Good evening, good morning, and welcome to Tennessee Entertainment Group's 4-4-4-3-4-8-2025 Ernest Conference Call. I'm going to turn to Heather Haya. We announced our financial results earlier today before the U.S. market opened. The Ernest Reuse is now available on our website and via newswire services. During today's call, you'll hear from Mr. Cushing-Hong, our Secretary Chairman, and Mr. Ross Leanne, our CEO, who will share in a review of our our company's strategies and business efforts. Then, Ms. Sherry, who is our step forward, we discuss our financial results before we open the call for questions. Before we continue, I refer you to the same topic statement in our earnings reviews, which applies to this call as we made full-looking statements. Please note that we discuss non-IFRS measures today, which are more thoroughly going in reconcile to the most comparable measures, reported under IFRS and IMS release and balance with the SGC. All participants are muted at this time. After management's remarks, there will be a Q&A session, and please give us that today's call will be recorded. With that, I will now turn the call over to Tushin. Please take it to Chairman of Tushin, please.

Thank you, Melissa. Hello, everyone, and thank you for joining our call today. In 2025, we remain the discipline in executing our dual-engine content and platform strategy, delivering accelerated revenue growth and sustained margin expansion. Our differentiated all-in-one music service platform has fueled solid subscription growth and strong momentum across our non-subscription operates. This enables us to unlock crypto value from music IPs, create new opportunities for artists, and address a larger market. As a competitive landscape continues to evolve, our proven ability to deliver integrated, extensive, and multifaceted services give us a distinct competitive advantage. With disciplined investment and continued innovation focused on long-term value creation, we are confident in leading the industry advancement. Our competitive edge first and foremost stems from our industry-leading user copyright portfolio. Building on our high-quality IP access, we have expanded a comprehensive suite of music services to create holistic value for music creators and contribute to the long-term growth of music industry. Leveraging our deep insights into the industry, we have amplified our content strength and addressed the evolving listening preferences of our users. First, our timeless and classic music catalog foster deep emotional connections and serve as a cornerstone of our subscription business. This is why music can be so long-lasting and enduring in terms of monetization. Pushing forward from a position of strength, we recently renewed the contract with Warner Music Group and Bean Music, exploring new avenues for physical albums, merchandise and live performances. We We also deepened an alliance with media Asian music, introducing Dolby Atmos to over 300 iconic tracks by legendary artists including Yishen Chen, Chen Yishun, Leslie Zhang, Zhang Guorong, and Andy Lau, Liu Dehua. For the first time, elevating the value of our classics with a more immersive listening experience. Second, we continue to deepen differentiations through our proprietary content. The streaming share of our self-produced content keeps growing as listeners seek unique high-quality genres and musical experience. For example, our mid-autumn filmed hit, Year After Year, Sui Sui Nian Nian, performed by Shaodan, charted in 17 countries and regions, and generated over 100 million social media views in a single day. Furthermore, our capability to craft hits OSTs continues to strengthen. In the fourth quarter, we produced a Facebook 14-track OST suite for Tencent Video's hit drama Shine On Me which topped multiple music charts during the drama's broadcast. In addition, several of our co-producer songs were featured on the 2026 CMG Spain Festival Gala which then quickly went viral with multiple tracks surprising 10 million streams in just a few days. Third, we continue to gain share among younger users thanks to our coverage of that resonate well with this user cohorts. Kpop, for instance, is capturing and increasing shares of streams. Our recently renewed partnership with PNation Corporation secured a 30-day Head Start benefit to new releases from top Korean artists and groups, such as Psy, Crush, Hwasa, Baby Don't Cry, and TNX. Keeping users at the forefront of global trends, Our thriving Tencent Musician platform, an established avenue for indie and up-and-coming artists, is also vital to meeting the growing advantage of young audiences for diverse music styles. This quarter, we partnered with the indie band Find, a music group with over a million followers. Their tracks, including the viral Kids Briefing Decision, Hu Xie Jue Ding, sparked enthusiastic community interaction among young users. Years of dedication efforts and our distinctive competitive edge within the content and