This article is reproduced from Tencent.com
After undergoing the 2020 annual epidemic test, Tencent handed in the annual report card and swiped the screen again.
On March 24, Tencent announced its 2020 annual results. Tencent Holdings’ total revenue was 482.06 billion yuan, a year-on-year increase of 28%; net profit was 159.847 billion yuan, a year-on-year increase of 71%; non-IFRS net profit was 122.742 billion Yuan, an increase of 30% year-on-year.
"Although 2020 is full of unprecedented challenges, we believe that stable operations and financial performance confirm our focus on user value and technological innovation." said Ma Huateng, chairman of Tencent's board of directors.
The past year was an important year for the nation to fight the epidemic, and it was also a key year for the accelerated integration of digital, networked and intelligent technologies with the real economy. As an Internet-based technology and culture company, Tencent has seized the lead and achieved substantial growth.
Tencent, which started as a social media company, has 1.225 billion monthly active users on WeChat, a year-on-year increase of 5.2%. Every day, more than 120 million users post content in Moments, and 400 million users use mini programs.
However, from the perspective of Tencent's annual revenue, the revenue of online games such as "Glory of the King" reached 156.1 billion yuan, an increase of 36% year-on-year. At the same time, Tencent disclosed for the first time the consumption data of underage games. Minors under the age of 18 accounted for 6% of Tencent's online game turnover in China, of which minors under the age of 16 accounted for 3.2%.
At the 2020 performance conference of Tencent Holdings, Tencent Holdings Chairman Ma Huateng answered for the first time on the latest situation regarding anti-monopoly. Ma Huateng said that he will actively cooperate with the regulatory authorities and, in general, achieve compliance as much as possible to ensure long-term development.
Performance grows every quarter
Throughout the year, Tencent is one of the beneficiaries of the epidemic, and its performance has achieved four quarters of quarter-on-quarter growth.
In the full-year results, Tencent's growth in the fourth quarter of 2020 was even stronger. Tencent’s fourth-quarter revenue was 133.669 billion yuan, a year-on-year increase of 26%; net profit was 59.302 billion yuan, a year-on-year increase of 175%; non-IFRS net profit was 33.207 billion yuan, a year-on-year increase of 30%.
The financial report disclosed that Tencent's revenue composition mainly includes value-added service business (including online games and social network business), online advertising, financial technology and corporate services, and other revenues.
The revenue of the value-added service business in 2020 is 264.2 billion yuan, an increase of 32% year-on-year. Among them, online game revenue was 156.1 billion yuan, a year-on-year increase of 36%. Tencent explained that this growth was mainly driven by the revenue growth of our smartphone games in the domestic and overseas markets (especially "Peace Elite", "Honor of Kings" and "PUBG Mobile", etc.) and the full-year impact of the Supercell merger. The revenue of personal computer client games declined slightly.
As of the end of 2020, social network revenue has grown to 27% from 108.1 billion yuan. This increase was mainly due to the consolidation of Huya’s live broadcast services, the growth of our music and video membership services revenue, and the increase in sales of game virtual props.
It is worth mentioning that for the first time, Tencent disclosed the data of underage game consumption that the outside world is concerned about: Minors under the age of 18 accounted for 6.0% of Tencent’s online game turnover in China, of which minors under the age of 16 accounted for the turnover. The ratio is 3.2%.
A relevant person from Tencent revealed to reporters that Tencent continues to implement the new regulations for the protection of minors. Due to the restrictions of the new regulations, an average of 17.84 million underage accounts are "kicked" offline due to "excessive login time" every day.
In addition, in terms of online advertising business, revenue in 2020 increased by 20% year-on-year to 82.3 billion yuan, mainly due to platform integration and algorithm upgrades, as well as increased demand from advertisers from industries such as education, Internet services and e-commerce platforms.
Fintech first considers risk and does not chase scale
It is worth mentioning that under Tencent’s high performance growth, Tencent’s financial technology and corporate services businesses have also maintained steady growth.
Data show that Tencent's financial technology and corporate services business revenue was 128.1 billion yuan, a year-on-year increase of 26%. This increase is mainly driven by the expansion of the user base and business scale, and the revenue growth of commercial payment, wealth management services and cloud services.
Among them, in the fourth quarter, Tencent's financial technology and corporate services business revenue reached 38.5 billion yuan, a year-on-year increase of 29%. Tencent explained that business payment and wealth management services have increased revenue due to the increase in transaction volume and single transaction value.
