Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
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 | Accelerated Filer |
Trading Symbol | WBAI |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 335,494,792 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 74,400,299 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 673,102 | $ 96,947 | ¥ 400,657 |
Restricted cash | 3,704 | 533 | 10,599 |
Time deposits | 804,692 | 115,900 | 1,220,797 |
Short-term investments | 100,000 | 14,403 | 45,540 |
Accounts receivable | 3,638 | ||
Prepayments and other current assets | 125,534 | 18,078 | 30,855 |
Total current assets | 1,707,032 | 245,861 | 1,712,086 |
Non-current assets: | |||
Property and equipment, net | 53,935 | 7,768 | 44,194 |
Intangible assets, net | 61,547 | 8,865 | 200,148 |
Goodwill | 160,438 | 23,108 | 64,899 |
Deposits | 5,810 | 837 | 1,217 |
Long-term investments | 85,459 | 12,309 | 60,332 |
Other non-current assets | 2,671 | 386 | 1,621 |
Total non-current assets | 369,860 | 53,273 | 372,411 |
TOTAL ASSETS | 2,076,892 | 299,134 | 2,084,497 |
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to 500.com Limited of RMB106 and Nil as of December 31, 2015 and 2016, respectively) | 106 | ||
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB14,896 and RMB15,846 (US$2,282) as of December 31, 2015 and 2016, respectively) | 16,270 | 2,343 | 15,890 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB127,897 and RMB67,166 (US$9,674) as of December 31, 2015 and 2016, respectively) | 184,155 | 26,524 | 140,612 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB1,061 and RMB8,897 (US$1,281) as of December 31, 2015 and 2016, respectively) | 9,050 | 1,303 | 1,214 |
Total current liabilities | 209,475 | 30,170 | 157,822 |
Non-current liabilities: | |||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB45,380 and RMB 42,705 (US$6,152) as of December 31, 2015 and 2016, respectively) | 44,472 | 6,405 | 46,928 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB 13,411 and RMB 14,902(US$2,145) as of December 31, 2015 and 2016, respectively) | 14,902 | 2,146 | 13,411 |
Total non-current liabilities | 59,374 | 8,551 | 60,339 |
TOTAL LIABILITIES | 268,849 | 38,721 | 218,161 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Additional paid-in capital | 2,198,385 | 316,633 | 2,022,369 |
Treasury shares | (123,258) | (17,753) | (8,773) |
Accumulated other comprehensive income | 172,589 | 24,858 | 89,488 |
Accumulated deficit | (538,328) | (77,535) | (335,363) |
Total shareholder's equity | 1,709,531 | 246,224 | 1,767,863 |
Noncontrolling interests | 98,512 | 14,189 | 98,473 |
Total shareholders' equity | 1,808,043 | 260,413 | 1,866,336 |
TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY | 2,076,892 | 299,134 | 2,084,497 |
Class A Ordinary shares [Member] | |||
Shareholders’ equity: | |||
Ordinary shares, value | 115 | 17 | 110 |
Class B Ordinary shares [Member] | |||
Shareholders’ equity: | |||
Ordinary shares, value | ¥ 28 | $ 4 | ¥ 32 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares |
Accounts payable (including accounts payable of the consolidated VIEs without recourse to 500.com Limited of RMB106 and Nil as of December 31, 2015 and 2016, respectively) | ¥ 106 | |||||
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB14,896 and RMB15,847 (US$2,282) as of December 31, 2015 and 2016, respectively) | 16,270 | 2,343 | 15,890 | |||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB127,897 and RMB67,166 (US$9,674) as of December 31, 2015 and 2016, respectively) | 184,155 | 26,524 | 140,612 | |||
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB1,061 and RMB8,897 (US$1,281) as of December 31, 2015 and 2016, respectively) | 9,050 | 1,303 | 1,214 | |||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB45,380 and RMB 42,705 (US$6,151) as of December 31, 2015 and 2016, respectively) | 44,472 | 6,405 | 46,928 | |||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB 13,411 and RMB 14,902(US$2,146) as of December 31, 2015 and 2016, respectively) | ¥ 14,902 | $ 2,146 | ¥ 13,411 | |||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | ||||
Class A Ordinary shares [Member] | ||||||
Ordinary shares, par value | $ / shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||
Ordinary shares, shares authorized | 700,000,000 | 700,000,000 | 700,000,000 | 700,000,000 | ||
Ordinary shares, shares issued | 335,494,792 | 335,494,792 | 334,034,932 | 254,844,582 | 66,539,000 | |
Ordinary shares, shares outstanding | 335,494,792 | 335,494,792 | 334,034,932 | 254,844,582 | 66,539,000 | |
Class B Ordinary shares [Member] | ||||||
Ordinary shares, par value | $ / shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | ||
Ordinary shares, shares issued | 74,400,299 | 74,400,299 | 84,999,159 | 96,634,529 | 262,197,451 | |
Ordinary shares, shares outstanding | 74,400,299 | 74,400,299 | 84,999,159 | 96,634,529 | 262,197,451 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to 500.com Limited of RMB106 and Nil as of December 31, 2015 and 2016, respectively) | ¥ 106 | |||||
Accrued payroll and welfare payable (including accrued payroll and welfare payable of the consolidated VIEs without recourse to 500.com Limited of RMB14,896 and RMB15,847 (US$2,282) as of December 31, 2015 and 2016, respectively) | 15,846 | 2,282 | 14,896 | |||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB127,897 and RMB67,166 (US$9,674) as of December 31, 2015 and 2016, respectively) | 67,166 | 9,674 | 127,897 | |||
Income tax payable (including income tax payable of the consolidated VIEs without recourse to 500.com Limited of RMB1,061 and RMB8,897 (US$1,281) as of December 31, 2015 and 2016, respectively) | 8,897 | 1,281 | 1,061 | |||
Long-term payables (including long-term payables of the consolidated VIEs without recourse to 500.com Limited of RMB45,380 and RMB 42,705 (US$6,151) as of December 31, 2015 and 2016, respectively) | 42,705 | 6,152 | 45,380 | |||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to 500.com Limited of RMB 13,411 and RMB 14,902(US$2,146) as of December 31, 2015 and 2016, respectively) | ¥ 14,902 | $ 2,145 | ¥ 13,411 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | |
Net Revenues | ¥ 10,928 | $ 1,574 | ¥ 99,552 | ¥ 579,717 |
Operating costs and expenses: | ||||
Cost of services | (14,141) | (2,037) | (24,355) | (53,909) |
Sales and marketing | (44,921) | (6,470) | (87,022) | (173,883) |
General and administrative | (247,688) | (35,674) | (232,244) | (156,309) |
Service development expenses | (71,595) | (10,312) | (63,296) | (59,398) |
Write-off of deferred offering expenses | (3,241) | |||
Total operating expenses | (378,345) | (54,493) | (406,917) | (446,740) |
Other operating income | 2,732 | 393 | 6,910 | 17,414 |
Government grant | 10,017 | 1,443 | 2,022 | 3,643 |
Indemnity cost | (9,979) | (1,500) | ||
Other operating expenses | (1,915) | (213) | (2,975) | (4,527) |
Operating profit (loss) | (366,562) | (52,796) | (301,408) | 149,507 |
Interest income | 23,859 | 3,436 | 20,589 | 17,009 |
Interest expense | (2,138) | (356) | ||
Loss from equity method investments | (406) | (58) | (407) | |
Gain from disposal of subsidiaries | 136,914 | 19,720 | ||
Changes in fair value of the structured deposits | 1,124 | (1,124) | ||
Income (loss) before income tax | (206,195) | (29,698) | (282,240) | 165,036 |
Income tax expense | (3,057) | (440) | (41,969) | (7,987) |
Net income (loss) | (209,252) | (30,138) | (324,209) | 157,049 |
Less: Net loss attributable to the noncontrolling interests | (6,287) | (906) | (312) | |
Net income (loss) attributable to 500.com Limited | (202,965) | (29,232) | (323,897) | 157,049 |
Other comprehensive income: | ||||
Foreign currency translation gain | 82,347 | 11,860 | 66,851 | 12,145 |
Change in fair value of available for sale investments | 754 | 109 | ||
Other comprehensive income net of tax | 83,101 | 11,969 | 66,851 | 12,145 |
Comprehensive income (loss) | (126,151) | (18,169) | (257,358) | 169,194 |
Less: Comprehensive loss attributable to noncontrolling interests | (6,287) | (906) | (312) | |
Comprehensive income (loss) attributable to 500.com Limited | ¥ (119,864) | $ (17,263) | ¥ (257,046) | ¥ 169,194 |
Earnings (losses) per share for Class A and Class B ordinary shares outstanding: | ||||
Basic | (per share) | ¥ (0.49) | $ (0.07) | ¥ (0.84) | ¥ 0.46 |
Diluted | (per share) | (0.49) | (0.07) | (0.84) | 0.44 |
Earnings (losses) per American Depositary Share ("ADS") (1 ADS represents 10 Class A ordinary shares) | ||||
Basic | (per share) | (4.89) | (0.70) | (8.40) | 4.62 |
Diluted | (per share) | ¥ (4.89) | $ (0.70) | ¥ (8.40) | ¥ 4.39 |
Weighted average number of Class A and Class B ordinary shares outstanding: | ||||
Basic | 414,872,756 | 414,872,756 | 385,590,213 | 339,782,819 |
Diluted | 414,872,756 | 414,872,756 | 385,590,213 | 357,848,704 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Cash flow from operating activities | ||||
Net income (loss) | ¥ (209,252) | $ (30,138) | ¥ (324,209) | ¥ 157,049 |
Adjustments to reconcile net income to net cash provided in operating activities: | ||||
Depreciation of property and equipment | 12,865 | 1,853 | 10,209 | 8,653 |
Amortization of intangible assets | 6,846 | 986 | 1,361 | 1,634 |
Deferred tax (benefit) expense | (496) | (71) | 40,079 | (23,931) |
Share-based compensation | 163,341 | 23,526 | 158,628 | 89,922 |
(Gain) loss on disposal of property and equipment | 15 | 2 | 228 | (2) |
Impairment loss on equity investment | 3,440 | 495 | 5,000 | |
Provision for bad debt | 200 | 29 | 19,848 | |
Write-off of deferred offering expenses | 3,241 | |||
Changes in fair value of the structured deposit | (1,124) | 1,124 | ||
Loss from equity method investments | 406 | 58 | 407 | |
Reimbursement of American Depositary Receipt ("ADR") program related expenses | (1,390) | (200) | (2,648) | |
Gain on disposal of subsidiaries | (136,914) | (19,720) | ||
Accumulated deficit brought forward from acquired VIE | (96) | |||
Changes in operating assets and liabilities: | ||||
Account payable | 18 | 3 | ||
Accounts receivable | (4,360) | (628) | 51,062 | (11,923) |
Prepayments and other current assets | (4,347) | (626) | 137,652 | (42,511) |
Deposits | (4,759) | (685) | 8,854 | (4,132) |
Accrued expenses and other current liabilities | 55,359 | 7,972 | (43,114) | 37,831 |
Accrued payroll and welfare payable | 1,807 | 260 | (15,896) | 17,622 |
Long-term payables | (2,456) | (354) | 2,734 | 13,881 |
Income tax payable | 5,336 | 769 | (9,248) | 4,743 |
Net cash generated from (used in) operating activities | (114,341) | (16,469) | 42,375 | 250,553 |
Cash flows from investing activities | ||||
Acquisition of property and equipment | (26,888) | (3,873) | (10,214) | (15,469) |
Acquisition of intangible assets | (885) | (1,719) | ||
Cash received from disposal of subsidiary | 224,392 | 32,319 | ||
Acquisition of other non-current assets | (28,385) | (4,088) | (58,487) | (24,114) |
Restricted cash | 6,895 | 993 | 2,070 | 2,481 |
Cash paid for business combination, net of cash | (6,671) | (960) | (93,201) | |
Cash paid for short-term investments | (213,460) | (30,745) | (44,416) | (71,306) |
Cash paid for time deposits | (938,928) | (135,234) | (2,077,901) | (580,444) |
Cash received from return of time deposits | 1,386,854 | 199,749 | 1,290,692 | 294,818 |
Cash received from return of short-term investments | 100,000 | 14,403 | 70,182 | |
Proceeds from disposal of property and equipment | 24 | 3 | 97 | 9 |
Net cash (used in) generated from investing activities | 503,833 | 72,567 | (922,063) | (395,744) |
Cash flows from financing activities | ||||
Proceeds from short-term bank borrowings | 174,000 | 1,000 | ||
Repayment of short-term bank borrowings | (174,000) | (13,802) | ||
Cash received from release of restricted cash | 190,839 | 56,512 | ||
Cash paid for restricted cash | (190,839) | |||
Proceeds from the exercise of share options | 12,558 | 1,809 | 18,126 | 48,788 |
Proceeds from the private placement | 739,108 | |||
Repurchase of ordinary shares | (131,042) | (18,874) | (8,773) | |
Reimbursement of ADR program related expenses | 1,390 | 200 | 3,161 | |
Payment for public offering expenses | (10,737) | |||
Net cash generated from financing activities | (117,094) | (16,865) | 748,461 | 84,922 |
Effect of exchange rate changes on cash and cash equivalents | 47 | 7 | 46,328 | 1,507 |
Net (decrease) increase in cash and cash equivalents | 272,445 | 39,240 | (84,899) | (58,762) |
Cash and cash equivalents at beginning of the year | 400,657 | 57,707 | 485,556 | 544,318 |
Cash and cash equivalents at end of the year | 673,102 | 96,947 | 400,657 | 485,556 |
Supplemental disclosures of cash flow information: | ||||
Income tax paid | (51) | (7) | (9,439) | (15,836) |
Interest paid | (356) | |||
Interest received | ¥ 18,977 | $ 2,733 | ¥ 15,400 | ¥ 10,568 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Ordinary shares [Member]CNY (¥) | Ordinary shares [Member]USD ($) | Additional paid-in capital [Member]CNY (¥) | Additional paid-in capital [Member]USD ($) | Treasury shares [Member]CNY (¥) | Treasury shares [Member]USD ($) | Accumulated other comprehensive income (loss) [Member]CNY (¥) | Accumulated other comprehensive income (loss) [Member]USD ($) | Accumulated deficit [Member]CNY (¥) | Accumulated deficit [Member]USD ($) | Noncontrolling interests [Member]CNY (¥) | Noncontrolling interests [Member]USD ($) | Class A Ordinary shares [Member]Ordinary shares [Member]shares | Class B Ordinary shares [Member]Ordinary shares [Member]shares |
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 | ||||||||||||||
Change in fair value of available for sale investments | ||||||||||||||||
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 | (324,209) | (323,897) | (312) | |||||||||||||
Other comprehensive income (loss) | ||||||||||||||||
Foreign currency translation gain (loss) | 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 | |||||||||||||||
Change in fair value of available for sale investments | ||||||||||||||||
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 | |||||||||||||
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 | 1,866,336 | 142 | 2,022,369 | (8,773) | 89,488 | (335,363) | 98,473 | |||||||||
Balance, shares at Dec. 31, 2015 | shares | 334,034,932 | 84,999,159 | ||||||||||||||
Acquisition of shares of consolidated subsidiaries | 98,887 | 98,887 | ||||||||||||||
Net income (loss) for the year | (209,252) | $ (30,138) | (202,965) | (6,287) | ||||||||||||
Other comprehensive income (loss) | ||||||||||||||||
Foreign currency translation gain (loss) | 82,347 | 11,860 | 82,347 | |||||||||||||
Change in fair value of available for sale investments | 754 | $ 109 | 754 | |||||||||||||
Conversion of Class B to Class A ordinary shares | ||||||||||||||||
Conversion of Class B to Class A ordinary shares, shares | shares | 10,598,860 | (10,598,860) | ||||||||||||||
Issuance of ordinary shares from exercise of share options | ¥ 12,676 | 1 | 12,675 | |||||||||||||
Issuance of ordinary shares from exercise of share options, shares | shares | 2,276,320 | 2,276,320 | 2,276,320 | |||||||||||||
Disposal of shares of consolidated subsidiaries | ¥ (92,561) | (92,561) | ||||||||||||||
Repurchase of ordinary shares | (114,485) | (114,485) | ||||||||||||||
Repurchase of ordinary shares, shares | shares | (11,415,320) | |||||||||||||||
Share-based compensation | 163,341 | 163,341 | ||||||||||||||
Balance at Dec. 31, 2016 | ¥ 1,808,043 | $ 260,413 | ¥ 143 | $ 21 | ¥ 2,198,385 | $ 316,633 | ¥ (123,258) | $ (17,753) | ¥ 172,589 | $ 24,858 | ¥ (538,328) | $ (77,535) | ¥ 98,512 | $ 14,189 | ||
Balance, shares at Dec. 31, 2016 | shares | 335,494,792 | 74,400,299 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, the Company has subsidiaries incorporated in countries and jurisdictions including the People’s Republic of China (“PRC”), British Virgin Islands, Hong Kong, the United States of America (“USA”), United Kingdom of British (“UK”), and the Company also effectively controls a number of variable interest entities (“VIEs”), through the Primary Beneficiaries, as defined below. The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries. As of December 31, 2016, the Company’s major subsidiaries, VIEs and VIEs’ subsidiaries are as follows: Percentage of ownership Date of Place of by the Principal Entity establishment establishment Company 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 500.com Gaming UK Limited (“500.com UK”) August 5, 2016 UK 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 Qufan Internet Technology Inc. (“Qufan Cayman”) September 30, 2016 Cayman 51 % Investment Holding Qufan Internet Technology (HK) Limited (“Qufan HK”) October 18, 2016 Hong Kong 51 % Investment Holding Percentage of ownership Date of Place of by the Principal Entity establishment establishment Company activities 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 Technology”) 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 Subsidiaries of the VIEs 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 Caiyu Hudong Technology Co., Ltd. (“Shenzhen Caiyu”) ** March 5, 2015 PRC Sports Information Service Shenzhen Fenggu Network Technology Co., Ltd. (“Shenzhen Fenggu”) *** August 27, 2015 PRC - Online Lottery Service Beijing Baifengrun Science and Technology Co., Ltd. (“Baifengrun Technology”) **** June 13, 2014 PRC - Development, operation of mobile phone games Shenzhen Kaisheng Jinfu Enterprise Management Co., Ltd. (Shenzhen Kaisheng”) **** June 24, 2016 PRC - Online Spot Commodity Trading Services Shenzhen Qufan Network Technology Co., Ltd. (“Shenzhen Qufan”) **** September 13, 2013 PRC - Online Gaming * A subsidiary of E-Sun Network ** A subsidiary of E-Sun Sky Network *** A subsidiary of Shenzhen Yicai **** A subsidiary of Guangtiandi Technology The Company, its subsidiaries and VIEs are hereinafter collectively referred to as the “Group”. The Group provides online lottery purchase services, sports information and data services, online gaming services, and online spot commodity trading 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. As of As of As of December 31, 2015 December 31, 2016 December 31, 2016 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 141,655 257,001 37,016 Restricted cash 10,597 3,703 533 Short-term investments 45,540 - - Accounts receivable 102 - - Amounts due from intergroup companies 147,616 1,589 229 Prepayments and other current assets 23,676 109,032 15,704 Total current assets 369,186 371,325 53,482 Non-current assets: Property and equipment, net 40,018 46,986 6,767 Intangible assets, net 198,779 60,408 8,701 Deposits 828 4,397 633 Long-term investments 30,315 53,995 7,777 Other non-current assets 1,621 2,671 385 Goodwill 64,899 160,438 23,108 Total non-current assets 336,460 328,895 47,371 TOTAL ASSETS 705,646 700,220 100,853 LIABILITIES Current liabilities: Account payable 106 - - Amounts due to intergroup companies 132,938 69,423 10,000 Accrued payroll and welfare payable 14,896 15,846 2,282 Accrued expenses and other current liabilities 127,897 67,166 9,674 Income tax payable 1,061 8,897 1,281 Total current liabilities 276,898 161,332 23,237 Non-current liabilities: Deferred tax liability, non-current 13,411 14,902 2,145 Long-term payables 45,380 42,705 6,152 Total non-current liabilities 58,791 57,607 8,297 TOTAL LIABILITIES 335,689 218,939 31,534 For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net revenues 447,898 87,065 10,928 1,574 Net income (loss) 185,205 (130,330) (8,851) (1,275) For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net cash generated from (used in) operating activities 422,702 (83,113) (50,876) (7,328) Net cash (used in) generated from investing activities (107,041) (105,922) 166,222 23,941 Net cash used in financing activities (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, 2016. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
