Track market-moving stories before they get noisy

Hormel Foods Corporation reported positive Q2 results. Input cost inflation has weighed on HRL's margins, but retail segment earnings are finally stabilized in the report. A stabilizing earnings outlook makes HRL's dividend yield safer and more attractive.

AUSTIN, Minn., June 2, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, announced today that John Ghingo, president, and Paul Kuehneman, interim chief financial officer and controller, will participate in a fireside chat at the virtual Oppenheimer 26th Annual Consumer Growth & E-Commerce Conference on Monday, June 8, 2026.

Five Dividend Aristocrats with streaks ranging from 54 to 70 consecutive years of payout hikes are currently trading below Wall Street's consensus price targets, and four of the five just beat their most recent EPS estimates.

Hormel Foods Corporation (HRL) Presents at Oppenheimer 26th Annual Consumer Growth and E-Commerce Conference Transcript

Baidu, Inc. is at an AI inflection point, with surging AI Cloud and GPU Cloud growth now eclipsing legacy online marketing revenues. BIDU's AI-powered business grew 49% YoY, while legacy marketing revenues fell 22%, masking AI topline momentum. Kunlunxin, Baidu's AI chip unit, targets a $15 billion IPO, potentially matching BIDU's entire enterprise value and underscoring deep undervaluation.

Baidu Inc.'s (NASDAQ:BIDU) (9888.HK) revenue from its general business grew 2% year-on-year to 26 billion yuan ($3.82 billion) in the first quarter, as its core AI-driven business accounted for more than half of the total for the first time, according to  its results  released on May 18. AI-related revenue rose 49% during the quarter to 13.6 billion yuan, making up 52% of total general business revenue.

On June 02, 2026, Baidu Inc (BIDU) shares rose 3.3% to a current price of $136.72. Over the past year, the stock has shown impressive growth, appreciating by 64

Baidu Inc. (BIDU) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

The Pentagon added a slew of Chinese tech firms, including Alibaba and Baidu, to a list of entities it believes to have aided Chinese military. The Defense Department will be prohibited from contracting directly with listed companies starting later this month.

Baidu stock price has slumped hard in the past few months as its advertising business has come under intense pressure. It retreated to H$112.3 in Hong Kong, reaching its lowest point since April 14.

A logo of Baidu at an exhibition center during organized media tour in Hohhot, Inner Mongolia Autonomous Region, China, June 11, 2026. REUTERS/Maxim Shemetov Purchase Licensing Rights, opens new tab

CompaniesJune 12 (Reuters) - Baidu (9888.HK), opens new tab said on Friday its autonomous vehicle service AmiGo, developed in partnership with Switzerland's ​public bus operator PostBus, received a ‌regulatory approval for operations in the eastern region of the European country.

Here are the details:

The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.

Baidu aims to launch regular fully ​driverless operations of the joint service ​by early 2027, provided all safety and regulatory ⁠requirements are met.

The company said the service ​is set to be Europe's largest automated public ​transport operation of its kind.

The service will use Apollo Go's fully electric RT6 vehicles, each capable of carrying three ​passengers and equipped with over 30 sensors, ​the company said.

Baidu said AmiGo's services will be bookable ‌through ⁠a dedicated app.

Level 4 autonomous driving is a level of automation where the vehicle can operate without a human driver under ​specific conditions.

Baidu ​had announced a partnership ⁠with PostBus last year, as the Chinese tech firm accelerates a ​global push of its self-driving business.

China's ​leading ⁠search engine operator, Baidu, has been increasing its focus on technologies including AI and ⁠self-driving ​as its advertising-driven search engine business ​has slowed due to a weakening Chinese economy.

Reporting by ​Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed

Our Standards: The Thomson Reuters Trust Principles., opens new tab

ILPT, WLY and ZTO made it to the Zacks Rank #1 (Strong Buy) value stocks list on April 23rd, 2026.

ZTO Express Cayman (ZTO) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Here is how EuroDry (EDRY) and ZTO Express (Cayman) Inc. (ZTO) have performed compared to their sector so far this year.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

9.7 Billion Parcel Volume Grew 7.4 Points Faster than Industry Average
Adjusted Net Income Increased 5.2% to RMB2.4 Billion

, /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the first quarter ended March 31, 2026[1]. The Company grew parcel volume by 13.2% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income increased 5.2%[2] to RMB2.4 billion. Net cash generated from operating activities was RMB2.8 billion.

First Quarter 2026 Financial Highlights

Revenues were RMB13,282.4 million (US$1,925.5 million), an increase of 22.0% from RMB10,891.5 million in the same period of 2025. Gross profit was RMB3,235.2 million (US$469.0 million), an increase of 20.3% from RMB2,689.2 million in the same period of 2025. Net income was RMB2,156.4 million (US$312.6 million), an increase of 5.7% from RMB2,039.2 million in the same period of 2025. Adjusted EBITDA[3] was RMB3,941.3 million (US$571.4 million), an increase of 6.9% from RMB3,686.7 million in the same period of 2025. Adjusted net income was RMB2,377.1 million (US$344.6 million), an increase of 5.2% from RMB2,259.3 million in the same period of 2025. Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB2.73 (US$0.40) and RMB2.68 (US$0.39), an increase of 9.2% and 9.8% from RMB2.50 and RMB2.44 in the same period of 2025, respectively. Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were RMB3.01 (US$0.44) and RMB2.95 (US$0.43), an increase of 8.7% and 8.9% from RMB2.77 and RMB2.71 in the same period of 2025 respectively. Net cash provided by operating activities was RMB2,789.0 million (US$404.3 million), compared with RMB2,363.0 million in the same period of 2025. Operational Highlights for First Quarter 2026

Parcel volume was 9,668 million, increased 13.2% from 8,539 million in the same period of 2025. Number of pickup/delivery outlets was over 31,000 as of March 31, 2026. Number of direct network partners was approximately 6,000 as of March 31, 2026. Number of self-owned line-haul vehicles was over 10,000 as of March 31, 2026. Number of line-haul routes between sorting hubs was approximately 3,800 as of March 31, 2026. Number of sorting hubs was 93 as of March 31, 2026, among which 88 are operated by the Company and 5 by the Company's network partners. [1] An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com.

[2] Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations.

[3] Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude the shared-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations.

[4] One ADS represents one Class A ordinary share.

[5] Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively.

Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented, "During the first quarter of 2026, ZTO maintained focus on quality of services and customer satisfaction, and well executed our key strategies to improve operating cost efficiencies and strengthening network pricing policy fairness and transparency. Our parcel volume reached 9.7 billion, which grew 13.2%, or 7.4 points above industry average, mainly attributable to strong key accounts growth. Our adjusted net income was 2.4 billion, as the daily average retail volume continued to expand at a faster rate than traditional ecommerce volume resulting in improved revenue structure that not only contributed to volume increase as well as positive contribution to overall margin."

Mr. Lai added, "China's express delivery industry is benefiting from the lasting effect of the anti-involution policy. It is well demonstrated by this quarter's industry-wide profit expansion, some faster than its volume growth, that there was an increasing focus on quality growth. ZTO's Quality-First strategy is consistent with regulatory attention as our operating efficiency continues to lead the industry and our effort to drive fairness and transparency across the entire network has generated positive impact on sustainable long-term growth. Shared-Success is never meant to be a corporate slogan, and our work in being fair and supportive of our partners never ends especially given the depth and width of our network footprint. By relying on digitization and diligent follow-through, we are seeing better alignment of strategy consensus and execution cohesiveness from headquarter to the furthest-reached outlets."

Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, "For the first quarter, ZTO's core express ASP increased 8.2%, driven by a favorable mix-shift towards key accounts, which included fast-growing reverse logistics volume, and its positive impact more than offset the per unit increase in volume incentives. Combined unit sorting and transportation costs decreased 6 cents, driven largely by volume-leveraged productivity gain. SG&A excluding SBC as a percentage of revenue improved to approximately 4.5% compared to 4.7% in the same period last year. Cash flow from operating activities was 2.8 billion, and capital spending was 1.8 billion."

Ms. Yan added, "The sustainable growth strategy we focused on throughout the years is equally effective during economic stabilization and recovery. Our unique partner-franchise model requires fine tuning from time to time to maintain equitable sharing of the cost and profit. Our volume growth against industry deceleration came from the consistency of anti-involution policy as well as our initiatives to drive reasonable profit allocation for everyone under the ZTO brand. We aim to strengthen our volume leadership, and we are maintaining our annual parcel growth guidance at 10-13% over last year."

