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Tencent Proclaims 2019 Fourth Quarter and Annual Outcomes

HONG KONG, March 18, 2020 /PRNewswire/ — Tencent Holdings Restricted (“Tencent” or the “Firm”, 00700.HK), a number one supplier of Web worth added companies in China, as we speak introduced the unaudited consolidated outcomes for the fourth quarter of 2019 (“4Q2019”) and audited consolidated outcomes for the 12 months ended December 31, 2019 (“FY2019”).

4Q2019 Key Highlights

Revenues: +25% YoY, non-IFRS[1] revenue attributable to fairness holders of the Firm: +29% YoY

  • Whole revenues had been RMB105,767 million (USD15,161 million[2]), a rise of 25% over the fourth quarter of 2018 (“YoY”).
  • On a non-IFRS foundation, which is meant to replicate core earnings by excluding sure one-time and/or non-cash objects:

–  Working revenue was RMB30,306 million (USD4,344 million), a rise of 35% YoY. Working margin elevated to 29% from 26% final 12 months.
–  Revenue for the quarter was RMB26,639 million (USD3,819 million), a rise of 32% YoY. Internet margin elevated to 25% from 24% final 12 months.
–  Revenue attributable to fairness holders of the Firm for the quarter was RMB25,484 million (USD3,653 million), a rise of 29% YoY.
–  Primary earnings per share had been RMB2.690. Diluted earnings per share had been RMB2.643.

–  Working revenue was RMB28,604 million (USD4,100 million), a rise of 65% YoY. Working margin elevated to 27% from 20% final 12 months.
–  Revenue for the interval was RMB22,372 million (USD3,207 million), a rise of 60% YoY. Internet margin elevated to 21% from 17% final 12 months. 
–  Revenue attributable to fairness holders of the Firm for the quarter was RMB21,582 million (USD3,094 million), a rise of 52% YoY.
–  Primary earnings per share had been RMB2.278. Diluted earnings per share had been RMB2.248.

[1] Non-IFRS (previously known as non-GAAP) changes excludes share-based compensation, M&A associated influence reminiscent of internet (beneficial properties)/losses from investee corporations, amortisation of intangible belongings and impairment provision, in addition to earnings tax results.

[2] Figures said in USD are primarily based on USD1 to RMB6.9762

FY2019 Key Highlights

Revenues: +21% YoY, non-IFRS revenue attributable to fairness holders of the Firm: +22% YoY

  • Whole revenues had been RMB377,289 million (USD54,082 million), a rise of 21% over the 12 months ended December 31, 2018 (“YoY”).
  • On a non-IFRS foundation, which is meant to replicate core earnings by excluding sure one-time and/or non-cash objects:

–  Working revenue was RMB114,601 million (USD16,427 million), a rise of 24% YoY. Working margin was 30%, broadly secure from final 12 months.
–  Revenue for the 12 months was RMB97,589 million (USD13,989 million), a rise of 22% YoY. Internet margin remained secure at 26%.
–  Revenue attributable to fairness holders of the Firm for the 12 months was RMB94,351 million (USD13,525 million), a rise of 22% YoY.
–  Primary earnings per share had been RMB9.966. Diluted earnings per share had been RMB9.729.

–  Working revenue was RMB118,694 million (USD17,014 million), a rise of 22% YoY. Working margin was 31%, broadly secure from final 12 months.
–  Revenue for the 12 months was RMB95,888 million (USD13,745 million), a rise of 20% YoY. Internet margin decreased to 25% from 26% final 12 months. 
–  Revenue attributable to fairness holders of the Firm for the 12 months was RMB93,310 million (USD13,375 million), a rise of 19% YoY.
–  Primary earnings per share had been RMB9.856. Diluted earnings per share had been RMB9.643.

  • The Board has advisable a remaining dividend of HKD1.20 per share for FY2019 (2018: HKD1.00 per share), topic to the approval of the shareholders on the Annual Basic Assembly.

