Q1 2026 Tencent Music Entertainment Group Earnings Call

May 12, 2026

Speaker #1: Milton Tu, head of IR. We announced our quarterly financial results earlier today before the US market opened. The earnings release is now available on our IR website, and via newsletter services.

Speaker #1: During today's call, you'll hear from Mr. Cussion Pang, our executive chairman, and Mr. Ross Liang, our CEO, who will share an overview of our company's strategies and business updates.

Speaker #1: Then Ms. Shirley Hu, our CFO, will discuss our financial results before we open the call for questions. 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.

Speaker #1: Please note that we'll discuss non-IFRS measures today, which are more authority-explained and reconciled to the most comparable measures. Reported under IFRS in our earnings release and filings for the SEC.

Speaker #1: All participants are muted at this time. After management's remarks, there'll be a Q&A session, and please be advised that today's calls be recorded. With that, I'll now turn the call over to Cussion.

Speaker #1: Executive chairman of TME, Cussion, please.

Speaker #2: Thank you, Millicent. Hello, everyone, and thank you for joining our call today. Despite an increasingly competitive landscape, in the music streaming industry, we delivered a steady performance overall this quarter.

Speaker #2: Our growth is increasingly driven by diversified monetization across the music value chain. With the offline concert-related business achieving another quarter of triple-digit year-over-year growth, we will continue to accelerate the development of our multi-dimensional commercialization model, which is deeply rooted in our commitment to cultivating a vibrant and legitimate music ecosystem.

Speaker #2: While AI is rapidly expanding the supply of content, it is also introducing significant market noise and new industry challenges. The portfolio of unauthorized AI-generated content not only creates headwinds for our music subscription growth, but also undermines creators' rights and dilutes the long-term value of the music ecosystem as a whole.

Speaker #2: In response, we are working closely with creators, rights holders, and regulators to lead and champagne robust copyright protection efforts. While the nature of these challenges is unique, to the AI era, we have successfully navigated major copyright and IP transitions before.

Speaker #2: And have consistently been at the forefront of those efforts. We remain confident in our ability to adapt, lead by example, and help shape the future framework for intellectual property protection in the age of AI.

Speaker #2: This commitment has further sharpened our focus on what truly drives long-term value and sustainable growth. Today, we are now convinced then ever that original human creativity and premium music IPs are the ultimate differentiators that's why we are evolving beyond traditional streaming services into an integrated music ecosystem that further unlocks the value of every piece of IP.

Speaker #2: This holistic approach is designed to deepen engagement and expand user wallet share. Against this backdrop, we have further optimized our catalog, ensuring that our licensed and proprietary content offers valuable emotional responses reasonize that users quietly.

Speaker #2: Let me share two examples. First, we further enhance our classic music catalog. Capitalizing on the enduring demand and extended lifecycles of timeless hits, we recently renewed contracts with labels, including JVR Music, Lincoln Records, and Mokabai Baby Music Limited.

Speaker #2: Securing continued access to iconic catalogs from artists such as Jay Chow, Zhou Jialun, Karen Mo Wenwei, Harlin Yu, Yu Changqing, and Angela Zhang Xiaohan further reinforcing our leadership in premium copyrights.

Speaker #2: We also deepened our strategic partnership with TF Entertainment, providing users with a 30-day head start benefit for upcoming releases and exporting collaboration across physical products, live performances, and other IP-related opportunities.

Speaker #2: Second, the streaming share of our in-house new releases has seen a steady rise. Reflecting our ongoing efforts to enhance production capabilities, a notable example is our collaboration with Sony Pictures on the Chinese film song "The Starfixers" for the scientific blockbuster "Project Hail Mary." Performed by Jawson, the song grinded strong traction upon release, quickly topping multiple charts across our platforms.

Speaker #2: Across our business, AI has become a key enabler. Accelerating time to market, improving production efficiencies, and enhancing user experience, importantly, it complements not replaces, human creativity and further reinforce the scarcity and value of premium IPs.

Speaker #2: Let me walk you through how we are actively embracing AI to further enhance our content ecosystem and in turn, unlock additional value from legacy IPs.

Speaker #2: First, we provide creators with tools to reshape every stage of the creative process. For instance, our one-stop AI music production tool, Venice, stimulates the full cycle songwriting process of professional musicians.

Speaker #2: From lyrics compositions and arrangement to vocal performance and mixing. This empowers creators to produce high-quality work more efficiently and at lower cost. Second, as we bring more legitimate AI-generated music onto our platform, we are pleased to see that high-quality AI works can in turn revitalize classic IPs and endure them to younger generations.

Speaker #2: Some AI covers of classic hits are often among the most popular tracks. By reimagining iconic songs with innovative styles and vocals, this reinterpretations sparked renewed interest.

Speaker #2: Driving listeners back to the original versions and amplifying the visibility and commercial value of legacy IPs. A small premium IPs drive on our platform.

Speaker #2: They serve as a powerful engine for our broader communicationizations efforts. By building historical holistic pen IP-related music experiences, we continue to lead industry consumption and grow at scale.

Speaker #2: Whether through immersive live performances, or innovative fan-based economy, we are elevating music's influence while deepening watershed. Specifically, first, our highly loyal user ecosystem continues to attract leading artists and IPs seeking deeper collaboration.

Speaker #2: By strengthening strategic partnerships, we extend IP value chains through integrated virtual and physical offerings. A key example is our collaboration with Jay Chow on his digital album, "Children of the Sun." Where we launched a package that offerings combining the album, SVIP memberships, and physical collectibles.

Speaker #2: Supported by a nationwide offline campaign across 45 cities, the release achieved a strong viral traction, topped the major charts, surpassed 1,000 million renminbi in sales, and drove meaningful SVIP conversions.

Speaker #2: We also deepened the partnership with leading artists including and who has recent releases delivered a strong fan engagement and commercial performances. Second, we also continue to strengthen cross-cultural reach through different offline partnerships with leading domestic and international labels and artists.

Speaker #2: This quarter, we delivered multiple friendship concerts, which drawing over 10,000 attendees, maintaining a strong execution standard in live performances. Notably, Baby Monsters concert in Taiwan China and NCT Wish concerts in Hong Kong China.

Speaker #2: Attractive both core fans and border audience expanding their reach. Third, we are cultivating a primary artist roses to amplify the global footprint of Chinese music.

Speaker #2: This is amplified by Silence Wang, Wang Sulong's debut world tour across Asia and North America and Guy Zhouyan's first large-scale show in Singapore. Domestically, concerts by Ruopang, Pan Weibo, Tia Wei, Yuan Yawei, Angela Zhang, Zhang Xiaohan, Jane Zhang, Zhang Liangying, and Zhang Yuan further deepened fans' engagement.

Speaker #2: Before concluding, I would like to share our ESG progress. In April, we published over our 2025 ESG report. Over the past years, we stepped up in created empowerment, product inclusively.

Speaker #2: And really changed sustainability. This efforts reinforce the long-term value and resilience of our ecosystem. As reflected in the ESG rating upgrades, and external recognition.

Speaker #2: In closing, we are encouraged by the progress we have made, and the challenges we are elevating the strategic priority and reinvestment in copyright governance.

Speaker #2: Taking a more resolute face to safeguard the long-term health of the music industry. We remain committed to advancing the border creative economy unlocking new opportunities and driving enduring long-term value.

Speaker #2: Now, I would like to hand the call over to Ross for an update on our overall platform development. Ross, please go ahead. Thank you.

Speaker #1: Thank you, Cussion. Hello, everyone. In our increasing competitive landscape, we are building a more resonant platform brought by our content and the platform dual engine.

Speaker #1: During user directionation, engagement, and the lifetime value. As we strengthen our competitive edge and further deflationate our offerings, we are transitioning to a membership-based model.

Speaker #1: That goes beyond content subscriptions to deliver more immersive music experiences. I will share more details shortly. For today's call, I would like to bring my focus on two areas.

Speaker #1: User growth and monetization efficiency improvement resulting from better services. On the user front, maintaining a health top of final remains our foundation. Let me share some updates.

Speaker #1: First, we are excited to further deepen our integration with the WeChat ecosystem to broaden reach and streamline user convention. By embedding a pathway within video accounts, we facilitated a seamless transition from short video music discovery to full track playback on our platform.

Speaker #1: This also elevates musician exposure, helping them convert casual short video viewers into a loyal fan base on our platform. Second, for Google, we are competitive pressure is a bit more acute.

Speaker #1: We lost barriers to enter through more premium and add memberships. Third, we leveraged AI to drive engagement with improved recommendation system, efficient discovery, enabled by AI agents, and easier playlist creation.

Speaker #1: Growth in music asides, boosted engagement. We also saw exponential growth in both AI-driven messenger and playback DAO. At the same time, personalized features such as SIM avatars, player innovations, and interactive tools led to a deeper sense of belonging on our platform.

Speaker #1: Turning on to how we are unlocking greater IP value and increasing user lifetime value, we continue to execute existing tiered plans. As I mentioned earlier, we launched a new initiative to transition to a membership-based concept with enriched content and the rights offerings.

Speaker #1: Although still in its early stage, we say strong long-term potential in IP-driven offerings through enhanced benefits and integrated rights. First, SYP membership continue to stay stronger adoption and rotation thanks to our refined operations and innovative benefits.

Speaker #1: For example, we are part of CCT, Tangjian Ci as our first cross-platform SYP family brand ambassador. This strategic partnership significantly enhances the per se value and the public awareness of our premium offerings.

Speaker #1: In addition, to further directionate our SYP premium offerings, we continue to expand fan-based benefits and audio privileges. On the content front, we introduced China Limited Edition digital albums combined with physical collectible for leading K-pop artists such as Blackpink, EXO, and IVY.

Speaker #1: On the platform and the product front, we launched TME Connect, enabling high-fidelity audio transmission across multiple devices. Google Music launched the live house sound effects and the QQ Music further deepened the collaboration with STUBI to become the first music platform in China to support STUBI SA4 audio format.

Speaker #1: We also STUBI House, an offline audio experience space for artists like Charlie Puth, Silence One, Wang Sulong, and Blackpink. Second, we pioneered more IP-centric memberships to capture diverse user demands.

Speaker #1: A key milestone this quarter was the launch of our inaugural fan club, Romance Universe, with Silence One, Wang Sulong, offering priority ticket access, unique content, and artist-centric perks.

Speaker #1: That resonates well with fans. At the same time, we continue to expand artists' reach on Bubble, welcome Suriqi as Bubble's first Sony Music artist, and enhance product features such as in-chat search functionality with further strengthened user engagement and retention.

Speaker #1: Last but not incremental growth by scaling IP-driven offline offerings. Particularly with artists' merchandise, for instance, we served as the sole distributor for Transform Project, top Deng Lun Shao Nian Zu He's debut physical album and other sold-out merchandise such as Yu Qi Song Yu Qi, Skinny New Year gift box, and Hu Xia, plus collectibles.

Speaker #1: Beyond merchandise, we brought the idol Cities of Sins, China, debut exhibition to life in collaboration with Cube. During a multi-dimensional immersive experience for fans, to conclude, we are challenges remain we are confident in our path forward.

Speaker #1: We will continue shaping our competitive edge to strengthen our vibrant platform, one that attracts users deepens engagement and unlocks new monetization opportunities. With that, I would like to turn the call over to Shirley or CFO for a deep dive into our financials.

Speaker #2: Thank you, Ross. And greetings, everyone. Let me now turn to our financial results. And the challenging environment we have delivered steady financial results in the first quarter of 2026 with 7% year-on-year revenue growth.

Speaker #2: Revenues from music-related services grew 12% year-on-year, driven by solid growth in revenues from membership services. And offline performances-related services supplemented by growth in revenues from advertising services.

Speaker #2: Revenues from membership services were R&B 4.6 billion, up by 7% year-on-year. In the first quarter of 2026, this quarter we started to present membership service revenues to be better reflected the nature of our membership business.

Speaker #2: Revenues from membership services primarily consisted of membership fees paid for membership benefits and privileges within music-related services. Over time, some IP-related benefits such as artist merchandise and offline performances have emerged as key drivers of SYP adoption.

Speaker #2: Additionally, our newly launched fan club membership further enriches fan experience and is a great example for innovation integrated product with content and the platform strategy.

Speaker #2: This collaboration we have built with the strategical artists across music promotion offline performances artist-related merchandise and fan club membership provide more immersive experience for fans and help enrich privileges of our membership programs.

Speaker #2: Building win-win relationships for everyone. Additionally, we delivered solid year-on-year growth in advertising revenues driven by growth of 80 supported model and a sponsorship advertising.

Speaker #2: Our increased number of paying users and the chunk of casual users created more challenges for our advertising business in the increasingly competitive market. We have taken actions and improved ad exposure, lowered entry barriers, and offered more engaging interactive ads tasks for users.

Speaker #2: As our engaged growth engine, offline performances-related services have achieved strong results in Q1. We have positioned our strategical artists such as Wei Fang, Silence One, and Guy on high-profile stages across the master and overseas markets.

Speaker #2: Effective expanding their global influence and further unlocking their long-term commercial value. Also, we have hosted the flagship concerts with leading K-pop groups including Baby Monster and NCT WISH.

Speaker #2: Revenues from social entertainment services and others were R&B 1.4 billion, down by 11% year-on-year. Our gross margin in Q1 2026 was 44.9%, up by 0.8 percentage points year-on-year.

Speaker #2: The year-on-year increase was primarily due to increased in revenues from membership services. And advertising services. Along with decreased channel fees, additionally, we are happy to see cost efficiency improvement for IP-related services.

Speaker #2: In the long run, we are confident that our gross margin will remain competitive in the industry or it may fluctuate quarter over quarter due to seasonality.

Speaker #2: Moving on to operating expenses, they amounted to R&B 1.2 billion, representing 50.3% of our total revenues in Q1 2026 compared with 15.5% in the same period of last year.

Speaker #2: Selling and marketing expenses were R&B 271 million, up by 36% year-on-year. In response to the competition and to mitigated impacts of user charts, we increased channel spending this quarter.

Speaker #2: Operationally, we have improved the relevance of target audience while keeping high ROI level in the industry. Going forward, we expect to dynamically adjust our channel spending strategies according to evolving market conditions with ROI requirements.

Speaker #2: Meanwhile, we expect to increase content promotion and continue to provide high-quality content to our users which concurrently helps grow users on our platform. General and administrative expenses were R&B 140 million, and remained relatively stable compared with the same period of 2025.

Speaker #2: Our net profit attributable to equity holders was R&B 2.1 billion, compared with R&B 4.3 billion in the same period of 2025. As we have recognized again of R&B 2.4 billion being the disposal of an associate in the first quarter of 2025, our diluted earnings per ADS this quarter were R&B 1.34.

