Tencent Holdings

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Tencent Holdings Limited
腾讯控股有限公司
Type Public company
Traded as SEHK: 700
Industry Online service provider
Founded 1998
Headquarters Shenzhen, Guangdong, China
Area served People's Republic of China
Key people Chairman: Mr. Ma Huateng
Revenue increase CNY￥ 19,646 million (2010)[1]
Operating income increase CNY￥9,913 million (2010)[1]
Net income increase CNY￥8,115 million (2010)[1]
Total assets increase CNY￥ 35,830 million (2010)[1]
Total equity increase CNY￥ 21,841 million (2010)[1]
Website tencent.com
This article contains Chinese text. Without proper rendering support, you may see question marks, boxes, or other symbols instead of Chinese characters.

Tencent Holdings Limited (SEHK: 700) is a publicly owned holding company whose subsidiaries provide Internet and mobile phone value-added services and operate online advertising services in the People's Republic of China.[2] Its headquarters are in Nanshan District, Shenzhen.

Tencent's diverse services include social networks, web portals, e-commerce, and multiplayer online games.[3] It operates the well-known instant messenger Tencent QQ[4][5] and runs one of the largest web portals in China, QQ.com.[6]

As of December 31, 2010, there were 647.6 million active Tencent QQ IM user accounts,[1] making Tencent QQ the world's largest online community. The number of simultaneously online QQ accounts has sometimes exceeded 100 million.[7]

As of November 2010, the company is the third largest Internet company in the world behind Google and Amazon with a market capitalization of US$38 billion.[8] Other big, Chinese Internet companies include Sina and Baidu.

Contents

[edit] History

Tencent QQ instant messenger

Tencent was founded by Ma Huateng and Zhang Zhidong in November 1998[9] as Tencent Inc,[10] with money from venture capitalists.[2] It remained unprofitable for the first three years.[9]

South African Naspers purchased a 46% share of the company in 2001 (as of 2010, they own 35%[11]). It was during these early years that Tencent's messenger product had its name changed from OICQ to QQ; this was said to be due to a (apocryphal[citation needed]) lawsuit from ICQ itself.[9] Others say American Internet company AOL, not ICQ, requested the name change.[12] Tencent Holding Ltd was listed on the Hong Kong Stock Exchange on 16 June 2004,[10] and was added as a Hang Seng Index Constituent Stock in 2008.[13]

The company originally derived income solely from advertising and premium users of QQ, who pay monthly fees to receive added extras.[9] But by 2005, charging for use of QQ mobile, its cellular value-added service, and licensing its iconic penguin character, which can be found on snack food[14] and clothing,[9] had also become income generators.[9] And, more recently,[when?] Tencent has seen profit from sale of virtual goods.[15]

While Tencent's services have included online gaming since 2004, around 2007-2008 it rapidly increased its offerings by licensing South Korean games.[16] At least two, Cross Fire and Dungeon and Fighter, were originally produced for Tencent by South Korean game developers, but the company now makes its own games.[16] Games have expanded the number of outlets for virtual good sales.[16]

[edit] Incorporation

Tencent Holdings Ltd is incorporated in the Cayman Islands.[17]

[edit] Name

The name "Tencent" is derived from the Chinese phrase "十分" (Pinyin: shí fēn). The first character 十 (shí) is the number 10. The second character 分 (fēn) is a measurement that can be used to represent one cent, where one 分 (fēn) is a one-hundredth subdivision of one yuan. The word 分 (fēn) traditionally refers to 1/10 of something, and is used in common Chinese phrases like "十分" to describe 100%, perfection, or "very". For example, "十分强大" (shí fēn qiáng dà) would translate to "very powerful".

