TENCENT ANNOUNCES 2025 SECOND QUARTER RESULTS

Revenue and Non-IFRS Operating Profit Increased Double Digit YoY Utilising AI in Games and Marketing Services

Tencent Holdings Limited (HKEX: 00700 (HKD Counter) and 80700 (RMB Counter), “Tencent” or “the Company”), a world-leading Internet and technology company in China, today announced the unaudited consolidated results for the quarter ended 30 June 2025 (“2Q2025”).

Mr. Ma Huateng, Chairman and CEO of Tencent, said, “During the second quarter of 2025, we delivered double-digit revenue and non-IFRS operating profit growthon a year-on-year basis, as we invested in, and also benefitted from, utilising AI. Our games performed well in terms of users and revenue as evergreen games such as Honour of Kings and Peacekeeper Elite evolve into platforms while increasing their usage of AI, and as new games such as Delta Force brokeout. Our marketing services revenue sustained rapid growth as we upgraded our advertising foundation model, leading to better performance of advertisements across our traffic platforms. We are striving to bring further benefits of AI to consumers and enterprisesthrough powering moreuse cases within Weixin, driving usage of our AI native app Yuanbao, and upgrading the capabilities of our HunYuan foundation models.”

2Q2025Financial Highlights

Revenues: +15% YoY,gross profit: +22% YoY, non-IFRS[1] operating profit: +18% YoY

— Total revenues were RMB184.5 billion, up 15% over the second quarter of 2024.

— Gross profit was RMB105.0 billion, up 22% YoY.

— On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or non-cash items:

— Operating profit was RMB69.2 billion, up 18% YoY. Operating margin increased to 38% from 36% last year.

— Net profit was RMB 64.8 billion, up 11% YoY.

— Net profit attributable to equity holders of the Company for the period was RMB63.1 billion, up 10% YoY. Excluding non-IFRS share of profits of associates and joint ventures in both the current quarter and the same quarter last year, non-IFRS profit attributable to equity holders of the Company would have increased by 20% year-on-year to RMB56.8 billion.

— Basic earnings per share were RMB6.931. Diluted earnings per share were RMB6.793.

— On an IFRS basis:

— Operating profit was RMB60.1 billion, up 18% YoY. Operating margin increased to 33% from 31% last year.

— Net profit was RMB56.0 billion, up 16% YoY.

— Net profit attributable to equity holders of the Company for the quarter was RMB55.6 billion, up 17% YoY.

— Basic earnings per share were RMB6.115. Diluted earnings per share were RMB5.996.

— Capital expenditure was RMB19.1 billion, up 119% YoY.

— Total cash was RMB468.4 billion and free cash flow was RMB43.0 billion, up 7% YoY. Net cash position totalled RMB74.6 billion.

— The fair value of our shareholdings[2] in listed investee companies (excluding subsidiaries) totalled RMB714.3 billion as at 30 June 2025, compared to RMB653.4 billion as at 31 March 2025. The carrying book value of our shareholdings in unlisted investee companies (excluding subsidiaries) was RMB342.3 billion as at 30 Jun 2025, compared to RMB337.9 billion as at 31 March 2025.

— During the second quarter of 2025, the Company repurchased approximately 38.9 million shares on the Hong Kong Stock Exchange for an aggregate consideration of approximately HKD19.4 billion.

[1]Non-IFRS adjustments excludes share-based compensation, M&A related impact such asnet (gains)/losses from investee companies, amortisation of intangible assets, impairment provisions/(reversals), SSV & CPP, income tax effects and others[2]Including those held via special purpose vehicles, on an attributable basis

2Q2025Business Review and Outlook

— We enriched AI features in Weixin, providing AI-powered citations in content, intelligent responses to customer enquiries for Mini Shops merchants, and automated text summaries for Video Accounts video clips.

— We deployed AI tools in games to accelerate content production, introduced AI-powered features enabling more realistic virtual teammates and non-player characters, used AI-powered marketing activities to increase user acquisition and engagement, contributing to the popularity and revenue growth of our Domestic and International Games.

— We upgraded Mini Games' technology infrastructure with expanded game engine compatibility, enhanced graphics rendering, and reduced load time, which facilitated developers in porting complex app-based games to Mini Games. Total gross receipts of Mini Games increased 20% year-on-year in the second quarter of 2025.

— Domestically, Delta Force, a first-person shooter that we released on mobile and PC in September 2024, exceeded 20 million monthly average DAU, ranking it among the top 5 games by DAU, and the top 3 games by gross receipts, industry-wide in July 2025[3].

— Internationally, Supercell released more frequent content updates, optimised the reward system and hosted more community events for Clash Royale, boosting the game's DAU, and lifting its monthly gross receipts to a seven-year high in June 2025.

