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Universal Music Group and Tencent Music Entertainment Group Enter Into Strategic Agreement Significantly Expanding Chinese Music Market
UNIVERSAL MUSIC GROUP AND TENCENT MUSIC ENTERTAINMENT GROUP ENTER INTO STRATEGIC AGREEMENT SIGNIFICANTLY EXPANDING CHINESE MUSIC MARKET – Provides Vast Multi-Platform Distribution and Marketing Opportunities Across China – Companies to Develop Abbey Road Studios China to Create World-Class Recording Studio and Accelerate Development of Local Talent SHENZHEN and SANTA MONICA, MAY 16, 2017 – Universal Music Group (UMG), the world leader in music-based entertainment, and Tencent Music Entertainment Group (TME), a leading digital music distribution platform in China, today announced the signing of a landmark licensing agreement that will significantly expand the Chinese music market. Under the terms of the multi-year agreement, TME will distribute music from UMG’s roster of record labels and global recording stars on its streaming platforms QQ Music, KuGou and Kuwo. TME will also be UMG’s master distribution and licensing partner to exclusively sub-license UMG’s content to third- party music service providers in China. Both parties will work together to find new ways to develop artists, to innovate business models and to reinforce a robust copyright protection environment. In addition, TME will support UMG artists to promote their music, leveraging Tencent online properties and other media channels. In China, TME is one of the largest music platforms, providing over 17 million songs to 600 million monthly active users. TME is a strong advocate of authorized music and has earned industry recognition for driving growth in the digital music industry, with more than 15 million paying subscribers. UMG represents one of the most comprehensive catalogues of recordings and songs across every music genre. -
China's Rise in Artificial Intelligence
EQUITY RESEARCH | August 31, 2017 Piyush Mubayi +852-2978-1677 [email protected] Goldman Sachs (Asia) L.L.C. Elsie Cheng +852-2978-0820 [email protected] China's Rise in Goldman Sachs (Asia) L.L.C. Heath P. Terry, CFA +1-212-357-1849 [email protected] Artificial Intelligence Goldman Sachs & Co. LLC The New New China Andrew Tilton For the exclusive use of [email protected] +852-2978-1802 China has emerged as a major global contender in the field of AI, the apex [email protected] technology of the information era. In this report, we set out China’s Goldman Sachs (Asia) L.L.C. ambitious top-down plans, the factors (talent, data and infrastructure) Tina Hou that make China unique and the companies (Baidu, Alibaba and Tencent) +86(21)2401-8694 that are making it happen. We believe the development of an ‘intelligent [email protected] economy’ and ‘intelligent society’ by 2030 in China has the potential to Beijing Gao Hua Securities drive productivity improvement and GDP growth in the next two decades. Company Limited Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. -
[TME] - Tencent Music Entertainment Group Second Quarter 2019 Financial Results Conference Call Monday, August 12, 2019, 8:00 PM ET
[TME] - Tencent Music Entertainment Group Second Quarter 2019 Financial Results Conference Call Monday, August 12, 2019, 8:00 PM ET Officers Millicent Tu, VGM, IR Cussion Pang, CEO Tony Yip, CSO Shirley Hu, CFO Analysts John Egbert, Stifel, Nicolaus Alex Yao, JPMorgan Chase Eddie Leung, Bank of America Merrill Lynch Piyush Mubayi, Goldman Sachs Group Thomas Chong, Jefferies Hans Chung, KeyBanc Capital Markets Gary Yu, Morgan Stanley Presentation [Technical Difficulty] Operator: Ladies and gentlemen, good evening and good morning, and thank you for standing by. Welcome to the Tencent Music Entertainment Group's Second Quarter 2019 Earnings Conference Call. At this time, all participants are in listen-only mode. (Operator Instructions). Today you will hear discussions from the management team of Tencent Music Entertainment Group, followed by a question-and-answer session. (Operator Instructions). Please be advised that this conference is being recorded today. If you have any objections, you may disconnect at this time. Now, I will turn the conference over to your speaker host today, Ms. Millicent Tu. Please go ahead. Millicent Tu: Thank you, operator. Hello, everyone, and thank you all for joining us on today's call. Tencent Music Entertainment Group announced its financial results for the second quarter of 2019 today after the market close. An earnings release is now available on our IR website at ir.tencentmusic.com, as well as via newswire services. Today you will hear from Mr. Cussion Pang, our CEO, who will start off the call with an overview of our recent achievements and growth strategy. He will be followed by Mr. -
Driving Positive Change
