HUYA Inc. Boosts Confidence with Share Repurchase Program

HUYA Inc., a leading game live streaming platform in China, has taken a significant step to bolster investor confidence and enhance shareholder value. On March 20, 2025, the company repurchased approximately US$1.1 million worth of its American depositary shares (ADSs), nearly reaching the daily repurchase limit under Rule 10b-18. This move comes as part of its ongoing share repurchase program, which authorizes the repurchase of up to US$100 million of its ADSs or ordinary shares until March 31, 2026.

The recent share repurchase activity is a clear indication of HUYA Inc.'s confidence in its current market valuation and future prospects. Raymond Peng Lei, Acting Co-Chief Executive Officer and Chief Financial Officer of Huya, stated, "This recent share repurchase demonstrates our commitment to enhancing shareholder value and reflects our belief that the Company's current market valuation does not accurately represent its underlying fundamentals and future prospects." This confidence is further supported by the company's strategic and operational plans, as well as its efforts to expand its presence in the game industry, both domestically and internationally.



The implications for potential investors are significant. The share repurchase program signals that the company is committed to returning value to shareholders and believes in the long-term growth potential of its business. This can be seen as a positive indicator for investors, as it suggests that the company is optimistic about its future performance and is taking proactive steps to enhance shareholder value. Additionally, the company's strategic and operational plans, as well as its efforts to expand its presence in the game industry, both domestically and internationally, further support this optimism.

For example, Huya's game-related services, advertising, and other revenues increased by 152.7% year over year and 26.6% quarter over quarter to RMB308.5 million in the second quarter of 2024, accounting for 20.0% of total net revenues. This growth in higher-margin game-related services business and the company's continued operational efficiency improvements further enhance its overall operating results and financial fundamentals.

The strategic benefits of HUYA Inc.'s ongoing share repurchase program are manifold. Firstly, the program demonstrates the company's confidence in its future prospects and underlying fundamentals. This confidence can boost investor sentiment and potentially attract more investors, leading to an increase in the company's stock price.

Secondly, the share repurchase program helps to reduce the number of outstanding shares, which can increase earnings per share (EPS). By repurchasing shares, Huya can lower its share count, making each remaining share more valuable. For instance, on March 20, 2025, Huya repurchased approximately US$1.1 million worth of its ADSs, nearly reaching the daily repurchase limit under Rule 10b-18. This action not only reduces the number of outstanding shares but also signals to the market that the company believes its stock is undervalued, potentially driving up the stock price.

Thirdly, the share repurchase program can enhance shareholder returns. As mentioned in the materials, Huya has repurchased 17.1 million Huya shares with a total aggregate consideration of US$56.7 million as of the end of June 2024. Additionally, the company declared a special cash dividend totaling approximately US$250 million for its shareholders. These actions indicate that Huya is committed to returning value to its shareholders, which can lead to increased shareholder satisfaction and loyalty.

Lastly, the share repurchase program can optimize the company's capital structure. By repurchasing shares, Huya can reduce its equity base, which can lower its cost of capital and improve its financial flexibility. This can enable the company to pursue growth opportunities more effectively and enhance its long-term financial performance.

In summary, HUYA Inc.'s ongoing share repurchase program provides strategic benefits such as boosting investor confidence, increasing EPS, enhancing shareholder returns, and optimizing capital structure. These benefits can positively influence the company's long-term financial performance and shareholder value. As HUYA Inc. continues to evaluate market conditions and repurchase shares from time to time under its share repurchase program, investors can expect to see continued efforts to enhance shareholder value and drive long-term growth.