Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Entity Registrant Name | Bilibili Inc. |
Entity Central Index Key | 0001723690 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Document Transition Report | false |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Document Shell Company Report | false |
Entity File Number | 001-38429 |
Entity Incorporation, State or Country Code | E9 |
Document Registration Statement | false |
Entity Address, Address Line One | Building 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200433 |
Entity Address, Country | CN |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Xin Fan |
Entity Address, Address Line One | Building 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200433 |
Entity Address, Country | CN |
Country Region | 86 |
City Area Code | 21 |
Local Phone Number | 25099255 |
Contact Personnel Email Address | sam@bilibili.com |
Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 328,116,155 |
Class Z Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 242,751,341 |
Common Stock, Capital Shares Reserved for Future Issuance | 4,478,893 |
Title of 12(b) Security | Class Z ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Class Y Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 85,364,814 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing one Class Z ordinary share |
Security Exchange Name | NASDAQ |
Trading Symbol | BILI |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) |
Current assets: | ||||
Cash and cash equivalents | ¥ 4,962,660 | $ 712,842 | ¥ 3,540,031 | $ 508,494 |
Time deposits | 1,844,558 | 264,954 | 749,385 | |
Accounts receivable, net | 744,845 | 106,990 | 324,392 | |
Receivables due from related parties | 195,290 | 28,052 | ||
Prepayments and other current assets | 1,315,901 | 189,017 | 990,851 | |
Short-term investments | 1,260,810 | 181,104 | 945,338 | |
Total current assets | 10,324,064 | 1,482,959 | 6,549,997 | |
Non-current assets: | ||||
Property and equipment, net | 516,087 | 74,131 | 394,898 | |
Production cost, net | 443,533 | 63,710 | 204,231 | |
Intangible assets, net | 1,657,333 | 238,061 | 1,419,435 | |
Deferred tax assets | 10,479 | 1,505 | ||
Goodwill | 1,012,026 | 145,368 | 941,488 | |
Long-term investments, net | 1,251,129 | 179,713 | 979,987 | |
Other long-term assets | 301,916 | 43,368 | ||
Total non-current assets | 5,192,503 | 745,856 | 3,940,039 | |
Total assets | 15,516,567 | 2,228,815 | 10,490,036 | |
Current liabilities: | ||||
Accounts payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB1,078.1 million and RMB1,454.9 million as of December 31, 2018 and 2019, respectively) | 1,904,042 | 273,499 | 1,307,598 | |
Salary and welfare payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB94.7 million and RMB128.3 million as of December 31, 2018 and 2019, respectively) | 355,936 | 51,127 | 246,815 | |
Taxes payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB27.2 million and RMB33.6 million as of December 31, 2018 and 2019, respectively) | 67,856 | 9,747 | 38,505 | |
Deferred revenue (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB937.1 million and RMB1,234.5 million as of December 31, 2018 and 2019, respectively) | 1,369,000 | 196,645 | 985,143 | |
Accrued liabilities and other payables (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB318.6 million and RMB222.1 million as of December 31, 2018 and 2019, respectively) | 575,763 | 82,702 | 670,442 | |
Amount due to related parties (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB23.1 million and nil as of December 31, 2018 and 2019, respectively) | 0 | 50,331 | ||
Total current liabilities | 4,272,597 | 613,720 | 3,298,834 | |
Non-current liabilities: | ||||
Long-term debt | 3,414,628 | 490,481 | ||
Other long-term liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiary of nil and RMB23.1 million as of December 31, 2018 and 2019, respectively) | 192,882 | 27,704 | ||
Total non-current liabilities | 3,607,510 | 518,185 | ||
Total liabilities | 7,880,107 | 1,131,905 | 3,298,834 | |
Commitments and contingencies | ||||
Shareholder's equity | ||||
Ordinary shares | 1,647,711 | |||
Additional paid-in capital | 10,718,190 | 1,539,572 | 9,459,546 | |
Statutory reserves | 13,463 | 1,934 | 7,666 | |
Accumulated other comprehensive income | 466,229 | 66,970 | 326,077 | |
Accumulated deficit | (4,145,606) | (595,479) | (2,842,690) | |
Total Bilibili Inc.'s shareholders' equity | 7,052,484 | 1,013,027 | 6,950,796 | |
Noncontrolling interests | 583,976 | 83,883 | 240,406 | |
Total shareholders' equity | 7,636,460 | 1,096,910 | 7,191,202 | |
Total liabilities and shareholders' equity | 15,516,567 | 2,228,815 | 10,490,036 | |
Class Y Ordinary Shares | ||||
Shareholder's equity | ||||
Ordinary shares | 53 | 8 | 53 | |
Class Z Ordinary Shares | ||||
Shareholder's equity | ||||
Ordinary shares | ¥ 155 | $ 22 | ¥ 144 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares |
Current liabilities: | |||
Accounts payable | ¥ 1,904,042,000 | $ 273,499 | ¥ 1,307,598,000 |
Salary and welfare payable | 355,936,000 | 51,127 | 246,815,000 |
Taxes payable | 67,856,000 | 9,747 | 38,505,000 |
Deferred revenue | 1,369,000,000 | 196,645 | 985,143,000 |
Accrued liabilities and other payables | 575,763,000 | $ 82,702 | 670,442,000 |
Amount due to related parties | ¥ 0 | ¥ 50,331,000 | |
Class Y Ordinary Shares | |||
Ordinary shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Ordinary shares, authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 |
Ordinary shares, issued | shares | 85,364,814 | 85,364,814 | 85,364,814 |
Ordinary shares, outstanding | shares | 85,364,814 | 85,364,814 | 85,364,814 |
Class Z Ordinary Shares | |||
Ordinary shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Ordinary shares, authorized | shares | 9,800,000,000 | 9,800,000,000 | 9,800,000,000 |
Ordinary shares, issued | shares | 247,230,234 | 247,230,234 | 229,056,421 |
Ordinary shares, outstanding | shares | 242,751,341 | 242,751,341 | 226,323,075 |
Consolidated VIEs without recourse to the primary beneficiary | |||
Current liabilities: | |||
Accounts payable | ¥ 1,454,924,000 | ¥ 1,078,070,000 | |
Salary and welfare payable | 128,343,000 | 94,699,000 | |
Taxes payable | 33,611,000 | 27,152,000 | |
Deferred revenue | 1,234,508,000 | 937,086,000 | |
Accrued liabilities and other payables | 222,078,000 | 318,568,000 | |
Amount due to related parties | 0 | 23,100,000 | |
Consolidated VIEs without recourse to the primary beneficiary | |||
Non-current liabilities: | |||
Other long-term liabilities | ¥ 23,100,000 | ¥ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Net revenues | ¥ 6,777,922 | $ 973,588 | ¥ 4,128,931 | ¥ 2,468,449 |
Cost of revenues | (5,587,673) | (802,619) | (3,273,493) | (1,919,241) |
Gross profit | 1,190,249 | 170,969 | 855,438 | 549,208 |
Operating expenses: | ||||
Sales and marketing expenses | (1,198,516) | (172,156) | (585,758) | (232,489) |
General and administrative expenses | (592,497) | (85,107) | (461,165) | (260,898) |
Research and development expenses | (894,411) | (128,474) | (537,488) | (280,093) |
Total operating expenses | (2,685,424) | (385,737) | (1,584,411) | (773,480) |
Loss from operations | (1,495,175) | (214,768) | (728,973) | (224,272) |
Other income/(expenses): | ||||
Investment income, net (including impairments) | 96,610 | 13,877 | 96,440 | 22,957 |
Interest income | 162,782 | 23,382 | 68,706 | 1,483 |
Interest expense | (46,543) | (6,685) | ||
Exchange gains/(losses) | (11,789) | (1,693) | (1,661) | 6,445 |
Others, net | 26,412 | 3,794 | 26,455 | 18,518 |
Loss before tax | (1,267,703) | (182,093) | (539,033) | (174,869) |
Income tax | (35,867) | (5,152) | (25,988) | (8,881) |
Net loss | (1,303,570) | (187,245) | (565,021) | (183,750) |
Accretion to Pre-IPO Preferred Shares redemption value | ¥ | (64,605) | (258,554) | ||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | ¥ | (129,244) | |||
Net loss attributable to noncontrolling interests | 14,597 | 2,097 | 13,301 | |
Net loss attributable to the Bilibili Inc.'s shareholders | (1,288,973) | (185,148) | (616,325) | (571,548) |
Net loss | (1,303,570) | (187,245) | (565,021) | (183,750) |
Other comprehensive (loss)/income : | ||||
Foreign currency translation adjustments | 140,152 | 20,132 | 296,030 | (75,695) |
Total other comprehensive (loss)/income | 140,152 | 20,132 | 296,030 | (75,695) |
Total comprehensive loss | (1,163,418) | (167,113) | (268,991) | (259,445) |
Accretion to Pre-IPO Preferred Shares redemption value | ¥ | (64,605) | (258,554) | ||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | ¥ | (129,244) | |||
Net loss attributable to noncontrolling interests | 14,597 | 2,097 | 13,301 | |
Comprehensive loss attributable to the Bilibili Inc.'s shareholders | ¥ (1,148,821) | $ (165,016) | ¥ (320,295) | ¥ (647,243) |
Net loss per share/ADS, basic | (per share) | ¥ (3.99) | $ (0.57) | ¥ (2.64) | ¥ (8.17) |
Net loss per share/ADS, diluted | (per share) | ¥ (3.99) | $ (0.57) | ¥ (2.64) | ¥ (8.17) |
Weighted average number of ordinary shares/ADSs, basic | shares | 323,161,680 | 323,161,680 | 233,047,703 | 69,938,570 |
Weighted average number of ordinary shares/ADSs, diluted | shares | 323,161,680 | 323,161,680 | 233,047,703 | 69,938,570 |
Cost of revenues | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 23,281 | $ 3,344 | ¥ 28,173 | ¥ 7,936 |
Sales and marketing expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 14,269 | 2,050 | 11,499 | 3,423 |
General and administrative expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 68,497 | 9,839 | 102,544 | 56,746 |
Research and development expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 66,503 | $ 9,553 | ¥ 38,977 | ¥ 11,849 |
ADSs | ||||
Other comprehensive (loss)/income : | ||||
Net loss per share/ADS, basic | (per share) | ¥ (3.99) | $ (0.57) | ¥ (2.64) | |
Net loss per share/ADS, diluted | (per share) | ¥ (3.99) | $ (0.57) | ¥ (2.64) | |
Weighted average number of ordinary shares/ADSs, basic | shares | 323,161,680 | 323,161,680 | 233,047,703 | |
Weighted average number of ordinary shares/ADSs, diluted | shares | 323,161,680 | 323,161,680 | 233,047,703 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Class Y Ordinary SharesCNY (¥)shares | Class Z Ordinary SharesCNY (¥)shares | Ordinary sharesClass Y Ordinary SharesCNY (¥)shares | Ordinary sharesClass Z Ordinary SharesCNY (¥)shares | Ordinary sharesPre-IPO Class A Ordinary SharesCNY (¥)shares | Other permanent equitiesPre-IPO Class B Ordinary SharesCNY (¥)shares | Other permanent equitiesPre-IPO Class C Ordinary SharesCNY (¥)shares | Other permanent equitiesPre-IPO Class D Ordinary SharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Statutory reservesCNY (¥) | Accumulated other comprehensive incomeCNY (¥) | Accumulated deficitCNY (¥) | Noncontrolling interestsCNY (¥) |
Balance at the beginning of the year at Dec. 31, 2016 | ¥ (1,323,003) | ¥ 46 | ¥ 16,356 | ¥ 16,944 | ¥ 6,911 | ¥ 307,036 | ¥ 1,595 | ¥ 105,742 | ¥ (1,777,990) | ¥ 357 | |||||
Balance at the beginning of the year (Shares) at Dec. 31, 2016 | shares | 71,136,926 | 13,600,000 | 8,500,000 | 2,132,353 | |||||||||||
Net loss | (183,750) | (183,750) | |||||||||||||
Share-based compensation | 69,480 | 69,480 | |||||||||||||
Repurchase of Pre-IPO Class A Ordinary Shares | (49,086) | ¥ (1) | (49,085) | ||||||||||||
Repurchase of Pre-IPO Class A Ordinary Shares (in shares) | shares | (1,154,643) | ||||||||||||||
Redesignation of Pre-IPO Class A Ordinary Shares to Pre-IPO Series D1 Preferred Shares | ¥ (17,003) | (17,003) | |||||||||||||
Redesignation of Pre-IPO Class A Ordinary Shares to Pre-IPO Series D1 Preferred Shares (in shares) | shares | (645,357) | (645,357) | (645,357) | ||||||||||||
Redesignation of Pre-IPO Series C Preferred Shares to Pre-IPO Series D1 Preferred Shares | ¥ (129,244) | (129,244) | |||||||||||||
Pre-IPO Preferred Shares redemption value accretion | (258,554) | (258,554) | |||||||||||||
Purchase of noncontrolling interests | (2,689) | (2,332) | (357) | ||||||||||||
Spin off transactions | 30,032 | 30,032 | |||||||||||||
Appropriation to statutory reserves | 2,480 | (2,480) | |||||||||||||
Foreign currency translation adjustments | (75,695) | (75,695) | |||||||||||||
Balance at the end of the year at Dec. 31, 2017 | (1,939,512) | ¥ 45 | ¥ 16,356 | ¥ 16,944 | ¥ 6,911 | 208,884 | 4,075 | 30,047 | (2,222,774) | ||||||
Balance at the end of the year (Shares) at Dec. 31, 2017 | shares | 69,336,926 | 13,600,000 | 8,500,000 | 2,132,353 | |||||||||||
Net loss | (565,021) | (551,720) | (13,301) | ||||||||||||
Share-based compensation | 181,193 | 178,343 | 2,850 | ||||||||||||
Share issuance upon initial public offering and followed offering, net of issuance costs of US$6,333 | 4,952,606 | ¥ 43 | 4,952,563 | ||||||||||||
Share issuance upon initial public offering and followed offering, net of issuance costs of US$6,333 (in shares) | shares | 67,063,451 | ||||||||||||||
Redesignation of Pre-IPO Ordinary Shares into Class Y and Class Z Ordinary Shares upon initial public offering | ¥ 52 | ¥ 6 | ¥ (45) | ¥ (16,356) | ¥ (16,944) | ¥ (6,911) | 40,198 | ||||||||
Redesignation of Pre-IPO Ordinary Shares into Class Y and Class Z Ordinary Shares upon initial public offering (in shares) | shares | 84,260,279 | 9,309,000 | (69,336,926) | (13,600,000) | (8,500,000) | (2,132,353) | |||||||||
Redesignation of Pre-IPO Preferred Shares into Class Y and Class Z Ordinary Shares upon initial public offering | 4,079,648 | ¥ 1 | ¥ 89 | 4,079,558 | |||||||||||
Redesignation of Pre-IPO Preferred Shares into Class Y and Class Z Ordinary Shares upon initial public offering (in shares) | shares | 1,104,535 | 141,808,970 | |||||||||||||
Pre-IPO Preferred Shares redemption value accretion | (64,605) | (64,605) | |||||||||||||
Capital injection in subsidiaries by noncontrolling interests | 22,198 | 22,198 | |||||||||||||
Acquisitions of a subsidiary | 228,659 | 228,659 | |||||||||||||
Share issuance from exercise of share options | ¥ 6 | ¥ 6 | |||||||||||||
Share issuance from exercise of share options (in shares) | shares | 8,142,000 | 8,142,000 | 8,141,654 | ||||||||||||
Appropriation to statutory reserves | 3,591 | (3,591) | |||||||||||||
Foreign currency translation adjustments | ¥ 296,030 | 296,030 | |||||||||||||
Balance at the end of the year at Dec. 31, 2018 | 7,191,202 | ¥ 53 | ¥ 144 | 9,459,546 | 7,666 | 326,077 | (2,842,690) | 240,406 | |||||||
Balance at the end of the year (Shares) at Dec. 31, 2018 | shares | 85,364,814 | 226,323,075 | |||||||||||||
Net loss | (1,303,570) | $ (187,245) | (1,288,973) | (14,597) | |||||||||||
Share-based compensation | 172,550 | 172,550 | |||||||||||||
Issuance of ordinary shares, net of issuance costs of US$9,376 at Dec. 31, 2018 | 1,647,711 | ¥ 53 | ¥ 144 | ¥ 10 | 1,647,701 | ||||||||||
Issuance of ordinary shares, net of issuance costs of US$9,376 (in shares) at Dec. 31, 2018 | shares | 85,364,814 | 229,056,421 | 14,173,813 | ||||||||||||
Acquisitions of a subsidiary | 30,000 | 30,000 | |||||||||||||
Consolidation of an entity under common control | (70,161) | (488,463) | (8,146) | 426,448 | |||||||||||
Purchase of noncontrolling interests | (175,624) | (73,144) | (102,480) | ||||||||||||
Share issuance from exercise of share options | ¥ 1 | ¥ 1 | |||||||||||||
Share issuance from exercise of share options (in shares) | shares | 2,255,000 | 2,255,000 | 2,254,453 | ||||||||||||
Deconsolidation of a subsidiary | ¥ 4,199 | 4,199 | |||||||||||||
Appropriation to statutory reserves | 5,797 | (5,797) | |||||||||||||
Foreign currency translation adjustments | 140,152 | $ 20,132 | 140,152 | ||||||||||||
Balance at the end of the year at Dec. 31, 2019 | ¥ 7,636,460 | $ 1,096,910 | ¥ 53 | ¥ 155 | ¥ 10,718,190 | ¥ 13,463 | ¥ 466,229 | ¥ (4,145,606) | ¥ 583,976 | ||||||
Balance at the end of the year (Shares) at Dec. 31, 2019 | shares | 85,364,814 | 242,751,341 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance costs | $ 9,376 | $ 6,333 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (1,303,570) | $ (187,245) | ¥ (565,021) | ¥ (183,750) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation of property and equipment | 191,784 | 27,548 | 99,714 | 38,356 |
Amortization of intangible assets | 905,613 | 130,083 | 542,731 | 266,042 |
Amortization of the right-of-use assets | 70,712 | 10,157 | ||
Amortization of debt issuance costs | 9,117 | 1,310 | ||
Share-based compensation expenses | 172,550 | 24,786 | 181,193 | 79,954 |
Allowance for doubtful accounts | 9,396 | 1,350 | 10,904 | 2,716 |
Inventory provision | 5,987 | 860 | ||
Deferred income taxes | (10,479) | (1,505) | ||
Unrealized exchange (gains)/losses | 2,636 | 379 | 497 | (115) |
Unrealized fair value changes of short-term investments | 17,939 | 2,577 | (1,799) | (12,523) |
Fair value changes of long-term investments | 18,444 | 2,649 | 2,072 | |
Gain on disposal of long-term investments and subsidiaries | (148,776) | (21,371) | ||
Loss from equity method investments, net of dividends received | 24,173 | 3,472 | ||
Revaluation of previously held equity interests | (144,434) | |||
Impairments of long-term investments | 5,900 | 847 | 46,375 | 15,989 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (398,968) | (57,308) | 65,612 | (283,218) |
Receivables due from related parties | 7,382 | 1,060 | 35,118 | (24,660) |
Prepayments and other assets | (508,515) | (73,044) | (540,647) | (247,492) |
Other long-term assets | (360,497) | (51,782) | ||
Accounts payable | 586,864 | 84,298 | 345,917 | 271,893 |
Salary and welfare payable | 101,788 | 14,621 | 95,452 | 91,402 |
Taxes payable | 23,114 | 3,320 | 13,708 | 13,514 |
Amount due to related parties | (50,331) | (7,230) | 44,607 | 5,724 |
Deferred revenue | 353,997 | 50,848 | 398,623 | 356,413 |
Accrued liabilities and other payables | 277,875 | 39,914 | 106,664 | 74,305 |
Other long-term liabilities | 190,416 | 27,352 | ||
Net cash provided by operating activities | 194,551 | 27,946 | 737,286 | 464,550 |
Cash flows from investing activities: | ||||
Purchase of property and equipment | (296,044) | (42,524) | (293,566) | (144,906) |
Purchase of intangible assets | (1,268,830) | (182,256) | (1,040,125) | (485,912) |
Purchase of short-term investments | (9,973,879) | (1,432,658) | (6,666,731) | (4,708,514) |
Maturities of short-term investments | 9,993,525 | 1,435,480 | 6,252,151 | 4,932,376 |
Cash consideration paid for purchase of subsidiaries, net of cash acquired | (719,909) | (103,408) | (135,822) | |
Cash paid for long-term investments including loans | (1,226,794) | (176,218) | (565,137) | (320,088) |
Repayment of loans from investees | 11,000 | 1,580 | ||
Cash received from disposal of long-term investments | 566,554 | 81,380 | 1,250 | 12,750 |
Impact to cash resulting from deconsolidation of subsidiary | (959) | (137) | ||
Placements of time deposits | (4,920,099) | (706,728) | (750,473) | (1,960) |
Maturities of time deposits | 3,877,158 | 556,919 | 2,059 | |
Net cash used in investing activities | (3,958,277) | (568,570) | (3,196,394) | (716,254) |
Cash flows from financing activities: | ||||
Proceeds of short-term loans | 141,857 | 20,376 | 9,000 | |
Repayment of short-term loans | (100,000) | (14,364) | ||
Repurchase of Pre-IPO Ordinary Shares | (49,086) | |||
Repurchase of noncontrolling interests | (121,325) | (17,427) | (2,689) | |
Capital injections from noncontrolling interests | 154,492 | 22,191 | 22,198 | |
Proceeds from exercise of employees' share options | 1 | 6 | ||
Proceeds from issuance of ordinary shares, net of issuance costs of US$6,333 and US$9,376, respectively | 1,647,711 | 236,679 | 4,952,606 | |
Cash and cash equivalents of disposed business in connection with the spin-off transaction | (19,847) | |||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$11,805 | 3,356,106 | 482,075 | ||
Net cash provided by financing activities | 5,078,842 | 729,530 | 4,974,810 | 675,533 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | 107,513 | 15,442 | 261,447 | (48,145) |
Net increase in cash and cash equivalents and restricted cash | 1,422,629 | 204,348 | 2,777,149 | 375,684 |
Cash and cash equivalents and restricted cash at beginning of the year | 3,540,031 | 508,494 | 762,882 | 387,198 |
Cash and cash equivalents at beginning of the year | 3,540,031 | 508,494 | 762,882 | 387,198 |
Restricted cash at beginning of the year | 0 | |||
Cash and cash equivalents and restricted cash at end of the year | 4,962,660 | 712,842 | 3,540,031 | 762,882 |
Cash and cash equivalents at end of the year | 4,962,660 | 712,842 | 3,540,031 | 762,882 |
Restricted cash at end of the year | 0 | 0 | ||
Supplemental disclosures of cash flows information: | ||||
Cash paid for income taxes, net of tax refund | 33,734 | 4,846 | 15,765 | 6,196 |
Cash paid for interest expense | 26,203 | 3,764 | ||
Supplemental schedule of non-cash investing and financing activities: | ||||
Accretion to Pre-IPO Preferred Shares redemption value | 64,605 | 258,554 | ||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | 129,244 | |||
Fixed assets purchases financed by accounts payable | 55,759 | 8,009 | 40,277 | 30,050 |
Acquisitions and investments financed by accrued liabilities and other payables | 79,059 | 11,356 | 502,279 | 6,534 |
Intangible assets purchases financed by accounts payable | ¥ 365,187 | $ 52,456 | ¥ 415,780 | 70,726 |
Pre-IPO Series D1 Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of Preferred Shares, net of nil issuance costs | 49,086 | |||
Pre-IPO Series D2 Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of Preferred Shares, net of nil issuance costs | ¥ 689,069 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | |
Proceeds from issuance of ordinary shares, net of issuance costs | $ 9,376 | $ 6,333 | |
Payment of debt issuance costs | 11,805 | ||
Pre-IPO Series D1 Preferred Shares | |||
Proceeds from issuance of ordinary shares, net of issuance costs | ¥ | ¥ 0 | ||
Pre-IPO Series D2 Preferred Shares | |||
Proceeds from issuance of ordinary shares, net of issuance costs | ¥ | ¥ 0 | ||
Ordinary shares | |||
Proceeds from issuance of ordinary shares, net of issuance costs | $ 9,376 | $ 6,333 |
Operations and Reorganization
Operations and Reorganization | 12 Months Ended |
Dec. 31, 2019 | |
Operations and Reorganization | |
