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Tencent Holding Ltd. (TCEHY) Q1 2021 Earnings Call Transcript

By Motley Fool Transcribing - May 20, 2021 at 1:30PM

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TCEHY earnings call for the period ending March 31, 2021.

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Tencent Holding Ltd. (TCEHY -0.23%)
Q1 2021 Earnings Call
May 20, 2021, 8:00 a.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Good day, and thank you for standing by. Welcome to Tencent Holdings Limited 2021 first-quarter results announcement conference call. [Operator instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded.

[Operator instructions] Now, I would like to hand the conference over to Ms. Wendy Huang from Tencent IR team. Thank you. Please go ahead, ma'am.

Wendy Huang -- Investor Relations Officer

Thank you, Amber. Good evening. Welcome to our 2021 first-quarter results conference call. Before we start the presentation, we would like to remind you that it includes forward-looking statements which are underlined by a number of risks and uncertainties and it may not be realized in the future for various reasons.

Information about general market conditions is coming from a variety of sources outside of Tencent. This presentation also contains some unaudited and non-IFRS financial measures that should be considered in addition to, but not as a substitute for measures of the company's financial performance prepared in accordance with IFRS. For a detailed discussion of risk factors and non-IFRS measures, please refer to our disclosure documents on the IR section of our website. Let me introduce the management team on the call tonight.

Our chairman and CEO, Pony Ma, will kick off with a short overview. President Martin Lau will discuss strategy reviews. Chief strategy officer, James Mitchell, will speak to business review. And then chief financial officer, John Lo, will conclude with financial discussion before we open the floor for questions.

I will now turn the call over to Pony.

Pony Ma -- Chairman and Chief Executive Officer

Thank you, Wendy. Good evening. Thanks, everyone, for joining us. During the first quarter, we achieved solid growth across our businesses, and in particular, in our fintech and business services and advertising revenue streams.

We are also stepping up investment in outlets, including business services and enterprise software, high production value games, and short-form video, which we'll discuss in more details in the strategy section. Now, let me go through the headline financial numbers for the quarter. Total revenue was RMB 135 billion, up 25% year on year and 1% quarter on quarter. Gross profit was RMB 63 billion, up 19% year on year and 6% quarter on quarter.

Non-IFRS operating profit was RMB 43 billion, up 20% year on year and 12% quarter on quarter. Non-IFRS net profit attributable to equity holders was RMB 33 billion, up 22% year on year and stable quarter on quarter. For our key services, despite intense competition across the China internet industry, we generally became -- expand our first-place position in activities, including social, games, long-form video, news, music, literature, payment, and mobile utilities. And we believe we gained market share in cloud services.

Combined MAU of Weixin and WeChat was 1.24 billion. Mobile devices MAU of QQ was 606 million. Martin and James will discuss our future strategy and progress across some of these activities in detail. And I'll it over to Martin for the strategy review.

Martin Lau -- President

Thank you, Pony, and good evening and good morning to everybody. Today, I will walk you through few strategic investment areas that we believe will support our long-term growth. In the course of 2020, we saw exciting new market opportunities emerging. Now, first, business is accelerating their movement online and industry is speeding up the digitization across the value chains.

Second, the audience for games structurally expanded due to the stay-at-home period. We believe emerging genres and advanced technologies will drive further game audience growth. Third, as the short video market matures, we believe users will seek more diverse and nutritious short-form video content. At the same time, the entire internet industry is undergoing a new round of additional investment in which investors and companies are prioritizing growth over profit.

We can see this in our own investee portfolio where heavy investments are made in areas such as community group buy, electric vehicles, and user acquisition. On the other hand, these initiatives boost that market valuation with the market value of our stakes in listed investees exceeding $200 billion as of quarter-end. On the other hand, our top five loss-making associates reduced our non-IFRS net profit by 7% in the first quarter. As for Tencent, we see opportunities to proactively invest in several areas where we can be an early mover and a shaper of industry evolution rather than playing catch up later.

First of all, business services. We're adding headcount and infrastructure to assist the digitization of various industries. Second, games. We're investing in high-production-value games with global appeal.

Third, short-form video content. We're cultivating multiple ecosystems to meet users' emerging needs for more interesting content. Fourth, sustainable social value. We announced the establishment of new SSV Org to bring technology benefits to the society.

Funding these investments will absorb a portion of our incremental profits from existing businesses for 2021. We expect such investment would deliver very high return over the longer run. In the next few slides, I would discuss the specific opportunities, the progress, and achievements we have made so far, and the initiatives that we are funding going forward. Now, let's start with business services.

Since we upgrade our strategy to embrace industrial Internet in 2018, we've seen product and service providers and customers aspiring to optimize their connection with consumers digitally. Various industries are deepening digitalization across customer engagement, operations, production, and supply chain, particularly after COVID-19. Meanwhile, enterprises wildly -- widely adopted online collaboration tools internally to improve their efficiency. We've achieved some structural strength in this area.

For example, on the scale front, we believe that across our internal usage and external customers, our cloud servers now run the largest number of servers in China. And on the platform and software front, we provide the leading CRM, collaboration, and productivity solutions in the market where those services are highly valued by enterprises. After a period of disruption due to COVID-19, our cloud services move back to an above-industry revenue growth rate in the first quarter. To double down on these trends, we're increasing headcounts for product development to enhance our service offering and also expanding our sales team to facilitate client acquisitions and service.

We're strengthening the capabilities and interconnections of our productivity SaaS products and security software to extend their leadership positions. At the same time, we're growing the networks of independent software vendors and SaaS partners through strategic cooperations and investments. We are also deepening our smart industry strategy by expanding coverage and enhancing upsell and cross-sell competencies in key verticals such as healthcare, retail, education, and transportation. Turning into games.

We believe the global industry opportunities and the resources required to capture the opportunities are larger than ever. First, mobile devices are extending the total addressable market for games, which was further boosted by the stay-at-home period. We believe emerging genres and development with developers will further expand the market. Second, game players are becoming more discerning and quality sensitive.

High-production value, innovative, and cross-platform games can attract and retain large audiences to an extent not previously possible. Thirdly, Chinese game developers are attaining early success in global markets. We believe we're already in the early stages of capitalizing on these trends. Our high-DAU franchise games such as Honour of Kings, PUBG Mobile, Peacekeeper Elite, and League of Legends uphold our leadership in major genres.

