Ladies and gentlemen, thank you for standing by, and welcome to Tencent Holdings Limited 2020 fourth quarter and annual results announcement conference call. Thank you. Please go ahead. Thank you, operator. Good evening. Welcome to our 2020 fourth quarter and annual results conference call. I'm Wendy Huang from Tencent IR team. Before we start the presentation, we would like to remind you that it includes forward-looking statements, which are underlined by a number of risks and uncertainties, and it may not be realized in the future for various reasons. Information about general market conditions is coming from a variety of sources outside of Tencent. This presentation also contains some unaudited non-IFRS financial measures that should be considered in addition to, but not as a substitute for, measures of the company's financial performance prepared in accordance with IFRS. For a detailed discussion of risk factors and non-IFRS measures, please refer to our disclosure documents on the IR section of our website. Let me now introduce the management team on the call tonight. Our Chairman and CEO, Pony Ma, will kick off with a short overview, including ESG initiatives. President Martin Lau will discuss strategy review. Chief Strategy Officer James Mitchell will speak to business review. The Chief Financial Officer, John Lo, will conclude with financial discussion before we open the floor for questions. I will now turn the call over to Pony. Okay. Thank you. Good evening, everyone. Thank you for joining us. 2020 was unprecedented year with many challenges. Having said that, we delivered a solid result. We believe our robust operating and financial result testify to our focus on user value and technology innovation. Let me walk you through some of our key achievements. In social, we strengthening Weixin's value proposition for users and enterprises. Our new feature, Video Accounts, enabled public sharing of informative and educational content in video format. Mini Programs continue to deepen penetration in more use cases with annual transaction volume more than doubling year-on-year. For QQ, we increased stickiness among young users by enriching shared experience and catering to their entertainment and e-learning needs. In games, our worldwide revenue grew 36% year-on-year, with increasing contribution from international markets. We reinforced our leadership across mobile and PC by expanding user bases for major games and launching successful new games. In content, we extend IP value across literature, anime, games, and long-form video to create unique and appealing content. We became clear number one in China video subscription market. In advertising, we integrated advertising platforms, strengthening Tencent's own properties, as well as mobile ad network of privileged choices for advertisers. In FinTech services, payment user engagement and commercial payment volume increased healthily. We will continue to work closely with the regulator and industry partner to deliver compliant FinTech products while prioritizing risk management over scale. In business services, Tencent Meeting has become the largest standalone app for cloud conferencing in China. Innovation such as our customized StarLake server solution and self-developed T-block data center technology enhance our cloud services performance and cost efficiency. Let me go through the headline number for the fourth quarter. Total revenue was CNY 134 billion, up 26% year-on-year and 7% quarter-on-quarter. Gross profit was CNY 59 billion, up 28% year-on-year and 4% quarter-on-quarter. Non-IFRS operating profit was CNY 38 billion, up 26% year-on-year and stable quarter-on-quarter. Non-IFRS net profit attributable to equity holders was CNY 33 billion, up 30% year-on-year and 3% quarter-on-quarter. Moving to key services. In social, combined MAU of Weixin and WeChat further rose to 1.23 billion. Smart devices MAU of QQ was 595 million. Martin and James will speak to each of our other key services later. In 2020, we continued to implement various initiatives around our mission of tech for good. As the world navigates through COVID-19, technology plays a more significant role in restoring normal life and business activity. We provide users with convenient access to healthcare education and public services via our products and technology. We help enterprise clients to maintain business continuity with various tools and products. Mini Programs and Weixin Pay facilitate consumer spending during the lockdown and accelerate digitalization of offline retailer and brand after that. For charities, we have built an efficient online fundraising platform and utilize technology to assist their digital upgrade. In 2020, our flagship event, 99 Giving Day, engaged over 18 million users and 10,000 charities, raising CNY 3 billion in three days. For inclusion, we are bridging the digital divide for the elderly and the disadvantaged. Weixin Relatives Card enables senior users to enjoy the benefits of digital payment without hassles. An image-to-speech in QQ helps visually impaired users interact with friends. We are also facilitating rural digitalization with the WeCounty initiative. For other ESG commitment, we are moving toward carbon neutrality, by leveraging AI, big data, and cloud computing. We adhere to privacy by design and deploy advanced security technology to safeguard users' data. To advocate the digital wellbeing for teenage users in China, we continuously upgrade our healthy gameplay system. Looking forward, we will continue to integrate the social responsibility into our operations, products, and services, creating long-term value for all stakeholders. I will now invite Martin to discuss strategy review. Thank you, Pony. Good evening and good morning to everybody. In this section, I will discuss our strategic investment in innovation, which we believe is the main driver of our business performance in the past and for the future. With a focus on user experience, we pursue continuous innovation to enhance our platforms. We invest in incremental innovation to enrich existing product experiences, and we also invest in transformative innovation to create new products to serve new user needs. Many of these innovations have taken years of patient investment to yield results. In communication and social, for example, we started with mobile chat and added social networking, official accounts, payments, Mini Programs over the years. At the present time, we are incubating Video Accounts as a new innovation. In the area of games, we create new and exciting titles internally and through partnerships, as well as continuously upgrade our game tech. In SaaS, we identified this emerging opportunity in China when we announced our strategic upgrade to the industrial internet in 2018. Over the past year, we achieved breakout growth in productivity and communication software. In health tech, we are utilizing our AI, Mini Programs, and communication tools to solve industry pain points. In ecosystem, we support innovative companies via capital investment and business partnerships to better serve users and enterprises. For the rest of this section, I'll discuss how innovation has driven each one of these areas and how it will continue to drive our sustainable long-term growth. Let's first start with Weixin Video Accounts, which represents our recent innovation in the communications and social space. Videoization of content for easy consumption is a key global trend. We saw a significant increase in uploads and sharing of short videos within Weixin Moments and chats. Video Accounts was created as a separate ID-based, short-form content creation platform within Weixin. Video Accounts enable video uploads and sharing, as well as live streaming to the public audience. Through aggregating content providers' digital assets within Weixin, such as official accounts and Mini Programs, Video Accounts help reinforce their branding and facilitate user engagement and transactions. The unique strength of Video Accounts lie in linking public domain to private domain, which provides an unparalleled channel for businesses to acquire and manage their own customers. Video Accounts is attracting