Tencent FY2026 Q1 Earnings Release

This presentation may contain forward -looking statements relating to the forecasts, targets, outlook, estimates of financial performance, opportunities,
challenges, business developments, business plans and growth strategies of Tencent Holdings Limited (the “Company ” or “Tencent ”) and its group
companies .These forward -looking statements are based on information currently available to Tencent and are stated here on the basis of the outlook at
the time that this presentation was produced .The Company undertakes no obligation to publicly update any forward – looking statement, whether written
or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise .The forward -looking statements
are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control .The forward -looking statements may
prove to be incorrect and may not be realised in the future . Underlying the forward -looking statements are a large number of risks and
uncertainties .Therefore you should not rely on any of these forward -looking statements .Please see our various other public disclosure documents for a
detailed discussion of those risks and uncertainties .
This presentation also contains some unaudited non -IFRS financial measures which should be considered in addition to, but not as a substitute for,
measures of the Company’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 Company ’s core operations by excluding certain non -cash items and certain
impact of acquisitions . For further explanation of our non -IFRS measures and reconciliations between our IFRS and non -IFRS results, please refer to our
earnings announcement .
In addition, information relating to other companies and the market in general presented in these materials has been obtained from publicly available
information and other sources .The accuracy and appropriateness of that information has not been verified by Tencent and cannot be guaranteed . All
materials contained within this presentation are protected by copyright law and may not be reproduced, distributed, transmitted, displayed, published or
broadcast without the prior, express written consent of Tencent .
The reporting currency of the company is Renminbi .For the purpose of this presentation, all figures quoted in US dollars are based on the exchange rate
of US $1 to RMB 6.9194 for 1Q2026 .
2
Cautionary Note

3

In billion RMB 1Q2026 1Q2025 YoY 4Q2025 QoQ
Total Revenue 196.5 180.0 +9% 194.4 +1%
Value -added Services 96.1 92.1 +4% 89.9 +7%
Social Networks 31.9 32.6 -2% 30.6 +4%
Domestic Games 1 45.4 42.9 +6% 38.2 +19%
International Games 18.8 16.6 +13% 21.1 -11%
Marketing Services 38.2 31.9 +20% 41.1 -7%
FinTech and Business Services 59.9 54.9 +9% 60.8 -2%
Others 2.3 1.1 +103% 2.6 -9%
Gross Profit 111.3 100.5 +11% 108.3 +3%
Non -IFRS
Operating Profit excl. New AI Products 2 84.4 71.9 +17% 76.5 +10%
Operating Profit 75.6 69.3 +9% 69.5 +9%
Operating Margin 38.5% 38.5% stable 35.8% +2.7ppt
Net Profit Attributable to Equity Holders 67.9 61.3 +11% 64.7 +5%
Financial Highlights
1. Domestic Games refers to our games business in the PRC excluding the Hong Kong Special Administrative Region, the Macao Speci al Administrative Region and Taiwan
2. Excludes revenues, costs and expenses for new AI products (Hy , Yuanbao , CodeBuddy , WorkBuddy , and QClaw )
4

Weixin & WeChat
• #1 mobile community
• MAU at 1,432 m
QQ
• Mobile device MAU at
516 m
Mobile Payment
• #1 by MAU & DAU
Mobile Browser
• #1 by MAU
Language Input
• #1 by MAU
Key Services Update
Games
Communications
& Social Networks
Utilities
5 1. All rankings above refer to China market, unless otherwise stated. Company data and QuestMobile , 1Q26
2. IDC Quarterly Public Cloud Services Tracker, 4Q25
IaaS
• Large scale, high -performance
IaaS network
PaaS
• #2 by revenue 2
SaaS
• #1 productivity office software
applications by total user time
spent
China
• #1 by users and revenue
Global
• #1 by revenue
Video
• #1 by paid subscriptions
Music
• #1 by paid subscriptions
Literature
• #1 by users’ paid revenue
FinTech
Cloud
Digital
Content

+11% +11% +10% +7% +6% +8% +8% +11% +13% +15% +15% +13% +9%
Revenue
7
21% 20% 19% 18% 19% 19% 18% 17% 18% 18% 17% 16% 16%
23% 21% 21% 18% 22% 21% 22% 20% 24% 22% 22% 20% 23%
9% 9% 9% 9%
8% 9% 9% 9%
9% 10% 11% 11% 10% 14% 17% 16% 19% 17% 19% 18% 20%
18% 19% 19% 21% 19%
32% 32% 34% 35% 33% 31% 32% 33%
30% 30% 30% 31% 31%
1% 1% 1% 1% 1% 1% 1% 1%
1% 1% 1% 1% 1%
150.0 149.2 154.6 155.2 159.5 161.1 167.2 172.4 180.0 184.5
192.9 194.4 196.5
1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26
Revenue Growth (YoY %)
Revenue by Segment (billion RMB)