Each one of them consistently deliver large loyal audiences, as well as solid monetization. On top of that, our internal and investee studios are working on a large and diverse game pipeline. International revenues now also account for a substantial portion of our game revenues, and titles such as PUBG Mobile, League of Legends, and Valorant have achieved sustained player recognition globally. Looking forward, we aspire to lead the industry and are committing the necessary additional resources.

We are making long-term investments in developing large-scale high-production value games to attract players globally. We're funding development of innovative games in emerging verticals. We're building up IP franchises suitable for games and expanding across media. We'll step up marketing expenditures and attract a bigger audience to new games.

And we are investing in emerging areas such as our cloud gaming services. Next, we'll talk about our investment in the short-form video arena. China consumers have shown great appetite for watching short-form video, and we are investing to address how we see that appetite evolving going forward. First, we're positioning video accounts as a new infrastructure in Weixin, connecting users with real-life content and bridging high-quality content creators with consumers.

We'll provide resources, as well as handy creation and monetization tools, to attract diverse content creators, thus incubating a unique content portfolio. We optimized technology to unlock the potential of social plus algorithmic recommendations, leveraging the strengths to increase exposure of knowledge-based content. Besides, we're adding servers and bandwidth to support the solid organic growth in video accounts. We're confident that these investments will benefit the ecosystem and engage greater audience over time.

Second, we recently merged Tencent Video and WeiShi, our short-form video app in PCG, seeking to bring integrated viewing experiences to users and rich content offerings, as well as sharpen algorithmic recommendation. Along with this internal business aug -- reorg, we are escalating self-commission production to further expand our IP content library, which can facilitate creation of more video clips about creating a network and better serve users' emerging needs for high-quality short content. We'll also leverage our capabilities acquired through building up WeiShi to empower our long-form video business in terms of content creation, recommendation, user acquisition, and operations. Finally, we announced our aspiration to promote sustainable innovations for social value.

We seek to bring sustainable benefits and value to society by leveraging our technology and products and to elevate the importance of sustainable social value when making decisions in all our products and services. By integrating our existing corporate social responsibility and charitable activities into a new Sustainable Social Value Organization, SSV Org, we'll create a dedicated team to deploy social value initiatives in a professional and entrepreneurial way. We'll incubate projects in various areas such as basic science, education, innovation, rural revitalization, carbon neutrality, and food energy and water provision. Where appropriate, we'll link these projects with our existing businesses.

In addition to making charitable donations, we seek to promote the development of self-sustainable operations which can create new value for related industries and for society. Throughout the process, we'll pursue long-term social value rather than economic profits. We are committing an initial capital of RMB 50 billion to be funded by our investment gains. We believe that our strategic upgrade and the new initiatives will allow us to make an even more positive impact to the society and usher in a new phase of development for Tencent.

Now, with that, I'll pass it to James to talk about our business review.

James Mitchell -- Chief Strategy Officer

Thank you very much, Martin. For the first quarter of 2021, our total revenue grew 25% year on year. VAS represents 54% of our revenue, within which, games were 32% and social networks 22%. Online advertising was 16%, and fintech and business services represented 29% of total revenue.

For value-added services, segment revenue was RMB 72 billion, up 16% year on year and up 8% quarter on quarter. Social networks revenue increased 15% year on year to RMB 29 billion on moderate growth and digital content subscriptions and in-game items sales. Total VAS subscriptions increased 14% year on year to 226 million. Video subscriptions grew 12% to 125 million, benefiting from adaptation of IP such as the Land of Warriors into animated and live-action drama series.

Music subscriptions expanded 43% to 61 million due to better content, effective marketing campaigns, and an improved retention rate. Games revenue grew 17% year on year to RMB 44 billion against the high base stay-at-home period, which started in China in the first quarter of 2020. Growth was primarily driven by mobile games in China and by mobile and PC games in international markets. Sequentially, game revenue increased 12% due to Chinese New Year seasonality.

For mobile games, total revenue increased 19% year on year to RMB 41 billion, benefiting from robust performance of existing games such as Honour of Kings, PUBG Mobile, and Peacekeeper Elite, as well as contributions from new games such as Moonlight Blade for mobile and Call of Duty Mobile in China. For PC client games, revenue increased 1% year on year to RMB 12 billion as contributions from Valorant and Warframe, as well as growth from CrossFire, offset a decline in Dungeon and Fighter. For Weixin, we provided more support for our partners, and are together building a vibrant content and service ecosystem. On the content front, we attract and cultivate video accounts creators by providing customized onboarding services, favorable traffic allocation to build their initial audiences, and training in video production best practices.

On the services front, we provided capabilities to increase penetration of Mini Programs, particularly among our SMEs. Our low-code development platform enables smaller businesses to create Mini Programs in a more cost-effective way. And we launched new tools to assist system integrators. The number of active Mini Programs served by system integrators more than tripled year on year.

For QQ, we are leveraging technology to better integrate social and content consumption experiences such as seamless connection between instant messaging and games. Users can team up with QQ friends to start a multiplayer game battle with one click, and QQ Mini Programs facilitate users staying up to date with in-game events. Looking forward, QQ's new leadership team will seek to upgrade the products, technology operations, and content to better serve the social and entertainment needs of younger users. Turning to games.

Aggregate user engagements and user spending increased year on year despite the high 1Q 2020 comparison period. We released Honour of Kings' biggest update in January to improve graphics and game experiences and then launched an appealing marketing campaign with top-tier skins during the Chinese New Year, which drove the game's DUA and tank users to record high levels in February. We reduced the application file size of PUBG Mobile and enhanced our local market operating capabilities, boosting PUBG Mobile's DAU in countries, including Turkey, Egypt, and Russia. For League of Legends, we distributed bigger and better Lunar Revel content for the core game mode, as well as for Teamfight Tactics, contributing to higher global revenue year on year.

Beyond these large audience games, we're also cultivating emerging genres. For example, new releases Komori Life and the Walnut Diary ranked among China's top 10 life simulation mobile games by DAU in April. Our pipeline includes action-packed arena, roleplaying, simulation, strategy, and survival games. For China, many of these new games are adapted from popular existing game and literature IPs.

Internationally, we expect our substantial prior investments in best-in-class PC consular and mobile studios to begin contributing a range of genre innovating games in the quarters to come. Moving to online advertising. Total revenue was RMB 22 billion in the quarter, up 23% year on year, assisted by three factors beyond our ongoing product innovation and ad tech improvements. First, higher ad spend from the e-commerce and education verticals.

