Tencent Holdings (00700.HK) announced that in the second quarter of 2026, the Group recorded negative free cash flow of RMB13.8 billion. This was due to net cash generated from operating activities of RMB52.7 billion, which was over-offset by capital

2026-08-12

Tencent Holdings (00700.HK) announced that in the second quarter of 2026, the Group recorded negative free cash flow of RMB13.8 billion. This was due to net cash generated from operating activities of RMB52.7 billion, which was over-offset by capital expenditure payments of RMB59.3 billion, media content payments of RMB5 billion, and lease liability payments of RMB2.2 billion. Our operating cash flow includes substantial AI-related prepayments used to provide infrastructure to support Hy model upgrades, WorkBuddy and CodeBuddy inference needs, WeChat AI initiatives, and the development of AI capabilities for our various products and services, while also meeting the continued growth in demand for our cloud services from external customers. Excluding prepayments for computing power procurement, our free cash flow was RMB37.6 billion.