Tencent Holdings released its fourth quarter and full-year financial report for 2021 today. Tencent’s revenue in the fourth quarter was 144.2 billion yuan, and the market expected it to be 145.3 billion yuan, an increase of 8% year-on-year; net profit (Non-IFRS) was 24.88 billion yuan, a year-on-year decline. 25%, and net profit has declined for two consecutive quarters.

For the whole year of 2021, Tencent’s revenue was 560.12 billion yuan, a year-on-year increase of 16%; its net profit (Non-IFRS) was 123.788 billion yuan, a year-on-year increase of 1%, which is also close to The lowest net profit growth in a decade.

Ma Huateng: China’s Internet is moving towards a healthier model

In the financial report, Tencent CEO Ma Huateng said that 2021 will be a challenging year. “We have embraced change and implemented initiatives to strengthen the company’s long-term sustainability, but this has slowed revenue growth.”

He noted that despite the financial impact, However, we continued to make strategic progress in our business, including popularizing the use of our enterprise software and efficient office tools, increasing the content creation and viewing volume of our video accounts, and expanding our game business in the international market. “We believe 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. We are actively adapting to the new environment, reducing costs and increasing efficiency, focusing on key strategic areas, Strive for long-term sustainable growth.”

In terms of segmented revenue, the revenue of the value-added services business for the year ended December 31, 2021 increased by 10% year-on-year to 291.6 billion yuan, the game revenue in the local market increased by 6% to 128.8 billion yuan, driven by games such as “Honor of Kings”, “Call of Duty Mobile Game” and “Tianya Mingyue Sword Mobile Game”, and partly by the revenue of “DnF” and “Peace Elite” The reduction is offset.

International market game revenue increased by 31% to RMB 45.5 billion, mainly due to games such as “PUBG Mobile”, “Valorant”, “Wild Brawl” and “Clash of Clans” Strong performance.

Tencent said that it has taken a series of comprehensive measures to protect minors for games in the local market, which directly (reduce consumption of minors) and indirectly ( R&D resources focused on the implementation of new initiatives) impacted revenue growth.

on the video account live service, video paid membership serviceSocial network revenue rose 8% to RMB 117.3 billion, driven by revenue contribution from the merger of Huya in April last year.

In the financial report, Tencent also mentioned that it has achieved remarkable results in restricting the playing time and consumption of minors. In the fourth quarter of last year, the total time spent by minors decreased by 88% year-on-year, accounting for 0.9% of the total game time in Tencent’s local market. The total turnover of minors decreased by 73% year-on-year, accounting for 1.5% of the total turnover of games in Tencent’s local market.

The income from disposal of JD.com shares is 78.2 billion yuan

The financial report also shows that as of December 31, 2021, Tencent has 112,700 employees ( 85,900 in 2020). Tencent said that the number of employees employed by the group is subject to change from time to time, and employee remuneration is also determined in accordance with industry practices. The company regularly reviews the employee’s remuneration policy and overall remuneration. In addition to pensions and in-house training courses, discretionary bonuses, award shares and share options may be awarded based on individual performance assessments.

As of December 31 last year, Tencent’s total annual remuneration cost was 95.523 billion yuan, and in 2020 it was 69.638 billion yuan, a year-on-year increase of about 37%.

Tencent also disclosed that it has disposed of JD.com shares with a gain of 78.2 billion yuan. According to the financial report, Tencent recorded other net income of RMB 149.5 billion for the year ended December 31, 2021, mainly due to non-IFRS adjustment items, such as the deemed disposal and disposal of certain investment companies. Net income ( Including the deemed disposal of JD. offset by impairment allowances made.