Speaker #2: This quarter, we started disclosing non-FIS metrics adjusted EBITDA to better reflect our core business operation results. For Q1 2026, our adjusted EBITDA was R&B 2.8 billion, up by 10% year-on-year.

Speaker #2: Non-FIS net profit attributable to equity holders of the company was R&B 2.3 billion, up by 7% year-on-year. As of March 31, 2026, our combined balance of cash equivalents term deposit and short-term investment was R&B 41 billion, as compared to R&B 38 billion as of December 31, 2025.

Speaker #2: This combined balance was affected by changes in the exchange rate of R&B to USD at different balance sheet dates. In March 2026, we declared a cash dividend of US dollar 0.12 per ordinary share or US dollar 0.24 per ADS.

Speaker #2: For the year ended December 31, 2025, and the cash payment for the dividend of US 317 million was made in April 2026. In addition, as part of our long-term commitment to shareholder returns, we plan to complete the two-year stock repurchase program that will announce in March 2025 on time.

Speaker #2: Finally, I'll conclude with some remarks on the outlooks. Looking ahead while challenges exist, our long-term strategy and commitment to investment in content and technology remain unchanged.

Sha Ming: For ADS. For the year ended 31 December 2025, the cash payment for the dividend of $317 million was made in April 2026. In addition, as part of our long-term commitment to shareholder returns, we plan to complete the 2-year stock repurchase program that we announced in March 2025 on time. Finally, I'll conclude with some remarks on the outlook. Looking ahead, while challenges exist, our long-term strategy and commitment to investment in content and technology remain unchanged. We continue to focus on IP development for the long-life health of our business and industry. Through comprehensive collaborations with our strategic partners, we will continue to bring new benefits and privileges to our users and create more innovative products. All these factors enable us to build a richer and more dynamic music and entertainment ecosystem. This concludes our prepared remarks.

Shirley Hu: For ADS. For the year ended 31 December 2025, the cash payment for the dividend of $317 million was made in April 2026. In addition, as part of our long-term commitment to shareholder returns, we plan to complete the 2-year stock repurchase program that we announced in March 2025 on time. Finally, I'll conclude with some remarks on the outlook. Looking ahead, while challenges exist, our long-term strategy and commitment to investment in content and technology remain unchanged. We continue to focus on IP development for the long-life health of our business and industry. Through comprehensive collaborations with our strategic partners, we will continue to bring new benefits and privileges to our users and create more innovative products. All these factors enable us to build a richer and more dynamic music and entertainment ecosystem. This concludes our prepared remarks.

Speaker #1: School for ABS for the year ended December 31, 2025. And the cash payment to the dividend of $317 million was made in April 2026.

Speaker #2: We continue to focus on IP development for the long run health of our business and industry. And through comprehensive collaborations with our strategical partners, we will continue to bring new benefits and privileges to our users and create more innovative products.

Speaker #1: In addition, as part of our long-term commitment to shareholder returns, we plan to complete the two-year stock repurchase program that we will announce in March 2025 on time.

Speaker #2: All these factors enable us to build a richer and more dynamic music and entertainment ecosystem. This concludes our prepared remarks. We are now ready to open the call for questions.

Speaker #1: Finally, I'll conclude with some remarks on the outlook. Looking ahead, where challenges exist, our long-term strategy and commitment to investment in content and technology remain unchanged.

Speaker #2: Thank you, Shirley. If you are dialed in by phone, please press 5 to ask a question and then 6 to unmute yourself. If you are accessing the call from the Tencent meeting or vote meeting application, please click the raise hand button at the bottom left.

Speaker #1: We continue to focus on IP development for the long-term health of our business and industry. And, through comprehensive collaborations with our strategic partners, we will continue to bring new benefits and privileges to our users and create more innovative products.

Speaker #2: For the participant for the benefits of today's call, please limit yourself to one question and then if you have more, you can go back to the queue.

Speaker #2: The first question comes to mind from Lincoln Kong from Goldman Sachs. And Lincoln, your line is open.

Speaker #1: 好, 谢谢观众接受我的提问。那我也是看到我们一季度取得了很稳健的一个成绩。那刚才这个观众其实有说到就是我们现在是有一个 holistic approach of the ecosystem。那我想问的话就是我们这个音乐相关的这些收入在26年比如说余下的这段时间的一个展望，尤其包括就是会员和非会员收入的一个主要的一些增长的 driver，以及大家肯定也比较关心就是会员业务目前的这个竞争的一些态势的变化。然后这个讲到这个 ecosystem 相关就今天刚才也看到就是喜马拉雅的这个收购的一个批准。我不知道就这个东西观众现在可不可以有一些分享它对我们这个 TME 的整体的这个生态的一个帮助。和结合应该是怎么样的，谢谢。

Speaker #1: All these factors enable us to build a richer and more dynamic music and entertainment ecosystem. This concludes our prepared remarks. We are now ready to open the call for questions.

Shelly: We are now ready to open the call for questions.

Shirley Hu: We are now ready to open the call for questions.

Speaker #1: Thank you, Shelley. If you are dialing in by phone, please press 5 to ask a question and then 6 to unmute yourself. If you are accessing the call from the Tencent Meeting or Vote Meeting application, please click the raise hand button at the bottom left.

Shelly: Thank you, Shelly. If you are dialing by phone, please press five to ask a question, and then six to unmute yourself. If you are accessing the call from the Tencent Meeting or Zoom Meeting application, please click the Raise Hand button at the bottom left. For the benefit of today's call, please limit yourself to one question, and then if you have more, you can go back to the queue. The first question comes to the line from Lincoln Kong, from Goldman Sachs. Lincoln, your line is open.

Operator: Thank you, Shelly. If you are dialing by phone, please press five to ask a question, and then six to unmute yourself. If you are accessing the call from the Tencent Meeting or Zoom Meeting application, please click the Raise Hand button at the bottom left. For the benefit of today's call, please limit yourself to one question, and then if you have more, you can go back to the queue. The first question comes to the line from Lincoln Kong, from Goldman Sachs. Lincoln, your line is open.

Speaker #1: For the benefit of today's call, please limit yourself to one question, and then if you have more, you can go back to the queue.

Speaker #1: The first question comes to mind from Lincoln Kong from Goldman Sachs. And Lincoln, your line is open.

Speaker #2: 好，谢谢观众接受我的提问。那我也是看到我们一季度取得了很稳健的一个成绩。那刚才这个观众其实有说到，就是我们现在是由于一个 holistic approach of the ecosystem。那我想问的话就是我们这个音乐相关的这些收入，在 2026 年比如说余下的这段时间的一个展望，尤其包括就是会员和非会员收入的一个主要的一些增长的 driver，以及大家可能也比较关心就是会员业务目前的这个竞争的一些态势的一些变化。然后这个讲到这个 ecosystem 相关，就今天刚才也看到就是喜马拉雅的这个收购的一个批准。我不知道就这个东西观众现在可不可以有一些分享，它对我们这个 TME 的整体的这个生态的一个帮助和结合应该是怎么样的，谢谢。

Lincoln Kong: Thank you very much for giving this opportunity. First question. First of all, congrats on the good performance in Q1. Just now you said you're gonna take a holistic approach, also use, make full use of whole ecosystem to improve our business. My question first of all is about the revenue guidance for the remainder of 2026. If you can give us an outlook on the member and non-membership business and what are key drivers for future growth. Especially, as we know that the competition remains intense, especially for the membership businesses.

Speaker #3: Thank you very much for giving this opportunity to ask first question. Just now, first of all, congrats on the good performance in Q1. And just now you said you're going to take a holistic approach and also use the next few years of whole ecosystem to improve our business.

Speaker #3: I'm a question, first of all, is about the revenue guidance for the remainder of 2026. It'll give us an outlook on the member and non-member ship business and what are key drivers for future growth and especially as we know that the competition remains intense especially for the membership businesses.

Speaker #3: And speaking of the eco system, we have noticed that the Himalaya still has been approved by the regulator and it can give us an update on how it can improve our performance in the whole ecosystem.

Speaker #3: Thank you very much for giving this opportunity to ask the first question. First of all, congratulations on the good performance in Q1. Just now, you said you're going to take a holistic approach.

Speaker #1: Okay, 谢谢 Lincoln 的那个提问。那我先就按照我们当前未来的那个 guidance 先做一些的陈述。其实在产能展在当前的那个比较充满挑战的环境底下，TME 在第一季的季度我们依然是实现了非常稳健的一个业绩的一个增长的。主要是我们坚持了平台与内容生态双引擎的一个策略，帮助我们构建了一个不可以替代的一站式的音乐的娱乐生态。本季度我们看到音乐非会员的业务的增长是比较强劲的。演出相关的业务再次实现了三位数的同比的增长。

Speaker #3: So, using the next few years of the whole ecosystem to improve our business. My first question is about the revenue guidance for the remainder of 2026.

Speaker #3: It'll give us an outlook on the member and non-membership business, and what are key drivers for future growth, especially as we know that the competition remains intense.

Speaker #3: Especially for the membership businesses. And speaking of the ecosystem, we have noticed that Himalaya still has been approved by the regulator. And it can give us an update on how it can improve our performance in the whole ecosystem.

Lincoln Kong: Speaking of the ecosystem, we have noticed that the Himalaya deal has been approved by the regulator, can you give us some update on how it can improve our performance in the whole ecosystem?

Speaker #3: Thank you, Lincoln, for a question. First, I want to say a few words about the guidance for the remainder of 2026. Despite the challenging environment to achieve the steady performance in Q1, this is attributed to our economy plus platform due-anger strategy, which has helped us build an irreplaceable one-stop music entertainment system.

Speaker #2: Okay, 谢谢 Lincoln 的那个提问。那我先就按照我们当前未来的那个 guidance 先做一些的陈述。其实在产能展在当前的那个比较充满挑战的环境底下，TME 在 Q1 的季度我们依然是实现了非常稳健的一个业绩的增长。主要是我们坚持了平台与内容生态双引擎的一个策略，帮助我们构建了一个不可以替代的一站式的音乐的娱乐生态。本季度我们看到音乐非会员的业务的增长是比较强劲的。演出相关的业务再次实现了三位数的同比增长。

Sha Ming: Thank you, Lincoln, for your question. First of all, I'll say a few words about the guidance for the remainder of 2026. Despite a challenging environment to achieve the steady performance in Q1, this is attributed to our economy across platform new engine strategy, which has helped us build an irreplaceable one-stop music entertainment system. This quarter, our non-membership growth was robust, and our performance-related businesses once again achieved a triple-digit year on year growth. However, competitive pressure remains significant. Disorderly price competition within the industry, coupled with the rampant issue of pirated content driven by AI, has introduced uncertainties regarding the future revenue growth of traditional streaming services. Moving forward, our operational focus will center on three key areas.

Ross Liang: Thank you, Lincoln, for your question. First of all, I'll say a few words about the guidance for the remainder of 2026. Despite a challenging environment to achieve the steady performance in Q1, this is attributed to our economy across platform new engine strategy, which has helped us build an irreplaceable one-stop music entertainment system. This quarter, our non-membership growth was robust, and our performance-related businesses once again achieved a triple-digit year on year growth. However, competitive pressure remains significant. Disorderly price competition within the industry, coupled with the rampant issue of pirated content driven by AI, has introduced uncertainties regarding the future revenue growth of traditional streaming services. Moving forward, our operational focus will center on three key areas.

Speaker #3: This quarter, non-membership growth was robust and our performance-related businesses once again achieved a triple digit year-on-year growth.

Speaker #1: 我们当前面对的竞争的压力是比较大的，但一方面是来源于竞争平台在用户流量以及无序的价格的竞争。叠加了 AI 带来的盗版问题，内容的问题。所以我们后续的音乐流媒体相关的业务收入的增长会带来一定的不确定性。那我们后续会在运营重点上围绕以下的三个方面。

Speaker #3: Thank you, Lincoln, for the question. First, I want to say a few words about the guidance for the remainder of 2026. Despite the challenging environment to achieve the aesthetic performance in Q1, this is attributed to our content-plus-platform view engine strategy, which has helped us build an irreplaceable one-stop music entertainment system.

Speaker #3: However, competitive pressure remains significant. This orderly price competition within the industry coupled with the rampant issue of targeted content driven by AI has introduced uncertainties regarding the future revenue growth of traditional streaming services.

Speaker #3: This quarter, non-membership growth was robust, and our performance-related businesses once again achieved triple-digit year-on-year growth.

Speaker #3: Moving forward, our operational focus will center on three key areas.

Speaker #2: 我们当前面对的竞争的压力是比较大的。但一方面是来源于竞争平台在用户流量以及无序的价格的竞争。叠加了 AI 带来的盗版问题，内容的问题。对我们后续的音乐流媒体相关的业务收入的增长会带来一定的不确定性。那我们后续会在运营重点上围绕以下的三个方面。

Speaker #1: 第一点呢，我们是大力的加大我们的维权的力度。我们用到 AI，但作为提升内容生产效率的工具，但我们不会让 AI 成为侵权的借口。针对行业当前的乱象呢，我们已经建立了一个专项的维权的机制，坚决的维护平台版权方以及创作者的合法的权益。那我们也欢迎技术的创新，但尽一切的能力来挤压那个洗歌、倒歌、蹭热度等等的侵权行为。

Speaker #3: However, competitive pressure remains significant. This orderly price competition within the industry, coupled with the rampant issue of pirated content driven by AI, has introduced uncertainties regarding the future revenue growth of traditional streaming services.

Speaker #3: First of all, strengthening enforcement to prevent AI from becoming an excuse for inferences. In response to industry chaos, we have established a dedicated rights protection mechanism to resolutely safeguard the legal interests of our platform, copyright owners, and creators.

Speaker #3: Moving forward, our operational focus will center on three key areas.

Speaker #2: 第一点呢，我们是大力的加大我们的维权的力度。我们用到 AI，但作为提升内容生产效率的工具，但我们不会让 AI 成为侵权的借口。针对行业当前的乱象呢，我们已经建立了一个专项的维权的机制，坚决的维护平台版权方以及创作者的合法的权益。那我们也欢迎技术的创新，但尽一切的能力来挤压那个洗歌、倒歌、蹭热度等等的侵权行为。

Speaker #3: We welcome innovation, but we'll do everything in our power to suppress songwashing and other infringing behaviors.

