Ma Huateng's "Dream of Island owners" is one step closer.

Recently, Shenzhen media reported that the future science and technology city of "Internet +", Tencent's global headquarters, is under construction. Tencent confirmed that the site under construction is the "Penguin Island" project. According to the information provided by the Baoan District Development and Reform Bureau, the project covers an area of 809000 hectares, with a total construction area of 2 million hectares, with a total planned investment of 37 billion yuan.

Radar Finance noticed that on November 29, 2019, Tencent won a piece of land in Dachan Bay, Xixiang Street, Baoan District, Shenzhen, for the construction of Shenzhen's "Internet +" future science and technology city. The project has a land area of 809000 square meters and a total construction area of 2 million square meters. The project is expected to eventually accommodate 8 to 100000 employees.

The construction cost of 37 billion yuan did not put too much financial pressure on Tencent. In 2020, Tencent has a total revenue of 482.064 billion yuan and a profit of 122.742 billion yuan, which can build 3.3 "penguin islands".

In addition to Tencent, in recent years, there are a number of Internet technology companies to buy land to build buildings.

Tencent spent 37 billion to build "Penguin Island"

It is reported that Tencent's "Penguin Island" project obtained construction permission last year, and a foundation laying ceremony was held in June this year. Construction of foundation pit support is under way, and large machinery such as pile drivers have entered the venue.

According to public information, "Penguin Island" is located at the mouth of the Pearl River and in the Dachan Bay Port area of Baoan District. The map shows that Dachan Bay is adjacent to Shenzhen Baoan International Airport, Baoan Central area and Qianhai Free Trade Zone, and is connected to the opened Yangtze River Expressway, Baoan Avenue, National Highway 107 and the future Shenzhong Corridor.

Prior to this, Tencent, a man with a large family, already had three sites in Nanshan District of Shenzhen City, namely: in February 2006, he acquired plot T304-0111 with a land area of 5999.85 hectares, the land function was industrial land, and Tencent Building was built; in April 2010, he acquired T204-0072 site with a land area of 18650.95 hectares, and the land function was industrial land, and Tencent Binhai Mansion had been built. In May 2015, we obtained plot T201-0081 with a land area of 24947.84 square meters. The land function is commercial office space. Tencent Qianhai Building is under construction.

Tencent won the site in Dachan Bay, Xixiang Street, Baoan District, Shenzhen, for 8.52 billion yuan on November 29th, 2019, to build Shenzhen's "Internet +" future science and technology city, a project known as "Penguin Island". It is reported that the construction of the project is divided into two phases, the first phase of the construction project is scheduled to be completed in December 2024, and the second phase of the construction project is scheduled to be completed in November 2026.

According to the "Shenzhen" Internet + "key Industry Project selection Scheme for the site selection of Future Science and Technology City" announced by the Industry and Information Technology Bureau of Baoan District in October 2019, according to the planning of the construction project, the total construction area is about 2 million square meters. Tencent has a total of about 38000 employees in Shenzhen in 2019, with an office area of about 700000 square meters, of which the self-owned property area is 330000 square meters and the leased area is 370000 square meters. According to the company's business development, the number of employees is forecast to grow by 13% per year, and the number of employees will reach about 89000 in the next seven years. According to the per capita estimate, the total demand for office space is 1.78 million tons. Minus the self-owned property Tencent Building, Binhai Mansion Building, and currently under construction of Qianhai Building 150000 yuan, the office space gap is 1.3 million yuan.

Tencent plans to introduce seven major industries, including effective advertising R & D base, Internet cloud global R & D base, Internet + medical base, Internet + educational innovation practice base, Internet sports industry interaction base, Internet + mass entrepreneurship and innovation base and cutting-edge science and technology research center, to form a "six bases and one platform".

Among them: effect advertising R & D base project 250000; Internet cloud global R & D base project 250000; international Internet + medical base project 240000; Internet + education innovation practice base project 240000; Internet sports industry interactive base project 220000; Internet + mass entrepreneurship and innovation base project 100000; frontier science and technology research center project 200000; other supporting facilities construction area 500000 ".

According to the Shenzhen Baoan District Development and Reform Bureau, the project covers an area of 809000 square meters and a total construction area of 2 million square meters. The project is expected to eventually accommodate 8 to 100000 employees. The project includes office areas, employee apartments, business units, public facilities, schools (nine-year primary and secondary schools and senior high schools) and a conference center.

