$30 off During Our Annual Pro Sale. View Details »

Understanding Tencent

Understanding Tencent

Adapted from keynote speeches delivered by Matthew Brennan at the ALSMA APAC regional conference, Nov 2017 Siem Reap & the 'Made by China' conference, Dec 2017 Copenhagen.

Matthew Brennan

April 21, 2018
Tweet

More Decks by Matthew Brennan

Other Decks in Technology

Transcript

  1. UNDERSTANDING TENCENT
    ASIA’S MOST IMPORTANT AND LEAST
    UNDERSTOOD INTERNET COMPANY
    DELIVERED BY: MATTHEW BRENNAN

    View Slide

  2. MATTHEW BRENNAN
    CO-FOUNDER OF CHINA CHANNEL
    MATTHEW IS A WELL-KNOWN SPEAKER AND WRITER
    ABOUT WECHAT AND TENCENT (CHINA'S LARGEST
    INTERNET COMPANY). HIS OPINIONS ARE REGULARLY
    FEATURED IN GLOBAL MEDIA: THE ECONOMIST, BBC,
    THE FINANCIAL TIMES, FORBES, QUARTZ,
    TECHCRUNCH, TECHINASIA, CAMPAIGN ASIA,
    EMARKETER, ADAGE. MATTHEW'S COMPANY CHINA
    CHANNEL ORGANIZES CHINA’S LARGEST WECHAT
    MARKETING CONFERENCE SERIES FOR
    INTERNATIONAL COMPANIES. HE WORKS PRIMARILY
    WITH INTERNATIONAL BUSINESSES TO HELP FORM
    AND IMPLEMENT THEIR WECHAT PLATFORM
    STRATEGY. CO-HOST OF THE CHINA TECH TALK
    PODCAST PRODUCED TOGETHER WITH CHINA'S
    LARGEST ENGLISH LANGUAGE TECH MEDIA, MATTHEW
    HAS BEEN BASED IN CHINA NOW FOR OVER 13+ YEARS.
    PARTS OF THIS REPORT ARE ADAPTED FROM KEYNOTE SPEECHES DELIVERED BY MATTHEW BRENNAN AT THE ALSMA
    APAC REGIONAL CONFERENCE, NOV 2017 SIEM REAP & THE MADE BY CHINA CONFERENCE, DECEMBER 2017 COPENHAGEN.
    FOR SPEAKING AVAILABILITY: [email protected]
    FOR MEDIA INQUIRIES: [email protected]
    LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN
    TWITTER: @MBRENNANCHINA

    View Slide

  3. GROUP STRUCTURE
    7 CORE GROUPS
    CHINACHANNEL.CO

    View Slide

  4. TENCENT’S 7 CORE BUSINESS GROUPS
    CHINACHANNEL.CO
    WXG
    IEG OMG CDG
    SNG
    MIG TEG
    MARK REN
    PONY MA
    MARTIN LAU
    DOWSON
    TONG
    ALLEN
    ZHANG SHAN LU
    INTERACTIVE ENTERTAINMENT
    ONLINE MEDIA
    MOBILE INTERNET
    SOCIAL NETWORKING
    CORPORATE DEVELOPMENT
    WEIXIN (WECHAT)
    TECHNOLOGY & ENGINEERING
    IEG:
    OMG:
    MIG:
    SNG:
    CDG:
    WXG:
    TEG:

    View Slide

  5. HEAD: MARK REN
    @TENCENT SINCE 2000
    FOUNDED AUG
    2003,
    CURRENTLY
    CONTRIBUTES
    AROUND 41%
    OF ALL
    REVENUE
    FOUNDED MAR
    2012, BIGGEST
    ANIMATION &
    COMICS
    PLATFORM IN
    CHINA
    GAME.QQ.COM AC.QQ.COM
    FOUNDED SEP 2013,
    MERGED WITH SDO
    LITERATURE IN MAR
    2015, RECENTLY SPUN
    OUT WITH
    SUCCESSFUL HONG
    KONG IPO
    WWW.YUEWEN.COM
    FOUNDED SEP
    2015, FOCUS ON
    TRADITIONAL
    MOVIES
    PICTURES.QQ.COM
    CHINA’S NO.1
    E-SPORT
    PLATFORM
    LAUNCHED
    DEC 2016
    ESPORTS.QQ.COM
    TENCENT GAMES CHINA LITERATURE TENECENT COMIC TENCENT PICTURES TENCENT ESPORTS
    IEG: INTERACTIVE
    ENTERTAINMENT GROUP
    KEY DIVISIONS + PRODUCTS
    SHENZHEN
    BEIJING
    SHANGHAI
    CHENGDU
    IEG STAFF GEOGRAPHICAL BREAKDOWN:
    *BASED ON TECENT HR HIRING NEEDS DATA 2016

