Interim Report 2013

Tencent Holdings demonstrated robust financial growth during the first half of 2013, characterized by a 38.4% year-on-year revenue increase to RMB 27.9 billion and a 27.7% rise in profit attributable to equity holders to RMB 7.7 billion. This performance underscores the company’s successful expansion across its core segments, including online games, social networks, advertising, and eCommerce. The strategic integration of internet and mobile value-added services into a single reporting segment reflects the company’s adaptation to the shifting digital landscape, where mobile platforms like WeChat—which reached 236 million monthly active users—have become central to long-term growth.

The company’s financial health remains strong, supported by RMB 33.56 billion in net cash and an upgraded 'A-' long-term corporate credit rating from S&P. While sequential profit growth faced temporary pressure due to heightened marketing expenditures for international expansion and the absence of one-time dividend income, core operational performance remained resilient. Non-GAAP measures indicate sustained profitability, and the company continues to prioritize shareholder value through active share repurchases and structured incentive schemes for its growing workforce of over 25,500 employees.

Operational focus for the period centered on navigating the transition from PC-based to mobile-centric service consumption. By enhancing mobile-specific subscriber privileges and aggressively expanding its mobile game portfolio, the company effectively mitigated declines in traditional value-added service subscriptions. With capital commitments rising to RMB 4.66 billion for infrastructure and corporate expansion, the company is positioning itself to maintain its competitive advantage in the evolving global digital market. Governance remains a priority, with the company adhering to established audit procedures and corporate conduct codes, supported by a stable ownership structure led by major shareholders MIH TC and Advance Data Services Limited.