increasingly number of high-quality content providers who generate both informative as well as educational and entertainment content. We recommend content to users based on social interest graph and algorithm, which can diversify the mix of users' content consumption. Turning to games. During the year 2020, we launched several new and exciting titles and made breakthrough in new technology applications such as gaming AI and cloud gaming. For new games, we released VALORANT on PC for the international markets, as well as Moonlight Blade Mobile and Call of Duty: Mobile in China. Each game offers unique experience by innovating in character abilities, environmental design, gameplays, and controls, and thereby achieving best-in-class performance. VALORANT, a team-based tactical shooter which Riot Games spent over six years to develop, was the most successful new PC game internationally. In China, Moonlight Blade Mobile was the best performing new MMORPG for the year and was supported by our proprietary game engine, honed through 10 years of dedicated development. Call of Duty Mobile, the highest DAU game launched in 2020 in China, is a high-quality complement to the franchise console and PC versions. For existing titles, we continuously innovate in game tech to refresh user experience. For example, Honor of Kings is an early adopter of next-generation rendering and high dynamic range imaging technologies in China, which enhances the visual effects and make animation more realistic, detailed and natural. Honor of Kings was the top grossing mobile game in China for the fourth consecutive year and worldwide for the second consecutive year. We also tested game AI, Wukong, in Honor of Kings, which attracted over 50 million player participants within four days of trial. Wukong is the first AI agent able to play through mobile game with deep reinforcement learning, it will be applied to more game genres to enhance the PvE experience. In cloud gaming, we're the first mover to launch platforms and games providing high-quality in-game experience across different devices, among which START platform is cooperating with leading TV manufacturers to offer MMO games on smart TV. XianYou platform offers more than 100 mobile games, including Honor of Kings and Peacekeeper Elite, to play even on low-end phones. Moving on to communication and productivity SaaS. We achieved breakout growth in 2020, especially for WeCom, Tencent Meeting, and Tencent Docs. We strengthened interoperability between WeCom and Weixin, allowed increasing number of retailers, service providers, and teachers to connect to over 400 million users. This also boosted WeCom's customer base to 5.5 million enterprises. We uphold open strategy and introduced multiple cooperation models to rapidly grow partnerships with OA application vendors in order to better sign up enterprises clients together. By leveraging synergies with Tencent Cloud sales force, WeCom successfully increased penetration in K-12 education market. In view of growing needs for virtual meetings, we launched Tencent Meeting in 2020, which accumulated over 100 million users and has become the most used standalone app for cloud conferencing in China. During the year, we launched enterprise version for key accounts and enhanced in-meeting capabilities, delivering superior experience for enterprise customers. We developed new solutions, Rooms and Connector, in order to expand Tencent Meetings compatibility with the client's existing devices, saving costs for them, and facilitating adoption for us. Our signature productivity solution, Tencent Docs, is the first mover in China to provide online solutions that efficiently generate tables based on collaborated data entry. During the year, we continued to add new features, such as AI-supported optical character and speech recognition input to enhance user experience and productivity. Through extensive integration with other software such as QQ, QQ Browser, and other SaaS products, Tencent Docs expanded use cases and recorded over 100 million monthly active users in 2020, more than quadrupled year-on-year. Next on health tech. Our product matrix includes Tencent Health, Tencent Medipedia, and Health Code, providing innovative solutions to digitize offline healthcare services and benefit the entire industry. Tencent Health, an all-in-one entry point for online healthcare services, has added more COVID-19 related services, such as appointment for testing and vaccination. Total active users exceeded 400 million. We also included medical insurance e-certificate and electronic health card within Tencent Health. Users can bundle medical insurance e-certificate with their social basic medical insurance accounts to conduct mobile payment in more than 10,000 hospitals, 200,000 pharmacies across 200+ cities. Our electronic health card serves as a health information management tool for users and their families, and now it's available online in more than 2,000 hospitals. Tencent Medipedia, a reliable medical information source, expanded the number of medical terms to over 120,000, leading in China. We utilized AI technology to enhance medical experts' efficiency in reviewing content. We enriched content formats from text picture to short video and live streaming. Tencent Medipedia content is distributed via self-owned and third-party platforms, attracting over 7 billion page views and video views in the year of 2020. Health Code is an easy entry point for users to get their e-pass automatically based on health information they filled in. During the pandemic, Health Code facilitated people's efficient movement in and out of public areas nationwide. Within a year, Health Code served 1 billion users with over 65 billion total visits, becoming the most used e-pass for verifying health and travel status in China. Finally, complementary to our investment in innovation to drive our core businesses, investment in ecosystem is also our strategic focus. Through investments, we support innovation for our partners and investees, which ultimately together better serve users and enterprises. In consumer internet, we identify investments which capture emerging opportunities arising from technological advancements and user behavior changes. User value and product experiences are top priorities for us. Our key investment areas include content games, FinTech services, e-commerce, O2O, and education. In industrial internet, we seek to build close relationships with value chain players to support the evolution of various industries. Leveraging our technology strength, we assist digital upgrade in sectors such as education, healthcare, transportation, and retail. In that process, our communication and social services can also connect users with more services in convenient and efficient manner. Our investment principles are to invest in high-quality management teams, invest in best-in- class companies which have deep industry know-how and core competence in their respective fields. We aim to support the investees' innovation while enabling them to grow and operate independently. Through our investments, we do not only nurture the growth of startups, but also create synergies that are value added to users. An additional benefit of our investment strategy is that we can then focus our internal resources, be it developers, people, and bandwidth, on driving innovation within our core businesses. This two-pronged strategy has been pivotal in driving sustainable development for the company and the industry as a whole. Now with that, I'll pass to James to talk about our business review. Thank you, Martin. For the fourth quarter of 2020, our total revenue grew 26% year-on-year. VAS represented 50% of our revenue, within which online games were 29% and social networks 21%. Online advertising was 18%, and FinTech and business services represented 29% of our revenue. For value-added services, segment revenue was CNY 67 billion for the fourth quarter, up 28% year-on-year and down 4% quarter-on-quarter. Social network revenue was CNY 28 billion, representing 27% year-on-year growth, primarily driven by live streaming services and in-game item sales. Sequentially, revenue growth from digital content