2020-04-02 09:51Financial Performance - The company's audited profit attributable to equity holders for the year ended December 31, 2019, was RMB 93.31 billion, an increase of 19% compared to the previous year[10]. - Tencent's revenue for the year ended December 31, 2019, increased by 21% year-on-year to RMB 377.29 billion[39]. - The company's operating profit for the same period was RMB 118.69 billion, compared to RMB 97.65 billion in 2018, reflecting a growth of 21.5%[39]. - Tencent's net profit attributable to equity holders for 2019 was RMB 93.31 billion, up from RMB 78.72 billion in 2018, marking a growth of 18.6%[39]. - The profit attributable to equity holders for 2019 increased by 19% year-on-year to RMB 93.31 billion, with a 22% increase in non-IFRS profit to RMB 94.35 billion[47]. - In Q4 2019, total revenue grew by 25% year-on-year to RMB 105.77 billion, with value-added services accounting for 50% of total revenue[52]. - The group's operating profit for Q4 2019 was RMB 28.60 billion, compared to RMB 17.29 billion in Q4 2018[49]. - The group's profit attributable to equity holders for Q4 2019 increased by 52% year-on-year to RMB 21.582 billion, with non-IFRS profit attributable to equity holders growing by 29% to RMB 25.484 billion[62]. User Engagement and Growth - The number of monthly active accounts for WeChat and WeChat combined reached 1,164.8 million, a year-on-year increase of 6.1%[11]. - The registered accounts for paid value-added services increased to 180.1 million, reflecting a growth of 12.4% year-on-year[11]. - The number of active QQ smart terminal accounts decreased to 647.0 million, a decline of 7.5% year-on-year[11]. - Daily active users of the short video app Weishi increased by 80% quarter-on-quarter in Q4 2019, with daily video uploads rising by 70%[21]. - Daily active accounts for Tencent Meeting exceeded 10 million within two months of its launch, making it the most used video conferencing app in China[28]. Revenue Streams - The revenue from value-added services was RMB 199.99 billion, accounting for 53% of total revenue, while financial technology and enterprise services contributed RMB 101.36 billion, or 27%[41]. - The group's value-added services revenue for 2019 increased by 13% year-on-year to RMB 200 billion, driven by contributions from domestic smartphone games and overseas games[43]. - The fintech and enterprise services revenue grew by 39% year-on-year to RMB 101.4 billion, primarily due to increased daily active users and transaction volumes[43]. - The online advertising revenue rose by 18% year-on-year to RMB 68.38 billion, with social and other advertising revenue increasing by 33% to RMB 52.90 billion[43]. Investment and Capital Expenditures - The company's investment portfolio reached approximately RMB 439.55 billion as of December 31, 2019, up from RMB 369.19 billion a year earlier[87]. - The fair value of investments in listed companies (excluding subsidiaries) was RMB 419.82 billion as of December 31, 2019, compared to RMB 238.04 billion in the previous year[87]. - The company allocated approximately RMB 10.15 billion for expanding its online reading business and marketing activities[115]. - Approximately RMB 13.52 billion was invested in the development of derivative entertainment products based on online literature adaptations[115]. - RMB 18.43 billion was designated for potential investments, acquisitions, and strategic collaborations[115]. - Capital expenditures for Q4 2019 amounted to RMB 16.869 billion, up from RMB 6.632 billion in Q3 2019[73]. Corporate Governance and Leadership - The company is led by a strong executive team, including Ma Huateng as Chairman and CEO, and Liu Chiping as President, both with extensive industry experience[166][167]. - The company has a commitment to maintaining high standards of corporate governance, as evidenced by the annual confirmation of director independence[164]. - The board includes experienced non-executive directors such as Jacobus Petrus Bekker and Charles St Leger Searle, enhancing governance and strategic oversight[168][170]. - The company has purchased directors and officers liability insurance to provide adequate protection for its board members[193]. - The board has service contracts with key executives, including Ma Huateng and Liu Chih Ping, ensuring continuity in leadership until at least December 31, 2021[191]. Social Responsibility and Sustainability - Tencent's AI medical imaging technology was utilized to assist in the diagnosis of COVID-19, showcasing its commitment to technological advancement in healthcare[33]. - The company initiated a pandemic relief fund of RMB 1.5 billion to support various anti-epidemic efforts[33]. - Tencent's efforts in environmental sustainability included energy-saving measures at its data centers, which saved approximately 1,600 tons of standard coal annually[29]. - The company has a strong focus on technology for public good, particularly in promoting sustainable development[181]. Stock Options and Shareholder Value - The company repurchased 3,486,700 shares at a total cost of approximately HKD 1.16 billion during the fiscal year, aiming to enhance shareholder value[109]. - The company has adopted five share option plans, with various expiration dates ranging from 2021 to 2025[116]. - The total number of stock options granted in 2019 amounted to 70,560,444, with 22,743,035 options exercised and 1,612,741 options expired or forfeited[122]. - The company continues to implement stock option plans to incentivize employees and align their interests with shareholders[123].