Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | WBAI |
Entity Registrant Name | 500.com Ltd |
Entity Central Index Key | 1,517,496 |
Current Fiscal Year End Date | --12-31 |
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 | 334,034,932 |
Class B Ordinary shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 84,999,159 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 61,851 | ¥ 400,657 | ¥ 485,556 |
Restricted cash | 1,636 | 10,599 | 12,669 |
Time deposits | 188,459 | 1,220,797 | 415,903 |
Short-term investments | 7,030 | 45,540 | 70,182 |
Accounts receivable | 562 | 3,638 | 74,445 |
Prepayments and other current assets | $ 4,762 | ¥ 30,855 | 157,887 |
Deferred tax assets, current portion | 39,761 | ||
Total current assets | $ 264,300 | ¥ 1,712,086 | 1,256,403 |
Non-current assets: | |||
Property and equipment, net | 6,822 | 44,194 | 41,075 |
Intangible assets, net | 30,898 | 200,148 | ¥ 3,354 |
Goodwill | 10,019 | 64,899 | |
Deposits | 188 | 1,217 | ¥ 10,071 |
Long-term investments | $ 9,314 | ¥ 60,332 | 6,652 |
Deferred tax assets, non-current | 343 | ||
Other non-current assets | $ 250 | ¥ 1,621 | 1,794 |
Total non-current assets | 57,491 | 372,411 | 63,289 |
TOTAL ASSETS | 321,791 | 2,084,497 | ¥ 1,319,692 |
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to 500.com Limited of Nil and RMB106 (US$16) as of December 31, 2014 and 2015, respectively) | 16 | 106 | |
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB24,828 and RMB14,896 (US$2,300) as of December 31, 2014 and 2015, respectively) | 2,453 | 15,890 | ¥ 30,634 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB100,367 and RMB127,897 (US$19,744) as of December 31, 2014 and 2015, respectively) | 21,707 | 140,612 | 117,992 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB4,680 and RMB1,061 (US$164) as of December 31, 2014 and 2015, respectively) | 187 | 1,214 | 9,250 |
Total current liabilities | 24,363 | 157,822 | 157,876 |
Non-current liabilities: | |||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB42,540 and RMB 45,380 (US$7,006) as of December 31, 2014 and 2015, respectively) | 7,244 | 46,928 | ¥ 44,194 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to 500.com Limited of Nil and RMB 13,411 (US$2,070) as of December 31, 2014 and 2015, respectively) | 2,070 | 13,411 | |
Total non-current liabilities | 9,314 | 60,339 | ¥ 44,194 |
TOTAL LIABILITIES | $ 33,677 | ¥ 218,161 | ¥ 202,070 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Additional paid-in capital | $ 312,200 | ¥ 2,022,369 | ¥ 1,106,234 |
Treasury shares | (1,354) | (8,773) | |
Accumulated other comprehensive income | 13,815 | 89,488 | ¥ 22,637 |
Accumulated deficit | (51,771) | (335,363) | (11,370) |
Total 500.com Limited shareholders' equity | 272,912 | 1,767,863 | ¥ 1,117,622 |
Noncontrolling interests | 15,202 | 98,473 | |
Total shareholders' equity | 288,114 | 1,866,336 | ¥ 1,117,622 |
TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | 321,791 | 2,084,497 | 1,319,692 |
Class A Ordinary shares [Member] | |||
Shareholders' equity: | |||
Ordinary shares, value | 17 | 110 | 85 |
Class B Ordinary shares [Member] | |||
Shareholders' equity: | |||
Ordinary shares, value | $ 5 | ¥ 32 | ¥ 36 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2014$ / shares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2013shares |
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB24,828 and RMB14,896 (US$2,300) as of December 31, 2014 and 2015, respectively) | $ 2,453 | ¥ 15,890 | ¥ 30,634 | ||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB100,367 and RMB127,897 (US$19,744) as of December 31, 2014 and 2015, respectively) | 21,707 | 140,612 | 117,992 | ||
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB4,680 and RMB1,061 (US$164) as of December 31, 2014 and 2015, respectively) | 187 | 1,214 | 9,250 | ||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB42,540 and RMB 45,380 (US$7,006) as of December 31, 2014 and 2015, respectively) | $ 7,244 | ¥ 46,928 | ¥ 44,194 | ||
Ordinary shares, par value | $ / shares | $ 0.00005 | ||||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | |||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to 500.com Limited of Nil and RMB 13,411 (US$2,070) as of December 31, 2014 and 2015, respectively) | $ 2,070 | ¥ 13,411 | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to 500.com Limited of Nil and RMB106 (US$16) as of December 31, 2014 and 2015, respectively) | $ 16 | ¥ 106 | |||
Class A Ordinary shares [Member] | |||||
Ordinary shares, par value | $ / shares | $ 0.00005 | $ 0.00005 | |||
Ordinary shares, shares authorized | 700,000,000 | 700,000,000 | 700,000,000 | ||
Ordinary shares, shares issued | 334,034,932 | 334,034,932 | 254,844,582 | 66,539,000 | |
Ordinary shares, shares outstanding | 334,034,932 | 334,034,932 | 254,844,582 | 66,539,000 | |
Class B Ordinary shares [Member] | |||||
Ordinary shares, par value | $ / shares | $ 0.00005 | $ 0.00005 | |||
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | ||
Ordinary shares, shares issued | 84,999,159 | 84,999,159 | 96,634,529 | 262,197,451 | |
Ordinary shares, shares outstanding | 84,999,159 | 84,999,159 | 96,634,529 | 262,197,451 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB24,828 and RMB14,896 (US$2,300) as of December 31, 2014 and 2015, respectively) | $ 2,300 | ¥ 14,896 | ¥ 24,828 | ||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB100,367 and RMB127,897 (US$19,744) as of December 31, 2014 and 2015, respectively) | 19,744 | 127,897 | 100,367 | ||
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB4,680 and RMB1,061 (US$164) as of December 31, 2014 and 2015, respectively) | 164 | 1,061 | 4,680 | ||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB42,540 and RMB 45,380 (US$7,006) as of December 31, 2014 and 2015, respectively) | 7,006 | 45,380 | ¥ 42,540 | ||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to 500.com Limited of Nil and RMB 13,411 (US$2,070) as of December 31, 2014 and 2015, respectively) | 2,070 | 13,411 | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to 500.com Limited of Nil and RMB106 (US$16) as of December 31, 2014 and 2015, respectively) | $ 16 | ¥ 106 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | Dec. 31, 2013CNY (¥)¥ / sharesshares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net Revenues | $ 15,368 | ¥ 99,552 | ¥ 579,717 | ¥ 259,534 |
Operating expenses: | ||||
Cost of services | (3,760) | (24,355) | (53,909) | (27,818) |
Sales and marketing | (13,434) | (87,022) | (173,883) | (84,596) |
General and administrative | (35,852) | (232,244) | (156,309) | (73,190) |
Service development expenses | $ (9,771) | ¥ (63,296) | (59,398) | ¥ (28,686) |
Write-off of deferred offering expenses | (3,241) | |||
Total operating expenses | $ (62,817) | ¥ (406,917) | (446,740) | ¥ (214,290) |
Other operating income | 1,067 | 6,910 | 17,414 | 14,560 |
Government grant | 312 | 2,022 | 3,643 | 2,792 |
Other operating expenses | (459) | (2,975) | (4,527) | (2,678) |
Operating profit (loss) | (46,529) | (301,408) | 149,507 | 59,918 |
Interest income | 3,178 | 20,589 | 17,009 | 2,058 |
Interest expense | (330) | (2,138) | ¥ (356) | ¥ (5,407) |
Loss from equity method investments | $ (63) | ¥ (407) | ||
Changes in fair value of the derivative component of the convertible note | ¥ (26,809) | |||
Changes in fair value of the structured deposits | $ 174 | ¥ 1,124 | ¥ (1,124) | |
Income (loss) before income tax | (43,570) | (282,240) | 165,036 | ¥ 29,760 |
Income tax benefit (expense) | (6,479) | (41,969) | (7,987) | 76,294 |
Net income (loss) | (50,049) | (324,209) | ¥ 157,049 | ¥ 106,054 |
Less: Net loss attributable to the noncontrolling interests | (48) | (312) | ||
Net income (loss) attributable to 500.com Limited | (50,001) | (323,897) | ¥ 157,049 | ¥ 106,054 |
Other comprehensive (loss) income | ||||
Foreign currency translation (loss) gain | 10,320 | 66,851 | 12,145 | (5,496) |
Other comprehensive income (loss), net of tax | 10,320 | 66,851 | 12,145 | (5,496) |
Comprehensive income (loss) | (39,729) | (257,358) | ¥ 169,194 | ¥ 100,558 |
Less: Comprehensive loss attributable to noncontrolling interests | (48) | (312) | ||
Comprehensive income(loss) attributable to 500.com Limited | $ (39,681) | ¥ (257,046) | ¥ 169,194 | ¥ 100,558 |
Earnings (losses) per share for Class A and Class B ordinary shares outstanding: | ||||
Basic | (per share) | $ (0.13) | ¥ (0.84) | ¥ 0.46 | ¥ 0.45 |
Diluted | (per share) | (0.13) | (0.84) | 0.44 | 0.41 |
Earnings (losses) per American Depositary Share ("ADS") (1 ADS represents 10 Class A ordinary shares) | ||||
Basic | (per share) | (1.30) | (8.40) | 4.62 | 4.45 |
Diluted | (per share) | $ (1.30) | ¥ (8.40) | ¥ 4.39 | ¥ 4.08 |
Weighted average number of Class A and Class B ordinary shares outstanding: | ||||
Basic | 385,590,213 | 385,590,213 | 339,782,819 | 238,342,685 |
Diluted | 385,590,213 | 385,590,213 | 357,848,704 | 259,729,367 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Cash flow from operating activities | ||||
Net income (loss) | $ (50,049) | ¥ (324,209) | ¥ 157,049 | ¥ 106,054 |
Adjustments to reconcile net income to net cash provided in operating activities: | ||||
Depreciation of property and equipment | 1,576 | 10,209 | 8,653 | 7,847 |
Amortization of intangible assets | 210 | 1,361 | 1,634 | 659 |
Deferred tax (benefit) expense | 6,187 | 40,079 | (23,931) | (97,133) |
Share-based compensation | 24,488 | 158,628 | 89,922 | 7,561 |
Loss (gain) on disposal of property and equipment | 35 | 228 | ¥ (2) | ¥ 518 |
Impairment loss on equity investment | 772 | 5,000 | ||
Provision for bad debt | $ 3,064 | ¥ 19,848 | ||
Write-off of deferred offering expenses | ¥ 3,241 | |||
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 | $ (174) | ¥ (1,124) | ¥ 1,124 | |
Loss from equity method investments | $ 63 | ¥ 407 | ||
Reimbursement of American Depositary Receipt ("ADR") program related expenses | ¥ (2,648) | |||
Accumulated deficit brought forward from acquired VIE | $ (15) | ¥ (96) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | $ 7,883 | ¥ 51,062 | ¥ (11,923) | ¥ (39,585) |
Accounts receivable due from employees | 225 | |||
Prepayments and other current assets | $ 21,251 | ¥ 137,652 | ¥ (42,511) | (25,616) |
Deposits | 1,367 | 8,854 | (4,132) | (476) |
Accrued expenses and other current liabilities | (6,656) | (43,114) | 37,831 | 22,876 |
Accrued payroll and welfare payable | $ (2,454) | ¥ (15,896) | ¥ 17,622 | 2,604 |
Amount due to a related party | (8,520) | |||
Long-term payables | $ 422 | ¥ 2,734 | ¥ 13,881 | 18,461 |
Income tax payable | (1,428) | (9,248) | 4,743 | 2,953 |
Net cash generated from operating activities | 6,542 | 42,375 | 250,553 | 29,170 |
Cash flows from investing activities | ||||
Acquisition of property and equipment | (1,577) | (10,214) | (15,469) | (9,111) |
Acquisition of intangible assets | (137) | (885) | (1,719) | (416) |
Acquisition of other non-current assets | (9,029) | (58,487) | (24,114) | (2,738) |
Restricted cash | 320 | 2,070 | ¥ 2,481 | ¥ (3,941) |
Cash paid for business combination, net of cash | (14,388) | (93,201) | ||
Cash paid for short-term investments | (6,857) | (44,416) | ¥ (71,306) | |
Cash paid for time deposits | (320,773) | (2,077,901) | (580,444) | ¥ (121,085) |
Cash received from return of time deposits | 199,249 | 1,290,692 | ¥ 294,818 | |
Cash received from return of short-term investments | $ 10,834 | ¥ 70,182 | ||
Change in amounts due from related parties | ¥ 188,242 | |||
Proceeds from disposal of property and equipment | $ 15 | ¥ 97 | ¥ 9 | 1,014 |
Net cash generated from (used in) investing activities | (142,343) | (922,063) | (395,744) | 51,965 |
Cash flows from financing activities | ||||
Proceeds from short-term bank borrowings | 26,861 | 174,000 | 1,000 | 201,290 |
Repayment of short-term bank borrowings | (26,861) | (174,000) | (13,802) | (188,488) |
Cash received from release of restricted cash | 29,460 | 190,839 | ¥ 56,512 | (56,512) |
Cash paid for restricted cash | (29,460) | (190,839) | 122,584 | |
Proceeds from the exercise of share options | 2,798 | 18,126 | ¥ 48,788 | 3,263 |
Proceeds from the private placement | $ 114,099 | ¥ 739,108 | 91,994 | |
Proceeds from the initial public offering ("IPO"), net of issuance costs | ¥ 456,835 | |||
Repurchase of ordinary shares | $ (1,354) | ¥ (8,773) | ||
Payment of dividends | ¥ (194,526) | |||
Reimbursement of ADR program related expenses | ¥ 3,161 | |||
Payment for public offering expenses | (10,737) | |||
Net cash generated from financing activities | $ 115,543 | ¥ 748,461 | 84,922 | ¥ 436,440 |
Effect of exchange rate changes on cash and cash equivalents | 7,152 | 46,328 | 1,507 | (4,812) |
Net increase (decrease) in cash and cash equivalents | (13,106) | (84,899) | (58,762) | 512,763 |
Cash and cash equivalents at beginning of the year | 74,957 | 485,556 | 544,318 | 31,555 |
Cash and cash equivalents at end of the year | 61,851 | 400,657 | 485,556 | 544,318 |
Supplemental disclosures of cash flow information: | ||||
Income tax paid | $ (1,457) | ¥ (9,439) | (15,836) | (2,363) |
Interest paid | (356) | (694) | ||
Interest received | $ 2,377 | ¥ 15,400 | ¥ 10,568 | ¥ 1,750 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands | USD ($)shares | CNY (¥)shares | Ordinary shares [Member]USD ($) | Ordinary shares [Member]CNY (¥) | Additional paid-in capital [Member]USD ($) | Additional paid-in capital [Member]CNY (¥) | Treasury shares [Member]USD ($) | Treasury shares [Member]CNY (¥) | Accumulated other comprehensive income (loss) [Member]USD ($) | Accumulated other comprehensive income (loss) [Member]CNY (¥) | Accumulated deficit [Member]USD ($) | Accumulated deficit [Member]CNY (¥) | Noncontrolling interests [Member]USD ($) | Noncontrolling interests [Member]CNY (¥) | Class A Ordinary shares [Member]shares | Class A Ordinary shares [Member]Ordinary shares [Member]shares | Class B Ordinary shares [Member]shares | Class B Ordinary shares [Member]Ordinary shares [Member]shares |
Balance at Dec. 31, 2012 | ¥ (2,620) | ¥ 84 | ¥ 255,781 | ¥ 15,988 | ¥ (274,473) | |||||||||||||
Balance, shares at Dec. 31, 2012 | shares | 228,768,220 | |||||||||||||||||
Net income (loss) for the year | 106,054 | ¥ 106,054 | ||||||||||||||||
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 | 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 | 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 | shares | 19,230,769 | |||||||||||||||||
Issuance of ordinary shares | 455,339 | ¥ 20 | 455,319 | |||||||||||||||
Issuance of ordinary shares, 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 | shares | 66,539,000 | 262,197,451 | ||||||||||||||||
Net income (loss) for the year | 157,049 | ¥ 157,049 | ||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||
Foreign currency translation gain (loss) | ¥ 12,145 | ¥ 12,145 | ||||||||||||||||
Conversion of Class B to Class A ordinary shares | ||||||||||||||||||
Conversion of Class B to Class A ordinary shares, 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 | shares | 22,742,660 | 22,742,660 | 22,742,660 | |||||||||||||||
Share-based compensation | ¥ 89,922 | 89,922 | ||||||||||||||||
Balance at Dec. 31, 2014 | 1,117,622 | ¥ 121 | ¥ 1,106,234 | ¥ 22,637 | ¥ (11,370) | |||||||||||||
Balance, shares at Dec. 31, 2014 | shares | 254,844,582 | 96,634,529 | ||||||||||||||||
Acquisition of VIE | (96) | (96) | ||||||||||||||||
Acquisition of shares of consolidated subsidiaries | $ | $ 98,785 | $ 98,785 | ||||||||||||||||
Net income (loss) for the year | (50,049) | (324,209) | ¥ (323,897) | ¥ (312) | ||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||
Foreign currency translation gain (loss) | $ 10,320 | 66,851 | ¥ 66,851 | |||||||||||||||
Issuance of ordinary shares from private placement | ¥ 739,109 | ¥ 20 | ¥ 739,089 | |||||||||||||||
Issuance of ordinary shares from private placement, shares | shares | 63,500,500 | |||||||||||||||||
Conversion of Class B to Class A ordinary shares | ||||||||||||||||||
Conversion of Class B to Class A ordinary shares, shares | shares | 11,635,370 | (11,635,370) | ||||||||||||||||
Issuance of ordinary shares from exercise of share options | ¥ 18,419 | ¥ 1 | ¥ 18,418 | |||||||||||||||
Issuance of ordinary shares from exercise of share options, shares | shares | 5,274,480 | 5,274,480 | 5,274,480 | |||||||||||||||
Issuance of ordinary shares, shares | shares | 5,274,480 | |||||||||||||||||
Repurchase of ordinary shares | ¥ (8,773) | ¥ (8,773) | ||||||||||||||||
Repurchase of ordinary shares, shares | shares | (1,220,000) | |||||||||||||||||
Share-based compensation | 158,628 | ¥ 158,628 | ||||||||||||||||
Balance at Dec. 31, 2015 | $ 288,114 | ¥ 1,866,336 | $ 22 | ¥ 142 | $ 312,200 | ¥ 2,022,369 | $ (1,354) | ¥ (8,773) | $ 13,815 | ¥ 89,488 | $ (51,771) | ¥ (335,363) | $ 15,202 | ¥ 98,473 | ||||
Balance, shares at Dec. 31, 2015 | shares | 334,034,932 | 84,999,159 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, the Company has five wholly owned subsidiaries in British Virgin Islands, Hong Kong, the United States of America (USA) and the People's Republic of China (PRC) and also consolidates four variable interest entities and nine subsidiaries of variable interest entities (collectively VIEs), details of which are as follows: Entity Date of establishment Place of establishment Percentage ownership by the Company Principal activities Subsidiaries Fine Brand Limited (BVI) February 9, 2011 British Virgin Islands 100 % Investment Holding 500wan HK Limited (500wan HK) March 8, 2011 Hong Kong 100 % Investment Holding 500.com USA Corporation (500.com USA) July 21, 2014 USA 100 % Investment Holding E-Sun Sky Computer (Shenzhen) Co., Ltd. (E-Sun Sky Computer) June 18, 2007 PRC 100 % Software Service Shenzhen Guangyi Network Technology Co., Ltd. (Guangyi Network) August 5, 2015 PRC 100 Online Lottery Service VIEs Shenzhen E-Sun Network Co., Ltd. (E-Sun Network) December 7, 1999 PRC - Online Lottery Service Shenzhen Youlanguang Science and Technology Co., Ltd. (Youlanguang December 16, 2008 PRC - Online Lottery Service Shenzhen Guangtiandi Science and Technology Co., Ltd. (Guangtiandi Technology) December 16, 2008 PRC - Online Lottery Service Shenzhen Tongfu Technology Co., Ltd. (Tongfu Technology) August 28, 2015 PRC - Third party payment service Shenzhen E-Sun Sky Network Technology Co., Ltd. (E-Sun Sky Network)* May 22, 2006 PRC - Online Lottery Service Shenzhen Wubai Zhifu Co.,Ltd (500Fu)** April 23, 2014 PRC - Third party payment service Lhasa Yicai Network Technology Co., Ltd. (Lhasa Yicai)** October 17, 2014 PRC - Online Lottery Service Shenzhen Yicai Network Technology Co., Ltd. (Shenzhen Yicai) ** July 21, 2015 PRC - Online Lottery Service Shenzhen Fenggu Network Technology Co., Ltd. (Shenzhen Fenggu) *** August 27, 2015 PRC - Online Lottery Service Beijing Baifengrun Science and Technology Co., Ltd. (Baifengrun June 13, 2014 PRC - Development, operation of mobile phone games Zhejiang Shangmeng Technology Co., Ltd. (Sumpay.cn)***** August 19, 2009 PRC - Software Service Shangmeng Business Services Co., Ltd. (Shangmeng Services)***** June 13, 2007 PRC - Third party payment service Hangzhou Laiqi Information Technology Co., Ltd. (Hangzhou Laiqi)***** January 9, 2015 PRC - Software Service * A subsidiary of E-Sun Network ** A subsidiary of E-Sun Sky Network *** A subsidiary of Shenzhen Yicai **** A subsidiary of Guangtiandi Technology ***** A subsidiary of Tongfu 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 Company 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 and because the Company has been determined to 1) be the most closely associated with the VIEs as it has the power to direct the activities of the VIEs that most significantly impact their economic performance, and 2) has the obligation to absorb losses and/or the right to receive benefits of the VIEs that could potentially be significant to the VIEs, the Company consolidates the VIEs as required by Accounting Standards Codification (ASC) 810 (ASC 810), Consolidation . On December 28, 2013, the Company agreed to provide unlimited financial support to the VIEs for their operations. In addition, pursuant to the power of attorney agreements entered into among the Company, 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 the Company. As a result of the assignment of power of attorney from E-Sun Sky Computer to the Company and the provision of unlimited financial support from the Company to the VIEs, the Company 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 Group's consolidated balance sheets, statements of comprehensive income (loss) and statements of cash flows are as follows: As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 330,690 141,655 21,868 Restricted cash 12,667 10,597 1,636 Short-term investments 70,182 45,540 7,030 Accounts receivable 48,550 102 16 Amounts due from intergroup companies 10,484 147,616 22,788 Prepayments and other current assets 149,256 23,676 3,654 Deferred tax assets, current portion 39,068 - - Total current assets 660,897 369,186 56,992 Non-current assets: Property and equipment, net 35,283 40,018 6,178 Intangible assets, net 1,535 198,779 30,686 Deposits 9,903 828 128 Long-term investments 5,114 30,315 4,680 Deferred tax assets, non-current 343 - - Other non-current assets 1,794 1,621 250 Goodwill - 64,899 10,019 Total non-current assets 53,972 336,460 51,941 TOTAL ASSETS 714,869 705,646 108,933 LIABILITIES Current liabilities: Account payable - 106 16 Amounts due to intergroup companies 140,856 132,938 20,522 Accrued payroll and welfare payable 24,828 14,896 2,300 Accrued expenses and other current liabilities 100,367 127,897 19,744 Income tax payable 4,680 1,061 164 Total current liabilities 270,731 276,898 42,746 Non-current liabilities: Deferred tax liability, non-current - 13,411 2,070 Long-term payables 42,540 45,380 7,006 Total non-current liabilities 42,540 58,791 9,076 TOTAL LIABILITIES 313,271 335,689 51,822 For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net revenues 182,255 447,898 87,065 13,441 Net income (loss) 19,759 185,205 (130,330 ) (20,119 ) For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net cash generated from (used in) operating activities (157,646 ) 422,702 (83,113 ) (12,831 ) Net cash generated from (used in) investing activities 156,033 (107,041 ) (105,922 ) (16,351 ) Net cash generated from (used in) financing activities 13,052 (12,802 ) - - 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, 2015. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
