TENCENT (00700) released its annual performance, with a net profit attributable to shareholders of 2248.42 billion yuan, an increase of 16% year-on-year. The final dividend per share is 5.3 Hong Kong dollars.

TENCENT (00700) announced its annual performance for the year ended December 31, 2025. The group achieved a revenue of RMB 751.766 billion, up 14% year-on-year; net profit attributable to equity holders of the company was RMB 224.842 billion, up 16% year-on-year; net profit attributable to equity holders of the company under non-International Financial Reporting Standards was RMB 259.626 billion, up 17% year-on-year; basic earnings per share were RMB 24.749, and a final dividend of HKD 5.3 per share was proposed. For the three months ended December 31, 2025, the group achieved a revenue of RMB 194.371 billion, up 13% year-on-year; net profit attributable to equity holders of the company was RMB 58.26 billion, up 14% year-on-year; net profit attributable to equity holders of the company under non-International Financial Reporting Standards was RMB 64.694 billion, up 17% year-on-year; basic earnings per share were RMB 6.433. In 2025, we maintained healthy growth, benefiting from AI technology enhancing our advertising targeting ability and player interaction in games, as well as accelerated growth in cloud service revenue and achieving scalable profitability. Our core business is resilient and generates sufficient cash flow to support our increased investment in AI, including recruiting top AI talents and upgrading AI infrastructure. Our Turing 3.0 large language model intelligence level continues to improve, and AI products like Yuanbao, WorkBuddy, and QClaw are showing real utility. These encouraging early signs indicate that our investment in AI will open up new opportunities for us. People enjoy consumption and entertainment, as well as satisfaction from creation and efficient work. Tencent is honored to provide comprehensive AI services to empower users in these areas and help them achieve greater success. The revenue of value-added services for the year ended December 31, 2025 increased by 16% to RMB 369.3 billion. Domestic market game revenue was RMB 164.2 billion, up 18%, driven by the strong performance of recent releases like "Delta Force," as well as revenue growth in perennial games like "King of Glory," "Game for Peace," and the "Fearless Contract" series (PC and mobile). International market game revenue was RMB 77.4 billion, up 33% (32% at fixed exchange rates), benefiting from growth in games under the Supercell umbrella, "PUBG MOBILE," and incremental revenue from "Ringing Tide." Social network revenue increased by 5% to RMB 127.7 billion, driven by the growth in video livestream services, music subscription revenue, and virtual item sales in mobile game apps. Marketing services revenue for the year ended December 31, 2025 increased by 19% to RMB 145 billion, mainly attributed to increases in ad prices and exposure. Ad prices were boosted by AI-driven precision targeting, increased use of AI by advertisers to create more ads, and the continued growth in closed-loop ads (directing users to native transactional scenes like mini programs, WeChat stores, or mini games after clicking). Exposure growth was driven by increased user engagement in products like video livestream services and WeChat search, as well as a minor increase in ad loading rates. Most major industries saw an increase in advertising spending throughout the year. The revenue of financial technology and enterprise services for the year ended December 31, 2025 increased by 8% to RMB 229.4 billion. Financial technology services revenue saw high single-digit percentage growth, driven by increases in wealth management services, consumer loan services, and commercial payment activities. Enterprise services revenue grew by nearly 20%, benefiting from increased demand for cloud services (including AI-related services) domestically and overseas, as well as an increase in business technology service fees due to rising transactions in WeChat stores.