Mr. Ma Huateng, Chairman and CEO of Tencent, mentioned, “Throughout 2019, we bolstered our management in Client Web and prolonged our presence in Industrial Web, whereas sustaining wholesome working and monetary metrics. Our communication and social platforms turned more and more vibrant as our Weixin ecosystem higher linked customers with companies. Our worldwide sport enterprise broke by means of to a a lot bigger viewers with the success of titles reminiscent of PUBG Cell and Name of Obligation Cell. We deepened our fee penetration amongst offline retailers and expanded our vary of wealth administration merchandise. And we have now strengthened our promoting and cloud options, enabling us to higher serve our enterprise prospects and so develop our enterprise scale. Amid the COVID-19 scenario, we have now labored relentlessly to assist people and serve society, organizing charitable and voluntary actions, enhancing and making broadly accessible helpful know-how instruments together with WeChat Work, Tencent Assembly app, Tencent Medipedia info service, and Tencent Classroom app, as we search to satisfy our company mission of Worth for Customers, Tech for Good.”

4Q2019 Monetary Evaluate

Revenues from VAS elevated by 20% YoY to RMB52,308 million. On-line video games revenues rose by 25% YoY to RMB30,286 million. The rise was primarily pushed by income progress from sensible telephone video games in each home and abroad markets, together with titles reminiscent of Peacekeeper Elite and PUBG Cell, in addition to income contribution from Supercell titles, partly offset by decrease revenues from PC consumer video games reminiscent of DnF. Social networks revenues grew by 13% to RMB22,022 million, primarily reflecting better contributions from digital content material companies reminiscent of dwell broadcast and music streaming companies.

Revenues from FinTech and Enterprise Providers elevated by 39% YoY to RMB29,920 million. The rise was primarily attributable to better income contributions from business fee, in addition to income progress from cloud companies because of deeper penetration in key verticals.

Revenues from On-line Promoting elevated by 19% YoY to RMB20,225 million. Social and others promoting revenues elevated by 37% to RMB16,274 million, primarily pushed by promoting income progress from Weixin Moments and our cellular promoting community. Media promoting revenues decreased by 24% to RMB3,951 million. The lower primarily mirrored decrease promoting revenues from our media platforms together with Tencent Video and Tencent Information attributable to unsure broadcasting schedules and fewer telecasts of sports activities occasions.

Different Key Monetary Data for 4Q2019

EBITDA was RMB35,675 million, up 31% YoY. Adjusted EBITDA was RMB38,572 million, up 30% YoY.

Capital expenditure was RMB16,869 million, up 270% YoY.

Free money movement* was RMB37,896 million, up 27% YoY.

As at December 31, 2019, internet debt place totalled RMB15,552 million. Truthful worth of our stakes in listed investee corporations (excluding subsidiaries) totalled RMB419,818 million.

* Ranging from the primary quarter of 2019, we have now reclassified curiosity paid in money movement presentation from working actions to financing actions with a purpose to replicate the character of enterprise. Comparative figures have been reclassified to evolve with the present interval presentation.

Working Metrics


As at

31 December

2019

As at

31 December

2018

12 months-

on-year

change

As at

30 September

2019

Quarter-
on-quarter

change


(in tens of millions, until specified)

Mixed MAU of Weixin
and WeChat

1,164.8

1,097.6

6.1%

1,151.0

1.2%







Sensible gadget MAU of QQ                                     

647.0

699.8

-7.5%

653.4

-1.0%







Charge-based VAS registered
subscriptions

180.1

160.3

12.4%

170.6

5.6%

Strategic Progress and Outlook

Our key strategic priorities embrace cultivating our main place within the Client Web, embracing alternatives introduced by the Industrial Web, and energizing our company tradition. Throughout 2019, we consider we made substantial progress on distinguished facets of our company technique, and we see scope for additional growth, main us to proceed to evolve our plans as we attempt to sort out new challenges and seize new alternatives. Reviewing a few of our necessary product areas and enterprise traces:

Communication and Social

Our strategic focus on this enterprise is strengthening connections between customers by way of digital content material, on-line companies, and offline companies, in addition to enhancing connections with enterprises leveraging Mini Packages, Weixin Pay and WeChat Work.

