Tencent Music Entertainment Group (TME) 2024 Q4 法說會逐字稿

Good evening and good morning, and welcome to Tencent Music Entertainment Group's fourth-quarter and full-year 2024 earnings conference call. I'm Millicent Tu, Head of IR. We announced our quarterly financial results earlier today before the US market opened. The earnings release is now available on our IR website and via newswire services.

晚上好，早安，歡迎參加騰訊音樂娛樂集團2024年第四季及全年財報電話會議。我是投資者關係主管 Millicent Tu。我們今天稍早在美國市場開盤前公佈了季度財務業績。現在您可以在我們的 IR 網站和新聞通訊服務上查看收益報告。

During today's call, you'll hear from Mr. Kar Shun Pang, our Executive Chairman; and Mr. Ross Liang, our CEO, who will share an overview of our operations and business strategy updates. Then Ms. Shirley Hu, our CFO, will discuss our financial results before we open the call for questions.

在今天的電話會議中，您將聽到我們的執行主席 Kar Shun Pang 先生的演講；以及我們的執行長 Ross Liang 先生，他將分享我們的營運概況和業務策略更新。然後，我們的財務長 Shirley Hu 女士將在我們開始提問之前討論我們的財務結果。

Before we continue, I refer you to the Safe Harbor statements in our earnings release, which applies to today's call as we may make forward looking statements. Please note that we discuss non-IFRS measures today, which (inaudible) is being and reconciled to the most comparable measures reported under IFRS in our earnings release and filings with the SEC.

在我們繼續之前，我請您參閱我們收益報告中的安全港聲明，該聲明適用於今天的電話會議，因為我們可能會做出前瞻性陳述。請注意，我們今天討論的是非國際財務報告準則 (IFRS) 指標，這些指標（聽不清楚）正在進行調整，並與我們在收益報告和向美國證券交易委員會 (SEC) 提交的文件中根據國際財務報告準則報告的最具可比性的指標進行協調。

(Event Instructions) And please be advised that today's call is being recorded. With that, I'm very pleased to turn the call over to Kar Shun, Executive Chairman of TME. Kar Shun?

（活動說明）請注意，今天的通話正在錄音。現在，我非常高興將電話轉給TME執行主席嘉順 (Kar Shun)。家順？

Thank you, Millicent. Hello, everyone, and thank you for joining our call today. 2024 market year of significant progress for TME characterized by a return to top-line growth and impressive profit margin expansion, fueled by robust performance in online music services, our pioneering initiatives to grow and diversify our services across the music value chain have successfully reshaped the industry landscape and enrich our ecosystem.

謝謝你，米利森特。大家好，感謝您今天的電話會議。 2024年是TME取得重大進展的市場年，其特點是恢復營收成長和令人印象深刻的利潤率擴張，這得益於線上音樂服務的強勁表現，我們在整個音樂價值鏈中發展和多樣化服務的開拓性舉措成功重塑了行業格局並豐富了我們的生態系統。

This, in turn, has effectively boosted our subscriber conversion efficiencies and lifetime value. We closed the fourth quarter with advancements across key areas of online music business. As an example, in addition to continued strength in music subscriptions, our advertising and artist-related services delivered strong growth, laying a stronger foundation for future development (technical difficulty).

這反過來又有效地提高了我們的用戶轉換效率和終身價值。我們在第四季度結束時在線音樂業務的關鍵領域都取得了進展。例如，除了音樂訂閱業務持續保持強勁成長外，我們的廣告和藝人相關服務也實現了強勁成長，為未來發展奠定了更堅實的基礎（技術難度）。

As we enter 2025, we are building on this momentum to unlock further value for both creators and users alike. Our dual-engine strategy, combining rich content and platform innovation positions us to capture emerging opportunities and efficiency gains across our platform. We are optimistic in the company's future growth prospects, which is reflected in our announcement of an annual dividend of USD273 million and a new and expanded share repurchase program of up to USD1 billion.

隨著我們進入 2025 年，我們將利用這一勢頭為創作者和用戶釋放更多價值。我們的雙引擎策略結合了豐富的內容和平台創新，使我們能夠在整個平台上抓住新興機會並提高效率。我們對公司未來的成長前景持樂觀態度，這體現在我們宣布2.73億美元的年度股息以及高達10億美元的新的和擴大的股票回購計劃中。

At the heart of our mission is empowering musicians and delighted users with exceptional content. Our vast library of content covers, all music genres and almost every aspect of the music industry, providing a seamless and holistic user experience on our platform. By the end of 2024, our music and audio library exceeded 216 million licensed and co-created tracks from domestic and international labels, up from 200 million at the end of the prior year.

我們的使命核心是透過出色的內容為音樂家和滿意的用戶提供支援。我們龐大的內容庫涵蓋了所有音樂流派和音樂產業的幾乎所有方面，在我們的平台上提供無縫和全面的用戶體驗。到 2024 年底，我們的音樂和音頻庫擁有來自國內外唱片公司的授權和共同創作的曲目超過 2.16 億首，高於上一年年底的 2 億首。

To enhance our users' music listening experience, here are a few highlights worth sharing, which helped contribute to a new record high of users' average daily time spend. First, we recently renewed our strategic contracts with international labels, including SM Entertainment and Kakao Entertainment, expanding our coverage of high-quality music content libraries. These collaborations have also fostered a deeper cooperation in areas such as premium sun facts, live concerts and artist merchandise.

為了提升用戶的音樂聆聽體驗，以下是一些值得分享的亮點，這有助於創下用戶平均每日使用時間的新高。首先，我們最近與 SM Entertainment 和 Kakao Entertainment 等國際唱片公司續簽了戰略合同，擴大了我們的優質音樂內容庫的覆蓋範圍。這些合作也促進了優質陽光資訊、現場音樂會和藝術家商品等領域的更深入合作。

Additionally, we have established partnerships with renowned Chinese artists such as Dao Lang and Tayu Lo and reaching our music library with hundreds of Chinese classics and providing TMEs users had started access to new songs releases. Our industry insights and extensive resources continue to support artists in their creative journey. For example, in the fourth quarter, we collaborated with our strategic partner, artists, Angela Zhang [Jiang Shao Han] to produce, we lease and promote her album (spoken in Chinese).

此外，我們還與刀郎、羅大佑等中國知名藝術家建立了合作夥伴關係，並將數百首中國經典歌曲納入我們的音樂庫，並為TMEs用戶提供新歌曲的發布權限。我們的行業洞察力和豐富的資源持續支持藝術家的創作之旅。例如，在第四季度，我們與策略夥伴、藝術家張韶涵合作製作、租賃和推廣她的專輯（以中文朗讀）。

With our platform elevated influence, we expanded her reach to a broader audience of music lovers, earning while widespread acclaim. Additionally, we produced theme songs and original soundtracks for Tencent Video (inaudible), including Blossom and Guardians of the Dafeng, as well as for movies such as A Tapestry of Legendary Land, and TIGER WOLF RABBIT. This sounds quickly downloaded place for music lovers and movie viewers alike.

隨著我們平台影響力的提升，她接觸到的聽眾範圍擴大到了更廣泛的音樂愛好者，同時贏得了廣泛的讚譽。此外，我們也為騰訊影片（聽不清楚）製作了《花開月正圓》和《大豐守護者》等主題曲和原聲帶，以及《錦繡江山》和《虎狼兔》等電影製作了主題曲和原聲帶。對於音樂愛好者和電影觀眾來說，這是一個可以快速下載音樂的地方。

Second, we remain at the forefront in music consumption when it comes to innovation. As an example, we transformed the fan engagement through unique digital and physical experiences such as artist merchandise and live experiences. In the fourth quarter, while we produced physical albums for Xiao Zhan and Lay Zhang, we also provide options for users to purchase as they use to seeing merchandise along with digital albums and create immersive experience, such an approach not only boost album sales, but also opened new avenues for artists to connect with fans.

