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Tencent “slows down”, the Internet “changes sky”

  The financial report is a mirror to see the changes of the company, whether it is subtle or earth-shaking, it is all in it.
  On March 23, Internet giant Tencent released its fourth-quarter and full-year results for 2021. Compared with previous years, it has changed a lot.
  In terms of revenue, the fourth quarter of 2021 is 144.188 billion, an increase of 8% year-on-year; the annual revenue is 560.118 billion, a year-on-year increase of 16%. The net profit for the year was 224.82 billion yuan, a year-on-year increase of 41%, equivalent to a daily profit of 616 million yuan.
  Tencent is still a giant, and although its revenue is less than Alibaba’s 836.4 billion, it is equivalent to four and a half Baidu (124.5 billion).
  Tencent’s ability to make money is still very strong, and the income of its employees hit a new high. As of the end of last year, Tencent had 112,771 employees, an increase of 31.3%, and a total remuneration of 95.523 billion yuan, a year-on-year increase of 37.1%.
  Simple calculation, the per capita salary is about 850,000 yuan, and the monthly salary exceeds 70,000. Tencent remains one of the highest paying companies in the internet industry.
  You must know that there are still 600 million people in China with a monthly income of around 1,000 yuan, which is only 1% of the average monthly salary of Tencent employees. In the context of common prosperity, the high income of Tencent employees makes many people envy, jealous and hate.
  However, Tencent, the giant, has also begun to “slow down”.
  For example, under non-IFRS (excluding some factors unrelated to operations, such as pure investment income), Tencent’s net profit was 123.788 billion yuan, an increase of only 1% year-on-year, the lowest growth rate in the past decade.
  For another example, from the quarterly financial report, in the fourth quarter of 2021, Tencent achieved a net profit of 24.88 billion yuan, a year-on-year decrease of 25%. This is the second consecutive quarter that Tencent has experienced a single-quarter negative growth in net profit after the 2% decline in net profit in the third quarter.
  For another example, in terms of users, in the fourth quarter of last year, the number of monthly active users of WeChat and Wechat reached 1.268 billion, a year-on-year increase of 3.5%, and the growth was very slow; the number of monthly active users of QQ mobile terminal still showed a downward trend, only 552 million in the fourth quarter. , a decrease of 141 million from 694 million in the first quarter of 2020.
  Tencent’s slowdown is influenced by the general environment and the law of the development of the Internet industry, which has a lot to do with Tencent’s active adjustment.
  From the perspective of revenue structure, in the fourth quarter, Tencent’s financial technology and enterprise service business revenue was 48 billion yuan, an increase of 25%. Tencent’s To B business surpassed online games for the first time and became the company’s largest source of income.
  This may be a good thing for Tencent. In the past few years, Tencent’s game business has been criticized. “Honor of Kings”, which has contributed the most to Tencent’s game revenue, has been described by the media as “spiritual opium”, “pesticide” and so on.
  In the past few years, although Tencent is a very diversified company, it has been unable to tear off the label of “game company”.
  Tencent also disclosed in its financial report that it recorded a net other income of 149.5 billion yuan last year, which was mainly generated from the disposal of equity in several investment companies, including 78.2 billion yuan from the disposal of JD.com shares.
  Tencent is anxious to dispose of the shares of the invested companies. According to external analysis, this is an exit action made by Tencent under the policy proposition of “strengthening anti-monopoly and preventing the disorderly expansion of capital”.

  Ma Huateng also seemed calm about the slowdown in growth. He said that 2021 was a year full of challenges. Tencent actively embraced changes and implemented measures to strengthen the company’s long-term sustainable development, but it affected the slowdown in revenue growth. Despite the financial impact, Tencent continues to make strategic progress in its business.
  Ma Huateng said that China’s Internet industry is structurally moving towards a healthier model, returning to its origins centered on user value, technological innovation and social responsibility.
  Ma Huateng’s statement reflects Tencent’s changes in the past year, and it is also a reflection of the “change” of China’s Internet industry.
  In the interpretation of Tencent’s official financial report, Tencent said that it has become “heavy”, and the intention behind it is self-evident. Tencent is trying to move closer to the real economy.
  For example, Tencent has positioned itself as a “digital assistant”, and “helping the real economy” has become Tencent’s new brand promise.
  In addition, in April 2021, Tencent once again launched a strategic upgrade, proposed the strategy of “sustainable social value innovation”, established a “sustainable social value business unit”, and invested 100 billion yuan to help common prosperity.
  Tencent also said: “Tencent will pay more attention to long-term value than short-term profits.”
  At the Tencent employee conference at the end of last year, Ma Huateng said: “Tencent is just an ordinary company during the great development of the country and society, and it is under the wave of national development. The beneficiaries are not basic services and can be replaced at any time. In the future, when Tencent serves the country and society, it must be not absent, in position, and not offside, and be a good assistant and a good connector.”
  Tencent The change seems to be unexpected, but in fact it is reasonable. The two swords of “anti-monopoly” and “preventing the disorderly expansion of capital” hang high, and Tencent has to make itself “smaller” and slower.
  In November last year, some media reported that in the list of anti-monopoly cases published on the website of the State Administration for Market Regulation, the most “Tencent” and “Ali” cases belonged to.
  The environment has changed, the Internet is also shuffling, and Ma Huateng and Tencent, which he is in charge, are constantly adjusting. From the latest financial report, Tencent has changed a lot.

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