Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Trading Symbol | WBAI |
Entity Registrant Name | 500.com Ltd |
Entity Central Index Key | 1517496 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Class A Ordinary shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 254,844,582 |
Class B Ordinary shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 96,634,529 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
Current assets: | |||
Cash and cash equivalents | $78,257 | 485,556 | 544,318 |
Restricted cash | 2,042 | 12,669 | 71,662 |
Time deposits | 67,031 | 415,903 | 121,085 |
Short-term investments | 11,311 | 70,182 | |
Accounts receivable | 11,998 | 74,445 | 62,522 |
Prepayments and other current assets | 25,447 | 157,887 | 94,273 |
Deferred tax assets, current portion | 6,408 | 39,761 | 16,016 |
Total current assets | 202,494 | 1,256,403 | 909,876 |
Non-current assets: | |||
Property and equipment, net | 6,620 | 41,075 | 36,213 |
Intangible assets, net | 541 | 3,354 | 3,377 |
Deposits | 1,623 | 10,071 | 5,939 |
Long-term investments | 1,072 | 6,652 | |
Deferred tax assets, non-current | 55 | 343 | 157 |
Other non-current assets | 289 | 1,794 | 2,738 |
Total non-current assets | 10,200 | 63,289 | 48,424 |
TOTAL ASSETS | 212,694 | 1,319,692 | 958,300 |
Current liabilities: | |||
Short-term loans (including short-term loans of the consolidated VIEs without recourse to 500.com Limited of RMB12,802 and Nil as of December 31, 2013 and 2014, respectively) | 12,802 | ||
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB8,336 and RMB 24,828 (US$4,002) as of December 31, 2013 and 2014, respectively) | 4,936 | 30,634 | 13,012 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB72,857 and RMB100,367 (US$16,176) as of December 31, 2013 and 2014, respectively) | 19,016 | 117,992 | 88,246 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB1,863 and RMB4,680 (US$754) as of December 31, 2013 and 2014, respectively) | 1,491 | 9,250 | 4,507 |
Total current liabilities | 25,443 | 157,876 | 118,567 |
Non-current liabilities: | |||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB29,328 and RMB 42,540 (US$6,856) as of December 31, 2013 and 2014, respectively) | 7,123 | 44,194 | 30,313 |
Total non-current liabilities | 7,123 | 44,194 | 30,313 |
TOTAL LIABILITIES | 32,566 | 202,070 | 148,880 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Additional paid-in capital | 178,293 | 1,106,234 | 967,233 |
Accumulated other comprehensive income | 3,648 | 22,637 | 10,492 |
Accumulated deficit | -1,833 | -11,370 | -168,419 |
Total shareholders' equity | 180,128 | 1,117,622 | 809,420 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $212,694 | 1,319,692 | 958,300 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | USD ($) | CNY | CNY | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | CNY | ||||
Short-term loans (including short-term loans of the consolidated VIEs without recourse to 500.com Limited of RMB12,802 and Nil as of December 31, 2013 and 2014, respectively) | 12,802 | 12,802 | ||||||||
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB8,336 and RMB 24,828 (US$4,002) as of December 31, 2013 and 2014, respectively) | 4,936 | 30,634 | 13,012 | 4,002 | 24,828 | 8,336 | ||||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB72,857 and RMB100,367 (US$16,176) as of December 31, 2013 and 2014, respectively) | 19,016 | 117,992 | 88,246 | 16,176 | 100,367 | 72,857 | ||||
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB1,863 and RMB4,680 (US$754) as of December 31, 2013 and 2014, respectively) | 1,491 | 9,250 | 4,507 | 754 | 4,680 | 1,863 | ||||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB29,328 and RMB 42,540 (US$6,856) as of December 31, 2013 and 2014, respectively) | $7,123 | 44,194 | 30,313 | $6,856 | 42,540 | 29,328 | ||||
Ordinary shares, par value | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 700,000,000 | 700,000,000 | 300,000,000 | 300,000,000 | ||||
Ordinary shares, shares issued | 254,844,582 | 66,539,000 | 96,634,529 | 262,197,451 | ||||||
Ordinary shares, shares outstanding | 254,844,582 | 66,539,000 | 96,634,529 | 262,197,451 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net Revenues | $93,434 | 579,717 | 259,534 | 171,527 |
Operating expenses: | ||||
Cost of services | -8,689 | -53,909 | -27,818 | -18,476 |
Sales and marketing | -28,025 | -173,883 | -84,596 | -45,794 |
General and administrative | -25,192 | -156,309 | -73,190 | -57,784 |
Service development expenses | -9,573 | -59,398 | -28,686 | -26,571 |
Write-off of deferred offering expenses | -522 | -3,241 | -6,404 | |
Total operating expenses | -72,001 | -446,740 | -214,290 | -155,029 |
Other operating income | 2,807 | 17,414 | 14,560 | 4,193 |
Government grant | 587 | 3,643 | 2,792 | 2,242 |
Other operating expenses | -730 | -4,527 | -2,678 | -1,821 |
Operating profit | 24,097 | 149,507 | 59,918 | 21,112 |
Interest income | 2,741 | 17,009 | 2,058 | 1,132 |
Interest expense | -57 | -356 | -5,407 | |
Changes in fair value of the derivative component of the convertible note | -26,809 | |||
Changes in fair value of the structured deposit | -181 | -1,124 | ||
Income before income tax | 26,600 | 165,036 | 29,760 | 22,244 |
Income tax benefit (expense) | -1,287 | -7,987 | 76,294 | -18,001 |
Net income | 25,313 | 157,049 | 106,054 | 4,243 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation gain (loss) | 1,957 | 12,145 | -5,496 | 58 |
Comprehensive income | $27,270 | 169,194 | 100,558 | 4,301 |
Earnings per share for Class A and Class B ordinary shares outstanding: | ||||
Basic | $0.07 | 0.46 | 0.45 | 0.02 |
Diluted | $0.07 | 0.44 | 0.41 | 0.02 |
Earnings per American Depositary Share ("ADS") (1 ADS represents 10 Class A ordinary shares) | ||||
Basic | $0.74 | 4.62 | 4.45 | |
Diluted | $0.71 | 4.39 | 4.08 | |
Weighted average number of Class A and Class B ordinary shares outstanding: | ||||
Basic | 339,782,819 | 339,782,819 | 238,342,685 | 229,374,777 |
Diluted | 357,848,704 | 357,848,704 | 259,729,367 | 233,678,481 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
Cash flow from operating activities | ||||
Net income | $25,313 | 157,049 | 106,054 | 4,243 |
Adjustments to reconcile net income to net cash provided in operating activities: | ||||
Depreciation of property and equipment | 1,395 | 8,653 | 7,847 | 5,167 |
Amortization of intangible assets | 263 | 1,634 | 659 | 353 |
Deferred tax expense (benefit) | -3,857 | -23,931 | -97,133 | 7,145 |
Share-based compensation | 14,493 | 89,922 | 7,561 | 13,704 |
Losses(gain) on disposal of property and equipment | -2 | 518 | 904 | |
Write-off of deferred offering expenses | 522 | 3,241 | 6,404 | |
Interest expense relating to convertible note | 3,933 | |||
Changes in fair value of the derivative component of the convertible note | 26,809 | |||
Changes in fair value of the structured deposit | 181 | 1,124 | ||
Reimbursement of American Depositary Receipt ("ADR") program related expenses | -427 | -2,648 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | -1,922 | -11,923 | -39,585 | 12,545 |
Accounts receivable due from employees | 225 | 5,788 | ||
Prepayments and other current assets | -6,852 | -42,511 | -25,616 | 25,662 |
Deposits | -666 | -4,132 | -476 | 2,286 |
Accrued expenses and other current liabilities | 6,097 | 37,831 | 22,876 | 511 |
Accrued payroll and welfare payable | 2,840 | 17,622 | 2,604 | -1,849 |
Amount due to a related party | -8,520 | |||
Long-term payables | 2,237 | 13,881 | 18,461 | 8,257 |
Income tax payable | 764 | 4,743 | 2,953 | 1,379 |
Net cash generated from operating activities | 40,381 | 250,553 | 29,170 | 92,499 |
Cash flows from investing activities | ||||
Acquisition of property and equipment | -2,493 | -15,469 | -9,111 | -29,840 |
Acquisition of intangible assets | -277 | -1,719 | -416 | -2,247 |
Acquisition of other non-current assets | -3,886 | -24,114 | -2,738 | |
Restricted cash | 400 | 2,481 | -3,941 | -11,209 |
Short-term investments | -11,492 | -71,306 | 4,000 | |
Time deposits | -46,035 | -285,626 | -121,085 | |
Change in amounts due from related parties | 188,242 | -85,616 | ||
Proceeds from disposal of property and equipment | 1 | 9 | 1,014 | 43 |
Net cash generated from (used in) investing activities | -63,782 | -395,744 | 51,965 | -124,869 |
Cash flows from financing activities | ||||
Proceeds from short-term bank borrowings | 161 | 1,000 | 201,290 | |
Repayment of short-term bank borrowings | -2,224 | -13,802 | -188,488 | |
Restricted cash | 9,108 | 56,512 | -56,512 | |
Proceeds from the issuance of the convertible note | 122,584 | |||
Proceeds from the exercise of share options | 7,863 | 48,788 | 3,263 | |
Proceeds from the private placement | 91,994 | |||
Proceeds from the issuance of ordinary shares | 43,006 | |||
Proceeds from the initial public offering ("IPO"), net of issuance costs | 456,835 | |||
Repurchase of ordinary shares | -39,460 | |||
Payment of dividends | -194,526 | |||
Reimbursement of ADR program related expenses | 509 | 3,161 | ||
Payment for public offering expenses | -1,730 | -10,737 | -3,551 | |
Net cash (used in) generated from financing activities | 13,687 | 84,922 | 436,440 | -5 |
Effect of exchange rate changes on cash and cash equivalents | 243 | 1,507 | -4,812 | |
Net increase (decrease) in cash and cash equivalents | -9,471 | -58,762 | 512,763 | -32,375 |
Cash and cash equivalents at beginning of the year | 87,728 | 544,318 | 31,555 | 63,930 |
Cash and cash equivalents at end of the year | 78,257 | 485,556 | 544,318 | 31,555 |
Supplemental disclosures of cash flow information: | ||||
Income tax paid | -2,552 | -15,836 | -2,363 | -1,920 |
Interest paid | -57 | -356 | -694 | |
Interest received | 1,703 | 10,568 | 1,750 | 1,132 |
Non-cash movements : | ||||
Payable to a related party from repurchase of ordinary shares | 8,520 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) | Total | Total | Ordinary shares [Member] | Ordinary shares [Member] | Additional paid-in capital [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] | Accumulated deficit [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] |
In Thousands, except Share data | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Ordinary shares [Member] | USD ($) | CNY | Ordinary shares [Member] |
Balance at Dec. 31, 2011 | 74,349 | 84 | 247,051 | 15,930 | -188,716 | |||||||||||
Balance, shares at Dec. 31, 2011 | 230,768,220 | |||||||||||||||
Net income | 4,243 | 4,243 | 4,243 | |||||||||||||
Other comprehensive income (loss) Foreign currency translation gain (loss) | 58 | 58 | ||||||||||||||
Repurchase and cancellation of ordinary shares | -47,980 | -5 | -47,975 | |||||||||||||
Repurchase and cancellation of ordinary shares, shares | -19,250,000 | |||||||||||||||
Issuance of ordinary shares | 43,006 | 5 | 43,001 | |||||||||||||
Issuance of ordinary shares, shares | 17,250,000 | |||||||||||||||
Share-based compensation | 13,704 | 13,704 | ||||||||||||||
Dividend declared | -90,000 | -90,000 | ||||||||||||||
Balance at Dec. 31, 2012 | -2,620 | 84 | 255,781 | 15,988 | -274,473 | |||||||||||
Balance, shares at Dec. 31, 2012 | 228,768,220 | |||||||||||||||
Net income | 106,054 | 106,054 | 106,054 | 95,179 | ||||||||||||
Other comprehensive income (loss) Foreign currency translation gain (loss) | -5,496 | -5,496 | ||||||||||||||
Issuance of ordinary shares from private placement | 91,994 | 3 | 91,991 | |||||||||||||
Issuance of ordinary shares from private placement, shares | 11,538,462 | |||||||||||||||
Issuance of ordinary shares from exercise of share options | 3,263 | 1 | 3,262 | |||||||||||||
Issuance of ordinary shares from exercise of share options, shares | 2,660,000 | |||||||||||||||
Issuance of ordinary shares from conversion of convertible note | 25,000 | 153,325 | 6 | 153,319 | ||||||||||||
Issuance of ordinary shares from conversion of convertible note, shares | 19,230,769 | |||||||||||||||
Issuance of ordinary shares | 455,339 | 20 | 455,319 | |||||||||||||
Issuance of ordinary shares, shares | 66,539,000 | |||||||||||||||
Share-based compensation | 7,561 | 7,561 | ||||||||||||||
Balance at Dec. 31, 2013 | 809,420 | 114 | 967,233 | 10,492 | -168,419 | |||||||||||
Balance, shares at Dec. 31, 2013 | 66,539,000 | 262,197,451 | ||||||||||||||
Net income | 25,313 | 157,049 | 157,049 | 25,313 | 157,049 | 12,670 | 78,604 | |||||||||
Other comprehensive income (loss) Foreign currency translation gain (loss) | 1,957 | 12,145 | 12,145 | |||||||||||||
Conversion of Class B to Class A ordinary shares | ||||||||||||||||
Conversion of Class B to Class A ordinary shares, shares | 165,562,922 | -165,562,922 | ||||||||||||||
Issuance of ordinary shares from exercise of share options | 49,086 | 7 | 49,079 | |||||||||||||
Issuance of ordinary shares from exercise of share options, shares | 22,742,660 | 22,742,660 | ||||||||||||||
Share-based compensation | 89,922 | 89,922 | ||||||||||||||
Balance at Dec. 31, 2014 | $180,128 | 1,117,622 | $20 | 121 | $178,293 | 1,106,234 | $3,648 | 22,637 | ($1,833) | -11,370 | ||||||
Balance, shares at Dec. 31, 2014 | 254,844,582 | 96,634,529 |
ORGANIZATION
ORGANIZATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
ORGANIZATION [Abstract] | |||||||||||||||||
ORGANIZATION | 1 | ORGANIZATION | |||||||||||||||
500.com Limited (the “Company”) was incorporated under the laws of the Cayman Islands on April 20, 2007 under the name Fine Success Limited, which was changed to 500wan.com on May 9, 2011 and further changed to the current name on October 9, 2013. | |||||||||||||||||
As of December 31, 2014, the Company has four wholly owned subsidiaries in British Virgin Islands, Hong Kong, the United States of America (‘”USA”) and the People's Republic of China (“PRC”), respectively and also consolidates three variable interest entities and four subsidiaries of variable interest entities (collectively “VIEs”), details of which are as follows: | |||||||||||||||||
Entity | Date of | Place of | Percentage | Principal | |||||||||||||
establishment | establishment | activities | |||||||||||||||
of | |||||||||||||||||
ownership | |||||||||||||||||
by the | |||||||||||||||||
Company | |||||||||||||||||
Subsidiaries | |||||||||||||||||
Fine Brand Limited (“BVI”) | 9-Feb-11 | British Virgin Islands | 100 | % | Investment Holding | ||||||||||||
500wan HK Limited (“500wan HK”) | 8-Mar-11 | Hong Kong | 100 | % | Investment Holding | ||||||||||||
500.com USA Corporation (“500.com USA”) | 21-Jul-14 | USA | 100 | % | Investment Holding | ||||||||||||
E-Sun Sky Computer (Shenzhen) Co., Ltd. (“E-Sun Sky Computer”) | 18-Jun-07 | PRC | 100 | % | Software Service | ||||||||||||
VIEs | |||||||||||||||||
Shenzhen E-Sun Network Co., Ltd. (“E-Sun Network”) | 7-Dec-99 | PRC | - | Online Lottery Service | |||||||||||||
Shenzhen Youlanguang Science and Technology Co., Ltd. (“Youlanguang | 16-Dec-08 | PRC | - | Online Lottery Service | |||||||||||||
Technology”) | |||||||||||||||||
Shenzhen Guangtiandi Science and Technology Co., Ltd. (“Guangtiandi Technology”) | 16-Dec-08 | PRC | - | Online Lottery Service | |||||||||||||
Shenzhen E-Sun Sky Network Technology Co., Ltd. (“E-Sun Sky Network”)* | 22-May-06 | PRC | - | Online Lottery Service | |||||||||||||
Shenzhen Wubai Zhifu Co.,Ltd (“500Fu”)** | 23-Apr-14 | PRC | - | Third party payment service | |||||||||||||
Lhasa Yicai Network Technology Co., Ltd. (“Lhasa Yicai”)** | 17-Oct-14 | PRC | - | Online Lottery Service | |||||||||||||
Beijing Baifengrun Science and Technology Co., Ltd. (“Baifengrun | 13-Jun-14 | PRC | - | Development, operation of | |||||||||||||
Technology”)*** | mobile phone games | ||||||||||||||||
* | A subsidiary of E-Sun Network | ||||||||||||||||
** | A subsidiary of E-Sun Sky Network | ||||||||||||||||
*** | A subsidiary of Guangtiandi Technology | ||||||||||||||||
The Company, its subsidiaries and VIEs are hereinafter collectively referred to as the “Group”. | |||||||||||||||||
The Group provides online lottery purchase services in the PRC. The Group's principal geographic market is in the PRC. The Company does not conduct any substantive operations on its own but instead conducts its business operations through E-Sun Sky Computer and the VIEs. | |||||||||||||||||
PRC laws and regulations prohibit or restrict foreign ownership of Internet businesses. To comply with these foreign ownership restrictions, the Group operates its websites and provides online lottery purchase services in the PRC through the VIEs. Prior to December 28, 2013, the Company entered into exclusive business cooperation agreements, power of attorney, equity interest pledge agreements, exclusive option agreements, financial support agreements and supplementary agreements to the exclusive option agreements (previously named as exclusive technical consulting and service agreements, power of attorney, equity pledge agreements, equity interest disposal agreements, financial support agreements, business operation agreements and intellectual properties license agreements prior to June 1, 2011) (the “Contractual Arrangements”), with the VIEs through E-Sun Sky Computer, which obligates E-Sun Sky Computer to absorb a majority of the expected losses from the activities of the VIEs' activities, and entitles E-Sun Sky Computer to receive a majority of residual returns from the VIEs. Through these aforementioned agreements, the Company maintains the ability to approve decisions made by the VIEs, and the ability to acquire the equity interests in the VIEs when permitted by the PRC laws via E-Sun Sky Computer. | |||||||||||||||||
As a result of the Contractual Arrangements, the Company consolidates the VIEs as required by Accounting Standards Codification (“ASC”) 810, “Consolidation”. Effective on January 1, 2010. The Company is required to continue to consolidate the VIEs under the new guidance in Accounting Standards Update (“ASU”) 2009-17 because the Company has been determined to 1) be the most closely associated with the VIEs and the subsidiary of E-Sun Network among the members of the related party group who share the power to direct the activities of the VIEs that most significantly impact their economic performance, and 2) has the obligation to absorb losses or the right to receive benefits of the VIEs that could potentially be significant to the VIEs. | |||||||||||||||||
On December 28, 2013, 500.com Limited agreed to provide unlimited financial support to the VIEs for their operations. In addition, pursuant to the power of attorney agreements entered into among 500.com Limited, E-Sun Sky Computer and the nominee shareholders of the VIEs, on December 28, 2013, the nominee shareholders of the VIEs assigned the rights to attend the VIEs' shareholders' meetings and to vote on all of the matters in the VIEs that require shareholders' approval, which was entrusted to E-Sun Sky Computer to 500.com Limited. As a result of the assignment of power of attorney from E-Sun Sky Computer to 500.com Limited and the provision of unlimited financial support from 500.com Limited to the VIEs, 500.com Limited has been determined to be most closely associated with the VIEs within the group of related parties and replaced E-Sun Sky Computer as the primary beneficiary of the VIEs on December 28, 2013. | |||||||||||||||||
The carrying amounts of the assets, liabilities, the results of operations and cash flows of the VIEs included in the Company's consolidated balance sheets, statements of comprehensive income and statements of cash flows are as follows: | |||||||||||||||||
As of | As of | As of | |||||||||||||||
December | December | December | |||||||||||||||
312,013 | 312,014 | 312,014 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 27,831 | 330,690 | 53,298 | ||||||||||||||
Restricted cash | 15,090 | 12,667 | 2,042 | ||||||||||||||
Short-term investments | - | 70,182 | 11,311 | ||||||||||||||
Accounts receivable | 50,778 | 48,550 | 7,825 | ||||||||||||||
Amounts due from intergroup companies | 105,169 | 10,484 | 1,690 | ||||||||||||||
Prepayments and other current assets | 92,395 | 149,256 | 24,055 | ||||||||||||||
Deferred tax assets, current portion | 15,287 | 39,068 | 6,297 | ||||||||||||||
Total current assets | 306,550 | 660,897 | 106,518 | ||||||||||||||
Non-current assets: | |||||||||||||||||
Property and equipment, net | 28,703 | 35,283 | 5,687 | ||||||||||||||
Intangible assets, net | 1,130 | 1,535 | 247 | ||||||||||||||
Deposits | 5,771 | 9,903 | 1,596 | ||||||||||||||
Long-term investments | - | 5,114 | 824 | ||||||||||||||
Deferred tax assets, non-current | 157 | 343 | 55 | ||||||||||||||
Other non-current assets | 2,738 | 1,794 | 289 | ||||||||||||||
Total non-current assets | 38,499 | 53,972 | 8,698 | ||||||||||||||
TOTAL ASSETS | 345,049 | 714,869 | 115,216 | ||||||||||||||
LIABILITIES | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Short-term loans | 12,802 | - | - | ||||||||||||||
Amounts due to intergroup companies | 3,470 | 140,856 | 22,702 | ||||||||||||||
Accrued payroll and welfare payable | 8,336 | 24,828 | 4,002 | ||||||||||||||
Accrued expenses and other current liabilities | 72,857 | 100,367 | 16,176 | ||||||||||||||
Income tax payable | 1,863 | 4,680 | 754 | ||||||||||||||
Total current liabilities | 99,328 | 270,731 | 43,634 | ||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long-term payables | 29,328 | 42,540 | 6,856 | ||||||||||||||
Total non-current liabilities | 29,328 | 42,540 | 6,856 | ||||||||||||||
TOTAL LIABILITIES | 128,656 | 313,271 | 50,490 | ||||||||||||||
For the years ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net revenues | 113,566 | 182,255 | 447,898 | 72,188 | |||||||||||||
Net income | 3,720 | 19,759 | 185,205 | 29,850 | |||||||||||||
For the years ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net cash generated from (used in) operating activities | (22,690 | ) | (157,646 | ) | 422,702 | 68,127 | |||||||||||
Net cash generated from (used in) investing activities | 1,587 | 156,033 | (107,041 | ) | (17,252 | ) | |||||||||||
Net cash generated from (used in) financing activities | (966 | ) | 13,052 | (12,802 | ) | (2,063 | ) | ||||||||||
There was no pledge or collateralization of the VIEs' assets. Creditors of the VIEs have no recourse to the general credit of the Company, which is the primary beneficiary of the VIEs. In addition, the Company has not provided any financial support to its VIEs as of December 31, 2014. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of presentation and use of estimates | ||||||||||
The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). | ||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group's consolidated financial statements include, but are not limited to, revenue recognition, allowance for doubtful accounts, useful lives of property and equipment, impairment of intangible assets, realization of deferred tax assets, uncertain income tax positions and share-based compensation. Actual results could materially differ from those estimates. | ||||||||||
Changes in Presentation of Comparative Information | ||||||||||
Certain comparative amounts have been reclassified to conform with the current year's presentation. | ||||||||||
Principles of consolidation | ||||||||||
The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries and VIEs in which it has a controlling financial interest. The results of the subsidiaries are consolidated from the date on which the Group obtained control and continue to be consolidated until the date that such control ceases. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. However, if the Company demonstrates its ability to control the VIEs through its rights to all the residual benefits of the VIEs and its obligation to fund losses of the VIEs then the entity is consolidated. All significant intercompany balances and transactions among the Company, its subsidiaries and VIEs have been eliminated on consolidation. | ||||||||||
Convenience translation | ||||||||||
Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 to RMB6.2046 on December 31, 2014 in the city of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. | ||||||||||
Foreign currency | ||||||||||
The functional currency of the Company, BVI, 500wan HK and 500.com USA is the US$. E-Sun Sky Computer and VIEs determined their functional currencies to be the RMB, which is their respective local currencies based on the criteria of ASC 830, “Foreign Currency Matters”. The Company uses the monthly average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders' equity. The Company uses the RMB as its reporting currency. | ||||||||||
Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing at the balance sheet date. Exchange gains and losses resulting from foreign currency transactions are included in the consolidated statements of comprehensive income. | ||||||||||
Cash and cash equivalents | ||||||||||
Cash and cash equivalents represent cash on hand and time deposits, which have original maturities of three months or less when purchased and which are unrestricted as to withdrawal and use. In addition, highly liquid investments which have original maturities of three months or less when purchased are classified as cash equivalents. | ||||||||||
Restricted cash | ||||||||||
Restricted cash represents cash held by banks which (i) were granted by the government and designated only for the purchase of fixed assets for certain approved projects, (ii) were drawn from short-term loans and designated only for marketing activities, and (iii) were pledged to financial institutions as collateral for the Group's bank loans. | ||||||||||
Time deposits | ||||||||||
Time deposits represent deposits in commercial banks with original maturities of greater than three months but less than a year. Interest income from time deposits is included in the consolidated statements of comprehensive income. During the years ended December 31, 2012, 2013 and 2014, the Group recorded interest income of RMB1,132, RMB2,058 and RMB17,009 (US$2,741) in the consolidated statements of comprehensive income respectively. | ||||||||||
Accounts receivables and allowance for doubtful accounts | ||||||||||
Accounts receivables are carried at original invoiced amount less an allowance for doubtful accounts when collection of the amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers factors such as customer circumstances or age of the receivable. Accounts receivable are written off after all collection efforts have ceased. Collateral is not typically required, nor is interest charged on accounts receivable. | ||||||||||
Accounts receivable due from employees | ||||||||||
Under the current prize payout scheme of national and provincial lottery products, prizes can only be claimed by natural persons who present the winning lottery tickets at the time of collection. Accounts receivable due from employees represents cash from winning tickets deposited into certain employees' personal bank accounts which will be transferred into the Group's bank accounts prior to allocation to the winner's accounts. The Group employs several measures to ensure that the employees' personal bank accounts are under the Group's control, for example, keeping a record of the account numbers, passwords, online login information and electronic banking keys of such personal accounts, and monitoring the account activities constantly. | ||||||||||
Property and equipment, net | ||||||||||
Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, as follows: | ||||||||||
Category | Estimated Useful Life | Estimated Residual | ||||||||
Electronic and office equipment | 3-5 years | 5 | % | |||||||
Motor vehicles | 10 years | 5-Feb | % | |||||||
Leasehold improvements | Shorter of lease term or the estimated useful lives of the assets | - | ||||||||
Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income. | ||||||||||
Intangible assets | ||||||||||
Intangible assets represent computer software, internet domain name and licensing agreement. These intangible assets are amortized on a straight line basis over their estimated useful lives of the respective assets, which are set out as follows: | ||||||||||
Category | Estimated Useful Life | |||||||||
Computer software | 3-10 years | |||||||||
Internet domain name | 10 years | |||||||||
Licensing agreement | Agreement term | |||||||||
Impairment of long-lived assets | ||||||||||