Driving Positive Change 2019 Corporate Social Responsibility Report Tencent Holdings Limited Corporate Social Responsibility Report 2019 01 Adhering to this new vision, CSR is to play As a listed company in Hong Kong, Introduction a more pivotal part than ever in Tencent’s Tencent complies with the statutory business strategy. The company believes requirements on ESG reporting. This Tencent Holdings Limited (“Tencent”) is that integrating social and environmental report supplements Tencent’s 2019 pleased to publish a condensed version concerns into its daily operations will ESG report and was developed with of its 2019 corporate social responsibility contribute to the well-being of society. reference to the Guidelines on Corporate (CSR) report, entitled Driving Positive As a responsible Internet-based platform Social Responsibility Reporting for Change. The report, supplementing company, Tencent is committed to Chinese Enterprises (CASS-CSR4.0), the this year’s environmental, social and practicing CSR and setting an example Sustainable Reporting Guidelines of the governance report Tencent publishes for the wider community. The Company Global Reporting Initiative (GRI) and the as a Hong Kong-listed company, is part began publishing CSR reports in 2008 Environmental, Social and Government of an ongoing initiative to engage the and in 2017 made it an annual publication Reporting Guide of the Hong Kong Company’s stakeholders through its CSR to communicate its CSR initiatives to its Exchange and Clearing Limited at the efforts. stakeholders on a regular basis. time of writing. In 2019, Tencent reflected on its corporate This year’s report outlines Tencent’s CSR Looking to the future, Tencent is culture and put forward a new vision – strategy, approach and achievements in committed to living out its new vision “Value for Users, Tech for Good”. -
Announcement of the Annual Results for the Year Ended 31 December 2020
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ANNOUNCEMENT OF THE ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020 The Board is pleased to announce the audited consolidated results of the Group for the year ended 31 December 2020. The results have been audited by the Auditor in accordance with International Standards on Auditing. In addition, the results have also been reviewed by the Audit Committee. FINANCIAL PERFORMANCE HIGHLIGHTS Unaudited Three months ended Year- Quarter- 31 December 31 December on-year 30 September on-quarter 2020 2019 change 2020 change (RMB in millions, unless specified) Revenues 133,669 105,767 26% 125,447 7% Gross profit 58,881 46,108 28% 56,647 4% Operating profit 63,713 28,604 123% 43,953 45% Profit for the period 59,369 22,372 165% 38,899 53% Profit attributable to equity holders of the Company 59,302 21,582 175% 38,542 54% Non-IFRS profit attributable to equity holders of the Company 33,207 25,484 30% 32,303 3% EPS (RMB per share) – basic 6.240 2.278 174% 4.059 54% – diluted 6.112 2.248 172% 3.964 54% Non-IFRS EPS (RMB per share) – basic 3.494 2.690 30% 3.402 3% – diluted 3.413 2.643 29% 3.314 3% 1 Year ended 31 December Year- on-year 2020 2019 change (RMB in millions, unless specified) -
Announcement of the Annual Results for the Year Ended 31 December 2017
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ANNOUNCEMENT OF THE ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017 The Board is pleased to announce the audited consolidated results of the Group for the year ended 31 December 2017. The results have been audited by the Auditor in accordance with International Standards on Auditing. In addition, the results have also been reviewed by the Audit Committee. FINANCIAL PERFORMANCE HIGHLIGHTS Unaudited Three months ended 31 31 Year- 30 Quarter- December December on-year September on-quarter 2017 2016 change 2017 change (RMB in millions, unless specified) Revenues 66,392 43,864 51% 65,210 2% Gross profit 31,495 23,626 33% 31,681 -1% Operating profit 25,724 13,930 85% 22,746 13% Profit for the period 21,622 10,523 105% 18,047 20% Profit attributable to equity holders of the Company 20,797 10,529 98% 18,006 16% Non-GAAP profit attributable to equity holders of the Company 17,454 12,332 42% 17,070 2% EPS (RMB per share) - basic 2.206 1.121 97% 1.912 15% - diluted 2.177 1.108 96% 1.888 15% Non-GAAP EPS (RMB per share) - basic 1.852 1.313 41% 1.812 2% - diluted 1.827 1.298 41% 1.790 2% — 1 — Year ended 31 December Year-on-year 2017 2016 change (RMB in millions, unless specified) Revenues -
China's Technology Mega-City an Introduction to Shenzhen
