Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 001-35729 |
Entity Registrant Name | JOYY INC |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 30 Pasir Panjang Road #15-31A |
Entity Address, City or Town | Mapletree Business City |
Entity Address, Postal Zip Code | 117440 |
Entity Address, Country | SG |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001530238 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
ADS [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares (each representing 20 Class A common shares, par value US$0.00001 per share) |
Security Exchange Name | NASDAQ |
Trading Symbol | YY |
Class A common shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A common shares, par value US$0.00001 per share* |
Security Exchange Name | NASDAQ |
Trading Symbol | YY |
Entity Common Stock, Shares Outstanding | 1,272,346,218 |
Class B common shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 326,509,555 |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | David Xueling Li |
Entity Address, Address Line One | 30 Pasir Panjang Road #15-31A |
Entity Address, City or Town | Mapletree Business City |
Entity Address, Postal Zip Code | 117440 |
Entity Address, Country | SG |
City Area Code | 65 |
Local Phone Number | 63519330 |
Contact Personnel Email Address | lxl@joyy.sg |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 11,371,264 | $ 1,742,722 | ¥ 2,710,623 |
Restricted cash and cash equivalents | 89,604 | 13,732 | 3,500 |
Short-term deposits | 8,645,939 | 1,325,048 | 10,027,440 |
Restricted short-term deposits | 205,461 | 31,488 | 653,034 |
Short-term investments | 3,191,338 | 489,094 | 3,332,331 |
Accounts receivable, net of allowance of RMB64 and RMB48,202 as of December 31, 2019 and 2020, respectively | 933,057 | 142,997 | 668,342 |
Amounts due from related parties, net of allowance of RMB14,099 and RMB14,886 as of December 31, 2019 and 2020, respectively | 3,986 | 611 | 1,709 |
Financing receivables, net of allowance of RMB120,270 and RMB129,989 as of December 31, 2019 and 2020, respectively | 1,122 | 172 | 105,344 |
Prepayments and other current assets, net of allowance of RMB24,231 and RMB37,559 as of December 31, 2019 and 2020, respectively | 671,230 | 102,871 | 538,089 |
Assets held for sale | 342,743 | 52,528 | 10,759,557 |
Total current assets | 25,455,744 | 3,901,263 | 28,799,969 |
Non-current assets | |||
Deferred tax assets | 0 | 0 | 67,111 |
Investments | 8,086,663 | 1,239,335 | 1,983,483 |
Property and equipment, net | 2,620,797 | 401,655 | 2,079,084 |
Land use rights, net | 1,688,448 | 258,766 | 1,736,544 |
Intangible assets, net | 2,245,962 | 344,209 | 3,082,259 |
Right-of-use assets, net | 140,802 | 21,579 | 172,783 |
Goodwill | 12,215,156 | 1,872,055 | 12,947,192 |
Financing receivables, net of allowance of RMB66,500 and RMB66,500 as of December 31, 2019 and 2020, respectively | 128,644 | 19,716 | 129,380 |
Other non-current assets | 70,196 | 10,758 | 275,957 |
Assets held for sale | 166,382 | 25,499 | 935,721 |
Total non-current assets | 27,363,050 | 4,193,572 | 23,409,514 |
Total assets | 52,818,794 | 8,094,835 | 52,209,483 |
Current liabilities | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Company of RMB89,708 and RMB104,691 as of December 31, 2019 and 2020, respectively) | 136,733 | 20,955 | 120,826 |
Deferred revenue (including deferred revenue of the consolidated VIEs without recourse to the Company of RMB78,877 and RMB111,839 as of December 31, 2019 and 2020, respectively) | 438,669 | 67,229 | 192,754 |
Advances from customers (including advances from customers of the consolidated VIEs without recourse to the Company of RMB7,908 and RMB191 as of December 31, 2019 and 2020, respectively) | 5,058 | 775 | 7,908 |
Income taxes payable (including income taxes payable of the consolidated VIEs without recourse to the Company of RMB296,032 and RMB127,186 as of December 31, 2019 and 2020, respectively) | 397,334 | 60,894 | 422,113 |
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the consolidated VIEs without recourse to the Company of RMB877,942 and RMB707,610 as of December 31, 2019 and 2020, respectively) | 3,160,985 | 484,442 | 2,420,588 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Company of RMB194,336 and RMB14,837 as of December 31, 2019 and 2020, respectively) | 24,941 | 3,822 | 205,921 |
Lease liabilities due within one year (including lease liabilities due within one year of the consolidated VIEs without recourse to the Company of RMB28,874 and RMB30,682 as of December 31, 2019 and 2020, respectively) | 93,513 | 14,331 | 83,686 |
Short-term loans (including short-term loans of the consolidated VIEs without recourse to the Company of RMB270,565 and RMB669,048 as of December 31, 2019 and 2020, respectively) | 734,371 | 112,547 | 557,203 |
Liabilities held for sale (including liabilities held for sale of the consolidated VIEs without recourse to the Company of RMB3,113,821 and RMB1,164,022 as of December 31, 2019 and 2020, respectively) | 1,168,667 | 179,106 | 3,626,622 |
Total current liabilities | 6,160,271 | 944,101 | 7,637,621 |
Non-current liabilities | |||
Convertible bonds (including convertible bonds of the consolidated VIEs without recourse to the Company of nil and nil as of December 31, 2019 and 2020, respectively) | 5,084,362 | 779,213 | 5,008,571 |
Lease liabilities (including lease liabilities of the consolidated VIEs without recourse to the Company of RMB26,305 and RMB12,935 as of December 31, 2019 and 2020, respectively) | 52,989 | 8,121 | 92,669 |
Deferred revenue(including deferred revenue of the consolidated VIEs without recourse to the Company of RMB4,988 and RMB9,703 as of December 31, 2019 and 2020, respectively) | 20,437 | 3,132 | 17,418 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Company of RMB85,479 and RMB70,900 as of December 31, 2019 and 2020, respectively) | 276,802 | 42,422 | 264,639 |
Other non-current liabilities (including other non-current liabilities of the consolidated VIEs without recourse to the Company of RMB11,495 and nil as of December 31, 2019 and 2020, respectively) | 0 | 0 | 11,495 |
Liabilities held for sale (including liabilities held for sale of the consolidated VIEs without recourse to the Company of RMB227,923 and RMB28,807 as of December 31, 2019 and 2020, respectively) | 28,807 | 4,415 | 293,233 |
Total non-current liabilities | 5,463,397 | 837,303 | 5,688,025 |
Total liabilities | 11,623,668 | 1,781,404 | 13,325,646 |
Commitments and contingencies (Note 30) | |||
Mezzanine equity | 473,816 | 72,615 | 466,071 |
Shareholders' equity | |||
Treasury Shares (US$0.00001 par value; 8,682,900 and 41,862,606 shares held as of December 31, 2019 and December 31, 2020, respectively) | (938,038) | (143,761) | (168,072) |
Additional paid-in capital | 22,853,665 | 3,502,477 | 21,921,562 |
Statutory reserves | 114,871 | 17,605 | 149,961 |
Retained earnings | 19,510,874 | 2,990,172 | 10,272,122 |
Accumulated other comprehensive income (loss) | (856,032) | (131,190) | 890,209 |
Total JOYY Inc.'s shareholders' equity | 40,685,442 | 6,235,319 | 33,065,886 |
Non-controlling interests | 35,868 | 5,497 | 5,351,880 |
Total shareholders' equity | 40,721,310 | 6,240,816 | 38,417,766 |
Total liabilities, mezzanine equity and shareholders' equity | 52,818,794 | 8,094,835 | 52,209,483 |
Class A common shares | |||
Shareholders' equity | |||
Common shares | 78 | 12 | 80 |
Class B common shares | |||
Shareholders' equity | |||
Common shares | ¥ 24 | $ 4 | ¥ 24 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares |
Allowance for doubtful receivables | ¥ 48,202 | ¥ 64 | ||
Allowance for amount due from related parties | 14,886 | 14,099 | ||
Allowance for financing receivables, current | 129,989 | 120,270 | ||
Allowance for prepayments and other current assets | 37,559 | 24,231 | ||
Allowance for financing receivables, non-current | 66,500 | 66,500 | ||
Accounts payable | 136,733 | $ 20,955 | 120,826 | |
Deferred revenue | 438,669 | 67,229 | 192,754 | |
Advances from customers | 5,058 | 775 | 7,908 | |
Income taxes payable | 397,334 | 60,894 | 422,113 | |
Accrued liabilities and other current liabilities | 3,160,985 | 484,442 | 2,420,588 | |
Amounts due to related parties | 24,941 | 3,822 | 205,921 | |
Lease liabilities due within one year | 93,513 | 14,331 | 83,686 | |
Short-term loans | 734,371 | 112,547 | 557,203 | |
Liabilities held for sale, current | 1,168,667 | 179,106 | 3,626,622 | |
Convertible bond, Noncurrent | 5,084,362 | 779,213 | 5,008,571 | |
Lease liabilities | 52,989 | 8,121 | 92,669 | |
Deferred revenue | 20,437 | 3,132 | 17,418 | |
Deferred tax liabilities | 276,802 | 42,422 | 264,639 | |
Other non-current liabilities | 0 | 0 | 11,495 | |
Liabilities held for sale, non-current | ¥ 28,807 | $ 4,415 | ¥ 293,233 | |
Treasury shares, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||
Number of treasury shares held | shares | 41,862,606 | 41,862,606 | 8,682,900 | |
Class A common shares | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | 0.00001 | ||
Common shares, shares authorized | shares | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | |
Common shares, shares issued | shares | 1,314,208,824 | 1,314,208,824 | 1,301,845,404 | |
Common shares, shares outstanding | shares | 1,272,346,218 | 1,272,346,218 | 1,293,162,504 | |
Class B common shares | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||
Common shares, shares authorized | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Common shares, shares issued | shares | 326,509,555 | 326,509,555 | 326,509,555 | |
Common shares, shares outstanding | shares | 326,509,555 | 326,509,555 | 326,509,555 | |
Variable interest entity | ||||
Accounts payable | ¥ 104,691 | ¥ 89,708 | ||
Deferred revenue | 111,839 | 78,877 | ||
Advances from customers | 191 | 7,908 | ||
Income taxes payable | 127,186 | 296,032 | ||
Accrued liabilities and other current liabilities | 707,610 | 877,942 | ||
Amounts due to related parties | 14,837 | 194,336 | ||
Lease liabilities due within one year | 30,682 | 28,874 | ||
Short-term loans | 669,048 | 270,565 | ||
Liabilities held for sale, current | 1,164,022 | 3,113,821 | ||
Convertible bond, Noncurrent | 0 | 0 | ||
Lease liabilities | 12,935 | 26,305 | ||
Deferred revenue | 9,703 | 4,988 | ||
Deferred tax liabilities | 70,900 | 85,479 | ||
Other non-current liabilities | 0 | 11,495 | ||
Liabilities held for sale, non-current | ¥ 28,807 | ¥ 227,923 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | ||||||
Net revenues | |||||||||
Others | ¥ 706,120 | $ 108,218 | ¥ 908,519 | ¥ 468,001 | |||||
Total net revenues | 13,230,945 | 2,027,731 | 6,239,309 | 829,476 | |||||
Cost of revenues | [1] | (9,509,589) | (1,457,408) | (4,552,658) | (725,701) | ||||
Gross profit | 3,721,356 | 570,323 | 1,686,651 | 103,775 | |||||
Operating expenses | |||||||||
Research and development expenses | [1] | (2,096,796) | (321,348) | (1,633,668) | (514,854) | ||||
Sales and marketing expenses | (3,484,814) | (534,071) | [1] | (2,794,724) | [1] | (463,953) | [1] | ||
General and administrative expenses | (1,016,544) | (155,792) | [1] | (938,219) | [1] | (391,837) | [1] | ||
Total operating expenses | (6,598,154) | (1,011,211) | (5,366,611) | (1,370,644) | |||||
Gain on disposal of business | 0 | 0 | 82,699 | 0 | |||||
Other income | 56,111 | 8,599 | 39,306 | 11,904 | |||||
Operating loss | (2,820,687) | (432,289) | (3,557,955) | (1,254,965) | |||||
Interest expense | (522,015) | (80,002) | (266,517) | (8,616) | |||||
Interest income and investment income | 614,014 | 94,102 | 426,631 | 327,438 | |||||
Foreign currency exchange (losses) gains, net | (118,859) | (18,216) | 8,639 | (565) | |||||
Gain on disposal and deemed disposal of investments | 1,897,128 | 290,748 | 0 | 16,178 | |||||
Gain on fair value changes of investments | 1,127,714 | 172,830 | 2,679,312 | 1,487,405 | |||||
Fair value change on derivatives | (42,320) | (6,486) | (16,011) | 0 | |||||
Other non-operating expenses | (17,257) | (2,645) | 0 | (2,000) | |||||
Income (loss) before income tax expenses | 117,718 | 18,042 | (725,901) | 564,875 | |||||
Income tax (expenses) benefit | (192,337) | (29,477) | 141,108 | (67,800) | |||||
Income (loss) before share of income in equity method investments, net of income taxes | (74,619) | (11,435) | (584,793) | 497,075 | |||||
Share of income (loss) in equity method investments, net of income taxes | (51,759) | (7,932) | 41,315 | 120,636 | |||||
Net income (loss) from continuing operations | (126,378) | (19,367) | (543,478) | 617,711 | |||||
Net income from discontinued operations | 9,849,538 | 1,509,507 | 4,243,507 | 1,497,986 | |||||
Net income | 9,723,160 | 1,490,140 | 3,700,029 | 2,115,697 | |||||
Less: Net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified non-controlling interest shareholders | 48,129 | 7,376 | 254,794 | (93,310) | |||||
Net income attributable to controlling interest of JOYY Inc. | 9,675,031 | 1,482,764 | 3,445,235 | 2,209,007 | |||||
Net income (loss) from continuing operations attributable to controlling interest of JOYY Inc. | (105,112) | (16,109) | (516,703) | 625,319 | |||||
Net income from discontinued operations attributable to controlling interest of JOYY Inc. | 9,780,143 | 1,498,873 | 3,961,938 | 1,583,688 | |||||
Less: Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | 38,474 | 5,896 | 38,346 | 73,159 | |||||
Cumulative dividend on subsidiary's Series A Preferred Shares Cumulative dividend on subsidiary's Series A Preferred Shares | 27,651 | 4,238 | 27,559 | 4,606 | |||||
Deemed dividend to subsidiary's preferred shareholders | 0 | 0 | 0 | 489,284 | |||||
Net income attributable to common shareholders of JOYY Inc. | 9,608,906 | 1,472,630 | 3,379,330 | 1,641,958 | |||||
Net income (loss) from continuing operations attributable to common shareholders of JOYY Inc. | (171,237) | (26,243) | (582,608) | 614,630 | |||||
Net income from discontinued operations attributable to common shareholders of JOYY Inc. | 9,780,143 | 1,498,873 | 3,961,938 | 1,027,328 | |||||
Other comprehensive income (loss): | |||||||||
Foreign currency translation adjustments, net of nil tax | (1,455,118) | (223,007) | 571,815 | 434,080 | |||||
Comprehensive income attributable to the common shareholders of JOYY Inc. | ¥ 8,153,788 | $ 1,249,623 | ¥ 3,951,145 | ¥ 2,076,038 | |||||
Net income (loss) per ADS | |||||||||
Net income (loss) per share, Basic | (per share) | ¥ 6 | $ 0.92 | [2] | ¥ 2.19 | ¥ 1.28 | [2] | |||
Net income (loss) per share, Basic, Continuing operations | (per share) | (0.11) | (0.02) | (0.38) | 0.48 | |||||
Net income (loss) per share, Basic, Discontinued operations | (per share) | 6.11 | 0.94 | 2.57 | 0.80 | |||||
Net income (loss) per share, Diluted | (per share) | [2] | 6 | 0.92 | 2.18 | 1.27 | ||||
Net income (loss) per share, Diluted, Continuing operations | (per share) | (0.11) | (0.02) | (0.38) | 0.48 | |||||
Net income (loss) per share, Diluted, Discontinued operations | (per share) | ¥ 6.11 | $ 0.94 | ¥ 2.56 | ¥ 0.79 | |||||
Weighted average number of ADS/Common shares used in calculating net income (loss) per ADS/Common share | |||||||||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Continuing operations | 1,600,199,759 | 1,600,199,759 | 1,544,396,920 | 1,280,847,795 | |||||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Discontinued operations | 1,600,199,759 | 1,600,199,759 | 1,544,396,920 | 1,280,847,795 | |||||
Weighted average number of share used in calculating net income (loss) per ADS, Diluted, Continuing operations | 1,600,199,759 | 1,600,199,759 | 1,544,396,920 | 1,293,908,738 | |||||
Weighted Average Number of Shares Outstanding, Diluted, From Discontinued Operations | [2] | 1,600,199,759 | 1,600,199,759 | 1,544,396,920 | 1,293,908,738 | ||||
ADS | |||||||||
Net income (loss) per ADS | |||||||||
Net income (loss) per share, Basic | (per share) | [2] | ¥ 120.10 | $ 18.40 | ¥ 43.77 | ¥ 25.64 | ||||
Net income (loss) per share, Basic, Continuing operations | (per share) | (2.14) | [2] | (0.33) | (7.54) | [2] | 9.60 | [2] | ||
Net income (loss) per share, Basic, Discontinued operations | (per share) | 122.24 | [2] | 18.73 | 51.31 | [2] | 16.04 | [2] | ||
Net income (loss) per share, Diluted | (per share) | [2] | 120.04 | 18.39 | 43.59 | 25.38 | ||||
Net income (loss) per share, Diluted, Continuing operations | (per share) | (2.14) | [2] | (0.33) | (7.54) | [2] | 9.50 | [2] | ||
Net income (loss) per share, Diluted, Discontinued operations | (per share) | ¥ 122.18 | [2] | $ 18.72 | ¥ 51.13 | [2] | ¥ 15.88 | [2] | ||
Weighted average number of ADS/Common shares used in calculating net income (loss) per ADS/Common share | |||||||||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Continuing operations | 80,009,988 | 80,009,988 | 77,219,846 | 64,042,390 | |||||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Discontinued operations | 80,009,988 | 80,009,988 | 77,219,846 | 64,042,390 | |||||
Weighted average number of share used in calculating net income (loss) per ADS, Diluted, Continuing operations | 80,009,988 | 80,009,988 | 77,219,846 | 64,695,437 | |||||
Weighted Average Number of Shares Outstanding, Diluted, From Discontinued Operations | 80,009,988 | 80,009,988 | 77,219,846 | 64,695,437 | |||||
Live streaming | |||||||||
Net revenues | |||||||||
Total net revenues | ¥ 12,524,825 | $ 1,919,513 | ¥ 5,330,790 | ¥ 361,475 | |||||
[1] | Share-based compensation was allocated in cost of revenues and operating expenses as follows | ||||||||
[2] | Each ADS represents 20 common shares. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Share-based compensation | ¥ 635,976 | $ 97,468 | ¥ 526,076 | ¥ 228,134 |
Cost of revenues | ||||
Share-based compensation | 39,910 | 6,116 | 41,006 | 46,373 |
Research and development expenses | ||||
Share-based compensation | 295,289 | 45,256 | 362,441 | 96,585 |
Sales and marketing expenses | ||||
Share-based compensation | 9,018 | 1,382 | 5,000 | 1,418 |
General and administrative expenses | ||||
Share-based compensation | ¥ 291,759 | $ 44,714 | ¥ 117,629 | ¥ 83,758 |
Class A common shares | ||||
Number of common shares represented by each ADS | 20 | 20 | 20 | 20 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | common StockClass A common sharesCNY (¥)shares | common StockClass B common sharesCNY (¥)shares | Treasury StockCNY (¥) | Additional paid-in capitalCNY (¥) | Statutory reservesCNY (¥) | Retained earningsCNY (¥) | Accumulated other comprehensive income (loss)CNY (¥) | Total JOYY Inc.'s shareholders' equityCNY (¥) | Non controlling interestsCNY (¥) | Class A common sharesshares | Class B common sharesshares | CNY (¥) | USD ($) |
Balance at Dec. 31, 2017 | ¥ 57 | ¥ 23 | ¥ 5,339,844 | ¥ 62,718 | ¥ 5,218,110 | ¥ (9,597) | ¥ 10,611,155 | ¥ 101,704 | ¥ 10,712,859 | ||||
Balance (in shares) at Dec. 31, 2017 | shares | 945,245,908 | 317,982,976 | |||||||||||
Adoption of ASU | Adoption of ASU 2016-01 | 87,802 | (87,802) | |||||||||||
Issuance of Huya's common shares for exercised share options | ¥ 0 | ¥ 0 | 7 | 0 | 0 | 0 | 7 | 0 | 7 | ||||
Issuance of Huya's common shares for exercised share options (in shares) | shares | 154,260 | 0 | |||||||||||
Issuance of common shares for vested restricted shares and restricted share units | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | shares | 6,540,680 | 0 | |||||||||||
Class B common shares converted to Class A common shares (issued) | ¥ 2 | ||||||||||||
Class B common shares converted to Class A common shares (issued) (in shares) | shares | 29,800,000 | ||||||||||||
Class B common shares converted to Class A common shares (converted) | ¥ (2) | ||||||||||||
Class B common shares converted to Class A common shares (converted) (in shares) | shares | (29,800,000) | ||||||||||||
Issuance of common shares in connection with the acquisition of Bigo | 0 | ||||||||||||
Share-based compensation | ¥ 0 | ¥ 0 | 648,025 | 0 | 0 | 0 | 648,025 | 0 | 648,025 | ||||
Partial disposal of Huya's interests to non-controlling interest shareholders, net of tax | 389,358 | (529) | 388,829 | (34,081) | 354,748 | ||||||||
Appropriation to statutory reserves | 0 | 0 | 0 | 39,007 | (39,007) | 0 | 0 | 0 | 0 | ||||
Acquisition of subsidiaries with non-controlling interest shareholders | 0 | 0 | (13,315) | 0 | 0 | 0 | (13,315) | 0 | (13,315) | ||||
Capital injection in subsidiaries from non-controlling interest shareholders | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 658 | 658 | ||||
Conversion of a Huya's preferred shares to ordinary shares upon the completion of its IPO | 0 | 0 | 4,009,874 | 0 | 0 | 0 | 4,009,874 | 2,280,543 | 6,290,417 | ||||
Proceed from a Huya's IPO, net of issuance cost | 795,073 | 795,073 | 412,676 | 1,207,749 | |||||||||
Components of comprehensive income | |||||||||||||
Net income (loss) attributable to JOYY Inc. and non-controlling interest shareholders | 2,209,007 | 2,209,007 | (94,666) | 2,114,341 | |||||||||
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | 0 | 0 | 0 | 0 | (73,159) | 0 | (73,159) | (4,692) | (77,851) | ||||
Deemed dividend to Huya's Series A Preferred shareholders | (489,284) | (489,284) | (7,711) | (496,995) | |||||||||
Foreign currency translation adjustments, net of nil tax | 0 | 0 | 0 | 0 | 0 | 434,080 | 434,080 | 202,408 | 636,488 | ||||
Balance at Dec. 31, 2018 | ¥ 59 | ¥ 21 | 11,168,866 | 101,725 | 6,913,469 | 336,152 | 18,520,292 | 2,856,839 | 21,377,131 | ||||
Balance (in shares) at Dec. 31, 2018 | shares | 981,740,848 | 288,182,976 | 981,740,848 | 288,182,976 | |||||||||
Issuance of Huya's common shares for exercised share options | ¥ 0 | (18,805) | (1,448) | (20,253) | 52,664 | 32,411 | |||||||
Issuance of common shares for vested restricted shares and restricted share units | ¥ 0 | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | shares | 6,216,060 | 0 | |||||||||||
Issuance of common shares in connection with the acquisition of Bigo | ¥ 21 | ¥ 3 | 7,704,396 | 7,704,420 | 7,704,420 | ||||||||
Issuance of common shares in connection with the acquisition of Bigo (in shares) | shares | 305,127,046 | 38,326,579 | |||||||||||
Net forfeiture of restricted shares | ¥ 0 | ||||||||||||
Net forfeiture of restricted shares (in shares) | shares | 8,761,450 | ||||||||||||
Share-based compensation | ¥ 0 | 0 | 0 | 817,739 | 0 | 0 | 0 | 817,739 | 130,409 | 948,148 | |||
Partial disposal of Huya's interests to non-controlling interest shareholders, net of tax | 0 | 0 | 0 | 553,081 | 0 | 0 | (6,391) | 546,690 | 133,938 | 680,628 | |||
Appropriation to statutory reserves | 0 | 0 | 0 | 0 | 48,236 | (48,236) | 0 | 0 | 0 | 0 | |||
Bifurcation of conversion feature of convertible bonds | 0 | 0 | 0 | 2,014,966 | 0 | 0 | 0 | 2,014,966 | 0 | 2,014,966 | |||
Purchase of caped call options in relation to the conversion features of the convertible bonds | 0 | (527,473) | (527,473) | (527,473) | |||||||||
Exercise/Settlement of RSU's in subsidiaries | 0 | (7,746) | (7,746) | 3,580 | (4,166) | ||||||||
Repurchase of common stock | ¥ 0 | 0 | (168,072) | (83,027) | 0 | 0 | 0 | (251,099) | 0 | (251,099) | |||
Repurchase of common stock (in shares) | shares | (8,682,900) | ||||||||||||
Deemed contribution from non-controlling interest shareholders | ¥ 0 | 0 | 0 | 6,162 | 0 | 0 | 0 | 6,162 | (6,162) | 0 | |||
Proceed from a Huya's IPO, net of issuance cost | 0 | 293,403 | (9,919) | 283,484 | 1,826,582 | 2,110,066 | |||||||
Components of comprehensive income | |||||||||||||
Net income (loss) attributable to JOYY Inc. and non-controlling interest shareholders | 0 | 3,445,235 | 3,445,235 | 254,794 | 3,700,029 | ||||||||
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | 0 | (38,346) | (38,346) | (1,669) | (40,015) | ||||||||
Foreign currency translation adjustments, net of nil tax | 0 | 0 | 0 | 0 | 0 | 0 | 571,815 | 571,815 | 100,905 | 672,720 | |||
Balance at Dec. 31, 2019 | ¥ 80 | ¥ 24 | (168,072) | 21,921,562 | 149,961 | 10,272,122 | 890,209 | 33,065,886 | 5,351,880 | 38,417,766 | |||
Balance (in shares) at Dec. 31, 2019 | shares | 1,293,162,504 | 326,509,555 | 1,293,162,504 | 326,509,555 | |||||||||
Adoption of ASU | Adoption of ASC326 | (10,254) | (10,254) | (1,875) | (12,129) | |||||||||
Issuance of Huya's common shares for exercised share options | (248) | (38) | (286) | 897 | 611 | ||||||||
Issuance of common shares for vested restricted shares and restricted share units | ¥ 1 | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | shares | 12,363,420 | 0 | |||||||||||
Net forfeiture of restricted shares (in shares) | shares | (13,886) | ||||||||||||
Share-based compensation | ¥ 0 | ¥ 0 | 0 | 768,135 | 0 | 0 | 0 | 768,135 | 92,679 | 860,814 | |||
Appropriation to statutory reserves | 0 | 0 | 0 | 0 | 29,589 | (29,589) | 0 | 0 | 0 | 0 | |||
Repurchase of common stock | ¥ (3) | 0 | (769,966) | 84,781 | 0 | 0 | 0 | (685,188) | 0 | (685,188) | |||
Repurchase of common stock (in shares) | shares | (33,165,820) | ||||||||||||
Repurchase of noncontrolling interest and redeemable noncontrolling interests | 8,523 | 8,523 | (22,334) | (13,811) | |||||||||
Deconsolidation of Huya | (64,679) | 64,679 | (245,903) | (245,903) | (5,537,652) | (5,783,555) | |||||||
Other Equity Changes From Equity Method Investments | 70,313 | 23,642 | (45,182) | 48,773 | 48,773 | ||||||||
Dividends declared | (446,283) | (446,283) | (2,251) | (448,534) | |||||||||
Deemed contribution from non-controlling interest shareholders | 599 | 599 | (599) | ||||||||||
Acquisition of subsidiaries with non-controlling interest shareholders | (33,272) | (33,272) | |||||||||||
Capital injection in subsidiaries from non-controlling interest shareholders | 10,548 | 10,548 | |||||||||||
Components of comprehensive income | |||||||||||||
Net income (loss) attributable to JOYY Inc. and non-controlling interest shareholders | ¥ 0 | 0 | 0 | 0 | 0 | 9,675,031 | 0 | 9,675,031 | 48,129 | 9,723,160 | |||
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | 0 | 0 | 0 | 0 | 0 | (38,474) | 0 | (38,474) | (1,675) | (40,149) | |||
Foreign currency translation adjustments, net of nil tax | (1,455,118) | (1,455,118) | 64,849 | (1,390,269) | |||||||||
Balance at Dec. 31, 2020 | ¥ 78 | ¥ 24 | ¥ (938,038) | ¥ 22,853,665 | ¥ 114,871 | ¥ 19,510,874 | ¥ (856,032) | ¥ 40,685,442 | ¥ 35,868 | ¥ 40,721,310 | $ 6,240,816 | ||
Balance (in shares) at Dec. 31, 2020 | shares | 1,272,346,218 | 326,509,555 | 1,272,346,218 | 326,509,555 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |||
Foreign currency translation adjustments, tax portion |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities | ||||
Net income | ¥ 9,723,160 | $ 1,490,140 | ¥ 3,700,029 | ¥ 2,115,697 |
Net income from discontinued operations | (9,849,538) | (1,509,507) | (4,243,507) | (1,497,986) |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation of property and equipment | 535,498 | 82,069 | 275,741 | 65,054 |
Amortization of acquired intangible assets and land use rights | 756,427 | 115,928 | 699,243 | 60,246 |
Amortization of right-of-use assets | 114,010 | 17,473 | 78,222 | 0 |
Allowance for doubtful accounts | 64,928 | 9,951 | 169,522 | 53,441 |
(Gain) loss on disposal of property and equipment, intangible assets and other long-term assets | 19,193 | 2,941 | 1,161 | (803) |
Impairment of investments | 43,861 | 6,722 | 62,334 | 35,348 |
Impairment of property and equipment | 0 | 0 | 5,347 | 0 |
Impairment of intangible assets | 0 | 0 | 3,061 | 0 |
Share-based compensation | 635,976 | 97,468 | 526,076 | 228,134 |
Share of (income) loss in equity method investments, net of income taxes | 51,759 | 7,932 | (41,315) | (120,636) |
Gain on disposal and deemed disposal of investments | (1,897,128) | (290,748) | 0 | (16,178) |
Gain on disposal of business | 0 | 0 | (82,699) | 0 |
Cash dividend received from an equity in investee | 2,400 | 368 | 0 | 0 |
Deferred income taxes, net | 87,205 | 13,365 | (138,448) | 14,277 |
Foreign currency exchange losses (gains), net | 118,859 | 18,216 | (8,639) | 565 |
Interest expense | 446,018 | 68,355 | 211,226 | 0 |
Investment income | 19,252 | 2,950 | (28,712) | (14,552) |
Gain on fair value changes of investments | (1,127,714) | (172,830) | (2,679,312) | (1,487,405) |
Fair value loss on derivative liabilities | 42,320 | 6,486 | 16,011 | 0 |
Changes in operating assets and liabilities, net of business acquisition and disposal of subsidiaries | ||||
Accounts receivable | (385,413) | (59,067) | (113,617) | (37,383) |
Interest receivables recorded in financing receivables | (2,541) | (389) | (13,720) | (832) |
Prepayments and other assets | (226,932) | (34,781) | (163,232) | (72,783) |
Amounts due from related parties | (15,437) | (2,366) | (227,662) | 140,723 |
Inventory | 0 | 0 | 0 | 315 |
Lease liabilities | (104,278) | (15,981) | (77,738) | 0 |
Amounts due to related parties | 30,272 | 4,639 | 22,713 | (53,804) |
Accounts payable | (81,351) | (12,468) | (26,388) | 12,408 |
Deferred revenue | 269,565 | 41,313 | (7,258) | (10,697) |
Advances from customers | (9,344) | (1,432) | 2,639 | 1,657 |
Income taxes payable | (23,718) | (3,635) | 61,212 | 69,239 |
Accrued liabilities and other current liabilities | 743,906 | 114,009 | 786,482 | 353,638 |
Net cash used in continuing operating activities | (18,785) | (2,879) | (1,231,228) | (162,317) |
Net cash provided by discontinued operating activities | 3,442,891 | 527,646 | 5,812,919 | 4,627,131 |
Net cash provided by operating activities | 3,424,106 | 524,767 | 4,581,691 | 4,464,814 |
Cash flows from investing activities | ||||
Placements of short-term deposits | (8,253,784) | (1,264,948) | (11,086,310) | (3,730,907) |
Maturities of short-term deposits | 9,393,835 | 1,439,668 | 4,417,151 | 6,873,339 |
Placements of long-term deposits | 0 | 0 | 0 | (1,000,000) |
Placements of short-term investments | (6,287,502) | (963,602) | (4,829,241) | (2,641,322) |
Maturities of short-term investments | 6,405,431 | 981,675 | 2,204,513 | 2,101,533 |
Placements of derivative financial instruments | 0 | 0 | (10,832) | 0 |
Purchase of property and equipment | (1,043,642) | (159,945) | (853,807) | (232,032) |
Purchase of intangible assets and land use right | (13,647) | (2,091) | (47,668) | (6,255) |
Purchase of other non-current assets | (59) | (9) | (132,000) | 0 |
Prepayments for investments | 0 | 0 | (525) | 0 |
Cash paid for investments | (1,427,926) | (218,839) | (548,731) | (2,354,337) |
Cash received from disposal of investments | 5,715,243 | 875,899 | 163,526 | 708,476 |
Cash distribution received from equity investees | 80,552 | 12,345 | 0 | 6,125 |
Acquisition of businesses, net of cash, cash equivalents and restricted cash acquired | (32,303) | (4,951) | (1,656,763) | 0 |
Deconsolidation and disposal of a subsidiary, net of cash disposed | 665 | 102 | 0 | 0 |
Payments on behalf of (repayments from) related parties, net | (2,300) | (352) | 12,261 | 2,543 |
Loans to related parties | (5,000) | (766) | (170,000) | (188,000) |
Repayments of loans from related parties | 0 | 0 | 0 | 20,000 |
Loans to employees and third parties | (56,238) | (8,619) | (48,218) | (282,031) |
Repayments of loans from employees and third parties | 200,043 | 30,658 | 142,663 | 35,067 |
Payments to originate financing receivables | 0 | 0 | (779,414) | (1,458,012) |
Principal collection from financing receivables | 91,988 | 14,098 | 1,489,148 | 346,028 |
Proceeds from disposal of property and equipment | 5,724 | 877 | 2,099 | 1,105 |
Net cash (used in) provided by continuing investing activities | 4,771,080 | 731,200 | (11,732,148) | (1,798,680) |
Net cash (used in) provided by discontinued investing activities | 643,857 | 98,675 | (3,877,752) | (4,496,706) |
Net cash (used in) provided by investing activities | 5,414,937 | 829,875 | (15,609,900) | (6,295,386) |
Cash flows from financing activities | ||||
Proceeds from exercise of vested share options | 0 | 0 | 0 | 7 |
Capital contributions from the non-controlling interests shareholders | 10,548 | 1,617 | 0 | 658 |
Capital contributions from mezzanine equity holders | 0 | 0 | 100,536 | 312,149 |
Dividends paid to shareholders | (446,283) | (68,396) | 0 | 0 |
Dividend paid to non-controlling interests in a subsidiary | (2,251) | (345) | 0 | 0 |
Purchase of non-controlling interests and redeemable non-controlling interests | (18,074) | (2,770) | 0 | 0 |
Acquisition of a subsidiary's shares from mezzanine equity holders | 0 | 0 | 0 | (30,000) |
Partial disposal of Huya's interests to non-controlling interest shareholders | 0 | 0 | 748,005 | 378,548 |
Purchase of capped call option in relation to repurchase of common shares | 84,781 | 12,993 | (83,027) | |
Proceeds from bank borrowings | 1,076,396 | 164,964 | 1,550,453 | 691,612 |
Repayment of bank borrowings | (918,380) | (140,748) | (1,014,496) | (1,308,092) |
Proceeds from issuance of common shares, net of issuance cost | 0 | 0 | 0 | (4,473) |
Repurchase of common shares | (732,935) | (112,327) | (168,072) | 0 |
Proceeds from issuance of convertible bonds, net of issuance costs | 0 | 0 | 6,209,590 | 0 |
Repayment of convertible bonds | 0 | 0 | (6,734) | 0 |
Deemed contribution from Huya | 978 | 150 | 10,119 | 0 |
Net cash provided by (used in) continuing financing activities | (945,220) | (144,862) | 7,346,374 | 40,409 |
Net cash provided by discontinued financing activities | 8,591 | 1,317 | 2,123,532 | 4,126,861 |
Net cash provided by (used in) financing activities | (936,629) | (143,545) | 9,469,906 | 4,167,270 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 7,902,414 | 1,211,097 | (1,558,303) | 2,336,698 |
Cash, cash equivalents and restricted cash at the beginning of the year | 4,551,464 | 697,542 | 6,004,231 | 3,617,432 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (581,358) | (89,097) | 105,536 | 50,101 |
Cash, cash equivalents and restricted cash at the end of the year | 11,872,520 | 1,819,542 | 4,551,464 | 6,004,231 |
Less: Cash, cash equivalents and restricted cash of held for sales at the end of the year | 206,191 | 31,600 | 1,184,307 | 757,257 |
Cash, cash equivalents and restricted cash of continuing operations at the end of the year | 11,666,329 | 1,787,942 | 3,367,157 | 5,246,974 |
Supplemental disclosure of cash flows information of continuing operation: | ||||
-Cash paid for interest, net of amounts capitalized | (99,021) | (15,176) | (53,479) | (9,354) |
-Income taxes paid | (468,664) | (71,826) | (492,679) | (354,959) |
Supplemental disclosures of non-cash investing and financing activities of continuing operation: | ||||
-Acquisition of property and equipment | ¥ 110,231 | $ 16,894 | 115,826 | 54,881 |
-Disposal of investments and business | 366,882 | 77,423 | ||
-Common shares issued for the acquisition of Bigo | ¥ 7,704,420 | ¥ 0 |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization and principal activities | |
Organization and principal activities | 1. Organization and principal activities (a) Organization and principal activities JOYY Inc. (the “Company” or “JOYY”), together with its subsidiaries, its VIEs (also referred to as VIEs and their subsidiaries as a whole, where appropriate) (collectively, the “Group”), is a leading global social media platform, offering users around the world a uniquely engaging and immersive experience across various video-based products and services, such as live streaming, short-form videos and video communication. In March 2019, the Company completed the acquisition of Bigo Inc (“Bigo”). Bigo is primarily engaged in the video and audio broadcast business all over the world. The Company paid US$343.1 million in cash and issued 305,127,046 Class A common shares and 38,326,579 Class B common shares of the Company to Bigo’s selling shareholders. The details of this acquisition are disclosed in Note 5(a). On April 3, 2020, the Company signed an agreement with Linen Investment Limited, a wholly owned subsidiary of Tencent Holdings Limited (“Tencent”) to sell its 16,523,819 Class B ordinary shares of HUYA Inc. (NYSE: HUYA) (“Huya”), a subsidiary of the Group, for a cash consideration of approximately US$262.6 million, pursuant to Tencent’s exercise of its option to purchase additional shares of Huya. Upon the closing of the share transfer, the Group held 68,374,463 Class B ordinary shares of Huya, representing approximately 31.2% equity interest and 43.0% of the total voting power calculated based on the total issued and outstanding shares of Huya after this transaction. As a result, Huya ceased to be a subsidiary of the Group and the Group accounted for the investment in Huya using the equity method. The details of this disposal are disclosed in Note 3(b). On August 10, 2020, the Company entered into a definitive share transfer agreement with Linen Investment Limited to sell its 30,000,000 Class B ordinary shares of Huya for a cash consideration of approximately US$810.0 million. Upon the closing of such share transfer, the Company held 38,374,463 Class B ordinary shares of Huya, representing approximately 17.5% equity interest and 24.1% of the total voting power calculated based on the total issued and outstanding shares of Huya after this transaction. On November 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (Nasdaq: BIDU) (“Baidu”). Pursuant to the agreements, Baidu would acquire JOYY’s domestic video-based entertainment live streaming business (“YY Live”), which includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. Out of the total cash consideration of US$3.6 billion, consideration of US$300 million is subject to adjustment based on the achievement of certain conditions of YY Live. Subsequently, the sale was substantially completed on February 8, 2021, with certain customary matters remaining to be completed in the near future. The details of this disposal are disclosed in Note 3(a). (b) Initial Public Offering The Company completed its initial public offering (“IPO”) on November 21, 2012 on the “NASDAQ Global Market”. 1. Organization and principal activities (continued) (c) Principal subsidiaries and VIEs The details of the principal subsidiaries and VIEs through which the Company conducts its business operations as of December 31, 2020 are set out below: % of direct Date of or indirect Place of incorporation or economic Name incorporation acquisition ownership Principal activities Principal subsidiaries Duowan Entertainment Corporation (“Duowan BVI”) British Virgin Islands (“BVI”) November 6, 2007 100 % Investment holding Huanju Shidai Technology (Beijing) Co., Ltd. (“Beijing Huanju Shidai”) PRC March 19, 2008 100 % Investment holding Guangzhou Huanju Shidai Information Technology Co., Ltd. (“Guangzhou Huanju Shidai”) PRC December 2, 2010 100 % Software development Engage Capital Partners I, L.P. (“Engage L.P.”) Cayman Islands March 23, 2015 93.5 % Investment Hago Singapore Pte. Ltd. (“Hago Singapore”) Singapore May 7, 2018 100 % Internet value added services Bigo Cayman Islands March 4, 2019 100 % Investment holding Bigo Technology Pte. Ltd. ("Bigo Singapore") Singapore March 4, 2019 100 % Investment holding, operation of live streaming platform Bigo (Hong Kong) Limited ("Bigo HK") Hong Kong March 4, 2019 100 % Investment holding Guangzhou BaiGuoYuan Information Technology Co., Ltd. (“BaiGuoYuan Technology”) PRC March 4, 2019 100 % Software development and provision of information technology services Principal VIEs Guangzhou Huaduo Network Technology Co., Ltd. ("Guangzhou Huaduo") PRC April 11, 2005 100 % Holder of internet content provider licenses and internet value added services Guangzhou BaiGuoYuan Network Technology Co., Ltd. ("Guangzhou BaiGuoYuan") PRC March 4, 2019 100 % Holder of internet content provider licenses and internet value added services (d) Variable Interest Entities To comply with PRC laws and regulations that prohibit or restrict foreign ownership of companies that provide internet-content, the Group conducts its operations primarily through its principal VIEs, Guangzhou Huaduo and Guangzhou BaiGuoYuan, which hold the internet value-added service license and approvals to provide such internet services in the PRC. Before the disposal of Huya in April 2020, the Group also conducted its operations through its principal VIE, Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”), which hold the internet value-added service license and approvals to provide such internet services in the PRC. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (i) VIE agreements amongst Beijing Huanju Shidai, Guangzhou Huaduo and its nominee shareholders The following is a summary of the contractual arrangements entered among Beijing Huanju Shidai, Guangzhou Huaduo and its nominee shareholders: ● Exclusive Technology Support and Technology Services Agreement Under the exclusive technology support and technology services agreement between Beijing Huanju Shidai and Guangzhou Huaduo, Beijing Huanju Shidai has the exclusive right to provide to Guangzhou Huaduo technology support and technology services related to all technologies needed for its business. Beijing Huanju Shidai owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Guangzhou Huaduo to Beijing Huanju Shidai is determined by various factors, including the expenses Beijing Huanju Shidai incurs for providing such services and Guangzhou Huaduo’s revenues. The term of this agreement will expire in 2028 and may be extended with Beijing Huanju Shidai’s written confirmation prior to the expiration date. Beijing Huanju Shidai is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huaduo. ● Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement between Beijing Huanju Shidai and Guangzhou Huaduo, Beijing Huanju Shidai has the exclusive right to provide to Guangzhou Huaduo technology support, business support and consulting services related to the services provided by Guangzhou Huaduo, the scope of which is to be determined by Beijing Huanju Shidai from time to time. Beijing Huanju Shidai owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Guangzhou Huaduo to Beijing Huanju Shidai is a certain percentage of its earnings. The term of this agreement will expire in 2038 and may be extended with Beijing Huanju Shidai’s written confirmation prior to the expiration date. Beijing Huanju Shidai is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huaduo. ● Exclusive Option Agreement The parties to the exclusive option agreement are Beijing Huanju Shidai, Guangzhou Huaduo and each of the shareholders of Guangzhou Huaduo. Under the exclusive option agreement, each of the shareholders of Guangzhou Huaduo irrevocably granted Beijing Huanju Shidai or its designated representative(s) an exclusive option to purchase, to the extent permitted under PRC law, all or part of his or its equity interests in Guangzhou Huaduo. Beijing Huanju Shidai or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Beijing Huanju Shidai’s prior written consent, Guangzhou Huaduo’s shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou Huaduo. The term of this agreement is ten years and may be extended at Beijing Huanju Shidai’s sole discretion. ● Powers of Attorney Pursuant to the irrevocable power of attorney executed by each shareholder of Guangzhou Huaduo, each such shareholder appointed Beijing Huanju Shidai as its attorney-in-fact to exercise such shareholders’ rights in Guangzhou Huaduo, including, without limitation, the power to vote on its behalf on all matters of Guangzhou Huaduo requiring shareholder approval under PRC laws and regulations and the articles of association of Guangzhou Huaduo. Each power of attorney will remain in force until the shareholder ceases to hold any equity interest in Guangzhou Huaduo. