(Shenzhen, China) On March 22, 2022, China's online music and audio entertainment platform Tencent Music Entertainment Group (hereinafter referred to as "TME" or the "Company") (NYSE: TME) released The unaudited financial report for the fourth quarter and full year ended December 31, 2021.

Liang Zhu, CEO of Tencent Music Entertainment Group, said: "Based on the four pillars of music entertainment: listening, watching, singing and playing, we QQ Music, Kugou Music and Kuwo Music have made exciting progress in platform innovation strategy. They have recently released major version upgrades, including major updates in product concepts, operation optimization, UI design and technological innovation. . As an effective complement to our rich music content, long audio MAU exceeded 150 million in the fourth quarter, a year-on-year increase of 65. In addition, we further strengthened our linkage with the broader Tencent ecosystem and obtained differentiated promotions. Multi-dimensional gains, including channels, more content and tools available for use on the platform, have also injected more vitality into our musician ecosystem. Looking to the future, we will continue to be committed to promoting product innovation and adding value to our platform. Provide users with a richer immersive music entertainment experience ”

Financial and operational highlights

For the full year ended December 31, 2021:

? Total revenue increased by 7.2% year-on-year to RMB 31.24 billion (USD 4.90 billion).

? The company’s net profit was 3.22 billion yuan (US$505 million), and the net profit attributable to the company’s shareholders was 3.03 billion yuan (US$475 million).

? The company’s net profit under non-International Financial Reporting Standards (Non-IFRS) was 4.33 billion yuan (US$680 million), and the net profit attributable to the company’s shareholders under non-International Financial Reporting Standards (Non-IFRS) was 41.5 billion (USD 651 million).

In the three months ended December 31, 2021:

? Total revenue fell 8.7% year-on-year to RMB 7.61 billion (1.19 billion Dollar).

? Online music paying users reached 76.2 million, a year-on-year increase of 36.1, including a month-on-month net increase of 5 million. The payment ratio reached 12.4, which was higher than 9.0 in the same period last year and 11.2 in the third quarter of 2021.

? The company’s net profit was RMB 577 million (USD 91 million), and the net profit attributable to the company’s shareholders was RMB 536 million (USD 84 million).

? The company’s net profit under non-International Financial Reporting Standards (Non-IFRS) was RMB 873 million (USD 137 million), and the net profit attributable to the company’s shareholders under non-International Financial Reporting Standards (Non-IFRS) was RMB 832 million (USD 131 million).

Business Highlights

? Key operating indicators of Tencent Music Entertainment Group’s online music services and social entertainment services*

In the fourth quarter of 2021, thanks to the company's continued expansion of marketing channels, high-quality music content and services, and loyal core user groups, the company's online music paying users continued to achieve strong growth year-on-year and month-on-month growth, reaching a record high of 76.2 million, although the temporary loss of some light users to other pan-entertainment platforms caused the company's online music MAU to drop by 1 year-on-year.

? In the fourth quarter of 2021, affected by intensified industry competition and changes in the macro environment, the company’s social entertainment MAU and paid users declined year-on-year and quarter-on-quarter, but the company will We will continue to carry out product innovation and strengthen the continuous construction of more social entertainment vertical fields such as audio live broadcast, overseas business and virtual interactive content, and continue to enhance the company's competitiveness.

Developed and applied a number of tools and technologies, and successfully unearthed and incubated the popular Chinese style song "Lonely City". Since its release, it has soared to the top of the Chinese style song category, and has In the fourth quarter of 2021, it received nearly 1 billion views.

As of the end of the fourth quarter of 2021, the number of independent musicians on Tencent’s musician platform reached 300,000.

With the multiple promotion and empowerment inside and outside the site, online and offline, Tencent Musician Platform has become an incubator for massive hit songs. Among them, outstanding works include the song "Time Sampling" from musician Fu Yi, which set a first-day streaming record for a song by an independent musician, and Wen Yixin's "Flowers Along the Road", which was featured on many popular TV stations New Year's Eve performance.