First Quarter 2026 Unaudited Financial Results

Three Months Ended March 31,

2025

2026

RMB

%

RMB

US$

%

(in thousands, except percentages)

Express delivery services

10,122,290

92.9

12,523,779

1,815,567

94.3

Freight forwarding services

179,219

1.7

155,910

22,602

1.2

Sale of accessories

560,297

5.1

577,675

83,745

4.3

Others

29,659

0.3

25,000

3,624

0.2

Total revenues

10,891,465

100.0

13,282,364

1,925,538

100.0

Total Revenues were RMB13,282.4 million (US$1,925.5 million), increased 22.0% from RMB10,891.5 million in the same period of 2025. Revenue from the core express delivery business increased by 22.5% compared to the same period of 2025 as a result of a 13.2% growth in parcel volume and an 8.2% increase in parcel unit price. Key account revenue, generated by direct sales organizations, increased by 92.2% mainly driven by increase in e-commerce return parcels. Revenue from freight forwarding services decreased by 13.0% compared to the same period of 2025. Revenue from sales of accessories, largely consisted of sales of thermal paper for digital waybills, increased by 3.1%. Other revenues were mainly derived from financing services.

Three Months Ended March 31,

2025

2026

RMB

%

RMB

US$

%

(in thousands, except percentages)

Line-haul transportation cost

3,483,065

32.0

3,530,168

511,767

26.6

Sorting hub operating cost

2,314,595

21.3

2,454,271

355,795

18.5

Freight forwarding cost

172,792

1.6

154,265

22,364

1.2

Cost of accessories sold

133,259

1.2

127,589

18,497

1.0

Other costs

2,098,534

19.2

3,780,850

548,107

28.3

Total cost of revenues

8,202,245

75.3

10,047,143

1,456,530

75.6

Total cost of revenues was RMB10,047.1 million (US$1,456.5 million), an increase of 22.5% from RMB8,202.2 million in the same period last year.

Line-haul transportation cost was RMB3,530.2 million (US$511.8 million), increased 1.4% from RMB3,483.1 million in the same period last year. The unit transportation cost decreased 9.8% or 4 cents mainly attributable to better economies of scale and improved load rate through more effective route planning.

Sorting hub operating cost was RMB2,454.3 million (US$355.8 million), increased 6.0% from RMB2,314.6 million in the same period last year. The increase primarily consisted of (i) RMB74.3 million (US$10.8 million) increase in labor-associated costs partially offset by automation-driven efficiency improvements, and (ii) RMB43.1 million (US$6.3 million) increase in depreciation and amortization costs associated with automation facilities and equipment upgrades. As of March 31, 2026, there were 780 sets of automated sorting equipment in service, compared to 631 sets as of March 31, 2025.

Cost of accessories sold was RMB127.6 million (US$18.5 million), decreased by 4.3% compared with RMB133.3 million in the same period last year.

Other costs were RMB3,780.9 million (US$548.1 million), increased 80.2% from RMB2,098.5 million in the same period last year, which was mainly attributable to an increase of RMB1,711.3 million (US$248.1 million) for pickup and dispatching costs paid to network partners associated with serving key account customers.

Gross Profit was RMB3,235.2 million (US$469.0 million), increased by 20.3% from RMB2,689.2 million in the same period last year. Gross margin rate was 24.4% compared to 24.7% in the same period last year.

Total Operating Expenses were RMB690.0 million (US$100.0 million), compared to RMB283.8 million in the same period last year.

Selling, general and administrative expenses were RMB815.7 million (US$118.2 million), increased by 10.6% from RMB737.5 million in the same period last year, mainly due to (i) RMB64.0 million (US$9.3 million) increase in compensation and benefit expenses, and (ii) RMB11.4 million (US$1.6 million) increase in depreciation and amortization costs associated with administrative facilities and equipment.

Other operating income, net was RMB125.7 million (US$18.2 million), compared to RMB453.7 million in the same period last year. Other operating income mainly consisted of (i) RMB80.9 million (US$11.7 million) of government subsidies and tax rebates, and (ii) RMB51.4 million (US$7.5 million) of rental income.

Income from operations was RMB2,545.3 million (US$369.0 million), increased 5.8% from RMB2,405.4 million for the same period last year. The operating margin rate was 19.2% compared to 22.1% in the same period last year.

Interest income was RMB165.9 million (US$24.1 million), compared with RMB198.4 million in the same period last year.

Interest expenses was RMB50.3 million (US$7.3 million), compared with RMB68.9 million in the same period last year.

Gain from fair value changes of financial instruments was RMB54.9 million (US$8.0 million), compared with a gain of RMB36.6 million in the same period last year. Such gain or loss from fair value changes of the financial instruments is quoted by commercial banks according to market-based estimation of future redemption prices.

Income tax expenses were RMB552.2 million (US$80.0 million) compared to RMB531.6 million in the same period last year. Overall income tax rate was 20.5%, decreased by 0.2 percentage points year over year.

Net income was RMB2,156.4 million (US$312.6 million), which increased by 5.7% increase from RMB2,039.2 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.73 (US$0.40) and RMB2.68 (US$0.39), compared to basic and diluted earnings per ADS of RMB2.50 and RMB2.44 in the same period last year, respectively.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.01 (US$0.44) and RMB2.95 (US$0.43), compared with RMB2.77 and RMB2.71 in the same period last year, respectively.

Adjusted net income was RMB2,377.1 million (US$344.6 million), compared with RMB2,259.3 million during the same period last year.

EBITDA[1] was RMB3,720.7 million (US$539.4 million), compared with RMB3,466.6 million in the same period last year.

Adjusted EBITDA was RMB3,941.3 million (US$571.4 million), compared to RMB3,686.7 million in the same period last year.

Net cash provided by operating activities was RMB2,789.0 million (US$404.3 million), compared with RMB2,363.0 million in the same period last year.

[1] EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations.

Resignation of Non-Executive Director and Termination of Investor Rights Agreement

The Board announces that Ms. Di XU has tendered her resignation as a non-executive director of the Company, with effect from May 20, 2026 given the recent termination of the investor rights agreement entered by and among the Company, the Company's founders and subsidiaries of Alibaba Group Holdings Limited in June 2018. Ms. Xu has confirmed that (i) she has no disagreement with the board of directors of the Company (the "Board") and (ii) there is no matter in respect of her resignation that needs to be brought to the attention of the shareholders of the Company or The Stock Exchange of Hong Kong. The Board would like to take this opportunity to express its gratitude to Ms. Xu for her valuable contribution to the Company during her tenure.

Company Share Repurchase Program

The Board has approved a new share repurchase program in March 2026, authorizing the repurchase of up to US$1.5 billion of its shares over the next 24 months, effective from March 20, 2026, through March 20, 2028. The Company expects to fund these repurchases utilizing its existing cash balance.

Business Outlook

Based on current market and operating conditions, the Company reiterates that its parcel volume for 2026 is expected to increase by 10% to 13% year over year, representing a parcel volume range of 42.37 billion to 43.52 billion. Such estimates represent management's current and preliminary view, which are subject to change.

Exchange Rate

This announcement contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB6.898 to US$1.00, the noon buying rate on March 31, 2026 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve Systems.

Use of Non-GAAP Financial Measures

The Company uses EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders, each a non-GAAP financial measure, in evaluating ZTO's operating results and for financial and operational decision-making purposes.

Reconciliations of the Company's non-GAAP financial measures to its U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.

The Company believes that such non-GAAP measures help identify underlying trends in the Company's business that could otherwise be distorted by the effect of the related expenses and gains that the Company includes in income from operations and net income, and provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders should not be considered in isolation or construed as an alternative to net income or any other measure of performance or as an indicator of the Company's operating performance. Investors are encouraged to compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to ZTO's data. ZTO encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure.

Conference Call Information

ZTO's management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday, May 19, 2026 (8:30 AM Beijing Time on Wednesday, May 20, 2026).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-317-6003

Hong Kong:

800-963-976

Mainland China:

4001-206-115

International:

1-412-317-6061

Passcode:

2836360

Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until May 25, 2026:

United States:

1-855-669-9658

International:

1-412-317-0088

Passcode:

1895291

Additionally, a live and archived webcast of the conference call will be available at http://zto.investorroom.com. 

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:2057) ("ZTO" or the "Company") is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.

ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.

For more information, please visit http://zto.investorroom.com. 

