Forget the massively popular Facebook. In China, it’s all about Qzone and QQ and a host of other internet and mobile value added services that’s caught the attention of China’s Internet users.

goodbye and Julian MA your general manager of corporate strategy with ten cent in China you're an internet portal you've got sites that similar to say eBay functions like PayPal and so on only something like two percent of market share in terms of search engine yes who would you say are your main competitors then basically what we operate is is that we have a so called platform strategy so we have multiple major platforms they're like QQ which is instant messaging services QQ mail queue calm cool zone which is the social network services and then we have e-commerce services and yes you just pick up the web's we have the search services and we believe that by combining all of them together and then we can provide a so-called one-stop online life experiences for our users you're generating pretty significant revenues yes already I mean something like two building room and being a quarter I think what else for your last your last quarter yes it's more than that no sure the nobody's born in there most of that is coming from online gaming around half of our revenue today comes from online gaming about 10% comes from the advertisements the other 40% comes from what we call as mobile various services and internet various services by which user pay roughly 10 RMB per month to get a VIP type of services they pay basically flat rate among them and there is a little bit virtual items but most of them pay by a flat rate like 10 B 10 army a month what's your prediction and projection as to how what the elements are going to be going forward if you look at the market basically mobile will grow continue to grow very fast we've seen that in particular the six months is we see the highest growth in terms of the Internet users comes from comes from mobile this is industry figure not our own in-house figure and secondly we see a lots of life related vertical services there are also quite promising and grow very fast for example the damping or like this kind of Yelp the up type of services as you can see in China people can review the restaurant review a place go there get discounts online book reading various verticals for example online real estate car classify the information all kinds of this kind of what we call as lifestyle related services this is the other area we see well got very fast the third area is ecommerce of course over the past few years we see c2c grew very fast these days p2c pick up the speeds grow even faster but of course from a much smaller base why is it that companies like Google have struggled we see that Internet related services are the Internet services or online online media online contents it's a very local services so you need to understand the local market very very well that needs first of all the investment of resources and second you need a core team who knows the local market very very well and you have a very fast and localizing and a very agile local decision process in that area as of today we see probably major Chinese companies has a little bit advantage than the foreign companies I see that's probably the major reasons that we don't see many many major players major foreign players are very successful in China it may change because as the foreign companies has been have more and more like focus on the China market they spent more resources out there and then combined with their technologies and innovative models then I think the chances is fair to everybody we have to just walk on it Tencent is making strategic investments we've bought the Moscow based internet investment company Digital Sky yes this guy technologies for 300 million u.s. dollars it's this with a view to expanding outside China in the near future and today of course the primary source of the growth welcome to China and this kind of growth opportunity will continue to be very robust but looking at a very long term then we better have a more balanced for the folio so I think it's no surprising their company like us or like a contract by Alibaba and perfect wall they all started to what do we what I would categorize as establish a international footprints to seize the opportunity for the future when you were talking about your long-term strategy yes it almost suggests that you you almost see a time when the the China internet market will be saturated that takes time still some time off if you look at the internet penetration nowadays right it's only a 30 31 percent today we we serve and we compete for a market with around 420 billion Internet users active Internet users in the future we want to come we want to serve and compete for a market of for eight hundred and forty million users that market alone is it's big enough is very big so it takes time for the market grow to that stage and also it will be a tremendous efforts for anyone in this market to really I would say absorb and realize the commercial opportunities behind what role does mobile play in your in your strategy mobile you say very critical elements for us it's also very critical elements for most of the scene even significant players in China market and you can even see a lot more startup startup companies just focusing on the mobile areas a number of reasons behind first there is a fast increase of the very affordable smartphones which makes the online mobile online experience much much more interesting and second if you look at the profile of the Chinese Internet users many of them actually do not have a place for for PC or have a permanent place to access the PC for example many migrant workers students but they get a mobile phone so they can use that anytime which comes with a lot of challenges in China for doing a proper mobile internet service at all the number of models mobile phone models in China is probably many many many many more times than the than the number of models you are see in US and in Europe that create lots of complexity and lots of detailed works to make sure that your services were adopted to each of the models so say in the next five to ten years will the market have changed significantly the rate of growth may may gradually slow down but still at a very high number but the the size of a mark in terms of the money order the revenue may grow even faster because there there are lots of lots of opportunities that can be go deeper to take it out for example ecommerce it's just the beginning right all kinds of mobile related services nowadays there's just many of them are just use experiences I wouldn't be surprised that many many of them will become kind of like a part of a solid revenue potential the the other interesting area is the enabling of the traditional industries by the internet we just see this is just a very beginning ray in China in retail in many many related areas even in the manufacturing if those transitional industries are internet enabled their world generates a lot of lots of upsides and lots of lots of new growth opportunities for the Internet in terms of the real money Julie Marv Tencent thanks for joining us

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