中期 報告 INTERIM REPORT 2024 中期報告 目 錄 | 公司資料 | 2 | | --- | --- | | 財務及業務摘要 | 4 | | 管理層討論與分析 | 5 | | 其他資料 | 15 | | 中期財務資料的審閱報告 | 25 | | 釋義 | 55 | 雲音樂 2024 年中期報告 2 公司資料 董事會 執行董事 丁磊先生 （主席兼首席執行官） 李勇先生 非執行董事 李日強先生 鄭德偉先生 （於2024年2月15日辭任非執行董事） 王冉先生 （於2024年5月23日辭任非執行董事） 獨立非執行董事 盧英傑先生 顧險峰先生 許忠先生 審計委員會 盧英傑先生 （主席） 顧險峰先生 許忠先生 薪酬委員會 許忠先生 （主席） 顧險峰先生 盧英傑先生 提名委員會 顧險峰先生 （主席） 盧英傑先生 許忠先生 公司秘書 黃慧兒女士 授權代表 李勇先生 黃慧兒女士 核數師 羅兵咸永道會計師事務所 執業會計師及註冊公眾利益實體核數師 香港中環 太子大廈22樓 註冊辦事處 P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance expectation relative to the market [5][6]. Core Insights - The company has been included in the Hong Kong Stock Connect list, making it a rare online music investment option for domestic institutions, especially since Tencent Music is not included [5]. - The company reported a significant improvement in profitability, with a 166% year-over-year increase in adjusted net profit for the first half of 2024, reaching 880 million RMB [5]. - The online music segment saw a revenue increase of 27% year-over-year, driven by a 25%+ growth in monthly active paying users [5]. - The company is focusing on its core music content and has reduced its social entertainment business, leading to improved profitability metrics [5][6]. Financial Data and Earnings Forecast - The company achieved a revenue of 4.07 billion RMB in the first half of 2024, with a year-over-year growth of 4% [5]. - The adjusted net profit forecast for 2024-2026 has been revised upwards, with expected figures of 1.5 billion, 1.8 billion, and 2.0 billion RMB respectively [6]. - The projected price-to-earnings (PE) ratios for 2024-2026 are 12x, 10x, and 9x, respectively, indicating a favorable valuation compared to peers [6]. - The target price has been raised from 111 HKD to 116 HKD, reflecting a 28% upside potential [6].

在线音乐收入增长超预期 ——云音乐（9899.HK）24H1 点评 核心观点 ⚫ 24H1 营收 40.7 亿(yoy+4.1%, hoh+3%)，主要系会员订阅收入因付费会员数增长 提升。我们预期 24H2 达 40 亿（yoy+1%），主要系直播业务首页流量权重调整影 响。24H1 毛利率 35%（yoy+10pp，hoh+6pp），主要系业务规模的扩大、核心在 线音乐业务的强劲商业化表现带来经营杠杆持续提效，以及版权成本的一次性调 整。 24H1 销售费用 4 亿(yoy-0%,hoh-5%)。24H1 管理费用 0.9 亿 (yoy+24%,hoh3%)，主要系僱员福利费用增加。24H1 研发费用 4 亿 (yoy-10%,hoh-8%)。主要系 技术资源利用率提高。 24H1 归母净利润（IFRS）8.1 亿（yoy+176%,hoh+84%)， 我们预期盈利能力随着会员收入提升持续优化。 ⚫ 24H1 在线音乐收入 26 亿(yoy+27%, hoh+10%)，主要系在线音乐月付费用户增 加，如持续致力拓宽与音乐版权方的合作，完善了平台的韩国音乐内容库，并与音 乐厂牌建立深入的伙伴关系等。我们预期 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 151.86 HKD [5][3] Core Insights - In H1 2024, the company's revenue reached 4.07 billion (yoy +4.1%, hoh +3%), primarily driven by growth in paid membership subscriptions. H2 2024 revenue is expected to be around 4 billion (yoy +1%) due to adjustments in the homepage traffic weight for live streaming [2] - The gross margin for H1 2024 was 35% (yoy +10pp, hoh +6pp), attributed to business scale expansion and strong commercialization of core online music services, along with a one-time adjustment in copyright costs [2] - The net profit attributable to the parent company for H1 2024 was 810 million (yoy +176%, hoh +84%), with expectations for continued improvement in profitability as membership revenue increases [2] - Online music revenue in H1 2024 was 2.6 billion (yoy +27%, hoh +10%), driven by an increase in monthly paying users and enhanced partnerships with music copyright holders. H2 2024 online music revenue is projected to reach 2.75 billion (yoy +18%) [2] - Social entertainment revenue in H1 2024 was 1.5 billion (yoy -20%, hoh -7%), reflecting a more cautious operational strategy by management. H2 2024 social entertainment revenue is expected to decline to 1.24 billion (yoy -24%) [2] - The company was included in the Hang Seng Composite Index, effective September 9, 2024, which may lead to its inclusion in the Hong Kong Stock Connect investment scope [2] Financial Forecasts - The forecasted net profits for the company are 1.5 billion, 1.77 billion, and 2.02 billion for the years 2024, 2025, and 2026 respectively. The estimates for 2024 and 2025 were adjusted upwards due to better-than-expected H1 2024 performance [3] - The average P/E ratio for comparable companies in 2025 is estimated at 17 times, supporting the target price of 151.86 HKD [3] Key Financial Metrics - The company's revenue for 2024 is projected at 8.054 billion, with a growth rate of 2.4% [4] - The gross margin is expected to improve to 33.9% in 2024, with net profit margins projected at 18.7% [4] - The company’s P/E ratio is forecasted to be 12.6 in 2024, indicating a potential undervaluation compared to peers [4]

