Tencent CEO Exudes Confidence in China’s Economic Future
Pony Ma Huateng, the enigmatic founder and CEO of Tencent Holdings, has expressed unwavering optimism about China’s economic prospects and his company’s growth in overseas video game markets. In a rare public address to employees, Ma shared his vision for the tech giant’s future, highlighting its resilience and entrepreneurial spirit.
A Tech Behemoth in the Making
Ma’s low profile belies his remarkable achievement in building Tencent from scratch into a media, video gaming, and payment services powerhouse. His confidence in China’s economic resilience echoes his praise for Beijing’s economic policies, which he expressed in a recent commentary published by the People’s Daily.
Gaming Operations Shine
In reviewing Tencent’s business empire, Ma gave a thumbs-up to the company’s gaming operations, which have performed exceptionally well both domestically and globally. He attributed this success to improvements in the organisational structure and spirit of Tencent’s Interactive Entertainment Group, which operates the video gaming business.
Restructuring for Success
Tencent recently consolidated its TiMi Studio Group, the creator of the blockbuster mobile game Honour of Kings, into four major sub-studios. This move is expected to further boost the company’s gaming segment, which has traditionally been its strongest revenue driver.
AI Development and Innovation
Ma emphasized the importance of building up computing power for artificial intelligence (AI) development, which will enable Tencent to optimise its product offerings. He also announced plans to roll out AI agents for key products, including WeChat and the QQ instant messaging app and web browser.
WeChat’s E-commerce Ambitions
Ma expressed support for WeChat’s efforts to develop more innovations, such as using its social capabilities to serve as an ecological connector for e-commerce. This move is expected to further cement WeChat’s position as a super app.
Market Performance
Tencent’s Hong Kong-listed stock price surged 2.5 per cent on Tuesday, solidifying its position as China’s most valuable tech company, with a market cap of US$450 billion. Despite a 40 per cent decline from its peak in early 2021, the company reported an 8 per cent revenue increase to 167.2 billion yuan (US$22.8 billion) during the third quarter of 2024, with profit jumping 47 per cent to 53.2 billion yuan.
A Bright Future Ahead
Ma’s upbeat assessment of Tencent’s prospects is a testament to the company’s talent, technology, and market demand. As he encouraged employees to work together to overcome future challenges, it’s clear that Tencent is poised for continued growth and success.
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