Tencent Music Entertainment Group

We'll be right back. Why can't I believe that you're in my dreams? I'm sorry that I lost you You used to look up to the mountains for me But I always made you blush But now I can't believe it We may not meet again People come and look at their old memories. Why do they wake up and go to their dreams? Why do they wake up and stay in their dreams? The nine windows in the sky are like the nine windows. The snow falls on the bottom of my heart. One thousand, one hundred, zero, one time in my eyes. Your outline is like a dream. If I remember it clearly, there is a shadow. When I wake up, that person is you. Every time I run towards you from my dream. I put the ending in your arms. I haven't seen you for a long time, where have you been? I've left a lot of memories for you I'm sorry that I lost you You once turned your eyes for me And I always made you blush Thank you. Thank you.

Good evening, good morning, and welcome to Tencent News Entertainment's fourth quarter and four-year 2025 earnings conference call. I'm Nolte, and you have a high hour. We announced our financial results earlier today before the U.S. market opened. The earnings release is now available on our website and by the newswire services. During today's call, you'll hear from Mr. Kashin Pong, our executive chairman, and Mr. Ross Leung, our CEO, who will share an overview of our company's strategies and business outputs. Then Ms. Shirley Wu, our CFO, will discuss our financial results before we open the call for questions. Before we continue, I refer you to the same privacy note in our end. Please note that we're discussing non-IFRS measures today, which are authorities going to reconcile to the most comparable measures reported under IFRS and that is reducing violence with the SEC. All participants are muted at this time. After management's remarks, there will be a cleaning session, and please be advised that today's call will be recorded. With that, I'll now turn the call over to Tushin, Executive Chairman of TNU. Tushin, please.

