TENCENT REPORT
A SHORT INTRODUCTION TO ASIA’S MOST IMPORTANT
AND LEAST UNDERSTOOD INTERNET COMPANY
PREPARED BY: MATTHEW BRENNAN & SAMIN SHA
PARTS OF THIS REPORT ARE ADAPTED FROM KEYNOTE SPEECHES DELIVERED BY MATTHEW BRENNAN AT THE ALSMA
APAC REGIONAL CONFERENCE, NOV 2017 SIEM REAP & THE MADE BY CHINA CONFERENCE, DECEMBER 2017 COPENHAGEN.
MATTHEW BRENNAN
CO-FOUNDER OF CHINA CHANNEL
MATTHEW IS A WELL-KNOWN SPEAKER AND WRITER
ABOUT WECHAT AND TENCENT (CHINA'S LARGEST
INTERNET COMPANY). HIS OPINIONS ARE REGULARLY
FEATURED IN GLOBAL MEDIA: THE ECONOMIST, BBC,
THE FINANCIAL TIMES, FORBES, QUARTZ,
TECHCRUNCH, TECHINASIA, CAMPAIGN ASIA,
EMARKETER, ADAGE. MATTHEW'S COMPANY CHINA
CHANNEL ORGANIZES CHINA’S LARGEST WECHAT
MARKETING CONFERENCE SERIES FOR
INTERNATIONAL COMPANIES. HE WORKS PRIMARILY
WITH INTERNATIONAL BUSINESSES TO HELP FORM
AND IMPLEMENT THEIR WECHAT PLATFORM
STRATEGY. CO-HOST OF THE CHINA TECH TALK
PODCAST PRODUCED TOGETHER WITH CHINA'S
LARGEST ENGLISH LANGUAGE TECH MEDIA, MATTHEW
HAS BEEN BASED IN CHINA NOW FOR OVER 13+ YEARS.
FOR SPEAKING AVAILABILITY: INFO@CHINACHANNEL.CO
FOR MEDIA INQUIRIES: MEDIA@CHINACHANNEL.CO
LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN
TWITTER: @MBRENNANCHINA
INTRODUCTION
THIS SHORT REPORT AIMS TO LAYOUT THE BASICS OF TENCENT’S STRUCTURE AND SOME DETAIL ON
THEIR HIGHER MANAGEMENT AND FINANCIALS. I HAVE PUT IT ALL TOGETHER AS A RESOURCE TO HELP
INVESTORS AND TECH INDUSTRY WATCHERS BETTER UNDERSTAND ASIA’S LARGEST TECH GIANT.
INDEX
a. GROUP STRUCTURE
b. MANAGERIAL TALENT
c. OTHERS: FINANCIAL BASICS, KEY PRODUCTS, LOCATIONS
DISCLAIMER
THE INFORMATION IN THIS REPORT IS PIECED TOGETHER AND TRANSLATED FROM A WIDE VARIETY OF
PUBLIC SOURCES. I’VE TAKEN EFFORTS TO TRY AND ASSURE THE INFORMATION IS ACCURATE BUT TAKE
NO RESPONSIBILITY FOR THE VALIDITY OF THE INFORMATION WITHIN. I DO NOT REPRESENT TENCENT
HOLDINGS LIMITED NOR DO I HOLD STOCK IN THEM.
