• Building on its success in developing continuous production at pilot-scale with the WuXiUP™ platform, WuXi Biologics has further enhanced the technology to achieve automated continuous drug substance (DS) manufacturing at pilot-scale. This advancement integrates industry-leading technologies, including membrane chromatography and automated control systems, along with iterative enhancements to Process Analytical Technology (PAT).
• The WuXiUP™ automated continuous production platform will deliver greater value as it boosts manufacturing efficiency and product quality, enabling clients to accelerate the journey of their innovative therapies from development to commercialization.

SHANGHAI, Aug. 12, 2025 /PRNewswire/ — WuXi Biologics (2269.HK), a leading global Contract Research, Development, and Manufacturing Organization (CRDMO), today announced that its intensified perfusion culture process platform, WuXiUP™, has achieved end-to-end, fully automated continuous drug substance（DS）production at pilot scale. The automated continuous production platform will be deployed across the company’s major GMP facilities, offering clients greater efficiency and flexibility to accelerate the journey of their innovative therapies from development to commercialization.

By fully integrating an automated system, the continuous production platform enables non-stop 24/7 operation, which minimizes manual intervention, reduces quality risks, and enhances manufacturing efficiency. In upstream processes, WuXiUP^TM has accomplished exceptional performance: 24 days of continuous cell culture yields a total output that exceeds 110 g/L, with a peak daily yield of 7.6 g/L. For downstream purification, WuXiUP™ incorporates a two-step, high-efficiency membrane chromatography system. Compared to traditional resin-based stationary phases, this technology enables faster mass transfer, delivering a 5- to 10-fold increase in productivity.

To strengthen quality control throughout downstream continuous purification, WuXiUP™ employs advanced, iteratively improved Process Analytical Technology (PAT), which provides real-time monitoring and feedback on critical parameters in Harvested Clarified Cell Culture Fluid (HCCF), including protein purity, concentration, pH, and conductivity. When integrated with the automated closed-loop control system, the technology utilizes Residence Time Distribution (RTD) analysis to intelligently divert out-of-spec samples, significantly enhancing manufacturing procedure control.

Dr. Chris Chen, CEO of WuXi Biologics, commented: “The WuXiUP™ platform has already proved its technical maturity and viability in commercial manufacturing. And now it has reached another significant milestone: accomplishing fully automated continuous DS production at pilot scale. Such achievements underscore WuXi Biologics’ steadfast dedication to furthering technological innovation, and advancing the standards for digitalization and automation in biopharmaceutical R&D and manufacturing — both of which are critical capabilities to improve quality and accelerate timelines. With our deep technical expertise and extensive track record, WuXi Biologics remains committed to enabling our global clients to speed drug development more efficiently, benefiting patients worldwide.”

About WuXiUP^TM 

WuXiUP^TM is an intensified perfusion culture process developed as a next-generation biomanufacturing solution that provides high-yield, high-quality drug products while being highly flexible and cost-effective. Compared to traditional fed-batch and perfusion processes, WuXiUP^TM enables the manufacturing of diverse pharmaceutical proteins, including mAb, bispecific antibody, fusion protein, and other recombinant protein, with 5–20× higher productivity.

This performance advantage is particularly notable when scaling to 1,000–2,000 L using single-use bioreactors, where it achieves productivity levels comparable to those of traditional 10,000–20,000 L stainless steel bioreactors. The WuXiUP^TM platform has enabled one molecule to receive BLA approval and 11 others to receive IND approvals.

SHENZHEN, China, Aug. 12, 2025 /PRNewswire/ — Tencent Music Entertainment Group (“TME,” or the “Company”) (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Financial Highlights

• Total revenues were RMB8.44 billion (US$1.18 billion), representing a 17.9% year-over-year increase, primarily due to strong year-over-year growth in revenues from online music services, and partially offset by a decline in revenues from social entertainment services and others.
• Revenues from online music services were RMB6.85 billion (US$957 million), representing 26.4% year-over-year growth. Revenues from music subscriptions were RMB4.38 billion (US$611 million), representing 17.1% year-over-year growth. Monthly ARPPU grew to RMB11.7 from RMB10.7 in the same period of 2024.
• Net profit attributable to equity holders of the Company was RMB2.41 billion (US$336 million), representing 43.2% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company^[1] was RMB2.57 billion (US$359 million), representing 37.4% year-over-year growth.
• Diluted earnings per ADS was RMB1.55 (US$0.22), up from RMB1.07 in the same period of 2024. Non-IFRS diluted earnings per ADS was RMB1.66 (US$0.23), up from RMB1.19 in the same period of 2024.
• Total cash, cash equivalents, term deposits and short-term investments as of June 30, 2025 were RMB34.92 billion (US$4.87 billion).

Mr. Cussion Pang, Executive Chairman of TME, commented, “We delivered high-quality growth in the second quarter, achieving solid year-over-year increases in both revenue and profitability. While our music subscription business remained a core growth driver, our expanding suite of music-related services—including advertising, concerts, and artist merchandise—showed impressive momentum. As we continue to scale our platform, we are focused on building a vibrant, one-stop music service destination that empowers content creators and reshapes connections with music lovers in meaningful ways.”

