TENCENT(HK:00700)2023-05-17 08:30Financial Performance - In Q1 2023, the company recorded a profit of RMB 1 billion from joint ventures, a significant improvement from a loss of RMB 6.3 billion in Q1 2022[1]. - Revenue for Q1 2023 increased by 3% quarter-on-quarter to RMB 150 billion[3]. - Profit attributable to equity holders decreased by 76% quarter-on-quarter to RMB 25.8 billion, while non-IFRS profit attributable to equity holders increased by 10% to RMB 32.5 billion[6]. - The company reported a basic earnings per share of RMB 2.725 for Q1 2023, compared to RMB 3.431 in Q1 2022[10]. - The total comprehensive income for the period was RMB 24,789 million, compared to RMB 23,612 million in the previous period, reflecting a growth of approximately 5%[27]. - The company reported a net profit attributable to equity holders of RMB 25,838 million during the period[27]. - The company recorded a net profit of RMB 26,394 million for the three months ended March 31, 2023, compared to RMB 23,733 million in the same period of 2022, marking an increase of 11.1%[62]. - For the three months ended March 31, 2023, the total revenue was RMB 149.986 billion, an increase from RMB 135.471 billion for the same period in 2022, representing a growth of approximately 10.7%[191]. - The gross profit for the three months ended March 31, 2023, was RMB 68,182 billion, compared to RMB 57,074 billion for the same period in 2022, indicating a year-over-year increase of about 19.5%[191]. Cost and Expenses - Cost of revenue decreased by 2% quarter-on-quarter to RMB 81.8 billion, resulting in a revenue cost percentage drop from 57% in Q4 2022 to 55% in Q1 2023[4]. - R&D expenses for Q1 2023 were approximately RMB 15.181 billion, slightly down from RMB 15.383 billion in Q1 2022[20]. - Media content amortization for Q1 2023 was approximately RMB 8.804 billion, up from RMB 7.638 billion in Q1 2022[21]. - The total compensation cost for the three months ended March 31, 2023, was RMB 27.299 billion, down from RMB 29.229 billion for the same period in 2022[114]. - The company incurred depreciation and amortization costs totaling RMB 5.182 billion for the three months ended March 31, 2023[191]. Assets and Liabilities - The total assets amounted to RMB 1,517.206 billion as of March 31, 2023, down from RMB 1,578.131 billion as of December 31, 2022[24]. - The company’s cash and cash equivalents stood at RMB 153.328 billion as of March 31, 2023, compared to RMB 156.739 billion at the end of 2022[24]. - The company’s total liabilities decreased to RMB 62,890 million from RMB 61,469 million, reflecting improved financial health[27]. - The company’s total equity as of March 31, 2023, was RMB 876,693 million, compared to RMB 806,299 million as of December 31, 2022[28]. - The company’s cash and cash equivalents as of March 31, 2023, amounted to RMB 236,611 million, slightly up from RMB 234,048 million at the end of 2022[67]. - The company’s net cash position was RMB 31.5 billion, an improvement from a net debt of RMB 14.8 billion as of December 31, 2022[197]. Investments - The fair value of listed investments was RMB 472.8 billion as of March 31, 2023, while the book value of unlisted investments was RMB 332.5 billion[18]. - The investment in associates as of March 31, 2023, was RMB 245,659 million, slightly down from RMB 246,043 million as of December 31, 2022[38]. - The fair value of investments in associates was approximately RMB 259,990 million as of March 31, 2023, down from RMB 264,090 million at the end of 2022[65]. - The company made new investments totaling approximately RMB 2,983 million in investment companies primarily engaged in corporate services and social media platforms during the three months ended March 31, 2023[70]. Shareholder Information - The company declared a special interim dividend of approximately 948 million shares of Meituan Class B ordinary shares on November 16, 2022[37]. - The company repurchased 12,473,100 shares at a total cost of approximately HKD 4.629 billion, which has been canceled to enhance long-term shareholder value[112]. - The company’s share premium was reported at RMB 62,425 million, slightly up from RMB 62,418 million at the beginning of the year[27]. - The total amount of transactions with equity holders during the period was RMB 22,675 million, compared to RMB 20,934 million in the previous period[28]. Employee and Incentive Plans - As of March 31, 2023, the total employee count was 106,221, a decrease from 116,213 as of March 31, 2022[113]. - The company has adopted two share incentive plans, which remain effective as of March 31, 2023[53]. - The company allowed certain grantees under the post-IPO share option plan II to waive their rights to a portion of shares to offset the exercise price and/or personal income tax[50]. - The total number of awarded shares under the share incentive plan was 124,247,035, a slight decrease from 124,346,750 in the previous year[75]. - The company granted 74,542 incentive shares to five independent non-executive directors for the three months ended March 31, 2023, compared to 52,000 shares for the same period in 2022[76]. Financial Instruments and Gains - The fair value changes of financial assets measured at fair value through other comprehensive income resulted in a gain of RMB 33,644 million[27]. - The company reported a fair value change of RMB 35,595 million for financial assets measured at fair value through other comprehensive income during the three months ended March 31, 2023[45]. - The company recognized a net loss of approximately RMB 213 million from other financial instruments, compared to a net gain of approximately RMB 75 million for the same period in 2022[195]. - The fair value gains from financial assets measured at fair value through profit or loss included net gains of approximately RMB 249 million related to wealth management investments, up from RMB 53 million in the same period last year[193]. Accounting and Standards - The company adopted new accounting standards effective January 1, 2023, which did not have a significant impact on the consolidated financial statements[186].