交银国际研究 公司更新 | --- | --- | --- | |------------|-------------|----------| | 收盘价 | 目标价 | 潜在涨幅 | | 港元 92.85 | 港元 120.00 | +29.2% | 云音乐 (9899 HK) 上半年利润超预期，核心音乐会员业务维持稳健 2024 上半年利润超预期。2024 上半年云音乐收入 40.7 亿元（人民币，下 同），同/环比增4%/3%，主要受音乐业务拉动，基本符合我们/市场预期。 剔除版权成本一次性调整影响，毛利率同/环比扩 8/4 个百分点，受益于在 线音乐规模效应、自制增加以及社交收入分成比例收窄。经调整净利润 8.8 亿元，好于市场预期的 6.2 亿元，主要因费用优化好于预期。 音乐业务维持稳健增长，持续聚焦规模扩张及用户体验优化：1）会员订 阅收入同比增25%，公司不再披露MAU、会员等运营数据，但分享将通过 增加差异化内容供给及升级产品/会员功能发力用户和会员规模增长，预 计人均付费（ARPPU）或相对持稳。2）非会员收入同比增 33%，主要受 广告拉动，激励广告开始贡献收入增量。 展望：我们预计 2 ...

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 4,070,493 thousand, representing a 4.1% increase compared to RMB 3,908,380 thousand in the same period of 2023[6]. - Gross profit for the same period was RMB 1,425,731 thousand, a significant increase of 47.7% from RMB 965,147 thousand year-over-year[6]. - The company achieved a profit before income tax of RMB 813,578 thousand, marking a substantial increase of 160.8% compared to RMB 311,961 thousand in the previous year[6]. - Net profit for the period was RMB 809,949 thousand, reflecting a remarkable growth of 175.7% from RMB 293,750 thousand in the prior year[6]. - Adjusted net profit, which excludes certain equity settlement items, reached RMB 880,749 thousand, up 165.4% from RMB 331,893 thousand in the same period last year[6]. - Operating profit surged to RMB 599,933,000, a substantial rise from RMB 104,611,000 in 2023, representing an increase of 472.5%[47]. - Basic earnings per share for the first half of 2024 were RMB 3.88, compared to RMB 1.39 in 2023, reflecting a growth of 179.1%[48]. - The company's profit attributable to equity holders for the six months ended June 30, 2024, was RMB 809,832,000, a significant increase from RMB 293,750,000 in the same period of 2023, representing a growth of 175.5%[47]. - Adjusted net profit for the same period was RMB 880,749,000, compared to RMB 331,893,000 in 2023, reflecting a year-over-year increase of 164.5%[47]. - Total revenue for the first half of 2024 reached RMB 4,070,493,000, up from RMB 3,908,380,000 in 2023, marking an increase of 4.1%[47]. Revenue Breakdown - Online music service revenue increased by 26.6% to RMB 2,559.7 million, driven by a rise in subscription sales[30]. - Social entertainment service revenue decreased by 19.9% to RMB 1,510.8 million, reflecting a more cautious operational strategy[31]. - The cost of content services decreased to RMB 2,014,439, down 16% from RMB 2,399,396 in 2023[60]. - Total comprehensive income for the first half of 2024 was RMB 850,054,000, compared to RMB 528,113,000 in 2023, indicating an increase of 60.9%[48]. User Engagement and Content Strategy - Subscription revenue grew by 25.5% year-over-year, driven by an increase in the number of subscribers[12]. - Daily active users to monthly active users ratio remained above 30%, indicating strong user engagement[11]. - The company is focusing on expanding its content library, particularly in niche music genres like rap, to cater to diverse user preferences[12]. - The company expanded its music label library in the first half of 2024, collaborating with major Korean labels like JYP Entertainment and Kakao Entertainment, as well as Chinese labels like KC DIGITAL and Guoran Entertainment[16]. - The platform registered over 732,000 independent musicians by June 2024, with approximately 3.6 million music tracks uploaded, enhancing the support system for emerging musicians, particularly in niche genres like rap[17]. - The average listening time for long audio content per user increased by 49.4% in the first half of 2024, driven by enhanced quality content attracting long audio users and encouraging deeper consumption[20]. - The company focused on producing popular rap tracks and successfully launched several well-received songs, including the Henan dialect rap song "5:20 AM" and the instrumental piece "Farewell Letter" in the first half of 2024[21]. - The company enhanced user experience by optimizing music discovery and listening experiences, contributing to increased user engagement and retention[24]. - The company actively expanded its PGC long audio content reserve, including self-produced audio dramas that resonated well with the young user demographic, proving effective in attracting new users[22]. - The company strengthened partnerships with copyright holders, enhancing the content supply of niche music genres to cater to the preferences of its young audience[15]. - The company implemented product innovations and optimizations in the "NetEase Cloud Music" app, focusing on personalized content recommendations and community engagement, which improved user experience and interaction[23]. Cost Management and Financial Health - Operating costs decreased by 10.1% to RMB 2,644.8 