HUYA Inc. Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results

GUANGZHOU,China,March 23,2021 -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA),a leading game live streaming platform in China,today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2020.

Fourth Quarter 2020 Highlights

Total net revenues for the fourth quarter of 2020 increased by 21.2% to RMB2,990.3 million (US$458.3 million),from RMB2,467.5 million for the same period of 2019.

Net income attributable to HUYA Inc. was RMB253.2 million (US$38.8 million) for the fourth quarter of 2020,representing an increase of 58.6% from RMB159.7 million for the same period of 2019.

Non-GAAP net income attributable to HUYA Inc.[1] was RMB305.9 million (US$46.9 million) for the fourth quarter of 2020,representing an increase of 26.5% from RMB241.9 million for the same period of 2019.

Average mobile MAUs[2] of Huya Live in the fourth quarter of 2020 reached 79.5 million,representing an increase of 29.1% from 61.6 million in the fourth quarter of 2019.

Average MAUs[3] of Huya Live in the fourth quarter of 2020 reached 178.5 million,representing an increase of 18.8% from 150.2 million in the fourth quarter of 2019.

Total number of paying users[4] of Huya Live in the fourth quarter of 2020 reached 6.0 million,representing an increase of 17.6% from 5.1 million in the fourth quarter of 2019.

"Throughout 2020 we have continuously invested in high-quality broadcasters,e-sports tournaments,and entertainment programs to enrich our content offerings,and have thus seen significant user growth and high level of user engagement,despite the challenges presented by the global COVID-19 pandemic," said Mr. Rongjie Dong,Chief Executive Officer of Huya. "Our mobile MAUs reached 79.5 million in the fourth quarter,an increase of 29.1% year-over-year. Moving through 2021,we will continue to make investments into our content offerings,improve our products,and extend the breadth and diversity of our platform,to provide users with more enjoyable experience."

Ms. Catherine Liu,Chief Financial Officer of Huya,commented,"We are pleased to deliver solid financial results in 2020. For the full year,our total net revenues were up 30.3%,reaching RMB10.9 billion and our net income increased by 88.9% to RMB884.2 million. The year 2020 ended on a strong note,with total net revenues and gross profit for the fourth quarter up 21.2% and 28.1%,respectively,year-over-year. With continued top-line expansion and our ability to drive operating leverage,our operating margin improved to 6.3% in the fourth quarter from 4.1%,and our non-GAAP operating margin increased to 9.0% from 7.4%,both compared with the same quarter of 2019. Leveraging our team's strong execution capabilities,we will continue to capture growth opportunities to drive value for our users and shareholders."

[1]"Non-GAAP net income attributable to HUYA Inc." is defined as net income attributable to HUYA Inc. before share-based compensation expenses,gain on fair value change of investments and equity investee's investments,and equity investee's partial disposal of its investment,net of income taxes. For more information,refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

[2]Refers to average monthly active users on mobile apps. Average mobile MAUs for any period is calculated by dividing (i) the sum of active users on the mobile apps for each month during such relevant period,by (ii) the number of months during such relevant period.

[3]Refers toaverage monthly active users on our platform. Average MAUs for any period is calculated by dividing (i) the sum of active users on our platform for each month during such relevant period,by (ii) the number of months during such relevant period.

[4]Refers to the sum of user accounts that purchased various products and services on our platform at least once during such relevant period.

Fourth Quarter 2020 Financial Results

Total net revenues for the fourth quarter of 2020 increased by 21.2% to RMB2,467.5 million for the same period of 2019.

Live streaming revenues increased by 20.0% to RMB2,814.9 million (US$431.4 million) for the fourth quarter of 2020,346.1 million for the same period of 2019,primarily due to the increase in the number of paying users and the average spending per paying user on Huya Live. The increase in the number of paying users was primarily driven by the Company's overall user growth. The increase in the average spending per paying user was primarily driven by the year-end promotional activities and the enrichment and enhancement of content,products and services.

