Tencent Music Entertainment Group (TME) 2025 Q2 法說會逐字稿

Good evening, good morning, and welcome to Tencent Music Entertainment Group's second quarter 2025 earnings conference call. I'm 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年第二季財報電話會議。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 will hear from Mr. Cussion 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 address our financial results before we open the call for questions.

在今天的電話會議中，您將聽到我們執行主席 Cussion Pang 先生和首席執行官 Ross Liang 先生的講話，他們將概述我們的公司策略和業務更新。然後，我們的財務長 Shirley Hu 女士將在我們開始提問之前介紹我們的財務表現。

Before we continue, I refer you to the Safe Harbor Statements in our earnings release, which applies to this call as we make forward-looking statements. Please note that we will 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.

在我們繼續之前，請參閱我們收益報告中的安全港聲明，該聲明適用於本次電話會議，因為我們做出了前瞻性的陳述。請注意，我們今天將討論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 (IFRS) 報告的最具可比性的指標進行了協調。

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

（活動說明）請注意，今天的通話正在錄音。說到這裡，我很高興將電話轉給 TME 執行董事長 Cussion。請坐。

Thank you, Millicent. Hello, everyone, and thank you for joining our call today. We delivered high-quality growth in the second quarter with solid year over year increases in both revenue and profitability. On one hand, our music subscription business remains a core growth driver and continues to gain traction. On the other hand, we are also seeing impressive results from our expanding suite of music-related services.

謝謝你，米莉森特。大家好，感謝您今天參加我們的電話會議。我們在第二季度實現了高品質的成長，收入和獲利能力較去年同期穩定成長。一方面，我們的音樂訂閱業務仍然是核心成長動力，並繼續獲得發展動力。另一方面，我們也看到我們不斷擴展的音樂相關服務套件取得了令人矚目的成果。

Key initiatives like advertising, concerts, and artist merchandise, all achieved rapid growth in the second quarter, and that strong momentum is carrying into the third quarter. By constantly enhancing our content ecosystem, expanding our offerings, and fostering new ways for artist-fans engagement, we are shipping arrivals all in one music service platform.

廣告、音樂會和藝術家商品等關鍵舉措均在第二季度實現了快速增長，並且這種強勁勢頭延續到了第三季度。透過不斷增強我們的內容生態系統、擴大我們的產品範圍以及培育藝術家與粉絲互動的新方式，我們在一個音樂服務平台上提供所有產品。

Now, let me share some of the key highlights on the content business. First, we began cooperating with well-known Korean labels, The Black Label and H Music for the first time. Further strengthened and differentiated our K-pop offerings, we also expanded collaboration with renowned Chinese artist, Wang Feng, offering both of his classics and latest work on our platform. Second, we continue to focus on co-creation and original content production to further enrich and diversifying our content offerings.

現在，讓我分享一下內容業務的一些重點亮點。首先，我們首次與韓國知名唱片公司The Black Label和H Music開始合作。為了進一步加強和區分我們的韓國流行音樂產品，我們還擴大了與中國知名藝術家汪峰的合作，在我們的平台上提供他的經典作品和最新作品。第二，我們繼續專注於共同創作和原創內容製作，以進一步豐富和多樣化我們的內容產品。

From concept, originations, creations to production and promotion, we are actively involved in every stage to build a more dynamic and innovative music ecosystem. A prime example is our recent collaboration with SM Entertainment on NCT's CHENLE's,’ Chinese Special EP, Lucid.

從概念、起源、創作到製作和推廣，我們積極參與每個階段，以建立更具活力和創新的音樂生態系統。一個典型的例子就是我們最近與 SM Entertainment 合作推出 NCT 的 CHENLE 的中文特別 EP《Lucid》。

Our integrated promotions across music festivals, debut concerts and variety shows attract a large audience. 10,000 music lovers participated in a sing-along at the music festival, a variety show. Clips generated over 1 million likes, highlighting the power of the end-to-end industry collaboration across borders and cultural exchange for music. We also worked closely with artists to develop original pieces, like the theme song for the acclaimed film, THE LYCHEE ROAD with Chen Chusheng. This song topped multiple music charts and garnered extensive praise from national media.

音樂節、首秀、綜藝等一體化推廣，吸引了大批觀眾，音樂節、綜藝等節目中萬人一起參與了大合唱。短片獲得了超過 100 萬個贊，彰顯了跨境端到端產業合作和音樂文化交流的力量。我們也與藝術家密切合作，創作原創作品，例如與陳楚生合作創作的備受好評的電影《荔枝路》的主題曲。這首歌曲登上多個音樂排行榜榜首，並獲得了國家媒體的廣泛好評。

Additionally, our strategic partnership with Zhejiang Satellite TV (spoken in foreign language) has further supplemented our music copyright portfolio of popular variety shows such as The Treasured Voice (spoken in foreign language) and Shining Summer (spoken in foreign language) and opened new opportunities for collaboration in content co-creation, musician promotion and more.

此外，我們與浙江衛視（外語版）的策略合作夥伴關係進一步補充了我們熱門綜藝節目《寶貝的聲音》（外語版）、《閃耀的夏天》（外語版）的音樂版權組合，並為內容共同創作、音樂家推廣等方面的合作開闢了新的機會。

We have also shown strong capabilities in staging artists and connect them with the users through other music-related service offerings. These efforts have further energized our ecosystem, boosted user loyalty, and cultivated content creation, altogether, reinforcing our platform unique position in the evolving music industry.

我們還展示了在安排​​藝術家演出以及透過其他與音樂相關的服務將他們與用戶聯繫起來方面的強大能力。這些努力進一步激發了我們的生態系統，提高了用戶忠誠度，並促進了內容創作，鞏固了我們平台在不斷發展的音樂產業中的獨特地位。

A few examples. First, we successfully hosted leading Korean artist, G-DRAGON's first major tour since 2017 in Macau, which attracted over 36,000 attendees to immerse in the cultivative atmosphere, and the event merchandise was quickly sold out. This marked our first large-scale international concert production, significantly pushing our industry reputation.

舉幾個例子。首先，我們成功舉辦了韓國當紅藝人 G-DRAGON 自 2017 年以來首次在澳門舉行的大型巡迴演唱會，吸引了超過 36,000 名觀眾沉浸在充滿歡樂的氛圍中，活動週邊商品也迅速售罄。這是我們首次製作大型國際音樂會，大大提升了我們的行業聲譽。

Following a strong kickoff, we are scheduled to expand the tour into other regions this year. Additionally, we organized a series of stadium concerts for Fiona Sit (spoken in foreign language), TIA RAY (spoken in foreign language), and rapper GAI, helping them to reach a broader, younger audience. Due to the overwhelming demand, we quickly responded and worked with TIA RAY to schedule additional shows to accommodate fan interest.

在強勁開局之後，我們計劃今年將巡演擴展到其他地區。此外，我們也為薛凱琪（外語）、TIA RAY（外語）和饒舌歌手GAI舉辦了一系列體育場音樂會，幫助他們接觸到更廣泛、更年輕的受眾。由於需求龐大，我們迅速做出反應並與 TIA RAY 合作安排額外的演出以滿足粉絲的興趣。

Second, we have become an important partner for staging and creating live performances for emerging talents. In the first half of the year, we leveraged our proprietary IPs, CITY LIVE and BUFF LIVE, to host over 300 off-line shows for nearly 100 Tencent musicians. Our cross-platform promotions also boost a number of works into trending hits, connecting them with a broader audience of music lovers.

