Gaming Dominance Solidifies Tencent’s Leadership

Gaming remains Tencent’s most dominant segment, with revenues from its Value-Added Services (VAS) business—comprising gaming and social networks—rising 9% YoY to RMB 82.7 billion.

Domestically, hit titles like Honor of Kings and Peacekeeper Elite continued to deliver solid growth, supported by Valorant and the newly launched Delta Force. In the international market, Tencent expanded Valorant to consoles, boosting gross receipts by over 30% YoY.

This success underscores Tencent’s ability to maintain engagement in a competitive gaming landscape. The company’s investments in AI-driven personalized experiences and enhanced live-service elements further strengthen its position globally.

Social Media: Expanding Beyond Communication

Tencent’s social media platforms, Weixin (WeChat) and QQ, remain integral to its ecosystem. WeChat’s combined Monthly Active Users (MAUs) grew to 1.382 billion, while QQ saw a modest increase in MAUs.

WeChat Mini Programs achieved a Gross Merchandise Value (GMV) exceeding RMB 2 trillion, driven by expanded use cases like food ordering and electric vehicle charging. These initiatives reflect Tencent’s strategy of embedding commerce and services directly into its social platforms, enhancing user convenience and stickiness.

Leveraging AI, Tencent improved WeChat Search’s ability to handle complex queries, significantly increasing commercial click-through rates. QQ also saw innovation with upgraded infrastructure and new features, marking a return to YoY MAU growth.

Marketing Services and Advertising Resurgence

Tencent’s Marketing Services revenue, which rose 17% YoY to RMB 30 billion, demonstrates strong demand for its advertising solutions. Key contributors included Video Accounts, Mini Programs, and WeChat Search.

The Paris Olympics provided an additional boost, as advertisers sought to capitalize on high-profile events. Notably, eCommerce and gaming advertisers increased spending, offsetting weakness in categories like real estate and food and beverage.

FinTech and Business Services: Mixed Growth Amid Economic Headwinds

Revenue from FinTech and Business Services rose by 2% YoY to RMB 53.1 billion. FinTech services, encompassing payment and wealth management, showed stability, with the latter benefiting from increased user activity and assets under management.

Payment services, however, faced subdued consumption. In Business Services, growth in cloud services revenue was a highlight, aligning with Tencent’s broader focus on supporting digital transformation.

Tencent’s ongoing partnerships, such as the integration of JD Logistics with Taobao and Tmall, reflect its strategy of extending its influence across China’s digital ecosystem.

AI-Driven Innovations: A Key Pillar of Future Growth

Tencent’s AI investments came to the forefront with the launch of Hunyuan Turbo, an upgraded foundation model leveraging a heterogeneous Mixture-of-Experts (MoE) architecture. This model delivers double the training and inference efficiency at half the cost compared to its predecessor, underscoring Tencent’s commitment to deploying cutting-edge AI across its businesses.

The company has integrated AI capabilities into various offerings, from personalized gaming experiences to Weixin’s search algorithms and targeted marketing services. These initiatives aim to enhance operational efficiency and deliver value to users and advertisers.

Financial Strength and Shareholder Returns

Tencent continues to demonstrate financial resilience, with gross profit rising 16% YoY to RMB 88.8 billion and non-IFRS profit for equity holders increasing 33% YoY to RMB 59.8 billion. Free cash flow stood at RMB 58.5 billion, reflecting strong operational performance.

The company’s share repurchase program, totaling HKD 35.9 billion during the quarter, underscores its commitment to delivering shareholder value. With net cash of RMB 95.5 billion, Tencent is well-positioned to pursue strategic investments and initiatives.

Challenges and Strategic Focus

While Tencent’s diverse portfolio shields it from sector-specific risks, challenges such as fluctuating consumer spending in FinTech services and intensified competition in the cloud space remain. However, its strategic investments in AI, content, and ecosystem integration signal a clear focus on long-term growth.

Tencent’s third-quarter performance highlights its ability to adapt and thrive in a rapidly evolving market. By aligning its core businesses with emerging trends in AI, digital transformation, and consumer engagement, Tencent is not just navigating challenges but setting a course for sustainable growth.

Tencent’s Q2 2024 Results

Tencent Holdings announced its unaudited consolidated results for the second quarter of 2024, showcasing robust growth and strategic advancements across its diverse business segments. The company’s performance underscores its commitment to leveraging its platform plus content strategy, with notable successes in both domestic and international markets.

WeChat Video Accounts and Mini Programs:

Video Accounts: Tencent reported a substantial year-on-year increase in total user time spent on Video Accounts, driven by enhanced recommendation algorithms and an expanded array of local content. The company is systematically strengthening transaction capabilities within this platform to deliver seamless shopping experiences, thereby driving sales for merchants.

Mini Programs: The total user time spent on Mini Programs also grew by over 20% year-on-year, benefiting from the platform’s robust commerce and content ecosystem. Notably, the gross merchandise value (GMV) facilitated by Mini Programs experienced double-digit percentage growth, and total gross receipts from Mini Games increased by over 30% year-on-year.

Tencent Channels and Long-form Video

Tencent Channels: This community-based platform, which evolved from QQ, was rebranded and upgraded to enable moderators to manage channels with customizable tools. Users can now interact through text, image, and live streaming features, accessible from Weixin/WeChat, game apps, and QQ.

Tencent Video: The release of popular drama series fueled a 13% year-on-year growth in long-form video subscriptions, reaching 117 million subscribers. Notable titles like “Joy of Life 2” and “The Legend of Shen Li,” based on IPs from China Literature and produced by New Classics Media, were significant contributors to this growth.

Gaming

Domestic Games: Tencent’s flagship domestic games, such as “Honour of Kings” and “Peacekeeper Elite,” resumed year-on-year growth in gross receipts. Additionally, “Naruto Mobile” achieved a new milestone with 10 million monthly average daily active users (DAU) in May 2024, while the newly launched “DnF Mobile” showed promising retention rates.

International Games: International Games revenues reached RMB13.9 billion, marking a 9% year-on-year increase. “Brawl Stars,” with frequent content updates and social features, achieved a historical high in quarterly average DAU and saw gross receipts grow more than tenfold year-on-year.

Advertising and AI Initiatives:

Online Advertising: Revenues from online advertising increased by 19% year-on-year, primarily due to the strong performance of Video Accounts and long-form video advertising. The company upgraded its advertising technology platform to analyze user interests more effectively, resulting in deeper insights and more relevant ad recommendations.

AI Initiatives: Leveraging its top-tier foundation model, Tencent Hunyuan, the company released its AI assistant application, Yuanbao, to the public. Yuanbao is noted for its competitive strengths, including accurate image understanding, advanced natural language processing, and enhanced AI search capabilities.

Financial Highlights

Tencent’s financial performance in Q2 2024 was marked by significant growth across key metrics, reflecting the company’s successful execution of its strategic initiatives.

