Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Entity Registrant Name | Bilibili Inc. |
Entity Central Index Key | 0001723690 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2022 |
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 | 2022 |
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 |
Common Stock, Capital Shares Reserved for Future Issuance | 5,337,832 |
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 |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 1424 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Beijing, the People’s Republic of China |
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 | 394,579,585 |
Class Z Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 310,864,471 |
Title of 12(b) Security | Class Z ordinary shares, par value US$0.0001 per share |
No Trading Symbol Flag | true |
Class Y Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 83,715,114 |
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, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | ||
Current assets: | |||||
Cash and cash equivalents | ¥ 10,172,584 | $ 1,474,886 | ¥ 7,523,108 | ||
Time deposits | 4,767,972 | 691,291 | 7,632,334 | ||
Restricted cash | 14,803 | 2,146 | |||
Accounts receivable, net | 1,328,584 | 192,627 | 1,382,328 | ||
Amount due from related parties | 1,594,920 | 231,242 | 2,041,316 | ||
Prepayments and other current assets | 1,950,573 | 282,806 | 2,807,048 | ||
Short-term investments | 4,623,452 | 670,338 | 15,060,722 | ||
Total current assets | 24,452,888 | 3,545,336 | 36,446,856 | ||
Non-current assets: | |||||
Property and equipment, net | 1,227,163 | 177,922 | 1,350,256 | ||
Production cost, net | 1,929,622 | 279,769 | 1,083,772 | ||
Intangible assets, net | 4,326,790 | 627,326 | 3,835,600 | ||
Deferred tax assets | 43,591 | 6,320 | 36,355 | ||
Goodwill | 2,725,130 | 395,107 | 2,338,303 | ||
Long-term investments, net | 5,651,018 | 819,321 | 5,502,524 | ||
Other long-term assets | 1,474,368 | 213,762 | 1,459,485 | ||
Total non-current assets | 17,377,682 | 2,519,527 | 15,606,295 | ||
Total assets | 41,830,570 | 6,064,863 | 52,053,151 | ||
Current liabilities: | |||||
Accounts payable | 4,291,656 | 622,232 | 4,360,906 | ||
Salary and welfare payable | 1,401,526 | 203,202 | 995,451 | ||
Taxes payable | 316,244 | 45,851 | 203,770 | ||
Short-term loan and current portion of long-term debt | 6,621,386 | 960,011 | 1,232,106 | ||
Deferred revenue | 2,819,323 | 408,763 | 2,645,389 | ||
Accrued liabilities and other payables | 1,534,962 | 222,548 | 2,416,955 | ||
Amount due to related parties | 108,307 | [1] | 15,703 | 216,434 | [1] |
Total current liabilities | 17,093,404 | 2,478,310 | 12,071,011 | ||
Non-current liabilities: | |||||
Long-term debt | 8,683,150 | 1,258,938 | 17,784,092 | ||
Other long-term liabilities | 814,429 | 118,082 | 481,982 | ||
Total non-current liabilities | 9,497,579 | 1,377,020 | 18,266,074 | ||
Total liabilities | 26,590,983 | 3,855,330 | 30,337,085 | ||
Commitments and contingencies (Note 19) | |||||
Shareholders' equity | |||||
Additional paid-in capital | 36,623,161 | 5,309,859 | 35,929,961 | ||
Statutory reserves | 36,173 | 5,245 | 24,621 | ||
Accumulated other comprehensive (loss)/income | 58,110 | 8,425 | (279,862) | ||
Accumulated deficit | (21,479,900) | (3,114,288) | (13,971,304) | ||
Total Bilibili Inc.'s shareholders' equity | 15,237,828 | 2,209,278 | 21,703,667 | ||
Noncontrolling interests | 1,759 | 255 | 12,399 | ||
Total shareholders' equity | 15,239,587 | 2,209,533 | 21,716,066 | ||
Total liabilities and shareholders' equity | 41,830,570 | 6,064,863 | 52,053,151 | ||
Class Y Ordinary Shares | |||||
Shareholders' equity | |||||
Ordinary shares | 52 | 8 | 52 | ||
Class Z Ordinary Shares | |||||
Shareholders' equity | |||||
Ordinary shares | ¥ 201 | $ 29 | ¥ 199 | ||
[1]The balances as of December 31, 2021 and 2022 mainly represent considerations related to long-term investments, which are non-trade in nature. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares |
Liabilities | ¥ 26,590,983 | $ 3,855,330 | ¥ 30,337,085 | |
Class Y Ordinary Shares | ||||
Ordinary shares | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Ordinary shares, issued | 83,715,114 | 83,715,114 | 83,715,114 | |
Ordinary shares, outstanding | 83,715,114 | 83,715,114 | 83,715,114 | |
Class Z Ordinary Shares | ||||
Ordinary shares | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Ordinary shares, authorized | 9,800,000,000 | 9,800,000,000 | 9,800,000,000 | |
Ordinary shares, issued | 316,202,303 | 316,202,303 | 309,656,738 | |
Ordinary shares, outstanding | 310,864,471 | 310,864,471 | 306,889,473 | |
Consolidated VIEs without recourse to the primary beneficiary | ||||
Liabilities | ¥ | ¥ 19,744,179 | ¥ 14,967,875 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Net revenues | ¥ 21,899,167 | $ 3,175,081 | ¥ 19,383,684 | ¥ 11,998,976 |
Cost of revenues | (18,049,872) | (2,616,986) | (15,340,537) | (9,158,800) |
Gross profit | 3,849,295 | 558,095 | 4,043,147 | 2,840,176 |
Operating expenses: | ||||
Sales and marketing expenses | (4,920,745) | (713,441) | (5,794,853) | (3,492,091) |
General and administrative expenses | (2,521,134) | (365,530) | (1,837,506) | (976,082) |
Research and development expenses | (4,765,360) | (690,912) | (2,839,862) | (1,512,966) |
Total operating expenses | (12,207,239) | (1,769,883) | (10,472,221) | (5,981,139) |
Loss from operations | (8,357,944) | (1,211,788) | (6,429,074) | (3,140,963) |
Other income/(expense): | ||||
Investment income/(loss), net (including impairments) | (532,485) | (77,203) | (194,183) | 28,203 |
Interest income | 281,051 | 40,749 | 70,367 | 83,301 |
Interest expense | (250,923) | (36,380) | (155,467) | (108,547) |
Exchange gains/(losses) | (19,745) | (2,863) | (15,504) | 41,717 |
Debt extinguishment gain | 1,318,594 | 191,178 | ||
Others, net | 157,944 | 22,900 | 10,411 | 95,641 |
Total other income/(expense), net | 954,436 | 138,381 | (284,376) | 140,315 |
Loss before income tax expenses | (7,403,508) | (1,073,407) | (6,713,450) | (3,000,648) |
Income tax | (104,145) | (15,100) | (95,289) | (53,369) |
Net loss | (7,507,653) | (1,088,507) | (6,808,739) | (3,054,017) |
Accretion to redeemable noncontrolling interests | ¥ | (4,292) | |||
Net loss attributable to noncontrolling interests | 10,640 | 1,542 | 19,511 | 46,605 |
Net loss attributable to the Bilibili Inc.'s shareholders | (7,497,013) | (1,086,965) | (6,789,228) | (3,011,704) |
Net loss | (7,507,653) | (1,088,507) | (6,808,739) | (3,054,017) |
Other comprehensive (loss)/income: | ||||
Foreign currency translation adjustments | 337,972 | 49,001 | (420,991) | (325,100) |
Total other comprehensive (loss)/income | 337,972 | 49,001 | (420,991) | (325,100) |
Total comprehensive loss | (7,169,681) | (1,039,506) | (7,229,730) | (3,379,117) |
Accretion to redeemable noncontrolling interests | ¥ | (4,292) | |||
Comprehensive loss attributable to noncontrolling interests | 10,640 | 1,542 | 19,511 | 46,605 |
Comprehensive loss attributable to the Bilibili Inc.'s shareholders | ¥ (7,159,041) | $ (1,037,964) | ¥ (7,210,219) | ¥ (3,336,804) |
Net loss per share/ADS, basic | (per share) | ¥ (18.99) | $ (2.75) | ¥ (17.87) | ¥ (8.71) |
Net loss per share/ADS, diluted | (per share) | ¥ (18.99) | $ (2.75) | ¥ (17.87) | ¥ (8.71) |
Cost of revenues | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 69,096 | $ 10,018 | ¥ 76,232 | ¥ 37,087 |
Sales and marketing expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 59,041 | 8,560 | 53,452 | 40,808 |
General and administrative expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 554,976 | 80,464 | 553,526 | 181,753 |
Research and development expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 357,570 | $ 51,843 | ¥ 316,607 | ¥ 126,250 |
ADSs | ||||
Other comprehensive (loss)/income: | ||||
Net loss per share/ADS, basic | (per share) | ¥ (18.99) | $ (2.75) | ¥ (17.87) | ¥ (8.71) |
Net loss per share/ADS, diluted | (per share) | ¥ (18.99) | $ (2.75) | ¥ (17.87) | ¥ (8.71) |
Weighted average number of ordinary shares/ADSs, basic | shares | 394,863,584 | 394,863,584 | 379,898,121 | 345,816,023 |
Weighted average number of ordinary shares/ADSs, diluted | shares | 394,863,584 | 394,863,584 | 379,898,121 | 345,816,023 |
Ordinary shares | ||||
Other comprehensive (loss)/income: | ||||
Weighted average number of ordinary shares/ADSs, basic | shares | 394,863,584 | 394,863,584 | 379,898,121 | 345,816,023 |
Weighted average number of ordinary shares/ADSs, diluted | shares | 394,863,584 | 394,863,584 | 379,898,121 | 345,816,023 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Secondary Public Offering OR HK IPO CNY (¥) | Ordinary shares Class Y Ordinary Shares CNY (¥) shares | Ordinary shares Class Z Ordinary Shares CNY (¥) shares | Ordinary shares Class Z Ordinary Shares Secondary Public Offering OR HK IPO CNY (¥) shares | Additional paid-in capital CNY (¥) | Additional paid-in capital Secondary Public Offering OR HK IPO CNY (¥) | Statutory reserves CNY (¥) | Accumulated other comprehensive income/(loss) CNY (¥) | Accumulated deficit CNY (¥) | Noncontrolling interests CNY (¥) |