The Group evaluates its long-lived assets or asset group, including intangible assets, with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value. No impairment charge for the long-lived assets was recognized for any of the years presented. | ||||||||||
Short-term investments | ||||||||||
All highly liquid investments with original maturities of greater than three months, but less than 12 months, are classified as short-term investments in accordance with ASC 320-10 “Investments—Debt and Equity Securities”. In accordance with ASC 815 “Derivatives and Hedging”, the Group recognizes financial instruments or other contracts that have all the characteristics of a derivative on its balance sheet as either assets or liabilities, at fair value. Changes in the fair value of derivative financial instruments (“financial derivatives”) are either recognized periodically in earnings or in other comprehensive income depending on the use of the financial derivatives and whether it qualifies for hedge accounting. Changes in fair values of financial derivatives not qualified as hedges are reported in earnings. The estimated fair values of financial derivatives are determined at discrete points in time based on the relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques. | ||||||||||
Long term investments | ||||||||||
The Group's long-term investments consist of cost method investments. In accordance with ASC 325 “Investments-Other”, for investments in an investee over which the Group does not have significant influence and which do not have readily determinable fair value, the Group carries the investment at cost and only adjusts for other-than-temporary declines in fair value and distributions of earnings that exceed the Group's share of earnings since its investment. Management regularly evaluates the impairment of the cost method investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee's cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment's cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. | ||||||||||
Fair value measurements | ||||||||||
Financial instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, structured deposit (Note 4), and the derivative redemption feature (Note 10). As of December 31, 2013 and 2014, the carrying values of these financial instruments, other than the structured deposit, approximate their fair values due to their short-term maturities. The Group determined the fair value of the derivative redemption feature and the structured deposit with the assistance of an independent third party valuation firm. | ||||||||||
The Group applies ASC 820, “Fair Value Measurements and Disclosures”. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. | ||||||||||
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||
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. | |||||||||
ASC 820 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. | ||||||||||
Revenue recognition | ||||||||||
The Group's revenues are derived principally from online lottery purchase services. Revenue is recognized in accordance with ASC 605, “Revenue Recognition”, when all of the following four criteria are met: (i) persuasive evidence of an arrangement exists; (ii) the service has been rendered; (iii) the fees are fixed or determinable; and (iv) collectability is reasonably assured. | ||||||||||
Online lottery purchase services | ||||||||||
The Group earns service income for online lottery purchase services and revenues are generated from processing lottery purchase orders from end users (“Service Fee”). The Group receives purchase orders from end users through its online platforms, which include website and mobile applications, and processes the orders with the lottery administration centers. Service Fee is received from the lottery administration centers based on the pre-determined service fee rate and the total amount of the processed orders. Pursuant to ASC 605-45, “Principal Agent Considerations”, the Group records Service Fee on a net basis because the Group is not the primary obligor in the arrangement, but acts as an agent in providing such purchase services. | ||||||||||
Contingent service fee | ||||||||||
The Group is entitled to receive additional Service Fee from lottery administration centers when the total amounts of purchase orders reach an agreed threshold (“Contingent Service Fee”). As the Group is the agent in providing lottery purchase services, any Contingent Service Fee received is recorded as net revenue when the agreed thresholds are reached. Once the Group reaches the agreed thresholds, the Contingent Service Fee is then fixed and not subject to any adjustments. | ||||||||||
The Super VIP incentive | ||||||||||
Certain qualified end users (“Super VIP”) are entitled to receive incentives from the Group based on actual purchase amount of each transaction. As the Group does not receive an additional service or benefit from the Super VIP other than service fee earned from lottery administration centers by the Group from the transaction, the incentives are recognized as a reduction of revenue at each year end in accordance with ASC 605-50, “Customer Payments and Incentives”. | ||||||||||
Lottery pool purchase service | ||||||||||
Lottery pools involve individual end users purchasing a share in a pooled lottery outcome or group of outcomes with other end users. Through the lottery pool purchase service, an end user, an initiator, starts a lottery pool by specifying a range of parameters, such as the lottery portfolio, total purchase amount and payout ratio. | ||||||||||
The initiator is required to commit a minimum initial purchase amount when they initiate a pool, usually a certain percentage of the total purchase amount. Other end users then join the pool by agreeing to the parameters set by the initiator and committing on the purchase amount. When the total purchase amount as specified by the initiator is reached, the pooled lottery purchase order will be delivered in the manner specified by the initiator. When the actual purchase amount does not reach the total purchase amount as specified by the initiator but reaches a certain percentage of total purchase amount before the lottery pool purchase deadline, the Group contributes the remaining outstanding purchase amount (i.e., residual amount of lottery pool) in order to complete the lottery pool transaction. If the tickets win prizes from the lottery, the Group distributes the cash prizes to the end users based on the predetermined payout ratio, and the residual amount after distribution is retained by the Group. | ||||||||||
Since the Group contributes the residual amount of lottery pool in order to earn Service Fee from the purchase made by the lottery pool and does not provide any service to the lottery administration centers, the residual amount of lottery pool contributed by the Group paid to the lottery administration centers is recognized as a reduction of revenue. The residual amount of the lottery pool retained by the Group after distribution of the prizes are presented as “other operating income”, and recognized upon the announcement of lottery results, as the Group's principal activity is to provide lottery purchase services to end users. | ||||||||||
Cost of services | ||||||||||
Cost of services comprises employee costs, business tax and surcharges and other direct costs incurred in providing the purchase services. These costs are expensed as incurred. | ||||||||||
Business tax and surcharges | ||||||||||
Business tax and surcharges for the years ended December 31, 2012, 2013 and 2014 of RMB5,485, RMB7,526 and RMB8,198 (US$1,321) respectively, were recorded in cost of services in the consolidated statements of comprehensive income. The Group's online lottery purchase services are subject to business taxes, surcharges and cultural development fees totaling approximately 1.12%-2.97% of revenues before deduction for incentives to certain registered users and residual amount payment to complete the lottery pool purchase. | ||||||||||
Sales and marketing expenses | ||||||||||
Commission to certain internet companies | ||||||||||
The Group is responsible to pay certain internet companies a predetermined fixed percentage of the total purchase or deposit amount only if 1) public users enter the Group's website by redirection through these internet companies' website, and/or 2) public users have successfully purchased any lottery tickets or deposited certain amounts of cash into their accounts in the Group's website. The Group is responsible for providing online lottery purchase services when such public users enter the Group's website to purchase lottery tickets. Neither online lottery purchase services have been provided by these internet companies, nor have separate lottery service agreements been entered into between internet companies and the public users. Since these internet companies are providing similar services as those services that have been provided by the Group's internal sales personnel/agent, any relevant costs to be paid by the Group is treated as sales and marketing expenses. | ||||||||||
Advertising expenditure | ||||||||||
Advertising costs are expensed as incurred and are included in “sales and marketing expenses” in the consolidated statements of comprehensive income. Advertising expenses were approximately RMB12,143, RMB30,759 and RMB34,489 (US$5,559) for years ended December 31, 2012, 2013 and 2014, respectively. | ||||||||||
Sponsorship expenses | ||||||||||
The Group's sales and marketing expenses consist of payments under a sponsorship contract. Accounting for sponsorship payments is based upon specific contract provisions. | ||||||||||
Generally, sponsorship payments are expensed on a straight-line basis over the term of the contract after giving recognition to periodic performance provisions of the contract. Prepayments made under the contract are included in prepayments based on the period to which the prepayments apply. | ||||||||||
Awards granted to certain qualified end users | ||||||||||
All new end users are entitled to receive bonus credits from the Group upon the initial registration of their user accounts and all existing users are entitled to receive bonus credits from the Group by depositing a specified amount of cash into their user accounts during a marketing promotion period. The end users can only apply the bonus credits received against future lottery product purchases processed by the Group. The bonus credits are recognized as sales and marketing expenses when the bonus credits are granted to the end users. | ||||||||||
All new and existing end users are entitled to receive additional prize money for winning tickets from selected lotteries purchased through the Group during a marketing promotion period. The cost of the additional prize money is to be shared between the lottery administration centers and the Group at a predetermined percentage or funded entirely by the Group. As the Group does not receive an identifiable benefit in return for the consideration that is sufficiently separable from the lottery administration centers' purchase of lottery processing services from the Group, the additional prize money provided to the lottery administration center, are recognized as a reduction of revenue at each period end in accordance with ASC 605-50, “Customer Payments and Incentives”. | ||||||||||
Service development expenses | ||||||||||
Service development expenses consist primarily of personnel-related expenses incurred for the development of, enhancement to, and maintenance of the Group's website that either (i) did not meet the capitalization criteria in accordance with ASC 350, “Intangibles - Goodwill and other”; or (ii) met the capitalization criteria but the costs cannot be separated on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements. Service development expenses are recognized as expenses when incurred. | ||||||||||
Leases | ||||||||||
The Group leases certain office facilities under cancelable and non-cancelable operating leases, generally with an option to renew upon expiry of the lease term. In accordance with ASC 840, “Leases”, leases for a lessee are classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the properties estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. The Group had no capital leases for the years ended December 31, 2012, 2013 and 2014. | ||||||||||
Income taxes | ||||||||||
The Group follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. | ||||||||||
Interest and penalties arising from underpayment of income taxes are computed in accordance with the related PRC tax law and is classified in the consolidated statements of comprehensive income as income tax expense. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. | ||||||||||
In accordance with the provisions of ASC 740, “Income taxes” the Group recognizes in its financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement. The Group's estimated liability for unrecognized tax benefits which is included in the “long-term payables” account is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The outcome for a particular audit cannot be determined with certainty prior to the conclusion of the audit and, in some cases, appeal or litigation process. The actual benefits or liability ultimately realized may differ from the Group's estimates. As each audit is concluded, adjustments, if any, are recorded in the Group's financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. | ||||||||||
In conjunction with ASC 740, the Group also applied ASC 740-30, “Income Taxes: Other Considerations or Special Areas”, to account for the temporary differences arising from the undistributed earnings of the foreign subsidiaries. According to ASC 740-30, all undistributed earnings of a subsidiary shall be presumed to be transferred to the parent entity. Accordingly, the undistributed earnings of a subsidiary included in consolidated income shall be accounted for as a temporary difference and affect deferred tax expense unless the tax law provides a means by which the investment in a domestic subsidiary can be recovered tax free. | ||||||||||
Share-based compensation | ||||||||||
Share options granted to employees and the director | ||||||||||
Share options granted to employees and the director are accounted for under ASC 718, “Compensation - Stock compensation”. In accordance with ASC 718, the Group determines whether a share option should be classified and accounted for as a liability award or an equity award. All grants of share options to employees and the director classified as equity awards are recognized in the financial statements based on their grant date fair values. There were no liability awards granted during any of the periods stated herein. The Group recognizes compensation expense using the accelerated method for share options granted with graded vesting based on service conditions, provided that the amount of compensation expense recognized at any date is at least equal to the portion of the grant-date value of the share options that are vested at that date. | ||||||||||
Share options granted to employees and the director | ||||||||||
ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in the subsequent period if actual forfeitures differ from initial estimates. Forfeiture rate is estimated based on historical and future expectation of employee turnover rate and is adjusted to reflect future change in circumstances and facts, if any. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those share-based awards that are expected to vest. To the extent the Group revises this estimate in the future, the share-based payments could be materially impacted in the period of revision, as well as in following periods. | ||||||||||
The compensation costs associated with a modification of the terms of the award (“Modification Award”) 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 Modification Award over the fair value of the original award at the modification date. Therefore, in relation to the Modification Award, the Group recognizes share-based compensation over the vesting periods of the new options, which comprises, (1) the amortization of the incremental portion of share-based compensation over the remaining vesting term, and (2) any unrecognized compensation cost of original award, using either the original term or the new term, whichever is higher for each reporting period. | ||||||||||
Share options granted to non-employees | ||||||||||
The Group records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, “Equity-based payment to non-employees”. As the share options granted to non-employees were fully vested on the grant date, the related compensation expense was fully recognized in the consolidated statement of comprehensive income on the grant date. | ||||||||||
The Group, with the assistance of an independent valuation firm, determined the fair values of the share options recognized in the consolidated financial statements. The binomial option pricing model is applied in determining the estimated fair value of the share options granted to employees and non-employees. | ||||||||||
Deferred offering expenses | ||||||||||
Direct costs incurred by the Group attributable to its proposed public offerings of ordinary shares that have been deferred. Such costs, including legal and other professional fees, are recorded as deferred offering expenses in the consolidated balance sheets and will be charged against the gross proceeds received from such offerings. For the years ended December 31, 2012, 2013 and 2014, the Group expensed deferred offering expenses of RMB6,404, Nil, and RMB3,241 (US$522), respectively, in the consolidated statements of comprehensive income because the Group deemed the proposed public offerings to be aborted in accordance with ASC 340, “Other assets and deferred costs”. | ||||||||||
Earnings per share | ||||||||||
The Group computes earnings per Class A and Class B ordinary shares in accordance with ASC 260, “Earnings Per Share”, using the two class method. Under the provisions of ASC 260, basic net income per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potentially dilutive securities have been excluded from the computation of diluted net income per share if their inclusion is anti-dilutive. Potential ordinary shares consist of the incremental ordinary shares issuable upon the exercise of stock options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A ordinary shares assumes the conversion of Class B ordinary shares, while the diluted net income per share of Class B ordinary shares does not assume the conversion of those shares. | ||||||||||
The liquidation and dividend rights of the holders of the Group's Class A and Class B ordinary shares are identical, except with respect to voting. As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B ordinary shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B ordinary shares is assumed in the computation of the diluted net income per share of Class A ordinary shares, the undistributed earnings are equal to net income for that computation. | ||||||||||
For the purposes of calculating the Group's basic and diluted earnings per Class A and Class B ordinary shares, the ordinary shares relating to the options that were exercised are assumed to have been outstanding from the date of exercise of such options. | ||||||||||
Government grants | ||||||||||
Government grants are recognized when there is reasonable assurance that the attached conditions will be complied with. When the grant relates to an expense item, it is recognized in the consolidated statements of comprehensive income as operating income over the period necessary to match the grant on a systematic basis to the related costs. Where the grant relates to an asset acquisition, it is recognized as a deferred government grant and recognized in the consolidated statements of comprehensive income as operating income in proportion to the depreciation of the related assets. | ||||||||||
Recent accounting pronouncements | ||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for public business entities for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. | ||||||||||
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for public business entities with annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. | ||||||||||
In June 2014, the FASB issued ASU 2014-12, “Compensation—Stock Compensation”. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. |
CONCENTRATION_OF_RISKS
CONCENTRATION OF RISKS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
CONCENTRATION OF RISKS [Abstract] | |||||||||||||||||
CONCENTRATION OF RISKS | 3 | CONCENTRATION OF RISKS | |||||||||||||||
Concentration of credit risk | |||||||||||||||||
Assets that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, time deposits and accounts receivable. As of December 31, 2014, substantially all of the Group's cash and cash equivalents and time deposits were deposited in financial institutions located in the PRC, Hong Kong and USA, which management believes are of high credit quality. Accounts receivable are typically unsecured and are derived from commission earned from lottery administration centers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its lottery administration centers and its ongoing monitoring of outstanding balances. | |||||||||||||||||
Concentration of suppliers | |||||||||||||||||
Approximately 98.3%, 87.3% and 79.1% of total Service Fees were derived from three lottery administration centers for the years ended December 31, 2012, 2013 and 2014, respectively. The Service Fees received from the respective lottery administration centers represent net revenues recognized before the reduction of: (i) incentives paid to end users, (ii) the residual amount of lottery pool contributed by the Group and (iii) the cost of additional prize money to be shared between the lottery administration centers and the Group. The significance of the Service Fees received from the three lottery administration centers are as follows: | |||||||||||||||||
For the years ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Lottery administration center A | 111,533 | 169,474 | 260,096 | 41,920 | |||||||||||||
Lottery administration center B | 43,440 | 75,212 | 198,549 | 32,000 | |||||||||||||
Lottery administration center C | 13,653 | 45,231 | 121,628 | 19,603 | |||||||||||||
Concentration of serviced lottery products | |||||||||||||||||
Approximately 88.0%, 95.9% and 93.2% of total Service Fees were derived from five lottery products for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||||||||||||||
Current vulnerability due to certain other concentrations | |||||||||||||||||
The Group's operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 30 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC's political, economic and social conditions. There is also no guarantee that the PRC government's pursuit of economic reforms will be consistent or effective. | |||||||||||||||||
In October 2012, the Group was notified by China Sports Lottery Administration Center that the Group was one of the two entities that had been approved by the Ministry of Finance (“MOF”) to conduct online sales of sports lottery products in PRC on behalf of China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in PRC, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the MOF for official commencement of online lottery sales in the PRC. However, since the operation of online sports lottery sales services by China Sports Lottery Administration Center itself is in a pilot phase and is subject to further approval by the MOF, the Group's operation of online sales of sports lottery products may be subject to suspension if China Sports Lottery Administration Center fails to obtain such further approval from the MOF. | |||||||||||||||||
On January 15, 2015, the MOF, the Ministry of Civil Affairs and the General Administration of Sports of the People's Republic of China jointly promulgated the Notice on Issues related to the Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales (the “Self-Inspection Notice”), as a further step to regulate the lottery market in PRC and sanction unauthorized online lottery sales. On February 28, 2015, all sports lottery administration centers temporarily suspended online purchase orders for lottery products in response to the Self-Inspection Notice. Additional details are set out in Note 22 - Recent regulations on lottery services industry and online lottery sales. | |||||||||||||||||
The Group transacts the majority of its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People's Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers' invoices, shipping documents and signed contracts. Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
INVESTMENTS [Abstract] | |||||||||||||||||||||||||
INVESTMENTS | 4 | INVESTMENTS | |||||||||||||||||||||||
Short-term Investments | |||||||||||||||||||||||||
Short-term Investments consist of the following: | |||||||||||||||||||||||||
Short-term investments of the Group comprised of a structured deposit investment with an embedded derivative instrument (“Structured deposit”) that was not separately bifurcated. The Structured deposit was carried at fair value. | |||||||||||||||||||||||||
As of December 31,2014 | |||||||||||||||||||||||||
Original cost | Gross | Gross | Provision | Fair | Fair | ||||||||||||||||||||
unrealized | unrealized | for | value | value | |||||||||||||||||||||
gains | losses | decline | |||||||||||||||||||||||
in value | |||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Structured deposit | 71,306 | - | (1,124 | ) | - | 70,182 | 11,311 | ||||||||||||||||||
During the year ended December 31, 2014, the change in fair value of the Structured deposit of RMB1,124 (US$181) was recorded as "Changes in fair value of the structured deposit” in the consolidated statements of comprehensive income. | |||||||||||||||||||||||||
Long-term Investments | |||||||||||||||||||||||||
Long-term investments consisted of the following: | |||||||||||||||||||||||||
As of | As of | As of | |||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2014 | 2014 | |||||||||||||||||||||||
RMB | RMB | US$ | |||||||||||||||||||||||
Cost Method Investments | |||||||||||||||||||||||||
Private companies | - | 5,114 | 824 | ||||||||||||||||||||||
Limited partnerships | - | 1,538 | 248 | ||||||||||||||||||||||
- | 6,652 | 1,072 | |||||||||||||||||||||||
Cost method investments | |||||||||||||||||||||||||
Private companies | |||||||||||||||||||||||||
On January 31, 2014, the Group acquired 20% of the share capital of Beijing Huanlelingdang Technology Co., Ltd (“Huanlelingdang”), a non-listed company, at a consideration of RMB5,000(US$806). On April 23, the Group acquired 19% of the share capital of Shenzhen Hewei Technology Co., Ltd (“Hewei”), a non-listed company, at a consideration of RMB114(US$18). The investments in Huanlelingdang and Hewei were classified as cost method investments as the Group does not have significant influence over Huanlelingdang and Hewei. No impairment on the investment in Huanlelingdang and Hewei were recognized for the year ended December 31, 2014. Additionally, the Group determined that it is not practicable to estimate their fair values for disclosure purposes. | |||||||||||||||||||||||||
Limited partnerships | |||||||||||||||||||||||||
On June 12, 2014, the Group and Danhua Capital L.P (“Danhua”) entered into a subscription agreement, whereby the Group agreed to purchase a US$1,000 limited partnership interest in Danhua's fund (the “Fund”). As of December 31, 2014, the Group transferred US$250 to the Fund. The Group's unfunded commitment to the Fund is US$750 as of December 31, 2014. | |||||||||||||||||||||||||
The Fund's investment strategy is primarily to invest in emerging companies operating in the USA and PRC. The Fund's investments are focused in the technology, media and telecommunications sectors. The Fund is scheduled to operate till November 15, 2021, unless terminated sooner or extended in accordance with the amended and restated limited partnership agreement. | |||||||||||||||||||||||||
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCOUNTS RECEIVABLE [Abstract] | |||||||||||||
ACCOUNTS RECEIVABLE | 5 | ACCOUNTS RECEIVABLE | |||||||||||
Accounts receivable and the related allowance for doubtful accounts are summarized as follows: | |||||||||||||
