Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Phoenix New Media Ltd |
Entity Central Index Key | 0001509646 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity File Number | 001-35158 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Sinolight Plaza |
Entity Address, Address Line Two | Floor 16 |
Entity Address, Address Line Three | No. 4 Qiyang Road |
Entity Address, City or Town | Wangjing, Chaoyang District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100102 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information | |
Contact Personnel Name | Mr. Edward Lu |
Entity Address, Address Line One | Sinolight Plaza |
Entity Address, Address Line Two | Floor 16 |
Entity Address, Address Line Three | No. 4 Qiyang Road |
Entity Address, City or Town | Wangjing, Chaoyang District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100102 |
City Area Code | 86 10 |
Local Phone Number | 6067-6869 |
Class A ordinary shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 264,998,965 |
Class B ordinary shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 317,325,360 |
American Depositary Shares, each representing eight Class A ordinary shares | |
Document Information | |
Title of 12(b) Security | American Depositary Shares, each representing eight Class A ordinary shares |
Trading Symbol | FENG |
Security Exchange Name | NYSE |
Class A ordinary shares, par value $0.01 per share | |
Document Information | |
Title of 12(b) Security | Class A ordinary shares, par value $0.01 per share |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Current assets: | ||||
Cash and cash equivalents | ¥ 341,016 | $ 48,984 | ¥ 174,024 | |
Term deposits and short term investments | 1,271,889 | 182,695 | 912,594 | |
Restricted cash | 82,934 | 11,913 | 269,648 | |
Accounts receivable, net | 638,272 | 91,682 | 484,113 | |
Amounts due from related parties | 59,723 | [1] | 8,579 | 91,228 |
Prepayments and other current assets | 162,868 | 23,394 | 88,963 | |
Total current assets | 2,556,702 | 367,247 | 2,020,570 | |
Non-current assets: | ||||
Property and equipment, net | 101,650 | 14,601 | 95,631 | |
Intangible assets, net | 99,280 | 14,261 | 97,448 | |
Goodwill | 361,074 | 51,865 | 338,288 | |
Available-for-sale debt investments | 2,014,537 | 289,370 | 1,961,474 | |
Equity investments, net | 13,237 | 1,901 | 33,694 | |
Deferred tax assets | 73,688 | 10,585 | 60,160 | |
Operating lease right-of-use assets, net | 85,790 | 12,323 | 0 | |
Other non-current assets | 19,859 | 2,853 | 23,454 | |
Total non-current assets | 2,769,115 | 397,759 | 2,610,149 | |
Total assets | 5,325,817 | 765,006 | 4,630,719 | |
Current liabilities (including amounts of the consolidated VIEs, excluding intercompany amounts, without recourse to the Company of RMB457,498 and RMB611,670 (US$87,861) as of December 31, 2018 and 2019, respectively. Note 1) : | ||||
Short-term bank loans | 267,665 | |||
Accounts payable | 259,928 | 37,336 | 264,753 | |
Amounts due to related parties | 34,223 | [1] | 4,916 | 25,218 |
Advances from customers | 55,900 | 8,030 | 54,601 | |
Taxes payable | 291,511 | 41,873 | 101,386 | |
Salary and welfare payable | 174,902 | 25,123 | 132,316 | |
Deposits in relation to future disposal of investment in Particle | 355,212 | 51,023 | ||
Accrued expenses and other current liabilities | 293,441 | 42,150 | 227,328 | |
Operating lease liabilities | 40,326 | 5,792 | 0 | |
Total current liabilities | 1,505,443 | 216,243 | 1,073,267 | |
Non-current liabilities (including amounts of the consolidated VIEs, excluding intercompany amounts, without recourse to the Company of RMB28,796 and RMB52,087 (US$7,482) as of December 31, 2018 and 2019, respectively. Note 1) : | ||||
Deferred tax liabilities | 197,810 | 28,414 | 140,960 | |
Long-term liabilities | 27,612 | 3,966 | 26,131 | |
Operating lease liabilities | 49,937 | 7,173 | 0 | |
Total non-current liabilities | 275,359 | 39,553 | 167,091 | |
Total liabilities | 1,780,802 | 255,796 | 1,240,358 | |
Commitments and contingencies (Note 23) | ||||
Shareholders’ equity: | ||||
Additional paid-in capital | 1,611,484 | 231,475 | 1,604,588 | |
Statutory reserves | 88,583 | 12,724 | 87,620 | |
Retained earnings | 186,324 | 26,764 | 159,621 | |
Accumulated other comprehensive income | 1,405,808 | 201,931 | 1,188,358 | |
Total Phoenix New Media Limited shareholders’ equity | 3,331,751 | 478,576 | 3,079,727 | |
Noncontrolling interests | 213,264 | 30,634 | 310,634 | |
Total shareholders’ equity | 3,545,015 | 509,210 | 3,390,361 | |
Total liabilities and shareholders’ equity | 5,325,817 | 765,006 | 4,630,719 | |
Class A ordinary shares | ||||
Shareholders’ equity: | ||||
Ordinary shares | 17,499 | 2,514 | 17,487 | |
Class B ordinary shares | ||||
Shareholders’ equity: | ||||
Ordinary shares | ¥ 22,053 | $ 3,168 | ¥ 22,053 | |
[1] | As Tianbo has been consolidated from April 1, 2019, the amounts of due from and due to related parties as of December 31, 2019 did not include those due from and due to Tianbo. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares |
Current liabilities of consolidated VIEs, excluding intercompany amounts, without recourse to the Company | ¥ 611,670 | $ 87,861 | ¥ 457,498 |
Non-current liabilities of consolidated VIEs, excluding intercompany amounts, without recourse to the Company | ¥ 52,087 | $ 7,482 | ¥ 28,796 |
Class A ordinary shares | |||
Ordinary shares, par value | $ / shares | $ 0.01 | ||
Ordinary shares, authorized | 680,000,000 | 680,000,000 | 680,000,000 |
Ordinary shares, issued | 264,998,965 | 264,998,965 | 264,824,592 |
Ordinary shares, outstanding | 264,998,965 | 264,998,965 | 264,824,592 |
Class B ordinary shares | |||
Ordinary shares, par value | $ / shares | $ 0.01 | ||
Ordinary shares, authorized | 320,000,000 | 320,000,000 | 320,000,000 |
Ordinary shares, issued | 317,325,360 | 317,325,360 | 317,325,360 |
Ordinary shares, outstanding | 317,325,360 | 317,325,360 | 317,325,360 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/ (Loss) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | ||
Revenues: | |||||
Total revenues | [1] | ¥ 1,531,062 | $ 219,923 | ¥ 1,377,379 | ¥ 1,575,092 |
Cost of revenues | [1] | (768,302) | (110,360) | (596,548) | (727,197) |
Gross profit | 762,760 | 109,563 | 780,831 | 847,895 | |
Operating expenses : | |||||
Sales and marketing expenses | [1] | (615,783) | (88,452) | (537,562) | (493,664) |
General and administrative expenses | [1] | (271,788) | (39,039) | (162,568) | (146,923) |
Technology and product development expenses | [1] | (242,757) | (34,870) | (204,723) | (192,325) |
Changes in fair value of financial assets-contingent returnable consideration | [1] | 62,051 | 8,913 | ||
Total operating expenses | [1] | (1,068,277) | (153,448) | (904,853) | (832,912) |
Income/(loss) from operations | (305,517) | (43,885) | (124,022) | 14,983 | |
Other income/(loss): | |||||
Interest income | 28,407 | 4,080 | 47,445 | 54,286 | |
Interest expense | (5,089) | (731) | (13,544) | (22,221) | |
Foreign currency exchange (loss)/gain | 7,892 | 1,134 | 6,849 | (23,560) | |
Income/(loss) from equity method investments, net of impairments | (3,447) | (495) | 5,352 | 6,296 | |
Gain on disposal of convertible loans due from a related party | ¥ | 10,565 | ||||
Gain on disposal of available-for-sale debt investments | 1,001,181 | 143,811 | 0 | 0 | |
Others, net | 20,816 | 2,990 | 21,848 | 19,423 | |
Income/(loss) before tax | 744,243 | 106,904 | (45,507) | 49,207 | |
Income tax expense | (20,241) | (2,908) | (20,105) | (14,783) | |
Net income/(loss) | 724,002 | 103,996 | (65,612) | 34,424 | |
Net loss attributable to noncontrolling interests | 3,827 | 550 | 2,390 | 3,048 | |
Net income/(loss) attributable to Phoenix New Media Limited | 727,829 | 104,546 | (63,222) | 37,472 | |
Net income/(loss) | 724,002 | 103,996 | (65,612) | 34,424 | |
Other comprehensive income (net of tax of nil, RMB132,272 and RMB196,617 (US$28,242) for the years ended December 31, 2017, 2018 and 2019, respectively): fair value remeasurement for available- for-sale debt investments | 1,188,762 | 170,755 | 566,320 | 321,538 | |
Other comprehensive loss (net of tax of nil, nil and RMB142,574 (US$20,479) for the years ended December 31, 2017, 2018 and 2019, respectively): reclassification adjustment for disposal of available- for-sale debt investments | (1,008,795) | (144,904) | |||
Other comprehensive (loss)/income (net of nil tax for all years): foreign currency translation adjustment | 37,483 | 5,384 | 51,794 | (49,640) | |
Comprehensive income | 941,452 | 135,231 | 552,502 | 306,322 | |
Comprehensive loss attributable to noncontrolling interests | 3,827 | 550 | 2,390 | 3,048 | |
Comprehensive income attributable to Phoenix New Media Limited | 945,279 | 135,781 | 554,892 | 309,370 | |
Net income/(loss) attributable to Phoenix New Media Limited | ¥ 727,829 | $ 104,546 | ¥ (63,222) | ¥ 37,472 | |
Ordinary Shares | |||||
Net income/(loss) per share: | |||||
Basic | (per share) | ¥ 1.25 | $ 0.18 | ¥ (0.11) | ¥ 0.07 | |
Diluted | (per share) | ¥ 1.25 | $ 0.18 | ¥ (0.11) | ¥ 0.06 | |
Weighted average number of Class A and Class B ordinary shares used in computing net income/(loss) per share: | |||||
Basic | 582,275,800 | 582,275,800 | 581,084,453 | 574,786,887 | |
Diluted | 582,275,800 | 582,275,800 | 581,084,453 | 590,433,907 | |
ADS | |||||
Net income/(loss) per share: | |||||
Basic | (per share) | ¥ 10 | $ 1.44 | ¥ (0.87) | ¥ 0.52 | |
Diluted | (per share) | ¥ 10 | $ 1.44 | ¥ (0.87) | ¥ 0.51 | |
Weighted average number of Class A and Class B ordinary shares used in computing net income/(loss) per share: | |||||
Basic | 72,784,475 | 72,784,475 | 72,635,557 | 71,848,361 | |
Diluted | 72,784,475 | 72,784,475 | 72,635,557 | 73,804,238 | |
Net advertising services | |||||
Revenues: | |||||
Total revenues | [1] | ¥ 1,263,485 | $ 181,488 | ¥ 1,198,271 | ¥ 1,353,480 |
Cost of revenues | (638,160) | (91,666) | (517,533) | (602,945) | |
Gross profit | 625,325 | 89,822 | 680,738 | 750,535 | |
Paid services | |||||
Revenues: | |||||
Total revenues | [1] | 267,577 | 38,435 | 179,108 | 221,612 |
Cost of revenues | (130,142) | (18,694) | (79,015) | (124,252) | |
Gross profit | ¥ 137,435 | $ 19,741 | ¥ 100,093 | ¥ 97,360 | |
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income/ (Loss) (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | |
Other comprehensive income, fair value remeasurement for available-for-sale investments, tax | ¥ 196,617 | $ 28,242 | ¥ 132,272 | ¥ 0 |
Other comprehensive loss, reclassification adjustment for disposal of available-for-sale debt investments, tax | 142,574 | 20,479 | 0 | 0 |
Other comprehensive income, foreign currency translation adjustment, tax | ¥ | 0 | 0 | 0 | |
Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 23): | ||||
Net advertising revenues | 50,700 | 7,283 | 41,482 | 67,393 |
Paid services revenues | 72,454 | 10,407 | 87,131 | 139,149 |
Cost of revenues | (26,728) | (3,839) | (30,167) | (57,057) |
Sales and marketing expenses | (4,157) | (597) | (4,341) | (748) |
General and administrative expenses | ¥ (7,045) | $ (1,012) | ¥ (7,918) | ¥ (6,245) |
Class A ordinary shares | ||||
Number of ordinary shares that each ADS represents | shares | 8 | 8 | 8 | 8 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Ordinary SharesClass A ordinary sharesCNY (¥)shares | Ordinary SharesClass A ordinary sharesUSD ($)shares | Ordinary SharesClass B ordinary sharesCNY (¥)shares | Ordinary SharesClass B ordinary sharesUSD ($)shares | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Statutory reservesCNY (¥) | Statutory reservesUSD ($) | Retained earningsCNY (¥) | Retained earningsUSD ($) | Accumulated other comprehensive incomeCNY (¥) | Accumulated other comprehensive incomeUSD ($) | Noncontrolling interestsCNY (¥) | Noncontrolling interestsUSD ($) |
Balance at Dec. 31, 2016 | ¥ 2,162,428 | ¥ 16,843 | ¥ 22,053 | ¥ 1,555,511 | ¥ 77,946 | ¥ 195,069 | ¥ 298,346 | ¥ (3,340) | ||||||||
Balance (in shares) at Dec. 31, 2016 | shares | 254,909,790 | 254,909,790 | 317,325,360 | 317,325,360 | ||||||||||||
Share-based compensation | 20,852 | 20,852 | ||||||||||||||
Issuance of ordinary shares upon settlement of share-based awards | 11,549 | ¥ 337 | 11,212 | |||||||||||||
Issuance of ordinary shares upon settlement of share-based awards (in shares) | shares | 5,091,696 | 5,091,696 | ||||||||||||||
Appropriation to statutory reserves | 3,291 | (3,291) | ||||||||||||||
Fair value changes of available-for-sale debt investments, net of tax | 321,538 | 321,538 | ||||||||||||||
Foreign currency translation adjustment | (49,640) | (49,640) | ||||||||||||||
Net income/(loss) | 34,424 | 37,472 | (3,048) | |||||||||||||
Balance at Dec. 31, 2017 | 2,501,151 | ¥ 17,180 | ¥ 22,053 | 1,587,575 | 81,237 | 229,250 | 570,244 | (6,388) | ||||||||
Balance (in shares) at Dec. 31, 2017 | shares | 260,001,486 | 260,001,486 | 317,325,360 | 317,325,360 | ||||||||||||
Share-based compensation | 13,989 | 13,989 | ||||||||||||||
Issuance of ordinary shares upon settlement of share-based awards | 3,331 | ¥ 307 | 3,024 | |||||||||||||
Issuance of ordinary shares upon settlement of share-based awards (in shares) | shares | 4,823,106 | 4,823,106 | ||||||||||||||
Appropriation to statutory reserves | 6,383 | (6,383) | ||||||||||||||
Fair value changes of available-for-sale debt investments, net of tax | 566,320 | 566,320 | ||||||||||||||
Foreign currency translation adjustment | 51,794 | 51,794 | ||||||||||||||
Acquisition of a subsidiary | 319,412 | 319,412 | ||||||||||||||
Cumulative effect of initially applying ASC 606 | (24) | (24) | ||||||||||||||
Net income/(loss) | (65,612) | (63,222) | (2,390) | |||||||||||||
Balance at Dec. 31, 2018 | 3,390,361 | ¥ 17,487 | ¥ 22,053 | 1,604,588 | 87,620 | 159,621 | 1,188,358 | 310,634 | ||||||||
Balance (in shares) at Dec. 31, 2018 | shares | 264,824,592 | 264,824,592 | 317,325,360 | 317,325,360 | ||||||||||||
Share-based compensation | 20,221 | 8,041 | 12,180 | |||||||||||||
Issuance of ordinary shares upon settlement of share-based awards | 511 | ¥ 12 | 499 | |||||||||||||
Issuance of ordinary shares upon settlement of share-based awards (in shares) | shares | 174,373 | 174,373 | ||||||||||||||
Appropriation to statutory reserves | 963 | (963) | ||||||||||||||
Fair value changes of available-for-sale debt investments, net of tax | 1,188,762 | $ 170,755 | 1,188,762 | |||||||||||||
Reclassification adjustment for disposal of available-for-sale debt investments, net of tax | (1,008,795) | (1,008,795) | ||||||||||||||
Foreign currency translation adjustment | 37,483 | 5,384 | 37,483 | |||||||||||||
Acquisition of a noncontrolling interest in a subsidiary | (125,889) | (1,644) | (124,245) | |||||||||||||
Acquisition of a subsidiary | 18,522 | 18,522 | ||||||||||||||
Dividends declared and paid | (700,163) | (700,163) | ||||||||||||||
Net income/(loss) | 724,002 | 103,996 | 727,829 | (3,827) | ||||||||||||
Balance at Dec. 31, 2019 | ¥ 3,545,015 | $ 509,210 | ¥ 17,499 | $ 2,514 | ¥ 22,053 | $ 3,168 | ¥ 1,611,484 | $ 231,475 | ¥ 88,583 | $ 12,724 | ¥ 186,324 | $ 26,764 | ¥ 1,405,808 | $ 201,931 | ¥ 213,264 | $ 30,634 |
Balance (in shares) at Dec. 31, 2019 | shares | 264,998,965 | 264,998,965 | 317,325,360 | 317,325,360 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Cash flows from operating activities: | |||||
Net income/(loss) | ¥ 724,002 | $ 103,996 | ¥ (65,612) | ¥ 34,424 | |
Adjustments to reconcile net income/(loss) to net cash provided by/ (used in) operating activities: | |||||
Share-based compensation | 20,221 | 2,905 | 13,989 | 20,852 | |
Provision for allowance for doubtful accounts, including related party amounts of RMB15,757, RMB1,528 and RMB(2,273) (US$(326)) for the years ended December 31, 2017, 2018 and 2019, respectively | 40,154 | 5,768 | 23,999 | 6,632 | |
Depreciation and amortization expense | 77,356 | 11,111 | 32,471 | 35,618 | |
Amortization of the right-of-use assets | 34,976 | 5,024 | |||
Impairment of intangible assets | 5,600 | 804 | |||
(Income)/loss from equity method investments, net of impairments | 3,447 | 495 | (5,352) | (6,296) | |
Deferred income tax | (2,977) | (428) | 286 | (6,153) | |
Gain on disposal of property and equipment | (144) | (21) | (1,318) | (1,279) | |
Loss on disposal of intangible assets | 118 | ||||
Gain on disposal of convertible loans due from a related party | (10,565) | ||||
Changes in fair value of financial assets-contingent returnable consideration | [1] | (62,051) | (8,913) | ||
Gain on disposal of available-for-sale debt investments | (1,001,181) | (143,811) | 0 | 0 | |
Changes in fair value of financial liability | (4,441) | (638) | |||
Foreign currency exchange loss/(gain) | (7,892) | (1,134) | (6,849) | 23,560 | |
Changes in operating assets and liabilities, net of effects of acquisition: | |||||
Accounts receivable | (79,203) | (11,377) | (29,979) | (44,575) | |
Prepayments and other current assets | 20,641 | 2,965 | (13,636) | 5,508 | |
Amounts due from related parties | 33,778 | 4,852 | 37,539 | (22,988) | |
Other non-current assets | 5,902 | 848 | (4,910) | 3,503 | |
Accounts payable | (51,113) | (7,342) | (6,102) | 5,602 | |
Advances from customers | (2,674) | (384) | (15,701) | 37,371 | |
Salary and welfare payable | 14,828 | 2,130 | (19,855) | 4,142 | |
Taxes payable | 18,223 | 2,618 | 8,066 | 16,562 | |
Amounts due to related parties | 15,505 | 2,227 | 2,578 | (4,580) | |
Accrued expenses and other current liabilities | (104,284) | (14,978) | (17,290) | 61,968 | |
Long-term liabilities | (28,978) | (4,162) | 1,417 | 2,991 | |
Net cash provided by/(used in) operating activities | (330,305) | (47,445) | (76,824) | 172,980 | |
Cash flows from investing activities: | |||||
Purchase of property and equipment and intangible assets | (83,837) | (12,042) | (55,950) | (27,800) | |
Placement of term deposits and short term investments | (9,175,619) | (1,317,995) | (3,365,720) | (2,754,930) | |
Maturity of term deposits and short term investments | 8,844,241 | 1,270,396 | 3,199,558 | 2,797,282 | |
Payment for the equity investment measured under fair value | (6,500) | (934) | (6,500) | ||
Loans provided to a related party | (10,000) | (74,000) | |||
Loans repaid by a related party | 74,000 | 53,058 | |||
Proceeds from disposal of convertible loans due from a related party | 111,957 | ||||
Net proceeds from disposal of available-for-sale debt investments | 1,403,046 | 201,535 | |||
Deposits received from proposed buyers of investments in Particle | 357,974 | 51,420 | |||
Cash (paid for)/acquired from acquisition of subsidiaries, net | 121,089 | 17,393 | (62,057) | ||
Net cash (used in)/provided by investing activities | 1,460,394 | 209,773 | (114,712) | (6,390) | |
Cash flows from financing activities: | |||||
Proceeds from exercise of stock options | 511 | 73 | 3,677 | 12,368 | |
Proceeds from short-term bank loans | 250,492 | 328,511 | |||
Repayment of short-term bank loans | (267,886) | (38,479) | (330,000) | (357,113) | |
Dividends paid to shareholders | (703,145) | (101,000) | |||
Cash paid for acquisition of noncontrolling interests | (144,100) | (20,699) | |||
Net cash used in financing activities | (1,114,620) | (160,105) | (75,831) | (16,234) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (35,191) | (5,055) | 11,477 | (8,090) | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (19,722) | (2,832) | (255,890) | 142,266 | |
Cash, cash equivalents and restricted cash at the beginning of the year | 443,672 | 63,729 | 699,562 | 557,296 | |
Cash and cash equivalents at the beginning of the year | 174,024 | 24,997 | 362,862 | 202,694 | |
Restricted cash at the beginning of the year | 269,648 | 38,732 | 336,700 | 354,602 | |
Cash, cash equivalents and restricted cash at the end of the year | 423,950 | 60,897 | 443,672 | 699,562 | |
Cash and cash equivalents at the end of the year | 341,016 | 48,984 | 174,024 | 362,862 | |
Restricted cash at the end of the year | 82,934 | 11,913 | 269,648 | 336,700 | |
Supplemental disclosure of cash flow information: | |||||
Cash paid during the period for income taxes | 1,083 | 156 | 10,649 | 19,424 | |
Cash paid during the period for interest expenses | ¥ 4,026 | $ 578 | 15,221 | ¥ 22,762 | |
Supplemental disclosure of non-cash investing activities: | |||||
Acquisition of a subsidiary included in accrued expenses and other current liabilities | 71,100 | ||||
Acquisition of the investments included in amount due to related parties | ¥ 8,500 | ||||
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Provision for allowance for doubtful accounts | ¥ 40,154 | $ 5,768 | ¥ 23,999 | ¥ 6,632 |
Related Party | ||||
Provision for allowance for doubtful accounts | ¥ (2,273) | $ (326) | ¥ 1,528 | ¥ 15,757 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Organization and Principal Activities Phoenix New Media Limited (“PNM”, or the “Company”) was incorporated in the Cayman Islands on November 22, 2007 by Phoenix Satellite Television (B.V.I.) Holding Limited (the “Parent”), a subsidiary of Phoenix Media Investment (Holdings) Limited (“Phoenix TV”). Phoenix TV, its subsidiaries and variable interest entities (“VIEs”) excluding the Group are collectively referred to as the Phoenix TV Group. As of December 31, 2019, the Company had twelve subsidiaries, four VIEs and twenty-five subsidiaries of VIEs. The Company, its subsidiaries, VIEs and subsidiaries of the VIEs are hereinafter collectively referred to as the “Group”. The Group generates revenues from providing advertising services and paid services, which include paid contents, MVAS, games and others. While the Group’s VIEs hold certain licenses and approvals to operate Internet-related businesses in the People’s Republic of China (“China” or the “PRC”), they are also in the process of applying for licenses for the operations of their businesses, including an Internet audio-visual program transmission license and an Internet news license. Major subsidiaries, VIEs and the subsidiaries of the VIEs as of December 31, 2019 are set out below: Percentage of Direct or Indirect Place of Date of Economic Principal Name Incorporation Incorporation Ownership Activity Direct subsidiaries: Phoenix Satellite Television Information Limited British Virgin Islands (“BVI”) September 1, 1999 100 % Investment holding Phoenix New Media (Hong Kong) Company Limited Hong Kong February 24, 2011 100 % Advertising Phoenix New Media (Hong Kong) Information Technology Company Limited Hong Kong April 22, 2014 100 % Investment holding Fread Limited* Cayman Island May 20, 2014 100 % Investment holding Indirect subsidiaries: Fenghuang On-line (Beijing) Information Technology Co., Ltd. (“Fenghuang On-line”) PRC December 20, 2005 100 % Technical consulting Beijing Fenghuang Yutian Software Technology Co., Ltd. (“Fenghuang Yutian”) PRC June 15, 2012 100 % Software development Fenghuang Feiyang (Beijing) New Media Information Technology Co., Ltd. (“Fenghuang Feiyang”) PRC October 25, 2013 100 % Advertising I Game (Hong Kong) Company Limited Hong Kong June 10, 2014 100 % Game Beijing Fenghuang Borui Software Technology Co., Ltd. (“Fenghuang Borui”) PRC October 13, 2014 100 % Software development Qieyiyou (Beijing) Information Technology Co., Ltd. (“Qieyiyou”) PRC November 28, 2014 100 % Game Tianjin Fengying Hongda Culture Communication Co., Ltd. (“Fengying Hongda”) PRC March 13, 2017 100 % Advertising VIEs: Beijing Tianying Jiuzhou Network Technology Co., Ltd. (“Tianying Jiuzhou”) PRC April 18, 2000 100 % Advertising and paid services Yifeng Lianhe (Beijing) Technology Co., Ltd. (“Yifeng Lianhe”) PRC June 16, 2006 100 % Digital entertainment Beijing Chenhuan Technology Co., Ltd. (“Chenhuan”) PRC June 10, 2014 100 % Game Subsidiaries of VIEs: Beijing Tianying Chuangzhi Advertising Co., Ltd. (“Tianying Chuangzhi”) PRC February 8, 2010 100 % Advertising Beijing Fengyu Network Technology Co., Ltd. (“Fengyu Network”)** PRC June 1, 2012 100 % Digital entertainment Beijing Yitian Xindong Network Technology Co., Ltd. (“Yitian Xindong”) PRC September 05,2008 51 % Digital entertainment Beijing Fenghuang Tianbo Network Technology Co., Ltd. (“Tianbo”) PRC May 31, 2013 50 % Advertising * In January 2018, the name of “I Game Limited” was changed to “Fread Limited”. ** In April 2017, the name of “Beijing Fenghuang Interactive Entertainment Network Technology Co., Ltd.” was changed to “Beijing Fengyu Network Technology Co., Ltd.”. In order to comply with Chinese laws and regulations that prohibit or restrict foreign ownership of companies that operate Internet content, advertising and game businesses, a series of agreements (the “Contractual Agreements”) were entered into among Fenghuang On-line, Tianying Jiuzhou, Yifeng Lianhe and their legal shareholders in 2009, and among Qieyiyou, Chenhuan, and their legal shareholders in 2015. Through the aforementioned activities, Tianying Jiuzhou, Yifeng Lianhe and Chenhuan, are considered as VIEs in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Fenghuang On-line and Qieyiyou are entitled to substantially all the economic risks and rewards associated with the VIEs, and are the primary beneficiaries of the VIEs, respectively. Voting Right Entrustment Agreements Pursuant to the voting right entrustment agreements among the VIEs, their legal shareholders and Fenghuang On-line or Qieyiyou, each legal shareholder of the VIEs agreed to grant a person designated by Fenghuang On-line or Qieyiyou the right to exercise their rights as shareholders, including all voting rights, as well as rights to attend and propose the convening of shareholder meetings. Unless otherwise required by law, the voting right entrustment agreements will remain in effect indefinitely unless both parties agree to terminate the agreement in writing, or unless the Fenghuang On-line or Qieyiyou decide in their discretion to terminate the relevant agreements. Exclusive Equity Option Agreements Under the exclusive equity option agreements among the VIEs, their legal shareholders and Fenghuang On-line or Qieyiyou, legal shareholders of the VIEs irrevocably granted Fenghuang On-line or Qieyiyou or their designated person an irrevocable, unconditional and exclusive option to purchase, to the extent permitted by applicable PRC laws, all of the equity interest in the VIEs from the legal shareholders. The purchase price for the entire equity interest is to be calculated based on the paid-up amount of the relevant equity interest or the minimum price permitted by applicable PRC laws. The exclusive equity option agreement will remain in effect until all of the equity interest in the VIEs has been duly transferred to Fenghuang On-line or Qieyiyou or their designated representatives. Loan Agreements Pursuant to the loan agreements among Fenghuang On-line or Qieyiyou, and legal shareholders of their VIEs, Fenghuang On-line or Qieyiyou granted interest-free loans to the legal shareholders of the VIEs for an amount that is equal to their respective capital contribution in the VIEs. The loans can be repaid only with proceeds from the sale of all of the respective shareholder’s equity interest in the applicable VIE to Fenghuang On-line or Qieyiyou, or their designated representatives pursuant to the applicable exclusive equity option agreement. The term of each loan is ten years, and may be extended upon mutual agreement of the parties. On December 31, 2019, Tianying Jiuzhou and Fenghuagn On-line entered into a supplemental agreement to extend the loan for a term of ten years upon expiration of the original loan agreement on the same day. Equity Pledge Agreements Under the equity pledge agreement among the VIEs, their legal shareholders and Fenghuang On-line or Qieyiyou, the legal shareholders of the VIEs have pledged their equity interests in the VIEs to Fenghuang On-line or Qieyiyou to secure the performance of the obligations of the VIEs and their legal shareholders under the applicable exclusive technical licensing and services agreement, voting right entrustment agreement, exclusive equity option agreement and loan agreement. The equity pledge agreements will remain in effect until the secured obligations have been fully performed by the VIEs or released by Fenghuang On-line or Qieyiyou. Exclusive Technical Licensing and Service Agreements Under the exclusive technical licensing and service agreements between Fenghuang On-line or Qieyiyou and each of the VIEs, Fenghuang On-line or Qieyiyou has the exclusive right to provide technical and consulting services to their respective VIEs. The VIEs have agreed to pay a service fee to Fenghuang On-line or Qieyiyou equal to a certain percentage of their respective annual revenues plus a special service fee for certain services rendered by Fenghuang On-line or Qieyiyou at the request of the VIEs. The technical service agreements also transfer all of the economic benefit of intellectual property created by the VIEs to Fenghuang On-line or Qieyiyou. Each exclusive technical services agreement will remain in effect indefinitely and can be terminated only by Fenghuang On-line or Qieyiyou unless otherwise required by law. The Group has evaluated the relationship among the Company, Fenghuang On-line or Qieyiyou and the VIEs in accordance with U.S. GAAP. Pursuant to the voting right entrustment agreements, the Company has obtained power, as granted to the legal shareholders by the applicable PRC law and under the articles of association of the VIEs, to direct all significant activities of the VIEs, which include but are not limited to budgeting, financing, and making other strategic and operational decisions, and will significantly impact the VIEs’ economic performance. Pursuant to the exclusive technical licensing and service agreements and other agreements, the Company has the right to receive benefits of the VIEs in the form of technical service fees, which could potentially be significant to the VIEs’ net income. In addition, the Company has the right to receive all the residual assets of the VIEs through exercise of the exclusive equity option agreements. As a result, the Company, through Fenghuang On-line and Qieyiyou, is considered the primary beneficiary of the VIEs and therefore includes the VIEs’ assets, liabilities and operating results in its consolidated financial statements. 1. Organization and Principal Activities (Continued) In January 2015, in order to leverage the Group’s brand, content platform and large user base to expand into more entertainment related businesses, the Group established a new subsidiary Meowpaw with share capital of RMB1.0 million. Meowpaw is engaged in creating intellectual properties, related games, books, movies and animations, etc. The Group held 75% of the shares, and the noncontrolling shareholder, who was an individual, held the rest of 25%. Meowpaw’s share capital was not sufficient to support its operations. In addition to the capital injection, as of December 31, 2018 and 2019, the Group has a long-term loan to Meowpaw of RMB79.0 million and RMB79.0 million (US$11.5 million), respectively, to support Meowpaw’s operations. In accordance with ASC 810-10 Variable Interest Entities The Company has the power to direct the activities of all the VIEs, including the VIEs aforementioned in the Contractual Agreements and Meowpaw, and can freely have assets transferred out of all the VIEs without any restrictions. Only the registered capital and PRC statutory reserves of the consolidated VIEs amounted to RMB32.8 million (US$4.7 million) as of December 31, 2019 can be used to solely settle obligations of the VIEs and subsidiaries of the VIEs. As all the VIEs and subsidiaries of the VIEs are incorporated as limited liability companies under the PRC Company Law, the creditors of the VIEs and subsidiaries of the VIEs do not have recourse to the general credit of the Company. The amounts of the consolidated VIEs’ current liabilities without recourse to the Company disclosed on the face of the consolidated balance sheets have excluded the amounts due to inter-company entities. The following tables set forth the summarized assets, liabilities, results of operations and cash flows of the consolidated VIEs (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Current assets 979,025 1,223,454 175,738 Non-current assets 530,118 588,327 84,508 Total assets 1,509,143 1,811,781 260,246 Accounts payable 135,407 132,690 19,060 Amounts due to related parties 11,531 24,194 3,475 Amounts due to inter-company entities 631,392 1,030,231 147,983 Advances from customers 31,686 56,212 8,074 Taxes payable 48,697 82,475 11,847 Salary and welfare payable 40,949 82,095 11,792 Accrued expenses and other current liabilities 189,228 234,004 33,613 Current liabilities 1,088,890 1,641,901 235,844 Non-current liabilities 28,796 52,087 7,482 Total liabilities 1,117,686 1,693,988 243,326 For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenues 769,943 591,495 889,084 127,709 Net loss (7,760 ) (112,146 ) (174,661 ) (25,089 ) For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net cash (used in)/provided by operating activities (3,950 ) 100,256 (227,916 ) (32,738 ) Net cash provided by/(used in) investing activities 65,600 (164,190 ) 129,697 18,630 Net cash (used in)/provided by financing activities (2,000 ) — 224,299 32,219 1. Organization and Principal Activities (Continued) As of December 31, 2019, the total assets for the consolidated VIEs mainly comprised of cash and cash equivalents, term deposits and short term investments, accounts receivable, prepayments and other current assets, amounts due from related parties, intangible assets, goodwill and property and equipment. There was no pledge or collateralization of these assets. Unrecognized revenue-producing assets that are held by the VIEs and subsidiaries of the VIEs comprise the Internet Content Provision License, the Online Culture Operating Permit, the Internet Publication License, the Permit for Production and Operation of Radio and TV Programs, the Value-added Telecommunications Business Operating License, trademark, and domain name. Recognized revenue-producing assets that are held by the VIEs and subsidiaries of the VIEs comprise property and equipment and operating rights for licensed games. As of December 31, 2019, the total liabilities for the consolidated VIEs mainly comprised accounts payable, amounts due to related parties, amounts due to inter-company entities, advances from customers, salary and welfare payable, taxes payable, accrued expenses and other current liabilities and non-current liabilities. After netting off the amount of inter-company transactions between the consolidated VIEs and other subsidiaries within the Group, the net fee paid or payable to other subsidiaries of the Group by the consolidated VIEs were RMB13.7 million, RMB31.7 million and RMB3.8 million (US$0.6 million) for the years ended December 31, 2017, 2018 and 2019, respectively. The balances and transactions of the consolidated VIEs were reflected in the Company’s consolidated financial statements with inter-company transactions eliminated. It is possible that the Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote, on March 15, 2019, the National People’s Congress promulgated the Foreign Investment Law or the FIL, which took effect on January 1, 2020, and replaced the existing laws regulating foreign investment in China, namely, the PRC Equity Joint Venture Law, the PRC Cooperative Joint Venture Law and the Wholly Foreign-owned Enterprise Law, or Old FIE Laws, together with their implementation rules and ancillary regulations. Meanwhile, the Implementation Rules to the Foreign Investment Law |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies | 2. Principal Accounting Policies (a) Basis of presentation, principles of consolidation, and cost allocations The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and the subsidiaries of the VIEs. The consolidated financial statements have been prepared in accordance with U.S. GAAP and on a going concern basis. All significant transactions and balances among the Company, its subsidiaries, its VIEs and the subsidiaries of the VIEs have been eliminated upon consolidation. The Company consolidates the VIEs as required by Accounting Standards Codification (“ASC”) 810 Consolidation 2. Principal Accounting Policies (Continued) (a) Basis of presentation, principles of consolidation, and cost allocations (continued) The Group and Phoenix TV Group have engaged in various mutual cooperation activities in content, branding, promotions, technical support and corporate management. The Group and Phoenix TV Group entered into a Program Resource License Agreements and a Program Text/Graphics Resource License Agreements, or the Agreements, effective as of May 27, 2016 and expired on May 26, 2019, to grant the Group the license with priority over any third party to broadcast Phoenix TV Group’s copyrighted video content from three television channels of Phoenix TV Group and a non-exclusive license to use Phoenix TV Group’s copyrighted text and graphics. The fees payable to Phoenix TV Group by the Group are RMB10.0 million for the first year of the Agreements, which would incrementally increase by 15% for each subsequent year of the Agreements. The Agreements do not grant the Group the right to sublicense Phoenix TV Group’s copyrighted content to third parties. As such, the Group does not incur revenue sharing fee to Phoenix TV Group accordingly. After the expiration of the Agreements in May 2019, the Group entered into a supplemental agreement with Phoenix TV Group to extend the term of the Agreements to January 14, 2020. Subsequently, the Group entered into a program resource license and cooperation agreement with Phoenix TV Group on January 15, 2020, or the 2020 Program Resource License and Cooperation Agreement, to continue to use Phoenix TV Group’s copyrighted video content. The annual license fees payable to Phoenix TV Group under the 2020 Program Resource License and Cooperation Agreement are RMB2.0 million plus 50% of the revenue generated from the use of the licensed program resource in excess of RMB2.0 million. The 2020 Program Resource License and Cooperation Agreement have a term of two years and may be extended prior to expiration. The Group and Phoenix TV Group entered into new trademark license agreements in December 2017, which became effective on December 8, 2017 and will expire on December 7, 2020. Compared to the original trademark license agreements, effective from November 2009 and expired in December 2017, the new trademark license agreements no longer allow the Group to use the double-phoenix logo of Phoenix TV Group on a stand-alone basis and have increased the annual license fee payable to Phoenix TV Group from a total of US$10,000 to the greater of 2% of the annual revenues of Tianying Jiuzhou and Yifeng Lianhe or US$100,000 for each company. Apart from the above cooperation agreements, Phoenix TV Group also paid certain expenses on behalf of the Group, such as data line usage and other general and administrative expenses, which the Group needed to settle with Phoenix TV Group based on the actual amount, and were recorded in the consolidated statements of comprehensive income/(loss). The Group also earned and recorded advertising revenues from Phoenix TV Group by providing joint advertising campaign solutions together with Phoenix TV Group to Phoenix TV Group’s advertisers or from providing the advertising and promotion services directly to Phoenix TV Group by entering into advertising-for-advertising barter transactions. (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Group bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. (c) Business combinations and noncontrolling interests The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 Business Combinations 2. Principal Accounting Policies (Continued) (c) Business combinations and noncontrolling interests (continued) In a business combination achieved in stages, the Group re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of comprehensive income/(loss). When there is a change in ownership interests or a change in contractual arrangements that results in a loss of control of a subsidiary, the Group deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Group’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly, to the Group. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Group, the noncontrolling interest is classified as mezzanine equity. Transactions with changes in the Group’s ownership interest while it retains its controlling financial interest in its subsidiary shall be accounted for as equity transactions. Therefore, no gain or loss shall be recognized in the consolidated statements of comprehensive income/(loss). The carrying amount of the noncontrolling interest shall be adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted shall be recognized in equity attributable to the Group. Consolidated net income/(loss) in the consolidated statements of comprehensive income/(loss) includes net income or loss attributable to noncontrolling interests. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to the subsidiaries’ shares, are also recorded as noncontrolling interests in the Group’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The Company’s operations in the PRC and other regions use their respective currencies as their functional currencies. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use U.S. dollars or Hong Kong dollars as their functional currency, have been translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”). Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and have been shown as a component of other comprehensive loss or income in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income/(loss). Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies on the balance sheet date are remeasured at the applicable rates of exchange in effect on that date. Foreign currency exchange gain or loss resulting from the settlement of such transactions and from remeasurement at period-end is recognized in foreign currency exchange gain or loss in the consolidated statements of comprehensive income/(loss). (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB6.9618 on December 31, 2019 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. 2. Principal Accounting Policies (Continued) (f) Fair value of financial instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2— Include other inputs that are directly or indirectly observable in the marketplace Level 3— Unobservable inputs which are supported by little or no market activity U.S. GAAP describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. In some circumstances, a combined approach of the aforementioned three approaches may be used to measure the fair values. The Group’s financial instruments include cash equivalents, term deposits, short term investments, restricted cash, accounts receivable, amounts due from related parties, prepayments and other current assets, financial assets — contingent returnable consideration, available-for-sale debt investments, equity investments without readily determinable fair values, forward contract, accounts payable, amounts due to related parties, salary and welfare payable, accrued expense, short-term bank loans and other current liabilities and other non-current assets. Refer to Note 21 for details. (g) Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits, time deposits and highly liquid investments placed with banks or other financial institutions, which are unrestricted to withdrawal or use, and which have original maturities of three months or less. (h) Term deposits, short term investments Term deposits represent term deposits placed with banks with original maturities of more than three months and up to one year. Short term investments represent investments in financial instruments with a variable interest rate indexed to performance of underlying assets and investments that the Group has positive intent and ability to hold to maturity, all of which are with original maturity of less than 12 months. In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Please see Note 21 for additional information. (i) Restricted cash Restricted cash represents deposits placed as security for banking facilities granted to the Group, and deposits placed in accounts co-managed with third-parties related to the real estate services, which are restricted to withdrawal or usage. 2. Principal Accounting Policies (Continued) (j) Accounts receivable, net Accounts receivable is the Group’s right to consideration that is unconditional, and the right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. The carrying value of accounts receivable is reduced by an allowance that reflects the Group’s best estimate of the amounts that will not be collected. Many factors are considered in estimating the general allowance, including but not limited to reviewing accounts receivable balances, historical bad debt rates, aging analysis, customer credit worthiness and industry trend analysis. The Group also makes the specific allowance if there is evidence showing that the receivable is unlikely to be collected. Accounts receivable balances are written off against the allowance when they are determined to be uncollectible. All accounts receivable balances are presented as accounts receivables, net in the consolidated balance sheets. Refer to Note 5 for details. (k) Convertible loans due from a related party Convertible loans due from a related party represent short-term loans advanced to a related party of which the Group may at its option to convert all or a portion into preferred shares. The Group has determined that the convertible loans are not within the scope ASC 320 Investment — debt and equity securities Receivables (l) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated over the following estimated useful lives on a straight-line basis: Estimated Useful Lives Computers 3 years Equipment, furniture and motor vehicles 5 years Leasehold improvements Lesser of lease terms or the estimated useful lives of the assets Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss). (m) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets mainly consist of computer software purchased from unrelated third parties, operating rights for licensed games, licensed copyrights of reading content, audio content, user base, and trademark and domain names. Intangible assets are stated at cost less impairment and accumulated amortization, which is computed using the straight-line method over the estimated useful lives of the assets. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Estimated Useful Lives Computer software 5 years Trademark and domain names 10 years Licensed copyrights of reading content Lesser of the licensed period or 5 years Audio content 5 years User base 0.8 years License and licensed games Estimated life cycle The Group amortizes the licensed copyrights in “cost of revenues” on a straight-line basis. 2. Principal Accounting Policies (Continued) (n) Available-for-sale debt investments In accordance with ASC 320 Investments-Debt and Equity Securities (o) Equity investments Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323 Investments-Equity Method and Joint Ventures The Group adopted ASU 2016-1 Recognition and Measurement of Financial Assets and Financial Liabilities Investments-Other: Cost Method Investments An impairment loss on the equity investments is recognized in the consolidated statements of comprehensive income/(loss) when the decline in value is determined to be other-than-temporary. 2. Principal Accounting Policies (Continued) (p) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Group first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the quantitative impairment test is performed. In performing the two-step quantitative impairment test, the first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, allocation of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment to have a significant (q) Impairment of long-lived assets Long-lived assets such as property and equipment and intangible assets are reviewed for impairment whenever events or changes in the circumstances indicate that the carrying value of an asset may not be recoverable. When these events occur, the Group assesses the recoverability of the long-lived assets by comparing the carrying amount to the estimated future undiscounted cash flows associated from the use of the asset and its eventual disposition, and recognize an impairment of long-lived assets when the carrying value of such assets exceeds the estimated future undiscounted cash flows such assets is expected to generate. If the Group identifies an impairment, the Group reduces the carrying amount of the assets or asset group to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. 2. Principal Accounting Policies (Continued) (r) ASC 606 Revenue from Contracts with Customers On January 1, 2018, the Group adopted ASC 606 Revenue from Contracts with Customers Revenue Recognition In 2019, the Group re-classified paid services revenues (see Note 2(s)). For comparison purposes, the revenues from paid services for the years of 2017 and 2018 have been retrospectively re-classified. The following table presents the Group’s revenues disaggregated by products and services (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net advertising revenues 1,353,480 1,198,271 1,263,485 181,488 Paid services revenues 221,612 179,108 267,577 38,435 Revenues from paid contents 77,675 95,044 205,360 29,498 Revenues from games 27,463 14,727 14,169 2,035 Revenues from MVAS 108,567 55,037 18,499 2,657 Revenues from others 7,907 14,300 29,549 4,245 Total 1,575,092 1,377,379 1,531,062 219,923 Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Contract asset represents the Group’s right to consideration in exchange for goods or services that it has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. Contract assets as of December 31, 2018 and 2019 were not material. If a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional (that is, a receivable), before the Group transfers a good or service to the customer, the Group shall present the contract as a contract liability when the payment is made or the payment is due (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which it has received consideration (or an amount of consideration is due) from the customer. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period and primarily consist of fees received from advertisers. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Contract liability is presented as advances from customers in the balance sheet. Revenues recognized for the years ended December 31, 2018 and 2019 that were included in the contract liability balance at the beginning of the period were RMB47.7 million and RMB44.7 million (US$6.4 million), respectively. 2. Principal Accounting Policies (Continued) (r) ASC 606 Revenue from Contracts with Customers (continued) The assets recognized for costs incurred to fulfill contracts shall be amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As of December 31, 2018 and 2019, the costs incurred to fulfill contracts recognized as assets were immaterial. Practical expedients The Group has used the following practical expedients as allowed under ASC 606: i. The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed as substantially all of the Group’s contracts have duration of one year or less. ii. Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. iii. The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. (s) Revenue recognition According to ASC 606, revenue is recognized when control of the promised services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those services. The recognition of revenues involves certain management judgments, including the estimation of the fair value of the noncash transaction, estimated lives of virtual items purchased by game players, and volume sales rebates. The Group does not believe that significant management judgments are involved in revenue recognition, but the amount and timing of the Group’s revenues could be different for any period if management made different judgments or utilized different estimates. The Group adopts the five-step model for recognizing revenue from contracts with customers: Step 1: Identify the contract(s) with a customer, Step 2: Identify the performance obligations in the contract, Step 3: Determine the transaction price, Step 4: Allocate the transaction price to the performance obligations in the contract, Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. (i) Advertising revenues are derived principally from advertising contracts with customers where the advertisers pay to place their advertisements on the Group’s ifeng.com, mobile Internet website i.ifeng.com and its mobile applications in different formats over a particular period of time. Such formats generally include but are not limited to banners, news feed, text-links, videos, logos, buttons and rich media. The Group’s performance obligations are to place the customers’ advertisements on different spots, in different formats and at different times. The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where standalone selling price is not directly observable, the Group generally estimates selling prices based on the publicly published advertising rate card, times the relevant discount rates, taking into considerations of the historical trend, the pricing of advertising areas sold with similar popularities, advertisements with similar formats and quoted prices from competitors, and other relevant market conditions. 2. Principal Accounting Policies (Continued) (s) Revenue recognition (continued) (i) The Group recognizes revenue on the satisfied performance obligations and defers the recognition of revenue for the estimated value of the undelivered elements until the remaining performance obligations have been satisfied. When all of the elements within an arrangement are delivered uniformly over the agreement period, the revenues are recognized on a straight-line basis over the contract period. Currently the advertising business has three main types of pricing models, consisting of the Cost Per Day (“CPD”) model, the Cost Per Impression (“CPM”) model, and the Cost Per Click (“CPC”) model. CPD model Under the CPD model, a contract is signed to establish a fixed price for the advertising services to be provided over a period of time. Given the advertisers benefit from the displayed advertising evenly, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. CPM model Under the CPM model, the unit price for each qualifying display is fixed and stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Given that the fees are priced consistently throughout the contract and the unit prices are consistent with the Group’s pricing practices with similar customers, the Group recognizes revenue based on the fixed unit prices and the number of qualifying displays upon occurrence of display, provided and all revenue recognition criteria have been met. CPC model Under the CPC model, there is no fixed price for advertising services stated in the contract with the advertiser and the unit price for each click is auction-based. The Group charges advertisers on a per-click basis, when the users click on the advertisements. Given that the fees are priced consistently throughout the contract and the unit prices are consistent with the Group’s pricing practices with similar customers, the Group recognizes revenue based on qualifying clicks and the unit price upon the occurrence of a click, provided all revenue recognition criteria have been met. Agency service fees to third-party advertising agencies Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume of each individual agent with reference to their historical results. The sales rebate will reduce revenues recognized. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting sales rebates and net of value-added tax (“VAT”) and related surcharges. The Group believes that there will not be significant changes to its estimates of variable consideration. The Group has estimated and recorded RMB223.3 million, RMB215.2 million and RMB180.7 million (US$26.0 million) in agency service fees to third-party advertising agencies for the years ended December 31, 2017, 2018 and 2019, respectively. Noncash transactions The Group enters into contracts with certain customers involving consideration in a form other than cash. The noncash consideration (or promise of noncash consideration) shall be measured at fair value. If the Group cannot reasonably estimate the fair value of the noncash consideration, it shall measure the consideration indirectly by reference to the standalone selling price of the goods or services promised to the customer (or class of customer) in exchange for the consideration. The Group recognized revenue from noncash transactions involving exchanging advertising services for advertisement, content, technical, application pre-installation services and others amounted to RMB4.4 million, RMB17.8 million and RMB8.7 million (US$1.3 million) for the years ended December 31, 2017, 2018 and 2019, respectively, of which RMB4.7 million and RMB7.4 million (US$1.1 million) representing revenue from advertising-for-advertising barter transactions for the years ended December 31, 2018 and 2019, respectively. 2. Principal Accounting Policies (Continued) (s) Revenue recognition (continued) (ii) Paid services revenues Prior to 2019, paid services revenues comprised of (i) revenues from digital entertainment, which included MVAS and digital reading, and (ii) revenues from games and others, which included web-based games, mobile games, content sales, and other online and mobile paid services through the Group’s own platforms. Beginning from January 1, 2019, paid services revenues have been re-classified and now comprise of (i) revenues from paid contents, which includes digital reading, audio books, paid videos, and other content-related sales activities, (ii) revenues from games, which includes web-based games and mobile games, (iii) revenues from MVAS, and (iv) revenues from others. For comparison purposes, the revenues from paid services for the years of 2017 and 2018 have been retrospectively re-classified. Paid contents Paid contents revenues mainly comprise of revenues generated from digital reading, audio books, paid videos, and other content-related sales activities. Digital reading Digital reading revenues are derived from providing fee-based internet literatures from writers and digital format books licensed from third-party publishers to customers on both of the Group’s PC and mobile platforms, and on third-party platforms. Most revenues generated from digital reading are recorded on a gross basis and recognized evenly over the subscription period, or in the period in which a pay-per-view service is provided, as the Group is responsible for providing the desired services to the customers and has primary responsibility and broad discretion to establish price, and therefore the Group is considered the primary obligor in these transactions. Digital reading revenues generated from third-party platforms are recorde |
Certain Risks and Concentration
Certain Risks and Concentration | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Certain Risks and Concentration | 3. Certain Risks and Concentration (a) Major customers A significant portion of the Group’s MVAS is generated through and from China Mobile (“CMCC”), which is also a related party as CMCC is a shareholder of Phoenix TV. CMCC is a major mobile network operator in the PRC. It provides billing, collection and transmission services related to the paid services offered by most of the wireless service and content providers in the PRC. The revenues generated through and from CMCC for the years ended December 31, 2017, 2018 and 2019 were RMB172.2 million, RMB113.9 million and RMB94.5 million (US$13.6 million), respectively, which accounted for 10.9%, 8.3% and 6.2% of the respective years’ total revenues. The amounts due from CMCC as of December 31, 2018 and 2019 were RMB59.9 million and RMB46.1 million (US$6.6 million), respectively, which is included on the consolidated balance sheets as “Amounts due from related parties”. Except for CMCC as discussed above, (b) Credit risk The Group’s credit risk arises from cash and cash equivalents, term deposits, short term investments and restricted cash as well as credit exposures to receivables due from its customers, related parties and other parties. The Group expects that there is no significant credit risk associated with cash and cash equivalents, term deposits, short term investments and restricted cash for short-term bank loans which were held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries, VIEs and the subsidiaries of the VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to its customers, related parties and other parties, except for CMCC as discussed above. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. 3. Certain Risks and Concentration (continued) (c) Currency convertibility risk The Group’s operating transactions and its assets and liabilities are mainly denominated in RMB. RMB is not freely convertible into foreign currencies. The value of the RMB is subject to changes by the central government policies and to international economic and political developments. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by PBOC. Remittances in currencies other than RMB by the Group in the PRC must be processed through PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. (d) PRC regulations The Group is exposed to certain macro-economic and regulatory risks and uncertainties in the Chinese market. These uncertainties affect the ability of the Group to provide online advertising, mobile and Internet related services through Contractual Arrangements in the PRC since these industries remains highly regulated. The Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate these industries. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Group’s ability to conduct business in the PRC. The PRC government may also require the Group to restructure its operations entirely if it finds that its Contractual Arrangements do not comply with applicable laws and regulations. It is unclear how a restructuring could impact the Group’s business and operating results, as the PRC government has not yet found any such Contractual Arrangements to be in noncompliance. However, any such restructuring may cause significant disruption to the Group’s business operations. In addition, the Group is required to obtain certain licenses to operate the Internet information services. As of the date of the annual report, the Group is in the process of applying for licenses for the certain operations of the businesses, including an Internet audio-visual program transmission license and an Internet news license. In 2019, approximately 88.9% of the Group’s total revenues were derived from business related to the above licenses. Without these licenses, the PRC government may order the Group to cease its services, which may cause significant disruption to the Group’s business operations. Recently, regulatory authorities in China have increased their supervision of content platforms similar to the Group’s websites and mobile applications. In addition to the contents that are considered to be violating PRC laws and regulations, such oversight tends to pay more attention to content that is or may be deemed misleading, obscene, pornographic, detrimental, and/or contradicting to social values and moral prevailing in China. The Group may face regulatory inquiries and oral warnings made by relevant regulatory authorities from time to time. The Group may also be required to limit or even suspend its services due to regulatory requirements or sanctions. Any of these events could severely impair the attractiveness of the Group’s applications and websites to users, reduce its user traffic and affect its revenue, and its business, financial condition and results of operation may be materially adversely affected. (e) Investments risk The Group has made and may undertake in the future investments in subsidiaries, affiliates and other business alliance partners in various Internet-related businesses. It is uncertain whether the Group will receive the expected benefits from these investments, due to any adverse regulatory changes, worsening of economic conditions, increased competition or other factors that may negatively affect the related business activities. Some of the businesses the Group has invested in are subject to intensive regulation. Any adverse regulatory change may have a material adverse impact on the business and financial performance of the subsidiaries, affiliates and other business alliance partners. Furthermore, unanticipated costs and liabilities may be incurred in connection with those business strategies, including liabilities from the claims related to the businesses prior to the business alliances, and cost from actions by regulatory authorities. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | 4. Acquisition Acquisition of Yitian Xindong In December 2018, the Group entered into an agreement with Telling Telecommunication Co., Ltd. (“Telling Telecom”), the sole shareholder of Yitian Xindong, to acquire 25.5% equity interest in Yitian Xindong (the “Acquisition”) for an aggregate purchase consideration of RMB144.1 million, subject to certain price adjustment mechanisms based on Yitian Xindong’s operating and financial performance in 2019 and 2020 (the “Performance Targets”). If any of Yitian Xindong’s Performance Targets in either 2019 or 2020 is not met, Telling Telecom will return part of the purchase consideration to the Group, which resulted in the recognition of a financial assets derived from the contingent returnable consideration. Yitian Xindong owns the Tadu APPs, which include but are not limited to Tadu Literature Application (“塔读文学”). Concurrently, Telling Telecom also transferred another 25.5% equity interest in Yitian Xindong to Shenzhen Bingruixin Technology Co., Ltd. (“Bingruixin”), a third party, Bingruixin granted an option that allowed the Group to acquire the 25.5% equity interest from Bingruixin for RMB144.1 million before March 15, 2019, subject to the above mentioned same price adjustment mechanisms based on Yitian Xindong’s operating and financial performance in 2019 and 2020 (the “Call Option”). Concurrent with the Acquisition, Bingruixin agreed to entrust voting rights with respect to the 25.5% equity interest in Yitian Xindong to the Group (the “Voting Rights Entrustment”) from December 28, 2018 to March 15, 2019. Because of the Voting Rights Entrustment, the Group concluded that it gained control over Yitian Xindong and consolidated Yitian Xindong upon completion of the Acquisition. On December 28, 2018, the Group completed the Acquisition and consolidated Yitian Xindong thereafter. Therefore, the Group had consolidated the balance sheet of Yitian Xindong as of December 31, 2018 and the operating results of Yitian Xindong for the 3-day period from December 29, 2018 to December 31, 2018, and recognized a noncontrolling interest for the 74.5% equity interest of Yitian Xindong owned by other shareholders. The allocation of the purchase price as of the date of acquisition was summarized as follows (in thousands): Amount RMB Amortization Period Purchase consideration 144,100 Net assets acquired, excluding intangible assets and the related deferred tax (Note a) 21,803 Deferred tax assets 8,576 Less: valuation allowance (8,576 ) Amortizable intangible assets —User base 5,100 0.8 year —Trademark and domain name 38,300 10 years —Licensed copyrights of reading content 49,200 Not exceeding 3 years, with a weighted-average amortization period of 2.34 years Goodwill (Note b) 338,288 Financial assets — contingent returnable consideration (Note c) 18,211 Deferred tax liabilities (Note d) (7,390 ) Noncontrolling interests (319,412 ) Total 144,100 Note: (a) Net assets acquired included cash and cash equivalents with an amount of RMB10.9 million (US$1.6 million). (b) Goodwill arising from this acquisition was attributable to the synergies between Yitian Xindong and the Group’s multiple business streams. The goodwill recognized was not expected to be deductible for income tax purpose. (c) The financial assets represented the fair value of the Group’s right to receive the contingent returnable consideration, subject to certain price adjustment mechanisms based on Yitian Xindong’s operating and financial performance in 2019 and 2020. (d) Deferred tax liabilities represented the tax effect of the amortizable intangible assets from the Acquisition. 4. Acquisition (Continued) Acquisition of Yitian Xindong (continued) As of December 31, 2018, the Group had paid RMB73.0 million in cash for the Acquisition and the remaining consideration of RMB71.1 million was paid within six months after the Acquisition. The Group had also received deposits of RMB14.2 million from Telling Telecom for the price adjustment mechanisms mentioned above as of December 31, 2018, which was RMB16.7 million (US$2.4 million) as of December 31, 2019. See Note 14. Neither the results of operations since the acquisition dates nor the pro forma results of operations of Yitian Xindong were presented because the effects of the business combination were not significant to the Company’s consolidated results of operations. On March 1, 2019, the Group exercised the Call Option and acquired another 25.5% equity interest in Yitian Xindong from Bingruixin with a consideration of RMB144.1 million (US$20.7 million). As a result, the Group currently holds 51.0% equity interest in and a 51.0% voting rights of Yitian Xindong and continues to consolidate Yitian Xindong’s financial statements. As this transaction only leads to an increase in the Group’s ownership interest in Yitian Xindong and the Group retains its controlling financial interest in Yitian Xindong, this acquisition of a noncontrolling interest was accounted for as equity transactions, resulting in a decrease in noncontrolling interest of RMB124.2 million (US$17.8 million) and no gain or loss recognized in the consolidated statements of comprehensive income/(loss) during the year ended December 31, 2019. The revenues of Yitian Xindong for the year ended December 31, 2019 were RMB204.0 million (US$29.3 million) and the net income of Yitian Xindong for the year ended December 31, 2019 were RMB2.5 million (US$0.4 million), which should mean that Yitian Xindong’s Performance Targets in 2019 as specified in the Group’s agreement with Telling Telecom in connection with its acquisition of Yitian Xindong were not met and the Group should have the right to receive a contingent returnable consideration of RMB170.6 million (US$24.5 million) from Telling Telecom. However, based on current communication with Telling Telecom, the Group estimated that the probability of successfully collecting the contingent returnable consideration of RMB170.6 million would be 60% as there were still some disputes between Telling Telecom and the Group, and as a result, the fair value of the Group’s right to receive the contingent returnable consideration as of December 31, 2019 were RMB98.5 million (US$14.1 million), with the changes in fair value of RMB62.1 million (US$8.9 million) recognized in the consolidated statements of comprehensive income/(loss) of the year ended December 31, 2019. As of December 31, 2018 and 2019, the fair values of the contingent returnable consideration were RMB18.2 million and RMB98.5 million (US$14.1 million), respectively, recorded as prepayments and other current assets in the consolidated balance sheets. See note 6. Acquisition of Tianbo in 2019 The Group holds a 50% equity interest in Tianbo. Before April 1, 2019, as the Group had significant influence over financial and operating decision-making of Tianbo, it accounted for the 50% equity interest in Tianbo by using the equity method of accounting. On April 1, 2019, the Group obtained control over Tianbo and started consolidating Tianbo from April 1, 2019, as the Group and other shareholders of Tianbo agreed to make certain revisions to the articles of association of Tianbo, which granted the Group the voting power to decide Tianbo’s significant financial and operating decisions at both the shareholder level and the board level, to accelerate the development of its real estate vertical and to further bolster the development of the Group’s real estate vertical and to create more synergies on Tianbo’s new business, with the equity interest in Tianbo of 50% unchanged. At the same time, the Group agreed with other shareholders of Tianbo and would provide free advertising resources to Tianbo as consideration to gain control over Tianbo with a fair value of RMB5.9 million (US$0.8 million), estimated by management after considering an independent appraisal performed by a reputable valuation firm. The previously held equity interest in Tianbo was remeasured at fair value of RMB17.0 million (US$2.4 million) on the date of acquisition and a gain on remeasurement of RMB0.5 million (US$0.07 million) was recognized in the consolidated statements of comprehensive income/(loss). 4. Acquisition (Continued) Acquisition of Tianbo in 2019 (continued) The allocation of the purchase price as of the date of acquisition is summarized as follows (in thousands): Amount RMB Non-cash consideration 5,900 Fair value of previously held equity interests in Tianbo 17,012 Total purchase consideration 22,912 Net assets acquired (Note a) 17,138 Goodwill 22,786 Noncontrolling interests (17,012 ) Total 22,912 Note: (a) Net assets acquired included cash, cash equivalents and restricted cash with an amount of RMB175.5 million (US$25.2 million). There were no material amortizable intangible assets (e.g. trademark and domain names, customer relationship) identified and recognized as Tianbo has no independent trademark and domain name or exclusive service agreement signed between Tianbo and its customers. Goodwill, which is for tax purpose , is primarily attributable to the synergies expected to be achieved from the acquisition. Tianbo contributed revenues of RMB248.5 million (US$35.7 million) and earnings of RMB19.6 million (US$2.8 million) to the Group for the period from April 1, 2019 to December 31, 2019. Pro Forma Year Ended December 31, 2018 2019 RMB RMB (unaudited) (unaudited) Revenue 1,579,211 1,566,245 Net (loss)/income attributable to Phoenix New Media Limited (50,577 ) 731,007 The Group did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The valuations used in the purchase price allocation described above were determined by the Group with the assistance of an independent third-party valuation firm. The valuations considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are both private companies, the fair value estimates of or noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flow (c) financial multiple of companies in the same industry and (d) adjustment for lack of control or lack of marketability. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable Net [Abstract] | |
