Financial Data and Key Metrics Changes - The company reported its full-year performance for the fiscal year 2021 to 2022 during the conference [1] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the content [1] Market Data and Key Metrics Changes - Information on market data and key metrics changes was not included in the content [1] Company Strategy and Development Direction and Industry Competition - The management team present at the meeting included key figures such as the Chairman and CEO, indicating a focus on leadership in strategic discussions [1] Management Comments on Operating Environment and Future Outlook - Management's comments regarding the operating environment and future outlook were not detailed in the content [1] Other Important Information - The conference was held to discuss the company's annual performance, indicating a commitment to transparency with investors and analysts [1] Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the content [1]

are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press Star 1 on your telephone. Please be advised that today's conference is being recorded. And now, I would like to hand the conference over to Ms. Scarlett Xu, Vice President and Head of Capital Markets. Thank you. Please go ahead, ma'am. Thank you, operator. Good evening and good morning, everyone. Welcome to our first quarter earliest confere ...

Financial Data and Key Metrics Changes - In Q1 2022, total revenue reached 21.1 billion yuan, a year-on-year increase of 23.8% [15][16] - Online marketing service revenue was 11.4 billion yuan, up 32.6% year-on-year, accounting for 53.9% of total revenue [15][16] - Gross profit was 8.8 billion yuan, with a gross margin of 41.7%, an increase from 41.1% in Q1 2021 [16][17] - Operating loss narrowed significantly to 5.6 billion yuan, improving the operating margin from -42.8% in Q1 2021 to -26.8% in Q1 2022 [17][18] Business Line Data and Key Metrics Changes - Daily Active Users (DAU) reached 346 million, a 17% year-on-year increase, while Monthly Active Users (MAU) reached 598 million, up 15% year-on-year [3][4] - E-commerce Gross Merchandise Value (GMV) grew by 47.7% year-on-year, reaching 175.1 billion yuan [10][16] - Live streaming revenue was 7.8 billion yuan, an 8.2% increase year-on-year [12][16] Market Data and Key Metrics Changes - The advertising market faced challenges due to macroeconomic conditions and the pandemic, but the company maintained a strong growth trajectory in its advertising revenue [35][39] - The number of advertisers increased by over 60% year-on-year, indicating a growing interest in the company's advertising offerings [8][39] Company Strategy and Development Direction - The company focuses on differentiated growth strategies, leveraging its social attributes and content discovery mechanisms to enhance user engagement [20][21] - The introduction of the "Fast Brand" strategy aims to cultivate emerging self-operated brands within the e-commerce ecosystem, enhancing user experience and trust [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the recent COVID-19 outbreak on operations but expressed confidence in the company's resilience and ability to capture market share in the long term [27][30] - The company is optimistic about the recovery of its e-commerce business as pandemic control measures improve [29][30] Other Important Information - The company has implemented various support measures for merchants affected by the pandemic, including advertising fee refunds and promotional incentives [9][10] - The organization has undergone structural adjustments to enhance operational efficiency and inter-departmental collaboration [25][26] Q&A Session Summary Question: What drove the unexpected growth in Q1 despite high sales expenses? - Management attributed the growth to differentiated growth strategies, the strong engagement of short videos, and effective organizational adjustments [19][20] Question: Can you share recent developments in the e-commerce sector? - Management noted that while the e-commerce business faced challenges due to the pandemic, it still achieved close to 50% year-on-year growth, with a focus on improving logistics and user experience [27][28] Question: How does the current macroeconomic environment affect advertising growth? - Management acknowledged that the macroeconomic environment poses challenges but emphasized that the company continues to gain market share and maintain strong revenue growth [35][39] Question: What is the potential impact of regulations on the live streaming business? - Management indicated that while regulations are evolving, the company remains focused on enhancing the value of its live streaming offerings and achieving growth targets [38][39]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2022 reached RMB 73.4 billion, with an adjusted net profit of RMB 2.9 billion, which included RMB 425 million in expenses related to smart EV and other new initiatives [2][5][12] - The overall gross margin declined by 1.1 percentage points year-over-year to 17.3%, with smartphone gross margin decreasing to 9.9% [12][13] - R&D expenses increased by 60% year-over-year to RMB 3.5 billion, representing 4.8% of total revenue [3][12][13] Business Line Data and Key Metrics Changes - Smartphone revenue was RMB 45.8 billion, with global shipments of 38.5 million units, maintaining the number three position globally with a market share of 12.6% [5][7][12] - IoT revenue reached RMB 19.5 billion, an increase of 6.8% year-over-year, with a record high gross margin of 15.6% [9][12] - Internet services revenue was RMB 7.1 billion, up 8.2% year-over-year, with advertising revenue growing by 16.2% to RMB 4.5 billion [11][12] Market Data and Key Metrics Changes - Xiaomi maintained its number three position in global smartphone shipments, ranking top three in 49 markets and top five in 68 markets [2][8] - In Mainland China, MIUI MAU reached 136 million, a net increase of 17 million year-over-year [8][11] - Overseas internet services revenue increased by over 70%, contributing nearly 22% of total internet service revenue [3][11] Company Strategy and Development Direction - The company is focusing on optimizing cost structure and improving operational efficiency while investing in new initiatives, including smart EV development [2][4] - Xiaomi continues to strengthen its premium smartphone market position, with a strategy that includes expanding offline retail presence and enhancing user experience through innovative technology [3][6][7] - The company is actively promoting ESG initiatives and has set multiple environmental targets [4][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges from supply shortages, COVID-19, and macroeconomic headwinds, but expressed confidence in the company's resilience and growth potential [2][5] - The outlook for the smartphone market remains uncertain, but improvements in supply and promotional events are expected to drive shipments in the second quarter [15][16] - The IoT business is anticipated to face challenges due to logistical issues and macroeconomic conditions, particularly in Europe, but management remains optimistic about growth opportunities [17][19] Other Important Information - The company has merged various departments to enhance operational efficiency and promote sustainable growth [4][12] - Xiaomi's cash resources remain robust, reaching RMB 95 billion as of the end of March [13] Q&A Session Summary Question: What is the management's take on the demand outlook for smartphones in the following quarters? - Management noted uncertainty in the global environment and COVID-19 impacts but observed potential improvements in supply for Q2, with promotional events expected to drive shipments [15][16] Question: Can you explain the reason for the IoT gross margin improvement to 15.6%? - The improvement was attributed to lower component costs, particularly in the TV business, and higher margins from new product categories [17] Question: How does the company view its competitive strength in Africa and Latin America? - Management highlighted strong growth in Latin America, with a market share of about 15%, and emphasized the potential for further growth through partnerships with carriers [20][21] Question: What impact has the pandemic had on the company's main businesses? - The pandemic, particularly in Shanghai, affected store operations and logistics, but improvements are expected as the situation stabilizes [22][23]

