Wendy Huang

黄雯迪

Good day, and good evening. Thank you for standing by. Welcome to Tencent Holdings Limited 2025 First Quarter Announcement Webinar. I'm Wendy Huang from the Tencent IR team. At this time all participants are in a listen-only mode. After management's presentation, there will be a question-and-answer session. \[Operator Instructions] And please be advised that today's webinar is being recorded.

大家好，早上好，晚上好。感谢各位耐心等候，欢迎参加腾讯控股有限公司2025年第一季度业绩发布线上研讨会。我是腾讯投资者关系团队的黄雯迪。目前所有与会者均处于仅收听模式。管理层发言结束后将进入问答环节。\[操作员提示] 请注意，今天的研讨会正在录音。

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 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, non-IFRS financial measures that should be considered in addition to, but not as a substitute for, measures of the group’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.

在开始正式介绍之前，我们提醒各位，本次演示包含前瞻性声明，这些声明受到多种风险和不确定性因素影响，未来可能因各种原因而无法实现。有关整体市场环境的信息来源于腾讯外部的多种渠道。本演示还包含未经审计的非国际财务报告准则（IFRS）财务指标，这些指标应与集团按照IFRS编制的财务业绩指标结合使用，而非替代。如需详细了解风险因素及非IFRS指标，请参阅我们官网投资者关系页面的披露文件。

Let me introduce the management team on the webinar tonight. Our Chairman and CEO, Pony Ma, will kick off with a short overview. President, Martin Lau, and Chief Strategy Officer, James Mitchell, will provide a business review and Chief Financial Officer, John Lo, will conclude with financial discussion before we open the floor for questions.

下面请允许我介绍今晚参会的管理层成员。我们的董事会主席兼首席执行官马化腾先生将首先作简要概述；总裁刘炽平先生和首席战略官詹姆斯·米切尔先生将进行业务回顾；首席财务官罗硕瀚先生将在问答环节前做财务总结。

I will now pass it to Pony.

接下来请马化腾先生发言。

Pony Ma

马化腾

Thank you, Wendy. Good evening, everyone. Thank you everyone for joining us. During the first quarter of 2025, our high-quality revenue streams sustained their solid growth trajectory. AI capabilities already contribute tangibly to businesses such as performance advertising and evergreen games. We also stepped up our spending on new AI opportunities such as the Yuanbao application and AI in Weixin. We believe the operating leverage from our existing high-quality revenue streams will help absorb the additional costs associated with these AI-related investments and support healthy financial performance during this investment phase. We expect this strategic AI investment will create value for users and society and generate substantial incremental returns for us over the longer term.

谢谢你，雯迪。各位晚上好，感谢大家出席。本季度，我们的高质量收入来源继续保持稳健增长。人工智能能力已在效果广告、长青游戏等业务中带来实质贡献。我们也加大了对新的AI机会的投入，例如元宝应用以及微信中的AI功能。我们相信，现有高质量收入来源所提供的经营杠杆足以吸收这些AI相关投资所带来的额外成本，从而在投资期内维持健康的财务表现。我们预计，这些战略性AI投资将为用户和社会创造价值，并在长期为公司带来可观的增量回报。

Looking at our financial numbers for the first quarter. Total revenue was RMB180 billion, up 13% year-on-year. Gross profit was RMB100 billion, up 20% year-on-year. Non-IFRS operating profit was RMB69 billion, up 18% year-on-year. And non-IFRS net profit attributable to equity holders was RMB61 billion, up 22% year-on-year.

接下来汇报第一季度财务表现。集团总收入为人民币1,800亿元，同比增长13%；毛利人民币1,000亿元，同比增长20%；非IFRS经营利润人民币690亿元，同比增长18%；归属于权益持有人的非IFRS净利润人民币610亿元，同比增长22%。

Now turning to our key services. For communication and social networks, combined MAU of Weixin and WeChat grew year-on-year and quarter-on-quarter to 1.4 billion. For digital content, Tencent Video and TME both grew their subscriptions year-on-year. For games, several evergreen titles achieved record-high gross receipts during the quarter, and Delta Force has become the highest-ranked mobile game by DAU released in China in the last three years. For cloud, Tencent Cloud's audio and video solutions ranked first by revenue for the seventh consecutive year in China.

再看核心业务表现。社交通信方面，微信及WeChat的合并月活跃账户同比和环比均增长至14亿。数字内容方面，腾讯视频和TME的付费订阅数同比增长。游戏方面，多款长青游戏本季度创下流水新高，《Delta Force》成为过去三年在中国上线、按日活跃用户数排名最高的移动游戏。云业务方面，腾讯云音视频解决方案已连续七年在中国市场收入排名第一。

I will now hand over to Martin for a business view.

下面请刘炽平先生来做业务层面的分享。

Martin Lau

刘炽平

Thank you, Pony. And good evening, good morning to everybody. For the first quarter of 2025, our total revenue was up 13% year-on-year. VAS represented 51% of our total revenue, within which the social network subsegment was 18%, the domestic games subsegment was 24% and international games was 9%. Marketing services was 18% of total revenue and fintech and business services was 30% of our total revenue.

谢谢你，Pony。各位晚上好、早上好。2025年第一季度，公司总收入同比增长13%。增值服务（VAS）占总收入的51%，其中社交网络子板块占18%，国内游戏子板块占24%，国际游戏子板块占9%。市场服务占总收入的18%，金融科技及企业服务占总收入的30%。

In terms of gross profit, overall gross profit was up 20% year-on-year in the first quarter, surpassing RMB100 billion for the first time in our history. By segment VAS's gross profit increased 22% year-on-year to RMB55 billion, representing 55% of our total gross profit, Marketing Services gross profit increased 22% year-on-year to RMB18 billion, contributing 18% of total gross profit and Fintech and Business Services gross profit increased 16% year-on-year to RMB28 billion, contributing 27% of our total gross profit.

就毛利而言，第一季度整体毛利同比增长20%，首次突破人民币1,000亿元大关。分业务来看，增值服务毛利同比增长22%至人民币550亿元，占总毛利的55%；市场服务毛利同比增长22%至人民币180亿元，占总毛利的18%；金融科技及企业服务毛利同比增长16%至人民币280亿元，占总毛利的27%。

If you look at our businesses, our existing businesses continue to generate operating leverage under our high-quality revenue and growth model. This provides us the capacity to reinvest the leverage for the exciting AI opportunity ahead of us. As we have highlighted in the prior quarter earnings call, we are stepping up investments in AI in the form of capital expenditures as well as operating expenses. Some of these GPU and AI investments already generate revenue for us, such as improved ad targeting which boosts ad revenue, improved content recommendation which boosts user time spent and thus ad revenue, usage of AI within evergreen games which boosts user engagement and thus game revenue and deployment of GPUs and AI across our computing infrastructure, APIs and platform solutions which generates cloud revenue.

从业务角度看，在我们高质量收入增长模式下，现有业务继续产生经营杠杆，为我们重新投资于令人振奋的AI机遇提供了空间。如同上一季度业绩电话会所强调的，我们正通过资本支出和运营支出两方面加大对AI的投资。这些GPU和AI投入中，有部分已开始为我们创造收入，例如更精准的广告定向提升广告收入、更优的内容推荐提升用户使用时长并带动广告收入、在长青游戏中使用AI提升用户参与度从而增加游戏收入，以及在计算基础设施、API和平台解决方案中部署GPU与AI带来的云收入。

For our other GPU and AI investments which are more long cycle in nature, there's a natural time lag between making the investments and those investments starting to generate significant revenue for us. During this time lag period, we expect the costs of those GPU and AI investments to offset our underlying operating leverage, resulting in a temporary smaller gap between our revenue and operating profit growth rates than we have achieved in recent quarters. That said, we're confident that our stepped-up investment in longer-cycle AI projects will create substantial long-term value for our users, business, and shareholders.

对于其他更具长周期特征的GPU和AI投入，从投入到产生显著收入之间存在天然时滞。在这一时间差期间，我们预计这部分投入成本将抵消我们本身的经营杠杆，使得收入增速与经营利润增速之间的差距暂时小于近年来的水平。尽管如此，我们相信对这些长周期AI项目的加码投资将为用户、业务及股东创造可观的长期价值。

Turning to our different business segments. Value-added Services revenue was RMB92 billion, up 17% year-on-year. Social Network's revenue was up 7% year-on-year to RMB33 billion driven by increased revenue from app-based games item sales, music subscriptions, and Mini Games platform service fees. Music subscription revenue increased 17% year-on-year as subscribers grew 8% year-on-year to RMB123 million and as ARPU improved. TME strengthened content offerings through deepened collaborations with labels and artists and expanded Super VIP membership benefits with enhanced sound quality for speakers, AI-generated audio effect, and offline event privileges.

转向各业务板块。增值服务收入为人民币920亿元，同比增长17%。社交网络收入同比增长7%至人民币330亿元，主要得益于基于应用的游戏内购收入、音乐订阅以及小游戏平台服务费的增长。音乐订阅收入同比增长17%，订阅用户同比增长8%至1.23亿，且ARPU提升。TME通过与唱片公司和艺人深入合作强化内容供给，并通过提升扬声器音质、AI生成音效及线下活动权益等方式扩展Super VIP会员权益。

Long-form video subscription revenue was flat year-on-year. Video subscribers grew 1% year-on-year to RMB117 million during a quarter of weaker content line-up on a relative basis. Our self-commissioned drama series, Guardians of Dafeng, was the most-watched drama series across all long-form video platforms in China during the quarter, demonstrating the ability for us to create great content.

长视频订阅收入同比持平。鉴于季度内容供给相对偏弱，视频订阅用户同比增长1%至1.17亿。本季度我们自制剧《大奉打更人》成为中国所有长视频平台中收视率最高的剧集，显示了我们制作优质内容的能力。

Domestic games revenue grew by 24% year-on-year against the low base quarter of first quarter of 2024, mainly driven by growth from flagship games notably Honor of Kings and Peacekeeper Elite, and contributions from recently released games, notably DnF Mobile and Delta Force. International Games revenue increased by 23% year-on-year or 22% in constant currency terms driven by titles including Brawl Stars, Clash Royale and PUBG Mobile.