platform ecosystem have enabled us to accelerate the comprehensive expansion of our music services. We believe this is quite unique to TME, enabling us to continue leading music consumption along the entire music industry chain. Beyond music subscription, we see tremendous potential in other music-related value-added services. We aim to grow and expand our total adjustable market sustainably, guarded by our deeply rooted and strong conviction in serving, protecting and unlocking the full value of music IPs. Building on our momentum, we continue to push boundaries by hosting more high-quality live experiences that empower artists in expanding their audience reach. First, let me begin by highlighting that in 2025, we showcased our production capabilities with multiple flagship events, including G-Dragon's Chen Jilong World Tour. The 20 concert tour across eight cities in Asia-Pacific attracted over 260,000 fans. This highly sought-after tour featured two landmarks shows at the Taipei Dome in the fourth quarter, drawing over 75,000 fans, the largest-scale events that we have hosted for him. This unprecedented success proved our ability to execute compacts, high-profile tools, and laid a solid foundation for future collaborations with top-tier international artists. Secondly, through continuous investment across the music value chain, we have built a diverse and robust lineup of strategic artists. We collaborate with them across music promotion, live performances, artist management, and merchandise. And these investments have begun to bear fruit. Contributing to strong growth in our non-subscription revenue in 2025, our strategic artist portfolio will include Hila Amu, Wilpeng, Tan Weibo, Fiona Sixx, Xie Kaiqie, SilenceWang, Wang Shulong, Jin Ju Wu, Wu Kexun, Teer Wei, Yuan Yauwei, Jane Zhang, Zhang Liangmin, Angela Zhang, Zhang Shaohan, Zhang Yuan, and Guy Zhou Yan. Through these efforts, we offer friends a richer array of music consumption and well-rounded entertainment experiences. While transforming music and artists into influential IPs, further extending their value and impact third beyond live concerts we continue to introduce innovative merchandise formats to spark new waves of fan-based consumption a prime example was the kids album for assurance latest release played marking our first partnership with a top tier western artist using this hybrid physical digital format we also enhanced esther yu Yu Shuxing's physical album, Spicy Honey, with a suite of collectible elements, pushing fans, and engaging engagement. In addition, we make a breakthrough in expanding artist merchandise with new tour-themed collectibles, which are highly valued by fans as tangible extensions of the live concert experience and emotional connection with their favorite artists. Our exclusive edition Lei Zhang's Zhang Yixing's Grand Night Founders, two special commemorative gift box and the special release of Luhan's 2025 Luhan's Season 4 Asia Tour commemorative album, integrated with SVIP privileges, both achieved a strong sales across the board. I am pleased to say that we more than double revenues of IP-related merchandise and fan-based consumption as we exceeded 2025. As advertising and other IP-related offerings scale, and as we offer multi-tiered membership for online music subscription, the business impact of each paid membership varies. Given the significant evolution of our business model in recent years, our focus has moved beyond the number of paid subscribers and ARPPU. The operating matrix for our online music services adopted at our listing, instead we are increasingly focused on revenue and profits as our primary performance indicators. Reflecting this shift, starting from the next quarter, we will just continue to disclose the certain operating matrix on a quarterly basis. Going forward, we will report annually the number of total paying users across our music services as of year end. Last but not least, with social responsibilities embedded in our core strategy, we continue to improve accessibility and inclusive design, making our products more user-friendly. For example, QQ Music introduced a hearing protection mode for children, leveraging AI and user insights to reduce sharp and sensitive sounds for safer and more comfortable listening experience. Meanwhile, we think upgraded its large front mode to better serve more users with adoption exceeding 50%. To wrap up our thriving fuel engine ecosystem anchoring by content advantage, comprehensive service offerings, and innovative excellence enable us to effectively serve a diverse range of user creators and friends throughout unlocking the IP value and enhancing monetization efficiencies. Looking ahead, we will continue to reinforce our core strength and broaden our reach to capture the significant growth opportunities before us. Now, I would like to hand the call over to Ross for a deeper dive into our overall platform development. Ross, please go ahead. Thank you for your question.