— We expanded AI capabilities in advertisement creation, placement, recommendation and performance analysis, enhancing advertising click-through rates and conversions, returns on investment for advertisers, and growing marketing services revenue on our platforms.

— Tencent Video maintained its leading position in China's long-form video market with 114 million[4] video subscribers. Tencent Music sustained its leading position in the music streaming market with 124 million[5] music subscribers.

— Benefitting from improved consumption activity, commercial payment volume growth turned positive year-on-year in the second quarter of 2025, contributing to higher revenue growth for FinTech Services.

— For HunYuan, we enhanced our data quality and diversity through data augmentation and synthesis, and implemented more effective pre-training and post-training scaling, bolstering the model's foundational capabilities. Our HunYuan 3D model ranked first[6] on Hugging Face for its industry-leading geometric precision, texture fidelity and prompt-3D alignment capabilities. Game developers, 3D printing enterprises, and design professionals are increasingly adopting HunYuan 3D model to generate digital assets.

[3]Company data, QuestMobile, Sensor Tower[4]The average daily number of paying users for the secondquarter of 2025[5]The average number of paying users as of the last day of each month during the second quarter of 2025[6]Publishedon https://huggingface.co/spaces/3DTopia/3DGen-Leaderboard, August 2025

Operating Metrics

As at As at Year- As at Quarter- 30June 30 June on-year 31 March on-quarter 2025 2024 change 2025 change (in millions, unless specified)Combined MAU of Weixin 1,411 1,371 3% 1,402 0.6%and WeChatMobile device MAU of QQ 532 571 -7% 534 -0.4%Fee-based VAS paying 264 263 0.4% 268 -1%users

2Q2025Management Discussion and Analysis

Revenues from VAS increased by 16% year-on-year to RMB91.4 billion for the second quarter of 2025. Domestic Games revenues were RMB40.4 billion, up 17% year-on-year, driven by the contribution from recently released Delta Force and growth in revenues from evergreen games including Honour of Kings, VALORANT, and Peacekeeper Elite. International Games revenues were RMB18.8 billion, reflecting a 35% year-on-year increase, driven by growth in revenues from Supercell's games and PUBG MOBILE, as well as the contribution from newly released Dune: Awakening. Social Networks revenues rose by 6% year-on-year to RMB32.2 billion, driven by growth in app-based game virtual item sales, Video Accounts live streaming revenue and music subscription revenue.

Revenues from Marketing Services[7]were RMB35.8 billion for the second quarter of 2025, up 20% year-on-year. This growth was primarily due to AI-driven improvements to our advertising platform and enhancements to the Weixin transaction ecosystem, which resulted in robust advertiser demand across Video Accounts, Mini Programs and Weixin Search. Marketing Services revenues increased across most major industry categories during the quarter.

Revenues from FinTech and Business Services rose by 10% year-on-year to RMB55.5 billion for the second quarter of 2025. FinTech Services revenue growth was driven by higher revenues from consumer loan services, commercial payment activities and wealth management services. Increased enterprise customer demand for AI-related services, including GPU rental and API tokenusage, along with increased eCommerce technology service fees, resulted in Business Services revenue growth accelerating versus prior quarters.

For other detailed disclosure, please refer to our website https://www.tencent.com/en-us/investors.htmlhttp://www.tencent.com/ir, or follow us via Weixin Official Account (Weixin ID: TencentGlobal).

[7]Starting third quarter of 2024, we have renamed this revenue segment from “Online Advertising”to “Marketing Services”to better represent the breadth of our marketing solutions and accompanying technology services across our online marketing properties

AboutTencent

Tencent uses technology to enrich the lives of Internet users.

Our communication and social services, Weixin and QQ, connect users with each other and with digital content and services, both online and offline, making their lives more convenient. Our targetedmarketing serviceshelps advertisers reach out to hundreds of millions of consumers in China. Our FinTech and business services support partners' business growth and assist their digital upgrade.

Tencent invests heavily in talent and technological innovation, actively promoting the development of the Internet industry. Tencent was founded in Shenzhen, China, in 1998. Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since 2004.

Investor contact: IR@tencent.com Media contact: GC@tencent.com

Non-IFRS Financial Measures

To supplement the consolidated results of the Group (“the Company and its subsidiaries”) prepared in accordance with IFRS, certain additional non-IFRS financial measures (in terms of operating profit, operating margin, profit for the period, profit attributable to equity holders of the Company, basic EPS and diluted EPS) have been presented in this press release. These unaudited non-IFRS financial measures should be considered in addition to, not as a substitute for, measures of the Group's financial performance prepared in accordance with IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies.

