Tencent reported first-half 2026 revenue of RMB 401.24 billion, up 10%. Net profit attributable to shareholders rose 11% to RMB 114.12 billion, while basic EPS increased 11% to RMB 12.64.

Second-quarter revenue grew 11% year-on-year to RMB 204.79 billion and 4% sequentially. Quarterly net profit attributable to shareholders edged up 0.7% to RMB 56.02 billion, with a basic EPS of RMB 6.21.

Gross margin improved to 58% in both the quarter and the half-year (2Q25: 57%). Non-IFRS net profit for 1H26 reached RMB 136.32 billion, a 10% gain.

Segment Highlights (2Q26) • Value-Added Services (VAS): Revenue RMB 98.41 billion, up 8%, driven by a 17% rise in domestic game sales to RMB 47.30 billion; international games revenue slipped 0.8% to RMB 18.60 billion. • Marketing Services: Revenue RMB 43.57 billion, up 22%, supported by AI-enhanced ad targeting and the “618” shopping festival. • FinTech & Business Services: Revenue RMB 60.29 billion, up 9% on higher commercial payments, wealth management, consumer loans and cloud demand.

Operating Metrics • Combined MAU of Weixin and WeChat reached 1.439 billion (+2%). • Fee-based VAS subscriptions averaged 259 million (-2%).

Cash & Balance Sheet • Net cash stood at RMB 58.19 billion (31 Mar 26: RMB 146.86 billion) after RMB 84.72 billion of capital expenditure and the RMB 41.68 billion 2025 dividend paid in 2Q26. • Capital expenditures surged to RMB 84.72 billion in 1H26 (1H25: RMB 46.58 billion), largely for AI infrastructure.

Investment Portfolio • Fair value of listed equity holdings: RMB 487.20 billion; carrying value of unlisted investments: RMB 387.90 billion. • First-half investment return declined 55% to RMB 4.74 billion, mainly reflecting mark-to-market movements and associate revaluations.

AI Progress Management highlighted rollout of the Hy3 large model, rapid user growth for WorkBuddy and CodeBuddy AI tools, and procurement of additional compute resources to underpin future monetisation.

Dividends No interim dividend was declared for 1H26, consistent with 1H25.

Governance The board now comprises one executive director, two non-executive directors and five independent non-executive directors; Yang Siu Shun continues to chair the Audit Committee.

Outlook Chairman Ma Huateng stated Tencent is “building a new, AI-empowered” organisation, with AI spanning model development, application rollout and infrastructure investment. The company targets sustained growth across marketing services, games and cloud-based FinTech offerings.