According to the "Major Project Plan of Baoan District 2021" newly released by Shenzhen Baoan District Development and Reform Commission, the construction area of the "Internet +" future science and technology city project will continue to expand, with the newly announced floor area of 3 million square meters. Research and development rooms, dormitories, commercial hotels, other supporting facilities and equipment rooms will be built. As a result, Tencent's "Penguin Island" has a full 1 million square feet more floor space.

The Shenzhen government has also given full support to Tencent's project. According to reports, Shenzhen's planned subway line 15 will run through the Dachan Bay Peninsula. Once the subway is opened in the future, it will bring great convenience to transportation here. "Penguin Island" will also be more closely linked with Tencent Building, Tencent Binhai Mansion, and Tencent Qianhai Building through Line 15. The completion of the project in the future will attract and gather more middle and high-end professionals, produce good economic benefits, promote the sustained and stable economic and social development of Shenzhen and Baoan, and the relationship between Tencent and Shenzhen will become more inseparable.

Previously, MVRDV has come up with a design for Tencent's Dachan Bay project, which looks like a undulating mountain range. But in the end, the project was designed by the world-famous architectural design company NBBJ, which is also the re-cooperation between Tencent and the design company.

MVRDV Architectural Design firm Design Plan effect drawing

At that time, an Internet park with an area of 3 million square feet will be built here, which is equivalent to 8.5 Tencent Binhai Mansion. The settlement of Tencent's "Penguin Island" is bound to push the economic development of Dachan Bay to a higher level, just as Huawei drives the development of the Songshan Lake area.

02 Tencent's annual profit can create 3.3 "penguin islands"

Tencent built his own "Penguin Island". Is there plenty of money? According to the 2020 report released by Tencent, Tencent's total revenue in 2020 reached 482.064 billion yuan, an increase of 28 percent over 2019, and a profit of 122.742 billion yuan, up 30 percent from the same period last year. Of this total, the revenue from value-added services was 67 billion yuan, up 28% over the same period last year; the revenue from online advertising was 24.7 billion yuan, up 22% from the same period last year; and the revenue from financial technology and enterprise services was 38.5 billion yuan, up 29% from the same period last year. According to this calculation, Tencent's annual profit can build 3.3 enterprise islands.

In terms of communications and social communication, Wechat and WeChat combined monthly active user accounts reached 1.225 billion, an increase of 5.2% over the same period last year. The number of monthly active users of the QQ smart terminal reached 595 million; Wechat has more than 120 million users posting content on moments every day, 360 million users read official account articles, and 400 million users use Mini Program. Mini Program and WeChat Pay help small and medium-sized enterprises and brands strengthen their ties with users, and the transaction volume generated through Mini Program more than doubled in 2020 compared with the same period last year. The launch of "video number" allows brands and enterprises to expand their audience and promote transactions.

In terms of online games, in addition to "Arena of Valor" and "Game for Peace", Tencent also has a number of best-selling games, such as "Mobile Games across the Line of Fire", "call of Duty", "Tianya Mingyue knife hand Games" and other mobile games. Tencent's online game revenue reached 156.1 billion yuan in 2020. Arena of Valor has topped the global best-selling list of mobile games for two years in a row and continues to be the most popular mobile game in China (calculated by the number of monthly active users). "PUBG Mobile" has become the most popular mobile game in overseas markets for the second year in a row (calculated by the number of monthly active users). The "PUBG Mobile" global finals has become the most watched e-sports event in mobile games. "League of Legends" saw more than 45 million viewers at the same time in the 2020 global finals, setting a record for the game e-sports. Tencent also partnered with Nintendo to sell more than 1 million Switch hosts in China.

In the face of the online advertising business, revenue in 2020 increased by 20% year-on-year to 82.3 billion yuan, thanks to platform integration and algorithm upgrades, as well as increased demand from advertisers from industries such as education, Internet services and e-commerce platforms. Social and other advertising revenue increased 29% to 68 billion yuan, mainly driven by more advertising revenue brought by the increase in Wechat advertising inventory, and the mobile advertising alliance's revenue contribution from video advertising; media advertising revenue fell 8% to 14.3 billion yuan, Tencent video advertising revenue decreased, partly offset by the increase in advertising revenue of music streaming applications.