Safe Harbor Statement

This announcement contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. Among other things, the business outlook and quotations from management in this announcement contain forward-looking statements. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"), in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the HKEX, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about ZTO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to  differ  materially  from  those  contained  in  any  forward-looking  statement,  including  but  not  limited  to  the  following:  risks  relating  to  the development of the e-commerce and express delivery industries in China; its significant reliance on certain third-party e-commerce platforms; risks associated with its network partners and their employees and personnel; intense competition which could adversely affect the Company's results of operations and market share; any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system; ZTO's ability to build its brand and withstand negative publicity, or other favorable government policies. Further information regarding these and other risks is included in ZTO's filings with the SEC and the HKEX. All information provided in this announcement is as of the date of this announcement, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

UNAUDITED CONSOLIDATED FINANCIAL DATA

Summary of Unaudited Consolidated Comprehensive Income Data:

Three Months Ended March 31,

2025

2026

RMB

RMB

US$

(in thousands, except for share and per share data)

Revenues

10,891,465

13,282,364

1,925,538

Cost of revenues

(8,202,245)

(10,047,143)

(1,456,530)

Gross profit

2,689,220

3,235,221

469,008

Operating (expenses)/income:

Selling, general and administrative

(737,511)

(815,664)

(118,246)

Other operating income, net

453,669

125,711

18,224

Total operating expenses

(283,842)

(689,953)

(100,022)

Income from operations

2,405,378

2,545,268

368,986

Other income/(expenses):

Interest income

198,392

165,945

24,057

Interest expense

(68,876)

(50,272)

(7,288)

Gain from fair value changes of financial instruments

36,613

54,944

7,965

Gain on disposal of equity investees, subsidiary and others

147

478

69

Foreign currency exchange loss before tax

(4,044)

(28,834)

(4,180)

Income before income tax, and share of income in equity method investments

2,567,610

2,687,529

389,609

Income tax expense

(531,574)

(552,180)

(80,049)

Share of income in equity method investments

3,145

21,007

3,045

Net income

2,039,181

2,156,356

312,605

Net income attributable to non-controlling interests

(45,934)

(38,023)

(5,512)

Net income attributable to ZTO Express (Cayman) Inc.

1,993,247

2,118,333

307,093

Net income attributable to ordinary shareholders

1,993,247

2,118,333

307,093

Net earnings per share attributed to ordinary shareholders

Basic

2.50

2.73

0.40

Diluted

2.44

2.68

0.39

Weighted average shares used in calculating net earnings per ordinary share/ADS

Basic

798,486,427

776,158,342

776,158,342

Diluted

832,052,527

798,341,566

798,341,566

Net income

2,039,181

2,156,356

312,605

Other comprehensive income/(expense) ,net of tax of nil:

Foreign currency translation adjustment

8,701

(9,922)

(1,438)

Comprehensive income

2,047,882

2,146,434

311,167

Comprehensive income attributable to non-controlling interests

(45,934)

(38,023)

(5,512)

Comprehensive income attributable to ZTO Express (Cayman) Inc.

2,001,948

2,108,411

305,655

Unaudited Consolidated Balance Sheets Data:

As of

December 31,

March 31,

2025

2026

RMB

RMB

US$

(in thousands, except for share data)

ASSETS

Current assets:

Cash and cash equivalents

10,011,533

11,406,935

1,653,658

Restricted cash

29,129

29,129

4,223

Accounts receivable, net

1,287,475

1,264,820

183,360

Financing receivables

674,880

532,466

77,191

Short-term investment

15,620,892

19,079,372

2,765,928

Inventories

40,648

39,042

5,660

Advances to suppliers

719,277

743,940

107,849

Prepayments and other current assets

5,102,997

5,250,750

761,199

Amounts due from related parties

477,865

506,822

73,474

Total current assets

33,964,696

38,853,276

5,632,542

Investments in equity investees

1,951,910

2,164,047

313,721

Property and equipment, net

35,433,509

36,233,881

5,252,810

Land use rights, net

6,762,240

6,875,348

996,716

Intangible assets, net

52,758

45,466

6,591

Operating lease right-of-use assets

398,082

331,050

47,992

Goodwill

4,157,111

4,157,111

602,655

Deferred tax assets

1,103,655

1,191,798

172,774

Long-term investment

5,221,110

6,292,110

912,164

Long-term financing receivables

1,039,946

989,488

143,446

Other non-current assets

938,980

645,036

93,511

TOTAL ASSETS

91,023,997

97,778,611

14,174,922

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

10,934,419

11,089,280

1,607,608

Accounts payable

2,577,229

2,420,258

350,864

Advances from customers

1,833,131

1,717,342

248,962

Income tax payable

279,541

287,950

41,744

Amounts due to related parties

796,660

92,221

13,369

Operating lease liabilities

139,787

120,382

17,452

Dividends payable

19,659

2,085,103

302,276

Other current liabilities

6,288,714

5,876,810

851,958

Total current liabilities

22,869,140

23,689,346

3,434,233

Long-term bank borrowing

18,000

17,000

2,464

Non-current operating lease liabilities

261,257

218,721

31,708

Deferred tax liabilities

615,073

628,469

91,109

Convertible senior bond

124,114

10,347,781

1,500,113

TOTAL LIABILITIES

23,887,584

34,901,317

5,059,627

Shareholders' equity

    Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized;
    795,528,169 shares issued and 790,812,316 shares outstanding as of December
    31, 2025; 769,900,693 shares issued and 766,482,022 shares outstanding
    as of March 31, 2026)

513

495

72

Additional paid-in capital

24,000,698

22,795,854

3,304,705

Treasury shares, at cost

(254,480)

(245,970)

(35,658)

Retained earnings

42,918,864

39,859,455

5,778,408

Accumulated other comprehensive loss

(281,266)

(291,188)

(42,213)

ZTO Express (Cayman) Inc. shareholders' equity

66,384,329

62,118,646

9,005,314

Non-controlling interests

752,084

758,648

109,981

Total Equity

67,136,413

62,877,294

9,115,295

TOTAL LIABILITIES AND EQUITY

91,023,997

97,778,611

14,174,922

Summary of Unaudited Consolidated Cash Flow Data:

Three Months Ended March 31,

2025

2026

RMB

RMB

US$

(in thousands)

Net cash provided by operating activities

2,362,976

2,789,045

404,327

Net cash used in investing activities

(3,158,465)

(7,174,549)

(1,040,091)

Net cash (used in)/provided by financing activities

(261,091)

5,831,073

845,328

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(12,560)

(50,167)

(7,273)

Net (decrease)/increase in cash, cash equivalents and restricted cash

(1,069,140)

1,395,402

202,291

Cash, cash equivalents and restricted cash at beginning of period

13,530,947

10,046,717

1,456,468

Cash, cash equivalents and restricted cash at end of period

12,461,807

11,442,119

1,658,759

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:

As of

December 31,

March 31,

2025

2026

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

10,011,533

11,406,935

1,653,658

Restricted cash, current

29,129

29,129

4,223

Restricted cash, non-current

6,055

6,055

878

Total cash, cash equivalents and restricted cash

10,046,717

11,442,119

1,658,759

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended March 31,

2025

2026

RMB

RMB

US$

(in thousands, except for share and per share data)

Net income

2,039,181

2,156,356

312,605

Add:

Share-based compensation expense (1)

220,269

221,119

32,056

Gain on disposal of equity investees and subsidiary, net of income taxes

(121)

(395)

(57)

Adjusted net income

2,259,329

2,377,080

344,604

Net income

2,039,181

2,156,356

312,605

Add:

Depreciation

789,108

912,649

132,306

Amortization

37,819

49,211

7,134

Interest expenses

68,876

50,272

7,288

Income tax expenses

531,574

552,180

80,049

EBITDA

3,466,558

3,720,668

539,382

Add:

Share-based compensation expense

220,269

221,119

32,056

Gain on disposal of equity investees and subsidiary

(147)

(478)

(69)

Adjusted EBITDA

3,686,680

3,941,309

571,369

(1) Net of income taxes of nil

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended  March  31,

2025

2026

RMB

RMB

US$

(in thousands, except for share and per share data)

Net income attributable to ordinary shareholders

1,993,247

2,118,333

307,093

Add:

Share-based compensation expense (1)

220,269

221,119

32,056

Loss/(gain) on disposal of equity investees

and subsidiary, net of income taxes

(121)

(395)

(57)

Adjusted Net income attributable to ordinary shareholders

2,213,395

2,339,057

339,092

Weighted average shares used in calculating net earnings per ordinary share/ADS

Basic

798,486,427

776,158,342

776,158,342

Diluted

832,052,527

798,341,566

798,341,566

Net earnings per share/ADS attributable to

ordinary shareholders

Basic

2.50

2.73

0.40

Diluted

2.44

2.68

0.39

Adjusted net earnings per share/ADS

attributable to ordinary shareholders

Basic

2.77

3.01

0.44

Diluted

2.71

2.95

0.43

(1) Net of income taxes of nil

For investor and media inquiries, please contact:
ZTO Express (Cayman) Inc.
Investor Relations
E-mail: [email protected]
Phone: +86 21 5980 4508

SOURCE ZTO Express (Cayman) Inc.