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (i) VIE agreements amongst Beijing Huanju Shidai, Guangzhou Huaduo and its nominee shareholders (continued) ● Share Pledge Agreement Pursuant to the share pledge agreement between Beijing Huanju Shidai and the shareholders of Guangzhou Huaduo, the shareholders of Guangzhou Huaduo have pledged all of their equity interests in Guangzhou Huaduo to Beijing Huanju Shidai to guarantee the performance by Guangzhou Huaduo and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement, exclusive technology support and technology services agreement and powers of attorney. If Guangzhou Huaduo and/or its shareholders breach their contractual obligations under those agreements, Beijing Huanju Shidai, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. (ii) VIE agreements amongst Huya Technology (defined as below), Guangzhou Huya and its nominee shareholders In 2017, Huya undertook a reorganization (the “Huya Reorganization”) through setting up Guangzhou Huya Technology Co., Ltd. (“Huya Technology”), a wholly owned subsidiary, and entering into a series of VIE agreements with Guangzhou Huya and its nominee shareholders. The Huya Reorganization was completed on July 10, 2017. The following is a summary of the contractual arrangements entered among Huya Technology, Guangzhou Huya and its nominee shareholders: ● Exclusive Business Cooperation Agreement Huya Technology and Guangzhou Huya entered into exclusive business cooperation agreement under which Guangzhou Huya engages Huya Technology as its exclusive provider of technology support, business support and consulting services. Guangzhou Huya shall pay to Huya Technology service fees, which is determined by Huya Technology at its sole discretion. Huya Technology shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising from the performance of the agreement. During the term of the agreement, Guangzhou Huya shall not accept any consultations and/or services provided by any third party and shall not cooperate with any third party for the provision of identical or similar services without prior consent of Huya Technology. The term of this agreement is ten years and will be extended for ten years automatically after expiration, unless otherwise agreed by both parties in a written agreement. Huya Technology is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huya. ● Exclusive Purchase Option Agreement Under the exclusive purchase option agreement, the nominee shareholders of Guangzhou Huya have granted Huya Technology or its designated representative(s) irrevocably an exclusive option to purchase, to the extent permitted under PRC law, all or part of their equity interests in Guangzhou Huya at the lowest price permitted by the laws of the PRC applicable at the time of exercise. Huya Technology or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Huya Technology’s prior written consent, the nominee shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou Huya. The term of this agreement is ten years and may be extended for another ten years at Huya Technology’s sole discretion. Huya Technology is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huya. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (ii) VIE agreements amongst Huya Technology, Guangzhou Huya and its nominee shareholders (continued) ● Equity Pledge Agreement Pursuant to the equity pledge agreement, the nominee shareholders of Guangzhou Huya have pledged all of their equity interests in Guangzhou Huya to Huya Technology to guarantee the performance by Guangzhou Huya and its nominee shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive purchase option agreement, and powers of attorney. The nominee shareholders shall not transfer or assign the equity interests, the rights and obligations in the equity pledge agreement or create or permit to create any pledges which may have an adverse effect on the rights or benefits of Huya Technology without Huya Technology’s written consent. If Guangzhou Huya and/or its nominee shareholders breach their contractual obligations under those agreements, Huya Technology, as pledgee, will be entitled to sell the pledged equity interests. ● Power of Attorney Pursuant to the irrevocable power of attorney, Huya Technology is authorized by each of the nominee shareholders as its attorney-in-fact to exercise such nominee shareholders’ rights in Guangzhou Huya, including, without limitation, the power to vote on its behalf on all matters of Guangzhou Huya requiring nominee shareholder approval under PRC laws and regulations and the articles of association of Guangzhou Huya and rights to information relating to all business aspects of Guangzhou Huya. The term of this agreement is ten years and will be automatically extended for one (iii) VIE agreements amongst BaiGuoYuan Technology, Guangzhou BaiGuoYuan and its nominee shareholders The following is a summary of the contractual arrangements entered among BaiGuoYuan Technology, Guangzhou BaiGuoYuan and its nominee shareholders. ● Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement between BaiGuoYuan Technology and Guangzhou BaiGuoYuan, BaiGuoYuan Technology has the exclusive right to provide Guangzhou BaiGuoYuan technology support, business support and consulting services related to the services provided by Guangzhou BaiGuoYuan, the scope of which is to be determined by BaiGuoYuan Technology from time to time. BaiGuoYuan Technology owns the exclusive intellectual property rights created as a result of the performance of this agreement. BaiGuoYuan Technology receives substantially all of the economic interest returns generated by Guangzhou BaiGuoYuan. The term of this agreement will not expire unless with BaiGuoYuan Technology's written confirmation to terminate the agreement. ● Exclusive Option Agreement The parties to the exclusive option agreement are BaiGuoYuan Technology, Guangzhou BaiGuoYuan and each of the shareholders of Guangzhou BaiGuoYuan. Under the exclusive option agreement, each of the shareholders of Guangzhou BaiGuoYuan irrevocably granted BaiGuoYuan Technology or its designated representative(s) an exclusive option to purchase, to the extent permitted under the PRC laws, all or part of his or its equity interests in Guangzhou BaiGuoYuan. BaiGuoYuan Technology or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without BaiGuoYuan Technology's prior written consent, Guangzhou BaiGuoYuan's shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou BaiGuoYuan. The term of this agreement is ten years and may be extended at BaiGuoYuan Technology's sole discretion. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (iii) VIE agreements amongst BaiGuoYuan Technology, Guangzhou BaiGuoYuan and its nominee shareholders (continued) ● Powers of Attorney Pursuant to the irrevocable power of attorney executed by each shareholder of Guangzhou BaiGuoYuan, each such shareholder appointed BaiGuoYuan Technology as its attorney-in-fact to exercise such shareholders' rights in Guangzhou BaiGuoYuan, including, without limitation, the power to vote on its behalf on all matters of Guangzhou BaiGuoYuan requiring shareholders' approval under the PRC laws and regulations and the articles of association of Guangzhou BaiGuoYuan. Each power of attorney will remain in force until the shareholder ceases to hold any equity interest in Guangzhou BaiGuoYuan. ● Share Pledge Agreement Pursuant to the share pledge agreement between BaiGuoYuan Technology and the shareholders of Guangzhou BaiGuoYuan, the shareholders of Guangzhou BaiGuoYuan have pledged all of their equity interests in Guangzhou BaiGuoYuan to BaiGuoYuan Technology to guarantee the performance by Guangzhou BaiGuoYuan and its shareholders' performance of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement and powers of attorney. If Guangzhou BaiGuoYuan and/or its shareholders breach their contractual obligations under those agreements, BaiGuoYuan Technology, as pledgee, will be entitled to voting right and the right to sell the pledged equity interests. Through the aforementioned contractual agreements, Guangzhou Huaduo, Guangzhou Huya and Guangzhou BaiGuoYuan are considered VIEs in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) because the Company, through Beijing Huanju Shidai, Huya Technology and BaiGuoYuan Technology, respectively, has the ability to: ● exercise effective control over Guangzhou Huaduo, Guangzhou Huya and Guangzhou BaiGuoYuan; ● receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from these VIEs as if it were their sole shareholder; and ● have an exclusive option to purchase all of the equity interests in these VIEs. In addition to the aforementioned contractual agreements, Beijing Huanju Shidai also entered into similar contractual agreements with Beijing Tuda Science and Technology Co., Ltd. (“Beijing Tuda”). Guangzhou Bilin Changxiang Information Technology Co., Ltd. (“Bilin Changxiang”) and Guangzhou 100 Education Technology Co., Ltd. (“100 Edu Technology”), subsidiaries of the Company, also entered into similar contractual agreements with Guangzhou Bilin Online Information Technology Co., Ltd. (“Bilin Online”) and Guangzhou Sanrenxing 100 Education Technology Co., Ltd. (“Guangzhou Sanrenxing”), respectively. Guangzhou Wangxing Information Technology Co., Ltd. (“Guangzhou Wangxing”) also entered into similar contractual agreements with Chengdu Yunbu Network Technology Co., Ltd. (“Chengdu Yunbu”), Chengdu Luota Network Technology Co., Ltd. (“Chengdu Luota”) and Chengdu Jiyue Network Technology Co., Ltd. (“Chengdu Jiyue”). Through these contractual agreements, Beijing Tuda, Bilin Online, Guangzhou Sanrenxing, Chengdu Yunbu, Chengdu Luota and Chengdu Jiyue are considered VIEs of the Group. In accordance with the aforementioned agreements, the Company has power to direct activities of the VIEs, and can have assets transferred out of the VIEs. Therefore the Company considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves of the VIEs amounting to RMB5,891,302 as of December 31, 2020. As the VIEs were incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the VIEs. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) Currently there is no contractual arrangement that could require the Company to provide additional financial support to the VIEs. As the Company is conducting its PRC internet value-added services business through the VIEs, the Company will, if needed, provide such support on a discretional basis in the future, which could expose the Company to a loss. There is no VIE where the Company has variable interest but is not the primary beneficiary. Please refer to Note 4(a) for the consolidated financial information of the Group’s VIEs as of December 31, 2020. |
Principal accounting policies
Principal accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Principal accounting policies | |
Principal accounting policies | 2. Principal accounting policies (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIEs economic performance, and also the Company’s obligation to absorb losses of the VIEs that could potentially be significant to the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Beijing Huanju Shidai, Bilin Changxiang, Huya Technology, 100 Edu Technology, BaiGuoYuan Technology, Guangzhou Wangxing and ultimately the Company hold all the variable interests of the VIEs and have been determined to be the primary beneficiary of the VIEs. As a result of the share transfer to Tencent on April 3, 2020, the Group no longer consolidate the results of operations of Huya. The Company deconsolidates its subsidiaries or business in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. The Company accounts for the deconsolidation of its subsidiaries or business by recognizing a gain or loss in net income/loss attributable to the Company in accordance with ASC 810. This gain or loss is measured at the date the subsidiaries are deconsolidated as the difference between (a) the aggregate of the fair value of any consideration received, the fair value of any retained non-controlling interest in the subsidiaries being deconsolidated, and the carrying amount of any non-controlling interest in the subsidiaries being deconsolidated, including any accumulated other comprehensive income/loss attributable to the non-controlling interest, and (b) the carrying amount of the assets and liabilities of the subsidiaries being deconsolidated. 2. Principal accounting policies (continued) (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, mezzanine equity and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period in the consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the assessment of whether the Group acts as a principal or an agent in different revenue streams, classification of perpetual items versus consumable items under item-based model, the determination of estimated selling prices of multiple elements revenue contracts, income taxes, allowances for doubtful accounts, determination of share-based compensation expenses, purchase price allocation in a business combination, impairment assessment of goodwill, long-lived assets and intangible assets, tax considerations for earnings retained in the Group’s VIEs, assessment on the probability of performance condition affiliated in equity-classified award under ASC 718 that affect vesting, determination of the fair value of derivative liabilities arising from Huya’s Preferred Shares prior to Huya’s IPO, subsequent adjustment due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, British Virgin Islands, Hong Kong, Singapore, United States, India, Egypt and other regions is United States dollar (“US$”) or their respective local currency, while the functional currency of the other subsidiaries incorporated in PRC is RMB. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ or their respective local currency as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains/losses, net in the consolidated statement of comprehensive income. (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB 6.5250 on December 31, 2020 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; 2. Principal accounting policies (continued) (f) Cash and cash equivalents (continued) ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash, cash equivalents and restricted cash presented on the consolidated statements of cash flows included cash, cash equivalents, restricted cash and restricted cash within restricted short-term deposits in the consolidated balance sheets. (g) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities between three months and one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. (h) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities more than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. (i) Short-term investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. (j) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. 2. Principal accounting policies (continued) (j) Accounts receivable (continued) The Group maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Group determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, Group makes specific bad debt provisions based on any specific knowledge Group has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require Group to use substantial judgment in assessing its collectability. Adoption of Accounting Standards Update (“ASU”) 2016-13 In June 2016, the FASB issued ASU 2016-13: Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The Group adopted ASU 2016-13 from January 1, 2020 using modified-retrospective transition approach with a cumulative-effect adjustment to shareholders’ equity amounting to RMB12.1 million recognized as of January 1, 2020. (k) Financing receivables Financing receivables represent receivables derived from finance business, including micro-credit personal loans and corporate loans. Financing receivables are recorded at amortized cost, reduced by a valuation allowance estimated as of the balance sheet date. The amortized cost is equal to the unpaid principal amount, accrued interest receivables and net deferred origination costs. The origination costs are the direct costs attributable to originating the financing charged by third-party companies. The cash flows related to the principal of finance business are included in the investing activities category in the consolidated statement of cash flows. Micro-credit personal loans The Group provides micro loans to qualified individual borrowers. The micro loan periods granted to the borrowers generally range from one month to twelve months. The Group has ceased to extend credit in our PRC internet micro-financing business since the second half of 2019. Corporate loans The Group provides loans to corporate borrowers mainly through sales-and-leaseback model. Under the sales-and-leaseback arrangement, the Group, who is also the lender, purchases machinery and equipment from lessees, who are also the borrowers, and leases the purchased equipment back to the lessees for a number of years. In a sales-and-leaseback arrangement, the transaction is in substance a collateral financing. Allowance for financing receivables The Group assesses the allowance for financing receivables either on an individual or collective basis. The Group estimates and evaluates the allowance amounts and whether such amounts are adequate to cover potential losses, and periodic reviews are performed to ensure such amounts continue to reflect the best estimate of the losses inherent in the outstanding portfolio of debts. The estimate is based on a pooled basis due to the composition of homogeneous financing with similar size and general credit risk characteristics for similar finance businesses. The Group considers the credit worthiness of the individuals and the companies receiving financing, aging of the outstanding financing receivables, value of the collateral assets and other specific circumstances related to the financing when determining the allowance for financing receivables. 2. Principal accounting policies (continued) (k) Financing receivables (continued) Financing receivables are placed on non-accrual status upon reaching 90 days past due or when reasonable doubt exists in timely collection of the financing receivables. When a financing receivable is placed on non-accrual status, the Group stops accruing financing income. Financing receivable is returned to accrual status if the related individual or company has performed in accordance with the contractual terms for a reasonable period of time and, in the Group’s judgment, will continue to make period principal and financing income payments as scheduled. (l) Investments ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The new guidance requires modified retrospective application to all outstanding instruments beginning January 1, 2018, with a cumulative effect adjustment recorded to opening accumulated deficit as of the beginning of the first period in which the guidance becomes effective. However, changes to the accounting for equity securities without a readily determinable fair value would be applied prospectively. The Group adopted the new financial instruments accounting standard from January 1, 2018. Following the adoption of this guidance, accumulated fair value gain, amounting to RMB87.8 million, was reclassified from accumulated other comprehensive loss to retained earnings as of January 1, 2018. Equity Investments with Readily Determinable Fair Values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Equity Investments without Readily Determinable Fair Values After the adoption of this new accounting standard, the Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. 2. Principal accounting policies (continued) (l) Investments (continued) Available-for-sale debt investments Available-for-sale debt investment of the Group is convertible bond issued by a private company that is redeemable at the Group’s option, which is measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of this debt investment are recognized in other comprehensive income (loss). (m) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Residual Estimated useful lives rate Buildings 40 years 0 % Servers, computers and equipment 3-5 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Decoration of buildings 10 years 0 % Motor vehicles 4 years 0%-5 % Furniture, fixture and office equipment 3-5 years 0%-5 % Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. All direct and indirect costs that are related to the construction of property and equipment and incurred before the assets are ready for their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment items and depreciation of these assets commences when they are ready for their intended use. (n) Business combinations Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. 2. Principal accounting policies (continued) (o) Intangible assets Intangible assets mainly consist of trademark, user bases, non-compete agreement, operating rights, software, domain names, technology, license and others. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Trademark 10 years User bases 3 years License 15 years Non-compete agreement 1 year Operating rights Shorter of the economic life or contract terms Software 1-5 years Domain names 10-15 years Technology 5 years Others Shorter of the economic life or contract terms (p) Land use rights Land use rights are carried at cost less accumulated amortization. Amortization of the land use rights is made on straight-line basis over 40 years from the date when the Group first obtained the land use rights certificate from the local authorities. (q) Impairment of long-lived assets For long-lived assets other than investments and goodwill whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Group tests impairment of long-lived assets at the reporting unit level when impairment indicator appeared and recognizes impairment in the event that the carrying value exceeds the fair value of each reporting unit. The impairment charges of long-lived assets recorded in general and administrative expenses for the years ended December 31, 2018, 2019 and 2020 were amounting to nil, RMB8,408 and nil, respectively. (r) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. 2. Principal accounting policies (continued) (s) Annual test for impairment of goodwill Goodwill assessment for impairment is performed on at least an annual basis in the fourth quarter or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of each reporting unit. (t) Convertible bonds The Group determines the appropriate accounting treatment of its convertible bonds in accordance with the terms in relation to the conversion feature, call and put options, and beneficial conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense, using the effective interest method, from the issuance date to the earliest conversion date. Interest expenses are recognized in the statement of comprehensive income in the period in which they are incurred. 2. Principal accounting policies (continued) (u) Mezzanine equity and non-controlling interests Mezzanine equity For the Company’s majority-owned subsidiaries and consolidated VIEs, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the non-controlling interest is classified as mezzanine equity. In accordance with ASC subtopic 480-10, the Group calculated, on an accumulative basis from the acquisition date, (i) the amount of accretion that would increase the balance of non-controlling interests to their estimated redemption value over the period from the date of acquisition to the earliest redemption date of the non-controlling interests and (ii) the amount of net profit attributable to non-controlling shareholders of certain subsidiaries based on their ownership percentage. The carrying value of the non-controlling interests as mezzanine equity was adjusted by an accumulative amount equal to the higher of (i) and (ii). Each type of increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. Non-controlling interests Non-controlling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholder. (v) Revenue Revenue recognition and significant judgments Revenues from live streaming are mainly generated from Bigo Live, Likee and Hago platforms. Other revenues are mainly generated from online games, membership, online education, advertising and finance business. Disaggregated revenues are disclosed in Note 34 “Segment Reporting”. On January 1, 2018, the Group adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under Topic 605. Based on the Group’s assessment, the adoption of ASC 606 did not result in any adjustment on the Group’s consolidated financial statements, and there were no material differences between the Group’s adoption of ASC 606 and its historic accounting under ASC 605. Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The Group has a recharge system for users to purchase the Group’s virtual currency. Users can recharge via various online payment platforms provided by third parties. Virtual currency is non-refundable and without expiry. As the virtual currency is often consumed soon after it is purchased based on history of turnover, the Group considers the impact of the breakage amount for virtual currency coupons is insignificant. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below unless otherwise stated. 2. Principal accounting policies (continued) (v) Revenue (continued) Revenue recognition and significant judgments (continued) (i) Live streaming Live streaming mainly consists of Bigo Live, Likee and Hago platforms. It generates revenue from sales of virtual items in the platforms. Users can access the platforms and view the live streaming content showed by the performers. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with performers and talent agencies in accordance with their revenue sharing arrangements. Those performers who do not have revenue sharing arrangements with the Group are not entitled to any revenue sharing fee. The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid to performers and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined selling price. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to performers to show support for their favorite performers, or purchase time-based virtual items for one or multiple months for a monthly fee, which provide users with recognized status, such as priority speaking rights or special symbols over a period of time. Accordingly, live streaming revenue is recognized immediately when the consumable virtual item is used, or in the case of time-based virtual items, revenue is recognized ratably over the fixed period on a straight-line basis. The Group does not have further obligations to the user after the virtual items are consumed immediately or after the stated period of time for time-based items. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as the noble member program. Judgments are required as follow: 1) determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together, 2) determining the standalone selling price for each distinct performance obligation, and 3) allocating of the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. Certain virtual items are provided to customers over time and have the same pattern of transfer to customers. The Group exercises judgement in determining the number of distinct performance obligations by accounting for services that have the same pattern of transfer to customers as a single performance obligation. In instances where standalone selling price is not direct |
Certain risks and concentration
Certain risks and concentration | 12 Months Ended |
Dec. 31, 2020 | |
Certain risks and concentration | |
Certain risks and concentration | 4. Certain risks and concentration (a) PRC regulations Foreign ownership of internet-based businesses is subject to significant restrictions under the current PRC laws and regulations. The PRC government regulates internet access, the distribution of online information and the conduct of online commerce through strict business licensing requirements and other government regulations. These laws and regulations also limit foreign ownership in PRC companies that provide internet information distribution services. Specifically, foreign ownership in an internet information provider or other value-added telecommunication service providers may not exceed 50%. Foreigners or foreign invested enterprises are currently not able to apply for the required licenses for operating online games in the PRC. The Company is incorporated in the Cayman Islands and accordingly, the Company is considered as a foreign invested enterprise under PRC law. As mentioned in Note 1(d), in order to comply with the PRC laws restricting foreign ownership in the online business in China, the Group operates the online business in China through contractual arrangements with its principal VIEs, namely Guangzhou Huaduo, Guangzhou Huya and Guangzhou BaiGuoYuan. As of December 31, 2020, Beijing Tuda owns the majority equity interests of Guanghzou Huaduo, and Mr. David Xueling Li owns the majority equity interest of Guangzhou BaiGuoYuan. 4. Certain risks and concentration (continued) (a) PRC regulations (continued) Guangzhou Huaduo, Guangzhou Huya and Guangzhou BaiGuoYuan hold the licenses and permits necessary to conduct its internet value-added services in the PRC. If the Company had direct ownership of the VIE, it would be able to exercise its rights as a shareholder to effect changes in the board of directors, which in turn could affect changes at the management level, subject to any applicable fiduciary obligations. However, under the current contractual arrangements, it relies on the VIE and its shareholders’ performance of their contractual obligations to exercise effective control. In addition, the Group’s contractual agreements have terms range from 10 For the years ended December 31, 2018, 2019 and 2020, the Company’s wholly owned foreign enterprises determined that service fees of RMB201,578, RMB815,463 and RMB1,015,205 were charged to the Group’s VIEs, respectively. Further, the Group believes that the contractual arrangements among Beijing Huanju Shidai, Huya Technology, BaiGuoYuan Technology and Bilin Changxiang, the VIEs, and their shareholders are in compliance with PRC law and are legally enforceable. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIEs were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. 4. Certain risks and concentration (continued) (a) PRC regulations (continued) In March 2019, the National People’s Congress enacted PRC Foreign Investment Law which would be effective starting from January 1, 2020. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment,” which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Existing laws or administrative regulations remain unclear whether the contractual arrangements with variable interest entities will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. However, the possibility that such entities will be deemed as foreign invested enterprise and subject to relevant restrictions in the future shall not be excluded. If VIEs fall within the definition of foreign investment entities, the Group’s ability to use the contractual arrangements with its VIEs and the Group’s ability to conduct business through the VIEs could be severely limited. The Group’s ability to control the VIEs also depends on the power of attorney that the wholly owned subsidiary of the Group has to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Group believes these power of attorney are legally enforceable but may not be as effective as direct equity ownership. In addition, if the Group’s corporate structure and the contractual arrangements with the VIEs through which the Group conducts its business in the PRC were found to be in violation of any existing or future PRC laws and regulations, the Group’s relevant PRC regulatory authorities could: ● revoke or refuse to grant or renew the Group’s business and operating licenses; ● restrict or prohibit related party transactions between the wholly owned subsidiary of the Group and the VIE; ● impose fines, confiscate income or other requirements which the Group may find difficult or impossible to comply with; ● require the Group to alter, discontinue or restrict its operations; ● restrict or prohibit the Group’s ability to finance its operations, and; ● take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIEs, which may result in deconsolidation of the VIEs in the Group’s consolidated financial statements. In the opinion of management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group’s operations depend on the VIEs to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those arrangements. 4. Certain risks and concentration (continued) (a) PRC regulations (continued) The following consolidated financial information of the Group’s VIEs excluding the intercompany items with the Group’s subsidiaries was included in the accompanying consolidated financial statements as of and for the years ended: December 31, 2019 2020 RMB RMB Assets Current assets Cash and cash equivalents 1,589,539 1,620,133 Restricted cash and cash equivalents 3,500 3,497 Short-term deposits 4,000,003 4,370,002 Restricted short-term deposits 650,000 200,000 Short-term investments 3,302,143 1,739,843 Accounts receivable, net 109,222 168,896 Amounts due from related parties 1,707 11,119 Financing receivables, net 74,247 322 Prepayments and other current assets 331,640 362,757 Assets held for sale 2,207,953 330,118 Total current assets 12,269,954 8,806,687 Non-current assets Deferred tax assets 60,461 — Investments 1,496,261 2,491,644 Property and equipment, net 772,619 1,021,111 Land use rights, net 1,736,544 1,688,448 Intangible assets, net 531,438 393,096 Right of use asset, net 54,838 42,157 Other non-current assets 174,286 40,135 Assets held for sale 785,220 129,818 Total non-current assets 5,611,667 5,806,409 Total assets 17,881,621 14,613,096 Liabilities Current liabilities Accounts payable 89,708 104,691 Deferred revenue 78,877 111,839 Advances from customers 7,908 191 Income taxes payable 296,032 127,186 Accrued liabilities and other current liabilities 877,942 707,610 Amounts due to related parties 194,336 14,837 Lease liabilities due within one year 28,874 30,682 Short-term loans 270,565 669,048 Liabilities held for sale 3,113,821 1,164,022 Total current liabilities 4,958,063 2,930,106 Non-current liabilities Lease liabilities 26,305 12,935 Deferred revenue 4,988 9,703 Deferred tax liabilities 85,479 70,900 Other non-current liabilities 11,495 — Liabilities held for sale 227,923 28,807 Total non-current liabilities 356,190 122,345 Total liabilities 5,314,253 3,052,451 For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 810,211 1,950,090 2,740,837 Net income (470,666) (352,329) (914,070) 4. Certain risks and concentration (continued) (a) PRC regulations (continued) For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net cash used in operating activities (200,884) (216,489) (510,381) Net cash used in investing activities (1,774,355) (3,768,408) (330,350) Net cash provided by financing activities 3,647 271,852 149,942 (1,971,592) (3,713,045) (690,789) (b) Foreign exchange risk The revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The Group’s oversea operation and investing and financing activities are denominated in U.S. dollars. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. (c) Credit risk Assets that potentially expose the Group to credit risk primarily consist of cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits, short-term investments, accounts receivable, financing receivables, amounts due from related parties and prepayments and other current assets. As of December 31, 2019 and 2020, substantially all of the Group’s cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments were placed with the PRC and international financial institutions. Management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. Nevertheless under the PRC law, it is required that a commercial bank in the PRC that holds third party cash deposits should maintain a certain percentage of total customer deposits taken in a statutory reserve fund for protecting the depositors’ rights over their interests in deposited money. PRC banks are subject to a series of risk control regulatory standards; PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Group believes that it is not exposed to unusual risks as these financial institutions are either PRC banks or international banks with high credit quality. The Group had not experienced any losses on its deposits of cash and cash equivalents and term deposits during the years ended December 31, 2018, 2019 and 2020 and believes that its credit risk to be minimal. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on the payment platforms, game platforms, customers and the ongoing monitoring process of outstanding balances. The Group is exposed to default risk on its financing receivables. The Group conducts credit evaluations of customers in finance business, either on an individual or collective basis. The Group also considers the value of collateral assets when assessing the collectability of certain financing receivables. Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. Amounts due from related parties, prepayments and other current assets are typically unsecured. In evaluating the collectability of the balance, the Group considers many factors, including the related parties and third parties’ repayment history and their credit-worthiness. An allowance for doubtful accounts is made when collection of the full amount is no longer probable. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2020 | |
Business combination | |
Business combination | 5. Business combination (a) Acquisition of Bigo Immediately prior to this acquisition, the Company held 31.7% of equity interest of Bigo, a company which is primarily engaged in the video and audio broadcast business through its live-streaming applications and platforms all over the world. The Company had a contingent redemption right on its investment in Bigo, therefore the interest held by the Company did not meet the definition of in-substance common stock under ASC 323. As the investment in Bigo did not have readily determinable fair value, it was accounted for as an investment at cost less impairments, adjusted by observable price changes. In February 2019, the Group entered into a share purchase agreement with Bigo and its shareholders. Under the agreement, the Group agreed to purchase all outstanding shares of Bigo that were not already owned by the Group. Pursuant to the agreement, the Company paid US $343.1 million in cash and issued 305,127,046 Class A common shares, which were outstanding, and 38,326,579 Class B common shares of the Company to Bigo’s selling shareholders. In addition, the Company has also issued 8,761,450 Class A common shares for future grants to employees as share-based awards. The acquisition was completed on March 4, 2019. The Group believed that the acquisition of Bigo helped the Group create enhanced live streaming content, expand global footprint and offer world-class user experiences for global user community. Upon the completion of the acquisition, Bigo became a wholly-owned subsidiary of the Group. The following table summarizes the components of the purchase consideration transferred based on the closing price of the Company’s common share as of the acquisition date: As of acquisition date RMB Cash 2,300,196 Fair value of common shares issued 7,704,420 Fair value of previously held equity interest in Bigo 5,697,154 Elimination of preexisting amounts due from Bigo 323,002 Total consideration 16,024,772 The fair value of common shares issued above does not include post-acquisition share-based compensation amounting to RMB590,346. Out of the 305,127,046 Class A common shares issued and outstanding, 38,042,760 shares are for the replacement awards to Bigo’s employees to replace their original share-based awards. The post-acquisition share-based compensation of RMB590,346 are share-based compensation subject to continuous employment and will be recognized as share-based compensation expenses over the remaining required service period. Immediately before the acquisition, the amounts due from Bigo to the Company amounted to RMB323,002. This amount due from Bigo was effectively eliminated upon the acquisition. The amount of the preexisting amounts due from Bigo of RMB323,002 was included as part of the consideration. In accordance with ASC 805, the Company’s previously held equity interest in Bigo was re-measured to fair value on the acquisition date, and a re-measurement gain of RMB2,669,334 was recognized as gain on fair value changes of investments. Acquisition-related costs of RMB27,162 was recognized as general and administrative expenses. 5. Business combination (continued) (a) Acquisition of Bigo (continued) The acquisition was accounted for as a business combination. The Group made estimates and judgements in determining the fair value of the assets acquired and liabilities assumed with the assistance from an independent valuation firm. The consideration was allocated on the acquisition date as follows: As of acquisition date Amortization period RMB Net tangible assets acquired: -Cash and cash equivalents, restricted cash and cash equivalents and restricted short-term deposits 643,433 -Accounts receivables 386,517 -Other current assets 52,432 -Property and equipment, net 294,030 -Other non-current assets 174,837 Identifiable intangible assets acquired: -Trademark 2,400,354 10 years -User Base 1,027,191 3 years -Non-compete agreement 81,129 1 year -Others 6,195 Accrued liabilities and other liabilities (1,156,854) Deferred tax liabilities (316,859) Goodwill 12,432,367 Total 16,024,772 The Company estimated the fair value of acquired trademark using the relief from royalty method. The value is estimated as the present value of the after-tax cost savings at an appropriate discount rate. In terms of the fair value of the acquired user base, the excess earnings method was used. The value is estimated as the present value of the revenues calculated at an appropriate discount rate. The Company’s determination of the fair values of acquired trademark and user base acquired involved the use of estimates and assumptions related to revenue growth rates, royalty rates, discount rates and attrition rates. The goodwill was mainly attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and mainly comprised (a) the assembled work force and (b) the expected future growth, enhancing world-class user experiences and expansion in global markets as a result of the synergy resulting from the acquisition. The goodwill recognized was not expected to be deductible for income tax purpose. 5. Business combination (continued) (a) Acquisition of Bigo (continued) Pro forma information of the acquisition The following unaudited pro forma information summarizes the results of operations for the years ended December 31, 2018 and 2019 of the Company as if the acquisition had occurred on January 1, 2018. The unaudited pro forma information includes: (i) amortization associated with estimates for the acquired intangible assets and corresponding deferred tax liability; (ii) recognition of the post-combination share-based compensation; (iii) removal of the transaction costs related to the acquisition; (iv) removal of the remeasurement gain of JOYY’s previously held interests in Bigo; (v) removal of fair value loss on derivative liabilities related to Bigo’s preferred shares; (vi) elimination of transaction between Bigo and the Company and (vii) the associated tax impact on these unaudited pro forma adjustments. The following pro forma financial information is presented for informational purpose only and is not necessarily indicative of the results that would have occurred had the acquisition been completed on January 1, 2018, nor is it indicative of future operating results. For the year ended December 31, 2018 2019 RMB RMB Pro forma net revenues 3,851,927 6,900,638 Pro forma net loss (1,651,288) (3,437,602) The amounts of revenues and earnings of Bigo since the acquisition date are disclosed in Note 34 “Segment Reporting”. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Cash and cash equivalents | 6. Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with original maturities of three months or less. Cash and cash equivalents balance as of December 31, 2019 and 2020 primarily consist of the following currencies: December 31, 2019 December 31, 2020 RMB RMB Amount equivalent Amount equivalent RMB 1,608,999 1,608,999 2,691,718 2,691,718 US$ 140,482 980,029 1,306,404 8,524,157 Others N/A 121,595 N/A 155,389 Total 2,710,623 11,371,264 |