Speaker #1: 第二个方向呢，我们会在用户的流量方面，我们已经在加大还有加深跟腾讯体系的合作。今年的 7 月份开始呢，我们已经开始加大了跟微信视频号的深度战略合作，打通了短视频与音乐的消费场景。视频号用户听到好的歌的歌曲以后呢，他可以一键的跳转到 QQ 音乐直接收听，帮助用户实现从发现音乐，而且从内容的到增版的收听，收藏以及高品质的消费的无缝连接。音乐的创作者呢，也可以获得更多的宣传还有曝光的机会。

Speaker #3: First of all, strengthening enforcement to prevent AI from becoming an excuse for inferences. In response to industry chaos, we have established to resolutely safeguard the legal interests of our platform, copyright owners, and creators.

Sha Ming: First of all, strengthening enforcement to prevent AI from becoming an excuse for infringements. In response to industry chaos, we have established a dedicated rights protection mechanism to resolutely safeguard the legal interests of our platform, copyright owners, and creators. We welcome tech innovation. We'll do everything in our power to suppress song washing and other infringing behaviors.

Ross Liang: First of all, strengthening enforcement to prevent AI from becoming an excuse for infringements. In response to industry chaos, we have established a dedicated rights protection mechanism to resolutely safeguard the legal interests of our platform, copyright owners, and creators. We welcome tech innovation. We'll do everything in our power to suppress song washing and other infringing behaviors.

Speaker #3: We welcome tech innovation, but we'll do everything in our power to suppress songwashing and other infringing behaviors.

Speaker #3: Second, expanding top of funnel traffic through deeper integration with the Tencent ecosystem. April this year, we entered into a deep strategic partnership with WeChat apps.

Sha Ming: 第二方面，我们会在用户的流量方面，我们已经在加大还有加深跟腾讯体系的合作。今年的七月份开始，我们已经开始加大了跟微信视频号的深度战略合作，打通了短视频与音乐的消费场景。视频号用户听到好的歌曲以后，他可以一键跳转到QQ音乐直接收听，帮助用户实现从发现音乐，而且从内容到正版的收听、收藏以及高品质的消费的无缝连接。音乐的创作者也可以获得更多的宣传，还有曝光的机会。

Ross Liang: 第二方面，我们会在用户的流量方面，我们已经在加大还有加深跟腾讯体系的合作。今年的七月份开始，我们已经开始加大了跟微信视频号的深度战略合作，打通了短视频与音乐的消费场景。视频号用户听到好的歌曲以后，他可以一键跳转到QQ音乐直接收听，帮助用户实现从发现音乐，而且从内容到正版的收听、收藏以及高品质的消费的无缝连接。音乐的创作者也可以获得更多的宣传，还有曝光的机会。

Speaker #2: 第二个方向呢，我们会在用户的流量方面，我们已经在加大还有加深跟腾讯体系的合作。今年的七月份开始呢，我们已经开始加大了跟微信视频号的深度战略合作，打通了短视频与音乐的消费场景。视频号用户听到好的歌的歌曲以后呢，他可以一键的跳转到 QQ 音乐直接收听。帮助用户实现从发现音乐，而且从内容的到增版的收听，收藏以及高品质的消费的无缝连接。音乐的创作者呢，也可以获得更多的宣传还有曝光的机会。

Speaker #3: By bridging short-form video with music consumption, WeChat channels users can now jump directly to QQ Music with one single click when they discover music they like.

Speaker #3: This creates a seamless connection from discovery to legitimate listening, collection, and high-quality consumption, while providing music creators with greater promotion and exposure opportunities.

Speaker #1: 第三方面呢，我们会继续利用好我们在平台上的繁荣的 IP 生态，深化用户一站式的音乐消费的心智。多年来的积累了让我们不仅仅拥有了海量的优质的内容储备，更拥有了很多生产好歌的创作者。在 IP 以及追随这些艺人的用户群，为了充分的去释放这个生态的长期的价值呢，我们正通过 IP 的规模的扩张以及价值的深挖两个维度来拓宽我们的竞争的优势。

Speaker #3: Second, expanding top-of-funnel traffic through deeper integration with the Tencent ecosystem. In April this year, we entered into a deep strategic partnership with WeChat apps.

[Company Representative] (Tencent Music): Second, expanding top of funnel traffic through deeper integration with the Tencent ecosystem. April this year, we entered into a deep strategic partnership with the WeChat Channels. By bridging short-form video with music consumption, WeChat Channels users can now jump directly to QQ Music with one single click when they discover music they like. This creates a seamless connection from discovery to legitimate listening, collection, and high-quality consumption, while providing music creators with greater promotion and exposure opportunities.

[Translator]: Second, expanding top of funnel traffic through deeper integration with the Tencent ecosystem. April this year, we entered into a deep strategic partnership with the WeChat Channels. By bridging short-form video with music consumption, WeChat Channels users can now jump directly to QQ Music with one single click when they discover music they like. This creates a seamless connection from discovery to legitimate listening, collection, and high-quality consumption, while providing music creators with greater promotion and exposure opportunities.

Speaker #3: Our bridging short-form video with music consumption WeChat Channel users can now jump directly to QQ Music with one single click when they discover music they like.

Speaker #3: Third, leveraging our flourishing IP ecosystem to solidify the one-stop music consumption mindset. Years of accumulation have provided us not only with a massive library of premium content, but also with the creators behind the hits and the loyal fan base that follow them.

Sha Ming: 第三方面，我们会继续利用好我们在平台上的繁荣的IP生态，深化用户以站设的音乐消费的新致。多年来的积累，让我们不仅仅拥有了海量的优质的内容储备，更拥有了很多生产好歌的创作者，在IP以及追随这些艺人的用户群。为了充分地去释放这个生态的长期的价值，我们正通过IP的规模的扩张以及价值的深挖两个维度来拓宽我们的竞争的优势。

Ross Liang: 第三方面，我们会继续利用好我们在平台上的繁荣的IP生态，深化用户以站设的音乐消费的新致。多年来的积累，让我们不仅仅拥有了海量的优质的内容储备，更拥有了很多生产好歌的创作者，在IP以及追随这些艺人的用户群。为了充分地去释放这个生态的长期的价值，我们正通过IP的规模的扩张以及价值的深挖两个维度来拓宽我们的竞争的优势。

Speaker #2: 第三方面呢，我们会继续利用好我们在平台上的繁荣的 IP 生态，深化用户一站式的音乐消费的心智。多年来的积累了让我们不仅仅拥有了海量的优质的内容储备，更拥有了很多生产好歌的创作者。在 IP 以及追随这些艺人的用户群，为了充分的去释放这个生态的长期的价值呢，我们正通过 IP 的规模的扩张以及价值的深挖两个维度来拓宽我们的竞争的优势。

Speaker #3: To fully unlock the long-term value of this ecosystem, we're broadening our competitive advantage through two dimensions. IP expansion and value deepening.

Speaker #1: 首先，我们在那个扩大 IP 的矩阵里面，我们会不断的扩大合作艺人的 IP 的矩阵的同时，我们也会发力的去构建我们既有艺人的体系。目前我们的生态呢，已经聚拢了非常多的头部的以及非常出色的音乐人，在我们的中国里面有很多的非常优秀的艺人已经在我们的矩阵里面。第二个呢，价值呢，就是我们的价值的延伸。我们既有的艺人的体系的建立之后，我们也让我们可以更灵活的去打通音乐创作到商业授权、品牌合作和全产业链的那个链条，显著的提升我们 IP 的变现的那个效率。以我们与战略合作的艺人像汪苏泷的合作作为例子，合作内容已经从早期的围绕歌曲本身的内容首发权益，拓展到现在帮他举办那个个人的演唱会、实体周边的销售，以及本季度我们也携手打造了首个 Fan Club 的会员的服务，围绕以艺人为核心的构建专属的粉丝的体验，包括我们优先入场还有独特的粉丝福利等等。

[Company Representative] (Tencent Music): Third, leveraging our flourishing IP ecosystem to solidify the one-stop music consumption mindset. Years of accumulation has provided us not only with a massive library of premium content, but also with the creators behind the hits and the loyal fan base that follow them. To fully unlock the long-term value of this ecosystem, we're broadening our competitive advantage through two dimensions, IP expansion and value deepening.

[Translator]: Third, leveraging our flourishing IP ecosystem to solidify the one-stop music consumption mindset. Years of accumulation has provided us not only with a massive library of premium content, but also with the creators behind the hits and the loyal fan base that follow them. To fully unlock the long-term value of this ecosystem, we're broadening our competitive advantage through two dimensions, IP expansion and value deepening.

Speaker #3: To fully unlock the long-term value of this ecosystem, we're broadening our synthetic advantage through two dimensions: IP expansion and value deepening.

Speaker #2: 首先，我们在扩大 IP 的矩阵里面，会不断地扩大合作艺人的 IP 矩阵的同时，也会发力去构建我们自有艺人的体系。目前，我们的生态已经聚拢了非常多的头部以及非常出色的音乐人，在中国有很多非常优秀的艺人已经在我们的矩阵里面。第二个价值，就是我们的价值延伸。在既有艺人体系建立之后，我们可以更灵活地打通音乐创作到商业授权、品牌合作的全产业链链条，显著提升我们 IP 的变现效率。以我们与战略合作艺人，比如汪苏泷的合作为例，合作内容已经从早期围绕歌曲本身的内容首发权益，拓展到现在帮助他举办个人演唱会、实体周边销售，以及本季度我们也携手打造了首个 Fan Club 会员服务，围绕艺人为核心构建专属粉丝体验，包括优先入场和独特的粉丝福利等等。

Sha Ming: 首先，我们在扩大IP的矩阵里面，我们会不断地扩大合作艺人、艺人的IP的矩阵的同时，我们也会发力地去构建我们具有艺人的体系。目前我们的生态呢，已经聚拢了非常多的头部的以及非常出色的音乐人，在我们的中国里面，有很多非常优秀的艺人已经在我们的矩阵里面。第二个呢，价值呢，就是我们的价值的延伸。我们具有的艺人的体系的建立之后，我们也让我们可以更灵活地去打通音乐创作到商业授权、品牌合作和全产业链的那个链条，显著地提升我们IP的变现的那个效率。以我们与战略合作的艺人像汪苏泷的合作作为例子，合作内容已经从早期的围绕歌曲本身的内容首发权益，拓展到现在帮他举办一个个人的演唱会、实体周边的销售，以及本季度我们也携手打造了首个Fan Club的会员的服务，围绕以艺人为核心的构建专属的粉丝的体验，包括我们优先入场，还有独特的粉丝福利等等。

Ross Liang: 首先，我们在扩大IP的矩阵里面，我们会不断地扩大合作艺人、艺人的IP的矩阵的同时，我们也会发力地去构建我们具有艺人的体系。目前我们的生态呢，已经聚拢了非常多的头部的以及非常出色的音乐人，在我们的中国里面，有很多非常优秀的艺人已经在我们的矩阵里面。第二个呢，价值呢，就是我们的价值的延伸。我们具有的艺人的体系的建立之后，我们也让我们可以更灵活地去打通音乐创作到商业授权、品牌合作和全产业链的那个链条，显著地提升我们IP的变现的那个效率。以我们与战略合作的艺人像汪苏泷的合作作为例子，合作内容已经从早期的围绕歌曲本身的内容首发权益，拓展到现在帮他举办一个个人的演唱会、实体周边的销售，以及本季度我们也携手打造了首个Fan Club的会员的服务，围绕以艺人为核心的构建专属的粉丝的体验，包括我们优先入场，还有独特的粉丝福利等等。

Speaker #3: Well, first, expanding the IP matrix. While continuously expanding our matrix of partnered artists, we're also building our in-house artist system. Currently, our ecosystem features numerous talented artists.

Speaker #3: Second is expanding the value chain. Establishing an in-house artist system allows us to flexibly integrate the entire industrial chain. From music creation to commercial licensing and brand collaborations.

Speaker #3: Significantly improving IP monetization efficiency. Taking our strategic partnership with the Silent Swamp as an example, our collaboration has evolved from early digital release rights to organizing concert tours and selling physical merchandise.

Speaker #3: This quarter, we also co-launched our first fan-based membership service, building a dedicated artist-centric fan experience that includes priority entry and unique fan benefits.

[Company Representative] (Tencent Music): Well, first, expanding the IP matrix. While continuously expanding our matrix of partner artists, we're also building our in-house artist system. Currently, our ecosystem features numerous talented artists. The second is expanding the value chains. Establishing an in-house artist system allows us to flexibly integrate the entire industrial chain, from music creation to commercial licensing, and brand collaborations, significantly improving IP monetization efficiency. Taking our strategic partnership with Silent Swan as an example, our collaboration has evolved from early digital release rights to organizing concert tours and selling physical merchandise. This quarter, we also co-launched our first fan-based membership service, building a dedicated artist-centric fan experience that includes priority entry and unique fan benefits.

[Translator]: Well, first, expanding the IP matrix. While continuously expanding our matrix of partner artists, we're also building our in-house artist system. Currently, our ecosystem features numerous talented artists. The second is expanding the value chains. Establishing an in-house artist system allows us to flexibly integrate the entire industrial chain, from music creation to commercial licensing, and brand collaborations, significantly improving IP monetization efficiency. Taking our strategic partnership with Silent Swan as an example, our collaboration has evolved from early digital release rights to organizing concert tours and selling physical merchandise. This quarter, we also co-launched our first fan-based membership service, building a dedicated artist-centric fan experience that includes priority entry and unique fan benefits.

Speaker #1: 所以最后呢，我们对于未来的那个业务的展望，我们是理解到会受到那个竞争的影响。我们也预期会员以及广告的业务的增速的短期内会有一些的波动。但当我们集中精力做好我们的内容的维权，加大用户的引流还有那个维护，在围绕 AI 的综合的打造还有变现呢，我们对长期的业绩的表现还是比较乐观的。而且能够保持一个稳健的长期的增长。

Speaker #3: Second is expanding the value chain. Establishing an in-house artist system allows us to flexibly integrate the entire industry chain, from music creation to commercial licensing and brand collaborations.

Speaker #3: Looking at a year as a whole, we expect some short-term volatility in a growth rate of our membership and advertising business due to competition, but we will try to be proactive in safeguarding our copyright and try to divert more traffic from the ecosystem in the long run.

Speaker #3: This quarter, we also co-launched our first fan-based membership service, building a dedicated artist-centric fan experience that includes priority entry and unique fan benefits.