The Company's management believes that the non-IFRS financial measures provide investors with useful supplementary information to assess the performance of the Group's core operations by excluding certain non-cash items and certain impact of investment-related transactions. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Group's major associates based on available published financials of the relevant major associates, or estimates made by the Company's management based on available information, certain expectations, assumptions and premises.

Forward-Looking Statements

This press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Group. These forward-looking statements are based on information currently available to the Groupand are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.

CONDENSED CONSOLIDATED INCOME STATEMENTRMBin millions, unless specified Unaudited Unaudited 2Q2025 2Q2024 2Q2025 1Q2025Revenues 184,504 161,117 184,504 180,022VAS 91,368 78,822 91,368 92,133Marketing Services 35,762 29,871 35,762 31,853FinTech and Business Services 55,536 50,440 55,536 54,907Others 1,838 1,984 1,838 1,129Cost of revenues (79,491) (75,222) (79,491) (79,529)Gross profit 105,013 85,895 105,013 100,493Gross margin 57% 53% 57% 56%Selling and marketing expenses (9,410) (9,156) (9,410) (7,866)General and administrative expenses (31,921) (27,491) (31,921) (33,664)Other gains/(losses), net (3,578) 1,484 (3,578) (1,397)Operating profit 60,104 50,732 60,104 57,566Operating margin 33% 31% 33% 32%Net gains/(losses) from investments 2,638 (654) 2,638 1,407and othersInterest income 4,121 3,850 4,121 3,748Finance costs (3,941) (3,112) (3,941) (3,860)Share of profit/(loss) of associates and 4,473 7,718 4,473 4,581joint ventures, netProfit before income tax 67,395 58,534 67,395 63,442Income tax expense (11,351) (10,168) (11,351) (13,717)Profit for the period 56,044 48,366 56,044 49,725Attributable to:Equity holders of the Company 55,628 47,630 55,628 47,821Non-controlling interests 416 736 416 1,904Non-IFRS operating profit 69,248 58,443 69,248 69,320Non-IFRS profit attributable to equity 63,052 57,313 63,052 61,329holders of the CompanyEarnings per share for profitattributable to equity holders ofthe Company(in RMB per share)- basic 6.115 5.112 6.115 5.252- diluted 5.996 4.994 5.996 5.129CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMERMBin millions, unless specified Unaudited 2Q2025 2Q2024Profit for the period 56,044 48,366Other comprehensive income, net of tax:Items that may be subsequently reclassified to profit or lossShare of other comprehensive income of associates and joint ventures 6 139Transfer of share of other comprehensive income to profit or loss upon disposal (3) 17and deemed disposal of associates and joint venturesTransfer to profit or loss upon disposal of financial assets at fair value through – -other comprehensive incomeNet (losses)/gains from changes in fair value of financial assets at fair value through (85) 12other comprehensive incomeCurrency translation differences 3,323 (242)Net movement in reserves for hedges (163) (921)Items that will not be subsequently reclassified to profit or lossShare of other comprehensive income of associates and joint ventures (31) (379)Net gains from changes in fair value of financial assets at fair value through 67,681 25,905other comprehensive incomeCurrency translation differences 232 151Net movement in reserves for hedges (60) – 70,900 24,682Total comprehensive income for the period 126,944 73,048Attributable to:Equity holders of the Company 122,756 71,703Non-controlling interests 4,188 1,345OTHER FINANCIAL INFORMATIONRMBin millions, unless specified Unaudited 2Q2025 2Q2024 1Q2025EBITDA (a) 79,467 62,902 73,817Adjusted EBITDA (a) 85,122 68,518 81,559Adjusted EBITDA margin (b) 46% 43% 45%Interest and related expenses 3,541 2,918 3,386Net cash/(debt)(c) 74,592 71,757 90,229Capital expenditures (d) 19,107 8,729 27,476Note:(a) EBITDA is calculated as operating profit minus other gains/(losses), net, and adding back depreciation of property, plant and equipment, investment properties as well as right-of-use assets, and amortisation of intangible assets and land use rights. Adjusted EBITDA is calculated as EBITDA plus equity-settled share-based compensation expenses(b) Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues(c) Net cash/(debt) represents period end balance and is calculated as cash and cash equivalents, plus term deposits and others, including highly liquid investment products held for treasury purposes, minus borrowings and notes payable(d) Capital expenditures primarily consist of investments in IT infrastructure (including computer equipment, components, and software), data centres, land use rights, office premises and intellectual properties (excluding media content)CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONRMB in millions, unless