☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange On Which Registered | ||
American depositary shares, each representing one Class Z ordinary share | BILI | Nasdaq Global Select Market | ||
Class Z ordinary shares, par value US$0.0001 per | 9626 |
Large accelerated filer ☒ | Accelerated filer ☐ | Non-accelerated filer ☐ | Emerging growth company ☐ |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP ☒ | International Financial Reporting Standards as issued | Other ☐ | ||||||
by the International Accounting Standards Board ☐ | ||||||||
1 | ||||||||
4 | ||||||||
5 | ||||||||
167 | ||||||||
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | 169 | |||||||
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS | 169 | |||||||
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT | 169 | |||||||
ITEM 16G. CORPORATE GOVERNANCE | 169 | |||||||
ITEM 16H. MINE SAFETY DISCLOSURE | 169 | |||||||
ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS | 169 | |||||||
170 | ||||||||
172 |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share and per share data) | ||||||||||||||||||||||||
Selected Consolidated Statements of Operations and Comprehensive Loss Data: | ||||||||||||||||||||||||
Net revenues | 130,996 | 523,310 | 2,468,449 | 4,128,931 | 6,777,922 | 973,588 | ||||||||||||||||||
Cost of revenues (1) | (303,568 | ) | (772,812 | ) | (1,919,241 | ) | (3,273,493 | ) | (5,587,673 | ) | (802,619 | ) | ||||||||||||
Gross (loss)/profit | (172,572 | ) | (249,502 | ) | 549,208 | 855,438 | 1,190,249 | 170,969 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Sales and marketing expenses (1) | (17,689 | ) | (102,659 | ) | (232,489 | ) | (585,758 | ) | (1,198,516 | ) | (172,156 | ) | ||||||||||||
General and administrative expenses (1) | (153,707 | ) | (451,334 | ) | (260,898 | ) | (461,165 | ) | (592,497 | ) | (85,107 | ) | ||||||||||||
Research and development expenses (1) | (24,915 | ) | (91,222 | ) | (280,093 | ) | (537,488 | ) | (894,411 | ) | (128,474 | ) | ||||||||||||
Total operating expenses | (196,311 | ) | (645,215 | ) | (773,480 | ) | (1,584,411 | ) | (2,685,424 | ) | (385,737 | ) | ||||||||||||
Loss from operations | (368,883 | ) | (894,717 | ) | (224,272 | ) | (728,973 | ) | (1,495,175 | ) | (214,768 | ) | ||||||||||||
Loss before tax | (371,063 | ) | (908,355 | ) | (174,869 | ) | (539,033 | ) | (1,267,703 | ) | (182,093 | ) |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share and per share data) | ||||||||||||||||||||||||
Income tax | (2,425 | ) | (3,141 | ) | (8,881 | ) | (25,988 | ) | (35,867 | ) | (5,152 | ) | ||||||||||||
Net loss | (373,488 | ) | (911,496 | ) | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||||||
Accretion to Pre-IPO preferred shares redemption value | (57,942 | ) | (161,933 | ) | (258,554 | ) | (64,605 | ) | — | — | ||||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO preferred shares | (139,522 | ) | (113,151 | ) | (129,244 | ) | — | — | — | |||||||||||||||
Net loss attributable to noncontrolling interests | 1,912 | 1,430 | — | 13,301 | 14,597 | 2,097 | ||||||||||||||||||
Net loss attributable to the Bilibili Inc.’s shareholders | (569,040 | ) | (1,185,150 | ) | (571,548 | ) | (616,325 | ) | (1,288,973 | ) | (185,148 | ) | ||||||||||||
Net loss | (373,488 | ) | (911,496 | ) | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||
Foreign currency translation adjustments | 47,729 | 58,048 | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||||||||
Total other comprehensive income/(loss) | 47,729 | 58,048 | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||||||||
Total comprehensive loss | (325,759 | ) | (853,448 | ) | (259,445 | ) | (268,991 | ) | (1,163,418 | ) | (167,113 | ) | ||||||||||||
Accretion to Pre-IPO preferred shares redemption value | (57,942 | ) | (161,933 | ) | (258,554 | ) | (64,605 | ) | — | — | ||||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO preferred shares | (139,522 | ) | (113,151 | ) | (129,244 | ) | — | — | — | |||||||||||||||
Net loss attributable to noncontrolling interests | 1,912 | 1,430 | — | 13,301 | 14,597 | 2,097 | ||||||||||||||||||
Comprehensive loss attributable to the Bilibili Inc.’s shareholders | (521,311 | ) | (1,127,102 | ) | (647,243 | ) | (320,295 | ) | (1,148,821 | ) | (165,016 | ) | ||||||||||||
Net loss per share, basic | (9.72 | ) | (20.42 | ) | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||||||
Net loss per share, diluted | (9.72 | ) | (20.42 | ) | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||||||
Net loss per ADS, basic | — | — | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||||||||
Net loss per ADS, diluted | — | — | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||||||||
Weighted average number of ordinary shares, basic | 58,548,310 | 58,038,570 | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||||||||
Weighted average number of ordinary shares, diluted | 58,548,310 | 58,038,570 | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||||||||
Weighted average number of ADS, basic | — | — | — | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||||||||
Weighted average number of ADS, diluted | — | — | — | 233,047,703 | 323,161,680 | 323,161,680 |
(1) | Mr. Rui Chen holds 100% equity interests in Shanghai Kuanyu. He is also the chairman of our board of directors and our chief executive officer. |
(2) | Shanghai Kuanyu has four subsidiaries. |
(3) | Mr. Rui Chen, Mr. Yi Xu and Ms. Ni Li hold 52.3%, 44.3%, and 3.4% equity interests in Hode Information Technology, respectively, as of the date of this annual report. Mr. Chen is our controlling shareholder, the chairman of our board of directors and our chief executive officer. Mr. Xu is our founder, director and president. Ms. Li is the vice chairwoman of our board of directors and chief operating officer. |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost of revenues | 476 | 3,775 | 7,936 | 28,173 | 23,281 | 3,344 | ||||||||||||||||||
Sales and marketing expenses | 94 | 3,029 | 3,423 | 11,499 | 14,269 | 2,050 | ||||||||||||||||||
General and administrative expenses | 100,228 | 353,806 | 56,746 | 102,544 | 68,497 | 9,839 | ||||||||||||||||||
Research and development expenses | 119 | 4,878 | 11,849 | 38,977 | 66,503 | 9,553 | ||||||||||||||||||
Total | 100,917 | 365,488 | 79,954 | 181,193 | 172,550 | 24,786 | ||||||||||||||||||
(4) | Hode Information Technology has 35 subsidiaries. |
As of December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Selected Consolidated Balance Sheet Data: | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | 689,663 | 387,198 | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||||||||
Time deposits | — | — | 1,960 | 749,385 | 1,844,558 | 264,954 | ||||||||||||||||||
Accounts receivable, net | 16,639 | 110,666 | 392,942 | 324,392 | 744,845 | 106,990 | ||||||||||||||||||
Prepayments and other current assets | 86,143 | 185,378 | 477,265 | 990,851 | 1,315,901 | 189,017 | ||||||||||||||||||
Short-term investments | 50,000 | 712,564 | 488,391 | 945,338 | 1,260,810 | 181,104 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Intangible assets, net | 109,515 | 282,472 | 426,292 | 1,419,435 | 1,657,333 | 238,061 | ||||||||||||||||||
Goodwill | — | 50,967 | 50,967 | 941,488 | 1,012,026 | 145,368 | ||||||||||||||||||
Long-term investments, net | 160,644 | 377,031 | 635,952 | 979,987 | 1,251,129 | 179,713 | ||||||||||||||||||
Total assets | 1,156,943 | 2,166,710 | 3,473,525 | 10,490,036 | 15,516,567 | 2,228,815 | ||||||||||||||||||
Total current liabilities | 308,202 | 628,100 | 1,397,994 | 3,298,834 | 4,272,597 | 613,720 | ||||||||||||||||||
Long-term debt | — | — | — | — | 3,414,628 | 490,481 | ||||||||||||||||||
Total mezzanine equity | 1,394,477 | 2,861,613 | 4,015,043 | — | — | — | ||||||||||||||||||
Total shareholders’ (deficit)/equity | (545,736 | ) | (1,323,003 | ) | (1,939,512 | ) | 7,191,202 | 7,636,460 | 1,096,910 |
(5) | Chaodian (Shanghai) Technology Co., Ltd., or “Chaodian Technology”, has entered into a series of contractual arrangements with Shanghai Chaodian Culture Communication Co., Ltd., or “Chaodian Culture”, and its individual shareholders, through which we obtained control over the operations of, and enjoyed all economic benefits of Chaodian Culture. Mr. Rui Chen, Mr. Yi Xu, Ms. Ni Li, Mr. Xujun Chai, Shanghai Kuanyu and Hode Information Technology hold 31.2%, 9.5%, 6.8%, 5.1%, 44.6% and 2.8% equity interests in Chaodian Culture, respectively, as of the date of this annual report. Mr. Xujun Chai is an employee of our company. |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 (1) | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Selected Consolidated Statements of Cash Flow Data: | ||||||||||||||||||||||||
Net cash (used in)/provided by operating activities | (191,935 | ) | (198,967 | ) | 464,550 | 737,286 | 194,551 | 27,946 | ||||||||||||||||
Net cash used in investing activities | (355,449 | ) | (1,187,300 | ) | (716,254 | ) | (3,196,394 | ) | (3,958,277 | ) | (568,570 | ) | ||||||||||||
Net cash provided by financing activities | 1,099,184 | 1,024,087 | 675,533 | 4,974,810 | 5,078,842 | 729,530 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | 42,953 | 49,606 | (48,145 | ) | 261,447 | 107,513 | 15,442 | |||||||||||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash | 594,753 | (312,574 | ) | 375,684 | 2,777,149 | 1,422,629 | 204,348 | |||||||||||||||||
Cash and cash equivalents and restricted cash at beginning of the year | 105,019 | 699,772 | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||||||||
Cash and cash equivalents and restricted cash at end of the year | 699,772 | 387,198 | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||||||||
Taxation Calculation (1) | ||||
Hypothetical pre-tax earnings(2) | 100.0 | % | ||
Tax on earnings at statutory rate of 25% (3) | (25.0 | )% | ||
Net earnings available for distribution | 75.0 | % | ||
Withholding tax at standard rate of 10% (4) | (7.5 | )% | ||
Net distribution to Parent/Shareholders | 67.5 | % |
(1) |
(2) | Under the terms of VIE agreements, our PRC subsidiaries may charge the VIEs for services provided to VIEs. These fees shall be recognized as expenses of the VIEs, with a corresponding amount as service income by our PRC subsidiaries and eliminate in consolidation. For income tax purposes, our PRC subsidiaries and VIEs file income tax returns on a separate company basis. The fees paid are recognized as a tax deduction by the VIEs and as income by our PRC subsidiaries and are tax neutral. |
(3) | Certain of our subsidiaries and VIEs qualifies for a 15% preferential income tax rate in China. However, such rate is subject to qualification, temporary in nature, and may not be available in a future period when distributions are paid. For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate would be effective. |
(4) | PRC Enterprise Income Tax Law imposes a withholding income tax of 10% on dividends distributed by a Foreign Invested Enterprises (“FIE”) to its immediate holding company outside of China. A lower withholding income tax rate of 5% is applied if the FIE’s immediate holding company is registered in Hong Kong or other jurisdictions that have a tax treaty arrangement with China, subject to specific qualification requirements at the time of the distribution. For purposes of this hypothetical example, the table above assumes a maximum tax scenario under which the full withholding tax would be applied even though we have Hong Kong subsidiaries and would likely make any dividends through them. |
For the Year Ended December 31, 2021 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Third-party revenues | — | 258,686 | 6,257,462 | 12,867,536 | — | 19,383,684 | ||||||||||||||||||
Inter-company consulting and services revenues (1) | — | 590,905 | 2,367 | — | (593,272 | ) | — | |||||||||||||||||
Other inter-company revenues (2) | — | 2,054,227 | 403,379 | 1,574,896 | (4,032,502 | ) | — | |||||||||||||||||
Total revenues | — | 2,903,818 | 6,663,208 | 14,442,432 | (4,625,774 | ) | 19,383,684 | |||||||||||||||||
Third-party costs and expenses | (12,405 | ) | (5,448,830 | ) | (4,068,228 | ) | (16,283,295 | ) | — | (25,812,758 | ) | |||||||||||||
Inter-company consulting and services costs and expenses (1) | — | — | — | (593,272 | ) | 593,272 | — | |||||||||||||||||
Other inter-company costs and expenses (2) | — | (515,329 | ) | (3,246,077 | ) | (271,096 | ) | 4,032,502 | — | |||||||||||||||
Total costs and expenses | (12,405 | ) | (5,964,159 | ) | (7,314,305 | ) | (17,147,663 | ) | 4,625,774 | (25,812,758 | ) | |||||||||||||
Loss from subsidiaries and VIEs (3) | (6,713,764 | ) | (3,518,404 | ) | (2,897,007 | ) | — | 13,129,175 | — | |||||||||||||||
(Loss)/Gain from non-operations | (63,059 | ) | (110,321 | ) | 52,150 | (163,146 | ) | — | (284,376 | ) | ||||||||||||||
Loss before income tax expenses | (6,789,228 | ) | (6,689,066 | ) | (3,495,954 | ) | (2,868,377 | ) | 13,129,175 | (6,713,450 | ) | |||||||||||||
Income tax expenses | — | (33,842 | ) | (22,450 | ) | (38,997 | ) | — | (95,289 | ) | ||||||||||||||
Net loss | (6,789,228 | ) | (6,722,908 | ) | (3,518,404 | ) | (2,907,374 | ) | 13,129,175 | (6,808,739 | ) | |||||||||||||
Net loss attributable to noncontrolling interests | — | 9,144 | — | 10,367 | — | 19,511 | ||||||||||||||||||
Net loss attributable to Bilibili Inc.’s shareholders | (6,789,228 | ) | (6,713,764 | ) | (3,518,404 | ) | (2,897,007 | ) | 13,129,175 | (6,789,228 | ) | |||||||||||||
For the Year Ended December 31, 2020 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Third-party revenues | — | 92,898 | 2,254,871 | 9,651,207 | — | 11,998,976 | ||||||||||||||||||
Inter-company consulting and services revenues (1) | — | 1,007,741 | 13,855 | — | (1,021,596 | ) | — | |||||||||||||||||
Other inter-company revenues (2) | — | 1,059,370 | 166,860 | 667,765 | (1,893,995 | ) | — | |||||||||||||||||
Total revenues | — | 2,160,009 | 2,435,586 | 10,318,972 | (2,915,591 | ) | 11,998,976 | |||||||||||||||||
Third-party costs and expenses | (44,090 | ) | (3,318,462 | ) | (1,846,340 | ) | (9,931,047 | ) | — | (15,139,939 | ) | |||||||||||||
Inter-company consulting and services costs and expenses (1) | — | — | — | (1,021,596 | ) | 1,021,596 | — | |||||||||||||||||
Other inter-company costs and expenses (2) | — | (256,902 | ) | (1,435,506 | ) | (201,587 | ) | 1,893,995 | — | |||||||||||||||
Total costs and expenses | (44,090 | ) | (3,575,364 | ) | (3,281,846 | ) | (11,154,230 | ) | 2,915,591 | (15,139,939 | ) | |||||||||||||
Loss from subsidiaries and VIEs (3) | (2,940,906 | ) | (1,632,936 | ) | (845,469 | ) | — | 5,419,311 | — | |||||||||||||||
(Loss)/Gain from non-operations | (26,708 | ) | 79,138 | 79,517 | 8,368 | — | 140,315 | |||||||||||||||||
Loss before income tax expenses | (3,011,704 | ) | (2,969,153 | ) | (1,612,212 | ) | (826,890 | ) | 5,419,311 | (3,000,648 | ) | |||||||||||||
Income tax expenses | — | (5,565 | ) | (20,724 | ) | (27,080 | ) | — | (53,369 | ) | ||||||||||||||
Net loss | (3,011,704 | ) | (2,974,718 | ) | (1,632,936 | ) | (853,970 | ) | 5,419,311 | (3,054,017 | ) | |||||||||||||
Net loss attributable to noncontrolling interests | — | 38,104 | — | 8,501 | — | 46,605 | ||||||||||||||||||
Accretion to redeemable noncontrolling Interests | — | (4,292 | ) | — | — | — | (4,292 | ) | ||||||||||||||||
Net loss attributable to Bilibili Inc.’s shareholders | (3,011,704 | ) | (2,940,906 | ) | (1,632,936 | ) | (845,469 | ) | 5,419,311 | (3,011,704 | ) | |||||||||||||
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Third-party revenues | — | 5,010 | 716,580 | 6,056,332 | — | 6,777,922 | ||||||||||||||||||
Inter-company consulting and services revenues (1) | — | 1,266,411 | — | — | (1,266,411 | ) | — | |||||||||||||||||
Other inter-company revenues (2) | — | 301,674 | 88,174 | 531,830 | (921,678 | ) | — | |||||||||||||||||
Total revenues | — | 1,573,095 | 804,754 | 6,588,162 | (2,188,089 | ) | 6,777,922 | |||||||||||||||||
Third-party costs and expenses | (14,762 | ) | (1,774,197 | ) | (688,312 | ) | (5,795,826 | ) | — | (8,273,097 | ) | |||||||||||||
Inter-company consulting and services costs and expenses (1) | — | — | — | (1,266,411 | ) | 1,266,411 | — | |||||||||||||||||
Other inter-company costs and expenses (2) | — | (320,724 | ) | (525,402 | ) | (75,552 | ) | 921,678 | — | |||||||||||||||
Total costs and expenses | (14,762 | ) | (2,094,921 | ) | (1,213,714 | ) | (7,137,789 | ) | 2,188,089 | (8,273,097 | ) | |||||||||||||
Loss from subsidiaries and VIEs (3) | (1,311,565 | ) | (859,014 | ) | (446,178 | ) | — | 2,616,757 | — | |||||||||||||||
Gain/(Loss) from non-operations | 37,354 | 71,878 | (3,876 | ) | 122,116 | — | 227,472 | |||||||||||||||||
Loss before income tax expenses | (1,288,973 | ) | (1,308,962 | ) | (859,014 | ) | (427,511 | ) | 2,616,757 | (1,267,703 | ) | |||||||||||||
Income tax expenses | — | (15,264 | ) | — | (20,603 | ) | — | (35,867 | ) | |||||||||||||||
Net loss | (1,288,973 | ) | (1,324,226 | ) | (859,014 | ) | (448,114 | ) | 2,616,757 | (1,303,570 | ) | |||||||||||||
Net loss attributable to noncontrolling interests | — | 12,661 | — | 1,936 | — | 14,597 | ||||||||||||||||||
Net loss attributable to Bilibili Inc.’s shareholders | (1,288,973 | ) | (1,311,565 | ) | (859,014 | ) | (446,178 | ) | 2,616,757 | (1,288,973 | ) | |||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Cash and cash equivalents | 1,748,896 | 4,956,403 | 440,695 | 377,114 | — | 7,523,108 | ||||||||||||||||||
Time deposits | 7,625,337 | — | — | 6,997 | — | 7,632,334 | ||||||||||||||||||
Accounts receivable, net | — | 79,350 | 778,667 | 524,311 | — | 1,382,328 | ||||||||||||||||||
Amounts due from Group companies (4) | 23,306,176 | 9,329,586 | 8,680,893 | 391,951 | (41,708,606 | ) | — | |||||||||||||||||