In 2019, we supplied Weixin customers with handy entry to public companies and healthcare content material. We enriched content material in Mini Packages and information feeds companies in video format and enabled customers to share quick movies by way of Weishi inside Moments. Weixin and WeChat engagement metrics stayed excessive as their energetic consumer base and consumer time spent elevated. Every day messages despatched had been up 15% year-on-year for the fourth quarter of 2019. We rejuvenated QQ with enhanced chat options and buddy suggestion, and we expanded leisure use circumstances by way of Mini Video games, rising QQ’s recognition amongst youthful generations. Because the coronavirus outbreak, QQ College-plus-House teams have served greater than 120 million customers, with optimised options reminiscent of dwell broadcast, on-line tutoring applications and on-line administrative instruments for college routines to facilitate on-line and offline training. To strengthen our connections with enterprises, we facilitated discovery of retailers’ Mini Packages and gross sales conversion by enhancing Weixin in-app search and dwell broadcast capabilities. The variety of every day transactions generated inside Mini Packages greater than doubled year-on-year, and their transaction worth exceeded RMB800 billion in 2019.

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Trying ahead, we search to make our customers’ on a regular basis life extra handy by means of our communication merchandise, to develop the total potential of Mini Packages, and to introduce new social experiences enabled by know-how improvements.

On-line Video games

In our on-line video games enterprise, our strategic focus was on enhancing our inner R&D functionality and exterior partnerships, and increasing our abroad enterprise.

Throughout 2019, we prolonged our China management and made notable progress in our abroad enterprise, largely as a result of success of our video games PUBG Cell and Name of Obligation Cell, in addition to the brand new mode Teamfight Ways inside League of Legends. Our worldwide video games revenues greater than doubled year-on-year, constituting 23% of our on-line video games income within the fourth quarter of 2019. As of the top of 2019, 5 out of the highest ten most-popular sensible telephone video games by DAU internationally had been developed by us. Along with establishing our unique IP franchises, we developed exterior partnerships by way of a variety of new investments in best-in-genre studios. Key studios reminiscent of Timi and Lightspeed & Quantum beneath Tencent, in addition to Riot Video games and Supercell, have enhanced their R&D functionality, and every have a number of promising video games in its pipeline. We consider our studios are trade leaders on PC and sensible telephone video games, and in genres reminiscent of multi-player battle area and tactical match, however nonetheless have room to boost our capabilities in different genres reminiscent of role-playing video games. Leveraging our flagship video games franchises, we strengthened our eSports international management with League of Legend’s World Championship and Honour of Kings’ KPL, which had been essentially the most watched occasions for PC and sensible telephone video games, respectively.

Trying ahead, we are going to search to increase our home sport trade management, reinforce our worldwide efforts, and supply top quality new video games globally.

Digital Content material

In digital content material, we concentrate on investing in digital content material and rising our subscription enterprise, and increasing our franchise in lengthy type video to quick type video.

In 2019, our fee-based VAS subscriptions elevated 12% year-on-year to 180 million. We skilled slower subscriber and income progress for our video subscription service in 2019 than 2018, reflecting delays in broadcasting key content material; nonetheless our Tencent Video subscriptions reached 106 million, and we remained the clear trade chief by way of content material, customers, and monetary metrics, lowering our 2019 working loss to beneath RMB3 billion, considerably decrease than the loss charges of trade friends. We’re more and more expert at commissioning and creating in-house content material, particularly in areas reminiscent of drama sequence, anime sequence, and selection exhibits. We now have prolonged our owned IP, reminiscent of Pleasure of Life (慶餘年), from on-line novels into profitable TV drama sequence. We accelerated our music subscriber progress within the second half of 2019, benefitting from the pay-for-streaming mannequin. Our literature subscriber progress was weak for a lot of 2019 attributable to competitors from free studying companies, however we’re seeing indicators of enchancment, as our Weixin Studying app turns into extra standard, and as readers differentiate the widely greater high quality of paid content material.