MATTHEW BRENNAN
COPYRIGHT 2018: ALL RIGHTS RESERVED
CHINACHANNEL.CO
GROUP STRUCTURE
7 CORE GROUPS
CHINACHANNEL.CO
TENCENT’S 7 CORE BUSINESS GROUPS
PONY MA
MARK REN
ALLEN
ZHANG
DOWSON
TONG
IEG
OMG
SHAN LU
MARTIN LAU
MIG
CDG
WXG
TEG
SNG
CHINACHANNEL.CO
IEG:
OMG:
MIG:
SNG:
CDG:
WXG:
TEG:
INTERACTIVE ENTERTAINMENT
ONLINE MEDIA
MOBILE INTERNET
SOCIAL NETWORKING
CORPORATE DEVELOPMENT
WEIXIN (WECHAT)
TECHNOLOGY & ENGINEERING
IEG: INTERACTIVE
ENTERTAINMENT GROUP
KEY DIVISIONS + PRODUCTS
TENCENT GAMES
GAME.QQ.COM
FOUNDED AUG
2003,
CURRENTLY
CONTRIBUTES
AROUND 41%
OF ALL
REVENUE
CHINA LITERATURE
HEAD: MARK REN
@TENCENT SINCE 2000
TENECENT COMIC
WWW.YUEWEN.COM
FOUNDED SEP 2013,
MERGED WITH SDO
LITERATURE IN MAR
2015, RECENTLY SPUN
OUT WITH
SUCCESSFUL HONG
KONG IPO
AC.QQ.COM
FOUNDED MAR
2012, BIGGEST
ANIMATION &
COMICS
PLATFORM IN
CHINA
TENCENT PICTURES
TENCENT ESPORTS
PICTURES.QQ.COM
ESPORTS.QQ.COM
FOUNDED SEP
2015, FOCUS ON
TRADITIONAL
MOVIES
CHINA’S NO.1
E-SPORT
PLATFORM
LAUNCHED
DEC 2016
BEIJING
CHENGDU
IEG STAFF GEOGRAPHICAL BREAKDOWN：
*BASED ON TECENT HR HIRING NEEDS DATA 2016
SHENZHEN
SHANGHAI
OMG: ONLINE
MEDIA GROUP
FORMER HEAD: SY LAU
@TENCENT SINCE 2006
KEY DIVISIONS + PRODUCTS
HEAD: MARK REN
TOOK OVER OMG IN MAR 2017
TENCENT NEWS
NEWS.QQ.COM
FOUNDED AUG
2003, THE NO.1
TRADITIONAL
NEWS PORTAL
IN CHINA
QUICK NEWS**
KUAIBAO.QQ.COM
PERSONALIZED
NEWS APP
LAUNCHED AUG
2015 TO
COMPETE WITH
TOUTIAO (DAILY
HEADLINE)
TENCENT VIDEO
V.QQ.COM
LAUNCHED APR
2011, NOW THE
NO.1 VIDEO
PLATFORM IN
CHINA
PENGUIN PICTURES
NONE FOUND
FOUNDED SEP
2015, WITH THE
FOCUS ON
ONLINE
MOVIES &
DRAMAS
TONG
TONG.QQ.COM
BRAND ADS
PLATFORM
LAUNCHED IN
OCT 2011
BEIJING
TENCENT MICROBLOG
T.QQ.COM
FAILED TWITTER
LIKE SOCIAL
PLATFORM
SHUTTERED IN
2014.
GUANGZHOU
OMG STAFF GEOGRAPHICAL BREAKDOWN：
*BASED ON TECENT HR HIRING NEEDS DATA 2016
SHENZHEN
SHANGHAI
** OUR TRANSLATION
MIG: MOBILE
INTERNET GROUP
HEAD: MARK REN
TOOK OVER MIG IN JAN 2013
KEY DIVISIONS + PRODUCTS
MOBILE MANGER
M.QQ.COM
THE NO.1
MOBILE
SECURITY APP
IN CHINA.
RELEASED SEP
2010. IOS
INTEGRATION
SEP 2016
QQ BROWSER
BROWSER.QQ.COM
NO.2 MOBILE
BROWSER IN
CHINA. MOBILE
VERSION
LAUNCHED
JUNE 2010
MYAPP
SJ.QQ.COM
THE NO.1
ANDROID APP
STORE IN
CHINA
LAUNCHED IN
SEP 2011
TENCENT MAP
MAP.QQ.COM
TOP 3 MAP
APPLICATION
IN CHINA.
RELEASED
DEC 2013
TENCENT OS
OPEN PLATFORM
OPEN.QQ.COM
BBS.TOS.CN
LAUNCHED FEB
2010. OPEN
PLATFORM FOR
DEVELOPERS AND
BUSINESS TO
WORK WITHIN
THE TENCENT
ECOSYSTEM
LAUNCHED IN
MAR 2015 AS AN
EXPERIMENTAL
PROJECT ON
MOBILE OS.
SHUT DOWN
JUN 2017
BEIJING
MIG STAFF GEOGRAPHICAL BREAKDOWN：
CHENGDU
*BASED ON TECENT HR HIRING NEEDS DATA 2016
SHENZHEN
GUANGZHOU
SNG: SOCIAL
NETWORK GROUP
HEAD: DOWSON TONG
@TENCENT SINCE 2005
KEY DIVISIONS + PRODUCTS
QQ IM
IM.QQ.COM
THE ORIGINAL
TENCENT
PRODUCT. THE
INSTANT
MESSENGER
THAT STARTED
IT ALL
Q ZONE
QZONE.QQ.COM
SOCIAL
NETWORK
FOUNDED 2005,
USERS CAN
BLOG, STORE
PHOTOS,
MUSIC, AND
VIDEOS.