Mr. Ross Liang, CEO of TME, continued, “Our focus on product innovation to deliver immersive user experiences has driven solid growth in our online music business. This is reflected in the continued expansion of both our subscriber base and ARPPU, along with deeper user engagement. We are especially pleased to see our SVIP subscribers recently surpass 15 million, a new milestone reflecting the deep trust and loyalty of our users. We see great potential in the music entertainment space and remain committed to investing in new initiatives that create lasting value and impact to music creators and consumers.”

Second Quarter 2025 Operational Highlights 

• Key Operating Metrics

Building a richer content ecosystem to support long-term growth.

• Expanded partnerships with record labels and artists, home and abroad. 1) Strengthened our K-pop offerings by establishing cooperation with The Black Label and H MUSIC for the first time. 2) Extended collaboration with renowned Chinese artist Wang Feng, featuring both classic music repertoire and latest releases.
• Innovative approaches to content co-production boosted our content appeal and promoted cultural exchange. 1) Partnered with SM Entertainment, NCT CHENLE’s Chinese EP *Lucid* showcases cross-border collaborative efforts in content creation. Our omni-channel approach to promote the EP through a series of online and offline campaigns broadened our user reach and strengthened user engagement. 2) The theme song that we produced for popular movie THE LYCHEE ROAD, performed by Chen Chusheng, received widespread acclaim from both viewers and critics. 3) Formed a strategic partnership with Zhejiang Satellite TV to not only secure the music rights for popular variety shows, such as The Treasured Voice and Shining Summer, but also collaborate on content creation, artist promotion, and more.

TME’s enhanced brand and platform value, together with tailored approaches to support artists home and abroad, has gained increasing recognition.

• Achieved resounding success in staging large-scale concerts for renowned artists. 1) Hosted our first international grand concert tour for leading Korean artist G-DRAGON in Macau, where over 36,000 fans immersed in a captivating atmosphere, with on-site official merchandise rapidly selling out. Following a strong kickoff, the tour has been scheduled to expand into other regions this year. 2) Successfully organized a series of stadium concerts for Fiona Sit, TIA RAY and rapper GAI^[2], and growing their audience base in China.
• Our ability to curate live music concerts of all sizes has made us a partner of choice for staging emerging artists. In the first half of 2025, we facilitated over 300 offline performance opportunities for nearly 100 artists and groups from Tencent Musician Platform, featuring our proprietary IPs CITY LIVE and BUFF LIVE with great success. Our cross-platform promotions propelled several works to trending hits, including Xiang Sisi’s Why Not Wait for the Wind, which amassed over 20 million streams and topped multiple music charts.
• Partnered with DearU to launch bubble on QQ Music, an interactive community that allows users to engage directly with hundreds of K-pop artists from labels, such as SM, JYP, and CUBE. We intend to also invite some popular Chinese artists to the community to foster deeper, more personal connections.

Concerted and innovative efforts to enhance product appeal successfully led to improved user engagement, increased SVIP adoption, and new monetization opportunities.

• Premium sound quality remains the most popular SVIP membership benefit. In the second quarter, Kugou Music pioneered VIPER HiFi sound quality and One-Click Audio Enhancement 2.0, delivering tailored music experiences for diverse use cases. We also upgraded voice extraction features with the industry’s first AI Chorus function, redefining the live concert sing-along experience for users.
• On conversion, artist-centric privileges have become increasingly effective at boosting SVIP adoptions, including 1) digital albums, with standout releases like Hold Me Close by A-Lin and JJ Lin and Pleasure by Jolin Cai; 2) priority access to concert tickets, such as in-demand events by G-DRAGON and BLACKPINK; and 3) star card series in collaboration with artists such as JC-T, Silence Wang and aespa.
• To enrich the ways that our members enjoy music, we have worked closely with leading car manufacturers and a wide range of models to deliver a premium in-car music experience. Highlights included a comprehensive partnership with Geely and integration with Xiaomi’s first SUV, YU7.
• Newly launched ad-based membership, together with optimized advertising formats and incentives, boosted user engagement and advertising effectiveness, which in turn led to strong year-over-year advertising revenue growth.

Second Quarter 2025 Financial Review

Total revenues increased by RMB1.28 billion, or 17.9%, to RMB8.44 billion (US$1.18 billion) from RMB7.16 billion in the same period of 2024.