Balance at the beginning of the year at Dec. 31, 2019 | ¥ 7,636,460 | ¥ 53 | ¥ 155 | ¥ 10,718,190 | ¥ 13,463 | ¥ 466,229 | ¥ (4,145,606) | ¥ 583,976 | ||||
Balance at the beginning of the year (Shares) at Dec. 31, 2019 | shares | 85,364,814 | 242,751,341 | ||||||||||
Net loss | (3,054,017) | (3,007,412) | (46,605) | |||||||||
Impact of adoption of credit loss guidance | (17,900) | (17,900) | ||||||||||
Share-based compensation | 385,898 | 385,898 | ||||||||||
Share issuance from exercise of share options | 3 | ¥ 3 | ||||||||||
Share issuance from exercise of share options (in shares) | shares | 4,491,566 | |||||||||||
Issuance ordinary shares related to long-term investments | 277,467 | 277,467 | ||||||||||
Share issuance from exercise of share options | 2,817,458 | ¥ 12 | 2,817,446 | |||||||||
Share issuance from exercise of share options (in shares) | shares | 17,310,696 | |||||||||||
Shares redesignation | ¥ (1) | ¥ 1 | ||||||||||
Shares redesignation (in shares) | shares | (1,649,700) | 1,649,700 | ||||||||||
Accretion to redeemable noncontrolling interests | (5,964) | (4,292) | (1,672) | |||||||||
Capital injection in subsidiaries by noncontrolling interests | 21,463 | 21,463 | ||||||||||
Acquisition of subsidiaries | 162,492 | 120,865 | 41,627 | |||||||||
Acquisition of subsidiaries (in shares) | shares | 270,435 | |||||||||||
Appropriation to statutory reserves | 4,421 | (4,421) | ||||||||||
Purchase of noncontrolling interests | (116,056) | ¥ 1 | 300,728 | (416,785) | ||||||||
Purchase of noncontrolling interests (in shares) | shares | 1,731,100 | |||||||||||
Foreign currency translation adjustments | (325,100) | (325,100) | ||||||||||
Balance at the end of the year at Dec. 31, 2020 | 7,782,204 | ¥ 52 | ¥ 172 | 14,616,302 | 17,884 | 141,129 | (7,175,339) | 182,004 | ||||
Balance at the end of the year (Shares) at Dec. 31, 2020 | shares | 83,715,114 | 268,204,838 | ||||||||||
Net loss | (6,808,739) | (6,789,228) | (19,511) | |||||||||
Share-based compensation | 999,817 | 999,817 | ||||||||||
Share issuance from exercise of share options | 3 | ¥ 3 | ||||||||||
Share issuance from exercise of share options (in shares) | shares | 3,262,562 | |||||||||||
Issuance ordinary shares related to long-term investments | ¥ 1 | (1) | ||||||||||
Issuance ordinary shares related to long-term investments (in shares) | shares | 1,045,700 | |||||||||||
Share issuance from exercise of share options | ¥ 19,266,810 | ¥ 18 | ¥ 19,266,792 | |||||||||
Share issuance from exercise of share options (in shares) | shares | 28,750,000 | |||||||||||
Share issuance upon the conversion of convertible senior notes | 449,911 | ¥ 3 | 449,908 | |||||||||
Share issuance upon the conversion of convertible senior notes (in shares) | shares | 2,854,277 | |||||||||||
Capital injection in subsidiaries by noncontrolling interests | 2,187 | 2,187 | ||||||||||
Acquisition of subsidiaries | 617,999 | ¥ 1 | 632,747 | (14,749) | ||||||||
Acquisition of subsidiaries (in shares) | shares | 2,056,825 | |||||||||||
Appropriation to statutory reserves | 6,737 | (6,737) | ||||||||||
Purchase of noncontrolling interests | (173,135) | ¥ 1 | (35,604) | (137,532) | ||||||||
Purchase of noncontrolling interests (in shares) | shares | 715,271 | |||||||||||
Foreign currency translation adjustments | (420,991) | (420,991) | ||||||||||
Balance at the end of the year at Dec. 31, 2021 | 21,716,066 | ¥ 52 | ¥ 199 | 35,929,961 | 24,621 | (279,862) | (13,971,304) | 12,399 | ||||
Balance at the end of the year (Shares) at Dec. 31, 2021 | shares | 83,715,114 | 306,889,473 | ||||||||||
Net loss | (7,507,653) | $ (1,088,507) | (7,497,013) | (10,640) | ||||||||
Share-based compensation | 1,040,683 | 1,040,683 | ||||||||||
Share issuance from exercise of share options | 4 | ¥ 4 | ||||||||||
Share issuance from exercise of share options (in shares) | shares | 3,929,433 | |||||||||||
Share issuance upon the conversion of convertible senior notes | 96 | 96 | ||||||||||
Share issuance upon the conversion of convertible senior notes (in shares) | shares | 565 | |||||||||||
Repurchase of shares | (347,581) | ¥ (2) | (347,579) | |||||||||
Repurchase of shares (in shares) | shares | (2,640,832) | |||||||||||
Appropriation to statutory reserves | 11,552 | (11,552) | ||||||||||
Purchase of noncontrolling interests (in shares) | shares | 45,000 | |||||||||||
Foreign currency translation adjustments | 337,972 | 49,001 | 337,972 | |||||||||
Balance at the end of the year at Dec. 31, 2022 | ¥ 15,239,587 | $ 2,209,533 | ¥ 52 | ¥ 201 | ¥ 36,623,161 | ¥ 36,173 | ¥ 58,110 | ¥ (21,479,869) | ¥ 1,759 | |||
Balance at the end of the year (Shares) at Dec. 31, 2022 | shares | 83,715,114 | 308,223,639 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 HKD ($) | Dec. 31, 2020 USD ($) | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance costs | $ 337,143 | $ 563 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (7,507,653) | $ (1,088,507) | ¥ (6,808,739) | ¥ (3,054,017) |
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities: | ||||
Depreciation of property and equipment | 755,500 | 109,530 | 538,601 | 326,512 |
Amortization of intangible assets | 2,581,300 | 374,257 | 1,903,226 | 1,395,129 |
Amortization of right-of-use assets | 229,295 | 33,245 | 161,873 | 96,235 |
Amortization of debt issuance costs | 48,167 | 6,984 | 25,234 | 19,291 |
Share-based compensation expenses | 1,040,683 | 150,885 | 999,817 | 385,898 |
Allowance for doubtful accounts | 130,549 | 18,928 | 189,165 | 99,165 |
Inventory provision | 191,088 | 27,705 | 24,454 | 6,218 |
Deferred income taxes | (36,495) | (5,291) | (21,492) | (13,466) |
Unrealized exchange (gains)/losses | 2,277 | 330 | (6,592) | (3,018) |
Unrealized fair value changes of investments | 251,383 | 36,447 | 200,274 | (50,641) |
Loss on disposal of property and equipment | 748 | 108 | 611 | |
Termination expenses of certain game projects | 525,762 | 76,228 | ||
Gain from disposal of subsidiaries and long-term investments | (178,378) | (25,862) | (4,413) | |
Loss from equity method investments | 211,600 | 30,682 | 37,179 | 50,531 |
Revaluation of previously held equity interests | (152,153) | (22,060) | 31,462 | |
Impairments of long-term investments | 465,600 | 67,512 | 91,493 | 8,000 |
Gain of convertible senior notes repurchase | (1,318,594) | (191,178) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (59,866) | (8,680) | (429,460) | (417,237) |
Amount due from related parties | (74,117) | (10,746) | 8,792 | 17,015 |
Prepayments and other assets | (556,214) | (80,644) | (1,747,744) | (610,592) |
Other long-term assets | (444,326) | (64,421) | (138,396) | (245,224) |
Accounts payable | 46,862 | 6,794 | 1,056,847 | 816,103 |
Salary and welfare payable | 396,113 | 57,431 | 254,213 | 374,442 |
Taxes payable | 130,684 | 18,947 | 77,365 | 54,381 |
Deferred revenue | 173,935 | 25,218 | 494,551 | 734,786 |
Accrued liabilities and other payables | (1,026,319) | (148,803) | 319,702 | 651,651 |
Amount due to related parties | (21,210) | (3,075) | ||
Other long-term liabilities | 282,367 | 40,939 | 94,969 | 111,941 |
Net cash provided by/(used in) operating activities | (3,911,400) | (567,097) | (2,647,008) | 753,103 |
Cash flows from investing activities: | ||||
Purchase of property and equipment | (760,427) | (110,252) | (965,410) | (602,122) |
Purchase of intangible assets | (1,977,897) | (286,768) | (2,721,799) | (1,636,877) |
Purchase of short-term investments | (70,578,711) | (10,232,951) | (71,748,847) | (26,731,176) |
Maturities of short-term investments | 81,698,532 | 11,845,174 | 60,524,888 | 24,921,538 |
Cash consideration paid for purchase of subsidiaries, net of cash acquired | (1,179,764) | (171,050) | (521,984) | (498,854) |
Cash paid for long-term investments including loans | (1,466,311) | (212,595) | (6,716,491) | (1,261,161) |
Repayment of loans from investees | 596,766 | 86,523 | 539,225 | 3,500 |
Cash received from disposal/return of long-term assets | 612,214 | 88,762 | 74,604 | 135,254 |
Placements of time deposits | (10,245,026) | (1,485,389) | (10,697,444) | (10,907,296) |
Maturities of time deposits | 13,909,967 | 2,016,756 | 7,655,147 | 7,670,373 |
Impact to cash resulting from deconsolidation of subsidiaries | (125) | (18) | ||
Net cash (used in)/provided by investing activities | 10,609,218 | 1,538,192 | (24,578,111) | (8,906,821) |
Cash flows from financing activities: | ||||
Proceeds of short-term loan | 1,701,532 | 246,699 | 1,332,597 | 200,000 |
Repayment of short-term loan | (1,450,627) | (210,321) | (214,882) | (100,000) |
Repurchase of noncontrolling interests | (56,741) | (8,227) | (104,696) | (280,271) |
