Good evening, good morning, and welcome to Tencent Music Entertainment Group's first quarter 2026 earnings conference call. I'm Millicent Tu, Head of IR. We announced our quarterly financial results earlier today before the U.S. market opened. The earnings release is now available on our IR website and via news wire services. During today's call, you'll hear from Mr. Kar Shun Pang, our Executive Chairman, and Mr. Ross Liang, our CEO, who will share an overview of our company strategies and business updates. Ms. Shirley Hu, our CFO, will discuss our financial results before we open the call for questions. Before we continue, I refer you to the safe harbor statement in our earnings release, which applies to today's call as we make forward-looking statements.
Please note that we'll discuss non-IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under IFRS in our earnings release and filings with the SEC. All participants are muted at this time. After management's remarks, there'll be a Q&A session, and please be advised that today's call is being recorded. With that, I will now turn the call over to Cussion, Executive Chairman of TME Cussion , please.
Thank you, Millicent. Hello, everyone, and thank you for joining our call today. Despite an increasingly competitive landscape in the music streaming industry, we delivered a steady performance overall this quarter. Our growth is increasingly driven by diversified monetization across the music value chain, with the offline concert-related business achieving another quarter of triple-digit year-over-year growth. We will continue to accelerate the development of our multidimensional commercialization model, which is deeply rooted in our commitment to cultivating a vibrant and legitimate music ecosystem. While AI is rapidly expanding the supply of content, it is also introducing significant market noise and new industry challenges. The proliferation of unauthorized AI-generated content not only creates headwinds for our music subscription growth, but also undermines creators' rights and dilutes the long-term value of the music ecosystem as a whole.
In response, we are working closely with creators, rights holders, and regulators to lead and champion robust copyright protection efforts. While the nature of these challenges is unique to the AI era, we have successfully navigated major copyright and IP transitions before and have consistently been at the forefront of those efforts. We remain confident in our ability to adapt, lead by example, and help shape the future framework for intellectual property protection in the age of AI. This commitment has further sharpened our focus on what truly drives long-term value and sustainable growth. Today, we are now convinced than ever that original human creativity and premium music IPs are the ultimate differentiators. That's why we are evolving beyond traditional streaming services into an integrated music ecosystem that further unlocks the value of every piece of IP. This holistic approach is designed to deepen engagement and expand user wallet share.
Against this backdrop, we have further optimized our catalog, ensuring that our licensed and proprietary content offers valuable emotional responses, resonate that users crave. Let me share two examples. First, we further enhanced our classic music catalog, capitalizing on the enduring demand and extended life cycles of timeless hits. We recently renewed contracts with labels, including JVR Music, Linfair Records, and Mok-A-Bye Baby Music Limited, securing continued access to iconic catalogs from artists such as Jay Chou, Zhou Jie Lun, Karen Mok, Mo Wen Wei, Harlem Yu Cheng Qing, and Angela Zhang Shao Han, further reinforcing our leadership in premium content copyrights. We also deepened our strategic partnership with TF Entertainment, providing users with a 30-day head start benefit for upcoming releases and exploring collaboration across physical products, live performances, and other IP-related opportunities.
The streaming share of our in-house new releases has seen a steady rise, reflecting our ongoing efforts to enhance production capabilities. A notable example is our collaboration with Sony Pictures on the Chinese theme song, The Star Readers, for the scientific blockbuster, Project Hail Mary. Performed by Zhou Shen, the song granted strong traction upon release, quickly topping multiple charts across our platforms. Across our business, AI has become a key enabler, accelerating time to market, improving production efficiencies, and enhancing user experience. Importantly, it complements, not replaces, human creativity, and further reinforce the scarcity and value of premium IPs. Let me walk you through how we are actively embracing AI to further enhance our content ecosystem and, in turn, unlock additional value from legacy IPs. We provide creators with tools to reshape every stage of the creative process.
For instance, our one-stop AI music production tool, Venus, stimulates the full cycle songwriting process of professional musicians, from lyrics, compositions, and arrangement to vocal performance and mixing. This empowers creators to produce high-quality work more efficiently and at lower cost. Second, as we bring more legitimate AI-generated music onto our platform, we are pleased to see that high-quality AI works can, in turn, revitalize classic IPs and endure them to younger generations. Some AI covers of classic hits are often among the most popular tracks. By re-imagining iconic songs with innovative styles and vocals, these re-interpretations spark renewed interest, driving listeners back to the original versions and amplifying the visibility and commercial value of legacy IPs. As more premium IPs thrive on our platform, they serve as a powerful engine for our broader communicationization efforts.
