A repurchase announcement, let a lot of Tencent investors worried.

December 1, Tencent announcement, repurchased 36,300 shares of the company's shares, a total of about 10,606,700 Hong Kong dollars. It is worth noting that this year, Tencent's single-day repurchase is almost normalized more than 200 million Hong Kong dollars, Tencent's repurchase initiative was once jokingly referred to as "Teng three hundred million", and this single-day repurchase amount reduced to only ten million level, so that the market surprised.

Many investors worried, "Tencent does not have money to buy back?" "Does it mean that the company identified valuation is about 300 Hong Kong dollars?" For a time, the market is talking.

According to the brokerage China reporter, Tencent repurchase sudden shrinkage is not because of capital reasons, or with the Hong Kong stock repurchase rule restrictions, due to the repurchase price can not be higher than 5% of the average price of the past five trading days, and recently Tencent shares rebounded more, so not many shares to meet the repurchase price.

Sure enough, December 2 after the plate, "Tencent 300 million" is back. Tencent Holdings announced that on December 2, the company repurchased 1.19 million shares, the repurchase price of 291.8-296 Hong Kong dollars,*** cost about 351 million Hong Kong dollars, this year has repurchased 72.6 million shares of stock.

"Teng three hundred million" down to "Teng ten million"?

Tencent's buyback announcement on December 1, triggered investor concern, because the amount of repurchase compared to previous days has been significantly "shrunk".

The announcement disclosed that on December 1, Tencent repurchased 36,200 shares of the company's shares, with a repurchase price of HK$292.6-293.2 per share, costing a total of HK$10.6067 million.

Review of the past, Tencent in November 16th release of the third quarterly report after a sensitive period, quickly resumed the repurchase action:

November 18th, each share of 286.6 - 292.6 Hong Kong dollars, at a cost of 352 million Hong Kong dollars, repurchase 1.21 million shares;

November 21st, each share of 274.6 - 286.6 at a cost of HK$351 million to buy back 1.24 million shares;

Nov. 22, HK$274.8-284.4 per share at a cost of HK$351 million to buy back 1.26 million shares;

Nov. 23, HK$277.8-284.8 per share at a cost of HK$352 million to buy back 1.25 million shares;

On Nov. 24, it repurchased 1.24 million shares at HK$279-289.2 per share at a cost of HK$350 million;

On Nov. 25, it repurchased 1.29 million shares at HK$251 million at HK$268.4-277 per share;

On Nov. 28, it repurchased 1.31 million shares at HK$259-271.4 per share;

On Nov. 28, it repurchased 1.31 million shares at a cost of HK$350 million;<

November 29, HK$273.8-285.8 per share, costing HK$350 million to buy back 1.25 million shares;

November 30, HK$280.2-292 per share, costing HK$279 million to buy back 982,800 shares;

December 1, HK$292.6-293.2 per share, costing HK$10,606,700 to repurchase 36,200 shares.

So, from the December 1 day Tencent repurchase, compared with the usual, both the amount and the number of repurchases are not a quantum leap. A time to trigger the market hot, worry.

Close to Tencent related sources revealed that Tencent repurchase number and amount of sudden shrinkage, mainly due to the Hong Kong Stock Exchange repurchase related compliance reasons.

A relevant market source said, tencent repurchase amount fell sharply, may HKEx stock repurchase rules, the HKEx in order to prevent the issuer in the secondary market traders compete for profits, the provisions of the "repurchase price can not be higher than the average price of the past five trading days 5%", and if the stock rises faster The increase in the number of shares may result in fewer shares being available to fulfill the buyback requirement, thus reducing the overall size of the buyback.

December 1, tencent holdings closed at 294.4 hkd/share, which means that tencent stock price from october 28 almost 200 hkd/share price, continued to rebound 47.2%, the last 5 trading day average price of 279.28 hkd/share, slightly higher than 5% of the price reached 293.24 hkd/share, the repurchase of stock price range Located at HK$292.6 - HK$293.2, that is, the number of shares that can meet the repurchase is limited, which led to Tencent's single-day repurchase amount fell sharply.

