Financial

2023 Interim Report: Tencent

Published by Tencent

Summary

Tencent’s 2023 interim report details a period of resilient financial growth and strategic operational refinement. For the first half of 2023, the company achieved total revenues of RMB 299.2 billion, representing a year-on-year increase from the RMB 269.5 billion recorded in the same period of 2022. Profit attributable to equity holders rose significantly to RMB 52.01 billion, up from RMB 42.03 billion in the prior year. This performance was primarily driven by robust expansion in online advertising and FinTech services, alongside a disciplined approach to cost management that improved overall margins despite a slight revenue plateau in domestic gaming. The company maintains a strong liquidity position, reporting RMB 17.7 billion in net cash as of June 30, 2023, and a substantial increase in net cash generated from operating activities to RMB 102.98 billion. Financial stability is further supported by a conservative debt-to-adjusted EBITDA ratio of 1.66. While the company continues to manage a massive investment portfolio valued at approximately RMB 713.7 billion, it has actively adjusted its holdings, notably through the distribution in specie of Meituan shares. These financial maneuvers, combined with an active share repurchase program that saw 47.6 million shares cancelled in the first half of the year, reflect a commitment to enhancing long-term shareholder value. Operationally, the company is pivoting toward generative AI and Model-as-a-Service offerings to sustain future growth. While headcount was reduced to 104,503 employees, the company maintains high retention rates and has consolidated its equity incentive programs into a unified 2023 Share Award Scheme. Despite facing a RMB 2.99 billion regulatory fine related to historical Tenpay operations and volatility in investment-related gains, the company’s diversified business model across Value-Added Services, advertising, and FinTech services provides a stable foundation for ongoing operations within the Chinese digital economy.

From the report

CONTENTS CONTENTS 2 Corporate Information 2 Corporate Information 3 Financial Performance Highlights 5 Chairman’s Statement 8 Management Discussion and Analysis 22 Report on Review of Interim Financial Information 23 Condensed Consolidated Income Statement 24 Condensed Consolidated Statement of Comprehensive Income 25 Condensed Consolidated Statement of Financial Position 28 Condensed Consolidated Statement of Changes in Equity 28 Condensed Consolidated Statement of Changes in Equity 32 Condensed Consolidated Statement of Cash Flows 32 Condensed Consolidated Statement of Cash Flows 34 Notes to the Interim Financial Information 34 Notes to the Interim Financial Information 89 Other Information 89 Other Information 117 Definition 117 Definition

Corporate Information Corporate Information DIRECTORS NOMINATION COMMITTEE PRINCIPAL PLACE OF BUSINESS DIRECTORS NOMINATION COMMITTEE IN HONG KONG PRINCIPAL PLACE OF BUSINESS Executive Directors Ma Huateng (Chairman) IN HONG KONG Ma Huateng (Chairman) Li Dong Sheng Lau Chi Ping Martin Ian Charles Stone (ceased to be a director Yang Siu Shun with effect from 17 May 2023) Charles St Leger Searle Non-Executive Directors REMUNERATION COMMITTEE Non-Executive Directors REMUNERATION COMMITTEE Jacobus Petrus (Koos) Bekker Ian Charles Stone (Chairman) Jacobus Petrus (Koos) Bekker Ian Charles Stone (Chairman) Charles St Leger Searle Li Dong Sheng Jacobus Petrus (Koos) Bekker Jacobus Petrus (Koos) Bekker Independent Non-Executive Directors Independent Non-Executive Directors AUDITOR AUDITOR Li Dong Sheng Li Dong Sheng Ian Charles Stone PricewaterhouseCoopers Yang Siu Shun Certified Public Accountants Ke Yang and Registered Public Interest Zhang Xiulan Entity Auditor 29/F., Three Pacific Place No. 1 Queen’s Road East Wanchai Hong Kong CAYMAN ISLANDS PRINCIPAL CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE Suntera (Cayman) Limited Suntera (Cayman) Limited Suite 3204, Unit 2A Suite 3204, Unit 2A Block 3, Building D Block 3, Building D P.O. Box 1586 P.O. Box 1586 Gardenia Court Camana Bay Grand Cayman, KY1-1100 Cayman Islands AUDIT COMMITTEE PRINCIPAL BANKERS HONG KONG BRANCH SHARE

