Tencent Music Entertainment Group (TME) 2025 Q1 法說會逐字稿

Good evening, good morning, and welcome to Tencent Music Entertainment Group's first-quarter 2025 earnings conference call. I am Millicent T., 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2025年第一季財報電話會議。我是 IR 主管 Millicent T.。我們今天稍早在美國市場開盤前公佈了季度財務業績。收益報告現已在我們的 IR 網站和新聞專線服務上發布。

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 company strategies and business 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，他將概述我們的公司策略和業務最新情況。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表現。

Before we continue, I refer you to the Safe Harbor statement in our earnings release, which applies to this call, as we'll make forward-looking statements. Please note that we discuss non-IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under IFRS in our earnings release and filings with the SEC. All participants are muted at this time. After management's remarks, there will be a Q&A session. I'm pleased to be advised that today's call will be -- is being recorded.

在我們繼續之前，請參閱我們收益報告中適用於本次電話會議的安全港聲明，因為我們將做出前瞻性陳述。請注意，我們今天討論的是非國際財務報告準則 (IFRS) 指標，這些指標在我們的收益報告和向美國證券交易委員會 (SEC) 提交的文件中進行了更詳細的解釋，並與根據國際財務報告準則報告的最具可比性的指標進行了協調。所有參與者此時均被靜音。管理層發言後，將進行問答環節。我很高興地獲悉，今天的電話會議將會被錄音。

With that, I'm very pleased to turn the call over to Kar Shun, Executive Chairman of TME. Kar Shun?

我很高興將電話轉給 TME 執行主席 Kar Shun。家順？

Thank you, Millicent. Welcome. Hello, everyone, and thank you for joining our call today. We kick off 2025 with a strong first-quarter performance, demonstrating robust topline growth and stronger profitability. This underscores the successful execution of our high-quality growth strategy, with the sound foundations we have built, a thriving music ecosystem and healthy financial position, we are well-equipped to navigate global uncertainties with confidence.

謝謝你，米莉森特。歡迎。大家好，感謝您今天參加我們的電話會議。我們以強勁的第一季業績開啟了 2025 年，展現了強勁的營收成長和更強的獲利能力。這凸顯了我們高品質成長策略的成功執行，憑藉我們建立的良好基礎、蓬勃發展的音樂生態系統和健康的財務狀況，我們完全有能力滿懷信心地應對全球不確定性。

As music becomes more accessible and personalized, we see user preferences becoming increasingly diverse. Our platform is uniquely positioned to inspire deeper and broader music consumption through enriching our ecosystem and expanding suite of services.

隨著音樂變得越來越容易取得和個人化，我們看到用戶的偏好變得越來越多樣化。我們的平台具有獨特的優勢，可以透過豐富我們的生態系統和擴展服務套件來激發更深層、更廣泛的音樂消費。

Let me share some of the key highlights. First, we strengthened our partnerships with record labels to further enrich our classic music library. Notably, we renewed multiyear contracts with Sony Music Entertainment, bringing 360 Reality Audio sound privileges to SVIP members. We also expanded collaborations with Emperor Entertainment Group and Rock Records, enhancing the listening experience with immersive Dolby Atmos sound.

讓我分享一些主要亮點。首先，我們加強了與唱片公司的合作關係，進一步豐富我們的古典音樂庫。值得注意的是，我們與索尼音樂娛樂公司續簽了多年合同，為 SVIP 會員帶來 360 Reality Audio 音效特權。我們也擴大了與英皇娛樂集團和滾石唱片的合作，透過沉浸式杜比全景聲增強聆聽體驗。

Also, we partnered with Dream Music Group, (spoken in foreign language), to further broaden our selection of popular music rap, which has growing engagement and positive feedback from our users. Meanwhile, our self- and co-producer proprietary content is gaining increasing traction among music fans, offering a differentiated user experience that sets us apart from other music platforms.

此外，我們也與 Dream Music Group（外語）合作，進一步擴大流行音樂饒舌的選擇範圍，使用者的參與度和回饋都越來越正面。同時，我們自主製作和共同製作的專有內容在音樂迷中越來越受歡迎，提供了有別於其他音樂平台的差異化使用者體驗。

As for some highlights, in the first quarter, we partnered with CCTV News to produce To Time, (spoken in foreign language), for Zhou Shen, which ranked number 1 on the Kugou Mainland Chart and number 4 on the QQ Music Mainland Chart. We also produced One Thought to Eternity, (spoken in foreign language), the theme song for the popular Tencent's game CrossFire, (spoken in foreign language), which quickly topped multiple charts and resonated with both music lovers and gamers.

亮點方面，第一季我們與中央電視台新聞聯播為週深製作了歌曲《致青春》（外語版），該歌曲在酷狗內地榜單上排名第一，在QQ音樂內地榜單上排名第四。我們也製作了騰訊熱門遊戲《穿越火線》（外語版）的主題曲《一念永恆》（外語版），該曲迅速登上多個排行榜榜首，引起音樂愛好者和遊戲玩家的共鳴。

Second, through our insights on content and user-evolving preferences, we deepened and we regulated content consumption across different genres. While Chinese songs remained the mainstream choice, we are seeing increasingly popularity of Korean, English, and Japanese tracks. In this regard, we renewed the contracts with top South Korean labels, Starship Entertainment and YG Entertainment, maintaining our leadership in Korean content while also launching merchandise collaborations such as collectible star cast, our extended partnership with Japan's top ACG label KADOKAWA Corporation, added thousands of tracks, including popular anime theme songs, further expanding genre coverage for the fans.

其次，透過對內容和用戶不斷變化的偏好的洞察，我們深化並規範了不同類型的內容消費。雖然中文歌曲仍然是主流選擇，但我們看到韓語、英語和日語歌曲越來越受歡迎。在此方面，我們與韓國頂級唱片公司Starship Entertainment和YG Entertainment續簽了合約，保持在韓國內容領域的領先地位，同時還推出了可收藏明星陣容等商品合作，我們與日本頂級ACG唱片公司KADOKAWA Corporation延長了合作夥伴關係，增加了數千首曲目，包括流行的動漫主題曲，進一步擴大了粉絲的音樂類型覆蓋範圍。

Third, we fulfilled the users' demand for collectibles and providing them new ways to express their passion and appreciation of artists. Recent highlights included the 10-day head-start presale of Beyond Utopia, (spoken in foreign language) by Teens in Times, (spoken in foreign language), which rose to number 1 on the 2025 physical album bestseller chart and number 2 on the all-time chart during this period.

