Tencent Holdings (00700) announced its Q3 2025 financial results, with revenue reaching RMB 192.87 billion, up 15% YoY and 5% QoQ. Gross profit rose 22% YoY to RMB 108.8 billion, while net profit attributable to equity holders grew 19% YoY to RMB 63.13 billion. Under non-IFRS measures, profit increased 18% YoY to RMB 70.55 billion. Basic EPS stood at RMB 6.952. The company repurchased 35.36 million shares for HK$21.1 billion during the quarter.

Sales and marketing expenses surged 22% QoQ to RMB 11.5 billion, driven by promotional efforts for games and AI-native applications. General and administrative expenses climbed 7% QoQ to RMB 34.2 billion due to higher R&D spending. Separately, Tencent reached an agreement with Apple, allowing the latter to take a 15% cut from in-app purchases on WeChat mini-games.

**Market Overview** The Nasdaq Golden Dragon China Index fell 1.59%, with Baidu dropping over 6% and Bilibili down 4%. Hong Kong’s Hang Seng Index ADRs declined 1.18% to 26,753.67.

**Key Developments** 1. **6G Progress**: China has completed Phase 1 of 6G trials, accumulating over 300 key technologies. 2. **Quantum Computing**: The "Tianyan-287" superconducting quantum computer, developed by China Telecom Quantum, achieves "quantum supremacy" with processing speeds 450 million times faster than supercomputers. 3. **Energy Sector**: China encourages private capital to invest in oil/gas storage and LNG terminals. 4. **Corporate Updates**: - BYD’s electronics unit has deployed AMR logistics robots to enhance efficiency. - Cambridge Technology (06166) began small-scale shipments of 1.6T optical modules, with mass production expected by Q1 2026. - SMIC (00981) posted a 28.9% YoY profit increase to $192 million in Q3. - JD Group (09618) reported 14.85% revenue growth to RMB 299.06 billion, while JD Health (06618) saw profit surge 125.3%. - Bilibili (09626) turned profitable with net income of RMB 469 million, as user metrics hit record highs.

**Notable Transactions** Shanghai Industrial Holdings (00363) agreed to sell a 49% stake in a medical aesthetics hospital for RMB 73.6 million.