Good day and thank you for standing by. Welcome to Tencent Holdings Limited 2022 first quarter results announcement conference call. At this time, all participants are in the listen only mode. After speakers presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. And please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. And now I'd like to turn the ...

Financial Data and Key Metrics Changes - In Q1 2022, the company reported revenue of $1,842 million, a sequential increase of 16.6% and a year-over-year increase of 66.9% [4][5] - Gross margin for Q1 2022 was 40.7%, up 5.7 percentage points sequentially and 18 percentage points year-over-year [4][5] - Operating profit for Q1 2022 was $536 million, a sequential increase of 27.6% and a year-over-year increase of 330% [4][5] - The company expects Q2 2022 revenue to grow sequentially by 1% to 3% and gross margin to be between 37% and 39% [5][13] Business Line Data and Key Metrics Changes - Revenue by application for Q1 2022: smartphones (29%), smart homes (14%), consumer electronics (23%), and other electronics (34%), with growth of 10% to 30% across categories [12][13] - The share of smartphones and consumer electronics decreased, while smart homes and other categories increased, aligning with market demand and capacity allocation [12][13] Market Data and Key Metrics Changes - The company noted a structural shortage in semiconductor manufacturing capacity, despite a softening demand in consumer electronics [2][9] - Revenue distribution by region in Q1 2022: Mainland China and Hong Kong (68%), North America (19%), and Eurasia (13%), with growth in all regions [12][13] Company Strategy and Development Direction - The company aims to optimize product mix and pricing strategies to enhance average selling prices, which increased by 13% sequentially in Q1 2022 [11][12] - The company plans to continue its strategy of seeking progress in a stable manner, focusing on fulfilling customer commitments [15] Management Comments on Operating Environment and Future Outlook - Management highlighted that the impact of COVID-19 and geopolitical tensions has been mitigated, but the long logistics supply chain remains a challenge [15] - The company expects strong customer demand to persist, with capacity remaining tight throughout the year [15] Other Important Information - The company plans capital expenditures of approximately $32 billion for 2022, with a focus on expanding production capacity [7][8] - The company has implemented various measures to ensure production continuity amid pandemic challenges, including closed-loop operations and logistics management [11][27] Q&A Session Summary Question: What impact has COVID-19 had on sales and maintenance? - Management indicated that the postponement of annual maintenance (APM) could disrupt manufacturing for 5 to 6 days, affecting productivity [16][17] Question: How is the company managing production amid ongoing pandemic challenges? - The company is working to expedite manufacturing to recover lost capacity and has not canceled any customer orders, only delayed some deliveries [18][27] Question: What is the outlook for wafer pricing in the foundry industry? - The company anticipates that rising costs for materials and equipment will impact gross margins, but it is negotiating with customers to adjust pricing accordingly [29][30] Question: How is inventory management affecting customer orders? - Management noted that while some customers are reducing orders due to high inventory levels, demand for critical components remains strong [32][33]