国内游戏收入同比增长24%，主要受旗舰游戏《王者荣耀》和《和平精英》以及新近上线的《地下城与勇士：M》（DnF Mobile）和《Delta Force》的推动；一季度基数较低。国际游戏收入同比增长23%，按固定汇率计算增长22%，驱动因素包括《荒野乱斗》、《部落冲突：皇室战争》和《PUBG Mobile》等游戏。

Moving on to Communications and Social Networks. We implemented a series of upgrades to strengthen the Weixin content ecosystem. For video accounts, we streamlined the live streaming setup process and enhanced recommendation algorithms in order to cultivate and promote more original content. Total user time spent grew rapidly year-on-year in the first quarter.

转向通信与社交网络。我们实施了一系列升级措施，以强化微信内容生态。视频号方面，我们简化了直播搭建流程并优化推荐算法，以培育并推广更多原创内容。一季度视频号用户总使用时长同比快速增长。

For Mini Shops, we provided more onboarding support for merchants via greater traffic incentives and lower deposit requirements in order to enrich the range of branded products listings. Mini Shops GMV continued rapid year-on-year growth in the first quarter.

小商店方面，我们通过加大流量激励、降低保证金要求等方式，为商家提供更多入驻支持，以丰富品牌商品的上架范围。小商店GMV在一季度继续保持快速同比增长。

For Official Accounts, we simplified content creation by enabling influencers and other users to set up accounts and publish content via mobile devices in order to expand the creator community and encourage more user generated content.

公众号方面，我们通过允许创作者及其他用户使用移动设备开设账号并发布内容，简化了内容创作流程，从而扩大创作者社区并鼓励更多UGC内容。

In addition, we're in the early stages rolling out AI features within Weixin. Users can now add Yuanbao as a Weixin context for seamless AI interaction within Weixin Chat, providing context-aware responses and facilitating content discovery while leveraging the Weixin ecosystem and the World Wide Web. Weixin Search is now starting to include results powered by large language models including the fast thinking model HunYuan Turbo S and the Chain of Thought reasoning models HunYuan T1 and DeepSeek R1. We provide AI tools so that content creators can generate images matching the text of their official accounts articles and generate video effects for video accounts videos utilizing preset templates. We reduced Mini Programs development time via an AI coding assistant for creating AI programs that support natural language prompts and image inputs.

此外，我们正处于在微信内推出AI功能的早期阶段。用户现在可以将元宝添加为微信会话中的上下文，实现无缝的AI交互，为聊天提供情境化回复并借助微信生态和互联网促进内容发现。微信搜索开始加入由大语言模型驱动的结果，包括快速思考模型“混元Turbo S”以及链式思维推理模型“混元T1”和“DeepSeek R1”。我们提供AI工具，帮助内容创作者为公众号文章生成匹配的图像，并利用预设模板为视频号视频生成特效。借助AI编程助手，我们缩短了小程序开发时间，该助手支持自然语言提示和图像输入的AI小程序生成。

Now with that, I'll pass to James.

现在，我把时间交给James。

James Mitchell

詹姆斯·米切尔

Thank you, Martin. For our domestic games and starting with our flagship Evergreen games, Honor of Kings achieved record-high quarterly gross receipts as Year of the Snake-themed outfits and promotion activities targeted to specific user profiles increased the proportion of players who make purchases within the game.

谢谢你，Martin。对于我们的国内游戏，先从旗舰长青游戏说起，《王者荣耀》季度总流水创下新高，因蛇年主题皮肤以及面向特定用户画像的促销活动提升了游戏内付费玩家占比。

Peacekeeper Elite grew its average DAU and gross receipts in the first quarter through the increasing popularity of its extraction shooter mode, complementing the original battle royale mode as well as new Tang Dynasty-themed setting and items.

《和平精英》在第一季度通过其日益流行的夺取射击模式——对原有大逃杀模式形成补充——以及新的唐朝主题场景和道具，提升了平均DAU和总流水。

Several other evergreen games of varying vintages also performed well. For example, Crossfire Mobile, released more than nine years ago achieved record high gross receipts benefiting from an enhanced reward system and a new player-versus-environment mode. Crossfire Mobile was the third biggest mobile game by gross receipts industry-wide in China in the first quarter behind only Honor of Kings and Peacekeeper Elite.

多款不同年代的长青游戏也表现不俗。例如，已发布逾九年的《穿越火线》手游凭借强化的奖励系统和新的PvE模式实现历史最高流水，并在今年第一季度成为中国行业流水仅次于《王者荣耀》和《和平精英》的第三大手游。

Valorant China, released less than two years ago, more than doubled its gross receipts and average DAU year-on-year in the first quarter, benefiting from two new agents and new weapon skins. Valorant has become the second most played game in Internet cafés in China behind only League of Legends.

在中国上线不足两年的《无畏契约》一季度的平均DAU和流水同比均超过两倍，得益于两名新特工和新的武器皮肤。《无畏契约》已成为中国网吧中仅次于《英雄联盟》的第二受欢迎游戏。

And among new games, Delta Force, which relaunched in China last September, drew its PC plus mobile user base to a post-launch record level of RMB12 million peak DAU in April. Delta Force is now the sixth most popular mobile game by DAU industry-wide and the highest-DAU new game released in the last three years industry-wide.

在新游戏方面，去年9月在中国重新上线的《三角洲行动》在4月份将其PC与移动端用户基数推至发布后峰值1,200万DAU。《三角洲行动》现为行业内日活排名第六的手游，也是近三年来行业内日活最高的新手游。

Among our international games, PUBG Mobile grew gross receipts by a teens percentage year-on-year, benefiting from Golden Moon-themed events and outfits and collaborations with brands including Bugatti and the K-Pop group Baby Monster.

在我们的国际游戏中，《PUBG Mobile》凭借黄金月主题活动和皮肤以及与布加迪、K-Pop组合Baby Monster等品牌的联名，流水同比实现十几个百分点的增长。

Call of Duty Mobile's gross receipts grew year-on-year, benefiting from top-tier operator outfits featuring halo and wings and from Secret Cash, a new engagement system where players unlock rewards by completing tasks and events.

《使命召唤手游》的流水同比增长，受益于带有光环和翅膀的顶级干员皮肤，以及通过完成任务和活动来解锁奖励的新互动系统Secret Cash。

The Delta Force outside China, its PC version, which launched in December last year, has been steadily growing its user base, achieving a record level of concurrent users on Steam in May this year. The mobile version of Delta Force is the second most downloaded mobile game in international markets since its launch on April 21st, and we intend to launch a console version of Delta Force in the second half of this year.

海外版本的《三角洲行动》中，其PC端自去年12月上线以来用户基数稳步增长，今年5月在Steam上创下并发玩家新纪录。移动端自4月21日上线以来已成为国际市场下载量第二的手游，我们计划在今年下半年推出《三角洲行动》的主机版本。

For marketing services, our revenue grew 20% year-on-year to RMB32 billion, benefiting from higher user engagement, ongoing AI upgrades to our ad platform and a strengthening transaction ecosystem within Weixin. Our marketing services revenue increased year-on-year across all major advertiser industry categories.

在市场服务方面，我们的收入同比增长20%至人民币320亿元，得益于更高的用户参与度、广告平台的持续AI升级以及微信内交易生态的加强。各主要广告主行业类别的市场服务收入均实现同比增长。

On the ad tech front, we upgraded our advertising platform with enhanced Generative AI capabilities such as ad generation and video editing tools to accelerate ad creation and digital human solutions to facilitate live-streaming activities for content creators and merchants. We’re using large language models to deepen our system’s understanding of merchandise and of user interests across our apps and so deliver better ad recommendations.

在广告技术方面，我们通过增强型生成式AI功能（如广告生成、视频剪辑工具）升级了广告平台，加速广告制作，并通过数字人解决方案便利内容创作者和商家的直播活动。我们正利用大型语言模型深入理解商品属性及用户在各App中的兴趣，以提供更优的广告推荐。

By inventory, Video Accounts marketing services revenue grew over 60% year-on-year as advertisers increasingly utilized our marketing tools to boost content exposure, promote live streams, and drive sales conversion. Mini Programs marketing services revenue increased notably year-on-year, capturing closed-loop marketing demand from mini dramas and mini games. And Weixin Search revenue grew rapidly year-on-year, benefiting from increases in commercial query volume and click-through rate.

按广告位划分，视频号的市场服务收入同比增长逾60%，因广告主日益利用我们的营销工具来提升内容曝光、推广直播并推动销售转化。小程序的市场服务收入同比显著增长，捕捉到微短剧和小游戏的闭环营销需求。微信搜索的收入同比快速增长，受益于商业查询量和点击率的提升。

Looking at fintech and business services, segment revenue was RMB55 billion, up 5% year-on-year. Fintech services revenue grew by a low single-digit percentage year-on-year, benefiting from increases in consumer loan services and wealth management services activities. Our total commercial payment volume has been choppy in recent quarters and declined slightly year-on-year in the first quarter but improved in April. To support our wealth management initiatives, we integrated HunYuan and DeepSeek large language model capabilities into our financial assistant chatbot.

在金融科技及企业服务方面，分部收入为人民币550亿元，同比增长5%。金融科技服务收入同比低个位数增长，受消费信贷服务和财富管理服务活动增加的带动。近期季度我们的商业支付总额波动较大，一季度同比略有下降，但在4月份有所改善。为支持财富管理举措，我们已将混元和DeepSeek的大语言模型能力整合进我们的金融助手聊天机器人。

Business services revenue returned to a teens year-on-year growth rate in the first quarter, benefiting from higher cloud services revenue as well as increased technology service fees generated from rising e-commerce transaction volumes. Business services gross margin rose year-on-year due to improved efficiencies.

企业服务收入在第一季度恢复到十几百分点的同比增速，得益于云服务收入提升以及电商交易量上升带来的技术服务费增加。企业服务毛利率同比提升，效率得以改善。

Leading Internet platforms are increasingly adopting our audio and video solutions, TDSQL database, and general cloud infrastructure as they seek to better manage surges in their usage and enhance their overall operational efficiency. AI-related revenue within Tencent Cloud grew quickly year-on-year, driven by increased customer demand for GPUs, APIs, and platform solutions, although constrained by limited GPU availability.

领先的互联网平台在寻求更好地应对流量激增并提升整体运营效率的过程中，正越来越多地采用我们的音视频解决方案、TDSQL数据库和通用云基础设施。受客户对GPU、API和平台解决方案需求增加的驱动，腾讯云的AI相关收入同比快速增长，但仍受到GPU供给不足的限制。

And with that, I’ll pass to John to discuss the financial review.

