Tencent Holdings Limited

Ladies and gentlemen, thank you for standing by and welcome to the Tencent Holdings Limited 2020 First Quarter Result Announcement Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I will pass the call to Wendy Huang from Tencent I.O. team. Thank you. Please go ahead.

Good evening. Welcome to our 2020 First Quarter Results Conference Call. Before we start the presentation, we would like to remind you that it includes forward-looking statements, which are underlined by a number of risks and uncertainties, and may not be realized in the future for various reasons. Information about general market conditions is coming from a variety of sources outside of Tencent. This presentation also contains some unaudited non-IFRS financial measures that should be considered in addition to but not as a substitute for measures of the company's financial performance propelled in accordance with IFRS. Non-IFRS measures are intended to reflect our core earnings by excluding certain one-time and all non-cash items. For a detailed discussion of risk factors in non-IFRS measures, please refer to our disclosure on the IR section of our website. Now, let me introduce the management team on the call tonight. Our Chairman and CEO Pony Ma will kick off with a short overview. President Martin Lau and Chief Strategy Officer James Mitchell will provide a business review. Chief Financial Officer Jun Luo will conclude with financial review before we open the floor for questions. I will now turn the call over to Pony.

Thank you, Wendy. Thank you for joining our call at this unusual time. First of all, tackled COVID-19, our thoughts and hearts go out to all the people who are suffering from the pandemic. During this difficult period, we seek to provide online services that keep people connected, informed, productive, and entertaining. So far, our businesses have proved their resilience and cash flow generative, enabling us to increase our investment to fulfill our mission of tech for good. We are allocating time and resources, including over 2 billion RMB of donations to contribute to COVID-19 relief initiatives in China and globally. And now I will highlight the result we achieved in the first quarter of 2020. Total revenue was 108 billion RMB up 26% year-on-year and 2% quarter-on-quarter. Gross profit was 53 billion RMB up 33% year-on-year and 15% quarter-on-quarter. Our non-IFRS operating profit was 36 billion RMB up 25% year-on-year and 17% quarter-on-quarter. Non-IFRS net profit attributable to equity coders was 27 billion RMB, up 29% year-on-year, and 6% quarter-on-quarter. Our platforms and products have never been more neat and relevant as users say at home. We believe this experience will also lead to acceleration of digitalization going forward. In social, users heavily rely on our social platforms to stay connected. Combined MAU of WeChat increased 8% year-on-year to over 1.2 billion. In games, more players spend more time online, further strengthening our number one position in China. Our games also continue to grow internationally. In media, video views and subscriptions continue to expand as we release the top-tier content. Music subscriptions increase driven by effective content paywall strategies. In FinTech, we operate the largest mobile payment platform in China by DAU and number of transactions, increasing efficiency and supporting small business. In cloud, we are number two public cloud services provider in China, steadily picking up market share amid intense competition. In utilities, we maintain our industry leadership in mobile security, mobile browser, and Android app store in China. I will invite Martin and James to discuss business review.