Tesla challenger Nio and game livestreaming platform Huya released their quarterly results on Tuesday, with both firms having something to cheer about.
Shanghai-based Nio is on course to become profitable in the second quarter of 2020, with its net losses shrinking by 64.2% year-on-year to 1.2 billion yuan ($166.5 million), helped by the growing demand for its electric vehicles. The second-quarter net losses also represent a 30.4% drop from the previous quarter.
Nio said that it delivered 10,331 electric vehicles in the April-June period, a sharp jump from 3,553 units in the same quarter of 2019. Nio’s rosy sales figures come at a time when China’s auto market is gradually recovering from the fallout of the Covid-19 pandemic, with sales of new energy vehicles in July rising by 19.3% year-on-year to 98,000 cars.
Driven by the strong deliveries, Nio more than doubled its revenue to 3.7 billion yuan during the period. The U.S.-listed company predicted that its third-quarter revenue is likely to reach between 4.05 billion yuan and 4.21 billion yuan.
Huya outperformed Nio in terms of profitability during the second quarter. New York Stock Exchange-listed Huya, which is considering a non-binding proposal from Tencent for a possible merger with its Nasdaq-listed domestic rival DouYu, grew its net income by 86.2% year-on-year to 226.8 million yuan on revenue of 2.7 billion yuan. The profit growth echoed an increase in Huya’s monthly active users (MAUs), which rose by 17.1% year-on-year to 168.5 million.
Huya CEO Dong Rongjie said in a statement that the company is in the process of building one-click streaming services within some of Tencent’s games to attract more broadcasters. Tencent is the largest shareholder of both Huya and DouYu, with a 36.9% stake in Huya and a 38% holding in DouYu.
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