Second, FMCG and automobile-related advertising revenue benefiting from economic growth. And third, fourth-quarter consolidation of the Bitauto automobile vertical site. We enhanced the transaction capabilities of our ad properties and customized marketing solutions for key verticals, including games, returns, and automobiles, delivering higher ROI for advertisers. Looking forward, IDFA deprecation on iOS devices appears to have a limited impact on the China ad market so far while other potential uncertainties include possible regulatory headwinds for K-12 education and potential delays to the video content release schedule.

Our social and others advertising revenue expand 27% year on year, to RMB 19 billion driven by moments in the mobile ad network, within which moments impressions and revenue increased as we added to inventory and as more advertisers adopted many programs as landing pages. Our mobile ad network revenue grew rapidly reflecting increased video ad inventories primarily within games, online reading, and school applications. Our media advertising revenue rose 7% year on year, to RMB 3 billion largely due to increased ad inventory and the eCPM within our music apps. During the quarter, we released several popular self-commissioned variety shows including Chuang 2021 and Roast: Season 5, driving our sponsorship to add revenue.

Looking at fintech and business services segment revenue with RMB 39 billion, up 47% year on year, and up 1% quarter on quarter. Within fintech services the year-on-year revenue growth rate was higher than in prior quarters, benefiting from an easy-base period to stay-at-home activity reduced offline consumption in Q1 2020. Our payment business is also structurally benefiting from the broader digitalization of consumer habits and of the economy. Payment volume and revenue increased slightly quarter on quarter despite seasonally reduced e-commerce activity.

Offline spending picked up as many people stayed in the cities in which they work during the Chinese New Year holiday, which boosted local spending on retail and dining services. For business services, revenue grew at a healthy rate year on year benefiting from resumed project deployment and robust demand from industries including enterprise software and online video provision. Increased customer uptake of our security communication and CRM solutions drove notable growth in our PaaS and SaaS revenue, both absolutely and its proportion of our overall business services revenue. Our cloud marketplace now includes thousands of partners software-as-a-service products.

We launched Enterprise app connected with unified log-in accounts and data flows across different SaaS products, allowing SaaS providers to develop and deliver their products more efficiently while facilitating Enterprise clients to better integrate multiple software solutions. And with that, I'll pass to John to discuss the financials.

John Lo -- Chief Financial Officer

Thank you, James. For the first quarter of 2021, total revenue was RMB 135.3 billion, up 25% year on year, or 1% quarter on quarter. Gross profit was RMB 62.6 billion, up 19% year on year, or 6% quarter on quarter. Net other gains were RMB 19.5 billion, up 384% year on year or down 41% quarter on quarter.

This mainly comprised of IFRS, such as items including fair value gains, reflecting increased valuations of the investments -- the investee companies and verticals, such as fintech and social media, as well as net gains on deemed disposal and disposal of certain investee companies. Operating profit was RMB 56.3 billion, up 51% year on year, or down 12% quarter on quarter. Net finance costs were RMB 1.4 billion, down 19% year on year, or up 39% quarter on quarter. The year-on-year decrease was mainly driven by a reduced interest rate as we capture fair value interest in diamonds in our treasury exercise.

The quarter-on-quarter decrease was primarily caused driven by foreign exchange gains this quarter, while we recorded forex loss a quarter ago. Share profit of associate and joint ventures was RMB 1.3 billion compared to the share of losses for the first quarter of last year, as we benefited from non-IFRS adjustment items including a nonrecurring fair value gain on the investment of an associate, as well as improved performance of certain associates. On a non-IFRS basis, we recorded a share of profit of RMB 0.5 billion for the first quarter of 2021, compared to RMB 164 million a year ago. Income tax expense was RMB 7.2 billion this quarter.

The effective tax rate for the quarter was 12.9%. IFRS net profit attributable to equity holders was RMB 47.8 billion, up 55% year on year, or down 19% quarter on quarter. Diluted EPS was RMB 4.917, up 64% quarter -- year on year, or down 20% quarter on quarter. Now, I'll share with you non-IFRS financial figures.

For the first quarter, operating profit was RMB 42.8 billion, up 20% year on year, or 12% quarter on quarter. Net profit after NCI was RMB 23.1 billion, up 22% year on year or largely stable quarter on quarter. Diluted EPS was RMB 3.415, up 21% year on year or largely stable quarter on quarter. Moving on to gross margins.

The overall gross margin was 46.3%, down 2.6% each point year on year, or up 2.3% each point quarter on quarter. Analyzed by segment. Gross margin for VAS was 55.1%, down 3.9% each point year on year, or up 3.6% each point quarter on quarter. The year-on-year decline was mainly due to number one, the increased content cost for more airing of dramas and the variety shows versus the year ago.

Number two, as revenue mix shift from higher-margin PC client games and QQ subscriptions to lower-margin digital content services. The sequential increase relatively to -- from revenue mix shift toward higher-margin mobile games amid favorable year-on-year gain. Gross margin for Online Advertising was 45.1%, down 4.1 percentage point year on year and 8.2 percentage points quarter on quarter. The year-on-year decrease was mainly due to higher revenue contributions from mobile and network businesses, which carries lower margins sequentially.

The decline mainly reflected seasonality and increase the content cost for more airing of drama series and sports events. Gross margins for fintech and business services was 32.3%, up 4.4% each point year on year and 3.8% each point quarter on quarter. Both year-on-year and quarter-on-quarter margin growth was mainly due to revenue mix shift toward merchant payment and wealth management services, which carry relatively higher profit margins. In addition, the operational efficiency of business services hub on our sequential margin growth.

On operating expenses, selling and marketing expenses were RMB 8.5 billion, up 21% year on year, or down 15% quarter on quarter. The year-on-year increase was mainly due to increased marketing spending, particularly on business services and games, and the consolidation of new series such as Bitauto, as well as Huya stocks and welfare expenses. Sequentially, marketing expense was slower because of seasonality. As a percentage of revenues, selling and marketing expenses were 6.3% of revenues this April when compared to the first quarter of 2020.

G&A expenses were RMB 19 billion, up 34% year on year, or down 4% quarter on quarter. The year-on-year increase mainly reflected greater R&D costs. The quarter-on-quarter decline was mainly driven by seasonally lower office travel and entertainment expenses. Within G&A, R&D expenses were RMB 11.3 billion, up 41% year on year, and 1% quarter on quarter.