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, long-term investments and goodwill, the purchase price allocation and fair value of noncontrolling interests with respect to business combinations and acquisition of equity method investees, 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 6.4778 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 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 (loss). Business combinations and noncontrolling interests The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805 (ASC 805), "Business Combinations. The purchase method of accounting requires that the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities the Group acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total of cost of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over, (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity's current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. For the Company's majority-owned VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. Consolidated net income (loss) on the consolidated income statements includes the net income (loss) attributable to noncontrolling interests. The cumulative results of operations attributable to noncontrolling interests are also recorded as noncontrolling interests in the Company's consolidated balance sheets. 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 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 2,058 17,009 20,589 3,178 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 Electronics and office equipment 3 5 5 % Motor vehicles 5 10 2 5 % 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 (loss). Intangible assets Intangible assets represent computer software, internet domain name, licensing agreement, and intangible assets arising from business combination. Computer software, internet domain name and licensing agreement purchased from third parties are initially recorded at cost and amortized on a straight line basis over their estimated useful lives of the respective assets. The Group performs valuation of the intangible assets arising from business combination to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the estimated useful life of the assets. Estimated useful lives of the respective assets are set out as follows: Category Estimated Useful Life Computer software 3 10 Internet domain name 10 Licensing agreement Agreement term Intangible assets arising from business combination 15 Goodwill The Group assesses goodwill for impairment in accordance with ASC 350-20 (ASC 350-20), IntangiblesGoodwill and Other: Goodwill The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. In 2015, the Group performed a qualitative assessment for the newly acquired entities. Based on the requirements of ASC 350-20, the Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the newly acquired entities, and further impairment testing on goodwill was unnecessary as of December 31, 2015. Impairment of long-lived assets other than goodwill 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, InvestmentsDebt 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 (loss) 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 and equity method investments Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323 (ASC 323), Investments-Equity Method and Joint Ventures . Under the equity method, the Group initially records its investment at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investment to recognize the Group's proportionate share of each equity investee's net income or loss into earnings after the date of investment. The Group will discontinue applying the equity method if an investment (and additional financial supports to the investee, if any) has been reduced to zero. Under the conditions that the Group is not required to advance additional funds to an investee and the equity-method investment in ordinary shares is reduced to zero, if further investments are made that have a higher liquidation preference than ordinary shares, the Group would recognize the loss based on its percentage of the investment with the same liquidation preference, and the loss would be applied to those investments of a lower liquidation preference first before being further applied to the investments of a higher liquidation preference. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. greater than 3 5 Fair value measurements Financial instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, structured deposit (Note 5), The Group applies ASC 820 ("ASC 820"), Fair Value Measurements and Disclosures 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 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 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, 2013, 2014 and 2015 of RMB 7,526 8,198 629 97 0.56 2.27 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 (loss). Advertising expenses for the years ended December 31, 2013, 2014 and 2015 were approximately RMB 30,759 34,489 26,192 4,043 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 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 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. 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 (loss) 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 (loss) 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 (ASC 740) Income taxes 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 In conjunction with ASC 740, the Group also applied ASC 740-30 (ASC 740-30) Income Taxes: Other Considerations or Special Areas Share-based compensation Share options granted to employees and directors Share options granted to employees and directors are accounted for under ASC 718 (ASC 718) Compensation - Stock compensation Share options granted to employees and directors 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 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, 2013, 2014 and 2015, the Group expensed deferred offering expenses of Nil 3,241 Nil 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 ("ASC 260"), Earnings Per Share two 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 (loss) 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 (loss) as operating income in proportion to the depreciation of the related assets. Treasury shares The Group accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. Recent accounting pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15 Presentation of Financial Stat |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 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 87.3 79.1 85.1 For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Lottery administration center A 169,474 260,096 48,277 7,453 Lottery administration center B 75,212 198,549 36,552 5,643 Lottery administration center C 45,231 121,628 11,245 1,736 Concentration of serviced lottery products Approximately 95.9 93.2 97.4 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 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. On April 3, 2015, eight 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. As of December 31, 2015, the online lottery sales business is still not recovered. On the basis of the current level of cash and cash equivalents, time deposits and management forecasts, management believes the risk of not meeting its current obligations is low, and therefore the Group will be able to continue its operations for the foreseeable future. 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. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2015 | |
BUSINESS COMBINATION [Abstract] | |
BUSINESS COMBINATION | 4. BUSINESS COMBINATION On December 20, 2015 (the acquisition date), the Group acquired 63 o f the outstanding common shares and voting interest of Sumpay.cn and its wholly owned subsidiaries Shangmeng Services, and Hangzhou Laiqi (collectively Sumpay.cn). Sumpay.cn is a provider of online payment services and prepaid card services in PRC. The online payment service is a platform to process electronic payments, while the prepaid card services allows consumers to make purchases using the prepaid cards at participating local merchant stores. As a result of the acquisition, the Group will be able to directly provide payment processing services to its customers and diversify its revenue streams. The acquisition-date fair value of the consideration transferred totaled RMB233,100, which consisted of the following: Amount RMB Fair value of consideration transferred Cash consideration 226,800 Contingent consideration 6,300 Total 233,100 The contingent consideration arrangement requires the Group to pay RMB6,300 of additional consideration to Sumpay.cn's shareholders, if Sumpay.cn's audited 2015 operating income exceeds RMB 10,000 The fair value of the contingent consideration arrangement at the acquisition date was RMB 6,300 The Group recognized 48 of acquisition-related costs that were expensed in the current period. These costs are included in the line item General and administrative expenses in the statement of comprehensive income (loss). The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. The Group obtained a third-party valuation of certain intangible assets. Amount Amortization Years RMB Cash 133,599 Online payment and other licenses 185,698 15 Others 23,263 Total identifiable assets acquired 342,560 Advances from merchants (62,138 ) Deferred tax liabilities (13,436 ) Total liabilities assumed (75,574 ) Net identifiable assets acquired 266,986 Noncontrolling interests (98,785 ) Goodwill 64,899 Net assets acquired 233,100 Goodwill, which is not tax deductible, is primarily attributable to the synergies expected to be achieved from the acquisition. Acquired intangible assets have weighted average economic lives from the date of purchase as follows: Computer software 8.0 Online payment and other licenses 15.0 The fair value of the 37 18.61 3 Since the acquisition, Sumpay.cn contributed RMB 708 109 525 81 The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31 2014 and 2015, as if the acquisition had been completed on January 1, 2014. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the acquisition actually taken place on the date indicated and may not be indicative of future operating results. The pro forma adjustments are based upon available information and certain assumptions that management believes are reasonable. For the years ended December 31, 2014 2015 2015 RMB RMB US$ Pro forma total revenues 604,900 130,430 20,135 Pro forma net income (loss) 151,163 (327,430 ) (50,546 ) Pro forma net income (loss) attributable to 500.com Limited 153,341 (325,962 ) (50,320 ) These amounts have been calculated after applying the Company's accounting policies and adjusting the results of Sumpay.cn to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2014, together with the consequential tax effects. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | 5. INVESTMENTS Short-term Investments Short-term Investments consist of the following: Short-term investments of the Group comprised of a structured deposit investment. The Structured deposit was carried at fair value. As of December 31,2014 Original cost Gross unrealized gains Gross unrealized losses Provision for decline in value Fair value RMB RMB RMB RMB RMB Assets Short-term investments Structured deposits 71,306 - (1,124 ) - 70,182 As of December 31,2015 Original cost Gross unrealized gains Gross unrealized losses Provision for decline in value Fair value Fair value RMB RMB RMB RMB RMB US$ Assets Short-term investments Structured deposits 45,540 - - - 45,540 7,030 During the year ended December 31, 2014 and 2015, the change in fair value of the Structured deposits of RMB 1,124 Nil Long-term Investments Long-term investments consisted of the following: As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Cost Method Investments Private companies 5,114 31,351 4,840 Limited partnerships 1,538 8,092 1,249 Cost of cost method investments 6,652 39,443 6,089 Impairment loss on equity investment - (5,000 ) (772 ) Carrying amount of cost method investments 6,652 34,443 5,317 Equity Method Investments Private company - 5,500 849 Limited partnership - 20,796 3,210 Cost of equity method investments - 26,296 4,059 Loss from equity method investment - (407 ) (63 ) Carrying amount of equity method investments - 25,889 3,996 Total carrying amount of long-term investments 6,652 60,332 9,314 Cost method investments Private companies In January 2014, the Group acquired 20 5,000 In April 2014, the Group acquired 19 114 In March 2015, the Group acquired 10 2,000 In March 2015, the Group acquired 2 500 In August 2015, the Group acquired 1.29 1,373 1.29 13 477 In December 2015, as part of the acquisition of Sumpay.cn (Note 4), the Group also acquired Sumpay.cn's 15 equity interest of Shanghai Yuelin Information Technology Co., Ltd for a consideration of 600 These investments were classified as cost method investments as the Group does not have significant influence over the entities. For the year ended December 31, 2015, the Group recognized an loss of RMB5,000 purposes. Limited partnerships In June 2014, the Group and Danhua Capital L.P (Danhua) entered into a subscription agreement, whereby the Group agreed to purchase a US$ 1,000 , and hold an aggregate equity interest of approximately 1.1 As of December 31, 2014, the Group had transferred US$ 250 750 250 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. In June 2015, the Group and Beijing Heimatuoxin Venture Capital L.P. (Heimatuoxin) entered into a subscription agreement, whereby the Group agreed to purchase a RMB 3,000 3.49 3,000 Heimatuoxin's investment strategy is primarily to invest in emerging companies operating in the PRC. Heimatuoxin's investments are focused in the technology, media and telecommunications sectors. Heimatuoxin is scheduled to operate till April 16, 2021, unless terminated sooner or extended in accordance with the amended and restated limited partnership agreement. Equity method investments Private company In April 2015, the Group acquired approximately 19 5,500 Limited partnership In April 2015, the Group and Guangda Sports Culture Capital L.P (Guangda Sports Culture) entered into a subscription agreement, whereby the Group agreed to purchase a RMB 20,000 9.9 20,000 Guangda Sports Culture's investment strategy is primarily to invest in emerging companies operating in the PRC. Guangda Sports Culture's investments are focused in the sports sectors. Guangda Sports Culture is scheduled to operate till February 9, 2018, unless terminated sooner or extended in accordance with the amended and restated limited partnership agreement. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | 6. 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, 2014 2015 2015 RMB RMB US$ Accounts receivable 74,445 23,588 3,642 Less: Allowance for doubtful accounts - (19,950 ) (3,080 ) Accounts receivable, net 74,445 3,638 562 |
PREPAYMENTS, OTHER CURRENT ASSE
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | |
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS | 7. PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS Prepayments and other current assets consist of the following: As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Deposits for future lottery ticket purchase* 89,417 46 7 Receivables from third party payment service providers 17,705 888 137 Receivables from lottery administration centers for winnings 2,749 - - Interest receivables 6,441 5,189 801 Deposit for business acquisition** 20,000 - - Deferred sponsorship and advertising expenses 10,324 1,963 303 Deposits receivable from merchants*** - 6,970 1,076 Others 11,251 15,799 2,438 157,887 30,855 4,762 * 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 returned to the Group in January 2015, as the deal was cancelled. *** Deposits receivable from merchants represent cash paid in advance by Sumpay.cn to the local merchants for the prepaid card services. Deposits consist of the following: As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Deposits for lottery ticket equipment and office leases 10,071 1,217 188 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Electronics and office equipment 30,972 46,911 7,242 Motor vehicles 9,642 10,686 1,650 Leasehold improvements 26,391 29,842 4,606 Property and equipment, cost 67,005 87,439 13,498 Less: Accumulated depreciation (25,930 ) (43,245 ) (6,676 ) Property and equipment, net 41,075 44,194 6,822 Depreciation expenses were approximately RMB 7,847 8,653 10,209 1,576 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
INTANGIBLE ASSETS, NET [Abstract] | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET Intangible assets consist of the following: As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Cost: Computer software 4,785 19,343 2,987 License agreement 800 800 123 Online payment and other licenses - 185,698 28,667 Internet domain name 658 2,861 442 6,243 208,702 32,219 Accumulated amortization: Computer software (1,787 ) (6,050 ) (934 ) License agreement (800 ) (800 ) (123 ) Online payment and other licenses - (344 (53 Internet domain name (302 ) (1,360 ) (211 ) (2,889 ) (8,554 ) (1,321 ) Intangible assets, net 3,354 200,148 30,898 Amortization expenses were approximately RMB 659 1,634 1,361 210 RMB US$ 2016 14,872 2,296 2017 14,722 2,273 2018 14,307 2,209 2019 14,159 2,186 2020 and thereafter 142,088 21,934 200,148 30,898 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Advance from end users* 66,679 35,352 5,457 Advance from prepaid cards** - 62,138 9,592 Business tax and other taxes payable 4,360 675 104 Deferred government grant 14,016 11,757 1,815 Professional fees payable 11,323 9,842 1,519 Promotional events payables 10,869 5,439 840 Advertising and sponsorship payable 2,267 904 140 Contingent consideration for business combination - 6,300 973 Others 8,478 8,205 1,267 117,992 140,612 21,707 * 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. ** Advance from prepaid cards represents the unused remaining value on the prepaid cards as at the balance sheet date. |
CONVERTIBLE NOTE
CONVERTIBLE NOTE | 12 Months Ended |
Dec. 31, 2015 | |
CONVERTIBLE NOTE [Abstract] | |