AN INTRODUCTION TO SHENZHEN: CHINA’S TECHNOLOGY MEGA-CITY Eric Kraeutler Shaobin Zhu Yalei Sun May 18, 2020 © 2020 Morgan, Lewis & Bockius LLP SECTION 01 SHENZHEN: THE FIRST FOUR DECADES Shenzhen Then and Now Shenzhen 1979 Shenzhen 2020 https://www.chinadiscovery.com/shenzhen-tours/shenzhen-visa-on- arrival.html 3 Deng Xiaoping: The Grand Engineer of Reform “There was an old man/Who drew a circle/by the South China Sea.” - “The Story of Spring,” Patriotic Chinese song 4 Where is Shenzhen? • On the Southern tip of Central China • In the south of Guangdong Province • North of Hong Kong • Along the East Bank of the Pearl River 5 Shenzhen: Growth and Development • 1979: Shenzhen officially became a City; following the administrative boundaries of Bao’an County. • 1980: Shenzhen established as China’s first Special Economic Zone (SEZ). – Separated into two territories, Shenzhen SEZ to the south, Shenzhen Bao-an County to the North. – Initially, SEZs were separated from China by secondary military patrolled borders. • 2010: Chinese State Council dissolved the “second line”; expanded Shenzhen SEZ to include all districts. • 2010: Shenzhen Stock Exchange founded. • 2019: The Central Government announced plans for additional reforms and an expanded SEZ. 6 Shenzhen’s Special Economic Zone (2010) 2010: Shenzhen SEZ expanded to include all districts. 7 Regulations of the Special Economic Zone • Created an experimental ground for the practice of market capitalism within a community guided by the ideals of “socialism with Chinese characteristics.” • -
MCM China Phase 1
China Luxury Digital Playbook No ordinary love – the changing relationship between brands and Chinese millennials Tencent x BCG luxury consumer insight study Tencent data Consumer survey Data source Tencent DMP Tencent platform users’ survey responses 1.8mn Chinese luxury consumers 2620 consumers Sample size (customized BCG x Tencent tags) (luxury buyers in past 12 months) Key outputs Luxury consumer profiling Luxury touchpoints and purchase pathway 1 Copyright © by 2017 The Boston Consulting Group, Inc. All rights reserved. Chinese luxury consumers to drive global luxury growth Chinese personal luxury market to grow at 6% CAGR 40% of global true luxury market will be in China € billion, retail value € billion, retail value 162 409 +6% 31% 327 +4% 105 247 98 95 28% 27% 28% 222 69% 40% 72% 73% 73% 32% 162 105 2015 2016 2017 2024F 2017 2024F True luxury Accessible luxury 70% of global growth 1. Monthly household disposable income >23k RMB in 2016 prices Note: Chinese includes purchases abroad; personal includes leather accessories, apparel, watches and jewelry and perfumes and cosmetics 2 Copyright © by 2017 The Boston Consulting Group, Inc. All rights reserved. Source: BCG Luxury Market Model 36% 32% 28 Average 13% Age 8% 6% 6% <18 18-24 25-30 31-35 36-40 41+ TGI1 47 148 140 111 88 24 They are very 63% 16% young, better Education 12% 8% educated, Primary school High school College degree Graduate or Ph.D more female TGI1 100 145 321 505 71% 29% Gender Male Female TGI1 54 176 1. TGI measures whether the group is over or under represented compared to the general population (base = 100) 3 Copyright © by 2017 The Boston Consulting Group, Inc. -
The Changing Face of China's Music Market Musicdish*China, May 2017 China’S Old Music Industry Changing Landscape
THE CHANGING FACE OF CHINA'S MUSIC MARKET MUSICDISH*CHINA, MAY 2017 CHINA’S OLD MUSIC INDUSTRY CHANGING LANDSCAPE • 2013 estimated value of recorded music industry of US$82.6 million (5.6% increase), 21st largest (IFPI) • 2015 estimated value of recorded music industry of US$169.7 million (63.8% increase), 14th largest (IFPI) • 2016 value of recorded music industry grew 20.3% on 30.6% increase in streaming revenue, 12th largest (IFPI) • Digital music industry compound annual growth rate (2011-15): +28.5% (Nielsen) • Government policy: copyright law and enforcement • Market consolidation & music licensing • Shift to smartphone, lower mobile data cost, increased connectivity 40 Tencent: QQ + Kugou + Kuwo ~ 78% 30 Netease 9% 20 Xiami (Alibaba) 10 4% Other: Baidu, Apple Music,… 9% 0 QQ Kugou Kuwo Netease Xiami Other STEFANIE SUN & APPLE MUSIC • EP “RAINBOW BOT” EXCLUSIVELY ON APPLE MUSIC • EXCLUSIVE 3 MINUTE DOCUMENTARY • RANKED NUMBER 4 FOR “5 CAN’T-MISS APPLE MUSIC EXCLUSIVE ALBUM” STREAMING WARS: TENCENT VS. NETEASE • 10th most valued company, world’s largest video game company by revenue, WeChat has 889M active users • Tencent has 600M active monthly users and over 15M paying music subscribers • QQ Music has 200M active monthly users • Combined with Kuwo and Kugou (CMC acquisition), control 77% of music streaming market • NetEase Music Cloud recently joined ranks of unicorns • Netease has over 300M active monthly users MOBILE MUSIC LANDSCAPE • 2015 mobile music industry US$945 million • Estimated 2016 mobile music industry US$1.4 billion -
Chapter Iii Internal & External Analysis