Operations and Reorganization | 1. Operations and Reorganization Bilibili Inc. (the “Company” or “Bilibili”) is an online entertainment platform for young generations. The Company, through its consolidated subsidiaries, variable interest entities (“VIEs”) and subsidiaries of the VIEs (collectively referred to as the “Group”), is primarily engaged in the operation of providing online entertainment services to users in the People’s Republic of China (the “PRC” or “China”) . As of December 31, 2019, the Company’s major subsidiaries, VIEs and subsidiaries of the VIEs are as follows: Major Subsidiaries Place and Year of Incorporation Percentage Direct or Indirect Economic Principal Activities Bilibili HK Limited Hong Kong Y2014 100 Investment holding Hode HK Limited Hong Kong Y2014 100 Investment holding Bilibili Co., Ltd. Japan Y2014 100 Business development Hode Shanghai Limited. (“Hode Technology”) PRC Y2014 100 Technology development Shanghai Bilibili Technology Co., Ltd. PRC Y2016 100 Technology development Major VIEs and VIEs’ subsidiaries Place and Year of Incorporation Acquisition Percentage Direct Indirect Economic O Principal Activities Shanghai Hode Information Technology Co., Ltd. (“Shanghai Hode”) PRC Y2013 100 Mobile game operation Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) PRC Y2014 100 Video distribution Sharejoy Network Technology Co., Ltd. PRC Y2014 100 Game promotion and marketing Shanghai Hehehe Culture Communication Co., Ltd PRC Y2014 100 Comics distribution Shanghai Anime Tamashi Cultural Media Co., Ltd. PRC Y2015 100 E-commerce History of the Group • Reorganization The Group commenced operations in 2011 and established Shanghai Hode to expand the principal businesses in 2013. Shanghai Hode was founded by several PRC citizens. The Company was incorporated as a limited liability company in the Cayman Islands in December 2013. Through a series of contemplated transactions in October and December 2014, Hode Technology was established to control Shanghai Hode through contractual arrangements (the “Reorganization”). Through these Reorganization transactions, the Group’s business continued to be carried out by Shanghai Hode without changes in control. Accordingly, pursuant to the guidance in ASC 805, Business Combinations • Initial public offering (“IPO”) and followed offering s In April 2018, the Company completed its IPO on the NASDAQ Global Select Market. In the offering, 42,000,000 American depositary shares (“ADSs”), representing 42,000,000 Class Z Ordinary Shares, were issued and sold to the public at a price of US$11.50 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$443.3 million (RMB2,781.8 million) . In October 2018, 25,063,451 ADSs, representing 25,063,451 Class Z Ordinary Shares, were issued and sold to Tencent Holdings Limited (“Tencent”). The net proceeds to the Company from the offering, after deducting offering expenses, were approximately US$317.2 million (RMB2,170.8 million). In April 2019, the Company completed an offering of convertible senior notes due 2026 2026 an a public offering of 14,173,813 ADSs, or the Primary Offering, each representing one Class Z O S 2026 the 733.9 5,003.8 Contractual agreements with major VIEs In order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content services, the Group operates its restricted businesses in the PRC through its VIEs, whose equity interests are held by certain founders of the Group. The Company obtained control over these VIEs by entering into a series of contractual arrangements with the legal shareholders who are also referred to as nominee shareholders. These nominee shareholders are the legal owners of the VIEs. However, the rights of those nominee shareholders have been transferred to the Company through the contractual arrangements. The contractual arrangements that are used to control the VIEs include powers of attorney, exclusive technology consulting and services agreements, equity pledge agreements and exclusive option agreements. Management concluded that the Company, through the contractual arrangements, has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore the Company is the ultimate primary beneficiary of these VIEs. As such, the The following is a summary of the contractual agreements entered into by and among the Company’s relevant subsidiaries, the VIEs, and respective nominee shareholders of the VIEs. Exclusive Technology Consulting and Services Agreements. Company’s relevant subsidiaries and the VIEs, the Company’s relevant subsidiaries has the exclusive Company’s relevant subsidiaries has the exclusive ownership of intellectual property rights created as a result of the performance of this agreement. These VIEs shall pay the Company’s relevant subsidiaries an annual service fee, which is subject to the adjustment by the Company’s relevant subsidiaries at its sole discretion. This agreement will remain effective for a 10-years term and then be automatically renewed, unless the Company’s relevant subsidiaries gives the VIEs a termination notice days before the term ends. Exclusive Option Agreements. Company’s relevant subsidiaries, the VIEs and its nominee shareholders, each of the nominee shareholders of the VIEs irrevocably granted the Company’s relevant subsidiaries an exclusive option to purchase, or have its designated person to purchase, at its discretion, to the extent permitted under PRC law, all or part of their equity interests in the VIEs, and the purchase price shall be the lowest price permitted by applicable PRC law. In addition, the VIEs irrevocably granted the Company’s relevant subsidiaries an exclusive option to purchase, or have its designated person to purchase, at its discretion, to the extent permitted under PRC law, all or part of the VIEs’ assets at the book value of such assets, or at the lowest price permitted by applicable PRC law, whichever is higher. The nominee shareholders of the VIEs undertake that, without the prior written consent of the Company’s relevant subsidiaries, they shall not increase or decrease the registered capital, dispose of its assets, incur any debts or guarantee liabilities, enter into any material purchase agreements, conduct any merger, acquisition or investments, amend its articles of association or provide any loans to third parties. The exclusive option agreements will remain effective until all equity interests in the VIEs held by their nominee shareholders and all assets of the VIEs are transferred or assigned to the Company’s relevant subsidiaries or its designated representatives. Powers of Attorney Company’s relevant subsidiaries or its designated person as his attorney-in-fact Equity Pledge Agreements. Company’s relevant subsidiaries, the VIEs and its nominee shareholders, the nominee shareholders of the VIEs pledged all of their equity interests in the VIEs to guarantee their and the VIEs’ performance of their obligations under the contractual arrangements. In the event of a breach by the VIEs or the VIEs’ shareholders of contractual obligations under these agreements, the Company’s relevant subsidiaries, as pledgee, will be entitled the right to dispose of the pledged equity interests in the VIEs. The nominee shareholders of the VIEs also undertake that, during the term of the equity pledge agreements, they shall not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests. During the term of the equity pledge agreements, the Company’s relevant subsidiaries has the right to receive all of the dividends and profits distributed on the pledged equity interests. The pledge will remain binding until the VIEs and their nominee shareholders discharge all their obligations under the contractual arrangements. Risks in relation to the VIE structure A significant part of the Group’s business is conducted through the VIEs of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of management, the contractual arrangements with the VIEs and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders are also shareholders of the Group and have indicated they will not act contrary to the contractual arrangements. 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 VIE 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. In January 2015, the Ministry of Commerce (“MOFCOM”), released for public comment a proposed PRC law, the Draft Foreign Investment Law, that appeared to include VIEs within the scope of entities that could be considered to be foreign investment enterprises (“FIEs”), that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. The National People’s Congress approved the Foreign Investment Law on March 15, 2019, effective on January 1, 2020. The Foreign Investment Law removes all references to the terms of “de facto control” or “contractual control” as defined in the draft published in 2015. However, the Foreign Investment Law has a catch-all provision under the definition of “foreign investment” which includes investments made by foreign investors in China through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. In the event that the State Council in the future promulgates laws and regulations that deem investments made by foreign investors through contractual arrangements as “foreign investment,” 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 Company’s ability to control the VIEs also depends on the powers of attorney the founders have In addition, if the Group’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing or future PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: • revoke the Group’s business and / or licenses • impose fines on the Group; • confiscate any of the Group’s income that they deem to be obtained through illegal operations; • discontinue or place restrictions or onerous conditions on the Group’s operations • restrict the Group’s right to collect revenues; • shut down the Group’s servers • require the Group to restructure the operations, re-apply • impose additional conditions or requirements with which the Group may not be able to comply; or • 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 believes that the contractual arrangements among each of the VIEs, their respective shareholders and relevant wholly foreign-owned enterprise s The following combined financial information of the Group’s VIEs as of December 31, 2018 and 2019 and for the years ended December 31, 2017, 2018 and 2019 included in the accompanying consolidated financial statements of the Group was December 31, December 31, RMB in thousands Current assets: Cash and cash equivalents 152,295 201,310 Time deposits 10,265 7,674 Accounts receivable, net 130,823 223,438 Amounts due from the Company and its subsidiaries 165,559 127,944 Receivables due from related parties — 170,535 Prepayments and other current assets 841,018 999,780 Short-term 252,943 672,787 Non-current Long-term 843,149 794,549 Other non-current 943,373 1,483,983 Total assets 3,339,425 4,682,000 Current liabilities: Accounts payable 1,078,070 1,454,924 Salary and welfare payable 94,699 128,343 Taxes payable 27,152 33,611 Deferred revenue 937,086 1,234,508 Amounts due to the Company and its subsidiaries 1,594,527 2,650,499 Accrued liabilities and other payables 318,568 222,078 Amount due to related parties 23,054 — Non-current liabilities Other long-term liabilities — 23,108 Total liabilitie s 4,073,156 5,747,071 For the Year Ended December 31, 2017 2018 2019 RMB in thousands Net revenues: Revenue from third parties 2,465,296 3,691,219 6,056,332 Revenue from the Company and its subsidiaries 22,751 443,405 531,830 Net revenues 2,488,047 4,134,624 6,588,162 Net loss (63,088 ) (587,932 ) (448,114 ) For the Year Ended December 31, 2017 2018 2019 RMB in thousands Net cash provided by operating activities 492,063 636,972 271,299 Net cash used in investing activities (632,549 ) (674,483 ) (1,518,931 ) Net cash provided by financing activities 179,707 130,592 1,300,740 In accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there are no assets in the respective VIEs that can be used only to settle obligations of the respective VIEs, except for the registered capital of the VIEs amounting to approximately RMB12.2 million and RMB94.8 million, as of December 31, 2018 and 2019, as well as certain non-distributable There is no VIE in the G Liquidity The Group incurred net losses of RMB183.8 million, RMB565.0 million and RMB1,303.6 million for the years ended December 31, 2017, 2018 and 2019, respectively. Net cash provided by operating activities was RMB464.6 million, RMB737.3 million and RMB 194.6 for non-operational and public offerings of ordinary shares. In 2019, the Company has completed its offering of the 2026 Notes and the US$ million (RMB million), after deducting commissions and offering expenses. Moreover, the Group can adjust the pace of its operation expansion and control the operating expenses. Based on the above considerations, the Group believes the cash and cash equivalents and the operating cash flows are sufficient to meet the cash requirements to fund planned operations and other commitments for at least the next twelve months from the date of the issuance of the consolidated financial statements. The Group’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, 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 the board 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 consolidated VIE is an entity in which the Company’s subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company’s subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. In July 2019, the Group entered into a series of agreements to acquire a controlling interest in Chaodian Inc. (“Chaodian”). At that time, both the Company and Chaodian were controlled by Mr. Rui Chen (the “Controlling Shareholder”). ASC 805-50 c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of the average playing period for paying players, fair value determination and allocation of identifiable assets and liabilities acquired through business combinations, assessment for the impairment of long-lived assets , valuation allowance of deferred tax assets. d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries incorporated in the Cayman Islands and Hong Kong is United States dollars (“US$”). The functional currency of the Company’s subsidiaries incorporated in Japan is Japanese yen. The functional In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC 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 rate for the year. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive (loss)/income on Foreign currency transactions denominated in currencies other than on e) Convenience Translation Translations of balances on f) Fair value measurements Financial instruments Accounting guidance defines fair value as 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 it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes 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. Accounting guidance establishes three levels of inputs that may be used to measure fair value: a. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. b. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. • Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash and cash equivalents, time deposits, accounts receivable, receivables due from related parties, short-term investments, and accounts payable of which the carrying values approximate their fair values. Please see Note 24 for additional information. g) Cash and cash equivalents and time deposits Cash and cash equivalents mainly represent cash on hand, demand on hand . . As of December 31, 2018 and 2019, the Group had approximately RMB377.8 million and RMB1,596.0 million cash and cash equivalents held by its PRC subsidiaries and VIEs, representing 11% and 32% of total cash and cash equivalents of the Group, respectively. Time deposits represent deposits placed with banks with original maturities more than three months but less than one year. As of December 31, 2018 and 2019, there were time deposits denominated in U . . The Group had no other lien arrangements for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2018 and 2019, the Group had no restricted cash balance. h) Inventories, net Inventories, mainly represent products for the Group’s e-commerce o o i) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. 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 on the consolidated statements of operations and comprehensive loss. j) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Purchased intangible assets are initially recognized and measured at fair value. Major identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Licensed copyrights of content shorter of the licensed period or projected useful life of the content License rights of mobile games shorter of the licensed period or projected useful life of mobile games Domain names and others 1 - If expectations of the usefulness of the content are revised downward, the unamortized cost is written down to the estimated net realizable value. A write-down from unamortized cost to a lower estimated net realizable value establishes a new cost basis. k) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event or circumstances change occurs that indicate the asset might be impaired. Under ASC 350-20-35, two-step two-step l) Impairment of long-lived assets other than goodwill and intangible assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected m) Research and development expenses Research and development expenses mainly consist of payroll-related expenses incurred for the innovation of video function, development and enhancement to the Group’s websites and platforms of applications and development of online games. For internal use software, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platforms. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Group’s research and development expenses qualifying for capitalization has been immaterial, as a result, all development costs incurred for development of internal used software have been expensed as incurred. For external use software, costs incurred for development of external use software have not been capitalized since the inception of the Group, because the period after the date technical feasibility is reached and the time when the software is marketed is short historically, and the amount of costs qualifying for capitalization has been immaterial. n Sales and marketing expenses Sales and marketing expenses consist primarily of marketing and promotional expenses, salaries and other compensation-related expenses to the Group’s sales and marketing personnel. Marketing and promotional marketing and promot ion years marketing and promotional o) Leases On January 1, 2019, the Group adopted ASU No. 2016-02, Leases (Topic 842) right-of-use The Group elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease Right-of-use As a result of the adoption, the Group recognized approximately RMB235.7 million of right-of-use respectively The Group leases office space and staff quarters under non-cancelable 2024 the Group’s 3.2 4.75%. December 31, 2019 RMB in thousands 2020 93,741 2021 100,109 2022 89,399 2023 28,643 2024 357 Total future lease payments 312,249 Impact of discounting remaining lease payments (23,298) Total lease liabilities 288,951 Rent expense under operating leases was RMB55.0 million and for the years ended December 31, 2017 and 2018, respectively. Operating lease cost for the year ended December 31, 2019 was RMB 79.4 related For the Year Ended December 31, 2019 RMB in thousands Cash payments for operating leases 67,535 Right-of-use assets obtained in exchange for operating lease liabilities 96,692 Future lease payments under leases Operating Leases* RMB in thousands 2019 65,400 2020 72,230 2021 73,054 2022 69,681 Beyond 2022 19,544 * Amounts are based on ASC 840, Leases Leases p Share-based compensation Share based compensation expenses arise from share-based awards, including share options for the purchase of the Company’s ordinary shares. The Group accounts for share-based awards granted to employees in accordance with ASC 718 Compensation - Stock Compensation 2018-07, Compensation—Stock Compensation (Topic 718): Improvement to Nonemployee Share-based Payment Accounting 2018-07, non-employees For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rates and expected dividends. For share options granted with service conditions only, share-based compensation expenses are recorded net of estimated forfeitures using straight-line method during the requisite service period, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. For share options granted with service condition and the occurrence of an IPO as performance condition, share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the requisite service period. Cumulative share-based compensation expenses for the options that have satisfied the service condition, amounting to RMB28.9 million, were recorded upon the completion of the IPO in 2018 q Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. r Investments Short-term investments Short-term investments primarily include money market funds, financial products with variable interest rates referenced to performance of underlying assets issued by commercial banks or other financial institutions and publicly traded companies with the intention to be sold within twelve In accordance with ASC 825, Financial Instruments on For the investments in publicly traded companies, the Group carries the investments at fair value at the end of each reporting period. Changes in the fair value of these investments are reflected on Long-term investments, net The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the Equity investments accounted for using the measurement alternative For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group records them at cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities Management regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized equal to the excess of the investment cost over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Equity investments accounted for using the equity method The Group applies the equity method of accounting to account for equity investments and limited partnership in a private equity fund, according to ASC 323 Investment—Equity Method and Joint Ventures and cash distributions from investees, Investments accounted for at fair value In accordance with ASC 825, Financial Instruments s) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the assets and liabilities 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 purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of operations and comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not portion Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more-likely-than-not two-step more-likely-than-not its following t Revenue recognition On January 1, 2018, the Group adopted ASC 606, Revenue from Contracts with Customers Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. The adoption of ASC 606 did not significantly change (1) the timing and pattern of revenue recognition for all of the Group’s revenue streams, and (2) the presentation of revenue as gross versus net. Therefore, the adoption of ASC 606 did not have a significant impact on the Group’s financial position, results of operations, equity or cash flows as of the adoption date and for the year s 2018 and The Group’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Mobile game services Exclusively distributed mobile games For the years ended December 31, 2017, 2018 and 2019, the Group primarily generates revenues from the sale of in-game In accordance with ASC 606, the Group evaluates the contracts with its customers and determines that the Group has a single combined performance obligation which is to make the game and the ongoing game related services available to the paying players. The transaction price, which is the amount paid for in-game in-game point-in-time in-game The Group has estimated the average playing period of the paying players for each game, usually between three to seven months. The Group considers the average period that players typically play the games and other game player behavior patterns, as well as various other factors to arrive at the best estimates for the estimated playing period of the paying players. To compute the estimated average playing period for paying players, the Group considers the initial purchase date as the starting point of a player’s lifespan. The Group tracks populations of paying players who made their initial purchases during the interval period (the “Cohort”) and tracks each Cohort to understand the subsequent churn rate of the paying players of each Cohort, i.e. the number of players from each Cohort who left subsequent to their initial purchases. To determine the ending point of a paying player’s lifespan beyond the date for which observable data are available, the Group extrapolates the actual observed churn rate to arrive at an estimated weighted average