ZTO's first-quarter 2026 revenues benefit from growth in parcel volume.

ZTO Express: Anticipated Margin Expansion Should Drive Re-Rating

A downtrend has been apparent in ZTO Express (Cayman) Inc. (ZTO - Free Report) lately with too much selling pressure. The stock has declined 11.6% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why a Trend Reversal is Due for ZTOThe RSI reading of 28.7 for ZTO is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ZTO in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 3.7% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, ZTO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

, /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025, and a special cash dividend for the year 2026.

Fourth Quarter 2025 Highlights

Total net revenues increased by 16.2% to RMB1,738.5 million (US$248.6 million) for the fourth quarter of 2025, from RMB1,495.8 million for the same period of 2024. Game-related services, advertising and other revenues increased by 59.4% to RMB592.5 million (US$84.7 million) for the fourth quarter of 2025, from RMB371.6 million for the same period of 2024. Net loss attributable to HUYA Inc. was RMB117.6 million (US$16.8 million) for the fourth quarter of 2025, compared with RMB172.2 million for the same period of 2024. Non-GAAP net loss attributable to HUYA Inc.[1] was RMB8.4 million (US$1.2 million) for the fourth quarter of 2025, compared with a non-GAAP net income attributable to HUYA Inc. of RMB1.2 million for the same period of 2024. Average MAUs[2] for the fourth quarter of 2025 was 160.0 million. Fiscal Year 2025 Highlights

Total net revenues increased by 7.0% to RMB6,502.4 million (US$929.8 million) for fiscal year 2025, from RMB6,079.1 million for 2024. Game-related services, advertising and other revenues increased by 43.1% to RMB1,908.4 million (US$272.9 million) for fiscal year 2025, from RMB1,333.9 million for 2024. Net loss attributable to HUYA Inc. was RMB112.6 million (US$16.1 million) for fiscal year 2025, compared with RMB48.0 million for 2024. Non-GAAP net income attributable to HUYA Inc.[1] was RMB99.5 million (US$14.2 million) for fiscal year 2025, compared with RMB268.8 million for 2024. Mr. Junhong Huang, Acting Co-Chief Executive Officer and Senior Vice President of Huya, commented, "In 2025, we made meaningful progress in our evolution into a comprehensive game-related services provider. Our total net revenues for 2025 rebounded to RMB6.5 billion, up 7.0% year-over-year. Notably, our fourth quarter total net revenues reached RMB1.74 billion, with year-over-year growth accelerating to 16.2%. This performance was primarily driven by our business diversification efforts, as game-related services, advertising, and other revenues surged 59.4% year-over-year and accounted for over 30% of total net revenues, which is now the second quarter since we first hit this milestone."

"Building on this momentum, our expansion into game publishing achieved a key breakthrough with the launch of Goose Goose Duck mobile in the Chinese mainland in January 2026. Since its debut, the title has demonstrated exceptional market appeal, ranking No. 1 on the local Apple App Store free games chart for most of the past two months. More importantly, this success powerfully validates our content-driven publishing strategy and lays the groundwork for us to further deepen our presence across the gaming ecosystem," Mr. Huang concluded.

Mr. Raymond Peng Lei, Acting Co-Chief Executive Officer and Chief Financial Officer of Huya, added, "Our fourth quarter results included a one-off accounting provision, which had a significant impact on our reported operating results and led to an operating loss for the quarter. Excluding the impact of this item, this quarter's results reflected continued improvement in our core operating performance."

Fourth Quarter 2025 Financial Results

Total net revenues increased by 16.2% to RMB1,738.5 million (US$248.6 million) for the fourth quarter of 2025, from RMB1,495.8 million for the same period of 2024.

Live streaming revenues increased by 1.9% to RMB1,146.0 million (US$163.9 million) for the fourth quarter of 2025, from RMB1,124.2 million for the same period of 2024, primarily due to higher average spending per paying user for live streaming services.

Game-related services, advertising and other revenues increased by 59.4% to RMB592.5 million (US$84.7 million) for the fourth quarter of 2025, from RMB371.6 million for the same period of 2024. The increase was primarily driven by higher revenues from game-related services and advertising, which were mainly attributable to the Company's deepened cooperation with game companies.

Cost of revenues increased by 12.7% to RMB1,493.8 million (US$213.6 million) for the fourth quarter of 2025, from RMB1,325.4 million for the same period of 2024, primarily due to increased revenue sharing fees and content costs, as well as increased costs of in-game items, partially offset by decreased bandwidth and server custody fees. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 10.4% year-over-year to RMB1,277.2 million (US$182.6 million) for the fourth quarter of 2025, primarily due to increased revenues.

Gross profit increased by 43.6% to RMB244.7 million (US$35.0 million) for the fourth quarter of 2025, from RMB170.5 million for the same period of 2024. Gross margin was 14.1% for the fourth quarter of 2025, compared with 11.4% for the same period of 2024.

Research and development expenses decreased by 0.2% to RMB123.1 million (US$17.6 million) for the fourth quarter of 2025, from RMB123.3 million for the same period of 2024.

Sales and marketing expenses increased by 24.3% to RMB78.1 million (US$11.2 million) for the fourth quarter of 2025, from RMB62.8 million for the same period of 2024, primarily due to increased marketing and promotional efforts, including pre-launch preparations for Goose Goose Duck mobile, a co-published title that was subsequently launched in January 2026.

General and administrative expenses increased by 55.4% to RMB126.0 million (US$18.0 million) for the fourth quarter of 2025, from RMB81.1 million for the same period of 2024, primarily due to a RMB66.0 million (US$9.4 million) provision related to a receivable arising from a 2021 arrangement with a broadcaster, which was deemed to have a heightened risk of non-recoverability.

Other income was RMB17.5 million (US$2.5 million) for the fourth quarter of 2025, compared with RMB4.0 million for the same period of 2024, primarily due to increased government subsidies.

Operating loss was RMB64.9 million (US$9.3 million) for the fourth quarter of 2025, compared with RMB92.7 million for the same period of 2024.

Non-GAAP operating loss was RMB36.1 million (US$5.2 million) for the fourth quarter of 2025, compared with RMB69.3 million for the same period of 2024.

Interest income was RMB32.1 million (US$4.6 million) for the fourth quarter of 2025, compared with RMB75.2 million for the same period of 2024, primarily due to a lower time deposit balance, which was mainly attributable to the special cash dividends paid.

Impairment loss of investments was RMB81.5 million (US$11.6 million) for the fourth quarter of 2025, compared with RMB151.1 million for the same period of 2024, primarily due to the recognition of impairment charges on the Company's investments, attributable to the weak financial performance of certain investees.

Net loss attributable to HUYA Inc. was RMB117.6 million (US$16.8 million) for the fourth quarter of 2025, compared with RMB172.2 million for the same period of 2024.

Non-GAAP net loss attributable to HUYA Inc. was RMB8.4 million (US$1.2 million) for the fourth quarter of 2025, compared with a non-GAAP net income attributable to HUYA Inc. of RMB1.2 million for the same period of 2024.

Basic and diluted net loss per American depositary share ("ADS") were each RMB0.51 (US$0.07) for the fourth quarter of 2025. Basic and diluted net loss per ADS were each RMB0.75 for the fourth quarter of 2024. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net loss per ADS were each RMB0.04 (US$0.01) for the fourth quarter of 2025. Non-GAAP basic and diluted net income per ADS were each RMB0.01 for the fourth quarter of 2024.

As of December 31, 2025, the Company had cash and cash equivalents, short-term deposits and long-term deposits of RMB3,818.4 million (US$546.0 million), compared with RMB3,828.2 million as of September 30, 2025.

Fiscal Year 2025 Financial Results

Total net revenues increased by 7.0% to RMB6,502.4 million (US$929.8 million) for fiscal year 2025, from RMB6,079.1 million for 2024.

