Tencent Holdings Limited

Good day and thank you for standing by. Welcome to Tencent Holdings Limited 2021 Second Quarter Results Announcement Conference Call. At this time, all the participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you 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. And now I would like to turn the call over to Ms. Wendy Huang from the Tencent RR team. Thank you. Please go ahead.

Thank you. Good evening, everyone. Welcome to our 2021 Seventh 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. For a detailed discussion of risk factors in non-IFRS measures, please refer to our disclosure documents 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 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. In the second quarter, we enhanced our services and achieved healthy growth across our businesses, particularly business services and advertising, while our game revenue benefited from international growth. Now let me go through the headline number, financial number for the quarter. Total revenue was 138 billion RMB, up 20% year-on-year and 2% quarter-on-quarter. Gross profit was 63 billion RMB, up 18% year-on-year and stable quarter-on-quarter. Non-IFRS operating profit was 43 billion RMB, up 14% year-on-year and stable quarter-on-quarter. Non-IFRS net profit attributable to equity holders was 34 billion RMB, up 13% year-on-year and 3% quarter-on-quarter. For our key services, we generally retain our first-place positions 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 and WeChat was 1.25 billion. Mobile devices MAU of QQ was 591 million. Martin and James will discuss our strategy to help real economy and society as well as progress across different businesses. Now I will hand over to Martin for the strategy review.