Sure enough, December 2 after the plate, "Tencent 300 million" is back. Tencent Holdings announced that on December 2, the company repurchased 1.19 million shares, the repurchase price of 291.8-296 Hong Kong dollars, *** spent about 351 million Hong Kong dollars, this year has repurchased 72.6 million shares.

This year has repurchased 30 billion Hong Kong dollars

In fact, in order to boost confidence, Tencent so far this year has carried out far more than in previous years buyback action.

Just since mid-November, Tencent repurchase amounted to a total of 3.097 billion Hong Kong dollars, and in the Tencent three-quarter report disclosure, as of October 14, Tencent on a total of 76 repurchase, repurchase the amount of 24.5 billion Hong Kong dollars, a comprehensive point of view, Tencent this year repurchase 87 times, the amount of repurchase of about 30 billion Hong Kong dollars.

Guo Hai Securities analysis that Tencent buyback program is an effective way to give back to shareholders and boost market confidence.

In mid-November, Tencent released its third-quarter report, showing that third-quarter 2022 revenue of 140.93 billion yuan, down 2% year-on-year, the decline narrowed; net profit (Non-IFRS) 32.254 billion yuan, an increase of 2% year-on-year, bid farewell to the downtrend for four consecutive quarters, back to the positive growth track.

Including the financial technology and enterprise services segment revenue of 44.8 billion yuan in the third quarter, an increase of 4% year-on-year, and again exceeded the online games segment, becoming the largest revenue contributor business segment.

Tencent, which started out as a social networking company, had 1.309 billion combined monthly active accounts for WeChat and WeChat by the end of the third quarter, up 3.7 percent year-on-year, while QQ's monthly active accounts for mobile terminals reached 574 million, up 0.1 percent year-on-year.

Tencent announced at the same time as its earnings report that it will hold about 958 million shares of Meituan stock as dividends to shareholders. According to the closing price of Meituan on Nov. 15, the dividend payout will amount to about 160 billion Hong Kong dollars, which is known in the industry as "dividend-style reduction.

November 30, 2022 Tencent Global Digital Ecology Conference held in Shenzhen. Tencent Group Senior Executive Vice President, Tencent Cloud and Intelligent Industry Business Group CEO Tang Daosheng said in the speech session, digitization is a magnificent change, is to escort the physical industry "through the wind and waves" of the important assistant. Digitalization of industry connects upstream and downstream to achieve lean manufacturing and precise marketing through data measurement and process optimization, and responds to market changes and captures new opportunities through efficient collaboration. The company is committed to both the local market and exploring overseas opportunities, realizing a dual cycle of domestic and international growth.

Tong Daosheng said that Tencent itself has also realized cost reduction and efficiency through digital technology. In three years, Tencent's own business all moved to run on the Tencent cloud. Through more flexible resource scheduling and more agile response to changes in supply and demand, IT costs alone have saved the company 3 billion yuan a year. This also reinforces Tencent's investment in the industrial Internet.

Tong Daosheng said that in the future, Tencent will make efforts to shape the benchmark in three aspects. The first is to shape the product benchmark, to create a digital enterprise "toolbox"; the second is to shape the technology benchmark, to build the number of real integration "hard support"; the third is to shape the ecological benchmark, to invite ecological partners "singing the main character The third is to shape the ecological benchmark, invite ecological partners to "play a leading role", *** create industry *** win "big space".

Which, in the field of technology benchmarking, Tang Daosheng specifically mentioned the chip, he said, Tencent not only promote self-developed chip for Tencent cloud services to reduce costs and increase efficiency, but also cloud computing, to help the construction of the domestic chip industry chain, through the arithmetic, big data, AI, etc., to accelerate the process of the chip from the design to the market. For example, the concept and tools of DevOps based on cloud research and development processes help the rapid iteration of chip research and development.