第二，我們成為新興人才規劃和創作現場表演的重要夥伴。上半年，我們利用自有IP CITY LIVE、BUFF LIVE，為近百位騰訊音樂人舉辦了超過300場線下演出。我們的跨平台推廣也將許多作品推向了熱門歌曲的行列，讓它們與更廣泛的音樂愛好者群體建立了聯繫。

For instance, after we promoted Xiang Sisi's first, Why Not Wait for the Wind (spoken in foreign language) on soft video platforms. It quickly went viral, sparking a wave of users-generated content on social media and surpassing 20 million streams on our platform.

例如我們在軟影音平台上推廣了第一部向思思的作品《何不等風來》（外文版）。它迅速走紅，在社群媒體上引發了一波用戶生成內容的浪潮，在我們的平台上的流量超過了 2000 萬。

Third, we created more opportunities for music lovers to meet and interact with artists, both online and offline. For example, buyers of Xiao Zhan (spoken in foreign language) physical album, (technical difficulty), could win opportunities to attend his offline signing events. Such privileges not only deepened fans engagement, but also helped drive the album's outstanding performance.

第三，我們為音樂愛好者創造了更多與藝術家見面和互動的機會，包括線上和線下。例如，購買肖戰（外語）實體專輯（技術難度）的買家，可以獲得參加他線下簽書活動的機會。這樣的特權不僅加深了粉絲的參與度，也有助於推動專輯的出色表現。

In late June, we partnered with DAU, a global fan communication platform company, to launch the interactive community bubble on QQ Music. bubble enables users to engage directly with hundreds of K-pop artists from labels such as SM, JYP and CUBE Entertainment, providing artists an avenue to share members-only content. To cater to a wider audience, we also plan to invite some popular Chinese artists to the community, allowing them to foster a deeper and more personal connections with their fans.

6 月底，我們與全球粉絲交流平台公司 DAU 合作，在 QQ 音樂上推出了互動社群泡泡。泡泡使用戶能夠直接與來自 SM、JYP 和 CUBE Entertainment 等廠牌的數百名韓國流行音樂藝術家互動，為藝術家提供分享會員專屬內容的途徑。為了滿足更廣泛的受眾，我們還計劃邀請一些受歡迎的中國藝術家加入社區，讓他們與粉絲建立更深層、更私人的聯繫。

Finally, reflecting our commitment to serving the music industry and supporting its healthy growth, we host the third Wave Music Awards, which was designed to honor the most outstanding Chinese music work of 2024. 15 top tier music creators, including Gu Jianfen, Yee Yeung and (technical difficulty) presented the awards. The chart professionalism earned industry-wide acclaim and endorsement, amassing over 200 million social media views.

最後，為了體現我們服務音樂產業、支持音樂產業健康發展的承諾，我們舉辦第三屆浪潮音樂獎，旨在表彰2024年最傑出的華語音樂作品，由顧建芬、葉楊等15位頂級音樂創作人頒發獎項。該排行榜的專業性贏得了業界的廣泛讚譽和認可，在社交媒體上獲得了超過 2 億的觀看次數。

This quarter, we also cooperated with professional institutions, music labels and artists, leveraging AI technology to unlock the social value and hearing power of music. For example, we launched the Hearing Guizhou project, featuring natural soundscapes to enhance sleep quality.

本季度，我們也與專業機構、唱片公司和藝術家合作，利用AI技術釋放音樂的社會價值和聽覺力量。例如，我們啟動了「聆聽貴州」項目，利用自然聲音景觀來提高睡眠品質。

In summary, our dedication to diversifying music services and delivering well-run music entertainment has set the stage for long-term sustainability growth. With a strong foundation in place, we will continue to enhance our content and platform ecosystem, offer richer experiences, and unlock greater opportunities for both music lovers and stakeholders across the music value chain.

總而言之，我們致力於音樂服務多元化，提供運作良好的音樂娛樂，為長期永續成長奠定了基礎。憑藉堅實的基礎，我們將繼續增強我們的內容和平台生態系統，提供更豐富的體驗，並為音樂愛好者和整個音樂價值鏈的利益相關者創造更多機會。

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, Cussion. Hello, everyone. In the second quarter, our platform demonstrated robust growth, driven by our commitment to continuous product improvement and operational excellence. Online music recorded strong performance, supported by a sustained expansion in both our subscriber base and ARPPU. This positive trajectory was underpinned by our innovations across product features, artist merchandise and artist fan interactions, which has further strengthened our appeal among SVIP members.

謝謝你，Cussion。大家好。在第二季度，我們的平台表現出強勁的成長，這得益於我們致力於持續的產品改進和卓越的營運。線上音樂表現強勁，得益於用戶群和 ARPPU 的持續成長。這一積極的軌跡得益於我們在產品功能、藝術家商品和藝術家粉絲互動方面的創新，這進一步增強了我們在 SVIP 會員中的吸引力。

Overall, user average time spent reached a record high and SVIP subscribers exceeded 15 million, a new milestone that reflects the deep trust and loyalty within our user community. To enhance the SVIP experience, we introduced a range of new and upgraded features during this quarter. Here are some key highlights.

整體而言，用戶平均使用時間創歷史新高，SVIP用戶突破1500萬，這一新的里程碑反映了我們用戶社群的深厚信任和忠誠度。為了增強 SVIP 體驗，我們在本季推出了一系列新的和升級的功能。以下是一些主要亮點。

First, high-quality sound quality remains the most popular SVIP membership benefits. This is effective in fulfilling users' robust demand for more premium and immersive listening experiences. In the second quarter, Kugou Music pioneered VIPER HiFi sound quality and One-Click Audio Enhancement 2.0. By delivering superior audio fidelity and louder speaker volumes, we let users easily transform their smartphones into portable speakers. We also upgraded voice extraction technologies with the industry-first AI Chorus function.

首先，高品質的音質依然是SVIP會員最受歡迎的福利。這有效滿足了使用者對更優質、更沉浸式聆聽體驗的強烈需求。第二季度，酷狗音樂率先推出VIPER HiFi音質和一鍵音訊增強2.0，帶來卓越的音質和更響亮的音量，讓用戶輕鬆將智慧型手機變身為便攜音箱。我們也透過業界首創的 AI Chorus 功能升級了語音擷取技術。

Users can now plug in a live concert seeing a long experience anytime and anywhere without the user first. Second, to further drive SVIP adoption, artist-centric privileges became increasingly effective. Such achievements are powered by our deeper collaborations with labels and artists that unlock a wide range of compelling benefits for our users. Digital albums are a great example. Recently, we premiered JJ Lin (spoken in foreign language) and released a new digital single, Hold Me Close (spoken in foreign language).

用戶現在可以隨時隨地插入現場音樂會，無需用戶先行即可獲得長時間的觀看體驗。其次，為了進一步推動 SVIP 的採用，以藝術家為中心的特權變得越來越有效。這些成就得益於我們與唱片公司和藝術家的更深入合作，為我們的用戶帶來了一系列引人注目的好處。數位專輯就是一個很好的例子。最近，我們首播了林俊傑（外語版），並發布了一首新的數位單曲《Hold Me Close》（用外語說）。

We also launched Jolin Cai's new album Pleasure. By integrating these albums as SVIP sign-up privileges, we significantly boosted SVIP conversions. Another example is priority access to concert tickets for in-demand events.

我們也推出了蔡依林的新專輯《Pleasure》。透過將這些專輯整合為 SVIP 註冊特權，我們顯著提高了 SVIP 轉換率。另一個例子是優先獲得熱門活動的音樂會門票。

This quarter, SVIP users had the opportunities to secure tickets for G-DRAGON and BLACKPINK's concert pass in advanced on our platform, sparking significant buzz among music fans. We also cooperated with both domestic and international artists, including JC-T (spoken in foreign language), Silence Wang (spoken in foreign language) and aespa to release Martha star cards service.