• Revenues from online music services increased by 26.4% to RMB6.85 billion (US$957 million), compared with RMB5.42 billion in the same period of 2024. The increase was driven by solid growth in music subscription revenues, supplemented by growth in revenues from advertising services, artist-related merchandise and offline performances. Revenues from music subscriptions were RMB4.38 billion (US$611 million), representing 17.1% year-over-year growth, compared with RMB3.74 billion in the same period of 2024. The rapid growth was mainly driven by the improved monthly ARPPU, which increased to RMB11.7 in the second quarter of 2025 from RMB10.7 in the same period of 2024. This growth of monthly ARPPU was primarily due to expansion of the SVIP membership program, as we continue to enrich SVIP membership privileges for our users. The year-over-year increase in revenues from advertising was primarily due to our more diversified product portfolio and innovative ad formats, such as ad-supported mode. Additionally, revenues from artist-related merchandise and offline performances achieved robust growth.
• Revenues from social entertainment services and others decreased by 8.5% to RMB1.59 billion (US$222 million) from RMB1.74 billion in the same period of 2024.

Cost of revenues increased by 13.1% year-over-year to RMB4.69 billion (US$655 million), mainly due to increased IP related costs, such as costs for artist-related merchandise, costs related to offline performances and advertising agency fees. Meanwhile, revenue sharing fees decreased as a result of the decline in revenues from social entertainment services.

Gross margin increased to 44.4% from 42.0% in the same period of 2024, primarily due to strong growth in revenues from music subscriptions and advertising services, and the decline in revenue sharing ratio of social entertainment services. Meanwhile, the growth in revenues from artist-related merchandise and offline performances had offsetting impact on gross margin increase.

Total operating expenses were RMB1.16 billion (US$161 million), which was relatively stable compared with the same period of 2024. Operating expenses as a percentage of total revenues decreased to 13.7% from 16.0% in the same period of 2024.

Total operating profit was RMB2.98 billion (US$416 million) in the second quarter of 2025, representing a 35.5% year-over-year increase.

Income tax expenses for the second quarter of 2025 were RMB515 million (US$72 million), compared with RMB432 million in the same period of 2024. We accrued withholding income tax of RMB118 million (US$16 million) in the second quarter of 2025.

For the second quarter of 2025, net profit was RMB2.47 billion (US$344 million) and net profit attributable to equity holders of the Company was RMB2.41 billion (US$336 million). Non-IFRS net profit was RMB2.64 billion (US$369 million) and non-IFRS net profit attributable to equity holders of the Company was RMB2.57 billion (US$359 million). Please refer to the section in this press release titled “Non-IFRS Financial Measure” for details.

Basic and diluted earnings per American Depositary Shares (“ADS”) for the second quarter of 2025 were RMB1.57 (US$0.22) and RMB1.55 (US$0.22), respectively; non-IFRS basic and diluted earnings per ADS were RMB1.68 (US$0.23) and RMB1.66 (US$0.23), respectively. For the second quarter of 2025, the Company had weighted averages of 1.53 billion basic and 1.55 billion diluted ADSs outstanding, respectively. Each ADS represents two of the Company’s Class A ordinary shares.

As of June 30, 2025, the combined balance of the Company’s cash, cash equivalents, term deposits and short-term investments amounted to RMB34.92 billion (US$4.87 billion), compared with RMB37.67 billion as of March 31, 2025.

Environmental, Social, and Governance (“ESG”)

We continue to unlock the social value of music and its healing powers. This quarter, we launched the ‘Hearing Guizhou’ project, leveraging AI technology to promote better relaxation and sleep through natural instruments and immersive soundscapes.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Non-IFRS Financial Measure

The Company uses non-IFRS net profit for the period, which is a non-IFRS financial measure, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS net profit helps identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its profit for the period. TME believes that non-IFRS net profit for the period provides useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

Non-IFRS net profit for the period should not be considered in isolation or construed as an alternative to operating profit, net profit for the period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS net profit for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS net profit for the period 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 the Company’s data. TME encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Non-IFRS net profit for the period represents profit for the period excluding amortization of intangible and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments and related income tax effects.

Please see the “Unaudited Non-IFRS Financial Measure” included in this press release for a full reconciliation of non-IFRS net profit for the period to its net profit for the period.

About Tencent Music Entertainment

Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading online music and audio entertainment platform in China, operating the country’s highly popular and innovative music apps: QQ Music, Kugou Music, Kuwo Music and WeSing. TME’s mission is to create endless possibilities with music and technology. TME’s platform comprises online music, online audio, online karaoke, music-centric live streaming and online concert services, enabling music fans to discover, listen, sing, watch, perform and socialize around music. For more information, please visit ir.tencentmusic.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact 
Tencent Music Entertainment Group
ir@tencentmusic.com
+86 (755) 8601-3388 ext. 885034

HONG KONG, Aug. 12, 2025 /PRNewswire/ — China Literature Limited (“China Literature” or “the Company”, stock code: 0772), a leading online literature and intellectual property (“IP”) incubation platform in China, today announced the unaudited consolidated results for the six months ended June 30, 2025.

