Tencent Songs Home Entertainment Team Announces Third Quarter 2022 Unaudited Financial Outcomes

November 15, 2022

SHENZHEN, China, Nov. 15, 2022/ PRNewswire/– Tencent Songs Home Entertainment Team (” TME,” or the “Firm”) (NYSE: TME and also HKEX: 1698), the leading on the internet songs and also sound enjoyment system in China, today revealed its unaudited economic outcomes for the 3rd quarter finished September 30, 2022

Financial and also Operational Emphasizes

In the 3 months finished September 30, 2022:

  • Web earnings of the Firm was RMB1.09 billion ( US$ 154 million), standing for a 38.7% boost year-over-year and also a 22.5% boost on a consecutive basis. Non-IFRS web earnings of the Firm[1] was RMB1.41 billion ( US$ 198 million), standing for a 32.7% boost year-over-year and also a 32.5% boost on a consecutive basis.
  • Overall earnings were RMB7.37 billion ( US$ 1.04 billion), standing for a 5.6% year-over-year decline and also a 6.7% boost on a consecutive basis.
  • Earnings from songs memberships were RMB2.25 billion ( US$ 316 million), standing for a boost of 18.3% year-over-year. Paying customers got to 85.3 million, raising by 19.8% year-over-year. On a consecutive basis, the variety of on the internet songs paying customers expanded by 2.6 million.
  • Web earnings attributable to equity owners of the Firm was RMB1.06 billion ( US$ 149 million) and also Non-IFRS web earnings attributable to equity owners of the Firm[1] was RMB1.38 billion ( US$ 194 million).
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” As we are using a well balanced method to expand paying customers and also ARPPU, earnings from on the internet songs solutions boosted at a healthy and balanced speed in the 3rd quarter, driven by year-over-year gains in memberships. On the other hand, efficient price optimization procedures and also boosted running effectiveness caused boosted earnings in the middle of difficult macro problems this quarter,” claimed Mr. Cussion Pain, Exec Chairman of TME. ” Leveraging our double engine content-and-platform approach, we presented extra sources and also maximized solutions to equip songs web content designers and also artists with the devices they require and also songs fans with the noises and also attributes they desire. Each brand-new aspect we provide drives the growth of our service and also the general market. In addition, finishing our listing on the Key Board of The Stock Market of Hong Kong, along with our key listing on the NYSE, shows our dedication to safeguarding lasting worth for investors. Likewise, as a token of self-confidence in our Firm’s brilliant future, since completion of the 3rd quarter, we had actually redeemed over $ 800 million of our supply, according to the $ 1 billion share bought program we revealed in 2015.”

” Driven by our ingenious spirit, we presented various immersive and also connective item upgrades in the 3rd quarter. Individuals currently have much more one-of-a-kind methods to connect with our web content and also with each other as they pay attention, enjoy, sing and also play,” claimed Mr. Ross Liang, CHIEF EXECUTIVE OFFICER of TME. “Today, we accommodate even more varied songs preferences and also nuanced individual needs than in the past. Boosted experiences, along with even more benefits, convert right into brand-new, appealing money making chances for us to proactively use, such as TME Live, TMELAND, Super VIP Subscription, Musician Membership and also extra. To supplement our broadening globe of songs web content, we additionally presented a variety of tech-supported devices to help with long-form sound podcast production. Our strengthened link with Tencent’s more comprehensive ecological community has actually remained to boost our web content manufacturing, promo and also money making capacities. Lastly, creating songs experiences with definite favorable impact is the foundation of our business. As we support these toughness, we remain to bring even more social understanding and also worth to our music-empowered charity programs while sustaining songs and also its development.”