本季度，SVIP用戶有機會在我們的平台上提前獲得G-DRAGON和BLACKPINK演唱會的門票，在音樂迷中引起了極大的轟動。並和JC-T（外語）、Silence Wang（外語）、aespa等國內外藝人合作推出瑪莎星卡服務。

These initiatives successfully met users' growing demand for collectibles. Third, we elevated users' engagement by introducing new ways for artists and fans to connect. For example, beyond launching bubble in May, we partnered with (technical difficulty) Entertainment (spoken in foreign language) to live stream (technical difficulty) in time (spoken in foreign language) and transform projects top (spoken in foreign language) to concerts.

這些措施成功滿足了用戶日益增長的收藏品需求。第三，我們透過為藝術家和粉絲提供新的聯繫方式來提高用戶的參與度。例如，除了在五月推出泡沫之外，我們還與（技術難度）娛樂（外語口語）合作，及時（外語口語）進行直播（技術難度），並將項目頂部（外語口語）轉變為音樂會。

This event gathered over 33 million viewers with SVIP members enjoying dedicated access to solo camera angles, bringing fans even closer to the artists. We also upgraded our virtual fan community (technical difficulty), introducing special avatar outfits and gestures for SVIP members to make online (technical difficulty) more personalized. During the last (technical difficulty) birthday and song releases, we hosted fun team building activities and a live voice call (technical difficulty) by attracting over 100,000 users to this airline page.

這項活動吸引了超過 3,300 萬觀眾，SVIP 會員享有專屬的單人攝影機視角，讓粉絲與藝術家更加親近。我們還升級了我們的虛擬粉絲社群（技術難度），為 SVIP 會員引入了特殊的頭像服裝和手勢，使線上（技術難度）更加個性化。在上次（技術難度）生日和歌曲發布期間，我們舉辦了有趣的團隊建立活動和現場語音通話（技術難度），吸引了超過 100,000 名用戶造訪該航空公司頁面。

Next, as our in-car music service gained recognition from SVIP members, we broadened our alliance with prominent automakers. For instance, this quarter, we formed a comprehensive partnership with Geely and collaborated with Xiaomi on its first SUV, the YU7 model.

接下來，隨著我們的車載音樂服務獲得SVIP會員的認可，我們擴大了與知名汽車製造商的聯盟。例如，本季我們與吉利建立了全面合作夥伴關係，並與小米合作推出了首款SUV車型YU7。

This partnership's integrated Dolby Atmos and premium service sound effects, elevating users' music listening experience. We also built an AI-powered music cabin for Great Wall Motor, offering personalized on-demand features like AI local extraction and filling music playlist to facilitate a more enjoyable journey.

此次合作整合了 Dolby Atmos 和優質服務音效，提升了使用者的音樂聆聽體驗。我們也為長城汽車打造了AI音樂座艙，提供AI本地提取、填充音樂播放清單等個人化點播功能，讓旅程更加愉悅。

Alongside the success of our SVIP offerings, the power of our platform and innovative ad formats led to accelerated advertising growth, both quarter-over-quarter and year over year. In particular, we optimized interactive tasks and enriched redemption benefits, significantly boosting users' engagement and receiving positive feedback from advertisers.

除了我們的 SVIP 產品成功之外，我們平台的強大功能和創新的廣告形式也推動了廣告業務的加速成長，無論是環比成長還是同比成長。其中，我們優化了互動任務，豐富了兌換福利，顯著提升了用戶參與度，並獲得了廣告商的正面回饋。

Lastly, our initial pilot on ad-based membership gained positive momentum. It gives us more room to provide tailored solutions to advertisers and users with various needs. Looking ahead, we see great potential in the music entertainment space and are committed to investing in new initiatives that create lasting value and impact on music creation and consumption.

最後，我們最初的廣告為基礎的會員制試點取得了積極的進展。這為我們提供了更大的空間來為具有各種需求的廣告商和用戶提供量身定制的解決方案。展望未來，我們看到音樂娛樂領域的巨大潛力，並致力於投資能夠為音樂創作和消費創造持久價值和影響力的新舉措。

Along this journey, we will continue to push boundaries, innovate, and enhance user experiences to deliver more premium and immersive experiences to all of our users. With that, I would like to turn the call over to Shirley, our CFO, for a deep dive into our financials.

在此過程中，我們將繼續突破界限、創新並增強用戶體驗，為所有用戶提供更優質、身臨其境的體驗。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 Q2 2025. Our total revenues hit a record high of RMB8.4 billion, up by 18% year over year, successfully overcoming the challenges from adjustments in social entertainment services in recent years. This was driven by continued strong growth in music subscription and advertising services as well as robust growth from artist-related merchandise sales and offline performances. Online music revenues grew 26% year on year to RMB6.9 billion.

謝謝你，羅斯，向大家問好。現在讓我來談談我們 2025 年第二季的財務表現。總收入創歷史新高，達人民幣84億元，年增18%，成功克服了近年來社交娛樂服務調整帶來的挑戰。這是由於音樂訂閱和廣告服務的持續強勁增長以及藝術家相關商品銷售和線下表演的強勁增長所推動的。線上音樂收入較去年同期成長26%至69億元。

Music subscription revenues grew 17% year on year to RMB4.4 billion in Q2 2025, driven by continued expansion in subscriber base and monthly ARPPU. Monthly ARPPU reached RMB11.7 this year compared to RMB10.7 in the same period of last year, primarily driven by expansion in SVIP subscribers and ARPPU.

2025 年第二季度，音樂訂閱收入年增 17%，達到 44 億元，這得益於用戶群和每月 ARPPU 的持續擴大。今年每月ARPPU達到人民幣11.7元，去年同期為人民幣10.7元，主要由於SVIP用戶數和ARPPU的成長。

As discussed earlier, to enhance the SVIP members experience, we continued to broaden and strengthen SVIP benefits, including enhanced sound quality and effects, artist-centric privileges such as free shipping for our merchandise, priority access to concert tickets and artist-related merchandise. These efforts collectively have helped increase our SVIP membership base and achieve higher monthly ARPPU this quarter.

如前所述，為了提升 SVIP 會員體驗，我們繼續擴大和加強 SVIP 福利，包括增強的音質和效果、以藝術家為中心的特權（例如商品免費送貨）、優先獲得音樂會門票和藝術家相關商品。這些努力共同幫助我們擴大了 SVIP 會員基礎，並在本季度實現了更高的每月 ARPPU。

Advertising revenue continued its strong growth trajectory on both year on year and quarter on quarter basis, primarily driven by the following. First, our innovative ad formats such as ad-supported model keep the gaming trajectory and significantly contributed to our advertising revenue growth.

廣告收入年比及季比均維持強勁成長勢頭，主要受以下因素推動。首先，我們創新的廣告形式，如廣告支援模式，保持了遊戲軌跡，並顯著促進了我們的廣告收入成長。

Second, the 618 shopping festival provided a great opportunity to showcase our recent product optimization results, leading to increased number of advertisers, higher interest rates and eCPM. Third, sponsorship advertising also had a strong growth this quarter, which benefit from increased number of offline events and performances.

其次，618購物節為我們展示近期產品優化成果提供了絕佳的機會，從而增加了廣告商數量，提高了利率和eCPM。第三，贊助廣告本季也實現了強勁成長，這得益於線下活動和演出數量的增加。

Additionally, artist-related merchandise sales and offline performance delivered robust results this quarter and further contributed to overall revenue growth in music services. The shipping for the physical album of Xiao Zhan this quarter, together with the offerings of artist-related merchandise, such as Joker Xue's physical albums and G-DRAGON's offshore light sticks significantly enhanced the revenues from artist-related merchandise sales in Q2. Meanwhile, we continued our strategic initiatives in the offline performance market.