Advertising and other revenues increased by 44.6% to RMB175.5 million (US$26.9 million) for the fourth quarter of 2020,from RMB121.3 million for the same period of 2019,primarily driven by the increasing and diversifying advertiser base,mainly attributable to strengthened recognition of Huya's brand name in China's online advertising market.

Cost of revenues increased by 19.6% to RMB2,392.7 million (US$366.7 million) for the fourth quarter of 2020 from RMB2,000.9 million for the same period of 2019,primarily attributable to the increase in revenue sharing fees and content costs.

Revenue sharing fees and content costs increased by 29.8% to RMB2,044.6 million (US$313.3 million) for the fourth quarter of 2020 from RMB1,575.1 million for the same period of 2019,primarily due to the increase in revenue sharing fees in relation to higher live streaming revenues,and the increase in spending in e-sports and self-produced content,as well as on content creators.

Bandwidth costs decreased by 26.1% to RMB166.7 million (US$25.5 million) for the fourth quarter of 2020 from RMB225.6 million for the same period of 2019,primarily due to improved management in bandwidth costs and continued technology enhancement efforts.

Gross profit increased by 28.1% to RMB597.7 million (US$91.6 million) for the fourth quarter of 2020 from RMB466.6 million for the same period of 2019. Gross margin increased to 20.0% for the fourth quarter of 2020 from 18.9% for the same period of 2019.

Research and development expenses increased by 21.0% to RMB215.7 million (US$33.1 million) for the fourth quarter of 2020 from RMB178.3 million for the same period of 2019,mainly attributable to increased personnel-related expenses.

Sales and marketing expenses increased by 63.2% to RMB193.1 million (US$29.6 million) for the fourth quarter of 2020 from RMB118.3 million for the same period of 2019,primarily attributable to the increased marketing expenses to promote the Company's content,products,services and brand name,as well as increased personnel-related expenses.

General and administrative expenses decreased by 0.3% to RMB96.1 million (US$14.7 million) for the fourth quarter of 2020 from RMB96.4 million for the same period of 2019,mainly due to improved management efficiency.

Operating income increased by 84.4% to RMB187.4 million (US$28.7 million) for the fourth quarter of 2020 from RMB101.6 million for the same period of 2019. Operating margin increased to 6.3% for the fourth quarter of 2020 from4.1% for the same period of 2019.

Non-GAAP operating income,which excludes share-based compensation expenses,increased by 46.5% to RMB269.3 million (US$41.3 million) for the fourth quarter of 2020 from RMB183.8 million for the same period of 2019. Non-GAAP operating margin increased to 9.0% for the fourth quarter of 2020 from 7.4% for the same period of 2019.

Income tax expenses increased by 35.1% to RMB37.3 million (US$5.7 million) for the fourth quarter of 2020 from RMB27.6 million for the same period of 2019.

Net income attributable to HUYA Inc. for the fourth quarter of 2020 increased by 58.6% to RMB253.2 million (US$38.8 million),from RMB159.7 million for the same period of 2019.

Non-GAAP net income attributable to HUYA Inc. for the fourth quarter of 2020,net of income taxes,increased by 26.5% to RMB305.9 million (US$46.9 million),from RMB241.9 million for the same period of 2019.

Diluted net income per American depositary share ("ADS") was RMB1.05 (US$0.16) for the fourth quarter of 2020,compared with RMB0.68 for the same period of 2019. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP diluted net income per ADS was RMB1.27 (US$0.19) for the fourth quarter of 2020,compared with RMB1.02 for the same period of 2019.

Balance Sheets and Cash Flow

As of December 31,2020,the Company had cash and cash equivalents,short-term deposits and short-term investments of RMB10,474.9 million (US$1,605.3 million),compared with RMB10,798.3 million as of September 30,2020. The decrease was primarily attributable to the land use right acquisition of approximately RMB310 million in Foshan City in November 2020.

Net cash provided by operating activities was RMB458.9 million (US$70.3 million) for the fourth quarter of 2020.

