Tencent is still very powerful. In fact, like Meta, its strong network effect allows WeChat to block users. As is Tencent's corporate culture under My Little Pony's leadership, “everything is packed in a basket,” it's all for shareholders, without messing around. So there is no problem with qualitative data; we are still tracking and quantifying financial data here.
First of all, I personally think the results for this quarter are very good. In terms of valuation, I think it's still cheap to look at the long run. Of course, from the perspective of opportunity costs, I think there are better choices. Of course, I think Tencent is also a good choice; there's nothing you can do about it. $KraneShares CSI China Internet ETF (KWEB.US)$ Systematic underestimation.
Next, let's talk about the financial report in detail:
1. Direct and quick access to the operating data of the income statement (skip before non-operating)
Revenue was $154.625 billion, YOY 10.37%. The basic growth rate was the same as the 11.32% in Q2. The gross profit was 76.523 billion, YOY 23.46%, which is higher than 22.42% in Q2. The gross profit margin was 49.49%, and the gross margin reached the highest value since Q1 2018.
Expense ratio: The sales expense ratio is 5.12%, and the management expense ratio is 17%. The sum of these two items is also well controlled, so in the end, “gross profit - sales expenses - management expenses” = 42.322 billion, yoy 49.13%. The “gross profit - sales expenses - management expenses” ratio was 27.37%, and this value was recorded in 2020...