Tencent Holdings Limited

Good day and thank you for standing by. Welcome to Tencent Holdings Limited 2022 first quarter results announcement conference call. At this time, all participants are in the listen only mode. After speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. And please be advised that today's conference is being recorded. If you require it, Require any further assistance, please press star zero. And now I'd like to turn the conference over to Ms. Wendy Huang from Tencent IR team. Thank you. Please go ahead.

Thank you, operator. Good evening. Welcome to our 2022 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 the 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 prepared in accordance with IFRS. For a detailed discussion of risk factors and non-IFRS measures, please refer to our disclosure documents on the IRS section of our website. Let me introduce the management team on the call tonight. Our Chairman and CEO, Paul Niema, will kick off with a short overview. Presidents Martin Lau 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 Tony.

Thank you, Wendy. Good evening. Thanks, everyone, for joining us. During the challenging first quarter of 2022, we implemented cost control initiatives and rationalized certain non-core businesses, which enabled us to achieve a more optimized cost structure going forward. We utilized tools such as mini programs and we come to help enterprises and consumers with the resurgence of COVID-19 in China and continue investing in strategic growth areas, including enterprise software, video accounts, and international games. Looking forward, we will sharpen our focus and sustain our innovations through challenges and cycles and continue to create value for our users, partners, and society. Now let me go through the headline financial numbers for the quarter. Total revenue was 135 billion RMB, largely stable year-on-year or down 6% quarter-on-quarter. Gross profit was 57 billion RMB, down 9% year-on-year and 1% quarter-on-quarter. Non-IFIS operating profit was 37 billion RMB, down 15% year-on-year or up 10% quarter-on-quarter. Non-ISIS net profit attributable to equity holders was 26 billion RMB, down 23% year-on-year, or up 3% quarter-and-quarter. For our key services, we generally retain our first-place positions in activities including social, games, long-term video, news, music, literature, payment, and mobile browsers. Combined MAU of WeChat was $1.29 billion. Mobile devices MAU of QQ was $564 million. Now I will hand over to Martin and James for the business review.