Tencent Holdings Limited

Ladies and gentlemen, thank you for standing by and welcome to Tencent Holdings Limited 2020 Fourth Quarter and Annual Results Announcement Conference 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 today, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Ms. Wendy Huang from Tencent Investor Relations. Thank you. Please go ahead.

Thank you, operator. Good evening. Welcome to our 2024 quarter and annual results conference call. I'm Wendy Huang from Tencent IR team. 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 prepared in accordance with IFRS. For a detailed discussion of risk factors and non-IFRS measures, please refer to our disclosure documents on the IR section of our website. Let me now introduce the management team on the call tonight. Our Chairman and CEO, Pony Ma, will kick off with a short overview including ESG initiatives. President Martin Lau will discuss strategy review. Chief Strategy Officer James Mitchell will speak to business review. and Chief Financial Officer John Low will conclude with financial discussion before we open the floor for questions. I will now turn the call over to Pony.

Okay. Thank you. Good evening, everyone. Thank you for joining us. 2020 was unprecedented with many challenges. Having said that, we delivered a solid result. We believe our robust operating and financial results testify to our focus on user value and technology innovation. Let me walk you through some of our key achievements. In social, we strengthen WeChat's value proposition for users and enterprises. Our new feature, video accounts, enable public sharing of informative and educational content. in video format. Many programs continue to deepen penetration in more user cases with annual transaction volume more than doubling year-on-year. For QQ, we increase thickness among young users by enriching shared experience and catering to their entertainment and e-learning needs. In games, our worldwide revenue grew 36% year-on-year with increasing contribution from international markets. We reinforce our leadership across mobile and PC by expanding user basis for major games and launching successful new games. In content, we extend IP value across literature, animate games, and long-form video to create unique and appealing content. we became career number one in China video subscription market. In advertising, we integrated advertising platforms, strengthening Tencent's own properties as well as mobile ad network of preferred choices for advertisers. In fintech services, payment user engagement and commercial payment volume increased healthily. we will continue to work closely with the regulators and industry partners to deliver compliant fintech products while prioritizing risk management over scale. In business services, Tencent Meeting has become the largest standalone app for cloud conferencing in China. Innovation such as our customized StarLake server solution and self-developed T-Block data center technology to enhance our cloud services performance and cost efficiency. Now, let me go through the headline number for the first quarter. Total revenue was 134 billion RMB up 26% year-on-year and 7% quarter-on-quarter. Worst profit was 59 billion RMB up 28% year-on-year and 4% quarter-on-quarter. Non-IFRS operating profit was 38 billion RMB, up 26% year-on-year and stable quarter-on-quarter. Non-IFRS net profit attributable to equity holders was 33 billion RMB, up 30% year-on-year and 3% quarter-on-quarter. Moving to key services, in social, combined NAO operation and return further rose to 1.23 billion. Smart Devices MAU of QQ was 595 million. And Marty and James will speak to each of our other key services later. In 2020, we continue to implement various initiatives around our mission of Tech for Good. As the world navigates through COVID-19, technology plays a more significant role in restoring normal life and business activity. We provide users with convenient access to healthcare, education, and public services via our products and technology. We help enterprise clients to maintain business continuity with various tools and products. Many programs and reaching pay facilitate consumer spending during the lockdown and exercise digitalization of offline retailers and brand after that. For charities, we have built an efficient online fundraising platform and utilized technology to assist their digital upgrade. In 2020, our flagship event, Double Night Giving Day, engaged over 18 million users and 10,000 charities, raising 3 billion RMB in three days. For inclusion, We are bridging the digital divide for the elderly and the disadvantaged. Raising relative costs enables senior users to enjoy the benefits of digital payment without hassle. An image-to-speech in QQ helps visually impaired users interact with friends. We are also facilitating a rural virtualization with the We County initiative. For other ESG commitments, we are moving toward carbon neutrality by leveraging AI big data and cloud computing. We adhere to privacy by design and deploy advanced security technology to safeguard users' data. To advocate the digital well-being for teenagers users in China, we continuously upgrade our healthy gameplay system. Looking forward, we will continue to integrate their social responsibility into our operations, products, and services, creating long-term value for all stakeholders. I will now invite Martin to discuss strategy review.