Financial

Annual Report 2019: Tencent Holdings Limited

Published by Tencent

Summary

Tencent Holdings Limited delivered a strong 2019 performance, reporting revenue of RMB 377.3 billion and net profit attributable to equity holders of RMB 93.3 billion, reflecting 20 % and 19 % year‑over‑year growth respectively. The group’s core digital ecosystem—encompassing WeChat, online gaming, and value‑added services—continued to expand, with monthly active users reaching 1.16 billion and subscription revenue rising to RMB 180 million. FinTech and Cloud segments accounted for 27 % of total revenue, up 39 %, driven by a billion‑transaction daily average in mobile payments and cloud revenues surpassing RMB 17 billion. Operating profit surged 52 % to RMB 28.6 billion in Q4, while gross margin improved to 56 %. Adjusted EBITDA rose to RMB 147.4 billion, and free cash flow for the quarter reached RMB 37.9 billion. Governance structures remained robust, with a nine‑member board comprising executive, non‑executive and independent directors supported by five committees overseeing audit, risk, investment, nomination and remuneration. Share‑option programmes granted over 112 million options to directors, employees and consultants, with a weighted average fair value of USD 6.00 per share. The company maintained strong liquidity, with cash and short‑term deposits totaling RMB 65.9 billion and a debt‑to‑EBITDA ratio of 1.50, while long‑term borrowings increased modestly to RMB 109.9 billion. ESG initiatives highlighted energy‑efficient data centres, a 1.26–1.52 PUE average and significant coal‑consumption reductions, alongside employee welfare programmes that earned consecutive best‑employer awards. The company also intensified anti‑fraud, privacy and supplier governance measures, deploying a 400 GB anti‑DDoS platform and expanding its Healthy Gameplay System. Overall, Tencent’s 2019 results demonstrate continued revenue diversification, disciplined capital allocation and a commitment to sustainable, compliant growth across its global operations.

From the report

Tencent Hi Tencent Holdings Limited Incorporated in the Cayman Islands with limited liability FEA RA (Stock Code 1 : 700) 2019 Annual Report smart communication inspires # E

CONTENTS 2 CORPORATE INFORMATION 3 FINANCIAL SUMMARY 4 CHAIRMAN’S STATEMENT 11 MANAGEMENT DISCUSSION AND ANALYSIS 28 DIRECTORS’ REPORT 70 CORPORATE GOVERNANCE REPORT 97 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 127 INDEPENDENT AUDITOR’S REPORT 136 CONSOLIDATED INCOME STATEMENT 137 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 138 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 141 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 145 CONSOLIDATED STATEMENT OF CASH FLOWS 147 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 265 DEFINITION

Corporate Information DIRECTORS INVESTMENT COMMITTEE PRINCIPAL PLACE OF BUSINESS Executive Directors Lau Chi Ping Martin (Chairman) IN HONG KONG Ma Huateng (Chairman) Ma Huateng 29/F., Three Pacific Place Lau Chi Ping Martin Charles St Leger Searle No. 1 Queen’s Road East Wanchai Non-Executive Directors NOMINATION COMMITTEE Hong Kong Jacobus Petrus (Koos) Bekker Ma Huateng (Chairman) CAYMAN ISLANDS PRINCIPAL Charles St Leger Searle Li Dong Sheng SHARE REGISTRAR AND Iain Ferguson Bruce TRANSFER OFFICE Independent Non-Executive Directors Ian Charles Stone Li Dong Sheng Charles St Leger Searle SMP Partners (Cayman) Limited Iain Ferguson Bruce REMUNERATION COMMITTEE Royal Bank House – 3rd Floor Ian Charles Stone 24 Shedden Road Yang Siu Shun Ian Charles Stone (Chairman) P.O. Box 1586 Ke Yang Li Dong Sheng Grand Cayman, KY1-1110 (appointed with effect from Jacobus Petrus (Koos) Bekker Cayman Islands 15 August 2019) AUDITOR HONG KONG BRANCH SHARE AUDIT COMMITTEE REGISTRAR AND TRANSFER PricewaterhouseCoopers OFFICE Yang Siu Shun (Chairman) Certified Public Accountants Computershare Hong Kong Investor Iain Ferguson Bruce PRINCIPAL BANKERS Services Limited Ian Charles Stone Shops 1712-1716, 17th Floor Charles St Leger Searle Bank of China Limited Hopewell Centre CORPORATE GOVERNANCE The Hongkong and Shanghai Banking 183 Queen’s Road East COMMITTEE Corporation Limited Wan Chai, Hong Kong

nvestor Iain Ferguson Bruce PRINCIPAL BANKERS Services Limited Ian Charles Stone Shops 1712-1716, 17th Floor Charles St Leger Searle Bank of China Limited Hopewell Centre CORPORATE GOVERNANCE The Hongkong and Shanghai Banking 183 Queen’s Road East COMMITTEE Corporation Limited Wan Chai, Hong Kong Charles St Leger Searle (Chairman) REGISTERED OFFICE COMPANY WEBSITE Iain Ferguson Bruce Cricket Square www.tencent.com Ian Charles Stone Hutchins Drive, P.O. Box 2681 Yang Siu Shun Grand Cayman KY1-1111 STOCK CODE Ke Yang Cayman Islands 700 (appointed with effect from 15 August 2019) TENCENT GROUP HEAD OFFICE Tencent Binhai Towers No. 33 Haitian 2nd Road Nanshan District Shenzhen, 518054 The PRC 2 Tencent Holdings Limited