Current Functional Emphasizes

  • TME’s on the internet songs and also social enjoyment solutions essential running metrics[2]

3Q22

3Q21

YoY %

Mobile MAU – on the internet songs (million)

587

636

( 7.7 %)

Mobile MAU – social enjoyment (million)

155

205

( 24.4 %)

Paying customers – on the internet songs (million)

85.3

71.2

19.8 %

Paying customers – social enjoyment (million)

7.4

10.0

( 26.0 %)

Month-to-month ARPPU – on the internet songs (RMB)

8.8

8.9

( 1.1 %)

Month-to-month ARPPU – social enjoyment (RMB)

177.3

163.9

8.2 %

    • The year-over-year decrease in on the internet songs mobile MAUs was largely as a result of spin of our laid-back customers in the middle of competitors from pan-entertainment systems, along with price optimization procedures to concentrate on increasing money making effectiveness as a system of range. Nonetheless, QQ Songs DAUs remained to enhance year-over-year, showing healthy and balanced individual interaction with our front runner items. Significantly, on the internet songs paying customers, a mate standing for premium customers, remained to expand at a durable speed and also drove paying proportion to a brand-new document, while ARPPU additionally maintained enhancing sequentially, driven by our broadening material offerings and also item improvements, along with expanded sales networks and also regulated promos. Because of this, our membership income remained to supply healthy and balanced year-over-year and also quarter-over-quarter development.
    • Social enjoyment solutions MAUs and also paying customers decreased year-over-year as a result of macro headwinds. We will certainly remain to enhance our competition with continuous item developments and also brand-new campaigns in social enjoyment, such as audio online streaming, worldwide development and also digital interactive item offerings.
  • Our web content approach remained to reinforce the range, high quality and also allure of our material offerings.
    • Broad web content collaborations with leading tags and also musicians, both locally and also worldwide, to enhance the variety of partnerships:
      • Joined YG Home Entertainment, Faye Wong, Roy Wang, Lay Zhang and also others to offer our customers with advantages in the 30-day running start duration complying with the launch of their brand-new tracks.
      • Jay Chou’s electronic cd “Greatest Functions of Art” taped sales of near to 7 million duplicates by the end of the 3rd quarter.
      • Accepted specialist organizations and also market companions in the video gaming, classic and also digital songs verticals to improve our credibility as the best location.
    • Initial web content manufacturing capacities to expand our large and also cross-generational songs collection:
      • Increased the impact of our initial jobs by bringing them to both residential and also abroad target markets. Remarkable instances in the 3rd quarter included our artist Akini Jing’s cd Countless Goodbye, which was identified as the month-to-month choice by Pitchfork, an around the world authority in songs testimonials, along with a variety of initial songs that went viral on the web and also each brought in over 100 million streams, such as Heard from You by Dongran Yu.
      • Presented a trademarked voice synthesis innovation, Lingyin Engine, to speed up initial web content manufacturing with technical developments. Created the artificial voices in memory of epic musicians such as Teresa Teng and also Anita Mui, and also developed an AI vocalist schedule with the voices of trending celebrities such as Yang Chaoyue, to name a few. Since completion of the 3rd quarter, we have actually introduced over 1,000 tracks with AI artificial voices.
    • Tencent Artist System, an overall solution system that assists indie artists display their skill and also enthusiasm for songs:
      • Equipped over 350,000 independent artists in the 3rd quarter to assist produce, disperse and also monetize their songs web content.
      • Scaled up online and also offline assistance throughout the 3rd quarter to present brand-new attributes such as “TME Artists’ Albums” which assists artists launch electronic cds and also brings them revenue produced by their cds sales. Likewise suggested a varied team of our artists to different programs and also occasions organized by TME and also funded by Sprite, SAIC Audi and also JD, to name a few, to offer solid promo and also business sources, and also in the meanwhile assistance marketers increase the worth and also impact of their brand names.
    • TME Live sets on- and also off-line songs enjoyment to bring followers different A-list efficiencies:
      • Held 32 online and also offline efficiencies in the 3rd quarter by different A-list celebrities, consisting of Han Hong and also Wakin Chau
      • Originated TME Live Minute’s “Elect Your Repetition,” an interactive attribute allowing followers to elect on a show’s closing tune and also involve even more deeply with efficiencies.
  • Our system approach produces an immersive, bonding experience for our customers, highlighted by our 4 columns of enjoyment: pay attention, enjoy, sing and also play.
    • Ended up being the very first songs system locally to provide brand-new attributes such as Dolby Surround Audio, Adaptive Audio Modification, iphone 16 lock-screen widgets and also even more to offer an active interface and also a tech-oriented, specialist paying attention experience for our customers.
    • Updated the individualized playlist feature and also clever referral attribute to additional streamline the paying attention procedure and also boost songs exploration effectiveness. As an outcome of these improvements, QQ Songs and also Kugou Songs’s referral streaming quantity and also time invested per individual both signed up year-over-year rises.
    • Held an online 3D live program in TMELAND partnering with Pepsi and also its digital idolizer team TEAM PEPSI, with over 4 million followers signing up with.
    • Debuted brand-new interactive attributes such as Songs Area, a 2D digital songs neighborhood, and also Tan Go, a songs enjoyment attribute, to bring customers much more enjoyable methods to connect with songs, musicians and also each various other.
  • Long-form Sound: We introduced Shengbo, placing a one-stop sound production aide in our podcasters’ pockets. We additionally boosted our Text to Audio (TTS) innovation to help with and also supplement podcast web content manufacturing.
  • Social obligation is an additional basic component of our songs ecological community. On 99 Providing Day, we joined musicians consisting of Mao Buyi and also Tencent Charity to release “Listen to the Light of Songs,” a kind cd, and also “Stunned by Songs,” a charity performance, to increase understanding and also funds for environmental management, along with young and also senior teams in backwoods.

