腾讯控股(00700) - 2025 - 中期业绩

Financial Performance Summary Key Financial Metrics The Group achieved robust growth in Q2 and H1 2025, with Q2 revenue increasing by 15% year-over-year to RMB 184.5 billion and Non-IFRS profit attributable to equity holders growing by 10% to RMB 63.1 billion, while H1 revenue increased by 14% year-over-year with Non-IFRS profit attributable to equity holders growing by 16% 2025 Q2 Financial Summary (YoY and QoQ) | Metric | 2025 Q2 (RMB million) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Revenue | 184,504 | 15% | 2% | | Gross Profit | 105,013 | 22% | 4% | | Operating Profit | 60,104 | 18% | 4% | | Profit Attributable to Equity Holders | 55,628 | 17% | 16% | | Non-IFRS Profit Attributable to Equity Holders | 63,052 | 10% | 3% | | Non-IFRS Diluted EPS (RMB) | 6.793 | 13% | 3% | 2025 H1 Financial Summary (YoY) | Metric | 2025 H1 (RMB million) | YoY Change | | :--- | :--- | :--- | | Revenue | 364,526 | 14% | | Gross Profit | 205,506 | 21% | | Operating Profit | 117,670 | 14% | | Profit Attributable to Equity Holders | 103,449 | 16% | | Non-IFRS Profit Attributable to Equity Holders | 124,381 | 16% | Key Operating Metrics As of June 30, 2025, the combined monthly active users (MAU) of Weixin and WeChat continued to grow, increasing by 3% year-over-year to 1.411 billion, while QQ mobile terminal MAU decreased by 7% year-over-year, and fee-based value-added services subscribers remained stable Key Platform Operating Data as of End of 2025 Q2 | Metric | June 30, 2025 (million) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Weixin and WeChat Combined MAU | 1,411 | 3% | 0.6% | | QQ Mobile Terminal MAU | 532 | -7% | -0.4% | | Fee-based VAS Subscribers | 264 | 0.4% | -1% | Business Review and Outlook Overall Business Review In Q2 2025, the company continued to increase investment in AI, achieving significant results with AI technology empowering various business segments like games, advertising, and enterprise services, driving revenue and profit growth, while FinTech services also recovered due to improved consumption trends - The company continues to invest in and benefit from AI, with AI technology widely applied in evergreen games (e.g., Honor of Kings), new games (e.g., Delta Force), and advertising platforms, driving growth in game business and marketing services revenue[7] - Local game Delta Force performed outstandingly, with daily active users exceeding 20 million in July; internationally, Clash Royale achieved a seven-year high in monthly revenue[9] - Mini-game ecosystem continues to thrive, with total gross receipts growing by 20% year-over-year, benefiting from technology platform upgrades[9] - Hunyuan 3D model ranked first on Hugging Face, demonstrating the company's leading capabilities in foundational model research and development, and has begun to be adopted by game developers and designers[9] Management Discussion and Analysis Quarterly Financial Analysis This quarter's financial performance was strong, with both year-over-year and quarter-over-quarter growth driven by games and advertising, leading to a significant increase in gross margin, while quarter-over-quarter growth benefited from seasonal recovery in advertising, partially offsetting the post-Chinese New Year seasonal decline in games Year-over-Year Analysis (2025 Q2 vs 2024 Q2) Q2 2025 revenue increased by 15% year-over-year to RMB 184.5 billion, primarily driven by Value Added Services and Marketing Services, with gross profit increasing by 22% and gross margin improving from 53% to 57% due to contributions from high-margin businesses (e.g., domestic games, Video Accounts) and improved cost efficiency, while Non-IFRS net profit attributable to equity holders grew by 10% Revenue Year-over-Year Change by Business Segment (2025 Q2) | Business Segment | Revenue (RMB million) | YoY Change | Key Drivers | | :--- | :--- | :--- | :--- | | Value Added Services | 91,368 | 16% | Domestic and international game growth, social network growth | | Marketing Services | 35,762 | 20% | AI-driven advertising platform improvements, strong demand for Video Accounts and Mini Programs | | FinTech and Business Services | 55,536 | 10% | Growth in consumer loans, commercial payments, and AI-related enterprise services | Gross Profit and Gross Margin Year-over-Year Change by Business Segment (2025 Q2) | Business Segment | Gross Profit (RMB million) | YoY Change | Gross Margin (2025 Q2) | Gross Margin (2024 Q2) | | :--- | :--- | :--- | :--- | :--- | | Value Added Services | 55,223 | 23% | 60% | 57% | | Marketing Services | 20,585 | 24% | 