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 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 long-lived assets, long-term investments and goodwill, the purchase price allocation and fair value of non-controlling 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 Certain comparative amounts have been reclassified to conform with the current year’s presentation. 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. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$ 1.00 6.9430 Foreign currency The functional currency of the Company, BVI, 500wan HK, 500.com UK 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). The Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805 (“ASC 805”), “ Business Combinations” 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 “Net income (loss)” on the consolidated income statements includes the “net 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 Cash and cash equivalents represent cash on hand and time deposits, which have original maturities of three months or less 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 17,009 20,589 23,859 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. 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 years 5 % Motor vehicles 5-10 years 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 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 Online payment and other licenses 15 Mobile applications 5 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 2016, the Group performed a qualitative assessment for the reporting unit. 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, The Group evaluates its long-lived assets or asset group, including property and equipment and 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 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” “Derivatives and Hedging” The Group’s long-term investments consist of cost method investments, equity method investments and available-for-sale investments. In accordance with ASC 325, “ Investments-Other” 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” The equity method goodwill is not subsequently amortized and is not tested for impairment under ASC 350. 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. Available-for sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale investments is recognized in the consolidated statements of comprehensive income (loss) when the decline in value is determined to be other-than-temporary. Investments in limited partnerships greater than 3% to 5% Financial instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, structured deposit (Note 5), other receivables, long-term investments and accounts payable . As of December 31, 2015 and 2016, the carrying values of these financial instruments, other than the structured deposit, approximate their fair values due to their short-term maturities. The Group determined the fair value of the derivative redemption feature and the structured deposit with the assistance of an independent third party valuation firm. The Group applies ASC 820 (“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. Sports Information Services The Group offers a comprehensive sports information portal via a designated mobile application, which covers (i) real time soccer match information; and (ii) data-driven soccer match predictions generated by our proprietary analysis engine. Users can also post free or pay-per-view contents such as proprietary observations and analyses on the sports information portal. The users pay for each information and data subscription at a fixed price, and the Group pays the original information providers a fixed percentage of total purchase amount. Revenue is recognized when users is accessible to the pay-per-view contents. The Group records the revenue on a net basis because the Group is not the primary obligor to provide the information, but acts as an agent in providing such purchase services. Mobile Gaming Services The Group provides mobile gaming services through its designated mobile applications Night of Texas Hold’em Poker and Paiyou for Texas Hold’em Poker, and derives revenues from in-game virtual tokens and other virtual items in its game development operations. Once the users purchase virtual tokens or other virtual items through the Group’s own charging system, the Group has an implied obligation to provide the services which enable the virtual tokens or other virtual items to be displayed or used in the games. Thus, the Group initially records the proceeds received from the sales of virtual tokens and other virtual items as deferred revenue, and once they are consumed when the services are rendered to the respective paying players, the Group recognizes the attributable portion of the deferred revenue as revenue. For consumable virtual items representing items that are extinguished after consumption in the form of fixed charges levied on each round of games played, the Group recognizes revenue when the items are consumed and the related services are rendered, since the paying players will not continue to benefit from the virtual items thereafter. For durable virtual items that are accessible and beneficial to paying players over an extended period, the Group recognizes revenue ratably over the average life of durable virtual items for the applicable game, which the Group makes best estimates to be average playing period of paying players. The Group tracks each paying player’s log-in history to estimate the average playing period of paying players. While the Group believes its estimates to be reasonable based on sufficient available paying player information, it may revise such estimates in the future as the games’ operation periods change or there is indication that the similarities in characteristics and playing patterns of paying players of the games change. Any adjustments arising from changes in the estimates of the average paying player life would be applied prospectively. 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) 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 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 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, 2014, 2015 and 2016 of RMB 8,198 629 31 4.5 0.56 2.27 Sales and marketing expenses 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, 2014, 2015 and 2016 were approximately RMB 34,489 26,192 347 50 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 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” the capitalization criteria but the costs cannot be separated on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements. Service development expenses are recognized as expenses when incurred. Leases The Group leases certain office facilities under cancelable and non-cancelable operating leases, generally with an option to renew upon expiry of the lease term. In accordance with ASC 840, “ Leases” 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. 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 position if a tax return position or future tax position is “more likely than not” to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement. In conjunction with ASC 740, the Group also applied ASC 740-30 (“ASC 740-30”), “ Income Taxes: Other Considerations or Special Areas” 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 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, 2014, 2015 and 2016, the Group expensed deferred offering expenses of RMB 3,241 “Other assets and deferred costs” The Group computes earnings per Class A and Class B ordinary shares in accordance with ASC 260 (“ASC 260”), “ Earnings Per Share” 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 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) 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 in the consolidated statements of comprehensive income (loss) in proportion to the depreciation of the related assets. 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. In 2016, the Group accounts early adopted the ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes” requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. To comply with the guidance, the Group classified all deferred tax assets and liabilities as noncurrent in the current year and consolidated financial statements were not retrospectively adjusted. In May 2014, the Financial Accounting Standards Board, or the FASB, issued ASU No. 2014-09, “Revenue from Contracts with Customers” “Revenue Recognition” “Revenue from Contracts with Customers-Deferral of the effective date” In January 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”), “ Financial Instruments” In February 2016, the FASB issued ASU No. 2016-02, “Leases” In March 2016, the FASB issued ASU No. 2016-07, “InvestmentsEquity Method and Joint Ventures (Topic 323): Simplifying the Tra |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 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 79.1 85.1 amount of lottery pool contributed by the Group and (iii) the cost of additional prize money to be shared between the lottery administration centers and the Group. The significance of the Service Fees received from the three lottery administration centers are as follows: For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Lottery administration center A 260,096 48,277 - - Lottery administration center B 198,549 36,552 - - Lottery administration center C 121,628 11,245 - - Concentration of serviced lottery products Approximately 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 entities that had been approved by the Ministry of Finance (“MOF”) to conduct online sales of sports lottery products in PRC on behalf of China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in PRC, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the MOF for official commencement of online lottery sales in the PRC. However, since the operation of online sports lottery sales services by China Sports Lottery Administration Center itself is in a pilot phase and is subject to further approval by the MOF, the Group’s operation of online sales of sports lottery products may be subject to suspension if China Sports Lottery Administration Center fails to obtain such further approval from the MOF. On January 15, 2015, the MOF, the Ministry of Civil Affairs and the General Administration of Sports of the People’s Republic of China jointly promulgated the Notice on Issues related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales (the “ Notice”) On April 3, 2015, eight competent government authorities, namely, the MOF, the Ministry of Public Security, the State Administration for Industry and Commerce, the Ministry of Industry and Information Technology, Ministry of Civil Affairs, People’s Bank of China, the General Administration of Sports of China and China Banking Regulatory Commission, jointly released a public bulletin with regard to online lottery sales in China, or Bulletin 18. Bulletin 18 mandates, among other things, that (i) all institutions, online entities, or individuals which provide unauthorized online lottery sales services, either directly or through agents, shall immediately cease such services and all provincial governmental authorities of finance, civil affairs and sports shall investigate and sanction unauthorized online lottery sales in their respective jurisdictions according to relevant laws and regulations; and (ii) lottery issuance authorities that plan to sell lottery products online are required to obtain a consent from the Ministry of Civil Affairs or the General Administration of Sports of China in order to submit an application for written approval by the MOF. Although the Group is one of the two entities that had been approved by the MOF to conduct online sales of sports lottery products in PRC on behalf of China Sports Lottery Administration Center, the Group decided to voluntarily and temporarily suspend all of its lottery sales services on April 4, 2015. As of December 31, 2016, the online lottery sales business is still not recovered. On the basis of the current level of cash and cash equivalents, time deposits, short-term investments 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, 2016 | |
BUSINESS COMBINATION [Abstract] | |
BUSINESS COMBINATION | 4. BUSINESS COMBINATION Business Combination in 2016: Acquisition of Qufan Cayman, Qufan HK and Shenzhen Qufan: On November 25, 2016 (“the acquisition date”), the Group 51.0 (including Qufan Internet Technology (HK) Limited as wholly owned subsidiary) and Shenzhen Qufan Network Technology Co., Ltd. (together “Qufan”), an operator of mobile social poker games, for an aggregate cash consideration and contingent consideration of 110.5 15.9 The acquisition-date fair value of the consideration transferred totaled RMB 105,000 Amount RMB Fair value of consideration transferred Cash consideration 52,760 Contingent consideration 52,240 Total Consideration 105,000 As of December 31, 2016, the Group paid RMB 510 52,250 52,240 The contingent consideration arrangement requires the Group to pay the consideration of 57,840 31,000 52,240 The Group recognized RMB 2,661 The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. Amount Amortization Years RMB Cash 439 Mobile applications 60,200 5 Other receivables 10,363 Total identifiable assets acquired 71,002 Deferred tax liabilities (15,050) Other current liabilities (10,281) Total liabilities assumed (25,331) Net identifiable assets acquired 45,671 Noncontrolling interests 98,784 Total Consideration 105,000 Goodwill 158,113 Goodwill, which is not tax deductible, is primarily attributable to the synergies expected to be achieved from the acquisition. Mobile applications 5.0 The fair value of the 49 98,784 29 3 3 Since the acquisition date, Qufan contributed revenues of RMB 5,669 817 1,745 251 The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31 2015 and 2016, as if the acquisition had been completed on January 1, 2015. 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. For the years ended December 31,(unaudited) 2015 2016 2016 RMB RMB US$ Pro forma total revenues 99,921 27,379 3,943 Pro forma net loss (333,814) (217,359) (31,306) Pro forma net loss attributable to 500.com Limited (328,795) (209,921) (30,235) These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Qufan to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2015, together with the consequential tax effects. Acquisition of Shenzhen Caiyu: On July 25, 2016 (“the acquisition date”), Guangtiandi acquired 100.0 1.0 0.14 The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. Amount RMB Cash 700 Other receivables 635 Total identifiable assets acquired 1,335 Other current liabilities (2,660) Total liabilities assumed (2,660) Net identifiable liabilities acquired (1,325) Total Consideration 1,000 Goodwill 2,325 Since the acquisition date, Shenzhen Caiyu contributed revenues of RMB 1,792 258 424 61 The actual results of operation after the acquisition date and pro forma results of operations for the acquisition have not been presented because the effects were not material. Business Combination in 2015: Acquisition of Sumpay.cn: On December 20, 2015 (“the acquisition date”), the Group acquired 63 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 6,300 The Group recognized RMB 48 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 Total consideration 233,100 Goodwill 64,899 Goodwill, which is not tax deductible, is primarily attributable to the synergies expected to be achieved from the acquisition. Computer software 8.0 Online payment and other licenses 15.0 The fair value of the 37 98,785 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. 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, 2016 | |
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, 2015 Provision Gross Gross for Original unrealized unrealized decline Fair cost gains losses in value value RMB RMB RMB RMB RMB Assets Short-term investments; Structured deposits 45,540 - - - 45,540 As of December 31, 2016 Provision Gross Gross for Original unrealized unrealized decline Fair Fair cost gains losses in value value value RMB RMB RMB RMB RMB US$ Assets Short-term investments; Structured deposits 100,000 - - - 100,000 14,403 During the year ended December 31, 2015 and 2016, the change in fair value of the Structured deposits were nil. Long-term Investments Long-term investments consisted of the following: As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Cost Method Investments Private companies 31,351 45,156 6,504 Limited partnerships 8,092 19,137 2,756 Cost of cost method investments 39,443 64,293 9,260 Impairment loss on equity investment (5,000) (8,583) (1,236) Carrying amount of cost method investments 34,443 55,710 8,024 Equity Method Investments Private company 5,500 5,500 792 Limited partnership 20,796 20,796 2,995 Cost of equity method investments 26,296 26,296 3,787 Loss from equity method investment (407) (813) (117) Carrying amount of equity method investments 25,889 25,483 3,670 Available-for-sale investments Available-for-sale investments - 3,512 506 Change in fair value of available-for- sale investments - 754 109 Carrying amount of available-for-sale investments - 4,266 615 Total carrying amount of long-term investments 60,332 85,459 12,309 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 15 600 In June 2016, the Group acquired 0.84 10,000 In November 2016, the Group acquired 2 600 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 impairment loss of RMB 5,000 For the year ended December 31, 2016, the Group recognized an impairment loss of RMB 3,469 114 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 1.1 250 750 As of December 31, 2016, the Group had transferred an aggregate total of US$ 1,000 2016 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. In June 2016, the Group and Shanghai Jingyan Corporate Development Centre L.P. (“Jingyan”) entered into a subscription agreement, whereby the Group agreed to purchase a RMB 6,000 4.64 2,040 Jingyan’s investments are focused in the consulting services of corporate management, business information, exhibition, media and telecommunications sectors. Jingyan is scheduled to operate till the fifth anniversary of the Initial Contribution Date, unless terminated sooner or extended in accordance with the amended and restated limited partnership agreement. In December 2016, the Group and zPark Capital II , 1,000 2.0 1,000 zPark’s investment strategy is primarily to make venture capital investments, principally by investing in and holding equity and equity-oriented securities of privately held early-stage technology companies, with an emphasis on companies with a connection to China, Japan and other Asia markets. The general purposes of zPark are to buy, hold, sell and otherwise invest in Securities, whether readily marketable or not; to exercise all rights, powers, privileges and other incidents of ownership or possession with respect to Securities held or owned by zPark; to enter into, make and perform all contracts and other undertakings. zPark is scheduled to operate till the tenth anniversary of the Initial Contribution Date, 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. Available-for-sale investments In April 2016, the Group acquired 37,500ADS of the share capital of Yintech Investment Holdings Limited, a listed company on NASDAQ, at a consideration of US$ 506 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2016 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Accounts receivable 23,588 19,847 2,861 Less: Allowance for doubtful accounts (19,950) (19,847) (2,861) Accounts receivable, net 3,638 - - |
PREPAYMENTS, OTHER CURRENT ASSE
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