Hello, everyone. In an area of rapid technological advancement and evolving consumption expectations, apart from what the question just discussed, we stated that Nebo acting proactively across support to serve our users better and keeps the flywheel of our content platform growing with our deeper commitment to user value we have built a comprehensive multi-pronged membership system designed to drive effective subscriber conversion stronger engagement and a deeper share of wallets we continue to lead music consumption trends through ongoing technological and product innovation. Inspiring users to explore a broader range of music genres and discovered artists. Driven by differentiated expensive content privileges as well as immersive experiences, we ended 2025 with over 20 million SYP users with ARPPU trending sending upward. Our new AD-supported subscription plan is also gained initial traction. Over time, it will allow us to broaden user access and attract new audiences to our platform. We continue to innovate product metrics to deliver highly depreciated offerings that make music consumptions seamless and accessible anytime and available. First, we further deepen and integrate our presence across marketing devices. While mobile apps remain our core access point, we have also penetrated further into PC, in-car, smart speaker, and available ecosystems. This makes music consumption an integral part of users' daily lives, whether they are commuting and at home or at work. Second, our multi-platform portfolio enables us to cater to a wide range of user habits and preferences, while Google Music and QQ Music offer comprehensive premium services to highly engage users with a strong willingness to pay. Light versions such as body music and the Google concept, so our casual listeners effectively. Third, we are integrating social features to amplify user switch and both user acquisition, conversion, and engagement. In Code 4, 2Q Music introduced Mayworth DM, onboarding 117 artists from Hive and other levels to broaden artists' fan interaction channels. Bubble upgrade its functionality with an intelligent song recognition feature that automatically detects song titles, screenshots, or links shared by artists and enables one-time playback. Together with a launch of live streaming for domestic artists, this enhancement It's also worthwhile to mention that this year's a new music report campaign, I did handwriting letters and AI generated voice messengers from artists, further strengthening users' engagement and encouraging widespread sharing. As over-expanding user cases result in broadened audience reach, We remain focused on harnessing AI to import music creation and elevate user experiences. From music creation and production to distribution and consumption, we are making music consumption more fun and personalized. First, our AI tools are interested in enriching content supply. Today, over 10 million users and more than 150,000 professional creators use our one-stop AI music production platform. Features such as track refinement and AI-generated vocal demos accelerate music creation. In addition, AI auto-captured torres, highlights, and generated video clips based on lyrics, delivering more engaging audio-video experiences through quick-listen mode. Second, we are deepening cooperation across the broader Tencent ecosystem to enhance content distribution and consumption. We enhance our self-development multimodal large model, driving our recommendation-driven stream share to a record high. We also deepen collaboration with Weixin video accounts by co-creating trending music charts and adding BGM music links in the comment section for the joint promotion of hit songs. Meanwhile, Yuan Bao has also been embedded into QQ Music. This has not only boosted user engagement, but also provided deep insight into our user preferences and needs, thereby improving distribution efficiency. Third, we have integrated AI across the end-to-end music consumption journey. Put by Yuan Bao, QQMusic's AI agent has evolved into a system-level hub, allowing users to handle complex multi-step tasks using natural language commands. For example, Beyond Music Discovery, the AI agent provides direct access to digital albums and merchandise purchase, creating a seamless intent-to-action experience that drives conversion. Last but not least, we continue to scale and differentiate our SVIP membership, capturing new audience segments and leveraging our uniquely comprehensive ecosystem to deepen music consumption and unlock substantial monetization opportunities, particularly through our growing fan-based economy. As we constantly deepen collaboration with music labels, artists, and introduce new high-value benefits, our SYP users surpassed the 20 million milestone, confirming the success of our strategy. Our further enriched membership benefits fulfill the diverse needs of a broadened user base during both SYP sign-ups and For example, the apportment of Ruang Ding Yixi, Ju Jingyi, and Carrie Wang Wang Junkai as QQ Music SYP Brand Ambassadors, and Liu Yuning as Google's Music's first-ever Brand Ambassador, paired with limited edition physical and virtual gifts, posted SYP subscription. The prioritized SYP ticket package for the annual gala of Melody Journey II and QQ Music Top Music Night 2026 also result in effective SYP adoption. We also grow of starlight card roster to include career artists like Ivy and N-Mix enriching the carpool and attracting fan participation. At the same time, feature-related perks continue to drive SYP acquisition and rotation. Highlights include QQ Music co-branded DTS X and proprietary NAC song formats. Google Music's scenario-specific DTS sound effects and festivals and co-branded skin with renowned artists like Yisheng Chang, Chen Yishun, SilenceWang Wang Sulong, and Zhou Shen. All of this added to a more immersive listening experience and deeper fan engagement. To summarize, our commitment to product excellence, innovation, and value creation has propelled resilient growth in a dynamic and competitive market environment. Looking ahead, we remain dedicated to this long-term user-centric approach, sitting at the forefront to capture new growth in the sustainable music ecosystem. With that, I would like to turn the call over to Shirley, our CFO, for a deep dive into our financials.