58% | 56% | | FinTech and Business Services | 28,952 | 21% | 52% | 48% | | Group Overall | 105,013 | 22% | 57% | 53% | - General and administrative expenses increased by 16% year-over-year, primarily due to increased R&D expenses and employee costs supporting AI-related business development[17] Quarter-over-Quarter Analysis (2025 Q2 vs 2025 Q1) Q2 2025 revenue increased by 2% quarter-over-quarter to RMB 184.5 billion, with Marketing Services revenue growing by 12% quarter-over-quarter driven by post-Chinese New Year peak season and AI capability deployment, offsetting a 6% seasonal decline in domestic games, while gross profit increased by 4% quarter-over-quarter and gross margin slightly rose from 56% to 57% - Value Added Services revenue slightly decreased by 0.8% quarter-over-quarter, mainly due to the seasonal decline in domestic games after the Chinese New Year, partially offset by strong 13% growth in international games[23] - Marketing Services revenue increased by 12% quarter-over-quarter, benefiting from AI advertising capability deployment and the post-Chinese New Year peak season[23] - FinTech and Business Services revenue increased by 1% quarter-over-quarter, with growth in cloud services and merchant technical service fees offset by a decrease in FinTech services revenue[23] - Sales and marketing expenses increased by 20% quarter-over-quarter, primarily due to increased game-related promotional activities[25] Other Financial Metrics and Cash Position As of the end of Q2 2025, the Group's adjusted EBITDA margin increased to 46%, indicating enhanced profitability, while net cash at period-end was RMB 74.6 billion, a decrease from the previous quarter primarily due to annual dividend payments, with Q2 free cash flow at RMB 43.0 billion and significantly increased capital expenditure mainly supporting AI-related business development Other Financial Metrics (2025 Q2) | Metric | Amount (RMB million) | Notes | | :--- | :--- | :--- | | Adjusted EBITDA | 85,122 | 24% YoY increase | | Adjusted EBITDA Margin | 46% | 43% in prior year period | | Capital Expenditure | 19,107 | 119% YoY increase | | Net Cash (Period-end) | 74,592 | 17% QoQ decrease | - As of June 30, 2025, net cash was RMB 74.6 billion, a decrease from RMB 90.2 billion at the end of the previous quarter, primarily due to the payment of the 2024 fiscal year-end dividend of RMB 37.5 billion[34] - Free cash flow generated in Q2 2025 was RMB 43.0 billion, with net cash generated from operating activities of RMB 74.4 billion, partially offset by capital expenditure payments of RMB 22.9 billion (primarily for AI business)[35] Non-IFRS Financial Measures The company provides Non-IFRS financial measures to exclude the impact of certain non-cash items (e.g., share-based compensation, amortization of intangible assets) and investment-related transactions, aiming to help investors assess core business performance, with Non-IFRS net profit attributable to equity holders at RMB 63.1 billion in Q2 2025 - Management believes that Non-IFRS financial measures provide useful supplementary information for investors to assess the Group's core business performance by excluding the impact of certain non-cash items and investment-related transactions[28] IFRS to Non-IFRS Profit Reconciliation (2025 Q2) | Item (RMB million) | Amount | | :--- | :--- | | Profit Attributable to Equity Holders (IFRS) | 55,628 | | Add: Share-based compensation | 8,071 | | Less: Net (gain)/loss from investee companies | (3,192) | | Add: Amortization of intangible assets | 2,848 | | Other adjustments and income tax effects | (303) | | Non-IFRS Profit Attributable to Equity Holders | 63,052 | Financial Information Condensed Consolidated Statements This section provides the unaudited condensed consolidated income statements, statements of comprehensive income, statements of financial position, and statements of cash flows for the three and six months ended June 30, 2025, comprehensively presenting the Group's financial position and operating results Summary of Condensed Consolidated Income Statement (Six Months Ended June 30, 2025) | Metric (RMB million) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 364,526 | 320,618 | | Gross Profit | 205,506 | 169,765 | | Operating Profit | 117,670 | 103,288 | | Profit for the Period | 105,769 | 91,017 | Summary of Condensed Consolidated Statement of Financial Position | Metric (RMB million) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 2,013,310 | 1,780,995 | | Total Liabilities | 810,461 | 727,099 | | Total Equity | 1,202,849 | 1,053,896 | Summary of