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 As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Receivables from third party payment service providers 888 13,450 1,936 Interest receivables 5,189 4,882 703 Deposit for share repurchase * - 16,557 2,385 Receivables of remaining consideration ** - 71,820 10,343 Deferred sponsorship and advertising expenses 1,963 - - Deposits receivable from merchants*** 6,970 - - Others 15,845 18,825 2,711 30,855 125,534 18,078 * Deposit for share repurchase represents cash paid in advance by the Group under the share repurchase program commenced in 2015. ** Receivables of remaining consideration represent the remaining cash consideration relating to the disposal of equity interest in Sumpay.cn as of December 31, 2016, which has been collected in March 2017. *** Deposits receivable from merchants represent cash paid in advance by Sumpay.cn to the local merchants for the prepaid card services. Sumpay.cn has been disposed in May 2016. Deposits consist of the following: As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Deposits for office leases and others 1,217 5,810 837 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Electronics and office equipment 46,911 37,846 5,451 Motor vehicles 10,686 11,783 1,697 Leasehold improvements 29,842 49,045 7,064 Property and equipment, cost 87,439 98,674 14,212 Less: Accumulated depreciation (43,245) (44,739) (6,444) Property and equipment, net 44,194 53,935 7,768 Depreciation expenses were approximately RMB 8,653 10,209 RMB 13,592 1,958 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
INTANGIBLE ASSETS, NET [Abstract] | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET Intangible assets consist of the following: As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Cost: Computer software 19,343 3,576 516 License agreement 800 800 115 Mobile applications - 60,200 8,671 Online payment and other licenses 185,698 - - Internet domain name 2,861 2,861 412 208,702 67,437 9,714 Accumulated amortization: Computer software (6,050) (2,320) (334) License agreement (800) (800) (115) Online payment and other licenses (344) (1,188) (171) Internet domain name (1,360) (1,582) (229) (8,554) (5,890) (849) Intangible assets, net 200,148 61,547 8,865 Amortization expenses were approximately RMB 1,634 1,361 6,846 369 RMB US$ 2017 12,769 1,839 2018 12,490 1,799 2019 12,398 1,786 2020 12,358 1,780 2021 and thereafter 11,532 1,661 61,547 8,865 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [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 As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Advance from end users* 35,352 34,388 4,953 Advance from prepaid cards** 62,138 - - Business tax and other taxes payable 675 3,280 472 Deferred government grant 11,757 5,018 723 Professional fees payable 9,842 15,136 2,180 Promotional events payables 5,439 7,921 1,141 Unpaid consideration for business combination*** 6,300 104,490 15,050 Others 9,109 13,922 2,005 140,612 184,155 26,524 * 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) payments received by the Group in advance from the end users prior to the purchase of sports information. ** Advance from prepaid cards represents the unused remaining value on the prepaid cards as at the balance sheet date. The balance as of December 31, 2016 was nil since Sumpay.cn has been disposed in May 2016. *** Unpaid consideration for business combination As of the date of the annual report, RMB 52,760 |
ACCUMULATED DEFICIT
ACCUMULATED DEFICIT | 12 Months Ended |
Dec. 31, 2016 | |
ACCUMULATED DEFICIT [Abstract] | |
ACCUMULATED DEFICIT | 11. ACCUMULATED DEFICIT The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiary only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiary. In accordance with the Regulations on Enterprises with Foreign Investment of China and its Articles of Association, the Company’s PRC subsidiary, E-Sun Sky Computer, being a foreign-invested enterprise established in the PRC, is required to provide for certain statutory reserves, namely the general reserve fund, enterprise expansion fund and staff welfare and bonus fund, all of which are appropriated from net profit as reported in its PRC statutory accounts. E-Sun Sky Computer is required to allocate at least 10 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, Shenzhen Caiyu, Shenzhen Kaisheng, and Shenzhen Qufan), 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 As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ PRC statutory reserved funds 29,486 30,224 4,353 Unreserved accumulated deficit (364,849) (568,552) (81,888) (335,363) (538,328) (77,535) 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 459,660 66,205 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, 2016 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. USA 500.com USA is incorporated in the USA and does not conduct any substantive operations of its own. No provision for USA income tax has been made in the financial statements as 500.com USA had no assessable income for the year ended December 31, 2016. British Virgin Islands Under the current laws of the British Virgin Islands, BVI is not subject to tax on income or capital gains. UK 500.com UK is incorporated in the UK and does not conduct any substantive operations of its own. No provision for UK income tax has been made in the financial statements as 500.com UK had no assessable income for the year ended December 31, 2016. 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 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 15 . For 2016, E-Sun Sky Network is subject to the EIT rate of 25% due to the suspension of online lottery sales 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. In November 2015, E-Sun Sky Computer obtained the certificate of “High-tech Enterprise” and was granted a preferential income tax rate of 15 12.5 . For 2016, E-Sun Sky Computer is 25 due to the suspension of online lottery sales. 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. 2013 was the first year of EIT exemption for Guangtiandi Technology. Guangtiandi Technology is subject to EIT at the rate of 0 12.5 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 Income (loss) before income taxes consists of: 2014 2015 2016 2016 RMB RMB RMB US$ Cayman Islands (94,331) (163,416) (179,348) (25,831) British Virgin Islands (4) - (31) (4) USA - (2,320) (3,809) (549) Hong Kong (838) (1,470) (10,524) (1,516) PRC 260,209 (115,034) (12,483) (1,798) 165,036 (282,240) (206,195) (29,698) The current and deferred components of the income tax expense appearing in the consolidated statements of comprehensive income (loss) are as follows: 2014 2015 2016 2016 RMB RMB RMB US$ Current tax expense (31,918) (1,890) (3,553) (511) Deferred tax benefit (expense) 23,931 (40,079) 496 71 Income tax expense (7,987) (41,969) (3,057) (440) The reconciliation of tax computed by applying the statutory income tax rate applicable to PRC operations to income tax (benefit) expense is as follows: 2014 2015 2016 2016 RMB RMB RMB US$ Income (loss) before income taxes 165,036 (282,240) (206,195) (29,698) Income tax computed at applicable tax rates (25%) 41,259 (70,560) (51,549) (7,425) Effect of different tax rates in different jurisdictions 1,313 1,206 4,743 682 Non-deductible expenses 28,103 47,324 54,588 7,862 Effect of tax holiday (16,170) - - - Effect of tax rate changes (38,747) (24,125) (1,841) (265) Change in valuation allowance 18 88,661 (5,144) (740) Changes in interest and penalties on unrecognized tax benefits (349) 3,920 3,105 447 Effect of EIT reversal for previous years (5,799) (2,099) 2,760 398 Research and development super-deduction (1,959) (2,363) (2,947) (424) Others 318 5 (658) (95) 7,987 41,969 3,057 440 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2014 2015 2016 2016 RMB RMB RMB US$ Balance at beginning of year 27,405 38,901 42,983 6,191 Increase relating to current year tax positions 18,014 7,496 3,630 523 Decrease relating to prior year tax positions (5,202) (1,119) (3,204) (461) Decrease relating to expiration of applicable statute of limitations (1,316) (2,295) (4,952) (713) Balance at end of year 38,901 42,983 38,457 5,540 At December 31 of 2014, 2015 and 2016, there are RMB 13,067 13,985 RMB 15,241 2,195 The Group recognizes interest accrued related to unrecognized tax benefits in taxation expenses. During the years ended December 31, 2014, 2015 and 2016, the Group recognized approximately RMB 2,119 4,534 4,932 710 2,469 614 1,827 263 2,963 6,884 9,989 1,439 2013 2016 The aggregate amount and per share effect of tax holidays are as follows: 2014 2015 2016 2016 RMB RMB RMB US$ The aggregate amount 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: 2015 2016 2016 RMB RMB US$ Deferred tax assets, current portion Accrued payroll and welfare payable 2,382 - - Deferred government grants 1,764 - - Bad debt provision 2,977 - - Less: valuation allowance (7,123) - - Total deferred tax assets, current portion - - - Deferred tax assets, non-current portion Advertising expenditure deductible in future years 65,305 58,654 8,448 Deferred government grants 1,217 2,417 348 Loss from equity method investment 102 203 29 Bad debt provision - 4,962 715 Accured rental expense - 817 118 Impairment loss - 1,250 180 Net operating losses (“NOLs”) 16,111 16,411 2,364 Less: valuation allowance (82,735) (84,714) (12,202) Total deferred tax assets, non-current portion - - - Deferred tax liabilities, non-current portion Online payment and other licenses arisen from business combination (13,411) (14,902) (2,146) Total deferred tax liabilities, non-current portion (13,411) (14,902) (2,146) 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, 2016, the Group had NOLs of approximately RMB 101,568 14,629 2017 2021 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 427,340 448,176 69,186 42,734 44,818 6,919 |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2016 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN [Abstract] | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 13. 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 10,042 12,587 15,591 2,246 |
SHARE-BASED PAYMENT
SHARE-BASED PAYMENT | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED PAYMENT [Abstract] | |
SHARE-BASED PAYMENT | 14. 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$, which is the functional currency of the Company. The board of directors has authorized under the Plan the issuance of up to 12 On April 8, 2011, the Company granted 13,864,000 0.40 5,506,600 5,225,800 1,565,800 1,565,800 On April 8, 2011, the Company granted 5,003,980 12,600,000 0.40 On October 22, 2013, the Company granted 2,660,000 0.40 600,000 1,620,000 220,000 220,000 On June 19, 2014, the Company granted 2,000,000 32,561,800 3.232 32.32 666,690 666,690 666,620 5,437,820 10,843,080 16,280,900 On June 29, 2015, the Company granted 200,000 2.55 66,670 66,670 66,660 On January 5, 2016, the Company granted 2,500,000 2.00 750,000 750,000 1,000,000 On January 6, 2016, the Company granted 600,000 1.851 On January 16, 2016, the Company granted 15,900,000 1.743 2,650,000 5,300,000 7,950,000 On December 16, 2016, the Company granted 600,000 1.35 A summary of share option activity and related information for the year ended December 31, 2016 is as follows: Weighted Weighted Weighted average average average grant date remaining Aggregated Number of exercise fair value per contractual intrinsic option price share year value US$ US$ (Years) US$’000 Outstanding, January 1, 2016 38,058,640 0.90 1.24 3.33 Granted 19,600,000 1.77 0.89 2.65 Forfeited - - - Exercised (2,276,320) 0.89 1.17 Outstanding, December 31, 2016 55,382,320 1.70 1.12 2.65 22,634 Vested and expected to vest at December 31, 2016 55,156,889 1.70 1.12 1.55 22,333 Exercisable at December 31, 2016 21,616,090 0.92 1.16 2.46 14,153 The aggregate intrinsic value in the table above represents the difference between the fair value of Company’s common share as of December 31, 2016 and the exercise price. Total intrinsic value of options granted to employees and directors exercised for the years ended December 31, 2015 and 2016 were RMB 49,625 11,051 1,592 No share options granted to the consultants were exercised during the years ended December 31, 2016. On June 8, 2012 (the “First Modification Date”), the Company modified the exercise price of both vested and unvested 13,740,000 88 0.4 0.2 In accordance with ASC 718, the effects of a modification resulted in incremental compensation cost of US$ 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 3.232 (US$ 32.32 1.00 (US$ 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 The incremental compensation cost of US$ 213 39,616 As of December 31, 2016, there was RMB 93,352 13,445 1.5 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 For the years ended December 31 2014 2015 2016 Expected volatility 50.39%~54.38% 51.96%~56.23% 70.80%~77.52% Risk-free interest rate 0.65%~1.64% 1.06%~1.64% 1.13%~1.62% Dividend yield 0.00 % 0.00 % 0.00 % Forfeiture rate 0.00%~5.00% 0.00 % 0.00 % Suboptimal early exercise factor 2.2~2.8 2.8 2.2~2.8 The total fair value of the vested equity awards granted to the employees and directors during the years ended December 31, 2014, 2015 and 2016 were RMB 21,946 63,200 127,333 18,340 The exercise price of options granted during the years 2015 and 2016, 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, 2015, and 2016 were US$ 1.07 0.89 Total share-based compensation 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 For the year ended December 31, 2016 Employees Directors Total Total RMB RMB RMB US$ Cost of services 2,993 - 2,993 431 Sales and marketing 13,966 - 13,966 2,012 General and administrative 114,244 7,114 121,358 17,479 Service development expenses 25,024 - 25,024 3,604 156,227 7,114 163,341 23,526 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS (a) Related parties Name of related parties Relationship with the Group Shenzhen Bozhi Consulting Co., Ltd. Entity controlled by the Chairman and 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, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16 COMMITMENTS AND CONTINGENCIES RMB US$ 2017 21,935 3,160 2018 20,535 2,957 2019 12,827 1,847 55,297 7,964 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The Group’s lease arrangements have no renewal options, rent escalation clauses, restrictions or contingent rents and are all conducted with third parties. For the years ended December 31, 2014, 2015 and 2016, total rental expenses for all operating leases amounted to approximately RMB 5,279 4,013 11,421 1,645 Income taxes As of December 31, 2015 and 2016, the Group has recognized approximately RMB 41,981 38,638 5,565 ,638 (US$5,565 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 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 accounts for guarantees in accordance with ASC topic 460 (“ASC 460”), Guarantees 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 as of December 31, 2015 and 2016. Indemnity Cost On September 12, 2016, the Group entered into an agreement, approved by the U.S. District Court to settle outstanding legal proceedings relating to a stockholder class action lawsuit during the period between November 22, 2013 and February 25, 2015 for USD 2,500 1,500 1,000 |
EARNINGS (LOSSES) PER SHARE
EARNINGS (LOSSES) PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | EARNINGS (LOSSES) PER SHARE For the years ended 2014 2015 2016 RMB RMB RMB RMB RMB US$ RMB US$ Class A Class B Class A Class B Class A Class A Class B Class B Earnings (losses) per sharebasic: Numerator: Allocation of net income (loss) attributable to 500.com Limited’s ordinary shareholders used in calculating income per ordinary sharebasic 74,478 82,571 (247,664) (76,233) (166,057) (23,917) (36,908) (5,315) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings (losses) per share 161,137,587 178,645,232 294,836,665 90,753,548 339,429,946 339,429,946 75,442,810 75,442,810 Denominator used for earnings (losses) per share 161,137,587 178,645,232 294,836,665 90,753,548 339,429,946 339,429,946 75,442,810 75,442,810 Earnings (losses) per sharebasic 0.46 0.46 (0.84) (0.84) (0.49) (0.07) (0.49) (0.07) 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 78,445 78,604 (247,664) (76,233) (166,057) (23,917) (36,908) (5,315) 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 78,604 - (76,233) - (36,908) (5,315) - - Net income (loss) attributable to ordinary shareholders 157,049 78,604 (323,897) (76,233) (202,965) (29,232) (36,908) (5,315) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings per share 161,137,587 178,645,232 294,836,665 90,753,548 339,429,946 339,429,946 75,442,810 75,442,810 Conversion of Class B to Class A ordinary shares 178,645,232 - 90,753,548 - 75,442,810 75,442,810 - - Share options 18,065,885 - - - - - - - Denominator used for earnings (losses) per share 357,848,704 178,645,232 385,590,213 90,753,548 414,872,756 414,872,756 75,442,810 75,442,810 Earnings (losses) per sharediluted 0.44 0.44 (0.84) (0.84) (0.49) (0.07) (0.49) (0.07) Earnings per ADS: Denominator used for earnings (losses) per ADS - basic 16,113,759 - 29,483,667 - 33,942,995 33,942,995 - - Denominator used for earnings (losses) per ADS - diluted 35,784,870 - 38,599,021 - 41,487,276 41,487,276 - - Earnings (losses) per ADS basic 4.62 - (8.40) - (4.89) (0.70) - - Earnings (losses) per ADS diluted 4.39 - (8.40) - (4.89) (0.70) - - |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2016 | |
ORDINARY SHARES [Abstract] | |
ORDINARY SHARES | 18. 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 and is convertible into one Class A ordinary share at any time by the holder thereof. 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 In 2016, 2,276,320 0.2 1.0 2,276,320 0.00005 US$ 2,032 11,415,320 17,240 335,494,792 74,400,299 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENT [Abstract] | |