第三，我們滿足了用戶對收藏品的需求，並為他們表達對藝術家的熱情和欣賞提供了新的方式。最近的亮點包括 Teens in Times（外語版）預售 10 天的《超越烏托邦》（外語版），在此期間，該專輯在 2025 年實體專輯暢銷榜上排名第一，在歷史榜上排名第二。

Another example is the physical album producer for Silence Wang, (spoken in foreign language), One Hundred Thousand Volts, (spoken in foreign language), which quickly became a favorite among his dedicated fans. We also collaborated with K-pop icon G-Dragon to be selling official light sticks and other products in Mainland China. For fans who purchased his digital albums, we offered the privilege to buy China-limited special edition merchandise, which achieved an impressive sales performance.

再例如，王沉默（外語）的實體專輯製作人《十萬伏特》（外語），很快就得到了他忠實粉絲的喜愛。我們也與韓國流行音樂偶像 G-Dragon 合作，在中國大陸銷售官方螢光棒和其他產品。對於購買其數位專輯的粉絲，我們提供了購買中國限量版特別商品的特權，並取得了令人印象深刻的銷售業績。

Fourth, we offered the user more engaging and interactive music experience, both online and offline. In the first quarter, we staged nearly 40 well-known artists and groups, including JC-T (spoken in foreign language), Roy Wang (spoken in foreign language), Silence Wang (spoken in foreign language) and LEGEND OF PHOENIX (spoken in foreign language) in our annual MUSIC FOR PASSION (spoken in foreign language) event in Chengdu, attracting tens of thousands of passionate fans.

第四，我們為使用者提供更具吸引力和互動性的線上和線下音樂體驗。第一季度，我們在成都舉辦的年度音樂激情盛會——「音樂激情」邀請了JC-T、王源、Silence Wang、鳳凰傳奇等近40位知名藝人和團體，吸引了數萬名熱情歌迷到場。

We debuted aespa's first-ever exhibition and BABYMONSTER's pop-up store in Mainland China, offering fans limited collectables, interactive displays, and behind-the-scenes content to deepen fan connections with the artists. Online, we invited artists such as XIN LIU (spoken in foreign language), Sean Tang (spoken in foreign language), Yaoyuan (spoken in foreign language) from SHI GE QIN TIAN to engage directly with fans in the common sections, sparkling waves of enthusiasm among their fans, communities.

我們在中國大陸首次舉辦了aespa的展覽和BABYMONSTER的快閃店，為粉絲提供限量收藏品、互動展示和幕後內容，以加深粉絲與藝術家的聯繫。線上，我們邀請了十個秦天的劉心（外語）、唐澇（外語）、遙遠（外語）等藝人在共同版塊與粉絲直接互動，在粉絲、社區中掀起熱烈的波瀾。

Before I conclude, I also want to briefly touch on our ESG progress. In April, we released our 2024 ESG report to offer stakeholders enhanced transparencies and insights into our operations. The report details our practices and achievements in key areas, including intellectual property protection, user privacy and data security, product inclusion and accessibility, and the fostering of diverse music communities.

在結束之前，我還想簡單談談我們的 ESG 進展。今年 4 月，我們發布了 2024 年 ESG 報告，為利害關係人提供更透明的營運資訊和更深入的洞察。報告詳細介紹了我們在智慧財產權保護、使用者隱私和資料安全、產品包容性和可訪問性、以及培育多元化音樂社群等關鍵領域的實踐和成就。

As we continue to unlock the potential of music and technology, we remain committed to advancing sustainable growth and creating social value. In summary, our solid start to the year is a testament to the strength of our comprehensive content ecosystem and our operational excellence. These core capabilities, together with our strategic focus, ensure that we will remain well positioned for sustainable growth in 2025 and into the future.

隨著我們不斷釋放音樂和技術的潛力，我們始終致力於推動永續成長和創造社會價值。總而言之，我們今年的良好開局證明了我們全面的內容生態系統的實力和卓越的運作。這些核心能力加上我們的策略重點，確保我們在 2025 年及未來保持良好的永續成長動能。

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

現在，我想將電話轉給羅斯，以了解有關我們整體平台開發的更多細節。羅斯，請繼續。謝謝。

Thank you, Kar Shun. Hello, everyone. Our consistent focus on high-quality content and innovative product offerings has enabled us to build a dynamic music ecosystem that meets a wide range of user preferences. As a result, we have seen certain enhancement in user engagement illustrated by year-over-year growth in both paying user base and ARPPU in the first quarter. This positive trend was further supported by continued strength in SVIP adoption, reflecting the increase in recognition and engagement of our valued members.

謝謝你，嘉順。大家好。我們始終專注於高品質的內容和創新的產品，這使我們能夠建立一個滿足廣泛用戶偏好的動態音樂生態系統。因此，我們看到用戶參與度提高，第一季付費用戶群和 ARPPU 均較去年同期成長。SVIP 採用率的持續成長進一步支持了這一正面趨勢，反映出我們尊貴會員的認可度和參與度不斷提高。

There are some highlights to share. First, our premium sound quality and audio effect offerings remain our key attraction for SVIP members, penetrating about 15% of our SVIP user base. To illustrate, Kugou Music introduced the industry-first Viper External Amplification Enhancement Sound Effect, (spoken in foreign language), which intelligently optimizes sound depth and clarity when using external speakers. We also launched our dedicated audio effects for AirPods, enabling users to enjoy the advanced audio performance of the new models without upgrading devices.

有一些亮點值得分享。首先，我們的優質音質和音效產品仍然是吸引 SVIP 會員的主要因素，佔了 SVIP 用戶群的 15% 左右。例如，酷狗音樂推出了業界首創的蝰蛇外放增強音效，可在使用外接揚聲器時智慧優化聲音的深度和清晰度。我們也為AirPods推出了專屬音效，讓用戶無需升級設備即可享受新機型的先進音訊效能。

Second, a range of unique perks have proven effective in driving SVIP conversions, including unique album discounts, special badges, early access to merchandise and live events. As an example, at our annual MUSIC FOR PASSION event, SVIP members enjoyed special privileges such as priority ticket purchase. Moreover, those who bought tickets through this channel were also provided with exclusive services such as reception and transportation.

其次，一系列獨特的福利已被證明能有效推動 SVIP 轉化，包括獨特的專輯折扣、特殊徽章、早期獲得商品和現場活動。例如，在我們一年一度的「熱情音樂」活動中，SVIP 會員享有優先購票等特殊權利。此外，透過此管道購票的觀眾還可享有接待、交通等專屬服務。

We also helped Fiona Sit (spoken in foreign language) stage their first 10,000 stage conference hall in Mainland China, offering SVIPs early ticket access and fan meeting and great opportunities. Additionally, we entranced our system, enabling SVIPs to unlock expanding rewards, deepening their sense of identity and the community.