[1] Non-IFRS web earnings and also Non-IFRS web earnings attributable to equity owners of the Firm was come to after omitting the mixed impact of amortization of abstract properties and also various other properties occurring from procurements, share-based payment expenditures, web losses/gains from financial investments and also revenue tax obligation results.

[2] For the interpretations of the mentioned essential operating metrics, please describe the intro area in the Firm’s 2021 20-F submitted on April 26, 2022. The month-to-month ARPPU of social enjoyment solutions is determined based upon earnings from social enjoyment and also others, consisting of marketing solutions supplied on our social enjoyment systems. On-line songs mobile MAUs for a provided month describes the amount of mobile MAUs of our songs items, consisting of QQ Songs, Kugou Songs and also Kuwo Songs, for that month; replicate accessibility to various solutions by the exact same gadget is not removed from the estimation.

3rd Quarter 2022 Financial Outcomes

Earnings

Overall earnings for the 3rd quarter of 2022 reduced by RMB440 million, or 5.6%, to RMB7.37 billion ( US$ 1.04 billion) from RMB7.81 billion in the exact same duration of 2021.

  • Earnings from on the internet songs solutions for the 3rd quarter of 2022 boosted by 18.8% to RMB3.43 billion ( US$ 482 million) from RMB2.89 billion in the exact same duration of 2021. The boost was driven by solid development in songs membership earnings, supplemented by development in earnings from sales of electronic cds and also marketing solutions, partly balanced out by a decline in sublicensing earnings. Earnings from songs memberships were RMB2.25 billion ( US$ 316 million), standing for development of 18.3% contrasted to RMB1.90 billion in the exact same duration of 2021, largely as a result of a boost in the variety of paying customers by 19.8%. ARPPU continued to be secure at RMB8.8 this quarter contrasted to RMB8.9 in the 3rd quarter of 2021 and also boosted by 3.5% sequentially, since we concentrated extra intently on premium development of our membership income while keeping a healthy and balanced ARPPU this year. The boost in earnings from sales of electronic cds was mostly as a result of the launch of electronic cds throughout the duration. Furthermore, earnings from marketing boosted on both a year-over-year and also consecutive basis as we started to recuperate reasonably from the effect of COVID-19 and also supplied even more marketing layouts to our clients. Sublicensing earnings reduced on a year-over-year basis as a result of restructuring of contracts with particular songs tags.
  • Earnings from social enjoyment solutions and also others for the 3rd quarter of 2022 reduced by 20.0% to RMB3.94 billion ( US$ 553 million) from RMB4.92 billion in the exact same duration of 2021. On a year-over-year basis, ARPPU boosted by 8.2% in the 3rd quarter of 2022, while paying customers of social enjoyment solutions reduced by 26.0%. The decline was mostly as a result of the effect of the advancing macro setting and also boosted competitors from various other systems.

