On the afternoon of January 13, Tencent held its 2024 annual employee meeting, where Tencent Chairman and CEO Ma Huateng, Tencent President Liu Chiping, Tencent COO Ren Yuxin, and Tencent Senior Executive Vice President Zhang Xiaolong shared their summaries and thoughts on the company's 2024 business strategy and management.
Regarding the WeChat business group, especially the industry's hot topic of how to break the inertia of &#34;live-streaming e-commerce&#34; to seek breakthroughs, Ma Huateng stated, &#34;Zhang Xiaolong believes that products are information and should not be limited to video accounts, but should be integrated into the entire WeChat ecosystem, thinking about e-commerce from an atomic level. The path we take this way will be different from others and will go further. We firmly support the WeChat business group in making such innovative developments, leveraging our social capabilities to act as an ecological connector for e-commerce. We also look forward to more 'blue packages' and new ideas in the future.&#34;
It is reported that on-site, Ma Huateng reviewed the macro environment for 2024, expressing confidence in the resilience of the Chinese economy, believing in Chinese enterprises and the indomitable entrepreneurial spirit of entrepreneurs. Tencent has achieved a rebound after bottoming out over the past two years.
&#34;We are on a big ship, and we should work together and support each other in the face of various challenges. I believe there are always more solutions than problems, and ultimately, any difficulties can be resolved because we have talent, technology, and market demand; the prospects are certainly bright,&#34; said Ma Huateng.
<h2>Praising Overseas Game Business</h2>
Tencent has not yet disclosed its full-year performance for 2024.
Looking back, Tencent's previously released Q3 2024 report showed that in the first three quarters of 2024, Tencent's revenue was 487.811 billion yuan, a year-on-year increase of 7%, and operating profit (Non-IFRS) was 178.336 billion yuan, a year-on-year increase of 25%. In the third quarter of 2024, Tencent's revenue was 167.193 billion yuan, a year-on-year increase of 8% and a quarter-on-quarter increase of 4%, with operating profit (Non-IFRS) of 61.274 billion yuan, a year-on-year increase of 19% and a quarter-on-quarter increase of 5%.
&#34;In the third quarter of 2024, the gaming business revenue achieved strong growth, we upgraded the transaction platform strategy around WeChat stores. We continue to deploy AI in products and operations, including marketing services and cloud services, and the tangible benefits are becoming increasingly evident,&#34; Tencent emphasized in its financial report.
Regarding the performance of IEG (Interactive Entertainment Group), Ma Huateng stated that the overall performance in 2024 is &#34;very impressive,&#34; with progress in both domestic and overseas businesses in terms of sustainability and navigating cycles. &#34;The entire organizational structure and morale have greatly improved.&#34; He also revealed that Tencent's share of overseas game business has approached half of its domestic game business, and he expects even faster development in the future.
The financial report shows that in the third quarter of 2024, value-added service revenue was 82.695 billion yuan, a year-on-year increase of 9%. Among value-added services, game revenue was 51.8 billion yuan, including international game revenue of 14.5 billion yuan and domestic game revenue of 37.3 billion yuan, with international and domestic game revenues increasing by 9% and 14% year-on-year, respectively
For the PCG (Platform and Content Group), which has many businesses and faced pressure at last year's employee conference, this year has also received recognition from Ma Huateng. &#34;All businesses have surfaced,&#34; Ma Huateng mentioned, including TME (Tencent Music Entertainment Group), Yuewen, Huya, and even Tencent News. Although short dramas have had a significant impact on long content, the company remains firm in its positioning: &#34;We must know what to pursue and what not to pursue; creating high-quality content is our strength.&#34;
<h2>Looking Forward to More &#34;Red Packets&#34;</h2>
It is reported that in August 2024, the Video Account Store will be upgraded to WeChat Store, further connecting with the WeChat ecosystem.
In December 2024, the WeChat Store will begin a grayscale test of the &#34;Gift&#34; function—products in the WeChat Store can be &#34;given&#34; to friends. The giver can select products that support &#34;gifting&#34; in the WeChat Store, and after completing the payment, send them to designated WeChat friends. Friends will receive a gift &#34;red packet&#34; in the chat interface, fill in the delivery address for confirmation, and then receive the gift.
For the WeChat Group, Ma Huateng reviewed the exploration and thinking of the Video Account over the past year in the WeChat transaction ecosystem, especially how to break the inertia of &#34;live-streaming e-commerce&#34; to seek breakthroughs.
&#34;Zhang Xiaolong believes that products are information and should not be limited to the Video Account but should be integrated into the entire WeChat ecosystem, thinking about e-commerce from an atomic level. The path taken this way will be different from others and will go further. We firmly support WXG in making such innovative developments, leveraging our social capabilities to act as an ecological connector for e-commerce. We also look forward to more 'red packets' and new ideas in the future.&#34; Ma Huateng said.
<h2>Continuous Investment in Resources, Embracing Large Models</h2>
For CSIG (Cloud and Smart Industry Group), which is primarily responsible for Tencent's industrial internet layout, it has always been characterized by large investments, significant infrastructure, and long return cycles. Ma Huateng also used the metaphor of &#34;surfacing&#34; to encourage them, stating that the Cloud and Smart Industry Group supports the development of the entire Tencent Group, especially that the cloud business provides important support for many businesses within the Tencent ecosystem, serving as a solid foundation beneath the surface.
&#34;I believe that by 2025, they will have a great opportunity to stabilize and form a continent.&#34; Regarding advertising and financial payment businesses, Ma Huateng stated that advertising can be viewed as content, allowing users to be interested in watching, and he is optimistic about the enhancement space that AI will bring to advertising. He also emphasized that Tencent has always approached financial business with a relatively stable and long-term perspective, actively managing risks.
For TEG (Technology Engineering Group), which has long been responsible for building Tencent's foundational technical capabilities, this group is also tasked with the development of the Hunyuan large model. Ma Huateng stated that Tencent will continue to invest resources in computing power reserves, hoping that each BG can embrace the productization of large models. Currently, products including WeChat, QQ, input methods, and browsers will launch AI intelligent entities, while games, WeChat Reading, Tencent Video, and other products will explore more AI applications based on Hunyuan.
Author of this article: Hu Feijun, Source: Securities China, Original title: &#34;Pony Ma, Internal Speech Exposed! WeChat 'Blue Packet', Video Accounts, Games...&#34;
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At the 2024 annual employee meeting, Tencent CEO Jack Ma shared his strategic thoughts on the company's future, emphasizing the innovative development of the WeChat ecosystem, particularly breakthroughs in the e-commerce sector. He stated that products should be viewed as information and integrated into the entire WeChat ecosystem. Jack Ma expressed confidence in the resilience of the Chinese economy, believing that Tencent should unite in the face of challenges. He also mentioned the strong growth of the gaming business in the third quarter of 2024 and emphasized the application of AI in products and operations

- Tencent held its annual employee meeting on January 13, 2024, where executives discussed business strategies and performance.  
- CEO Ma Huateng expressed confidence in China's economic resilience and highlighted Tencent's growth, particularly in its gaming and social commerce sectors.  
- The company plans to innovate within the WeChat ecosystem and continue investing in AI and cloud services to enhance its offerings and support future growth.

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Pony Ma's internal speech exposed! WeChat "blue envelope", video accounts, games