TENCENT(HK:00700) 21世纪经济报道·2025-11-14 04:02Core Viewpoint - Tencent's Q3 2025 financial results show robust growth in revenue and profit, driven by AI advancements across gaming, advertising, and enterprise services [2][3]. Financial Performance - Tencent's total revenue for Q3 2025 reached 192.869 billion RMB, a 15% year-on-year increase [2]. - Non-IFRS net profit attributable to shareholders was 70.6 billion RMB, up 18% year-on-year, outpacing revenue growth [2]. - Gross profit increased by 22% to 108.8 billion RMB, with an overall gross margin rising from 53% to 56% compared to the same period last year [2]. AI Development - AI was a central topic during the analyst call, with Tencent emphasizing its positive impact on performance [2]. - Tencent is actively upgrading its mixed Yuan model and expanding top-tier R&D talent, with R&D expenses increasing by 28% year-on-year [3]. - AI chip supply constraints are identified as a limiting factor for cloud business growth, with Tencent prioritizing internal AI model training over external leasing of computing power [3]. Advertising and Gaming Growth - Advertising revenue grew by 21% year-on-year to 36.2 billion RMB, maintaining double-digit growth for twelve consecutive quarters [4]. - Approximately half of the advertising revenue growth is attributed to AI-driven system upgrades and increased ad exposure from platforms like Video Accounts and WeChat Search [5]. - International gaming revenue surpassed 20 billion RMB for the first time, accounting for 32% of total gaming revenue, driven by growth from Supercell games and recent acquisitions [5]. Capital Expenditure and Strategy - Tencent confirmed that its capital expenditure for 2025 will be lower than previously guided, but this does not indicate a slowdown in AI investment [6]. - The adjustment in capital expenditure is related to AI chip supply issues rather than a change in AI strategy [6]. Product Positioning - Tencent differentiates WeChat and QQ from platforms like Facebook and Instagram, focusing on communication and social media functionalities [6]. - WeChat is positioned for a broad audience, while QQ targets younger users, providing a space free from parental oversight [6]. AI Integration in WeChat - Tencent is developing AI capabilities within WeChat, leveraging its extensive user data and ecosystem for intelligent task execution [7]. - The vision for WeChat's AI capabilities is still in early stages, with ongoing efforts to enhance user experience through AI-driven features [7].