Capital injections from noncontrolling interests | 2,187 | 103,450 | ||
Proceeds from exercise of employees' share options | 4 | 1 | 3 | 3 |
Proceeds from issuance of ordinary shares, net of issuance costs of US$563, HKD337,143 and nil, respectively | 19,288,423 | 2,817,458 | ||
Repurchase of convertible senior notes | (4,201,506) | (609,161) | ||
Repurchase of shares | (347,581) | (50,395) | ||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$13,857, US$23,402 and nil, respectively | 10,085,520 | 5,594,779 | ||
Net cash provided by/(used in) financing activities | (4,354,919) | (631,404) | 30,389,152 | 8,335,419 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | 321,350 | 46,593 | (319,034) | (466,252) |
Net (decrease)/increase in cash and cash equivalents and restricted cash | 2,664,279 | 386,284 | 2,844,999 | (284,551) |
Cash and cash equivalents and restricted cash at beginning of the year | 7,523,108 | 1,090,748 | 4,678,109 | 4,962,660 |
Cash and cash equivalents and restricted cash at end of the year | 10,187,387 | 1,477,032 | 7,523,108 | 4,678,109 |
Cash and cash equivalents and restricted cash at end of the year | 10,172,584 | 1,474,886 | 7,523,108 | 4,678,109 |
Restricted cash at end of the year | 14,803 | 2,146 | ||
Supplemental disclosures of cash flows information: | ||||
Cash paid for income taxes, net of tax refund | 80,591 | 11,685 | 73,717 | 54,022 |
Cash paid for interest expense | 200,172 | 29,022 | 116,226 | 86,167 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Accretion to redeemable noncontrolling interests | 5,964 | |||
Property and equipment purchases financed by accounts payable | 46,066 | 6,679 | 183,203 | 25,797 |
Acquisitions and investments financed by payables | 202,018 | 29,290 | 731,503 | 125,363 |
Intangible assets purchases financed by payables | 824,929 | 119,603 | 830,596 | 746,404 |
Issuance of ordinary shares in the business combination, purchase of noncontrolling interests and investment addition | 1,207,980 | ¥ 889,957 | ||
Issuance of ordinary shares in connection with debt conversion | ¥ 96 | $ 14 | ¥ 449,914 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 HKD ($) | Dec. 31, 2020 USD ($) | |
Proceeds from issuance of ordinary shares, net of issuance costs | $ 337,143 | $ 563 | ||
Proceeds from issuance of convertible senior notes, net of inssuance costs | ¥ 0 | $ 23,402 | 13,857 | |
Ordinary shares | ||||
Proceeds from issuance of ordinary shares, net of issuance costs | ¥ 0 | $ 337,143 | $ 563 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | 1. Operations Bilibili Inc. (the “Company” or “Bilibili”) is an iconic brand and a leading video community for young generations in China. Incorporated as a limited liability company in the Cayman Islands in December 2013, 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”). In April 2018, the Company completed its IPO on the Nasdaq Global Select Market. In March 2021, the Company successfully listed its Class Z ordinary shares on the main board of the Hong Kong Stock Exchange. The Company issued a total On October 3, 2022 (the “Primary Conversion Effective Date”), the Nasdaq As of December 31, 2022, the Company’s major subsidiaries, VIEs and subsidiaries of the VIEs are as follows: Major Subsidiaries Place and Year of Incorporation Percentage of Direct or Indirect Economic Ownership Principal Activities Bilibili HK Limited Hong Kong, 2014 100 Investment holding Hode HK Limited Hong Kong, 2014 100 Investment holding Chaodian HK Limited Hong Kong, 2019 100 Investment holding Bilibili Co., Ltd. Japan, 2014 100 Business development Hode Shanghai Limited (“Hode Shanghai”) PRC, 2014 100 Technology development Shanghai Bilibili Technology Co., Ltd. PRC, 2016 100 Technology development Chaodian (Shanghai) Technology Co., Ltd . PRC, 2019 100 E-commerce and advertising Major VIEs and VIEs’ subsidiaries Place and Year of Incorporation Acquisition Percentage of Direct or Indirect Economic Interest Principal Activities Shanghai Hode Information Technology Co., Ltd. (“Hode Information Technology”) PRC, 2013 100* Mobile game operation Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) PRC, 2014 100* Video distribution and game Sharejoy Network Technology Co., Ltd. (“Sharejoy PRC, 2014 100* Game distribution Shanghai Hehehe Culture Communication Co., Ltd. (“Shanghai PRC, 2014 100* Comics distribution Shanghai Anime Tamashi Cultural Media Co., Ltd. (“Shanghai Anime Tamashi”) PRC, 2015 100* E-commerce * Hode Shanghai is the primary beneficiary the major and VIEs’ subsidiaries 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 the 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 or exclusive business cooperation 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 Company consolidates the financial statements of these VIEs. Consequently, the financial results of the VIEs were included in the Group’s consolidated financial statements in accordance with the presentation as stated in Note 2(a). 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. Exclusive Option Agreements. Powers of Attorney attorney-in-fact Equity Pledge Agreements. 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. On March 15, 2019, the National People’s Congress approved the Foreign Investment Law, effective on January 1, 2020. The Foreign Investment Law has a catch-all The Company’s ability to control the VIEs also depends on the powers of attorney the founders have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes these powers of attorney are legally enforceable but may not be as effective as direct equity ownership. 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 operating 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 or block the Group’s app/websites; • 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 enterprises are in compliance with PRC law and are legally enforceable. The Group’s operations depend on the VIEs to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. Management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those arrangements. Conflicts of interest may arise between the roles of them as shareholders, directors or officers of Group and as shareholders of the VIEs. The following combined financial information of the Group’s VIEs as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 included in the accompanying consolidated financial statements of the Group was as follows: December 31, December 31, RMB in thousands Cash and cash equivalents 377,114 1,590,440 Time deposits 6,997 4,186 Accounts receivable, net 524,311 619,927 Amounts due from Group companies 391,951 507,849 Amount due from related parties 101,983 119,857 Prepayments and other current assets 1,806,185 883,903 Short-term investments 927,124 272,340 Long-term investments, net 1,745,466 1,852,740 Other non-current 4,926,989 5,852,315 Total assets 10,808,120 11,703,557 Accounts payable 3,164,301 3,452,192 Salary and welfare payables 343,008 343,786 Taxes payable 128,817 165,162 Short-term loan 400,000 400,000 Deferred revenue 2,192,460 2,138,539 Accrued liabilities and other payables 1,184,523 531,188 Amounts due to the Group companies 7,214,146 12,415,760 Amounts due to related parties 117,901 27,929 Other long-term liabilities 222,719 269,623 Total liabilities 14,967,875 19,744,179 Total Bilibili Inc’s shareholders’ deficit (4,170,459 ) (8,042,238 ) Noncontrolling interests 10,704 1,616 Total shareholders’ deficit (4,159,755 ) (8,040,622 ) Total liabilities and shareholders’ deficit 10,808,120 11,703,557 For the Year Ended December 31, 2020 2021 2022 RMB in thousands Third-party revenues 9,651,207 12,867,536 14,876,639 Inter-company revenues 667,765 1,574,896 1,198,107 Total revenues 10,318,972 14,442,432 16,074,746 Third-party costs and expenses (9,931,047 ) (16,283,295 ) (18,436,865 ) Inter-company consulting and services costs and expenses (1,021,596 ) (593,272 ) (726,875 ) Other inter-company costs and expenses (201,587 ) (271,096 ) (418,667 ) Total costs and expenses (11,154,230 ) (17,147,663 ) (19,582,407 ) Gain/(Loss) from non-operations 8,368 (163,146 ) (268,584 ) Loss before income tax expenses (826,890 ) (2,868,377 ) (3,776,245 ) Income tax (27,080 ) (38,997 ) (89,660 ) Net loss (853,970 ) (2,907,374 ) (3,865,905 ) Net loss attributable to noncontrolling interests 8,501 10,367 9,088 Net loss attributable to Bilibili Inc.’s shareholders (845,469 ) (2,897,007 ) (3,856,817 ) For the Year Ended December 31, 2020 2021 2022 RMB in thousands Consulting and services charges to Group companies (1,074,899 ) (637,787 ) (610,600 ) Other operating cashflow from Group companies 586,017 1,683,907 3,863,991 Operating cashflow from/(to) third-parties 1,965,376 (1,729,079 ) (2,339,697 ) Net cash provided by/ (used in) operating activities 1,476,494 (682,959 ) 913,694 Purchase of short-term (13,973,904 ) (12,610,305 ) (7,335,115 ) Maturities of short-term 13,498,485 12,954,425 7,970,552 Placements of time