Amount due from related parties | — | 1,937,592 | 1,741 | 101,983 | — | 2,041,316 | ||||||||||||||||||
Prepayments and other current assets | 11,773 | 280,689 | 708,401 | 1,806,185 | — | 2,807,048 | ||||||||||||||||||
Short-term investments | 13,107,720 | 767,935 | 257,943 | 927,124 | — | 15,060,722 | ||||||||||||||||||
Long-term investments, net | 1,448,100 | 2,038,157 | 270,801 | 1,745,466 | — | 5,502,524 | ||||||||||||||||||
Other non-current assets | — | 3,711,745 | 1,465,037 | 4,926,989 | — | 10,103,771 | ||||||||||||||||||
Total assets | 47,248,002 | 23,101,457 | 12,604,178 | 10,808,120 | (41,708,606 | ) | 52,053,151 | |||||||||||||||||
Accounts payable | — | 244,808 | 951,797 | 3,164,301 | — | 4,360,906 | ||||||||||||||||||
Salary and welfare payables | — | 641,560 | 10,883 | 343,008 | — | 995,451 | ||||||||||||||||||
Taxes payable | — | 55,575 | 19,378 | 128,817 | — | 203,770 | ||||||||||||||||||
Short-term loans | — | 688,448 | 143,658 | 400,000 | — | 1,232,106 | ||||||||||||||||||
Deferred revenue | 40,167 | 962 | 411,800 | 2,192,460 | — | 2,645,389 | ||||||||||||||||||
Accrued liabilities and other payables | 126,512 | 807,547 | 298,373 | 1,184,523 | — | 2,416,955 | ||||||||||||||||||
Amounts due to Group companies (4) | — | 24,009,991 | 10,484,469 | 7,214,146 | (41,708,606 | ) | — | |||||||||||||||||
Amounts due to related parties | — | 98,207 | 326 | 117,901 | — | 216,434 | ||||||||||||||||||
Other long-term payable | 17,784,092 | 259,161 | 102 | 222,719 | — | 18,266,074 | ||||||||||||||||||
Deficit in subsidiaries and VIEs (3) | 7,593,564 | 3,887,067 | 4,170,459 | — | (15,651,090 | ) | — | |||||||||||||||||
Total liabilities | 25,544,335 | 30,693,326 | 16,491,245 | 14,967,875 | (57,359,696 | ) | 30,337,085 | |||||||||||||||||
Total Bilibili Inc’s Shareholders’ equity/(deficit) (3) | 21,703,667 | (7,593,564 | ) | (3,887,067 | ) | (4,170,459 | ) | 15,651,090 | 21,703,667 | |||||||||||||||
Noncontrolling interests | — | 1,695 | — | 10,704 | — | 12,399 | ||||||||||||||||||
Total shareholders’ equity/(deficit) | 21,703,667 | (7,591,869 | ) | (3,887,067 | ) | (4,159,755 | ) | 15,651,090 | 21,716,066 | |||||||||||||||
Total liabilities and shareholders’ equity/(deficit) | 47,248,002 | 23,101,457 | 12,604,178 | 10,808,120 | (41,708,606 | ) | 52,053,151 | |||||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Cash and cash equivalents | 159,040 | 3,574,397 | 595,482 | 349,190 | — | 4,678,109 | ||||||||||||||||||
Time deposits | 4,697,928 | — | — | 22,161 | — | 4,720,089 | ||||||||||||||||||
Accounts receivable, net | — | 28,123 | 682,419 | 343,099 | — | 1,053,641 | ||||||||||||||||||
Amounts due from Group companies (4) | 12,559,285 | 5,889,341 | 3,640,606 | 173,596 | (22,262,828 | ) | — | |||||||||||||||||
Amount due from related parties | — | 105,602 | 13 | 59,117 | — | 164,732 | ||||||||||||||||||
Prepayments and other current assets | 80,246 | 70,025 | 231,868 | 1,383,648 | — | 1,765,787 | ||||||||||||||||||
Short-term investments | 716,658 | 318,273 | 1,146,949 | 1,175,309 | — | 3,357,189 | ||||||||||||||||||
Long-term investments, net | 935,594 | 61,076 | 12,325 | 1,223,943 | — | 2,232,938 | ||||||||||||||||||
Other non-current assets | — | 2,736,729 | 972,983 | 2,183,411 | — | 5,893,123 | ||||||||||||||||||
Total assets | 19,148,751 | 12,783,566 | 7,282,645 | 6,913,474 | (22,262,828 | ) | 23,865,608 | |||||||||||||||||
Accounts payable | — | 114,301 | 627,625 | 2,332,372 | — | 3,074,298 | ||||||||||||||||||
Salary and welfare payables | — | 430,030 | 15,660 | 288,686 | — | 734,376 | ||||||||||||||||||
Taxes payable | — | 9,015 | 11,685 | 106,492 | — | 127,192 | ||||||||||||||||||
Short-term loans | — | — | — | 100,000 | — | 100,000 | ||||||||||||||||||
Deferred revenue | 30,646 | 12,412 | 304,956 | 1,769,992 | — | 2,118,006 | ||||||||||||||||||
Accrued liabilities and other payables | 84,539 | 656,345 | 47,422 | 449,370 | — | 1,237,676 | ||||||||||||||||||
Amounts due to Group companies (4) | — | 12,357,299 | 6,152,556 | 3,752,973 | (22,262,828 | ) | — | |||||||||||||||||
Other long-term payable | 8,340,922 | 331,294 | — | 19,640 | — | 8,691,856 | ||||||||||||||||||
Deficit in subsidiaries and VIEs (3) | 3,092,444 | 1,818,983 | 1,941,724 | — | (6,853,151 | ) | — | |||||||||||||||||
Total liabilities | 11,548,551 | 15,729,679 | 9,101,628 | 8,819,525 | (29,115,979 | ) | 16,083,404 | |||||||||||||||||
Total Bilibili Inc’s Shareholders’ equity/(deficit) (3) | 7,600,200 | (3,092,444 | ) | (1,818,983 | ) | (1,941,724 | ) | 6,853,151 | 7,600,200 | |||||||||||||||
Noncontrolling interests | — | 146,331 | — | 35,673 | — | 182,004 | ||||||||||||||||||
Total shareholders’ equity/(deficit) | 7,600,200 | (2,946,113 | ) | (1,818,983 | ) | (1,906,051 | ) | 6,853,151 | 7,782,204 | |||||||||||||||
Total liabilities and shareholders’ equity/(deficit) | 19,148,751 | 12,783,566 | 7,282,645 | 6,913,474 | (22,262,828 | ) | 23,865,608 | |||||||||||||||||
For the Year Ended December 31, 2021 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Consulting and services charges from/(to) Group companies | — | 637,787 | — | (637,787 | ) | — | — | |||||||||||||||||
Other operating cashflow from/(to) Group companies | — | 854,325 | (2,538,232 | ) | 1,683,907 | — | — | |||||||||||||||||
Operating cashflow (to)/from third-parties | (104,672 | ) | (3,382,667 | ) | 2,569,410 | (1,729,079 | ) | — | (2,647,008 | ) | ||||||||||||||
Net cash (used in)/provided by operating activities | (104,672 | ) | (1,890,555 | ) | 31,178 | (682,959 | ) | — | (2,647,008 | ) | ||||||||||||||
Investments in and loans to subsidiaries, VIEs and VIEs’ subsidiaries (3)(4) | (11,168,671 | ) | (2,409,051 | ) | (3,012,727 | ) | — | 16,590,449 | — | |||||||||||||||
Purchase of short-term investments | (48,781,106 | ) | (3,643,036 | ) | (6,714,400 | ) | (12,610,305 | ) | — | (71,748,847 | ) | |||||||||||||
Maturities of short-term investments | 36,744,305 | 3,224,958 | 7,601,200 | 12,954,425 | — | 60,524,888 | ||||||||||||||||||
Placements of time deposits | (10,658,126 | ) | — | — | (39,318 | ) | — | (10,697,444 | ) | |||||||||||||||
Maturities of time deposits | 7,600,828 | — | — | 54,319 | — | 7,655,147 | ||||||||||||||||||
Other investing activities | (1,153,850 | ) | (4,811,039 | ) | (1,081,210 | ) | (3,265,756 | ) | — | (10,311,855 | ) | |||||||||||||
Net cash used in investing activities | (27,416,620 | ) | (7,638,168 | ) | (3,207,137 | ) | (2,906,635 | ) | 16,590,449 | (24,578,111 | ) | |||||||||||||
Investments and loans from subsidiaries, VIEs and VIEs’ subsidiaries (3)(4) | — | 10,407,294 | 2,875,929 | 3,307,226 | (16,590,449 | ) | — | |||||||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs of HKD337,143 | 19,288,423 | — | — | — | — | 19,288,423 | ||||||||||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$13,857 | 10,085,520 | — | — | — | — | 10,085,520 | ||||||||||||||||||
Other financing activities | 3 | 571,548 | 143,658 | 300,000 | — | 1,015,209 | ||||||||||||||||||
Net cash provided by financing activities | 29,373,946 | 10,978,842 | 3,019,587 | 3,607,226 | (16,590,449 | ) | 30,389,152 | |||||||||||||||||
For the Year Ended December 31, 2020 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Consulting and services charges from/(to) Group companies | — | 1,074,899 | — | (1,074,899 | ) | — | — | |||||||||||||||||
Other operating cashflow from/(to) Group companies | — | 503,109 | (1,089,126 | ) | 586,017 | — | — | |||||||||||||||||
Operating cashflow (to)/from third-parties | (113,574 | ) | (1,950,786 | ) | 852,087 | 1,965,376 | — | 753,103 | ||||||||||||||||
Net cash (used in)/provided by operating activities | (113,574 | ) | (372,778 | ) | (237,039 | ) | 1,476,494 | — | 753,103 | |||||||||||||||
Investments in and loans to subsidiaries, VIEs and VIEs’ subsidiaries (3)(4) | (5,102,250 | ) | (2,728,972 | ) | (1,257,779 | ) | — | 9,089,001 | — | |||||||||||||||
Purchase of short-term investments | (455,347 | ) | (6,342,424 | ) | (5,959,501 | ) | (13,973,904 | ) | — | (26,731,176 | ) | |||||||||||||
Maturities of short-term investments | 465,726 | 6,083,275 | 4,874,052 | 13,498,485 | — | 24,921,538 | ||||||||||||||||||
Placements of time deposits | (9,604,228 | ) | (1,277,553 | ) | — | (25,515 | ) | — | (10,907,296 | ) | ||||||||||||||
Maturities of time deposits | 4,925,241 | 2,737,236 | — | 7,896 | — | 7,670,373 | ||||||||||||||||||
Other investing activities | (600,067 | ) | (973,590 | ) | (358,478 | ) | (1,928,125 | ) | — | (3,860,260 | ) | |||||||||||||
Net cash used in investing activities | (10,370,925 | ) | (2,502,028 | ) | (2,701,706 | ) | (2,421,163 | ) | 9,089,001 | (8,906,821 | ) | |||||||||||||
Investments and loans from subsidiaries, VIEs and VIEs’ subsidiaries (3)(4) | — | 4,922,860 | 3,175,854 | 990,287 | (9,089,001 | ) | — | |||||||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs of US$563 | 2,817,458 | — | — | — | — | 2,817,458 | ||||||||||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$13,857 | 5,594,779 | — | — | — | — | 5,594,779 | ||||||||||||||||||
Other financing activities | 3 | (176,821 | ) | — | 100,000 | — | (76,818 | ) | ||||||||||||||||
Net cash provided by financing activities | 8,412,240 | 4,746,039 | 3,175,854 | 1,090,287 | (9,089,001 | ) | 8,335,419 | |||||||||||||||||
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||
Bilibili Inc. | Other Subsidiaries | Primary Beneficiaries of VIEs | VIEs and VIEs’ Subsidiaries | Eliminating adjustments | Consolidated Totals | |||||||||||||||||||
(RMB, in thousands) | ||||||||||||||||||||||||
Consulting and services charges from/(to) Group companies | — | 1,510,512 | 68,700 | (1,579,212 | ) | — | — | |||||||||||||||||
Other operating cashflow (to)/from Group companies | — | (542,315 | ) | (485,077 | ) | 1,027,392 | — | — | ||||||||||||||||
Operating cashflow (to)/from third-parties | (17,418 | ) | (1,516,853 | ) | 905,703 | 823,119 | — | 194,551 | ||||||||||||||||
Net cash (used in)/provided by operating activities | (17,418 | ) | (548,656 | ) | 489,326 | 271,299 | — | 194,551 | ||||||||||||||||
Investments in and loans to subsidiaries, VIEs and VIEs’ subsidiaries (3)(4) | (4,731,748 | ) | (1,518,767 | ) | (551,137 | ) | — | 6,801,652 | — | |||||||||||||||
Purchase of short-term investments | (101,003 | ) | (2,399,107 | ) | (938,100 | ) | (6,535,669 | ) | — | (9,973,879 | ) | |||||||||||||
Maturities of short-term investments | 69,762 | 2,895,102 | 914,800 | 6,113,861 | — | 9,993,525 | ||||||||||||||||||
Placements of time deposits | (2,552,392 | ) | (2,360,123 | ) | — | (7,584 | ) | — | (4,920,099 | ) | ||||||||||||||
Maturities of time deposits | 2,267,265 | 1,602,309 | — | 7,584 | — | 3,877,158 | ||||||||||||||||||
Other investing activities | (440,026 | ) | (826,161 | ) | (571,672 | ) | (1,097,123 | ) | — | (2,934,982 | ) | |||||||||||||
Net cash used in investing activities | (5,488,142 | ) | (2,606,747 | ) | (1,146,109 | ) | (1,518,931 | ) | 6,801,652 | (3,958,277 | ) | |||||||||||||
Investments and loans from subsidiaries, VIEs and VIEs’ subsidiaries (3)(4) | — | 4,493,163 | 1,007,749 | 1,300,740 | (6,801,652 | ) | — | |||||||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs of US$9,376 | 1,647,711 | — | — | — | — | 1,647,711 | ||||||||||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$11,805 | 3,356,106 | — | — | — | — | 3,356,106 | ||||||||||||||||||
Other financing activities | 531,237 | (456,212 | ) | — | — | — | 75,025 | |||||||||||||||||
Net cash provided by financing activities | 5,535,054 | 4,036,951 | 1,007,749 | 1,300,740 | (6,801,652 | ) | 5,078,842 | |||||||||||||||||
(1) | It represents the elimination of the intercompany consulting and services charges at the consolidation level. |
(2) | It mainly includes technical support services provided by other subsidiaries and VIEs to the primary beneficiaries of VIEs. |
(3) | It represents the elimination of the investment among Bilibili Inc., other subsidiaries, primary beneficiaries of VIEs, and VIEs and VIEs’ subsidiaries. |
(4) | It represents the elimination of intercompany balances among Bilibili Inc., other subsidiaries, primary beneficiaries of VIEs, and VIEs and VIEs’ subsidiaries. |
A. | [Reserved] |
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
A. | History and Development of the Company |
B. | Business Overview |
(i) | the real-name registration system requires users to register with valid identity information and the users without real-name authentication will not be able to log into the game after 1 hour’s trial playing in visitor experience mode for 15 days; |
(ii) | the users are not allowed to top up or purchase game virtual items in visitor experience mode; |
(iii) | the accumulated time of minors playing game each day is monitored, calculated and limited to less than three hours per day on PRC statutory holidays and 1.5 hours per day during other times, and upon exceeding such time limit, a notification will pop up and the player will be forced to log out; |
(iv) | minors are not able to log into the game between 10:00 p.m. and 8:00 a.m.; and |
(v) | consumption limits for minors have been implemented as required by the relevant regulatory guidance. |
C. | Organizational Structure |
(1) | Mr. Rui Chen holds 100% equity interests in Shanghai Kuanyu. He is also the chairman of our board of directors and our chief executive officer. |
(2) | Shanghai Kuanyu has four subsidiaries. |
(3) | Mr. Rui Chen, Mr. Yi Xu and Ms. Ni Li |
(4) | Hode Information Technology has 35 subsidiaries. |
(5) | Chaodian Technology has entered into a series of contractual arrangements with Chaodian Culture and its individual shareholders, through which we obtained control over the operations of, and enjoyed all economic benefits of Chaodian Culture. Mr. Rui Chen, Mr. Yi Xu, Ms. Ni Li, Mr. Xujun Chai, Shanghai Kuanyu and Hode Information Technology hold 31.2%, 9.5%, 6.8%, 5.1%, 44.6% and 2.8% equity interests in Chaodian Culture, respectively, as of the date of this annual report. Mr. Xujun Chai is an employee of our company. |
1. | the sale, transfer, mortgage or otherwise dispose of any assets (except for those of value less than RMB1 million in the ordinary course of business of the consolidated affiliated entities), business, management right or beneficial interest of income or create any security interest on any assets, including but not limited to any mortgage, pledge, share options or other guarantee arrangements; |
2. | the provision of any guarantee or any fees to third parties or the occurrence of any indebtedness (except for those reasonable costs incurred in the ordinary course of business); |
3. | the entering into of any material contracts (except for those where contract amount is less than RMB1 million and those which are entered into within the ordinary course of business of the consolidated affiliated entities between Shanghai Kuanyu and Hode Shanghai and its related parties); |
4. | any merger, acquisition, restructuring or liquidation; and |
5. | cause any conflict of interest between Shanghai Kuanyu and Hode Shanghai as well as its shareholders. |
1. | Shanghai Kuanyu shall not in any manner supplement, change or alter its constitutional documents or increase or decrease its registered capital or change the structure of its registered capital in other manner; |
2. | Shanghai Kuanyu shall prudently and effectively operate its business and transactions in accordance with the good financial and business standards; |
3. | Shanghai Kuanyu shall not sell, transfer, mortgage or otherwise dispose of any assets, business, legal or beneficial interest of its income or allow any guarantee or security to be created on its assets except for those of value less than RMB 1 million required for normal business operations; |
4. | Shanghai Kuanyu shall not incur, inherit, guarantee or allow any indebtedness other than those having been disclosed to and consented by Hode Shanghai in writing or those made during the ordinary course of its business; |
5. | Shanghai Kuanyu shall not enter into any material contracts with an amount more than RMB1 million without Hode Shanghai’s prior written consent, except the contracts executed in the ordinary course of business or contracts entered between Shanghai Kuanyu and Bilibili (or any of its subsidiaries); |
6. | Shanghai Kuanyu shall operate its business in order to maintain its asset value or not allow any acts or omission which adversely affects its business or assets value; |
7. | Shanghai Kuanyu shall immediately inform Hode Shanghai if its assets or business involved in any disputes, litigations, arbitrations or administrative proceedings; |
8. | Shanghai Kuanyu shall not distribute any dividend to its shareholder without Hode Shanghai’s written consent. To the extent permitted under the relevant PRC laws and regulations, Mr. Rui Chen shall inform and transfer all distributable receivable by him to Hode Shanghai as soon as possible after receiving such interests; |
9. | Shanghai Kuanyu and its affiliates shall provide its operation and financial information to Hode Shanghai or its designated person upon Hode Shanghai’s request; |
10. | Shanghai Kuanyu shall not separate, or merge, or enter into joint operation agreements with other entities, or acquire or be acquired by other entities, or invest in any entities without Hode Shanghai’s written consent; |
11. | Shanghai Kuanyu shall sign all necessary and appropriate documents, take all necessary and proper acts, bring up all necessary and proper requests, or raise necessary and proper defenses against claims to maintain Shanghai Kuanyu and its affiliates’ ownership for all the assets; |