services was offset by a revenue decline from in-game item sales. Total VAS subscription accounts grew 22% year-on-year to 219 million subscriptions. Our video subscriptions increased 17% year-on-year to 123 million subscriptions. We strengthened our market leadership through self-commissioned animated series, deeper cooperation with channel partners, and an expanded OTT user base. Our music subscriptions grew 40% year-on-year to 56 million subscriptions, benefiting from improved user retention in our paywall strategy. Our online games revenue increased 29% year-on-year to CNY 39 billion, driven by more smartphone game players and a higher paying user ratio. Revenue decreased 6% quarter-on-quarter due to normalized user activity and seasonality. For smartphone games, total revenue grew 41% year-on-year to CNY 37 billion, reflecting robust growth from in-house titles including Peacekeeper Elite, Honor of Kings, and PUBG MOBILE, as well as our new massively multiplayer role-playing game, Moonlight Blade Mobile. For PC client games, revenue decreased 1% year-on-year to CNY 10 billion as softness of Dungeon & Fighter offset growth from League of Legends and from VALORANT. Focusing on Weixin, Martin has already discussed our Video Accounts strategy and product, I will touch briefly on live streaming and Video Accounts, which facilitates real-time one-to-many interactions. Content creators and brands can use live streaming to engage with users via red carpets, co-hosting, and audience dialing. Additionally, Weixin launched the Status feature, allowing users to share their current emotions and thoughts with pictures or videos and connect with like-minded friends. Animated emojis enabled users to express themselves more vividly online. Moving to QQ, we focused on enhancing interactive experiences within vertical communities. For content-oriented communities, we introduced the hashtag feature and trending topics within Mini World, which resonated with Generation Z users and increased Mini World's daily user engagement. For game communities, we launched joint promotions and celebrity esports competitions for games such as Honor of Kings and Call of Duty: Mobile. Users can discuss game-related topics within interest groups and Mini Programs while obtaining in-game incentives. For learning communities, we partnered with educational institutions to offer quiz challenges and question-and-answer services, fostering a vibrant study environment. Looking at our game activities within China, in battle arena games, Honor of Kings released its biggest ever update in January with the new hero skins and user interface. We upgraded the game's rendering technology to enhance visual effects with minimal performance overhead. For shooting games, Call of Duty: Mobile attracts hardcore players with its fast-paced and competitive FPS experience. For role-playing games, Aurora Studios extended the Moonlight Blade IP from PC to mobile, and the mobile game ranks the top grossing massively multiplayer role-playing game on iOS during the quarter. By the end of 2020, we have distributed over 1 million Switch consoles in China. Pony mentioned a healthy gameplay system which helps parents manage younger users' in-game playtime and spending. During the fourth quarter, players aged under 18 years old accounted for 6% of game gross receipts, and players aged under 16 for 3.2%. Internationally, our game revenue rose 43% year-on-year to CNY 9.8 billion. The League of Legends World Championship Finals attracted over 45 million peak concurrent users, a record high viewership for esports. League of Legends mobile version, Wild Rift, has further expanded the League of Legends franchise user base. PUBG MOBILE ranked as the most popular smartphone game by monthly active users for a second consecutive year, and its flagship tournament was the most viewed esports competition among all mobile games. We're increasingly seeking to create games with global appeal. By collaborating with renowned console game and anime IPs, we can bring our new mobile games to wider global attention. We're investing in PC and console studios that are leaders in emerging markets that can, in future, nurture fan bases worldwide. Moving to online advertising. Our advertising revenue was CNY 25 billion in the fourth quarter, up 22% year-on-year and up 15% quarter-on-quarter. We experienced increased demand from the education sector, e-commerce platforms, and fast-moving consumer goods advertisers. Our auto-related ad revenue benefited from a domestic car sales recovery and from consolidation of Bitauto. Our social and others advertising revenue was CNY 20 billion, up 25% year-on-year and 15% quarter-on-quarter, driven primarily by Moments and our mobile ad network. Moments revenue maintained growth as we enabled performance-oriented advertisers to link their ads with their Mini Programs, so boosting their transactions and sales conversions. By offering customized in-app advertising solutions, our mobile ad network has attracted more ad spend, especially from external game companies and internet services. In-game ad revenue on our mobile ad network more than doubled year-on-year. Our media advertising revenue for the quarter was CNY 4 billion, up 8% year-on-year and 19% quarter-on-quarter, reflecting increased video ad revenue and music app monetization. Looking at FinTech and Business services, revenue was CNY 38 billion in the fourth quarter, up 29% year-on-year and up 16% quarter-on-quarter. Within FinTech services, revenue grew year-on-year and quarter-on-quarter as our payments and wealth management services were increasingly adopted by consumers and merchants. Total payment volume grew healthily year-on-year, driven by more daily active consumers and higher payment frequency in verticals including retail, public services, and groceries. Payment commercial take rates were generally stable. For our wealth management business, aggregated customer assets grew robustly year-on-year. Looking forward, we'll focus on investor education and helping users to identify quality products selected by our independent research team. Within business services, we expanded our customer base in key verticals and increased our platform-as-a-service revenue robustly, contributing to a faster year-on-year revenue growth rate in the fourth quarter compared to the third quarter. We also deployed more on-premises projects during the period. For infrastructure as a service, we developed our StarLake SA2 server architecture, powered by the latest generation AMD EPYC processors. This new architecture provides better AI, security, storage, and network capabilities with lower energy consumption, enhancing Tencent Cloud services' cost efficiency. For software as a service, Tencent Meeting enterprise version penetrated key accounts in the energy, healthcare, and education sectors. Our conference room solutions, Tencent Meeting Rooms and Connector, facilitate high-quality real-time communication and are compatible with customers' existing audio-visual equipment. With that, I'll pass to John. Thank you, James. Hello, everyone. For the fourth quarter of 2020, total revenue was CNY 133.7 billion, an increase of 26% year-on-year or 7% quarter-on-quarter. Gross profit was CNY 58.9 billion, up 28% year-on-year or 4% quarter-on-quarter. Net other gains was CNY 32.9 billion. This mainly comprised of IFRS adjustment items representing increased valuations of certain investees in social media, e-commerce, and online game verticals, as well as net gains on the disposal of certain investees. Operating profit was CNY 63.7 billion, up 123% year-on-year or 45% quarter-on-quarter. Net finance costs were CNY 2.3 billion, down 19% year-on-year or up 16% quarter-on-quarter. Year-on-year decrease reflected lower interest expense as a result of reduced average cost of funds. QoQ increase was mainly driven by foreign exchange losses. Share of profit of associates and joint ventures was CNY 1.6 billion compared to share of losses for fourth quarter 2019. The year-on-year difference mainly reflected non-IFRS adjustment items of certain associates and improved performance of certain e-commerce and online games associates. On