playing lifespan for paying players of the selected games. If a new game is launched and only a limited period of paying player data is available, then the Group considers other qualitative factors, such as the playing patterns for paying players for other games with similar characteristics with the new game, including paying player type and purchasing frequency. While the Group believes its estimates to be reasonable based on available game player information, the Group may revise such estimates based on new information indicating a change in the game player behavior patterns and any adjustments are applied prospectively. In accordance with ASC 606-10-55-39, exclusively in-game in-game Proceeds earned from selling in-game channels channels statements and Jointly operated mobile game distribution services The Group is also offering distribution services for mobile games developed by third-party game developers. In accordance with ASC 606, the Group evaluates the contracts with the third-party game developers and identifies the performance obligations as distributing games and providing payment solution and market promotion service to the game developers. Accordingly, the Group earns service revenue by distributing them to the game players. In accordance with ASC 606-10-55-39, pre-determined Advertising services Display advertisements The Group provides display-based online advertising services to its customers by integrating different formats of advertisements, including but not limited to banners, text-links, videos, logos, buttons and rich media, as well as in-program advertisements. The Group determines each format of advertisements is a distinct performance obligation. Consideration is allocated to each performance obligation based on its standalone selling price. The Group recognizes revenue on a pro-rata performance Performance-based advertisements The Group’s auction-based pay-for-performance point-in-time in-feed Sales incentives to customers The Group provides various sales incentives to its customers, including cash incentives in the form of commissions to certain third-party advertising agencies and noncash incentives such as discounts and advertising services provided free of charge in certain bundled arrangements, which are negotiated on a contract by contract basis with customers. The Group accounts for these incentives granted to customers as variable consideration in accordance with ASC 606. The amount of variable consideration is measured based on the most likely Live broadcasting and other valued added service (“VAS”) The Group operates and maintains live broadcasting channel whereby users can enjoy live performances provided by the hosts and interact with the hosts. Most of the hosts host the performance 606-10-55-39. point-in-time generally Proceeds received from the sales of virtual items before they consumed are recorded as “Deferred revenue”. Under the arrangements with the hosts, the Group shares with them a portion of the revenues derived from the sales of virtual items. The portion paid to hosts is recognized as “Cost of revenues” on the consolidated statements of operations and comprehensive loss. The other VAS mainly includes premium membership subscription and sales of virtual items for video, audio and comic content. The Group offers premium membership subscription services which provide subscribing members access to streaming of premium content in exchange for a non-refundable E-commerce E-commerce through e-commerce E-commerce 606-10-55-39, 606-10-32-25. Net revenues presented o Other Estimates and Judgments The Group estimates revenue of mobile game, live broadcasting and other VAS from the third-party payment processors in the current period when reasonable estimates of these amounts can be made. The processors provide reliable interim preliminary reporting within a reasonable time frame following the end of each month and the Group maintains records of sales data, both of which allow the Group to make reasonable estimates of revenue and therefore to recognize revenue during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Group believes are reasonable, but actual results may differ from the Group’s estimates. When the Group receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Group records any differences between estimated revenue on revenue Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to consideration. Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from game players in mobile games, from customers in advertising services, live broadcasting services e 943.4 s Practical expedients The Group has used the following practical expedients as allowed under ASC 606: The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed, as substantially all of the contracts have an original expected duration of one year or less. The Group expenses the costs to obtain a contract as incurred when the amortization period is one year or less. The following revenues For the Year Ended December 31, 2017 2018 2019 RMB in thousands Mobile game 2,058,226 2,936,331 3,597,809 Advertising 159,160 463,490 817,016 Live broadcasting and other 176,443 585,643 1,641,043 E-commerce 74,620 143,467 722,054 Total net revenues 2,468,449 4,128,931 6,777,922 u) Cost of revenues Costs of revenues consist primarily of revenue sharing costs to mobile games developers and distribution channels and payment channels, revenue sharing with the hosts, staff costs, content costs, servers and bandwidth service fees, depreciation expenses and other direct costs of providing these services as well as cost of merchandise sold. These costs are charged to the consolidated statements of operations and comprehensive loss as incurred. v) 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. w) Net loss per share Loss per share is computed in accordance with ASC 260, Earnings per Share two-class two-class Pre-IPO as-converted two-class Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. Potential ordinary shares include ordinary shares issuable upon the conversion of the Pre-IPO if-converted outstanding if-converted Shares x) Statutory reserves In accordance with China’s Company Laws, the Company’s VIEs in PRC must make appropriations from their after-tax , , non-distributable after-tax Pursuant to the laws applicable to China’s FIEs, the Company’s subsidiaries that are FIEs in China have to make appropriations from their a fter-tax after-tax The following table presents the Group’s appropriations to general reserve funds and statutory surplus funds for the years ended December 31, 2017, 2018 and 2019: For the Year Ended 2017 2018 2019 RMB in thousands Appropriations to general reserve funds and statutory surplus funds 2,480 3,591 5,797 y Noncontrolling interests For the Company’s majority-owned subsidiaries and consolidated VIEs, noncontrolling interests are recognized to reflect the portion of the equity which is not attributable, directly or indirectly, to the Company as the controlling shareholder. Noncontrolling interests acquired through a business combination are recognized at fair value at the acquisition The noncontrolling interest s z Comprehensive (loss)/ Comprehensive (loss)/ aa) Segment reporting Based on the criteria established by ASC , Segment Reporting , the Group’s chief operating decision maker has been identified as the Chairman of the Board of Directors and CEO, who reviews consolidated results of the Group when making decisions about allocating resources and assessing performance. The Group has internal reporting of revenue, cost and expenses by nature as a whole. Hence, the Group has only operating segment. The Company is domiciled in the Cayman Islands while the Group mainly operates its businesses in the PRC and earns majority of the revenues from external customers attributed to the PRC. bb) Business c The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations on In a business combination achieved in stages, the Group re-measures s re-measurement on For the Company’s majority-owned subsidiaries and consolidated VIEs, noncontrolling interest s are not If a business combination is under common control, the acquired assets and liabilities are recognized at their historical book value. The consolidated financial statements include the results of the acquired entities from the earliest date presented or, if more recent, from the date when the entities first came under common control, regardless of the date of the combination. Consolidated financial statements for prior years would also be retrospectively adjusted for periods during which the entities were under common control . cc) Recently issued accounting pronouncements Financial Instruments-Credit Losses. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, 2016-13 expected 2016-13 Simplifying the Test for Goodwill Impairment 2017-04 “Simplifying the Test for Goodwill Impairment.” Fair Value Measurement. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Improvements to Accounting for Costs of Films and License Agreements for Program Materials. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, 2019-02 920-350 2019-02 |
Concentrations and Risks
Concentrations and Risks | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations and Risks | 3. Concentrations and Risks a) Telecommunications service provider The Group relied on telecommunications service providers and their affiliates for servers and bandwidth services to support its operations for the years ended December 31, 2017, 2018 and 2019 as follows: For the Year Ended 2017 2018 2019 Total number of telecommunications service providers 52 88 107 Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure 2 3 2 Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers 34 % 48 % 45 % b) Foreign currency exchange rate risk The functional currency and the reporting currency of the Company are U.S. dollar s s s s c) Credit risk The Group’s financial instruments potentially subject to significant concentrations of credit risk primarily consist of cash and cash equivalents, time deposits , money market funds and financial products with variable interest rates referenced to performance of underlying assets issued by commercial banks and other financial institutions time deposits p rimarily One RMB in thousands December 31, December 31, Distribution channel A 63,762 118,860 d) Major customers and supplying channels No single customer represented 10% or more of the Group’s net revenues for the years ended December 31, 2017, 2018 and 2019. The Group relied on a distribution channel to publish and generate the iOS version of its mobile games. Mobile game revenues generated through this distribution channel accounted for approximately 38%, 29% and 17% of the Group’s total net revenues for the years ended December 31, 2017, 2018 and 2019, respectively. e) Mobile games Mobile game revenues accounted for 83%, 71% and 53% of the Group’s net revenues for the years ended December 31, 2017, 2018 and 2019, respectively. The following table summarizes revenues generated by mobile games individually contributing more than 10% of the Group’s total mobile game revenues for the years ended December 31, 2017, 2018 and 2019, respectively. For the Year Ended December 31, 2017 2018 2019 Mobile game 1 72 % 74 % 58 % Mobile game 2 13 % 11 % 10 % |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Doubtful Accounts | |
Allowance for Doubtful Accounts | 4. Allowance for Doubtful Accounts The Group closely monitors the collection of its receivables and records allowance for specifically identified non-recoverable Receivable balances are written off when they are determined to be uncollectible. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2017, 2018 and 2019: Balance at Charged to (write- Write-off Balance at RMB in thousands 2017 1,800 2,716 — 4,516 2018 4,516 10,904 (1,000 ) 14,420 2019 14,420 9,396 (6,120 ) 17,696 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 5. Prepayments and Other Current Assets The following is a summary of prepayments and other current assets: December 31, December 31, RMB in thousands Prepayments for revenue sharing cost* 462,883 542,971 Prepayments for content cost 130,619 226,500 Prepayments for sales tax 80,487 157,244 Interest income receivable 26,812 93,688 Inventories, net 55,032 69,914 Loans to investees or ongoing investments 84,075 64,463 Prepayments of marketing and other operational expenses 33,198 53,246 Prepayments /receivable s 44,951 43,838 Deposits 20,447 26,301 Prepayments to inventory suppliers 12,901 9,058 Others 39,446 28,678 Total 990,851 1,315,901 * App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheet as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going end-users. |
Short-term Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Investments [Abstract] | |
Short-term Investments | 6. Short-term Investments The following is a summary of short-term investments: December 31, 2018 December 31, 2019 RMB in thousands Financial products 858,021 1,070,113 Investment s — 80,918 Money market funds 87,317 109,779 Total 945,338 1,260,810 For the years ended December 31, 2017, 2018 and 2019, the Group recorded investment income of RMB39.0 million and , investment loss of related to short-term investment s |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 7. Property and Equipment, Net The following is a summary of property and equipment, net: December 31, 2018 December 31, 2019 RMB in thousands Leasehold improvements 51,186 76,772 Servers and computers 481,695 765,110 Others 19,127 23,211 Total 552,008 865,093 Less: accumulated depreciation (157,110 ) (349,006 ) Net book value 394,898 516,087 Depreciation expenses were RMB 38.4 99.7 191.8 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | 8. Intangible Assets, Net The following is a summary of intangible assets, net: As of December 31, 2018 Gross Accumulated Net RMB in thousands Licensed copyrights of content 1,997,175 (921,565 ) 1,075,610 License rights of mobile games 18,098 (15,163 ) 2,935 Domain names and others 412,202 (71,312 ) 340,890 Total 2,427,475 (1,008,040 ) 1,419,435 As of December 31, 2019 Gross Accumulated Net RMB in thousands Licensed copyrights of content 3,072,959 (1,736,608 ) 1,336,351 License rights of mobile games 71,703 (35,863 ) 35,840 Domain names and others 434,089 (148,947 ) 285,142 Total 3,578,751 (1,921,418 ) 1,657,333 Amortization expenses were RMB260.6 million, RMB542.7 million and RMB905.6 million for the years ended December 31, 2017, 2018 and 2019, respectively. No impairment charge was recognized for any of the periods presented. As of December 31, 2019, the licensed copyrights of content have weighted-average useful lives of 3.2 years. The intangible assets amortization expense for future years is expected to be as follows: Intangible assets amortization expense RMB in thousands 2020 705,062 2021 390,818 2022 228,651 2023 123,159 2024 74,550 Thereafter 135,093 Total expected amortization expense 1,657,333 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination, Goodwill [Abstract] | |
Goodwill | 9. Goodwill December 31, December 31, RMB in thousands Beginning balance 50,967 941,488 Additions (Note 26) 890,521 70,538 Ending balance 941,488 1,012,026 No impairment charge was recognized for the years ended December 31, 2017, 2018 and 2019. |
Long-term Investments, Net
Long-term Investments, Net | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Investments, Net | |
Long-term Investments, Net | 10. Long-term Investments, Net The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the Equity investments using the measurement alternative The Group did not disclose the fair value of alternative measure method investments if it is not practicable to estimate the fair value of its alternative measure method investments for which a quoted market price is not available due to both excessive cost as well as lack of available information on fair value of such investments. Specifically, many of the investees are start-up RMB million and of investment income was recognized in “Investment income, net ”, as a result of re-measurement of equity investments using the measurement alternative, s , and , respectively. As of December , 2018 and , the y value of equity investments accounted for using the measurement alternative R MB 793.1 million and million , respectively The Group recorded impairment charges for long-term investment s 46.4 o s 2016-01, 16.0 Equity investments accounted for using the equity method As of December 31, 2019, the carrying value of equity investments accounted for using the equity method was RMB280.0 million. RMB24.2 million of the Group’s proportionate share of equity investee’s net loss, after net-off of dividend received, was recognized in “Investment income, net” for the year ended December 31, 2019. No impairment charges were recognized for the year ended December 31, 2019. The Group did not have equity method investment as of December 31, 2018. Investments accounted for at fair value Investments accounted , a loss of RMB million and a gain of RMB million resulted from the change in fair value was recognized in “Investment income, net” for the years ended December 31, 2017, 2018 and 2019, respectively . |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2019 | |
Taxation | |
Taxation | 11. Taxation Composition of income tax The following table presents the composition of income tax expenses for the years ended December 31, 2017, 2018 and 2019: For the Year Ended December 31, 2017 2018 2019 RMB in thousands Current income tax expense 8,881 14,909 29,452 Withholding income tax expense — 11,079 16,894 Deferred income tax expense — — (10,479 ) Total 8,881 25,988 35,867 a) Income taxes Cayman Islands Under the current laws of the Cayman Islands, the Company and its intermediate holding companies in the Cayman Islands are not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company or its subsidiaries in the Cayman Islands to their shareholders, no withholding tax will be imposed. British Virgin Islands (“BVI”) Subsidiaries in the BVI are exempted from income tax on their foreign-derived income in the BVI. There are no withholding taxes in the BVI. Hong Kong Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. The payments of dividends by these companies to their shareholders are not subject to any withholding tax in Hong Kong. Commencing from the year of assessment of 2018 and 2019, the first HK$2 million of profits earned by the Company’s subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e. 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate. China On March 16, 2007, the National People’s Congress of the PRC enacted the Enterprise Income Tax (“EIT”) Law, under which FIEs and domestic companies would be subject to EIT at a uniform rate of 25%. Preferential tax treatments will continue to be granted to FIEs or domestic companies which conduct businesses in certain encouraged sectors and to entities otherwise classified as “Software Enterprises”, “Key Software Enterprises” and/or “High and New Technology Enterprises” (“HNTEs”). The EIT Law became effective on January 1, 2008. The aforementioned preferential tax rates are subject to annual review by the relevant tax authorities in . Shanghai Hode was qualified as a HNTE in 2017 and Shanghai Bilibili Technology Co., Ltd. was qualified as a HNTE in 2018, respectively. Therefore, they are entitled to a preferential income tax rate at % for three years starting from 201 7 2018 The following table presents a reconciliation of the differences between the statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2017, 2018 and 2019: For the Year Ended 2017 2018 2019 % % % Statutory income tax rate 25.00 25.00 25.00 Permanent differences (13.22 ) (3.76 ) (0.83 ) Tax rate difference from statutory rate in other jurisdictions* (20.07 ) (0.92 ) (0.39 ) Tax effect of preferential tax treatments 3.76 (3.15 ) (8.48 ) Withholding tax — (2.05 ) (1.33 ) Change in valuation allowance (0.55 ) (19.94 ) (16.80 ) Effective income tax rate (5.08 ) (4.82 ) (2.83 ) * It is primarily due to the tax effect of the Company as a tax-exempt As of December 31, 2019, certain entities of the Group had net operating tax loss carry forwards as follows: RMB in Loss expiring in 2020 78,943 Loss expiring in 2021 53,320 Loss expiring in 2022 137,483 Loss expiring in 2023 457,884 Loss expiring in 2024 1,316,206 Total 2,043,836 b) Sales tax The Group’s subsidiaries and VIEs incorporated in China are subject to 6% value added tax (“VAT”) for services rendered and 16% or 13% VAT for goods sold. c) Deferred tax assets and liabilities The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities as of December 31, 2018 and 2019: December 31, December 31, RMB in thousands Deferred tax assets: Deferred revenue, primarily for games 90,311 95,806 Accrued expenses and other payables 25,984 82,351 Advertising expenses in excess of deduction limit 312 7,507 Net operating tax loss carry forwards 176,439 360,975 Others 909 1,199 Total deferred tax assets 293,955 547,838 Less: valuation allowance (293,955 ) (537,359 ) Net deferred tax assets — 10,479 Realization of the net deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss or credit carry forwards. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity - - - The following table sets forth the movement of the aggregate valuation allowances for deferred tax assets for the periods presented: Balance at Re-measurement due to Addition Expiration of loss carry Balance at RMB in thousands 2017 (183,091 ) 23,074 (962 ) 3,715 (157,264 ) 2018 (157,264 ) 22,502 (159,690 ) 497 (293,955 ) 2019 (293,955 ) — (248,896 ) 5,492 (537,359 ) d) Withholding income tax on dividends The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident To the extent that subsidiaries and VIEs of the Group have undistributed earnings, the Group will accrue appropriate expected withholding tax associated with repatriation of such undistributed earnings. As of December 31, 2018 and 2019, the Group did not record any withholding tax on the retained earnings of its subsidiaries and VIEs in the PRC as they were still in accumulated deficit position. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Payable | |
Taxes Payable | 12. Taxes Payable The following is a summary of taxes payable as of December 31, 2018 and 2019: December 31, 2018 December 31, 2019 RMB in thousands Withholding individual income taxes for employees 7,844 12,941 VAT payable 13,920 16,519 EIT payable 6,913 20,599 Withholding income tax payable 5,510 12,302 Others 4,318 5,495 Total 38,505 67,856 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other Payables | |
Accrued Liabilities and Other Payables | 13. Accrued Liabilities and Other Payables The following is a summary of accrued liabilities and other payables as of December 31, 2018 and 2019: December 31, December 31, RMB in thousands Accrued marketing expenses 71,217 229,457 Leasing liabilities - current portion — 95,901 Consideration payable for acquisitions and investments 502,279 79,059 Advances to/payables from third parties 21,966 76,893 Payables to producers and licensors 9,357 25,898 Professional fees 13,492 22,562 Other staff related cost 18,685 13,791 Interest payable — 11,990 Others 33,446 20,212 Total 670,442 575,763 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Revenue | |