Short-term deposits
Short-term deposits | 12 Months Ended |
Dec. 31, 2020 | |
Short-term deposits | |
Short-term deposits | 7. Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities between three months and one year.The term deposits balance as of December 31, 2019 and 2020 primarily consist of the following currencies: December 31, 2019 December 31, 2020 RMB RMB Amount equivalent Amount equivalent RMB 4,000,003 4,000,003 4,470,002 4,470,002 US$ 864,000 6,027,437 640,000 4,175,937 Total 10,027,440 8,645,939 |
Restricted short-term deposits
Restricted short-term deposits | 12 Months Ended |
Dec. 31, 2020 | |
Restricted short-term deposits | |
Restricted short-term deposits | 8. Restricted short-term deposits As of December 31, 2019, the Group’s restricted short-term deposits were RMB653,034, which was mainly pledged as collateral for the banking facilities of HK$320 million and US$40 million. As of December 31, 2020, the Group’s restricted short-term deposits were RMB205,461 which was mainly pledged as collateral for the banking facilities of RMB200 million. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable, net | |
Accounts receivable, net | 9. Accounts receivable, net December 31, 2019 2020 RMB RMB Accounts receivable, gross 668,406 981,259 Less: allowance for doubtful receivables (64) (48,202) Accounts receivable, net 668,342 933,057 9. Accounts receivable, net (continued) The following table summarizes the details of the Group’s allowance for doubtful accounts: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year (6,856) (7,422) (64) Adoption of ASC326 — — (4,532) Additions charged to general and administrative expenses, net (566) (117) (43,606) Write-off during the year — 7,475 — Balance at the end of the year (7,422) (64) (48,202) |
Financing receivables, net
Financing receivables, net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable, net | |
Accounts receivable, net | 10. Financing receivables, net Financing receivables consist of the following: December 31, 2019 2020 RMB RMB Financing receivables, gross Micro-credit personal loans 194,517 130,311 Corporate loans 226,977 195,944 Total 421,494 326,255 Less: allowance for financing receivables (186,770) (196,489) Financing receivables, net 234,724 129,766 Current portion 105,344 1,122 Non-current portion 129,380 128,644 As of December 31, 2019 and 2020, micro-credit personal loans were not guaranteed. 10. Financing receivables, net (continued) The following table presents the aging of gross financing receivables as of December 31, 2019 and 2020. 1-90 days 91-180 days 181-360 days over 1 year Total Total financing past due past due past due past due past due Current receivables December 31, 2019 Micro-credit personal loans 29,109 26,192 36,999 20,183 112,483 82,034 194,517 Corporate loans — — 195,143 — 195,143 31,834 226,977 29,109 26,192 232,142 20,183 307,626 113,868 421,494 December 31, 2020 Micro-credit personal loans — 24 20,783 109,504 130,311 — 130,311 Corporate loans — — — 195,143 195,143 801 195,944 — 24 20,783 304,647 325,454 801 326,255 The non-accrual financing receivables related to personal loans as of December 31, 2019 and 2020 amounted to RMB83,374 and RMB130,311, respectively, as they were past due for over 90 days. An impairment charge of RMB104 million and RMB4.7 million was recognized in general and administrative expenses for the year ended December 31, 2019 and 2020, respectively. A majority of the Group's corporate loan business was in the form of sale-and-leaseback arrangements, under which the Group purchases equipment from third party companies and lease back the equipment to the sellers. In 2019, one lessee was unable to repay the principal amount of around RMB15 million due in January and was default. Total financial receivable due from the lessee is RMB195 million. The Group has brought certain lawsuits against this lessee to the court, claiming the lessee to repay all the outstanding amount. Upon the date of the issuance of the consolidated financial statements for the year ended December 31, 2019, the court has passed the first instance judgement on all of these lawsuits, which supported the Group's claim and ordered the lessee to repay all the outstanding amounts due to the Group. Furthermore, the Group pledged or preserved additional assets of the lessee or its related entity as collateral. Based on the Group’s assessment on the lessess’ finance condition and the recoverable amount from the collateral, the financial receivable cannot be fully recovered. As a result, an impairment charge of RMB67 million was recognized in general and administrative expenses for the year ended December 31, 2019 against the carrying value of the financing receivables. In 2020, based on the Group’s assessment on the fair value of the pledged assets as of December 31, 2020, no further impairment charge was recognized against the carrying value of the financing receivables for the year ended December 31, 2020. The financing receivable was placed on non-accrual status. The Group has decided not to further develop corporate loan business so as to avoid further potential risk arising from such business. Movement of allowance for financing receivables is as follows: For the year ended December 31, 2019 2020 RMB RMB Balance at the beginning of the year (15,829) (186,770) Adoption of ASC326 — (5,048) Charged to general and administrative expenses for the year (170,941) (4,671) Balance at the end of the year (186,770) (196,489) |
Prepayments and other current a
Prepayments and other current assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments and other current assets | |
Prepayments and other current assets | 11. Prepayments and other current assets December 31, 2019 2020 RMB RMB Interests receivable 155,265 234,923 Value added taxes to be deducted 82,561 126,098 Receivables from payment platforms 66,858 88,954 Employee advances 21,474 24,096 Prepayments and deposits to vendors and content providers 36,719 42,723 Deposits 32,903 36,612 Loans to third parties 83,253 646 Receivables from disposal of investments 19,882 — Others 39,174 117,178 Total 538,089 671,230 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments | |
Investments | 12. Investments December 31, 2019 2020 RMB RMB Equity investments accounted for using the equity method (i) 857,412 5,429,647 Equity investments with readily determinable fair values (ii) 115,926 1,206,899 Equity investments without readily determinable fair values (iii) 1,010,145 1,443,592 Available-for-sale debt investment (iv) — 6,525 Total 1,983,483 8,086,663 (i) Investments have been accounted for under the equity method where the Group has significant influence on these investees and the investments are considered as in-substance common shares. In 2019 and 2020, the Group acquired minority stake of a number of privately-held entities with total consideration of RMB332,201 and RMB597,349, respectively. Increase in the amounts of investments in 2020 was mainly attributable to the Group’s investment in Huya. On April 3, 2020, Huya ceased to be a subsidiary of the Company and the Company recognized its investment in Huya as an equity method investment (Note 3(b)). The Company further disposed of certain equity interest in Huya in August 2020 (Note 1(a)) and also deem-disposed of certain interest of Huya’s equity interest as a result of the vesting of Huya’s share-based awards, resulting in a net gain from the disposal and deem disposal of around RMB1,802 million. 12. Investments (continued) The following tables set forth the summarised financial information of the Group’s equity method investments: December 31, 2019 2020 RMB RMB Current assets 1,456,771 12,710,995 Non-current assets 806,739 1,976,493 Current liabilities 307,199 2,917,594 Non-current liabilities 3,353 279,378 Non-controlling interests 299 — For the year ended December 31, 2018 2019 2020 RMB RMB RMB Revenues 987,592 758,550 9,716,934 Gross profit 852,059 627,241 2,673,976 Net income (loss) 541,500 220,262 162,887 Net income (loss) attributable to the investees 541,500 220,279 162,887 (ii) The Group does not have the ability to exercise significant influence over these investments. Therefore, it has been precluded from applying the equity method of accounting. In 2020, the Group reclassified equity investments without readily determinable fair values of RMB929,965, including fair value gain of RMB813,322 for the year ended December 31, 2020,to equity investments with readily determinable fair values since quoted prices of the investees from active markets could be observed as these investees became listed in 2020. In 2019 and 2020, the Group disposed of an investment with readily determinable fair values, for a cash consideration of RMB141,875 and RMB 17,058, respectively. In 2018, 2019 and 2020, fair value loss of RMB 113,677, fair value gain of RMB21,942 and RMB1,014,918 related to investments with readily determinable fair values were recognized in the consolidated statements of comprehensive income (Note 29), respectively. (iii) Equity securities without readily determinable fair values and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock. In 2019 and 2020, the Group acquired minority preferred shares or ordinary shares of a number of privately-held entities with total consideration of RMB563,530 and RMB655,736, respectively. The ownership interests were less than 20% of the investees’ total equities or the ownership interests redeemable upon condition. These equity investments are not considered as debt securities or equity securities that have readily determinable fair values. Accordingly the Company elected to account for these investments at cost less impairments, adjusted by observable price changes. In 2019, the Group completed the acquisition of the remaining 68.3% of equity interests in Bigo and Bigo became a wholly owned subsidiary of the Group. Therefore, the previously held 31.7% of equity interests in Bigo, which was classified as equity investments without readily determinable fair value, was derecognized. Please refer to Note 5(a) for the acquisition of Bigo. 12. Investments (continued) In 2019 and 2020, the Group partially disposed of an investment without readily determinable fair values, with a consideration of RMB23,761 and RMB140,132, respectively. In 2018, fair value gain of RMB1,601,082 due to the observable price change, were recognized in gain on fair value changes of investments (Note 29). Out of the fair value gain of RMB1,601,082 for the year ended December 31, 2018, fair value gain of RMB356,545 was realized and RMB1,244,537 was unrealized. In 2019, fair value gain of RMB2,657,370 due to the observable price change, were recognized in gain on fair value changes of investments (Note 29), which was mainly due to gain on the fair value change on the investment in Bigo before the Company’s acquisition of Bigo . Out of the fair value gain of RMB2,657,370 for the year ended December 31, 2019, fair value gain of RMB2,676,014 was realized and fair value loss of RMB18,644 was unrealized. In 2020, fair value gain of RMB101,735 due to the observable price change, were recognized in gain on fair value changes of investments (Note 29).Out of the fair value gain of RMB101,735 for the year ended December 31, 2020, fair value gain of RMB108,089 was unrealized and fair value loss of RMB6,354 was realized. The Group assesses the existence of indicators for other-than-temporary impairment of the investments by considering factors including, but not limited to, current economic and market conditions, the operating performance of the entities including current earnings trends and other entity-specific information. In 2018, 2019 and 2020, based on the Group’s assessment, an impairment charge of RMB35,348, RMB62,334 and RMB43,861 was recognized in general and administrative expenses, respectively, against the carrying value of the investments due to significant deterioration in earnings or unexpected changes in business prospects of the investees as compared to the original investment plans. (iv) In 2020, the Group entered into convertible bond agreement to acquire convertible bond issued by a private company with a total consideration of RMB 6,525 . The Group recorded this investment as an available-for-sale debt investment which is measured at fair value since the convertible bond is redeemable at the Group’s option. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Property and equipment, net | |
Property and equipment, net | 13. Property and equipment, net Property and equipment consists of the following: December 31, 2019 2020 RMB RMB Gross carrying amount Servers, computers and equipment 1,309,687 1,968,376 Buildings 867,518 998,916 Construction in progress 333,122 456,027 Decoration of buildings 103,305 103,059 Leasehold improvements 44,522 58,503 Motor vehicles 43,275 43,232 Furniture, fixture and office equipment 30,441 31,241 Total 2,731,870 3,659,354 Less: accumulated depreciation (647,486) (1,038,557) Less: impairment loss (5,300) — Property and equipment, net 2,079,084 2,620,797 Depreciation expense for the years ended December 31, 2018, 2019 and 2020 were RMB65,054, RMB275,741 and RMB535,498, respectively. |
Land use rights, net
Land use rights, net | 12 Months Ended |
Dec. 31, 2020 | |
Land use rights, net | |
Land use rights, net | 14. Land use rights, net Land use rights consist of the following: December 31, 2020 RMB Gross carrying amount 1,924,563 Less: accumulated amortization (236,115) Land use rights, net 1,688,448 Amortization expense for the years ended December 31, 2018, 2019 and 2020 were RMB48,100, RMB48,096 and RMB48,096, respectively. The estimated amortization expenses for each of the following five years are as follows: Amortization expense of land use rights RMB 2021 48,096 2022 48,096 2023 48,096 2024 48,096 2025 48,096 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets, net | |
Intangible assets, net | 15. Intangible assets, net The following table summarizes the Group’s intangible assets: December 31, 2019 2020 RMB RMB Gross carrying amount Trademark 2,497,480 2,348,814 User bases 1,069,668 1,004,681 Non-compete agreement 84,412 78,951 Software 56,053 55,284 Operating rights 46,251 46,251 License 63,428 63,428 Technology 18,237 17,662 Domain names 7,567 7,809 Others 2,158 9,221 Total of gross carrying amount 3,845,254 3,632,101 Less: accumulated amortization Trademark (208,128) (428,357) User bases (366,139) (753,317) Non-compete agreement (70,348) (78,951) Software (46,696) (51,509) Operating rights (45,458) (45,545) License (358) (4,580) Technology (11,916) (11,676) Domain names (2,508) (3,510) Others (91) (757) Total accumulated amortization (751,642) (1,378,202) Less: accumulated impairment (11,353) (7,937) Intangible assets, net 3,082,259 2,245,962 Amortization expense for the years ended December 31, 2018, 2019 and 2020 were RMB12,146, RMB651,147 and RMB708,331, respectively. 15. Intangible assets, net (continued) The estimated amortization expenses for each of the following five years are as follows: Amortization expense of intangible assets RMB 2021 363,432 2022 303,294 2023 301,696 2024 250,664 2025 240,959 The weighted average amortization periods of intangible assets as of December 31, 2019 and 2020 are as below: December 31, 2019 2020 Trademark 10 years 10 years User base 3 years 3 years License 15 years 15 years Non-compete agreement 1 year 1 year Operating rights 2 years 2 years Software 3 years 3 years Domain names 14 years 14 years Technology Not applicable 5 years Others 10 years 10 years |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill | |
Goodwill | 16. Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 are as follows: All other Bigo Total RMB RMB RMB Balance as of December 31, 2018 11,763 — 11,763 Increase in goodwill related to acquisition (i) — 12,432,367 12,432,367 Foreign currency translation adjustments 16 503,046 503,062 Balance as of December 31, 2019 11,779 12,935,413 12,947,192 Increase in goodwill related to acquisition 104,839 — 104,839 Foreign currency translation adjustments (65) (836,810) (836,875) Balance as of December 31, 2020 116,553 12,098,603 12,215,156 (i) The increase in goodwill in 2019 was related to the acquisition of Bigo. Please refer to Note 5(a) for the acquisition of Bigo. The Group performs its annual goodwill impairment test of each reporting unit in the fourth quarter, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results. 16. Goodwill (continued) The Group performed a goodwill impairment analysis in the fourth quarter of 2019 and 2020. When determining the fair value of Bigo reporting unit, the Group used the income approach. The income approach determines fair value based on discounted cash flow models derived from the reporting units’ long-term forecasts which included a five-year future cash flow projection and an estimated terminal value for the impairment analysis of 2020. The discounted cash flow model included a number of significant unobservable inputs. Key assumptions used to determine the estimated fair value include: (a) the future cash flows forecasts including expected revenue growth, (b) an estimated terminal value using a terminal year long-term future growth rate determined based on the growth prospects of the reporting units; and (c) a discount rate that reflects the weighted-average cost of capital adjusted for the relevant risk associated with each reporting unit’s operations and the uncertainty inherent in the Group’s internally developed forecasts. Based on the Group’s assessment, the fair value of Bigo reporting units exceeded their carrying value by around 1% and 10% of the carrying value of the Bigo reporting unit in 2019 and 2020, respectively. Therefore, no impairment for goodwill recognized for the years ended December 31, 2019 and 2020. |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2020 | |
Deferred revenue | |
Deferred revenue | 17. Deferred revenue December 31, 2019 2020 RMB RMB Deferred revenue, current Live streaming 161,868 414,006 Others 30,886 24,663 Total current deferred revenue 192,754 438,669 Deferred revenue, non-current Live streaming 12,685 16,504 Others 4,733 3,933 Total non-current deferred revenue 17,418 20,437 |
Accrued liabilities and other c
Accrued liabilities and other current liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued liabilities and other current liabilities | |
Accrued liabilities and other current liabilities | 18. Accrued liabilities and other current liabilities December 31, 2019 2020 RMB RMB Revenue sharing fees 353,638 779,167 Salaries and welfare 630,730 732,213 Marketing and promotion expenses 625,150 621,571 Value added taxes and other taxes payable 344,387 575,592 Bandwidth costs 203,536 195,652 Payables to merchants 106,814 45,570 Other payable of shares repurchase — 37,033 Deposits from third parties 9,330 13,974 Other payable to content providers 13,614 10,894 Others 133,389 149,319 Total 2,420,588 3,160,985 |
Short-term loans
Short-term loans | 12 Months Ended |
Dec. 31, 2020 | |
Short-term loans | |
Short-term loans | 19. Short-term loans December 31, 2019 2020 RMB RMB Short-term loans 557,203 734,371 The Group entered into agreements with banks, pursuant to which the Group borrowed three loans with total principal amount of HK $320 million and US$39 million (equivalent to RMB557 million) within a banking facility of HK$320 million and US$40 million in 2019, respectively. These loans were all with a maturity of less than one year and the annual interest rates ranged from 2.38% to 3.77%. Short-term deposits of RMB650 million were pledged as collateral for the banking facilities, which were classified as restricted short-term deposits. The Group entered into several agreements with banks, pursuant to which the Group borrowed loans with total principal amount of RMB693 million and US$6.3 million (equivalent to RMB41 million) within a banking facility of RMB546 million and US$95 million in 2020, respectively. These loans were all with a maturity of less than one year and the annual interest rates ranged from 1.36% to 3.90%. Short-term deposits of RMB200 million were pledged as collateral for the banking facilities, which were classified as restricted short-term deposits. |
Convertible bonds
Convertible bonds | 12 Months Ended |
Dec. 31, 2020 | |
Convertible bonds | |
Convertible bonds | 20. Convertible bonds December 31, 2019 2020 RMB RMB Non-current 2025 Convertible Senior Notes 2,646,642 2,679,216 2026 Convertible Senior Notes 2,361,929 2,405,146 Total 5,008,571 5,084,362 On June 19, 2019, the Company issued Convertible Senior Notes due 2025 with principal amount of US$500 million (the “Notes due 2025”) and Convertible Senior Notes due 2026 with principal amount of US$500 million (the “Notes due 2026”) (collective the “Notes”). The Notes due 2025 and Notes due 2026 bear interest at a coupon rate of 0.75% and 1.375% per year, respectively, and both of them are payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2019. The Notes due 2025 will mature on June 15, 2025 and the Notes due 2026 will mature on June 15, 2026. The Notes due 2025 and the Notes due 2026 may be converted, under certain circumstances, based on an initial conversion rate of 10.4271 The Notes due 2025 and Notes due 2026 are not redeemable prior to their maturity date, except that the holders of the Notes (the “Holders”) have a noncontingent option to require the Company to repurchase for cash all or any portion of their Notes on June 15, 2023 and June 15, 2024, respectively. The repurchase price will equal 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. Upon conversion, the Company may deliver ADS, cash, or a combination of ADS and cash at the option of the Company itself. Therefore, the Notes due 2025 and Notes due 2026 contains cash conversion features, which was an equity component and need to be bifurcated from the debt component of the Notes. Determination of the carrying amount of the debt component was based on the fair value of a similar debt instrument excluding the embedded conversion feature, by using discounted cash flow method. The conversion features were recognized by ascribing the difference between the proceeds and the fair value of the debt component in Additional paid-in capital. As a result, the cash conversion version features for the Notes due 2025 and Notes due 2026 were US$364 million and US$324 million after deducting debt issuance costs, respectively. The net proceeds to the Company from the issuance of the Notes due 2025 were US$491 million. Debt issuance costs of the Notes due 2025 were US$9 million. Out of the debt issuance costs, US$7 million was amortized to interest expense from the issuance date (June 19, 2019) to the first put date of the Notes (June 15, 2023) and US$2 million was allocated as deduction to the equity component. The net proceeds to the Company from the issuance of the Notes due 2026 were US$491 million. Debt issuance costs of the Notes due 2026 were US$9 million. Out of the debt issuance costs, US$6 million was amortized to interest expense from the issuance date (June 19, 2019) to the first put date of the Notes (June 15, 2024) and US$3 million was allocated as deduction to the equity component. The value of Notes due 2025 and Notes due 2026 is initially measured by the cash received after deducting the issuance cost and the bifurcation of the conversion features. The Notes due 2025 and Notes due 2026 are subsequently stated at amortized cost. The difference between the principal amount of the Notes due 2025 and Notes due 2026 and the amount of the proceeds allocated to the debt component plus the issuance costs are regarded as a debt discount, which is subsequently amortized through interest expense over the Notes due 2025 and Notes due 2026’s expected life using the interest method, respectively. As of December 31,2019 and 2020, RMB5,008.6 million and RMB5,084.4 million (US$779.2 million) have been accounted for as the value of the convertible bonds in non-current liabilities. Interest expense related to the Notes due 2025 and Notes due 2026 recognized during the years ended December 31, 2019 and 2020 was RMB246,434 and RMB496,767, respectively. 20. Convertible bonds (continued) Concurrently with the issuance of the Notes, the Company purchased a capped call option (“Purchased Call Option”) in the amount of US$77,000, in order to mitigate the potential future economic dilution associated with the conversion of the Notes and to increase the initial conversion price to US$127.9 per ADS. Counterparty agreed to sell to the Company up to approximately 10.4 million ADS, which is the number of ADS initially issuable upon conversion of the Notes in full, at a price of US$95.9 per ADS. The Purchased Call Option will be settled in ADSs and will terminate upon the maturity date of the Notes. Settlement of the Purchased Call Option in ADSs, based on the number of ADSs issued upon conversion of the Notes, on the expiration date would result in the Company receiving shares equivalent to the number of shares issuable by the Company upon conversion of the Notes. In accordance with ASC 815-10-15-83, the Purchased Call Option meets the definition of a derivative instrument. However, the scope exception in accordance with ASC 815-10-15-74 applies to the Purchased Call Option as it is indexed to its own stock, and the Purchased Call Option meets the requirements of ASC 815 and would be classified in stockholders’ equity, therefore, the cost paid for Purchased Call Option was accounted for within stockholders’ equity, and subsequent changes in fair value will not be recorded. |
Cost of revenues
Cost of revenues | 12 Months Ended |
Dec. 31, 2020 | |
Cost of revenues | |
Cost of revenues | 21. Cost of revenues For the year ended December 31, 2018 2019 2020 RMB RMB RMB Revenue sharing fees and content costs 287,168 2,118,495 5,601,439 Payment handling costs 17,741 652,458 1,317,205 Bandwidth costs 136,447 706,457 834,146 Salary and welfare 139,221 390,352 707,398 Depreciation and amortization 42,147 204,637 421,272 Technical service fee 33,818 304,499 410,293 Share-based compensation 46,373 41,007 39,910 Other taxes and surcharges 2,766 9,574 10,078 Other costs 20,020 125,179 167,848 Total 725,701 4,552,658 9,509,589 |
Other income
Other income | 12 Months Ended |
Dec. 31, 2020 | |
Other income | |
Other income | 22. Other income For the year ended December 31, 2018 2019 2020 RMB RMB RMB Government grants 10,693 31,226 45,359 Others 1,211 8,080 10,752 Total 11,904 39,306 56,111 |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2020 | |
Income tax | |
Income tax | 23. Income tax (i) Cayman Islands Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) BVI Duowan BVI is exempted from income tax on its foreign-derived income in the BVI. (iii) Hong Kong profits tax Under the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group in Hong Kong are subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong are not subject to any Hong Kong withholding tax. (iv) Singapore The income tax provision of the Group in respect of its international operations in Singapore was calculated at the tax rate of 17% on the assessable profits, based on the existing legislation, interpretations and practices in respect thereof. According to the Development and Expansion Incentive (the “Incentive”) pursuant to the provisions of Part IIIB of the Economic Expansion Incentives (Relief from Income Tax) Act, Chapter 86, corporations engaging in new high-value-added projects, expanding or upgrading their operations, or undertaking incremental activities after their pioneer period may apply for their profits to be taxed at a reduced rate of not less than 5% for an initial period of up to ten years. The total tax relief period for each qualifying project or activity is subject to a maximum of 40 years (inclusive of the post-pioneer relief period previously granted, if applicable). The Group’s Singapore entities provided for income tax are as follows: ● Bigo Singapore applied for the Incentive and received approval in October 2018. Bigo Singapore is entitled to enjoy the beneficial tax rate of 5% as the Incentive for the years 2018 through 2022, and will need to re-apply for the Incentive qualification renewal in 2023. ● Other Singapore entities were subject to 17% income tax for the periods reported. 23. Income tax (continued) (v) PRC The Company’s subsidiaries and VIEs in China are governed by the Enterprise Income Tax Law (“EIT Law”), which became effective on January 1, 2008. Pursuant to the EIT Law and its implementation rules, enterprises in China are generally subject to tax at a statutory rate of 25%. Certified High and New Technology Enterprises (“HNTE”) are entitled to a favorable tax rate of 15%, but need to re-apply every three years. During this three-year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification in any year, the enterprise cannot enjoy the preferential tax rate in that year, and must instead use the regular 25% EIT rate. Enterprises qualified as software enterprises can enjoy an income tax exemption for two years beginning with their first profitable year and a 50% tax reduction to the applicable tax rate for the subsequent three years. An entity that qualifies as a “Key National Software Enterprise” (a “KNSE”) is entitled to a further reduced preferential income tax rate of 10%. Enterprises wishing to enjoy the status of a Software Enterprise or a KNSE must perform a self-assessment each year to ensure they meet the criteria for qualification and file required supporting documents with the tax authorities before adopting the preferential EIT rates. These enterprises will be subject to the tax authorities’ assessment each year as to whether they are entitled to use the relevant preferential EIT treatments. If at any time during the preferential tax treatment years an enterprise uses the preferential EIT rates but the relevant authorities determine that it fails to meet applicable criteria for qualification, the relevant authorities may revoke the enterprise’s Software Enterprise/KNSE status. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its entities registered outside of the PRC should be considered as resident enterprises for the PRC tax purposes. The Group’s principal PRC entities provided for enterprise income tax are as follows: ● Guangzhou Huaduo applied for the renewal of HNTE qualification and received approval in December 2019. Guangzhou Huaduo is entitled to continue to enjoy the beneficial tax rate of 15% as an HNTE for the years 2019 through 2021, and will need to re-apply for HNTE qualification renewal in 2022. ● In 2018, Guangzhou Huanju Shidai was qualified as a KNSE after the relevant government authorities’ assessment and was entitled to a preferential income tax rate of 10% . In 2019, Guangzhou Huanju Shidai is expected to enjoy a reduced tax rate of 10% based on its self-assessment. ● In June 2017, Guangzhou Juhui Information Technology Co., Ltd. was qualified as a Software Enterprise, and started to enjoy the zero preferential tax rate beginning from 2016 and 12.5% preferential tax rate beginning from 2018. ● Huya Technology was qualified as a Software Enterprise and enjoyed the zero preferential tax rate in 2018. In 2019, Huya Technology assessed it is qualified as a KNSE and applied the preferential income tax rate of 10% . ● Guangzhou Huya was qualified as an HNTE in 2018. It is entitled to enjoy the preferential tax rate of 15% for three years starting from 2018, and will need to apply for HNTE qualification renewal in 2021. ● Guangzhou BaiGuoYuan Network Technology Co., Ltd. was qualified as a Software Enterprise, and started to enjoy the zero preferential tax rate beginning from 2018 and 12.5% preferential tax rate beginning from 2020. 23. Income tax (continued) (v) PRC (continued) ● Guangzhou BaiGuoYuan Information Technology Co., Ltd. was qualified as an HNTE in 2018. It is entitled to enjoy the preferential tax rate of 15% for the years 2018 through 2020, and will need to re-apply for HNTE qualification renewal in 2021. ● Other PRC subsidiaries and VIEs were subject to 25% EIT for the periods reported. According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deducting amount of the qualified research and development expenses have been increased from 50% to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). Qualified subsidiaries and VIEs of the Group claimed the Super Deduction in ascertaining the tax assessable profits for the periods reported. The EIT Law also imposes a withholding income tax of 10% on dividends distributed by an FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between the mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and are subject to the withholding taxes. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends will be re-invested and the remittance of the dividends will be postponed indefinitely. Aggregate undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2019 and 2020 are approximately RMB16,010,167 and RMB17,011,683 respectively. The Group has a plan to indefinitely reinvest its aggregate undistributed earnings and reserves and any future earnings in the PRC for use in the operation and expansion of its business. Accordingly, no deferred tax liability on 10% withholding tax of aggregate undistributed earnings and reserves of the Company’s subsidiaries located in the PRC has been accrued that would be payable upon the distribution of those amounts to the Company as of December 31, 2019 and 2020. 23. Income tax (continued) Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income are as follows: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expenses PRC entities (754,106) (903,740) (1,473,899) Non-PRC entities 1,318,981 177,839 1,591,617 Total 564,875 (725,901) 117,718 Current income tax (expenses) benefit PRC entities (4,592) 32,684 (43,394) Non-PRC entities (48,931) (30,024) (61,738) Total (53,523) 2,660 (105,132) Deferred income tax (expenses) benefit PRC entities 10,288 34,001 (44,075) Non-PRC entities (24,565) 104,447 (43,130) Total (14,277) 138,448 (87,205) Income tax (expenses) benefit PRC entities 5,696 66,685 (87,469) Non-PRC entities (73,496) 74,423 (104,868) Total (67,800) 141,108 (192,337) 23. Income tax (continued) Reconciliation of the differences between statutory tax rate and the effective tax rate The reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax income is as follows: For the year ended December 31, 2018 2019 2020 PRC Statutory income tax rate (25.0) % (25.0) % (25.0) % Effect of tax holiday and preferential tax benefit (7.2) % 23.0 % (169.3) % Effect of different tax rates available to different jurisdictions (i) 51.6 % (60.7) % 357.7 % Permanent differences (ii) (5.0) % 0.2 % (124.8) % Change in valuation allowance (39.3) % 59.6 % (384.5) % Effect of Super Deduction available to the Group 12.9 % (16.5) % 182.5 % Effective income tax rate (12.0) % (19.4) % (163.4) % Per ADS effect of tax holiday (RMB) 4.45 0.52 0.33 Per share effect of tax holiday (RMB) 0.22 0.03 0.02 (i) The effect of different tax rates available to different jurisdictions was mainly due to the re-measurement gain of the previously held equity interest in Bigo on the acquisition date incurred by Duowan BVI whose applicable tax rate is zero for the year ended December 31, 2019. (ii) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. 23. Income tax (continued) Deferred tax assets and liabilities Deferred taxes are measured using the enacted tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2019 and 2020 are as follows: December 31, 2019 2020 RMB RMB Deferred tax assets: Tax loss carried forward 604,949 808,332 Allowance for doubtful receivable, accrued expense and others not currently deductible for tax purposes 158,536 234,696 Deferred revenue 13,841 29,857 Impairment of investment 19,280 23,537 Others 2,479 7,683 Valuation allowance (i) (607,667) (980,388) Amounts offset by deferred tax liabilities (124,307) (123,717) Total deferred tax assets, net 67,111 — Deferred tax liabilities: Related to the fair value changes of investments 50,519 150,841 Related to acquired intangible assets 323,466 239,898 Others 14,961 9,780 Amounts offset by deferred tax assets (124,307) (123,717) Total deferred tax liabilities, net 264,639 276,802 (i) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. 23. Income tax (continued) Deferred tax assets and liabilities (continued) Movement of valuation allowance For the year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at beginning of the year (57,281) (169,179) (607,667) Additions (236,981) (549,900) (584,363) Reversals 125,083 111,412 211,642 Balance at end of the year (169,179) (607,667) (980,388) Tax loss carry forwards As of December 31, 2020, total tax loss carry forwards of the Company’s subsidiaries and VIEs in the PRC amounted to RMB2,248,432, which were mainly generated by non-HNTEs. The tax losses in PRC can be carried forward for five years to offset future taxable profit, and the period was extended to 10 years for entities qualified as HNTEs in 2019 and thereafter. The tax losses of entities in the PRC will expire from 2021 to 2030, if not utilized. The accumulated tax losses of subsidiaries incorporated in Hong Kong, Singapore and other countries, subject to the agreement of the relevant tax authorities, of RMB30,391, RMB2,721,376 and RMB510,456 respectively, are allowed to be carried forward to offset against future taxable profits. Such carry forward of tax losses in Hong Kong and Singapore have no time limit. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. There were no ongoing examinations by tax authorities as of December 31, 2020. |
Mezzanine equity
Mezzanine equity | 12 Months Ended |
Dec. 31, 2020 | |
Mezzanine equity | |
Mezzanine equity | 24. Mezzanine equity On July 10, 2017, Huya issued 22,058,823 shares of redeemable convertible preferred shares (“Series A Preferred Shares”) at a price of US$3.4 per share with total cash consideration of US$75,000 (equivalent to RMB509,730 as of the issuance date). On March 8, 2018, Huya issued 64,488,235 shares of redeemable convertible preferred shares (“Series B-2 Preferred Shares”) for cash consideration of US$461,600 (equivalent to RMB2,919,112 as of the issuance date) to Linen Investment Limited, a wholly owned subsidiary of Tencent Holdings Limited (“Tencent”). As holders of the Series B-2 Preferred Shares who exercise the redemption rights are allowed to request Huya to issue a convertible note if the Huya’s assets or funds legally available for redemption are insufficient, the host contract is considered to be a debt host. As the conversion feature is an equity instrument as it results in conversion of preferred shares into equity shares, this feature is not clearly and closely related to the debt host. In addition, net settlement criteria is met for the conversion right given the holder will receive the greater of a fixed amount or the if-converted value in the occurrence of a liquidation or deemed liquidation. Therefore, Huya determined that conversion feature embedded in the Series B-2 Preferred Shares is required to be bifurcated and accounted for as a derivative liability and measured at fair value at the end of each reporting year prior to the completion of Huya’s IPO. Upon the issuance of Series B-2 Preferred Shares, the conversion features of Series A Preferred Shares was also modified to be the same as Series B-2 Preferred Shares. Therefore, the difference between the fair value of the modified Series A Preferred Shares and the carrying value of Series A Preferred Shares on the modification date was recognized as a deemed dividend against retained earnings, amounting to RMB489,284. The initial recognition of the derivative liabilities for Series A Preferred Shares and Series B-2 Preferred Shares amounted to RMB892 million and the fair value loss on derivative liabilities of RMB2,285,223 was recognized in the consolidated statement of comprehensive income for the year ended December 31, 2018. 24. Mezzanine equity (continued) Prior to the completion of Huya’s IPO, the Group recorded accretion of redemption value in accordance with ASC 480-10. The Group used the interest method to accrete the changes in redemption value over the period from the date of issuance to the earliest redemption date of the redeemable convertible preferred shares. In 2018, the accretion charge of redeemable convertible preferred shares to redemption value was RMB71,628. Upon the completion of Huya’s IPO in May 2018, all the redeemable convertible preferred shares were automatically converted into ordinary share of Huya. The Group derecognized the derivative liability mentioned above and recognized a one-time credit to additional paid-in capital of RMB4,804,947 in shareholders’ equity in the consolidated balance sheets to reflect: 1) the increase in the value of the Group’s equity in Huya resulted from the proceeds from Huya’s IPO amounting to RMB795,073 and 2) conversion of redeemable convertible preferred shares amounting to RMB4,009,874. In 2018, another subsidiary of the Group issued 500,000,000 shares of redeemable convertible preferred shares for cash consideration of US$50,000 (equivalent to RMB345,420 as of the issuance date) to certain third-party investors. The Group classifies the redeemable convertible preferred shares as mezzanine equity and records accretion of redemption value in accordance with ASC 480-10. The Group used the interest method for the changes of redemption value over the period from the date of issuance to the earliest redemption date of the non-controlling interests. Accretion of redeemable convertible preferred shares to redemption value of RMB5,758, RMB34,448 and RMB34,565 was recognized for the years ended December 31, 2018, 2019 and 2020. |