Sha Ming: 所以最后，我们对于未来的业务展望，我们理解到会受到竞争的影响，我们也预期会员以及广告的业务的增速在短期内会有一些波动。但当我们集中精力做好我们的内容的维权，加大用户的引流还有维护，在围绕AI的综合打造，还有变现，我们对长期的业绩的表现还是比较乐观的，而且能够保持一个稳健的长期的增长。

Ross Liang: 所以最后，我们对于未来的业务展望，我们理解到会受到竞争的影响，我们也预期会员以及广告的业务的增速在短期内会有一些波动。但当我们集中精力做好我们的内容的维权，加大用户的引流还有维护，在围绕AI的综合打造，还有变现，我们对长期的业绩的表现还是比较乐观的，而且能够保持一个稳健的长期的增长。

Speaker #2: 所以最后呢，我们对于未来的那个业务的展望，我们是理解到会受到那个竞争的影响。我们也预期会员以及广告的业务的增速的短期内会有一些的波动。但当我们集中精力做好我们的内容的维权，加大用户的引流还有那个维护，在围绕 AI 的综合的打造还有变现呢，我们对长期的业绩的表现还是比较乐观的。而且能够保持一个稳健的长期的增长。

Speaker #3: We remain optimistic about our comprehensive IP-based monetization and which we expect to maintain steady growth.

Speaker #2: 好，对于戏码呢，因为今天刚刚我们获得了一个批准，所以我们在我们也是跟腾讯集团一起，我们也将严格的去遵守国家市场进入总局的对我们这个这里面的各项的公告里面所有各项要求。我们认真的会去履行各项承诺，确保交易能够依法合规的推进。

Speaker #3: Looking at the year as a whole, we've seen some short-term volatility in the growth rate of our membership and advertising business due to competition, but we will try to be proactive in safeguarding our copyright and try to divert more traffic from the ecosystem in the long run.

[Company Representative] (Tencent Music): Looking at a year as a whole, we expect some short-term volatility in growth rate of our membership and advertising business due to competition, but we will try to be proactive in safeguarding our copyright and try to divert more traffic from the ecosystem. In the long run, we remain optimistic about our comprehensive IP-based monetization and which we expect to maintain steady growth.

[Translator]: Looking at a year as a whole, we expect some short-term volatility in growth rate of our membership and advertising business due to competition, but we will try to be proactive in safeguarding our copyright and try to divert more traffic from the ecosystem. In the long run, we remain optimistic about our comprehensive IP-based monetization and which we expect to maintain steady growth.

Speaker #3: We just received the notice of the approval from SAMR and along with the Tencent Group, TME and Tencent Group will follow strictly the requirements of every MR in order all the commitments to ensure the transaction will be proceeded accordingly and legally.

Speaker #3: We remain optimistic about our comprehensive IP-based monetization, and we expect to maintain steady growth.

Speaker #4: Thank you. And the next question comes from Alicia Yap from Citigroup Alicia, please. Alicia, your line is open. Are you with us?

Sha Ming: 好，对于这码呢，因为今天刚刚我们获得了一个批准，所以我们在我们，我们也是跟腾讯集团一起，我们也将严格地去遵守国家市场监督管理总局

Ross Liang: 好，对于这码呢，因为今天刚刚我们获得了一个批准，所以我们在我们，我们也是跟腾讯集团一起，我们也将严格地去遵守国家市场监督管理总局

Sha Ming: 对我们这个公告里面说的各项要求，我们认真地会去履行各项承诺，确保交易能够依法合规地推进。

Ross Liang: 对我们这个公告里面说的各项要求，我们认真地会去履行各项承诺，确保交易能够依法合规地推进。

Speaker #5: Oh, hello? Yeah. Can you hear me now?

Speaker #4: Yes, we can.

Speaker #5: Okay. 感谢管理层接收我的提问，也恭喜这个稳定强劲的业绩。那个我的问题是关于这个包月这一块，想请管理层能否给我们就是划分一下这个就是不同的这个等级，譬如说尤其是广告订阅用户的这个增长，还有这个用户的留存，大概是怎么样的一个情况。然后另外呢，就是这个我们这种新增的 Fan Club 和 Bubble 的这种新型的这个订阅服务，它们的贡献或者是以后的增长潜力大概是怎么样的。然后未来会不会这些对于整个 R2 的这个增长是一个重要的驱动力。然后我知道这个喜马拉雅交易可能刚刚批准了，就是不知道管理层有没有一个初步的就是说后面的一些长音频订阅的一些初步的计划跟我们分享。我自己翻译一下。 So thanks management for taking my questions. My question is related to subscription. Can management share some detailed about the subscription tiering split?

Speaker #3: We just received the notice of the approval from SAMR, and along with the Tencent Group, TME and Tencent Group will follow strictly the requirements of SAMR in order for all the commitments to ensure the transaction will be proceeded accordingly and legally.

[Company Representative] (Tencent Music): We just received the notice of the approval from SAMR, and along with the Tencent Group, TME and Tencent Group will follow strictly the requirements of SAMR and honor all the commitments to ensure the transaction will be proceeded accordingly and legally.

[Translator]: We just received the notice of the approval from SAMR, and along with the Tencent Group, TME and Tencent Group will follow strictly the requirements of SAMR and honor all the commitments to ensure the transaction will be proceeded accordingly and legally.

Speaker #1: Thank you. And the next question comes from Alicia Yap from Citigroup. Alicia, please. Alicia, your line is open. Are you with us?

Operator: Thank you. The next question comes from Alicia Yap from Citigroup. Alicia, please. Alicia, your line is open. Are you with us?

Speaker #4: Oh, hello? Yeah. Can you hear me now?

Alicia Yap: Oh, hello. Yeah. Can you hear me now?

Speaker #1: Yes, we can.

Operator: Yes, we can.

Speaker #4: Okay. 感谢管理层接受我的提问，也恭喜这个稳定强劲的业绩。我的问题是关于包月这一块，想请管理层能否给我们划分一下不同的等级，譬如说尤其是广告订阅用户的增长，还有用户的留存，大概是怎么样的一个情况。然后另外，这种新增的 Fan Club 和 Bubble 这种新型的订阅服务，它们的贡献或者以后的增长潜力大概是怎么样的。未来这些会不会对整个 up 的增长是一个重要的驱动力。然后我知道喜马拉雅交易可能刚刚批准了，不知道管理层有没有初步的一些长音频订阅计划可以跟我们分享。我自己翻译一下。 So, thanks management for taking my questions. My question is related to subscription. Can management share some details about the subscription tiering split?

Alicia Yap: 感谢管理层接受我的提问，也恭喜这个稳定强劲的业绩。那个我的问题是关于这个包月这一块，想请管理层能否给我们就是划分一下这个不同的等级，比如说尤其是广告订阅用户的这个增长，还有这个用户的留存大概是怎么样的一个情况。然后另外呢，就是我们这种新增的Fan Club和Bubble的这种新型的这个订阅服务，他们的贡献或者是以后的增长潜力大概是怎么样的，然后未来会不会这些对于整个ARPU的这个增长是一个重要的驱动力。然后我知道这个喜马拉雅交易可能刚刚批准了，就是不知道管理层有没有一个初步的，就是说后面的一些长音频订阅的一些初步的计划跟我们分享。我自己翻译一下。Thanks management for taking my questions.

Speaker #5: What is the growth status for the advertising subscription user? And also what are their retention rate? And the contribution and the growth potential from those newer subscription like the Fan Club and Bubble, will this become a meaningful driver for the blended R2 growth in the future?

Speaker #5: And then with the pending approval of the Himalaya transaction, any preliminary plan on the long-form audio subscription plan in the future? Thank you.

Alicia Yap: My question is related to subscription. Can management share some details about the subscription tiering split? What is the growth status for the advertising subscription user? Also what are their retention rates. The contribution and the growth potential from those newer subscription like the Fan Club and Bubble. Will this become a meaningful driver for the blended ARPU growth in the future? With the pending approval of this Himalaya transaction, any preliminary plan on the long form audio subscription plan, you know, in the future? Thank you.

Speaker #1: Yes, 所以我们现在来看，首先我们要清楚我们目前的整个今年定位，我们是以目前的集团，我们是要作为一个一站式的综合的音乐服务平台。

Speaker #4: What is the growth status for the advertising subscription user? And also, what are their retention rates? And the contribution and the growth potential from those newer subscriptions like the Fan Club and Bubble—will this become a meaningful driver for the blended ARPU growth in the future?

Speaker #3: First of all, the positioning of TME this year is to make a one-stop music service platform.

Speaker #2: 因为从酷狗音乐和Q音乐这边，我们其实已经发展了20多年。这么多年来，我们其实持续是以音乐为核心去拓展我们的业务版图。

Speaker #3: Google Music and QQ Music has been developing for over two decades. And over the years, we have been expanding our business based on music.

Speaker #4: And then, with the pending approval of the Himalaya transaction, do you have any preliminary plans for the long-form audio subscription plan in the future? Thank you.

Speaker #2: 所以在这么多年来，其实我们已经比较好的从传统的音乐订阅业务已经延伸到了更广泛和丰富的服务的品类。

Sha Ming: 所以我们现在来看，首先我们要清楚我们目前的整个今年，今年定位，我们自己目前的集团，我们是要作为一个一站式的综合的音乐服务平台。

Ross Liang: 所以我们现在来看，首先我们要清楚我们目前的整个今年，今年定位，我们自己目前的集团，我们是要作为一个一站式的综合的音乐服务平台。

Speaker #2: Yes. 所以我们现在来看，首先我们要清楚我们目前的整个今年定位，我们是以目前的集团，我们是做要作为一个一站式的综合的音乐服务平台。

Speaker #3: Three years, we have evolved from doing traditional streaming business to a broader category of business.

Speaker #2: 所以刚才你那个问题来说，就是我们的，因为这几集会员的留存，我们目前并没有公布。但是我们可以说，因为这个几集会员的提供使得整体的会员的留存是一个相当于一个比较稳定的。

[Company Representative] (Tencent Music): First of all, the positioning of TME this year is to make a one stop music service platform.

[Translator]: First of all, the positioning of TME this year is to make a one stop music service platform.

Speaker #3: First of all, the positioning of TME this year is to make a one-stop music service platform.

Speaker #2: 因为从酷狗音乐和Q音乐这边，我们其实已经发展了20多年，这么多年来我们其实持续是以音乐为核心去拓展我们的业务版图。

Sha Ming: 因为从酷狗音乐和QQ音乐这边，我们其实已经发展了二十多年，这么多年来，我们其实持续是以音乐为核心去拓展我们的业务版图。

Ross Liang: 因为从酷狗音乐和QQ音乐这边，我们其实已经发展了二十多年，这么多年来，我们其实持续是以音乐为核心去拓展我们的业务版图。

Speaker #3: As to your question about user retention for different tiers of users, we have not disclosed this number. But in general, it's very stable.

Speaker #3: Google Music and QQ Music have been developing for over two decades. Over the years, we have been expanding our business based on music.

[Company Representative] (Tencent Music): Kugou Music and QQ Music has been developing for over two decades, and over the years we have been expanding our business based on music.

[Translator]: Kugou Music and QQ Music has been developing for over two decades, and over the years we have been expanding our business based on music.

Speaker #2: 实际上多集会员体系的设计是仍然还是针对于我们不同的用户对于音乐的这样一个需求来定义的。

Speaker #2: 所以在这么多年来，其实我们已经比较好的从传统的音乐订阅业务已经延伸到了更广泛和丰富的服务的品类。

Sha Ming: 所以在这么多年来，其实我们已经比较好地从传统的音乐订阅业务，已经延伸到了更广泛和丰富的服务的品类。

Ross Liang: 所以在这么多年来，其实我们已经比较好地从传统的音乐订阅业务，已经延伸到了更广泛和丰富的服务的品类。

Speaker #3: The design of a multi-tier member system is to meet the demands of different kinds of of users.

[Company Representative] (Tencent Music): For years, we have evolved from doing traditional streaming business to a broader category of business.

[Translator]: For years, we have evolved from doing traditional streaming business to a broader category of business.

Speaker #3: Three years ago, we evolved from doing traditional streaming business to a broader category of business.

Speaker #2: 所以我们比如说我们对于轻度的用户或者说在本身的中低这个活跃这个群体里面，我们始终使用免费模式去扩大免费模式以及广告会员来去提升他们的留存以及去考虑其中的一些商业的价值。

Speaker #2: 所以刚才你那个问题来说，就是我们的因为这几集会员的留存，我们目前并没有公布，但是我们可以说因为这个几集会员的提供使得整体的会员的留存是一个相当于一个比较稳定的。

Sha Ming: 所以刚才你那个问题来说，就是我们的，因为这几级会员的留存我们目前并没有公布，但是我们可以说，因为这个几级会员的提供使得整体的会员的留存是一个相当于比较稳定的。

Ross Liang: 所以刚才你那个问题来说，就是我们的，因为这几级会员的留存我们目前并没有公布，但是我们可以说，因为这个几级会员的提供使得整体的会员的留存是一个相当于比较稳定的。

Speaker #3: As to your question about user retention for different tiers of users, we have not disclosed this number, but in general, it's very stable.

[Company Representative] (Tencent Music): As to your question about user, retention for different tiers of users, we have not disclosed this number, but in general it's very stable.

[Translator]: As to your question about user, retention for different tiers of users, we have not disclosed this number, but in general it's very stable.

Speaker #3: For light users or not those very active users, we're using like free and app-supported approach to improve intention and tap their commercial value.

Speaker #2: 实际上多集会员体系的设计是仍然还是针对于我们不同的用户对于音乐的这样一个需求来定义的。

Sha Ming: 实际上多级会员体系的设计仍然还是针对于我们不同的用户对于音乐的这样的一个需求来定义的。

Ross Liang: 实际上多级会员体系的设计仍然还是针对于我们不同的用户对于音乐的这样的一个需求来定义的。

Speaker #2: 那基础的音乐服务始终还是位于对于相对比较高的这种对于音乐的一个认同，而且比较有粘性的这些用户去提供的一个会员的服务。

Speaker #3: The design of a multi-tier member system is to meet the demands of different kinds of users.

[Company Representative] (Tencent Music): The design of a multi-tier member system is to meet demands of different kind of users.

[Translator]: The design of a multi-tier member system is to meet demands of different kind of users.

Speaker #3: Basic music service is mainly for the users who have a relatively high demand for music and also for those sticky users.

Sha Ming: 所以我们比如说，对于轻度的用户，或者说在本身的中低活跃这个群体里面，我们始终使用免费模式去扩大免费模式，以及广告会员来去提升他们的留存，以及去考虑其中的一些商业的价值。

Ross Liang: 所以我们比如说，对于轻度的用户，或者说在本身的中低活跃这个群体里面，我们始终使用免费模式去扩大免费模式，以及广告会员来去提升他们的留存，以及去考虑其中的一些商业的价值。

Speaker #2: 那对于更深度的，那我们所以在目前刚才你提到我们去建立了无论是主要基于粉丝的 Fan Club，包括 Bubble 的这些基于粉丝效应的这些服务，那么都是针对于有更多元化的用户需求来对应的。

[Company Representative] (Tencent Music): For light users or not those very active users, we're using like free and ad-supported approach to improve retention and tap their commercial value.

