At Tencent, we see ourselves as a platform company

hi everybody I I I'm actually not VP of Business Development I'm I'm the guy who like cleans up the trash actually truly I am I've been running around fixing problems for tencent for the last six years but anyway I'm here to tell you about a little bit about tencent and about what we're looking for I think because many of you and and I think the previous speakers for sort of you know pushing us a little bit um might be interested in whether tencent would would want to invest in your projects or invest in your company so let me just sort of quickly go through um some of the overall statistics of the Chinese market I'm not going to like read these slides or anything so I encourage you to take a look and I mean the basic the basic news is that things are going incredibly fast um you know a few years ago attention we were worried that the PC market was sort

of was going to plateau and um and we were going to be in trouble you know because we've been growing really fast and the Market's been rewarding us for growing really fast but the problem with that of course is if you slow down growing really fast the market will also punish you for doing that um you know the mobile Green Market is just I don't know it just went boom right I mean it's kind of ridiculous slide um and so it's become a really really big Focus for us because we've had this great success in other segments of the Chinese internet services market and not just in games but in particular in PC online games and now with mobile expanding as fast as it is we really need to maintain our position as a leader in the market so one of the other things that has definitely emerged is that Android is really really important there was a feeling even inside tencent a few years ago that all the people who had money

had iPhones and that you know Android was you know maybe there's a lot of those but nobody pays any money so that's not true and Android is expanding faster and faster and this uh this information about the the Chinese equipment manufacturers that are going to build these 700 smartphones I think is really something we all need to pay attention to because that Hardware is not only going to be available in China it's going to be all over the world and it's going to have one good effect which is many many many many many many new users it's going to have one really bad effect which is lots of really weird kind of crappy Hardware with weird versions of Android on it that doesn't really work the way that you want which actually is a lot like the PC games Market where there's all sorts of PCS all over the world that have all sorts of weird graphics cards and sound cards and non-standard this and that and you just kind of have to deal with it and so I suggest to all of you that you

figure out how you're going to deal with it because this is this is the future um so you know actually why phone doesn't work here either it's really frustrating by the way um but uh yeah so so you know the network is always going to be a problem um but you know again it's just one of those things that we all have to deal with in terms of of China you know one of the difficulties for you guys trying to come in from the outside is it's a really complicated messed up Market with all sorts of people doing all sorts of stuff made even more complicated by government regulations and licensing requirements and and all sorts of crap so um you know having you know here's another example um and so uh here's a slide that I didn't even delete the notes from but why attention could help you guys is that we do all of this stuff

um you know we we don't just run games we also provide all sorts of other services on the internet we have very big social networking everything from qqim which was our original product through newer products like WeChat you know we like to think of it that we're sort of providing things for the user 24 hours a day and they go through the cycle where they're doing certain things in the morning and then they're at work or they're in school and then they are you know having dinner and then they're after dinner and you know here are all the different things that we provide that allow them to basically spend their entire life online within the confines of the tencent platform um which maybe is a bad idea but um hopefully it's a good idea for all of us and hopefully we can share some of that with you guys um this is again this just so you sort of understand who we are the structure of tencent um where we have our studio system we have the social and mobile game studios

those are our internal Studios and we have publishing um now one important thing to understand about our publishing group uh which I think it speaks to how do we deal with many many different products is that if you look inside of publishing publishing is very siled so there are teams that are assigned to different products and those teams their kpi or their you know their their success is measured based on the service they provide to their products and the success of those products in the market and we don't really allow those teams to sort of cross um I don't know cross collaborate in some way because one of the questions I get a lot is how do I know that tencent will give my product a fair Shake because hey maybe we've got an internal game that's not that not that dissimilar because honestly there's a lot of games that are very similar or how do I know that you know this other competitor of mine who's also operating on your network isn't getting a better deal than I am or isn't

getting you know more focused and one of the reasons we run publishing is a highly siled environment is that tencent we see ourselves as a platform company as the platform is not relatively agnostic to the products and to our partners then why would you work with us right and that's not to say that some really big company might not be able to push us to have a better deal in some ways than a smaller company what I'm telling you is that from an operational standpoint of you everybody gets what they need and we're very very careful to be fair to all of our different operating partners um again these are all the things sort of the connect together QQ a lot of um Kuku was built off of off of the success of the qqim platform QQ mobile obviously is a huge platform and WeChat is growing WeChat is about

half the size of QQ mobile but it's you know it's growing really fast it's sort of the sexy platform um but uh you know we can definitely bring the users to to any products that you might want to work with us on here's a quick look at our top products above the line is the PC Product which have been successful for a long time now uh I mean these these numbers are sort of crazy um you know for our mobile games again WeChat is doing really well we've got you know when we launched the first set of WeChat games we got you know tens of millions of downloads just in you know a number of days and while we haven't actually hit the 2 billion number yet but uh hopefully we'll get there at least in aggregate pretty soon here's a look at where tencent is currently operating in terms of where we have Studios or we have other offices as

you can see we're heavily concentrated in Southeast Asia we're all starting to Branch out into other parts of the world this is a look at where WeChat has been doing well so WeChat inside of China has done extremely well but we chat in Emerging Markets is also starting to do well I don't know if you've noticed but the WeChat Game Center just launched outside of China a few weeks ago so we have the WeChat Game Center inside of China that has about I think about 10 games on it now it's a very very highly curated environment whereas QQ mobile is sort of more like an app store and we're now pushing that out into the rest of the world so I want to talk a little bit about what tencent I've got two minutes left attention is looking for and the truth is we're looking for everything right we're in a in a fortunate space in which we are able to make very large

Investments at the high end in very in successful existing companies that have proven businesses but we also understand that in order to have a healthy ecosystem and in order to participate in the whole ecosystem we need to be willing to make those tiny little investments in small startups so we do have a seed investment program we're investing in companies that are you know on their way to going um into the market we're investing in companies that have just released and they're starting to have success and you know we have made some very large investment in existing successful successful companies but the most important thing is that we have a really really strong belief that when we invest in somebody we're investing in them to be themselves like we're not interested in making you be like tencent in fact we have actually almost an anti-interest is making it be like 10 cents what we want you to do is be like yourself and what we can provide for you is lots of data lots of operating experience you know lots of support you know not just in

terms of financial support but particularly inside of China in terms of marketing support and Operational Support but what we don't want to do is change your company and I really want to get that message out because in some of our you know previous Investments there have been like these these internet haters have been out in Forest saying oh tencent has bought so-and-so and they're now going to destroy them and turn them into some you know cheesy Chinese knockoff company so first of all we're not cheesy Chinese company but but um even if we were we would not be interested in making you guys into cheesy Chinese knockoff companies and there's lots of great companies in China and China doing original work there's lots of great companies all over the world doing original work and we want to help you to continue to do that work because why would we change something that is working well so if you're you know wondering what it is that we want to do that's what we want to do we want to find really great creative companies and participate and

help them to become more successful um so really we don't just invest in Mobile companies we've made some big investments in the PC business as well um we're interested in all genres we're looking at things in all stages of development any Target markets though honestly the one we care about the most is China because that's where we make most of our money the one thing is free to play we're not going to somehow become a box Product Company or invest in games that you pay for up front it's just not it's not what we do um and uh you know like I said we're looking for great companies all over the world we're doing great things and we hope you can become our partner and you hope you will come to us and we're coming looking for you and thank you