It is worth mentioning that in recent years, financial technology supervision has become more and more stringent, and various regulatory documents have been issued frequently. Tencent also stated in its financial report that the strategic focus of its fintech business is to actively cooperate with regulatory agencies and launch compliant and inclusive fintech products with industry partners, "at the same time prioritizing risk management rather than pursuing scale."
In a conference call after the release of Tencent’s financial report, relevant Tencent executives said that in the past few months, new regulations have been implemented one after another. As a business model for operating financial technology and credit issuance, Tencent will strengthen the operating method of financial technology and emphasize In this regard, Tencent is fully regulated in both substance and form.
In addition, when an analyst asked about the latest anti-monopoly situation, Tencent Chairman Ma Huateng responded that he would actively cooperate with the regulatory authorities and, in general, to achieve compliance as much as possible to ensure long-term development. Liu Chiping, President and Executive Director of Tencent, said that he has met with relevant departments many times on anti-monopoly, and has regular meetings with the government in this regard. During the meetings, many topics are discussed, and he looks forward to creating a healthy environment and allowing more innovations. In China, Tencent has always attached great importance to compliance requirements.
Newly added 23,000 employees with 810,000 per capita salary
Tencent's answer is about 86,000 in terms of how many employees are needed to create 482 billion in revenue and 122.7 billion in net profit in a year.
Tencent’s financial report disclosed that as of the end of 2020, Tencent had 85,858 employees, an increase of approximately 23,000 employees compared to 62,885 in 2019.
What is the total salary cost for these employees? Tencent stated that it will change remuneration based on the number of employees recruited. The remuneration of employees is determined in accordance with industry standards. In addition to pensions and internal training courses, employees will be given red bonuses, bonus shares and share options as appropriate based on individual performance evaluations.
As of the end of 2020, Tencent’s total employee compensation was 69.638 billion yuan, a year-on-year increase of 31% compared with the total compensation of 53.123 billion yuan in 2019.
However, many Tencent employees may feel "averaged" because the per capita income has not increased with the company’s performance. Tencent’s per capita annual salary in 2020 is 814,000 yuan, and in 2019, the per capita annual salary is 845,000 yuan, which has dropped by 3.7. %.
WeChat monthly livelihood is 1.225 billion
Tencent's position in the social field is still difficult to shake for a while.
Data show that WeChat monthly active users were 1.225 billion, an increase of 5.2% year-on-year. However, the monthly active users of QQ declined. QQ monthly active users were 594 million, a year-on-year decrease of 8.1%. The number of registered paid value-added services reached 220 million, an increase of 20%, and the number of paid video users reached 123 million.
Tencent said that in the past ten years, WeChat has evolved from a real-time communication application to a service that meets the digital needs of more than 1.2 billion users. Every day, more than 120 million users publish content in Moments, 360 million users read public account articles, and 400 million users use mini programs. Mini Programs and WeChat Pay help SMEs and brands to strengthen their connections with users. In 2020, the volume of transactions generated through Mini Programs more than doubled year-on-year.
It is worth mentioning that Tencent has gradually created a developed ecosystem. In terms of the WeChat ecosystem, it uses an integrated "digital toolbox" to help small and medium-sized enterprises reach consumers and continue to release the productivity of the digital economy. In 2020, there will be more than 36 million employment opportunities derived from the WeChat ecosystem. WeChat applets and WeChat video accounts have an obvious effect in driving employment.
In the field of industrial Internet, Tencent’s development ecology has taken initial shape. It has established more than 300 joint solutions with more than 8,000 partners, serving 300,000 people in more than 20 industries including healthcare, education, travel, finance, industry, and retail. The services provided by corporate customers have created tens of billions of revenue and jointly promoted the upgrading of the industry.
On the battlefield of automotive intelligence, the maturity of Tencent's Internet of Vehicles solutions and autonomous driving related systems have reached the advanced level of the industry. In January of this year, Tencent's intelligent road inspection program for autonomous driving was the first to be applied on the roads under the jurisdiction of the Futian Administration Bureau of the Shenzhen Municipal Transportation Bureau, marking the first step towards intelligent road inspections in my country.
While cultivating the industrial Internet, with the help of the advantages accumulated on the C side in the past 20 years, the To B product matrix created by Tencent will perform outstandingly in 2020, which not only highlights the company’s ever-changing product capabilities and innovation capabilities, but also provides services to corporate customers. Excellent grip.
Among them, Tencent Conference has become the fastest video conferencing product with more than 100 million users, serving in-depth services for government affairs, finance, education, medical and other industries and online office for small and medium-sized enterprises. In 2020, Tencent Conferences will hold more than 300 million conferences.