Tencent Holdings Limited, China's leading internet service provider, Wednesday posted a net profit of 8.054 billion yuan in 2010, up 56.2 percent from the year before.

The internet giant achieved 19.646 billion yuan of revenue, rising 57.93 percent year-on-year. The company's Internet value-added services brought in 15.482 billion yuan, rising 62.45 percent year-on-year. Revenue from the mobile & telecommunications value-added services rosed 42.52 percent to 2.714 billion yuan. Online advertising generated 1.373 billion yuan last year, up 42.65 percent.

The company's board of directors approved a divident of HK$0.55 per share,HK$0.15 higher than 2009.

However, Tencent sees its profit decline this year because it will enter a new phase of investment.

"Besides continuing to invest in our existing businesses, we will also make substantial investment in some of the new strategic fields, such as microblogs, e-commerce, search engine and internet security products," said Ma Huateng, chairman and CEO of the company.

Shares of Tencent rose 1.31 percent Wednesday and closed at HK$216.8.