Chinese internet giant Tencent has reported second quarter revenues of 10.5 billion RMB ($1.6 billion), up 9.1 percent quarter-over-quarter and 56.2 percent year-over-year.   Net profit for Q2 2012 was 3.1 billion RMB ($490.1 million), up 5.1 percent quarter-over-quarter and 32 percent year-over-year.

Revenue from Tencent’s mobile and telecommunications value added services (MVAS) — the category the company’s mobile games, apps and services fall into — was 929 million RMB ($146.9 million), up 1.7 percent from Q1’s 913 million RMB. Although Tencent’s MVAS revenue growth slowed in the second quarter, earnings in the category are still up 17 percent year-over-year. MVAS revenues now account for 8.8 percent of Tencent’s sales, with growth attributed to bundled SMS packages and mobile games.

As we’ve reported before Tencent has been working to expand its smartphone development expertise, and has even released its own line of Android smartphones in order to bolster its mobile userbase.

Although the company classifies Chinese mobile regulations as “uncertain”, the company is still pushing forward to lock down market share in China’s rapidly growing smartphone market. Canalys Research recently reported that China now accounts for 27 percent of all global smartphone shipments, with 42 million units shipped to the country in Q2, up 199 percent year-over-year and 32 percent quarter-over-quarter.

Tencent’s shares are currently trading at 230 Hong Kong dollars ($29.64), giving the company a market capitalization of 419.3 billion Hong Kong dollars ($54.05 billion).