CONVERTIBLE NOTE | 11. CONVERTIBLE NOTE On October 21, 2013, pursuant to a convertible note purchase agreement, the Company issued a convertible note due June 30, 2014 20,000 10 13 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 The redemption feature meets the definition of a derivative and is bifurcated from the convertible note and accounted for in accordance with ASC topic 815, Derivatives and Hedging Upon completion of the IPO, the conversion of the convertible note into US$ 25,000 19,230,769 Liabilities 3,933 26,809 Nil 30,742 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 (loss). No convertible notes were issued during the years ended December 31, 2014 and 2015. |
ACCUMULATED DEFICIT
ACCUMULATED DEFICIT | 12 Months Ended |
Dec. 31, 2015 | |
ACCUMULATED DEFICIT [Abstract] | |
ACCUMULATED DEFICIT | 12. 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 50 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, Guangyi Network, Tongfu Technology, 500Fu, Lhasa Yicai, Shenzhen Yicai, Shenzhen Fenggu, Baifengrun Technology, Sumpay.cn, Shangmeng Services, and Hangzhou Laiqi), 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 50 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 December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ PRC statutory reserved funds 33,754 29,486 4,552 Unreserved accumulated deficit (45,124 ) (364,849 ) (56,323 ) (11,370 ) (335,363 ) (51,771 ) 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 RMB 474,093 73,187 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, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 13. 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 USA no 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 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 25 25 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 15 10 10 15 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 12.5 12.5 12.5 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. 2015 was the first year of a half reduction for Guangtiandi Technology. Guangtiandi Technology is subject to EIT at the rate of 0 0 12.5 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 15 In September 2015, Shangmeng Services obtained the certificate of High-tech Enterprise and was granted a preferential income tax rate of 15 three Income (loss) before income taxes consists of: 2013 2014 2015 2015 RMB RMB RMB US$ Cayman Islands (32,227 ) (94,331 ) (163,416 ) (25,227 ) British Virgin Islands (12 ) (4 ) - - USA - - (2,320 ) (358 ) Hong Kong (297 ) (838 ) (1,470 ) (227 ) PRC 62,296 260,209 (115,034 ) (17,758 ) 29,760 165,036 (282,240 ) (43,570 ) The current and deferred components of the income tax expense appearing in the consolidated statements of comprehensive income (loss) are as follows: 2013 2014 2015 2015 RMB RMB RMB US$ Current tax expense (20,839 ) (31,918 ) (1,890 ) (292 ) Deferred tax benefit (expense) 97,133 23,931 (40,079 ) (6,187 ) Income tax benefit (expense) 76,294 (7,987 ) (41,969 ) (6,479 ) The reconciliation of tax computed by applying the statutory income tax rate applicable to PRC operations to income tax (benefit) expense is as follows: 2013 2014 2015 2015 RMB RMB RMB US$ Income(loss) before income taxes 29,760 165,036 (282,240 ) (43,570 ) Income tax computed at applicable tax rates ( 25 7,440 41,259 (70,560 ) (10,893 ) Effect of different tax rates in different jurisdictions 8,134 1,313 1,206 186 Non-deductible expenses 15,810 28,103 47,324 7,306 Effect of tax holiday (942 ) (16,170 ) - - Effect of tax rate changes (15,581 ) (38,747 ) (24,125 ) (3,724 ) Change in valuation allowance (1,900 ) 18 88,661 13,687 Changes in interest and penalties on unrecognized tax benefits 2,222 (349 ) 3,920 605 Effect of EIT reversal for previous years (2,242 ) (5,799 ) (2,099 ) (324 ) Research and development super-deduction (499 ) (1,959 ) (2,363 ) (365 ) Outside basis differences (88,796 ) - - - Others 60 318 5 1 (76,294 ) 7,987 41,969 6,479 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2013 2014 2015 2015 RMB RMB RMB US$ Balance at beginning of year 11,577 27,405 38,901 6,005 Increase relating to current year tax positions 18,843 18,014 7,496 1,157 Decrease relating to prior year tax positions (2,955 ) (5,202 ) (1,119 ) (173 ) Decrease relating to expiration of applicable statute of limitations (60 ) (1,316 ) (2,295 ) (354 ) Balance at end of year 27,405 38,901 42,983 6,635 At December 31, 2013, 2014 AND 2015, there are RMB 14,342 13,067 13,985 2,159 The Group recognizes interest and penalties accrued related to unrecognized tax benefits in taxation expenses. During the years ended December 31, 2013, 2014 and 2015, the Group recognized approximately RMB 2,463 2,119 4,534 700 241 2,469 614 95 3,313 2,963 6,884 1,063 In general, the PRC tax authorities have up to three to five years to conduct examinations of the Group's tax filings. 2012 2015 The aggregate amount and per share effect of tax holidays are as follows: 2013 2014 2015 2015 RMB RMB RMB US$ The aggregate amount 942 16,170 - - The aggregate effect on basic and diluted earnings per share for Class A and Class B ordinary shares outstanding Basic - 0.05 - - Diluted - 0.05 - - The components of deferred taxes are as follows: 2014 2015 2015 RMB RMB US$ Deferred tax assets, current portion Accrued payroll and welfare payable 3,631 2,382 368 Advertising expenditure deductible in future years 33,466 - - Deferred government grants 2,597 1,764 272 Bad debt provision - 2,977 460 Changes in fair value of the Structured deposit 169 - - Less: valuation allowance (102 ) (7,123 ) (1,100 ) Total deferred tax assets, current portion 39,761 - - Deferred tax assets, non-current portion Advertising expenditure deductible in future years - 65,305 10,081 Deferred government grants - 1,217 188 Loss from equity method investment - 102 16 Net operating losses (NOLs) 1,438 16,111 2,487 Less: valuation allowance (1,095 ) (82,735 ) (12,772 ) Total deferred tax assets, non-current portion 343 - - Deferred tax liabilities, non-current portion Online payment and other licenses arisen from business combination - (13,411 ) (2,070 ) Total deferred tax liabilities, non-current portion - (13,411 ) (2,070 ) 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, 2015, the Group had NOLs of approximately RMB 98,098 15,143 2016 2020 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 90,000 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. RMB 88,796 The cumulative amount of the temporary differences in respect of investments in foreign subsidiaries is RMB 542,027 427,340 65,970 liabilities were approximately RMB 54,203 42,734 6,597 |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2015 | |
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 RMB 8,848 10,042 12,587 1,942 |
SHARE-BASED PAYMENT
SHARE-BASED PAYMENT | 12 Months Ended |
Dec. 31, 2015 | |
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$, which is the functional currency of the Company. The board of directors has authorized under the Plan the issuance of up to 12 ten On April 8, 2011, the Company granted 13,864,000 0.40 5,506,600 5,225,800 1,565,800 1,565,800 On April 8, 2011, the Company granted 5,003,980 12,600,000 0.40 On October 22, 2013, the Company granted 2,660,000 0.40 600,000 1,620,000 220,000 220,000 On June 19, 2014, the Company granted 2,000,000 32,561,800 3.232 32.32 666,690 666,690 666,620 5,437,820 10,843,080 16,280,900 On June 29, 2015, the Company granted 200,000 1.00 66,670 66,670 66,660 A summary of share option activity and related information for the year ended December 31, 2015 is as follows: Share options granted to employees and directors Number of option Weighted average exercise price Weighted average grant date fair value per share Weighted average remaining contractual year Aggregated intrinsic value US$ US$ (Years) US$'000 Outstanding, January 1, 2015 43,139,120 2.64 1.19 4.4 Granted 200,000 2.55 1.07 Forfeited (6,000 ) 0.20 0.38 Exercised (5,274,480 ) 0.30 0.34 Outstanding, December 31, 2015 38,058,640 0.90 1.24 3.33 42,285 Vested and expected to vest at December 31, 2015 37,675,960 0.91 1.53 3.31 41,593 Exercisable at December 31, 2015 9,109,351 0.57 1.02 4.04 13,103 The aggregate intrinsic value in the table above represents the difference between the fair value of Company's common share as of December 31, 2015 and the exercise price. Total intrinsic value of options granted to employees and directors exercised for the years ended December 31, 2014 and 2015 were RMB 90,196 49,625 7,661 On June 8, 2012 (the First Modification Date), the Company modified the exercise price of both vested and unvested 13,740,000 88 0.4 0.2 In accordance with ASC 718, the effects of a modification resulted in incremental compensation cost of US$ 670 3,460 2,790 The total compensation cost measured at the First Modification Date was US$ 2,214 1,544 The incremental compensation cost of US$ 178 2,036 On March 19, 2015 (the Second Modification Date), the Company modified the exercise price of the share options granted on June 19, 2014 from US$ 3.232 32.32 1.00 10.00 In accordance with ASC 718, the effects of a modification resulted in incremental compensation cost of US$ 11,197 15,390 4,193 The total compensation cost measured at the Second Modification Date was US$ 39,829 28,632 11,197 The incremental compensation cost of US$ 213 39,616 As of December 31, 2015, there was RMB 133,322 20,581 2.4 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 (loss) 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 2013 2014 2015 Expected volatility 49.86 % 50.39 %~ 54.38 % 51.96 56.23 % Risk-free interest rate 2.60 % 0.65 %~ 1.64 % 1.06 1.64 % Dividend yield 0.00 % 0.00 % 0.00 % Forfeiture rate 0.00 % 0.00 %~ 5.00 % 0.00 % Suboptimal early exercise factor 2.2 2.2 ~ 2.8 2.8 The total fair value of the vested equity awards granted to the employees and directors during the years ended December 31, 2013, 2014 and 2015 were RMB 11,457 1,893 21,946 3,537 63,200 9,756 The exercise price of options granted during the years 2014 and 2015, equaled the market price of the ordinary shares on the grant date. The weighted-average grant-date fair value per share granted to employees and directors during the year ended December 31, 2014, and 2015 were US$ 1.35 1.07 Total share-based compensation expenses relating to options granted to employees and directors for the years ended December 31, 2013, 2014 and 2015 are included in: For the year ended December 31, 2013 Employees Directors Total Total 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 Total Total 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 For the year ended December 31, 2015 Employees Directors Total Total RMB RMB RMB US$ Cost of services 3,052 - 3,052 471 Sales and marketing 13,771 - 13,771 2,126 General and administrative 109,940 9,062 119,002 18,371 Service development expenses 22,804 - 22,804 3,520 149,567 9,062 158,629 24,488 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
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 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, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17 COMMITMENTS AND CONTINGENCIES Operating lease commitments RMB US$ 2016 5,396 833 2017 3,931 607 2018 3,865 597 2019 1,664 258 2020 and thereafter - - 14,856 2,294 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The Group's 4,931 5,279 4,013 620 Income taxes As of December 31, 2014 and 2015, the Group has recognized approximately RMB 40,287 41,981 6,481 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. Guarantees The Group Group 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 Group has not been required to make payments related to these obligations, and the fair value for these obligations is zero |
EARNINGS (LOSSES) PER SHARE
EARNINGS (LOSSES) PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 18. EARNINGS (LOSSES) PER SHARE Basic and diluted earnings per share for each of the years presented is calculated as follows: For the years ended 2013 2014 2015 RMB Class A RMB Class B RMB Class A RMB Class B RMB Class A US$ Class A RMB Class B US$ Class B Earnings (losses) per sharebasic: Numerator: Allocation of net income (loss) attributable to 500.com Limited's 2,758 103,296 74,478 82,571 (247,664 ) (38,233 ) (76,233 ) (11,768 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings (losses) per share 6,198,153 232,144,532 161,137,587 178,645,232 294,836,665 294,836,665 90,753,548 90,753,548 Denominator used for earnings (losses) per share 6,198,153 232,144,532 161,137,587 178,645,232 294,836,665 294,836,665 90,753,548 90,753,548 Earnings (losses) per sharebasic 0.45 0.45 0.46 0.46 (0.84 ) (0.13 ) (0.84 ) (0.13 ) Earnings (losses) per sharediluted: Numerator: Allocation of net income (loss) attributable to 500.com Limited's ordinary shareholders used in calculating income per ordinary share diluted 10,875 95,179 78,445 78,604 (247,664 ) (38,233 ) (76,233 ) (11,768 ) Reallocation of net income (loss) attributable to 500.com Limited's ordinary shareholders as a result of conversion of Class B to Class A shares 95,179 - 78,604 - (76,233 ) (11,768 ) - - Net income (loss) attributable to ordinary shareholders 106,054 95,179 157,049 78,604 (323,897 ) (50,001 ) (76,233 ) (11,768 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings per share 6,198,153 232,144,532 161,137,587 178,645,232 294,836,665 294,836,665 90,753,548 90,753,548 Conversion of Class B to Class A ordinary shares 232,144,532 - 178,645,232 - 90,753,548 90,753,548 - - Share options 21,386,682 - 18,065,885 - - - - - Denominator used for earnings (losses) per share 259,729,367 232,144,532 357,848,704 178,645,232 385,590,213 385,590,213 90,753,548 90,753,548 Earnings (losses) per sharediluted 0.41 0.41 0.44 0.44 (0.84 ) (0.13 ) (0.84 ) (0.13 ) Earnings per ADS: Denominator used for earnings (losses) per ADS - basic 619,815 - 16,113,759 - 29,483,667 29,483,667 - - Denominator used for earnings (losses) per ADS - diluted 25,972,937 - 35,784,870 - 38,599,021 38,599,021 - - Earnings (losses) per ADS - basic 4.45 - 4.62 - (8.40 ) (1.30 ) - - Earnings (losses) per ADS - diluted 4.08 - 4.39 - (8.40 ) (1.30 ) - - |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2015 | |
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 66,539,000 231,428,220 The Memorandum and Articles of Association were amended and restated such that the authorized share capital consisted of 1,000,000,000 0.00005 700,000,000 300,000,000 one vote per share Each share of Class B ordinary shares is entitled to ten votes per share Additionally, the Company issued 19,230,769 11,538,462 15,000 66,539,000 262,197,451 In 2014, 22,742,660 0.2 0.4 22,742,660 0.00005 8,107 254,844,582 96,634,529 In 2015, 5,274,480 0.2 1.0 5,274,480 0.00005 2,960 63,500,500 123,391 1,220,000 1,434 334,034,932 84,999,159 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2015 | |
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 5) 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, 2014 Total fair value at December 31, 2014 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) RMB RMB RMB RMB Fair value disclosure Cash equivalents Fixed-rate investments 80,000 - 80,000 - Adjustable-rate investments 30,000 - 30,000 - Time deposits 415,903 - 415,903 - Total 525,903 - 525,903 - Fair value measurement Recurring Structured deposit (Note 5) 70,182 - 70,182 - Total 70,182 - 70,182 - Assets measured or disclosed at fair value are summarized below: Fair value measurement at December 31, 2015 Total fair value at December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Cash equivalents Fixed-rate investments 240,646 37,149 - 240,646 - Adjustable-rate investments 42,501 6,561 - 42,501 - Time deposits 1,220,797 188,459 - 1,220,797 - Total 1,503,944 232,169 - 1,503,944 - Fair value measurement Recurring Structured deposit (Note 5) 45,540 7,030 - 45,540 - Total 45,540 7,030 - 45,540 - |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 21. SEGMENT REPORTING The Group engages primarily in the online lottery purchase services in the PRC. The Group does not distinguish revenues, costs and expenses between segments in its internal reporting, and reports costs and expenses by nature as a whole. In accordance with ASC topic 280 Segment Reporting , the Group's chief operating decision maker has been identified as the Board of Directors and the one The Group operates and manages its business as a single segment mainly through the provision of a single class of services for accelerating and improving the processing the lottery orders over the internet. The Group does not distinguish between markets or segments for the purpose of internal reports. 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, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS Issuance of share options In January 2016, the Company's board of directors approved a share option agreement. According to the share option agreement, the Company will grant 100,000 1.85 250,000 2.00 Share repurchase program In February 2016, the Company's board of directors approved a share repurchase program, which authorized the purchase of up to US$ 30 582,500 9.6 Legal and administrative proceedings On February 27, 2015, a purported stockholder class action lawsuit consisting of purchasers of the Company's 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 (the Court), against the Company, certain of the Company's executive officers, and the underwriters for the Company's initial public offering (collectively the Defendants). The complaint alleges that the prospectus, registration statements, and other filings with the U.S. Securities and Exchange Commission (SEC) from October 22, 2013 to February 23, 2015 contained materially false and misleading information in violation of the federal securities laws. After various amendments to the lawsuit and moves to dismiss the case by the plaintiff and the Defendants, respectively, on March 15, 2016, the Court denied the defendants' motion to dismiss, stating that the issues raised in the motion are more appropriately resolved on a motion for summary judgment. Disposal of Investment in Sumpay.cn On March 31, 2016, the Group announced that it has disposed of its 63 equity interest in Sumpay.cn for a total consideration of RMB 359,100 20 71,820 80 287,280 10 |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2015 | |
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 and/or advances. The amounts restricted include paid up capital, retained earnings and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling RMB 474,093 73,187 Condensed balance sheets As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 93,748 20,594 3,179 Time deposits 372,450 1,025,989 158,385 Other current assets 5,964 5,246 789 Amounts due from intergroup companies 51,178 252,816 39,049 Total current assets 523,340 1,304,645 201,402 Non-current assets: Investment in subsidiaries and VIEs 619,032 485,874 75,006 Property and equipment, net 462 402 62 Total non-current assets 619,494 486,276 75,068 TOTAL ASSETS 1,142,834 1,790,921 276,470 As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accrued payroll and welfare payable 62 145 22 Accrued expenses and other liabilities 11,217 8,736 1,347 Amounts due to intergroup companies 13,933 14,177 2,189 Total current liabilities 25,212 23,058 3,558 TOTAL LIABILITIES 25,212 23,058 3,558 Shareholders' equity : Class A Ordinary shares, par value US$ 0.00005 700,000,000 254,844,582 334,034,932 85 110 17 Class B Ordinary shares, par value US$ 0.00005 300,000,000 96,634,529 84,999,159 36 32 5 Additional paid-in capital 1,106,234 2,022,369 312,200 Treasury shares - (8,773 ) (1,354 ) Accumulated other comprehensive income 22,637 89,488 13,815 Accumulated deficit (11,370 ) (335,363 ) (51,771 ) Total shareholder's equity 1,117,622 1,767,863 272,912 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,142,834 1,790,921 276,470 Condensed statements of comprehensive income (loss) For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net Revenues - - - - Operating expenses: Sales and marketing - (214 ) (330 ) (51 ) General and administrative (952 ) (11,875 ) (13,160 ) (2,032 ) Write-off of deferred offering expenses - (3,241 ) - - Total operating expenses (952 ) (15,330 ) (13,490 ) (2,083 ) Operating loss (952 ) (15,330 ) (13,490 ) (2,083 ) Interest income 246 10,920 8,703 1,344 Interest expense (4,712 ) - - - Changes in fair value of derivative component of the convertible note (26,809 ) - - - Equity in profits (losses) of subsidiaries and VIEs 120,741 161,459 (319,110 ) (49,262 ) Income (loss) before income tax 88,514 157,049 (323,897 ) (50,001 ) Income tax benefit 17,540 - - - Net income (loss) 106,054 157,049 (323,897 ) (50,001 ) Other comprehensive income (loss) Foreign currency translation (loss) gain (5,496 ) 12,145 66,851 10,320 Comprehensive income (loss) 100,558 169,194 (257,046 ) (39,681 ) Condensed statements of cash flows For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net cash generated from (used in) operating activities 7,387 (26,721 ) (2,266 ) (350 ) Net cash used in investing activities (116,035 ) (293,289 ) (865,971 ) (133,683 ) Net cash generated from financing activities 479,896 42,315 748,755 115,588 Effect of exchange rate changes on cash and cash equivalents (4,812 ) 1,507 46,328 7,152 Net increase (decrease) in cash and cash equivalents 366,436 (276,188 ) (73,154 ) (11,293 ) Cash and cash equivalents at beginning of the year 3,500 369,936 93,748 14,472 Cash and cash equivalents at end of the year 369,936 93,748 20,594 3,179 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 Group's consolidated financial statements except that the parent company used the equity method to account for its investment in its subsidiaries and VIEs. The parent company records its investment in its subsidiaries and VIEs Investments-Equity Method and Joint Ventures . and VIEs zero and VIEs and VIEs The parent company's condensed financial statements should be read in conjunction with the Group's |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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, long-term investments and goodwill, the purchase price allocation and fair value of noncontrolling interests with respect to business combinations and acquisition of equity method investees, 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 6.4778 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 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 (loss). |