In terms of digital content, Tencent's paid value-added service accounts reached 219 million in 2020, an increase of 22% over the same period last year. The number of members of video payment service has reached 123 million, which is a leading position in the long video industry. Tencent continues to develop popular film and television animation IP to create attractive content to absorb paying users. The model of paid streaming media has brought about a continuous growth in the number of music service members. China Literature is committed to enriching free and paid content, community functions and IP-centric content ecology.

In terms of enterprise services, Tencent Conference has become the largest independent cloud conferencing application in China, currently serving more than 5.5 million enterprise customers, enabling them to achieve better internal communication and connect with more than 400m Wechat users.

03 Why do all big factories like to have "building dreams"?

It is worth mentioning that not only geese like to buy land, in recent years, Internet companies have bought land, are spending a lot of money to build their own buildings.

With its Douyin, Tik Tok, Jinri Toutiao, watermelon video and other products proud of the new expensive bytes of the Internet at home and abroad, it has also opened its own way of buying in recent years. According to media reports, in 2019, byte beat spent 9 billion yuan to buy Zhongkun Square in Beijing; in June 2020, byte beat spent 1.082 billion yuan to buy a plot of headquarters base in Houhai, Shenzhen, close to Tencent Shenzhen headquarters building. On November 2, 2020, Beijing Fangheng Fashion Center was officially opened as one of its office locations, which was purchased at a cost of 5 billion yuan. It is the first self-owned office building with byte jump.

In July 2019, Lei Jun said in his personal Weibo Corp, "Beijing drifters, after more than nine years of struggle, I finally bought a house!" "the house Lei Jun bought is the XIAOMI Science and Technology Park in Beijing. According to data, the XIAOMI Science and Technology Park is composed of eight buildings, covering an area of 348000 square feet, with a total cost of 5.2 billion, and can accommodate more than 16000 employees.

In November 2020, Meituan won a piece of land in Yangpu District of Shanghai for 6.541 billion yuan, with a transfer area of 52600 square feet. It is reported that Meituan will build a headquarters in Shanghai.

According to Kuaishou Technology's prospectus, on January 15, 2021, Kuaishou Technology entered into a framework agreement with Beijing Shounong Information Industry Investment Co., Ltd., agreeing to purchase a number of properties with a total floor area of about 114200 yuan through Beijing Kuaishou Technology. The total consideration is about 2.8 billion yuan, and the total rental of a number of properties and related parking spaces with a total floor area of about 119500 yuan is about 22.8 million yuan per month for the first three years. The property will be used mainly for office purposes, and Kuaishou Technology plans to pay the consideration with internal funds.

On January 22, 2021, Bilibili Inc. bought a piece of land in Dinghai Community, Yangpu District, Shanghai for 8.118 billion yuan, and a new headquarters building will be built here. This piece of land is located on the Yangpudong Bund, close to the Huangpu River, with a good line of sight and excellent terrain. It is reported that the above-ground floor area of the building is about 359000 square meters, of which the office building area is 289000 square feet, the commercial area is 34000 square meters, the cultural and sports area is 21000 square meters, the rental housing area is 15000 square meters, and the underground area is about 303600 square meters, of which the commercial area is 92000 square meters.

Interestingly, the land bought by Bilibili Inc. and the land bought by Meituan are close to each other, and the two companies will become neighbors in the future.

According to industry insiders, large companies buy property, on the one hand, because the existing office space can not meet the needs of workstations brought about by the growth of the number of employees, the demand for space for business expansion, and the functional requirements for building a perfect, comprehensive and high-standard service park.

On the other hand, for Internet technology enterprises, the land bought by huge amounts of money can be turned into their fixed assets. In the early years, many companies moved around with their employees for office space. Although buying land requires a large amount of cash at one time, it can save rent in the long run; the real estate bought by the company can be deducted against input tax to a certain extent; buying a house is still a kind of investment. For example, the land value bought by Sohu.com Ltd in his early years has already multiplied several times. At present, the land bought by Sohu.com Ltd is already one of its most valuable assets, which is also a classic model for buying property in the industry. In addition, in order to retain the major tax payers in various districts to drive the economic development of the region, local governments will also provide some preferential policies to attract large manufacturers to buy houses.