    View Slide

  6. OMG: ONLINE
    MEDIA GROUP
    KEY DIVISIONS + PRODUCTS
    HEAD: MARK REN
    TOOK OVER OMG IN MAR 2017
    FOUNDED AUG
    2003, THE NO.1
    TRADITIONAL
    NEWS PORTAL
    IN CHINA
    LAUNCHED APR
    2011, NOW THE
    NO.1 VIDEO
    PLATFORM IN
    CHINA
    NEWS.QQ.COM V.QQ.COM
    PERSONALIZED
    NEWS APP
    LAUNCHED AUG
    2015 TO
    COMPETE WITH
    TOUTIAO (DAILY
    HEADLINE)
    KUAIBAO.QQ.COM
    BRAND ADS
    PLATFORM
    LAUNCHED IN
    OCT 2011
    TONG.QQ.COM
    FOUNDED SEP
    2015, WITH THE
    FOCUS ON
    ONLINE
    MOVIES &
    DRAMAS
    FAILED TWITTER
    LIKE SOCIAL
    PLATFORM
    SHUTTERED IN
    2014.
    T.QQ.COM
    FORMER HEAD: SY LAU
    @TENCENT SINCE 2006
    TENCENT NEWS QUICK NEWS** TENCENT VIDEO PENGUIN PICTURES TONG TENCENT MICROBLOG
    SHENZHEN
    BEIJING
    SHANGHAI
    GUANGZHOU
    OMG STAFF GEOGRAPHICAL BREAKDOWN:
    *BASED ON TECENT HR HIRING NEEDS DATA 2016
    ** OUR TRANSLATION
    NONE FOUND

    View Slide

  7. MIG: MOBILE
    INTERNET GROUP
    KEY DIVISIONS + PRODUCTS
    HEAD: MARK REN
    TOOK OVER MIG IN JAN 2013
    THE NO.1
    MOBILE
    SECURITY APP
    IN CHINA.
    RELEASED SEP
    2010. IOS
    INTEGRATION
    SEP 2016
    THE NO.1
    ANDROID APP
    STORE IN
    CHINA
    LAUNCHED IN
    SEP 2011
    M.QQ.COM SJ.QQ.COM
    NO.2 MOBILE
    BROWSER IN
    CHINA. MOBILE
    VERSION
    LAUNCHED
    JUNE 2010
    BROWSER.QQ.COM
    LAUNCHED FEB
    2010. OPEN
    PLATFORM FOR
    DEVELOPERS AND
    BUSINESS TO
    WORK WITHIN
    THE TENCENT
    ECOSYSTEM
    OPEN.QQ.COM
    TOP 3 MAP
    APPLICATION
    IN CHINA.
    RELEASED
    DEC 2013
    LAUNCHED IN
    MAR 2015 AS AN
    EXPERIMENTAL
    PROJECT ON
    MOBILE OS.
    SHUT DOWN
    JUN 2017
    BBS.TOS.CN
    MAP.QQ.COM
    MYAPP TENCENT MAP OPEN PLATFORM TENCENT OS
    MOBILE MANGER QQ BROWSER
    SHENZHEN
    BEIJING
    GUANGZHOU
    CHENGDU
    MIG STAFF GEOGRAPHICAL BREAKDOWN:
    *BASED ON TECENT HR HIRING NEEDS DATA 2016

    View Slide

  8. HEAD: DOWSON TONG
    @TENCENT SINCE 2005
    THE ORIGINAL
    TENCENT
    PRODUCT. THE
    INSTANT
    MESSENGER
    THAT STARTED
    IT ALL
    IM.QQ.COM QZONE.QQ.COM Y.QQ.COM
    SNG: SOCIAL
    NETWORK GROUP
    KEY DIVISIONS + PRODUCTS
    SHENZHEN
    BEIJING
    SHANGHAI
    CHENGDU
    SNG STAFF GEOGRAPHICAL BREAKDOWN:
    *BASED ON TECENT HR HIRING NEEDS DATA 2016
    NOW.QQ.COM YOUTU.QQ.COM CLOUD.TENCENT.COM
    QQ IM Q ZONE QQ MUSIC NOW LIVE STREAM TENCENT YOUTU LAB TENCENT CLOUD
    SOCIAL
    NETWORK
    FOUNDED 2005,
    USERS CAN
    BLOG, STORE
    PHOTOS,
    MUSIC, AND
    VIDEOS.
    ONE OF
    CHINA’S
    MARKET
    LEADING
    MUSIC APPS
    LIVE
    STREAMING
    PLATFORM
    LAUNCHED IN
    JUN 2015
    FOUNDED IN
    2012,
    SPECIALIZES
    IN FACIAL
    AND VOICE
    RECOGNITION
    TECH
    CLOUD
    COMPUTING
    DIVISION