Common shares and treasury shar
Common shares and treasury shares | 12 Months Ended |
Dec. 31, 2020 | |
Common shares and treasury shares | |
Common shares and treasury shares | 25. Common shares and treasury shares During the year ended December 31, 2018, 6,694,940 Class A common shares were issued for the exercised share options, vested restricted shares and restricted share units and 29,800,000 Class B common shares were converted to Class A common shares. As of December 31, 2018, 10,000,000,000 Class A common shares and 1,000,000,000 Class B common shares had been authorized, 981,740,848 Class A common shares and 288,182,976 Class B common shares had been issued outstanding On August 13, 2019, the Company’s board of directors approved a share repurchase programs (the “Share Repurchase Program”), pursuant to which the Company may repurchase from time to time at management’s discretion, at prevailing market prices in the open market in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, up to US$300 million in total of the Company’s outstanding ADSs for a period not to exceed twelve (12) months from the date of approval by board of directors. For the year ended December 31, 2019, the Company had repurchased an aggregate of 434,145 ADSs, representing 8,682,900 Class A common shares at an average price of US$54.6194 per ADS, or US$2.7310 per Class A common share, for aggregate consideration of US$23.7 million. Since the shares repurchased hasn’t been cancelled, the excess of repurchase price over par value was recorded as treasury shares upon the repurchase date. Additionally, in order to lower the average cost of acquiring shares in the ongoing share repurchase program, the Company purchased a capped call option of US$11.7 million for the repurchase of shares. Upon expiration of the option, if the closing market price of the Company’s common share is at or above the pre-determined price (the “Strike Price”), the Company will have its initial investment returned with a premium in either cash or shares at the Company’s election. If the closing market price is below the Strike Price, the Company will receive the number of shares specified in the agreement. As the outcome of these arrangements is based entirely on the Company’s stock price and does not require the Company to deliver either shares or cash, other than the initial investment, the entire transaction is recorded in equity. The agreement was expired in January 2020 and the Company received approximate US$12.2 million (approximately RMB84.8 million) of cash that was recorded in equity. During the year ended December 31, 2019, 6,216,060 Class A common shares were issued for the exercised share options, vested restricted shares and restricted share. 305,127,046 Class A common shares and 38,326,579 Class B common shares were issued to Bigo’s selling shareholders during Bigo’s acquisition. As of December 31, 2019, 10,000,000,000 Class A common shares and 1,000,000,000 Class B common shares had been authorized, 1,301,845,404 Class A common shares and 326,509,555 Class B common shares had been issued, 1,293,162,504 Class A common shares and 326,509,555 Class B common shares were outstanding, respectively. During the year ended December 31, 2020, 12,363,420 Class A common shares were issued for the exercised share options, vested restricted shares and restricted share. The Company also repurchased an aggregate of 1,658,291 ADSs, representing 33,165,820 Class A common shares at an average price of US$69.8407 per ADS or US$3.4920 per Class A common share, for aggregate consideration of US$115.8 million. Since the shares repurchased have not been cancelled, the excess of repurchase price over par value was recorded as treasury shares upon the repurchase date. As of December 31, 2020, 10,000,000,000 Class A common shares and 1,000,000,000 Class B common shares had been authorized, 1,314,208,824 Class A common shares and 326,509,555 Class B common shares had been issued, 1,272,346,218 Class A common shares and 326,509,555 Class B common shares were outstanding, respectively. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation | |
Share-based compensation | 26. Share-based compensation (a) JOYY’s share-based awards (i) Restricted Share Units On September 16, 2011, the board of directors of the Company approved the 2011 Share Incentive Scheme which include share options, restricted share units and restricted shares. In October 2012, the board of directors of the Company resolved that the maximum aggregate number of Class A common shares which may be issued pursuant to all awards under the 2011 Share Incentive Scheme shall be 43,000,000 plus an annual increase of 20,000,000 on the first day of each fiscal year, or such lesser amount of Class A common shares as determined by the board of directors of the Company. During the years ended December 31, 2018, 2019 and 2020, the Company granted restricted share units to employees of 11,977,794, 16,114,095 and 62,770,405, respectively, pursuant to the 2011 Share Incentive Plan. The following table summarizes the restricted share units activity for the years ended December 31, 2018, 2019 and 2020: Weighted Number of average restricted grant-date shares fair value (US$) Outstanding, December 31, 2017 30,874,144 4.4969 Granted 11,977,794 4.7052 Forfeited (5,115,304) 4.6843 Vested (12,507,000) 3.6776 Outstanding, December 31, 2018 25,229,634 4.9639 Granted 16,114,095 3.0005 Forfeited (6,381,786) 4.7840 Vested (7,848,811) 4.7427 Outstanding, December 31, 2019 27,113,132 3.9034 Granted 62,770,405 3.6059 Forfeited (10,312,521) 3.9198 Vested (6,918,126) 4.3045 Outstanding, December 31, 2020 72,652,890 3.6059 Expected to vest as of December 31, 2020 69,119,313 3.5939 For the years ended December 31,2018,2019 and 2020, the Company recorded share-based compensation of RMB197,434, RMB107,977 and RMB325,788 in relation to continuing operations using the graded-vesting attribution method. As of December 31, 2020, total unrecognized compensation expense relating to the restricted share units was RMB1,114,731. The expense is expected to be recognized over a weighted average period of 1.58 years using the graded-vesting attribution method. 26. Share-based compensation (a) JOYY’s share-based awards (continued) (ii) Restricted Shares In connection with the acquisition of Bigo in March 2019, the Group issued common shares to replace Bigo’s share incentive scheme. There are mainly three types of vesting schedule under Bigo’s share incentive scheme, which are: i) 50% of the share-based awards will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, ii) share-based awards will be vested in four equal installments over the following 48 months, and iii) share-based awards will be vested in three equal installments over the following 36 months. After the acquisition, Bigo’s share incentive scheme are replaced by JOYY’s restricted shares of 38,042,760 without change in vesting terms. The post-acquisition share-based compensation expenses are recognized over the remaining vesting period after the acquisition date. In addition, the Company granted additional restricted shares to employees of 4,541,086 during the year ended December 31, 2020. The following table summarizes the restricted shares activity for the years ended December 31, 2018, 2019 and 2020: Weighted Number of average restricted grant-date fair shares value (US$) Outstanding, December 31, 2018 — — Replacement due to acquisition of Bigo 38,042,760 3.6100 Granted 16,041,327 3.4750 Forfeited (7,279,877) 3.6302 Vested (8,599,959) 3.6608 Outstanding, December 31, 2019 38,204,251 3.5267 Granted 4,541,086 3.9739 Forfeited (4,554,972) 3.5287 Vested (11,770,000) 3.6290 Outstanding, December 31, 2020 26,420,365 3.5577 Expected to vest as of December 31, 2020 23,362,211 3.5635 For the year ended December 31, 2019 and 2020, the Company recorded share-based compensation for restricted shares in relation to continuing operations of RMB364,907 and RMB267,962 using the graded-vesting attribution method. As of December 31, 2020, total unrecognized compensation expense relating to the restricted shares was RMB219,226. The expense is expected to be recognized over a weighted average period of 1.69 years using the graded-vesting attribution method. 26. Share-based compensation (continued) (a) JOYY’s share-based awards (continued) (iii) Share options Pre-2009 Scheme Options Before the adoption of the Employee Equity Incentive Scheme (the “2009 Incentive Scheme”), 12,705,700 and 8,499,050 share options were granted to employees through individually signed share option agreements, to acquire common shares of Duowan BVI on a one-to-one basis on January 1, 2008 and 2009 respectively. In addition, on January 1, 2008, 3,832,290 share options were granted to one non-employee for the provision of consulting services to the Group (collectively defined as “Pre-2009 Scheme Options”). The vesting of the Pre-2009 Scheme Options has already been completed before January 1, 2016. As of December 31, 2018, all outstanding, vested and exercisable share options have been exercised. 2011 Share Incentive Scheme Grant of options During the year ended December 31, 2019 and 2020, the Company granted 438,100 and nil share options to employees, pursuant to the 2011 Share Incentive Scheme. Vesting of options There are three types of vesting schedule, which are: i) options will be vested in three equal installments over the following 36 months, ii) 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, and iii) 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in one installments over the following 12 months. Movements in the number of share options granted and their related weighted average exercise prices are as follows: Weighted Weighted average Aggregate average remaining intrinsic Number of exercise contractual life value options price (US$) (years) (US$) Outstanding, January 1, 2018 — — — — Granted 10,934,300 4.7025 Outstanding, December 31, 2018 10,934,300 4.7025 5.29 — Granted 438,100 3.5350 Forfeited (1,065,000) 4.5225 Outstanding, December 31, 2019 10,307,400 3.8069 5.45 — Outstanding, December 31, 2020 10,307,400 3.8069 4.45 — Expected to vest as of December 31, 2020 10,307,400 3.8069 4.45 3,669 Exercisable as of December 31, 2020 3,233,650 4.4016 4.83 387 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. 26. Share-based compensation (continued) (a) JOYY’s share-based awards (continued) (iii) Share options (continued) The aggregate intrinsic value in the table above represents the difference between the Company’s common shares as of December 31, 2019 and 2020 and the exercise price. The total intrinsic value was nil due to the higher exercise price compared to the Company’s common shares as of December 31, 2018 and 2019 and the exercise price. For the year ended December 31, 2018, 2019 and 2020, the Company recorded share-based compensation in relation to continuing operations of RMB22,760, RMB49,154 and RMB38,686 using the graded vesting attribution method. The Company has used binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions are set as below: 2019 Weighted average fair value per option granted 1.7582 Weighted average exercise price 3.5350 Weighted average Risk-free interest rate (1) 1.82 % Expected term (in year) (2) 6 Expected volatility (3) 56 % Dividend yield (4) — (1) The risk-free interest rate of periods within the contractual life of the share option is based on US Treasury Bonds of similar tenor at the valuation dates. (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the Company at the valuation dates. (4) The Company has no history or expectation of paying dividend on its common shares before December 31,2019. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. (b) Other share-based awards For the years ended December 31, 2018, 2019 and 2020, the Company recorded share-based compensation expense of RMB7,940, RMB4,038 and RMB3,540 for other share-based compensation. |
Basic and diluted net income pe
Basic and diluted net income per share | 12 Months Ended |
Dec. 31, 2020 | |
Basic and diluted net income per share | |
Basic and diluted net income per share | 27. Basic and diluted net income per share Basic and diluted net income per share for the years ended December 31, 2018, 2019 and 2020 are calculated as follows: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) from continuing operations attributable to common shareholders of JOYY Inc. 614,630 (582,608) (171,237) Numerator for diluted income (loss) per share from continuing operations 614,630 (582,608) (171,237) Net income from discontinued operations attributable to common shareholders of JOYY Inc. 1,027,328 3,961,938 9,780,143 Incremental dilution from Huya (1) — (14,004) (4,531) Numerator for diluted income per share from discontinued operations 1,641,958 3,365,326 9,604,375 Denominator: Denominator for basic calculation—weighted average number of Class A and Class B common shares outstanding 1,280,847,795 1,544,396,920 1,600,199,759 Dilutive effect of share options 94,254 — — Dilutive effect of restricted share units 12,966,689 — — Denominator for diluted calculation 1,293,908,738 1,544,396,920 1,600,199,759 Basic net income (loss) per Class A and Class B common share 1.28 2.19 6.00 Continuing operations 0.48 (0.38) (0.11) Discontinued operations 0.80 2.57 6.11 Diluted net income (loss) per Class A and Class B common share 1.27 2.18 6.00 Continuing operations 0.48 (0.38) (0.11) Discontinued operations 0.79 2.56 6.11 Basic net income (loss) per ADS* 25.64 43.77 120.10 Continuing operations 9.60 (7.54) (2.14) Discontinued operations 16.04 51.31 122.24 Diluted net income (loss) per ADS* 25.38 43.59 120.04 Continuing operations 9.50 (7.54) (2.14) Discontinued operations 15.88 51.13 122.18 * Each ADS represents 20 common shares. (1) In calculation of diluted net income per share, assuming a dilutive effect, all of Huya’s existing unvested restricted share units and unexercised share options are treated as vested and exercised by Huya under the treasury stock method, causing the decrease percentage of the weighted average number of shares held by the Company in Huya. As a result, Huya’s net income (loss) attributable to the Company on a diluted basis decreased accordingly, which is presented as “incremental dilution from Huya” in the table. For the years ended December 31, 2018, 2019 and 2020, the following shares outstanding were excluded from the calculation of diluted net (loss) income per share, as their inclusion would have been anti-dilutive for the periods prescribed but which could potentially dilute EPS in the future. For the year ended December 31, 2018 2019 2020 Shares issuable upon exercise of share options — 10,307,400 10,307,400 Shares issuable upon exercise of restricted share units — 27,113,132 72,652,890 Shares issuable upon exercise of restricted share — 38,204,251 26,420,365 Shares issuable upon conversion of convertible bonds 180,668 208,542,000 210,568,000 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Related party transactions | 28. Related party transactions The table below sets forth the major related parties and their relationships with the Group: Major related parties Relationship with the Group Guangzhou Sunhongs Corp., Ltd. (“Guangzhou Sunhongs”) (Formerly known as Guangzhou Shanghang Information Technology Co., Ltd.) Significant influence exercised by a principal shareholder of the Company Kingsoft Cloud Holdings Limited Significant influence exercised by a principal shareholder of the Company Xiaomi Corporation (“Xiaomi Group”) Controlled by a principal shareholder of the Company Huya * Investment with significant influence Shanghai Chuangsi Enterprise Development Co., Ltd. (“Shanghai Chuangsi”) Investment with significant influence * Since April 3, 2020, Huya ceased to be a subsidiary of the Group and the Group accounted for the investment in Huya using the equity method. During the years ended December 31, 2018, 2019 and 2020, significant related party transactions are as follows: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Disposal of investments to related parties — — 140,132 Bandwidth service provided by Guangzhou Sunhongs 92,454 92,553 98,364 Promotion expense charged from related parties 57 25,534 17,511 Bandwidth service provided by Kingsoft Cloud 2,106 11,899 14,694 Loan to related parties 188,000 170,000 5,000 Purchase of fixed assets from Kingsoft Cloud — 16,776 2,952 Payments on behalf of related parties, net of repayments (2,543) (12,261) 2,317 Online games revenue shared from related parties 31,366 3,588 — Repayment of loans from related parties 20,000 — — Others 9,626 13,878 5,874 28. Related party transactions (continued) As of December 31, 2019 and 2020, the amounts due from/to related parties are as follows: December 31, 2019 2020 RMB RMB Amounts due from related parties, current Others 1,709 3,986 Amounts due to related parties Due to Shanghai Chuangsi* 176,893 5,962 Due to Kingsoft Cloud 641 1,491 Due to Xiaomi Group 11,513 3,221 Due to Guangzhou Sunhongs 8,931 7,568 Others 7,943 6,699 Total 205,921 24,941 *Other receivables and payables from/to related parties are unsecured and payable on demand. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair value measurements | |
Fair value measurements | 29. Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure 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. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. 29. Fair value measurements (continued) The following table summarizes the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2019 and 2020: As of December 31, 2019 Level 1 Level 2 Total Assets Short-term investments (i) 372,767 2,959,564 3,332,331 Equity investment with readily determinable fair values (ii) 115,926 — 115,926 Derivative – forward exchange contracts — 6,340 6,340 488,693 2,965,904 3,454,597 Liabilities Derivatives – forward exchange contracts — (11,495) (11,495) As of December 31, 2020 Level 1 Level 2 Total Assets Short-term investments (i) 810,237 2,381,101 3,191,338 Equity investment with readily determinable fair values (ii) 1,206,899 — 1,206,899 Derivative - forward exchange contracts — 354 354 2,017,136 2,381,455 4,398,591 Liabilities Derivatives - forward exchange contracts — (44,301) (44,301) (i) Short-term investments represented the investments issued by commercial banks or other financial institutions with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair value is provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. For the instruments whose fair value is estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. (ii) Equity investments with readily determinable fair values are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. 29. Fair value measurements (continued) The following table presents the changes in Level 3 assets for the years ended December 31, 2020: Available-for-sale debt investment — Convertible bond RMB Balance as of January 1, 2020 — Acquisition 6,525 Balance as of December 31, 2020 6,525 Available-for-sale debt investments do not have readily determinable market value, which were categorized as Level 3 in the fair value hierarchy. The Company uses a combination of valuation methodologies, including market and income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees, future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies. Since the convertible bond was acquired at the end of 2020, no significant change in its fair value as of December 31, 2020. Fair value measurement on a non-recurring basis The Company measures investments without readily determinable fair value on a nonrecurring basis when impairment charges and fair value change due to observable price change are recognized. These nonrecurring fair value measurements use significant unobservable inputs (Level 3). The Company uses a combination of valuation methodologies, including market and income approaches based on the Company’s best estimate to determine the fair value of these investments. An observable price change is usually resulting from new rounds of financing of the investees. The Company determines whether the securities offered in new rounds of financing are similar to the equity securities held by the Company by comparing the rights and obligations of the securities. When the securities offered in new rounds of financing are determined to be similar to the securities held by the Company, the Company adjusts the observable price of the similar security to determine the amount that should be recorded as an adjustment in the carrying value of the security to reflect the current fair value of the security held by the Company by using the back-solve method based on the equity allocation model with adoption of some key parameters such as risk-free rate and equity volatility. Inputs used in these methodologies primarily include discount rate, the selection of comparable companies operating in similar businesses and etc. For the years ended December 31, 2018, 2019 and 2020, gain on fair value changes of investment of RMB1,601,082, RMB2,657,370 and RMB101,735 due to the observable price change of the investment without readily determinable fair value. The gain on fair value changes of investment for the year ended December 31, 2019 was mainly due to the fair value change of investment in Bigo before the acquisition of Bigo, was recognized in gain on fair value changes of investments. The Group assesses the existence of indicators for other-than-temporary impairment of the investments by considering factors including, but not limited to, current economic and market conditions, the operating performance of the entities including current earnings trends and other entity-specific information. In 2018, 2019 and 2020, based on the Group’s assessment, an impairment charge of RMB35,348, RMB62,334 and RMB43,861 was recognized in general and administrative expenses, respectively, against the carrying value of the investments due to significant deterioration in earnings or unexpected changes in business prospects of the investees as compared to the original investment plans. Apart from the short-term investments, equity investment measured at fair value through earnings and derivatives, the Company’s other financial instruments principally consist of cash and cash equivalent, short-term deposits, long-term deposits, accounts receivable, financing receivables, other receivables, amounts due to/from related parties, accounts payable, certain accrued expenses and convertible bonds. These financial instruments are recorded at cost which approximates fair value. Available-for-sale debt investments do not have readily determinable market value, which were categorized as Level 3 in the fair value hierarchy. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 30. Commitments and contingencies (a) Operating lease commitments The operating lease commitments as of December 31 2020 as presented below mainly consist of the short-term lease commitments and leases that have not yet commenced but that create significant rights and obligations for the Company, which are not included in operating lease right-of-use assets and lease liabilities. As of December 31, 2020, future minimum payments under non-cancellable operating leases commitments consist of the following: Office rental RMB 2021 9,318 2022 4,707 2023 1,495 2024 and after — 15,520 (b) Capital commitments As of December 31, 2019 and 2020, the Group had outstanding capital commitments totaling to RMB 915,780 and RMB 932,898 , which consisted of capital expenditures related to properties and additional investments in equity investments, respectively. (c) Litigation The Company and certain of its current and former officers and directors were named as defendants in a federal putative securities class action filed in November 2020 alleging that they made material misstatements and omissions in documents filed with the SEC regarding certain of the allegations contained in a short seller report. Up to the date of this report, the Company is not able to make a reliable estimate of the potential loss from the class action, if any. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Dividends. | |
Dividends | 31. Dividends On March 26, 2021, the board of directors declared a dividend of US$0.51 per ADS, or US$0.0255 per common share, for the fourth quarter of 2020, which is expected to be paid on April 30, 2021 to shareholders of record as of the close of business on April 19, 2021. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent events | |
Subsequent events | 32. Subsequent events The transaction to sell YY Live business to Baidu as disclosed in Note 1(a) was substantially completed on February 8, 2021, with certain customary matters remaining to be completed in the near future. The Group is in the process of assessing the financial impact of the transaction. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2020 | |
Restricted net assets | |
Restricted net assets | 33. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiaries and VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries and VIEs in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s subsidiaries and VIEs incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion as calculated under U.S. GAAP amounted to approximately RMB6,111,088 and RMB6,402,960 as of December 31, 2019 and 2020, respectively. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to our shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiaries and VIEs to satisfy any obligations of the Company. The Company performed a test on the restricted net assets of subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets did not exceed 25% of the consolidated net assets of the Company as of December 31, 2020 and the condensed financial information of the Company are not required to be presented. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting | |
Segment Reporting | 34. Segment Reporting Historically, there are two segments in the Group, including YY Live and Huya for the years ended December 31, 2018. Starting from the first quarter of 2019, the segment of “YY Live” was renamed as “YY”. The Company completed the acquisition of Bigo in March 2019, which is a separate segment of the Group. Therefore, there are three segments in the Group for the year ended December 31, 2019. Starting from the second quarter of 2020, the Company deconsolidated Huya and Huya’s historical financial results were reflected in the Company’s consolidated financial statements as discontinued operations accordingly. As a result of the definitive agreements entered into with Baidu on the sale of YY Live, YY Live is represented as discontinued operations. YY segment is renamed as “All other” segment and has been recast to exclude the financial numbers of YY Live. Therefore, there are only one operating segment in the Group for the year ended December 31, 2018, and two segments, including “Bigo” and “All other” for the years ended December 31, 2019 and 2020. As a result, no segment report was presented for the year ended December 31, 2018. The Group currently does not allocate assets to all of its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. 34. Segment Reporting (continued) (a) For the year ended December 31, 2020: Bigo All other Elimination (1) Total RMB RMB RMB RMB Net revenues Live streaming 11,447,221 1,077,604 — 12,524,825 Others 507,062 199,058 — 706,120 Total net revenues 11,954,283 1,276,662 — 13,230,945 Cost of revenues (2) (8,330,271) (1,179,318) — (9,509,589) Gross profit 3,624,012 97,344 — 3,721,356 Operating expenses (2) Research and development expenses (1,343,893) (752,903) — (2,096,796) Sales and marketing expenses (3,078,226) (406,588) — (3,484,814) General and administrative expenses (593,237) (423,307) — (1,016,544) Total operating expenses (5,015,356) (1,582,798) — (6,598,154) Other income 24,848 31,263 — 56,111 Operating loss (1,366,496) (1,454,191) — (2,820,687) Interest expense (54,632) (500,753) 33,370 (522,015) Interest income and investment income 1,058 646,326 (33,370) 614,014 Foreign currency exchange losses, net (115,915) (2,944) — (118,859) Gain on disposal and deemed disposal of investments — 1,897,128 — 1,897,128 Gain on fair value changes of investment — 1,127,714 — 1,127,714 Fair value change on derivatives (1,841) (40,479) — (42,320) Other non-operating expenses (6,257) (11,000) — (17,257) (Loss) income before income tax expenses (1,544,083) 1,661,801 — 117,718 Income tax benefits (expenses) 64,382 (256,719) — (192,337) (Loss) income before share of loss in equity method investments, net of income taxes (1,479,701) 1,405,082 — (74,619) Share of loss in equity method investments, net of income taxes — (51,759) — (51,759) Net (loss) income from continuing operations (1,479,701) 1,353,323 — (126,378) (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total RMB RMB RMB Cost of revenues 28,280 11,630 39,910 Research and development expenses 233,928 61,361 295,289 Sales and marketing expenses 4,855 4,163 9,018 General and administrative expense 230,516 61,243 291,759 34. Segment Reporting (continued) (a) For the year ended December 31, 2019: Bigo All other Elimination (1) Total RMB RMB RMB RMB Net revenues Live streaming 4,561,760 769,030 — 5,330,790 Others 406,556 501,963 — 908,519 Total net revenues 4,968,316 1,270,993 — 6,239,309 Cost of revenues (2) (3,508,480) (1,044,178) — (4,552,658) Gross profit 1,459,836 226,815 — 1,686,651 Operating expenses (2) Research and development expenses (979,153) (654,515) — (1,633,668) Sales and marketing expenses (2,058,805) (735,919) — (2,794,724) General and administrative expenses (331,461) (606,758) — (938,219) Total operating expenses (3,369,419) (1,997,192) — (5,366,611) Gain on disposal of business — 82,699 — 82,699 Other income 9,581 29,725 — 39,306 Operating loss (1,900,002) (1,657,953) — (3,557,955) Interest expense (31,956) (265,513) 30,952 (266,517) Interest income and investment income 2,684 454,899 (30,952) 426,631 Foreign currency exchange gains (losses), net 13,208 (4,569) — 8,639 Gain on fair value changes of investment — 2,679,312 — 2,679,312 Fair value change on derivatives — (16,011) — (16,011) (Loss) income before income tax expenses (1,916,066) 1,190,165 — (725,901) Income tax benefits 136,937 4,171 — 141,108 (Loss) income before share of income in equity method investments, net of income taxes (1,779,129) 1,194,336 — (584,793) Share of income in equity method investments, net of income taxes — 41,315 — 41,315 Net (loss) income from continuing operations (1,779,129) 1,235,651 — (543,478) (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total RMB RMB RMB Cost of revenues 28,250 12,756 41,006 Research and development expenses 300,297 62,144 362,441 Sales and marketing expenses 4,256 744 5,000 General and administrative expense 32,462 85,167 117,629 34. Segment Reporting (continued) (b) The following tables set forth revenues and property and equipment for the Company’s geographic operations: For the years ended December 31, 2018 2019 2020 RMB RMB RMB Revenues: PRC 827,717 2,052,372 2,505,034 Developed countries — 1,437,030 4,211,648 Middle East — 1,267,592 3,293,244 Southeast Asia and others 1,759 1,482,315 3,221,019 Developed countries mainly included the United States of America, Great Britain, Japan, South Korea and Australia, Middle East mainly included Saudi Arabia and other countries located in the region, and Southeast Asia and others mainly included countries located in Southeast Asia and India. As of December 31, 2019 2020 RMB RMB Property and equipment, net: PRC 1,321,640 1,607,248 Non- PRC 757,444 1,013,549 |
Principal accounting policies (
Principal accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Principal accounting policies | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. |
Consolidation | (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIEs economic performance, and also the Company’s obligation to absorb losses of the VIEs that could potentially be significant to the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Beijing Huanju Shidai, Bilin Changxiang, Huya Technology, 100 Edu Technology, BaiGuoYuan Technology, Guangzhou Wangxing and ultimately the Company hold all the variable interests of the VIEs and have been determined to be the primary beneficiary of the VIEs. As a result of the share transfer to Tencent on April 3, 2020, the Group no longer consolidate the results of operations of Huya. The Company deconsolidates its subsidiaries or business in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. The Company accounts for the deconsolidation of its subsidiaries or business by recognizing a gain or loss in net income/loss attributable to the Company in accordance with ASC 810. This gain or loss is measured at the date the subsidiaries are deconsolidated as the difference between (a) the aggregate of the fair value of any consideration received, the fair value of any retained non-controlling interest in the subsidiaries being deconsolidated, and the carrying amount of any non-controlling interest in the subsidiaries being deconsolidated, including any accumulated other comprehensive income/loss attributable to the non-controlling interest, and (b) the carrying amount of the assets and liabilities of the subsidiaries being deconsolidated. |
Use of estimates | (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, mezzanine equity and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period in the consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the assessment of whether the Group acts as a principal or an agent in different revenue streams, classification of perpetual items versus consumable items under item-based model, the determination of estimated selling prices of multiple elements revenue contracts, income taxes, allowances for doubtful accounts, determination of share-based compensation expenses, purchase price allocation in a business combination, impairment assessment of goodwill, long-lived assets and intangible assets, tax considerations for earnings retained in the Group’s VIEs, assessment on the probability of performance condition affiliated in equity-classified award under ASC 718 that affect vesting, determination of the fair value of derivative liabilities arising from Huya’s Preferred Shares prior to Huya’s IPO, subsequent adjustment due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Foreign currency translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, British Virgin Islands, Hong Kong, Singapore, United States, India, Egypt and other regions is United States dollar (“US$”) or their respective local currency, while the functional currency of the other subsidiaries incorporated in PRC is RMB. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ or their respective local currency as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains/losses, net in the consolidated statement of comprehensive income. |
Convenience translation | (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB 6.5250 on December 31, 2020 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; 2. Principal accounting policies (continued) (f) Cash and cash equivalents (continued) ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash, cash equivalents and restricted cash presented on the consolidated statements of cash flows included cash, cash equivalents, restricted cash and restricted cash within restricted short-term deposits in the consolidated balance sheets. |
Short-term deposits | (g) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities between three months and one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. |
Long-term deposits | (h) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities more than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. |
Short-term investments | (i) Short-term investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts receivable | (j) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. 2. Principal accounting policies (continued) (j) Accounts receivable (continued) The Group maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Group determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, Group makes specific bad debt provisions based on any specific knowledge Group has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require Group to use substantial judgment in assessing its collectability. Adoption of Accounting Standards Update (“ASU”) 2016-13 In June 2016, the FASB issued ASU 2016-13: Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The Group adopted ASU 2016-13 from January 1, 2020 using modified-retrospective transition approach with a cumulative-effect adjustment to shareholders’ equity amounting to RMB12.1 million recognized as of January 1, 2020. |
Financing receivables | (k) Financing receivables Financing receivables represent receivables derived from finance business, including micro-credit personal loans and corporate loans. Financing receivables are recorded at amortized cost, reduced by a valuation allowance estimated as of the balance sheet date. The amortized cost is equal to the unpaid principal amount, accrued interest receivables and net deferred origination costs. The origination costs are the direct costs attributable to originating the financing charged by third-party companies. The cash flows related to the principal of finance business are included in the investing activities category in the consolidated statement of cash flows. Micro-credit personal loans The Group provides micro loans to qualified individual borrowers. The micro loan periods granted to the borrowers generally range from one month to twelve months. The Group has ceased to extend credit in our PRC internet micro-financing business since the second half of 2019. Corporate loans The Group provides loans to corporate borrowers mainly through sales-and-leaseback model. Under the sales-and-leaseback arrangement, the Group, who is also the lender, purchases machinery and equipment from lessees, who are also the borrowers, and leases the purchased equipment back to the lessees for a number of years. In a sales-and-leaseback arrangement, the transaction is in substance a collateral financing. Allowance for financing receivables The Group assesses the allowance for financing receivables either on an individual or collective basis. The Group estimates and evaluates the allowance amounts and whether such amounts are adequate to cover potential losses, and periodic reviews are performed to ensure such amounts continue to reflect the best estimate of the losses inherent in the outstanding portfolio of debts. The estimate is based on a pooled basis due to the composition of homogeneous financing with similar size and general credit risk characteristics for similar finance businesses. The Group considers the credit worthiness of the individuals and the companies receiving financing, aging of the outstanding financing receivables, value of the collateral assets and other specific circumstances related to the financing when determining the allowance for financing receivables. 2. Principal accounting policies (continued) (k) Financing receivables (continued) Financing receivables are placed on non-accrual status upon reaching 90 days past due or when reasonable doubt exists in timely collection of the financing receivables. When a financing receivable is placed on non-accrual status, the Group stops accruing financing income. Financing receivable is returned to accrual status if the related individual or company has performed in accordance with the contractual terms for a reasonable period of time and, in the Group’s judgment, will continue to make period principal and financing income payments as scheduled. |
Investments | (l) Investments ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The new guidance requires modified retrospective application to all outstanding instruments beginning January 1, 2018, with a cumulative effect adjustment recorded to opening accumulated deficit as of the beginning of the first period in which the guidance becomes effective. However, changes to the accounting for equity securities without a readily determinable fair value would be applied prospectively. The Group adopted the new financial instruments accounting standard from January 1, 2018. Following the adoption of this guidance, accumulated fair value gain, amounting to RMB87.8 million, was reclassified from accumulated other comprehensive loss to retained earnings as of January 1, 2018. Equity Investments with Readily Determinable Fair Values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Equity Investments without Readily Determinable Fair Values After the adoption of this new accounting standard, the Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. 2. Principal accounting policies (continued) (l) Investments (continued) Available-for-sale debt investments Available-for-sale debt investment of the Group is convertible bond issued by a private company that is redeemable at the Group’s option, which is measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of this debt investment are recognized in other comprehensive income (loss). |
Property and equipment | (m) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Residual Estimated useful lives rate Buildings 40 years 0 % Servers, computers and equipment 3-5 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Decoration of buildings 10 years 0 % Motor vehicles 4 years 0%-5 % Furniture, fixture and office equipment 3-5 years 0%-5 % Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. All direct and indirect costs that are related to the construction of property and equipment and incurred before the assets are ready for their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment items and depreciation of these assets commences when they are ready for their intended use. |
