2023-08-16 08:38Financial Performance - For the six months ended June 30, 2023, the company reported a net profit of RMB 28,987 million, compared to RMB 19,230 million for the same period in 2022, representing a year-on-year increase of approximately 50.5%[7]. - Total revenue for the six months ended June 30, 2023, was RMB 73,205 million, an increase from RMB 67,284 million in the same period of the previous year, reflecting a growth of approximately 8.6%[10]. - The gross profit for the six months ended June 30, 2023, was RMB 139,022 million, compared to RMB 114,941 million for the same period in 2022, reflecting a growth of about 21%[53]. - The company reported a diluted earnings per share of RMB 4.32 for the six months ended June 30, 2023, compared to RMB 5.52 for the same period in 2022, reflecting a decrease in profitability per share[9]. - The company’s profit attributable to equity holders for the three months ended June 30, 2023, was RMB 26,171 million, an increase of 40.6% from RMB 18,619 million in the same period of 2022[65]. - The basic earnings per share for the six months ended June 30, 2023, was RMB 5.486, up 24.5% from RMB 4.407 in the same period of 2022[65]. - Net profit attributable to equity holders increased by 41% year-on-year to RMB 26.2 billion in Q2 2023[140]. - The company recorded a net profit of RMB 27.023 billion for Q2 2023, compared to RMB 26.394 billion in Q1 2023[134]. Cash and Cash Equivalents - The company's cash and cash equivalents as of June 30, 2023, amounted to RMB 17.7 billion, down from RMB 31.5 billion as of March 31, 2023, primarily due to dividend payments and share buybacks[13]. - The group’s cash and cash equivalents as of June 30, 2023, were RMB 46,172 million, slightly up from RMB 45,467 million as of December 31, 2022[47]. - The company’s cash and cash equivalents decreased to RMB 246,101 million as of June 30, 2023, from RMB 310,209 million as of June 30, 2022[70]. Expenses and Costs - Employee benefit expenses for the six months ended June 30, 2023, were RMB 54.07 billion, a decrease from RMB 56.78 billion in the previous year, showing a reduction in labor costs[29]. - The total remuneration cost for the six months ended June 30, 2023, was RMB 54.069 billion, a decrease from RMB 56.779 billion for the same period in 2022[111]. - The revenue cost for Q2 2023 decreased by 4% quarter-on-quarter to RMB 78.4 billion, attributed to reduced content costs, fintech transaction costs, and bandwidth and server costs, partially offset by increased channel and distribution costs[126]. - Operating expenses decreased by 3% year-on-year to RMB 25.4 billion, mainly due to reduced employee costs[139]. - The cost of revenue for Q2 2023 was RMB 78.37 billion, representing 53% of total revenue, down from 57% in the same period last year[168]. Investments - The company incurred expenses related to SSV and CPP projects amounting to RMB 3.30 billion for the six months ended June 30, 2023, compared to RMB 2.14 billion for the same period in 2022, indicating an increase in investment in these areas[31]. - The group’s investment in associates increased due to additional investments in several new and existing associates primarily engaged in game development[42]. - The total equity investments in listed companies as of June 30, 2023, amounted to RMB 186,834 million, an increase from RMB 159,861 million as of December 31, 2022[74]. - Investments in listed companies as of June 30, 2023, amounted to RMB 12.957 billion, compared to RMB 12.443 billion as of December 31, 2022[98]. - Investments in unlisted companies increased to RMB 197.842 billion from RMB 187.502 billion year-on-year[98]. - The company made new and additional investments totaling approximately RMB 34.55 billion in financial investments and companies engaged in electronic payments and e-commerce[179]. Taxation - The corporate income tax rate applicable to the company in China is generally 25%, which has been factored into the tax provisions for the reporting periods[34]. - The group incurred a total tax expense of RMB 22,610 million for the six months ended June 30, 2023, compared to RMB 9,837 million for the same period in 2022, indicating a significant increase[64]. - Tax expenses rose by 144% year-on-year to RMB 11.1 billion due to increased pre-tax profits and tax provisions[139]. Shareholder Value - The company repurchased a total of 48,346,500 shares at a total cost of approximately HKD 16.9 billion during the six months ended June 30, 2023, aimed at enhancing long-term shareholder value[85]. - The fair value change of the payable dividend related to Meituan shares was approximately RMB 30 billion during the period from January 1, 2023, to the dividend distribution date[68]. Operational Efficiency - The adjusted EBITDA margin for the period was calculated based on adjusted EBITDA divided by revenue, indicating a focus on operational efficiency[4]. - The adjusted EBITDA for Q2 2023 was RMB 56.85 billion, with an adjusted EBITDA margin of 38%[190]. Market Performance - Revenue for Q2 2023 increased by 11% year-over-year to RMB 149.208 billion[167]. - The revenue from value-added services in Q2 2023 was RMB 74.21 billion, a 4% year-on-year increase, driven by contributions from games like "VALORANT" and "Triple Match 3D" with international game revenue growing 19% to RMB 12.7 billion[175]. - The revenue from online advertising in Q2 2023 increased by 34% to RMB 25 billion, supported by strong demand for video ads and optimization of the machine learning advertising platform[176]. - Financial technology and enterprise services revenue grew 15% year-on-year to RMB 48.64 billion, benefiting from increased offline and online commercial payment activities[176]. Other Notable Points - The company expressed gratitude to its employees and stakeholders for their continued support and confidence during challenging times[113]. - The number of registered accounts for value-added services increased by 2% year-on-year to 1.327 billion[147]. - The number of active accounts and user engagement metrics were not disclosed in the provided content but are critical for assessing future growth potential[92].