[Translator]: For light users or not those very active users, we're using like free and ad-supported approach to improve retention and tap their commercial value.

Speaker #3: For light users, or those not very active, we're using a free and ad-supported approach to improve retention and tap into their commercial value.

Speaker #3: For those deeper value users like our products like Fan Club, Bubble are for those users who have a more diversified demand.

Speaker #2: 那基础的音乐服务始终还是位于对于相对比较高的这种对于音乐的一个认同，而且比较有粘性的一些用户去提供的一个会员的服务。

Sha Ming: 基础的音乐服务，始终还是位于对于相对比较高的这种，对于音乐的一个认同，而且比较有粘性的这些用户去提供的一个会员的服务。

Ross Liang: 基础的音乐服务，始终还是位于对于相对比较高的这种，对于音乐的一个认同，而且比较有粘性的这些用户去提供的一个会员的服务。

Speaker #2: 对，所以我们相信呢，其实现在未来针对于 IP 的一位核心的这样的一个音乐订阅服务，那包括不止音乐，包括音频，就是我们先来说，我们先来看到的就是比如我们对于听书和儿童这类的这类的相对来说这种音频跟音乐更深的基于 IP 的高价这种服务，我们能够发掘更大的商业机会和提升我们的用户的留存。

Speaker #3: Basic music service is mainly for users who have a relatively high demand for music and also for those sticky users.

[Company Representative] (Tencent Music): Basic music service is mainly for the users who have a relatively high demand for music and also for those sticky users.

[Translator]: Basic music service is mainly for the users who have a relatively high demand for music and also for those sticky users.

Speaker #2: 那对于更深度的，那我们所以在目前刚才提到我们去建立了无论是主要基于粉丝的 Fan Club，包括 Bubble 的这些基于粉丝效应的这些服务，那么都是针对于有更多元化的用户需求来对应的。

Sha Ming: 对于更深度的、更勤的，我们所以在目前，刚才提到我们去建立了，无论是主要基于粉丝的Fan Club，包括Bubble的这些基于粉丝效应的这些服务，那么都是针对于有更多元化的用户需求来对应的。

Ross Liang: 对于更深度的、更勤的，我们所以在目前，刚才提到我们去建立了，无论是主要基于粉丝的Fan Club，包括Bubble的这些基于粉丝效应的这些服务，那么都是针对于有更多元化的用户需求来对应的。

Speaker #3: I believe in the future the IP-based music subscription, not just a music subscription, but also the audio subscription business, including like book listening or kids audios, these IP-based content will create a bigger commercial opportunities and also improve our retention.

[Company Representative] (Tencent Music): For those deeper, value users, like our products like Fan Club, Bubbles are for those users who have a more diversified demand.

[Translator]: For those deeper, value users, like our products like Fan Club, Bubbles are for those users who have a more diversified demand.

Speaker #3: For those deeper value users, like our products like Fan Club, Bubble are for those users who have a more diversified demand.

Speaker #2: 对，所以我们相信呢，其实现在未来针对于 IP 的为核心的这样的一个音乐订阅服务，那包括不止音乐，包括音频，就是我们先来说，我们先来看到的就是比如我们对于听书和儿童这类的这类的相对来说这种音频跟音乐更深的基于 IP 的高价这种服务，我们能够发掘更大的商业机会和提升我们的用户的留存。

Sha Ming: 对，所以我们相信，其实现在未来针对于IP为核心的这样的一个音乐订阅服务，那包括，不止音乐，包括音频，就是我们现在来说，我们现在看到的就是比如我们对于听书和儿童这一类的，这一类的，相对来说这种音频跟音乐更深地基于IP的高价值内容服务，我们能够提——能够发掘更大的商业机会和提升我们的用户的留存。

Ross Liang: 对，所以我们相信，其实现在未来针对于IP为核心的这样的一个音乐订阅服务，那包括，不止音乐，包括音频，就是我们现在来说，我们现在看到的就是比如我们对于听书和儿童这一类的，这一类的，相对来说这种音频跟音乐更深地基于IP的高价值内容服务，我们能够提——能够发掘更大的商业机会和提升我们的用户的留存。

Speaker #2: 所以总结来看，也就是说相对来从现在后面开始，我们仍然还是为了仍然围绕着 IP 为核心去建立这样的一站式的综合的服务平台。那同时在上面去更好的提升用户的留存，那么在其中自然而然的这些商业机会就能够被我们去挖掘到。

Speaker #3: All in all, in the future, we will continue to build IP-based one-stop music service platform. And with all of this, we can continue to improve user retention and tap more business opportunities.

Speaker #3: I believe in the future, the IP-based music subscription—not just music subscription, but also the audio subscription business, including book listening or kids' audios—these IP-based contents will create bigger commercial opportunities and also improve our retention.

[Company Representative] (Tencent Music): I believe in the future, the IP based music subscription, not just a music subscription, but also the audio subscription business, including like book listening or kids audios. This IP based content will create a bigger commercial opportunities and also improve our retention.

[Translator]: I believe in the future, the IP based music subscription, not just a music subscription, but also the audio subscription business, including like book listening or kids audios. This IP based content will create a bigger commercial opportunities and also improve our retention.

Speaker #2: 对，这也是我们现在其实跟竞品竞争对手来相比来看，我们应该是最具价值的这一部分。

Speaker #3: And this is the very part that provides the most value, compared with our competitors.

Speaker #2: 所以总结来看，比如说相对来从现在后面开始，我们仍然还是为了仍然围绕着 IP 为核心去建立这样的一站式的综合的服务平台。那同时在上面去更好的提升用户的留存，那么在其中自然而然的这些商业机会就能够被我们去挖掘到。

Sha Ming: 所以总要来看，也就是说相对来从现在后面开始，我们仍然还是围绕着IP为核心去建立这样的一站式的综合的服务平台，那同时在上面去更好地提升用户的留存，那么在其中自然而然的这些商业机会就能够被我们去挖掘到。

Ross Liang: 所以总要来看，也就是说相对来从现在后面开始，我们仍然还是围绕着IP为核心去建立这样的一站式的综合的服务平台，那同时在上面去更好地提升用户的留存，那么在其中自然而然的这些商业机会就能够被我们去挖掘到。

Speaker #4: Thank you. And the next question comes from Morgan Stanley, Liu Yang. Yang, your line is open.

Speaker #1: 感谢提问的机会。那我的问题是也是关于这个会员服务的这个问题。那这个季度会员服务年对年还是有不错的增长，但是环比 Q on Q 的话是有一点点下跌。我想多理解一下这个后面的原因，因为我的理解是这个业务按理说的季节性不太强，但也有可能 EQ 可能是演唱会的这个淡季，不知道会不会有一些这个环比上的影响。那这个下滑环比下滑的背后除了季节性以外，我不知道是不是有一些比如竞争带来的问题，更多的是有一定的客户流失还是腾讯音乐这边自己的防御，比如说有一些用户可能从中高端的套餐降级到了低端的套餐。那这种情况是多不多，然后如何判断接下来的这个环比的走势，就是 membership 收入的环比走势。谢谢。

Speaker #3: All in all, in the future, we will continue to build an IP-based, one-stop music service platform, and with all of this, we can continue to improve user retention and tap more business opportunities.

[Company Representative] (Tencent Music): All in all, in the future, we will continue to build IP based one stop music service platform. With all of this, we can continue to improve user retention and tap more business opportunities.

[Translator]: All in all, in the future, we will continue to build IP based one stop music service platform. With all of this, we can continue to improve user retention and tap more business opportunities.

Speaker #2: 对，这也是我们现在其实跟竞品竞争对手来相比来看，我们应该是最具价值的这一部分。

Sha Ming: 所以这也是我们现在其实跟竞品竞争对手来相比来看，我们应该是最具价值的这一部分。

Ross Liang: 所以这也是我们现在其实跟竞品竞争对手来相比来看，我们应该是最具价值的这一部分。

Speaker #3: And this is the very part that provides the most value, compared with our competitors.

[Company Representative] (Tencent Music): This is the very part that provides the most value compared with our competitors.

[Translator]: This is the very part that provides the most value compared with our competitors.

Speaker #4: Thank you. And the next question comes from Morgan Stanley, Liu Yang. Yang, your line is open.

Shelly: Thank you. The next question comes from Morgan Stanley. Yang Liu. Yang, your line is open.

Operator: Thank you. The next question comes from Morgan Stanley. Yang Liu. Yang, your line is open.

Speaker #2: 感谢提问的机会。那我的问题是也是关于这个会员服务的这个问题。那这个季度会员服务年对年还是有不错的增长，但是环比 Q on Q 的话是有一点点下跌。我想多理解一下这个后面的原因，因为我的理解是这个业务按理说的季节性不太强，但也有可能 EQ 可能是演唱会的这个淡季，不知道会不会有一些这个环比上的影响。那这个下滑环比下滑的背后除了季节性以外，我不知道是不是有一些比如竞争带来的问题更多的是有一定的客户流失还是腾讯音乐这边自己的防御，比如说有一些用户可能从中高端的套餐降级到了低端的套餐。那这种情况多不多，然后如何判断接下来的这个环比的走势，那就是 membership 收入的环比走势。谢谢。

Yang Liu: 感谢提问的机会，我的问题也是关于会员服务的问题。这个季度会员服务年对年还是有不错的增长，但是环比Q on Q的话是有一点点下跌，我想多理解一下这个背后的原因。因为我的理解是这个业务按理说季节性不太强，但也有可能Q1可能是演唱会的淡季，不知道会不会有一些环比上的影响。那这个环比下滑的背后，除了季节性以外，我不知道是不是有一些比如竞争带来的问题，更多的是有一定的客户流失，还是腾讯音乐这边自己的防御，比如说有一些用户可能从中高端的套餐降级到了低端的套餐，那这种情况多不多？然后如何判断接下来的环比走势，就是membership收入的环比走势。谢谢。

Speaker #3: Thank you very much. My question is about a members services. We noticed that this quarter, if you look at where year on year growth that's very good, but if you look at quarter over quarter, it's going down slightly.

Speaker #3: I'm just wondering what is the reason behind it, because as far as I can tell, this business doesn't seem to have a very strong seasonality.

Speaker #3: And probably I guess it's because Q1 is a relatively low season. But apart from the seasonalities, is there any other possible reasons like competition, some churns of users, or some higher value users are changing their packages from high packages to some cheaper packages?

[Company Representative] (Tencent Music): Thank you very much. My question is about member services. We noticed that this quarter if you look at where year on year growth, that's very good. If you look at quarter over quarter, it's going down slightly. I am just wondering what is the reason behind it? As far as I can tell, this business doesn't seem to have a very strong seasonality. Probably I guess it's because Q1 is a relatively low season. Apart from the seasonality, is there any other possible reasons like competition, some churns of users or some higher value users are changing their packages from like high packages to some cheaper packages? Could you also give us some like guidance of the future quarter over quarter growth for this business?

[Translator]: Thank you very much. My question is about member services. We noticed that this quarter if you look at where year on year growth, that's very good. If you look at quarter over quarter, it's going down slightly. I am just wondering what is the reason behind it? As far as I can tell, this business doesn't seem to have a very strong seasonality. Probably I guess it's because Q1 is a relatively low season. Apart from the seasonality, is there any other possible reasons like competition, some churns of users or some higher value users are changing their packages from like high packages to some cheaper packages? Could you also give us some like guidance of the future quarter over quarter growth for this business?

Speaker #3: And could you also give us some guidance of the future quarter over quarter growth for this business?

Speaker #1: Great.

Speaker #2: 我们其实可以看到主要还是从事刚才选我就回到刚才那个问题，就是本身我们的并不是因为我们自己的 ISO/IP 的 ISO/IP 的降低或者从其他的流失所导致的。所以我刚才提到说我们其实 ISO/IP 本身仍然能够保持比较好的一个增长，所以这是首先这块就我们中高活跃的群体其实是没有受到多大影响。

Speaker #3: I'm just wondering, what is the reason behind it? Because as far as I can tell, this business doesn't seem to have very strong seasonality.

Speaker #3: And probably, I guess it's because Q1 is a relatively low season. But apart from the seasonalities, is there any other possible reason, like competition, some churn of users, or some higher value users changing their packages from high packages to some cheaper packages?

Speaker #3: 我 first I want to respond to your question by saying it is not because of some SBIP members have a chosen some lower or cheaper packages or because of the churn of users.

Speaker #3: And could you also give us some guidance on the future quarter-over-quarter growth for this business?

Speaker #3: As you can tell, our SBIP member is still growing steadily, so our medium to high value users are still there.

Speaker #2: 所以你其实看到环比的这个变化呢，主要竞争确实来自于音乐流媒体这个板块。当然尤其是对于免费和价格敏感的用户。

Speaker #2: Okay, 我们其实可以看到主要还是从事刚才我先回答刚才那个问题，就是本身我们的并不是因为我们自己的 ISO/IP 的降低或者从其他的流失所导致的。所以我刚才提到说我们其实 ISO/IP 本身仍然能够保持比较好的一个增长，所以这是首先这块就我们中高活跃的群体其实是没有受到多大影响。

Sha Ming: 我们其实可以看到，主要还是从——首先我先回答刚才那个问题，就是本身我们的并不是因为我们自己的SVIP的，SVIP的降低或者其他的流失所导致的。所以我刚才也提到说，我们其实SVIP本身仍然能够保持比较好的一个增长，所以这是首先。首先这块就我们中高活跃的群体其实没有受到多少影响。

Ross Liang: 我们其实可以看到，主要还是从——首先我先回答刚才那个问题，就是本身我们的并不是因为我们自己的SVIP的，SVIP的降低或者其他的流失所导致的。所以我刚才也提到说，我们其实SVIP本身仍然能够保持比较好的一个增长，所以这是首先。首先这块就我们中高活跃的群体其实没有受到多少影响。

Speaker #3: 我 as you mentioned this QOQ slide decline is mainly because of the competition on the streaming music streaming business, and especially for those free and ad-supported members.

Speaker #3: First, I want to respond to your question by saying it is not because some SBIP members have chosen some lower or cheaper packages, or because of the churning of users.

[Company Representative] (Tencent Music): Well, first, I want to respond to your question by saying it is not because some SVIP members have chosen some lower or cheaper packages, or because of the churning of users. As you can tell that our SVIP member is still growing steadily, our medium to high value users are still there.

[Translator]: Well, first, I want to respond to your question by saying it is not because some SVIP members have chosen some lower or cheaper packages, or because of the churning of users. As you can tell that our SVIP member is still growing steadily, our medium to high value users are still there.

