Overview Key strengths Key risks Market leader in China's instant messaging, payments, as well as media and entertainment services. Strong competition and moderating regulatory risks. Large and sticky user base in China with its integrated flagship WeChat and Weixin apps. Revenue largely concentrated in China. Large cash balance and strong free cash flow. Large investment and shareholder return expenditure. A notable increase in new game approvals since last year and moderate expansion of the gamer base in China will continue to underpin the growth of the domestic game sector. We expect Tencent to perform better than the industry this year, with high-single-digit growth in revenue. Underpinning this will be resilient evergreen flagship titles and new launches in recent months. International