我們也幫助薛凱琪（外語）在中國大陸打造了首個萬人舞台發表會廳，為SVIP提供提前購票、粉絲見面會等絕佳機會。此外，我們還改進了我們的系統，使 SVIP 能夠解鎖越來越多的獎勵，加深他們的身份認同感和社區意識。

Third, long-form audio content, particularly top IPs, contributed to boosting SVIP retention. In the first quarter, we created the audio drama, The Grave Robbers' Chronicles, (spoken in foreign language) and co-developed it with original author, Nanpai Sanshu, star voice actors and top-tier producers. Benefiting from interactive activities such as live streaming with author and in-character voice commentary by the leading voice actor. It quickly gained popularity, surpassing tens of millions of streams in just 14 days.

第三，長篇音訊內容，特別是頂級IP，有助於提升SVIP的留存率。第一季度，我們創作了廣播劇《盜墓筆記》（外文版），並與原作者南派三叔、明星聲優、頂級製作人共同開發。受益於與作者的現場直播和主要配音演員的角色配音評論等互動活動。該影片迅速走紅，僅用 14 天時間播放量就突破數千萬。

On technology, we continued to use AI to elevate user engagement. One example was introducing an interactive commentary feature that transforms music chart into conversations, enhancing fan immersion. User can also personalize music effects switching between different vocals and instruments with one single click. In parallel, we adopted the DeepSeek LLM to help evaluate content quality and improve recommendation precision with user preferences.

在技​​術方面，我們持續使用人工智慧來提升用戶參與度。其中一個例子是引入互動評論功能，將音樂排行榜轉變為對話，增強粉絲的沉浸感。用戶還可以透過點擊來個性化在不同的人聲和樂器之間切換的音樂效果。同時，我們採用了 DeepSeek LLM 來幫助評估內容品質並根據使用者偏好提高推薦精度。

On the non-subscription side, advertising remains our key growth driver and continues to deliver solid year-over-year growth across the board, thanks to diversifying ad formats. In particular, our innovative ad-supported mode grew from strength to strength in the past quarter. We have also introduced a variety of interactive tasks for both paid and unpaid users, which saw an upward trend in engagement and adoption.

在非訂閱方面，廣告仍然是我們的主要成長動力，由於廣告形式的多樣化，廣告繼續全面實現穩步的同比增長。特別是，我們創新的廣告支援模式在過去一個季度不斷發展壯大。我們也為付費和非付費用戶推出了各種互動任務，參與度和採用率呈上升趨勢。

Such positive trends provided us further confidence to continue to grow our advertising business as a whole, unlocking more potential in the future. Looking ahead, we remain committed to enhance our competitiveness and pioneering new ways to inspire deeper and broader music engagement.

這些積極的趨勢使我們更有信心繼續發展我們的整個廣告業務，並在未來釋放更多潛力。展望未來，我們將持續致力於增強競爭力，開拓新方式，激發更深層、更廣泛的音樂參與。

With that, I would like to turn the call over to Shirley, our CFO, for a deep dive into our financials.

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 Q1 of 2025, our effective monetization of online music services and operational efficiency management continued to drive robust financial results with strong performance in our musical subscription and advertising business. Revenues continued growth momentum and reached RMB7.4 billion with a 9% year-over-year growth. Online music revenues increased by 16% year over year to RMB5.8 billion.

謝謝你，羅斯，向大家問好。現在讓我來談談我們的財務表現。2025年第一季度，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業績，音樂訂閱和廣告業務表現強勁。營業收入延續成長勢頭，達到人民幣74億元，較去年同期成長9%。線上音樂收入年增16%至58億元。

The increase was mainly driven by strong growth of our music subscription revenues and advertising revenues, supplemented by growth in revenues from artist-released merchandising and off-line performances. Music subscription revenues in Q1 of 2025 reached RMB4.2 billion, representing a 17% increase year over year and a 5% rise sequentially, driven by continued expansion of the SVIP membership program and reduced promotional activity.

這一成長主要得益於我們的音樂訂閱收入和廣告收入的強勁成長，以及藝術家發行商品和線下表演收入的成長。2025年第一季度，音樂訂閱收入達到42億元人民幣，年增17%，季增5%，這得益於SVIP會員計畫的持續擴大和促銷活動的減少。

Monthly ARPPU increased to RMB11.4 this quarter compared with RMB10.6 in Q1 2024. To meet the evolving needs of our users, we keep enriched rights and privileges of our SVIP members such as premium audio content, enhanced sound quality and effects, and early access to artist-related merchandise and live events.

本季每月 ARPPU 增至 11.4 元人民幣，而 2024 年第一季為 10.6 元。為了滿足用戶不斷變化的需求，我們保留了 SVIP 會員的豐富權利和特權，例如優質音訊內容、增強的音質和效果以及提前獲得與藝術家相關的商品和現場活動的權限。

Advertising revenues also achieved strong year-over-year growth, primarily due to the growth in ad-supported model revenues with more interactive features and enriched benefits reboosting the entrance rate for ad-supported model advertising, enhanced the eCPM, and attracted more advertisers. Meanwhile, sponsorship advertising remains attractive to brand advisers. The success of our flagship MUSIC FOR PASSION (spoken in foreign language) event was a great example to evidence this through offline event sponsorships with recent advertiser partnerships while driving ecosystem monetization.

廣告收入也實現了強勁的同比增長，主要由於廣告模式收入的增長，更多的互動功能和豐富的福利重新提升了廣告模式廣告的進入率，提高了eCPM，吸引了更多的廣告主。同時，贊助廣告對品牌顧問仍然具有吸引力。我們的旗艦活動「熱情音樂」（外語演講）的成功就是一個很好的例子，透過與最近的廣告商合作進行線下活動贊助，同時推動生態系統貨幣化，證明了這一點。

In addition to music subscription and advertising, we have also made good progress on artist-related merchandise sales and offline performance. In Q1, we started shipping the physical album of Xiao Zhan released in Q4 2024 and the related revenues were recorded, resulting in a year-over-year revenue increase from artist-related merchandise sales.

除了音樂訂閱和廣告之外，我們在藝人相關商品銷售和線下演出方面也取得了良好的進展。第一季度，我們開始出貨肖戰於2024年第四季發行的實體專輯併入賬，帶動藝人周邊銷售收入年增。

In addition, with the increased opportunities in offline performance market, we have strengthened the partnership within the music industry and successfully hosted concerts featuring renowned artists leading to revenue growth this quarter. Social entertainment services and other revenues declined 12% year over year of RMB1.6 billion. Starting this quarter, we have ceased disclosing operating metrics for social entertainment business on a quarterly basis.

此外，隨著線下演出市場機會的增加，我們加強了與音樂產業的合作夥伴關係，並成功舉辦了知名藝術家的音樂會，帶動本季收入成長。社交娛樂服務及其他收入16億元人民幣，較去年同期下降12%。從本季開始，我們不再按季度揭露社交娛樂業務的營運指標。

As we have shifted our strategic focus to our core music business, which has accounted for a growing dominant portion of our revenue, operating metrics for social entertainment business are no longer considered the key drivers to our growth and prospects. Our gross margin improved to 44.1% and increased 3.2 percentage points year over year, driven by the following key factors.