deposits (25,515 ) (39,318 ) (1,270 ) Maturities of time deposits 7,896 54,319 4,444 Other investing activities (1,928,125 ) (3,265,756 ) (2,188,712 ) Net cash used in investing activities (2,421,163 ) (2,906,635 ) (1,550,101 ) Investments and loans from Group companies 990,287 3,307,226 1,884,890 Other financing activities 100,000 300,000 — Net cash provided by financing activities 1,090,287 3,607,226 1,884,890 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 RMB494.1 million, as of December 31, 2021 and 2022, as well as certain non-distributable There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary. Liquidity The Group incurred net losses of RMB3,054.0 million, RMB6,808.7 million and RMB7,507.7million for the years ended December 31, 2020, 2021 and 2022, respectively. Net cash provided by operating activities was RMB753.1 million for the year ended December 31, 2020, and net cash used in operating activities was RMB2,647.0 million, RMB3,911.4 million for the years ended December 31, 2021 and 2022, respectively. Accumulated deficit was RMB13,971.3 million and RMB 21,479.9 million as of December 31, 2021 and 2022, respectively. The Group assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments. Historically, the Group has relied principally on both operational sources of cash and non-operational |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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. 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, and assessment for the impairment of long-term investments accounted for using the measurement alternative. d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The Company and several of its overseas subsidiaries use US$ or their respective local currencies as their functional currency. The functional currency of the Group’s PRC entities is RMB. 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 the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in exchange gains/(losses) on the consolidated statements of operations and comprehensive loss. e) Convenience Translation Translations of balances on the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB 6.8972 , representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 30, 2022. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, or at any other rate. 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. c. 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, restricted cash, time deposits, accounts receivable, amounts due from/to related parties, short-term investments, accounts payable, short-term loan, accrual liabilities and other payables of which the carrying values approximate their fair values. Please see Note 22 for additional information. g) Cash and cash equivalents, restricted cash and time deposits Cash and cash equivalents mainly represent cash on hand, demand deposits placed with large reputable banks in the United States of America and China, and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months or less. As of December 31, 2021 and 2022, there were cash on hand and demand deposits with terms of and less than three months denominated in U.S. dollars amounting to approximately US$999.9 million and US$866.7 million, respectively (equivalent to approximately RMB6,375.1 million and RMB6,036.1million, respectively). As of December 31, 2021 and 2022, the Group had cash held in accounts managed by online payment platforms such as Alipay and Paypal in connection with the collection of online service fees for a total amount of RMB50.7 million and RMB51.4 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets. As of December 31, 2021 and 2022, the Group had approximately RMB 1,554.5 and restricted cash held by its PRC subsidiaries and the VIEs, representing % and % 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, 2021 and 2022, there were time deposits denominated in U.S. dollars amounting to approximately US$1,197.1 million, and US$684.6 million, respectively (equivalent to approximately RMB7,632.3 million and RMB4,768.0 million, respectively). The Group had no other lien arrangements for the years ended December 31, 2020, 2021 and 2022. Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the consolidated balance sheets. As of December 31, 2021 and 2022, the restricted cash balance was nil and RMB14.8 million. h) Receivables, net Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Group’s accounts receivable and other receivables recorded in prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from advertising customers, and receivables from distribution channels. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The Group recorded a provision for current expected credit loss. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Beginning balance prior to ASC 326 17,696 — — Impact of adoption to ASC 326 17,900 — — Beginning balance 35,596 121,003 292,473 Provisions 99,165 189,165 130,549 Write-offs (13,758 ) (17,695 ) (117,487 ) Ending balance 121,003 292,473 305,535 i) Inventories, net Inventories, mainly represent products for the Group’s e-commerce j) 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. k) 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, mainly vary from 1 to 10 years License rights of mobile games shorter of the licensed period or projected useful life of mobile games, mainly vary from 1 to 3 years Intellectual property and others 1 - If expectations of the usefulness of the content are revised downward, the unamortized cost is written down to the fair value, which establishes a new cost basis. l) 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, The Group, therefore, chooses the quantitative assessment directly and performs the goodwill impairment test by comparing the fair value of the reporting unit with it carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The estimated fair value of reporting unit is determined using either an income approach or a market approach, when appropriate. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. The Group as a whole is determined to be one reporting unit for goodwill impairment testing. The Group applied the quantitative assessment and performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to it carrying amounts. The Group determines the fair value of the reporting unit based on its quoted stock price, and no impairment charge was recognized for any of the periods presented. m) Impairment of long-lived assets other than goodwill 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 future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. n) 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, platforms of applications, development of online games and the termination of certain game projects. 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. o) 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 expenses consist primarily of costs for the promotion of corporate image and product marketing. The Group expenses all marketing and promotion costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2020, 2021 and 2022, the marketing and promotional expenses were RMB3,006.0 million, RMB5,102.9 million and RMB4,051.3 million, respectively. p) General and administrative expenses General and administrative expenses consist primarily of salaries and other compensation-related expenses to the Group’s general and administrative personnel, professional fees, severance cost, rental expenses and allowance for doubtful accounts. q) Leases The Group recognizes the right-of-use The Group elected to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, and to not separate non-lease Right-of-use The Group leases office space under non-cancelable 2026 December 31, 2022 RMB in thousands 2023 245,028 2024 233,819 2025 195,215 2026 116,212 Total future lease payments 790,274 Impact of discounting remaining lease payments (64,937 ) Total lease liabilities 725,337 Operating lease cost for the years ended December 31, 2020, 2021 and 2022 was RMB107.2 million, 177.4 million and RMB 275.1 million, respectively, which excluded cost of short-term contracts. Short-term lease cost for the year s For the Year Ended December 31, 2020 2021 2022 RMB in thousands Cash payments for operating leases 107,772 161,997 200,376 Right-of-use 260,867 152,481 467,765 r) Share-based compensation Share based compensation expenses arise from share-based awards, including share options and restricted share units (“RSUs”) 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 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. The Group recognizes the estimated compensation cost of restricted share units based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term for service-based RSUs. For share-based awards 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 US IPO as performance condition, share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the requisite service period. s) 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. t) 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 investments in publicly traded companies with the intention to be sold within twelve months. In accordance with ASC 825, Financial Instruments For 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 the consolidated statements of operations and comprehensive loss as “Investment income/(loss), net (including impairments)”. 