The 37 billion construction cost did not cause too much financial pressure on Tencent. In 2020, Tencent's total revenue will reach 482.064 billion yuan, with a profit of 122.742 billion yuan, and it can build 3.3 "Penguin Islands."
Radar Finance and Economics article | Meng Shuai edited | Deep Sea
Ma Huateng's "Dream of the Island Lord" is one step closer.
Recently, Shenzhen media reported that Tencent's global headquarters-the "Internet +" Future Technology City is under construction. Tencent confirmed that the land that has already started is the "Penguin Island" project. According to the information provided by the Bao'an District Development and Reform Bureau, the project covers an area of 809,000 square meters, with a total construction area of 2 million square meters, and a planned total investment of 37 billion yuan.
Radar Finance noted that previously, on November 29, 2019, Tencent bid 8.52 billion yuan for a plot located in Dachan Bay, Xixiang Street, Baoan District, Shenzhen, to build Shenzhen's "Internet +" future science and technology city. The project has a land area of 809,000 square meters and a total construction area of 2 million square meters. The project is expected to eventually accommodate 80,000 to 100,000 employees.
The cost of 37 billion yuan did not cause too much financial pressure on Tencent. In 2020, Tencent's total revenue will reach 482.064 billion yuan, with a profit of 122.742 billion yuan, and it can build 3.3 "Penguin Islands."
In addition to Tencent, in recent years, many Internet technology companies have bought land and built buildings.
Tencent spent 37 billion to build "Penguin Island"
It is reported that Tencent’s “Penguin Island” project obtained construction permits last year. A foundation laying ceremony was held in June this year. The foundation pit support is currently under construction, and large machinery such as pile drivers have already entered the site.
According to public information, "Penguin Island" is located at the estuary of the Pearl River, in the Dachan Bay Port Area, Bao'an District. The map shows that Da Chan Bay is adjacent to Shenzhen Bao’an International Airport, Bao’an Central District, and Qianhai Free Trade Zone, and is connected to the opened Yangtze River Expressway, Bao’an Avenue, 107 National Road and the future Shenzhen-Medium Corridor.
Prior to this, Tencent, a large-scale enterprise, had 3 plots of land in Nanshan District, Shenzhen. They were: acquired the T304-0111 plot in February 2006, with a land area of 5,999.85 square meters, and the land function is industrial land, and Tencent Building has been built; In April 2010, it acquired the T204-0072 plot, with a land area of 18650.95 square meters, and the land function is industrial land, and Tencent Binhai Building has been built; in May 2015, it acquired the T201-0081 plot with a land area of 24947.84 square meters, and the land function is commercial office The site is under construction of Tencent Qianhai Building.
On November 29, 2019, Tencent bid 8.52 billion yuan for this land located in Dachan Bay, Xixiang Street, Bao'an District, Shenzhen, to build Shenzhen’s “Internet +” future science and technology city. The project was called “Penguin” by the outside world. island". It is reported that this project was completed in two phases. The first phase of the construction project is scheduled to be completed in December 2024; the second phase of the construction project is scheduled to be completed in November 2026.
According to the "Shenzhen "Internet +" Future Science and Technology City Site Selection Plan for Key Industry Projects" announced by the Baoan District Industry and Information Technology Bureau in October 2019, according to the planning of the construction project, the total construction area is about 2 million square meters. In 2019, Tencent had approximately 38,000 employees in Shenzhen, with an office area of approximately 700,000 square meters, including 330,000 square meters of self-owned properties and 370,000 square meters of leased area. According to the company’s business development, the number of employees is predicted to increase by 13% per year. The number of employees will reach about 89,000 in the next 7 years. Calculated on a per capita basis of 20 square meters, the total demand for office space is 1.78 million square meters, minus the self-owned properties Tencent Building and Binhai Building. 330,000 square meters and 150,000 square meters of Qianhai Building currently under construction, with an office area gap of 1.3 million square meters.
Tencent plans to introduce 7 major industries in this project, including a research and development and promotion base for effective advertising, an Internet cloud global R&D base, an Internet + medical base, an Internet + education innovation practice base, an Internet sports industry interactive base, an Internet + innovation base, and a research center in the field of cutting-edge technology. , Forming "six bases and one platform".
Among them: 250,000 square meters of effective advertising research and promotion base project; 250,000 square meters of Internet cloud global research and development base project; 240,000 square meters of international Internet + medical base project; 240,000 square meters of Internet + education innovation practice base project; Internet sports industry interactive base project 22 10,000 square meters; Internet + double innovation base project 100,000 square meters; Frontier science and technology field research center project 200,000 square meters; other supporting facilities construction area of 500,000 square meters.
