The most prominent Chinese companies in the game streaming and esports industry are Huya (HUYA:NYSE) and DouYu (DOYU:NASDAQ), which together control 80% of the country's market.
China's game live streaming platform Huya (HUYA:NASDAQ) reported that its total net revenues were CNY 2275.2 million (USD 339.7 million), decreasing by 23.2% compared with the same period of last year.
According to its newly released unaudited financial results for the second quarter ended June 30, 2022, the net loss attributable to the company was CNY 19.4 million. However, Huya documented a net income of CNY 186.3 million for the same period of 2021.
Mr. Rongjie Dong, Chief Executive Officer of Huya, commented that "While the turbulence in the macro and regulatory environment has decelerated our monetization in the short term, we remain confident in the broad-based strength of our solid business foundation that underpins our ability to satisfy our users' core needs."
The increase in Huya Live's average mobile MAUs is a good showcase. For the second quarter of 2022, the figure increased by 7.7% to 83.6 million for the same period of 2021. And the total number of paying users stayed unchanged at the number of 5.6 million.
The gross profit was CNY 219.1 million in Q2, compared with CNY 581.3 million for the same period of 2021, primarily due to lower revenues.
Notably, Huya's gross margin experienced a huge slump over the reporting period, from 19.6% in Q2 2021 to 9.6% in Q2 this year.
Operating loss also turned negative to CNY81.1 million for the second quarter of 2022, compared with an operating income of CNY 181.9 million for the same period of 2021.
Founded in Guangzhou in 2014, Huya's mission is to operate gaming and eSports live streaming platforms to connect broadcasters and their audience. The content covers a wide variety of media from talent shows, anime, outdoor activities, live chatting, online movies and many others.
Its domestic competitors include Douyu Inc (DOYU: NASDAQ), Huya Inc. (HUYA: NYSE) and Kuaishou Technology (1024: HK).