Accounts Receivable, Net | 5. Accounts Receivable, Net The following table sets out the balance of accounts receivable as of December 31, 2018 and 2019 (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Accounts receivable, gross 562,797 757,158 108,759 Allowance for doubtful accounts (78,684 ) (118,886 ) (17,077 ) Accounts receivable, net 484,113 638,272 91,682 The following table presents the movement of the allowance for doubtful accounts (in thousands): 2017 2018 2019 2019 RMB RMB RMB US$ Balance as of January 1, 91,348 65,454 78,684 11,302 Additional provision/(reversal) charged to bad debt expenses, net (9,137 ) 22,473 43,932 6,311 Write-off of bad debt provision (16,757 ) (9,243 ) (3,730 ) (536 ) Balance as of December 31, 65,454 78,684 118,886 17,077 The reversal of RMB9.1 million bad debt expenses in 2017 were mainly caused by the collection of previously fully-reserved receivables of RMB25.4 million, and partially offset by the addition of new bad debt provision of RMB16.3 million. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepayment And Other Current Assets | 6. Prepayments and Other Current Assets The following is a summary of prepayments and other current assets (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Prepaid rental and deposits 2,799 12,737 1,830 Prepayments to suppliers and other business related expenses 60,548 34,316 4,929 Receivables related to exercise of employee options 4,101 4,003 575 Costs to fulfill contracts with customers 157 1,686 242 Financial assets — contingent returnable consideration (Note 4) 18,211 98,473 14,145 Long-term receivable from an unrelated party due within one year — 6,500 934 Others 3,147 5,153 739 Total 88,963 162,868 23,394 Prepayments to suppliers and other business related expenses mainly consist of business related staff advances, in-house produced content costs and the Group’s prepaid content licenses fee to third-party content suppliers for the rights to access and present on the Group’s website the content produced by these suppliers during a certain period. These content licenses generally have a license period of one to three years, and are amortized over the license period on a straight-line basis. The portion of the prepaid content license costs that relates to the license period for more than 12 months from the balance sheet date is classified as other non-current assets. The long-term receivable from an unrelated party represented a two-year loan granted to the unrelated party with an interest rate of 10.0%, which was due within one year. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 7. Property and Equipment, Net The following is a summary of property and equipment, net (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Computers, equipment and furniture 199,591 218,284 31,355 Motor vehicles 5,971 6,100 876 Leasehold improvements 38,821 42,408 6,092 Total 244,383 266,792 38,323 Less: accumulated depreciation (148,752 ) (165,142 ) (23,722 ) Net book value 95,631 101,650 14,601 Depreciation expenses for the years ended December 31, 2017, 2018 and 2019 were RMB32.2 million, RMB29.4 million and RMB35.6 million (US$5.1 million), respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets, Net | 8. Intangible Assets, Net The following table summarizes the Group’s intangible assets, net (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Computer software 23,233 20,653 2,967 License and licensed games 7,899 132 19 User base 5,100 5,100 733 Licensed copyrights of reading content 49,200 89,084 12,796 Audio content — 9,639 1,385 Trademark and domain names 38,354 38,354 5,509 Total 123,786 162,962 23,409 Less: accumulated amortization (24,035 ) (58,082 ) (8,344 ) accumulated impairment (2,303 ) (5,600 ) (804 ) Net book value 97,448 99,280 14,261 Amortization expenses for the years ended December 31, 2017, 2018 and 2019 were RMB3.4 million, RMB3.1 million and RMB41.8 million (US$6.0 million), respectively. Based on the current amount of intangible assets subject to amortization, the estimated amortization expenses for each of the following five years are as follows: 2020: RMB30.1 million, 2021: RMB21.8 million, 2022 RMB17.3 million, 2023: RMB12.7 million and 2024: RMB7.7 million. |
Available-for-sale Debt Investm
Available-for-sale Debt Investments | 12 Months Ended |
Dec. 31, 2019 | |
Available For Sale Securities [Abstract] | |
Available-for-sale Debt Investments | 9. Available-for-sale Debt Investments Investments in Particle The Company held Series B, Series C and Series D1 convertible redeemable preferred shares of Particle Inc. (“Particle”), which had been accounted for as available-for-sale debt investments. As of December 31, 2018, the fair values of available-for-sale debt investments in Particle were RMB1,959.5 million, which represented approximately 37.63% equity interest of Particle on an as-if converted basis. The Company has determined that its investments in Series B, Series C and Series D1 convertible redeemable preferred shares of Particle are not considered in-substance common stock but considered debt securities as the preferred shares of Particle are redeemable at the option of the Company and are therefore not within the scope of ASC 323 Equity Method and Joint Ventures The Company entered into a share purchase agreement (the “SPA”) with Run Liang Tai Management Limited, or Run Liang Tai, equity interest of Particle Prior to this transaction, the Company owned 37.63% equity interest of Particle on an as-if converted basis. As of December 31, 2019, the fair values of available-for-sale debt investments in Particle were RMB2,012.5 million (US$289.1 million), which represented approximately 20.21% equity interest of Particle on an as-if converted basis, which reflected the completion of the issuance of additional shares under Particle's share incentive Investments in Fengyi Technology In December 2018, the Group acquired 40% equity interest of Henan Fengyi Feiyang Network Technology Limited (“Fengyi Technology”) with a consideration of RMB2.0 million. Fengyi Technology mainly engages in advertising service in China. As the investment in Fengyi Technology is redeemable at the option of the Group, it is not considered in-substance common stock but considered debt securities. The Group’s investment in Fengyi Technology is classified as available-for-sale debt investments and reported at fair value. As of December 31, 2018 and 2019, the fair value of investment in Fengyi Technology was RMB2.0 million, and RMB2.0 million (US$0.3 million), respectively. As the Group does not expect to sell or redeem the investments mentioned above within one year, the available-for-sale debt investments are classified as long-term available-for-sale debt investments. Total unrealized gains on available-for-sale debt investments recorded in accumulated other comprehensive income excluding tax effect were RMB1,323.6 million and RMB1,615.1 million (US$232.0 million) as of December 31, 2018 and 2019, respectively. The total fair value of available-for-sale debt investments were RMB1,961.5 million and RMB2,014.5 million (US$289.4 million) as of December 31, 2018 and 2019, respectively (see Note 21). |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Investments [Abstract] | |
Equity Investments | 10. Equity Investments Equity method investments The Group applies the equity method of accounting to account for its equity investments in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. The Group holds 50% equity interest in Tianbo. Before April 1, 2019, as the Group had significant influence over financial and operating decision-making of Tianbo, it accounted for the 50% equity interest in Tianbo by using the equity method of accounting. As of December 31, 2018, the carrying values of equity investment in Tianbo were RMB20.5 million. In April 2019, the Group obtained control over financial and operation decision-making of Tianbo and could consolidate Tianbo (see Note 4). Therefore, Tianbo has been a subsidiary of the Company’s VIE since April 1, 2019. Despite holding 100% ordinary shares of Phoenix FM Limited (“Phoenix FM”), the Company accounts for its investment in Phoenix FM as an equity investment since the Company did not control Phoenix FM due to substantive participating rights that have been provided to IDG-Accel China Growth Fund III L.P. and IDG-Accel China III Investors L.P., who invested in preferred shares of Phoenix FM. The Group had fully written down the whole investment in Phoenix FM in 2015. The Group holds 31.54% equity interest of Shenzhenshi Fenghuang Jingcai Network Technology Co., Ltd. (“Fenghuang Jingcai”). Since March 2015, Fenghuang Jingcai had suspended all of its online lottery ticket distribution businesses, in response to the Notice related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales, or the Self-Inspection Notice, which was jointly promulgated by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People’s Republic of China. The Group assessed that the Self-Inspection Notice would have negative impact on the cash flows and operating results of Fenghuang Jingcai, and that the carrying value of its equity investments in Fenghuang Jingcai might not be fully recoverable. As a result, the Group had fully written down the whole investment in Fenghuang Jingcai in 2015. As of December 31, 2019, there has been no change to the Self-Inspection Notice. The Group no longer records share of losses in Phoenix FM and Fenghuang Jingcai, as the carrying value of equity investments in them had been reduced to zero. Meanwhile, the Group has no future obligations to fund Phoenix FM and Fenghuang Jingcai. The Group summaries the condensed financial information of the Group’s equity method investments as a group below in accordance with Rule 4-08 of Regulation S-X (in thousands): For the Years Ended December 31, 2017 2018 2019* 2019 RMB RMB RMB US$ Operating data: Revenues 171,335 220,656 37,987 5,456 Gross profit 101,424 140,701 25,874 3,717 Net income/(loss) 2,562 1,747 (21,583 ) (3,100 ) Net income/(loss) attributable to the equity method investees 2,562 577 (21,442 ) (3,080 ) PNM’s share of net income/(loss) 6,796 5,352 (3,968 ) (570 ) * Tianbo has been a subsidiary of the Company’s VIE and no longer an equity method investee since April 1, 2019. The operating data here only included the data of Tianbo from January 1, 2019 to March 31, 2019. As of December 31, 2018 2019* 2019 RMB RMB US$ Balance sheet data: Current assets 249,386 3,251 467 Non-current assets 20,428 17 2 Current liabilities 286,695 59,685 8,573 * Tianbo has been a subsidiary of the Company’s VIE and no longer an equity method investee since April 1, 2019. The balance sheet data here did not include the data of Tianbo as of December 31, 2019. 10. Equity Investments (Continued) Other equity investments The Group holds 4.69% equity interest of Beijing Phoenix Lilita Information Technology Co., Ltd. (“Lilita”). Lilita is principally engaged in P2P lending and reward-based crowd-funding businesses. Based on the other-than-temporary impairment assessment on equity investments, the Group had fully written down the whole investment in Lilita of RMB0.5 million in 2017. The Group holds 0.3% equity interest of Lifeix Inc. (“Lifeix”), which had been fully impaired in 2015. Lifeix is the operator of the life station websites L99.com and Lifeix.com. In August 2017, the Group acquired 8% equity interest of Shenzhenshi Kuailai Technology Co., Ltd. (“Kuailai”) with a consideration of RMB0.2 million. Kuailai operates Xunhutai, a life-style information application in China. As of December 31, 2019, the carrying value of equity investment in Kuailai was RMB0.2 million (US$0.03 million). In November 2018, the Group acquired 10% equity interest of Yitong Technology (Hangzhou) Limited (“Yitong Technology”) by investing in newly issued shares of Yitong Technology with a total consideration of RMB13.0 million, of which RMB6.5 million and RMB6.5 million (US$0.9 million) was paid in December 2018 and February 2019, respectively. Yitong Technology mainly engages in big data application development and operation in China. As the Group’s equity investment in Yitong Technology has preferred liquidation rights, it is not considered as in-substance common stock, and should be measured at fair value, with changes in the fair value recognized through net income/(loss). As the investments in Yitong Technology lack readily determinable fair values, the Group elects to use the measurement alternative defined as cost, less impairments, adjusted by observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of December 31, 2018 and 2019, the carrying value of equity investment in Yitong Technology was R MB13.0 million and RMB13.0 million (US$1.9 million), respectively. |
Convertible Loans Due from a Re
Convertible Loans Due from a Related Party | 12 Months Ended |
Dec. 31, 2019 | |
Convertible Loans Due From A Related Party [Abstract] | |
Convertible Loans Due from a Related Party | 11. Convertible Loans Due from a Related Party In 2016, the Company granted an unsecured short-term loan to Particle with a principal amount of US$14.8 million at an interest rate of 4.35% per annum, whose term had been extended several times to twenty-four months. The Company had the right to convert, at the Company’s option, all or a portion of the loan (including principal and interests) into Series D1 preferred shares to be issued by Particle on or before maturity date at a conversion price of US$1.071803 per share. In August 2018, the Company assigned to Long De the Company’s rights under the loan with an assignment consideration of approximately US$17.0 million, and recognized a gain on disposal of convertible loans due from a related party of US$1.5 million (RMB10.6 million) in the consolidated statements of comprehensive income/(loss) for the year ended December 31, 2018 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 12. Goodwill The changes in the carrying amount of goodwill are follows: Yitian Xindong Business Tianbo Business Total RMB RMB RMB Balance as of December 31, 2017 — — — Goodwill acquired 338,288 — 338,288 Balance as of December 31, 2018 338,288 — 338,288 Goodwill acquired — 22,786 22,786 Balance as of December 31, 2019 338,288 22,786 361,074 The Group first applied the assessment and then performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to its carrying amounts. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. There was no impairment charge recognized for any of the periods presented. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets Noncurrent [Abstract] | |
Other Non-Current Assets | 13. Other Non-Current Assets The following is a summary of other non-current assets (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Rental deposits 8,355 8,330 1,197 Non-current portion of prepayments to suppliers and other business related expenses 9,099 8,698 1,249 Long-term receivable from an unrelated party 6,000 — — Others — 2,831 407 Total 23,454 19,859 2,853 The long-term receivable from an unrelated party represented a two-year loan granted to the unrelated party with an interest rate of 10.0%, which would be due in March 2020 and has been reclassified into prepayments and other current assets |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | 14 . Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are comprised of (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Deposits from advertising agencies and customers 13,760 16,029 2,302 Accrued professional fees 7,059 7,869 1,130 Advertising and promotion expenses payables and accruals 83,805 73,533 10,562 General operating expenses payables and accruals 36,955 71,350 10,249 Consideration to be paid for acquisition of Yitian Xindong (Note 4) 71,100 — — Deposits from original investor of Yitian Xindong (Note 4) 14,200 16,700 2,399 Deposits from individual property buyers — 83,131 11,941 Forward contract in relation to future disposal of investments in Particle (Note 9) — 15,988 2,297 Others 449 8,841 1,270 Total 227,328 293,441 42,150 14 . Accrued Expenses and Other Current Liabilities (Continued) As the agent of real estate developers, the Group sells individual property buyers coupons issued by real estate developers that enable them to purchase specified properties from real estate developers at a discounted price. Coupons purchase price are collected initially by the Group upfront from the property buyers, and subsequently, the coupon purchase price will be remitted to the real estate developers when property buyers use the coupons to purchase the specified properties, or will be refunded to property buyers if they decide not to buy. The coupons purchase price paid by the property buyers are recorded in accrued expenses and other current liabilities in the Group's consolidated balance sheets. |
Short-term Bank Loans
Short-term Bank Loans | 12 Months Ended |
Dec. 31, 2019 | |
Short Term Borrowings [Abstract] | |
Short-term Bank Loans | 15. Short-term Bank Loans In March 2018, the Group entered into a loan facility agreement with Hang Seng Bank. According to this facility, the Group was authorized bank loans with an aggregate principal amount of US$47.0 million or its equivalent in HKD or RMB and with maturity of twelve months, which would be required to be secured by RMB deposits in an onshore branch of Hang Seng Bank. The loans would be repayable on demand and bear interest rate of London Inter-Bank Offered Rate (“LIBOR”) plus 1.2% per annum. The Group obtained US$23.0 million short-term secured bank loan in March 2018 and US$16.0 million short-term secured bank loan in May 2018, both with maturity of twelve months under this facility. In 2019, the Group repaid all the short-term secured bank loans. As of December 31, 2018 and 2019, the Group had total short-term bank loans of US$39.0 million (RMB267.7 million) and nil from Hang Seng Bank, respectively, and the short-term bank loans were secured by bank deposits of RMB269.6 million and nil, respectively. The pledged deposits were classified as restricted cash on the consolidated balance sheets. |
Cost of Revenues
Cost of Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Cost Of Revenue [Abstract] | |
Cost of Revenues | 16. Cost of Revenues The cost of revenues is as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenue sharing fees 72,613 47,539 59,672 8,571 Content and operational costs 466,379 491,868 648,195 93,108 Bandwidth costs 55,050 57,141 60,435 8,681 Sales taxes and related surcharges (Note 2(t)) 133,155 — — — Total 727,197 596,548 768,302 110,360 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes Income Tax Expense and Effective Tax Rate The provisions for income tax expense are summarized as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Current tax expense 20,936 19,819 23,218 3,336 Deferred tax (benefit)/expense (6,153 ) 286 (2,977 ) (428 ) Income tax expense 14,783 20,105 20,241 2,908 17. Income Taxes (Continued) The components of income before tax and income tax expense for PRC and non-PRC operations are as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Income/(loss) arising from PRC operations 104,208 (43,009 ) (214,743 ) (30,846 ) (Loss)/income arising from non-PRC operations (55,001 ) (2,498 ) 958,986 137,750 Income/(loss) before tax 49,207 (45,507 ) 744,243 106,904 Income tax expense relating to PRC operations 14,739 20,129 20,243 2,908 Income tax expense/(benefit) relating to non-PRC operations 44 (24 ) (2 ) (0.3 ) Income tax expense 14,783 20,105 20,241 2,908 Effective tax rate for PRC operations 14.1 % (46.8 )% (9.4 )% (9.4 )% Cayman Islands (“Cayman”) Under the relevant current laws of the Cayman Islands, corporate income, capital gains or other direct taxes are not imposed on corporations in the Cayman Islands. In addition, dividend payments are not subject to withholding taxes in the Cayman Islands. The Company recognized a gain on disposal of available-for-sale debt investments of RMB1,001.2 million (US$143.8 million) in the consolidated statements of comprehensive income/(loss) for the year ended December 31, 2019, which was not subject to any corporate British Virgin Islands (“BVI”) The Group’s subsidiaries incorporated in the British Virgin Islands are exempted from income tax on their foreign-derived income and are not subject to withholding taxes. Hong Kong The Group’s subsidiaries incorporated in Hong Kong are subject to a tax rate of 16.5% on the estimated assessable profit arising in Hong Kong. PRC Each of the Group’s PRC subsidiaries, VIEs and subsidiaries of the VIEs are obligated to pay income tax in the PRC. The PRC Corporate Income Taxes Law (“CIT Law”) generally applies an income tax rate of 25% to all enterprises, but grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”) and Software Enterprises. Under these preferential tax treatments, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years and Software Enterprises are entitled to an income tax exemption for two years beginning from its first profitable year and a 50% reduction to a rate of 12.5% for the subsequent three years. Fenghuang On-line had been qualified as an HNTE in November 2014 and August 2017, respectively, and was entitled to a preferential tax rate of 15%. Therefore, Fenghuang On-line was subject to a 15% income tax rate for the years from 2017 to 2019. Tianying Jiuzhou resubmitted applications for qualification and was approved as an HNTE in 2014 and 2017, respectively, and therefore, Tianying Jiuzhou was subject to a 15% income tax rate from 2017 to 2019. In 2012, Fenghuang Yutian was qualified as a Software Enterprise. As 2013 was the first year Fenghuang Yutian generated taxable profit, it was exempted from income taxes for the years 2013 and 2014, and was subject to a 12.5% income tax rate from 2015 to 2017. In 2017, Fenghuang Yutian had been qualified as an HNTE, and therefore Fenghuang Yutian was subject to a 15% income tax rate in 2018 and 2019. In 2016, Fenghuang Borui was qualified as a Software Enterprise. As 2016 was the first year Fenghuang Borui generated taxable profit, it was exempted from income taxes for the years 2016 and 2017, and was subject to a 12.5% income tax rate in 2018 and 2019. 17. Income Taxes (Continued) Yitian Xindong was qualified as an HNTE in November 2018, and was entitled to a preferential tax rate of 15%. Therefore, Yitian Xindong was subject to a 15% income tax rate in 2018 and 2019. All other PRC incorporated entities of the Group were subject to a 25% income tax rate for all the years presented. The CIT Law also provides that an enterprise established under the laws of foreign countries or regions but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. On April 22, 2009, the State Administration of Taxation (“SAT”) issued a circular, known as Circular 82, which provides certain specific criteria for determining whether the “de facto management body” of a PRC-controlled enterprise that is incorporated offshore is located in China. Under Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its “de facto management body” in China and will be subject to PRC enterprise income tax on its global income only if all of the following conditions are met: (i) the primary location of the day-to-day operational management is in the PRC; (ii) decisions relating to the enterprise’s financial and human resource matters are made or are subject to approval by organizations or personnel in the PRC; (iii) the enterprise’s primary assets, accounting books and records, company seals, and board and shareholder resolutions, are located or maintained in the PRC; and (iv) at least 50% of voting board members or senior executives habitually reside in the PRC. The Company and its offshore subsidiaries have never been treated as resident enterprises for PRC tax purposes. Withholding Tax on Undistributed Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign invested enterprises in the PRC to their immediate holding companies outside the PRC. A lower withholding tax rate may be applied if there is a tax treaty between the PRC and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5.0% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital,” if such holding company is considered a non-PRC resident enterprise and holds at least 25.0% of the equity interest in the PRC foreign invested enterprise distributing the dividends, subject to approval of the PRC local tax authority. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to a withholding tax rate of 10%. The PRC subsidiaries, VIEs and subsidiaries of VIEs have not paid dividends in the past and do not have any present plans to declare and pay any dividends on the Company’s ordinary shares or ADSs in the near future and the Group currently intends to retain most, if not all, of its available funds and any future earnings to operate and expand the business. Accordingly, the Company does not intend to have its PRC subsidiaries distribute any undistributed profits of such subsidiaries to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested in such subsidiaries to further expand their business in the PRC. As of December 31, 2019, the Company did not record any withholding tax on the retained earnings of its foreign invested enterprises in the PRC. Aggregate undistributed earnings of the Group’s entities located in the PRC that were available for distribution to the Company as of December 31, 2018 and 2019 were approximately RMB1,052.2 million and RMB820.1 million (US$117.8 million), respectively. The amounts of the unrecognized deferred tax liability on the permanently reinvested earnings were RMB105.2 million and RMB82.0 million (US$11.8 million) as of December 31, 2018 and 2019, respectively. Withholding Tax on gain from the disposal of available-for-sale debt investments The Company is subject to PRC withholding tax of 10% on the gain recognized from the disposal of available-for-sale debt investments Public Notice on Several Issues regarding Enterprise Income Tax for Indirect Property Transfer by Non-resident Enterprises Public Notice Regarding Issues Concerning the Withholding of Non-resident Enterprise Income Tax at Source 17. Income Taxes (Continued) Reconciliation of the Differences between Statutory Tax Rate and the Effective Tax Rate for PRC Operations Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for PRC operations for the years ended December 31, 2017, 2018 and 2019 is as follows: For the Years Ended December 31, 2017 2018 2019 % % % Statutory income tax rate 25.0 25.0 25.0 Permanent differences* (10.1 ) 46.2 18.0 Change in valuation allowance 2.9 (77.2 ) (33.0 ) Effect of preferential tax treatment (6.6 ) (37.5 ) (18.7 ) Uncertain tax positions 2.9 (3.3 ) (0.7 ) Effective income tax rate 14.1 (46.8 ) (9.4 ) * Permanent differences mainly included the tax-deductible expenses of the research and development expenses so incurred in a year in determining their tax assessable profits for that year for enterprises engaging in research and development activities, which were of 150% before 2018 and of 175% beginning from January 1, 2018, according to policies promulgated by the State Tax Bureau of the PRC. The combined effects of the income tax exemption and other preferential tax treatment available to the Group are as follows (in thousands, except per share data): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Effect of preferential tax treatment 6,836 (16,128 ) (40,054 ) (5,753 ) Basic net income/(loss) per share effect 0.01 (0.03 ) (0.07 ) (0.01 ) Deferred Tax Assets and Liabilities The tax effects of temporary differences that give rise to the deferred tax assets and liabilities balances as of December 31, 2018 and 2019 are as follows (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Deferred tax assets: Provision of allowance for doubtful accounts 21,431 31,240 4,487 Accrued payroll and expenses and others 25,576 32,849 4,720 Net operating loss carryforward 69,150 136,503 19,607 Less: valuation allowance (55,997 ) (126,904 ) (18,229 ) Total deferred tax assets, net 60,160 73,688 10,585 17. Income Taxes (Continued) As of December 31, 2018 2019 2019 RMB RMB US$ Deferred tax liabilities: Unrealized holding gain of available-for-sale debt investments* 132,272 190,830 27,412 Amortizable intangible assets from acquisition of a subsidiary 7,376 5,668 814 Others 1,312 1,312 188 Total deferred tax liabilities 140,960 197,810 28,414 *The Company recognized a deferred tax liability of RMB132.3 million and RMB190.8 million (US$27.4 million) for the unrealized holding gain of available-for-sale debt investments in Particle, as of December 31, 2018 and 2019, respectively, which was recorded net against the pre-tax changes in other comprehensive income. As of December 31, 2019, the Group had net operating loss of approximately RMB827.4 million (US$118.8 million), which can be carried forward to offset future taxable income. Net operating loss carry forward of RMB29.0 million, RMB 6 Movement of Valuation Allowance Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future reversals of existing taxable temporary differences, future profitability and tax planning strategies. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of its future taxable income. The following table sets forth the movement of the valuation allowance for deferred tax assets (in thousands): 2017 2018 2019 2019 RMB RMB RMB US$ Balance as of January 1, 11,402 14,208 55,997 8,043 Additions 6,164 37,584 70,709 10,158 Increase from an acquired subsidiary — 8,576 997 143 Reversals (3,358 ) (4,371 ) (799 ) (115 ) Balance as of December 31, 14,208 55,997 126,904 18,229 As valuation allowance had been recognized for most of the increased net operating loss carry forward incurred in 2019 because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of its future taxable income, there was an addition of RMB70.7 million (US$10.2 million) in valuation allowance in 2019. Uncertain Tax Positions A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows (in thousands): 2017 2018 2019 2019 RMB RMB RMB US$ Balance as of January 1, 21,723 24,714 26,131 3,753 Increase related to current year tax positions 2,991 1,417 1,481 213 Balance as of December 31, 24,714 26,131 27,612 3,966 The Group did not accrue any potential penalties and interest related to these uncertain tax positions for all years presented on the basis that the likelihood of penalties and interest being charged is not considered to be probable. 17. Income Taxes (Continued) The amounts of uncertain tax positions listed above are based on the recognition and measurement criteria of ASC 740. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of uncertain tax positions may result in liabilities which could be materially different from these estimates. In such an event, the Group will record additional tax expense or tax benefit in the period in which such resolution occurs. The Group does not expect changes in uncertain tax positions recognized as of December 31, 2019 to be material in the next twelve months. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities’ tax years from 2015 to 2019 remain subject to examination by tax authorities. There are no ongoing examinations by tax authorities as of December 31, 2019. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2019 | |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
Ordinary Shares | 18. Ordinary Shares The Company has Class A ordinary shares and Class B ordinary shares which are all at par value of US$0.01 each. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except that holders of Class A ordinary shares are entitled to one vote per share, while holders of Class B ordinary shares are entitled to 1.3 votes per share. The Parent, which is wholly owned by Phoenix TV, holds Class B ordinary shares, each of which is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. As of December 31, 2018, there were 264,824,592 and 317,325,360 Class A and Class B ordinary shares issued and outstanding, respectively. As of December 31, 2019, there were 264,998,965 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | 19. Share-based Compensation Share-based compensation recognized in costs and expenses for the years ended December 31, 2017, 2018 and 2019 are as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Cost of revenues 5,017 3,750 6,830 981 Sales and marketing expenses 1,877 2,360 1,643 236 General and administrative expenses 10,796 5,072 9,025 1,296 Technology and product development expenses 3,162 2,807 2,723 392 Total 20,852 13,989 20,221 2,905 The Group recognized share-based compensation, net of estimated forfeitures, on a graded-vesting basis over the vesting term of the awards. There was no income tax benefit recognized in the consolidated statements of comprehensive income/(loss) for share-based compensation and the Group did not capitalize any of the share-based compensation as part of the cost of any asset in the years ended December 31, 2017, 2018 and 2019. For the years ended December 31, 2017, 2018 and 2019, the Group recognized share-based compensation net of forfeitures for options of RMB20.9 million, RMB14.0 million and RMB20.2 million (US$2.9 million), respectively. 19. Share-based Compensation (Continued) Share Options of the Company In June 2008, the Company adopted the Share Option Scheme (the “June 2008 Scheme”) that provides for the granting of options to employees, directors and consultants to attract and retain the best available personnel and promote the success of the Group’s business, which terminated automatically in June 2018. In June 2018, the Company adopted another Share Option Scheme (the “June 2018 Scheme”), whose main clauses are the same with the June 2008 Scheme. The schemes permit the grant of options to its eligible recipients for up to 10% of the ordinary shares in issue (the “Limit”) on the effective dates of the schemes. The total number of ordinary shares which may be issued upon exercise of all outstanding options granted and yet to be exercised under the schemes and any other share option schemes of the Company shall not exceed 30% of the ordinary shares in issue from time to time. The Company may seek approval from its shareholders to refresh the Limit provided that the Limit as refreshed shall not exceed 10% of the ordinary shares of the Company in issue as at the date of approval, and options previously granted will not be counted for the purpose of calculating the Limit as refreshed. Any outstanding option lapse in accordance with the terms of the schemes will not be counted for the purpose of calculating the Limit. Option awards are granted with an exercise price determined by the board of directors. Those option awards vest over a period of four years and expire in ten years. The Company accounted for an option exchange program implemented from October 21, 2016 to November 1, 2016 as option modification and recognized the total incremental share-based compensation of which RMB5.9 million, RMB1.3 million and RMB0.1 million (US$0.02 million) were recognized in the years ended December 31, 2017, 2018 and 2019, respectively. The Company granted 1,720,000 share options to one non-employee in September 2017 for the content related consulting services provided by him, which would vest over a period of four years and expire in ten years with a grant-date fair value of US$0.4648 per share. In January 2018, the Company granted 3,314,500 share options to two non-employees for the content related consulting services provided by them, which would vest over a period of four years and expire in ten years. The share-based awards to nonemployees are accounted for based on the fair value of the consideration received or the fair value of the award issued, whichever is more reliably measurable. The Company applies the guidance in ASU Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting A summary of the Company’s share option activities for the years ended December 31, 2017, 2018 and 2019 is presented below: Weighted Weighted Average Number of Average Remaining Aggregate Options Exercise Price Contractual Life Intrinsic Value US$ Years US$ in Million Outstanding as of January 1, 2017 44,445,135 0.43 7.1 1.8 Granted 7,255,000 0.42 Forfeited and expired (7,319,500 ) 0.50 Exercised (5,091,696 ) 0.37 2.1 Outstanding as of December 31, 2017 39,288,939 0.42 6.7 15.3 Granted 3,719,500 0.56 Forfeited and expired (3,933,599 ) 0.47 Exercised (4,823,106 ) 0.12 2.3 Outstanding as of December 31, 2018 34,251,734 0.47 6.4 — Granted 15,794,018 0.48 Forfeited and expired (7,128,379 ) 0.49 Exercised (174,373 ) 0.43 0.02 Outstanding as of December 31, 2019 42,743,000 0.47 6.4 — Exercisable as of December 31, 2019 25,806,736 0.47 4.5 — Vested and expected to vest as of December 31, 2019 33,809,645 0.47 5.6 — 19. Share-based Compensation (Continued) Share Options of the Company (continued) The aggregate intrinsic value of options outstanding, exercisable and vested and expected to vest as of December 31, 2019 was calculated as the difference between the Company’s closing stock price of US$1.97 per ADS, or US$0.25 per share as of that date, and the exercise price of the underlying options. The aggregate intrinsic value of options exercised was calculated as the difference between the market value on the date of exercise and the exercise price of the underlying options. As disclosed in Note 2(y), the Company’s share-based compensation is measured at the value of the award as calculated under the Black-Scholes option pricing model. The Company estimated the expected volatility at the date of grant based on average annualized standard deviation of the share price of comparable listed companies. The Company has no history or expectation of paying regular For the Years Ended December 31, 2017 2018 2019 Expected volatility rate 48.84%-57.06% 56.76%-57.10% 55.92%-77.98% Expected dividend yield — — — Expected term (years) 3.13-6.16 2.50-6.16 1.00-6.16 Risk-free interest rate (per annum) 0.90%-1.92% 0.91%-2.09% 2.33%-3.12% The weighted-average grant date fair value of options granted for the years ended December 31, 2017, 2018 and 2019 were US$0.48, US$0.48 and US$0.20, respectively. As of December 31, 2019, there was RMB9.4 million (US$1.4 million) of unrecognized share-based compensation for options, adjusted for estimated forfeitures. The unrecognized share-based compensation is expected to be recognized over a weighted-average period of 3.2 years. Share-based Awards of the Company’s Subsidiaries, VIEs and Subsidiaries of the VIEs One of the Company’s subsidiaries, Fread Limited, adopted a restricted share unit scheme in March 2018 to grant a total of 2,000,000 restricted share units to employees (the “2018 Fread RSU Scheme”). As of December 31, 2018 and 2019, nil and 920,000 restricted share units of Fread Limited have been granted under the 2018 Fread RSU Scheme, respectively. For the year ended December 31, 2019, Fread Limited recognized share-based compensation net of forfeitures of RMB3.8 million (US$0.6 million). O ne of the Company’s subsidiaries of VIEs, Yitian Xindong, adopted an option scheme in December 2018 (the “2018 Tadu Option Scheme”), under which Telling Telecom would grant a total of 6,750,000 options to Yitian Xindong’s employees from its previously held shares with an exercise price of RMB3 per share. In December 2018, Telling Telecom granted a total of 4,588,994 share options to Yitian Xindong’s employees, which would be vested over the requisite service period from December 28, 2018 to March 31, 2021 and expired before March 31, 2021. In June 2019, Telling Telecom granted 872,299 share options to Yitian Xindong’s employees, which would be vested over the requisite service period from June 18, 2019 to March 31, 2021 and expired before March 31, 2022. As of December 31, 2019, 2,550,203 share options would be vested only if the performance targets based on Yitian Xindong’s Performance Targets in 2019 and 2020 are achieved. As the Group assessed that it was not probable that the performance condition would be achieved, no compensation cost for the 2,550,203 share options were recognized in the years ended December 31, 2018 and 2019. The share-based compensation recognized during the 3-day period from December 29, 2018 to December 31, 2018 was immaterial. For the year ended December 31, 2019, Yitian Xindong recognized share-based compensation net of forfeitures of RMB8.4 million (US$1.2 million). |