As of | As of | As of | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Accounts receivable | 62,522 | 74,445 | 11,998 | ||||||||||
Less: Allowance for doubtful accounts | - | - | - | ||||||||||
Accounts receivable, net | 62,522 | 74,445 | 11,998 | ||||||||||
PREPAYMENTS_OTHER_CURRENT_ASSE
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | |||||||||||||
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS | 6 | PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS | |||||||||||
Prepayments and other current assets consist of the following: | |||||||||||||
As of | As of | As of | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Prepayments | 824 | 371 | 60 | ||||||||||
Deposits for future lottery ticket purchase* | 55,911 | 89,417 | 14,411 | ||||||||||
Receivables from third party payment service providers | 12,416 | 17,705 | 2,854 | ||||||||||
Receivables from lottery administration centers for winnings | 15,880 | 2,749 | 443 | ||||||||||
Interest receivables | - | 6,441 | 1,038 | ||||||||||
Deposit for business acquisition** | - | 20,000 | 3,223 | ||||||||||
Deferred sponsorship and advertising expenses | 1,757 | 10,324 | 1,664 | ||||||||||
Others | 7,485 | 10,880 | 1,754 | ||||||||||
94,273 | 157,887 | 25,447 | |||||||||||
* | Deposits for future lottery ticket purchase represent cash paid in advance by the Group to lottery administration centers for the purchase of lottery tickets. | ||||||||||||
** | Deposit for business acquisition represents cash paid in advance by the Group for a potential business acquisition. The deposit was subsequently returned to the Group in January 2015, as the deal was cancelled. | ||||||||||||
Deposits consist of the following: | |||||||||||||
As of | As of | As of | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Deposits for lottery ticket equipment and office leases | 5,939 | 10,071 | 1,623 | ||||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||
PROPERTY AND EQUIPMENT, NET | 7 | PROPERTY AND EQUIPMENT, NET | |||||||||||
Property and equipment consist of the following: | |||||||||||||
As of | As of | As of | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Electronics and office equipment | 23,349 | 30,972 | 4,992 | ||||||||||
Motor vehicles | 4,557 | 9,642 | 1,554 | ||||||||||
Leasehold improvements | 25,748 | 26,391 | 4,253 | ||||||||||
Property and equipment, cost | 53,654 | 67,005 | 10,799 | ||||||||||
Less: Accumulated depreciation | (17,441 | ) | (25,930 | ) | (4,179 | ) | |||||||
Property and equipment, net | 36,213 | 41,075 | 6,620 | ||||||||||
Depreciation expenses were approximately RMB5,167, RMB7,847 and RMB8,653 (US$1,395) for the years ended December 31, 2012, 2013 and 2014, respectively. | |||||||||||||
INTANGIBLE_ASSETS_NET
INTANGIBLE ASSETS, NET | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INTANGIBLE ASSETS, NET [Abstract] | |||||||||||||
INTANGIBLE ASSETS, NET | 8 | INTANGIBLE ASSETS, NET | |||||||||||
Intangible assets consist of the following: | |||||||||||||
As of | As of | As of | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Cost: | |||||||||||||
Computer software | 3,975 | 4,785 | 771 | ||||||||||
License agreement | - | 800 | 129 | ||||||||||
Internet domain name | 658 | 658 | 106 | ||||||||||
4,633 | 6,243 | 1,006 | |||||||||||
Accumulated amortization: | |||||||||||||
Computer software | (1,020 | ) | (1,787 | ) | (288 | ) | |||||||
License agreement | - | (800 | ) | (129 | ) | ||||||||
Internet domain name | (236 | ) | (302 | ) | (48 | ) | |||||||
(1,256 | ) | (2,889 | ) | (465 | ) | ||||||||
Intangible assets, net | 3,377 | 3,354 | 541 | ||||||||||
Amortization expenses were approximately RMB353, RMB659 and RMB1,634 (US$263) for the years ended December 31, 2012, 2013 and 2014, respectively. Annual estimated amortization expense for each of the five succeeding years is as follows: | |||||||||||||
RMB | US$ | ||||||||||||
2015 | 840 | 135 | |||||||||||
2016 | 470 | 76 | |||||||||||
2017 | 403 | 65 | |||||||||||
2018 | 347 | 56 | |||||||||||
2019 and thereafter | 1,294 | 209 | |||||||||||
3,354 | 541 | ||||||||||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||||||
As of | As of | As of | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Advance from end users | 40,578 | 66,679 | 10,747 | ||||||||||
Business tax and other taxes payable | 4,031 | 4,360 | 703 | ||||||||||
Deferred government grant | 17,925 | 14,016 | 2,259 | ||||||||||
Professional fees payable | 15,442 | 11,323 | 1,825 | ||||||||||
Promotional events payables | 3,752 | 10,869 | 1,752 | ||||||||||
Advertising and sponsorship payable | 902 | 2,267 | 365 | ||||||||||
Others | 5,616 | 8,478 | 1,365 | ||||||||||
88,246 | 117,992 | 19,016 | |||||||||||
Advance from end users represents 1) payments received by the Group in advance from the end users prior to the purchase of lottery tickets, and 2) prize distribution made by the Group to the winning end users' registered account. |
CONVERTIBLE_NOTE
CONVERTIBLE NOTE | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
CONVERTIBLE NOTE [Abstract] | |||||
CONVERTIBLE NOTE | 10 | CONVERTIBLE NOTE | |||
On October 21, 2013, pursuant to a convertible note purchase agreement, the Company issued a convertible note due June 30, 2014 in the aggregate principal amount of US$20,000 to Sequoia Capital 2010 CGF Holdco, Ltd., or “Sequoia”. The total principal amount of US$20,000 was received in October 2013. The convertible note bore interest at 10% per annum, uncompounded and computed on the basis of the actual number of days elapsed, or 13% per annum upon an event of default, uncompounded and computed on the basis of the actual number of days elapsed. | |||||
The convertible note was automatically converted into the number of Class B ordinary shares equivalent to the outstanding amount of the convertible note divided by the applicable conversion price immediately upon the completion of the Group's IPO. The applicable conversion price was equal to 80% of the per share issuance price of the Class A ordinary shares issued for the Group's IPO. In the event of automatic conversion triggered by the IPO, the convertible note shall be deemed interest free between the date of issuance and the date of conversion. | |||||
The redemption feature meets the definition of a derivative and is bifurcated from the convertible note and accounted for in accordance with ASC 815, “Derivatives and Hedging”. The change in fair value of the embedded derivative is recorded in earnings. | |||||
Upon completion of the IPO, the conversion of the convertible note into US$25,000 of 19,230,769 Class B ordinary shares was accounted for as an extinguishment in accordance with ASC 405, “Liabilities”. The sum of: (i) the interest expense arising from the host debt instrument of RMB3,933, (ii) change in fair value of the bifurcated redemption feature RMB26,809, and (iii) extinguishment gain or loss (Nil), equaled to RMB30,742, which represented the incremental value the holder receives upon the conversion. | |||||
In accordance with ASC 820, the Group measures the fair value of the derivative redemption feature using an income approach based on inputs that are unobservable (Level 3) in the market. | |||||
A reconciliation of the derivative redemption feature measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is presented below: | |||||
Derivative | |||||
redemption | |||||
feature | |||||
RMB | |||||
Balance as of December 31, 2012 | - | ||||
Fair value of the derivative redemption feature on issuance date | 22,355 | ||||
Change in fair value of the derivative redemption feature | 26,809 | ||||
Settlement of the derivate redemption feature upon IPO | (49,164 | ) | |||
Balance as of December 31, 2013 | - | ||||
The change in fair value of the derivative redemption feature for the year ended December 31, 2013 was recorded as "Changes in fair value of the derivative component of the convertible note” in the consolidated statements of comprehensive income. | |||||
No convertible note was issued during the year ended December 31, 2014. | |||||
ACCUMULATED_DEFICIT
ACCUMULATED DEFICIT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCUMULATED DEFICIT [Abstract] | |||||||||||||
ACCUMULATED DEFICIT | 11 | ACCUMULATED DEFICIT | |||||||||||
The Company's ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group's PRC subsidiary only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company's PRC subsidiary. | |||||||||||||
In accordance with the Regulations on Enterprises with Foreign Investment of China and its Articles of Association, the Company's PRC subsidiary, E-Sun Sky Computer, being a foreign-invested enterprise established in the PRC, is required to provide for certain statutory reserves, namely the general reserve fund, enterprise expansion fund and staff welfare and bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. E-Sun Sky Computer is required to allocate at least 10% of its after-tax profits to the general reserve fund until such fund has reached 50% of its registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors of the E-Sun Sky Computer. | |||||||||||||
In accordance with the China Company Laws, the Company's VIEs are PRC domestic companies (i.e. E-Sun Network, E-Sun Sky Network, Youlanguang Technology, Guangtiandi Technology, 500Fu, Lhasa Yicai and Baifengrun Technology), and they must make appropriations from their after-tax profits as reported in their PRC statutory accounts to non-distributable reserve funds, namely statutory surplus fund, statutory public welfare fund and discretionary surplus fund. The VIEs are required to allocate at least 10% of their after-tax profits to the statutory surplus fund until such fund has reached 50% of their respective registered capital. Appropriation to discretionary surplus is made at the discretion of each individual VIE. | |||||||||||||
The general reserve fund and statutory surplus fund are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company. The staff welfare and bonus fund and statutory public welfare fund are restricted to the capital expenditures for the collective welfare of employees. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor are they available for distribution except under liquidation. | |||||||||||||
As of | As of | As of | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
PRC statutory reserved funds | 20,849 | 33,754 | 5,440 | ||||||||||
Unreserved accumulated deficit | (189,268 | ) | (45,124 | ) | (7,273 | ) | |||||||
(168,419 | ) | (11,370 | ) | (1,833 | ) | ||||||||
Under PRC laws and regulations, there are restrictions on the Company's PRC subsidiary and VIEs with respect to transferring certain of their net assets to the Company either in the form dividends, loans, or advances. Amounts restricted include paid-in capital, statutory reserve funds and retained earnings of the Company's PRC subsidiary and VIEs, as determined pursuant to PRC generally accepted accounting principles, totaling approximately RMB636,146 (US$102,528) as of December 31, 2014. Therefore in accordance with Rules 504 and 4.08(e)(3) of Regulation S-X, the condensed parent company only financial statements as of December 31, 2013 and 2014 and for each of the three years in the period ended December 31, 2014 are disclosed in Note 23. | |||||||||||||
Furthermore, cash transfers from the Company's PRC subsidiary to its subsidiaries outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiary and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. | |||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||
INCOME TAXES | 12 | INCOME TAXES | |||||||||||||||
Cayman Islands | |||||||||||||||||
Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. | |||||||||||||||||
USA | |||||||||||||||||
500.com USA is incorporated in the USA and does not conduct any substantive operations of its own. No provision for USA income tax has been made in the financial statements as 500.com USA was established in July 2014 and had no assessable income for the year ended December 31, 2014. | |||||||||||||||||
British Virgin Islands | |||||||||||||||||
Under the current laws of the British Virgin Islands, BVI is not subject to tax on income or capital gains. | |||||||||||||||||
Hong Kong | |||||||||||||||||
Under the current laws, profits tax in Hong Kong is generally assessed at the rate of 16.5% of taxable income. | |||||||||||||||||
PRC | |||||||||||||||||
A new enterprise income tax law (the “EIT Law”) in the PRC was enacted and became effective on January 1, 2008. The EIT Law applies a uniform 25% enterprise income tax (“EIT”) rate to both foreign invested enterprises and domestic enterprises. Accordingly, Youlanguang Technology and E-Sun Network are subject to the EIT rate of 25% for the three years ended December 31, 2014. The newly established VIEs, 500Fu and Baifengrun Technology, are also subject to the EIT rate of 25% for the year ended December 31, 2014. | |||||||||||||||||
E-Sun Sky Network, which qualified as a “Software Enterprise”, was granted an exemption of EIT for its first two years of operations and a half reduction in tax rate for the succeeding three years commencing from the first profit-making year. 2006 was the first year of EIT exemption for E-Sun Sky Network. In October 2011, E-Sun Sky Network obtained the certificate of “High-tech Enterprise” and was granted a preferential income tax rate of 15% for the three years commencing from 2011. In September 2014, E-Sun Sky Network renewed the certificate of “High-tech Enterprise” and was still applicable to the preferential income tax rate of 15% for the three years ended December 31, 2016. In 2014, E-Sun Sky Network obtained the certificate of “Key Software Enterprise” and therefore was granted a preferential income tax rate of 10% for the two years ended December 31, 2014. Thus, E-Sun Sky Network complied with the lower preferential tax rate of 10% in 2013 and 2014. | |||||||||||||||||
In March 2011, E-Sun Sky Computer obtained the certificate of “Software Enterprise”, and was granted an exemption of EIT for its first two years of operations and a half reduction in tax rate for the succeeding three years commencing from the first profit-making year. 2011 was the first year of EIT exemption for E-Sun Sky Computer. E-Sun Sky Computer is subject to EIT at the rate of 0%, 12.5% and 12.5% in 2012, 2013 and 2014, respectively. | |||||||||||||||||
In June 2013, Guangtiandi Technology obtained the certificate of “Software Enterprise”, and was granted an exemption of EIT for its first two years of operations and a half reduction in tax rate for the succeeding three years commencing from the first profit-making year. 2014 was the second year of EIT exemption for Guangtiandi Technology. Guangtiandi Technology is subject to EIT at the rate of 25%, 0% and 0% in 2012, 2013 and 2014, respectively. | |||||||||||||||||
Lhasa Yicai was established in Tibet in 2014 and qualified as a “Western Area Encouraged Industry”. According to local government, policy qualified entities were granted a preferential tax rate of 15% from January 1, 2011 to December 31, 2020. Therefore, Lhasa Yicai is entitled to a preferential tax rate of 15% for the year ended December 31, 2014. | |||||||||||||||||
Income (loss) before income taxes consists of: | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Cayman Islands | (2,842 | ) | (32,227 | ) | 157,049 | 25,313 | |||||||||||
British Virgin Islands | (22 | ) | (12 | ) | (4 | ) | (1 | ) | |||||||||
Hong Kong | (159 | ) | (297 | ) | (838 | ) | (135 | ) | |||||||||
PRC | 25,267 | 62,296 | 8,829 | 1,423 | |||||||||||||
22,244 | 29,760 | 165,036 | 26,600 | ||||||||||||||
The current and deferred components of the income tax expense appearing in the consolidated statements of comprehensive income are as follows: | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Current tax expense | (10,856 | ) | (20,839 | ) | (31,918 | ) | (5,144 | ) | |||||||||
Deferred tax benefit (expense) | (7,145 | ) | 97,133 | 23,931 | 3,857 | ||||||||||||
Income tax benefit (expense) | (18,001 | ) | 76,294 | (7,987 | ) | (1,287 | ) | ||||||||||
The reconciliation of tax computed by applying the statutory income tax rate applicable to PRC operations to income tax expense is as follows: | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Income before income taxes | 22,244 | 29,760 | 165,036 | 26,600 | |||||||||||||
Income tax computed at applicable tax rates (25%) | 5,561 | 7,440 | 41,259 | 6,650 | |||||||||||||
Effect of different tax rates in different jurisdictions | 755 | 8,134 | 1,313 | 212 | |||||||||||||
Non-deductible expenses | 8,603 | 15,810 | 28,103 | 4,529 | |||||||||||||
Effect of tax holiday | (8,449 | ) | (942 | ) | (16,170 | ) | (2,606 | ) | |||||||||
Effect of tax rate changes | (3,076 | ) | (15,581 | ) | (38,747 | ) | (6,245 | ) | |||||||||
Change in valuation allowance | 1,621 | (1,900 | ) | 18 | 3 | ||||||||||||
Changes in interest and penalties on unrecognized tax benefits | 544 | 2,222 | (349 | ) | (56 | ) | |||||||||||
Effect of EIT reversal for previous years | - | (2,741 | ) | (7,758 | ) | (1,250 | ) | ||||||||||
Outside basis differences | 11,919 | (88,796 | ) | - | |||||||||||||
Others | 523 | 60 | 318 | 50 | |||||||||||||
18,001 | (76,294 | ) | 7,987 | 1,287 | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Balance at beginning of year | 4,315 | 11,577 | 27,405 | 4,417 | |||||||||||||
Increase relating to current year tax positions | 7,464 | 18,843 | 18,014 | 2,903 | |||||||||||||
Decrease relating to prior year tax positions | - | (2,955 | ) | (5,202 | ) | (838 | ) | ||||||||||
Decrease relating to expiration of applicable statute of limitations | (202 | ) | (60 | ) | (1,316 | ) | (212 | ) | |||||||||
Balance at end of year | 11,577 | 27,405 | 38,901 | 6,270 | |||||||||||||
At December 31, 2012, 2013 and 2014, there are RMB6,024, RMB14,342 and RMB13,067 (US$2,106) of unrecognized tax benefits that would affect the annual effective tax rate if recognized. The unrecognized tax benefits mainly related to non-deductible expenses. It is possible that the amount of unrecognized tax benefits will change in the next 12 months, pending factors such as changes in PRC tax law or administrative practices and precedents, or tax authority inquiries. An estimate of the change cannot be reasonably made. | |||||||||||||||||
The Group recognizes interest and penalties accrued related to unrecognized tax benefits in taxation expenses. During the years ended December 31, 2012, 2013 and 2014, the Group recognized approximately RMB544, RMB2,463 and RMB2,119 (US$342) and reversed approximately nil, RMB241 and RMB2,469 (US$398) in interest and penalties. The Group had accrued approximately RMB1,091, RMB3,313 and RMB2,963 (US$478) for the payment of interest and penalties as of December 31, 2012, 2013 and 2014, respectively. In general, the PRC tax authorities have up to three to five years to conduct examinations of the Group's tax filings. As of December 31, 2014, the PRC subsidiaries 2011-2014 tax returns remain open to examination. | |||||||||||||||||
The aggregate amount and per share effect of tax holidays are as follows: | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
The aggregate amount | 8,449 | 942 | 16,170 | 2,606 | |||||||||||||
The aggregate effect on basic and diluted earnings per share for Class A and Class B ordinary shares outstanding | |||||||||||||||||
Basic | 0.04 | - | 0.05 | 0.01 | |||||||||||||
Diluted | 0.04 | - | 0.05 | 0.01 | |||||||||||||
The components of deferred taxes are as follows: | |||||||||||||||||
2013 | 2014 | 2014 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
Deferred tax assets, current portion | |||||||||||||||||
Accrued payroll and welfare payable | 1,630 | 3,631 | 585 | ||||||||||||||
Advertising expenditure deductible in future years | 11,675 | 33,466 | 5,393 | ||||||||||||||
Deferred government grants | 2,813 | 2,597 | 419 | ||||||||||||||
Changes in fair value of the Structured deposit | - | 169 | 27 | ||||||||||||||
Less: valuation allowance | (102 | ) | (102 | ) | (16 | ) | |||||||||||
Total deferred tax assets, current portion | 16,016 | 39,761 | 6,408 | ||||||||||||||
Deferred tax assets, non-current portion | |||||||||||||||||
Net operating losses (“NOLs”) | 1,234 | 1,438 | 231 | ||||||||||||||
Less: valuation allowance | (1,077 | ) | (1,095 | ) | (176 | ) | |||||||||||
Total deferred tax assets, non-current portion | 157 | 343 | 55 | ||||||||||||||
The Group records a valuation allowance on its deferred tax assets that is sufficient to reduce the deferred tax assets to an amount that is more likely than not to be realized. Future reversal of the valuation allowance will be recognized either when the benefit is realized or when it has been determined that it is more likely than not that the benefit in future earnings will be realized. | |||||||||||||||||
As of December 31, 2014, the Group had NOLs of approximately RMB5,754 (US$927) from several of its VIEs, which can be carried forward to offset future net profit for income tax purposes. The NOLs as of December 31, 2014 will expire in years 2015 to 2019 if not utilized. | |||||||||||||||||
Reversal of deferred tax liabilities arising from outside basis differences | |||||||||||||||||
Deferred tax liabilities arising from outside basis differences of the Company's investments in subsidiaries are considered under ASC 740-30. The deferred tax expense relating to outside basis differences arises from (i) aggregate undistributed earnings and share capital of the VIEs that are available for distribution to E-Sun Sky Computer, a PRC tax resident company, and (ii) aggregate undistributed earnings of the foreign subsidiaries that are available for distribution to the Company. | |||||||||||||||||
On December 6, 2012, the Company declared the distribution of dividends totaling RMB90,000 to all ordinary shareholders of the Company. Upon the declaration of this distribution of dividends, the Company's management ceased indefinite reinvestment plan on the undistributed earnings of the PRC subsidiaries. As a result, the Company recorded a deferred tax liability relating to the aggregate undistributed earnings of the PRC subsidiaries that are available for distribution to the Company. | |||||||||||||||||
On December 28, 2013, the Company agreed to provide unlimited financial support to the VIEs and replaced E-Sun Sky Computer as the primary beneficiary of the VIEs. In addition, management has asserted to indefinitely reinvest the undistributed earnings of the subsidiaries located in the PRC. As the Company is indefinitely reinvesting the undistributed earnings of the Group's foreign subsidiaries in the PRC, the deferred tax liabilities (i.e. RMB88,796), arising from the aggregate outside basis differences of the foreign subsidiaries and the VIEs were reversed during the year ended December 31, 2013. | |||||||||||||||||
The cumulative amount of the temporary differences in respect of investments in foreign subsidiaries is RMB304,191 and RMB542,027 (US$87,359) as of December 31, 2013 and 2014, respectively. Upon repatriation of the foreign subsidiaries and the VIEs' earnings, in the form of dividends or otherwise, the Company would be subject to various PRC income taxes including withholding income tax. Determination of the amount of unrecognized deferred US income tax liability is not practicable. |
SHORTTERM_LOANS
SHORT-TERM LOANS | 12 Months Ended | |
Dec. 31, 2014 | ||
SHORT-TERM LOANS [Abstract] | ||
SHORT-TERM LOANS | 13 | SHORT-TERM LOANS |
The short-term loans outstanding as of December 31, 2013 represents RMB denominated loans of an aggregate amount of RMB18,166 obtained from a financial institution in the PRC, for working capital purposes. The loans have a fixed interest rate of 7.32% per annum and a term of twelve months. The loans are guaranteed by E-Sun Sky Computer, Mr. Man San Law (i.e. Chief Executive Officer) and Ms. Ping Yuan (i.e. shareholder). As of December 31, 2013, the Group had repaid RMB5,364. The remaining balance of RMB12,802 was repaid in full in 2014. | ||
EMPLOYEE_DEFINED_CONTRIBUTION_
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended | |
Dec. 31, 2014 | ||
EMPLOYEE DEFINED CONTRIBUTION PLAN [Abstract] | ||
EMPLOYEE DEFINED CONTRIBUTION PLAN | 14 | EMPLOYEE DEFINED CONTRIBUTION PLAN |
Full time employees of the Group in PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiary and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees' salaries. The Group has no legal obligation for the benefits beyond the contributions made. Such employee benefits, which were expensed as incurred, amounted to approximately RMB6,595, RMB 8,848 and RMB10,042 (US$1,619) for the years ended December 31, 2012, 2013 and 2014, respectively. | ||
SHAREBASED_PAYMENT
SHARE-BASED PAYMENT | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SHARE-BASED PAYMENT [Abstract] | |||||||||||||||||||||
SHARE-BASED PAYMENT | 15 | SHARE-BASED PAYMENT | |||||||||||||||||||
On March 28, 2011, the shareholders and board of directors of the Company approved the 2011 Share Incentive Plan (the “Plan”). The Plan provides for the grant of options, restricted shares and other share-based awards. These options were granted with exercise prices denominated in US$, which is the functional currency of the Company. The board of directors has authorized under the Plan the issuance of up to 12% of the Company's issued and outstanding ordinary shares from time to time, on an as-exercised and fully diluted basis, upon exercise of awards granted under the Plan. The maximum term of any issued share option is ten years from the grant date. | |||||||||||||||||||||
On April 8, 2011, the Company granted 13,864,000 share options to a director and employees with an exercise price of US$0.40 per share. For these awards, 5,506,600 options will be vested upon the first anniversary of the grant date, 5,225,800 options will be vested upon the second anniversary of the grant date, 1,565,800 options will be vested upon the third anniversary of the grant date, and 1,565,800 options will be vested upon the fourth anniversary of the grant date. | |||||||||||||||||||||
On April 8, 2011, the Company granted 5,003,980 and 12,600,000 share options to another director and a consultant with an exercise price of US$0.40 per share, and all were vested on the grant date. | |||||||||||||||||||||
On October 22, 2013, the Company granted 2,660,000 share options to employees with an exercise price of US$0.40 per share. For these awards, 600,000 options will be vested on 180 days after the grant date, 1,620,000 options will be vested upon the first anniversary of the grant date, 220,000 options will be vested upon the second anniversary of the grant date, and 220,000 options will be vested upon the third anniversary of the grant date. | |||||||||||||||||||||
On June 19, 2014, the Company granted 2,000,000 options to directors and 32,561,800 options to employees, with an exercise price of US$3.232 per share (US$32.32 per ADS). For awards to directors, 666,690 options will be vested on November 22, 2014, 666,690 options will be vested on November 22, 2015, and 666,620 options will be vested on November 22, 2016. For awards to employees, 5,437,820 options will be vested upon the first anniversary of the grant date, 10,843,080 options will be vested upon the second anniversary of the grant date, and 16,280,900 options will be vested upon the third anniversary of the grant date. | |||||||||||||||||||||
A summary of share option activity and related information for the year ended December 31, 2014 is as follows: | |||||||||||||||||||||
Share options granted to employees and directors | |||||||||||||||||||||
Number of | Weighted | Weighted | Weighted | Aggregated | |||||||||||||||||
option | average | average | average | intrinsic | |||||||||||||||||
exercise | grant date | remaining | value | ||||||||||||||||||
price | fair value per | contractual | |||||||||||||||||||
share | year | ||||||||||||||||||||
US$ | US$ | (Years) | US$'000 | ||||||||||||||||||
Outstanding, January 1, 2014 | 18,719,980 | 0.28 | 0.43 | 7.63 | |||||||||||||||||
Granted | 34,561,800 | 3.23 | 1.35 | ||||||||||||||||||
Exercised | (10,142,660 | ) | 0.3 | 0.34 | |||||||||||||||||
Outstanding, December 31, 2014 | 43,139,120 | 2.64 | 1.19 | 4.4 | 12,672 | ||||||||||||||||
Vested and expected to vest at December 31, 2014 | 42,756,440 | 2.66 | 1.2 | 4.38 | 12,085 | ||||||||||||||||