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 method and other investments accounted for at fair value. 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 (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. 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, historical financial performance, financing needs, and industry environment. An impairment loss recognized equals 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 Investments accounted for at fair value In accordance with ASC 825, Financial Instruments For investments in publicly traded companies with an intention of holding greater than one year, 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 the consolidated statements of operations and comprehensive loss as “Investment income/(loss), net (including impairments)”. u) 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 Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more-likely-than-not two-step two-step more-likely-than-not material v) Revenue recognition 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 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, 2020, 2021 and 2022, 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 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 two to nine 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 paying 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 paying 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. 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. The Group applies portfolio approach in estimating the average playing period of the paying players for the recognition of mobile game revenue given that the effect of applying a portfolio approach to a group game players’ behaviors would not differ materially from considering each one of them individually. In accordance with ASC 606-10-55-39, in-game in-game Proceeds earned from selling in-game Jointly operated mobile game distribution services The Group is also offering distribution services for mobile games developed by the 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 Valued added services (“VAS”) The Group offers premium membership, live broadcasting, comic s The Group offers premium membership services which provide subscribing members access to streaming of premium content in exchange for a non-refundable 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 on their own. The Group creates and sells virtual items to users so that the users present them simultaneously to hosts to show their support. The virtual items sold by the Group comprise of either (i) consumable items or (ii) time-based items, such as privilege titles etc. Revenues derived from the sale of virtual items are recorded on a gross basis as the Group acts as the principal to fulfill all obligations related to the sale of virtual items in accordance with ASC 606-10-55-39. point-in-time 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. Advertising services The Group provides various advertising formats, mainly include but not limited to advertisements appearing on the app opening page, banner text-links, logos, buttons and rich media, performance-based advertising and native advertisements which are customized according to advertisers’ needs. The Group determines each format of advertisements which 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 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 amount of incentive to be provided to customers. E-commerce E-commerce e-commerce e-sports E-commerce 606-10-55-39, 606-10-32-25. Net revenues presented on the consolidated statements of operations and comprehensive loss are net of sales discount and sales tax. Other Estimates and Judgments The Group estimates revenue of mobile game, 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 and actual revenue in the reporting period when the Group determines the actual amounts. The revenue on the final revenue report have not differed significantly from the reported revenue for the periods presented. 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 and other VAS, and e-commerce 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 i |
Concentrations and Risks
Concentrations and Risks | 12 Months Ended |
Dec. 31, 2022 | |
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 For the Year Ended December 31, 2020 2021 2022 RMB in thousands Total number of telecommunications service providers 116 126 153 Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure 3 3 3 Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers 55 % 55 % 45 % b) Foreign currency exchange rate risk The functional currency and the reporting currency of the Company are U.S. dollars and RMB, respectively. The Group’s exposure to foreign currency exchange rate risk primarily relates to cash and cash equivalents, time deposits, short-term and long-term investments, short-term loan, long-term debt and accounts payable denominated in the U.S. dollars. Most of the Group’s revenues, costs and expenses are denominated in RMB, while the short-term loan, long-term debt and a portion of cash and cash equivalents, time deposits, short-term and long-term investments, and accounts payable are denominated in U.S. dollars. Any significant fluctuation of RMB against U.S. dollars may materially and adversely affect the Group’s cash flows, revenues, earnings and financial positions. 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, restricted cash, accounts receivable, and money market funds (recorded in the short-term investments) and financial products (recorded in the short-term and long-term investments) with variable interest rates referenced to performance of underlying assets issued by commercial banks and other financial institutions. As of December 31, 2021 and 2022, substantially all of the Group’s cash and cash equivalents and time deposits were held in major financial institutions located in the United States of America and China, which management consider being of high credit quality. Accounts receivable is typically unsecured and is primarily derived from revenue earned from mobile game services (mainly relates to remittances due from payment channels and distribution channels) and advertising services. There was no individual payment channel that had receivable balance exceeding 10% of the Group’s accounts receivable balance as of December 31, 2021 and 2022. 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, 2020, 2021 and 2022. 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 11% of the Group’s total net revenues for the year ended December 31, 2020. And there is no single distribution channel of mobile games generated 10% or more of the Group’s net revenues for the years ended December 31, 2021 and 2022. e) Mobile games Mobile game revenues accounted for 40%, 26% and 23% of the Group’s total net revenues for the years ended December 31, 2020, 2021 and 2022, respectively. One mobile game individually contributing more than 10% of the Group’s total net revenues for the year ended December 31, 2020 was as follows. No mobile games individually contributed more than 10% of the Group’s total net revenues for the year s For the Year Ended December 31, 2020 2021 2022 Mobile game 1 11 % N/A N/A |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 4. Prepayments and Other Current Assets The following is a summary of prepayments and other current December 31, December 31, RMB in thousands Prepayments for revenue sharing cost* 1,117,431 559,178 Inventories, net 455,767 437,451 Prepayments for sales tax 523,282 435,373 Prepayments of marketing and other operational expenses 181,764 125,685 Interest income receivable 10,927 79,641 Prepayments to inventory suppliers 94,746 76,598 Prepayments for content cost 73,496 62,564 Deposits 106,555 31,461 Loans to investees or ongoing investments 68,681 25,458 Prepayments/ receivables relating to jointly invested content 36,246 22,901 Others 138,153 94,263 Total 2,807,048 1,950,573 * 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 sheets 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, 2022 | |
Short-term Investments [Abstract] | |