Deferred Revenue | 14. Deferred Revenue Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from game players in mobile games, from customers in advertising services, live broadcasting services and other VAS, and e-commerce s |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 15. Long-term D In April 2019, the Group issued US$500.0 million of 2026 Notes with an interest rate of 1.375% per annum US (RMB3,356.1 million) s US (RMB81.1 million) 2026 Notes may be converted, initial conversion rate of 40.4040 Holders of the 2026 Notes may require the Company to repurchase all or part of their 2026 Notes in cash on April 1, 2024 or in the event of certain fundamental changes at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. The issuance costs of the 2026 Notes were amortized to interest expense over the contractual life to the maturity date (i.e., April 1, 2026). For the year ended December 31, 2019, the 2026 Notes related interest expense was US$6.4million (RMB44.9 million). The Group assessed the 2026 Notes under ASC 815 and concluded that: • Since the conversion option is considered indexed to the Company’s own stock and classified in stockholders’ equity, bifurcation of conversion option from the 2026 Notes is not required as the scope exception prescribed in ASC 815-10-15-74 • The repurchase option is considered clearly and closely related to its debt host and does not meet the requirement for bifurcation; • There was no beneficial conversion feature attributed to the 2026 Notes as the conversion price for the 2026 Notes was greater than the fair value of the Company’s ordinary share price at date of issuance; Therefore, the Group accounted for the 2026 Notes as a single instrument as “Long-term debt” on the consolidated balance sheets. The issuance costs were recorded as an adjustment to the long-term debt and are amortized as interest expense using the effective interest method. As of December 31, 2019, the principal amount of the debt was RMB3,488.1 million and unamortized debt issuance costs were RMB73.5 million. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2019 | |
Ordinary shares | |
Ordinary shares | 16. Ordinary Shares Since the inception, the Company issued Pre-IPO Pre-IPO Pre-IPO Pre-IPO , or collectively referred to as “Pre-IPO Ordinary Shares” Pre-IPO Pre-IPO Pre-IPO Pre-IPO According to the revised memorandum of association of the Company dated April 1, 2017, all the Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO as-converted Immediately prior to the completion of the IPO, the Company adopted a dual-class share structure, consisting of Class Y Ordinary Shares and Class Z Ordinary Shares, par value US$0.0001 per share. As set forth in the Sixth Amended and Restated Memorandum and Articles of Association of the Company effective immediately prior to the completion of the IPO, holders of Class Y Ordinary Shares and Class Z Ordinary Shares have the same rights except that the holders of Class Z Ordinary Shares are entitled to one vote per share in respect of matters requiring the votes of shareholders, while holders of Class Y Ordinary Shares are entitled to ten votes per share. Each Class Y Ordinary Share is convertible into one Class Z Ordinary Share at any time by the holder thereof. Class Z Ordinary Shares are not convertible into Class Y Ordinary Shares under any circumstances. The Group concluded that the adoption of dual-class share structure did not have a material impact on its consolidated financial statements. Other permanent equities The Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO 480-10-S99-3A(f) Pre-IPO Pre-IPO In April 2018, the Company completed its IPO on the NASDAQ Global Select Market. In the offering, 42,000,000 ADSs, representing 42,000,000 Class Z Ordinary Shares, were issued and sold to the public at a price of US$11.50 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately $443.3 million (RMB 2,781.8 Upon the completion of the IPO, the Company completed the redesignation on a one-for-one Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO In October 2018, 25,063,451 317.2 2,170.8 In April 2019, the Company completed the P rimary O , . |
Pre-IPO Preferred Shares
Pre-IPO Preferred Shares | 12 Months Ended |
Dec. 31, 2019 | |
Pre-IPO Preferred Shares | |
Pre-IPO Preferred Shares | 1 7 Pre-IPO The Pre-IPO “Pre-IPO Pre-IPO as they were contingently redeemable at the options of the holders, and recorded accretion on the Pre-IPO Upon the completion of the Company’s IPO, all of the issued and outstanding Pre-IPO 16 In 2017, the Company redesignated certain Pre-IPO Series C Preferred Shares into Pre-IPO Series D1 Preferred Shares, which resulted in a deemed dividend of RMB129.2 million and were recorded against additional paid-in capital. The Group’s Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Preferred Shares Pre-IPO Preferred Shares Total Mezzanine Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number of shares Amount Number of shares Amount Number Amount RMB in thousands, except for share data Balance as of December 31, 2016 7,078,502 15,640 14,643,281 79,349 22,794,876 302,257 39,297,373 1,085,154 42,585,304 1,344,896 954,605 34,317 — — — — 127,353,941 2,861,613 Issuance of Pre-IPO — — — — — — — — — — — — 1,154,643 49,086 13,759,564 689,069 14,914,207 738,155 Redesignation of Pre-IPO Pre-IPO — — — — — — (11,301,189 ) (351,928 ) — — — — 11,301,189 481,172 — — — 129,244 Share based compensation in connection with redesignation of Pre-IPO Pre-IPO — — — — — — — — — — — — — 10,474 — — — 10,474 Redesignation of Pre-IPO Pre-IPO — — — — — — — — — — — — 645,357 17,003 — — 645,357 17,003 Accretion to Pre-IPO — 985 — 6,332 — 23,302 — 64,129 — 97,455 — 2,446 — 28,650 — 35,255 — 258,554 Balance as of December 31, 2017 7,078,502 16,625 14,643,281 85,681 22,794,876 325,559 27,996,184 797,355 42,585,304 1,442,351 954,605 36,763 13,101,189 586,385 13,759,564 724,324 142,913,505 4,015,043 The Group’s Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Preferred Shares Pre-IPO Preferred Shares Total Mezzanine Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number of shares Amount Number of shares Amount Number Amount RMB in thousands, except for share data Balance as of December 31, 2017 7,078,502 16,625 14,643,281 85,681 22,794,876 325,559 27,996,184 797,355 42,585,304 1,442,351 954,605 36,763 13,101,189 586,385 13,759,564 724,324 142,913,505 4,015,043 Accretion to Pre-IPO — 242 — 1,448 — 5,328 — 13,633 — 23,024 — 578 — 9,124 — 11,228 — 64,605 Redesignation of Pre-IPO — — — — — — — — (1,104,535 ) (38,007 ) — — — — — — (1,104,535 ) (38,007 ) Redesignation of Pre-IPO (7,078,502 ) (16,867 ) (14,643,281 ) (87,129 ) (22,794,876 ) (330,887 ) (27,996,184 ) (810,988 ) (41,480,769 ) (1,427,368 ) (954,605 ) (37,341 ) (13,101,189 ) (595,509 ) (13,759,564 ) (735,552 ) (141,808,970 ) (4,041,641 ) Balance as of December 31, 2018 — — — — — — — — — — — — — — — — — — |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Employee Benefits | 18. Employee Benefits The Company’s subsidiaries and VIEs incorporated in China participate in a government-mandated multi-employer defined contribution plan under which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s Chinese subsidiaries and VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; hence, the Group has no further commitments beyond its monthly contribution. The following table presents the Group’s employee welfare benefits expenses for the years ended December 31, 2017, 2018 and 2019: For the Year Ended December 31, 2017 2018 2019 RMB in thousands Contributions to medical and pension schemes 91,302 158,113 215,553 Other employee benefits 14,595 23,958 24,180 Total 105,897 182,071 239,733 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 1 9 Share-based Compensation a) Description of share option plans In July 2014, the Group adopted its Global Share Incentive Plan (the “2014 Plan”), which permits the grant of options, restricted shares and restricted share units of the Company to relevant directors, officers, other employees and consultants of the Group. The maximum aggregate number of Class Z Ordinary Shares, which may be issued pursuant to all awards under the 2014 Plan, is 19,880,315 shares. In February 2018, the Group adopted its 2018 Share Incentive Plan (the “2018 Plan”) to provide additional incentives to employees, directors and consultants and promote the success of our business. The maximum aggregate number of Class Z Ordinary Shares, which may be issued pursuant to all awards under the 2018 Plan, is 6,962,069 shares. Option awards are granted with an exercise price determined by the Board of Directors. Those option awards generally vest over a period of two four years six years As of December 31, 2019, total unrecognized compensation expenses related to unvested awards granted under the 2014 Plan and the 2018 Plan, adjusted for estimated forfeitures, was RMB 472.0 million, which is expected to be recognized over a weighted-average period of 3.0 years and may be adjusted for future changes in estimated forfeitures. b) Valuation assumptions The Group uses binomial option pricing model to determine the fair value of share options. The estimated fair value of each share option granted is estimated on the date of grant using the binomial option-pricing model with the following assumptions: For the Year Ended December 31, 2017 2018 2019 Expected volatility 42.5%-45.8 % 47.8%-48.4 % 49.6%-52.1 % Weighted average volatility 43.3 % 48.3 % 50.8 % Expected dividends — — — Risk-free rate 1.5% - 2.3 % 2.6%-2.8 % 1.4%-2.4 % Contractual term (in years) 6 6 6 The expected volatility at each grant date was estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the term of the share options. The weighted average volatility is the expected volatility at the grant date weighted by the number of the share options. The Company Company dollars (c) Share options activities The following table presents a summary of the Group’s share options activities for the years ended December 31, 2017, 2018 and 2019: Employees Senior Consultants Total Weighted Weighted Aggregate (In thousands) (In thousands) (In thousands) (In thousands) US$ (In years) (RMB in Outstanding at January 1, 2017 4,992 6,580 — 11,572 0.0001 5.02 224,620 Granted 3,419 5,115 700 9,234 0.0001 Exercised — — — — 0.0001 Forfeited (287 ) (1,100 ) — (1,387 ) 0.0001 Outstanding at December 31, 8,124 10,595 700 19,419 0.0001 4.80 880,197 Outstanding at January 1, 2018 8,124 10,595 700 19,419 0.0001 4.80 880,197 Granted 2,587 620 — 3,207 0.0001 Exercised (2,387 ) (5,543 ) (212 ) (8,142 ) 0.0001 Forfeited (683 ) (1,437 ) (50 ) (2,170 ) 0.0001 Outstanding at December 31, 7,641 4,235 438 12,314 0.0001 4.46 1,233,028 Outstanding at January 1, 2019 7,641 4,235 438 12,314 0.0001 4.46 1,233,028 Granted 2,464 730 — 3,194 0.0001 Exercised (1,352 ) (710 ) (193 ) (2,255 ) 0.0001 Forfeited (479 ) (600 ) — (1,079 ) 0.0001 Outstanding at December 31, 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Exercisable as of December 31, 2019 955 — 145 1,100 0.0001 2.59 142,892 The weighted average grant date fair value of share options granted for the years ended December 31, 2017, 2018 and 2019 was RMB35.1 (US$5.3), RMB76.2 (US$11.7) and RMB104.4 (US$15.0) per share, respectively. It is the Group’s policy to issue new shares upon exercise of share options. The aggregate number of Class Z Ordinary Shares available for future grant under the 2014 Plan and the 2018 Plan was 4,271,875 as of December 31, 2019. In 2017, the Company also recognized a total of RMB36.1 million share-based compensation expenses on certain transactions related to Pre-IPO Class A Ordinary Shares , Pre-IPO Series C1 D |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2019 | |
Net Loss Per Share | |
Net Loss Per Share | 20. Net Loss per Share For the years ended December 31, 2017, 2018 and 2019, the Company had potential ordinary shares, including share options granted, Pre-IPO Pre-IPO For the year ended December 31, 2017, the numbers of share options, Pre-IPO Upon the completion of the Company’s IPO in April 2018, all of the outstanding Pre-IPO The number of share options, which was anti-dilutive and excluded from the computation of diluted net loss per share for the year ended December 31, 2018, was 15,594,490 shares. For the year ended December 31, 2019, the numbers of share options and the number of ordinary shares issuable upon the conversion of the 2026 Notes, which were anti-dilutive and excluded from the computation of diluted net loss per share, were 9,328,721 shares and 20,202,000 shares, respectively. The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2017, 2018 and 2019: For the Year Ended December 31, 2017 2018 2019 RMB in thousands, except share and per Numerator: Net loss (183,750 ) (565,021 ) (1,303,570 ) Accretion to Pre-IPO (258,554 ) (64,605 ) — Deemed dividend in connection with repurchase of Pre-IPO (129,244 ) — — Net loss attributable to noncontrolling interests — 13,301 14,597 Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation (571,548 ) (616,325 ) (1,288,973 ) Denominator: Weighted average number of ordinary shares outstanding, basic 69,938,570 233,047,703 323,161,680 Weighted average number of ordinary shares outstanding, diluted 69,938,570 233,047,703 323,161,680 Net loss per share, basic (8.17 ) (2.64 ) (3.99 ) Net loss per share, diluted (8.17 ) (2.64 ) (3.99 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies (a) Commitments Purchase obligations In December 2019, the Group entered into a letter of intent to purchase the three-year license for live broadcasting the League of Legends World Championship in China starting from 2020 at an aggregate purchase price of RMB800.0 million (US$114.9 million) . Long-term debt obligations The Group’s long-term debt obligations are to repay the principal amount and cash interests in connection with the 2026 Notes. The expected repayment schedule of the 2026 Notes has been disclosed in Note 15. (b) Litigation From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of any unresolved matters, individually and in the aggregate, is reasonably possible to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any material liabilities in this regard as of December 31, 2018 and 2019. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions and Balances | |
Related Party Transactions and Balances | 22. Related Party Transactions and Balances The Group entered into the following significant related party transactions for the periods presented: For the Year Ended December 31, 2017 2018 2019 RMB in thousands Purchases of goods and services 3,741 162,992 87,597 Transfer of long-term investments * 12,750 3,250 539,646 The Group had the following significant related party balances as of December 31, 2018 and 2019 respectively: December 31, December 31, RMB in thousands Amount due from related parties Due from an investment fund — Due from other related parties — 24,755 Total — 195,290 Amount due to related parties Due to Chaodian 50,331 — Total 50,331 — * In June 2019, to focus the Company’s efforts and resources on its core businesses, the Company transferred several equity investments of the Group to an investment fund. The Group contributed a total of RMB220.0 million cash into this fund as a limited partner, which is accounted for as an equity method investment. The cost of the equity investments transferred was RMB465.8 million. The consideration was RMB539.6 million, which was based on the estimated fair value of the investments. The difference between the consideration and cost of the investments was recognized as investment income. As of December 31, 2019, the consideration receivable was RMB143.7 million. The transactions in 2017 and 2018 referred to the investments transferred to an entity controlled by the Group’s major shareholders. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment Information | 23. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Mr. Rui Chen, the Chairman of the Board of Directors and CEO. The Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations which include, but not limited to, customer base, homogeneity of products and technology. The Group’s operating segments are based on such organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. The Group has internal reporting of revenue, cost and expenses by nature as a whole. Hence, the Group has only one operating segment. Substantially the majority of the Group’s revenues are derived from China based on the geographical locations where services are provided to customers. In addition, the Group’s long-lived assets are substantially all located in and derived from China, and the amount of long-lived assets attributable to any individual other country is not material. Therefore, no geographical segments are presented. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement | |
Fair Value Measurement | 24. Fair Value Measurement 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. The Group measures investments in money market funds, financial products and equity investment s ies Money market funds and equity investment s s ies Financial products other Accounts receivable , receivables due from related parties The Group measures equity investments accounted for using the equity method at fair value on a non-recurring basis only if an impairment charge were to be recognized. Equity investments accounted for using the measurement alternative are generally not categorized in the fair value hierarchy. However, if equity investments without readily determinable fair values were re - |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Net Assets | |
Restricted Net Assets | 25. Restricted Net Assets Relevant PRC laws and regulations permit the PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries and VIEs can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the generically reserve fund and the statutory surplus fund respectively. The general reserve fund and the statutory surplus fund require that annual appropriations of 10% of net after-tax % |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions | |
Acquisitions | 26. Acquisitions Transaction with Zenith Group Holdings Co., Limited (“Zenith” In September 201 8 o f Zenith, the owner of a series of famous virtual singers, such as Luo Tianyi. Prior to this transaction, the Group owned 7.4% of equity interest in Zenith, which was accounted for as long-term investments using alternative measure method. The total consideration was RMB296.8 million in cash. Following the completion of this transaction in September 2018, the Group held approximately Zenith Zenith The Group made estimates and judgments in determining the fair value of the assets acquired and liabilities assumed with the assistance from an independent valuation firm. The purchase price allocation as the date of the acquisition is as follows: Amount Amortization RMB in thousands Net assets acquired 30,252 Intangible assets —Tradename 54,974 8 —Non-compete clause 2,230 3 Noncontrolling interests (121,154 ) Goodwill 360,039 Total 326,341 Total purchase price comprised of: Amount RMB in thousands Cash consideration 296,796 Fair value of previously held equity interests 29,545 Total 326,341 A gain of RMB5.8 million in relation to the revaluation of the previously held equity interests in Zenith was recorded in “Investment income, net” o Goodwill arising from this acquisition was attributable to the synergies between virtual idols and the Group’s multiple business streams, including live broadcasting, advertising, games, virtual idol related derivative products and offline performance events. The goodwill recognized In the fourth quarter of 2019, the Group acquired the remaining 28.1% of equity interests in Zenith from noncontrolling shareholders with a total consideration of US$22.4 million (RMB million), which was accounted for as an equity transaction pursuant to ASC 810-10-45-23. The difference between the fair value of the consideration and the carrying value of the noncontrolling interests was accounted for as deemed dividend to the noncontrolling shareholders and was recorded against additional paid-in capital. No gain or loss was recorded by the Group. Transactions with Chaodian In July 2019, the Group entered into a series of agreements to acquire 72.0% of equity interests in Chaodian, which was subsequently diluted to 63.6% with capital injections from certain other noncontrolling interests. The total consideration of this acquisition consisted of RMB288.6 million paid to the existing third party shareholders and a direct capital injection amounting to RMB909.6 million. Chaodian runs various offline events such as flagship concerts and exhibitions, and operates an industry-related talent agency. The Company and Chaodian were under the same control of the Controlling Shareholder since July 2019. Therefore, this transaction was accounted for as a business combination under common control and the Company’s consolidated financial statements included the acquired assets and liabilities of Chaodian, at their historical carrying amounts of approximately RMB986.4 million. The consolidated financial statements as of and for the year ended December 31, 2019 reflected the results of the Company and Chaodian as if they had been combined since July 1, 2019. The excess of the consideration over the historical carrying amount of the acquired assets and liabilities, as well as noncontrolling interests, was accounted for deemed dividend to the other shareholders of Chaodian. The allocation of the consideration of the assets acquired and liabilities assumed based on their carrying Amount RMB in thousands Consideration 1,198,198 Cash and cash equivalents 1,199,117 Accounts receivable, net 95,147 Goodwill 36,120 Other asset acquired 68,214 Total assets acquired 1,398,598 Accrued liabilities and other payables (323,025 ) Other liabilities assumed (89,217 ) Total liability assumed (412,242 ) Noncontrolling interests (276,621 ) Deemed dividend 488,463 Total 1,198,198 Other acquisitions For the years ended December 31, 2018 and 2019, the Group completed several other acquisitions, to complement its existing businesses and achieve synergies. The acquired entities individually and in aggregate were insignificant. The Group’s other acquisitions are summarized in the following table: For the Year Ended December 31, Amortization 2018 2019 Amount RMB in thousands Net assets acquired 62,800 65,582 Intangible assets —Tradename 104,000 — 5 —User base 21,500 — 3 years —Copyrights 23,500 — 9 3 —Technology 9,000 — 6 8 Noncontrolling (107,505 ) (30,000 ) Goodwill 530,482 34,418 Total 643,777 70,000 Total purchase price comprised of: Amount RMB in thousands Cash consideration 391,071 70,000 Fair value of previously held equity interests 252,706 — Total 643,777 70,000 In relation to the revaluation of previously held equity interests, the Group recognized a gain of RMB138.6 million and nil o Pro forma results of operations for all the acquisitions have not been presented because they were not material to the consolidated statements of operations and comprehensive loss for the years ended December 31, 2018 and 2019, either individually or in aggregate. No acquisition incurred for the year ended December 31, 2017. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent Events | 27. Subsequent Events Starting from January 2020, it was reported that a novel strain of coronavirus, later named COVID-19, spread worldwide. The Group is still in the process of assessing the impact. The extent to which COVID-19 impacts the business and financial results of the Group will depend on future developments, which are uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Basis of presentation | a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, 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 the board 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 consolidated VIE is an entity in which the Company’s subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company’s subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. In July 2019, the Group entered into a series of agreements to acquire a controlling interest in Chaodian Inc. (“Chaodian”). At that time, both the Company and Chaodian were controlled by Mr. Rui Chen (the “Controlling Shareholder”). ASC 805-50 |