12. | if Mr. Rui Chen or Shanghai Kuanyu fails to perform the tax obligations under applicable laws and results in obstacles for Hode Shanghai to exercise its exclusive option right, Shanghai Kuanyu or Mr. Rui Chen shall pay the taxes or pay the same amount to Hode Shanghai so Hode Shanghai may pay the taxes instead; and |
13. | Shanghai Kuanyu shall take all necessary and proper acts to ensure that all government permits, licenses, authorizations, and approvals required by Shanghai Kuanyu and its affiliates to conduct their businesses are valid and make all necessary changes as required by the relevant PRC laws and regulations. |
D. | Property, Plant and Equipment |
A. | Operating Results |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Average MAUs | 77,454.2 | 85,041.4 | 92,748.0 | 92,766.2 | 101,334.7 | 110,352.7 | 127,876.2 | 130,276.9 |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Average MAUs (1) | 172.4 | 171.6 | 197.2 | 202.0 | 223.3 | 237.1 | 267.2 | 271.7 |
(1) | Our MAUs include mobile apps MAUs and PC MAUs after eliminating duplicates of users who utilize both terminals. We calculate mobile apps MAUs based on the number of mobile devices (including smart TV and other smart devices) that launched our mobile apps during a given month. |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Average MAUs | 77,454.2 | 85,041.4 | 92,748.0 | 92,766.2 | 101,334.7 | 110,352.7 | 127,876.2 | 130,276.9 | ||||||||||||||||||||||||
Average monthly paying users | 2,472.5 | 2,966.2 | 3,540.2 | 4,415.8 | 5,742.6 | 6,258.5 | 7,946.6 | 8,817.4 | ||||||||||||||||||||||||
Average monthly paying users for mobile games | 829.9 | 817.4 | 913.9 | 879.1 | 1,023.2 | 971.3 | 1,460.6 | 1,256.0 | ||||||||||||||||||||||||
(in RMB) | ||||||||||||||||||||||||||||||||
Average monthly revenue per paying user | 105.7 | 102.2 | 86.0 | 69.0 | 67.6 | 66.4 | 58.1 | 54.5 | ||||||||||||||||||||||||
Average monthly revenue per paying user for mobile games | 276.5 | 322.6 | 271.4 | 270.3 | 284.6 | 315.7 | 213.0 | 231.3 |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Average MAUs | 172.4 | 171.6 | 197.2 | 202.0 | 223.3 | 237.1 | 267.2 | 271.7 | ||||||||||||||||||||||||
Average monthly paying users | 13.4 | 12.9 | 15.0 | 17.9 | 20.5 | 20.9 | 23.9 | 24.5 | ||||||||||||||||||||||||
(In RMB) | ||||||||||||||||||||||||||||||||
Average monthly revenue per paying user | 48.3 | 53.8 | 50.1 | 44.2 | 43.4 | 45.8 | 46.0 | 43.4 |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||
Mobile games | 2,058,226 | 83.4 | % | 2,936,331 | 71.1 | % | 3,597,809 | 516,793 | 53.1 | % | ||||||||||||||||||
Live broadcasting and VAS | 176,443 | 7.1 | % | 585,643 | 14.2 | % | 1,641,043 | 235,721 | 24.2 | % | ||||||||||||||||||
Advertising | 159,160 | 6.5 | % | 463,490 | 11.2 | % | 817,016 | 117,357 | 12.1 | % | ||||||||||||||||||
E-commerce and others | 74,620 | 3.0 | % | 143,467 | 3.5 | % | 722,054 | 103,717 | 10.6 | % | ||||||||||||||||||
Total net revenues | 2,468,449 | 100.0 | % | 4,128,931 | 100.0 | % | 6,777,922 | 973,588 | 100.0 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||
Mobile games | 3,597,809 | 53.1 | % | 4,803,382 | 40.0 | % | 5,090,926 | 798,877 | 26.3 | % | ||||||||||||||||||
Value-added services | 1,641,043 | 24.2 | % | 3,845,663 | 32.0 | % | 6,934,886 | 1,088,235 | 35.8 | % | ||||||||||||||||||
Advertising | 817,016 | 12.1 | % | 1,842,772 | 15.4 | % | 4,523,421 | 709,823 | 23.3 | % | ||||||||||||||||||
E-commerce and others | 722,054 | 10.6 | % | 1,507,159 | 12.6 | % | 2,834,451 | 444,787 | 14.6 | % | ||||||||||||||||||
Total net revenues | 6,777,922 | 100.0 | % | 11,998,976 | 100.0 | % | 19,383,684 | 3,041,722 | 100.0 | % | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||
Revenue-sharing costs | 926,315 | 48.3 | % | 1,630,881 | 49.8 | % | 2,494,416 | 358,300 | 44.6 | % | ||||||||||||||||||
Content costs | 261,534 | 13.6 | % | 543,009 | 16.6 | % | 1,001,600 | 143,871 | 17.9 | % | ||||||||||||||||||
Staff costs | 128,268 | 6.7 | % | 238,793 | 7.3 | % | 356,688 | 51,235 | 6.4 | % | ||||||||||||||||||
Server and bandwidth costs | 468,903 | 24.4 | % | 618,737 | 18.9 | % | 919,753 | 132,114 | 16.5 | % | ||||||||||||||||||
Others | 134,221 | 7.0 | % | 242,073 | 7.4 | % | 815,216 | 117,099 | 14.6 | % | ||||||||||||||||||
Total cost of revenues | 1,919,241 | 100 | % | 3,273,493 | 100 | % | 5,587,673 | 802,619 | 100 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||
Revenue-sharing costs | 2,494,416 | 44.6 | % | 4,366,490 | 47.7 | % | 7,733,330 | 1,213,528 | 50.4 | % | ||||||||||||||||||
Content costs | 1,001,600 | 17.9 | % | 1,875,546 | 20.5 | % | 2,694,839 | 422,879 | 17.6 | % | ||||||||||||||||||
Server and bandwidth costs | 919,753 | 16.5 | % | 1,141,257 | 12.5 | % | 1,565,923 | 245,727 | 10.2 | % | ||||||||||||||||||
E-commerce and others | 1,171,904 | 21.0 | % | 1,775,507 | 19.3 | % | 3,346,445 | 525,131 | 21.8 | % | ||||||||||||||||||
Total cost of revenues | 5,587,673 | 100 | % | 9,158,800 | 100.0 | % | 15,340,537 | 2,407,265 | 100.0 | % | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses | 232,489 | 30.1 | % | 585,758 | 37.0 | % | 1,198,516 | 172,156 | 44.6 | % | ||||||||||||||||||
General and administrative expenses | 260,898 | 33.7 | % | 461,165 | 29.1 | % | 592,497 | 85,107 | 22.1 | % | ||||||||||||||||||
Research and development expenses | 280,093 | 36.2 | % | 537,488 | 33.9 | % | 894,411 | 128,474 | 33.3 | % | ||||||||||||||||||
Total operating expenses | 773,480 | 100 | % | 1,584,411 | 100 | % | 2,685,424 | 385,737 | 100 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses | 1,198,516 | 44.6 | % | 3,492,091 | 58.4 | % | 5,794,853 | 909,339 | 55.3 | % | ||||||||||||||||||
General and administrative expenses | 592,497 | 22.1 | % | 976,082 | 16.3 | % | 1,837,506 | 288,345 | 17.6 | % | ||||||||||||||||||
Research and development expenses | 894,411 | 33.3 | % | 1,512,966 | 25.3 | % | 2,839,862 | 445,636 | 27.1 | % | ||||||||||||||||||
Total operating expenses | 2,685,424 | 100 | % | 5,981,139 | 100.0 | % | 10,472,221 | 1,643,320 | 100.0 | % | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues | 6,777,922 | 100.0 | % | 11,998,976 | 100.0 | % | 19,383,684 | 3,041,722 | 100 | % | ||||||||||||||||||
Cost of revenues (1) | (5,587,673 | ) | (82.4 | )% | (9,158,800 | ) | (76.3 | )% | (15,340,537 | ) | (2,407,265 | ) | (79.1 | )% | ||||||||||||||
Gross profit | 1,190,249 | 17.6 | % | 2,840,176 | 23.7 | % | 4,043,147 | 634,457 | 20.9 | % | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses (1) | (1,198,516 | ) | (17.7 | )% | (3,492,091 | ) | (29.1 | )% | (5,794,853 | ) | (909,339 | ) | (29.9 | )% | ||||||||||||||
General and administrative expenses (1) | (592,497 | ) | (8.7 | )% | (976,082 | ) | (8.1 | )% | (1,837,506 | ) | (288,345 | ) | (9.5 | )% | ||||||||||||||
Research and development expenses (1) | (894,411 | ) | (13.2 | )% | (1,512,966 | ) | (12.6 | )% | (2,839,862 | ) | (445,636 | ) | (14.7 | )% | ||||||||||||||
Total operating expenses | (2,685,424 | ) | (39.6 | )% | (5,981,139 | ) | (49.8 | )% | (10,472,221 | ) | (1,643,320 | ) | (54.1 | )% | ||||||||||||||
Loss from operations | (1,495,175 | ) | (22.0 | )% | (3,140,963 | ) | (26.1 | )% | (6,429,074 | ) | (1,008,863 | ) | (33.2 | )% | ||||||||||||||
Other income/(expenses): | ||||||||||||||||||||||||||||
Investment income/(loss), net (including impairments) | 96,610 | 1.4 | % | 28,203 | 0.2 | % | (194,183 | ) | (30,472 | ) | (1.0 | )% | ||||||||||||||||
Interest income | 162,782 | 2.4 | % | 83,301 | 0.7 | % | 70,367 | 11,042 | 0.4 | % | ||||||||||||||||||
Interest expense | (46,543 | ) | (0.7 | )% | (108,547 | ) | (0.9 | )% | (155,467 | ) | (24,396 | ) | (0.8 | )% | ||||||||||||||
Exchange (losses)/gains | (11,789 | ) | (0.2 | )% | 41,717 | 0.3 | % | (15,504 | ) | (2,433 | ) | (0.1 | )% | |||||||||||||||
Others, net | 26,412 | 0.4 | % | 95,641 | 0.8 | % | 10,411 | 1,634 | 0.1 | % | ||||||||||||||||||
Loss before tax | (1,267,703 | ) | (18.7 | )% | (3,000,648 | ) | (25.0 | )% | (6,713,450 | ) | (1,053,488 | ) | (34.6 | )% | ||||||||||||||
Income tax | (35,867 | ) | (0.5 | )% | (53,369 | ) | (0.4 | )% | (95,289 | ) | (14,953 | ) | (0.5 | )% | ||||||||||||||
Net loss | (1,303,570 | ) | (19.2 | )% | (3,054,017 | ) | (25.4 | )% | (6,808,739 | ) | (1,068,441 | ) | (35.1 | )% | ||||||||||||||
(1) | Share-based compensation expenses were allocated as follows: |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues | 2,468,449 | 100.0 | % | 4,128,931 | 100.0 | % | 6,777,922 | 973,588 | 100.0 | % | ||||||||||||||||||
Cost of revenues (1) | (1,919,241 | ) | (77.8 | )% | (3,273,493 | ) | (79.3 | )% | (5,587,673 | ) | (802,619 | ) | (82.4 | )% | ||||||||||||||
Gross profit | 549,208 | 22.2 | % | 855,438 | 20.7 | % | 1,190,249 | 170,969 | 17.6 | % | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses (1) | (232,489 | ) | (9.4 | )% | (585,758 | ) | (14.2 | )% | (1,198,516 | ) | (172,156 | ) | (17.7 | )% | ||||||||||||||
General and administrative expenses (1) | (260,898 | ) | (10.6 | )% | (461,165 | ) | (11.2 | )% | (592,497 | ) | (85,107 | ) | (8.7 | )% | ||||||||||||||
Research and development expenses (1) | (280,093 | ) | (11.3 | )% | (537,488 | ) | (13.0 | )% | (894,411 | ) | (128,474 | ) | (13.2 | )% | ||||||||||||||
Total operating expenses | (773,480 | ) | (31.3 | )% | (1,584,411 | ) | (38.4 | )% | (2,685,424 | ) | (385,737 | ) | (39.6 | )% | ||||||||||||||
Loss from operations | (224,272 | ) | (9.1 | )% | (728,973 | ) | (17.7 | )% | (1,495,175 | ) | (214,768 | ) | (22.0 | )% | ||||||||||||||
Other income/(expenses): | ||||||||||||||||||||||||||||
Investment income, net (including impairments) | 22,957 | 0.9 | % | 96,440 | 2.3 | % | 96,610 | 13,877 | 1.4 | % | ||||||||||||||||||
Interest income | 1,483 | 0.1 | % | 68,706 | 1.7 | % | 162,782 | 23,382 | 2.4 | % | ||||||||||||||||||
Interest expense | — | — | — | — | (46,543 | ) | (6,685 | ) | (0.7 | )% | ||||||||||||||||||
Exchange gains/(losses) | 6,445 | 0.3 | % | (1,661 | ) | 0.0 | % | (11,789 | ) | (1,693 | ) | (0.2 | )% | |||||||||||||||
Others, net | 18,518 | 0.7 | % | 26,455 | 0.6 | % | 26,412 | 3,794 | 0.4 | % | ||||||||||||||||||
Loss before tax | (174,869 | ) | (7.1 | )% | (539,033 | ) | (13.1 | )% | (1,267,703 | ) | (182,093 | ) | (18.7 | )% | ||||||||||||||
Income tax | (8,881 | ) | (0.4 | )% | (25,988 | ) | (0.6 | )% | (35,867 | ) | (5,152 | ) | (0.5 | )% | ||||||||||||||
Net loss | (183,750 | ) | (7.5 | )% | (565,021 | ) | (13.7 | )% | (1,303,570 | ) | (187,245 | ) | (19.2 | )% | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of revenues | 23,281 | 37,087 | 76,232 | 11,962 | ||||||||||||
Sales and marketing expenses | 14,269 | 40,808 | 53,452 | 8,388 | ||||||||||||
General and administrative expenses | 68,497 | 181,753 | 553,526 | 86,860 | ||||||||||||
Research and development expenses | 66,503 | 126,250 | 316,607 | 49,683 | ||||||||||||
Total | 172,550 | 385,898 | 999,817 | 156,893 | ||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenues | 7,936 | 28,173 | 23,281 | 3,344 | ||||||||||||
Sales and marketing expenses | 3,423 | 11,499 | 14,269 | 2,050 | ||||||||||||
General and administrative expenses | 56,746 | 102,544 | 68,497 | 9,839 | ||||||||||||
Research and development expenses | 11,849 | 38,977 | 66,503 | 9,553 | ||||||||||||
Total | 79,954 | 181,193 | 172,550 | 24,786 | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
(in millions, except as otherwise indicated) | ||||||||||||
Average MAUs | 117.5 | 185.8 | 249.8 | |||||||||
Average monthly paying user | 7.2 | 14.8 | 22.4 | |||||||||
Paying ratio % (average monthly paying user / average MAUs) | 6.1 | % | 8.0 | % | 9.0 | % | ||||||
Average monthly revenue per MAU (1) | 4.8 | 5.4 | 6.5 | |||||||||
Average monthly revenue per paying user (2) | 60.7 | 48.7 | 44.6 |
(1) | Numerator is the total net revenues. |
(2) | Numerator includes only revenues from mobile games and VAS. |
B. | Liquidity and Capital Resources |
For the Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Selected Consolidated Cash Flows Data: | ||||||||||||||||
Net cash provided by / (used in) operating activities | 194,551 | 753,103 | (2,647,008 | ) | (415,372 | ) | ||||||||||
Net cash used in investing activities | (3,958,277 | ) | (8,906,821 | ) | (24,578,111 | ) | (3,856,842 | ) | ||||||||
Net cash provided by financing activities | 5,078,842 | 8,335,419 | 30,389,152 | 4,768,720 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | 107,513 | (466,252 | ) | (319,034 | ) | (50,063 | ) | |||||||||
Net increase in cash and cash equivalents | 1,422,629 | (284,551 | ) | 2,844,999 | 446,443 | |||||||||||
Cash and cash equivalents at beginning of the year | 3,540,031 | 4,962,660 | 4,678,109 | 734,097 | ||||||||||||
Cash and cash equivalents at end of the year | 4,962,660 | 4,678,109 | 7,523,108 | 1,180,540 | ||||||||||||
C. | Research and Development, Patents and Licenses, Etc. |
D. | Trend Information |
E. | Critical Accounting Estimates |
C. | Research and Development, Patents and Licenses, Etc. |
D. | Trend Information |
E. | Critical Accounting Estimates |
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Selected Consolidated Cash Flows Data: | ||||||||||||||||
Net cash provided by operating activities | 464,550 | 737,286 | 194,551 | 27,946 | ||||||||||||
Net cash used in investing activities | (716,254 | ) | (3,196,394 | ) | (3,958,277 | ) | (568,570 | ) | ||||||||
Net cash provided by financing activities | 675,533 | 4,974,810 | 5,078,842 | 729,530 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | (48,145 | ) | 261,447 | 107,513 | 15,442 | |||||||||||
Net increase in cash and cash equivalents and restricted cash | 375,684 | 2,777,149 | 1,422,629 | 204,348 | ||||||||||||
Cash and cash equivalents and restricted cash at beginning of the year | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||
Cash and cash equivalents and restricted cash at end of the year | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||
C. | Research and Development, Patents and Licenses, Etc. |
D. | Trend Information |
E. |
Payment due by December 31, | ||||||||||||||||||||||||
Total | 2020 | 2021 | 2022 | 2023 | After | |||||||||||||||||||
(in RMB thousands) | ||||||||||||||||||||||||
Operating lease commitments (1) | 312,249 | 93,741 | 100,109 | 89,399 | 28,643 | 357 | ||||||||||||||||||
Long-term debt obligations (2) | 3,799,847 | 47,961 | 47,961 | 47,961 | 47,961 | 3,608,003 | ||||||||||||||||||
Purchase obligation (3) | 800,000 | 320,000 | 240,000 | 240,000 | — | — | ||||||||||||||||||
Total | 4,912,096 | 461,702 | 388,070 | 377,360 | 76,604 | 3,608,360 | ||||||||||||||||||
Safe Harbor |
A. | Directors and Senior Management |
Directors and Executive Officers | Age | Position/Title | ||||
Rui Chen | Chairman of the Board of Directors and Chief Executive Officer | |||||
Yi Xu | 32 | Founder, Director and President |
Directors and Executive Officers | Age | Position/Title | ||||
Ni Li | Vice | |||||
JP Gan | Independent Director | |||||
B. | Compensation |
Name | Ordinary Shares Underlying Options Awarded | Exercise Price (US$/Share) | Date of Grant | Date of Expiration | ||||||||
Rui Chen | From nominal to | March 2020 | March 2027 | |||||||||
* | US$20.26 | November 2020 | November 2027 | |||||||||
Yi Xu | — | |||||||||||
Ni Li | * | Nominal | ||||||||||
Xin Fan | * | From nominal to US$20.26 | to March 2020 | Various dates from April to | ||||||||
Other grantees | 14,583,161 | From nominal to US$20.26 | to December 2021 | |||||||||
Total | ||||||||||||
* | Less than 1% of our total outstanding shares. |
C. | Board Practices |
Country of Principal Executive Offices: | People’s Republic of China | |
Foreign Private Issuer | Yes | |
Disclosure Prohibited Under Home Country Law | No | |
Total Number of Directors | 7 |
Female | Male | Non-Binary | Did Not Disclose Gender | |||||||||||||
Part I: Gender Identity | ||||||||||||||||
Directors | 1 | 6 | — | — | ||||||||||||
Part II: Demographic Background | ||||||||||||||||
Underrepresented Individual in Home Country Jurisdiction | — | |||||||||||||||
LGBTQ+ | — | |||||||||||||||
Did Not Disclose Demographic Background | 1 |
D. | Employees |
As of December 31, 2021 | |||||
Function: | |||||
Platform operations | |||||
Products and technology | |||||
Content operations | |||||
Content audit | |||||
Management, sales, finance and administration | |||||
Total | 12,281 | ||||
E. | Share Ownership |
Ordinary Shares Beneficially Owned | ||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Total Ordinary Shares | % of Beneficial Ownership | % of Aggregate Voting Power † | ||||||||||||||||
Directors and Executive Officers**: | ||||||||||||||||||||
Rui Chen (1) | 49,299,006 | 133,945 | 49,432,951 | 15.1 | % | 45.0 | %*** | |||||||||||||
Yi Xu (2) | 28,865,808 | 25,000 | 28,890,808 | 8.8 | % | 26.3 | %*** | |||||||||||||
Ni Li (3) | 7,200,000 | 800,000 | 8,000,000 | 2.4 | % | 6.6 | %*** | |||||||||||||
Wenji Jin (4) | — | * | * | * | * | |||||||||||||||
JP Gan (5) | — | * | * | * | * | |||||||||||||||
Eric He (6) | — | * | * | * | * | |||||||||||||||
Feng Li (7) | — | — | — | — | — | |||||||||||||||
Xin Fan | — | * | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group | 85,364,814 | 2,537,445 | 87,902,259 | 26.7 | % | 78.0 | % | |||||||||||||
Principal Shareholders: | ||||||||||||||||||||
Entities affiliated with Rui Chen (8) | 49,299,006 | 133,945 | 49,432,951 | 15.1 | % | 45.0 | % | |||||||||||||
Tencent entities (9) | — | 43,749,518 | 43,749,518 | 13.3 | % | 4.0 | % | |||||||||||||
Kami Sama Limited (10) | 28,865,808 | — | 28,865,808 | 8.8 | % | 26.3 | % | |||||||||||||
Taobao China Holding Limited (11) | — | 23,645,657 | 23,645,657 | 7.2 | % | 2.2 | % | |||||||||||||
Loyal Valley Capital (12) | — | 19,353,524 | 19,353,524 | 5.9 | % | 1.8 | % |
Ordinary Shares Beneficially Owned | ||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Total Ordinary Shares | % of Beneficial Ownership | % of Aggregate Voting Power† | ||||||||||||||||