Exercisable at December 31, 2014 | 7,238,210 | 0.54 | 0.62 | 6.58 | 9,681 | ||||||||||||||||
Share options granted to consultants | |||||||||||||||||||||
Number of | Weighted | Weighted | Weighted | Aggregated | |||||||||||||||||
option | average | average | average | intrinsic | |||||||||||||||||
exercise | grant date | remaining | value | ||||||||||||||||||
price | fair value per | contractual | |||||||||||||||||||
share | year | ||||||||||||||||||||
US$ | US$ | (Years) | US$'000 | ||||||||||||||||||
Outstanding, January 1, 2014 | 12,600,000 | 0.4 | 0.31 | 7.27 | |||||||||||||||||
Exercised | (12,600,000 | ) | 0.4 | 0.31 | - | - | |||||||||||||||
Outstanding, December 31, 2014 | - | - | - | - | - | ||||||||||||||||
Exercisable at December 31, 2014 | - | - | - | - | - | ||||||||||||||||
The aggregate intrinsic value in the table above represents the difference between the fair value of Company's common share as of December 31, 2014 and the exercise price. Total intrinsic value of options granted to employees and directors exercised for the years ended December 31, 2013 and 2014 were RMB53,741 and RMB90,196 (US$14,537), respectively. No share options granted to the employees and directors were exercised during the year ended December 31, 2012. Total intrinsic value of options granted to consultants exercised for the year ended December 31, 2014 was RMB104,416 (US$16,829). No share options granted to the consultants was exercised during the years ended December 31, 2012 and 2013. | |||||||||||||||||||||
On June 8, 2012 (the “Modification Date”), the Company modified the exercise price of both vested and unvested 13,740,000 options that were previously granted to 88 employees, from US$0.4 to US$0.2. The modification was intended to provide additional incentives for these employees. | |||||||||||||||||||||
In accordance with ASC 718, the effects of a modification resulted in incremental compensation cost of US$670, which was measured as the excess of the fair value of the modified award of US$3,460 over the fair value of the original award of US$2,790 at the Modification Date. | |||||||||||||||||||||
The total compensation cost measured at Modification Date was US$2,214, representing the portion of the grant-date fair value of the original award for which the requisite service is expected to be rendered (or has already been rendered) at the Modification Date of US$1,544 and the incremental compensation cost resulting from the modification of US$670. | |||||||||||||||||||||
The incremental compensation cost of US$178 for vested options was recognized immediately at the Modification Date, while the compensation cost of US$2,036 for unvested options is being amortized on an accelerated basis over the remaining vesting term of the original award. | |||||||||||||||||||||
As of December 31, 2014, there was RMB214,038 (US$34,497) of unvested share-based compensation costs related to equity awards granted to employees and directors that is expected to be recognized over a weighted-average vesting period of 2.4 years. To the extent the actual forfeiture rate is different from the original estimate, actual share-based compensation costs related to these awards may be different from the expectation. | |||||||||||||||||||||
As the share options granted to the consultants were fully vested at the grant date, the related compensation expenses were fully recognized in the consolidated statement of comprehensive income at the grant date. | |||||||||||||||||||||
The fair value of share options was determined using the binomial option valuation model, with the assistance from an independent third-party appraiser. The binomial model requires the input of highly subjective assumptions, including the expected share price volatility and the suboptimal early exercise factor. For expected volatilities, the Company has made reference to historical volatilities of several comparable companies. The sub-optimal early exercise factor was estimated based on the vesting and contractual terms of the awards and management's expectation of exercise behavior of the grantees. The risk-free rate for periods within the contractual life of the options is based on market yield of U.S. Treasury Bond in effect at the time of grant. The assumptions used to estimate the fair value of the share options granted are as follows: | |||||||||||||||||||||
For the years ended December 31 | |||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||
Expected volatility | 50.11 | % | 49.86 | % | 50.39%~54.38 | % | |||||||||||||||
Risk-free interest rate | 1.34 | % | 2.6 | % | 0.65%~1.64 | % | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Forfeiture rate | 0 | % | 0 | % | 0.00%~5.00 | % | |||||||||||||||
Suboptimal early exercise factor | 2 | 2.2 | 2.2~2.8 | ||||||||||||||||||
The total fair value of the vested equity awards granted to the employees and directors during the years ended December 31, 2012, 2013 and 2014 were RMB12,437 (US$2,054), RMB11,457 (US$1,893) and RMB 21,946 (US$ 3,537), respectively. | |||||||||||||||||||||
The exercise price of options granted during the years 2013 and 2014, equaled the market price of the ordinary shares on the grant date. No share options were granted during the year ended December 31, 2012. The weighted-average grant-date fair value per share granted to employees and directors during the year ended December 31, 2013, and 2014 were US$0.95 and US$1.35, respectively. | |||||||||||||||||||||
Total share-based compensation expenses relating to options granted to employees, directors and consultants for the years ended December 31, 2012, 2013 and 2014 are included in: | |||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||
Employees | Directors | Consultants | Total | Total | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | |||||||||||||||||
Cost of services | 222 | - | - | 222 | 36 | ||||||||||||||||
Sales and marketing | 780 | - | - | 780 | 126 | ||||||||||||||||
General and administrative | 10,892 | - | - | 10,892 | 1,755 | ||||||||||||||||
Service development expenses | 1,810 | - | - | 1,810 | 292 | ||||||||||||||||
13,704 | - | - | 13,704 | 2,209 | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||
Employees | Directors | Consultants | Total | Total | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | |||||||||||||||||
Cost of services | 113 | - | - | 113 | 18 | ||||||||||||||||
Sales and marketing | 390 | - | - | 390 | 63 | ||||||||||||||||
General and administrative | 6,178 | - | - | 6,178 | 996 | ||||||||||||||||
Service development expenses | 880 | - | - | 880 | 142 | ||||||||||||||||
7,561 | - | - | 7,561 | 1,219 | |||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||
Employees | Directors | Consultants | Total | Total | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | |||||||||||||||||
Cost of services | 1,478 | - | - | 1,478 | 238 | ||||||||||||||||
Sales and marketing | 6,619 | - | - | 6,619 | 1,067 | ||||||||||||||||
General and administrative | 62,984 | 7,786 | - | 70,770 | 11,406 | ||||||||||||||||
Service development expenses | 11,055 | - | - | 11,055 | 1,782 | ||||||||||||||||
82,136 | 7,786 | - | 89,922 | 14,493 | |||||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||
Dec. 31, 2014 | |||
RELATED PARTY TRANSACTIONS [Abstract] | |||
RELATED PARTY TRANSACTIONS | 16 | RELATED PARTY TRANSACTIONS | |
(a) | Related parties | ||
Name of related parties | Relationship with the Group | ||
Shenzhen Bozhi Consulting Co.,Ltd. | Entity controlled by the Chairman and Chief Executive Officer of the Company * | ||
Delite Limited | Shareholder of the Company | ||
* | Mr Man San Law | ||
(b) | The balances with Delite Limited and Shenzhen Bozhi Consulting Co. Ltd. were settled prior to the completion of IPO in 2013. | ||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||||||
COMMITMENTS AND CONTINGENCIES | 17 | COMMITMENTS AND CONTINGENCIES | |||||||
Operating lease commitments | |||||||||
RMB | US$ | ||||||||
2015 | 3,443 | 555 | |||||||
2016 | 1,376 | 222 | |||||||
2017 | 1,376 | 222 | |||||||
2018 | 1,376 | 222 | |||||||
2019 and thereafter | 1,376 | 222 | |||||||
8,947 | 1,443 | ||||||||
Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The Group's lease arrangements have no renewal options, rent escalation clauses, restrictions or contingent rents and are all conducted with third parties. For the years ended December 31, 2012, 2013 and 2014, total rental expenses for all operating leases amounted to approximately RMB4,435, RMB4,931 and RMB5,279 (US$851), respectively. | |||||||||
Income taxes | |||||||||
As of December 31, 2013 and 2014, the Group has recognized approximately RMB28,947 and RMB40,287 (US$6,493), respectively, as an accrual for unrecognized tax benefits, including related interest and penalties. The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of status of limitation. However, due to the uncertainties associated with the status of examinations, including the protocols of finalizing audits by the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with these tax uncertainties. As of December 31, 2013, and 2014, the Group classified the accrual of RMB28,947 and RMB40,287 (US$6,493), respectively, as a long-term payable. | |||||||||
Variable interest entity structure | |||||||||
In the opinion of management, (i) the ownership structure of the Company and its VIEs are in compliance with existing PRC laws and regulations; (ii) the contractual arrangements with the VIEs and their shareholders are valid and binding, and will not result in any violation of PRC laws or regulations currently in effect; and (iii) the Group's business operations are in compliance with existing PRC laws and regulations in all material respects. | |||||||||
However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Group and its contractual arrangements with VIEs are found to be in violation of any existing or future PRC laws and regulations, the Group may be required to restructure its ownership structure and operations in the PRC to comply with the changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Group's current ownership structure or the contractual arrangements with VIEs is remote based on current facts and circumstances. | |||||||||
Contractual Arrangements among the Company and the VIEs | |||||||||
Under applicable PRC tax laws and regulations, arrangements and transactions among related parties may be subject to audit or scrutiny by the PRC tax authorities within ten years after the taxable year when the arrangements or transactions are conducted. The Company could face material and adverse tax consequences if the PRC tax authorities were to determine that the Contractual Arrangements among the Company and the respective VIEs were not entered into on an arm's-length basis and therefore constituted unfavorable transfer pricing arrangements. Unfavorable transfer pricing arrangements could, among other things, result in an upward adjustment on taxation. In addition, the PRC tax authorities may impose interest on late payments on the Company and the respective VIEs for the adjusted but unpaid taxes. In the opinion of management, the likelihood of such an upward adjustment on taxation and related interest is remote based on current facts and circumstances. | |||||||||
Sponsorship commitments | |||||||||
Future sponsorship commitments as of December 31, 2014 | |||||||||
RMB | US$ | ||||||||
2015 | 3,400 | 548 | |||||||
3,400 | 548 | ||||||||
Payments for sponsorships are expensed on a straight-line basis over the beneficial periods. For the year ended December 31, 2014, total sponsorship expenses amounted to approximately RMB2,210 (US$356). | |||||||||
Guarantees | |||||||||
The Group accounts for guarantees in accordance with ASC 460, “Guarantees”. Accordingly, the Group evaluates its guarantees to determine whether (a) the guarantee is specifically excluded from the scope of ASC 460, (b) the guarantee is subject to ASC 460 disclosure requirements only, but not subject to the initial recognition and measurement provisions, or (c) the guarantee is required to be recorded in the financial statements at fair value. | |||||||||
The memorandum and articles of association of the Company require that the Company indemnify its officers and directors, as well as those who act as directors and officers of other entities at the Company's request, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with any proceedings arising out of their services to the Company. The indemnification obligations are more fully described in the memorandum and articles of association. The Company purchases standard directors and officers insurance to cover claims or a portion of the claims made against its directors and officers. Since a maximum obligation is not explicitly stated in the Company's memorandum and articles of association and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. | |||||||||
Historically, the Company has not been required to make payments related to these obligations, and the fair value for these obligations is zero as of December 31, 2013 and 2014. | |||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||
EARNINGS PER SHARE | 18 | EARNINGS PER SHARE | |||||||||||||||||||||||||||
Basic and diluted earnings per share for each of the years presented is calculated as follows: | |||||||||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||
Class B | Class A | Class B | Class A | Class A | Class B | Class B | |||||||||||||||||||||||
Earnings per share—basic: | |||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Allocation of net income attributable to ordinary shareholders used in calculating income per ordinary share—basic | 4,243 | 2,758 | 103,296 | 74,478 | 12,004 | 82,571 | 13,309 | ||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 229,374,777 | 6,198,153 | 232,144,532 | 161,137,587 | 161,137,587 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Denominator used for earnings per share | 229,374,777 | 6,198,153 | 232,144,532 | 161,137,587 | 161,137,587 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Earnings per share—basic | 0.02 | 0.45 | 0.45 | 0.46 | 0.07 | 0.46 | 0.07 | ||||||||||||||||||||||
Earnings per share—diluted: | |||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Allocation of net income attributable to ordinary shareholders used in calculating income per ordinary share— diluted | 4,243 | 10,875 | 95,179 | 78,445 | 12,643 | 78,604 | 12,670 | ||||||||||||||||||||||
Reallocation of net income attributable to ordinary shareholders as a result of conversion of Class B to Class A shares | - | 95,179 | - | 78,604 | 12,670 | - | - | ||||||||||||||||||||||
Net income attributable to ordinary shareholders | 4,243 | 106,054 | 95,179 | 157,049 | 25,313 | 78,604 | 12,670 | ||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 229,374,777 | 6,198,153 | 232,144,532 | 161,137,587 | 161,137,587 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Conversion of Class B to Class A ordinary shares | - | 232,144,532 | - | 178,645,232 | 178,645,232 | - | - | ||||||||||||||||||||||
Share options | 4,303,704 | 21,386,682 | - | 18,065,885 | 18,065,885 | - | - | ||||||||||||||||||||||
Denominator used for earnings per share | 233,678,481 | 259,729,367 | 232,144,532 | 357,848,704 | 357,848,704 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Earnings per share—diluted | 0.02 | 0.41 | 0.41 | 0.44 | 0.07 | 0.44 | 0.07 | ||||||||||||||||||||||
Earnings per ADS: | |||||||||||||||||||||||||||||
Denominator used for earnings per ADS - basic | - | 619,815 | - | 16,113,759 | 16,113,759 | - | - | ||||||||||||||||||||||
Denominator used for earnings per ADS - diluted | - | 25,972,937 | - | 35,784,870 | 35,784,870 | - | - | ||||||||||||||||||||||
Earnings per ADS - basic | - | 4.45 | - | 4.62 | 0.74 | - | - | ||||||||||||||||||||||
Earnings per ADS - diluted | - | 4.08 | - | 4.39 | 0.71 | - | - | ||||||||||||||||||||||
ORDINARY_SHARES
ORDINARY SHARES | 12 Months Ended | |
Dec. 31, 2014 | ||
ORDINARY SHARES [Abstract] | ||
ORDINARY SHARES | 19 | ORDINARY SHARES |
Upon completion of the Company's IPO in November 2013, the Company's ordinary shares were converted into 66,539,000 Class A ordinary shares and 231,428,220 Class B ordinary shares. The conversion of ordinary shares into Class A and Class B ordinary shares has been retroactively reflected in the financial statements as if the conversion had occurred from the earliest period presented. | ||
The Memorandum and Articles of Association were amended and restated such that the authorized share capital consisted of 1,000,000,000 ordinary shares at a par value of US$0.00005 per share, of which 700,000,000 shares were designated as Class A ordinary shares, and 300,000,000 as Class B ordinary shares. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. Each share of Class A ordinary shares is entitled to one vote per share and is not convertible into Class B ordinary shares under any circumstances. Each share of Class B ordinary shares is entitled to ten votes per share and is convertible into one Class A ordinary share at any time by the holder thereof. | ||
Additionally, the Company issued 19,230,769 and 11,538,462 Class B ordinary shares as a result of the conversion of the convertible note (Note 10) and the concurrent private placement for an aggregate consideration of US$15,000, respectively. As of December 31, 2013, 66,539,000 and 262,197,451 Class A and Class B ordinary shares were issued and outstanding, respectively. | ||
In 2014, 22,742,660 share options were exercised at the exercise prices of US$0.2 to US$0.4 per share, resulting in the issuance of 22,742,660 Class A ordinary shares at US$0.00005 each for an aggregate consideration of US$8,107. As of December 31, 2014, 254,844,582 and 96,634,529 Class A and Class B ordinary shares were issued and outstanding, respectively. | ||
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | |||||||||||||||||||||
FAIR VALUE MEASUREMENT | 20 | FAIR VALUE MEASUREMENT | |||||||||||||||||||
In accordance with ASC 820, the Group measures the fair value of the Structured deposit with foreign currency contract component (Note 4) using an income approach based on other inputs that are observable (Level 2) in the market. | |||||||||||||||||||||
The Group measures certain financial assets, including cost method investments, at fair value on a nonrecurring basis only if an impairment charge were to be recognized. The Group's non-financial assets, such as intangible assets and fixed assets, would be measured at fair value only if they were determined to be impaired on an other-than-temporary basis. | |||||||||||||||||||||
Assets measured or disclosed at fair value are summarized below: | |||||||||||||||||||||
Fair value measurement | |||||||||||||||||||||
at December 31, 2013 | |||||||||||||||||||||
Total fair | Quoted prices | Significant other | Significant | ||||||||||||||||||
value at | in active | observable | unobservable | ||||||||||||||||||
December 31, | markets for | inputs | inputs | ||||||||||||||||||
2013 | identical | (Level 2) | (Level 3) | ||||||||||||||||||
assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
RMB | RMB | RMB | RMB | ||||||||||||||||||
Fair value disclosure | |||||||||||||||||||||
Time deposits | 121,085 | - | 121,085 | - | |||||||||||||||||
Total | 121,085 | - | 121,085 | - | |||||||||||||||||
Fair value measurement | |||||||||||||||||||||
at December 31, 2014 | |||||||||||||||||||||
Total fair | Quoted prices | Significant other | Significant | ||||||||||||||||||
value at | in active | observable | unobservable | ||||||||||||||||||
December 31, | markets for | inputs | inputs | ||||||||||||||||||
2014 | identical | (Level 2) | (Level 3) | ||||||||||||||||||
assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
RMB | US$ | RMB | RMB | RMB | |||||||||||||||||
Fair value disclosure | |||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||
Fixed-rate investments | 80,000 | 12,894 | 80,000 | ||||||||||||||||||
Adjustable-rate investments | 30,000 | 4,835 | 30,000 | ||||||||||||||||||
Time deposits | 415,903 | 67,031 | - | 415,903 | - | ||||||||||||||||
Total | 525,903 | 84,760 | - | 525,903 | - | ||||||||||||||||
Fair value measurement | |||||||||||||||||||||
Recurring | |||||||||||||||||||||
Structured deposit (Note 4) | 70,182 | 11,311 | - | 70,182 | - | ||||||||||||||||
Total | 70,182 | 11,311 | - | 70,182 | - | ||||||||||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||
Dec. 31, 2014 | |||
SEGMENT REPORTING [Abstract] | |||
SEGMENT REPORTING | 21 | SEGMENT REPORTING | |
In accordance with ASC 280 “Segment Reporting”, the Group's chief operating decision maker has been identified as the chief executive officer, who makes resource allocation decisions and assesses performance based on the Group's consolidated results. As a result, the Group has only one reportable segment. | |||
Geographic disclosures | |||
As the Group generates substantially all of its revenues from customers domiciled in the PRC, no geographical segments are presented. All of the Group's long-lived assets are located in the PRC. | |||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Dec. 31, 2014 | ||
SUBSEQUENT EVENTS [Abstract] | ||
SUBSEQUENT EVENTS | 22 | SUBSEQUENT EVENTS |
Recent regulations on lottery services industry and online lottery sales | ||
On February 25, 2015, certain provincial sports lottery administration centers to which the Group provides sport lottery sales services suspended online purchase orders for lottery products in response to the Self-Inspection Notice. | ||
The Self-Inspection Notice requires provincial and municipal government branches, including financial, civil affairs and sports bureaus, to conduct inspection and take remedial measures for unauthorized online lottery sales within their respective jurisdictions. The scope of inspection includes, among other things, commercial contract arrangements, online lottery products, lottery sales data exchange, online lottery sales channels, and sales commission fees in connection with unauthorized engagements of online sales agents by lottery administration centers. The Self-Inspection Notice further requires a formal report on the result of the self-inspection and self-remedy be submitted by each provincial or municipal government to the MOF, the Ministry of Civil Affairs and the General Administration of Sports of the PRC by March 1, 2015. | ||
On February 28, 2015, the Group was further informed by the remaining provincial sports lottery administration centers to which the Group provides sport lottery sales services that such provincial sports lottery administration centers also plan to temporarily suspend accepting online purchase orders for lottery products. The Group continued processing online orders for lottery products that are distributed by local lottery stations and represented by paper lottery tickets from February 28, 2015 to April 3, 2015. | ||
On April 3, 2015, eight competent government authorities, namely, the MOF, the Ministry of Public Security, the State Administration for Industry and Commerce, the Ministry of Industry and Information Technology, Ministry of Civil Affairs, People's Bank of China, the General Administration of Sports of China and China Banking Regulatory Commission, jointly released a public bulletin with regard to online lottery sales in China, or Bulletin 18. Bulletin 18 mandates, among other things, that (i) all institutions, online entities, or individuals which provide unauthorized online lottery sales services, either directly or through agents, shall immediately cease such services and all provincial governmental authorities of finance, civil affairs and sports shall investigate and sanction unauthorized online lottery sales in their respective jurisdictions according to relevant laws and regulations; and (ii) lottery issuance authorities that plan to sell lottery products online are required to obtain a consent from the Ministry of Civil Affairs or the General Administration of Sports of China in order to submit an application for written approval by the MOF. | ||
Although the Group is one of the two entities that had been approved by the MOF to conduct online sales of sports lottery products in PRC on behalf of China Sports Lottery Administration Center, the Group decided to voluntarily and temporarily suspend all of its lottery sales services on April 4, 2015. On the basis of the current level of cash and cash equivalents, time deposits and management forecasts, management believes that the risk of the current obligations not being met is low and therefore the Group will continue its operations for the foreseeable future. | ||
Share repurchase program | ||
In February 2015, the Company's board of directors approved a share repurchase program, which provided authorization to purchase up to US$30 million worth of the Company's outstanding ADSs. | ||
Legal and administrative proceedings | ||
On February 27, 2015, a purported stockholder class action lawsuit consisting of purchasers of our ADSs during the period between November 22, 2013 and February 25, 2015, captioned Fragala v. 500.com Limited, et al., Case No. 15-CV-1463-MMM (E), was filed in the U.S. District Court for the Central District of California, or the Court, against the Company, certain of the Company's executive officers, and the underwriters for the Company's initial public offering, or collectively, the Defendants. The complaint alleges that the prospectus, registration statements, and other filings with the U.S. Securities and Exchange Commission from October 22, 2013 to February 23, 2015 contained materially false and misleading information in violation of the federal securities laws and seeks unspecified compensatory damages and other relief. On April 20, 2015, the Court ordered that (i) Defendants need not respond to the complaint until after a lead plaintiff and lead plaintiff's counsel is approved, and lead plaintiff files an amended complaint; (ii) within seven days of the Court's appointment of lead plaintiff and lead counsel, counsel for Defendants and counsel for lead plaintiff shall meet and confer regarding scheduling; and (iii) within five days of the meet and confer, the parties shall submit a stipulation for the Court's approval with the parties' proposed schedule for the filing of an amended complaint as well as the timing on the filing of a motion to dismiss or other response to the amended complaint, and scheduling for same. The Company believes that the class action lawsuit is without merit and intend to defend the lawsuit vigorously, however, there can be no assurance regarding the ultimate outcome of this lawsuit. | ||
Modification of share options exercise price | ||
On March 19, 2015, the board of directors of the Company resolved to modify the exercise price of the share options granted on June 19, 2014 from US$3.232 per share (US$32.32 per ADS) to US$1.00 per share (US$10.00 per ADS). | ||
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY [Abstract] | |||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 23 | CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |||||||||||||||
Under PRC laws and regulations, the Company's PRC subsidiary E-Sun Sky Computer and VIEs are restricted in their ability to transfer certain of its net assets to the Company in the form of dividend payments, loans or advances. The amounts restricted include paid up capital, retained earnings and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling RMB636,146 (US$102,528) as of December 31, 2014. The following is the condensed financial information of the Company on a parent company only basis. | |||||||||||||||||
Condensed balance sheets | |||||||||||||||||
As of | As of | As of | |||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2014 | 2014 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 369,936 | 93,748 | 15,109 | ||||||||||||||
Time deposits | 121,085 | 372,450 | 60,028 | ||||||||||||||
Other current assets | 194 | 5,964 | 962 | ||||||||||||||
Amounts due from intergroup companies | 1,559 | 51,178 | 8,248 | ||||||||||||||
Total current assets | 492,774 | 523,340 | 84,347 | ||||||||||||||
Non-current assets: | |||||||||||||||||
Investment in subsidiaries and VIEs | 335,566 | 619,032 | 99,770 | ||||||||||||||
Property and equipment, net | 527 | 462 | 74 | ||||||||||||||
Total non-current assets | 336,093 | 619,494 | 99,844 | ||||||||||||||