a non-IFRS basis, share profit was CNY 2.7 billion for the quarter versus CNY 1.3 billion a year ago. Income tax expense was CNY 3.7 billion, and effective tax rate was 5.9% for the quarter. IFRS net profit attributable to equity holders was CNY 59.3 billion, up 175% year-on-year or 54% quarter-on-quarter. For the full year of 2020, total revenue was CNY 482.1 billion, up 28%. Gross profit was CNY 221.5 billion, up 32%. Operating profit was CNY 184.2 billion, up 55%. IFRS net profit attributable to equity holders was CNY 159.8 billion, up 71%, and the effective tax rate for the year was 11.1%. Now I'll share with you our non-IFRS financial figures. For the fourth quarter, operating profit was CNY 38.1 billion, up 26% year-on-year or flattish quarter-on-quarter. Net profit attributable to equity holders was CNY 33.2 billion, up 30% year-on-year or 3% quarter-on-quarter. For the full year of 2020, operating profit was CNY 149.4 billion, up 30%. Net profit attributable to equity holders was CNY 122.7 billion, up 30%. Moving on to segment gross margins. Gross margin for value-added services was 51.5%, up 1.4 percentage points year-on-year or down 1.1 percentage points quarter-on-quarter. On a year-on-year basis, we continue to benefit from revenue growth of higher margin self-developed platform games. Sequentially, margin decrease was primarily driven by revenue mixture from high margin PC client games to lower margin digital content services. Gross margin for online advertising was 53.3%, down one percentage points year-on-year or 2.4 percentage points quarter-on-quarter. Year-on-year decrease was due to higher revenue contributions from mobile ad network business, which carries lower margin. Sequentially, margin increase reflected lower related content cost due to delays of sports event broadcast. Gross margin for FinTech and Business services was 28.5%, up slightly year-on-year and quarter-on-quarter. For the full year of 2020, VAS gross margin increased 1.1 percentage points to 54.1%. Online advertising gross margin increased 2.4 percentage points to 51.4%. Gross margin for FinTech and business services increased 1.1 percentage points to 28.3%. On operating expenses, selling and marketing expenses were CNY 10 billion, up 49% year-on-year or 12% quarter-on-quarter. As a percentage of revenues, selling and marketing expenses represented 7.5% for the quarter. Both quarter on quarter and year on year increase reflected greater marketing spend on online games, business services, and digital content services, including those associated with a consolidation impact of Bitauto and Huya. G&A expenses was CNY 19.8 billion, up 24% year on year and 15% quarter on quarter, mainly reflected greater R&D and Salesforce. Within G&A, R&D expenses was CNY 11.2 billion, up 26% year on year or 13% quarter on quarter. G&A and R&D represented 14.8% and 8.4% of revenues respectively. As at quarter end, we had approximately 86,000 employees, up 37% year on year or 11% quarter on quarter. For the full year of 2020, selling and marketing expense was CNY 33.8 billion, up 58% and represented 7% of revenues. The increase primarily reflected greater marketing spend for online games and recent consolidations, as well as marketing spend to support long-term strategic initiatives, including short-term video, cloud-based healthcare solutions, online education, and remote work. R&D spend was CNY 39 billion, up 28% and represented 8.1% of revenues. G&A expenses, excluding R&D, was CNY 28.6 billion, up 24% and represented 5.9% of revenues. For the fourth quarter 2020, gross margin was 44%, largely stable year-over-year or down 1.2 percentage points quarter-over-quarter. Sequential decrease reflected lower VAS gross margin compared to the previous quarter. Non-IFRS operating margin was 28.5%, largely stable year-over-year or down 1.9 percentage points quarter-over-quarter. Non-IFRS net margin was 25.8%, largely stable year-over-year and quarter-over-quarter. For the full year 2020, gross margin was 46%, up 1.6 percentage points. Non-IFRS operating margin and net margin were 31% and 26.3% respectively. Both remained broadly stable. Let's move on to earnings per share and annual dividend. For 2020, on IFRS basis, basic EPS was CNY 16.844, and diluted EPS was CNY 16.523. Non-IFRS basic EPS was CNY 12.934, and diluted EPS was CNY 12.689. Subject to the approval of the shareholders at an AGM to be held on 20th of May 2021, we are proposing an annual dividend of HKD 1.6 per share, payable to shareholders on the 7th of June 2021. This represents an increase of 33.3% from last year. Finally, total CapEx was CNY 9.7 billion, down 43% year-on-year or up 11% quarter-on-quarter. Operating CapEx increased by 13% year-on-year to CNY 8 billion as we continue to ramp up investment in servers and network equipment to augment our business growth. Non-operating CapEx decreased 83% year-on-year to CNY 1.6 billion, mainly due to high base in fourth quarter 2019 for office land purchase. Free cash flow was CNY 27.7 billion, down 11% year-on-year or down 2% quarter-on-quarter. Net cash position was at CNY 11.1 billion, which increased sequentially due to free cash flow generation and foreign exchange effects, partially offset by net cash outflow for M&A activities. Fair value of our shareholdings in listed investees, excluding subsidiaries, was approximately CNY 1.2 trillion or $185 billion at the end of the year. Thank you. We'll now open the floor for questions. Operator, we will take one main question, one follow-up question each time. Please invite the first question. Thank you. Operator? Operator? Thank you. Your first question comes from Robin Zhu from Bernstein. Please go ahead. Thank you. Thanks for the opportunity to ask the question. Could I ask two questions? Firstly, could management give some examples of how you plan to accelerate the growth in Video Accounts in terms of, for example, number of creators, depth of video content, and user engagement? If you had any quantitative targets, for example, time spent or users by the end of 2021. Second question, if I look at the deferred revenue balance, it seems to imply that cash game billings showed quite a meaningful deceleration in Q4, despite the launch of Call of Duty. I just wanted to get your thoughts on why that was, if anything one-off happened, and your expectations for growth in the first half of 2021, and if you had any color on the launches like, for example, DNF or League of Legends, what your expectations are. Thank you. Okay. I'll take the first question, Robin. In terms of Video Accounts, I think you have actually hit on the important point, which is you need to have a double flying wheel, right? You need to have more content, and as such, you actually sort of need to attract more content developers as well as help them to be more active on our platform. At the same time, you actually need to have more viewership, right? They actually serve as mutually reinforcing. In terms of how do we actually sort of keep on increasing the amount of content, and on that front, the key thing is we actually already have got a very good set of content creators, and these content creators, part of them are actually new creators, and they are converted from our official accounts. In the past, they have been writing articles, and now they convert themselves into content creators on the video side. There are new creators as well who come in, and at the same time, we have seen existing content creators on other platforms also join us. The main reason that they actually join us is because of the fact that there's the distinction that our platform provides, which is essentially ability for them to build their private domain viewership. In other platforms, when you have the content, you actually sort of subject yourself to algorithmic recommendation. After that, you basically lose your viewership. The next content, you actually sort of have to build up again. In our platform, we actually have a very strong set of tools and connections so that you can actually convert the public domain traffic into private domain. At the same time, for a lot of the existing OA content creators, we actually provide a lot of