- 6th earnings webinar. I'm Hanyu Liu from the HUYA's Investor Relations. At this time, all participants are in listen only mode. Please be advised that today's webinar is being recorded. The company's financial and operational results were issued earlier today and are posted online. You can also view the earnings press release by visiting the IR website at ir.huya.com. A replay of the call will be available on the IR website soon. Participants of management on today's call will be Mr. Vincent Junhong Huang, our Acting CEO, Mr. Raymond Peng Lei, our CFO, and Ms. Margaret Shi, Head of Capital Markets. Management will begin with prepared remarks, and the call will conclude with a Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's latest annual reports on Form 20-F and other public filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that HUYA's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. HUYA's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. With that, I'm pleased to turn the call over to Mr. Huang. Please go ahead.
Okay. Hello, everyone, and thank you for joining our earnings call today. First, I would like to share our overall performance for the quarter. In the first quarter, total net revenues grew by 15% year-over-year to RMB 1.73 billion, primarily driven by continuous strong growth from game-related services, advertising and other businesses. Game-related services, advertising and other revenues reached RMB 627 million, up 69% year-over-year, and further increased to record 36% of total net revenues. Live streaming revenues were RMB 1.1 billion for the quarter, underpinned by our vibrant, diversified and high-quality live streaming content ecosystem. With the integration of AI, we are able to offer an enriched, more creative experiences to our users. Our ecosystem of game content live streamer is becoming increasingly influential across the broader social platforms.
While our own channels, including the HUYA Live app, continue to enjoy a stable user base. Our estimated reach across external platforms doubled from last year, exceeding 200 million users, including those on Douyin and WeChat platforms. According to our internal data, HUYA is the largest gaming MCN on WeChat channels and remain among the top 3 on Douyin. Across multiple leading game titles, nearly half of the core streamer are connected to HUYA. This broad content network enables us to provide games with strong content-driven marketing and user reach, which is what's driving our growth in our collaboration with game developers in game item sales and advertising, as well as game publishing. On the game publishing front, Goose Goose Duck Mobile continued to deliver impressive results.
Since its launch on January 7th, the game ranked number 1 on the iOS free games chart for most of the first quarter. We have been accelerating the pace of content updates since March, and on April 1, we launched season 2, introducing a new map, Ancient Desert, as well as new laws, including Daring Dudu and Raven. At the same time, we continue to work on our UGC mechanism, which we believe will be an important driver of player engagement, social interaction, and long-term content vitality for the game. Building on this foundation, we launched our first PGC gameplay mode, Goose Hunt, on April 29, which received positive feedback from players and further expanded the game's content ecosystem. As we continue to focus on building a healthy user ecosystem with robust and fun game content, we are also ramping up its monetization gradually.
In April, Goose Goose Duck Mobile reached the top 5 on the iOS top-grossing game chart, with new skin offered, validating its monetization potential. Looking ahead, we will further enrich the game's content and social environment with new features such as party mode and a home decoration system, and introduce more IP collaborations to meet players' growing demand for role-playing experiences. Meanwhile, we are working on the WeChat mini game version, which is currently scheduled for launch this summer. By integrating Goose Goose Duck Mobile more deeply with the WeChat user ecosystem, we hope to leverage WeChat social graph to further reactivate existing users and attract new ones. With the successful debut of Goose Goose Duck Mobile, we are gaining more recognition from game developers of our publishing capabilities through our content ecosystem.
We now have a handful of new titles in the pipeline to launch this year across various genres, including casual, SLG, and MMO. For in-game item sales, revenues continue to grow solidly year-over-year. On the domestic front, item for titles including Peacekeeper Elite, Honor of Kings, and CrossFire continue to contribute incremental growth. For example, our large-scale outdoor live-streaming event for Peacekeeper Elite Journey Season Two, not only effectively drove in-game item sales, but also generated strong social buzz for the game IP. On the overseas front, in-game item sales for PUBG Mobile, Genshin Impact, and Arena Breakout also delivered impressive performance. On the advertising side, leveraging our influence across streamer networks, tournament production capabilities, and UGC creation know-how, we provide fully integrated content marketing solution for game developers.
