Tencent Music Entertainment Group (TME) 2026 Q2 法說會逐字稿

Good evening, good morning, and welcome to Tencent Music Entertainment Group's second-quarter 2026 earnings conference call. I'm Millicent, 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.

各位晚上好、早上好，歡迎參加騰訊音樂娛樂集團2026年第二季度業績電話會議。我是Millicent，投資者關係主管。我們已於今日美股開盤前公布本季度財務業績。業績新聞稿現已於我們的投資者關係網站及Newswire新聞發布服務上提供。

During today's call, you'll hear from Mr. Kar Shun Pang, our Executive Chairman; and Mr. Ross Liang, our CEO. He will share an overview of the company's 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董事長彭迦信先生，以及我們的首席執行官梁柱先生的發言。他將分享公司策略概覽與業務最新進展。隨後，我們的首席財務官胡敏女士將在開放提問前，先行介紹我們的財務業績。

Before we continue, I refer you to the Safe Harbor statement in our earnings release, which applies to today's call as we 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.

在我們繼續之前，請參閱我們業績新聞稿中的「安全港」聲明；由於我們將在本次電話會議中作出前瞻性陳述，該聲明同樣適用。另請注意，我們今天將討論非IFRS衡量指標；相關指標在我們的業績新聞稿以及向美國證券交易委員會（SEC）提交的文件中，已更完整說明，並與IFRS下最可比的衡量指標進行了調節對帳。

All participants are on mute at this time. After management's remarks, there will be a Q&A session, and please realize that today's call will be recorded.

目前所有參與者均已靜音。管理層發言結束後將進入問答環節，並請注意今天的電話會議將被錄音。

With that, I'm pleased to turn the call over to Cussion, Executive Chairman of TME. Cussion, please.

接下來，我很高興把電話交給TME執行董事長Cussion。Cussion，請。

Thank you, Millicent. Hello, everyone, and thank you for joining our call today. In the second quarter, we delivered resilient performance while navigating a complex and evolving market. Our second growth engine continued to strengthen. Revenue from marketing and consumption service achieved another quarter of solid growth as we further expanded the value of music IP through live concerts, merchandise, and other IP-driven experiences.

謝謝你，Millicent。各位好，感謝大家今天參加我們的電話會議。第二季度，在應對複雜且不斷演變的市場環境中，我們仍交出具韌性的表現。我們的第二成長引擎持續增強。隨著我們透過現場演唱會、周邊商品及其他以IP驅動的體驗，進一步擴大音樂IP價值，行銷與消費服務收入再度實現一個季度的穩健成長。

The addition of Ximalaya marks another important step in our content and platform strategy. By bringing music and audio together, we are enriching our content offering, reaching users across more listening occasions, and giving them more ways to discover, enjoy, and engage with great content.

喜馬拉雅的加入，標誌著我們內容與平台策略的又一重要步驟。透過把音樂與音頻結合，我們正在豐富內容供給，觸達更多聆聽場景下的用戶，並為他們提供更多方式去發現、享受並參與優質內容。

Our strategy is clear. We are strengthening our content ecosystem by deepening strategic partnerships, developing more proprietary IP and extending premium content across a wider range of user experiences. First, premium content remains at the heart of this strategy, and the recent momentum we are seeing with classic catalogs is a perfect example.

我們的策略很清晰。我們正透過深化策略合作夥伴關係、打造更多自有IP，並將優質內容延伸至更廣泛的用戶體驗，來強化我們的內容生態。首先，優質內容仍是該策略的核心，而我們近期在經典曲庫上看到的動能正是一個絕佳例證。

Hits variety shows and concert tools have amplified the reach of this work, making loyal fans more engaged while drawing in new generation of listeners. This has led to continuous growth in their streaming share. Second, we continue to expand our partnerships beyond traditional content licensing. Recently, we deepened our partnerships with Dream Music Group. In addition to securing digital-first releases for its top artists, we expanded our collaboration into new areas, including content co-creation, musical offerings, and offline experiences.

熱門綜藝節目與演唱會工具放大了這項工作的觸達範圍，讓忠實粉絲更投入，同時吸引新一代聽眾。這也帶動其串流份額持續成長。第二，我們持續將合作夥伴關係拓展至傳統內容授權以外。近期，我們深化了與夢想音樂集團的合作。除為其頭部藝人爭取數位優先發行外，我們也把合作延伸至新領域，包括內容共創、音樂供給以及線下體驗。

At the same time, we partnered with Huace Film & TV, Ruyi Film Entertainment, and Zhejiang Satellite TV to bring original soundtracks and popular music variety shows to our platform, creating a more immersive connection between music and visual entertainment. These deeper partnerships allow us to work more closely with creators and rights holders across the whole music value chain, enabling us to create more value from premium IP.

同時，我們與華策影視、儒意影業以及浙江衛視合作，將原聲帶與熱門音樂綜藝帶到我們的平台上，打造音樂與視覺娛樂之間更沉浸的連結。這些更深度的合作使我們能與整個音樂價值鏈上的創作者與版權方更緊密協作，從而從優質IP中創造更多價值。

Third, another key focus is developing more high-quality proprietary content, which is becoming an increasingly important differentiator for TME and giving users more reasons to engage with our platform. Examples include Zhou Shen's Blaze into Bloom (spoken in foreign language), the theme song for the 2026 Jiangsu Football City League; Liu Yuning's Borrow a Little Light from Ordinary Days (spoken in foreign language), Kugou Music's new brand anthem; and the theme song and insert song for the hit animated theme, All Wishes Come True! (spoken in foreign language), all of which recorded strong streaming performance since their release.

第三，另一個重點是打造更多高品質自有內容，這正成為TME日益重要的差異化優勢，並為用戶提供更多參與我們平台的理由。例如：周深的《Blaze into Bloom》（spoken in foreign language），作為2026江蘇足球城市聯賽主題曲；劉宇寧的《Borrow a Little Light from Ordinary Days》（spoken in foreign language），酷狗音樂全新品牌主題曲；以及爆款動畫主題《All Wishes Come True!》（spoken in foreign language）的主題曲與插曲；上述作品自發布以來均錄得強勁的串流表現。

Fourth, Ximalaya further strengthens our content advantage with its premium audiobooks and podcasts. By adding popular categories like online novels, history, kids content, and education, we can reach users across many other more listening occasions, ultimately enhancing user time spent and engagement within our ecosystem.

第四，喜馬拉雅憑藉其優質有聲書與播客，進一步強化我們的內容優勢。透過新增網路小說、歷史、兒童內容與教育等熱門品類，我們能在更多其他聆聽場景中觸達用戶，最終提升用戶在我們生態內的使用時長與互動度。

What really stands out is Ximalaya's ability to create its own hits. Its original productions have consistently driven strong engagement and paid conversion. In fact, 9 of its top 10 new online local titles this year were produced in-house, underscoring both the strength and scalability of its original content capabilities.

