Tencent Holdings reported second-quarter revenue of CNY184.5 billion (USD25.7 billion), an increase of 15 percent from a year earlier, while net profit rose 17 percent to CNY55.6 billion. The Shenzhen-based company said resilient demand for its domestic and international video games and a rebound in advertising—both enhanced by generative-AI tools—underpinned the gains. Its majority-owned streaming subsidiary, Tencent Music Entertainment Group, also beat expectations. Second-quarter revenue grew 17.9 percent to CNY8.44 billion (USD1.18 billion), led by a 26 percent jump in online music services to CNY6.85 billion. Net profit widened to roughly CNY2.4-2.6 billion, up about one-third year on year. Paying subscribers increased 6.3 percent to 124.4 million, and average revenue per paying user climbed 9 percent to CNY11.7, helped by the company’s higher-priced SVIP tier. Investors welcomed the twin beats. Tencent Music shares surged about 15 percent in Hong Kong trading and its New York-listed stock advanced 12 percent overnight. Tencent Holdings’ U.S.-traded shares gained roughly 5 percent in pre-market dealings, positioning the Hong Kong stock to trade above HK$600 for the first time in four years if the momentum holds. Management signalled that, despite the earnings boost from artificial-intelligence applications in content recommendation and ad targeting, overall AI investment would remain “cautious.” The group said it will keep focusing on premium subscriptions, long-form audio and K-pop partnerships at Tencent Music, while leveraging generative AI to sustain growth in gaming, advertising and cloud services across the parent company.