Some of our earlier advertising campaign have proven very effective, gaining further recognition from leading advertisers, including Tencent, NetEase, and Hypergryph. For example, for Hypergryph recognized Arknights: Endfield open beta campaign in the first quarter. We connected multiple top streamers to generate in-depth live-streaming content, generating more than 70 million views across the internet. This not only drove strong live-streaming traction on HUYA Live app, but also sparked extensive UGC content across all social platforms, broadening the game's user reach. In terms of our content offerings on our own platform, we continue to enhance our live-streaming tournament ecosystem, introducing 55 licensed tournaments, as well as more than 20 self-produced tournaments and variety shows. In late March, we created UZI Cup, named after esports legend UZI, attracting more than 200 League of Legends teams across China.
The event generated more than 100 million views across the internet and appeared on Weibo's trending list 22 times. Building on this momentum, we hosted additional self-produced events, including the Delta Force Qijia Cup and Dota 2 Immortal Cup Season 2. We have also become the official production partner for multiple top-tier game tournaments, such as VALORANT 2s 2026 National Tournament and 2026 Jiangsu Esports Super League. Hosting and producing these events creates organic synergies with our live-streaming content, in-game item sales, and other businesses. On the product side, we remain committed to upgrading our platform ecosystem through game services and enriching users' e-entertainment experience with a suite of game tools. In March, we officially launched the real-time navigation feature for our Delta Force map tool, as well as the League of Legends Hextech ARAM assistant tool, helping players make better in-game decisions.
Beyond this, we are actively developing assistant tools for more titles, including Golden Spatula and Goose Goose Duck Mobile, further establishing game tools as differentiated products gateway. We are also developing a physical AI companion around the appeal of Goose Goose Duck, creating richer and differentiated game play and companionship value. Overall, we deliver solid progress across multiple business lines in the first quarter. Game publishing, in-game item sales, advertising, marketing, and tournament operations all achieved meaningful breakthroughs. HUYA is accelerating its strategic evolution from a game live-streaming platform into a full service game services platform, with game-related revenues reaching a record high percentage of total revenues, and our revenue mix continue to improve.
We will continue to deepen our game content ecosystem and focus on high-value opportunities across the game industry value chain. While scaling the business, we will continue to enhance earnings quality and strive to deliver resilient and sustainable growth for our shareholders. With that, I will now turn the call over to our CFO, Raymond Lei. He will share more details on our results. Raymond, please go ahead.
Thank you, Vincent, and hello, everyone. I'll start with an overview of our financial performance. In the first quarter, we delivered a steady top-line growth with continued improvement in both our revenue mix and operating performance. Notably, the increased revenue contribution from business with higher gross margins led to both year-over-year and the sequential gross margin expansion to 14.6% this quarter. Furthermore, we achieved a non-GAAP net income of RMB 21 million for the quarter, despite lower interest income. Let's move on to more details of our Q1 financial results. Total net revenues were RMB 1.73 billion for Q1, up 15% from the same period last year. Live streaming revenues were RMB 1.1 billion for Q1, compared with RMB 1.14 billion from the same period last year, primarily reflecting the live streaming industry's current environment.
Game-related services, advertising and other revenues were RMB 627 million for Q1, up 69% from the same period last year. The increase was primarily driven by higher revenues from in-game item sales and advertising, mainly attributable to the company's deepened and broadened collaboration with game companies. Cost of revenues increased by 12% year-over-year to RMB 1.48 billion for Q1, primarily due to increased cost of in-game virtual items, as well as increased revenue sharing fees and content costs. Within this, revenue sharing fees and content costs rose by 7% year-over-year to RMB 1.23 billion, mainly reflecting growth in our top line. Gross profits was RMB 253 million for Q1, up 34% from the same period last year.