By building holistic pan IP-related music experiences, we continue to lead industry consumption and grow at scale. Whether through immersive live performances or innovative fan-based economy, we are elevating music's influence while deepening water share. Specifically, first, our highly loyal user ecosystem continues to attract leading artists and IPs seeking deeper collaboration. By strengthening strategic partnerships, we extend IP value chains through integrated virtual and physical offerings. A key example is our collaboration with Jay Chou on his digital album, Children of the Sun, where we launched the package, the offerings combining the album, SVIP memberships, and physical collectibles. Supported by a nationwide offline campaign across 45 cities, the release achieved a strong viral traction, topped the major charts, surpassed CNY 1 billion in sales, and drove meaningful SVIP conversions.
We also deepened the partnership with leading artists, including Kun, Cai Xukun, and Roy Wang Yuan, whose recent releases delivered a strong fan engagement and commercial performances. Second, we also continue to strengthen cross-cultural reach through different offline partnership with leading domestic and international labels and artists. This quarter, we delivered multiple flagship concerts, which drawing over 10,000 attendees, maintaining a strong execution standard in live performances. Notably, BABYMONSTER's concert in Taiwan, China, and NCT WISH concerts in Hong Kong, China attracted both core fans and broader audience, expanding their reach. Third, we are cultivating our premier artist rosters to amplify the global footprint of Chinese music. This is exemplified by Silence Wang Sulong's debut world tour across Asia and North America, and Gai Zhou Yan's first large-scale show in Singapore.
Domestically, concerts by Will Pan Weibo, Tia, Yuan Yawei, Angela Zhang Shaohan, Jane Zhang Liangying, and Zhang Yuan further deepened fans engagement. Before concluding, I would like to share our ESG progress. In April, we published over our 2025 ESG report. Over the past years, we stepped up in created empowerment, product inclusivity, and value chain sustainability. This efforts reinforce the long-term value and resilience of our ecosystem, as reflected in the ESG rating upgrades and external recognition. In closing, we are encouraged by the progress we have made and the challenges we are elevating the strategic priority and investment in copyright governance, taking a more resolute stance to safeguard the long-term health of the music industry. We remain committed to advancing the broader creative economy, unlocking new opportunities, and driving enduring long-term value.
Now, I would like to hand the call over to Ross for an update on our overall platform development. Ross, please go ahead. Thank you.
Thank you, Kar shun. Hello, everyone. In an increasingly competitive landscape, we are building a more resonant platform powered by our content and the platform dual engine, driving user differentiation, engagement, and the lifetime value. As we strengthen our competitive edge and further differentiate our offerings, we are transitioning to a membership-based model that goes beyond content subscriptions to deliver more immersive music experiences. I will share more details shortly. For today's call, I would like to primarily focus on two areas: user growth and monetization efficiency improvement resulting from better services. On the user front, maintaining a healthy top-of-funnel remains our foundation. Let me share some updates.
First, we are excited to further deepen our integration with the WeChat ecosystem to broaden reach and streamline user conversion. By embedding a pathway basing video accounts, we facilitated a seamless transition from short video music discovery to full track playback on our platform. This also elevates musician's exposure, helping them convert casual short video viewers into a loyal fan base on our platform. Second, for Kugou, where competitive pressure is a bit more acute. We lowered barriers to entry through more freemium and ad memberships. Third, we leveraged AI to drive engagement with improved recommendation system, efficient discovery enabled by AI agents, and easier playlist creation. Growth in music assets boosted engagement. We also saw exponential growth in both AI-driven messenger and the playback DAU.
At the same time, personalized features such as theme avatars, player innovations, and interactive tools led to a deeper sense of belonging on our platform. Turning to how we are unlocking greater IP value and increasing user lifetime value, we continue to execute existing tiered plans. As I mentioned earlier, we launched a new initiative to transition to a membership-based concept with engaged content and the right offerings. Although still in its early stages, we see stronger long-term potential in IP-driven offerings through enhanced benefits and integrated rewards. First, as VIP membership continue to see stronger adoption and retention thanks to our refined operations and innovative benefits. For example, we appointed JC-T, Tan Jianci, as our first cross-platform VIP family brand ambassador. This strategic partnership significantly enhanced the per se value and the public awareness of our premium offerings.