第二，我們在音樂消費創新方面仍處於領先地位。例如，我們透過獨特的數位和實體體驗（如藝術家商品和現場體驗）改變了粉絲的參與。第四季度，我們在為蕭戰、張藝興製作實體專輯的同時，也為用戶提供了購買選項，讓用戶習慣於在購買數位專輯的同時看到商品，營造沉浸式的體驗，這種做法不僅提升了專輯的銷量，也為藝人與粉絲溝通開闢了新的途徑。

We also partnered with Mayday, to host a groundbreaking online New Year Eve's concerts, which was promoted across multiple short video platforms and social media channels. The concert success and popularity earned us broad recognition and reinforced our commitment to delivering innovative music experiences.

我們也與五月天合作，舉辦了一場開創性的線上跨年演唱會，並在多個短視頻平台和社交媒體渠道進行推廣。音樂會的成功和受歡迎程度為我們贏得了廣泛認可，並堅定了我們提供創新音樂體驗的承諾。

Third, our SVIP membership remains a cornerstone of our strategy, catering to the unique needs of our most dedicated users by adding comprehensive privileges to our SVIP experience, we saw a strong sequential growth in membership and ARPPU. For example, JJ Lin's latest album Turn of a Page, is now available to SVIP members.

第三，我們的 SVIP 會員資格仍然是我們策略的基石，透過為我們的 SVIP 體驗添加全面的特權來滿足我們最忠實用戶的獨特需求，我們看到會員人數和 ARPPU 實現了強勁的連續增長。例如林俊傑的最新專輯《Turn of a Page》，目前已開放給SVIP會員。

We have also introduced new SVIP perks including high-definition willing of Mayday (inaudible) and (inaudible) online concerts, delivering an unparalleled experience for our most loyal members. We will roll out more VIP access, meet and greet opportunities, limited editions, merchandise, personalized experiences and more while empowering artists and record labels to explore new ways to interact with targeted audience.

我們還推出了新的 SVIP 特權，包括五月天（聽不清楚）和（聽不清楚）線上音樂會的高清觀看，為我們最忠實的會員提供無與倫比的體驗。我們將推出更多的 VIP 通道、見面會、限量版、商品、個人化體驗等，同時支持藝術家和唱片公司探索與目標受眾互動的新方式。

Last but not least, we recognize that our success is deeply tied to the well-being of our planet, people and communities. As such, our commitment to ESG excellence is being grounded in our culture and business practice.

最後但同樣重要的一點是，我們認識到我們的成功與地球、人民和社區的福祉密切相關。因此，我們對 ESG 卓越的承諾植根於我們的文化和商業實踐。

In 2024, we made significant strides in supporting female musicians to foster a more diverse and inclusive music community. The number of female artists with support reached 192,000. Additionally, in the fourth quarter, we partnered with the Ministry of Education and multiple NGOs to launch the writing songs for Panda's initiative, designed to promote the perfect biodiversity awareness through the influence of music.

2024年，我們在支持女性音樂家創造更多元化和包容的音樂社群方面取得了重大進展。獲得支持的女性藝人數量達到19.2萬人。此外，我們在第四季度與教育部及多家非政府組織合作，發起了「為熊貓寫歌」的倡議，旨在透過音樂的影響力，提升人們對生物多樣性的認識。

Overall, we are pleased with solid performance that we have achieved in 2024. We are looking forward to delivering more high-quality growth in 2025 and we'll continue to collaborate with industry partners to nurture our Vibe music ecosystem that brings people together.

整體而言，我們對 2024 年所取得的穩健業績感到滿意。我們期待在 2025 年實現更高品質的成長，並將繼續與產業合作夥伴合作，培育將人們聚集在一起的 Vibe 音樂生態系統。

Now, I would like to turn the call over to Ross for more details on your overall platform development. Ross, please go ahead. Thank you.

現在，我想將電話轉給羅斯，以了解更多關於你們整體平台開發的細節。羅斯，請繼續。謝謝。

Thank you, Kar Shun. Hello, everyone. In addition to our enriched content offering, our own (inaudible) focus on exceptional user experiences and music consumption scenarios innovation has been a key driver of our growth. These efforts have prepared us to the forefront of China music streaming industry and will remain central to our future growth strategy, further enhancing the value of music.

謝謝你，嘉順。大家好。除了我們提供的豐富內容之外，我們自己（聽不清楚）對卓越用戶體驗和音樂消費場景創新的關註一直是我們成長的主要動力。這些努力使我們站在中國音樂串流媒體產業的前列，並將繼續成為我們未來成長策略的核心，進一步提升音樂的價值。

Benefiting from our expanding content ecosystem and a stronger user engagement of online music services was again delivered robust growth in the fourth quarter. Our subscriber base continued to expand, and ARPPU showed solid growth year over year and quarter over quarter. Our SVIP membership has also made good progress users (inaudible) notable higher and ARPPU steadily expanding.

受益於我們不斷擴展的內容生態系統和更強的用戶參與度，線上音樂服務在第四季度再次實現強勁成長。我們的用戶群持續擴大，ARPPU 年比、季比均呈現穩健成長。我們的 SVIP 會員也取得了良好的進展，用戶（聽不清楚）顯著增加，ARPPU 穩步擴大。

To foster user loyalty, we have optimized the efficiency of our accommodation algorithm. (inaudible) AI to bolster novel user experiences and enriched music consumption scenarios to expand our reach. This IFRS led to a substantial increase in user time spent on our platform in the fourth quarter. Let me give you some key examples.

為了培養用戶忠誠度，我們優化了住宿演算法的效率。（聽不清楚）人工智慧將增強新穎的使用者體驗並豐富音樂消費場景，從而擴大我們的影響力。該 IFRS 導致第四季度用戶在我們平台上花費的時間大幅增加。讓我舉一些關鍵的例子。

First, we imported users to curate and accumulate personal music (inaudible). We have enhancing their sense of belonging under stickiness, by optimizing our algorithms and improving the user interface, we made music discovery more fun and efficient. This led to the steady growth of recommendation driven streams year on year and quarter over quarter alongside a 10% year-over-year increase in user song collections. The latest revised to QQ Music and Kugou Music, also private users are more intuitive and personalized way for navigation.

首先，我們導入用戶來策劃和累積個人音樂（聽不清楚）。我們增強了他們在黏性下的歸屬感，透過優化我們的演算法和改進用戶介面，我們讓音樂發現變得更加有趣和高效。這使得推薦驅動的流量逐年、逐季穩定成長，同時用戶歌曲收藏量較去年同期成長 10%。這次對QQ音樂和酷狗音樂進行最新改版，也讓私人用戶以更直覺、更個人化的方式進行導航。

Second, we further elevated on quality with our airport audio effects and voice extraction technology, which are resonating very well with users. These features have become an important drug for our SVIP member share program. Our sound (inaudible) analysis the audio to match its song with the most suitable audio citing, ensure an optimal audio streaming performance. Our AI voice extraction features allows users to separate original (inaudible) and instrumental tracks with a single click. Users can either sing alongside their favorite artists or enjoy instrumental only mode for karaoke sessions.