Segments
Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments | 20. Segments The Group currently operates in two principal operating segments: net advertising services and paid services. Information provided to the CODM is at the gross margin level. The Group currently does not allocate operating expenses or assets to its segments, as its CODM does not use such information to allocate resources to or evaluate the performance of the operating segments. The following table presents summarized information by segments (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenues Net advertising services 1,353,480 1,198,271 1,263,485 181,488 Paid services 221,612 179,108 267,577 38,435 Total revenues 1,575,092 1,377,379 1,531,062 219,923 Cost of revenues Net advertising services (602,945 ) (517,533 ) (638,160 ) (91,666 ) Paid services (124,252 ) (79,015 ) (130,142 ) (18,694 ) Total cost of revenues (727,197 ) (596,548 ) (768,302 ) (110,360 ) Gross profit Net advertising services 750,535 680,738 625,325 89,822 Paid services 97,360 100,093 137,435 19,741 Total gross profit 847,895 780,831 762,760 109,563 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 21. Fair Value Measurements Assets and Liabilities Measured and Disclosed at Fair Value on a Recurring Basis In accordance with ASC 820, the Group measures term deposits and short term investments, restricted cash, debt investments, and forward contract at fair value on a recurring basis. The following table sets forth the financial instruments, measured at fair value on a recurring basis, by level within the fair value hierarchy (in thousands): Fair Value Measurements at Reporting Date Using Carrying Value on Balance Sheets Quote Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB As of December 31, 2018: Assets: Term deposits and short term investments 912,594 93,398 819,196 — Restricted cash 269,648 269,648 — — Available-for-sale debt investments 1,961,474 — — 1,961,474 Financial assets — contingent returnable consideration 18,211 — — 18,211 As of December 31, 2019: Assets: Term deposits and short term investments 1,271,889 488,488 783,401 — Restricted cash 82,934 82,934 — — Available-for-sale debt investments 2,014,537 — — 2,014,537 Financial assets — contingent returnable consideration 98,473 — — 98,473 Liability: Forward contract in relation to future disposal of investments in Particle 15,988 — — 15,988 21. Fair Value Measurements (Continued) Assets and Liabilities Measured and Disclosed at Fair Value on a Recurring Basis (continued) The following table sets forth the reconciliation of the fair value measurements of available-for-sale debt investments from January 1, 2017 to December 31, 2019 (in thousands): Fair Value Measurements of Available-for-sale Debt Investments RMB Beginning balance as of January 1, 2017 939,432 Change in fair value 321,538 Currency translation adjustment (64,640 ) Ending balance as of December 31, 2017 1,196,330 Change in fair value 698,592 Currency translation adjustment 64,552 Additional investments 2,000 Ending balance as of December 31, 2018 1,961,474 Change in fair value 1,385,379 Disposal of part available-for-sale debt investments (1,390,031 ) Currency translation adjustment 57,715 Ending balance as of December 31, 2019 2,014,537 Term deposits. The fair values of term deposits placed with banks with original maturity of more than three months and up to one year are determined based on the pervasive interest rates in market as stated in the contracts with the banks. The Group classifies the valuation techniques that use the interest rates input as Level 1 of fair value measurement. Short term investments. Short term investments represent interest-bearing deposit placed with financial institutions which are restricted to withdrawal and use. The investments are issued by commercial bank in the PRC with a variable interest rate indexed to performance of underlying assets. To estimate fair value, the Group refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. 21. Fair Value Measurements (Continued) Assets and Liabilities Measured and Disclosed at Fair Value on a Recurring Basis (continued) Restricted cash. The Group’s restricted cash represents deposits that are restricted to withdrawal or usage. The fair values of restricted cash are determined based on the pervasive interest rate in the market. The Group classifies the valuation techniques that use the pervasive interest rates input as Level 1 of fair value measurement. Available-for-sale debt investments. Available-for-sale debt investments mainly represent the investments of convertible redeemable preferred shares in Particle. In accordance with ASC 820, the Group measures available-for-sale debt investments at fair value on a recurring basis. The fair values of the investments in Particle were determined based on the discounted cash flow model as of December 31, 2017. As the Company entered into a binding letter of intent (the “LOI”) in February 2019, the fair values of the investments in Particle were determined based on the scenario analysis, the weighted average valuation results derived from both the discounted cash flow model and the market approach, and the probability of each scenario as of December 31, 2018. As the Company has completed delivery of the first batch of 94,802,752 preferred shares of Particle to the Proposed Buyers in 2019, the fair values of the investments in Particle as of December 31, 2019 were determined based on a valuation technique under the market approach, known as guideline company method, where financial ratios of comparable companies were analyzed to determine the value of Particle, as well as using observable transactions of Particle’s shares. The Group classifies the valuation techniques that use unobservable inputs as Level 3 of fair value measurements. The key inputs used in valuation of available-for-sale debt investments as of December 31, 2017, 2018 and 2019 were as follow: As of December 31, 2017 2018 2019 Under the Status Quo Under the Trade Sale Scenario* Scenario** Discount rate 23% 22.5% 17% N/A Lack of marketability discount (“DLOM”) 25% 20% 15% 5% Volatility 45.3% 44.5% 44.8% 45.7% Revenue growth rate 5.0%-93.8% 3.7%-75.8% 3.7%-75.8% N/A Terminal growth rate 3% 3% 3% N/A Control premium N/A N/A 30% N/A Probability of each scenario N/A 60% 40% N/A *Under the status quo scenario, the Company would not close the transaction contemplated under the LOI, and would keep holding the investments of convertible redeemable preferred shares in Particle and maintain the status quo. **Under the trade sale scenario, the Company would close the transaction contemplated under the LOI, and the Company would go through trade sales on the investments of convertible redeemable preferred shares in Particle. Financial assets — contingent returnable consideration . The financial assets represented the fair value of the Group’s right to receive the contingent returnable consideration, subject to certain price adjustment mechanisms based on Yitian Xindong’s operating and financial performance in 2019 and 2020. The Group assesses the probability of whether Yitian Xindong’s operating and financial performance targets in 2019 and 2020 could be achieved at each reporting period, and adjusts the fair value of the financial assets accordingly based on its probability assessment. Inputs used in the probability assessment include future cash flows, discount rate, and the selection of probability. The fair values of these investments were categorized as Level 3 of fair value measurements. The following table sets forth the reconciliation of the fair value measurements of financial assets — contingent returnable consideration from January 1, 2018 to December 31, 2019 (in thousands): 21. Fair Value Measurements (Continued) Assets and Liabilities Measured and Disclosed at Fair Value on a Recurring Basis (continued) Fair Value Measurements of Financial Assets — Contingent Returnable Consideration RMB Beginning balance as of January 1, 2018 — Acquisition of Yitian Xindong 18,211 Ending balance as of December 31, 2018 18,211 Acquisition of noncontrolling interests in Yitian Xindong 18,211 Change in fair value 62,051 Ending balance as of December 31, 2019 98,473 Forward contract in relation to future disposal of investments in Particle. Forward contract in relation to future disposal of investments in Particle represented the derivative forward contract resulting from the Supplemental Agreement between the Proposed Buyers and the Company, which states the payment of the agreed-upon price in exchange for the second batch of preferred shares of Particle on or before August 10, 2020, and thus should be recognized as asset or liability and measured at fair value. The fair values of forward contract in relation to future disposal of investments in Particle were determined based on a valuation technique using inputs including fair value of the underlying assets, risk-free interest rate, term and the delivery price in the Supplemental Agreement. The Group classifies the valuation techniques that use unobservable inputs as Level 3 of fair value measurements. Assets and Liabilities Measured and Disclosed at Fair Value on a Non-Recurring Basis The Group’s non-financial long-lived assets, such as intangible assets, goodwill and fixed assets, would be measured at fair value only if they were determined to be impaired on an other-than-temporary basis. The Group uses a combination of valuation methodologies, including market and income approaches based on the Group’s best estimate to determine the fair value of these non-financial assets. Inputs used in these methodologies primarily included future cash flows, discount rate, expected volatility and the selection of comparable companies operating in similar businesses. For equity investments accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value. The non-recurring fair value measurements to the carrying amount of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Company. These non-recurring fair value measurements were measured as of the observable transaction dates. The valuation methodologies involved require management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as volatility of comparable companies and probability of exit events as it relates to liquidation and redemption preferences. Accounts receivable, amounts due from related parties, prepayments and other current assets, accounts payable, amounts due to related parties, salary and welfare payable, accrued expense, short-term bank loans and other current liabilities are financial assets or liabilities with carrying values that approximate fair value due to their short term nature. |
Net Income_ (Loss) per Share
Net Income/ (Loss) per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income/ (Loss) per Share | 22. Net Income/(Loss) per Share The following table sets forth the computation of basic and diluted net income/(loss) per share for the years indicated (amounts in thousands, except for number of shares (or ADSs) and per share (or ADS) data): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net income/(loss) per Class A and Class B ordinary share - basic: Numerator: Net income/(loss) attributable to Phoenix New Media Limited 37,472 (63,222 ) 727,829 104,546 Denominator: Weighted average number of Class A and Class B ordinary shares outstanding 573,096,266 580,516,101 582,275,800 582,275,800 Weighted average number of contingently issuable shares 1,690,621 568,352 — — Denominator used in computing net income/(loss) per share — basic 574,786,887 581,084,453 582,275,800 582,275,800 Net income/(loss) per Class A and Class B ordinary share — basic 0.07 (0.11 ) 1.25 0.18 Net income/(loss) per Class A and Class B ordinary share - diluted: Numerator: Net income/(loss) attributable to Phoenix New Media Limited 37,472 (63,222 ) 727,829 104,546 Denominator: Denominator used in computing net income/(loss) per share — basic 574,786,887 581,084,453 582,275,800 582,275,800 Share-based awards 15,647,020 — — — Denominator used in computing net income/(loss) per share — diluted 590,433,907 581,084,453 582,275,800 582,275,800 Net income/(loss) per Class A and Class B ordinary share — diluted 0.06 (0.11 ) 1.25 0.18 Net income/(loss) per ADS (1 ADS represents 8 Class A ordinary shares): Denominator used in computing net income/(loss) per ADS — basic 71,848,361 72,635,557 72,784,475 72,784,475 Denominator used in computing net income/(loss) per ADS — diluted 73,804,238 72,635,557 72,784,475 72,784,475 Net income/(loss) per ADS — basic 0.52 (0.87 ) 10.00 1.44 Net income/(loss) per ADS — diluted 0.51 (0.87 ) 10.00 1.44 The Company has included 1,690,621, 568,352 and nil contingently issuable shares in the denominator used in computing basic and diluted net income/(loss) per share for the years ended December 31, 2017, 2018 and 2019, respectively. These shares are contingently issuable upon the holders’ request without other substantive conditions and for no further consideration. There were 2,223,005, 35,183,115 and 34,445,604 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 23. Commitments and Contingencies (a) Commitments As of December 31, 2019, future minimum commitments under non-cancelable agreements were as follows (in thousands): Property Management Costs Bandwidth Purchases Cooperation with Phoenix TV Group Content Purchases Property and Equipment, and Intangible Assets Others Total RMB RMB RMB RMB RMB RMB RMB 2020 8,608 5,268 3,780 18,893 677 2,951 40,177 2021 6,251 307 2,000 1,003 487 62 10,110 2022 2,838 52 — 634 — 60 3,584 2023 — — — 542 — — 542 2024 and thereafter — — — 2,328 — 10 2,338 Total 17,697 5,627 5,780 23,400 1,164 3,083 56,751 The amounts of cooperation with Phoenix TV Group are calculated according to the agreements between the Group and Phoenix TV Group (see Note 2(a)). Upon the adoption of ASC 842 on January 1, 2019, future minimum lease payments for operating lease commitments as of December 31, 2019 are disclosed in Note 2(x). The Group did not have any significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2018 and 2019. (b) Litigation From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. The Group is currently a party to certain legal proceedings and claims which in the opinion of the Company’s management, adequate provisions have been recorded to cover the probable loss of those that can be reasonably estimated, while other claims are considered would not have material adverse effect, individually or in the aggregate, on the Group’s financial position, results of operations or cash flows. In relation to one of the claims in 2016 about the infringement of copyright and unauthorized selling on the Group’s website and mobile applications for a piece of literature work, the related claim for damage was approximately RMB235.8 million, however, the actual income the Group generated from such literature work was less than RMB1,500. This claim was withdrawn by the plaintiffs in January 2018. In April 2018, the Group received notices from the local court that the plaintiffs have filed a lawsuit against it again for the same claim, with the related claim for damages reduced to approximately RMB99.8 million. In April 2020, the Group received the judgment from the local court which ordered it to pay the plaintiffs a total of approximately RMB1.0 million as economic compensation and reimbursement of the plaintiff’s reasonable expenses. As of the date of this annual report, the time limit for lodging an appeal against the judgment has not expired yet and the Group cannot assure that the plaintiffs or it will not appeal the judgment. Therefore, the final outcome of this case is still not known yet. Litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. There exists the possibility of a material adverse impact on the Group’s financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs, and potentially in future periods. (c) Long-term Liabilities for Uncertain Tax Positions As mentioned in Note 16, as of December 31, 2018 and 2019, the Group had recorded uncertain tax positions of RMB26.1 million and RMB27.6 million (US$4.0 million), respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 24. Related Party Transactions The table below sets forth the major related parties and their relationships with the Group: Related Parties Relationships with the Group Entities within the non US listed part of the Phoenix TV Group Under common control by Phoenix TV China Mobile (“CMCC”) A shareholder of Phoenix TV Fengxin Technology (Haikou) Group Co., Ltd (“Lilita”)* Other equity investee, related party of Phoenix TV Group Particle Inc. (“Particle”) Available-for-sale debt investee, with common directors of the Company Beijing Fenghuang Tianbo Network Technology Co., Ltd. (“Tianbo”) Former equity method investee, and current subsidiary of VIEs since April 1, 2019 Phoenix FM Limited (“Phoenix FM”) Equity method investee Shenzhenshi Fenghuang Jingcai Network Technology Co., Ltd. (“Fenghuang Jingcai”) Equity method investee Yitong Technology (Hangzhou) Limited (“Yitong Technology”) Other equity investee Lifeix Inc. Other equity investee Shenzhen Kuailai Technology Co., Ltd. (“Kuailai”) Other equity investee Henan Fengyi Feiyang Network Technology Limited (“Fengyi Technology”) Available-for-sale debt investee Mr. Gao Ximin and Mr. Qiao Haiyan Legal shareholders of Tianying Jiuzhou and employees of the Group Mr. He Yansheng and Mr. Shang Xiaowei Legal shareholder of Yifeng Lianhe and employee of the Group Mr. Wu Haipeng and Mr. He Yansheng Legal shareholders of Chenhuan and employees of the Group *In 2019, the name of “Beijing Phoenix Lilita Information Technology Co., Ltd.” was changed to “Fengxin Technology (Haikou) Group Co., Ltd.”. In addition to those disclosed elsewhere in the financial statements, the Group had the following significant related party transactions during the years ended December 31, 2017, 2018 and 2019 (in thousands): Transactions with the Non US Listed Part of Phoenix TV Group: For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Content provided by Phoenix TV Group (12,090 ) (12,398 ) (11,302 ) (1,623 ) Advertising and promotion expenses charged by Phoenix TV Group (23 ) (4,258 ) (4,157 ) (597 ) Corporate administrative expenses charged by Phoenix TV Group (2,676 ) (2,166 ) (2,057 ) (295 ) Trademark license fees charged by Phoenix TV Group (3,569 ) (5,752 ) (4,988 ) (716 ) Project cost charged by Phoenix TV Group (1,217 ) (1,763 ) (1,148 ) (165 ) Revenues earned from Phoenix TV Group 9,454 14,354 15,705 2,256 Transactions with CMCC: For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Advertising revenues earned from CMCC 33,491 27,532 23,256 3,341 Paid services revenues earned from and through CMCC 138,712 86,352 71,248 10,234 Revenue sharing fees and bandwidth costs charged by CMCC (43,604 ) (15,929 ) (14,216 ) (2,042 ) 24. Related Party Transactions (Continued) Transactions with Investees: For the Years Ended December 31, 2017 2018 2019* 2019 RMB RMB RMB US$ Revenues earned through Phoenix FM 855 160 10 1 Advertising revenues earned from Tianbo 13,869 193 16 2 Advances provided to Tianbo 29 10,721 247 35 Revenues earned from Lilita 10,161 21 305 44 Loans provided to Particle and related interest income including the effect of foreign exchange 87,514 — — — Loans repaid by Particle (48,747 ) (84,083 ) — — Related interest income including the effect of foreign exchange arising from convertible loans to Particle (1,799 ) 8,993 — — Corporate administrative expenses charged by Particle (725 ) (82 ) — — Sales of assets to Particle at carrying value 4,740 (413 ) — — Other income earned from Particle — — 1,990 286 Advertising revenues earned from Fengyi Technology — — 12,612 1,812 Revenue sharing fees charged by investees (111 ) (77 ) (62 ) (9 ) * As Tianbo has been consolidated starting from April 1, 2019, related party transactions with Tianbo in 2019 only included those incurred from January 1, 2019 to March 31, 2019. As of December 31, 2018 and 2019, the amounts of due from and due to related parties were as follows (in thousands): As of December 31, 2018 2019* 2019 RMB RMB US$ Amounts due from related parties: Due from CMCC (Note 3) 59,871 46,145 6,628 Due from Phoenix TV Group 10,489 10,224 1,469 Due from Particle, net 10,022 1,040 149 Due from Fengyi Technology — 1,900 273 Due from other investees, net 10,846 414 60 Total 91,228 59,723 8,579 Amounts due to related parties: Due to CMCC 605 3,668 527 Due to Phoenix TV Group 14,396 24,637 3,539 Due to Yitong Technology (Note 10) 6,500 — — Due to Fengyi Technology — 4,996 718 Due to Others 3,717 922 132 Total 25,218 34,223 4,916 * As Tianbo has been consolidated from April 1, 2019, the amounts of due from and due to related parties as of December 31, 2019 did not include those due from and due to Tianbo. The amounts due from Phoenix TV Group represent accounts receivable from Phoenix TV Group for the advertising services provided to its customers, and the amounts due to Phoenix TV Group represent resources or services provided by Phoenix TV Group, expenses paid by Phoenix TV Group on behalf of the Group, and expenses charged by Phoenix TV Group under the cooperation agreements (see Note 2 (a)). 24. Related Party Transactions (Continued) In January 2017, the Group granted an unsecured RMB74.0 million loan to Particle at an interest rate of 9.0% per annum and with maturity of twelve months (the “January 2017 Loan”). In November 2017, Particle repaid all of the principal and interests of the US$6.8 million loan granted to Particle in November 2016. In July 2018, Particle repaid all of the principal and interests of the January 2017 Loan. For the years ended December 31, 2017, 2018 and 2019, total interest income arising from loans provided to Particle, convertible loans due from Particle and bank interest expenses incurred by the Group but borne by Particle were RMB23.1 million, RMB9.9 million and nil, respectively. The Group made bad debt provision to receivable from Particle with a total amount of RMB11.2 million (US$1.6 million) for the year ended December 31, 2019, which were reduced from amounts due from related parties. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 25. Restricted Net Assets Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries, the VIEs and the subsidiaries of the VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries, the VIEs and the subsidiaries of the VIEs incorporated in the PRC are required to annually appropriate 10% of their net after-tax income to the general reserve fund or the statutory surplus fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, and in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), General Notes to Financial Statements The Company performed a test on the restricted net assets of the Company’s subsidiaries, the VIEs and the subsidiaries of the VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), General Notes to Financial Statement |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent Events On January 20, 2020, the Company entered into an agreement with the two shareholders of Particle, Long De Cheng Zhang Culture Communication (Tianjin) Co., Ltd., which later transferred its shares in Particle to Long De Cheng Zhang (Tianjin) Investment Management Center, and Long De Holdings (Hong Kong) Co., Limited (collectively, the “Long De Entities”), who notified the Company that they intended to exercise their co-sale rights under Particle’s existing shareholder agreement, or the Co-Sale Agreement. Pursuant to the Co-Sale Agreement, the Long De Entities would sell approximately 9.8 million preferred shares of Particle, or the Long De Sale Shares, to the Proposed Buyers for a total consideration of approximately US$20.7 million in cash and the number of Particle shares to be sold by the Company would be reduced accordingly. As a result, the Company would be expected to sell a total of 29.19% equity interest of Particle on an as-if converted basis, which reflected the completion of the issuance of additional shares under Particle's share incentive plan to the Proposed Buyers for a total consideration of approximately US$427.3 million in cash under the original SPA as amended by the Supplemental Agreement and the Co-Sale Agreement. The Co-Sale Agreement is subject to approval by the shareholders of the Company’s parent company, Phoenix Media Investment (Holdings) Limited. In 2020, novel coronavirus (“COVID-19”) has spread rapidly to many parts of China and other parts of the world. The pandemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Group’s revenue and workforce are concentrated in China. Consequently, the COVID-19 outbreak has adversely affected and may continue to adversely affect the Group’s business operations and its financial condition, operating results and cash flows for 2020, including but not limited to negative impact to the Group’s total revenues and slower collection of receivables and potential additional allowance for doubtful accounts or impairment to the Group’s long-term assets. Because of the significant uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation, principles of consolidation, and cost allocations | (a) Basis of presentation, principles of consolidation, and cost allocations The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and the subsidiaries of the VIEs. The consolidated financial statements have been prepared in accordance with U.S. GAAP and on a going concern basis. All significant transactions and balances among the Company, its subsidiaries, its VIEs and the subsidiaries of the VIEs have been eliminated upon consolidation. The Company consolidates the VIEs as required by Accounting Standards Codification (“ASC”) 810 Consolidation 2. Principal Accounting Policies (Continued) (a) Basis of presentation, principles of consolidation, and cost allocations (continued) The Group and Phoenix TV Group have engaged in various mutual cooperation activities in content, branding, promotions, technical support and corporate management. The Group and Phoenix TV Group entered into a Program Resource License Agreements and a Program Text/Graphics Resource License Agreements, or the Agreements, effective as of May 27, 2016 and expired on May 26, 2019, to grant the Group the license with priority over any third party to broadcast Phoenix TV Group’s copyrighted video content from three television channels of Phoenix TV Group and a non-exclusive license to use Phoenix TV Group’s copyrighted text and graphics. The fees payable to Phoenix TV Group by the Group are RMB10.0 million for the first year of the Agreements, which would incrementally increase by 15% for each subsequent year of the Agreements. The Agreements do not grant the Group the right to sublicense Phoenix TV Group’s copyrighted content to third parties. As such, the Group does not incur revenue sharing fee to Phoenix TV Group accordingly. After the expiration of the Agreements in May 2019, the Group entered into a supplemental agreement with Phoenix TV Group to extend the term of the Agreements to January 14, 2020. Subsequently, the Group entered into a program resource license and cooperation agreement with Phoenix TV Group on January 15, 2020, or the 2020 Program Resource License and Cooperation Agreement, to continue to use Phoenix TV Group’s copyrighted video content. The annual license fees payable to Phoenix TV Group under the 2020 Program Resource License and Cooperation Agreement are RMB2.0 million plus 50% of the revenue generated from the use of the licensed program resource in excess of RMB2.0 million. The 2020 Program Resource License and Cooperation Agreement have a term of two years and may be extended prior to expiration. The Group and Phoenix TV Group entered into new trademark license agreements in December 2017, which became effective on December 8, 2017 and will expire on December 7, 2020. Compared to the original trademark license agreements, effective from November 2009 and expired in December 2017, the new trademark license agreements no longer allow the Group to use the double-phoenix logo of Phoenix TV Group on a stand-alone basis and have increased the annual license fee payable to Phoenix TV Group from a total of US$10,000 to the greater of 2% of the annual revenues of Tianying Jiuzhou and Yifeng Lianhe or US$100,000 for each company. Apart from the above cooperation agreements, Phoenix TV Group also paid certain expenses on behalf of the Group, such as data line usage and other general and administrative expenses, which the Group needed to settle with Phoenix TV Group based on the actual amount, and were recorded in the consolidated statements of comprehensive income/(loss). The Group also earned and recorded advertising revenues from Phoenix TV Group by providing joint advertising campaign solutions together with Phoenix TV Group to Phoenix TV Group’s advertisers or from providing the advertising and promotion services directly to Phoenix TV Group by entering into advertising-for-advertising barter transactions. |
Use of estimates | (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Group bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Business combinations and noncontrolling interests | (c) Business combinations and noncontrolling interests The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 Business Combinations 2. Principal Accounting Policies (Continued) (c) Business combinations and noncontrolling interests (continued) In a business combination achieved in stages, the Group re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of comprehensive income/(loss). When there is a change in ownership interests or a change in contractual arrangements that results in a loss of control of a subsidiary, the Group deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Group’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly, to the Group. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Group, the noncontrolling interest is classified as mezzanine equity. Transactions with changes in the Group’s ownership interest while it retains its controlling financial interest in its subsidiary shall be accounted for as equity transactions. Therefore, no gain or loss shall be recognized in the consolidated statements of comprehensive income/(loss). The carrying amount of the noncontrolling interest shall be adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted shall be recognized in equity attributable to the Group. Consolidated net income/(loss) in the consolidated statements of comprehensive income/(loss) includes net income or loss attributable to noncontrolling interests. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to the subsidiaries’ shares, are also recorded as noncontrolling interests in the Group’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. |
Foreign currency translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The Company’s operations in the PRC and other regions use their respective currencies as their functional currencies. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use U.S. dollars or Hong Kong dollars as their functional currency, have been translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”). Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and have been shown as a component of other comprehensive loss or income in the consolidated statements of shareholders’ equity and the consolidated statements of comprehensive income/(loss). Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies on the balance sheet date are remeasured at the applicable rates of exchange in effect on that date. Foreign currency exchange gain or loss resulting from the settlement of such transactions and from remeasurement at period-end is recognized in foreign currency exchange gain or loss in the consolidated statements of comprehensive income/(loss). |
Convenience translation | (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB6.9618 on December 31, 2019 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. 2. Principal Accounting Policies (Continued) |
Fair value of financial instruments | (f) Fair value of financial instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2— Include other inputs that are directly or indirectly observable in the marketplace Level 3— Unobservable inputs which are supported by little or no market activity U.S. GAAP describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. In some circumstances, a combined approach of the aforementioned three approaches may be used to measure the fair values. The Group’s financial instruments include cash equivalents, term deposits, short term investments, restricted cash, accounts receivable, amounts due from related parties, prepayments and other current assets, financial assets — contingent returnable consideration, available-for-sale debt investments, equity investments without readily determinable fair values, forward contract, accounts payable, amounts due to related parties, salary and welfare payable, accrued expense, short-term bank loans and other current liabilities and other non-current assets. Refer to Note 21 for details. |
Cash and cash equivalents | (g) Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits, time deposits and highly liquid investments placed with banks or other financial institutions, which are unrestricted to withdrawal or use, and which have original maturities of three months or less. |
Term deposits, short term investments | (h) Term deposits, short term investments Term deposits represent term deposits placed with banks with original maturities of more than three months and up to one year. Short term investments represent investments in financial instruments with a variable interest rate indexed to performance of underlying assets and investments that the Group has positive intent and ability to hold to maturity, all of which are with original maturity of less than 12 months. In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Fair value is estimated based on quoted prices of similar products provided by banks at the end of each period. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Please see Note 21 for additional information. |