In addition, to further differentiate our VIP premium offerings, we continue to expand fan-based benefits and audio privileges. On the content front, we introduced China limited edition digital albums combined with physical collectible for leading K-pop artists such as BLACKPINK, EXO, and IVE. On the platform and the product front, we launched the TME Connect, enabling high fidelity audio transmission across multiple devices. Kugou Music launched the live house sound effects, and the QQ Music further deepened the collaboration with Dolby to become the first music platform in China to support Dolby Atmos audio format. We also extended this immersive experience to Dolby House, an offline audio experience space for artists like Charlie Puth, Silence Wang Sulong, and BLACKPINK. Second, we pioneered more IP-centric memberships to capture diverse user demands.
A key milestone this quarter was the launch of our inaugural fan club, Romance Universe, with Silence Wang Sulong, offering priority ticket access, unique content, and artist-centric perks that resonates well with fans. At the same time, we continue to expand artist reach on Bubble, welcomed Su Ruiqi as Bubble's first Sony Music artist, and enhanced product features such as in-chat search functionality, which further strengthened user engagement and retention. Last but not least, we are unlocking incremental growth by scaling IP-driven offline offerings, particularly with artist merchandise. For instance, we served as the sole distributor for TransfOrmProject, TOP [Non-English content]debut physical album and other sold-out merchandise such as Yuqi, Song Yuqi, (G)I-DLE New Year gift box, and the Hu Xia support plus collectibles.
Beyond merchandise, we brought the Idol City of Sense China debut exhibition to life in collaboration with Cube, delivering a multidimensional immersive experience for fans. To conclude, while challenges remain, we are confident in our path forward. We will continue sharpening our competitive edge to strengthen our vibrant platform. One that attract users, deepens engagement, and unlocks new monetization opportunities. With that, I would like to turn the call over to Shirley, our CFO, for a deep dive into our financials.
Thank you, Ross, and greetings, everyone. Let me now turn to our financial results. In the challenging environment, we have delivered steady financial results in the first quarter of 2026, with 7% year-on-year revenue growth. Revenues from music-related services grew 12% year-on-year, driven by solid growth in revenues from membership services and offline performances-related services, supplemented by growth in revenues from advertising services. Revenues from membership services were RMB 4.6 billion, up by 7% year-on-year. In the first quarter of 2026, this quarter, we started to presenting membership services revenues to better reflect the nature of our membership business. Revenues from membership services primarily consist of membership fees paid for membership benefits and privileges within music-related services. Over time, some IP-related benefits, such as artist merchandise and offline performances, have emerged as key drivers of VIP adoption.
Additionally, our newly launched fan club memberships further enriches fan experience and is a great example for enriching integrated product with content in the platform strategy. These collaborations we have built with the strategic artists across music promotion, offline performances, artist-related merchandise, and fan club membership provide more immersive experience for fans and help enrich privileges of our membership programs, building win-win relationships for everyone. Additionally, we delivered a solid year-on-year growth in advertising revenues, driven by growth of ad-supported model and sponsorship advertising. Our increased number of paying users and the churn of casual users created more challenges for our advertising business in the increasingly competitive market. We have taken actions to improve ads exposure, lower the entry barriers, and offer more engaging interactive ads tasks for users. As our engagement growth engine, offline performances-related services have achieved strong results in Q1.
We have positioned our strategic artists, such as Will Pan, Silence Wang, and Gaai, on high-profile stages across domestic and overseas markets, effectively expanding their global influence and further unlocking their long-term commercial value. Also, we have hosted flagship concerts with leading K-pop groups, including BABYMONSTER and NCT WISH. Revenues from social entertainment services and others were CNY 1.4 billion, down by 11% year-on-year. Our gross margin in Q1 2026 was 44.9%, up by 0.8 percentage points year-on-year. The year-on-year increase was primarily due to increase in revenues from membership services and advertising services, along with decreased channel fees. Additionally, we are happy to see cost efficiency improvement for IP-related services. In the long run, we are confident that our gross margin will remain competitive in the industry, although it may fluctuate quarter-over-quarter due to seasonality.