Business combinations and noncontrolling interests | Business combinations and noncontrolling interests The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805 (ASC 805), "Business Combinations. The purchase method of accounting requires that the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities the Group acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total of cost of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over, (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity's current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. For the Company's majority-owned VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. Consolidated net income (loss) on the consolidated income statements includes the net income (loss) attributable to noncontrolling interests. The cumulative results of operations attributable to noncontrolling interests are also recorded as noncontrolling interests in the Company's consolidated balance sheets. |
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 |
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 2,058 17,009 20,589 3,178 |
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 Electronics and office equipment 3 5 5 % Motor vehicles 5 10 2 5 % 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 (loss). |
Intangible assets | Intangible assets Intangible assets represent computer software, internet domain name, licensing agreement, and intangible assets arising from business combination. Computer software, internet domain name and licensing agreement purchased from third parties are initially recorded at cost and amortized on a straight line basis over their estimated useful lives of the respective assets. The Group performs valuation of the intangible assets arising from business combination to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are expensed or amortized using the straight-line approach over the estimated useful life of the assets. Estimated useful lives of the respective assets are set out as follows: Category Estimated Useful Life Computer software 3 10 Internet domain name 10 Licensing agreement Agreement term Intangible assets arising from business combination 15 |
Goodwill | Goodwill The Group assesses goodwill for impairment in accordance with ASC 350-20 (ASC 350-20), IntangiblesGoodwill and Other: Goodwill The Group has the option to first assess qualitative factors to determine whether it is necessary to perform the two-step test in accordance with ASC 350-20. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. In 2015, the Group performed a qualitative assessment for the newly acquired entities. Based on the requirements of ASC 350-20, the Group evaluated all relevant factors, weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the newly acquired entities, and further impairment testing on goodwill was unnecessary as of December 31, 2015. |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill 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, InvestmentsDebt 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 (loss) 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 and equity method investments Investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323 (ASC 323), Investments-Equity Method and Joint Ventures . Under the equity method, the Group initially records its investment at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investment to recognize the Group's proportionate share of each equity investee's net income or loss into earnings after the date of investment. The Group will discontinue applying the equity method if an investment (and additional financial supports to the investee, if any) has been reduced to zero. Under the conditions that the Group is not required to advance additional funds to an investee and the equity-method investment in ordinary shares is reduced to zero, if further investments are made that have a higher liquidation preference than ordinary shares, the Group would recognize the loss based on its percentage of the investment with the same liquidation preference, and the loss would be applied to those investments of a lower liquidation preference first before being further applied to the investments of a higher liquidation preference. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. greater than 3 5 |
Fair Value measurements | Fair value measurements Financial instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, structured deposit (Note 5), The Group applies ASC 820 ("ASC 820"), Fair Value Measurements and Disclosures 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 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 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, 2013, 2014 and 2015 of RMB 7,526 8,198 629 97 0.56 2.27 |
Sales and marketing expenses | 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 (loss). Advertising expenses for the years ended December 31, 2013, 2014 and 2015 were approximately RMB 30,759 34,489 26,192 4,043 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 |
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 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. |
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 (loss) 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 (loss) 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 (ASC 740) Income taxes 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 In conjunction with ASC 740, the Group also applied ASC 740-30 (ASC 740-30) Income Taxes: Other Considerations or Special Areas |
Share-based compensation | Share-based compensation Share options granted to employees and directors Share options granted to employees and directors are accounted for under ASC 718 (ASC 718) Compensation - Stock compensation Share options granted to employees and directors 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 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, 2013, 2014 and 2015, the Group expensed deferred offering expenses of Nil 3,241 Nil 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 ("ASC 260"), Earnings Per Share two 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 (loss) 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 (loss) as operating income in proportion to the depreciation of the related assets. |
Treasury shares | Treasury shares The Group accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. |
Recent accounting pronouncements | Recent accounting pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15 Presentation of Financial StatementsGoing Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (ASU 2014-15). The guidance requires an entity to evaluate whether there are conditions or events, in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued and to provide related footnote disclosures in certain circumstances. The guidance is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a significant impact on the Group's consolidated financial statements. In March 2015, the FASB issued ASU No. 2015-03, Interest Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). The guidance is to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability and will make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The guidance is effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Group's consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) Amendments to the Consolidation Analysis (ASU 2015-02) . The amendments in ASU 2015-02 respond to stakeholders' concerns about the current accounting for consolidation of variable interest entities, by changing aspects of the analysis that a reporting entity must perform to determine whether it should consolidate such entities. Under the amendments, all reporting entities are within the scope of Subtopic 810-10, ConsolidationOverall, including limited partnerships and similar legal entities, unless a scope exception applies. The amendments are intended to be an improvement to current U.S. GAAP, as they simplify the codification of FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R), with changes including reducing the number of consolidation models through the elimination of the indefinite deferral of Statement 167 and placing more emphasis on risk of loss when determining a controlling financial interest. The amendments are effective for publicly-traded companies for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. Earlier adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Group's consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers-Deferral of the effective date (ASU 2015-14). The amendments in ASU 2015-14 defer the effective date of ASU No. 2014-09, Revenue from Contracts with Customers issued in May 2014. According to the amendments in ASU 2015-14, the new revenue guidance ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Group is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements and considering additional disclosure requirements. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , which eliminates the requirement for acquirers in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts that would have been recorded in previous periods if the accounting had been completed at the acquisition date. This update is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The implementation of this update is not expected to have any material impact on the Group's consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17). ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Group's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02). ASU 2016-02 specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. ASU 2016-02 is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Group is currently evaluating the impact of adopting this standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, InvestmentsEquity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement to retrospectively apply the equity method in previous periods. Instead, the investor must apply the equity method prospectively from the date the investment qualifies for the equity method. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016 with early adoption permitted. The Group is currently evaluating the impact of adopting this standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) . The new update will require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also will allow an employer to repurchase more of an employee's shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The guidance is effective for the Group on January 1, 2017. Early application is permitted in any annual or interim period for which financial statements haven't been issued or made available for issuance, but all of the guidance must be adopted in the same period. The Group is currently evaluating the impact of adopting this standard on its consolidated financial statements. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Variable Interest Entity | Entity Date of establishment Place of establishment Percentage ownership by the Company Principal activities Subsidiaries Fine Brand Limited (BVI) February 9, 2011 British Virgin Islands 100 % Investment Holding 500wan HK Limited (500wan HK) March 8, 2011 Hong Kong 100 % Investment Holding 500.com USA Corporation (500.com USA) July 21, 2014 USA 100 % Investment Holding E-Sun Sky Computer (Shenzhen) Co., Ltd. (E-Sun Sky Computer) June 18, 2007 PRC 100 % Software Service Shenzhen Guangyi Network Technology Co., Ltd. (Guangyi Network) August 5, 2015 PRC 100 Online Lottery Service VIEs Shenzhen E-Sun Network Co., Ltd. (E-Sun Network) December 7, 1999 PRC - Online Lottery Service Shenzhen Youlanguang Science and Technology Co., Ltd. (Youlanguang December 16, 2008 PRC - Online Lottery Service Shenzhen Guangtiandi Science and Technology Co., Ltd. (Guangtiandi Technology) December 16, 2008 PRC - Online Lottery Service Shenzhen Tongfu Technology Co., Ltd. (Tongfu Technology) August 28, 2015 PRC - Third party payment service Shenzhen E-Sun Sky Network Technology Co., Ltd. (E-Sun Sky Network)* May 22, 2006 PRC - Online Lottery Service Shenzhen Wubai Zhifu Co.,Ltd (500Fu)** April 23, 2014 PRC - Third party payment service Lhasa Yicai Network Technology Co., Ltd. (Lhasa Yicai)** October 17, 2014 PRC - Online Lottery Service Shenzhen Yicai Network Technology Co., Ltd. (Shenzhen Yicai) ** July 21, 2015 PRC - Online Lottery Service Shenzhen Fenggu Network Technology Co., Ltd. (Shenzhen Fenggu) *** August 27, 2015 PRC - Online Lottery Service Beijing Baifengrun Science and Technology Co., Ltd. (Baifengrun June 13, 2014 PRC - Development, operation of mobile phone games Zhejiang Shangmeng Technology Co., Ltd. (Sumpay.cn)***** August 19, 2009 PRC - Software Service Shangmeng Business Services Co., Ltd. (Shangmeng Services)***** June 13, 2007 PRC - Third party payment service Hangzhou Laiqi Information Technology Co., Ltd. (Hangzhou Laiqi)***** January 9, 2015 PRC - Software Service * A subsidiary of E-Sun Network ** A subsidiary of E-Sun Sky Network *** A subsidiary of Shenzhen Yicai **** A subsidiary of Guangtiandi Technology ***** A subsidiary of Tongfu Technology |
Variable Interest Entity, Primary Beneficiary [Member] | |
Carrying Amounts of Assets and Liabilities, Results of Operations and Cash Flows of VIEs | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 330,690 141,655 21,868 Restricted cash 12,667 10,597 1,636 Short-term investments 70,182 45,540 7,030 Accounts receivable 48,550 102 16 Amounts due from intergroup companies 10,484 147,616 22,788 Prepayments and other current assets 149,256 23,676 3,654 Deferred tax assets, current portion 39,068 - - Total current assets 660,897 369,186 56,992 Non-current assets: Property and equipment, net 35,283 40,018 6,178 Intangible assets, net 1,535 198,779 30,686 Deposits 9,903 828 128 Long-term investments 5,114 30,315 4,680 Deferred tax assets, non-current 343 - - Other non-current assets 1,794 1,621 250 Goodwill - 64,899 10,019 Total non-current assets 53,972 336,460 51,941 TOTAL ASSETS 714,869 705,646 108,933 LIABILITIES Current liabilities: Account payable - 106 16 Amounts due to intergroup companies 140,856 132,938 20,522 Accrued payroll and welfare payable 24,828 14,896 2,300 Accrued expenses and other current liabilities 100,367 127,897 19,744 Income tax payable 4,680 1,061 164 Total current liabilities 270,731 276,898 42,746 Non-current liabilities: Deferred tax liability, non-current - 13,411 2,070 Long-term payables 42,540 45,380 7,006 Total non-current liabilities 42,540 58,791 9,076 TOTAL LIABILITIES 313,271 335,689 51,822 For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net revenues 182,255 447,898 87,065 13,441 Net income (loss) 19,759 185,205 (130,330 ) (20,119 ) For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net cash generated from (used in) operating activities (157,646 ) 422,702 (83,113 ) (12,831 ) Net cash generated from (used in) investing activities 156,033 (107,041 ) (105,922 ) (16,351 ) Net cash generated from (used in) financing activities 13,052 (12,802 ) - - |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Property and Equipment | Category Estimated Useful Life Estimated Residual Electronics and office equipment 3 5 5 % Motor vehicles 5 10 2 5 % 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 Internet domain name 10 Licensing agreement Agreement term Intangible assets arising from business combination 15 |
CONCENTRATION OF RISKS (Tables)
CONCENTRATION OF RISKS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CONCENTRATION OF RISKS [Abstract] | |
Significance of Service Fees Received from Lottery Administration Centers | For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Lottery administration center A 169,474 260,096 48,277 7,453 Lottery administration center B 75,212 198,549 36,552 5,643 Lottery administration center C 45,231 121,628 11,245 1,736 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
BUSINESS COMBINATION [Abstract] | |
Schedule of fair value of the consideration transferred at the acquisition date | Amount RMB Fair value of consideration transferred Cash consideration 226,800 Contingent consideration 6,300 Total 233,100 |
Summary of the fair values of the assets acquired and liabilities assumed at the acquisition date | Amount Amortization Years RMB Cash 133,599 Online payment and other licenses 185,698 15 Others 23,263 Total identifiable assets acquired 342,560 Advances from merchants (62,138 ) Deferred tax liabilities (13,436 ) Total liabilities assumed (75,574 ) Net identifiable assets acquired 266,986 Noncontrolling interests (98,785 ) Goodwill 64,899 Net assets acquired 233,100 |
Schedule of acquired intangible assets have weighted average economic lives | Computer software 8.0 Online payment and other licenses 15.0 |
Summary of unaudited pro forma information | For the years ended December 31, 2014 2015 2015 RMB RMB US$ Pro forma total revenues 604,900 130,430 20,135 Pro forma net income (loss) 151,163 (327,430 ) (50,546 ) Pro forma net income (loss) attributable to 500.com Limited 153,341 (325,962 ) (50,320 ) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENTS [Abstract] | |
Schedule of short term investments | As of December 31,2014 Original cost Gross unrealized gains Gross unrealized losses Provision for decline in value Fair value RMB RMB RMB RMB RMB Assets Short-term investments Structured deposits 71,306 - (1,124 ) - 70,182 As of December 31,2015 Original cost Gross unrealized gains Gross unrealized losses Provision for decline in value Fair value Fair value RMB RMB RMB RMB RMB US$ Assets Short-term investments Structured deposits 45,540 - - - 45,540 7,030 |
Schedule of long term investments | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Cost Method Investments Private companies 5,114 31,351 4,840 Limited partnerships 1,538 8,092 1,249 Cost of cost method investments 6,652 39,443 6,089 Impairment loss on equity investment - (5,000 ) (772 ) Carrying amount of cost method investments 6,652 34,443 5,317 Equity Method Investments Private company - 5,500 849 Limited partnership - 20,796 3,210 Cost of equity method investments - 26,296 4,059 Loss from equity method investment - (407 ) (63 ) Carrying amount of equity method investments - 25,889 3,996 Total carrying amount of long-term investments 6,652 60,332 9,314 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE [Abstract] | |
Accounts Receivable and Related Allowance for Doubtful Accounts | As of As of As of December 31, December 31, December 31, 2014 2015 2015 RMB RMB US$ Accounts receivable 74,445 23,588 3,642 Less: Allowance for doubtful accounts - (19,950 ) (3,080 ) Accounts receivable, net 74,445 3,638 562 |
PREPAYMENTS, OTHER CURRENT AS37