    View Slide

  9. CDG: CORPORATE
    DEVELOPMENT GROUP
    KEY DIVISIONS + PRODUCTS
    SHENZHEN
    BEIJING
    SHANGHAI
    GUANGZHOU
    CDG STAFF GEOGRAPHICAL BREAKDOWN:
    *BASED ON TECENT HR HIRING NEEDS DATA 2016
    CHENGDU
    FOUNDED SEPT 2015,
    UNIFIED TENCENT’S
    PAYMENT PLATFORMS
    AND FINANCIAL
    RELATED PRODUCTS
    AND SERVICES
    FITGROUP.COM
    FOUNDED MAY 2015,
    UNIFIED ALL
    PERFORMANCE BASED
    AD PLATFORMS
    ACROSS TENCENT,
    SEE BELOW
    E.QQ.COM
    ONE OF
    SEVERAL
    INVESTMENT
    UNITS AT
    TENCENT
    HEAD: MARTIN LAU
    @TENCENT SINCE 2005
    NONE FOUND
    SOCIAL ADS FINANCIAL TECH INVESTMENT

    View Slide

  10. QQ MAIL
    LAUNCHED IN JAN 2011, IT HAS
    BECOME CHINA’S DOMINANT SOCIAL
    NETWORK AND THE JEWEL IN THE
    CROWN OF TENCENT’S EMPIRE
    WEIXIN.QQ.COM
    CHINA’S MOST POPULAR
    EMAIL SERVICE
    LAUNCHED 2002
    MAIL.QQ.COM
    HEAD: ALLEN ZHANG
    @TENCENT SINCE 2005
    SHENZHEN
    BEIJING
    GUANGZHOU
    SHANGHAI
    CHENGDU
    WXG STAFF GEOGRAPHICAL BREAKDOWN:
    *BASED ON TECENT HR HIRING NEEDS DATA 2016
    WXG: WEIXIN
    (WECHAT) GROUP
    KEY DIVISIONS + PRODUCTS
    WECHAT

    View Slide

  11. HEAD: SHAN LU
    @TENCENT SINCE 2005
    COMPREHENSIVE DATA PLATFORM INCLUDING
    ANALYTICS FOR WEBITES, APPS, MINI PROGRAMS
    AND HTML5
    FOUNDED IN APR 2016 WITH FOCUS ON
    COMPUTER VISION, VOICE
    RECOGNITION, NATURAL LANGUAGE
    PROCESSING AND MACHINE LEARNING
    BIGDATA.QQ.COM AI.TENCENT.COM
    SHENZHEN BEIJING
    TEG STAFF GEOGRAPHICAL BREAKDOWN:
    *BASED ON TECENT HR HIRING NEEDS DATA 2016
    TEG: TECHNOLOGY &
    ENGINEERING GROUP
    KEY DIVISIONS + PRODUCTS
    TENCENT BIG
    DATA
    TENCENT AI
    LABS

    View Slide

  12. TENCENT EMPLOYEES
    CHINACHANNEL.CO
    6,194
    7,515
    10,692
    17,446
    24,160
    27,492 27,690
    30,641
    38,775
    43,000
    2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q3
    SOURCE: STATISTA / TENCENT
    ALMOST 2,000
    WECHAT TEAM
    ALL STAFF
    THERE ARE ALMOST HALF A MILLION
    ACTIVE WECHAT USERS FOR EVERY SINGLE
    STAFF MEMBER ON THE WECHAT TEAM!

    View Slide

  13. MANAGERIAL
    TALENT
    BOYS CLUB ONLY
    CHINACHANNEL.CO

    View Slide

  14. ALLEN ZHANG (张小龙),
    FOUNDER OF WECHAT
    DOWSON TONG,
    SENIOR EXECUTIVE
    VP (汤道生)
    JAMES MITCHELL
    CHIEF STRATEGY
    OFFICER
    MARK REN
    COO OF TENCENT,
    IMARK REN (任宇昕)
    PONY MA
    CEO OF TENCENT
    (马化腾)
    MARTIN LAU
    PRESIDENT OF TENCENT
    (刘炽平)
    SOME WHITE GUY. NOT
    SURE WHO HE IS ;-)
    TENCENT HIGHER MANAGEMENT TEAM AT CUPERTINO AUG 2017