以上就是我的分享，下面请John介绍财务回顾。

John Lo

罗硕瀚

Thank you, James. For the first quarter of 2025, total revenue was RMB180 billion, up 13% year-on-year. Gross profit was RMB100.5 billion, up 20% year-on-year. Operating profit was RMB57.6 billion, up 10% year-on-year. Interest income was RMB3.7 billion down 12% year-on-year due to lower interest yields. Finance costs were RMB3.9 billion, up 37% year-on-year, primarily due to foreign exchange losses this quarter compared to gains in the same quarter last year. The share of profit of associates and JV was RMB4.6 billion compared to RMB2.2 billion in the same quarter last year. On a non-IFRS basis, share of profit was RMB7.6 billion, up from RMB5.5 billion in the same quarter last year.

谢谢你，James。2025年第一季度，我们的总收入为人民币1,800亿元，同比增长13%；毛利为人民币1,005亿元，同比增长20%；经营利润为人民币576亿元，同比增长10%。利息收入为人民币37亿元，同比下降12%，主要由于利率回报下降。财务费用为人民币39亿元，同比增长37%，主要是由于本季度出现汇兑损失，而去年同期为汇兑收益。联营公司和合资企业的利润份额为人民币46亿元，而去年同期为人民币22亿元。在非IFRS口径下，该项利润份额为人民币76亿元，较去年同期的人民币55亿元增长。

Income tax expense declined by 3% year-on-year to RMB13.7 billion, mainly due to a high base from withholding tax provision in the same quarter last year. Domestic corporate income tax expense in the first quarter increased year-on-year. On a non-IFRS basis, diluted EPS was RMB6.58, up 25% year-on-year, outpacing non-IFRS net profit growth due to reduced share count after our share buybacks. Our weighted average number of shares for calculating Q1 '25 diluted EPS decreased by 2% year-on-year.

所得税费用同比下降3%至人民币137亿元，主要是因为去年同期预提所得税基数较高。第一季度的国内企业所得税费用同比上升。在非IFRS基础上，摊薄每股收益为人民币6.58元，同比增长25%，增速快于非IFRS净利润的增长，原因是回购股份后流通股数减少。用于计算2025年第一季度摊薄EPS的加权平均股数同比下降2%。

On non-IFRS financial figures, operating profit was RMB69.3 billion, up 18% year-on-year. Net profit attributable to equity holders was RMB61.3 billion, up 22% year-on-year. The difference in year-on-year growth rates between operating profit and net profit was partially due to higher associated income.

在非IFRS财务口径下，经营利润为人民币693亿元，同比增长18%；归属于权益持有人的净利润为人民币613亿元，同比增长22%。经营利润与净利润的同比增长率差异，部分原因是联营公司利润的增加。

Moving on to gross margins. Overall gross margin was 56%, up 3 percentage points year-on-year. And by segment, VAS gross margin was 60%, up 2 percentage points year-on-year primarily driven by a higher mix of high-margin domestic games revenue. Marketing services gross margin was 56%, up 1 percentage point year-on-year supported by growth in high-margin video accounts and Weixin Search revenues. Fintech and business services gross margin was 50%, up 5 percentage points year-on-year, mainly due to improved cost efficiency in fintech and cross services.

接下来看毛利率。整体毛利率为56%，同比提升3个百分点。分业务来看，增值服务毛利率为60%，同比提升2个百分点，主要由于高毛利的国内游戏收入占比上升。市场服务毛利率为56%，同比提升1个百分点，得益于视频号和微信搜索的高毛利收入增长。金融科技及企业服务毛利率为50%，同比提升5个百分点，主要是由于金融科技与跨服务业务的成本效率提升。

On first quarter operating expenses, selling and marketing expenses were RMB7.9 billion up 4% year-on-year, reflecting higher promotional efforts to support the growth of our AI native applications, partly offset by reduced ad spend on new game launches. Selling and marketing expenses represented 4% of revenues down from 5% in the same quarter last year. R\&D expenses rose by 21% year-on-year to RMB18.9 billion reflecting higher staff costs and increased investment to support our AI-related efforts.

第一季度运营费用方面，销售与市场费用为人民币79亿元，同比增长4%，主要用于支持AI原生应用增长的推广支出，部分被新游戏广告支出减少所抵消。销售与市场费用占收入比例为4%，较去年同期的5%有所下降。研发费用同比增长21%，达到人民币189亿元，反映出员工成本上升以及对AI相关投入的增加。

G\&A excluding R\&D expenses increased by 62% year-on-year to RMB14.7 billion primarily driven by \[RMB1 billion of RMB4 billion] (ph) stock-based compensation expense related to the restructuring of an existing commercial arrangement at an overseas subsidiary which was not included in the calculation of our non-IFRS operating profit and net profit.

管理及行政费用（不含研发费用）同比增长62%，达到人民币147亿元，主要由于某海外子公司现有商业安排重组而产生的约人民币10亿元中的40亿元（口误）的股份薪酬费用，该费用未计入我们非IFRS口径下的经营利润和净利润计算中。

At quarter end we had approximately 109,000 employees, up 4% year-on-year or down 1% quarter-on-quarter. Our non-IFRS operating margin was 39% in Q1, up 2 percentage points year-on-year.

截至季度末，公司员工总数约为109,000人，同比增长4%，环比下降1%。非IFRS口径下的经营利润率为39%，同比提升2个百分点。

To conclude, I will highlight some key cash flow and balance sheet metrics. Operating CapEx was RMB26.4 billion, up almost 300% year-on-year, driven by increased investments in GPUs and servers to ramp up our AI capabilities. Non-operating CapEx was RMB1.1 billion, down 86% from the high base in the same quarter last year due to the acquisition of land use rights. Our total CapEx was RMB27.5 billion, up 91% year-on-year. Free cash flow was RMB47.1 billion, down 9% year-on-year primarily due to increased CapEx spending on GPUs and servers. On a Q-on-Q basis, free cash flow was up 9.5 times from a low base in the previous quarter reflecting seasonally higher gains, gross receipts, and timing difference in settlement of certain accrued expenses. Net cash position was RMB90.2 billion, up 17% quarter-on-quarter due to seasonally higher gains gross receipts, partially offset by cash outflows related to CapEx investment activities as well as our share repurchases.

最后，我想总结一下关键现金流和资产负债表数据。运营性资本支出为人民币264亿元，同比增长近300%，主要用于GPU和服务器投资，以增强AI能力。非运营性资本支出为人民币11亿元，同比下降86%，去年同期基数高是由于土地使用权收购。总资本支出为人民币275亿元，同比增长91%。自由现金流为人民币471亿元，同比下降9%，主要由于对GPU和服务器的资本支出增加。环比来看，自由现金流较上一季度增长9.5倍，反映出季节性收益、流水上升以及部分应计费用结算时间差。净现金头寸为人民币902亿元，环比增长17%，得益于季节性收益和流水上升，部分被资本支出投资及股份回购导致的现金流出所抵消。

Thank you.

谢谢大家。

Question-and-Answer Session

问答环节

A - Wendy Huang

A - 黄雯迪

\[Operator Instructions] So we will take the first question from Jefferies, Thomas Chong. Thomas, your line is open.

\[操作员提示] 现在我们先请杰富瑞的 Thomas Chong 提问。Thomas，请开始。

Thomas Chong

Hi, good evening. Thanks, management, for taking my questions and congratulations on a solid set of results. My first question is about Agentic AI. Can management comment about the outlook and differentiation of pricing versus peers in the market? In addition, can management also comment about our strategies across various AI business model i.e. advertising, transactions, GPU rental, and subscriptions? And my second question is about e-commerce. Can management comment about the latest organizational adjustment in e-commerce, in particular, the latest progress in Mini Shops and what should we expect our strategies and KPIs going forward? And how should we think about the synergies with our ecosystem and differentiate for modern live streaming platforms? On top of that, can you also talk about our preparation for the June 18th campaign? Thank you.

大家晚上好。感谢管理层回答我的问题，也恭喜公司交出一份亮眼的成绩单。我的第一个问题关于 Agentic AI。管理层能否谈谈其前景以及相较市场同业在定价上的差异化？此外，请分享我们在广告、交易、GPU 租赁和订阅等多种 AI 商业模式上的策略。我的第二个问题关于电商。请介绍电商业务最新的组织调整，尤其是 Mini Shops 的最新进展，以及未来我们应如何设定策略和 KPI？我们又该如何与生态系统产生协同，并在当代直播平台上实现差异化？另外，能否谈谈我们对 6·18 活动的准备情况？谢谢。

Pony Ma

马化腾

I think you asked many questions. So, I will try to answer the first one more extensively. I think the second one answered pretty just lightly because I think other people may have the same question. So, on Agentic AI, it's a very hot concept right now and the idea is actually, the AI can actually help you to complete very complicated tasks that involve many different steps as well as the use of tools and maybe a connection with other apps. So, if we look at that concept, then there is a general Agentic AI which everybody can do. Essentially you create this agent and you go out to the world and try to complete tasks for your user. But at the same time, there's also an Agentic AI that can sit within Weixin and the unique ecosystem of Weixin. And I think those are two different products. On the general Agentic AI, I think we are creating that capability within some of our AI native products such as Yuanbao and Ima, over time, as these AIs continue to evolve to increase in terms of their capability. So, in the very beginning, these AIs actually answer questions perhaps very quickly. So those are the sort of quick responses. And then over time they include the -- they start including the chain of thoughts, long thinking, reasoning model, and you can answer complicated questions. And over time the capability can actually allow them to start doing more complicated tasks. So, they start evolving to have agentic capability and they will be interacting with all other apps and programs and external APIs to help the users. So, that would continue to evolve and it's not that much different from other Agentic AIs provided by our peers. But on the other hand, within the Weixin ecosystem, I think there is the opportunity for us to create a pretty unique Agentic AI that connects with the unique components of the Weixin ecosystem, including the social graph, including communications and community capability, including the content ecosystem, such as our official accounts and video accounts, and all the millions of mini-programs that exist within Weixin, which actually sort of gets into all kinds of information as well as transactional and operative capabilities across many different verticals of applications. So, I think that would be extremely unique compared to other more general Agentic AIs. And that's sort of a very differentiated product for us. In terms of your question on AI business models, I think if you look at advertising, it's directly augmented by AI, because AI can actually help to improve the targeting capability of our ads. And when we deliver better results, then it translates directly into additional advertising revenue. And I think that is a big opportunity that we are already realizing in our performance ads. But there's more opportunity to develop over time. Now, I think transaction is actually very closely tied to advertising. When you have advertising, that leads to direct transactions and then advertising value actually goes up significantly and I think that's the way we are actually also trying to increase our advertising revenue. That's another component and pillar of our advertising revenue growth driver. GPU rental is directly related to cloud business and that's more like a reselling business mostly. And to a large extent right now, we are putting it on a lower priority because especially when there's a short supply of GPUs then the GPU rental is lower priority for us. And subscriptions, I think, it's not the most likely business model for AIs in China. Right now, everybody is actually providing, AI is for free. So the subscription model which exists outside of China, I think it's not going to be mainstream business model for AI in China. In terms of e-commerce, I think the latest organizational adjustment is a small one, frankly, because our Weixin e-commerce team was actually incubated within our Open Platform department, and over time it has grown in size and now we are just making the formal change of separating the two so that the e-commerce team is now become an independent department but it's actually still managed by the same manager. So it's not a big change and I don't think we should be reading too much into it.