Directors and Executive Officers**: | ||||||||||||||||||||
Rui Chen (1) | 49,299,006 | 1,101,000 | 50,400,006 | 12.9 | % | 43.1 | % | |||||||||||||
Yi Xu (2) | 27,216,108 | 196,100 | 27,412,208 | 7.0 | % | 23.8 | % | |||||||||||||
Ni Li (3) | 7,200,000 | 1,242,300 | 8,442,300 | 2.2 | % | 6.4 | % | |||||||||||||
JP Gan (4) | — | * | * | * | * | |||||||||||||||
Eric He (5) | — | * | * | * | * | |||||||||||||||
Feng Li (6) | — | — | — | — | — | |||||||||||||||
Guoqi Ding (7) | — | — | — | — | — | |||||||||||||||
Xin Fan | — | * | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group | 83,715,114 | 3,394,100 | 87,109,214 | 22.2 | % | 73.3 | % | |||||||||||||
Principal Shareholders: | ||||||||||||||||||||
Entities affiliated with Rui Chen (8) | 49,299,006 | — | 49,299,006 | 12.6 | % | 43.1 | % | |||||||||||||
Tencent entities (9) | — | 43,749,518 | 43,749,518 | 11.2 | % | 3.8 | % | |||||||||||||
Entity affiliated with Yi Xu (10) | 27,216,108 | 151,100 | 27,367,208 | 7.0 | % | 23.8 | % | |||||||||||||
Taobao China Holding Limited (11) | — | 30,845,657 | 30,845,657 | 7.9 | % | 2.7 | % |
† | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class Y and Class Z ordinary shares as a single class. Each holder of Class Z ordinary shares is entitled to one vote per share and each holder of our Class Y ordinary shares is entitled to ten votes per share on all matters submitted to them for a vote. Our Class Y ordinary shares and Class Z ordinary shares vote together as a single class on all matters submitted to a vote of our shareholders, except as may otherwise be required by law. Our Class Y ordinary shares are convertible at any time by the holder thereof into Class Z ordinary shares on a one-for-one |
* | Less than 1% of our total outstanding shares. |
** | Except as otherwise indicated below, the business address of our directors and executive officers is c/o Shanghai Hode Information Technology Co., Ltd., Building 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai, People’s Republic of China. |
(1) | Represents (i) 49,299,006 Class Y ordinary shares directly held by Vanship Limited, a business company limited by shares incorporated in British Virgin Islands, and (ii) |
(2) | Represents (i) |
(3) | Represents (i) 7,200,000 Class Y ordinary shares and |
(4) |
The business address of Mr. JP Gan is Suite 909, Bank of America Tower, 12 Harcourt Road, Central, Hong Kong. |
The business address of Mr. Eric He is 2F-1, No. 495, Guangfu S. Road, Xinyi District, Taipei |
The business address of Mr. Feng Li is Room 701, Tower 1, Liangmaqiao Diplomatic Office Building, No 19 Dongfangdong Road, Chaoyang District, Beijing, People’s Republic of China. |
(7) | The business address of Mr. Guoqi Ding is 1500 Changyi Road, Building 1, Room 902, Pudong New Area, Shanghai, People’s Republic of China. |
(8) | Represents |
(9) | Represents (i) 10,954,357 Class Z ordinary shares directly held by OPH B Limited, a company limited by shares incorporated in British Virgin Islands, and (ii) 32,795,161 Class Z ordinary shares directly held by Tencent Mobility Limited, a limited company incorporated in Hong Kong, based on the Schedule 13G/A filed on February 10, 2020. OPH B Limited and Tencent Mobility Limited are investing entities ultimately controlled by Tencent Holdings Limited, and are collectively referred to as Tencent entities. The registered address of OPH B Limited is P.O. Box 957, Offshore Incorporations |
(10) | Represents |
(11) | Represents |
A. | Major Shareholders |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
A. | Consolidated Statements and Other Financial Information |
B. | Significant Changes |
A. | Offering and Listing Details |
B. | Plan of Distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of the Issue |
A. | Share Capital |
B. | Memorandum and Articles of Association |
C. | Material Contracts |
D. | Exchange Controls |
E. | Taxation |
F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
A. | Debt Securities |
B. | Warrants and Rights |
C. | Other Securities |
D. | American Depositary Shares |
Service | Fees | |
Up to US$0.05 per ADS issued | ||
Up to US$0.05 per ADS cancelled | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary bank |
For the Year Ended December 31, | ||||||||
2018 | 2019 | |||||||
(RMB in thousands) | ||||||||
Audit fees (1) | 7,450 | 9,128 | ||||||
Audit-related fees (2) | — | 3,650 | ||||||
Tax fees (3) | 1,090 | 1,050 | ||||||
Other fees (4) | 180 | 150 |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
(RMB in thousands) | ||||||||||||
Audit fees (1) | 9,128 | 9,128 | 23,025 | |||||||||
Audit-related fees (2) | 3,650 | 1,500 | 2,000 | |||||||||
Tax fees (3) | 1,050 | 385 | 2,436 | |||||||||
Other fees (4) | 150 | 150 | 174 |
(1) | “Audit fees” means the aggregate fees incurred for each of the fiscal years listed for professional services rendered by our principal auditors for the audit or review of our annual financial statements or quarterly financial information and review of documents filed with the SEC. In |
(2) | “Audit-related fees” means the aggregate fees incurred for the issuance of comfort letters in connection with the offering of the |
(3) | “Tax fees” means the aggregate fees incurred in each of the fiscal years listed for the professional tax services rendered by our principal auditors. |
(4) | “Other fees” means the aggregate fees incurred in each of the fiscal years listed for services rendered by our principal auditors other than services reported under “Audit fees,” “Audit-related fees” and “Tax |
Exhibit Number | Description of Document | |||
4.4 | Form of Employment Agreement between the Registrant and its executive officers (incorporated herein by reference to Exhibit 10.4 to the Form F-1, as amended, initially filed on March 2, 2018 (File No.333-223405)) | |||
4.5* | ||||
Number | ||||
4.6* | ||||
4.7* | ||||
4.8* | ||||
4.9* | English translation of the Letter of Undertakings granted by spouses of the shareholders of | |||
4.10 | ||||
4.11 | ||||
8.1* | ||||
11.1* | ||||
12.1* | ||||
12.2* | ||||
13.1** | ||||
13.2** | ||||
15.1* | ||||
15.2* | Consent of Tian Yuan Law Firm | |||
15.3* | ||||
101.INS** | ||||
Inline XBRL Instance Document—this instance document does not appear in the Interactive Data File because its XBRL tags are | ||||
101.SCH** | ||||
Inline XBRL Taxonomy Extension Scheme Document | ||||
101.CAL** | ||||
Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF** | ||||
Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB** | ||||
Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE** | ||||
Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | ||||
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* | Filed with this Annual Report on Form 20-F. |
** | Furnished with this Annual Report on Form 20-F. |
Bilibili Inc. |
By: | /s/ Rui Chen | ||
Name: | Rui Chen | ||
Title: | Chairman of the Board of Directors and | ||
Chief Executive Officer |
December 31, 2020 | December 31, 2021 | December 31, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
Note 2(e) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 4,678,109 | 7,523,108 | 1,180,540 | |||||||||
Time deposits | 4,720,089 | 7,632,334 | 1,197,680 | |||||||||
Accounts receivable, net | 1,053,641 | 1,382,328 | 216,917 | |||||||||
Amount due from related parties | 164,732 | 2,041,316 | 320,327 | |||||||||
Prepayments and other current assets | 1,765,787 | 2,807,048 | 440,487 | |||||||||
Short-term investments | 3,357,189 | 15,060,722 | 2,363,356 | |||||||||
Total current assets | 15,739,547 | 36,446,856 | 5,719,307 | |||||||||
Non-current assets: | ||||||||||||
Property and equipment, net | 761,941 | 1,350,256 | 211,885 | |||||||||
Production cost, net | 667,876 | 1,083,772 | 170,067 | |||||||||
Intangible assets, net | 2,356,959 | 3,835,600 | 601,889 | |||||||||
Deferred tax assets | 20,918 | 36,355 | 5,705 | |||||||||
Goodwill | 1,295,786 | 2,338,303 | 366,931 | |||||||||
Long-term investments, net | 2,232,938 | 5,502,524 | 863,466 | |||||||||
Other long-term assets | 789,643 | 1,459,485 | 229,025 | |||||||||
Total non-current assets | 8,126,061 | 15,606,295 | 2,448,968 | |||||||||
Total assets | 23,865,608 | 52,053,151 | 8,168,275 | |||||||||
Liabilities | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | 3,074,298 | 4,360,906 | 684,321 | |||||||||
Salary and welfare payable | 734,376 | 995,451 | 156,208 | |||||||||
Taxes payable | 127,192 | 203,770 | 31,976 | |||||||||
Short-term loans | 100,000 | 1,232,106 | 193,344 | |||||||||
Deferred revenue | 2,118,006 | 2,645,389 | 415,119 | |||||||||
Accrued liabilities and other payables | 1,237,676 | 2,416,955 | 379,273 | |||||||||
Amount due to related parties | — | 216,434 | 33,963 | |||||||||
Total current liabilities | 7,391,548 | 12,071,011 | 1,894,204 | |||||||||
Non-current liabilities: | ||||||||||||
Long-term debt | 8,340,922 | 17,784,092 | 2,790,712 | |||||||||
Other long-term liabilities | 350,934 | 481,982 | 75,634 | |||||||||
Total non-current liabilities | 8,691,856 | 18,266,074 | 2,866,346 | |||||||||
Total liabilities | 16,083,404 | 30,337,085 | 4,760,550 | |||||||||
Commitments and contingencies | 0 | 0 | 0 |
December 31, 2018 | December 31, 2019 | December 31, 2019 | ||||||||||
RMB | RMB | US$ | ||||||||||
Note 2(e) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 3,540,031 | 4,962,660 | 712,842 | |||||||||
Time deposits | 749,385 | 1,844,558 | 264,954 | |||||||||
Accounts receivable, net | 324,392 | 744,845 | 106,990 | |||||||||
Receivables due from related parties | — | 195,290 | 28,052 | |||||||||
Prepayments and other current assets | 990,851 | 1,315,901 | 189,017 | |||||||||
Short-term investments | 945,338 | 1,260,810 | 181,104 | |||||||||
Total current assets | 6,549,997 | 10,324,064 | 1,482,959 | |||||||||
Non-current assets: | ||||||||||||
Property and equipment, net | 394,898 | 516,087 | 74,131 | |||||||||
Production cost, net | 204,231 | 443,533 | 63,710 | |||||||||
Intangible assets, net | 1,419,435 | 1,657,333 | 238,061 | |||||||||
Deferred tax assets | — | 10,479 | 1,505 | |||||||||
Goodwill | 941,488 | 1,012,026 | 145,368 | |||||||||
Long-term investments, net | 979,987 | 1,251,129 | 179,713 | |||||||||
Other long-term assets | — | 301,916 | 43,368 | |||||||||
Total non-current assets | 3,940,039 | 5,192,503 | 745,856 | |||||||||
Total assets | 10,490,036 | 15,516,567 | 2,228,815 | |||||||||
Liabilities | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB1,078.1 million and RMB1,454.9 million as of December 31, 2018 and 2019, respectively) | 1,307,598 | 1,904,042 | 273,499 | |||||||||
Salary and welfare payable | 246,815 | 355,936 | 51,127 | |||||||||
Taxes payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB27.2 million and RMB33.6 million as of December 31, 2018 and 2019, respectively) | 38,505 | 67,856 | 9,747 | |||||||||
Deferred revenue (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB937.1 million and RMB1,234.5 million as of December 31, 2018 and 2019, respectively) | 985,143 | 1,369,000 | 196,645 | |||||||||
Accrued liabilities and other payables (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB318.6 million and RMB222.1 million as of December 31, 2018 and 2019, respectively) | 670,442 | 575,763 | 82,702 | |||||||||
Amount due to related parties (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB23.1 million and NaN as of December 31, 2018 and 2019, respectively) | 50,331 | — | — | |||||||||
Total current liabilities | 3,298,834 | 4,272,597 | 613,720 | |||||||||
Non-current liabilities: | ||||||||||||
Long-term debt | — | 3,414,628 | 490,481 | |||||||||
Other long-term liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiary of NaN and RMB23.1 million as of December 31, 2018 and 2019, respectively) | — | 192,882 | 27,704 | |||||||||
Total non- current liabilities | — | 3,607,510 | 518,185 | |||||||||
Total liabilities | 3,298,834 | 7,880,107 | 1,131,905 | |||||||||
Commitments and contingencies 1 ) |
December 31, 2020 | December 31, 2021 | December 31, 2021 | ||||||||||
RMB | RMB | US$ | ||||||||||
Note 2(e) | ||||||||||||
Shareholders’ equity | ||||||||||||
Ordinary shares: | ||||||||||||
Class Y Ordinary Shares (US$0.0001 par value; 100,000,000 shares authorized, 83,715,114 shares issued and outstanding as of December 31, 2020; US$0.0001 par value; 100,000,000 shares authorized, 83,715,114 shares issued and outstanding as of December 31, 2021) | 52 | 52 | 8 | |||||||||
Class Z Ordinary Shares (US$0.0001 par value; 9,800,000,000 shares authorized, 271,507,165 shares issued, 268,204,838 shares outstanding as of December 31, 2020; 9,800,000,000 shares authorized, 309,656,738 shares issued, 306,889,473 shares outstanding as of December 31, 2021) | 172 | 199 | 31 | |||||||||
Additional paid-in capital | 14,616,302 | 35,929,961 | 5,638,195 | |||||||||
Statutory reserves | 17,884 | 24,621 | 3,864 | |||||||||
Accumulated other comprehensive income/(loss) | 141,129 | (279,862 | ) | (43,916 | ) | |||||||
Accumulated deficit | (7,175,339 | ) | (13,971,304 | ) | (2,192,403 | ) | ||||||
Total Bilibili Inc.’s shareholders’ equity | 7,600,200 | 21,703,667 | 3,405,779 | |||||||||
Noncontrolling interests | 182,004 | 12,399 | 1,946 | |||||||||
Total shareholders’ equity | 7,782,204 | 21,716,066 | 3,407,725 | |||||||||
Total liabilities and shareholders’ equity | 23,865,608 | 52,053,151 | 8,168,275 | |||||||||
December 31, 2018 | December 31, 2019 | December 31, 2019 | ||||||||||
RMB | RMB | US$ | ||||||||||
Note 2(e) | ||||||||||||
Shareholders’ equity | ||||||||||||
Ordinary shares: | ||||||||||||
Class Y Ordinary Shares (US$0.0001 par value; 100,000,000 shares authorized, 85,364,814 shares issued and outstanding as of December 31, 2018 and 2019) | 53 | 53 | 8 | |||||||||
Class , 226,323,075 shares outstanding as of December 31, 2018; 9,800,000,000 shares authorized, 247,230,234 shares issued, 242,751,341 shares outstanding as of December 31, 2019) | 144 | 155 | 22 | |||||||||
Additional paid-in capital | 9,459,546 | 10,718,190 | 1,539,572 | |||||||||
Statutory reserves | 7,666 | 13,463 | 1,934 | |||||||||
Accumulated other comprehensive income | 326,077 | 466,229 | 66,970 | |||||||||
Accumulated deficit | (2,842,690 | ) | (4,145,606 | ) | (595,479 | ) | ||||||
Total Bilibili Inc.’s shareholders’ equity | 6,950,796 | 7,052,484 | 1,013,027 | |||||||||
Noncontrolling interests | 240,406 | 583,976 | 83,883 | |||||||||
Total shareholders’ equity | 7,191,202 | 7,636,460 | 1,096,910 | |||||||||
Total liabilities and shareholders’ equity | 10,490,036 | 15,516,567 | 2,228,815 | |||||||||
For the Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Net revenues | 6,777,922 | 11,998,976 | 19,383,684 | 3,041,722 | ||||||||||||
Cost of revenues | (5,587,673 | ) | (9,158,800 | ) | (15,340,537 | ) | (2,407,265 | ) | ||||||||
Gross profit | 1,190,249 | 2,840,176 | 4,043,147 | 634,457 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | (1,198,516 | ) | (3,492,091 | ) | (5,794,853 | ) | (909,339 | ) | ||||||||
General and administrative expenses | (592,497 | ) | (976,082 | ) | (1,837,506 | ) | (288,345 | ) | ||||||||
Research and development expenses | (894,411 | ) | (1,512,966 | ) | (2,839,862 | ) | (445,636 | ) | ||||||||
Total operating expenses | (2,685,424 | ) | (5,981,139 | ) | (10,472,221 | ) | (1,643,320 | ) | ||||||||
Loss from operations | (1,495,175 | ) | (3,140,963 | ) | (6,429,074 | ) | (1,008,863 | ) | ||||||||
Other income/(expense): | ||||||||||||||||
Investment income/(loss), net (including impairments) | 96,610 | 28,203 | (194,183 | ) | (30,472 | ) | ||||||||||
Interest income | 162,782 | 83,301 | 70,367 | 11,042 | ||||||||||||
Interest expense | (46,543 | ) | (108,547 | ) | (155,467 | ) | (24,396 | ) | ||||||||
Exchange (losses)/gains | (11,789 | ) | 41,717 | (15,504 | ) | (2,433 | ) | |||||||||
Others, net | 26,412 | 95,641 | 10,411 | 1,634 | ||||||||||||
Total other income/(expense), net | 227,472 | 140,315 | (284,376 | ) | (44,625 | ) | ||||||||||
Loss before tax | (1,267,703 | ) | (3,000,648 | ) | (6,713,450 | ) | (1,053,488 | ) | ||||||||
Income tax | (35,867 | ) | (53,369 | ) | (95,289 | ) | (14,953 | ) | ||||||||
Net loss | (1,303,570 | ) | (3,054,017 | ) | (6,808,739 | ) | (1,068,441 | ) | ||||||||
Accretion to redeemable noncontrolling interests | — | (4,292 | ) | — | — | |||||||||||
Net loss attributable to noncontrolling interests | 14,597 | 46,605 | 19,511 | 3,062 | ||||||||||||
Net loss attributable to the Bilibili Inc.’s shareholders | (1,288,973 | ) | (3,011,704 | ) | (6,789,228 | ) | (1,065,379 | ) | ||||||||
Net loss | (1,303,570 | ) | (3,054,017 | ) | (6,808,739 | ) | (1,068,441 | ) | ||||||||
Other comprehensive income/(loss): | ||||||||||||||||
Foreign currency translation adjustments | 140,152 | (325,100 | ) | (420,991 | ) | (66,063 | ) | |||||||||
Total other comprehensive income/(loss) | 140,152 | (325,100 | ) | (420,991 | ) | (66,063 | ) | |||||||||
Total comprehensive loss | (1,163,418 | ) | (3,379,117 | ) | (7,229,730 | ) | (1,134,504 | ) | ||||||||
Accretion to redeemable noncontrolling interests | — | (4,292 | ) | — | — | |||||||||||
Net loss attributable to noncontrolling interests | 14,597 | 46,605 | 19,511 | 3,062 | ||||||||||||
Comprehensive loss attributable to the Bilibili Inc.’s shareholders | (1,148,821 | ) | (3,336,804 | ) | (7,210,219 | ) | (1,131,442 | ) | ||||||||
Net loss per share, basic | (3.99 | ) | (8.71 | ) | (17.87 | ) | (2.80 | ) | ||||||||
Net loss per share, diluted | (3.99 | ) | (8.71 | ) | (17.87 | ) | (2.80 | ) | ||||||||
Net loss per ADS, basic | (3.99 | ) | (8.71 | ) | (17.87 | ) | (2.80 | ) | ||||||||
Net loss per ADS, diluted | (3.99 | ) | (8.71 | ) | (17.87 | ) | (2.80 | ) | ||||||||