Expense of Earnings

Expense of earnings for the 3rd quarter of 2022 reduced by 9.7% to RMB4.96 billion ( US$ 698 million) from RMB5.50 billion in the exact same duration of 2021. The decreased earnings from social enjoyment solutions caused the decline in income sharing charges, which was the key factor for the general decline in price of earnings on a year-over-year basis.

Gross Revenue and also Gross Margin

Gross earnings for the 3rd quarter of 2022 boosted by 4.1% to RMB2.40 billion ( US$ 338 million) from RMB2.31 billion in the exact same duration of 2021. Gross margin for the 3rd quarter of 2022 boosted by 3.0% to 32.6% from 29.6% in the exact same duration of 2021. This boost in gross margin was largely as a result of our efficient control of web content prices consisting of income sharing charges for our online streaming service, along with boosted functional price effectiveness and also the boost in earnings from marketing solutions and also sales of electronic cds.

Business Expenses through

Overall overhead for the 3rd quarter of 2022 reduced by 12.3% to RMB1.44 billion ( US$ 202 million) from RMB1.64 billion in the exact same duration of 2021. Overhead as a portion of complete earnings reduced by 1.5% to 19.5% in the 3rd quarter of 2022 from 21.0% in the exact same duration of 2021. After omitting the effect from the expenditures connected to our additional listing, overhead as a portion of complete earnings would certainly have reduced by 2.1% year-over-year.

  • Offering and also advertising expenditures were RMB245 million ( US$ 34 million), standing for a decline of 58.3% year-over-year from RMB587 million in the exact same duration of 2021. This decline was largely as a result of efficient control over advertising expenditures and also optimization of the general promo framework to enhance running effectiveness. Our marketing and also advertising expenditures constantly reduced throughout this year as we decreased the advertising costs on individual procurement and also continued to be extra concentrated on paying individual development.
  • General and also management expenditures were RMB1.19 billion ( US$ 168 million), standing for a boost of 13.4% year-over-year from RMB1.05 billion in the exact same duration of 2021. After omitting the effect from the expenditures connected to our additional listing, basic and also management expenditures would certainly have boosted by 9.2% year-over-year. The boost was mostly as a result of boosted financial investment in r & d.

Operating Revenue through

Operating earnings for the 3rd quarter of 2022 boosted by 37.2% to RMB1.26 billion ( US$ 177 million) from RMB919 million in the exact same duration of 2021, arising from our boosted gross earnings and also efficient control over functional effectiveness.

Revenue Tax Obligation Expenditures

Efficient tax obligation price in the 3rd quarter of 2022 was 12.2%, contrasted to 11.5% in the exact same duration of 2021. The boost in efficient tax obligation price was mostly since a few of our entities were qualified to various tax obligation advantages in 2021 and also 2022.

Web Revenue and also Non-IFRS Web Revenue through

Web earnings attributable to equity owners of the Firm for the 3rd quarter of 2022 boosted by 43.4% to RMB1.06 billion ( US$ 149 million) from RMB740 million in the exact same duration of 2021. Non-IFRS web earnings attributable to equity owners of the Firm for the 3rd quarter of 2022 boosted by 35.9% to RMB1.38 billion ( US$ 194 million) from RMB1.02 billion in the exact same duration of 2021. Please describe the area in this news release labelled “Non-IFRS Financial Procedure” for information.