G&A and R&D represented 14% and 8.4% of revenues, respectively. At the quarter-end, we had approximately 89,000 employees, an increase of 39% year on year, and 4% quarter on quarter. Let's take a look at the operating margin ratios. For the first quarter of 2021, the non-IFRS operating margin was 31.6%, down 1.3 percentage points year on year, or up 3.1 percentage points quarter on quarter.

Non-IFRS net margin was 25.5%, largely stable year on year and quarter on quarter. Finally, I'll share some key financial metrics for the quarter. Total capex was RMB 7.7 billion, an increase of 26% year on year, or a decrease of 20% quarter on quarter. Operating capex increased grew 20% year on year to RMB 6.6 billion due to on servers and network equipment to augment our business growth.

Nonoperating capex increased 69% year on year to RMB 1.1 billion mainly driven by increased expenditure on cloud, SaaS expenses, and office properties. Free cash flow for the quarter was RMB 33.2 billion, down 15% year on year, or up 20% quarter on quarter. Net cash position declines sequentially to RMB 5.6 billion mainly due to net cash outflow for M&A activities, partially offset by free cash flow generation. The fair value of our shareholdings in listed investee companies, excluding subsidiaries, was approximately RMB 1.4 trillion or US$207 billion at the end of the first quarter.

Thank you. We'll now open the floor for questions.

Wendy Huang -- Investor Relations Officer

Operator, we will take one main question up to one follow-up question each time. Please invite the first question.

Questions & Answers:


Thank you. [Operator instructions] Our first question comes from the line of Alicia Yap from Citigroup. Please go ahead.

Alicia Yap -- Citigroup -- Analyst

Hi. Good evening, management. Thanks for taking my questions. Congrats on the solid results.

I have two questions. The first one is regarding your comment about stepping up the investment in game development. When you say the large scale and high production value games, do you plan to invest in games that will turn into strong global IP that, you know, the gamers will play and maybe remember for their lifetime? Or does that mean we could take multiple years of development before we see any final product? And is this rationale because of we are seeing growing gamers traction in markets such as India, LatAm, EMEA, or even in the U.S. that we locked in to penetrate further that we can leverage our experience in mobile game development to grow our global share? The second question is on the cloud business.

We are seeing or hearing from peers, you know, some a little bit slow down the industry. So is Tencent Cloud also experience industry transition? Where there existing infrastructure cloud customers, which is already quite sizable and maybe facing industry slowdown and making some penetration effort into a new industry vertical? Or are -- is it fair to say we actually are already ambition this transition better and already started to move more proactively in strengthening these higher-margin soft capabilities that we actually could start to see the cloud revenue to further reaccelerate in the coming quarters? Thank you.

James Mitchell -- Chief Strategy Officer

Alicia, thank you for the questions and I'll take a shot at both of them although Martin will likely supplement. So the short answer to the first question is yes. We absolutely would aspire to make gamers and players enjoy and ideally play for life. But of course, you know, it's easier to express that aspiration than realize that aspiration.

Now, you're right to say that creating those in lifelong game experiences requires many years of game development. But this is a trend that we've identified many years ago and we have a number of products that have indeed already been in development for many years and some of those are games that we're creating in China in our big internal studios like TiMi and Quantum and more fun in Aurora and some of those games that we're creating outside China or at studios, which we invest in and around the world. And you know, over the coming quarters and years, we hope to bring some of those big budget-long production cycle games to market. Now, as to why we're focused on this now and what changes now versus the past, we are indeed seeing that the global audience for games has grown both before, during, and after COVID.

And we're seeing particular growth in emerging markets such as the ones you highlight but also in developed markets, and we're also seeing that game players are increasingly willing to form long term relationships with games that they particularly enjoy such as the League of Legends or Fortnite or in Honour of Kings, which have very high retention rates and gamers, even if they churn, they come back to and enjoy again. You know, on our side, while historically our focus was was primarily on the China market, as you know, in recent quarters we've had some hits globally that were developed in China including PUBG Mobile, including Call of Duty Mobile, all of which gives us more confidence to step up our rate of investment. And step up our rate of investment means fund bigger, better games, if necessary, for longer periods of time. It also means fund more experimental games.

It also means investing more in game marketing and game publishing capabilities. And then finally, it means investing in frontier technologies such as cloud-based gaming that will further grow the game industry in the future. So that's on your game question. With regards to your cloud question, I think that we don't necessarily see a sudden transition in the industry this year versus previous years rather our belief is that when you're in the cloud business, it is inevitable that if you're renting infrastructure to very big companies, then those big companies will use that negotiating power to protect their own economics.

And as a result, the path to long-term economic returns in the cloud is not to get big fast or infrastructure but actually to cultivate a platform as a service and software as a service, and that's something that we've been doing now for several years. Platform as a service, in particular, is a substantial percentage of our total cloud revenues now. You know, that's the simple and the underlying reason why we believe that we're able to outgrow the industry in the first quarter this year.

Martin Lau -- President

Just one point to add. On the gaming side, I think we emphasize that it's like a new creation of IP users many years before you can see even in private. I think if you look at our recent pipeline of games, which we have announced of more than 40 of them, I think, you know, it's a combination of some of our original APIs, which would take a very long time to develop. For existing APIs that we're going to take existing assets, it's pretty proven gameplay and we will add our innovation for mobile, and then we've developed it for launch.

And then there are also some smaller trial titles, right? The image titles, which would have multiple iterations, probably that there will be developed and released within a short period time and then iterated over time in order to make them bigger. So it's a combination of these different types of titles that constitute a pipeline.


Thank you. Our next question comes from William Packer from BNP Paribas. Please go ahead.

William Packer -- Exane BNP Paribas -- Analyst

Hi, management. Congrats on the strong numbers and thanks for taking my questions. My first question is in your update today, you presented investment plans to exploit the growth opportunities for the future. In Q1 '21, you invested and delivered the 25% net profit drop through on your 25% revenue growth.

Should we think of Q1 as a relevant benchmark for the rest of the year? And my second question is around regulation. The news flow has continued to be intense. Last quarter, you provided a helpful update on the regulation of fintech and your minority investments. Is there any incremental update to share today? Thank you.

