HUYA Inc.

Hello, ladies and gentlemen. Thank you for standing by for the third 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'll now turn the call over to Ms. Han Yu Liu, Company Investor Relations. Please go ahead.

Hello, everyone, and welcome to Huya's third quarter 2021 earnings conference call. The company's financials and operating 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. Ashley Wu, Vice President of Finance. Management will begin with the prepared remarks, and the call will conclude with a Q&A session. Before we continue, please know that today's discussion will contain forward-looking statements made under the Safe Harbor Provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and identities. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements. except as required under applicable law. Please also know that HUYA's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. HUYA's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited, most directly comparable GAAP measures. I will now turn the call over to our CEO, Mr. Rongjia Dong. Please go ahead.

Hello, everyone. Thank you for joining our conference call today. In the third quarter of 2021, we achieved solid results. Our mobile users reached record high levels, and we continued to steadily grow our top line. Huya Life's mobile emails reached 85.1 million in the third quarter, up 15% year-over-year, and 10% quarter-over-quarter. The strong user growth was mainly driven by our comprehensive content offerings, operational activities, and continued promotion. efforts during the summer esports events. The next month's retention rate for our Huya Live app also remained stable at over 70%. As a technology-driven platform, we have been continuously focused on product and service upgrades to deliver more fun and immersive experience to our users. In particular, we actively promoted the development and application of more interactive features in live streaming, supporting broadcasters' ability to produce quality content more conveniently. as well as make it easier for our users to participate while viewing live streams. I will now provide you with some updates on those initiatives. Our open platform for third-party application developers has been up and running for almost two years. By the end of September, More than 290 tools had been developed on this open platform, and over 880,000 broadcasters covering our core categories, including esports, tournaments, games, and pen entertainment, had used Ctools. In particular, the recently added Capabilities for multi-user participation, such as draw and guest header, and mecha fights are now quite popular. More users can join the streaming interaction and gifting, and the bullet chats sent by users can also influence battle results. This increases the interactivity between broadcasters, helping users to effectively level up and strengthen the monetization capabilities of broadcasters. In August, we introduced a feature called Coded One Click to Join Broadcasters Gameplay. It was first applied in Peacekeeper Elite channels. With this interactive gaming function, users can team up with streamers to play games while watching live streaming sessions. The gift drop feature we released earlier this year is now available in more games. including the latest LOL Wild Rift. Through our cooperation with the game studio, Gift Drop will be triggered in a live channel for users to claim game tools and skins after downloading this new game. Achieving a certain length of viewing time or when a broadcaster strikes us a certain cue. It enhances the engagement in the streaming session as well as the participating patient of the game itself. We believe the introduction of these interactive features not only offers more innovative gameplay for our users and the broadcasters, it also improves the uniqueness how we are to game studios. More importantly, it opens up more opportunities for our deep penetration in the game value chain. In terms of streaming technologies, we recently added HDR support to our esports tournament streaming, enabling users to enjoy more delicate game scenes compared to the existing Ultra HD experience. While leveraging our self-developed voice recognition technology for game live streaming, the newly launched AI captioning function identifies accurate game terms as well as player and team names and provide real-time subtitles for live events. Together with our live event instant playback and simultaneous multi-screen viewing functions, we were able to provide the best tournament viewing experience so far. in the recently concluded 2021 Season of League of Legends World Championships. Supported by the above-mentioned technologies and our operational expertise, we continued our leading market share in Broadcasting World 2021. In light of the dynamic business environment, it is pivotal for us to strengthen our competitive advantages. This primarily resides in fostering and retaining streaming talent, enriching and producing quality content, and delivering technology and product innovations. We are also confident that we can capture the opportunities brought by the new game launches. In recent quarters, there has been more regulatory attention surrounding our industry. We believe that the intention is to better regulate the space and promote its healthy long-term development. We have been closely monitoring and following the regulatory guidelines and will continue to strengthen our operations in accordance with regulatory requirements. Despite the potential impact of regulatory changes on our near-term growth, we believe in our agility and ability to remain competitive and relevant to great long-term value as we continue investing in quality content, upgrading products, driven user growth, improving monetization and solidifying our leading position in the game live streaming market. With that overview, I will now introduce our VP of Finance, Ashley Wu, who has been with Huya for years and has extensive company and industry knowledge. She will provide you with operating metrics in more detail and our financial assessment. Ashley, please go ahead.