Business combinations | (n) Business combinations Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. |
Intangible assets | (o) Intangible assets Intangible assets mainly consist of trademark, user bases, non-compete agreement, operating rights, software, domain names, technology, license and others. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Trademark 10 years User bases 3 years License 15 years Non-compete agreement 1 year Operating rights Shorter of the economic life or contract terms Software 1-5 years Domain names 10-15 years Technology 5 years Others Shorter of the economic life or contract terms |
Land use rights | (p) Land use rights Land use rights are carried at cost less accumulated amortization. Amortization of the land use rights is made on straight-line basis over 40 years from the date when the Group first obtained the land use rights certificate from the local authorities. |
Impairment of long-lived assets | (q) Impairment of long-lived assets For long-lived assets other than investments and goodwill whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Group tests impairment of long-lived assets at the reporting unit level when impairment indicator appeared and recognizes impairment in the event that the carrying value exceeds the fair value of each reporting unit. The impairment charges of long-lived assets recorded in general and administrative expenses for the years ended December 31, 2018, 2019 and 2020 were amounting to nil, RMB8,408 and nil, respectively. |
Goodwill | (r) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. |
Annual test for impairment of goodwill | (s) Annual test for impairment of goodwill Goodwill assessment for impairment is performed on at least an annual basis in the fourth quarter or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of each reporting unit. |
Convertible bonds | (t) Convertible bonds The Group determines the appropriate accounting treatment of its convertible bonds in accordance with the terms in relation to the conversion feature, call and put options, and beneficial conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense, using the effective interest method, from the issuance date to the earliest conversion date. Interest expenses are recognized in the statement of comprehensive income in the period in which they are incurred. |
Mezzanine equity and non-controlling interest | (u) Mezzanine equity and non-controlling interests Mezzanine equity For the Company’s majority-owned subsidiaries and consolidated VIEs, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the non-controlling interest is classified as mezzanine equity. In accordance with ASC subtopic 480-10, the Group calculated, on an accumulative basis from the acquisition date, (i) the amount of accretion that would increase the balance of non-controlling interests to their estimated redemption value over the period from the date of acquisition to the earliest redemption date of the non-controlling interests and (ii) the amount of net profit attributable to non-controlling shareholders of certain subsidiaries based on their ownership percentage. The carrying value of the non-controlling interests as mezzanine equity was adjusted by an accumulative amount equal to the higher of (i) and (ii). Each type of increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. Non-controlling interests Non-controlling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholder. |
Revenue | (v) Revenue Revenue recognition and significant judgments Revenues from live streaming are mainly generated from Bigo Live, Likee and Hago platforms. Other revenues are mainly generated from online games, membership, online education, advertising and finance business. Disaggregated revenues are disclosed in Note 34 “Segment Reporting”. On January 1, 2018, the Group adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under Topic 605. Based on the Group’s assessment, the adoption of ASC 606 did not result in any adjustment on the Group’s consolidated financial statements, and there were no material differences between the Group’s adoption of ASC 606 and its historic accounting under ASC 605. Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The Group has a recharge system for users to purchase the Group’s virtual currency. Users can recharge via various online payment platforms provided by third parties. Virtual currency is non-refundable and without expiry. As the virtual currency is often consumed soon after it is purchased based on history of turnover, the Group considers the impact of the breakage amount for virtual currency coupons is insignificant. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below unless otherwise stated. 2. Principal accounting policies (continued) (v) Revenue (continued) Revenue recognition and significant judgments (continued) (i) Live streaming Live streaming mainly consists of Bigo Live, Likee and Hago platforms. It generates revenue from sales of virtual items in the platforms. Users can access the platforms and view the live streaming content showed by the performers. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with performers and talent agencies in accordance with their revenue sharing arrangements. Those performers who do not have revenue sharing arrangements with the Group are not entitled to any revenue sharing fee. The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid to performers and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined selling price. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to performers to show support for their favorite performers, or purchase time-based virtual items for one or multiple months for a monthly fee, which provide users with recognized status, such as priority speaking rights or special symbols over a period of time. Accordingly, live streaming revenue is recognized immediately when the consumable virtual item is used, or in the case of time-based virtual items, revenue is recognized ratably over the fixed period on a straight-line basis. The Group does not have further obligations to the user after the virtual items are consumed immediately or after the stated period of time for time-based items. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as the noble member program. Judgments are required as follow: 1) determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together, 2) determining the standalone selling price for each distinct performance obligation, and 3) allocating of the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. Certain virtual items are provided to customers over time and have the same pattern of transfer to customers. The Group exercises judgement in determining the number of distinct performance obligations by accounting for services that have the same pattern of transfer to customers as a single performance obligation. In instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. As the Group’s live streaming virtual items are generally sold without right of return and the Group does not provide any other credit and incentive to its users, therefore accounting of variable consideration when estimating the amount of revenue to recognize is not applicable to the Group’s live streaming business. (ii) Others Other revenues mainly generated from online games, membership, online education, advertising and finance business. 2. Principal accounting policies (continued) (v) Revenue (continued) Revenue recognition and significant judgments (continued) (ii) Others (continued) (1) Online games revenues The Group generates revenues from offering virtual items in online games developed by third parties or the Group itself to game players. Historically, the majority of online games revenues for the years ended December 31, 2018, 2019 and 2020 were derived from third parties developed games. Users play games through the Group’s platform free of charge and are charged for purchases of virtual items, including consumable and perpetual items, which can be utilized in the online games to enhance their game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online games. Pursuant to contracts signed between the Group and the respective game developers, game developers own the games’ copyrights and other intellectual property, and take primary responsibilities of game development and game operation, including designing, developing and updating of the games related to game content, pricing of virtual items, providing ongoing updates of new contents and bug fixing. The Group’s responsibilities under the agreements with the game developers to offer certain standard promotions that include providing access to the platform, announcing the new games to users on the platform, and occasional advertising on the Group’s platforms. Therefore, revenues derived from third party developed games are recorded on a net basis, net of the amount paid to game developers. Given that third party developed games are managed and administered by the third party game developers, the Group does not have access to the data on the consumption details such as when the game token is spent on the virtual items or the types of virtual items (consumable or perpetual items) purchased by each individual game player. However, the Group maintains historical data on timing of the conversion of its virtual currency into game specific tokens and the amount of purchases of game tokens. The Group believes that its responsibility to the game developers correspond to the game developers’ services to the users. The Group has adopted a policy to recognize revenues relating to game tokens for third party developed games over the estimated user relationship period with the Group on a game-by-game basis, which is approximately one to six months for the periods presented. Future usage patterns may differ from historical usage patterns and therefore the estimated user relationship period with the Group may change in the future. The estimated user relationship period is based on data collected from those users who have acquired game tokens. To estimate the user relationship period, the Group maintains a system that captures the following information for each user: (a) the frequency that users log into each game via the Group’s platform, and (b) the amount and the timing of when the users convert or charge his or her game tokens. The Group estimates the user relationship period for a particular game to be the date a player purchases or converts from virtual currency to a game token through the date the Group estimates the user plays the game for the last time. This computation is performed on a user by user basis. Then, the results for all analyzed users are averaged to determine an estimated end user relationship period for each game. Revenues from in-game payments of each month are recognized over the user relationship period estimated for that game. The consideration of user relationship period with each online game is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. The Group assesses the estimated user relationship period for each game on a quarterly basis. Any adjustments arising from changes in the user relationship period as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections. 2. Principal accounting policies (continued) (v) Revenue (continued) Revenue recognition and significant judgments (continued) (ii) Others (continued) (2) Membership The Group operates a membership subscription program where subscription members can have enhanced user privileges. The membership fee is collected up-front from subscribers. The receipt of the revenue is initially recorded as deferred revenue and revenue is recognized ratably over the period of the subscription when services are rendered. Unrecognized portion beyond 12 months from balance sheet date is classified as long-term deferred revenue. (3) Online education revenues Educational programs and services consist of vocational training, language training courses and K-12 afterschool education courses. The course fee is generally paid in advance and is initially recorded as deferred revenue. Revenue for regular courses is recognized proportionately as the classes are attended, and is reported net of scholarships and course fee refunds. Students are entitled to one trial class of the purchased course and course fee is fully refundable if a student decides not to take the remaining course after the trial class. No refund will be provided to a student who withdraws from a course after the trial period, and revenue is recognized for the amount collected. Course fee refunds were insignificant over the period presented. In addition to regular courses, the Group also provides a package of several regular courses to students, which has individual fair value in the market. Pursuant to the applicable accounting guidance, the Group has accounted for these course packages as a multiple-element arrangement because each individual course qualifies as a single unit of accounting, and allocated the course fee from the course package to each individual course in the package based on its standalone selling price. The Group recognizes revenue equal to the fair value allocated to individual courses proportionately as the classes are attended. Students are granted a right to retake the courses at a substantial discount in the circumstances where the students fail to achieve certain score targets for some specific courses. The discount arrangement has a stand-alone value and qualifies as a separate unit of accounting under U.S. GAAP. Therefore, the Group has accounted for those courses as a multiple-element arrangement and allocated a portion of the initial course fee to the substantial discount based on a breakage rate. The breakage rate is determined based on our historical data. The amount allocated to the substantial discount is deferred and recognized as revenue upon the expiration of the retaking right, which is generally six months after the end of the initial course term. The Group also sells pre-paid cards primarily to distributors. Pre-paid card sales represent prepaid service fees received from students for online courses. The prepaid service fee is recorded as deferred revenue upon receiving the upfront cash payment. Revenue is recognized on a gross basis based on the selling price of the distributors to the students and is recognized over the period the online course is available to the students, which generally is from the enrolment date to the completion of the relevant professional examination date. (4) Advertising revenues The Group primarily generates advertising revenues from sales of various forms of advertising and provision of promotion campaigns on the live streaming platforms by way of advertisement display or integrated promotion activities in shows and programs on the live streaming platforms. Advertisements on the Group’s platforms are generally charged on the basis of duration, and advertising contracts are signed to establish the fixed price and the advertising services to be provided. Where collectability is reasonably assured, advertising revenues from advertising contracts are recognized ratably over the contract period of display. 2. Principal accounting policies (continued) (v) Revenue (continued) Revenue recognition and significant judgments (continued) (ii) Others (continued) (4) Advertising revenues (continued) The Group enters into advertising contracts directly with advertisers or third-party advertising agencies that represent advertisers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 1 to 3 months. Both third-party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. In instances where the timing of revenue recognition differs from the timing of billing, the Group has determined the advertising contracts generally do not include a significant financing component. The primary purpose of the credits terms is to provide customers with simplified and predictable ways of purchasing the Group’s advertising services, not to receive financing from its customers or to provide customers with financing. Certain customers may receive sales incentives in the forms of discounts and rebates to advertisers or advertising agencies based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. The Group believes that there will not be significant changes to the estimates of variable consideration. (5) Financing revenues The Group generates revenues from micro-credit personal loans provided to individual borrowers and corporate loans to corporate customers. The Group recognizes financing income related to those services over the life of the underlying financing using the effective interest method on unpaid principal amounts after net of loan origination cost. The Group does not accrue financing revenues when financing receivables is placed on non-accrual status. Financing revenues will be recognized when cash is received on a cash basis cost recovery method by applying first to reduce principal and then to interests thereafter. Contract balances The Group collects accounts receivable from various online payment platforms, distribution platforms and advertising customers. The allowance for doubtful accounts reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The Group determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. The activity in the allowance for doubtful accounts for the periods presented is disclosed and detailed in Note 9. The opening balance of accounts receivable was RMB148,423 as of January 1, 2019. As of December 31, 2019 and 2020, accounts receivable were RMB668,342 and RMB933,057, respectively. During the years ended December 31, 2018, 2019 and 2020, the Group recognized an addition of RMB566, an addition of RMB117 and an addition of RMB43,606 of allowance for accounts receivable, respectively. Contract liabilities primarily consists of deferred revenue for unconsumed virtual items and unamortized revenue from virtual items in the Group’s platforms, where there is still an obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met. The opening balance of deferred revenue related to live streaming business as of January 1, 2019 was RMB4,779. As of December 31, 2019 and 2020, deferred revenue related to live streaming business were RMB174,553 and RMB430,510, respectively. During the years ended December 31, 2019 and 2020, the Group recognized revenue of live streaming business amounted to RMB4,779 and RMB161,868, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. 2. Principal accounting policies (continued) (v) Revenue (continued) Contract balances (continued) The opening balance of deferred revenue related to other revenue as of January 1, 2019 was RMB56,966. As of December 31, 2019 and 2020, deferred revenue related to other revenue were RMB35,619 and RMB28,596, respectively. During the years ended December 31, 2019 and 2020, the Group recognized revenue of other revenue amounted to RMB52,233 and RMB30,886, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. During the years ended December 31, 2018, 2019 and 2020, the Group does not have any arrangement where the performance obligations have already been satisfied in the past year, but the corresponding revenue is recognized in a later year. As of December 31, 2020, the aggregate amount of the transaction price allocated to the remaining performance obligation is RMB459,106, the Group expects to recognize RMB438,669 performance obligation as revenue in 2021, the remaining performance obligation is expected to be recognized as revenue in 2022 and after years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term. |
Advances from customers and deferred revenue | (w) Advances from customers and deferred revenue Advances from customers primarily consist of prepayments from users in the form of the Group’s virtual currency that are not yet consumed or converted into tokens, and upon the consumption or conversion, are recognized as revenue according to the prescribed revenue recognition policies described above. Deferred revenue primarily consists of the unamortized game tokens, prepaid subscriptions under the membership program and unamortized revenue from virtual items in various channels in the Group’s platforms, where there is still an implied obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met. |
Cost of revenues | (x) Cost of revenues Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues primarily consists of (i) revenue sharing fees and content costs, including payments to various channel owners and performers, and content providers, (ii) bandwidth costs, (iii) payment handling costs, (iv) salary and welfare, (v) technical service fee, (vi) depreciation and amortization expense for servers, other equipment and intangibles directly related to operating the platform, (vii) share-based compensation, (viii) other taxes and surcharges, and (ix) other costs. The Group was subject to surcharges of VAT, which are calculated based on 12% of the VAT paid for the years ended December 31, 2018, 2019 and 2020. The Group reported other taxes and surcharges in cost of revenues. Based on the Group’s corporate structure and the contractual arrangements among the Group’s PRC subsidiaries, the Group’s VIEs and their shareholders, the Group is effectively subject to 6%, 9% or 13% VAT and related surcharges on revenues generated by the Group’s subsidiaries based on the Group’s contractual arrangements entered into with the Group’s VIEs. |
Research and development expenses | (y) Research and development expenses Research and development expenses primarily consist of (i) salary and welfare for research and development personnel, (ii) share-based compensation for research and development personnel, (iii) depreciation of office premise and servers utilized by research and development personnel, and (iv) rental expenses. Costs incurred during the research stage are expensed as incurred. Costs incurred in the development stage, prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The Group recognizes internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. The Group has not capitalized any costs related to internal use software during the years ended December 31, 2018, 2019 and 2020, respectively. |
Sales and marketing expenses | (z) Sales and marketing expenses Sales and marketing expenses primarily consist of (i) advertising and market promotion expenses, (ii) amortization of intangible assets from business acquisitions, and (iii) salary and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to approximately RMB437,951, RMB2,139,213 and RMB2,675,242 during the years ended December 31, 2018, 2019 and 2020, respectively. |
General and administrative expenses | (aa)General and administrative expenses General and administrative expenses primarily consist of (i) share-based compensation for management and administrative personnel, (ii) salary and welfare for general and administrative personnel, (iii) impairment charge, and (iv) professional service fees. |
Employee social security and welfare benefits | (bb)Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the accompanying statements of comprehensive income amounted to RMB123,502, RMB295,241 and RMB348,671 for the years ended December 31, 2018, 2019 and 2020, respectively |
Share-based compensation | (cc) Share-based compensation The Group grants stock-based award, such as, but not limited to, share options, restricted shares, restricted share units of the Company, share option, restricted share units and ordinary shares of the Company’s subsidiaries to eligible employees, officers, directors, and non-employee consultants. 2. Principal accounting policies (continued) (cc) Share-based compensation (continued) Awards granted to employees, officers, and directors are initially accounted for as equity-classified awards. The related share-based compensation expenses are measured at the grant date fair value of the award and are recognized using the graded vesting method, net of estimated forfeiture rates, over the requisite service period, which is generally the vesting period. Forfeitures are estimated at the time of grant based on historical forfeiture rates and will be revised in the subsequent periods if actual forfeitures differ from those estimates. The Group also granted share options, restricted shares and restricted share units to non-employees, which are also initially accounted for as equity-classified awards. Awards granted to non-employees are initially measured at fair value on the grant date and periodically remeasured thereafter until the earlier of the performance commitment date or the date the service is completed and recognized over the period the service is provided. Awards are remeasured at each reporting date using the fair value as at each period end until the measurement date, generally when the services are completed and share-based awards are vested. Changes in fair value between the interim reporting dates are recorded in consistent with the method used in recognizing the original compensation costs. For an award with a performance and/or service condition that affects vesting, the performance and/or service condition is not considered in determining the award’s fair value on the grant date. Performance and service conditions should be considered when the Group is estimating the quantity of awards that will vest. Compensation cost will reflect the number of awards that are expected to vest and will be adjusted to reflect those awards that do ultimately vest. The Group recognizes compensation cost for awards with performance conditions if and when the Group concludes that it is probable that the performance condition will be achieved, net of an estimate of pre-vesting forfeitures over the requisite service period. The Group reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts compensation cost based on its probability assessment, unless on certain situations, the Group may not be able to determine that it is probable that a performance condition will be satisfied until the event occurs. ASU 2017-09, Compensation—Stock Compensation (Topic 718), Scope of Modification Accounting, provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the followings are met: - - - The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this ASU 2017-09. The Group adopted these amendments to Subtopic 718-10 and there was no impact on the consolidated financial statements for the years presented. 2. Principal accounting policies (continued) (cc) Share-based compensation (continued) The details of the Group’s share-based awards are disclosed in Note 26. Fair value determination of these share-based awards is summarized as below: (1) Restricted share units In determining the fair value of restricted share units granted, the fair value of the underlying shares of JOYY on the grant dates is applied. The grant date fair value of restricted share units is based on stock price of JOYY in the Nasdaq Global Select Market. (2) Share options In determining the fair value of share options granted, a binomial option-pricing model is applied. The determination of the fair value is affected by the stock price of JOYY in the Nasdaq Global Select Market, as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends. (3) Restricted shares Upon the acquisition of Bigo, Class A common shares are issued for the replacement awards to Bigo's employees to replace their original share-based awards, namely restricted shares. In determining the fair value of restricted share granted to Bigo's employees, the fair value of the underlying shares of JOYY on the grant dates is applied. The grant date fair value of restricted shares is based on stock price of JOYY in the Nasdaq Global Select Market. |
Other income | (dd) Other income Other income primarily consists of government grants which represent cash subsidies received from the PRC government by the Group entities. Government grants are originally recorded as deferred revenue when received upfront. After all of the conditions specified in the grants have been met, the grants are recognized as operating income. |
Leases | (ee) Leases The Group leases facilities in the PRC under non-cancellable operating leases expiring on different dates. On January 1, 2019, the Company adopted ASU No. 2016-02 (Topic 842) "Leases" using the optional transition method. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time by assessing whether the Company has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. The main impact of the adoption of the standard is that assets and liabilities amounting to RMB145.2 million and RMB141.2 million, respectively, are recognized beginning January 1, 2019 for leased office space with terms of more than 12 months. The Company accounts for short-term leases with terms less than 12 months in accordance with ASC 842-20-25-2 to recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The adoption of the standard did not have a significant impact on the Group's consolidated financial statements. Operating leases are included in operating lease right-of-use assets, current lease liabilities and non-current lease liabilities on the consolidated balance sheets. (i) Right-of-use assets Right-of-use assets, which mainly comprise of office lease, are initially measured at the present value of the lease payments. Amortization of the right-of-use assets is made over the lease term on a generally straight-line basis. (ii) Lease liabilities Lease liabilities are lessees' obligations to make the lease payments arising from a lease, measured on a discounted basis. As a lessee, the weighted average remaining lease terms of the right-of-use assets was 1.81 years and the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its incremental borrowing rate. A weighted average incremental borrowing rate of 5.36% was adopted at commencement date in determining the present value of lease payments. For the year ended December 31, 2019, operating lease cost and short-term lease cost were RMB86,526 and RMB26,116, respectively. There were no other lease cost other than operating lease cost and short-term lease cost for the year ended December 31, 2019. For the year ended December 31, 2019, cash paid for operating leases included in operating cash flows was RMB86,042. For the year ended December 31, 2019, lease liabilities arising from obtaining right-of-use assets was RMB79,518. For the year ended December 31, 2020, operating lease cost and short-term lease cost were RMB119,238 and RMB19,539, respectively. There were no other lease cost other than operating lease cost and short-term lease cost for the year ended December 31, 2020. For the year ended December 31, 2020, cash paid for operating leases included in operating cash flows was RMB 109,506. For the year ended December 31, 2020, lease liabilities arising from obtaining right-of-use assets was RMB82,573. 2. Principal accounting policies (continued) (ee) Leases (continued) A maturity analysis of the Company's operating lease liabilities and reconciliation of the undiscounted cash flows to the operating lease liabilities recognized on the consolidated balance sheet was as below: Office rental RMB 2021 102,321 2022 45,979 2023 6,680 2024 and after 6,883 Total undiscounted cash flows 161,863 Less: imputed interest (15,361) Present value of lease liabilities 146,502 |
Income taxes | (ff) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in statement of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statements of comprehensive income. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended December 31, 2018, 2019 and 2020. As of December 31, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. Adoption of ASU 2016-16 In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This standard will require entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of transfer. This standard requires a modified retrospective approach to adoption. The Group adopted ASU 2016-16 from January 1, 2018 using a modified retrospective transition method. There was no material impact to the Company’s consolidated financial statements. |
Statutory reserves | (gg) Statutory reserves The Group’s subsidiaries and VIEs established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Group’s subsidiaries registered as wholly owned foreign enterprises have to make appropriations from its after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”) to reserve funds including general reserve fund, and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the company. Appropriation to the staff bonus and welfare fund is at the company’s discretion. In addition, in accordance with the Company Laws of the PRC, the VIEs of the Company registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. The use of the general reserve fund, statutory surplus fund and discretionary surplus fund are restricted to the offsetting of losses or increasing capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to staff and for the collective welfare of employees. All these reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. During the years ended December 31, 2018, 2019 and 2020, appropriations to general reserve fund and statutory surplus fund amounted to RMB39,007, RMB48,236 and RMB29,589, respectively. |
Related parties | (hh) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Dividends | (ii) Dividends Dividends are recognized when declared. |
Income per share | (jj) Income per share Basic income per share is computed on the basis of the weighted-average number of common shares outstanding during the period under measurement. Diluted income per share is based on the weighted-average number of common shares outstanding and potential common shares. Potential common shares result from the assumed exercise of outstanding share options, restricted shares and restricted share units or other potentially dilutive equity instruments, when they are dilutive under the treasury stock method or the if-converted method. |
Comprehensive income | (kk) Comprehensive income Comprehensive income is defined as the change in equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income is reported in the consolidated statements of comprehensive income. As of December 31, 2019 and 2020, accumulated other comprehensive income/loss of the Group is the foreign currency translation adjustments. |
Segment reporting | (ll) Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews segment results when making decisions about allocating resources and assessing performance of the Group. |
Assets held for sale | (mm) Assets held for sale The Group classifies a long-live asset (disposal group) as held for sale in the period in which all of the following criteria are met: a) Management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); b) The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); c) An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; d) The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph 360-10-45-11; e) The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and f) Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. For a component that meets the criteria of held-for-sale, the historical financial results are reflected in the Group’s consolidated financial statements as discontinued operations. |
Recently issued accounting pronouncements | (nn) Recently issued accounting pronouncements In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes" to remove specific exceptions to the general principles in Topic 740 and to simplify accounting for income taxes. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The standard is effective for the fiscal year beginning January 1, 2022. The Company is currently in the process of evaluating the impact of adopting ASU 2019-12 on its consolidated financial statements and related disclosure. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force). The amendments in this update clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect ASU 2020-01 to have a material impact to the Company’s consolidated financial statements. 2. Principal accounting policies (continued) (nn) Recently issued accounting pronouncements (continued) In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update will be effective for the Company’s fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently in the process of evaluating the impact of adopting ASU 2020-06 on its consolidated financial statements and related disclosure. |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization and principal activities | |
Schedule of details of the principal subsidiaries and VIEs | % of direct Date of or indirect Place of incorporation or economic Name incorporation acquisition ownership Principal activities Principal subsidiaries Duowan Entertainment Corporation (“Duowan BVI”) British Virgin Islands (“BVI”) November 6, 2007 100 % Investment holding Huanju Shidai Technology (Beijing) Co., Ltd. (“Beijing Huanju Shidai”) PRC March 19, 2008 100 % Investment holding Guangzhou Huanju Shidai Information Technology Co., Ltd. (“Guangzhou Huanju Shidai”) PRC December 2, 2010 100 % Software development Engage Capital Partners I, L.P. (“Engage L.P.”) Cayman Islands March 23, 2015 93.5 % Investment Hago Singapore Pte. Ltd. (“Hago Singapore”) Singapore May 7, 2018 100 % Internet value added services Bigo Cayman Islands March 4, 2019 100 % Investment holding Bigo Technology Pte. Ltd. ("Bigo Singapore") Singapore March 4, 2019 100 % Investment holding, operation of live streaming platform Bigo (Hong Kong) Limited ("Bigo HK") Hong Kong March 4, 2019 100 % Investment holding Guangzhou BaiGuoYuan Information Technology Co., Ltd. (“BaiGuoYuan Technology”) PRC March 4, 2019 100 % Software development and provision of information technology services Principal VIEs Guangzhou Huaduo Network Technology Co., Ltd. ("Guangzhou Huaduo") PRC April 11, 2005 100 % Holder of internet content provider licenses and internet value added services Guangzhou BaiGuoYuan Network Technology Co., Ltd. ("Guangzhou BaiGuoYuan") PRC March 4, 2019 100 % Holder of internet content provider licenses and internet value added services |
Principal accounting policies_2
Principal accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Principal accounting policies | |
Schedule of property and equipment estimated useful lives and residual rate | Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Residual Estimated useful lives rate Buildings 40 years 0 % Servers, computers and equipment 3-5 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Decoration of buildings 10 years 0 % Motor vehicles 4 years 0%-5 % Furniture, fixture and office equipment 3-5 years 0%-5 % |
Schedule of amortization of finite-lived intangible assets is computed using the straight-line method over the following estimated useful lives | Intangible assets mainly consist of trademark, user bases, non-compete agreement, operating rights, software, domain names, technology, license and others. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Trademark 10 years User bases 3 years License 15 years Non-compete agreement 1 year Operating rights Shorter of the economic life or contract terms Software 1-5 years Domain names 10-15 years Technology 5 years Others Shorter of the economic life or contract terms |
Schedule of undiscounted cash flows to the operating lease liabilities recognized | A maturity analysis of the Company's operating lease liabilities and reconciliation of the undiscounted cash flows to the operating lease liabilities recognized on the consolidated balance sheet was as below: Office rental RMB 2021 102,321 2022 45,979 2023 6,680 2024 and after 6,883 Total undiscounted cash flows 161,863 Less: imputed interest (15,361) Present value of lease liabilities 146,502 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of reconciliation with net income from discontinued operations | For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net income from discontinued operations of YY Live (Note 3(a)) 3,435,675 3,775,334 3,335,057 Net (loss) income from discontinued operations of Huya (Note 3(b)) (1,937,689) 468,173 6,514,481 Net income from discontinued operations as presented in the consolidated statements of comprehensive income 1,497,986 4,243,507 9,849,538 |
Held for sale | YY Live | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of assets, liabilities, statement of operations and cash flows of discontinued operations which were included in the Group's consolidated financial statements | As of December 31, 2019 2020 RMB RMB Assets Current assets Cash and cash equivalents 69,722 206,191 Short-term investments 70,327 — Accounts receivable, net 6,854 101,004 Prepayments and other current assets 31,641 35,548 Total current assets 178,544 342,743 Non-current assets Deferred tax assets 14,708 34,180 Property and equipment, net 80,590 59,900 Intangible assets, net 52,519 48,042 Other non-current assets 13,174 24,260 Total non-current assets 160,991 166,382 Total assets 339,535 509,125 Liabilities Current liabilities Deferred revenue 355,549 326,702 Advances from customers 91,222 80,761 Income taxes payable 3,459 21,014 Accrued liabilities and other current liabilities 729,715 740,190 Total current liabilities 1,179,945 1,168,667 Non-current liabilities Deferred revenue 58,210 28,807 Total non-current liabilities 58,210 28,807 (a) Disposal of YY Live business (continued) For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues Live streaming 10,073,347 10,721,295 9,664,816 Others 199,349 241,243 285,470 Total net revenues 10,272,696 10,962,538 9,950,286 Cost of revenues (1) (5,357,786) (5,703,255) (5,342,372) Gross profit 4,914,910 5,259,283 4,607,914 Operating expenses (1) Research and development expenses (412,046) (393,100) (362,406) Sales and marketing expenses (498,211) (506,605) (581,091) General and administrative expenses (203,678) (198,450) (152,866) Total operating expenses (1,113,935) (1,098,155) (1,096,363) Other income 67,018 203,408 166,272 Operating income 3,867,993 4,364,536 3,677,823 Interest income and investment income 1,565 2,455 2,899 Income before income tax expenses 3,869,558 4,366,991 3,680,722 Income tax expenses (433,883) (591,657) (345,665) Net income from discontinued operations 3,435,675 3,775,334 3,335,057 Net cash provided by discontinued operating activities 3,909,671 3,857,386 3,306,835 Net cash (used in) provided by discontinued investing activities (27,158) (192,781) 47,139 * (1) For the year ended December 31, 2018 2019 2020 RMB RMB RMB Cost of revenues 17,494 8,655 11,241 Research and development expenses 97,945 56,960 45,861 Sales and marketing expenses 2,473 1,799 1,276 General and administrative expense 75,284 72,914 34,344 |