Thank you a lot, and greetings everyone. Let me now turn to our financial results. We closed 2025 with outstanding financial performance in both top-line and bottom-line. We achieved robust growth in new subscription, advertising, offline performance, and artist-related merchandise sales, and successfully implemented our ROI-focused approach for promotional expenses. I will first talk about Q4 2025 performance. In June 4, 2025, our total revenues grew 16% year-on-year to R&D 8.6 billion, driven by strong growth in online milk services. The milk subscription revenues continued growth momentum up by 13% year-on-year and reached R&D 4.6 billion in June 4, 2025. Revenues from milk service other than milk subscription were R&B 2.5 billion, up by 41% year-on-year. For milk subscription revenues, as Ross discussed earlier, we have built a multi-prolonged membership system that includes AD supported membership, standard membership, and HIP to serve users with different needs and preferences. This system has been well received and successfully needed to increase user retention and growth in musical subscription revenues. We continuously enrich privileges and benefits and provide limited time-event opportunities for our SOIP members. In Q4, we appointed the O-Lean as Google Musical's first ever brand ambassador, together with limited edition, physical and visual gift sales. In addition, we offered a prior to ticketing for the new Maladie Journal 2, gather and transcripts for our SIP members. Advertising revenue continued its growth strategically, both year on year and sequentially, primarily driven by the following. First, our AD supported model continued its robust growth as a result of increasing the number of advertisers, higher interest rates, and higher ECPN. Double in-line shopping festival also contributed to the sequential revenue growth. Second, sponsorship advertising achieved strong growth. Offline performance and music festivals have broadened our user scenario and effectively attracted more brands. thereby driving growth in sponsorship advertising revenues. Over the past few quarters, our offline performances and artist-related merchandise sales have made significant progress and gave the impressive results. In June 4, we hosted two grand shows in Taipei for G-Dragon and provided artist-related merchandise sales during the show, which were exceptionally well received. We also collaborated with Simon's Wanchero to deliver a series of successful concepts, providing fans with distinctive experience. Meanwhile, we have established cooperations with strategic artists across musical promotion, offline performances, and artist-related merchandise to provide more immersive experience for fans and helped enrich privileges of SYP membership. Revenants from social entertainment services and others were armed in 1.5 billion, down by 5% year on year. Our growth margin in Q4 2025 was 44.7%, up by 1.5 percentage points year on year, which was mainly attributable to strong growth in Munich subscription and advertising revenues, alongside a lower revenue-sharing ratio in social entertainment services. As we continue to invest in new billionaires, such as offline performance and artist-related merchandise sales, revenue mix between music subscriptions and these new billionaires may cause fluctuations in over gross margin. Moving on to operating expenses, they amounted to R&B 1.2 billion, representing 14.4% of our total revenues in Q4 2025 compared with 15.7% in the same period of last year. Selling and market expenses were R&B 266 million, up by 7% a year, primarily due to higher channel spending and content promotion expenses. We will keep monetary market conditions and increase content promotion and channel spending as needed, with our eye-focused financial assistance. General and administrative expenses were on the $981 million, up by 6% in a year, primarily due to growth in employment-related expenses. Our effective tax rate for Q4 2025 was 70.5%. For Q4 2025, our net profit increased by 10% to R&B 2.3 billion. And the net profit as a growth to equity holders of the company increased by 13% to R&B 2.2 billion. Non-arvest net profit increased by 8% to R&B 2.6 billion, and non-arvest net profit attributed to active holders of the company increased by 9% to R&B 2.5 billion. Our diluted earnings per ADS this quarter was R&B 1.41, up by 12% year-on-year, and non-arvest diluted earnings per ADS was R&B 1.6, up by 9% year-on-year. As of December 31st, 2025, our combined balance of cash, cash equivalents, term deposits and short-term investment was RMB 38 billion. As compared to RMB 36.1 billion as of September 30, 2025, this combined balance was effected by changes in the exchange rate of RMB to UFD and different balance states. Next, I'll briefly discuss our performance for the full year of 2025. Total revenues were R&B 32.9 billion, up by 16% year-over-year. Revenues from online milk surveys were R&B 26.7 billion, up by 23% year-over-year. The increase was driven by strong growth in milk separation revenues, supplemented by growth to revenues from offline performances, advertising services, and artists related to merchandise. Our new subscription revenues will be $17.7 billion, up by 16% year-over-year, primarily driven by continuous expansion of membership packages, such as early access to legal performances, artists related to merchandise, and a wider range of premium offerings. revenues from social and chamber service climbed by 7% year-over-year. Growth market in 2025 was 44.2%, up by 1.9 percentage points year-over-year due to the reasons discussed earlier. Total operating expenses for 2025 were up in 4.9% up by 4% year-over-year. Similarly, due to growth in company employee-related expenses and higher-to-component promotion expenses and China spending, in 2025, R&B's net profit increased by 60% to R&B 11.4 billion, and net profit attributable to equity holders of the company increased is about 66% to RMB, 11.1 billion. We have recognized again of RMB, 2.4 billion on being the disposal of an associate in the first quarter of 2025. Non-arguise net profit increased by 22% to RMB, 9.9 billion. And the non-arguise net profit to the global average holders of the company increased by 25% to RMB, 9.6 billion. In March 2026, we declared a cash dividend of U.S. dollar 0.2 per ordination for U.S. dollar 0.24 per ADS for the year ended in December 31st of 2025. The cash dividend of approximately U.S. dollar 368 million is expected to be paid in the second quarter of 2026. Finally, I'll conclude with some remarks on the outlooks. Looking ahead, we will continue our strategy to invest in content and technology. We will keep focusing on IP development and self-produced content. While advancing innovative integrated products with content and platform to build a greater and more dynamic music and entertainment ecosystem, we remain confident in the health source of our families, and are committed to deliver and return to school our share products. This concludes our prepared remarks, operator, we are ready to open the call for the conference.

