Tencent Holdings Limited

Good day and thank you for standing by. Welcome to Tencent Holdings Limited 2021 Fourth Quarter and Annual Results Announcement Conference Call. At this time, all participants are listening only loud. 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 and the number one on your telephone. And please be advised that today's conference is being recorded. If you require any further assistance, Please press star zero. And now I would like to turn the conference over to Ms. Wendy Huang from TENS and IR team. Thank you. Please go ahead.

Thank you, Operator. Good evening, everyone. Welcome to our 2021 Fourth Quarter and Annual 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 group's financial performance propelled 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. Now, let me introduce the management team on the call tonight. Our Chairman and CEO, Paul Ni Ma, will kick off with a short overview. President Martin Lau will discuss strategy review. Chief Strategy Officer James Mitchell will provide a business review. And Chief Financial Officer John Lau 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, everyone. Thank you for joining us. 2021 was a challenging year. During the year, we embraced change and implemented certain measures that reinforces the company's long-term sustainability, but had the effect of slowing our revenue growth. Despite financial headwinds, we have continued to make strategic headwinds. Our wage-sharing ecosystem grew increasingly violent, delivering more value to users and partners. Long-term diversity and video views increased significantly in video accounts. Many programs facilitate independent merchants to thrive within their own private domain, bubbling their fiscal good GNV year-on-year. Our healthy code served 1.3 billion users with 180 billion total visits since its launch, becoming the most-used ePath for verifying health and travel figures during the pandemic. For Tencent Cloud, we deepened integration among three faster-growing SaaS products. Wecon, Tencent Meeting, and Tencent Docs together facilitate more efficient collaborations and workflows, both within and between organizations. Our video cloud solutions rank number one in the domestic market by revenue, and we also provide other industry-leading task services. In games, we launched League of Legends Wild Rift and five of the Golden Spatula, the two highest-ranked new mobile games by DAU in China. We also developed and operate five out of the top 10 mobile games outside China by DAU, and increased international contribution to game revenue to 26%. Shintech business was stable as we operate with the prudence, cooperation, and expertise Looking forward, we believe the China internet industry is structurally shifting to a healthier mode, characterized by the focus on user value, technology innovation, and social responsibility. We are proactively adapting to the new environment by optimizing cost, increasing efficiency, sharpening our focus on key strategic areas, and repositioning ourselves for sustainable long-term growth. Summarizing our financial numbers, our revenue grew slower while our costs increased for the first quarter, without a year-on-year earnings decline. Total revenue was 144 billion RMB, up 8% year-on-year and 1% quarter-on-quarter. Growth profit was 58 billion RMB, up 2% year-on-year and 8% quarter-on-quarter. Non-IFI operating profit was 33 billion RMB, down 13% year-on-year, or 19% quarter-to-quarter. Non-IFI net profit attributable to equity holders was 25 billion RMB, down 25% year-on-year, and 22% quarter-to-quarter. For our key services, we generally became our first place a position in activities including social, games, long-form video, music, literature, payment, and mobile utilities. Combined MAU of WeChat and WeChat was $1.27 billion. Mobile devices MAU of QQ was $552 million. Now, I will hand over to Martin for the strategy review.