• Total Revenues: Tencent’s total revenues for the second quarter reached RMB161.1 billion (USD22.6 billion), representing an 8% increase year-on-year.
• Gross Profit: The company reported a gross profit of RMB85.9 billion (USD12.1 billion), a 21% increase compared to the same period last year, with a gross margin of 53%.
• Non-IFRS Operating Profit: On a non-IFRS basis, operating profit grew by 27% year-on-year to RMB58.4 billion (USD8.2 billion), with an operating margin of 36%.
• Net Profit: Profit attributable to equity holders of the company increased by 53% year-on-year to RMB57.3 billion (USD8.0 billion), highlighting strong profitability.
• Free Cash Flow: Tencent generated RMB40.4 billion (USD5.7 billion) in free cash flow during the quarter, up 35% year-on-year, contributing to a total cash position of RMB415.2 billion (USD58.3 billion).
• Shareholder Returns: The company repurchased approximately 103.7 million shares on the Hong Kong Stock Exchange for a consideration of HKD37.5 billion and paid a final dividend of HKD31.7 billion for the year ended December 31, 2023.

Tencent’s Q2 2024 results underscore the company’s resilience and adaptability in a competitive market, with its diverse business segments continuing to deliver strong growth and profitability.

Tencent’s Impressive Q1 2024 Financial Performance Sets Strong Foundation for Future Growth

Tencent Holdings Limited has announced its unaudited consolidated results for the first quarter of 2024, showcasing robust growth across various sectors despite challenging market conditions.

The company, a leading internet and technology conglomerate in China, has reported substantial improvements in gross profit and net profit, reflecting its strategic focus on high-quality revenue streams and innovative technological advancements.

Strategic Initiatives and Business Review

Tencent’s latest quarterly results highlight the company’s dynamic approach to growth and innovation. The tech giant has focused on enhancing its core business segments while venturing into new revenue streams, leveraging its technological prowess and market leadership.

In the gaming sector, Tencent continues to solidify its dominance both domestically and internationally. Several flagship titles, including “Fight of the Golden Spatula” and “CrossFire Mobile,” achieved record-high gross receipts. Meanwhile, international hits like “PUBG Mobile” and Supercell’s “Brawl Stars” reported impressive gains in user engagement and revenue, underscoring Tencent’s global appeal in the gaming industry.

The company has also made significant strides in digital content. WeChat Video Accounts saw a dramatic increase in user engagement, with total user time spent rising by over 80% year-over-year.

Similarly, Mini Programs, a staple feature of WeChat, reported a 20% increase in user engagement, reflecting Tencent’s ability to continuously innovate and expand its ecosystem.

Tencent’s advertising sector has benefited greatly from its advancements in AI technology. The introduction of generative AI-powered tools has revolutionized its advertising platform, resulting in higher engagement and more effective ad campaigns. This innovation has been particularly impactful for Video Accounts and Mini Programs, driving substantial growth in advertising revenue.

In the FinTech arena, Tencent’s wealth management business has shown robust growth, marked by a surge in user numbers and average fund investments. Tencent Cloud Media Services, a leader in the media and entertainment sectors, has maintained its strong market position, further demonstrating the company’s diverse and resilient business model.

Operating Metrics

• Combined MAU of Weixin and WeChat: 1,359 million, a 3% YoY increase.
• Mobile Device MAU of QQ: 553 million, a 7% YoY decrease.
• Fee-based VAS Registered Subscriptions: 260 million, a 12% YoY increase.
• Video Accounts Total User Time Spent: Increased over 80% YoY.
• Mini Programs Total User Time Spent: Increased over 20% YoY.

Financial Highlights

Tencent’s financial performance in Q1 2024 reflects its strategic focus and operational efficiency:

• Total Revenues: RMB 159.5 billion ($22.5 billion), a 6% year-over-year (YoY) increase.
• Gross Profit: RMB 83.9 billion ($11.8 billion), up 23% YoY.
• Non-IFRS Operating Profit: RMB 58.6 billion ($8.3 billion), a 30% YoY increase.
• Net Profit Attributable to Equity Holders: RMB 50.3 billion ($7.1 billion), up 54% YoY.

Segment Performance

• Value-Added Services (VAS): Revenue slightly decreased by 0.9% YoY to RMB 78.6 billion, with social networks and domestic games experiencing minor declines, while international games revenue grew by 3%.
• Online Advertising: Revenue surged by 26% YoY to RMB 26.5 billion, driven by increased engagement and enhanced AI-powered ad targeting.
• FinTech and Business Services: Revenue increased by 7% YoY to RMB 52.3 billion, with solid growth in cloud services and wealth management.

Tencent’s first-quarter results highlight its resilient business model and strategic adaptability. The company’s revenue growth, though moderate, is accompanied by a substantial increase in gross profit and operating margin, indicating improved operational efficiency.

Comparing these results with previous quarters and industry peers, Tencent stands out for its balanced growth across diverse revenue streams. The company’s focus on high-margin businesses, such as cloud services and digital content, is a strategic move that is paying off well.

According to data from Alibaba Group’s e-commerce and travel platforms, the game’s impact has been felt far beyond the virtual world.

Video Game Sales Skyrocket

On the day of its release, “Black Myth: Wukong” caused a significant increase in video game-related purchases on Alibaba’s Taobao platform, a major C2C e-commerce site in China, according to Alibaba’s blog Alizila.

Video game sales on Taobao surged by 130% compared to the previous week, while searches for the game title spiked nearly 14 times. The game has captured the attention of Chinese gamers with its immersive graphics and engaging storyline based on the classic Chinese novel “Journey to the West”.

The demand for gaming consoles also saw a notable increase, with PlayStation 5 (PS5) sales doubling year-on-year in the week leading up to the game’s release.

The console maintained the top spot in Tmall’s video game equipment rankings for four consecutive days, reflecting the growing enthusiasm for high-quality gaming experiences among Chinese consumers.

Tmall’s game consoles category reported an 80% year-on-year increase in sales, further underscoring the game’s influence on the market.

Additionally, Alibaba’s second-hand trading platform Xianyu experienced a 300% increase in searches for PS5 consoles in August, highlighting the widespread interest in gaming hardware.

Tourism Boom in Shanxi Province

Beyond the gaming sector, “Black Myth: Wukong” has also reignited interest in China’s rich cultural heritage, particularly in Shanxi province.

The game’s stunning visuals, inspired by Shanxi’s ancient temples, carved grottoes, and rugged mountains, have captivated players and spurred a tourism boom in the region. On Fliggy, Alibaba’s online travel platform, searches for Shanxi locations and accommodations doubled month-on-month on the day of the game’s release.

The province, home to three UNESCO World Heritage Sites and the only remaining structures from the Tang dynasty, has seen a 70% year-on-year increase in tourism bookings this summer, according to Fliggy.

This surge includes ticket orders and car rentals, indicating a broad interest in exploring the historical and cultural sites depicted in the game.

Many netizens from Beijing, as well as residents from Shanghai, Zhejiang, and Henan, have been driving searches for Shanxi destinations on Fliggy, eager to experience the real-life locations that inspired the game’s enchanting world.

Broader Implications for China’s Gaming and Tourism Sectors

The success of “Black Myth: Wukong” is a testament to the growing intersection between digital entertainment and cultural tourism in China.

