A buyback announcement worried many Tencent investors.

On December 1, Tencent announced that he had bought back 36300 shares of the company, at a total cost of about HK $10.6067 million. It is worth noting that since the beginning of this year, Tencent's one-day repurchase is almost normal of more than HK $200 million. Tencent's repurchase measure was once jokingly called "Teng 300 million" by the outside world, but this one-day repurchase amount has been reduced to only 10 million. Surprised the market.

Many investors are worried, "does Tencent have no money to buy back?" "" does it mean that the company's valuation is about HK $300? "for a moment, the market talked one after another.

According to the Chinese reporter of the brokerage, Tencent's repurchase suddenly shrank not because of capital reasons, or related to the restrictions of Hong Kong stock repurchase rules. Because the repurchase price cannot be higher than 5% of the average price of the past five trading days, Tencent's share price has rebounded greatly recently, so the number of stocks that meet the repurchase price is small.

Sure enough, after the set on December 2, "Teng 300 million" came back. Tencent announced that the company bought back 1.19 million shares at a price of HK $291.8-HK $296 on December 2, at a total cost of about HK $351 million, and has bought back 72.6 million shares so far this year.

Will "Teng 300 million" be reduced to "Teng 10 million"?

Tencent's buyback announcement on December 1 attracted the attention of investors because the amount of buybacks was significantly "shrunk" compared with the past.

Tencent bought back 36200 shares of the company at a repurchase price of HK $292.6-HK $293.2 each, at a total cost of HK $10.6067 million, according to the announcement.

In retrospect, Tencent quickly resumed the buyback after the sensitive period when he released his three-quarter report on November 16:

Therefore, from the point of view of Tencent's buyback on December 1st, compared with the usual, both the amount and the number of buybacks are not of the same order of magnitude. All of a sudden, it caused heated discussion and concern in the market.

A person close to Tencent revealed thatThe sudden decline in the number and amount of Tencent's buybacks is mainly due to HKEx's compliance with buybacks.

Some people in the relevant market saidThe sharp decline in the amount of Tencent's repurchase may be related to the stock repurchase rules of the HKEx. In order to prevent issuers from competing with traders in the secondary market for profits, the HKEx stipulates that "the repurchase price should not be higher than 5 per cent of the average price of the past five trading days". And if the stock rises rapidly, it may lead to a reduction in the number of shares that can meet the number of buybacks, resulting in a reduction in the overall size of repurchases.

On December 1st, Tencent closed at HK $294.4 per share, which means that Tencent's share price has continued to rebound by 47.2% from the price of almost HK $200 per share on October 28th, with an average price of HK $279.28 per share in the last five trading days. the price slightly higher than 5 per cent reached HK $293.24 per share. The share buyback price range is between HK $292.6 and HK $293.2, that is, the number of shares that can be bought back is limited. This has led to a sharp drop in the amount of daily buybacks by Tencent.

Sure enough, after the set on December 2, "Teng 300 million" came back. Tencent announced that the company bought back 1.19 million shares at a price of HK $291.8-HK $296 on December 2, at a total cost of about HK $351 million, and has bought back 72.6 million shares so far this year.

HK $30 billion has been repurchased this year.

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

Since mid-November, Tencent's total repurchase amount has reached 3.097 billion Hong Kong dollars, while before the disclosure of Tencent's three quarterly reports, Tencent had made a total of 76 repurchases as of October 14, with a total repurchase cost of 24.5 billion Hong Kong dollars. Tencent bought 87 times this year, with a repurchase amount of about 30 billion Hong Kong dollars.

Guohai Securities analysts believe that Tencent's buyback plan is an effective way to give back to shareholders and boost market confidence.

In mid-November, Tencent released a three-quarter report showing that revenue in the third quarter of 2022 was 140.093 billion yuan, down 2% from the same period last year, while net profit (Non-IFRS) was 32.254 billion yuan, up 2% from the same period last year, leaving the downward trend for four consecutive quarters and returning to a positive growth track.

Among them, the revenue of the financial technology and enterprise services sector in the third quarter was 44.8 billion yuan, an increase of 4% over the same period last year, surpassing the online game sector to become the business sector with the largest contribution to revenue.

Tencent, a social starter, saw the combined number of monthly active user accounts of Wechat and WeChat reach 1.309 billion by the end of the third quarter, up 3.7 per cent from a year earlier. The number of monthly active users on mobile terminals reached 574 million, up 0.1 per cent from a year earlier.

While reporting the results, Tencent announced that he would pay a dividend of about 958 million shares of Meituan to shareholders as a dividend. According to Meituan's closing price on November 15, the dividend will reach about HK $160 billion, which is what the industry calls "dividend reduction".

On November 30th, 2022 Tencent Global Digital Ecology Conference was held in Shenzhen. Tang Daosheng, senior executive vice president of Tencent Group and CEO of Tencent Cloud and intelligent industry group, said in the speech that digitization is a magnificent change and an important assistant to escort the physical industry "through the storm." Industry digitization realizes lean manufacturing and precision marketing by connecting upstream and downstream, realizing lean manufacturing and precision marketing with data measurement and process optimization, and capturing new opportunities through efficient cooperation to respond to market changes. It not only ploughs the local market, but also explores overseas opportunities to realize the domestic and international double cycle.

Tang Daosheng said that Tencent himself has also achieved cost reduction and efficiency efficiency through digital technology. In three years, Tencent moved all his business to Tencent Cloud. Through more flexible resource scheduling and more agile response to changes in supply and demand, IT costs alone will save the company 3 billion yuan a year. This also strengthened Tencent's investment in the industrial Internet.

Tang Daosheng said that in the future, Tencent will make efforts to shape the benchmark from three aspects. The first is to shape the product benchmarking and create the enterprise digital "toolbox"; the second is to shape the technical benchmarking and build the "hard support" of the integration of numbers and facts; the third is to shape the ecological benchmarking, ask the ecological partners to "play the leading role" and create a win-win "big space" for the industry.

Among them, in the field of technology benchmarking, Tang Daosheng specifically mentioned chips. He said that Tencent not only promotes self-research chips to reduce costs and increase efficiency for Tencent Cloud services, but also uses cloud computing to help build a domestic chip industry chain, accelerating the process of chips from design to listing through computing, big data, AI and so on. For example, based on the concepts and tools of cloud R & D process DevOps, it helps the rapid iteration of chip research and development.