QQ MUSIC
Y.QQ.COM
ONE OF
CHINA’S
MARKET
LEADING
MUSIC APPS
NOW LIVE STREAM
NOW.QQ.COM
LIVE
STREAMING
PLATFORM
LAUNCHED IN
JUN 2015
TENCENT YOUTU LAB
YOUTU.QQ.COM
FOUNDED IN
2012,
SPECIALIZES
IN FACIAL
AND VOICE
RECOGNITION
TECH
TENCENT CLOUD
CLOUD.TENCENT.COM
CLOUD
COMPUTING
DIVISION
BEIJING CHENGDU
SNG STAFF GEOGRAPHICAL BREAKDOWN：
*BASED ON TECENT HR HIRING NEEDS DATA 2016
SHENZHEN
SHANGHAI
CDG: CORPORATE
DEVELOPMENT GROUP
HEAD: MARTIN LAU
@TENCENT SINCE 2005
KEY DIVISIONS + PRODUCTS
SOCIAL ADS
FINANCIAL TECH
INVESTMENT
E.QQ.COM
FITGROUP.COM
NONE FOUND
FOUNDED MAY 2015,
UNIFIED ALL
PERFORMANCE BASED
AD PLATFORMS
ACROSS TENCENT,
SEE BELOW
FOUNDED SEPT 2015,
UNIFIED TENCENT’S
PAYMENT PLATFORMS
AND FINANCIAL
RELATED PRODUCTS
AND SERVICES
ONE OF
SEVERAL
INVESTMENT
UNITS AT
TENCENT
BEIJING
GUANGZHOU
CDG STAFF GEOGRAPHICAL BREAKDOWN：
*BASED ON TECENT HR HIRING NEEDS DATA 2016
SHENZHEN
SHANGHAI
CHENGDU
WXG: WEIXIN
(WECHAT) GROUP
HEAD: ALLEN ZHANG
@TENCENT SINCE 2005
KEY DIVISIONS + PRODUCTS
QQ MAIL
WECHAT
WEIXIN.QQ.COM
MAIL.QQ.COM
LAUNCHED IN JAN 2011, IT HAS
BECOME CHINA’S DOMINANT SOCIAL
NETWORK AND THE JEWEL IN THE
CROWN OF TENCENT’S EMPIRE
CHINA’S MOST POPULAR
EMAIL SERVICE
LAUNCHED 2002
SHANGHAI
BEIJING
WXG STAFF GEOGRAPHICAL BREAKDOWN：
*BASED ON TECENT HR HIRING NEEDS DATA 2016
SHENZHEN
GUANGZHOU
CHENGDU
TEG: TECHNOLOGY &
ENGINEERING GROUP
KEY DIVISIONS + PRODUCTS
TENCENT BIG
DATA
BIGDATA.QQ.COM
COMPREHENSIVE DATA PLATFORM INCLUDING
ANALYTICS FOR WEBITES, APPS, MINI PROGRAMS
AND HTML5
HEAD: SHAN LU
@TENCENT SINCE 2005
TENCENT AI
LABS
AI.TENCENT.COM
FOUNDED IN APR 2016 WITH FOCUS ON
COMPUTER VISION, VOICE
RECOGNITION, NATURAL LANGUAGE
PROCESSING AND MACHINE LEARNING
TEG STAFF GEOGRAPHICAL BREAKDOWN：
*BASED ON TECENT HR HIRING NEEDS DATA 2016
SHENZHEN
BEIJING
TENCENT EMPLOYEES
43,000
THERE ARE ALMOST HALF A MILLION
ACTIVE WECHAT USERS FOR EVERY SINGLE
STAFF MEMBER ON THE WECHAT TEAM!