Profits per ADS

Fundamental and also watered down revenues per American Depositary Shares (” ADS”) were RMB0.67 ( US$ 0.09) and also RMB0.66( US$ 0.09), specifically, for the 3rd quarter of 2022. Non-IFRS standard and also watered down revenues per ADS were RMB0.87 ( US$ 0.12) and also RMB0.86 ( US$ 0.12), specifically, for the 3rd quarter of 2022. Throughout the 3rd quarter of 2022, the Firm carried weight standards of 1.59 billion standard and also 1.60 billion thinned down ADSs superior, specifically. Each ADS stands for 2 of the Firm’s Course An average shares.

Cash Money, Cash Money Matchings, Term Deposits and also Short-term Investments

Since September 30, 2022, the mixed equilibrium of the Firm’s cash money, cash money matchings, term down payments and also temporary financial investments totaled up to RMB25.45 billion ( US$ 3.58 billion), contrasted to RMB25.80 billion since June 30, 2022 Such mixed equilibrium was additionally impacted by the adjustment in the currency exchange rate of RMB to USD at various annual report days. The currency exchange rate was 7.1135 to 1 on September 30, 2022

Share Repurchase Program

According To the US$ 1 billion 2021 Share Repurchase Program revealed on March 28, 2021, since September 30, 2022, we had actually redeemed roughly 114.0 million ADSs from the competitive market with cash money for an overall factor to consider of roughly US$ 860 million

Teleconference Info

TME’s administration will certainly hold a teleconference at 7:00 P.M. on Tuesday, November 15, 2022 ( Hong Kong time) ( 6:00 A.M. on November 15, 2022, United State Eastern Time) to talk about the economic outcome for the 3 months finished September 30, 2022 The dial-in information of the teleconference are as adheres to:

USA Toll Free:

+1 -888 -317 -6003

International:

+1 -412 -317 -6061

Landmass China Toll Free:

400-120-6115

Hong Kong, China Toll Free:

800-963-976

Gain Access To Code:

2420087

The replay will certainly come with November 22, 2022, by calling the complying with numbers:

USA Toll Free:

+1 -877 -344 -7529

International:

+1 -412 -317 -0088

Gain Access To Code:

4004801

In addition, an online and also archived webcast of the teleconference will certainly be offered on the Firm’s financier relationships site at https://ir.tencentmusic.com/.

Currency Exchange Rate

This statement consists of translations of particular RMB quantities right into united state bucks (” USD”) at defined prices only for the benefit of the visitor. Unless or else mentioned, all translations from RMB to USD were made at the price of RMB71135 to US$ 1.00, the noontime acquiring price basically on September 30, 2022, in the H. 10 analytical launch of the Federal Book Board. The Firm makes no depiction that the RMB or USD quantities referred might be exchanged USD or RMB, probably, at any type of specific price or whatsoever. For logical discussion, all percents are determined utilizing the numbers offered in the economic declarations had in this revenues launch.

Non-IFRS Financial Procedure

The Firm makes use of non-IFRS web earnings through, which is a non-IFRS economic action, in examining its operating outcomes and also for economic and also functional decision-making objectives. TME thinks that non-IFRS web earnings assists determine underlying patterns in the Firm’s service that might or else be misshaped by the impact of particular expenditures that the Firm consists of in its earnings through. TME thinks that non-IFRS web earnings through gives valuable info concerning its outcomes of procedures, improves the general understanding of its previous efficiency and also future potential customers and also enables better exposure relative to essential metrics made use of by its administration in its economic and also functional decision-making.