Results Highlights ⁽¹⁾

• Total revenues were RMB3,190.6 million (USD445.7 million), compared with RMB4,190.9 million in the first half of 2024.
  – Revenues from online business increased by 2.3% year-over-year to RMB1,985.4 million (USD277.3 million), mainly due to the revenue growth of self-owned platform products.
  – Revenues from intellectual property operations and others decreased by 46.4% year-over-year to RMB1,205.2 million (USD168.4 million), mainly attributable to the absence of new TV series or film releases from New Classics Media (“NCM”) in the first half of the year, reflecting the inherent development cycles and scheduling of TV series and film projects.
• On an IFRS basis:
  – Profit attributable to equity holders of the Company increased by 68.5% year-over-year to RMB849.8 million (USD118.7 million).
  – Basic earnings per share were RMB0.84. Diluted earnings per share were RMB0.83.
• On a non-IFRS ⁽²⁾ basis, which is intended to reflect core earnings by excluding certain one-time and/or non-cash items:
  – Profit attributable to equity holders of the Company was RMB507.8 million (USD70.9 million), compared with RMB702.1 million in the first half of 2024, influenced by the uneven release schedules for TV series and films of NCM within this year. Excluding this impact, non-IFRS profit attributable to equity holders of the Company increased by 35.7% year-over-year to RMB545.3 million (USD76.2 million).
  – Basic earnings per share were RMB0.50. Diluted earnings per share were RMB0.50.

Mr. Hou Xiaonan, Chief Executive Officer of China Literature, commented, “In the first half of 2025, our online reading content ecosystem continued to flourish, with revenues from online business increasing by 2.3% year-over-year to RMB1.99 billion. In terms of our IP operation business, China Literature’s IPs have consistently excelled across premium TV series, animation, and comics. Additionally, we made breakthroughs in emerging segments such as short dramas and IP merchandising. The success rate of blockbuster short dramas saw significant improvement, and our IP merchandise business achieved a GMV of RMB480 million – nearly matching last year’s annual total, underscoring its strong momentum of development.

Overall, the year 2025 will be a pivotal period for fostering strong growth momentum. The rapid rise of short dramas, the breakout popularity of trendy toys, and the spreading influence of goods culture are driving new types of content and consumption patterns into the mainstream at an unprecedented pace. This evolution not only highlights the vibrancy of the cultural consumption market but also reaffirms the fundamental core principle: major breakthroughs in growth are driven by the creative transformation and contextual development of premium IP. With this historic opportunity in front of us, we will capitalize on our vast IP library, extensive experience, and established cross-industry synergies we have cultivated over multiple years to reshape the industry landscape and drive its development. Looking ahead, we remain committed to becoming the key driving force and lead architect of China’s evolving IP ecosystem.”

Financial Review ⁽³⁾

Revenues were RMB3,190.6 million (USD445.7 million), compared with RMB4,190.9 million in the first half of 2024.

Revenues from online business increased by 2.3% year-over-year to RMB1,985.4 million (USD277.3 million).

i)       Online business revenues from self-owned platform products increased by 3.1% year-over-year to RMB1,746.0 million (USD243.9 million), due to the Company’s focus on improving core product operations and continuous production of high-quality content;

ii)      Online business revenues from channels on Tencent products decreased by 25.6% year-over-year to RMB97.1 million (USD13.6 million), primarily due to a decline in advertising revenues associated with the continuous refinement of content distribution practices on Tencent channels and prioritization of distribution through core pay-to-read products; and

iii)     Online business revenues from third-party platforms increased by 23.1% year-over-year to RMB142.2 million (USD19.9 million), reflecting the increasing value of the Company’s high-quality content to partners.

Revenues from IP operations and others decreased by 46.4% year-over-year to RMB1,205.2 million (USD168.4 million).

i)       Revenues from IP operations decreased by 48.4% year-over-year to RMB1,137.5 million (USD158.9 million), mainly attributable to the absence of new TV series or film releases in the first half of the year, reflecting the inherent development cycles and scheduling of TV series and film projects. Meanwhile, several new businesses have been developing rapidly, particularly the IP merchandise business, which generated strong growth with GMV increasing to RMB480 million in the first half of the year, nearly reaching the full-year total of RMB500 million in 2024; and

ii)      Revenues from the “others” category, mainly generated by sales of physical books, increased by 41.9% year-over-year to RMB67.7 million (USD9.5 million).

Cost of revenues decreased by 25.1% year-over-year to RMB1,578.2 million (USD220.5 million). The decrease was primarily due to the absence of new TV series or film releases in the first half of the year, which resulted in no corresponding production costs being recognized during the period.

Gross profit was RMB1,612.4 million (USD225.2 million), compared with RMB2,083.2 million in the first half of 2024. Gross margin was 50.5%, compared with 49.7% in the first half of 2024.     

Interest income was RMB81.9 million (USD11.4 million), compared with RMB90.6 million in the first half of 2024.

Net other gains were RMB582.5 million (USD81.4 million), compared with net other losses of RMB3.7 million in the first half of 2024. Net other gains of this period were primarily related to investment activities.

Selling and marketing expenses decreased by 20.4% year-over-year to RMB922.4 million (USD128.9 million), mainly due to a decrease in marketing and promotional expenses associated with TV series and films.