+19% +22% +23% +25% +23% +21% +16% +17% +20% +22% +22% +19% +11%
63% 57% 55% 48% 54% 52% 53% 49%
55% 53% 54% 49% 54%
13% 17% 18% 22%
17% 19% 18% 22%
18% 20% 19% 23%
19%
25% 26% 28% 31%
28% 28% 29% 29%
27% 28% 27% 28% 28%
68.2 70.8
76.5 77.6
83.9 85.9 88.8 90.7
100.5 105.0 108.8 108.3 111.3
1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26
Gross Profit
8
Gross Profit Growth (YoY %)
Gross Profit by Segment (billion RMB)

Hy LLM: significant progress but just the first step
Comprehensively revamped system for building models
• Completely rebuilt foundation model team with LLM -native researchers and engineers over last 6 months ; new team is young, energetic,
and cohesive
• Comprehensively re -engineered system and process for pre -training and reinforcement learning :
➢ Infrastructure : re -architected infra to support robustness, scalability and efficiency across pre -training, data and reinforcement
learning
➢ Data : dramatically expanded data set, recruited experts in data collection, cleansing and synthesis, focusing on quality
➢ Training : upgraded pre -training process, simplified overly -complex SFT and scaled reinforcement learning
➢ Evaluation : refocused eval from widely -gamed benchmarks to real world use cases, and to out -of -distribution tests
Hy3 preview: a leading model in its size, with practical utility and cost efficiency
• Purpose : build a cost -efficient and solid model for diverse applications, and de -risk scaling toward larger models
• Core design principles : comprehensive intelligence across reasoning, long -context understanding, instruction following, dialogue, coding
and tool use ; optimise for real world use cases, and for delivering cost efficiency through co -designing inference with model
• Already a leading reasoning model in China : 1) top ranked in math, science, logic, instruct following, long context, and general coding
categories ; 2) strong performance on unseen PhD qualifying exams (Tsinghua and Princeton PhD exams)
• Effective in real -world software engineering and other productivity agentic tasks (human ratings from CodeBuddy and WorkBuddy
scenarios ; task resolution rate for in -house software engineering)
• Internally, already deployed across 131 widely -used internal products (Yuanbao , QQ , WorkBuddy , ima , Tencent News , etc .), providing
valuable feedback and iterative improvement via co -design process
9

Hy LLM: significant progress but just the first step
Hy3 preview topped token usage ranking on OpenRouter
Next steps: scale up to larger models
• LLM team now focusing on producing larger parameter model, leveraging infra and learnings from Hy3
• Aggregating bigger and better datasets, and scaling more powerful RL, to strengthen contextual understanding, enhance agentic
capabilities in areas including coding, and increase the model’s general intelligence
• Together with other Tencent product teams, optimising dataset selection and focusing RL for high value use cases, via co -design processes
10
Source: OpenRouter, cumulative token usage (sum of prompt and completion tokens) from 23 April to 12 May 2026; token usage si nce 9 May in dark blue
Top 10 AI Models by Token Usage
(in trillion)
Hy3 preview Kimi K2.6 Claude Sonnet
4.6
Claude Opus 4.7 Gemini 3 Flash
Preview
DeepSeek V3.2 DeepSeek V4
Flash
MiniMax M2.7 Grok 4.1 Fast Step 3.5 Flash
7.7
5.0
4.0 3.4 3.0 2.7 2.4 2.1 1.9 1.9

