HUYA Inc.

Hello, ladies and gentlemen. Thank you for standing by for the second quarter 2021 earnings conference call for HUYA Inc. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to Ms. Dana Cheng, Company Investor Relations. Please go ahead.

Hello, everyone, and welcome to HUYA's 2021 Second Quarter Earnings Conference Call. The company's financial and operational results were issued earlier today and are posted online. You can also view the earnings press release by visiting the IR website at ir.huya.com. A replay of the call will be available on the IR website in a few hours. Participants on today's call will be Mr. Rongjie Dong, Chief Executive Officer of HUYA, and Ms. Catherine Liu, Chief Financial Officer. Management will begin with prepared remarks, and the call will conclude with a Q&A session. Before we continue, please note that this discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, forward-looking statements involving hearing risks and uncertainties, As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's prospectus and other public followings as well as the U.S. SEC. The company does not assume any obligation to update any follow-looking statements except as required under applicable laws. Please also note that we have earnings press release and this conference call include discussions un-updated gap financial information, as well as un-updated non-gap financial measures. WHOYA's press release contains a reconciliation of the un-updated non-gap measures to the un-updated most directly comparable gap measures. I will now turn the call over to our CEO, Mr. Longjie Dong. Please go ahead.

Hello, everyone. Thank you for joining our conference call today. In the second quarter, we amplified our efforts to enrich content offerings and attract users, which drove standing top-line growth along with mobile user-based expansion. To illustrate, total net revenues for Q2 increased to approximately RMB 3 billion, up 10 percent year-over-year and 14 percent quarter-over-quarter we are live mobile emails reached 77.6 million in the quarter after slightly year-over-year and quarter-over-quarter while the next month the land retention rate for our who we are live app remained stable at over 70%. In this quarter, mobile users continued to contribute to over 85% of VR live streaming revenues. With our relentless commitment to providing users and the broadcasters with a better experience, we have always been deepening our technology-advanced efforts and focused on product optimization. In late May, we upgraded our Huya Live app to version 9.0, which introduced new functions such as multi-screen simultaneous viewing. and real-time highlight editing. For example, in the latest version, a user has access to a multi-screen viewing panel to watch different top broadcasters at the same time. Besides this, leveraging Huya's AI capability The new version can now automatically identify the highlight, momentum, our streaming sensing, and the generator video clippers, making video production easier and more efficient. In the second quarter, average who watch videos on our platform increased to approximately Our open platform for third-party applications developers also continued to expand in the second quarter. By the end of June, more than 250 tools had been developed on our open platform, and those tools were used by over 740,000 broadcasters. On a quarter-over-quarter basis, the daily active broadcasters who used third-party applications on our open platform grew more than 60%. Moving on to our collaboration with Tencent, in the second quarter, average emails who watched our live streaming content across Tencent platforms, which are not counted in our reported emails, were around 23 million, nearly doubling year-over-year. Notably, our live streaming content related to the QQ Celebrity All-Star Tournament attracted a large number of users for viewing on QQ Mobile. Lastly, I would like to provide more context around our strategies after the modular termination with Douyu we announced last month. According to the announcement posted by the State administration for market regulation of the People's Republic of China on July 10, 2011. The proposed merger between Huya and Douyu was prohibited following FAMR's antitrust review. We fully respect and will abide by the SAMR decision and will comply with all regulatory requirements and conduct our businesses in accordance with applicable laws and regulations. As we remain committed to further expanding our and strengthening our leading position in the game live streaming market. We are focused on effectively implementing our growth strategy. We will continue its investment in content, including acquiring, cultivating, and maintaining quality broadcasters. obtaining broadcasting rights for popular esports tournaments and developing attractive self-generated content. Meanwhile, we will endeavor to advance product optimization and deliver a super rare user experience. We also expect to further deepen our cooperation with Tencent. We are confident that our capabilities in fostering and retaining streaming talents, enriching and producing quality content, as well as our expertise in technology and product innovations, will continue to adapt Guya's core competitiveness in the game live streaming industry. With that, I will now turn the call over to our CFO, Catherine, to share her insights on the operating metrics and the financial details. Catherine, please go ahead.