Understanding the Market | Tencent opens nearly 5% higher, first-quarter financial report greatly exceeds expectations, video account user engagement increases by 80%

Tencent opened nearly 5% higher, and as of the time of writing, it is up 4.77% to HKD 400, with a turnover of HKD 21.93 billion. On the news front, Tencent released its first-quarter financial report for this year. The data shows that Tencent's first-quarter revenue was RMB 159.5 billion, a year-on-year increase of 6.3% and a quarter-on-quarter increase of 3%; net profit was RMB 41.9 billion, a year-on-year increase of 62% and a quarter-on-quarter increase of 55%; adjusted net profit was RMB 50.27 billion, a year-on-year increase of 54%. The company stated that it will focus on returning surplus capital to shareholders, increase share repurchases, execute a plan to repurchase shares worth over HKD 100 billion by 2024, enhance dividends, and continue to invest in AI technology, improve platforms, and produce high-value content. According to the financial report, revenue from online advertising business was RMB 26.506 billion, a year-on-year increase of 26.44%. Tencent mentioned that it mainly benefited from the increase in advertising revenue brought by the rapid development of Video Number, Mini Programs, Official Accounts, WeChat Search, and the improvement in revenue quality driven by AI technology. In addition, the total user time of Video Number increased by over 80% year-on-year, expanding product categories and incentivizing more content creators to participate in live streaming to strengthen the ecosystem of Video Number live streaming