Live streaming revenues decreased by 3.2% to RMB4,594.0 million (US$656.9 million) for fiscal year 2025, from RMB4,745.2 million for 2024, primarily due to the continued impact of the macroeconomic and industry environment, partially offset by improved monetization efficiency, as reflected in higher average spending per paying user for live streaming services in the second half of 2025.

Game-related services, advertising and other revenues increased by 43.1% to RMB1,908.4 million (US$272.9 million) for fiscal year 2025, from RMB1,333.9 million for 2024. The increase was primarily driven by higher revenues from game-related services and advertising, which were mainly attributable to the Company's deepened cooperation with game companies.

Cost of revenues increased by 6.8% to RMB5,630.3 million (US$805.1 million) for fiscal year 2025, from RMB5,269.7 million for 2024, primarily due to increased revenue sharing fees and content costs, as well as increased costs of in-game items, partially offset by decreased bandwidth and server custody fees. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 5.5% year-over-year to RMB4,872.3 million (US$696.7 million) for fiscal year 2025, primarily due to increased revenues.

Gross profit increased by 7.7% to RMB872.1 million (US$124.7 million) for fiscal year 2025, from RMB809.5 million for 2024. Gross margin was 13.4% for fiscal year 2025, compared with 13.3% for 2024.

Research and development expenses decreased by 3.1% to RMB496.7 million (US$71.0 million) for fiscal year 2025, from RMB512.6 million for 2024, primarily due to decreased staff costs as a result of enhanced efficiency.

Sales and marketing expenses decreased by 2.7% to RMB266.6 million (US$38.1 million) for fiscal year 2025, from RMB274.0 million for 2024, primarily due to decreased channel promotion fees.

General and administrative expenses increased by 21.2% to RMB308.9 million (US$44.2 million) for fiscal year 2025, from RMB254.8 million for 2024, primarily due to a RMB66.0 million (US$9.4 million) provision related to a receivable arising from a 2021 arrangement with a broadcaster, which was deemed to have a heightened risk of non-recoverability.

Other income was RMB37.5 million (US$5.4 million) for fiscal year 2025, compared with RMB42.5 million for 2024, primarily due to lower government subsidies.

Operating loss was RMB162.5 million (US$23.2 million) for fiscal year 2025, compared with RMB189.6 million for 2024.

Non-GAAP operating loss was RMB65.0 million (US$9.3 million) for fiscal year 2025, compared with RMB101.3 million for 2024.

Interest income was RMB190.8 million (US$27.3 million) for fiscal year 2025, compared with RMB391.4 million for 2024, primarily due to a lower time deposit balance, which was mainly attributable to the special cash dividends paid.

Impairment loss of investments was RMB120.2 million (US$17.2 million) for fiscal year 2025, compared with RMB232.5 million for 2024, primarily due to the recognition of impairment charges on the Company's investments, attributable to the weak financial performance of certain investees.

Net loss attributable to HUYA Inc. was RMB112.6 million (US$16.1 million) for fiscal year 2025, compared with RMB48.0 million for 2024.

Non-GAAP net income attributable to HUYA Inc. was RMB99.5 million (US$14.2 million) for fiscal year 2025, compared with RMB268.8 million for 2024.

Basic and diluted net loss per ADS were each RMB0.49 (US$0.07) for fiscal year 2025. Basic and diluted net loss per ADS were each RMB0.21 for 2024.

Non-GAAP basic and diluted net income per ADS were each RMB0.43 (US$0.06) for fiscal year 2025. Non-GAAP basic and diluted net income per ADS were RMB1.16 and RMB1.15, respectively, for 2024.

Net cash used in operating activities was RMB176.2 million (US$25.2 million) for fiscal year 2025, compared with net cash provided by operating activities of RMB94.3 million for 2024, primarily due to decreased interest income and increased amounts due from related parties.

Share Repurchase Program

Pursuant to the Company's up-to-US$100 million share repurchase program authorized in August 2023, which has an extended expiration date of March 31, 2026, the Company had repurchased 22.9 million ADSs as of December 31, 2025, with an aggregate consideration of US$75.5 million.

2026 Cash Dividend

To implement its 2025-2027 dividend plan adopted in March 2025, the board of directors of the Company has approved a special cash dividend for the year 2026 (the "2026 Cash Dividend"). The 2026 Cash Dividend 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. The dividend to be paid to the Company's ADS holders through the depositary bank will be subject to the terms of the deposit agreement.

Earnings Webinar

The Company's management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on March 17, 2026 (6:00 p.m. Beijing/Hong Kong time on March 17, 2026), to review and discuss the Company's business and financial performance.

For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar.

Participant Online Registration:

A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session.

[1] "Non-GAAP net (loss) income attributable to HUYA Inc." is defined as net (loss) income attributable to HUYA Inc. excluding share-based compensation expenses, gain arising from disposal of an equity investment, net of income taxes, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. For more information, please refer to the section titled "Use of Non-GAAP Financial Measures" and the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

[2] Refers to the average total monthly active users who accessed the Company's domestic and overseas platforms and services (primarily the domestic Huya Live platform, its global mobile application service platform, its overseas game live streaming platform, and related services), inclusive of users across all devices (mobile, PC and web). Average MAUs for any period is calculated by dividing (i) the sum of total active users for each month during such relevant period, by (ii) the number of months during such relevant period. The Company shifted to total MAU reporting starting from the second quarter of 2025 to provide a more comprehensive view of user activity, in line with its business expansion, cross-platform strategy, and overseas initiatives.

[3] For the purpose of this announcement only, Chinese Mainland excludes the Hong Kong Special Administrative Region, the Macao Special Administrative Region of the People's Republic of China, and Taiwan.

About HUYA Inc.

HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide.

For more information, please visit: https://ir.huya.com.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP gross profit, non-GAAP operating (loss) income, non-GAAP net (loss) income attributable to HUYA Inc., non-GAAP net (loss) income attributable to ordinary shareholders, non-GAAP basic and diluted net (loss) income per ordinary share, and non-GAAP basic and diluted net (loss) income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating (loss) income is operating loss excluding share-based compensation expenses and amortization of intangible assets from business acquisitions. Non-GAAP net (loss) income attributable to HUYA Inc. is net (loss) income attributable to HUYA Inc. excluding share-based compensation expenses, gain arising from disposal of an equity investment, net of income taxes, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP net (loss) income attributable to ordinary shareholders is net (loss) income attributable to ordinary shareholders excluding share-based compensation expenses, gain arising from disposal of an equity investment, net of income taxes, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP basic and diluted net (loss) income per ordinary share and per ADS is non-GAAP net (loss) income attributable to ordinary shareholders divided by the weighted average number of ordinary shares and ADS used in the calculation of non-GAAP basic and diluted net (loss) income per ordinary share and per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, (ii) gain arising from disposal of an equity investment, net of income taxes, (iii) impairment loss of investments, and (iv) amortization of intangible assets from business acquisitions (net of income taxes), add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures represent useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses, and (ii) amortization of intangible assets from business acquisitions (net of income taxes), which have been and will continue to be significant recurring expenses in its business, and (iii) gain arising from disposal of an equity investment, net of income taxes, and (iv) impairment loss of investments. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net (loss) income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider a non-GAAP financial measure in isolation from or as an alternative to the financial measures prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.9931 to US$1.00, the noon buying rate in effect on December 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this announcement, as well as Huya's strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Huya's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huya's goals and strategies; Huya's future business development, results of operations and financial condition; the expected growth of the live streaming market and game market; the expectation regarding the rate at which to gain active users, especially paying users; Huya's ability to monetize the user base; Huya's efforts in complying with applicable data privacy and security regulations; fluctuations in general economic and business conditions in China; the economy in China and elsewhere generally; any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

HUYA Inc.
Investor Relations
Tel: +86-20-2290-7829
E-mail: [email protected]

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]

In the United States:

Piacente Financial Communications 
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

