Whether it is chat, short video or live broadcast, social applications, as emerging media, have become an extension of people's senses and an indispensable window for people to understand the world.

The first time you use your mobile phone screen must be the social application. Whether it is chat, short video or live broadcast, social applications, as emerging media, have become an extension of people's senses and an indispensable window for people to understand the world. Against the backdrop of the global pandemic, social applications maintain people's emotional bonds, allowing individuals to no longer feel depressed and lonely during this difficult period.

A few days ago, APP ANNIE, which focuses on data analysis in the era of mobile applications and digital content, released a report showing that in the first half of 2021, the global social application usage time reached 740 billion hours, equivalent to 44% of the global mobile device usage time. In the past three years, the usage time of social applications has maintained a steady growth, an increase of 30% over the first half of 2018. APP ANNIE's latest list of revenue rankings for non-game manufacturers in October 2021, Huya Group firmly ranked first and ranked second. The growth space of

social applications is gradually opening up. As an industry-leading social media platform company, Huya Group is benefiting from the strong growth momentum of social applications. In the third quarter of this year, Huya Group achieved revenue of nearly US$651 million, a year-on-year increase of 21.7%. After divesting YY Live business, the group achieved a net profit of US$35.14 million for the first time (under non- US General Accounting Standards ). On the day of the performance release, Huya announced that based on its $200 million share repurchase plan announced in September, an additional $1 billion in share repurchase plan will be valid until November 22. This is the largest repurchase program in the Group in history to demonstrate the company's confidence in its business development prospects and long-term strategy, as well as its feedback on its long-term support for shareholders.

"Globalization" and "localization" are two keywords of Huya Group's outstanding results in the third quarter of this year. Global expansion is horizontal expansion, and local deep cultivation is vertical growth. The two are inseparable. Local fine operations, continuous iteration of functions, and creating active and friendly content and social ecosystems, which makes Huya Group take every step of globalization very steadily and solidly, and also builds Huya Group's moat for successfully going overseas as a global social media platform.

Huaju Group Headquarters

Globalization means localization. Tailoring an exclusive content ecosystem

Chinese brands go overseas, the biggest problem often encounters is that they are not suitable for the local environment. The market maturity is different, the user group is different, and the consumption habits are far-reachingly affected by local culture... Imagination that the successful Chinese business model of practice mechanized by mechanization and "support" overseas users will only return in vain, which makes it particularly important to deepen the culture and habits of users in various countries.

As a social media representative who has gone out of China, Huya Group is well versed in the way of going overseas - globalization is localization. If you cannot fully understand the global markets and build a social media platform that is exclusive to local users according to local conditions, how can you take root in the local area? Without the stable user base in the markets in various places, can we gather sand to form a tower and move towards globalization?

Many North American stars have opened personal channels in Bigo Live

For a long time, Huya Group has continuously formed a local operation team to conduct refined operations on the platform based on different cultural traditions in various countries and regions around the world. The social + pan-entertainment live broadcast platform Bigo Live has launched channel functions in North America. The channel theme covers the most popular topics and phenomena in North America, attracting many celebrities to open personal channels. Kreesha Turner Financial Classroom, Sam Asghari Fitness Channel, Farrah Abraham Mental Health Channel, etc. have settled in, providing celebrities with a platform to demonstrate their creativity and talents. At the same time, it also vigorously promotes the diversification of Bigo Live content and the accumulation of high-quality content.

Bigo Live jointly held a game content creator recruitment and incentive activity with "Saint Seiya Awakening" in France. It is worth mentioning that Huya Group also strengthened the introduction of games in the third quarter, allowing the platform to enrich the social and content ecology and become the soil for game live broadcasts, greatly enhancing the length of time users use products and the profitability of products.In the third quarter, Bigo Live and Saint Seiya: Awakening jointly held a series of content creators incentive activities in France, hosted and broadcast the Free Fire E-sports League under Garena, enriching the content ecosystem of UGCh on the terminal game. Through cross-border cooperation with well-known overseas games, the richness of the content of Bigo Live in-end games UGC has been greatly improved, enriching the connotation of the "Friends" in the BIGO game world.

Bigo Market Place (e-commerce sales) was launched in Southeast Asia for the first time, providing users with diversified interactive experiences

Compared with mature markets such as North America and China, emerging markets such as Southeast Asia are in full swing in the live e-commerce field. Huya Group has gained insight into this in depth and opened up a blue ocean in a timely manner. In the third quarter, Bigo Live introduced live streaming content in Southeast Asia for the first time, launching Bigo Market Place in Indonesia , Malaysia and Thailand, and a "Shop" (shopping cart) function in the small-scale test end, allowing some users to directly access the registered merchant's external website through links. In the future, Bigo Market Place will also provide users with more diverse content and interactive experiences.