真正突出的，是喜馬拉雅打造自有爆款的能力。其原創製作持續帶來強勁互動與付費轉化。事實上，今年其新增的本地線上作品前十名中，有九部為內部製作，凸顯其原創內容能力的實力與可擴展性。

Just as importantly, owning these hits also means better economics. With the strength of our content and platform ecosystem, deep user insights, expansive services and a strong commitment to upholding copyright protection, a growing number of artists are turning to us as we expand talent development and artist management.

同樣重要的是，擁有這些爆款也意味著更好的經濟效益。憑藉我們內容與平台生態的優勢、深度用戶洞察、廣泛的服務能力，以及對版權保護的堅定承諾，隨著我們拓展人才培養與藝人管理，越來越多藝人正選擇與我們合作。

This is a natural extension of our ecosystem that creates value for artists, we are uniquely positioned to deliver. This is exciting as it empowers us to be more entrepreneurial and innovative in bringing more premium content and IP-driven immersive music experiences to music lovers.

這是我們生態的自然延伸，能為藝人創造價值，而我們具備獨特優勢可以交付。這令人振奮，因為它賦能我們以更具創業精神與創新方式，為樂迷帶來更多優質內容與以IP驅動的沉浸式音樂體驗。

First, take rapper Zhou Yan, GAI, for instance. As his strategic partner, we have supported him across content promotion, IP development, and concert planning, helping him expand into new markets and formats and grow from arena shows to stadium concerts. Following the success of his EVOLUTION Tour in Asia, we launched REAL G, the first Chinese language rap stadium tour in China. More than 30,000 fans attended his opening show in Xi'an.

首先，以說唱歌手周延（GAI）為例。作為他的策略合作夥伴，我們在內容宣推、IP開發與演唱會策劃等方面提供支持，幫助他拓展新市場與新形式，並從體育館演出成長到體育場演唱會。在其亞洲EVOLUTION巡演成功之後，我們推出REAL G——中國首個中文說唱體育場巡演。超過30,000名粉絲參加了他在西安的首場演出。

Tia Ray, Yuan Yawei, is another good example. Her Once Upon a Moon tour wrapped up with two consecutive sold-out arena shows in Hangzhou and is now reaching international markets, showcasing her rising profile and growing fan base. We are also helping artists expand into new opportunities. For renowned actor and singer, Steven Zhang, Zhang Xincheng, we produced his debut arena tour, New Journey, and his opening show in Shenzhen sold out quickly during pre-sales.

袁婭維（Tia Ray）也是另一個很好的例子。她的「Once Upon a Moon」巡演以杭州連續兩場體育館售罄收官，並正走向國際市場，展現其日益提升的影響力與不斷擴大的粉絲群。我們也在協助藝人拓展新的機會。對於知名演員兼歌手張新成（Steven Zhang），我們製作了他的首個體育館巡演「New Journey」，其深圳首站在預售期間迅速售罄。

Second, recently, we invested in The Black Label to deepen our collaboration on a broader range of IP-related initiatives, including artist promotion and merchandise development, helping leading artists to build deeper connections with their audience in China. This strategic partnership reflects our commitment to exploring cross-border opportunities and deepening the fan-based economy.

第二，近期我們投資The Black Label，以深化在更廣泛IP相關項目上的合作，包括藝人宣推與周邊商品開發，協助頭部藝人在中國與受眾建立更深連結。這項策略合作反映我們致力於探索跨境機會並深化粉絲經濟。

By integrating content creation, music streaming, artist development, live experiences, merchandise, and fans engagement, we are able to create more value from premium IP, truly bringing the IP to life. We are already seeing encouraging results. IP-related consumption services, particularly live events and artist merchandise, continue to deliver strong double-digit year-over-year growth during the quarter.

透過整合內容創作、音樂串流、藝人培育、現場體驗、周邊商品與粉絲互動，我們能從優質IP中創造更多價值，真正讓IP「活起來」。我們已看到令人鼓舞的成果。本季度，IP相關消費服務，尤其是現場活動與藝人周邊商品，持續實現強勁的同比雙位數成長。

First, in live entertainment, we hosted three fan meetings in Macau for SM Entertainment's trainee group, SMTR25. The event attracted tens of thousands of fans and generated strong merchandise sales. TIMA, our proprietary flagship concert IP for International Music Awards, is becoming a larger and more influential brand in just its second year. Building on last year's success, we scaled up the venue to Kai Tak Sports Stadium in Hong Kong, including audience capacity by more than three-folds, capturing music lovers' growing enthusiasm.

首先，在現場娛樂方面，我們在澳門為SM娛樂的練習生團體SMTR25舉辦了三場粉絲見面會。活動吸引了數以萬計的粉絲，並帶動強勁的周邊銷售。TIMA——我們自有的國際音樂獎旗艦演唱會IP——在第二年就正成為更大且更具影響力的品牌。在去年成功的基礎上，我們將場地升級至香港啟德體育園主場館，觀眾容量提升超過三倍，捕捉到樂迷日益高漲的熱情。

Second, artist merchandise also continued to gain momentum. By bringing together our capabilities in IP development, product design, merchandising, and distribution, we are creating more meaningful connections between artists and their fans. During the quarter, we produced Zhou Shen's physical albums in both CD and vinyl formats, complemented by a range of collectibles merchandise that generated strong fan demand. Physical album releases from KUN, Chen Chusheng, Zhou Shen, and Eazin Poe also delivered impressive results.

第二，藝人周邊商品也持續增長動能。透過整合我們在IP開發、產品設計、商品化與分銷方面的能力，我們正在為藝人與粉絲之間創造更有意義的連結。本季度，我們製作了周深的實體專輯，涵蓋CD與黑膠兩種形式，並搭配一系列收藏型周邊商品，帶動強勁的粉絲需求。KUN、陳楚生、周深與Eazin Poe的實體專輯發行也取得亮眼成績。

Protecting copyright is fundamental to preserving the long-term value of premium IP. During the quarter, we continued to strengthen our copyright protection efforts through proactive screening and takedown, legal action and closer collaboration across the industry. As AI continues to evolve, we are stepping up our engagement with regulators, music labels, artists, and other industry partners to strengthen copyright protection in the new era.

保護著作權是維護優質 IP 長期價值的根本。本季度，我們持續透過主動篩查與下架、法律行動，以及與產業各方更緊密的合作，強化著作權保護工作。隨著 AI 持續演進，我們正加大與監管機構、唱片公司、藝人及其他產業夥伴的互動，以在新時代進一步強化著作權保護。

By working together across the industry, we believe we can foster a healthier environment for creators, reinforce the long-term value of premium IP, and support the sustainable development of the music industry. We remain committed to providing a safe and enjoyable music experience for users of all ages.

我們相信，透過全產業的共同合作，能為創作者營造更健康的環境，鞏固優質 IP 的長期價值，並支持音樂產業的永續發展。我們仍致力於為各年齡層用戶提供安全且愉悅的音樂體驗。

During the second quarter, with comprehensive upgrades to Youth Mode across our core products, we created a dedicated library of age-appropriate music, helping younger users discover and enjoy music in a safer and more trusted environment. To conclude, while challenges remain, we believe we are still in the early innings of unlocking the full potential of premium IP. We are excited about the opportunities ahead and remain confident in our ability to deliver sustainable long-term growth.