Moving on to operating expenses. They amounted to RMB 1.2 billion, representing 50.3% of our total revenues in Q1 2026, compared with 15.5% in the same period of last year. Selling and marketing expenses were RMB 271 million, up by 36% year-on-year. In response to the competition and to mitigate the impact of user churn, we increased channel spending this quarter. Operationally, we have improved the relevance of target audience while keeping high ROI level in the industry. Going forward, we expect to dynamically adjust our channel spending strategies according to evolving market conditions with ROI requirements. Meanwhile, we expect to increase content promotion and continue to provide high quality content to our users, which concurrently helps grow users on our platform.
General and administrative expenses were RMB 940 million, remained relatively stable compared with the same period of 2025. Our net profit attributable to equity holders was RMB 2.1 billion, compared with RMB 4.3 billion in the same period of 2025, as we have recognized a gain of RMB 2.4 billion on gaining the disposal of an associate in the first quarter of 2025. Our diluted earnings per ADS this quarter were RMB 1.34. This quarter, we started disclosing non-IFRS metrics, adjusted EBITDA, to better reflect our core business operation results. For Q1 2026, our adjusted EBITDA was RMB 2.8 billion, up by 10% year-on-year. Non-GAAP net profit attributable to equity holders of the company was RMB 2.3 billion, up by 7% year-on-year.
As of March 31st of 2026, our combined balance of cash equivalents, term deposits, and short-term investment was RMB 41 billion as compared to RMB 38 billion as of December 31st of 2025.
This combined balance was affected by changes in the exchange rate of RMB to USD at different balance sheet dates. In March 2026, we declared a cash dividend of $0.012 per ordinary share or $0.24 for ADS, for the year ended December 31st, 2025. The cash payment for the dividend of $317 million was made in April 2026. In addition, as part of our long-term commitment to shareholder returns, we plan to complete the two year stock repurchase program that we announced in March 2025 on time. Finally, I'll conclude with some remarks on the outlooks. Looking ahead, while challenges exist, our long-term strategy and commitment to investment in content and technology remain unchanged. We continue to focus on IP development for the long run health of our business and industry.
Through comprehensive collaborations with our strategic partners, we will continue to bring new benefits and privileges to our users and create more innovative products. All these factors enable us to build a richer and more dynamic music and entertainment ecosystem. This concludes our prepared remarks. We are now ready to open the call for questions.
Thank you, Shirley. If you are dialing in by phone, please press five to ask a question and then six to unmute yourself. If you are accessing the call from the Tencent Meeting or VooV Meeting application, please click the Raise Hand button at the bottom left. For the benefits of today's call, please limit yourself to one question, and then if you have more, you can go back to the queue. The first question comes to the line from Lincoln Kong from Goldman Sachs. Lincoln, your line is open.
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Thank you very much for giving this opportunity to ask first question. Just now, first of all, congrats on the good performance in Q1. Just now you said you're going to take a holistic approach and also make full use of whole ecosystem to improve our business. My question, first of all, is about the revenue guidance for the remainder of 2026. Can you give us an outlook on the member and non-membership business and what are key drivers for future growth and especially, as we know that the competition remains intense, especially for the membership businesses. Speaking of the ecosystem, we have noticed that the Ximalaya deal has been approved by the regulator, and can you give us some update on how it can improve our performance in the whole ecosystem.
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Thank you, Lincoln, for your question. First of all, I'll say a few words about the guidance for the remainder of 2026. Despite a challenging environment to achieve a steady performance in Q1, this is attributed to our content plus platform dual-engine strategy, which has helped us build an irreplaceable one-stop music entertainment system. This quarter, our non-membership growth was robust, and our performance-related businesses once again achieved a triple-digit year-on-year growth.
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However, competitive pressure remains significant. Disorderly price competition within the industry, coupled with the rampant issue of pirated content driven by AI, has introduced uncertainties regarding the future revenue growth of traditional streaming services. Moving forward, our operational focus will center on three key areas.
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First of all, strengthen enforcement to prevent AI from becoming an excuse for infringement. In response to industry chaos, we have established a dedicated rights protection mechanism to resolutely safeguard the legal interests of our platform, copyright owners and creators. We welcome tech innovation, but we'll do everything in our power to suppress song washing and other infringing behaviors.
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Expanding top of funnel traffic through deeper integration with the Tencent ecosystem. April this year, we entered into a deep strategic partnership with WeChat Channels. By bridging short form video with music consumption, WeChat Channels users can now jump directly to QQ Music with one single click when they discover music they like. This creates a seamless connection from discovery to legitimate listening, collection and high quality consumption, while providing music creators with greater promotion and exposure opportunities.
