TENCENT(00700)2024-04-08 11:35Financial Performance - The company's audited profit attributable to equity holders for the year ended December 31, 2023, was RMB 115.216 billion, a decrease of 39% compared to the previous year[8]. - The basic and diluted earnings per share for the year were RMB 12.186 and RMB 11.887, respectively[8]. - The non-IFRS profit attributable to equity holders for the year was RMB 157.688 billion, an increase of 36% year-on-year[8]. - The total revenue for the year was RMB 609.015 billion, showing a growth from RMB 554.552 billion in the previous year[6]. - Total revenue for the year ended December 31, 2023, increased by 10% to RMB 609.015 billion compared to RMB 554.552 billion in 2022[25]. - Operating profit for the year ended December 31, 2023, was RMB 160.074 billion, up from RMB 110.827 billion in 2022[23]. - Net profit attributable to equity holders decreased by 39% year-on-year to RMB 115.2 billion, mainly due to a one-time gain recognized in Q4 2022[35]. - Adjusted EBITDA for the year reached RMB 235.5 billion, with an adjusted EBITDA margin of 39%[58]. - Operating profit for the year ended December 31, 2023, was RMB 191,886 million, with an operating profit margin of 26%[71]. - Net profit attributable to equity holders for the same period was RMB 157,688 million, representing a net profit margin of 19%[71]. User Engagement and Growth - Monthly active accounts for WeChat and Weixin reached 1.343 billion, a 2% increase year-on-year[10]. - The total user engagement time for the video account doubled, driven by improvements in recommendation algorithms[11]. - The number of video paying subscribers reached 117 million, while music paying subscribers reached 107 million[1]. - The average daily active accounts for mobile games exceeded 5 million, with 8 key popular games identified in the domestic market[1]. Revenue Segments - Revenue from online advertising grew by 23% to RMB 101.482 billion, driven by new advertising inventory and platform upgrades[26]. - Revenue for the financial technology and enterprise services segment increased by 15% year-on-year to RMB 203.8 billion, driven by increased payment activities and growth in wealth management services[28]. - The gross profit for the financial technology and enterprise services segment increased by 38% year-on-year to RMB 80.6 billion, with gross margin rising from 33% to 40%[32]. - The revenue from value-added services for the year ended December 31, 2023, increased by 4% to RMB 298.375 billion[26]. Dividends and Shareholder Returns - The company plans to distribute a dividend of HKD 3.40 per share for the year ended December 31, 2023, representing a 42% increase[15]. - The company proposed a final dividend of HKD 3.40 per share for the year ended December 31, 2023, up from HKD 2.40 in 2022, pending shareholder approval[17]. - The board proposed a final dividend of HKD 3.40 per share for the year ending December 31, 2023, totaling approximately HKD 3.40 per share[90]. Stock Buyback and Investment Strategy - The share buyback program is set to double from approximately HKD 49 billion in 2023 to over HKD 100 billion in 2024[15]. - The company plans to continue monitoring investment performance and seek opportunities for strategic investments and divestments when market conditions are favorable[79]. Charity and Social Responsibility - Tencent's digital charity platform has become one of the largest globally, with public donations reaching RMB 3.8 billion during the 99 Charity Day event[11]. - The digital public welfare platform achieved RMB 3.8 billion in public donations during the 99 Public Welfare Day, a 15% year-on-year increase[21]. - The company made donations totaling RMB 2.952 billion during the year[100]. Stock Options and Incentive Plans - The company has adopted six stock option plans, with the latest plan initiated in 2023[105]. - The total number of stock options granted in 2023 was 119,423,776, with 17,221,857 options exercised and 13,148,354 options expired or forfeited[126]. - The company continues to utilize stock options as a key component of its employee compensation strategy, aligning employee interests with shareholder value[126]. - The stock option program is designed to incentivize performance and retention among key employees, contributing to the company's overall growth strategy[126]. Management and Governance - The company confirmed the independence of all independent non-executive directors as of the report date[196]. - The company’s chairman and CEO, Ma Huateng, has over 30 years of experience in the telecommunications and internet industry[199]. - The company’s board of directors includes both executive and non-executive members, with upcoming rotations scheduled for 2024[195].