你提出了很多问题，我先详细回答第一个。第二个问题我会简单讲一下，因为其他人可能也会关注。关于 Agentic AI，这是当前的热门概念，其核心是让 AI 帮助用户完成涉及多步骤、使用多种工具，甚至需要连接其他应用的复杂任务。概念上，一种是通用型 Agentic AI，任何公司都可以做：创建一个代理为用户外出完成任务；另一种是深植于微信并依托微信独特生态的 Agentic AI，这将是两款截然不同的产品。通用型 Agentic AI 的能力正逐步内嵌到我们更原生的 AI 产品中，比如“元宝”和“Ima”。随着模型能力提升，最初只是快速回答问题，随后引入链式思维、长时推理，能处理更复杂的提问，再进一步则可执行多步骤任务，与外部应用、程序及 API 协作为用户服务，这与同行提供的 Agentic AI 并无本质差异。另一方面，微信生态内的 Agentic AI 可以连接微信独有的社交图谱、通讯与社群功能、公众号与视频号内容体系，以及数以百万计的小程序，涵盖各类信息、交易和运营能力，对比一般性的 Agentic AI 具有高度差异化和独特性。至于 AI 的商业模式，广告首先受益最大，因为 AI 能提升精准投放效果，带来更高广告收入，这在效果广告中已初见成效，未来仍有巨大空间。交易紧随其后：广告带动直接交易，进而放大广告价值，也成为广告收入增长的另一驱动。GPU 租赁更多与云业务相关，偏向转售模式。当前 GPU 供给紧张，我们将 GPU 租赁置于较低优先级。订阅制并非中国 AI 的主流商业模式——国内普遍免费提供 AI 服务，海外盛行的订阅模式在中国难成主流。电商方面，最近的组织调整规模很小：微信电商团队最初孵化于开放平台部门，随着壮大，我们只是把它正式拆分为独立部门，管理者仍是同一位负责人，不必过度解读。

Wendy Huang

黄雯迪

Thank you. As a reminder, please limit yourself of one main question and one follow-up question. We will take the next question from [Adi Yao] (ph) from Macquarie. Adi, your line should be open.

谢谢。提醒各位，请将提问限制在一个主要问题和一个跟进问题。接下来请麦格理的 [Adi Yao]（音）提问。Adi，请开始发言。

Unidentified Analyst

未具名分析师

Great. Thank you, management. Thank you, Wendy, for taking my question. I just wanted to really check on our current progress with the Yuanbao integration in Weixin ecosystem. Just wondering management, if you can shed some lights on, how do we see their user behavioral trends after we've done such integration? What do we really further expect to see synergies across different initiatives within the Weixin ecosystem including likes of Mini Shops, official accounts, video accounts, and so on. What is kind of the movements for the next step? Do we kind of expect to see, kind of combination of both private domains and the public domains to be integrated into the Yuanbao feature itself. Thank you.

好的，谢谢管理层。谢谢 Wendy 回答我的问题。我想了解元宝在微信生态中的整合进展如何。请管理层说明，完成整合后我们观察到的用户行为趋势是什么？在微信生态里的 Mini Shops、公众号、视频号等项目之间，我们还期望看到哪些协同？下一步动作是什么？我们是否会看到私域与公域结合并整合到元宝功能中？谢谢。

Pony Ma

马化腾

So, Alicia, to be honest, right now this is still at a very early stage of development and I think we can see users as they use it, they use it more. We can see that users are using it to ask questions, to have some dialogues, and also to have content directed to the Yuanbao so that Yuanbao can do summarization and help them to analyze. So these are the initial use cases that we're seeing. And as the users use and interact with Yuanbao, they are likely to be sort of using it more. I think over time, absolutely, we are going to provide more linkage of the Weixin ecosystem to the Yuanbao chat companion. And I think we'll be doing different experiments and maybe in a couple of quarters, there will be more for us to report on a systematic basis. At this point in time, it's a little bit too early to summarize everything in a systematic way for you.

所以，Alicia，坦白说，现在仍处于非常早期阶段。我们观察到，用户在使用后会越用越多。他们用元宝提问、对话，也会把内容导入元宝，让元宝做摘要和分析。这些都是初步用例。随着用户不断使用和互动，使用频率预计还会增加。未来，我们一定会把更多微信生态能力链接到元宝聊天伙伴中。我们会做不同实验，也许再过几个季度能系统性地向大家汇报。目前要全面总结还为时过早。

Unidentified Analyst

未具名分析师

Great. Thank you so much. And if I may, just a quick follow-up. As we see potentially more adoption and usage picking up across both users and the enterprises' side, what do we really plan to do in terms of managing, I guess, the balance between pace of investments versus the revenue runway, especially during the early ramp-up stage? Thank you.

好的，非常感谢。再追问一下：随着用户端和企业端的采用和使用增加，在早期扩张阶段，我们如何平衡投资节奏与收入增长潜力？谢谢。

Pony Ma

马化腾

Well, at this stage, I think we want to go full speed in terms of trying to generate demand and if frankly there's too much demand that our GPUs can handle, then we would start thinking about how do we pace it. It would be a nice problem to have. At this point in time, we're not there yet.

Unidentified Analyst

未具名分析师

Great. Thank you.

好的，非常感谢。

Wendy Huang

黄雯迪

We will take the next question from William Packer from BNP. William, your line is open. William, you can unmute yourself, your line is open.

接下来请 BNP 的 William Packer 提问。William，你的线路已打开。William，你可以取消静音，线路已打开。

William Packer

Thanks, management, for taking my questions and congratulations on the strong quarter. It was a very strong quarter for domestic games. Could you help us think through the longer-term implications for the growth algorithm in that segment? Should we think of the strong performance as a catch-up demand for the weaker 2021 to '23 period? Or have recent developments such as the concentration of consumer attention and spend on key global games where Tencent is overweight and faster content release cycles with AI changed things underpinning better structural growth? And as a follow-up, there's been a lot of noise globally recently around regulatory interventions changing the split of economics between app stores and apps. Per management commentary, is this something Tencent has focused on in recent years? Where should we think of China on this journey in the split of value between apps and app stores, especially in the video game segments? Are there further shifts here as a value driver for Tencent? Thank you.

感谢管理层回答我的问题，并祝贺公司取得强劲的季度业绩。国内游戏业务表现尤为出色。请帮我们思考这一板块增长算法的长期含义：应否将强劲表现视为对 2021 至 2023 年疲软时期的需求回补？还是说近期趋势——如消费者注意力和支出集中于腾讯占比较高的关键全球游戏，以及 AI 带来的更快内容发布周期——已改善结构性增长基本面？作为跟进，全球近期对监管干预改变应用商店与应用之间经济分成的讨论很多。管理层之前亦有评论，腾讯近年是否一直关注此议题？在应用与应用商店的价值分配进程中，尤其在视频游戏板块，中国处于何种阶段？这里是否仍有进一步转变，成为腾讯新的价值驱动因素？谢谢。

Pony Ma

马化腾

Thank you, William. So on your question about domestic games, the first quarter, we did have the benefit of easy comparison against the first quarter of 2024. So that certainly played in our favor during the first quarter in a way that won't be true in every future quarter. But we do feel, we do believe we have a long runway for our domestic and indeed international game revenue growth looking forward. And there's many reasons, but just to pick on three for now. First of all, we talked extensively this time last year about some of the changes we were making to how we envisage and therefore how we operate and therefore who operates our biggest domestic games. And you can see that, we've made those changes and they're bearing the fruit that we hoped they would bear and we see them bearing more fruit going forward. A second driver or enabler of that long runway is the utilization of AI, which we think is particularly beneficial to the big competitive multiplayer games that we've talked about extensively and that represent the majority of our domestic game revenue. And that's the case because while there's many ways that we can, and we're starting to deploy AI within games, some of the most interesting include using AI to help coach new players, to help accompany existing players, to help prevent cheating and hacking and so forth. And all of those are particularly important within competitive multiplayer games. And then third, our game teams have -- really strived to align themselves with where the game audience or the future game audience is moving toward in China and historically the proportion of game activity in China, that is first-person action games, is much smaller than in the rest of the world. And we've taken the view that China would catch up. And if you look at the slide talking about domestic games for us this quarter, you can see that most of the games we highlighted are games that are the leaders within that first-person action vertical within China, because Tencent is the leader in that vertical within China. And the users are indeed moving towards those first-person action games such as Peacekeeper Elite, such as Crossfire Mobile, such as Call of Duty Mobile, such as Valorant, and now such as Delta Force. And, each of those games is growing at faster or slower rates. But in aggregate because all of them are growing and some of them, such as Valorant and Delta Force are growing very quickly, the overall category is seeing very healthy growth. And that's what underpinned our domestic game revenue growth this quarter, but also provides us with a long-term runway for domestic game revenue growth. Then, moving on to the app stores, it is indeed a time of change in terms of the economics which previously were unfairly penalizing digital content creators, in particular, game companies giving a free ride to physical product providers. And in our view, as a company that operates an app store but is also a digital content provider, we're over-rewarding the app stores. And that change has been underway in China for several years and now the digital content creators, including ourselves, are getting a fairer share of the end user spend. That change has been much slower or has not happened at all in the Western world until very recently. But there are now a number of legal cases underway. There are now a number of regulatory interventions and we do believe that while it's difficult to forecast what happens this week, what happens next week, over the longer term, there will be a reset toward a more equitable relationship whereby the digital content providers are able to retain more of the value that they create as opposed to effectively subsidizing a system that benefits the e-commerce and other companies which aren't paying anything into the whole app store ecosystem. So anyway, we think that's the direction of travel both in China where it's more evident, but also in the rest of the world where we think it will become more evident over time. Thank you.

