Tencent-backed AI chipmaker Shanghai Enflame Technology (688801.SS) will make its Shanghai stock market debut on September 11, an exchange filing showed on Wednesday.
Enflame, one of China's leading AI chip startups known locally as the "four little GPU dragons", raised 6.12 billion yuan ($912 million) by selling 43 million new shares at 142.18 yuan each in the initial public offering, the filing showed.
The offer price values Enflame at about 61.19 billion yuan ($9.12 billion), according to the filing. Only 4.16% of Enflame's post-offering shares, or 17.9 million shares, will be available for trading when it lists on Shanghai's tech-focused STAR Market.
Enflame, which develops and sells chips and related products used in AI computing, forecast a January to September net loss of 700 million yuan to 860 million yuan, narrowing from 887.8 million yuan a year earlier.
It forecast revenue of 2.3 billion yuan to 3 billion yuan, up 326% to 455%, the filing showed.
Enflame said it expects to break even or turn a profit in 2026 or 2027, depending on revenue and profit margins.
Tencent will hold a 17.95% stake after the IPO, making it Enflame's biggest shareholder, the filing showed. Tencent was also Enflame's largest end customer in 2025, accounting for 83.79% of its revenue, the filing showed.
Enflame's explosive growth offers strategic upside, but Tencent's own AI spending is already consuming free cash flow. Summary
Tencent-backed Enflame is challenging Nvidia while remaining unprofitable.
Tencent Holdings TCEHY, the Chinese gaming, social-media and cloud powerhouse, backed a serious homegrown assault on Nvidia's grip over China's roughly $90 billion AI-chip market. Tencent shares fell 0.99% to HK$438.40 Monday while the share traded at $56.6 in the US, leaving the stock 18.46% below its GF Value™ estimate of $69.41—a valuation gap that suggests investors remain cautious despite the AI upside.
The challenger is Enflame, which raised $908 million at a $9.1 billion valuation after delivering eye-popping first-quarter sales growth of 1,475%. But dazzling growth does not pay the bills by itself. Enflame is still losing money, turning chip performance, customer adoption and a credible path to profitability into the metrics that matter most.
Tencent can afford the gamble, but its AI spending is already hitting the financial statements. Second-quarter revenue rose 11% to RMB204.8 billion as capital expenditure rocketed 176% to RMB52.8 billion and free cash flow slipped to negative RMB13.8 billion. Domestic accelerators could protect Tencent from U.S. export restrictions and strengthen its cloud and AI businesses, but this investment only becomes strategic gold if it delivers cheaper, dependable computing power—not merely a valuable minority stake.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Tencent (TCEHY), China's gaming, social-media and digital-services heavyweight, rose to $56.19 Wednesdayâeven as demand for Enflame's initial public offering
Chinese AI chipmaker Shanghai Enflame Technology (688801.SS), backed by Tencent, drew investor orders worth 6,109 times the shares available in the online portion of its Shanghai initial public offering, an exchange filing showed on Wednesday.
Investors are betting Beijing's push to develop domestic alternatives to U.S. chip suppliers such as Nvidia (NVDA.O) will create opportunities for Chinese AI chipmakers, after President Donald Trump tightened curbs on exports of advanced chips and chipmaking equipment to China.
In response to the excess demand, Enflame moved 3.4 million shares from the offline tranche to the online sale after receiving orders from more than 7 million online investor accounts, Wednesday's filing showed.
It said the final winning rate for online investors was 0.025%. The company will announce the results on Friday.
'FOUR LITTLE GPU DRAGONS'
Enflame is one of China's leading AI chip startups, referred to in Chinese financial circles as the "four little GPU dragons". The other three — Moore Threads Technology (688795.SS), MetaX Integrated Circuits (688802.SS) and Shanghai Biren Technology (6082.HK) — have already sold shares publicly over the last year.
Founded eight years ago, Enflame has yet to make a profit, but it has powerful backing from social media and gaming companyTencent (0700.HK), which is one of its major shareholders and its largest customer.
Enflame set its IPO price at 142.18 yuan per share and aims to raise about 6.1 billion yuan ($908 million) by selling 43 million shares on Shanghai's tech-focused STAR Market.
It has said it plans to use the IPO proceeds to develop and produce its fifth- and sixth-generation AI chips and related software and hardware.
The company initially allocated 6.89 million shares, or 20% of the shares available after the strategic placement, to online investors, the filing showed.
The shift raised the online allocation to 10.33 million shares, or 30% of the post-strategic-placement offering, while the offline tranche received the remaining 70%, the filing showed.
, /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading all-in-one music and audio entertainment platform in China, today announced its proposed public offering (the "Proposed Offering") of its senior unsecured notes in one or more tranches, subject to market conditions and other factors. The notes have been registered under the U.S. Securities Act of 1933, as amended, and are expected to be listed on The Stock Exchange of Hong Kong Limited.
The Company intends to use the net proceeds from the Proposed Offering for general corporate purposes, including refinancing of offshore indebtedness and share repurchases.
The joint bookrunners of the Proposed Offering are J.P. Morgan Securities LLC, Goldman Sachs (Asia) L.L.C. and The Hongkong and Shanghai Banking Corporation Limited. The joint lead managers of the Proposed Offering are UBS AG Hong Kong Branch, Bank of China Limited and MUFG Securities Asia Limited.
The Company has an automatic shelf registration statement on Form F-3 (including a base prospectus) on file with the U.S. Securities and Exchange Commission (the "SEC") and has filed a related preliminary prospectus supplement with the SEC for the offering of the notes. The offering is being made only by means of the prospectus supplement and accompanying base prospectus. Before you invest, you should read the prospectus supplement and accompanying base prospectus and other documents that the Company has filed with the SEC for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send an investor the prospectus if the investor requests it by calling J.P. Morgan Securities LLC located at 270 Park Ave, New York, NY 10017, USA at +1-212-834-4533, Goldman Sachs & Co. LLC, an affiliate of Goldman Sachs (Asia) L.L.C., located at 200 West Street, New York, NY 10282, USA at +1-866-471-2526 or The Hongkong and Shanghai Banking Corporation Limited, located at L17, HSBC Main Building, 1 Queen's Road Central, Hong Kong at +1-866-811-8049.
This announcement is not an offer of the securities for sale in the United States and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities referred to herein have not been and will not be registered under the applicable securities laws of any jurisdiction outside of the United States.
About Tencent Music Entertainment
Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading all-in-one music and audio entertainment platform in China, operating the country's highly popular and innovative music and audio apps: QQ Music, Kugou Music, Kuwo Music, WeSing and Ximalaya. TME's mission is to create endless possibilities with music and technology. Powered by its content-and-platform dual-engine strategy, TME's expansive offerings extend the value of IP beyond online streaming into offline concerts, artist merchandise, and other IP-centric experiences. TME continuously innovates to deliver a seamless experience where users can discover, listen, sing, watch, perform, and connect across diverse scenarios, while unlocking the enduring value of music and audio IP. For more information, please visit ir.tencentmusic.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
Investor Relations Contact
Tencent Music Entertainment Group
[email protected]
+86 (755) 8601-3388 ext. 885034
A public valuation validates Tencent's chip investment while revealing how much strategic scarcity investors are already paying for. Summary
Tencent is simultaneously Enflame’s major shareholder and largest customer.
Tencent Holdings TCEHY, China's gaming, advertising and cloud-computing powerhouse, fell approximately 1.9% to $57.29 Monday as investors weighed the looming market debut of Tencent-backed Enflame. According to Reuters, the loss-making AI-chip developer priced its Shanghai offering at 142.18 yuan per share and expects to raise 6.1 billion yuan, or roughly $908 million.
The deal comes with a towering valuation. Enflame is set to list at 61.8 times 2025 sales—below the multiples exceeding 160 fetched by Chinese rivals Moore Threads and MetaX, but miles above the 25.4-times Nvidia benchmark cited in its filing. Tencent has real skin in the game. It is a major shareholder and Enflame's largest customer, making this far more than another venture-capital bet.
Tencent's latest results showed quarterly capital expenditure rocketing 176% to 52.8 billion yuan as the company poured money into AI infrastructure. Enflame offers a domestic chip alternative as access to advanced foreign hardware tightens, though the close supplier relationship creates concentration risk. Valuation provides a cushion: at $57.29, Tencent trades 17.13% below its GF Value™ estimate of $69.13, pointing to potential upside if that AI spending starts producing bigger profits.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
The daily purchase is small, but cancellation turns recurring buybacks into permanent ownership gains. Summary
Tencent bought 672,000 shares at an average HK$447.02 for cancellation.
Tencent Holdings TCEHY, the Chinese gaming, advertising and financial-technology giant, spent HK$300.4 million repurchasing 672,000 shares Wednesday as the stock climbed 0.8% to $56.77. Tencent paid an average HK$447.02 per share. The message is simple: management still sees enough value to keep buying.
Every share purchased Wednesday will be cancelled. No treasury-stock shuffle. Tencent has now repurchased approximately 41.46 million shares under its current mandate, equal to 0.455% of the original share count. Its second-quarter results explain where the firepower comes from: revenue jumped 11% to RMB204.8 billion, while fintech and business-services sales rose 9% to RMB60.3 billion.
One day's buyback erased only around 0.0074% of outstanding shares. Small move. Bigger pattern. At $56.77, Tencent trades 16.72% below its GF Value™ estimate of $68.17, giving each cancelled share more punch. Now comes the real test: can buybacks consistently outrun employee stock awards and the cash demands of Tencent's AI buildout?
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Tencent (0700.HK) released a preview version of a new open-source AI model aimed at tasks such as software engineering, research and financial analysis, according to its post published on Friday on Hugging Face, a repository of open-source AI models.
The model, called Hy4 preview, uses a "mixture-of-experts" design with 770 billion parameters in total, Tencent said, although only about 49 billion are used for any given text request.
The Chinese technology giant said it plans to integrate the model alongside Tencent products, including CodeBuddy and WorkBuddy.
Tencent added that the early-release model can sometimes take longer than necessary to work through complex questions and may over-verify its own answers.
The release comes at a time when Tencent is ramping up investment in AI in an increasingly crowded market.
It unveiled a large language model called Hunyuan 3.0 in April, its first major release since hiring former OpenAI researcher Yao Shunyu to lead its AI platform development.
Chinese artificial intelligence company DeepSeek has released an experimental multimodal version of its V4 Flash model that can analyze images, screenshots and visual prompts while preserving its text, reasoning and agent capabilities.
DeepSeek says the model, called V4-Flash-Vision-Exp, performs close to Anthropic's Opus 4.8 on multimodal agentic benchmarks. It is available through DeepSeek's API.