Martin Lau -- President

In terms of the incremental investment plan, I would not say the first quarter is the right benchmark. I think our investment plans actually stepping up from the first-quarter level. So if you look at the first-quarter results, I would say the benchmark is that our non-IFRS profit grew by 22% year on year. And what we're seeing is that we're going to be investing a portion of the incremental profit into new areas.

And so, that means it's somewhere between 0% and 22% from a quantitative basis. I think, you know, so, that's the quantification. Now, in terms of the regulatory news, well, I think, you know, the most significant way is, basically, after the first-quarter results, there was a meeting in which the financial regulator asked 15 fintech companies to have a meeting, and also announced certain principles as well as the fintech companies to have an internal review of their own business and practices. And I think, you know, the principle was largely public, right, you know, and they're largely focused on all businesses have to have to be conducted through licensed entities, and they asked for transparency.

And at the same time, I think, you know, there's quite a bit of focus on making sure that there's not going to be a systemic risk. And my understanding is it's quite focused on the size of the lending business and making sure that there's no overlending or overborrowing by consumers, right, you know. And toward that front, I would say as we have emphasized in our last conference call, we are very focused and compliant, we're very focused on risk management, we're very self-restraint in terms of the size of our non-payment financial products, especially on the lending side. So, when we look into, you know, the internal review and when we're looking to what are the things that need to be done in order to make sure that we are compliant with the spirit of the regulators, right, you know.

I think, you know, it's actually relatively manageable. So, that's sort of the update I have on the regulatory side.


Thank you. Our next question comes from John Choi from Daiwa Capital Markets. Please ask your question.

John Choi -- Daiwa Capital Markets -- Analyst

Good evening and thank you for taking my question. I have two questions here. So, on the reinvesting of profits, I think Martin just mentioned that maybe by 0% to 20%. But if you look at it, you know, could you kind of walk us through like what are going to be the pecking order of the three that you guys did mention of business services and games, and not sure for video.

And also, is it going to be a combination of your equity investments or through actual investment in operation that will have a P&L impact. And that's my first question. And the second question is a follow-up to your game business. I think, you know, it's interesting to see that we're seeing a lot of the genre games on, you know, that Tencent probably has been strong exposure.

But also at the same time, there are new genres like metaverse and, etc., that, you know, Tencent doesn't have that much exposure in, you know, your market. So, how do you see the opportunities here and what kind of relevant investments and, you know, strategic decision that you have to make in order to take advantage of these new genres emerging throughout the world? Thank you.

James Mitchell -- Chief Strategy Officer

So, why don't I start on the second question? You know, there are continuing new genres emerging and, you know, some of them, you know, are best left to our partners, our investee companies to address. But, you know, others are genres that, you know, we think we can bring some value to the table, bring some innovation to users. And therefore, you know, we will address ourselves. Now, I wouldn't say that metaverse is a genre.

Metaverse is more of a -- an overarching opportunity in which different kinds of games are played within a single set of social graphs and software suites. So, you know, if you look at Roblox then, you know, Roblox is arguably a metaverse but for younger gamers. But over time, as graphical fidelity improves, then we believe it's highly probable that you'll see similar metaverses emerge that are consistent with the demands and expectations of older users. And, you know, that's a wide-open field at the moment.

You know, no one has realized that vision yet, although some people are closer than others. And, you know, we certainly believe that we're in a good position to be one of the companies that realize that vision, given our expertise at creating and operating games, given our history of facilitating social interactions, and also given our cloud infrastructure at the back end. Because, you know, the metaverse will be very infrastructure-intensive. So, I think that's on the games question.

In terms of the reinvestments question, then, you know, I'll let Martin speak to it, but I would just say that from a -- when we talk about reinvestment in this situation, we're talking about owned and operated businesses, primarily. You know, I think that in each of these three verticals, we've already been, you know, active for a number of years in terms of, you know, investing in successful game studios, both in China and globally in terms of investing in successful short-video companies such as, you know, Kuaishou in China and investing in a very wide range now of early stage enterprise software companies.

Martin Lau -- President

And in terms of the areas of investment, you know, I would say, you know, mostly as James talked about, it's on the operating side. So, a big part of it is actually sort of people right, you know? So, these are engineers that we're going to hire additionally to create the products, perfect the products, and develop better services. And some of these new employees are higher-paid because, you know, they are essentially experts and professionals in their respective areas. And, you know, to a lesser extent, it will be bandwidth and infrastructure costs, and to some extent, maybe delayed monetization on the videos app, for example, right, you know? And so, these are sort, you know, the investments that we're talking about, which are actually are having a bottom-line impact.

And in terms of the magnitude, I would say business services, games, and video in that pecking order. And the nature is slightly different. Business services would actually take a longer time and it's a, you know, larger strategy of building scale first. And then over time, monetizing games, basically, you know, can monetize relatively quickly once you can launch the game and achieve success.

But the investment was actually in the development phase in which there is no revenue, but then you have incurred cost. Versus video as I said, right, you know? There's a continuous increase in terms of number of people in order for us to improve the product, improve the operations, improve the tools. And at the same time, in some cases, as some extent of delayed monetization on the advertising front.


Thank you. Our next question comes from Han Joon Kim from Macquarie. Please go ahead.

Han Joon Kim -- Macquarie -- Analyst

Great. Thank you for your time today. I have a two-part question on advertisement. You guys have talked about a lot of different things in conferences and events of what's going on there.

I was wondering if you could kind of help us repackage that into sort of ad inventory growth versus kind of eCPM growth, and kind of where we're seeing the trajectory therein for that. And that leads into the second part of that question which is as we grow our videolization, and a lot of the industry is going toward, you know, video. So, in theory, I think the ad inventory for ad video in the ad market does increase. How does that sort of impact your market rates, eCPM rates, and sort your ad pricing, and can go from here? Thank you.

John Lo -- Chief Financial Officer

Thank you for the question, Han Joon. Actually, it wasn't completely clear, so I apologize if we misheard sections of it. But, you know, we'll try to answer. So, on the first part around inventory versus pricing growth, then, you know, both are increasing.

I think on the inventory side, sometimes the outside world oversimplifies that into looking at what's happening with Weixin Moments. In reality, Weixin Moments is a pretty small fraction of the inventory of the number of data daily impressions we bring to bear. And, you know, our ad network, for example, is a much bigger source of raw impressions. And our ad network continues to grow our impressions quite quickly as we see, you know, we're trying to internationally expand and diversify.