由於我們將策略重點轉向核心音樂業務，而該業務在我們的收入中所佔比例越來越大，因此社交娛樂業務的營運指標不再被視為我們成長和前景的關鍵驅動力。我們的毛利率提高至44.1%，年增3.2個百分點，主要得益於以下關鍵因素。

First, the strong growth of our subscription revenue, driven by increased monthly ARPPU, and advertising revenues has contributed to the growth of gross margin. Revenues from leasing membership and advertising in social entertainment services has also positively impacted our gross margin. Second, the scaling of our own content further improved our gross margin. Third, for social entertainment services, the decline in revenue sharing fees outpaced the decrease in revenues. Fourth, with years of dedicated efforts and investments, we have established the win-win relationships with labels and artists.

首先，受每月 ARPPU 成長的推動，我們的訂閱收入和廣告收入強勁成長，促進了毛利率的成長。社交娛樂服務中的會員租賃和廣告收入也對我們的毛利率產生了正面影響。其次，我們自有內容的擴展進一步提高了我們的毛利率。第三，對於社群娛樂服務而言，收入分成費用的下降速度超過了收入的下降速度。第四，經過多年的努力與投入，我們與唱片公司、藝人建立了雙贏的關係。

This has enabled us to explore more partnership opportunities and monetization models with them and further improve our cost efficiency. On the operating efficiency side, we have maintained a strict financial discipline and ROI-focused promotional spending management while directing investments towards long-term growth areas.

這使我們能夠與他們探索更多的合作機會和貨幣化模式，並進一步提高我們的成本效率。在營運效率方面，我們維持了嚴格的財務紀律和以投資回報率為重點的促銷支出管理，同時將投資引向長期成長領域。

Operating expenses as a percentage of revenue decreased of 15.5% in Q1 2025 compared with 16.8% in the same period of last year. Our effective tax rate for Q1 2025 was 9.2% compared to 19.9% in the same period of 2024. The lower ETR was primarily due to the impact from gains on the deemed disposal. We accrued withholding tax of RMB118 million in Q1 of 2025.

2025 年第一季度，營業費用佔收入的百分比下降了 15.5%，而去年同期為 16.8%。我們 2025 年第一季的有效稅率為 9.2%，而 2024 年同期為 19.9%。ETR 較低主要是由於視同處置收益的影響。我們在 2025 年第一季提列了預扣稅人民幣 1.18 億元。

In Q1 2025, our net profit was RMB4.4 billion, and the net profit attributable to equity holders of the company was RMB4.3 billion. This quarter, we have received a 2% equity interest in UMG through a distribution-in-kind from associates, which was designated as financial assets at fair value through other comprehensive income and have recognized a gain of RMB2.37 billion on deemed disposal of the associate.

2025年一季度，我們的淨利為44億元人民幣，歸屬於上市公司股東的淨利為43億元。本季度，我們透過聯營公司的實物分配獲得了 UMG 2% 的股權，該股權被指定為以公允價值計量且其變動計入其他綜合收益的金融資產，並在視同處置該聯營公司時確認了人民幣 23.7 億元的收益。

Non-IFRS net profit increased by 23% to RMB2.2 billion, and non-IFRS net profit attributable to equity holders of the company increased by 25% to RMB2.1 billion, respectively. Our diluted earnings per ADS this quarter was RMB2.77 and non-IFRS diluted earnings per ADS was RMB1.37, up by 26% year over year. These results underscored our effect to monetization, enhanced operating efficiency, and the benefit from our share repurchase program.

Non-IFRS淨利年增23%至22億元，Non-IFRS歸屬於上市公司股東淨利年增25%至21億元。本季每股美國存託憑證攤薄收益為2.77元人民幣，非國際財務報告準則每股美國存託憑證攤薄收益為1.37元人民幣，較去年同期成長26%。這些結果凸顯了我們對貨幣化、提高營運效率以及股票回購計畫帶來的好處的影響。

As of March 31, 2025, our combined balance of cash, cash equivalents, term deposits, and short-term deposits were RMB37.7 billion as compared with RMB37.6 billion as of December 31, 2024. This combined balance was also affected by changes in exchange rate of RMB to USD at different balance sheet dates. In March 2025, we cleared a cash dividend of USD0.09 per ordinary share or USD0.18 per ADS for the year ended December 31, 2024, and the cash payment for the dividend of USD275 million was made in April 2025.

截至 2025 年 3 月 31 日，我們的現金、現金等價物、定期存款及短期存款的合併餘額為人民幣 377 億元，而截至 2024 年 12 月 31 日為人民幣 376 億元。此合併餘額也受到不同資產負債表日人民幣對美元匯率變動的影響。2025 年 3 月，我們清算了截至 2024 年 12 月 31 日止年度的每股普通股 0.09 美元或每股美國存託憑證 0.18 美元的現金股息，並於 2025 年 4 月支付了 2.75 億美元的現金股息。

Looking ahead, we will prioritize high-quality growth in our music business by expanding SVIP memberships, growing our advertising business and diversifying our offerings across music value chain. We will continue to invest in original content production, high-quality content, and innovative technologies globally to further improve user engagement, user experience, and strengthen our ecosystem. We remain confident in the healthy growth prospects of the music industry, and we are a partner and are committed to given high-quality investment returns for our shareholders.

展望未來，我們將優先考慮音樂業務的高品質成長，擴大 SVIP 會員資格，發展廣告業務，並在整個音樂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、高品質內容和創新技術，以進一步提高用戶參與度、用戶體驗並加強我們的生態系統。我們對音樂產業的健康發展前景充滿信心，並作為合作夥伴致力於為股東帶來高品質的投資回報。

This concludes our prepared remarks. Operator, we are ready to open the call for questions.

我們的準備好的演講到此結束。接線員，我們已準備好開始回答問題。

(Operator Instructions) Goldman Sachs, Lincoln.

（操作員指示）高盛，林肯。

Thank you, management, for taking my question. Congrats on the very solid first-quarter performance. So can management share a bit more color around the outlook of our top-line profit growth for the next quarter as well as for the full-year 2025?

謝謝管理層回答我的問題。恭喜您第一季的業績非常穩健。那麼管理階層能否就下一季以及 2025 年全年的營收成長前景提供更多說明？

Thank you, Lincoln, for your questions. And actually, we did a good job and achieved a strong result in Q1, which gives us the confidence in the 2025 outlook. With our risk service offerings and also the comparing product experience as well as our long-term commitment in participating in the value chain of the music industry, we expect full-year year-over-year growth rate to accelerate from last year, and we will continue to expand our margin as well.