The release comes as the Hangzhou-based startup advances preparations for an initial public offering, with a potential filing as soon as this year. DeepSeek is planning a mainland China IPO, with a filing targeted for 2026 that could allow the company to debut publicly in 2027, Bloomberg reported.
The company has started discussions with accounting firms and investment banks as it advances its plans.
DeepSeek is also seeking additional private funding ahead of a potential listing, shortly after completing a reported $7 billion round. The company is in talks with investors for a new round targeting a pre-money valuation of at least 480 billion yuan, or about $71 billion, up from roughly $50 billion in its first external round, which included Tencent Holdings (HKG:0700, OTC:TCEHY) and Contemporary Amperex Technology, Bloomberg reported.
New report outlines how infrastructure efficiency, renewable electricity and AI-enabled innovation can support lower-carbon growth
, /PRNewswire/ -- Tencent (0700.HK) published its Carbon Neutrality Mid-Term Report and launched an accompanying interactive microsite, sharing its progress to date and pathway toward achieving carbon neutrality across its own operations and supply chain by 2030.
The report comes as the rapid growth of artificial intelligence is creating a defining energy challenge for the technology sector. AI workloads are raising rack power demand by up to tenfold, placing new pressure on electricity supply, cooling and infrastructure. At the same time, AI is emerging as a powerful tool for improving efficiency, integrating renewable energy and accelerating low-carbon innovation beyond the technology sector.
The report showcases Tencent's response to the AI-energy challenge: improving the efficiency of computing infrastructure, aligning electricity demand more closely with renewable energy availability, and applying AI and digital technologies to support decarbonization beyond its own operations, while tracking progress toward its 2030 carbon neutrality commitments.
As Tencent Chairman and CEO Ma Huateng writes in the report, "We are applying our digital and AI capabilities to cut emissions within our own infrastructure – and we believe AI holds far greater potential still: to accelerate low-carbon innovation, lift efficiency, and support broader environmental transformation in industries beyond our own."
Redesigning infrastructure for the AI era
One example is T-AIDC, Tencent's next-generation data center architecture for the AI era. AI workloads have increased rack power demand from 6–8 kW to 30–100 kW or more, placing new requirements on power delivery, cooling and system design. T-AIDC addresses these demands through an integrated architecture designed for high-density computing and delivers power-supply efficiency of up to 98%.
Applying AI and innovation beyond our own operations
Beyond its own infrastructure, Tencent is exploring how AI and digital technologies can support emissions reductions across a range of sectors.
In steel production, AI-driven scheduling and digital twin technologies can help plants become more flexible in when and how they use energy, reducing emissions, lowering costs and supporting grid stability. Tencent is also working with partners to better align data center workloads with renewable energy supply through AI-powered scheduling, helping integrate more variable renewable electricity into energy-intensive digital infrastructure.
Tencent is also helping climate technologies move from research to real-world deployment through CarbonX Program, supporting innovation in areas such as carbon removal, carbon utilization and long-duration energy storage. This work is complemented by TanLIVE, Tencent's climate intelligence platform, which helps connect governments, investors and climate-tech stakeholders while improving access to climate solutions, data and investment opportunities.
Delivering progress toward carbon neutrality
Alongside these broader efforts, the report demonstrates Tencent's continued focus on reducing emissions at source through energy efficiency, renewable electricity procurement and low-carbon infrastructure, guided by a carbon-mitigation hierarchy that prioritizes avoiding, reducing and replacing emissions.
That approach is translating into measurable progress. Renewable electricity consumption increased from 22.0% in 2024 to 48.5% in 2025, while owned data centers achieved an 82.9% renewable electricity share. Since announcing its carbon neutrality commitment, Tencent has procured more than 6.5 billion kWh of green electricity.
Sharing progress to advance the conversation
By sharing both its progress and the work behind it, Tencent aims to contribute to a broader conversation about how the technology industry can manage the energy demands of AI while using digital innovation to support the transition to a lower-carbon economy.
Explore the Carbon Neutrality Mid-Term Report and interactive microsite at https://www.tencent.com/climate/
For media queries, please contact: [email protected]
[End]
About Tencent
Tencent is a global technology and entertainment company focused on creating connections and experiences that matter. Founded in 1998, Tencent is driven by its mission to create "Value for Users" and apply "Tech for Good."
Tencent's communication and social services connect more than one billion people around the world, helping them to keep in touch with friends and family, access transportation, pay for daily necessities, and even be entertained. Tencent also develops and publishes some of the world's most popular video games and other high-quality digital content, delivering rich and immersive interactive entertainment experiences. Tencent also offers a range of services such as cloud computing and other enterprise services to support our clients' digital transformation and business growth. Headquartered in Shenzhen, Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since June 2004.
Tencent Holdings Limited (TCEHY) Q2 2026 Earnings Call August 12, 2026 8:00 AM EDT
Company Participants
Wendy Huang - Investor Relations Officer
Huateng Ma - Co-Founder, Chairman & CEO
Chi Ping Lau - President
James Mitchell - Chief Strategy Officer & Senior EVP
Shek Hon Lo - CFO & Senior VP
Conference Call Participants
Robin Zhu - Bernstein Institutional Services LLC, Research Division
Kenneth Fong - UBS Investment Bank, Research Division
Ronald Keung - Goldman Sachs Group, Inc., Research Division
Alicis a Yap - Citigroup Inc., Research Division
Alex Liu - BofA Securities, Research Division
Alex Yao - JPMorgan Chase & Co, Research Division
Gary Yu - Morgan Stanley, Research Division
Presentation
Wendy Huang
Investor Relations Officer
Good day, and good evening. Thank you for standing by. Welcome to Tencent Holdings Limited 2026 Second Quarter Results Announcement Webinar. I'm Wendy Huang from Tencent IR team.
[Operator Instructions] And please be advised that today's webinar is being recorded. Before we start the presentation, we would like to remind you that it includes forward-looking statements, which are underlined by a number of risks and uncertainties and may not be realized in the future for various reasons.
Information about general market conditions is coming from a variety of sources outside of Tencent. This presentation also contains some unaudited non-IFRS financial measures that should be considered in addition to, but not as a substitute for measures of the group's financial performance prepared in accordance with IFRS.
For a detailed discussion of risk factors and non-IFRS measures, please refer to our disclosure documents on the IR section of our website. Let me now introduce the management team on the webinar tonight. Our Chairman and CEO, Pony Ma, will kick off with a short overview.
President, Martin Lau, will provide a strategy review. Chief Strategy Officer, James Mitchell, will provide a business review; and Chief Financial Officer, John Lo, will conclude with financial
Tencent Holdings Limited remains a Buy, with current valuation implying a significant discount to intrinsic value and strong AI-driven growth prospects. TCEHY reported robust YoY revenue growth across core segments, with a notable 21.8% increase in Marketing Services and a 176% jump in CAPEX. Significant balance sheet strength, $82.85 billion in liquidity, and aggressive AI investments position Tencent to capitalize on emerging opportunities.
Čínský internetový gigant Tencent zveřejnil výsledky hospodaření za 2Q. Společnost reportovala výnosy mírně nad očekáváním, čistý zisk naopak nepatrně zaostal. Kapitálové výdaje se meziročně téměř ztrojnásobily kvůli nákupům výpočetní kapacity pro umělou inteligenci a firma se dostala do záporných volných hotovostních toků.
Výsledky společnosti Tencent (TCEHY) za 2Q 2026 2Q 2026 Konsensus 2Q 2026 2Q 2025 Výnosy (mld. CNY) 204,79 202,84 184,50 Čistý zisk (mld. CNY) 56,02 58,36 55,63 Očištěný zisk na akcii (EPS, CNY/akcie) 7,43 -- 6,79 Výsledky Výnosy společnosti meziročně vzrostly o 11 % na 204,79 mld. CNY (30,4 mld. USD).
Výnosy ze služeb s přidanou hodnotou vzrostly o 8 % na 98,4 mld. CNY. Domácí hry přidaly 17 % na 47,3 mld. CNY díky titulům Delta Force, VALORANT PC a MOBILE a Roco Kingdom: World. Výnosy z mezinárodních her naopak kvůli pohybům měnových kurzů klesly o 0,8 % na 18,6 mld. CNY (při konstantních kurzech +4 %), když vyšší výnosy ze hry Wuthering Waves a VALORANT PC vykompenzoval pokles u některých her od Supercellu. Výnosy ze sociálních sítí vzrostly o 0,8 % na 32,5 mld. CNY.
Segmentově největší meziroční nárůst zaznamenaly marketingové služby, a to o 22 % na 43,6 mld. CNY. Firma růst přisuzuje vylepšení svého reklamního modelu poháněného AI.
Výnosy z FinTechu a obchodních služeb stouply o 9 % na 60,3 mld. CNY. U finančních služeb rostly zejména komerční platby, správa majetku a spotřebitelské úvěry, u obchodních služeb pak cloud, kterému pomohla vyšší poptávka po AI službách, mezinárodní expanze a příznivější cenové prostředí.
Výnosy Tencentu ve 2Q dle segmentu
(mld. CNY) Segment Výnosy Konsenzus Meziroční změna Služby s přidanou hodnotou
98,41 98,42 +8 % Sociální sítě
32,5 32,9 +0,8 % Domácí hry 47,3 44,9 +17 % Mezinárodní hry
18,6 20,6 -0,8 % Marketingové služby
43,57 42,35 +22 % FinTech a obchodní služby
60,29 60,27 +9 % Ostatní 2,52 -- +37 % Hrubý zisk zaznamenal meziroční růst o 13 % na 118,4 mld. CNY, hrubá marže se zlepšila o 1 p. b. na 58 %.
Očištěný provozní zisk meziročně rostl 9% tempem na 75,6 mld. CNY, očištěná provozní marže klesla o 0,6 p. b. na 36,9 %. Bez příspěvku nových AI produktů (Hy, Yuanbao, CodeBuddy, WorkBuddy a Xiaowei) by očištěný provozní zisk vzrostl o 19 % na 86,1 mld. CNY a marže by se zvýšila z 39 % na 42 %.
Kapitálové výdaje byly meziročně o 176 % vyšší a činily 52,8 mld. CNY. Odhad byl na úrovni 32,1 mld. CNY.
Volné hotovostní toky (FCF) se dostaly do záporu ve výši 13,8 mld. CNY.
Počet měsíčně aktivních uživatelů (MAU) služeb Weixin a WeChat dosáhl 1,44 mld., což představuje meziroční nárůst o 2 %. Odhad analytiků byl na úrovni 1,42 mld.
