Tencent : 2018 Interim Report

2018

Interim Report

CONTENTS

• 2 Corporate Information

• 3 Financial Performance Highlights

• 5 Chairman's Statement

• 11 Management Discussion and Analysis

• 24 Report on Review of Interim Financial Information

• 25 Consolidated Income Statement

• 26 Consolidated Statement of Comprehensive Income

• 27 Consolidated Statement of Financial Position

• 30 Consolidated Statement of Changes in Equity

• 32 Consolidated Statement of Cash Flows

• 34 Notes to the Interim Financial Information

• 81 Other Information

• 98 Definition

Corporate Information

DIRECTORS

Executive Directors

Ma Huateng(Chairman)Lau Chi Ping Martin

Non-Executive Directors

Jacobus Petrus (Koos) Bekker Charles St Leger Searle

Independent Non-Executive Directors

Li Dong Sheng

Iain Ferguson Bruce Ian Charles Stone Yang Siu Shun

AUDIT COMMITTEE

Yang Siu Shun(Chairman)

(re-designated with effect from the conclusion of the 2018 AGM) Iain Ferguson Bruce

Ian Charles Stone Charles St Leger Searle

CORPORATE GOVERNANCE COMMITTEE

Charles St Leger Searle(Chairman)Iain Ferguson Bruce

Ian Charles Stone Yang Siu Shun

INVESTMENT COMMITTEE

Lau Chi Ping Martin(Chairman)Ma Huateng

Charles St Leger Searle

TENCENT HOLDINGS LIMITED

NOMINATION COMMITTEE

Ma Huateng(Chairman)

Li Dong Sheng

Iain Ferguson Bruce Ian Charles Stone Charles St Leger Searle

REMUNERATION COMMITTEE

Ian Charles Stone(Chairman)

Li Dong Sheng

Jacobus Petrus (Koos) Bekker

AUDITOR

PricewaterhouseCoopers

Certified Public Accountants

PRINCIPAL BANKERS

Bank of China Limited

The Hongkong and Shanghai Banking

Corporation Limited

REGISTERED OFFICE

Cricket Square

Hutchins Drive, P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands

TENCENT GROUP HEAD OFFICE

Tencent Building

Kejizhongyi Avenue Hi-tech Park Nanshan District Shenzhen, 518057 The PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

29/F., Three Pacific Place No. 1 Queen's Road East Wanchai

Hong Kong

CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

SMP Partners (Cayman) Limited Royal Bank House - 3rd Floor 24 Shedden Road

P.O. Box 1586

Grand Cayman, KY1-1110 Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Computershare Hong Kong Investor

Services Limited

Shops 1712-1716, 17th Floor Hopewell Centre

183 Queen's Road East Wan Chai, Hong Kong

COMPANY WEBSITE

www.tencent.com

STOCK CODE

700

SECOND QUARTER OF 2018

Revenues

Gross profit

Operating profit

Profit for the period

Unaudited Three months ended

Year-

30 June 2018

30 June 2017

on-year 31 March

change 2018

(RMB in millions, unless specified)

73,675 34,446 21,807 18,580

Quarter-on-quarter change

56,606 28,306 22,560 18,254

30% 22% -3%

73,528

-

37,042 -7%

30,692 -29%

2%

23,973 -22%

Profit attributable to equity holders of the Company

17,867

18,231

-2%

23,290 -23%

Non-GAAP profit attributable to equity holders of the Company

EPS (RMB per share)

- basic - diluted

Non-GAAP EPS (RMB per share)

- basic - diluted

19,716

16,391

20%

18,313 8%

1.893 1.868

1.939 1.914

-2% -2%

2.470 -23%

2.435 -23%

2.089 2.062

1.743 1.721

20% 20%

1.942 8%

1.915 8%

INTERIM REPORT 2018

FIRST HALF OF 2018

Unaudited Six months ended

30 June 2018

30 June Year-on-year 2017 change

(RMB in millions, unless specified)

Revenues	147,203	106,158	39%
Gross profit	71,488	53,749	33%
Operating profit	52,499	41,832	25%
Profit for the period	42,553	32,802	30%
Profit attributable to equity holders of the Company	41,157	32,707	26%
Non-GAAP profit attributable to equity holders of the Company	38,029	30,602	24%
EPS (RMB per share)
- basic	4.363	3.480	25%
- diluted	4.303	3.436	25%
Non-GAAP EPS (RMB per share)
- basic	4.031	3.256	24%
- diluted	3.976	3.215	24%
TENCENT HOLDINGS LIMITED