此外，本季藝術家相關商品銷售和線下演出業績強勁，進一步促進了音樂服務整體收入的成長。本季肖戰實體專輯的出貨，以及薛之謙實體專輯、G-DRAGON海外螢光棒等藝人周邊的推出，大幅提升了第二季藝人周邊的銷售收入。同時，我們繼續在線下演出市場進行策略性佈局。

This quarter, leading Korean artist, G-DRAGON started his first major tour since 2017, and we successfully hosted his concerts in Macau in Q2 with more locations to come in Q3. We also hosted other high-profile concerts for artists such as (technical difficulty) this quarter.

本季度，韓國當紅藝人 G-DRAGON 開啟了自 2017 年以來的首次大型巡演，我們於第二季度在澳門成功舉辦了他的演唱會，並將於第三季度在更多地點舉辦演唱會。本季我們也為（技術難度）等藝術家舉辦了其他備受矚目的音樂會。

Social entertainment services and other revenues were RMB1.6 billion, down by 9% year on year . The year on year decrease was mainly due to the adjustments to certain live streaming, interactive functions and more stringent compliance procedures progress implemented. Our gross margin rose by 2.4-percentage- points year on year to 44.4%, primarily driven by the following factors.

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9%。。年比下降主要由於部分直播、互動功能的調整以及更嚴格的合規程序的實施所致。我們的毛利率年增2.4個百分點至44.4%，主要受下列因素推動。

First, strong growth in music subscription and advertising revenues, together with improved cost efficiency, thanks to our long-standing win-win relationships with labels and artists and benefit on gross margin challenges. As the market landscape evolves, we successfully lowered our revenue sharing ratio in social entertainment services without materially impacting revenues. Meanwhile, the growth in revenues from app-related merchandise and offline performances, which require higher investment, had offset gross margin increase.

首先，由於我們與唱片公司和藝術家長期建立的雙贏關係以及在毛利率挑戰中獲益，音樂訂閱和廣告收入強勁增長，同時成本效率提高。隨著市場格局的變化，我們成功降低了社交娛樂服務的收入分成比例，而沒有對收入產生實質影響。同時，需要更高投入的應用相關商品和線下演出的收入成長抵消了毛利率的成長。

Moving on to operating expenses, sales, and marketing expenses as a percentage of revenues were 2.6%, down from 2.9% in the same period of last year. General and administrative expenses as a percentage of revenues were 11.1%, down from 3.1% in the same period of last year, reflecting our strong operating efficiency.

談到營運費用，銷售和行銷費用佔收入的百分比為 2.6%，低於去年同期的 2.9%。一般及行政開支佔收入的百分比為 11.1%，低於去年同期的 3.1%，反映了我們強勁的營運效率。

Majority of our sales and marketing spending have been in the category of content promotion and channel spending. We will keep monitoring market conditions and increase spending as needed with financial discipline.

我們的大部分銷售和行銷支出都用於內容推廣和通路支出。我們將繼續監測市場狀況，並在遵守財務紀律的前提下根據需要增加支出。

Our effective tax rate for Q2 2025 was 17.3% compared to 19.4% in the same period of 2024. We accrued withholding income tax of RMB118 million in the second quarter of 2025. In Q2 2025, our net profit increased by 38% to RMB2.5 billion, and net profit attributable to equity holders of the company increased by 43% to RMB2.4 billion. Non-IFRS net profit increased by 33% to RMB2.6 billion, reaching a historical high, and non-IFRS net profit attributable to equity holders of the company increased by 37% to RMB2.6 billion.

我們 2025 年第二季的有效稅率為 17.3%，而 2024 年同期為 19.4%。我們於 2025 年第二季提列預扣所得稅人民幣 1.18 億元。2025年第二季度，我們的淨利成長38%至人民幣25億元，歸屬於公司股東的淨利成長43%至人民幣24億元。Non-IFRS淨利年增33%至26億元，創歷史新高，Non-IFRS歸屬於上市公司股東淨利年增37%至26億元。

Our diluted earnings per ADS this quarter was RMB1.55, up by 45% year over year, and the non-IFRS diluted earnings per ADS was RMB1.66, up by 39% year on year . This result underscores our effective monetization, enhanced the operation efficiency and benefited from our share repurchase program.

本季每股美國存託憑證攤薄收益為人民幣1.55元，較去年同期成長45%；非國際財務報告準則每股美國存託憑證攤薄收益為人民幣1.66元，較去年同期成長39%。。這一結果凸顯了我們有效的貨幣化，提高了營運效率，並受益於我們的股票回購計畫。

As of June 30, 2025, our combined balance of cash, cash equivalents, term deposits and short-term investments were RMB34.9 billion as compared to RMB37.7 billion as of March 31, 2025. This combined balance was also affected by change in exchange rate of RMB to USD (technical difficulty).

截至 2025 年 6 月 30 日，我們的現金、現金等價物、定期存款及短期投資的合併餘額為人民幣 349 億元，而截至 2025 年 3 月 31 日為人民幣 377 億元。該綜合餘額也受到人民幣兌美元匯率變動的影響（技術難度）。

Going forward, we will keep focusing on expanding our SVIP membership, introducing more and enhanced SVIP privileges such as high-quality content, artist-centric privileges, including early access to artist merchandise and concerts. Meanwhile, we will continue to invest in our products and innovative technologies globally. We remain optimistic in the health, growth prospects of the music entertainment industry and are confident about the high-quality growth of our business.

展望未來，我們將繼續致力於擴大我們的 SVIP 會員資格，推出更多、更強大的 SVIP 特權，如高品質內容、以藝術家為中心的特權，包括提前獲得藝術家商品和音樂會的權利。同時，我們將繼續在全球範圍內投資我們的產品和創新技術。我們對音樂娛樂產業的健康和成長前景保持樂觀，並對我們業務的高品質成長充滿信心。

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。

(Event Instructions) Lincoln, Goldman Sachs.

（活動說明）林肯、高盛。

So congrats on a very strong quarter. So my question is about the outlook. So given that the first half we have a very solid momentum, so how should we think about the second half in terms of revenue and as well as the profit outlook?

恭喜本季業績表現強勁。我的問題是關於前景的。鑑於上半年我們的發展勢頭非常強勁，那麼我們該如何看待下半年的營收和利潤前景？

Thank you so much, Lincoln, for your questions. And actually, we are really encouraged by this quarter's solid and well-rounded performance with both of our top line and also bottom line coming in strong. While our music subscription business remains robust, we will continue to focus on the high-quality growth. As mentioned before, our subscriber base right now has already reached over 124 million, and the pace for the net adds may fluctuate from quarter to quarter, but we do have the confidence that it will continue to have a high-quality growth in a healthy and dynamic manner.

林肯，非常感謝你的提問。事實上，本季穩健而全面的表現確實令我們感到鼓舞，我們的營收和利潤均表現強勁。雖然我們的音樂訂閱業務依然強勁，但我們將繼續專注於高品質的成長。如同先前所提到的，我們目前的用戶群已經超過1.24億，淨增用戶的速度可能每季都會有所波動，但我們有信心它將繼續以健康和動態的方式實現高品質成長。

And for the ARPPU, I think we are seeing a steady upward trend, as we continue to enhance our offerings and the value we provide to users. We believe these efforts will further strengthen our value propositions and users' willingness to pay overtime. So besides the good performance in the subscription business, I think the traction that we are seeing in our non-subscription services are also very exciting.