38,775
30,641
27,492
24,160
WECHAT TEAM
ALL STAFF
27,690
17,446
10,692
6,194
2008
ALMOST 2,000
7,515
2009
2010
2011
2012
2013
CHINACHANNEL.CO
2014
2015
2016
2017 Q3
SOURCE: STATISTA / TENCENT
MANAGERIAL
TALENT
BOYS CLUB ONLY
CHINACHANNEL.CO
JAMES MITCHELL
CHIEF STRATEGY
OFFICER
PONY MA
CEO OF TENCENT
(马化腾)
MARTIN LAU
PRESIDENT OF TENCENT
(刘炽平)
ALLEN ZHANG (张小龙),
FOUNDER OF WECHAT
DOWSON TONG,
SENIOR EXECUTIVE
VP (汤道生)
MARK REN
COO OF TENCENT,
IMARK REN (任宇昕)
SOME WHITE GUY. NOT
SURE WHO HE IS ;-)
TENCENT HIGHER MANAGEMENT TEAM AT CUPERTINO AUG 2017
PONY MA马化腾
CO-FOUNDER & CEO
PONY IS VERY OFTEN COMPARED TO HIS NAMESAKE
JACK MA (NO RELATION) OF ALIBABA. THE 2 LEADER’S
OF CHINA’S LARGEST INTERNET COMPANIES HAVE
VERY DIFFERENT STYLES HOWEVER WITH PONY
KNOWN AS A LOW PROFILE ENTREPRENEUR COMPARED
TO JACK MA'S OUTGOING SHOWMANSHIP.
AVID GAMER PONY CAME FROM HUMBLE BEGINNINGS
(FATHER WAS A PORT MANAGER) GRADUATING FROM
SHENZHEN UNIVERSITY WITH A DEGREE IN COMPUTER
SCIENCE, HE IS ONE OF THE FIRST GENERATION OF
CHINA’S INTERNET ENTREPRENEURS.
STRATEGIC AND THOUGHTFUL, PONY HAS BEEN
PREVIOUSLY QUOTED AS SAYING STEVE JOBS WAS AN
INSPIRATION. HE IS CURRENTLY CHINA’S RICHEST MAN.
RANDOM FACT: HE MET HIS WIFE OVER TENCENT’S
INSTANT MESSAGING SERVICE QQ.
*BLOOMBERG BILLIONAIRES INDEX DEC 20TH 2017
AGE: 46
NET WORTH: $50.9 BILLION
MARTIN LAU 刘炽平
PRESIDENT
PRIOR TO JOINING TENCENT, MARTIN HELD
SENIOR POSITIONS AT MCKINSEY & GOLDMAN
SACHS WHERE HE HELPED HANDLE TENCENT’S
IPO.
MARTIN SPEAKS ENGLISH FLUENTLY HAVING
ATTENDED COLLEGE IN THE U.S. (UNIVERSITY
OF MICHIGAN) AND RECEIVED A MASTER OF
SCIENCE DEGREE IN ELECTRICAL ENGINEERING
FROM STANFORD UNIVERSITY WITH AN MBA
DEGREE FROM KELLOGG GRADUATE SCHOOL OF
MANAGEMENT.
AGE: 44
JOINED TENCENT: 2005
NET WORTH: $2.5 BILLION
A DEVOUT CHRISTIAN, AN AVID GAMER, MARTIN
IS FIRST AND FOREMOST A GREAT BUSINESS
ANALYST. HE KNOWS WHAT WARS TO FIGHT.
MARTIN SITS ON THE BOARD OF SEVERAL
OVERSEAS-LISTED MAINLAND COMPANIES, SUCH
AS TENCENT E-COMMERCE PARTNER JD.COM.
MARK REN 任宇昕
CHIEF OPERATING OFFICER
HAILING FROM LIAONING PROVINCE IN NORTH EAST OF
CHINA PRIOR TO TENCENT, MARK WORKED AT HUAWEI
TECHNOLOGIES.
HE WAS PROMOTED TO CHIEF OPERATING OFFICER OF
THE COMPANY IN MAY 2012
WHILE HE’S KNOWN FOR HAVING A VERY LOW-KEY
PERSONALITY MARK’S PERFORMANCE HAS BEEN
ANYTHING BUT LOW KEY. HE’S ONE OF THE COMPANY’S
MOST TRUSTED AND CAPABLE TALENTS.
MARK IS FAMED FOR GUIDING TENCENT’S GAMING
DIVISION TO ACHIEVE THE “DOUBLE 50%” I.E. INCOME
FROM THE GAMING ACCOUNTING FOR MORE THAN 50%
OF TENCENT’S REVENUE, AND TENCENT GAMES
ACCOUNTING FOR MORE THAN 50% OF THE CHINESE
INDUSTRY.
