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TENCENT MUSIC ENTERTAINMENT GROUP
UNAUDITED NON-IFRS FINANCIAL MEASURE
For the Year Ended December 31 Three Months Ended Septebmer 30
2017 2018 2019 2019 2020
RMB RMB RMB RMB RMB
(in millions, except per share data) (in millions, except per share data)
Profit for the period 1,319 1,832 3,977 1,023 1,135
Adjustments:
Amortization of intangible and other assets arising from acquisitions(1)329 306 362 91 102
Share-based compensation 384 487 519 129 153
Share-based payments in respect of issuance of ordinary shares to music label partners(2)- 1,519 - - -
Gains from investments(3) (70) 52 79 - (43)
Fair value change on puttable shares (4) - 35 37 9 9
Income tax effects(5) (58) (57) (71) (18) (7)
Non-IFRS Net Profit 1,904 4,174 4,903 1,234 1,349
Attributable to:
Equity holders of the Company 1,911 4,175 4,908 1,237 1,346
Non-controlling interests (7) (1) (5) (3) 3
Earnings per share for Class A and Class B ordinary shares
Basic 0.74 1.36 1.50 0.38 0.41
Diluted 0.72 1.32 1.47 0.37 0.40
Earnings per ADS (2 Class A shares equal to 1 ADS)
Basic 2.71 3.00 0.76 0.81
Diluted 2.64 2.93 0.74 0.80
Shares used in earnings per Class A and Class B ordinary share computation:
Basic 2,593 3,076 3,273 3,269 3,317
Diluted 2,639 3,159 3,348 3,332 3,362
ADS used in earnings per ADS computation
Basic 1,538 1,636 1,635 1,658
Diluted 1,580 1,674 1,666 1,681
(1) Represents the amortization of identifiable assets, including intangible assets and prepayments for music content, resulting from acquisitions
(2) Represents the excess of the then fair value of the ordinary shares we issued to Warner Music Group and Sony Music Entertainment over the aggregate consideration we received in October 2018
(3) Including the net gains on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments and other expenses in relation to equity transactions of investments
(4) Represents the fair value changes on the put liability of certain shares issued in 2018
(5) Represents the income tax effects of amortization of identifiable assets, including intangible assets and prepayments for music content, resulting from acquisitions