    View Slide

  15. PONY MA马化腾
    CO-FOUNDER & CEO
    PONY IS VERY OFTEN COMPARED TO HIS NAMESAKE
    JACK MA (NO RELATION) OF ALIBABA. THE 2 LEADER’S
    OF CHINA’S LARGEST INTERNET COMPANIES HAVE
    VERY DIFFERENT STYLES HOWEVER WITH PONY
    KNOWN AS A LOW PROFILE ENTREPRENEUR COMPARED
    TO JACK MA'S OUTGOING SHOWMANSHIP.
    AVID GAMER PONY CAME FROM HUMBLE BEGINNINGS
    (FATHER WAS A PORT MANAGER) GRADUATING FROM
    SHENZHEN UNIVERSITY WITH A DEGREE IN COMPUTER
    SCIENCE, HE IS ONE OF THE FIRST GENERATION OF
    CHINA’S INTERNET ENTREPRENEURS.
    STRATEGIC AND THOUGHTFUL, PONY HAS BEEN
    PREVIOUSLY QUOTED AS SAYING STEVE JOBS WAS AN
    INSPIRATION. HE IS CURRENTLY CHINA’S RICHEST MAN.
    RANDOM FACT: HE MET HIS WIFE OVER TENCENT’S
    INSTANT MESSAGING SERVICE QQ. AGE: 46
    NET WORTH: $50.9 BILLION
    *BLOOMBERG BILLIONAIRES INDEX DEC 20TH 2017

    View Slide

  16. MARTIN LAU 刘炽平
    PRESIDENT
    PRIOR TO JOINING TENCENT, MARTIN HELD
    SENIOR POSITIONS AT MCKINSEY & GOLDMAN
    SACHS WHERE HE HELPED HANDLE TENCENT’S
    IPO.
    MARTIN SPEAKS ENGLISH FLUENTLY HAVING
    ATTENDED COLLEGE IN THE U.S. (UNIVERSITY
    OF MICHIGAN) AND RECEIVED A MASTER OF
    SCIENCE DEGREE IN ELECTRICAL ENGINEERING
    FROM STANFORD UNIVERSITY WITH AN MBA
    DEGREE FROM KELLOGG GRADUATE SCHOOL OF
    MANAGEMENT.
    A DEVOUT CHRISTIAN, AN AVID GAMER, MARTIN
    IS FIRST AND FOREMOST A GREAT BUSINESS
    ANALYST. HE KNOWS WHAT WARS TO FIGHT.
    MARTIN SITS ON THE BOARD OF SEVERAL
    OVERSEAS-LISTED MAINLAND COMPANIES, SUCH
    AS TENCENT E-COMMERCE PARTNER JD.COM.
    AGE: 44
    JOINED TENCENT: 2005
    NET WORTH: $2.5 BILLION

    View Slide

  17. MARK REN 任宇昕
    CHIEF OPERATING OFFICER
    HAILING FROM LIAONING PROVINCE IN NORTH EAST OF
    CHINA PRIOR TO TENCENT, MARK WORKED AT HUAWEI
    TECHNOLOGIES.
    HE WAS PROMOTED TO CHIEF OPERATING OFFICER OF
    THE COMPANY IN MAY 2012
    WHILE HE’S KNOWN FOR HAVING A VERY LOW-KEY
    PERSONALITY MARK’S PERFORMANCE HAS BEEN
    ANYTHING BUT LOW KEY. HE’S ONE OF THE COMPANY’S
    MOST TRUSTED AND CAPABLE TALENTS.
    MARK IS FAMED FOR GUIDING TENCENT’S GAMING
    DIVISION TO ACHIEVE THE “DOUBLE 50%” I.E. INCOME
    FROM THE GAMING ACCOUNTING FOR MORE THAN 50%
    OF TENCENT’S REVENUE, AND TENCENT GAMES
    ACCOUNTING FOR MORE THAN 50% OF THE CHINESE
    INDUSTRY.
    IMAGE CREDIT:
    DIGITAL AGE
    AGE: 43
    JOINED TENCENT: 2000

    View Slide

  18. JAMES MITCHELL
    CHIEF STRATEGY OFFICER &
    SENIOR EXECUTIVE VP
    A RELATIVE NEWBIE TO THE HIGHER MANAGEMENT
    TEAM (JOINED TENCENT IN 2011) JAMES IS
    RESPONSIBLE FOR VARIOUS FUNCTIONS, INCLUDING
    THE COMPANY’S STRATEGIC PLANNING AND
    IMPLEMENTATION, INVESTOR RELATIONSHIPS, M&A AND
    INVESTMENT ACTIVITY.
    OXFORD UNIVERSITY GRADUATE JAMES PREVIOUSLY
    WORKED IN INVESTMENT BANKING FOR 16 YEARS WITH
    PRIOR ROLES AT GOLDMAN SACHS’ NEW YORK’S
    RESEARCH TEAM, ANALYZING INTERNET,
    ENTERTAINMENT AND MEDIA COMPANIES.
    WHEN JAMES FIRST ARRIVED AT TENCENT HE DIDN’T
    SPEAK THE LANGUAGE AND WASN’T A CHINA HAND.
    WHAT HE DID BRING WAS A BANKER’S SENSIBILITIES
    FOR RELATIONSHIPS AND POLITICS.
    IMAGE CREDIT:
    FRONTIER.CO.UK
    AGE: 43
    JOINED TENCENT: 2011