至於 ARPPU，我認為我們看到了穩定上升的趨勢，因為我們不斷增強我們的產品和為用戶提供的價值。我們相信這些努力將進一步加強我們的價值主張和用戶加班付費的意願。因此，除了訂閱業務的良好表現之外，我認為我們在非訂閱服務中看到的成長勢頭也非常令人興奮。

On one hand, the advertising continues to be an important growth driver, innovative and formats tailored to different user cohorts are particularly welcomed by the advertisers. And on the other hand, as we keep innovating and collaborating with more artists and labels, the new revenue streams from concerts and artist merchandise are becoming more scalable. So in the second quarter, revenue were more than doubled from a year over year basis, which really validates our strategy of building a comprehensive music entertainment platform.

一方面，廣告持續成為重要的成長動力，創新及針對不同使用者群體的廣告形式尤其受到廣告主的歡迎。另一方面，隨著我們不斷創新並與更多藝術家和唱片公司合作，來自音樂會和藝術家商品的新收入來源將變得更具可擴展性。因此，第二季的營收年增了一倍多，這真正驗證了我們建構綜合音樂娛樂平台的策略。

So for the visibilities, as you can probably understand, the concerts, for example, we experienced some short-term quarter-over-quarter fluctuations, as they have been involving in a lot of things like the scheduling, revenue selections and other logistical coordination. But overall, we are really optimistic and focused on driving a sustainable long-term growth.

因此，就可見性而言，正如您可能理解的那樣，例如音樂會，我們經歷了一些短期的季度環比波動，因為它們涉及很多事情，例如日程安排，收入選擇和其他後勤協調。但總體而言，我們確實非常樂觀，並專注於推動永續的長期成長。

So in a nutshell, for the full year of 2025, I think backed by the solid performance year to date, we now see the revenue expected to come in higher than our previous expectations. With our focus on the operational efficiencies, we see more room for bottom line improvement as well. Thank you for your questions.

所以總而言之，對於 2025 年全年而言，我認為，基於今年迄今為止的穩健表現，我們現在預計收入將高於我們先前的預期。透過專注於營運效率，我們也看到了更大的獲利改善空間。感謝您的提問。

Thank you, Cussion. Alicia Yap, Citigroup.

謝謝你，Cussion。花旗集團的 Alicia Yap。

Congrats on the solid results. I have a question on bubble, so can management share with us the traction of your recently launched bubble? What is the user feedback and user experience so far for this new product? And can bubble become a meaningful product in the coming future with potentially decent revenue contribution?

祝賀您取得如此豐碩的成果。我有一個關於泡沫的問題，管理層能否與我們分享一下你們最近推出的泡沫的吸引力？目前這款新產品的使用者回饋與使用者體驗如何？泡沫在未來能否成為有意義的產品，並可能帶來可觀的收入貢獻？

(interpreted) Thank you very much. Thanks for your question. First of all, the company has been very happy that we worked with DearU in this quarter to release the product named the bubble. Talking about the reason why we launched these surveys, the reason is because we have the feedback from the entire user group. There are some of defense groups.

（翻譯）非常感謝。謝謝你的提問。首先，公司非常高興我們在本季與 DearU 合作發布了名為泡泡的產品。說到我們進行這些調查的原因，是因為我們得到了整個使用者群體的回饋。有一些防禦團體。

Right before bubble, it would be very challenging for them to communicate with artists they follow. So within the QQ Music, we still would like to continue to enhance the user experience. So that's the reason we continue to strengthen our cooperation with DearU of launching such a service in this quarter.

在泡沫破裂之前，他們與所關注的藝術家進行溝通將非常具有挑戰性。所以在QQ音樂裡面我們還是希望繼續提升使用者體驗。這就是我們在本季度繼續加強與 DearU 的合作並推出此類服務的原因。

So once the bubble community is being launched, and we continue to optimize its basic experience to the user, especially the translation and the language proficiencies within the South Korean language and Chinese, this is a feature that we do see very wide recognition from the user feedback. So as Kar Shun stated in his statement, besides the South Korean artists from the three labels we are working now, in the near future, we're also going to introduce the Chinese artist to the bubble community.

所以泡泡社群一旦上線，我們就會不斷優化它對使用者的基本體驗，特別是韓語和中文的翻譯和語言能力，這是我們從使用者回饋中看到非常廣泛認可的功能。因此，正如嘉順在聲明中所說，除了我們現在合作的三個廠牌的韓國藝術家之外，在不久的將來，我們還將把中國藝術家引入泡沫社區。

In that way, we will be able in the Greater China region of providing the user experience that is within the human touch and the broad coverage and what then bubble used to have. This is also the expectation from our partner. But at the same time, we also have the bundled service for bubble and subscription and SVIP business. And we do hope such a bundled service would become a key growth driver for the future SVIP growth. According to the existing user profile, we can see many of the pay-to-go user.

這樣，我們將能夠在大中華區提供人性化、覆蓋範圍廣的用戶體驗，就像泡沫時期一樣。這也是我們對合作夥伴的期望。但同時，我們也有泡泡和訂閱的捆綁服務以及SVIP業務。我們確實希望這種捆綁服務能夠成為未來 SVIP 成長的關鍵成長動力。根據現有的使用者畫像，我們可以看到很多的付費用戶。

They are still the young users. So in the near future, they also demonstrate a very high activity, and this trend also allow us to build more confidence for the future user growth and commercialization. As many of you may notice, indeed, bubble is a well-established social product in overseas market, and we surely believe having bubble on board will help us to continue to consolidate our QQ Music and help TME to continue to launch socialized apps and the service in our existing music business.

他們依然是年輕的用戶。所以在不久的將來，他們也會表現出非常高的活躍度，這個趨勢也讓我們對未來用戶的成長和商業化建立更多的信心。大家可能已經注意到了，bubble確實是海外市場上很成熟的社交產品，我們堅信bubble的加入將有助於我們繼續鞏固QQ音樂，並幫助騰訊音樂娛樂繼續推出社交化應用和現有音樂業務的服務。

I truly believe as we continue to introduce Chinese artists into bubble community, and we are also going to add additional features, for example, like live streaming. In that way, we will be able to provide a richer commercialization opportunities to our entire subscription business in the near future.

我堅信，隨著我們繼續將中國藝術家引入泡泡社區，我們還將添加其他功能，例如直播。這樣，在不久的將來我們就能夠為我們的整個訂閱業務提供更豐富的商業化機會。

I also would like to emphasize for bubble to put on ease a very important step for us to embrace the social entertainment and because we do notice the customer needs such a service, and we do believe it has a great potential for its future commercialization.

我還想強調的是，bubble 的推出是我們進入社交娛樂領域非常重要的一步，因為我們確實注意到客戶需要這樣的服務，我們確實相信它在未來的商業化方面具有巨大的潛力。

Thomas Chong, Jefferies.

湯瑪斯‧張 (Thomas Chong)，傑富瑞 (Jefferies)。

Congratulations on a very strong set of results. My question is about our recent deal with Ximalaya. Can management comment about synergies with Ximalaya such as the cost optimization, enhancement in our product offerings and any areas that we can benefit the SVIP offerings as well?

恭喜您取得如此優異的成績。我的問題是關於我們最近與喜馬拉雅的交易。管理層能否評論一下與喜馬拉雅的協同效應，例如成本優化、產品供應的增強以及我們可以從 SVIP 產品中受益的任何領域？

(interpreted) Regarding our deal with Ximalaya, according to the regulation in China, we're still waiting for the further approval from the regulatory authorities. So now, it would be very difficult for us to make any corresponding comments. But the reason why we go for the Ximalaya deal is because for the management team and for the whole company we always believe in the value of long-form audio. Long-form audio is a very important content form. To us, it's already played a complementary role to our existing music business.

