Company: TME
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056949
Chunk: 228

Company: Tencent Music Entertainment Group
Filing Date: 2025-04-23
Form: 20-F
Item: Item 5
Chunk 228
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4.31                            0.59    
Diluted                                                                                                 2.27                            3.11                            4.24                            0.58    
Earnings per ADS (Non-IFRS financial measure)(4)                                                                                                                                                                
Basic                                                                                                   2.96                            3.79                            4.97                            0.68    
Diluted                                                                                                 2.93                            3.74                            4.90                            0.67    
ADS used in earnings per ADS computation                                                                                                                                                                        
Basic                                                                                          1,601,997,986                   1,560,826,843                   1,542,115,015                   1,542,115,015    
Diluted                                                                                        1,617,253,678                   1,584,193,016                   1,565,430,860                   1,565,430,860    
Notes:
(1)Represents the amortization of identifiable assets, including intangible assets such as domain name, trademark, copyrights, supplier resources, corporate customer relationships and non-compete agreement etc., and fair value adjustment on music content (i.e., signed contracts obtained for the rights to access to the music content for which the amount was amortized over the contract period), resulting from business acquisitions or combination. 
(2)Includes the net losses/gains on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments and other expenses in relation to equity transactions of investments. 
(3)Represents the income tax effects of Non-IFRS adjustments. 
(4)Each ADS represents two of our Class A ordinary shares. 

Recent Accounting Pronouncements
For detailed discussion on recent accounting pronouncements, see Note 2.2 to the consolidated financial statements of Tencent Music Entertainment Group included elsewhere in this annual report.
5.B. Liquidity and Capital Resources
Cash Flows and Working Capital
Our principal sources of liquidity have been cash generated from operating activities. As of December 31, 2024, we had RMB13,164 million (US$1,803 million) in cash and cash equivalents. Our cash and cash equivalents consist primarily of bank deposits and highly liquid investments, which have original maturities of three months or less when purchased. In addition, we had RMB24,418 million (US$3,345 million) in term deposits as of December 31, 2024. We believe that our current cash, cash equivalents,