However, the Chinese name for the company is not "十分" (Pinyin: shí fēn). Instead, it is a loose transliteration of "Tencent": 腾讯 (Pinyin: téng xùn). In Chinese it means, roughly, "galloping message".[12]

[edit] Virtual goods

Tencent sells virtual goods[18] for use in their MMOs,[19] IM client, social networking sites,[20] and for mobile phones.[21] Income from the sale of virtual goods was a large proportion of Tencent's revenue in 2009.[6] And the sort of games Tencent makes will see increasing popularity throughout the next few years.[22]

Tencent's online currency, Q Coins, can be used to purchase virtual goods.[23] These range from the offbeat, such as virtual pets[24] and the virtual clothing, jewelry and cosmetics needed to customize online-game avatars,[25] to the more mundane, such as more storage space, wallpapers, bigger photo albums[20] and ring tones.[21]

[edit] Products and services

Tencent offers a diverse mix of services and includes both consumers and businesses as customers.

[edit] Copying claims

Many of Tencent's software and services are remarkably similar to those of competitors. The founder and chairman, Huateng "Pony Ma" Ma, has famously said, "[To] copy is not evil." Competitors are quick to denigrate. A former CEO and President of SINA.com, Wang Zhidong, has said, "Pony Ma is a notorious king of copying." Jack Ma of Alibaba Group, has stated, "The problem in Tencent is no innovation. All things are copies."[26]

As of 2009, the company held 400 patents.[27]

[edit] QQ instant messenger

Main article: Tencent QQ

Launched in February 1999,[28] and Tencent's most notable product,[4][5] QQ is one of the most popular instant messaging platforms in its home market.[23][29] While the IM service is free, a fee is charged for mobile messaging.[30]

QQ International

The first English version of QQ is launched in 2009. QQ International is available in 6 languages: English, French, German, Spanish, Korean and Japanese. QQ international is fully compatible with Windows XP, Vista, Mac OSX and iPhone.

iTQQ

China's first "smart interactive television service" and a joint effort with TCL.[23]

Longhaier

A joint effort with Globe7 HK Ltd, a subsidiary of India's Northgate Technologies, Longhaier is a student-oriented social networking site for the Chinese market.[31] The site includes forums, campus information, games and other interactive Web applications, as well as information on study abroad, job placement and scholarship opportunities.[31]

Multiplayer online games

Tencent offers a number of online, multiplayer games through its game portal QQ Games.

These massively multiplayer online games include Dungeon & Fighter, a side-scrolling online fighting game; QQ Fantasy, a 2D online game that incorporates elements from Chinese mythology; Xunxian, a 3D, online RPG; QQ Three Kingdoms, an online casual role playing game set during the historical three kingdoms period; QQ Huaxia, an online RPG; QQ Dancer, an online musical dancing game that offers QQ IM interactivity; QQ Nanaimo, an online game set on a desert island where players maintain houses and pets; QQ Speed, a casual online racing game; QQ R2Beat, an online in-line skating game; QQ Tang, an "advanced casual game" with gameplay derived from Chinese literature; QQ PET, a QQ IM-based desktop virtual pet game and two online first-person shooters; Cross Fire and AVA.[32]

PaiPai.com

Launched on March 13, 2006,[33] it is a C2C auction site.[23]

QQLive
Main article: QQLive

A peer-to-peer distribution platform for streaming media.[34]

QQ Show

An avatar-based social platform like Cyworld,[6] QQ show's avatar design system allows purchase of virtual goods to outfit avatars, which can also be used with QQ IM.[35]

QQ Player

In 2008, Tencent released a media player, available for free download, under the name QQ Player.[36]

Qzone
Main article: Qzone

A social networking service[5] and, as of 2008, the largest in China.[17]

SOSO
Main article: Soso.com

Launched in March 2006,[37] this search engine's name sounds like "搜搜", or "search search" in Chinese.[38] It was a Chinese partner of Google, using AdWords.[8]

Tencent Traveler

Abbreviated "TT", this web browser developed by Tencent[39] is based on the Trident[40] and was the third most-used browser in China.[40]

Tencent Weibo
Main article: Tencent Weibo

A Chinese microblogging service, Tencent Weibo competes with Sina Weibo.