第二，我們在機場音效和語音擷取技術上進一步提升了品質，並得到了使用者一致的好評。這些功能已成為我們SVIP會員共享計劃的重要組成部分。我們的聲音（聽不清楚）分析音訊以將其歌曲與最合適的音訊引用相匹配，確保最佳的音訊串流性能。我們的 AI 語音擷取功能可讓使用者只需點擊即可分離原始（聽不見）和樂器音軌。使用者既可以與自己喜歡的歌手一起演唱，也可以在卡拉 OK 時享受僅有樂器演奏的模式。

Third, we continue to expand music consumption scenarios, allowing users to enjoy music wherever they are, however they listen, and whatever moment they are in. During the fourth quarter, we broadened the partnership with [My Ping Service], Amap, and Baidu Maps to roll out a music navigation feature, providing users with a most and uninterrupted new streaming experience on the road.

第三，我們不斷拓展音樂消費場景，讓使用者無論在何時何地、以何種方式聆聽，都能享受音樂。第四季度，我們擴大了與【我的Ping服務】、高德地圖、百度地圖的合作，推出了音樂導航功能，為用戶提供全新、不間斷的出行串流體驗。

Through our in-depth collaboration with electric automakers, such as BYD and XPENG, we enriched the user's in-car entertainment experience by introducing AI voice attraction and (inaudible) karaoke features. We are pleased to say that our IoT space recorded steady growth with year-over-year and quarter-over-quarter increase in the fourth quarter.

透過與比亞迪、小鵬汽車等電動車製造商的深入合作，我們引入了AI語音吸引和（聽不見）卡拉OK功能，豐富了用戶的車載娛樂體驗。我們很高興地說，我們的物聯網領域在第四季度實現了穩步增長，同比和環比都有所增長。

To (inaudible) users, our (inaudible) terminals on TME, we also refined the PC streaming user interface and introduce an innovative like display function in the Windows task bar, all of which helped enhance user's music companionship.

對於（聽不清楚）用戶，我們在 TME 上的（聽不清楚）終端，我們還改進了 PC 串流媒體用戶介面，並在 Windows 工作列中引入了創新的類似顯示功能，所有這些都有助於增強用戶的音樂陪伴。

Moving on to some novel features and the fresh experiences we brought to users through constant innovations. First, we integrated the advanced capability of DeepSeek LLM to enjoy a more tailored and inclusive music creation experience. For instance, leveraging DeepSeek electric generation communities along our AI song writing feature, users can quickly create songs tailored to specific contests or modes. We also integrated DeepSeek in our AI assistance, common sections, recommendation page and other user touch points. This allow users to easily excise interesting music information, we saw song comments in (inaudible) and enjoy a more personalized music experience.

接下來介紹一些新穎的功能以及我們透過不斷創新為用戶帶來的全新體驗。首先，我們整合了 DeepSeek LLM 的先進功能，以享受更客製化、包容性的音樂創作體驗。例如，利用 DeepSeek 電力生成社群和我們的 AI 歌曲創作功能，使用者可以快速創作適合特定比賽或模式的歌曲。我們也將DeepSeek整合到我們的AI輔助、常用部分、推薦頁面和其他使用者接觸點。這使得用戶可以輕鬆地摘取有趣的音樂訊息，我們在（聽不清楚）中看到歌曲評論，並享受更個人化的音樂體驗。

Second, we launched our virtual fund community that impose users to express their feelings for artists and music. This immersive platform co-created by funds and artists enable users to personalize profiles, design communities and engage in multiuser synchronize screen sharing and (inaudible). It has cemented the bond between artists and their followers while driving user engagement and ecosystem vitality. Notable example in the fourth quarter includes virtual committees of GCT (spoken in Chinese) with their fan base growing significantly since launch.

其次，我們推出了虛擬基金社區，讓使用者表達對藝術家和音樂的感受。這個由基金和藝術家共同創建的沉浸式平台使用戶能夠個性化個人資料、設計社群並參與多用戶同步螢幕分享和（聽不清楚）。它鞏固了藝術家與其追隨者之間的聯繫，同時推動了用戶參與度和生態系統活力。第四季值得注意的例子包括 GCT 虛擬委員會（中文），其粉絲群自推出以來顯著成長。

Third, our interactive and incentive advised advertising has been effective in enabling advertisers to reach a broad music audience increasing adoption strength of our users and the brand connections. It in turn contributed strongly to our advertising revenue growth in the fourth quarter.

第三，我們的互動和激勵建議廣告有效地幫助廣告商接觸到廣泛的音樂受眾，增強了用戶的採用力度和品牌聯繫。這反過來又極大地促進了我們第四季的廣告收入成長。

Altogether, we have progressively redefined the music experience for our users and grew our ecosystem into a striving hub for music creation, promotion, and consumption. As we look at higher to 2025, we will continue to embrace AI technologies to import innovation, always the goal of creating the most beloved music platform for our users and creators. With that, I would like to turn the call over to Shirley, our CFO, for a deep time into our financials.

總而言之，我們逐步為使用者重新定義了音樂體驗，並將我們的生態系統發展成為音樂創作、推廣和消費的中心。展望2025年，我們將持續擁抱AI技術引進創新，始終致力於為使用者和創作者打造最受歡迎的音樂平台。說到這裡，我想把電話轉給我們的財務長 Shirley，讓她深入了解我們的財務狀況。

Thank you, Ross, and greetings to everyone. Let me now turn to our financial results. In the fourth quarter of 2024, our effective monetization of online music services and operational efficiency management continued to drive robust financial results. With strong performance in our Music Subscription and Advertising business, revenues continued its growth trajectory and achieved 8% year-over-year growth.

謝謝你，羅斯，向大家問好。現在我來談談我們的財務表現。2024年第四季度，我們對線上音樂服務的有效貨幣化和營運效率管理持續推動強勁的財務表現。憑藉音樂訂閱和廣告業務的強勁表現，營收繼續保持成長軌跡並實現了 8% 的同比增長。

Average net profit increased by 47% year over year, RMB2.08 billion and non-IFRS net profit rose by 43% year over year to RMB2.4 billion, marking the highest quarterly profit in our history. Total revenues in the fourth quarter of 2024 were RMB7.5 billion, up by 8% year over year. Online Music revenues increased by 16% year-over-year to RMB5.8 billion. The increase was mainly driven by strong growth of our Music Subscription revenues supplemented by growth in advertising revenues.

平均淨利年增47%至20.8億元，Non-IFRS淨利年增43%至24億元，創歷史季度利潤新高。2024年第四季總營收為人民幣75億元，年增8%。線上音樂收入年增16%至人民幣58億元。成長主要得益於我們的音樂訂閱收入的強勁成長以及廣告收入的成長。

Music Subscription revenues in the fourth quarter of 2024 reached RMB4 billion, representing an 18% increase year over year and a 5% rise sequentially. Monthly ARPU was RMB11.1 compared with RMB10.7 in the same period of last year. The number of online music paying users were 121 million representing a 13% increase year over year with quarterly net adds of 2 million users.

2024年第四季音樂訂閱收入達40億元人民幣，較去年同期成長18%，較上季成長5%。每月ARPU為人民幣11.1元，去年同期為人民幣10.7元。線上音樂付費用戶數達1.21億，年增13%，本季淨增加200萬用戶。

We have made good progress in our SVIP membership program, driven by the further expansion of comprehensive user privileges, including enhanced quality and effects and expanded the digital album library and include benefits for online concerts.

