Company: TME
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056949
Chunk: 4

Company: Tencent Music Entertainment Group
Filing Date: 2025-04-23
Form: 20-F
Item: Item 3
Chunk 4
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RC subsidiaries for their operations. As of December 31, 2024, the loan balance owed by the VIEs from the WOFEs was RMB11 million (US$2 million). Our PRC subsidiaries maintained certain personnel for content production, sales and marketing, research and development, and general and administrative functions to support the operations of the VIEs. In 2022, 2023 and 2024, the VIEs transferred RMB16,415 million, RMB16,610 million and RMB18,820 million (US$2,578 million), respectively, to our PRC subsidiaries as payment of services fees (the “Service Charges”). In 2022, 2023 and 2024, the intercompany fund transfers from the WOFEs to the VIEs amounted to RMB395 million, RMB49 million and RMB149 million (US$20 million), respectively for treasury management purpose.
As advised by our PRC legal counsel, for any amounts owed by the VIEs to our PRC subsidiaries under the VIE agreements, unless otherwise required by PRC tax authorities, we are able to settle such amounts without limitations under the current effective PRC laws and regulations, provided that the VIEs have sufficient funds to do so. On May 11, 2024, our board of directors adopted a cash dividend policy, under which we may choose to declare and distribute a cash dividend each year in accordance with our memorandum and articles of association and applicable laws and regulations. For more information about our dividend policy and history, see “Item 8. Financial Information — 8.A. Consolidated Statements and Other Financial Information — Dividend Policy.”
Although we maintain a cash dividend policy, the determination to make dividend distributions in any particular year will be made at the discretion of our board of directors based upon factors such as future operations and earnings, cash flow, financial conditions, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the board of directors may deem relevant. Our profits may be reinvested by our subsidiaries and the VIEs into their PRC operations. As of December 31, 2024, the total amount of undistributed profits from the PRC subsidiaries and the VIEs for which no withholding tax had been accrued was RMB17,453 million (US$2,391 million), and the unrecognized tax liabilities were RMB1,745 million (US$239 million). See “Item 8