• Agentic AI represents a breakout use case after AI chatbot and is more valuable as it lifts productivity
• Agentic AI creating code for programmers is important initial use case, now broadening to support wide range of workloads and occupations
• Breakthrough made possible by more powerful models, harness that unlocks potential of models through linking right models to right tools,
and interfaces that enable users to efficiently manage agents
• Benefits of using AI agents on Tencent platform : Users can control via WeCom , Weixin , QQ , Yuanbao , QQ Browser , and third -party apps ;
users can choose tokens from range of model providers including Hy, based on their price / performance / use case needs ; in future, AI
agents can access Mini Programs ecosystem, use Mini Programs code as AI Skills (pre -built, context aware tools)
• Tencent has early lead in agentic AI deployment, as measured by DAU for WorkBuddy versus competitive products in China
• While early in adoption cycle, CodeBuddy and WorkBuddy are achieving strong organic growth and high retention rates
➢ 60 % + retention rate among active users
➢ 80 % + retention rate among paying users
• Early adopters’ high time spent and high frequency interaction with AI agents acts as a virtuous feedback loop to Tencent, whereby
increased AI agent usage enables us to identify and provide complementary software and services, which in turn increase AI agents’ usage
among a broader enterprise and prosumer user base . As users utilise more AI agents for more complex tasks, paying user conversion
increases, resulting in rapid growth in token usage on Tencent Cloud in recent weeks
CodeBuddy, Claws and WorkBuddy
CodeBuddy
AI creating code Open sourced AI engaging in
general computer use, including
interacting with world wide web and
real -world infrastructure
Claws
AI operating productivity software ;
more secure and controllable than
claws
WorkBuddy
11

Value – added Services
In billion RMB
12
Social Networks
32.6 31.9 30.6 31.9
42.9 45.4
38.2
45.4
16.6 18.8
21.1
18.8
92.1
96.1
89.9
96.1
1Q25 1Q26 4Q25 1Q26
Domestic Games International Games
+4%
YoY
+7%
QoQ
+6%
-2%
+19%
+4%
+13% -11%
Social Networks
• Revenue was down 2% YoY, reflecting decreased revenue from app -based
games item sales arising from late Spring Festival
• Long -form video subscription revenue decreased 2% YoY due to fewer
scheduled releases of exclusive top -tier drama series . We cemented
leadership in animated series, with eight of our self -commissioned titles
ranked among top 10 industry -wide 1 in 1Q 26 . Music subscription revenue
increased 7% YoY, driven by growth in ARPU and subscribers
Domestic Games
• Gross receipts grew at teens % rate YoY due primarily to Delta Force,
Peacekeeper Elite, HoK and VALORANT MOBILE
• However, revenue growth of 6% YoY lagged gross receipt growth, as later
timing of 2026 Spring Festival shifted more revenue recognition to future
periods
International Games
• Revenue increased 13% YoY, mainly driven by Clash Royale , Wuthering
Waves , and VALORANT PC
1. Source: Enlightent, by video views across all long -form video platforms in China for 1Q26

Communications & Social Networks
13
• Branded products – Introduced brand incentives including preferential take rates, product subsidies, and prioritised
recommendations . Brand merchants’ GMV more than tripled YoY in 1Q 26 , particularly in key categories such as FMCG and beauty
• Coupon Sharing – Introduced “Coupon Sharing” feature, allowing frequent buyers to share discount coupons with friends via chats,
and driving higher sales conversion
• Creator matchmaking tool – Upgraded matchmaking mechanism to facilitate more efficient direct creator -to -merchant outreach for
promoting relevant Mini Shops ’ products in Video Accounts and Official Accounts
• Control AI agents – Enabled Weixin and QQ to act as communication interfaces to orchestrate AI agents from mobile for
complicated task execution on PC and cloud
• Video Accounts – Scaled up parameters and enhanced algorithm for content recommendation model, enabling deeper
understanding of users’ interests to recommend more personalised and relevant content . Total time spent on Video Accounts grew
over 20 % YoY in 1Q 26
• Mini Programs – Upgraded developer toolkit architecture, so users can better leverage AI plug -ins (e .g., CodeBuddy ) to create and
debug mini programs more efficiently . Over time, mini program code can evolve into tools for AI agents to use within Weixin
• Weixin Search – Total query volume increased over 25 % YoY, benefitting from LLM -powered ranking and broader AI search
coverage
Increasingly vibrant Mini Shops transaction ecosystem
Strengthened AI capabilities

