Technology Services
Tencent Holdings Ltd.
In the news
- Analysis: Xi sees Alibaba and Tencent as rising threats to power Dec 17, 2020
- How China reversed the new Great Game of strategic competition Aug 18, 2020
- Most Asian stocks climb as global rally strengthens Aug 13, 2020
- US health chief's Taiwan visit calibrated to incense China Aug 13, 2020
- Tencent tries to ease investor fears over US ban as earnings grow Aug 13, 2020 See more articles on 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. is an investment holding company. It operates through the following segments: Value-Added Services, FinTech and Business Services, Online Advertising, and Others. The Value-added Services segment involves 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 consists 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 2020 | HKD | USD |
| Revenue | 541,692.11M | 69,841.73M |
| Gross Profit | 244,184.18M | 31,483.28M |
| Operating income | 135,114.01M | 17,420.59M |
| Income before tax | 198,163.32M | 25,549.69M |
| Net income | 179,619.01M | 23,158.73M |
| EBITDA | 191,895.36M | 24,741.55M |
| Diluted EPS | 18.56 | 2.39 |
| Dividends Per Share | 1.60 | 0.20 |
| Total Assets | 1,580.96B | 203,893.85M |
| Total liabilities | 658,483.24M | 84,923.39M |
| Total equity | 834,671.75M | 107,646.10M |
| Operating cash flow | 218,902.21M | 28,223.61M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | |
| Revenue | 177,527.17M | 274,157.94M | 370,371.62M | 427,814.21M | 541,692.11M |
| Gross Profit | 96,672.61M | 134,824.68M | 165,629.29M | 188,022.62M | 244,184.18M |
| Operating income | 58,308.75M | 76,359.72M | 90,450.82M | 105,103.85M | 135,114.01M |
| Income before tax | 63,283.88M | 100,772.87M | 110,129.33M | 125,956.57M | 198,163.32M |
| Net income | 48,016.15M | 82,457.24M | 93,239.02M | 105,805.74M | 179,619.01M |
| EBITDA | 73,064.71M | 103,424.97M | 130,736.46M | 155,650.44M | 191,895.36M |
| Diluted EPS | 5.05 | 8.64 | 9.74 | 11.01 | 18.56 |
| Dividends Per Share | 0.61 | 0.88 | 1 | 1.20 | 1.60 |
| Total Assets | 441,681.31M | 665,853.41M | 825,072.33M | 1,067.12B | 1,580.96B |
| Total liabilities | 233,896.45M | 333,218.41M | 418,869.14M | 520,328.07M | 658,483.24M |
| Total equity | 194,817.76M | 307,402.83M | 368,916.93M | 484,022.94M | 834,671.75M |
| Operating cash flow | 79,399.88M | 128,774.43M | 133,371.87M | 169,455.88M | 218,902.21M |
| Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | |
| Revenue | 22,869.97M | 35,180.85M | 47,256.07M | 54,601.58M | 69,841.73M |
| Gross Profit | 12,453.86M | 17,301.14M | 21,132.80M | 23,997.17M | 31,483.28M |
| Operating income | 7,511.63M | 9,798.73M | 11,540.70M | 13,414.31M | 17,420.59M |
| Income before tax | 8,152.55M | 12,931.50M | 14,051.50M | 16,075.73M | 25,549.69M |
| Net income | 6,185.69M | 10,581.18M | 11,896.45M | 13,503.90M | 23,158.73M |
| EBITDA | 9,412.57M | 13,271.83M | 16,680.79M | 19,865.54M | 24,741.55M |
| Diluted EPS | 0.65 | 1.10 | 1.24 | 1.40 | 2.39 |
| Dividends Per Share | 0.07 | 0.11 | 0.12 | 0.15 | 0.20 |
| Total Assets | 56,967.98M | 85,176.90M | 105,381.97M | 136,954.79M | 203,893.85M |
