HUYA Inc. (HUYA) shares lost 2.21% in pre-market on Tuesday, August 17, 2021, as of this writing and were trading at $9.29. in Yesterday‘s after-hours session, HUYA’s stock lost 5.94% to close Tuesday’s session at $9.50. HUYA shares have fallen 60.61% over the last 12 months, and they have moved down 15.85% in the past week. Over the past three months, the stock has lost 38.59%, while over the past six months, it has declined 71.84%.
Let’s see is there any reason behind its early morning negativity?
HUYA latest financial results announcement
On August 17, 2021, HUYA Inc announced its unaudited financial results for the second quarter ended June 30, 2021.
Q2 2021 financial highlights
- HUYA reported total revenue of RMB2,962.4 million(US$458.8 million) in Q2 2021 compared to RMB2,697.2 million in Q2 2020.
- Gross profit was 3 million(US$90.0 million) for the second quarter of 2021 compared to RMB575.0 million in Q2 2020.
- The cost of revenue was RMB2,381.1 million(US$368.8 million) in Q2 2021 compared to RMB2,122.2 million in Q2 2020.
- Total operating expenses were RMB 447.07 million (US$69.2 million) in Q2 2021 compared to RMB 434.4 million in Q2 2020.
- It reported a net income of 3 million(US$28.8 million) inQ2 2021 compared to RMB206.8 million in Q2 2020.
- The company had cash and cash equivalents, short-term deposits, and short-term investments of RMB10,738.2 million(US$1,663.1 million) on June 30, 2021, compared with RMB10,651.1 million as of March 31, 2021.
HUYA terminated merger agreement with DouYu
On July 12, 2021, HUYA Inc. announced that according to the announcement posted by the State Administration for Market Regulation of the People’s Republic of China on July 10, 2021, the SAMR decided to prohibit the proposed merger between Huya and DouYu International Holdings Limited following SAMR’s antitrust review. The company fully respects and will abide by the SAMR Decision, and will comply with all regulatory requirements, and conduct its businesses following the applicable laws and regulations.
HUYA won an arbitration award
On July 5, 2021, Nimo TV, which is HUYA international live streaming platform, initiated an emergency arbitrator procedure at the Singapore International Arbitration Centre (SIAC) against a Moroccan streamer for breaching an Exclusive Cooperation Agreement with Nimo TV. As a result, an interim injunction has been issued to the streamer by the SIAC. The company has demonstrated that the Chinese Internet company is determined and capable of defending its interests when going global.
Conclusion
HUYA stock is declining in the pre-market after the recent financial results, which were lower than the expectations. Let’s see how it performs in the remaining trading sessions of today?