Fiscal Year 2020 Financial Results

Total net revenues in fiscal year 2020 increased by 30.3% to RMB10,914.4 million (US$1,672.7 million),from RMB8,374.5 million in the prior year.

Live streaming revenues increased by 29.3% to RMB10,311.6 million (US$1,580.3 million) in fiscal year 2020,from RMB7,976.2 million in the prior year,primarily due to the increase in the number of paying users and the average spending per paying user on Huya Live. The increase in the number of paying users was primarily driven by the Company's overall user growth. The increase in the average spending per paying user was primarily driven by the enrichment and enhancement of content,products and services.

Advertising and other revenues increased by 51.3% to RMB602.8 million (US$92.4 million) in fiscal year 2020,from RMB398.3 million in the prior year,mainly attributable to strengthened recognition of Huya's brand name in China's online advertising market.

Cost of revenues increased by 25.4% to RMB8,646.3 million (US$1,325.1 million) in fiscal year 2020 from RMB6,892.6 million in the prior year,primarily attributable to the increase in revenue sharing fees and content costs,bandwidth costs and personnel-related costs.

Revenue sharing fees and content costs increased by 27.6% to RMB7,086.8 million (US$1,086.1 million) in fiscal year 2020 from RMB5,552.7 million in the prior year,as well as on content creators.

Bandwidth costs increased by 9.8% to RMB879.2 million (US$134.7 million) in fiscal year 2020 from RMB800.8 million in the prior year,primarily due to an increase in bandwidth usage as a result of the Company's larger user base,partially offset by improved management in bandwidth costs and continuous technology enhancement efforts.

Gross profit increased by 53.0% to RMB2,268.1 million (US$347.6 million) in fiscal year 2020 from RMB1,481.9 million in the prior year. Gross margin increased to 20.8% in fiscal year 2020 from 17.7% in fiscal year 2019.

Research and development expenses increased by 44.3% to RMB734.3 million (US$112.5 million) in fiscal year 2020 from RMB508.7 million in the prior year,mainly attributable to increases in personnel-related expenses.

Sales and marketing expenses increased by 27.3% to RMB558.0 million (US$85.5 million) in fiscal year 2020 from RMB438.4 million in the prior year,as well as increased personnel-related expenses.

General and administrative expenses increased by 26.1% to RMB445.0 million (US$68.2 million) in fiscal year 2020 from RMB352.8 million in the prior year,mainly due to increase in personnel-related expenses.

Operating income increased by 177.4% to RMB725.0 million (US$111.1 million) in fiscal year 2020 from RMB261.4 million in the prior year. Operating margin increased to 6.6% in fiscal year 2020 from 3.1% in the prior year.

Non-GAAP operating income,increased by 108.6% to RMB1,133.2 million (US$173.7 million) in fiscal year 2020 from RMB543.1 million in the prior year. Non-GAAP operating margin increased to 10.4% in fiscal year 2020 from 6.5% in the prior year.

Income tax expenses increased by 84.0% to RMB176.8 million (US$27.1 million) in fiscal year 2020 from RMB96.1 million in the prior year.

Net income attributable to HUYA Inc. increased by 88.9% to RMB884.2 million (US$135.5 million) in fiscal year 2020 from RMB468.2 million in the prior year.

Non-GAAP net income attributable to HUYA Inc. in fiscal year 2020,increased by 68.2% to RMB1,261.5 million (US$193.3 million),from RMB749.9 million in the prior year.

Diluted net income per ADS was RMB3.71 (US$0.57) in fiscal year 2020,compared with diluted net income per ADS of RMB2.02 in the prior year.

Non-GAAP diluted net income per ADS was RMB5.29 (US$0.81) in fiscal year 2020,compared with RMB3.23 in the prior year.

Net cash provided by operating activities was RMB1,239.9 million (US$190.0 million) for fiscal year 2020.

Conference Call

The Company's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time on March 23,2021 (7:00 p.m. Beijing/Hong Kong time on March 23,2021).