第二季度，我們對核心產品的青少年模式進行全面升級，打造了適齡音樂的專屬曲庫，協助年輕用戶在更安全、更值得信賴的環境中發現並享受音樂。總結而言，儘管挑戰仍在，我們相信我們仍處於釋放優質 IP 全部潛力的早期階段。我們對未來機會感到振奮，並對實現可持續的長期成長充滿信心。

With that, I will turn the call over to Ross.

接下來，我把電話交給 Ross。

Thank you, Cussion. Hello, everyone. While the competitive landscape continues to evolve, our commitment has not changed, delivering the best music and audio experiences for our users. Every user listens differently. That's why we continue to innovate our products, broaden our user reach, and enrich our membership offering.

謝謝你，Cussion。各位好。儘管競爭格局持續演變，我們的承諾始終不變——為用戶提供最佳的音樂與音訊體驗。每位用戶的聆聽方式都不同。因此，我們持續推動產品創新、擴大用戶觸達，並豐富會員服務內容。

In the second quarter, our focus on user experience translated into stronger engagement, with average daily time spend continuing to improve, supporting spending, growth in membership revenue. Product innovation remains at the heart of everything we do to serve our users. This quarter, we created a more seamless discovery-to-playback journey through improvements in content discovery and audio quality.

第二季度，我們對用戶體驗的聚焦轉化為更強的互動表現，日均使用時長持續提升，帶動付費意願並推動會員收入成長。產品創新始終是我們服務用戶的核心。本季度，我們透過改進內容發現與音質，打造更順暢的「發現到播放」體驗旅程。

Enhanced content discovery features, such as swipe tabs and video feeds, help users explore more relevant content in a more engaging way. Newly introduced 3D music send-in audio also allowed premium users to experience premium sound quality from their very first listen.

強化的內容發現功能（如滑動分頁與影片資訊流）讓用戶能以更具互動性的方式探索更相關的內容。新推出的 3D 音樂「送審」音訊也讓高級用戶從第一次聆聽起就能體驗優質音效。

Thoughtful of application of AI also made music discovery more intuitive and personalized. We upgraded our AI agents across QQ Music and Kugou, enabling them to better understanding nuanced user intents. Acting as personal DJs, these AI agents can now instantly create personalized playlists tailored to users' listening needs in the moment.

我們也審慎地運用 AI，使音樂發現更直覺、更個人化。我們升級了 QQ 音樂與酷狗的 AI 代理，使其能更好地理解用戶細緻的意圖。作為個人 DJ，這些 AI 代理如今可即時生成符合用戶當下聆聽需求的個人化歌單。

Together, these improvements helped users discover more content, boosted their time spent on our platform and increased the share of recommendation-driven streams. While delivering great services is the foundation, reaching more users is equally important. That's why we are continuing to deepen our integration with the Tencent ecosystem to expand our presence across more user touch points.

這些改進共同幫助用戶發現更多內容，提升在平台上的使用時長，並提高由推薦驅動的播放占比。在提供優質服務是基礎的同時，觸達更多用戶同樣重要。因此，我們持續深化與騰訊生態的整合，擴大在更多用戶觸點的覆蓋。

First, we deepened our cooperation with Weixin Video Accounts by bringing leading labels, top artists, and independent musicians into its ecosystem. We are creating a more seamless journey from music discovery to full track listing on TME. Collaborations with Weixin Pay also helped our lightweight products such as Bodian Music and the Kugou Concept attract users looking for simple music experience and deepen their engagement. Furthermore, we recently integrated with Weixin's AI agent, XiaoWei.

首先，我們加深與微信影片號的合作，將頭部唱片公司、頂級藝人與獨立音樂人引入其生態。我們正打造從音樂發現到在 TME 完整曲目收聽的更無縫旅程。與微信支付的合作也幫助我們的輕量化產品（如波點音樂與酷狗概念版）吸引追求簡單音樂體驗的用戶，並加深其互動。此外，我們近期也與微信的 AI 代理「小微」完成整合。

We are pleased that by tapping into Weixin's massive user base, more users can now discover songs, generate playlists, stream music with easy commands, and instantly share favorite tracks with friends. Together, these initiatives are expanding our user reach, improving conversion and engagement as well as enhancing content distribution across the Tencent ecosystem.

我們很高興看到，藉助微信龐大的用戶基礎，更多用戶如今可發現歌曲、生成歌單、透過簡單指令串流播放音樂，並即時與朋友分享喜愛曲目。這些舉措共同擴大了我們的用戶觸達，提升轉化與互動，同時也強化了內容在騰訊生態內的分發。

Second, we are also extending our user reach beyond mobile and PC into cross-device listening scenarios. During the quarter, we broadened our smart vehicle coverage through deeper collaborations with leading automakers, including Changan, Li Auto, and XPeng, and introduced the LLM pod search to deliver a smarter in-car experience.

第二，我們也將用戶觸達從手機與 PC 延伸至跨裝置的聆聽場景。本季度，我們透過與長安、理想、小鵬等頭部車企更深入的合作，擴大智慧車載覆蓋，並引入 LLM Pod 搜尋，提供更智慧的車內體驗。

We are also among the first music platform to integrate with HarmonyOS, expanding our reach within its fast-growing ecosystem. Such a move has strengthened our presence among HarmonyOS users and positioned us to capture new opportunities for further monetization.

我們也成為首批與 HarmonyOS 完成整合的音樂平台之一，進一步擴大在其快速成長生態中的觸達。此舉強化了我們在 HarmonyOS 用戶中的存在感，並使我們能把握更多進一步變現的新機會。

We are excited to welcome Ximalaya to the TME family. Music and audio naturally complement each other. They broaden our content offering and create more listening occasions throughout the day. This helps us strengthen our position as a comprehensive music and audio platform. We are still in the early stages of unlocking the full potential of this combination, and we are seeing significant opportunities ahead.

我們很高興歡迎喜馬拉雅加入 TME 大家庭。音樂與音訊天然互補。它們拓展了我們的內容供給，並在一天中創造更多聆聽場景。這有助於我們鞏固作為綜合性音樂與音訊平台的定位。我們仍處於釋放這一組合全部潛力的早期階段，並看到前方存在顯著機會。

By bringing together our complementary strengths, we can deliver compelling content to a much broader audience. We are starting to enrich our SVIP offering with premium audio content to create richer listening experiences. Over time, we also see opportunities to strengthen our advertising business and improve efficiency, leveraging our shared technology and infrastructure. We believe these efforts will create lasting value for our users, creators, partners, and shareholders.

透過整合彼此互補的優勢，我們能向更廣泛的受眾提供更具吸引力的內容。我們已開始以優質音訊內容豐富 SVIP 權益，打造更豐富的聆聽體驗。長期來看，我們也看到機會在共享技術與基礎設施的基礎上，強化廣告業務並提升效率。我們相信，這些努力將為用戶、創作者、合作夥伴與股東創造持久價值。

Finally, we are further elevating the SVIP value proposition by transforming it into multi-dimensional experience centered on IP engagement. Premium music remains at its core, now complemented by premium audio and a growing portfolio of IP-driven member benefits. This quarter, digital albums and tailored SVIP package continue to drive stronger member adoption and user engagement.