million, primarily due to a reduction in content service costs[32]. - Research and development expenses decreased by 10.2% to RMB 395.6 million, attributed to improved resource utilization[37]. - Financial net income increased to RMB 214.4 million from RMB 208.6 million, due to a continuous increase in deposit amounts[40]. - Tax expenses decreased significantly from RMB 18.2 million in 2023 to RMB 3.6 million in 2024, mainly due to reduced withholding tax on interest income[41]. - Cash and cash equivalents decreased to RMB 2,560,079,000 from RMB 4,020,400,000 at the end of 2023, a decline of 36.3%[50]. - The company's total equity attributable to equity holders increased to RMB 9,309,325,000 from RMB 8,440,902,000, reflecting a growth of 10.3%[52]. - Total assets as of June 30, 2024, amounted to RMB 12,448,703,000, an increase from RMB 11,610,551,000 at the end of 2023, representing a growth of 7.2%[50]. Corporate Governance and Compliance - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, with the exception of the separation of roles between the Chairman and CEO, which is currently held by Mr. Ding Lei[76]. - The interim financial results for the six months ended June 30, 2024, have been reviewed by the audit committee and are unaudited, with no disagreements on accounting treatment between the board and the audit committee[77]. - The company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[76]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[77]. - The company will reassess the separation of roles between the Chairman and CEO in the future, considering the overall situation of the group[76]. - The company did not declare or pay any dividends for the six months ended June 30, 2024, and 2023[69]. - The board has decided not to declare an interim dividend for the reporting period[80]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[78]. - The interim results announcement will be published on the Hong Kong Stock Exchange website and the company's website, with timely distribution to shareholders upon request[81]. - The company expects to utilize the remaining net proceeds from the global offering within the next 30 months[79].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 120.00, indicating a potential upside of 11.8% from the current closing price of HKD 107.30 [9]. Core Insights - The first quarter gross margin exceeded expectations, leading to an upward revision of the full-year profit forecast. The company reported a revenue of RMB 3.96 billion for Q1 2024, a year-on-year increase of 3.6%, which aligns with expectations. The gross margin improved by 11 and 3 percentage points year-on-year and quarter-on-quarter, respectively, benefiting from economies of scale in online music, optimized copyright costs, and a reduced revenue-sharing ratio from social income [1][5]. - Membership growth is expected to slightly outperform previous forecasts, with a projected year-on-year increase of 21% in the first half of the year. The average revenue per paying user (ARPPU) is expected to increase by 2% year-on-year, remaining stable quarter-on-quarter [1][5]. - The product revamp focuses on enhancing the core music user experience, although social income may continue to face pressure in the short term. The company has slightly lowered its full-year social income forecast due to a contraction in live streaming traffic [1][5]. - There is still potential for further gross margin improvement as the company continues to expand its copyright content coverage, including partnerships with Korean entertainment companies JYP and Kakao [1][5]. - Based on the better-than-expected gross margin optimization, the adjusted net profit forecast for 2024 has been raised to RMB 1.1 billion, with a target price adjustment based on a 20x P/E ratio for comparable music and copyright companies [1][5]. Financial Summary - Revenue projections for the company are as follows: RMB 7.996 billion for 2024, RMB 8.878 billion for 2025, and RMB 9.921 billion for 2026, with corresponding year-on-year growth rates of 1.6%, 11.0%, and 11.7% respectively [4][10]. - The net profit is expected to be RMB 1.141 billion in 2024, RMB 1.270 billion in 2025, and RMB 1.617 billion in 2026, with significant growth from a loss of RMB 115 million in 2022 to a profit in subsequent years [4][10]. - The gross margin is projected to improve from 27% in 2023 to 34% in 2024, maintaining at 34% in 2025 and increasing to 36% in 2026 [5][10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights a significant increase in gross margin for Q1 2024, attributed to a one-time adjustment in copyright