Restricted cash | (i) Restricted cash Restricted cash represents deposits placed as security for banking facilities granted to the Group, and deposits placed in accounts co-managed with third-parties related to the real estate services, which are restricted to withdrawal or usage. 2. Principal Accounting Policies (Continued) |
Accounts receivable, net | (j) Accounts receivable, net Accounts receivable is the Group’s right to consideration that is unconditional, and the right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. The carrying value of accounts receivable is reduced by an allowance that reflects the Group’s best estimate of the amounts that will not be collected. Many factors are considered in estimating the general allowance, including but not limited to reviewing accounts receivable balances, historical bad debt rates, aging analysis, customer credit worthiness and industry trend analysis. The Group also makes the specific allowance if there is evidence showing that the receivable is unlikely to be collected. Accounts receivable balances are written off against the allowance when they are determined to be uncollectible. All accounts receivable balances are presented as accounts receivables, net in the consolidated balance sheets. Refer to Note 5 for details. |
Convertible loans due from a related party | (k) Convertible loans due from a related party Convertible loans due from a related party represent short-term loans advanced to a related party of which the Group may at its option to convert all or a portion into preferred shares. The Group has determined that the convertible loans are not within the scope ASC 320 Investment — debt and equity securities Receivables |
Property and equipment, net | (l) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated over the following estimated useful lives on a straight-line basis: Estimated Useful Lives Computers 3 years Equipment, furniture and motor vehicles 5 years Leasehold improvements Lesser of lease terms or the estimated useful lives of the assets Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss). |
Intangible assets, net | (m) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets mainly consist of computer software purchased from unrelated third parties, operating rights for licensed games, licensed copyrights of reading content, audio content, user base, and trademark and domain names. Intangible assets are stated at cost less impairment and accumulated amortization, which is computed using the straight-line method over the estimated useful lives of the assets. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Estimated Useful Lives Computer software 5 years Trademark and domain names 10 years Licensed copyrights of reading content Lesser of the licensed period or 5 years Audio content 5 years User base 0.8 years License and licensed games Estimated life cycle The Group amortizes the licensed copyrights in “cost of revenues” on a straight-line basis. 2. Principal Accounting Policies (Continued) |
Available-for-sale debt investments | (n) Available-for-sale debt investments In accordance with ASC 320 Investments-Debt and Equity Securities |
Equity investments | (o) Equity investments Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323 Investments-Equity Method and Joint Ventures The Group adopted ASU 2016-1 Recognition and Measurement of Financial Assets and Financial Liabilities Investments-Other: Cost Method Investments An impairment loss on the equity investments is recognized in the consolidated statements of comprehensive income/(loss) when the decline in value is determined to be other-than-temporary. 2. Principal Accounting Policies (Continued) |
Goodwill | (p) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Group first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the quantitative impairment test is performed. In performing the two-step quantitative impairment test, the first step compares the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, allocation of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment to have a significant |
Impairment of long-lived assets | (q) Impairment of long-lived assets Long-lived assets such as property and equipment and intangible assets are reviewed for impairment whenever events or changes in the circumstances indicate that the carrying value of an asset may not be recoverable. When these events occur, the Group assesses the recoverability of the long-lived assets by comparing the carrying amount to the estimated future undiscounted cash flows associated from the use of the asset and its eventual disposition, and recognize an impairment of long-lived assets when the carrying value of such assets exceeds the estimated future undiscounted cash flows such assets is expected to generate. If the Group identifies an impairment, the Group reduces the carrying amount of the assets or asset group to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. 2. Principal Accounting Policies (Continued) |
ASC 606, Revenue from Contracts with Customers | (r) ASC 606 Revenue from Contracts with Customers On January 1, 2018, the Group adopted ASC 606 Revenue from Contracts with Customers Revenue Recognition In 2019, the Group re-classified paid services revenues (see Note 2(s)). For comparison purposes, the revenues from paid services for the years of 2017 and 2018 have been retrospectively re-classified. The following table presents the Group’s revenues disaggregated by products and services (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net advertising revenues 1,353,480 1,198,271 1,263,485 181,488 Paid services revenues 221,612 179,108 267,577 38,435 Revenues from paid contents 77,675 95,044 205,360 29,498 Revenues from games 27,463 14,727 14,169 2,035 Revenues from MVAS 108,567 55,037 18,499 2,657 Revenues from others 7,907 14,300 29,549 4,245 Total 1,575,092 1,377,379 1,531,062 219,923 Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Contract asset represents the Group’s right to consideration in exchange for goods or services that it has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. Contract assets as of December 31, 2018 and 2019 were not material. If a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional (that is, a receivable), before the Group transfers a good or service to the customer, the Group shall present the contract as a contract liability when the payment is made or the payment is due (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which it has received consideration (or an amount of consideration is due) from the customer. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period and primarily consist of fees received from advertisers. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Contract liability is presented as advances from customers in the balance sheet. Revenues recognized for the years ended December 31, 2018 and 2019 that were included in the contract liability balance at the beginning of the period were RMB47.7 million and RMB44.7 million (US$6.4 million), respectively. 2. Principal Accounting Policies (Continued) (r) ASC 606 Revenue from Contracts with Customers (continued) The assets recognized for costs incurred to fulfill contracts shall be amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As of December 31, 2018 and 2019, the costs incurred to fulfill contracts recognized as assets were immaterial. Practical expedients The Group has used the following practical expedients as allowed under ASC 606: i. The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed as substantially all of the Group’s contracts have duration of one year or less. ii. Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. iii. The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. |
Revenue recognition | (s) Revenue recognition According to ASC 606, revenue is recognized when control of the promised services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those services. The recognition of revenues involves certain management judgments, including the estimation of the fair value of the noncash transaction, estimated lives of virtual items purchased by game players, and volume sales rebates. The Group does not believe that significant management judgments are involved in revenue recognition, but the amount and timing of the Group’s revenues could be different for any period if management made different judgments or utilized different estimates. The Group adopts the five-step model for recognizing revenue from contracts with customers: Step 1: Identify the contract(s) with a customer, Step 2: Identify the performance obligations in the contract, Step 3: Determine the transaction price, Step 4: Allocate the transaction price to the performance obligations in the contract, Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. (i) Advertising revenues are derived principally from advertising contracts with customers where the advertisers pay to place their advertisements on the Group’s ifeng.com, mobile Internet website i.ifeng.com and its mobile applications in different formats over a particular period of time. Such formats generally include but are not limited to banners, news feed, text-links, videos, logos, buttons and rich media. The Group’s performance obligations are to place the customers’ advertisements on different spots, in different formats and at different times. The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where standalone selling price is not directly observable, the Group generally estimates selling prices based on the publicly published advertising rate card, times the relevant discount rates, taking into considerations of the historical trend, the pricing of advertising areas sold with similar popularities, advertisements with similar formats and quoted prices from competitors, and other relevant market conditions. 2. Principal Accounting Policies (Continued) (s) Revenue recognition (continued) (i) The Group recognizes revenue on the satisfied performance obligations and defers the recognition of revenue for the estimated value of the undelivered elements until the remaining performance obligations have been satisfied. When all of the elements within an arrangement are delivered uniformly over the agreement period, the revenues are recognized on a straight-line basis over the contract period. Currently the advertising business has three main types of pricing models, consisting of the Cost Per Day (“CPD”) model, the Cost Per Impression (“CPM”) model, and the Cost Per Click (“CPC”) model. CPD model Under the CPD model, a contract is signed to establish a fixed price for the advertising services to be provided over a period of time. Given the advertisers benefit from the displayed advertising evenly, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. CPM model Under the CPM model, the unit price for each qualifying display is fixed and stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Given that the fees are priced consistently throughout the contract and the unit prices are consistent with the Group’s pricing practices with similar customers, the Group recognizes revenue based on the fixed unit prices and the number of qualifying displays upon occurrence of display, provided and all revenue recognition criteria have been met. CPC model Under the CPC model, there is no fixed price for advertising services stated in the contract with the advertiser and the unit price for each click is auction-based. The Group charges advertisers on a per-click basis, when the users click on the advertisements. Given that the fees are priced consistently throughout the contract and the unit prices are consistent with the Group’s pricing practices with similar customers, the Group recognizes revenue based on qualifying clicks and the unit price upon the occurrence of a click, provided all revenue recognition criteria have been met. Agency service fees to third-party advertising agencies Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume of each individual agent with reference to their historical results. The sales rebate will reduce revenues recognized. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting sales rebates and net of value-added tax (“VAT”) and related surcharges. The Group believes that there will not be significant changes to its estimates of variable consideration. The Group has estimated and recorded RMB223.3 million, RMB215.2 million and RMB180.7 million (US$26.0 million) in agency service fees to third-party advertising agencies for the years ended December 31, 2017, 2018 and 2019, respectively. Noncash transactions The Group enters into contracts with certain customers involving consideration in a form other than cash. The noncash consideration (or promise of noncash consideration) shall be measured at fair value. If the Group cannot reasonably estimate the fair value of the noncash consideration, it shall measure the consideration indirectly by reference to the standalone selling price of the goods or services promised to the customer (or class of customer) in exchange for the consideration. The Group recognized revenue from noncash transactions involving exchanging advertising services for advertisement, content, technical, application pre-installation services and others amounted to RMB4.4 million, RMB17.8 million and RMB8.7 million (US$1.3 million) for the years ended December 31, 2017, 2018 and 2019, respectively, of which RMB4.7 million and RMB7.4 million (US$1.1 million) representing revenue from advertising-for-advertising barter transactions for the years ended December 31, 2018 and 2019, respectively. 2. Principal Accounting Policies (Continued) (s) Revenue recognition (continued) (ii) Paid services revenues Prior to 2019, paid services revenues comprised of (i) revenues from digital entertainment, which included MVAS and digital reading, and (ii) revenues from games and others, which included web-based games, mobile games, content sales, and other online and mobile paid services through the Group’s own platforms. Beginning from January 1, 2019, paid services revenues have been re-classified and now comprise of (i) revenues from paid contents, which includes digital reading, audio books, paid videos, and other content-related sales activities, (ii) revenues from games, which includes web-based games and mobile games, (iii) revenues from MVAS, and (iv) revenues from others. For comparison purposes, the revenues from paid services for the years of 2017 and 2018 have been retrospectively re-classified. Paid contents Paid contents revenues mainly comprise of revenues generated from digital reading, audio books, paid videos, and other content-related sales activities. Digital reading Digital reading revenues are derived from providing fee-based internet literatures from writers and digital format books licensed from third-party publishers to customers on both of the Group’s PC and mobile platforms, and on third-party platforms. Most revenues generated from digital reading are recorded on a gross basis and recognized evenly over the subscription period, or in the period in which a pay-per-view service is provided, as the Group is responsible for providing the desired services to the customers and has primary responsibility and broad discretion to establish price, and therefore the Group is considered the primary obligor in these transactions. Digital reading revenues generated from third-party platforms are recorded on a net basis. Audio books Audio books revenues are derived from the sale of copyright of audio books to third parties and licensing audio books to third parties. With respect to the sale of copyright of audio books, the Group is determined to be the primary obligor and accordingly, the Group records its revenues on a gross basis. With respect to the revenues that derived from licensing audio books to third parties, the Group evaluated and determined it is not the primary obligor in the service rendered to the end users and accordingly, the Group records its revenues based on the portion of the sharing of revenues that derives from third parties. The Group recognizes revenue on the satisfied performance obligations and defers the recognition of revenue for the estimated value of the undelivered elements until the remaining performance obligations have been satisfied. Paid videos The Group generates revenues from licensing video content to third parties. For such content sales transactions, the Group earns up-front fixed- amount license fees or revenue sharing fees based on pre-agreed percentage. The Group views the third parties as customers and recognizes revenues on a net basis during the licensing periods, provided that no significant obligation remains, collection of the receivables is reasonably assured and the amounts can be accurately estimated. 2. Principal Accounting Policies (Continued) (s) Revenue recognition (continued) (ii) Paid services revenues (continued) Games Games include web-based games and mobile games. Revenues from these services are recognized over the periods in which the services are performed, provided that no significant obligations remain, collection of the receivables is reasonably assured and the amounts can be accurately estimated. For web-based game services, all of the web-based games provided on the Group’s platforms are developed by third-party game developers and can be accessed and played by game players without downloading separate software. The Group primarily views the game developers to be its customers and considers its responsibility under its agreements with the game developers to be promotion of the game developers’ games. The Group collects payments from game players in connection with the sale of in-game virtual currencies and remits certain agreed-upon percentages of the proceeds to the game developers. Revenue from the sale of in-game virtual currency is recorded net of remittances to game developers and deferred until the estimated consumption date of the virtual items, which is within a short period of time, typically a few days, after purchase of the in-game virtual currency. MVAS MVAS revenues are derived from providing mobile phone users with mobile newspaper services, mobile game services delivered through the telecom operators’ platforms, mobile video services, wireless value-added services (“WVAS”) through telecom operators’ platforms. Revenues from MVAS are charged on a monthly or per-usage basis, and are recognized in the period in which the service is performed, provided that no significant obligation remains, collection of the receivables is reasonably assured and the amounts can be accurately estimated. Most revenues from mobile newspaper services, mobile video services and most WVAS are recorded on a net basis as the Group is acting as an agent of operators in these transactions. Others Other paid service revenues mainly comprise of revenues generated from E-commerce and online real estate related services. Revenues are recognized in the period in which the service is performed, provided that no significant obligation remains, collection of the receivables is reasonably assured and the amounts can be accurately estimated. |
Sales taxes and related surcharges and other surcharges | (t) Sales taxes and related surcharges and other surcharges The Group is subject to value-added tax (“VAT”) and related surcharges on the revenues earned for services provided in the PRC. The primary applicable rate of VAT is 6.0% for the years ended December 31, 2017, 2018 and 2019. The Group is also subject to a cultural development fee on the provision of advertising services in the PRC and the applicable tax rate is 3% of the net advertising revenues before July 1, 2019 and 1.5% after July 1, 2019. The VAT and the cultural development fee were included in the cost of revenues under ASC 605 for the year ended December 31, 2017, and have been recorded as a reduction item of revenues under ASC 606 since January 1, 2018. Other surcharges mainly comprised of urban maintenance and construction tax and education surcharges. The urban maintenance and construction tax are charged at 7%, 5% or 1% of the amount of VAT actually paid depending on where the taxpayer is located. Education surcharges are charged at 3% of the amount of VAT actually paid and local education surcharges are charged at 2% or 1% of the amount of VAT actually paid depending on where the taxpayer is located. The urban maintenance and construction tax, education surcharges and local education surcharges are recorded in the cost of revenues in the consolidated statements of comprehensive income/(loss). The sales taxes and related surcharges and other surcharges for the years ended December 31, 2017, 2018 and 2019 were RMB133.2 million, RMB127.6 million and RMB128.3 million (US$18.4 million), respectively. 2. Principal Accounting Policies (Continued) |
Cost of revenues | (u) Cost of revenues The Group’s cost of revenues consists primarily of (i) revenue sharing fees, including service fees retained by mobile telecommunications operators, which are recognized as cost of revenues for revenues recorded on gross basis and revenue sharing fees paid to the Group’s channel and content partners, (ii) content and operational costs, including personnel-related cost associated with content production and certain advertisement sales support personnel, content procurement costs to third-party professional media companies and to Phoenix TV Group, direct costs related to in-house content production, channel testing costs, rental cost, depreciation and amortization, the urban maintenance and construction tax, education surcharges and local education surcharges, and other miscellaneous costs, and (iii) bandwidth costs. |
Sales and marketing expenses | (v) Sales and marketing expenses Sales and marketing expenses comprise primarily of: (i) personnel-related expenses including sales commissions related to the sales and marketing personnel; (ii) advertising and promotion expenses including traffic acquisition expenses; and (iii) rental expense, depreciation and amortization expenses. The Group expenses advertising costs as incurred. Total advertising and promotion expenses including traffic acquisition expenses were RMB329.7 million, RMB376.7 million and RMB385.4 million (US$55.4 million), for the years ended December 31, 2017, 2018 and 2019, respectively. Total advertising and promotion expenses from advertising-for-advertising barter transactions of RMB4.3 million and RMB7.3 million (US$1.0 million) were recognized in the years ended December 31, 2018 and 2019, respectively. |
Technology and product development expenses | (w) Technology and product development expenses Technology and product development expenses mainly consist of: (i) personnel-related expenses associated with the development of, enhancement to, and maintenance of the Group’s PC websites, mobile applications and mobile websites; (ii) expenses associated with new technology and product development and enhancement; and (iii) rental expense and depreciation of servers. The Group expenses technology and product development expenses as incurred for all the years presented. |
Operating leases and adoption of ASU 2016-02 | (x) Operating leases and adoption of ASU 2016-02 On February 25, 2016, the FASB issued ASU 2016-02 Leases (Topic 842) The Group applied ASU 2016-02 beginning from January 1, 2019 and elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Group used modified retrospective method and did not recast the prior comparative periods. Under the new lease standard, the Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement. As a result of the adoption, the Group recorded a right-of-use asset of approximately RMB99.5 million and a lease liability of approximately RMB99.5 million upon the adoption of ASU 2016-02 on January 1, 2019, primarily related to the Group’s leased office space. The adoption had no material impact on the Group’s consolidated statements of comprehensive income/(loss) for the year ended December 31, 2019 or the opening balances of retained earnings as of January 1, 2019. 2. Principal Accounting Policies (Continued) (x) Operating leases and adoption of ASU 2016-02 (continued) As of December 31, 2019, the Group’s operating leases had a weighted average remaining lease term of 2.37 years and a weighted average discount rate of 5.60%. Future lease payments under operating leases as of December 31, 2019 were as follows (in thousands): Operating Leases RMB US$ Year ending December 31, 2020 44,109 6,336 2021 35,706 5,129 2022 16,052 2,306 2023 291 42 Total future lease payments 96,158 13,813 Less: Imputed interest 5,895 848 Total lease liability balance 90,263 12,965 Future lease payments under operating leases as of December 31, 2018 were as follows (in thousands): Operating Leases RMB Year ending December 31, 2019 38,222 2020 38,270 2021 38,314 2022 18,980 Total future lease payments 133,786 Rent expense under operating leases was RMB37.0 million and RMB37.6 million for the years ended December 31, 2017 and 2018, respectively. Operating lease costs and expenses for the year ended December 31, 2019 was RMB40.4 million (US$5.8 million), which excluded costs and expenses of short-term contracts. Short-term lease costs and expenses for the year ended December 31, 2019 was RMB1.9 million (US$0.3 million). Supplemental cash flow information related to operating leases was as follows (in thousands) For the Year Ended December 31, 2019 RMB US$ Cash payments for operating leases 37,713 5,417 Right-of-use assets obtained in exchange for operating lease liabilities 22,388 3,216 |
Share-based compensation | (y) Share-based compensation The Group has incentive plans for the granting of share-based awards, such as share options and restricted shares. The Group measures the cost of employee services received in exchange for share-based compensation at the grant date fair value of the award. The Group recognizes the share-based compensation as costs or expenses in the consolidated statements of comprehensive income/(loss), net of estimated forfeitures, on a graded-vesting basis over the vesting term of the awards. The Group recognizes compensation cost for awards with performance conditions if and when the Group concludes that it is probable that the performance condition will be achieved and should reassess the probability of vesting at each reporting period for awards with performance conditions and adjust compensation cost based on its probability assessment. The Group recognizes a cumulative catch-up adjustment for changes in its probability assessment in subsequent reporting periods. 2. Principal Accounting Policies (Continued) (y) Share-based compensation (continued) The share-based awards to nonemployees are accounted for based on the fair value of the consideration received or the fair value of the award issued, whichever is more reliably measurable. Share-based compensation expense for share options granted to non-employees is measured at fair value at the earlier of the performance commitment date or the date service is completed and recognized over the period during which the service is provided. The Company applies the guidance in ASU 2018-07 Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Cancellation of an award accompanied by the concurrent grant of a replacement award is accounted for as a modification of the terms of the cancelled award (“modification awards”). The compensation costs associated with the modification awards are recognized if either the original vesting condition or the new vesting condition has been achieved. Such compensation costs cannot be less than the grant-date fair value of the original award. The incremental compensation cost is measured as the excess of the fair value of the replacement award over the fair value of the cancelled award at the cancellation date. Therefore, in relation to the modification awards, the Group recognizes share-based compensation over the vesting periods of the new awards, which comprises (i) the amortization of the incremental portion of share-based compensation over the remaining vesting term and (ii) any unrecognized compensation cost of original award, using either the original term or the new term, whichever is higher for each reporting period. The Group adopts the Black-Scholes option pricing model to determine the fair value of share options, and determines the fair value of restricted share and restricted share units based on the fair value of the underlying ordinary shares at the grant date considering the dilutive effect of restricted share and restricted share units. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. The Group uses historical data to estimate pre-vesting option and restricted share unit forfeitures and record share-based compensation only for those awards that are expected to vest. Refer to Note 19 for further information regarding share-based compensation assumptions and expenses. In 2019, the Company declared a special cash compensation to its option holders, concurrent with the As the Company’s share options are not dividend-protected award, the option holders have no rights to participate in all dividends before excising the options. The compensation cost of RMB31.6 million (US$4.5 million) were recognized as 2019. |
Income taxes | (z) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income/(loss) in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group did not have significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of and for the years ended December 31, 2017, 2018 and 2019. Refer to Note 17 for details of the Group’s tax positions. 2. Principal Accounting Policies (Continued) |
Employee social security and welfare benefits | (aa) Employee social security and welfare benefits The Company’s subsidiaries and consolidated VIEs in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. The relevant labor regulations require the Company’s subsidiaries and consolidated VIEs in the PRC to pay the local labor and social welfare authorities monthly contributions at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor and social welfare authorities are responsible for meeting all retirement benefits obligations and the Company’s subsidiaries and consolidated VIEs in the PRC have no further commitments beyond their monthly contributions. The contributions to the plan are expensed as incurred. Employee social security and welfare benefits included as cost and expenses in the consolidated statements of comprehensive income/(loss) were RMB79.4 million, RMB84.3 million and RMB113.7 million (US$16.3 million) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Other income - Others, net | (ab) Other income — Others, net Other income —Others, net mainly represent government subsidies which primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions. Such income has been recognized when the grants are received and no further conditions need to be met. |
Statutory reserves | (ac) Statutory reserves In accordance with the laws applicable to China’s Foreign Investment Enterprises, those of the Company’s China-based subsidiaries that are considered under PRC law to be a wholly foreign-owned enterprise are required to make appropriations from their after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”)) to non-distributable reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the respective company. Appropriations to the other two reserve funds are at the respective companies’ discretion. In accordance with the China Company Laws, those China-based subsidiaries of the Company that are considered under PRC law to be domestically funded enterprises, as well as the Company’s VIEs are required to make appropriations from their after-tax profit (as determined under PRC GAAP) to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is at the discretion of the respective company. General reserve fund and statutory surplus fund are restricted for set off against losses, expansion of production and operation or increase in the registered capital of the respective company. The Group has made appropriations of RMB3.3 million, RMB6.4 million and RMB1.0 million (US$0.1 million) to these funds for the years ended December 31, 2017, 2018 and 2019, respectively. |
Related parties | (ad) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholders, or a related corporation. |
Dividends | (ae) Dividends Dividends are charged to retained earnings when declared. No dividends were declared for the years ended December 31, 2017 and 2018. In 2019, the Group declared a special cash dividend of US$0.1714 per ordinary share, equivalent to US$1.3712 per ADS, totaling approximately US$100 million, and had paid the dividends to shareholders in December 2019. 2. Principal Accounting Policies (Continued) |
Net income/(loss) per share | (af) Net income/(loss) per share The Group computes net income/(loss) per Class A and Class B ordinary share in accordance with ASC 260-10 Earnings Per Share: Overall The liquidation and dividend rights of the holders of the Company’s Class A and Class B ordinary shares are identical, except with respect to voting. As the liquidation and dividend rights are identical, the net incomes are allocated on a proportionate basis. Basic net income/(loss) per share is computed by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares and contingently issuable shares outstanding during the period except that it does not include unvested restricted shares or repurchased ordinary shares subject to cancellation. Diluted net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive potential ordinary shares, if any, by the weighted average number of ordinary shares outstanding and dilutive potential ordinary shares during the period. Potential ordinary shares are excluded in the denominator of the diluted net income/(loss) per share calculation if their effects would be anti-dilutive. |
Comprehensive income/(loss) | (ag) Comprehensive income/(loss) Comprehensive income/(loss) is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income is reported in the consolidated statements of comprehensive income/(loss). Accumulated other comprehensive loss or income, as presented on the Group’s consolidated balance sheets, includes the foreign currency translation adjustment and fair value remeasurement for available-for-sale debt investments. The tax effects of pre-tax changes to other comprehensive income should be recorded net against the pre-tax changes in other comprehensive income. |
Segment reporting | (ah) Segment reporting The Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”) in deciding how to allocate resources and in assessing performance. The Group’s CODM has been identified as the Chief Executive Officer. As the Group’s long-lived assets and revenues are substantially located in and derived from the PRC, no geographical segments are presented. The Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run the Group’s business operations, which include, but are not limited to, customer base, homogeneity of products and technology. The Group’s operating segments are based on its organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. |