最後，我們正透過將 SVIP 轉型為以 IP 互動為核心的多維度體驗，進一步提升其價值主張。優質音樂仍是核心，並由優質音訊及日益擴大的 IP 驅動會員權益組合加以補充。本季度，數位專輯與定制化 SVIP 套餐持續推動更強的會員採納與用戶互動。

Packages for Renjun, Huang Renjun; Lay Zhang, Yixing; aespa, and the rest featured popular member benefits such as photo cards and NFC cards. We also expanded our Starlight Card lineup by adding artists from The Black Label, including Taeyang, Somi, MEOVV and the AllDay Project.

針對仁俊（黃仁俊）、Lay 張藝興、aespa 等推出的套餐，包含小卡與 NFC 卡等受歡迎的會員權益。我們也擴充了星光卡陣容，新增 The Black Label 旗下藝人，包括太陽（Taeyang）、Somi、MEOVV 以及 AllDay Project。

Meanwhile, collaborations with popular gaming IPs such as Wuthering Waves, Mingchao; and Light and Night, Guang Yu Ye Zhi Lian; brought new themed decorations to SVIP users, generating stronger user engagement and conversion. Together, these offerings contribute to highest growth in our SVIP user base, ARPPU, time spend, retention, as well as consumption of other premium ancillary experiences.

同時，與《鳴潮》（Wuthering Waves, Mingchao）以及《光與夜之戀》（Light and Night, Guang Yu Ye Zhi Lian）等熱門遊戲 IP 的合作，為 SVIP 用戶帶來新的主題裝扮，帶動更強的用戶互動與轉化。這些供給共同促成我們 SVIP 用戶基數、ARPPU、使用時長與留存的最高增長，同時也帶動其他高端增值體驗的消費。

They reinforce our value proposition of one membership, richer experiences. To conclude, our journey reflects how we have evolved from a gateway for content into a strategic platform that actively shapes the music and audio entertainment landscape. Our focus remains steadfast, creating deeper and more meaningful connections between creators, content, and audiences.

它們強化了我們「一個會員，更豐富體驗」的價值主張。總結而言，我們的歷程反映了我們如何從內容入口演進為一個積極塑造音樂與音訊娛樂格局的策略平台。我們的重點始終如一——在創作者、內容與受眾之間建立更深、更有意義的連結。

We are uniquely positioned and are confident that we can translate these deep connections into long-term, sustainable value across music and audio.

我們具備獨特優勢，並有信心將這些深度連結轉化為音樂與音訊領域長期、可持續的價值。

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

接下來，我想把電話交給我們的 CFO Shirley，為大家深入解讀財務表現。

Thank you, Ross, and greetings, everyone. Let me now turn to our financial results and an evolving competitive industry landscape. We delivered steady financial results in the second quarter of 2026 with 6% year-on-year revenue growth. Total revenues were RMB8.9 billion, up by 6% year on year, primarily driven by strong growth in revenues from music-related services.

謝謝你，Ross，各位好。接下來我將介紹我們的財務業績，以及不斷演變的競爭性產業格局。2026 年第二季度，我們實現穩健的財務表現，營收同比增長 6%。總營收為人民幣 89 億元，同比增長 6%，主要由音樂相關服務收入的強勁增長所帶動。

The consolidation of Ximalaya contributed approximately RMB0.4 billion to our overall revenues in the second quarter of 2026. Revenues from music-related services grew 11% year on year, driven by solid growth in revenues from membership services and offline performance-related services. Revenues from membership services were RMB4.8 billion, up by 8% year on year.

喜馬拉雅的併表在 2026 年第二季度為我們整體營收貢獻約人民幣 4 億元。音樂相關服務收入同比增長 11%，主要由會員服務收入及線下演出相關服務收入的穩健增長所驅動。會員服務收入為人民幣 48 億元，同比增長 8%。

In the second quarter of 2026, our SVIP membership program continues to expand. Our diversified SVIP privileges, such as artist membership, sales, photo cards, and the Starlight Pass, continued to drive SVIP user adoption and revenue growth. This quarter, we collaborated with our SVIP ambassadors to offer special packages and improve our SVIP offering.

在2026年第二季，我們的SVIP會員計畫持續擴張。我們多元化的SVIP權益（例如藝人會員、銷售、拍立得卡，以及星光通行證）持續帶動SVIP用戶採用與營收成長。本季，我們與SVIP大使合作推出特別套裝，並提升我們的SVIP產品供給。

The consolidation of Ximalaya also contributed to revenue growth in membership services. Within marketing and consumption services, offline performance-related service delivered robust results as we successfully staged several concerts for our strategically collaborated artists, including Silence Wang and Samantha Fish. Sales of digital albums also achieved solid performance, primarily driven by the launch of Jay Chou's album, Children of the Sun.

喜馬拉雅的併表也帶動了會員服務營收成長。在行銷與消費服務方面，線下演出相關服務表現強勁，我們成功為多位策略合作藝人舉辦多場演唱會，包括汪蘇瀧與Samantha Fish。數位專輯銷售亦取得穩健表現，主要受周杰倫專輯《太陽的孩子》上線帶動。

We continue to prioritize our IP-related offerings and build deeper collaborations with strategic artists across music promotion, offline performances, artist merchandise, and digital albums. In a challenging macro environment and a competitive market, our advertising business, especially the ad-supported model, are experiencing some headwinds, but continue to take actions to improve ad exposure, enhance entry rate and eCPM, and offer more engaging interactive products for users.

我們持續優先發展IP相關供給，並在音樂宣發、線下演出、藝人周邊與數位專輯等方面，與策略藝人建立更深度的合作。在具挑戰的宏觀環境與競爭市場下，我們的廣告業務（尤其是廣告支持模式）面臨一些逆風，但我們仍持續採取行動以提升廣告曝光、提高進入率與eCPM，並為用戶提供更具吸引力的互動產品。

We are also deepening collaboration with the Tencent ecosystem to reach more users. The consolidation of Ximalaya contributed to revenue growth in advertising positively, and we see growth potential in this area through leveraging our expanded contents and shared resources and technologies. Our gross margin in Q2 2026 was 44.2%, compared with 44.4% in the same period of last year. Revenue mix impacts our gross margin. Offline performance-related services continue to grow.

我們也在深化與騰訊生態的合作，以觸達更多用戶。喜馬拉雅的併表對廣告營收成長亦有正面貢獻；我們也看見透過運用擴充後的內容，以及共享資源與技術，在此領域的成長潛力。我們2026年第二季毛利率為44.2%，去年同期為44.4%。營收結構會影響毛利率。線下演出相關服務持續成長。

We are happy to see continued cost efficiency improvement for offline performances-related services. The consolidation of Ximalaya, after considering the amortization of intangible assets recorded on the purchase accounting, had a favorable impact on our gross margin this quarter. We are confident that our gross margin will remain competitive in the industry over time.