TOTAL ASSETS | 828,867 | 1,142,834 | 184,191 | ||||||||||||||
As of | As of | As of | |||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2014 | 2014 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accrued payroll and welfare payable | - | 62 | 10 | ||||||||||||||
Accrued expenses and other liabilities | 12,098 | 11,217 | 1,807 | ||||||||||||||
Amounts due to intergroup companies | 7,349 | 13,933 | 2,246 | ||||||||||||||
Total current liabilities | 19,447 | 25,212 | 4,063 | ||||||||||||||
TOTAL LIABILITIES | 19,447 | 25,212 | 4,063 | ||||||||||||||
Shareholders' equity : | |||||||||||||||||
Class A Ordinary shares, par value US$0.00005 per share, 700,000,000 shares authorized as of December 31, 2013 and 2014; 66,539,000 and 254,844,582 shares issued and outstanding as of December 31, 2013 and 2014, respectively | 20 | 85 | 14 | ||||||||||||||
Class B Ordinary shares, par value US$0.00005 per share; 300,000,000 shares authorized as of December 31, 2013 and 2014; 262,197,451 and 96,634,529 shares issued and outstanding as of December 31, 2013 and 2014, respectively | 94 | 36 | 6 | ||||||||||||||
Additional paid-in capital | 967,233 | 1,106,234 | 178,293 | ||||||||||||||
Accumulated other comprehensive income | 10,492 | 22,637 | 3,648 | ||||||||||||||
Accumulated deficit | (168,419 | ) | (11,370 | ) | (1,833 | ) | |||||||||||
Total shareholder's equity | 809,420 | 1,117,622 | 180,128 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 828,867 | 1,142,834 | 184,191 | ||||||||||||||
Condensed statements of comprehensive income | |||||||||||||||||
For the years ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net Revenues | - | - | - | - | |||||||||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | - | - | (214 | ) | (34 | ) | |||||||||||
General and administrative | (608 | ) | (952 | ) | (11,875 | ) | (1,914 | ) | |||||||||
Write-off of deferred offering expenses | (2,230 | ) | - | (3,241 | ) | (522 | ) | ||||||||||
Total operating expenses | (2,838 | ) | (952 | ) | (15,330 | ) | (2,470 | ) | |||||||||
Other operating expenses | (4 | ) | - | - | - | ||||||||||||
Operating loss | (2,842 | ) | (952 | ) | (15,330 | ) | (2,470 | ) | |||||||||
Interest income | - | 246 | 10,920 | 1,760 | |||||||||||||
Interest expense | - | (4,712 | ) | - | - | ||||||||||||
Changes in fair value of derivative component of the convertible note | - | (26,809 | ) | - | - | ||||||||||||
Equity in profits of subsidiaries and VIEs | 14,618 | 120,741 | 161,459 | 26,023 | |||||||||||||
Income before income tax | 11,776 | 88,514 | 157,049 | 25,313 | |||||||||||||
Income tax benefit (expense) | (7,533 | ) | 17,540 | - | - | ||||||||||||
Net income | 4,243 | 106,054 | 157,049 | 25,313 | |||||||||||||
Other comprehensive income (loss) | |||||||||||||||||
Foreign currency translation gain (loss) | 58 | (5,496 | ) | 12,145 | 1,957 | ||||||||||||
Comprehensive income | 4,301 | 100,558 | 169,194 | 27,270 | |||||||||||||
Condensed statements of cash flows | |||||||||||||||||
For the years ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net cash generated from (used in) operating activities | 38 | 7,387 | (26,721 | ) | (4,307 | ) | |||||||||||
Net cash generated from (used in) investing activities | 511 | (116,035 | ) | (293,289 | ) | (47,270 | ) | ||||||||||
Net cash generated from financing activities | 2,302 | 479,896 | 42,315 | 6,820 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | - | (4,812 | ) | 1,507 | 243 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 2,851 | 366,436 | (276,188 | ) | (44,514 | ) | |||||||||||
Cash and cash equivalents at beginning of the year | 649 | 3,500 | 369,936 | 59,623 | |||||||||||||
Cash and cash equivalents at end of the year | 3,500 | 369,936 | 93,748 | 15,109 | |||||||||||||
Basis of presentation | |||||||||||||||||
Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company's consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries and VIEs. | |||||||||||||||||
The parent company records its investment in its subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323, “Investments-Equity Method and Joint Ventures”. Such investments are presented on the condensed balance sheets as “Investment in subsidiaries and VIEs” and their respective profit or loss as “Equity in profits of subsidiaries and VIEs” on the condensed statements of comprehensive income. Equity method accounting ceases when the carrying amount of the investment, including any additional financial support, in a subsidiary and VIEs is reduced to zero unless the parent company has guaranteed obligations of the subsidiary and VIEs or is otherwise committed to provide further financial support. If the subsidiary and VIEs subsequently reports net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended. | |||||||||||||||||
The parent company's condensed financial statements should be read in conjunction with the Group's consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Basis of presentation | The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). | |||||||||
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group's consolidated financial statements include, but are not limited to, revenue recognition, allowance for doubtful accounts, useful lives of property and equipment, impairment of intangible assets, realization of deferred tax assets, uncertain income tax positions and share-based compensation. Actual results could materially differ from those estimates. | |||||||||
Changes in Presentation of Comparative Information | Changes in Presentation of Comparative Information | |||||||||
Certain comparative amounts have been reclassified to conform with the current year's presentation. | ||||||||||
Principles of Consolidation | Principles of consolidation | |||||||||
The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries and VIEs in which it has a controlling financial interest. The results of the subsidiaries are consolidated from the date on which the Group obtained control and continue to be consolidated until the date that such control ceases. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. However, if the Company demonstrates its ability to control the VIEs through its rights to all the residual benefits of the VIEs and its obligation to fund losses of the VIEs then the entity is consolidated. All significant intercompany balances and transactions among the Company, its subsidiaries and VIEs have been eliminated on consolidation. | ||||||||||
Convenience Translation and Foreign Currency | Convenience translation | |||||||||
Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 to RMB6.2046 on December 31, 2014 in the city of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. | ||||||||||
Foreign currency | ||||||||||
The functional currency of the Company, BVI, 500wan HK and 500.com USA is the US$. E-Sun Sky Computer and VIEs determined their functional currencies to be the RMB, which is their respective local currencies based on the criteria of ASC 830, “Foreign Currency Matters”. The Company uses the monthly average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders' equity. The Company uses the RMB as its reporting currency. | ||||||||||
Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing at the balance sheet date. Exchange gains and losses resulting from foreign currency transactions are included in the consolidated statements of comprehensive income. | ||||||||||
Cash and Cash Equivalents | Cash and cash equivalents | |||||||||
Cash and cash equivalents represent cash on hand and time deposits, which have original maturities of three months or less when purchased and which are unrestricted as to withdrawal and use. In addition, highly liquid investments which have original maturities of three months or less when purchased are classified as cash equivalents. | ||||||||||
Restricted Cash and Time Deposits | Restricted cash | |||||||||
Restricted cash represents cash held by banks which (i) were granted by the government and designated only for the purchase of fixed assets for certain approved projects, (ii) were drawn from short-term loans and designated only for marketing activities, and (iii) were pledged to financial institutions as collateral for the Group's bank loans. | ||||||||||
Time deposits | ||||||||||
Time deposits represent deposits in commercial banks with original maturities of greater than three months but less than a year. Interest income from time deposits is included in the consolidated statements of comprehensive income. During the years ended December 31, 2012, 2013 and 2014, the Group recorded interest income of RMB1,132, RMB2,058 and RMB17,009 (US$2,741) in the consolidated statements of comprehensive income respectively. | ||||||||||
Accounts Receivables and Allowance for Doubtful Accounts | Accounts receivables and allowance for doubtful accounts | |||||||||
Accounts receivables are carried at original invoiced amount less an allowance for doubtful accounts when collection of the amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers factors such as customer circumstances or age of the receivable. Accounts receivable are written off after all collection efforts have ceased. Collateral is not typically required, nor is interest charged on accounts receivable. | ||||||||||
Accounts Receivable Due from Employees | Accounts receivable due from employees | |||||||||
Under the current prize payout scheme of national and provincial lottery products, prizes can only be claimed by natural persons who present the winning lottery tickets at the time of collection. Accounts receivable due from employees represents cash from winning tickets deposited into certain employees' personal bank accounts which will be transferred into the Group's bank accounts prior to allocation to the winner's accounts. The Group employs several measures to ensure that the employees' personal bank accounts are under the Group's control, for example, keeping a record of the account numbers, passwords, online login information and electronic banking keys of such personal accounts, and monitoring the account activities constantly. | ||||||||||
Property and Equipment, Net | Property and equipment, net | |||||||||
Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, as follows: | ||||||||||
Category | Estimated Useful Life | Estimated Residual | ||||||||
Electronic and office equipment | 3-5 years | 5 | % | |||||||
Motor vehicles | 10 years | 5-Feb | % | |||||||
Leasehold improvements | Shorter of lease term or the estimated useful lives of the assets | - | ||||||||
Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income. | ||||||||||
Intangible Assets | Intangible assets | |||||||||
Intangible assets represent computer software, internet domain name and licensing agreement. These intangible assets are amortized on a straight line basis over their estimated useful lives of the respective assets, which are set out as follows: | ||||||||||
Category | Estimated Useful Life | |||||||||
Computer software | 3-10 years | |||||||||
Internet domain name | 10 years | |||||||||
Licensing agreement | Agreement term | |||||||||
Impairment of Long-Lived Assets | Impairment of long-lived assets | |||||||||
The Group evaluates its long-lived assets or asset group, including intangible assets, with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value. No impairment charge for the long-lived assets was recognized for any of the years presented. | ||||||||||
Short-term investments | Short-term investments | |||||||||
All highly liquid investments with original maturities of greater than three months, but less than 12 months, are classified as short-term investments in accordance with ASC 320-10 “Investments—Debt and Equity Securities”. In accordance with ASC 815 “Derivatives and Hedging”, the Group recognizes financial instruments or other contracts that have all the characteristics of a derivative on its balance sheet as either assets or liabilities, at fair value. Changes in the fair value of derivative financial instruments (“financial derivatives”) are either recognized periodically in earnings or in other comprehensive income depending on the use of the financial derivatives and whether it qualifies for hedge accounting. Changes in fair values of financial derivatives not qualified as hedges are reported in earnings. The estimated fair values of financial derivatives are determined at discrete points in time based on the relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques. | ||||||||||
Long -term investments | Long term investments | |||||||||
The Group's long-term investments consist of cost method investments. In accordance with ASC 325 “Investments-Other”, for investments in an investee over which the Group does not have significant influence and which do not have readily determinable fair value, the Group carries the investment at cost and only adjusts for other-than-temporary declines in fair value and distributions of earnings that exceed the Group's share of earnings since its investment. Management regularly evaluates the impairment of the cost method investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee's cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment's cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. | ||||||||||
Fair Value measurements | Fair value measurements | |||||||||
Financial instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, structured deposit (Note 4), and the derivative redemption feature (Note 10). As of December 31, 2013 and 2014, the carrying values of these financial instruments, other than the structured deposit, approximate their fair values due to their short-term maturities. The Group determined the fair value of the derivative redemption feature and the structured deposit with the assistance of an independent third party valuation firm. | ||||||||||
The Group applies ASC 820, “Fair Value Measurements and Disclosures”. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. | ||||||||||
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||
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. | |||||||||
ASC 820 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. | ||||||||||
Revenue Recognition | Revenue recognition | |||||||||
The Group's revenues are derived principally from online lottery purchase services. Revenue is recognized in accordance with ASC 605, “Revenue Recognition”, when all of the following four criteria are met: (i) persuasive evidence of an arrangement exists; (ii) the service has been rendered; (iii) the fees are fixed or determinable; and (iv) collectability is reasonably assured. | ||||||||||
Online lottery purchase services | ||||||||||
The Group earns service income for online lottery purchase services and revenues are generated from processing lottery purchase orders from end users (“Service Fee”). The Group receives purchase orders from end users through its online platforms, which include website and mobile applications, and processes the orders with the lottery administration centers. Service Fee is received from the lottery administration centers based on the pre-determined service fee rate and the total amount of the processed orders. Pursuant to ASC 605-45, “Principal Agent Considerations”, the Group records Service Fee on a net basis because the Group is not the primary obligor in the arrangement, but acts as an agent in providing such purchase services. | ||||||||||
Contingent service fee | ||||||||||
The Group is entitled to receive additional Service Fee from lottery administration centers when the total amounts of purchase orders reach an agreed threshold (“Contingent Service Fee”). As the Group is the agent in providing lottery purchase services, any Contingent Service Fee received is recorded as net revenue when the agreed thresholds are reached. Once the Group reaches the agreed thresholds, the Contingent Service Fee is then fixed and not subject to any adjustments. | ||||||||||
The Super VIP incentive | ||||||||||
Certain qualified end users (“Super VIP”) are entitled to receive incentives from the Group based on actual purchase amount of each transaction. As the Group does not receive an additional service or benefit from the Super VIP other than service fee earned from lottery administration centers by the Group from the transaction, the incentives are recognized as a reduction of revenue at each year end in accordance with ASC 605-50, “Customer Payments and Incentives”. | ||||||||||
Lottery pool purchase service | ||||||||||
Lottery pools involve individual end users purchasing a share in a pooled lottery outcome or group of outcomes with other end users. Through the lottery pool purchase service, an end user, an initiator, starts a lottery pool by specifying a range of parameters, such as the lottery portfolio, total purchase amount and payout ratio. | ||||||||||
The initiator is required to commit a minimum initial purchase amount when they initiate a pool, usually a certain percentage of the total purchase amount. Other end users then join the pool by agreeing to the parameters set by the initiator and committing on the purchase amount. When the total purchase amount as specified by the initiator is reached, the pooled lottery purchase order will be delivered in the manner specified by the initiator. When the actual purchase amount does not reach the total purchase amount as specified by the initiator but reaches a certain percentage of total purchase amount before the lottery pool purchase deadline, the Group contributes the remaining outstanding purchase amount (i.e., residual amount of lottery pool) in order to complete the lottery pool transaction. If the tickets win prizes from the lottery, the Group distributes the cash prizes to the end users based on the predetermined payout ratio, and the residual amount after distribution is retained by the Group. | ||||||||||
Since the Group contributes the residual amount of lottery pool in order to earn Service Fee from the purchase made by the lottery pool and does not provide any service to the lottery administration centers, the residual amount of lottery pool contributed by the Group paid to the lottery administration centers is recognized as a reduction of revenue. The residual amount of the lottery pool retained by the Group after distribution of the prizes are presented as “other operating income”, and recognized upon the announcement of lottery results, as the Group's principal activity is to provide lottery purchase services to end users. | ||||||||||
Cost of Services | Cost of services | |||||||||
Cost of services comprises employee costs, business tax and surcharges and other direct costs incurred in providing the purchase services. These costs are expensed as incurred. | ||||||||||
Business tax and surcharges | ||||||||||
Business tax and surcharges for the years ended December 31, 2012, 2013 and 2014 of RMB5,485, RMB7,526 and RMB8,198 (US$1,321) respectively, were recorded in cost of services in the consolidated statements of comprehensive income. The Group's online lottery purchase services are subject to business taxes, surcharges and cultural development fees totaling approximately 1.12%-2.97% of revenues before deduction for incentives to certain registered users and residual amount payment to complete the lottery pool purchase. | ||||||||||
Sales and Marketing Expense | Sales and marketing expenses | |||||||||
Commission to certain internet companies | ||||||||||
The Group is responsible to pay certain internet companies a predetermined fixed percentage of the total purchase or deposit amount only if 1) public users enter the Group's website by redirection through these internet companies' website, and/or 2) public users have successfully purchased any lottery tickets or deposited certain amounts of cash into their accounts in the Group's website. The Group is responsible for providing online lottery purchase services when such public users enter the Group's website to purchase lottery tickets. Neither online lottery purchase services have been provided by these internet companies, nor have separate lottery service agreements been entered into between internet companies and the public users. Since these internet companies are providing similar services as those services that have been provided by the Group's internal sales personnel/agent, any relevant costs to be paid by the Group is treated as sales and marketing expenses. | ||||||||||
Advertising expenditure | ||||||||||
Advertising costs are expensed as incurred and are included in “sales and marketing expenses” in the consolidated statements of comprehensive income. Advertising expenses were approximately RMB12,143, RMB30,759 and RMB34,489 (US$5,559) for years ended December 31, 2012, 2013 and 2014, respectively. | ||||||||||
Sponsorship expenses | ||||||||||
The Group's sales and marketing expenses consist of payments under a sponsorship contract. Accounting for sponsorship payments is based upon specific contract provisions. | ||||||||||
Generally, sponsorship payments are expensed on a straight-line basis over the term of the contract after giving recognition to periodic performance provisions of the contract. Prepayments made under the contract are included in prepayments based on the period to which the prepayments apply. | ||||||||||
Awards granted to certain qualified end users | ||||||||||
All new end users are entitled to receive bonus credits from the Group upon the initial registration of their user accounts and all existing users are entitled to receive bonus credits from the Group by depositing a specified amount of cash into their user accounts during a marketing promotion period. The end users can only apply the bonus credits received against future lottery product purchases processed by the Group. The bonus credits are recognized as sales and marketing expenses when the bonus credits are granted to the end users. | ||||||||||
All new and existing end users are entitled to receive additional prize money for winning tickets from selected lotteries purchased through the Group during a marketing promotion period. The cost of the additional prize money is to be shared between the lottery administration centers and the Group at a predetermined percentage or funded entirely by the Group. As the Group does not receive an identifiable benefit in return for the consideration that is sufficiently separable from the lottery administration centers' purchase of lottery processing services from the Group, the additional prize money provided to the lottery administration center, are recognized as a reduction of revenue at each period end in accordance with ASC 605-50, “Customer Payments and Incentives”. | ||||||||||
Service Development Expenses | Service development expenses | |||||||||
Service development expenses consist primarily of personnel-related expenses incurred for the development of, enhancement to, and maintenance of the Group's website that either (i) did not meet the capitalization criteria in accordance with ASC 350, “Intangibles - Goodwill and other”; or (ii) met the capitalization criteria but the costs cannot be separated on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements. Service development expenses are recognized as expenses when incurred. | ||||||||||
Leases | Leases | |||||||||
The Group leases certain office facilities under cancelable and non-cancelable operating leases, generally with an option to renew upon expiry of the lease term. In accordance with ASC 840, “Leases”, leases for a lessee are classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the properties estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. The Group had no capital leases for the years ended December 31, 2012, 2013 and 2014. | ||||||||||
Income Taxes | Income taxes | |||||||||
The Group follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. | ||||||||||
Interest and penalties arising from underpayment of income taxes are computed in accordance with the related PRC tax law and is classified in the consolidated statements of comprehensive income as income tax expense. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. | ||||||||||
In accordance with the provisions of ASC 740, “Income taxes” the Group recognizes in its financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement. The Group's estimated liability for unrecognized tax benefits which is included in the “long-term payables” account is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The outcome for a particular audit cannot be determined with certainty prior to the conclusion of the audit and, in some cases, appeal or litigation process. The actual benefits or liability ultimately realized may differ from the Group's estimates. As each audit is concluded, adjustments, if any, are recorded in the Group's financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. | ||||||||||
In conjunction with ASC 740, the Group also applied ASC 740-30, “Income Taxes: Other Considerations or Special Areas”, to account for the temporary differences arising from the undistributed earnings of the foreign subsidiaries. According to ASC 740-30, all undistributed earnings of a subsidiary shall be presumed to be transferred to the parent entity. Accordingly, the undistributed earnings of a subsidiary included in consolidated income shall be accounted for as a temporary difference and affect deferred tax expense unless the tax law provides a means by which the investment in a domestic subsidiary can be recovered tax free. | ||||||||||
Share-Based Compensation | Share-based compensation | |||||||||
Share options granted to employees and the director | ||||||||||
Share options granted to employees and the director are accounted for under ASC 718, “Compensation - Stock compensation”. In accordance with ASC 718, the Group determines whether a share option should be classified and accounted for as a liability award or an equity award. All grants of share options to employees and the director classified as equity awards are recognized in the financial statements based on their grant date fair values. There were no liability awards granted during any of the periods stated herein. The Group recognizes compensation expense using the accelerated method for share options granted with graded vesting based on service conditions, provided that the amount of compensation expense recognized at any date is at least equal to the portion of the grant-date value of the share options that are vested at that date. | ||||||||||
Share options granted to employees and the director | ||||||||||
ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in the subsequent period if actual forfeitures differ from initial estimates. Forfeiture rate is estimated based on historical and future expectation of employee turnover rate and is adjusted to reflect future change in circumstances and facts, if any. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those share-based awards that are expected to vest. To the extent the Group revises this estimate in the future, the share-based payments could be materially impacted in the period of revision, as well as in following periods. | ||||||||||
The compensation costs associated with a modification of the terms of the award (“Modification Award”) 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 Modification Award over the fair value of the original award at the modification date. Therefore, in relation to the Modification Award, the Group recognizes share-based compensation over the vesting periods of the new options, which comprises, (1) the amortization of the incremental portion of share-based compensation over the remaining vesting term, and (2) any unrecognized compensation cost of original award, using either the original term or the new term, whichever is higher for each reporting period. | ||||||||||
Share options granted to non-employees | ||||||||||
The Group records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, “Equity-based payment to non-employees”. As the share options granted to non-employees were fully vested on the grant date, the related compensation expense was fully recognized in the consolidated statement of comprehensive income on the grant date. | ||||||||||
The Group, with the assistance of an independent valuation firm, determined the fair values of the share options recognized in the consolidated financial statements. The binomial option pricing model is applied in determining the estimated fair value of the share options granted to employees and non-employees. | ||||||||||