AGE: 43
JOINED TENCENT: 2000
IMAGE CREDIT:
DIGITAL AGE
JAMES MITCHELL
CHIEF STRATEGY OFFICER &
SENIOR EXECUTIVE VP
A RELATIVE NEWBIE TO THE HIGHER MANAGEMENT
TEAM (JOINED TENCENT IN 2011) JAMES IS
RESPONSIBLE FOR VARIOUS FUNCTIONS, INCLUDING
THE COMPANY’S STRATEGIC PLANNING AND
IMPLEMENTATION, INVESTOR RELATIONSHIPS, M&A AND
INVESTMENT ACTIVITY.
OXFORD UNIVERSITY GRADUATE JAMES PREVIOUSLY
WORKED IN INVESTMENT BANKING FOR 16 YEARS WITH
PRIOR ROLES AT GOLDMAN SACHS’ NEW YORK’S
RESEARCH TEAM, ANALYZING INTERNET,
ENTERTAINMENT AND MEDIA COMPANIES.
WHEN JAMES FIRST ARRIVED AT TENCENT HE DIDN’T
SPEAK THE LANGUAGE AND WASN’T A CHINA HAND.
WHAT HE DID BRING WAS A BANKER’S SENSIBILITIES
FOR RELATIONSHIPS AND POLITICS.
IMAGE CREDIT:
FRONTIER.CO.UK
AGE: 43
JOINED TENCENT: 2011
ALLEN ZHANG 张小龙
“THE FATHER OF WECHAT”
SENIOR EXECUTIVE VP
ALLEN ZHANG IS THE CLOSEST THING CHINA HAS
TO A STEVE JOBS LIKE TECH VISIONARY. UNLIKE
STEVE HOWEVER ALLEN SHUNS THE LIMELIGHT
AND RARELY APPEARS IN PUBLIC.
HE’S A LEGENDARY PRODUCT MANAGER THAT
SINGLE HANDEDLY CREATED ONE OF CHINA’S
MOST POPULAR EMAIL PRODUCTS FOXMAIL. HE
LATER CAME TO TRANSFORM CHINESE SOCIETY
WITH THE MESSAGING PLATFORM WECHAT.
WECHAT IS THE JEWEL IN THE CROWN OF
TENCENT’S EMPIRE, THE ENGINE WHICH
INDIRECTLY DRIVES MUCH OF ITS BUSINESS IN
CHINA. ITS CONTINUED ABILITY TO LEAD AND
INNOVATE IS DUE IN LARGE PART TO ALLEN.
AGE: 49
JOINED TENCENT: 2005
S Y LAU 刘胜义
SENIOR EXECUTIVE VP,
CHAIRMAN OF TENCENT ADVERTISING
SENG YEE LAU IS A CHINA ADVERTISING
INDUSTRY VETERAN. HE JOINED TENCENT IN 2006
HAVING PREVIOUSLY HELD SENIOR ROLES AT
MCCANN-ERICKSON, PUBLICIS AND BBDO CHINA.
HARVARD BUSINESS SCHOOL GRADUATE LAU, IS
AN ENTERTAINING SPEAKER IN BOTH ENGLISH
AND CHINESE, HE IS ALSO A PROLIFIC ARTICLE
CONTRIBUTOR.
PREVIOUSLY VICE PRESIDENT OF CHINA
ADVERTISING ASSOCIATION. CANNES LION
FESTIVAL “MEDIA PERSON OF THE YEAR 2015”
(FIRST CHINESE RECIPIENT).
SY PREVIOUSLY RAN THE ONLINE MEDIA GROUP
OF TENCENT NOW HEADED BY MARK REN.