As a single-player game that allows players to explore a richly detailed version of ancient China, it has not only set a new benchmark for gaming experiences but also sparked renewed interest in the country’s cultural heritage.

The game’s impact on both the gaming and tourism sectors demonstrates the potential for digital media to drive real-world economic activity.

According to a survey by gaming industry consultancy Niko Partners, 62% of PC gamers in China reported spending more in the first quarter of 2024 compared to the same period last year, reflecting a broader trend of increased investment in gaming.

As “Black Myth: Wukong” continues to captivate players around the world, its influence on consumer behavior in China is likely to grow, offering a unique example of how digital entertainment can transcend screens and inspire real-world exploration and spending.

This trend could lead to further integration of cultural themes in video games and potentially more collaborations between the gaming industry and tourism sectors to leverage the storytelling power of games to promote travel and cultural appreciation.

Financial Highlights: A Glimpse into Growth

Tencent’s fiscal narrative for 2023 is one of notable achievements, underscored by a 10% year-over-year growth in total revenues, reaching an impressive RMB609.0 billion (USD86.0 billion).

This expansion is further emphasized by a 23% increase in gross profit, showcasing the company’s enhanced profitability in a fiercely competitive digital marketplace. Furthermore, the non-IFRS profit attributable to equity holders witnessed a substantial 36% increase from the previous year, indicating strong core earnings performance .

The final quarter of 2023 continued this trend, with revenues escalating by 7% year-over-year to RMB155.2 billion (USD21.9 billion), and gross profit and non-IFRS profit attributable to equity holders of the company experiencing significant increases of 25% and 44% respectively.

In 2023, Tencent’s revenue breakdown highlighted the diversity of its business portfolio, with significant contributions from various segments.

The FinTech and Business Services sector emerged as the largest revenue source, representing 31% of the total revenue and amounting to RMB189.0 billion. This segment’s leading position underscores Tencent’s stronghold in the FinTech industry and its successful foray into comprehensive business services.

Following the FinTech and Business Services sector, the Online Games segment was the second-largest contributor to Tencent’s revenue, accounting for 29% and totaling RMB177.0 billion. This demonstrates the continued vitality of online gaming within Tencent’s business model.

The fastest-growing segment in 2023 was Tencent’s Cloud Computing business, which experienced a remarkable 30% year-over-year revenue increase, reaching RMB109.0 billion. This growth outpaced the other segments, notably the Social Networks segment, and underscored Tencent’s effective strategy and execution in the competitive cloud services market.

Overall, Tencent’s 2023 financial performance showcased the strength of its FinTech and Business Services as the leading revenue generator, with the Cloud Computing segment leading in growth, reflecting the company’s adaptability and strategic positioning in China’s evolving digital landscape.

Strategic Endeavors and Innovation

2023 saw Tencent advance through strategic milestones:

Enhancing User Experience: Tencent’s WeChat Video Accounts doubled in user time spent, thanks to improved algorithms and creator support. Additionally, the Mini Games platform’s gross receipts soared by over 50%, reinforcing Tencent’s leadership in China’s casual gaming sphere .

Pioneering in AI: The launch of Tencent Hunyuan, an AI model of a trillion-parameter scale, marks a leap in Tencent’s technological prowess, solidifying its commitment to spearheading digital innovation .

Commitment to Society and Environment: Tencent’s digital philanthropy platform set a new record with RMB3.8 billion raised during the 99 Giving Day campaign, while its New Cornerstone Investigator Program supported 104 scientists, promoting scientific research .

As of the end of 2023, Tencent Music Entertainment Group (TME) reported a notable increase in its music subscribers. The total number of online music paying subscribers reached 90 million, marking an 18% year-over-year growth.

Market Engagement and User Dynamics

Tencent’s operational statistics reveal evolving trends in user engagement:

• The MAUs of Weixin and WeChat stood at 1,343 million by December 2023, a 2% increase year-over-year, highlighting the platforms’ expanding influence in social media .
• Despite a marginal decline in VAS revenues, Tencent’s strategic emphasis on content diversity and innovative services positions it for sustained growth amidst market challenges .

Tencent’s 2023 saga is one of strategic brilliance and financial vigor, positioning it at the forefront of China’s digital transformation. With its commitment to innovation, user-centricity, and societal impact, Tencent is poised to continue shaping the contours of China’s digital future.

Mobile reach in China: Tencent, Alibaba, Baidu, ByteDance, vs. Kuaishou

Net income attributable to HUYA Inc. was RMB524.4 million (US$81.4 million) for the third quarter of 2021, compared with RMB253.0 million for the same period of 2020.

Non-GAAP net income attributable to HUYA Inc. was RMB180.0 million (US$27.9 million) for the third quarter of 2021, compared with RMB361.2 million for the same period of 2020.

The average mobile MAUs of Huya Live in Q3 2021 increased by 14.7% to 85.1 million, from 74.2 million in the same period of 2020. The total number of paying users of Huya Live in the third quarter of 2021 reached 6.0 million, compared with 6.0 million in the same period of 2020.

China eSports market overview and forecast

Centered around the theme of the ‘Spirit of Nature’, this collaboration draws upon Burberry’s longstanding exploration of the relationship between humans and nature.

The fashion house’s affinity to the outdoors links harmoniously with Honor of King’s character Yao, who embodies the spirit of nature and is able to take the form of a deer – also an expression of the Burberry animal kingdom house code.

In keeping with the fashion house’s signature gabardine, pioneered by founder Thomas Burberry and designed to protect its wearer against the elements, Yao plays the role of a protector for her fellow gamers within Honor of Kings.

Yao’s two exclusive skins have been inspired by Burberry house codes as reinterpreted by Riccardo. Seamlessly blending the physical and digital worlds, Yao’s ‘Spirit of Nature’ new skin draws upon Burberry’s rich heritage and includes references to the iconic House check, the trench coat, and the Thomas Burberry Monogram.

Burberry launched its first luxury social retail store, empowered by WeChat

This skin draws upon the classicism of these Burberry hallmarks and reinvents them into a modern look for Yao to reflect her strong, dynamic and adventurous character.

Yao’s ‘Spirit of Nature’ deer takes a mirrored form, drawing upon Riccardo’s fascination with the concept of duality and the creativity found in two perspectives.

In Honor of King’s first collaboration with a brand on its ‘Legend’ skin offering, Burberry has co-created a ‘Spirit of the Forest and Ocean’ Legend skin for Yao using one of the runway looks from the house’s Spring/Summer 2021 collection ‘In Bloom’ – a collection inspired by thoughts of regeneration, dynamic youth and reconnecting with nature.

Yao’s look draws upon the collection’s mythical marine references and features a statement warm royal blue collarless trench coat and a crystal-embroidered vest. Mirroring the essence of the look, the ‘Spirit of the Forest and Ocean’ Legend deer pulsates blue light through its crystal body.

Building upon the existing partnership between the luxury fashion house and Tencent, this collaboration continues to reflect Burberry’s ambitions to push boundaries through innovation and creativity, enabling the Burberry community to explore the digital realm of Honor of Kings in an exciting new concept.