Speaker #2: 对，市场上也出现了一些些偏离商业本质的现象。对，部分这种行业从业者也通过 AI 去生成一些盗版的内容去快速的填充曲库，并以激进的这样一个导流的方式去争夺轻度和价格敏感型的用户的注意力。

Speaker #3: As you can tell, our SBIP member base is still growing steadily, so our medium- to high-value users are still there.

Speaker #3: We observe some phenomenon in the market that deviate from the business essence, some other competitors are using AI to quickly fill their music libraries and trying to use the aggressive strategy to divert traffic and users into their platform and also fighting for those light users.

Speaker #2: 所以你其实看到环比的这个变化呢，主要竞争确实来自于音乐流媒体这个板块。当然尤其是对于免费和价格敏感的用户。

Sha Ming: 所以你去看到环比的这个变化呢，主要竞争确实来自于音乐流媒体这个板块，当然尤其是对于免费和价格敏感的用户。

Ross Liang: 所以你去看到环比的这个变化呢，主要竞争确实来自于音乐流媒体这个板块，当然尤其是对于免费和价格敏感的用户。

Speaker #3: As you mentioned, this QOQ slide decline is mainly because of the competition in the music streaming business, especially for those free and ad-supported members.

[Company Representative] (Tencent Music): Well, as you mentioned, this QOQ slight decline is mainly because of the competition on the streaming music business, and especially for those free and ad supported members.

[Translator]: Well, as you mentioned, this QOQ slight decline is mainly because of the competition on the streaming music business, and especially for those free and ad supported members.

Speaker #2: 所以在我们看来，现在确实一个挺，这是一个比较重要的时刻，因为这时候其实是这样的行为，实际上对产业这种健康生态的一种消耗。更是也是对我们自身长期商业价值的一个透支。

Speaker #2: 对，市场上也出现了一些些偏离商业本质的现象。对部分这种行业从业者也通过 AI 去生成一些盗版的内容去快速的填充曲库，并以激进的这样一个导流的方式去争夺轻度和价格敏感型的用户的注意力。

Sha Ming: 市场上也出现了一些偏离商业本质的现象，部分行业从业者也通过AI去生成一些盗版的内容，去快速填充曲库，并以激进的导流方式去争夺轻度和价格敏感型用户的注意力。

Ross Liang: 市场上也出现了一些偏离商业本质的现象，部分行业从业者也通过AI去生成一些盗版的内容，去快速填充曲库，并以激进的导流方式去争夺轻度和价格敏感型用户的注意力。

Speaker #3: Well, we noticed that this is a very important moment for the industry because such behavior is an exhaustion of the economic value of this industry and also their consuming their own business value.

Speaker #3: I observe some phenomena in the market that deviate from the business essence. Some other competitors are using AI to quickly fill their music libraries and are trying to use aggressive strategies to divert traffic and users into their platform, also fighting for those light users.

[Company Representative] (Tencent Music): We observed some phenomenon in the market that deviate from the business essence. Some other competitors are using AI to quickly fill their music libraries and trying to use aggressive strategy to divert traffic and users into their platform. They're also fighting for those light users.

[Translator]: We observed some phenomenon in the market that deviate from the business essence. Some other competitors are using AI to quickly fill their music libraries and trying to use aggressive strategy to divert traffic and users into their platform. They're also fighting for those light users.

Speaker #2: 所以面对这样的环境，刚才也就像我刚才所说的，我们仍然会去聚焦，我们仍然要去专注于去是一个综合性的，一个音乐服务平台。

Speaker #3: Let me this environment as we said in the beginning, we will stay focused on building a one-stop comprehensive music service platform.

Speaker #2: 所以在我们看来现在确实一个挺，这是一个比较重要的时刻，因为这时候其实是这样的行为实际上对产业这种健康生态的一种消耗。更是也是对我们自身长期商业价值的一个透支。

Sha Ming: 所以在我们看来，现在确实是一个挺——这是一个比较重要的时刻，因为这时候其实是这样的行为相当于对产业这种健康生态的一种消耗，更是也是对我们自身长期商业价值的一个透支。

Ross Liang: 所以在我们看来，现在确实是一个挺——这是一个比较重要的时刻，因为这时候其实是这样的行为相当于对产业这种健康生态的一种消耗，更是也是对我们自身长期商业价值的一个透支。

Speaker #2: 当然就是这个来看，就是真的因为我们在整个的其实是两个大平台，两个比较大的一个音乐平台去提供了我们的音乐的包月收入，一个是酷狗，一个是 Q 音乐。

Speaker #3: Well, we noticed that this is a very important moment for the industry because such behavior is an exhaustion of the economic value of this industry, and also they're consuming their own business value.

[Company Representative] (Tencent Music): Well, we noticed that this is a very important moment for the industry, because such behavior is an exhaustion of the economic value of this industry. Also they are consuming their own business value.

[Translator]: Well, we noticed that this is a very important moment for the industry, because such behavior is an exhaustion of the economic value of this industry. Also they are consuming their own business value.

Speaker #3: We provide monthly subscription music services on two music platforms, Google and QQ Music.

Speaker #2: 所以刚才像刚才我讲话里提到的，就是其实实际上来说就是酷狗的平台的用户对于价格和对于促销的活动是更为敏感的。那在多平台这样选择的面前，轻度用户的流失性确实在相比之前是有所增加的。

Speaker #2: 所以面对这样的环境，刚才也就像我刚才所说的，我们仍然会去聚焦，我们仍然要去专注于去是一个综合性的，一个音乐服务平台。

Sha Ming: 所以面对这样的环境，就像我刚才所说的，我们仍然会去聚焦，我们仍然是要去专注于去是一个综合性的一个音乐服务平台。

Ross Liang: 所以面对这样的环境，就像我刚才所说的，我们仍然会去聚焦，我们仍然是要去专注于去是一个综合性的一个音乐服务平台。

[Company Representative] (Tencent Music): Amid this environment, as we said in the beginning, we will stay focused on building a one-stop comprehensive music service platform.

[Translator]: Amid this environment, as we said in the beginning, we will stay focused on building a one-stop comprehensive music service platform.

Speaker #3: Let me set the environment as we said in the beginning: we will stay focused on building a one-stop comprehensive music service platform. 当然就是这个来看，就是真的因为我们在整个的其实是两个大平台，两个比较大的一个音乐平台去提供了我们的音乐的包月收入，一个是酷狗，一个是 Q 音乐。 We provide monthly subscription music services on two music platforms, Kugou and QQ Music.

Speaker #3: Users on Google platform is more price sensitive than promotion sensitive, and well, in face of multiple choices and these kind of users are easily flown away.

Sha Ming: 当然就是这个来看，真的因为我们在整个的其实是两个大平台，两个比较大的一个音乐平台去提供了我们的音乐的包月收入，一个是QQ，一个是QQ音乐。

Ross Liang: 当然就是这个来看，真的因为我们在整个的其实是两个大平台，两个比较大的一个音乐平台去提供了我们的音乐的包月收入，一个是QQ，一个是QQ音乐。

Speaker #2: 所以我们这样的情况就是在实际上在这样的话，其实是会影响到对于酷狗音乐平台的会员的开通量。

[Company Representative] (Tencent Music): We provide monthly subscription music services on 2 music platforms, QQ and QQ Music.

[Translator]: We provide monthly subscription music services on 2 music platforms, QQ and QQ Music.

Speaker #3: 我 this will have some impact on the new membership growth on Google platform。

Speaker #2: 所以像刚才我讲话里提到的，就是其实实际上来说就是酷狗的平台的用户对于价格和对于促销的活动是更为敏感的。那在多平台这样选择的面前，轻度用户的流失性确实在相比之前是有所增加的。

Sha Ming: 所以像刚才你提到的，其实实际上来说，酷狗的平台的用户对于价格和对于促销的活动是更为敏感的，那在多平台这样选择的面前，轻度用户的流失性确实在相比之前是有所增加的。

Ross Liang: 所以像刚才你提到的，其实实际上来说，酷狗的平台的用户对于价格和对于促销的活动是更为敏感的，那在多平台这样选择的面前，轻度用户的流失性确实在相比之前是有所增加的。

Speaker #2: 那在这样的情况下，我们就要通过免费模式和广告会员来去降低我们的用户的使用门槛。

Speaker #3: In this context, we have to use the free and ad-supported mode to reduce the barrier to entry.

Speaker #3: Users on the Google platform are more price sensitive than promotion sensitive, and when faced with multiple choices, these kinds of users are easily drawn away.

[Company Representative] (Tencent Music): The users on Kugou platform is more price sensitive than promotion sensitive, and well, in face of multiple choices, these kind of users are easily flowing away.

[Translator]: The users on Kugou platform is more price sensitive than promotion sensitive, and well, in face of multiple choices, these kind of users are easily flowing away.

Speaker #2: 另外我们也我们的酷狗的概念版在上应该说在上半年也取得了一个比较好的增长，能够用更加灵活的定价和内容组合去满足用户的轻度化的需求。

Speaker #3: Google concept version is also posting very robust growth and for South of this year because we're adopting a more flexible pricing and the content to retain these light users.

Speaker #2: 所以我们这样的情况就是在实际上在这样的话其实是会影响到对于酷狗音乐平台的会员的开通量。

Sha Ming: 所以我们这样的情况就是在实际上在这样的话其实是会影响到对于酷狗音乐平台的会员的开通量。

Ross Liang: 所以我们这样的情况就是在实际上在这样的话其实是会影响到对于酷狗音乐平台的会员的开通量。

Speaker #3: I think this will have some impact on the new membership growth on the Google platform.

[Company Representative] (Tencent Music): Well, this will have some impact on the new membership growth on Kugou platform.

[Translator]: Well, this will have some impact on the new membership growth on Kugou platform.

Speaker #2: Are you make Q 音乐相对来说比较综合？

Speaker #2: 那在这样的情况下，我们就要通过免费模式和广告会员来去降低我们的用户的使用门槛。

Speaker #3: QQ Music is relatively more comprehensive platform。

Sha Ming: 那在这样的情况下，我们就要通过免费模式和广告会员来去降低我们的用户的使用门槛。

Ross Liang: 那在这样的情况下，我们就要通过免费模式和广告会员来去降低我们的用户的使用门槛。

Speaker #2: 所以整体的我们的运营数据还是比较健康并且保持稳定的。

[Company Representative] (Tencent Music): In this context, we have to use the free and ad supported mode to reduce the barrier to entry.

[Translator]: In this context, we have to use the free and ad supported mode to reduce the barrier to entry.

Speaker #3: In this context, we have to use the free and ad-supported mode to reduce the barrier to entry.

Speaker #3: 所以 overall operational data on QQ Music platform is steady and healthy。

Speaker #2: 然后用户本身的在全平台这个价值上是甚至是往本中有升的。

Sha Ming: 另外，我们的酷狗概念版在上半年也取得了一个比较好的增长，能够用更加灵活的定价和内容组合去满足用户的轻度化的需求。

Ross Liang: 另外，我们的酷狗概念版在上半年也取得了一个比较好的增长，能够用更加灵活的定价和内容组合去满足用户的轻度化的需求。

Speaker #3: The overall value of users on this platform is even increasing。

Speaker #2: 另外就刚才我们所说，在我们刚刚发布的视频号和 QQ 音乐的合作，我们相信也会进一步的去巩固我们在这个 APP 上的竞争优势。

Speaker #3: Google Concept version is also posting very robust growth, and for the south of this year, because we're adopting a more flexible pricing and the content to retain these light users.

[Company Representative] (Tencent Music): Kugou Concept Version is also posting a very robust growth in H1 of this year because we're adopting a more flexible pricing and content to retain these light users.

[Translator]: Kugou Concept Version is also posting a very robust growth in H1 of this year because we're adopting a more flexible pricing and content to retain these light users.

Speaker #3: The reason to release of the collaboration between WeChat channels and QQ Music will further consolidate our competitive edge。

Speaker #2: Are you making音乐相对来说比较综合？

Sha Ming: 而因为QQ音乐相对来说比较综合。

Ross Liang: 而因为QQ音乐相对来说比较综合。

Speaker #2: 最后我们也相信就是实际上我们在无论是在线下的体验以及我们多设备上的用户的规模仍然还是也是我们的一个比较好的一个竞争的一个优势，使得我们自己在未来去实现我们更好的商业商业化的机会，提供一个更加非常好的一个基础。

[Company Representative] (Tencent Music): QQ Music is relatively a more comprehensive platform.

[Translator]: QQ Music is relatively a more comprehensive platform.

Speaker #3: QQ Music is a relatively more comprehensive platform.

Speaker #2: 所以整体的我们的运营数据还是比较健康并且保持稳定的。

Sha Ming: 所以整体的我们的运营数据还是比较健康并且保持稳定的。

Ross Liang: 所以整体的我们的运营数据还是比较健康并且保持稳定的。

Speaker #3: So overall, operational data on the QQ Music platform is steady and healthy.

[Company Representative] (Tencent Music): The overall operational data on QQ Music platform is steady and healthy.

[Translator]: The overall operational data on QQ Music platform is steady and healthy.

Speaker #2: 然后用户本身的在全平台这个价值上是甚至是往本中有升的。

Sha Ming: 然后用户本身呢在全平台这个价值上是甚至是稳中有升。

Ross Liang: 然后用户本身呢在全平台这个价值上是甚至是稳中有升。

Speaker #3: Lastly, our offline performance or experience or multi-device user experience and scale remain to be our competitive edge, which provide a solid base for us to further tap commercial opportunities。

[Company Representative] (Tencent Music): The overall value of users on this platform is even increasing.

[Translator]: The overall value of users on this platform is even increasing.

Speaker #3: The overall value of users on this platform is even increasing.

Speaker #2: 另外就刚才我们所说，在我们刚刚发布的视频号和 QQ 音乐的合作，我们相信也会进一步的去巩固我们在这个 APP 上的竞争优势。

Sha Ming: 另外，就刚才我们所说，在我们刚刚发布的WeChat Channels和QQ音乐的合作，我们相信也会进一步地去巩固我们在这个app上的竞争优势。

Ross Liang: 另外，就刚才我们所说，在我们刚刚发布的WeChat Channels和QQ音乐的合作，我们相信也会进一步地去巩固我们在这个app上的竞争优势。

Speaker #1: Thank you. And then this question coming from Mizuho. Huawei, where your lines open?

Speaker #3: The reason to release the collaboration between WeChat Channels and QQ Music will further consolidate our competitive edge. Lastly, our offline performance or experience, or multi-device user experience and scale, remain to be our competitive edge, which provide a solid base for us to further tap commercial opportunities.

[Company Representative] (Tencent Music): The recent release of the collaboration between WeChat Channels and QQ Music will further consolidate our competitive edge.

