2025-08-12 11:37Financial Performance - Total revenues for Q2 2025 were RMB8.44 billion (US$1.18 billion), a 17.9% year-over-year increase, driven by strong growth in online music services[4] - Revenues from online music services reached RMB6.85 billion (US$957 million), representing a 26.4% year-over-year growth, with music subscription revenues at RMB4.38 billion (US$611 million), up 17.1% year-over-year[4] - Net profit attributable to equity holders was RMB2.41 billion (US$336 million), reflecting a 43.2% year-over-year growth, while non-IFRS net profit was RMB2.57 billion (US$359 million), a 37.4% increase[4] - Total operating profit for Q2 2025 was RMB2.98 billion (US$416 million), representing a 35.5% year-over-year increase[15] - Gross profit for the three months ended June 30, 2025, was RMB 3,749 million, a 24.6% increase from RMB 3,010 million year-over-year[28] - Operating profit for the three months ended June 30, 2025, rose to RMB 2,978 million, reflecting a 35.4% increase from RMB 2,198 million in the same quarter of 2024[28] - Profit for the period attributable to equity holders of the Company for the three months ended June 30, 2025, was RMB 2,409 million, up 43.3% from RMB 1,682 million year-over-year[28] - Non-IFRS net profit for the three months ended June 30, 2025, was RMB 2,640 million, a 33.0% increase compared to RMB 1,985 million in the same period of 2024[30] - Basic earnings per share for Class A and Class B ordinary shares increased to RMB 0.79 for the three months ended June 30, 2025, compared to RMB 0.54 in the same period of 2024[29] User Engagement - SVIP subscribers surpassed 15 million, indicating strong user loyalty and engagement[3] - Monthly ARPPU for online music increased to RMB11.7 from RMB10.7 in Q2 2024, marking a 9.3% growth[5] - The company launched innovative features such as VIPER HiFi sound quality and AI Chorus function to enhance user experience and engagement[14] Revenue Breakdown - Revenues from social entertainment services decreased by 8.5% to RMB1.59 billion (US$222 million) compared to RMB1.74 billion in Q2 2024[14] - Online music services revenue increased to RMB 6,854 million for the three months ended June 30, 2025, up 26.4% year-over-year from RMB 5,424 million[28] - Total revenues for the three months ended June 30, 2025, reached RMB 8,442 million, representing a 17.9% increase compared to RMB 7,160 million in the same period of 2024[28] Expenses and Cash Flow - Total operating expenses for the three months ended June 30, 2025, were RMB 1,156 million, a marginal increase from RMB 1,148 million year-over-year[28] - Interest income for the three months ended June 30, 2025, was RMB 254 million, down from RMB 304 million in the same period of 2024[28] - Net cash provided by operating activities for the three months ended June 30, 2025, was RMB 1,638 million, down from RMB 2,944 million in the same period of 2024, a decrease of approximately 44.4%[35] - The Company reported a net cash used in investing activities of RMB (633) million for the three months ended June 30, 2025, compared to RMB 693 million provided in the same period of 2024[35] Assets and Liabilities - Total assets increased from RMB 90,444 million as of December 31, 2024, to RMB 107,873 million as of June 30, 2025, representing a growth of approximately 19.3%[33] - Total equity attributable to equity holders of the Company rose from RMB 67,863 million as of December 31, 2024, to RMB 83,878 million as of June 30, 2025, an increase of about 23.6%[33] - Non-current liabilities increased from RMB 4,168 million to RMB 5,002 million, reflecting a rise of approximately 19.9%[34] - Total liabilities rose from RMB 20,718 million to RMB 21,498 million, an increase of about 3.8%[34] - The Company’s goodwill increased from RMB 19,647 million to RMB 20,465 million, reflecting a growth of approximately 4.2%[33] Cash and Cash Equivalents - Total cash, cash equivalents, term deposits, and short-term investments as of June 30, 2025, were RMB34.92 billion (US$4.87 billion)[19] - Cash and cash equivalents decreased from RMB 13,164 million at the beginning of the period to RMB 10,999 million at the end of the period, a decline of about 16.5%[35] - Cash and cash equivalents at the end of the period were RMB 10,999 million, down from RMB 12,251 million at the end of the previous quarter[35]