(翻譯) 關於我們與喜馬拉雅的交易，根據中國的規定，我們仍在等待監管機構的進一步批准。所以現在我們很難做出任何相應的評論。但我們選擇喜馬拉雅的原因在於，對於管理團隊和整個公司來說，我們始終相信長篇音訊的價值。長音頻是一種非常重要的內容形式。對我們來說，它已經對我們現有的音樂業務起到了補充作用。

At least from our own perspective, for the book listening, the individual members as well as the advertisement and also the long-form audio content in different music apps, we do see that nice progress being made on the subscriber base as well as commercialization. And we also see that consumption of the long-form audio and its penetration ratio with SVIP continue to go up.

至少從我們自己的角度來看，對於圖書收聽、個人會員以及廣告以及不同音樂應用程式中的長篇音訊內容，我們確實看到在用戶群和商業化方面取得了良好的進展。而我們也看到長音頻的消費量以及與SVIP的滲透率不斷上升。

So if the deal goes smoothly in the near future, I surely believe no matter for the subscription revenues or the ad revenue, we will have every opportunity to continue to grow our user base. If there's any further progress regarding this deal, we will also disclose the information to the market in due time.

因此，如果交易在不久的將來進行順利，我堅信無論是訂閱收入還是廣告收入，我們都將有機會繼續擴大我們的用戶群。如果這筆交易有進一步的進展，我們也會適時向市場揭露。

Morgan Stanley, Liu Yang.

摩根士丹利，劉洋。

Congratulations for the very strong results. I have a question on the other music revenue. Does management believe that in the long run, this part of the business will account for a bigger pie of the total revenue? And what will be the impact to the gross margin? Because we understand that advertisement is a very high-margin business, but how about off-line performance, concerts and merchandise, the overall impact to gross margin?

恭喜您取得如此優異的成績。我對其他音樂收入有疑問。管理層是否相信從長遠來看，這部分業務將在總收入中佔據更大的份額？這對毛利率有何影響？因為我們知道廣告是一個利潤率很高的業務，但是線下演出、演唱會和周邊商品對毛利率的整體影響如何？

(interpreted) Thank you very much. And the company is adopting the strategy of having content and platform at the same time. It is an all-in-one development. Well, regarding the Earth Live Concert as well as the Fans Economy, I think it's going to be a very important direction for us to go in the near future. It is also part of our strategic business.

（翻譯）非常感謝。而公司採取的是內容與平台並舉的策略。這是一個一體化的發展。嗯，關於地球現場演唱會以及粉絲經濟，我認為這將成為我們在不久的將來要走的一個非常重要的方向。這也是我們策略業務的一部分。

So in the long run, the other music is going to be key for our future development. Well, let's talk about the Fans Economy. As you may see, it is actually subjected to the scheduling of the artist as well as the merchandise shipment. From the revenue perspective, Fans Economy, the revenue continued to ramp up, but it will have some fluctuation -- I mean, the seasonal fluctuation, the same as Earth Live Concert and events. Due to the artist scheduling as well as the venue selection, there might be some seasonal fluctuations.

因此從長遠來看，其他音樂對於我們未來的發展至關重要。好，我們來談談粉絲經濟。如您所見，它實際上取決於藝術家的日程安排以及商品運輸。從收入角度來看，粉絲經濟的收入持續成長，但會有一些波動——我的意思是季節性波動，就像地球現場音樂會和活動一樣。由於藝術家的日程安排以及場地選擇，可能會出現一些季節性波動。

Well, regarding the GP margin, I have to admit for Fans Economy and Earth Live Concert, indeed, both GP margins are relatively low. So it will have some impact on the overall GP margin of the company. But generally speaking, on one side, we will continue to ramp up the GP margin. For example, we have ever increased subscriber base, and we also have more revenue from the advertising business, and we embrace the social entertainment. But at the same time, all those factors are indeed blessing our GP margin.

好吧，關於 GP 利潤率，我必須承認，對於 Fans Economy 和 Earth Live Concert 來說，確實，兩者的 GP 利潤率相對較低。所以這將對公司的整體毛利率產生一定的影響。但整體來說，一方面，我們會繼續提高毛利率。例如，我們的用戶數量不斷增加，廣告業務收入也不斷增加，我們積極進軍社交娛樂領域。但同時，所有這些因素確實有利於我們的毛利率。

So generally speaking, according to our existing observation of the Fans Economy and the Earth Live Concert, I have to see that compared with our existing online music, no matter for the subscription business or advertisement business, the revenue contribution from the Fans Economy and Earth Live Concert is relatively small. As its revenue contribution is relatively small, so its impact over the GP margin is also small.

所以總體來說，根據我們現有的對粉絲經濟和地球演唱會的觀察，我必須看到，與我們現有的線上音樂相比，無論是訂閱業務還是廣告業務，粉絲經濟和地球演唱會的收入貢獻相對較小。由於其收入貢獻相對較小，因此對毛利率的影響也很小。

I also mentioned about the revenue seasonality’s for the Fans Economy and the Earth Live Concert. In certain reason, when the revenue from those service are relatively high, it will surely fluctuate the overall GP margin. But overall speaking, we're still very confident on the uprising trend of our GP margin.

我還提到了粉絲經濟和地球現場音樂會的收入季節性。從某些原因來說，當這些服務的收入相對較高時，必然會造成整體毛利率的波動。但整體來說，我們對毛利率的上升趨勢還是很有信心的。

(interpreted) I also would like to make a comment on caution. And beside what has been mentioned by Shirley, I have to say that we never take the Earth Live event concert or even the Fans Economy and the merchandise as a separate business. We take it as a business that can be complementary to our existing online business.

（翻譯）我還想就謹慎發表一點評論。除了 Shirley 提到的之外，我必須說，我們從來沒有將地球現場活動音樂會甚至粉絲經濟和商品視為單獨的業務。我們將其視為可以與我們現有的線上業務互補的業務。

So we actually leverage the privileges generated from the Earth Live business to continue to support the healthy growth of our online music business. To TME, as we have already mentioned, we have the content and the platform, the two-wings-in-one-body strategy. And we hope that in the near future, such strategy will help us to explore more possibilities and competitive edge.

因此，我們實際上利用 Earth Live 業務產生的特權來繼續支持我們的線上音樂業務的健康成長。對TME來說，正如我們已經提到的，我們有內容和平台，雙翼一體的策略。我們希望在不久的將來，這樣的策略能夠幫助我們探索更多的可能性和競爭優勢。

(interpreted) I also like to make a comment. I'm Ross. And I think in this quarter, we plan to launch the SVIP annual membership card for the shopping malls, especially for the merchandise product. In other words, provide a discounted offering of the merchandise we have in our shopping malls. Fundamentally speaking, it is within the same nature as the e-commerce membership card. We hope by initiating such a great strategy, we will continue to improve the profitability of the merchandise.

（翻譯）我也想發表一下評論。我是羅斯。而且我認為在本季度，我們計劃推出針對購物中心的SVIP年度會員卡，特別是針對商品產品。換句話說，以折扣價出售我們購物中心內的商品。從根本上來說，它和電商會員卡屬於同一性質。我們希望透過實施這樣一個偉大的策略，我們將繼續提高商品的獲利能力。

Alex Yao, JPMorgan.

摩根大通的 Alex Yao。

Congrats on a solid quarter. Just want to follow up with this Fans Economy developments. As you guys expand from online music distribution into the broader Fans Economy, including artist-related merchandise, offline performance, connectivity between artists and fans, et cetera, et cetera, where do you see is the biggest opportunity? And what do you see as the biggest challenge, let's say, on one to two years' view?

