The recent Earnings Reports from several companies have been generally positive, including Tencent Music and Niu Technologies yesterday, and Tencent today.
There is not much to say about Tencent; a brief look will suffice:
“Revenue grew by 14.52%, the highest since 2Q 2021; gross profit increased by 22%, with the gross margin rising to 57%, also the highest in recent years for the same period. The most critical metric, 'Gross Profit - Sales Expenses - Administrative Expenses', reached RMB 63.682 billion in 2Q 2025, up 29.31% year-on-year. The 'Gross Profit - Sales Expense Rate - Administrative Expense Rate' was 34.52%, the highest since 2Q 2016.”
There's not much to say, it's just good.
1. A single table reveals the core profit:
2. Revenue is accelerating overall, and the three segments are certainly performing well:
A brief look at the descriptions of the three Business segments:
The revenue of Value-Added Services for the second quarter of 2025 grew by 16% year-on-year to RMB 91.4 billion. Domestic market game revenue was RMB 40.4 billion, up 17% year-on-year, benefiting from the revenue contribution of the recently released 'Operation Delta' and the increased revenue from long-standing games such as 'Honor of Kings', 'Valorant', and 'Peacekeeper Elite'. International market game revenue was RMB 18.8 billion, up 35% year-on-year (up 33% at constant exchange rates), driven by the revenue growth of Supercell's games and 'PUBG MOBILE', as well as the revenue contribution from the newly released 'Dune: Awakening'. Social network revenue grew by 6% year-on-year to RMB 32.2 billion...