| Total liabilities | 30,167.92M | 42,625.76M | 53,499.86M | 66,778.93M | 84,923.39M |
| Total equity | 25,127.56M | 39,323.40M | 47,119.74M | 62,119.52M | 107,646.10M |
| Operating cash flow | 10,228.70M | 16,524.76M | 17,017.04M | 21,627.51M | 28,223.61M |
Valuation Measures
| Dec 2020 | |
| PER | 29.79 |
| ROA | 13.56% |
| ROE | 27.24% |
| Operating margin | 24.94% |
| Profit margin | 33.15% |
Key executives
- Executive Chairman & Chief Executive Officer: Hua Teng Ma
- President & Executive Director: 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 (28.8%)
- MA HUA TENG PONY (8.3%)
- The Vanguard Group, Inc. (1.8%)
- BlackRock Fund Advisors (1.2%)
- Baillie Gifford & Co. (0.8%)
- Norges Bank Investment Management (0.8%)
- Fidelity Management & Research Co. LLC (0.7%)
- T. Rowe Price Associates, Inc. (Investment Management) (0.6%)
- JPMorgan Investment Management, Inc. (0.5%)
- Invesco Advisers, Inc. (0.5%)
Contact Details
- Website:http://www.tencent.com
- Address: Tencent Binhai Towers, No. 33 Haitian 2nd Road, Shenzhen, 518054, China
- Phone: +86.755.8601.3388
Related Companies
- Double Combo Holding Ltd.
- Serene Century Ltd.
- Tenup Entertainment Netherlands BV
- Mount Yandang Investment Ltd.
- Eidetic Investment Ltd.
- Beijing BIZCOM Technology Co., Ltd.
- TJ Sports Culture Development (Shanghai) Co. Ltd.
- Proximagamma Pvt Ltd.
- Concerto HK2 Co., Ltd.
- Tencent Cloud Europe BV
- Kapok Tree Investment Ltd.
- THL A25 Ltd.
- THL A Ltd.
- Shenzhen Tencent Commercial Management Co. Ltd.
- Tencent Technology (Wuhan) Co., Ltd.
- Nanjing Wang Dian Technology Co., Ltd.
- Cornflower Investment Ltd.
- Nectarine Investment Ltd.
- Linen Investment Ltd.
- Poyang Lake Investment Ltd.
- Tencent Ltd.
- Tencent Technology (Chengdu) Co., Ltd.
- Beijing Tencent Culture Media Co., Ltd.
- Tch Sunglow Ltd.
- Tencent Cyber (Tianjin) Co., Ltd.
- Elite Strength Ltd.
- TenPay Payment Technology Co., Ltd.
- Image Flag Investment (HK) Ltd.
- Morerespark Ltd.
- Great Summer Ltd.
Competitors
- Microsoft Corporation
- Mail.ru Group Ltd. Sponsored GDR
- NetEase, Inc
- Electronic Arts Inc.
- Sohu.com Limited Sponsored ADR
- Alibaba Group Holding Ltd.
- iQIYI, Inc. Sponsored ADR Class A
- Baidu, Inc. Class A
- Phoenix New Media Ltd. Sponsored ADR Class A
- Gravity Co., Ltd. Sponsored ADR
- Tian Ge Interactive Holdings Ltd
- iDreamSky Technology Holdings Limited
- Netmarble Corp.
- Starbreeze AB
- Fuchun Technology Co., Ltd. Class A
- UCloud Technology Co., Ltd. Class A
- NetDragon Websoft Holdings Limited
- DouYu International Holdings Ltd. Sponsored ADR
- Facebook, Inc. Class A
- Qutoutiao, Inc. Sponsored ADR Class A
- Roblox Corp. Class A
- Aurora Mobile Ltd. Sponsored ADR Class A
- Spotify Technology SA
- Xunlei Ltd. ADR
- Ronglian Group Ltd. Class A
- G-Bits Network Technology (Xiamen) Co., Ltd. Class A
- SciPlay Corp. Class A
- Zynga Inc. Class A
- 36Kr Holdings Inc ADR Class A
- Twitter, Inc.
Copyright © 2021 FactSet Research Systems Inc. All rights reserved.
Last Updated on 7 May, 2021
Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.