謝謝林肯的提問。事實上，我們在第一季做得很好，取得了強勁的業績，這讓我們對 2025 年的前景充滿信心。憑藉我們的風險服務產品、比較的產品體驗以及我們參與音樂產業價值鏈的長期承諾，我們預計全年同比增長率將比去年加快，並且我們的利潤率也將繼續擴大。

While the music subscriptions business remain our cornerstone with healthy growth, we continue to lead the way to encourage more music consumptions, which has allowed the users to engage with a wide range of music entertainment services.

雖然音樂訂閱業務仍然是我們健康成長的基石，但我們繼續引領鼓勵更多音樂消費的方式，這使得用戶能夠參與廣泛的音樂娛樂服務。

Our SVIP subscription program continues to inject new energy, and its unique offerings such as the artist merchandise, long-form audio content and concert, et cetera, will further enhance our user engagement and ARPPU expansion. So all these achievements reinforce our confidence in the long-term potential of the music industry and also our commitment to ongoing investment.

我們的 SVIP 訂閱計畫繼續注入新的活力，其獨特的產品（如藝術家商品、長篇音訊內容和音樂會等）將進一步增強我們的用戶參與度和 ARPPU 擴張。因此，所有這些成就都增強了我們對音樂產業長期潛力的信心以及我們對持續投資的承諾。

So in the conclusion, I think for the year 2025, for our subscription businesses, we will continue to deliver high-quality growth driven by both of the subscriber gains and the ARPPU expansion. And for the long subscription businesses, improved advertising performance and product innovation will continue to drive the steady advertising revenue growth, while deeper partnerships with music labels and artists will boost the revenue for merchandise and concerts, et cetera. Thank you.

所以總而言之，我認為在 2025 年，對於我們的訂閱業務，我們將繼續實現高品質的成長，這得益於用戶成長和 ARPPU 擴張。對於長期訂閱業務而言，廣告成效的提升和產品創新將繼續推動廣告收入的穩定成長，而與唱片公司和藝術家更深入的合作將提高商品和音樂會等方面的收入。謝謝。

Citigroup, Alicia.

花旗集團，艾麗西亞。

Thanks for taking my questions. Congrats on the solid results. Questions is on how do management think about the growth opportunity of podcasts in China? Can you also share a little bit detail the current -- your long-form audio user metrics and also revenue contribution?

感謝您回答我的問題。祝賀您取得如此豐碩的成果。問題是管理階層如何看待播客在中國的成長機會？您能否分享一些當前的詳細資訊—您的長篇音訊使用者指標以及收入貢獻？

(interpreted) Thank you very much. Thanks for the question. At least in domestic China market, when talking about podcast, it could be interpreted in narrow sense and broader sense. When interpreting the podcast from the network sense, actually, it's just like the normal podcast we mentioned. It can still be conducted in single-person livestreaming or multi-people dialogue. It is a way to voice once opinion. So it has everything to do with the KOLs.

（翻譯）非常感謝。謝謝你的提問。至少在國內市場，談到播客，可以有狹義和廣義的理解。當我們從網路意義上去解讀播客的時候，其實它就跟我們說的普通播客是一樣的。依然可以單人直播或多人對話的方式進行。這是一種表達意見的方式。所以這與 KOL 息息相關。

So we say that for podcast in the rest of the world, especially in US, it was developing very fast, but still in China, its coverage is quite limited but still maintained some growth. So we continued to keep an eye on podcast business. And for sure, regarding each commercial value, still, there will be some challenge.

因此，我們認為播客在世界其他地區，尤其是美國，發展非常快，但在中國，其覆蓋範圍仍然相當有限，但仍保持著一定的成長。因此我們繼續關注播客業務。當然，對於每個商業價值而言，仍然會存在一些挑戰。

Actually, for our company, we're going to emphasize we prioritize the long-form audio business, just like what has been done by (inaudible), we really would like to continue to advance the long-form audio business.

實際上，對於我們公司而言，我們將強調優先考慮長篇音頻業務，就像（聽不清楚）所做的那樣，我們真的希望繼續推進長篇音頻業務。

Actually, regarding the long-form audio, we believe we continue to grow the user base. At the same time, it can also play a complementary role with our existing subscriber base. And more importantly, regarding the long-form audio business, we are more focused on listening to the books, online literature and children-related content.

實際上，就長音頻而言，我們相信我們的用戶群會繼續擴大。同時，它也能與我們現有的用戶群起到互補的作用。更重要的是，在長音頻業務方面，我們更專注於收聽書籍、網路文學和與兒童相關的內容。

So with our concerted efforts regarding the long-form audio user, no matter for the user base or the subscriber base, we indeed registered a very nice performance, and it has also become a key driver to advance our SVIP business.

所以我們在長音頻用戶方面的共同努力下，無論是用戶群還是訂閱用戶群，確實都取得了非常好的成績，這也成為我們SVIP業務發展的關鍵驅動力。

So in one word, we do believe our musical content and long-form audio is going to play a complementary role to each other. It's also going to help further enhance the quantity and quality of our entire TME content library by providing our user a much better experience, even including the basic user.

總而言之，我們確實相信我們的音樂內容和長篇音訊將發揮相互補充的作用。它還將為我們的用戶（甚至包括基本用戶）提供更好的體驗，從而進一步提高我們整個 TME 內容庫的數量和品質。

Macquarie, Ellie.

麥格理，艾莉。

I just have a question on SVIP progress. Can management share some kind of operating metrics or key KPIs for SVIP? What's the retention that we are seeing for the users that's been converted to the premium tier? And going forward, what would be kind of the ultimate kind of theme for the ARPPU expansion?

我只是對 SVIP 進度有疑問。管理階層能否分享 SVIP 的某些營運指標或關鍵 KPI？我們看到轉換為高級會員的用戶的保留率是多少？那麼展望未來，ARPPU 擴充的最終主題是什麼？

(interpreted) Thank you very much. Thanks for your question. Actually, for the management team, we are quite satisfied with SVIP business progress now. At the same time, we are pleased to see, at least from the content perspective, more labels and more artists and even the live streaming platform, including those ones from overseas market, started to embrace the trend of SVIP.

（翻譯）非常感謝。謝謝你的提問。其實對於管理團隊來說，我們對現在SVIP業務的進展還是比較滿意的。同時，我們也欣喜地看到，至少從內容層面，越來越多的廠牌、更多的藝人，甚至包括海外的直播平台，開始擁抱SVIP這個潮流。

SVIP, as a high-end membership package, not only provide user with diversified music and entertainment experience, it also allowed artists to have access to their fans in multichannels. It also increased opportunity for commercial value monetization.

SVIP作為高階會員套餐，不僅提供使用者多元化的音樂娛樂體驗，也讓藝人能夠多通路接觸粉絲。這也增加了商業價值貨幣化的機會。

So nowadays, you can see for SVIP penetration ratio and ARPPU, all demonstrate very strong growth momentum. We will continue to improve and polish our membership system, where at the same time, we are also going to launch more attractive privilege and tailor-made service to our user. As always, our very effective operational strategy, we believe our SVIP paying users and ARPPU will continue to grow. At least for this quarter, our paying user and ARPPU all demonstrate very good sequential growth.