我們的SVIP會員計畫取得了良好進展，這得益於綜合用戶特權的進一步擴大，包括增強的品質和效果、擴大數位專輯庫和增加線上音樂會的福利。

Advertising revenues also achieved strong year-over-year growth, primarily due to the growth in ad-support model revenues. We continued to optimize our product offerings and advertising formats, the introduction of attractive interactive futures and enriched benefits, boosted the -- and translate for our Ad-supported advertising, enhanced user engagement and ECP and attracted a great number of advertisers this quarter.

廣告收入也實現了強勁的同比增長，這主要得益於廣告支援模式收入的成長。我們繼續優化我們的產品和廣告形式，推出有吸引力的互動未來和豐富的福利，提升和轉化我們的廣告支援廣告，增強用戶參與度和ECP，並在本季度吸引了大量廣告商。

Social entertainment services and other revenues were RMB1.6 billion, down by 13% year over year. We continue to innovate and develop new products and interactive features for social entertainment services. Our gross margin for Q4 reached 43.6% representing an increase of 5.3 percentage points year over year, driven by several factors: first, the robust growth of our subscription revenue, including SVIP memberships, advertising revenues in both online music and social entertainment and raising memberships effectively impacting our gross margin.

社交娛樂服務及其他收入為人民幣16億元，較去年同期下降13%。我們不斷創新並開發社交娛樂服務的新產品和互動功能。我們第四季的毛利率達到43.6%，比去年同期增加了5.3個百分點，這得益於以下幾個因素：首先，我們的訂閱收入強勁增長，包括SVIP會員資格、線上音樂和社交娛樂的廣告收入以及會員數量的增加有效影響了我們的毛利率。

Second, the scaling of our own content further improved our gross margin. Third, (inaudible) continues to be a key metric in managing our content royalty costs. Finally, for social entertainment services, the decline in (inaudible) increase outpaced the decrease in revenues.

其次，我們自有內容的規模進一步提高了我們的毛利率。第三，（聽不清楚）仍然是我們管理內容版稅成本的關鍵指標。最後，對於社群娛樂服務而言，（聽不清楚）成長的下降速度超過了收入的下降速度。

Moving on to operating expenses. In the fourth quarter of 2024, they amounted to RMB1.2 billion, representing 15.7% of our total revenues compared with 18.4% in the same period of last year. Same and marketing expenses were RMB248 million, down by 3% year over year. We will maintain our ROI-focused approach for promotion expenses while directing investments toward areas with long-term growth perspective, such as online music and content promotion. General and administrative expenses were RMB926 million, down by 8% year over year, primarily driven by lower employee-related frequencies.

繼續討論營運費用。2024年第四季，該項支出為人民幣12億元，占我們總收入的15.7%，去年同期為18.4%。同期行銷費用為2.48億元，年減3%。我們將繼續以投資回報率為重點來衡量推廣費用，同時將投資導向具有長期成長前景的領域，例如線上音樂和內容推廣。一般及行政開支為人民幣 9.26 億元，年減 8%，主要由於員工相關頻率降低。

The finance cost in the fourth quarter of 2024 reflected an unrealized foreign exchange gain arising from treasury management activities, which was largely affected by the fluctuation of the exchange rate between RMB and USD as of September 30 and December 31, 2024. Our effective tax rate for Q4 2024 was 16.9%, compared to 17.3% in the same period of 2023. We accrued withholding tax of RMB110 million in the fourth quarter of 2024.

2024年第四季的財務成本反映了資金管理活動產生的未實現匯兌收益，該收益在很大程度上受到2024年9月30日和12月31日人民幣兌美元匯率波動的影響。我們 2024 年第四季的有效稅率為 16.9%，而 2023 年同期為 17.3%。我們在 2024 年第四季提列了預扣稅人民幣 1.1 億元。

In Q4 2024, our net profit increased by 47% to RMB2.1 billion, and the net profit attributable to equity holders of the company increased by 50% to RMB2 billion. Non-IFRS net profit increased by 43% to RMB2.4 billion, and the non-IFRS network attributable to equity holders of the company increased by 45% to RMB2.3 billion, respectively.

2024年第四季，我們的淨利成長47%至人民幣21億元，歸屬於公司股東的淨利成長50%至人民幣20億元。非國際財務報告準則淨利年增43%至24億元人民幣，Non-IFRS歸屬於公司股東的淨利年增45%至23億元。

Our diluted earnings per ADS this quarter was RMB1.26, up 52% year over year. Non-IFRS diluted earnings per ADS increased to RMB1.47, up 47% year over year. These results underscore our effective monetization, enhanced operating efficient, and a benefit from our share repurchase group.

本季我們每股美國存託憑證攤薄收益為 1.26 元人民幣，較去年同期成長 52%。非國際財務報告準則下每股美國存託憑證攤薄收益增至1.47元，較去年同期成長47%。這些結果凸顯了我們有效的貨幣化、增強的營運效率以及來自股票回購集團的好處。

As of December 31, 2024, our combined balances of cash, cash equivalents, time deposits, and short-term investment were RMB37.6 billion, as compared with RMB36 billion as of September 30, 2024. This combined balance was also affected by trends in exchange rate of RMB to USD (inaudible) the balance sheet to date.

截至 2024 年 12 月 31 日，我們的現金、現金等價物、定期存款及短期投資的綜合餘額為人民幣 376 億元，而截至 2024 年 9 月 30 日為人民幣 360 億元。這項綜合餘額也受到迄今為止資產負債表上人民幣兌美元匯率趨勢的影響（聽不清楚）。

In general, 2025, we completed the USD500 million repurchase announced in March 2023, of which approximately [USD100 million] were repurchased in the fourth quarter of 2024. Today, we are announcing a another share repurchase program to repurchase up to USD1 billion during a 24-month period commencing from March 2025.

整體而言，2025年，我們完成了2023年3月宣布的5億美元回購，其中約[1億美元]於2024年第四季回購。今天，我們宣布另一項股票回購計劃，從 2025 年 3 月開始的 24 個月內回購金額最高為 10 億美元。

Next, I'll briefly discuss our performance for the full year of 2024. Total revenues were RMB28.4 billion, up by 2% year over year. Revenues from online music services were RMB21.7 billion, up by 25% year over year. The increase was driven by strong growth in music subscription revenues and revenues from advertising services supplemented by growth in revenues from offline performances.

接下來，我將簡單討論一下我們2024年全年的業績。總營業收入為人民幣284億元，較去年同期成長2%。線上音樂服務收入為人民幣217億元，較去年同期成長25%。這一成長主要得益於音樂訂閱收入和廣告服務收入的強勁成長，以及線下演出收入的成長。

Our music subscription revenues were RMB15.2 billion, up by 26% year over year, driven by growth in both (technical difficulty). Revenues from social entailment service declined by 36% year over year. Gross margin in 2024 was 42.3%, up by 7 percentage points year over year due to the reasons discussed earlier. Total operating expenses for 2024 were RMB4.7 billion, down by 7% year-over-year, singing and marketing expenses in 2024 where [RMB0.9 billion], down by 4% year over year. General and administrative expenses were RMB3.5 billion, down by 8% year-over-year, primarily due to lower employee-related expenses.