So, there's, you know, more and more media owners join our ad network. So, you know, ad inventory expanding both for internal reasons like unlocking more inventory in Weixin Moments, as well as sort of more market-driven reasons, such as the growth of our ad network. And then ECPM growth, you know, I think that over time, given increasing appetite for demand, it's natural that pricing trend sideways upwards, but there was a disruption period when there was a sort of supply shock from the short video companies in 2019. But that's been somewhat digested by the industry as a whole now.

And in general, what we see is the pricing is in a flattish for nonvideo and then increases as videolization occurs. And in terms of videolization and the eCPMs around video, in general, as you would expect, video eCPMs are a high, but there are an interesting sort of discrepancies between the different video formats. So, actually, the higher eCPM is often the promotional video ads within the ad networks. And those would typically be for game companies, education companies, perhaps e-commerce companies.

And, you know, there you could be at, you know, RMB 40-plus in revenue per thousand impressions. So -- and then the short video eCPMs are also quite high and are fairly stable just because there's so much short video inventory now in China. And then interestingly, the long-form video eCPMs are actually very low. And so, you know, whereas in the rest of the world, you would expect that, you know, let's say, Hulu eCPMs should be higher than YouTube eCPMs.

In China, it's the other way around and the eCPMs for, you know, drama series and movies, and so forth are about half of that for the eCPMs for short video. And, you know, I think that's because advertisers currently find it easier to create, you know, five-second commercials that are suitable for short video and 15-second commercials that are suitable for long video. And also, because users have a higher propensity to click through ads within a short video site where they're constantly clicking through short videos they do and don't like, versus a lower propensity to click through ads on a long video site, which is more of a lean-back experience. But it's a sort of challenge for the China industry as a whole in that it's, you know, forcing monetization, and therefore, investment toward a short video at the expense of long video.

Eventually, it will probably sort of mean revert as consumers and advertisers recognize the distinctive, professionally generated quality of long-form video. But that process is neither happening today. So, anyway, overall, videolization results in higher eCPMs, which is good for the industry and good for us within the industry.


Great. Thank you. Our next question comes from Eddie Leung from Bank of America Merrill Lynch. Please go ahead.

Eddie Leung -- Bank of America Merrill Lynch -- Analyst

Good evening. Thank you for taking my questions. Just a follow-up to Alicia and Han Joon Kim's questions on games. I understood -- I understand, James, your point about developing large-scale and high-production-value games, which could advance on long term.

But, for example, you mentioned that there have been some concerns of other Chinese studios in overseas markets recently. But when we look at quite a number of them, are actually not those traditional blockbuster games, right? Now, looking at let's say card games, make-over games, costume-changing games. So, it seems like they are actually quite higher-quality kind of games, but not necessarily those like large-scale and high-production-value games. You know, but that's only my own interpretation.

So, I'm just wondering if you could share your thought on this one, you know, between your investment strategy and what we have observed recently. And then secondly just a different accounting question on the sustainable social value organization. I'm wondering about the timing of the funding. Will it be funded in full within a short period of time or over a long period of time? And in terms of accounting group, we treat it as a counter item to the investment gains or to the -- under other expenses? Thank you.

John Lo -- Chief Financial Officer

Eddie, so, you know, you raised a good question on game industry trends. And, you know, if you take a step back, the game industry globally is a really big industry. It's, you know, about $150 billion a year, which means it's bigger than, you know, movies and music, and literature, and so forth put together. And, you know, when an industry is that big, then you can actually have, you know, different and apparently contradictory trends playing out at the same time.

You know, if you look at linear video, then, you know, on the one hand, there's an explosion in short-video consumption globally. But on the other hand, there's an explosion in the number of people paying for Netflix and Disney Plus, and Paramount plus, and HBO plus globally. So, those are, you know, sort of two apparently contradictory trends. People are watching more ad-funded short video, they're also watching more subscription-funded long video.

But, you know, the industry is big enough to accommodate both. And, you know, I think the same thing is true in the game industry that there is a very clear trend toward, you know, very casual games where, you know, the innovation is around quirky gameplay and, you know, where these games are able to onboard large numbers of users very quickly. And the challenge for these games will be establishing competitive modes and also retaining users over the -- over the, you know, the much longer term. And, you know, that is a trend, or as you say, a number of sort of casual Chinese game developers are now doing very well.

On the other hand, there's also a trend, you know, high-production-value games often made by studios who have been, you know, focused on these games for, you know, 10 years or more. Often studios with, you know, 1,000-plus employees to really, you know, catch the attention of the global audience in a way that wasn't possible before. And, you know, there, I'm thinking about a game like Genshin Impact, where miHoYo has been making this kind of game for 10 years. It has over 1,000 employees, it spent many years on the game and thinking about games like our own, you know, PUBG Mobile and Call of Duty Mobile, which exhibits similar characteristics.

So, you know, I think that the industry is big enough that both those trends are playing out and, you know, there are certain studios at Tencent that are more focused on the first approach of the more casual, quirky, innovative games. And there are other studios in Tencent that are more focused on high-production value. But when we talk about our desire to step up our rate of investment, then we're referring primarily to the second group, you know, to the desire to take games that we've already conceptualized or have already begun development, and really double down on the development process, and increase development resources, lengthen the development cycle, and then invest heavily in the marketing when we launch the game. So, the -- we give the games the best possible shot to global audience when we do release them.

Pony Ma -- Chairman and Chief Executive Officer

Yeah. While we are still in the midst of working on the proper accounting treatment with our auditors, I believe the treatment will be similar to that of donation, that is, you know, expands upon contribution to a separate pool. However, it hasn't been finalized yet. The other point I would like is, you know, it's most likely to be treated as a non-IFRS adjustment as it's funding sort of basically our investment gain, which Martin has talked about earlier.

And those investment gains also recorded a non-IFRS adjustment. All this, you know, type of contribution will be captured in the other gains in our financial statements. And in terms of, you know, the funding timing, I think once the infrastructure has been set up, we will -- account should be with the first set of funding into the pool. And I think, usually, we might fund one -- once or twice, you know, in a year in respect of the industry initiatives.


Great. Thank you. Our next question comes from Alex Yao from JPMorgan. Please ask your question.

Alex Yao -- JPMorgan Chase & Co. -- Analyst

Thank you, operator, and good evening, management. Thank you for taking my question. The first one is to follow up the question on your investment strategy this year. You guys have been investing consistently for future growth in the past several years, particularly for the three years that you plan to step up investments.