For participants who wish to join the call,please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Upon registration,participants will receive the conference call access information,including dial-in numbers,Direct Event passcode,a unique registrant ID and an e-mail with detailed instructions to join the conference call.

Participant Online Registration: http://apac.directeventreg.com/registration/event/2296665

Once complete the registration,please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the Direct Event passcode and registrant ID as instructed to connect to the call.

Additionally,a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.huya.com.

A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until March 30,2021,by dialing the following telephone numbers:

United States:

+1-646-254-3697

International:

+61-2-8199-0299

Hong Kong,China:

+852-3051-2780

Replay Access Code:

2296665

About HUYA Inc.

HUYA Inc. is a leading game live streaming platform in China with a large and active game live streaming community. The Company cooperates with e-sports event organizers,as well as major game developers and publishers,and has developed e-sports live streaming as one of the most popular content genres on its platform. The Company has created an engaged,interactive and immersive community for game enthusiasts of China's young generation. Building on its success in game live streaming,Huya has also extended its content to other entertainment content genres. Huya's open platform also functions as a marketplace for broadcasters and talent agencies to congregate and closely collaborate with the Company.

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 income,non-GAAP net income attributable to HUYA Inc.,non-GAAP net income attributable to ordinary shareholders,and non-GAAP basic and diluted net 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 income is operating income excluding share-based compensation expenses. Non-GAAP net income attributable to HUYA Inc. is net income attributable to HUYA Inc. excluding share-based compensation expenses,net of income taxes. Non-GAAP net income attributable to ordinary shareholders is net income attributable to ordinary shareholders excluding share-based compensation expenses,net of income taxes. Non-GAAP basic and diluted net income per ADS is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses,and (ii) gain on fair value change of investments and equity investee's investments,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 measure for planning,forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses,which have been and will continue to be significant recurring expenses in its business,which both may recur when there is observable price change in the future. 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 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 similar titled measures used by other companies. In light of the foregoing limitations,you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure 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. Reconciliations of GAAP and Non-GAAP Results" near the end of this release.

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 RMB6.5250 to US$1.00,the rate in effect as of December 31,2020 as certified for customs purposes by the Federal Reserve Bank of New York.

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 business outlook and 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 game live streaming market; the expectation regarding the rate at which to gain active users,especially paying users; Huya's ability to monetize the user base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to Huya's business operations and the economy in China and elsewhere generally; any adverse changes in laws,regulations,rules,policies or guidelines applicable to Huya; the occurrence of any event,change or other circumstances that could give rise to the right of one or both of Huya and DouYu to terminate the definitive merger agreement between Huya and DouYu; the outcome of any legal proceedings that may be instituted against Huya,DouYu or their respective shareholders or directors; the ability to obtain regulatory approvals and meet other closing conditions to the merger,including the risk that regulatory approvals required for the merger are not obtained or are obtained subject to conditions that are not anticipated or that are material and adverse to Huya's or DouYu's business; a delay in closing the merger; the ability to obtain approval by DouYu's shareholders on the expected terms and schedule; business disruptions from the proposed merger that will harm Huya's or DouYu's business,including current plans and operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger; certain restrictions during the pendency of the merger that may impact Huya's or DouYu's ability to pursue certain business opportunities or strategic transactions; the ability of Huya or DouYu to retain and hire key personnel; uncertainty as to the long-term value of the Class A ordinary shares of Huya following the merger; the continued availability of capital and financing following the merger; Huya's ability to realize the intended synergies from the potential merger with DouYu; 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: ir@huya.com

The Piacente Group,Inc.

