Technology Services
Tencent Holdings Ltd.
Company Background
Tencent Holdings is a Chinese Internet services giant based in Shenzhen, Guangdong Province. It is the biggest rival of Alibaba Group, the country's largest e-commerce company. Baidu, Alibaba and Tencent are commonly known collectively as BAT in China.
Tencent was established in 1998. With the hit of its social network service QQ, users of its smartphone chat app WeChat surged, reaching 549 million at the end of March 2015. WeChat is gaining popularity with young Chinese.
As its revenue mainly comes from PC and smartphone games as well as advertising, increasing QQ and WeChat users is likely to lead to higher earnings.
Ma Huateng, founder and CEO of Tencent, is a young entrepreneur from Shantou, the coastal eastern part of Guangdong Province, where many competent overseas Chinese have their roots. He is also a major shareholder of Tencent, owning some 10% of the company.
Business Summary
Tencent Holdings Ltd. engages in the provision of value-added services, online advertising services, and fintech and business services. It operates through the following segments: Value-Added Services, FinTech and Business Services, Online Advertising, and Others. The Value-Added Services segment is involved in online and mobile games, community value-added services, and applications across various Internet and mobile platforms. The FinTech and Business Services segment provides fintech and cloud services, which include commissions from payment, wealth management and other services. The Online Advertising segment represents display based and performance-based advertisements. The Other segment is composed of trademark licensing, software development services, software sales, and other services. The company was founded by Yi Dan Chen, Hua Teng Ma, Chen Ye Xu, Li Qing Zeng, and Zhi Dong Zhang on November 11, 1998 and is headquartered in Shenzhen, China.
Financial Highlights
| Dec 2022 | HKD | USD |
| Revenue | 644,876.43M | 82,354.55M |
| Gross Profit | 270,607.57M | 34,558.19M |
| Operating income | 119,568.29M | 15,269.58M |
| Income before tax | 263,222.13M | 33,615.03M |
| Net income | 218,903.68M | 27,955.30M |
| EBITDA | 190,665.50M | 24,349.11M |
| Diluted EPS | 22.57 | 2.88 |
| Dividends Per Share | 2.40 | 0.30 |
| Total Assets | 1,771.83B | 227,013.68M |
| Total liabilities | 892,882.37M | 114,399.50M |
| Total equity | 809,934.35M | 103,771.88M |
| Operating cash flow | 171,462.90M | 21,896.83M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 370,371.62M | 427,814.21M | 541,692.11M | 675,060.34M | 644,876.43M |
| Gross Profit | 165,629.29M | 188,022.62M | 244,184.18M | 290,106.32M | 270,607.57M |
| Operating income | 90,450.82M | 105,103.85M | 135,114.01M | 139,205.48M | 119,568.29M |
| Income before tax | 110,129.33M | 125,956.57M | 198,163.32M | 318,785.52M | 263,222.13M |
| Net income | 93,239.02M | 105,805.74M | 179,619.01M | 270,957.93M | 218,903.68M |
| EBITDA | 130,736.46M | 155,650.44M | 191,895.36M | 208,620.81M | 190,665.50M |
| Diluted EPS | 9.74 | 11.01 | 18.56 | 27.94 | 22.57 |
| Dividends Per Share | 1 | 1.20 | 1.60 | 1.60 | 2.40 |
| Total Assets | 825,072.33M | 1,067.12B | 1,580.96B | 1,972.34B | 1,771.83B |
| Total liabilities | 418,869.14M | 520,328.07M | 658,483.24M | 899,921.04M | 892,882.37M |
| Total equity | 368,916.93M | 484,022.94M | 834,671.75M | 986,317.85M | 809,934.35M |
| Operating cash flow | 133,371.87M | 169,455.88M | 218,902.21M | 212,006.24M | 171,462.90M |
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 47,256.07M | 54,601.58M | 69,841.73M | 86,848.64M | 82,354.55M |
| Gross Profit | 21,132.80M | 23,997.17M | 31,483.28M | 37,323.09M | 34,558.19M |
| Operating income | 11,540.70M | 13,414.31M | 17,420.59M | 17,909.22M | 15,269.58M |
| Income before tax | 14,051.50M | 16,075.73M | 25,549.69M | 41,012.76M | 33,615.03M |
| Net income | 11,896.45M | 13,503.90M | 23,158.73M | 34,859.59M | 27,955.30M |
| EBITDA | 16,680.79M | 19,865.54M | 24,741.55M | 26,839.72M | 24,349.11M |
| Diluted EPS | 1.24 | 1.40 | 2.39 | 3.59 | 2.88 |
| Dividends Per Share | 0.12 | 0.15 | 0.20 | 0.20 | 0.30 |
| Total Assets | 105,381.97M | 136,954.79M | 203,893.85M | 252,985.33M | 227,013.68M |
| Total liabilities | 53,499.86M | 66,778.93M | 84,923.39M | 115,429.25M | 114,399.50M |
| Total equity | 47,119.74M | 62,119.52M | 107,646.10M | 126,511.02M | 103,771.88M |
| Operating cash flow | 17,017.04M | 21,627.51M | 28,223.61M | 27,275.27M | 21,896.83M |
Valuation Measures
| Dec 2022 | |
| PER | 14.53 |
| ROA | 11.69% |
| ROE | 24.37% |
| Operating margin | 18.54% |
| Profit margin | 33.94% |
Key executives
- Executive Chairman & Chief Executive Officer: Hua Teng Ma
- President: Chi Ping Lau
- COO & President-Interactive Entertainment Group: Yu Xin Ren
- Chief Financial Officer & Senior Vice President: Shek Hon Lo
- Chief Information Officer: Chen Ye Xu
Shareholders
- Prosus NV (25.9%)
- MA HUA TENG PONY (8.4%)
- The Vanguard Group, Inc. (1.9%)
- BlackRock Fund Advisors (1.4%)
- Norges Bank Investment Management (0.9%)
- E Fund Management Co., Ltd. (0.7%)
- Baillie Gifford & Co. (0.6%)
- Fidelity Management & Research Co. LLC (0.5%)
- BlackRock Advisors (UK) Ltd. (0.4%)
- Hang Seng Investment Management Ltd. (0.4%)
Contact Details
- Website:http://www.tencent.com
- Address: Tencent Binhai Towers, No. 33 Haitian 2nd Road, Shenzhen, 518054, China
- Phone: +86.755.8601.3388
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- THL A25 Ltd.
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