All this has been around for quite some time. What make you to decide to further step up the investment in this year? What are the new opportunities and the challenges you are seeing that we are not aware of? And then the second question is regarding your -- the social organization you just established. We understand that you guys will further pursue social responsibility. As a public company, how do you plan to align value creation to the society and the value creation to the shareholder? Thank you.

Martin Lau -- President

So Alex, in terms of the stepped-up investment, I think, you know, it's a bit of both, right? You know, the most important driver is that we have seen an acceleration of market trends as we have detailed in our strategy section, which include expanding business around the businesses moving online. And we have seen an expansion in terms of the game users, and we also see the next stage of the short video content growth. So I think, you know, that's the main driver of our decision to step up because of COVID. Because of new trends emerging quickly, you know, we want to put in additional resources so that we can actually stay ahead of the curve.

Part of that is also the fact that the industry is actually moving faster ahead, right? So if you look at this history of Tencent, we have always tried to stay ahead of the curve, invest ahead of the curve, and be a shaper in terms of the industry trend. But if the entire industry is actually moving faster, then we actually sort of have to step up that gas pedal in order to stay even more ahead of the others. So I think, you know, that's sort of the secondary reason in terms of why we are stepping up the overall investment. Now in terms of social responsibility, I'll answer it from a -- partly from a philosophical perspective, right? You know, running a company, building a company is like building a person, right? You know, so, you know, you try to do the right things.

And over time, you believe that, you know, good things will happen to that person. You don't really sort of, you know, every step of your way calculate what is the individual gain in some of the movement that you make. So I think, you know, that's sort of, you know, our overall belief when you build up an organization, if you do the right things, good things will happen. On a more granular basis, I would say, you know, if we actually sort of leverage our technology and leverage our products to deliver bigger social good, I think, you know, overall, we'll be better received by our users, or by our customers, by the government, and by our employees.

And when that happen, I think, you know, it's going to be good for the shareholders over the long run.


Thank you. Our next question comes from Gary Yu from Morgan Stanley. Please go ahead.

Gary Yu -- Morgan Stanley -- Analyst

Hi. Good evening, management, and thank you for the opportunity to ask question. I have one more follow-up question on the investment strategy. So in the statement, you specifically mentioned that we intend to invest a portion of 2021 incremental profit for these investments.

Should we assume that beyond 2021, then we probably expect the normal growth trend to go back to organic growth, and then hopefully, some of these investments will start to bear fruits in the form of faster growth in the future? And when we look at kind of management, how to evaluate the potential returns of this investment, what are the key metrics that management usually follow to evaluate investment in, you know, business service, video accounts, and games, respectively? And what kind of rate of return should we expect from this investment? Thank you.

Martin Lau -- President

Well, I have to disappoint you in saying there's no specific quantitative metrics. I think, you know, a lot of times in our industry, you actually sort of look at the trend, you look at the right things you do, and then you put in the resources. And over time, if you actually sort of, you know, are right and you -- if you do it well, you know, the return is usually so much greater than what you can anticipate. But if you do all the calculations and say, "Oh, this is actually the rate of investment," and you invest according to that calculative mode, then usually, you won't be able to deliver over and beyond what the users want, and you will not be able to be a leader at the trend.

And usually, that means you're not going to even reap that return. So I think that's sort of, you know, essentially what it is. I think, you know, what we are saying is like this year, we are stepping up the investment. That's a strategic move.

And that increase in investment will actually continue. We will start to see some benefits over time. Now exactly what's the timing, I think, you know, it's hard to predict. But I think, you know, the -- it's fair to say, at least at this point in time, right, the financial impact will probably be biggest as we start stepping into the investment.


Thank you. Our next question comes from Robin Zhu from Bernstein. Please go ahead.

Robin Zhu -- Bernstein -- Analyst

Thank you. Thanks, management, and thanks for taking the question. I guess two questions, please. The first one is, could we get an update on WeChat e-commerce? You very helpfully provided us with some numbers for 2020.

I just wanted to get your thoughts on how that's trended so far in 2021, your growth expectations for, you know, e-commerce growth, especially independent merchant growth for this year, and, you know, whether the company is doing anything proactively to drive growth? Or is it mainly just an organic process? The second thing on WeChat video accounts. Wondering if you could share some metrics in terms of the progress so far, whether it's time spent or video views. And again, strategically, longer term, do you envision this being more of a PGC versus UGC type of ecosystem? And yeah, you know, how do you -- any specific sort of examples of how you're trying to improve content there? Thank you.

James Mitchell -- Chief Strategy Officer

Good morning, Robin. So on the e-commerce within Weixin, we're very pleased with the progress. I think we said, you know, last quarter that the GMV was growing at a triple-digit rate year on year last year. And, you know, the GMV continued to grow at a triple-digit rate year on year in the first quarter of this year despite a challenging base period because of people staying at home and conducting more e-commerce transactions last year.

You know, in terms of the specific initiatives we're undertaking to similar growth, we talked about some of them earlier in, you know, facilitating company -- smaller companies, making Mini Programs, building an ecosystem for intermediaries to assist merchants, offline merchants in opening and operating their mini program experiences. So I don't think there's necessarily, you know, a single -- silver bullet at this point. You know, we have the traffic. We have the payment solution.

We have increasingly user trust and confidence and merchant trust and confidence. And so it's more just an, you know, ongoing process of, you know, organically assisting all of the participants in what's becoming an increasingly vibrant ecosystem and one that's very differentiated from the other, you know, platforms or retailers in the market.

Martin Lau -- President

Now in terms of video accounts. I would say both the number of users using it, as well as the user time spent on average has been growing on organic basis and solid basis. Now in terms of further cultivating the content ecosystem, I think what we wanted to be able to do is actually a funnel, right, you know, in which it would include as many UGCs as possible. But then we will also provide all the tools and all the operating procedures and guidelines, as well as the monetization tools.

So in order to help these UGCs to really leverage our tools and make themselves into more professional providers of video content. And as a result, right, you know, they will become PUGCs over time. And these PUGCs would be offering very differentiated, as well as high-quality content. And because these users a lot of times have got certain expertise and professional knowledge in different areas, so their content will be more nutritious and will be differentiated from the pure entertainment-related content, which are now in the other platforms.