    View Slide

  19. ALLEN ZHANG 张小龙
    “THE FATHER OF WECHAT”
    SENIOR EXECUTIVE VP
    ALLEN ZHANG IS THE CLOSEST THING CHINA HAS
    TO A STEVE JOBS LIKE TECH VISIONARY. UNLIKE
    STEVE HOWEVER ALLEN SHUNS THE LIMELIGHT
    AND RARELY APPEARS IN PUBLIC.
    HE’S A LEGENDARY PRODUCT MANAGER THAT
    SINGLE HANDEDLY CREATED ONE OF CHINA’S
    MOST POPULAR EMAIL PRODUCTS FOXMAIL. HE
    LATER CAME TO TRANSFORM CHINESE SOCIETY
    WITH THE MESSAGING PLATFORM WECHAT.
    WECHAT IS THE JEWEL IN THE CROWN OF
    TENCENT’S EMPIRE, THE ENGINE WHICH
    INDIRECTLY DRIVES MUCH OF ITS BUSINESS IN
    CHINA. ITS CONTINUED ABILITY TO LEAD AND
    INNOVATE IS DUE IN LARGE PART TO ALLEN.
    AGE: 49
    JOINED TENCENT: 2005

    View Slide

  20. S Y LAU 刘胜义
    SENIOR EXECUTIVE VP,
    CHAIRMAN OF TENCENT ADVERTISING
    SENG YEE LAU IS A CHINA ADVERTISING
    INDUSTRY VETERAN. HE JOINED TENCENT IN 2006
    HAVING PREVIOUSLY HELD SENIOR ROLES AT
    MCCANN-ERICKSON, PUBLICIS AND BBDO CHINA.
    HARVARD BUSINESS SCHOOL GRADUATE LAU, IS
    AN ENTERTAINING SPEAKER IN BOTH ENGLISH
    AND CHINESE, HE IS ALSO A PROLIFIC ARTICLE
    CONTRIBUTOR.
    PREVIOUSLY VICE PRESIDENT OF CHINA
    ADVERTISING ASSOCIATION. CANNES LION
    FESTIVAL “MEDIA PERSON OF THE YEAR 2015”
    (FIRST CHINESE RECIPIENT).
    SY PREVIOUSLY RAN THE ONLINE MEDIA GROUP
    OF TENCENT NOW HEADED BY MARK REN.
    IMAGE CREDIT:
    CAMPAIGN MIDDLE EAST
    AGE: 51
    JOINED TENCENT: 2011

    View Slide

  21. OTHER KEY HIGHER MANAGEMENT
    CHINACHANNEL.CO
    JOHN LO
    CFO
    SENIOR VICE
    PRESIDENT
    DANIEL XU
    许晨晔
    CO-FOUNDER
    CHIEF
    INFORMATION
    OFFICER
    LU SHAN
    SENIOR EXECUTIVE
    VICE PRESIDENT
    PRESIDENT OF
    TECHNOLOGY AND
    ENGINEERING
    GROUP
    DOWSON TONG
    汤道生
    SENIOR VP
    PRESIDENT OF
    SOCIAL NETWORK
    GROUP (SNG)
    CHAIRMAN OF
    TENCENT MUSIC
    ENTERTAINMENT
    GROUP
    DAVID
    WALLERSTEIN
    CHIEF
    EXPLORATION
    OFFICER
    SENIOR EXECUTIVE
    VICE PRESIDENT