AGE: 51
JOINED TENCENT: 2011
IMAGE CREDIT:
CAMPAIGN MIDDLE EAST
OTHER KEY HIGHER MANAGEMENT
DANIEL XU
许晨晔
DAVID
WALLERSTEIN
DOWSON TONG
汤道生
LU SHAN
JOHN LO
CO-FOUNDER
CHIEF
EXPLORATION
OFFICER
SENIOR VP
PRESIDENT OF
SOCIAL NETWORK
GROUP (SNG)
SENIOR EXECUTIVE
VICE PRESIDENT
CFO
CHIEF
INFORMATION
OFFICER
SENIOR EXECUTIVE
VICE PRESIDENT
CHAIRMAN OF
TENCENT MUSIC
ENTERTAINMENT
GROUP
CHINACHANNEL.CO
PRESIDENT OF
TECHNOLOGY AND
ENGINEERING
GROUP
SENIOR VICE
PRESIDENT
ZHANG YIMING
CEO OF TOUTIAO
(张一鸣)
NEIL SHEN
SEQUOIA CAPITAL
GLOBAL MANAGING
PARTNER (沈南鹏)
WANG XING
CEO OF
MEITUAN DIANPING
(王兴)
LEI JUN
FOUNDER OF
XIAOMI
(雷军)
PONY MA
CO-FOUNDER & CEO
TENCENT
(马化腾)
ZHANG LEI
FOUNDER OF HILLHOUSE CAPITAL
(张磊)
RICHARD LIU
FOUNDER OF JD
(刘强东)
SU HUA
FOUNDER &
CEO OF KUAI
(宿华)
YANG YUANQING
CEO OF LENOVO
(杨元庆)
DAVIS WANG
CEO & CO-FOUNDER
OF MOBIKE
(王晓峰)
CHEN SHENGQIANG
CEO OF JD FINANCIAL
(陈生强)
ALLEN ZHU
PARTNER, GSR VENTURES
(朱啸虎)
CHENG WEI,
FOUNDER & CEO OF DIDI CHUXING
(程维)
YAO JINBO
CEO OF 58.COM
(姚劲波)
ZHOU YUAN
FOUNDER OF ZHIHU
(周源)
WANG HUIWEN
SENIOR VP OF
MEITUAN DIANPING
(王慧文)
TENCENT STRATEGIC PARTNERS, WUZHEN SUMMIT, DEC 3RD 2017
CHINACHANNEL.CO
TENCENT & ALIBABA: SOME KEY AREAS OF COMPETITION
AREA
PAYMENTS
ECOMMERCE
SOCIAL
BROWSERS
VIDEO
RETAIL
CLOUD
TRAVEL
BIKE SHARING
ENTERPRISE
PRODUCTIVITY
MAPS
BANKING
O2O ON-DEMAND
TENCENT
ALIBABA
WECHAT PAY
ALIPAY
JD, VIPSHOP
TAOBAO, TMALL
WECHAT, QQ
WEIBO
QQ BROWSER
UC BROWSER
TENCENT VIDEO
YOUKU, TUDOU
YONGHUI, CARREFOUR
SUNING, HEMA
TENCENT CLOUD
ALI CLOUD
LY
(LY.COM)
FLIGGY
(ALITRIP.COM)
MOBIKE
OFO
WECHAT ENTERPRISE, TIM
DING TALK
TENCENT MAPS
AUTONAVI
WEBANK
MY BANK
MEITUAN DIANPING
KOUBEI / ELE.ME
(KOUBEI.COM, ELE.ME)
(PAY.WEIXIN.QQ.COM)
(JD.COM, VIP.COM)
(WEIXIN.QQ.COM, IM.QQ.COM)
(BROWSER.QQ.COM)
(V.QQ.COM)
(ALIPAY.COM)
(TAOBAO.COM TMALL.COM)
(WEIBO.COM)
(UCWEB.COM)
(YOUKU.COM, TUDOU.COM)
(YONGHUI.COM.CN, CARREFOUR.CN)
(CLOUD.TENCENT.COM)
(MOBIKE.COM/CN)
(SUNING.COM, FRESHHEMA.COM)
(ALIYUN.COM)
(OFO.SO)
(OFFICE.QQ.COM)
(MAP.QQ.COM)
(DINGTALK.COM)
(DITU.AMAP.COM)
(WEBANK.COM)
(MYBANK.CN)
(MEITUAN.COM, DIANPING.COM)
CHINACHANNEL.CO
TENCENT'S 2018 RETAIL INVESTMENT BLITZKRIEG
LAYING THE FOUNDATIONS FOR SMART RETAIL
INVESTMENT
DATE
LOGO
COMPANY
BUSINESS
CHINA
LOCATIONS
TENCENT
OWNERSHIP
INVESTMENT
AMOUNT
2017 DEC 15TH
YONGHUI
YONGHUI
SUPERMARKETS
580+
5%
$636 M
N/A
7%
$604 M
CLOTHES RETAIL
2018 JAN 15TH
VIP SHOP
VIP SHOP
2018 JAN 23RD
CARREFOUR
CARREFOUR
SUPERMARKETS
250+
2018 JAN 29TH
DALIAN WANDA
DALIAN
WANDA
COMMERCIAL PROPERTY,
MALLS, HOTELS
185+ MALLS
90 HOTELS
3RD LARGEST ECOMMERCE
PLAYER IN CHINA