我們很高興看到線下演出相關服務的成本效率持續改善。喜馬拉雅的併表在考量購買會計下所確認之無形資產攤銷後，本季對我們毛利率帶來有利影響。我們有信心，隨著時間推移，我們的毛利率將持續維持在產業具競爭力的水準。

Moving on to operating expenses, they amounted to RMB1.3 billion, representing 14.5% of our total revenues in 2026, compared with 13.7% in the same period of last year. This quarter, we adjust our channel spending strategies by reducing channel spending and deepening collaborations with the Tencent ecosystem.

接著談營業費用：營業費用為人民幣13億元，占2026年總營收的14.5%，去年同期為13.7%。本季，我們透過降低渠道投放並深化與騰訊生態的合作，調整了渠道投放策略。

For example, we strengthened our cooperation with Weixin Video Accounts for content distribution and user conversion, and collaborated with Weixin XiaoWei to drive traffic to our lightweight APIs. The consolidation of Ximalaya, including the amortization of intangible assets recorded on the purchase accounting, drive the increase in operating expenses.

例如，我們強化與微信影片號在內容分發與用戶轉化方面的合作，並與微信小微合作，為我們的輕量化API導流。喜馬拉雅的併表（包含購買會計下所確認之無形資產攤銷）推動了營業費用的增加。

Going forward, we expect to dynamically adjust our channel spending strategies for all our business according to evolving market conditions with our requirements. Our net profit attributable to equity holders was RMB2.5 billion compared with RMB2.4 billion in the same period of 2025. Diluted earnings per ADS this quarter were RMB1.57.

展望未來，我們預期將依市場情況演變與自身需求，對各項業務的渠道投放策略進行動態調整。歸屬於公司權益持有人的淨利為人民幣25億元，去年同期為人民幣24億元。本季每股美國存託股（ADS）攤薄盈餘為人民幣1.57元。

For Q2 2026, our adjusted EBITDA was RMB3.3 billion, up by 5% year on year. Non-IFRS net profit attributable to equity holders of the company was RMB2.7 billion, up by 4% year on year. As of June 30, 2026, our combined balance of cash, cash equivalents, term deposits, and short-term investments was RMB44.2 billion as compared to RMB41 billion as of March 31, 2026. This combined balance was affected by changes in exchange rate of RMB to USD at different balance sheet dates.

2026年第二季，我們調整後EBITDA為人民幣33億元，年增5%。歸屬於公司權益持有人的非IFRS淨利為人民幣27億元，年增4%。截至2026年6月30日，我們的現金、現金等價物、定期存款及短期投資合計餘額為人民幣442億元，而截至2026年3月31日為人民幣410億元。該合計餘額會受到不同資產負債表日人民幣兌美元匯率變動的影響。

In addition to our strong operating cash flow, we maintain diversified finance options to meet our strategic expenditure requirements. Under the share repurchase program announced in March 2025, we have repurchased 43.5 million ADSs from the open market for total cash consideration of USD400 million in the second quarter of 2026. As part of our long-term commitment to shareholder returns, we remain on track to complete the 2025 stock repurchase program on time.

除強勁的經營現金流外，我們亦維持多元化的融資選項，以滿足策略性支出需求。依據我們於2025年3月公布的股份回購計畫，我們在2026年第二季於公開市場回購4,350萬股ADS，現金對價合計4億美元。作為我們對股東回報的長期承諾之一，我們仍按計畫如期完成2025年股票回購計畫。

Looking ahead, we will continue to focus on the development of SVIP membership, creating more innovative products, and providing more diversified benefits and privileges to our users. We also keep investing in quality content and IP development to build a comprehensive content ecosystem.

展望未來，我們將持續聚焦SVIP會員的發展，打造更多創新產品，並為用戶提供更多元的福利與權益。我們也將持續投入優質內容與IP開發，以建立完整的內容生態系。

Additionally, we will continue to deepen collaboration with Tencent ecosystem. The combination of Ximalaya brings exciting opportunities for us as a comprehensive music and audio platform. All these factors pave the way for long-term growth of our business.

此外，我們將持續深化與騰訊生態的合作。喜馬拉雅的整合，為我們作為綜合性音樂與音訊平台帶來令人振奮的機會。上述因素皆為我們業務的長期成長鋪路。

This concludes our prepared remarks. We are now ready to open the call for questions.

以上為我們的準備發言。我們現在準備開放提問。

Thank you, Shirley. (Event Instructions) Alex Liu, Bank of America.

謝謝你，Shirley。（活動指引）美國銀行 Alex Liu。

So my question, there are two questions. So the first question is on IP-related business. So IP has been a key driver for our revenue in the first half of 2026. And I was wondering how will the IP-related business drive the revenue growth for the rest of this year? And how does the momentum outlook looks like there?

我有兩個問題。第一個問題是關於IP相關業務。IP在2026年上半年一直是我們營收的重要驅動因素。我想請教，IP相關業務將如何在今年剩餘時間帶動營收成長？那邊的動能展望如何？

And the second question is really on Ximalaya consolidation. So now that Ximalaya is already part of the TME Group, how should we think about the financial outlook after Ximalaya's consolidation and its impact to the TME financials in the second half of this year?

第二個問題是關於喜馬拉雅的併表。既然喜馬拉雅已經成為TME集團的一部分，我們應如何看待喜馬拉雅併表後的財務展望，以及其在今年下半年對TME財務的影響？

(interpreted) Well, about your first question about IP-related business. As you can see that we have achieved a solid growth in our Q2 results, that is mainly due to our many years of deployment of our forward-looking strategies. We have already built a differentiated platform that features content plus platform that combines both offline and online services and products, also combines virtual and non-virtual products.

（口譯）好的，先回答你第一個關於IP相關業務的問題。如你所見，我們在第二季取得了穩健成長，這主要得益於我們多年來前瞻性策略的布局。我們已打造出差異化的平台，具備「內容+平台」特性，結合線上與線下的服務與產品，也結合虛擬與非虛擬產品。

So this is a complete music ecosystem, and that also can fully leverage the diversified IPs, which you can see also that we have a lot of contribution from marketing and consumption-related services. And all of this have contributed a lot to this quarter's results.

因此這是一個完整的音樂生態系，亦能充分發揮多元IP的價值；你也可以看到，我們在行銷與消費相關服務方面有相當多的貢獻。上述因素都對本季業績帶來很大助益。

For this year, competition, we do see some headwinds from the competitive area, be it in the membership and ads business. But our IP-related services, mainly like concerts and performance, are experiencing steady drop, mainly because of the following reasons.

就今年而言，在競爭方面，我們確實看到一些來自競爭環境的逆風，無論是在會員或廣告業務。但我們的IP相關服務（主要如演唱會與演出）呈現穩定下滑，主要原因如下。

Number one is our IP supply. Apart from our in-house research and development, we're also carrying out a lot of the deep collaboration with external suppliers, which help us build the high-quality IPs across the board. Second, you can also see that in terms of content collaboration, apart from that, the promotion, distribution and merchandise, derivative products are also in a very good position.