Gross margin was 14.6% for Q1, improving from 12.5% from the same period last year. Excluding share-based compensation expenses, non-GAAP gross profit was RMB 256 million, and the non-GAAP gross margin was 14.8% for Q1. Research and development expenses increased by 2% year-over-year to RMB 132 million for Q1. Sales and marketing expenses increased by 45% year-over-year to RMB 88 million for Q1, primarily due to marketing and the promotion efforts related to the launch of Goose Goose Duck Mobile. General and administrative expenses increased by 6% year-over-year to RMB 65 million for Q1, primarily due to increased share-based compensation expenses. Other income was RMB 3 million for Q1, compared with RMB 4 million for the same period last year, primarily due to lower government subsidies.
Operating loss narrowed to RMB 29 million for Q1, compared with a loss of RMB 60 million for the same period last year. Excluding share-based compensation expenses and amortization of intangible assets from business acquisition, non-GAAP operating loss narrowed to RMB 3 million for Q1, compared with a loss of RMB 36 million in the same period last year. Interest income was RMB 30 million for Q1, down from RMB 65 million for the same period last year, primarily due to a lower time deposit balance following the payment of special cash dividends. Net loss attributable to Huya Inc. was RMB 4 million for Q1, compared with a net income attributable to Huya Inc. of RMB 1 million for the same period last year. Excluding share-based compensation expenses and the amortization of intangible assets from business acquisitions, net of income tax, non-GAAP net income attributable to Huya Inc.
was CNY 21 million for Q1, compared with CNY 24 million for the same period last year. Diluted net loss per ADS was approximately CNY 0.02 for Q1. non-GAAP diluted net income per ADS was CNY 0.09 for Q1. As of March 31, 2026, the company had a cash and cash equivalent, short-term deposits, and a long-term deposit of CNY 3.46 billion, compared with CNY 3.82 billion as of December 31, 2025. With that, I'd like to open the call to your questions.
Thanks, Raymond, and hello, everyone.
If you are accessing the call from the Tencent Meeting or both meeting applications, please click the raise hand button at the bottom left. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Today's first question comes from Ritchie Sun from HSBC. Hello, Richie, your line is open. Please go ahead.
Vincent, Raymond, Margaret, 汉 宇, Louis, 晚 上 好 。 感 谢 你 们 给 我 提 问 的 机 会 。 首 先 恭 喜 ， 鹅 鸭 杀 的 这 个 非 常 好 的 一 个 表 现 。 那 我 想 问 一 下 ， 对 于 这 个 游 戏 最 新 的 这 个 运 营 和 商 业 化 的 进 展 有 什 么 样 的 更 新 吗 ？ 然 后 对 于 这 个 游 戏 今 年 的 运 营 策 略 会 是 ， 有 什 么 的 这 个 方 向 呢 ？Thank you management for taking my questions. Congrats on a solid start from Goose Goose Duck. I want to ask about the latest operating and strategy and also commercialization progress for this game. What is the this year's operating strategy going to be?
Thank you.
感谢 Ritchie 的提问，这个问题由我来回答。鹅鸭杀手游自从一月七号我们上线以来，整体表现是非常好的。在一季度的整个大部分的时间里面，我们可以看到在 iOS 的免费榜第一里面，我们保持了一个非常长的时间，这也验证了我们游戏本身的这种社交玩法的吸引力，同时也验证了虎牙在内容、生态、赋能和游戏发行这样的商业模式。一季度呢，我们主要还是聚焦在游戏的营销推广上面，同时我们也在持续地去打磨这个玩法，还有游戏内容的运营，也希望通过这种方式来承接超预期的整个用户的表现。目前来看，游戏的商业化我们还是处在一个非常早期的阶段，我们也在逐步推进。展望整个 2026 年，尤其在上半年，我们的重点仍然是在做大整个游戏用户的规模，以及提升整个游戏的活跃度上面。
Hi, Ritchie. This is Margaret. Let me just translate. Since its launch on January 7, Goose Goose Duck Mobile has continued to deliver impressive results ranking number 1 on the iOS free games chart for most of the quarter. This validates both the appeal of the game social gameplay and HUYA's content-driven game publishing model. In the first quarter, we have been mainly focused on marketing and promoting the game, as well as perfecting our gameplay and in-game operations to keep up with the better-than-expected user numbers. As of now, we're still at an early stage in terms of monetization, but we're ramping it up gradually. For 2026, especially the first half, our priority for this game remains to be growing the user base and user engagement.