Held for sale | Huya | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of assets, liabilities, statement of operations and cash flows of discontinued operations which were included in the Group's consolidated financial statements | As of December 31, 2019 2020 RMB RMB Assets Current assets Cash and cash equivalents 1,113,193 — Restricted cash and cash equivalents 1,392 — Short-term deposits 6,743,445 — Short-term investments 2,219,531 — Accounts receivable, net 86,822 — Amounts due from related parties 15,553 — Prepayments and other current assets 401,077 — Total current assets 10,581,013 — Non-current assets Deferred tax assets 45,816 — Investments 379,424 — Property and equipment, net 96,686 — Intangible assets, net 45,085 — Right-of-use assets, net 102,824 — Other non-current assets 104,895 — Total non-current assets 774,730 — Total assets 11,355,743 — Liabilities Current liabilities Accounts payable 3,725 — Deferred revenue 795,005 — Advances from customers 50,961 — Income taxes payable 26,051 — Accrued liabilities and other current 1,522,697 — Amounts due to related parties 16,360 — Lease liabilities due within one year 31,878 — Total current liabilities 2,446,677 — Non-current liabilities Deferred revenue 164,913 — Lease liabilities 70,110 — Total non-current liabilities 235,023 — For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues Live streaming 4,442,845 7,976,214 2,274,490 Others 218,540 398,144 137,458 Total net revenues 4,661,385 8,374,358 2,411,948 Cost of revenues (1) (3,933,647) (6,892,436) (1,938,713) Gross profit 727,738 1,481,922 473,235 Operating expenses (1) Research and development expenses (265,152) (508,714) (156,776) Sales and marketing expenses (187,152) (438,396) (106,568) General and administrative expenses (287,710) (352,824) (145,625) Total operating expenses (740,014) (1,299,934) (408,969) Other income 38,938 79,390 11,327 Operating income 26,662 261,378 75,593 Interest income and investment income 156,549 304,491 85,740 Foreign currency exchange gains (losses), net 51 1,157 (1,425) Gain on fair value changes of investments — — 2,160 Fair value change on derivatives (2,285,223) — — Other non-operating expenses — — (10,010) (Loss) income before income tax expenses (2,101,961) 567,026 152,058 Income tax benefits (expenses) 50,943 (96,078) (37,556) Net (loss) income (2,051,018) 470,948 114,502 Share of income in equity method investments, net of income taxes 113,329 (2,775) (1,013) Gain on disposal, net of tax — — 6,400,992 Net (loss) income from discontinued operations (1,937,689) 468,173 6,514,481 Net cash provided by discontinued operating activities 717,460 1,955,533 136,056 Net cash (used in) provided by discontinued investing activities (4,469,548) (3,684,971) 596,718 Net cash provided by discontinued financing activities 4,126,861 2,123,532 8,591 (1) Share-based compensation was allocated in cost of revenues and operating expenses as follows: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Cost of revenues 10,472 31,593 16,448 Research and development expenses 30,643 86,296 37,041 Sales and marketing expenses 1,832 5,919 2,610 General and administrative expense 183,748 157,936 95,469 |
Certain risks and concentrati_2
Certain risks and concentration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Certain risks and concentration | |
Schedule of consolidated financial information of the Group's VIEs and VIE's subsidiaries excluding the inter company items with the Group's subsidiaries included in the accompanying consolidated financial statements | December 31, 2019 2020 RMB RMB Assets Current assets Cash and cash equivalents 1,589,539 1,620,133 Restricted cash and cash equivalents 3,500 3,497 Short-term deposits 4,000,003 4,370,002 Restricted short-term deposits 650,000 200,000 Short-term investments 3,302,143 1,739,843 Accounts receivable, net 109,222 168,896 Amounts due from related parties 1,707 11,119 Financing receivables, net 74,247 322 Prepayments and other current assets 331,640 362,757 Assets held for sale 2,207,953 330,118 Total current assets 12,269,954 8,806,687 Non-current assets Deferred tax assets 60,461 — Investments 1,496,261 2,491,644 Property and equipment, net 772,619 1,021,111 Land use rights, net 1,736,544 1,688,448 Intangible assets, net 531,438 393,096 Right of use asset, net 54,838 42,157 Other non-current assets 174,286 40,135 Assets held for sale 785,220 129,818 Total non-current assets 5,611,667 5,806,409 Total assets 17,881,621 14,613,096 Liabilities Current liabilities Accounts payable 89,708 104,691 Deferred revenue 78,877 111,839 Advances from customers 7,908 191 Income taxes payable 296,032 127,186 Accrued liabilities and other current liabilities 877,942 707,610 Amounts due to related parties 194,336 14,837 Lease liabilities due within one year 28,874 30,682 Short-term loans 270,565 669,048 Liabilities held for sale 3,113,821 1,164,022 Total current liabilities 4,958,063 2,930,106 Non-current liabilities Lease liabilities 26,305 12,935 Deferred revenue 4,988 9,703 Deferred tax liabilities 85,479 70,900 Other non-current liabilities 11,495 — Liabilities held for sale 227,923 28,807 Total non-current liabilities 356,190 122,345 Total liabilities 5,314,253 3,052,451 For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 810,211 1,950,090 2,740,837 Net income (470,666) (352,329) (914,070) 4. Certain risks and concentration (continued) (a) PRC regulations (continued) For the year ended December 31, 2018 2019 2020 RMB RMB RMB Net cash used in operating activities (200,884) (216,489) (510,381) Net cash used in investing activities (1,774,355) (3,768,408) (330,350) Net cash provided by financing activities 3,647 271,852 149,942 (1,971,592) (3,713,045) (690,789) |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
Summary of components of the purchase consideration transferred | As of acquisition date RMB Cash 2,300,196 Fair value of common shares issued 7,704,420 Fair value of previously held equity interest in Bigo 5,697,154 Elimination of preexisting amounts due from Bigo 323,002 Total consideration 16,024,772 |
Summary of pro forma information | For the year ended December 31, 2018 2019 RMB RMB Pro forma net revenues 3,851,927 6,900,638 Pro forma net loss (1,651,288) (3,437,602) |
Bigo Inc | |
Business Acquisition [Line Items] | |
Summary of fair value of the assets acquired and liabilities assumed allocated on the acquisition date | As of acquisition date Amortization period RMB Net tangible assets acquired: -Cash and cash equivalents, restricted cash and cash equivalents and restricted short-term deposits 643,433 -Accounts receivables 386,517 -Other current assets 52,432 -Property and equipment, net 294,030 -Other non-current assets 174,837 Identifiable intangible assets acquired: -Trademark 2,400,354 10 years -User Base 1,027,191 3 years -Non-compete agreement 81,129 1 year -Others 6,195 Accrued liabilities and other liabilities (1,156,854) Deferred tax liabilities (316,859) Goodwill 12,432,367 Total 16,024,772 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents balance | December 31, 2019 December 31, 2020 RMB RMB Amount equivalent Amount equivalent RMB 1,608,999 1,608,999 2,691,718 2,691,718 US$ 140,482 980,029 1,306,404 8,524,157 Others N/A 121,595 N/A 155,389 Total 2,710,623 11,371,264 |
Short-term deposits (Tables)
Short-term deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term deposits | |
Schedule of Deposit Assets | December 31, 2019 December 31, 2020 RMB RMB Amount equivalent Amount equivalent RMB 4,000,003 4,000,003 4,470,002 4,470,002 US$ 864,000 6,027,437 640,000 4,175,937 Total 10,027,440 8,645,939 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable, net | |
Schedule of accounts receivable, net | December 31, 2019 2020 RMB RMB Accounts receivable, gross 668,406 981,259 Less: allowance for doubtful receivables (64) (48,202) Accounts receivable, net 668,342 933,057 |
Summary of allowance for doubtful accounts | The following table summarizes the details of the Group’s allowance for doubtful accounts: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year (6,856) (7,422) (64) Adoption of ASC326 — — (4,532) Additions charged to general and administrative expenses, net (566) (117) (43,606) Write-off during the year — 7,475 — Balance at the end of the year (7,422) (64) (48,202) |
Financing receivables, net (Tab
Financing receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable, net | |
Schedule of Gross Financing Receivables | Financing receivables consist of the following: December 31, 2019 2020 RMB RMB Financing receivables, gross Micro-credit personal loans 194,517 130,311 Corporate loans 226,977 195,944 Total 421,494 326,255 Less: allowance for financing receivables (186,770) (196,489) Financing receivables, net 234,724 129,766 Current portion 105,344 1,122 Non-current portion 129,380 128,644 |
Past Due Financing Receivables | 1-90 days 91-180 days 181-360 days over 1 year Total Total financing past due past due past due past due past due Current receivables December 31, 2019 Micro-credit personal loans 29,109 26,192 36,999 20,183 112,483 82,034 194,517 Corporate loans — — 195,143 — 195,143 31,834 226,977 29,109 26,192 232,142 20,183 307,626 113,868 421,494 December 31, 2020 Micro-credit personal loans — 24 20,783 109,504 130,311 — 130,311 Corporate loans — — — 195,143 195,143 801 195,944 — 24 20,783 304,647 325,454 801 326,255 |
Allowance for Credit Losses on Financing Receivables | Movement of allowance for financing receivables is as follows: For the year ended December 31, 2019 2020 RMB RMB Balance at the beginning of the year (15,829) (186,770) Adoption of ASC326 — (5,048) Charged to general and administrative expenses for the year (170,941) (4,671) Balance at the end of the year (186,770) (196,489) |
Prepayments and other current_2
Prepayments and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments and other current assets | |
Schedule of prepayments and other current assets | December 31, 2019 2020 RMB RMB Interests receivable 155,265 234,923 Value added taxes to be deducted 82,561 126,098 Receivables from payment platforms 66,858 88,954 Employee advances 21,474 24,096 Prepayments and deposits to vendors and content providers 36,719 42,723 Deposits 32,903 36,612 Loans to third parties 83,253 646 Receivables from disposal of investments 19,882 — Others 39,174 117,178 Total 538,089 671,230 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and equipment, net | |
Schedule of property and equipment | Property and equipment consists of the following: December 31, 2019 2020 RMB RMB Gross carrying amount Servers, computers and equipment 1,309,687 1,968,376 Buildings 867,518 998,916 Construction in progress 333,122 456,027 Decoration of buildings 103,305 103,059 Leasehold improvements 44,522 58,503 Motor vehicles 43,275 43,232 Furniture, fixture and office equipment 30,441 31,241 Total 2,731,870 3,659,354 Less: accumulated depreciation (647,486) (1,038,557) Less: impairment loss (5,300) — Property and equipment, net 2,079,084 2,620,797 |
Land use rights, net (Tables)
Land use rights, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of land use right | Land use rights consist of the following: December 31, 2020 RMB Gross carrying amount 1,924,563 Less: accumulated amortization (236,115) Land use rights, net 1,688,448 |
User Base | |
Schedule of finite-lived intangible assets, future amortization expense | The estimated amortization expenses for each of the following five years are as follows: Amortization expense of land use rights RMB 2021 48,096 2022 48,096 2023 48,096 2024 48,096 2025 48,096 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of group's intangible assets | The following table summarizes the Group’s intangible assets: December 31, 2019 2020 RMB RMB Gross carrying amount Trademark 2,497,480 2,348,814 User bases 1,069,668 1,004,681 Non-compete agreement 84,412 78,951 Software 56,053 55,284 Operating rights 46,251 46,251 License 63,428 63,428 Technology 18,237 17,662 Domain names 7,567 7,809 Others 2,158 9,221 Total of gross carrying amount 3,845,254 3,632,101 Less: accumulated amortization Trademark (208,128) (428,357) User bases (366,139) (753,317) Non-compete agreement (70,348) (78,951) Software (46,696) (51,509) Operating rights (45,458) (45,545) License (358) (4,580) Technology (11,916) (11,676) Domain names (2,508) (3,510) Others (91) (757) Total accumulated amortization (751,642) (1,378,202) Less: accumulated impairment (11,353) (7,937) Intangible assets, net 3,082,259 2,245,962 |
Schedule of weighted average amortization periods of intangible assets | The weighted average amortization periods of intangible assets as of December 31, 2019 and 2020 are as below: December 31, 2019 2020 Trademark 10 years 10 years User base 3 years 3 years License 15 years 15 years Non-compete agreement 1 year 1 year Operating rights 2 years 2 years Software 3 years 3 years Domain names 14 years 14 years Technology Not applicable 5 years Others 10 years 10 years |
Others | |
Schedule of estimated amortization expenses | 15. Intangible assets, net (continued) The estimated amortization expenses for each of the following five years are as follows: Amortization expense of intangible assets RMB 2021 363,432 2022 303,294 2023 301,696 2024 250,664 2025 240,959 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill | |
Schedule of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 are as follows: All other Bigo Total RMB RMB RMB Balance as of December 31, 2018 11,763 — 11,763 Increase in goodwill related to acquisition (i) — 12,432,367 12,432,367 Foreign currency translation adjustments 16 503,046 503,062 Balance as of December 31, 2019 11,779 12,935,413 12,947,192 Increase in goodwill related to acquisition 104,839 — 104,839 Foreign currency translation adjustments (65) (836,810) (836,875) Balance as of December 31, 2020 116,553 12,098,603 12,215,156 (i) The increase in goodwill in 2019 was related to the acquisition of Bigo. Please refer to Note 5(a) for the acquisition of Bigo. |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred revenue | |
Schedule of classification of deferred revenue | December 31, 2019 2020 RMB RMB Deferred revenue, current Live streaming 161,868 414,006 Others 30,886 24,663 Total current deferred revenue 192,754 438,669 Deferred revenue, non-current Live streaming 12,685 16,504 Others 4,733 3,933 Total non-current deferred revenue 17,418 20,437 |
Accrued liabilities and other_2
Accrued liabilities and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued liabilities and other current liabilities | |
Schedule of accrued liabilities and other current liabilities | December 31, 2019 2020 RMB RMB Revenue sharing fees 353,638 779,167 Salaries and welfare 630,730 732,213 Marketing and promotion expenses 625,150 621,571 Value added taxes and other taxes payable 344,387 575,592 Bandwidth costs 203,536 195,652 Payables to merchants 106,814 45,570 Other payable of shares repurchase — 37,033 Deposits from third parties 9,330 13,974 Other payable to content providers 13,614 10,894 Others 133,389 149,319 Total 2,420,588 3,160,985 |
Short-term loans (Tables)
Short-term loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term loans | |
Schedule of short-term debt | December 31, 2019 2020 RMB RMB Short-term loans 557,203 734,371 |
Convertible bonds (Tables)
Convertible bonds (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term loans | |
Schedule of convertible bonds | December 31, 2019 2020 RMB RMB Non-current 2025 Convertible Senior Notes 2,646,642 2,679,216 2026 Convertible Senior Notes 2,361,929 2,405,146 Total 5,008,571 5,084,362 |
Cost of revenues (Tables)
Cost of revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cost of revenues | |
Schedule of Cost of revenues | For the year ended December 31, 2018 2019 2020 RMB RMB RMB Revenue sharing fees and content costs 287,168 2,118,495 5,601,439 Payment handling costs 17,741 652,458 1,317,205 Bandwidth costs 136,447 706,457 834,146 Salary and welfare 139,221 390,352 707,398 Depreciation and amortization 42,147 204,637 421,272 Technical service fee 33,818 304,499 410,293 Share-based compensation 46,373 41,007 39,910 Other taxes and surcharges 2,766 9,574 10,078 Other costs 20,020 125,179 167,848 Total 725,701 4,552,658 9,509,589 |
Other income (Tables)
Other income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other income | |
Schedule of other income | For the year ended December 31, 2018 2019 2020 RMB RMB RMB Government grants 10,693 31,226 45,359 Others 1,211 8,080 10,752 Total 11,904 39,306 56,111 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income tax | |
Schedule of the current and deferred portions of income tax expense included in the consolidated statements of comprehensive income | The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income are as follows: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expenses PRC entities (754,106) (903,740) (1,473,899) Non-PRC entities 1,318,981 177,839 1,591,617 Total 564,875 (725,901) 117,718 Current income tax (expenses) benefit PRC entities (4,592) 32,684 (43,394) Non-PRC entities (48,931) (30,024) (61,738) Total (53,523) 2,660 (105,132) Deferred income tax (expenses) benefit PRC entities 10,288 34,001 (44,075) Non-PRC entities (24,565) 104,447 (43,130) Total (14,277) 138,448 (87,205) Income tax (expenses) benefit PRC entities 5,696 66,685 (87,469) Non-PRC entities (73,496) 74,423 (104,868) Total (67,800) 141,108 (192,337) |
Schedule of the reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax income | The reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax income is as follows: For the year ended December 31, 2018 2019 2020 PRC Statutory income tax rate (25.0) % (25.0) % (25.0) % Effect of tax holiday and preferential tax benefit (7.2) % 23.0 % (169.3) % Effect of different tax rates available to different jurisdictions (i) 51.6 % (60.7) % 357.7 % Permanent differences (ii) (5.0) % 0.2 % (124.8) % Change in valuation allowance (39.3) % 59.6 % (384.5) % Effect of Super Deduction available to the Group 12.9 % (16.5) % 182.5 % Effective income tax rate (12.0) % (19.4) % (163.4) % Per ADS effect of tax holiday (RMB) 4.45 0.52 0.33 Per share effect of tax holiday (RMB) 0.22 0.03 0.02 (i) The effect of different tax rates available to different jurisdictions was mainly due to the re-measurement gain of the previously held equity interest in Bigo on the acquisition date incurred by Duowan BVI whose applicable tax rate is zero for the year ended December 31, 2019. (ii) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. |
Schedule of the tax effects of temporary differences that give rise to the deferred tax asset balances | December 31, 2019 2020 RMB RMB Deferred tax assets: Tax loss carried forward 604,949 808,332 Allowance for doubtful receivable, accrued expense and others not currently deductible for tax purposes 158,536 234,696 Deferred revenue 13,841 29,857 Impairment of investment 19,280 23,537 Others 2,479 7,683 Valuation allowance (i) (607,667) (980,388) Amounts offset by deferred tax liabilities (124,307) (123,717) Total deferred tax assets, net 67,111 — Deferred tax liabilities: Related to the fair value changes of investments 50,519 150,841 Related to acquired intangible assets 323,466 239,898 Others 14,961 9,780 Amounts offset by deferred tax assets (124,307) (123,717) Total deferred tax liabilities, net 264,639 276,802 (i) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. |
Summary of valuation allowance | Movement of valuation allowance For the year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at beginning of the year (57,281) (169,179) (607,667) Additions (236,981) (549,900) (584,363) Reversals 125,083 111,412 211,642 Balance at end of the year (169,179) (607,667) (980,388) |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation | |
Summary of the restricted share units activity | Weighted Number of average restricted grant-date shares fair value (US$) Outstanding, December 31, 2017 30,874,144 4.4969 Granted 11,977,794 4.7052 Forfeited (5,115,304) 4.6843 Vested (12,507,000) 3.6776 Outstanding, December 31, 2018 25,229,634 4.9639 Granted 16,114,095 3.0005 Forfeited (6,381,786) 4.7840 Vested (7,848,811) 4.7427 Outstanding, December 31, 2019 27,113,132 3.9034 Granted 62,770,405 3.6059 Forfeited (10,312,521) 3.9198 Vested (6,918,126) 4.3045 Outstanding, December 31, 2020 72,652,890 3.6059 Expected to vest as of December 31, 2020 69,119,313 3.5939 |
Summary of restricted shares activity | Weighted Number of average restricted grant-date fair shares value (US$) Outstanding, December 31, 2018 — — Replacement due to acquisition of Bigo 38,042,760 3.6100 Granted 16,041,327 3.4750 Forfeited (7,279,877) 3.6302 Vested (8,599,959) 3.6608 Outstanding, December 31, 2019 38,204,251 3.5267 Granted 4,541,086 3.9739 Forfeited (4,554,972) 3.5287 Vested (11,770,000) 3.6290 Outstanding, December 31, 2020 26,420,365 3.5577 Expected to vest as of December 31, 2020 23,362,211 3.5635 |
Summary of stock option activity | Movements in the number of share options granted and their related weighted average exercise prices are as follows: Weighted Weighted average Aggregate average remaining intrinsic Number of exercise contractual life value options price (US$) (years) (US$) Outstanding, January 1, 2018 — — — — Granted 10,934,300 4.7025 Outstanding, December 31, 2018 10,934,300 4.7025 5.29 — Granted 438,100 3.5350 Forfeited (1,065,000) 4.5225 Outstanding, December 31, 2019 10,307,400 3.8069 5.45 — Outstanding, December 31, 2020 10,307,400 3.8069 4.45 — Expected to vest as of December 31, 2020 10,307,400 3.8069 4.45 3,669 Exercisable as of December 31, 2020 3,233,650 4.4016 4.83 387 |
Schedule of stock option fair value assumptions | The Company has used binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions are set as below: 2019 Weighted average fair value per option granted 1.7582 Weighted average exercise price 3.5350 Weighted average Risk-free interest rate (1) 1.82 % Expected term (in year) (2) 6 Expected volatility (3) 56 % Dividend yield (4) — (1) The risk-free interest rate of periods within the contractual life of the share option is based on US Treasury Bonds of similar tenor at the valuation dates. (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the Company at the valuation dates. (4) The Company has no history or expectation of paying dividend on its common shares before December 31,2019. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. |
Basic and diluted net income _2
Basic and diluted net income per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Basic and diluted net income per share | |
Schedule of calculation of basic and diluted net income per share | Basic and diluted net income per share for the years ended December 31, 2018, 2019 and 2020 are calculated as follows: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) from continuing operations attributable to common shareholders of JOYY Inc. 614,630 (582,608) (171,237) Numerator for diluted income (loss) per share from continuing operations 614,630 (582,608) (171,237) Net income from discontinued operations attributable to common shareholders of JOYY Inc. 1,027,328 3,961,938 9,780,143 Incremental dilution from Huya (1) — (14,004) (4,531) Numerator for diluted income per share from discontinued operations 1,641,958 3,365,326 9,604,375 Denominator: Denominator for basic calculation—weighted average number of Class A and Class B common shares outstanding 1,280,847,795 1,544,396,920 1,600,199,759 Dilutive effect of share options 94,254 — — Dilutive effect of restricted share units 12,966,689 — — Denominator for diluted calculation 1,293,908,738 1,544,396,920 1,600,199,759 Basic net income (loss) per Class A and Class B common share 1.28 2.19 6.00 Continuing operations 0.48 (0.38) (0.11) Discontinued operations 0.80 2.57 6.11 Diluted net income (loss) per Class A and Class B common share 1.27 2.18 6.00 Continuing operations 0.48 (0.38) (0.11) Discontinued operations 0.79 2.56 6.11 Basic net income (loss) per ADS* 25.64 43.77 120.10 Continuing operations 9.60 (7.54) (2.14) Discontinued operations 16.04 51.31 122.24 Diluted net income (loss) per ADS* 25.38 43.59 120.04 Continuing operations 9.50 (7.54) (2.14) Discontinued operations 15.88 51.13 122.18 * Each ADS represents 20 common shares. (1) In calculation of diluted net income per share, assuming a dilutive effect, all of Huya’s existing unvested restricted share units and unexercised share options are treated as vested and exercised by Huya under the treasury stock method, causing the decrease percentage of the weighted average number of shares held by the Company in Huya. As a result, Huya’s net income (loss) attributable to the Company on a diluted basis decreased accordingly, which is presented as “incremental dilution from Huya” in the table. For the years ended December 31, 2018, 2019 and 2020, the following shares outstanding were excluded from the calculation of diluted net (loss) income per share, as their inclusion would have been anti-dilutive for the periods prescribed but which could potentially dilute EPS in the future. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Schedule of related parties and their relationships with the Group | The table below sets forth the major related parties and their relationships with the Group: Major related parties Relationship with the Group Guangzhou Sunhongs Corp., Ltd. (“Guangzhou Sunhongs”) (Formerly known as Guangzhou Shanghang Information Technology Co., Ltd.) Significant influence exercised by a principal shareholder of the Company Kingsoft Cloud Holdings Limited Significant influence exercised by a principal shareholder of the Company Xiaomi Corporation (“Xiaomi Group”) Controlled by a principal shareholder of the Company Huya * Investment with significant influence Shanghai Chuangsi Enterprise Development Co., Ltd. (“Shanghai Chuangsi”) Investment with significant influence * Since April 3, 2020, Huya ceased to be a subsidiary of the Group and the Group accounted for the investment in Huya using the equity method. |
Schedule of significant related party transactions | During the years ended December 31, 2018, 2019 and 2020, significant related party transactions are as follows: For the year ended December 31, 2018 2019 2020 RMB RMB RMB Disposal of investments to related parties — — 140,132 Bandwidth service provided by Guangzhou Sunhongs 92,454 92,553 98,364 Promotion expense charged from related parties 57 25,534 17,511 Bandwidth service provided by Kingsoft Cloud 2,106 11,899 14,694 Loan to related parties 188,000 170,000 5,000 Purchase of fixed assets from Kingsoft Cloud — 16,776 2,952 Payments on behalf of related parties, net of repayments (2,543) (12,261) 2,317 Online games revenue shared from related parties 31,366 3,588 — Repayment of loans from related parties 20,000 — — Others 9,626 13,878 5,874 |
Schedule of the amounts due from/to related parties | December 31, 2019 2020 RMB RMB Amounts due from related parties, current Others 1,709 3,986 Amounts due to related parties Due to Shanghai Chuangsi* 176,893 5,962 Due to Kingsoft Cloud 641 1,491 Due to Xiaomi Group 11,513 3,221 Due to Guangzhou Sunhongs 8,931 7,568 Others 7,943 6,699 Total 205,921 24,941 *Other receivables and payables from/to related parties are unsecured and payable on demand. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair value measurements | |
Summary of liabilities measured at fair value on recurring basis | As of December 31, 2019 Level 1 Level 2 Total Assets Short-term investments (i) 372,767 2,959,564 3,332,331 Equity investment with readily determinable fair values (ii) 115,926 — 115,926 Derivative – forward exchange contracts — 6,340 6,340 488,693 2,965,904 3,454,597 Liabilities Derivatives – forward exchange contracts — (11,495) (11,495) As of December 31, 2020 Level 1 Level 2 Total Assets Short-term investments (i) 810,237 2,381,101 3,191,338 Equity investment with readily determinable fair values (ii) 1,206,899 — 1,206,899 Derivative - forward exchange contracts — 354 354 2,017,136 2,381,455 4,398,591 Liabilities Derivatives - forward exchange contracts — (44,301) (44,301) (i) Short-term investments represented the investments issued by commercial banks or other financial institutions with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair value is provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. For the instruments whose fair value is estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. (ii) Equity investments with readily determinable fair values are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. |
Schedule of changes in level 3 instruments | The following table presents the changes in Level 3 assets for the years ended December 31, 2020: Available-for-sale debt investment — Convertible bond RMB Balance as of January 1, 2020 — Acquisition 6,525 Balance as of December 31, 2020 6,525 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and contingencies | |
Schedule of future minimum payments under non-cancellable operating leases | As of December 31, 2020, future minimum payments under non-cancellable operating leases commitments consist of the following: Office rental RMB 2021 9,318 2022 4,707 2023 1,495 2024 and after — 15,520 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting | |
Summary information by segment | For the year ended December 31, 2020: Bigo All other Elimination (1) Total RMB RMB RMB RMB Net revenues Live streaming 11,447,221 1,077,604 — 12,524,825 Others 507,062 199,058 — 706,120 Total net revenues 11,954,283 1,276,662 — 13,230,945 Cost of revenues (2) (8,330,271) (1,179,318) — (9,509,589) Gross profit 3,624,012 97,344 — 3,721,356 Operating expenses (2) Research and development expenses (1,343,893) (752,903) — (2,096,796) Sales and marketing expenses (3,078,226) (406,588) — (3,484,814) General and administrative expenses (593,237) (423,307) — (1,016,544) Total operating expenses (5,015,356) (1,582,798) — (6,598,154) Other income 24,848 31,263 — 56,111 Operating loss (1,366,496) (1,454,191) — (2,820,687) Interest expense (54,632) (500,753) 33,370 (522,015) Interest income and investment income 1,058 646,326 (33,370) 614,014 Foreign currency exchange losses, net (115,915) (2,944) — (118,859) Gain on disposal and deemed disposal of investments — 1,897,128 — 1,897,128 Gain on fair value changes of investment — 1,127,714 — 1,127,714 Fair value change on derivatives (1,841) (40,479) — (42,320) Other non-operating expenses (6,257) (11,000) — (17,257) (Loss) income before income tax expenses (1,544,083) 1,661,801 — 117,718 Income tax benefits (expenses) 64,382 (256,719) — (192,337) (Loss) income before share of loss in equity method investments, net of income taxes (1,479,701) 1,405,082 — (74,619) Share of loss in equity method investments, net of income taxes — (51,759) — (51,759) Net (loss) income from continuing operations (1,479,701) 1,353,323 — (126,378) (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total RMB RMB RMB Cost of revenues 28,280 11,630 39,910 Research and development expenses 233,928 61,361 295,289 Sales and marketing expenses 4,855 4,163 9,018 General and administrative expense 230,516 61,243 291,759 34. Segment Reporting (continued) (a) For the year ended December 31, 2019: Bigo All other Elimination (1) Total RMB RMB RMB RMB Net revenues Live streaming 4,561,760 769,030 — 5,330,790 Others 406,556 501,963 — 908,519 Total net revenues 4,968,316 1,270,993 — 6,239,309 Cost of revenues (2) (3,508,480) (1,044,178) — (4,552,658) Gross profit 1,459,836 226,815 — 1,686,651 Operating expenses (2) Research and development expenses (979,153) (654,515) — (1,633,668) Sales and marketing expenses (2,058,805) (735,919) — (2,794,724) General and administrative expenses (331,461) (606,758) — (938,219) Total operating expenses (3,369,419) (1,997,192) — (5,366,611) Gain on disposal of business — 82,699 — 82,699 Other income 9,581 29,725 — 39,306 Operating loss (1,900,002) (1,657,953) — (3,557,955) Interest expense (31,956) (265,513) 30,952 (266,517) Interest income and investment income 2,684 454,899 (30,952) 426,631 Foreign currency exchange gains (losses), net 13,208 (4,569) — 8,639 Gain on fair value changes of investment — 2,679,312 — 2,679,312 Fair value change on derivatives — (16,011) — (16,011) (Loss) income before income tax expenses (1,916,066) 1,190,165 — (725,901) Income tax benefits 136,937 4,171 — 141,108 (Loss) income before share of income in equity method investments, net of income taxes (1,779,129) 1,194,336 — (584,793) Share of income in equity method investments, net of income taxes — 41,315 — 41,315 Net (loss) income from continuing operations (1,779,129) 1,235,651 — (543,478) (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total RMB RMB RMB Cost of revenues 28,250 12,756 41,006 Research and development expenses 300,297 62,144 362,441 Sales and marketing expenses 4,256 744 5,000 General and administrative expense 32,462 85,167 117,629 |
Summary of revenues and property and equipment for of the Company's geographic operations | For the years ended December 31, 2018 2019 2020 RMB RMB RMB Revenues: PRC 827,717 2,052,372 2,505,034 Developed countries — 1,437,030 4,211,648 Middle East — 1,267,592 3,293,244 Southeast Asia and others 1,759 1,482,315 3,221,019 Developed countries mainly included the United States of America, Great Britain, Japan, South Korea and Australia, Middle East mainly included Saudi Arabia and other countries located in the region, and Southeast Asia and others mainly included countries located in Southeast Asia and India. As of December 31, 2019 2020 RMB RMB Property and equipment, net: PRC 1,321,640 1,607,248 Non- PRC 757,444 1,013,549 |
Organization and principal ac_3
Organization and principal activities - Principal Subsidiaries and VIEs to conduct its business operations (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Duowan BVI [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Beijing Huanju Shidai [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Guangzhou Huanju Shidai [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Engage L.P. [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 93.50% |
Hago Singapore [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Bigo [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Bigo Singapore [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Bigo HK [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
BaiGuoYuan Technology [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Guangzhou Huaduo [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Guangzhou BaiGuoYuan [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Organization and principal ac_4
Organization and principal activities - Additional Information (Details) ¥ in Thousands, $ in Millions | Aug. 10, 2020USD ($)shares | Apr. 03, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | Dec. 31, 2020CNY (¥) | Nov. 16, 2020USD ($) |
Organization and principal activities [Line Items] | |||||
Registered capital and PRC statutory reserves of the VIEs and VIE's subsidiaries | ¥ | ¥ 5,891,302 | ||||
YY Live | Held for sale | |||||
Organization and principal activities [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ | $ 3,600 | ||||
Disposal Group, Including Discontinued Operation, Consideration Subject to Conditions | $ | $ 300 | ||||
Bigo Inc | |||||
Organization and principal activities [Line Items] | |||||
Cash paid for acquisition | $ | $ 343.1 | ||||
Bigo Inc | Class A common shares | |||||
Organization and principal activities [Line Items] | |||||
Number of shares issued for acquisition | shares | 305,127,046 | ||||
Bigo Inc | Class B common shares | |||||
Organization and principal activities [Line Items] | |||||
Number of shares issued for acquisition | shares | 38,326,579 | ||||
Guangzhou Huya [Member] | Exclusive Business Cooperation Agreement [Member] | |||||
Organization and principal activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Term of agreement | 10 years | ||||
Term of agreement extension | 10 years | ||||
Guangzhou Huya [Member] | Exclusive Option Agreement [Member] | |||||
Organization and principal activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Term of agreement | 10 years | ||||
Term of agreement extension | 10 years | ||||
Guangzhou Huya [Member] | Power of Attorney [Member] | |||||
Organization and principal activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Term of agreement | 10 years | ||||
Term of agreement extension | 1 year | ||||
Guangzhou Huaduo [Member] | Exclusive Technology Support and Technology Services Agreement [Member] | |||||
Organization and principal activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Guangzhou Huaduo [Member] | Exclusive Option Agreement [Member] | |||||
Organization and principal activities [Line Items] | |||||
Term of agreement | 10 years | ||||
BaiGuoYuan Technology [Member] | Exclusive Option Agreement [Member] | |||||
Organization and principal activities [Line Items] | |||||
Term of agreement extension | 10 years | ||||
Huya Inc | Linen Investment Limited | |||||
Organization and principal activities [Line Items] | |||||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal | 17.50% | 31.20% | |||
Discontinued Operation Equity Method Investment Retained After Disposal Voting Power After Disposal | 24.10% | 43.00% | |||
Huya Inc | Class B common shares | Linen Investment Limited | |||||
Organization and principal activities [Line Items] | |||||
Discontinued Operation Equity Method Investment Sold | shares | 30,000,000 | 16,523,819 | |||
Disposal Group, Including Discontinued Operation, Consideration | $ | $ 810 | $ 262.6 | |||
Discontinued Operation Equity Method Investment Retained After Disposal Share After Disposal | shares | 38,374,463 | 68,374,463 |
Principal accounting policies_3
Principal accounting policies (Convenience Translation - Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥)$ / ¥ | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($)$ / ¥ | Jan. 01, 2020CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Convenience translation | |||||||
Rate of translations of amounts from RMB into US$ | $ / ¥ | 6.5250 | 6.5250 | |||||
Cash and cash equivalents | |||||||
cash, , cash equivalents, restricted cash and restricted short-term deposits | ¥ 11,666,329 | ¥ 3,367,157 | ¥ 5,246,974 | $ 1,787,942 | |||
Cash and cash equivalents | 11,371,264 | 2,710,623 | 1,742,722 | ||||
Restricted cash | 89,604 | 3,500 | 13,732 | ||||
Restricted short-term deposits | 205,461 | 653,034 | 31,488 | ||||
Impairment of long-lived assets | |||||||
Impairment charges of intangible assets | 0 | 8,408 | 0 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 40,721,310 | ¥ 38,417,766 | ¥ 21,377,131 | $ 6,240,816 | ¥ 10,712,859 | ||
Adjustment | |||||||
Impairment of long-lived assets | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | ¥ 12,100 | ¥ 87,800 | |||||
Contract Balance [Member] | |||||||
Impairment of long-lived assets | |||||||
Revenue, Remaining Performance Obligation, Amount | 459,106 | ||||||
Revenue Remaining Performance Obligation Expected to be Recognized | ¥ 438,669 |
Principal accounting policies_4
Principal accounting policies (Schedule of Property and Equipment Estimated Useful Lives and Residual Rate) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 40 years |
Residual rate (as a percent) | 0.00% |
Servers, computers and equipment [Member] | Minimum | |
Property and equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual rate (as a percent) | 0.00% |
Servers, computers and equipment [Member] | Maximum | |
Property and equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate (as a percent) | 5.00% |
Leasehold improvements [Member] | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 0.00% |
Estimated useful lives | Shorter of lease term or 5 years |
Decoration of buildings [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 10 years |
Residual rate (as a percent) | 0.00% |
Motor vehicles [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 4 years |
Motor vehicles [Member] | Minimum | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 0.00% |
Motor vehicles [Member] | Maximum | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 5.00% |
Furniture, fixture and office equipment [Member] | Minimum | |
Property and equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual rate (as a percent) | 0.00% |
Furniture, fixture and office equipment [Member] | Maximum | |
Property and equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate (as a percent) | 5.00% |
Principal accounting policies_5
Principal accounting policies (Schedule of Amortization of Finite-lived Intangible Assets is Computed Using Straight-line Method Over Following Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Trademark | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 10 years |
User Base | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 3 years |
License | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 15 years |
Non-compete agreement | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 1 year |
Operating rights | |
Intangible assets, net [Line Items] | |
Estimated useful lives | Shorter of the economic life or contract terms |
Software | Minimum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 1 year |
Software | Maximum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 5 years |
Domain names | Minimum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 10 years |
Domain names | Maximum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 15 years |
Technology | Maximum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 5 years |
Others | |
Intangible assets, net [Line Items] | |
Estimated useful lives | Shorter of the economic life or contract terms |
Land Use Rights [Member] | |
Intangible assets, net [Line Items] | |
Term Of Amortization | 40 years |
Principal accounting policies_6
Principal accounting policies (Revenue Recognition and Cost of Revenues - Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | |||||
First variation of VAT and related surcharges (as a percent) | 6.00% | ||||
Second variation of VAT and related surcharges (as a percent) | 9.00% | ||||
Third variation of VAT and related surcharges (as a percent) | 13.00% | ||||
Surcharges on business taxes and VAT (as a percent) | 12.00% | 12.00% | 12.00% | ||
Accounts Receivable, Net, Current | ¥ 933,057 | ¥ 668,342 | $ 142,997 | ¥ 148,423 | |
Additions charged to general and administrative expenses, net | ¥ (43,606) | (117) | ¥ (566) | ||
Advertising revenues [Member] | Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Period over which payments are due | 3 months | ||||
Others | |||||
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue | 56,966 | ||||
Revenue recognized | ¥ 30,886 | 52,233 | |||
Deferred revenue | 28,596 | 35,619 | |||
Live streaming | |||||
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue | 430,510 | 174,553 | ¥ 4,779 | ||
Revenue recognized | ¥ 161,868 | ¥ 4,779 |
Principal accounting policies_7
Principal accounting policies (Sales and Marketing Expenses, Share based Compensation, Statutory Reserves, Dividends and Segment Reporting - Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory reserves [Line Item] | |||