谢谢你，William。关于国内游戏，你提到的第一季度业绩确实受益于与 2024 年第一季度的低基数对比，这对我们有利，未来季度未必如此。但我们相信，无论国内还是国际业务，游戏收入仍有长足增长跑道。原因很多，这里先谈三点。首先，去年此时我们对最大型国内游戏的愿景、运营方式及团队作出了调整，如今这些调整已结出预期之果，并将在未来继续发力。第二个驱动力是 AI 应用，尤其利于大型竞技类多人游戏，这些游戏占国内游戏收入大头。目前我们已开始在游戏中部署 AI，用于新手辅导、陪伴老玩家、防止作弊破解等，在竞技类游戏中尤为重要。第三，我们的团队努力与中国玩家、未来潜在玩家的偏好保持同步。历史上，中国第一人称动作游戏占比远低于全球平均，我们判断中国会迎头赶上。本季度国内游戏幻灯片中，大多数重点产品都是此垂直领域的领军者，因为腾讯在该领域居首。玩家正转向《和平精英》《穿越火线手游》《使命召唤手游》《无畏契约》和新作《三角洲部队》等第一人称动作游戏，这些游戏增速各异，但整体均在增长，其中《无畏契约》《三角洲部队》等增长迅猛，带动品类健康增长。这不仅支撑了本季度国内游戏收入，也为长期增长奠定基础。

再谈应用商店经济。过去，数字内容创作者，尤其游戏公司，在分成上被不公惩罚，而实物商品商却坐享其成。作为既运营应用商店又提供数字内容的企业，我们认为应用商店获得的回报过高。中国已数年前启动变革，现今包括我们在内的数字内容创作者获得更公平的用户支出份额。西方市场变革更慢，直到最近才开始。但目前多起诉讼与监管介入正在进行。我们相信，虽然难以预测短期走势，但长期看关系将被重置为更公平——数字内容提供商能保留更多自身创造的价值，而不必继续补贴不向应用商店体系付费的电商及其他公司。总之，这一趋势在中国已较明显，我们也认为未来将在全球范围内愈加显著。谢谢。

Wendy Huang

黄雯迪

Thank you. We will take the next question from Alicia Yap from Citigroup.

谢谢。接下来请花旗的叶伟婧提问。

Alicia Yap

叶伟婧

Hi, thank you. Good evening, management. Congrats on the strong results. Thanks for taking my questions. Number one, I wanted to ask, can management share with us over the past two or three months, what are some of the notable user behavior changes that Tencent is able to observe, post the deeper integrations of AI into various of your business applications. For example, in terms of how users using Yuanbao, whether these AI in Weixin are being noticeable by the business partner, and how Tencent expects some of the analysis that you actually observe could help the company in further improving the user value and also future monetization potential. And then follow up on gaming is that I know in addition to some of the bigger games that which is been benefiting from the AI integration, will some of the smaller title will also be integrating with AI in the coming quarters that we could see improving monetization or revival of user engagement on some of the mid-tier games as well? Thank you.

您好，谢谢。各位管理层晚上好，恭喜公司取得强劲业绩，感谢回答我的问题。首先，我想请教，过去两到三个月，随着公司在各项业务应用中更深入地整合 AI，腾讯观察到用户行为出现哪些显著变化？例如，用户在使用“元宝”方面的情况，或微信中的这些 AI 是否已被商业合作伙伴明显察觉？腾讯预期这些观察结果如何帮助公司进一步提升用户价值并释放未来的变现潜力？另外关于游戏，我知道除了已因 AI 整合而受益的大型游戏外，未来几个季度是否也会有体量较小的游戏集成 AI，从而提升变现或重新激活中型游戏的用户参与度？谢谢。

Pony Ma

马化腾

Well, Alicia, I think we actually covered your question earlier which is it's probably too early to sort of conduct a systematic analysis of the behavioral change of users. At this stage, I think we're trying to create functionalities and user experiences that would leverage AI and try to see what may or may not stick with the users. So as I said, the users sort of like to ask questions, like to interact with the AI with further follow-up questions, and when we put in various functionalities such as allowing photos to be analyzed and so that people use it. So there are a lot of functionalities which right now were put in and we're starting to get to see people like them a lot or are not using it that much. So, it's a discovery process. And -- but as a whole right now, we can see users are using and interacting with our AI agents more and more as they sort of continue to develop affinity as they continue to figure out what value-add the agents can do for them. So I think that the overall usage is actually increasing.

好的，Alicia。其实我们之前已部分回答过你的问题——现在要对用户行为变化进行系统性分析还言之过早。目前，我们正尝试打造能充分利用 AI 的功能和体验，观察哪些能被用户接受、哪些不能。正如我所说，用户喜欢提问，也喜欢通过后续问题与 AI 互动；当我们上线诸如照片分析等功能时，也看到一些用户使用。因此，我们目前投放了许多功能，正在探究用户到底喜欢哪些、不太使用哪些——这是一个探索过程。不过总体来看，用户与我们 AI 代理的互动和使用都在持续增加，随着他们对代理逐渐产生黏性、并理解代理能为其带来哪些增值，整体使用量正在提升。

Martin Lau

刘炽平

And on your second question, I talked a little bit in response to William's question about how we're deploying what should we say is game AI into our big competitive games. And we're at a very early stage of that deployment and so we think the biggest opportunity for us is continuing down that road. Now, at the same time, there's a sort of separate opportunity to deploy more, more generative AI into more content-driven games. And by doing so, perhaps one would be able to facilitate initially faster creation of content by the game studio itself and then over time some degree of user-generated content, varying quality of experiences, and ultimately dynamically created content where the game itself is spinning up in a new environment if the players choose to venture off the preset map. But all of that is, I think, to be explored in the years ahead. And as of right now, the bigger more tangible opportunity is around utilizing what we'll call game artificial intelligence within the big competitive multiplayer games. Thank you.

关于你的第二个问题，我在回应 William 时已简要说明，我们正将所谓的“游戏 AI”部署到大型竞技类游戏中，目前处于非常早期阶段，因此最大的机会是继续沿着这条路径深入。同时，还存在一个独立机会：将更多生成式 AI 引入更侧重内容驱动的游戏。如此一来，可先让工作室更快速地制作内容；随后，随着时间推移，可实现一定程度的用户生成内容、带来多样化体验；最终，当玩家选择离开预设地图时，游戏可动态生成全新环境。不过，这些都需要在未来几年持续探索。就目前而言，我们最明确、可触及的机会仍是把“游戏人工智能”应用于大型竞技类多人游戏。谢谢。

Wendy Huang

黄雯迪

Thank you. We will move to the next question from Kenneth Fong from UBS.

谢谢。我们将进行下一个提问，来自瑞银的 Kenneth Fong。

Kenneth Fong

Hi, good evening, management. Thanks for taking my question. My first question is on the high-end GPU. Recently the US has introduced the licensing requirement for the high-end GPU. We understand that our priority is to use this GPU internally. First, could management share your perspective on this situation and how would it impact, if any, our capital expenditure, AI development as well as product launches? And I have a follow-up on the macro situation. In our press release we indicate that our consumer loans business has experienced a year-on-year revenue growth after a more conservative approach last year. Considering the still uncertain macro environment, can management share some insight on what we have observed on the ground, both on the customer side as well as on the advertiser side? Thank you.

管理层晚上好，感谢回答我的问题。我的第一个问题关于高端 GPU。近期美国对高端 GPU 引入了许可要求，我们理解公司会优先将这些 GPU 用于内部。首先，请管理层分享对此情况的看法，以及其可能对我们的资本开支、AI 开发和产品发布产生何种影响？其次关于宏观环境：在新闻稿中我们提到，在去年采取更为谨慎的策略后，我们的消费贷款业务实现了同比收入增长。在宏观环境仍不确定的情况下，请管理层分享我们在一线观察到的客户端和广告主端情况。谢谢。

Martin Lau

刘炽平

Well, on the GPU front, it's actually a very dynamic situation right now. So the — since the last earnings call, we have seen an H20 ban and then after that there was the BIS new guidelines that just came in overnight. So it's a very dynamic situation and we just sort of have to manage the situation, on one end sort of in a completely compliant way, and on the other end, sort of, we try to figure out the right solution for us to make sure that our AI strategy can still be executed. So, the good thing that we are in is that, number one, I think we have a pretty strong stockpile of chips that we acquired previously and that would be very useful for us in executing our AI strategy. And if you look at the allocation of the usage of these chips, obviously they'll be used for the applications that will generate immediate returns for us. For example, in the advertising business as well as content recommendation product, where we actually would be using a lot of these GPUs to generate results and generate returns for us. Secondly, in terms of the training of our large language models, they will be of the next priority and the training actually requires higher-end chips. And the good thing on that front is that over the past few months, we start to move off the concept or the belief of the American tech companies, which they call the scaling law, which required continuous expansion of the training cluster. And now we can see even with a smaller cluster you can actually achieve very good training results. And there's a lot of potential that we can get on the post-training side which do not necessarily meet very large clusters. So that actually help us to look at our existing inventory of high-end chips and say we should have enough high-end chips to continue our training of models for a few more generations going forward. And then the larger need for GPUs are actually sort of around inferences and especially sort of when you see a growth in demand for inference on the user side as well as when we move into the chain of thoughts reasoning model, it actually requires many more tokens to answer a complicated question. And if we move into Agentic AI, it requires even more tokens than there's actually a lot of need on the inference side. But on the inference side, I think there's actually a lot of work that could be done for us to manage the need. One is just sort of leveraging software optimization. I think there's still quite a bit of room for us to keep on improving the inference efficiency. So if you can improve inference efficiency 2x, then basically that means the amount of GPUs get doubled in terms of capacity. So that's actually a very good way of investing our resources to improve on the inference efficiency. And the other approach is we can customize different sizes of models. Especially some applications do not require very large models. And we can tailor-made models and distil models so that they can be used for different use cases and that can actually save on the inference usage of GPUs. And finally, we actually can potentially make use of other chips, compliant chips available in China or available for us to be imported, as well as ASICs and GPUs in some cases for smaller models inferences. So I think there are a lot of ways to which we can fulfill the expanding and growing inference needs and we just need to sort of keep exploring these venues and spend probably more time on the software side rather than just force buying GPUs.