Short-term Investments | 5. Short-term Investments The following is a summary of short-term investments: December 31, 2021 December 31, 2022 RMB in thousands Financial products 13,583,580 3,580,792 Investments in publicly traded companies 1,426,946 1,042,660 Money market funds 50,196 — Total 15,060,722 4,623,452 For the years ended December 31, 2020, 2021 and 2022, the Group recorded investment income of RMB74.0 million, RMB138.3 million and RMB18.2 million related to short-term investments on the consolidated statements of operations and comprehensive loss, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net The following is a summary of property and equipment, net: December 31, 2021 December 31, 2022 RMB in thousands Leasehold improvements 221,280 282,007 Servers and computers 2,277,947 2,830,434 Others 59,871 64,595 Total 2,559,098 3,177,036 Less: accumulated depreciation (1,208,842 ) (1,949,873 ) Net book value 1,350,256 1,227,163 Depreciation expenses were RMB326.5 million, RMB538.6 million and RMB755.5 million for the years ended December 31, 2020, 2021 and 2022, respectively. No impairment was recognized for any of periods presented. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | 7. Intangible Assets, Net The following is a summary of intangible assets, net: As of December 31, 2021 Gross Accumulated Net RMB in thousands Licensed copyrights of content 5,567,213 (3,245,622 ) 2,321,591 License rights of mobile games 455,687 (229,559 ) 226,128 Intellectual property and others 1,674,232 (386,351 ) 1,287,881 Total 7,697,132 (3,861,532 ) 3,835,600 As of December 31, 2022 Gross Accumulated Net RMB in thousands Licensed copyrights of content 7,131,626 (4,622,992 ) 2,508,634 License rights of mobile games 427,726 (300,659 ) 127,067 Intellectual property and others 2,337,508 (646,419 ) 1,691,089 Total 9,896,860 (5,570,070 ) 4,326,790 Amortization expenses were RMB1,395.1 million, RMB 1,903.2 million and RMB2,581.3 million for the years ended December 31, 2020, 2021 and 2022, respectively. No impairment charge was recognized for any of the periods presented. As of December 31, 2022, the licensed copyrights of content have weighted-average useful lives of 4.04 years. The intangible assets amortization expense for future years is expected to be as follows: Intangible assets amortization expense RMB in thousands 2023 1,443,225 2024 901,334 2025 533,749 2026 371,679 2027 242,666 Thereafter 834,137 Total expected amortization expense 4,326,790 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination, Goodwill [Abstract] | |
Goodwill | 8. Goodwill December 31, December 31, RMB in thousands Beginning balance 1,295,786 2,338,303 Additions (Note 25) 1,042,517 386,827 Ending balance 2,338,303 2,725,130 No impairment charge was recognized for the years ended December 31, 2020, 2021 and 2022, respectively. |
Long-term Investments, Net
Long-term Investments, Net | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Investments [Abstract] | |
Long-term Investments, Net | 9. 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 method and other investments accounted for at fair value. December 31, December 31, RMB in thousands Equity investments accounted for using the measurement alternative 3,344,465 2,844,630 Equity investments accounted for using the equity method 1,235,289 1,923,144 Investments accounted for at fair value 922,770 883,244 Total 5,502,524 5,651,018 Equity investments using the measurement alternative The Group elects to use measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes, in accordance with ASU 2016-01. Under this measurement alternative, changes in the carrying value of the equity investments will be recognized in current earning, whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in “Investment income/(loss), net (including impairments)” equal to the difference between the carrying value and fair value. Nil, RMB31.5 million re-measurement m December 31, 2020, 2021 and 2022, respectively. The Group recorded impairment charges for long-term investments of RMB8.0 million, RMB91.5 million and RMB465.6 million as “Investment income/(loss), net (including impairments)” for the years ended December 31, 2020, 2021 and 2022, respectively. When events or changes in circumstances that indicate the fair value of the investments may be less than their carrying value, included but not limited to, the investees’ unsatisfied financial performance with no obvious upturn or potential financing solutions in the foreseeable future, the Group made evaluation and determined the fair value of these investments was less than their carrying value and impairment loss was recognized accordingly. The Company disposes Equity investments accounted for using the equity method RMB50.5 million, RMB37.2 million and RMB211.6 million of the Group’s proportionate share of equity investee’s net loss, was recognized in “Investment income/(loss), net (including impairments)” for the years ended December 31, 2020, 2021 and 2022, respectively. Investments accounted for at fair value Investments accounted for at fair value primarily include financial products with variable interest rates referenced to performance of underlying assets and with original maturities more than one year and investments in publicly traded companies with an intention of holding more than one year. A gain of RMB24.9 million, and a loss of RMB156.0 million and RMB198.6 million resulted from the change in fair value was recognized in “Investment income/(loss), net (including impairments)” for the years ended December 31, 2020, 2021 and 2022, respectively. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2022 | |
Taxation | |
Taxation | 10. Taxation Composition of income tax The following table presents the composition of income tax expenses for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Current income tax expenses 48,081 102,715 122,451 Withholding income tax expenses 18,754 14,066 18,189 Deferred tax benefits (13,466 ) (21,492 ) (36,495 ) Total 53,369 95,289 104,145 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 Hong Kong profits tax has been provided for at the rate of 16.5% on the estimated assessable profits for the years ended December 31, 2020, 2021 and 2022, respectively. China The Enterprise Income Tax (“EIT Law”), which became effective on January 1, 2008, applies a uniform enterprise income tax (“EIT”) rate to both foreign-invested enterprises (“FIEs”) and domestic companies. Preferential tax treatments will 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”, “Encouraged Enterprises” and/or “High and New Technology Enterprises” (“HNTEs”). The aforementioned preferential tax rates are subject to annual review by the relevant tax authorities in China. Certain subsidiaries were qualified as HNTEs or Encouraged Enterprises and enjoyed a preferential income tax rate at 15% for the corresponding years from the year they are qualified, respectively, provided that they continue to qualify as HNTEs or Encouraged Enterprises during such periods. 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, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 % % % Statutory income tax rate 25.00 25.00 25.00 Permanent differences 0.60 (1.19 ) 6.74 Tax rate difference from statutory rate in other jurisdictions* (3.90 ) (1.43 ) (3.19 ) Tax effect of preferential tax treatments (8.29 ) (7.94 ) (8.91 ) Withholding tax (0.63 ) (0.21 ) (0.25 ) Change in valuation allowance (14.56 ) (15.65 ) (20.79 ) Effective income tax rate (1.78 ) (1.42 ) (1.40 ) * It is primarily due to the tax effect of the Company as a tax-exempt As of December 31, 2022, certain entities of the Group had net operating tax loss carry forwards as follows: RMB in Loss expiring in 2023 88,466 Loss expiring in 2024 189,744 Loss expiring in 2025 269,421 Loss expiring in 2026 952,055 Loss expiring in 2027 and thereafter 14,406,710 Total 15,906,396 b) Sales tax The Group’s majority of 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, 2021 and 2022: December 31, December 31, RMB in thousands Deferred tax assets: Deferred revenue 143,688 473,200 Accrued expenses and other payables 150,092 112,780 Advertising expenses in excess of deduction limit 130,720 284,205 Net operating tax loss carry forwards 1,662,884 2,684,042 Others 71,048 146,831 Total deferred tax assets 2,158,432 3,701,058 Less: valuation allowance (2,122,077 ) (3,657,467 ) Net deferred tax assets 36,355 43,591 Deferred tax liabilities Acquired intangible assets (Note 25) (82,191 ) (110,923 ) Total deferred tax liabilities (82,191 ) (110,923 ) 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 more-likely-than-not 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 2020 (537,359 ) 105 (484,445 ) 44,366 (977,333 ) 2021 (977,333 ) — (1,154,342 ) 9,598 (2,122,077 ) 2022 (2,122,077 ) — (1,543,301 ) 7,911 (3,657,467 ) 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, 2021 and 2022, the Group did not record any withholding tax on the retained earnings of its subsidiaries and VIEs in the PRC as most of which were still in accumulated deficit position. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Payable | |
