Tencent Holdings Limited (“Tencent” or the “Company”, SEHK 00700), a leading provider of Internet and mobile & telecommunications value-added services in China, today announced the unaudited consolidated results for the second quarter and the first half year of 2011 ended June 30, 2011.

Highlights of the First Half of 2011:

Total revenues were RMB13,077.5 million (USD2,020.7 million(1)), an increase of 47.0% over the first half of year endedJune 30, 2010 (“YoY”).
Revenues from Internet value-added services (“IVAS”) were RMB10,637.9 million (USD1,643.8 million), an increase of 52.6% YoY.
Revenues from mobile & telecommunications value-added services (“MVAS”) were RMB1,571.6 million (USD242.9 million), an increase of 21.6% YoY.
Revenues from online advertising were RMB793.2 million (USD122.6 million), an increase of 31.8% YoY.
Gross profit was RMB8,552.1 million (USD1,321,5 million), an increase of 40.6% YoY. Gross margin decreased to 65.4% from 68.4% for the first half of 2010.
Operating profit was RMB6,170.4 million (USD953.5 million), an increase of 36.5% YoY. Operating margin decreased to 47.2% from 50.8% for the first half of 2010.
Non-GAAP operating profit(2) was RMB6,317.8 million (USD976.2 million), an increase of 32.7% YoY. Non-GAAP operating margin decreased to 48.3% from 53.5% for the first half of 2010.
Profit for the period was RMB5,227.5 million (USD807.8 million), an increase of 40.0% YoY. Net margin decreased to 40.0% from 42.0% for the first half of 2010.
Non-GAAP profit for the period(2) was RMB5,296.1 million (USD818.4 million), an increase of 33.4% YoY. Non-GAAP net margin decreased to 40.5% from 44.6% for the first half of 2010.
Profit attributable to equity holders of the Company was RMB5,219.6 million (USD806.5 million), an increase of 41.1% YoY.
Non-GAAP profit attributable to equity holders of the Company(2) was RMB5,271.5 million (USD814.6 million), an increase of 34.0% YoY.
Basic earnings per share were RMB2.863. Diluted earnings per share were RMB2.800.