specified Unaudited Audited As at As at 30 June, 2025 31 December, 2024ASSETSNon-current assetsProperty, plant and equipment 118,565 80,185Land use rights 22,693 23,117Right-of-use assets 16,952 17,679Construction in progress 14,438 12,302Investment properties 895 801Intangible assets 215,832 196,127Investments in associates 307,573 290,343Investments in joint ventures 6,831 7,072Financial assets at fair value through profit or loss 207,263 204,999Financial assets at fair value through other 401,756 302,360comprehensive incomePrepayments, deposits and other assets 31,174 42,828Other financial assets 1,413 1,076Deferred income tax assets 30,004 28,325Term deposits 92,424 77,601 1,467,813 1,284,815Current assetsInventories 435 440Accounts receivable 51,315 48,203Prepayments, deposits and other assets 109,410 101,044Other financial assets 4,125 4,750Financial assets at fair value through profit or loss 18,235 9,568Financial assets at fair value through other 6,604 3,345comprehensive incomeTerm deposits 169,423 192,977Restricted cash 3,893 3,334Cash and cash equivalents 182,057 132,519 545,497 496,180Total assets 2,013,310 1,780,995CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)RMB in millions, unless specified Unaudited Audited As at As at 30 June, 2025 31 December, 2024EQUITYEquity attributable to equity holders of the CompanyShare capital – -Share premium 52,346 43,079Treasury shares (2,288) (3,597)Shares held for share award schemes (4,491) (5,093)Other reserves 148,880 47,129Retained earnings 920,192 892,030 1,114,639 973,548Non-controlling interests 88,210 80,348Total equity 1,202,849 1,053,896LIABILITIESNon-current liabilitiesBorrowings 202,966 146,521Notes payable 119,338 130,586Long-term payables 12,801 10,201Other financial liabilities 5,627 4,203Deferred income tax liabilities 16,888 18,546Lease liabilities 13,328 13,897Deferred revenue 4,402 6,236 375,350 330,190Current liabilitiesAccounts payable 130,501 118,712Other payables and accruals 76,862 84,032Borrowings 58,631 52,885Notes payable 12,880 8,623Current income tax liabilities 19,561 16,586Other tax liabilities 4,127 4,038Other financial liabilities 6,298 6,336Lease liabilities 5,343 5,600Deferred revenue 120,908 100,097 435,111 396,909Total liabilities 810,461 727,099Total equity and liabilities 2,013,310 1,780,995RECONCILIATIONSOF THE GROUP'SNON-IFRSFINANCIAL MEASURES TO THE NEAREST MEASURES PREPARED IN ACCORDANCE WITHIFRS As Adjustments Non-IFRS reportedRMB in millions, Share-based Net Amortisation of Impairment SSV & CPP Others Incomeunless specified compensation (gains)/losses intangible assets provisions/ (e) (f) tax effects (a) from investee (c) (reversals) (d) (g) companies (b) Unaudited three months ended 30 June 2025Operating profit 60,104 7,361 – 1,614 – 169 – – 69,248Share of profit/(loss) of associates 4,473 903 (798) 1,544 226 – – – 6,348and joint ventures, netProfit for the period 56,044 8,264 (2,396) 3,158 (372) 751 – (683) 64,766Profit attributable to 55,628 8,071 (3,192) 2,848 (405) 751 – (649) 63,052equity holdersOperating margin 33% 38% Unaudited three months ended 30 June 2024Operating profit 50,732 6,213 – 1,305 – 190 3 – 58,443Share of profit/(loss) of associates 7,718 926 (91) 1,313 20 – – – 9,886and joint ventures, netProfit for the period 48,366 7,139 (3,672) 2,618 3,526 1,025 3 (561) 58,444Profit attributable to equity holders 47,630 6,981 (3,726) 2,418 3,492 1,025 3 (510) 57,313Operating margin 31% 36% Unaudited three months ended 31 March 2025Operating profit 57,566 10,100 – 1,515 – 139 – – 69,320Share of profit/(loss) of associates 4,581 968 111 1,713 267 – – – 7,640and joint ventures, netProfit for the period 49,725 11,068 (31) 3,228 (689) 160 – (769) 62,692Profit attributable to equity holders 47,821 10,833 1,081 2,854 (719) 160 – (701) 61,329Operating margin 32% 39%Note:(a) Including put options granted to employees of investee companies on their shares and shares to be issued under investee companies' share-based incentive plans which can be acquired by the Group, and other incentives(b) Including net (gains)/losses on deemed disposals/disposals of investee companies, fair value changes arising from investee companies, and other expenses in relation to equity transactions of investee companies(c) Amortisation of intangible assets resulting from acquisitions(d) Mainly including impairment provisions/(reversals) for associates, joint ventures, goodwill and other intangible assets arising from acquisitions(e) Mainly including donations and expenses incurred for the Group's Sustainable Social Value and Common Prosperity Programme (“SSV & CPP”) initiatives(f) Primarily non-recurring compliance-related costs and expenses incurred for certain litigation settlements of the Group and/or arising from investee companies(g) Income tax effects of non-IFRS adjustments

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