那具体来看呢，我们后续会重点围绕三个方面来进行发力。那第一是我们会继续完善UGC的这个机制，比如说像猎鹅行动，就是基于这样的一个机制做的一次早期的一个尝试。那目前先由专业团队来设计和创作，那随着我们相关能力的逐步成熟，我们也会继续加入更多的这种类似的内容和轻量的小游戏，来进一步带动玩家的参与，还有社交的一个互动，并且来丰富游戏长期的整个的内容生态。那第二呢，我们也会加强社交和社区的这个属性，包括社交关系、家园的这个装扮、组队互动这些功能，让鹅鸭杀能够逐步沉淀成为更强的整个的社交的这个场景。那第三呢，小游戏版本，我前面也说了，我们也在积极的这个开发推行当中，并且将于我们这个暑假会进行上线。那由于这个鹅鸭杀本身也具有很强的这种party game的这个属性，我们也希望能够借助微信的生态，还有社交的这个链路来进一步的促活和拉新。
In particular, there are 3 things we will be focusing our efforts on. Number 1, we'll continue to build and strengthen our UGC mechanism. Goose Hunt is an early example of this work, this framework with its gameplay and content currently led by a PGC team. As we continue to enhance our UGC mechanism and related know-how, we will add more UGC gameplay and casual game modes to the game. We believe this is crucial for game sustainable user engagement and the longevity. Second, we will add more social and community features including inter-player connections, the home decoration system, and team up interactions so the game can evolve into a deeper social environment. Third, we are working on the WeChat mini game version, which is currently scheduled for launch this summer. Given the game's strong party game nature, we believe the WeChat ecosystem and social graph can help us further reactivate existing users and attract new ones.
Thank you. We will take our next question from Nelson Cheung from Citi. Hi, Nelson, please go ahead.
嘿， Vincent 总， Raymond 总， Margaret， 汉 宇， 晚 上 好。 我 的 问 题 是 关 于 我 们 公 司 目 前 的 一 个 AI 相 关 的 一 个 进 展， 不 知 道 能 否 请 管 理 层 分 享 一 下 虎 牙 最 新 的 一 些 AI 布 局 呢？ 我 们 如 何 把 这 些 AI 的 应 用， 应 用 到 公 司 以 及 一 些 核 心 的 业 务 中 呢？ Let me translate the questions. Thanks management for taking my questions. My question is related to your AI progress. Wondering if management can share your latest strategic planning on AI for the company, and how should we integrate your AI applications into the company core business?
Thank you.
感谢Nelson的提问。虎牙的整个AI布局，主要还是围绕着我们的具体的业务场景来进行展开。具体主要有四个方面，我们主要还是围绕着像AI加直播、AI加游戏工具、AI加IP陪伴，以及AI加游戏制作这几个方向来进行布局。在AI加直播方面，我们也在探索两条路，一个是AI的二创的内容和AI的原生的直播。目前这些产品，还处在一个相对比较早期的迭代和用户测试的阶段。我们也认为短期内，AI可能无法替代真人的主播，特别是一些头部的主播，他们的情绪价值和即时互动相对是比较难复制的。但我们看中的一个机会点是，AI能够帮助我们在中腰部和长尾部的直播内容、二十四小时的陪伴以及一些互动的玩法上面，发掘出更多的机会点出来。
Our AI initiatives are focused on 4 areas centered around our business. Number 1, that's the live streaming. Number 2, game tools. Number 3, IP based companionship. Number 4, game production. For AI powered live streaming, we are exploring 2 main paths. Firstly, that's AI powered content creation and secondly, AI native live streaming. These products are still in early stages product iteration and user testing. We do not expect AI to replace real life streamers anytime soon, especially top ones whose emotional connection with users and real time interactivity remain difficult to replicate. Instead, we think the real value of AI in live streaming is to help us explore more opportunities in mid tier and long tail live streaming content, 24-hour companionship, and certain interactive formats.
