
	Year ended December 31,
	2020		2021		2022
	RMB’million		RMB’million		RMB’million
Service costs (note i)		17,478		18,992		16,540
Advertising agency fees		505		667		609
Employee benefits expenses (note ii and note iii)		3,004		3,915		4,224
Promotion and advertising expenses		2,227		2,387		852

Notes:

(i)

Service costs mainly comprised licensing costs, revenue sharing fees paid to content creators and content delivery costs that primarily consisted of server, cloud services and bandwidth costs.

(ii)

During the years ended December 31, 2020, 2021 and 2022, the Group incurred expenses for the purpose of research and development of approximately RMB1,667 million, RMB2,339 million and RMB2,580 million, which comprised employee benefits expenses of RMB1,488 million, RMB2,050 million and RMB2,297 million, respectively. No material development expenses had been capitalized for the years ended December 31, 2020, 2021 and 2022.

(iii)

Employee benefits expenses


	Year ended December 31,
	2020		2021		2022
	RMB’million		RMB’million		RMB’million
Wages, salaries and bonuses		2,020		2,518		2,688
Welfare, medical and other expenses		373		453		508
Share-based compensation expenses		569		752		823
Contribution to pension plans		42		192		205
		3,004		3,915		4,224

Majority of the Group’s contributions to pension plans are related to the local employees in the PRC. All local employees of the subsidiaries in the PRC participate in employee social security plans established in the PRC, which cover pension, medical and other welfare benefits. The plans are organized and administered by the governmental authorities. Other than the contributions made to these social security plans, the Group has no other material commitments owing to the employees. According to the relevant regulations, the portion of premium and welfare benefit contributions that should be borne by the companies within the Group as required by the above social security plans are principally determined based on percentages of the basic salaries of employees, subject to certain ceilings and caps imposed. These contributions are paid to the respective labor and social welfare authorities and are expensed as incurred.