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Third, leveraging our flourishing IP ecosystem to solidify the one-stop music consumption mindset. Years of accumulation has provided us not only with a massive library of premium content, but also with the creators behind the hits and the loyal fan base that follow them. To fully unlock the long-term value of this ecosystem, we are broadening our competitive advantage through two dimensions: IP expansion and value deepening.
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First, expanding the IP matrix. While continuously expanding our matrix of partner artists, we're also building our in-house artist system. Currently, our ecosystem features numerous talented artists. Second is expanding the value chains. Establishing an in-house artist system allows us to flexibly integrate the entire industrial chain, from music creation to commercial licensing and brand collaborations, significantly improving IP monetization efficiency. Taking our strategic partnership with Silence Wang as an example, our collaboration has evolved from early digital release rights to organizing concert tours and selling physical merchandise. This quarter, we also co-launched our first fan base membership service, building a dedicated artist-centric fan experience that includes priority entry and unique fan benefits.
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Looking at a year as a whole, we expect some short-term volatility in gross rating from membership and advertising business due to competition, but we will try to be proactive in safeguarding our copyright and try to divert more traffic from the ecosystem. In the long run, we remain optimistic about our comprehensive IP-based monetization and which we expect to maintain steady growth.
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We just received a notice of the approval from SAMR. Along with the Tencent group, TME and Tencent group will follow strictly the requirements of SAMR and honor all the commitments to ensure the transaction will be proceeded accordingly and legally.
Thank you. The next question comes from Alicia Yap from Citigroup. Alicia, please. Alicia, your line is open. Are you with us?
Oh, hello. Yeah. Can you hear me now?
Yes, we can.
[Non English content] So, thanks management for taking my questions.
My question is related to subscription. Can management share some detail about the subscription tiering split? What is the growth status for the advertising subscription user? What are their retention rate? The contribution and the growth potential from those newer subscription like the fan club and Bubble, will this become a meaningful driver for the blended RPU growth in the future? With the pending approval of the Ximalaya transaction, any preliminary plan on the long form audio subscription plan, you know, in the future? Thank you.
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First of all, the positioning of TME this year is to make a one-stop music service platform.
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Kugou Music and QQ Music has been developing for over two decades, and over the years we have been expanding our business based on music.
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For years, we have evolved from doing traditional streaming business to a broader category of business.
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As to your question about user retention for different tiers of users, we have not disclosed this number, but in general it's very stable.
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The design of a multi-tier member system is to meet demands of different kind of users.
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For light users or not those very active users, we're using like free and ad-supported approach to improve retention and tap their commercial value.
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Basic music service is mainly for the users who have a relatively high demand for music and also for those sticky users.
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For those deeper value users, like our products like fan club, Bubbles are for those users who have a more diversified demand.
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I believe in the future, the IP based music subscription, not just a music subscription, but also the audio subscription business, including like book listening or kids audios. This IP based content will create a bigger commercial opportunities and also improve our retention.
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All in all, in the future, we will continue to build IP based one-stop music service platform. With all of this, we can continue to improve user retention and tap more business opportunities.
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This is the very part that provides the most value compared with our competitors.
Thank you. The next question comes from Morgan Stanley. Yang Liu. Yang, your line is open.
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Thank you very much. My question is about member services. We noticed that this quarter, if you look at where year-over-year growth, that's very good. If you look at quarter-over-quarter, it's going down slightly. I'm just wondering what is the reason behind? As far as I can tell, this business doesn't seem to have a very strong seasonality. Probably I guess it's because Q1 is a relatively low season. Apart from the seasonality, is there any other possible reasons like competition, some churns of users or some higher value users are changing their packages from like high packages to some cheaper packages? Could you also give us some like guidance of the future quarter-over-quarter growth for this business?
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Well, first, I want to respond to your question by saying it is not because some SVIP members have chosen some lower or cheaper packages or because of the churning of users. As you can tell that our SVIP member is still growing steadily, so our medium to high value users are still there.
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Well, as you mentioned, this quarter-over-quarter slight decline is mainly because of the competition on the streaming music streaming business, and especially for those free and ad-supported members.
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We've observed some phenomenon in the market that deviate from the business essence. Some other competitors are using AI to quickly fill their music libraries and trying to use aggressive strategy to divert traffic and users into their platform. They're also fighting for those light users.