Throughout 2019, we have now aggressively stepped up our funding within the quick type video house, given customers are spending substantial time watching such movies. Because of our efforts, our quick video app Weishi elevated its DAU 80% and every day uploads 70% sequentially within the fourth quarter of 2019. We enhanced our video content material recognition know-how to boost consumer content material creation and make smarter content material suggestions. We added modern options reminiscent of video crimson packets to spice up social video uploads and leveraged in-house IPs to help content material creation by key opinion leaders (KOLs) and multi-channel networks (MCNs). We’re within the early levels of what we anticipate to be a multi-year funding in brief type video, however the truth that we overcame a late begin in lengthy type video to turn out to be the trade’s chief, along with our potential to leverage our social community and media properties, and our substantial progress in latest months, offers us confidence in our long run prospects in brief type video.

On-line Promoting

In promoting, we search to boost our consumer focusing on functionality to extend ROIs (return on investments) for advertisers.

Through the first half of 2019, weak macro-economic situations and competitors for promoting spending negatively impacted our promoting enterprise. Nevertheless, the unification of our promoting know-how and gross sales groups, enhanced consumer focusing on, in addition to simplified inventories and advertiser instruments enabled us to re-establish enterprise momentum from the second half of 2019 in our core “social and others” promoting class, which accounted for the massive majority of our whole promoting income within the fourth quarter of 2019. Particularly, we prolonged the utmost variety of advert impressions per consumer day in Weixin Moments from two to a few in early 2019, and efficiently examined a fourth impression in late 2019. Leveraging our information and know-how, we consider we have now taken substantial market share in advert networks, the place we have now skilled strong income progress, and improved working margin. Our media promoting enterprise was harm by delays in broadcasting sure drama sequence and fewer promoting actions round NBA basketball video games.

Trying ahead, we consider our aggressive place in promoting has notably improved, and, regardless of trade challenges, we enter 2020 with the proper staff and know-how to boost advertiser ROIs and improve our promoting market share, whereas persevering with to supply interesting shopper experiences. 

FinTech

In FinTech, we attempt to drive fee innovation, add fee use circumstances, and broaden our wealth administration portfolio.

Throughout 2019, we strengthened our management in cellular fee companies by means of deepening our penetration amongst offline retailers. Within the fourth quarter of 2019, we exceeded 1 billion every day common transactions for our business funds, coated over 800 million month-to-month energetic customers, and labored with over 50 million month-to-month energetic retailers. We launched Weixin Pay Scores which enhanced customers’ buy propensity and loyalty to retailers by means of options reminiscent of waiving creditworthy customers their deposits on some rental use circumstances. Our wealth administration platform, LiCaiTong, elevated its combination buyer belongings over 50% year-on-year, whereas its variety of prospects greater than doubled year-on-year as we expanded into the mass market. Our affiliate WeBank quickly grew the mortgage balances of its micro-loan product, WeiLiDai, inside Weixin, whereas sustaining a wholesome non-performing mortgage ratio.

Trying ahead, we are going to search to increase our fee use circumstances, present new FinTech services and products, and improve the underlying capabilities and stability of our platform. 

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Cloud and Enterprise Providers

In Cloud and Enterprise Providers, we concentrate on creating personalized trade options, enabling our enterprise companions to higher join with our customers, and helping a variety of industries in digital upgrades.

Our cloud companies revenues exceeded RMB17 billion in 2019, as we persistently outgrew the market. Our variety of paying prospects exceeded 1 million, benefitting from enhanced gross sales staff and deeper partnerships with system integrators. Gross margins improved as we optimized provide chains and expanded enterprise scale. We elevated our market share and gained presence in verticals reminiscent of Web companies, tourism, municipal companies and industrial sectors, leveraging our shopper attain to help enterprises of their digital upgrades. The COVID-19 pandemic is delaying prospects’ implementation of cloud-related initiatives and can thus negatively influence our near-term cloud companies revenues, however we consider enterprises might be more and more eager to undertake cloud-based options over the long run, with a purpose to facilitate distant working and distant interactions with their prospects.

