TENCENT(HK:00700) Shang Hai Zheng Quan Bao·2025-11-14 00:48Core Insights - Tencent reported Q3 revenue of 192.87 billion yuan, a 15% year-on-year increase, and a net profit of 70.55 billion yuan (Non-IFRS), up 18% year-on-year [2] Capital Expenditure - Q3 capital expenditure was 12.98 billion yuan, showing a decline both year-on-year and quarter-on-quarter, but still at a high level [3] - The company plans to reduce overall capital expenditure in 2025 compared to previous guidance, but it will be higher than the actual expenditure in 2024 [3] - Tencent's President Liu Chiping stated that the company has sufficient GPU resources and does not see a significant competitive advantage in AI models beyond its own [3] AI Investments - Current spending related to AI includes R&D, with increasing investments in AI expected to enhance efficiency and reduce costs [4] - AI's benefits are primarily reflected in revenue and gross profit at this stage [4] WeChat and AI Integration - Liu Chiping mentioned that WeChat has integrated various capabilities based on its AI model, enhancing user experience and interaction [5] - The ideal vision is to develop an AI assistant within WeChat to help users complete numerous tasks easily [5][6] - The development of this AI assistant is still in its early stages, with ongoing efforts to enhance search capabilities and user assistance [7] Collaboration with Apple - Tencent has reportedly reached an agreement with Apple regarding a 15% revenue share from payments made through WeChat mini-games and programs [8] - Liu Chiping emphasized a constructive attitude towards ongoing collaboration with Apple to promote a healthier mini-game ecosystem [8] International Gaming Business - Tencent's international gaming revenue grew by 43% year-on-year, surpassing 20 billion yuan for the first time, reaching 20.8 billion yuan [9] - The growth rate exceeded internal forecasts, attributed to new studio acquisitions and successful integration [9] - The company plans to continue collaborating with overseas game studios and aims to promote more Chinese-made games globally [9]