China WeChat fact of the day

by on January 6, 2017 at 3:00 am in Web/Tech | Permalink

WeChat’s ability to create a bustling payments economy echoes the general success of its parent company. In September, Tencent became China’s largest company by value, surpassing state-owned China Mobile, when it reported its third-quarter revenue: $6 billion, up 52% year over year. How much of that can be attributed to Wallet and WePay was not specified: WeChat, China’s most popular messaging app, makes money largely from online gaming, advertising, and selling sticker packs. But Tencent—which began with the instant messaging app QQ and is now pursuing artificial intelligence and electric cars alongside investments in a range of companies, including China’s dominant ride-sharing operation, Didi Chuxing—did cite WePay as a major reason for its “other” businesses’ growth, which increased $726 million in the third quarter, or 348% over the same period last year. According to estimates by HSBC, based on current tech company valuations, WeChat could already be worth more than $80 billion, about half of Tencent’s market capitalization.

That is from Eveline Chao at Fast Company, and for the pointer I thank Dan Wang.  The article offers other points of interest.

1 So Much For Subtlety January 6, 2017 at 4:55 am

In September, Tencent became China’s largest company by value, surpassing state-owned China Mobile, when it reported its third-quarter revenue: $6 billion, up 52% year over year.

I foresee a wave of arrests among the leading shareholders for tax evasion. No matter how supine Tencent is, the government cannot like that.

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2 Chuck January 6, 2017 at 8:46 am

Governments love internet companies. People gladly hand over personal data that governments would have to spend fortunes to collect on their own.

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3 Thiago Ribeiro January 6, 2017 at 9:02 am

The American regime has grown oppressive and decadent.

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4 Just Saying January 6, 2017 at 9:17 am

It’s like you have Tourette syndrome, you can’t help but act reflexively. Like a Pavlovian dog, you good boy…

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5 Thiago Ribeiro January 6, 2017 at 9:29 am

It is not my fault Americans, much like crocodiles, live in the Nile and keep crying.

6 Ray Lopez January 6, 2017 at 9:33 am

+1 @ TR, right on brother, right on! It’s so obvious to an outsider that AmeriKKKa has seen better days, but to Trump supporters I suppose TR seems like some sort of enemy.

BTW, regarding social media, I’ve programmed a social media app, had it in prototype form (I used C# web services and Linq-to-Sql for the back end, with MS SQL Server),then found out somebody has already done it, and worse, it was indirectly a client which ethically forbade me from doing the same thing (yes, Ray has ethics). It’s so easy to do social media apps. Which makes you realize TC and Peter Thiel are right about Great Stagnation.

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7 Thiago Ribeiro January 6, 2017 at 9:48 am

“’It’s so obvious to an outsider that AmeriKKKa has seen better days, but to Trump supporters I suppose TR seems like some sort of enemy.”

When I was young, America was a valuable ally or a fearful adversary. No leading from behing then, no talks about selling out Japan, Korea and Western Europe then. When I was young, Americans used to build things. The first computer I used was a Brazilian clone of, I think, Eastern European clone of an American computer. No Korean computers then. When I was a child, one of the schools (for very little children) near my home was called Lil’ Wolf’s A B C, Mr. Donald Duck was on TV all the time. Nowadays youngsters only talk about Trumps and Korean and Japanese cartoons. America’s soft power is gone. We used to read Asimov’s books and Perry Rodhan’s adventures (a German series, but the hero was American). In the old times, Americans knew how value Brazil. As Kissinger famously said, “wherever Brazil goes, Latin America will follow it”, now Americans try to encircle Brazil and embold the Paraguayan aggressor, the so-called Uruguayans rebells and the French.

8 JWatts January 6, 2017 at 9:51 am

“but to Trump supporters I suppose TR seems like some sort of enemy.”

First, I’m pretty sure many of TR’s harshest critics on this forum are definitely not Trump supporters. Secondly, nobody considers him an enemy. I think most people just consider him to be a kook.

9 4ChanMan January 6, 2017 at 9:55 am

Non-Trump supporters are better known as Cucks

10 Thiago Ribeiro January 6, 2017 at 10:00 am

Kooks are as kooks do. I cannot be a kook because I am on the right side of history. As an old Brazilian says, “the Future belongs to us, we are just beginning”.

11 Thiago Ribeiro January 6, 2017 at 10:16 am

* old Brazilian song

12 Ray Lopez January 6, 2017 at 10:46 am

But all is not rosy in Brazil… “The riot in the Amazon region comes five days after 56 inmates were slaughtered in Brazil’s worst prison massacre in more than two decades” – Slaughtered! not killed, but SLAUGHTERED! Ooh my…prisoners have rights too.

13 Jeff R January 6, 2017 at 11:36 am

I think I heard some of the inmates were beheaded; if true, I don’t think “slaughter” is an unreasonable description.