Počet placených předplatných služeb s přidanou hodnotou meziročně klesl o 1,9 % na 259 mil., přičemž odhad byl 268,66 mil.
Komentář CEO „Se vstupem do třetího kvartálu letošního roku děláme podstatný pokrok při budování nového Tencentu poháněného umělou inteligencí, a to na úrovni inteligence, aplikací i infrastruktury. Na úrovni inteligence poskytuje produkční verze Hy3 uživatelům široce využívaný model se silným poměrem cena/výkon a je odrazovým můstkem k tomu, aby rodina modelů Hy v budoucnu dosáhla špičkových schopností. Na úrovni aplikací dosahují naše kancelářská AI služba WorkBuddy a nástroj pro kódování CodeBuddy prudkého růstu uživatelů a jsou dnes v Číně jasnými lídry ve svých oborech. Na úrovni infrastruktury jsme výrazně navýšili nákupy výpočetní kapacity, což nám do budoucna umožní přeměnit využívání našich aplikací a modelů v tržby. Zároveň pokračujeme ve zlepšování stávajících služeb, s trvalým růstem výnosů z marketingových služeb, několika úspěšnými nedávno vydanými hrami a rychle rostoucí sledovaností videí na Weixin Video Accounts," uvedl generální ředitel Ma Huateng.
Vývoj akcie Akcie společnosti Tencent se obchodují formou amerických depozitních certifikátů (ADR) s tickerem TCEHY.
Akcie Tencent Holdings (TCEHY) před výsledky na 59,52 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 540,6 P/E 15,2 Vývoj za letošní rok (%) -22,2 Očekávané P/E 13,4 52týdenní minimum (USD) 52,8 Prům. cílová cena (USD) 102,2 52týdenní maximum (USD) 87,7 Dividendový výnos (%) 1,1 Zdroj: Tencent, Bloomberg
Tencent said second-quarter revenue rose 11%. Photo: Agence France-Presse/Getty ImageIt’s not just American artificial-intelligence companies burning through cash as they roll out ever-more advanced models.
Shenzhen, China-based Tencent HK:700, which according to OpenRouter has the second-most used large language model this week, said its capital expenditure surged 176% year-on-year, to 52.8 billion yuan ($7.8 billion), in the second quarter.
About the Author
Steven Goldstein is based in London and responsible for MarketWatch's coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein.
The Tencent logo at the company's headquarters during a government‑organised media trip in Shenzhen, Guangdong province, China, April 17, 2026. REUTERS/Go Nakamura Purchase Licensing Rights, opens new tab
BEIJING, Aug 12 (Reuters) - Tencent Holdings (0700.HK), opens new tab reported an 11% rise in second-quarter revenue on Wednesday, driven by strong advertising sales and steady gaming income, as the Chinese technology giant ramps up AI spending.
For the three months to the end of June, the Shenzhen-based gaming and internet company reported revenue of 204.8 billion yuan ($30.36 billion), in line with analyst estimates of 202.2 billion yuan, according to LSEG data.
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Net profit rose only 0.7% from a year earlier to 56 billion yuan, falling short of analyst expectations of 61.8 billion yuan.
Investors have been focused on whether Tencent's heavy AI spending is starting to generate returns, or merely weighing on margins.
Capital expenditure totalled about 79 billion yuan last year, up from 77 billion yuan in 2024, and the company has signalled AI investment will step up further in the second half of this year.
The results come amid an accelerating AI product push by Tencent, which competes with the likes of ByteDance and Alibaba (9988.HK), opens new tab.
The company has built up a broad portfolio of AI products, including the Yuanbao chatbot and the WorkBuddy office assistant.
Revenue from value-added services, which include Tencent's gaming business, rose 8% to 98.4 billion yuan. Domestic games revenue grew 17% to 47.3 billion yuan supported by titles including "Honor of Kings" and "Delta Force", while international games revenue was down 0.8% to 18.6 billion yuan due to foreign currency movements.
Marketing services revenue climbed 22% to 43.6 billion yuan, as AI upgrades continued to boost advertising and pricing within its Weixin ecosystem, the network that combines messaging, payments and social media, among other services.
Fintech and business services revenue rose 9% to 60.3 billion yuan, with cloud demand for AI-related services remaining a key driver.
In July, Tencent released Hy3, the latest version of its Hunyuan AI model, and last week opened it to users worldwide. It has also been testing an AI assistant inside its WeChat social media app since June.
Capital expenditure in the June quarter was 52.8 billion yuan, compared with 31.9 billion yuan in the first quarter.
($1 = 6.7449 Chinese yuan renminbi)
Reporting by Liam Mo and Eduardo Baptista; Editing by Joe Bavier and Keith Weir
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Tencent posted a beat on second-quarter revenue thanks to an acceleration at its China gaming unit and AI-driven advertising, but its core profit missed analyst expectations.
The Chinese tech giant also reported a rise in capital expenditure in the quarter.
Here's how Tencent did in the second quarter versus LSEG estimates:
Revenue: 204.78 billion Chinese yuan ($30.36 billion) versus 202.17 billion yuan expectedNet profit: 56 billion Chinese yuan versus 61.82 billion yuan expectedRevenue rose 11% year-on-year while profit was up nearly 1%. Tencent said that, stripping out one-time factors and certain non-cash items, its profit was 68.4 billion yuan in the quarter, up 9% versus the same time last year.
Tencent said its domestic games revenue came in at 47.3 billion yuan, up 17% year-on-year, driven by key titles such as Delta Force and Valorant PC and Mobile. That was faster than the 6% growth the division saw in the first quarter of this year, and the same level seen in the second quarter of 2025.
However, revenue at the company's international game revenue fell 0.8% year-on-year due to currency movements, Tencent said. Revenue was up 4% on a constant currency basis.
Tencent is one of the world's largest gaming companies and both domestic and international revenue are watched closely by investors.
Tencent stock was down 26% year-to-date at Wednesday's closing bell in Hong Kong, as the company faces intense competition in China in AI and investors grow jittery about its rising spending. The company also saw a slowdown in gaming growth in the first quarter of the year.
Tencent stock year-to-date.
Ads drive revenue with AI in focusThe company has sought to leverage its massive user base of more than 1.4 billion people for Weixin and WeChat, China's most popular messaging app. In June, Tencent started testing an AI assistant called Xiaowei within WeChat in China. Tencent said on Wednesday that it has started a "small-scale prototype test" for Xiaowei in recent weeks.
Last month, Tencent also launched Hy3, its latest AI model, which it has since expanded globally.
But Tencent is facing a slew of competition in the AI space, from established titans like Alibaba to newer entrants like DeepSeek and Moonshot AI, the developer of the Kimi models.
Still, the company said capital expenditures for the June quarter rose 65% to 52.8 billion yuan from the previous quarter, as it continues to ramp up buying and building computing infrastructure to monetize its AI models.
"At the infrastructure level, we substantially stepped up our procurement of compute, which will enable us to convert usage of our applications and models into revenue going forward," Tencent said.
Another driver of growth in the quarter was Tencent's marketing services, aided by AI. Revenue at the division rose 22% year-over-year to 43.6 billion yuan, supported by "enhancements" to Tencent's AI-driven ad recommendation model, the company said. This feature uses AI to decide what ads to show users on Tencent's platforms like WeChat.
Overall, Tencent posted rising gross profit at all of its main divisions, as it looks to satisfy investors that its investments are paying off.
, /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading all-in-one music and audio entertainment platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights
Total revenues were RMB8.93 billion (US$1.32 billion), representing a 5.8% year-over-year increase, primarily due to strong growth in revenues from music related services[1]. Revenues from music related services[1] were RMB7.61 billion (US$1.12 billion), representing 11.0% year-over-year growth, driven by solid growth in revenues from marketing and consumption services[2], such as offline performance related services, as well as revenues from membership services[3]. Revenues from membership services[3] were RMB4.79 billion (US$706 million), representing 8.1% year-over-year growth. On an IFRS basis: Net profit attributable to equity holders of the Company was RMB2.47 billion (US$364 million), compared with RMB2.41 billion in the same period of 2025. Diluted earnings per ADS was RMB1.57 (US$0.23), compared with RMB1.55 in the same period of 2025. On a non-IFRS basis: Adjusted EBITDA[4] was RMB3.25 billion (US$480 million), representing 5.2% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company[4] was RMB2.69 billion (US$396 million), representing 4.4% year-over-year growth. Non-IFRS diluted earnings per ADS was RMB1.70 (US$0.25), up from RMB1.66 in the same period of 2025. Total cash, cash equivalents, term deposits and short-term investments as of June 30, 2026 were RMB44.22 billion (US$6.52 billion). In the second quarter of 2026, the Company repurchased 43.5 million ADSs with cash for an aggregate consideration of approximately US$400.0 million. Mr. Cussion Pang, Executive Chairman of TME, commented, "Our second-quarter results reflect the continued strength of our content-and-platform strategy. Concerts, merchandise, and other IP-driven experiences drove another quarter of solid growth in our marketing and consumption services, underscoring our ability to unlock greater value from premium music IP. Our expansion into digital audio through the integration of Ximalaya broadened our reach and enriched our ecosystem. As the industry evolves, we continue to champion copyright protection, foster a healthy ecosystem, and safeguard the value of creative work."
Mr. Ross Liang, CEO of TME, continued, "Amid a rapidly evolving market, we remain steadfast in building an ecosystem where our users can discover, connect, and be inspired through music and audio experiences. Our focus on differentiated content and a vibrant community continues to deepen engagement with our core users, and SVIP membership continues to grow. The addition of Ximalaya is an exciting milestone that will allow us to deliver an even richer audio experience and serve our users more effectively. Together, we are shaping the future of music and audio entertainment and unlocking long-term growth."
Second Quarter 2026 Operational Highlights
Products & Services – Elevated the music experience through continuous product innovation, ecosystem integration, and thoughtful AI application, to expand user reach and deepen engagement.
Enhanced the user experience through a more seamless discovery-to-playback journey, introducing vertical swipe-based discovery, video feeds, and expanded freemium access to drive higher daily time spent per user. Expanded distribution and user acquisition through deeper integration with the broader Tencent ecosystem. We strengthened music content distribution through Weixin Video Accounts and improved click-through and conversion to our apps. We also collaborated with Weixin Pay to drive traffic to our lightweight apps, such as Bodian Music and Kugou Concept, which cater to users seeking a simpler music experience. Harnessed AI agents to make music discovery more intuitive and personalized. We recently integrated with Weixin XiaoWei, and are pleased that by tapping into Weixin's massive user base, more users can discover songs, generate playlists, stream music with easy commands and instantly share favorite tracks with friends. Within QQ Music and Kugou Music, our upgraded AI agents now act as personal DJs, creating personalized playlists in real time that match what users want to hear in the moment. IP-Centric Content Ecosystem – Deepened strategic partnerships, strengthened proprietary IP capabilities, and expanded presence in digital audio to reinforce long-term IP value.
