Tencent Music Entertainment Group

Before we continue, I'm referring to the State of Harvard statement in our earnings release. Students. Please note that we discuss non-IFRS measures today, which are not thoroughly sworn and reconciled to the most comparable measures reported under IFRS in readiness reviews and balance with the SEC. All participants are muted at this time. After management's remarks, there will be a Q&A session, and please be advised that today's call is being recorded. With that, I'm pleased to turn the call over to Kashin.

Thank you, Millicent. Hello, everyone, and thank you for joining our call today. In the second quarter, we deliver resilience performance while navigating a compact and evolving market. Our second growth engine continued to strengthen. Revenue from marketing and consumption service achieved another quarter of solid growth as we further expanded the value of music IP through live concerts, merchandise, and other IP-driven experiences. The addition of Simalaya marks another important step in our content and platform strategy. By bringing music and audio together, we are enriching our content offering, reaching users across more listening occasions and giving them more ways to discover, enjoy and engage with great content. Our strategy is clear. We are strengthening our content ecosystem by deepening strategic partnerships, developing more proprietary IP, and extending premium content across a wider range of expenses. First, Premium content remains at the heart of this strategy, and the recent momentum we are seeing with classic catalogs is a perfect example. His variety shows and concert tours have amplified the reach of this work, making loyal fans more engaged while drawing in new generations of listeners. This has led to continuous growth in their streaming share. Second, we continue to expand our partnerships beyond traditional content licensing. Recently, we deepened our partnerships with Dream Music Group. In addition to securing digital first releases for its top artists, we expanded our collaboration into new areas, including content co-creation, physical offerings, and offline experiences. At the same time, we partnered with Hua Ce Film and TV, Wuyi Film Entertainment, and Zhejiang Satellite TV to bring original soundtracks and popular music variety shows to our platform, creating a more immersive connection between music and visual entertainment. These deeper partnerships allow us to work more closely with creators and rights holders across the whole music value chain, enabling us to create more value from premium IP. Third, another key focus is developing more high quality proprietary content. which is becoming an increasingly important differentiators for TME and giving users more reasons to engage with our platform. Examples include Zhou Shen's Blast Into Bloom, Re Lie Sheng Kai, the theme song for the 2026 Jiangsu Football City League, Liu Yuling, Browse a Little Light from Ordinary Days, 平凡的日子借一点光, Google Music's new brand anthem, and the theme song and insert song for the hit animated film All Wishes Come True, 八仙, all of which recorded strong streaming performance since their release. Fourth, Simalaya further strengthens our content advantage with its premium audiobooks and podcasts. By adding popular categories like online novels, history, kids' content, and education, we can reach users across many other more listening occasions, ultimately enhancing user time spent and engagement within our ecosystem. What really stands out is Simalaya's ability to create its own hits. Its original productions have consistently driven strong engagement and pay conversion. In fact, line of its top 10 new online local titles this year were produced in-house, underscoring both the strength and scalability of its original content capabilities. Just as importantly, owning these hits also means better economics. With the strength of our content and platform ecosystem, deep user insights, expansive services, and a strong commitment to upholding copyright protection, a growing number of artists are turning to us as we expand talent development and artist management. This is a natural extension of our ecosystem that creates value for artists we are uniquely positioned to deliver. This is exciting as it empowers us to be more entrepreneurial and innovative in bringing more premium content and IP-driven immersive music experiences to music lovers. First, take rapper Zhou Yan, Guy for instance. As his strategic partner, we have supported him across content promotion, IP development, and concert planning, helping him expand into new markets and formats and grow from arena shows to stadium concerts. Following the success of his evolution tool in Asia, we launched Will.G, the first Chinese language web stadium tool in China. More than 30,000 fans attended his opening show in Xi'an. Pia Wei, Yuan Yawei is another good example. Her Once Upon a Moon tour wrapped up with two consecutive sold-out arena shows in Hangzhou and is now reaching international markets, showcasing her rising profile and growing fan base. We are also helping artists expand into new opportunities. For renowned actor and singer Steven Zhang, Zhang Xingcheng, we produced his debut arena tour, New Journey, and his opening show in Shenzhen sold out quickly during pre-sales. Second, recently we invested in The Black Label to deepen our collaboration on a broader range of IP-related initiatives, including artist promotion and merchandise development, helping leading artists to build deeper connections with their audience in China. This strategic partnership reflects our commitment to exploring cross-border opportunities and deepening the fan-based economy. By integrating content creation, music streaming, artist development, live experiences, merchandise and fans engagement, we are able to create more value from premium IP, truly bringing the IP to life. We are already seeing encouraging results. IP related consumption services, particularly live events and artist merchandise, continue to deliver strong double digit year over year growth during the quarter. First, in live entertainment, we host three fan meetings in Macau for SM Entertainment's trainee group, SMTR25. The event attracted tens of thousands of fans and generated strong merchandise sales. TIMA, our proprietary flagship concert IP for international music awards, is becoming a larger and more influential brand in just its second year. Building on last year's success, we scaled up the venue to Kai Tak Sports Stadium in Hong Kong, including audience capacity by more than three folds, capturing music lovers' growing enthusiasm. Second, artist merchandise also continue to gain momentum. By bringing together our capabilities in IP development, product design, merchandising, and distribution, we are creating more meaningful connections between artists and their fans. During the quarter, we produced Zhou Shen's physical albums in both CD and vinyl formats, complemented by a range of collectibles, merchandise that generated strong fan demand. Physical album releases from Cai Xu Kun, Chen Chusheng, and Pu Yixing also delivered impressive results. Protecting copyright is fundamental to preserving the long-term value of premium IP. During the quarter, we continue to strengthen our copyright protection efforts through proactive screening and takedown, legal action, and closer collaboration across the industry. As AI continues to evolve, we are stepping up our engagement with regulators, music labels, artists, and other industry partners to strengthen copyright protection in the new era. By working together across the industry, we believe we can foster a healthier environment for creators, reinforce the long-term value of premium IP, and support the sustainable development of the music industry. We remain committed to providing a safe and enjoyable music experience for users of all ages. During the second quarter, with comprehensive upgrades to use both across our core products, we created a dedicated library of age-appropriate music, helping younger users discover and enjoy music in a safer and more trusted environment. To conclude, while challenges remain, we believe we are still in the early innings of unlocking the full potential of premium IP. We are excited about the opportunities ahead and remain confident in our ability to deliver sustainable long-term growth. With that, I will turn the call over to Ross.

