Company: TME
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056949
Chunk: 226

Company: Tencent Music Entertainment Group
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 226
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 ratio for live streaming performers also contributed to the margin improvement.
Operating expenses
Our operating expenses decreased by 6.8% from RMB5,018 million in 2023 to RMB4,676 million (US$641 million) in 2024.

Selling and marketing expenses
Our selling and marketing expenses decreased by 3.6% from RMB897 million in 2023 to RMB865 million (US$119 million) in 2024.
General and administrative expenses
Our general and administrative expenses decreased by 7.5% from RMB4,121 million in 2023 to RMB3,811 million (US$522 million) in 2024 primarily due to lower employee-related expenses.
Interest income
Our interest income was RMB1,196 million (US$164 million) in 2024, as compared to RMB1,052 million in 2023. The increase was primarily due to increased balances of our cash and cash equivalents and term deposits.
Other gains, net
Our other gains, net, were RMB165 million (US$23 million) in 2024, as compared to RMB230 million in 2023. The decrease was mainly attributable to decrease in government grants and tax rebates.
Operating profits
As a result of the foregoing, our operating profit for the year increased by 43.8% to RMB8,710 million (US$1,193 million) in 2024 from RMB6,059 million in 2023. Operating margin increased to 30.7% in 2024 from 21.8% in 2023.
Finance cost
Our finance cost was RMB94 million (US$13 million) in 2024, as compared to RMB141 million in 2023. The decrease was primarily due to the foreign exchange gains recognized in 2024 versus foreign exchange losses in 2023, which arose from the fluctuation of exchange rate between RMB and U.S. dollars.
Income tax expense
We had an income tax expense of RMB825 million and RMB1,603 million (US$220 million) million in 2023 and 2024, respectively. Our effective tax rate was 18.4% in 2024, as compared to 13.6% in 2023. The increase in the effective tax rate was primarily due to the accrual of withholding income tax on earnings remitted by our PRC subsidiaries to offshore entities