第一是我們的IP供給。除了內部研發之外，我們也與外部供應方展開大量深度合作，協助我們全面打造高品質IP。第二，你也可以看到，在內容合作之外，宣傳、分發以及周邊商品、衍生產品等也都處於非常好的狀態。

Number three is the diversified monetization. Through our platform, it would not only provide performance, concerts, or merchandise and through our member benefits, it could also contribute more to the increase of our SVIP numbers. And all of this have helped us build a very solid competitive moat.

第三是多元化變現。透過我們的平台，不僅能提供演出、演唱會或周邊商品，透過會員權益也能進一步帶動SVIP人數的提升。上述因素都幫助我們建立了非常穩固的競爭護城河。

About your second question on Ximalaya, we are very pleased to have Ximalaya to be part of TME family. And with Ximalaya on board, we have already build a one-stop music plus audio platform, which help us amplify the user base and also enrich the user profile and also increase time spent on our platform.

關於你第二個有關喜馬拉雅的問題，我們非常高興喜馬拉雅成為TME大家庭的一員。隨著喜馬拉雅加入，我們已建立一站式的「音樂+音訊」平台，有助於擴大用戶基礎、豐富用戶畫像，並提升用戶在平台上的使用時長。

So overall, in the medium to long run, we can see that Ximalaya's joining to TME family will also unlock more potential of future growth, and this has also set a solid base for future growth.

因此，總體而言，從中長期來看，我們可以看到喜馬拉雅加入TME大家庭也將釋放更多未來成長潛力，並為未來成長奠定堅實基礎。

Lincoln Kong, Goldman Sachs.

Lincoln Kong，高盛。

My question is about the subscription business. So basically, in the first half or second quarter, if we're excluding Ximalaya, we do see some moderation in subscription revenue growth. So how should we think about the prospects into the second half of the year? What's sort of the growth trend for SVIP or the overall ARPU to contribute to the overall growth? And can management also elaborate a bit more on the latest status in terms of the competition, especially against Soda?

我的問題關於訂閱業務。基本上，在上半年或第二季，如果我們排除喜馬拉雅，我們確實看到訂閱收入增長有所放緩。那麼我們應該如何看待下半年展望？SVIP或整體ARPU的增長趨勢如何，將如何貢獻整體增長？管理層也能否再多談一些最新的競爭態勢，特別是與Soda之間的競爭？

(interpreted)

（翻譯）

Well, with the competition in hand, we can see that the growth in music business is slowing down. Well, it's mainly some impact on traffic. But as we said, the most important thing is our collaboration with Weixin Video Accounts.

好的，關於競爭方面，我們可以看到音樂業務的增長正在放緩。主要是對流量帶來一些影響。但正如我們所說，最重要的是我們與微信視頻號的合作。

We're also very pleased to see that TME is already taking charge of the music business operation under Weixin Video Accounts. And the connection between Weixin Video Accounts and QQ app has already been very smooth. Well, if you look at revenue-wise, our high-value users, or SVIP, has not been heavily affected. What have been affected is for those casual and light users.

我們也非常高興看到，TME已經在微信視頻號下負責音樂業務的運營。而且微信視頻號與QQ應用之間的連接已經非常順暢。從收入角度看，我們的高價值用戶或SVIP並未受到明顯影響。受到影響的是那些休閒與輕度用戶。

So if you look at our subscribers, we got to stabilize our SVIP base and try to put more benefits into the SVIP package to increase its total number of bases. Well, this includes, like Cussion said, merchandise, performance concerts, and with Ximalaya, we can also provide more high-value long-form audios.

因此，如果看我們的訂閱用戶，我們需要穩定SVIP基本盤，並嘗試在SVIP套餐中加入更多權益，以提升其整體規模。這包括如Cussion所說的周邊商品、演出與演唱會；同時結合喜馬拉雅，我們也能提供更多高價值的長音頻內容。

Compared with our peers, our core music business is still having a solid and healthy growth. To acquire more light users, we are also having the potential from those light, small apps, especially QQ Music, Kugou Concept, and the Kugou free version, which we released this quarter.

與同業相比，我們的核心音樂業務仍保持穩健且健康的增長。為了獲取更多輕度用戶，我們也可以從一些輕量小應用中挖掘潛力，特別是QQ音樂、酷狗概念版，以及我們在本季度推出的酷狗免費版。

We believe through our deeper collaboration with Weixin Video Accounts by stabilizing our main business and tapping more potential from high-value service, I believe we can stay in a very good position against the competition.

我們相信，透過與微信視頻號更深度的合作，在穩定主業的同時挖掘更多高價值服務的潛力，我相信我們能在競爭中保持非常有利的位置。

In terms of competition, TME has never been upset from competition over the years. So the most important thing for us is to do our own job well. Well, compared with our peers with the consolidation of Ximalaya, we've already finished our transition from a music platform to a music plus audio comprehensive service platform.

在競爭方面，多年來TME從未因競爭而受到擾動。因此對我們而言，最重要的是把自己的事情做好。同時，隨著喜馬拉雅的整合，與同業相比，我們已完成從音樂平台向「音樂+音頻」綜合服務平台的轉型。

Compared with our peers in the future on TME platform, we can provide more enriching content, more channels and also more benefits that cover both online and offline. No matter what happens in competition, we'll stay firm on our own track of development. We also believe that our business will continue to have a stable and steady development.

未來在TME平台上，與同業相比，我們能提供更豐富的內容、更多渠道，以及覆蓋線上與線下的更多權益。無論競爭如何變化，我們都會堅定沿著自身的發展軌道前進。我們也相信，我們的業務將持續保持穩定、平穩的發展。

Alex Yao, JPMorgan.

Alex Yao，摩根大通。

Thank you management for taking my question. Especially thank you for playing such a soothing music ahead of the conference call. I really enjoy listening to Borrow a Little Light from Ordinary Days, and also all the best to the business transition.

感謝管理層回答我的問題。也特別感謝在電話會議開始前播放了如此舒緩的音樂。我很喜歡聽《Borrow a Little Light from Ordinary Days》，也祝業務轉型一切順利。

My question is about the integration and synergy with Weixin Xiaowei, the Weixin agent services. You guys highlighted the Weixin Xiaowei integration and upgraded AI agents acting as a personal DJs in QQ Music and Kugou. What measurable challenges have these products produced in discovery, listening time, retention, or conversion? And what is the intended monetization path? Does management primarily view AI as an engagement and cost efficiency tool or can AI become a direct revenue contributor?

我的問題關於與微信小微（微信代理服務）的整合與協同。你們提到微信小微的整合，以及在QQ音樂與酷狗中升級AI代理，作為個人DJ。這些產品在發現、收聽時長、留存或轉化方面帶來了哪些可量化的變化？以及預期的變現路徑是什麼？管理層主要將AI視為提升互動與成本效率的工具，還是AI也能成為直接的收入貢獻者？

(interpreted) Well, first of all, Weixin Xiaowei is still under testing. Though it's still in an early testing stage, we're very happy to see that users are using it to send their own song list, share songs, and they're using it very frequently.