Deferred offering expenses | Deferred offering expenses | |||||||||
Direct costs incurred by the Group attributable to its proposed public offerings of ordinary shares that have been deferred. Such costs, including legal and other professional fees, are recorded as deferred offering expenses in the consolidated balance sheets and will be charged against the gross proceeds received from such offerings. For the years ended December 31, 2012, 2013 and 2014, the Group expensed deferred offering expenses of RMB6,404, Nil, and RMB3,241 (US$522), respectively, in the consolidated statements of comprehensive income because the Group deemed the proposed public offerings to be aborted in accordance with ASC 340, “Other assets and deferred costs”. | ||||||||||
Earnings Per Share | Earnings per share | |||||||||
The Group computes earnings per Class A and Class B ordinary shares in accordance with ASC 260, “Earnings Per Share”, using the two class method. Under the provisions of ASC 260, basic net income per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potentially dilutive securities have been excluded from the computation of diluted net income per share if their inclusion is anti-dilutive. Potential ordinary shares consist of the incremental ordinary shares issuable upon the exercise of stock options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A ordinary shares assumes the conversion of Class B ordinary shares, while the diluted net income per share of Class B ordinary shares does not assume the conversion of those shares. | ||||||||||
The liquidation and dividend rights of the holders of the Group's Class A and Class B ordinary shares are identical, except with respect to voting. As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B ordinary shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B ordinary shares is assumed in the computation of the diluted net income per share of Class A ordinary shares, the undistributed earnings are equal to net income for that computation. | ||||||||||
For the purposes of calculating the Group's basic and diluted earnings per Class A and Class B ordinary shares, the ordinary shares relating to the options that were exercised are assumed to have been outstanding from the date of exercise of such options. | ||||||||||
Government Grants | Government grants | |||||||||
Government grants are recognized when there is reasonable assurance that the attached conditions will be complied with. When the grant relates to an expense item, it is recognized in the consolidated statements of comprehensive income as operating income over the period necessary to match the grant on a systematic basis to the related costs. Where the grant relates to an asset acquisition, it is recognized as a deferred government grant and recognized in the consolidated statements of comprehensive income as operating income in proportion to the depreciation of the related assets. | ||||||||||
Recent Accounting pronouncements | Recent accounting pronouncements | |||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for public business entities for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. | ||||||||||
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for public business entities with annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. | ||||||||||
In June 2014, the FASB issued ASU 2014-12, “Compensation—Stock Compensation”. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance. |
ORGANIZATION_Tables
ORGANIZATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Variable Interest Entity | Entity | Date of | Place of | Percentage | Principal | ||||||||||||
establishment | establishment | activities | |||||||||||||||
of | |||||||||||||||||
ownership | |||||||||||||||||
by the | |||||||||||||||||
Company | |||||||||||||||||
Subsidiaries | |||||||||||||||||
Fine Brand Limited (“BVI”) | 9-Feb-11 | British Virgin Islands | 100 | % | Investment Holding | ||||||||||||
500wan HK Limited (“500wan HK”) | 8-Mar-11 | Hong Kong | 100 | % | Investment Holding | ||||||||||||
500.com USA Corporation (“500.com USA”) | 21-Jul-14 | USA | 100 | % | Investment Holding | ||||||||||||
E-Sun Sky Computer (Shenzhen) Co., Ltd. (“E-Sun Sky Computer”) | 18-Jun-07 | PRC | 100 | % | Software Service | ||||||||||||
VIEs | |||||||||||||||||
Shenzhen E-Sun Network Co., Ltd. (“E-Sun Network”) | 7-Dec-99 | PRC | - | Online Lottery Service | |||||||||||||
Shenzhen Youlanguang Science and Technology Co., Ltd. (“Youlanguang | 16-Dec-08 | PRC | - | Online Lottery Service | |||||||||||||
Technology”) | |||||||||||||||||
Shenzhen Guangtiandi Science and Technology Co., Ltd. (“Guangtiandi Technology”) | 16-Dec-08 | PRC | - | Online Lottery Service | |||||||||||||
Shenzhen E-Sun Sky Network Technology Co., Ltd. (“E-Sun Sky Network”)* | 22-May-06 | PRC | - | Online Lottery Service | |||||||||||||
Shenzhen Wubai Zhifu Co.,Ltd (“500Fu”)** | 23-Apr-14 | PRC | - | Third party payment service | |||||||||||||
Lhasa Yicai Network Technology Co., Ltd. (“Lhasa Yicai”)** | 17-Oct-14 | PRC | - | Online Lottery Service | |||||||||||||
Beijing Baifengrun Science and Technology Co., Ltd. (“Baifengrun | 13-Jun-14 | PRC | - | Development, operation of | |||||||||||||
Technology”)*** | mobile phone games | ||||||||||||||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||||||||||||
Carrying Amounts of Assets and Liabilities, Results of Operations and Cash Flows of VIEs | As of | As of | As of | ||||||||||||||
December | December | December | |||||||||||||||
312,013 | 312,014 | 312,014 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 27,831 | 330,690 | 53,298 | ||||||||||||||
Restricted cash | 15,090 | 12,667 | 2,042 | ||||||||||||||
Short-term investments | - | 70,182 | 11,311 | ||||||||||||||
Accounts receivable | 50,778 | 48,550 | 7,825 | ||||||||||||||
Amounts due from intergroup companies | 105,169 | 10,484 | 1,690 | ||||||||||||||
Prepayments and other current assets | 92,395 | 149,256 | 24,055 | ||||||||||||||
Deferred tax assets, current portion | 15,287 | 39,068 | 6,297 | ||||||||||||||
Total current assets | 306,550 | 660,897 | 106,518 | ||||||||||||||
Non-current assets: | |||||||||||||||||
Property and equipment, net | 28,703 | 35,283 | 5,687 | ||||||||||||||
Intangible assets, net | 1,130 | 1,535 | 247 | ||||||||||||||
Deposits | 5,771 | 9,903 | 1,596 | ||||||||||||||
Long-term investments | - | 5,114 | 824 | ||||||||||||||
Deferred tax assets, non-current | 157 | 343 | 55 | ||||||||||||||
Other non-current assets | 2,738 | 1,794 | 289 | ||||||||||||||
Total non-current assets | 38,499 | 53,972 | 8,698 | ||||||||||||||
TOTAL ASSETS | 345,049 | 714,869 | 115,216 | ||||||||||||||
LIABILITIES | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Short-term loans | 12,802 | - | - | ||||||||||||||
Amounts due to intergroup companies | 3,470 | 140,856 | 22,702 | ||||||||||||||
Accrued payroll and welfare payable | 8,336 | 24,828 | 4,002 | ||||||||||||||
Accrued expenses and other current liabilities | 72,857 | 100,367 | 16,176 | ||||||||||||||
Income tax payable | 1,863 | 4,680 | 754 | ||||||||||||||
Total current liabilities | 99,328 | 270,731 | 43,634 | ||||||||||||||
Non-current liabilities: | |||||||||||||||||
Long-term payables | 29,328 | 42,540 | 6,856 | ||||||||||||||
Total non-current liabilities | 29,328 | 42,540 | 6,856 | ||||||||||||||
TOTAL LIABILITIES | 128,656 | 313,271 | 50,490 | ||||||||||||||
For the years ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net revenues | 113,566 | 182,255 | 447,898 | 72,188 | |||||||||||||
Net income | 3,720 | 19,759 | 185,205 | 29,850 | |||||||||||||
For the years ended December 31, | |||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net cash generated from (used in) operating activities | (22,690 | ) | (157,646 | ) | 422,702 | 68,127 | |||||||||||
Net cash generated from (used in) investing activities | 1,587 | 156,033 | (107,041 | ) | (17,252 | ) | |||||||||||
Net cash generated from (used in) financing activities | (966 | ) | 13,052 | (12,802 | ) | (2,063 | ) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
Schedule of Property and Equipment | Category | Estimated Useful Life | Estimated Residual | |||||||
Electronic and office equipment | 3-5 years | 5 | % | |||||||
Motor vehicles | 10 years | 5-Feb | % | |||||||
Leasehold improvements | Shorter of lease term or the estimated useful lives of the assets | - | ||||||||
Estimated Useful Lives of Intangible Assets | Category | Estimated Useful Life | ||||||||
Computer software | 3-10 years | |||||||||
Internet domain name | 10 years | |||||||||
Licensing agreement | Agreement term |
CONCENTRATION_OF_RISKS_Tables
CONCENTRATION OF RISKS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
CONCENTRATION OF RISKS [Abstract] | |||||||||||||||||
Significance of Service Fees Received from Lottery Administration Centers | For the years ended December 31, | ||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Lottery administration center A | 111,533 | 169,474 | 260,096 | 41,920 | |||||||||||||
Lottery administration center B | 43,440 | 75,212 | 198,549 | 32,000 | |||||||||||||
Lottery administration center C | 13,653 | 45,231 | 121,628 | 19,603 |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
INVESTMENTS [Abstract] | |||||||||||||||||||||||||
Schedule of short term investments | |||||||||||||||||||||||||
As of December 31,2014 | |||||||||||||||||||||||||
Original cost | Gross | Gross | Provision | Fair | Fair | ||||||||||||||||||||
unrealized | unrealized | for | value | value | |||||||||||||||||||||
gains | losses | decline | |||||||||||||||||||||||
in value | |||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Structured deposit | 71,306 | - | (1,124 | ) | - | 70,182 | 11,311 | ||||||||||||||||||
Schedule of long term investments | As of | As of | As of | ||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2014 | 2014 | |||||||||||||||||||||||
RMB | RMB | US$ | |||||||||||||||||||||||
Cost Method Investments | |||||||||||||||||||||||||
Private companies | - | 5,114 | 824 | ||||||||||||||||||||||
Limited partnerships | - | 1,538 | 248 | ||||||||||||||||||||||
- | 6,652 | 1,072 |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCOUNTS RECEIVABLE [Abstract] | |||||||||||||
Accounts Receivable and Related Allowance for Doubtful Accounts | As of | As of | As of | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Accounts receivable | 62,522 | 74,445 | 11,998 | ||||||||||
Less: Allowance for doubtful accounts | - | - | - | ||||||||||
Accounts receivable, net | 62,522 | 74,445 | 11,998 |
PREPAYMENTS_OTHER_CURRENT_ASSE1
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | |||||||||||||
Summary of Prepayments and Other Current Assets | As of | As of | As of | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Prepayments | 824 | 371 | 60 | ||||||||||
Deposits for future lottery ticket purchase* | 55,911 | 89,417 | 14,411 | ||||||||||
Receivables from third party payment service providers | 12,416 | 17,705 | 2,854 | ||||||||||
Receivables from lottery administration centers for winnings | 15,880 | 2,749 | 443 | ||||||||||
Interest receivables | - | 6,441 | 1,038 | ||||||||||
Deposit for business acquisition** | - | 20,000 | 3,223 | ||||||||||
Deferred sponsorship and advertising expenses | 1,757 | 10,324 | 1,664 | ||||||||||
Others | 7,485 | 10,880 | 1,754 | ||||||||||
94,273 | 157,887 | 25,447 | |||||||||||
* | Deposits for future lottery ticket purchase represent cash paid in advance by the Group to lottery administration centers for the purchase of lottery tickets. | ||||||||||||
** | Deposit for business acquisition represents cash paid in advance by the Group for a potential business acquisition. The deposit was subsequently returned to the Group in January 2015, as the deal was cancelled. | ||||||||||||
Summary of Deposits | As of | As of | As of | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Deposits for lottery ticket equipment and office leases | 5,939 | 10,071 | 1,623 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||
Schedule of Property and Equipment | As of | As of | As of | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Electronics and office equipment | 23,349 | 30,972 | 4,992 | ||||||||||
Motor vehicles | 4,557 | 9,642 | 1,554 | ||||||||||
Leasehold improvements | 25,748 | 26,391 | 4,253 | ||||||||||
Property and equipment, cost | 53,654 | 67,005 | 10,799 | ||||||||||
Less: Accumulated depreciation | (17,441 | ) | (25,930 | ) | (4,179 | ) | |||||||
Property and equipment, net | 36,213 | 41,075 | 6,620 |
INTANGIBLE_ASSETS_NET_Tables
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INTANGIBLE ASSETS, NET [Abstract] | |||||||||||||
Schedule of Intangible Assets | As of | As of | As of | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Cost: | |||||||||||||
Computer software | 3,975 | 4,785 | 771 | ||||||||||
License agreement | - | 800 | 129 | ||||||||||
Internet domain name | 658 | 658 | 106 | ||||||||||
4,633 | 6,243 | 1,006 | |||||||||||
Accumulated amortization: | |||||||||||||
Computer software | (1,020 | ) | (1,787 | ) | (288 | ) | |||||||
License agreement | - | (800 | ) | (129 | ) | ||||||||
Internet domain name | (236 | ) | (302 | ) | (48 | ) | |||||||
(1,256 | ) | (2,889 | ) | (465 | ) | ||||||||
Intangible assets, net | 3,377 | 3,354 | 541 | ||||||||||
Schedule of Estimated Amortization Expense | RMB | US$ | |||||||||||
2015 | 840 | 135 | |||||||||||
2016 | 470 | 76 | |||||||||||
2017 | 403 | 65 | |||||||||||
2018 | 347 | 56 | |||||||||||
2019 and thereafter | 1,294 | 209 | |||||||||||
3,354 | 541 |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||||||||||||
Summary of Accrued Expenses and Other Current Liabilities | As of | As of | As of | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
Advance from end users | 40,578 | 66,679 | 10,747 | ||||||||||
Business tax and other taxes payable | 4,031 | 4,360 | 703 | ||||||||||
Deferred government grant | 17,925 | 14,016 | 2,259 | ||||||||||
Professional fees payable | 15,442 | 11,323 | 1,825 | ||||||||||
Promotional events payables | 3,752 | 10,869 | 1,752 | ||||||||||
Advertising and sponsorship payable | 902 | 2,267 | 365 | ||||||||||
Others | 5,616 | 8,478 | 1,365 | ||||||||||
88,246 | 117,992 | 19,016 |
CONVERTIBLE_NOTE_Tables
CONVERTIBLE NOTE (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
CONVERTIBLE NOTE [Abstract] | |||||
Reconciliation of Derivative Redemption Feature Measured at Fair Value on Recurring Basis | Derivative | ||||
redemption | |||||
feature | |||||
RMB | |||||
Balance as of December 31, 2012 | - | ||||
Fair value of the derivative redemption feature on issuance date | 22,355 | ||||
Change in fair value of the derivative redemption feature | 26,809 | ||||
Settlement of the derivate redemption feature upon IPO | (49,164 | ) | |||
Balance as of December 31, 2013 | - |
ACCUMULATED_DEFICIT_Tables
ACCUMULATED DEFICIT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCUMULATED DEFICIT [Abstract] | |||||||||||||
Schedule of Accumulated Deficit | As of | As of | As of | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2014 | 2014 | |||||||||||
RMB | RMB | US$ | |||||||||||
PRC statutory reserved funds | 20,849 | 33,754 | 5,440 | ||||||||||
Unreserved accumulated deficit | (189,268 | ) | (45,124 | ) | (7,273 | ) | |||||||
(168,419 | ) | (11,370 | ) | (1,833 | ) |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||
Schedule of Income (Loss) before Income Taxes | 2012 | 2013 | 2014 | 2014 | |||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Cayman Islands | (2,842 | ) | (32,227 | ) | 157,049 | 25,313 | |||||||||||
British Virgin Islands | (22 | ) | (12 | ) | (4 | ) | (1 | ) | |||||||||
Hong Kong | (159 | ) | (297 | ) | (838 | ) | (135 | ) | |||||||||
PRC | 25,267 | 62,296 | 8,829 | 1,423 | |||||||||||||
22,244 | 29,760 | 165,036 | 26,600 | ||||||||||||||
Schedule of Current and Deferred Components | 2012 | 2013 | 2014 | 2014 | |||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Current tax expense | (10,856 | ) | (20,839 | ) | (31,918 | ) | (5,144 | ) | |||||||||
Deferred tax benefit (expense) | (7,145 | ) | 97,133 | 23,931 | 3,857 | ||||||||||||
Income tax benefit (expense) | (18,001 | ) | 76,294 | (7,987 | ) | (1,287 | ) | ||||||||||
Reconciliation of Tax Computed Applying Statutory Income Tax Rate | 2012 | 2013 | 2014 | 2014 | |||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Income before income taxes | 22,244 | 29,760 | 165,036 | 26,600 | |||||||||||||
Income tax computed at applicable tax rates (25%) | 5,561 | 7,440 | 41,259 | 6,650 | |||||||||||||
Effect of different tax rates in different jurisdictions | 755 | 8,134 | 1,313 | 212 | |||||||||||||
Non-deductible expenses | 8,603 | 15,810 | 28,103 | 4,529 | |||||||||||||
Effect of tax holiday | (8,449 | ) | (942 | ) | (16,170 | ) | (2,606 | ) | |||||||||
Effect of tax rate changes | (3,076 | ) | (15,581 | ) | (38,747 | ) | (6,245 | ) | |||||||||
Change in valuation allowance | 1,621 | (1,900 | ) | 18 | 3 | ||||||||||||
Changes in interest and penalties on unrecognized tax benefits | 544 | 2,222 | (349 | ) | (56 | ) | |||||||||||
Effect of EIT reversal for previous years | - | (2,741 | ) | (7,758 | ) | (1,250 | ) | ||||||||||
Outside basis differences | 11,919 | (88,796 | ) | - | |||||||||||||
Others | 523 | 60 | 318 | 50 | |||||||||||||
18,001 | (76,294 | ) | 7,987 | 1,287 | |||||||||||||
Schedule of Unrecognized Tax Benefits Reconciliation | 2012 | 2013 | 2014 | 2014 | |||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Balance at beginning of year | 4,315 | 11,577 | 27,405 | 4,417 | |||||||||||||
Increase relating to current year tax positions | 7,464 | 18,843 | 18,014 | 2,903 | |||||||||||||
Decrease relating to prior year tax positions | - | (2,955 | ) | (5,202 | ) | (838 | ) | ||||||||||
Decrease relating to expiration of applicable statute of limitations | (202 | ) | (60 | ) | (1,316 | ) | (212 | ) | |||||||||
Balance at end of year | 11,577 | 27,405 | 38,901 | 6,270 | |||||||||||||
Summary of Aggregate Amount and per Share Effect of Tax Holidays | 2012 | 2013 | 2014 | 2014 | |||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
The aggregate amount | 8,449 | 942 | 16,170 | 2,606 | |||||||||||||
The aggregate effect on basic and diluted earnings per share for Class A and Class B ordinary shares outstanding | |||||||||||||||||
Basic | 0.04 | - | 0.05 | 0.01 | |||||||||||||
Diluted | 0.04 | - | 0.05 | 0.01 | |||||||||||||
Components of Deferred Taxes | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | US$ | |||||||||||||||
Deferred tax assets, current portion | |||||||||||||||||
Accrued payroll and welfare payable | 1,630 | 3,631 | 585 | ||||||||||||||
Advertising expenditure deductible in future years | 11,675 | 33,466 | 5,393 | ||||||||||||||
Deferred government grants | 2,813 | 2,597 | 419 | ||||||||||||||
Changes in fair value of the Structured deposit | - | 169 | 27 | ||||||||||||||
Less: valuation allowance | (102 | ) | (102 | ) | (16 | ) | |||||||||||
Total deferred tax assets, current portion | 16,016 | 39,761 | 6,408 | ||||||||||||||
Deferred tax assets, non-current portion | |||||||||||||||||
Net operating losses (“NOLs”) | 1,234 | 1,438 | 231 | ||||||||||||||
Less: valuation allowance | (1,077 | ) | (1,095 | ) | (176 | ) | |||||||||||
Total deferred tax assets, non-current portion | 157 | 343 | 55 |
SHAREBASED_PAYMENT_Tables
SHARE-BASED PAYMENT (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SHARE-BASED PAYMENT [Abstract] | |||||||||||||||||||||
Summary of Share Option Activity and Related Information | Share options granted to employees and directors | ||||||||||||||||||||
Number of | Weighted | Weighted | Weighted | Aggregated | |||||||||||||||||
option | average | average | average | intrinsic | |||||||||||||||||
exercise | grant date | remaining | value | ||||||||||||||||||
price | fair value per | contractual | |||||||||||||||||||
share | year | ||||||||||||||||||||
US$ | US$ | (Years) | US$'000 | ||||||||||||||||||
Outstanding, January 1, 2014 | 18,719,980 | 0.28 | 0.43 | 7.63 | |||||||||||||||||
Granted | 34,561,800 | 3.23 | 1.35 | ||||||||||||||||||
Exercised | (10,142,660 | ) | 0.3 | 0.34 | |||||||||||||||||
Outstanding, December 31, 2014 | 43,139,120 | 2.64 | 1.19 | 4.4 | 12,672 | ||||||||||||||||
Vested and expected to vest at December 31, 2014 | 42,756,440 | 2.66 | 1.2 | 4.38 | 12,085 | ||||||||||||||||
Exercisable at December 31, 2014 | 7,238,210 | 0.54 | 0.62 | 6.58 | 9,681 | ||||||||||||||||
Share options granted to consultants | |||||||||||||||||||||
Number of | Weighted | Weighted | Weighted | Aggregated | |||||||||||||||||
option | average | average | average | intrinsic | |||||||||||||||||
exercise | grant date | remaining | value | ||||||||||||||||||
price | fair value per | contractual | |||||||||||||||||||
share | year | ||||||||||||||||||||
US$ | US$ | (Years) | US$'000 | ||||||||||||||||||
Outstanding, January 1, 2014 | 12,600,000 | 0.4 | 0.31 | 7.27 | |||||||||||||||||
Exercised | (12,600,000 | ) | 0.4 | 0.31 | - | - | |||||||||||||||
Outstanding, December 31, 2014 | - | - | - | - | - | ||||||||||||||||
Exercisable at December 31, 2014 | - | - | - | - | - | ||||||||||||||||
Schedule of Assumptions Used to Estimate Fair Value of Share Options Granted | For the years ended December 31 | ||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||
Expected volatility | 50.11 | % | 49.86 | % | 50.39%~54.38 | % | |||||||||||||||
Risk-free interest rate | 1.34 | % | 2.6 | % | 0.65%~1.64 | % | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Forfeiture rate | 0 | % | 0 | % | 0.00%~5.00 | % | |||||||||||||||
Suboptimal early exercise factor | 2 | 2.2 | 2.2~2.8 | ||||||||||||||||||
Schedule of Share-Based Compensation Expenses Relating to Options Granted | |||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||
Employees | Directors | Consultants | Total | Total | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | |||||||||||||||||
Cost of services | 222 | - | - | 222 | 36 | ||||||||||||||||
Sales and marketing | 780 | - | - | 780 | 126 | ||||||||||||||||
General and administrative | 10,892 | - | - | 10,892 | 1,755 | ||||||||||||||||
Service development expenses | 1,810 | - | - | 1,810 | 292 | ||||||||||||||||
13,704 | - | - | 13,704 | 2,209 | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||
Employees | Directors | Consultants | Total | Total | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | |||||||||||||||||
Cost of services | 113 | - | - | 113 | 18 | ||||||||||||||||
Sales and marketing | 390 | - | - | 390 | 63 | ||||||||||||||||
General and administrative | 6,178 | - | - | 6,178 | 996 | ||||||||||||||||
Service development expenses | 880 | - | - | 880 | 142 | ||||||||||||||||
7,561 | - | - | 7,561 | 1,219 | |||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||
Employees | Directors | Consultants | Total | Total | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | |||||||||||||||||
Cost of services | 1,478 | - | - | 1,478 | 238 | ||||||||||||||||
Sales and marketing | 6,619 | - | - | 6,619 | 1,067 | ||||||||||||||||
General and administrative | 62,984 | 7,786 | - | 70,770 | 11,406 | ||||||||||||||||
Service development expenses | 11,055 | - | - | 11,055 | 1,782 | ||||||||||||||||
82,136 | 7,786 | - | 89,922 | 14,493 | |||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||||||
Schedule of Operating Lease Commitments | RMB | US$ | |||||||
2015 | 3,443 | 555 | |||||||
2016 | 1,376 | 222 | |||||||
2017 | 1,376 | 222 | |||||||
2018 | 1,376 | 222 | |||||||
2019 and thereafter | 1,376 | 222 | |||||||
8,947 | 1,443 | ||||||||
Schedule of Future Sponsorship Commitments | RMB | US$ | |||||||
2015 | 3,400 | 548 | |||||||
3,400 | 548 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earnings Per Share | For the years ended | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||
Class B | Class A | Class B | Class A | Class A | Class B | Class B | |||||||||||||||||||||||
Earnings per share—basic: | |||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Allocation of net income attributable to ordinary shareholders used in calculating income per ordinary share—basic | 4,243 | 2,758 | 103,296 | 74,478 | 12,004 | 82,571 | 13,309 | ||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 229,374,777 | 6,198,153 | 232,144,532 | 161,137,587 | 161,137,587 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Denominator used for earnings per share | 229,374,777 | 6,198,153 | 232,144,532 | 161,137,587 | 161,137,587 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Earnings per share—basic | 0.02 | 0.45 | 0.45 | 0.46 | 0.07 | 0.46 | 0.07 | ||||||||||||||||||||||
Earnings per share—diluted: | |||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Allocation of net income attributable to ordinary shareholders used in calculating income per ordinary share— diluted | 4,243 | 10,875 | 95,179 | 78,445 | 12,643 | 78,604 | 12,670 | ||||||||||||||||||||||
Reallocation of net income attributable to ordinary shareholders as a result of conversion of Class B to Class A shares | - | 95,179 | - | 78,604 | 12,670 | - | - | ||||||||||||||||||||||
Net income attributable to ordinary shareholders | 4,243 | 106,054 | 95,179 | 157,049 | 25,313 | 78,604 | 12,670 | ||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 229,374,777 | 6,198,153 | 232,144,532 | 161,137,587 | 161,137,587 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Conversion of Class B to Class A ordinary shares | - | 232,144,532 | - | 178,645,232 | 178,645,232 | - | - | ||||||||||||||||||||||
Share options | 4,303,704 | 21,386,682 | - | 18,065,885 | 18,065,885 | - | - | ||||||||||||||||||||||
Denominator used for earnings per share | 233,678,481 | 259,729,367 | 232,144,532 | 357,848,704 | 357,848,704 | 178,645,232 | 178,645,232 | ||||||||||||||||||||||
Earnings per share—diluted | 0.02 | 0.41 | 0.41 | 0.44 | 0.07 | 0.44 | 0.07 | ||||||||||||||||||||||
Earnings per ADS: | |||||||||||||||||||||||||||||
Denominator used for earnings per ADS - basic | - | 619,815 | - | 16,113,759 | 16,113,759 | - | - | ||||||||||||||||||||||
Denominator used for earnings per ADS - diluted | - | 25,972,937 | - | 35,784,870 | 35,784,870 | - | - | ||||||||||||||||||||||
Earnings per ADS - basic | - | 4.45 | - | 4.62 | 0.74 | - | - | ||||||||||||||||||||||
Earnings per ADS - diluted | - | 4.08 | - | 4.39 | 0.71 | - | - |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FAIR VALUE MEASUREMENT [Abstract] | |||||||||||||||||||||
Summary of assets measured or disclosed at fair value | |||||||||||||||||||||
Fair value measurement | |||||||||||||||||||||
at December 31, 2013 | |||||||||||||||||||||
Total fair | Quoted prices | Significant other | Significant | ||||||||||||||||||
value at | in active | observable | unobservable | ||||||||||||||||||
December 31, | markets for | inputs | inputs | ||||||||||||||||||
2013 | identical | (Level 2) | (Level 3) | ||||||||||||||||||
assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
RMB | RMB | RMB | RMB | ||||||||||||||||||
Fair value disclosure | |||||||||||||||||||||
Time deposits | 121,085 | - | 121,085 | - | |||||||||||||||||
Total | 121,085 | - | 121,085 | - | |||||||||||||||||
Fair value measurement | |||||||||||||||||||||
at December 31, 2014 | |||||||||||||||||||||
Total fair | Quoted prices | Significant other | Significant | ||||||||||||||||||
value at | in active | observable | unobservable | ||||||||||||||||||
December 31, | markets for | inputs | inputs | ||||||||||||||||||
2014 | identical | (Level 2) | (Level 3) | ||||||||||||||||||
assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
RMB | US$ | RMB | RMB | RMB | |||||||||||||||||
Fair value disclosure | |||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||
Fixed-rate investments | 80,000 | 12,894 | 80,000 | ||||||||||||||||||
Adjustable-rate investments | 30,000 | 4,835 | 30,000 | ||||||||||||||||||
Time deposits | 415,903 | 67,031 | - | 415,903 | - | ||||||||||||||||
Total | 525,903 | 84,760 | - | 525,903 | - | ||||||||||||||||
Fair value measurement | |||||||||||||||||||||
Recurring | |||||||||||||||||||||
Structured deposit (Note 4) | 70,182 | 11,311 | - | 70,182 | - | ||||||||||||||||
Total | 70,182 | 11,311 | - | 70,182 | - |
CONDENSED_FINANCIAL_INFORMATIO1