General and administrative expenses decreased by 11.0% year-over-year to RMB484.7 million (USD67.7 million), primarily due to lower employee-related expenses.

Net reversal of impairment losses on financial assets was RMB6.2 million (USD0.9 million), mainly due to the recovery of previously impaired receivables related to IP operations.

Operating profit increased by 92.7% year-over-year to RMB875.8 million (USD122.3 million). On a non-IFRS basis, operating profit was RMB448.7 million (USD62.7 million), compared with RMB624.2 million in the first half of 2024.

Income tax expense was RMB149.5 million (USD20.9 million), compared with RMB99.1 million in the first half of 2024, primarily due to the increase in taxable income.

Profit attributable to equity holders of the Company increased by 68.5% year-over-year to RMB849.8 million (USD118.7 million). On a non-IFRS basis, profit attributable to equity holders of the Company was RMB507.8 million (USD70.9 million), down from RMB702.1 million in the first half of 2024, influenced by the uneven release schedules for TV series and films of NCM within this year. Excluding this impact, non-IFRS profit attributable to equity holders of the Company increased by 35.7% year-over-year from RMB401.7 million in the first half of 2024 to RMB545.3 million (USD76.2 million).

Key Operating Information

–        Average MAUs on self-owned platform products and self-operated channels on Tencent products were 141.3 million in the first half of 2025, compared with 176.0 million in the first half of 2024.

i)       MAUs on self-owned platform products declined by 2.5% year-over-year from 105.3 million to 102.7 million but remained largely stable compared with 102.3 million on a six-month basis; and

ii)      MAUs on self-operated channels on Tencent products were 38.5 million, compared with 70.7 million in the first half of 2024, primarily due to ongoing optimization of operational efficiency by concentrating more content distribution through core pay-to-read products which resulted in a decline in active users on free-to-read channels.

–        Average MPUs on self-owned platform products and self-operated channels on Tencent products increased by 4.5% year-over-year to 9.2 million in the first half of 2025, driven primarily by the launch of additional membership content since the second half of 2024.

–        Monthly ARPU for pay-to-read business decreased by 1.3% year-over-year to RMB31.3, mainly due to a mix effect from lower ARPU contributions from newly acquired membership users.

Other Key Information

–        EBITDA was RMB318.2 million (USD44.5 million), compared with RMB501.5 million in the first half of 2024. Adjusted EBITDA was RMB386.9 million (USD54.0 million), compared with RMB587.6 million in the first half of 2024.

–        As of June 30, 2025, the Company’s net cash position was RMB9,573.0 million (USD1,337.3 million), compared with RMB9,935.7 million as of December 31, 2024.

Business Review

During the first half of 2025, China’s IP industry saw rapid growth and major transformations occurred throughout the ecosystem. The changes can be summarized across three key areas:

• Premium IP continues to increase in value. The traditional model of incubating high-quality TV series and film content based on literary IP remains robust and is consistently producing top-tier works with widespread influence and commercial success.
• The rapid emergence of short dramas is reshaping content consumption, driving higher conversion efficiency and creating powerful new monetization opportunities for the massive library of mid- and long-tail IP. This has significantly accelerated the unlocking of IP value and driven diversification in digital content consumption.
• Physical and scenario-based IP merchandise such as trendy toys, collectible cards, and goods continue to grow in popularity. This shows how IP is becoming deeply embedded into consumers’ daily lives, serving as a key medium for emotional connection, companionship, and social identity – essentially functioning like a social currency.

Together, these trends highlight the rapid evolution of China’s IP industry over the first half of 2025. As the industry pivots, our exceptional IP innovation capabilities and expansive IP library ideally position us to capitalize on the moment. Furthermore, we see an opportunity to play a leading role in the evolution of China’s IP ecosystem and unlock new growth potential.

IP Creation

Our online reading content ecosystem continues to thrive. In the first half of 2025, our online reading platform added approximately 200,000 writers and 410,000 literary works, collectively contributing approximately 20 billion Chinese characters. High-quality writers and literary works on our platform are growing steadily, with the number of newly signed works generating over RMB1 million in revenue increasing by 63% year-over-year during the first half of the year. Additionally, the number of newly signed writers with over 10,000 average subscribers per chapter rose by 45% year-over-year. The vibrancy of our content ecosystem is reflected in community engagement metrics: the number of works receiving over 10,000 monthly votes during the first half of the year increased by 20% year-over-year, and those surpassing 1 million monthly votes surged by 200% year-over-year.

As a result of these initiatives, revenue from our online business grew by 2.3% year-over-year to RMB1.99 billion and MPU increased by 4.5% year-over-year to 9.2 million.

