Financial

Annual Report 2024: Tencent Holdings Limited

Published by Tencent

Summary

Tencent Holdings Limited’s 2024 annual report details a period of robust financial expansion and strategic operational refinement. The company achieved annual revenues of RMB 660.26 billion, representing an 8% increase over the previous year, while profit attributable to equity holders surged by 68% to RMB 194.07 billion. This performance was underpinned by double-digit growth in marketing services and the sustained success of an "evergreen" games portfolio, which expanded to 14 titles. The company’s financial health was further bolstered by improved operational efficiencies, particularly through AI-driven advertising enhancements and cost-optimization initiatives, which collectively expanded gross margins to 53%. The report highlights a significant commitment to shareholder returns, evidenced by a 32% increase in the proposed annual dividend to HKD 4.50 per share and the repurchase of approximately HKD 112 billion in company shares. While the company maintains a strong net cash position of RMB 76.8 billion, it is aggressively scaling capital expenditures in AI infrastructure and research and development to drive future productivity and innovation. These investments are managed within a "Three Lines Model" of risk management, which prioritizes navigating market competition, regulatory compliance, and technological volatility. Geographically, the Mainland of China remains the primary market, accounting for roughly 90% of total revenue. To operate within this regulatory environment, the company continues to utilize structured contracts to manage value-added telecommunications and online services, acknowledging the inherent risks associated with potential shifts in Chinese law. Governance remains centered on a board structure that emphasizes diversity and merit-based selection, supported by rigorous internal controls and audit processes. Overall, the 2024 results reflect a transition toward high-margin, technology-led growth, supported by a disciplined approach to capital management and a strategic focus on long-term digital infrastructure.

From the report

Tencent i Tencent Holdings Limited Incorporated in the Cayman Islands with limited liability A #I HKD Counter Stock Code: 700 RMB Counter Stock Code: 80700 smart communication inspires 2024 Annual Report

CONTENTS 2 CONTENTS CORPORATE INFORMATION 2 CORPORATE INFORMATION 3 FINANCIAL SUMMARY 4 CHAIRMAN'S STATEMENT 4 CHAIRMAN’S STATEMENT 7 MANAGEMENT DISCUSSION AND ANALYSIS 7 MANAGEMENT DISCUSSION AND ANALYSIS 26 DIRECTORS' REPORT 26 DIRECTORS’ REPORT 80 CORPORATE GOVERNANCE REPORT 80 CORPORATE GOVERNANCE REPORT 114 INDEPENDENT AUDITOR'S REPORT 114 INDEPENDENT AUDITOR’S REPORT 123 CONSOLIDATED INCOME STATEMENT 124 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 125 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 128 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 132 CONSOLIDATED STATEMENT OF CASH FLOWS 134 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 265 DEFINITION 265 DEFINITION

Corporate Information DIRECTORS NOMINATION COMMITTEE PRINCIPAL PLACE OF BUSINESS DIRECTORS NOMINATION COMMITTEE IN HONG KONG PRINCIPAL PLACE OF BUSINESS Executive Director Ma Huateng (Chairman) IN HONG KONG Ma Huateng (Chairman) Li Dong Sheng Non-Executive Directors Ian Charles Stone Non-Executive Directors Yang Siu Shun Jacobus Petrus (Koos) Bekker Charles St Leger Searle Jacobus Petrus (Koos) Bekker REMUNERATION COMMITTEE Charles St Leger Searle REMUNERATION COMMITTEE Independent Non-Executive Directors lan Charles Stone (Chairman) Independent Non-Executive Directors Ian Charles Stone (Chairman) Li Dong Sheng Li Dong Sheng Li Dong Sheng Jacobus Petrus (Koos) Bekker lan Charles Stone Jacobus Petrus (Koos) Bekker Ian Charles Stone Yang Siu Shun AUDITOR Ke Yang Zhang Xiulan PricewaterhouseCoopers 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 Block 3, Building D P.O. Box 1586 Gardenia Court AUDIT COMMITTEE Certified Public Accountants Camana Bay and Registered Public Interest Grand Cayman, KY1-1100

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

i Towers www.tencent.com Charles St Leger Searle No. 33 Haitian 2nd Road STOCK CODES Tencent Binhai Towers Nanshan District Charles St Leger Searle No. 33 Haitian 2nd Road HKD counter 700 Shenzhen, 518054 RMB counter 80700 Nanshan District 700 The PRC HKD counter Shenzhen, 518054 RMB counter 80700 2 Tencent The PRC Holdings Limited

> **[Chart page]** This page contains visual data — view in PDF for the best experience. Financial Summary CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2020 2021 2022 2023 2024 RMB'Million Year ended 31 December RMB'Million RMB'Million RMB'Million RMB'Million Revenues ’ 2020 ’ 2021 ’ 2022 ’ 2023 RMB’ 2024 RMB Million RMB Million RMB Million RMB Million Million Revenues 482,064 560,118 554,552 609,015 660,257 Gross profit 221,532 245,944 238,746 293,109 349,246 126,197 124,656 110,827 160,074 208,099 Operating profit 126,197 124,656 110,827 160,074 208,099 Profit before income tax 180,022 248,062 210,225 161,324 241,485 Profit before income tax 180,022 248,062 210,225 161,324 241,485 Profit for the year 160,125 227,810 188,709 118,048 196,467 Profit for the year 160,125 227,810 188,709 118,048 196,467 Profit attributable to equity holders of the Company 159,847 224,822 188,243 115,216 194,073 Profit attributable to equity holders of the Company 159,847 224,822 188,243 115,216 194,073 Total comprehensive income for the year 281,173 200,390 59,564 107,182 284,342 Total comprehensive income for the year 281,173 200,390 59,564 107,182 284,342 Total comprehensive income attributable to equity holders of the Company 277,834 200,323 60,699 102,130 279,009 Non-IFRS operating profit 143,241 152,729 143,203 191,886 237,811 Non-IFRS profit attributable to equity holders of the Company 122,742 123,788 115,649 157,688 222,703

Pages: 274
Words: 110,701
Type: Financial

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