（翻譯）首先，微信小微仍在測試中。雖然仍處於早期測試階段，但我們很高興看到用戶用它來發送自己的歌單、分享歌曲，而且使用頻率很高。

Well, with our app internal operating, especially with the integration of HY3 and -- plus our music AI agent, and we can tell that it does increase the retention especially for the high-value users. Well, recently, you can also try some new features on [micro] version, especially two new features.

在我們App內部運營方面，特別是結合HY3以及——再加上我們的音樂AI代理，我們可以看到它確實提升了留存，尤其是對高價值用戶。近期你也可以在[micro]版本上嘗試一些新功能，特別是兩個新功能。

One is you can swipe to listen to music, and second is the AI DJ that you can use it like a companion DJ. And with our latest algorithm, the GPT model, and we can see that it also increased engagement of recommendation. And our recognition has also been adopted by one of the top-tier conferences.

第一個是可以滑動來聽音樂；第二個是AI DJ，你可以把它當作陪伴型DJ來使用。結合我們最新的算法與GPT模型，我們看到推薦互動也有所提升。而且我們的識別能力也已被某個頂級會議採用。

What about the monetization of AI agent? I think the business model is very clear, and we will use that to increase engagement and activity of our users, so they will use it more often to share and listen to songs, especially for those paid users, that will further drive the growth of subscription.

那AI代理如何變現？我認為商業模式非常清晰：我們會用它來提升用戶的互動與活躍度，讓他們更頻繁地分享與聽歌，尤其是付費用戶，這將進一步帶動訂閱增長。

About AI technology in general, we talked about this topic in the previous quarter's call as well. Well, AI itself compared with others in nature is also a tool to improve efficiency and cut costs. However, what is special about us is on the consumer side, we can use AI, especially large language models, to generate music.

關於AI技術整體，我們在上一季度的電話會議也談過這個話題。AI本身相較於其他事物，其本質也是提升效率、降低成本的工具。但我們的特別之處在於消費者端，我們可以使用AI，尤其是大語言模型，來生成音樂。

And over the past couple of years, we already used that in our app like Kugou AIK. And QQ also using AI to generate songs. And all of these efforts have also generated very good commercial returns. We hope that we can use AI technologies to tap more commercial opportunities and increase our revenue.

在過去幾年，我們已在酷狗AIK等App功能中使用了這項能力。QQ也在使用AI生成歌曲。所有這些努力也帶來了非常好的商業回報。我們希望能利用AI技術挖掘更多商業機會並提升收入。

Citigroup, Alicia Yap.

花旗集團，Alicia Yap。

(interpreted) I wonder if management can share their insight on what is the competitive advantage and competitive moat of TME on the music and also the long-form audio IP and also the overall IP strategy?

（翻譯）我想請管理層分享一下，TME在音樂、長音頻IP以及整體IP策略方面的競爭優勢與護城河是什麼？

(interpreted) Well, first of all, about the exclusive content, we are not in a position to talk about competitive moat because according to SAMR rules, we cannot use those exclusively on content. However, compared with our peers, our competitive advantage is there. First of all, Ximalaya has a lot of user legacy that covers white collar and female users in Tier 1 and Tier 2 cities.

（翻譯）首先，關於獨家內容，我們不便談所謂的競爭護城河，因為根據市場監管總局（SAMR）的規定，我們不能在內容上採取獨家方式。不過，與同業相比，我們的競爭優勢仍然存在。首先，喜馬拉雅擁有大量的用戶沉澱，覆蓋一二線城市的白領與女性用戶。

As you probably can see, our [kids] business on Ximalaya is still taking considerable market share and especially the story part has also complement with our own business.

如你所見，喜馬拉雅的[兒童]業務仍佔有相當可觀的市場份額，尤其是故事類內容也與我們自身業務形成互補。

Another part is the Internet literature, especially the normal select audio books. We will continue to deepen our collaboration with China literature given. And all the new works will turn into audio books and will be efficiently distributed on our platform.

另一部分是網絡文學，尤其是常規精選有聲書。我們將在既有基礎上持續深化與閱文的合作。所有新作品都將轉化為有聲書，並在我們平台上高效分發。

Recently (inaudible), so platinum was (inaudible). And we also believe that comic plays and audios can also complement with it. In addition, we also have a deep collaboration with Tencent Video for some long-form videos like (inaudible). So once we found those hit shows on Tencent Video, especially those as plays, we also spot there is a great consumption scenarios on Ximalaya.

近期（聽不清），所以白金是（聽不清）。我們也相信，漫畫劇與音頻內容也能與之形成互補。此外，我們也與騰訊視頻在一些長視頻方面有深度合作，例如（聽不清）。因此，一旦我們在騰訊視頻上發現那些爆款劇集，特別是作為劇集的內容，我們也看到在喜馬拉雅上存在很好的消費場景。

So with the Tencent Video for those hit shows, we can turn those into audio books very quickly and turn it online. And we can also attract -- have some traffic diverted from Tencent Video. And for the audio resources on Ximalaya platform, we will also license it to Tencent Video, so that Tencent Video users can also listen to this audio content.

因此，針對騰訊視頻上的那些爆款劇集，我們可以很快把它們製作成有聲書並上線。同時，我們也可以從騰訊視頻導入一部分流量。而對於喜馬拉雅平台上的音頻資源，我們也會授權給騰訊視頻，讓騰訊視頻用戶也能收聽這些音頻內容。

In a nutshell, long-form audio is new IP-centric business, and we'll keep a focus on classic kid stories, the Internet literature from China Literature and the app level shows from Tencent Video. We believe all of this will have very good commercial outlook.

簡而言之，長音頻是一個以新IP為核心的業務，我們將持續聚焦於經典兒童故事、來自閱文集團的中國網絡文學，以及騰訊視頻的應用級節目。我們相信這些都將具有非常好的商業前景。

(interpreted) About music creation, TME has also deployed many forward-looking strategies. Apart from our collaboration with the domestic and international labels, we coproduce a lot of artworks. We also set up some joint ventures, and we also spend a lot of efforts in-house studio in music.

(interpreted) 關於音樂創作，TME也部署了許多前瞻性策略。除了與國內外唱片公司合作之外，我們也共同製作了大量作品。我們還成立了一些合資公司，同時也在內部音樂工作室投入了大量精力。

(interpreted) In addition, we will also continue to forge a closer collaboration within the Tencent ecosystem with gaming, with Tencent Video. And over the years, we have generated many hit songs. Apart form music creation. We're also entering into deeper into artist or singer generation or nurturing and artist management. For example, we partnered with SM Entertainment from Korea so that it could help us better nurture more talented artists.

(interpreted) 此外，我們也將持續在騰訊生態內與遊戲、騰訊視頻等業務建立更緊密的合作。多年來，我們打造了許多熱門歌曲。除了音樂創作之外，我們也在更深入地進入藝人/歌手孵化培養以及藝人管理領域。例如，我們與韓國SM娛樂合作，以幫助我們更好地培養更多有才華的藝人。

So with strong creation and singer nurturing, we can also help a lot of streamers to make their own concerts, and we can also organize a lot of IP-based events. And all of this will further contribute to the business growth. So with our [integrated] or one-stop platform, we will further nurture more high-quality IP.