Non-IFRS web earnings through ought to not be thought about alone or understood as a choice to operating earnings, web earnings through or any type of various other action of efficiency or as an indication of its operating efficiency. Financiers are motivated to examine non-IFRS web earnings through and also the settlement to its most straight equivalent IFRS action. Non-IFRS web earnings through offered right here might not approach in a similar way labelled procedures offered by various other business. Various other business might compute in a similar way labelled procedures in a different way, restricting their effectiveness as relative procedures to the Firm’s information. TME motivates capitalists and also others to examine its economic info in its whole and also not rely upon a solitary economic action.

Non-IFRS web earnings through stands for earnings through omitting amortization of abstract and also various other properties occurring from procurements, share-based payment expenditures, web losses/gains from financial investments and also revenue tax obligation results.

Please see the “Unaudited Non-IFRS Financial Procedure” consisted of in this news release for a complete settlement of Non-IFRS web earnings through to its web earnings through.

Regarding Tencent Songs Home Entertainment

Tencent Songs Home Entertainment Team (NYSE: TME and also HKEX: 1698) is the leading on the internet songs and also sound enjoyment system in China, running the nation’s extremely prominent and also ingenious songs applications: QQ Songs, Kugou Songs, Kuwo Songs and also WeSing. TME’s objective is to make use of innovation to boost the function of songs in individuals’s lives by allowing them to produce, delight in, share and also connect with songs. TME’s system makes up on the internet songs, online sound, on the internet karaoke, music-centric online streaming and also on the internet performance solutions, allowing songs followers to find, pay attention, sing, enjoy, execute and also interact socially around songs. For additional information, please see ir.tencentmusic.com.

Safe Harbor Declaration

This news release consists of positive declarations. These declarations are made under the “secure harbor” stipulations of the united state Personal Stocks Lawsuits Reform Act of 1995. Declarations that are not historic realities, consisting of declarations concerning the Firm’s ideas and also assumptions, are positive declarations. Progressive declarations entail integral threats and also unpredictabilities, and also a variety of variables might trigger real outcomes to vary materially from those had in any type of positive declaration. Sometimes, positive declarations can be recognized by words or expressions such as “may,” “will,” “anticipate,” “prepare for,” “target,” “purpose,” “quote,” “mean,” “strategy,” “think,” “possible,” “proceed,” “is/are most likely to” or various other comparable expressions. More info relating to these and also various other threats, unpredictabilities or variables is consisted of in the Firm’s filings with the SEC and also the HKEX. All info supplied in this news release is since the day of this news release, and also the Firm does not embark on any type of task to upgrade such info, other than as needed under appropriate legislation.

Financier Relations Call

Tencent Songs Home Entertainment Team
[email protected]
+86 (755) 8601-3388 ext. 8184 15

TENCENT SONGS HOME ENTERTAINMENT TEAM

CONSOLIDATED EARNINGS DECLARATION


















3 Months Finished September 30


9 Months Finished September 30




2021


2022


2021


2022




RMB


RMB


US$


RMB


RMB


US$




Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited




( in millions, other than per share information)


( in millions, other than per share information)

Earnings














On-line songs solutions



2,888


3,430


482


8,587


8,924


1,255

Social enjoyment solutions and also others



4,917


3,935


553


15,050


11,990


1,686




7,805


7,365


1,035


23,637


20,914


2,940

Expense of earnings



( 5,496)


( 4,962)


( 698 )


( 16,425)


( 14,588)


( 2,051)

Gross earnings



2,309


2,403


338


7,212


6,326


889















Offering and also advertising expenditures



( 587 )


( 245 )


( 34 )


( 1,928)


( 878 )


( 123 )

General and also management expenditures



( 1,051)


( 1,192)


( 168 )


( 2,942)


( 3,318)


( 466 )

Overall overhead



( 1,638)


( 1,437)


( 202 )


( 4,870)


( 4,196)


( 590 )

Rate of interest revenue



131


186


26


408


487


68

Various other gains, internet



117


109


15


368


438


62

Operating earnings



919


1,261


177


3,118


3,055


429















Share of web earnings/( loss) of financial investments represented
utilizing equity technique