2020’s COVID-19 pandemic highlights the utility of distant working and distant well being care companies, and we’re looking for to play our half in serving to individuals deal with the brand new problem. Tencent Assembly exceeded 10 million DAUs inside two months since its launch in late December 2019, by far the most-used devoted video conferencing app in China. We deepened the mixing between Weixin and WeChat Work to facilitate buyer administration and gross sales conversion, and tens of millions of enterprises used WeChat Work to renew work within the wake of the coronavirus outbreak. Over 300 million Weixin customers have utilized Tencent Well being as an necessary entry to real-time pandemic information, on-line session and AI-powered self-diagnosis companies. We supplied our medical AI imaging capabilities to help prognosis of coronavirus illness. We additionally provided dependable {and professional} medical info by means of Tencent Medipedia, and distributed pandemic-related content material by way of a number of high-traffic platforms, reminiscent of Weixin and Tencent Information, attracting over 600 million web page views. Tencent Well being Code turns into essentially the most used ePass for verifying well being and journey historical past through the outbreak. 900 million customers throughout greater than 300 cities and counties have used our Well being Code because it was accessible on this February, with a complete of Eight billion visits. Trying ahead, we are going to search to each meet the fast wants for our merchandise caused by the pandemic, and develop our capabilities to anticipate and serve enterprises’ long run calls for because the financial system digitizes.

Environmental, Social and Governance (“ESG”) Initiatives

We made notable progress on our ESG efficiency in 2019. We inaugurated an Xplorer Prize to help basic science and cutting-edge know-how analysis. WeCounty Platform, our initiative to facilitate digitalization of China’s rural areas and poverty alleviation, has linked 15,000 villages in 29 provinces, serving over 2.5 million villagers on the finish of 2019. We cooperated with famend museums worldwide to advertise cultural inheritance by way of museum-specific Mini Packages. We improved the vitality consumption effectivity of our information facilities. We diversified our board of administrators with the inclusion of Professor Ke Yang, who brings her experience in healthcare and medical analysis.

As we entered 2020, we confronted the challenges of the coronavirus pandemic, which has profoundly impacted the worldwide financial system. We responded by establishing a RMB1.5 billion emergency fund to supply reduction help and by leveraging our cloud sources and know-how to help pandemic-related program growth and medical analysis. Our groups have labored relentlessly to improve our capabilities and merchandise to replace the general public with authoritative information and knowledge associated to the pandemic, and to supply healthcare companies, companies and academic institutions with entry to distant office and collaborative instruments. We additionally cooperated with Dr. Zhong Nanshan to fund his coronavirus analysis and supplied our medical AI imaging capabilities to help creating a fast take a look at for COVID-19. We consider these efforts embody our mission, “Worth for Customers, Tech for Good”.

For different detailed disclosure, please confer with our web site http://www.tencent.com/en-us/buyers.html, or observe us by way of Weixin Official Account (Weixin ID: Tencent_IR)

About Tencent

Tencent makes use of know-how to counterpoint the lives of Web customers.

Our communication and social platforms, Weixin and QQ, join customers with one another and with digital content material and companies, each on-line and offline, making their lives extra handy. Our focused promoting platform helps advertisers attain out to lots of of tens of millions of customers in China. Our FinTech and enterprise companies help our companions’ enterprise progress and help their digital improve.

Tencent invests closely in expertise and technological innovation, actively selling the event of the Web trade. Tencent was based in Shenzhen, China, in 1998. Shares of Tencent (00700.HK) are listed on the Principal Board of the Inventory Change of Hong Kong.