According to data from the Development and Reform Bureau of Bao'an District, Shenzhen, the project has a land area of 809,000 square meters and a total construction area of 2 million square meters. The project is expected to eventually accommodate 80 to 100,000 employees. The project includes office areas, employee apartments, and commercial units. , Public facilities, schools (9-year consistent elementary and middle schools and high schools) and conference centers.
According to the latest "Bao'an District 2021 Major Project Plan" released by the Shenzhen Baoan District Development and Reform Commission, the construction area of the "Internet +" future science and technology city project will continue to be expanded. The newly announced construction area will reach 3 million square meters, and R&D houses will be built. , Dormitories, commercial hotels, other supporting facilities and equipment rooms. As a result, Tencent’s "Penguin Island" has an additional building area of 1 million square meters.
For Tencent’s project, the Shenzhen government has also given full support. According to reports, Shenzhen’s planned subway line 15 will run through the Dachan Bay Peninsula in the future. Once the subway is opened to traffic in the future, it will bring great impact to the transportation here. The convenience of “Penguin Island” will also be closer to Tencent Building, Tencent Binhai Building, and Tencent Qianhai Building through Line 15. The completion of the project in the future will attract and gather more mid-to-high-end professionals, generate good economic benefits, and promote the sustained and stable economic and social development of Shenzhen and Baoan. The relationship between Tencent and Shenzhen will also become more encrypted and inseparable.
Previously, MVRDV had developed a design plan for Tencent's Da Chan Bay project, which looked like a rolling mountain range as a whole. But in the end, it was the world-renowned architectural design company NBBJ that undertook the project design. This is also another collaboration between Tencent and the design company.
MVRDV architectural design office design plan renderings
By then, an Internet park with an area of 3 million square meters will be built here, which is equivalent to 8.5 Tencent Binhai Buildings. The settlement of Tencent’s "Penguin Island" is bound to drive the development of the Songshan Lake area like Huawei, and help the economic development of Dachan Bay to a higher level.
Tencent can make 3.3 "Penguin Island" in one year's profit
Tencent built its own "Penguin Island", is it ample money? According to Tencent’s 2020 annual report, Tencent’s total revenue in 2020 reached 482.064 billion yuan, a year-on-year increase of 28% compared with 2019; profit was 122.742 billion yuan, a year-on-year increase of 30%. Among them, revenue from value-added services business was 67 billion yuan, a year-on-year increase of 28%; revenue from online advertising business was 24.7 billion yuan, a year-on-year increase of 22%; financial technology and corporate services revenue was 38.5 billion yuan, a year-on-year increase of 29%. Based on this calculation, Tencent's annual profit can create 3.3 corporate islands.
In terms of communications and social networking, the number of combined monthly active accounts of WeChat and WeChat reached 1.225 billion, an increase of 5.2% year-on-year, and the number of monthly active accounts of QQ smart terminals reached 595 million; more than 120 million WeChat users publish content in Moments every day, and 360 million users read the public No. 4, 400 million users use small programs. Mini programs and WeChat Pay help small and medium-sized enterprises and brands to strengthen their connections with users. In 2020, the volume of transactions generated through mini programs has more than doubled year-on-year. The launch of the "video number" allows brands and companies to expand their audiences and facilitate transactions.
In terms of online games, in addition to the "Honor of Kings" and "Peace Elite", Tencent also owns a number of best-selling games, such as "Cross Fire Mobile Game", "Call of Duty Mobile Game", "Tianya Mingyue Knife Mobile Game" 》And other mobile games. In 2020, Tencent's online game revenue will reach 156.1 billion yuan. "Honor of Kings" has topped the global mobile game bestseller list for two consecutive years, and continues to be the most popular mobile game in China (calculated by the number of monthly active accounts). "PUBG Mobile" has become the most popular mobile game in overseas markets for two consecutive years (calculated by the number of monthly active accounts). "PUBG Mobile" global finals has become the most watched e-sports event in mobile games. The maximum number of simultaneous viewers of the "League of Legends" 2020 global finals exceeds 45 million, setting a record for the viewing of gaming esports events. Tencent has also cooperated with Nintendo to sell more than 1 million Switch consoles in China.
The online advertising business is in front of it. Revenue in 2020 will increase by 20% year-on-year to 82.3 billion yuan, benefiting from platform integration and algorithm upgrades, as well as increased demand from advertisers from industries such as education, Internet services, and e-commerce platforms. Social and other advertising revenue increased by 29% to 68 billion yuan, mainly driven by the increase in WeChat advertising inventory, which brought more advertising revenue, and the mobile advertising alliance’s revenue contribution from video-based advertising; media advertising revenue declined8 % To RMB 14.3 billion, the decline in Tencent Video’s advertising revenue was partially offset by the increase in advertising revenue from music streaming apps.