Thank you. If you are going to invite a phone, please try to ask a question, then please tell me yourself if you are participating in the call from the center of the center of the conference at the station. If there is a call, please give yourself one question, and you will also go back to the If you ask a question in Chinese, please speak English. The next question comes from the line of Alicia and Yipong City Group. Alicia, your line is open.

Hello. Good evening. Good evening, management. Thanks for taking my questions. 管理城,晚上好. 谢谢接受我的提问. 我先用中文问. 我的问题其实是关于就是在现在这个背景, In light of the AI wave and also the growing industry competition, What is the company's strategic growth outlook for 2026? And how does the company plans to capture the opportunities and also address the challenges that arise?

Thank you, Alicia, for your questions. And I will try to answer it from both of the TME's internal and external perspective. Internally, first of all, I think that TME has delivered a very solid result, including growth of top line and bottom lines in 2025 with a healthy growth of subscription and impressive momentum across our non-subscription order rates in particular our non-music subscription business continue to grow and scale further endorsing our content platform will find you and for the music subscription side as we mentioned we have built a three tiers membership system to drive effective member conversions, stronger engagement, and a deeper water share. Our SVIP continue to scale and surpassing 20 million SVIP subscribers in just two years. So we piloted our advertising membership in late 2025 as well, and which allowing us to compete, broaden, and attract new audience, setting the stage for the long-term growth. On the long subscription side, I think that we have further expanded deepening the collaborations with artists and labels and penetrated further into the offline experiences such as a live concerts and merchandise. We believe it is just the beginning and the initiatives are important to enrich the SVIP benefits and allowing us to unlock new growth possibilities and further stringing our competitive advantage as well. From the From the external perspective, I think that the competition is not new to us, but our historical performance has proven that we have always remained agile to compete effectively. We remain focused on long-term value creations, and we believe that our unique content and platform strategy will continue to deliver the high-quality growth in a healthy way. Whether it is a home or a board, we firmly believe that content will lasting value is IP-driven and robust IPs will always enjoy the long legacy. And their value will be further enhanced through bottom distribution, cross-media collaborations and diverse monetization opportunities. And the revenue growth of our expensive non-music subscription services over the past two years illustrated our strength and capability in this regard. So in year 2026, our subscription revenue will experience some short-term pressure due to the intensive competitions. But we believe that our three-tier membership and vibrant non-subscription services will allow us to grow historically, holistically, and also sustainably. And the last point that I would like to address in the 2026 outlook is about AI. We continue to embrace AI to improve our user experience on our platform, and also using AI technology as a tool to improve the efficiencies in content creation and promotion. With our proficiencies on IP creation and management, we believe that with the help of AI, it will further strengthen our competitive advantage and create business value in the long run.

