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Long Tencent For The Sake Of Wechat

Long Tencent For The Sake Of Wechat

In Q2 earnings of Tencent (OTCPK:TCEHY), the company reports overall revenue growth 21% YoY to 88.8 billion yuan, and net income of 24.14 billion yuan, a yoy growth of 35%.To get more wechat news, you can visit shine news official website.

Although online games still contributed close to 1/3 of the total revenue, the relative importance of that sector has been declining, which Tencent has been doing that strategically. Luckily, Tencent has found the next engine for their growth in the next 3-5 years, Wechat (Weixin in China).

If we take a look at the major sectors that have delivered high revenue growth in this quarter, almost all of them are within the Wechat ecosystem:While Tencent is still in the leading position in most of the areas it got involved, we think Wechat is really the major driver for Tencent in the next 3-5 years. In this article, we will focus on a thorough analysis of Wechat.

Wechat is "THE App" in China

WeChat/Weixin reached 1.13 billion MAUs by Q2 2019, making it undoubtedly the most popular social network app in China. Consider China has a population of just 1.4 billion, this means almost 8 out of 10 people in China is using WeChat/Weixin, that's why we call it "THE App" in China.

The number of users is not the scariest part of this app, the penetration of it throughout people's life is that makes WeChat unbeatable. In China, you can literally do EVERYTHING with WeChat.

This summer, I went to Beijing for a short trip and was amazed by how WeChat has dominated people's daily life, compared to like 3 years ago. Let me describe to you how a day in Beijing looks like with just WeChat:

In the morning, I woke up and went to a mobile breakfast shop (like a food truck) to try some authentic local food. Instead of paying with a credit card or cash, I paid through WeChat Pay by scanning the QR code placed at the counter.After breakfast, I ordered a taxi using an affiliated program within WeChat Wallet called DiDi Chuxing, which is basically the Chinese version of Uber/Lyft:

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