The exclusive Burberry skins will be available to purchase for all Honor of Kings players in mainland China. The skins will then remain part of the players’ permanent collection.

China luxury consumer behavior study 2020

The net income attributable to HUYA Inc. was RMB171.2 million (US$24.2 million) for Q1 2020, representing an increase of 169.8% YoY from RMB63.5 million.

Non-GAAP net income attributable to Huya was RMB263.4 million (US$37.2 million) for Q1 2020, representing an increase of 100.7% YoY from RMB131.3 million.

The average mobile MAUs of Huya Live in the first quarter of 2020 reached 74.7 million, an increase of 38.6% YoY from 53.9 million. The average MAUs of Huya Live reached 151.3 million, an increase of 22.2% YoY.

The total number of paying users of Huya Live in Q1 2020 reached 6.1 million, an increase of 13.0% YoY from 5.4 million.

Since Tencent became its largest shareholder in April 2020, they have been strengthening their collaboration, especially in live streaming content and capabilities.

Huya Financial Results in Q1 2020

Total net revenues for the first quarter of 2020 increased by 47.8% to RMB2,411.9 million (US$340.6 million), from RMB1,631.5 million for the same period of 2019.

Live streaming revenues increased by 46.5% to RMB2,274.5 million (US$321.2 million) for the first quarter of 2020, from RMB1,552.5 million for the same period of 2019, primarily due to the increase in average spending per paying user and the number of paying users on Huya Live.

The increase in average spending per paying user was primarily driven by the enhancement of content attractiveness and the improvement in user experience. The increase in the number of paying users was primarily driven by the Company’s user growth.

Advertising and other revenues increased by 74.0% to RMB137.5 million (US$19.4 million) for the first quarter of 2020, from RMB79.0 million for the same period of 2019, primarily driven by the rising demand from an increasing number of advertisers, the advertising distribution platform launched by the Company in the third quarter of 2019 and strengthened recognition of Huya’s brand name in China’s online advertising market.

Cost of revenues increased by 42.6% to RMB1,937.1 million (US$273.6 million) for the first quarter of 2020 from RMB1,358.1 million for the same period of 2019, primarily attributable to the increase in revenue-sharing fees and content costs, bandwidth costs and personnel-related costs.

Revenue sharing fees and content costs increased by 37.7% to RMB1,532.6 million (US$216.4 million) for the first quarter of 2020 from RMB1,113.1 million for the same period of 2019, primarily due to the increase in virtual item revenue sharing fees in relation to higher live streaming revenues, and continued spending in content creators and e-sports content in both domestic and overseas markets.

The year-over-year increase was partially offset by benefits from economies of scale.

Bandwidth costs increased by 42.1% to RMB240.1 million (US$33.9 million) for the first quarter of 2020 from RMB169.0 million for the same period of 2019, primarily due to an increase in bandwidth usage as a result of the Company’s larger user base and enhanced live streaming video quality, partially offset by improved efficiency in bandwidth utilization through continued technology enhancement efforts.

Gross profit increased by 73.7% to RMB474.8 million (US$67.1 million) for the first quarter of 2020 from RMB273.4 million for the same period of 2019. The gross margin increased to 19.7% for the first quarter of 2020 from 16.8% for the same period of 2019.

Research and development expenses increased by 73.3% to RMB156.1 million (US$22.0million) for the first quarter of 2020 from RMB90.0 million for the same period of 2019, mainly attributable to increased personnel-related expenses.

Sales and marketing expenses increased by 36.3% to RMB106.5 million (US$15.0 million) for the first quarter of 2020 from RMB78.2 million for the same period of 2019. The increase was primarily attributable to the increased marketing expenses associated with the promotions for the Company’s products and brand name in both domestic and overseas markets, as well as increased personnel-related expenses.

General and administrative expenses increased by 5.1% to RMB90.2 million (US$12.7 million) for the first quarter of 2020 from RMB85.8 million for the same period of 2019, mainly due to the increased personnel-related expenses.

Operating income increased by 372.5% to RMB133.3 million (US$18.8 million) for the first quarter of 2020 from RMB28.2 million for the same period of 2019. The operating margin increased to 5.5% for the first quarter of 2020 from 1.7% for the same period of 2019.

Non-GAAP operating income, which excludes share-based compensation expenses, increased by 136.5% to RMB227.2 million (US$32.1 million) for the first quarter of 2020 from RMB96.0 million for the same period of 2019. Non-GAAP operating margin increased to 9.4% for the first quarter of 2020 from 5.9% for the same period of 2019.

Income tax expenses increased by 98.0% to RMB37.6 million (US$5.3 million) for the first quarter of 2020 from RMB19.0 million for the same period of 2019.

Net income attributable to HUYA Inc. for the first quarter of 2020 increased by 169.8% to RMB171.2 million (US$24.2 million), from RMB63.5 million for the same period of 2019.

Non-GAAP net income attributable to HUYA Inc. for the first quarter of 2020, which excludes share-based compensation expenses, gain on fair value change of investments, and income tax effects on non-GAAP adjustments, increased by 100.7% to RMB263.4 million (US$37.2 million), from RMB131.3 million for the same period of 2019.

Diluted net income per American depositary share (“ADS”) was RMB0.73 (US$0.10) for the first quarter of 2020, compared with RMB0.29 for the same period of 2019. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP diluted net income per ADS was RMB1.12 (US$0.16) for the first quarter of 2020, compared with RMB0.59 for the same period of 2019.

As of March 31, 2020, the Company had cash and cash equivalents, short-term deposits and short-term investments of RMB10,316.7 million (US$1,457.0 million), compared with RMB6,329.1 million as of March 31, 2019.

Net cash provided by operating activities decreased to RMB135.1 million (US$19.1 million) for the first quarter of 2020, from RMB501.7 million for the same period of 2019. The decrease was primarily attributable to the increase of annual cash bonuses paid to its employees, the increase of fees paid to broadcasters and the increase of licensing fees paid for broadcasting e-sports tournaments.

For the second quarter of 2020, Huya currently expects total net revenues to be in the range of RMB2,600 million to RMB2,630 million, representing a year-over-year growth of between 29.3% and 30.8%.

Revenues from mobile gaming rose 37.6% QoQ to 55.4 billion yuan (US$7.80 bn), accounting for 75.6% of total gaming revenues in the Chinese market. Revenues from computer-based games fell 1.1% QoQ.

Domestic market revenues from Chinese game developers increased by 29.7% QoQ to 62.4 billion yuan while overseas market revenues rose 31.2% to US$3.8 billion. The US, Japan, and South Korea are the main revenue sources, accounting for 67.6% of total overseas revenues.

The number of gaming users in China grew to 654 million in Q1 2020, an addition of 2 million from Q4 2019. Female gaming users increased by 17.05% QoQ in Q1 2020 with 19.24 billion yuan revenues. E-sports gaming users grew by 8.31% with total revenues of 39.1 billion yuan in Q1 2020.