恭喜本季業績穩健。只是想跟進粉絲經濟的發展。隨著你們從線上音樂發行擴展到更廣泛的粉絲經濟，包括與藝術家相關的商品、線下表演、藝術家和粉絲之間的聯繫等等，你們認為最大的機會在哪裡？那麼，從一到兩年的角度來看，您認為最大的挑戰是什麼？

(interpreted) Talking about the biggest opportunity, as Kar Shun has already mentioned, fundamentally speaking, the company is still committed of building a comprehensive service platform, including the copyright content, the merchandise as well as the privilege. So we believe that Fans Economy is not something separate. It's already within our system.

(翻譯) 說到最大的機會，正如嘉順已經提到的，從根本上來說，公司仍然致力於打造一個綜合的服務平台，包括版權內容、商品以及特權。所以我們認為粉絲經濟並不是一個獨立的東西。它已經在我們的系統內了。

So at least for the company, what we truly care about is leveraging the merchandise as well as the Earth Live Concert to continue to forge a deep bond between the offline and online platform. In that way, we will be able to continue to grow our subscriber base.

因此，至少對於公司而言，我們真正關心的是利用商品以及地球現場音樂會繼續在線下和線上平台之間建立深厚的聯繫。這樣，我們將能夠繼續擴大我們的用戶群。

This is something the company already counted on. So now -- and we do enjoy a great advantage on copyright, but what we do is trying to further expand our advantage in copyright in both China and internationally. And we hope what we could be is a comprehensive music entertainment service to our user.

這是公司早已預料到的事。所以現在——我們確實在版權方面享有很大的優勢，但我們所做的是試圖進一步擴大我們在中國和國際上的版權優勢。我們希望能夠為用戶提供全面的音樂娛樂服務。

Regarding the challenge, and I think to some extent, we really need to make sure the size and development of the platform can help us to make sure we have integrated development for both content and privilege. Another opportunity I do notice that for this quarter, we organized the concert for G-DRAGON.

關於挑戰，我認為在某種程度上，我們確實需要確保平台的規模和發展能夠幫助我們確保內容和特權的全面發展。我注意到的另一個機會是，本季我們為 G-DRAGON 組織了音樂會。

It was staged in overseas countries and very likely to have extra stations in Southeast Asia market. And at the same time, besides providing the Earth Live Concert, and we also have the merchandise as a comprehensive service. This will help us to continue our international expansion.

該劇已在海外上演，很有可能在東南亞市場加演。同時，我們除了提供地球現場演唱會之外，還有周邊商品的綜合服務。這將有助於我們繼續國際擴張。

Macquarie, Ellie Jiang.

麥格理，艾莉‧蔣。

Congrats on a strong result. We are very encouraged to see all of these exciting developments and initiatives. So my question is really on our long-term positioning. Could management share how we foresee our longer-term revenue mix? And how this could further evolve, especially it seems like we are expanding into more diversified kind of music offerings? And also taking a much longer-term view, how do you see TME positioned on the entire entertainment value chain?

恭喜你取得了優異的成績。我們非常高興看到所有這些令人興奮的發展和舉措。所以我的問題其實是關於我們的長期定位。管理階層能否分享我們如何預見我們的長期收入結構？這將如何進一步發展，尤其是我們似乎正在擴展到更多樣化的音樂產品？從更長遠的角度來看，您如何看待 TME 在整個娛樂價值鏈中的地位？

(interpreted) Well, regarding the overall positioning of the company (technical difficulty), we are still going to leverage our one-body-two-wing strategy. That is the platform plus the content ecosystem to continue to advance our strategy. As we have a very steady development for the live streaming music platform business, I do believe in the near future, the key source of the revenue and profit are coming from our online music business.

(翻譯)嗯，關於公司整體的定位(技術難度)，我們還是會發揮一體兩翼的策略。那就是平台加上內容生態系統來繼續推進我們的策略。由於我們的直播音樂平台業務發展非常穩健，我相信在不久的將來，我們的收入和利潤的主要來源將來自我們的線上音樂業務。

Well, regarding the advertisement business, it is also another highlight of our overall business. So in the longer run, I believe the advertisement revenue growth is even going to be kind of faster than the online music revenue growth. But indeed, both are all very important growth driver with our online music revenue.

那麼關於廣告業務，這也是我們整體業務的另一個亮點。因此從長遠來看，我相信廣告收入的成長速度甚至會比線上音樂收入的成長速度更快。但事實上，兩者都是我們線上音樂收入非常重要的成長動力。

Well, regarding the social entertainment, our revenue has already been stabilized. But in the near future, we will have new growth driver as Shirley and Ross has already introduced to you. Besides the content, we also have the performance of Earth Live Concert, Fans Economy, including the artist merchandise. Those will also continue to contribute revenue to the company with nice growth. So generally speaking, and for TME, we're still going to take development or retention in the near future.

嗯，關於社交娛樂，我們的收入已經穩定了。但在不久的將來，我們將擁有新的成長動力，正如 Shirley 和 Ross 已經向大家介紹的那樣。除了內容之外，我們還有地球現場演唱會的演出，粉絲經濟，包括藝術家商品。這些也將繼續為公司帶來良好的成長收入。所以總體來說，對於TME來說，我們在不久的將來仍然會進行開發或保留。

Our key focus is to continue to develop the company based upon our existing model, where at the same time, we are also going to keep an eye on the new business, for example, long-form audio as well as our international business expansion. I surely believe they will also provide extra acceleration for our existing business.

我們的重點是在現有模式的基礎上繼續發展公司，同時，我們也將專注於新業務，例如長篇音訊以及我們的國際業務擴展。我堅信他們也會為我們現有的業務提供額外的加速。

Wei Xiong, UBS.

熊偉，瑞銀。

Congrats on a solid quarter. So earlier, management mentioned the strong advertising revenue growth year on year , which was partly helped by a newly launched ad-based membership. So could management share more detail about the revenue and subscriber contribution from this new membership? And what's the operational strategy to scale it up and maximize the revenue opportunity here without affecting the conversion to the standardized subscription plan?

恭喜本季業績穩健。因此早些時候，管理層提到廣告收入同比強勁增長，這在一定程度上得益於新推出的基於廣告的會員資格。那麼管理階層能否分享更多有關新會員的收入和訂戶貢獻的細節？在不影響向標準化訂閱計劃轉換的情況下，擴大規模並最大化收入機會的營運策略是什麼？

(interpreted) Actually, I think the fast growth of the advertisement business is coming from the online advertising rather than the ad-based membership growth. Therefore, in the near future, I think at least for the advertisement business, incentivized-based advertisement is still going to be the key in the next few years.

(翻譯)實際上，我認為廣告業務的快速成長來自於網路廣告，而不是基於廣告的會員成長。因此，在不久的將來，我認為至少對於廣告業務來說，激勵性廣告仍將是未來幾年的關鍵。

Different from the standardized free advertising, the incentive-based advertisement is for all the users. It is a common and general incentive's model to all users. So we are still confident in the future growth from the incentive-based advertisement business.

與標準化的免費廣告不同，激勵性廣告是針對所有用戶的。這是對所有使用者來說都是一個共同的、普遍的激勵模式。因此，我們對激勵廣告業務的未來成長仍然充滿信心。

Actually, with the existing user base of the incentivized ad business, about two months ago, we started to pilot on the advertisement membership format. Just now, I have already mentioned for ad-based membership, the ARPPU is relatively low, but it can provide a differentiated solution to different user groups.

其實，在激勵廣告業務現有的用戶基礎上，大概兩個月前，我們就開始試辦廣告會員模式。剛才我已經提到了，對於廣告會員來說，ARPPU比較低，但可以針對不同的使用者群體提供差異化的解決方案。

So I think in the near future for ad-based membership plus our standard member as well as SVIP, it's a 3-tier membership system. It can help us to continue to broaden the size of our subscribers and the user. So this is indeed a very important strategic operational direction for us to go.

