54,554\n\n \n\n47,191\n\n​\n\nWeighted-average remaining lease term (in years) – operating leases\n\n \n\n​\n\n \n\n​\n\n \n\n1.1\n\n​\n\nWeighted-average discount rate – operating leases\n\n \n\n​\n\n​\n\n​\n\n​\n\n4.0\n\n%  \n\n​\n\n​\n\nF - 59\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**24.**Leases (continued)\n\nAs of December 31, 2025, future minimum lease payments under non-cancellable operating lease agreements for which the Group has recognized operating lease right-of-use assets and liabilities were as follows:\n\n​\n\n​\n\n​\n\n**For the years ending December 31, **\n\n**  ​ ​ ​**\n\n**Future minimum payments**\n\n​\n\n \n\nRMB\n\n2026\n\n \n\n19,327\n\n2027\n\n \n\n1,779\n\nTotal undiscounted cash flows\n\n \n\n21,106\n\nLess: imputed interest\n\n \n\n(358)\n\nTotal\n\n \n\n20,748\n\n​\n\nSupplemental cash flow information related to leases for the years ended December 31, 2023, 2024 and 2025 are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**For the years end December 31, **\n\n​\n\n**  ​ ​ ​**\n\n**2023**\n\n**  ​ ​ ​**\n\n**2024**\n\n**  ​ ​ ​**\n\n**2025**\n\n​\n\n​\n\nRMB\n\n​\n\nRMB\n\n​\n\nRMB\n\nCash paid for operating leases\n\n \n\n34,090\n\n \n\n32,429\n\n \n\n26,001\n\nLease liabilities arising from obtaining right-of-use assets\n\n \n\n74,876\n\n \n\n2,120\n\n \n\n9,305\n\n​\n\n​\n\n**25.**Commitments and contingencies\n\n**(a)**Operating commitments\n\nAs of December 31, 2025, future minimum payments under non-cancelable agreements consist of the following,\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Operating commitments**\n\n​\n\n​\n\nRMB\n\n2026\n\n \n\n7,808\n\n2027\n\n \n\n4,649\n\n2028\n\n​\n\n4,457\n\n2029\n\n \n\n8,415\n\n​\n\n \n\n25,329\n\n​\n\nThe commitments presented above mainly consist of property management fees, short-term lease commitments and leases that have not yet commenced but that create significant rights and obligations for the Company, which are not included in operating lease right-of-use assets and lease liabilities.\n\n**(b)**Capital and other commitments\n\n​\n\nAs of December 31, 2025, the Group had outstanding capital expenditures contracted for construction in progress and investment totaling RMB223,134 are analyzed as follows.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**Capital commitments**\n\n​\n\n \n\nRMB\n\nConstruction in progress\n\n \n\n208,134\n\nInvestment\n\n \n\n15,000\n\n​\n\n \n\n223,134\n\n​\n\n​\n\nF - 60\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**25.**Commitments and contingencies (continued)\n\n**(c)**Legal proceedings\n\nThe Group records a liability when the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. The Group evaluates, on a regular basis, developments in litigation matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate.\n\nAs of December 31, 2025, there were a few significant pending claims related to live streaming broadcasters recruitment and alleged copyright infringement with an aggregate amount of RMB226 million. Given that potential claims amounts were related to cases which are in the early stage or where there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions, the Group is unable to estimate the reasonably possible loss as the proceedings timing and outcome of pending litigation is inherently uncertain.\n\n​\n\n**26.**Subsequent events\n\nOn March 13, 2026, to implement its cash dividend plan for the years 2025, 2026, and 2027 (the “2025-2027 Dividend Plan”) declared on March 18, 2025, the board of directors of the Company have approved a special cash dividend for the year 2026 (the “2026 Cash Dividend”). The 2026 Cash Dividend, declared on March 17, 2026, will be paid to holders of ordinary shares and holders of ADSs of record as of the close of business on June 17, 2026, in U.S. dollars, in an amount of US$0.135 per ordinary share or US$0.135 per ADS. The total amount of cash to be distributed for the 2026 Cash Dividend is expected to be approximately US$31 million, which will be funded by surplus cash on the Company’s balance sheet. The payment date for holders of ordinary shares and holders of ADSs is expected to be on or around June 30, 2026.\n\nOn March 18, 2026, the Company’s board of directors authorized and declared a new share repurchase program (the “2026 Share Repurchase Program”) under which the Company may repurchase up to US$50 million of its ADSs and/or ordinary shares over a 24 -month period ending on March 18, 2028. The Company’s previous share repurchase program, which was originally adopted on August 15, 2023 (the “2023 Share Repurchase Program”), was scheduled to expire on March 31, 2026. Upon the effectiveness of the 2026 Share Repurchase Program on March 18, 2026, the 2023 Share Repurchase Program was terminated, and any of the unutilized quota of US$24.5 million under the 2023 Share Repurchase Program was cancelled.\n\nRepurchases under the 2026 Share Repurchase Program may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company’s board of directors will review the 2026 Share Repurchase Program periodically and may authorize adjustments to its terms and size. The Company expects to fund repurchases made under the 2026 Share Repurchase Program from its existing funds.\n\n​\n\nF - 61\n\n[Table of Contents](#TOC)\n\n**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**\n\n**(All amounts in thousands, except share, ADS, per share and per ADS data, unless otherwise stated)**\n\n​\n\n**27.**Restricted net assets\n\nRelevant PRC laws and regulations permit payments of dividends by the entities incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s entities in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s entities incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion as calculated under U.S. GAAP amounted to RMB1,160,828 and RMB1,019,480 as of December 31, 2024 and 2025. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiaries and VIE to satisfy any obligations of the Company.\n\nFurthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting such conversion may temporarily delay the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations.\n\nFor the year ended December 31, 2025, the Company performed a test on the restricted net assets of subsidiaries and VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets do not exceed 25% of the consolidated net assets of the Company as of December 31, 2025 and the condensed financial information of the Company are not required to be presented.\n\n​\n\nF - 62"}