China per capita income down 3.9% in Q1 2020, expenditure down 12.5%

Douyu’s quarterly average paying user count in the fourth quarter of 2019 increased by 70.8% to 7.3 million from 4.2 million in the same period of 2018.

Fourth Quarter 2019 Highlights

• Total net revenues for Q4 2019 increased by 77.8% to RMB2,062.9 million (US$294.9 million) from RMB1,160.2 million in Q4 2018.
  • Live streaming revenues increased by 84.1% to RMB1,892.5 million (US$270.5 million) from RMB1,028.1 million in Q4 2018, primarily driven by the increase in both the number of paying users and ARPPU
• Gross profit increased by 934.6% to RMB375.2 million (US$53.6 million) from RMB36.3 million in the same period of 2018, implying a gross margin of 18.2% in Q4 2019, compared with 3.1% in Q4 2018.
• Net income was RMB157.4 million (US$22.5 million), compared with a loss of RMB271.4 million in Q4 2018, implying a net margin of 7.6% in Q4 2019.
• Adjusted net income was RMB186.4 million (US$26.6 million), implying an adjusted net margin of 9.0%, compared with an adjusted net loss of RMB232.5 million in the same period of 2018.

Full Year 2019 Highlights

• Total net revenues in the full year of 2019 increased by 99.3% to RMB7,283.2 million (US$1,041.1 million) from RMB3,654.4 million in the same period of 2018.
• Gross profit in the full year of 2019 increased by 692.0% to RMB1,196.2 million (US$171.0 million) from RMB151.0 million in the same period of 2018, implying a gross margin of 16.4% in the full year of 2019, compared with 4.1% in the same period of 2018.
• Net income in the full year of 2019 was RMB33.3 million (US$4.8 million), compared with a net loss of RMB876.3 million in the same period of 2018, implying a net margin of 0.5% in the full year of 2019.
• Adjusted net income in the full year of 2019 was RMB346.4 million (US$49.5 million), implying an adjusted net margin of 4.8%, as compared with an adjusted net loss of RMB818.5 million in the same period of 2018.

Huya expects its total net revenues to be in the range of RMB2,100 million to RMB2,160 million in the first quarter of 2020, representing year-over-year growth between 41.0% and 45.0%.

Check out its competitor Huya’s Q4 performance here.

The average mobile MAUs of Likee (formerly known as Like) increased by 208.3% to 115.3 million in Q4 2019 from 37.4 million in Q4 2018.

The average mobile MAUs of JOYY’s global live streaming services increased by 21.5% to 158.9 million from 130.8 million in Q4 2018, 102.8 million of which were from China, including 41.2 million from YY, which increased by 3.8% year over year, and 61.6 million from Huya, which increased by 21.5% year over year.

56.1 million live streaming MAUs were from outside of China, including 23.1 million from BIGO LIVE, which increased by 18.6% year over year, and 33.0 million from HAGO (casual-game-oriented social media platform), which increased by 57.9% year over year.

Average mobile MAUs of imo was 211.0 million.

The total number of paying users of YY increased by 9.8% to 4.5 million from 4.1 million in Q4 2018. Total number of paying users of Huya increased by 5.9% to 5.1 million from 4.8 million in Q4 2018. See Huya’s competitor Douyu here.

YY’s financial highlights in Q4 2019:

• YY’s net revenues increased by 64.2% to RMB7,618.2 million (US$1,094.3 million) from RMB4,640.9 million in Q4 2018.
• Net income attributable to controlling interest of JOYY Inc.1 was RMB172.8 million (US$24.8 million), compared to RMB694.7 million in Q4 2018.
• Non-GAAP net income attributable to controlling interest of JOYY was RMB600.8 million (US$86.3 million), compared to RMB846.9 million in Q4 2018, primarily due to the impact of the consolidation of Bigo Inc (“Bigo”)

YY’s net revenues increased by 62.2% to RMB25,576.2 million (US$3,673.8 million) from RMB15,763.6 million in 2018. Net income attributable to controlling interest of JOYY Inc. was RMB3,445.2 million (US$494.9 million), compared to RMB2,209.0 million in 2018.

Non-GAAP net income attributable to controlling interest of JOYY was RMB2,252.6 million (US$323.6 million), compared to RMB3,274.1 million in 2018.

9 Brands’ great results from WeChat Mini Program live streaming campaigns

China’s online gaming market totaled 57.36 billion yuan (US$8.29 bn) in Q2 2018, a negative growth of 10.8% year-on-year and 3.6% quarter-on-quarter.

Mobile games contributed 65.1% to the total online gaming revenue in Q2 2018, a slight drop compared with the previous year. PC games show a growing trend as e-sport increasingly gains popularity and becomes an official item of the international sports events.

Tencent remained its leadership position with the largest share of 53.17% in Q2 2018. Netease and Perfect World took the next two places with a share of 17.54% and 2.7%, respectively. Bilibili moved up to sixth place with a share of 1.38%.

Tencent is the number one public company ($10.2 bn) in the world by game revenues in 2016, followed by Sony ($7.88 bn) according to Newzoo. Another Chinese company Netease also made it to the top 10 ($4.2 bn) whose revenues grew by over 50%.

APAC territories will generate $46.6 billion in 2016, or 47% of total global game revenues according to Newzoo.

China alone accounts for half of APAC’s revenues, reaching $24.4 billion in 2016 to cement its place as the largest games market in the world, ahead of the US’s anticipated market size of $23.5 billion. China will remain the largest games market for the foreseeable future, growing to $28.9 billion by 2019.

Top 10 Public Companies by game Revenues

Consolidation of the Top 10

The current top 10 public companies by game revenues accounted for 54% of the global games market in 2016, up from 43% in 2015.

Related: China online gaming market overview 2011-2019

China online gaming market reached 177 billion yuan (US$25.7 bn) in 2016 and is estimated to grow to exceed 232 billion yuan (US$33.69 bn) in 2019 according to data from iResearch.

The proportion of mobile games grow to over 56% in 2016 and will exceed 66% in 2019. The total number of mobile gaming users is 521 million and the PC end has 484 million users in 2016.

Tencent is the top online gaming company by revenues with 325.2 billion yuan (US$47.23 bn) revenues from PC and 383.4 bn yuan (US$55.68 bn) from mobile, followed by Netease (PC: 108.3 bn yuan/US$15.73 bn; mobile: 165.1 bn yuan/US$23.98 bn).

This article is an excerpt from EBook – China Internet Insights 2017

China online gaming market reached RMB 41.6 billion (US$6.24 billion) in Q2 2016, an increase of 24.2% YoY or 0.9% QoQ.

China mobile gaming market reached RMB 24.4 billion (US$3.66 bn) in Q2 2016, an increase of 120.3% YoY or 15.5% QoQ. Mobile accounted for 58.7% of China’s total online gaming market in Q2 2016.

Paid games ratio of mobile role play games and chess games are higher than card and action games in China in 2016 according to TalkingData.

Chess games earned the most DAU/MAU on both iOS operating systems and Android operating systems.