关于 GPU 的问题，当前形势非常动态。自上次财报电话会以来，我们经历了 H20 禁令，随后又出现了 BIS 一夜之间发布的新指引。形势瞬息万变，我们必须一方面完全合规应对，另一方面寻找合适方案，确保 AI 战略得以执行。好在我们具备两大优势：其一，我们此前已储备了相当可观的芯片库存，这对落实 AI 战略非常有用；这些芯片将优先用于能立即带来回报的应用，例如广告和内容推荐。其二，大语言模型训练需要高端芯片，是下一优先级。过去几个月，我们不再盲从所谓“扩展定律”——即必须不断扩大训练集群；事实证明，即便较小集群也能取得良好训练效果，后训练阶段仍有大量潜力，并不一定需要超大集群。这意味着现有高端芯片库存足以支持未来数代模型训练。更大的 GPU 需求集中在推理环节：随着用户侧推理需求攀升，链式思维推理模型回答复杂问题需要更多 token，Agentic AI 需求更大。但推理侧仍有多种手段可管理需求：其一，软件优化仍有提升推理效率的空间，若效率翻倍，相当于 GPU 容量加倍；其二，可针对不同场景定制和蒸馏模型，减少推理对 GPU 的消耗；其三，可使用中国境内或可进口的合规芯片，以及在小模型推理场景中使用 ASIC 或其他 GPU。通过这些途径，我们可满足不断扩大的推理需求，并将更多精力投入软件优化，而非一味采购 GPU。

James Mitchell

詹姆斯·米切尔

And on your question about loan facilitation business and what we're observing on the ground, so, what we have observed on the ground this year is that the credit quality for the loans that we facilitate through our platform has been gradually but consistently improving. And we think that's partly due to better selection of borrowers and so forth. But it's partly also due to a more macro development, which is that over the last several years, consumers in China in aggregate have built up unusually large savings balance and, all else equal, one would rather be lending into, a consumer with unusually large savings than the consumer with unusually limited savings. So we are enabling the facilitated loan book in aggregate to grow in a very measured way. Looking forward, how far can we grow that loan book? We estimate that if we benchmark that the loan book facilitated through our fintech platform with the loan book of, our largest peer companies, then we're currently a fraction of their size. And so, while we'll continue to do this in a very measured fashion, we do think that there's a long, many year runway for us to continue growing these high-margin loan facilitation revenues. Thank you.

关于贷款撮合业务及一线观察，今年我们看到通过平台撮合的贷款信用质量正在稳步改善。一方面得益于更优的借款人筛选，另一方面也因为宏观因素：过去几年，中国消费者整体积累了异常高的储蓄余额，向储蓄充裕的群体放贷显然优于向储蓄有限者放贷。因此，我们正以克制方式推动贷款撮合余额温和增长。展望未来，这一余额还有多大增长空间？若将我们金融科技平台撮合的贷款余额与最大同业相比，目前仅为其一小部分。虽然我们会继续审慎推进，但我们相信，高利润的贷款撮合收入仍有多年长跑道可供持续增长。谢谢。

Wendy Huang

黄雯迪

Thank you. We will move to the next question from John Choi from Daiwa.

谢谢。我们将进入来自大和的 John Choi 的下一个提问。

John Choi

Thanks for taking my question and congratulations on the strong set of results. I want to have a quick question on the comment on about reinvesting into AI. I think you guys mentioned earlier in the opening remarks a smaller gap between revenue and operating profit. Can you kind of elaborate a bit more on this, the magnitude and what kind of extensive period that we're talking about? And like, apart from CapEx, what are some of the expense items that we should be expecting? And I have a quick follow-up on the FPS for the domestic game business. As you said, Delta Force did very well this quarter, but also across Fire Mobile, I just want to understand, are we seeing a structural evolvement in this typical first-person genre, as you point out earlier, across the board, do we expect, kind of evergreen status for multiple games within this specific vertical? Thank you.

感谢回答我的问题，并祝贺公司取得亮眼业绩。我想快速追问一下关于再次投入 AI 的评论。我记得你们在开场白中提到收入与经营利润之间的差距将缩小。能否进一步说明这一差距的幅度，以及我们讨论的时间跨度大约多长？此外，除了资本开支之外，还会有哪些费用项目值得关注？我再跟进国内游戏业务的 FPS 领域。正如你们所说，本季度《三角洲部队》表现出色，《穿越火线手游》等也表现不俗。我想了解，典型第一人称射击类型是否正在发生结构性演变，如你们早前所言，该垂直领域是否可能出现多款游戏长期共存的“常青”局面？谢谢。

Martin Lau

刘炽平

Those are interesting questions and I'll try to answer both of them, but you can prod me if I fail to answer one of them. So, on the gap between our profit growth and our revenue growth and the narrowing of that gap, the magnitude, the duration, then we're at uncharted territory not only for Tencent but for the whole world in terms of the deployment of artificial intelligence. So I don't have necessarily a very high degree of confidence in these statements, but if you're thinking about measuring the duration, then the past may be the best guide to the future. In that Tencent has been through many time periods where we have cultivated a new product toward critical mass and substantial popularity ahead of monetizing that product and typically the duration of those gaps between investment to cultivate versus monetization and revenue generation would be in the sort of one to two-year time range. So obviously it will depend on what our peer companies do in China. Obviously, it will depend on consumer habits, on advertiser habits. But I think that's a reasonable timeframe to think about. In terms of magnitude, I won't go beyond what we said earlier, which is referring to a narrowing. So we don't expect the delta between revenue growth and operating profit growth that we experienced this quarter to continue. There'll be a narrowing, but on the other hand, we don't expect our operating leverage to turn negative either. In terms of what costs other than CapEx or really depreciation could cause that narrowing, then CapEx depreciation is by far the most important. We do have some incremental marketing expenses for Yuanbao, although not so much for AI within Weixin. And then we reference the fact that engineers with expertise in AI are expensive. But that's more of a sort of mixed comment rather than an aggregate headcount comment. We don't see a step up-in headcount. We'll continue to manage the headcount closely. But we observe that engineers with that AI expertise are rightly well paid. So that's on your first set of questions. On your second set of questions around the popularity of first-person action games in China, then I think two broad comments. One is as I mentioned, to a large extent this represents China gamer behavior converging with long-standing gamer behavior in the rest of the world. In the rest of the world, the first-person action genre is the super genre within games. It's the equivalent of a drama series on television. It represents 40% to 50% of gamer time spent and gamer revenue generation. In China historically it had been 10% to 20%. But what we see when we look at the different cohorts, generations of gamers, is that younger gamers in China are disproportionately attracted to first-person action games and first-person action games like Valorant that very directly appeal to let's say the 20 to 30-year-old demographic are doing particularly well. So that's one observation. The second observation is that while our newer first-person action games are doing well, so are a number of our incumbent games including Peacekeeper Elite, Call of Duty Mobile, and Crossfire Mobile, and I think there's a number of reasons for that, but one is that you may remember a few years ago, the unlock of the Battle Royale mode which in the west resulted in a fortnight becoming very popular, Call of Duty, War Zone, PUBG, all becoming popular and that was a sort of step up which meant that the overall genre expanded. In China, we saw that step up from Battle Royale and then more recently we've seen another step up through the popularity of so-called extraction shooter. And so I mentioned that the increase in usage for Peacekeeper Elite, which is the biggest first-person action game in China, has been largely around the extraction shooter mode. For Delta Force, most of the high-retention users play extraction shooter mode. So, we believe that every few years there are these new modalities of gameplay within first-person action that generally expand the overall audience more than they cannibalize and that's what's underway today. So we're very happy with the progress of multiple of our first-person action games in China.

这些都是很有意思的问题，我会尽量一并回答，如有遗漏请提醒。首先谈利润增速与收入增速差距的缩窄——这一差距的幅度和持续期——在人工智能的投入上，不仅对腾讯，对全球都是未知领域，因此我对这些判断的信心并非百分之百。如果要衡量持续时间，历史或许是最佳参考：腾讯过去多次在产品达到临界规模、广受欢迎之前先行投入，再开始变现，这种投入与收益之间的间隔通常为一到两年。当然，这取决于国内同行的行动、消费者习惯以及广告主习惯，但我认为这是一个合理的时间框架。至于幅度，我不再超出先前所言——就是差距将会缩小，因此我们不预计本季度收入增速与经营利润增速间的差距会持续下去；差距会收窄，但我们也不认为经营杠杆会转负。除资本开支（更准确说是折旧）之外，导致差距收窄的成本中，折旧占比最大。元宝方面会有一些追加的市场费用，但微信内部的 AI 相关费用并不多。我们也提到具备 AI 专长的工程师薪酬较高，这是结构性现象，而非总人数激增。我们不会放松对员工总数的管理，但也理解 AI 人才高薪是合理的。这回答了你的第一组问题。

至于第二组关于第一人称动作游戏在中国的人气，我有两点总体观察。第一，正如我之前提到的，这很大程度上体现了中国玩家行为与全球长期玩家行为的趋同。在全球范围内，第一人称动作是“超级品类”，相当于电视里的正剧，占玩家时长和收入的 40%–50%；而在中国，这一比例历史上只有 10%–20%。通过观察不同代际的玩家，我们发现年轻玩家对第一人称动作游戏的偏好显著更高，像《无畏契约》这样直接面向 20–30 岁人群的游戏表现尤为突出。第二，除了新推出的第一人称动作游戏表现亮眼，我们的多款老牌游戏（包括《和平精英》《使命召唤手游》《穿越火线手游》）同样表现强劲。原因之一是几年前“大逃杀”模式的引入在西方催生了《堡垒之夜》《使命召唤：战区》《绝地求生》等现象级产品，推动整个品类扩张；在中国，我们先经历了大逃杀带来的跃升，最近又因“撤离射击”模式的流行迎来新一轮提升。我提到，《和平精英》的使用量增长主要来自撤离射击模式；《三角洲部队》高留存用户大多也玩这一模式。我们相信，每隔几年，第一人称动作游戏都会出现新的玩法形态，这些形态往往是扩圈多于蚕食，这正是当下的趋势。因此，我们对多款第一人称动作游戏在中国取得的进展感到非常满意。

Wendy Huang

黄雯迪

Thank you, John. I will take the next question from Jialong from Nomura.