    View Slide

  22. WANG XING
    CEO OF
    MEITUAN DIANPING
    (王兴)
    RICHARD LIU
    FOUNDER OF JD
    (刘强东)
    ZHANG LEI
    FOUNDER OF HILLHOUSE CAPITAL
    (张磊)
    SU HUA
    FOUNDER &
    CEO OF KUAI
    (宿华)
    ZHANG YIMING
    CEO OF TOUTIAO
    (张一鸣)
    CHENG WEI,
    FOUNDER & CEO OF DIDI CHUXING
    (程维)
    LEI JUN
    FOUNDER OF
    XIAOMI
    (雷军)
    NEIL SHEN
    SEQUOIA CAPITAL
    GLOBAL MANAGING
    PARTNER (沈南鹏)
    DAVIS WANG
    CEO & CO-FOUNDER
    OF MOBIKE
    (王晓峰)
    WANG HUIWEN
    SENIOR VP OF
    MEITUAN DIANPING
    (王慧文)
    ZHOU YUAN
    FOUNDER OF ZHIHU
    (周源)
    YAO JINBO
    CEO OF 58.COM
    (姚劲波)
    ALLEN ZHU
    PARTNER, GSR VENTURES
    (朱啸虎)
    CHEN SHENGQIANG
    CEO OF JD FINANCIAL
    (陈生强)
    YANG YUANQING
    CEO OF LENOVO
    (杨元庆)
    PONY MA
    CO-FOUNDER & CEO
    TENCENT
    (马化腾)
    CHINACHANNEL.CO
    TENCENT STRATEGIC PARTNERS, WUZHEN SUMMIT, DEC 3RD 2017

    View Slide

  23. TENCENT & ALIBABA: SOME KEY AREAS OF COMPETITION
    AREA TENCENT ALIBABA
    PAYMENTS
    WECHAT PAY
    (PAY.WEIXIN.QQ.COM)
    ALIPAY
    (ALIPAY.COM)
    ECOMMERCE
    JD, VIPSHOP
    (JD.COM, VIP.COM)
    TAOBAO, TMALL
    (TAOBAO.COM TMALL.COM)
    SOCIAL
    WECHAT, QQ
    (WEIXIN.QQ.COM, IM.QQ.COM)
    WEIBO
    (WEIBO.COM)
    BROWSERS
    QQ BROWSER
    (BROWSER.QQ.COM)
    UC BROWSER
    (UCWEB.COM)
    VIDEO
    TENCENT VIDEO
    (V.QQ.COM)
    YOUKU, TUDOU
    (YOUKU.COM, TUDOU.COM)
    RETAIL
    YONGHUI, CARREFOUR
    (YONGHUI.COM.CN, CARREFOUR.CN)
    SUNING, HEMA
    (SUNING.COM, FRESHHEMA.COM)
    CLOUD
    TENCENT CLOUD
    (CLOUD.TENCENT.COM)
    ALI CLOUD
    (ALIYUN.COM)
    TRAVEL
    LY
    (LY.COM)
    FLIGGY
    (ALITRIP.COM)
    BIKE SHARING
    MOBIKE
    (MOBIKE.COM/CN)
    OFO
    (OFO.SO)
    ENTERPRISE
    PRODUCTIVITY
    WECHAT ENTERPRISE, TIM
    (OFFICE.QQ.COM)
    DING TALK
    (DINGTALK.COM)
    MAPS
    TENCENT MAPS
    (MAP.QQ.COM)
    AUTONAVI
    (DITU.AMAP.COM)
    BANKING
    WEBANK
    (WEBANK.COM)
    MY BANK
    (MYBANK.CN)
    O2O ON-DEMAND
    MEITUAN DIANPING
    (MEITUAN.COM, DIANPING.COM)
    KOUBEI / ELE.ME
    (KOUBEI.COM, ELE.ME)
    CHINACHANNEL.CO

    View Slide

  24. TENCENT'S 2018 RETAIL INVESTMENT BLITZKRIEG
    LAYING THE FOUNDATIONS FOR SMART RETAIL
    INVESTMENT
    DATE
    LOGO COMPANY BUSINESS
    CHINA
    LOCATIONS
    TENCENT
    OWNERSHIP
    INVESTMENT
    AMOUNT
    2017 DEC 15TH YONGHUI YONGHUI SUPERMARKETS 580+ 5% $636 M
    2018 JAN 15TH VIP SHOP VIP SHOP
    CLOTHES RETAIL
    3RD LARGEST ECOMMERCE
    PLAYER IN CHINA
    N/A 7% $604 M
    2018 JAN 23RD CARREFOUR CARREFOUR SUPERMARKETS 250+ UNDISCLOSED
    2018 JAN 29TH DALIAN WANDA
    DALIAN
    WANDA
    COMMERCIAL PROPERTY,
    MALLS, HOTELS
    185+ MALLS
    90 HOTELS
    4.12% $1.5 B
    TENCENT HAVE BEEN EXTREMELY ACTIVE IN THE RETAIL SPACE IN THE FIRST MONTH OF 2018

    View Slide

  25. OTHERS
    REVENUE & LOCATIONS
    CHINACHANNEL.CO

    View Slide

  26. TENCENT 2017 Q3 REVENUE
    CHINACHANNEL.CO
    ONLINE GAMES
    26.8 BILLION RMB
    ONLINE
    ADVERTISING
    11.4 BILLION RMB
    OTHERS: PRIMARILY
    PAYMENTS & CLOUD
    12.0 BILLION RMB
    41%
    17%
    18% 23%
    SOCIAL NETWORKS
    15.2 BILLION RMB