在AI加游戏工具方面，我们也可以看到，三月份我们也正式推出了Delta Force的地图工具的实时的地图导航功能，还有英雄联盟Hextech ARAM的辅助工具。那这类工具的核心不是简单地给玩家一个固定的攻略，而是将AI的能力和虎牙长期积累的游戏理解结合起来，给玩家提供一个更加实时的、更加贴合场景的决策支持。比如说Delta Force的地图工具能够帮助玩家快速地去摸清资源点在哪里，路线怎么走，以及高风险的区域，来降低用户的上手门槛。Hextech ARAM的辅助工具能够根据每一局的对局提供英雄的推荐、出装的建议，还有打法的思路。那由于每一场的对局中都需要重新地来决策，所以这类的对局型的辅助工具的持续使用价值会更加强。那接下来我们也会把游戏工具拓展到更多的游戏品类里面，比如说像Golden Spatula、Goose Goose Duck Mobile，以及棋牌，还有策略、自走棋这些品类。
For AI-powered game tools, we are also progressing really well. In March, we launched the real-time navigation feature for our Delta Force map tool as well as the Hextech ARAM assistant tool for League of Legends. These tools are not just static guides for players. Instead, they combine AI capabilities with HUYA's deep understanding of games to provide more real-time and context-aware decision support. For example, our Delta Force map tool helps players quickly identify resource points, routes and high-risk areas, lowering their learning curve. The Hextech ARAM tool can provide champion recommendations, item build suggestions, and gameplay ideas for each match. Since every match requires players to make new decisions, this kind of match-based assistant tool has very strong repeat user value. Going forward, we'll expand game tools to more titles and categories, including Golden Spatula, Goose Goose Duck Mobile, card and board games, strategy games and auto chess games.
在AI加IP陪伴方面，我们也在探索IP化的智能硬件，比如说内置多模态AI的实体的AI陪伴产品。从鹅鸭杀的用户反馈来看，我们认为这类产品除了情绪陪伴之外，还可以跟游戏本身形成更深度的联动，比如说支持游戏的互动、复盘，还有这些功能，还有进一步地去延伸IP和玩家之间的连接。
AI enabled companionship. We're exploring IP based smart hardware, including physical AI companion products embedded with the multimodal AI capabilities. Based on our user feedback from Goose Goose Duck, we believe these products can go beyond emotional companionship and create deeper integration with the game itself, including in-game interactions and post-game reviews. This can further extend the connection between the IP and the players.
在AI辅助游戏制作方面，我们也在探索AI如何帮助我们更高效地去生成和测试这些休闲类的游戏内容。我们认为AI在短期内可能不会去取代大型的Triple-A游戏的制作，但是在休闲类、网页类，还有轻量的互动小游戏方面，AI会有很大的机会能够帮助我们去提高我们的研发和分发的效率。
For AI assisted game production, we are also exploring how AI can help us generate and test casual game content more efficiently. We do not expect it to replace large scale Triple-A type of games in near future, we do see a lot of opportunities improving R&D efficiencies in casual games, web-based games, or small interactive games.
Thank you. Our next question comes from Weimeng from CICC. Hi Weimeng, please go ahead.
感谢管理层接受我提问。我这边想问一下公司的这个游戏发行业务后面的产品储备的情况，然后能不能跟大家分享，就是接下来还会有哪些游戏可以期待一下的，然后大概的这个发布的节奏，以及说可能是否可以就是前置地去预期一下它的这个大概的贡献量级。So let me translate myself.
Just want to ask about the game publishing pipelines. Could management maybe share some colors on those pipelines and what's the rough timeline for those releases and what kind of revenue contribution should we expect from them? Thank you.