Expanded strategic partnerships beyond traditional music licensing to unlock greater value. 1) Deepened our partnerships with Dream Music Group, securing first-release for its top artists while expanding into new areas of collaborations including content co-creation, physical offerings, and offline experiences. 2) To enrich how users experience music beyond audio, we partnered with Huace Film & TV, RUYI FILM, and Zhejiang Satellite TV to bring original soundtracks and popular music variety shows to our platform, creating a more immersive connection between music and visual entertainment. Advanced our proprietary content creation capabilities and deepened artist development efforts to support growth of IP-driven experiences. 1) Produced hit releases for leading artists and major IPs, including Zhou Shen's Blaze into Bloom, Liu Yuning's Borrow a Little Light from Ordinary Days, and the theme song for the hit animated film All Wishes Come True!. 2) Following rapper Zhou Yan's (GAI) successful EVOLUTION tour in Asia, we elevated his latest tour, REAL G, to stadium scale. We also supported renowned actor and singer Steven Zhang's first-ever arena tour, New Journey. 3) Made a strategic investment in THE BLACK LABEL to help artists deepen connection with Chinese audiences. The addition of Ximalaya strengthened our position as a leading music and audio ecosystem. Its extensive content library broadened our user reach and enriched our SVIP offering. Meanwhile, we have begun the backend integration journey, laying the foundation for operational efficiency gains over time. Holistic IP Value Creation – Extended the value of premium IPs beyond streaming through digital and physical experiences, deepening fan engagement and driving diversified growth.
Continued to enhance our SVIP offering with differentiated IP-driven benefits, driving growth in user scale, engagement, and consumption of premium ancillary experiences. New benefits, including digital albums and tailored gift packages for artists and groups such as RENJUN, Lay Zhang, aespa, and RIIZE[5], deepened fan engagement. Expanded music IP into more immersive offline experiences, contributing to strong growth in concert-related revenue. 1) Hosted three fan meetings in Macau, China for SM Entertainment's trainee group, SMTR25, attracting tens of thousands of attendees and generating strong merchandise sales. 2) Building on last year's success, we scaled up our proprietary international IP event, TIMA, expanding to a much larger venue to welcome more fans amid growing enthusiasm. Extended the value of music IP through end-to-end IP merchandise development and distribution. Physical releases from KUN, Chen Chusheng, Eazin Poe, and Zhou Shen were met with strong demand, highlighting fans' growing appetite for premium music collectibles. Second Quarter 2026 Financial Review
Total revenues increased by RMB491 million, or 5.8%, to RMB8.93 billion (US$1.32 billion) from RMB8.44 billion in the same period of 2025. The revenue generated from Ximalaya was RMB407 million (US$60 million)[6].
Revenues from music related services increased by 11.0% to RMB7.61 billion (US$1.12 billion), compared with RMB6.85 billion in the same period of 2025. The increase was driven by solid growth in revenues from marketing and consumption services, such as offline performance related services, as well as revenues from membership services. Revenues from membership services were RMB4.79 billion (US$706 million), representing 8.1% year-over-year growth, compared with RMB4.43 billion in the same period of 2025. The consolidation of Ximalaya contributed to the increase of our membership revenues. Additionally, our SVIP membership continued to expand and contributed to our membership revenue growth. Revenues from offline performances related services achieved robust year-over-year growth as we successfully staged several concerts for our strategically collaborated artists. Revenues from social entertainment services and others decreased by 16.4% to RMB1.33 billion (US$196 million) from RMB1.59 billion in the same period of 2025. Cost of revenues increased by 6.2% year-over-year to RMB4.98 billion (US$735 million), mainly due to increased costs related to offline performances, and higher long-form audio content costs due to expansion of content library. Meanwhile, revenue sharing fees decreased, resulting from declines in both revenue sharing ratio and revenues from social entertainment services.
Gross margin was 44.2%, compared with 44.4% in the same period of 2025. The consolidation of Ximalaya had a positive impact to our gross margin of this quarter.
Total operating expenses increased by 12.0% year-over-year to RMB1.30 billion (US$191 million). Operating expenses as a percentage of total revenues increased to 14.5% from 13.7% in the same period of 2025. The increase was primarily due to the consolidation of Ximalaya, including the amortization of intangible assets arising from the acquisition.
On an IFRS basis, net profit and net profit attributable to equity holders of the Company for the second quarter of 2026 were RMB2.55 billion (US$376 million) and RMB2.47 billion (US$364 million), respectively. Basic and diluted earnings per American Depositary Shares ("ADS") for the second quarter of 2026 were RMB1.58 (US$0.23) and RMB1.57 (US$0.23), respectively. The Company had weighted averages of 1.56 billion basic and 1.58 billion diluted ADSs outstanding, respectively. Each ADS represents two of the Company's Class A ordinary shares.
On a non-IFRS basis, adjusted EBITDA for the second quarter of 2026 were RMB3.25 billion (US$480 million). Non-IFRS net profit was RMB2.78 billion (US$410 million) and non-IFRS net profit attributable to equity holders of the Company was RMB2.69 billion (US$396 million). Non-IFRS basic and diluted earnings per ADS were RMB1.72 (US$0.25) and RMB1.70 (US$0.25), respectively. Please refer to the section in this press release titled "Non-IFRS Financial Measures" for details.
As of June 30, 2026, the combined balance of the Company's cash, cash equivalents, term deposits and short-term investments amounted to RMB44.22 billion (US$6.52 billion), compared with RMB41.00 billion as of March 31, 2026.
Share Repurchase Program
Under our previously announced share repurchase programs, during the three months ended June 30, 2026, we repurchased a total of 43.5 million ADSs in the open market with cash for an aggregate consideration of approximately US$400.0 million at an average price of US$9.2 per ADS.
Environmental, Social, and Governance ("ESG")
We continued to enhance tailored music experiences for users of all ages. This quarter, we enhanced Youth Mode across our core products and introduced a curated, age-appropriate content library for younger users to safely discover and enjoy music.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.
Non-IFRS Financial Measures
The Company uses non-IFRS financial measures for the period, including non-IFRS net profit, adjusted EBITDA(inc.SBC) and adjusted EBITDA, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS financial measures help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that the Company includes in its profit for the period. TME believes that non-IFRS financial measures for the period provide useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
Non-IFRS financial measures for the period should not be considered in isolation or construed as an alternative to operating profit, net profit for the period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS financial measures for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS financial measures for the period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. TME encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
Adjusted EBITDA(inc.SBC) for the period represents net profit for the period excluding income tax expense, finance cost, share of profit/loss of associates and joint ventures, other gains/losses, interest income, depreciation of property, plant and equipment and right-of-use assets, and amortization of intangible assets.
Adjusted EBITDA for the period represents net profit for the period excluding income tax expense, finance cost, share of profit/loss of associates and joint ventures, other gains/losses, interest income, depreciation of property, plant and equipment and right-of-use assets, amortization of intangible assets, and share-based compensation expenses.
Non-IFRS net profit for the period represents profit for the period excluding amortization of intangible and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments and related income tax effects.
Please see the "Unaudited Non-IFRS Financial Measures" included in this press release for a full reconciliation of adjusted EBITDA(inc.SBC), adjusted EBITDA and non-IFRS net profit for the period to its net profit for the period.
[1] Starting from the first quarter of 2026, "online music services" has been renamed to "music related services" to better reflect the nature of our businesses, including long-form audio. Such change does not affect the amounts of our historical revenue or its accounting treatment.
[2] As part of music related services, marketing and consumption services primarily consist of advertising, offline performance related services and artist-related merchandise sales.
[3] As part of music related services, membership services primarily consist of membership fees paid for membership benefits and privileges, including access to music and audio content, and other benefits and privileges within music related services.
[4] See the sections entitled "Non-IFRS Financial Measures" and "Unaudited Non-IFRS Financial Measures" for more information about the non-IFRS measures referred to within this announcement.
[5] Names grouped by artists and bands, sorted in alphabetical order by family names.
[6] On May 18, 2026, the Company completed the acquisition of Ximalaya. Its financial results from the acquisition date have been included in the Company's consolidated financial statements for the second quarter of 2026
About Tencent Music Entertainment
Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading all-in-one music and audio entertainment platform in China, operating the country's highly popular and innovative music and audio apps: QQ Music, Kugou Music, Kuwo Music, WeSing and Ximalaya. TME's mission is to create endless possibilities with music and technology. Powered by its content-and-platform dual-engine strategy, TME's expansive offerings extend the value of IP beyond online streaming into offline concerts, artist merchandise, and other IP-centric experiences. TME continuously innovates to deliver a seamless experience where users can discover, listen, sing, watch, perform, and connect across diverse scenarios, while unlocking the enduring value of music and audio IP. For more information, please visit ir.tencentmusic.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
Investor Relations Contact
Tencent Music Entertainment Group
[email protected]
+86 (755) 8601-3388 ext. 885034
TENCENT MUSIC ENTERTAINMENT GROUP
CONSOLIDATED INCOME STATEMENTS
Three Months Ended June 30
Six Months Ended June 30
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
(in millions, except per share data)
(in millions, except per share data)
Revenues
Music related services*
6,854
7,605
1,121
12,658
14,119
2,081
Social entertainment services and others
1,588
1,328
196
3,140
2,709
399
8,442
8,933
1,317
15,798
16,828
2,480
Cost of revenues
(4,693)
(4,984)
(735)
(8,807)
(9,333)
(1,376)
Gross profit
3,749
3,949
582
6,991
7,495
1,105
Selling and marketing expenses
(216)
(236)
(35)
(415)
(507)
(75)
General and administrative expenses
(940)
(1,059)
(156)
(1,884)
(1,999)
(295)
Total operating expenses
(1,156)
(1,295)
(191)
(2,299)
(2,506)
(369)
Interest income
254
229
34
551
475
70
Other gains, net
131
152
22
2,571
218
32
Operating profit
2,978
3,035
447
7,814
5,682
837
Share of net profit of investments accounted
for using equity method
16
37
5
39
30
4
Finance cost
(12)
(5)
(1)
(37)
(51)
(8)
Profit before income tax
2,982
3,067
452
7,816
5,661
834
Income tax expense
(515)
(514)
(76)
(961)
(971)
(143)
Profit for the period
2,467
2,553
376
6,855
4,690
691
Attributable to:
Equity holders of the Company
2,409
2,471
364
6,700
4,562
672
Non-controlling interests
58
82
12
155
128
19
Earnings per share for Class A and Class B
ordinary shares
Basic
0.79
0.79
0.12
2.19
1.47
0.22
Diluted
0.78
0.78
0.12
2.16
1.46
0.21
Earnings per ADS (2 Class A shares equal to 1 ADS)
Basic
1.57
1.58
0.23
4.38
2.94
0.43
Diluted
1.55
1.57
0.23
4.32
2.91
0.43
Shares used in earnings per Class A and Class B
ordinary share computation:
Basic
3,059,783,073
3,128,328,814
3,128,328,814
3,057,167,291
3,104,964,331
3,104,964,331
Diluted
3,102,937,547
3,151,215,721
3,151,215,721
3,098,531,942
3,132,392,396
3,132,392,396
ADS used in earnings per ADS computation
Basic
1,529,891,537
1,564,164,407
1,564,164,407
1,528,583,645
1,552,482,166
1,552,482,166
Diluted
1,551,468,773
1,575,607,860
1,575,607,860
1,549,265,971
1,566,196,198
1,566,196,198
* Starting from the first quarter of 2026, "online music services" has been renamed to "music related services" to better reflect the nature of our businesses, including long-form
audio. Such change does not affect the amounts of our historical revenue or its accounting treatment.