Weighted average number of ordinary shares, basic | 323,161,680 | 345,816,023 | 379,898,121 | 379,898,121 | ||||||||||||
Weighted average number of ordinary shares, diluted | 323,161,680 | 345,816,023 | 379,898,121 | 379,898,121 | ||||||||||||
Weighted average number of ADS, basic | 323,161,680 | 345,816,023 | 379,898,121 | 379,898,121 | ||||||||||||
Weighted average number of ADS, diluted | 323,161,680 | 345,816,023 | 379,898,121 | 379,898,121 | ||||||||||||
Share-based compensation expenses included in | ||||||||||||||||
Cost of revenues | 23,281 | 37,087 | 76,232 | 11,962 | ||||||||||||
Sales and marketing expenses | 14,269 | 40,808 | 53,452 | 8,388 | ||||||||||||
General and administrative expenses | 68,497 | 181,753 | 553,526 | 86,860 | ||||||||||||
Research and development expenses | 66,503 | 126,250 | 316,607 | 49,683 |
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Net revenues | 2,468,449 | 4,128,931 | 6,777,922 | 973,588 | ||||||||||||
Cost of revenues | (1,919,241 | ) | (3,273,493 | ) | (5,587,673 | ) | (802,619 | ) | ||||||||
Gross profit | 549,208 | 855,438 | 1,190,249 | 170,969 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | (232,489 | ) | (585,758 | ) | (1,198,516 | ) | (172,156 | ) | ||||||||
General and administrative expenses | (260,898 | ) | (461,165 | ) | (592,497 | ) | (85,107 | ) | ||||||||
Research and development expenses | (280,093 | ) | (537,488 | ) | (894,411 | ) | (128,474 | ) | ||||||||
Total operating expenses | (773,480 | ) | (1,584,411 | ) | (2,685,424 | ) | (385,737 | ) | ||||||||
Loss from operations | (224,272 | ) | (728,973 | ) | (1,495,175 | ) | (214,768 | ) | ||||||||
Other income/(expenses): | ||||||||||||||||
Investment income, net (including impairments) | 22,957 | 96,440 | 96,610 | 13,877 | ||||||||||||
Interest income | 1,483 | 68,706 | 162,782 | 23,382 | ||||||||||||
Interest expen se | — | — | (46,543 | ) | (6,685 | ) | ||||||||||
Exchange gains/(losses) | 6,445 | (1,661 | ) | (11,789 | ) | (1,693 | ) | |||||||||
Others, net | 18,518 | 26,455 | 26,412 | 3,794 | ||||||||||||
Loss before tax | (174,869 | ) | (539,033 | ) | (1,267,703 | ) | (182,093 | ) | ||||||||
Income tax | (8,881 | ) | (25,988 | ) | (35,867 | ) | (5,152 | ) | ||||||||
Net loss | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (258,554 | ) | (64,605 | ) | — | — | ||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | (129,244 | ) | — | — | — | |||||||||||
Net loss attributable to noncontrolling interests | — | 13,301 | 14,597 | 2,097 | ||||||||||||
Net loss attributable to the Bilibili Inc.’s shareholders | (571,548 | ) | (616,325 | ) | (1,288,973 | ) | (185,148 | ) | ||||||||
Net loss | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||
Other comprehensive (loss)/income: | ||||||||||||||||
Foreign currency translation adjustments | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||
Total other comprehensive (loss)/income | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||
Total comprehensive loss | (259,445 | ) | (268,991 | ) | (1,163,418 | ) | (167,113 | ) | ||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (258,554 | ) | (64,605 | ) | — | — | ||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | (129,244 | ) | — | — | — | |||||||||||
Net loss attributable to noncontrolling interests | — | 13,301 | 14,597 | 2,097 | ||||||||||||
Comprehensive loss attributable to the Bilibili Inc.’s shareholders | (647,243 | ) | (320,295 | ) | (1,148,821 | ) | (165,016 | ) | ||||||||
Net loss per share, basic | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||
Net loss per share, diluted | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||
Net loss per ADS, basic | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||
Net loss per ADS, diluted | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||
Weighted average number of ordinary shares, basic | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Weighted average number of ordinary shares, diluted | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Weighted average number of ADS, basic | — | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Weighted average number of ADS, diluted | — | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Share-based compensation expenses included in | ||||||||||||||||
Cost of revenues | 7,936 | 28,173 | 23,281 | 3,344 | ||||||||||||
S a les and marketing expenses | 3,423 | 11,499 | 14,269 | 2,050 | ||||||||||||
General and administrative expenses | 56,746 | 102,544 | 68,497 | 9,839 | ||||||||||||
Research and development expenses | 11,849 | 38,977 | 66,503 | 9,553 |
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Noncontrolling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 85,364,814 | 53 | 226,323,075 | 144 | 9,459,546 | 7,666 | 326,077 | (2,842,690 | ) | 240,406 | 7,191,202 | |||||||||||||||||||||||||||||
Net los s | — | — | — | — | — | — | — | (1,288,973 | ) | (14,597 | ) | (1,303,570 | ) | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 172,550 | — | — | — | — | 172,550 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares, net of issuance costs of US$9,376 | — | — | 14,173,813 | 10 | 1,647,701 | — | — | — | — | 1,647,711 | ||||||||||||||||||||||||||||||
Acquisition of a subsidiary | — | — | — | — | — | — | — | — | 30,000 | 30,000 | ||||||||||||||||||||||||||||||
Consolidation of an entity under common control | — | — | — | — | (488,463 | ) | — | — | (8,146 | ) | 426,448 | (70,161 | ) | |||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | (73,144 | ) | — | — | — | (102,480 | ) | (175,624 | ) | |||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 2,254,453 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||
Deconsolidation of a subsidiary | — | — | — | — | — | — | — | — | 4,199 | 4,199 | ||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | 5,797 | — | (5,797 | ) | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 140,152 | — | — | 140,152 | ||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 85,364,814 | 53 | 242,751,341 | 155 | 10,718,190 | 13,463 | 466,229 | (4,145,606 | ) | 583,976 | 7,636,460 | |||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Noncontrolling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 85,364,814 | 53 | 242,751,341 | 155 | 10,718,190 | 13,463 | 466,229 | (4,145,606 | ) | 583,976 | 7,636,460 | |||||||||||||||||||||||||||||
Net los s | — | — | — | — | — | — | — | (3,007,412 | ) | (46,605 | ) | (3,054,017 | ) | |||||||||||||||||||||||||||
Impact of adoption of credit loss guidance | — | — | — | — | — | — | — | (17,900 | ) | — | (17,900 | ) | ||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 385,898 | — | — | — | — | 385,898 | ||||||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 4,491,566 | 3 | — | — | — | — | — | 3 | ||||||||||||||||||||||||||||||
Issuance ordinary shares related to long-term investment | — | — | — | — | 277,467 | — | — | — | — | 277,467 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares, net of issuance costs of US$563 | — | — | 17,310,696 | 12 | 2,817,446 | — | — | — | — | 2,817,458 | ||||||||||||||||||||||||||||||
Shares redesignation | (1,649,700 | ) | (1 | ) | 1,649,700 | 1 | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Accretion to redeemable noncontrolling interests | — | — | — | — | (4,292 | ) | — | — | — | (1,672 | ) | (5,964 | ) | |||||||||||||||||||||||||||
Capital injection in subsidiaries by noncontrolling interests | — | — | — | — | — | — | — | — | 21,463 | 21,463 | ||||||||||||||||||||||||||||||
Acquisition of subsidiaries | — | — | 270,435 | * | 120,865 | — | — | — | 41,627 | 162,492 | ||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | 1,731,100 | 1 | 300,728 | — | — | — | (416,785 | ) | (116,056 | ) | ||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | 4,421 | — | (4,421 | ) | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (325,100 | ) | — | — | (325,100 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2020 | 83,715,114 | 52 | 268,204,838 | 172 | 14,616,302 | 17,884 | 141,129 | (7,175,339 | ) | 182,004 | 7,782,204 | |||||||||||||||||||||||||||||
* | Less than 1. |
Ordinary shares | Other permanent equities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Pre-IPO Class AOrdinary Shares | Pre-IPO Class BOrdinary Shares | Pre-IPO Class COrdinary Shares | Pre-IPO Class DOrdinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Non contr olling interests | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | — | — | — | — | 71,136,926 | 46 | 13,600,000 | 16,356 | 8,500,000 | 16,944 | 2,132,353 | 6,911 | 307,036 | 1,595 | 105,742 | (1,777,990 | ) | 357 | (1,323,003 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (183,750 | ) | — | (183,750 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | 69,480 | — | — | — | — | 69,480 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Pre-IPO Class A Ordinary Shares | — | — | — | — | (1,154,643 | ) | (1 | ) | — | — | — | — | — | — | (49,085 | ) | — | — | — | — | (49,086 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Class A Ordinary Shares to Pre-IPO Series D1 Preferred Shares | — | — | — | — | (645,357 | ) | — | — | — | — | — | — | — | (17,003 | ) | — | — | — | — | (17,003 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Series C Preferred Shares to Pre-IPO Series D1 Preferred Shares | — | — | — | — | — | — | — | — | — | — | — | — | (129,244 | ) | — | — | — | — | (129,244 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-IPO Preferred Shares redemption value accretion | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (258,554 | ) | — | (258,554 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | (2,332 | ) | — | — | — | (357 | ) | (2,689 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Spin-off transactions | — | — | — | — | — | — | — | — | — | — | — | — | 30,032 | — | — | — | — | 30,032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,480 | — | (2,480 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (75,695 | ) | — | — | (75,695 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | — | — | — | — | 69,336,926 | 45 | 13,600,000 | 16,356 | 8,500,000 | 16,944 | 2,132,353 | 6,911 | 208,884 | 4,075 | 30,047 | (2,222,774 | ) | — | (1,939,512 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income/(loss) | Accumulated deficit | Noncontrolling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 83,715,114 | 52 | 268,204,838 | 172 | 14,616,302 | 17,884 | 141,129 | (7,175,339 | ) | 182,004 | 7,782,204 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (6,789,228 | ) | (19,511 | ) | (6,808,739 | ) | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 999,817 | — | — | — | — | 999,817 | ||||||||||||||||||||||||||||||
Share issuan exercise ofce from share options | — | — | 3,262,562 | 3 | — | — | — | — | — | 3 | ||||||||||||||||||||||||||||||
Share issuance upon secondary public offering (“HK IPO”), net of issuance costs of HK 337,143D | — | — | 28,750,000 | 18 | 19,266,792 | — | — | — | — | 19,266,810 | ||||||||||||||||||||||||||||||
Acqu ofi si tion subsidiaries | — | — | 2,056,825 | 1 | 632,747 | — | — | — | (14,749 | ) | 617,999 | |||||||||||||||||||||||||||||
Issuance of Class Z ordinary shares related to long-term investment s | — | — | 1,045,700 | 1 | (1 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||
Share issuance upon the conversion of convertible senior notes | — | — | 2,854,277 | 3 | 449,908 | — | — | — | — | 449,911 | ||||||||||||||||||||||||||||||
Capital injection in subsidiaries by noncontrolling interests | — | — | — | — | — | — | — | — | 2,187 | 2,187 | ||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | 6,737 | — | (6,737 | ) | — | — | |||||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | 715,271 | 1 | (35,604 | ) | — | — | — | (137,532 | ) | (173,135 | ) | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (420,991 | ) | — | — | (420,991 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2021 | 83,715,114 | 52 | 306,889,473 | 199 | 35,929,961 | 24,621 | (279,862 | ) | (13,971,304 | ) | 12,399 | 21,716,066 | ||||||||||||||||||||||||||||
Ordinary shares | Other permanent equities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Pre-IPO Class AOrdinary Shares | Pre-IPO Class BOrdinary Shares | Pre-IPO Class COrdinary Shares | Pre-IPO Class DOrdinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Non contr olling interests | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31 , 2017 | — | — | — | — | 69,336,926 | 45 | 13,600,000 | 16,356 | 8,500,000 | 16,944 | 2,132,353 | 6,911 | 208,884 | 4,075 | 30,047 | (2,222,774 | ) | — | (1,939,512 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (551,720 | ) | (13,301 | ) | (565,021 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | 178,343 | — | — | — | 2,850 | 181,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance upon initial public offering and followed offering, net of issuance costs of US$6,333 | — | — | 67,063,451 | 43 | — | — | — | — | — | — | — | — | 4,952,563 | — | — | — | — | 4,952,606 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Ordinary Shares into Class Y and Class Z Ordinary Shares upon initial public offering | 84,260,279 | 52 | 9,309,000 | 6 | (69,336,926 | ) | (45 | ) | (13,600,000 | ) | (16,356 | ) | (8,500,000 | ) | (16,944 | ) | (2,132,353 | ) | (6,911 | ) | 40,198 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Preferred Shares into Class Y and Class Z Ordinary Shares upon initial public offering | 1,104,535 | 1 | 141,808,970 | 89 | — | — | — | — | — | — | — | — | 4,079,558 | — | — | — | — | 4,079,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-IPO Preferred Shares redemption value accretion | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (64,605 | ) | — | (64,605 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital injection in subsidiaries by noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 22,198 | 22,198 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of subsidiaries | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 228,659 | 228,659 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 8,141,654 | 6 | — | — | — | — | — | — | — | — | — | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,591 | — | (3,591 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 296,030 | — | — | 296,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31 , 2018 | 85,364,814 | 53 | 226,323,075 | 144 | — | — | — | — | — | — | — | — | 9,459,546 | 7,666 | 326,077 | (2,842,690 | ) | 240,406 | 7,191,202 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Noncontrolling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 85,364,814 | 53 | 226,323,075 | 144 | 9,459,546 | 7,666 | 326,077 | (2,842,690 | ) | 240,406 | 7,191,202 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (1,288,973 | ) | (14,597 | ) | (1,303,570 | ) | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 172,550 | — | — | — | — | 172,550 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares, net of issuance costs of US$9,376 | — | — | 14,173,813 | 10 | 1,647,701 | — | — | — | — | 1,647,711 | ||||||||||||||||||||||||||||||
Acquisition of a subsidiary | — | — | — | — | — | — | — | — | 30,000 | 30,000 | ||||||||||||||||||||||||||||||
Consolidation of an entity under common control (Note 26) | — | — | — | — | (488,463 | ) | — | — | (8,146 | ) | 426,448 | (70,161 | ) | |||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | (73,144 | ) | — | — | — | (102,480 | ) | (175,624 | ) | |||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 2,254,453 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||
Deconsolidation of a subsidiary | — | — | — | — | — | — | — | — | 4,199 | 4,199 | ||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | 5,797 | — | (5,797 | ) | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 140,152 | — | — | 140,152 | ||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 85,364,814 | 53 | 242,751,341 | 155 | 10,718,190 | 13,463 | 466,229 | (4,145,606 | ) | 583,976 | 7,636,460 | |||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation of property and equipment | 38,356 | 99,714 | 191,784 | 27,548 | ||||||||||||
Amortization of intangible assets | 266,042 | 542,731 | 905,613 | 130,083 | ||||||||||||
Amortization of the right-of-use assets | — | — | 70,712 | 10,157 | ||||||||||||
Amortization of debt issuance costs | — | — | 9,117 | 1,310 | ||||||||||||
Share-based compensation expenses | 79,954 | 181,193 | 172,550 | 24,786 | ||||||||||||
Allowance for doubtful accounts | 2,716 | 10,904 | 9,396 | 1,350 | ||||||||||||
Inventory provision | — | — | 5,987 | 860 | ||||||||||||
Deferred income taxes | — | — | (10,479 | ) | (1,505 | ) | ||||||||||
Unrealized exchange (gains)/losses | (115 | ) | 497 | 2,636 | 379 | |||||||||||
Unrealized f air value changes ofshort-term investments | (12,523 | ) | (1,799 | ) | 17,939 | 2,577 | ||||||||||
Fair value changes of long-term investments | — | 2,072 | 18,444 | 2,649 | ||||||||||||
Gain on disposal of long-term investments and subsidiaries | — | — | (148,776 | ) | (21,371 | ) | ||||||||||
Loss from equity method investments, net of dividends received | — | — | 24,173 | 3,472 | ||||||||||||
Revaluation of previously held equity interests | — | (144,434 | ) | — | — | |||||||||||
Impairments of long-term investments | 15,989 | 46,375 | 5,900 | 847 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (283,218 | ) | 65,612 | (398,968 | ) | (57,308 | ) | |||||||||
Receivables due from related parties | (24,660 | ) | 35,118 | 7,382 | 1,060 | |||||||||||
Prepayments and other assets | (247,492 | ) | (540,647 | ) | (508,515 | ) | (73,044 | ) | ||||||||
Other long-term assets | — | — | (360,497 | ) | (51,782 | ) | ||||||||||
Accounts payable | 271,893 | 345,917 | 586,864 | 84,298 | ||||||||||||
Salary and welfare payable | 91,402 | 95,452 | 101,788 | 14,621 | ||||||||||||