感谢Wei的提问。目前我们在游戏发行的产品储备来看，我们还是非常丰富的，我们今年也会陆续地上线多款新游戏，包括像腾讯、还有金山这些头部的游戏厂商的合作。从产品的类型来看，也会覆盖像休闲类的、策略类的，还有像MMO这样的多个品类。接下来，我们也会结合产品的测试、版号的进展，还有市场的窗口来有节奏地推进上线。
Currently, we have a robust publishing pipeline and we expect to launch multiple new games this year. These include collaborations with leading game companies such as Tencent and Kingsoft. The pipeline covers multiple genres including casual, strategy, SLG, MMO and others. We will pace the launches based on the product testing, license approval progress and the right market windows.
那接下来呢，我们发行储备中的一款重点的产品就是我们代理的一款3D的这个叠销类的这个玩法的休闲游戏，那我们也计划在暑期档能够上线。我们拥有这款游戏在中国大陆和港澳台地区的这个独家的发行权。那这款产品呢，在海外市场已经跑通了，用户吸引力和商业化的这个能力方面都得到了一个比较充分的一个验证。那我们也根据公开的第三方数据的这个估算，它的累计的这个下载量已经是千万级别了，在海外3D叠销品类的这个收入榜上面也一直保持在前列。
The next in our pipeline is a casual 3D puzzle matching game that we licensed, which is scheduled for launch for the summer holidays. We have exclusive publishing rights for Mainland China, Hong Kong and Macao. The game is already proven in overseas markets in terms of user appeal and monetization. Based on third-party estimates, its cumulative downloads exceed 10 million, and the title has remained among the top grossing titles in the overseas 3D puzzle matching category.
在发行的整个打法上面，我们也会充分地发挥虎牙在主播的这个网络、全域的这个分发，还有玩家社区方面的这个影响力。正如我们前面我们发言里面提到的，目前虎牙我们在站外可以触达的用户规模整整超过了两个亿，也覆盖了像抖音、视频号等多个的平台。那基于这样的用户的这个触达能力，我们也有信心可以更加高效地去触达到核心的这个玩家，来打造更有吸引力的这个内容，并且能够进一步地去延长整个游戏的这个生命周期。
In terms of publishing strategy, we're leveraging our influence in streaming networks, cross-platform distribution and player communities. As mentioned in our prepared remarks, our estimated reach across external platforms now exceed 200 million users, including those on Douyin and WeChat platforms. This extensive user reach allows us to target core players more efficiently, create more appealing content, and enhance game longevity.
Thank you. We will take next question from Maggie Ye from CLSA. Hi Maggie, please go ahead.
Hey, thanks management for taking my question. [Foreign language] Could management share your perspective on the recent trends and future outlook for the live streaming business? In addition to that, what are the core strategic levers and key drivers for the company to maintain stability in this segment moving forwards? Thank you.
感谢Maggie的提问。直播客观讲仍然是我们非常重要的一个基本盘。第一季度直播的收入是十一个亿。不过我们也注意到当前整个市场的环境还是会给直播的业务带来一定的压力，所以我们也会更加看重我们在内容投入方面的ROI，包括主播的成本，还有版权采买的成本。我们认为虎牙区别于其他直播平台一个很关键的优势，就是我们能够持续地产出有影响力的游戏内容，并且通过这些内容能够更好地去带动游戏的发行。那这背后也是依托我们跟头部主播的这种深度合作的关系，赛事的制作经验，以及跨平台的游戏分发的能力。在2026年第一季度，我们也为用户提供了超过五十五个版权的赛事，还有超过二十个的自制赛事及综艺。其中虎牙的自制的Uzi Cup杯赛在全平台都获得了超过一亿次的观看，这就能体现主播IP加自制赛事这种模式的价值。这个季度我们还携手一位头部的娱乐主播，在洛阳的多个知名景区开展这种联动直播，也取得了非常良好的线上互动效果，最高同时在线观众数超过了十万人。
Yeah. Live streaming remains a core part of HUYA's business. In the first quarter, live streaming revenue was CNY 1.1 billion, but we do feel the business may still be under some pressure due to the overall market environment. Therefore, we'll be more focused on improving ROI, cross content cost, which includes streamer cost and licensing cost. We believe one of HUYA's key differentiator versus any other live streaming platform is our ability to consistently create influential gaming content and leverage that content to better support game publishing and distribution. This capability is backed by our close relationships with top streamers, our know-how in tournament production and our cross-platform game distribution capabilities. In the first quarter of 2026, we offered around 55 licensed tournaments and more than 20 self-produced tournaments and variety shows. Among them, our self-producer Yu Cai Cup generated over 100 million views across the internet, demonstrating the value of our streamer IP plus self-produced tournament model. Also, during the quarter, we partnered with the top entertainment live streamer for a collaboration at a major tourist attractions in Luoyang, generating strong online engagement and attracting over 100,000 peak concurrent viewers.