所以現在你可以看到SVIP滲透率和ARPPU都表現出非常強勁的成長勢頭。我們將繼續改進和完善我們的會員體系，同時，我們也將為用戶推出更具吸引力的特權和量身定制的服務。一如既往，我們的營運策略非常有效，我們相信我們的SVIP付費用戶和ARPPU將會持續成長。至少就本季而言，我們的付費用戶和ARPPU都表現出非常好的環比成長。

Actually, rolling out SVIP business is strategically aligned with our overall strategy. When we launched SVIP, a key reason is because we really want to leverage SVIP to continue to improve the ARPPU of our overall business. So from this perspective, SVIP started to play a driver role in demonstrating great resilience, and the growth is even faster than what we expected.

其實推出SVIP業務，在策略上是和我們的整體策略一致的。我們推出 SVIP 的關鍵原因是我們確實希望利用 SVIP 來繼續提高我們整體業務的 ARPPU。所以從這個角度來說，SVIP開始起到驅動作用，表現出很強的韌性，而且成長速度比我們預期的還要快。

So looking into 2025, and we believe for SVIP business, we still maintain a positive attitude for its future growth, where at the same time, we were also going to increase investment for the high-value membership service, continue to forge in-depth cooperation with labels and artists and continue to improve our product appealing and customer satisfaction.

所以展望2025年，我們相信對於SVIP業務，我們仍然對其未來的成長保持積極的態度，同時，我們也將加大對高價值會員服務的投入，繼續與唱片公司和藝術家建立深入的合作，繼續提高我們的產品吸引力和客戶滿意度。

Morgan Stanley, Liu, Yang.

摩根士丹利，劉，楊。

Thanks for the opportunity. I would like to ask about the ARPPU growth. The 7.5% year-on-year growth looks pretty good. Could management comment on the contribution from Super VIP and also the contribution from the less promotion activities to the overall ARPPU year-on-year growth?

感謝有這個機會。我想問一下ARPPU的成長情況。7.5%的年成長看起來相當不錯。管理階層能否評論超級 VIP 的貢獻以及較少的促銷活動對整體 ARPPU 年成長的貢獻？

(interpreted) Thank you very much. Thanks for the question. Actually, we -- it's not appropriate for us to provide you the breakdowns, but let me just tell you, we are very clear, Q1 of every year will be a season with festivals and holidays, and we indeed continue to optimize our operations in Q1, where at the same time, we also downsized the discount we provided to the market. And from the actual result, it indeed helped to further improve ARPPU.

（翻譯）非常感謝。謝謝你的提問。其實我們不太適合提供大家細分數據，但我告訴大家，我們很清楚，每年的第一季度都是假日的季節，我們在第一季也確實在繼續優化運營，同時我們也減少了給市場的折扣。而從實際結果來看，確實有助於進一步提高ARPPU。

So from the actual results, you can see, as I have already mentioned, we are still expecting the indigenous growth of SVIP business that can play an even bigger driver role to our overall ARPPU, where for the marketing strategy itself, and we have already started to further reduce and continue to improve the ARPPU for our basic members.

所以從實際結果來看，正如我已經提到的，我們仍然期待 SVIP 業務的本土成長，這可以對我們的整體 ARPPU 發揮更大的推動作用，對於行銷策略本身而言，我們已經開始進一步降低並繼續提高基本會員的 ARPPU。

So in one word, we are still going to keep an eye on the feedback from the user and the dynamics of the market because ultimately, what we hope to achieve is to continue to grow the ARPPU while at the same time guarantee the user experience and the subscriber size healthy growth.

所以總而言之，我們還是會關注用戶的回饋和市場的動態，因為最終我們希望實現的是繼續提高ARPPU，同時確保用戶體驗和用戶規模的健康成長。

Alex Yao, JPMorgan.

摩根大通的 Alex Yao。

Thank you, management, for taking my question. And congrats on a solid quarter. So my question is on the non-paying subscribers. So basically, as we shifted towards this high-quality growth strategy will be -- I think at least increasingly de-emphasizing the price-sensitive consumers who often come just for deep discount. And once we cut the discount, these price-sensitive users tend to be just turned out of the membership user base.

謝謝管理層回答我的問題。恭喜本季業績穩健。我的問題是關於非付費用戶。所以基本上，當我們轉向這種高品質的成長策略時——我認為至少會逐漸不再強調那些通常只是為了大幅折扣而來的價格敏感的消費者。一旦我們削減折扣，這些對價格敏感的用戶往往會被排除在會員用戶群之外。

So the question is now we probably need to de-emphasize more of those price-sensitive consumers. What is the monetization strategy on these non-paying users? In the past couple of years, we talked about advertising. So any updates on monetization of these non-paying members on advertising? And then other than advertising, do we have any other strategy or thoughts to monetize these non-paying members?

所以現在的問題是，我們可能需要減少對價格敏感的消費者的關注。針對這些非付費用戶的獲利策略是什麼？在過去的幾年裡，我們談論廣告。那麼，關於這些非付費會員透過廣告獲利有什麼最新消息嗎？那麼除了廣告之外，我們還有其他策略或想法將這些非付費會員貨幣化嗎？

(interpreted) Thank you very much. Thanks for your question. This question is indeed very complex because we do have some measures to those so-called free users or the non-paying users.

（翻譯）非常感謝。謝謝你的提問。這個問題確實很複雜，因為我們對那些所謂的免費用戶或非付費用戶確實有一些措施。

So from our operational perspective, our operational focus still hope to convert those non-paying users into the subscribers. This might demonstrate the great value of the company, and it is also the priority of the company because indeed, by so doing, we will be able to build long-user group and continue to grow our revenue in a sustainable way.

所以從我們的營運角度來說，我們的營運重點還是希望把那些非付費用戶轉化為訂閱用戶。這或許能體現出公司的巨大價值，也是公司的首要任務，因為事實上，透過這樣做，我們將能夠建立長期用戶群，並繼續以可持續的方式增加我們的收入。

So for those non-paying users, still what we're doing now is to leverage incentive-based advertisement. First of all, we may have some great music model, but at the same time, we also have the online earning measures. By the two measures, we will be able to make sure we still retain the non-paying user but be able to have a good advertising revenue from them.

因此，對於那些非付費用戶，我們現在所做的仍然是利用基於激勵的廣告。首先，我們可能有一些很棒的音樂模式，但同時，我們也有在線賺錢措施。透過這兩項措施，我們將能夠確保我們仍然保留非付費用戶，但能夠從他們身上獲得良好的廣告收入。

Where, at the same time, we also see other sources of the revenue related to the fans' economy, for example, like digital album or the fans merchandise or the single download and purchase. These are also ways to help us to monetize over those non-paid users. So generally speaking, for those non-paying users, we do leverage the (inaudible) performance, for example, like concept like merchandise, like the play of the fan's economy, including the advertisement to continue to generate good business opportunities from those non-paying users.

