Original title: Tencent’s 2021 financial technology and enterprise service revenue is 172.2 billion, a year-on-year increase of 34%
On March 24, Tencent Holdings (HK.00700) released its 2021 annual results and fourth quarter results, which disclosed the performance of financial technology and enterprise services.
In 2021, Tencent Holdings achieved revenue of 560.118 billion yuan, an increase of 16% year-on-year, and exceeded 500 billion yuan for the first time; however, Tencent’s net profit (Non-IFRS) for the whole year was 123.788 billion yuan, a year-on-year increase of 1%, the lowest increase in the company’s net profit in ten years. one year. In the fourth quarter, Tencent’s net profit was 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 net profit growth after the third quarter’s net profit fell by 2%.
In terms of financial technology and enterprise services, Tencent’s annual revenue increased by 34% year-on-year to RMB 172.2 billion, accounting for 31% of total revenue. The financial report explained that this reflected an increase in the amount of commercial payments. The rapid year-on-year growth in enterprise service revenue was due to the digitization of traditional industries and the video-based trend of the Internet industry, as well as the contribution of the enterprise service revenue from the merger of Yiche in November 2020.
The cost of revenue for the financial technology and enterprise services business increased by 32% year-on-year to RMB 120.8 billion. The financial report explained that this reflected the increase in transaction costs due to the increase in payment amount, and the continued investment in cloud computing professionals and operations.
In the fourth quarter, revenue from financial technology and enterprise services business increased by 25% year-on-year to RMB 48 billion. Tencent’s To B business surpassed online games for the first time and became the company’s largest source of revenue.
According to the official website, Tencent Financial Technology, formerly known as Tenpay, is Tencent’s financial technology business, a comprehensive service platform that provides mobile payment and financial services. Specifically, it includes payment platforms (WeChat Payment, QQ Wallet, Tenpay, WeChat Hong Kong Wallet), wealth management (Tencent Wealth Management), securities platforms (Tencent Micro Securities, Tencent Selected Stocks), corporate finance (Tenpay Commercial Enterprises) Payment, invoice finance and taxation, Pratt & Whitney platform), livelihood services (WeChat credit card repayment, Tencent mobile phone recharge, Tencent Weijia credit card, Tencent blockchain), etc.
Prior to March 17, the People’s Bank of China officially approved the application for administrative licenses for the establishment of financial holding companies by China CITIC Group and Beijing Financial Holdings, and issued the first batch of financial holding company licenses to the two companies. Experts believe that with the issuance of the first batch of financial holding company licenses,It is expected that in the future, relevant companies will apply for financial holding licenses, and financial holding companies will also be further regulated.
Regarding financial supervision, Liu Chiping said that Tencent will adhere to regulatory compliance requirements and continue to pay attention to risk control. “We have always been active in cooperation with financial institutions, support the sustainable development of financial business, and will continue to adhere to the bottom line in the future. At present, financial regulatory requirements are necessary for the entire industry. We will actively cooperate with regulatory requirements and believe that regulatory measures will affect the industry. Long-term healthy development has a driving effect.”
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Responsible editor: Li Linlin