因此我認為在不久的將來，基於廣告的會員加上我們的標準會員以及 SVIP，將形成一個三級會員系統。它可以幫助我們繼續擴大訂戶和用戶的規模。所以這確實是我們非常重要的一個戰略作戰方向。

That's the reason for the past two months, we actually attached great importance to the content of the platform. But I have to say it's still in the infancy stage. If there's any nice progress being made in the near future, we will surely share it with all of you.

這就是為什麼過去兩個月我們實際上非常重視平台內容的原因。但我必須說它仍處於起步階段。如果在不久的將來有任何好的進展，我們一定會與大家分享。

We still have some questions, and we'll take the last two. Roger, Barclays.

我們還有一些問題，我們將回答最後兩個問題。羅傑，巴克萊。

Congrats on a very solid quarter. So my question is on operating expenses. For the last couple of quarters, our bottom line continued to outpace our topline growth, thanks to very successful cost reduction in terms of sales and marketing expenses and G&A expenses. Should we see this trend to continue for the rest of '25 and '26 given that we have identified so many growth opportunities that management has talked about? How should we think about our operating leverage from this point on?

恭喜本季業績非常穩健。我的問題是關於營運費用。在過去的幾個季度中，由於銷售和行銷費用以及一般行政費用方面的成本削減非常成功，我們的底線成長繼續超過我們的收入成長。鑑於我們已經確定了管理層所談論的如此多的成長機會，我們是否應該認為這種趨勢將在 25 年和 26 年的剩餘時間內持續下去？從現在起我們該如何考慮我們的經營槓桿？

(interpreted) Thank you very much. Thanks for your question. Our marketing expenses, especially the sales expense is actually being used for the promotion of the content as well as traffic gain for the channel. Well, for both, we were going to make adjustment according to the market competition. As of now, what we do is to continue our investment for the musical content promotion investment as well as the music channel promotion.

（翻譯）非常感謝。謝謝你的提問。我們的行銷費用，特別是銷售費用實際上是用於內容的推廣以及管道的流量增長。嗯，對於這兩者，我們都會根據市場競爭做出調整。目前我們所做的就是繼續對音樂內容的推廣投入以及音樂頻道的推廣。

Well, regarding the R&D expenses, we will always keep an eye on the new technological empowerment to see how the new technology will bring the industrial innovation and new opportunities. And we do foresee that compared with 2024 and the absolute value of the operational expenses will grow compared with the baseline of 2024. But we will make sure we control the expenses growth would always be slower than the revenue growth. In other words, we still leave enough growth for the net profit rate and the net profit.

關於研發費用，我們會一直關注新的技術賦能，看新技術將如何帶來產業創新和新機會。我們確實預見到，與 2024 年相比，營運費用的絕對值將與 2024 年基線相比有所增長。但我們會確保控制支出成長始終低於收入成長。也就是說，我們仍然給淨利潤率和淨利潤留有足夠的成長空間。

In the interest of time, we'll take the last question from Maggie, CLSA.

為了節省時間，我們將回答里昂證券的 Maggie 提出的最後一個問題。

Congrats on the very impressive set of results. My question goes back to online music subscription business. Can you share a bit more on the Super VIP penetration, its ARPPU trend and the overall retention rate in this quarter and overall? We noticed that many of the drivers behind Super VIP penetration are time-based or event-driven type of activities. Just wondering how shall we think about the sustainability of such growth? What would be management's top priority in driving a sustainable revenue growth in the superfan economy?

恭喜您取得如此令人印象深刻的成果。我的問題又回到線上音樂訂閱業務。您能否分享更多關於超級 VIP 滲透率、其 ARPPU 趨勢以及本季和整體的整體留存率的資訊？我們注意到，超級 VIP 滲透背後的許多驅動因素都是基於時間或事件驅動的活動。只是想知道我們該如何看待這種成長的可持續性？在推動超級粉絲經濟的可持續收入成長方面，管理層的首要任務是什麼？

(interpreted) Thank you very much. But first of all, I think there will be some misunderstanding here I need to clear. And first of all, the key growth driver of SVIP penetration ratio is not on time or not on any single event. It just happened to be when there's a new sound or new albums being released, there might be some marginal growth from this release. Well, as already been stated in our prepared remarks, we now have 50 million SVIP members and 124 million subscribers.

（翻譯）非常感謝。但首先，我認為這裡存在一些誤解，我需要澄清一下。首先，SVIP滲透率的關鍵成長動力不在於時間，也不在於任何單一事件。恰巧，每當有新的聲音或新專輯發佈時，這次發布可能會帶來一些邊際增長。嗯，正如我們在準備好的發言中已經提到的，我們現在有 5000 萬 SVIP 會員和 1.24 億訂閱者。

And you can then calculate the SVIP penetration ratio, where we're also going to see the penetration ratio will continue to go up, including the ARPPU and retention, they are all ramping up. And we're very likely and happy to see the growth trajectory is in line with our expectation.

然後你可以計算出 SVIP 滲透率，我們還將看到滲透率將繼續上升，包括 ARPPU 和保留率，它們都在上升。我們非常有可能並且很高興看到成長軌跡符合我們的預期。

Well, actually, the key growth driver are still coming from the premier sound quality as well as the long-form audio content as well as digital album, where to some extent, we also have the regular members who has been converted into the SVIP. So the fundamental logic of SVIP growth are still coming from our well-consolidated business growth. For example, let me just share a case with you.

嗯，實際上，關鍵的成長動力仍然來自一流的音質以及長篇音頻內容和數位專輯，在某種程度上，我們也有普通會員轉化為 SVIP。因此，SVIP成長的根本邏輯仍來自於我們良好整合的業務成長。例如，讓我與大家分享一個案例。

For example, the (technical difficulty) new album and the sales of this album with our SVIP is already hitting our expectation. We no longer to record it as a single album sales. So that's the reason I think our SVIP will continue to grow in a very robust manner.

比如說（技術難度）新專輯，還有我們SVIP的這張專輯的銷售量已經達到了我們的預期。我們不再把它當作一張單曲專輯來記錄銷售。所以我認為我們的 SVIP 將繼續以非常強勁的方式成長。

To the second part of your question, regarding whether the Fans Economy business is going to be sustainable. As I have already mentioned, we did many preparations, at least 6 months to 12 months before the event happened for the scheduling. In that way, we will be able to make sure we will be able to run the artist-related business in a more robust and sustainable manner.

關於你問題的第二部分，關於粉絲經濟業務是否可持續。正如我已經提到的，我們做了很多準備工作，至少在活動開始前 6 個月到 12 個月就進行了安排。這樣，我們就能確保以更強勁、更永續的方式開展與藝術家相關的業務。

One more additional comment to our team is if there is no major Earth Live Concert event happens, we're still going to maintain a rapid growth of the merchandise sales. As you may see, we already have a steady growth on that. What we are committed to do is to make sure our Fans Economy revenue will continue to grow as we expected.

對我們團隊的另一個補充評論是，如果沒有大型地球現場音樂會活動發生，我們仍然將保持商品銷售的快速成長。如您所見，我們已經實現了穩定成長。我們致力於確保我們的粉絲經濟收入能夠繼續按照我們的預期成長。

Thank you, everyone, for joining us today. If you have any further questions, please feel free to reach out to the IR team. This concludes today's call, and thank you once again and look forward to speaking to you next quarter. This concludes today's call.

感謝大家今天加入我們。如果您有任何其他問題，請隨時聯絡 IR 團隊。今天的電話會議到此結束，再次感謝您，並期待下個季度與您交談。今天的電話會議到此結束。

Thank you so much.

太感謝了。

Thank you.

謝謝。

Bye-bye.

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。