TENCENT MUSIC ENTERTAINMENT GROUP
REVENUES FROM MUSIC RELATED SERVICES
Three Months Ended June 30
Six Months Ended June 30
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
(in millions)
(in millions)
Revenues from music related services
Membership services*
4,434
4,792
706
8,718
9,360
1,379
Marketing and consumption services**
2,420
2,813
415
3,940
4,759
701
6,854
7,605
1,121
12,658
14,119
2,081
*As part of music related services, membership services primarily consist of membership fees paid for membership benefits and privileges, including access to music and audio content, and
other benefits and privileges within music related services.
**As part of music related services, marketing and consumption services primarily consist of advertising, offline performance related services and artist-related merchandise sales.
TENCENT MUSIC ENTERTAINMENT GROUP
UNAUDITED NON-IFRS FINANCIAL MEASURES
Three Months Ended June 30
Six Months Ended June 30
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
(in millions, except per share data)
(in millions, except per share data)
Profit for the period
2,467
2,553
376
6,855
4,690
691
Adjustments:
Income tax expense
515
514
76
961
971
143
Finance cost
12
5
1
37
51
8
Share of net profit of investments accounted for
using equity method
(16)
(37)
(5)
(39)
(30)
(4)
Operating profit
2,978
3,035
447
7,814
5,682
837
Other gains, net
(131)
(152)
(22)
(2,571)
(218)
(32)
Interest income
(254)
(229)
(34)
(551)
(475)
(70)
Depreciation of property, plant and equipment and
right-of-use assets
40
45
7
78
80
12
Amortisation of intangible assets
314
379
56
589
677
100
Adjusted EBITDA(inc. SBC)
2,947
3,078
454
5,359
5,746
847
Share-based compensation
147
176
26
297
339
50
Adjusted EBITDA
3,094
3,254
480
5,656
6,085
897
Profit for the period
2,467
2,553
376
6,855
4,690
691
Adjustments:
Amortization of intangible and other assets arising from
business acquisitions or combinations*
89
157
23
194
246
36
Share-based compensation
147
176
26
308
339
50
Gains from investments**
(2)
(28)
(4)
(2,377)
(30)
(4)
Income tax effects***
(61)
(77)
(11)
(114)
(131)
(19)
Non-IFRS Net Profit
2,640
2,781
410
4,866
5,114
754
Attributable to:
Equity holders of the Company
2,574
2,686
396
4,698
4,959
731
Non-controlling interests
66
95
14
168
155
23
Earnings per share for Class A and Class B
ordinary shares
Basic
0.84
0.86
0.13
1.54
1.60
0.24
Diluted
0.83
0.85
0.13
1.52
1.58
0.23
Earnings per ADS (2 Class A shares equal to 1 ADS)
Basic
1.68
1.72
0.25
3.07
3.19
0.47
Diluted
1.66
1.70
0.25
3.03
3.17
0.47
Shares used in earnings per Class A and Class B
ordinary share computation:
Basic
3,059,783,073
3,128,328,814
3,128,328,814
3,057,167,291
3,104,964,331
3,104,964,331
Diluted
3,102,937,547
3,151,215,721
3,151,215,721
3,098,531,942
3,132,392,396
3,132,392,396
ADS used in earnings per ADS computation
Basic
1,529,891,537
1,564,164,407
1,564,164,407
1,528,583,645
1,552,482,166
1,552,482,166
Diluted
1,551,468,773
1,575,607,860
1,575,607,860
1,549,265,971
1,566,196,198
1,566,196,198
* Represents the amortization of identifiable assets, including intangible assets such as domain name, trademark, copyrights, supplier resources, corporate customer relationships and non-compete
agreement etc., and fair value adjustment on music content (i.e., signed contracts obtained for the rights to access to the music contents for which the amount was amortized over the contract
period), resulting from business acquisitions or combination.
** Including the net gains/losses on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments, other expenses in relation to
equity transactions of investments and the fair value changes of consideration liabilities related to the acquisition of Ximalaya.
*** Represents the income tax effects of Non-IFRS adjustments.
TENCENT MUSIC ENTERTAINMENT GROUP
CONSOLIDATED BALANCE SHEETS
As at December 31, 2025
As at June 30, 2026
RMB
RMB
US$
Audited
Unaudited
Unaudited
(in millions)
ASSETS
Non-current assets
Property, plant and equipment
1,201
1,540
227
Land use rights
2,290
2,254
332
Right-of-use assets
287
322
47
Intangible assets
2,899
5,895
869
Goodwill
20,521
29,757
4,386
Investments accounted for using equity method
1,659
2,691
397
Financial assets at fair value through other comprehensive income
26,231
19,147
2,822
Other investments
303
934
138
Prepayments, deposits and other assets
365
445
66
Deferred tax assets
498
633
93
Term deposits
13,810
13,640
2,010
70,064
77,258
11,386
Current assets
Inventories
41
98
14
Accounts receivable
3,903
4,184
617
Prepayments, deposits and other assets
4,183
4,745
699
Other investments
83
72
11
Short-term investments
-
123
18
Term deposits
15,763
6,761
996
Restricted Cash
15
8
1
Cash and cash equivalents
8,470
23,698
3,493
32,458
39,689
5,849
Total assets
102,522
116,947
17,236
EQUITY
Equity attributable to equity holders of the Company
Share capital
2
2
0
Additional paid-in capital
29,919
34,933
5,148
Shares held for share award schemes
(801)
(870)
(128)
Treasury shares
(664)
(3,389)
(499)
Other reserves
22,450
16,478
2,429
Retained earnings
29,381
31,118
4,586
80,287
78,272
11,536
Non-controlling interests
2,763
2,801
413
Total equity
83,050
81,073
11,949
LIABILITIES
Non-current liabilities
Borrowings
-
7,142
1,053
Notes payables
3,497
3,390
500
Other payables and other liabilities
379
468
69
Deferred tax liabilities
504
1,462
215
Lease liabilities
200
218
32
Deferred revenue
303
447
66
4,883
13,127
1,935
Current liabilities
Accounts payable
6,284
6,716
990
Other payables and other liabilities
3,558
4,451
656
Borrowings
-
5,997
884
Current tax liabilities
1,092
999
147
Lease liabilities
116
137
20
Deferred revenue
3,539
4,447
655
14,589
22,747
3,352
Total liabilities
19,472
35,874
5,287
Total equity and liabilities
102,522
116,947
17,236
TENCENT MUSIC ENTERTAINMENT GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended June 30
Six Months Ended June 30
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
(in millions)
(in millions)
Net cash provided by operating activities
1,638
2,864
422
4,157
5,196
766
Net cash (used in)/provided by investing activities
(633)
(3,718)
(548)
(3,854)
2,932
432
Net cash (used in)/provided by financing activities
(2,056)
6,262
923
(2,512)
7,273
1,072
Net (decrease)/increase in cash and cash equivalents
(1,051)
5,408
797
(2,209)
15,401
2,270
Cash and cash equivalents at beginning of the period
Tencent (OTCMKTS:TCEHY – Get Free Report) and Kuaishou Technology (OTCMKTS:KUASF – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Analyst Ratings This is a summary of current ratings and target prices for Tencent and Kuaishou Technology, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Tencent 0 2 2 0 2.50 Kuaishou Technology 0 0 0 0 0.00 Tencent presently has a consensus price target of $106.00, indicating a potential upside of 69.38%. Kuaishou Technology has a consensus price target of $5.00, indicating a potential downside of 3.91%. Given Tencent’s stronger consensus rating and higher probable upside, research analysts plainly believe Tencent is more favorable than Kuaishou Technology.
Earnings & Valuation This table compares Tencent and Kuaishou Technology”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Tencent $104.58 billion 5.44 $31.28 billion $3.58 17.48 Kuaishou Technology N/A N/A N/A N/A N/A Tencent has higher revenue and earnings than Kuaishou Technology.
Institutional & Insider Ownership 0.0% of Tencent shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability This table compares Tencent and Kuaishou Technology’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Tencent 30.60% 19.42% 11.68% Kuaishou Technology N/A N/A N/A Summary Tencent beats Kuaishou Technology on 8 of the 8 factors compared between the two stocks.
About Tencent (Get Free Report)
Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People's Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. The company's consumers business provides communication and services, such as instant messaging and social network; digital content including online games, videos, live streaming, news, music, and literature; fintech services, which includes mobile payment, wealth management, loans, and securities trading; and various tools, such as network security management, browser, navigation, application management, email, etc. Its enterprise business comprises marketing solutions, which offers digital tools including user insight, creative management, placement strategy, and digital assets management; and cloud services, such as cloud computing, big data analytics, artificial intelligence, Internet of Things, security and other technologies for financial services, education, healthcare, retail, industry, transport, energy, and radio & television application. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.
About Kuaishou Technology (Get Free Report)
Kuaishou Technology, an investment holding company, provides live streaming, online marketing, and other services mainly in the People's Republic of China. It offers Kuaishou Flagship, a short video and content based social networking platform; Kuaishou Express; Kuaishou Concept; Yitian Camera, an app to create photographs, videos, and vlogs; Kmovie, a shooting, editing, and production tool; and AcFun, a video sharing website. The company also develops and sells entertainment, online marketing services, e-commerce, online games, online knowledge-sharing, and others. In addition, it develops software, hardware, and network technology; and offers programming and advertising, internet information, and multimedia information technology services, as well as provides technology development, promotion, and other services. Kuaishou Technology was founded in 2011 and is headquartered in Beijing, China.