谢谢你，John。接下来请野村的史家龙提问。

Jialong Shi

史家龙

Good evening. Thanks, management, for taking my questions. I have a few questions for ads business. Each quarter we hear management mention AI tech as one of the drivers for your ad business. So I just wonder how much more room of growth will likely come from the deployment of AI tech into your ad business? And separately, what is the latest ad load and eCPM for your video account ads? And regarding Weixin Search, so I just wonder what is the latest search query market share for your Weixin Search and how much of the ad revenue is now contributed by Weixin Search? After you guys add the AI search feature into Weixin, do you see a migration of user search activity from traditional search to AI search? Thank you.

晚上好。感谢管理层回答我的问题。我对广告业务有几个疑问。每个季度都听到管理层提到 AI 技术是广告业务增长的驱动因素之一。请问，将 AI 技术应用于广告业务还可能带来多大的增长空间？此外，视频号广告的最新广告加载率和 eCPM 各是多少？关于微信搜索，微信搜索目前的查询市场份额是多少？其贡献的广告收入占比又有多少？在微信加入 AI 搜索功能后，是否观察到用户的搜索行为从传统搜索迁移到 AI 搜索？谢谢。

James Mitchell

詹姆斯·米切尔

Okay, I'll try to address some or all of those as best I can, but in terms of how much of the -- how much further AI benefits can boost our advertising revenue, it's really a sort of global industry question. If I knew the answer to that question, then it'd be very helpful for understanding Meta and Google and a whole range of companies beyond Tencent. And, if I try to sort of simplify the framework, then a big part, not all, but a big part of the uplift that AI is providing to advertising revenue today can be quantified in the form of the click-through rate on ads. Historically, banner ads achieved a roughly 0.1% click-through rate. Feed ads achieved a roughly 1.0% click-through rate. With the benefit of AI, we've seen that the click-through rate on certain ad inventories can improve toward 3.0%, for example. And then the question is, what's the upper limit on that click-through rate? At this point, no one knows the answer because it almost becomes philosophical if you had complete information or insight into a consumer, if you had the ability to infer what the consumer wants or the consumer, given their prior behaviors, should want and then deliver an ultra-targeted ad to that consumer. Then, it's very hard to say that the upper limit should be X percent rather than Y percent. Of course, there's other ways that AI benefits advertising revenue. We can use AI to target more appealing content to the consumer, which means they spend more time in the feed, which means they then view more ads. But I think that ad click-through rate is perhaps the most important. In terms of the video accounts ad load, we have kept it fairly stable for the last, I think, six months now and it's still around 3% to 4%. In terms of the video account CPM, it remains a very good number, partly because of the high click-through rate that we're achieving, partly because there is advertiser competition to have access to the inventory that's available. In terms of the Weixin Search query share, we haven't disclosed that number but it's on a good upward trend. And then in terms of how users are responding to AI search, I think it’s -- one of my colleagues may have a more nuanced answer. But, a, it's early days, and b, I think the whole concept of AI search is a little bit slippery in that where does one draw the boundary between a consumer typing a prompt into a pure place AI experience versus typing a query into a search engine that could be answered by the traditional algorithm or could be answered by a large language model-powered result? The two are sort of blending together and, we think that, as a relative newcomer, new entrant into the search industry, that's good for us because it's a chance for us to build user share and ultimately build revenue share as well.

好的，我会尽力回答这些问题。关于 AI 还能在多大程度上进一步提升我们的广告收入，这实际上是一个全球性行业问题；如果知道答案，将有助于理解 Meta、Google 以及腾讯以外的众多公司。若简化框架，当下 AI 对广告收入的提升很大一部分——虽然并非全部——可以通过广告点击率来量化。历史上，横幅广告点击率约 0.1%，信息流广告约 1.0%。借助 AI，我们看到某些广告库存的点击率可提升至约 3.0%。那么点击率的上限是多少？目前没人知道，因为如果你能对消费者拥有完全洞察，预测其需求并推送极度精准的广告，就很难界定上限到底应是 X% 还是 Y%。当然，AI 提升广告收入的方式不止于此：它还能向用户分发更有吸引力的内容，让他们在信息流停留更久，从而看更多广告。但广告点击率或许最关键。视频号广告加载率在过去约六个月保持相当稳定，仍在 3%–4% 之间。视频号 CPM 表现依旧优异，一方面因点击率高，另一方面因广告主竞争有限库存。微信搜索的查询份额虽未披露，但正稳步上升。至于用户对 AI 搜索的反应——我的同事可能会给出更细致的回答——首先这仍处于早期阶段；其次，AI 搜索概念本身较模糊：用户在纯 AI 场景输入提示词，与在搜索引擎输入查询并由传统算法或大模型返回结果，两者边界正在融合。作为搜索行业的后进入者，这对我们有利，因为这让我们有机会扩大用户份额并最终提升收入份额。

Wendy Huang

黄雯迪

Thank you. We will take the next question from Alex Yao from JPMorgan.

谢谢。我们将进行下一个提问，来自摩根大通的 Alex Yao。

Alex Yao

Thank you, management, for taking my question. And congrats on solid quarter. So the first question is on advertising performance, which accelerated from 17% in Q4 to 20% in Q1. So we want to understand to what extent is such a strong performance or acceleration driven by macro recovery versus technology improvement versus inventory release? Based on the prior commentary, I guess inventory release should be the smallest impact for one. So, even if accurately quantified, the impact is difficult, would you be able to give us a rank of the impact on the revenue acceleration? And then another question is on the AI product format. So, you guys have been actively acquiring user adoption for Yuanbao for a while. Can you share us with the user feedback, retention, et cetera, on those users who are actively using Yuanbao? More importantly, in terms of the product, how do you see the future development of the chatbot AI application? Is it likely the ultimate form of generative AI? Thank you.

感谢管理层回答我的问题，并祝贺本季度业绩稳健。我的第一个问题关于广告表现：收入增速由去年四季度的 17% 提升至今年一季度的 20%。请问这一强劲表现或提速在多大程度上分别受宏观复苏、技术进步及库存释放驱动？此前评论提到库存释放影响最小，即便难以精确量化，能否为这些因素对收入加速的贡献排个序？第二个问题关于 AI 产品形态。你们已积极推动用户采用“元宝”一段时间。能否分享活跃使用元宝用户的反馈、留存等情况？更重要的是，就产品形态而言，你们如何看待聊天机器人 AI 应用的未来发展？它会成为生成式 AI 的终极形态吗？谢谢。

James Mitchell

詹姆斯·米切尔

So why don't I answer the advertising question but not the AI question? So, I think on the advertising, Alex, I wouldn't read too much into the quarter-by-quarter fluctuations in the advertising revenue growth rate. It's been within a band and frankly, the first quarter was at the upper end of that band. And we wouldn't even necessarily desire an acceleration. For us it's more important to really preserve a very long runway for sustaining that band for many, not quarters, but many years to come and it may be that if we see ourselves, being too close to the top of the band, then we take more time in terms of increasing the ad load for our existing products or in terms of deploying ads against our newer AI products and really focus on optimizing for user time spent, user experience rather than trying to have – rather than trying to break out of the top of the band. But then, the band exists for a shorter period of time than we would like it to. So I think that's the broad general comment. In terms of your question and sub-question about the specific drivers for the fluctuation upward in the first quarter, it's certainly not inventory because we haven't increased inventory at all. I don't know whether it's macro or not. We probably need to wait and see what other companies report. And then the cadence of ad tech improvements around AI is not something that we try to sort of overly plan on a quarter-to-quarter basis. So, again, in summary, I'd just say that this was a normal sort of fluctuation within a band to the upper end of the band. And I wouldn't read anything or I wouldn't read too much into it and I wouldn't over-extrapolate it forward either.

我先回答广告而非 AI 部分。Alex，就广告业务而言，我不会过度解读单季收入增速的波动，它一直处于一个区间，而一季度只是落在该区间的高端。我们并不刻意追求更快增速；对我们而言，更重要的是保持这一区间在未来多年而非仅几个季度的持续性。如果发现自己过于接近区间上限，我们可能放慢提升现有产品广告加载率或在新 AI 产品中投放广告的节奏，更专注于优化用户时长和体验，而非冲破区间上限，否则区间存在的时间可能缩短。至于一季度收入上行的具体驱动，肯定不是库存释放，因为库存并未增加；是否宏观因素尚难判断，还需观察其他公司披露。关于 AI 广告技术改进的节奏，我们也不会按季度过度规划。总之，这是区间内向上端的正常波动，不必过度解读，也不宜外推。

Martin Lau

刘炽平

There's organic growth of traffic too. So that probably is a pretty important driver.

流量的自然增长也是相当关键的驱动因素。

James Mitchell

詹姆斯·米切尔

Yeah, the traffic growth and the ad tech improvements are why the band is in the teens rather than the single-digit positive or the single-digit negative range and then the fluctuations within that band. I think that there's some quarterly noise associated with them. But the bigger picture, as Martin points out, is that we have traffic growth, particularly for our most desirable advertising inventories, meaning the video accounts, the Mini Programs, the official accounts, Weixin search. And we're deploying ad tech around, we're deploying AI to improve the return to advertisers around those inventories.