在重点的游戏品类上面，我们也会继续地围绕平台优势的整个品类来打造我们整个自制的内容。比如说像Dota 2不朽杯第二赛季，就是我们国内当前最大规模最大的第三方的这个Dota 2的赛事之一。在穿越火线方面，我们近期也和CF的官方围绕着功夫IP这个联动版本推出了这个火线功夫虎牙决斗夜这样的一个PGC的直播营销节目，来进一步提升了整个新版本内容的热度，还有用户的互动。在和平精英方面，我们也在一季度推出了精英环游记S2第二季，这档直播的综艺创新性地结合了游戏的内容、主播的影响力，还有户外的场景，给用户带来了比较好的这种参与度，还有内容的热度。我们认为，这些提升用户互动、帮助游戏内容触达到更广泛的受众的是一种非常有效的方式。
The key game titles will continue to build self-produced content around them. For example, Dota 2 Immortal Cup Season 2 is currently one of the largest third-party Dota 2 tournaments in China. For CrossFire, we recently worked with CF team on live streaming campaigns around the Kung Fu IP collaboration, including Crossfire Kung Fu HUYA Duel Night. These campaigns helped generate significant social buzz for the new update and further improve user engagement. For Peacekeeper Elite, we launched Elite Journey Season Two in the first quarter, which is a live streaming show that generated solid user participation that creatively combined game content, streamer influence, and outdoor scenarios. We think it's a great way to improve user engagement and help game content reach a broader audience.
虎牙也提供了丰富多样、用户参与度比较高的体育赛事内容。我们已经拿下了2026年的世界羽联赛事，还有2026年世界斯诺克巡回赛的全部版权，也为观众提供了全程蓝光高清直播。在刚刚结束的2026年的斯诺克世锦赛方面，虎牙平台总观看人次超过了1.5亿，尤其是丁俊晖对阵赵心童的中国德比，单个直播间的最高接近两千万人的观看。
HUYA also offers a broad range of highly engaging sports content. We have already secured full rights to 2026 Badminton World Federation events and 2026 World Snooker Tour, and will provide viewers with high definition live broadcasts of these events. The recently concluded 2026 World Snooker Championship generated more than 150 million total views on HUYA. In particular, the match between the two Chinese players, Ding Junhui and Zhao Xintong, reached a peak of nearly 20 million viewers in a single live streaming room.
Thank you. We will take next question from Yi Wen Zhang from China Renaissance. Hi Yi Wen, please go ahead.
[Foreign language] Thanks company for taking my question. My question is on the advertising in-game item sales. Can you share some operation color on that? Thank you.
感谢义文的这个提问。第一季度，虎牙公司游戏相关的服务、广告还有其他收入达到了6.27亿，同比增长了69%，占我们整个收入总收入比的比例也在进一步提升到了36%。增长主要来自于道具销售，还有广告业务的持续拉动，同时有一部分来自游戏发行这些新业务的贡献，这也反映出我们整个虎牙的收入结构在持续优化，非直播的游戏服务已经成为我们公司增长的一个重要驱动力。
In the first quarter, game-related services, advertising, and other revenues reached RMB 226 million, up 69% year-over-year, and increased to 36% of the total net revenue. The growth was mainly driven by the continued expansion in in-game item sales, advertising, while game publishing also contributed incremental growth. This shows that HUYA's revenue mix is continuing to improve, and non-live streaming game services have become an important growth driver.