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | |
Summary of Prepayments and Other Current Assets | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Deposits for future lottery ticket purchase* 89,417 46 7 Receivables from third party payment service providers 17,705 888 137 Receivables from lottery administration centers for winnings 2,749 - - Interest receivables 6,441 5,189 801 Deposit for business acquisition** 20,000 - - Deferred sponsorship and advertising expenses 10,324 1,963 303 Deposits receivable from merchants*** - 6,970 1,076 Others 11,251 15,799 2,438 157,887 30,855 4,762 * 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 returned to the Group in January 2015, as the deal was cancelled. *** Deposits receivable from merchants represent cash paid in advance by Sumpay.cn to the local merchants for the prepaid card services. |
Summary of Deposits | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Deposits for lottery ticket equipment and office leases 10,071 1,217 188 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Schedule of Property and Equipment | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Electronics and office equipment 30,972 46,911 7,242 Motor vehicles 9,642 10,686 1,650 Leasehold improvements 26,391 29,842 4,606 Property and equipment, cost 67,005 87,439 13,498 Less: Accumulated depreciation (25,930 ) (43,245 ) (6,676 ) Property and equipment, net 41,075 44,194 6,822 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Schedule of Intangible Assets | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Cost: Computer software 4,785 19,343 2,987 License agreement 800 800 123 Online payment and other licenses - 185,698 28,667 Internet domain name 658 2,861 442 6,243 208,702 32,219 Accumulated amortization: Computer software (1,787 ) (6,050 ) (934 ) License agreement (800 ) (800 ) (123 ) Online payment and other licenses - (344 (53 Internet domain name (302 ) (1,360 ) (211 ) (2,889 ) (8,554 ) (1,321 ) Intangible assets, net 3,354 200,148 30,898 |
Schedule of Estimated Amortization Expense | RMB US$ 2016 14,872 2,296 2017 14,722 2,273 2018 14,307 2,209 2019 14,159 2,186 2020 and thereafter 142,088 21,934 200,148 30,898 |
ACCRUED EXPENSES AND OTHER CU40
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ Advance from end users* 66,679 35,352 5,457 Advance from prepaid cards** - 62,138 9,592 Business tax and other taxes payable 4,360 675 104 Deferred government grant 14,016 11,757 1,815 Professional fees payable 11,323 9,842 1,519 Promotional events payables 10,869 5,439 840 Advertising and sponsorship payable 2,267 904 140 Contingent consideration for business combination - 6,300 973 Others 8,478 8,205 1,267 117,992 140,612 21,707 * 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. ** Advance from prepaid cards represents the unused remaining value on the prepaid cards as at the balance sheet date. |
CONVERTIBLE NOTE (Tables)
CONVERTIBLE NOTE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 | |
ACCUMULATED DEFICIT [Abstract] | |
Schedule of Accumulated Deficit | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ PRC statutory reserved funds 33,754 29,486 4,552 Unreserved accumulated deficit (45,124 ) (364,849 ) (56,323 ) (11,370 ) (335,363 ) (51,771 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
Schedule of Income (Loss) before Income Taxes | 2013 2014 2015 2015 RMB RMB RMB US$ Cayman Islands (32,227 ) (94,331 ) (163,416 ) (25,227 ) British Virgin Islands (12 ) (4 ) - - USA - - (2,320 ) (358 ) Hong Kong (297 ) (838 ) (1,470 ) (227 ) PRC 62,296 260,209 (115,034 ) (17,758 ) 29,760 165,036 (282,240 ) (43,570 ) |
Schedule of Current and Deferred Components | 2013 2014 2015 2015 RMB RMB RMB US$ Current tax expense (20,839 ) (31,918 ) (1,890 ) (292 ) Deferred tax benefit (expense) 97,133 23,931 (40,079 ) (6,187 ) Income tax benefit (expense) 76,294 (7,987 ) (41,969 ) (6,479 ) |
Reconciliation of Tax Computed Applying Statutory Income Tax Rate | 2013 2014 2015 2015 RMB RMB RMB US$ Income(loss) before income taxes 29,760 165,036 (282,240 ) (43,570 ) Income tax computed at applicable tax rates ( 25 7,440 41,259 (70,560 ) (10,893 ) Effect of different tax rates in different jurisdictions 8,134 1,313 1,206 186 Non-deductible expenses 15,810 28,103 47,324 7,306 Effect of tax holiday (942 ) (16,170 ) - - Effect of tax rate changes (15,581 ) (38,747 ) (24,125 ) (3,724 ) Change in valuation allowance (1,900 ) 18 88,661 13,687 Changes in interest and penalties on unrecognized tax benefits 2,222 (349 ) 3,920 605 Effect of EIT reversal for previous years (2,242 ) (5,799 ) (2,099 ) (324 ) Research and development super-deduction (499 ) (1,959 ) (2,363 ) (365 ) Outside basis differences (88,796 ) - - - Others 60 318 5 1 (76,294 ) 7,987 41,969 6,479 |
Schedule of Unrecognized Tax Benefits Reconciliation | 2013 2014 2015 2015 RMB RMB RMB US$ Balance at beginning of year 11,577 27,405 38,901 6,005 Increase relating to current year tax positions 18,843 18,014 7,496 1,157 Decrease relating to prior year tax positions (2,955 ) (5,202 ) (1,119 ) (173 ) Decrease relating to expiration of applicable statute of limitations (60 ) (1,316 ) (2,295 ) (354 ) Balance at end of year 27,405 38,901 42,983 6,635 |
Summary of Aggregate Amount and per Share Effect of Tax Holidays | 2013 2014 2015 2015 RMB RMB RMB US$ The aggregate amount 942 16,170 - - The aggregate effect on basic and diluted earnings per share for Class A and Class B ordinary shares outstanding Basic - 0.05 - - Diluted - 0.05 - - |
Components of Deferred Taxes | 2014 2015 2015 RMB RMB US$ Deferred tax assets, current portion Accrued payroll and welfare payable 3,631 2,382 368 Advertising expenditure deductible in future years 33,466 - - Deferred government grants 2,597 1,764 272 Bad debt provision - 2,977 460 Changes in fair value of the Structured deposit 169 - - Less: valuation allowance (102 ) (7,123 ) (1,100 ) Total deferred tax assets, current portion 39,761 - - Deferred tax assets, non-current portion Advertising expenditure deductible in future years - 65,305 10,081 Deferred government grants - 1,217 188 Loss from equity method investment - 102 16 Net operating losses (NOLs) 1,438 16,111 2,487 Less: valuation allowance (1,095 ) (82,735 ) (12,772 ) Total deferred tax assets, non-current portion 343 - - Deferred tax liabilities, non-current portion Online payment and other licenses arisen from business combination - (13,411 ) (2,070 ) Total deferred tax liabilities, non-current portion - (13,411 ) (2,070 ) |
SHARE-BASED PAYMENT (Tables)
SHARE-BASED PAYMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHARE-BASED PAYMENT [Abstract] | |
Summary of Share Option Activity and Related Information | Share options granted to employees and directors Number of option Weighted average exercise price Weighted average grant date fair value per share Weighted average remaining contractual year Aggregated intrinsic value US$ US$ (Years) US$'000 Outstanding, January 1, 2015 43,139,120 2.64 1.19 4.4 Granted 200,000 2.55 1.07 Forfeited (6,000 ) 0.20 0.38 Exercised (5,274,480 ) 0.30 0.34 Outstanding, December 31, 2015 38,058,640 0.90 1.24 3.33 42,285 Vested and expected to vest at December 31, 2015 37,675,960 0.91 1.53 3.31 41,593 Exercisable at December 31, 2015 9,109,351 0.57 1.02 4.04 13,103 |
Schedule of Assumptions Used to Estimate Fair Value of Share Options Granted | For the years ended December 31 2013 2014 2015 Expected volatility 49.86 % 50.39 %~ 54.38 % 51.96 56.23 % Risk-free interest rate 2.60 % 0.65 %~ 1.64 % 1.06 1.64 % Dividend yield 0.00 % 0.00 % 0.00 % Forfeiture rate 0.00 % 0.00 %~ 5.00 % 0.00 % Suboptimal early exercise factor 2.2 2.2 ~ 2.8 2.8 |
Schedule of Share-Based Compensation Expenses Relating to Options Granted | For the year ended December 31, 2013 Employees Directors Total Total RMB RMB RMB US$ 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 Total Total 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 For the year ended December 31, 2015 Employees Directors Total Total RMB RMB RMB US$ Cost of services 3,052 - 3,052 471 Sales and marketing 13,771 - 13,771 2,126 General and administrative 109,940 9,062 119,002 18,371 Service development expenses 22,804 - 22,804 3,520 149,567 9,062 158,629 24,488 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Operating Lease Commitments | RMB US$ 2016 5,396 833 2017 3,931 607 2018 3,865 597 2019 1,664 258 2020 and thereafter - - 14,856 2,294 |
EARNINGS (LOSSES) PER SHARE (Ta
EARNINGS (LOSSES) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | For the years ended 2013 2014 2015 RMB Class A RMB Class B RMB Class A RMB Class B RMB Class A US$ Class A RMB Class B US$ Class B Earnings (losses) per sharebasic: Numerator: Allocation of net income (loss) attributable to 500.com Limited's 2,758 103,296 74,478 82,571 (247,664 ) (38,233 ) (76,233 ) (11,768 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings (losses) per share 6,198,153 232,144,532 161,137,587 178,645,232 294,836,665 294,836,665 90,753,548 90,753,548 Denominator used for earnings (losses) per share 6,198,153 232,144,532 161,137,587 178,645,232 294,836,665 294,836,665 90,753,548 90,753,548 Earnings (losses) per sharebasic 0.45 0.45 0.46 0.46 (0.84 ) (0.13 ) (0.84 ) (0.13 ) Earnings (losses) per sharediluted: Numerator: Allocation of net income (loss) attributable to 500.com Limited's ordinary shareholders used in calculating income per ordinary share diluted 10,875 95,179 78,445 78,604 (247,664 ) (38,233 ) (76,233 ) (11,768 ) Reallocation of net income (loss) attributable to 500.com Limited's ordinary shareholders as a result of conversion of Class B to Class A shares 95,179 - 78,604 - (76,233 ) (11,768 ) - - Net income (loss) attributable to ordinary shareholders 106,054 95,179 157,049 78,604 (323,897 ) (50,001 ) (76,233 ) (11,768 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings per share 6,198,153 232,144,532 161,137,587 178,645,232 294,836,665 294,836,665 90,753,548 90,753,548 Conversion of Class B to Class A ordinary shares 232,144,532 - 178,645,232 - 90,753,548 90,753,548 - - Share options 21,386,682 - 18,065,885 - - - - - Denominator used for earnings (losses) per share 259,729,367 232,144,532 357,848,704 178,645,232 385,590,213 385,590,213 90,753,548 90,753,548 Earnings (losses) per sharediluted 0.41 0.41 0.44 0.44 (0.84 ) (0.13 ) (0.84 ) (0.13 ) Earnings per ADS: Denominator used for earnings (losses) per ADS - basic 619,815 - 16,113,759 - 29,483,667 29,483,667 - - Denominator used for earnings (losses) per ADS - diluted 25,972,937 - 35,784,870 - 38,599,021 38,599,021 - - Earnings (losses) per ADS - basic 4.45 - 4.62 - (8.40 ) (1.30 ) - - Earnings (losses) per ADS - diluted 4.08 - 4.39 - (8.40 ) (1.30 ) - - |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENT [Abstract] | |
Summary of assets measured or disclosed at fair value | Fair value measurement at December 31, 2014 Total fair value at December 31, 2014 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) RMB RMB RMB RMB Fair value disclosure Cash equivalents Fixed-rate investments 80,000 - 80,000 - Adjustable-rate investments 30,000 - 30,000 - Time deposits 415,903 - 415,903 - Total 525,903 - 525,903 - Fair value measurement Recurring Structured deposit (Note 5) 70,182 - 70,182 - Total 70,182 - 70,182 - Assets measured or disclosed at fair value are summarized below: Fair value measurement at December 31, 2015 Total fair value at December 31, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Cash equivalents Fixed-rate investments 240,646 37,149 - 240,646 - Adjustable-rate investments 42,501 6,561 - 42,501 - Time deposits 1,220,797 188,459 - 1,220,797 - Total 1,503,944 232,169 - 1,503,944 - Fair value measurement Recurring Structured deposit (Note 5) 45,540 7,030 - 45,540 - Total 45,540 7,030 - 45,540 - |
CONDENSED FINANCIAL INFORMATI48
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Condensed Balance Sheets | As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 93,748 20,594 3,179 Time deposits 372,450 1,025,989 158,385 Other current assets 5,964 5,246 789 Amounts due from intergroup companies 51,178 252,816 39,049 Total current assets 523,340 1,304,645 201,402 Non-current assets: Investment in subsidiaries and VIEs 619,032 485,874 75,006 Property and equipment, net 462 402 62 Total non-current assets 619,494 486,276 75,068 TOTAL ASSETS 1,142,834 1,790,921 276,470 As of December 31, 2014 As of December 31, 2015 As of December 31, 2015 RMB RMB US$ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accrued payroll and welfare payable 62 145 22 Accrued expenses and other liabilities 11,217 8,736 1,347 Amounts due to intergroup companies 13,933 14,177 2,189 Total current liabilities 25,212 23,058 3,558 TOTAL LIABILITIES 25,212 23,058 3,558 Shareholders' equity : Class A Ordinary shares, par value US$ 0.00005 700,000,000 254,844,582 334,034,932 85 110 17 Class B Ordinary shares, par value US$ 0.00005 300,000,000 96,634,529 84,999,159 36 32 5 Additional paid-in capital 1,106,234 2,022,369 312,200 Treasury shares - (8,773 ) (1,354 ) Accumulated other comprehensive income 22,637 89,488 13,815 Accumulated deficit (11,370 ) (335,363 ) (51,771 ) Total shareholder's equity 1,117,622 1,767,863 272,912 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,142,834 1,790,921 276,470 |
Schedule of Condensed Statements of Comprehensive Income (loss) | For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net Revenues - - - - Operating expenses: Sales and marketing - (214 ) (330 ) (51 ) General and administrative (952 ) (11,875 ) (13,160 ) (2,032 ) Write-off of deferred offering expenses - (3,241 ) - - Total operating expenses (952 ) (15,330 ) (13,490 ) (2,083 ) Operating loss (952 ) (15,330 ) (13,490 ) (2,083 ) Interest income 246 10,920 8,703 1,344 Interest expense (4,712 ) - - - Changes in fair value of derivative component of the convertible note (26,809 ) - - - Equity in profits (losses) of subsidiaries and VIEs 120,741 161,459 (319,110 ) (49,262 ) Income (loss) before income tax 88,514 157,049 (323,897 ) (50,001 ) Income tax benefit 17,540 - - - Net income (loss) 106,054 157,049 (323,897 ) (50,001 ) Other comprehensive income (loss) Foreign currency translation (loss) gain (5,496 ) 12,145 66,851 10,320 Comprehensive income (loss) 100,558 169,194 (257,046 ) (39,681 ) |
Schedule of Condensed Statements of Cash Flows | For the years ended December 31, 2013 2014 2015 2015 RMB RMB RMB US$ Net cash generated from (used in) operating activities 7,387 (26,721 ) (2,266 ) (350 ) Net cash used in investing activities (116,035 ) (293,289 ) (865,971 ) (133,683 ) Net cash generated from financing activities 479,896 42,315 748,755 115,588 Effect of exchange rate changes on cash and cash equivalents (4,812 ) 1,507 46,328 7,152 Net increase (decrease) in cash and cash equivalents 366,436 (276,188 ) (73,154 ) (11,293 ) Cash and cash equivalents at beginning of the year 3,500 369,936 93,748 14,472 Cash and cash equivalents at end of the year 369,936 93,748 20,594 3,179 |
ORGANIZATION (Schedule of Varia
ORGANIZATION (Schedule of Variable Interest Entity) (Details) | 12 Months Ended | |
Dec. 31, 2015 | ||
BVI [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Feb. 9, 2011 | |
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 | Mar. 8, 2011 | |
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 | Jul. 21, 2014 | |
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 | Jun. 18, 2007 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | 100.00% | |
Principal activities | Software Service | |
Guangyi Network [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Aug. 5, 2015 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | 100.00% | |
Principal activities | Online Lottery Service | |
E-Sun Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Dec. 7, 1999 | |
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 | Dec. 16, 2008 | |
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 | Dec. 16, 2008 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | ||
Principal activities | Online Lottery Service | |
Tongfu Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Aug. 28, 2015 | |
Place of establishment | PRC | |
Percentage of ownership by the Company | ||
Principal activities | Third party payment service | |
E-Sun Sky Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | May 22, 2006 | [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 | Apr. 23, 2014 | [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 | Oct. 17, 2014 | [2] |
Place of establishment | PRC | [2] |
Percentage of ownership by the Company | [2] | |
Principal activities | Online Lottery Service | [2] |
Shenzhen Yicai [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Jul. 21, 2015 | [2] |
Place of establishment | PRC | [2] |
Percentage of ownership by the Company | [2] | |
Principal activities | Online Lottery Service | [2] |
Shenzhen Fenggu [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Aug. 27, 2015 | [3] |
Place of establishment | PRC | [3] |
Percentage of ownership by the Company | [3] | |
Principal activities | Online Lottery Service | [3] |
Baifengrun Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Jun. 13, 2014 | [4] |
Place of establishment | PRC | [4] |
Percentage of ownership by the Company | [4] | |
Principal activities | Development, operation of mobile phone games | [4] |
Sumpay.cn [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Aug. 19, 2009 | [5] |
Place of establishment | PRC | [5] |
Percentage of ownership by the Company | [5] | |
Principal activities | Software Service | [5] |
Shangmeng Services [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Jun. 13, 2007 | [5] |
Place of establishment | PRC | [5] |
Percentage of ownership by the Company | [5] | |
Principal activities | Third party payment service | [5] |
Hangzhou Laiqi [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Jan. 9, 2015 | [5] |
Place of establishment | PRC | [5] |
Percentage of ownership by the Company | [5] | |
Principal activities | Software Service | [5] |
[1] | A subsidiary of E-Sun Network | |
[2] | A subsidiary of E-Sun Sky Network | |
[3] | A subsidiary of Shenzhen Yicai | |
[4] | A subsidiary of Guangtiandi Technology | |
[5] | A subsidiary of Tongfu Technology |
ORGANIZATION (Carrying Amounts
ORGANIZATION (Carrying Amounts of Assets and Liabilities of VIEs) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2012CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | $ 61,851 | ¥ 400,657 | $ 74,957 | ¥ 485,556 | ¥ 544,318 | ¥ 31,555 |
Restricted cash | 1,636 | 10,599 | 12,669 | |||
Short-term investments | 7,030 | 45,540 | 70,182 | |||
Accounts receivable | 562 | 3,638 | 74,445 | |||
Prepayments and other current assets | $ 4,762 | ¥ 30,855 | 157,887 | |||
Deferred tax assets, current portion | 39,761 | |||||
Total current assets | $ 264,300 | ¥ 1,712,086 | 1,256,403 | |||
Non-current assets: | ||||||
Property and equipment, net | 6,822 | 44,194 | 41,075 | |||
Intangible assets, net | 30,898 | 200,148 | 3,354 | |||
Deposits | 188 | 1,217 | 10,071 | |||
Long-term investments | $ 9,314 | ¥ 60,332 | 6,652 | |||
Deferred tax assets, non-current | 343 | |||||
Other non-current assets | $ 250 | ¥ 1,621 | ¥ 1,794 | |||
Goodwill | 10,019 | 64,899 | ||||
Total non-current assets | 57,491 | 372,411 | ¥ 63,289 | |||
TOTAL ASSETS | 321,791 | 2,084,497 | ¥ 1,319,692 | |||
Current liabilities: | ||||||
Accounts payable | 16 | 106 | ||||
Accrued payroll and welfare payable | 2,453 | 15,890 | ¥ 30,634 | |||
Accrued expenses and other current liabilities | 21,707 | 140,612 | 117,992 | |||
Income taxes payable | 187 | 1,214 | 9,250 | |||
Total current liabilities | 24,363 | 157,822 | ¥ 157,876 | |||
Non-current liabilities: | ||||||
Deferred tax liability, non-current | 2,070 | 13,411 | ||||
Long-term payables | 7,244 | 46,928 | ¥ 44,194 | |||
Total non-current liabilities | 9,314 | 60,339 | 44,194 | |||
TOTAL LIABILITIES | 33,677 | 218,161 | 202,070 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 21,868 | 141,655 | 330,690 | |||
Restricted cash | 1,636 | 10,597 | 12,667 | |||
Short-term investments | 7,030 | 45,540 | 70,182 | |||
Accounts receivable | 16 | 102 | 48,550 | |||
Amounts due from intergroup companies | 22,788 | 147,616 | 10,484 | |||
Prepayments and other current assets | $ 3,654 | ¥ 23,676 | 149,256 | |||
Deferred tax assets, current portion | 39,068 | |||||
Total current assets | $ 56,992 | ¥ 369,186 | 660,897 | |||
Non-current assets: | ||||||