Jenny Cai

Tel: +86-10-6508-0677

E-mail: huya@tpg-ir.com

In the United States:

The Piacente Group,Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail: huya@tpg-ir.com

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,

2019

2020

2020

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

1,113,193

3,293,573

504,762

Restricted cash

1,392

164,889

25,270

Short-term deposits

6,743,445

5,974,790

915,677

Short-term investments

2,219,531

1,206,539

184,910

Accounts receivable,net

61,708

71,237

10,918

Amounts due from related parties

51,936

64,802

9,931

Prepayments and other current assets

400,615

495,108

75,879

Total current assets

10,591,820

11,270,938

1,727,347

Non-current assets

Deferred tax assets

45,816

48,313

7,404

Investments

379,424

467,206

71,602

Property and equipment,net

96,686

94,555

14,491

Intangible assets,net

45,085

62,796

9,624

Right-of-use assets,net

102,824

87,418

13,397

Prepayments and other non-current assets

104,895

379,461

58,155

Total non-current assets

774,730

1,139,749

174,673

Total assets

11,366,550

12,410,687

1,902,020

Liabilities and shareholders' equity

Current liabilities

Accounts payable

3,725

10,083

1,545

Advances from customers and deferred revenue

845,966

485,878

74,464

Income taxes payable

26,051

56,861

8,714

Accrued liabilities and other current liabilities

1,460,025

1,707,289

261,654

Amounts due to related parties

79,032

95,457

14,629

Lease liabilities due within one year

31,878

29,227

4,479

Total current liabilities

2,446,677

2,384,795

365,485

Non-current liabilities

Lease liabilities

70,110

57,620

8,831

Deferred tax liabilities

-

13,350

2,046

Deferred revenue

164,913

178,144

27,302

Total non-current liabilities

235,023

249,114

38,179

Total liabilities

2,681,700

2,633,909

403,664

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands,

2019

2020

2020

RMB

RMB

US$

Shareholders' equity

Class A ordinary shares (US$0.0001 par value;

750,000,000 shares authorized as of December

31,2019 and 2020,respectively; 67,101,314 and

83,490,841 shares issued and outstanding as of

December 31,respectively)

44

55

8

Class B ordinary shares (US$0.0001 par value;

200,respectively; 152,357,321

and 152,321 shares issued and outstanding

as of December 31,respectively)

100

100

15

Additional paid-in capital

10,081,946

11,465,575

1,757,176

Statutory reserves

64,679

122,429

18,763

Accumulated deficit*

(1,986,054)

(1,883,643)

(288,681)

Accumulated other comprehensive income

524,135

72,262

11,075

Total shareholders' equity

8,684,850

9,776,778

1,498,356

Total liabilities and shareholders' equity

11,020

* On January 1,the Company adopted ASC326,"Financial Instruments-Credit Losses" using modified-retrospective transition

approach. Following the adoption of this guidance,a cumulative-effect adjustment to accumulated deficit,amounting to RMB3.1

million,was recognized as of January 1,2020.

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three Months Ended

Twelve Months Ended

December 31,

2019

September 30,

2020

December 31,

2019

December 31,

2020

RMB

RMB

RMB

US$

RMB

RMB

US$

Net revenues

Live streaming

2,346,141

2,657,208

2,814,869

431,398

7,976,214

10,311,624

1,580,326

Advertising and others

121,329

157,632

175,473

26,892

398,287

602,750

92,375

Total net revenues

2,467,470

2,840

2,990,342

458,290

8,374,501

10,914,374

1,672,701

Cost of revenues(1)

(2,909)

(2,194,263)

(2,392,681)

(366,694)

(6,892,579)

(8,646,308)

(1,325,105)

Gross profit

466,561

620,577

597,661

91,596

1,481,922

2,268,066

347,596

Operating expenses(1)

Research and development expenses

(178,290)

(182,683)

(215,664)

(33,052)

(508,714)

(734,261)

(112,530)

Sales and marketing expenses

(118,324)

(143,846)

(193,110)

(29,595)

(438,396)

(558,012)

(85,519)

General and administrative expenses

(96,367)

(118,741)

(96,053)

(14,721)

(352,824)

(445,006)

(68,200)

Total operating expenses

(392,981)

(445,270)

(504,827)

(77,368)

(1,299,934)

(1,737,279)

(266,249)