CHAPTER III INTERNAL & EXTERNAL ANALYSIS 3.1 Vision & Mission Vision To be the most respected Internet Company. Earn the respect of consumers by listening, satisfying and exceeding their needs and expectations. Earn the respect of employees by continuously improving our corporate reputation so that Tencent is a company employees are proud to work for. Earn the respect within the industry by promotion the healthy development of the Inernet industry and win-win collaboration with partners. Earn the respect of society by actively assuming corporate responsibility and contributing to community development. Mission To enhance people’s quality of life through Internet services. Treat the Internet like electricity: a reliable service that makes life easier and more enjoyable. Address the diverse need of different regions and consumers by offering differentiated products and services Build a healthy and win-win Internet ecology based on open collaboration with partners. 12 3.2 PEST Analysis PEST, as an analysis framework of macro-environmental factors, which can be considered as macro-environmental factors and its usefulness line in the assumption that the success of a particular organization or management solution cannot be understood without having the information relevant to the specific business environment (Buchanan and Gibb, 1998). 3.2.1 Political factors As a majority of Tencent’s operations are located in China, therefore its results of operations, financial condition and prospects are subject to regulatory developments in China. The China’s Internet and telecommunications industries are highly regulated. Regulations issued or implemented by the State Council, MIIT, MOC, GAPP and other relevant government authorities cover many aspects of its telecommunications and Internet information services, including entry into the telecommunications industry, the scope of permissible business activities, licenses and permits for various business activities and foreign investment. -
Global Recorded Music Industry Revenues 2001-2020
GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 3 CONTENTS STATE OF THE INDUSTRY Global Music Market 2020 in Numbers 04 Introduction 05 Global Charts 06 Global Market Overview 2020 10 Our mission to put creators Our continuing commitment The universe of opportunities 2020 Figures by Format 12 first has been more important is to harness our collective for artists and labels is than ever in the past year. talents and resources to diverse, vast, and fast Hits can now come from shape culture through the expanding. There’s strong 2020 Figures by Region 14 anywhere and artists are power of music and the growth in both subscription empowered by future-focused artistry and creativity at its and ad-supported streaming, Record Companies, Driving Global Opportunities for Music 16 insights, tools and resources core. When, in collaboration with plenty of runway to reach global audiences. with our artists, we come around the globe. At the Breaking down barriers and together as a company and same time, the pandemic Partnering with Artists, Delivering for Fans 24 borders of language, culture as a community, what we can has accelerated consumer Case Study: Chen Li Nong 28 and genre around the world, achieve is truly remarkable. adoption in areas like gaming, Case Study: Travis Scott music has made an incredible That mission is especially live streaming, social media 30 impact over the last year, important now, as the world and in-home fitness. Music Case Study: Dua Lipa 32 bringing communities has never needed music more. is a fundamental driving SIR LUCIAN GRAINGE together to tackle the Chairman & Chief Executive force in the success of these Officer, Universal Music Group Beyond the Music 34 challenges facing all of us. -
Methodology and Sources
154 IFPI GLOBAL MUSIC REPORT 2020 IFPI GLOBAL MUSIC REPORT 2020 155 METHODOLOGY AND SOURCES VIETNAM METHODOLOGY • Trade value: also known as wholesale value, trade value refers to record companies’ revenue • Revisions and updates: some figures presented in this publication may differ from previous GLOBAL RANK 52 from the sale/licensing of recorded music products and content to Digital Service Providers, years due to revisions and updates or due to better information becoming available. domestic retailers/intermediaries, net of discounts, returns, taxes and sales allowances. • Subscriber numbers: IFPI agreed a methodology for the calculation of streaming subscription Premium sales (physical and digital) are included. Promotional goods, non-music/non-sound numbers with international representatives from each of our major members (SME, UMG recording artist related income, deletions, cut-outs, distribution fees and income from legal and WMG), which is consistent with previous years. We also contacted DSPs to validate the settlements from anti-piracy cases are excluded. All analysis, growth and trends, are based RECORDED MUSIC REVENUES BY SECTOR 2020 (TRADE VALUE) accuracy of the IFPI figures. on trade value unless otherwise stated. Figures are provided by the record companies to IFPI for the respective markets. The local IFPI National Group in the respective markets applies a IFPI GLOBAL CHARTS ‘coverage factor’ to the figures to account for non-reporting companies, therefore representing STREAMING OTHER DIGITAL PHYSICAL PERFORMANCE RIGHTS SYNCHRONISATION 100% of the market. IFPI compiles four Global Charts, which rank the top artists, singles and albums of the year globally. All charts are based on submissions from participating labels across the world, which 98.6% 1.3% - - 0.1% • US $ values: local currency values are stated at independently sourced 2020 exchange rates.