Property and equipment, net | 6,178 | 40,018 | 35,283 | |||
Intangible assets, net | 30,686 | 198,779 | 1,535 | |||
Deposits | 128 | 828 | 9,903 | |||
Long-term investments | $ 4,680 | ¥ 30,315 | 5,114 | |||
Deferred tax assets, non-current | 343 | |||||
Other non-current assets | $ 250 | ¥ 1,621 | ¥ 1,794 | |||
Goodwill | 10,019 | 64,899 | ||||
Total non-current assets | 51,941 | 336,460 | ¥ 53,972 | |||
TOTAL ASSETS | 108,933 | 705,646 | ¥ 714,869 | |||
Current liabilities: | ||||||
Accounts payable | 16 | 106 | ||||
Amounts due to intergroup companies | 20,522 | 132,938 | ¥ 140,856 | |||
Accrued payroll and welfare payable | 2,300 | 14,896 | 24,828 | |||
Accrued expenses and other current liabilities | 19,744 | 127,897 | 100,367 | |||
Income taxes payable | 164 | 1,061 | 4,680 | |||
Total current liabilities | 42,746 | 276,898 | ¥ 270,731 | |||
Non-current liabilities: | ||||||
Deferred tax liability, non-current | 2,070 | 13,411 | ||||
Long-term payables | 7,006 | 45,380 | ¥ 42,540 | |||
Total non-current liabilities | 9,076 | 58,791 | 42,540 | |||
TOTAL LIABILITIES | $ 51,822 | ¥ 335,689 | ¥ 313,271 |
ORGANIZATION (Results of Operat
ORGANIZATION (Results of Operations of VIEs) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Net revenues | $ 15,368 | ¥ 99,552 | ¥ 579,717 | ¥ 259,534 |
Net income (loss) | (50,049) | (324,209) | 157,049 | 106,054 |
Net cash generated from (used in) operating activities | 6,542 | 42,375 | 250,553 | 29,170 |
Net cash generated from (used in) investing activities | (142,343) | (922,063) | (395,744) | 51,965 |
Net cash generated from (used in) financing activities | 115,543 | 748,461 | 84,922 | 436,440 |
VIEs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Net revenues | 13,441 | 87,065 | 447,898 | 182,255 |
Net income (loss) | (20,119) | (130,330) | 185,205 | 19,759 |
Net cash generated from (used in) operating activities | (12,831) | (83,113) | 422,702 | (157,646) |
Net cash generated from (used in) investing activities | $ (16,351) | ¥ (105,922) | (107,041) | 156,033 |
Net cash generated from (used in) financing activities | ¥ (12,802) | ¥ 13,052 |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2015CNY (¥) | |
Summary Of Accounting Policies [Line Items] | |||||
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 | |
Investment Income Interest | $ 3,178 | ¥ 20,589 | 17,009 | 2,058 | |
Percentage of business taxes, surcharges and cultural development fees on revenue, minimum | 0.56% | 0.56% | |||
Percentage of business taxes, surcharges and cultural development fees on revenue, maximum | 2.27% | 2.27% | |||
Advertising costs | $ 4,043 | ¥ 26,192 | 34,489 | 30,759 | |
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 | |||
Deferred stock issuance costs | 3,241 | ||||
Current deferred tax liability | ¥ 0 | ||||
Minimum [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Presumption investment interests percentage for accounted under equity method | 3.00% | 3.00% | |||
Maximum [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Presumption investment interests percentage for accounted under equity method | 5.00% | 5.00% | |||
Cost of Services [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Business tax and surcharges | $ 97 | ¥ 629 | ¥ 8,198 | ¥ 7,526 | |
China, Yuan Renminbi | |||||
Summary Of Accounting Policies [Line Items] | |||||
Currency exchange rate | 6.4778 | 6.4778 | |||
United States of America, Dollars | |||||
Summary Of Accounting Policies [Line Items] | |||||
Currency exchange rate | 1 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Estimated Residual, Percentage | 2.00% |
Motor vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
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 ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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 |
Intangible assets arising from business combination [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 15 years |
CONCENTRATION OF RISKS (Narrati
CONCENTRATION OF RISKS (Narrative) (Details) - item | Apr. 03, 2015 | Oct. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Concentration Risk [Line Items] | |||||
Number of entities approved by the MOF to conduct online sales of sports lottery products | 2 | ||||
Number of competent government authorities who jointly released a public bulletin with regard to online lottery sales | 8 | ||||
Service Fees [Member] | Concentration of suppliers [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of service fees | 85.10% | 79.10% | 87.30% | ||
Service Fees [Member] | Concentration of serviced lottery products [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of service fees | 97.40% | 93.20% | 95.90% |
CONCENTRATION OF RISKS (Signifi
CONCENTRATION OF RISKS (Significance of Service Fees Received from Lottery Administration Centers) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | $ 15,368 | ¥ 99,552 | ¥ 579,717 | ¥ 259,534 |
Service Fees [Member] | Concentration of suppliers [Member] | Lottery administration center A [Member] | ||||
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | 7,453 | 48,277 | 260,096 | 169,474 |
Service Fees [Member] | Concentration of suppliers [Member] | Lottery administration center B [Member] | ||||
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | 5,643 | 36,552 | 198,549 | 75,212 |
Service Fees [Member] | Concentration of suppliers [Member] | Lottery administration center C [Member] | ||||
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | $ 1,736 | ¥ 11,245 | ¥ 121,628 | ¥ 45,231 |
BUSINESS COMBINATION (Narrative
BUSINESS COMBINATION (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 20, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Business combination [Line Items] | ||||
Minimum operating income required for payment of contingent consideration | ¥ | ¥ 10,000 | |||
Sumpay.cn [Member] | ||||
Business combination [Line Items] | ||||
Percentage of voting interests acquired | 63.00% | |||
Acquisition-related costs | $ | $ 48 | |||
Ownership percentage | 37.00% | 37.00% | 37.00% | |
Discount rate (as a percent) | 18.61% | |||
Long-term sustainable growth rate (as a percent) | 3.00% | |||
Fair value of the contingent consideration | ¥ 6,300 | $ 6,300 | ||
Contributed revenues to the Group | $ 109 | ¥ 708 | ||
Contributed losses to the Group | $ 81 | ¥ 525 |
BUSINESS COMBINATION (Schedule
BUSINESS COMBINATION (Schedule of Fair Value of Consideration Transferred at Acquisition Date) (Details) - Sumpay.cn [Member] ¥ in Thousands, $ in Thousands | Dec. 20, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Fair value of consideration transferred | ||
Cash considerationCash consideration | $ 226,800 | |
Contingent consideration | ¥ 6,300 | 6,300 |
Total | $ 233,100 |
BUSINESS COMBINATION (Summary o
BUSINESS COMBINATION (Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Business combination [Line Items] | |||
Goodwill | $ 10,019 | ¥ 64,899 | |
Sumpay.cn [Member] | Online payment and other licenses [Member] | |||
Business combination [Line Items] | |||
Cash | 133,599 | ||
Online payment and other licenses | 185,698 | ||
Others | 23,263 | ||
Total identifiable assets acquired | 342,560 | ||
Advances from merchants | (62,138) | ||
Deferred tax liabilities | (13,436) | ||
Total liabilities assumed | (75,574) | ||
Net identifiable assets acquired | 266,986 | ||
Noncontrolling interests | (98,785) | ||
Goodwill | 64,899 | ||
Net assets acquired | ¥ 233,100 | ||
Amortization Years | 15 years |
BUSINESS COMBINATION (Schedul60
BUSINESS COMBINATION (Schedule of acquired intangible assets have weighted average economic lives) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computer software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives | 8 years |
Online payment and other licenses [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives | 15 years |
BUSINESS COMBINATION (Summary61
BUSINESS COMBINATION (Summary of Unaudited Pro forma Information) (Details) - Sumpay.cn [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Business combination [Line Items] | |||
Pro forma total revenues | $ 20,135 | ¥ 130,430 | ¥ 604,900 |
Pro forma net income (loss) | (50,546) | (327,430) | 151,163 |
Pro forma net income (loss) attributable to 500.com Limited | $ (50,320) | ¥ (325,962) | ¥ 153,341 |
INVESTMENTS (Schedule of Short-
INVESTMENTS (Schedule of Short-term Investments) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2015CNY (¥) | |
Investment Holdings [Line Items] | |||||
Changes in fair value of the structured deposit | $ (174) | ¥ (1,124) | ¥ 1,124 | ||
Structured Deposits [Member] | |||||
Investment Holdings [Line Items] | |||||
Original costs | ¥ 71,306 | ¥ 45,540 | |||
Gross unrealized gains | |||||
Gross unrealized losses | ¥ (1,124) | ||||
Provision for decline in value | |||||
Fair value of investments | $ 7,030 | ¥ 70,182 | ¥ 45,540 |
INVESTMENTS (Schedule of Invest
INVESTMENTS (Schedule of Investments Categorized by Investment Class) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013USD ($) | Dec. 31, 2013CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cost method and equity method investments | |||||||
Impairment loss on equity investment | $ 772 | ¥ 5,000 | |||||
Loss from equity method investments | (63) | (407) | |||||
Total carrying amount of long-term investments | 9,314 | ¥ 6,652 | ¥ 60,332 | ||||
Cost Method Investments [Member] | |||||||
Cost method and equity method investments | |||||||
Cost of cost method investments | 6,089 | ¥ 6,652 | 39,443 | ||||
Impairment loss on equity investment | (772) | (5,000) | |||||
Amount of cost method investment | 5,317 | ¥ 6,652 | 34,443 | ||||
Equity Method Investments [Member] | |||||||
Cost method and equity method investments | |||||||
Cost of equity method investments | 4,059 | 26,296 | |||||
Loss from equity method investments | (63) | ¥ (407) | |||||
Carrying amount of equity method investments | 3,996 | 25,889 | |||||
Private company [Member] | Cost Method Investments [Member] | |||||||
Cost method and equity method investments | |||||||
Cost of cost method investments | 4,840 | ¥ 5,114 | 31,351 | ||||
Private company [Member] | Equity Method Investments [Member] | |||||||
Cost method and equity method investments | |||||||
Cost of equity method investments | 849 | 5,500 | |||||
Limited partnership [Member] | Cost Method Investments [Member] | |||||||
Cost method and equity method investments | |||||||
Cost of cost method investments | 1,249 | ¥ 1,538 | 8,092 | ||||
Limited partnership [Member] | Equity Method Investments [Member] | |||||||
Cost method and equity method investments | |||||||
Cost of equity method investments | $ 3,210 | ¥ 20,796 |
INVESTMENTS (Narrative) (Detail
INVESTMENTS (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||||||||
Dec. 31, 2015USD ($) | Aug. 31, 2015USD ($) | Jun. 30, 2015CNY (¥) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Apr. 30, 2014CNY (¥) | Jan. 31, 2014CNY (¥) | Dec. 31, 2015CNY (¥) | Aug. 31, 2015CNY (¥) | Apr. 30, 2015CNY (¥) | Dec. 31, 2014USD ($) | |
Private company [Member] | Xibianyuan [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of equity method investments | 19.00% | ||||||||||
Amount of original cost of equity method investments | ¥ 5,500 | ||||||||||
Limited partnership [Member] | Guangda Sports Culture [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of equity method investments | 9.90% | ||||||||||
Amount of original cost of equity method investments | ¥ 20,000 | ||||||||||
Amount of equity method investment | ¥ 20,000 | ||||||||||
Huanlelingdang [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 20.00% | ||||||||||
Amount of original cost of cost method investments | ¥ 5,000 | ||||||||||
Hewei [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 19.00% | ||||||||||
Amount of original cost of cost method investments | ¥ 114 | ||||||||||
Hzone Holiding Company [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 10.00% | ||||||||||
Amount of original cost of cost method investments | $ | $ 2,000 | ||||||||||
Big Stomach Limited [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 2.00% | ||||||||||
Amount of original cost of cost method investments | $ | $ 500 | ||||||||||
Topgame Global Limited [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 1.29% | ||||||||||
Amount of original cost of cost method investments | $ | $ 1,373 | ||||||||||
Caicaihudong (Beijing) Technology Co., Ltd [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 1.29% | ||||||||||
Amount of original cost of cost method investments | ¥ 13 | ||||||||||
Youwang Technology (Shanghai) Co., Ltd. [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Amount of original cost of cost method investments | ¥ 477 | ||||||||||
Danhua [Member] | Limited partnership [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 1.10% | ||||||||||
Amount of original cost of cost method investments | $ | $ 1,000 | ||||||||||
Amount of cost method investment | $ | $ 750 | $ 250 | |||||||||
Amount of unfunded investment commitment | $ | $ 250 | ||||||||||
Heimatuoxin [Member] | Limited partnership [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 3.49% | ||||||||||
Amount of original cost of cost method investments | ¥ 3,000 | ||||||||||
Amount of cost method investment | ¥ 3,000 | ||||||||||
Sumpay.cn [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Percentage of cost method investments | 15.00% | ||||||||||
Hangzhou Laiqi [Member] | Private company [Member] | |||||||||||
Investments [Line Items] | |||||||||||
Amount of original cost of cost method investments | ¥ 600 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
ACCOUNTS RECEIVABLE [Abstract] | |||
Accounts receivable | $ 3,642 | ¥ 23,588 | ¥ 74,445 |
Less: Allowance for doubtful accounts | (3,080) | (19,950) | |
Accounts receivable, net | $ 562 | ¥ 3,638 | ¥ 74,445 |
PREPAYMENTS, OTHER CURRENT AS66
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Summary of Prepayments and Other Current Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | ||||
Deposits for future lottery ticket purchase | [1] | $ 7 | ¥ 46 | ¥ 89,417 |
Receivables from third party payment service providers | $ 137 | ¥ 888 | 17,705 | |
Receivables from lottery administration centers for winnings | 2,749 | |||
Interest receivables | $ 801 | ¥ 5,189 | 6,441 | |
Deposit for business acquisition | [2] | 20,000 | ||
Deferred sponsorship and advertising expenses | $ 303 | ¥ 1,963 | ¥ 10,324 | |
Deposits receivable from merchants | [3] | 1,076 | 6,970 | |
Others | 2,438 | 15,799 | ¥ 11,251 | |
Prepayments and other current assets, Total | $ 4,762 | ¥ 30,855 | ¥ 157,887 | |
[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 returned to the Group in January 2015, as the deal was cancelled. | |||
[3] | Deposits receivable from merchants represent cash paid in advance by Sumpay.cn to the local merchants for the prepaid card services. |
PREPAYMENTS, OTHER CURRENT AS67
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Summary of Deposits) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | |||
Deposits for lottery ticket equipment and office leases | $ 188 | ¥ 1,217 | ¥ 10,071 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | $ 13,498 | ¥ 87,439 | ¥ 67,005 |
Less: Accumulated depreciation | (6,676) | (43,245) | (25,930) |
Property and equipment, net | 6,822 | 44,194 | 41,075 |
Electronics and office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 7,242 | 46,911 | 30,972 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 1,650 | 10,686 | 9,642 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | $ 4,606 | ¥ 29,842 | ¥ 26,391 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
PROPERTY AND EQUIPMENT, NET [Abstract] | ||||
Depreciation expense | $ 1,576 | ¥ 10,209 | ¥ 8,653 | ¥ 7,847 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 32,219 | ¥ 208,702 | ¥ 6,243 |
Accumulated amortization | (1,321) | (8,554) | (2,889) |
Intangible assets, net | 30,898 | 200,148 | 3,354 |
Computer software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 2,987 | 19,343 | 4,785 |
Accumulated amortization | (934) | (6,050) | (1,787) |
License agreement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 123 | 800 | 800 |
Accumulated amortization | (123) | (800) | ¥ (800) |
Online payment and other licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 28,667 | 185,698 | |
Accumulated amortization | (53) | (344) | |
Internet domain name [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 442 | 2,861 | ¥ 658 |
Accumulated amortization | $ (211) | ¥ (1,360) | ¥ (302) |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
INTANGIBLE ASSETS, NET [Abstract] | ||||
Amortization expenses | $ 210 | ¥ 1,361 | ¥ 1,634 | ¥ 659 |
INTANGIBLE ASSETS, NET (Sched72
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
INTANGIBLE ASSETS, NET [Abstract] | |||
2,016 | $ 2,296 | ¥ 14,872 | |
2,017 | 2,273 | 14,722 | |
2,018 | 2,209 | 14,307 | |
2,019 | 2,186 | 14,159 | |
2020 and thereafter | 21,934 | 142,088 | |
Intangible assets, net | $ 30,898 | ¥ 200,148 | ¥ 3,354 |
ACCRUED EXPENSES AND OTHER CU73
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||||
Advance from end users | [1] | $ 5,457 | ¥ 35,352 | ¥ 66,679 |
Advance from prepaid cards | [2] | 9,592 | 62,138 | |
Business tax and other taxes payable | 104 | 675 | ¥ 4,360 | |
Deferred government grant | 1,815 | 11,757 | 14,016 | |
Professional fees payable | 1,519 | 9,842 | 11,323 | |
Promotional events payables | 840 | 5,439 | 10,869 | |
Advertising and sponsorship payable | 140 | 904 | ¥ 2,267 | |
Contingent consideration for business combination | 973 | 6,300 | ||
Others | 1,267 | 8,205 | ¥ 8,478 | |
Accrued expenses and other current liabilities, Total | $ 21,707 | ¥ 140,612 | ¥ 117,992 | |
[1] | 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. | |||
[2] | Advance from prepaid cards represents the unused remaining value on the prepaid cards as at the balance sheet date. |
CONVERTIBLE NOTE (Details)
CONVERTIBLE NOTE (Details) ¥ in Thousands, $ in Thousands | Oct. 21, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013USD ($)shares | Dec. 31, 2013CNY (¥)shares |
Debt Instrument [Line Items] | ||||||
Shares issued upon conversion of debt | $ 25,000 | ¥ 153,325 | ||||
Interest expense | 3,933 | |||||
Change in fair value of redemption feature | 26,809 | |||||
Gain loss on extinguishment of debt | 30,742 | |||||
Ordinary shares [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Shares issued upon conversion of debt | ¥ | ¥ 6 | |||||
Class B Ordinary shares [Member] | Ordinary shares [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Conversion of convertible note to ordinary shares | shares | 19,230,769 | 19,230,769 | ||||
Convertible Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible debt, aggregate principal amount | $ | $ 20,000 | |||||
Convertible debt, maturity date | Jun. 30, 2014 | |||||
Convertible debt, interest rate | 10.00% | |||||
Convertible debt, interest rate in event of default | 13.00% | |||||
Conversion price per share, percentage | 80.00% | 80.00% |
CONVERTIBLE NOTE (Reconciliatio
CONVERTIBLE NOTE (Reconciliation of Derivative Redemption Feature Measured at Fair Value on Recurring Basis) (Detail) - Derivative redemption feature [Member] ¥ in Thousands | 12 Months Ended |
Dec. 31, 2013CNY (¥) | |
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) - 12 months ended Dec. 31, 2015 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Retained Earnings Adjustments [Line Items] | ||
PRC Subsidiary and VIEs restricted amount | $ 73,187 | ¥ 474,093 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Percentage of after tax profits to be allocated to general reserve fund | 10.00% | |
Percentage of registered capital | 50.00% | |
E-Sun Sky Computer [Member] | ||
Retained Earnings Adjustments [Line Items] | ||
Percentage of after tax profits to be allocated to general reserve fund | 10.00% | |
Percentage of registered capital | 50.00% |
ACCUMULATED DEFICIT (Schedule o
ACCUMULATED DEFICIT (Schedule of Accumulated Deficit) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
ACCUMULATED DEFICIT [Abstract] | |||
PRC statutory reserved funds | $ 4,552 | ¥ 29,486 | ¥ 33,754 |
Unreserved accumulated deficit | (56,323) | (364,849) | (45,124) |
Accumulated deficit | $ (51,771) | ¥ (335,363) | ¥ (11,370) |
INCOME TAXES (Narrative Summary
INCOME TAXES (Narrative Summary of Tax Rates) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Income Tax Contingency [Line Items] | ||||||
