Tencent Holdings Limited

Good day and thank you for standing by. Welcome to Tencent Holdings Limited Third Quarter 2021 Results Announcement Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question in another 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. If you require any further assistance, please press cell zero. And now, I'd like to turn the conference over to Ms. Jane Yip from Tencent IR team. Thank you. Please go ahead.

Thank you. Good evening, everyone. Welcome to our 2021 Third 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, as a substitute for measures of the group'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 CEO, Paul Liman, will kick off with a short overview. President Martin Laos and Chief Strategy Officer James Mitchell will provide a business review. 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, Jane. Good evening. Thanks, everyone, for joining us. During the third quarter, the Internet industry, including the domestic games industry and certain advertiser categories, adapted to new regulatory and macroeconomic developments. We are proactively embracing the new regulatory environment which we believe should contribute to a more sustainable development path for the industry. In the domestic game market, our industry is leading efforts in fully compiling with new regulations to significantly reduce minors' game time and spending, fostering a healthier gameplay environment. We also invest actively in key strategic areas, as well as in frontiers of technologies along with making new commitment in common prosperity initiatives. Looking forward, we are committed to delivering superior experiences to users, assisting enterprises to digitalize their operations and contributing to the society at large. Starting from this quarter, we disclose revenue from domestic and international games as new sub-segments under VAST. reflecting the increasing scale of our international games business. Now let me go through the headline number, the financial number for the quarter. Total revenue was 142 billion RMB up 13% year-on-year and 3% quarter-on-quarter. Gross profit was 63 billion RMB up 11% year-on-year and stable quarter-on-quarter. Non-IFIs operating profit was 41 billion RMB up 7% year-on-year or down 5% quarter-on-quarter. Non-IFRS net profit achievable to equity holders was 32 billion RMB, down 2% year-on-year, and 7% quarter-on-quarter. Moving to our key services, we focus on upgrading technologies and product innovations, maintaining our first or second place market position across key businesses, including social, games, digital content, payment, and public cloud services. Combined MAU of WeChat and WeChat was 1.26 billion. Mobile devices MAU of QQ was 574 million. Now I will hand over to Martin and James for the second review.