TENCENT(00700)2025-04-08 09:02Financial Performance - The company's audited profit attributable to equity holders for the year ended December 31, 2024, was RMB 194.073 billion, an increase of 68% compared to the previous year[10]. - The basic and diluted earnings per share for the year ended December 31, 2024, were RMB 20.938 and RMB 20.486, respectively[10]. - Non-International Financial Reporting Standards profit attributable to equity holders for the year ended December 31, 2024, was RMB 222.703 billion, a 41% increase from the previous year[10]. - Revenue for the year ended December 31, 2024, increased by 8% to RMB 660.257 billion compared to RMB 609.015 billion in 2023[20]. - Operating profit for the year ended December 31, 2024, rose to RMB 208.099 billion, up from RMB 160.074 billion in 2023[20]. - The company's net profit attributable to equity holders increased by 68% to RMB 194.1 billion, with non-IFRS net profit growing by 41% to RMB 222.7 billion[26]. - For Q4 2024, revenue increased by 11% to RMB 172.4 billion, with value-added services revenue growing by 14% to RMB 79.0 billion, and marketing services revenue increasing by 17% to RMB 35.0 billion[28][30]. - Gross profit increased by 19% to RMB 349.2 billion, driven by strong growth in high-margin revenue sources such as domestic gaming, video accounts, and mini-game platforms, with gross margin rising from 48% to 53%[23]. User Engagement and Growth - The number of combined monthly active accounts for WeChat and WeChat reached 1,385 million, a 3% increase year-on-year[11]. - The number of mobile QQ monthly active accounts decreased by 5% year-on-year to 524 million[11]. - The number of paid members for Tencent Video reached 113 million, while Tencent Music's paid members increased to 121 million[15]. - The average number of paid members for the fourth quarter of 2024 was reported, indicating a focus on user engagement and retention[15]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[145]. - User retention rates improved to 85%, up from 80% last year, reflecting enhanced customer satisfaction[146]. Dividends and Share Repurchase - The company plans to increase the annual dividend by 32% to HKD 4.50 per share, amounting to approximately HKD 441 billion[14]. - The board proposed a final dividend of HKD 4.50 per share for the year ended December 31, 2024, up from HKD 3.40 per share in 2023, pending shareholder approval[16]. - The company has committed to repurchasing shares worth at least HKD 80 billion in the upcoming year[14]. - The company repurchased a total of 307,238,500 shares at a total cost of approximately HKD 112 billion during the fiscal year ending December 31, 2024[83]. Expenses and Cost Management - Sales and marketing expenses grew by 6% to RMB 36.4 billion, maintaining a stable percentage of revenue at 6%[25]. - General and administrative expenses increased by 9% to RMB 112.7 billion, primarily due to higher R&D costs and employee expenses, with the percentage of revenue remaining stable at 17%[25]. - For the fiscal year ending December 31, 2024, revenue cost decreased by 2% to RMB 311.1 billion, attributed to lower costs in live streaming revenue sharing, long video content, and cloud project deployment[23]. - The company aims to reduce operational costs by 5% through efficiency improvements in the next fiscal year[147]. Research and Development - The company has restructured its AI team to focus on rapid product innovation and deep model research and development[11]. - Research and development expenses increased by 10% to 100 million in sustainability initiatives over the next three years[145]. Investments and Financial Position - The total assets as of December 31, 2023, were RMB 1,577.246 billion[8]. - The total equity attributable to equity holders as of December 31, 2023, was RMB 808.591 billion[8]. - The investment portfolio as of December 31, 2024, was approximately RMB 817.69 billion, an increase from RMB 701.66 billion as of December 31, 2023[59]. - The company recorded a return from its investment portfolio of RMB 26.24 billion for the year, compared to a loss of RMB 2.69 billion in the previous year[62]. - The net cash position as of December 31, 2024, was RMB 76,798 million, an increase from RMB 54,740 million in the previous year, indicating improved liquidity[47]. Corporate Governance and Management - The company confirmed the independence of all independent non-executive directors[144]. - The board of directors includes both executive and non-executive members, with specific terms for re-election noted[143]. - The company has purchased directors and officers liability insurance to provide adequate protection for its directors[165]. - The company has no significant transactions or arrangements involving its directors or related entities during the fiscal year[164]. Strategic Initiatives and Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of 2024[149]. - A strategic acquisition of a tech startup was completed, valued at 500 million in revenue over the next fiscal year[148]. Legal and Regulatory Compliance - The company has no significant legal or regulatory compliance issues affecting its operations[195]. - The company has received tax incentives for foreign-owned enterprises, but there is no guarantee that these incentives will continue[185]. - The company has a risk related to its operational structure due to the framework agreements in place, which may not provide the same level of control as direct ownership[185].