Use of estimates | c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of the average playing period for paying players, fair value determination and allocation of identifiable assets and liabilities acquired through business combinations, assessment for the impairment of long-lived assets , valuation allowance of deferred tax assets. |
Functional currency and foreign currency translation | d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries incorporated in the Cayman Islands and Hong Kong is United States dollars (“US$”). The functional currency of the Company’s subsidiaries incorporated in Japan is Japanese yen. The functional In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC 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 rate for the year. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive (loss)/income on Foreign currency transactions denominated in currencies other than on |
Convenience Translation | e) Convenience Translation Translations of balances on |
Fair value measurements | f) Fair value measurements Financial instruments Accounting guidance defines fair value as 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 it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes 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. Accounting guidance establishes three levels of inputs that may be used to measure fair value: a. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. b. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. • Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash and cash equivalents, time deposits, accounts receivable, receivables due from related parties, short-term investments, and accounts payable of which the carrying values approximate their fair values. Please see Note 24 for additional information. |
Cash and cash equivalents and time deposits | g) Cash and cash equivalents and time deposits Cash and cash equivalents mainly represent cash on hand, demand on hand . . As of December 31, 2018 and 2019, the Group had approximately RMB377.8 million and RMB1,596.0 million cash and cash equivalents held by its PRC subsidiaries and VIEs, representing 11% and 32% of total cash and cash equivalents of the Group, respectively. Time deposits represent deposits placed with banks with original maturities more than three months but less than one year. As of December 31, 2018 and 2019, there were time deposits denominated in U . . The Group had no other lien arrangements for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2018 and 2019, the Group had no restricted cash balance. |
Inventories, net | h) Inventories, net Inventories, mainly represent products for the Group’s e-commerce o o |
Property and equipment, net | i) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. 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 on the consolidated statements of operations and comprehensive loss. |
Intangible assets, net | j) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Purchased intangible assets are initially recognized and measured at fair value. Major identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Licensed copyrights of content shorter of the licensed period or projected useful life of the content License rights of mobile games shorter of the licensed period or projected useful life of mobile games Domain names and others 1 - If expectations of the usefulness of the content are revised downward, the unamortized cost is written down to the estimated net realizable value. A write-down from unamortized cost to a lower estimated net realizable value establishes a new cost basis. |
Goodwill | k) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event or circumstances change occurs that indicate the asset might be impaired. Under ASC 350-20-35, two-step two-step |
Impairment of long-lived assets other than goodwill and intangible assets | l) Impairment of long-lived assets other than goodwill and intangible assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected |
Research and development expenses | m) Research and development expenses Research and development expenses mainly consist of payroll-related expenses incurred for the innovation of video function, development and enhancement to the Group’s websites and platforms of applications and development of online games. For internal use software, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platforms. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Group’s research and development expenses qualifying for capitalization has been immaterial, as a result, all development costs incurred for development of internal used software have been expensed as incurred. For external use software, costs incurred for development of external use software have not been capitalized since the inception of the Group, because the period after the date technical feasibility is reached and the time when the software is marketed is short historically, and the amount of costs qualifying for capitalization has been immaterial. |
Sales and marketing expenses | n Sales and marketing expenses Sales and marketing expenses consist primarily of marketing and promotional expenses, salaries and other compensation-related expenses to the Group’s sales and marketing personnel. Marketing and promotional marketing and promot ion years marketing and promotional |
Leases | o) Leases On January 1, 2019, the Group adopted ASU No. 2016-02, Leases (Topic 842) right-of-use The Group elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease Right-of-use As a result of the adoption, the Group recognized approximately RMB235.7 million of right-of-use respectively The Group leases office space and staff quarters under non-cancelable 2024 the Group’s 3.2 4.75%. December 31, 2019 RMB in thousands 2020 93,741 2021 100,109 2022 89,399 2023 28,643 2024 357 Total future lease payments 312,249 Impact of discounting remaining lease payments (23,298) Total lease liabilities 288,951 Rent expense under operating leases was RMB55.0 million and for the years ended December 31, 2017 and 2018, respectively. Operating lease cost for the year ended December 31, 2019 was RMB 79.4 related For the Year Ended December 31, 2019 RMB in thousands Cash payments for operating leases 67,535 Right-of-use assets obtained in exchange for operating lease liabilities 96,692 Future lease payments under leases Operating Leases* RMB in thousands 2019 65,400 2020 72,230 2021 73,054 2022 69,681 Beyond 2022 19,544 * Amounts are based on ASC 840, Leases Leases |
Share-based compensation | p Share-based compensation Share based compensation expenses arise from share-based awards, including share options for the purchase of the Company’s ordinary shares. The Group accounts for share-based awards granted to employees in accordance with ASC 718 Compensation - Stock Compensation 2018-07, Compensation—Stock Compensation (Topic 718): Improvement to Nonemployee Share-based Payment Accounting 2018-07, non-employees For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rates and expected dividends. For share options granted with service conditions only, share-based compensation expenses are recorded net of estimated forfeitures using straight-line method during the requisite service period, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. For share options granted with service condition and the occurrence of an IPO as performance condition, share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the requisite service period. Cumulative share-based compensation expenses for the options that have satisfied the service condition, amounting to RMB28.9 million, were recorded upon the completion of the IPO in 2018 |
Employee benefits | q Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. |
Investments | r Investments Short-term investments Short-term investments primarily include money market funds, financial products with variable interest rates referenced to performance of underlying assets issued by commercial banks or other financial institutions and publicly traded companies with the intention to be sold within twelve In accordance with ASC 825, Financial Instruments on For the investments in publicly traded companies, the Group carries the investments at fair value at the end of each reporting period. Changes in the fair value of these investments are reflected on Long-term investments, net The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the Equity investments accounted for using the measurement alternative For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group records them at cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities Management regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized equal to the excess of the investment cost over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Equity investments accounted for using the equity method The Group applies the equity method of accounting to account for equity investments and limited partnership in a private equity fund, according to ASC 323 Investment—Equity Method and Joint Ventures and cash distributions from investees, Investments accounted for at fair value In accordance with ASC 825, Financial Instruments |
Taxation | s) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the assets and liabilities 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 purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of operations and comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not portion Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more-likely-than-not two-step more-likely-than-not its following |
Revenue recognition | t Revenue recognition On January 1, 2018, the Group adopted ASC 606, Revenue from Contracts with Customers Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. The adoption of ASC 606 did not significantly change (1) the timing and pattern of revenue recognition for all of the Group’s revenue streams, and (2) the presentation of revenue as gross versus net. Therefore, the adoption of ASC 606 did not have a significant impact on the Group’s financial position, results of operations, equity or cash flows as of the adoption date and for the year s 2018 and The Group’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Mobile game services Exclusively distributed mobile games For the years ended December 31, 2017, 2018 and 2019, the Group primarily generates revenues from the sale of in-game In accordance with ASC 606, the Group evaluates the contracts with its customers and determines that the Group has a single combined performance obligation which is to make the game and the ongoing game related services available to the paying players. The transaction price, which is the amount paid for in-game in-game point-in-time in-game The Group has estimated the average playing period of the paying players for each game, usually between three to seven months. The Group considers the average period that players typically play the games and other game player behavior patterns, as well as various other factors to arrive at the best estimates for the estimated playing period of the paying players. To compute the estimated average playing period for paying players, the Group considers the initial purchase date as the starting point of a player’s lifespan. The Group tracks populations of paying players who made their initial purchases during the interval period (the “Cohort”) and tracks each Cohort to understand the subsequent churn rate of the paying players of each Cohort, i.e. the number of players from each Cohort who left subsequent to their initial purchases. To determine the ending point of a paying player’s lifespan beyond the date for which observable data are available, the Group extrapolates the actual observed churn rate to arrive at an estimated weighted average playing lifespan for paying players of the selected games. If a new game is launched and only a limited period of paying player data is available, then the Group considers other qualitative factors, such as the playing patterns for paying players for other games with similar characteristics with the new game, including paying player type and purchasing frequency. While the Group believes its estimates to be reasonable based on available game player information, the Group may revise such estimates based on new information indicating a change in the game player behavior patterns and any adjustments are applied prospectively. In accordance with ASC 606-10-55-39, exclusively in-game in-game Proceeds earned from selling in-game channels channels statements and Jointly operated mobile game distribution services The Group is also offering distribution services for mobile games developed by third-party game developers. In accordance with ASC 606, the Group evaluates the contracts with the third-party game developers and identifies the performance obligations as distributing games and providing payment solution and market promotion service to the game developers. Accordingly, the Group earns service revenue by distributing them to the game players. In accordance with ASC 606-10-55-39, pre-determined Advertising services Display advertisements The Group provides display-based online advertising services to its customers by integrating different formats of advertisements, including but not limited to banners, text-links, videos, logos, buttons and rich media, as well as in-program advertisements. The Group determines each format of advertisements is a distinct performance obligation. Consideration is allocated to each performance obligation based on its standalone selling price. The Group recognizes revenue on a pro-rata performance Performance-based advertisements The Group’s auction-based pay-for-performance point-in-time in-feed Sales incentives to customers The Group provides various sales incentives to its customers, including cash incentives in the form of commissions to certain third-party advertising agencies and noncash incentives such as discounts and advertising services provided free of charge in certain bundled arrangements, which are negotiated on a contract by contract basis with customers. The Group accounts for these incentives granted to customers as variable consideration in accordance with ASC 606. The amount of variable consideration is measured based on the most likely Live broadcasting and other valued added service (“VAS”) The Group operates and maintains live broadcasting channel whereby users can enjoy live performances provided by the hosts and interact with the hosts. Most of the hosts host the performance 606-10-55-39. point-in-time generally Proceeds received from the sales of virtual items before they consumed are recorded as “Deferred revenue”. Under the arrangements with the hosts, the Group shares with them a portion of the revenues derived from the sales of virtual items. The portion paid to hosts is recognized as “Cost of revenues” on the consolidated statements of operations and comprehensive loss. The other VAS mainly includes premium membership subscription and sales of virtual items for video, audio and comic content. The Group offers premium membership subscription services which provide subscribing members access to streaming of premium content in exchange for a non-refundable E-commerce E-commerce through e-commerce E-commerce 606-10-55-39, 606-10-32-25. Net revenues presented o Other Estimates and Judgments The Group estimates revenue of mobile game, live broadcasting and other VAS from the third-party payment processors in the current period when reasonable estimates of these amounts can be made. The processors provide reliable interim preliminary reporting within a reasonable time frame following the end of each month and the Group maintains records of sales data, both of which allow the Group to make reasonable estimates of revenue and therefore to recognize revenue during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Group believes are reasonable, but actual results may differ from the Group’s estimates. When the Group receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Group records any differences between estimated revenue on revenue Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to consideration. Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from game players in mobile games, from customers in advertising services, live broadcasting services e 943.4 s Practical expedients The Group has used the following practical expedients as allowed under ASC 606: The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed, as substantially all of the contracts have an original expected duration of one year or less. The Group expenses the costs to obtain a contract as incurred when the amortization period is one year or less. The following revenues For the Year Ended December 31, 2017 2018 2019 RMB in thousands Mobile game 2,058,226 2,936,331 3,597,809 Advertising 159,160 463,490 817,016 Live broadcasting and other 176,443 585,643 1,641,043 E-commerce 74,620 143,467 722,054 Total net revenues 2,468,449 4,128,931 6,777,922 |
Cost of revenues | u) Cost of revenues Costs of revenues consist primarily of revenue sharing costs to mobile games developers and distribution channels and payment channels, revenue sharing with the hosts, staff costs, content costs, servers and bandwidth service fees, depreciation expenses and other direct costs of providing these services as well as cost of merchandise sold. These costs are charged to the consolidated statements of operations and comprehensive loss as incurred. |
Related parties | v) 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. |
Net loss per share | w) Net loss per share Loss per share is computed in accordance with ASC 260, Earnings per Share two-class two-class Pre-IPO as-converted two-class Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. Potential ordinary shares include ordinary shares issuable upon the conversion of the Pre-IPO if-converted outstanding if-converted Shares |
Statutory reserves | x) Statutory reserves In accordance with China’s Company Laws, the Company’s VIEs in PRC must make appropriations from their after-tax , , non-distributable after-tax Pursuant to the laws applicable to China’s FIEs, the Company’s subsidiaries that are FIEs in China have to make appropriations from their a fter-tax after-tax The following table presents the Group’s appropriations to general reserve funds and statutory surplus funds for the years ended December 31, 2017, 2018 and 2019: For the Year Ended 2017 2018 2019 RMB in thousands Appropriations to general reserve funds and statutory surplus funds 2,480 3,591 5,797 |
Noncontrolling interests | y Noncontrolling interests For the Company’s majority-owned subsidiaries and consolidated VIEs, noncontrolling interests are recognized to reflect the portion of the equity which is not attributable, directly or indirectly, to the Company as the controlling shareholder. Noncontrolling interests acquired through a business combination are recognized at fair value at the acquisition The noncontrolling interest s |
Comprehensive income/(loss) | z Comprehensive (loss)/ Comprehensive (loss)/ |
Segment reporting | aa) Segment reporting Based on the criteria established by ASC , Segment Reporting , the Group’s chief operating decision maker has been identified as the Chairman of the Board of Directors and CEO, who reviews consolidated results of the Group when making decisions about allocating resources and assessing performance. The Group has internal reporting of revenue, cost and expenses by nature as a whole. Hence, the Group has only operating segment. The Company is domiciled in the Cayman Islands while the Group mainly operates its businesses in the PRC and earns majority of the revenues from external customers attributed to the PRC. |
Business Combinations | bb) Business c The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations on In a business combination achieved in stages, the Group re-measures s re-measurement on For the Company’s majority-owned subsidiaries and consolidated VIEs, noncontrolling interest s are not If a business combination is under common control, the acquired assets and liabilities are recognized at their historical book value. The consolidated financial statements include the results of the acquired entities from the earliest date presented or, if more recent, from the date when the entities first came under common control, regardless of the date of the combination. Consolidated financial statements for prior years would also be retrospectively adjusted for periods during which the entities were under common control . |
Recently issued accounting pronouncements | cc) Recently issued accounting pronouncements Financial Instruments-Credit Losses. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, 2016-13 expected 2016-13 Simplifying the Test for Goodwill Impairment 2017-04 “Simplifying the Test for Goodwill Impairment.” Fair Value Measurement. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Improvements to Accounting for Costs of Films and License Agreements for Program Materials. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, 2019-02 920-350 2019-02 |
Operations and Reorganization (
Operations and Reorganization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operations and Reorganization | |
Schedule of Company's major subsidiaries and VIEs and subsidiaries of the VIEs | Major Subsidiaries Place and Year of Incorporation Percentage Direct or Indirect Economic Principal Activities Bilibili HK Limited Hong Kong Y2014 100 Investment holding Hode HK Limited Hong Kong Y2014 100 Investment holding Bilibili Co., Ltd. Japan Y2014 100 Business development Hode Shanghai Limited. (“Hode Technology”) PRC Y2014 100 Technology development Shanghai Bilibili Technology Co., Ltd. PRC Y2016 100 Technology development Major VIEs and VIEs’ subsidiaries Place and Year of Incorporation Acquisition Percentage Direct Indirect Economic O Principal Activities Shanghai Hode Information Technology Co., Ltd. (“Shanghai Hode”) PRC Y2013 100 Mobile game operation Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) PRC Y2014 100 Video distribution Sharejoy Network Technology Co., Ltd. PRC Y2014 100 Game promotion and marketing Shanghai Hehehe Culture Communication Co., Ltd PRC Y2014 100 Comics distribution Shanghai Anime Tamashi Cultural Media Co., Ltd. PRC Y2015 100 E-commerce |
