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"Black Myth: Wukong" is a massive hit, but Tencent, as a shareholder, shows no reaction?

2024-08-20


Public information shows that the developer of "Black Myth," Game Science (Shenzhen Youke Interactive Technology Co., Ltd.), was established in June 2014, 

and all members of its founding team come from Tencent. The company's name is a combination of "Game" and "Science," aiming to integrate the fun and sensibility of 

games with the seriousness and rigor of science. In the early days of entrepreneurship, Game Science received investment from Hero Interactive Entertainment (now known as "Hero Game Technology Co., Ltd.").


According to Tianyancha information, the current actual controller of Game Science is Feng Ji, with a shareholding ratio of 38.76%; 

the second-largest shareholder is Shenzhen Youke Interactive Enterprise Management Center, with a shareholding ratio of 27.36%, and the actual controller is also Feng Ji.

 This means that as the founder of the game's initial team, Feng Ji holds more than 66% of the shares. In addition, Hero Interactive Entertainment holds a 19%

 stake through its subsidiary Tianjin Hero Jin Control Technology Co., Ltd.; Tencent holds a 5% stake through its subsidiary. It is worth noting that Huayi Brothers (300027) 

holds a 5.7% stake in Hero Game, and on the 20th, Huayi Brothers once surged by more than 10%. However, after the market, it was confirmed that Huayi Brothers sold 

15% of its stake in Hero Interactive Entertainment, and at the same time, Hero Interactive Entertainment also sold its stake in Game Science, and A-share Huayi Brothers has no relationship with "Black Wukong."


In addition, even if the researchers at Li Qiao press the calculator to the fullest, "Black Wukong" would only bring Tencent a revenue elasticity of 700 million, so it is understandable that Tencent is unmoved today.


Tencent's second-quarter report is explosively rebounding!


Whether Tencent has feelings or not is unknown, but Tencent really knows how to make money!


Tencent Holdings' financial performance in the second quarter of 2024 is impressive, with revenue reaching 161.117 billion yuan, a year-on-year increase of 8%,

 and net profit increasing by 82% year-on-year, reaching 47.63 billion yuan. The net profit under Non-GAAP increased by 53% year-on-year, reaching 57.313 billion yuan. 

This growth is due to the increased user participation in several games and the successful launch of new games, especially the local market game revenue and the international 

market game revenue, both achieving a year-on-year increase of 9%. In addition, the number of paid members of Tencent Video increased by 13% year-on-year to 117 million, 

and the number of paid music members increased by 18%, also reaching 117 million.


The combined monthly active account number of WeChat and WeChat reached 1.37 billion, a year-on-year increase of 3%, while the monthly active account 

number of QQ's mobile terminal remained at 570 million. The usage time of WeChat's ecosystem products such as mini-programs, mini-games, and video numbers

 has all achieved significant growth, with the total turnover of mini-games increasing by more than 30% year-on-year.


Tencent has also made progress in AI technology, with the Hunyuan large model being deployed in nearly 700 internal business and scenarios of Tencent,

 helping product intelligence upgrade. At the same time, Tencent's R&D investment in the first half of 2024 exceeded 302.6 billion yuan, showing the company's continued investment in innovative technology.


Tencent's game business, which has been lagging for several quarters, has finally stood up. According to a report by Goldman Sachs, the turnover of Tencent's games,

 including "King of Glory" and "Peace Elite," in the second quarter of 2024 increased by 27% year-on-year, higher than the 11% growth in the first quarter of this year,

 indicating that Tencent's game recovery is accelerating.


Tencent's total cost of share repurchase in the first half of 2024 was about 52.3 billion Hong Kong dollars, and a total of 154,730,000 shares were repurchased, 

which have been canceled, aiming to increase shareholder value in the long run. In addition, Tencent's annual financial report for 2023 shows that the company

 achieved a revenue of 609 billion yuan, a year-on-year increase of 10%, and non-international net profit of 157.7 billion yuan, a year-on-year increase of 36%, 

showing a comprehensive improvement in profit quality.


Tencent Video continues to output high-quality content on the content side, such as "The Joy of Life Season 2" and "With the Phoenix," and the popularity 

of these contents has driven the growth of the number of paid members. At the same time, Tencent Video has demonstrated technical capabilities in the

 forefront technology field of AIGC, bringing more growth momentum to the platform.


Overseas expansion, short dramas, and mini-games have been regarded as the three hottest trends in 2024 - especially mini-games (which do not need to download 

applications, they "rely" on the mini-program ecosystem of WeChat and TikTok), and are becoming a new field for ByteDance and Tencent to compete for.


In 2024, Tencent achieved significant results by focusing on video numbers and strengthening its game business, finally getting through the most difficult period, 

and is now moving towards a new stage of rapid development.