In the third quarter of 2023, Tencent Holdings achieved a revenue of 154.63 billion yuan, a year-on-year increase of 10%; The net profit (Non IFRS) was 44.92 billion yuan, a year-on-year increase of 39%.
During the same period, JD Group's revenue was 247.7 billion yuan, an increase of 1.7% year-on-year. In addition, JD.com has announced significant personnel changes: Group CEO Xu Ran will also serve as CEO of JD.com Retail, while former CEO Xin Lijun will have another position in the company.
Tencent WeChat Monthly Activity 1.336 Billion
Over 180 business access models
From the perspective of its main business revenue, Tencent's revenue structure has not undergone significant changes in this quarter. The revenue from value-added services increased by 4% year-on-year to 75.748 billion yuan, accounting for about half of the total; The online advertising revenue was 25.721 billion yuan, a year-on-year increase of 20%; The revenue from financial technology and enterprise services reached 52.048 billion yuan, a year-on-year increase of 16%.
In terms of gaming, Tencent's international market gaming revenue increased by 14% to 13.3 billion yuan. Excluding the impact of exchange rate fluctuations, the growth rate was 7%. PUBG Mobile's revenue rebounded, while Victory: Nikki, Valorant, and Triple Match 3D also contributed to the revenue growth. Fantasy Tower's revenue fell year-on-year; The revenue of local market games increased by 5% to 32.7 billion yuan, thanks to the recent release of "Ark of Destiny" and "Contract Without Fear", as well as the increase in revenue from evergreen games such as "King of Glory" and "DnF".
In terms of social networks, Tencent's revenue has remained roughly stable at 29.7 billion yuan. According to the financial report, the combined monthly active accounts of WeChat and WeChat reached 1.336 billion in this quarter, an increase of 2% year-on-year and 0.7% month on month; The monthly active accounts of QQ mobile terminals reached 558 million, a year-on-year decrease of 3% and 2%, respectively; The number of paid video members decreased by 3% year-on-year, but increased by 1% month on month; The number of paid music members increased by 21% year-on-year.
It should be noted that the latest financial reports previously disclosed by Tencent Music, a listed company under Tencent, show that its performance has been continuously impacted. In this quarter, Tencent Music achieved a revenue of 6.57 billion yuan, a year-on-year decrease of 11%; The net profit was 1.26 billion yuan, a year-on-year increase of 16%. Among them, the revenue from online music services was 4.55 billion yuan, a year-on-year increase of 33%. However, the revenue from social entertainment services and other businesses was 2.02 billion yuan, a significant decrease of 49% year-on-year.
Recently, major technology companies have been continuously iterating their large model products and accelerating their commercialization process.
In September 2023, Tencent's hybrid model made a public debut and began offering an open experience to C-end users. The latest financial report also disclosed relevant progress: within Tencent, more than 180 businesses have been connected to Tencent's hybrid for testing and achieved preliminary results, including Tencent Meeting, Tencent Documents, Enterprise WeChat, Tencent Advertising, WeChat Payment, and WeChat Search.
In addition to internal applications, the hybrid model is also open to the public through Tencent Cloud, providing support for different industries. At the same time as Tencent's financial report, Tencent Cloud also released the process of interpreting the financial report using a hybrid metamodel.
In addition, Tencent's research and development expenses for this quarter were 16.45 billion yuan.
JD's product revenue has decreased
Retail CEO replacement
Since 2023, JD has continued to promote its low price strategy. From this quarter, JD's overall revenue slightly increased year-on-year, with operating profit increasing by 6.6% year-on-year to 9.3 billion yuan; The net profit attributable to the common shareholders of the company was 7.9 billion yuan, compared to 6 billion yuan in the same period last year. JD claims that its profit performance has reached a historic high.
However, JD Retail, which accounted for the largest proportion of revenue, had a revenue of 212.06 billion yuan this quarter, almost unchanged from the same period last year's increase of 211.92 billion yuan. The revenue from goods decreased by 0.9% year-on-year, with the growth of revenue from electronic products and household appliances stagnating, while the revenue from daily necessities decreased by 2.3% year-on-year. From the perspective of the first three quarters, the revenue of goods decreased by 0.4% year-on-year, while the revenue of electronic products and household appliances increased by 3.8% year-on-year. However, the revenue of daily necessities decreased by 6.7% year-on-year.
Last quarter, JD's retail operating profit margin declined, leading to some doubts about JD's low-priced strategy from the outside world. In this quarter, JD's retail operating profit margin was 5.2%, which was unchanged compared to the same period last year; The operating profit margin for the first three quarters was 4.3%, compared to 4.0% in the same period last year.
Compared to retail, JD's better performing business is logistics. As a listed company under JD, JD Logistics achieved a revenue of 41.7 billion yuan this quarter, a year-on-year increase of 16.5%, with external customer revenue accounting for 72%. In addition, Dada, another logistics listed company under JD.com, also saw a year-on-year growth of 20.4% in revenue.
Along with the financial report, there were also changes in JD's executives. JD announced that Xu Ran, CEO of JD Group, will also serve as CEO of JD Retail Group, while Xin Lijun, former CEO of JD Retail Group, will be appointed.
According to data, Xin Lijun joined JD in October 2012 and has since served as the President of JD Retail Life Services Group, CEO of JD Health, CEO of JD Retail, and Chairman and CEO of Dada Group's Board of Directors. At this year's JD "Double 11" press conference, Xin Lijun appeared and performed, saying, "Low price is a gene engraved in JD's bones.