Advertising and market promotion expenses | ¥ 2,675,242 | ¥ 2,139,213 | ¥ 437,951 |
Employee social security and welfare benefits | ¥ 348,671 | 295,241 | 123,502 |
Minimum percentage appropriation to statutory surplus fund required | 10.00% | ||
Surplus fund threshold for mandatory appropriation requirement (as a percent) | 50.00% | ||
Amount appropriated to statutory reserves | ¥ 0 | 0 | 0 |
Statutory reserves | |||
Statutory reserves [Line Item] | |||
Amount appropriated to statutory reserves | ¥ 29,589 | ¥ 48,236 | ¥ 39,007 |
VIEs registered as PRC domestic companies | |||
Statutory reserves [Line Item] | |||
Minimum percentage appropriation to statutory surplus fund required | 10.00% | ||
Surplus fund threshold for mandatory appropriation requirement (as a percent) | 50.00% |
Principal accounting policies_8
Principal accounting policies (Leases - Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2019CNY (¥) | |
Principal accounting policies | ||||
Right of use assets | ¥ 140,802 | ¥ 172,783 | $ 21,579 | ¥ 145,200 |
Lease liability | ¥ 146,502 | 141,200 | ||
Weighted average remaining lease terms of the right-of-use assets | 1 year 9 months 21 days | 1 year 9 months 21 days | ||
Weighted average incremental borrowing rate | 5.36% | 5.36% | ||
Operating lease cost | ¥ 119,238 | 86,526 | ||
Short-term lease cost | 19,539 | 26,116 | ||
Cash paid for operating leases included in operating cash flows | 109,506 | 86,042 | ||
Lease liabilities arising from obtaining right-of-use assets | 82,573 | ¥ 79,518 | ||
Undiscounted cash flows to the operating lease liabilities recognized | ||||
2021 | 102,321 | |||
2022 | 45,979 | |||
2023 | 6,680 | |||
2024 and after | 6,883 | |||
Total undiscounted cash flows | 161,863 | |||
Less: imputed interest | (15,361) | |||
Present value of lease liabilities | ¥ 146,502 | ¥ 141,200 |
Discontinued operations - Dispo
Discontinued operations - Disposal of YV Live business and Huya assets, liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Total current assets | ¥ 342,743 | $ 52,528 | ¥ 10,759,557 |
Non-current assets | |||
Total non-current assets | 166,382 | 25,499 | 935,721 |
Current liabilities | |||
Total current liabilities | 1,168,667 | 179,106 | 3,626,622 |
Non-current liabilities | |||
Total non-current liabilities | 28,807 | $ 4,415 | 293,233 |
Held for sale | YY Live | |||
Current assets | |||
Cash and cash equivalents | 206,191 | 69,722 | |
Short-term investments | 70,327 | ||
Accounts receivable, net | 101,004 | 6,854 | |
Prepayments and other current assets | 35,548 | 31,641 | |
Total current assets | 342,743 | 178,544 | |
Non-current assets | |||
Deferred tax assets | 34,180 | 14,708 | |
Property and equipment, net | 59,900 | 80,590 | |
Intangible assets, net | 48,042 | 52,519 | |
Other non-current assets | 24,260 | 13,174 | |
Total non-current assets | 166,382 | 160,991 | |
Total assets | 509,125 | 339,535 | |
Current liabilities | |||
Deferred revenue | 326,702 | 355,549 | |
Advances from customers | 80,761 | 91,222 | |
Income taxes payable | 21,014 | 3,459 | |
Accrued liabilities and other current liabilities | 740,190 | 729,715 | |
Total current liabilities | 1,168,667 | 1,179,945 | |
Non-current liabilities | |||
Deferred revenue | 28,807 | 58,210 | |
Total non-current liabilities | ¥ 28,807 | 58,210 | |
Held for sale | Huya | |||
Current assets | |||
Cash and cash equivalents | 1,113,193 | ||
Restricted cash and cash equivalents | 1,392 | ||
Short-term deposits | 6,743,445 | ||
Short-term investments | 2,219,531 | ||
Accounts receivable, net | 86,822 | ||
Amounts due from related parties | 15,553 | ||
Prepayments and other current assets | 401,077 | ||
Total current assets | 10,581,013 | ||
Non-current assets | |||
Deferred tax assets | 45,816 | ||
Investments | 379,424 | ||
Property and equipment, net | 96,686 | ||
Intangible assets, net | 45,085 | ||
Right-of-use assets, net | 102,824 | ||
Other non-current assets | 104,895 | ||
Total non-current assets | 774,730 | ||
Total assets | 11,355,743 | ||
Current liabilities | |||
Accounts payable | 3,725 | ||
Deferred revenue | 795,005 | ||
Advances from customers | 50,961 | ||
Income taxes payable | 26,051 | ||
Accrued liabilities and other current liabilities | 1,522,697 | ||
Amounts due to related parties | 16,360 | ||
Lease liabilities due within one year | 31,878 | ||
Total current liabilities | 2,446,677 | ||
Non-current liabilities | |||
Deferred revenue | 164,913 | ||
Lease liabilities | 70,110 | ||
Total non-current liabilities | ¥ 235,023 |
Discontinued operations - Dis_2
Discontinued operations - Disposal of YV Live business and Huya operations and cash flow (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating expenses | ||||
Net (loss) income | ¥ 9,849,538 | $ 1,509,507 | ¥ 4,243,507 | ¥ 1,497,986 |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||||
Net cash provided by discontinuing operating activities | 3,442,891 | 527,646 | 5,812,919 | 4,627,131 |
Net cash (used in) provided by discontinued investing activities | 643,857 | 98,675 | (3,877,752) | (4,496,706) |
Net cash provided by discontinued financing activities | 8,591 | $ 1,317 | 2,123,532 | 4,126,861 |
YY Live | ||||
Operating expenses | ||||
Net (loss) income | 3,335,057 | 3,775,334 | 3,435,675 | |
Huya | ||||
Operating expenses | ||||
Net (loss) income | 6,514,481 | 468,173 | (1,937,689) | |
Held for sale | YY Live | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Total net revenues | 9,950,286 | 10,962,538 | 10,272,696 | |
Cost of revenues | (5,342,372) | (5,703,255) | (5,357,786) | |
Gross profit | 4,607,914 | 5,259,283 | 4,914,910 | |
Operating expenses | ||||
Research and development expenses | (362,406) | (393,100) | (412,046) | |
Sales and marketing expenses | (581,091) | (506,605) | (498,211) | |
General and administrative expenses | (152,866) | (198,450) | (203,678) | |
Total operating expenses | (1,096,363) | (1,098,155) | (1,113,935) | |
Other income | 166,272 | 203,408 | 67,018 | |
Operating income | 3,677,823 | 4,364,536 | 3,867,993 | |
Interest income and investment income | 2,899 | 2,455 | 1,565 | |
Income before income tax expenses | 3,680,722 | 4,366,991 | 3,869,558 | |
Income tax expenses | (345,665) | (591,657) | (433,883) | |
Net (loss) income | 3,335,057 | 3,775,334 | 3,435,675 | |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||||
Net cash provided by discontinuing operating activities | 3,306,835 | 3,857,386 | 3,909,671 | |
Net cash (used in) provided by discontinued investing activities | 47,139 | (192,781) | (27,158) | |
Held for sale | YY Live | Live streaming | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Total net revenues | 9,664,816 | 10,721,295 | 10,073,347 | |
Held for sale | YY Live | Others | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Total net revenues | 285,470 | 241,243 | 199,349 | |
Held for sale | Huya | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Total net revenues | 2,411,948 | 8,374,358 | 4,661,385 | |
Cost of revenues | (1,938,713) | (6,892,436) | (3,933,647) | |
Gross profit | 473,235 | 1,481,922 | 727,738 | |
Operating expenses | ||||
Research and development expenses | (156,776) | (508,714) | (265,152) | |
Sales and marketing expenses | (106,568) | (438,396) | (187,152) | |
General and administrative expenses | (145,625) | (352,824) | (287,710) | |
Total operating expenses | (408,969) | (1,299,934) | (740,014) | |
Other income | 11,327 | 79,390 | 38,938 | |
Operating income | 75,593 | 261,378 | 26,662 | |
Interest income and investment income | 85,740 | 304,491 | 156,549 | |
Foreign currency exchange gains (losses), net | (1,425) | 1,157 | 51 | |
Gain on fair value changes of investments | 2,160 | |||
Fair value change on derivatives | (2,285,223) | |||
Other non-operating expenses | (10,010) | |||
(Loss) income before income tax expenses | 152,058 | 567,026 | (2,101,961) | |
Income tax benefits (expenses) | (37,556) | (96,078) | 50,943 | |
Net (loss) income | 114,502 | 470,948 | (2,051,018) | |
Share of income in equity method investments, net of income taxes | (1,013) | (2,775) | 113,329 | |
Gain on disposal, net of tax | 6,400,992 | |||
Net (loss) income | 6,514,481 | 468,173 | (1,937,689) | |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||||
Net cash provided by discontinuing operating activities | 136,056 | 1,955,533 | 717,460 | |
Net cash (used in) provided by discontinued investing activities | 596,718 | (3,684,971) | (4,469,548) | |
Net cash provided by discontinued financing activities | 8,591 | 2,123,532 | 4,126,861 | |
Held for sale | Huya | Live streaming | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Total net revenues | 2,274,490 | 7,976,214 | 4,442,845 | |
Held for sale | Huya | Others | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Total net revenues | ¥ 137,458 | ¥ 398,144 | ¥ 218,540 |
Discontinued operations - Dis_3
Discontinued operations - Disposal of YV Live business and Huya Share-based compensation (Details) - Held for sale - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
YY Live | Cost of revenues | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost of revenues | ¥ 11,241 | ¥ 8,655 | ¥ 17,494 |
YY Live | Research and development expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Research and development expenses | 45,861 | 56,960 | 97,945 |
YY Live | Sales and marketing expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales and marketing expenses | 1,276 | 1,799 | 2,473 |
YY Live | General and administrative expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
General and administrative expense | 34,344 | 72,914 | 75,284 |
Huya | Cost of revenues | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost of revenues | 16,448 | 31,593 | 10,472 |
Huya | Research and development expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Research and development expenses | 37,041 | 86,296 | 30,643 |
Huya | Sales and marketing expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales and marketing expenses | 2,610 | 5,919 | 1,832 |
Huya | General and administrative expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
General and administrative expense | ¥ 95,469 | ¥ 157,936 | ¥ 183,748 |
Discontinued operations - Recon
Discontinued operations - Reconciliation of income from discontinued operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (loss) income from discontinued operations | ¥ 9,849,538 | $ 1,509,507 | ¥ 4,243,507 | ¥ 1,497,986 |
YY Live | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (loss) income from discontinued operations | 3,335,057 | 3,775,334 | 3,435,675 | |
Huya | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (loss) income from discontinued operations | ¥ 6,514,481 | ¥ 468,173 | ¥ (1,937,689) |
Certain risks and concentrati_3
Certain risks and concentration (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Certain risks and concentration [Line Items] | |||
Maximum foreign ownership in internet information provider or other value-added telecommunication service provider's business allowed under PRC laws and regulations | 50.00% | ||
Minimum | |||
Certain risks and concentration [Line Items] | |||
Term of contractual agreements | 10 years | ||
Maximum | |||
Certain risks and concentration [Line Items] | |||
Term of contractual agreements | 30 years | ||
Guangzhou Huaduo [Member] | |||
Certain risks and concentration [Line Items] | |||
Equity interests ownership (as a percent) | 100.00% | ||
Guangzhou Huaduo [Member] | Guangzhou Huanju Shidai and Beijing Huanju Shidai [Member] | |||
Certain risks and concentration [Line Items] | |||
Service fees | ¥ 1,015,205 | ¥ 815,463 | ¥ 201,578 |
Beijing Tuda and Guangzhou Huaduo [Member] | |||
Certain risks and concentration [Line Items] | |||
Maximum percentage of the income of VIEs which may be charged as service fees | 100.00% | ||
Maximum percentage of the profits payable by VIEs | 100.00% |
Certain risks and concentrati_4
Certain risks and concentration (Schedule of Consolidated Financial Information of Group's VIEs and VIE's Subsidiary Excluding Inter Company Items With Group's Subsidiaries Included in Accompanying Consolidated Financial Statements) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2019CNY (¥) | |
Current assets | ||||||
Cash and cash equivalents | ¥ 11,371,264 | ¥ 2,710,623 | $ 1,742,722 | |||
Restricted cash and cash equivalents | 89,604 | 3,500 | 13,732 | |||
Short-term deposits | 8,645,939 | 10,027,440 | 1,325,048 | |||
Restricted short-term deposits | 205,461 | 653,034 | 31,488 | |||
Short-term investments | 3,191,338 | 3,332,331 | 489,094 | |||
Accounts receivable, net | 933,057 | 668,342 | 142,997 | ¥ 148,423 | ||
Amounts due from related parties | 3,986 | 1,709 | 611 | |||
Financing receivables, net of allowance of RMB120,270 and RMB129,989 as of December 31, 2019 and 2020, respectively | 1,122 | 105,344 | 172 | |||
Prepayments and other current assets | 671,230 | 538,089 | 102,871 | |||
Assets held for sale | 342,743 | 10,759,557 | 52,528 | |||
Total current assets | 25,455,744 | 28,799,969 | 3,901,263 | |||
Non-current assets | ||||||
Deferred tax assets | 0 | 67,111 | 0 | |||
Investments | 8,086,663 | 1,983,483 | 1,239,335 | |||
Property and equipment, net | 2,620,797 | 2,079,084 | 401,655 | |||
Land use rights, net | 1,688,448 | 1,736,544 | 258,766 | |||
Intangible assets, net | 2,245,962 | 3,082,259 | 344,209 | |||
Other non-current assets | 70,196 | 275,957 | 10,758 | |||
Assets held for sale | 166,382 | 935,721 | 25,499 | |||
Total non-current assets | 27,363,050 | 23,409,514 | 4,193,572 | |||
Total assets | 52,818,794 | 52,209,483 | 8,094,835 | |||
Current liabilities | ||||||
Accounts payable | 136,733 | 120,826 | 20,955 | |||
Deferred revenue | 438,669 | 192,754 | 67,229 | |||
Advances from customers | 5,058 | 7,908 | 775 | |||
Income taxes payable | 397,334 | 422,113 | 60,894 | |||
Accrued liabilities and other current liabilities | 3,160,985 | 2,420,588 | 484,442 | |||
Amounts due to related parties | 24,941 | 205,921 | 3,822 | |||
Lease liabilities due within one year | 93,513 | 83,686 | 14,331 | |||
Short-term loans | 734,371 | 557,203 | 112,547 | |||
Liabilities held for sale, current | 1,168,667 | 3,626,622 | 179,106 | |||
Total current liabilities | 6,160,271 | 7,637,621 | 944,101 | |||
Non-current liabilities | ||||||
Lease liabilities | 52,989 | 92,669 | 8,121 | |||
Deferred revenue | 20,437 | 17,418 | 3,132 | |||
Deferred tax liabilities | 276,802 | 264,639 | 42,422 | |||
Other non-current liabilities | 0 | 11,495 | 0 | |||
Liabilities held for sale, non-current | 28,807 | 293,233 | 4,415 | |||
Total non-current liabilities | 5,463,397 | 5,688,025 | 837,303 | |||
Total liabilities | 11,623,668 | 13,325,646 | $ 1,781,404 | |||
Net revenues | 13,230,945 | $ 2,027,731 | 6,239,309 | ¥ 829,476 | ||
Net income | 9,608,906 | 1,472,630 | 3,379,330 | 1,641,958 | ||
Net cash used in operating activities | 3,424,106 | 524,767 | 4,581,691 | 4,464,814 | ||
Net cash used in investing activities | 5,414,937 | $ 829,875 | (15,609,900) | (6,295,386) | ||
Variable interest entity | ||||||
Current assets | ||||||
Cash and cash equivalents | 1,620,133 | 1,589,539 | ||||
Restricted cash and cash equivalents | 3,497 | 3,500 | ||||
Short-term deposits | 4,370,002 | 4,000,003 | ||||
Restricted short-term deposits | 200,000 | 650,000 | ||||
Short-term investments | 1,739,843 | 3,302,143 | ||||
Accounts receivable, net | 168,896 | 109,222 | ||||
Amounts due from related parties | 11,119 | 1,707 | ||||
Financing receivables, net of allowance of RMB120,270 and RMB129,989 as of December 31, 2019 and 2020, respectively | 322 | 74,247 | ||||
Prepayments and other current assets | 362,757 | 331,640 | ||||
Assets held for sale | 330,118 | 2,207,953 | ||||
Total current assets | 8,806,687 | 12,269,954 | ||||
Non-current assets | ||||||
Deferred tax assets | 0 | 60,461 | ||||
Investments | 2,491,644 | 1,496,261 | ||||
Property and equipment, net | 1,021,111 | 772,619 | ||||
Land use rights, net | 1,688,448 | 1,736,544 | ||||
Intangible assets, net | 393,096 | 531,438 | ||||
Right of use asset, net | 42,157 | 54,838 | ||||
Other non-current assets | 40,135 | 174,286 | ||||
Assets held for sale | 129,818 | 785,220 | ||||
Total non-current assets | 5,806,409 | 5,611,667 | ||||
Total assets | 14,613,096 | 17,881,621 | ||||
Current liabilities | ||||||
Accounts payable | 104,691 | 89,708 | ||||
Deferred revenue | 111,839 | 78,877 | ||||
Advances from customers | 191 | 7,908 | ||||
Income taxes payable | 127,186 | 296,032 | ||||
Accrued liabilities and other current liabilities | 707,610 | 877,942 | ||||
Amounts due to related parties | 14,837 | 194,336 | ||||
Lease liabilities due within one year | 30,682 | 28,874 | ||||
Short-term loans | 669,048 | 270,565 | ||||
Liabilities held for sale, current | 1,164,022 | 3,113,821 | ||||
Total current liabilities | 2,930,106 | 4,958,063 | ||||
Non-current liabilities | ||||||
Lease liabilities | 12,935 | 26,305 | ||||
Deferred revenue | 9,703 | 4,988 | ||||
Deferred tax liabilities | 70,900 | 85,479 | ||||
Other non-current liabilities | 0 | 11,495 | ||||
Liabilities held for sale, non-current | 28,807 | 227,923 | ||||
Total non-current liabilities | 122,345 | 356,190 | ||||
Total liabilities | 3,052,451 | 5,314,253 | ||||
Net revenues | 2,740,837 | 1,950,090 | 810,211 | |||
Net income | (914,070) | (352,329) | (470,666) | |||
Net cash used in operating activities | (510,381) | (216,489) | (200,884) | |||
Net cash used in investing activities | (330,350) | (3,768,408) | (1,774,355) | |||
Net cash provided by financing activities | 149,942 | 271,852 | 3,647 | |||
Net (decrease) / increase in cash and cash equivalents | ¥ (690,789) | ¥ (3,713,045) | ¥ (1,971,592) |
Business combination - Acquisit
Business combination - Acquisition of Bigo (Details) - Bigo Inc - CNY (¥) ¥ in Millions | 1 Months Ended | |
Feb. 28, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Ownership interest held | 31.70% | |
Cash paid for acquisition | ¥ 343.1 | |
Class A common shares | ||
Business Acquisition [Line Items] | ||
Number of shares issued for acquisition | 305,127,046 | |
Class A common shares | Employees | ||
Business Acquisition [Line Items] | ||
Number of shares issued for acquisition | 8,761,450 | |
Class B common shares | ||
Business Acquisition [Line Items] | ||
Number of shares issued for acquisition | 38,326,579 |
Business combination - Summariz
Business combination - Summarizes the components of the purchase consideration (Details) - Bigo Inc ¥ in Thousands | Mar. 04, 2019CNY (¥) |
Components of the purchase consideration transferred | |
Cash | ¥ 2,300,196 |
Fair value of common shares issued | 7,704,420 |
Fair value of previously held equity interest in Bigo | 5,697,154 |
Elimination of preexisting amounts due from Bigo | 323,002 |
Total consideration | ¥ 16,024,772 |
Business combination - Fair val
Business combination - Fair value of common shares (Details) ¥ in Thousands, $ in Thousands | Mar. 04, 2019CNY (¥)shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Business Acquisition [Line Items] | |||||
Gain Loss On Fair Value Changes Of Investments | ¥ 1,127,714 | $ 172,830 | ¥ 2,679,312 | ¥ 1,487,405 | |
Bigo Inc | |||||
Business Acquisition [Line Items] | |||||
Post-acquisition share-based compensation | ¥ 590,346 | ||||
Amounts due from Bigo | 323,002 | ||||
Gain Loss On Fair Value Changes Of Investments | 2,669,334 | ||||
Acquisition-related costs | ¥ 27,162 | ||||
Class A common shares | Bigo Inc | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued for acquisition | shares | 305,127,046 | ||||
Number of shares for replacement awards to employees to replace their original share-based awards | shares | 38,042,760 |
Business combination - Fair v_2
Business combination - Fair value of the assets acquired and liabilities (Details) ¥ in Thousands, $ in Thousands | Mar. 04, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Net tangible assets acquired: | |||||
Goodwill | ¥ 12,215,156 | $ 1,872,055 | ¥ 12,947,192 | ¥ 11,763 | |
Bigo Inc | |||||
Net tangible assets acquired: | |||||
-Cash and cash equivalents, restricted cash and cash equivalents and restricted short-term deposits | ¥ 643,433 | ||||
-Accounts receivables | 386,517 | ||||
-Other current assets | 52,432 | ||||
-Property and equipment, net | 294,030 | ||||
-Other non-current assets | 174,837 | ||||
Accrued liabilities and other liabilities | (1,156,854) | ||||
Deferred tax liabilities | (316,859) | ||||
Goodwill | 12,432,367 | ||||
Total | 16,024,772 | ||||
Trademark | Bigo Inc | |||||
Net tangible assets acquired: | |||||
Identifiable intangible assets acquired | ¥ 2,400,354 | ||||
Amortization period | 10 years | ||||
User Base | Bigo Inc | |||||
Net tangible assets acquired: | |||||
Identifiable intangible assets acquired | ¥ 1,027,191 | ||||
Amortization period | 3 years | ||||
Non-compete agreement | Bigo Inc | |||||
Net tangible assets acquired: | |||||
Identifiable intangible assets acquired | ¥ 81,129 | ||||
Amortization period | 1 year | ||||
Others | Bigo Inc | |||||
Net tangible assets acquired: | |||||
Identifiable intangible assets acquired | ¥ 6,195 |
Business combination - Pro form
Business combination - Pro forma information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pro forma information of the acquisition | ||
Pro forma net revenues | ¥ 6,900,638 | ¥ 3,851,927 |
Pro forma net loss | ¥ (3,437,602) | ¥ (1,651,288) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | ¥ 11,371,264 | $ 1,742,722 | ¥ 2,710,623 | |
Others | ||||
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | 155,389 | 121,595 | ||
RMB [Member] | ||||
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | 2,691,718 | 1,608,999 | ||
US$ [Member] | ||||
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | ¥ 8,524,157 | $ 1,306,404 | ¥ 980,029 | $ 140,482 |
Short-term deposits (Details)
Short-term deposits (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Short Term And Long Term Deposits [Line Items] | ||||
Short-term deposits | ¥ 8,645,939 | $ 1,325,048 | ¥ 10,027,440 | |
RMB [Member] | ||||
Short Term And Long Term Deposits [Line Items] | ||||
Short-term deposits | 4,470,002 | 4,000,003 | ||
US$ [Member] | ||||
Short Term And Long Term Deposits [Line Items] | ||||
Short-term deposits | ¥ 4,175,937 | $ 640,000 | ¥ 6,027,437 | $ 864,000 |
Restricted short-term deposits
Restricted short-term deposits (Narrative) (Details) ¥ in Thousands, $ in Millions, $ in Millions | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019HKD ($) | Dec. 31, 2019USD ($) |
Restricted Cash And Investments [Line Items] | ||||
Restricted Of Short Term Deposit | ¥ 205,461 | ¥ 653,034 | ||
Loans Payable | ||||
Restricted Cash And Investments [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ 200,000 | $ 320 | $ 40 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | |
Accounts Receivable Net [Line Items] | |||||||
Accounts receivable, gross | ¥ 981,259 | ¥ 668,406 | |||||
Less: allowance for doubtful receivables | ¥ (48,202) | ¥ (7,422) | ¥ (7,422) | (48,202) | (64) | ||
Accounts receivable, net | 933,057 | $ 142,997 | 668,342 | ¥ 148,423 | |||
Summary of allowance for doubtful accounts | |||||||
Balance at the beginning of the year | (64) | (7,422) | (6,856) | ||||
Additions charged to general and administrative expenses, net | (43,606) | (117) | (566) | ||||
Write-off during the year | 7,475 | 0 | |||||
Balance at the end of the year | (48,202) | (64) | (7,422) | ||||
Adoption of ASC326 | |||||||
Accounts Receivable Net [Line Items] | |||||||
Less: allowance for doubtful receivables | (4,532) | 0 | 0 | ¥ (4,532) | ¥ 0 | ||
Summary of allowance for doubtful accounts | |||||||
Balance at the beginning of the year | 0 | 0 | |||||
Balance at the end of the year | ¥ (4,532) | ¥ 0 | ¥ 0 |
Financing receivables, net (Sch
Financing receivables, net (Schedule Of Accounts Financing Receivables) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Financing receivables, gross | ¥ 326,255 | ¥ 421,494 | ||
Less: allowance for financing receivables | (196,489) | (186,770) | ¥ (15,829) | |
Financing receivables, net | 129,766 | 234,724 | ||
Current portion | 1,122 | $ 172 | 105,344 | |
Non-current portion | 128,644 | $ 19,716 | 129,380 | |
Micro Credit personal Loans [Member] | ||||
Financing receivables, gross | 130,311 | 194,517 | ||
Corporate Loans [Member] | ||||
Financing receivables, gross | ¥ 195,944 | ¥ 226,977 |
Financing receivables, net (S_2
Financing receivables, net (Schedule of Aging of Financing Receivables) (Details 1) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivables, Past Due | ¥ 325,454 | ¥ 307,626 |
Financing Receivables, Current | 801 | 113,868 |
Total financing receivables | 326,255 | 421,494 |
Financing Receivables 1 To 90 Days Past Due [Member] | ||
Financing Receivables, Past Due | 29,109 | |
Financing Receivables 91 To 180 Days Past Due [Member] | ||
Financing Receivables, Past Due | 24 | 26,192 |
Financing Receivables 181 To 360 Days Past Due [Member] | ||
Financing Receivables, Past Due | 20,783 | 232,142 |
Financing Receivables Over 1 Year Past Due [Member] | ||
Financing Receivables, Past Due | 304,647 | 20,183 |
Micro Credit personal Loans [Member] | ||
Financing Receivables, Past Due | 130,311 | 112,483 |
Financing Receivables, Current | 82,034 | |
Total financing receivables | 130,311 | 194,517 |
Micro Credit personal Loans [Member] | Financing Receivables 1 To 90 Days Past Due [Member] | ||
Financing Receivables, Past Due | 29,109 | |
Micro Credit personal Loans [Member] | Financing Receivables 91 To 180 Days Past Due [Member] | ||
Financing Receivables, Past Due | 24 | 26,192 |
Micro Credit personal Loans [Member] | Financing Receivables 181 To 360 Days Past Due [Member] | ||
Financing Receivables, Past Due | 20,783 | 36,999 |
Micro Credit personal Loans [Member] | Financing Receivables Over 1 Year Past Due [Member] | ||
Financing Receivables, Past Due | 109,504 | 20,183 |
Corporate Loans [Member] | ||
Financing Receivables, Past Due | 195,143 | 195,143 |
Financing Receivables, Current | 801 | 31,834 |
Total financing receivables | 195,944 | 226,977 |
Corporate Loans [Member] | Financing Receivables 181 To 360 Days Past Due [Member] | ||
Financing Receivables, Past Due | ¥ 195,143 | |
Corporate Loans [Member] | Financing Receivables Over 1 Year Past Due [Member] | ||
Financing Receivables, Past Due | ¥ 195,143 |
Financing receivables, net (All
Financing receivables, net (Allowance For Financing Receivables) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at the beginning of the year | ¥ (186,770) | ¥ (15,829) |
Charge to general and administrative expenses for the year | (4,671) | (170,941) |
Balance at the end of the year | (196,489) | ¥ (186,770) |
Adoption of ASC326 | Adjustment | ||
Balance at the end of the year | ¥ (5,048) |
Financing receivables, net - (N
Financing receivables, net - (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Impairment of investments | ¥ 43,861 | $ 6,722 | ¥ 62,334 | ¥ 35,348 |
Impairment of financing Receivable | 0 | |||
Loans past due | 325,454 | 307,626 | ||
Financing Receivable, Net | 129,766 | 234,724 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivables, Non-accrual Status | 130,311 | 83,374 | ||
Micro Credit personal Loans [Member] | ||||
Impairment Charges in General and Administrative Expenses | ¥ 4,700 | 104,000 | ||
Corporate Loans [Member] | ||||
Sale-and-leaseback arrangements under corporate loans , the principal amount due in January 2019 and the lessee unable to repay | 15,000 | |||
Impairment of investments | 67,000 | |||
Financing Receivable, Net | ¥ 195,000 |
Prepayments and other current_3
Prepayments and other current assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Prepayments and other current assets | |||
Interests receivable | ¥ 234,923 | ¥ 155,265 | |
Value added taxes to be deducted | 126,098 | 82,561 | |
Receivable from payment platforms | 88,954 | 66,858 | |
Employee advances | 24,096 | 21,474 | |
Prepayments and deposits to vendors and content providers | 42,723 | 36,719 | |
Deposits | 36,612 | 32,903 | |
Loans to third parties | 646 | 83,253 | |
Receivables from disposal of investments | 19,882 | ||
Others | 117,178 | 39,174 | |
Total | ¥ 671,230 | $ 102,871 | ¥ 538,089 |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Investments | |||
Equity investments accounted for using the equity method (i) | ¥ 5,429,647 | ¥ 857,412 | |
Equity investments with readily determinable fair values (ii) | 1,206,899 | 115,926 | |
Equity investments without readily determinable fair values (iii) | 1,443,592 | 1,010,145 | |
Available-for-sale debt investment | 6,525 | 0 | |
Total | ¥ 8,086,663 | $ 1,239,335 | ¥ 1,983,483 |
Investments (Schedule of equity
Investments (Schedule of equity method investments) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Currents assets | ¥ 25,455,744 | ¥ 28,799,969 | $ 3,901,263 | ||
Non-current assets | 27,363,050 | 23,409,514 | 4,193,572 | ||
Current liabilities | 6,160,271 | 7,637,621 | 944,101 | ||
Non-current liabilities | 5,463,397 | 5,688,025 | 837,303 | ||
Non-controlling interests | 35,868 | 5,351,880 | $ 5,497 | ||
Revenues | 13,230,945 | $ 2,027,731 | 6,239,309 | ¥ 829,476 | |
Gross Profit | 3,721,356 | 570,323 | 1,686,651 | 103,775 | |
Net income | 9,723,160 | 1,490,140 | 3,700,029 | 2,115,697 | |
Net income attributable to common shareholders of the Company | 9,608,906 | $ 1,472,630 | 3,379,330 | 1,641,958 | |
Equity Method Investments [Member] | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Currents assets | 12,710,995 | 1,456,771 | |||
Non-current assets | 1,976,493 | 806,739 | |||
Current liabilities | 2,917,594 | 307,199 | |||
Non-current liabilities | 279,378 | 3,353 | |||
Non-controlling interests | 0 | 299 | |||
Revenues | 9,716,934 | 758,550 | 987,592 | ||
Gross Profit | 2,673,976 | 627,241 | 852,059 | ||
Net income | 162,887 | 220,262 | 541,500 | ||
Net income attributable to common shareholders of the Company | ¥ 162,887 | ¥ 220,279 | ¥ 541,500 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Consideration to acquire minority stake | ¥ 655,736 | ¥ 563,530 | ||
Net gain from the disposal and deem disposal | 1,802,000 | |||
Ownership interest acquired | 68.30% | |||
Equity investments without readily determinable fair values | 1,443,592 | ¥ 1,010,145 | ||
Available-for-sale debt investment | 6,525 | 0 | ||
Impairment of investments | ¥ 43,861 | $ 6,722 | ¥ 62,334 | ¥ 35,348 |
Investments disposed or partially disposed | 140,132 | 23,761 | ||
Equity Securities ,FV-NI, Realized Gain(Loss) | ¥ (6,354) | ¥ 2,676,014 | 356,545 | |
Equity Securities, FV-NI, Gain or loss | 101,735 | 2,657,370 | 1,601,082 | |
Unrealized Gain (Loss) on Investments | 108,089 | ¥ (18,644) | ¥ 1,244,537 | |
Investees [Member] | ||||
Ownership interest held | 20.00% | |||
Ownership interest acquired | 20.00% | |||
Bigo Inc | ||||
Ownership interest held | 31.70% | |||
Ownership interest acquired | 31.70% | |||
Equity Method Investments [Member] | ||||
Equity Method Investments Original Cost | 597,349 | ¥ 332,201 | ||
Gain on disposal of equity method investment | 813,322 | |||
Equity investments without readily determinable fair values | 929,965 | |||
Cash consideration for disposal of investment without readily determinable fair values | 17,058 | 141,875 | ||
Equity Securities, FV-NI, Gain or loss | ¥ 1,014,918 | ¥ 21,942 | ¥ (113,677) |
Property and equipment, net (Sc
Property and equipment, net (Schedule of Property and Equipment) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property and equipment, net [Line Items] | |||
Gross carrying amount | ¥ 3,659,354 | ¥ 2,731,870 | |
Less: accumulated depreciation | (1,038,557) | (647,486) | |
Impairment of property and equipment | (5,300) | ||
Property and equipment, net | 2,620,797 | $ 401,655 | 2,079,084 |
Buildings [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 998,916 | 867,518 | |
Servers, computers and equipment [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 1,968,376 | 1,309,687 | |
Leasehold improvements [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 58,503 | 44,522 | |
Decoration of buildings [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 103,059 | 103,305 | |
Furniture, fixture and office equipment [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 31,241 | 30,441 | |
Motor vehicles [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 43,232 | 43,275 | |
Construction in progress [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | ¥ 456,027 | ¥ 333,122 |
Property and equipment, net (Na
Property and equipment, net (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property and equipment, net | ||||
Depreciation expense | ¥ 535,498 | $ 82,069 | ¥ 275,741 | ¥ 65,054 |
Land use rights, net (Schedule
Land use rights, net (Schedule Of Land Use Right) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Gross carrying amount | ¥ 3,632,101 | ¥ 3,845,254 | |
Less: accumulated amortization | (1,378,202) | (751,642) | |
Land use right, net | 2,245,962 | $ 344,209 | ¥ 3,082,259 |
Land Use Rights [Member] | |||
Gross carrying amount | 1,924,563 | ||
Less: accumulated amortization | (236,115) | ||
Land use right, net | ¥ 1,688,448 |
Land use rights, net (Schedul_2
Land use rights, net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - Land Use Rights [Member] ¥ in Thousands | Dec. 31, 2020CNY (¥) |
2021 | ¥ 48,096 |
2022 | 48,096 |
2023 | 48,096 |
2024 | 48,096 |
2025 | ¥ 48,096 |
Land use rights, net (Narrative
Land use rights, net (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Amortization of acquired intangible assets and land use right | ¥ 756,427 | $ 115,928 | ¥ 699,243 | ¥ 60,246 |
Land Use Rights [Member] | ||||
Amortization of acquired intangible assets and land use right | ¥ 48,096 | ¥ 48,096 | ¥ 48,100 |
Intangible assets, net (Summary
Intangible assets, net (Summary of Group's Intangible Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Intangible assets, net [Line Items] | |||
Gross carrying amount | ¥ 3,632,101 | ¥ 3,845,254 | |
Less: accumulated amortization | (1,378,202) | (751,642) | |
Less: accumulated impairment | (7,937) | (11,353) | |
Intangible assets, net | 2,245,962 | $ 344,209 | 3,082,259 |
Operating rights | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 46,251 | 46,251 | |
Less: accumulated amortization | (45,545) | (45,458) | |
Trademark | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 2,348,814 | 2,497,480 | |
Less: accumulated amortization | (428,357) | (208,128) | |
User Base | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 1,004,681 | 1,069,668 | |
Less: accumulated amortization | (753,317) | (366,139) | |
Non-compete agreement | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 78,951 | 84,412 | |
Less: accumulated amortization | (78,951) | (70,348) | |
Software | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 55,284 | 56,053 | |
Less: accumulated amortization | (51,509) | (46,696) | |
Domain names | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 7,809 | 7,567 | |
Less: accumulated amortization | (3,510) | (2,508) | |
Technology | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 17,662 | 18,237 | |
Less: accumulated amortization | (11,676) | (11,916) | |
License | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 63,428 | 63,428 | |
Less: accumulated amortization | (4,580) | (358) | |
Others | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 9,221 | 2,158 | |
Less: accumulated amortization | ¥ (757) | ¥ (91) |
Intangible assets, net (Schedul
Intangible assets, net (Schedule of Estimated Amortization Expenses) (Details) - Indefinite-lived Intangible Assets [Member] ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Amortization expense of intangible assets | |
2021 | ¥ 363,432 |
2022 | 303,294 |
2023 | 301,696 |
2024 | 250,664 |
2025 | ¥ 240,959 |
Intangible assets, net (Sched_2
Intangible assets, net (Schedule of Weighted Average Amortization Periods of Intangible Assets) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Domain names | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 14 years | 14 years |
User Base | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 3 years | 3 years |
Technology | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 5 years | 0 years |
Software | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 3 years | 3 years |
Operating rights | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 2 years | 2 years |
License | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 15 years | 15 years |
Trademark | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 10 years | 10 years |
Non-compete agreement | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 1 year | 1 year |
Others | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 10 years | 10 years |
Intangible assets, net (Narrati
Intangible assets, net (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Amortization of acquired intangible assets and land use right | ¥ 756,427 | $ 115,928 | ¥ 699,243 | ¥ 60,246 |
Finite-Lived Intangible Assets [Member] | ||||
Amortization of acquired intangible assets and land use right | ¥ 708,331 | ¥ 651,147 | ¥ 12,146 |
Goodwill (Details)
Goodwill (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Goodwill | |||
Balance at beginning of the year | ¥ 12,947,192 | ¥ 11,763 | |
Foreign currency translation adjustment | (836,875) | 503,062 | |
Increase in goodwill related to acquisition | 104,839 | 12,432,367 | |
Balance at end of the year | 12,215,156 | $ 1,872,055 | 12,947,192 |
All other | |||
Goodwill | |||
Balance at beginning of the year | 11,779 | 11,763 | |
Foreign currency translation adjustment | (65) | 16 | |
Increase in goodwill related to acquisition | 104,839 | ||
Balance at end of the year | 116,553 | 11,779 | |
Bigo [Member] | |||
Goodwill | |||
Balance at beginning of the year | 12,935,413 | ||
Foreign currency translation adjustment | (836,810) | 503,046 | |
Increase in goodwill related to acquisition | 12,432,367 | ||
Balance at end of the year | ¥ 12,098,603 | ¥ 12,935,413 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill | ||
Carrying value of reporting unit | 10.00% | 1.00% |
Deferred revenue (Details)
Deferred revenue (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Contract with Customer, Liability [Line Items] | |||
Deferred revenue, current | ¥ 438,669 | $ 67,229 | ¥ 192,754 |
Deferred revenue, non-current | 20,437 | $ 3,132 | 17,418 |
Live streaming | |||
Contract with Customer, Liability [Line Items] | |||
Deferred revenue, current | 414,006 | 161,868 | |
Deferred revenue, non-current | 16,504 | 12,685 | |
Others | |||
Contract with Customer, Liability [Line Items] | |||
Deferred revenue, current | 24,663 | 30,886 | |
Deferred revenue, non-current | ¥ 3,933 | ¥ 4,733 |
Accrued liabilities and other_3
Accrued liabilities and other current liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accrued liabilities and other current liabilities | |||
Revenue sharing fees | ¥ 779,167 | ¥ 353,638 | |
Salaries and welfare | 732,213 | 630,730 | |
Marketing and promotion expenses | 621,571 | 625,150 | |
Value added taxes and other taxes payable | 575,592 | 344,387 | |
Bandwidth costs | 195,652 | 203,536 | |
Payables to merchants | 45,570 | 106,814 | |
Other payable of shares repurchase | 37,033 | ||
Deposits from third parties | 13,974 | 9,330 | |
Other payable to content providers | 10,894 | 13,614 | |
Others | 149,319 | 133,389 | |
Total | ¥ 3,160,985 | $ 484,442 | ¥ 2,420,588 |
Short-term loans (Details)
Short-term loans (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Short-term loans | |||
Short-term Debt | ¥ 734,371 | $ 112,547 | ¥ 557,203 |
Short-term loans (Narrative) (D
Short-term loans (Narrative) (Details) ¥ in Thousands, $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥)loan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019HKD ($) | |
Number of loans borrowed | loan | 3 | ||||
Debt Instrument, Face Amount | ¥ 41,000 | ||||
Restricted short-term deposits | 205,461 | ¥ 653,034 | $ 31,488 | ||
Loans Payable | |||||
Debt Instrument, Face Amount | 693,000 | 557,000 | 6,300 | $ 39,000 | $ 320 |
Line of Credit Facility, Maximum Borrowing Capacity | 546,000 | $ 95,000 | $ 40,000 | $ 320 | |
Restricted short-term deposits | ¥ 200,000 | ¥ 650,000 | |||
Debt Instrument, Maturity Date, Description | These loans were all with a maturity of less than one year | These loans were all with a maturity of less than one year | |||
Loans Payable | Minimum | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.36% | 2.38% | 1.36% | 2.38% | 2.38% |
Loans Payable | Maximum | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.77% | 3.90% | 3.77% | 3.77% |
Convertible bonds (Details)
Convertible bonds (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Convertible bonds, non-current | |||
Convertible bonds | ¥ 5,084,362 | $ 779,213 | ¥ 5,008,571 |
Notes due 2025 | |||
Convertible bonds, non-current | |||
Convertible bonds | 2,679,216 | 2,646,642 | |
Notes due 2026 | |||
Convertible bonds, non-current | |||
Convertible bonds | 2,405,146 | 2,361,929 | |
Long-term Debt [Member] | |||
Convertible bonds, non-current | |||
Convertible bonds | ¥ 5,084,362 | ¥ 5,008,571 |
Convertible bonds (Narrative) (
Convertible bonds (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands, shares in Millions | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($)$ / shares | Jun. 19, 2019USD ($)$ / shares | |
Convertible bonds | ||||||
Aggregate principle amount | ¥ | ¥ 41,000 | |||||
Proceeds from Convertible Debt | 0 | $ 0 | ¥ 6,209,590 | ¥ 0 | ||
Interest expense | 522,015 | 80,002 | 266,517 | ¥ 8,616 | ||
Convertible bonds, non-current | ¥ 5,084,362 | 5,008,571 | $ 779,213 | |||
Purchased call option | $ 77,000 | |||||
Initial conversion price | $ / shares | $ 127.9 | |||||
ADS [Member] | ||||||
Convertible bonds | ||||||
Initial conversion price | $ / shares | $ 95.9 | |||||
Number of shares agreed to sell | shares | 10.4 | 10.4 | ||||
Convertible bonds, current | ||||||
Convertible bonds | ||||||
Interest expense | ¥ | ¥ 496,767 | 246,434 | ||||
Convertible bonds, non-current | ||||||
Convertible bonds | ||||||
Aggregate principle amount | $ 1,000 | |||||
Convertible bonds, non-current | 5,084,400 | 5,008,600 | $ 779,200 | |||
Notes due 2025 | ||||||
Convertible bonds | ||||||
Aggregate principle amount | $ 500,000 | |||||
Interest rate (as a percent) | 0.75% | |||||
Proceeds from Convertible Debt | $ 491,000 | |||||
Convertible bonds, non-current | ¥ | 2,679,216 | 2,646,642 | ||||
Cash conversion version features | 364,000 | |||||
Debt issuance costs | 9,000 | |||||
Amortization of debt issuance costs | 7,000 | |||||
Amount allocated as deduction to the equity component | 2,000 | |||||
Notes due 2026 | ||||||
Convertible bonds | ||||||
Aggregate principle amount | $ 500,000 | |||||
Interest rate (as a percent) | 1.375% | |||||
Proceeds from Convertible Debt | 491,000 | |||||
Convertible bonds, non-current | ¥ | ¥ 2,405,146 | 2,361,929 | ||||