我們的音樂訂閱收入為 152 億元，年增 26%，主要得益於（技術難度）。社會安全服務收入較去年同期下降36%。2024 年的毛利率為 42.3%，由於前面討論的原因，年增 7 個百分點。2024年總營業費用為47億元人民幣，較去年同期下降7%，其中2024年演唱及行銷費用為9億元人民幣，較去年同期下降4%。一般及行政開支為人民幣35億元，較去年同期下降8%，主要由於員工相關開支減少。

In 2024, we achieved a record high annual net profit of RMB7.1 billion, up by 36% year over year. Net profit attributable to active holders of the company was RMB6.6 billion. Non-IFRS net profit and non-IFRS net profit attributable to equity holders of the company was RMB8.1 billion and RMB7.7 billion, respectively.

2024年，我們實現年度淨利71億元，年增36%，創歷史新高。歸屬於公司活躍股東的淨利為人民幣66億元。非國際財務報告準則歸屬於公司股東的淨利和Non-IFRS淨利分別為人民幣81億元和人民幣77億元。

Finally, I'll conclude with some remarks on our outlook for 2025. Looking ahead, we will focus on driving high-quality growth in our (inaudible) expanding SVIP memberships and growing our Advertising business. We will also continue to diversify our offerings across the (inaudible) value chain. We will continue to invest in areas such as original content production, high-quality content, and innovative technologies globally to further boost the user engagement, (inaudible) user experience, and enrich our ecosystem.

最後，我將對 2025 年的展望做一些總結。展望未來，我們將專注於推動（聽不清楚）不斷擴大的 SVIP 會員的高品質成長並發展我們的廣告業務。我們也將繼續在（聽不清楚）價值鏈中提供多樣化的產品。我們將繼續在全球範圍內投資原創內容製作、優質內容和創新技術等領域，以進一步提高用戶參與度、（聽不清楚）用戶體驗並豐富我們的生態系統。

We remain confident in the health growth prospects of both the music industry that we are part of and we remain committed to delivering strong returns for our shareholders. This concludes our prepared remarks. We are now open for your questions.

我們對所屬的音樂產業的健康發展前景充滿信心，並致力於為股東帶來豐厚的回報。我們的準備好的演講到此結束。我們現在願意回答您的問題。

(Event Instructions) Alicia Yap, Citi.

(活動說明) 花旗銀行的 Alicia Yap。

(interpreted) I wonder if management can share some guidance and direction of how we should be thinking about the 2025 growth outlook, especially in terms of the music subscription revenue growth. On the net add expectation and the non-subscription music revenue, especially on the online advertising growth as well as the gross margin and also the net margins trends that we should be expecting for 2025?

(翻譯) 我想知道管理層是否可以分享一些指導和方向，關於我們應該如何看待 2025 年的成長前景，特別是在音樂訂閱收入成長方面。淨增預期和非訂閱音樂收入，尤其是網路廣告成長以及毛利率以及我們應該期待 2025 年的淨利潤趨勢？

Thank you, Alicia. Thank you so much for your questions. And before we are going to dive into the 2025 outlook. I think it will be good for us to have a quick recap on the key strategy and achievement that we have done in 2024. As I mentioned earlier during today's call, I think that 2024 was a very standout year for us.

謝謝你，艾莉西亞。非常感謝您的提問。在我們深入探討 2025 年展望之前。我認為，快速回顧一下我們在 2024 年制定的關鍵策略和所取得的成就會很有幫助。正如我在今天的電話會議上提到的，我認為 2024 年對我們來說是非常突出的一年。

The strong performance of the online music services, which drove the high-quality growth of the company. and we saw the higher fee revenue growth and notable margin expansion, which highlights the potential of our rich service offerings as well. Our focus on user experience and continuous product and service innovation have been crucial for our success.

線上音樂服務表現強勁，帶動公司高品質成長。我們的費用收入成長更快，利潤率顯著擴大，這也凸顯了我們豐富的服務產品的潛力。我們對使用者體驗的關注以及持續的產品和服務創新對於我們的成功至關重要。

So this has been evidenced by a balanced expansion in both the subscriber base and also the ARPPU over the past few quarters. So both of the subscription and other music-related businesses, record a very strong performance. In particular, our robust content ecosystem continue to be the cornerstone of our subscription service and has fueled the growth of emerging businesses like the artist merchandise and also concerts and both of which saw strong top-line growth in 2024.

過去幾個季度，用戶群和 ARPPU 的均衡擴張就證明了這一點。因此，訂閱業務和其他音樂相關業務都表現非常強勁。特別是，我們強大的內容生態系統繼續成為我們訂閱服務的基石，並推動了藝術家商品和音樂會等新興業務的成長，這兩項業務在 2024 年都實現了強勁的收入成長。

Secondly, we are also seeing that our innovative reward-based advertising, enhanced user engagement and enable advertisers to efficiently with the target audience and optimizing the ROI. The last but not least, I think that our SVIP services has gained a very significant recognition from both users and the music industry, driving a higher user stickiness and ARPPU further demonstrating our strong execution capabilities.

其次，我們也看到，我們創新的基於獎勵的廣告，增強了用戶參與度，使廣告主能夠有效率地與目標受眾接觸並優化投資報酬率。最後但同樣重要的一點是，我認為我們的SVIP服務已經獲得了用戶和音樂產業的非常顯著的認可，推動了更高的用戶黏性和ARPPU，進一步證明了我們強大的執行能力。

So all of this has really laid a very solid foundation for the future development of our business. So therefore, I think in a nutshell, in the year of 2025, we will continue to focus on strengthening our business presence across the music value chain to offer the users more diverse and engaging music entertainment experiences. And we are optimistic about our growth trajectory for the year. and continue to expand accelerated top line growth and better margins for the 2025 as well.

所以這一切確實為我們業務的未來發展奠定了非常堅實的基礎。因此，我認為簡而言之，在 2025 年，我們將繼續專注於加強我們在整個音樂價值鏈中的業務影響力，為用戶提供更加多樣化和更具吸引力的音樂娛樂體驗。我們對今年的成長軌跡感到樂觀。並為2025年繼續加速營收成長及提高利潤率。

And also the online music is expected to achieve a healthy growth and driven by a steady increase in paying users and ARPU. And we will continue to explore new business opportunities like the content ecosystem, IoT, long-form audios, and international markets as well.

並且線上音樂也有望實現健康成長，並受到付費用戶和 ARPU 穩步增長的推動。我們也將繼續探索新的商業機會，如內容生態系統、物聯網、長篇音訊和國際市場。

Gross margin is 43.6% in Q4 2024, increased by 5.3% year over year and increased 1% quarter over quarter. Our gross margin has been expanding over the past several quarters due to a few key factors. First, the rapid growth of our subscription revenue, including SVIP memberships advertising revenues in both online music and social entertainment, and racing memberships has contributed to gross margin expansion.

2024年第四季毛利率為43.6%，年增5.3%，季增1%。由於幾個關鍵因素，我們的毛利率在過去幾個季度一直在擴大。首先，我們的訂閱收入（包括SVIP會員、線上音樂和社交娛樂的廣告收入以及賽車會員收入）的快速增長促進了毛利率的擴大。

Second, the scoring of our own content further improved our gross margin. Third, we have continued to optimize our content cost structure and remain focused on improving our (inaudible) all cost items. Fourth, the optimized live streaming revenue-sharing cost strategy, the live streaming revenue sharing ratio decreased. The decline in revenue share increase outpaced the decrease in streaming revenues.