As of December 31,

As of December 31,

2024

2025

2025

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

1,188,911

692,663

99,049

Restricted cash

17,031

12,031

1,720

Short-term deposits

4,075,048

3,125,760

446,978

Accounts receivable, net

76,044

238,569

34,115

Prepaid assets and amounts due from related
     parties, net

207,565

290,747

41,576

Prepayments and other current assets, net

523,674

547,078

78,232

Total current assets

6,088,273

4,906,848

701,670

Non-current assets

Long-term deposits

1,470,000

-

-

Investments

440,790

296,165

42,351

Goodwill

463,796

453,498

64,849

Property and equipment, net

484,008

604,368

86,423

Intangible assets, net

153,190

127,633

18,251

Right-of-use assets, net

339,492

304,017

43,474

Prepayments and other non-current assets

128,262

8,843

1,265

Total non-current assets

3,479,538

1,794,524

256,613

Total assets

9,567,811

6,701,372

958,283

Liabilities and shareholders' equity

Current liabilities

Accounts payable

66,613

237,903

34,020

Advances from customers and deferred revenue

265,628

228,167

32,627

Income taxes payable

54,594

61,479

8,791

Accrued liabilities and other current liabilities

1,360,949

1,032,437

147,637

Amounts due to related parties

161,529

150,166

21,473

Lease liabilities due within one year

28,581

18,982

2,714

Total current liabilities

1,937,894

1,729,134

247,262

Non-current liabilities

Lease liabilities

20,047

1,766

253

Deferred tax liabilities

23,405

18,932

2,707

Deferred revenue

35,786

31,824

4,551

Total non-current liabilities

79,238

52,522

7,511

Total liabilities

2,017,132

1,781,656

254,773

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)

As of December 31,

As of December 31,

2024

2025

2025

RMB

RMB

US$

Shareholders' equity

Class 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)

52

54

8

Class 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)

98

98

14

Treasury shares

(108,101)

(128,056)

(18,312)

Additional paid-in capital

8,866,492

6,466,101

924,640

Statutory reserves

122,429

122,429

17,507

Accumulated deficit

(2,100,291)

(2,219,365)

(317,365)

Accumulated other comprehensive income

770,000

678,455

97,018

Total shareholders' equity

7,550,679

4,919,716

703,510

Total liabilities and shareholders' equity

9,567,811

6,701,372

958,283

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Net revenues

Live streaming

1,124,188

1,156,681

1,145,950

163,869

4,745,195

4,594,014

656,935

Game-related services, advertising and others

371,639

531,570

592,525

84,730

1,333,920

1,908,386

272,896

Total net revenues

1,495,827

1,688,251

1,738,475

248,599

6,079,115

6,502,400

929,831

Cost of revenues(1)

(1,325,364)

(1,461,627)

(1,493,767)

(213,606)

(5,269,661)

(5,630,267)

(805,117)

Gross profit

170,463

226,624

244,708

34,993

809,454

872,133

124,714

Operating expenses(1)

Research and development expenses

(123,313)

(121,942)

(123,054)

(17,596)

(512,637)

(496,677)

(71,024)

Sales and marketing expenses

(62,798)

(70,107)

(78,066)

(11,163)

(274,049)

(266,567)

(38,119)

General and administrative expenses

(81,054)

(57,729)

(125,958)

(18,012)

(254,840)

(308,875)

(44,169)

Total operating expenses

(267,165)

(249,778)

(327,078)

(46,771)

(1,041,526)

(1,072,119)

(153,312)

Other income, net

4,010

8,854

17,516

2,505

42,496

37,481

5,360

Operating loss

(92,692)

(14,300)

(64,854)

(9,273)

(189,576)

(162,505)

(23,238)

Interest income

75,234

34,655

32,144

4,597

391,389

190,789

27,282

Impairment loss of investments

(151,089)

(8,698)

(81,458)

(11,648)

(232,466)

(120,156)

(17,182)

Disposal gain of investments

-

1,500

-

-

-

1,500

214

Foreign currency exchange losses, net

(522)

(2,008)

(2,182)

(312)

(3,802)

(6,718)

(961)

(Loss) income before income tax expenses

(169,069)

11,149

(116,350)

(16,636)

(34,455)

(97,090)

(13,885)

Income tax expenses

(3,134)

(508)

(1,662)

(238)

(13,500)

(12,806)

(1,831)

(Loss) income before (loss) income in equity 
     method investments, net of income taxes

(172,203)

10,641

(118,012)

(16,874)

(47,955)

(109,896)

(15,716)

(Loss) income in equity method investments,
     net of income taxes

-

(1,085)

429

61

-

(2,695)

(385)

Net (loss) income attributable to HUYA Inc.

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

Net (loss) income attributable to ordinary
     shareholders

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Net (loss) income per ordinary share

  —Basic

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

  —Diluted

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

Net (loss) income per ADS*

  —Basic

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

  —Diluted

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

Weighted average number of ADS used in
     calculating net (loss) income per ADS

  —Basic

230,581,559

229,032,506

229,212,223

229,212,223

231,533,388

228,840,636

228,840,636

  —Diluted

230,581,559

231,210,726

229,212,223

229,212,223

231,533,388

228,840,636

228,840,636

*

Each ADS represents one Class A ordinary share.

(1)

Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Cost of revenues

3,268

1,666

3,335

477

15,566

12,091

1,729

Research and development expenses

6,283

4,335

5,561

795

27,269

22,772

3,256

Sales and marketing expenses

164

213

214

31

1,147

1,141

163

General and administrative expenses

7,683

8,435

13,720

1,962

20,538

37,588

5,375

HUYA INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Gross profit

170,463

226,624

244,708

34,993

809,454

872,133

124,714

Share-based compensation expenses allocated
     in cost of revenues

3,268

1,666

3,335

477

15,566

12,091

1,729

Non-GAAP gross profit

173,731

228,290

248,043

35,470

825,020

884,224

126,443

Operating loss

(92,692)

(14,300)

(64,854)

(9,273)

(189,576)

(162,505)

(23,238)

Share-based compensation expenses

17,398

14,649

22,830

3,265

64,520

73,592

10,523

Amortization of intangible assets from
     business acquisitions

5,964

5,958

5,915

846

23,772

23,874

3,414

Non-GAAP operating (loss) income

(69,330)

6,307

(36,109)

(5,162)

(101,284)

(65,039)

(9,301)

Net (loss) income attributable to HUYA Inc.

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

Gain arising from disposal of an equity
     investment, net of income taxes

-

(1,500)

-

-

-

(1,500)

(214)

Impairment loss of investments

151,089

8,698

81,458

11,648

232,466

120,156

17,182

Share-based compensation expenses

17,398

14,649

22,830

3,265

64,520

73,592

10,523

Amortization of intangible assets from
     business acquisitions, net of income taxes

4,950

4,945

4,910

702

19,731

19,816

2,834

Non-GAAP net income (loss) attributable to
     HUYA Inc.

1,234

36,348

(8,385)

(1,198)

268,762

99,473

14,224

Net (loss) income attributable to ordinary
     shareholders

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

Gain arising from disposal of an equity
     investment, net of income taxes

-

(1,500)

-

-

-

(1,500)

(214)

Impairment loss of investments

151,089

8,698

81,458

11,648

232,466

120,156

17,182

Share-based compensation expenses

17,398

14,649

22,830

3,265

64,520

73,592

10,523

Amortization of intangible assets from
      business acquisitions, net of income taxes

4,950

4,945

4,910

702

19,731

19,816

2,834

Non-GAAP net income (loss) attributable to
     ordinary shareholders

1,234

36,348

(8,385)

(1,198)

268,762

99,473

14,224

Non-GAAP net income (loss) per ordinary
     share

  —Basic

0.01

0.16

(0.04)

(0.01)

1.16

0.43

0.06

  —Diluted

0.01

0.16

(0.04)

(0.01)

1.15

0.43

0.06

Non-GAAP net income (loss) per ADS

  —Basic

0.01

0.16

(0.04)

(0.01)

1.16

0.43

0.06

  —Diluted

0.01

0.16

(0.04)

(0.01)

1.15

0.43

0.06

Weighted average number of ADS used in
     calculating Non-GAAP net income
      (loss) per ADS

  —Basic

230,581,559

229,032,506

229,212,223

229,212,223

231,533,388

228,840,636

228,840,636

  —Diluted

232,217,347

231,210,726

229,212,223

229,212,223

233,875,454

231,442,937

231,442,937

SOURCE HUYA Inc.

GUANGZHOU, China, March 18, 2026 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced that its board of directors has authorized a new share repurchase program (the "2026 Share Repurchase Program"), effective immediately on March 18, 2026. Under the 2026 Share Repurchase Program, the Company may repurchase up to US$50 million of its American depositary shares ("ADSs") and/or ordinary shares over a 24-month period ending on March 18, 2028.

-Earnings Webinar Scheduled for 6:00 a.m. ET on May 12, 2026- GUANGZHOU, China, April 21, 2026 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced that it will report its first quarter 2026 unaudited financial results on Tuesday, May 12, 2026, before the open of U.S. markets.