Cash conversion version features | 324,000 | |||||
Debt issuance costs | $ 9,000 | |||||
Amortization of debt issuance costs | 6,000 | |||||
Amount allocated as deduction to the equity component | $ 3,000 | |||||
Notes due 2025 and 2026 | ||||||
Convertible bonds | ||||||
Interest expense | ¥ | ¥ 246,434 | |||||
Initial conversion rate | $ / shares | $ 0.0104271 | |||||
Initial conversion price | $ / shares | $ 95.9 |
Cost of revenues (Details)
Cost of revenues (Details) - Cost of revenues - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue sharing fees and content costs | ¥ 5,601,439 | ¥ 2,118,495 | ¥ 287,168 |
Bandwidth costs | 834,146 | 706,457 | 136,447 |
Payment handling costs | 1,317,205 | 652,458 | 17,741 |
Salary and welfare | 707,398 | 390,352 | 139,221 |
Technical service fee | 410,293 | 304,499 | 33,818 |
Depreciation and amortization | 421,272 | 204,637 | 42,147 |
Share-based compensation | 39,910 | 41,007 | 46,373 |
Other taxes and surcharges | 10,078 | 9,574 | 2,766 |
Other costs | 167,848 | 125,179 | 20,020 |
Total | ¥ 9,509,589 | ¥ 4,552,658 | ¥ 725,701 |
Other income (Details)
Other income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Other income | ||||
Government grants | ¥ 45,359 | ¥ 31,226 | ¥ 10,693 | |
Others | 10,752 | 8,080 | 1,211 | |
Total | ¥ 56,111 | $ 8,599 | ¥ 39,306 | ¥ 11,904 |
Income tax (Schedule of Current
Income tax (Schedule of Current and Deferred Portions of Income Tax Expense Included in Consolidated Statements of Comprehensive Income) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Current and deferred portions of income tax expense | ||||
Income (loss) before income tax expenses | ¥ 117,718 | $ 18,042 | ¥ (725,901) | ¥ 564,875 |
Current income tax expenses | (105,132) | 2,660 | (53,523) | |
Deferred income tax benefit (expenses) | (87,205) | (13,365) | 138,448 | (14,277) |
Income tax (expenses) benefit | (192,337) | $ (29,477) | 141,108 | (67,800) |
PRC Entities [Member] | ||||
Current and deferred portions of income tax expense | ||||
Income (loss) before income tax expenses | (1,473,899) | (903,740) | (754,106) | |
Current income tax expenses | (43,394) | 32,684 | (4,592) | |
Deferred income tax benefit (expenses) | (44,075) | 34,001 | 10,288 | |
Income tax (expenses) benefit | (87,469) | 66,685 | 5,696 | |
Non PRC Entities [Member] | ||||
Current and deferred portions of income tax expense | ||||
Income (loss) before income tax expenses | 1,591,617 | 177,839 | 1,318,981 | |
Current income tax expenses | (61,738) | (30,024) | (48,931) | |
Deferred income tax benefit (expenses) | (43,130) | 104,447 | (24,565) | |
Income tax (expenses) benefit | ¥ (104,868) | ¥ 74,423 | ¥ (73,496) |
Income tax (Schedule of Reconci
Income tax (Schedule of Reconciliation of Total Tax Expense Computed by Applying Respective Statutory Income Tax Rate to Pre-tax Income) (Details) - ¥ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
PRC Statutory income tax rate (as a percent) | (25.00%) | (25.00%) | (25.00%) | |
Effect of tax holiday and preferential tax rate benefit (as a percent) | (169.30%) | 23.00% | (7.20%) | |
Effect of different tax rates available to different jurisdictions (as a percent) | [1] | 357.70% | (60.70%) | 51.60% |
Permanent differences (as a percent) | [2] | (124.80%) | 0.20% | (5.00%) |
Change in valuation allowance (as a percent) | (384.50%) | 59.60% | (39.30%) | |
Effect of Super Deduction available to the Group (as a percent) | 182.50% | (16.50%) | 12.90% | |
Effective income tax rate (as a percent) | (163.40%) | (19.40%) | (12.00%) | |
Per share effect of tax holiday (RMB) | ¥ 0.02 | ¥ 0.03 | ¥ 0.22 | |
ADS [Member] | ||||
Per share effect of tax holiday (RMB) | ¥ 0.33 | ¥ 0.52 | ¥ 4.45 | |
[1] | The effect of different tax rates available to different jurisdictions was mainly due to the re-measurement gain of the previously held equity interest in Bigo on the acquisition date incurred by Duowan BVI whose applicable tax rate is zero for the year ended December 31, 2019. | |||
[2] | Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. |
Income tax (Schedule of Tax Eff
Income tax (Schedule of Tax Effects of Temporary Differences that Give Rise to Deferred Tax Asset Balances) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Deferred tax assets: | |||||||
Tax loss carried forward | ¥ 808,332 | ¥ 604,949 | |||||
Allowance for doubtful receivable, accrued expense and others not currently deductible for tax purposes | 234,696 | 158,536 | |||||
Deferred revenue | 29,857 | 13,841 | |||||
Impairment of investment | 23,537 | 19,280 | |||||
Others | 7,683 | 2,479 | |||||
Valuation allowance | (980,388) | [1] | (607,667) | [1] | ¥ (169,179) | ¥ (57,281) | |
Amounts offset by deferred tax liabilities | (123,717) | (124,307) | |||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent, Total | 0 | $ 0 | 67,111 | ||||
Deferred tax liabilities: | |||||||
Related to the fair value changes of investments | 150,841 | 50,519 | |||||
Related to acquired intangible assets | 239,898 | 323,466 | |||||
Others | 9,780 | 14,961 | |||||
Amounts offset by deferred tax assets | (123,717) | (124,307) | |||||
Total deferred tax liabilities, net | ¥ 276,802 | ¥ 264,639 | |||||
[1] | Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. |
Income tax (Schedule of Movemen
Income tax (Schedule of Movement of valuation allowance) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Income tax | |||||
Balance at beginning of the year | ¥ (607,667) | [1] | ¥ (169,179) | ¥ (57,281) | |
Additions | (584,363) | (549,900) | (236,981) | ||
Reversals | 211,642 | 111,412 | 125,083 | ||
Balance at end of the year | ¥ (980,388) | [1] | ¥ (607,667) | [1] | ¥ (169,179) |
[1] | Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. |
Income tax (Narrative) (Details
Income tax (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | 36 Months Ended | 120 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2017 | |
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |||
Aggregate undistributed earnings of subsidiaries available for distribution | ¥ 17,011,683 | ¥ 16,010,167 | ¥ 17,011,683 | |||
Dividends | 448,534 | |||||
Deferred tax liabilities accrued for undistributed earnings | ¥ 0 | ¥ 0 | 0 | |||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 182.50% | (16.50%) | 12.90% | |||
Cayman Islands Tax Information Authority [Member] | ||||||
Income tax [Line Items] | ||||||
Withholding taxes | ¥ 0 | |||||
Maximum | Inland Revenue, Hong Kong [Member] | ||||||
Income tax [Line Items] | ||||||
PRC withholding tax rate (as a percent) | 5.00% | |||||
China | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 25.00% | |||||
PRC withholding tax rate (as a percent) | 10.00% | |||||
China | HNTE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | ||||
Term of preferential income tax rate | 3 years | |||||
China | KNSE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 10.00% | |||||
Term of preferential income tax rate | 3 years | |||||
Tax reduction available as a percentage of the applicable rate | 50.00% | |||||
China | State Administration of Taxation, China [Member] | ||||||
Income tax [Line Items] | ||||||
Amount of tax deduction to tax assessable profits as a percentage of qualified research and development | 75.00% | 50.00% | ||||
Operating Loss Carryforwards | ¥ 2,248,432 | 2,248,432 | ||||
Foreign Tax Authority [Member] | Inland Revenue, Hong Kong [Member] | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 16.50% | |||||
Operating Loss Carryforwards | ¥ 30,391 | 30,391 | ||||
Foreign Tax Authority [Member] | Inland Revenue, Singapore (IRAS) [Member] | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 17.00% | |||||
Beneficial tax rate | 5.00% | |||||
Operating Loss Carryforwards | ¥ 2,721,376 | 2,721,376 | ||||
Other countries | ||||||
Income tax [Line Items] | ||||||
Operating Loss Carryforwards | ¥ 510,456 | ¥ 510,456 | ||||
Guangzhou Huaduo [Member] | China | HNTE | ||||||
Income tax [Line Items] | ||||||
Beneficial tax rate | 15.00% | |||||
Guangzhou Huanju Shidai [Member] | China | KNSE | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 10.00% | |||||
Preferential tax rate (as a percent) | 10.00% | |||||
Guangzhou Juhui Information Technology Co., Ltd. [Member] | China | Software Enterprise | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 12.50% | 0.00% | ||||
Other PRC Subsidiaries [Member] | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 25.00% | |||||
Guangzhou Huya [Member] | China | HNTE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 15.00% | |||||
Term of preferential income tax rate | 3 years | |||||
Huya Technology [Member] | China | Software Enterprise | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 10.00% | 0.00% | ||||
Guangzhou BaiGuoYuan [Member] | China | HNTE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 15.00% | |||||
Guangzhou BaiGuoYuan [Member] | China | Software Enterprise | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 12.50% | 0.00% | ||||
Duowan BVI [Member] | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 0.00% |
Mezzanine equity (Narrative) (D
Mezzanine equity (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 11, 2018CNY (¥) | Mar. 08, 2018CNY (¥)shares | Mar. 08, 2018USD ($)shares | Jul. 10, 2017CNY (¥)shares | Jul. 10, 2017USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares |
Derivative, Gain (Loss) on Derivative, Net | ¥ (42,320) | $ (6,486) | ¥ (16,011) | ¥ 0 | ||||||
Huya Inc | ||||||||||
Redeemable NonControlling Interest Equity Stock Issued During Period Shares New Issues | shares | 22,058,823 | 22,058,823 | ||||||||
Redeemable NonControlling Interest Equity Stock Issued During Period Value New Issues | ¥ 509,730 | $ 75,000 | ||||||||
Derivative Liability | 892,000 | |||||||||
Derivative, Gain (Loss) on Derivative, Net | (2,285,223) | |||||||||
Temporary Equity, Accretion to Redemption Value | 71,628 | |||||||||
Additional Paid in Capital | ¥ 4,804,947 | |||||||||
Proceeds from Issuance Initial Public Offering | 795,073 | |||||||||
Other Preferred Stock Dividends and Adjustments | ¥ 489,284 | |||||||||
Convertible Preferred Stock, Nonredeemable or Redeemable, Issuer Option, Value | ¥ 4,009,874 | |||||||||
Huya Inc | Series A Preferred Stock [Member] | ||||||||||
Shares Issued, Price Per Share | $ / shares | $ 3.4 | |||||||||
Huya Inc | Series B2 Preferred Shares [Member] | ||||||||||
Redeemable NonControlling Interest Equity Stock Issued During Period Shares New Issues | shares | 64,488,235 | 64,488,235 | ||||||||
Redeemable NonControlling Interest Equity Stock Issued During Period Value New Issues | ¥ 2,919,112 | $ 461,600 | ||||||||
Other Subsidiary | ||||||||||
Redeemable NonControlling Interest Equity Stock Issued During Period Shares New Issues | shares | 500,000,000 | 500,000,000 | ||||||||
Redeemable NonControlling Interest Equity Stock Issued During Period Value New Issues | ¥ 345,420 | $ 50,000 | ||||||||
Temporary Equity, Accretion to Redemption Value | ¥ 34,565 | ¥ 34,448 | ¥ 5,758 |
Common shares and treasury sh_2
Common shares and treasury shares (Narrative) (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2020USD ($) | Jan. 31, 2020CNY (¥) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018shares | Aug. 13, 2019USD ($) | Dec. 31, 2017shares | |
Common shares [Line Items] | |||||||
Average price per ADS | $ / shares | $ 69.8407 | $ 54.6194 | |||||
Aggregate consideration | $ | $ 115.8 | $ 23.7 | |||||
Purchase of a capped call option | $ | $ 11.7 | ||||||
Initial investment returned | $ 12.2 | ¥ 84.8 | |||||
Class A common shares | |||||||
Common shares [Line Items] | |||||||
Common shares, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||||
Common shares, shares issued | 1,314,208,824 | 1,301,845,404 | 981,740,848 | ||||
Common shares, shares outstanding | 1,272,346,218 | 1,293,162,504 | 981,740,848 | ||||
Number of shares repurchased | 33,165,820 | 8,682,900 | |||||
Average price per share | $ / shares | $ 3.4920 | $ 2.7310 | |||||
Class B common shares | |||||||
Common shares [Line Items] | |||||||
Common shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Common shares, shares issued | 326,509,555 | 326,509,555 | 288,182,976 | ||||
Common shares, shares outstanding | 326,509,555 | 326,509,555 | 288,182,976 | ||||
Restricted share | Class A common shares | |||||||
Common shares [Line Items] | |||||||
Issuance of common share (in shares) | 12,363,420 | 6,216,060 | 6,694,940 | ||||
common Stock | Class A common shares | |||||||
Common shares [Line Items] | |||||||
Common shares, shares outstanding | 1,272,346,218 | 1,293,162,504 | 981,740,848 | 945,245,908 | |||
Issuance of common stock for acquisition (in shares) | 305,127,046 | ||||||
common Stock | Class A common shares | Bigo Inc | |||||||
Common shares [Line Items] | |||||||
Issuance of common stock for acquisition (in shares) | 305,127,046 | ||||||
common Stock | Class B common shares | |||||||
Common shares [Line Items] | |||||||
Conversion of Stock, Shares Converted | 29,800,000 | ||||||
Common shares, shares outstanding | 326,509,555 | 326,509,555 | 288,182,976 | 317,982,976 | |||
Issuance of common stock for acquisition (in shares) | 38,326,579 | ||||||
common Stock | Class B common shares | Bigo Inc | |||||||
Common shares [Line Items] | |||||||
Issuance of common stock for acquisition (in shares) | 38,326,579 | ||||||
ADS [Member] | |||||||
Common shares [Line Items] | |||||||
Number of shares repurchased | 1,658,291 | 434,145 | |||||
Total outstanding share repurchase program | $ | $ 300 |
Share-based compensation (Share
Share-based compensation (Share Options - Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2009shares | Dec. 31, 2008shares | Dec. 31, 2020CNY (¥)installmentshares | Dec. 31, 2020USD ($)installmentshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Sep. 16, 2011shares | |
Share-based compensation [Line Items] | |||||||
Shares authorized for issuance | 43,000,000 | ||||||
Share-based Compensation | ¥ 635,976 | $ 97,468 | ¥ 526,076 | ¥ 228,134 | |||
General and administrative expenses | |||||||
Share-based compensation [Line Items] | |||||||
Share-based Compensation | ¥ 291,759 | $ 44,714 | ¥ 117,629 | ¥ 83,758 | |||
Employees [Member] | Vested in four equal installments over the following 48 months | |||||||
Share-based compensation [Line Items] | |||||||
Number of vesting installments | installment | 2 | 2 | |||||
Share Incentive Scheme [Member] | |||||||
Share-based compensation [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 0 | 438,100 | |||||
2011 Incentive Scheme [Member] | |||||||
Share-based compensation [Line Items] | |||||||
Awards granted (in shares) | 438,100 | 10,934,300 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 1,065,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 3,233,650 | ||||||
2011 Incentive Scheme [Member] | Employees [Member] | Vested after 24 months of the grant date and two equal installments over the following 24 months | |||||||
Share-based compensation [Line Items] | |||||||
Number of vesting installments | installment | 3 | 3 | |||||
Vesting percentage remaining | 50.00% | 50.00% | |||||
Vesting percentage | 50.00% | 50.00% | |||||
Vesting period | 36 months | 36 months | |||||
2011 Incentive Scheme [Member] | Employees [Member] | Vested in four equal installments over the following 48 months | |||||||
Share-based compensation [Line Items] | |||||||
Vesting period | 24 months | 24 months | |||||
Secondary vesting period | 24 months | 24 months | |||||
2011 Incentive Scheme [Member] | Employees [Member] | Vested in three equal installments over the following 36 months | |||||||
Share-based compensation [Line Items] | |||||||
Number of vesting installments | installment | 1 | 1 | |||||
Vesting percentage remaining | 50.00% | 50.00% | |||||
Vesting percentage | 50.00% | 50.00% | |||||
Vesting period | 24 months | 24 months | |||||
Secondary vesting period | 12 months | 12 months | |||||
Share options [Member] | Pre-2009 Scheme Options [Member] | Employees [Member] | |||||||
Share-based compensation [Line Items] | |||||||
Awards granted (in shares) | 8,499,050 | 12,705,700 | |||||
Share options [Member] | Pre-2009 Scheme Options [Member] | Non-employee [Member] | |||||||
Share-based compensation [Line Items] | |||||||
Awards granted (in shares) | 3,832,290 | ||||||
Share options [Member] | 2011 Incentive Scheme [Member] | |||||||
Share-based compensation [Line Items] | |||||||
Allocated Share-based Compensation Expense | ¥ | ¥ 38,686 | ¥ 49,154 | ¥ 22,760 | ||||
Restricted share | 2011 Incentive Scheme [Member] | |||||||
Share-based compensation [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,541,086 | 4,541,086 | 16,041,327 | ||||
Restricted share units | 2011 Incentive Scheme [Member] | |||||||
Share-based compensation [Line Items] | |||||||
Allocated Share-based Compensation Expense | ¥ | ¥ 325,788 | ¥ 107,977 | ¥ 197,434 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 62,770,405 | 62,770,405 | 16,114,095 | 11,977,794 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | ¥ | ¥ 1,114,731 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months 29 days | 1 year 6 months 29 days |
Share-based compensation (Restr
Share-based compensation (Restricted Share Units - Narrative) (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2012 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 16, 2011 | |
Share-based compensation [Line Items] | |||||
Shares approved for grants to qualified persons | 43,000,000 | ||||
Annual increase on the first day of each fiscal year, beginning from 2013 in maximum aggregate number of shares which may be issued pursuant to all awards under the Plan | 20,000,000 | ||||
2011 Incentive Scheme [Member] | Restricted share units | |||||
Share-based compensation [Line Items] | |||||
Granted (in shares) | 62,770,405 | 16,114,095 | 11,977,794 | ||
Share-based compensation | ¥ 325,788 | ¥ 107,977 | ¥ 197,434 | ||
Total unrecognized compensation expense | ¥ 1,114,731 | ||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 6 months 29 days |
Share-based compensation (Summa
Share-based compensation (Summary of Restricted Share Units Activity) (Details) - 2011 Incentive Scheme [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of restricted shares | |||
Outstanding at the end of the period (in shares) | 10,307,400 | ||
Weighted average grant-date fair value | |||
Outstanding at the end of the period (in dollars per share) | $ 3.8069 | ||
Restricted share units | |||
Number of restricted shares | |||
Outstanding at the beginning of the period (in shares) | 27,113,132 | 25,229,634 | 30,874,144 |
Granted (in shares) | 62,770,405 | 16,114,095 | 11,977,794 |
Forfeited (in shares) | (10,312,521) | (6,381,786) | (5,115,304) |
Vested (in shares) | (6,918,126) | (7,848,811) | (12,507,000) |
Outstanding at the end of the period (in shares) | 72,652,890 | 27,113,132 | 25,229,634 |
Expected to vest at the end of the period (in shares) | 69,119,313 | ||
Weighted average grant-date fair value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 3.9034 | $ 4.9639 | $ 4.4969 |
Granted (in dollars per share) | 3.6059 | 3.0005 | 4.7052 |
Forfeited (in dollars per share) | 3.9198 | 4.7840 | 4.6843 |
Vested (in dollars per share) | 4.3045 | 4.7427 | 3.6776 |
Outstanding at the end of the period (in dollars per share) | 3.6059 | $ 3.9034 | $ 4.9639 |
Expected to vest at the end of the period (in dollars per share) | $ 3.5939 |
Share-based compensation (Res_2
Share-based compensation (Restricted Shares - Narrative) (Details) - CNY (¥) ¥ in Thousands | Mar. 04, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Bigo Inc | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Post-acquisition share-based compensation | ¥ 590,346 | |||
Restricted share | Bigo Inc | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Post-acquisition share-based compensation | ¥ 267,962 | ¥ 364,907 | ||
Bigo's Share Incentive Scheme [Member] | Restricted share | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation expense | ¥ 219,226 | |||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 8 months 8 days | |||
Bigo's Share Incentive Scheme [Member] | Restricted share | Bigo Inc | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 38,042,760 | |||
Bigo's Share Incentive Scheme [Member] | Restricted share | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 4,541,086 | |||
Bigo's Share Incentive Scheme [Member] | Restricted share | Vested after 24 months of the grant date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Vesting period | 24 months | |||
Bigo's Share Incentive Scheme [Member] | Restricted share | Vested in two equal installments over the following 24 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Vesting period | 24 months | |||
Bigo's Share Incentive Scheme [Member] | Restricted share | Vested in four equal installments over the following 48 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 48 months | |||
Bigo's Share Incentive Scheme [Member] | Restricted share | Vested in three equal installments over the following 36 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 36 months |
Share-based compensation (Sum_2
Share-based compensation (Summary of Restricted Shares Activity) (Details) - 2011 Incentive Scheme [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of restricted shares | ||
Outstanding at the end of the period (in shares) | 10,307,400 | |
Weighted average grant-date fair value | ||
Outstanding at the end of the period (in dollars per share) | $ 3.8069 | |
Restricted share | ||
Number of restricted shares | ||
Outstanding at the beginning of the period (in shares) | 38,204,251 | 0 |
Replacement due to acquisition of Bigo | 38,042,760 | |
Granted (in shares) | 4,541,086 | 16,041,327 |
Forfeited (in shares) | (4,554,972) | (7,279,877) |
Vested (in shares) | (11,770,000) | (8,599,959) |
Outstanding at the end of the period (in shares) | 26,420,365 | 38,204,251 |
Expected to vest at the end | 23,362,211 | |
Weighted average grant-date fair value | ||
Outstanding at the beginning of the period (in dollars per share) | $ 3.5267 | $ 0 |
Replacement due to acquisition of Bigo | 3.6100 | |
Granted (in dollars per share) | 3.9739 | 3.4750 |
Forfeited (in dollars per share) | 3.5287 | 3.6302 |
Vested (in dollars per share) | 3.6290 | 3.6608 |
Outstanding at the end of the period (in dollars per share) | 3.5577 | $ 3.5267 |
Expected to vest at the end (in dollars per share) | $ 3.5635 |
Share-based compensation (Sha_2
Share-based compensation (Share-based compensation-Share options-2011 Share Incentive Scheme) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Granted ,weighted average exercise price | $ 1.7582 | |||
2011 Incentive Scheme [Member] | ||||
Balance ,options | 10,307,400 | 10,934,300 | 0 | |
Granted ,options | 438,100 | 10,934,300 | ||
Forfeited ,Options | (1,065,000) | |||
Balance ,options | 10,307,400 | 10,934,300 | 0 | |
Expected to vest at December 31, 2019 ,options | 10,307,400 | |||
Exercisable at December 31, 2019 ,options | 3,233,650 | |||
Granted ,weighted average exercise price | $ 3.5350 | $ 4.7025 | ||
Forfeited ,weighted average exercise price | 4.5225 | |||
Balance ,weighted average exercise price | $ 3.8069 | $ 4.7025 | ||
Expected to vest at December 31, 2019 ,weighted average exercise price | $ 3.8069 | |||
Exercisable at December 31, 2019 ,weighted average exercise price | $ 4.4016 | |||
Balance ,contractual life | 4 years 5 months 12 days | 5 years 5 months 12 days | 5 years 3 months 14 days | 0 years |
Expected to vest at December 31, 2019 ,contractual life | 4 years 5 months 12 days | |||
Exercisable at December 31, 2019 ,contractual life | 4 years 9 months 29 days | |||
Balance, December 31, 2019 ,aggregate intrinsic value | $ 0 | $ 0 | ||
Expected to vest at December 31, 2019 ,aggregate intrinsic value | $ 3,669 | |||
Exercisable at December 31, 2019 ,aggregate intrinsic value | $ 387 |
Share-based compensation (Binom
Share-based compensation (Binomial option-pricing) (Details) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Share-based compensation | |
Weighted average fair value per option granted | $ 1.7582 |
Weighted average exercise price | $ 3.5350 |
Risk-free interest rate | 1.82% |
Expected term (in year) | 6 years |
Expected volatility | 56.00% |
Dividend yield | 0.00% |
Share-based compensation (Sha_3
Share-based compensation (Share based awards granted to an employee of a subsidiary and Other share based compensation - Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsidiaries of Variable Interest Entity [Member] | |||
Share-based compensation | ¥ 3,540 | ¥ 4,038 | ¥ 7,940 |
Basic and diluted net income _3
Basic and diluted net income per share (Schedule of Calculation of Basic and Diluted Net Income Per Share) (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019$ / shares | [2] | Dec. 31, 2018CNY (¥)¥ / sharesshares | ||||||
Numerator: | |||||||||||
Net income (loss) from continuing operations attributable to common shareholders of JOYY Inc. | ¥ (171,237) | $ (26,243) | ¥ (582,608) | ¥ 614,630 | |||||||
Numerator for diluted income (loss) per share from continuing operations | ¥ | (171,237) | (582,608) | 614,630 | ||||||||
Net income from discontinued operations attributable to common shareholders of JOYY Inc. | 9,780,143 | $ 1,498,873 | 3,961,938 | 1,027,328 | |||||||
Incremental dilution from Huya | ¥ | [1] | (4,531) | (14,004) | ||||||||
Numerator for diluted income per share from discontinued operations | ¥ | ¥ 9,604,375 | ¥ 3,365,326 | ¥ 1,641,958 | ||||||||
Denominator: | |||||||||||
Denominator for basic calculation-weighted average number of Class A and Class B common shares outstanding | 1,600,199,759 | 1,600,199,759 | 1,544,396,920 | 1,280,847,795 | |||||||
Dilutive effect of share options | 94,254 | ||||||||||
Dilutive effect of restricted share units | 12,966,689 | ||||||||||
Denominator for diluted calculation (in shares) | 1,600,199,759 | 1,600,199,759 | 1,544,396,920 | 1,293,908,738 | |||||||
Basic net income (loss) | |||||||||||
Net income per share, Basic | (per share) | ¥ 6 | $ 0.92 | [2] | ¥ 2.19 | $ 2.19 | ¥ 1.28 | [2] | ||||
Continued operations | (per share) | (0.11) | (0.02) | (0.38) | 0.48 | |||||||
Discontinued operations | (per share) | 6.11 | 0.94 | 2.57 | 0.80 | |||||||
Diluted net income (loss) | |||||||||||
Diluted net income per share | (per share) | [2] | 6 | 0.92 | 2.18 | 1.27 | ||||||
Continued operations | (per share) | (0.11) | (0.02) | (0.38) | 0.48 | |||||||
Discontinued operations | (per share) | 6.11 | 0.94 | 2.56 | 0.79 | |||||||
ADS | |||||||||||
Basic net income (loss) | |||||||||||
Net income per share, Basic | (per share) | [2] | 120.10 | 18.40 | 43.77 | 25.64 | ||||||
Continued operations | (per share) | (2.14) | [2] | (0.33) | (7.54) | [2] | 9.60 | [2] | ||||
Discontinued operations | (per share) | 122.24 | [2] | 18.73 | 51.31 | [2] | 16.04 | [2] | ||||
Diluted net income (loss) | |||||||||||
Diluted net income per share | (per share) | [2] | 120.04 | 18.39 | 43.59 | 25.38 | ||||||
Continued operations | (per share) | (2.14) | [2] | (0.33) | (7.54) | [2] | 9.50 | [2] | ||||
Discontinued operations | (per share) | ¥ 122.18 | [2] | $ 18.72 | ¥ 51.13 | [2] | ¥ 15.88 | [2] | ||||
[1] | (1) In calculation of diluted net income per share, assuming a dilutive effect, all of Huya’s existing unvested restricted share units and unexercised share options are treated as vested and exercised by Huya under the treasury stock method, causing the decrease percentage of the weighted average number of shares held by the Company in Huya. As a result, Huya’s net income (loss) attributable to the Company on a diluted basis decreased accordingly, which is presented as “incremental dilution from Huya” in the table. | ||||||||||
[2] | Each ADS represents 20 common shares. |
Basic and diluted net income _4
Basic and diluted net income per share (Schedule of shares outstanding were excluded from the calculation of diluted net (loss) income per share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 10,307,400 | 10,307,400 | |
Restricted share units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 72,652,890 | 27,113,132 | |
Restricted share | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 26,420,365 | 38,204,251 | |
Convertible bonds | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 210,568,000 | 208,542,000 | 180,668 |
Related party transactions - Sc
Related party transactions - Schedule of Significant Related Party Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related party transactions [Line Items] | |||
Disposal of investments to related parties | ¥ 140,132 | ¥ 0 | ¥ 0 |
Loan to related parties | 5,000 | 170,000 | 188,000 |
Payment on behalf of related parties, net of repayments | 2,317 | (12,261) | (2,543) |
Repayment of loans from related parties | 0 | 0 | 20,000 |
Online games revenue [Member] | |||
Related party transactions [Line Items] | |||
Revenue shared from related parties | 0 | 3,588 | 31,366 |
Guangzhou Sunhongs | Bandwidth service [Member] | |||
Related party transactions [Line Items] | |||
Expense with related party | 98,364 | 92,553 | 92,454 |
Other Related Party [Member] | |||
Related party transactions [Line Items] | |||
Others | 5,874 | 13,878 | 9,626 |
Related parties | |||
Related party transactions [Line Items] | |||
Expense with related party | 17,511 | 25,534 | 57 |
Kingsoft Cloud | |||
Related party transactions [Line Items] | |||
Purchase of fixed assets from Kingsoft Cloud | 2,952 | 16,776 | 0 |
Kingsoft Cloud | Bandwidth service [Member] | |||
Related party transactions [Line Items] | |||
Expense with related party | ¥ 14,694 | ¥ 11,899 | ¥ 2,106 |
Related party transactions - _2
Related party transactions - Schedule of Amounts Due from/to Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Related party transactions [Line Items] | |||
Amounts due from related parties, current | ¥ 3,986 | $ 611 | ¥ 1,709 |
Amounts due to related parties | 24,941 | $ 3,822 | 205,921 |
Other Related Party [Member] | |||
Related party transactions [Line Items] | |||
Amounts due from related parties, current | 3,986 | 1,709 | |
Amounts due to related parties | 6,699 | 7,943 | |
Shanghai Chuangsi [Member] | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | 5,962 | 176,893 | |
Kingsoft Cloud | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | 1,491 | 641 | |
Xiaomi Group [Member] | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | 3,221 | 11,513 | |
Guangzhou Sunhongs [Member] | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | ¥ 7,568 | ¥ 8,931 |
Fair value measurements - Summa
Fair value measurements - Summary of Liabilities Measured at Fair Value on Recurring Basis (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Assets | |||
Short-term investments (i) | ¥ 3,191,338 | $ 489,094 | ¥ 3,332,331 |
Recurring [Member] | |||
Assets | |||
Short-term investments (i) | 3,191,338 | 3,332,331 | |
Equity investment with readily determinable fair values (ii) | 1,206,899 | 115,926 | |
Derivative - forward exchange contracts | 354 | 6,340 | |
Total | 4,398,591 | 3,454,597 | |
Liabilities | |||
Derivatives - forward exchange contracts | (44,301) | (11,495) | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets | |||
Short-term investments (i) | 810,237 | 372,767 | |
Equity investment with readily determinable fair values (ii) | 1,206,899 | 115,926 | |
Derivative - forward exchange contracts | 0 | ||
Total | 2,017,136 | 488,693 | |
Liabilities | |||
Derivatives - forward exchange contracts | 0 | ||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Short-term investments (i) | 2,381,101 | 2,959,564 | |
Equity investment with readily determinable fair values (ii) | 0 | ||
Derivative - forward exchange contracts | 354 | 6,340 | |
Total | 2,381,455 | 2,965,904 | |
Liabilities | |||
Derivatives - forward exchange contracts | ¥ (44,301) | ¥ (11,495) |
Fair value measurements - Sched
Fair value measurements - Schedule of Changes in Level 3 Instruments (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Liabilities measured at fair value [Line Items] | |
Balance as of January 1, 2020 | ¥ 0 |
Balance as of December 31, 2020 | 6,525 |
Level 3 [Member] | |
Liabilities measured at fair value [Line Items] | |
Balance as of January 1, 2020 | 0 |
Acquisition | 6,525 |
Balance as of December 31, 2020 | ¥ 6,525 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Fair value measurements | ||||
Equity Securities, FV-NI, Gain | ¥ 101,735 | ¥ 2,657,370 | ¥ 1,601,082 | |
Impairment of investments | ¥ 43,861 | $ 6,722 | ¥ 62,334 | ¥ 35,348 |
Commitments and contingencies_2
Commitments and contingencies (Schedule of Future Minimum Payments Under Non-cancellable Operating Leases) (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Future minimum payments under non-cancellable operating leases | |
2021 | ¥ 9,318 |
2022 | 4,707 |
2023 | 1,495 |
Total | ¥ 15,520 |
Commitments and contingencies_3
Commitments and contingencies (Narrative) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and contingencies | ||
Outstanding capital commitments | ¥ 932,898 | ¥ 915,780 |
Dividends (Details)
Dividends (Details) | Mar. 26, 2021$ / shares |
Dividends Payable [Line Items] | |
Dividend per share | $ 0.0255 |
ADS [Member] | |
Dividends Payable [Line Items] | |
Dividend per share | $ 0.51 |
Restricted net assets (Details)
Restricted net assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted net assets | ||
Percentage of after-tax income required to be transferred to statutory general reserve fund | 10.00% | |
Reserve level threshold for mandatory appropriation requirement (as a percent) | 50.00% | |
Restricted net assets | ¥ 6,402,960 | ¥ 6,111,088 |
Segment Reporting (Details)
Segment Reporting (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2020CNY (¥)segment | Dec. 31, 2020USD ($)segment | Dec. 31, 2019CNY (¥)segment | Dec. 31, 2018CNY (¥)segment | |||||
Segment Reporting [Line Items] | ||||||||
Number of operating segments | segment | 2 | 2 | 2 | 1 | ||||
Net revenues | ||||||||
Others | ¥ 706,120 | $ 108,218 | ¥ 908,519 | ¥ 468,001 | ||||
Total net revenues | 13,230,945 | 2,027,731 | 6,239,309 | 829,476 | ||||
Cost of revenues | [1] | (9,509,589) | (1,457,408) | (4,552,658) | (725,701) | |||
Gross profit | 3,721,356 | 570,323 | 1,686,651 | 103,775 | ||||
Operating expenses | ||||||||
Research and development expenses | [1] | (2,096,796) | (321,348) | (1,633,668) | (514,854) | |||
Sales and marketing expenses | (3,484,814) | (534,071) | [1] | (2,794,724) | [1] | (463,953) | [1] | |
General and administrative expenses | (1,016,544) | (155,792) | [1] | (938,219) | [1] | (391,837) | [1] | |
Total operating expenses | (6,598,154) | (1,011,211) | (5,366,611) | (1,370,644) | ||||
Gain on disposal of business | 0 | 0 | 82,699 | 0 | ||||
Other income | 56,111 | 8,599 | 39,306 | 11,904 | ||||
Operating loss | (2,820,687) | (432,289) | (3,557,955) | (1,254,965) | ||||
Interest expense | (522,015) | (80,002) | (266,517) | (8,616) | ||||
Interest income and investment income | 614,014 | 94,102 | 426,631 | 327,438 | ||||
Foreign currency exchange (losses) gains, net | (118,859) | (18,216) | 8,639 | (565) | ||||
Gain on disposal and deemed disposal of investments | 1,897,128 | 290,748 | 0 | 16,178 | ||||
Gain on fair value changes of investment | 1,127,714 | 172,830 | 2,679,312 | 1,487,405 | ||||
Fair value change on derivatives | (42,320) | (6,486) | (16,011) | 0 | ||||
Other non-operating expenses | (17,257) | (2,645) | 0 | (2,000) | ||||
Income (loss) before income tax expenses | 117,718 | 18,042 | (725,901) | 564,875 | ||||
Income tax (expenses) benefits | (192,337) | (29,477) | 141,108 | (67,800) | ||||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | (74,619) | (11,435) | (584,793) | 497,075 | ||||
Share of income (loss) in equity method investments, net of income taxes | (51,759) | (7,932) | 41,315 | 120,636 | ||||
Net income (loss) from continuing operations | (126,378) | (19,367) | (543,478) | 617,711 | ||||
Share-based compensation | 635,976 | 97,468 | 526,076 | 228,134 | ||||
Cost of revenues | ||||||||
Operating expenses | ||||||||
Share-based compensation | 39,910 | 6,116 | 41,006 | 46,373 | ||||
Research and development expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 295,289 | 45,256 | 362,441 | 96,585 | ||||
Sales and marketing expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 9,018 | 1,382 | 5,000 | 1,418 | ||||
General and administrative expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 291,759 | 44,714 | 117,629 | 83,758 | ||||
Live streaming | ||||||||
Net revenues | ||||||||
Total net revenues | 12,524,825 | $ 1,919,513 | 5,330,790 | ¥ 361,475 | ||||
Bigo [Member] | ||||||||
Net revenues | ||||||||
Others | 507,062 | 406,556 | ||||||
Total net revenues | 11,954,283 | 4,968,316 | ||||||
Cost of revenues | (8,330,271) | (3,508,480) | ||||||
Gross profit | 3,624,012 | 1,459,836 | ||||||
Operating expenses | ||||||||
Research and development expenses | (1,343,893) | (979,153) | ||||||
Sales and marketing expenses | (3,078,226) | (2,058,805) | ||||||
General and administrative expenses | (593,237) | (331,461) | ||||||
Total operating expenses | (5,015,356) | (3,369,419) | ||||||
Gain on disposal of business | 0 | |||||||
Other income | 24,848 | 9,581 | ||||||
Operating loss | (1,366,496) | (1,900,002) | ||||||
Interest expense | (54,632) | (31,956) | ||||||
Interest income and investment income | 1,058 | 2,684 | ||||||
Foreign currency exchange (losses) gains, net | (115,915) | 13,208 | ||||||
Gain on disposal and deemed disposal of investments | 0 | |||||||
Gain on fair value changes of investment | 0 | 0 | ||||||
Fair value change on derivatives | (1,841) | 0 | ||||||
Other non-operating expenses | (6,257) | |||||||
Income (loss) before income tax expenses | (1,544,083) | (1,916,066) | ||||||
Income tax (expenses) benefits | 64,382 | 136,937 | ||||||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | (1,479,701) | (1,779,129) | ||||||
Share of income (loss) in equity method investments, net of income taxes | 0 | 0 | ||||||
Net income (loss) from continuing operations | (1,479,701) | (1,779,129) | ||||||
Bigo [Member] | Cost of revenues | ||||||||
Operating expenses | ||||||||
Share-based compensation | 28,280 | 28,250 | ||||||
Bigo [Member] | Research and development expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 233,928 | 300,297 | ||||||
Bigo [Member] | Sales and marketing expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 4,855 | 4,256 | ||||||
Bigo [Member] | General and administrative expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 230,516 | 32,462 | ||||||
Bigo [Member] | Live streaming | ||||||||
Net revenues | ||||||||
Total net revenues | 11,447,221 | 4,561,760 | ||||||
All other | ||||||||
Net revenues | ||||||||
Others | 199,058 | 501,963 | ||||||
Total net revenues | 1,276,662 | 1,270,993 | ||||||
Cost of revenues | (1,179,318) | (1,044,178) | ||||||
Gross profit | 97,344 | 226,815 | ||||||
Operating expenses | ||||||||
Research and development expenses | (752,903) | (654,515) | ||||||
Sales and marketing expenses | (406,588) | (735,919) | ||||||
General and administrative expenses | (423,307) | (606,758) | ||||||
Total operating expenses | (1,582,798) | (1,997,192) | ||||||
Gain on disposal of business | 82,699 | |||||||
Other income | 31,263 | 29,725 | ||||||
Operating loss | (1,454,191) | (1,657,953) | ||||||
Interest expense | (500,753) | (265,513) | ||||||
Interest income and investment income | 646,326 | 454,899 | ||||||
Foreign currency exchange (losses) gains, net | (2,944) | (4,569) | ||||||
Gain on disposal and deemed disposal of investments | 1,897,128 | |||||||
Gain on fair value changes of investment | 1,127,714 | 2,679,312 | ||||||
Fair value change on derivatives | (40,479) | (16,011) | ||||||
Other non-operating expenses | (11,000) | |||||||
Income (loss) before income tax expenses | 1,661,801 | 1,190,165 | ||||||
Income tax (expenses) benefits | (256,719) | 4,171 | ||||||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | 1,405,082 | 1,194,336 | ||||||
Share of income (loss) in equity method investments, net of income taxes | (51,759) | 41,315 | ||||||
Net income (loss) from continuing operations | 1,353,323 | 1,235,651 | ||||||
All other | Cost of revenues | ||||||||
Operating expenses | ||||||||
Share-based compensation | 11,630 | 12,756 | ||||||
All other | Research and development expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 61,361 | 62,144 | ||||||
All other | Sales and marketing expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 4,163 | 744 | ||||||
All other | General and administrative expenses | ||||||||
Operating expenses | ||||||||
Share-based compensation | 61,243 | 85,167 | ||||||
All other | Live streaming | ||||||||
Net revenues | ||||||||
Total net revenues | 1,077,604 | 769,030 | ||||||
Elimination | ||||||||
Net revenues | ||||||||
Others | 0 | 0 | ||||||
Total net revenues | 0 | 0 | ||||||
Cost of revenues | 0 | 0 | ||||||
Gross profit | 0 | 0 | ||||||
Operating expenses | ||||||||
Research and development expenses | 0 | 0 | ||||||
Sales and marketing expenses | 0 | 0 | ||||||
General and administrative expenses | 0 | 0 | ||||||
Total operating expenses | 0 | 0 | ||||||
Gain on disposal of business | 0 | |||||||
Other income | 0 | 0 | ||||||
Operating loss | 0 | 0 | ||||||
Interest expense | 33,370 | 30,952 | ||||||
Interest income and investment income | (33,370) | (30,952) | ||||||
Foreign currency exchange (losses) gains, net | 0 | 0 | ||||||
Gain on disposal and deemed disposal of investments | 0 | |||||||
Gain on fair value changes of investment | 0 | 0 | ||||||
Fair value change on derivatives | 0 | 0 | ||||||
Other non-operating expenses | 0 | |||||||
Income (loss) before income tax expenses | 0 | 0 | ||||||
Income tax (expenses) benefits | 0 | 0 | ||||||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | 0 | 0 | ||||||
Share of income (loss) in equity method investments, net of income taxes | 0 | 0 | ||||||
Net income (loss) from continuing operations | 0 | 0 | ||||||
Elimination | Live streaming | ||||||||
Net revenues | ||||||||
Total net revenues | ¥ 0 | ¥ 0 | ||||||
[1] | Share-based compensation was allocated in cost of revenues and operating expenses as follows |
Segment Reporting - Property an
Segment Reporting - Property and equipment for the companys geographic operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | ¥ 13,230,945 | $ 2,027,731 | ¥ 6,239,309 | ¥ 829,476 |
PRC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 2,505,034 | 2,052,372 | 827,717 | |
Property and equipment, net | 1,607,248 | 1,321,640 | ||
Developed countries | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 4,211,648 | 1,437,030 | 0 | |
Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 3,293,244 | 1,267,592 | 0 | |
Southeast Asia and others | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 3,221,019 | 1,482,315 | ¥ 1,759 | |
Non-PRC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | ¥ 1,013,549 | ¥ 757,444 |