Company: TME
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056949
Chunk: 223

Company: Tencent Music Entertainment Group
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 223
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 its worldwide income at a rate of 25%. See “Item 3. Key Information — 3.D. Risk Factors — Risks Related to Doing Business in China — We may be classified as a ‘PRC resident enterprise’ for PRC enterprise income tax purposes, which could result in unfavorable tax consequences to us and our non-PRC shareholders and ADS holders and have a material adverse effect on our results of operations and the value of your investment.”
In December 2021, the Organization for Economic Co-operation and Development published Pillar Two model rules, enabling jurisdictions to enact domestic tax laws to implement a globally agreed common approach. These rules apply to multinational groups with annual revenue of EUR750 million or more in at least two of the four fiscal years preceding the tested fiscal year, potentially including Tencent, the Group’s ultimate holding company. As a result, the Group may be subject to a top-up tax on profits in jurisdictions where the effective tax rate falls below a minimum of 15% according to the Pillar Two model rules. As of December 31, 2024, the Group mainly operates in the Chinese mainland, Hong Kong and Cayman Islands where the legislation is not yet enacted. Some subsidiaries are located in jurisdictions where the legislation is enacted but not yet in effect, primarily Japan. Tencent and the Group are assessing their exposure to the Pillar Two legislation and estimate that it would not materially change the Group’s income tax for the year ended December 31, 2024. Since none of the Pillar Two legislation has taken effect, the Group does not recognize any current tax for the year ended December 31, 2024. Regarding deferred income tax accounting, the Group has applied the exception to recognizing and disclosing deferred income tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
Results of Operations
The following table summarizes our consolidated results of operations and as percentages of total revenues for the periods presented.

                                                                                                                                                           For the Year Ended December 31,    
                                                                                               2022                               2023                                                2024    
                                                                               RMB                %               RMB                %               RMB              US$                %    
                                                                                                                                                     (in millions, except for percentages)    
Revenues                                                                                                                                                                                      
Online music services                                                       12,483             44.0            17,325             62.4            21,742            2,979             76.6    
Social entertainment services and others                                    15,