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SummaryTencent is rated Hold, with a $76/share target, reflecting a balanced outlook ahead of 2Q26 earnings.We see AI ecosystem transformation as a strategic positive, but lack of clear AI monetization and gaming innovation remain key concerns.Gaming momentum is supported by top titles like Honor of Kings and Delta Force, while fintech faces macro-driven headwinds.With TCEHY shares at a 5-year low P/E, positive AI or gaming catalysts could drive upward revisions and share price recovery. Robert Way/iStock Editorial via Getty Images
We preview Tencent’s (TCEHY) upcoming 2Q26 earnings results, which are due out next month. Heading into the print, we are cautiously optimistic given that we see the upcoming quarter is well-balanced with both puts and
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Chinese artificial intelligence company DeepSeek has begun preparations for an initial public offering and could file listing documents as soon as this year, according to a Bloomberg report published on Tuesday.
The Hangzhou-based AI startup is planning a mainland China IPO, with a potential filing targeted for 2026 that could allow the company to debut publicly in 2027, Bloomberg reported, citing people familiar with the matter.
DeepSeek has started discussions with accounting firms and investment banks as it advances its IPO plans, according to the report.
The company is also seeking additional private funding ahead of a potential listing, shortly after completing a reported $7 billion financing round. Bloomberg reported that DeepSeek has begun talks with prospective investors for a new funding round targeting a pre-money valuation of at least 480 billion yuan, or about $71 billion.
That valuation would represent an increase from the approximately $50 billion valuation assigned to DeepSeek during its first external financing round, which closed in early June with participation from investors including Tencent Holdings (HKG:0700, OTC:TCEHY) and Contemporary Amperex Technology Co., according to Bloomberg.
DeepSeek is seeking to raise at least 10 billion yuan in additional capital, though the final amount could be significantly higher depending on investor interest, the report said.
The IPO timeline and fundraising discussions remain subject to change and could be affected by market conditions and the company’s future performance, according to the report.
Bloomberg also reported that DeepSeek founder Liang Wenfeng has become one of the world’s wealthiest AI entrepreneurs, with his net worth reaching about $36 billion.
A logo of Tencent at an exhibition center during organized media tour in Hohhot, Inner Mongolia Autonomous Region, China, June 11, 2026. REUTERS/Maxim Shemetov Purchase Licensing Rights, opens new tab
CompaniesSINGAPORE, July 9 (Reuters) - Chinese gaming and internet company Tencent (0700.HK), opens new tab is in talks to become Manus' largest shareholder as investors seek alternatives after Beijing ordered Meta (META.O), opens new tab to unwind its $2 billion acquisition of the AI startup, two people with knowledge of the matter said on Friday.
The Financial Times first reported Tencent's talks earlier in the day.
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Tencent, together with Manus' original investors, including ZhenFund and HSG, are planning to buy the company back from Meta for no less than $2 billion, said one of the sources and a third person briefed on the matter.
Tencent, Manus, Meta and the two investment firms did not immediately respond to Reuters requests for comment.
Reporting by Fanny Potkin and Kane Wu in Singapore and Preetika Parashuraman in Bengaluru; Editing by Sherry Jacob-Phillips and Muralikumar Anantharaman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Kane Wu covers M&A, private equity, venture capital and investment banks in Asia. She tracks the region's most high-profile deals, fundraisings as well as investment trends amidst geopolitical, macroeconomic and regulatory changes. She was nominated for a SOPA Excellence in Business Reporting award for coverage of China regulatory crackdown in 2021. Prior to Reuters, she worked at the Wall Street Journal and also wrote about Asia's loan market for Thomson Reuters Basis Point. She is based in Hong Kong.
Nvidia (NVDA) and Advanced Micro Devices (AMD) could face increasing competition in China as businesses plan to allocate a larger share of their artificial inte
The Tencent logo at the company's headquarters during a government‑organised media trip in Shenzhen, Guangdong province, China, April 17, 2026. REUTERS/Go Nakamura Purchase Licensing Rights, opens new tab
SINGAPORE, July 6 (Reuters) - Tencent Mobility, a unit of Tencent Holdings (0700.HK), opens new tab, is seeking to raise up to $1.55 billion by selling shares in Chinese short-video company Kuaishou Technology (1024.HK), opens new tab, according to a term sheet seen by Reuters on Monday.
Here are more details from the term sheet:
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The Tencent unit is offering about 273 million Kuaishou Class B shares at HK$43.15 ($5.50) to HK $44.53 each. The range values the sale at about $1.50 billion to $1.55 billion.
The offer price represents a discount of about 3.2% to 6.2% to Kuaishou's last close of HK$46.00 on Monday.
The sale is fully secondary, meaning Kuaishou will not receive any money from the deal. Tencent Mobility will receive the proceeds.
The deal is expected to price on Monday, trade on Tuesday and settle on Thursday.
Kuaishou runs one of China's major short-video and livestreaming platforms, according to its website.
Tencent and Kuaishou did not immediately respond to Reuters requests for comment sent outside regular business hours.
($1 = 7.8428 Hong Kong dollars)
Reporting by Yantoultra Ngui; Editing by Joe Bavier
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Yantoultra Ngui is the Southeast Asia Deals Correspondent of Reuters in Singapore, covering M&A and capital market activities in a region that is fast emerging as one of the world’s biggest economies. He previously was a reporter at Bloomberg and The Wall Street Journal (WSJ). Notably, he was part of WSJ's team that covered the financial scandal at Malaysian state fund 1MDB, and that won SOPA Excellence in Breaking News award for the coverage of the assassination of Kim Jong Nam, the half-brother of North Korea's leader Kim Jong Un, in Malaysia in 2018. Yantoultra graduated with an MBA in Finance from Universiti Putra Malaysia (UPM) in 2010.
Meta and Snap rolled out new smart glasses last month, the latest sign that the industry is racing to put a camera and an AI assistant onto users’ faces. As the fast-growing market heats up, upstarts like Even Realities are muscling in on the giants.
Even Realities, a three-year-old Shenzhen-headquartered startup, has raised $150 million in a pre-Series B round led by Meituan and previous backer Tencent; the round valued the startup at $1 billion valuation. Founder and CEO Will Wang told TechCrunch that while rivals chase camera-equipped devices built around content capture and AI, his company is betting on display-first glasses that beam information straight into the wearer’s line of sight without giving up privacy.
Even’s earlier backers are mostly high-profile China names — Hillhouse, Sequoia China, and Northern Light Venture Capital.
Even was started by ex-Apple engineers in 2023. CEO Wang worked on the Apple Watch and iPhone; other co-founders came from tech, and two came from luxury eyewear companies, including Lindberg. The startup moved quickly, launching its first product, the G1, in 2024 as what Wang calls the lightest waveguide smart glasses then on the market.
Even blew past its own 10,000-unit target to become the first company in the category to sell more than 10,000 pairs, according to the company CEO. It raised money faster than expected, and swelled from 30–40 staff in 2024 to 300–400 today.
The startup’s latest flagship, the G2, hit the market last November and skips the camera entirely. Instead, a heads-up display built into the frames feeds information to the wearer, controlled by a companion ring, the Even R1, that users tap and swipe to navigate.
Removing the camera is an important part of Even’s privacy philosophy, though not the entire story, Wang continued. Smart glasses, he said, are probably the most personal computing device people will ever wear. Worn on the face all day, they have to feel comfortable to both the wearer and those around them, so privacy is designed into both the hardware and the software. Voice features like translation transcribe audio into text rather than storing recordings; user data is encrypted, and the infrastructure is built to meet Europe’s strict privacy standards, Wang added.
Even’s power users lean hard on Conversate, a copilot that reads a conversation in real time, explaining unfamiliar jargon or feeding follow-ups on the fly, then syncing a summary to their phone.
Still, Even has invested most heavily in optics (the display and overall optical performance), which Wang says is what separates smart glasses from other consumer electronics.
“With a phone or a watch, the display is just a conventional OLED or LCD screen. Smart glasses are the first product category to rely on optical displays, which require an entirely different technology stack; you have to design the microchip, the optics, and the waveguide together. That’s where we’ve invested the most,” Wang said.
The company developed a proprietary optical technology called Even HAO, or Holistic Adaptive Optics, an end-to-end design that integrates the microchip, waveguide and prescription support from the start, rather than combining components designed separately.
More than half of Even’s users sit in the U.S. — its fastest-growing market — and so does the bulk of its developer community. The company doesn’t sell in China yet, even though it manufactures there across several factories; its main markets are the U.S., Japan, South Korea, the Middle East, and Europe. “The demand there is significant, so we want to make sure we’re prepared first,” Wang said.
Even sells near the top of the category on price and still moves real volume, making it a profitable player in the space, Wang said. “Most of our customers are male professionals between 30 and 50 years old. We ran a survey and found that about a third of our users are company executives,” he added. The frames retail for $599 before tax; prescription lenses or the ring tack on another $200–$300, pushing the average order to roughly $1,000.
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Kate Park is a reporter at TechCrunch, with a focus on technology, startups and venture capital in Asia. She previously was a financial journalist at Mergermarket covering M&A, private equity and venture capital.
The logo of online video service operator Kuaishou Technology is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. Picture... Purchase Licensing Rights, opens new tab Read more
SummaryCompaniesKuaishou stake in Kling AI dilutes to about 68%Funding capped at 20.45 billion yuanKuaishou shares end flat on Friday after rising as much as 6.9%July 2 (Reuters) - China's Kuaishou Technology (1024.HK), opens new tab said on Thursday a group of investors including Alibaba and Tencent will inject over 19 billion yuan ($2.80 billion) in Kling AI, while valuing the popular AI video arm at $15 billion on a pre-money basis.
The fundraising underscores investors' appetite for China's fast-growing AI sector, which continues to attract billions of dollars in fresh capital. Technology companies have raised a total of $3.1 billion from stock market listings in China this year to mid-June, more than five times the amount raised last year.
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The fundraising for one of China's most popular video-generating services allows Kling AI to bring an additional investor within the next two months, and is capped at 20.45 billion yuan.
Following the capital injection, Kuaishou's stake in Kling AI will be diluted to about 68% from 100%.