Other income,net

28,046

47,613

94,519

14,486

79,390

194,169

29,758

Operating income

101,626

222,920

187,353

28,714

261,378

724,956

111,105

Interest and short-term investments income

88,346

75,919

73,993

11,340

304,491

313,366

48,025

Gain on fair value change of investments

-

-

-

-

-

2,160

331

Other non-operating expenses

-

-

-

-

-

(10,010)

(1,534)

Foreign currency exchange gains (losses),

net

99

4,677

(221)

(34)

1,157

2,056

315

Income before income tax expenses

190,071

303,516

261,125

40,020

567,026

1,032,528

158,242

Income tax expenses

(27,599)

(50,657)

(37,285)

(5,714)

(96,078)

(176,784)

(27,093)

Income before share of (loss) income in

equity method investments,net of

income taxes

162,472

252,859

223,840

34,306

470,948

855,744

131,149

Share of (loss) income in equity method

investments,net of income taxes

(2,802)

154

29,321

4,494

(2,775)

28,414

4,355

Net income attributable to HUYA Inc.

159,670

253,013

253,161

38,800

468,173

884,158

135,504

Net income attributable to ordinary

shareholders

159,504

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(All amounts in thousands,

2020

RMB

RMB

RMB

US$

RMB

RMB

US$

Net income per ADS*

—Basic

0.73

1.10

1.07

0.16

2.18

3.89

0.60

—Diluted

0.68

1.05

1.05

0.16

2.02

3.71

0.57

Net income per ordinary share

—Basic

0.73

1.10

1.07

0.16

2.18

3.89

0.60

—Diluted

0.68

1.05

1.05

0.16

2.02

3.71

0.57

Weighted average number of ADS used in

calculating net income per ADS

—Basic

219,382,541

230,554,718

236,099,598

236,598

214,811,862

227,238

227,238

—Diluted

236,144,302

240,474,833

240,985,724

240,724

232,024,961

238,631,613

238,613

* 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,

2020

RMB

RMB

RMB

US$

RMB

RMB

US$

Cost of revenues

14,806

17,352

17,003

2,606

31,593

64,942

9,953

Research and development expenses

36,369

42,552

36,653

5,617

86,296

150,723

23,099

Sales and marketing expenses

2,640

2,711

2,050

314

5,919

9,879

1,514

General and administrative expenses

28,370

45,549

26,281

4,028

157,936

182,664

27,994

HUYA INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands,

2020

RMB

RMB

RMB

US$

RMB

RMB

US$

Gross profit

466,596

Share-based compensation expenses allocated

in cost of revenues

14,953

Non-GAAP gross profit

481,367

637,929

614,664

94,202

1,513,515

2,333,008

357,549

Operating income

101,105

Share-based compensation expenses

82,185

108,164

81,987

12,565

281,744

408,208

62,560

Non-GAAP operating income

183,811

331,084

269,340

41,279

543,122

1,133,164

173,665

Net income attributable to HUYA Inc.

159,504

Gain on fair value change of investments and

equity investee's investments,and equity

investee's partial disposal of its investment,

net of income taxes

-

-

(29,231)

(4,480)

-

(30,851)

(4,728)

Share-based compensation expenses

82,560

Non-GAAP net income attributable to

HUYA Inc.

241,855

361,177

305,917

46,885

749,917

1,261,515

193,336

Net income attributable to ordinary

shareholders

159,560

Non-GAAP net income attributable to

ordinary shareholders

241,336

Non-GAAP net income per ordinary share

—Basic

1.10

1.57

1.30

0.20

3.49

5.56

0.85

—Diluted

1.02

1.50

1.27

0.19

3.23

5.29

0.81

Non-GAAP net income per ADS

—Basic

1.10

1.57

1.30

0.20

3.49

5.56

0.85

—Diluted

1.02

1.50

1.27

0.19

3.23

5.29

0.81

Weighted average number of ADS used in

calculatingNon-GAAP net income per

ADS

—Basic

219,613

View original content:/news-releases/huya-inc-reports-fourth-quarter-and-fiscal-year-2020-unaudited-financial-results-301253482.html