> **[Chart page]** This page contains visual data — view in PDF for the best experience. Financial Summary CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year ended 31 December 2015 2016 2017 2018 2019 RMB’Million RMB’Million RMB’Million RMB’Million RMB’Million Revenues 102,863 151,938 237,760 312,694 377,289 Gross profit 61,232 84,499 116,925 142,120 167,533 Profit before income tax 36,216 51,640 88,215 94,466 109,400 Profit for the year 29,108 41,447 72,471 79,984 95,888 Profit attributable to equity holders of the Company 28,806 41,095 71,510 78,719 93,310 Total comprehensive income for the year 44,723 48,617 79,061 67,760 119,901 Total comprehensive income attributable to equity holders of the Company 44,416 48,194 78,218 66,339 116,670 Non-IFRS profit attributable to equity holders of the Company 32,410 45,420 65,126 77,469 94,351 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at 31 December 2015 2016 2017 2018 2019 RMB’Million RMB’Million RMB’Million RMB’Million RMB’Million Assets Non-current assets 151,440 246,745 376,226 506,441 700,018 Current assets 155,378 149,154 178,446 217,080 253,968 Total assets 306,818 395,899 554,672 723,521 953,986 Equity and liabilities Equity attributable to equity holders of the Company 120,035 174,624 256,074 323,510 432,706 Non-controlling interests 2,065 11,623 21,019 32,697 56,118 Total equity 122,100 186,247 277,093 356,207 488,824 Non-current liabilities 60,312 108,455 125,839 164,879 225,006 Current liabilities 124,406 101,197 151,740 202,435 240,156 Total liabilities 184,718 209,652 277,579 367,314 465,162 Total equity and liabilities 306,818 395,899 554,672 723,521 953,986

quity 122,100 186,247 277,093 356,207 488,824 Non-current liabilities 60,312 108,455 125,839 164,879 225,006 Current liabilities 124,406 101,197 151,740 202,435 240,156 Total liabilities 184,718 209,652 277,579 367,314 465,162 Total equity and liabilities 306,818 395,899 554,672 723,521 953,986 Annual Report 2019 3

Pages: 274
Words: 102,201
Type: Financial

Topics

View this document on Game Industry Library.

Related Documents

Financial

Financial Results: Fiscal Year Ending March 2019

Record high profits were achieved! FY2017 Strengthening digital marketing FY2018 YoY Change Amount Ratio Amount Ratio Amount Rate of change Sales 38,926 100.0% 38,968 100.0% 42 0.1% Operating 30.1% 0 Developing new markets in Asia Profit 11,711 12,092 31.0% 381 3.3% Ordinary 18,293 47.0% 11,711 47.0% Profit 18,307 ...

market-analysis marketing investment+3

Koei Tecmo

Report

2024 Interim Report

Incorporated in the Cayman Islands with limited liability smart communication inspires 2024 P Interim Report 33 Financial Performance Highlights Financial Performance Highlights 88 Management Discussion and Analysis 22 Report on Review of Interim Financial Information 23 Condensed Consolidated Income Statement 23 Condensed Consolidated Income Statement 24 Condensed Consolidated Statement of Comprehensive Income 24 Condensed Consoli...

market-analysis investment global+1

Tencent

Report

2023 Annual Report: Tencent Holdings

7 MANAGEMENT DISCUSSION AND ANALYSIS 85 CORPORATE GOVERNANCE REPORT 85 CORPORATE GOVERNANCE REPORT 119 INDEPENDENT AUDITOR'S REPORT 119 INDEPENDENT AUDITOR’S REPORT 128 CONSOLIDATED INCOME STATEMENT 128 CONSOLIDATED INCOME STATEMENT 129 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 130 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 133 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 137 CONSOLIDATED STATEMENT OF CASH FLOWS 139 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1...

market-analysis investment china+1

Tencent

Report

2021 Interim Report

Incorporated in the Cayman Islands with limited liability 3 Financial Performance Highlights 3 Financial Performance Highlights 9 Management Discussion and Analysis 9 Management Discussion and Analysis 23 Report on Review of Interim Financial Information Report on Review of Interim Financial Information 24 Consolidated Income Statement 25 Consolidated Statement of Comprehensive Income 26 Consolidated Statement of Financial Position 29 Consolidated Statement o...

market-analysis investment mergers-acquisitions+2

Tencent