Taxes Payable | 11. Taxes Payable The following is a summary of taxes payable as of December 31, 2021 and 2022: December 31, 2021 December 31, 2022 RMB in thousands EIT payable 69,773 109,864 VAT payable 52,614 58,624 Withholding income tax payable 29,242 55,854 Withholding individual income taxes for employees 44,968 46,739 Others 7,173 45,163 Total 203,770 316,244 |
Short-term Loan and Current Por
Short-term Loan and Current Portion of Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Short-term Loan and Current Portion of Long-term Debt | 12. Short-term loan and current portion of long-term debt Balance at December 31, 2021, Balance at December 31, 2022 Interest Rate Maturity Date Amount Interest Rate Maturity Date Amount RMB in thousands RMB in thousands Unsecured bank loans 3.60%~3.70 % Within 12 months 943,658 3.10%~3.70 % Within 12 months 1,242,882 Unsecured borrowing 3.95 % Within 12 months 288,448 3.79 % Within 12 months 240,871 2027 Notes (Note 14) N/A N/A — 1.25 % Within 12 months 5,137,633 Total 1,232,106 6,621,386 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021 and 2022: December 31, December 31, RMB in thousands Accrued marketing expenses 1,321,776 777,572 Leasing 206,758 238,687 Payables to producers and licensors 139,951 159,950 Consideration payable for acquisitions and investments 526,453 110,518 Professional fees 64,510 94,342 Deposits 40,445 48,637 Interest payable 26,469 17,731 Advances from/payables to third parties 14,386 6,420 Other staff related cost 5,325 5,372 Others 70,882 75,733 Total 2,416,955 1,534,962 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | 14. Convertible senior notes April 2026 Notes In April 2019, the Group issued US$500.0 million of April 2026 Notes with an interest rate of 1.375% per annum. The net proceeds to the Company from the issuance of the April 2026 Notes were US$488.2 million (RMB3,356.1 million), net of issuance costs of US$11.8 million (RMB81.1 million). The April 2026 Notes may be converted, at an initial conversion rate of 40.4040 ADSs per US$1,000 principal amount (which represents an initial conversion price of US$24.75 per ADS) at each holder’s option at any time prior to the close of business on the second business day immediately preceding the maturity date of April 1, 2026. Holders of the April 2026 Notes may require the Company to repurchase all or part of their April 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 April 2026 Notes were amortized to interest expense over the contractual life to the maturity date (i.e., April 1, 2026). For the years ended December 31, 2020, 2021 and 2022, the April 2026 Notes related interest expense was US$8.5 million , 2027 Notes In June 2020, the Group issued US$800.0 million of 2027 Notes with an interest rate of 1.25% per annum. The net proceeds to the Company from the issuance of the 2027 Notes were US$786.1 million (RMB5,594.8 million), net of issuance costs of US$13.9 million (RMB98.6 million). The 2027 Notes may be converted, at an initial conversion rate of 24.5516 ADSs per US$1,000 principal amount (which represents an initial conversion price of US$40.73 per ADS) at each holder’s option at any time prior to the close of business on the second business day immediately preceding the maturity date of June 15, 2027. Holders of the 2027 Notes may require the Company to repurchase all or part of their 2027 Notes in cash on June 15, 2023 and June 15, 2025, 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 2027 Notes were amortized to interest expense over the contractual life to the maturity date (i.e., June 15, 2027). For the year s As of December 31, 2022, RMB5,137.6 million (US$737.7 million) of 2027 Notes are short-term in nature because the 2027 Notes holder had a non-contingent December 2026 Notes In November 2021, the Group issued US$1,600 million of December 2026 Notes with an interest rate of 0.50% per annum. The net proceeds to the Company from the issuance of the December 2026 Notes were US$1,576.6 million (RMB10.1 billion), net of issuance costs of US$23.4 million (RMB149.6 million). The December 2026 Notes may be converted, at an initial conversion rate of 10.6419 ADSs per US$1,000 principal amount (which represents an initial conversion price of US$93.97 per ADS) at each holder’s option at any time prior to the close of business on the second business day immediately preceding the maturity date of December 1, 2026. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs or a combination of cash and ADSs, at the Company’s election. Holders of the Notes may elect to receive Class Z ordinary shares in lieu of any ADSs deliverable upon conversion. Holders of the December 2026 Notes may require the Company to repurchase all or part of their December 2026 Notes in cash on December 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 December 2026 Notes were amortized to interest expense over the contractual life to the maturity date (i.e., December 1, 2026). For the years ended December 31,2021 and 2022, the December 2026 Notes related interest expense was US$1.4 million and US$11.0 million (RMB73.4 million). The Company accounted for the April 2026 Notes, 2027 Notes and December 2026 Notes as single instruments as debt measured at its amortized cost, as none of the embedded features require bifurcation and recognition as derivatives and the April 2026 Notes, 2027 Notes and December 2026 Notes were not issued with a substantial premium. The issuance costs were recorded as an adjustment to the debt and are amortized as interest expense using the effective interest method. As of December 31, 2021 and 2022, the principal amount of April 2026 Notes was RMB2,737.5 million and RMB2,990.2 million, respectively. The unamortized debt issuance costs were RMB39.8 million and RMB33.4 million as of December 31, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the principal amount of 2027 Notes was RMB5,100.6 million and RMB5,195.6 million, respectively. The unamortized debt issuance costs were RMB69.2 million and RMB58.0 million as of December 31, 2021 and 2022 , respectively. As of December 31, 2021 and 2022, the principal amount of December 2026 Notes was RMB10,201.1 million and RMB5,792.6 million. The unamortized debt issuance costs were RMB146.0 million and RMB66.3 million as of December 31, 2021 and 2022 , respectively. During the year ended December 31, paid-in During the year ended December 31, paid-in During the year ended December 31, As of December 31, 2022, the Company repurchased an aggregate principal amount of US$768.3 million (RMB5.2 billion) of December 2026 Notes for a total cash consideration of US$568.6 million (RMB3.8 billion), with the gain of US$ 190.3 million (RMB1,289.5 m As of December 31, 2022, the Company repurchased an aggregate principal amount of US$54.0 million (RMB385.7 million) of 2027 Notes for a total cash consideration of US$49.3 million (RMB352.0 million), with the gain of US$ 4.1 million (RMB29.3 million). The following table provides a summary of the Company’s non-current portion of unsecured senior notes as of December 31, 2021 and December 31, 2022: December 31, 2021 December 31, 2022 Effective interest Amounts Amounts rate RMB in thousands April 2026 Notes 2,697,698 2,956,815 1.74 % 2027 Notes 5,031,312 — 1.52 % December 2026 Notes 10,055,082 5,726,335 0.80 % Carrying value 17,784,092 8,683,150 Unamortized discount and debt issuance costs 255,033 99,698 Total principal amounts of unsecured senior notes 18,039,125 8,782,848 As of December 31, 2022, the fair value of April 2026 Notes, 2027 Notes and December 2026 Notes, based on Level 2 inputs, was RMB 12.9 billion. As of December 31, 2022, RMB135.0 million, RMB9.2 billion and RMB5.2 billion in aggregate principal amount and interest expenses related to the above unsecured senior notes are expected to be repaid within one year, in 1-3 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary shares | |
Ordinary shares | 15. Ordinary Shares In April 2020, 17,310,696 ADSs, representing 17,310,696 Class Z Ordinary Shares, were issued and sold to Sony. The net proceeds to the Company from the offering, after deducting offering expenses, were US$399.4 million (RMB2,817.5 million). In March 2021, the Company listed its Class Z ordinary shares on the main board of the Hong Kong Stock Exchange. The Company issued a total of 28,750,000 Class Z ordinary shares in the global offering, including the fully exercised over-allotment option of 3,750,000 Class Z ordinary shares. Net proceeds from the global offering, including the over-allotment option, after deducting underwriting fees and other offering expenses, were approximately HKD22.9 billion (RMB19.3 billion). The Company announced in March 2022 that its board of directors had authorized a share repurchase program, under which the Company may repurchase up to US$500 million of its ADSs for the next 24 months. The Company had repurchased a total of 2.6 million ADSs for a total cost of US$53.6 million as of December 31, 2022. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits | |
