Beijing, China – Chinese tech giant Tencent suffered a 16 percent decline in annual net profit year on year in 2022, according to an earnings report released Wednesday.
The group, which owns the popular Chinese messaging app WeChat, made a profit of 188.2 billion yuan ($27.3 billion) in 2022, down from 224.8 billion yuan($32.66bn) the previous year.
The dip comes as China’s tech sector faces increasing scrutiny from authorities, who have ramped up oversight of the domestic industry in recent years.
Following years of meteoric growth that transformed the country into one of the most dynamic and interconnected global markets, its internet giants have faced increasing pressure from authorities since 2020.
Many of China’s leading tech firms — such as Tencent, Alibaba, Baidu and ByteDance — have been investigated for alleged anti-competitive behavior and data security issues, dampening investor enthusiasm.