, /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced its unaudited financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Highlights

Total net revenues increased by 14.6% to RMB1,728.4 million (US$250.6 million) for the first quarter of 2026, from RMB1,508.6 million for the same period of 2025. Game-related services, advertising and other revenues increased by 69.4% to RMB627.4 million (US$91.0 million) for the first quarter of 2026, from RMB370.4 million for the same period of 2025. Operating loss narrowed to RMB28.8 million (US$4.2 million) for the first quarter of 2026, compared with RMB59.6 million for the same period of 2025. Non-GAAP[1] operating loss narrowed to RMB2.7 million (US$0.4 million) for the first quarter of 2026, compared with RMB35.6 million for the same period of 2025. Net loss attributable to HUYA Inc. was RMB4.1 million (US$0.6 million) for the first quarter of 2026, compared with a net income attributable to HUYA Inc. of RMB0.9 million for the same period of 2025. Non-GAAP net income attributable to HUYA Inc. was RMB21.1 million (US$3.1 million) for the first quarter of 2026, compared with RMB24.0 million for the same period of 2025. Mr. Junhong Huang, Acting Chief Executive Officer of Huya, commented, "Huya continued to deliver solid results in the first quarter of 2026, underpinned by our ongoing transformation into a comprehensive game-related services provider. Total net revenues reached RMB1.73 billion, up 14.6% year-over-year, while game-related services, advertising, and other revenues grew 69.4% year-over-year to RMB627.4 million, representing a record 36.3% of total net revenues."

"Goose Goose Duck mobile continued to gain traction in the Chinese mainland, reaching as high as Top 5 on the local Apple App Store top-grossing games chart in April, demonstrating the game's promising monetization potential. Beyond game publishing, our broader game-related services also made meaningful progress. In-game item sales maintained rapid year-over-year growth, fueled by deeper collaborations with top-tier game titles, while our content-driven advertising services continued to attract leading game companies seeking integrated marketing solutions. With multiple new publishing titles in our pipeline, we are well-positioned to build on this momentum through disciplined execution," Mr. Huang concluded.

Mr. Raymond Peng Lei, Chief Financial Officer of Huya, added, "This quarter's steady top line growth and the continued improvement in both our revenue mix and operating performance underscore the earnings potential of our diversification efforts. The increased revenue contribution from businesses with higher gross margins led to a year-over-year and sequential gross margin expansion to 14.6% this quarter. Looking ahead, we remain focused on prudently pursuing growth opportunities while preserving earnings quality and delivering long-term value to our shareholders."

First Quarter 2026 Financial Results

Total net revenues increased by 14.6% to RMB1,728.4 million (US$250.6 million) for the first quarter of 2026, from RMB1,508.6 million for the same period of 2025.

Live streaming revenues were RMB1,101.0 million (US$159.6 million) for the first quarter of 2026, compared with RMB1,138.2 million for the same period of 2025, primarily reflecting the live streaming industry's current environment.

Game-related services, advertising and other revenues increased by 69.4% to RMB627.4 million (US$91.0 million) for the first quarter of 2026, from RMB370.4 million for the same period of 2025. The increase was primarily driven by higher revenues from in-game item sales and advertising, mainly attributable to the Company's deepened and broadened collaboration with game companies.

Cost of revenues increased by 11.8% to RMB1,475.2 million (US$213.9 million) for the first quarter of 2026, from RMB1,320.1 million for the same period of 2025, primarily due to increased costs of in-game virtual items, as well as increased revenue sharing fees and content costs. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 6.9% year-over-year to RMB1,234.7 million (US$179.0 million) for the first quarter of 2026, mainly reflecting higher revenues.

Gross profit increased by 34.3% to RMB253.2 million (US$36.7 million) for the first quarter of 2026, from RMB188.5 million for the same period of 2025. Gross margin was 14.6% for the first quarter of 2026, compared with 12.5% for the same period of 2025.

Research and development expenses increased by 1.7% to RMB131.7 million (US$19.1 million) for the first quarter of 2026, from RMB129.5 million for the same period of 2025.

Sales and marketing expenses increased by 45.1% to RMB88.1 million (US$12.8 million) for the first quarter of 2026, from RMB60.7 million for the same period of 2025, primarily due to marketing and promotional efforts related to the launch of Goose Goose Duck mobile.

General and administrative expenses increased by 5.9% to RMB65.1 million (US$9.4 million) for the first quarter of 2026, from RMB61.4 million for the same period of 2025, primarily due to increased share-based compensation expenses.

Other income was RMB2.9 million (US$0.4 million) for the first quarter of 2026, compared with RMB3.5 million for the same period of 2025, primarily due to lower government subsidies.

Operating loss narrowed to RMB28.8 million (US$4.2 million) for the first quarter of 2026, compared with RMB59.6 million for the same period of 2025.

Non-GAAP operating loss narrowed to RMB2.7 million (US$0.4 million) for the first quarter of 2026, compared with RMB35.6 million for the same period of 2025.

Interest income was RMB30.3 million (US$4.4 million) for the first quarter of 2026, compared with RMB64.9 million for the same period of 2025, primarily due to a lower time deposit balance, mainly reflecting the payment of special cash dividends.

Net loss attributable to HUYA Inc. was RMB4.1 million (US$0.6 million) for the first quarter of 2026, compared with a net income attributable to HUYA Inc. of RMB0.9 million for the same period of 2025.

Non-GAAP net income attributable to HUYA Inc. was RMB21.1 million (US$3.1 million) for the first quarter of 2026, compared with RMB24.0 million for the same period of 2025.

Basic and diluted net loss per American depositary share ("ADS") were each RMB0.02 (US$0.00) for the first quarter of 2026. Basic and diluted net income per ADS were each RMB0.00 for the first quarter of 2025. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net income per ADS were each RMB0.09 (US$0.01) for the first quarter of 2026. Non-GAAP basic and diluted net income per ADS were each RMB0.10 for the first quarter of 2025.

As of March 31, 2026, the Company had cash and cash equivalents, short-term deposits and long-term deposits of RMB3,455.1 million (US$500.9 million), compared with RMB3,818.4 million as of December 31, 2025.

Earnings Webinar

The Company's management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on May 12, 2026 (6:00 p.m. Beijing/Hong Kong time on May 12, 2026), to review and discuss the Company's business and financial performance.

For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar.

Participant Online Registration:

A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session.

[1] The Company's non-GAAP financial measures exclude share-based compensation expenses, amortization of intangible assets from business acquisitions, and impairment loss of investments, to the extent applicable. For more information, please refer to the section titled "Use of Non-GAAP Financial Measures" and the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

[2] For the purpose of this announcement only, Chinese Mainland excludes the Hong Kong Special Administrative Region, the Macao Special Administrative Region of the People's Republic of China, and Taiwan.

About HUYA Inc.

HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide.

For more information, please visit: https://ir.huya.com.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP gross profit, non-GAAP operating loss, non-GAAP net income (loss) attributable to HUYA Inc., non-GAAP net income (loss) attributable to ordinary shareholders, non-GAAP basic and diluted net income (loss) per ordinary share, and non-GAAP basic and diluted net income (loss) per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating loss is operating loss excluding share-based compensation expenses and amortization of intangible assets from business acquisitions. Non-GAAP net income (loss) attributable to HUYA Inc. is net income (loss) attributable to HUYA Inc. excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP net income (loss) attributable to ordinary shareholders is net income (loss) attributable to ordinary shareholders excluding share-based compensation expenses, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP basic and diluted net income (loss) per ordinary share and per ADS is non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of ordinary shares and ADS used in the calculation of non-GAAP basic and diluted net income (loss) per ordinary share and per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, (ii) impairment loss of investments, and (iii) amortization of intangible assets from business acquisitions (net of income taxes), add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures represent useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses, and (ii) amortization of intangible assets from business acquisitions, which have been and will continue to be significant recurring expenses in its business, and (iii) impairment loss of investments. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider a non-GAAP financial measure in isolation from or as an alternative to the financial measures prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.8980 to US$1.00, the noon buying rate in effect on March 31, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this announcement, as well as Huya's strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Huya's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huya's goals and strategies; Huya's future business development, results of operations and financial condition; the expected growth of the live streaming industry and the game industry in mainland China and internationally; Huya's expectation regarding demand for and market acceptance of its products and services; Huya's ability retain and grow its user reach, broadcasters, talent agencies, business partners for game-related services and advertisers; Huya's ability to expand its product and service offerings; competition in the live streaming industry and game industry; Huya's efforts in complying with applicable data privacy and security regulations; fluctuations in general economic and business conditions in China; the economy in China and elsewhere generally; any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