Thank you for your question. And the next question comes from Bingham Kong from Go.

Thank you Manjian for taking my question and congrats on the pretty solid finish in 2025. My question is, I still want to talk about AI. There are a lot of discussion about AI's impact on the entire music industry or the entire industry. Please, please, let us know about how AI can融入 our products and environment. So, thank you, my question is about AI, so actually I want to seek management's thoughts around the AI impact into the overall music value chain. How would T&B embrace AI as we integrate many of our products and our ecosystem and the management thinking around AI impact to music labels, streaming platforms, and user behavior? Thank you.

Yes, in this situation, we should say that in the past three months, AI has really changed, not only the music industry, but also the overall industry in terms of content creation. We've already seen some of the hit songs in the recent three months created by AI.

We've already seen some of the hit songs in the recent three months created by AI. in our platform.

This brings a huge challenge to streaming and music streaming platforms, because for us, we're still trying to promote the songs, especially the original songs.

So we still have to keep up with this kind of attitude. So basically, we want to be in the music industry. I just mentioned that in the music industry, we still have to provide the most effective and convenient So we will continue to embrace the AI technology.

Just now I mentioned music creation, we will continue to provide the most effective, most convenient for creation tools for creators, so as to create a very low threshold for creators.

The music content remains the most important. because nowadays apart from the human created content for music will continue to give more distribution resources to that.

Apart from that, we'll also give some traffic to the AI generating content.

So, we can see that in the entire market, there are many low-level content and features of the AI music.

We've noticed that there are lots of low costs, even some content with some risks of copyright infringement, and even some of the content is already infringing the original copyright. And we are spending lots of efforts in educating this market so as to serve a positive driver to this market.

So, to TME, we are currently at the stage in the music industry. We are in the industry, we will be able to integrate AI in our music industry.

In the music industry, you are also one of the very first companies to fully integrate AI into the music industry.

So just like I mentioned earlier, we have already provided one-stop AI music production tool.

We've already provided one-stop AI music production tool. over tens of millions of average users and over 150,000 professional creators already using our traders. We're also one of the very first platforms here at home to achieve very good commercial value on AI-generated content.

So we believe with the further improvement of AI-generated content, we can continue to tap more potential from the customer key net, and also tap more commercial value value. 另外就是我们在第二点,最重要的我们现在正在全面升级我们的AI agent,也是跟现在的OpenCloud这样的一个趋势比较类似,我们希望我们的这样的一个助手能够在我们的站内帮助用户去完成更加全面的这样一个行为。 More importantly, we're also operating our AI agent, similar to OpenCloud, we hope that with this AI agent, it could help our users to fulfill their target on our platform. So from TMA to TMA, AI's influence is in many ways. So it's a big challenge for us. But we believe that there is still a huge opportunity. Our actions are all over the world. But we believe that in the future, it's a very useful path. We can get it to the end.

TMA has faced a lot of challenges. It is a big challenge. But we believe it remains to be a huge opportunity for us. We're embracing AI, and we believe AI will serve as a positive friend to TI. Some additional comments, apart from what just Ross discussed, at TME, we're trying to make music creation more convenient and so as to provide a better user experience. At present, we can see that AI2s indeed is making music creation and production not convenient, but on the copyright, it's not just about songs, and IP also matters a lot, so in the future, we'll also give more input into IP creation. The addition of our offline music experience, also also matters, like live concert, fan-based economy, merchandise, and these things can be partly replaced by AI technologies, and we'll keep investing or giving more input into optimizing our IP, and in the meantime, we'll also leverage AI to improve the efficiency of music production.

Thank you. And the next question comes from Thomas Chong from Jefferies, and Thomas, please.