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) (Parent Company [Member]) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Parent Company [Member] | |||||||||||||||||
Schedule of Condensed Balance Sheets | As of | As of | As of | ||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2014 | 2014 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | 369,936 | 93,748 | 15,109 | ||||||||||||||
Time deposits | 121,085 | 372,450 | 60,028 | ||||||||||||||
Other current assets | 194 | 5,964 | 962 | ||||||||||||||
Amounts due from intergroup companies | 1,559 | 51,178 | 8,248 | ||||||||||||||
Total current assets | 492,774 | 523,340 | 84,347 | ||||||||||||||
Non-current assets: | |||||||||||||||||
Investment in subsidiaries and VIEs | 335,566 | 619,032 | 99,770 | ||||||||||||||
Property and equipment, net | 527 | 462 | 74 | ||||||||||||||
Total non-current assets | 336,093 | 619,494 | 99,844 | ||||||||||||||
TOTAL ASSETS | 828,867 | 1,142,834 | 184,191 | ||||||||||||||
As of | As of | As of | |||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2014 | 2014 | |||||||||||||||
RMB | RMB | US$ | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accrued payroll and welfare payable | - | 62 | 10 | ||||||||||||||
Accrued expenses and other liabilities | 12,098 | 11,217 | 1,807 | ||||||||||||||
Amounts due to intergroup companies | 7,349 | 13,933 | 2,246 | ||||||||||||||
Total current liabilities | 19,447 | 25,212 | 4,063 | ||||||||||||||
TOTAL LIABILITIES | 19,447 | 25,212 | 4,063 | ||||||||||||||
Shareholders' equity : | |||||||||||||||||
Class A Ordinary shares, par value US$0.00005 per share, 700,000,000 shares authorized as of December 31, 2013 and 2014; 66,539,000 and 254,844,582 shares issued and outstanding as of December 31, 2013 and 2014, respectively | 20 | 85 | 14 | ||||||||||||||
Class B Ordinary shares, par value US$0.00005 per share; 300,000,000 shares authorized as of December 31, 2013 and 2014; 262,197,451 and 96,634,529 shares issued and outstanding as of December 31, 2013 and 2014, respectively | 94 | 36 | 6 | ||||||||||||||
Additional paid-in capital | 967,233 | 1,106,234 | 178,293 | ||||||||||||||
Accumulated other comprehensive income | 10,492 | 22,637 | 3,648 | ||||||||||||||
Accumulated deficit | (168,419 | ) | (11,370 | ) | (1,833 | ) | |||||||||||
Total shareholder's equity | 809,420 | 1,117,622 | 180,128 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 828,867 | 1,142,834 | 184,191 | ||||||||||||||
Schedule of Condensed Statements of Comprehensive Income | For the years ended December 31, | ||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net Revenues | - | - | - | - | |||||||||||||
Operating expenses: | |||||||||||||||||
Sales and marketing | - | - | (214 | ) | (34 | ) | |||||||||||
General and administrative | (608 | ) | (952 | ) | (11,875 | ) | (1,914 | ) | |||||||||
Write-off of deferred offering expenses | (2,230 | ) | - | (3,241 | ) | (522 | ) | ||||||||||
Total operating expenses | (2,838 | ) | (952 | ) | (15,330 | ) | (2,470 | ) | |||||||||
Other operating expenses | (4 | ) | - | - | - | ||||||||||||
Operating loss | (2,842 | ) | (952 | ) | (15,330 | ) | (2,470 | ) | |||||||||
Interest income | - | 246 | 10,920 | 1,760 | |||||||||||||
Interest expense | - | (4,712 | ) | - | - | ||||||||||||
Changes in fair value of derivative component of the convertible note | - | (26,809 | ) | - | - | ||||||||||||
Equity in profits of subsidiaries and VIEs | 14,618 | 120,741 | 161,459 | 26,023 | |||||||||||||
Income before income tax | 11,776 | 88,514 | 157,049 | 25,313 | |||||||||||||
Income tax benefit (expense) | (7,533 | ) | 17,540 | - | - | ||||||||||||
Net income | 4,243 | 106,054 | 157,049 | 25,313 | |||||||||||||
Other comprehensive income (loss) | |||||||||||||||||
Foreign currency translation gain (loss) | 58 | (5,496 | ) | 12,145 | 1,957 | ||||||||||||
Comprehensive income | 4,301 | 100,558 | 169,194 | 27,270 | |||||||||||||
Schedule of Condensed Statements of Cash Flows | For the years ended December 31, | ||||||||||||||||
2012 | 2013 | 2014 | 2014 | ||||||||||||||
RMB | RMB | RMB | US$ | ||||||||||||||
Net cash generated from (used in) operating activities | 38 | 7,387 | (26,721 | ) | (4,307 | ) | |||||||||||
Net cash generated from (used in) investing activities | 511 | (116,035 | ) | (293,289 | ) | (47,270 | ) | ||||||||||
Net cash generated from financing activities | 2,302 | 479,896 | 42,315 | 6,820 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | - | (4,812 | ) | 1,507 | 243 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 2,851 | 366,436 | (276,188 | ) | (44,514 | ) | |||||||||||
Cash and cash equivalents at beginning of the year | 649 | 3,500 | 369,936 | 59,623 | |||||||||||||
Cash and cash equivalents at end of the year | 3,500 | 369,936 | 93,748 | 15,109 |
ORGANIZATION_Schedule_of_Varia
ORGANIZATION (Schedule of Variable Interest Entity) (Details) | 12 Months Ended | |
Dec. 31, 2014 | ||
BVI [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 9-Feb-11 | |
Place of establishment | British Virgin Islands | |
Percentage of ownership by the Company | 100.00% | |
Principal activities | Investment Holding | |
500wan HK [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 8-Mar-11 | |
Place of establishment | Hong Kong | |
Percentage of ownership by the Company | 100.00% | |
Principal activities | Investment Holding | |
500.com USA [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 21-Jul-14 | |
Place of establishment | USA | |
Percentage of ownership by the Company | 100.00% | |
Principal activities | Investment Holding | |
E-Sun Sky Computer [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 18-Jun-07 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | 100.00% | |
Principal activities | Software Service | |
E-Sun Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 7-Dec-99 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | ||
Principal activities | Online Lottery Service | |
Youlanguang Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 16-Dec-08 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | ||
Principal activities | Online Lottery Service | |
Guangtiandi Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 16-Dec-08 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | ||
Principal activities | Online Lottery Service | |
E-Sun Sky Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 22-May-06 | [1] |
Place of establishment | PRC | [1] |
Percentage of ownership by the Company | [1] | |
Principal activities | Online Lottery Service | [1] |
500Fu [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 23-Apr-14 | [2] |
Place of establishment | PRC | [2] |
Percentage of ownership by the Company | [2] | |
Principal activities | Third party payment service | [2] |
Lhasa Yicai [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 17-Oct-14 | [2] |
Place of establishment | PRC | [2] |
Percentage of ownership by the Company | [2] | |
Principal activities | Online Lottery Service | [2] |
Baifengrun Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | 13-Jun-14 | [3] |
Place of establishment | PRC | [3] |
Percentage of ownership by the Company | [3] | |
Principal activities | Development, operation of | [3] |
mobile phone games | ||
[1] | A subsidiary of E-Sun Network | |
[2] | A subsidiary of E-Sun Sky Network | |
[3] | A subsidiary of Guangtiandi Technology |
ORGANIZATION_Carrying_Amounts_
ORGANIZATION (Carrying Amounts of Assets and Liabilities of VIEs) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | CNY | CNY | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] |
USD ($) | CNY | CNY | |||||||
Current assets: | |||||||||
Cash and cash equivalents | $78,257 | 485,556 | $87,728 | 544,318 | 31,555 | 63,930 | $53,298 | 330,690 | 27,831 |
Restricted cash | 2,042 | 12,669 | 71,662 | 2,042 | 12,667 | 15,090 | |||
Short-term investments | 11,311 | 70,182 | 11,311 | 70,182 | |||||
Accounts receivable | 11,998 | 74,445 | 62,522 | 7,825 | 48,550 | 50,778 | |||
Amounts due from intergroup companies | 1,690 | 10,484 | 105,169 | ||||||
Prepayments and other current assets | 25,447 | 157,887 | 94,273 | 24,055 | 149,256 | 92,395 | |||
Deferred tax assets, current portion | 6,408 | 39,761 | 16,016 | 6,297 | 39,068 | 15,287 | |||
Total current assets | 202,494 | 1,256,403 | 909,876 | 106,518 | 660,897 | 306,550 | |||
Non-current assets: | |||||||||
Property and equipment, net | 6,620 | 41,075 | 36,213 | 5,687 | 35,283 | 28,703 | |||
Intangible assets, net | 541 | 3,354 | 3,377 | 247 | 1,535 | 1,130 | |||
Deposits | 1,623 | 10,071 | 5,939 | 1,596 | 9,903 | 5,771 | |||
Long-term investments | 1,072 | 6,652 | 824 | 5,114 | |||||
Deferred tax assets, non-current | 55 | 343 | 157 | 55 | 343 | 157 | |||
Other non-current assets | 289 | 1,794 | 2,738 | 289 | 1,794 | 2,738 | |||
Total non-current assets | 10,200 | 63,289 | 48,424 | 8,698 | 53,972 | 38,499 | |||
TOTAL ASSETS | 212,694 | 1,319,692 | 958,300 | 115,216 | 714,869 | 345,049 | |||
Current liabilities: | |||||||||
Short-term loans | 12,802 | 12,802 | |||||||
Amounts due to intergroup companies | 22,702 | 140,856 | 3,470 | ||||||
Accrued payroll and welfare payable | 4,936 | 30,634 | 13,012 | 4,002 | 24,828 | 8,336 | |||
Accrued expenses and other current liabilities | 19,016 | 117,992 | 88,246 | 16,176 | 100,367 | 72,857 | |||
Income taxes payable | 1,491 | 9,250 | 4,507 | 754 | 4,680 | 1,863 | |||
Total current liabilities | 25,443 | 157,876 | 118,567 | 43,634 | 270,731 | 99,328 | |||
Non-current liabilities: | |||||||||
Long-term payables | 7,123 | 44,194 | 30,313 | 6,856 | 42,540 | 29,328 | |||
Total non-current liabilities | 7,123 | 44,194 | 30,313 | 6,856 | 42,540 | 29,328 | |||
TOTAL LIABILITIES | $32,566 | 202,070 | 148,880 | $50,490 | 313,271 | 128,656 |
ORGANIZATION_Results_of_Operat
ORGANIZATION (Results of Operations of VIEs) (Details) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | VIEs [Member] | VIEs [Member] | VIEs [Member] | VIEs [Member] | |
USD ($) | CNY | CNY | CNY | |||||
Variable Interest Entity [Line Items] | ||||||||
Net Revenues | $93,434 | 579,717 | 259,534 | 171,527 | $72,188 | 447,898 | 182,255 | 113,566 |
Net income | 25,313 | 157,049 | 106,054 | 4,243 | 29,850 | 185,205 | 19,759 | 3,720 |
Net cash generated from (used in) operating activities | 40,381 | 250,553 | 29,170 | 92,499 | 68,127 | 422,702 | -157,646 | -22,690 |
Net cash generated from (used in) investing activities | -63,782 | -395,744 | 51,965 | -124,869 | -17,252 | -107,041 | 156,033 | 1,587 |
Net cash generated from (used in) financing activities | $13,687 | 84,922 | 436,440 | -5 | ($2,063) | -12,802 | 13,052 | -966 |
ORGANIZATION_Narrative_Details
ORGANIZATION (Narrative) (Details) (Variable Interest Entity, Primary Beneficiary [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Amount of pledge or collateralization of VIEs' assets | $0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | CNY | CNY | CNY | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | China, Yuan Renminbi | United States of America, Dollars | |
USD ($) | CNY | CNY | CNY | |||||||
Summary Of Accounting Policies [Line Items] | ||||||||||
Currency exchange rate | 6.2046 | 1 | ||||||||
Cash and cash equivalents, maturities | three months or less | three months or less | ||||||||
Time deposits, maturity | greater than three months but less than a year | greater than three months but less than a year | ||||||||
Impairment charge of long-lived assets | $0 | 0 | 0 | 0 | ||||||
Business tax and surcharges | 1,321 | 8,198 | 7,526 | 5,485 | ||||||
Percentage of business taxes, surcharges and cultural development fees on revenue, minimum | 1.12% | 1.12% | ||||||||
Percentage of business taxes, surcharges and cultural development fees on revenue, maximum | 2.97% | 2.97% | ||||||||
Advertising costs | 5,559 | 34,489 | 30,759 | 12,143 | ||||||
Capital lease terms | For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the properties estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. | For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the properties estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. | ||||||||
Capital lease obligation | 0 | 0 | 0 | 0 | ||||||
Income Tax Examination, Likelihood of Unfavorable Settlement | Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement | Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement | ||||||||
Ordinary shares, par value | $0.00 | |||||||||
Deferred stock issuance costs | $522 | 3,241 | 6,404 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Electronics and office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Residual, Percentage | 5.00% |
Electronics and office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Electronics and office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Motor vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Residual, Percentage | 2.00% |
Motor vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Residual, Percentage | 5.00% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements, Estimated Useful Life | Shorter of lease term or the estimated useful lives of the assets |
Estimated Residual, Percentage |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Computer software [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 3 years |
Computer software [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Internet domain name [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
License agreement [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
License agreement, Estimated Useful Life | Agreement term |
CONCENTRATION_OF_RISKS_Narrati
CONCENTRATION OF RISKS (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | ||||
Concentration Risk [Line Items] | ||||
Number of entities approved by the MOF to conduct online sales of sports lottery products | 2 | |||
Service Fees [Member] | Concentration of suppliers [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of service fees | 79.10% | 87.30% | 98.30% | |
Service Fees [Member] | Concentration of serviced lottery products [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of service fees | 93.20% | 95.90% | 88.00% |
CONCENTRATION_OF_RISKS_Signifi
CONCENTRATION OF RISKS (Significance of Service Fees Received from Lottery Administration Centers) (Details) | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | Service Fees [Member] | |
Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | Concentration of suppliers [Member] | |||||
Lottery administration center A [Member] | Lottery administration center A [Member] | Lottery administration center A [Member] | Lottery administration center A [Member] | Lottery administration center B [Member] | Lottery administration center B [Member] | Lottery administration center B [Member] | Lottery administration center B [Member] | Lottery administration center C [Member] | Lottery administration center C [Member] | Lottery administration center C [Member] | Lottery administration center C [Member] | |||||
USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | |||||
Concentration Risk [Line Items] | ||||||||||||||||
Net revenue recognized from service fees | $93,434 | 579,717 | 259,534 | 171,527 | $41,920 | 260,096 | 169,474 | 111,533 | $32,000 | 198,549 | 75,212 | 43,440 | $19,603 | 121,628 | 45,231 | 13,653 |
INVESTMENTS_Schedule_of_Deriva
INVESTMENTS (Schedule of Derivative Instruments at Fair Value) (Details) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | CNY | CNY | CNY | Structured Deposit [Member] | Structured Deposit [Member] | |
CNY | USD ($) | |||||
Investment Holdings [Line Items] | ||||||
Original costs | $11,492 | 71,306 | -4,000 | 71,306 | ||
Gross unrealized gains | ||||||
Gross unrealized losses | -1,124 | |||||
Provision for decline in value | ||||||
Fair value of investments | 11,311 | 70,182 | 70,182 | 11,311 | ||
Changes in fair value of the structured deposit | ($181) | -1,124 |
INVESTMENTS_Schedule_of_Invest
INVESTMENTS (Schedule of Investments Categorized by Investment Class) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | Private companies [Member] | Private companies [Member] | Private companies [Member] | Limited partnerships [Member] | Limited partnerships [Member] | Limited partnerships [Member] |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Cost Method Investments | |||||||||
Long-term Investments | $1,072 | 6,652 | $824 | 5,114 | $248 | 1,538 |
INVESTMENTS_Narrative_Details
INVESTMENTS (Narrative) (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Apr. 23, 2014 | Apr. 23, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 12, 2014 |
USD ($) | CNY | CNY | CNY | Huanlelingdang [Member] | Huanlelingdang [Member] | Huanlelingdang [Member] | Hewei [Member] | Hewei [Member] | Hewei [Member] | Danhua [Member] | Danhua [Member] | |
Private companies [Member] | Private companies [Member] | Private companies [Member] | Private companies [Member] | Private companies [Member] | Private companies [Member] | Limited partnerships [Member] | Limited partnerships [Member] | |||||
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | USD ($) | |||||
Cost method investments [Line items] | ||||||||||||
Percentage of cost method investments | 20.00% | 20.00% | 19.00% | 19.00% | ||||||||
Amount of original cost of investments | $806 | 5,000 | $18 | 114 | $1,000 | |||||||
Impairement on investments | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Amount of Investment | 250 | |||||||||||
Amount of unfunded investment commitment | $750 |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
ACCOUNTS RECEIVABLE [Abstract] | |||
Accounts receivable | $11,998 | 74,445 | 62,522 |
Less: Allowance for doubtful accounts | |||
Accounts receivable, net | $11,998 | 74,445 | 62,522 |
PREPAYMENTS_OTHER_CURRENT_ASSE2
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Summary of Prepayments and Other Current Assets) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |||
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | |||
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | ||||||
Prepayments | $60 | 371 | 824 | |||
Deposits for future lottery ticket purchase | 14,411 | [1] | 89,417 | [1] | 55,911 | [1] |
Receivables from third party payment service providers | 2,854 | 17,705 | 12,416 | |||
Receivables from lottery administration centers for winnings | 443 | 2,749 | 15,880 | |||
Interest receivables | 1,038 | 6,441 | ||||
Deposit for business acquisition | 3,223 | [2] | 20,000 | [2] | [2] | |
Deferred sponsorship and advertising expenses | 1,664 | 10,324 | 1,757 | |||
Others | 1,754 | 10,880 | 7,485 | |||
Prepayments and other current assets, Total | $25,447 | 157,887 | 94,273 | |||
[1] | Deposits for future lottery ticket purchase represent cash paid in advance by the Group to lottery administration centers for the purchase of lottery tickets. | |||||
[2] | Deposit for business acquisition represents cash paid in advance by the Group for a potential business acquisition. The deposit was subsequently returned to the Group in January 2015, as the deal was cancelled. |
PREPAYMENTS_OTHER_CURRENT_ASSE3
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Summary of Deposits) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | |||
Deposits for lottery ticket equipment and office leases | $1,623 | 10,071 | 5,939 |
PROPERTY_AND_EQUIPMENT_NET_Sch
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | Electronics and office equipment [Member] | Electronics and office equipment [Member] | Electronics and office equipment [Member] | Motor vehicles [Member] | Motor vehicles [Member] | Motor vehicles [Member] | Leasehold improvements [Member] | Leasehold improvements [Member] | Leasehold improvements [Member] |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property and equipment, cost | $10,799 | 67,005 | 53,654 | $4,992 | 30,972 | 23,349 | $1,554 | 9,642 | 4,557 | $4,253 | 26,391 | 25,748 |
Less: Accumulated depreciation | -4,179 | -25,930 | -17,441 | |||||||||
Property and equipment, net | $6,620 | 41,075 | 36,213 |
PROPERTY_AND_EQUIPMENT_NET_Nar
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
PROPERTY AND EQUIPMENT, NET [Abstract] | ||||
Depreciation expense | $1,395 | 8,653 | 7,847 | 5,167 |
INTANGIBLE_ASSETS_NET_Schedule
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | Computer software [Member] | Computer software [Member] | Computer software [Member] | License agreement [Member] | License agreement [Member] | License agreement [Member] | Internet domain name [Member] | Internet domain name [Member] | Internet domain name [Member] |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Cost | $1,006 | 6,243 | 4,633 | $771 | 4,785 | 3,975 | $129 | 800 | $106 | 658 | 658 | |
Accumulated amortization | -465 | -2,889 | -1,256 | -288 | -1,787 | -1,020 | -129 | -800 | -48 | -302 | -236 | |
Intangible assets, net | $541 | 3,354 | 3,377 |
INTANGIBLE_ASSETS_NET_Narrativ
INTANGIBLE ASSETS, NET (Narrative) (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
INTANGIBLE ASSETS, NET [Abstract] | ||||
Amortization expenses | $263 | 1,634 | 659 | 353 |
INTANGIBLE_ASSETS_NET_Schedule1
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
INTANGIBLE ASSETS, NET [Abstract] | |||
2015 | $135 | 840 | |
2016 | 76 | 470 | |
2017 | 65 | 403 | |
2018 | 56 | 347 | |
2019 and thereafter | 209 | 1,294 | |
Intangible assets, net | $541 | 3,354 | 3,377 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |||
Advance from end users | $10,747 | 66,679 | 40,578 |
Business tax and other taxes payable | 703 | 4,360 | 4,031 |
Deferred government grant | 2,259 | 14,016 | 17,925 |
Professional fees payable | 1,825 | 11,323 | 15,442 |
Promotional events payables | 1,752 | 10,869 | 3,752 |
Advertising and sponsorship payable | 365 | 2,267 | 902 |
Others | 1,365 | 8,478 | 5,616 |
Accrued expenses and other current liabilities, Total | $19,016 | 117,992 | 88,246 |
CONVERTIBLE_NOTE_Details
CONVERTIBLE NOTE (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 21, 2013 | Dec. 31, 2014 |
USD ($) | CNY | USD ($) | CNY | CNY | Ordinary shares [Member] | Class B Ordinary shares [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | |
CNY | Ordinary shares [Member] | USD ($) | |||||||
Debt Instrument [Line Items] | |||||||||
Convertible debt, aggregate principal amount | $20,000 | ||||||||
Convertible debt, maturity date | 30-Jun-14 | ||||||||
Convertible debt, interest rate | 10.00% | ||||||||
Convertible debt, interest rate in event of default | 13.00% | ||||||||
Conversion price per share, percentage | 80.00% | ||||||||
Shares issued upon conversion of debt | 25,000 | 153,325 | 6 | ||||||
Conversion of convertible note to ordinary shares | 19,230,769 | ||||||||
Interest expense | 3,933 | ||||||||
Change in fair value of redemption feature | 26,809 | ||||||||
Gain loss on extinguishment of debt | 30,742 |
CONVERTIBLE_NOTE_Reconciliatio
CONVERTIBLE NOTE (Reconciliation of Derivative Redemption Feature Measured at Fair Value on Recurring Basis) (Detail) (Derivative redemption feature [Member], CNY) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Derivative redemption feature [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning Balance | |
Fair value of the derivative redemption feature on issuance date | 22,355 |
Change in fair value of the derivative redemption feature | 26,809 |
Settlement of the derivate redemption feature upon IPO | -49,164 |
Ending Balance |
ACCUMULATED_DEFICIT_Narrative_
ACCUMULATED DEFICIT (Narrative) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | CNY | Variable Interest Entity, Primary Beneficiary [Member] | E-Sun Sky Computer [Member] |
Retained Earnings Adjustments [Line Items] | ||||
Percentage of after tax profits to be allocated to general reserve fund | 10.00% | 10.00% | ||
Percentage of registered capital | 50.00% | 50.00% | ||
PRC Subsidiary and VIEs restricted amount | $102,528 | 636,146 |
ACCUMULATED_DEFICIT_Schedule_o
ACCUMULATED DEFICIT (Schedule of Accumulated Deficit) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
ACCUMULATED DEFICIT [Abstract] | |||
PRC statutory reserved funds | $5,440 | 33,754 | 20,849 |
Unreserved accumulated deficit | -7,273 | -45,124 | -189,268 |
Accumulated deficit | ($1,833) | -11,370 | -168,419 |
INCOME_TAXES_Narrative_Summary
INCOME TAXES (Narrative Summary of Tax Rates) (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
USD ($) | CNY | CNY | CNY | Hong Kong [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | United States of America [Member] | |
Variable Interest Entity, Primary Beneficiary [Member] | Youlanguang Technology [Member] | E-Sun Network [Member] | E-Sun Sky Computer [Member] | E-Sun Sky Computer [Member] | E-Sun Sky Computer [Member] | Guangtiandi Technology [Member] | Guangtiandi Technology [Member] | Guangtiandi Technology [Member] | 500Fu [Member] | Baifengrun Technology [Member] | Lhasa Yicai [Member] | Key Software Enterprise [Member] | Key Software Enterprise [Member] | High-tech Enterprise [Member] | High-tech Enterprise [Member] | High-tech Enterprise [Member] | High-tech Enterprise [Member] | High-tech Enterprise [Member] | High-tech Enterprise [Member] | 500.com USA [Member] | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | E-Sun Sky Network [Member] | E-Sun Sky Network [Member] | E-Sun Sky Network [Member] | E-Sun Sky Network [Member] | E-Sun Sky Network [Member] | E-Sun Sky Network [Member] | E-Sun Sky Network [Member] | E-Sun Sky Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||||||||||||
Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | USD ($) | |||||||||||||||||||
Forecast [Member] | Forecast [Member] | ||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||||||||||||||||
Statutory EIT rate on taxable income | 16.50% | 25.00% | 15.00% | 25.00% | 25.00% | 12.50% | 12.50% | 0.00% | 0.00% | 0.00% | 25.00% | 25.00% | 25.00% | 15.00% | 10.00% | 10.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||||
Provision for income tax | $1,287 | 7,987 | -76,294 | 18,001 | |||||||||||||||||||||||
Assessable income |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income (Loss) before Income Taxes) (Details) | 12 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Cayman Islands [Member] | Cayman Islands [Member] | Cayman Islands [Member] | Cayman Islands [Member] | British Virgin Islands [Member] | British Virgin Islands [Member] | British Virgin Islands [Member] | British Virgin Islands [Member] | Hong Kong [Member] | Hong Kong [Member] | Hong Kong [Member] | Hong Kong [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Income (loss) before income taxes | $26,600 | 165,036 | 29,760 | 22,244 | $25,313 | 157,049 | -32,227 | -2,842 | ($1) | -4 | -12 | -22 | ($135) | -838 | -297 | -159 | $1,423 | 8,829 | 62,296 | 25,267 |
INCOME_TAXES_Schedule_of_Curre
INCOME TAXES (Schedule of Current and Deferred Components) (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
INCOME TAXES [Abstract] | ||||
Current tax expense | ($5,144) | -31,918 | -20,839 | -10,856 |
Deferred tax benefit (expense) | 3,857 | 23,931 | 97,133 | -7,145 |
Income tax benefit (expense) | ($1,287) | -7,987 | 76,294 | -18,001 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of Tax Computed Applying Statutory Income Tax Rate) (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
INCOME TAXES [Abstract] | ||||
Income before income taxes | $26,600 | 165,036 | 29,760 | 22,244 |
Income tax computed at applicable tax rates (25%) | 6,650 | 41,259 | 7,440 | 5,561 |
Effect of different tax rates in different jurisdictions | 212 | 1,313 | 8,134 | 755 |
Non-deductible expenses | 4,529 | 28,103 | 15,810 | 8,603 |
Effect of tax holiday | -2,606 | -16,170 | -942 | -8,449 |
Effect of tax rate changes | -6,245 | -38,747 | -15,581 | -3,076 |
Change in valuation allowance | 3 | 18 | -1,900 | 1,621 |
Change in interest and penalties on unrecognized tax benefits | -56 | -349 | 2,222 | 544 |
Effect of EIT reversal for previous years | -1,250 | -7,758 | -2,741 | |
Outside basis differences | -88,796 | 11,919 | ||
Others | 50 | 318 | 60 | 523 |
Income tax expense (benefit) | $1,287 | 7,987 | -76,294 | 18,001 |
INCOME_TAXES_Reconciliation_of1
INCOME TAXES (Reconciliation of Tax Computed Applying Statutory Income Tax Rate) (Parenthetical) (Details) (PRC [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
PRC [Member] | |
Income Tax Contingency [Line Items] | |
Percentage of PRC income tax | 25.00% |
INCOME_TAXES_Schedule_of_Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits Reconciliation) (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