Thank you, Kar Shun. Hello, everyone. While the competitive landscape continues to evolve, our commitment has not changed, delivering the best music and audio experiences for our users. Every user listens differently. That's why we continue to innovate our products, broaden our users' reach, and enrich our membership offerings. In the second quarter, our focus on user experience translated into stronger engagement with average daily time spent continue to improve, supporting standing growth in membership revenue. Product innovation remains at the heart of everything we do to serve our users. This quarter, we created a more seamless discovery to playback journey through improvements in content discovery and audio quality. In his content discovery features, such as swipe tabs and video feeds, help users explore more relevant content in a more engaging way. Newly introduced 3D Nika, 3D in audio also allowed premium users to experience premium sound quality from their very first listen. Thoughtful application of AI also made music discovery more intuitive and personalized. We upgraded our AI agents across QQ Music and Google, enabling them to better understand nuanced user intents. Acting as personal DJs, these AI agents can now instantly create personalized playlists tailored to users' listening needs in the moment. Together, these improvements help users discover more content, boost their time spent on our platform, and increase the share of recommendation-driven streams. We are delivering great services as a foundation. Reaching more users is equally important. That's why we are continuing to deepen our integration with the Tencent ecosystem to expand our presence across more user touchpoints. First, we depend on our cooperation with vision video accounts by bringing leading labels, top artists, and independent musicians into its ecosystem. We are creating a more seamless journey from music discovery to full track listing on TME. Collaborations with Weixin Pei also helped our lightweight products, such as Bodian Music and Kugoo Concept, attract users looking for simple music experience and deepen their engagement. Furthermore, we recently integrated with Weixin's AI agent, Xiao Wei. We are pleased that by typing into Weixin's massive user base, More users can now discover songs, generate playlists, stream music with easy commands, and instantly share favorite tracks with friends. Together, these initiatives are expanding our user reach, improving conversion and engagement, as well as enhancing content distribution across the Tencent ecosystem. Second, we are also extending our user reach beyond mobile and the PC into cross-device listening scenarios. During the quarter, we broaden our smart vehicle coverage through deeper collaborations with leading automakers, including Chang An, Li Auto, and Xiaopeng, and introduced the LMPOD search to deliver a smarter in-car experience. We are also among the first music platform to integrate with Harmony OS expanding our reach within its fast-growing ecosystem. Such a move has transferred our presence among Harmony OS users and positioned us to capture new opportunities for further monetization. We are excited to welcome Shimalaya to the TME family. Music and audio naturally complement each other. They broaden our content offering and create more listening occasions throughout the day. This helps strengthen our position as a comprehensive music and audio platform. We are still in the early stages of unlocking the full potential of this combination and we are seeing significant opportunities ahead. By bringing together our complementary strengths, we can deliver compelling content to a much broader audience. We are starting to enrich our SYP offering with premium audio content to create richer listening experiences. Over time, we also see opportunities to strengthen our advertising business and improve efficiency, leveraging our shared technology and infrastructure. We believe these efforts will create lasting value for our users, creators, partners, and shareholders. Finally, we are further elevating the SIP value proposition by transforming it into multi-dimensional experience centered on IP engagement. Premium music remains at its core, now complemented by premium audio and a growing portfolio of IP-driven member benefits. This quarter, digital albums and the tailored SYIP package continue to drive stronger member adoption and user engagement. Packages for Ren Jun, Huang Ren Jun, Lei Zhang, Zhang Yixing, aespa, and RISE feature the popular member benefits such as photo cards and NFC cards. We also expanded our Starlight Card line-up by adding artists from the Black Label, including Taiyang, Somi, Mewo, and All Day Project. Meanwhile, collaborations with popular gaming IPs such as Rising Waves, Mingchao, and Light and Night, Guangyu Yezhi Dian, brought new themed decorations to SYIP users, generating stronger user engagement and conversion. Together, these offerings contribute to health growth in our SYP user base, LRPU, time spent, retention, as well as consumption of other premium, unsolidary experiences. They reinforce our value proposition of one membership, richer experiences. To conclude, our journey reflects how we have evolved from a gateway for content into a strategic platform that actively shaped the music and audio entertainment landscape. Our focus remains steadfast, creating deeper and more meaningful connections between creators, content, and audiences. We are uniquely positioned and confident that we can translate these deep connections into long-term sustainable value across music and audio. With that, I would like to turn the call over to Shirley, our CFO, for a deep dive into our financials.