For investor and media enquiries, please contact:

Non-IFRS Monetary Measures

To complement the consolidated outcomes of the Group ready in accordance with IFRS, sure further non-IFRS monetary measures (by way of working revenue, working margin, revenue for the interval, internet margin, revenue attributable to fairness holders of the Firm, fundamental EPS and diluted EPS), have been offered on this press launch. These unaudited non-IFRS monetary measures must be thought-about along with, not as an alternative to, measures of the Group’s monetary efficiency ready in accordance with IFRS. As well as, these non-IFRS monetary measures could also be outlined in a different way from related phrases utilized by different corporations.

The Firm’s administration believes that the non-IFRS monetary measures present buyers with helpful supplementary info to evaluate the efficiency of the Group’s core operations by excluding sure non-cash objects and sure influence of M&A transactions. As well as, non-IFRS changes embrace related non-IFRS changes for the Group’s main associates primarily based on accessible printed financials of the related main associates, or estimates made by the Firm’s administration primarily based on accessible info, sure expectations, assumptions and premises.

Ahead-Trying Statements

This press launch incorporates forward-looking statements regarding the enterprise outlook, forecast enterprise plans and progress methods of the Firm. These forward-looking statements are primarily based on info at the moment accessible to the Firm and are said herein on the idea of the outlook on the time of this press launch. They’re primarily based on sure expectations, assumptions and premises, a few of that are subjective or past our management. These forward-looking statements might show to be incorrect and will not be realised in future. Underlying the forward-looking statements is a lot of dangers and uncertainties. Additional info concerning these dangers and uncertainties is included in our different public disclosure paperwork on our company web site.

CONSOLIDATED INCOME STATEMENT

RMB in tens of millions, until specified



Unaudited


Audited


4Q2019

4Q2018


2019

2018

Revenues

105,767

84,896


377,289

312,694

VAS

52,308

43,651


199,991

176,646

FinTech and Enterprise Providers

29,920

21,597


101,355

73,138

On-line Promoting

20,225

17,033


68,377

58,079

Others

3,314

2,615


7,566

4,831

Value of revenues

(59,659)

(49,744)


(209,756)

(170,574)

Gross revenue

46,108

35,152


167,533

142,120

Gross margin

44%

41%


44%

45%

Curiosity earnings

1,580

1,350


6,314

4,569

Different beneficial properties/(losses), internet

3,630

(2,139)


19,689

16,714

Promoting and advertising bills

(6,712)

(5,730)


(21,396)

(24,233)

Basic and administrative bills

(16,002)

(11,345)


(53,446)

(41,522)

Working revenue

28,604

17,288


118,694

97,648

Working margin

27%

20%


31%

31%

Finance prices, internet

(2,767)

(1,372)


(7,613)

(4,669)

Share of (loss)/revenue of associates and joint ventures

(1,328)

16


(1,681)

1,487

Revenue earlier than earnings tax

24,509

15,932


109,400

94,466

Earnings tax expense

(2,137)

(1,906)


(13,512)

(14,482)

Revenue for the interval

22,372

14,026


95,888

79,984

Internet margin

21%

17%


25%

26%

Attributable to:






    Fairness holders of the Firm

21,582

14,229


93,310

78,719

    Non-controlling pursuits

790

(203)


2,578

1,265







Non-IFRS revenue
    
attributable to fairness holders of the Firm

25,484

19,730


94,351

77,469







Earnings per share for revenue attributable to
     fairness holders of the Firm
    
(in RMB per share)






– fundamental

2.278

1.505


9.856

8.336

– diluted

2.248

1.489


9.643

8.228

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

RMB in tens of millions, until specified



Audited



2019

2018


Revenue for the 12 months

95,888

79,984


Different complete earnings, internet of tax:




Objects which may be subsequently reclassified to revenue or loss




Share of different complete earnings of associates and joint ventures

125

23


Switch of share of different complete earnings to revenue or loss upon deemed
    
disposal of associates

(3)


Foreign money translation variations

3,089

4,133


Different truthful worth (losses)/beneficial properties, internet

(2,139)

