Company: TME
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056949
Chunk: 213

Company: Tencent Music Entertainment Group
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 213
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 Information—D. Risk Factors— Risks Related to the Group’s Corporate Structure—

Uncertainties remain as to the interpretation and implementation of the Foreign Investment Law of the PRC and how it may impact the viability of the Group’s current corporate structure, corporate governance and business operations.”
Specific Factors Affecting Our Results of Operations
Our ability to maintain our user base and further increase their engagement level
We generate revenues primarily through membership sales and virtual gifts which are closely tied to both the size of our user base and user engagement. Given our already large base of MAUs, we have increased our focus from simply increasing MAUs to enhancing user engagement. See “Item 4. Information on the Company — 4.B. Business Overview — How We Generate Revenues — Online Music Services — Music Subscription” for more information about music subscription packages. Our ability to maintain our user base and continue to increase user engagement depend on a variety of factors, including our ability to expand and diversify our content offerings, provide smart content recommendations, deliver a differentiated user experience, encourage users to explore multiple services across our platform, improve the interaction among users, and enhance our brand reputation.
We adopt a holistic approach to operating our online music services and social entertainment services to seamlessly integrate both services. We leverage our strong product features, content recommendations, and technological capabilities to create a cohesive experience for our users. For example, users can easily navigate from the listening page of a song on our music apps to the singing page on our social entertainment apps. Additionally, we provide real-time live streaming recommendations based on the music users are currently listening to on our platform, enhancing their overall experience and engagement. This integrated approach helps us maintain our massive user base and continuously increase user engagement across our services.
Our ability to strengthen monetization capability, increase paying users and drive quality growth
Our results of operations depend on our ability to deepen monetization from our massive user base, by increasing paying users enhancing spending per paying user and other diverse monetization approaches.
The table below sets forth certain key operating metrics —MAUs, paying users, paying ratio, and monthly ARPPU—for our online music services and social entertainment services for the periods indicated. These figures have not been adjusted to eliminate duplicate access of different products and services by the same user, if any, during any given period.

                                                                  For the Year Ended December 31,    
                                                   2022                 2023                 2024    
MAUs(1) (in millions)                                                                                
Online music services - MAUs