Thank you very much. We talked about during our prepared remarks, the investment in content, IP development, innovative products. But if we look at it from a financial perspective, how should we think about the trend in terms of our GP margin, the trend for our OPEX, and the earnings growth for this year? Thank you.

In general, our 2026GP will stay flat with 2025, will be a little bit lower than 2025. 第一点,随着包业业务及广告业务收入的继续增长,我们同时内容成本结构会继续做优化,并且持续关注内容成本的IOC的提升。 那我们预计了包业业务和广告业务的增长仍然会对我们的毛利总和毛利利益的影响。 Number one, with continuous growth of our subscription business and advertising business, and it will continue to optimize our cost and which will boost the ROC. So with the sustained growth of the sub and ads advertisement to the business, it will contribute positively to our GDP margin and total GDP profit. In addition, the recent adjustment of iOS mission fee also serves as an authentic driver strategy part. In addition, number three, we will continue to strengthen our economic cooperation with high quality IT, and also have more self-produced content so as to create a better competitiveness.

And the fourth point, we will continue to strengthen our economic cooperation with high quality IT, and also have more self-produced content so as to create a better competitiveness.

Number four, we will continue to deepen and expand our collaboration with the soft-tier labels and artists, and so as to create more arriving on life answers and different devices. This will enrich and expand our ways of monetization. At the beginning of the development of businesses, it may have some minor negative impact on our In the long run, with more For services meeting the diversified demands of our users, it will also generate a higher arbor of each user.

IP and版權的全方位投入組合也可以帶來一定的成本效率的提升.

Input into IP and copyright will also help improve our content cost. The deepbundling with the important industrial players will also provide diversified services to us, and it will also help improve our efficiency of each business. We believe in the long run, we will keep growing our top line and GP margin, and we believe our GP margin will stay at a sound and steady level. 。 。 。 About our operating profit, we have to admit that in the face of current viewers' synthetic landscape, plus the changes brought by AI as we just discussed, and we will continue to get more input into content and with our strategic upgrading, and we will keep improving our one-stop music services to our users, we enhance our users' awareness so we can maximize the value of music. We will not just spend on marketing. by a very large margin or by a very large volume, we will still be focused on our core value, which is our users and our ecosystem. And we will keep investing in self-produced content and to improve our channel costs. And based on the ROI calculation, we will continue to test more value on our page users so as to achieve a steady and sustained growth. In 2026, our total net profits will be improved, and the margin will be similar to 2025, might be a bit lower than 2025.

Thank you. And the next question comes from Alex from JEP. Thank you.

Thank you for taking my question. 需求端有没有变化是说AI产生的音乐以后这个带来了新的原来不怎么听音乐的人因为现在他们的口味可以被AI更好的满足所以他们现在开始花更多时间来听音乐还是说听音乐的还是那拨人但是他们的时间从百分之百听人制作的音乐转到了一部分这个AI的音乐就是说供给端肯定是会极大的丰富但是需求端出现什么样的变化 请管理层给我们分享一点这个你们的观察和思考 那另外第二个问题呢是 如果中长期音乐的制作门槛被AI极大的降低了 比如说我Alex通过一个月付某个AI软件20块钱 可以大规模的产生很多的音乐 那当我的这个或者说很多的这种民间草根的这种AI产生的音乐 它们在时长上占据了越来越多的这个时长和比例的话,那会不会影响这个今天我们这个音乐这行业的这个版权费用或者版权收入的这个整个的池子? 如果那个池子发生变化了以后,我们这个在线音乐的商业模式需要做怎么样的调整去适应这种变化,也就是说AI把这个内容的这个壁垒和成本大幅的拉低,甚至是影响了今天这个赚钱的业务模式,那我们会做什么样的调整啊? I have two questions. Number one is regarding the impact from AI generated music content, particularly on the demand side. Are we seeing AI content generate additional and incremental demand for music consumption, or this is more of a zero-sum game in terms of a total consumer time span on music content? And second question is regarding the royalty pool. If medium to longer term, the AEI will demodelsize the music content generation, will that gradually eat into the royalty pool from monetization perspective?