181


Objects that won’t be subsequently reclassified to revenue or loss




Internet beneficial properties/(losses) from adjustments in truthful worth of economic belongings at truthful worth
     by means of different complete earnings

23,119

(16,391)


Different truthful worth losses

(178)

(170)



24,013

(12,224)


Whole complete earnings for the 12 months

119,901

67,760


Attributable to:




    Fairness holders of the Firm

116,670

66,339


    Non-controlling pursuits

3,231

1,421


OTHER FINANCIAL INFORMATION

RMB in tens of millions, until specified



Unaudited


Audited


4Q2019

4Q2018


2019

2018

EBITDA (a)

35,675

27,180


137,268

110,404

Adjusted EBITDA (a)

38,572

29,701


147,395

118,273

Adjusted EBITDA margin (b)

36%

35%


39%

38%

Curiosity and associated bills

2,348

1,345


7,690

4,898

Internet debt (c)

(15,552)

(12,170)


(15,552)

(12,170)

Capital expenditures (d)

16,869

4,564


32,369

23,941

Note:

(a)  EBITDA consists of working revenue much less curiosity earnings and different beneficial properties/losses, internet, and including again depreciation of property, plant and tools,
funding properties in addition to right-of-use belongings, and amortisation of intangible belongings. Adjusted EBITDA consists of EBITDA plus equity-settled share-
primarily based compensation bills.

(b)  Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues.

(c)  Internet debt represents interval finish steadiness and is calculated as money and money equivalents, plus time period deposits and others, minus borrowings and notes
payable.

(d)  Capital expenditures consist of additives (excluding enterprise mixtures) to property, plant and tools, development in progress, funding
properties, land use rights and intangible belongings (excluding media contents, sport licenses and different contents).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

RMB in tens of millions, until specified




Audited


As at December 31


2019


2018

ASSETS




Non-current belongings




  Property, plant and tools

46,824


35,091

  Land use rights

15,609


7,106

  Proper-of-use belongings

10,847


  Development in progress

3,935


4,879

  Funding properties

855


725

  Intangible belongings

128,860


56,650

  Investments in associates

213,614


219,215

  Investments in joint ventures

8,280


8,575

  Monetary belongings at truthful worth by means of revenue or loss

128,822


91,702

  Monetary belongings at truthful worth by means of different

   complete earnings

81,721


43,519

  Prepayments, deposits and different belongings

23,442


21,531

  Different monetary belongings


1,693

  Deferred earnings tax belongings

18,209


15,755

  Time period deposits

19,000







700,018


506,441





Present belongings




  Inventories

718


324

  Accounts receivable

35,839


28,427

  Prepayments, deposits and different belongings

27,840


18,493

  Different monetary belongings

375


339

  Monetary belongings at truthful worth by means of revenue or loss

7,114


6,175

  Time period deposits

46,911


62,918

  Restricted money

2,180


2,590

  Money and money equivalents

132,991


97,814






253,968


217,080





Whole belongings

953,986


723,521

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

RMB in tens of millions, until specified





Audited



As at December 31



2019


2018

EQUITY





Fairness attributable to fairness holders of the Firm

  Share capital



  Share premium


35,271


27,294

  Shares held for share award schemes


(4,002)


(4,173)

  Different reserves


16,786


729

  Retained earnings


384,651


299,660








432,706


323,510






Non-controlling pursuits


56,118


32,697






Whole fairness


488,824


356,207






LIABILITIES





Non-current liabilities





  Borrowings


104,257


87,437

  Notes payable


83,327


51,298

  Lengthy-term payables


3,577


4,797

  Different monetary liabilities


5,242


3,306

  Deferred earnings tax liabilities


12,841


10,964

  Lease liabilities


8,428


  Deferred income


7,334


7,077








225,006


164,879






Present liabilities





  Accounts payable


80,690


73,735

  Different payables and accruals


45,174


33,312

  Borrowings


22,695


26,834

  Notes payable


10,534


13,720

  Present earnings tax liabilities


9,733


10,210

  Different tax liabilities


1,245


1,049

  Different monetary liabilities


5,857


1,200

  Lease liabilitiess


3,279


  Deferred income


60,949


42,375








240,156


202,435






Whole liabilities


465,162


367,314






Whole fairness and liabilities


953,986


723,521

RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS



As

reported

Changes

Non-IFRS


RMB in million,

until specified

Share-based

compensation (a)