Heavyweights such as Alibaba (9988.HK), opens new tab, Tencent (0700.HK), opens new tab and Baidu (9888.HK), opens new tab have agreed to take stakes in Kling AI, which generated revenue of 650 million yuan in the March quarter, opens new tab, more than quadrupling from a year earlier.
While the pre-money valuation came as no surprise, Citi analysts highlighted the "impressive" roster of investors, adding that all eyes will now turn to Kling AI's upcoming upgrade.
Shares of Kuaishou jumped as much as 6.9% on Friday before shedding all of it to end largely unchanged.
Kuaishou acknowledged exploring a restructuring of Kling AI in May following media reports of a looming spin-off, but maintained discussions were in their infancy.
($1 = 6.7779 Chinese yuan renminbi)
Reporting by Sneha Kumar and Jasmeen Ara Shaikh in Bengaluru; Editing by Vijay Kishore and Eileen Soreng
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Kuaishou Technology shares rose nearly 7% Friday before trimming gains, after the company announced a capital injection of nearly $2.8 billion into its artificial intelligence subsidiary, Kling AI, with backing from tech giant Tencent.
The Beijing-based short video platform disclosed the funding details in a regulatory filing released after the market closed on Thursday. The company was targeting a $15 billion valuation from the raise, Bloomberg reported.
Kuaishou shares rose as much as 6.89% at Friday's Hong Kong market open before paring gains to trade around 0.75% higher.
Tencent, which owns the generative AI platform Hunyuan, a domestic rival to Kling AI, is investing $200 million as part of the funding round, which raised a total of 19 billion yuan ($2.79 billion). The deal will dilute Kuaishou's stake to 68%.
Beyond Tencent, the funding round drew a broad consortium of backers, including 21 independent investors.
CNBC previously reported on the hype and intense competition surrounding China-based AI video generators, with Kling AI increasingly targeting growth outside its home market
Kling AI serves as a core creator studio offering AI-driven features and claims to reach more than 60 million creators globally after launching in June 2024.
Kuaishou is China's second most popular short-video platform, with a reported 700 million monthly active users spending more than 130 minutes per day with its services.
SummaryProsus is reiterated as a Strong Buy, leveraging Tencent dividends to build global growth engines and maintaining a significant holding company discount.FY26 saw 12% revenue growth, ecosystem aEBITDA up 44%, and free cash flow exceeding $1.5 billion, with profitability across all three regional ecosystems.A new $5 billion buyback program, ongoing non-core divestments, and strategic investments in iFood and JET underscore capital allocation discipline.Despite macro pressures and a persistent holding discount, PROSY’s diversified exposure and synergy potential position it for long-term value creation. hapabapa/iStock Editorial via Getty Images
Introduction The last time I covered Prosus N.V. (PROSY) (PROSF), I highlighted how the company is “Turning Tencent Dividends Into Global Growth Engines,” reiterating the Strong Buy rating while the company continued
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PROSY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TCEHY, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
, /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced that its annual general meeting (the "AGM") was held in Hong Kong on June 30, 2026 and all the proposed resolutions set out in the notice of the AGM dated May 20, 2026 were duly passed at the AGM.
About Tencent Music Entertainment
Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading online music and audio entertainment platform in China, operating the country's highly popular and innovative music apps: QQ Music, Kugou Music, Kuwo Music and WeSing. TME's mission is to create endless possibilities with music and technology. TME's platform comprises online music, online audio, online karaoke, music-centric live streaming and online concert services, enabling music fans to discover, listen, sing, watch, perform and socialize around music. For more information, please visit ir.tencentmusic.com.
Investor Relations Contact
Tencent Music Entertainment Group
[email protected]
+86 (755) 8601-3388 ext. 885034
SummaryCompaniesCXMT signed multi-year contract to supply server DRAM chipsAlso in talks with other major Chinese internet companiesMemory maker building a new Shanghai plant focused on DRAMTencent deal comes ahead of planned mega IPO in ShanghaiJune 29 (Reuters) - Chinese memory chipmaker ChangXin Memory Technologies (CXMT) has signed a long-term supply agreement with Tencent Holdings (0700.HK), opens new tab worth more than 20 billion yuan ($2.94 billion) ahead of its blockbuster stock market debut, according to three people with knowledge of the matter.
The agreement covers several years of DRAM chip supply for servers, the people said, speaking on condition of anonymity as the details are private. Two of the sources said the deal spans up to three years, while the third said it covers up to five years.
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DRAM, or dynamic random-access memory, is a critical component for servers that power cloud computing, databases and AI workloads. Modern data centres need DRAM to run applications without bottlenecking, making long-term supply contracts a priority for companies amid a prolonged global shortage that has led to soaring memory chip costs.
Further details of the deal were not immediately clear, including whether it includes CXMT's high-bandwidth memory (HBM), an essential component in high-performance AI chips.
CXMT and Tencent didn't immediately respond to requests for comment.
Founded in 2016 with government backing, CXMT leads China's strategic push to build a foothold in a global DRAM market dominated by South Korean and U.S. companies.
The previously unreported deal comes at a critical juncture for CXMT, which received approval from the Shanghai Stock Exchange in May for an initial public offering on the STAR Market that aims to raise 29.5 billion yuan, setting it up to be one of mainland China's largest listings in years.
The size of the commitment from one of China's biggest internet companies represents a major endorsement of the Hefei-based firm, which has long been viewed as a technological laggard compared with global leaders Samsung Electronics (005930.KS), opens new tab and SK Hynix (000660.KS), opens new tab.
CXMT is also in discussions with other major Chinese internet companies on similar collaborations, two additional sources said. It counts Tencent, Alibaba Cloud (9988.HK), opens new tab, ByteDance, Lenovo (0992.HK), opens new tab and Xiaomi (1810.HK), opens new tab as major customers, according to its IPO prospectus.
EXPLOSIVE GROWTHThe Tencent deal reflects a broader shift in China's technology supply chain, as domestic internet giants scramble for memory chip supply amid a global shortage.
DRAM contract prices surged roughly 95% quarter-on-quarter in the first quarter of 2026, according to UBS, with the investment bank forecasting the memory upcycle to continue until at least late 2027. The global memory market could reach $786 billion this year and $1.2 trillion in 2027, UBS estimates.
CXMT, the world's fourth-largest DRAM maker with approximately 7.7% market share in 2025, has ridden the upcycle to explosive growth. Its first-quarter revenue hit 50.8 billion yuan, up 700% year-on-year, while it recorded a net profit of 25 billion yuan, compared with a 1.6 billion yuan loss a year earlier.
Long-term agreements with price bands and pre-payments have become increasingly common across the industry as large cloud computing companies — known as hyperscalers — seek to lock in supply, with some committing more than 50% of their volumes over three-to-five-year terms, the UBS note said.
DOUBLING CAPACITYCXMT is aggressively expanding production capacity to capitalise on the upcycle, according to two of the sources and an additional source.
In addition to its existing Shanghai facility focused on high-bandwidth memory (HBM) packaging, CXMT has begun building a new DRAM plant in the city, two of those sources said.
CXMT currently has two 12-inch DRAM fabrication plants — or fabs - in Hefei and one in Beijing, with a combined capacity of about 300,000 wafers per month.
With the new Shanghai facility and other new capacity, CXMT will double its DRAM wafer output to approximately 600,000 wafers per month, all three sources added.
The company, however, faces challenges. CXMT experienced low production yields on its DDR5 next-generation memory products in the first quarter, one of the sources said, a reminder of the technology gap that still separates it from established global players.
($1 = 6.7982 Chinese yuan)
Reporting by Reuters newsrooms; Editing by Kevin Buckland
Our Standards: The Thomson Reuters Trust Principles., opens new tab
China’s Tencent is reportedly testing an app designed for overseas travelers to its country.
TenPayGo was created to function as a one-stop digital services platform that includes mobile payments, Bloomberg News reported Sunday (June 28), citing Jiemian News. The app, now being tested, lets users spend directly at millions of merchants in China that accept Weixin Pay, letting visitors send and explore China with no need for cash, the report added.
Bloomberg noted that China is seeing a steep increase in foreign visitors, with almost 7 billion cross-border trips logged last year, according to the National Immigration Administration. Overseas nationals made up more than 82 million entries and exits, a 26.4% increase compared to the prior year.
The report added that this increase is indicative of expanded visa-free arrangements and wider travel facilitation measures, which authorities say have made it easier for foreign visitors to come to China for both business and pleasure.
Tencent’s efforts come at a time when digital wallets are evolving from “a more convenient way to pay” to “something more consequential: a platform for managing permissions,” as PYMNTS wrote last week.
This evolution can be seen in two recent developments. Samsung’s launch of Samsung ID with CLEAR lets American passport holders store TSA-approved digital credentials inside Samsung Wallet. Meanwhile Visa and OpenAI announced plans to support payments initiated by artificial intelligence agents operating under consumer-defined rules and controls.
“Viewed separately, one initiative concerns identity and the other payments,” PYMNTS wrote. “Together, they point toward a broader development in digital commerce: identity verification and spending authorization are beginning to reside in the same place.”
The report cited data from PYMNTS Intelligence which suggests consumers, younger ones in particular, are already making digital wallets part of their regular shopping behavior, setting the stage for them to get comfortable using them for other things.
The traditional role of digital wallets, the report continued, was to offer users a place to store payment credentials and make checkout simpler. Today’s wallets, however, house boarding passes, loyalty cards, tickets, digital keys and government credentials.
“A wallet that can prove who a consumer is occupies a different position in the commerce ecosystem than one that simply stores a card number,” PYMNTS wrote. “Identity credentials are difficult to establish, heavily regulated and tied directly to fraud prevention and security requirements. Once consumers rely on a wallet for identity verification, the relationship becomes more durable.”
Tencent on Monday said it is testing an AI assistant within WeChat in China as the tech giant looks to step up efforts to challenge rivals in the country's competitive artificial intelligence market.
Xiaowei, "a native AI assistant," is being tested "on a small scale" in Weixin, the Chinese version of WeChat, Tencent said in a statement translated by CNBC.
Users can interact with Xiaowei with text or voice, communicate with friends and launch "mini-programs," Tencent added. Mini-programs are apps that run inside of WeChat.
Tencent executives have been mulling further integration of AI into WeChat since last year, with investors watching closely to see if this can be a new revenue stream and a way to monetize AI.
watch now
WeChat and Weixin have more than 1.4 billion monthly active users combined, with the majority in China. It is an indispensable part of daily life in China, where people use the app to message friends, make payments, book restaurants and much more.
By integrating an AI tool into an app with a huge user base, Tencent has an opportunity to capture a large number of them for its services.