Recent accounting pronouncements | (ai) Recent accounting pronouncements Financial Instruments-Credit Losses. In June 2016, the FASB issued ASU 2016-13 Financial Instruments-Credit Losses (Topic 326) , which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Group will adopt ASU 2016-13 effective January 1, 2020 on a modified retrospective basis and do not expect any material impact on the balance sheets and the consolidated statements of comprehensive income/(loss) as a result of adopting the new standard. 2. Principal Accounting Policies (Continued) (ai) Recent accounting pronouncements (continued) Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . The amendments of ASU 2018-13 test the concepts in the proposed Concepts Statement and improve the effectiveness of disclosure requirements on fair value measurement by using those concepts. This guidance is effective beginning after December 15, 2019, including interim periods within that fiscal year. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. The Group is currently evaluating the impact and does not expect it to have a significant impact on its consolidated financial statements and related disclosures. Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities . Current GAAP provides a private company with an accounting alternative not to apply VIE guidance to leasing arrangements with entities under common control if certain criteria are met. The amendments expand the accounting alternative to include all private company common control arrangements if the common control parent and the legal entity being evaluated for consolidation are not public business entities. The amendments for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). This guidance is effective beginning after December 15, 2019, including interim periods within that fiscal year. All entities are required to apply the amendments retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Early adoption is permitted. The Group is currently evaluating the impact that the standard and does not expect it to have a significant impact on its consolidated financial statements and related disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of major subsidiaries, VIEs and subsidiaries of VIEs | Major subsidiaries, VIEs and the subsidiaries of the VIEs as of December 31, 2019 are set out below: Percentage of Direct or Indirect Place of Date of Economic Principal Name Incorporation Incorporation Ownership Activity Direct subsidiaries: Phoenix Satellite Television Information Limited British Virgin Islands (“BVI”) September 1, 1999 100 % Investment holding Phoenix New Media (Hong Kong) Company Limited Hong Kong February 24, 2011 100 % Advertising Phoenix New Media (Hong Kong) Information Technology Company Limited Hong Kong April 22, 2014 100 % Investment holding Fread Limited* Cayman Island May 20, 2014 100 % Investment holding Indirect subsidiaries: Fenghuang On-line (Beijing) Information Technology Co., Ltd. (“Fenghuang On-line”) PRC December 20, 2005 100 % Technical consulting Beijing Fenghuang Yutian Software Technology Co., Ltd. (“Fenghuang Yutian”) PRC June 15, 2012 100 % Software development Fenghuang Feiyang (Beijing) New Media Information Technology Co., Ltd. (“Fenghuang Feiyang”) PRC October 25, 2013 100 % Advertising I Game (Hong Kong) Company Limited Hong Kong June 10, 2014 100 % Game Beijing Fenghuang Borui Software Technology Co., Ltd. (“Fenghuang Borui”) PRC October 13, 2014 100 % Software development Qieyiyou (Beijing) Information Technology Co., Ltd. (“Qieyiyou”) PRC November 28, 2014 100 % Game Tianjin Fengying Hongda Culture Communication Co., Ltd. (“Fengying Hongda”) PRC March 13, 2017 100 % Advertising VIEs: Beijing Tianying Jiuzhou Network Technology Co., Ltd. (“Tianying Jiuzhou”) PRC April 18, 2000 100 % Advertising and paid services Yifeng Lianhe (Beijing) Technology Co., Ltd. (“Yifeng Lianhe”) PRC June 16, 2006 100 % Digital entertainment Beijing Chenhuan Technology Co., Ltd. (“Chenhuan”) PRC June 10, 2014 100 % Game Subsidiaries of VIEs: Beijing Tianying Chuangzhi Advertising Co., Ltd. (“Tianying Chuangzhi”) PRC February 8, 2010 100 % Advertising Beijing Fengyu Network Technology Co., Ltd. (“Fengyu Network”)** PRC June 1, 2012 100 % Digital entertainment Beijing Yitian Xindong Network Technology Co., Ltd. (“Yitian Xindong”) PRC September 05,2008 51 % Digital entertainment Beijing Fenghuang Tianbo Network Technology Co., Ltd. (“Tianbo”) PRC May 31, 2013 50 % Advertising * In January 2018, the name of “I Game Limited” was changed to “Fread Limited”. ** In April 2017, the name of “Beijing Fenghuang Interactive Entertainment Network Technology Co., Ltd.” was changed to “Beijing Fengyu Network Technology Co., Ltd.”. |
Schedule of summarized assets, liabilities, results of operations and cash flows of the consolidated VIEs | The following tables set forth the summarized assets, liabilities, results of operations and cash flows of the consolidated VIEs (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Current assets 979,025 1,223,454 175,738 Non-current assets 530,118 588,327 84,508 Total assets 1,509,143 1,811,781 260,246 Accounts payable 135,407 132,690 19,060 Amounts due to related parties 11,531 24,194 3,475 Amounts due to inter-company entities 631,392 1,030,231 147,983 Advances from customers 31,686 56,212 8,074 Taxes payable 48,697 82,475 11,847 Salary and welfare payable 40,949 82,095 11,792 Accrued expenses and other current liabilities 189,228 234,004 33,613 Current liabilities 1,088,890 1,641,901 235,844 Non-current liabilities 28,796 52,087 7,482 Total liabilities 1,117,686 1,693,988 243,326 For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenues 769,943 591,495 889,084 127,709 Net loss (7,760 ) (112,146 ) (174,661 ) (25,089 ) For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net cash (used in)/provided by operating activities (3,950 ) 100,256 (227,916 ) (32,738 ) Net cash provided by/(used in) investing activities 65,600 (164,190 ) 129,697 18,630 Net cash (used in)/provided by financing activities (2,000 ) — 224,299 32,219 |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Estimated useful lives of property and equipment | Estimated Useful Lives Computers 3 years Equipment, furniture and motor vehicles 5 years Leasehold improvements Lesser of lease terms or the estimated useful lives of the assets |
Schedule of estimated useful live of intangible assets, net | Estimated Useful Lives Computer software 5 years Trademark and domain names 10 years Licensed copyrights of reading content Lesser of the licensed period or 5 years Audio content 5 years User base 0.8 years License and licensed games Estimated life cycle |
Schedule of revenues disaggregated by products and services | The following table presents the Group’s revenues disaggregated by products and services (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net advertising revenues 1,353,480 1,198,271 1,263,485 181,488 Paid services revenues 221,612 179,108 267,577 38,435 Revenues from paid contents 77,675 95,044 205,360 29,498 Revenues from games 27,463 14,727 14,169 2,035 Revenues from MVAS 108,567 55,037 18,499 2,657 Revenues from others 7,907 14,300 29,549 4,245 Total 1,575,092 1,377,379 1,531,062 219,923 |
Summary of Future Lease Payments under Operating Leases | Future lease payments under operating leases as of December 31, 2019 were as follows (in thousands): Operating Leases RMB US$ Year ending December 31, 2020 44,109 6,336 2021 35,706 5,129 2022 16,052 2,306 2023 291 42 Total future lease payments 96,158 13,813 Less: Imputed interest 5,895 848 Total lease liability balance 90,263 12,965 |
Summary of Future Lease Payments under Operating Leases | Future lease payments under operating leases as of December 31, 2018 were as follows (in thousands): Operating Leases RMB Year ending December 31, 2019 38,222 2020 38,270 2021 38,314 2022 18,980 Total future lease payments 133,786 |
Summary of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows (in thousands) For the Year Ended December 31, 2019 RMB US$ Cash payments for operating leases 37,713 5,417 Right-of-use assets obtained in exchange for operating lease liabilities 22,388 3,216 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisition | |
Schedule of unaudited pro forma summary | The following unaudited pro forma summary presents consolidated information of the Group as if the business combination had occurred on January 1, 2018 (in thousands): Pro Forma Year Ended December 31, 2018 2019 RMB RMB (unaudited) (unaudited) Revenue 1,579,211 1,566,245 Net (loss)/income attributable to Phoenix New Media Limited (50,577 ) 731,007 |
Yitian Xindong | |
Acquisition | |
Schedule of allocation of purchase price | The allocation of the purchase price as of the date of acquisition was summarized as follows (in thousands): Amount RMB Amortization Period Purchase consideration 144,100 Net assets acquired, excluding intangible assets and the related deferred tax (Note a) 21,803 Deferred tax assets 8,576 Less: valuation allowance (8,576 ) Amortizable intangible assets —User base 5,100 0.8 year —Trademark and domain name 38,300 10 years —Licensed copyrights of reading content 49,200 Not exceeding 3 years, with a weighted-average amortization period of 2.34 years Goodwill (Note b) 338,288 Financial assets — contingent returnable consideration (Note c) 18,211 Deferred tax liabilities (Note d) (7,390 ) Noncontrolling interests (319,412 ) Total 144,100 Note: (a) Net assets acquired included cash and cash equivalents with an amount of RMB10.9 million (US$1.6 million). (b) Goodwill arising from this acquisition was attributable to the synergies between Yitian Xindong and the Group’s multiple business streams. The goodwill recognized was not expected to be deductible for income tax purpose. (c) The financial assets represented the fair value of the Group’s right to receive the contingent returnable consideration, subject to certain price adjustment mechanisms based on Yitian Xindong’s operating and financial performance in 2019 and 2020. (d) Deferred tax liabilities represented the tax effect of the amortizable intangible assets from the Acquisition. |
Tianbo | |
Acquisition | |
Schedule of allocation of purchase price | The allocation of the purchase price as of the date of acquisition is summarized as follows (in thousands): Amount RMB Non-cash consideration 5,900 Fair value of previously held equity interests in Tianbo 17,012 Total purchase consideration 22,912 Net assets acquired (Note a) 17,138 Goodwill 22,786 Noncontrolling interests (17,012 ) Total 22,912 Note: (a) Net assets acquired included cash, cash equivalents and restricted cash with an amount of RMB175.5 million (US$25.2 million). There were no material amortizable intangible assets (e.g. trademark and domain names, customer relationship) identified and recognized as Tianbo has no independent trademark and domain name or exclusive service agreement signed between Tianbo and its customers. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable Net [Abstract] | |
Balance of accounts receivable | The following table sets out the balance of accounts receivable as of December 31, 2018 and 2019 (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Accounts receivable, gross 562,797 757,158 108,759 Allowance for doubtful accounts (78,684 ) (118,886 ) (17,077 ) Accounts receivable, net 484,113 638,272 91,682 |
Movement of the allowance for doubtful accounts | The following table presents the movement of the allowance for doubtful accounts (in thousands): 2017 2018 2019 2019 RMB RMB RMB US$ Balance as of January 1, 91,348 65,454 78,684 11,302 Additional provision/(reversal) charged to bad debt expenses, net (9,137 ) 22,473 43,932 6,311 Write-off of bad debt provision (16,757 ) (9,243 ) (3,730 ) (536 ) Balance as of December 31, 65,454 78,684 118,886 17,077 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Summary of prepayments and other current assets | The following is a summary of prepayments and other current assets (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Prepaid rental and deposits 2,799 12,737 1,830 Prepayments to suppliers and other business related expenses 60,548 34,316 4,929 Receivables related to exercise of employee options 4,101 4,003 575 Costs to fulfill contracts with customers 157 1,686 242 Financial assets — contingent returnable consideration (Note 4) 18,211 98,473 14,145 Long-term receivable from an unrelated party due within one year — 6,500 934 Others 3,147 5,153 739 Total 88,963 162,868 23,394 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of property and equipment, net | The following is a summary of property and equipment, net (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Computers, equipment and furniture 199,591 218,284 31,355 Motor vehicles 5,971 6,100 876 Leasehold improvements 38,821 42,408 6,092 Total 244,383 266,792 38,323 Less: accumulated depreciation (148,752 ) (165,142 ) (23,722 ) Net book value 95,631 101,650 14,601 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Summary of intangible assets, net | The following table summarizes the Group’s intangible assets, net (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Computer software 23,233 20,653 2,967 License and licensed games 7,899 132 19 User base 5,100 5,100 733 Licensed copyrights of reading content 49,200 89,084 12,796 Audio content — 9,639 1,385 Trademark and domain names 38,354 38,354 5,509 Total 123,786 162,962 23,409 Less: accumulated amortization (24,035 ) (58,082 ) (8,344 ) accumulated impairment (2,303 ) (5,600 ) (804 ) Net book value 97,448 99,280 14,261 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Investments [Abstract] | |
Condensed financial information of equity method investments | The Group summaries the condensed financial information of the Group’s equity method investments as a group below in accordance with Rule 4-08 of Regulation S-X (in thousands): For the Years Ended December 31, 2017 2018 2019* 2019 RMB RMB RMB US$ Operating data: Revenues 171,335 220,656 37,987 5,456 Gross profit 101,424 140,701 25,874 3,717 Net income/(loss) 2,562 1,747 (21,583 ) (3,100 ) Net income/(loss) attributable to the equity method investees 2,562 577 (21,442 ) (3,080 ) PNM’s share of net income/(loss) 6,796 5,352 (3,968 ) (570 ) * Tianbo has been a subsidiary of the Company’s VIE and no longer an equity method investee since April 1, 2019. The operating data here only included the data of Tianbo from January 1, 2019 to March 31, 2019. As of December 31, 2018 2019* 2019 RMB RMB US$ Balance sheet data: Current assets 249,386 3,251 467 Non-current assets 20,428 17 2 Current liabilities 286,695 59,685 8,573 * Tianbo has been a subsidiary of the Company’s VIE and no longer an equity method investee since April 1, 2019. The balance sheet data here did not include the data of Tianbo as of December 31, 2019. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill are follows: Yitian Xindong Business Tianbo Business Total RMB RMB RMB Balance as of December 31, 2017 — — — Goodwill acquired 338,288 — 338,288 Balance as of December 31, 2018 338,288 — 338,288 Goodwill acquired — 22,786 22,786 Balance as of December 31, 2019 338,288 22,786 361,074 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets Noncurrent [Abstract] | |
Summary of other non-current assets | The following is a summary of other non-current assets (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Rental deposits 8,355 8,330 1,197 Non-current portion of prepayments to suppliers and other business related expenses 9,099 8,698 1,249 Long-term receivable from an unrelated party 6,000 — — Others — 2,831 407 Total 23,454 19,859 2,853 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities Current [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities are comprised of (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Deposits from advertising agencies and customers 13,760 16,029 2,302 Accrued professional fees 7,059 7,869 1,130 Advertising and promotion expenses payables and accruals 83,805 73,533 10,562 General operating expenses payables and accruals 36,955 71,350 10,249 Consideration to be paid for acquisition of Yitian Xindong (Note 4) 71,100 — — Deposits from original investor of Yitian Xindong (Note 4) 14,200 16,700 2,399 Deposits from individual property buyers — 83,131 11,941 Forward contract in relation to future disposal of investments in Particle (Note 9) — 15,988 2,297 Others 449 8,841 1,270 Total 227,328 293,441 42,150 |
Cost of Revenues (Tables)
Cost of Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cost Of Revenue [Abstract] | |
Schedule of cost of revenues | The cost of revenues is as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenue sharing fees 72,613 47,539 59,672 8,571 Content and operational costs 466,379 491,868 648,195 93,108 Bandwidth costs 55,050 57,141 60,435 8,681 Sales taxes and related surcharges (Note 2(t)) 133,155 — — — Total 727,197 596,548 768,302 110,360 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of provisions for income tax expense | The provisions for income tax expense are summarized as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Current tax expense 20,936 19,819 23,218 3,336 Deferred tax (benefit)/expense (6,153 ) 286 (2,977 ) (428 ) Income tax expense 14,783 20,105 20,241 2,908 |
Components of income before tax and income tax expense for PRC and non-PRC operations | The components of income before tax and income tax expense for PRC and non-PRC operations are as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Income/(loss) arising from PRC operations 104,208 (43,009 ) (214,743 ) (30,846 ) (Loss)/income arising from non-PRC operations (55,001 ) (2,498 ) 958,986 137,750 Income/(loss) before tax 49,207 (45,507 ) 744,243 106,904 Income tax expense relating to PRC operations 14,739 20,129 20,243 2,908 Income tax expense/(benefit) relating to non-PRC operations 44 (24 ) (2 ) (0.3 ) Income tax expense 14,783 20,105 20,241 2,908 Effective tax rate for PRC operations 14.1 % (46.8 )% (9.4 )% (9.4 )% |
Reconciliation of the differences between PRC statutory income tax rate and the Group's effective income tax rate for PRC operations | Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for PRC operations for the years ended December 31, 2017, 2018 and 2019 is as follows: For the Years Ended December 31, 2017 2018 2019 % % % Statutory income tax rate 25.0 25.0 25.0 Permanent differences* (10.1 ) 46.2 18.0 Change in valuation allowance 2.9 (77.2 ) (33.0 ) Effect of preferential tax treatment (6.6 ) (37.5 ) (18.7 ) Uncertain tax positions 2.9 (3.3 ) (0.7 ) Effective income tax rate 14.1 (46.8 ) (9.4 ) * Permanent differences mainly included the tax-deductible expenses of the research and development expenses so incurred in a year in determining their tax assessable profits for that year for enterprises engaging in research and development activities, which were of 150% before 2018 and of 175% beginning from January 1, 2018, according to policies promulgated by the State Tax Bureau of the PRC. |
Combined effects of the income tax exemption and other preferential tax treatment | The combined effects of the income tax exemption and other preferential tax treatment available to the Group are as follows (in thousands, except per share data): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Effect of preferential tax treatment 6,836 (16,128 ) (40,054 ) (5,753 ) Basic net income/(loss) per share effect 0.01 (0.03 ) (0.07 ) (0.01 ) |
Tax effects of temporary differences that give rise to deferred tax assets and liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and liabilities balances as of December 31, 2018 and 2019 are as follows (in thousands): As of December 31, 2018 2019 2019 RMB RMB US$ Deferred tax assets: Provision of allowance for doubtful accounts 21,431 31,240 4,487 Accrued payroll and expenses and others 25,576 32,849 4,720 Net operating loss carryforward 69,150 136,503 19,607 Less: valuation allowance (55,997 ) (126,904 ) (18,229 ) Total deferred tax assets, net 60,160 73,688 10,585 17. Income Taxes (Continued) As of December 31, 2018 2019 2019 RMB RMB US$ Deferred tax liabilities: Unrealized holding gain of available-for-sale debt investments* 132,272 190,830 27,412 Amortizable intangible assets from acquisition of a subsidiary 7,376 5,668 814 Others 1,312 1,312 188 Total deferred tax liabilities 140,960 197,810 28,414 *The Company recognized a deferred tax liability of RMB132.3 million and RMB190.8 million (US$27.4 million) for the unrealized holding gain of available-for-sale debt investments in Particle, as of December 31, 2018 and 2019, respectively, which was recorded net against the pre-tax changes in other comprehensive income. |
Movement of valuation allowance for deferred tax assets | The following table sets forth the movement of the valuation allowance for deferred tax assets (in thousands): 2017 2018 2019 2019 RMB RMB RMB US$ Balance as of January 1, 11,402 14,208 55,997 8,043 Additions 6,164 37,584 70,709 10,158 Increase from an acquired subsidiary — 8,576 997 143 Reversals (3,358 ) (4,371 ) (799 ) (115 ) Balance as of December 31, 14,208 55,997 126,904 18,229 |
Reconciliation of liabilities associated with uncertain tax positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows (in thousands): 2017 2018 2019 2019 RMB RMB RMB US$ Balance as of January 1, 21,723 24,714 26,131 3,753 Increase related to current year tax positions 2,991 1,417 1,481 213 Balance as of December 31, 24,714 26,131 27,612 3,966 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based compensation recognized in costs and expenses | Share-based compensation recognized in costs and expenses for the years ended December 31, 2017, 2018 and 2019 are as follows (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Cost of revenues 5,017 3,750 6,830 981 Sales and marketing expenses 1,877 2,360 1,643 236 General and administrative expenses 10,796 5,072 9,025 1,296 Technology and product development expenses 3,162 2,807 2,723 392 Total 20,852 13,989 20,221 2,905 |
Summary of share option activities | A summary of the Company’s share option activities for the years ended December 31, 2017, 2018 and 2019 is presented below: Weighted Weighted Average Number of Average Remaining Aggregate Options Exercise Price Contractual Life Intrinsic Value US$ Years US$ in Million Outstanding as of January 1, 2017 44,445,135 0.43 7.1 1.8 Granted 7,255,000 0.42 Forfeited and expired (7,319,500 ) 0.50 Exercised (5,091,696 ) 0.37 2.1 Outstanding as of December 31, 2017 39,288,939 0.42 6.7 15.3 Granted 3,719,500 0.56 Forfeited and expired (3,933,599 ) 0.47 Exercised (4,823,106 ) 0.12 2.3 Outstanding as of December 31, 2018 34,251,734 0.47 6.4 — Granted 15,794,018 0.48 Forfeited and expired (7,128,379 ) 0.49 Exercised (174,373 ) 0.43 0.02 Outstanding as of December 31, 2019 42,743,000 0.47 6.4 — Exercisable as of December 31, 2019 25,806,736 0.47 4.5 — Vested and expected to vest as of December 31, 2019 33,809,645 0.47 5.6 — |
Share options valuation assumption | The assumptions used in determining the fair value of options granted during the years ended December 31, 2017, 2018 and 2019 are as follows: For the Years Ended December 31, 2017 2018 2019 Expected volatility rate 48.84%-57.06% 56.76%-57.10% 55.92%-77.98% Expected dividend yield — — — Expected term (years) 3.13-6.16 2.50-6.16 1.00-6.16 Risk-free interest rate (per annum) 0.90%-1.92% 0.91%-2.09% 2.33%-3.12% |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized information by segments | The following table presents summarized information by segments (in thousands): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Revenues Net advertising services 1,353,480 1,198,271 1,263,485 181,488 Paid services 221,612 179,108 267,577 38,435 Total revenues 1,575,092 1,377,379 1,531,062 219,923 Cost of revenues Net advertising services (602,945 ) (517,533 ) (638,160 ) (91,666 ) Paid services (124,252 ) (79,015 ) (130,142 ) (18,694 ) Total cost of revenues (727,197 ) (596,548 ) (768,302 ) (110,360 ) Gross profit Net advertising services 750,535 680,738 625,325 89,822 Paid services 97,360 100,093 137,435 19,741 Total gross profit 847,895 780,831 762,760 109,563 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value on recurring basis by level within the fair value hierarchy | The following table sets forth the financial instruments, measured at fair value on a recurring basis, by level within the fair value hierarchy (in thousands): Fair Value Measurements at Reporting Date Using Carrying Value on Balance Sheets Quote Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) RMB RMB RMB RMB As of December 31, 2018: Assets: Term deposits and short term investments 912,594 93,398 819,196 — Restricted cash 269,648 269,648 — — Available-for-sale debt investments 1,961,474 — — 1,961,474 Financial assets — contingent returnable consideration 18,211 — — 18,211 As of December 31, 2019: Assets: Term deposits and short term investments 1,271,889 488,488 783,401 — Restricted cash 82,934 82,934 — — Available-for-sale debt investments 2,014,537 — — 2,014,537 Financial assets — contingent returnable consideration 98,473 — — 98,473 Liability: Forward contract in relation to future disposal of investments in Particle 15,988 — — 15,988 |
Reconciliation of fair value measurements of available-for-sale debt investments | The following table sets forth the reconciliation of the fair value measurements of available-for-sale debt investments from January 1, 2017 to December 31, 2019 (in thousands): Fair Value Measurements of Available-for-sale Debt Investments RMB Beginning balance as of January 1, 2017 939,432 Change in fair value 321,538 Currency translation adjustment (64,640 ) Ending balance as of December 31, 2017 1,196,330 Change in fair value 698,592 Currency translation adjustment 64,552 Additional investments 2,000 Ending balance as of December 31, 2018 1,961,474 Change in fair value 1,385,379 Disposal of part available-for-sale debt investments (1,390,031 ) Currency translation adjustment 57,715 Ending balance as of December 31, 2019 2,014,537 |
Key inputs used in valuation of available-for-sale investments | The key inputs used in valuation of available-for-sale debt investments as of December 31, 2017, 2018 and 2019 were as follow: As of December 31, 2017 2018 2019 Under the Status Quo Under the Trade Sale Scenario* Scenario** Discount rate 23% 22.5% 17% N/A Lack of marketability discount (“DLOM”) 25% 20% 15% 5% Volatility 45.3% 44.5% 44.8% 45.7% Revenue growth rate 5.0%-93.8% 3.7%-75.8% 3.7%-75.8% N/A Terminal growth rate 3% 3% 3% N/A Control premium N/A N/A 30% N/A Probability of each scenario N/A 60% 40% N/A *Under the status quo scenario, the Company would not close the transaction contemplated under the LOI, and would keep holding the investments of convertible redeemable preferred shares in Particle and maintain the status quo. **Under the trade sale scenario, the Company would close the transaction contemplated under the LOI, and the Company would go through trade sales on the investments of convertible redeemable preferred shares in Particle. |
Reconciliation of the fair value measurements of financial assets - contingent returnable consideration | The following table sets forth the reconciliation of the fair value measurements of financial assets — contingent returnable consideration from January 1, 2018 to December 31, 2019 (in thousands): Fair Value Measurements of Financial Assets — Contingent Returnable Consideration RMB Beginning balance as of January 1, 2018 — Acquisition of Yitian Xindong 18,211 Ending balance as of December 31, 2018 18,211 Acquisition of noncontrolling interests in Yitian Xindong 18,211 Change in fair value 62,051 Ending balance as of December 31, 2019 98,473 |
Net Income_ (Loss) per Share (T
Net Income/ (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income/ (loss) per share | The following table sets forth the computation of basic and diluted net income/(loss) per share for the years indicated (amounts in thousands, except for number of shares (or ADSs) and per share (or ADS) data): For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Net income/(loss) per Class A and Class B ordinary share - basic: Numerator: Net income/(loss) attributable to Phoenix New Media Limited 37,472 (63,222 ) 727,829 104,546 Denominator: Weighted average number of Class A and Class B ordinary shares outstanding 573,096,266 580,516,101 582,275,800 582,275,800 Weighted average number of contingently issuable shares 1,690,621 568,352 — — Denominator used in computing net income/(loss) per share — basic 574,786,887 581,084,453 582,275,800 582,275,800 Net income/(loss) per Class A and Class B ordinary share — basic 0.07 (0.11 ) 1.25 0.18 Net income/(loss) per Class A and Class B ordinary share - diluted: Numerator: Net income/(loss) attributable to Phoenix New Media Limited 37,472 (63,222 ) 727,829 104,546 Denominator: Denominator used in computing net income/(loss) per share — basic 574,786,887 581,084,453 582,275,800 582,275,800 Share-based awards 15,647,020 — — — Denominator used in computing net income/(loss) per share — diluted 590,433,907 581,084,453 582,275,800 582,275,800 Net income/(loss) per Class A and Class B ordinary share — diluted 0.06 (0.11 ) 1.25 0.18 Net income/(loss) per ADS (1 ADS represents 8 Class A ordinary shares): Denominator used in computing net income/(loss) per ADS — basic 71,848,361 72,635,557 72,784,475 72,784,475 Denominator used in computing net income/(loss) per ADS — diluted 73,804,238 72,635,557 72,784,475 72,784,475 Net income/(loss) per ADS — basic 0.52 (0.87 ) 10.00 1.44 Net income/(loss) per ADS — diluted 0.51 (0.87 ) 10.00 1.44 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future minimum commitments under non-cancelable agreements | As of December 31, 2019, future minimum commitments under non-cancelable agreements were as follows (in thousands): Property Management Costs Bandwidth Purchases Cooperation with Phoenix TV Group Content Purchases Property and Equipment, and Intangible Assets Others Total RMB RMB RMB RMB RMB RMB RMB 2020 8,608 5,268 3,780 18,893 677 2,951 40,177 2021 6,251 307 2,000 1,003 487 62 10,110 2022 2,838 52 — 634 — 60 3,584 2023 — — — 542 — — 542 2024 and thereafter — — — 2,328 — 10 2,338 Total 17,697 5,627 5,780 23,400 1,164 3,083 56,751 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction | |
Major related parties and their relationships with the Group | The table below sets forth the major related parties and their relationships with the Group: Related Parties Relationships with the Group Entities within the non US listed part of the Phoenix TV Group Under common control by Phoenix TV China Mobile (“CMCC”) A shareholder of Phoenix TV Fengxin Technology (Haikou) Group Co., Ltd (“Lilita”)* Other equity investee, related party of Phoenix TV Group Particle Inc. (“Particle”) Available-for-sale debt investee, with common directors of the Company Beijing Fenghuang Tianbo Network Technology Co., Ltd. (“Tianbo”) Former equity method investee, and current subsidiary of VIEs since April 1, 2019 Phoenix FM Limited (“Phoenix FM”) Equity method investee Shenzhenshi Fenghuang Jingcai Network Technology Co., Ltd. (“Fenghuang Jingcai”) Equity method investee Yitong Technology (Hangzhou) Limited (“Yitong Technology”) Other equity investee Lifeix Inc. Other equity investee Shenzhen Kuailai Technology Co., Ltd. (“Kuailai”) Other equity investee Henan Fengyi Feiyang Network Technology Limited (“Fengyi Technology”) Available-for-sale debt investee Mr. Gao Ximin and Mr. Qiao Haiyan Legal shareholders of Tianying Jiuzhou and employees of the Group Mr. He Yansheng and Mr. Shang Xiaowei Legal shareholder of Yifeng Lianhe and employee of the Group Mr. Wu Haipeng and Mr. He Yansheng Legal shareholders of Chenhuan and employees of the Group *In 2019, the name of “Beijing Phoenix Lilita Information Technology Co., Ltd.” was changed to “Fengxin Technology (Haikou) Group Co., Ltd.”. |
Amounts of due from and due to related parties | As of December 31, 2018 and 2019, the amounts of due from and due to related parties were as follows (in thousands): As of December 31, 2018 2019* 2019 RMB RMB US$ Amounts due from related parties: Due from CMCC (Note 3) 59,871 46,145 6,628 Due from Phoenix TV Group 10,489 10,224 1,469 Due from Particle, net 10,022 1,040 149 Due from Fengyi Technology — 1,900 273 Due from other investees, net 10,846 414 60 Total 91,228 59,723 8,579 Amounts due to related parties: Due to CMCC 605 3,668 527 Due to Phoenix TV Group 14,396 24,637 3,539 Due to Yitong Technology (Note 10) 6,500 — — Due to Fengyi Technology — 4,996 718 Due to Others 3,717 922 132 Total 25,218 34,223 4,916 * As Tianbo has been consolidated from April 1, 2019, the amounts of due from and due to related parties as of December 31, 2019 did not include those due from and due to Tianbo. |
Non US listed part of the Phoenix TV Group | |
Related Party Transaction | |
Schedule of related party transactions | In addition to those disclosed elsewhere in the financial statements, the Group had the following significant related party transactions during the years ended December 31, 2017, 2018 and 2019 (in thousands): Transactions with the Non US Listed Part of Phoenix TV Group: For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Content provided by Phoenix TV Group (12,090 ) (12,398 ) (11,302 ) (1,623 ) Advertising and promotion expenses charged by Phoenix TV Group (23 ) (4,258 ) (4,157 ) (597 ) Corporate administrative expenses charged by Phoenix TV Group (2,676 ) (2,166 ) (2,057 ) (295 ) Trademark license fees charged by Phoenix TV Group (3,569 ) (5,752 ) (4,988 ) (716 ) Project cost charged by Phoenix TV Group (1,217 ) (1,763 ) (1,148 ) (165 ) Revenues earned from Phoenix TV Group 9,454 14,354 15,705 2,256 |
CMCC | |
Related Party Transaction | |
Schedule of related party transactions | Transactions with CMCC: For the Years Ended December 31, 2017 2018 2019 2019 RMB RMB RMB US$ Advertising revenues earned from CMCC 33,491 27,532 23,256 3,341 Paid services revenues earned from and through CMCC 138,712 86,352 71,248 10,234 Revenue sharing fees and bandwidth costs charged by CMCC (43,604 ) (15,929 ) (14,216 ) (2,042 ) |
Investees | |
Related Party Transaction | |
Schedule of related party transactions | Transactions with Investees: For the Years Ended December 31, 2017 2018 2019* 2019 RMB RMB RMB US$ Revenues earned through Phoenix FM 855 160 10 1 Advertising revenues earned from Tianbo 13,869 193 16 2 Advances provided to Tianbo 29 10,721 247 35 Revenues earned from Lilita 10,161 21 305 44 Loans provided to Particle and related interest income including the effect of foreign exchange 87,514 — — — Loans repaid by Particle (48,747 ) (84,083 ) — — Related interest income including the effect of foreign exchange arising from convertible loans to Particle (1,799 ) 8,993 — — Corporate administrative expenses charged by Particle (725 ) (82 ) — — Sales of assets to Particle at carrying value 4,740 (413 ) — — Other income earned from Particle — — 1,990 286 Advertising revenues earned from Fengyi Technology — — 12,612 1,812 Revenue sharing fees charged by investees (111 ) (77 ) (62 ) (9 ) * As Tianbo has been consolidated starting from April 1, 2019, related party transactions with Tianbo in 2019 only included those incurred from January 1, 2019 to March 31, 2019. |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | Dec. 31, 2019subsidiaryitem |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of Subsidiaries | subsidiary | 12 |
Number of VIE's | 4 |
Number of subsidiaries of VIE's | 25 |
Organization and Principal Ac_4
Organization and Principal Activities - Major subsidiaries, VIEs and subsidiaries of VIEs (Details) | 12 Months Ended | |
Dec. 31, 2019 | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | E9 | |
Direct subsidiaries | Phoenix Satellite Television Information Limited | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | D8 | |
Date of Incorporation | Sep. 1, 1999 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Investment holding | |
Direct subsidiaries | Phoenix New Media (Hong Kong) Company Limited | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | K3 | |
Date of Incorporation | Feb. 24, 2011 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Advertising | |
Direct subsidiaries | Phoenix New Media (Hong Kong) Information Technology Company Limited | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | K3 | |
Date of Incorporation | Apr. 22, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Investment holding | |
Direct subsidiaries | Fread Limited* | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | E9 | [1] |
Date of Incorporation | May 20, 2014 | [1] |
Percentage of Direct or Indirect Economic Ownership | 100.00% | [1] |
Principal Activity | Investment holding | [1] |
Indirect subsidiaries | Fenghuang On-line | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Dec. 20, 2005 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Technical consulting | |
Indirect subsidiaries | Fenghuang Yutian | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Jun. 15, 2012 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Software development | |
Indirect subsidiaries | Fenghuang Feiyang | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Oct. 25, 2013 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Advertising | |
Indirect subsidiaries | I Game (Hong Kong) Company Limited | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | K3 | |
Date of Incorporation | Jun. 10, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Game | |
Indirect subsidiaries | Fenghuang Borui | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Oct. 13, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Software development | |
Indirect subsidiaries | Qieyiyou | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Nov. 28, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Game | |
Indirect subsidiaries | Fengying Hongda | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Mar. 13, 2017 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Advertising | |
Consolidated VIEs | Tianying Jiuzhou | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Apr. 18, 2000 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Advertising and paid services | |
Consolidated VIEs | Yifeng Lianhe | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Jun. 16, 2006 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Digital entertainment | |
Consolidated VIEs | Chenhuan | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Jun. 10, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Game | |
Subsidiaries of VIEs | Tianying Chuangzhi | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Feb. 8, 2010 | |
Percentage of Direct or Indirect Economic Ownership | 100.00% | |
Principal Activity | Advertising | |
Subsidiaries of VIEs | Yitian Xindong | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | Sep. 5, 2008 | |
Percentage of Direct or Indirect Economic Ownership | 51.00% | |
Principal Activity | Digital entertainment | |
Subsidiaries of VIEs | Fengyu Network ** | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | [2] |
