Tencent proposes 1 into 5 share split to lower investment threshold in China

Tencent Holdings Limited announced Wednesday the company has proposed a 1 into 5 share split, which will be effective on May 15. Tencent said the share spilt aims to facilitate share ownership of small investors. The split would be effective from May 15, pending approval by current shareholders at Tencent's annual general meeting. "We hope to lower the investment threshold for investors," said Martin Lau, Tencent's president, at the press briefing. Pony Ma, chairman and CEO of Tencent, announced a total revenue of 60.437 billion RMB (9.913 billion U. S. dollars) ended Dec. 31, 2013, an increase of 38 percent over the previous year. Tencent's annual result showed the operating profit was 19.194 billion RMB, a rise of 24 percent over the previous year. Profit attributable to equity holders of the company for the year was 15. 502 billion RMB, an increase of 22 percent year on year. Basic earnings per share were 8.464 RMB, while diluted earnings per share were 8.298 RMB. Ma said during 2013, Tencent achieved sustained growth in revenue and earnings, while further embracing mobile internet and starting mobile monetization. "We migrated our flagship QQ service from a primarily PC to a primarily smart phone experience, and enhanced our market-leading Weixin/ WeChat app from a communications tool to a multi- functional platform through initiatives such as smart phone games, official accounts and Weixin Payment."Ma added. In 2014, Tencent intends to leverage their leading communications and social applicants, to support a broad portfolio of associated applications spanning activities such as games, entertainment, information and utilities. "We will continue investing heavily in certain long-term projects we deem strategic, including purchasing content and improving user experience for online video service, marketing and popularizing WeChat service in selected international markets like Southeast Asia,"Ma said.