? TME live has become an increasingly complete comprehensive performance platform, building a three-dimensional online and offline content layout for the company.

Throughout 2021, TME live *** held 56 performances that combined immersive interaction and high-quality virtual experiences. In the fourth quarter of 2021, TME live has brought together a rich performance lineup including well-known domestic and foreign artists such as Joey Yung, Adele and Chen Linong.

? The company has created trend-setting award ceremonies such as the TMEA Tencent Music Entertainment Festival to reward and record the best and most talented singers and musicians in the industry, as well as the most contemporary Impactful quality work. December 2021. The star-studded third TMEA Tencent Music Entertainment Ceremony was successfully held. It brought together 46 groups of singers and musicians including Jay Chou, Mayday, Liu Ruoying, Cai Xukun, Times Youth League, and Joker Xue, setting a record far exceeding the previous two TMEA A new record of views.

? Based on the platform strategy of "one body, two wings", the company focuses on the four pillars of music entertainment "listening, watching, singing and playing" to create a more immersive experience for users user experience and deepen the commitment to product innovation.

Listen: In the latest version of WeChat, users can directly share songs in the TME music library with WeChat friends. In addition, in the fourth quarter of 2021, the company also launched Lexin, interactive playlists, etc. More innovative features that promote social interaction, and continuous optimization of users’ personalized listening experience through functions such as multi-track adjustment and intelligent recommendations.

Watch: The company provides music users with rich video content to meet their ever-expanding visual needs. In the fourth quarter of 2021, the video content on the QQ Music platform achieved sustained year-on-year growth of over 100 in both the number of unique visitors (UV) and the number of video views (VV).

In addition, with the deepening cooperation with WeChat video accounts, the company continues to enrich the volume of music video content for musicians under the WeChat ecosystem.

Sing: Through a number of innovations, the company continues to improve the user experience of National Karaoke. Among them, the newly launched accompanying singing mode of National Karaoke has won the favor of many online Karaoke KOL users on the platform.

Play: The company launched China's first virtual music carnival TMELAND, launching further exploration of new virtual interactions on the platform, and held the first virtual New Year's Eve music on December 31, 2021 Festival. On that day, a large number of music fans logged into TMELAND to have a virtual carnival with friends and the world’s top 100 DJs. The company's QQ Music and Kugou Music have also released the "M-PETS" and "Music Wizard" functions respectively to provide companionship for music users on the platform. This function has been used by millions of users.

? Long audio: The company is committed to creating a flourishing podcast ecosystem and continues to enrich and expand its differentiated long audio content matrix. In the fourth quarter of 2021, the company's long audio MAU achieved a new breakthrough of over 150 million, a year-on-year increase of 65.

? Based on the deepening cooperation with Tencent’s ecosystem and the company’s continuously improving promotion capabilities, the company has attracted a wider user group to experience the audio and video content on the platform, including but Not limited to: 1) Jointly broadcasting the Mayday New Year’s Eve concert with WeChat video account; 2) Jointly premiering the Chinese theme song “Lonely Warrior” sung by Eason Chan for the animated series “League of Legends: Battle of Two Cities” with Tencent Video; 3) Through the company's long-form audio content of the same name, we collaborated with Tencent Video to promote the hit TV series "Swordsman in the Snow".

? The company actively fulfills its social responsibilities by carrying out a number of music charity activities, including creating the country's first low-frequency charity album "Hear "Hear Not" for people with mid- and high-frequency hearing loss. "Music" and the creation of the "2021 Little Red Flower Echo Music Season" event, attracting hundreds of musicians to participate in submissions for charity song creation.

In March 2022, in order to continue to enrich the online karaoke experience and further deepen its influence in the international market, the company will cooperate with Pokekara, which operates Japan’s leading online karaoke product. Entertainment Time Company signed the final controlling stake acquisition agreement.