Tencent Holdings Ltd. “sustained solid user, revenue and profit growth” in Q2 2019, according to chairman and CEO Pony Ma Huateng. The company’s revenues rose by 21% to 88.8 billion RMB ($12.5 billion U.S.). This included strong gains in fintech services — through the immensely popular WeChat Pay service, which saw revenues increase by 37% to 22.8 billion RMB.
Users of Tencent’s WeChat messaging and payments platform have surpassed 1.1 billion, and WeChat’s mini-program ecosystem has become a major incubator for new platforms in China. A number of e-commerce platforms — including PinDuoDuo, Zhuan Zhuan and XiangWuShuo — have found success through extensive integration into WeChat’s flexible chat and payment environment.
In May, JD.com announced that it had renewed a strategic tie-up with Tencent that would afford the company preferred access to WeChat. It will pay Tencent around $800 million U.S. for the three-year deal. Tencent will also take $250 million U.S. in JD.com’s Class A shares.
Tencent holds a 23% stake in Chinese classifieds giant 58.com (NYSE: WUBA) — a stake which is now worth roughly $2.5 billion U.S. The company has effectively hedged itself in a number of classified-related sectors. In used autos, Tencent-backed RenRenChe and 58.com-backed Guazi.com are battling for market supremacy.