The meeting was convened by a music entertainment group to release its financial report for the first quarter of 2026 and share corporate strategy updates. During the meeting, company executives outlined financial performance and future plans, while emphasizing the interpretation of non-FIS indicators in comparison with the IFIS standard. The conference also features a question-and-answer session for participants to gain insight into company dynamics.

In the face of copyright challenges brought about by AI, the music streaming industry is accelerating its diversified business models, deepening cooperation with creators, copyright owners and regulatory agencies, and strengthening copyright protection. At the same time, by optimizing the music catalog, enhancing the attractiveness of classics and newly released works, and deepening cooperation with film and television and other fields, unlock IP value and promote the sustainable development of the industry.

It discusses the application of AI in the music industry, including accelerating the creative process, improving the quality and cost-effectiveness of works, and stimulating the interest of young audiences through AI reinterpretation of classic works, thereby enhancing the commercial value of IP. At the same time, it shared successful cases of deepening cooperation with artists and IP through the combination of virtual and physical strategies, as well as expanding cultural and commercial influence through large-scale performances.

The dialogue focused on the global impact of Chinese music and emphasized the importance of music copyright governance, long-term value creation and sustainable development. A number of initiatives were mentioned, including the release of ESG reports, enabling product innovation and value chain sustainability improvements, aimed at promoting the long-term healthy and stable development of the music industry and exploring new opportunities in the creative economy.

The music platform is enhancing user stickiness and lifecycle value by deepening its integration with the WeChat ecosystem, using AI to enhance the recommendation system, and introducing membership. At the same time, explore IP-driven offline business growth through rich content and benefits, such as limited digital albums, physical peripherals, and offline immersive experiences, in order to consolidate a dominant position in a highly competitive market.

The first quarter financial report announced that the company achieved a year-on-year growth of 7%, member service revenue increased by 12%, and advertising revenue performed steadily. New fan club members, strengthen platform and content integration strategy, improve user experience. Optimize advertising models, increase user payment rates, and improve advertising efficiency. Cost efficiency of IP-related services improved and gross margin increased. In the future, the marketing strategy will be adjusted according to the market dynamics to maintain the competitiveness of the industry.

Reported the company's first quarter financial performance, including profits, expenses and cash holdings, announced a cash dividend plan and share repurchase commitments, and emphasized long-term investment in content and technology, as well as cooperation with strategic partners, aiming to continuously improve the user experience and innovative products, and build a more dynamic music entertainment ecosystem.

The dialogue focused on the growth drivers of the music ecosystem and membership business, noting that despite competitive pressures and challenges such as AI pirated content, TME is still achieving solid growth through a dual-engine strategy of platform and content. The strong growth of the show business was highlighted and the potential contribution of the Himalayan acquisition to the overall ecology was mentioned. The future will focus on addressing industry challenges and exploring new growth points.

The dialogue highlighted the importance of strengthening copyright protection, deepening cooperation with platforms such as Tencent to broaden user traffic, and deepening users' one-stop music consumption experience with rich IP resources. Through these strategies, the aim is to safeguard the rights and interests of creators, enhance the user experience, and expand the long-term value of the music industry.

Strategies to significantly improve the efficiency of IP realization by building an artist IP matrix and commercial licensing integration are discussed, including the opening of the entire industry chain from music creation to brand cooperation, and the enhancement of fan experience through membership services. At the same time, it mentioned the competitive challenges facing the future business, emphasized the importance of content rights protection, user drainage and AI comprehensive creation, and expressed optimism about long-term performance growth. Finally, it emphasizes the determination to promote transactions in compliance with the law and to follow the requirements of the General Administration of Market Finance.

The dialogue revolves around the membership system, subscription business growth, user retention and business value of the music service platform. It mentions the design of different levels of membership system, advertising membership model, and fan clubs for deep users. Discusses the future growth potential of IP-based music subscription services and audio subscription businesses, and emphasizes the strategy of building a one-stop integrated service platform around IP to enhance user retention and explore business opportunities.

The dialogue focused on the quarterly growth and decline of member services, analyzed the impact of seasonality, price sensitivity and market competition, emphasized the importance of platform differentiation and healthy ecological construction, and looked forward to future commercialization opportunities.

The improvement factors of gross margin are discussed, including the growth of membership and advertising revenue, the improvement of IP-related business efficiency and the effect of cost control. At the same time, the reasons for the increase in sales expenses are analyzed, mainly due to the increase in strategic investment caused by the intensification of market competition. Management expects full-year gross margin to maintain industry excellence and reasonable growth in sales expenses, but not as significant as in the first quarter.