costs, increased subscription revenue, and ongoing cost control improvements. The gross margin reached 38%, a year-on-year increase of 15.6 percentage points [5] - The company is expected to continue its profitability growth trajectory, with projected net profits for 2024-2026 being 1.008 billion, 1.281 billion, and 1.444 billion respectively, corresponding to EPS of 4.7, 6.0, and 6.7 [5] - The report emphasizes the company's strategy of enriching its content library through original support, self-produced music, and copyright acquisitions, which has led to successful hits and collaborations with major global music labels [6] - The integration of AI technology in music production and consumption is expected to enhance efficiency and open new growth avenues, potentially lowering content production costs and expanding monetization opportunities [7] Summary by Sections Financial Performance - In Q1 2024, the company achieved total revenue of 2 billion (up 3.6% year-on-year, up 2.2% quarter-on-quarter) and gross profit of 770 million (up 75.6% year-on-year, up 28.3% quarter-on-quarter) [5] - The gross margin for Q1 2024 was reported at 38%, reflecting a substantial improvement due to copyright cost adjustments [5] Content Strategy - The company is focusing on three main paths to enrich its content: supporting original works, producing self-made music, and acquiring copyrights. This strategy has led to notable successes, including award nominations and popular songs [6] - The return of popular Korean music copyrights to the platform has further enhanced its content offerings [6] AI Integration - The company is deepening the application of AI in the music creation process, providing tools that assist users in music production, which is expected to lower barriers to entry and increase user engagement [7]

Financial Performance - Revenue decreased by 12.5% from RMB 8,992,221,000 in 2022 to RMB 7,866,992,000 in 2023[5] - Gross profit increased by 62.6% from RMB 1,293,118,000 in 2022 to RMB 2,102,670,000 in 2023[5] - Adjusted net profit for 2023 was RMB 818,500,000, compared to an adjusted net loss of RMB 114,573,000 in 2022[7] - Net profit for 2023 was RMB 734.2 million, a significant turnaround from a net loss of RMB 221.5 million in 2022[42] - The company achieved an adjusted net profit of RMB 818.5 million in 2023, marking its first annual profit compared to an adjusted net loss of RMB 114.6 million in 2022[12] - The company's revenue decreased by 12.5% from RMB 8,992.2 million in 2022 to RMB 7,867.0 million in 2023[31] - Operating costs decreased by 25.1% from RMB 7,699.1 million in 2022 to RMB 5,764.3 million in 2023, primarily due to reduced content service costs[33] - Financial income increased significantly from RMB 183.1 million in 2022 to RMB 437.9 million in 2023, attributed to rising interest rates on fixed deposits[40] User Engagement and Growth - Monthly active users for online music services increased to 205.9 million in 2023 from 189.4 million in 2022[9] - Paid subscribers for online music services rose to 44.12 million in 2023 from 38.27 million in 2022[9] - Monthly ARPU (Average Revenue Per User) for online music services increased from RMB 6.6 in 2022 to RMB 6.9 in 2023[9] - The total number of monthly active users reached 205.9 million, representing an 8.7% year-over-year growth, attributed to enhanced user experience and differentiated premium content[13] - The platform's daily active users to monthly active users ratio remained above 30%, indicating strong user engagement[14] - The company’s long audio content consumption increased by 70.9% compared to the previous year, indicating significant growth in user engagement[23] Product and Service Development - The company plans to enhance user engagement through differentiated products and innovative features[11] - The company expanded its music library to approximately 149 million songs by the end of 2023, focusing on diverse music genres to meet user preferences[16] - The company launched the "Cloud Ladder Plan 2023 Phase 1" at the beginning of 2023, optimizing revenue support for musicians with a more attractive settlement mechanism[21] - In September 2023, the company introduced the "Cloud Ladder Plan 2023 Phase 2" and a new "Appreciation" feature, enhancing interaction between musicians and fans, providing new monetization avenues for independent musicians[21] - The company introduced the "Private DJ" feature, combining music recommendations with personalized music introductions, enhancing user experience[25] - The company has developed AI-assisted tools for music creation, making the