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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. 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 2019 HKDUSD
Gross Profit188,022.62M23,997.17M
Operating income105,103.85M13,414.31M
Income before tax125,956.57M16,075.73M
Net income105,805.74M13,503.90M
Diluted EPS11.011.40
Dividends Per Share1.200.15
Total Assets1,067.12B136,954.79M
Total liabilities520,328.07M66,778.93M
Total equity484,022.94M62,119.52M
Operating cash flow169,455.88M21,627.51M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 126,879.52M 177,527.17M 274,157.94M 370,371.62M 427,814.21M
Gross Profit 73,456.24M 96,672.61M 134,824.68M 165,629.29M 188,022.62M
Operating income 44,915.96M 58,308.75M 76,359.72M 90,450.82M 105,103.85M
Income before tax 48,116.84M 63,283.88M 100,772.87M 110,129.33M 125,956.57M
Net income 35,531.64M 48,016.15M 82,457.24M 93,239.02M 105,805.74M
EBITDA 53,092.70M 73,064.71M 103,424.97M 130,736.46M 155,650.44M
Diluted EPS 3.76 5.05 8.64 9.74 11.01
Dividends Per Share 0.47 0.61 0.88 1 1.20
Total Assets 366,189.09M 441,681.31M 665,853.41M 825,072.33M 1,067.12B
Total liabilities 220,462.02M 233,896.45M 333,218.41M 418,869.14M 520,328.07M
Total equity 143,262.48M 194,817.76M 307,402.83M 368,916.93M 484,022.94M
Operating cash flow 59,478.43M 79,399.88M 128,774.43M 133,371.87M 169,455.88M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 16,366.11M 22,869.97M 35,180.85M 47,256.07M 54,601.58M
Gross Profit 9,475.07M 12,453.86M 17,301.14M 21,132.80M 23,997.17M
Operating income 5,793.68M 7,511.63M 9,798.73M 11,540.70M 13,414.31M
Income before tax 6,206.56M 8,152.55M 12,931.50M 14,051.50M 16,075.73M
Net income 4,583.20M 6,185.69M 10,581.18M 11,896.45M 13,503.90M
EBITDA 6,848.39M 9,412.57M 13,271.83M 16,680.79M 19,865.54M
Diluted EPS 0.48 0.65 1.10 1.24 1.40
Dividends Per Share 0.06 0.07 0.11 0.12 0.15
Total Assets 47,249.28M 56,967.98M 85,176.90M 105,381.97M 136,954.79M
Total liabilities 28,446.16M 30,167.92M 42,625.76M 53,499.86M 66,778.93M
Total equity 18,485.12M 25,127.56M 39,323.40M 47,119.74M 62,119.52M
Operating cash flow 7,672.08M 10,228.70M 16,524.76M 17,017.04M 21,627.51M

Valuation Measures

Dec 2019
Operating margin24.56%
Profit margin24.73%

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


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Contact Details

  • Website:
  • Address: Tencent Binhai Towers, No. 33 Haitian 2nd Road, Shenzhen, 518054, China
  • Phone: +86.755.8601.3388

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Last Updated on 26 Feb, 2021

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