UNDISCLOSED
4.12%
TENCENT HAVE BEEN EXTREMELY ACTIVE IN THE RETAIL SPACE IN THE FIRST MONTH OF 2018
$1.5 B
OTHERS
REVENUE & LOCATIONS
CHINACHANNEL.CO
TENCENT 2017 Q3 REVENUE
OTHERS: PRIMARILY
PAYMENTS & CLOUD
12.0 BILLION RMB
18%
SOCIAL NETWORKS
15.2 BILLION RMB
23%
17%
ONLINE
ADVERTISING
11.4 BILLION RMB
41%
CHINACHANNEL.CO
ONLINE GAMES
26.8 BILLION RMB
IEG:
OMG:
MIG:
SNG:
CDG:
WXG:
TEG:
INTERACTIVE ENTERTAINMENT
ONLINE MEDIA
MOBILE INTERNET
SOCIAL NETWORKING
CORPORATE DEVELOPMENT
WEIXIN (WECHAT)
TECHNOLOGY & ENGINEERING
PONY MA
MARK REN
ALLEN
ZHANG
DOWSON
TONG
IEG
OMG
SHAN LU
MARTIN LAU
MIG
CDG
WXG
TEG
SNG
18%
OTHERS
SOCIAL
NETWORKS
23%
41%
ONLINE
GAMES
ONLINE
ADS
17%
TENCENT REVENUE
SEGMENTS MATCHED
LOOSELY TO BUSINESS GROUPS
REVENUE COMPARISON
Q3 2017 BILLION USD
52.6
61%
43.7
YEARLY
INCREASE
47%
34%
27.8
61%
24.5
24%
17%
12%
APPLE
AMAZON
GOOGLE
MICROSOFT
10.3
9.8
FACEBOOK
TENCENT
CHINACHANNEL.CO
8.3
ALIBABA
PROFIT COMPARISON
Q3 2017 BILLION USD
146%
10.7
6.7
YEARLY
INCREASE
6.6
79%
69%
4.7
33%
19%
APPLE
16%
GOOGLE
0.3
MICROSOFT
2.7
2.6
TENCENT
ALIBABA
2%
AMAZON
FACEBOOK
CHINACHANNEL.CO
TENCENT REVENUE, PROFIT & COST OF REVENUE
PAST 9 QUARTERS MILLION RMB
65,210
56,606
49,552
43,864
40,388
35,691
30,441
33,529
31,995
28,300
26,590
24,109
18,560
11,014
12,661
7,445
7,164
1
2
COST OF REV
13,406
9,183
3
20,238
15,235
18,006
8
9
14,476
10,737
10,646
10,529
4
5
6
TENCENT REVENUE
18,231
7
NET PROFIT (ATTRIBUTED TO SHAREHOLDERS)
KEY PRODUCT INTRODUCTION: QQ
MESSAGING FOR CHINA’S YOUTH
LAUNCHED: FEB 1999
ACTIVE USERS: 843 MILLION
BG: SNG (SOCIAL NETWORK GROUP)
CORE PRODUCT TEAM: SHENZHEN
POSITIONING: YOUNG AND FUN
OFFICIAL WEBSITE: IM.QQ.COM
QQ IS THE ORIGINAL TENCENT SOCIAL PLATFORM. IT IS NO EXAGGERATION TO SAY THAT AT ONE STAGE
THE QQ DESKTOP MESSENGER WAS INSTALLED ON ALMOST EVERY COMPUTER IN CHINA. THE ICONIC QQ
HIGH PITCHED ‘BEEP, BEEP, BEEP’ SOUND DEFINED THE GENERATION OF CHINA’S EARLY PRE-MOBILE ERA
INTERNET. OVER THE PAST FEW YEARS IT HAS SUCCESSFULLY REBRANDED AND REPOSITIONED AS A
LIVELY AND VIBRANT MESSAGING APP FOR CHINA’S YOUTH.
KEY PRODUCT INTRODUCTION: WECHAT
THE 900 POUND GORILLA OF CHINA’S INTERNET
LAUNCHED: JAN 2011
ACTIVE USERS: 980 MILLION
BG: WXG (WEIXIN GROUP)
CORE PRODUCT TEAM: GUANGZHOU
POSITIONING: SUPER APP FOR EVERYTHING
OFFICIAL WEBSITE: WEIXIN.QQ.COM
WECHAT IS CHINA’S MOST FAMOUS INTERNET PRODUCT BY FAR AND WITH GOOD REASON. CHINESE SPEND
APPROXIMATELY 1/3 OF ALL THEIR TIME ON MOBILE IN WECHAT AND USE THE APP FOR EVERYTHING YOU
COULD IMAGINE. THE DECENTRALIZED WECHAT ECOSYSTEM ALLOWS USERS TO DO AND BUY ALL KINDS OF
SERVICES.
