Analysis of Tencent Music (03628.HK) 2025 Performance and Industry Dynamics

This report is based on Tushare dc_hot data [0] (Oriental Wealth App HK Market Surge List) featuring 03628.HK (Tencent Music Entertainment Group).

Tencent Music showed robust 2025 performance with a 3.54% single-day increase on November24 [0]. Its Q2 results exceeded expectations: total revenue 84.4B yuan (+17.9% YoY), adjusted net profit26.4B yuan (+33.0% YoY) [0]. Q3 revenue further grew to84.6B yuan (+20.6% YoY) [5].

The Chinese music streaming industry grew steadily in2025 with market size expansion (增速 slowing) [6]. AI emerged as a key driver for personalized recommendations and content creation [0]. Paid users and ARPU (11.7 yuan) were major revenue contributors [0].

While maintaining leading market share, Tencent Music faces challenges from ByteDance’s Tomato Music (free model impact) [3] and NetEase Cloud Music [0]. Q3 MAU declined4.3% YoY due to competition [0]. Short video platforms also impacted traditional streaming [0].

Drivers: AI applications and online music service growth [0]. Risks: Intensified competition (ByteDance, NetEase) and changing user preferences [0][3].

Tencent Music has strong financial performance but faces competitive pressures. The industry’s AI-driven growth provides opportunities, but competition requires strategic adaptation.