TENCENT(HK:00700) Zhong Guo Zheng Quan Bao·2025-08-13 13:07Core Insights - Tencent reported a revenue of 364.53 billion RMB for the first half of 2025, marking a 14% year-on-year increase, with a net profit attributable to shareholders of 124.38 billion RMB, up 16% [1] - In Q2 2025, Tencent achieved a revenue of 184.50 billion RMB, reflecting a 15% year-on-year growth, and a net profit of 63.05 billion RMB, which is a 10% increase [1] Business Performance - Tencent's three main business segments showed steady growth in Q2 2025, with value-added services revenue increasing by 16% to 91.37 billion RMB, driven by a 22% growth in gaming revenue [2][4] - The domestic gaming market saw a 17% revenue increase to 40.4 billion RMB, while international gaming revenue surged by 35% to 18.8 billion RMB [2] - Social network revenue grew by 6% to 32.2 billion RMB, supported by mobile game virtual item sales and video account live streaming services [2] Marketing and Financial Services - Tencent's marketing services revenue reached 35.76 billion RMB in Q2, a 20% year-on-year increase, benefiting from AI-driven improvements in advertising platforms [5] - Financial technology and enterprise services revenue improved by 10% to 55.54 billion RMB, with growth attributed to consumer loan services and increased demand for AI-related services [5] Profitability and Investment - Gross profit for Q2 2025 increased by 22% to 105 billion RMB, with gross margin rising from 53% to 57% [6] - Tencent's R&D expenditure was 20.25 billion RMB, up 17%, while capital expenditure surged by 119% to 19.11 billion RMB [6] User Engagement and AI Strategy - By the end of Q2 2025, the combined monthly active users of WeChat and WeChat reached 1.411 billion [7] - Tencent's CEO highlighted ongoing investments in AI, which have contributed to double-digit percentage growth in both revenue and operating profit [7]