In terms of average weekly active rate, strategy games had the highest average weekly rate of 9.74% by Android operating system users, followed by leisure games (9.29%) and simulation games (8.89%); on iOS, chess games had the highest average weekly active rate of 10.16%, followed by leisure games (9.42%) and puzzle games (9.27%).

In terms of average monthly active users rate, action games had the highest with average monthly active rate of16.93% on Android operating systems while chess games enjoyed the highest on iOS operating systems.

The average one-day player active rate of card games was the lowest (43.37%) on Android operating systems while that of action games was the highest (53.21%). On iOS operating systems, the puzzle games had the lowest one-day player active rate of 36.94% while that of role play games was the highest (49.72%).

The highest next-day retention rate of mobile games on Android operating systems was card games (27.88%) while on iOS systems it was action games (36.21%).

China’s Chess games remained the highest on 7-day retention rate on both Android operating systems (9.55%) and iOS operating systems (12.38%).

Chinese users played strategy games the most, about 4.91 times a day on average on Android operating systems and 5.53 times a day on average on iOS operating systems.

Android operating system users played role play games for 640 seconds a day on average; and, iOS operating system users played strategy games for 1079 seconds a day on average. Both the two mobile games had more average usage seconds among other mobile games.

In 2012, mobile accounted for just 5.4% of all gaming in China. Last year, it accounted for a whopping 36.6%, if you include the export value (as DataEye does) according to Lisa Hanson, a contributor who covers PC, console and mobile games industry in Asia.

The number of China’s gaming players is to reach 534 million with an increase of 3.3% YoY in 2015. The overall gaming market in China totals 140.70 billion yuan (US$21.71 billion) with an increase of 22.9% YoY this year according to China Gaming Industry Annual Conference, including client-based games, web page games, social games, mobile games, single-player games, and TV games.

Online gaming market developed independently in China reached 98.67 billion yuan (US$15.22 billion) in revenues with an increase of 35.8% YoY. Actual export sales of self-developed online games in China reached US$5.31 billion with an increase of 72.4% compared to the previous year.

Actual sales of China’s client-side gaming market reached 61.16 billion yuan (US$9.44 billion) with an increase of 0.4% YoY. Web gaming market reaches 21.96 billion yuan (US$3.39 billion) in revenues with an increase of 8.3% YoY; mobile gaming market reached 51.46 billion yuan (US$7.94 billion) with an increase of 87.2% YoY. And, console gaming market reached 140 million yuan (US$21.60 million) with an increase of 180% YoY. TV gaming market reached 220 million yuan (US$33.94 million).

About 750 games have been approved in 2015 to publish by the State Administration of Press, Publication, Radio, Film and Television of China, among which client games accounted for 11.2%, web games 32.8%, mobile games 49.7%, and TV games 6.3%. The top three regions of most published games are Shanghai (51.2%), Beijing (16.2%), and Guangdong (9.0%).

The number of China’s public listed gaming companies reached 171 with a total market value of 4,761 billion yuan, 79.6% of which are listed on A-share stock exchanges accounting for 65.2% of total market value. 9.9% are listed in Hong Kong accounting for 32.3% total market value; 10.5% in the U.S accounting for 2.5% of total public listed gaming companies’ market value.

Also read: China’s Mobile Internet Insights Q1-Q3 2015

China’s online gaming market reached 35.39 billion (US$5.51 billion) in the third quarter of 2015 with an increase of 5.5% QoQ and 24.5% YoY according to iResearch.

Mobile gaming accounted for 35.1% China online gaming market while online gaming declined in terms of transactions.

Mobile gaming has become the driving force of China online gaming market. As users spent more and more time on smartphones and mobile games, the mobile gaming market was expected to exceed PC client online gaming.

The mobile gaming market in Q3 2015 was predicted to reach 12.41 billion (US$1.89 billion) with an increase of 11.9% QoQ and 72.0% YoY although Analysys, another Chinese research company, predicted it would reach 14.66 billion yuan (US$2.28 billion) in Q3 2015.

The increase was mainly due to more severe competitive game categories as FPS and MOBA and increasing IP games which have brought more traffic and fans. What’s more, a large number of students are obsessed with mobile gaming during summer holidays in August and September.

The most popular mobile games were role play games, cards games and chess games in the third quarter of 2015. China’s mobile gaming players are expected to reach 360 million generating transactions of US$50.1 billion according to RecordJapan, and the average weekly usage will be as long as 4.3 hours in 2015.

The overall online gaming market in China this year is expected to reach $22.2 billion (about 142 billion yuan), and officially surpass the U.S. as the world’s largest online gaming market according to data of TalkingData and Newzoo.

Also read: China’s Mobile Internet Insights Q1-Q3 2015

In 2015, Chinese online gaming market is expected to reach $22.2 billion (about 142 billion yuan), and officially surpass the U.S. as the world’s largest online gaming market according to data of TalkingData and Newzoo. Mobile gaming revenue of China in 2015 is estimated to reach $6.5 billion (about 41.6 billion yuan), surpassing Japan and the United States to become the world’s largest mobile gaming market.

In 2014, the world’s top ten online gaming countries and regions by revenues are the United States, China, Japan, Korea, Germany, Britain France, Canada, Spain and Italy; and by 2018, China will reach the top; Brazil and Mexico will become the seventh and tenth respectively.

In 2013, China surpassed Japan to become the world’s second-largest online gaming market, following the United States. However, in only wo years, China will take the top spot and reach nearly 2 times that of Japanese online gaming market revenues. By 2016, the Chinese gaming market will increase to $26.2 billion (about 167.7 billion yuan) ahead of the U.S. $22.6 billion (144.6 billion yuan), and expected to reach $30 billion (about 192 billion yuan) in 2018.

Although the Chinese online gaming market represents a very big opportunity, the main revenue of current Chinese game industry still comes from local developers and local games. European and American developers may enter China indirectly during the process. For example, Tencent has been seeking for more developers from Europe and American.

About 4.8% of American mobile gaming players would spend a lot on gaming, compared to 2.6% in China. In terms of demographics, the amounts of highest consumption players between the two countries are similar, but the ratio of women is slightly higher in China. In the U.S., the largest age level of high-spend users (48%) is male between 21 to 35 year-old; in China the largest age level of high-spend users (43%) is also between 21 to 35 years old.

In 2015, top 10 western publishers by Android revenues in China are Supercell, Mojang, Raleigh, PopCap and Gameloft. Top 10 Chinese publishers by Android revenues in China are Tencent, NetEase, Yingan Games, Happy Elements and iDreamsky.

In the Chinese online gaming market, the top 20 games revenues accounts for 74.2% of top 100 total revenues, compared to 61.3% in the U.S.. In 2015, the U.S. market is expected to reach 3.5% increase up to $22 billion in revenue. Despite the common misconception that the U.S. mobile gaming market has reached a saturation stage, the smartphones and tablet games will still maintain a 13.4% and 17.8% annual growth rates respectively and reach $6 billion in revenue (27% of total).

Also read: China Mobile Gaming Market in H1 2015

In H1 2015, the total transaction revenue of China’s gaming market reached 60.51 billion yuan (US$9.73 billion), an increase of 21.9% compared with the same period of last year. The transaction revenue of self-developed online gaming market reached 45.83 billion yuan (US$ 7.37 billion), accounting for 75.7%; and the overseas market revenue was US$1.76 billion, according to GPC, IDC and CNG.

