Tencent Holding Ltd

Tencent Holdings Limited is a well established and reputed investment holding company in China and is one of the biggest competitors of the Alibaba Group. For investors in Alibaba it is important to understand Alibaba’s competition. The subsidiaries of Tencent primarily deal with provision of entertainment, internet, mass media value added and mobile phone services.

Tencent’s History

The company was founded by Zhang Zhidong and Ma Huateng in 1998. Earlier, the company was registered as Tencent Inc. On 16th June, 2004, it was first listed on the stock exchange. Initially, the company earned revenue from advertising, and premium users of the QQ messenger. However, it wasn’t long before Tencent Holding Limited started offering a wide range of services, including ecommerce, multiplayer online games, social networks and web portals.

Tencent’s Financial State

According to the company’s financial information in August, 2012, Tencent is the 4th largest online business worldwide after eBay, Amazon and Google. In 2012, Tencent’s revenue surpassed Facebook’s revenue by over USD 2 billion. In 2013, the market evaluation of the company increased to over USD 100 billion. Currently, Tencent’s market value is over USD 150 billion.

Tencent’s Virtual Goods

Tencent Holding Limited sells virtual goods in its own social networking websites, mobile phones and MMOs. This is the major revenue stream for the company. These virtual goods range from virtual jewelry and virtual pets to clothing and cosmetics for customizing online avatars. Other virtual goods include wallpapers, photo albums, storage space and ringtones. Customers can use Q coins (developed by Tencent) to buy virtual goods.

Tencent’s Locations

The headquarters of the company are located in Atlantis, Nashan District, Shenzhen. Besides this, Tencent also has offices in Tianjin’s Binhai Industry Park, Shanghai, Chengdu Industrial Development Zone, and other places.

Tencent’s Products & Services

Tencent offers a wide range of products and services. Some of these include :

QQ Instant Messenger – This service was launched in February, 1999. It has a major market share. The company also sells different versions of this service for Mac OS, Windows and Smart Interactive TV service.

Multiplayer Online Games – Tencent offers many different online multiplayer games through its gaming portal, QQ Games. Some of the games include QQ Fantasy, Dungeon & Fighter, QQ Huaxia, QQ Three Kingdoms and more.

TenPay – This online payment system is quite similar to PayPal. TenPay can be used to pay bills, shop online and easily carry out other financial transactions.

We Chat – This social mobile application is extremely popular around the world. It has text and voice messaging features. It also includes some other social features. The company is planning to expand its usage in many different parts of the world.

Tencent Traveler – This is the 3rd most used internet browser in China.

These were some of the products and services being offered by Tencent Holding Limited. The company keeps adding more services to attract customers on a regular basis.

Tencent’s Subsidiaries

Tencent features about 20 subsidiaries. Four of these are foreign owned. The company also successfully acquired a minority ownership in Riot Games and Epic Games. It even has a software development unit called Tencent Technology in Shenzhen. In online gaming, the company holds numerous patents.

Tencent’s Investments

Tencent Holding Limited increased its share in Kingsoft Network Technology from 15.68% to around 18%. This amounts to USD 46.98 million. The company also recently invested USD 448 million in Sogou.com.

The growth rate of Tencent Holding Limited has been exceptional. The company’s products & services will never be obsolete. It has continued to satisfy customer demands. Thus, investing in Tencent Holding Limited is a smart choice.