process more efficient and accessible for musicians[21] - The company has diversified its audio content offerings, including user-generated podcasts and professional content like audiobooks and radio dramas[23] Financial Management and Liquidity - The cash and cash equivalents increased to RMB 4.02 billion as of December 31, 2023, up from RMB 2.91 billion in 2022, indicating improved liquidity[45] - Operating cash inflow before changes in working capital was RMB 487.4 million in 2023, a recovery from an outflow of RMB 239.5 million in 2022[45] - The company reported a net cash increase of RMB 1.11 billion for the year, reflecting strong cash flow management[45] - The company aims to mitigate potential liquidity risks associated with a significant decrease in user numbers for online music and/or social entertainment services[45] Corporate Governance - The company is committed to maintaining compliance with the Hong Kong Stock Exchange regulations through its corporate governance practices[140] - The board includes independent directors with diverse expertise, such as Mr. Gu Xianfeng, a tenured professor at Stony Brook University[136] - The company has established a compensation committee to assist the board in formulating remuneration policies for directors and senior management[85] - The company has implemented a strict securities trading policy for directors and related insiders, confirming compliance during the reporting period[178] - The company has established three committees (audit, remuneration, and nomination) to oversee specific aspects of its affairs, each with a defined written scope of authority[191] Strategic Partnerships and Collaborations - The company successfully collaborated with top artists, achieving outstanding sales performance for albums, including a digital album by Eason Chan that ranked first across all music streaming platforms in China[18] - The company expanded its collaboration with NetEase games, embedding music players into popular game scenarios, enhancing user interaction with music[27] - The company provides services to NetEase Group, including traffic directing services for products and services published on its platform[108] Employee and Shareholder Information - The company employed 1,359 employees as of December 31, 2023, down from 1,540 employees in 2022[75] - The total employee compensation cost for the year was RMB 1,154.0 million, a decrease from RMB 1,203.2 million in the 2022 fiscal year[76] - The company has two active equity incentive plans: the 2016 Plan and the 2022 Restricted Share Unit Plan[151] - The purpose of the equity incentive plans is to link employee interests with shareholder returns and enhance business success[152] Risks and Compliance - The company faces significant uncertainty regarding the sustainability of its current corporate structure and operations due to the Foreign Investment Law[91] - Risks associated with the company's contractual arrangements include potential penalties from the Chinese government if agreements are deemed non-compliant with regulations[90] - The company relies on contractual arrangements with its VIE and its shareholders to conduct business in China, which may not be as effective as direct equity ownership[90]

Investment Rating - The report maintains a "Buy" rating for the company [2][5][6] Core Insights - The company achieved a revenue of 7.87 billion RMB in 2023, a year-over-year decrease of 13%, but the Non-IFRS net profit turned positive at 820 million RMB compared to a loss of 115 million RMB in 2022, indicating a significant recovery [5][6] - The online music segment saw a revenue increase of 18% year-over-year, reaching 4.4 billion RMB, driven by a 15% growth in paid users to 44.12 million, resulting in a paid user rate of 21.4% [5][6] - The company is refocusing on its core online music business, with a major app redesign planned for 2024 to enhance music discovery and community engagement [5][6] Financial Performance and Forecast - The comprehensive gross margin improved to 26.7% in 2023, with a notable increase to 28.7% in the second half of the year, attributed to reduced live streaming revenue sharing and scale effects from online music growth [6][7] - Revenue forecasts for 2024 and 2025 have been adjusted to 8.1 billion RMB and 9 billion RMB respectively, down from previous estimates of 12.9 billion RMB and 14.2 billion RMB, while Non-IFRS net profit forecasts have been raised to 940 million RMB and 1.14 billion RMB for the same years [6][7] - The target price is set at 111 HKD, reflecting a 22% upside potential from the current price [6][7]