同時，我們也看到與粉絲經濟相關的其他收入來源，例如數位專輯或粉絲商品或單曲下載和購買。這些也是幫助我們從非付費用戶身上獲利的方法。所以一般來說，對於那些非付費用戶，我們確實會利用（聽不清楚）表現，例如像商品這樣的概念，像粉絲經濟這樣的玩法，包括廣告，以繼續從那些非付費用戶那裡創造良好的商機。

UBS, Wei Xiong.

瑞銀，熊偉。

Thank you for taking my question and congrats on the solid results. My question is about margins. So our gross margin continued to expand sequentially this quarter, and management shared different drivers behind that in the prepared remarks. So just wondering, out of these drivers, which ones do we see have higher potential for future to further drive up the upside of gross margin going forward? And do we have a medium-term target for that?

感謝您回答我的問題，並祝賀您取得了堅實的成果。我的問題是關於利潤的。因此，本季我們的毛利率繼續環比擴大，管理層在準備好的評論中分享了背後的不同驅動因素。所以我只是想知道，在這些驅動因素中，我們認為哪些因素在未來有更大的潛力，可以進一步提高未來的毛利率？我們對此有一個中期目標嗎？

And also related to that, considering our efforts in cost discipline, could you please also talk about the plans for OpEx this year? And how should we think about the net margin trend as well?

另外，考慮到我們在成本控制方面的努力，您能否談談今年的營運支出計畫？那我們該如何看待淨利潤趨勢呢？

(interpreted) Thanks for your question. Just now in the prepared remarks, we have already mentioned a few drivers for the ever-improving GP margin. And I think the most important driver is still the growth of the revenue, where, at the same time, we also see the revenue growth from the subscribers and advertising and especially in the growth of the subscribers, the SVIP growth, would likely to be a key driver for our future business improvement.

（翻譯）感謝您的提問。剛才在準備好的發言中，我們已經提到了推動 GP 利潤率不斷提高的幾個因素。我認為最重要的驅動力仍然是收入的成長，同時，我們也看到來自用戶和廣告的收入的成長，特別是用戶的成長，SVIP 的成長，可能會成為我們未來業務改善的關鍵驅動力。

Where at the same time, another very important factor we have to consider is cost initiative. We'll continue to well control the cost, and the cost management methodology is also the key. We continue to adopt ROC in managing our content cost. At the same time, we make sure the cost growth is always lower than the revenue growth.

同時，我們必須考慮的另一個非常重要的因素是成本主動性。我們將繼續做好成本控制，成本管理方法也是關鍵。我們繼續採用 ROC 來管理我們的內容成本。同時，我們確保成本成長始終低於收入成長。

Another factor I have to mention is that we were deeply rooted in the music industry with huge investments we made. So at the same time, we forged a very strong win-win partnership with the IP holder for the copyright owner. So this investment has already generated a very good yield, not only helping us to well control the cost, we will be able to forge a deep bond with labels and artists, and therefore, it can help us to leverage multiple ways of monetization, which will also help to further improve our cost efficiency.

我必須提到的另一個因素是，我們在音樂產業中根基深厚，並投入了巨額資金。因此，同時，我們與智慧財產權持有者為版權所有者建立了非常牢固的雙贏合作夥伴關係。所以這個投資已經產生了非常好的收益，不僅幫助我們很好地控制了成本，而且能夠和唱片公司、藝人建立起深厚的聯繫，從而幫助我們實現多種盈利方式，這也有助於進一步提高我們的成本效率。

So looking into 2025 for the whole year or even the year beyond 2025, I believe the fact has been mentioned in our prepared remarks will continue to play their due roles. In other words, we believe our GP margin will still have room to further grow.

所以展望2025年全年，甚至2025年以後，我相信我們在準備好的發言中提到的事實將繼續發揮其應有的作用。換句話說，我們相信我們的毛利率仍有進一步成長的空間。

Well, for your second question regarding the operating expenses, for the year of 2025 to our clearance sales expense, majority of them will still be made for the acquisition of the new users and promotion of the content. So before, there will be a slight increase in our sales expenses, but its overall growth should be lower than the growth of our entire revenue. Well, for the management expense, it was going to maintain a flat growth. So compared with last year, our net profit and net profit rate will have room for further improvement.

嗯，關於你的第二個問題，關於營運費用，對於 2025 年我們的清倉銷售費用，其中大部分仍將用於獲取新用戶和推廣內容。所以之前我們的銷售費用會稍微有一點成長，但是它的整體成長應該會低於我們整個收入的成長。嗯，對於管理費用來說，它將保持平穩增長。所以跟去年相比，我們的淨利和淨利率還會有進一步提升的空間。

Barclays, Roger.

巴克萊，羅傑。

Congrats on a very solid quarter. So my question is on international opportunities, especially in Southeast Asia. We have a very small footprint there, the music app JOOX, and also, we're going to host G-Dragon, Southeast Asia toward this year. So can management talk about your thoughts on the opportunities in the region? And would that be an area of investment you take a look at this for maybe next year?

恭喜本季業績非常穩健。我的問題是關於國際機遇，特別是東南亞的機會。我們在那裡的足跡很小，有音樂應用 JOOX，此外，今年我們還將在東南亞接待 G-Dragon。那麼管理層能否談談您對該地區機會的看法？這會成為您明年考慮的投資領域嗎？

(interpreted) Thank you very much. Thanks for your question. International market is always a very important part of our overall strategy. At now, our group does have a very strong overall strategy, and the strategy includes the content as well as the platform development. We are going to adopt the same strategy for our international business.

（翻譯）非常感謝。謝謝你的提問。國際市場始終是我們整體策略中非常重要的一部分。目前我們集團確實有一個非常強大的整體策略，這個策略包括內容以及平台開發。我們將對我們的國際業務採取同樣的策略。

Where from the platform perspective, we will continue to advance the construction of our platform, and especially till now, we did a good performance in Southeast Asia market. But besides the product and service improvement, we are also going to build the content ecosystem and continue to engage in the content creation in the overseas market, along with the offline performance opportunities being captured.

從平台角度來說，我們會繼續推動平台的建設，特別是目前我們在東南亞市場表現的很好。但除了產品和服務的提升，我們也將建構內容生態，繼續在海外市場進行內容創作，並把握線下演出的機會。

So on one side, we will continue to invest in our content ecosystem, and which will help to deliver high-quality content to our overseas platform, where at the same time, we also hope that we can engage in the music content and the artist management. And for the past few years, we continued to improve our operational capacity of the platform and also make huge investment on content. We will continue to engage the international market and make continued investment.