游戏道具销售方面，收入同比继续保持一个比较快的增长。在国内方面，增长主要是由像和平精英、王者荣耀这些头部游戏来带动的。那拆开来看，像王者荣耀主要是靠独家皮肤的销售，还有春节的这个皮肤活动。和平精英主要是我们结合我们自己的内容生态，对道具的货品内容质量做了一个持续的优化，把销售转化进一步地提了上来。那同时，在穿越火线这些游戏，我们也从重要的这个售卖节点和版权赛事资源方面获得了带动。在海外方面，像PUBG Mobile、原神、暗区突围这些游戏也在继续地贡献我们的增量。我们也持续地去拓展海外道具的这个供给，把本地化的这个服务能力做得更加扎实。那未来，我们还会继续推进更多定制化的这种礼包，还有权益的合作，让更多的这个交易沉淀到虎牙自己的平台生态里面来。
For in-game item sales, revenue continued to grow rapidly year-over-year. In the domestic market, growth was mainly driven by leading titles such as Peacekeeper Elite and Honor of Kings. More specifically, Honor of Kings benefited from the exclusive skin sales and the Chinese New Year skin events, while Peacekeeper Elite saw better sales conversion as we continue to optimize item offering and content quality through our content ecosystem. CrossFire and other titles also benefited from key sales windows and tournament-related resources. Overseas, titles such as PUBG Mobile, Genshin Impact, and Arena Breakout continue to contribute incremental growth. We will continue to expand our overseas in-game items supply and strengthen our localized service capabilities. Looking ahead, we will continue to develop more customized bundles and rights-based partnerships while bringing more transactions into HUYA's own platform ecosystem.
广告业务方面，本季度我们一直在加强内容驱动的游戏整合营销服务，主要靠的就是主播的矩阵联动、赛事的植入、UGC内容共创，还有这些核心的能力，给游戏厂商提供全链路的营销方案。凭借这个较好的ROI表现，虎牙也在持续地获得像腾讯、网易、鹰角这些头部广告主的认可。
On advertising, HUYA continues to strengthen content-driven integrated game marketing solutions. By combining stream, streamer network, tournament integrations, UGC co-creation, and other core capabilities, we provide game developers with end-to-end marketing solutions. Our ROI performance on these advertising campaigns continue to earn recognition from leading advertisers such as Tencent, NetEase, and Hypergryph.
Thank you. We will take our last question today from Rebecca Xu from Morgan Stanley. Rebecca, please go ahead.
Hi. Thank you for taking my question. I'm honored to be the last to raise question. My question is about margin and net profit trend. Can management share some color on the margin and net profit trend, maybe in the full year basis? Yeah, I will translate for myself. [Foreign language]
这个问题我来答吧。谢谢Rebecca。利润率方面，第一季度我们整体的利润率延续了改善的趋势，non-GAAP经营利润率已经接近盈亏平衡。改善主要来自几个方面：收入结构在持续优化，广告、游戏道具、游戏发行这些毛利率相对更高的业务贡献在提升。同时公司也在持续加强成本费用管理和运营效率。往后看，随着这些高毛利业务继续放量，经营杠杆逐步体现，我们预计全年整体毛利率和经营利润率还有进一步改善的空间。同时，考虑到鹅鸭杀等游戏相关投入的节奏影响，我们预计毛利率和经营利润率改善趋势有望在下半年进一步体现。
Our margins will continue to see improvement in the first quarter, with non-GAAP operating margin approaching break even. This improvement was mainly driven by continued revenue mix optimization with higher contributions from relatively higher margin business such as advertising, game items and game publishing. We also continue to strengthen cost and expense management and improve operating efficiency. Looking ahead, as these higher margin businesses continue to scale and operating leverage gradually comes through, we expect further room for improvement in our overall gross margin operating margin for the full year. In addition, given the pace of investment related to Goose Goose Duck and other games, we expect improvement in both margins to become more visible in the second half of the year.
Okay, thank you once again for joining us today. If you have further questions, please feel free to contact HUYA's Investor Relations through the contact information provided on our website of PSNT Financial Communications. This concludes today's call, and we look forward to speaking to you again next quarter. Thank you.