IP Visualization

In the premium TV segment, several top-tier series adapted from our IPs premiered in the first half of the year, including “Flourished Peony”, “Si Jin”, “The Glory” and “I am Nobody” which all consecutively ranked first in popularity during their respective broadcasting periods. According to Enlightent data, six out of the top 10 long-form dramas by cumulative views across all platforms in the first half of 2025 were adapted from our IPs. During the summer season in July, our self-produced premium drama series “The Narcotic Operation” debuted on Tencent Video, achieving a popularity index of over 28,000 and earning favorable reviews from multiple mainstream media outlets. We have several additional premium drama projects planned for release in the second half of the year.

In the animation segment, we released new series from our classic animation franchises such as “Battle Through the Heavens”, “Stellar Transformations” and “Martial Universe” They all achieved top rankings on platform popularity charts during their respective broadcasting runs. Notably, the annual series “Battle Through the Heavens” topped Tencent Video’s paid content chart in the first half of this year. According to Enlightent data, eight out of the top 10 animation series by cumulative views across all platforms in the first half of 2025 were adapted from our IPs.

In the comics segment, we maintained market leadership through our premium IPs while expanding our content ecosystem with high-quality new titles. Established IPs like “The Outcast” and “The Fox Spirit Matchmaker” continued to thrive, highlighting their enduring influence. Meanwhile, standout new titles adapted from our IP performed strongly. Notably, “Dao of the Bizarre Immortal” broke into the top 20 paid bestsellers list within two months of release, setting an industry record for the fastest ascent by a new title. Another adaptation, “Martial Evolution: Start by Awakening the King of Monsters” also topped new release charts for four consecutive months since debuting in April, reflecting strong market appeal and long-term growth potential.

In the short drama segment, we achieved robust growth in the first half of 2025, with a significant increase in the success rate of blockbuster productions. This success is underpinned by our rich IP library, strong creator partnerships, and deep engagement across the IP industry chain. According to Enlightent data, we produced two out of the top 10 short dramas by viewership across all platforms in June 2025. One title generated record-breaking revenue of over RMB80 million, ranking second on Enlightent’s viewership charts with over 3 billion views this year. Another title topped Enlightent’s weekly charts during its broadcasting run, surpassing 1 billion views in its first month of release. In March, we further upgraded our short drama business by opening more than 2,000 online literature IPs for high-quality adaptation. We released an initial batch of 300 IPs and invited screenwriters and producers across the industry to collaborate. Going forward, we remain committed to our “IP-centric, quality-driven” strategy, strengthening our competitive edge while driving the high-quality development of the short drama industry.

IP Commercialization and Monetization

In the first half of 2025, physical and scenario-based IP merchandise products such as trendy toys, collectible cards, and goods saw rapid growth, highlighting a major shift in mass cultural consumption habits. We responded by capitalizing on this trend, and as a result, our IP merchandise business achieved major breakthroughs.

Our IP merchandise business generated GMV of RMB480 million in the first half of the year, nearly matching last year’s full-year total of RMB500 million. This rapid growth was driven by our continued dedication to product development, channel development, user engagement, and licensing expansion.

• Product Development: We made significant progress advancing rapidly across the entire value chain for product development, including original artwork, design, and craftsmanship. This enabled us to accelerate new product launches to 3-4 times the previous year’s pace while simultaneously enhancing product quality.
• Channel Development: Our online live-streaming rooms and offline stores have expanded steadily. During the 618 shopping festival, our Tmall flagship store ranked first on Taobao’s “Trending Goods Store Dark Horse List.” We now partner with nearly 10,000 online and offline distributors. Additionally, we are offering our channel development capabilities to empower others.
• User Engagement: We strengthened connections with fans and generated strong social media engagement by hosting themed events around our premium IPs, including “The King’s Avatar”, “Lord of the Mysteries” and “Dao of the Bizarre Immortal” and seamlessly integrating them with new product launches.
• Licensing Expansion: We partnered with 230 brands to further expand the influence of our IPs.

In the gaming segment, we continue to license premium IPs to our partners. The flagship title “Douluo Continent: Soul Hunting World” generated immense enthusiasm from gamers upon its launch in July this year. Additionally, several licensed adaptations, including “The Hidden Ones” and “Lord of the Mysteries” have obtained publication licenses and are expected to release in the near future.

Exploration in New Technologies

We have been actively embracing and integrating AI across our business.

In the first half of the year, we introduced the industry’s first AI-powered knowledge base for online literature, “Smart Pen Tongjian” built upon our existing AI tools available on the “Writer Assistant” creation platform. This feature enables full-text comprehension and Q&A for works spanning tens of millions of words, offering valuable support for writing, plot development, and inspiration for long-form content creation. Since its launch, interactions between writers and AI have increased by 40%, driving daily active users of “Writer Assistant” up by over 40% year-over-year, with weekly AI usage approaching 70%.

Our AI translation models have significantly accelerated the global spread of Chinese literary works. In the first half of 2025, revenue from AI-translated titles on our international reading platform, WebNovel, increased by 38% year-over-year, accounting for over 35% of total novel revenue on WebNovel. As of June 30, 2025, WebNovel offered overseas users over 10,000 Chinese translated works and approximately 770,000 locally created originals. The number of AI-translated titles reached 7,200, representing 70% of all Chinese translations.