And if that's the case, should we consider changes to our business model to fit the new supply side of the change? 这两个挺有趣的两个问题 首先我看第一个其实从本账来看 目前AI最大的改变主要改变的是网络歌曲这个生态 因为在我们以前我们也知道网络热歌 所出现的情况也是这种歌曲很火 但是你并不知道这句歌是个人唱 并不是哪个人来唱 就基本上会出现那种歌 或人不活的一个现象 所以最近三个月所出现的情况 就是很有意思的情况 最近三个月爆发的增长 是确实我们在排行榜上 出现了大量的AI的歌曲 In the recent three months, very interesting enough is we do see some hit songs on many music rankings.

We have to know that the short-form video sites have already given a big boost to this AIGRA music.

The second thing is that most of the songs are not original songs, so if you look at this sector, the AI-generated content are rarely original. So as you can see on大头针, most of the songs are just re-song, so basically the quality itself is So what is changing is the sound quality. will experience a rapid development, but in terms of the question you just asked about the consumption of the original songs, we are not aware of big changes. That is the second question. UJC is actually you can find it with UJC and UJC in the future UJC. It is with UJC and UJC in the future UJC. It is with UJC and UJC.

So you may see a similar time to the UGC chat and videos, which is to say that maybe in the future many people can make music, like they can take pictures and videos now.

So you want to see now, whether it's INS or Facebook, or TikTok, or if you want to do it in the future, 未来可能就一样一样的现象 也就是说 UGC本身也仅仅是在社交网络 在自己的关系圈里面能够起到更多的传播 但实际上在版权这部分或者在分层领域中仍然还是来自于PGC 或者更高的我们称为OJC的这样的内容 所以音乐也一样 就其实这个问题的答案就是我认为目前在无论是怎么样 UGC也仅仅只能去提升我们在用户之间的一个这样的一个传播方式 但是它基本上对于我们目前的版权分成是不会有多大改变的。

Well, if you look at Inns, Facebook, TikTok, or Douyin, well, it may be well distributed among the social media, just between the familiar users. But if you look at the copyright loyalty or the revenue sharing, it still comes from PGC or OGC, so it's the same for the music industry. So my opinion is that UGC will be well distributed among the familiar users, but in terms of royalty and revenue sharing, we do not see material changes.

So we are now taking a big effort to do such a platform. We hope that a lot of users can be able to use such tools to produce such content. And in the future, we will be able to create such a social media platform in TME.

We are selling lots of peppers trying to make a platform to allow our users to create or produce music. And we hope that in the future, on TME platform, we can also make a social platform about music content.

I'll just add one more question. This question is a very important question. Now, from the目前 perspective, just according to Ross, we have AI-sync of the music, and AI-sync of the music, it uses AI-sync of the music, but in the music, it uses the sound of the music, so it's an IP-sync of the music. So it's with the tradition of the music as the same as the same as the music. But if it's using AI-sync of the music, then it's not going to be in the way I want to have some additional comments.

First of all, this question really deserves more thought, and I think this is also a critical And just to follow up by what Ross said, AI-generated music or content, if it is sung by human sound, while the revenue sharing mechanism will remain the same with traditional model. If this is what wholly AI made, well, you have a different royalty sharing model. model. But those UGC platform, maybe they have to adopt like incentive model or something else, but it doesn't generate any material change or impact on the current business.

Okay, we have time for one more question. It goes to Maggie from SA Magnetons.

Thanks, management, for taking my question. Since this is the last one, I'll get a housekeeping Wondering if there's any updates you can share with us regarding the proposed 喜马拉雅 acquisition due, and partly relating to that, what's management latest thought on the share rate purchase program, we noticed that there's still a

Thank you.

Well, we're still communicating with the regulator of the Shimalaya, do you, if there is any the update will be disclosed at the point. We have always valued our shareholder return. This year, as you can see, our dividend payout is far higher than last year, which shows the price to emphasize on shareholder return.

According to our stock market return, we had a two-year return plan, and we will be able to respond to the market needs and meet the revenue requirements.

Currently, the Ashire Buyback will stick to the previous plan, and we will respond to in the market and these, well, meetings are rather very important.

Thank you everyone for joining us today. If you have any further questions, please feel free to return to the IRT. And this concludes today's call. And again, thank you and look forward to seeing to your next call.

Thank you very much. Thank you.

Thank you.