Intensified Regulatory Scrutiny: The Chinese government's tightening regulations on data privacy, content, anti-monopoly practices, and platform responsibilities could negatively impact TME's operations, business model, and strategic initiatives, potentially leading to fines or restrictions on business activities.

Fierce Market Competition: TME faces intense competition from existing and emerging players in the online music and audio entertainment space, including NetEase Cloud Music, ByteDance platforms, and other content providers, which could impact user acquisition, retention, and market share, leading to increased marketing and content acquisition costs.

Rising Content Licensing Costs: The cost of acquiring and renewing exclusive music content licenses from record labels and artists continues to be a significant operating expense, and any substantial increase in these costs or inability to secure popular content could erode profit margins and diminish platform attractiveness.