TenPay

An online payment system similar to PayPal,[23] it supports B2B, B2C and C2C payments.[33] In some Chinese cities individuals can use TenPay for utility payments and to refill their public transport cards.[41] Co-branded credit cards are available, and credit card bills can also be paid using the service.[42] Offline recharging of your TenPay account is possible, as the company sends employees to collect customer money in person.[43]

[edit] Subsidiaries

Tencent has at least four wholly foreign owned enterprises, and nearly twenty subsidiaries in all.[17]

[edit] Tencent Technology (Shenzhen) Co Ltd

A software development company that has created, among others, Tencent Traveler and later versions of QQ IM,[44] as well as mobile software.[45] This subsidiary is located at the Southern District of Hi-tech Park, Shenzhen.[44] It also holds a number of patents related to instant messaging and massively multiplayer online game gaming.[46]

[edit] Locations

Tencent's headquarters are located in the Tencent Building (腾讯大厦 Téngxùn Dàshà) in the Southern District of Hi-techPark (新科技园 Xīn Kējì Yuán) in Nanshan District, Shenzhen.[28][47] Other sites include a 48,000 square meter compound that houses an R&D center in the Chengdu Hi-Tech Industrial Development Zone,[48] a data and R&D center in Tianjin's Binhai Service Outsourcing Industry Park that is expected to be finished by June 2013,[49] and also some 17,646 square meters of Shanghai office space purchased through a subsidiary, Tencent Cyber (Tianjin), and located in the Shanghai Modern Technology Services Community Zone.[50]

[edit] See also

Portal icon People's Republic of China portal
Portal icon Companies portal
Portal icon Internet portal