Huya Group has explored far more than this local high-quality content. The popular variety show "Win the Bonus of Fighting Songs" across the country has launched the "BIGO Country Singer Competition", supporting and helping grassroots singers DIVNA and Veronika on the Likee platform to join top fashion media such as ELLE and InStyle, launching Indonesia's first girl group DREAMGIRLS, which was born on a social media platform, and plans to open a Likee representative office in Russia... This is a remarkable achievement of Huya Group's continuous accumulation of high-quality content through cross-border cooperation and rich localized operation activities this year. It can be foreseen that through the benchmark demonstration role of these cases, Huya Group will drive the growth of a series of local high-quality content, the long-tail effect of will gradually emerge, and the influence of the pan-entertainment ecosystem will continue to expand.

is also based on local deep cultivation that Huya Group has achieved gratifying results in global expansion. Bigo Live's localized business strategy has gradually promoted the establishment of users' payment habits. In the third quarter, paid users increased by 16.1% year-on-year and revenue increased by 8.6% year-on-year. Bigo Live has achieved good results in multiple key markets. Among them, Europe performed well, with revenue increasing by 50.8% year-on-year and paid users increasing by 26.7% year-on-year. Southeast Asia and other regions saw strong growth, with revenue increasing by 29.4% year-on-year and paid users increasing by 31.7% year-on-year.

benefited from the further expansion of the profit level of the BIGO sector and the synergy effect of multiple product lines to improve operational efficiency. The group achieved a net profit of US$35.14 million (under non-US General Accounting Standards), which was significantly exceeded market expectations (previously the market expectations were US$9.25 million). Among them, the net profit margin of the BIGO sector (not under US GAAP) increased from 3.3% in the last quarter to 8.7%, achieving a net profit of US$49.63 million, and increased by 155.3% month-on-month.

Creators first Create an active and friendly creative community

Social media has developed to this day, and users are no longer just passive users and commentators of content, and the creator economy is beginning to sprout. The designers of social media have gradually understood that only by creating a comfortable, friendly and safe community atmosphere through all-round and multi-form user interaction and motivation, and encouraging users to reproduction of content, can they feed back to the platform and form a virtuous cycle. This is the source of motivation for the continuous operation of a social platform, and it is also the most basic and core internal requirement for the construction of the content ecosystem.

APP ANNIE's report pointed out that in the past, most of the revenue from social media was one-time purchases by users on the end, such as emoticons. Now, in-end purchases that drive the growth of user spending in the social market are usually "reward" virtual products for content creators during live broadcasts. A typical example is that American anchor Beau earned his first $10,000 on Bigo Live and thus opened an agency to help other anchors play their talents and become full-time anchors. Now, Beau is expected to earn up to $24,000 per month with Bigo Live. Users reward for encouraging excellent content, and creators are rewarded for their talents and are motivated to continue to create better content, which also forms a virtuous cycle of the creator economy.

. In today's increasingly competitive content industry, the scarcity and importance of high-quality content have made major platforms join the battle for talents. Domestic Weibo , Toutiao, B site and other platforms have all proposed their own incentive plans for original authors. And for overseas markets, it is no exception.

, Huya Group, which focuses on the global market, has long been open to excellent content creators and has given generous policy encouragement and resource tilt. In the third quarter, the short video platform Likee continued to focus on the exploration, cultivation and support of content creators in various categories, and launched the "Ten Thousand People and Ten Thousand Fans" creator support activity in the core market, and continued to provide more traffic support and incentives to creators of various vertical categories; at the same time, Likee continued to hold various theme events and challenge activities in various places to further explore the best and most talented content creators in various categories. With the help of various creator support activities, in the third quarter, the number of official certified creators in Likee increased by 17% month-on-month.

Likee launched the Superlike function, providing creators with diverse monetization channels

To encourage more creators to join the community, Likee launched the Superlike function in Russia, Indonesia, Middle East and other regions in the second quarter, so that users can help their favorite creators and short video works. In Russia, Superlike has received a lot of attention from creators after it was launched on a small scale, and the number of certified creators MoM increased by 7.1% month-on-month. This function will enhance the emotional connection between content creators and a wider fan base, and at the same time provide content creators with diverse monetization channels, encouraging content creators to produce better content. In the future, with the help of more talented content creators, Likee will build a more active and rich content ecosystem to prepare for the next step of better expanding its user base.

function iteration and positioning transformation. Open the imagination space for social applications. Good application software

will always grow through repeated repairs, testing and iterations. Especially in the current situation where consumers around the world are scarce about attention and are generally fond of the new and old, the unchanging social software will only be eliminated in the ever-changing wave.

Huaju Group pays special attention to product function iteration, and uses more humane and entertaining functions to open up users' imagination space for social applications, improve satisfaction while increasing user stickiness.

In the third quarter of this year, Bigo Live further improved the user's experience in the live broadcast room by continuously optimizing the multi-person room broadcast tool and launching new functions such as small windows and 12-micro room, driving the number of multi-person room broadcasters to increase by 2.3% month-on-month , and the average broadcast time per person Q3 increased by 5.3% month-on-month Q2. In addition, Bigo Live continues to create user interaction scenarios outside the live broadcast room, continuously polishes the BAR asynchronous content ecosystem to encourage users to produce content, and the average BAR browsing time increases by 8.1% month-on-month Q2.

In addition, Hago adjusted its needs based on product strategic positioning in the third quarter, and continued to focus on the iteration of product social interaction related functions, from focusing on casual games, gradually transforming into a multi-person audio and video interactive social platform to further meet the needs of user entertainment interaction. After a series of adjustments, Hago has initially achieved a significant improvement in traffic structure transformation and user interaction levels. The penetration rate of channel increased by 4.0% month-on-month, the penetration of home group functions increased by 9.9% month-on-month, and the average per capita time for voice rooms increased by 14.3% month-on-month.

Chairman and CEO of Huya Group Li Xueling said: "Huya will further deepen the localization of product content and social ecology, continue to build an interest-based global social interaction community for users, achieve healthy and sustainable growth of global business, and create greater value for users and shareholders."

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