D TRANSFER OFFICE Suntera (Cayman) Limited Suntera (Cayman) Limited Suite 3204, Unit 2A Suite 3204, Unit 2A Block 3, Building D Block 3, Building D P.O. Box 1586 P.O. Box 1586 Gardenia Court Camana Bay Grand Cayman, KY1-1100 Cayman Islands AUDIT COMMITTEE PRINCIPAL BANKERS HONG KONG BRANCH SHARE Yang Siu Shun (Chairman) Bank of China Limited REGISTRAR AND TRANSFER Ian Charles Stone The Hongkong and Shanghai Banking OFFICE Ian Charles Stone Charles St Leger Searle Corporation Limited Charles St Leger Searle Corporation Limited Computershare Hong Kong Investor Computershare Hong Kong Investor CORPORATE GOVERNANCE REGISTERED OFFICE Services Limited Services Limited CORPORATE GOVERNANCE REGISTERED OFFICE Shops 1712-1716, 17th Floor COMMITTEE Shops 1712-1716, 17th Floor COMMITTEE Cricket Square Hopewell Centre Charles St Leger Searle (Chairman) Hutchins Drive, P.O. Box 2681 183 Queen’s Road East Ian Charles Stone Grand Cayman KY1-1111 Wan Chai, Hong Kong Yang Siu Shun Cayman Islands Wan Chai, Hong Kong Ke Yang Cayman Islands COMPANY WEBSITE Zhang Xiulan TENCENT GROUP HEAD OFFICE COMPANY WEBSITE www.tencent.com Zhang Xiulan TENCENT GROUP HEAD OFFICE INVESTMENT COMMITTEE Tencent Binhai Towers www.tencent.com No. 33 Haitian 2nd Road STOCK CODES Tencent Binhai Towers Lau Chi Ping Martin (Chairman) Nanshan District Ma Huateng No. 33 Haitian 2nd Road HKD counter 700 Lau Chi Ping Martin (Chairman) Shenzhen, 518054 RMB counter 80700 Charles St Leger Searle Nanshan District 700 Ma Huateng The PRC HKD counter Shenzhen, 518054 RMB counter 80700 Charles St Leger Searle The PRC

ing Martin (Chairman) Nanshan District Ma Huateng No. 33 Haitian 2nd Road HKD counter 700 Lau Chi Ping Martin (Chairman) Shenzhen, 518054 RMB counter 80700 Charles St Leger Searle Nanshan District 700 Ma Huateng The PRC HKD counter Shenzhen, 518054 RMB counter 80700 Charles St Leger Searle The PRC 2 Tencent Holdings Limited

> **[Chart page]** This page contains visual data — view in PDF for the best experience. Financial Performance Highlights Financial Performance Highlights SECOND QUARTER OF 2023 SECOND QUARTER OF 2023 Unaudited Three months ended Unaudited Quarter- 30 June 30 June Three months ended 31 March Year- Quarter- 30 June 30 June on-year 31 March on-quarter 2023 2022 change 2023 change (RMB in millions, unless specified) Revenues 149,208 134,034 11% 149,986 -1% Revenues 149,208 134,034 11% 149,986 -1% Gross profit 70,840 57,867 22% 68,182 4% Gross profit 70,840 57,867 22% 68,182 4% Operating profit 40,300 30,067 34% 40,429 -0.3% Operating profit 40,300 30,067 34% 40,429 -0.3% Profit for the period 27,023 19,230 41% 2% Profit for the period 19,230 41% 26,394 2% Profit attributable to equity holders of the Company 26,171 18,619 41% 25,838 1% EPS (RMB per share) – basic 2.761 1.951 42% 2.725 1% – diluted 2.695 1.915 41% 2.639 2% Non-IFRS operating profit 50,122 36,667 37% 48,389 4% Non-IFRS profit attributable to equity holders of the Company 37,548 28,139 33% 32,538 15% equity holders of the Company 37,548 28,139 32,538 Non-IFRS EPS (RMB per share) – basic 3.962 2.949 34% 3.431 15% – diluted 3.875 2.896 34% 3.353 16% - diluted 3.875 2.896 34% 3.353 16% Interim Report 2023 3

> **[Chart page]** This page contains visual data — view in PDF for the best experience. Financial Performance Highlights Financial Performance Highlights FIRST HALF OF 2023 FIRST HALF OF 2023 Unaudited Six months ended Unaudited Year- Six months ended 30 June 30 June Year- 30 June 30 June on-year 2023 2022 change (RMB in millions, unless specified) Revenues 299,194 269,505 11% Revenues 299,194 269,505 11% Gross profit 139,022 114,941 21% Gross profit 139,022 114,941 21% Operating profit 80,729 Operating profit 67,284 20% Profit for the period 53,417 42,963 24% Profit attributable to equity holders of the Company 52,009 42,032 24% EPS (RMB per share) – basic 5.486 4.407 24% – diluted 5.334 4.320 23% Non-IFRS operating profit 98,511 73,205 35% Non-IFRS operating profit Non-IFRS profit attributable to equity holders of the Company 70,086 53,684 31% Non-IFRS profit attributable to equity holders of the Company 70,086 53,684 31% Non-IFRS EPS (RMB per share) – basic 7.393 5.628 31% – diluted 7.236 5.516 31% - diluted 7.236 5.516 31% 4 Tencent Holdings Limited

Pages: 122
Words: 47,038
Type: Financial

Topics

View this document on Game Industry Library.

Financial Results: Fiscal Year Ending March 2019

2024 Interim Report

2023 Annual Report: Tencent Holdings

2021 Interim Report

2023 Interim Report: Tencent

2023 Interim Report: Tencent

Summary

From the report

Topics

Related Documents