[Translator]: The recent release of the collaboration between WeChat Channels and QQ Music will further consolidate our competitive edge.

Speaker #4: 好，谢谢接受我的提问。我有个问题想请教一下 Shirley 总，因为我们看到这个季度的那个 gross margin 其实是比上个季度环比有一些提升。那我不知道这样会不会改变管理层对上个季度对于今年全年的这个 gross margin 这样的一个预测，因为当时你们说是一个平稳或者是 1 点点下降。然后我想再另外请教一下，就是 sales marketing 这个季度确实有增长。那你们有提到这个是因为你们跟这个腾讯那边做更深度的整合，我想问一下这一块的这个 cost ratio 会是一个 one time 吗？还是或者说在未来的几个季度里面会维持一个相对来说比较高的这样的一个数字？谢谢。

Sha Ming: 最后我们也相信，就是实际上我们在无论是在线下的体验以及我们多设备上的用户的规模仍然还是也是我们的一个比较好的一个竞争的一个优势，使得我们自己在未来去实现我们更好的商业、商业化的机会，提供一个更加非常好的一个基础。

Ross Liang: 最后我们也相信，就是实际上我们在无论是在线下的体验以及我们多设备上的用户的规模仍然还是也是我们的一个比较好的一个竞争的一个优势，使得我们自己在未来去实现我们更好的商业、商业化的机会，提供一个更加非常好的一个基础。

[Company Representative] (Tencent Music): Lastly, our offline performance or experience or multi-device user experience and scale remain to be our competitive edge, which provide a solid base for us to further tap commercial opportunities.

[Translator]: Lastly, our offline performance or experience or multi-device user experience and scale remain to be our competitive edge, which provide a solid base for us to further tap commercial opportunities.

Shelly: Thank you. The next question coming from Ms. Zuoho Huiwei. Huiwei, your line is open.

Operator: Thank you. The next question coming from Ms. Zuoho Huiwei. Huiwei, your line is open.

Speaker #1: Thank you. And then this question coming from Mizuho. Huangwei, where are your lines open?

Speaker #4: 好，谢谢接受我的提问。我有个问题想请教一下 Shirley 总，因为我们看到这个季度的 gross margin 其实是比上个季度环比有一些提升。那我不知道这样会不会改变管理层对上个季度对于今年全年的 gross margin 这样的一个预测，因为当时你们说是一个平稳或者是一点点下降。然后我想再另外请教一下，就是 sales & marketing 这个季度确实有增长。那你们有提到这个是因为你们跟腾讯那边做更深度的整合，我想问一下这一块的 cost ratio 会是一个 one-time 吗？还是说在未来的几个季度里面会维持一个相对来说比较高的这样的一个数字？谢谢。

Zuoho Huiwei: 好，谢谢，谢谢我的提问。我有个问题想请教一下Shelly总，因为我们看到这个季度的那个gross margin其实是比上个季度环比有一些提升，那我不知道这样会不会改变管理层对上个季度对于今年全年的这个gross margin这样的一个预测，因为当时你们说是一个平稳或者是一点点下降。然后我想再另外请教一下，就是sales marketing这个季度确实有增长，那你们有提到这个是因为你们跟这个腾讯那边做更深度的整合，我想问一下这一块的这个cost ratio会是一个one time吗？还是说，或是说在未来的几个季度里面会维持一个相对来说比较高的这样的一个数据？谢谢。

[Analyst] (Mizuho): 好，谢谢，谢谢我的提问。我有个问题想请教一下Shelly总，因为我们看到这个季度的那个gross margin其实是比上个季度环比有一些提升，那我不知道这样会不会改变管理层对上个季度对于今年全年的这个gross margin这样的一个预测，因为当时你们说是一个平稳或者是一点点下降。然后我想再另外请教一下，就是sales marketing这个季度确实有增长，那你们有提到这个是因为你们跟这个腾讯那边做更深度的整合，我想问一下这一块的这个cost ratio会是一个one time吗？还是说，或是说在未来的几个季度里面会维持一个相对来说比较高的这样的一个数据？谢谢。

Speaker #3: Well, thank you very much. We noticed that the GP margin this year actually is growing a little bit for a quarter and just wondering in this case will you change your overall is the whole year's guidance on GPM because I remember last quarter's call said that the overall year's GP margin will stay flat or even decreasing slightly.

Speaker #3: And we also noticed that the sales selling expenses actually increased a bit and you said because of the like the deeper collaboration with Tencent ecosystem.

Speaker #3: I'm just wondering if this cost ratio is it one off or?

Speaker #1: 同比来看呢，我们的这个 QE 确实是取得了不错的这个毛利率。那么主要的因为以下几个因素。

Speaker #3: Thank you very much. We noticed that the GP margin this year is actually growing a little bit quarter over quarter. I'm just wondering, in this case, would you change your overall guidance on the whole year's GPM? I remember last quarter's call said that the overall year's GP margin will stay flat or even decrease slightly.

[Company Representative] (Tencent Music): Well, thank you very much. We noticed that the GP margin this year actually is growing a little bit quarter over quarter. I'm just wondering, in this case, will you change your overall the whole year guidance on GP margin? Because I remember last quarter's call you said that the overall year GP margin will stay flat or even decreasing slightly. We also notice that the sales and selling expenses actually increased a bit. Is that because of the like the deeper collaboration with Tencent ecosystem? I'm just wondering this cost ratio, is it one off?

[Translator]: Well, thank you very much. We noticed that the GP margin this year actually is growing a little bit quarter over quarter. I'm just wondering, in this case, will you change your overall the whole year guidance on GP margin? Because I remember last quarter's call you said that the overall year GP margin will stay flat or even decreasing slightly. We also notice that the sales and selling expenses actually increased a bit. Is that because of the like the deeper collaboration with Tencent ecosystem? I'm just wondering this cost ratio, is it one off?

Speaker #3: Well, if you look at YOY in Q1, we've had a very good GP margin, mainly because of the following risks.

Speaker #1: 第一呢，就是 QE 的会员及广告收入持续增长，这个对我们的毛利率还是一个持续正向的。

Speaker #3: Number one is in Q1, we see a continuous growth of membership and ads business, which contributes positively to our GP margin.

Speaker #3: And we also noticed that the sales and selling expenses actually increased a bit, and you said it's because of the deeper collaboration with the Tencent ecosystem.

Speaker #1: 第二点呢，就是尽管我们的 IP 相关业务收入占总收入的比例是相对增长的，那由于 IP 相关业务中的经济类业务增长是比较快的，占比也逐步升高。那同时演唱会及活动类的业务积累了运营经验，也提升了运营效率。那么总体而言，我们觉得 IP 类的这个相关业务在本季度呢，对毛利率的影响基本是没有的。

Speaker #3: I'm just wondering about this cost ratio—is it a one-off, or?

Speaker #1: 同比来看呢，我们的这个 QE 确实是取得了不错的这个毛利率。那么主要的因为以下几个因素。

Sha Ming: 同比来看，我们的Q1确实是取得了不错的毛利率，那么主要的因为以下几个因素。

Shirley Hu: 同比来看，我们的Q1确实是取得了不错的毛利率，那么主要的因为以下几个因素。

Speaker #3: Well, if you look at year-over-year in Q1, we've had a very good gross profit margin, mainly because of the following risks.

[Company Representative] (Tencent Music): Well, if you look at YOY in Q1, we had a very good GP margin, mainly because of the following reasons.

[Translator]: Well, if you look at YOY in Q1, we had a very good GP margin, mainly because of the following reasons.

Speaker #1: 第一呢，就是 QE 的会员及广告收入持续增长，这个对我们的毛利率还是一个持续正向的。

Sha Ming: 第一呢，就是Q1的会员及广告收入持续增长，这个对我们的毛利率还是一个持续正向的。

Shirley Hu: 第一呢，就是Q1的会员及广告收入持续增长，这个对我们的毛利率还是一个持续正向的。

Speaker #3: Well, despite the fact that the IP related businesses are growing very rapidly in terms of the overall contribution to the revenue and especially if we look at our brokering business is growing exponentially and is proportion for overall contribution to the revenue is also going up.

Speaker #3: Number one is, in Q1, we see a continuous growth of membership and ads business, which contributes positively to our GP margin.

[Company Representative] (Tencent Music): Number one is in Q1, we see a continuous growth of membership and ads business which contributes positively to our gross margin.

[Translator]: Number one is in Q1, we see a continuous growth of membership and ads business which contributes positively to our gross margin.

Speaker #3: And it can also tell that our offline performance and event business through that we have accumulated lots of experience and improved the operational efficiency.

Speaker #1: 第二点呢，就是尽管我们的 IP 相关业务收入占总收入的比例是相对增长的，那由于 IP 相关业务中的经济类业务增长是比较快的，占比也逐步升高。同时，演唱会及活动类的业务积累了运营经验，也提升了运营效率。那么总体而言，我们觉得 IP 类的这个相关业务在本季度呢，对毛利率的影响基本是没有的。

Sha Ming: 第二点呢，就是尽管我们的IP相关业务收入占总收入的比例是相对增长的，那由于IP相关业务中的经纪类业务增长是比较快的，占比也逐递升高。那同时演唱会及活动类的业务积累了运营经验，也提升了运营效率。那么总体而言，我们觉得IP类的这个相关业务在本季度呢对毛利率的影响基本是没有的。

Shirley Hu: 第二点呢，就是尽管我们的IP相关业务收入占总收入的比例是相对增长的，那由于IP相关业务中的经纪类业务增长是比较快的，占比也逐递升高。那同时演唱会及活动类的业务积累了运营经验，也提升了运营效率。那么总体而言，我们觉得IP类的这个相关业务在本季度呢对毛利率的影响基本是没有的。

Speaker #3: So overall, the IP related business impact on the GP margin is close to zero.

Speaker #1: 所以第三点就是我们也同时对各项成本呢进行了极其的管控，也提升了 ROC，也取得了不错的成效。

Speaker #3: The rigid cost control also generates very good results on ROC。

Speaker #3: Well, despite the fact that the IP-related business is growing very rapidly in terms of the overall contribution to the revenue, and especially if we look at our brokering business, it is growing exponentially and its proportion of overall contribution to the revenue is also going up.

[Company Representative] (Tencent Music): Well, despite the fact that the IP related business is growing very, very rapidly in terms of the overall contribution to the revenue, and especially if you look at our brokering business is growing exponentially and its proportion for overall contribution to the revenue is also going up. You can also tell our offline performance and events business through that we have accumulated lots of experience and improve the operational efficiency. Overall, the IP related business impact on the GP margin is close to 0.

[Translator]: Well, despite the fact that the IP related business is growing very, very rapidly in terms of the overall contribution to the revenue, and especially if you look at our brokering business is growing exponentially and its proportion for overall contribution to the revenue is also going up. You can also tell our offline performance and events business through that we have accumulated lots of experience and improve the operational efficiency. Overall, the IP related business impact on the GP margin is close to 0.

Speaker #1: 那环比来看呢，毛利率的提升呢，主要是因为 IP 类的相关业务的收入的季节性波动。QE 的这个占比显著是收入的占比是显著低于去年 Q4 的。

Speaker #3: And you can also tell that our offline performance and event business, through that, we have accumulated lots of experience and improved the operational efficiency.

Speaker #3: Well, if you look at quarter over quarter, the rise of GP margin is mainly because of the seasonality of IP related business because if you look at Q1, the contribution from this business is far lower than Q4 last year。

Speaker #3: So, overall, the IP-related business impact on the GP margin is close to zero.

Speaker #1: 对，这个对毛利率呢产生了一个正向的影响。那么抵消了会员与广告收入季节性的一个负面影响。

Speaker #1: 所以第三点就是我们也同时对各项成本呢，进行了积极的管控，也提升了 ROC，也取得了不错的成效。

Sha Ming: 所以第三点就是我们也同时对各项成本呢进行了积极的管控，也提升了ROI，也取得了不错的成效。

Shirley Hu: 所以第三点就是我们也同时对各项成本呢进行了积极的管控，也提升了ROI，也取得了不错的成效。

Speaker #3: Well, because it's generates some positive impact over GP margin and also cost that the impact of the seasonality reasons of membership and advertising business。

Speaker #3: The rigid cost control also generates very good results on ROC.

[Company Representative] (Tencent Music): The rigid cost control, also generates very good results on our team.

[Translator]: The rigid cost control, also generates very good results on our team.

Speaker #1: 那环比来看呢，毛利率的提升呢，主要是因为 IP 类的相关业务的收入的季节性波动。QE 的这个占比显著是收入的占比是显著低于去年 Q4 的。

Shelly: 环比来看，毛利率的提升，主要是因为IP类的相关业务的收入的季节性波动。Q1的这个占比显著是收入的占比是显著低于去年Q4的。

Shirley Hu: 环比来看，毛利率的提升，主要是因为IP类的相关业务的收入的季节性波动。Q1的这个占比显著是收入的占比是显著低于去年Q4的。

Speaker #1: 那么根据这个预期，我们对未来的这个收入增长的节奏的一个预期呢，我们预计这个 Q2 的这个毛利率与去年基本同期是持平的。

Speaker #3: Well, if you look at quarter over quarter, the rise of GP margin is mainly because of the seasonality of IP-related business, because if you look at Q1, the contribution from this business is far lower than Q4 last year.

[Company Representative] (Tencent Music): Well, if you look at quarter-over-quarter, the rise of GP margin is mainly because of the seasonality of IP-related business. If you look at Q1, the contribution from this business is far lower than Q4 last year.

[Translator]: Well, if you look at quarter-over-quarter, the rise of GP margin is mainly because of the seasonality of IP-related business. If you look at Q1, the contribution from this business is far lower than Q4 last year.

Speaker #3: Well, as to the our expectation over future revenue growth, we expect to have a GP margin on par with last year in Q2。

Speaker #1: 对，这个对毛利率的产生了一个正向的影响。那么抵消了会员与广告收入季节性的一个负面影响。

Shelly: 对，这个对毛利率呢产生了一个正向的影响，那么抵消了会员与广告收入季节性的一个负面影响。

Shirley Hu: 对，这个对毛利率呢产生了一个正向的影响，那么抵消了会员与广告收入季节性的一个负面影响。

Speaker #1: 那么长期来看呢，我们预计我们现有的会员和广告收入的增速会稍有放缓，相对来放缓。但是我们会通过对各项相关成本的严格管理，在内容上减少对低价值非优质内容的无效的投入。那么结合评估渠道费率下降的这个情况，我们认为我们的这一块的业务会保持一个盈利的韧性。

Speaker #3: Well, because it generates some positive impact over GP margin, and also offsets the impact of the seasonality reasons of membership and advertising business.