    View Slide

  27. WXG
    IEG OMG CDG
    SNG
    MIG TEG
    MARK REN
    PONY MA
    MARTIN LAU
    DOWSON
    TONG
    ALLEN
    ZHANG SHAN LU
    INTERACTIVE ENTERTAINMENT
    ONLINE MEDIA
    MOBILE INTERNET
    SOCIAL NETWORKING
    CORPORATE DEVELOPMENT
    WEIXIN (WECHAT)
    TECHNOLOGY & ENGINEERING
    IEG:
    OMG:
    MIG:
    SNG:
    CDG:
    WXG:
    TEG:
    ONLINE
    GAMES
    41%
    ONLINE
    ADS
    OTHERS
    17%
    18%
    TENCENT REVENUE
    SEGMENTS MATCHED
    LOOSELY TO BUSINESS GROUPS
    23%
    SOCIAL
    NETWORKS

    View Slide

  28. CHINACHANNEL.CO
    52.6
    43.7
    27.8
    24.5
    10.3 9.8 8.3
    APPLE AMAZON GOOGLE MICROSOFT FACEBOOK TENCENT ALIBABA
    REVENUE COMPARISON
    Q3 2017 BILLION USD
    17%
    34%
    24%
    12%
    47%
    61% 61%
    YEARLY
    INCREASE

    View Slide

  29. 10.7
    6.7 6.6
    0.3
    4.7
    2.7 2.6
    APPLE GOOGLE MICROSOFT AMAZON FACEBOOK TENCENT ALIBABA
    19%
    33%
    16%
    2%
    79%
    69%
    146%
    CHINACHANNEL.CO
    PROFIT COMPARISON
    Q3 2017 BILLION USD
    YEARLY
    INCREASE

    View Slide

  30. TENCENT REVENUE, PROFIT & COST OF REVENUE
    PAST 9 QUARTERS MILLION RMB
    11,014
    12,661 13,406
    15,235
    18,560
    20,238
    24,109
    28,300
    33,529
    26,590
    30,441
    31,995
    35,691
    40,388
    43,864
    49,552
    56,606
    65,210
    7,445 7,164
    9,183
    10,737 10,646 10,529
    14,476
    18,231 18,006
    1 2 3 4 5 6 7 8 9
    COST OF REV TENCENT REVENUE NET PROFIT (ATTRIBUTED TO SHAREHOLDERS)

    View Slide

  31. KEY PRODUCT INTRODUCTION: QQ
    MESSAGING FOR CHINA’S YOUTH
    QQ IS THE ORIGINAL TENCENT SOCIAL PLATFORM. IT IS NO EXAGGERATION TO SAY THAT AT ONE STAGE
    THE QQ DESKTOP MESSENGER WAS INSTALLED ON ALMOST EVERY COMPUTER IN CHINA. THE ICONIC QQ
    HIGH PITCHED ‘BEEP, BEEP, BEEP’ SOUND DEFINED THE GENERATION OF CHINA’S EARLY PRE-MOBILE ERA
    INTERNET. OVER THE PAST FEW YEARS IT HAS SUCCESSFULLY REBRANDED AND REPOSITIONED AS A
    LIVELY AND VIBRANT MESSAGING APP FOR CHINA’S YOUTH.
    LAUNCHED: FEB 1999
    ACTIVE USERS: 843 MILLION
    BG: SNG (SOCIAL NETWORK GROUP)
    CORE PRODUCT TEAM: SHENZHEN
    POSITIONING: YOUNG AND FUN
    OFFICIAL WEBSITE: IM.QQ.COM

    View Slide

  32. KEY PRODUCT INTRODUCTION: WECHAT
    THE 900 POUND GORILLA OF CHINA’S INTERNET
    WECHAT IS CHINA’S MOST FAMOUS INTERNET PRODUCT BY FAR AND WITH GOOD REASON. CHINESE SPEND
    APPROXIMATELY 1/3 OF ALL THEIR TIME ON MOBILE IN WECHAT AND USE THE APP FOR EVERYTHING YOU
    COULD IMAGINE. THE DECENTRALIZED WECHAT ECOSYSTEM ALLOWS USERS TO DO AND BUY ALL KINDS OF
    SERVICES.
    LAUNCHED: JAN 2011
    ACTIVE USERS: 980 MILLION
    BG: WXG (WEIXIN GROUP)
    CORE PRODUCT TEAM: GUANGZHOU
    POSITIONING: SUPER APP FOR EVERYTHING
    OFFICIAL WEBSITE: WEIXIN.QQ.COM