Taxes payable | 13,514 | 13,708 | 23,114 | 3,320 | ||||||||||||
Amount due to related parties | 5,724 | 44,607 | (50,331 | ) | (7,230 | ) | ||||||||||
Deferred revenue | 356,413 | 398,623 | 353,997 | 50,848 | ||||||||||||
Accrued liabilities and other payables | 74,305 | 106,664 | 277,875 | 39,914 | ||||||||||||
Other long-term liabilities | — | — | 190,416 | 27,352 | ||||||||||||
Net cash provided by operating activities | 464,550 | 737,286 | 194,551 | 27,946 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (144,906 | ) | (293,566 | ) | (296,044 | ) | (42,524 | ) | ||||||||
Purchase of intangible assets | (485,912 | ) | (1,040,125 | ) | (1,268,830 | ) | (182,256 | ) | ||||||||
Purchase of short-term investments | (4,708,514 | ) | (6,666,731 | ) | (9,973,879 | ) | (1,432,658 | ) | ||||||||
M aturities ofshort-term investments | 4,932,376 | 6,252,151 | 9,993,525 | 1,435,480 | ||||||||||||
Cash consideration paid for purchase of subsidiaries, net of cash acquired | — | (135,822 | ) | (719,909 | ) | (103,408 | ) | |||||||||
Cash paid for long-term investments including loans | (320,088 | ) | (565,137 | ) | (1,226,794 | ) | (176,218 | ) | ||||||||
Repayment of loans from investees | — | — | 11,000 | 1,580 | ||||||||||||
Cash received from disposal of long-term investments | 12,750 | 1,250 | 566,554 | 81,380 | ||||||||||||
Impact to cash resulting from deconsolidation of subsidiar y | — | — | (959 | ) | (137 | ) | ||||||||||
Placement s of time deposits | (1,960 | ) | (750,473 | ) | (4,920,099 | ) | (706,728 | ) | ||||||||
Maturit ies of time deposits | — | 2,059 | 3,877,158 | 556,919 | ||||||||||||
Net cash used in investing activities | (716,254 | ) | (3,196,394 | ) | (3,958,277 | ) | (568,570 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds of short-term loans | 9,000 | — | 141,857 | 20,376 | ||||||||||||
Repayment of short-term loans | — | — | (100,000 | ) | (14,364 | ) | ||||||||||
Repurchase of Pre-IPO Ordinary Shares | (49,086 | ) | — | — | — | |||||||||||
Repurchase of noncontrolling interests | (2,689 | ) | — | (121,325 | ) | (17,427 | ) | |||||||||
Capital injections from noncontrolling interests | — | 22,198 | 154,492 | 22,191 | ||||||||||||
Proceeds from exercise of employees’ share options | — | 6 | 1 | * | ||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs of US$6,333 US$9,376 , respectively | — | 4,952,606 | 1,647,711 | 236,679 | ||||||||||||
Proceeds from issuance of Pre-IPO Series D1 Preferred Shares, net of NaN issuance costs | 49,086 | — | — | — | ||||||||||||
Proceeds from issuance of Pre-IPO Series D2 Preferred Shares, net of NaN issuance costs | 689,069 | — | — | — | ||||||||||||
Cash and cash equivalents of disposed business in connection with the spin-off transaction | (19,847 | ) | — | — | — | |||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$11,805 | — | — | 3,356,106 | 482,075 | ||||||||||||
Net cash provided by financing activities | 675,533 | 4,974,810 | 5,078,842 | 729,530 | ||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | 2021 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | (1,303,570 | ) | (3,054,017 | ) | (6,808,739 | ) | (1,068,441 | ) | ||||||||
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities: | ||||||||||||||||
Depreciation of property and equipment | 191,784 | 326,512 | 538,601 | 84,518 | ||||||||||||
Amortization of intangible assets | 905,613 | 1,395,129 | 1,903,226 | 298,658 | ||||||||||||
Amortization of right-of-use | 70,712 | 96,235 | 161,873 | 25,401 | ||||||||||||
Amortization of debt issuance costs | 9,117 | 19,291 | 25,234 | 3,960 | ||||||||||||
Share-based compensation expenses | 172,550 | 385,898 | 999,817 | 156,893 | ||||||||||||
Allowance for doubtful accounts | 9,396 | 99,165 | 189,165 | 29,684 | ||||||||||||
Inventory provision | 5,987 | 6,218 | 24,454 | 3,837 | ||||||||||||
Deferred income taxes | (10,479 | ) | (13,466 | ) | (21,492 | ) | (3,373 | ) | ||||||||
Unrealized exchange losses /(gains) | 2,636 | (3,018 | ) | (6,592 | ) | (1,034 | ) | |||||||||
Unrealized fair value changes of investments | 36,383 | (50,641 | ) | 200,274 | 31,428 | |||||||||||
Loss on disposal of property and equipment | — | — | 611 | 96 | ||||||||||||
Gain from disposal ofsubsidiaries and long-term investments | (148,776 | ) | — | (4,413 | ) | (692 | ) | |||||||||
Loss from equity method investments | 24,173 | 50,531 | 37,179 | 5,834 | ||||||||||||
Revaluation of previously held equity interests | — | — | 31,462 | 4,937 | ||||||||||||
Impairments of long-term investments | 5,900 | 8,000 | 91,493 | 14,357 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (398,968 | ) | (417,237 | ) | (429,460 | ) | (67,392 | ) | ||||||||
Amount due from related parties | 7,382 | 17,015 | 8,792 | 1,380 | ||||||||||||
Prepayments and other assets | (508,515 | ) | (610,592 | ) | (1,747,744 | ) | (274,258 | ) | ||||||||
Other long-term assets | (360,497 | ) | (245,224 | ) | (138,396 | ) | (21,717 | ) | ||||||||
Accounts payable | 586,864 | 816,103 | 1,056,847 | 165,843 | ||||||||||||
Salary and welfare payable | 101,788 | 374,442 | 254,213 | 39,892 | ||||||||||||
Taxes payable | 23,114 | 54,381 | 77,365 | 12,140 | ||||||||||||
Amount due to related parties | (50,331 | ) | — | — | — | |||||||||||
Deferred revenue | 353,997 | 734,786 | 494,551 | 77,606 | ||||||||||||
Accrued liabilities and other payables | 277,875 | 651,651 | 319,702 | 50,168 | ||||||||||||
Other long-term liabilities | 190,416 | 111,941 | 94,969 | 14,903 | ||||||||||||
Net cash provided by /(used in) operating activities | 194,551 | 753,103 | (2,647,008 | ) | (415,372 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (296,044 | ) | (602,122 | ) | (965,410 | ) | (151,494 | ) | ||||||||
Purchase of intangible assets | (1,268,830 | ) | (1,636,877 | ) | (2,721,799 | ) | (427,110 | ) | ||||||||
Purchase of short-term investments | (9,973,879 | ) | (26,731,176 | ) | (71,748,847 | ) | (11,258,960 | ) | ||||||||
Maturities of short-term investments | 9,993,525 | 24,921,538 | 60,524,888 | 9,497,676 | ||||||||||||
Cash consideration paid for purchase of subsidiaries, net of cash acquired | (719,909 | ) | (498,854 | ) | (521,984 | ) | (81,911 | ) | ||||||||
Cash paid for long-term investments including loans | (1,226,794 | ) | (1,261,161 | ) | (6,716,491 | ) | (1,053,964 | ) | ||||||||
Repayment of loans from investees | 11,000 | 3,500 | 539,225 | 84,616 | ||||||||||||
Cash received from disposal /return of long-termassets | 566,554 | 135,254 | 74,604 | 11,707 | ||||||||||||
Impact to cash resulting from deconsolidation of a subsidiary | (959 | ) | — | — | — | |||||||||||
Placements of time deposits | (4,920,099 | ) | (10,907,296 | ) | (10,697,444 | ) | (1,678,662 | ) | ||||||||
Maturities of time deposits | 3,877,158 | 7,670,373 | 7,655,147 | 1,201,260 | ||||||||||||
Net cash used in investing activities | (3,958,277 | ) | (8,906,821 | ) | (24,578,111 | ) | (3,856,842 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds of short-term loans | 141,857 | 200,000 | 1,332,597 | 209,114 | ||||||||||||
Repayment of short-term loans | (100,000 | ) | (100,000 | ) | (214,882 | ) | (33,720 | ) | ||||||||
Repurchase of noncontrolling interests | (121,325 | ) | (280,271 | ) | (104,696 | ) | (16,429 | ) | ||||||||
Capital injections from noncontrolling interests | 154,492 | 103,450 | 2,187 | 343 | ||||||||||||
Proceeds from exercise of employees’ share options | 1 | 3 | 3 | * | ||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs of US$9,376, US$563, and HKD 337,143, respectively | 1,647,711 | 2,817,458 | 19,288,423 | 3,026,774 | ||||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$11,805, US$13,857 and US$23,402, respectively | 3,356,106 | 5,594,779 | 10,085,520 | 1,582,638 | ||||||||||||
Net cash provided by financing activities | 5,078,842 | 8,335,419 | 30,389,152 | 4,768,720 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | 107,513 | (466,252 | ) | (319,034 | ) | (50,063 | ) | |||||||||
Net increase/(decrease) in cash and cash equivalents | 1,422,629 | (284,551 | ) | 2,844,999 | 446,443 | |||||||||||
Cash and cash equivalents at beginning of the year | 3,540,031 | 4,962,660 | 4,678,109 | 734,097 | ||||||||||||
Cash and cash equivalents at end of the year | 4,962,660 | 4,678,109 | 7,523,108 | 1,180,540 | ||||||||||||
Supplemental disclosures of cash flows information: | ||||||||||||||||
Cash paid for income taxes, net of tax refund | 33,734 | 54,022 | 73,717 | 11,568 | ||||||||||||
Cash paid for interest expense | 26,203 | 86,167 | 116,226 | 18,238 |
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||
Accretion to redeemable noncontrolling interests | — | 5,964 | — | — | ||||||||||||
Fixed assets purchases financed by accounts payable | 55,759 | 25,797 | 183,203 | 28,748 | ||||||||||||
Acquisitions and investments financed by payables | 79,059 | 125,363 | 731,503 | 114,789 | ||||||||||||
Intangible assets purchases financed by payables | 365,187 | 746,404 | 830,596 | 130,339 | ||||||||||||
Issuance of ordinary shares in the business combination, purchase of noncontrolling interests and investment addition | — | 889,957 | 1,207,980 | 189,558 | ||||||||||||
Issuance of ordinary shares in connection with debt conversion | — | — | 449,914 | 70,601 |
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | (48,145 | ) | 261,447 | 107,513 | 15,442 | |||||||||||
Net increase in cash and cash equivalents and restricted cash | 375,684 | 2,777,149 | 1,422,629 | 204,348 | ||||||||||||
Cash and cash equivalents and restricted cash at beginning of the year | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||
Including: | ||||||||||||||||
Cash and cash equivalents at beginning of the year | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||
Restricted cash at beginning of the year | — | — | — | — | ||||||||||||
Cash and cash equivalents and restricted cash at end of the year | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||
Including: | ||||||||||||||||
Cash and cash equivalents at end of the year | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||
Restricted cash at end of the year | — | — | — | — | ||||||||||||
Supplemental disclosures of cash flows information: | ||||||||||||||||
Cash paid for income taxes, net of tax refund | 6,196 | 15,765 | 33,734 | 4,846 | ||||||||||||
Cash paid for interest expense | — | — | 26,203 | 3,764 | ||||||||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | 258,554 | 64,605 | — | — | ||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | 129,244 | — | — | — | ||||||||||||
Fixed assets purchases financed by accounts payable | 30,050 | 40,277 | 55,759 | 8,009 | ||||||||||||
Acquisitions and investments financed by accrued liabilities and other payables | 6,534 | 502,279 | 79,059 | 11,356 | ||||||||||||
Intangible assets purchases financed by accounts payable | 70,726 | 415,780 | 365,187 | 52,456 |
1. | Operations |
Major Subsidiaries | Place and Year of Incorporation | Percentage of Direct or Indirect Economic Ownership | Principal Activities | |||
Bilibili HK Limited | Hong Kong, 2014 | 100 | Investment holding | |||
Hode HK Limited | Hong Kong, 2014 | 100 | Investment holding | |||
Chaodian HK Limited | Hong Kong, 2019 | 100 | Investment holding | |||
Bilibili Co., Ltd. | Japan, 2014 | 100 | Business development | |||
Hode Shanghai Limited (“Hode Shanghai”) | PRC, 2014 | 100 | Technology development | |||
Shanghai Bilibili Technology Co., Ltd. | PRC, 2016 | 100 | Technology development | |||
Chaodian (Shanghai) Technology Co., Ltd. | PRC, 2019 | 100 | E-commerce and advertising |
Major VIEs and VIEs’ subsidiaries | Place and Year of Incorporation Acquisition | Percentage of Direct or Indirect Economic Ownership | Principal Activities | |||
Shanghai Hode Information Technology Co., Ltd. (“Hode Information Technology”) | PRC, 2013 | 100 | Mobile game operation | |||
Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) | PRC, 2014 | 100 | Video distribution and game distribution | |||
Sharejoy Network Technology Co., Ltd. (“Sharejoy Network”) | PRC, 2014 | 100 | Game distribution | |||
Shanghai Hehehe Culture Communication Co., Ltd. (“Shanghai Hehehe”) | PRC, 2014 | 100 | Comics distribution | |||
Shanghai Anime Tamashi Cultural Media Co., Ltd. (“Shanghai Anime Tamashi”) | PRC, 2015 | 100 | E-commerce platform |
1. | Operations (Continued) |
1. | Operations |
1. | Operations (Continued) |
1. | Operations (Continued) |
1. | Operations (Continued) |
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Cash and cash equivalents | 349,190 | 377,114 | ||||||
Time deposits | 22,161 | 6,997 | ||||||
Accounts receivable, net | 343,099 | 524,311 | ||||||
Amounts due from Group companies | 173,596 | 391,951 | ||||||
Amount due from related parties | 59,117 | 101,983 | ||||||
Prepayments and other current assets | 1,383,648 | 1,806,185 | ||||||
Short-term investments | 1,175,309 | 927,124 | ||||||
Long-term investments, net | 1,223,943 | 1,745,466 | ||||||
Other non-current assets | 2,183,411 | 4,926,989 | ||||||
Total assets | 6,913,474 | 10,808,120 | ||||||
Accounts payable | 2,332,372 | 3,164,301 | ||||||
Salary and welfare payables | 288,686 | 343,008 | ||||||
Taxes payable | 106,492 | 128,817 | ||||||
Short-term loans | 100,000 | 400,000 | ||||||
Deferred revenue | 1,769,992 | 2,192,460 | ||||||
Accrued liabilities and other payables | 449,370 | 1,184,523 | ||||||
Amounts due to the Group companies | 3,752,973 | 7,214,146 | ||||||
Amounts due to related parties | — | 117,901 | ||||||
Other long-term payable | 19,640 | 222,719 | ||||||
Total liabilities | 8,819,525 | 14,967,875 | ||||||
Total Bilibili Inc’s shareholders’ deficit | (1,941,724 | ) | (4,170,459 | ) | ||||
Noncontrolling interests | 35,673 | 10,704 | ||||||
Total shareholders’ deficit | (1,906,051 | ) | (4,159,755 | ) | ||||
Total liabilities and shareholders’ deficit | 6,913,474 | 10,808,120 | ||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Third-party revenues | 6,056,332 | 9,651,207 | 12,867,536 | |||||||||
Inter-company revenues | 531,830 | 667,765 | 1,574,896 | |||||||||
Total revenues | 6,588,162 | 10,318,972 | 14,442,432 | |||||||||
Third-party costs and expenses | (5,795,826 | ) | (9,931,047 | ) | (16,283,295 | ) | ||||||
Inter-company consulting and services costs and expenses | (1,266,411 | ) | (1,021,596 | ) | (593,272 | ) | ||||||
Other inter-company costs and expenses | (75,552 | ) | (201,587 | ) | (271,096 | ) | ||||||
Total costs and expenses | (7,137,789 | ) | (11,154,230 | ) | (17,147,663 | ) | ||||||
Gain/(Loss) from non-operations | 122,116 | 8,368 | (163,146 | ) | ||||||||
Loss before income tax expenses | (427,511 | ) | (826,890 | ) | (2,868,377 | ) | ||||||
Income tax expenses | (20,603 | ) | (27,080 | ) | (38,997 | ) | ||||||
Net loss | (448,114 | ) | (853,970 | ) | (2,907,374 | ) | ||||||
Net loss attributable to noncontrolling interests | 1,936 | 8,501 | 10,367 | |||||||||
Net loss attributable to Bilibili Inc.’s shareholders | (446,178 | ) | (845,469 | ) | (2,897,007 | ) | ||||||
1. | Operations |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 152,295 | 201,310 | ||||||
Time deposits | 10,265 | 7,674 | ||||||
Accounts receivable, net | 130,823 | 223,438 | ||||||
Amounts due from the Company and its subsidiaries | 165,559 | 127,944 | ||||||
Receivables due from related parties | — | 170,535 | ||||||
Prepayments and other current assets | 841,018 | 999,780 | ||||||
Short-term investments | 252,943 | 672,787 | ||||||
Non-current assets: | ||||||||
Long-term investments, net | 843,149 | 794,549 | ||||||
Other non-current assets | 943,373 | 1,483,983 | ||||||
Total assets | 3,339,425 | 4,682,000 | ||||||
Current liabilities: | ||||||||
Accounts payable | 1,078,070 | 1,454,924 | ||||||
Salary and welfare payable | 94,699 | 128,343 | ||||||
Taxes payable | 27,152 | 33,611 | ||||||
Deferred revenue | 937,086 | 1,234,508 | ||||||
Amounts due to the Company and its subsidiaries | 1,594,527 | 2,650,499 | ||||||
Accrued liabilities and other payables | 318,568 | 222,078 | ||||||
Amount due to related parties | 23,054 | — | ||||||
Non-current liabilities : | ||||||||
Other long-term liabilities | — | 23,108 | ||||||
Total liabilitie s | 4,073,156 | 5,747,071 |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Net revenues: | ||||||||||||
Revenue from third parties | 2,465,296 | 3,691,219 | 6,056,332 | |||||||||
Revenue from the Company and its subsidiaries | 22,751 | 443,405 | 531,830 | |||||||||
Net revenues | 2,488,047 | 4,134,624 | 6,588,162 | |||||||||
Net loss | (63,088 | ) | (587,932 | ) | (448,114 | ) |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Net cash provided by operating activities | 492,063 | 636,972 | 271,299 | |||||||||
Net cash used in investing activities | (632,549 | ) | (674,483 | ) | (1,518,931 | ) | ||||||
Net cash provided by financing activities | 179,707 | 130,592 | 1,300,740 |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Consulting and services charges to Group companies | (1,579,212 | ) | (1,074,899 | ) | (637,787 | ) | ||||||
Other operating cashflow from Group companies | 1,027,392 | 586,017 | 1,683,907 | |||||||||
Operating cashflow from/(to) third-parties | 823,119 | 1,965,376 | (1,729,079 | ) | ||||||||
Net cash provided by/(used in) operating activities | 271,299 | 1,476,494 | (682,959 | ) | ||||||||
Purchase of short-term investments | (6,535,669 | ) | (13,973,904 | ) | (12,610,305 | ) | ||||||
Maturities of short-term investments | 6,113,861 | 13,498,485 | 12,954,425 | |||||||||
Placements of time deposits | (7,584 | ) | (25,515 | ) | (39,318 | ) | ||||||
Maturities of time deposits | 7,584 | 7,896 | 54,319 | |||||||||
Other investing activities | (1,097,123 | ) | (1,928,125 | ) | (3,265,756 | ) | ||||||
Net cash used in investing activities | (1,518,931 | ) | (2,421,163 | ) | (2,906,635 | ) | ||||||