Client-end gaming users reached 134 million in China. And, the actual transaction revenue reached 26.71 billion yuan (US$ 4.29 billion), with an increase of 4.5% compared with the same period in 2014. The number of webpage gaming users in China reached 305 million; the transaction revenue reached 10.28 billion yuan, with an increase of 12.0% YoY. China mobile gaming users reached 366 million; the transaction revenue reached 20.93 billion yuan, with an increase of 67.2%. See more about China’s online gaming market here.

China’s mobile gaming is becoming an essential part in China mobile users’ daily life. Users tdend to favor games on mobile devices rather than on computers. In recent years, China’s gaming industry has been developing reasonably, while the penetration of mobile devices, improvement of 3G/4G network and popularity of social platform lead to the rapid growth of mobile online gaming market in China.

And various categories of mobile games, such as card games, mild games, role play games, music games action games and so on together with many newly-launched games attracted the interests of more and more mobile users, especially female users who didn’t play online games at all. In the second half of 2015, China’s mobile gaming market is expected to attract more users.

Also read: Baidu Revenues Reached US$2.67B in Q2 2015

China online gaming market exceeded 30 billion yuan for the first time and reached 32.08 billion yuan (US$ ) in Q1 2015, an increase of 8% QoQ with 24.7% growth YoY according to iResearch.

2015 will be a year full of opportunities and challenges for China mobile gaming market. China female mobile gaming users still have much potential and their habit of paying for games is expected to develop.

Mobile has increasingly become an important platform for China online gaming market with 31% market share.

Also read: RPG & Card Games Most Popular in China Online Gaming Market in 2014

In 2014, total transaction value of China online gaming market was RMB110.81 billion (US$17.95 billion) with an increase of 24.3% YoY. Besides, mobile gaming represented 24.9% market share, which was the first time to surpass browser games in 2014.

In Q4 2014, mobile gaming’s revenue would exceed RMB6 billion according to the research of CNG, IDC and TalkingData.

Also read: China’s Booming Mobile Gaming Market with 330M Users

In the first half of 2014, China gaming market users exceeded 400 million with an increase of 9.5% year on year. The total sales value of China gaming market was RMB49.62 billion (US$8.07 billion) with an increase of 46.4% YoY according to CPC & CNG. ZDC‘s latest data also shows on average an iOS game player spend as much as 3 times more than an Android player in 2014.

Total sales value of China client gaming, browser gaming, mobile gaming, social gaming, and single-player gaming were RMB25.57 billion(US$4.16 billion), RMB9.18 billion (US$1.49 billion), RMB12.52 billion (US$2.03 billion), RMB 2.34 billion (US$380.9 million) and RMB10 million (US$1.62 million) respectively.

From January to November in 2014, market share of mobile gaming increased continuously while market share of client gaming is decreasing. As of middle November, client gaming market market share decreased to 53.3% and mobile gaming increased to 33%. However, client gaming still dominated China gaming market in 2014.

2014 is a booming year for China mobile gaming market. According to Nielsen’s research, 47% mobile gaming users play games everyday and 88% of them log in gaming platform for many times per day. China mobile gaming users increased by 62.3% from 2013. As of November 2014, the number of mobile gaming users was 504 million with an increase of 193.5 million. Besides, game usage increased to 62.3% from 2013.

As of 2014, total sales value of China mobile gaming market will exceed RMB20 billion with an increase of 149.4% year on year. It is estimated that total sales value will be RMB35 billion in 2015.

In 2014, there are 500 million mobile gaming users in China which indicates mobile gaming has been one of indispensable entertainment for Chinese. Casual and social games are favored by users in China.

In 2014, 77.4% mobile gaming users use Android OS and only 13.7% of them use iOS to play games according to data of ZDC. However, iOS game users are more willing to pay for entertainment apps, as much as 3 times more than Android game players. Considering large number of Android game users in China, there is great potential in China Android game market.

The peak time for games payment were about 11 a.m-12 p.m and 9 p.m to 10 p.m according to data of 7881.com (a famous game trading platform in China); to strengthen service during peak time may raise users’ second payment possibilities.

61% respondents made Alipay as their first choice to top up game accounts according to the survey of 7881.com. 16% of them pay mobile phone charge for games. Related: China Third Party Online Payment Market in Q3 2014

As of September 30 2014, the top 3 provinces in China by total number of mobile gaming users were Guangdong, Jiangsu and Zhejiang. 60% China mobile gaming users are from tier-3 cities in 2014 which indicates there are great demand for users in tier-3 cities and more opportunities China mobile gaming market in tier-3 cities and lower ones in the future.

Also read: China Browser Games for Children Market to Exceed 2 Bln Yuan in 2016

In Q3 2014, total revenue of China online gaming market exceeded RMB27.76 billion ($4.53 billion). Mobile gaming revenue was RMB6.98 billion ($1.14 billion) with an increase of 72.8% year on year in Q3 2014 according to data of iResearch, which indicates its growth is slowing down.

The number of China’s mobile gaming users was already over 330 million in H1 2014 and it is believed that there is still great potential in online gaming market with its rapid growth in the number of users according to Nielsen.

China mobile games and gaming companies kept rapid growth in Q3 2014. However, compared with July in 2014, the number of gaming companies decreased in August and September.

From January to September 2014, China’s merger and acquisition value of gaming market exceeded RMB32.39 billion ($5.27 billion). China mobile gaming market accounted for 57.8% and mobile gaming related accounted for 89.6% according to the report of China mobile gaming industry published by iResearch.

The report shows value of China merger and acquisition in mobile gaming market in 2014 surpassed the value in 2013 (RMB16.36 billion).

The report estimates that by the end of 2014, total transaction value of China mobile gaming market will be RMB25.28 billion ($4.13 billion)and of web gaming market will be RMB20.56 billion ($3.36 billion). In 2014, it is the first time for total transaction value of China mobile gaming market to surpass value of web gaming market.

The number of China singe-player game was 4,039 with an increase of 30.7% on Android platform, 966 on jailbreak platform and 7 on App Store with a decrease of 41.7% in 2014.

Tencnet mobile games mainly involve games with low & middle difficulty like chess games, puzzle games, card games and ect, which meet large demand of Wechat and QQ mobile users.

Also read: China Mobile Online Gaming Market in Q2 2014

100bt.com, 61.com and Tencent are still top three providers in browser games for children market. It is estimated that browser games for children market has great potential as number of children users is increasing and their gaming habits on the Internet are developing.

It is estimated that total revenue of online gaming market will exceed RMB100 billion ($16.3 billion). In Q2 2014, total revenue of browser gaming market exceeded RMB5.385 billion (US$0.88 billion) with an increase of 3.8% QoQ and it still not so prosperous as QoQ growth rate was less than 10% in four consecutive quarters according to data from EnfoDesk.

It is estimated that total revenue of browser games for children will be over RMB2 billion ($325.8 million) in 2016 in China and the number of users will increase to 69.39 million according to data from iResearch.