Provision for income tax | $ 6,479 | ¥ 41,969 | ¥ 7,987 | ¥ (76,294) | ||
Guangyi Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
Shenzhen Yicai [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
Shenzhen Fenggu [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
Tongfu Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
Sumpay.cn [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
Hangzhou Laiqi [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
High-tech Enterprise [Member] | E-Sun Sky Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 15.00% | 15.00% | ||||
High-tech Enterprise [Member] | Shangmeng Services [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 15.00% | 15.00% | ||||
Transitional income tax rate period | 3 years | 3 years | ||||
Hong Kong [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 16.50% | 16.50% | ||||
PRC [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
PRC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 15.00% | 15.00% | ||||
PRC [Member] | Youlanguang Technology [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
PRC [Member] | E-Sun Network [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
PRC [Member] | E-Sun Sky Computer [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 12.50% | 12.50% | 12.50% | 12.50% | ||
PRC [Member] | Guangtiandi Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 12.50% | 12.50% | 0.00% | 0.00% | ||
PRC [Member] | 500Fu [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
PRC [Member] | Baifengrun Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 25.00% | 25.00% | ||||
PRC [Member] | Lhasa Yicai [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 15.00% | 15.00% | ||||
PRC [Member] | Key Software Enterprise [Member] | E-Sun Sky Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 10.00% | 10.00% | ||||
PRC [Member] | High-tech Enterprise [Member] | E-Sun Sky Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |
PRC [Member] | High-tech Enterprise [Member] | E-Sun Sky Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Forecast [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory EIT rate on taxable income | 15.00% | |||||
United States of America [Member] | 500.com USA [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Provision for income tax | ||||||
Assessable income |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income (Loss) before Income Taxes) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | $ (43,570) | ¥ (282,240) | ¥ 165,036 | ¥ 29,760 |
Cayman Islands [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | $ (25,227) | ¥ (163,416) | (94,331) | (32,227) |
British Virgin Islands [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | ¥ (4) | ¥ (12) | ||
USA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | $ (358) | ¥ (2,320) | ||
Hong Kong [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | (227) | (1,470) | ¥ (838) | ¥ (297) |
PRC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | $ (17,758) | ¥ (115,034) | ¥ 260,209 | ¥ 62,296 |
INCOME TAXES (Schedule of Curre
INCOME TAXES (Schedule of Current and Deferred Components) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
INCOME TAXES [Abstract] | ||||
Current tax expense | $ (292) | ¥ (1,890) | ¥ (31,918) | ¥ (20,839) |
Deferred tax benefit (expense) | (6,187) | (40,079) | 23,931 | 97,133 |
Income tax benefit (expense) | $ (6,479) | ¥ (41,969) | ¥ (7,987) | ¥ 76,294 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Tax Computed Applying Statutory Income Tax Rate) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
INCOME TAXES [Abstract] | ||||
Income (loss) before income taxes | $ (43,570) | ¥ (282,240) | ¥ 165,036 | ¥ 29,760 |
Income tax computed at applicable tax rates (25%) | (10,893) | (70,560) | 41,259 | 7,440 |
Effect of different tax rates in different jurisdictions | 186 | 1,206 | 1,313 | 8,134 |
Non-deductible expenses | $ 7,306 | ¥ 47,324 | 28,103 | 15,810 |
Effect of tax holiday | (16,170) | (942) | ||
Effect of tax rate changes | $ (3,724) | ¥ (24,125) | (38,747) | (15,581) |
Change in valuation allowance | 13,687 | 88,661 | 18 | (1,900) |
Change in interest and penalties on unrecognized tax benefits | 605 | 3,920 | (349) | 2,222 |
Effect of EIT reversal for previous years | (324) | (2,099) | (5,799) | (2,242) |
Research and development super-deduction | $ (365) | ¥ (2,363) | ¥ (1,959) | (499) |
Outside basis differences | (88,796) | |||
Others | $ 1 | ¥ 5 | ¥ 318 | 60 |
Income tax expense (benefit) | $ 6,479 | ¥ 41,969 | ¥ 7,987 | ¥ (76,294) |
INCOME TAXES (Reconciliation 82
INCOME TAXES (Reconciliation of Tax Computed Applying Statutory Income Tax Rate) (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
INCOME TAXES [Abstract] | ||||
Balance at beginning of year | $ 6,005 | ¥ 38,901 | ¥ 27,405 | ¥ 11,577 |
Increase relating to current year tax positions | 1,157 | 7,496 | 18,014 | 18,843 |
Decrease relating to prior year tax positions | (173) | (1,119) | (5,202) | (2,955) |
Decrease relating to expiration of applicable statute of limitations | (354) | (2,295) | (1,316) | (60) |
Balance at end of year | $ 6,635 | ¥ 42,983 | ¥ 38,901 | ¥ 27,405 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 06, 2012 | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2012CNY (¥) |
Income Tax Contingency [Line Items] | |||||||
Unrecognized tax benefits if recognized that would affect effective tax rate | $ 2,159 | ¥ 13,067 | ¥ 14,342 | ¥ 13,985 | |||
Recognizes interest and penalties accrued | 700 | ¥ 4,534 | 2,119 | 2,463 | |||
Unrecognized tax benefits reversed | 95 | 2,469 | 241 | 614 | |||
Accrued interest and penalties | $ 1,063 | 2,963 | 3,313 | 6,884 | |||
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. | |||||
Net operating losses | $ 15,143 | 98,098 | |||||
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 | 65,970 | 542,027 | 427,340 | ||||
Unrecognized deferred tax liabilities | $ 6,597 | ¥ 54,203 | ¥ 42,734 | ||||
Dividend Declared [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Distribution of dividends to all ordinary shareholders | Dec. 6, 2012 | ||||||
Dividends Payable, amount | ¥ 90,000 | ||||||
Earliest Tax Year [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Year open for examination | 2,012 | 2,012 | |||||
Net operating losses expiration year | 2,016 | 2,016 | |||||
Latest Tax Year [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Year open for examination | 2,015 | 2,015 | |||||
Net operating losses expiration year | 2,020 | 2,020 |
INCOME TAXES (Summary of Aggreg
INCOME TAXES (Summary of Aggregate Amount and per Share Effect of Tax Holidays) (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2015CNY (¥)¥ / shares | Dec. 31, 2014CNY (¥)¥ / shares | Dec. 31, 2013CNY (¥)¥ / shares | |
Income Tax Holiday [Line Items] | ||||
The aggregate amount | ¥ 16,170 | ¥ 942 | ||
Basic [Member] | ||||
Income Tax Holiday [Line Items] | ||||
The aggregate effect on basic and diluted earnings per share for Class A and Class B ordinary shares outstanding | (per share) | ¥ 0.05 | |||
Diluted [Member] | ||||
Income Tax Holiday [Line Items] | ||||
The aggregate effect on basic and diluted earnings per share for Class A and Class B ordinary shares outstanding | (per share) | ¥ 0.05 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Taxes) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Deferred tax assets, current portion | |||
Accrued payroll and welfare payable | $ 368 | ¥ 2,382 | ¥ 3,631 |
Advertising expenditure deductible in future years | 33,466 | ||
Deferred government grants | $ 272 | ¥ 1,764 | ¥ 2,597 |
Bad debt provision | $ 460 | ¥ 2,977 | |
Changes in fair value of the Structured deposit | ¥ 169 | ||
Less: valuation allowance | $ (1,100) | ¥ (7,123) | (102) |
Total deferred tax assets, current portion | ¥ 39,761 | ||
Deferred tax assets, non-current portion | |||
Advertising expenditure deductible in future years | $ 10,081 | ¥ 65,305 | |
Deferred government grants | 188 | 1,217 | |
Loss from equity method investment | 16 | 102 | |
Net operating losses ("NOLs") | 2,487 | 16,111 | ¥ 1,438 |
Less: valuation allowance | $ (12,772) | ¥ (82,735) | (1,095) |
Total deferred tax assets, non-current portion | ¥ 343 | ||
Deferred tax liabilities, non-current portion | |||
Online payment and other licenses arisen from business combination | $ (2,070) | ¥ (13,411) | |
Total deferred tax liabilities, non-current portion | $ (2,070) | ¥ (13,411) |
EMPLOYEE DEFINED CONTRIBUTION87
EMPLOYEE DEFINED CONTRIBUTION PLAN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
EMPLOYEE DEFINED CONTRIBUTION PLAN [Abstract] | ||||
Amount of employee benefits expensed | $ 1,942 | ¥ 12,587 | ¥ 10,042 | ¥ 8,848 |
SHARE-BASED PAYMENT (Narrative)
SHARE-BASED PAYMENT (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jun. 29, 2015$ / sharesshares | Mar. 19, 2015USD ($)$ / shares | Jun. 19, 2014$ / sharesshares | Oct. 22, 2013$ / sharesshares | Jun. 08, 2012USD ($)Employees$ / sharesshares | Apr. 08, 2011$ / sharesshares | Mar. 28, 2011 | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2013USD ($) | Dec. 31, 2013CNY (¥) | Dec. 31, 2015CNY (¥)shares |
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 | |||||||||||||
Share options exercised | 5,274,480 | 5,274,480 | 22,742,660 | 22,742,660 | ||||||||||
Number of vested and non vested options | 13,740,000 | |||||||||||||
Number of employees granted | Employees | 88 | |||||||||||||
Exercise price of options previously granted | $ / shares | $ 0.4 | |||||||||||||
Exercise price of options granted | $ / shares | $ 0.2 | |||||||||||||
Incremental compensation cost | $ | $ 670 | |||||||||||||
Incremental compensation cost recognized during year | $ | 178 | |||||||||||||
Incremental compensation cost of unvested options | $ | 2,036 | |||||||||||||
Share-based compensation cost for unvested option | $ 20,581 | ¥ 133,322 | ||||||||||||
Equity awards granted to employees recognition period | 2 years 4 months 24 days | 2 years 4 months 24 days | ||||||||||||
After modification [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Fair value of options | $ | $ 15,390 | 3,460 | ||||||||||||
Before modification [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Fair value of options | $ | $ 4,193 | 2,790 | ||||||||||||
Employees and Directors [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares granted during period | 13,864,000 | 200,000 | 200,000 | |||||||||||
Exercise price of share | $ / shares | $ 3.232 | $ 0.40 | $ 2.55 | |||||||||||
Number of shares options vested | 37,675,960 | 37,675,960 | ||||||||||||
Intrinsic value of options exercised | $ 7,661 | ¥ 49,625 | ¥ 90,196 | |||||||||||
Share options exercised | 5,274,480 | 5,274,480 | ||||||||||||
Number of vested and non vested options | 38,058,640 | 43,139,120 | 43,139,120 | 38,058,640 | ||||||||||
Fair value of options | $ 9,756 | ¥ 63,200 | $ 3,537 | ¥ 21,946 | $ 1,893 | ¥ 11,457 | ||||||||
Weighted-average grant-date fair value per share granted | $ / shares | $ 1.07 | $ 1.35 | ||||||||||||
Employees and Directors [Member] | First anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 5,506,600 | |||||||||||||
Employees and Directors [Member] | Second anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 5,225,800 | |||||||||||||
Employees and Directors [Member] | Third anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 1,565,800 | |||||||||||||
Employees and Directors [Member] | Fourth anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 1,565,800 | |||||||||||||
Directors [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares granted during period | 200,000 | 2,000,000 | 5,003,980 | |||||||||||
Exercise price of share | $ / shares | $ 1 | $ 0.40 | ||||||||||||
Directors [Member] | First anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 66,670 | |||||||||||||
Directors [Member] | Second anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 66,670 | |||||||||||||
Directors [Member] | Third anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 66,660 | |||||||||||||
Directors [Member] | November 22, 2014 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 666,690 | |||||||||||||
Directors [Member] | November 22, 2015 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 666,690 | |||||||||||||
Directors [Member] | November 22, 2016 [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 666,620 | |||||||||||||
Consultants [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares granted during period | 12,600,000 | |||||||||||||
Exercise price of share | $ / shares | $ 0.40 | |||||||||||||
Share options exercised | ||||||||||||||
Employees [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares granted during period | 32,561,800 | 2,660,000 | ||||||||||||
Exercise price of share | $ / shares | $ 0.40 | |||||||||||||
Exercise price of options previously granted | $ / shares | $ 3.232 | |||||||||||||
Exercise price of options granted | $ / shares | $ 1 | |||||||||||||
Incremental compensation cost | $ | $ 11,197 | |||||||||||||
Incremental compensation cost recognized during year | $ | 213 | |||||||||||||
Incremental compensation cost of unvested options | $ | 39,616 | |||||||||||||
Employees [Member] | First anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 5,437,820 | 1,620,000 | ||||||||||||
Employees [Member] | Second anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 10,843,080 | 220,000 | ||||||||||||
Employees [Member] | Third anniversary [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 16,280,900 | 220,000 | ||||||||||||
Employees [Member] | 180 days [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares options vested | 600,000 | |||||||||||||
Compensation cost measured [Member] | After modification [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Fair value of options | $ | 28,632 | 1,544 | ||||||||||||
Total compensation cost | $ | $ 39,829 | $ 2,214 | ||||||||||||
ADS [Member] | Employees and Directors [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Exercise price of share | $ / shares | $ 32.32 | |||||||||||||
ADS [Member] | Employees [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Exercise price of options previously granted | $ / shares | $ 32.32 | |||||||||||||
Exercise price of options granted | $ / shares | $ 10 |
SHARE-BASED PAYMENT (Summary of
SHARE-BASED PAYMENT (Summary of Share Option Activity and Related Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 19, 2014 | Apr. 08, 2011 | Dec. 31, 2015 | Dec. 31, 2014 |
Number of option | ||||
Exercised | (5,274,480) | (22,742,660) | ||
Employees and Directors [Member] | ||||
Number of option | ||||
Outstanding, January 1, 2015 | 43,139,120 | |||
Granted | 13,864,000 | 200,000 | ||
Forfeited | (6,000) | |||
Exercised | (5,274,480) | |||
Outstanding, December 31, 2015 | 38,058,640 | 43,139,120 | ||
Vested and expected to vest at December 31, 2015 | 37,675,960 | |||
Exercisable at December 31, 2015 | 9,109,351 | |||
Weighted average exercise price | ||||
Outstanding, January 1, 2015 | $ 2.64 | |||
Granted | $ 3.232 | $ 0.40 | 2.55 | |
Forfeited | 0.20 | |||
Exercised | 0.30 | |||
Outstanding, December 31, 2015 | 0.90 | $ 2.64 | ||
Vested and expected to vest at December 31, 2015 | 0.91 | |||
Exercisable at December 31, 2015 | 0.57 | |||
Weighted average grant date fair value per share | ||||
Outstanding, January 1, 2015 | 1.19 | |||
Granted | 1.07 | 1.35 | ||
Forfeited | 0.38 | |||
Exercised | 0.34 | |||
Outstanding, December 31, 2015 | 1.24 | $ 1.19 | ||
Vested and expected to vest at December 31, 2015 | 1.53 | |||
Exercisable at December 31, 2015 | $ 1.02 | |||
Weighted average remaining contractual year | ||||
Outstanding | 3 years 3 months 29 days | 4 years 4 months 24 days | ||
Vested and expected to vest at December 31, 2015 | 3 years 3 months 22 days | |||
Exercisable at December 31, 2015 | 4 years 14 days | |||
Aggregated intrinsic value | ||||
Outstanding, December 31, 2015 | $ 42,285 | |||
Vested and expected to vest at December 31, 2015 | 41,593 | |||
Exercisable at December 31, 2015 | $ 13,103 |
SHARE-BASED PAYMENT (Schedule o
SHARE-BASED PAYMENT (Schedule of Assumptions Used to Estimate Fair Value of Share Options Granted) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 49.86% | ||
Expected volatility, minimum | 51.96% | 50.39% | |
Expected volatility, maximum | 56.23% | 54.38% | |
Risk-free interest rate | 2.60% | ||
Risk-free interest rate, minimum | 1.06% | 0.65% | |
Risk-free interest rate, maximum | 1.64% | 1.64% | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 0.00% | 0.00% | |
Suboptimal early exercise factor | $ 2.8 | $ 2.2 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 0.00% | ||
Suboptimal early exercise factor | $ 2.2 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 5.00% | ||
Suboptimal early exercise factor | $ 2.8 |
SHARE-BASED PAYMENT (Schedule91
SHARE-BASED PAYMENT (Schedule of Share-Based Compensation Expenses Relating to Options Granted) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013USD ($) | Dec. 31, 2013CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | $ 24,488 | ¥ 158,629 | $ 14,493 | ¥ 89,922 | $ 1,219 | ¥ 7,561 |
Cost of Services [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 471 | 3,052 | 238 | 1,478 | 18 | 113 |
Sales and marketing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 2,126 | 13,771 | 1,067 | 6,619 | 63 | 390 |
General and administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 18,371 | 119,002 | 11,406 | 70,770 | 996 | 6,178 |
Service development expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | $ 3,520 | 22,804 | $ 1,782 | 11,055 | $ 142 | 880 |
Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 149,567 | 82,136 | 7,561 | |||
Employees [Member] | Cost of Services [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 3,052 | 1,478 | 113 | |||
Employees [Member] | Sales and marketing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 13,771 | 6,619 | 390 | |||
Employees [Member] | General and administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 109,940 | 62,984 | 6,178 | |||
Employees [Member] | Service development expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 22,804 | 11,055 | ¥ 880 | |||
Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | ¥ 9,062 | ¥ 7,786 | ||||
Directors [Member] | Cost of Services [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | ||||||
Directors [Member] | Sales and marketing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | ||||||
Directors [Member] | General and administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | ¥ 9,062 | ¥ 7,786 | ||||
Directors [Member] | Service development expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2015CNY (¥) | |
Shenzhen Bozhi Consulting Co. Ltd. [Member] | ||||
Amount due to a related party: | ||||
Transaction amount | ||||
Balances with related party | ||||
Delite Limited [Member] | ||||
Amount due to a related party: | ||||
Transaction amount | ||||
Balances with related party |
COMMITMENTS AND CONTINGENCIES93
COMMITMENTS AND CONTINGENCIES (Schedule of Operating Lease Commitments) (Details) - Dec. 31, 2015 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
2,016 | $ 833 | ¥ 5,396 |
2,017 | 607 | 3,931 |
2,018 | 597 | 3,865 |
2,019 | $ 258 | ¥ 1,664 |
2020 and thereafter | ||
Operating lease commitments due | $ 2,294 | ¥ 14,856 |
COMMITMENTS AND CONTINGENCIES94
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2015CNY (¥) | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
Total rental expenses for operating leases | $ 620 | ¥ 4,013 | ¥ 5,279 | ¥ 4,931 | |
Accrual for unrecognized tax benefits | 6,481 | 40,287 | ¥ 41,981 | ||
Fair value of guarantees | $ 0 | ¥ 0 | ¥ 0 |
EARNINGS (LOSSES) PER SHARE (De
EARNINGS (LOSSES) PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | Dec. 31, 2013CNY (¥)¥ / sharesshares | |
Basic Denominator: | ||||
Denominator used for earnings (losses) per share | 385,590,213 | 385,590,213 | 339,782,819 | 238,342,685 |
Earnings (losses) per share-basic | (per share) | $ (0.13) | ¥ (0.84) | ¥ 0.46 | ¥ 0.45 |
Diluted Numerator: | ||||
Net income (loss) attributable to 500.com Limited | $ (50,001) | ¥ (323,897) | ¥ 157,049 | ¥ 106,054 |
Diluted Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 385,590,213 | 385,590,213 | 339,782,819 | 238,342,685 |
Denominator used for earnings (losses) per share | 385,590,213 | 385,590,213 | 357,848,704 | 259,729,367 |
Earnings (losses) per share-diluted | (per share) | $ (0.13) | ¥ (0.84) | ¥ 0.44 | ¥ 0.41 |