Investments and loans from Group companies | 1,300,740 | 990,287 | 3,307,226 | |||||||||
Other financing activities | — | 100,000 | 300,000 | |||||||||
Net cash provided by financing activities | 1,300,740 | 1,090,287 | 3,607,226 | |||||||||
2. | Significant Accounting Policies |
a) | Basis of presentation |
b) | Principles of consolidation |
2. | Significant Accounting Policies (Continued) |
c) | Use of estimates |
d) | Functional currency and foreign currency translation |
e) | Convenience Translation |
2. | Significant Accounting Policies (Continued) |
f) | Fair value measurements |
a. | Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. |
b. | Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. |
c. | Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
2. | Significant Accounting Policies (Continued) |
g) | Cash and cash equivalents and time deposits |
h) | Receivables, net |
2. | Significant Accounting Policies (Continued) |
h) | Receivables, net (Continued) |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Beginning balance prior to ASC 326 | — | 17,696 | — | |||||||||
Impact of adoption to ASC 326 | — | 17,900 | — | |||||||||
Beginning balance | 14,420 | 35,596 | 121,003 | |||||||||
Provisions | 9,396 | 99,165 | 189,165 | |||||||||
Write-offs | (6,120 | ) | (13,758 | ) | (17,695 | ) | ||||||
Ending balance | 17,696 | 121,003 | 292,473 | |||||||||
i) | Inventories, net |
Property and equipment, net |
Significant Accounting Policies (Continued) |
k) | Intangible assets, net |
Licensed copyrights of content | shorter of the licensed period or projected useful life of the content, | |
License rights of mobile games | shorter of the licensed period or projected useful life of mobile games, | |
1 based on the underlying intangible assets expected to contribute to the future cash flowsto |
Goodwill |
Significant Accounting Policies (Continued) |
m) | Impairment of long-lived assets other than goodwill |
Research and development expenses |
Sales and marketing expenses |
General and administrative expenses |
2. | Significant Accounting Policies (Continued) |
q) | Leases |
December 31, 2021 | ||||
RMB in thousands | ||||
2022 | 207,531 | |||
2023 | 148,596 | |||
2024 | 87,763 | |||
2025 | 49,981 | |||
2026 and thereafter | 3,735 | |||
Total future lease payments | 497,606 | |||
Impact of discounting remaining lease payments | (41,635 | ) | ||
Total lease liabilities | 455,971 | |||
For the Year Ended December 31, | ||||||||
2020 | 2021 | |||||||
RMB in thousands | ||||||||
Cash payments for operating leases | 107,772 | 161,997 | ||||||
Right-of-use | 260,867 | 152,481 | ||||||
2. | Significant Accounting Policies (Continued) |
December 31, 2019 | ||||
RMB in thousands | ||||
2020 | 93,741 | |||
2021 | 100,109 | |||
2022 | 89,399 | |||
2023 | 28,643 | |||
2024 | 357 | |||
Total future lease payments | 312,249 | |||
Impact of discounting remaining lease payments | (23,298) | |||
Total lease liabilities | 288,951 | |||
Operating Leases* | ||||
RMB in thousands | ||||
2019 | 65,400 | |||
2020 | 72,230 | |||
2021 | 73,054 | |||
2022 | 69,681 | |||
Beyond 2022 | 19,544 |
Share-based compensation |
2. | Significant Accounting Policies (Continued) |
Employee benefits |
Investments |
2. | Significant Accounting Policies (Continued) |
t) | Investments (Continued) |
2. | Significant Accounting Policies (Continued) |
Taxation |
Revenue recognition |
2. | Significant Accounting Policies (Continued) |
Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Mobile game | 2,058,226 | 2,936,331 | 3,597,809 | |||||||||
Advertising | 159,160 | 463,490 | 817,016 | |||||||||
Live broadcasting and other VAS | 176,443 | 585,643 | 1,641,043 | |||||||||
E-commerce and others | 74,620 | 143,467 | 722,054 | |||||||||
Total net revenues | 2,468,449 | 4,128,931 | 6,777,922 | |||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Mobile games | 3,597,809 | 4,803,382 | 5,090,926 | |||||||||
Value-added services | 1,641,043 | 3,845,663 | 6,934,886 | |||||||||
Advertising | 817,016 | 1,842,772 | 4,523,421 | |||||||||
E-commerce and others | 722,054 | 1,507,159 | 2,834,451 | |||||||||
Total net revenues | 6,777,922 | 11,998,976 | 19,383,684 | |||||||||
2 . | Significant Accounting Policies (Continued) |
Cost of revenues |
Related parties |
Significant Accounting Policies (Continued) |
y) | Net loss per share |
Statutory reserves |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Appropriations to general reserve funds and statutory surplus funds | 2,480 | 3,591 | 5,797 |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Appropriations to general reserve funds and statutory surplus funds | 5,797 | 4,421 | 6,737 |
Significant Accounting Policies (Continued) |
aa) | Noncontrolling interests |
Comprehensive |
Segment reporting |
Business |
2. | Significant Accounting Policies (Continued) |
dd) | Business combinations (Continued) |
ee) | Recently issued accounting pronouncements |
3. | Concentrations and Risks |
a) | Telecommunications service provider |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Total number of telecommunications service providers | 52 | 88 | 107 | |||||||||
Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure | 2 | 3 | 2 | |||||||||
Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers | 34 | % | 48 | % | 45 | % |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Total number of telecommunications service providers | 107 | 116 | 126 | |||||||||
Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure | 2 | 3 | 3 | |||||||||
Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers | 45 | % | 55 | % | 55 | % |
b) | Foreign currency exchange rate risk |
c) | Credit risk |
RMB in thousands | December 31, 2018 | December 31, 2019 | ||||||
Distribution channel A | 63,762 | 118,860 |
RMB in thousands | December 31, 2020 | December 31, 2021 | ||||||
Distribution channel A | 146,907 | 171,680 |
3. | Concentrations and Risks (Continued) |
d) | Major customers and supplying channels |
e) | Mobile games |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Mobile game 1 | 72 | % | 74 | % | 58 | % | ||||||
Mobile game 2 | 13 | % | 11 | % | 10 | % |
Balance at January 1, | Charged to (write- back against) cost and expenses | Write-off ofreceivable balances and corresponding provisions | Balance at December 31, | |||||||||||||
RMB in thousands | ||||||||||||||||
2017 | 1,800 | 2,716 | — | 4,516 | ||||||||||||
2018 | 4,516 | 10,904 | (1,000 | ) | 14,420 | |||||||||||
2019 | 14,420 | 9,396 | (6,120 | ) | 17,696 |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Mobile game 1 | 31 | % | 11 | % | N/A |
Prepayments and Other Current Assets |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Prepayments for revenue sharing cost* | 462,883 | 542,971 | ||||||
Prepayments for content cost | 130,619 | 226,500 | ||||||
Prepayments for sales tax | 80,487 | 157,244 | ||||||
Interest income receivable | 26,812 | 93,688 | ||||||
Inventories, net | 55,032 | 69,914 | ||||||
Loans to investees or ongoing investments | 84,075 | 64,463 | ||||||
Prepayments of marketing and other operational expenses | 33,198 | 53,246 | ||||||
Prepayments /receivable jointly invested contents relating | 44,951 | 43,838 | ||||||
Deposits | 20,447 | 26,301 | ||||||
Prepayments to inventory suppliers | 12,901 | 9,058 | ||||||
Others | 39,446 | 28,678 | ||||||
Total | 990,851 | 1,315,901 | ||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Prepayments for revenue sharing cost* | 782,518 | 1,117,431 | ||||||
Prepayments for sales tax | 202,025 | 523,282 | ||||||
Inventories, net | 160,006 | 455,767 | ||||||
Prepayments of marketing and other operational expenses | 64,068 | 181,764 | ||||||
Deposits | 51,661 | 106,555 | ||||||
Prepayments to inventory suppliers | 19,970 | 94,746 | ||||||
Prepayments for content cost | 195,175 | 73,496 | ||||||
Loans to investees or ongoing investments | 187,672 | 68,681 | ||||||
Prepayments /receivables relating to jointly invested content | 28,664 | 36,246 | ||||||
Interest income receivable | 6,396 | 10,927 | ||||||
Others | 67,632 | 138,153 | ||||||
Total | 1,765,787 | 2,807,048 | ||||||
* | App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance on-going services toend-users. The related direct and incremental platform commissions as well as game developers’ licensing fees are deferred and reported in “Prepayments and Other Current Assets” on the consolidated balance sheets. |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Financial products | 858,021 | 1,070,113 | ||||||
Investment s in publicly traded companies | — | 80,918 | ||||||
Money market funds | 87,317 | 109,779 | ||||||
Total | 945,338 | 1,260,810 | ||||||
5. | Short-term Investments |
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Financial products | 2,866,643 | 13,583,580 | ||||||
Investments in publicly traded companies | 434,609 | 1,426,946 | ||||||
Money market funds | 55,937 | 50,196 | ||||||
Total | 3,357,189 | 15,060,722 | ||||||
6. | Property and Equipment, Net |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Leasehold improvements | 51,186 | 76,772 | ||||||
Servers and computers | 481,695 | 765,110 | ||||||
Others | 19,127 | 23,211 | ||||||
Total | 552,008 | 865,093 | ||||||
Less: accumulated depreciation | (157,110 | ) | (349,006 | ) | ||||
Net book value | 394,898 | 516,087 | ||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Leasehold improvements | 118,581 | 221,280 | ||||||
Servers and computers | 1,286,310 | 2,277,947 | ||||||
Others | 30,750 | 59,871 | ||||||
Total | 1,435,641 | 2,559,098 | ||||||
Less: accumulated depreciation | (673,700 | ) | (1,208,842 | ) | ||||
Net book value | 761,941 | 1,350,256 | ||||||
7. | Intangible Assets, Net |
As of December 31, 2018 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 1,997,175 | (921,565 | ) | 1,075,610 | ||||||||
License rights of mobile games | 18,098 | (15,163 | ) | 2,935 | ||||||||
Domain names and others | 412,202 | (71,312 | ) | 340,890 | ||||||||
Total | 2,427,475 | (1,008,040 | ) | 1,419,435 | ||||||||
As of December 31, 2019 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 3,072,959 | (1,736,608 | ) | 1,336,351 | ||||||||
License rights of mobile games | 71,703 | (35,863 | ) | 35,840 | ||||||||
Domain names and others | 434,089 | (148,947 | ) | 285,142 | ||||||||
Total | 3,578,751 | (1,921,418 | ) | 1,657,333 | ||||||||
As of December 31, 2020 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 4,556,683 | (2,891,742 | ) | 1,664,941 | ||||||||
License rights of mobile games | 299,786 | (119,493 | ) | 180,293 | ||||||||
Intellectual property and others | 753,282 | (241,557 | ) | 511,725 | ||||||||
Total | 5,609,751 | (3,252,792 | ) | 2,356,959 | ||||||||
As of December 31, 2021 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 5,567,213 | (3,245,622 | ) | 2,321,591 | ||||||||
License rights of mobile games | 455,687 | (229,559 | ) | 226,128 | ||||||||
Intellectual property and others | 1,674,232 | (386,351 | ) | 1,287,881 | ||||||||
Total | 7,697,132 | (3,861,532 | ) | 3,835,600 | ||||||||
Intangible assets amortization expense | ||||
RMB in thousands | ||||
2020 | 705,062 | |||
2021 | 390,818 | |||
2022 | 228,651 | |||
2023 | 123,159 | |||
2024 | 74,550 | |||
Thereafter | 135,093 | |||
Total expected amortization expense | 1,657,333 | |||
Intangible assets amortization expense | ||||
RMB in thousands | ||||
2022 | 1,300,530 | |||
2023 | 918,258 | |||
2024 | 589,221 | |||
2025 | 337,846 | |||
2026 | 264,088 | |||
Thereafter | 425,657 | |||
Total expected amortization expense | 3,835,600 | |||
8. | Goodwill |
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Beginning balance | 1,012,026 | 1,295,786 | ||||||
Additions (Note 24) | 283,760 | 1,042,517 | ||||||
Ending balance | 1,295,786 | 2,338,303 | ||||||
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Beginning balance | 50,967 | 941,488 | ||||||
Additions (Note 26) | 890,521 | 70,538 | ||||||
Ending balance | 941,488 | 1,012,026 | ||||||
Long-term Investments, Net |
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Equity investments accounted for using the measurement alternative | 1,791,393 | 3,344,465 | ||||||
Equity investments accounted for using the equity method | 188,199 | 1,235,289 | ||||||
Investments accounted for at fair value | 253,346 | 922,770 | ||||||
Total | 2,232,938 | 5,502,524 | ||||||
10. | Taxation |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Current income tax expense | 8,881 | 14,909 | 29,452 | |||||||||
Withholding income tax expense | — | 11,079 | 16,894 | |||||||||
Deferred income tax expense | — | — | (10,479 | ) | ||||||||
Total | 8,881 | 25,988 | 35,867 | |||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Current income tax expenses | 29,452 | 48,081 | 102,715 | |||||||||
Withholding income tax expenses | 16,894 | 18,754 | 14,066 | |||||||||
Deferred tax benefits | (10,479 | ) | (13,466 | ) | (21,492 | ) | ||||||
Total | 35,867 | 53,369 | 95,289 | |||||||||
a) | Income taxes |
10. | Taxation (Continued) |
a) | Income taxes (continued) |
For the Year Ended | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
% | % | % | ||||||||||
Statutory income tax rate | 25.00 | 25.00 | 25.00 | |||||||||
Permanent differences | (13.22 | ) | (3.76 | ) | (0.83 | ) | ||||||
Tax rate difference from statutory rate in other jurisdictions* | (20.07 | ) | (0.92 | ) | (0.39 | ) | ||||||
Tax effect of preferential tax treatments | 3.76 | (3.15 | ) | (8.48 | ) | |||||||
Withholding tax | — | (2.05 | ) | (1.33 | ) | |||||||
Change in valuation allowance | (0.55 | ) | (19.94 | ) | (16.80 | ) | ||||||
Effective income tax rate | (5.08 | ) | (4.82 | ) | (2.83 | ) | ||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
% | % | % | ||||||||||
Statutory income tax rate | 25.00 | 25.00 | 25.00 | |||||||||
Permanent differences | (0.83 | ) | 0.60 | (1.19 | ) | |||||||
Tax rate difference from statutory rate in other jurisdictions* | (0.39 | ) | (3.90 | ) | (1.43 | ) | ||||||
Tax effect of preferential tax treatments | (8.48 | ) | (8.29 | ) | (7.94 | ) | ||||||
Withholding tax | (1.33 | ) | (0.63 | ) | (0.21 | ) | ||||||
Change in valuation allowance | (16.80 | ) | (14.56 | ) | (15.65 | ) | ||||||
Effective income tax rate | (2.83 | ) | (1.78 | ) | (1.42 | ) | ||||||
* | It is primarily due to the tax effect of the Company as a tax-exempt entity incorporated in the Cayman Islands. |
RMB in thousands | ||||
Loss expiring in | ||||
Loss expiring in 2023 | ||||
Loss expiring in 2024 | 200,747 | |||
286,268 | ||||
Loss expiring in 2026 and thereafter | 9,155,679 | |||
Total | ||||
Taxation (Continued) |
b) | Sales tax |
c) | Deferred tax assets and liabilities |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Deferred tax assets: | ||||||||
Deferred revenue, primarily for games | 90,311 | 95,806 | ||||||
Accrued expenses and other payables | 25,984 | 82,351 | ||||||
Advertising expenses in excess of deduction limit | 312 | 7,507 | ||||||
Net operating tax loss carry forwards | 176,439 | 360,975 | ||||||
Others | 909 | 1,199 | ||||||
Total deferred tax assets | 293,955 | 547,838 | ||||||
Less: valuation allowance | (293,955 | ) | (537,359 | ) | ||||
Net deferred tax assets | — | 10,479 | ||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Deferred tax assets: | ||||||||
Deferred revenue | 163,620 | 143,688 | ||||||
Accrued expenses and other payables | 128,886 | 150,092 | ||||||
Advertising expenses in excess of deduction limit | 65,674 | 130,720 | ||||||
Net operating tax loss carry forwards | 621,035 | 1,662,884 | ||||||
Others | 19,036 | 71,048 | ||||||
Total deferred tax assets | 998,251 | 2,158,432 | ||||||
Less: valuation allowance | (977,333 | ) | (2,122,077 | ) | ||||
Net deferred tax assets | 20,918 | 36,355 | ||||||
Deferred tax liabilities : | ||||||||
Acquired intangible assets (Note 24) | (46,112 | ) | (82,191 | ) | ||||
Total deferred tax liabilities | (46,112 | ) | (82,191 | ) | ||||
Balance at January 1 | Re-measurement due to applicable preferential tax rate for HNTE | Addition | Expiration of loss carry forward and impact of disposal of subsidiaries | Balance at December 31 | ||||||||||||||||||
RMB in thousands | ||||||||||||||||||||||
2017 | (183,091 | ) | 23,074 | (962 | ) | 3,715 | (157,264 | ) | ||||||||||||||
2018 | (157,264 | ) | 22,502 | (159,690 | ) | 497 | (293,955 | ) | ||||||||||||||
2019 | (293,955 | ) | — | (248,896 | ) | 5,492 | (537,359 | ) |
Balance at January 1 | Re-measurement due to applicable preferential tax rate | Addition | Expiration of loss carry forward and impact of disposal of subsidiaries | Balance at December 31 | ||||||||||||||||
RMB in thousands | ||||||||||||||||||||
2019 | (293,955 | ) | — | (248,896 | ) | 5,492 | (537,359 | ) | ||||||||||||
2020 | (537,359 | ) | 105 | (484,445 | ) | 44,366 | (977,333 | ) | ||||||||||||
2021 | (977,333 | ) | — | (1,154,342 | ) | 9,598 | (2,122,077 | ) |
Taxation (Continued) |
d) | Withholding income tax on dividends |
11. | Taxes Payable |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Withholding individual income taxes for employees | 7,844 | 12,941 | ||||||
VAT payable | 13,920 | 16,519 | ||||||
EIT payable | 6,913 | 20,599 | ||||||
Withholding income tax payable | 5,510 | 12,302 | ||||||
Others | 4,318 | 5,495 | ||||||
Total | 38,505 | 67,856 | ||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
EIT payable | 31,181 | 69,773 | ||||||
VAT payable | 50,881 | 52,614 | ||||||
Withholding individual income taxes for employees | 20,465 | 44,968 | ||||||
Withholding income tax payable | 18,300 | 29,242 | ||||||
Others | 6,365 | 7,173 | ||||||
Total | 127,192 | 203,770 | ||||||
12. | Short-term loans |
Interest Rate range | Maturity Date | Balance at December 31, 2020 | ||||||||