Also read: Wechat Social Features Attractive to Mobile Gamers

In Q3 2014, China online gaming market kept stable growth; mobile gaming market’s total transaction value had an increase of 8.2% quarter on quarter. China online gaming companies are positively developing browser games, mobile games in oversea market and having achieved good results.

Total transaction value of China online gaming market exceeded RMB27.76 billion ($4.51 billion) in Q3 2014 with increase of 20.3% year on year and 4.1% quarter on quarter.

Games on desktop were still the key component in China online gaming market, which represented 56.1% market share in Q3 2014. Mobile gaming market is stepping into a stable stage as its growth rate slowed in Q3 2014. Besides, there was a slowdown in number of new games launching among mobile gaming companies in Q3.

In Q3, Perfect World gaming company ranked 3, replacing Shanda Games & Changyou Games (ranked 3 in Q2). China top 5 online gaming companies by total revenue remained Tencent, Netease, Perfect World, Shanda Games and Changyou Games in Q3.

Tencent is the only one whose business structure is similar to online gaming industry structure, covering desktop gaming, browser gaming and mobile gaming market. Its Wechat platform featured with social elements can also attract more mobile game users.

According to the 2014 Second Quarter Mobile Game Market Analysis Report published by Analysys International, CMGE again ranks first among China’s mobile game publishers with 19.3% of market share in China (in terms of gross billings).

In Q3, mobile gaming transaction value was RMB6.98 billion ($1.13 billion) with an increase of 72.8% from the same period of last year. China mobile online gaming users exceeded 321.8 million in Q2 2014 with an increase of 6.4% from prior quarter according to data of GPC IDC and CNG. Influenced by the slowdown of growth rate in smart mobile device shipment and gaming users, China mobile gaming market’s driving force transferred from the size of user base increase to ARPU (Average Revenue Per User) increase in Q3 2014.

As of September 2014, the number of China mobile games and gaming companies exceeded 4,342 and 2,182. Android games and gaming companies both surpassed the ones in Appstore and iOS market. In Q3 2014, China mobile games and gaming companies both had rapid growth quarterly.

Driven by China’s summer holiday (from July to September), gaming companies increased ads placement which stimulated rapid growth of gaming advertisers and gaming products.

In China browser gaming market, the numbers of platforms, games and developers increased steadily in Q3 2014.

From Q2 2014, the number of browser game advertisers and browser games had sharp decrease.

Also read: China Mobile Gaming Market to Reach 2 Bln Yuan in 2014

China mobile online gaming market developed rapidly in 2013. Wechat users exceeded 438 million in China in Q2 2014 and with launch of Wechat’s social gaming platform as well as its games featured with social elements, it will attract more and more mobile gaming users in China.

Chinese gaming users who play on Wechat’s social gaming platform many times per day account for 30.3%. As main categories of games on Wechat are about shooting, running, flying with low difficulty level, 33.4% users play for 10-30 minutes.

We can see when mobile users choose a gaming platform, friends’ presence are the most influential reason, accounting for 49.7%.

On Wechat’s social gaming platform, friends can challenge each within the game and communicate with each other at the same time, which satisfies users’ social and entertainment needs.

We can see the major reason for users to play Wechat games is to compete for the top ranks with friends, which demonstrates Wechat’s powerful social and entertainment features.

China mobile online gaming users exceeded 321.8 million in Q2 2014 with an increase of 6.4% from prior quarter according to data of GPC IDC and CNG.

Also read: China Mobile Online Gaming Market in Q2 2014

China mobile online gaming users exceeded 321.8 million in Q2 2014 with an increase of 6.4% from prior quarter according to data of GPC IDC and CNG. 

Total number of mobile gaming users on smartphones reached 190 million in 2013. In 2013, the total value of mobile gaming market exceeded RMB 11.24 billion ($1.83 billion), with an increase of 246.9% from 2012.

We can see from Q2 2012 to Q2 2014, total mobile online gaming users increased by almost 244 million in China which shows mobile online gaming market is booming nowadays. Rovio’s Angry Birds Stella is also recently available in China via Alibaba mobile apps.

China mobile online gaming users exceeded 321.8 million in Q2 2014 with an increase of 6.4% from prior quarter according to data of GPC IDC and CNG. Baidu, 360 and Tencent were top 3 Android mobile online gaming providers in China mobile gaming market in Q2 2014.

With fast development of mobile online games and well crafted marketing strategy in China, it is estimated that the number of users will further increase.

Also read: Top Mobile Browsers in China

2013 was a year for mobile gaming market development and the total number of mobile gaming users have accounted for over 50% of all the mobile internet users.

In 2013, the total value of mobile gaming market exceeded RMB 11.24 billion($1.83 billion), with an increase of 246.9% from 2012. It is estimated that mobile gaming development has its great potential in gaming market in China according to the report of China Gaming industry in 2013.

Revenue form online games on client-side was RMB53.66 million ($8.73 million) in China online gaming market, representing the most market share. Revenue from mobile games was RMB11.24 million ($1.82 million) and it is estimated that its market share by revenue can be increased continuously in China.

There were 89 million players in mobile gaming market in 2012 while by the end of 2013, it exceeded 310 million with an increase of 248.5%. It is obvious that mobile gaming has been a hotspot in China.

Total number of mobile gaming users on smartphones reached 190 million in 2013 according to iResearch. It is estimated mobile gaming market share of China gaming market will continue the rapid growth in 2014.

Also read: Top Mobile Browsers in China

Rovio’s Angry Birds Stella is available for download through Alibaba’s mobile apps such as its  Taobao online shopping app, Laiwang chat app, and Alipay’s smartphone app, Alipay Wallet. 

China online users will also be able to download Angry Birds Stella game from Weibo games platform, UCWeb’s mobile game platform and the Youku Tudou app, all of which Alibaba Group owns stakes in.

The original Angry Birds game was once very popular in China but overtaken by other games such as Temple Run 2, according to iResearch’s latest ranking of the most popular Android games in China.

Rovio runs an online store on Tmall.com, selling Angry Birds merchandise while both parties will cooperate on expanding Rovio’s consumer merchandise line into Tmall’s beauty and cosmetic vertical in order to market effectively to women.

To coincide with the launch of Angry Birds Stella game, Tmall’s beauty vertical and Alibaba’s mobile game unit will launch an “Angry Birds Stella Nail Art” competition to attract female users to the game, said the press release.

Also read: Tencent’s Hot Mobile Game Had 20 Million Downloads In 3 Days

Total number of mobile gaming users on smartphones reached 190 million in 2013 according to iResearch.

Tencent announced on the 10th anniversary of QQ Game that the paid users had reached 35%. Tencent data showed that QQ Game platform includes more than 100 games, with 200 million active users. QQ Game platform had 8 million users online at the same time.

According to Enfodesk, 73% QQ Game users were male, far more than female users. And users whose age between 19-22 represent 22.9%, the largest user group. Young people between 19-30 represent more than half of total QQ Game users. High school students and university/college students were the main users of QQ Game.