In terms of digital content, Tencent’s number of paid value-added service accounts reached 219 million in 2020, a year-on-year increase of 22%. The number of paid video service members reached 123 million, which is a leading position in the long-term video industry. Tencent continues to develop popular film and television animation IP, creating attractive content to attract paying users. The paid streaming media model has brought about a continuous increase in the number of music service members. Through reading articles, we are committed to enriching free and paid content, community functions, and IP-centric content ecology.
In terms of corporate services, Tencent Meetings has become the largest independent cloud meeting application in China. It currently serves more than 5.5 million corporate customers, enabling them to achieve better internal communication and connect with more than 400 million WeChat users.
Why do Dachang love to have "building dreams"?
It is worth mentioning that not only geese like to buy land. In recent years, major Internet companies have bought land and are spending huge sums of money to build their own buildings.
With its Douyin, Tik Tok, Today’s Headlines, Watermelon Video and other products, it has been proud of the beating of Internet upstarts at home and abroad. In recent years, it has also opened its own way of buying and buying. According to media reports, in 2019, ByteDance spent 9 billion yuan to buy Zhongkun Plaza in Beijing; in June 2020, ByteDance spent 1.082 billion yuan to buy a plot of land located in Shenzhen Houhai Headquarters, next to Tencent Shenzhen headquarters Building; On November 2, 2020, Bytedance officially opened Beijing Fangheng Fashion Center as one of its office locations. This office location was purchased by Bytedance at a cost of 5 billion yuan and is the first proprietary property rights of Bytedance. Office building.
In July 2019, Lei Jun said on his personal Weibo, "Beijing, after struggling for more than nine years, finally bought a house!" Lei Jun bought the house, referring to the Xiaomi Science and Technology Park in Beijing. According to data, the Mi Science Park consists of 8 buildings with an area of 348,000 square meters, a total construction cost of 5.2 billion, and a capacity of more than 16,000 employees. The park officially opened on September 19, 2019.
In November 2020, Meituan won a plot in Yangpu District, Shanghai for RMB 6.541 billion, with an area of 52,600 square meters. It is reported that Meituan will build its headquarters in Shanghai.
According to Kuaishou’s prospectus, on January 15, 2021, Kuaishou entered into a framework agreement with Beijing Shounong Information Industry Investment Co., Ltd., agreeing to purchase several properties with a total construction area of approximately 114,200 square meters through Beijing Kuaishou, with a total consideration of approximately RMB 2.8 billion. The total monthly rent for the first three years is approximately RMB 22.8 million for certain properties and related parking spaces with a total construction area of approximately 119,500 square meters. The property will be mainly used for office purposes, and Kuaishou plans to use internal funds to pay the consideration.
On January 22, 2021, Station B bought a piece of land in Dinghai Community, Yangpu District, Shanghai for 8.118 billion yuan, and a new headquarters building will be built here. This piece of land is located on the East Bund of Yangpu, close to the Huangpu River, with good visibility and excellent terrain. It is reported that the above-ground construction area of the building is about 359,000 square meters, including 289,000 square meters of office buildings, 34,000 square meters of commercial areas, 21,000 square meters of cultural and sports area, and 15,000 square meters of leased housing area; underground area of about 303,600 square meters, including commercial area 92,000 square meters.
Interestingly, the land bought at station B and the land bought by Meituan are next to each other, and the two companies will become neighbors in the future.
According to industry sources, large companies buy buildings because, on the one hand, the existing office space cannot meet the demand for workstations caused by the increase in the number of employees, the demand for space for business expansion, and the need to create a complete, comprehensive, and high-standard service park. Functional Requirements.
On the other hand, for Internet technology companies, the land they bought with huge sums of money can be turned into their fixed assets. In the early years, many companies moved around and moved many times with their employees for the office. Although the purchase of land requires a large amount of cash at one time, it can save rental costs in the long run; the land purchased by the company is real property, which can be deducted to a certain extent, and the input tax can be deducted to a certain extent; buying a building is still an investment, such as the value of the land purchased by Sohu in the early years The land purchased by Sohu is already one of its most valuable assets. This is also a classic model for buying a house in the industry. In addition, local governments will also provide them in order to retain large tax collectors in various districts and drive regional economic development. Some preferential policies have attracted big factories to buy houses.