所以一方面我們會繼續投入我們的內容生態，這將有助於為我們的海外平台提供優質的內容，同時我們也希望能夠涉足音樂內容和藝人管理。並且在過去幾年中，我們不斷提昇平台的營運能力，並在內容方面進行了巨大的投入。我們將繼續參與國際市場並持續投資。

Mizuho, Fang, Wei.

瑞穗、方、偉.

Thanks for taking my question. Congrats on the good (inaudible). I got one on advertising. So if I look at the non-music segment, right, I recall last quarter, there was some timing impact from offline events, and now this quarter, we see a good acceleration, right? Of course, the macro condition has changed a lot.

感謝您回答我的問題。恭喜你（聽不清楚）。我有一個關於廣告的。因此，如果我看一下非音樂部分，對吧，我記得上個季度，線下活動對時間產生了一些影響，而現在這個季度，我們看到了良好的加速，對吧？當然，宏觀環境已經發生了很大變化。

I was wondering if management can share any thoughts on the outlook for your advertising and also the pipeline for offline events business for the rest of the year. It would be great if you can also comment on some of your initiatives in terms of expanding to, for example, newer advertising verticals and also optimizing your ad bidding system?

我想知道管理層是否可以分享對今年剩餘時間廣告前景以及線下活動業務前景的看法。如果您能就擴展至例如新的廣告垂直領域以及優化廣告競價系統等方面的一些舉措發表評論，那就太好了？

(interpreted) Thank you very much. Thanks for your question. And let me first talk about advertisement, especially online advertising. As I have already mentioned, we do have a wide range of advertising format. For example, we do have the scratch screen advertisement as well as incentive-based advertisement.

（翻譯）非常感謝。謝謝你的提問。首先我想談談廣告，特別是網路廣告。正如我已經提到的，我們確實擁有多種廣告形式。例如，我們確實有刮刮螢幕廣告以及基於激勵的廣告。

In the past one to two years, our advertising revenue does register a very strong YoY growth, it's mainly attributed to our innovative incentive-based advertising business. Well, for the past two to three years, we continue to roll out free to listen to the music business, which registered a very nice achievement.

在過去的一兩年裡，我們的廣告收入確實實現了非常強勁的年成長，這主要歸功於我們創新的激勵廣告業務。嗯，在過去的兩三年裡，我們繼續推出免費收聽音樂的業務，並取得了非常好的成績。

Starting from this year, we also started to launch the online earnings business model. And the online earning business model can help us to access to the larger user base with very strong motivation from the users. So we find out that the online earnings model actually will be able to continue to advance, which will help us to make sure advertising revenue continued to go beyond our expectation.

從今年開始，我們也開始推出網路獲利的商業模式。在線賺錢商業模式可以幫助我們接觸到更大的用戶群，而且用戶的積極性非常高。所以我們發現線上獲利模式實際上將能夠繼續推進，這將有助於我們確保廣告收入繼續超出我們的預期。

Regarding the advertising system, we're still adopting the advertising system from the Tencent Group. No matter from its bidding capacity or from the advertiser expansion or the AI enabling, we do see the Tencent advertising system is making the industrial leading performance, and this can also help us to further grow our advertising-related revenue.

關於廣告體系，我們還是採用騰訊集團的廣告體系。無論是從競價能力，或是從廣告主拓展，或是AI賦能，我們都看到騰訊廣告系統正在取得業界領先的表現，這也有助於我們進一步提升廣告相關收入。

So actually, we also observed the microeconomic feature is looking right. So for the online advertising business, no matter in Q1 of this year or the full year, at least from the operational perspective, we still maintain a very positive attitude on the advertising revenue for the whole year.

因此實際上，我們也觀察到微觀經濟特徵是正確的。所以對於網路廣告業務來說，不管是今年第一季還是全年，至少從營運的角度來說，我們對全年的廣告收入還是保持非常積極的態度。

(interpreted) I'll answer your second part of the question regarding the outline performance, especially the concert. For past two to three years, we do see the offline performance continue to thrive. With a very strong growth momentum for the (inaudible) performance, I think the priority for TME Group is continue to improve the quality of our performance business.

（翻譯）我來回答你關於概要演出，特別是音樂會的問題的第二部分。過去兩三年來，我們確實看到線下業績持續蓬勃發展。由於（聽不清楚）演出的成長勢頭非常強勁，我認為 TME 集團的首要任務是繼續提高演出業務的品質。

For the past two to three years, we are also very pleased to see many of our partners, including the strategic artists we are working with as well as labels and partners, they supported us a lot. We also would like to say thank you to all of them.

這兩三年來，我們也非常高興的看到許多合作夥伴，包括我們合作的戰略藝人，還有廠牌和合作夥伴，都給予了我們很大的支持。我們也要向他們所有人表示感謝。

So at this moment, I think we have a few things that we need to do right and good. And the first one is the tour of our artists, especially, you mentioned in your question, the G-Dragon tour as well as some of the audits we have strategic partnership wins. We hope that we will be able to provide them good support, where at the same time, offering the audience or the fans a good opportunity to appreciate high quality of live performance. But, at the same time, for our indigenous IP event, for example, like QQ MUSIC FOR PASSION, we do hope that we will be able to improve its performance for this year.

因此，目前我認為我們需要做好幾件事。第一個是我們的藝術家巡演，特別是您在問題中提到的 G-Dragon 巡演以及我們贏得戰略合作夥伴關係的一些審計。我們希望能夠為他們提供良好的支持，同時也為觀眾或粉絲提供一個欣賞高品質現場表演的好機會。但同時，對於我們的本土IP活動，例如QQ音樂激情版，我們確實希望今年能夠提升它的表現。

We hope by organizing or help to sponsoring those offline performance, we will be able to provide a comprehensive musical experience to all of our users, where at the same time to play the cards of the SVIP privilege. In that way, we will be able to help to grow the SVIP subscriber base. So ultimately, we hope that the TME overarching strategy with one body two roots will be fully demonstrated. In that way, we will create a greater value to the market and the society as a whole.

我們希望透過組織或贊助這些線下演出，能夠提供所有使用者全方位的音樂體驗，同時發揮SVIP特權的功能。這樣，我們將能夠幫助擴大 SVIP 用戶群。所以最終我們希望TME一體兩根的整體策略能夠充分體現。這樣才能為市場、為整個社會創造更大的價值。

Thank you, Kar Shun, and thank you, everyone, for joining us today. In the interest of time, this concludes today's call. And if you have any further questions, please feel free to contact the IR team. Thanks again and look forward to speaking to you next quarter.

謝謝嘉順，也謝謝大家今天的參與。為了節省時間，今天的電話會議到此結束。如果您還有其他問題，請隨時聯絡 IR 團隊。再次感謝並期待下個季度與您交談。

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。