Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of transactions between related parties [abstract]

Summary of the Major Related Parties and their Relationships

The table below sets forth the major related parties and their relationships with the Group as at December 31, 2023:

Name of related parties	Relationship with the Group
Tencent and its subsidiaries other than the entities controlled by the Group (“Tencent Group”)	The Company’s principal owner
China Literature Limited (“China Literature”)	Tencent’s subsidiary

Disclosure of Transactions Between Related Parties

For the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows:

	2021		2022		2023
	RMB’million		RMB’million		RMB’million
Revenue
Online music services to Tencent Group (note i)		364		338		172
Online music services to the Company’s associates and associates of    Tencent Group		412		276		397
Social entertainment services and others to Tencent Group, the    Company’s associates and associates of Tencent Group		170		71		55
Expenses
Operating expenses recharged by Tencent Group		1,260		1,272		1,188
Advertising agency cost to Tencent Group		652		556		755
Content royalties to Tencent Group, the Company’s associates and    associates of Tencent Group (note ii)		541		612		796
Other costs to the Company’s associates and associates of Tencent    Group		176		68		26

Notes:

(i)Including revenue from content sublicensing, online advertising and subscriptions provided to Tencent Group pursuant to the Business Cooperation Agreement, which was renewed in August 2023.

(ii)In March 2020, the Group signed a five-year strategic partnership with China Literature for derivative content in the form of audiobooks of online literary works, with an aggregate total minimum guarantee payable to China Literature of RMB250 million, and any excess portion will be shared based on a pre-determined percentage. The present value of the minimum guarantee of RMB227 million was recognized as intangible assets in March 2020. Amortization expense for the years ended December 31, 2021 and 2022 was included in the content royalties to Tencent Group presented above.

In September 2022, the Group revised the strategic partnership arrangement with China Literature as revenue-sharing arrangement, the residual minimum guarantee profit sharing payable amounted to RMB150 million was cancelled, and the related intangible assets was derecognized correspondingly.

Summary of Balance with Related Parties

(b)Balances with related parties

	As at December 31,
		2022		2023
		RMB’million		RMB’million
Included in accounts receivable from related parties:
Tencent Group (note)			1,760		1,824
The Company’s associates and associates of Tencent Group			84		21
Included in prepayments, deposits and other assets from related parties:
Tencent Group			72		54
The Company’s associates and associates of Tencent Group			87		121
Included in accounts payable to related parties:
Tencent Group			1,231		667
The Company’s associates and associates of Tencent Group			190		269
Included in other payables and accruals to related parties:
Tencent Group			469		491
The Company’s associates and associates of Tencent Group			22		2

Disclosure of Information About Key Management Personnel

(c)Key management personnel compensation

	2021		2022		2023
	RMB’million		RMB’million		RMB’million
Short-term employee benefits		70		69		68
Share-based compensation		153		135		95
		223		204		163