INCOME TAXES [Abstract] | ||||
Balance at beginning of year | $4,417 | 27,405 | 11,577 | 4,315 |
Increase relating to current year tax positions | 2,903 | 18,014 | 18,843 | 7,464 |
Decrease relating to prior year tax positions | -838 | -5,202 | -2,955 | |
Decrease relating to expiration of applicable statute of limitations | -212 | -1,316 | -60 | -202 |
Balance at end of year | $6,270 | 38,901 | 27,405 | 11,577 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 06, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | CNY | CNY | CNY | Dividend Declared [Member] | Dividend Declared [Member] | Earliest Tax Year [Member] | Latest Tax Year [Member] | |
CNY | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Unrecognized tax benefits if recognized that would affect effective tax rate | $2,106 | 13,067 | 14,342 | 6,024 | ||||
Recognizes interest and penalties accrued | 342 | 2,119 | 2,463 | 544 | ||||
Unrecognized tax benefits reversed | 398 | 2,469 | 241 | |||||
Accrued interest and penalties | 478 | 2,963 | 3,313 | 1,091 | ||||
Statute of limitation period | In general, the PRC tax authorities have up to three to five years to conduct examinations of the Group's tax filings. | In general, the PRC tax authorities have up to three to five years to conduct examinations of the Group's tax filings. | ||||||
Year open for examination | 2011 | 2014 | ||||||
Net operating losses | 927 | 5,754 | ||||||
Net operating losses expiration year | 2015 | 2019 | ||||||
Distribution of dividends to all ordinary shareholders | 6-Dec-12 | |||||||
Dividends Payable, amount | 90,000 | |||||||
Reversal of deferred tax liabilities arising from outside basis differences of foreign subsidiaries and VIEs | 88,796 | |||||||
Cumulative temporary differences of investments in foreign subsidiaries | $87,359 | 542,027 | 304,191 |
INCOME_TAXES_Summary_of_Aggreg
INCOME TAXES (Summary of Aggregate Amount and per Share Effect of Tax Holidays) (Details) | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Basic [Member] | Basic [Member] | Basic [Member] | Basic [Member] | Diluted [Member] | Diluted [Member] | Diluted [Member] | Diluted [Member] | |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | |||||
Income Tax Holiday [Line Items] | ||||||||||||
The aggregate amount | $2,606 | 16,170 | 942 | 8,449 | ||||||||
The aggregate effect on basic and diluted earnings per share for Class A and Class B ordinary shares outstanding | $0.01 | 0.05 | 0.04 | $0.01 | 0.05 | 0.04 |
INCOME_TAXES_Components_of_Def
INCOME TAXES (Components of Deferred Taxes) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
Deferred tax assets, current portion | |||
Accrued payroll and welfare payable | $585 | 3,631 | 1,630 |
Advertising expenditure deductible in future years | 5,393 | 33,466 | 11,675 |
Deferred government grants | 419 | 2,597 | 2,813 |
Changes in fair value of the Structured deposit | 27 | 169 | |
Less: valuation allowance | -16 | -102 | -102 |
Total deferred tax assets, current portion | 6,408 | 39,761 | 16,016 |
Deferred tax assets, non-current portion | |||
Net operating losses ("NOLs") | 231 | 1,438 | 1,234 |
Less: valuation allowance | -176 | -1,095 | -1,077 |
Total deferred tax assets, non-current portion | $55 | 343 | 157 |
SHORTTERM_LOANS_Details
SHORT-TERM LOANS (Details) (Short-term loans [Member], CNY) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Short-term loans [Member] | ||
Short-term Debt [Line Items] | ||
Aggregate amount of short-term loans outstanding | 18,166 | |
Short-term loans, fixed interest rate | 7.32% | |
Maturity term | 12 months | |
Aggregate repayment of short-term loans | 5,364 | 12,802 |
EMPLOYEE_DEFINED_CONTRIBUTION_1
EMPLOYEE DEFINED CONTRIBUTION PLAN (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
EMPLOYEE DEFINED CONTRIBUTION PLAN [Abstract] | ||||
Amount of employee benefits expensed | $1,619 | 10,042 | 8,848 | 6,595 |
SHAREBASED_PAYMENT_Narrative_D
SHARE-BASED PAYMENT (Narrative) (Details) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 08, 2012 | Mar. 28, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 08, 2012 | Jun. 08, 2012 | Jun. 19, 2014 | Apr. 08, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 19, 2015 | Apr. 08, 2011 | Apr. 08, 2011 | Apr. 08, 2011 | Apr. 08, 2011 | Jun. 19, 2014 | Apr. 08, 2011 | Jun. 19, 2014 | Jun. 19, 2014 | Jun. 19, 2014 | Apr. 08, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 19, 2014 | Oct. 22, 2013 | Jun. 19, 2014 | Oct. 22, 2013 | Jun. 19, 2014 | Oct. 22, 2013 | Jun. 19, 2014 | Oct. 22, 2013 | Oct. 22, 2013 | Jun. 08, 2012 | Jun. 19, 2014 | Mar. 19, 2015 |
USD ($) | USD ($) | CNY | After modification [Member] | Before modification [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Compensation cost measured [Member] | ADS [Member] | ADS [Member] | ||
Employees | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Subsequent Event [Member] | First anniversary [Member] | Second anniversary [Member] | Third anniversary [Member] | Fourth anniversary [Member] | USD ($) | November 22, 2014 [Member] | November 22, 2015 [Member] | November 22, 2016 [Member] | USD ($) | USD ($) | CNY | USD ($) | First anniversary [Member] | First anniversary [Member] | Second anniversary [Member] | Second anniversary [Member] | Third anniversary [Member] | Third anniversary [Member] | 180 days [Member] | After modification [Member] | Employees and Directors [Member] | Employees and Directors [Member] | ||||||||
USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Maximum percentage of issued and outstanding ordinary shares authorized for issuance under plan | 12.00% | ||||||||||||||||||||||||||||||||||||||||
Maximum term for issued share options | 10 years | ||||||||||||||||||||||||||||||||||||||||
Shares granted during period | 13,864,000 | 34,561,800 | 34,561,800 | 2,000,000 | 5,003,980 | 12,600,000 | 32,561,800 | 2,660,000 | |||||||||||||||||||||||||||||||||
Exercise price of share | $3.23 | $0.40 | $3.23 | $1 | $0.40 | $0.40 | $0.40 | $32.32 | $10 | ||||||||||||||||||||||||||||||||
Number of shares options vested | 42,756,440 | 42,756,440 | 5,506,600 | 5,225,800 | 1,565,800 | 1,565,800 | 666,690 | 666,690 | 666,620 | 5,437,820 | 1,620,000 | 10,843,080 | 220,000 | 16,280,900 | 220,000 | 600,000 | |||||||||||||||||||||||||
Intrinsic value of options exercised | $14,537 | 90,196 | 53,741 | $16,829 | 104,416 | ||||||||||||||||||||||||||||||||||||
Share options exercised | 22,742,660 | 22,742,660 | 10,142,660 | 10,142,660 | -12,600,000 | -12,600,000 | |||||||||||||||||||||||||||||||||||
Number of vested and non vested options | 13,740,000 | 43,139,120 | 43,139,120 | 18,719,980 | 18,719,980 | 12,600,000 | |||||||||||||||||||||||||||||||||||
Number of employees granted | 88 | ||||||||||||||||||||||||||||||||||||||||
Exercise price of options previously granted | $0.40 | ||||||||||||||||||||||||||||||||||||||||
Exercise price of options granted | $0.20 | ||||||||||||||||||||||||||||||||||||||||
Incremental compensation cost | 670 | ||||||||||||||||||||||||||||||||||||||||
Fair value of options | 3,460 | 2,790 | 3,537 | 21,946 | 1,893 | 11,457 | 2,054 | 12,437 | 1,544 | ||||||||||||||||||||||||||||||||
Total compensation cost | 2,214 | ||||||||||||||||||||||||||||||||||||||||
Incremental compensation cost recognized during year | 178 | ||||||||||||||||||||||||||||||||||||||||
Incremental compensation cost of unvested options | 2,036 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost for unvested option | $34,497 | 214,038 | |||||||||||||||||||||||||||||||||||||||
Equity awards granted to employees recognition period | 2 years 4 months 24 days | 2 years 4 months 24 days | |||||||||||||||||||||||||||||||||||||||
Weighted-average grant-date fair value per share granted | $1.35 | $0.95 |
SHAREBASED_PAYMENT_Summary_of_
SHARE-BASED PAYMENT (Summary of Share Option Activity and Related Information) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 19, 2014 | Apr. 08, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 08, 2012 |
Number of option | ||||||
Outstanding, January 1, 2014 | 13,740,000 | |||||
Exercised | -22,742,660 | |||||
Outstanding, December 31, 2014 | 13,740,000 | |||||
Employees and Directors [Member] | ||||||
Number of option | ||||||
Outstanding, January 1, 2014 | 18,719,980 | |||||
Granted | 34,561,800 | 13,864,000 | ||||
Exercised | -10,142,660 | |||||
Outstanding, December 31, 2014 | 43,139,120 | 18,719,980 | ||||
Vested and expected to vest at December 31, 2014 | 42,756,440 | |||||
Exercisable at December 31, 2014 | 7,238,210 | |||||
Weighted average exercise price | ||||||
Outstanding, January 1, 2014 | 0.28 | |||||
Granted | 3.23 | $3.23 | $0.40 | |||
Exercised | 0.3 | |||||
Outstanding, December 31, 2014 | 2.64 | $0.28 | ||||
Vested and expected to vest at December 31, 2014 | 2.66 | |||||
Exercisable at December 31, 2014 | 0.54 | |||||
Weighted average grant date fair value per share | ||||||
Outstanding, January 1, 2014 | 0.43 | |||||
Granted | 1.35 | $0.95 | ||||
Exercised | 0.34 | |||||
Outstanding, December 31, 2014 | 1.19 | $0.43 | ||||
Vested and expected to vest at December 31, 2014 | 1.2 | |||||
Exercisable at December 31, 2014 | 0.62 | |||||
Weighted average remaining contractual year | ||||||
Outstanding | 4 years 4 months 24 days | 7 years 7 months 17 days | ||||
Vested and expected to vest at December 31, 2014 | 4 years 4 months 17 days | |||||
Exercisable at December 31, 2014 | 6 years 6 months 29 days | |||||
Aggregated intrinsic value | ||||||
Outstanding, December 31, 2014 | 12,672 | |||||
Vested and expected to vest at December 31, 2014 | 12,085 | |||||
Exercisable at December 31, 2014 | 9,681 | |||||
Consultants [Member] | ||||||
Number of option | ||||||
Outstanding, January 1, 2014 | 12,600,000 | |||||
Granted | 12,600,000 | |||||
Exercised | 12,600,000 | |||||
Outstanding, December 31, 2014 | 12,600,000 | |||||
Exercisable at December 31, 2014 | ||||||
Weighted average exercise price | ||||||
Outstanding, January 1, 2014 | 0.4 | |||||
Granted | $0.40 | |||||
Exercised | 0.4 | |||||
Outstanding, December 31, 2014 | $0.40 | |||||
Exercisable at December 31, 2014 | ||||||
Weighted average grant date fair value per share | ||||||
Outstanding, January 1, 2014 | 0.31 | |||||
Exercised | 0.31 | |||||
Outstanding, December 31, 2014 | $0.31 | |||||
Exercisable at December 31, 2014 | ||||||
Weighted average remaining contractual year | ||||||
Outstanding | 7 years 3 months 7 days | |||||
Exercisable at December 31, 2014 | ||||||
Aggregated intrinsic value | ||||||
Outstanding, December 31, 2014 | ||||||
Exercisable at December 31, 2014 |
SHAREBASED_PAYMENT_Schedule_of
SHARE-BASED PAYMENT (Schedule of Assumptions Used to Estimate Fair Value of Share Options Granted) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 49.86% | 50.11% | |
Expected volatility, minimum | 50.39% | ||
Expected volatility, maximum | 54.38% | ||
Risk-free interest rate | 2.60% | 1.34% | |
Risk-free interest rate, minimum | 0.65% | ||
Risk-free interest rate, maximum | 1.64% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 0.00% | 0.00% | |
Suboptimal early exercise factor | $2.20 | $2 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 0.00% | ||
Suboptimal early exercise factor | $2.20 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 5.00% | ||
Suboptimal early exercise factor | $2.80 |
SHAREBASED_PAYMENT_Schedule_of1
SHARE-BASED PAYMENT (Schedule of Share-Based Compensation Expenses Relating to Options Granted) (Details) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | Service development expenses [Member] | Service development expenses [Member] | Service development expenses [Member] | Service development expenses [Member] | Service development expenses [Member] | Service development expenses [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | Consultants [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | CNY | CNY | CNY | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | Service development expenses [Member] | Service development expenses [Member] | Service development expenses [Member] | CNY | CNY | CNY | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | Service development expenses [Member] | Service development expenses [Member] | Service development expenses [Member] | CNY | CNY | CNY | Cost of Services [Member] | Cost of Services [Member] | Cost of Services [Member] | Sales and marketing [Member] | Sales and marketing [Member] | Sales and marketing [Member] | General and administrative [Member] | General and administrative [Member] | General and administrative [Member] | Service development expenses [Member] | Service development expenses [Member] | Service development expenses [Member] | |||||||
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | ||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | $14,493 | 89,922 | $1,219 | 7,561 | $2,209 | 13,704 | $238 | 1,478 | $18 | 113 | $36 | 222 | $1,067 | 6,619 | $63 | 390 | $126 | 780 | $11,406 | 70,770 | $996 | 6,178 | $1,755 | 10,892 | $1,782 | 11,055 | $142 | 880 | $292 | 1,810 | 82,136 | 7,561 | 13,704 | 1,478 | 113 | 222 | 6,619 | 390 | 780 | 62,984 | 6,178 | 10,892 | 11,055 | 880 | 1,810 | 7,786 | 7,786 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shenzhen Bozhi Consulting Co. Ltd. [Member] | Shenzhen Bozhi Consulting Co. Ltd. [Member] | Shenzhen Bozhi Consulting Co. Ltd. [Member] | Delite Limited [Member] | Delite Limited [Member] | Delite Limited [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | |
Related Party Transaction [Line Items] | ||||||
Transaction amount | ||||||
Balances with related party |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Schedule of Operating Lease Commitments) (Details) | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | CNY |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
2015 | $555 | 3,443 |
2016 | 222 | 1,376 |
2017 | 222 | 1,376 |
2018 | 222 | 1,376 |
2019 and thereafter | 222 | 1,376 |
Operating lease commitments due | $1,443 | 8,947 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||
Total rental expenses for operating leases | $851 | 5,279 | 4,931 | 4,435 |
Accrual for unrecognized tax benefits | 6,493 | 40,287 | 28,947 | |
Total sponsorship expenses | 356 | 2,210 | ||
Fair value of guarantees | $0 | 0 | 0 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Schedule of Future Sponsorship Commitments) (Details) | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | CNY |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
2015 | $548 | 3,400 |
Future sponsorship commitments | $548 | 3,400 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
USD ($) | CNY | CNY | CNY | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | |||||
Basic Numerator: | |||||||||||
Allocation of net income attributable to ordinary shareholders used in calculating income per ordinary share-basic | $13,309 | 82,571 | 103,296 | 4,243 | $12,004 | 74,478 | 2,758 | ||||
Basic Denominator: | |||||||||||
Denominator used for earnings per share | 339,782,819 | 339,782,819 | 238,342,685 | 229,374,777 | 178,645,232 | 178,645,232 | 232,144,532 | 229,374,777 | 161,137,587 | 161,137,587 | 6,198,153 |
Earnings per share-basic | $0.07 | 0.46 | 0.45 | 0.02 | $0.07 | 0.46 | 0.45 | 0.02 | $0.07 | 0.46 | 0.45 |
Diluted Numerator: | |||||||||||
Allocation of net income attributable to ordinary shareholders used in calculating income per ordinary share- diluted | 12,670 | 78,604 | 95,179 | 4,243 | 12,643 | 78,445 | 10,875 | ||||
Reallocation of net income attributable to ordinary shareholders as a result of conversion of Class B to Class A shares | 12,670 | 78,604 | 95,179 | ||||||||
Net income | $25,313 | 157,049 | 106,054 | 4,243 | $12,670 | 78,604 | 95,179 | 4,243 | $25,313 | 157,049 | 106,054 |
Diluted Denominator: | |||||||||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 339,782,819 | 339,782,819 | 238,342,685 | 229,374,777 | 178,645,232 | 178,645,232 | 232,144,532 | 229,374,777 | 161,137,587 | 161,137,587 | 6,198,153 |
Conversion of Class B to Class A ordinary shares | 178,645,232 | 178,645,232 | 232,144,532 | ||||||||
Share options | 4,303,704 | 18,065,885 | 18,065,885 | 21,386,682 | |||||||
Denominator used for earnings per share | 357,848,704 | 357,848,704 | 259,729,367 | 233,678,481 | 178,645,232 | 178,645,232 | 232,144,532 | 233,678,481 | 357,848,704 | 357,848,704 | 259,729,367 |
Earnings per share-diluted | $0.07 | 0.44 | 0.41 | 0.02 | $0.07 | 0.44 | 0.41 | 0.02 | $0.07 | 0.44 | 0.41 |
Earnings per ADS: | |||||||||||
Denominator used for earnings per ADS - basic | 16,113,759 | 16,113,759 | 619,815 | ||||||||
Denominator used for earnings per ADS - diluted | 35,784,870 | 35,784,870 | 25,972,937 | ||||||||
Earnings per ADS - basic | $0.74 | 4.62 | 4.45 | $0.74 | 4.62 | 4.45 | |||||
Earnings per ADS - diluted | $0.71 | 4.39 | 4.08 | $0.71 | 4.39 | 4.08 |
ORDINARY_SHARES_Details
ORDINARY SHARES (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
USD ($) | CNY | CNY | CNY | Minimum [Member] | Maximum [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | USD ($) | USD ($) | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | Ordinary shares [Member] | |||||
USD ($) | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Issuance of ordinary shares from exercise of share options, shares | 22,742,660 | 22,742,660 | 2,660,000 | 22,742,660 | ||||||||||||||
Options exercise price per share | $0.20 | $0.40 | ||||||||||||||||
Number of common shares issued during period | 17,250,000 | 66,539,000 | ||||||||||||||||
Ordinary shares, par value per share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||||||||||||
Aggregate consideration from shares issued from exercise of stock options | $7,863,000 | 48,788,000 | 3,263,000 | $8,107,000 | ||||||||||||||
Conversion of ordinary shares, shares converted | 231,428,220 | 66,539,000 | ||||||||||||||||
Authorized share capital, ordinary shares | 1,000,000,000 | 1,000,000,000 | 300,000,000 | 300,000,000 | 700,000,000 | 700,000,000 | ||||||||||||
Voting rights per share | ten votes per share | one vote per share | ||||||||||||||||
Ordinary shares conversion basis | Each share of Class B ordinary shares is entitled to ten votes per share and is convertible into one Class A ordinary share at any time by the holder thereof. | |||||||||||||||||
Conversion of convertible note, ordinary shares issued | 19,230,769 | |||||||||||||||||
Private placement, ordinary shares issued | 11,538,462 | |||||||||||||||||
Ordinary shares issued, aggregate consideration | $15,000 | |||||||||||||||||
Ordinary shares issued | 96,634,529 | 262,197,451 | 254,844,582 | 66,539,000 | ||||||||||||||
Ordinary shares outstanding | 96,634,529 | 262,197,451 | 254,844,582 | 66,539,000 |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | Structured Deposit [Member] | Structured Deposit [Member] | Fixed-rate investments [Member] | Fixed-rate investments [Member] | Adjustable-rate investments [Member] | Adjustable-rate investments [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Significant other observable inputs (Level 2) [Member] | Significant other observable inputs (Level 2) [Member] | Significant other observable inputs (Level 2) [Member] | Significant other observable inputs (Level 2) [Member] | Significant other observable inputs (Level 2) [Member] | Significant unobservable inputs (Level 3) [Member] | Significant unobservable inputs (Level 3) [Member] | Significant unobservable inputs (Level 3) [Member] |
Recurring [Member] | Recurring [Member] | USD ($) | CNY | USD ($) | CNY | CNY | CNY | Structured Deposit [Member] | CNY | CNY | Structured Deposit [Member] | Fixed-rate investments [Member] | Adjustable-rate investments [Member] | CNY | CNY | Structured Deposit [Member] | ||||
USD ($) | CNY | Recurring [Member] | Recurring [Member] | CNY | CNY | Recurring [Member] | ||||||||||||||
CNY | CNY | CNY | ||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||||||||
Cash equivalents | $12,894 | 80,000 | $4,835 | 30,000 | 80,000 | 30,000 | ||||||||||||||
Time deposits | 67,031 | 415,903 | 121,085 | 415,903 | 121,085 | |||||||||||||||
Total fair value | 84,760 | 525,903 | 121,085 | 525,903 | 121,085 | |||||||||||||||
Short-term investments | $11,311 | 70,182 | 70,182 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
SEGMENT REPORTING [Abstract] | |
Number of reportable segment | 1 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jun. 19, 2014 | Apr. 08, 2011 | Dec. 31, 2014 | Apr. 03, 2015 | Mar. 19, 2015 | Feb. 28, 2015 |
item | ||||||
Employees and Directors [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Exercise price of share | $3.23 | $0.40 | $3.23 | |||
Employees and Directors [Member] | ADS [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Exercise price of share | $32.32 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of Competent Government Authorities who Jointly Released Public Bulletin Regarding Online Lottery Sales | 8 | |||||
Subsequent Event [Member] | Employees and Directors [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Exercise price of share | $1 | |||||
Subsequent Event [Member] | Employees and Directors [Member] | ADS [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Exercise price of share | $10 | |||||
Subsequent Event [Member] | Board of Directors [Member] | ADS [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Amount of authorised share to be repurchased | $30 |
CONDENSED_FINANCIAL_INFORMATIO2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Narrative) (Details) | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | CNY |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY [Abstract] | ||
PRC Subsidiary and VIEs restricted amount | $102,528 | 636,146 |
CONDENSED_FINANCIAL_INFORMATIO3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Balance Sheets) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | CNY | CNY | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | USD ($) | CNY | CNY | CNY | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class A Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | Class B Ordinary shares [Member] | |||||||
USD ($) | CNY | CNY | USD ($) | CNY | CNY | |||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $78,257 | 485,556 | $87,728 | 544,318 | 31,555 | 63,930 | $15,109 | 93,748 | $59,623 | 369,936 | 3,500 | 649 | ||||||||||||
Time deposits | 67,031 | 415,903 | 121,085 | 60,028 | 372,450 | 121,085 | ||||||||||||||||||
Other current assets | 1,754 | 10,880 | 7,485 | 962 | 5,964 | 194 | ||||||||||||||||||
Amounts due from intergroup companies | 8,248 | 51,178 | 1,559 | |||||||||||||||||||||
Total current assets | 202,494 | 1,256,403 | 909,876 | 84,347 | 523,340 | 492,774 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Investment in subsidiaries and VIEs | 99,770 | 619,032 | 335,566 | |||||||||||||||||||||
Property and equipment, net | 6,620 | 41,075 | 36,213 | 74 | 462 | 527 | ||||||||||||||||||
Total non-current assets | 10,200 | 63,289 | 48,424 | 99,844 | 619,494 | 336,093 | ||||||||||||||||||
TOTAL ASSETS | 212,694 | 1,319,692 | 958,300 | 184,191 | 1,142,834 | 828,867 | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accrued payroll and welfare payable | 4,936 | 30,634 | 13,012 | 10 | 62 | |||||||||||||||||||
Accrued expenses and other liabilities | 19,016 | 117,992 | 88,246 | 1,807 | 11,217 | 12,098 | ||||||||||||||||||
Amounts due to intergroup companies | 2,246 | 13,933 | 7,349 | |||||||||||||||||||||
Total current liabilities | 25,443 | 157,876 | 118,567 | 4,063 | 25,212 | 19,447 | ||||||||||||||||||
TOTAL LIABILITIES | 32,566 | 202,070 | 148,880 | 4,063 | 25,212 | 19,447 | ||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||
Ordinary shares, value | 14 | 85 | 20 | 6 | 36 | 94 | 14 | 85 | 20 | 6 | 36 | 94 | ||||||||||||
Additional paid-in capital | 178,293 | 1,106,234 | 967,233 | 178,293 | 1,106,234 | 967,233 | ||||||||||||||||||
Accumulated other comprehensive income | 3,648 | 22,637 | 10,492 | 3,648 | 22,637 | 10,492 | ||||||||||||||||||
Accumulated deficit | -1,833 | -11,370 | -168,419 | -1,833 | -11,370 | -168,419 | ||||||||||||||||||
Total shareholder's equity | 180,128 | 1,117,622 | 809,420 | 180,128 | 1,117,622 | 809,420 | ||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $212,694 | 1,319,692 | 958,300 | $184,191 | 1,142,834 | 828,867 |
CONDENSED_FINANCIAL_INFORMATIO4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Balance Sheets) (Parenthetical) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $0.00 | |
Ordinary shares, shares authorized | 1,000,000,000 | |
Class A Ordinary shares [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $0.00 | $0.00 |
Ordinary shares, shares authorized | 700,000,000 | 700,000,000 |
Ordinary shares, shares issued | 254,844,582 | 66,539,000 |
Ordinary shares, shares outstanding | 254,844,582 | 66,539,000 |
Class B Ordinary shares [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $0.00 | $0.00 |
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 |
Ordinary shares, shares issued | 96,634,529 | 262,197,451 |
Ordinary shares, shares outstanding | 96,634,529 | 262,197,451 |
Parent Company [Member] | Class A Ordinary shares [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $0.00 | $0.00 |
Ordinary shares, shares authorized | 700,000,000 | 700,000,000 |
Ordinary shares, shares issued | 254,844,582 | 66,539,000 |
Ordinary shares, shares outstanding | 254,844,582 | 66,539,000 |
Parent Company [Member] | Class B Ordinary shares [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $0.00 | $0.00 |
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 |
Ordinary shares, shares issued | 96,634,529 | 262,197,451 |
Ordinary shares, shares outstanding | 96,634,529 | 262,197,451 |
CONDENSED_FINANCIAL_INFORMATIO5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Statements of Comprehensive Income) (Details) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | |
USD ($) | CNY | CNY | CNY | |||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Net Revenues | ||||||||
Operating expenses: | ||||||||
Sales and marketing | -28,025 | -173,883 | -84,596 | -45,794 | -34 | -214 | ||
General and administrative | -25,192 | -156,309 | -73,190 | -57,784 | -1,914 | -11,875 | -952 | -608 |
Write-off of deferred offering expenses | -522 | -3,241 | -6,404 | -522 | -3,241 | -2,230 | ||
Total operating expenses | -2,470 | -15,330 | -952 | -2,838 | ||||
Other operating expenses | -730 | -4,527 | -2,678 | -1,821 | -4 | |||
Operating profit | 24,097 | 149,507 | 59,918 | 21,112 | -2,470 | -15,330 | -952 | -2,842 |
Interest income | 2,741 | 17,009 | 2,058 | 1,132 | 1,760 | 10,920 | 246 | |
Interest expense | -57 | -356 | -5,407 | -4,712 | ||||
Changes in fair value of derivative component of the convertible note | -26,809 | -26,809 | ||||||
Equity in profits of subsidiaries and VIEs | 26,023 | 161,459 | 120,741 | 14,618 | ||||
Income before income tax | 26,600 | 165,036 | 29,760 | 22,244 | 25,313 | 157,049 | 88,514 | 11,776 |
Income tax benefit (expense) | -1,287 | -7,987 | 76,294 | -18,001 | 17,540 | -7,533 | ||
Net income | 25,313 | 157,049 | 106,054 | 4,243 | 25,313 | 157,049 | 106,054 | 4,243 |
Other comprehensive income (loss), Foreign currency translation gain (loss) | 1,957 | 12,145 | -5,496 | 58 | 1,957 | 12,145 | -5,496 | 58 |
Comprehensive income | $27,270 | 169,194 | 100,558 | 4,301 | $27,270 | 169,194 | 100,558 | 4,301 |
CONDENSED_FINANCIAL_INFORMATIO6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Statements of Cash Flows) (Details) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | |
USD ($) | CNY | CNY | CNY | |||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||
Net cash generated from (used in) operating activities | $40,381 | 250,553 | 29,170 | 92,499 | ($4,307) | -26,721 | 7,387 | 38 |
Net cash generated from (used in) investing activities | -63,782 | -395,744 | 51,965 | -124,869 | -47,270 | -293,289 | -116,035 | 511 |
Net cash generated from financing activities | 13,687 | 84,922 | 436,440 | -5 | 6,820 | 42,315 | 479,896 | 2,302 |
Effect of exchange rate changes on cash and cash equivalents | 243 | 1,507 | -4,812 | 243 | 1,507 | -4,812 | ||
Net increase (decrease) in cash and cash equivalents | -9,471 | -58,762 | 512,763 | -32,375 | -44,514 | -276,188 | 366,436 | 2,851 |
Cash and cash equivalents at beginning of the year | 87,728 | 544,318 | 31,555 | 63,930 | 59,623 | 369,936 | 3,500 | 649 |
Cash and cash equivalents at end of the year | $78,257 | 485,556 | 544,318 | 31,555 | $15,109 | 93,748 | 369,936 | 3,500 |