We are also actively exploring AI applications across multiple content formats including animation, comics, video, audiobooks, radio dramas, and digital avatars, with the aim to unlock the vast potential of transforming mid- and long-tail text IPs into more multimedia formats.

About China Literature Limited

China Literature is dedicated to building a deep and immersive intellectual property (“IP”) universe for the Mandarin-speaking world. It incubates original IPs from its online literature platform, which are subsequently adapted to a range of digital entertainment mediums, including comics, animation, film, TV series, web series and games. The virtual world created by these digital offerings becomes an inseparable part of a user’s daily life. China Literature creates and promotes IPs mainly through Qidian Reading and QQ Reading, its leading online literature platforms, as well as New Classics Media, a renowned film and TV drama series production house in China. China Literature collaborates with Tencent, its shareholder and strategic partner, as well as other third-party partners to distribute and develop IP content and to enhance the value of its IP. Many of the Company’s online literature works have been successfully adapted into animation, TV series, web series, films and games, including Joy of Life, Candle in the Tomb, Soul Land, The King’s Avatar and My Heroic Husband. China Literature’s rich and extensive content library as well as its unparalleled capability and resources to adapt IP into various entertainment formats is a significant competitive advantage that lies at the core of its business model. For more information, please visit http://ir.yuewen.com/.

Non-IFRS Financial Measures

To supplement the consolidated financial statements of the Company prepared in accordance with IFRS, certain non-IFRS financial measures, namely non-IFRS operating profit, non-IFRS operating margin, non-IFRS profit for the period, non-IFRS net margin, non-IFRS profit attributable to equity holders of the Company, non-IFRS basic EPS and non-IFRS diluted EPS as additional financial measures, have been presented in this press release for the convenience of readers. These unaudited non-IFRS financial measures should be considered in addition to, and not as a substitute for, measures of the Company’s financial performance prepared in accordance with IFRS. These unaudited non-IFRS measures may be defined differently from similar terms used by other companies. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Company’s material associates based on available published financials of the relevant material associates, or estimates made by the Company’s management based on available information, certain expectations, assumptions and premises.

Our management believes that the presentation of these non-IFRS financial measures, when shown in conjunction with the corresponding IFRS measures, provides useful information to investors and management regarding the financial and business trends relating to the Company’s financial condition and results of operations. Our management also believes that the non-IFRS financial measures are useful in evaluating the Company’s operating performances. From time to time, there may be other items that the Company may include or exclude in reviewing its financial results.

Forward-Looking Statements

This press release contains forward-looking statements relating to the industry and business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.

GUANGZHOU, China, Aug. 12, 2025 /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 second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

• Total net revenues were RMB1,567.1 million (US$218.8 million) for the second quarter of 2025, compared with RMB1,541.6 million for the same period of 2024.
• Game-related services, advertising and other revenues were RMB413.9 million (US$57.8 million) for the second quarter of 2025, compared with RMB308.5 million for the same period of 2024.
• Net loss attributable to HUYA Inc. was RMB5.5 million (US$0.8 million) for the second quarter of 2025, compared with net income attributable to HUYA Inc. of RMB29.6 million for the same period of 2024.
• Non-GAAP net income attributable to HUYA Inc.^[1] was RMB47.5 million (US$6.6 million) for the second quarter of 2025, compared with RMB97.0 million for the same period of 2024.
• Average MAUs^[2] for the second quarter of 2025 was 161.6 million.

Mr. Junhong Huang, Acting Co-Chief Executive Officer and Senior Vice President of Huya, commented, “As we mark the two-year anniversary of Huya’s strategic transformation, we are pleased to report that we are back on a growth trajectory, with topline performance showing continued progress for the second consecutive quarter. Our efforts to expand our business from a pure-play live streaming platform to an all-rounded game-related entertainment and services provider have paid off. Our game-related services, advertising, and other revenues now stand at RMB414 million, representing 26% of total net revenues this quarter.

“By leveraging our cross-platform strategy, we have achieved an average of 162 million monthly active users across Huya’s platforms, and extended our reach even further through the distribution of our content and services on third-party channels. This figure underscores the ecosystem we have cultivated through this strategic transformation in China and overseas. Backed by our streamer network, e-sports infrastructure, AI capabilities, and operational strength, we are unlocking monetization in games—via in-game items and distribution—and growing our global user base as a key driver of future opportunities,” Mr. Huang concluded.

Mr. Raymond Peng Lei, Acting Co-Chief Executive Officer and Chief Financial Officer of Huya, added, “We are pleased to see live streaming revenues beginning to stabilize, with total net revenues returning to a growth trajectory for the second consecutive quarter. Our operating performance also continued to improve, driven by cost structure optimizations and enhanced operational efficiency. As of the end of June 2025, we had repurchased approximately US$75.4 million of Huya ADSs and distributed a special dividend totaling around US$340 million during the quarter. Looking ahead, we remain focused on advancing our strategic expansion initiatives, strengthening industry partnerships, and delivering sustainable long-term value to our shareholders.”