WECHAT & QQ MONTHLY ACTIVE USERS
QUARTERLY GROWTH OVER LAST 4 YEARS
MONTHLY ACTIVE USERS (MILLIONS)
815
808
848
829
820
815
832
843
860
853
877
762
899
877
806
846
889
937
963
980
860
850
843
15
16
17
868
697
650
600
549
355
396
438
468
500
272
1
2
3
4
5
6
7
8
9
10
11
12
13
14
TENCENT WAS FOUNDED IN THIS SMALL ROOM IN SHENZHEN.
NOV 11TH IS NOT ONLY THE DATE OF CHINA’S LARGEST SHOPPING
FESTIVAL, IT ALSO HAPPENS TO BE THE BIRTHDAY OF TENCENT. ON
NOVEMBER 11TH 1998,
1998
FOR THE PAST 9 YEARS THE TENCENT BUILDING IN CENTRAL
SHENZHEN WITH IT’S DISTINCTIVE PENGUIN LOGO ATOP HAS BEEN
THE HEAD QUARTERS.
2009
COMPLETED: AUG 2009
SIZE: 88,180 SQUARE METERS
HEIGHT: 193 METERS (39 FLOORS)
TENCENT IS IN THE PROCESS OF MOVING HEAD
OFFICES TO A NEW MORE MODERN, LARGER
BUILDING: BINHAI MANSION
2018
COMPLETED: LATE 2017
SIZE: 345,570 SQUARE METERS
HEIGHT: 248 METERS (50 FLOORS)
GUANGZHOU IS WHERE THE WECHAT TEAM ARE BASED.
THE OFFICES ARE LOW KEY SITUATED IN A LEAFY
INNOVATION PARK
PALO ALTO IS THE RELATIVELY SMALL,
MORE LAID BACK U.S. HEAD QUARTERS
BELLEVUE
(A.I. LABS)
BEIJING
THE U.S
PALO ALTO
(U.S HEAD OFFICE)
CHENGDU
SHANGHAI
(GAMING, HONOR
OF KINGS)
GUANGZHOU
CHINA
(WECHAT)
SHENZHEN
(HEAD QUARTERS)
KEY TENCENT OFFICE LOCATIONS
PARTS OF THIS REPORT ARE ADAPTED FROM KEYNOTE SPEECHES DELIVERED BY MATTHEW BRENNAN AT THE ALSMA
APAC REGIONAL CONFERENCE, NOV 2017 SIEM REAP & THE MADE BY CHINA CONFERENCE, DECEMBER 2017 COPENHAGEN.
MATTHEW BRENNAN
CO-FOUNDER OF CHINA CHANNEL
MATTHEW IS A WELL-KNOWN SPEAKER AND WRITER
ABOUT WECHAT AND TENCENT (CHINA'S LARGEST
INTERNET COMPANY). HIS OPINIONS ARE REGULARLY
FEATURED IN GLOBAL MEDIA: THE ECONOMIST, BBC,
THE FINANCIAL TIMES, FORBES, QUARTZ,
TECHCRUNCH, TECHINASIA, CAMPAIGN ASIA,
EMARKETER, ADAGE. MATTHEW'S COMPANY CHINA
CHANNEL ORGANIZES CHINA’S LARGEST WECHAT
MARKETING CONFERENCE SERIES FOR
INTERNATIONAL COMPANIES. HE WORKS PRIMARILY
WITH INTERNATIONAL BUSINESSES TO HELP FORM
AND IMPLEMENT THEIR WECHAT PLATFORM
STRATEGY. CO-HOST OF THE CHINA TECH TALK
PODCAST PRODUCED TOGETHER WITH CHINA'S
LARGEST ENGLISH LANGUAGE TECH MEDIA, MATTHEW
HAS BEEN BASED IN CHINA NOW FOR OVER 13+ YEARS.
FOR SPEAKING AVAILABILITY: INFO@CHINACHANNEL.CO
FOR MEDIA INQUIRIES: MEDIA@CHINACHANNEL.CO
LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN
TWITTER: @MBRENNANCHINA
TENCENT REPORT
A SHORT INTRODUCTION TO ASIA’S MOST IMPORTANT
AND LEAST UNDERSTOOD INTERNET COMPANY
PREPARED BY: MATTHEW BRENNAN & SAMIN SHA