Tencent Holdings Ltd. - ADR

Strong Financial Performance: Tencent reported total revenue of RMB 172.4 billion for Q4 2024, marking an 11% year-on-year growth. Gross profit also increased by 17% year-on-year to RMB 90.7 billion. Non-IFRS net profit attributable to equity holders rose 30% year-on-year to RMB 55.3 billion, reflecting strong operational efficiency and profitability.

AI Investments and Initiatives: Tencent is heavily investing in AI, ramping up CapEx to RMB 34.9 billion in Q4 2024, a staggering increase of 421% year-on-year. The company is focusing on developing its HunYuan Foundation Model and integrating AI into various services, which has already begun to generate significant revenue growth in their advertising and cloud services sectors.

E-commerce Growth with Mini Shops: The Weixin Mini Shops platform is evolving as a long-term e-commerce initiative, introducing social features like gifting, which effectively engages users and builds a delivery location graph. This initiative is part of a broader strategy to integrate e-commerce within Tencent's existing ecosystem, leveraging social interaction for enhanced user experience.