"Putting an assistant inside Weixin is the first time Tencent uses the advantage it has held all along, and that matters a lot," Howard Yu, the LEGO professor of management and innovation at IMD, told CNBC by email.
"A standalone chatbot gives you an answer. An assistant wired into Weixin completes the task. And it's this second advantage that no rival can copy," Yu added.
The company did not give further details about the capabilities Xiaowei would have or what AI models it is based on.
Tech companies are talking up the potential of so-called AI agents, which they see as digital assistants that are able to carry out complex tasks on a user's behalf across different apps and services.
The new AI assistant is part of a bigger move from Tencent to challenge rivals like Alibaba, DeepSeek and Zhipu in China, which has become an incredibly competitive AI market. This year, Tencent poached an OpenAI researcher to become its chief AI scientist.
Tencent also develops its own family of models under the brand name Hunyuan.
The global video games industry is entering a period of consolidation that is likely to favour the biggest publishers and developers, according to analysts at Bernstein, who argue that investors should look beyond slowing revenue growth and focus on rising barriers to entry.
The broker estimates the gaming market will generate around $220 billion of revenue in 2026, up 0.7%, following growth of 4.8% last year.
While that points to a softer near-term outlook, Bernstein believes the industry is becoming increasingly concentrated as smaller studios struggle with rising development costs and a tougher funding environment.
The firm said studio closures and restructuring programmes across the industry were reducing competition and strengthening the position of established developers with successful intellectual property and large player communities.
Bernstein highlighted Asian gaming groups as its preferred investments, including Tencent Holdings (HKG:0700, OTC:TCEHY), NetEase (NetEase Inc (NASDAQ:NTES)), Nintendo (OTCMKTS:NTDOY), Capcom (OTCMKTS:CCOEY) and Konami (LON: KNM).
Analyst Robin Zhu argued that Japanese, Chinese and Korean developers continue to benefit from lower development costs and improving productivity compared with many western rivals.
PC gaming was also identified as one of the industry's strongest growth areas, supported by advances in hardware and a growing number of blockbuster releases.
Attention is increasingly turning to the launch of Grand Theft Auto VI, published by Take-Two Interactive Software Inc (NASDAQ:TTWO), which is expected in November.
Zhu said rival publishers had crowded release schedules into September in an effort to avoid competing directly with what is widely expected to be one of the biggest game launches in history.
The broker also dismissed concerns that AI will materially disrupt the industry's economics, arguing that successful franchises, creative storytelling and engaged player communities remain the key drivers of long-term value creation.
SAN LEANDRO, Calif., June 24, 2026 (GLOBE NEWSWIRE) -- Quino Energy, a company developing water-based organic flow batteries, has been selected by Tencent for a grant, under its CarbonX program, to fund development of a MWh-scale battery system to demonstrate reliable clean energy generation for Himandhoo Island in the Maldives. The battery will be integrated into a larger microgrid featuring floating PV generation financed by the Asian Development Bank and will complement the ongoing Preparing Outer Islands for Sustainable Energy Development (POISED) project that will install terrestrial PV and lithium-ion batteries on the island.
The Quino Energy battery will provide the microgrid with essential energy storage capabilities to slash reliance on expensive imported diesel to generate electricity, reducing costs while providing a resilient power supply to the island. This energy supply will be critical to the island community’s safety and ability to continue daily operations in the face of extreme weather or fluctuating energy demands.
The project will be supported by Atri Energy Transition, which led Quino Energy’s Series A fundraising round in October 2025. They will be collaborating with Quino Energy to manufacture the proprietary organic electrolyte in nearby Pune, India, and will also provide Operations and Maintenance (O&M) support for the battery system at Himandhoo Island for at least five years after commissioning. Suqian Time Energy Storage will provide the flow battery hardware, and EPC and island microgrid specialist Sinosoar will take charge of installation, construction, and integration. Earlier in the month, the entire project team visited Himandhoo Island and met with representatives from the local council, as well as other representatives from the Maldives Ministry of Climate Change, Environment, and Energy in the capital, Malé.
“Quino Energy is immensely grateful for the support from the Tencent CarbonX program to enable us to demonstrate our organic flow battery in a setting that can directly benefit a community,” said Eugene Beh, CEO and cofounder of Quino Energy. “This represents the first commercial deployment of the organic flow battery technology, in addition to government-supported projects we previously announced. The collaboration showcases how Quino’s technology will continue to enable cooperation between parties from across the world to rapidly advance the next generation of flow batteries.”
“We’d like to extend our congratulations to Quino Energy and all the stakeholders of this project,” said S. Kishore, founder of Atri Energy Transition. “The selection of Quino by Tencent for the CarbonX Award is an endorsement of organic electrolyte chemistry. We are happy to be part of the transition of this chemistry from pilot to commercial scale.”
CEO Eugene Beh will attend the CarbonX Award Ceremony today, June 24, organized by TED Countdown, in tandem with London Climate Action Week to accept this grant.
In the past 18 months, Quino Energy closed its series A funding round, led by Atri Energy Transition, received a $10M grant from the California Energy Commission and secured $5M in funding from the U.S. Department of Energy’s Critical Facility Energy Resilience (CiFER) program to support a 5 MWh flow battery deployment in Southern California. Quino Energy also signed a Joint Development Agreement with Jena Flow Batteries, whose parent company Suqian Time Energy Systems is the flow battery hardware provider for the Himandhoo project.
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About Quino Energy
Formed in 2021, Quino Energy is a start-up company that is developing water-based flow batteries that store electrical energy in organic molecules called quinones, for commercial and grid applications. These batteries are predicted to enjoy a unique combination of low capital cost, true fire safety, rapid scalability, and local manufacturability. This is made possible by a number of technological breakthroughs, some of which were first discovered at Harvard University and later licensed by Quino Energy. Please visit quinoenergy.com for more details on the team and the technology.
About CarbonX
The CarbonX Program was initiated in 2023 by Tencent, together with industry, investment, and ecosystem partners. It is dedicated to supporting emerging low-carbon technologies with substantial catalytic funding and resources. Now in its second phase, CarbonX 2.0 focuses on cutting-edge CCUS, carbon removal, and long-duration energy storage technologies, and solicits proposals from early-stage teams around the world. It aims to build first-of-its kind pilot projects in real industrial settings, incubate high-potential startups, and support capacity building projects. Visit the CarbonX website for further information on the program.
About Tencent
Tencent is a global technology and entertainment company focused on creating connections and experiences that matter. Founded in 1998, Tencent is driven by its mission to create "Value for Users" and apply "Tech for Good".
Tencent's communication and social services connect more than one billion people around the world, helping them to keep in touch with friends and family, access transportation, pay for daily necessities, and even be entertained. Tencent also develops and publishes some of the world's most popular video games and other high-quality digital content, delivering rich and immersive interactive entertainment experiences. Tencent also offers a range of services such as cloud computing and other enterprise services to support our clients' digital transformation and business growth. Headquartered in Shenzhen, Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since June 2004.
Tencent Holdings is deeply undervalued, trading at a forward P/E of 12.7 despite robust fundamentals and resilient cash generation. Gaming is accelerating, with domestic gross receipts up in the teens percent and international gaming revenue up 13% YoY, signaling a revitalized growth trajectory. Weixin's closed-loop ad platform is driving 20% YoY marketing revenue growth, leveraging AI and integrated commerce for superior conversion and monetization.
Core headline earnings are expected to increase between 19% to 28% reflecting strong revenue growth and profitability across its businesses, most notably Tencent.
Tencent's largest shareholder expects core earnings for fiscal 2026 to get a boost from revenue growth across its own operations as well as its investment in the tech giant.
TOKYO--(BUSINESS WIRE)--NEXON Co., Ltd. (Nexon) (3659.TO), a global leader in online games, today announced a ten-year renewal to the long-standing partnership with Tencent in publishing Nexon's flagship PC action RPG Dungeon&Fighter in China. Terms of the agreement were not released. “Dungeon&Fighter players in China will be pleased to know that Nexon and Tencent have signed a long-term agreement to provide another decade of great experiences in their favorite PC game,” said Junghun Le.
Tencent Music Entertainment Group NYSE: TME reported steady first-quarter 2026 results as management highlighted growth in music-related services, rising contributions from offline performances and continued pressure from competition and AI-related copyright issues.
The collaboration supports ARKIE AI's platform development across compute, hosting, and storage infrastructure. Bangkok, Thailand--(Newsfile Corp. - May 18, 2026) - ARKIE AI, an AI-native application ecosystem platform, today announced a partnership with Tencent Cloud, the cloud business of global technology company Tencent, to support its growing cloud infrastructure needs.
Tencent (TCEHY) is upgraded to HOLD with a $76/share target, reflecting a 24% upside as it pivots to an AI-first strategy. 1Q26 results highlight robust cash flow from gaming and advertising, funding aggressive AI investment without compromising the balance sheet. AI initiatives include a rebuilt foundational model team, major capex increases, and rapid adoption of enterprise AI tools like WorkBuddy and QClaw.
SHENZHEN, China, May 20, 2026 /PRNewswire/ -- Tencent Music Entertainment Group ("TME," or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced that it will hold its annual general meeting of shareholders (the "AGM") at 10/F, The Hong Kong Club Building, 3A Chater Road, Central, Hong Kong on Tuesday, June 30, 2026 at 10 a.m. (Beijing/Hong Kong time) for the purposes of considering and, if thought fit, passing the resolutions as set forth in the notice of the AGM (the "AGM Notice").
Tencent Music is positioned for ecosystem expansion following the regulatory approval of its Ximalaya acquisition. TME's Q1 results beat on efficiency, but Q2 guidance is lowered due to intensifying competition and rising user churn risk. The Ximalaya deal fills the company's long-form audio gap, potentially boosting user stickiness and offsetting stagnating music subscription growth.
China's economy is sending mixed signals – retail sales growth in April hit its weakest level since the Covid-19 era, and broader consumer sentiment remains subdued. Yet within that fog, a sharper picture is emerging for equity investors: artificial intelligence is the one theme cutting cleanly through the noise.
Tencent Holdings Limited remains a Buy, supported by robust Q1 results and strong long-term growth potential as they continue expanding in AI and Cloud. Q1 highlights include 9.1% revenue growth, 20% FCF growth, aggressive cloud/AI investment, and a 63% net cash increase. Valuation implies a solid margin of safety, with intrinsic value estimated well above current levels even under more conservative estimates.
U.S. PayPal users can now make purchases across China using WeChat Pay's QR-code merchant network, Tencent Financial Technology said on Wednesday, adding the service will be rolled out to PayPal users in other markets in phases.