Earnings per ADS: | ||||
Earnings (losses) per ADS - basic | (per share) | (1.30) | (8.40) | 4.62 | 4.45 |
Earnings (losses) per ADS - diluted | (per share) | $ (1.30) | ¥ (8.40) | ¥ 4.39 | ¥ 4.08 |
Class B Ordinary shares [Member] | ||||
Basic Numerator: | ||||
Allocation of net income (loss) attributable to 500.com Limited's ordinary shareholders used in calculating income per ordinary share-basic | $ (11,768) | ¥ (76,233) | ¥ 82,571 | ¥ 103,296 |
Basic Denominator: | ||||
Denominator used for earnings (losses) per share | 90,753,548 | 90,753,548 | 178,645,232 | 232,144,532 |
Earnings (losses) per share-basic | (per share) | $ (0.13) | ¥ (0.84) | ¥ 0.46 | ¥ 0.45 |
Diluted Numerator: | ||||
Allocation of net income (loss) attributable to 500.com Limited's ordinary shareholders used in calculating income per ordinary share- diluted | $ (11,768) | ¥ (76,233) | ¥ 78,604 | ¥ 95,179 |
Reallocation of net income (loss) attributable to 500.com Limited's ordinary shareholders as a result of conversion of Class B to Class A shares | ||||
Net income (loss) attributable to 500.com Limited | $ (11,768) | ¥ (76,233) | ¥ 78,604 | ¥ 95,179 |
Diluted Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 90,753,548 | 90,753,548 | 178,645,232 | 232,144,532 |
Conversion of Class B to Class A ordinary shares | ||||
Share options | ||||
Denominator used for earnings (losses) per share | 90,753,548 | 90,753,548 | 178,645,232 | 232,144,532 |
Earnings (losses) per share-diluted | (per share) | $ (0.13) | ¥ (0.84) | ¥ 0.44 | ¥ 0.41 |
Earnings per ADS: | ||||
Denominator used for earnings (losses) per ADS - basic | ||||
Denominator used for earnings (losses) per ADS - diluted | ||||
Earnings (losses) per ADS - basic | (per share) | ||||
Earnings (losses) per ADS - diluted | (per share) | ||||
Class A Ordinary shares [Member] | ||||
Basic Numerator: | ||||
Allocation of net income (loss) attributable to 500.com Limited's ordinary shareholders used in calculating income per ordinary share-basic | $ (38,233) | ¥ (247,664) | ¥ 74,478 | ¥ 2,758 |
Basic Denominator: | ||||
Denominator used for earnings (losses) per share | 294,836,665 | 294,836,665 | 161,137,587 | 6,198,153 |
Earnings (losses) per share-basic | (per share) | $ (0.13) | ¥ (0.84) | ¥ 0.46 | ¥ 0.45 |
Diluted Numerator: | ||||
Allocation of net income (loss) attributable to 500.com Limited's ordinary shareholders used in calculating income per ordinary share- diluted | $ (38,233) | ¥ (247,664) | ¥ 78,445 | ¥ 10,875 |
Reallocation of net income (loss) attributable to 500.com Limited's ordinary shareholders as a result of conversion of Class B to Class A shares | (11,768) | (76,233) | 78,604 | 95,179 |
Net income (loss) attributable to 500.com Limited | $ (50,001) | ¥ (323,897) | ¥ 157,049 | ¥ 106,054 |
Diluted Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 294,836,665 | 294,836,665 | 161,137,587 | 6,198,153 |
Conversion of Class B to Class A ordinary shares | 90,753,548 | 90,753,548 | 178,645,232 | 232,144,532 |
Share options | 18,065,885 | 21,386,682 | ||
Denominator used for earnings (losses) per share | 385,590,213 | 385,590,213 | 357,848,704 | 259,729,367 |
Earnings (losses) per share-diluted | (per share) | $ (0.13) | ¥ (0.84) | ¥ 0.44 | ¥ 0.41 |
Earnings per ADS: | ||||
Denominator used for earnings (losses) per ADS - basic | 29,483,667 | 29,483,667 | 16,113,759 | 619,815 |
Denominator used for earnings (losses) per ADS - diluted | 38,599,021 | 38,599,021 | 35,784,870 | 25,972,937 |
Earnings (losses) per ADS - basic | (per share) | $ (1.30) | ¥ (8.40) | ¥ 4.62 | ¥ 4.45 |
Earnings (losses) per ADS - diluted | (per share) | $ (1.30) | ¥ (8.40) | ¥ 4.39 | ¥ 4.08 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2013shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2013CNY (¥)shares | |
Class of Stock [Line Items] | |||||||
Issuance of ordinary shares from exercise of share options, shares | 5,274,480 | 5,274,480 | 22,742,660 | 22,742,660 | |||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | ||||||
Aggregate consideration from shares issued from exercise of stock options | $ 2,798 | ¥ 18,126 | ¥ 48,788 | ¥ 3,263 | |||
Authorized share capital, ordinary shares | 1,000,000,000 | ||||||
Minimum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Options exercise price per share | $ / shares | $ 0.2 | $ 0.2 | |||||
Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Options exercise price per share | $ / shares | 1 | 0.4 | |||||
Class B Ordinary shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | |||||
Authorized share capital, ordinary shares | 300,000,000 | 300,000,000 | |||||
Voting rights per share | ten votes per share | ten votes per share | |||||
Ordinary shares conversion basis | Each share of Class B ordinary shares is entitled to ten votes per share | Each share of Class B ordinary shares is entitled to ten votes per share | |||||
Private placement, ordinary shares issued | |||||||
Ordinary shares issued | 84,999,159 | 96,634,529 | 262,197,451 | 262,197,451 | |||
Ordinary shares outstanding | 84,999,159 | 96,634,529 | 262,197,451 | 262,197,451 | |||
Class B Ordinary shares [Member] | Ordinary shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of ordinary shares from exercise of share options, shares | 2,660,000 | 2,660,000 | |||||
Number of common shares issued during period | |||||||
Conversion of ordinary shares, shares converted | 231,428,220 | ||||||
Conversion of convertible note, ordinary shares issued | 19,230,769 | 19,230,769 | |||||
Private placement, ordinary shares issued | 11,538,462 | 11,538,462 | |||||
Ordinary shares issued, aggregate consideration | $ | $ 15,000 | ||||||
Class A Ordinary shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of common shares issued during period | 5,274,480 | 5,274,480 | |||||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | |||||
Aggregate consideration from shares issued from exercise of stock options | $ | $ 2,960 | $ 8,107 | |||||
Number of additional shares issued | 63,500,500 | 63,500,500 | |||||
Repurchased of ordinary shares, consideration | $ | $ 1,434 | ||||||
Repurchased of ordinary shares | 1,220,000 | 1,220,000 | |||||
Authorized share capital, ordinary shares | 700,000,000 | 700,000,000 | |||||
Voting rights per share | one vote per share | one vote per share | |||||
Private placement, ordinary shares issued | 63,500,500 | 63,500,500 | |||||
Ordinary shares issued, aggregate consideration | $ | $ 123,391 | ||||||
Ordinary shares issued | 334,034,932 | 254,844,582 | 66,539,000 | 66,539,000 | |||
Ordinary shares outstanding | 334,034,932 | 254,844,582 | 66,539,000 | 66,539,000 | |||
Class A Ordinary shares [Member] | Ordinary shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of ordinary shares from exercise of share options, shares | 5,274,480 | 5,274,480 | 22,742,660 | 22,742,660 | |||
Number of common shares issued during period | 66,539,000 | 66,539,000 | |||||
Conversion of ordinary shares, shares converted | 66,539,000 | ||||||
Conversion of convertible note, ordinary shares issued | |||||||
Private placement, ordinary shares issued |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Time deposits | $ 188,459 | ¥ 1,220,797 | ¥ 415,903 |
Total fair value | 232,169 | 1,503,944 | 525,903 |
Structured Deposit [Member] | Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 7,030 | 45,540 | 70,182 |
Fixed-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 37,149 | 240,646 | 80,000 |
Adjustable-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | $ 6,561 | ¥ 42,501 | ¥ 30,000 |
Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Time deposits | |||
Total fair value | |||
Quoted prices in active markets for identical assets (Level 1) [Member] | Structured Deposit [Member] | Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | |||
Quoted prices in active markets for identical assets (Level 1) [Member] | Fixed-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | |||
Quoted prices in active markets for identical assets (Level 1) [Member] | Adjustable-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | |||
Significant other observable inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Time deposits | ¥ 1,220,797 | ¥ 415,903 | |
Total fair value | 1,503,944 | 525,903 | |
Significant other observable inputs (Level 2) [Member] | Structured Deposit [Member] | Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | 45,540 | 70,182 | |
Significant other observable inputs (Level 2) [Member] | Fixed-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 240,646 | 80,000 | |
Significant other observable inputs (Level 2) [Member] | Adjustable-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | ¥ 42,501 | ¥ 30,000 | |
Significant unobservable inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Time deposits | |||
Total fair value | |||
Significant unobservable inputs (Level 3) [Member] | Structured Deposit [Member] | Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term investments | |||
Significant unobservable inputs (Level 3) [Member] | Fixed-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | |||
Significant unobservable inputs (Level 3) [Member] | Adjustable-rate investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended |
Dec. 31, 2015Segment | |
SEGMENT REPORTING [Abstract] | |
Number of reportable segment | 1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jun. 29, 2015$ / sharesshares | Jun. 19, 2014$ / sharesshares | Oct. 22, 2013$ / sharesshares | Apr. 08, 2011$ / sharesshares | Mar. 31, 2016USD ($)shares | Mar. 31, 2016CNY (¥)shares | Jan. 31, 2016$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Feb. 29, 2016USD ($) |
Class A Ordinary shares [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Repurchased of ordinary shares | 1,220,000 | ||||||||
Repurchased of ordinary shares, consideration | $ | $ 1,434 | ||||||||
Employees and Directors [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares granted during period | 13,864,000 | 200,000 | |||||||
Exercise price of share | $ / shares | $ 3.232 | $ 0.40 | $ 2.55 | ||||||
Employees and Directors [Member] | ADS [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of share | $ / shares | $ 32.32 | ||||||||
Directors [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares granted during period | 200,000 | 2,000,000 | 5,003,980 | ||||||
Exercise price of share | $ / shares | $ 1 | $ 0.40 | |||||||
Employees [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares granted during period | 32,561,800 | 2,660,000 | |||||||
Exercise price of share | $ / shares | $ 0.40 | ||||||||
Subsequent Event [Member] | ADS [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Amount of authorised share to be repurchased | $ | $ 30,000 | ||||||||
Repurchased of ordinary shares | 582,500 | 582,500 | |||||||
Repurchased of ordinary shares, consideration | $ | $ 9,600 | ||||||||
Subsequent Event [Member] | Directors [Member] | Class A Ordinary shares [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares granted during period | 100,000 | ||||||||
Exercise price of share | $ / shares | $ 1.85 | ||||||||
Subsequent Event [Member] | Employees [Member] | Class A Ordinary shares [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares granted during period | 250,000 | ||||||||
Exercise price of share | $ / shares | $ 2 | ||||||||
Subsequent Event [Member] | Sumpay.cn [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Disposal of ownership percentage | 63.00% | 63.00% | |||||||
Cash consideration | ¥ | ¥ 359,100 | ||||||||
Percentage of total consideration to be transferred immediately | 20.00% | 20.00% | |||||||
Amount of total consideration to be transferred immediately | ¥ | ¥ 71,820 | ||||||||
Percentge of remaining consideration to be settled within 10 days after renews its online payment license | 80.00% | 80.00% | |||||||
Amount of remaining consideration to be settled within 10 days after renews its online payment license | ¥ | ¥ 287,280 |
CONDENSED FINANCIAL INFORMAT100
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Narrative) (Details) - Dec. 31, 2015 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY [Abstract] | ||
PRC Subsidiary and VIEs restricted amount | $ 73,187 | ¥ 474,093 |
CONDENSED FINANCIAL INFORMAT101
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Balance Sheets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2012CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | $ 61,851 | ¥ 400,657 | $ 74,957 | ¥ 485,556 | ¥ 544,318 | ¥ 31,555 |
Time deposits | 188,459 | 1,220,797 | 415,903 | |||
Other current assets | 2,438 | 15,799 | 11,251 | |||
Total current assets | 264,300 | 1,712,086 | 1,256,403 | |||
Non-current assets: | ||||||
Property and equipment, net | 6,822 | 44,194 | 41,075 | |||
Total non-current assets | 57,491 | 372,411 | 63,289 | |||
TOTAL ASSETS | 321,791 | 2,084,497 | 1,319,692 | |||
Current liabilities: | ||||||
Accrued payroll and welfare payable | 2,453 | 15,890 | 30,634 | |||
Accrued expenses and other liabilities | 21,707 | 140,612 | 117,992 | |||
Total current liabilities | 24,363 | 157,822 | 157,876 | |||
TOTAL LIABILITIES | 33,677 | 218,161 | 202,070 | |||
Shareholders' equity: | ||||||
Additional paid-in capital | 312,200 | 2,022,369 | ¥ 1,106,234 | |||
Treasury shares | (1,354) | (8,773) | ||||
Accumulated other comprehensive income | 13,815 | 89,488 | ¥ 22,637 | |||
Accumulated deficit | (51,771) | (335,363) | (11,370) | |||
Total shareholder's equity | 272,912 | 1,767,863 | 1,117,622 | |||
TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | 321,791 | 2,084,497 | 1,319,692 | |||
Class A Ordinary shares [Member] | ||||||
Shareholders' equity: | ||||||
Ordinary shares, value | 17 | 110 | 85 | |||
Class B Ordinary shares [Member] | ||||||
Shareholders' equity: | ||||||
Ordinary shares, value | 5 | 32 | 36 | |||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 3,179 | 20,594 | $ 14,472 | 93,748 | ¥ 369,936 | ¥ 3,500 |
Time deposits | 158,385 | 1,025,989 | 372,450 | |||
Other current assets | 789 | 5,246 | 5,964 | |||
Amounts due from intergroup companies | 39,049 | 252,816 | 51,178 | |||
Total current assets | 201,402 | 1,304,645 | 523,340 | |||
Non-current assets: | ||||||
Investment in subsidiaries and VIEs | 75,006 | 485,874 | 619,032 | |||
Property and equipment, net | 62 | 402 | 462 | |||
Total non-current assets | 75,068 | 486,276 | 619,494 | |||
TOTAL ASSETS | 276,470 | 1,790,921 | 1,142,834 | |||
Current liabilities: | ||||||
Accrued payroll and welfare payable | 22 | 145 | 62 | |||
Accrued expenses and other liabilities | 1,347 | 8,736 | 11,217 | |||
Amounts due to intergroup companies | 2,189 | 14,177 | 13,933 | |||
Total current liabilities | 3,558 | 23,058 | 25,212 | |||
TOTAL LIABILITIES | 3,558 | 23,058 | 25,212 | |||
Shareholders' equity: | ||||||
Additional paid-in capital | 312,200 | 2,022,369 | ¥ 1,106,234 | |||
Treasury shares | (1,354) | (8,773) | ||||
Accumulated other comprehensive income | 13,815 | 89,488 | ¥ 22,637 | |||
Accumulated deficit | (51,771) | (335,363) | (11,370) | |||
Total shareholder's equity | 272,912 | 1,767,863 | 1,117,622 | |||
TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | 276,470 | 1,790,921 | 1,142,834 | |||
Parent Company [Member] | Class A Ordinary shares [Member] | ||||||
Shareholders' equity: | ||||||
Ordinary shares, value | 17 | 110 | 85 | |||
Parent Company [Member] | Class B Ordinary shares [Member] | ||||||
Shareholders' equity: | ||||||
Ordinary shares, value | $ 5 | ¥ 32 | ¥ 36 |
CONDENSED FINANCIAL INFORMAT102
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Balance Sheets) (Parenthetical) (Details) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.00005 | ||
Ordinary shares, shares authorized | 1,000,000,000 | ||
Class A Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 700,000,000 | 700,000,000 | |
Ordinary shares, shares issued | 334,034,932 | 254,844,582 | 66,539,000 |
Ordinary shares, shares outstanding | 334,034,932 | 254,844,582 | 66,539,000 |
Class B Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 | |
Ordinary shares, shares issued | 84,999,159 | 96,634,529 | 262,197,451 |
Ordinary shares, shares outstanding | 84,999,159 | 96,634,529 | 262,197,451 |
Parent Company [Member] | Class A Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 700,000,000 | 700,000,000 | |
Ordinary shares, shares issued | 334,034,932 | 254,844,582 | |
Ordinary shares, shares outstanding | 334,034,932 | 254,844,582 | |
Parent Company [Member] | Class B Ordinary shares [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | |
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 | |
Ordinary shares, shares issued | 84,999,159 | 96,634,529 | |
Ordinary shares, shares outstanding | 84,999,159 | 96,634,529 |
CONDENSED FINANCIAL INFORMAT103
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Statements of Comprehensive Income) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Operating expenses: | ||||
Sales and marketing | $ (13,434) | ¥ (87,022) | ¥ (173,883) | ¥ (84,596) |
General and administrative | $ (35,852) | ¥ (232,244) | (156,309) | ¥ (73,190) |
Write-off of deferred offering expenses | (3,241) | |||
Other operating expenses | $ (459) | ¥ (2,975) | (4,527) | ¥ (2,678) |
Operating profit (loss) | (46,529) | (301,408) | 149,507 | 59,918 |
Interest income | 3,178 | 20,589 | 17,009 | 2,058 |
Interest expense | $ (330) | ¥ (2,138) | ¥ (356) | (5,407) |
Changes in fair value of derivative component of the convertible note | (26,809) | |||
Income (loss) before income tax | $ (43,570) | ¥ (282,240) | ¥ 165,036 | 29,760 |
Income tax benefit | (6,479) | (41,969) | (7,987) | 76,294 |
Net income (loss) attributable to 500.com Limited | (50,001) | (323,897) | 157,049 | 106,054 |
Comprehensive income(loss) attributable to 500.com Limited | $ (39,681) | ¥ (257,046) | ¥ 169,194 | ¥ 100,558 |
Parent Company [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net Revenues | ||||
Operating expenses: | ||||
Sales and marketing | $ (51) | ¥ (330) | ¥ (214) | |
General and administrative | $ (2,032) | ¥ (13,160) | (11,875) | ¥ (952) |
Write-off of deferred offering expenses | (3,241) | |||
Total operating expenses | $ (2,083) | ¥ (13,490) | (15,330) | ¥ (952) |
Operating profit (loss) | (2,083) | (13,490) | (15,330) | (952) |
Interest income | $ 1,344 | ¥ 8,703 | ¥ 10,920 | 246 |
Interest expense | (4,712) | |||
Changes in fair value of derivative component of the convertible note | (26,809) | |||
Equity in profits (losses) of subsidiaries and VIEs | $ (49,262) | ¥ (319,110) | ¥ 161,459 | 120,741 |
Income (loss) before income tax | $ (50,001) | ¥ (323,897) | ¥ 157,049 | 88,514 |
Income tax benefit | 17,540 | |||
Net income (loss) attributable to 500.com Limited | $ (50,001) | ¥ (323,897) | ¥ 157,049 | 106,054 |
Other comprehensive income (loss), Foreign currency translation (loss) gain | 10,320 | 66,851 | 12,145 | (5,496) |
Comprehensive income(loss) attributable to 500.com Limited | $ (39,681) | ¥ (257,046) | ¥ 169,194 | ¥ 100,558 |
CONDENSED FINANCIAL INFORMAT104
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Statements of Cash Flows) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash generated from (used in) operating activities | $ 6,542 | ¥ 42,375 | ¥ 250,553 | ¥ 29,170 |
Net cash used in investing activities | (142,343) | (922,063) | (395,744) | 51,965 |
Net cash generated from financing activities | 115,543 | 748,461 | 84,922 | 436,440 |
Effect of exchange rate changes on cash and cash equivalents | 7,152 | 46,328 | 1,507 | (4,812) |
Net increase (decrease) in cash and cash equivalents | (13,106) | (84,899) | (58,762) | 512,763 |
Cash and cash equivalents at beginning of the year | 74,957 | 485,556 | 544,318 | 31,555 |
Cash and cash equivalents at end of the year | 61,851 | 400,657 | 485,556 | 544,318 |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash generated from (used in) operating activities | (350) | (2,266) | (26,721) | 7,387 |
Net cash used in investing activities | (133,683) | (865,971) | (293,289) | (116,035) |
Net cash generated from financing activities | 115,588 | 748,755 | 42,315 | 479,896 |
Effect of exchange rate changes on cash and cash equivalents | 7,152 | 46,328 | 1,507 | (4,812) |
Net increase (decrease) in cash and cash equivalents | (11,293) | (73,154) | (276,188) | 366,436 |
Cash and cash equivalents at beginning of the year | 14,472 | 93,748 | 369,936 | 3,500 |
Cash and cash equivalents at end of the year | $ 3,179 | ¥ 20,594 | ¥ 93,748 | ¥ 369,936 |