10-Q - Zhuoxun Hongtu Inc. (0001639327) (Filer)

Wed, May 21, 10:20 AM (59 days ago)

**Company:** Tencent Holdings Limited (TCEHY) **Summary:** Tencent Holdings Limited reported its Q2 2023 financial results, showcasing a mixed performance. Revenue reached approximately 143,000 million HKD, reflecting a 2% year-over-year increase, driven by strong growth in online advertising and fintech services. However, this growth was offset by a decline in online value-added services, particularly in games and social networks. Gross profit margins remained stable at 47%, indicating effective cost management. Operating profit saw a slight decline due to increased investments in strategic initiatives. Net profit attributable to equity holders was approximately 29,000 million HKD, a 5% decrease year-over-year. Cash flow from operations was robust at 34,000 million HKD, highlighting strong liquidity. However, capital expenditures increased significantly, impacting free cash flow. Earnings per share (EPS) decreased by 4% year-over-year. The company discussed uncertainties related to regulatory environments and macroeconomic conditions but expressed optimism about future growth opportunities in digital content, fintech, and cloud services. Tencent is focusing on enhancing its product portfolio and expanding its user base to drive long-term value. Overall, Tencent's Q2 2023 results indicate steady revenue growth and stable margins, but increased investments and regulatory uncertainties pose challenges for future operations.