[Company Representative] (Tencent Music): It generates some positive impact over the GP margin and also offsets the impact of the seasonality reasons of membership and advertising business.

[Translator]: It generates some positive impact over the GP margin and also offsets the impact of the seasonality reasons of membership and advertising business.

Shelly: 根据这个预期，我们对未来的收入增长的节奏的预期，我们预计Q2的毛利率与去年同期基本持平。

Shirley Hu: 根据这个预期，我们对未来的收入增长的节奏的预期，我们预计Q2的毛利率与去年同期基本持平。

Speaker #1: 那么根据这个预期，我们对未来的这个收入增长的节奏的一个预期呢，我们预计这个 Q2 的这个毛利率去年基本同期是持平的。

Speaker #3: In the long run, we expect some slowdown of the growth rate from membership and advertising business, but we will adopt a very rigid cost control measures by reducing our resource allocation to low value less effective content and plus the reduction of channel fees from Apple Store and all of this will provide enough room for the resiliency of our profits。

Speaker #3: As to our expectation over future rapid growth, we expect to have a GP margin on par with last year in Q2.

[Company Representative] (Tencent Music): Well, as to the, our expectation over future revenue growth, we expect to have a GP margin on par with last year in Q2.

[Translator]: Well, as to the, our expectation over future revenue growth, we expect to have a GP margin on par with last year in Q2.

Shelly: 那么长期来看呢，我们预计我们现有的会员和广告收入的增速会稍有放缓，相对来放缓。但是我们会通过对各项相关成本的严格管理，在内容上减少对低价值非优质内容的无效的投入。那么结合苹果渠道费率下降的这个情况，我们认为我们的这一块的业务会保持一个盈利的韧性。

Shirley Hu: 那么长期来看呢，我们预计我们现有的会员和广告收入的增速会稍有放缓，相对来放缓。但是我们会通过对各项相关成本的严格管理，在内容上减少对低价值非优质内容的无效的投入。那么结合苹果渠道费率下降的这个情况，我们认为我们的这一块的业务会保持一个盈利的韧性。

Speaker #1: 那另一方面呢，我们 IP 相关的新业务的高速增长，那么对毛利率确实会带来一些结构性的压力。那么特别是季度和季度之间，那我们会持续的优化运营，按项目精细化管控投入产出，利用平台和内容的结合，线上和线下的结合。那么扩充自有 IP 规模等方式，不断去扩展盈利空间。

Speaker #3: In the long run, we expect some slowdown of the growth rate from membership and advertising business. But we will adopt very rigid cost control measures by reducing our resource allocation to low-value, less effective content, plus the reduction of channel fees from Apple Store, and all of this will provide enough room for the resiliency of our profits.

[Company Representative] (Tencent Music): Well, as our IP related business is growing robustly, which will have some structural pressure on our overall GP margin. We will keep optimizing our costs and adopt project basis measures to control costs and also use our content platform, content plus platform strategy, online plus offline, and also increasing the percentage of contribution of our own proprietary IP business. With all of these measures, we can maintain a steady profit.

[Translator]: Well, as our IP related business is growing robustly, which will have some structural pressure on our overall GP margin. We will keep optimizing our costs and adopt project basis measures to control costs and also use our content platform, content plus platform strategy, online plus offline, and also increasing the percentage of contribution of our own proprietary IP business. With all of these measures, we can maintain a steady profit.

Speaker #3: Well, as our IP related business is growing robustly, which will have some structural pressure on our overall GP margin, but we will keep optimizing our costs and adopt project phases project phases measures to control costs and also will use our content platform content plus platform strategy online plus offline and also improving increasing the percentage of contribution of our own proprietary IP business and with all of these measures we can we can maintain a steady profit。

Speaker #1: 长期来看呢，我们对我们的毛利率保持行业的优秀水平是有信心的。

Speaker #3: 我 as our IP related business is growing robustly, which will have some structural pressure on our overall GP margin. But we will keep optimizing our costs and adopt project basis project basis measures to control cost and also will use our content platform content plus platform strategy online plus offline and also improving increasing the percentage of contribution of our own proprietary IP business.

Speaker #3: In the long run, we are very confident to stay at the front line of our GP margin in the industry。

Speaker #1: 还有销售费用。对，那么讲到销售费用呢，确实在一季度是增长了 36%。那么这个是我们面对这个日趋激烈的这个市场竞争，我们战略性的加大了音乐平台的这个获客的投入。那么我们聚焦广点通字节等渠道的优质点位的流量，精准定向高价值的用户，并结合星光卡等易粉的内容进行推广。那么渠道投放用户质量和效率都有明显的提升。

Speaker #3: And with all of these measures, we can maintain a steady profit.

Speaker #3: Well, as to the question about selling expenses in Q1, it went up by 36% year on year. That's mainly because of the intensifying competition in the industry.

Speaker #1: 长期来看呢，我们对我们的毛利率保持行业的优秀水平是有信心的。

Shelly: 长期来看，我们对我们的毛利率保持行业的优秀水平是有信心的。

Shirley Hu: 长期来看，我们对我们的毛利率保持行业的优秀水平是有信心的。

Speaker #3: In the long run, we are very confident to stay at the front line of our GP margin in the industry.

[Company Representative] (Tencent Music): In the long run, we are very confident to stay at the frontline of our GP margin in the industry.

[Translator]: In the long run, we are very confident to stay at the frontline of our GP margin in the industry.

Speaker #3: And in face of such intensifying competition, we have to take a strategic increase in our expenses. In user acquisition for our music platforms, we're using different channels like ByteDance to acquire higher value users and we're also using the like card of artists to acquire more high quality high value users。

Shelly: 还有销售费用。那么讲到销售费用呢，确实在一季度是增长了36%。那么这个是我们面对这个日趋激烈的这个市场竞争，我们战略性地加大了音乐平台的这个获客的投入。那么我们聚焦广点通、字节等渠道的优质点位的流量，精准定向高价值用户，并结合星光卡等付费的内容进行推广。那么渠道投放用户质量和效率都有明显的提升。

Shirley Hu: 还有销售费用。那么讲到销售费用呢，确实在一季度是增长了36%。那么这个是我们面对这个日趋激烈的这个市场竞争，我们战略性地加大了音乐平台的这个获客的投入。那么我们聚焦广点通、字节等渠道的优质点位的流量，精准定向高价值用户，并结合星光卡等付费的内容进行推广。那么渠道投放用户质量和效率都有明显的提升。

Speaker #1: 那么我们也增加了自有内容的推广的投入。那么进一步提升歌曲的曝光的热度，强化平台内容的核心竞争力，来使得这个我们的提升平台用户的粘性。

Speaker #3: As to the question about the selling expenses in Q1, to venture by 36% year on year, that's mainly because of the intensifying competition in the industry.

[Company Representative] (Tencent Music): Well, as to the question about selling expenses in Q1, it went up by 36% year on year. That's mainly because of the intensifying competition in the industry. In face of such intensifying competition, we have to take strategically increasing our expenses in user acquisition for our music platforms. We're using different channels like ByteDance to acquire higher value users, and we're also using the Starlight cards of artists to acquire more high quality, high value users.

[Translator]: Well, as to the question about selling expenses in Q1, it went up by 36% year on year. That's mainly because of the intensifying competition in the industry. In face of such intensifying competition, we have to take strategically increasing our expenses in user acquisition for our music platforms. We're using different channels like ByteDance to acquire higher value users, and we're also using the Starlight cards of artists to acquire more high quality, high value users.

Speaker #3: In the meantime, we're also promoting our proprietary content increase the music exposure and also increase the core competitiveness of our own content with all of these measures we try to increase the thickness of our users。

Speaker #1: 那么另外呢，我们依托这个腾讯系，我们今年也会将资源重点投向微信视频号的生态战略的合作。那么帮助视频号建设音乐生态。

Speaker #3: Well, with the Tencent ecosystem this year, we will allocate some strategic resources with WeChat channels and we will help WeChat channels establish its own music system。

Shelly: 同时，我们也增加了自有内容的推广的投入，那么进一步提升歌曲的曝光的热度，强化平台内容的核心竞争力，来使得这个我们的提升平台用户的粘性。

Shirley Hu: 同时，我们也增加了自有内容的推广的投入，那么进一步提升歌曲的曝光的热度，强化平台内容的核心竞争力，来使得这个我们的提升平台用户的粘性。

Speaker #1: 那如为视频号引入音乐人头部歌手和工作室，并且和腾讯视频的头部的音中器合作宣发，来提升视频号给 TME 引流的效率。

Speaker #3: In the meantime, we're also promoting our proprietary content to increase music exposure and also increase the core competitiveness of our own content. With all of these measures, we try to increase the thickness of our users.

[Company Representative] (Tencent Music): In the meantime, we're also promoting our proprietary content, increase the music exposure, and also increase the core competitiveness of our own content. With all of these measures, we try to increase the stickiness of our users.

[Translator]: In the meantime, we're also promoting our proprietary content, increase the music exposure, and also increase the core competitiveness of our own content. With all of these measures, we try to increase the stickiness of our users.

Speaker #3: And we will work with the top tier musicians singers and studios and we will do some joint promotions and even releases with them so as to create and improve the overall efficiency of our collaboration。

Speaker #1: 那么另外呢，我们依托这个腾讯系，我们今年也会将资源重点投向微信视频号的生态战略的合作。那么帮助视频号建设音乐生态。

Shelly: 另外，我们依托这个腾讯系，我们今年也会将资源重点投向微信视频号的生态战略的合作，帮助视频号建设音乐生态。

Shirley Hu: 另外，我们依托这个腾讯系，我们今年也会将资源重点投向微信视频号的生态战略的合作，帮助视频号建设音乐生态。

Speaker #1: 那预计假以时日呢，随着视频号生态音乐生态的完善，借助微信生态的流量红利，TME 能有效提升的获客的效率。

Speaker #3: With the Tencent ecosystem this year, we will allocate some strategic resources with WeChat channels and we will help WeChat channels establish its own music system。

[Company Representative] (Tencent Music): With the Tencent ecosystem this year, we will allocate some strategic resources with WeChat Channels, and we will help WeChat Channels establish its own music system.

[Translator]: With the Tencent ecosystem this year, we will allocate some strategic resources with WeChat Channels, and we will help WeChat Channels establish its own music system.

Speaker #3: We expect that in the future with the mature maturization of the WeChat channels music platform plus our own content contribution and we will achieve a win-win result on two platforms。

Speaker #1: 那如为视频号引入音乐人头部歌手和工作室，并且和腾讯视频的头部的音中器合作宣发，来提升视频号给 CME 引流的效率。

Shelly: 那如为视频号引入音乐人、头部歌手和工作室，并且和腾讯视频的头部的音综去合作宣发，来提升视频号给TME引流的效率。

Shirley Hu: 那如为视频号引入音乐人、头部歌手和工作室，并且和腾讯视频的头部的音综去合作宣发，来提升视频号给TME引流的效率。

Speaker #1: 那么预计全年的销售费用会有合理的增加，跟我们之前引导的全年的增长比例基本一致。那不会像 Q1 这样就是说达到 36% 这么高的一个比例吧。

[Company Representative] (Tencent Music): We will work with the top tier musicians, singers, and studios, and we will do some joint promotions and even releases with them so as to create and improve the overall efficiency of our collaboration.

[Translator]: We will work with the top tier musicians, singers, and studios, and we will do some joint promotions and even releases with them so as to create and improve the overall efficiency of our collaboration.

Speaker #3: For the whole year, the selling expense will have a reasonable rise and which will be in line with our previous year guidance and will in the following of course it will not be growing as fast as 36%。

Speaker #1: 那预计假以时日呢，随着视频号生态音乐生态的完善，借助微信生态的流量红利，TME 能有效提升的获客的效率。

Shelly: 预计甲乙时日呢，随着视频号生态、音乐生态的完善，借助微信生态的流量红利，TME能有效提升获客的效率。

Shirley Hu: 预计甲乙时日呢，随着视频号生态、音乐生态的完善，借助微信生态的流量红利，TME能有效提升获客的效率。

[Company Representative] (Tencent Music): We expect that in the future, with the materialization of the WeChat Channels music platform, plus our own content contribution, and we will achieve a win-win result on two platforms.

[Translator]: We expect that in the future, with the materialization of the WeChat Channels music platform, plus our own content contribution, and we will achieve a win-win result on two platforms.

Speaker #1: Okay, thank you Shirley. And thank you everyone for the interest of time. I will wrap up today's call. If you have any further questions, please feel free to contact the IR team and this concludes today's call and thank you again.

Speaker #1: 那么预计全年的销售费用会有合理的增加，跟我们之前引导的全年的增长比例基本一致。那不会像 Q1 这样就是说达到 36% 这么高的一个比例吧，对。

Shelly: 预计全年的销售费用会有合理的增加，跟我们之前引导的全年的增长比例基本一致。不会像Q1这样，达到36%这么高的一个比例。对。

Shirley Hu: 预计全年的销售费用会有合理的增加，跟我们之前引导的全年的增长比例基本一致。不会像Q1这样，达到36%这么高的一个比例。对。

Speaker #1: Look forward to speaking next quarter.

Speaker #3: Thank you. Thank you. Bye bye.

Speaker #3: For the whole will have a reasonable rise and which will be in line with our previous full year guidance and will in the following of course it will not be growing as fast as 36%。

[Company Representative] (Tencent Music): For the whole year, the selling expense will have a reasonable rise and which will be in line with our previous year guidance and will in the following quarters, it will not be growing as fast as 36%.

[Translator]: For the whole year, the selling expense will have a reasonable rise and which will be in line with our previous year guidance and will in the following quarters, it will not be growing as fast as 36%.

Speaker #1: Okay, thank you Shelly. And thank you everyone for the interest of time. I will wrap up today's call. If you have any further questions, please feel free to contact the IR team and this concludes today's call.

Shelly: Okay. Thank you, Sha Ming. Thank you everyone. For the interest of time, I will wrap up today's call. If you have any further questions, please feel free to contact the IR team. This concludes today's call. Thank you again. Look forward to speaking next quarter.

Shirley Hu: Okay. Thank you, Sha Ming. Thank you everyone. For the interest of time, I will wrap up today's call. If you have any further questions, please feel free to contact the IR team. This concludes today's call. Thank you again. Look forward to speaking next quarter.

Speaker #1: And thank you again. Look forward to speaking next quarter.

Speaker #3: Thank you. Thank you. Bye-bye.

[Company Representative] (Tencent Music): Thank you.

[Translator]: Thank you.

Shelly: Okay, bye bye.

Shirley Hu: Okay, bye bye.

Shelly: Bye bye.

Shirley Hu: Bye bye.