HUYA Inc.
Investor Relations
Tel: +86-20-2290-7829
E-mail: [email protected]

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

As of December 31,

As of March 31,

2025

2026

2026

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

692,663

360,398

52,247

Restricted cash and short-term deposits

12,031

31,537

4,572

Short-term deposits

3,125,760

2,874,686

416,742

Accounts receivable, net

238,569

339,951

49,283

Prepaid assets and amounts due from related
   parties, net

290,747

371,368

53,837

Prepayments and other current assets, net

547,078

524,849

76,086

Total current assets

4,906,848

4,502,789

652,767

Non-current assets

Long-term deposits

-

220,000

31,893

Investments

296,165

329,409

47,754

Goodwill

453,498

446,440

64,720

Property and equipment, net

604,368

653,732

94,771

Intangible assets, net

127,633

116,683

16,915

Right-of-use assets, net

304,017

310,640

45,033

Prepayments and other non-current assets

8,843

9,503

1,378

Total non-current assets

1,794,524

2,086,407

302,464

Total assets

6,701,372

6,589,196

955,231

Liabilities and shareholders' equity

Current liabilities

Accounts payable

237,903

384,594

55,754

Advances from customers and deferred revenue

228,167

208,398

30,211

Income taxes payable

61,479

55,101

7,988

Accrued liabilities and other current liabilities

1,032,437

852,899

123,644

Amounts due to related parties

150,166

104,470

15,145

Lease liabilities due within one year

18,982

16,470

2,388

Dividends payable

-

214,655

31,118

Total current liabilities

1,729,134

1,836,587

266,248

Non-current liabilities

Lease liabilities

1,766

12,808

1,857

Deferred tax liabilities

18,932

18,059

2,618

Deferred revenue

31,824

32,780

4,752

Total non-current liabilities

52,522

63,647

9,227

Total liabilities

1,781,656

1,900,234

275,475

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)

As of December 31,

As of March 31,

2025

2026

2026

RMB

RMB

US$

Shareholders' equity

Class A ordinary shares (US$0.0001 par value;
   750,000,000 shares authorized as of December
   31, 2025 and March 31, 2026, respectively;
   73,146,779 and 79,404,675* shares issued and
   outstanding as of December 31, 2025 and March
   31, 2026, respectively)

54

58

8

Class B ordinary shares (US$0.0001 par value;
   200,000,000 shares authorized as of December
   31, 2025 and March 31, 2026, respectively;
   150,386,517 and 150,386,517 shares issued and
   outstanding as of December 31, 2025 and
   March 31, 2026, respectively)

98

98

14

Treasury shares

(128,056)

(125,183)

(18,148)

Additional paid-in capital

6,466,101

6,270,666

909,056

Statutory reserves

122,429

122,429

17,748

Accumulated deficit

(2,219,365)

(2,224,839)

(322,534)

Accumulated other comprehensive income

678,455

645,733

93,612

Total shareholders' equity

4,919,716

4,688,962

679,756

Total liabilities and shareholders' equity

6,701,372

6,589,196

955,231

* For the avoidance of doubt, the total outstanding ordinary shares include 5,655,480 Class A ordinary shares beneficially owned by participants
  of HUYA Inc.'s share incentive plans.

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

March 31,

2025

December 31,

2025

March 31,

2026

March 31,

2026

RMB

RMB

RMB

US$

Net revenues

Live streaming

1,138,151

1,145,950

1,100,993

159,610

Game-related services, advertising and other
   revenues

370,434

592,525

627,393

90,953

Total net revenues

1,508,585

1,738,475

1,728,386

250,563

Cost of revenues(1)

(1,320,102)

(1,493,767)

(1,475,234)

(213,864)

Gross profit

188,483

244,708

253,152

36,699

Operating expenses(1)

Research and development expenses

(129,525)

(123,054)

(131,709)

(19,094)

Sales and marketing expenses

(60,695)

(78,066)

(88,067)

(12,767)

General and administrative expenses

(61,445)

(125,958)

(65,092)

(9,436)

Total operating expenses

(251,665)

(327,078)

(284,868)

(41,297)

Other income, net

3,534

17,516

2,927

424

Operating loss

(59,648)

(64,854)

(28,789)

(4,174)

Interest income

64,916

32,144

30,327

4,396

Impairment loss of investments

-

(81,458)

-

-

Foreign currency exchange losses, net

(416)

(2,182)

(1,703)

(247)

Income (loss) before income tax expenses

4,852

(116,350)

(165)

(25)

Income tax expenses

(3,248)

(1,662)

(2,631)

(381)

Income (loss) before (loss) gain in equity method
   investments, net of income taxes

1,604

(118,012)

(2,796)

(406)

(Loss) gain in equity method investments, net of
   income taxes

(677)

429

(1,271)

(184)

Net income (loss) attributable to HUYA Inc.

927

(117,583)

(4,067)

(590)

Net income (loss) attributable to ordinary
   shareholders

927

(117,583)

(4,067)

(590)

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

March 31,

2025

December 31,

2025

March 31,

2026

March 31,

2026

RMB

RMB

RMB

US$

Net income (loss) per ADS*

—Basic

0.00

(0.51)

(0.02)

0.00

—Diluted

0.00

(0.51)

(0.02)

0.00

Net income (loss) per ordinary share

—Basic

0.00

(0.51)

(0.02)

0.00

—Diluted

0.00

(0.51)

(0.02)

0.00

Weighted average number of ADS used in
   calculating net income (loss) per ADS

—Basic

229,451,944

229,212,223

229,705,246

229,705,246

—Diluted

231,527,507

229,212,223

229,705,246

229,705,246

*  Each ADS represents one Class A ordinary share.

(1) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three Months Ended

March 31,

2025

December 31,

2025

March 31,

2026

March 31,

2026

RMB

RMB

RMB

US$

Cost of revenues

3,383

3,335

2,435

353

Research and development expenses

6,313

5,561

4,437

643

Sales and marketing expenses

320

214

211

31

General and administrative expenses

8,048

13,720

13,512

1,959

HUYA INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

March 31,

2025

December 31,

2025

March 31,

2026

March 31,

2026

RMB

RMB

RMB

US$

Gross profit

188,483

244,708

253,152

36,699

Share-based compensation expenses allocated
   in cost of revenues

3,383

3,335

2,435

353

Non-GAAP gross profit

191,866

248,043

255,587

37,052

Operating loss

(59,648)

(64,854)

(28,789)

(4,174)

Share-based compensation expenses

18,064

22,830

20,595

2,986

Amortization of intangible assets from
   business acquisitions

5,996

5,915

5,466

792

Non-GAAP operating loss

(35,588)

(36,109)

(2,728)

(396)

Net income (loss) attributable to HUYA Inc.

927

(117,583)

(4,067)

(590)

Impairment loss of investments

-

81,458

-

-

Share-based compensation expenses

18,064

22,830

20,595

2,986

Amortization of intangible assets from
   business acquisitions, net of income taxes

4,977

4,910

4,537

658

Non-GAAP net income (loss) attributable
   to HUYA Inc.

23,968

(8,385)

21,065

3,054

Net income (loss) attributable to ordinary
   shareholders

927

(117,583)

(4,067)

(590)

Impairment loss of investments

-

81,458

-

-

Share-based compensation expenses

18,064

22,830

20,595

2,986

Amortization of intangible assets from
   business acquisitions, net of income taxes

4,977

4,910

4,537

658

Non-GAAP net income (loss) attributable
   to ordinary shareholders

23,968

(8,385)

21,065

3,054

Non-GAAP net income (loss) per ordinary
   share

—Basic

0.10

(0.04)

0.09

0.01

—Diluted

0.10

(0.04)

0.09

0.01

Non-GAAP net income (loss) per ADS

—Basic

0.10

(0.04)

0.09

0.01

—Diluted

0.10

(0.04)

0.09

0.01

Weighted average number of ADS used in
   calculating Non-GAAP net income (loss)
   per ADS

—Basic

229,451,944

229,212,223

229,705,246

229,705,246

—Diluted

231,527,507

229,212,223

233,646,621

233,646,621

SOURCE HUYA Inc.

HUYA Inc. (HUYA) Q1 2026 Earnings Call Transcript