腾讯音乐美股招股说明书(2022-09-15版)

424B31d278827d424b3.htm424(B)(3) TableofContents FiledPursuanttoRule424(b)(3)RegistrationNo.333-267430 PROSPECTUSSUPPLEMENT (ToProspectusdatedSeptember15,2022) TencentMusicEntertainmentGroup ClassAOrdinaryShares ScarletPunkInvestmentLimited,awholly-ownedspecialpurposevehicleofours,islendingtotheDesignatedDealer(asdefinedin“DescriptionofLiquidityArrangements”)upto42,000,000ofourClassAordinaryshares,US$0.000083pershare,orapproximately2.5%ofourtotalClassAordinarysharesissuedandoutstandingasofSeptember7,2022,tofacilitatetheproposedlistingofourClassAordinarysharesontheMainBoardofTheStockExchangeofHongKongLimited,ortheHongKongStockExchange,bywayofintroduction,ortheListing.OurClassAordinaryshareswillbetradedontheHongKongStockExchangeunderthestockcode“1698.” TheClassAordinarysharesbeinglentherebywillbeusedbythedesignateddealerstocreateadditionalliquidityofourClassAordinarysharesontheHongKongStockExchangethroughsalesatmarketpricesduringaperiodof30calendardaysfromandincludingthelistingdateofourClassAordinarysharesontheHongKongStockExchange,whichisexpectedtobeonoraboutSeptember21,2022.See“DescriptionofLiquidityArrangements.”TheClassAordinarysharesarebeingregisteredherebyinconnectionwiththesaleofsuchsharestotheextentthattheyaresoldto U.S.persons,asdefinedunderRegulationS,orfortheaccountorbenefitofU.S.persons. NeitherwenorScarletPunkInvestmentLimitedwillreceiveanyproceedsfromthelendingoftheClassAordinarysharesbeingregisteredhereby,whichwillbesoldatprevailingmarketpricesatthetimeofsaleinliquiditytradesontheHongKongStockExchangeduringthebridgingperiodwithdeliveryexpectedtooccurfromtimetotimeinaccordancewiththerulesoftheHongKongStockExchange. OurADSsarelistedontheNewYorkStockExchange,ortheNYSE,underthesymbol“TME.”EachADSrepresentstwoClassAordinaryshares.OnSeptember14,2022,thelastreportedsalepriceoftheADSsontheNYSEwasUS$4.78perADS. InvestinginourADSsandClassAordinarysharesinvolvesrisks.See“RiskFactors”beginningonpageS-34ofthisprospectussupplementandinanydocumentsincorporatedbyreferenceintothisprospectussupplementforadiscussionofcertainrisksthatshouldbeconsideredinconnectionwithaninvestmentinourClassAordinaryshares. TencentMusicEntertainmentGroupisaCaymanIslandsholdingcompany.ItdoesnotengageinoperationsitselfbutratherconductsitsoperationsthroughitsPRCsubsidiariesandconsolidatedvariableinterestentities,ortheVIEs. However,weandourdirectandindirectsubsidiariesdonot,anditisvirtuallyimpossibleforthemto,haveanyequityinterestsintheVIEsinpracticeascurrentPRClawsandregulationsrestrictforeigninvestmentincompaniesthatengageinvalue-addedtelecommunicationservicesandonlineculturalservices.Asaresult,wedependoncertaincontractualarrangementswiththeVIEstooperateasignificantportionofourbusiness.TheVIEsareownedbycertainnomineeshareholders,notus.InvestorsofourADSsarepurchasingequitysecuritiesofaCaymanIslandsholdingcompanyratherthanequitysecuritiesissuedbyoursubsidiariesandtheVIEs.Investorswhoarenon-PRCresidentsmayneverdirectlyholdequityinterestsintheVIEsundercurrentPRClawsandregulations.Asusedinthisprospectussupplement,“we,”“us,”“ourcompany,”“our,”or“TME”referstoTencentMusicEntertainmentGroupanditssubsidiaries,and,inthecontextofdescribingourconsolidatedfinancialinformation,businessoperationsandoperatingdata,ourconsolidatedVIEs. OurcorporatestructureinvolvesuniqueriskstoinvestorsintheADSs.In2019,2020and2021,theamountofrevenuesgeneratedbytheVIEsaccountedfor99.8%,99.8%and99.1%,respectively,ofourtotalnetrevenues.Asof December31,2020and2021,totalassetsoftheVIEs,excludingamountsduefromothercompaniesintheGroup,equaledto26.5%and26.9%ofourconsolidatedtotalassetsasofthesamedates,respectively.OurcontractualarrangementswiththeVIEshavenotbeentestedincourt.IfthePRCgovernmentdeemsthatourcontractualarrangementswiththeVIEsdonotcomplywithPRCregulatoryrestrictionsonforeigninvestmentintherelevantindustries,oriftheseregulationsortheinterpretationofexistingregulationschangeinthefuture,wecouldbesubjecttomaterialpenaltiesorbeforcedtorelinquishourinterestsinthoseoperationsorotherwisesignificantlychangeourcorporatestructure.WeandourinvestorsfacesignificantuncertaintyaboutpotentialfutureactionsbythePRCgovernmentthatcouldaffectthelegalityandenforceabilityofthecontractualarrangementswiththeVIEsand,consequently,significantlyaffectourabilitytoconsolidatethefinancialresultsoftheVIEsandthefinancialperformanceofourcompanyasawhole.OurADSsmaydeclineinvalueorbecomeworthlessifweareunabletoeffectivelyenforceourcontractualcontrolrightsovertheassetsandoperationsoftheVIEsthatconductasignificantportionofourbusinessinChina.See“Item3.KeyInformation—3.D.RiskFactors—RisksRelatedtoOurCorporateStructure”inourannualreportonForm20-FforthefiscalyearendedDecember31,2021,orthe2021Form20-F,and“RiskFactors—RisksRelatedtoOurCorporateStructure”inExhibit99.1toourcurrentreportonForm6-KfurnishedtotheSEConSeptember15,2022,ortheSupplemental6-K,bothofwhichdocumentsareincorporatedhereinbyreference. WefacevariouslegalandoperationalrisksanduncertaintiesasacompanybasedinandprimarilyoperatinginChina.ThePRCregula