因此，憑藉強大的創作能力與歌手培養體系，我們也能幫助許多主播舉辦自己的演唱會，並且可以組織大量基於IP的活動。這些都將進一步推動業務增長。依託我們的「一體化」或一站式平台，我們將進一步孵化更多高品質IP。

And if you look at our business performance over the past several years, such rapid growth is already a proven record of huge potential of this business. Ultimately, it was -- with more benefits, it will further contribute to the growth of our subscription or SVIP growth.

如果你回顧我們過去幾年的業務表現，如此快速的增長已經證明了這項業務的巨大潛力。最終，隨著更多收益的釋放，也將進一步推動我們訂閱用戶或SVIP的增長。

Maggie, CLSA.

Maggie，CLSA。

My first question is related to margin. In the second quarter, sales and marketing increase appeared to be quite modest this year over year, even taking into consideration of Ximalaya, which was believed to entail higher sales and marketing cost ratio. So could management help us better understand the driver behind that? And what's the overall gross margin and net margin outlook in the third quarter and fourth quarter upon a full quarter consolidation of Ximalaya?

我的第一個問題與利潤率有關。第二季度，銷售與市場費用同比增幅看起來相當溫和，即使考慮到喜馬拉雅（據稱其銷售與市場費用率更高）。管理層能否幫助我們更好地理解背後的驅動因素？另外，在喜馬拉雅完整並表一個季度的情況下，第三季度和第四季度的整體毛利率與淨利率展望如何？

And my second question is related to shareholder return. So our total cash, short-term long-term deposit reached RMB44 billion. And by the end of second quarter, it's almost 40% of our current market cap. Could management share with us your latest thoughts on enhancing shareholder return going forward?

我的第二個問題與股東回報有關。我們的現金、短期及長期存款合計達到人民幣440億元。截至第二季度末，這幾乎相當於我們當前市值的40%。管理層能否分享一下未來提升股東回報的最新想法？

(interpreted) Well first question about the slight decline of our GP margin is mainly due to the following reasons. Number one is our offline business is growing very rapidly, which means that it takes a bigger share of our total revenue.

(interpreted) 好的，第一個問題關於我們毛利率小幅下降，主要原因如下。第一，我們的線下業務增長非常快，這意味著它在總收入中的占比更高。

And plus, our offline artist brokerage business is also growing very rapidly and also taking a bigger share of our overall revenue and plus concerts and live performance, which also contribute positively to our GP margin. And these are why our GP margin is just declined slightly.

此外，我們的線下藝人經紀業務也增長很快，在整體收入中的占比也在提升；再加上演唱會和現場演出，這些對毛利率是正向貢獻的。因此，我們的毛利率只是小幅下降。

Well, it looks like quarter over quarter, the slight decline of GP margin is mostly the seasonal changes of the offline performance business because the offline performance in Q2 is greatly higher than Q1. Considering the amortization of intangible assets of Ximalaya, it has some positive impact over our GP margin.

從環比來看，毛利率的小幅下降主要是線下演出業務的季節性變化，因為第二季度的線下演出明顯高於第一季度。考慮到喜馬拉雅無形資產的攤銷，這對我們的毛利率有一定正面影響。

In the long run, with the consolidation of Ximalaya, we continue to build our music plus audio platform and to have a more enriching ecosystem and to provide a more differentiated user experience. And with that, we believe we can increase the retention conversion rate. Our projection into the second half of our revenue expectation, we project that our GP margin will be decreasing slightly year-over-year.

從長期來看，隨著喜馬拉雅並表，我們將持續打造「音樂+音頻」平台，構建更豐富的生態，並提供更具差異化的用戶體驗。在此基礎上，我們相信可以提升留存與轉化率。對於下半年收入的預期，我們預計毛利率將同比小幅下降。

About sales expenses, I would say in Q2, we have controlled the sales expenses because in general, we have changed our channel expenses strategy, which means that we will seek more projects with higher ROI. And in addition, we're also strengthening our collaboration within the Tencent ecosystem, Tencent Video, Tencent Pay and Tencent Gaming.

關於銷售費用，我想說第二季度我們對銷售費用進行了控制，因為整體上我們調整了渠道投放策略，也就是會尋找更多ROI更高的項目。此外，我們也在加強與騰訊生態內的合作，包括騰訊視頻、騰訊支付和騰訊遊戲。

And as you can see in our collaboration with Tencent Video, it has already helped us increase the traffic and conversion. Well, with the consolidation of Ximalaya, basically the input in June has already suspended. But with the technology and platform convergence, and we have resumed the expanding for Ximalaya but with the same ROI standard since July.

正如你所看到的，我們與騰訊視頻的合作已經幫助我們提升了流量與轉化。隨著喜馬拉雅並表，基本上6月的投入已經暫停。但隨著技術與平台的融合，我們自7月起已恢復對喜馬拉雅的擴張投入，同時仍然遵循相同的ROI標準。

We will not just spend broadly in marketing, and we'll fine-tune our strategy in marketing and to do more targeted and stay focused on our ecosystem and to try to have more value from our users. So for the whole year, our sales expenses will go up a little bit. And operating expenses will slightly go up, considering the loans, our net margin for the whole year will go down slightly and EBITDA will go up -- will edge up little bit.

我們不會在市場營銷上大手筆廣撒網，而是會微調營銷策略，做更有針對性的投放，並聚焦於我們的生態，努力從用戶中獲取更高價值。因此，全年銷售費用會小幅上升。考慮到貸款因素，營業費用也會略有上升；全年淨利率將小幅下降，而EBITDA將上升——會小幅提升。

About shareholder return, currently, we're still under that 1 billion shareholder return program. In Q2 alone, we already completed USD400 million share buyback. The management is very confident in the future of the company. So apart from finishing the rest of the previous share buyback program, we're also preparing for another round of share. We will try to use different buyback approaches to increase shareholders.

關於股東回報，目前我們仍在執行10億美元的股東回報計劃。僅在第二季度，我們就已完成4億美元的股份回購。管理層對公司的未來非常有信心。因此，除了完成上一輪回購計劃的剩餘部分之外，我們也在準備新一輪股份回購。我們將嘗試採用不同的回購方式來提升股東回報。

Thank you. In the interest of time, I would like to wrap up today's call. Thank you again for joining us today. If you have any further questions, please feel free [to contact] our IR team. This concludes today's call. We look forward to speaking with you next quarter.

謝謝。由於時間關係，我想在此結束今天的電話會議。再次感謝各位今天的參與。如有任何進一步問題，請隨時[聯繫]我們的投資者關係團隊。今天的電話會議到此結束。我們期待在下個季度與各位再度交流。

Thank you and bye.

謝謝，再見。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

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.

本紀要中標註為(interpreted)的部分，為現場電話會議中由在場口譯員所翻譯的發言。該口譯員由主辦本次活動的公司提供。