Tencent’s Capex Pops in Quarterly Earnings

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Tencent reported second-quarter revenue of 204.8 billion yuan, driven by accelerated growth in its cloud operations and a substantial increase in research spending. Fintech and business services revenue rose 9 percent year over year to 603 billion yuan during the quarter. Research and development expenditures jumped 35 percent to 273 billion yuan, while capital expenditures surged 176 percent to 528 billion yuan as the company ramped up spending on computing power. The company highlighted progress across its artificial intelligence initiatives, starting with its Hunyuan Hy3 model. Following its deployment, Hy3 was integrated into products such as WorkBuddy and Yuanbao, driving…

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