FAIR VALUE MEASUREMENT | 19. FAIR VALUE MEASUREMENT In accordance with ASC 820-10, the Group measures available-for-sale investments, contingent consideration payable at fair value on a recurring basis. The fair value of the available-for-sale investments are measured based on the market price in an active 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. Fair value measurement at December 31, 2015 Quoted prices in active Significant Total fair markets for other Significant value at identical observable unobservable December 31, assets inputs inputs 2015 (Level 1) (Level 2) (Level 3) Total losses RMB RMB RMB RMB RMB Fair value disclosure Cash equivalents Fixed-rate investments 240,646 - 240,646 - - Adjustable-rate investments 42,501 - 42,501 - - Time deposits 1,220,797 - 1,220,797 - - Total 1,503,944 - 1,503,944 - - Fair value measurement Recurring Structured deposit (Note 5) 45,540 - 45,540 - - Non-recurring Long-term investments - - - - (5,000) Total 45,540 - 45,540 - (5,000) Assets and liabilities measured or disclosed at fair value are summarized below: Fair value measurement Total fair Quoted prices Significant Significant Total losses RMB US$ RMB RMB RMB RMB US$ Fair value disclosure Cash equivalents Fixed-rate investments 312,165 44,961 - 312,165 - - - Adjustable-rate investments 223,000 32,119 - 223,000 - - - Time deposits 804,692 115,900 - 804,692 - - - Total 1,339,857 192,980 - 1,339,857 - - - Fair value measurement Recurring Structured deposit (Note 5) 100,000 14,403 - 100,000 - - - Available-for-sale investments 4,266 615 4,266 - - - - Non-recurring Long-term investments - - - - - (3,583) (516) Total assets measured at fair value 104,266 15,018 4,266 100,000 - (3,583) (516) Fair value measurement Recurring Contingent consideration payable 52,240 7,524 - - 52,240 - - Total liabilities measured at fair value 52,240 7,524 - - 52,240 - - There were no transfers of fair value measurements into or out of Level 3 for the years ended December 31, 2014, 2015 and 2016. The Group has measured the contingent consideration payable at fair value on a recurring basis using significant unobservable inputs (Level 3) as of the years ended December 31, 2016. The significant unobservable inputs used in the fair value measurement and the corresponding impacts to the fair values are presented below: Valuation techniques Unobservable Estimation as of Change in Change in fair Contingent consideration payable Monte Carlo simulation technique Spot value of net income 31,698 Increase / (decrease) Increase / (decrease) Volatility of net income 10.00 % Increase / (decrease) (Decrease) / increase Expected annual growth rate of net income 0.00 % Increase / (decrease) Increase / (decrease) Discount factor 0.95 Increase / (decrease) (Decrease) / increase The following table presents a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2016: Contingent consideration payable RMB Balance as of December 31, 2015 - Recognized during the year 52,240 Balance as of December 31, 2016 52,240 Balance as of December 31, 2016 in US$ 7,524 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 20. 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” 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, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS Share repurchase program In February 2015, the Group’s board of directors approved a share repurchase program, which authorized the purchase of up to US$ 30 160,200 2.1 . Restricted stock units incentive plan On February 21 2017, The Group’s board of directors approved a 3 3 Shenzhen Qufan’s change in tax status On April 12, 2017, Shenzhen Qufan obtained approval for a tax holiday from the Shenzhen tax bureau, and is entitled to a 2 year tax exemption commencing from the first profitable year before December 31, 2017. In accordance with ASC 740, as approval form the tax bureau was granted in 2017, the change in tax status will be reflected in 2017 with a RMB 4,326 . |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2016 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 22. 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 459,660 66,205 Condensed balance sheets As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 20,594 341,671 49,211 Time deposits 1,025,989 700,637 100,913 Other current assets 5,246 23,728 3,418 Amounts due from intergroup companies 252,816 194,117 27,959 Total current assets 1,304,645 1,260,153 181,501 Non-current assets: Investment in subsidiaries and VIEs 485,874 566,267 81,559 Property and equipment, net 402 343 49 Total non-current assets 486,276 566,610 81,608 TOTAL ASSETS 1,790,921 1,826,763 263,109 As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued payroll and welfare payable 145 43 7 Accrued expenses and other liabilities 8,736 112,548 16,210 Amounts due to intergroup companies 14,177 4,641 668 Total current liabilities 23,058 117,232 16,885 TOTAL LIABILITIES 23,058 117,232 16,885 Shareholders’ equity: Class A Ordinary shares, par value US$0.00005 per share, 700,000,000 shares authorized as of December 31, 2015 and 2016; 334,034,932 and 335,494,792 shares issued and outstanding as of December 31, 2015 and 2016, respectively 110 115 17 Class B Ordinary shares, par value US$0.00005 per share; 300,000,000 shares authorized as of December 31, 2015 and 2016; 84,999,159 and 74,400,299 shares issued and outstanding as of December 31,2015 and 2016, respectively 32 28 4 Additional paid-in capital 2,022,369 2,198,385 316,633 Treasury shares (8,773) (123,258) (17,753) Accumulated other comprehensive income 89,488 172,589 24,858 Accumulated deficit (335,363) (538,328) (77,535) Total shareholder’s equity 1,767,863 1,709,531 246,224 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,790,921 1,826,763 263,109 Condensed statements of comprehensive income (loss) For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net Revenues - - - - Operating expenses: Sales and marketing (214) (330) (402) (58) General and administrative (11,875) (13,160) (15,934) (2,295) Write-off of deferred offering expenses (3,241) - - - Total operating expenses (15,330) (13,490) (16,336) (2,353) Indemnity cost - - (9,979) (1,500) Other operating income - - 39 7 Operating loss (15,330) (13,490) (26,276) (3,846) Interest income 10,920 8,703 10,269 1,479 Equity in profits (loss) of subsidiaries and VIEs 161,459 (319,110) (186,958) (26,865) Income (loss) before income tax 157,049 (323,897) (202,965) (29,232) Income tax benefit - - - - Net income (loss) 157,049 (323,897) (202,965) (29,232) Other comprehensive income Foreign currency translation gain 12,145 66,851 82,347 11,860 Comprehensive income (loss) 169,194 (257,046) (120,618) (17,372) Condensed statements of cash flows For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net cash (used in) generated from operating activities (26,721) (2,266) 25,679 3,699 Net cash (used in) generated from investing activities (293,289) (865,971) 413,401 59,542 Net cash generated from(used in) financing activities 42,315 748,755 (118,484) (17,065) Effect of exchange rate changes on cash and cash equivalents 1,507 46,328 481 69 Net (decrease) increase in cash and cash equivalents (276,188) (73,154) 321,077 46,245 Cash and cash equivalents at beginning of the year 369,936 93,748 20,594 2,966 Cash and cash equivalents at end of the year 93,748 20,594 341,671 49,211 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 under the equity method of accounting as prescribed in ASC 323, “ Investments-Equity Method and Joint Ventures”. The parent company’s condensed financial information should be read in conjunction with the Group’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 long-lived assets, long-term investments and goodwill, the purchase price allocation and fair value of non-controlling 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 |
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 6.9430 Foreign currency The functional currency of the Company, BVI, 500wan HK, 500.com UK 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 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 “Net income (loss)” on the consolidated income statements includes the “net 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 |
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 |
Restricted cash and Time deposits | 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 17,009 20,589 23,859 |
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. |
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 years 5 % Motor vehicles 5-10 years 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 Online payment and other licenses 15 Mobile applications 5 |
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 2016, the Group performed a qualitative assessment for the reporting unit. 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, |
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 property and equipment and 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 |
Short-term investments and Long-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” “Derivatives and Hedging” The Group’s long-term investments consist of cost method investments, equity method investments and available-for-sale investments. In accordance with ASC 325, “ Investments-Other” 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” The equity method goodwill is not subsequently amortized and is not tested for impairment under ASC 350. 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. Available-for sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale investments is recognized in the consolidated statements of comprehensive income (loss) when the decline in value is determined to be other-than-temporary. Investments in limited partnerships greater than 3% to 5% |
Fair Value measurements | Fair value measurements Financial instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, structured deposit (Note 5), other receivables, long-term investments and accounts payable . As of December 31, 2015 and 2016, the carrying values of these financial instruments, other than the structured deposit, approximate their fair values due to their short-term maturities. The Group determined the fair value of the derivative redemption feature and the structured deposit with the assistance of an independent third party valuation firm. The Group applies ASC 820 (“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. Sports Information Services The Group offers a comprehensive sports information portal via a designated mobile application, which covers (i) real time soccer match information; and (ii) data-driven soccer match predictions generated by our proprietary analysis engine. Users can also post free or pay-per-view contents such as proprietary observations and analyses on the sports information portal. The users pay for each information and data subscription at a fixed price, and the Group pays the original information providers a fixed percentage of total purchase amount. Revenue is recognized when users is accessible to the pay-per-view contents. The Group records the revenue on a net basis because the Group is not the primary obligor to provide the information, but acts as an agent in providing such purchase services. Mobile Gaming Services The Group provides mobile gaming services through its designated mobile applications Night of Texas Hold’em Poker and Paiyou for Texas Hold’em Poker, and derives revenues from in-game virtual tokens and other virtual items in its game development operations. Once the users purchase virtual tokens or other virtual items through the Group’s own charging system, the Group has an implied obligation to provide the services which enable the virtual tokens or other virtual items to be displayed or used in the games. Thus, the Group initially records the proceeds received from the sales of virtual tokens and other virtual items as deferred revenue, and once they are consumed when the services are rendered to the respective paying players, the Group recognizes the attributable portion of the deferred revenue as revenue. For consumable virtual items representing items that are extinguished after consumption in the form of fixed charges levied on each round of games played, the Group recognizes revenue when the items are consumed and the related services are rendered, since the paying players will not continue to benefit from the virtual items thereafter. For durable virtual items that are accessible and beneficial to paying players over an extended period, the Group recognizes revenue ratably over the average life of durable virtual items for the applicable game, which the Group makes best estimates to be average playing period of paying players. The Group tracks each paying player’s log-in history to estimate the average playing period of paying players. While the Group believes its estimates to be reasonable based on sufficient available paying player information, it may revise such estimates in the future as the games’ operation periods change or there is indication that the similarities in characteristics and playing patterns of paying players of the games change. Any adjustments arising from changes in the estimates of the average paying player life would be applied prospectively. 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) 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 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, 2014, 2015 and 2016 of RMB 8,198 629 31 4.5 0.56 2.27 |
Sales and marketing expenses | Sales and marketing expenses 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, 2014, 2015 and 2016 were approximately RMB 34,489 26,192 347 50 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” the capitalization criteria but the costs cannot be separated on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements. Service development expenses are recognized as expenses when incurred. |
Leases | Leases The Group leases certain office facilities under cancelable and non-cancelable operating leases, generally with an option to renew upon expiry of the lease term. In accordance with ASC 840, “ Leases” 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 position if a tax return position or future tax position is “more likely than not” to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement. 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 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, 2014, 2015 and 2016, the Group expensed deferred offering expenses of RMB 3,241 “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” 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) 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 in the consolidated statements of comprehensive income (loss) 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. |
Change in accounting principle | Change in accounting principle In 2016, the Group accounts early adopted the ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes” requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. To comply with the guidance, the Group classified all deferred tax assets and liabilities as noncurrent in the current year and consolidated financial statements were not retrospectively adjusted. |
Recent accounting pronouncements | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board, or the FASB, issued ASU No. 2014-09, “Revenue from Contracts with Customers” “Revenue Recognition” “Revenue from Contracts with Customers-Deferral of the effective date” In January 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”), “ Financial Instruments” In February 2016, the FASB issued ASU No. 2016-02, “Leases” 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” In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718)” In June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”), “Financial Instruments Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” other-than-temporary impairment model. The standard is effective for public business entities for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update No. 2016-18 (“ASU 2016-18”), “Statement of Cash Flows (Topic 230): Restricted Cash” In January 2017, the FASB issued Accounting Standards Update No. 2017-04(“ASU 2017-04”), “Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Variable Interest Entity | Percentage of ownership Date of Place of by the Principal Entity establishment establishment Company 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 500.com Gaming UK Limited (“500.com UK”) August 5, 2016 UK 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 Qufan Internet Technology Inc. (“Qufan Cayman”) September 30, 2016 Cayman 51 % Investment Holding Qufan Internet Technology (HK) Limited (“Qufan HK”) October 18, 2016 Hong Kong 51 % Investment Holding Percentage of ownership Date of Place of by the Principal Entity establishment establishment Company activities 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 Technology”) 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 Subsidiaries of the VIEs 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 Caiyu Hudong Technology Co., Ltd. (“Shenzhen Caiyu”) ** March 5, 2015 PRC Sports Information Service Shenzhen Fenggu Network Technology Co., Ltd. (“Shenzhen Fenggu”) *** August 27, 2015 PRC - Online Lottery Service Beijing Baifengrun Science and Technology Co., Ltd. (“Baifengrun Technology”) **** June 13, 2014 PRC - Development, operation of mobile phone games Shenzhen Kaisheng Jinfu Enterprise Management Co., Ltd. (Shenzhen Kaisheng”) **** June 24, 2016 PRC - Online Spot Commodity Trading Services Shenzhen Qufan Network Technology Co., Ltd. (“Shenzhen Qufan”) **** September 13, 2013 PRC - Online Gaming * A subsidiary of E-Sun Network ** A subsidiary of E-Sun Sky Network *** A subsidiary of Shenzhen Yicai **** A subsidiary of Guangtiandi Technology |
Variable Interest Entity, Primary Beneficiary [Member] | |
Carrying Amounts of Assets and Liabilities, Results of Operations and Cash Flows of VIEs | 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 As of As of December 31, 2015 December 31, 2016 December 31, 2016 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 141,655 257,001 37,016 Restricted cash 10,597 3,703 533 Short-term investments 45,540 - - Accounts receivable 102 - - Amounts due from intergroup companies 147,616 1,589 229 Prepayments and other current assets 23,676 109,032 15,704 Total current assets 369,186 371,325 53,482 Non-current assets: Property and equipment, net 40,018 46,986 6,767 Intangible assets, net 198,779 60,408 8,701 Deposits 828 4,397 633 Long-term investments 30,315 53,995 7,777 Other non-current assets 1,621 2,671 385 Goodwill 64,899 160,438 23,108 Total non-current assets 336,460 328,895 47,371 TOTAL ASSETS 705,646 700,220 100,853 LIABILITIES Current liabilities: Account payable 106 - - Amounts due to intergroup companies 132,938 69,423 10,000 Accrued payroll and welfare payable 14,896 15,846 2,282 Accrued expenses and other current liabilities 127,897 67,166 9,674 Income tax payable 1,061 8,897 1,281 Total current liabilities 276,898 161,332 23,237 Non-current liabilities: Deferred tax liability, non-current 13,411 14,902 2,145 Long-term payables 45,380 42,705 6,152 Total non-current liabilities 58,791 57,607 8,297 TOTAL LIABILITIES 335,689 218,939 31,534 For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net revenues 447,898 87,065 10,928 1,574 Net income (loss) 185,205 (130,330) (8,851) (1,275) For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net cash generated from (used in) operating activities 422,702 (83,113) (50,876) (7,328) Net cash (used in) generated from investing activities (107,041) (105,922) 166,222 23,941 Net cash used in financing activities (12,802) - - - |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Property and Equipment | Category Estimated Useful Life Estimated Residual Electronics and office equipment 3-5 years 5 % Motor vehicles 5-10 years 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 Online payment and other licenses 15 Mobile applications 5 |
CONCENTRATION OF RISKS (Tables)
CONCENTRATION OF RISKS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
CONCENTRATION OF RISKS [Abstract] | |
Significance of Service Fees Received from Lottery Administration Centers | For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Lottery administration center A 260,096 48,277 - - Lottery administration center B 198,549 36,552 - - Lottery administration center C 121,628 11,245 - - |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Qufan [Member] | |
Schedule of fair value of the consideration transferred at the acquisition date | Amount RMB Fair value of consideration transferred Cash consideration 52,760 Contingent consideration 52,240 Total Consideration 105,000 |
Summary of 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 439 Mobile applications 60,200 5 Other receivables 10,363 Total identifiable assets acquired 71,002 Deferred tax liabilities (15,050) Other current liabilities (10,281) Total liabilities assumed (25,331) Net identifiable assets acquired 45,671 Noncontrolling interests 98,784 Total Consideration 105,000 Goodwill 158,113 |
Schedule of acquired intangible assets have weighted average economic lives | Acquired intangible assets have weighted average economic lives from the date of purchase as follows: Mobile applications 5.0 |
Summary of unaudited pro forma information | The pro forma adjustments are based upon available information and certain assumptions that management believes are reasonable. For the years ended December 31,(unaudited) 2015 2016 2016 RMB RMB US$ Pro forma total revenues 99,921 27,379 3,943 Pro forma net loss (333,814) (217,359) (31,306) Pro forma net loss attributable to 500.com Limited (328,795) (209,921) (30,235) |
Shenzhen Caiyu [Member] | |
Summary of the fair values of the assets acquired and liabilities assumed at the acquisition date | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. Amount RMB Cash 700 Other receivables 635 Total identifiable assets acquired 1,335 Other current liabilities (2,660) Total liabilities assumed (2,660) Net identifiable liabilities acquired (1,325) Total Consideration 1,000 Goodwill 2,325 |
Sumpay.cn [Member] | |
Schedule of fair value of the consideration transferred at the acquisition date | 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 |
Summary of the fair values of the assets acquired and liabilities assumed at the acquisition date | 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 Total consideration 233,100 Goodwill 64,899 |
Schedule of acquired intangible assets have weighted average economic lives | 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 |
Summary of unaudited pro forma information | 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) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENTS [Abstract] | |
