Founded in 1994, Tencent connects over one billion users through its communications and social platforms, namely Weixin and QQ. Since its founding, Tencent has found new income streams including high-performance advertising, gaming, digital content, and fintech services. As of 23 November 2020, Tencent’s market capitalisation stood at HK$5.6 trillion. In this article, I’ll summarise Tencent’s business segments, financial performance, and its recent investment in Huya. Value-added Services (VAS) In 2019, Tencent derived 53% of group revenues from its VAS businesses. In the last six years, this segment attained a CAGR of 28.2% in revenues where it increased from RMB45.0 billion in 2013 to RMB200.0 billion in 2019. Tencent’s VAS comprise two sub-segments – Gaming and Social Network. Gaming. Tencent achieved a CAGR of 23.7% over the past six years in Gaming revenues, up from RMB32.0 billion in 2013 to RMB114.7 billion in 2019. This is due to an increase in...