Leidi.com Lei Jianping April 7
Tencent released its 2022 annual report today. The report shows that Tencent's revenue in 2018, 2019, 2020, 2021, and 2022 will be 312.694 billion yuan, 377.289 billion yuan, 482.064 billion yuan, 560.118 billion yuan, and 554.552 billion yuan, respectively.
Tencent’s revenue from value-added services in 2022 will be 287.565 billion yuan, accounting for 52% of revenue; online advertising revenue will be 82.729 billion yuan, accounting for 15% of revenue; revenue from financial technology and enterprise services will be 177.064 billion Yuan, accounting for 32% of revenue.
Tencent's annual profits in 2018, 2019, 2020, 2021, and 2022 are 79.984 billion yuan, 95.888 billion yuan, 160.125 billion yuan, 227.81 billion yuan, and 188.709 billion yuan; the adjusted profits are 77.469 billion yuan and 94.351 billion yuan respectively , 122.742 billion yuan, 123.788 billion yuan, 115.649 billion yuan.
For two consecutive years, the shares of JD.com and Meituan have been distributed
Tencent is very generous to investors, and has distributed equity in JD.com and Meituan for two consecutive years.
At the end of December 2021, Tencent issued an announcement to distribute approximately 460 million Class A ordinary shares of JD.com to its shareholders. Tencent shareholders who received JD shares in this distribution became new shareholders of JD.com. After this dividend payment, Tencent’s shareholding in JD.com dropped from 17% to 2.3%, and it is no longer the largest shareholder.
In November 2022, Tencent's board of directors resolved to declare a special interim dividend, and shareholders listed on the company's register of shareholders on January 10, 2023 will receive 1 ordinary share of Meituan for every 10 shares they hold On the basis of distribution in specie, the Class B ordinary shares of Meituan indirectly held by the company will be distributed to shareholders according to their respective shareholding ratios in the company. After deducting the shares held by the share plan trust on January 10, 2023 and the dividends (Meituan shares) that will be received by the company on shares repurchased but not cancelled, approximately 948 million Meituan Class B ordinary shares will be distributed.
After the dividend is paid, Tencent retains about 1.56% of Meituan’s shares. Meituan is no longer accounted for as a Tencent affiliate.
Recently, Tencent announced that executive director Liu Chiping will retire by rotation in accordance with the company's articles of association, and will not stand for re-election at the company's annual general meeting on May 17, 2023.
After the conclusion of the annual general meeting in 2023, Liu Chiping will no longer be a director of Tencent, but will continue to serve as the company's president and chairman of the investment committee.
Tencent stated that the company believes that Liu Chiping's retirement by rotation will distinguish the responsibilities of the board of directors and management, and increase the proportion of non-executive directors and female directors on the board of directors, thereby improving the company's overall governance structure.
Tencent also stated that the board of directors proposed to distribute a final dividend of HK$2.40 per share (2021: HK$1.60 per share) for the year ended December 31, 2022, subject to shareholders’ approval at the 2023 annual general meeting. Reality. These proposed dividends are expected to be paid on June 5, 2023 to shareholders whose names appear on the Company's register of members on May 24, 2023.
Major shareholders continue to reduce holdings and cash out more than 60 billion Hong Kong dollars
The executive directors of Tencent are Chairman Ma Huateng and President Liu Chiping; the non-executive directors are Jacobus Petrus (Koos) Bekker and Charles St Leger Searle; the independent non-executive directors are Li Dongsheng, Ian Charles Stone, Yang Shaoxin, Ke Yang and Zhang Xiulan.
As of December 31, 2022, Ma Huateng held 804,859,700 shares, with a shareholding ratio of 8.41%; Liu Chiping held 53,533,679 shares, with a shareholding ratio of 0.56%.
As of December 31, 2022, Tencent's shareholding structure
Tencent's major shareholder MIH Internet Holdings BV holds 2,577,168,400 shares, holding 26.93% of the shares. MIH is controlled by Naspers Limited through its non-wholly owned subsidiary Prosus NV. MIH Internet Holdings BV is a wholly owned subsidiary of Prosus NV.
As of December 31, 2021, Tencent's shareholding structure
As of December 31, 2021, Ma Huateng holds 8.38% of the shares, and Liu Chiping holds 0.58% of the shares. Prosus holds 28.82% of the shares through MIH TC.
Naspers sold a total of 189,978,300 Tencent shares at a total price of HK$76.94 billion in 2018, accounting for about 2% of Tencent's issued shares. Prosus is a holding company used to hold the international Internet assets of South African investment company Naspers. On September 11, 2019, Prosus was listed in the Netherlands.
In April 2021, Prosus reduced its shareholding in Tencent from 30.9% to 28.9%. Based on the stock price at that time, it means that Prosus has cashed out nearly 120 billion Hong Kong dollars. Prosus will complete the sale of the JD.com shares acquired from Tencent on June 24, 2022, with a total proceeds of approximately US$3.67 billion.
In June 2022, Prosus announced the launch of a long-term, open-ended repurchase plan to increase the group's net asset value per share. The repurchase funds were obtained through Naspers' orderly and small sale of Tencent's shares.
This is the third time that Prosus and Naspers have announced a reduction in holdings after 2018 and 2021. It's just that this time the reduction is different from the previous two times, the reduction method is promoted by a small amount of continuous reduction. Naspers expects that the average number of Tencent shares sold per day will not exceed 3-5% of Tencent's average daily trading volume.
Overall, Prosus will reduce its 1.89% stake in Tencent in 2022. If calculated based on the current market value of 3687.9 billion Hong Kong dollars, it is worth 69.7 billion Hong Kong dollars.
In order to hedge the adverse impact on Tencent’s stock price caused by the reduction of major shareholders’ holdings, Tencent will repurchase a total of 107,083,000 shares at a total price of approximately HK$33.8 billion around 2022. The repurchased shares were subsequently cancelled.
Tencent said the repurchase is aimed at enhancing shareholder value in the long run.
Entering 2023, Prosus is still continuing to reduce its shareholding in Tencent, which makes the company's stock price face severe turmoil when Tencent is unable to repurchase.
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