    View Slide

  33. WECHAT & QQ MONTHLY ACTIVE USERS
    QUARTERLY GROWTH OVER LAST 4 YEARS
    MONTHLY ACTIVE USERS (MILLIONS)
    272
    355
    396
    438
    468
    500
    549
    600
    650
    697
    762
    806
    846
    889
    937
    963
    980
    815 808
    848
    829 820 815 832 843
    860 853
    877
    899 877
    868
    860 850 843
    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

    View Slide

  34. 1998
    TENCENT WAS FOUNDED IN THIS SMALL ROOM IN SHENZHEN.
    NOV 11TH IS NOT ONLY THE DATE OF CHINA’S LARGEST SHOPPING
    FESTIVAL, IT ALSO HAPPENS TO BE THE BIRTHDAY OF TENCENT. ON
    NOVEMBER 11TH 1998,

    View Slide

  35. 2009
    FOR THE PAST 9 YEARS THE TENCENT BUILDING IN CENTRAL
    SHENZHEN WITH IT’S DISTINCTIVE PENGUIN LOGO ATOP HAS BEEN
    THE HEAD QUARTERS.
    COMPLETED: AUG 2009
    SIZE: 88,180 SQUARE METERS
    HEIGHT: 193 METERS (39 FLOORS)

    View Slide

  36. 2018
    TENCENT IS IN THE PROCESS OF MOVING HEAD
    OFFICES TO A NEW MORE MODERN, LARGER
    BUILDING: BINHAI MANSION
    COMPLETED: LATE 2017
    SIZE: 345,570 SQUARE METERS
    HEIGHT: 248 METERS (50 FLOORS)

    View Slide

  37. GUANGZHOU IS WHERE THE WECHAT TEAM ARE BASED.
    THE OFFICES ARE LOW KEY SITUATED IN A LEAFY
    INNOVATION PARK

    View Slide

  38. PALO ALTO IS THE RELATIVELY SMALL,
    MORE LAID BACK U.S. HEAD QUARTERS

    View Slide

  39. CHINA
    KEY TENCENT OFFICE LOCATIONS
    BEIJING
    CHENGDU
    (GAMING, HONOR
    OF KINGS)
    SHANGHAI
    GUANGZHOU
    (WECHAT)
    SHENZHEN
    (HEAD QUARTERS)
    BELLEVUE
    (A.I. LABS)
    PALO ALTO
    (U.S HEAD OFFICE)
    THE U.S

    View Slide

  40. MATTHEW BRENNAN
    CO-FOUNDER OF CHINA CHANNEL
    MATTHEW IS A WELL-KNOWN SPEAKER AND WRITER
    ABOUT WECHAT AND TENCENT (CHINA'S LARGEST
    INTERNET COMPANY). HIS OPINIONS ARE REGULARLY
    FEATURED IN GLOBAL MEDIA: THE ECONOMIST, BBC,
    THE FINANCIAL TIMES, FORBES, QUARTZ,
    TECHCRUNCH, TECHINASIA, CAMPAIGN ASIA,
    EMARKETER, ADAGE. MATTHEW'S COMPANY CHINA
    CHANNEL ORGANIZES CHINA’S LARGEST WECHAT
    MARKETING CONFERENCE SERIES FOR
    INTERNATIONAL COMPANIES. HE WORKS PRIMARILY
    WITH INTERNATIONAL BUSINESSES TO HELP FORM
    AND IMPLEMENT THEIR WECHAT PLATFORM
    STRATEGY. CO-HOST OF THE CHINA TECH TALK
    PODCAST PRODUCED TOGETHER WITH CHINA'S
    LARGEST ENGLISH LANGUAGE TECH MEDIA, MATTHEW
    HAS BEEN BASED IN CHINA NOW FOR OVER 13+ YEARS.
    PARTS OF THIS REPORT ARE ADAPTED FROM KEYNOTE SPEECHES DELIVERED BY MATTHEW BRENNAN AT THE ALSMA
    APAC REGIONAL CONFERENCE, NOV 2017 SIEM REAP & THE MADE BY CHINA CONFERENCE, DECEMBER 2017 COPENHAGEN.
    FOR SPEAKING AVAILABILITY: [email protected]
    FOR MEDIA INQUIRIES: [email protected]
    LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN
    TWITTER: @MBRENNANCHINA

    View Slide

  41. UNDERSTANDING TENCENT
    ASIA’S MOST IMPORTANT AND LEAST
    UNDERSTOOD INTERNET COMPANY
    DELIVERED BY: MATTHEW BRENNAN

    View Slide