14 Thiago Ribeiro January 6, 2017 at 11:38 am

Prisoners slaughtered their fellow prisoners and taped their celebration. It was part of an ongoing gang war for the controlof the drug trafficking. The authorities, however, have already intervened, order has been re-established before a full-scle riot could happen and the situation is well under control. As the local governor pointed out, there were no saints there and the society lost little aside for the affair have been seized by those who want to denigrate Braziland its democrtic institutions. President Temer has already ordered new measures to be taken to prevent such things in the future. A strict investigation has already been launched. No stone will be left unturned.

15 DF January 6, 2017 at 9:14 am

Impressive but $6 seems paltry compared to the revenue of international competitors like Google ($74b), Amazon ($107), and Facebook ($18). Tencent + Baidu + Alibaba combined is about half of Google. This seems surprising given that China’s GDP is not a small fraction of America’s and the narrative being e-commerce is more popular and standardized in China than America.

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16 DF January 6, 2017 at 9:20 am

My apology $6b is just Q3 revenue. But my comment still stands. Tencent + Baidu + Alibaba is about $40b.

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17 JWatts January 6, 2017 at 9:26 am

You listed Facebook at $18B, but Tencent getting $6B a quarter is probably larger. Granted, the net profits could be wildly in Facebooks favor, I really don’t know. But in any case, the Chinese companies have become major players.

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18 tjamesjones January 6, 2017 at 9:36 am

@JWatts, FB’s sales for the last reported quarter (end of Sept 2016) was $US7.1 billion, as they are growing strongly Q by Q. They also reported 1.79 billion active monthly users. Not sure the Chinese tech companies are in that league.

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19 DF January 6, 2017 at 9:41 am

I’ve long been warned that the earnings of tech companies are meaningless given how they reinvest so I looked at revenues. Major players Chinese companies are but I had thought they were bigger before I read Tyler’s post. Tencent is the shining jewel of the Chinese non-hardward tech space, but even if we acknowledge its annual revenue is upward of $24b, the average of Google, Amazon, and Facebook (the US companies it’s most often compared to), it’s nearly 3 times smaller! Even controlling for China’s smaller consumer economy, that’s a shocker to me.

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20 JWatts January 6, 2017 at 9:54 am

“it’s nearly 3 times smaller! Even controlling for China’s smaller consumer economy, that’s a shocker to me.”

I guess that’s a different point of view. I knew they were smaller. So, when you tell me they are 3 times smaller than, “Google, Amazon, and Facebook ” and growing rapidly, I just assume they are 5-8 years behind on the growth track.

21 Thiago Ribeiro January 6, 2017 at 9:52 am

Yet, the Chinese regime will soon collapse under the weight of its own internal contradictions.

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22 chuck martel January 6, 2017 at 10:02 am

” the Chinese companies have become major players.”

Major players where? Sure, they’re major players in China, somebody has to be the major player in the Celestial Empire. But they’re not major players in the US or Europe or Australia or Latin America. Maybe there’s a big chain of barber shops in China, thousands of Chinese barbers, they wouldn’t be a major player internationally because they cut most of the hair in China.

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23 tjamesjones January 6, 2017 at 9:30 am

perhaps there is a big future in selling Sticker Packs.

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24 Bob January 6, 2017 at 11:39 pm

If anything, it’s huge instead. While China’s GDP a good percentage of the US’s gdp, we also have to consider where the GDP comes from. CA company like Tencent is not playing in the international market very much: It scales with China’s internal consumer market alone. Consider WePay to be a Paypal or Stripe competitor. PayPal’s Q4 is not in the books yet, but a very optimistic estimate would be just 3b. So for WePay to be bigger than tencent already, they’d have to be 1/3 of Tencent’s revenue… and Paypal is an international company. While WePay is probably smaller than a third of tencent, They are still incredibly large, all things considered.

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25 derek ch January 6, 2017 at 10:11 am

If they had a Democrat majority Congress and Senate none of this shit would happen. Think of the children!

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26 4ChanMan January 6, 2017 at 11:37 am

Cuck!

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27 Viking January 6, 2017 at 1:32 pm

Just a few days ago, I was buying something at a 7-eleven store near a Beijing university campus. I was the only person paying with cash, the others were using weChat pay, presenting a 2d bar code (QR code?) to the store clerk for scanning. The commies are ahead in some areas. But why did they vote against Israel recently? Israel is acused of confiscation of private property following a 1967 war. China confiscated much more private property following a war that concluded in 1950. Since PRC voted in UN security council that Israel shall give back the land it confiscated in 1967, will PRC give back the land it confiscated in 1950?

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28 chuck martel January 6, 2017 at 1:47 pm

The USA doesn’t seem to be in any hurry to return the land confiscated between 1492 and 2017.

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29 Viking January 6, 2017 at 4:27 pm

The US vote (abstain) was at least halfway consistent with their actions since the fifteen hundreds. The other security council members were wholly hypocritical, not just halfway.

https://en.m.wikipedia.org/wiki/United_Nations_Security_Council_Resolution_2334

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