正因为流量增长及广告技术进步，收入增速区间处于十几个百分点，而非接近零上下波动；区间内的起伏则包含季度噪声。更宏观地看，如 Martin 所言，我们的流量在增长，尤其是最具吸引力的库存——视频号、小程序、公众号、微信搜索等。我们围绕这些库存部署广告技术和 AI，以提升广告主回报。

Martin Lau

刘炽平

Yeah, well, just to add to that, the way we look at our advertising business is that there is a very long runway and all we do is try to extend the runway rather than to manage the growth rate on a quarter-to-quarter basis. If we can actually keep on improving our ad tech, that extends the runway. If we can keep on increasing the traffic, right, and a lot of it is actually driven by AI as well, right, because when we have all these users coming to our video accounts, we still have a lot of people who come in and then watch it for a very short period of time and then leave. If we can actually figure out the right content to push to them through AI, then it can actually increase on the user time by pretty significant level. Then when we have that, we cannot necessarily increase our ad load, we can just rely on the natural growth of the traffic and that would carry the revenue growth and we can reserve the new ad load for a later time so that our runway is extended again. And at the same time then by having less advertising, we can actually make our product experience better and that's another competitive advantage that forms a virtual cycle. So I think that's the way we think about our advertising business. And over time, if we can actually build a stronger transaction ecosystem within our Weixin ecosystem, right, so more and more merchants can actually advertise, and once the click-through rate happen, then it leads to transactions very easily. Then basically the propensity for advertisers to spend with us would go up, and the value of each click would go up. Right? So there are a lot of these systemic things that we're doing in order to extend the runway of our advertising business, which we believe if you take a high-level view, there is a very long runway and we are continuously working to extend that. On AI. I think right now, just within the past quarter, we actually grew our Yuanbao user base by a lot. And we spent a lot of time in making sure that we can retain them, which I think we have proven ourselves to be able to retain the users and provide them with good enough experience so that they keep coming back and they keep using Yuanbao more. I think when you talk about the new product form factor, it really – chat is the predominant one at this point in time. But then when we roll out more functionalities, then the user interface and the format may be different. When you try to execute a complicated task for users, then it may become a project rather than a chat and you may have to have that task stay there for a longer time. So we would be customizing the form factor, the user experience, according to what kind of functionalities that we are providing. But I think the next stage for Yuanbao is that – the current stage is that we are at scale. We have large enough number of users and we have got to a stage that we can actually retain these users. The second stage is that we still have a lot of functionalities that we can add which would help us to retain and activate users better and also to help us to attract new users. So that will be the next stage of the development for our AI product. And then the next thing is really to leverage our unique ecosystem, be it social, be it content, be it Mini Programs, in order for us to provide something that's very well differentiated from the other AI products and AI chatbots in the market. And of course, while we do all these, we will continue to upgrade our Huanyuan model so that we can make the dual model strategy even stronger. So I think these are the kind of things that we'll be doing.

补充一句，我们看待广告业务的思路是跑道很长，我们做的一切都是延长跑道，而非逐季管理增速。持续提升广告技术可延长跑道；不断增加流量——其中很大部分由 AI 驱动：大量用户进入视频号，许多人短暂观看即离开，若通过 AI 精准推送内容，可显著延长观看时长。在此基础上，我们无需立即提高广告加载率，仅凭流量自然增长即可推动收入增长，并将新增广告位保留到未来，从而再次延长跑道；同时广告减少还能改善产品体验，形成良性循环。若能在微信生态内构建更强的交易体系，吸引更多商家投放广告，当点击发生便可轻松转化为交易，广告主投放意愿和每次点击价值都会提升。这些系统性工作都是为延长广告业务跑道——从宏观视角看，跑道非常长，我们将持续发力。至于 AI 方面，仅在过去一个季度，我们已大幅扩大元宝用户基数，并投入大量精力确保留存，现在已证明能留住用户并提供足够好的体验，使其不断回访、增加使用。当前聊天仍是主要形态，但随着功能增多，界面和形式也会变化：执行复杂任务可能更像一个长期项目而非对话，我们会根据功能定制形态和体验。元宝下一阶段发展：一是规模已成，用户基数与留存达标；二是仍有大量功能可加入，以更好留存、激活并吸引新用户；三是充分利用微信独特的社交、内容、小程序生态，打造与市面其他 AI 产品差异化优势。同时，我们会持续升级“混元”模型，强化双模型战略。大体上，这就是我们的计划。

Wendy Huang

黄雯迪

Thank you. We will take the last question from Ronald Keung from Goldman Sachs.

感谢各位。我们将接受来自高盛的罗纳德·姜的最后一个提问。

Ronald Keung

罗纳德·姜

Thank you, Wendy. So, thank you, Pony, Martin, James and John. Two questions. One is on our WeChat e-commerce strategy. Just want to hear what are the key KPIs that we see and is there a plan or timeline for maybe shelf-based offering versus today which is live stream search as the main formats? Second is on payment. I see management noted a slight decline in the payment volumes in 1Q. So are these more macro related or is it a payment strategy which because you've also mentioned some improvement in April? Thank you.

谢谢你，Wendy。也感谢 Pony、Martin、James 和 John。我有两个问题。第一关于我们的微信电商策略：我们关注的核心 KPI 是什么？未来是否有从当前以直播和搜索为主，转向货架式电商的计划或时间表？第二个问题是支付业务：管理层提到一季度支付交易量小幅下降，这是宏观因素引起的，还是出于支付策略考虑？你们也提到四月份有所改善，能否进一步说明？谢谢。

Martin Lau

刘炽平

In terms of e-commerce strategy, I don't think we operate by setting prescriptive KPIs. This is a very long-term project with very long runway. Again, I keep on going back to the same term runway because we felt it's much more important for us to make sure that the business can keep growing for a very long time rather than sort of go for these sprints so that you have a KPI and then sort of you need it. So in terms of how we built the runway, we have a number of initiatives that's going on. The number one priority is really sort of improving the basic shopping experience for consumers such as we need to have higher quality products, we need to have return policy that's convenient for them. We need to have a good customer service process. We need to have good pricing for these consumers. So that's one. Number two is that we want to get more supplies of good products, supply of good brands, and motivated merchants into our ecosystem so that the supply side can keep improving. The third one is really to get more traffic to the merchants and provide more chances for consumers to interact with products and with the merchants. And the first step is really growing traffic through live broadcasts. I think that's one way through which we can really convert more sales and it's actually well-proven. So this is something which other platforms have already done. And I think this is more like a no-regret things that we can do. But at the same time, over time, we actually want to have something unique for the Weixin ecosystem, which is we can connect users to products through our many different modules within the Weixin ecosystem, such as Mini Programs. We know that there are a lot of users who are already buying products through Mini Programs. And if we can actually convert some of these transactions to Mini Shops, and because of there's better infrastructure of supporting e-commerce transactions within Mini Shops, we can actually magnify the transactions and it will be helpful for users, it will be helpful for the merchants. There's social component, there's communication component that there's a connection to moments, there's a connection to search. Like, on the social side, it’s -- we said the gifting part is one functionality that we added and there'll be more to be added and connected to official accounts. So, there are a lot of potential connections that we can add. And over time these connections would start delivering more transactions to the merchants in a very unique way. So, that's the kind of things that we're doing in order to grow our Mini Shop and Weixin e-commerce ecosystem over the long term. And I'm happy to say even as these are the things that we're doing in the first inning, we continue to see very strong growth in our Mini Shop transaction GMV.

关于电商策略，我们并不是通过设定严格 KPI 来运作的。这是一项极其长期、跑道很长的项目。我反复强调“跑道”这个词，因为对我们而言，让业务长期可持续增长远比短跑式冲 KPI 更重要。为延长跑道，我们正在推进多项举措。首要任务是提升消费者的购物基础体验：提供更高品质的商品、便利的退货政策、完善的客服流程以及更具竞争力的价格。第二，我们要引入更多优质商品和品牌，让更多积极的商家加入生态，从而持续提升供给侧。第三，则是为商家导入更多流量，并创造更多机会让消费者与商品及商家互动。首要抓手便是通过直播带货引流，实践证明这能有效转化销售，且其他平台已成熟应用，是“零悔”措施。同时，我们希望打造微信生态独有的电商模式，通过小程序等模块将用户与商品连接。大量用户已在小程序购物，若能将部分交易转至“小商店”，凭借其更完善的电商基础设施，可进一步放大交易规模，实现对用户和商家的双重利好。微信生态还具备社交、通讯、朋友圈、搜索等连接，礼品功能只是新增的一项，未来还会更多功能与公众号等打通。这些潜在连接将逐步以独特方式为商家带来更多交易。正是基于这些长期举措，我们的小商店 GMV 仍在强劲增长。

James Mitchell

詹姆斯·米切尔

And on your question about commercial payment volume, then our market share could fluctuate depending on the level of subsidies, depending on how aggressive we are in accepting credit card funded transactions and so forth. But in reality, we don't make dramatic changes on a month-to-month basis. So, we didn't dial up our level of competitive intensity moving from the first quarter to April. And so I think the big picture is that consumer spending has been fluctuating in the last several quarters, but the most recent data point is a fluctuation upward. And so it is possible that fluctuation upward is reflective of overall consumer confidence and consumption activity stabilizing. And we hope that over time that stabilization becomes a sustained upturn. But, of course, time will tell.

关于商业支付交易量，我们的市场份额会因补贴力度、接受信用卡交易的积极程度等因素而波动，但实际上我们不会逐月大幅调整竞争强度，因此一季度到四月并未明显提价或降价。整体来看，过去几个季度消费者支出在波动，最新数据显示呈上升趋势，可能反映整体消费信心和活动趋稳。我们希望这种稳定最终转化为持续回升，但还需时间检验。

Martin Lau

刘炽平

Well, if I can answer it sort of slightly adding more color, I think when we look at the first quarter, we see the number of transactions continue to go up, but then the pricing actually goes down. Right? And our hypothesis is that it could be a little bit of the last leg of your supply side competition as the demand side starts to warm up. And I think the April trend somewhat confirms it. But that's really before the tariffs start kicking in. So, without the tariff, I think we clearly see that the consumption pattern has bottomed out and start to slowly recover. But now with the interaction with the tariff, I think we just have to see what will be happening in the next quarter. And it's very dynamic, right? There's tariff, but then what's the extent of the tariff? And then I think the government actually is very supportive with stimulus and I think the Chinese government still have a lot of room for rolling out more stimulus. And now there's a little bit of a choose on the tariff side. So, I think tariff and the interplay of that, the impact of it on the economy and then the counter effect of the stimulus would be the two factors to watch.

再补充一点颜色：一季度我们看到交易笔数持续增长，但单笔价格下降。我们推测这或许是供给侧竞争的最后阶段，而需求端正在回暖，四月趋势部分印证了这一点，不过这是在关税实施前的情况。如果没有关税，我们清晰看到消费已经触底并缓慢复苏。但现在要考虑关税因素：关税会怎样实施、力度多大？与此同时，政府在刺激方面非常支持，中国政府仍有充足空间推出更多刺激措施。目前关税存在一些选择性，关税影响与刺激政策的对冲作用，是接下来需要关注的两大因素。

Wendy Huang

黄雯迪

Thank you. We are now ending the webinar. Thank you all for joining our results today. If you wish to check out our press release and other financial information, please visit the IR section of our company website at [www.tencent.com](http://www.tencent.com). A replay of this webinar will also soon be available. Thank you and see you next quarter.

谢谢各位。本次业绩发布会到此结束。若您需查阅我们的新闻稿及其他财务信息，请访问公司官网投资者关系版块 [www.tencent.com。本次会议的回放也将很快上线。谢谢大家，下季度再见。](http://www.tencent.com。本次会议的回放也将很快上线。谢谢大家，下季度再见。)