Tencent Holdings Limited

Good day and thank you for standing by. Welcome to Tencent Holdings Limited 2021 First Quarter Results Announcement Conference Call. Well, 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 the question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. Now I'd like to hand the conference over to Ms. Wendy Huang from Tencent IR team. Thank you. Please go ahead, ma'am.

Thank you, Amber. Good evening. Welcome to our 2021 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 it 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 introduce the management team on the call tonight. Our chairman and the CEO, Pony Ma, will kick off with a short overview. President Martin Lau will discuss strategy review. Chief Strategy Officer James Mitchell will speak to business review, and Chief Financial Officer John Lowe will conclude with financial discussion before we open the floor for questions. I will now turn the call over to Pony.

Thank you, Wendy. Good evening. Thanks, everyone, for joining us. During the first quarter, we achieved solid growth across our businesses, in particular in our fintech and business services and advertising revenue streams. We are also stepping up investment in areas including business services and enterprise software, high production value games and short form video, which will be covered in more details in the strategy section. Now let me go through the headline financial numbers for the quarter. Total revenue was 135 billion RMB up 25% year-on-year and 1% quarter-on-quarter. Gross profit was 63 billion RMB up 19% year-on-year and 6% quarter-on-quarter. Non-IFRS operating profit was 43 billion RMB, up 20% year-on-year and 12% quarter-on-quarter. Non-IFRS net profit achievable to equity holders was 33 billion RMB, up 22% year-on-year and stable quarter-on-quarter. For our key services, despite intense competition across the China internet industry, We generally extend our first-place position in activities, including social, games, long-form video, news, music, literature, payment, and mobile utilities. And we believe we gain market share in cloud services. Combined MAU of WeChat was $1.24 billion. Mobile devices MAU of QQ was $606 million. Marty and James will discuss our future strategy and progress across some of these activities in detail. And I hand over to Marty for the strategy review.