TENCENT(HK:00700) Mei Ri Jing Ji Xin Wen·2025-09-17 07:48Core Insights - The global economy is facing multiple risks such as economic fluctuations, trade barriers, and supply chain disruptions, leading to increased costs and shrinking profits for companies, which are now in a dilemma of revenue growth without profit [1] - Companies must innovate and improve efficiency to regain growth, with AI being identified as a crucial driver for efficiency transformation [1] - Embracing large models in AI is no longer optional for businesses; companies are encouraged to adopt a cautious approach by iterating quickly rather than targeting high-barrier industries immediately [1] AI Application Growth - AI applications are experiencing explosive growth, with China's daily token consumption increasing from 100 billion to over 30 trillion in just 1.5 years, a growth of over 300 times [3] - Tencent's R&D investment rose by 17% year-on-year to 20.25 billion yuan, while capital expenditure surged by 119% to 19.11 billion yuan in Q2 [3] - Tencent is committed to investing in AI infrastructure to support both its business applications and customer needs, viewing AI as a fundamental infrastructure rather than just a tool [3] International Expansion - Tencent Cloud's overseas customer base has doubled in the past year, making it one of the fastest-growing segments for the company [4] - Tencent plans to invest $150 million to build its first data center in the Middle East, specifically in Saudi Arabia [4] - Domestic cloud providers are increasingly competitive internationally, with China's unique advantages in supply chain management providing a significant edge [4] Market Strategy - Tencent maintains a long-term strategy focused on sustainable business practices rather than engaging in price wars or low-quality projects [5] - The company believes that the current market environment in China is characterized by significant internal competition, which will eventually lead to a focus on improving overall operational efficiency [4][5]