Second Quarter 2025 Financial Results

Total net revenues for the second quarter of 2025 were RMB1,567.1 million (US$218.8 million), compared with RMB1,541.6 million for the same period of 2024.

Live streaming revenues were RMB1,153.2 million (US$161.0 million) for the second quarter of 2025, compared with RMB1,233.1 million for the same period of 2024, primarily due to the continued impact of the macroeconomic and industry environment.

Game-related services, advertising and other revenues were RMB413.9 million (US$57.8 million) for the second quarter of 2025, compared with RMB308.5 million for the same period of 2024. The increase was primarily due to higher revenues from game-related services and advertising, which were mainly attributable to the Company’s deepened cooperation with Tencent and other game companies.

Cost of revenues increased by 2.1% to RMB1,354.8 million (US$189.1 million) for the second quarter of 2025 from RMB1,326.7 million for the same period of 2024, primarily due to increased revenue sharing fees and content costs, partially offset by decreased bandwidth and server custody fees. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 2.6% to RMB1,201.0 million (US$167.7 million) for the second quarter of 2025 from RMB1,170.2 million for the same period of 2024, primarily due to increased broadcaster-related costs, partially offset by lower costs related to licensed e-sports content.

Gross profit was RMB212.3 million (US$29.6 million) for the second quarter of 2025, compared with RMB214.9 million for the same period of 2024. Gross margin was 13.5% for the second quarter of 2025, compared with 13.9% for the same period of 2024, primarily attributable to increased revenue sharing fees and content costs as a percentage of total net revenues.

Research and development expenses decreased by 5.1% to RMB122.2 million (US$17.1 million) for the second quarter of 2025 from RMB128.7 million for the same period of 2024, primarily due to decreased personnel-related expenses and share-based compensation expenses.

Sales and marketing expenses decreased by 6.5% to RMB57.7 million (US$8.1 million) for the second quarter of 2025 from RMB61.7 million for the same period of 2024, primarily due to decreased channel promotion fees. 

General and administrative expenses remained flat year-over-year at RMB63.7 million (US$8.9 million) for the second quarter of 2025.

Other income was RMB7.6 million (US$1.1 million) for the second quarter of 2025, compared with RMB13.2 million for the same period of 2024, primarily attributable to a notable settlement income from disputes in the second quarter of 2024 and lower government subsidies.

Operating loss was RMB23.7 million (US$3.3 million) for the second quarter of 2025, compared with RMB26.0 million for the same period of 2024.

Non-GAAP operating income was RMB0.4 million (US$0.1 million) for the second quarter of 2025, compared with non-GAAP operating loss of RMB2.7 million for the same period of 2024.

Interest income was RMB59.1 million (US$8.2 million) for the second quarter of 2025, compared with RMB102.5 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.

Net loss attributable to HUYA Inc. was RMB5.5 million (US$0.8 million) for the second quarter of 2025, compared with net income attributable to HUYA Inc. of RMB29.6 million for the same period of 2024.

Non-GAAP net income attributable to HUYA Inc. was RMB47.5million (US$6.6 million) for the second quarter of 2025, compared with RMB97.0 million for the same period of 2024.

Basic and diluted net loss per American depositary share (“ADS”) were each RMB0.02 (US$0.00) for the second quarter of 2025. Basic and diluted net income per ADS were each RMB0.13 for the second quarter of 2024. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net income per ADS were each RMB0.21 (US$0.03) for the second quarter of 2025. Non-GAAP basic and diluted net income per ADS were RMB0.42 and RMB0.41, respectively, for the second quarter of 2024.

As of June 30, 2025, the Company had cash and cash equivalents, short-term deposits and long-term deposits of RMB3,766.4 million (US$525.8 million), compared with RMB6,254.6 million as of March 31, 2025.

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 22.8 million ADSs as of June 30, 2025, with a total aggregate consideration of US$75.4 million.

Earnings Webinar

The Company’s management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on August 12, 2025 (6:00 p.m. Beijing/Hong Kong time on August 12, 2025), 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:

Chinese Mainland^[3]: https://meeting.tencent.com/dw/bqbrXw5NuYDH
International:             https://voovmeeting.com/dw/bqbrXw5NuYDH

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.

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.

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 (loss), non-GAAP net income attributable to HUYA Inc., non-GAAP net income attributable to ordinary shareholders, non-GAAP basic and diluted net income per ordinary share, 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 (loss) is operating loss excluding share-based compensation expenses and amortization of intangible assets from business acquisitions. Non-GAAP net income 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 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 per ordinary share and per ADS is non-GAAP net 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 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) 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 (net of income taxes), which have been and will continue to be significant recurring expenses in its business, and (iii) impairment loss of investments, which 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 (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 RMB7.1636 to US$1.00, the noon buying rate in effect on June 30, 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: ir@huya.com 

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: huya@tpg-ir.com 

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: huya@tpg-ir.com