touch points for them to connect their Video Accounts with other assets, such as official accounts, live streaming, and Mini Programs. Basically, one key objective and initiative that we're doing is keep on increasing these touchpoints and providing the tools so that there's much better connection between the public domain and private domain, so that we create a very unique platform for these content providers. Then on the viewership side, we would continue to improve the algorithmic recommendation, which is very important, and at the same time, as you can see, we are actually providing pretty unique content on our platform, right? These are content not just for entertainment purpose, but also for educational, as well as informational purposes. A lot of the content providers are first-time short video creators, and these are all unique supplies, which would help us to attract users. Finally, when we actually provide content, we not only use the algorithmic recommendation, right? We also have social signals, which actually help the viewer to see a different kind of world. With all these together, we felt we can, on one end, increase on the supply, on the other end, we can increase on the consumption, and they would self-reinforce themselves over time. I can say the Video Accounts, in terms of both users as well as the user time, have been increasing pretty healthily. We're not in a position to talk about specific numbers yet. Robin, thank you for the second question as well around game billing. You're correct to observe that both the game billings and the game revenue declined quarter on quarter in the fourth quarter. There's three points perhaps to make around that. One is that, as you know, for China, the work from home period was very pronounced in the first half of last year and then relaxed as people returned to offices in the second half of last year. That tended to boost the billings in the first half of last year. Because we convert our billings into reported revenue with a time lag, that flowed through into lower reported revenue in the fourth quarter of last year. That's just a sort of natural unwind of the work from home period benefit, at least in China. We haven't seen that yet internationally. The second point is that for us, the fourth quarter is historically a low season for game billings. You didn't see that every year in our history, usually due to one-time events. For example, if you look at the fourth quarter of 2019, you didn't see the normal seasonal decline in billings, in part because we consolidated Supercell, which added many billions of RMB to our deferred revenue, moving from 3Q 2019 to 4Q 2019. This period, we didn't have any sort of unusual benefits, and so the usual seasonality became more apparent. Third, and finally, the seasonality was more pronounced than a normal year this year because of delayed Chinese New Year. For some of our biggest games in China, we began running our Chinese New Year activities around 30 days before the Chinese New Year holiday itself. For the 2019 to 2020 period, that meant the activities commenced in late December, and so we had the deferred revenue on our balance sheet for those as of December 31st, versus for 2020 going into 2021, the activities commenced in January, so they only came onto our balance sheet in the first quarter. You also asked about the outlook for the first half. I think that if you look back at the first half of 2020, then the work from home conditions resulted in higher game revenues than would otherwise have been the case, and lower revenue for some of our other activities, in particular, payments and FinTech. All else equal, if this year we're back in a work from office mode, which we seem to be, then I think it would be natural to expect those two trends to temporarily reverse. That's very much a short-term phenomenon for people who are focused on the next quarter. If you're focused on the next several years, I think the more important takeaway is that the work from home period really expanded the audience for games and expanded the social acceptability of spending money within games, which positions the game industry, alongside several other industries we're active in, such as online education and healthcare, for sustained multi-year growth once we've worked through the slightly tougher comparisons in the first half of this year. I hope that answers both parts of your question. Thank you. Your next question comes from Alicia Yap from Citigroup. Please ask your question. Hi. Thank you. Good evening, management. Thanks for taking my questions. Congrats on the solid second results. I have two questions. First question is, as we see increasing overlap of internet service among all these internet companies in China, in addition to user, which is the core asset for most of these companies, the proprietary content and also the content IP actually seems to be the key differentiated asset. Actually, Tencent do have both of these users and also content. Could management share your thoughts on how Tencent could further capitalize on these various digital entertainment content portfolio that you have to enhance the user experience and also further expand the monetization potential? The second question is roughly very quickly on the Tencent Cloud. Just curious to see what are some of the key challenges that the Tencent Cloud is facing when trying to penetrate to the different enterprises. Is that related to the lack of the IT talent at this enterprise, or is it the IT budget constraint, or is it related to the vertical solutions that are available, and how Tencent actually help to support this enterprise to further adopt the cloud service? Thank you. Alicia, perhaps I'll answer the first question. I think that over time, there's a general trend for value to migrate from traffic towards content. And that's something that we're very aware of, and really for the past decade, we've been investing aggressively in swimming upstream to get closer to the content. And you can see that in our game business, where we've moved from being a distributor to a publisher, and most recently to primarily a studio-centric game business. You can see that in music where we increasingly have upstream label coverage in China as well as stakes in global leaders such as Universal Music and Warner Music. You can see that very clearly in literature. That's a trend that we really embrace, and we think that will validate the strategy we've been embarked on for the past decade. One interesting thought experiment is if you look at the world of traditional video linear entertainment, then while there are many excellent companies competing in this space, one company, Disney, has pretty consistently enjoyed outsized success, both with its organically developed IP such as Frozen, also with acquired IP such as Cars or Star Wars. There are many reasons, but I think one key reason is that Disney has an unparalleled ability to not only provide the linear video entertainment, but also to provide an interactive experience in the form of a theme park that really deepens the engagement between the users and the IP, because they're actually interacting as opposed to just passively consuming. Of course, the bottleneck to that business model is that theme parks are expensive and rare, and only a limited number of consumers can enjoy them at any point in time. Versus we're in a world where we're providing interactive entertainment experiences through our games, which are universally available, very cheaply and inexpensively available to users. What we see is increasingly that the games serve the same role as a theme park would in terms of deepening the engagement between the user and the IP, and heightening the user's appetite to consume the IP in other linear formats. If you look, for example, at our intellectual property, Soul Land/Douluo Dalu, then that's China Literature, a novel. It's also been evolved into a comic book, into an animated TV series, into a live-action TV series, and into a card-based mobile game. All of which are successful, and each of which feeds the general interest in the IP and drives it to a higher level than would otherwise be the case. Okay. I'll