Domestic Games
141414
Evergreen games set new records
• HoK – gross receipts achieved lifetime high in 1Q 26 fueled by 1) top -tier outfits inspired by
Chinese ink -paintings and by culture of ancient Silk Road ; 2) targeted marketing programs to
address various player segments
• Peacekeeper Elite – peak DAU achieved lifetime high of 90 million and gross receipts
increased by over 30 % YoY in 1Q 26 due to 1) expansion of gameplay including new class –
based extraction mode and ever -evolving UGC platform ; 2) successful IP collaborations with
Ferrari and Douluo Continent
• Delta Force – average DAU and gross receipts achieved lifetime highs in 1Q 26 , benefitting
from 1) Vyron’s Cosmic Guardian skin ; 2) Morphosis season featuring revamped Space City
map ; 3) cross -over promotions with celebrities and brands for Spring Festival
New games achieved breakout success
• VALORANT MOBILE – consistently ranked among top 10 mobile games industry -wide since
launch 1; released distinctive high -quality weapon items
• Roco Kingdom : World – creature -collecting open world RPG built on our classic web game
IP, featuring hundreds of unique creatures and rich social interactions . In its first month, the
game sustained over 13 million average DAU across PC and mobile, and ranked among top
10 mobile games by gross receipts 2
Peacekeeper Elite
HoK
Roco Kingdom: World
1. Source: by monthly gross receipts according to Sensor Tower; launched in Aug 2025
2. Source: according to Sensor Tower, for March 26 – April 26, 2026
We are leveraging AI to accelerate 3D asset production and animation, enrich player
experiences with smarter NPCs, and deliver better graphics via advanced rendering techniques

International Games
15
Gross receipts grew YoY in
1Q 26 , benefitting from Eastern
mythology -themed outfits, brand
collaborations and anniversary
events
PUBG MOBILE
Revamped team and faster
velocity of change drive
innovations such as For Demacia
season, ARAM : Mayhem mode,
and Exalted Viego skin, resulting
in resurgence in DAU and gross
receipts in 1Q 26
League of Legends
Wuthering Waves
DAU and gross receipts grew
rapidly YoY in March, benefitting
from new character power -up
system Buffies , upgraded Brawl
Pass, and improved Trophy
system
Brawl Stars
Gross receipts maintained strong
YoY growth in 1Q 26 , driven by
compelling characters and
resonant narratives of For You
Who Walk In Snow version

Marketing Services
In billion RMB
31.9
38.2 41.1 38.2
1Q25 1Q26 4Q25 1Q26
+20%
YoY
-7%
QoQ
16
Overall
• Revenue grew 20 % YoY, with notable growth from Internet services,
eCommerce and games categories . Revenue growth improved from 17 %
YoY in 4Q 25 as we deepened collaboration with eCommerce platforms and
as demand picked up in response to increased inventory in Video Accounts
• Our automated campaign management solution, AIM+ , powered ~30 % of
total marketing services spending from advertisers in 1Q 26 , and gained
traction among mini game, mini drama and mini shop advertisers
• Upgraded architecture of our runtime ad recommendation models, which
provide deeper understanding of user context and intent, while balanc ing
model complexity with system efficiency
Weixin
• Video Accounts’ ad impressions grew rapidly YoY due to increased total
time spent, video views and ad load . We released more inventory of
rewarded ads which delivered high click -throughs for advertisers
• Mini Programs’ vibrant content consumption attracted marketing spending
from mini game and mini drama studios . New instant -play ad format enables
native gameplay inside the ad without redirections, enhancing user
conversion for mini game developers
Mobile Ad Network
• Made more rewarded ad formats available to third party app developers,
resulting in higher growth in eCPM and thus revenue

FinTech and Business Services
In billion RMB
54.9
59.9 60.8 59.9
1Q25 1Q26 4Q25 1Q26
+9%
YoY
-2%
QoQ
17
FinTech Services
• YoY revenue growth primarily driven by commercial payment volume and
wealth management services
• For commercial payment volume, YoY growth was faster than 4Q 25 ,
benefiting from ongoing increase in number of transactions and higher value
per transaction in categories such as retail and dining services
• Wealth management average assets per user and number of users increased
YoY . We upgraded LiCaiTong membership benefits to attract more high -net –
worth individuals , and leveraged AI to enhance user experience in financial
product discovery and investment process
Business Services
• Revenue grew 20 % YoY, benefitting from increased demand and better
pricing environment for cloud services, and fees collected on Mini Shops
eCommerce transactions
• AI -related demand contributed to increased revenue YoY for Tencent Cloud
across GPU, CPU and storage .Upgraded Tencent Cloud full -stack AI agent
solutions so that customers can integrate our security infrastructure, skillhubs
and Weixin/QQ/WeCom control interfaces into their choice of models and
agents
• Tencent Cloud’s international business grew revenue over 40 % YoY as we
expanded global footprint to 65 Availability Zones, and captured rising
demand for our PaaS solutions