Schedule of short term investments | As of December 31, 2015 Provision Gross Gross for Original unrealized unrealized decline Fair cost gains losses in value value RMB RMB RMB RMB RMB Assets Short-term investments; Structured deposits 45,540 - - - 45,540 As of December 31, 2016 Provision Gross Gross for Original unrealized unrealized decline Fair Fair cost gains losses in value value value RMB RMB RMB RMB RMB US$ Assets Short-term investments; Structured deposits 100,000 - - - 100,000 14,403 |
Schedule of long term investments | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Cost Method Investments Private companies 31,351 45,156 6,504 Limited partnerships 8,092 19,137 2,756 Cost of cost method investments 39,443 64,293 9,260 Impairment loss on equity investment (5,000) (8,583) (1,236) Carrying amount of cost method investments 34,443 55,710 8,024 Equity Method Investments Private company 5,500 5,500 792 Limited partnership 20,796 20,796 2,995 Cost of equity method investments 26,296 26,296 3,787 Loss from equity method investment (407) (813) (117) Carrying amount of equity method investments 25,889 25,483 3,670 Available-for-sale investments Available-for-sale investments - 3,512 506 Change in fair value of available-for- sale investments - 754 109 Carrying amount of available-for-sale investments - 4,266 615 Total carrying amount of long-term investments 60,332 85,459 12,309 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACCOUNTS RECEIVABLE [Abstract] | |
Accounts Receivable and Related Allowance for Doubtful Accounts | 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, 2015 2016 2016 RMB RMB US$ Accounts receivable 23,588 19,847 2,861 Less: Allowance for doubtful accounts (19,950) (19,847) (2,861) Accounts receivable, net 3,638 - - |
PREPAYMENTS, OTHER CURRENT AS36
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS [Abstract] | |
Summary of Prepayments and Other Current Assets | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Receivables from third party payment service providers 888 13,450 1,936 Interest receivables 5,189 4,882 703 Deposit for share repurchase * - 16,557 2,385 Receivables of remaining consideration ** - 71,820 10,343 Deferred sponsorship and advertising expenses 1,963 - - Deposits receivable from merchants*** 6,970 - - Others 15,845 18,825 2,711 30,855 125,534 18,078 * Deposit for share repurchase represents cash paid in advance by the Group under the share repurchase program commenced in 2015. ** Receivables of remaining consideration represent the remaining cash consideration relating to the disposal of equity interest in Sumpay.cn as of December 31, 2016, which has been collected in March 2017. *** Deposits receivable from merchants represent cash paid in advance by Sumpay.cn to the local merchants for the prepaid card services. Sumpay.cn has been disposed in May 2016. |
Summary of Deposits | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Deposits for office leases and others 1,217 5,810 837 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Schedule of Property and Equipment | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Electronics and office equipment 46,911 37,846 5,451 Motor vehicles 10,686 11,783 1,697 Leasehold improvements 29,842 49,045 7,064 Property and equipment, cost 87,439 98,674 14,212 Less: Accumulated depreciation (43,245) (44,739) (6,444) Property and equipment, net 44,194 53,935 7,768 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Schedule of Intangible Assets | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Cost: Computer software 19,343 3,576 516 License agreement 800 800 115 Mobile applications - 60,200 8,671 Online payment and other licenses 185,698 - - Internet domain name 2,861 2,861 412 208,702 67,437 9,714 Accumulated amortization: Computer software (6,050) (2,320) (334) License agreement (800) (800) (115) Online payment and other licenses (344) (1,188) (171) Internet domain name (1,360) (1,582) (229) (8,554) (5,890) (849) Intangible assets, net 200,148 61,547 8,865 |
Schedule of Estimated Amortization Expense | RMB US$ 2017 12,769 1,839 2018 12,490 1,799 2019 12,398 1,786 2020 12,358 1,780 2021 and thereafter 11,532 1,661 61,547 8,865 |
ACCRUED EXPENSES AND OTHER CU39
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ Advance from end users* 35,352 34,388 4,953 Advance from prepaid cards** 62,138 - - Business tax and other taxes payable 675 3,280 472 Deferred government grant 11,757 5,018 723 Professional fees payable 9,842 15,136 2,180 Promotional events payables 5,439 7,921 1,141 Unpaid consideration for business combination*** 6,300 104,490 15,050 Others 9,109 13,922 2,005 140,612 184,155 26,524 * 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) payments received by the Group in advance from the end users prior to the purchase of sports information. ** Advance from prepaid cards represents the unused remaining value on the prepaid cards as at the balance sheet date. The balance as of December 31, 2016 was nil since Sumpay.cn has been disposed in May 2016. *** Unpaid consideration for business combination As of the date of the annual report, RMB 52,760 |
ACCUMULATED DEFICIT (Tables)
ACCUMULATED DEFICIT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACCUMULATED DEFICIT [Abstract] | |
Schedule of Accumulated Deficit | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ PRC statutory reserved funds 29,486 30,224 4,353 Unreserved accumulated deficit (364,849) (568,552) (81,888) (335,363) (538,328) (77,535) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES [Abstract] | |
Schedule of Income (Loss) before Income Taxes | 2014 2015 2016 2016 RMB RMB RMB US$ Cayman Islands (94,331) (163,416) (179,348) (25,831) British Virgin Islands (4) - (31) (4) USA - (2,320) (3,809) (549) Hong Kong (838) (1,470) (10,524) (1,516) PRC 260,209 (115,034) (12,483) (1,798) 165,036 (282,240) (206,195) (29,698) |
Schedule of Current and Deferred Components | 2014 2015 2016 2016 RMB RMB RMB US$ Current tax expense (31,918) (1,890) (3,553) (511) Deferred tax benefit (expense) 23,931 (40,079) 496 71 Income tax expense (7,987) (41,969) (3,057) (440) |
Reconciliation of Tax Computed Applying Statutory Income Tax Rate | 2014 2015 2016 2016 RMB RMB RMB US$ Income (loss) before income taxes 165,036 (282,240) (206,195) (29,698) Income tax computed at applicable tax rates (25%) 41,259 (70,560) (51,549) (7,425) Effect of different tax rates in different jurisdictions 1,313 1,206 4,743 682 Non-deductible expenses 28,103 47,324 54,588 7,862 Effect of tax holiday (16,170) - - - Effect of tax rate changes (38,747) (24,125) (1,841) (265) Change in valuation allowance 18 88,661 (5,144) (740) Changes in interest and penalties on unrecognized tax benefits (349) 3,920 3,105 447 Effect of EIT reversal for previous years (5,799) (2,099) 2,760 398 Research and development super-deduction (1,959) (2,363) (2,947) (424) Others 318 5 (658) (95) 7,987 41,969 3,057 440 |
Schedule of Unrecognized Tax Benefits Reconciliation | 2014 2015 2016 2016 RMB RMB RMB US$ Balance at beginning of year 27,405 38,901 42,983 6,191 Increase relating to current year tax positions 18,014 7,496 3,630 523 Decrease relating to prior year tax positions (5,202) (1,119) (3,204) (461) Decrease relating to expiration of applicable statute of limitations (1,316) (2,295) (4,952) (713) Balance at end of year 38,901 42,983 38,457 5,540 |
Summary of Aggregate Amount and per Share Effect of Tax Holidays | 2014 2015 2016 2016 RMB RMB RMB US$ The aggregate amount 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 | 2015 2016 2016 RMB RMB US$ Deferred tax assets, current portion Accrued payroll and welfare payable 2,382 - - Deferred government grants 1,764 - - Bad debt provision 2,977 - - Less: valuation allowance (7,123) - - Total deferred tax assets, current portion - - - Deferred tax assets, non-current portion Advertising expenditure deductible in future years 65,305 58,654 8,448 Deferred government grants 1,217 2,417 348 Loss from equity method investment 102 203 29 Bad debt provision - 4,962 715 Accured rental expense - 817 118 Impairment loss - 1,250 180 Net operating losses (“NOLs”) 16,111 16,411 2,364 Less: valuation allowance (82,735) (84,714) (12,202) Total deferred tax assets, non-current portion - - - Deferred tax liabilities, non-current portion Online payment and other licenses arisen from business combination (13,411) (14,902) (2,146) Total deferred tax liabilities, non-current portion (13,411) (14,902) (2,146) |
SHARE-BASED PAYMENT (Tables)
SHARE-BASED PAYMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED PAYMENT [Abstract] | |
Summary of Share Option Activity and Related Information | Share options granted to employees and directors Weighted Weighted Weighted average average average grant date remaining Aggregated Number of exercise fair value per contractual intrinsic option price share year value US$ US$ (Years) US$’000 Outstanding, January 1, 2016 38,058,640 0.90 1.24 3.33 Granted 19,600,000 1.77 0.89 2.65 Forfeited - - - Exercised (2,276,320) 0.89 1.17 Outstanding, December 31, 2016 55,382,320 1.70 1.12 2.65 22,634 Vested and expected to vest at December 31, 2016 55,156,889 1.70 1.12 1.55 22,333 Exercisable at December 31, 2016 21,616,090 0.92 1.16 2.46 14,153 |
Schedule of Assumptions Used to Estimate Fair Value of Share Options Granted | For the years ended December 31 2014 2015 2016 Expected volatility 50.39%~54.38% 51.96%~56.23% 70.80%~77.52% Risk-free interest rate 0.65%~1.64% 1.06%~1.64% 1.13%~1.62% Dividend yield 0.00 % 0.00 % 0.00 % Forfeiture rate 0.00%~5.00% 0.00 % 0.00 % Suboptimal early exercise factor 2.2~2.8 2.8 2.2~2.8 |
Schedule of Share-Based Compensation Expenses Relating to Options Granted | For the year ended December 31, 2014 Employees Directors Total Total RMB RMB RMB US$ 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 For the year ended December 31, 2016 Employees Directors Total Total RMB RMB RMB US$ Cost of services 2,993 - 2,993 431 Sales and marketing 13,966 - 13,966 2,012 General and administrative 114,244 7,114 121,358 17,479 Service development expenses 25,024 - 25,024 3,604 156,227 7,114 163,341 23,526 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Operating Lease Commitments | Operating lease commitments RMB US$ 2017 21,935 3,160 2018 20,535 2,957 2019 12,827 1,847 55,297 7,964 |
EARNINGS (LOSSES) PER SHARE (Ta
EARNINGS (LOSSES) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER SHARE [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | For the years ended 2014 2015 2016 RMB RMB RMB RMB RMB US$ RMB US$ Class A Class B Class A Class B Class A Class A Class B Class B Earnings (losses) per sharebasic: Numerator: Allocation of net income (loss) attributable to 500.com Limited’s ordinary shareholders used in calculating income per ordinary sharebasic 74,478 82,571 (247,664) (76,233) (166,057) (23,917) (36,908) (5,315) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings (losses) per share 161,137,587 178,645,232 294,836,665 90,753,548 339,429,946 339,429,946 75,442,810 75,442,810 Denominator used for earnings (losses) per share 161,137,587 178,645,232 294,836,665 90,753,548 339,429,946 339,429,946 75,442,810 75,442,810 Earnings (losses) per sharebasic 0.46 0.46 (0.84) (0.84) (0.49) (0.07) (0.49) (0.07) 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 78,445 78,604 (247,664) (76,233) (166,057) (23,917) (36,908) (5,315) 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 78,604 - (76,233) - (36,908) (5,315) - - Net income (loss) attributable to ordinary shareholders 157,049 78,604 (323,897) (76,233) (202,965) (29,232) (36,908) (5,315) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic earnings per share 161,137,587 178,645,232 294,836,665 90,753,548 339,429,946 339,429,946 75,442,810 75,442,810 Conversion of Class B to Class A ordinary shares 178,645,232 - 90,753,548 - 75,442,810 75,442,810 - - Share options 18,065,885 - - - - - - - Denominator used for earnings (losses) per share 357,848,704 178,645,232 385,590,213 90,753,548 414,872,756 414,872,756 75,442,810 75,442,810 Earnings (losses) per sharediluted 0.44 0.44 (0.84) (0.84) (0.49) (0.07) (0.49) (0.07) Earnings per ADS: Denominator used for earnings (losses) per ADS - basic 16,113,759 - 29,483,667 - 33,942,995 33,942,995 - - Denominator used for earnings (losses) per ADS - diluted 35,784,870 - 38,599,021 - 41,487,276 41,487,276 - - Earnings (losses) per ADS basic 4.62 - (8.40) - (4.89) (0.70) - - Earnings (losses) per ADS diluted 4.39 - (8.40) - (4.89) (0.70) - - |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENT [Abstract] | |
Summary of assets measured or disclosed at fair value | Assets measured or disclosed at fair value are summarized below: Fair value measurement at December 31, 2015 Quoted prices in active Significant Total fair markets for other Significant value at identical observable unobservable December 31, assets inputs inputs 2015 (Level 1) (Level 2) (Level 3) Total losses RMB RMB RMB RMB RMB Fair value disclosure Cash equivalents Fixed-rate investments 240,646 - 240,646 - - Adjustable-rate investments 42,501 - 42,501 - - Time deposits 1,220,797 - 1,220,797 - - Total 1,503,944 - 1,503,944 - - Fair value measurement Recurring Structured deposit (Note 5) 45,540 - 45,540 - - Non-recurring Long-term investments - - - - (5,000) Total 45,540 - 45,540 - (5,000) Assets and liabilities measured or disclosed at fair value are summarized below: Fair value measurement Total fair Quoted prices Significant Significant Total losses RMB US$ RMB RMB RMB RMB US$ Fair value disclosure Cash equivalents Fixed-rate investments 312,165 44,961 - 312,165 - - - Adjustable-rate investments 223,000 32,119 - 223,000 - - - Time deposits 804,692 115,900 - 804,692 - - - Total 1,339,857 192,980 - 1,339,857 - - - Fair value measurement Recurring Structured deposit (Note 5) 100,000 14,403 - 100,000 - - - Available-for-sale investments 4,266 615 4,266 - - - - Non-recurring Long-term investments - - - - - (3,583) (516) Total assets measured at fair value 104,266 15,018 4,266 100,000 - (3,583) (516) Fair value measurement Recurring Contingent consideration payable 52,240 7,524 - - 52,240 - - Total liabilities measured at fair value 52,240 7,524 - - 52,240 - - |
Significant unobservable inputs used in the fair value measurement and the corresponding impacts | Valuation techniques Unobservable Estimation as of Change in Change in fair Contingent consideration payable Monte Carlo simulation technique Spot value of net income 31,698 Increase / (decrease) Increase / (decrease) Volatility of net income 10.00 % Increase / (decrease) (Decrease) / increase Expected annual growth rate of net income 0.00 % Increase / (decrease) Increase / (decrease) Discount factor 0.95 Increase / (decrease) (Decrease) / increase |
Reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs | Contingent consideration payable RMB Balance as of December 31, 2015 - Recognized during the year 52,240 Balance as of December 31, 2016 52,240 Balance as of December 31, 2016 in US$ 7,524 |
CONDENSED FINANCIAL INFORMATI46
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Condensed Balance Sheets | As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 20,594 341,671 49,211 Time deposits 1,025,989 700,637 100,913 Other current assets 5,246 23,728 3,418 Amounts due from intergroup companies 252,816 194,117 27,959 Total current assets 1,304,645 1,260,153 181,501 Non-current assets: Investment in subsidiaries and VIEs 485,874 566,267 81,559 Property and equipment, net 402 343 49 Total non-current assets 486,276 566,610 81,608 TOTAL ASSETS 1,790,921 1,826,763 263,109 As of As of As of December 31, December 31, December 31, 2015 2016 2016 RMB RMB US$ LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued payroll and welfare payable 145 43 7 Accrued expenses and other liabilities 8,736 112,548 16,210 Amounts due to intergroup companies 14,177 4,641 668 Total current liabilities 23,058 117,232 16,885 TOTAL LIABILITIES 23,058 117,232 16,885 Shareholders’ equity: Class A Ordinary shares, par value US$0.00005 per share, 700,000,000 shares authorized as of December 31, 2015 and 2016; 334,034,932 and 335,494,792 shares issued and outstanding as of December 31, 2015 and 2016, respectively 110 115 17 Class B Ordinary shares, par value US$0.00005 per share; 300,000,000 shares authorized as of December 31, 2015 and 2016; 84,999,159 and 74,400,299 shares issued and outstanding as of December 31,2015 and 2016, respectively 32 28 4 Additional paid-in capital 2,022,369 2,198,385 316,633 Treasury shares (8,773) (123,258) (17,753) Accumulated other comprehensive income 89,488 172,589 24,858 Accumulated deficit (335,363) (538,328) (77,535) Total shareholder’s equity 1,767,863 1,709,531 246,224 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,790,921 1,826,763 263,109 |
Schedule of Condensed Statements of Comprehensive Income (loss) | For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net Revenues - - - - Operating expenses: Sales and marketing (214) (330) (402) (58) General and administrative (11,875) (13,160) (15,934) (2,295) Write-off of deferred offering expenses (3,241) - - - Total operating expenses (15,330) (13,490) (16,336) (2,353) Indemnity cost - - (9,979) (1,500) Other operating income - - 39 7 Operating loss (15,330) (13,490) (26,276) (3,846) Interest income 10,920 8,703 10,269 1,479 Equity in profits (loss) of subsidiaries and VIEs 161,459 (319,110) (186,958) (26,865) Income (loss) before income tax 157,049 (323,897) (202,965) (29,232) Income tax benefit - - - - Net income (loss) 157,049 (323,897) (202,965) (29,232) Other comprehensive income Foreign currency translation gain 12,145 66,851 82,347 11,860 Comprehensive income (loss) 169,194 (257,046) (120,618) (17,372) |
Schedule of Condensed Statements of Cash Flows | For the years ended December 31, 2014 2015 2016 2016 RMB RMB RMB US$ Net cash (used in) generated from operating activities (26,721) (2,266) 25,679 3,699 Net cash (used in) generated from investing activities (293,289) (865,971) 413,401 59,542 Net cash generated from(used in) financing activities 42,315 748,755 (118,484) (17,065) Effect of exchange rate changes on cash and cash equivalents 1,507 46,328 481 69 Net (decrease) increase in cash and cash equivalents (276,188) (73,154) 321,077 46,245 Cash and cash equivalents at beginning of the year 369,936 93,748 20,594 2,966 Cash and cash equivalents at end of the year 93,748 20,594 341,671 49,211 |
ORGANIZATION (Schedule of Varia
ORGANIZATION (Schedule of Variable Interest Entity) (Details) | 12 Months Ended | |
Dec. 31, 2016 | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Percentage of ownership by the Company | ||
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 | |
500.com UK [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Aug. 5, 2016 | |
Place of establishment | UK | |
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 | |
Qufan Cayman [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Sep. 30, 2016 | |
Place of establishment | Cayman | |
Percentage of ownership by the Company | 51.00% | |
Principal activities | Investment Holding | |
Qufan HK [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Oct. 18, 2016 | |
Place of establishment | Hong Kong | |
Percentage of ownership by the Company | 51.00% | |
Principal activities | Investment Holding | |
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 Caiyu [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Mar. 5, 2015 | [2] |
Place of establishment | PRC | [2] |
Percentage of ownership by the Company | [2] | |
Principal activities | Sports Information 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] |
Shenzhen Kaisheng [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Jun. 24, 2016 | [4] |
Place of establishment | PRC | [4] |
Percentage of ownership by the Company | [4] | |
Principal activities | Online Spot Commodity Trading Services | [4] |
Shenzhen Qufan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity And Subsidiaries [Line Items] | ||
Date of establishment | Sep. 13, 2013 | [4] |