Thank you, Madison. Hello, everyone, and thank you for joining our call today. In 2025, we remain disciplined in executing our dual-engine content and platform strategy, delivering accelerated revenue growth and sustained margin expansion. Our differentiated all-in-one music service platform has fueled solid subscription growth and strong momentum across our non-subscription offerings. This enabled us to unlock crypto value from music IPs, create new opportunities for artists, and address a larger market. As a competitive landscape continues to evolve, our proven ability to deliver integrated, expensive, and multifaceted services give us a distinct competitive advantage. With disciplined investment and continued innovation focused on long-term value creation, we are confident in leading the industry advancement. Our competitive edge first and foremost stems from our industry leading music copyright portfolio. Building on our all high quality IP access, we have expanded a comprehensive suite of music services to create a holistic value for music creators and contribute to the long-term growth of music industry. Leveraging our deep insights into the industry, we have amplified our content strength and addressed the evolving listening preferences of our users. First, our timeless and classic music catalog foster deep emotional connections and serve as a cornerstone of our subscription business. This is why music can be so long lasting and enduring in terms of monetization. Pushing forward from a position of strength, he recently renewed the contract with Warner Music Group and Bean Music, exploring new avenues for physical albums, merchandise, and live performances. He also deepened the alliance with Media Asia Music, introducing Dolby Atmos to over 300 iconic tracks by legendary artists including Eason Chan, Ken Yixin, Leslie Zhang, Zhang Guorong, and Andy Lau, Liu Dehua. For the first time, elevating the value of our classics with a more immersive listening experience. Second, we continue to deepen differentiations through our proprietary content. The streaming share of our self-produced content keeps growing as listeners seek unique high-quality genres and musical experience. For example, our mid-autumn themed hit, Year After Year, Shui Shui Nian Nian, performed by Shao Zhan, charted in 17 countries and regions and generated over 100 million social media views in a single day. Furthermore, our capability to craft hits OSTs continues to strengthen. In the fourth quarter, we produced a bespoke 14-track OST suite for Tencent Video's hit drama, Shine On Me, which topped multiple music charts during the drama's broadcast. In addition, several of our co-producer songs were featured on the 2026 CMG Spring Festival Gala, which then quickly went viral with multiple tracks surprising 10 million streams in just a few days. Third, we continue to gain share among younger users, thanks to our coverage of genres that resonate well with these user cohorts. K-pop, for instance, is capturing and increasing shares of streams. Our recently renewed partnership with P Nation Corporation secured a 30-day Head Start benefit to new releases from top Korean artists and groups, such as Psy, Crush, Hwasa, Baby Don't Cry, and TNX. Keeping users at the forefront of global trends, our thriving Tencent Musician platform and established avenue for indie and up-and-coming artists is also vital to meeting the growing appendage of young audiences. for diverse music styles. This quarter, we partnered with the indie band Fine, a music group with over a million followers. Their tracks, including the viral Kid's Breathing Decision, Hu Xi Jue Ding, sparked an enthusiastic community interaction among young users. Years of dedication efforts and our distinctive competitive edge within the content and platform ecosystem have enabled us to accelerate the comprehensive expansion of our music services. We believe this is quite unique to TME, enabling us to continue leading music consumption along the entire music industry chain. Beyond music subscription, we see tremendous potential in other music related value added services. We aim to grow and expand our total adjustable market sustainably, guarded by our deeply rooted and strong conviction in serving, protecting, and unlocking the full value of music IPs. Building on our momentum, we continue to push boundaries by hosting more high-quality live experiences that empower artists in expanding their audience reach. First, let me begin by highlighting that in 2025, we showcased our production capabilities with multiple flagship events, including G-Dragon's Chen Zhilong World Tour. The 20 concert tour across eight cities in Asia Pacific attracted over 260,000 fans. This highly sought after tour featured two landmark shows at the Taipei Dome in the fourth quarter, drawing over 75,000 fans. the largest scale events that we have hosted for him. This unprecedented success proved our ability to execute compact, high-profile tools and laid a solid foundation for future collaborations with top-tier international artists. Secondly, through continuous investment across the music value chain, we have built a diverse and robust lineup of strategic artists. We collaborate with them across music promotion, live performances, artist management, and merchandise. And these investments have begun to bear fruit. Contributing to strong growth in our non-subscription revenue in 2025, our strategic artist portfolio include Hai Lai Amu, Will Peng, Pan Wei Bo, Fiona Seed, She Kai Qi, Silence Wang, Wang Sulong, Kim Ji Woo, Wu Kequn, Tia Wei, Yuan Yaowei, Jane Zhang, Zhang Liangning, Angela Zhang, Zhang Shaohan, Zhang Yuan, and Guy Zhouyan. Through these efforts, we offer fans a richer array of music consumption and well-rounded entertainment experiences, while transforming music and artists into influential IPs, further extending their value and impact. Third, beyond live concerts, we continue to introduce innovative merchandise formats to spark new waves of fan-based consumption. A prime example was the Kid album for Ed Sheeran's latest release. Play, marking our first partnership with a top tier Western artist using this hybrid physical digital format. We also enhanced Esther Yu, Yu Shuxin's physical album, Spicy Honey, with a suite of collectible elements, pushing fans and they engaging engagement. In addition, we make a breakthrough in expanding artists' merchandise with new tour-themed collectibles, which are highly valued by fans as tangible extensions of the live concert's experience and emotional connections with their favorite artists. Our exclusive edition, Lei Zhang's, Zhang Yixing's, Grand Night Boundless, two special commemorative gift box, and a special release of Luhan's Erlin Erwu, Luhan's season four Asia tour commemorative album, integrated with SVIP privileges, both achieved strong sales across the board. I'm pleased to say that we more than double revenues of IP related merchandise and fan basic consumption as we exceeded 2025. As advertising and other IP-related offerings scale, and as we offer multi-tiered membership for online music subscription, the business impact of each paid membership varies. Given the significant evolution of our business model in recent years, our focus has moved beyond the number of paid subscribers and ARPPU. The operating matrix for our online music services adopted at our listing, instead, we are increasingly focused on revenue and profits as our primary performance indicators. Reflecting this shift, starting from the next quarter, we will continue to disclose the certain operating matrix on a quarterly basis. Going forward, we will report annually the number of total paying users across our music services as of year end. Last but not least, with social responsibilities and backed in our core strategy, we continue to improve accessibility and inclusive design, making our products more user-friendly. For example, QQ Music introduced a hearing protection mode for children, leveraging AI and user insights to reduce sharp and sensitive sounds for a safer and more comfortable listening experience. Meanwhile, WeSing upgraded its large front mode to better serve more users, with adoption exceeding 50%. To wrap up, our thriving dual-engine ecosystem, anchoring by content advantage, comprehensive service offerings, and innovative excellence, enable us to effectively serve a diverse range of user creators and friends while unlocking the IP value and enhancing monetization efficiencies. Looking ahead, we will continue to reinforce our core strength and broaden our reach to capture the significant growth opportunities before us. Now, I would like to hand the call over to Ross for a deeper dive into our overall platform development. Ross, please go ahead. Thank you. Thank you, Ka-hsuan.