Income Statement
In billion RMB 1Q2026 1Q2025 YoY 4Q2025 QoQ
Revenue 196.5 180.0 +9% 194.4 +1%
Gross profit 111.3 100.5 +11% 108.3 +3%
Operating expenses (45.2) (41.5) +9% (49.3) -8%
Other gains (losses) , net 1.3 (1.4) NA 1.3 -5%
Operating profit 67.4 57.6 +17% 60.3 +12%
Net gains from investments and others 1.9 1.4 +37% 3.3 -42%
Interest income 4.0 3.7 +7% 4.8 -16%
Finance costs (3.0) (3.9) -23% (3.6) -17%
Share of profit of associates & JV s, net 3.6 4.6 -21% 6.8 -47%
Income tax expense (14.5) (13.7) +6% (12.5) +16%
Net profit 59.4 49.7 +19% 59.1 +0.5%
Net profit attributable to equity holders 58.1 47.8 +21% 58.3 -0.3%
Diluted EPS in RMB 6.302 5.129 +23% 6.276 +0.4%
Non -IFRS
Operating Profit excl. New AI Products 1 84.4 71.9 +17% 76.5 +10%
Operating profit 75.6 69.3 +9% 69.5 +9%
Net profit attributable to equity holders 67.9 61.3 +11% 64.7 +5%
Diluted EPS in RMB 7.364 6.583 +12% 6.966 +6%
19
1. Excludes revenues, costs and expenses for new AI products ( Hy, Yuanbao , CodeBuddy , WorkBuddy , and QClaw )

41.7
48.9 52.3 56.8 54.8 55.6 53.0 57.7 55.5 57.6 56.7 59.7 55.0
Marketing Services (%)
53.9 54.0 55.5 53.7
57.3 57.0 57.5 55.9
59.6 60.4 61.2 59.5 62.6
Value -added Services (%)
Gross Margins
34.5 38.4 40.9 43.9 45.6 47.6 47.8 47.1 50.3 52.1 50.2 50.7 52.1
1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26
FinTech and Business Services (%)
20
45.5 47.5 49.5 50.0 52.6 53.3 53.1 52.6 55.8 56.9 56.4 55.7 56.6
Overall Gross Margin (%)

14.7
11.3 12.5 11.3
1Q25 1Q26 4Q25 1Q26
S&M
in billion RMB
Operating Expenses
21
R&D
in billion RMB
G&A (excl. R&D)
in billion RMB
18.9
22.6 23.8 22.6
1Q25 1Q26 4Q25 1Q26
Non -IFRS Non -IFRS Non -IFRS
7.9
11.3 13.0 11.3
1Q25 1Q26 4Q25 1Q26
+44%
YoY
-13%
QoQ
1Q26 S&M grew by 47% YoY and decreased by 13%
QoQ
+19%
YoY
-5%
QoQ
1Q26 R& D grew by 20% YoY and decreased by 4%
QoQ
1Q26 G&A (excl. R&D) grew by 5% YoY and decreased
11% QoQ
-24%
YoY
-10%
QoQ

30.0
30.9
33.4
31.7
36.8 36.3 36.6
34.5
38.5
37.5 37.6
35.8
38.5
39.9
39.2
40.2
39.3
43.0
1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26
Non-IFRS Operating Margin
excl. New AI Products¹
(%)
Non – IFRS Operating Margin
22 1. Excludes revenues, costs and expenses for new AI products ( Hy , Yuanbao , CodeBuddy , WorkBuddy , and QClaw )

In billion RMB 1Q2026 1Q2025 YoY 4Q2025 QoQ
Operating CAPEX 31.2 26.4 +18% 16.9 +84%
Non -operating CAPEX 0.7 1.1 -30% 2.7 -72%
Total CAPEX 31.9 27.5 +16% 19.6 +63%
Free Cash Flow 56.7 47.1 +20% 34.0 +67%
Total Cash 533.7 476.0 +12% 494.8 +8%
Less: Total Debt (386.8) (385.8) +0.3% (387.7) -0.2%
Net Cash 146.9 90.2 +63% 107.1 +37%
CAPEX, FCF and Cash Position
23
• Repurchased ~13 million shares for a consideration of ~RMB6.7 billion during 1Q26
• As at 31 Mar 2026, the f air value of our shareholdings 1 in listed investee companies (excluding subsidiaries) was ~RMB547
billion (USD79 billion) and the carrying book value of our shareholdings in unlisted investee companies (excluding
subsidiaries) was ~RMB365 billion (USD53 billion)
1. Including those held via special purpose vehicles, on an attributable basis.