take the second question with respect to the key challenges that Tencent Cloud is facing when penetrating enterprises. That is actually sort of a lot of times the most important question. They may give you the fact that, oh, it may be expensive. They maybe give you, oh, there's no time, and all these other reasons. The fundamental reason is, okay, what is the key business proposition for converting themselves into a cloud service? I think the evolution of the mobile internet has really sort of continuously provide this kind of key reason, the key business proposition. When the customers of the businesses get online and are increasingly engaged online, then the businesses have to go online, right? When the businesses go online, their suppliers have to go online. There's a chain reaction that's happening, initially pretty slowly, but now with increasing speed, especially it's accelerated by the pandemic. In the past, when retailers look at e-commerce, it's a nice-to-have, it's an additional business. During the pandemic, they realized it's actually a must-have. By having the key business proposition for them to move online and to adopt cloud solutions, I think that's number one. Number two is really the inertia, especially more on the organizational inertia. All the businesses have their existing practices, and suddenly you say, oh, you have to move online. Yes, it's more efficient. Yes, it's more cost-effective over time, but it involves the change of behavior of a lot of internal procedures and people's behavior. I think in order to overcome that, the number one reason has to be very strong. At the same time, when we actually can create examples and role models through which a certain case have been created within an industry, then it's much easier to replicate that case in other clients. That's exactly what we're doing. We're trying to create the role models and then trying to make them into a more common set of solution, and then populate it to other players within the industry. The third one is about IT resources within those enterprises. That's the reason why we have been working with a lot of ISVs and system integrators so that they can actually help the companies. Once they have the key reason and value proposition to move online, at the same time, they have a clear blueprint to do that, the IT resources, actually, they can find in the third-party world. I think that's addressing one set of issues. The other set is about Tencent Cloud in particular. As a challenger, I think we do face many challenges, we are tackling them one by one. The first one being just building relationship with enterprises. That's not easy. We have been making good traction in the year of 2018, 2019, especially after our organization upgrade. It was actually interrupted during the pandemic, because during the pandemic, it's very hard to build new relationships. Even though you sign new contracts, it's hard to implement. That's the reason why our cloud growth was a little bit impacted in the first half and the third quarter of last year. As the world returned to normal, we have seen the relationships and the implementing projects back on track. As a result, our growth rate in the fourth quarter on the cloud business is much stronger now. The other thing is just sort of continuously building up our technology so that our product is actually competitive, our cost is competitive. That's the reason why we have invested in a lot of the new technologies, such as AMD servers, such as our T-block architecture so that we can make our solutions cost competitive. I would say finally, Tencent has got a lot of SaaS solutions on the communications and productivity side, which are market leading. In the future, when we can actually connect our cloud service with these SaaS solutions, I think that's the time when we can really leverage our competitive advantage and overcome a lot of these challenges. I hope that answers your question. Thank you. Our next question comes from Han Joon Kim from Macquarie. Please ask your question. Great. Thank you very much, management, for your time today. First one is just touching upon, I think, the relationship with Alibaba and Taobao Deals that I think the media has talked about, and please correct me if I'm wrong. I think we've probably not had too much engagement with them, I think since 2016. Should we just view this as something in isolation, or should we see that there's more room for collaboration with other ecosystems out there in China? How do we think the shifting dynamics in that kind of scenario where on one hand, I guess we have to kind of make sure we protect our user experience, and the integrity of the experience within WeChat, while also thinking about how we remain open platform and collaboration with other ecosystems out there? The second question I wanted to touch upon is in regards to your investment into Rakuten. Mikitani-san did host a call, and I think he kind of elaborated that he would want to work with you guys a little bit more deeply, and even in areas I think like games. I mean, and for you guys, is it more of a passive role if they want something like games, you're happy to give it to them? Is that kind of more strategically minded initiative where we see the ability to export some of our key kind of resources and services to other geographies? Thank you. In terms of the first question, without going into a lot of details, I would say our general principle is that we are open in nature. We have an open platform which encourage organic cooperation with all other platforms. At the same time, as a platform manager, we actually need to look after the user experience as well as protect our users' privacy, with a lot of focus, right? There's a due responsibility there, and our responsibility for the users is actually much higher. As a result, we actually have to protect our user's experience and in a lot of cases, prevent spamming, especially encouraged spamming of our users. If we actually see violation of user privacy, we'd actually sort of step in and we stop the service. That principle actually extends, not only to third parties, but also to our investee companies and sometimes our own services, right? If we see our own services actually spamming users in an unscrupulous way, we actually put in penalties too. Finally, I think, the relationship with any large company has to be mutually constructive. I think these are sort of the principles that we adhere to when we look at these relationships on the industry end. Now, in terms of our investment in the international market, I would refer you to, on the particular case of Rakuten, I refer to the press release, as well as what Miki said. I think this is a company which is a local champion in Japan. It's very innovative and it also has a very strong franchise in the area of e-commerce and FinTech and emerging in the telecom space. We are very honored to be able to work with them. We felt that by working with them, we can actually sort of help to download some of the knowhow that we have. We can help them with their capital. At the same time, they are a very competent company who can operate very independently and we felt we can actually help them to operate even more competitively in the local market as well as internationally. In terms of thinking about working with international partners, I think the approach is very similar, right? We look for very competent management teams and passionate entrepreneurs. We look for companies which has a very strong presence within the local market. They have good support by the government, they have good rapport with the consumers in the market. What we do is that we provide our resources, basically know-how as well as some capital, and maybe in some cases, some access to the Chinese market. By and large, these companies, with some help from us, will be able to perform in a brilliant way in penetrating their local market and sometimes in the international market. By engaging in these kind of partnerships, we felt that it help us to get access to exciting markets, exciting teams, exciting products around the world. Thank you. The next question comes from Gary Yu from Morgan Stanley. Please