第二，我們自有內容的評分進一步提高了我們的毛利率。第三，我們持續優化內容成本結構，並持續專注於改善我們的（聽不清楚）所有成本項目。第四，優化直播分成成本策略，直播分成比例降低。收入份額的下降速度超過了串流媒體收入的下降速度。

Looking forward to 2025, we believe that both factors will continue to play an important role in further expanding our gross margin. And about the adjusted net [probate] margin, we will continue to manage our business regionally, using an ROI-based approach with increasing investments in online milk and content promotions. We will continue to focus on technology empowerment and explore investor innovations and new opportunities brought by emerging technologies.

展望2025年，我們相信這兩個因素將繼續發揮重要作用，進一步擴大我們的毛利率。關於調整後的淨利潤率，我們將繼續以區域為單位管理我們的業務，採用基於投資回報率 (ROI) 的方法，增加對線上牛奶和內容促銷的投資。我們將繼續專注於科技賦能，探索投資者創新和新興技術帶來的新機會。

Operating expenses are expected to increase slightly with the operating expense ratio remained flat in 2025. Looking forward to 2025, assume a stable external environment. We expect our revenue growth to accelerate with room for improvement in both adjusted net profit and margin.

預計2025年營業費用將略有增加，營業費用率將維持穩定。展望2025年，假設外部環境穩定。我們預期我們的營收成長將加速，調整後的淨利潤和利潤率都有提升空間。

(interpreted) I also would like to comment on the Advertising business. For our existing Advertising business, we have three forms. The first one is a [touch] screen. The second one is free listening mode by watching the ads. But at the same time, we also have the website.

（翻譯） 我也想對廣告業務發表一些評論。對於我們現有的廣告業務，我們有三種形式。第一個是觸控螢幕。第二種是看廣告的免費收聽模式。但同時，我們也有網站。

Where I believe that in the net in the future, especially in 2025 with our website model and the online leading model. Our model will help to choose the building advertising to achieve a healthy growth. So at the same time, we will also pay much attention to the operation of the advertisers, especially in the consumable market and the luxury product market and also serving the online service and the game industry.

我相信在未來的網絡，特別是2025年，我們的網站模式和線上領先模式。我們的模型將有助於選擇樓宇廣告以實現健康成長。所以同時我們也會非常關注廣告主的經營，特別是在消費品市場和奢侈品市場，同時也服務於線上服務和遊戲產業。

We will continue to engage advertisers from different industries, help them to further enrich their reach to the target audience. So that we can work with them to help to establish a good corporation model. So we believe that in the 2025, our website model will continue to make good progress, even if the non-subscriber DAU is doing, but still by diversifying the format of the business, of advertising, we will continue to improve the stream of the revenue in advertising for healthy growth.

我們將繼續與不同行業的廣告商合作，幫助他們進一步擴大對目標受眾的覆蓋範圍。這樣我們就可以與他們合作，幫助他們建立良好的公司模式。因此，我們相信，在2025年，我們的網站模式將繼續取得良好的進展，即使非訂閱用戶的DAU受到影響，但透過多樣化業務形式和廣告，我們將繼續改善廣告收入流，實現健康成長。

Lincoln Kong, Goldman Sachs.

高盛的林肯孔（Lincoln Kong）。

(interpreted) Congrats on the very strong 2024 results. My question is about the balance between subscriber and ARPU growth and our priority here. So first of all, we have seen 2 million as in the fourth quarter. Should we expect a similar pace of growth into 2025 per quarter? And for ARPU, how is the sort of the user retention rate for the Super VIP at the moment? How should we think about the potential ARPU continued growth into this year?

(翻譯)恭喜您在 2024 年取得非常強勁的成績。我的問題是關於用戶數量和 ARPU 增長之間的平衡以及我們的優先事項。首先，我們看到第四季的數字是 200 萬。我們是否應該預期到 2025 年每季的成長速度都會相似？就ARPU而言，目前超級VIP的用戶留存率怎麼樣？我們該如何看待今年潛在的 ARPU 持續成長？

(interpreted) As we mentioned earlier, we still remain confident on the revenue and profit growth in 2025. Where at the same time, in my presentation, we also mentioned about the subscription model and the subscriber. We believe that the subscriber number and ARPPU will continue to grow.

(翻譯) 正如我們之前提到的，我們仍然對 2025 年的收入和利潤成長充滿信心。同時，在我的演講中，我們也提到了訂閱模式和訂閱者。我們相信用戶數量和ARPPU將持續成長。

Well, at the same time, we also keep an eye on the potential competitors in the market. We will keep an eye on their dynamics. Therefore, to finance our operational metrics to make sure we have a solid growth on revenue and profit.

嗯，同時，我們也關注市場上的潛在競爭對手。我們將持續關注他們的動態。因此，為我們的營運指標提供資金以確保我們的收入和利潤將穩健成長。

Regarding the net [ads], we still would like to maintain our existing growth pace because the ever for the team or for us, we do have great advantage on content. This is also a target we hope we could achieve. But it is worth for our attention that there is indeed a guidance, especially the guidance between the subscriber base and the ARPPU. So at the same time, we noticed that subscriber is quite price sensitive. But for our strategy, we will not sacrifice our interest by rolling out aggressive low price to gain for the short-term growth.

至於淨廣告，我們仍然希望保持現有的成長速度，因為無論對團隊或我們自己來說，我們在內容上都有很大的優勢。這也是我們希望實現的目標。但值得注意的是，確實存在指導，特別是用戶群和ARPPU之間的指導。因此同時，我們注意到用戶對價格非常敏感。但對於我們的策略，我們不會為了短期成長而推出激進的低價而犧牲我們的利益。

So at the same time, we also have the industry-leading ARPPU. But at the same time, we still hope that we can continue the ARPPU growth. And based upon the ARPPU growth, the halfway could be differentiated on the self-produced content and the product portfolio, and we're also innovatively introduce some features, including the sound quality and sound effect to be the privileged futures as our competitive edge to continue to leverage the healthy growth and engage more subscribers.

所以同時，我們也擁有業界領先的ARPPU。但同時，我們仍希望ARPPU能夠繼續成長。並且基於ARPPU的成長，中途可以在自製內容和產品組合上進行差異化，我們也創新地引入了一些功能，包括音質和音效，作為我們未來的競爭優勢，繼續保持健康成長，吸引更多的用戶。

So regarding the ARPPU, as you may notice, we do have our unique advantage on content itself, while at the same time, we also continue to optimize the user experience and engage the privilege to our users. So for us, we have two measures.

所以關於ARPPU，正如你可能注意到的，我們在內容本身上確實有獨特的優勢，同時，我們也在不斷優化用戶體驗，並為我們的用戶提供特權。所以對我們來說，我們有兩個措施。

First of all, we hope for the basic subscription model, especially those users who pay RMB15 to RMB18 per month per account. We hope that we can continue to improve our service by improving the price. And by so doing, we will be able to consolidate this user base by improving the ARPPU for sustainable growth.

首先，我們希望有基本的訂閱模式，特別是那些每個帳戶每月支付15到18元人民幣的用戶。我們希望能夠透過改善價格來繼續改善我們的服務。透過這樣做，我們將能夠透過提高 ARPPU 來鞏固這個用戶群，實現永續成長。

Well, secondly, just now, you also asked about SVIP. In Q4 2024, we also see that for our SVIP, no matter for the size or for the price, we also upward trending, which help us to register a growth exceeding our expectations.

嗯，其次，剛才您也問到了SVIP的問題。在 2024 年第四季度，我們也看到，對於我們的 SVIP，無論規模或價格，都呈上升趨勢，這有助於我們實現超出預期的成長。

From the user experience perspective, SVIP does provide the long-form audio as well as sound quality and sound effect features, the user really like it because of the privilege, we will continue to advance our SVIP business. It is also worth mentioning that the time spent on our platform per subscriber and (inaudible) is always kept the historical high level. So no matter for the general subscriber or our SVIP, we will be able to continue to optimize our operations to retain more healthy subscribers with us.