So that's sort of, you know, the way that we are trying to curate the ecosystem for video accounts.


All right. Thank you. Our next question comes from Thomas Chong from Jefferies. Please go ahead.

Thomas Chong -- Jefferies -- Analyst

Hi, good evening. Thanks, management for taking my questions. I have a question relating to the payment side. Given that digital currency is getting increasingly popular in China, what's our strategy on this one? And in terms of the monetization on payment, are there any other new business model that we can tap into these opportunities? And then my second question is relating to the advertising side.

Given that management has talked about more stringent rules in the education sector, as well as a special event, how should we think about the trend on the advertising in the next couple of quarters? Thank you.

Martin Lau -- President

I think in terms of digital currency, I think, you know, we have already talked about it before in that our WeBank is actually a participant within the trial for digital currency. And we will be developing in order to get WeBank to be supporting that. And over time, as we continue to develop our payment, as well as our other platforms, we'd actually sort of, you know, try to see whether we can provide more support for digital currency. The main reason is because digital currency is essentially a substitution for cash.

And as a result, you know, you can actually look at it as another form of cash that will be running through the banking system and then eventually running through the third-party payment system and getting into the merchants. So from that front, we are very clear that it will be, you know, quite conducive for our overall payment platform, as well as for WeBank. So that's why, you know, we'll be participating in a very active way in the continuous rollout of digital currency. Now in terms of the payment business, I think we have a very solid payment business, and the business model is actually multifold, right, you know? In that for the large merchants, we actually sort of, you know, have a take rate on the payment for, you know, the online players, in particular, and you'll have a very solid payment take rate.

And at the same time, there will also be multiple value-added services that we provide to the different merchants, such that we can actually sort of, you know, capture some kind of economics. And I think, you know, that business model is actually quite solid, and we'll continue to build on that.

James Mitchell -- Chief Strategy Officer

On the advertising side then, you know, given the size and scale of the China advertising market, I think it would be, you know, naive to assume there'll ever be a period going forward when, you know, every industry is -- you know, green lights and overperforming and, you know, all cylinders firing all across the Chinese economy. And so, you know, when we look at the landscape today, of course, you know, there are uncertainties. The impact of IDFA deprecation has actually been, I think, less than widely feared for a number of reasons. We are in a period when there's some sort of content airing uncertainty, but, you know, that should begin to clarify from July 1 onwards.

So we're in the latter stages of that period. And then we also mentioned in the prepared remarks that there's some uncertainty around the K-12 after-school tuition education. And, you know, that education sector has become one of the top five advertiser categories online. So, you know, what happens in that sector, you know, could have some moderate consequences industrywide.

But if you take a step back and look at the broader picture, then I think that, you know, all of us would agree that we'd much rather be in a world where, you know, the primary challenge is K-12 after-school education regulations in a world where the primary challenge is, you know, a COVID-19 pandemic ripping out of control that, you know, appeared to be the case this time last year. So, you know, while there'll always be challenges, I think that in the grand scheme of things, the ad industry is in a much better place than it was a year ago.

Wendy Huang -- Investor Relations Officer

Operator, let's take the last question from the queue.


Certainly. Our last question comes from Jerry Liu from UBS. Please ask your question.

Jerry Liu -- UBS -- Analyst

Hey, yes. Thank you for squeezing me in. Yeah. I just have two quick ones.

First on VAS. If I look at the gross margins this quarter, it was a little lower than the last two first quarters. So I just wanted to dig a little bit more into the drivers and, you know, what's the implication for margins here the rest of the year? I assume maybe the video mix is up a little bit. But curious about what the drivers look like within, especially the gaming business.

And then secondarily, on -- going back again to the incremental investments we're laying out this year. You know, if the focus here for us is more engineers and long-term development of games, etc. versus some of the other tiers in the sector, really a lot of what they're spending is on users and near-term promotions, etc. It just feels like our spend, you know, to the pace and the magnitude may be a little smoother.

I just want to see if that is the right understanding. Thank you.

John Lo -- Chief Financial Officer

Yeah. I think in terms of the drop in the VAS margin, there are a couple -- a few reasons. Number one, that you know, the higher, you know, live broadcast, you know, proportion that's due to the consolidation of the various apps and, you know, the organic growth of some of our live broadcasting services. At the same time, you know, there's a mix shift of, you know, PC versus, you know, mobile games as PC, you know, sort of have a higher-margin profile.

And in terms of, you know, other low-margin products, just like, you know, the digital subscription services, you know, also, you know, pull down -- drag down, you know, the product -- or gross margin.

Martin Lau -- President

Yeah. In terms of the investment, I would say your observation is correct, right? You know, That's the reason why we're saying we will be investing a portion of our incremental profits as opposed to other more e-commerce and transaction-related peers in the market in which it may be all of the incremental profit in some cases. And in some cases, it may be all of their profit. And so I think, you know, that's, you know, a correct observation.

I also want to point out that we do pick up some of the incremental investments industrywide, right, you know, because as you look at our investment associate losses, right, you know, we -- in the prepared remarks, I did point out that it actually has a 7% hit to our non-IFRS profit. So we have already, to some extent, weathered it in the current quarter.

Wendy Huang -- Investor Relations Officer

Thank you, operator. I think -- operator?


Yes. I'll now hand the call back to Ms. Wendy Huang for closing remarks.

Wendy Huang -- Investor Relations Officer

Thank you. If you wish to check out our press release and other financial information, please visit the IR section of our company website at The replay of this webcast will also be available very soon. Thank you, and see you next quarter.


[Operator signoff]

Duration: 75 minutes

Call participants:

Wendy Huang -- Investor Relations Officer

Pony Ma -- Chairman and Chief Executive Officer

Martin Lau -- President

James Mitchell -- Chief Strategy Officer

John Lo -- Chief Financial Officer

Alicia Yap -- Citigroup -- Analyst

William Packer -- Exane BNP Paribas -- Analyst

John Choi -- Daiwa Capital Markets -- Analyst

Han Joon Kim -- Macquarie -- Analyst

Eddie Leung -- Bank of America Merrill Lynch -- Analyst

Alex Yao -- JPMorgan Chase & Co. -- Analyst

Gary Yu -- Morgan Stanley -- Analyst

Robin Zhu -- Bernstein -- Analyst

Thomas Chong -- Jefferies -- Analyst

Jerry Liu -- UBS -- Analyst

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