RMB in thousands | ||||||||||
Unsecured bank loans | 3.70% | within 12 months | 100,000 | |||||||
Interest Rate range | Maturity Date | Balance at December | ||||||||
RMB in thousands | ||||||||||
Unsecured bank loans | 3.60%~3.70% | within 12 months | 943,658 | |||||||
Unsecured borrowing | 3.95% | within 12 months | 288,448 | |||||||
Total | 1,232,106 | |||||||||
1 3 . | Accrued Liabilities and Other Payables |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Accrued marketing expenses | 71,217 | 229,457 | ||||||
Leasing liabilities - current portion | — | 95,901 | ||||||
Consideration payable for acquisitions and investments | 502,279 | 79,059 | ||||||
Advances to/payables from third parties | 21,966 | 76,893 | ||||||
Payables to producers and licensors | 9,357 | 25,898 | ||||||
Professional fees | 13,492 | 22,562 | ||||||
Other staff related cost | 18,685 | 13,791 | ||||||
Interest payable | — | 11,990 | ||||||
Others | 33,446 | 20,212 | ||||||
Total | 670,442 | 575,763 | ||||||
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Accrued marketing expenses | 783,455 | 1,321,776 | ||||||
Consideration payable for acquisitions and investments | 125,363 | 526,453 | ||||||
Leasing liabilities - current portion | 150,402 | 206,758 | ||||||
Payables to producers and licensors | 63,307 | 139,951 | ||||||
Professional fees | 38,573 | 64,510 | ||||||
Interest payable | 14,041 | 26,469 | ||||||
Advances from/payables to third parties | 5,869 | 14,386 | ||||||
Other staff related cost | 13,872 | 5,325 | ||||||
Others | 42,794 | 111,327 | ||||||
Total | 1,237,676 | 2,416,955 | ||||||
Long-term |
1 4 . | Long-term Debt (Continued) |
14. | Long-term Debt (Continued) |
December 31, 2020 | December 31, 2021 | Effective interest rate | ||||||||||
Amounts | Amounts | |||||||||||
RMB in thousands | ||||||||||||
April 2026 Notes | 3,204,309 | 2,697,698 | 1.74 | % | ||||||||
2027 Notes | 5,136,613 | 5,031,312 | 1.52 | % | ||||||||
December 2026 Notes | — | 10,055,082 | 0.80 | % | ||||||||
Carrying value | 8,340,922 | 17,784,092 | ||||||||||
Unamortized discount and debt issuance costs | 141,448 | 255,033 | ||||||||||
Total principal amounts of unsecured senior notes | 8,482,370 | 18,039,125 | ||||||||||
1 5 . | Ordinary Shares |
Pre-IPO Series APreferred | Pre-IPO Series A+Preferred Shares | Pre-IPO Series BPreferred Shares | Pre-IPO Series CPreferred Shares | Pre-IPO Series C1Preferred Shares | Pre-IPO Series C2Preferred | Pre-IPO Series D1Preferred Shares | Pre-IPO Series D2Preferred Shares | Total Mezzanine Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB in thousands, except for share data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2016 | 7,078,502 | 15,640 | 14,643,281 | 79,349 | 22,794,876 | 302,257 | 39,297,373 | 1,085,154 | 42,585,304 | 1,344,896 | 954,605 | 34,317 | — | — | — | — | 127,353,941 | 2,861,613 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Pre-IPO Preferred Shares | — | — | — | — | — | — | — | — | — | — | — | — | 1,154,643 | 49,086 | 13,759,564 | 689,069 | 14,914,207 | 738,155 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Series C Preferred Shares toPre-IPO Series D1 Preferred Shares | — | — | — | — | — | — | (11,301,189 | ) | (351,928 | ) | — | — | — | — | 11,301,189 | 481,172 | — | — | — | 129,244 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share based compensation in connection with redesignation of Pre-IPO Ordinary Shares toPre-IPO Preferred Shares | — | — | — | — | — | — | — | — | — | — | — | — | — | 10,474 | — | — | — | 10,474 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Ordinary Shares toPre-IPO Series D1 Preferred Shares | — | — | — | — | — | — | — | — | — | — | — | — | 645,357 | 17,003 | — | — | 645,357 | 17,003 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | — | 985 | — | 6,332 | — | 23,302 | — | 64,129 | — | 97,455 | — | 2,446 | — | 28,650 | — | 35,255 | — | 258,554 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | 7,078,502 | 16,625 | 14,643,281 | 85,681 | 22,794,876 | 325,559 | 27,996,184 | 797,355 | 42,585,304 | 1,442,351 | 954,605 | 36,763 | 13,101,189 | 586,385 | 13,759,564 | 724,324 | 142,913,505 | 4,015,043 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-IPO Series APreferred Shares | Pre-IPO Series A+Preferred Shares | Pre-IPO Series BPreferred Shares | Pre-IPO Series CPreferred Shares | Pre-IPO Series C1Preferred Shares | Pre-IPO Series C2Preferred Shares | Pre-IPO Series D1Preferred Shares | Pre-IPO Series D2Preferred Shares | Total Mezzanine | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB in thousands, except for share data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | 7,078,502 | 16,625 | 14,643,281 | 85,681 | 22,794,876 | 325,559 | 27,996,184 | 797,355 | 42,585,304 | 1,442,351 | 954,605 | 36,763 | 13,101,189 | 586,385 | 13,759,564 | 724,324 | 142,913,505 | 4,015,043 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion to Pre-IPO PreferredShares redemption value | — | 242 | — | 1,448 | — | 5,328 | — | 13,633 | — | 23,024 | — | 578 | — | 9,124 | — | 11,228 | — | 64,605 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO PreferredShares into Class Y Ordinary Shares | — | — | — | — | — | — | — | — | (1,104,535 | ) | (38,007 | ) | — | — | — | — | — | — | (1,104,535 | ) | (38,007 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Preferred Shares into Class Z OrdinaryShares | (7,078,502 | ) | (16,867 | ) | (14,643,281 | ) | (87,129 | ) | (22,794,876 | ) | (330,887 | ) | (27,996,184 | ) | (810,988 | ) | (41,480,769 | ) | (1,427,368 | ) | (954,605 | ) | (37,341 | ) | (13,101,189 | ) | (595,509 | ) | (13,759,564 | ) | (735,552 | ) | (141,808,970 | ) | (4,041,641 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Contributions to medical and pension schemes | 91,302 | 158,113 | 215,553 | |||||||||
Other employee benefits | 14,595 | 23,958 | 24,180 | |||||||||
Total | 105,897 | 182,071 | 239,733 | |||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Contributions to medical and pension schemes | 215,553 | 195,655 | 695,310 | |||||||||
Other employee benefits | 24,180 | 40,216 | 65,990 | |||||||||
Total | 239,733 | 235,871 | 761,300 | |||||||||
Share-based Compensation |
a) | Description of share option plans |
b) | Valuation assumptions |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Expected volatility | 42.5%-45.8 | % | 47.8%-48.4 | % | 49.6%-52.1 | % | ||||||
Weighted average volatility | 43.3 | % | 48.3 | % | 50.8 | % | ||||||
Expected dividends | — | — | — | |||||||||
Risk-free rate | 1.5% - 2.3 | % | 2.6%-2.8 | % | 1.4%-2.4 | % | ||||||
Contractual term (in years) | 6 | 6 | 6 |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Expected volatility | 49.6%-52.1% | 50.1%-55.0% | 53.0%-53.5% | |||||||||
Weighted average volatility | 50.8% | 51.9% | 53.2% | |||||||||
Expected dividends | — | — | 0 — | |||||||||
Risk-free rate | 1.4%-2.4% | 0.4%-0.7% | 0.9%-1.4% | |||||||||
Contractual term (in years) | 6 | 6-7 | 6-7 |
1 | Share-based Compensation (Continued) |
(b) | Valuation assumptions (continued) |
(c) | Share options activities |
Employees | Senior Management | Consultants | Total | Weighted Average Exercise | Weighted Average Remaining Contractual Life | Aggregate Intrinsic | ||||||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | US$ | (In years) | (RMB in thousands) | ||||||||||||||||||||||
Outstanding at January 1, 2017 | 4,992 | 6,580 | — | 11,572 | 0.0001 | 5.02 | 224,620 | |||||||||||||||||||||
Granted | 3,419 | 5,115 | 700 | 9,234 | 0.0001 | |||||||||||||||||||||||
Exercised | — | — | — | — | 0.0001 | |||||||||||||||||||||||
Forfeited | (287 | ) | (1,100 | ) | — | (1,387 | ) | 0.0001 | ||||||||||||||||||||
Outstanding at December 31, 2017 | 8,124 | 10,595 | 700 | 19,419 | 0.0001 | 4.80 | 880,197 | |||||||||||||||||||||
Outstanding at January 1, 2018 | 8,124 | 10,595 | 700 | 19,419 | 0.0001 | 4.80 | 880,197 | |||||||||||||||||||||
Granted | 2,587 | 620 | — | 3,207 | 0.0001 | |||||||||||||||||||||||
Exercised | (2,387 | ) | (5,543 | ) | (212 | ) | (8,142 | ) | 0.0001 | |||||||||||||||||||
Forfeited | (683 | ) | (1,437 | ) | (50 | ) | (2,170 | ) | 0.0001 | |||||||||||||||||||
Outstanding at December 31, 2018 | 7,641 | 4,235 | 438 | 12,314 | 0.0001 | 4.46 | 1,233,028 | |||||||||||||||||||||
Outstanding at January 1, 2019 | 7,641 | 4,235 | 438 | 12,314 | 0.0001 | 4.46 | 1,233,028 | |||||||||||||||||||||
Granted | 2,464 | 730 | — | 3,194 | 0.0001 | |||||||||||||||||||||||
Exercised | (1,352 | ) | (710 | ) | (193 | ) | (2,255 | ) | 0.0001 | |||||||||||||||||||
Forfeited | (479 | ) | (600 | ) | — | (1,079 | ) | 0.0001 | ||||||||||||||||||||
Outstanding at December 31, 2019 | 8,274 | 3,655 | 245 | 12,174 | 0.0001 | 4.13 | 1,581,408 | |||||||||||||||||||||
Exercisable as of December 31, 2019 | 955 | — | 145 | 1,100 | 0.0001 | 2.59 | 142,892 | |||||||||||||||||||||
Employees | Senior Management | Consultants | Total | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | US$ | (In years) | (RMB in thousands) | ||||||||||||||||||||||
Outstanding at January 1, 2019 | 7,641 | 4,235 | 438 | 12,314 | 0.0001 | 4.46 | 1,233,028 | |||||||||||||||||||||
Granted | 2,464 | 730 | — | 3,194 | 0.0001 | |||||||||||||||||||||||
Exercised | (1,352 | ) | (710 | ) | (193 | ) | (2,255 | ) | 0.0001 | |||||||||||||||||||
Forfeited | (479 | ) | (600 | ) | — | (1,079 | ) | 0.0001 | ||||||||||||||||||||
Outstanding 2019 | 8,274 | 3,655 | 245 | 12,174 | 0.0001 | 4.13 | 1,581,408 | |||||||||||||||||||||
Outstanding at January 1, 2020 | 8,274 | 3,655 | 245 | 12,174 | 0.0001 | 4.13 | 1,581,408 | |||||||||||||||||||||
Granted | 6,966 | 8,700 | 50 | 15,716 | 2.9007 | |||||||||||||||||||||||
Exercised | (2,784 | ) | (1,643 | ) | (65 | ) | (4,492 | ) | 0.0001 | |||||||||||||||||||
Forfeited | (1,101 | ) | — | — | (1,101 | ) | 0.4234 | |||||||||||||||||||||
Outstanding at December 31, 2020 | 11,355 | 10,712 | 230 | 22,297 | 2.0236 | 5.41 | 12,177,047 | |||||||||||||||||||||
Outstanding | 11,355 | 10,712 | 230 | 22,297 | 2.0236 | 5.41 | 12,177,047 | |||||||||||||||||||||
Granted | 3,927 | — | 21 | 3,948 | 0.0001 | |||||||||||||||||||||||
Exercised | (2,094 | ) | (1,101 | ) | (68 | ) | (3,263 | ) | 0.0001 | |||||||||||||||||||
Forfeited | (472 | ) | — | — | (472 | ) | 0.0001 | |||||||||||||||||||||
Outstanding at December 31, 2021 | 12,716 | 9,611 | 183 | 22,510 | 2.0010 | 5.01 | 6,372,503 | |||||||||||||||||||||
Exercisable at December 31, 2021 | 952 | 950 | 150 | 2,052 | 0.0001 | 3.99 | 606,974 | |||||||||||||||||||||
Net Loss per Share |
Net Loss |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands, except share and per | ||||||||||||
Numerator: | ||||||||||||
Net loss | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | ||||||
Accretion to Pre-IPO Preferred Shares redemption value | (258,554 | ) | (64,605 | ) | — | |||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | (129,244 | ) | — | — | ||||||||
Net loss attributable to noncontrolling interests | — | 13,301 | 14,597 | |||||||||
Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation | (571,548 | ) | (616,325 | ) | (1,288,973 | ) | ||||||
Denominator: | ||||||||||||
Weighted average number of ordinary shares outstanding, basic | 69,938,570 | 233,047,703 | 323,161,680 | |||||||||
Weighted average number of ordinary shares outstanding, diluted | 69,938,570 | 233,047,703 | 323,161,680 | |||||||||
Net loss per share, basic | (8.17 | ) | (2.64 | ) | (3.99 | ) | ||||||
Net loss per share, diluted | (8.17 | ) | (2.64 | ) | (3.99 | ) |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands, except for share and per share data | ||||||||||||
Numerator: | ||||||||||||
Net loss | (1,303,570 | ) | (3,054,017 | ) | (6,808,739 | ) | ||||||
Accretion to redeemable noncontrolling interests | — | (4,292 | ) | — | ||||||||
Net loss attributable to noncontrolling interests | 14,597 | 46,605 | 19,511 | |||||||||
Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation | (1,288,973 | ) | (3,011,704 | ) | (6,789,228 | ) | ||||||
Denominator: | ||||||||||||
Weighted average number of ordinary shares outstanding, basic | 323,161,680 | 345,816,023 | 379,898,121 | |||||||||
Weighted average number of ordinary shares outstanding, diluted | 323,161,680 | 345,816,023 | 379,898,121 | |||||||||
Net loss per share, basic | (3.99 | ) | (8.71 | ) | (17.87 | ) | ||||||
Net loss per share, diluted | (3.99 | ) | (8.71 | ) | (17.87 | ) |
Commitments and Contingencies |
(a) | Commitments |
(b) | Litigation |
Related Party Transactions and Balances |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Purchases of goods and services | 3,741 | 162,992 | 87,597 | |||||||||
Transfer of long-term investments * | 12,750 | 3,250 | 539,646 |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB in thousands | ||||||||||||
Purchases of goods and services | 87,597 | 35,131 | 117,116 | |||||||||
Transfer of/ (acquire of) long-term investments 1 | 539,646 | (110,039 | ) | (40,837 | ) | |||||||
Purchase of noncontrolling interests of Chaodian Inc. (“Chaodian”) 2 | — | 257,288 | — | |||||||||
Capital contribution/Loans to an entity 3 (“Entity”) | — | — | 2,785,314 | |||||||||
Investment income 1 | 73,884 | — | 833 |
December 31, 2020 | December 31, 2021 | |||||||
RMB in thousands | ||||||||
Amount due from related parties | ||||||||
Due from an investment fund 1 | 74,235 | 48,135 | ||||||
Due from the Entity 3 | — | 1,709,689 | ||||||
Due from other investees 4 | 90,497 | 283,492 | ||||||
Total | 164,732 | 2,041,316 | ||||||
Amount due to related parties 5 | — | 216,434 | ||||||
1. | 2018 | 2019 | ||||||
In June 2019, to focus the Company’s efforts and resources on its core businesses, the Company transferred several equity investments of the Group to an investment fund. The Group contributed a total of RMB220.0 million cash into this fund as a limited partner, which is accounted for as an equity method investment. The cost of the equity investments transferred was RMB465.8 million. The consideration was RMB539.6 million, which was based on the estimated fair value of the investments. The difference between the consideration and cost of the investments was recognized as investment income. |
2. | In September 2020, the Company acquired the rest equity interests of Chaodian from certain noncontrolling shareholders, which included some related parties of the Company. The consideration |
3. | The |
4. | The balances as of December 31, 2020 and 2021 mainly represent interest-bearing loans and interest expenses of RMB105.6 and RMB279.2 million related to an |
5. | Amount due to related parties as of December 31, 2021 are primarily considerations related to long-term investments, which are non-trade in nature. |
21. | Segment Information |
Fair Value Measurement |
Restricted Net Assets |
24. | Acquisitions |
Amount | Amortization Period | |||||||
RMB in thousands | ||||||||
Net assets acquired | 189,763 | |||||||
Intangible assets | ||||||||
—Brand | 85,000 | 8 years | ||||||
—Vendor relationship | 75,000 | 10 years | ||||||
—Non-compete clause | 54,000 | 6 years | ||||||
Goodwill | 283,402 | |||||||
Total | 687,165 | |||||||
Amount | ||||
RMB in thousands | ||||
Cash consideration | 369,124 | |||
Share consideration | 243,203 | |||
Fair value of previously held equity interests | 74,838 | |||
Total | 687,165 | |||
Acquisitions (Continued) |
Amount | Amortization | |||||||
RMB in thousands | ||||||||
Net assets acquired | ||||||||
Intangible assets | ||||||||
—Brand | 23,000 | 10 years | ||||||
—User base | 11,000 | 3 years | ||||||
—Copyrights | 269,000 | 8 years | ||||||
—Technology | 4,000 | 3 years | ||||||
—Non-compete clause | 5,000 | 2 years | ||||||
Deferred tax liabilities | (42,133 | ) | ||||||
Goodwill | 281,369 | |||||||
Total | ||||||||
Total purchase price comprised of: |
Amount | ||||||||
RMB in thousands | ||||||||
Cash consideration | ||||||||
Acquisitions (Continued) |
For the Year Ended December 31, | Amortization | |||||||||
2018 | 2019 | |||||||||
Amount | ||||||||||
RMB in thousands | ||||||||||
Net assets acquired | 62,800 | 65,582 | ||||||||
Intangible assets | ||||||||||
—Tradename | 104,000 | — | 5 | |||||||
—User base | 21,500 | — | 3 years | |||||||
—Copyrights | 23,500 | — | 9 months to 3 years | |||||||
—Technology | 9,000 | — | 6 to 8 months | |||||||
Noncontrolling interests | (107,505 | ) | (30,000 | ) | ||||||
Goodwill | 530,482 | 34,418 | ||||||||
Total | 643,777 | 70,000 | ||||||||
For the Year Ended December 31, | ||||||||||||
2020 | 2021 | Amortization Period | ||||||||||
Amount | ||||||||||||
RMB in thousands | ||||||||||||
Net assets acquired | 18,495 | 28,320 | ||||||||||
Intangible assets | ||||||||||||
—Brand | — | 66,000 | 5 | |||||||||
—User base | 700 | 1,500 | 5 | |||||||||
—Copyrights | 49,000 | 2,100 | 3 to years10 | |||||||||
—Technology | — | 3,500 | 5 | |||||||||
—Vendor relationship | 86,000 | — | 10 years | |||||||||
—On-going projects | 69,000 | 64,000 | 3 to 4.5 | |||||||||
—Customer relationship | — | 83,000 | 5 years | |||||||||
—Non-compete clause | — | 28,000 | 6 years | |||||||||
Noncontrolling interests | (44,064 | ) | — | |||||||||
Deferred tax liabilities | (49,140 | ) | — | |||||||||
Goodwill | 283,760 | 477,746 | ||||||||||
Total | 413,751 | 754,166 | ||||||||||
Total purchase price comprised of: | ||||||||||||
Amount | ||||||||||||
RMB in thousands | ||||||||||||
Cash consideration | 295,323 | 244,949 | ||||||||||
Share consideration | 118,428 | 391,244 | ||||||||||
Fair value of previously held equity interests | — | 117,973 | ||||||||||
Total | 413,751 | 754,166 | ||||||||||
Amount | ||||||||||
RMB in thousands | ||||||||||
Cash consideration | 391,071 | 70,000 | ||||||||
Fair value of previously held equity interests | 252,706 | — | ||||||||
Total | 643,777 | 70,000 | ||||||||
Subsequent Events |