Schedule of combined financial information of the Group's VIEs included in the accompanying consolidated financial statements of the Group | December 31, December 31, RMB in thousands Current assets: Cash and cash equivalents 152,295 201,310 Time deposits 10,265 7,674 Accounts receivable, net 130,823 223,438 Amounts due from the Company and its subsidiaries 165,559 127,944 Receivables due from related parties — 170,535 Prepayments and other current assets 841,018 999,780 Short-term 252,943 672,787 Non-current Long-term 843,149 794,549 Other non-current 943,373 1,483,983 Total assets 3,339,425 4,682,000 Current liabilities: Accounts payable 1,078,070 1,454,924 Salary and welfare payable 94,699 128,343 Taxes payable 27,152 33,611 Deferred revenue 937,086 1,234,508 Amounts due to the Company and its subsidiaries 1,594,527 2,650,499 Accrued liabilities and other payables 318,568 222,078 Amount due to related parties 23,054 — Non-current liabilities Other long-term liabilities — 23,108 Total liabilitie s 4,073,156 5,747,071 For the Year Ended December 31, 2017 2018 2019 RMB in thousands Net revenues: Revenue from third parties 2,465,296 3,691,219 6,056,332 Revenue from the Company and its subsidiaries 22,751 443,405 531,830 Net revenues 2,488,047 4,134,624 6,588,162 Net loss (63,088 ) (587,932 ) (448,114 ) For the Year Ended December 31, 2017 2018 2019 RMB in thousands Net cash provided by operating activities 492,063 636,972 271,299 Net cash used in investing activities (632,549 ) (674,483 ) (1,518,931 ) Net cash provided by financing activities 179,707 130,592 1,300,740 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Schedule of future lease payments under operating leases | Future lease payments under operating leases as of December 31, 2019 were as follows: December 31, 2019 RMB in thousands 2020 93,741 2021 100,109 2022 89,399 2023 28,643 2024 357 Total future lease payments 312,249 Impact of discounting remaining lease payments (23,298) Total lease liabilities 288,951 Future lease payments under leases Operating Leases* RMB in thousands 2019 65,400 2020 72,230 2021 73,054 2022 69,681 Beyond 2022 19,544 * Amounts are based on ASC 840, Leases Leases |
Schedule of Lease Cost | For the Year Ended December 31, 2019 RMB in thousands Cash payments for operating leases 67,535 Right-of-use assets obtained in exchange for operating lease liabilities 96,692 |
Schedule of net revenues disaggregated by revenue sources | For the Year Ended December 31, 2017 2018 2019 RMB in thousands Mobile game 2,058,226 2,936,331 3,597,809 Advertising 159,160 463,490 817,016 Live broadcasting and other 176,443 585,643 1,641,043 E-commerce 74,620 143,467 722,054 Total net revenues 2,468,449 4,128,931 6,777,922 |
Schedule of appropriations to general reserve funds and statutory surplus funds | For the Year Ended 2017 2018 2019 RMB in thousands Appropriations to general reserve funds and statutory surplus funds 2,480 3,591 5,797 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Telecommunications service provider | |
Concentrations and Risks | |
Schedule of concentrations and risks | For the Year Ended 2017 2018 2019 Total number of telecommunications service providers 52 88 107 Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure 2 3 2 Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers 34 % 48 % 45 % |
Credit risk | |
Concentrations and Risks | |
Schedule of concentrations and risks | RMB in thousands December 31, December 31, Distribution channel A 63,762 118,860 |
Mobile games | |
Concentrations and Risks | |
Schedule of concentrations and risks | For the Year Ended December 31, 2017 2018 2019 Mobile game 1 72 % 74 % 58 % Mobile game 2 13 % 11 % 10 % |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Doubtful Accounts | |
Schedule of movements of the allowance for doubtful accounts | Balance at Charged to (write- Write-off Balance at RMB in thousands 2017 1,800 2,716 — 4,516 2018 4,516 10,904 (1,000 ) 14,420 2019 14,420 9,396 (6,120 ) 17,696 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and Other Current Assets | |
Summary of prepayments and other current assets | December 31, December 31, RMB in thousands Prepayments for revenue sharing cost* 462,883 542,971 Prepayments for content cost 130,619 226,500 Prepayments for sales tax 80,487 157,244 Interest income receivable 26,812 93,688 Inventories, net 55,032 69,914 Loans to investees or ongoing investments 84,075 64,463 Prepayments of marketing and other operational expenses 33,198 53,246 Prepayments /receivable s 44,951 43,838 Deposits 20,447 26,301 Prepayments to inventory suppliers 12,901 9,058 Others 39,446 28,678 Total 990,851 1,315,901 * App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheet as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going end-users. |
Short-term Investments (Tables)
Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Investments [Abstract] | |
Summary of short-term investments | December 31, 2018 December 31, 2019 RMB in thousands Financial products 858,021 1,070,113 Investment s — 80,918 Money market funds 87,317 109,779 Total 945,338 1,260,810 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and equipment, net | December 31, 2018 December 31, 2019 RMB in thousands Leasehold improvements 51,186 76,772 Servers and computers 481,695 765,110 Others 19,127 23,211 Total 552,008 865,093 Less: accumulated depreciation (157,110 ) (349,006 ) Net book value 394,898 516,087 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of intangible assets, net | As of December 31, 2018 Gross Accumulated Net RMB in thousands Licensed copyrights of content 1,997,175 (921,565 ) 1,075,610 License rights of mobile games 18,098 (15,163 ) 2,935 Domain names and others 412,202 (71,312 ) 340,890 Total 2,427,475 (1,008,040 ) 1,419,435 As of December 31, 2019 Gross Accumulated Net RMB in thousands Licensed copyrights of content 3,072,959 (1,736,608 ) 1,336,351 License rights of mobile games 71,703 (35,863 ) 35,840 Domain names and others 434,089 (148,947 ) 285,142 Total 3,578,751 (1,921,418 ) 1,657,333 |
Schedule of intangible assets amortization expense for future years | Intangible assets amortization expense RMB in thousands 2020 705,062 2021 390,818 2022 228,651 2023 123,159 2024 74,550 Thereafter 135,093 Total expected amortization expense 1,657,333 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination, Goodwill [Abstract] | |
Schedule of Goodwill | December 31, December 31, RMB in thousands Beginning balance 50,967 941,488 Additions (Note 26) 890,521 70,538 Ending balance 941,488 1,012,026 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxation | |
Schedule of composition of income tax expenses | For the Year Ended December 31, 2017 2018 2019 RMB in thousands Current income tax expense 8,881 14,909 29,452 Withholding income tax expense — 11,079 16,894 Deferred income tax expense — — (10,479 ) Total 8,881 25,988 35,867 |
Schedule of reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | For the Year Ended 2017 2018 2019 % % % Statutory income tax rate 25.00 25.00 25.00 Permanent differences (13.22 ) (3.76 ) (0.83 ) Tax rate difference from statutory rate in other jurisdictions* (20.07 ) (0.92 ) (0.39 ) Tax effect of preferential tax treatments 3.76 (3.15 ) (8.48 ) Withholding tax — (2.05 ) (1.33 ) Change in valuation allowance (0.55 ) (19.94 ) (16.80 ) Effective income tax rate (5.08 ) (4.82 ) (2.83 ) * It is primarily due to the tax effect of the Company as a tax-exempt |
Schedule of net operating tax loss carry forwards | RMB in Loss expiring in 2020 78,943 Loss expiring in 2021 53,320 Loss expiring in 2022 137,483 Loss expiring in 2023 457,884 Loss expiring in 2024 1,316,206 Total 2,043,836 |
Schedule of tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities | December 31, December 31, RMB in thousands Deferred tax assets: Deferred revenue, primarily for games 90,311 95,806 Accrued expenses and other payables 25,984 82,351 Advertising expenses in excess of deduction limit 312 7,507 Net operating tax loss carry forwards 176,439 360,975 Others 909 1,199 Total deferred tax assets 293,955 547,838 Less: valuation allowance (293,955 ) (537,359 ) Net deferred tax assets — 10,479 |
Schedule of movement of the aggregate valuation allowances for deferred tax assets | Balance at Re-measurement due to Addition Expiration of loss carry Balance at RMB in thousands 2017 (183,091 ) 23,074 (962 ) 3,715 (157,264 ) 2018 (157,264 ) 22,502 (159,690 ) 497 (293,955 ) 2019 (293,955 ) — (248,896 ) 5,492 (537,359 ) |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Payable | |
Summary of taxes payable | December 31, 2018 December 31, 2019 RMB in thousands Withholding individual income taxes for employees 7,844 12,941 VAT payable 13,920 16,519 EIT payable 6,913 20,599 Withholding income tax payable 5,510 12,302 Others 4,318 5,495 Total 38,505 67,856 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other Payables | |
Summary of accrued liabilities and other payables | December 31, December 31, RMB in thousands Accrued marketing expenses 71,217 229,457 Leasing liabilities - current portion — 95,901 Consideration payable for acquisitions and investments 502,279 79,059 Advances to/payables from third parties 21,966 76,893 Payables to producers and licensors 9,357 25,898 Professional fees 13,492 22,562 Other staff related cost 18,685 13,791 Interest payable — 11,990 Others 33,446 20,212 Total 670,442 575,763 |
Pre-IPO Preferred Shares (Table
Pre-IPO Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Pre-IPO Preferred Shares | |
Schedule of Pre-IPO Preferred Shares activities | Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Preferred Shares Pre-IPO Preferred Shares Total Mezzanine Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number of shares Amount Number of shares Amount Number Amount RMB in thousands, except for share data Balance as of December 31, 2016 7,078,502 15,640 14,643,281 79,349 22,794,876 302,257 39,297,373 1,085,154 42,585,304 1,344,896 954,605 34,317 — — — — 127,353,941 2,861,613 Issuance of Pre-IPO — — — — — — — — — — — — 1,154,643 49,086 13,759,564 689,069 14,914,207 738,155 Redesignation of Pre-IPO Pre-IPO — — — — — — (11,301,189 ) (351,928 ) — — — — 11,301,189 481,172 — — — 129,244 Share based compensation in connection with redesignation of Pre-IPO Pre-IPO — — — — — — — — — — — — — 10,474 — — — 10,474 Redesignation of Pre-IPO Pre-IPO — — — — — — — — — — — — 645,357 17,003 — — 645,357 17,003 Accretion to Pre-IPO — 985 — 6,332 — 23,302 — 64,129 — 97,455 — 2,446 — 28,650 — 35,255 — 258,554 Balance as of December 31, 2017 7,078,502 16,625 14,643,281 85,681 22,794,876 325,559 27,996,184 797,355 42,585,304 1,442,351 954,605 36,763 13,101,189 586,385 13,759,564 724,324 142,913,505 4,015,043 Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Preferred Shares Pre-IPO Preferred Shares Total Mezzanine Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number of shares Amount Number of shares Amount Number Amount RMB in thousands, except for share data Balance as of December 31, 2017 7,078,502 16,625 14,643,281 85,681 22,794,876 325,559 27,996,184 797,355 42,585,304 1,442,351 954,605 36,763 13,101,189 586,385 13,759,564 724,324 142,913,505 4,015,043 Accretion to Pre-IPO — 242 — 1,448 — 5,328 — 13,633 — 23,024 — 578 — 9,124 — 11,228 — 64,605 Redesignation of Pre-IPO — — — — — — — — (1,104,535 ) (38,007 ) — — — — — — (1,104,535 ) (38,007 ) Redesignation of Pre-IPO (7,078,502 ) (16,867 ) (14,643,281 ) (87,129 ) (22,794,876 ) (330,887 ) (27,996,184 ) (810,988 ) (41,480,769 ) (1,427,368 ) (954,605 ) (37,341 ) (13,101,189 ) (595,509 ) (13,759,564 ) (735,552 ) (141,808,970 ) (4,041,641 ) Balance as of December 31, 2018 — — — — — — — — — — — — — — — — — — |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Schedule of employee welfare benefits expenses | The following table presents the Group’s employee welfare benefits expenses for the years ended December 31, 2017, 2018 and 2019: For the Year Ended December 31, 2017 2018 2019 RMB in thousands Contributions to medical and pension schemes 91,302 158,113 215,553 Other employee benefits 14,595 23,958 24,180 Total 105,897 182,071 239,733 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of valuation assumptions | For the Year Ended December 31, 2017 2018 2019 Expected volatility 42.5%-45.8 % 47.8%-48.4 % 49.6%-52.1 % Weighted average volatility 43.3 % 48.3 % 50.8 % Expected dividends — — — Risk-free rate 1.5% - 2.3 % 2.6%-2.8 % 1.4%-2.4 % Contractual term (in years) 6 6 6 |
Schedule of share options activities | Employees Senior Consultants Total Weighted Weighted Aggregate (In thousands) (In thousands) (In thousands) (In thousands) US$ (In years) (RMB in Outstanding at January 1, 2017 4,992 6,580 — 11,572 0.0001 5.02 224,620 Granted 3,419 5,115 700 9,234 0.0001 Exercised — — — — 0.0001 Forfeited (287 ) (1,100 ) — (1,387 ) 0.0001 Outstanding at December 31, 8,124 10,595 700 19,419 0.0001 4.80 880,197 Outstanding at January 1, 2018 8,124 10,595 700 19,419 0.0001 4.80 880,197 Granted 2,587 620 — 3,207 0.0001 Exercised (2,387 ) (5,543 ) (212 ) (8,142 ) 0.0001 Forfeited (683 ) (1,437 ) (50 ) (2,170 ) 0.0001 Outstanding at December 31, 7,641 4,235 438 12,314 0.0001 4.46 1,233,028 Outstanding at January 1, 2019 7,641 4,235 438 12,314 0.0001 4.46 1,233,028 Granted 2,464 730 — 3,194 0.0001 Exercised (1,352 ) (710 ) (193 ) (2,255 ) 0.0001 Forfeited (479 ) (600 ) — (1,079 ) 0.0001 Outstanding at December 31, 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Exercisable as of December 31, 2019 955 — 145 1,100 0.0001 2.59 142,892 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Loss Per Share | |
Schedule of computation of basic and diluted net loss per share | For the Year Ended December 31, 2017 2018 2019 RMB in thousands, except share and per Numerator: Net loss (183,750 ) (565,021 ) (1,303,570 ) Accretion to Pre-IPO (258,554 ) (64,605 ) — Deemed dividend in connection with repurchase of Pre-IPO (129,244 ) — — Net loss attributable to noncontrolling interests — 13,301 14,597 Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation (571,548 ) (616,325 ) (1,288,973 ) Denominator: Weighted average number of ordinary shares outstanding, basic 69,938,570 233,047,703 323,161,680 Weighted average number of ordinary shares outstanding, diluted 69,938,570 233,047,703 323,161,680 Net loss per share, basic (8.17 ) (2.64 ) (3.99 ) Net loss per share, diluted (8.17 ) (2.64 ) (3.99 ) |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions and Balances | |
Schedule of significant related party transactions | For the Year Ended December 31, 2017 2018 2019 RMB in thousands Purchases of goods and services 3,741 162,992 87,597 Transfer of long-term investments * 12,750 3,250 539,646 * In June 2019, to focus the Company’s efforts and resources on its core businesses, the Company transferred several equity investments of the Group to an investment fund. The Group contributed a total of RMB220.0 million cash into this fund as a limited partner, which is accounted for as an equity method investment. The cost of the equity investments transferred was RMB465.8 million. The consideration was RMB539.6 million, which was based on the estimated fair value of the investments. The difference between the consideration and cost of the investments was recognized as investment income. As of December 31, 2019, the consideration receivable was RMB143.7 million. The transactions in 2017 and 2018 referred to the investments transferred to an entity controlled by the Group’s major shareholders. |
Schedule of significant related party balances | The Group had the following significant related party balances as of December 31, 2018 and 2019 respectively: December 31, December 31, RMB in thousands Amount due from related parties Due from an investment fund — Due from other related parties — 24,755 Total — 195,290 Amount due to related parties Due to Chaodian 50,331 — Total 50,331 — |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Zenith Group | |
Acquisitions | |
Schedule of purchase price allocation | Amount Amortization RMB in thousands Net assets acquired 30,252 Intangible assets —Tradename 54,974 8 —Non-compete clause 2,230 3 Noncontrolling interests (121,154 ) Goodwill 360,039 Total 326,341 Total purchase price comprised of: Amount RMB in thousands Cash consideration 296,796 Fair value of previously held equity interests 29,545 Total 326,341 |
Chaodian Group | |
Acquisitions | |
Schedule of purchase price allocation | The allocation of the consideration of the assets acquired and liabilities assumed based on their carrying Amount RMB in thousands Consideration 1,198,198 Cash and cash equivalents 1,199,117 Accounts receivable, net 95,147 Goodwill 36,120 Other asset acquired 68,214 Total assets acquired 1,398,598 Accrued liabilities and other payables (323,025 ) Other liabilities assumed (89,217 ) Total liability assumed (412,242 ) Noncontrolling interests (276,621 ) Deemed dividend 488,463 Total 1,198,198 |
Other acquisitions | |
Acquisitions | |
Schedule of purchase price allocation | For the Year Ended December 31, Amortization 2018 2019 Amount RMB in thousands Net assets acquired 62,800 65,582 Intangible assets —Tradename 104,000 — 5 —User base 21,500 — 3 years —Copyrights 23,500 — 9 3 —Technology 9,000 — 6 8 Noncontrolling (107,505 ) (30,000 ) Goodwill 530,482 34,418 Total 643,777 70,000 Total purchase price comprised of: Amount RMB in thousands Cash consideration 391,071 70,000 Fair value of previously held equity interests 252,706 — Total 643,777 70,000 |
Operations and Reorganization -
Operations and Reorganization - The Group (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Shanghai Hode Information Technology Co., Ltd. ("Shanghai Hode"). | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC Y2013 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Mobile game operation |
Shanghai Kuanyu Digital Technology Co., Ltd. ("Shanghai Kuanyu"). | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC Y2014 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Video distribution |
Sharejoy Network Technology Co., Ltd. | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC Y2014 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Game promotion and marketing |
Shanghai Hehehe Culture Communication Co., Ltd | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC Y2014 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Comics distribution |
Shanghai Anime Tamashi Cultural Media Co. Ltd. | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC Y2015 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | E-commerce |
Bilibili HK Limited | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | Hong Kong Y2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Investment holding |
Hode HK Limited | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | Hong Kong Y2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Investment holding |
Bilibili Co., Ltd. | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | Japan Y2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Business development |
Hode Shanghai Limited. ("Hode Technology") | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC Y2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Technology development |
Shanghai Bilibili Technology Co., Ltd | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC Y2016 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Technology development |
Operations and Reorganization_2
Operations and Reorganization - Initial public offering ("IPO") and followed offerings (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2019CNY (¥)shares | Apr. 30, 2019USD ($)$ / sharesshares | Oct. 31, 2018CNY (¥)shares | Oct. 31, 2018USD ($)shares | Apr. 30, 2018CNY (¥)shares | Apr. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Operations and Reorganization [Line Items] | |||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 1,647,711 | $ 236,679 | ¥ 4,952,606 | ||||||
Convertible senior notes (the "2026 Notes") due 2026 [Member] | |||||||||
Operations and Reorganization [Line Items] | |||||||||
Convertible senior notes aggregate principal amount | $ | $ 500,000 | ||||||||
Notes And Primary Offering [Member] | |||||||||
Operations and Reorganization [Line Items] | |||||||||
Proceeds from common stock and notes issued net of issuance cost | ¥ 5,003,800 | $ 733,900 | ¥ 5,003,800 | $ 733,900 | |||||
Class Z Ordinary Shares | |||||||||
Operations and Reorganization [Line Items] | |||||||||
Ordinary shares, issued (in shares) | 25,063,451 | 25,063,451 | 42,000,000 | 42,000,000 | |||||
Net proceeds from the offering, after deducting commissions and offerings expenses | ¥ 2,781,800 | $ 443,300 | |||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 2,170,800 | $ 317,200 | |||||||
ADSs | |||||||||
Operations and Reorganization [Line Items] | |||||||||
Ordinary shares, issued (in shares) | 25,063,451 | 25,063,451 | 42,000,000 | 42,000,000 | |||||
Price per share | $ / shares | $ 11.50 | ||||||||
American Depository Shares Class Z Common Stock [Member] | |||||||||
Operations and Reorganization [Line Items] | |||||||||
Ordinary shares, issued (in shares) | 14,173,813 | 14,173,813 | 25,063,451 | 25,063,451 | 42,000,000 | 42,000,000 | |||
Price per share | $ / shares | $ 18 | $ 11.50 | |||||||
Net proceeds from the offering, after deducting commissions and offerings expenses | ¥ 2,170,800 | $ 317,200 | ¥ 2,781,800 | $ 443,300 | |||||
Proceeds from common stock and notes issued net of issuance cost | ¥ 1,647,700 | $ 245,700 |
Operations and Reorganization_3
Operations and Reorganization - Contractual agreements with major VIEs (Details) - VIEs - Exclusive Technology Consulting and Services Agreements - The Company or its relevant subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Contractual agreements with major VIEs | |
Term of agreement | 10 years |
Termination notice before the term ends | 90 days |
Operations and Reorganization_4
Operations and Reorganization - Combined financial information of the Group's VIEs and Others (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019CNY (¥)entity | Dec. 31, 2019USD ($)entity | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016CNY (¥) | |
Current assets: | |||||||
Cash and cash equivalents | ¥ 4,962,660 | ¥ 3,540,031 | ¥ 762,882 | $ 712,842 | $ 508,494 | ¥ 387,198 | |
Time deposits | 1,844,558 | 749,385 | 264,954 | ||||
Accounts receivable, net | 744,845 | 324,392 | 106,990 | ||||
Prepayments and other current assets | 1,315,901 | 990,851 | 189,017 | ||||
Short-term investments | 1,260,810 | 945,338 | 181,104 | ||||
Non-current assets: | |||||||
Long-term investments, net | 1,251,129 | 979,987 | 179,713 | ||||
Other non-current assets | 301,916 | 43,368 | |||||
Total assets | 15,516,567 | 10,490,036 | 2,228,815 | ||||
Current liabilities: | |||||||
Accounts payable | 1,904,042 | 1,307,598 | 273,499 | ||||
Salary and welfare payable | 355,936 | 246,815 | 51,127 | ||||
Taxes payable | 67,856 | 38,505 | 9,747 | ||||
Deferred revenue | 1,369,000 | 985,143 | 196,645 | ||||
Accrued liabilities and other payables | 575,763 | 670,442 | 82,702 | ||||
Non-current liabilities: | |||||||
Total liabilities | 7,880,107 | 3,298,834 | $ 1,131,905 | ||||
Net revenues: | |||||||
Net revenues | 6,777,922 | $ 973,588 | 4,128,931 | 2,468,449 | |||
Net loss | (1,303,570) | (187,245) | (565,021) | (183,750) | |||
Net cash provided by operating activities | 194,551 | 27,946 | 737,286 | 464,550 | |||
Net cash used in investing activities | (3,958,277) | (568,570) | (3,196,394) | (716,254) | |||
Net cash provided by financing activities | 5,078,842 | $ 729,530 | 4,974,810 | 675,533 | |||
Assets of VIE's used to settle obligations of respective VIE's registered capital | 94,800 | 12,200 | |||||
Assets of VIE's used to settle obligations of respective VIE's non-distributable statutory reserves | ¥ 12,500 | 7,700 | |||||
Number of VIE having variable interest but not primary beneficiary | entity | 0 | 0 | |||||
Consolidated VIEs without recourse to the primary beneficiary | |||||||
Current assets: | |||||||
Cash and cash equivalents | ¥ 201,310 | 152,295 | |||||
Time deposits | 7,674 | 10,265 | |||||
Accounts receivable, net | 223,438 | 130,823 | |||||
Amounts due from the Company and its subsidiaries | 127,944 | 165,559 | |||||
Receivables due from related parties | 170,535 | ||||||
Prepayments and other current assets | 999,780 | 841,018 | |||||