1


8


1


( 48 )


22


3

Money price



( 30 )


( 24 )


( 3 )


( 90 )


( 77 )


( 11 )

Revenue prior to revenue tax obligation



890


1,245


175


2,980


3,000


422















Revenue tax obligation cost



( 102 )


( 152 )


( 21 )


( 342 )


( 366 )


( 51 )

Revenue through



788


1,093


154


2,638


2,634


370















Attributable to:














Equity owners of the Firm



740


1,061


149


2,493


2,526


355

Non-controlling passions



48


32


4


145


108


15















Profits per share for Course An as well as Course
B regular shares














Fundamental



0.22


0.33


0.05


0.75


0.78


0.11

Watered Down



0.22


0.33


0.05


0.74


0.78


0.11















Profits per ADS (2 Course A shares
equivalent to 1 ADS)














Fundamental



0.45


0.67


0.09


1.50


1.57


0.22

Watered Down



0.44


0.66


0.09


1.47


1.55


0.22















Shares made use of in revenues per Course An as well as
Course B regular share calculation:














Fundamental



3,305,669,441


3,176,110,236


3,176,110,236


3,334,040,031


3,224,870,392


3,224,870,392

Watered Down



3,337,499,968


3,206,799,580


3,206,799,580


3,382,627,682


3,255,991,564


3,255,991,564















ADS made use of in revenues per ADS
calculation














Fundamental



1,652,834,720


1,588,055,118


1,588,055,118


1,667,020,016


1,612,435,196


1,612,435,196

Watered Down



1,668,749,984


1,603,399,790


1,603,399,790


1,691,313,841


1,627,995,782


1,627,995,782

TENCENT SONGS HOME ENTERTAINMENT TEAM

UNAUDITED NON-IFRS FINANCIAL PROCEDURE


















3 Months Finished September 30


9 Months Finished September 30




2021


2022


2021


2022




RMB


RMB


US$


RMB


RMB


US$




( in millions, other than per share information)


( in millions, other than per share information)

Revenue through



788


1,093


154


2,638


2,634


370

Changes:














Amortization of abstract and also various other properties occurring
from procurements *



127


130


18


357


372


52

Share-based payment



202


226


32


551


656


92

( Gains)/ Losses from financial investments **



( 21 )




16


( 141 )


( 20 )

Revenue tax obligation results ***



( 33 )


( 38 )


( 5 )


( 103 )


( 106 )


( 15 )

Non-IFRS Web Revenue



1,063


1,411


198


3,459


3,415


480















Attributable to:














Equity owners of the Firm



1,015


1,379


194


3,314


3,307


465

Non-controlling passions



48


32


4


145


108


15















Profits per share for Course An as well as Course B
regular shares














Fundamental



0.31


0.43


0.06


0.99


1.03


0.14

Watered Down



0.30


0.43


0.06


0.98


1.02


0.14















Profits per ADS (2 Course A shares equivalent to 1
ADS)














Fundamental



0.61


0.87


0.12


1.99


2.05


0.29

Watered Down



0.61


0.86


0.12


1.96


2.03


0.29















Shares made use of in revenues per Course An as well as
Course B regular share calculation:














Fundamental



3,305,669,441


3,176,110,236


3,176,110,236


3,334,040,031


3,224,870,392


3,224,870,392

Watered Down



3,337,499,968


3,206,799,580


3,206,799,580


3,382,627,682


3,255,991,564


3,255,991,564















ADS made use of in revenues per ADS calculation














Fundamental



1,652,834,720


1,588,055,118


1,588,055,118


1,667,020,016


1,612,435,196


1,612,435,196

Watered Down



1,668,749,984


1,603,399,790


1,603,399,790


1,691,313,841


1,627,995,782


1,627,995,782

























































* Stands for the amortization of recognizable properties, consisting of abstract properties and also early repayments for songs web content, arising from procurements