Place of establishment | PRC | [4] |
Percentage of ownership by the Company | [4] | |
Principal activities | Online Gaming | [4] |
[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 |
ORGANIZATION (Carrying Amounts
ORGANIZATION (Carrying Amounts of Assets and Liabilities of VIEs) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 673,102 | $ 96,947 | ¥ 400,657 | $ 57,707 | ¥ 485,556 | ¥ 544,318 |
Restricted cash | 3,704 | 533 | 10,599 | |||
Short-term investments | 100,000 | 14,403 | 45,540 | |||
Accounts receivable | 3,638 | |||||
Prepayments and other current assets | 125,534 | 18,078 | 30,855 | |||
Total current assets | 1,707,032 | 245,861 | 1,712,086 | |||
Non-current assets: | ||||||
Property and equipment, net | 53,935 | 7,768 | 44,194 | |||
Intangible assets, net | 61,547 | 8,865 | 200,148 | |||
Deposits | 5,810 | 837 | 1,217 | |||
Long-term investments | 85,459 | 12,309 | 60,332 | |||
Other non-current assets | 2,671 | 386 | 1,621 | |||
Goodwill | 160,438 | 23,108 | 64,899 | |||
Total non-current assets | 369,860 | 53,273 | 372,411 | |||
TOTAL ASSETS | 2,076,892 | 299,134 | 2,084,497 | |||
Current liabilities: | ||||||
Account payable | 106 | |||||
Accrued payroll and welfare payable | 16,270 | 2,343 | 15,890 | |||
Accrued expenses and other current liabilities | 184,155 | 26,524 | 140,612 | |||
Income tax payable | 9,050 | 1,303 | 1,214 | |||
Total current liabilities | 209,475 | 30,170 | 157,822 | |||
Non-current liabilities: | ||||||
Deferred tax liability, non-current | 14,902 | 2,146 | 13,411 | |||
Long-term payables | 44,472 | 6,405 | 46,928 | |||
Total non-current liabilities | 59,374 | 8,551 | 60,339 | |||
TOTAL LIABILITIES | 268,849 | 38,721 | 218,161 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 257,001 | 37,016 | 141,655 | |||
Restricted cash | 3,703 | 533 | 10,597 | |||
Short-term investments | 45,540 | |||||
Accounts receivable | 102 | |||||
Amounts due from intergroup companies | 1,589 | 229 | 147,616 | |||
Prepayments and other current assets | 109,032 | 15,704 | 23,676 | |||
Total current assets | 371,325 | 53,482 | 369,186 | |||
Non-current assets: | ||||||
Property and equipment, net | 46,986 | 6,767 | 40,018 | |||
Intangible assets, net | 60,408 | 8,701 | 198,779 | |||
Deposits | 4,397 | 632 | 828 | |||
Long-term investments | 53,995 | 7,777 | 30,315 | |||
Other non-current assets | 2,671 | 385 | 1,621 | |||
Goodwill | 160,438 | 23,108 | 64,899 | |||
Total non-current assets | 328,895 | 47,371 | 336,460 | |||
TOTAL ASSETS | 700,220 | 100,853 | 705,646 | |||
Current liabilities: | ||||||
Account payable | 106 | |||||
Amounts due to intergroup companies | 69,423 | 10,000 | 132,938 | |||
Accrued payroll and welfare payable | 15,846 | 2,282 | 14,896 | |||
Accrued expenses and other current liabilities | 67,166 | 9,674 | 127,897 | |||
Income tax payable | 8,897 | 1,281 | 1,061 | |||
Total current liabilities | 161,332 | 23,237 | 276,898 | |||
Non-current liabilities: | ||||||
Deferred tax liability, non-current | 14,902 | 2,145 | 13,411 | |||
Long-term payables | 42,705 | 6,152 | 45,380 | |||
Total non-current liabilities | 57,607 | 8,297 | 58,791 | |||
TOTAL LIABILITIES | ¥ 218,939 | $ 31,534 | ¥ 335,689 |
ORGANIZATION (Results of Operat
ORGANIZATION (Results of Operations of VIEs) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Net revenues | ¥ 10,928 | $ 1,574 | ¥ 99,552 | ¥ 579,717 |
Net income (loss) | (209,252) | (30,138) | (324,209) | 157,049 |
Net cash generated from (used in) operating activities | (114,341) | (16,469) | 42,375 | 250,553 |
Net cash (used in) generated from investing activities | 503,833 | 72,567 | (922,063) | (395,744) |
Net cash used in financing activities | (117,094) | (16,865) | 748,461 | 84,922 |
VIEs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Net revenues | 10,928 | 1,574 | 87,065 | 447,898 |
Net income (loss) | (8,851) | (1,275) | (130,330) | 185,205 |
Net cash generated from (used in) operating activities | (50,876) | (7,328) | (83,113) | 422,702 |
Net cash (used in) generated from investing activities | 166,222 | 23,941 | (105,922) | (107,041) |
Net cash used in financing activities | ¥ (12,802) |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | |
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 | |||
Investment Income Interest | ¥ 23,859 | $ 3,436,000 | ¥ 20,589 | ¥ 17,009 | |
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 | ¥ 347 | $ 50,000 | 26,192 | 34,489 | |
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 | |||||
Income Tax Examination, Likelihood of Unfavorable Settlement | tax position if a tax return position or future tax position is more likely than not to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement. | tax position if a tax return position or future tax position is more likely than not to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit, determined on a cumulative probability basis, that has a greater than fifty percent likelihood of being realized upon settlement. | |||
Deferred stock issuance costs | 3,241 | ||||
Cost of Services [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Business tax and surcharges | ¥ 31 | $ 4,500 | ¥ 629 | ¥ 8,198 | |
China, Yuan Renminbi [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Currency exchange rate | 6.9430 | 6.9430 | |||
United States of America, Dollars [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Currency exchange rate | 1 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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 ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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 |
Intangible assets arising from business combination [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
License agreement, Estimated Useful Life | Agreement term |
Online payment and other licenses [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 15 years |
Mobile applications [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
CONCENTRATION OF RISKS (Narrati
CONCENTRATION OF RISKS (Narrative) (Details) - item | Apr. 03, 2015 | Oct. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
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% | |||
Service Fees [Member] | Concentration of serviced lottery products [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of service fees | 97.40% | 93.20% |
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, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | ¥ 10,928 | $ 1,574 | ¥ 99,552 | ¥ 579,717 |
Service Fees [Member] | Concentration of suppliers [Member] | Lottery administration center A [Member] | ||||
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | 48,277 | 260,096 | ||
Service Fees [Member] | Concentration of suppliers [Member] | Lottery administration center B [Member] | ||||
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | 36,552 | 198,549 | ||
Service Fees [Member] | Concentration of suppliers [Member] | Lottery administration center C [Member] | ||||
Concentration Risk [Line Items] | ||||
Net revenue recognized from service fees | ¥ 11,245 | ¥ 121,628 |
BUSINESS COMBINATION (Narrative
BUSINESS COMBINATION (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 20, 2015CNY (¥) | Nov. 25, 2016CNY (¥) | Nov. 25, 2016USD ($) | Jul. 25, 2016CNY (¥) | Jul. 25, 2016USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Business combination [Line Items] | ||||||||||
Minimum operating income required for payment of contingent consideration | ¥ 10,000 | |||||||||
Long-term sustainable growth rate (as a percent) | 0.00% | 0.00% | ||||||||
Sumpay.cn [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Percentage of voting interests acquired | 63.00% | |||||||||
Acquisition-related costs | $ | $ 48 | |||||||||
Ownership percentage | 37.00% | |||||||||
Discount rate (as a percent) | 18.61% | 18.61% | ||||||||
Long-term sustainable growth rate (as a percent) | 3.00% | 3.00% | ||||||||
Fair value of the contingent consideration | ¥ 6,300 | ¥ 6,300 | ||||||||
Contributed revenues to the Group | 708 | $ 109 | ||||||||
Contributed losses to the Group | 525 | $ 81 | ||||||||
Payments to Acquire Businesses, Gross | 226,800 | |||||||||
Business Combination, Consideration Transferred | 233,100 | |||||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | ¥ 98,785 | |||||||||
Qufan [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Percentage of voting interests acquired | 51.00% | |||||||||
Ownership percentage | 49.00% | |||||||||
Discount rate (as a percent) | 29.00% | 29.00% | ||||||||
Long-term sustainable growth rate (as a percent) | 3.00% | 3.00% | ||||||||
Fair value of the contingent consideration | ¥ 52,240 | |||||||||
Contributed revenues to the Group | 5,669 | $ 817 | ||||||||
Contributed losses to the Group | 1,745 | 251 | ||||||||
Payments to Acquire Businesses, Gross | 52,760 | |||||||||
Business Combination, Consideration Transferred | ¥ 105,000 | 105,000 | ||||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | ¥ 98,784 | 98,784 | ||||||||
Fair Value Inputs, Long-term Revenue Inflation Rate | 3.00% | 3.00% | ||||||||
Qufan [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Fair value of the contingent consideration | 52,250 | |||||||||
Business Combination, Contingent Consideration, Liability | 52,240 | |||||||||
Qufan [Member] | Scenario, Forecast [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Minimum operating income required for payment of contingent consideration | ¥ 31,000 | |||||||||
Qufan [Member] | General And Administrative Expense [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Acquisition-related costs | 2,661 | |||||||||
Shenzhen Caiyu [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Percentage of voting interests acquired | 100.00% | 100.00% | ||||||||
Contributed revenues to the Group | 1,792 | 258 | ||||||||
Contributed losses to the Group | ¥ 424 | $ 61 | ||||||||
Payments to Acquire Businesses, Gross | ¥ 1,000 | $ 140 | ||||||||
Qufan Cayman [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Fair value of the contingent consideration | ¥ 57,840 | |||||||||
Shenzhen Qufan Internet Technology Co., Ltd [Member] | ||||||||||
Business combination [Line Items] | ||||||||||
Payments to Acquire Businesses, Gross | ¥ 110,500 | $ 15,900 |
BUSINESS COMBINATION (Schedule
BUSINESS COMBINATION (Schedule of Fair Value of Consideration Transferred at Acquisition Date) (Details) - CNY (¥) ¥ in Thousands | Dec. 20, 2015 | Nov. 25, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Sumpay.cn [Member] | ||||
Fair value of consideration transferred | ||||
Cash consideration | ¥ 226,800 | |||
Contingent consideration | ¥ 6,300 | 6,300 | ||
Total Consideration | ¥ 233,100 | |||
Qufan [Member] | ||||
Fair value of consideration transferred | ||||
Cash consideration | ¥ 52,760 | |||
Contingent consideration | 52,240 | |||
Total Consideration | ¥ 105,000 | ¥ 105,000 |
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, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | Nov. 25, 2016CNY (¥) | |
Business combination [Line Items] | ||||
Goodwill | ¥ 160,438 | ¥ 64,899 | $ 23,108 | |
Online payment and other licenses [Member] | ||||
Business combination [Line Items] | ||||
Amortization Years | 15 years | |||
Sumpay.cn [Member] | ||||
Business combination [Line Items] | ||||
Noncontrolling interests | 98,785 | |||
Sumpay.cn [Member] | Online payment and other licenses [Member] | ||||
Business combination [Line Items] | ||||
Cash | 133,599 | |||
Mobile applications | 185,698 | |||
Other receivables | 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 | |||
Total Consideration | 233,100 | |||
Goodwill | ¥ 64,899 | |||
Amortization Years | 15 years | |||
Qufan [Member] | ||||
Business combination [Line Items] | ||||
Cash | ¥ 439 | |||
Mobile applications | 60,200 | |||
Other receivables | 10,363 | |||
Total identifiable assets acquired | 71,002 | |||
Deferred tax liabilities | (15,050) | |||
Other current liabilities | (10,281) | |||
Total liabilities assumed | (25,331) | |||
Net identifiable assets acquired | 45,671 | |||
Noncontrolling interests | 98,784 | ¥ 98,784 | ||
Total Consideration | 105,000 | |||
Goodwill | ¥ 158,113 | |||
Amortization Years | 5 years | |||
Shenzhen Caiyu [Member] | ||||
Business combination [Line Items] | ||||
Cash | ¥ 700 | |||
Other receivables | 635 | |||
Total identifiable assets acquired | 1,335 | |||
Other current liabilities | (2,660) | |||
Total liabilities assumed | (2,660) | |||
Net identifiable assets acquired | (1,325) | |||
Total Consideration | 1,000 | |||
Goodwill | ¥ 2,325 |
BUSINESS COMBINATION (Schedul58
BUSINESS COMBINATION (Schedule of acquired intangible assets have weighted average economic lives) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Computer software [Member] | Sumpay.cn [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives | 8 years |
Mobile applications [Member] | Qufan [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives | 5 years |
Online payment and other licenses [Member] | Sumpay.cn [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives | 15 years |
BUSINESS COMBINATION (Summary59
BUSINESS COMBINATION (Summary of Unaudited Pro forma Information) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | |
Qufan [Member] | |||||
Business combination [Line Items] | |||||
Pro forma total revenues | ¥ 27,379 | $ 3,943 | ¥ 99,921 | ||
Pro forma net income (loss) | (217,359) | (31,306) | (333,814) | ||
Pro forma net income (loss) attributable to 500.com Limited | ¥ (209,921) | $ (30,235) | (328,795) | ||
Sumpay.cn [Member] | |||||
Business combination [Line Items] | |||||
Pro forma total revenues | 130,430 | $ 20,135 | ¥ 604,900 | ||
Pro forma net income (loss) | (327,430) | (50,546) | 151,163 | ||
Pro forma net income (loss) attributable to 500.com Limited | ¥ (325,962) | $ (50,320) | ¥ 153,341 |
INVESTMENTS (Schedule of Short-
INVESTMENTS (Schedule of Short-term Investments) (Details) - Structured Deposits [Member] ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Investment Holdings [Line Items] | |||
Original cost | ¥ 100,000 | ¥ 45,540 | |
Gross unrealized gains | |||
Gross unrealized losses | |||
Provision for decline in value | |||
Fair value of investments | ¥ 100,000 | $ 14,403 | ¥ 45,540 |
INVESTMENTS (Schedule of Invest
INVESTMENTS (Schedule of Investments Categorized by Investment Class) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | |
Cost method and equity method investments | |||||
Impairment loss on equity investment | ¥ (3,440) | $ (495) | ¥ (5,000) | ||
Amount of cost method investment | $ 1,000 | ||||
Loss from equity method investment | (406) | (58) | (407) | ||
Change in fair value of available-for- sale investments | 754 | 109 | |||
Total carrying amount of long-term investments | 85,459 | 60,332 | 12,309 | ||
Available-for-sale Securities [Member] | |||||
Cost method and equity method investments | |||||
Carrying amount of available-for-sale investments | 4,266 | 615 | |||
Available-for-sale investments | 3,512 | 506 | |||
Change in fair value of available-for- sale investments | 754 | 109 | |||
Cost Method Investments [Member] | |||||
Cost method and equity method investments | |||||
Cost of cost method investments | 64,293 | 39,443 | 9,260 | ||
Impairment loss on equity investment | (8,583) | (1,236) | (5,000) | ||
Amount of cost method investment | 55,710 | 34,443 | 8,024 | ||
Equity Method Investments [Member] | |||||
Cost method and equity method investments | |||||
Cost of equity method investments | 26,296 | 26,296 | 3,787 | ||
Loss from equity method investment | (813) | $ (117) | (407) | ||
Carrying amount of available-for-sale investments | 25,483 | 25,889 | 3,670 | ||
Private company [Member] | Cost Method Investments [Member] | |||||
Cost method and equity method investments | |||||
Cost of cost method investments | 45,156 | 31,351 | 6,504 | ||
Private company [Member] | Equity Method Investments [Member] | |||||
Cost method and equity method investments | |||||
Cost of equity method investments | 5,500 | 5,500 | 792 | ||
Limited partnership [Member] | Cost Method Investments [Member] | |||||
Cost method and equity method investments | |||||
Cost of cost method investments | 19,137 | 8,092 | 2,756 | ||
Limited partnership [Member] | Equity Method Investments [Member] | |||||
Cost method and equity method investments | |||||
Cost of equity method investments | ¥ 20,796 | ¥ 20,796 | $ 2,995 |
INVESTMENTS (Narrative) (Detail
INVESTMENTS (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2016CNY (¥) | Nov. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Aug. 31, 2015CNY (¥) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Apr. 30, 2014CNY (¥) | Jan. 31, 2014CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Aug. 31, 2015USD ($) | Jun. 30, 2015CNY (¥) | Apr. 30, 2015CNY (¥) | Dec. 31, 2014USD ($) | |
Investments [Line Items] | |||||||||||||||||||||
Amount of cost method investment | $ | $ 1,000 | ||||||||||||||||||||
Cost-method Investments, Other than Temporary Impairment | ¥ 3,440 | $ 495 | ¥ 5,000 | ||||||||||||||||||
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 | 20,000 | |||||||||||||||||||
Huanlelingdang [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Cost-method Investments, Other than Temporary Impairment | $ | $ 5,000 | ||||||||||||||||||||
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] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Cost-method Investments, Other than Temporary Impairment | ¥ 3,469 | ||||||||||||||||||||
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 | |||||||||||||||||||
Heimatuoxin [Member] | Limited partnership [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Percentage of cost method investments | 3.49% | 3.49% | |||||||||||||||||||
Amount of original cost of cost method investments | ¥ 3,000 | ||||||||||||||||||||
Amount of cost method investment | ¥ 3,000 | ¥ 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 | ¥ 600 | |||||||||||||||||||
Beijing Weisaishidai Sports Technology Co., Ltd [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Percentage of cost method investments | 0.84% | ||||||||||||||||||||
Amount of original cost of cost method investments | ¥ 10,000 | ||||||||||||||||||||
Techelix Co., Ltd [Member] | Private company [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Percentage of cost method investments | 2.00% | ||||||||||||||||||||
Amount of original cost of cost method investments | $ | $ 600 | ||||||||||||||||||||
Jingyan [Member] | Limited partnership [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Percentage of cost method investments | 4.64% | ||||||||||||||||||||
Amount of original cost of cost method investments | ¥ 6,000 | ||||||||||||||||||||
Amount of cost method investment | ¥ 2,040 | 2,040 | |||||||||||||||||||
zPark [Member] | Limited partnership [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Percentage of cost method investments | 2.00% | ||||||||||||||||||||
Amount of original cost of cost method investments | $ | 1,000 | ||||||||||||||||||||
Amount of cost method investment | $ | $ 1,000 | ||||||||||||||||||||
Yintech Investment Holdings Limited [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Amount of original cost of equity method investments | $ | $ 506 | ||||||||||||||||||||
Hewei Technology Co., Ltd. [Member] | |||||||||||||||||||||
Investments [Line Items] | |||||||||||||||||||||
Cost-method Investments, Other than Temporary Impairment | ¥ 114 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Accounts receivable | ¥ 19,847 | $ 2,861 | ¥ 23,588 |
Less: Allowance for doubtful accounts | (19,847) | (2,861) | (19,950) |
Accounts receivable, net | ¥ 0 | $ 0 | ¥ 3,638 |
PREPAYMENTS, OTHER CURRENT AS64
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Summary of Prepayments and Other Current Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Receivables from third party payment service providers | ¥ 13,450 | $ 1,936 | ¥ 888 | |
Interest receivables | 4,882 | 703 | 5,189 | |
Deposit for share repurchase | [1] | 16,557 | 2,385 | |
Receivables of remaining consideration | [2] | 71,820 | 10,343 | |