Short-term investments | 672,787 | 252,943 | |||||
Non-current assets: | |||||||
Long-term investments, net | 794,549 | 843,149 | |||||
Other non-current assets | 1,483,983 | 943,373 | |||||
Total assets | 4,682,000 | 3,339,425 | |||||
Current liabilities: | |||||||
Accounts payable | 1,454,924 | 1,078,070 | |||||
Salary and welfare payable | 128,343 | 94,699 | |||||
Taxes payable | 33,611 | 27,152 | |||||
Deferred revenue | 1,234,508 | 937,086 | |||||
Amounts due to the Company and its subsidiaries | 2,650,499 | 1,594,527 | |||||
Accrued liabilities and other payables | 222,078 | 318,568 | |||||
Amount due to related parties | 23,054 | ||||||
Non-current liabilities: | |||||||
Other long-term liabilities | 23,108 | ||||||
Total liabilities | 5,747,071 | 4,073,156 | |||||
Net revenues: | |||||||
Net revenues | 6,588,162 | 4,134,624 | 2,488,047 | ||||
Net loss | (448,114) | (587,932) | (63,088) | ||||
Net cash provided by operating activities | 271,299 | 636,972 | 492,063 | ||||
Net cash used in investing activities | (1,518,931) | (674,483) | (632,549) | ||||
Net cash provided by financing activities | 1,300,740 | 130,592 | 179,707 | ||||
Consolidated VIEs without recourse to the primary beneficiary | Third parties | |||||||
Net revenues: | |||||||
Net revenues | 6,056,332 | 3,691,219 | 2,465,296 | ||||
Consolidated VIEs without recourse to the primary beneficiary | Company and its subsidiaries | |||||||
Net revenues: | |||||||
Net revenues | ¥ 531,830 | ¥ 443,405 | ¥ 22,751 |
Operations and Reorganization_5
Operations and Reorganization - Liquidity (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2019CNY (¥) | Apr. 30, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Issuance of preferred shares | |||||||
Net losses | ¥ 1,303,570 | $ 187,245 | ¥ 565,021 | ¥ 183,750 | |||
Net cash (used in)/provided by operating activities | 194,551 | 27,946 | 737,286 | ¥ 464,550 | |||
Accumulated deficit | (4,145,606) | ¥ (2,842,690) | $ (595,479) | ||||
Notes And Primary Offering [Member] | |||||||
Issuance of preferred shares | |||||||
Proceeds From Issuance Initial Public Offering And Notes Net Of Offering Costs | ¥ 5,003,800 | $ 733,900 | ¥ 5,003,800 | $ 733,900 |
Significant Accounting Polici_4
Significant Accounting Policies - Convenience Translation, Cash & cash equivalents (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥)¥ / $ | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($)¥ / $ | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash and cash equivalents and time deposits | ||||||
Convenience translation rate (RMB to USD) | ¥ / $ | 6.9618 | 6.9618 | ||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | ¥ 4,962,660 | ¥ 3,540,031 | $ 712,842 | $ 508,494 | ¥ 762,882 | ¥ 387,198 |
Time deposits | 1,844,558 | 749,385 | 264,954 | |||
Restricted cash | 0 | 0 | ||||
PRC Subsidiaries and Variable Interest Entities | ||||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | ¥ 1,596,000 | ¥ 377,800 | ||||
Cash and cash equivalents held by PRC subsidiaries and VIEs (as a percent) | 32.00% | 11.00% | ||||
Cash held in accounts managed by online payment platforms | ||||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | ¥ 26,800 | ¥ 10,800 | ||||
Denominated in US dollars | ||||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | 4,674,600 | 3,305,300 | $ 670,100 | $ 481,600 | ||
Time deposits | ¥ 1,844,600 | ¥ 749,400 |
Significant Accounting Polici_5
Significant Accounting Policies - Property and equipment, Goodwill and Impairment of long-lived assets other than goodwill and intangible assets (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies | |||
Goodwill impairment charges | ¥ 0 | ¥ 0 | ¥ 0 |
Impairment charge of long-lived assets other than goodwill, licensed copyrights and production costs | ¥ 0 | ¥ 0 | ¥ 0 |
Significant Accounting Polici_6
Significant Accounting Policies - Intangible assets (Details) - Domain names and others | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Maximum | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Significant Accounting Polici_7
Significant Accounting Policies - Leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | ||
Significant Accounting Policies | |||||
Total right-of use assets | ¥ 235,700 | ||||
Lease expire | Dec. 31, 2024 | ||||
Weighted average term | 3 years 2 months 12 days | ||||
Discount rate | 4.75% | ||||
Operating lease rent expense | ¥ 55,800 | ¥ 55,000 | |||
Operating Lease, Cost | ¥ 79,400 | ||||
Operating Leases [Abstract] | |||||
2020 | 93,741 | ||||
2021 | 100,109 | ||||
2022 | 89,399 | ||||
2023 | 28,643 | ||||
2024 | 357 | ||||
Total future lease payments | 312,249 | ||||
Impact of discounting remaining lease payments | (23,298) | ||||
Total lease liabilities | ¥ 288,951 | ||||
Under Leases [Abstract] | |||||
2019 | [1] | 65,400 | |||
2020 | [1] | 72,230 | |||
2021 | [1] | 73,054 | |||
2022 | [1] | 69,681 | |||
Beyond 2022 | [1] | ¥ 19,544 | |||
[1] | Amounts are based on ASC 840, Leases that were superseded upon the Company’s adoption of ASC 842, Leases on January 1, 2019. |
Significant Accounting Polici_8
Significant Accounting Policies - Schedule of Lease Cost (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Cash Flow, Operating Activities, Lessee [Abstract] | |
Cash payments for operating leases | ¥ 67,535 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 96,692 |
Significant Accounting Polici_9
Significant Accounting Policies - Sales & marketing expenses, Share-based compensation & Employees benefits & Taxation (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies | |||
Advertising expenses | ¥ 934.7 | ¥ 436.5 | ¥ 168.7 |
Cumulative share-based compensation expenses | ¥ 28.9 |
Significant Accounting Polic_10
Significant Accounting Policies - Revenue Recognition (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Significant Accounting Policies | ||||
Practical expedient related to amortization period | true | true | ||
Practical expedient related to performance obligations | true | true | ||
Deferred revenue, revenue recognized | ¥ 943,400 | ¥ 571,400 | ||
Total net revenues | 6,777,922 | $ 973,588 | 4,128,931 | ¥ 2,468,449 |
Mobile game | ||||
Significant Accounting Policies | ||||
Total net revenues | 3,597,809 | 2,936,331 | 2,058,226 | |
Advertising | ||||
Significant Accounting Policies | ||||
Total net revenues | 817,016 | 463,490 | 159,160 | |
Live broadcasting and other VAS | ||||
Significant Accounting Policies | ||||
Total net revenues | 1,641,043 | 585,643 | 176,443 | |
E-commerce and others | ||||
Significant Accounting Policies | ||||
Total net revenues | ¥ 722,054 | ¥ 143,467 | ¥ 74,620 | |
Maximum | Live broadcasting and other VAS | ||||
Significant Accounting Policies | ||||
Period recognized for time-based virtual item | 1 year | 1 year |
Significant Accounting Polic_11
Significant Accounting Policies - Statutory reserves (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies | |||
Appropriations to general reserve funds and statutory surplus funds | ¥ 5,797 | ¥ 3,591 | ¥ 2,480 |
Minimum | |||
Significant Accounting Policies | |||
After tax profit to be transferred to statutory surplus fund (as a percent) | 10.00% | ||
After tax profit to be transferred to general reserve fund (as a percent) | 10.00% | ||
Maximum | |||
Significant Accounting Policies | |||
Limit of surplus fund as a percentage of registered capital, beyond which no further appropriation is required | 50.00% | ||
Limit of general reserve fund as a percentage of registered capital, beyond which no further appropriation is required | 50.00% |
Significant Accounting Polic_12
Significant Accounting Policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Significant Accounting Policies | |
Number of operating segments | 1 |
Concentrations and Risks (Detai
Concentrations and Risks (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)item | Dec. 31, 2018CNY (¥)item | Dec. 31, 2017item | Dec. 31, 2019USD ($) | |
Concentrations and Risks | ||||
Accounts receivable, net | ¥ 744,845 | ¥ 324,392 | $ 106,990 | |
Telecommunications service provider | ||||
Concentrations and Risks | ||||
Total number of telecommunications service providers | 107 | 88 | 52 | |
Telecommunications service provider | Servers and bandwidth expenditure | ||||
Concentrations and Risks | ||||
Number of service providers providing 10% or more of the Group's servers and bandwidth expenditure | 2 | 3 | 2 | |
Concentration risk percentage | 45.00% | 48.00% | 34.00% | |
Credit risk | Accounts receivable | Distribution channel A | ||||
Concentrations and Risks | ||||
Number of distribution channels with receivable balance exceeding 10% of the Group's accounts receivable | 1 | 1 | ||
Accounts receivable, net | ¥ | ¥ 118,860 | ¥ 63,762 | ||
Distribution channel risk | Net revenues | Distribution channel | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 17.00% | 29.00% | 38.00% | |
Mobile games | Mobile game | Net revenues | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 53.00% | 71.00% | 83.00% | |
Mobile games | Mobile game 1 | Mobile game revenues | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 58.00% | 74.00% | 72.00% | |
Mobile games | Mobile game 2 | Mobile game revenues | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 10.00% | 11.00% | 13.00% |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Allowance for Doubtful Accounts | ||||
Balance at January 1 | ¥ 14,420 | ¥ 4,516 | ¥ 1,800 | |
Charged to (write-back against) cost and expenses | 9,396 | $ 1,350 | 10,904 | 2,716 |
Write-off of receivable balances and corresponding provisions | (6,120) | (1,000) | ||
Balance at December 31 | ¥ 17,696 | ¥ 14,420 | ¥ 4,516 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Prepayments and Other Current Assets | ||||
Prepayments for revenue sharing cost | [1] | ¥ 542,971 | ¥ 462,883 | |
Prepayments for content cost | 226,500 | 130,619 | ||
Prepayments for sales tax | 157,244 | 80,487 | ||
Interest income receivable | 93,688 | 26,812 | ||
Inventories, net | 69,914 | 55,032 | ||
Loans to investees or ongoing investments | 64,463 | 84,075 | ||
Prepayments of marketing and other operational expenses | 53,246 | 33,198 | ||
Prepayments/receivables relating to jointly invested content | 43,838 | 44,951 | ||
Deposits | 26,301 | 20,447 | ||
Prepayments to inventory suppliers | 9,058 | 12,901 | ||
Others | 28,678 | 39,446 | ||
Total | ¥ 1,315,901 | $ 189,017 | ¥ 990,851 | |
[1] | App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheet as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going services to end-users. The related direct and incremental platform commissions as well as game developers’ licensing fees are deferred and reported in “Prepayments and Other Current Assets” on the consolidated balance sheets. |
Short-term Investments (Details
Short-term Investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Short-term Investments | ||||
Short-term investments | ¥ 1,260,810 | ¥ 945,338 | $ 181,104 | |
Investment income related to short-term investments | (3,100) | 13,800 | ¥ 39,000 | |
Financial products | ||||
Short-term Investments | ||||
Short-term investments | 1,070,113 | 858,021 | ||
Investments in publicly traded companies | ||||
Short-term Investments | ||||
Short-term investments | 80,918 | |||
Money market funds | ||||
Short-term Investments | ||||
Short-term investments | ¥ 109,779 | ¥ 87,317 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Property and Equipment, Net | |||||
Property plant and equipment, gross | ¥ 865,093 | ¥ 552,008 | |||
Less: accumulated depreciation | (349,006) | (157,110) | |||
Net book value | 516,087 | 394,898 | $ 74,131 | ||
Depreciation expenses | 191,784 | $ 27,548 | 99,714 | ¥ 38,356 | |
Leasehold improvements | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | 76,772 | 51,186 | |||
Servers and computers | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | 765,110 | 481,695 | |||
Others | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | ¥ 23,211 | ¥ 19,127 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Intangible Assets, Net | ||||
Gross carrying value | ¥ 3,578,751,000 | ¥ 2,427,475,000 | ||
Accumulated amortization | (1,921,418,000) | (1,008,040,000) | ||
Total | 1,657,333,000 | 1,419,435,000 | $ 238,061 | |
Amortization expenses | 905,600,000 | 542,700,000 | ¥ 260,600,000 | |
Impairment charge | 0 | 0 | ¥ 0 | |
Licensed copyrights of content | ||||
Intangible Assets, Net | ||||
Gross carrying value | 3,072,959,000 | 1,997,175,000 | ||
Accumulated amortization | (1,736,608,000) | (921,565,000) | ||
Total | ¥ 1,336,351,000 | 1,075,610,000 | ||
Weighted-average useful lives | 3 years 2 months 12 days | |||
License rights of mobile games | ||||
Intangible Assets, Net | ||||
Gross carrying value | ¥ 71,703,000 | 18,098,000 | ||
Accumulated amortization | (35,863,000) | (15,163,000) | ||
Total | 35,840,000 | 2,935,000 | ||
Domain names and others | ||||
Intangible Assets, Net | ||||
Gross carrying value | 434,089,000 | 412,202,000 | ||
Accumulated amortization | (148,947,000) | (71,312,000) | ||
Total | ¥ 285,142,000 | ¥ 340,890,000 |
Intangible Assets, Net - Intang
Intangible Assets, Net - Intangible assets amortization expense for future years (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Intangible assets amortization expense | |||
2020 | ¥ 705,062 | ||
2021 | 390,818 | ||
2022 | 228,651 | ||
2023 | 123,159 | ||
2024 | 74,550 | ||
Thereafter | 135,093 | ||
Total | ¥ 1,657,333 | $ 238,061 | ¥ 1,419,435 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
GOODWILL | ||||
Beginning balance | ¥ 941,488,000 | ¥ 50,967,000 | ||
Additions (Note 26) | 70,538,000 | 890,521,000 | ||
Ending balance | 1,012,026,000 | $ 145,368 | 941,488,000 | ¥ 50,967,000 |
Impairment charge recognized | ¥ 0 | ¥ 0 | ¥ 0 |
Long-term Investments, Net (Det
Long-term Investments, Net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Long-term Investments, Net | ||||
Investment gain of alternative measure method investments | ¥ 0 | ¥ 34,200,000 | ||
Carrying value of equity investments without readily determinable fair value | 666,000,000 | 793,100,000 | ||
Impairment charges for long-term investments | 5,900,000 | $ 847 | 46,375,000 | ¥ 15,989,000 |
Equity Method Investments carrying value | 280,000,000 | |||
Investment income (loss) related to short-term investments | 24,200,000 | |||
Fair value change on financial products with original maturities greater than one year | ¥ 13,200,000 | ¥ (2,900,000) | ¥ 0 |
Taxation - Composition of incom
Taxation - Composition of income tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Taxation | ||||
Current income tax expense | ¥ 29,452 | ¥ 14,909 | ¥ 8,881 | |
Withholding income tax expense | 16,894 | 11,079 | ||
Deferred income tax expense | (10,479) | $ (1,505) | ||
Total | ¥ 35,867 | $ 5,152 | ¥ 25,988 | ¥ 8,881 |
Taxation - Income taxes (Detail
Taxation - Income taxes (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019HKD ($) | Dec. 31, 2018HKD ($) | Dec. 31, 2017 | Dec. 31, 2019CNY (¥) | ||
Income taxes | |||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | ||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | |||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | ||
Permanent differences | (0.83%) | (3.76%) | (13.22%) | ||
Tax rate difference from statutory rate in other jurisdictions | [1] | (0.39%) | (0.92%) | (20.07%) | |
Tax effect of preferential tax treatments | (8.48%) | (3.15%) | 3.76% | ||
Withholding tax | (1.33%) | (2.05%) | |||
Change in valuation allowance | (16.80%) | (19.94%) | (0.55%) | ||
Effective income tax rate | (2.83%) | (4.82%) | (5.08%) | ||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | ¥ 2,043,836,000 | ||||
Hong Kong [Member] | |||||
Income taxes | |||||
Revenue from Subsidiary | $ | $ 2 | $ 2 | |||
Percentage of Tax rate | 16.50% | 16.50% | |||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | |||||
Tax rate difference from statutory rate in other jurisdictions | 8.25% | 8.25% | |||
Loss expiring in 2020 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 78,943,000 | ||||
Loss expiring in 2021 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 53,320,000 | ||||
Loss expiring in 2022 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 137,483,000 | ||||
Loss expiring in 2023 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 457,884,000 | ||||
Loss expiring in 2024 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 1,316,206,000 | ||||
Cayman Islands | |||||
Income taxes | |||||
Withholding tax amount | ¥ 0 | ||||
Hong Kong | |||||
Income taxes | |||||
Income tax rate (as a percent) | 16.50% | ||||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | |||||
Statutory income tax rate | 16.50% | ||||
China | |||||
Income taxes | |||||
Income tax rate (as a percent) | 25.00% | ||||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | |||||
Statutory income tax rate | 25.00% | ||||
China | Shanghai Hode | |||||
Income taxes | |||||
Preferential tax rate (as a percent) | 15.00% | ||||
China | Shanghai Bilibili Technology Co., Ltd | |||||
Income taxes | |||||
Preferential tax rate (as a percent) | 15.00% | ||||
[1] | It is primarily due to the tax effect of the Company as a tax-exempt entity incorporated in the Cayman Islands. |
Taxation - Sales tax (Details)
Taxation - Sales tax (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Services rendered | |
Sales tax | |
Value added tax rate (as a percent) | 6.00% |
Goods sold | Minimum | |
Sales tax | |
Value added tax rate (as a percent) | 13.00% |
Goods sold | Maximum | |
Sales tax | |
Value added tax rate (as a percent) | 16.00% |
Taxation - Deferred tax assets
Taxation - Deferred tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax assets: | |||||
Deferred revenue, primarily for games | ¥ 95,806 | ¥ 90,311 | |||
Accrued expenses and other payables | 82,351 | 25,984 | |||
Advertising expenses in excess of deduction limit | 7,507 | 312 | |||
Net operating tax loss carry forwards | 360,975 | 176,439 | |||
Others | 1,199 | 909 | |||
Total deferred tax assets | 547,838 | 293,955 | |||
Less: valuation allowance | ¥ (537,359) | ¥ (157,264) | ¥ (157,264) | (537,359) | (293,955) |
Net deferred tax assets | ¥ 10,479 | ¥ 0 | |||
Movement of the aggregate valuation allowances for deferred tax assets | |||||
Balance at January 1 | (293,955) | (157,264) | (183,091) | ||
Re-measurement due to applicable preferential tax rate for HNTE | 0 | 22,502 | 23,074 | ||
Addition | (248,896) | (159,690) | (962) | ||
Expiration of loss carry forward and impact of disposal of subsidiaries | 5,492 | 497 | 3,715 | ||
Balance at December 31 | ¥ (537,359) | ¥ (293,955) | ¥ (157,264) |
Taxation - Withholding income t
Taxation - Withholding income tax on dividends (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Withholding income tax | |
Withholding tax rate on dividend distributed by foreign investment entities (as a percent) | 10.00% |
Withholding tax rate on dividends paid by a FIE to its immediate holding company in Hong Kong (as a percent) | 5.00% |
Minimum percentage of ownership interests held by foreign investors for lower withholding tax rate (as a percent) | 25.00% |
Taxes Payable (Details)
Taxes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Taxes Payable | |||
Withholding individual income taxes for employees | ¥ 12,941 | ¥ 7,844 | |
VAT payable | 16,519 | 13,920 | |
EIT payable | 20,599 | 6,913 | |
Withholding income tax payable | 12,302 | 5,510 | |
Others | 5,495 | 4,318 | |
Taxes Payable, Current, Total | ¥ 67,856 | $ 9,747 | ¥ 38,505 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Accrued Liabilities and Other Payables | |||
Accrued marketing expenses | ¥ 229,457 | ¥ 71,217 | |
Leasing liabilities - current portion | 95,901 | ||
Consideration payable for acquisitions and investments | 79,059 | 502,279 | |
Advances to/payables from third parties | 76,893 | 21,966 | |
Payables to producers and licensors | 25,898 | 9,357 | |
Professional fees | 22,562 | 13,492 | |
Other staff related cost | 13,791 | 18,685 | |
Interest payable | 11,990 | ||
Others | 20,212 | 33,446 | |
Total | ¥ 575,763 | $ 82,702 | ¥ 670,442 |
Deferred Revenue (Details)
Deferred Revenue (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Revenue | ||
Deferred revenue, revenue recognized | ¥ 943.4 | ¥ 571.4 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - 2026 Notes [Member] $ / shares in Units, ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2019USD ($) | Apr. 30, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Apr. 30, 2019CNY (¥) | Apr. 01, 2019$ / shares | |
Debt Instrument [Line Items] | ||||||
Long term debt principal amount | $ 500 | ¥ 3,488.1 | ||||
Long term debt interest rate | 1.375% | 1.375% | ||||
Proceeds from Issuance of Long-term Debt, Net of Issuance Cost | $ 488.2 | ¥ 3,356.1 | ||||
Long term debt issuance cost | $ 11.8 | ¥ 81.1 | ||||
Debt Instrument Repurchase Face Amount Percentage | 100.00% | 100.00% | ||||
Interest Expense debt | $ 6.4 | 44.9 | ||||
Unamortized debt issuance costs | ¥ | ¥ 73.5 | |||||
American Depository Shares [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible debt, conversion rate | 0.0404040 | 0.0404040 | ||||
Convertible debt, conversion price | $ / shares | $ 24.75 |
Ordinary Shares (Details)
Ordinary Shares (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2019USD ($)$ / sharesshares | Apr. 30, 2019CNY (¥)shares | Oct. 31, 2018USD ($)shares | Oct. 31, 2018CNY (¥)shares | Apr. 30, 2018USD ($)$ / sharesshares | Apr. 30, 2018CNY (¥)shares | Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |
Class Y Ordinary Shares | ||||||||
Ordinary shares | ||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Number of shares redesignated to ordinary shares, group one | 60,027,926 | 60,027,926 | ||||||
Number of shares redesignated to ordinary shares, group two | 13,600,000 | 13,600,000 | ||||||
Number of shares redesignated to ordinary shares, group three | 8,500,000 | 8,500,000 | ||||||
Number of shares redesignated to ordinary shares, group four | 2,132,353 | 2,132,353 | ||||||
Number of shares redesignated to ordinary shares, group six | 1,104,535 | 1,104,535 | ||||||
Class Z Ordinary Shares | ||||||||
Ordinary shares | ||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, issued (in shares) | 25,063,451 | 25,063,451 | 42,000,000 | 42,000,000 | ||||
Net proceeds from the offering, after deducting commissions and offerings expenses | $ 443.3 | ¥ 2,781.8 | ||||||
Number of shares redesignated to ordinary shares, group five | 9,309,000 | 9,309,000 | ||||||
Number of shares redesignated to ordinary shares, group seven | 7,078,502 | 7,078,502 | ||||||
Number of shares redesignated to ordinary shares, group eight | 14,643,281 | 14,643,281 | ||||||
Number of shares redesignated to ordinary shares, group nine | 22,794,876 | 22,794,876 | ||||||
Number of shares redesignated to ordinary shares, group ten | 27,996,184 | 27,996,184 | ||||||
Number of shares redesignated to ordinary shares, group eleven | 41,480,769 | 41,480,769 | ||||||
Number of shares redesignated to ordinary shares, group twelve | 954,605 | 954,605 | ||||||
Number of shares redesignated to ordinary shares, group thirteen | 13,101,189 | 13,101,189 | ||||||
Number of shares redesignated to ordinary shares, group fourteen | 13,759,564 | 13,759,564 | ||||||
Pre-IPO Series A Preferred Shares | ||||||||
Ordinary shares | ||||||||
Number of shares redesignated to ordinary shares, group seven | 7,078,502 | 7,078,502 | ||||||
Pre-IPO Class A Ordinary Shares | ||||||||
Ordinary shares | ||||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group one | 60,027,926 | 60,027,926 | ||||||