Date of Incorporation | Jun. 1, 2012 | [2] |
Percentage of Direct or Indirect Economic Ownership | 100.00% | [2] |
Principal Activity | Digital entertainment | [2] |
Subsidiaries of VIEs | Tianbo | ||
Subsidiaries, VIEs and Subsidiaries of VIEs | ||
Place of Incorporation | F4 | |
Date of Incorporation | May 31, 2013 | |
Percentage of Direct or Indirect Economic Ownership | 50.00% | |
Principal Activity | Advertising | |
[1] | In January 2018, the name of “I Game Limited” was changed to “Fread Limited”. | |
[2] | In April 2017, the name of “Beijing Fenghuang Interactive Entertainment Network Technology Co., Ltd.” was changed to “Beijing Fengyu Network Technology Co., Ltd.”. |
Organization and Principal Ac_5
Organization and Principal Activities - Loan Agreements (Details) | Dec. 31, 2019 | Dec. 31, 2019 |
Contractual Agreements Between Primary Beneficiaries And Variable Interest Entities [Abstract] | ||
Term of each loan agreements | 10 years | |
Extended term of loan upon expiration of original term | 10 years |
Organization and Principal Ac_6
Organization and Principal Activities - Exclusive Technical Licensing and Service Agreements (Details) ¥ in Millions, $ in Millions | 1 Months Ended | ||||
Jan. 31, 2015CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | |
Consolidated VIEs | |||||
Subsidiaries, VIEs and Subsidiaries of VIEs | |||||
Registered capital and PRC statutory reserves of the consolidated VIEs used to solely settle obligations of the VIEs and subsidiaries of the VIEs | ¥ 32.8 | $ 4.7 | |||
Meowpaw | |||||
Subsidiaries, VIEs and Subsidiaries of VIEs | |||||
Share capital of VIE | ¥ 1 | ||||
Percentage of shares held by the group | 75.00% | ||||
Percentage of shares held by the noncontrolling shareholder | 25.00% | ||||
Long-term financial and other support provided to VIE | ¥ 79 | $ 11.5 | ¥ 79 | $ 11.5 | |
Threshold of accumulated retained earnings of VIE to pay dividend | ¥ 35 |
Organization and Principal Ac_7
Organization and Principal Activities - Financial information of consolidated VIEs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |||
Variable Interest Entity [Line Items] | |||||||
Current assets | ¥ 2,556,702 | ¥ 2,020,570 | $ 367,247 | ||||
Non-current assets | 2,769,115 | 2,610,149 | 397,759 | ||||
Total assets | 5,325,817 | 4,630,719 | 765,006 | ||||
Accounts payable | 259,928 | 264,753 | 37,336 | ||||
Amounts due to related parties | 34,223 | [1] | 25,218 | 4,916 | |||
Advances from customers | 55,900 | 54,601 | 8,030 | ||||
Taxes payable | 291,511 | 101,386 | 41,873 | ||||
Salary and welfare payable | 174,902 | 132,316 | 25,123 | ||||
Accrued expenses and other current liabilities | 293,441 | 227,328 | 42,150 | ||||
Total current liabilities | 1,505,443 | 1,073,267 | 216,243 | ||||
Non-current liabilities | 275,359 | 167,091 | 39,553 | ||||
Total liabilities | 1,780,802 | 1,240,358 | 255,796 | ||||
Revenues | [2] | 1,531,062 | $ 219,923 | 1,377,379 | ¥ 1,575,092 | ||
Net loss | 724,002 | 103,996 | (65,612) | 34,424 | |||
Net cash (used in)/provided by operating activities | (330,305) | (47,445) | (76,824) | 172,980 | |||
Net cash provided by/(used in) investing activities | 1,460,394 | 209,773 | (114,712) | (6,390) | |||
Net cash (used in)/provided by financing activities | (1,114,620) | (160,105) | (75,831) | (16,234) | |||
Consolidated VIEs | |||||||
Variable Interest Entity [Line Items] | |||||||
Current assets | 1,223,454 | 979,025 | 175,738 | ||||
Non-current assets | 588,327 | 530,118 | 84,508 | ||||
Total assets | 1,811,781 | 1,509,143 | 260,246 | ||||
Accounts payable | 132,690 | 135,407 | 19,060 | ||||
Amounts due to related parties | 24,194 | 11,531 | 3,475 | ||||
Amounts due to inter-company entities | 1,030,231 | 631,392 | 147,983 | ||||
Advances from customers | 56,212 | 31,686 | 8,074 | ||||
Taxes payable | 82,475 | 48,697 | 11,847 | ||||
Salary and welfare payable | 82,095 | 40,949 | 11,792 | ||||
Accrued expenses and other current liabilities | 234,004 | 189,228 | 33,613 | ||||
Total current liabilities | 1,641,901 | 1,088,890 | 235,844 | ||||
Non-current liabilities | 52,087 | 28,796 | 7,482 | ||||
Total liabilities | 1,693,988 | 1,117,686 | $ 243,326 | ||||
Revenues | 889,084 | 127,709 | 591,495 | 769,943 | |||
Net loss | (174,661) | (25,089) | (112,146) | (7,760) | |||
Net cash (used in)/provided by operating activities | (227,916) | (32,738) | 100,256 | (3,950) | |||
Net cash provided by/(used in) investing activities | 129,697 | 18,630 | ¥ (164,190) | 65,600 | |||
Net cash (used in)/provided by financing activities | ¥ 224,299 | $ 32,219 | ¥ (2,000) | ||||
[1] | As Tianbo has been consolidated from April 1, 2019, the amounts of due from and due to related parties as of December 31, 2019 did not include those due from and due to Tianbo. | ||||||
[2] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Organization and Principal Ac_8
Organization and Principal Activities - Others (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Minimum period to maintain structure and corporate governance | 5 years | 5 years | ||
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Net fee paid or payable to other subsidiaries of the Group by the consolidated VIEs after netting off inter-company transactions | ¥ 3.8 | $ 0.6 | ¥ 31.7 | ¥ 13.7 |
Principal Accounting Policies -
Principal Accounting Policies - Basis of presentation, principles of consolidation, and cost allocations (Details) ¥ in Millions | Jan. 15, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
2020 Program Resource License and Cooperation Agreement | Subsequent Event | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Annual fixed license fees payable | ¥ | ¥ 2 | |||
Percentage of annual license fees payable in excess of revenue generated | 50.00% | |||
Agreement term | 2 years | |||
Annual license fees payable description | The annual license fees payable to Phoenix TV Group under the 2020 Program Resource License and Cooperation Agreement are RMB2.0 million plus 50% of the revenue generated from the use of the licensed program resource in excess of RMB2.0 million. | |||
Phoenix TV Group | Content license fee | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Fixed amount of payment to cover other services provided by Phoenix TV Group, group will pay for the first year | ¥ | ¥ 10 | |||
Percentage of annual growth on fixed amount of payment, group will pay | 15.00% | |||
Phoenix TV Group | Trademark license fee | Old Agreements | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Annual license fee payable | $ | $ 10,000 | |||
Phoenix TV Group | Trademark license fee | New Agreements | Maximum | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Percentage of revenue from which the annual license fee payable is derived | 2.00% | |||
Fixed fee for each company | $ | $ 100,000 |
Principal Accounting Policies_3
Principal Accounting Policies - Convenience translation (Details) | Dec. 31, 2019 |
Convenience translation | |
Convenience translation, noon buying rate of US$ using RMB | 6.9618 |
Principal Accounting Policies_4
Principal Accounting Policies - Property and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computers | |
Property and Equipment | |
Estimated Useful Lives | 3 years |
Equipment, furniture and motor vehicles | |
Property and Equipment | |
Estimated Useful Lives | 5 years |
Principal Accounting Policies_5
Principal Accounting Policies - Intangible assets, net (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer software | |
Intangible assets | |
Estimated useful lives | 5 years |
Trademark and domain names | |
Intangible assets | |
Estimated useful lives | 10 years |
Licensed copyrights of reading content | |
Intangible assets | |
Estimated useful lives | 5 years |
Audio content | |
Intangible assets | |
Estimated useful lives | 5 years |
User base | |
Intangible assets | |
Estimated useful lives | 9 months 18 days |
Principal Accounting Policies_6
Principal Accounting Policies - Summary of ASC606, Revenue from Contracts with Customers (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Accounting Policies [Abstract] | |||
Sales taxes and related surcharges recorded as a reduction of revenues | ¥ 125.5 | $ 18 | ¥ 123 |
Revenues from advertising-for-advertising barter transactions | 7.4 | 1.1 | 4.7 |
Expenses from advertising-for-advertising barter transactions | ¥ 7.4 | $ 1.1 | ¥ 4.8 |
Principal Accounting Policies_7
Principal Accounting Policies - Revenues disaggregated by products and services (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Revenues disaggregated by products and services | |||||
Revenues | [1] | ¥ 1,531,062 | $ 219,923 | ¥ 1,377,379 | ¥ 1,575,092 |
Net advertising services | |||||
Revenues disaggregated by products and services | |||||
Revenues | 1,263,485 | 181,488 | 1,198,271 | 1,353,480 | |
Paid services | |||||
Revenues disaggregated by products and services | |||||
Revenues | 267,577 | 38,435 | 179,108 | 221,612 | |
Revenues from paid contents | |||||
Revenues disaggregated by products and services | |||||
Revenues | 205,360 | 29,498 | 95,044 | 77,675 | |
Revenues from games | |||||
Revenues disaggregated by products and services | |||||
Revenues | 14,169 | 2,035 | 14,727 | 27,463 | |
Revenues from MVAS | |||||
Revenues disaggregated by products and services | |||||
Revenues | 18,499 | 2,657 | 55,037 | 108,567 | |
Revenues from others | |||||
Revenues disaggregated by products and services | |||||
Revenues | ¥ 29,549 | $ 4,245 | ¥ 14,300 | ¥ 7,907 | |
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Principal Accounting Policies_8
Principal Accounting Policies - Contract Balances and Practical Expedients (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Accounting Policies [Abstract] | |||
Revenue recognized included in beginning contract liability | ¥ 44.7 | $ 6.4 | ¥ 47.7 |
Election of revenue recognition practical expedient, nondisclosure of transaction price allocation to remaining performance obligation | true | true | |
Election of revenue recognition practical expedient, financing component | true | true | |
Election of revenue recognition practical expedient, incremental cost of obtaining contract | true | true |
Principal Accounting Policies_9
Principal Accounting Policies - Revenue recognition (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Accounting Policies [Abstract] | ||||
Agency service fees to third-party advertising agencies | ¥ 180.7 | $ 26 | ¥ 215.2 | ¥ 223.3 |
Revenues recognized from noncash transactions | 8.7 | 1.3 | 17.8 | ¥ 4.4 |
Revenue from advertising-for-advertising barter transactions | ¥ 7.4 | $ 1.1 | ¥ 4.7 |
Principal Accounting Policie_10
Principal Accounting Policies - Sales taxes and surcharges (Details) ¥ in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Sales taxes and related surcharges and other surcharges | ||||||
Applicable rate of VAT (in percent) | 6.00% | 6.00% | 6.00% | 6.00% | ||
Applicable tax rate of cultural development fee for net advertising revenues | 1.50% | 3.00% | ||||
Urban maintenance and construction tax rate (in percent) | 7.00% | 7.00% | ||||
Education surcharge rate(in percent) | 3.00% | 3.00% | ||||
Sales taxes and related surcharges and other surcharges | ¥ 128.3 | $ 18.4 | ¥ 127.6 | ¥ 133.2 | ||
Maximum | ||||||
Sales taxes and related surcharges and other surcharges | ||||||
Urban maintenance and construction tax rate (in percent) | 5.00% | 5.00% | ||||
Local education surcharge rate (in percent) | 2.00% | 2.00% | ||||
Minimum | ||||||
Sales taxes and related surcharges and other surcharges | ||||||
Urban maintenance and construction tax rate (in percent) | 1.00% | 1.00% | ||||
Local education surcharge rate (in percent) | 1.00% | 1.00% |
Principal Accounting Policie_11
Principal Accounting Policies - Sales and marketing expenses (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Sales and marketing expenses | ||||
Total advertising and promotion expenses including traffic acquisition expenses | ¥ 385.4 | $ 55.4 | ¥ 376.7 | ¥ 329.7 |
Total advertising and promotion expenses from advertising-for-advertising barter transactions | ¥ 7.3 | $ 1 | ¥ 4.3 |
Principal Accounting Policie_12
Principal Accounting Policies - Operating leases and Adoption of ASU (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Jan. 01, 2019CNY (¥) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Operating lease right-of-use assets, net | ¥ 85,790 | ¥ 0 | $ 12,323 | |||
Lease liability | ¥ 90,263 | $ 12,965 | ||||
Operating lease weighted average remaining lease term | 2 years 4 months 13 days | 2 years 4 months 13 days | ||||
Operating lease, weighted average discount rate | 5.60% | 5.60% | ||||
Rent expense under operating lease | ¥ 37,600 | ¥ 37,000 | ||||
Operating lease cost and expenses | ¥ 40,400 | $ 5,800 | ||||
Short term lease cost and expenses | ¥ 1,900 | $ 300 | ||||
ASU 2016-02 | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Operating lease right-of-use assets, net | ¥ 99,500 | |||||
Lease liability | ¥ 99,500 |
Principal Accounting Policie_13
Principal Accounting Policies - Summary of Future Lease Payments under Operating Leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Accounting Policies [Abstract] | |||
2020 | ¥ 44,109 | $ 6,336 | |
2021 | 35,706 | 5,129 | |
2022 | 16,052 | 2,306 | |
2023 | 291 | 42 | |
Total future lease payments | 96,158 | 13,813 | |
Less: Imputed interest | 5,895 | 848 | |
Total lease liability balance | ¥ 90,263 | $ 12,965 | |
2019 | ¥ 38,222 | ||
2020 | 38,270 | ||
2021 | 38,314 | ||
2022 | 18,980 | ||
Total future lease payments | ¥ 133,786 |
Principal Accounting Policie_14
Principal Accounting Policies - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Accounting Policies [Abstract] | ||
Cash payments for operating leases | ¥ 37,713 | $ 5,417 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 22,388 | $ 3,216 |
Principal Accounting Policie_15
Principal Accounting Policies - Share-based compensation (Details) - 12 months ended Dec. 31, 2019 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Accounting Policies [Abstract] | ||
Incremental compensation cost | ¥ 31.6 | $ 4.5 |
Principal Accounting Policie_16
Principal Accounting Policies - Employee social security and welfare benefits (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Employee social security and welfare benefits | ||||
Employee social security and welfare benefits | ¥ 113.7 | $ 16.3 | ¥ 84.3 | ¥ 79.4 |
Principal Accounting Policie_17
Principal Accounting Policies - Statutory reserves, Dividends (Details) ¥ / shares in Units, $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019¥ / shares | |
Statutory Reserves | |||||
Appropriations to statutory reserves | ¥ 1,000,000 | $ 0.1 | ¥ 6,400,000 | ¥ 3,300,000 | |
Dividends | |||||
Dividends declared | $ 100 | ¥ 0 | ¥ 0 | ||
Dividends payable, per share | $ / shares | $ 0.1714 | ||||
ADS | |||||
Dividends | |||||
Dividends payable, per share | ¥ / shares | ¥ 1.3712 | ||||
Wholly foreign-owned enterprise | |||||
Statutory Reserves | |||||
Portion of after-tax profit to be allocated to general reserve fund under PRC law (as a percent) | 10.00% | 10.00% | |||
Required general reserve/registered capital ratio to de-force compulsory net profit allocation to general reserve (as a percent) | 50.00% | 50.00% | |||
Domestically funded enterprises | |||||
Statutory Reserves | |||||
Portion of after-tax profit to be allocated to general reserve fund under PRC law (as a percent) | 10.00% | 10.00% | |||
Required general reserve/registered capital ratio to de-force compulsory net profit allocation to general reserve (as a percent) | 50.00% | 50.00% |
Certain Risks and Concentrati_2
Certain Risks and Concentration - Major Customers (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | ||
Major customers | ||||||
Revenues | [1] | ¥ 1,531,062 | $ 219,923 | ¥ 1,377,379 | ¥ 1,575,092 | |
Customer concentration risk | Revenues | CMCC | ||||||
Major customers | ||||||
Revenues | ¥ 94,500 | $ 13,600 | ¥ 113,900 | ¥ 172,200 | ||
Revenues generated (in percent) | 6.20% | 6.20% | 8.30% | 10.90% | ||
Customer concentration risk | Accounts receivable | CMCC | Amounts Due from Related Parties | ||||||
Major customers | ||||||
Due from CMCC | ¥ 46,100 | ¥ 59,900 | $ 6,600 | |||
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Certain Risks and Concentrati_3
Certain Risks and Concentration - PRC regulations (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Total revenue derived from internet information services licenses | 88.90% |
Acquisition (Details)
Acquisition (Details) $ in Thousands | Apr. 01, 2019CNY (¥) | Apr. 01, 2019USD ($) | Mar. 01, 2019CNY (¥) | Mar. 01, 2019USD ($) | Dec. 28, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Allocation of purchase price | |||||||||||||||
Total revenues | [1] | ¥ 1,531,062,000 | $ 219,923 | ¥ 1,377,379,000 | ¥ 1,575,092,000 | ||||||||||
Net income/(loss) | 724,002,000 | 103,996 | (65,612,000) | ¥ 34,424,000 | |||||||||||
Yitian Xindong | |||||||||||||||
Acquisition | |||||||||||||||
Non-controlling interest owned by other shareholders, (in percent) | 74.50% | ||||||||||||||
Telling Telecom | |||||||||||||||
Allocation of purchase price | |||||||||||||||
Deposits received | ¥ 14,200,000 | ¥ 16,700,000 | 16,700,000 | ¥ 14,200,000 | $ 2,400 | ||||||||||
Yitian Xindong | |||||||||||||||
Acquisition | |||||||||||||||
Equity interests owned by the Company | 25.50% | 25.50% | |||||||||||||
Aggregate cost of acquisition | ¥ 144,100,000 | ¥ 144,100,000 | |||||||||||||
Yitian Xindong | Bingruixin | |||||||||||||||
Acquisition | |||||||||||||||
Equity interests owned by the Company | 25.50% | 25.50% | |||||||||||||
Aggregate cost of acquisition | ¥ 144,100,000 | ¥ 144,100,000 | |||||||||||||
Percentage of voting rights agreed to transfer under voting rights entrustment by way of call option | 25.50% | ||||||||||||||
Yitian Xindong | |||||||||||||||
Acquisition | |||||||||||||||
Equity interests owned by the Company | 51.00% | 51.00% | |||||||||||||
Cash consideration paid | ¥ 71,100,000 | 73,000,000 | |||||||||||||
Allocation of purchase price | |||||||||||||||
Purchase consideration | ¥ 144,100,000 | ||||||||||||||
Decrease in noncontrolling interest | 124,200,000 | 17,800 | |||||||||||||
Voting rights owned by the company, (in percent) | 51.00% | 51.00% | |||||||||||||
Business acquisition, gain or loss recognized on remeasurement | ¥ 0 | ||||||||||||||
Total revenues | 204,000,000 | 29,300 | |||||||||||||
Net income/(loss) | 2,500,000 | $ 400 | |||||||||||||
Right to receive contingent returnable consideration | 170,600,000 | 170,600,000 | 24,500 | ||||||||||||
Contingent returnable consideration to be received | 170,600,000 | ¥ 170,600,000 | |||||||||||||
Probability of successfully collecting the contingent returnable consideration | 60.00% | 60.00% | |||||||||||||
Fair value of right to receive contingent returnable consideration | ¥ 18,200,000 | 98,500,000 | ¥ 98,500,000 | ¥ 18,200,000 | 14,100 | ||||||||||
Change in fair value of right to receive contingent returnable consideration | 62,100,000 | ¥ 62,100,000 | $ 8,900 | ||||||||||||
Yitian Xindong | Bingruixin | |||||||||||||||
Allocation of purchase price | |||||||||||||||
Percentage of voting rights agreed to transfer under voting rights entrustment by way of call option exercised | 25.50% | 25.50% | |||||||||||||
Purchase consideration | ¥ 144,100,000 | $ 20,700 | |||||||||||||
Tianbo | |||||||||||||||
Acquisition | |||||||||||||||
Equity interests owned by the Company | 50.00% | 50.00% | |||||||||||||
Allocation of purchase price | |||||||||||||||
Non-cash consideration | ¥ 5,900,000 | $ 800 | |||||||||||||
Fair value of previously held equity interest in Tianbo | 17,012,000 | 2,400 | |||||||||||||
Business acquisition, gain or loss recognized on remeasurement | ¥ 500,000 | $ 70 | |||||||||||||
Total revenues | 248,500,000 | $ 35,700 | |||||||||||||
Net income/(loss) | ¥ 19,600,000 | $ 2,800 | |||||||||||||
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Acquisition - Schedule of alloc
Acquisition - Schedule of allocation of purchase price (Details) ¥ in Thousands, $ in Thousands | Apr. 01, 2019CNY (¥) | Apr. 01, 2019USD ($) | Dec. 28, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Allocation of purchase price | ||||||
Goodwill | ¥ 361,074 | $ 51,865 | ¥ 338,288 | |||
Yitian Xindong | ||||||
Allocation of purchase price | ||||||
Purchase consideration | ¥ 144,100 | |||||
Net assets acquired, excluding intangible assets and the related deferred tax | 21,803 | |||||
Deferred tax assets | 8,576 | |||||
Less: valuation allowance | (8,576) | |||||
Goodwill | 338,288 | 338,288 | ¥ 338,288 | |||
Financial assets - contingent returnable consideration | 18,211 | |||||
Deferred tax liabilities | (7,390) | |||||
Noncontrolling interests | (319,412) | |||||
Total | 144,100 | |||||
Yitian Xindong | User base | ||||||
Allocation of purchase price | ||||||
Amortizable intangible assets | ¥ 5,100 | |||||
Amortization period | 9 months 18 days | |||||
Yitian Xindong | Trademark and domain names | ||||||
Allocation of purchase price | ||||||
Amortizable intangible assets | ¥ 38,300 | |||||
Amortization period | 10 years | |||||
Yitian Xindong | Licensed copyrights of reading content | ||||||
Allocation of purchase price | ||||||
Amortizable intangible assets | ¥ 49,200 | |||||
Yitian Xindong | Licensed copyrights of reading content | Maximum | ||||||
Allocation of purchase price | ||||||
Amortization period | 3 years | |||||
Yitian Xindong | Licensed copyrights of reading content | Minimum | ||||||
Allocation of purchase price | ||||||
Amortization period | 2 years 4 months 2 days | |||||
Tianbo | ||||||
Allocation of purchase price | ||||||
Non-cash consideration | ¥ 5,900 | $ 800 | ||||
Fair value of previously held equity interests in Tianbo | 17,012 | $ 2,400 | ||||
Total consideration | 22,912 | |||||
Net assets acquired | 17,138 | |||||
Goodwill | 22,786 | ¥ 22,786 | ||||
Noncontrolling interests | (17,012) | |||||
Total | ¥ 22,912 |
Acquisition - Schedule of all_2
Acquisition - Schedule of allocation of purchase price (Parenthetical) (Details) ¥ in Millions, $ in Millions | Apr. 01, 2019CNY (¥) | Apr. 01, 2019USD ($) | Dec. 28, 2018CNY (¥) | Dec. 28, 2018USD ($) |
Yitian Xindong | ||||
Acquisition | ||||
Cash and cash equivalents acquired | ¥ 10.9 | $ 1.6 | ||
Tianbo | ||||
Acquisition | ||||
Cash and cash equivalents acquired | ¥ 175.5 | $ 25.2 |
Acquisition - Schedule of unaud
Acquisition - Schedule of unaudited pro forma summary (Details) - Tianbo - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquisition | ||
Revenue | ¥ 1,566,245 | ¥ 1,579,211 |
Net (loss)/income attributable to Phoenix New Media Limited | ¥ 731,007 | ¥ (50,577) |
Accounts Receivable, Net - Bala
Accounts Receivable, Net - Balance of accounts receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Accounts Receivable Net [Abstract] | ||||||
Accounts receivable, gross | ¥ 757,158 | $ 108,759 | ¥ 562,797 | |||
Allowance for doubtful accounts | (118,886) | (17,077) | (78,684) | $ (11,302) | ¥ (65,454) | ¥ (91,348) |
Accounts receivable, net | ¥ 638,272 | $ 91,682 | ¥ 484,113 |
Accounts Receivable, Net - Move
Accounts Receivable, Net - Movement of the allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Movement of the allowance for doubtful accounts | ||||
Balance as of January 1, | ¥ 78,684 | $ 11,302 | ¥ 65,454 | ¥ 91,348 |
Additional provision/(reversal) charged to bad debt expenses, net | 43,932 | 6,311 | 22,473 | (9,137) |
Write-off of bad debt provision | (3,730) | (536) | (9,243) | (16,757) |
Balance as of December 31, | 118,886 | 17,077 | 78,684 | 65,454 |
Additional provision/(reversal) charged to bad debt expenses, net | ¥ 43,932 | $ 6,311 | ¥ 22,473 | (9,137) |
Collection of previously fully-reserved receivables | 25,400 | |||
New bad debt provision recognized in expenses | ¥ 16,300 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Prepaid Expense And Other Assets Current [Abstract] | |||
Prepaid rental and deposits | ¥ 12,737 | $ 1,830 | ¥ 2,799 |
Prepayments to suppliers and other business related expenses | 34,316 | 4,929 | 60,548 |
Receivables related to exercise of employee options | 4,003 | 575 | 4,101 |
Costs to fulfill contracts with customers | 1,686 | 242 | 157 |
Financial assets — contingent returnable consideration (Note 4) | 98,473 | 14,145 | 18,211 |
Long-term receivable from an unrelated party due within one year | 6,500 | 934 | |
Others | 5,153 | 739 | 3,147 |
Total | ¥ 162,868 | $ 23,394 | ¥ 88,963 |
Prepayments and Other Current_4
Prepayments and Other Current Assets - Additional information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Long term receivable unrelated party (in year) | 2 years |
The interest rate of Loan granted to the unrelated party (in percent) | 10.00% |
Prepaid content licenses | Minimum | |
Amortization period (in year) | 1 year |
Prepaid content licenses | Maximum | |
Amortization period (in year) | 3 years |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property and Equipment, Net | |||
Total gross value | ¥ 266,792 | $ 38,323 | ¥ 244,383 |
Less: accumulated depreciation | (165,142) | (23,722) | (148,752) |
Net book value | 101,650 | 14,601 | 95,631 |
Computers, equipment and furniture | |||
Property and Equipment, Net | |||
Total gross value | 218,284 | 31,355 | 199,591 |
Motor vehicles | |||
Property and Equipment, Net | |||
Total gross value | 6,100 | 876 | 5,971 |
Leasehold improvements | |||
Property and Equipment, Net | |||
Total gross value | ¥ 42,408 | $ 6,092 | ¥ 38,821 |
Property and Equipment, Net - D
Property and Equipment, Net - Depreciation expenses (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expenses | ¥ 35.6 | $ 5.1 | ¥ 29.4 | ¥ 32.2 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of intangible assets, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Intangible assets, Net | |||
Total gross value | ¥ 162,962 | $ 23,409 | ¥ 123,786 |
Less: accumulated amortization | (58,082) | (8,344) | (24,035) |
accumulated impairment | (5,600) | (804) | (2,303) |
Net book value | 99,280 | 14,261 | 97,448 |
Computer software | |||
Intangible assets, Net | |||
Total gross value | 20,653 | 2,967 | 23,233 |
License and licensed games | |||
Intangible assets, Net | |||
Total gross value | 132 | 19 | 7,899 |
User base | |||
Intangible assets, Net | |||
Total gross value | 5,100 | 733 | 5,100 |
Licensed copyrights of reading content | |||
Intangible assets, Net | |||
Total gross value | 89,084 | 12,796 | 49,200 |
Audio content | |||
Intangible assets, Net | |||
Total gross value | 9,639 | 1,385 | |
Trademark and domain names | |||
Intangible assets, Net | |||
Total gross value | ¥ 38,354 | $ 5,509 | ¥ 38,354 |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization expenses (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||
Amortization expenses | ¥ 41.8 | $ 6 | ¥ 3.1 | ¥ 3.4 |
Estimated amortization expenses | ||||
2020 | 30.1 | |||
2021 | 21.8 | |||
2022 | 17.3 | |||
2023 | 12.7 | |||
2024 | ¥ 7.7 |
Available-for-sale Debt Inves_2
Available-for-sale Debt Investments (Details) ¥ in Thousands, $ in Thousands | Aug. 09, 2019USD ($) | Jul. 23, 2019USD ($)shares | Mar. 22, 2019USD ($)shares | Oct. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($)shares |
Available-for-sale Debt Investments | ||||||||||
Fair value of available-for-sale investments | ¥ 1,961,474 | ¥ 2,014,537 | ¥ 1,961,474 | $ 289,370 | ||||||
Gain on disposal of available-for-sale debt investments | 1,001,181 | $ 143,811 | 0 | ¥ 0 | ||||||
Forward contract in relation to future disposal of investments in Particle | 15,988 | 2,297 | ||||||||
Total unrealized gains on available-for-sale investments recorded in accumulated other comprehensive income | 1,323,600 | 1,615,100 | 1,323,600 | 232,000 | ||||||
Supplemental Agreement | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Percentage of equity interests owned by the Company on an as-if converted basis | 37.63% | |||||||||
Supplemental Agreement | Proposed Buyers | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Preferred shares transferred on sale | shares | 212,358,165 | 199,866,509 | ||||||||
Total purchase price | $ 448,000 | $ 448,000 | ||||||||
Particle | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Fair value of available-for-sale investments | ¥ 1,959,500 | ¥ 2,012,500 | ¥ 1,959,500 | $ 289,100 | ||||||
Percentage of equity interests owned by the Company on an as-if converted basis | 37.63% | 20.21% | 37.63% | 20.21% | ||||||
Particle | Series B and Series C convertible redeemable preferred shares | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Gain on disposal of available-for-sale debt investments | ¥ 1,001,200 | $ 143,800 | ||||||||
Particle | Proposed Buyers | Series B and Series C convertible redeemable preferred shares | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Preferred shares transferred on sale | shares | 94,802,752 | 94,802,752 | ||||||||
Total purchase price | $ 200,000 | |||||||||
Cash deposit | $ 50,000 | |||||||||
Particle | SPA | Proposed Buyers | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Share purchase agreement date | Mar. 22, 2019 | |||||||||
Particle | Supplemental Agreement | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Forward contract in relation to future disposal of investments in Particle | ¥ 16,000 | $ 2,300 | ||||||||
Particle | Supplemental Agreement | Proposed Buyers | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Supplemental agreement date | Jul. 23, 2019 | |||||||||
Percentage of equity interests totally sold by the Company | 34.00% | |||||||||
Fengyi Technology | ||||||||||
Available-for-sale Debt Investments | ||||||||||
Fair value of available-for-sale investments | ¥ 2,000 | ¥ 2,000 | ¥ 2,000 | $ 300 | ||||||
Proportion of equity interest acquired considered as available-for-sale debt securities | 40.00% | |||||||||
Consideration paid for purchase of available-for-sale debt securities | ¥ | ¥ 2,000 |
Equity Investments - Equity met
Equity Investments - Equity method investments (Details) - CNY (¥) | 1 Months Ended | ||||
May 31, 2014 | Dec. 31, 2019 | Apr. 02, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Phoenix FM | |||||
Equity method investments | |||||
Investment amounts | ¥ 0 | ||||
Equity interests acquired by the Company (in percent) | 100.00% | ||||
Fenghuang Jingcai | |||||
Equity method investments | |||||
Equity interests acquired by the Company (in percent) | 31.54% | ||||
Investment amounts | ¥ 0 | ||||
Tianbo | |||||
Equity method investments | |||||
Equity interests acquired by the Company (in percent) | 50.00% | 50.00% | |||
Investment amounts | ¥ 20,500,000 |
Equity Investments - Condensed
Equity Investments - Condensed financial information of equity method investments (Details) - Group’s equity method investments ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | ||
Operating data: | ||||||
Revenues | ¥ 37,987 | [1] | $ 5,456 | ¥ 220,656 | ¥ 171,335 | |
Gross profit | 25,874 | [1] | 3,717 | 140,701 | 101,424 | |
Net income/(loss) | (21,583) | [1] | (3,100) | 1,747 | 2,562 | |
Net income/(loss) attributable to the equity method investees | (21,442) | [1] | (3,080) | 577 | 2,562 | |
PNM’s share of net income/(loss) | (3,968) | [1] | $ (570) | 5,352 | ¥ 6,796 | |
Balance sheet data: | ||||||
Current assets | 3,251 | [2] | 249,386 | $ 467 | ||
Non-current assets | 17 | [2] | 20,428 | 2 | ||
Current liabilities | ¥ 59,685 | [2] | ¥ 286,695 | $ 8,573 | ||
[1] | Tianbo has been a subsidiary of the Company’s VIE and no longer an equity method investee since April 1, 2019. The operating data here only included the data of Tianbo from January 1, 2019 to March 31, 2019. | |||||
[2] | Tianbo has been a subsidiary of the Company’s VIE and no longer an equity method investee since April 1, 2019. The balance sheet data here did not include the data of Tianbo as of December 31, 2019. |
Equity Investments - Other equi
Equity Investments - Other equity investments (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2019CNY (¥) | Feb. 28, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2019USD ($) | Nov. 30, 2018CNY (¥) | Aug. 31, 2017CNY (¥) | |
Lilita | |||||||||||
Other equity investments | |||||||||||
Percentage of equity interest | 4.69% | 4.69% | |||||||||
Impairment loss | ¥ 0.5 | ||||||||||
Lifeix Inc. | |||||||||||
Other equity investments | |||||||||||
Percentage of equity interests held | 0.30% | 0.30% | 0.30% | 0.30% | 0.30% | ||||||
Kuailai | |||||||||||
Other equity investments | |||||||||||
Percentage of equity interest | 8.00% | ||||||||||
Aggregate purchase consideration | ¥ 0.2 | ||||||||||
Equity method Investment amounts | ¥ 0.2 | $ 30 | |||||||||
Yitong Technology | |||||||||||
Other equity investments | |||||||||||
Percentage of equity interest | 10.00% | ||||||||||
Equity method Investment amounts | ¥ 13 | ¥ 13 | ¥ 13 | $ 1,900 | |||||||
Total consideration paid | ¥ 6.5 | $ 900 | ¥ 6.5 | ||||||||
Total consideration to be paid | ¥ 13 |
Convertible Loans Due from a _2
Convertible Loans Due from a Related Party (Details) $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($)$ / shares | |
Convertible loans due from a related party | ||||
Gain on disposal of convertible loans due from a related party | ¥ | ¥ 10,565 | |||
Particle | ||||
Convertible loans due from a related party | ||||
Principal amount of short-term unsecured loans granted | $ 14.8 | |||
Interest rate of short-term unsecured loans | 4.35% | |||
Maturity of short-term unsecured loans | 24 months | |||
Particle | Series D1 convertible redeemable preferred shares | ||||
Convertible loans due from a related party | ||||
Conversion price per share | $ / shares | $ 1.071803 | |||
Long De | ||||
Convertible loans due from a related party | ||||
Loan assignment on consideration | $ 17 | |||
Gain on disposal of convertible loans due from a related party | ¥ 10,600 | $ 1.5 |
Goodwill - Changes in carrying
Goodwill - Changes in carrying amount of goodwill (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Goodwill [Line Items] | |||
Beginning balance | ¥ 338,288 | ||
Goodwill acquired | 22,786 | ¥ 338,288 | |
Ending balance | 361,074 | $ 51,865 | 338,288 |
Yitian Xindong Business | |||
Goodwill [Line Items] | |||
Beginning balance | 338,288 | ||
Goodwill acquired | 338,288 | ||
Ending balance | 338,288 | ¥ 338,288 | |
Tianbo Business | |||
Goodwill [Line Items] | |||
Goodwill acquired | 22,786 | ||
Ending balance | ¥ 22,786 |
Goodwill - Impairment charge (D
Goodwill - Impairment charge (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment charge | ¥ 0 | ¥ 0 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Other Assets Noncurrent [Abstract] | |||
Rental deposits | ¥ 8,330 | $ 1,197 | ¥ 8,355 |
Non-current portion of prepayments to suppliers and other business related expenses | 8,698 | 1,249 | 9,099 |
Long-term receivable from an unrelated party | 6,000 | ||
Others | 2,831 | 407 | |
Total | ¥ 19,859 | $ 2,853 | ¥ 23,454 |
Long term receivable unrelated party (in year) | 2 years | ||
The interest rate of Loan granted to the unrelated party (in percent) | 10.00% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Accrued Liabilities Current [Abstract] | |||
Deposits from advertising agencies and customers | ¥ 16,029 | $ 2,302 | ¥ 13,760 |
Accrued professional fees | 7,869 | 1,130 | 7,059 |
Advertising and promotion expenses payables and accruals | 73,533 | 10,562 | 83,805 |
General operating expenses payables and accruals | 71,350 | 10,249 | 36,955 |
Consideration to be paid for acquisition of Yitian Xindong (Note 4) | 71,100 | ||
Deposits from original investor of Yitian Xindong (Note 4) | 16,700 | 2,399 | 14,200 |
Deposits from individual property buyers | 83,131 | 11,941 | |
Forward contract in relation to future disposal of investments in Particle (Note 9) | 15,988 | 2,297 | |
Others | 8,841 | 1,270 | 449 |
Total | ¥ 293,441 | $ 42,150 | ¥ 227,328 |
Short-term Bank Loans (Details)
Short-term Bank Loans (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | |
Short-term Bank Loans | ||||||
Total short-term bank loans | ¥ | ¥ 267,665 | |||||
Short-term bank loans secured by bank deposits | ¥ 82,934 | $ 11,913 | 269,648 | |||
Hang Seng Bank | ||||||
Short-term Bank Loans | ||||||
Short-term bank loans credit limit | $ | $ 47,000 | |||||
Short-term bank loans maturity | 12 months | |||||
Hang Seng Bank | LIBOR | ||||||
Short-term Bank Loans | ||||||
Short-term bank loans variable rate basis description | LIBOR | |||||
Short-term bank loans variable interest rate (in percent) | 1.20% | |||||
Short-term bank loan from Hang Seng Bank | ||||||
Short-term Bank Loans | ||||||
Short-term bank loans | $ | $ 16,000 | $ 23,000 | ||||
Short-term bank loans maturity | 12 months | |||||
Total short-term bank loans | 267,700 | $ 39,000 | ||||
Secured short-term bank loan facility | ||||||
Short-term Bank Loans | ||||||
Short-term bank loans secured by bank deposits | ¥ | ¥ 269,600 |
Cost of Revenues (Details)
Cost of Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Cost Of Revenue [Abstract] | |||||
Revenue sharing fees | ¥ 59,672 | $ 8,571 | ¥ 47,539 | ¥ 72,613 | |
Content and operational costs | 648,195 | 93,108 | 491,868 | 466,379 | |
Bandwidth costs | 60,435 | 8,681 | 57,141 | 55,050 | |
Sales taxes and related surcharges (Note 2(t)) | 133,155 | ||||
Total | [1] | ¥ 768,302 | $ 110,360 | ¥ 596,548 | ¥ 727,197 |
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Income Taxes - Summary of provi