ask the question. Hi. Thank you for the opportunity to ask questions. I have two questions from my side. The first one is on FinTech. Correct me if I'm wrong, I think majority of Tencent credit business is being conducted under the WeBank subsidiary. Just wanted to check, the new kind of FinTech regulation on forming financial holding company, how does it affect the way Tencent conduct credit business in the future, if at all? How does it affect our revenue financially? The second question is related to Video Accounts. Just a follow-up question on the unique feature from content and also diverted traffic between private domain and public domain. Given these unique feature compared to other short-form video platform, do we expect the future monetization opportunity will also be a lot more different compared to what we've seen out there in other platforms, in the form of advertising, e-commerce, live streaming? Are we expecting more kind of different form of monetization opportunities going forward? If that's the case, what kind of timing are we looking at in terms of monetization? Thank you. Yeah. On WeBank, it's an affiliate. The vast majority of our loan business is actually conducted through WeBank. WeBank is a licensed bank subject to the much more stringent banking regulation measures of CBIRC as opposed to the microloan license. There's a lot of nuances in your question, right? Maybe I just try to certainly answer it in full. There is the question of what is the impact of financial holding company, right? I would say financial holding company, as a concept, is an important concept put forth by the regulators in managing the risk within the financial system. We have been paying very close attention to the relevant development. We would be completely compliant, right, if it's required to. From our understanding, the financial holding company in itself is neutral in nature. It does involve organizational change, but it doesn't really impact the businesses. What impact the real FinTech businesses are really the regulations that have been gradually put in place to regulate loan practices. If you look at what happened in the past few months, right, there have been a number of regulations that have been put in place. I have to say, because of the way that we conduct our FinTech business and the loan business, which is, I would say there are a few principles, right, that we have continuously emphasized in terms of our approach to FinTech businesses. I would like to reiterate them once again. Number one is we operate in strict compliance with rules and regulations. That's both in form as well as in substance. We are very prudent in our risk management. We have always been optimizing for quality and risk management rather than pursuing scale. We focus on products and services that benefits consumers and merchants. We also emphasize cooperation with financial institutions as opposed to disruption. With that in mind, and especially in the compliance point as well as the focus on risk management and the fact that we have been very self-restrained in terms of pursuing scale of our loan business. When you look at some of the key regulations that have been put in place in the past few months, including a 30% self-funding ratio, including lower loans to students, including clampdown on high interest rate, including max loan size of CNY 200,000, each and every single one of them, we have been compliant even before these regulations come around. I hope this actually sort of shows that for our FinTech business, we have been prudent all along the way, and as a result, we are actually sort of less affected by all these regulations. In a way, right, we actually sort of embrace these regulations, that we'll be completely compliant, whatever regulations that will be coming in place. We felt that with new regulations, with these more healthy regulations, at the end of the day, the entire industry will be healthier and it will be sustainable for longer term growth. Then in terms of just the Video Accounts, right, I would say monetization is probably sort of too far a question for us to answer at this point in time. We have always seen, when we get users, when we get user engagement, over time, there is gonna be monetization. Number one, at this point in time, we are very focused on building the ecosystem of content providers as well as the viewership. We prioritize the user experience over any monetization. Number one, even when monetization comes around, you know the practice of Tencent has always been much more self-restrained in terms of monetization. It will only come on a gradual basis. I think that's the answer on your question. Your next question comes from Eddie Leung from Bank of America. Please go ahead. Good evening. Thank you for taking my questions. It is a pretty straightforward question, but perhaps quite important. Just wonder, given the recent development in antitrust regulation, what are some of the things that Tencent can do to stay competitive in the industry while still able to address the concern of the regulators? Just a follow-up question on the Weixin ecosystem. Any target or strategic goal for Weixin's transaction ecosystem in 2021? For example, any more new initiatives to facilitate the commercialization of your merchants and service providers? Thank you. Well, in terms of the first question, I would say there are more and more focus on government regulations, and I think this is something which, to be honest, it's actually quite natural. I think, in the past, we actually have talked about this view, and we want to reiterate it, which is, as companies become large and as internet services become more and more a part of people's life, then companies need to be much more responsible, both to the users, to the governments, to society, and socially, right? This is just something that needs to be done. To some extent, it signifies the importance of the industry that we operate. In order to navigate this, I think it's a boring answer. This is basically sort of doing a lot of the things that we have been doing, but with a very strong focus on communication with the government and compliance. If you look at the operating principles of Tencent, we have always emphasized that we would be fully compliant with rules and regulations. Now I think, it's important for us to understand even more about what the government is concerned about, what the society is concerned about, and be even more compliant. Maybe even sort of with a futuristic approach, right? You anticipate what is needed and try to be sort of even more compliant in the businesses in anticipation of any rules and regulations change. We want to focus on user value and innovation. I think this is essentially what answers your question, right? The ultimate competitiveness actually come from you providing more and more user value, and you come up with exciting and innovative products that deliver more user value, but not only to the users, but also to industry partners, right? When that's done, then I think it also complies with what the government, what the society, what the users expect of you. We are very self-restrained in terms of monetization and our business practices. I think, a lot of people comment that, oh, there's one way that you can actually turbocharge your revenue. I think, we sometimes get criticism on being too much in self-control, but that's something that we'll continue to do, and we think it's going to be beneficial for us in the current environment. We embrace open platform, and we provide our open platform to a lot of industry partners and help them to grow. We embrace competition, right? But in a fair way. We embrace fair competition even within our own company, right? Because we think that fair competition actually makes the teams better. When the teams are better, they provide good products and innovation that create a lot of user value. Finally, we engage in partnerships while respecting our partners' independence, and this has been our principle in our investments, in our business partnerships, and we'll continue with that. With all these existing practices, and we continue to put through our efforts in exercising