從使用者體驗的角度來說，SVIP確實提供了長音訊以及音質音效的功能，使用者因為有這個特權所以非常喜歡，我們會繼續推進我們的SVIP業務。另外值得一提的是，我們平台的平均每位使用者使用時間（聽不清楚）始終保持歷史最高水準。因此，無論是普通訂閱者還是我們的 SVIP，我們都將能夠繼續優化我們的運營，以留住更多健康的訂閱者。

And the next question comes from (inaudible).

下一個問題來自（聽不清楚）。

(interpreted) Curious if your management can call out any consumer sentiment changes towards discretionary spending, such as music and concerts. And by the way, is the average concert ticketing price, right, recently, is it trending up or trending down? And also how is the reception based on your observation so far?

(解釋) 好奇您的管理階層是否可以指出消費者對音樂和音樂會等可自由支配支出的情緒變化。順便問一下，最近音樂會的平均票價是呈上漲還是下降趨勢？根據您目前的觀察，其反應如何？

Thank you so much for your questions. And we have observed the debt. Simply listening to songs online, no longer satisfied of the mind of music lovers on music-related entertainment. They basically will increasingly seek the live atmosphere and enjoyment that comes from experiencing the live concerts and music festivals.

非常感謝您的提問。我們已經觀察到了債務。單純的線上聽歌，已經無法滿足音樂愛好者對音樂相關娛樂的心態。他們基本上會越來越追求體驗現場音樂會和音樂節所帶來的現場氛圍和樂趣。

In addition, we are also seeing that fans also want to show the support to the idols through purchasing official merchandise as well. So by attending off the live shows, fans gain a more diverse and in-depth understanding of the artists, which in turn strengthens their (inaudible) for the artists and encourage more songs listening on our platform as well. So it's going to create a positive cycle for music content consumption, which benefits all parties.

此外，我們也看到粉絲們也希望透過購買官方商品來表達對偶像的支持。因此，透過參與現場表演，粉絲可以對藝術家獲得更加多樣化和深入的了解，這反過來又增強了他們對藝術家的（聽不清楚）並鼓勵他們在我們的平台上收聽更多歌曲。因此這將為音樂內容消費創造一個良性循環，使各方受益。

So over the last two years, I think the music performance industry in China has experienced a robust growth and the willingness of users to spend on such events has surged dramatically with tickets for many top-tier artists concerts and music festival selling out in seconds. We believe that the music live shows business in China will continue to have a strong performance. And the overall market size and ticket price will remain relatively stable in 2025.

因此，我認為在過去的兩年裡，中國的音樂表演行業經歷了強勁的增長，用戶在這種活動上的消費意願急劇上升，許多頂級藝術家的音樂會和音樂節的門票在幾秒鐘內就銷售一空。我們相信，中國的音樂現場表演業務將繼續表現強勁。2025年整體市場規模和票價將維持相對穩定。

But however, I think as more and more live shows are being held, users expectations for the quality of these shows have also increased. So the industry has now entered a phase where only the strongest survive, and the weaker are left behind. So TME is committed to team up with the industry-leading partners to organize high-quality live performance shows for our users.

不過我認為隨著直播節目越來越多，用戶對於節目品質的期望也會越來越高。因此，該行業現已進入強者為王、弱者被淘汰的階段。因此TME致力於聯合業界領先的合作夥伴，為我們的用戶舉辦高品質的現場表演節目。

UBS, Wei Xiong.

瑞銀，熊偉。

(interpreted) My question is regarding our strategy around AI in 2025. Are there any new products or features that we plan to launch for the new year to drive better user experience? And also, how should we think about the financial implication of our AI strategy -- on one hand, could we see some help from AI in terms of revenue or margins? And on the other hand, how should we think about maybe the increasing investment around AI for this year?

(翻譯)我的問題是關於我們 2025 年的人工智慧策略。我們計劃在新的一年推出什麼新產品或新功能來提供更好的使用者體驗？此外，我們該如何看待人工智慧策略的財務影響——一方面，我們能否從人工智慧中獲得收入或利潤的幫助？另一方面，我們該如何看待今年圍繞人工智慧的投資增加？

(interpreted) As I have already mentioned, we won't invest too much on the large language model, and we're going to use (inaudible) Tencent and continue to work with a large language model. But it is worth mentioning that we are a tax-driven company. So we do hope that large leverage model capacity could be a part of our product portfolio.

(翻譯)正如我已經提到的，我們不會在大型語言模型上投入太多，我們將使用（聽不清楚）騰訊並繼續使用大型語言模型。但值得一提的是，我們是一家由稅收驅動的公司。因此，我們確實希望大槓桿模型容量能夠成為我們產品組合的一部分。

Well, recent notable change, we say is that we're probably among the Tencent ecosystem to first adopt the DeepSeek into our product. And from the actual practice, we can see that in QQ Music, we do have the AI-empowered system, who can offer the users more interactions. And recently, we also leverage is to understand in the music listening history of the users and then to summarize those history and providing a better interest interactions with the user.

嗯，最近值得注意的變化是，我們可能是騰訊生態系統中第一個將 DeepSeek 引入我們產品的公司之一。而且從實際的實踐中我們可以看到，在QQ音樂中，我們確實有AI賦能的系統，可以提供使用者更多的互動。最近，我們也利用這一點來了解用戶的音樂收聽歷史，然後總結這些歷史，並與用戶提供更好的興趣互動。

Besides DeepSeek, I think for the last meeting, we already mentioned about our AI [Suncover] feature, which allow the users to use their own voice to see the popular songs, which also be commercialized with very good feedback. In the near future, I think we're going to continue to leverage the capacity and the strength from the large language model, especially on the song quality and an effect.

除了DeepSeek，我想在上次會議中我們已經提到了我們的AI [Suncover]功能，該功能允許用戶使用自己的聲音來查看流行歌曲，該功能也可以商業化並獲得非常好的反饋。在不久的將來，我認為我們將繼續利用大型語言模型的能力和優勢，特別是在歌曲品質和效果方面。

For example, regarding the sound quality, our audio 3D has already been approved with great popularity in the industry. At the same time, we also leverage large language model to further improve our tax to audio technology. It's already the leading technology in our industry. And recently, we also have carding edge technology to help to build the music blogger and which is also performing very well regarding the user retention.

例如在音質方面，我們的音訊3D已經獲得業界的一致好評。同時，我們也利用大型語言模型進一步完善我們的稅務音訊技術。這已經是我們領先業界的技術了。最近，我們也利用Carding Edge技術來幫助打造音樂博客，在用戶保留方面也表現得非常出色。

So we make full use of Tencent investment in the large language model, where at the same time, you know that for large language model influence, it actually be quite consuming the computing power. So we actually made many manpower investment in accelerating the influence of the large language model. But still, we have a controllable cost in this regard. But if we identify some new applications, we'll still continue to invest in (inaudible) for the manpower for the large language model, the facilities or the R&D, we will continue to improve our investments.

所以我們充分利用騰訊在大型語言模型上的投入，同時你知道對於大型語言模型的影響力，它其實是相當消耗運算能力的。所以我們其實投入了大量的人力來加速大型語言模式的影響力。但總的來說，這方面的成本還是可以控制的。但如果我們發現了一些新的應用，我們仍將繼續對大型語言模型的人力、設施或研發進行投資（聽不清楚），我們將繼續增加投資。

JPMorgan, Alex Yao.