Deferred sponsorship and advertising expenses | 1,963 | |||
Deposits receivable from merchants | [3] | 6,970 | ||
Others | 18,825 | 2,711 | 15,845 | |
Prepayments and other current assets, Total | ¥ 125,534 | $ 18,078 | ¥ 30,855 | |
[1] | Deposit for share repurchase represents cash paid in advance by the Group under the share repurchase program commenced in 2015. | |||
[2] | Receivables of remaining consideration represent the remaining cash consideration relating to the disposal of equity interest in Sumpay.cn as of December 31, 2016, which has been collected in March 2017. | |||
[3] | Deposits receivable from merchants represent cash paid in advance by Sumpay.cn to the local merchants for the prepaid card services. Sumpay.cn has been disposed in May 2016. |
PREPAYMENTS, OTHER CURRENT AS65
PREPAYMENTS, OTHER CURRENT ASSETS AND DEPOSITS (Summary of Deposits) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Deposits for office leases and others | ¥ 5,810 | $ 837 | ¥ 1,217 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 98,674 | $ 14,212 | ¥ 87,439 |
Less: Accumulated depreciation | (44,739) | (6,444) | (43,245) |
Property and equipment, net | 53,935 | 7,768 | 44,194 |
Electronics and office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 37,846 | 5,451 | 46,911 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 11,783 | 1,697 | 10,686 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 49,045 | $ 7,064 | ¥ 29,842 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | ¥ 12,865 | $ 1,853 | ¥ 10,209 | ¥ 8,653 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | ¥ 67,437 | $ 9,714 | ¥ 208,702 |
Accumulated amortization | (5,890) | (849) | (8,554) |
Intangible assets, net | 61,547 | 8,865 | 200,148 |
Computer software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 3,576 | 516 | 19,343 |
Accumulated amortization | (2,320) | (334) | (6,050) |
License agreement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 800 | 115 | 800 |
Accumulated amortization | (800) | (115) | (800) |
Online payment and other licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 185,698 | ||
Accumulated amortization | (1,188) | (171) | (344) |
Internet domain name [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 2,861 | 412 | 2,861 |
Accumulated amortization | (1,582) | (229) | (1,360) |
Mobile Applications [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | ¥ 60,200 | $ 8,671 |
INTANGIBLE ASSETS, NET (Sched69
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Finite Lived Intangible Assets [Line Items] | |||
2,017 | ¥ 12,769 | $ 1,839 | |
2,018 | 12,490 | 1,799 | |
2,019 | 12,398 | 1,786 | |
2,020 | 12,358 | 1,780 | |
2021 and thereafter | 11,532 | 1,661 | |
Intangible assets, net | ¥ 61,547 | $ 8,865 | ¥ 200,148 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expenses | ¥ 6,846 | $ 986 | ¥ 1,361 | ¥ 1,634 |
ACCRUED EXPENSES AND OTHER CU71
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Contingent consideration for business combination | [1] | ¥ 104,490 | $ 15,050 | ¥ 6,300 |
Qufan [Member] | ||||
Contingent consideration for business combination | ¥ 52,760 | |||
[1] | Unpaid consideration for business combination represents the unpaid cash consideration and contingent consideration relating to the acquisition of Qufan as of December 31, 2016. As of the date of the annual report, RMB52,760 has been paid to the shareholders of Qufan. |
ACCRUED EXPENSES AND OTHER CU72
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | |
Advance from end users | [1] | ¥ 34,388 | $ 4,953 | ¥ 35,352 |
Advance from prepaid cards | [2] | 62,138 | ||
Business tax and other taxes payable | 3,280 | 472 | 675 | |
Deferred government grant | 5,018 | 723 | 11,757 | |
Professional fees payable | 15,136 | 2,180 | 9,842 | |
Promotional events payables | 7,921 | 1,141 | 5,439 | |
Unpaid consideration for business combination | [3] | 104,490 | 15,050 | 6,300 |
Others | 13,922 | 2,005 | 9,109 | |
Accrued expenses and other current liabilities, Total | ¥ 184,155 | $ 26,524 | ¥ 140,612 | |
[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) payments received by the Group in advance from the end users prior to the purchase of sports information. | |||
[2] | Advance from prepaid cards represents the unused remaining value on the prepaid cards as at the balance sheet date. The balance as of December 31, 2016 was nil since Sumpay.cn has been disposed in May 2016. | |||
[3] | Unpaid consideration for business combination represents the unpaid cash consideration and contingent consideration relating to the acquisition of Qufan as of December 31, 2016. As of the date of the annual report, RMB52,760 has been paid to the shareholders of Qufan. |
ACCUMULATED DEFICIT (Narrative)
ACCUMULATED DEFICIT (Narrative) (Details) - 12 months ended Dec. 31, 2016 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Retained Earnings Adjustments [Line Items] | ||
PRC Subsidiary and VIEs restricted amount | ¥ 459,660 | $ 66,205 |
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, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
PRC statutory reserved funds | ¥ 30,224 | $ 4,353 | ¥ 29,486 |
Unreserved accumulated deficit | (568,552) | (81,888) | (364,849) |
Accumulated deficit | ¥ (538,328) | $ (77,535) | ¥ (335,363) |
INCOME TAXES (Narrative Summary
INCOME TAXES (Narrative Summary of Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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% | |
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% | ||
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% | ||
Transitional income tax rate period | 3 years | ||
Hong Kong [Member] | |||
Income Tax Contingency [Line Items] | |||
Statutory EIT rate on taxable income | 16.50% | ||
PRC [Member] | |||
Income Tax Contingency [Line Items] | |||
Statutory EIT rate on taxable income | 25.00% | ||
PRC [Member] | Youlanguang Technology [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Income Tax Contingency [Line Items] | |||
Statutory EIT rate on taxable income | 25.00% | 25.00% | 25.00% |
PRC [Member] | E-Sun Network [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Income Tax Contingency [Line Items] | |||
Statutory EIT rate on taxable income | 25.00% | 25.00% | 25.00% |
PRC [Member] | E-Sun Sky Computer [Member] | |||
Income Tax Contingency [Line Items] | |||
Statutory EIT rate on taxable income | 25.00% | 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% |
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% | 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% | 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% | 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 | 15.00% | 15.00% | 10.00% |
PRC [Member] | High-tech Enterprise [Member] | E-Sun Sky Computer [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Income Tax Contingency [Line Items] | |||
Statutory EIT rate on taxable income | 15.00% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income (Loss) before Income Taxes) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | ¥ (206,195) | $ (29,698) | ¥ (282,240) | ¥ 165,036 |
Cayman Islands [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | (179,348) | (25,831) | (163,416) | (94,331) |
British Virgin Islands [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | (31) | (4) | (4) | |
USA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | (3,809) | (549) | (2,320) | |
Hong Kong [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | (10,524) | (1,516) | (1,470) | (838) |
PRC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes | ¥ (12,483) | $ (1,798) | ¥ (115,034) | ¥ 260,209 |
INCOME TAXES (Schedule of Curre
INCOME TAXES (Schedule of Current and Deferred Components) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Current tax expense | ¥ (3,553) | $ (511) | ¥ (1,890) | ¥ (31,918) |
Deferred tax benefit (expense) | 496 | 71 | (40,079) | 23,931 |
Income tax expense | ¥ (3,057) | $ (440) | ¥ (41,969) | ¥ (7,987) |
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, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Income (loss) before income taxes | ¥ (206,195) | $ (29,698) | ¥ (282,240) | ¥ 165,036 |
Income tax computed at applicable tax rates (25%) | (51,549) | (7,425) | (70,560) | 41,259 |
Effect of different tax rates in different jurisdictions | 4,743 | 682 | 1,206 | 1,313 |
Non-deductible expenses | 54,588 | 7,862 | 47,324 | 28,103 |
Effect of tax holiday | (16,170) | |||
Effect of tax rate changes | (1,841) | (265) | (24,125) | (38,747) |
Change in valuation allowance | (5,144) | (740) | 88,661 | 18 |
Changes in interest and penalties on unrecognized tax benefits | 3,105 | 447 | 3,920 | (349) |
Effect of EIT reversal for previous years | 2,760 | 398 | (2,099) | (5,799) |
Research and development super-deduction | (2,947) | (424) | (2,363) | (1,959) |
Others | (658) | (95) | 5 | 318 |
Income tax expense (benefit) | ¥ 3,057 | $ 440 | ¥ 41,969 | ¥ 7,987 |
INCOME TAXES (Reconciliation 79
INCOME TAXES (Reconciliation of Tax Computed Applying Statutory Income Tax Rate) (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Balance at beginning of year | ¥ 42,983 | $ 6,191 | ¥ 38,901 | ¥ 27,405 |
Increase relating to current year tax positions | 3,630 | 523 | 7,496 | 18,014 |
Decrease relating to prior year tax positions | (3,204) | (461) | (1,119) | (5,202) |
Decrease relating to expiration of applicable statute of limitations | (4,952) | (713) | (2,295) | (1,316) |
Balance at end of year | ¥ 38,457 | $ 5,540 | ¥ 42,983 | ¥ 38,901 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 06, 2012 | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2012CNY (¥) |
Income Tax Contingency [Line Items] | ||||||||
Unrecognized tax benefits if recognized that would affect effective tax rate | ¥ 15,241 | ¥ 13,985 | ¥ 13,067 | $ 2,195 | ||||
Recognizes interest and penalties accrued | 4,932 | $ 710 | 4,534 | 2,119 | ||||
Unrecognized tax benefits reversed | 1,827 | 614 | 2,469 | 263 | ||||
Accrued interest and penalties | ¥ 9,989 | 6,884 | ¥ 2,963 | 1,439 | ||||
Statute of limitation period | In general, the PRC tax authorities have up to three to five years to conduct examinations of the Groups tax filings. | In general, the PRC tax authorities have up to three to five years to conduct examinations of the Groups tax filings. | ||||||
Net operating losses | ¥ 101,568 | 14,629 | ||||||
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 | 448,176 | 427,340 | 69,186 | |||||
Unrecognized deferred tax liabilities | ¥ 44,818 | ¥ 42,734 | $ 6,919 | |||||
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 | 2,013 | 2,013 | ||||||
Net operating losses expiration year | 2,017 | 2,017 | ||||||
Latest Tax Year [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Year open for examination | 2,016 | 2,016 | ||||||
Net operating losses expiration year | 2,021 | 2,021 |
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, 2016CNY (¥)¥ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015CNY (¥)¥ / shares | Dec. 31, 2014CNY (¥)¥ / shares | |
Income Tax Holiday [Line Items] | ||||
The aggregate amount | ¥ 16,170 | |||
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, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) |
Deferred tax assets, current portion | |||
Accrued payroll and welfare payable | ¥ 2,382 | ||
Deferred government grants | 1,764 | ||
Bad debt provision | 2,977 | ||
Less: valuation allowance | (7,123) | ||
Total deferred tax assets, current portion | |||
Deferred tax assets, non-current portion | |||
Advertising expenditure deductible in future years | 58,654 | 8,448 | 65,305 |
Deferred government grants | 2,417 | 348 | 1,217 |
Loss from equity method investment | 203 | 29 | 102 |
Bad debt provision | 4,962 | 715 | |
Accured rental expense | 817 | 118 | |
Impairment loss | 1,250 | 180 | |
Net operating losses (“NOLs”) | 16,411 | 2,364 | 16,111 |
Less: valuation allowance | (84,714) | (12,202) | (82,735) |
Total deferred tax assets, non-current portion | |||
Deferred tax liabilities, non-current portion | |||
Online payment and other licenses arisen from business combination | (14,902) | (2,146) | (13,411) |
Total deferred tax liabilities, non-current portion | ¥ (14,902) | $ (2,146) | ¥ (13,411) |
EMPLOYEE DEFINED CONTRIBUTION84
EMPLOYEE DEFINED CONTRIBUTION PLAN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amount of employee benefits expensed | ¥ 15,591 | $ 2,246 | ¥ 12,587 | ¥ 10,042 |
SHARE-BASED PAYMENT (Narrative)
SHARE-BASED PAYMENT (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jan. 06, 2016$ / sharesshares | Jan. 05, 2016$ / sharesshares | 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. 16, 2016$ / sharesshares | Jan. 16, 2016$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($)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 | ||||||||||||||||
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 | ¥ 93,352 | $ 13,445 | |||||||||||||||
Equity awards granted to employees recognition period | 1 year 6 months | 1 year 6 months | |||||||||||||||
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 | 19,600,000 | 19,600,000 | ||||||||||||||
Exercise price of share | $ / shares | $ 3.232 | $ 0.40 | $ 1.77 | ||||||||||||||
Number of shares options vested | 55,156,889 | 55,156,889 | |||||||||||||||
Intrinsic value of options exercised | ¥ 11,051 | $ 1,592 | ¥ 49,625 | ||||||||||||||
Number of vested and non vested options | 55,382,320 | 38,058,640 | 38,058,640 | 55,382,320 | |||||||||||||
Fair value of options | ¥ 127,333 | $ 18,340 | ¥ 63,200 | ¥ 21,946 | |||||||||||||
Weighted-average grant-date fair value per share granted | $ / shares | $ 0.89 | $ 1.07 | |||||||||||||||
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 | 600,000 | 200,000 | 2,000,000 | 5,003,980 | 600,000 | ||||||||||||
Exercise price of share | $ / shares | $ 1.851 | $ 2.55 | $ 0.40 | $ 1.35 | |||||||||||||
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 | ||||||||||||||||
Employees [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Shares granted during period | 2,500,000 | 32,561,800 | 2,660,000 | 15,900,000 | |||||||||||||
Exercise price of share | $ / shares | $ 2 | $ 0.40 | $ 1.743 | ||||||||||||||
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 | ||||||||||||||||
Employees [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Number of shares options vested | 750,000 | 2,650,000 | |||||||||||||||
Employees [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Number of shares options vested | 750,000 | 5,300,000 | |||||||||||||||
Employees [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Number of shares options vested | 1,000,000 | 7,950,000 | |||||||||||||||
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Number of option | |||||
Exercised | (2,276,320) | (5,274,480) | (22,742,660) | ||
Employees and Directors [Member] | |||||
Number of option | |||||
Outstanding, January 1, 2016 | 38,058,640 | ||||
Granted | 13,864,000 | 19,600,000 | |||
Forfeited | |||||
Exercised | (2,276,320) | ||||
Outstanding, December 31, 2016 | 55,382,320 | 38,058,640 | |||
Vested and expected to vest at December 31, 2016 | 55,156,889 | ||||
Exercisable at December 31, 2016 | 21,616,090 | ||||
Weighted average exercise price | |||||
Outstanding, January 1, 2016 | $ 0.90 | ||||
Granted | $ 3.232 | $ 0.40 | 1.77 | ||
Forfeited | |||||
Exercised | 0.89 | ||||
Outstanding, December 31,2016 | 1.70 | $ 0.90 | |||
Vested and expected to vest at December 31, 2016 | 1.70 | ||||
Exercisable at December 31, 2016 | 0.92 | ||||
Weighted average grant date fair value per share | |||||
Outstanding, January 1, 2016 | 1.24 | ||||
Granted | 0.89 | 1.07 | |||
Forfeited | |||||
Exercised | 1.17 | ||||
Outstanding, December 31, 2016 | 1.12 | $ 1.24 | |||
Vested and expected to vest at December 31, 2016 | 1.12 | ||||
Exercisable at December 31, 2016 | $ 1.16 | ||||
Weighted average remaining contractual year | |||||
Outstanding | 2 years 7 months 24 days | 3 years 3 months 29 days | |||
Granted | 2 years 7 months 24 days | ||||
Vested and expected to vest at December 31, 2016 | 1 year 6 months 18 days | ||||
Exercisable at December 31, 2016 | 2 years 5 months 16 days | ||||
Aggregated intrinsic value | |||||
Outstanding, December 31, 2016 | $ 22,634 | ||||
Vested and expected to vest at December 31, 2016 | 22,333 | ||||
Exercisable at December 31, 2016 | $ 14,153 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 70.80% | 51.96% | 50.39% |
Expected volatility, maximum | 77.52% | 56.23% | 54.38% |
Risk-free interest rate, minimum | 1.13% | 1.06% | 0.65% |
Risk-free interest rate, maximum | 1.62% | 1.64% | 1.64% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 0.00% | 0.00% | |
Suboptimal early exercise factor | $ 2.8 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 0.00% | ||
Suboptimal early exercise factor | $ 2.2 | $ 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 | $ 2.8 |
SHARE-BASED PAYMENT (Schedule88
SHARE-BASED PAYMENT (Schedule of Share-Based Compensation Expenses Relating to Options Granted) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | ¥ 163,341 | $ 23,526 | ¥ 158,629 | $ 24,488 | ¥ 89,922 | $ 14,493 |
Cost of Services [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 2,993 | 431 | 3,052 | 471 | 1,478 | 238 |
Sales and marketing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 13,966 | 2,012 | 13,771 | 2,126 | 6,619 | 1,067 |
General and administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 121,358 | 17,479 | 119,002 | 18,371 | 70,770 | 11,406 |
Service development expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 25,024 | $ 3,604 | 22,804 | $ 3,520 | 11,055 | $ 1,782 |
Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 156,227 | 149,567 | 82,136 | |||
Employees [Member] | Cost of Services [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 2,993 | 3,052 | 1,478 | |||
Employees [Member] | Sales and marketing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 13,966 | 13,771 | 6,619 | |||
Employees [Member] | General and administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 114,244 | 109,940 | 62,984 | |||
Employees [Member] | Service development expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 25,024 | 22,804 | 11,055 | |||
Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expenses | 7,114 | 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 | 7,114 | 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, 2016CNY (¥) | Dec. 31, 2016USD ($) | 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 CONTINGENCIES90
COMMITMENTS AND CONTINGENCIES (Schedule of Operating Lease Commitments) (Details) - Dec. 31, 2016 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
2,017 | ¥ 21,935 | $ 3,160 |
2,018 | 20,535 | 2,957 |
2,019 | 12,827 | 1,847 |
Operating lease commitments due | ¥ 55,297 | $ 7,964 |
COMMITMENTS AND CONTINGENCIES91
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) ¥ in Thousands, $ in Thousands | Sep. 12, 2016USD ($) | Feb. 25, 2015USD ($) | Nov. 22, 2013USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Dec. 31, 2016USD ($) |
Total rental expenses for operating leases | ¥ 11,421 | $ 1,645 | ¥ 4,013 | ¥ 5,279 | ||||
Accrual for unrecognized tax benefits | ¥ 38,638 | ¥ 41,981 | $ 5,565 | |||||
Payments for Legal Settlements | $ 1,500 | $ 2,500 | ||||||
Proceeds from Insurance Settlement, Investing Activities | $ 1,000 |
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, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | Dec. 31, 2014CNY (¥)¥ / sharesshares | |
Basic Denominator: | ||||
Denominator used for earnings (losses) per share | 414,872,756 | 414,872,756 | 385,590,213 | 339,782,819 |
Earnings (losses) per share-basic | (per share) | ¥ (0.49) | $ (0.07) | ¥ (0.84) | ¥ 0.46 |
Diluted Numerator: | ||||
Net income (loss) attributable to ordinary shareholders | ¥ (202,965) | $ (29,232) | ¥ (323,897) | ¥ 157,049 |
Diluted Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 414,872,756 | 414,872,756 | 385,590,213 | 339,782,819 |
Denominator used for earnings (losses) per share | 414,872,756 | 414,872,756 | 385,590,213 | 357,848,704 |
