Company: TME
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056949
Chunk: 219

Company: Tencent Music Entertainment Group
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 219
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-quality music content. Our music content is critical to expanding our product offerings, attracting users and driving monetization for our online music and social entertainment services over time.
We expect that our cost of revenues including, in particular, our service costs, will fluctuate in absolute amount in the foreseeable future as it is affected by various factors as discussed above. Specifically, we expect content costs to rise as we continuously broaden our offering of copyrighted music and improve original content creation. In terms of our social entertainment services, we may continue to experience fluctuations in the fees paid to content creators due to changes in social entertainment revenue. In the foreseeable future, we expect cost efficiency to improve through optimizing revenue mix and cost structure, alongside our continued focus on cost control to enhance returns on service costs within our cost of revenues.
Operating expenses
Our ongoing effort is to enhance the cost-effectiveness of our operating expenses. The following table sets forth a breakdown of our operating expenses, in absolute amounts and as percentages of total operating expenses, for the periods indicated.

                                                                                      For the Year Ended December 31,
                                         2022                                  2023                              2024
                                               RMB         %          RMB         %          RMB        US$         %
                                                                                (in millions, except for percentages)
Operating expenses                                                                                                   
Selling and marketing expenses               1,144      20.6          897      17.9          865        119      18.5
General and administrative expenses(1)       4,413      79.4        4,121      82.1        3,811        522      81.5
Total operating expenses                     5,557     100.0        5,018     100.0        4,676        641     100.0
Note:
(1)Includes R&D expenses of RMB2,580 million, RMB2,525 million and RMB2,280 million (US$312 million) in 2022, 2023 and 2024, respectively. 
Selling and marketing expenses. Our selling and marketing expenses consist primarily of (i) branding and user acquisition costs; and (ii) salaries and other benefits paid to our sales and marketing personnel. We seek to continually enhance the cost-effectiveness of our selling and marketing expenses while incrementally increasing our investment in areas with sustained growth prospects.
General and administrative expenses. Our general and administrative expenses consist primarily of (i) R&D expenses