** Consisting of the web losses/gains on regarded disposals/disposals of financial investments, reasonable worth modifications occurring from financial investments, disability arrangement of financial investments and also various other expenditures in regard to equity purchases of financial investments

*** Stands for the revenue tax obligation results of Non-IFRS modifications

TENCENT SONGS HOME ENTERTAINMENT TEAM

COMBINED ANNUAL REPORT










As at December 31, 2021


As at September 30, 2022



RMB


RMB


US$



Audited


Unaudited


Unaudited



( in millions)

POSSESSIONS







Non-current properties







Home, plant and also tools


243


289


41

Land usage legal rights


1,495


2,499


351

Right-of-use properties


283


435


61

Abstract properties


2,829


2,491


350

A Good Reputation


19,121


19,493


2,740

Investments represented utilizing equity technique


3,599


4,386


617

Economic properties at reasonable worth with various other detailed
revenue

7,302


3,172


446

Various other financial investments


199


299


42

Early repayments, down payments and also various other properties


743


659


93

Deferred tax obligation properties


346


392


55

Term down payments


4,303


6,570


924



40,463


40,685


5,719








Existing properties







Stocks


24


20


3

Accounts receivable


3,610


2,916


410

Early repayments, down payments and also various other properties


2,731


4,221


593

Various other financial investments


37


37


5

Temporary financial investments


1,029



Term down payments


12,769


10,294


1,447

Money and also cash money matchings


6,591


8,582


1,206



26,791


26,070


3,665








Overall properties


67,254


66,755


9,384















EQUITY







Equity attributable to equity owners of the
Firm







Share funding


2


2


0

Extra paid-in funding


36,238


36,493


5,130

Shares held for share honor plans


( 183 )


( 200 )


( 28 )

Treasury shares


( 3,660)


( 5,445)


( 765 )

Various other books


3,726


5,404


760

Preserved revenues


14,194


10,970


1,542



50,317


47,224


6,639

Non-controlling passions


738


1,070


150








Overall equity


51,055


48,294


6,789








OBLIGATIONS







Non-current responsibilities







Notes payables


5,062


5,641


793

Accounts payable


93



Various other payables and also various other responsibilities


32


6


1

Deferred tax obligation responsibilities


271


219


31

Lease responsibilities


205


349


49

Deferred income


86


108


15



5,749


6,323


889








Existing responsibilities







Accounts payable


4,329


4,838


680

Various other payables and also various other responsibilities


3,832


4,490


631

Existing tax obligation responsibilities


363


476


67

Lease responsibilities


92


99


14

Deferred income


1,834


2,235


314



10,450


12,138


1,706








Overall responsibilities


16,199


18,461


2,595








Overall equity and also responsibilities


67,254


66,755


9,384

TENCENT SONGS HOME ENTERTAINMENT TEAM

COMPRESSED COMBINED DECLARATIONS OF CAPITAL
















3 Months Finished September 30


9 Months Finished September 30



2021


2022




2021


2022



RMB


RMB


US$


RMB


RMB


US$



Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited



( in millions)


( in millions)














Web cash money supplied by running tasks


1,595


1,252


176


4,417


4,987


701

Web cash money made use of in spending tasks


( 1,692)


( 1,243)


( 175 )


( 6,995)


( 338 )


( 48 )

Web cash money made use of in funding tasks


( 1,651)


( 1,668)


( 234 )


( 3,424)


( 3,036)


( 427 )

Internet (decline)/ boost in cash money and also cash money matchings


( 1,748)


( 1,659)


( 233 )


( 6,002)


1,613


227

Money and also cash money matchings at start of the duration


6,822


10,044


1,412


11,128


6,591


927

Exchange distinctions on cash money and also cash money matchings


4


197


28


( 48 )


378


53

Money and also cash money matchings at end of the duration


5,078


8,582


1,206


5,078


8,582


1,206

RESOURCE Tencent Songs Home Entertainment Team