摩根大通，Alex Yao。

(interpreted) I have a question with regard to the sequential revenue growth for social entertainment. This item has been on sequential declining trend for many, many years. And this is actually the first time I think since the past two, three years that we actually see a sequential improvement. Could you elaborate the reason behind the sequential growth for social entertainment revenue. Is it because we think now accounts for a majority of the segment revenues? So we think we'll increasingly represent the social entertainment revenue growth outlook?

(翻譯) 我有一個關於社交娛樂連續收入成長的問題。該產品多年來一直呈現連續下降趨勢。我認為，這實際上是過去兩三年來我們第一次看到連續的改善。您能解釋一下社交娛樂收入持續成長的原因嗎？是不是因為我們認為現在佔據了該部門收入的大部分？那麼我們認為我們將越來越多地代表社交娛樂收入成長前景嗎？

Or is it because everything has stabilized such that it's showing a bit of seasonality trend, i.e., the year-end event leads to stronger monetization. Any color would be helpful.

或者是因為一切都已經穩定下來，呈現出一點季節性趨勢，即年底活動帶來更強勁的貨幣化。任何顏色都會有幫助。

(interpreted) And since you know our business pretty well. Yes, indeed, by the end of this year, we do have some celebration. But besides this factor -- and you can see that we actually benefited more from WeSing rather than Kugou.

（翻譯）而且您非常了解我們的業務。是的，今年年底我們確實有一些慶祝活動。但除了這個因素之外——你可以看到，我們實際上從全民K歌中受益比從酷狗中受益更多。

I have to say that those factors is actually fading away compared with the past few years. A key growth driver is because starting from July and August, we have a more stringent compliance. By then, we are at a low quarter. But starting from Q4 last year, we do notice something that is on Kugou streaming, we have a new interactive feature. That interactive feature actually showcased the performance exceeding our expectations.

我必須說，與過去幾年相比，這些因素實際上正在消失。一個關鍵的成長動力是因為從七月和八月開始，我們的合規要求更加嚴格。到那時，我們就處於低谷了。但從去年第四季開始，我們確實注意到酷狗串流媒體有了新的互動功能。該交互功能實際上展示了超出我們預期的性能。

It's a feature of the collection just like the store diamond tower. And we also take the social trending regarding (inaudible) as well as (inaudible). So we do believe such collection feature in the near future will continue to drive the live streaming business growth. But I have to reply that for WeSing indeed, it plays a very important role now, especially the size continue to be stabilized.

它就像商店的鑽石塔一樣，是該系列的特色。我們也關注了（聽不清楚）的社會趨勢，以及（聽不清楚）。因此，我們確實相信，在不久的將來，這種收集功能將繼續推動直播業務的成長。但我必須回答的是，對於全民K歌來說，它現在確實扮演著非常重要的角色，尤其是規模不斷穩定下來。

But at the same time, for WeSing and we also have new futures such as the net earnings, it also registered a very good result. And the VIP membership size continue to see a very healthy growth. At the same time, we also have the song room and video live streaming and the business continued to be stabilized. So that's the key reason why we have a good growth momentum in Q4 last year.

但同時，對於全民K歌來說，我們也有新的未來，像是淨利潤，也取得了非常好的成績。VIP會員規模持續保持非常健康的成長。同時，我們還有歌房和視訊直播，業務持續穩定。這就是我們去年第四季實現良好成長勢頭的關鍵原因。

Look into 2025, according to our overall judgment regarding the social entertainment business, it's going to be stabilized. But still likely to have some downward trending because we do face many changes for this business. As I have already mentioned, what we're trying to do is to roll out new innovations on WeSing and on Kugou to complement on the possible downward trending.

展望2025年，我們對社交娛樂業務的整體判斷是會趨於穩定。但仍可能出現一些下降趨勢，因為我們確實面臨這項業務的許多變化。正如我已經提到的，我們正在嘗試在全民K歌和酷狗上推出新的創新，以彌補可能出現的下滑趨勢。

CICC, Xueqing.

中金公司，雪晴。

(interpreted) My question about capital allocation. The company has announced a cash dividend and a new run of share repurchase this quarter. So what's our plan for capital allocation, both on dividends and shareholder returns? How should we expect to payout ratio in the future?

（解釋）我的問題是關於資本配置的。該公司本季宣布派發現金股息並進行新一輪股票回購。那麼，我們對股利和股東回報的資本配置計畫是什麼？我們該如何預期未來的派息率？

(interpreted) Our company business continued to progress healthily, and we are also accompanied with healthy cash flow. So indeed, how we're going to use the cash flow would be one of our work priorities. So on one side, we're going to find good opportunities at the best timing to invest the future driven opportunities. For example, the content and our technologies and International business those elements are delivering sustainable growth for our overall business.

(翻譯) 我們公司的業務繼續健康地發展，同時也伴隨著健康的現金流。因此，如何使用現金流確實是我們的工作重點之一。因此，一方面，我們將在最佳時機尋找良好的機會來投資未來驅動的機會。例如，內容、技術和國際業務這些要素正在為我們的整體業務帶來永續成長。

Where on the other side, we are going to greatly value the return to the shareholders. We're going to evaluate how can we create more value to the shareholders, including our share repurchase plan and the dividend plan. So looking to our track record, we have already completed two share repurchase programs, and we have already honored our commitment as been promised to the market.

另一方面，我們將非常重視股東的回報。我們將評估如何為股東創造更多價值，包括我們的股票回購計畫和股利計畫。因此，從我們的過往記錄來看，我們已經完成了兩項股票回購計劃，並且已經兌現了對市場的承諾。

So based upon our confidence into the company's future operations, we are also going to continue to have the share repurchase plan. So that's the reason we also announced a new share repurchase plan with a term of two years and a total value at USD1 billion.

因此，基於我們對公司未來營運的信心，我們也將繼續實施股票回購計畫。因此，我們也宣布了一項為期兩年、總價值 10 億美元的新股票回購計畫。

Regarding the dividend or the payout, and we actually started last year in the initial or the first in (inaudible) dividend to our shareholders to pay back to the support and care from the shareholders to us. As we continue to grow our operating profit, as you may notice from our announcement, we're also going to have a new dividend payout plan for the new year.

關於股息或分紅，實際上我們從去年就開始向股東派發首期或第一期股息，以回饋股東對我們的支持和關懷。隨著我們的營業利潤不斷增長，您可能從我們的公告中註意到，我們還將制定新的年度股息支付計劃。

From the absolute value perspective compared with the previous year, there is a significant improvement. So according to our operation and our confidence for our future business, we will continue to pay back to the shareholders and thank you for your long-term support and care.

從絕對值來看與上年相比有明顯提升。所以根據我們的經營狀況，以及對未來業務的信心，我們會繼續回報股東，感謝大家長期以來的支持與關懷。

Okay. Thank you, Shirley, and thank you, everyone, for joining us today. If you have any further questions, please feel free to contact our team. And this concludes today's call and thank you so much and look forward to speaking next quarter. Thank you and bye.

好的。謝謝雪莉，也謝謝大家今天的參與。如果您還有任何其他問題，請隨時聯絡我們的團隊。今天的電話會議到此結束，非常感謝，期待下個季度的通話。謝謝你，再見。

Thank you so much. Bye-bye.

太感謝了。再見。

Thank you. Bye-bye.

謝謝。再見。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。