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Well, we noticed that this is a very important moment for the industry, because such behavior is an exhaustion of the economic value of this industry. Also they are consuming their own business value.
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Amid this environment, as we said in the beginning, we will stay focused on building a one-stop comprehensive music service platform.
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We provide monthly subscription music services on two music platforms, Kugou and QQ Music.
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Users on Kugou platform is more price sensitive and promotion sensitive and well, in face of multiple choices and these kind of users are easily flowing away.
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Well, this will have some impact on the new membership growth on Kugou platform.
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In this context, we have to use the free and ad supported mode to reduce the barrier to entry.
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Kugou Concept Version is also posting a very robust growth in the first half of this year because we're adopting a more flexible pricing and content to retain these light users.
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QQ Music is a relatively more comprehensive platform.
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The overall operational data on QQ Music platform is steady and healthy.
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The overall value of users on this platform is even increasing.
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The recent release of the collaboration between WeChat Channels and QQ Music will further consolidate our competitive edge.
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Lastly, our offline performance or experience or multi-device user experience and scale remain to be our competitive edge, which provide a solid base for us to further tap commercial opportunities.
Thank you. The next question coming from Mizuho, Wei where your line is open.
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Well, thank you very much. We noticed that the GP margin this year actually is growing a little bit quarter-over-quarter. I am just wondering in this case, will you change your overall the whole year guidance on GPM? Because I remember last quarter's call you said that the overall year GP margin will stay flat or even decreasing slightly. We also noticed that the sales and selling expenses actually increased a bit. You said because of the like the deeper collaboration with Tencent ecosystem. I am just wondering this cost ratio, is it one-off or?
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Well, if you look at YOY, in Q1, we've had a very good GP margin, mainly because of the following reasons.
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Number one is in Q1, we see a continuous growth of membership and ADS business, which contributes positively to our GP margin.
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Well, despite the fact that the IP related business is growing very, very rapidly in terms of the overall contribution to the revenue, and especially if you look at our brokering business is growing exponentially and its proportion for overall contribution to the revenue is also going up. We can also tell our offline performance and event business, through that, we have accumulated lots of experience and improve the operational efficiency. Overall, the IP related business impact on the GP margin is close to zero.
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The rigid cost control, also generate very good results on our ROI.
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Well, if you look at quarter-over-quarter, the rise of GP margin is mainly because of the seasonality of IP related business. Because if you look at Q1, the contribution from this business is far lower than Q4 last year.
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It generates some positive impact over GP margin and also offsets the impact of the seasonality reasons of membership and advertising business.
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Well, as to the, our expectation over future revenue growth, we expect to have a GP margin on par with last year in Q2.
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Well, as our IP related business is growing robustly, which will have some structural pressure on our overall GP margin. We will keep optimizing our cost and adopt project basis measures to control costs. Also we'll use our content platform, content plus platform strategy, online plus offline, and also improving, increasing the % of contribution of our own proprietary IP business. With all of these measures, we can maintain a steady profit.
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In the long run, we are very confident to stay at the frontline of our GP margin in the industry.
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Well, as to the question about selling expenses in Q1, it went up by 36% year-on-year. That's mainly because of the intensifying competition in the industry. In face of such intensifying competition, we have to strategically increasing our expenses in user acquisition for our music platforms. We're using different channels like ByteDance to acquire higher value users. We're also using the Star Card of artists to acquire more high quality, high value users.
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In the meantime, we're also promoting our proprietary content, increase the music exposure, and also increase the core competitiveness of our own content. With all of these measures, we try to increase the stickiness of our users.
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With the Tencent ecosystem this year, we will allocate some strategic resources with WeChat Channels, and we will help WeChat Channels establish its own music system.
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We will work with the top tier musicians, singers and studios, and we will do some joint promotions and even releases with them so as to create and improve the overall efficiency of our collaboration.
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We expect that in the future, with the maturization of the WeChat Channels music platform plus our own content contribution, we will achieve a win-win results on two platforms.
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For the whole year, the selling expense will have a reasonable rise and which will be in line with our previous whole year guidance and will in the following quarters, it will not be growing as fast as 36%.
Okay. Thank you, Shirley Hu. Thank you everyone. For the interest of time, I will wrap up today's call. If you have any further questions, please feel free to contact the IR team. This concludes today's call, and thank you again. Look forward to speaking next quarter.
Thank you. Okay, bye bye.
Bye bye.