[edit] References

  1. ^ a b c d e f "2010 Annual Report". Tencent.com. http://www.tencent.com/en-us/content/ir/rp/2010/attachments/201002.pdf. Retrieved 2011-03-31. 
  2. ^ a b Biographical Dictionary of New Chinese Entrepreneurs and Business Leaders, Pg. 111-112 Ilan Alon and Wenxian Zhang. Edward Elgar Publishing, 2009. Google Book Search.
  3. ^ Tencent, More Than QQ Instant Messaging In China thechinaobserver.com, undated but posted prior to February 12, 2009
  4. ^ a b Tencent Set Up china-business-daily.blogspot.com, November 7, 2008
  5. ^ a b c Tencent: The Largest Internet Portal In China technologygear.net, Wednesday, February 25th 2009
  6. ^ a b c For Chinese IM Portal Tencent, The Money Is In Micro-Transactions techcrunch.com, March 27, 2008
  7. ^ "腾讯QQ最新24小时在线数据". Im.qq.com. http://im.qq.com/online.shtml#qq. Retrieved 2011-01-14. 
  8. ^ a b What Valley Companies Should Know about Tencent techcrunch.com, Jun 20, 2010
  9. ^ a b c d e f Investing in China: The Emerging Venture Capital Industry Jonsson Yinya Li, Google Book Search
  10. ^ a b Tencent Tencent official site
  11. ^ Tencent 腾讯 Naspers
  12. ^ a b "Tencent: March of the Penguins". Businessweek: pp. 4/7. August 04, 2011. http://www.businessweek.com/magazine/tencent-march-of-the-penguins-08042011_page_4.html. Retrieved 8 Aug. 2011. 
  13. ^ HANG SENG INDEXES ANNOUNCES INDEX REVIEW RESULTS
  14. ^ QQ Games on AIM: Another Penguin Aims for the Casual Market gotgame.com, January 13, 2009
  15. ^ A Chinese Web Giant's Sizzling Success businessweek.com, November 26, 2008, 9:11AM EST
  16. ^ a b c "Tencent: March of the Penguins". Businessweek: pp. 5/7. August 04, 2011. http://www.businessweek.com/magazine/tencent-march-of-the-penguins-08042011_page_5.html. Retrieved 8 Aug. 2011. 
  17. ^ a b c 2008 Annual Report Tencent Official Site
  18. ^ "Cashing in on virtual goods - Techland". http://techland.blogs.fortune.cnn.com/2008/07/14/cashing-in-on-virtual-goods/. 
  19. ^ TenCent Reaches New Heights in Virtual Goods Sales insidesocialgames.com, March 31st, 2009
  20. ^ a b Tencent Tells its Story at Virtual Goods Summit 3pointd.com, Friday, June 22nd, 2007, at 1:45 pm Eastern
  21. ^ a b Ericsson Mobility World partner profile: Tencent ericsson.com
  22. ^ China Web game market to hit $750 mln in 3 yrs-report reuters.com, ue Nov 16, 2010 3:48am EST
  23. ^ a b c d e Meet China's Google trouncer 14 May 2007, 1917 hrs IST, The Times Group
  24. ^ Lucrative Alternatives to Online Advertising businessweek.com, October 23, 2008, 5:00PM EST
  25. ^ The world's most lucrative social network? China's Tencent beats $1 billion revenue mark venturebeat.com, March 19, 2009
  26. ^ Tencent's innovation is copied... Machine translation xinhuanet.com, April 13, 2007
  27. ^ Tencent Holds 400 Patents JLM Pacific Epoch, Jul 29, 2009
  28. ^ a b Investor Fact Sheet Tencent Official Site
  29. ^ About Tencent Tencent Official Site
  30. ^ The party, the people and the power of cyber-talk economist.com, Apr 27th 2006
  31. ^ a b Globe7, Tencent Partner For Networking Site in China financialexpress.com, 2008-03-07 09:01:09+05:30 IST
  32. ^ Products and Services > Interactive Entertainment Service Tencent official Site
  33. ^ a b Products and Services > E-commerce Tencent Official Site
  34. ^ Products and Services > Internet Value-added Service Tencent Official Site
  35. ^ Products and Services > Internet Value-added Service Tencent Official Site
  36. ^ Tencent releases QQ Player
  37. ^ Products and Services > Online Media Tencent Official Site
  38. ^ Tencent to Build 3000-person Search Army to Power Search Engine cnreviews.com, 14 APR 2008
  39. ^ Products & Services > Instant Messaging Service Tencent Official Site
  40. ^ a b Mozilla Takes on Microsoft in China businessweek.com, January 11, 2008, 7:21AM EST
  41. ^ Tenpay Expands Into Online Utility Payment JLM Pacific Epoch, Jul 20, 2009
  42. ^ Tenpay Releases Credit Card Payment Service JLM Pacific Epoch, Apr 15, 2009
  43. ^ Knock, Knock: TenPay To Offer Door-To-Door Recharging Service J:M Pacific Epoch, Nov 14, 2008
  44. ^ a b Company Snapshot: Tencent Technology (Shenzhen) Co., Ltd. businessweek.com
  45. ^ China Developers Bring Mobile Widgets to Market nokia.com, 2008
  46. ^ IPEXL Search > Patent Directory > "TENCENT TECHNOLOGY SHENZHEN COMPANY LIMITED" ipexl.com
  47. ^ "Contact Us." Tencent. Retrieved on September 28, 2011. "Tencent Building, Kejizhongyi Avenue, Hi-techPark,Nanshan District,Shenzhen." Address in Chinese: "深圳市南山区高新科技园中区一路腾讯大厦"
  48. ^ Tencent Opens Chengdu R&D Center JLM Pacific Epoch, Apr 09, 2009
  49. ^ Tencent's Tianjin R&D Center Ready in 2013 JLM Pacific Epoch, Mar 13, 2009
  50. ^ DI SCLOSEABLE TRANSACTI ON PURCHASE OF PROPERTY 1 5 Ma y 2 0 0 8

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