Leading market position in China's instant messaging, social networking, and media and entertainment services with high scalability, and strong brand name. Solid progress in further monetizing user traffic. Intensifying competition in China with increasing business overlap among the larger players. Very strong balance sheet over the next two years. High and stable business profitability. Moderate acquisition appetite compared with peers'. Strong operating cash flow generation capacity to cover capital expenditure and likely even acquisitions. The positive outlook reflects our expectation that Tencent Holdings Ltd. will continue to expand its scale and services and attract high user traffic to improve user engagement and increase business scale over the next 24 months. We anticipate that the company will generate very strong and
