Overview Key strengths Key risks Highly strategic subsidiary of Tencent Holdings. Intensifying regulatory oversight. Leading player in China's online music entertainment market. Strong competition from other entertainment platforms. Minimal leverage with healthy cash flow. Weaker consumer sentiment weighs on social entertainment business. Its large music library and collaboration with Tencent Holdings Ltd. will help to preserve its significant lead in online music despite growing competition. Online music subscription revenue now accounts for about 30% of revenues, and is a source of stability amid falling social entertainment revenues that have been hurt by tightening regulations, weakening consumer sentiment and spending, and competition. We forecast online music subscription to grow robustly at 17%-20% in 2022 and 15%-17% in 2023, driven by an