Income Taxes - Summary of provisions for income tax expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expense | ¥ 23,218 | $ 3,336 | ¥ 19,819 | ¥ 20,936 |
Deferred income tax | (2,977) | (428) | 286 | (6,153) |
Income tax expense | ¥ 20,241 | $ 2,908 | ¥ 20,105 | ¥ 14,783 |
Income Taxes - Components of in
Income Taxes - Components of income before tax and income tax expense for PRC and non-PRC operations (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income/(loss) arising from PRC operations | ¥ (214,743) | $ (30,846,000) | ¥ (43,009) | ¥ 104,208 |
(Loss)/income arising from non-PRC operations | 958,986 | 137,750,000 | (2,498) | (55,001) |
Income/(loss) before tax | 744,243 | 106,904,000 | (45,507) | 49,207 |
Income tax expense relating to PRC operations | 20,243 | 2,908,000 | 20,129 | 14,739 |
Income tax expense/(benefit) relating to non-PRC operations | (2) | (300) | (24) | 44 |
Income tax expense | ¥ 20,241 | $ 2,908,000 | ¥ 20,105 | ¥ 14,783 |
Effective tax rate for PRC operations | (9.40%) | (9.40%) | (46.80%) | 14.10% |
Income Taxes - Cayman Islands (
Income Taxes - Cayman Islands ("Cayman"), Hong Kong, PRC, Withholding Tax on Undistributed Dividends and Withholding Tax on gain from disposal of available-for-sale debt investments in Particle (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | 36 Months Ended | |||||||
Nov. 30, 2018 | Aug. 31, 2017 | Nov. 30, 2014 | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2017 | Dec. 31, 2019USD ($) | |
Schedule of income taxes | ||||||||||
Gain on disposal of available-for-sale debt investments | ¥ 1,001,181 | $ 143,811 | ¥ 0 | ¥ 0 | ||||||
Cayman Islands (“Cayman”) | ||||||||||
Schedule of income taxes | ||||||||||
Gain on disposal of available-for-sale debt investments | ¥ 1,001,200 | $ 143,800 | ||||||||
Hong Kong | ||||||||||
Schedule of income taxes | ||||||||||
Statutory income tax rate | 16.50% | 16.50% | ||||||||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% | 5.00% | ||||||||
PRC | ||||||||||
Schedule of income taxes | ||||||||||
Statutory income tax rate | 25.00% | 25.00% | ||||||||
Withholding tax rate on dividends, foreign invested enterprises to their immediate holding companies | 10.00% | 10.00% | ||||||||
Threshold percentage of equity interest in PRC foreign invested enterprise to enjoy preferential withholding tax rate | 25.00% | 25.00% | ||||||||
Aggregate undistributed earnings of the Group's entities located in the PRC | ¥ 820,100 | 1,052,200 | ¥ 820,100 | $ 117,800 | ||||||
Unrecognized deferred tax liability on the permanently reinvested earnings | ¥ 82,000 | ¥ 105,200 | ¥ 82,000 | $ 11,800 | ||||||
Withholding tax rate on gain from disposal of available-for-sale debt investments | 10.00% | 10.00% | ||||||||
PRC | All other PRC incorporated entities of the Group | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 25.00% | 25.00% | ||||||||
PRC | High and New Technology Enterprises | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 15.00% | 15.00% | ||||||||
Number of years of reapplication for the status | 3 years | 3 years | ||||||||
PRC | High and New Technology Enterprises | Fenghuang Yutian | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | |||||||
PRC | High and New Technology Enterprises | Fenghuang On-line | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | |||||||
PRC | High and New Technology Enterprises | Tianying Jiuzhou | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 15.00% | |||||||||
PRC | High and New Technology Enterprises | Yitian Xindong | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | ||||||
PRC | Software Enterprise | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 12.50% | 12.50% | ||||||||
Number of years of tax exemption | 2 years | 2 years | ||||||||
Reduction rate upon applicable EIT rates | 50.00% | 50.00% | ||||||||
Number of years of tax rate reduction subsequent to years of tax exemption | 3 years | 3 years | ||||||||
PRC | Software Enterprise | Fenghuang Yutian | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 12.50% | |||||||||
PRC | Software Enterprise | Fenghuang Borui | ||||||||||
Schedule of income taxes | ||||||||||
Preferential income tax rate | 12.50% | 12.50% | 12.50% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the differences between PRC statutory income tax rate and the Group's effective income tax rate for PRC operations (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of income taxes | |||
Tax deductible expenses of the research and development expenses (in percent) | 175.00% | 175.00% | 150.00% |
PRC | |||
Schedule of income taxes | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Permanent differences | 18.00% | 46.20% | (10.10%) |
Change in valuation allowance | (33.00%) | (77.20%) | 2.90% |
Effect of preferential tax treatment | (18.70%) | (37.50%) | (6.60%) |
Uncertain tax positions | (0.70%) | (3.30%) | 2.90% |
Effective income tax rate | (9.40%) | (46.80%) | 14.10% |
Income Taxes - Combined effects
Income Taxes - Combined effects of income tax expense exemption and other preferential tax treatment (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2017CNY (¥)¥ / shares | |
Income Tax Disclosure [Abstract] | ||||
Effect of preferential tax treatment | ¥ (40,054) | $ (5,753) | ¥ (16,128) | ¥ 6,836 |
Basic net income/(loss) per share effect | (per share) | ¥ (0.07) | $ (0.01) | ¥ (0.03) | ¥ 0.01 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Deferred tax assets: | ||||||
Provision of allowance for doubtful accounts | ¥ 31,240 | $ 4,487 | ¥ 21,431 | |||
Accrued payroll and expenses and others | 32,849 | 4,720 | 25,576 | |||
Net operating loss carryforward | 136,503 | 19,607 | 69,150 | |||
Less: valuation allowance | (126,904) | (18,229) | (55,997) | $ (8,043) | ¥ (14,208) | ¥ (11,402) |
Total deferred tax assets, net | 73,688 | 10,585 | 60,160 | |||
Deferred tax liabilities: | ||||||
Unrealized holding gain of available-for-sale debt investments* | 190,830 | 27,412 | 132,272 | |||
Amortizable intangible assets from acquisition of a subsidiary | 5,668 | 814 | 7,376 | |||
Others | 1,312 | 188 | 1,312 | |||
Total deferred tax liabilities | 197,810 | 28,414 | 140,960 | |||
Particle | ||||||
Deferred tax liabilities: | ||||||
Unrealized holding gain of available-for-sale debt investments* | ¥ 190,800 | $ 27,400 | ¥ 132,300 |
Income Taxes - Net operating lo
Income Taxes - Net operating loss carryforward (Details) - Dec. 31, 2019 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | ¥ 827.4 | $ 118.8 |
Net operating tax loss carryforward, expire in 2020 | 29 | |
Net operating tax loss carryforward, expire in 2021 | 67.3 | |
Net operating tax loss carryforward, expire in 2022 | 69.7 | |
Net operating tax loss carryforward, expire in 2023 | 222.3 | |
Net operating tax loss carryforward, expire in 2024 | ¥ 439.1 |
Income Taxes - Movement of valu
Income Taxes - Movement of valuation allowance of deferred tax assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Balance as of January 1, | ¥ 55,997 | $ 8,043 | ¥ 14,208 | ¥ 11,402 |
Additions | 70,709 | 10,158 | 37,584 | 6,164 |
Increase from an acquired subsidiary | 997 | 143 | 8,576 | |
Reversals | (799) | (115) | (4,371) | (3,358) |
Balance as of December 31, | ¥ 126,904 | $ 18,229 | ¥ 55,997 | ¥ 14,208 |
Income Taxes - Movement of va_2
Income Taxes - Movement of valuation allowance (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Additions in valuation allowance | ¥ 70,709 | $ 10,158 | ¥ 37,584 | ¥ 6,164 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of liabilities associated with uncertain tax positions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Balance as of January 1, | ¥ 26,131 | $ 3,753 | ¥ 24,714 | ¥ 21,723 |
Increase related to current year tax positions | 1,481 | 213 | 1,417 | 2,991 |
Balance as of December 31, | ¥ 27,612 | $ 3,966 | ¥ 26,131 | ¥ 24,714 |
Ordinary Shares (Details)
Ordinary Shares (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock | ||
Ordinary shares, conversion features | The Parent, which is wholly owned by Phoenix TV, holds Class B ordinary shares, each of which is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. | |
Class A ordinary shares | ||
Class of Stock | ||
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, voting rights | one | |
Ordinary shares, issued | 264,998,965 | 264,824,592 |
Ordinary shares, outstanding | 264,998,965 | 264,824,592 |
Class B ordinary shares | ||
Class of Stock | ||
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, voting rights | 1.3 | |
Ordinary shares, issued | 317,325,360 | 317,325,360 |
Ordinary shares, outstanding | 317,325,360 | 317,325,360 |
Share-based Compensation - Allo
Share-based Compensation - Allocation of recognized period costs and expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Share-based Compensation, Recognized in costs and expenses | ||||
Share-based compensation recognized in costs and expenses | ¥ 20,221 | $ 2,905 | ¥ 13,989 | ¥ 20,852 |
Income tax benefit recognized for share-based compensation | 0 | 0 | 0 | |
Cost of revenues | ||||
Share-based Compensation, Recognized in costs and expenses | ||||
Share-based compensation recognized in costs and expenses | 6,830 | 981 | 3,750 | 5,017 |
Sales and marketing expenses | ||||
Share-based Compensation, Recognized in costs and expenses | ||||
Share-based compensation recognized in costs and expenses | 1,643 | 236 | 2,360 | 1,877 |
General and administrative expenses | ||||
Share-based Compensation, Recognized in costs and expenses | ||||
Share-based compensation recognized in costs and expenses | 9,025 | 1,296 | 5,072 | 10,796 |
Technology and product development expenses | ||||
Share-based Compensation, Recognized in costs and expenses | ||||
Share-based compensation recognized in costs and expenses | 2,723 | 392 | 2,807 | 3,162 |
Share Options | ||||
Share-based Compensation, Recognized in costs and expenses | ||||
Share-based compensation recognized in costs and expenses | ¥ 20,200 | $ 2,900 | ¥ 14,000 | ¥ 20,900 |
Share-based Compensation - Shar
Share-based Compensation - Share options, June 2008 scheme (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018itemshares | Sep. 30, 2017item$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | |
Share Options | ||||||
Maximum percentage of ordinary shares in issue upon exercise of all outstanding options granted and yet to be exercised | 30.00% | 30.00% | ||||
Recognized share-based compensation | ¥ 20,221 | $ 2,905 | ¥ 13,989 | ¥ 20,852 | ||
Number of Options, Granted | 15,794,018 | 15,794,018 | 3,719,500 | 7,255,000 | ||
June 2018 Scheme | ||||||
Share Options | ||||||
Maximum percentage of the ordinary shares in issue on effective date of option scheme ("Limit") | 10.00% | 10.00% | ||||
Maximum percentage of ordinary shares in issue on effective date of limit as refreshed (Refreshed "Limit") | 10.00% | 10.00% | ||||
Share options, expiration period | 4 years | 4 years | ||||
Award vesting period | 10 years | 10 years | ||||
June 2018 Scheme | Non employee | ||||||
Share Options | ||||||
Share options, expiration period | 10 years | |||||
Award vesting period | 4 years | |||||
Number of Options, Granted | 3,314,500 | |||||
Number of non employees | item | 2 | |||||
June 2008 Scheme, Plan Modification | ||||||
Share Options | ||||||
Recognized share-based compensation | ¥ 100 | $ 20 | ¥ 1,300 | ¥ 5,900 | ||
June 2008 Scheme | Non employee | ||||||
Share Options | ||||||
Share options, expiration period | 10 years | |||||
Award vesting period | 4 years | |||||
Number of Options, Granted | 1,720,000 | |||||
Number of non employees | item | 1 | |||||
Grant date fair value of options granted (US$ per share) | $ / shares | $ 0.4648 |
Share-based Compensation - Sh_2
Share-based Compensation - Share option activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | ||||
Number of Options, Outstanding, Beginning Balance | 34,251,734 | 39,288,939 | 44,445,135 | |
Number of Options, Granted | 15,794,018 | 3,719,500 | 7,255,000 | |
Number of Options, Forfeited and expired | (7,128,379) | (3,933,599) | (7,319,500) | |
Number of Options, Exercised | (174,373) | (4,823,106) | (5,091,696) | |
Number of Options, Outstanding, Ending Balance | 42,743,000 | 34,251,734 | 39,288,939 | 44,445,135 |
Number of Options, Exercisable | 25,806,736 | |||
Number of Options, Vested and expected to vest | 33,809,645 | |||
Weighted Average Exercise Price | ||||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 0.47 | $ 0.42 | $ 0.43 | |
Weighted Average Exercise Price, Granted | 0.48 | 0.56 | 0.42 | |
Weighted Average Exercise Price, Forfeited and expired | 0.49 | 0.47 | 0.50 | |
Weighted Average Exercise Price, Exercised | 0.43 | 0.12 | 0.37 | |
Weighted Average Exercise Price, Outstanding, Ending Balance | 0.47 | $ 0.47 | $ 0.42 | $ 0.43 |
Weighted Average Exercise Price, Exercisable | 0.47 | |||
Weighted Average Exercise Price, Vested and expected to vest | $ 0.47 | |||
Weighted Average Remaining Contractual Life | ||||
Weighted Average Remaining Contractual Life, Outstanding | 6 years 4 months 24 days | 6 years 4 months 24 days | 6 years 8 months 12 days | 7 years 1 month 6 days |
Weighted Average Remaining Contractual Life, Exercisable | 4 years 6 months | |||
Weighted Average Remaining Contractual Life, Vested and expected to vest | 5 years 7 months 6 days | |||
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $ 15,300 | $ 1,800 | ||
Aggregate Intrinsic Value, Exercised | $ 20 | $ 2,300 | 2,100 | |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ 15,300 | $ 1,800 |
Share-based Compensation - Sh_3
Share-based Compensation - Share options, additional information (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares | Dec. 31, 2019USD ($)$ / shares | |
Share Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Weighted-average grant date fair value of options granted (US$ per share) | $ 0.20 | $ 0.48 | $ 0.48 | |
Unrecognized share-based compensation for options | $ 9.4 | $ 1.4 | ||
Remaining weighted-average period for recognition | 3 years 2 months 12 days | |||
Ordinary Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Closing stock price (US$ per share) | $ 0.25 | |||
ADS | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Closing stock price (US$ per share) | $ 1.97 |
Share-based Compensation - Sh_4
Share-based Compensation - Share option assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected volatility rate (as a percent) | 55.92% | 56.76% | 48.84% |
Expected term (years) | 1 year | 2 years 6 months | 3 years 1 month 17 days |
Risk-free interest rate (per annum) (as a percent) | 2.33% | 0.91% | 0.90% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected volatility rate (as a percent) | 77.98% | 57.10% | 57.06% |
Expected term (years) | 6 years 1 month 28 days | 6 years 1 month 28 days | 6 years 1 month 28 days |
Risk-free interest rate (per annum) (as a percent) | 3.12% | 2.09% | 1.92% |
Share-based Compensation - Sh_5
Share-based Compensation - Share-based Awards of the Company's Subsidiaries, VIEs and Subsidiaries of the VIEs (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019shares | Dec. 31, 2018¥ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017$ / shares | Mar. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of share options granted | 15,794,018 | 15,794,018 | 3,719,500 | 7,255,000 | |||||
Share-based compensation recognized in costs and expenses | ¥ 20,221 | $ 2,905 | ¥ 13,989 | ¥ 20,852 | |||||
Exercise price of share options granted | $ / shares | $ 0.48 | $ 0.56 | $ 0.42 | ||||||
Restricted stock units | Fread Limited* | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of shares available for future grant | 2,000,000 | ||||||||
Number of share options granted | 920,000 | 920,000 | |||||||
Share-based compensation recognized in costs and expenses | ¥ 3,800 | $ 600 | |||||||
Share Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Share-based compensation recognized in costs and expenses | 20,200 | 2,900 | ¥ 14,000 | ¥ 20,900 | |||||
Share Options | Yitian Xindong | 2018 Tadu Option Scheme | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Share-based compensation recognized in costs and expenses | ¥ 8,400 | $ 1,200 | |||||||
Share Options | Yitian Xindong | 2018 Tadu Option Scheme | Telling Telecom | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of shares available for future grant | 6,750,000 | 6,750,000 | 6,750,000 | ||||||
Exercise price of share options granted | ¥ / shares | ¥ 3 | ||||||||
Share Options | Yitian Xindong | 2018 Tadu Option Scheme | Requisite service period from December 28, 2018 to March 31, 2021 | Telling Telecom | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of share granted | 4,588,994 | ||||||||
Share Options | Yitian Xindong | 2018 Tadu Option Scheme | Requisite service period from June 18, 2019 to March 31, 2021 | Telling Telecom | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of share options granted | 872,299 | ||||||||
Share Options | Yitian Xindong | 2018 Tadu Option Scheme | Performance targets | Telling Telecom | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of share options granted | 2,550,203 | 2,550,203 |
Segments (Details)
Segments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Segments | |||||
Total revenues | [1] | ¥ 1,531,062 | $ 219,923 | ¥ 1,377,379 | ¥ 1,575,092 |
Cost of revenues | [1] | (768,302) | (110,360) | (596,548) | (727,197) |
Gross profit | 762,760 | 109,563 | 780,831 | 847,895 | |
Net advertising services | |||||
Segments | |||||
Total revenues | [1] | 1,263,485 | 181,488 | 1,198,271 | 1,353,480 |
Cost of revenues | (638,160) | (91,666) | (517,533) | (602,945) | |
Gross profit | 625,325 | 89,822 | 680,738 | 750,535 | |
Paid services | |||||
Segments | |||||
Total revenues | [1] | 267,577 | 38,435 | 179,108 | 221,612 |
Cost of revenues | (130,142) | (18,694) | (79,015) | (124,252) | |
Gross profit | ¥ 137,435 | $ 19,741 | ¥ 100,093 | ¥ 97,360 | |
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial instruments measured at fair value on recurring basis by level within the fair value hierarchy (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Assets: | |||
Available-for-sale debt investments | ¥ 2,014,537 | $ 289,370 | ¥ 1,961,474 |
Financial assets — contingent returnable consideration (Note 4) | 98,473 | $ 14,145 | 18,211 |
Carrying Value | |||
Assets: | |||
Term deposits and short term investments | 1,271,889 | 912,594 | |
Restricted cash | 82,934 | 269,648 | |
Available-for-sale debt investments | 2,014,537 | 1,961,474 | |
Financial assets — contingent returnable consideration (Note 4) | 98,473 | 18,211 | |
Liability: | |||
Forward contract in relation to future disposal of investments in Particle | 15,988 | ||
Fair Value Recurring Basis | Level 1 | Fair Value | |||
Assets: | |||
Term deposits and short term investments | 488,488 | 93,398 | |
Restricted cash | 82,934 | 269,648 | |
Fair Value Recurring Basis | Level 2 | Fair Value | |||
Assets: | |||
Term deposits and short term investments | 783,401 | 819,196 | |
Fair Value Recurring Basis | Level 3 | Fair Value | |||
Assets: | |||
Available-for-sale debt investments | 2,014,537 | 1,961,474 | |
Financial assets — contingent returnable consideration (Note 4) | 98,473 | ¥ 18,211 | |
Liability: | |||
Forward contract in relation to future disposal of investments in Particle | ¥ 15,988 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of fair value measurements of available-for-sale debt investments (Details) - Available-for-sale Securities - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Measurements | |||
Beginning balance | ¥ 1,961,474 | ¥ 1,196,330 | ¥ 939,432 |
Change in fair value | 1,385,379 | 698,592 | 321,538 |
Disposal of part available-for-sale debt investments | (1,390,031) | ||
Currency translation adjustment | 57,715 | 64,552 | (64,640) |
Additional investments | 2,000 | ||
Ending balance | ¥ 2,014,537 | ¥ 1,961,474 | ¥ 1,196,330 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Dec. 31, 2019shares |
Particle | Proposed Buyers | Series B and Series C convertible redeemable preferred shares | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Preferred shares transferred on sale | 94,802,752 |
Fair Value Measurements - Key i
Fair Value Measurements - Key inputs used in available-for-sale investments valuation (Details) - Available-for-sale Securities - Level 3 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Discount rate | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.23 | ||
Discount rate | Under the Status Quo | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.225 | ||
Discount rate | Under the Trade Sale | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.17 | ||
Lack of marketability discount ("DLOM") | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.05 | 0.25 | |
Lack of marketability discount ("DLOM") | Under the Status Quo | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.20 | ||
Lack of marketability discount ("DLOM") | Under the Trade Sale | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.15 | ||
Volatility | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.457 | 0.453 | |
Volatility | Under the Status Quo | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.445 | ||
Volatility | Under the Trade Sale | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.448 | ||
Revenue growth rate | Minimum | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.050 | ||
Revenue growth rate | Maximum | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.938 | ||
Revenue growth rate | Under the Status Quo | Minimum | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.037 | ||
Revenue growth rate | Under the Status Quo | Maximum | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.758 | ||
Revenue growth rate | Under the Trade Sale | Minimum | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.037 | ||
Revenue growth rate | Under the Trade Sale | Maximum | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.758 | ||
Terminal growth rate | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.03 | ||
Terminal growth rate | Under the Status Quo | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.03 | ||
Terminal growth rate | Under the Trade Sale | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.03 | ||
Control premium | Under the Trade Sale | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.30 | ||
Probability of each scenario | Under the Status Quo | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.60 | ||
Probability of each scenario | Under the Trade Sale | |||
Key inputs used in available-for-sale investments valuation | |||
Inputs used in valuation of available-for-sale investments | 0.40 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Reconciliation of the fair value measurements of financial assets - contingent returnable consideration (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | ||
Fair Value Disclosures [Abstract] | ||||
Beginning balance | ¥ 18,211 | |||
Acquisition of Yitian Xindong | ¥ 18,211 | |||
Acquisition of noncontrolling interests in Yitian Xindong | 18,211 | |||
Changes in fair value of financial assets-contingent returnable consideration | [1] | 62,051 | $ 8,913 | |
Ending balance | ¥ 98,473 | $ 14,145 | ¥ 18,211 | |
[1] | (1)Transactions with related parties included in revenues, cost of revenues and operating expenses are as follows (Note 24): Net advertising revenues 67,393 41,482 50,700 7,283 Paid services revenues 139,149 87,131 72,454 10,407 Cost of revenues (57,057) (30,167) (26,728) (3,839) Sales and marketing expenses (748) (4,341) (4,157) (597) General and administrative expenses (6,245) (7,918) (7,045) (1,012) |
Net Income_ (Loss) per Share (D
Net Income/ (Loss) per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income/(loss) attributable to Phoenix New Media Limited | ¥ 727,829 | $ 104,546 | ¥ (63,222) | ¥ 37,472 |
Denominator: | ||||
Weighted average number of contingently issuable shares | 568,352 | 1,690,621 | ||
Numerator: | ||||
Net income/(loss) attributable to Phoenix New Media Limited | ¥ 727,829 | $ 104,546 | ¥ (63,222) | ¥ 37,472 |
Ordinary Shares | ||||
Denominator: | ||||
Weighted average number of shares outstanding | 582,275,800 | 582,275,800 | 580,516,101 | 573,096,266 |
Weighted average number of contingently issuable shares | 568,352 | 1,690,621 | ||
Denominator used in computing net income/(loss) per share — basic | 582,275,800 | 582,275,800 | 581,084,453 | 574,786,887 |
Net income/(loss) per Class A and Class B ordinary share — basic | (per share) | ¥ 1.25 | $ 0.18 | ¥ (0.11) | ¥ 0.07 |
Weighted average number of Class A and Class B ordinary shares used in computing net income/(loss) per share: | ||||
Denominator used in computing net income/(loss) per share —basic | 582,275,800 | 582,275,800 | 581,084,453 | 574,786,887 |
Share-based awards | 15,647,020 | |||
Denominator used in computing net income/(loss) per share — diluted | 582,275,800 | 582,275,800 | 581,084,453 | 590,433,907 |
Net income/(loss) per Class A and Class B ordinary share — diluted | (per share) | ¥ 1.25 | $ 0.18 | ¥ (0.11) | ¥ 0.06 |
ADS | ||||
Denominator: | ||||
Denominator used in computing net income/(loss) per share — basic | 72,784,475 | 72,784,475 | 72,635,557 | 71,848,361 |
Net income/(loss) per Class A and Class B ordinary share — basic | (per share) | ¥ 10 | $ 1.44 | ¥ (0.87) | ¥ 0.52 |
Weighted average number of Class A and Class B ordinary shares used in computing net income/(loss) per share: | ||||
Denominator used in computing net income/(loss) per share —basic | 72,784,475 | 72,784,475 | 72,635,557 | 71,848,361 |
Denominator used in computing net income/(loss) per share — diluted | 72,784,475 | 72,784,475 | 72,635,557 | 73,804,238 |
Net income/(loss) per Class A and Class B ordinary share — diluted | (per share) | ¥ 10 | $ 1.44 | ¥ (0.87) | ¥ 0.51 |
Net Income_ (Loss) per Share -
Net Income/ (Loss) per Share - Anti-dilutive securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Anti-dilutive securities | |||
Weighted Average Number of Shares, Contingently Issuable | 568,352 | 1,690,621 | |
Options to purchase ordinary shares | |||
Anti-dilutive securities | |||
Anti-dilutive securities excluded from computation of diluted net income/(loss) per share | 34,445,604 | 35,183,115 | 2,223,005 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Future minimum commitments under non-cancellable agreements | |
2020 | ¥ 40,177 |
2021 | 10,110 |
2022 | 3,584 |
2023 | 542 |
2024 and thereafter | 2,338 |
Total | 56,751 |
Property Management Costs | |
Future minimum commitments under non-cancellable agreements | |
2020 | 8,608 |
2021 | 6,251 |
2022 | 2,838 |
Total | 17,697 |
Bandwidth Purchases | |
Future minimum commitments under non-cancellable agreements | |
2020 | 5,268 |
2021 | 307 |
2022 | 52 |
Total | 5,627 |
Cooperation with Phoenix TV Group | |
Future minimum commitments under non-cancellable agreements | |
2020 | 3,780 |
2021 | 2,000 |
Total | 5,780 |
Content Purchases | |
Future minimum commitments under non-cancellable agreements | |
2020 | 18,893 |
2021 | 1,003 |
2022 | 634 |
2023 | 542 |
2024 and thereafter | 2,328 |
Total | 23,400 |
Property and Equipment, and Intangible Assets | |
Future minimum commitments under non-cancellable agreements | |
2020 | 677 |
2021 | 487 |
Total | 1,164 |
Others | |
Future minimum commitments under non-cancellable agreements | |
2020 | 2,951 |
2021 | 62 |
2022 | 60 |
2024 and thereafter | 10 |
Total | ¥ 3,083 |
Commitments and Contingencies_2
Commitments and Contingencies - Litigation, Long-term Liabilities for Uncertain Tax Positions (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 28, 2020CNY (¥) | Apr. 30, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Loss Contingencies | ||||||
Uncertain tax positions | ¥ 27,612,000 | $ 3,966 | ¥ 26,131,000 | |||
Subsequent Event | ||||||
Loss Contingencies | ||||||
Amount of damages awarded to plaintiffs | ¥ 1,000,000 | |||||
Claims about infringement of copyright and unauthorized selling on the Group's website and mobile applications for literature work | ||||||
Loss Contingencies | ||||||
Related claim for damages | ¥ 99,800,000 | ¥ 235,800,000 | ||||
Maximum actual income the Group generated from such literature work | ¥ 1,500 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Non US listed part of the Phoenix TV Group | |
Related Party Transaction | |
Relationships with Group | Under common control by Phoenix TV |
CMCC | |
Related Party Transaction | |
Relationships with Group | A shareholder of Phoenix TV |
Lilita | |
Related Party Transaction | |
Relationships with Group | Other equity investee, related party of Phoenix TV Group |
Particle | |
Related Party Transaction | |
Relationships with Group | Available-for-sale debt investee, with common directors of the Company |
Tianbo | |
Related Party Transaction | |
Relationships with Group | Former equity method investee, and current subsidiary of VIEs since April 1, 2019 |
Phoenix FM | |
Related Party Transaction | |
Relationships with Group | Equity method investee |
Fenghuang Jingcai | |
Related Party Transaction | |
Relationships with Group | Equity method investee |
Yitong Technology | |
Related Party Transaction | |
Relationships with Group | Other equity investee |
Lifeix Inc. | |
Related Party Transaction | |
Relationships with Group | Other equity investee |
Kuailai | |
Related Party Transaction | |
Relationships with Group | Other equity investee |
Fengyi Technology | |
Related Party Transaction | |
Relationships with Group | Available-for-sale debt investee |
Mr. Gao Ximin and Mr. Qiao Haiyan | |
Related Party Transaction | |
Relationships with Group | Legal shareholders of Tianying Jiuzhou and employees of the Group |
Mr. He Yansheng and Mr Shang Xiaowei | |
Related Party Transaction | |
Relationships with Group | Legal shareholder of Yifeng Lianhe and employee of the Group |
Mr. Wu Haipeng and Mr. He Yansheng | |
Related Party Transaction | |
Relationships with Group | Legal shareholders of Chenhuan and employees of the Group |
Related Party Transactions - Tr
Related Party Transactions - Transactions with Non US Listed Part of Phoenix TV Group and CMCC (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Related Party Transaction | ||||
Advertising and promotion expenses charged by related party | ¥ 4,157 | $ 597 | ¥ 4,341 | ¥ 748 |
Corporate administrative expenses charged by related party | 7,045 | 1,012 | 7,918 | 6,245 |
Advertising revenues earned from related party | 50,700 | 7,283 | 41,482 | 67,393 |
Paid services revenues earned from and through related party | 72,454 | 10,407 | 87,131 | 139,149 |
Non US listed part of the Phoenix TV Group | ||||
Related Party Transaction | ||||
Content provided by related party | (11,302) | (1,623) | (12,398) | (12,090) |
Advertising and promotion expenses charged by related party | (4,157) | (597) | (4,258) | (23) |
Corporate administrative expenses charged by related party | (2,057) | (295) | (2,166) | (2,676) |
Trademark license fees charged by related party | (4,988) | (716) | (5,752) | (3,569) |
Project cost charged by related party | (1,148) | (165) | (1,763) | (1,217) |
Revenues earned from related party | 15,705 | 2,256 | 14,354 | 9,454 |
CMCC | ||||
Related Party Transaction | ||||
Advertising revenues earned from related party | 23,256 | 3,341 | 27,532 | 33,491 |
Paid services revenues earned from and through related party | 71,248 | 10,234 | 86,352 | 138,712 |
Revenue sharing fees and bandwidth costs to related party | ¥ (14,216) | $ (2,042) | ¥ (15,929) | ¥ (43,604) |
Related Party Transactions - _2
Related Party Transactions - Transactions with Investees (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Related Party Transaction | |||||
Advertising revenues earned from related party | ¥ 50,700 | $ 7,283 | ¥ 41,482 | ¥ 67,393 | |
Phoenix FM | |||||
Related Party Transaction | |||||
Revenues earned from related party | 10 | 1 | 160 | 855 | |
Tianbo | |||||
Related Party Transaction | |||||
Advertising revenues earned from related party | [1] | 16 | 2 | 193 | 13,869 |
Advances provided to related party | [1] | 247 | 35 | 10,721 | 29 |
Lilita | |||||
Related Party Transaction | |||||
Revenues earned from related party | 305 | 44 | 21 | 10,161 | |
Particle | |||||
Related Party Transaction | |||||
Loans provided to related party and related interest income including the effect of foreign exchange | 87,514 | ||||
Loans repaid by related party | (84,083) | (48,747) | |||
Related interest income including the effect of foreign exchange arising from convertible loans to related party | 8,993 | (1,799) | |||
Corporate administrative expenses | (82) | (725) | |||
Sale of assets to Particle at carrying value | (413) | 4,740 | |||
Other income earned from related party | 1,990 | 286 | |||
Revenue sharing fees charged by investees | (62) | (9) | ¥ (77) | ¥ (111) | |
Fengyi Technology | |||||
Related Party Transaction | |||||
Advertising revenues earned from related party | ¥ 12,612 | $ 1,812 | |||
[1] | As Tianbo has been consolidated starting from April 1, 2019, related party transactions with Tianbo in 2019 only included those incurred from January 1, 2019 to March 31, 2019. |
Related Party Transactions - Am
Related Party Transactions - Amounts of due from and due to related parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | [1] | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Amounts due from related parties: | ||||
Due from related party | ¥ 59,723 | $ 8,579 | ¥ 91,228 | |
Amounts due to related parties: | ||||
Due to related party | 34,223 | 4,916 | 25,218 | |
CMCC | ||||
Amounts due from related parties: | ||||
Due from related party | 46,145 | 6,628 | 59,871 | |
Amounts due to related parties: | ||||
Due to related party | 3,668 | 527 | 605 | |
Non US listed part of the Phoenix TV Group | ||||
Amounts due from related parties: | ||||
Due from related party | 10,224 | 1,469 | 10,489 | |
Amounts due to related parties: | ||||
Due to related party | 24,637 | 3,539 | 14,396 | |
Particle | ||||
Amounts due from related parties: | ||||
Due from related party | 1,040 | 149 | 10,022 | |
Fengyi Technology | ||||
Amounts due from related parties: | ||||
Due from related party | 1,900 | 273 | ||
Amounts due to related parties: | ||||
Due to related party | 4,996 | 718 | ||
Other Investees | ||||
Amounts due from related parties: | ||||
Due from related party | 414 | 60 | 10,846 | |
Yitong Technology | ||||
Amounts due to related parties: | ||||
Due to related party | 6,500 | |||
Others | ||||
Amounts due to related parties: | ||||
Due to related party | ¥ 922 | $ 132 | ¥ 3,717 | |
[1] | As Tianbo has been consolidated from April 1, 2019, the amounts of due from and due to related parties as of December 31, 2019 did not include those due from and due to Tianbo. |
Related Party Transactions - Un
Related Party Transactions - Unsecured short-term loan and bad debt provision to receivables (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2017USD ($) | Jan. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016CNY (¥) | |
Related Party Transaction | |||||||||
Bad debt provision to receivables | ¥ 78,684 | ¥ 65,454 | ¥ 118,886 | $ 17,077 | $ 11,302 | ¥ 91,348 | |||
Particle | |||||||||
Related Party Transaction | |||||||||
Principal amount of short-term unsecured loans granted | $ | $ 14,800 | ||||||||
Loans repaid by related party | 84,083 | 48,747 | |||||||
Interest rate of short-term unsecured loans | 4.35% | ||||||||
Maturity of short-term unsecured loans | 24 months | ||||||||
Total interest income arising from loans provided to Particle, convertible loans due from Particle and bank interest expenses incurred by the Company but borne by Particle | ¥ 9,900 | ¥ 23,100 | |||||||
Bad debt provision to receivables | ¥ 11,200 | $ 1,600 | |||||||
Particle | Loan Granted to Related Party in November 2016 | |||||||||
Related Party Transaction | |||||||||
Loans repaid by related party | $ | $ 6,800 | ||||||||
Particle | Loan Granted to Related Party in January 2017 | |||||||||
Related Party Transaction | |||||||||
Principal amount of short-term unsecured loans granted | ¥ 74,000 | ||||||||
Interest rate of short-term unsecured loans | 9.00% | ||||||||
Maturity of short-term unsecured loans | 12 months |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - Company's subsidiaries, VIEs and subsidiaries of VIEs incorporated in PRC ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017 | Dec. 31, 2019USD ($) | |
Restricted Net Assets | ||||
Portion of after-tax profit to be allocated to general reserve fund under PRC law (as a percent) | 10.00% | |||
Required general reserve/registered capital ratio to de-force compulsory net profit allocation to general reserve (as a percent) | 50.00% | |||
Restricted net assets | ¥ 759.1 | ¥ 552.2 | $ 109 | |
Maximum | ||||
Restricted Net Assets | ||||
Percentage of restricted net assets | 25.00% | 25.00% | 25.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Proposed Buyers - Particle shares in Millions, $ in Millions | Jan. 20, 2020USD ($)shares |
Long De | Co-Sale Agreement | |
Subsequent Event [Line Items] | |
Preferred shares transferred | shares | 9.8 |
Total cash consideration of the Company | $ 20.7 |
Phoenix New Media Limited | Supplemental and Co-Sale Agreement | |
Subsequent Event [Line Items] | |
Total cash consideration of the Company | $ 427.3 |
Percentage of equity interests totally sold by the Company | 29.19% |