Condensed Consolidated Cash Flow Statement (Six Months Ended June 30) | Metric (RMB million) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 151,265 | 126,458 | | Net Cash Flows Used in Investing Activities | (72,407) | (45,449) | | Net Cash Flows Used in Financing Activities | (30,111) | (99,781) | Notes to Financial Information The notes provide detailed explanations of the basis of preparation, accounting policies, and specific composition of each financial statement item, with key areas including segment information, investment details, share-based payments, borrowings and bills payable, and business combinations Segment Information The Group's operations are divided into three segments: Value Added Services, Marketing Services, and FinTech and Business Services. In Q2 2025, Value Added Services contributed 50% of revenue and 53% of gross profit, FinTech and Business Services contributed 30% of revenue and 28% of gross profit, while Marketing Services contributed 19% of revenue and 20% of gross profit Segment Revenue and Gross Profit (2025 Q2) | Business Segment | Revenue (RMB million) | Gross Profit (RMB million) | | :--- | :--- | :--- | | Value Added Services | 91,368 | 55,223 | | Marketing Services | 35,762 | 20,585 | | FinTech and Business Services | 55,536 | 28,952 | | Others | 1,838 | 253 | | Total | 184,504 | 105,013 | Investments As of June 30, 2025, the carrying value of the Group's investments in associates was RMB 307.6 billion, with the fair value of listed associates approximately RMB 340.2 billion, and total financial assets measured at fair value exceeding RMB 630 billion, representing a significant component of the Group's assets - As of June 30, 2025, the fair value of investments in associates (listed portion) was approximately RMB 340.187 billion[73] - Total financial assets measured at fair value (FVTPL + FVTOCI) amounted to RMB 633.858 billion[76][77] Share-based Payments As of June 30, 2025, the company had approximately 91.4 million unexercised share options under the 2023 Share Option Scheme and approximately 123 million unvested award shares under the 2023 Share Award Scheme, which are important tools for employee incentives - As of June 30, 2025, there were 91,400,760 unexercised share options under the 2023 Share Option Scheme[80] - As of June 30, 2025, there were 122,768,570 unvested award shares under the Share Award Scheme[83] Borrowings and Bills Payable As of June 30, 2025, the Group's total borrowings were RMB 261.6 billion, and total bills payable were RMB 132.2 billion, denominated in various currencies, primarily USD and RMB, with most being unsecured - As of June 30, 2025, the Group's total borrowings amounted to RMB 261.6 billion[85] - As of June 30, 2025, the Group's total bills payable amounted to RMB 132.2 billion, all of which were unsecured USD-denominated bills[87][88] Other Information Share Repurchases For the six months ended June 30, 2025, the company repurchased a total of 81,867,000 shares on the Stock Exchange for a total consideration of approximately HKD 36.5 billion, aiming to enhance long-term shareholder value, with all repurchased shares having been cancelled Share Repurchase Details for H1 2025 | Month of Purchase | Number of Shares Purchased | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | January | 37,060,000 | 14,117,031,503.00 | | March | 5,924,000 | 3,003,627,164.10 | | April | 8,430,000 | 3,905,420,932.80 | | May | 9,784,000 | 5,004,217,423.60 | | June | 20,669,000 | 10,509,720,949.40 | | Total | 81,867,000 | 36,540,017,972.90 | Employees and Remuneration Policy As of June 30, 2025, the Group had 111,221 employees, an increase from the same period last year, with total remuneration costs for the first half of the year amounting to RMB 65.0 billion - As of June 30, 2025, the Group had 111,221 employees, representing a 5.4% year-over-year increase[95] - Total remuneration costs for the six months ended June 30, 2025, amounted to RMB 65.0 billion, a 19.7% year-over-year increase[95] Corporate Governance The Audit Committee has reviewed the interim financial information, and while the company deviates from the Corporate Governance Code's provision on directors' rotation, the Board believes this deviation has no material impact on the company's overall operations - The Audit Committee has reviewed the Group's unaudited interim financial information[96] - The company deviates from Rule B.2.2 of the Corporate Governance Code (regarding directors retiring by rotation at least once every three years), concerning the re-election of Mr. Ian Charles Stone[97]