TENCENT(HK:00700) 2 1 Shi Ji Jing Ji Bao Dao·2025-08-13 12:03Core Insights - Tencent reported Q2 revenue of 184.5 billion RMB, a 15% year-on-year increase, with net profit attributable to shareholders at 55.63 billion RMB, up 17% [2] - The company emphasized its ongoing investment in AI, which is contributing to its growth across various business segments [2] Revenue Breakdown - Value-added services revenue reached 91.37 billion RMB, a 16% increase year-on-year, driven by growth in gaming and social network services [3] - Marketing services revenue grew by 20% to 35.76 billion RMB, benefiting from AI-driven improvements in advertising platforms [4] - Financial technology and enterprise services revenue increased by 10% to 55.54 billion RMB, supported by rising demand for AI-related services [5] Gaming Performance - International gaming revenue surged by 35% to 18.8 billion RMB, with notable performance from Supercell's "Clash Royale" [4] - Domestic gaming revenue reached 40.4 billion RMB, driven by the success of "Delta Action," which achieved over 20 million daily active users [4] Cost and Profitability - Gross profit margin improved to 57%, up from 53% year-on-year, due to strong performance in high-margin products like video accounts and mini-programs [4] - Operating profit was 60.1 billion RMB, with an operating margin of 33%, reflecting improved efficiency [3] Investment and Expenditure - R&D expenses increased by 17% to 20.25 billion RMB, with capital expenditures rising significantly by 119% to 19.1 billion RMB, indicating a strong focus on AI infrastructure [5] - General and administrative expenses rose by 16% to 31.92 billion RMB, primarily due to increased R&D and employee costs [5] Cash Flow and Share Buyback - Tencent's total cash holdings amounted to 468.4 billion RMB, with free cash flow of 43 billion RMB, a 7% increase year-on-year [6] - The company repurchased 38.88 million shares at a cost of 19.4 billion HKD during the quarter [6]