Earnings (losses) per share-diluted | (per share) | ¥ (0.49) | $ (0.07) | ¥ (0.84) | ¥ 0.44 |
Earnings per ADS: | ||||
Earnings (losses) per ADS - basic | (per share) | (4.89) | (0.70) | (8.40) | 4.62 |
Earnings (losses) per ADS - diluted | (per share) | ¥ (4.89) | $ (0.70) | ¥ (8.40) | ¥ 4.39 |
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 | ¥ (36,908) | $ (5,315) | ¥ (76,233) | ¥ 82,571 |
Basic Denominator: | ||||
Denominator used for earnings (losses) per share | 75,442,810 | 75,442,810 | 90,753,548 | 178,645,232 |
Earnings (losses) per share-basic | (per share) | ¥ (0.49) | $ (0.07) | ¥ (0.84) | ¥ 0.46 |
Diluted Numerator: | ||||
Allocation of net income (loss) attributable to 500.com Limited’s ordinary shareholders used in calculating income per ordinary share- diluted | ¥ (36,908) | $ (5,315) | ¥ (76,233) | ¥ 78,604 |
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 ordinary shareholders | ¥ (36,908) | $ (5,315) | ¥ (76,233) | ¥ 78,604 |
Diluted Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 75,442,810 | 75,442,810 | 90,753,548 | 178,645,232 |
Conversion of Class B to Class A ordinary shares | ||||
Share options | ||||
Denominator used for earnings (losses) per share | 75,442,810 | 75,442,810 | 90,753,548 | 178,645,232 |
Earnings (losses) per share-diluted | (per share) | ¥ (0.49) | $ (0.07) | ¥ (0.84) | ¥ 0.44 |
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 | ¥ (166,057) | $ (23,917) | ¥ (247,664) | ¥ 74,478 |
Basic Denominator: | ||||
Denominator used for earnings (losses) per share | 339,429,946 | 339,429,946 | 294,836,665 | 161,137,587 |
Earnings (losses) per share-basic | (per share) | ¥ (0.49) | $ (0.07) | ¥ (0.84) | ¥ 0.46 |
Diluted Numerator: | ||||
Allocation of net income (loss) attributable to 500.com Limited’s ordinary shareholders used in calculating income per ordinary share- diluted | ¥ (166,057) | $ (23,917) | ¥ (247,664) | ¥ 78,445 |
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 | (36,908) | (5,315) | (76,233) | 78,604 |
Net income (loss) attributable to ordinary shareholders | ¥ (202,965) | $ (29,232) | ¥ (323,897) | ¥ 157,049 |
Diluted Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share | 339,429,946 | 339,429,946 | 294,836,665 | 161,137,587 |
Conversion of Class B to Class A ordinary shares | 75,442,810 | 75,442,810 | 90,753,548 | 178,645,232 |
Share options | 18,065,885 | |||
Denominator used for earnings (losses) per share | 414,872,756 | 414,872,756 | 385,590,213 | 357,848,704 |
Earnings (losses) per share-diluted | (per share) | ¥ (0.49) | $ (0.07) | ¥ (0.84) | ¥ 0.44 |
Earnings per ADS: | ||||
Denominator used for earnings (losses) per ADS - basic | 33,942,995 | 33,942,995 | 29,483,667 | 16,113,759 |
Denominator used for earnings (losses) per ADS - diluted | 41,487,276 | 41,487,276 | 38,599,021 | 35,784,870 |
Earnings (losses) per ADS - basic | (per share) | ¥ (4.89) | $ (0.70) | ¥ (8.40) | ¥ 4.62 |
Earnings (losses) per ADS - diluted | (per share) | ¥ (4.89) | $ (0.70) | ¥ (8.40) | ¥ 4.39 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2013shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014CNY (¥)shares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | |
Class of Stock [Line Items] | ||||||||
Issuance of ordinary shares from exercise of share options, shares | 2,276,320 | 2,276,320 | 5,274,480 | 5,274,480 | 22,742,660 | 22,742,660 | ||
Aggregate consideration from shares issued from exercise of stock options | ¥ 12,558 | $ 1,809 | ¥ 18,126 | ¥ 48,788 | ||||
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 | $ 0.2 | |||||
Maximum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Options exercise price per share | $ / shares | 1 | 1 | 0.4 | |||||
Class B Ordinary shares [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||||
Authorized share capital, ordinary shares | 300,000,000 | 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 and is convertible into one Class A ordinary share at any time by the holder thereof. | Each share of Class B ordinary shares is entitled to ten votes per share and is convertible into one Class A ordinary share at any time by the holder thereof. | ||||||
Ordinary shares issued | 74,400,299 | 84,999,159 | 96,634,529 | 262,197,451 | ||||
Ordinary shares outstanding | 74,400,299 | 84,999,159 | 96,634,529 | 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 | ||||||||
Conversion of ordinary shares, shares converted | 231,428,220 | |||||||
Conversion of convertible note, ordinary shares issued | 19,230,769 | |||||||
Private placement, ordinary shares issued | 11,538,462 | |||||||
Ordinary shares issued, aggregate consideration | $ | $ 15,000 | |||||||
Class A Ordinary shares [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of common shares issued during period | 2,276,320 | 2,276,320 | 5,274,480 | 5,274,480 | ||||
Ordinary shares, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||||
Aggregate consideration from shares issued from exercise of stock options | $ | $ 2,032 | $ 2,960 | $ 8,107 | |||||
Number of additional shares issued | 63,500,500 | 63,500,500 | ||||||
Repurchased of ordinary shares, consideration | $ | $ 17,240 | $ 1,434 | ||||||
Repurchased of ordinary shares | 11,415,320 | 11,415,320 | 1,220,000 | 1,220,000 | ||||
Authorized share capital, ordinary shares | 700,000,000 | 700,000,000 | 700,000,000 | |||||
Voting rights per share | one vote per share | one vote per share | ||||||
Ordinary shares issued, aggregate consideration | $ | $ 123,391 | |||||||
Ordinary shares issued | 335,494,792 | 334,034,932 | 254,844,582 | 66,539,000 | ||||
Ordinary shares outstanding | 335,494,792 | 334,034,932 | 254,844,582 | 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 | 2,276,320 | 2,276,320 | 5,274,480 | 5,274,480 | 22,742,660 | 22,742,660 | ||
Conversion of ordinary shares, shares converted | 66,539,000 | |||||||
Private placement, ordinary shares issued | 63,500,500 | 63,500,500 |
FAIR VALUE MEASUREMENT (Assets
FAIR VALUE MEASUREMENT (Assets and Liabilities Measured or Disclosed At Fair Value) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Time deposits | ¥ 804,692 | ¥ 1,220,797 | $ 115,900 | ||
Total fair value | 1,339,857 | 1,503,944 | 192,980 | ||
Short-term investments | 104,266 | 45,540 | 15,018 | ||
Fair Value, Measured on NonRecurring Basis, Gain Loss Included in Earnings | (3,583) | $ (516) | |||
Liabilities measured at fair value | 52,240 | 7,524 | |||
Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liabilities measured at fair value | 52,240 | 7,524 | |||
Recurring [Member] | Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 4,266 | 615 | |||
Fair Value, Measurements, Nonrecurring [Member] | Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Gain (Loss) on Investments | |||||
Fair Value, Measurements, Nonrecurring [Member] | Equity Method Investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | |||||
Gain (Loss) on Investments | (3,583) | $ (516) | |||
Structured Deposit [Member] | Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 100,000 | 45,540 | 14,403 | ||
Fixed-rate investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash equivalents | 312,165 | 240,646 | 44,961 | ||
Adjustable-rate investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash equivalents | 223,000 | 42,501 | $ 32,119 | ||
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 | |||||
Short-term investments | 4,266 | ||||
Liabilities measured at fair value | |||||
Quoted prices in active markets for identical assets (Level 1) [Member] | Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liabilities measured at fair value | |||||
Quoted prices in active markets for identical assets (Level 1) [Member] | Recurring [Member] | Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | 4,266 | ||||
Quoted prices in active markets for identical assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Available-for-sale Securities [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] | Fair Value, Measurements, Nonrecurring [Member] | Equity Method Investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Gain (Loss) on Investments | |||||
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 | 804,692 | ||||
Total fair value | 1,339,857 | ||||
Short-term investments | 100,000 | 45,540 | |||
Liabilities measured at fair value | |||||
Significant other observable inputs (Level 2) [Member] | Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liabilities measured at fair value | |||||
Significant other observable inputs (Level 2) [Member] | Recurring [Member] | Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | |||||
Significant other observable inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | |||||
Significant other observable inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Equity Method Investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Gain (Loss) on Investments | |||||
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 | 100,000 | ||||
Significant other observable inputs (Level 2) [Member] | Fixed-rate investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash equivalents | 312,165 | ||||
Significant other observable inputs (Level 2) [Member] | Adjustable-rate investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash equivalents | 223,000 | ||||
Significant unobservable inputs (Level 3) [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Time deposits | |||||
Total fair value | |||||
Short-term investments | |||||
Liabilities measured at fair value | 52,240 | ||||
Significant unobservable inputs (Level 3) [Member] | Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liabilities measured at fair value | 52,240 | ||||
Significant unobservable inputs (Level 3) [Member] | Recurring [Member] | Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | |||||
Significant unobservable inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term investments | |||||
Significant unobservable inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Equity Method Investments [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Gain (Loss) on Investments | |||||
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 |
FAIR VALUE MEASUREMENT (Signifi
FAIR VALUE MEASUREMENT (Significant Unobservable Inputs Used In Fair Value Measurement) (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended |
Dec. 31, 2016CNY (¥)¥ / shares | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Spot value of net income | ¥ | ¥ 31,698 |
Volatility of net income | 10.00% |
Expected annual growth rate of net income | 0.00% |
Discount Factor | ¥ / shares | ¥ 0.95 |
FAIR VALUE MEASUREMENT (Net Der
FAIR VALUE MEASUREMENT (Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation) (Details) - 12 months ended Dec. 31, 2016 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | ¥ 0 | |
Recognized during the year | 52,240 | |
Ending Balance | ¥ 52,240 | $ 7,524 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segment | 1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Apr. 12, 2017CNY (¥) | Mar. 28, 2011 | Feb. 21, 2017 | Feb. 29, 2016USD ($)shares | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Subsequent Event [Line Items] | ||||||||
Income Tax Holiday Aggregate Dollar Amount | ¥ 16,170,000 | |||||||
Sharebased Compensation Arrangement By Sharebased Payment Award Expiration Period | 10 years | |||||||
Shenzhen Qufan [Member] | Scenario, Forecast [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Income Tax Holiday Aggregate Dollar Amount | ¥ | ¥ 4,326 | |||||||
American Depository Shares [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 30 | |||||||
Stock Repurchased During Period, Shares | shares | 160,200 | |||||||
Stock Repurchased During Period, Value | $ 2.1 | |||||||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Sharebased Compensation Arrangement By Sharebased Payment Award Expiration Period | 3 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 3.00% |
CONDENSED FINANCIAL INFORMATI99
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Narrative) (Details) - Dec. 31, 2016 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
PRC Subsidiary and VIEs restricted amount | ¥ 459,660 | $ 66,205 |
CONDENSED FINANCIAL INFORMAT100
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Balance Sheets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2013CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 673,102 | $ 96,947 | ¥ 400,657 | $ 57,707 | ¥ 485,556 | ¥ 544,318 |
Time deposits | 804,692 | 115,900 | 1,220,797 | |||
Other current assets | 18,825 | 2,711 | 15,845 | |||
Total current assets | 1,707,032 | 245,861 | 1,712,086 | |||
Non-current assets: | ||||||
Property and equipment, net | 53,935 | 7,768 | 44,194 | |||
Total non-current assets | 369,860 | 53,273 | 372,411 | |||
TOTAL ASSETS | 2,076,892 | 299,134 | 2,084,497 | |||
Current liabilities: | ||||||
Accrued payroll and welfare payable | 16,270 | 2,343 | 15,890 | |||
Accrued expenses and other liabilities | 184,155 | 26,524 | 140,612 | |||
Total current liabilities | 209,475 | 30,170 | 157,822 | |||
TOTAL LIABILITIES | 268,849 | 38,721 | 218,161 | |||
Shareholders’ equity: | ||||||
Additional paid-in capital | 2,198,385 | 316,633 | 2,022,369 | |||
Treasury shares | (123,258) | (17,753) | (8,773) | |||
Accumulated other comprehensive income | 172,589 | 24,858 | 89,488 | |||
Accumulated deficit | (538,328) | (77,535) | (335,363) | |||
Total shareholder's equity | 1,709,531 | 246,224 | 1,767,863 | |||
TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY | 2,076,892 | 299,134 | 2,084,497 | |||
Class A Ordinary shares [Member] | ||||||
Shareholders’ equity: | ||||||
Ordinary shares, value | 115 | 17 | 110 | |||
Class B Ordinary shares [Member] | ||||||
Shareholders’ equity: | ||||||
Ordinary shares, value | 28 | 4 | 32 | |||
Parent Company [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 341,671 | 49,211 | 20,594 | $ 2,966 | ¥ 93,748 | ¥ 369,936 |
Time deposits | 700,637 | 100,913 | 1,025,989 | |||
Other current assets | 23,728 | 3,418 | 5,246 | |||
Amounts due from intergroup companies | 194,117 | 27,959 | 252,816 | |||
Total current assets | 1,260,153 | 181,501 | 1,304,645 | |||
Non-current assets: | ||||||
Investment in subsidiaries and VIEs | 566,267 | 81,559 | 485,874 | |||
Property and equipment, net | 343 | 49 | 402 | |||
Total non-current assets | 566,610 | 81,608 | 486,276 | |||
TOTAL ASSETS | 1,826,763 | 263,109 | 1,790,921 | |||
Current liabilities: | ||||||
Accrued payroll and welfare payable | 43 | 7 | 145 | |||
Accrued expenses and other liabilities | 112,548 | 16,210 | 8,736 | |||
Amounts due to intergroup companies | 4,641 | 668 | 14,177 | |||
Total current liabilities | 117,232 | 16,885 | 23,058 | |||
TOTAL LIABILITIES | 117,232 | 16,885 | 23,058 | |||
Shareholders’ equity: | ||||||
Additional paid-in capital | 2,198,385 | 316,633 | 2,022,369 | |||
Treasury shares | (123,258) | (17,753) | (8,773) | |||
Accumulated other comprehensive income | 172,589 | 24,858 | 89,488 | |||
Accumulated deficit | (538,328) | (77,535) | (335,363) | |||
Total shareholder's equity | 1,709,531 | 246,224 | 1,767,863 | |||
TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY | 1,826,763 | 263,109 | 1,790,921 | |||
Parent Company [Member] | Class A Ordinary shares [Member] | ||||||
Shareholders’ equity: | ||||||
Ordinary shares, value | 115 | 17 | 110 | |||
Parent Company [Member] | Class B Ordinary shares [Member] | ||||||
Shareholders’ equity: | ||||||
Ordinary shares, value | ¥ 28 | $ 4 | ¥ 32 |
CONDENSED FINANCIAL INFORMAT101
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed statements of comprehensive income (loss)) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Operating expenses: | ||||
Sales and marketing | ¥ (44,921) | $ (6,470) | ¥ (87,022) | ¥ (173,883) |
General and administrative | (247,688) | (35,674) | (232,244) | (156,309) |
Write-off of deferred offering expenses | (3,241) | |||
Indemnity cost | (9,979) | (1,500) | ||
Other operating income | 2,732 | 393 | 6,910 | 17,414 |
Operating profit (loss) | (366,562) | (52,796) | (301,408) | 149,507 |
Interest income | 23,859 | 3,436 | 20,589 | 17,009 |
Income (loss) before income tax | (206,195) | (29,698) | (282,240) | 165,036 |
Income tax benefit | (3,057) | (440) | (41,969) | (7,987) |
Net income (loss) attributable to 500.com Limited | (202,965) | (29,232) | (323,897) | 157,049 |
Comprehensive income (loss) attributable to 500.com Limited | (119,864) | (17,263) | (257,046) | 169,194 |
Parent Company [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net Revenues | 0 | |||
Operating expenses: | ||||
Sales and marketing | (402) | (58) | (330) | (214) |
General and administrative | (15,934) | (2,295) | (13,160) | (11,875) |
Write-off of deferred offering expenses | (3,241) | |||
Total operating expenses | (16,336) | (2,353) | (13,490) | (15,330) |
Indemnity cost | (9,979) | (1,500) | ||
Other operating income | 39 | 7 | ||
Operating profit (loss) | (26,276) | (3,846) | (13,490) | (15,330) |
Interest income | 10,269 | 1,479 | 8,703 | 10,920 |
Equity in profits (loss) of subsidiaries and VIEs | (186,958) | (26,865) | (319,110) | 161,459 |
Income (loss) before income tax | (202,965) | (29,232) | (323,897) | 157,049 |
Income tax benefit | ||||
Net income (loss) attributable to 500.com Limited | (202,965) | (29,232) | (323,897) | 157,049 |
Other comprehensive income Foreign currency translation gain | 82,347 | 11,860 | 66,851 | 12,145 |
Comprehensive income (loss) attributable to 500.com Limited | ¥ (120,618) | $ (17,372) | ¥ (257,046) | ¥ 169,194 |
CONDENSED FINANCIAL INFORMAT102
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Statements of Cash Flows) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash (used in) generated from operating activities | ¥ (114,341) | $ (16,469) | ¥ 42,375 | ¥ 250,553 |
Net cash (used in) generated from investing activities | 503,833 | 72,567 | (922,063) | (395,744) |
Net cash generated from(used in) financing activities | (117,094) | (16,865) | 748,461 | 84,922 |
Effect of exchange rate changes on cash and cash equivalents | 47 | 7 | 46,328 | 1,507 |
Net (decrease) increase in cash and cash equivalents | 272,445 | 39,240 | (84,899) | (58,762) |
Cash and cash equivalents at beginning of the year | 400,657 | 57,707 | 485,556 | 544,318 |
Cash and cash equivalents at end of the year | 673,102 | 96,947 | 400,657 | 485,556 |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash (used in) generated from operating activities | 25,679 | 3,699 | (2,266) | (26,721) |
Net cash (used in) generated from investing activities | 413,401 | 59,542 | (865,971) | (293,289) |
Net cash generated from(used in) financing activities | (118,484) | (17,065) | 748,755 | 42,315 |
Effect of exchange rate changes on cash and cash equivalents | 481 | 69 | 46,328 | 1,507 |
Net (decrease) increase in cash and cash equivalents | 321,077 | 46,245 | (73,154) | (276,188) |
Cash and cash equivalents at beginning of the year | 20,594 | 2,966 | 93,748 | 369,936 |
Cash and cash equivalents at end of the year | ¥ 341,671 | $ 49,211 | ¥ 20,594 | ¥ 93,748 |
CONDENSED FINANCIAL INFORMAT103
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Schedule of Condensed Balance Sheets) (Parenthetical) (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
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 | $ 0.00005 | |
Ordinary shares, shares authorized | 700,000,000 | 700,000,000 | 700,000,000 | |
Ordinary shares, shares issued | 335,494,792 | 334,034,932 | 254,844,582 | 66,539,000 |
Ordinary shares, shares outstanding | 335,494,792 | 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 | $ 0.00005 | |
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | |
Ordinary shares, shares issued | 74,400,299 | 84,999,159 | 96,634,529 | 262,197,451 |
Ordinary shares, shares outstanding | 74,400,299 | 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 | 335,494,792 | 334,034,932 | ||
Ordinary shares, shares outstanding | 335,494,792 | 334,034,932 | ||
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 | 74,400,299 | 84,999,159 | ||
Ordinary shares, shares outstanding | 74,400,299 | 84,999,159 |