Tencent(腾讯)

Fast facts
- Year Founded
- 2004
Source: Tencent Websitewww.tencent.com/en-us/about.html
- HQ Location
- Shenzhen, Guangdong, China
- Publicly Traded?
- Yes
- Overseas Operations
- Yes
Tencent underwent its most aggressive investment period in 2020, with nearly a quarter of its yearly revenue (17 billion) channeled into foreign investment alone. It currently has offices in Amsterdam, Bangkok, Kuala Lumpur and Singapore, Taipei, Seoul, Tokyo, Palo Alto, and Los Angeles. In 2020, Tencent doubled its overseas revenue, but it only accounted for 7% of its total sales. The company is known for its worldwide popular video games such as “PUBG Mobile” and “League of Legends”. At the same time, it owns minority stakes in many foreign game makers, including “Fortnite” developer Epic Games and Activision Blizzard. WeChat Pay has also been part of Tencent’s overseas expansion project. As of now, WeChat Pay is open to 49 countries and supports settlement in 16 foreign currencies. Lastly, Tencent owns Tencent Cloud International, which operates in 68 availability zones and spreads across 27 regions globally. It is now the third-largest provider of cloud-infrastructure service in China, behind Alibaba Group Holding Ltd. and Huawei Technologies Co.Source: 1. Tencent Website 2. IT Juzi 3. The Wall Street Journal 4. WeChat 5. Tencent Cloud Website
- US Sanctions
- No
- Military Affiliation in China
- No
Revenue
2020Source: Tencent 2020 Annual Reportstatic.www.tencent.com/uploads/2021/04/08/960eae1f18dd716fd3a7d704e123d7a5.pdf
Valuation
Valuation is reported as market capitalization. It was converted from HKD using the exchange rate from June 26, 2022 13:49:52.Source: Yahoo Financefinance.yahoo.com/quote/TCEHY/key-statistics
Employees
Source: Tencent 2020 Annual Reportstatic.www.tencent.com/uploads/2021/04/08/960eae1f18dd716fd3a7d704e123d7a5.pdf
Based in Shenzhen, Tencent is one of the world’s largest technology companies. Its businesses span a wide array of internet-related services including entertainment (gaming and music), social media, artificial intelligence, banking, and payment systems.
Tencent owns the most widely used communication platforms across China including the instant messaging app QQ and WeChat. WeChat has become a communication tool and ID that is more essential than a phone number for daily life in China. It also owns Tencent Music Entertainment, which boasts more than 700 million active users and 120 million paying subscribers.
In 2016, Tencent, together with electronics manufacturer Foxconn and luxury car dealer Harmony New Energy Auto, founded Future Mobility (now known as Byton), a pure all-electric vehicle startup. Tencent has created its own AI self-driving program, a competitor to Baidu’s Apollo Project, recruiting numerous industry players.
MIH TC is controlled by Naspers Limited, a South African holding company. Advance Data Services Limited is wholly-owned by Ma Huateng.
Source: Tencent 2020 Annual Reportstatic.www.tencent.com/uploads/2021/04/08/960eae1f18dd716fd3a7d704e123d7a5.pdf
-
- Name
- Ownership
-
- MIH TC Holdings
Source: Qichachawww.qcc.com/firm/h72fe680f39cb8e9e1cff9a7fec6b4a5.html
- 28.86%
- MIH TC Holdings
-
- Advance Data Services
Source: Qichachawww.qcc.com/firm/h72fe680f39cb8e9e1cff9a7fec6b4a5.html
- 7.4%
- Advance Data Services
-
- Ma Huateng Global Foundation
Source: Qichachawww.qcc.com/firm/h72fe680f39cb8e9e1cff9a7fec6b4a5.html
- 0.99%
- Ma Huateng Global Foundation
- Ma Huateng (马化腾), Founder and CEO
- Lau Chi Ping, Executive Director and President
- Xu Chenye, Co-Founder, Chief Information Officer
Tencent underwent its most aggressive investment period in 2020, with nearly a quarter of its yearly revenue (17 billion) channeled into foreign investment alone. It currently has offices in Amsterdam, Bangkok, Kuala Lumpur and Singapore, Taipei, Seoul, Tokyo, Palo Alto, and Los Angeles. In 2020, Tencent doubled its overseas revenue, but it only accounted for 7% of its total sales. The company is known for its worldwide popular video games such as “PUBG Mobile” and “League of Legends”. At the same time, it owns minority stakes in many foreign game makers, including “Fortnite” developer Epic Games and Activision Blizzard. WeChat Pay has also been part of Tencent’s overseas expansion project. As of now, WeChat Pay is open to 49 countries and supports settlement in 16 foreign currencies. Lastly, Tencent owns Tencent Cloud International, which operates in 68 availability zones and spreads across 27 regions globally. It is now the third-largest provider of cloud-infrastructure service in China, behind Alibaba Group Holding Ltd. and Huawei Technologies Co.
Tencent Sanctions
While at this time it appears that this company is not the subject of any U.S. or other global sanctions, it is important to note that Chinese companies tend to have more opaque organizational structures than their Western peers. Chinese companies' affiliated brands, operating units, and overseas subsidiaries are not always obvious or even identifiable. Given this, a Chinese company may not be the subject of sanctions, but one of its subsidiaries may be, thus making it difficult to accurately ascertain a company's full sanctions status.
Tencent Reputational Disclosures
Tencent shares have fallen 42% from a January 2021 high as authorities moved to curb anti-monopoly practices among tech giants. The state-owned Economic Information Daily described games as “spiritual opium” and “electronic drugs,” prompting the company to broach a ban for kids.
China’s Ministry of Industry and Information Technology has told app stores and platforms to implement the order against Tencent apps from November 24, 2021 in a harsh administrative punishment against the tech giant. The regulatory move comes amid Beijing’s ongoing scrutiny of the country’s tech sector. Beijing has been turbocharging its legislative efforts to regulate data in the country.