Number of shares redesignated to ordinary shares, group five | 9,309,000 | 9,309,000 | ||||||
Pre-IPO Class B Ordinary Shares | ||||||||
Ordinary shares | ||||||||
Stock conversion ratio, into Class A ordinary shares | 1 | |||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group two | 13,600,000 | 13,600,000 | ||||||
Pre-IPO Class C Ordinary Shares | ||||||||
Ordinary shares | ||||||||
Stock conversion ratio, into Class A ordinary shares | 1 | |||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group three | 8,500,000 | 8,500,000 | ||||||
Pre-IPO Class D Ordinary Shares | ||||||||
Ordinary shares | ||||||||
Stock conversion ratio, into Class A ordinary shares | 1 | |||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group four | 2,132,353 | 2,132,353 | ||||||
Pre-IPO Series A+ Preferred Shares | ||||||||
Ordinary shares | ||||||||
Number of shares redesignated to ordinary shares, group eight | 14,643,281 | 14,643,281 | ||||||
Pre-IPO Series B Preferred Shares | ||||||||
Ordinary shares | ||||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group nine | 22,794,876 | 22,794,876 | ||||||
Pre-IPO Series C Preferred Shares | ||||||||
Ordinary shares | ||||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group ten | 27,996,184 | 27,996,184 | ||||||
Pre-IPO Series C1 Preferred Shares | ||||||||
Ordinary shares | ||||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group six | 1,104,535 | 1,104,535 | ||||||
Number of shares redesignated to ordinary shares, group eleven | 41,480,769 | 41,480,769 | ||||||
Pre-IPO Series C2 Preferred Shares | ||||||||
Ordinary shares | ||||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group twelve | 954,605 | 954,605 | ||||||
Pre-IPO Series D1 Preferred Shares | ||||||||
Ordinary shares | ||||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group thirteen | 13,101,189 | 13,101,189 | ||||||
Pre-IPO Series D2 Preferred Shares | ||||||||
Ordinary shares | ||||||||
Redesignation conversion ratio | 1 | 1 | ||||||
Number of shares redesignated to ordinary shares, group fourteen | 13,759,564 | 13,759,564 | ||||||
American Depository Shares Class Z Common Stock [Member] | ||||||||
Ordinary shares | ||||||||
Ordinary shares, issued (in shares) | 14,173,813 | 14,173,813 | 25,063,451 | 25,063,451 | 42,000,000 | 42,000,000 | ||
Price per share | $ / shares | $ 18 | $ 11.50 | ||||||
Net proceeds from the offering, after deducting commissions and offerings expenses | $ 317.2 | ¥ 2,170.8 | $ 443.3 | ¥ 2,781.8 | ||||
Redesignation conversion ratio | 1 | 1 | ||||||
Proceeds from common stock and notes issued net of issuance cost | $ 245.7 | ¥ 1,647.7 |
Pre-IPO Preferred Shares - Pre-
Pre-IPO Preferred Shares - Pre-IPO Preferred Shares activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Preferred shares | ||
Balance at beginning of the year (in shares) | 142,913,505 | 127,353,941 |
Balance at beginning of the year | ¥ 4,015,043 | ¥ 2,861,613 |
Issuance of Pre-IPO Preferred Shares | ¥ 738,155 | |
Issuance of Pre-IPO Preferred Shares (in shares) | 14,914,207 | |
Redesignation of Pre-IPO Series C Preferred Shares to Pre-IPO Series D1 Preferred Shares | ¥ 129,244 | |
Share based compensation in connection with redesignation of Pre-IPO Ordinary Shares to Pre-IPO Preferred Shares | 10,474 | |
Redesignation of Pre-IPO Ordinary Shares to Pre-IPO Series D1 Preferred Shares | ¥ 17,003 | |
Redesignation of Pre-IPO Class A ordinary shares to Pre-IPO Series D1 convertible redeemable preferred shares (in shares) | 645,357 | |
Accretion to Pre-IPO Preferred Shares redemption value | 64,605 | ¥ 258,554 |
Redesignation of Pre-IPO Preferred Shares into Class Y Ordinary Shares | ¥ (38,007) | |
Redesignation of Pre-IPO Preferred Shares into Class Y Ordinary Shares (in shares) | (1,104,535) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (4,041,641) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (141,808,970) | |
Balance at end of the year | ¥ 4,015,043 | |
Balance at end of the year (in shares) | 142,913,505 | |
Reclasification of Pre IPO Series C Preferred Shares [Member] | ||
Preferred shares | ||
Deemed Dividend | ¥ 129,200 | |
Pre-IPO Series A Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 7,078,502 | 7,078,502 |
Balance at beginning of the year | ¥ 16,625 | ¥ 15,640 |
Accretion to Pre-IPO Preferred Shares redemption value | 242 | 985 |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (16,867) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (7,078,502) | |
Balance at end of the year | ¥ 16,625 | |
Balance at end of the year (in shares) | 0 | 7,078,502 |
Pre-IPO Series A+ Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 14,643,281 | 14,643,281 |
Balance at beginning of the year | ¥ 85,681 | ¥ 79,349 |
Accretion to Pre-IPO Preferred Shares redemption value | 1,448 | 6,332 |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (87,129) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (14,643,281) | |
Balance at end of the year | ¥ 85,681 | |
Balance at end of the year (in shares) | 0 | 14,643,281 |
Pre-IPO Series B Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 22,794,876 | 22,794,876 |
Balance at beginning of the year | ¥ 325,559 | ¥ 302,257 |
Accretion to Pre-IPO Preferred Shares redemption value | 5,328 | 23,302 |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (330,887) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (22,794,876) | |
Balance at end of the year | ¥ 325,559 | |
Balance at end of the year (in shares) | 0 | 22,794,876 |
Pre-IPO Series C Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 27,996,184 | 39,297,373 |
Balance at beginning of the year | ¥ 797,355 | ¥ 1,085,154 |
Redesignation of Pre-IPO Series C Preferred Shares to Pre-IPO Series D1 Preferred Shares | ¥ (351,928) | |
Redesignated shares sold to new investors (in shares) | (11,301,189) | |
Accretion to Pre-IPO Preferred Shares redemption value | 13,633 | ¥ 64,129 |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (810,988) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (27,996,184) | |
Balance at end of the year | ¥ 797,355 | |
Balance at end of the year (in shares) | 0 | 27,996,184 |
Pre-IPO Series C1 Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 42,585,304 | 42,585,304 |
Balance at beginning of the year | ¥ 1,442,351 | ¥ 1,344,896 |
Accretion to Pre-IPO Preferred Shares redemption value | 23,024 | 97,455 |
Redesignation of Pre-IPO Preferred Shares into Class Y Ordinary Shares | ¥ (38,007) | |
Redesignation of Pre-IPO Preferred Shares into Class Y Ordinary Shares (in shares) | (1,104,535) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (1,427,368) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (41,480,769) | |
Balance at end of the year | ¥ 1,442,351 | |
Balance at end of the year (in shares) | 0 | 42,585,304 |
Pre-IPO Series C2 Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 954,605 | 954,605 |
Balance at beginning of the year | ¥ 36,763 | ¥ 34,317 |
Accretion to Pre-IPO Preferred Shares redemption value | 578 | 2,446 |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (37,341) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (954,605) | |
Balance at end of the year | ¥ 36,763 | |
Balance at end of the year (in shares) | 0 | 954,605 |
Pre-IPO Series D1 Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 13,101,189 | |
Balance at beginning of the year | ¥ 586,385 | |
Issuance of Pre-IPO Preferred Shares | ¥ 49,086 | |
Issuance of Pre-IPO Preferred Shares (in shares) | 1,154,643 | |
Redesignation of Pre-IPO Series C Preferred Shares to Pre-IPO Series D1 Preferred Shares | ¥ 481,172 | |
Redesignated shares sold to new investors (in shares) | 11,301,189 | |
Share based compensation in connection with redesignation of Pre-IPO Ordinary Shares to Pre-IPO Preferred Shares | ¥ 10,474 | |
Redesignation of Pre-IPO Ordinary Shares to Pre-IPO Series D1 Preferred Shares | ¥ 17,003 | |
Redesignation of Pre-IPO Class A ordinary shares to Pre-IPO Series D1 convertible redeemable preferred shares (in shares) | 645,357 | |
Accretion to Pre-IPO Preferred Shares redemption value | 9,124 | ¥ 28,650 |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (595,509) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (13,101,189) | |
Balance at end of the year | ¥ 586,385 | |
Balance at end of the year (in shares) | 0 | 13,101,189 |
Pre-IPO Series D2 Preferred Shares | ||
Preferred shares | ||
Balance at beginning of the year (in shares) | 13,759,564 | |
Balance at beginning of the year | ¥ 724,324 | |
Issuance of Pre-IPO Preferred Shares | ¥ 689,069 | |
Issuance of Pre-IPO Preferred Shares (in shares) | 13,759,564 | |
Accretion to Pre-IPO Preferred Shares redemption value | 11,228 | ¥ 35,255 |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares | ¥ (735,552) | |
Redesignation of Pre-IPO Preferred Shares into Class Z Ordinary Shares (in shares) | (13,759,564) | |
Balance at end of the year | ¥ 724,324 | |
Balance at end of the year (in shares) | 0 | 13,759,564 |
Employee Benefits (Details)
Employee Benefits (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits | |||
Contributions to medical and pension schemes | ¥ 215,553 | ¥ 158,113 | ¥ 91,302 |
Other employee benefits | 24,180 | 23,958 | 14,595 |
Total | ¥ 239,733 | ¥ 182,071 | ¥ 105,897 |
Share-based Compensation - Desc
Share-based Compensation - Description of share option plans (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2018 | Jul. 31, 2014 | |
Description of stock option plan | |||
Expiration period | 6 years | ||
Total unrecognized compensation expenses related to unvested awards | ¥ 472 | ||
Weighted average remaining vesting period | 3 years | ||
Minimum | |||
Description of stock option plan | |||
Vesting Period | 2 years | ||
Maximum | |||
Description of stock option plan | |||
Vesting Period | 4 years | ||
Class Z Ordinary Shares | 2014 Plan | Maximum | |||
Description of stock option plan | |||
Aggregate number of shares issuable under the plan | 19,880,315 | ||
Class Z Ordinary Shares | 2018 Plan | Maximum | |||
Description of stock option plan | |||
Aggregate number of shares issuable under the plan | 6,962,069 |
Share-based Compensation - Valu
Share-based Compensation - Valuation assumptions (Details) - Share options | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation assumptions | |||
Expected volatility, minimum | 49.60% | 47.80% | 42.50% |
Expected volatility, maximum | 52.10% | 48.40% | 45.80% |
Weighted average volatility | 50.80% | 48.30% | 43.30% |
Expected dividends | |||
Risk-free rate, minimum | 1.40% | 2.60% | 1.50% |
Risk-free rate, maximum | 2.40% | 2.80% | 2.30% |
Contractual term (in years) | 6 years | 6 years | 6 years |
Share-based Compensation - Shar
Share-based Compensation - Share options activities (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2019$ / shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | |
Share options activities | ||||||||
Beginning balance (in shares) | 12,314,000 | 19,419,000 | 11,572,000 | |||||
Granted (in shares) | 3,194,000 | 3,207,000 | 9,234,000 | |||||
Exercised (in shares) | (2,255,000) | (8,142,000) | ||||||
Forfeited (in shares) | (1,079,000) | (2,170,000) | (1,387,000) | |||||
Ending balance (in shares) | 12,174,000 | 12,314,000 | 19,419,000 | 11,572,000 | ||||
Exercisable (in shares) | 1,100,000 | |||||||
Weighted Average Exercise Price | ||||||||
Beginning balance (in USD/shares) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Granted (in USD/shares) | $ / shares | 0.0001 | 0.0001 | 0.0001 | |||||
Exercised (in USD/shares) | $ / shares | 0.0001 | 0.0001 | 0.0001 | |||||
Forfeited (in USD/shares) | $ / shares | 0.0001 | 0.0001 | 0.0001 | |||||
Ending balance (in USD/shares) | $ / shares | 0.0001 | 0.0001 | 0.0001 | |||||
Exercisable (in USD/shares) | $ / shares | 0.0001 | |||||||
Additional Disclosures | ||||||||
Weighted Average Remaining Contractual Life (In years) | 4 years 1 month 17 days | 4 years 5 months 15 days | 4 years 9 months 18 days | 5 years 7 days | ||||
Weighted Average Remaining Contractual Life, Exercisable (In years) | 2 years 7 months 2 days | |||||||
Aggregate Intrinsic Value, Beginning balance | ¥ | ¥ 1,233,028 | ¥ 880,197 | ¥ 224,620 | |||||
Aggregate Intrinsic Value, Ending balance | ¥ | ¥ 1,581,408 | ¥ 1,233,028 | ¥ 880,197 | ¥ 224,620 | ||||
Aggregate Intrinsic Value, Exercisable | ¥ | ¥ 142,892 | |||||||
Weighted average grant date fair value of options granted | (per share) | $ 15 | ¥ 104.4 | $ 11.7 | ¥ 76.2 | $ 5.3 | ¥ 35.1 | ||
Employees | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 7,641,000 | 8,124,000 | 4,992,000 | |||||
Granted (in shares) | 2,464,000 | 2,587,000 | 3,419,000 | |||||
Exercised (in shares) | (1,352,000) | (2,387,000) | ||||||
Forfeited (in shares) | (479,000) | (683,000) | (287,000) | |||||
Ending balance (in shares) | 8,274,000 | 7,641,000 | 8,124,000 | 4,992,000 | ||||
Exercisable (in shares) | 955,000 | |||||||
Senior Management | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 4,235,000 | 10,595,000 | 6,580,000 | |||||
Granted (in shares) | 730,000 | 620,000 | 5,115,000 | |||||
Exercised (in shares) | (710,000) | (5,543,000) | ||||||
Forfeited (in shares) | (600,000) | (1,437,000) | (1,100,000) | |||||
Ending balance (in shares) | 3,655,000 | 4,235,000 | 10,595,000 | 6,580,000 | ||||
Consultants | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 438,000 | 700,000 | ||||||
Granted (in shares) | 700,000 | |||||||
Exercised (in shares) | (193,000) | (212,000) | ||||||
Forfeited (in shares) | (50,000) | |||||||
Ending balance (in shares) | 245,000 | 438,000 | 700,000 | |||||
Exercisable (in shares) | 145,000 | |||||||
Class Z Ordinary Shares | ||||||||
Additional Disclosures | ||||||||
Aggregate number of Ordinary Shares available for future grant under the 2014 Plan and the 2018 Plan | 4,271,875 | |||||||
Pre-IPO Class A Ordinary Shares and Pre-IPO Series C1 Preferred Shares and Pre-IPO Series D1 Preferred Shares [Member] | ||||||||
Additional Disclosures | ||||||||
Share-based compensation expenses | ¥ | ¥ 36,100 |
Net Loss per Share (Details)
Net Loss per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | |||||
Net loss | ¥ (1,303,570) | $ (187,245) | ¥ (565,021) | ¥ (183,750) | |
Accretion to Pre-IPO Preferred Shares redemption value | ¥ | (64,605) | (258,554) | |||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | ¥ | (129,244) | ||||
Net loss attributable to noncontrolling interests | 14,597 | 2,097 | 13,301 | ||
Net loss attributable to the Bilibili Inc.'s shareholders | ¥ (1,288,973) | $ (185,148) | ¥ (616,325) | ¥ (571,548) | |
Denominator: | |||||
Weighted average number of ordinary shares outstanding, basic | 323,161,680 | 323,161,680 | 233,047,703 | 69,938,570 | |
Weighted average number of ordinary shares outstanding, diluted | 323,161,680 | 323,161,680 | 233,047,703 | 69,938,570 | |
Net loss per share, basic | (per share) | ¥ (3.99) | $ (0.57) | ¥ (2.64) | ¥ (8.17) | |
Net loss per share, diluted | (per share) | ¥ (3.99) | $ (0.57) | ¥ (2.64) | ¥ (8.17) | |
Class Y Ordinary Shares | |||||
Net Loss Per Share | |||||
Conversion of shares upon completion of IPO | 25,336,888 | ||||
Class Z Ordinary Shares | |||||
Net Loss Per Share | |||||
Conversion of shares upon completion of IPO | 141,808,970 | ||||
Share options | |||||
Net Loss Per Share | |||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 9,328,721 | 9,328,721 | 15,594,490 | 20,419,209 | |
Pre-IPO Preferred Shares | |||||
Net Loss Per Share | |||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 142,913,505 | ||||
Other permanent equities | |||||
Net Loss Per Share | |||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 24,232,353 | ||||
Ordinary shares | |||||
Net Loss Per Share | |||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 20,202,000 | 20,202,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - 12 months ended Dec. 31, 2019 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum purchase commitments | ¥ 800 | $ 114.9 |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | ||
Related Party Transactions | ||||||
Purchases of goods and services | ¥ 87,597 | ¥ 162,992 | ¥ 3,741 | |||
Transfer of long-term investment | [1] | 539,646 | 3,250 | ¥ 12,750 | ||
Due from related parties | 195,290 | $ 28,052 | ||||
Due to related parties | 0 | 50,331 | ||||
Limited Partner [Member] | ||||||
Related Party Transactions | ||||||
cash contribution to fund | 539,600 | |||||
Subsidiaries [Member] | ||||||
Related Party Transactions | ||||||
Due from investment funds | 170,535 | |||||
Due from related parties | 24,755 | |||||
Cost of equity method investements | ¥ 220,000 | |||||
Consideration on sale of equity method investments | ¥ 465,800 | |||||
Receivables for sale of equity method investments | 143,700 | |||||
Subsidiaries [Member] | Chaodian [Member] | ||||||
Related Party Transactions | ||||||
Due to related parties | ¥ 0 | ¥ 50,331 | ||||
[1] | In June 2019, to focus the Company’s efforts and resources on its core businesses, the Company transferred several equity investments of the Group to an investment fund. The Group contributed a total of RMB220.0 million cash into this fund as a limited partner, which is accounted for as an equity method investment. The cost of the equity investments transferred was RMB465.8 million. The consideration was RMB539.6 million, which was based on the estimated fair value of the investments. The difference between the consideration and cost of the investments was recognized as investment income. As of December 31, 2019, the consideration receivable was RMB143.7 million. The transactions in 2017 and 2018 referred to the investments transferred to an entity controlled by the Group’s major shareholders. |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Information | |
Number of operating segments | 1 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) ¥ in Billions | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Restricted Net Assets | |
Portion of after-tax profit to be allocated to general reserve fund and the statutory surplus fund under PRC law (as a percent) | 10.00% |
Amount of net assets of the Company's PRC subsidiaries and VIEs, not available for distribution | ¥ 1.8 |
Percentage of net assets of the Company's PRC subsidiaries and VIEs, not available for distribution | 24.10% |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Sep. 30, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Acquisitions | ||||||||
Revaluation gain of previously held equity interests | ¥ 144,434,000 | |||||||
Allocation of the consideration | ||||||||
Goodwill | ¥ 1,012,026,000 | ¥ 1,012,026,000 | 941,488,000 | $ 145,368 | ¥ 50,967,000 | |||
Purchase price allocation | ||||||||
Goodwill | ¥ 1,012,026,000 | ¥ 1,012,026,000 | 941,488,000 | $ 145,368 | ¥ 50,967,000 | |||
Zenith Group | ||||||||
Acquisitions | ||||||||
Percentage of equity interest acquired | 28.10% | 28.10% | 28.10% | |||||
Consideration transferred | ¥ 156,500,000 | $ 22,400 | ||||||
Long term investment alternative method | ¥ 296,800,000 | |||||||
Allocation of the consideration | ||||||||
Goodwill | 360,039,000 | ¥ 360,039,000 | ||||||
Purchase price allocation | ||||||||
Net (liabilities) assumed/assets acquired | 30,252,000 | 30,252,000 | ||||||
Noncontrolling interests | (121,154,000) | (121,154,000) | ||||||
Goodwill | 360,039,000 | 360,039,000 | ||||||
Total | 326,341,000 | 326,341,000 | ||||||
Total purchase price comprised of: | ||||||||
Cash consideration | 296,796,000 | |||||||
Fair value of previously held equity interests | 29,545,000 | |||||||
Total | 326,341,000 | |||||||
Zenith Group | Tradename | ||||||||
Purchase price allocation | ||||||||
Intangible assets | 54,974,000 | 54,974,000 | ||||||
Amortization Period (in years) | 8 years | |||||||
Zenith Group | Non-compete clause | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 2,230,000 | ¥ 2,230,000 | ||||||
Amortization Period (in years) | 3 years | |||||||
Chaodian | ||||||||
Acquisitions | ||||||||
Percentage of equity interest acquired | 72.00% | 63.60% | 63.60% | 63.60% | ||||
Consideration transferred | ¥ 288,600,000 | |||||||
Carrying value of acquired assets and liabilities | ¥ 909,600,000 | ¥ 986,400,000 | ¥ 986,400,000 | |||||
Allocation of the consideration | ||||||||
Consideration | 1,198,198,000 | 1,198,198,000 | ||||||
Cash and cash equivalents | 1,199,117,000 | 1,199,117,000 | ||||||
Accounts receivable, net | 95,147,000 | 95,147,000 | ||||||
Goodwill | 36,120,000 | 36,120,000 | ||||||
Other asset acquired | 68,214,000 | 68,214,000 | ||||||
Total Asset acquired | 1,398,598,000 | 1,398,598,000 | ||||||
Accrued liabilities and other payables | (323,025,000) | (323,025,000) | ||||||
Other liability acquired | (89,217,000) | (89,217,000) | ||||||
Total liability acquired | (412,242,000) | (412,242,000) | ||||||
Non-controlling interest | (276,621,000) | (276,621,000) | ||||||
Deemed dividend | 488,463,000 | 488,463,000 | ||||||
Total | 1,198,198,000 | 1,198,198,000 | ||||||
Purchase price allocation | ||||||||
Goodwill | 36,120,000 | 36,120,000 | ||||||
Other acquisitions | ||||||||
Acquisitions | ||||||||
Revaluation gain of previously held equity interests | 0 | 138,600,000 | ||||||
Allocation of the consideration | ||||||||
Goodwill | 34,418,000 | 34,418,000 | 530,482,000 | |||||
Purchase price allocation | ||||||||
Net (liabilities) assumed/assets acquired | 65,582,000 | 65,582,000 | 62,800,000 | |||||
Noncontrolling interests | (30,000,000) | (30,000,000) | (107,505,000) | |||||
Goodwill | 34,418,000 | 34,418,000 | 530,482,000 | |||||
Total | ¥ 70,000,000 | 70,000,000 | 643,777,000 | |||||
Total purchase price comprised of: | ||||||||
Cash consideration | 70,000,000 | 391,071,000 | ||||||
Fair value of previously held equity interests | 252,706,000 | |||||||
Total | ¥ 70,000,000 | 643,777,000 | ||||||
Other acquisitions | Tradename | ||||||||
Purchase price allocation | ||||||||
Intangible assets | 104,000,000 | |||||||
Other acquisitions | Tradename | Minimum | ||||||||
Purchase price allocation | ||||||||
Amortization Period (in years) | 5 years | |||||||
Other acquisitions | Tradename | Maximum | ||||||||
Purchase price allocation | ||||||||
Amortization Period (in years) | 10 years | |||||||
Other acquisitions | User base | ||||||||
Purchase price allocation | ||||||||
Intangible assets | 21,500,000 | |||||||
Amortization Period (in years) | 3 years | |||||||
Other acquisitions | Copyrights | ||||||||
Purchase price allocation | ||||||||
Intangible assets | 23,500,000 | |||||||
Other acquisitions | Copyrights | Minimum | ||||||||
Purchase price allocation | ||||||||
Amortization Period (in years) | 9 months | |||||||
Other acquisitions | Copyrights | Maximum | ||||||||
Purchase price allocation | ||||||||
Amortization Period (in years) | 3 years | |||||||
Other acquisitions | Technology | ||||||||
Purchase price allocation | ||||||||
Intangible assets | 9,000,000 | |||||||
Other acquisitions | Technology | Minimum | ||||||||
Purchase price allocation | ||||||||
Amortization Period (in years) | 6 months | |||||||
Other acquisitions | Technology | Maximum | ||||||||
Purchase price allocation | ||||||||
Amortization Period (in years) | 8 months | |||||||
Investment Income (Expense) [Member] | Zenith Group | ||||||||
Acquisitions | ||||||||
Revaluation gain of previously held equity interests | ¥ 5,800,000 | |||||||
Before Second Acquisition [Member] | Zenith Group | ||||||||
Acquisitions | ||||||||
Percentage of equity interest owned after transactions | 7.40% | |||||||
After Second Acquisition [Member] | Zenith Group | ||||||||
Acquisitions | ||||||||
Percentage of equity interest owned after transactions | 71.90% |