them, right? I think, over time, we would be able to comply with the rules and regulations and also present ourselves as a healthy force in the industry and also fulfill the expectation of the society as a whole. The second question is about? Weixin GMV. The Weixin GMV, I don't think we have any target right now. The Weixin GMV has been increasing, I think the reason is because of the fact that more and more merchants, as well as service providers, look at online as important. The importance was especially heightened during the pandemic. In the past, they look at online as an additional channel. Now they look at online as an indispensable channel. The second one is more and more companies and e-commerce players and service players now value private domain more and more. In the past, when they look at online, they said, if it's additional channel, it's okay for them to host their users on the public domain. Over time, when they feel that online is an indispensable part of their future, then they want to engage with their users, like the way that they engage with their users in their shops. The private domain is becoming more and more important, and Mini Programs actually allow them to engage with their users in a private domain. Now, we have also added a lot of tools for them to engage with these users. That's the third reason. We have had official accounts, we have had Weixin Payments, but now we are adding Mini Shops, we're adding Video Accounts, we're adding live streaming, and a lot of these tools are actually helping them to manage their customers online on the private domain better and better. With all these factors and with also a continuous education process and the establishment of role models within the industries, the ecosystem of Mini Programs just keep on getting more and more vibrant, and we're very happy to see that. Operator, we will take two more questions. Thank you. Certainly. The next question comes from John Choi from Daiwa Capital Markets. Please go ahead. Thank you for taking my question. I have two questions. I think on the online games international part, you mentioned that you guys will continue to collaborate with renowned console and game and anime IPs going forward. Would this be another strategy for both the domestic and the international market? Just quickly a follow-up also on that is, in terms of the investment, it seems that you guys are stepping up more on the PC and console studios. Could you share your thoughts on whether we're going to be more serious in these two genres going forward? A quick follow-up is on your online advertising. Given that some verticals such as online education has been seeing some challenges, what are the trends that you're seeing despite all the changes in the industry? Thank you. On the game question, yes, we absolutely seek to work with intellectual property to create games that we think can resonate both internationally as well as in China. Yes, we have been very active investing in studios that are active on console and PC. We've also been very active investing in studios that are focused on mobile. In reality, our mental framework is not that we want to invest in a certain number of console studios, a certain number of PC studios, a certain number of mobile studios. It's that we want to invest in the best or the future best studios within each genre of games. Sometimes that genre of games is particularly well-developed in China, in which case, the best studio will often, not always, but often be mobile centric. Sometimes, that studio might be in Japan or the United States, where the best studios are often console centric. Quite often for the sort of smaller deeper genres, the best studios are in Europe, where they'll typically be PC centric. Our view is that over time, it's becoming easier to cross platforms, and so we're much less interested in whether a studio has mobile or console or PC expertise, and much more interested in whether it has simulation expertise or card game expertise or role-playing expertise that can move across different hardware platforms over time. That's on the game front. On the advertising side, I think anytime you look at the advertising market, the short term is always murky because it's sensitive to GDP growth, which is unknown at the moment, as it always is. It's sensitive to regulatory changes. Right now we have some uncertainty globally around the impact of Apple's IDFA changes, although in China, that will be mitigated by the fact that Apple is only a teeny percentage of mobile traffic. It is also sensitive to changes within specific advertiser industries. For example, in China, it is possible there will be rules around advertising by the education industry, which could have some negative impact on the advertising industry as a whole. I think at any point in time in the next few months, where advertising always looks cloudy and confusing. Over the longer term, advertising is a function of GDP growth. If you are an optimist and you believe that economies tend to grow over time, which we do, then advertising will tend to grow over time. I think what you can see very clearly from 2020 is that whatever the advertising industry growth rate, for a number of reasons, we tend to outgrow the industry because we have more activity, more traffic, more tools, more resources, less monetization than the industry in aggregate. In good times like 2019 and in bad times like 2020, we tended to outgrow the overall advertising industry, and over the long term, we think advertising is a growth industry in and of itself. Thank you. Your last question comes from William Packer from Exane BNP Paribas. Please go ahead. Hi, management. Many thanks for taking my questions, and congrats on the strong numbers. Last quarter on this call, you gave some helpful initial perspectives on the draft announcement regarding antitrust and platform rules. Could you provide an updated view now that we've had a bit more information? That'll be helpful. Is it still right to think that your video games and digital entertainment businesses are not likely to be a focus? Then as a follow-up, in terms of acquisitions, both stakes and larger deals, should we expect the pace of your investing to change as new systems of oversight are established? Thank you. Perhaps I'll start with the second question. For better or worse, the pace of our investing activity has been relatively unusually intense during the past six months. That's not because of regulation, that's just because COVID-19 has provided a glimpse of the future, particularly for industries like games, education, healthcare, especially enterprise software as a service. We've really utilized that glimpse into the future to step up our support for independent companies in those spaces, specifically enterprise software as a service in China. As you know, historically, the very vast majority, over 95%, 99% of our investments are minority investments rather than mergers or outright acquisitions. That will remain true going forward. For that very vast majority then, a different antitrust regime will not, we believe, impact the desirability of us investing in and supporting startups and helping them to grow into bigger, better companies over time. We remain active investors both internationally as well as especially in China. Yeah. In terms of the last question, I would say because the gaming and the entertainment business is by nature much more competitive, and there are many more players in the market, and it essentially is free for all competition, right? It's less relevant for the antitrust regulations. In terms of what we should be doing, I think I would refer you back to the answer that I provided to Eddie, which is we'll continue with our focus on compliance as well as our business practices, and work very closely with the regulators and navigate this. Thank you. Thank you, operator. We are closing out. If you wish to check out our press release and other financial information, please visit the IR section of our company website at www.tencent.com. The replay of this webcast will also be available soon. Thank you, and see you next quarter Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.