Internet (beneficial properties)/losses from
investee corporations (b)

Amortisation of

intangible belongings (c)

Impairment

provision (d)

Earnings

tax results (e)


12 months ended December 31, 2019

Working revenue

118,694

10,500

(19,650)

1,051

4,006

114,601

Revenue for the 12 months

95,888

12,774

(20,818)

5,781

5,202

(1,238)

97,589

Revenue attributable to fairness
    
holders

93,310

12,309

(20,720)

5,362

5,185

(1,095)

94,351

Working margin

31%






30%

Internet margin

25%






26%


12 months ended December 31, 2018

Working revenue

97,648

7,900

(31,168)

524

17,577

92,481

Revenue for the 12 months

79,984

11,354

(32,513)

4,251

17,741

(525)

80,292

Revenue attributable to fairness
    
holders

78,719

11,025

(33,073)

4,027

17,238

(467)

77,469

Working margin

31%






30%

Internet margin

26%






26%


Notice:

(a)  Together with put choices granted to workers of investee corporations on their shares and shares to be issued beneath investee corporations’ share-based incentive plans which might be acquired by the Group, and different incentives

(b)  Together with internet (beneficial properties)/losses on deemed disposals/disposals of investee corporations, truthful worth adjustments arising from investee corporations, and different bills in relation to fairness transactions of investee corporations

(c)  Amortisation of intangible belongings ensuing from acquisitions

(d)  Impairment provisions for associates, joint ventures and intangible belongings arising from acquisitions

(e)  Earnings tax results of non-IFRS changes

RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS



As

reported

Changes

Non-IFRS


RMB in million,

until specified

Share-based

compensation (a)

Internet (beneficial properties)/losses from
investee corporations (b)

Amortisation of

intangible belongings (c)

Impairment

provision (d)

Earnings

tax results (e)


Unaudited three months ended December 31, 2019

Working revenue

28,604

3,269

(2,340)

701

72

30,306

Revenue for the interval

22,372

3,965

(1,412)

1,667

140

(93)

26,639

Revenue attributable to fairness
    
holders

21,582

3,756

(1,403)

1,406

133

10

25,484

Working margin

27%






29%

Internet margin

21%






25%


Unaudited three months ended September 30, 2019

Working revenue

25,827

2,745

(1,814)

118

1,668

28,544

Revenue for the interval

20,976

3,568

(2,509)

1,544

1,981

(474)

25,086

Revenue attributable to fairness

holders

20,382

3,475

(2,444)

1,491

1,971

(463)

24,412

Working margin

27%






29%

Internet margin

22%






26%


Unaudited three months ended December 30, 2018

Working revenue

17,288

2,459

1,579

198

864

22,388

Revenue for the interval

14,026

3,579

583

1,927

938

(813)

20,240

Revenue attributable to fairness
    
holders

14,229

3,504

(60)

1,839

1,013

(795)

19,730

Working margin

20%






26%

Internet margin

17%






24%


Notice:

(a)  Together with put choices granted to workers of investee corporations on their shares and shares to be issued beneath investee corporations’ share-based incentive plans which might be acquired by the Group, and different incentives

(b)  Together with internet (beneficial properties)/losses on deemed disposals/disposals of investee corporations, truthful worth adjustments arising from investee corporations, and different bills in relation to fairness transactions of investee corporations

(c)  Amortisation of intangible belongings ensuing from acquisitions

(d)  Impairment provisions for associates, joint ventures and intangible belongings arising from acquisitions

(e)  Earnings tax results of non-IFRS changes

SOURCE Tencent Holdings Restricted

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Associated Hyperlinks

http://www.tencent.com

Jung Min-seo

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