Employee Benefits | 16. Employee Benefits The Company’s subsidiaries and the VIEs and subsidiaries of the 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 and subsidiaries of the 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, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Contributions to medical and pension schemes 195,655 695,310 934,876 Other employee benefits 40,216 65,990 99,303 Total 235,871 761,300 1,034,179 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 17. Share-based Compensation a) Description of share option and RSUs plans In July 2014, the Group adopted its Global Share Incentive Plan (the “Global Share Plan”), which permits the grant of options 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 Global Share Plan, is 19,880,315 shares. The Global Share Plan was terminated on the Primary Conversion Effective Date. 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 its As at the date on which the voluntary conversion of its secondary listing status to primary listing on the Hong Kong Stock Exchange becomes effective , the G its Option awards are granted with an exercise price determined by the Board of Directors. Those option awards generally vest over a period of zero six zero RSUs The following table presents a summary of the Group’s service-based RSUs activities for the year ended December 31, 2022: Employees Senior Consultants Total Weighted (In thousands) (In thousands) (In thousands) (In thousands) US$ Outstanding at January 1, 2022 — — — — — Granted 1,932 — 35 1,967 24.59 Vested — — — — — Forfeited — — — — — Unvested at December 31, 2022 1,932 — 35 1,967 24.59 The aggregate number of Class Z Ordinary Shares available for future grant under the 2018 Plan was 28,706,326 as of December 31, 2022. As of December 31, 2022, total unrecognized compensation expenses related to unvested service-based RSUs granted under the 2018 Plan, adjusted for estimated forfeitures, was RMB 292.0 million, which is expected to be recognized over a weighted-average period of 3.9 years and may be adjusted for future changes in estimated forfeitures. There is no vested RSUs for the year ended December 31,2022. Share options 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, 2020 2021 2022 Expected volatility 50.1%-55.0 % 53.0%-53.5 % 57.6%-58.0 % Weighted average volatility 51.9 % 53.2 % 57.9 % Expected dividends — — — Risk-free rate 0.4%-0.7 % 0.9%-1.4 % 2.7%-3.6 % Contractual term (in years) 6-7 6-7 6-7 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 has never declared or paid any cash dividends on its capital stock, and the Company does not anticipate any dividend payments in the foreseeable future. Contractual term is the remaining contract life of the share options. The Group estimated the risk-free interest rate based on the yield to maturity of U.S. treasury bonds denominated in US dollars at the share option grant date. ( c Share options activities The following table presents a summary of the Group’s share options activities for the years ended December 31, 2020, 2021 and 2022: Employees Senior Consultants Total Weighted Weighted Aggregate (In thousands) (In thousands) (In thousands) (In thousands) US$ (In years) (RMB in Outstanding at January 1, 2020 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Granted 6,966 8,700 50 15,716 2.9007 Exercised (2,784 ) (1,643 ) (65 ) (4,492 ) 0.0001 Forfeited (1,101 ) — — (1,101 ) 0.4234 Outstanding at December 31, 2020 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Outstanding at January 1, 2021 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Granted 3,927 — 21 3,948 0.0001 Exercised (2,094 ) (1,101 ) (68 ) (3,263 ) 0.0001 Forfeited (472 ) — — (472 ) 0.0001 Outstanding at December 31, 2021 12,716 9,611 183 22,510 2.0010 5.01 6,372,503 Outstanding at January 1, 2022 12,716 9,611 183 22,510 2.0010 5.01 6,372,503 Granted 5,661 6 162 5,829 0.0036 Exercised (2,575 ) (1,204 ) (150 ) (3,929 ) 0.0001 Forfeited (2,500 ) — — (2,500 ) 0.2331 Outstanding at December 31, 2022 13,302 8,413 195 21,910 2.0283 4.70 3,305,336 Exercisable at December 31, 2022 2,113 2,580 22 4,715 2.8747 4.00 778,043 The weighted average grant date fair value of share options granted for the years ended December 31, 2020, 2021 and 2022 was RMB262.0, RMB423.6 and RMB126.8 (US$18.5) per share, respectively. As of December 31, 2022, total unrecognized compensation expenses related to unvested options granted under the Global Share Plan and the 2018 Plan, adjusted for estimated forfeitures, was RMB 3,415.8 million, which is expected to be recognized over a weighted-average period of 3.5 years and may be adjusted for future changes in estimated forfeitures. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2022 | |
Net Loss Per Share | |
Net Loss Per Share | 18. Net Loss per Share For the years ended December 31, 2020, 2021 and 2022, the Company had potential ordinary shares, including share options, RSUs granted, and ordinary shares issuable upon the conversion of the April 2026 Notes, 2027 Notes and December 2026 Notes, where applicable. As the Group incurred losses for the years ended December 31, 2020, 2021 and 2022, these potential ordinary shares were anti-dilutive and excluded from the calculation of diluted net loss per share. For the year ended December 31, 2020, the numbers of share options and the number of ordinary shares issuable upon the conversion of the April 2026 Notes and 2027 Notes, which were anti-dilutive and excluded from the computation of diluted net loss per share, were 8,927,697 shares, 20,202,000 shares and 19,641,280 shares, respectively. For the year ended December 31, 2021, the numbers of share options and the number of ordinary shares issuable upon the conversion of the April 2026 Notes, 2027 Notes and December 2026 Notes, which were anti-dilutive and excluded from the computation of diluted net loss per share, were 13,249,083 shares, 18,706,486 shares,19,641,274 shares and 17,027,040 shares, respectively. For the year ended December 31, 2022, the numbers of share options, RSUs and the number of ordinary shares issuable upon the conversion of the April 2026 Notes, 2027 Notes and December 2026 Notes, which were anti-dilutive and excluded from the computation of diluted net loss per share, were 2,069,570 shares, nil, 17,347,721 shares, 19,382,489 shares and 14,466,365 shares, respectively. The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands, except for share and per share data Numerator: Net loss (3,054,017 ) (6,808,739 ) (7,507,653 ) Accretion to redeemable noncontrolling interests (4,292 ) — — Net loss attributable to noncontrolling interests 46,605 19,511 10,640 Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation (3,011,704 ) (6,789,228 ) (7,497,013 ) Denominator: Weighted average number of ordinary shares outstanding, basic 345,816,023 379,898,121 394,863,584 Weighted average number of ordinary shares outstanding, diluted 345,816,023 379,898,121 394,863,584 Net loss per share, basic (8.71 ) (17.87 ) (18.99 ) Net loss per share, diluted (8.71 ) (17.87 ) (18.99 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies (a) Commitments Long-term and short-term debt obligations The Group’s long-term debt obligations are to repay the principal amount and cash interests in connection with the April 2026 Notes, 2027 Notes and December 2026 Notes. The expected repayment schedules of the April 2026 Notes, 2027 Notes and December 2026 Notes has been disclosed in Note 14. (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 material liabilities in this regard as of December 31, 2021 and 2022. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions and Balances | |
Related Party Transactions and Balances | 20. 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, 2020 2021 2022 RMB in thousands Purchases of goods and services 35,131 117,116 206,931 (Acquire of)/Transfer of long-term investments 1 (110,039 ) (40,837 ) 275,000 Purchase of noncontrolling interests of Chaodian Inc. (“Chaodian”) 2 257,288 — — Capital contribution/Loans to an entity 3 — 2,785,314 — Investment income and interest income 2,238 14,366 78,827 Sales of goods and services 4,915 9,136 13,953 The Group had the following significant related party balances as of December 31, 2021 and 2022, respectively: December 31, 2021 December 31, 2022 RMB in thousands Amount due from related parties Due from investment funds 1 48,135 103,689 Due from the Entity 3 1,709,689 1,308,652 Due from other investees 283,492 182,579 Total 2,041,316 1,594,920 Amount due to related parties 4 216,434 108,307 1. In July 2020, the Company acquired certain equity interests of two investments from one investment fund, of which the Company is its limited partner. The consideration was RMB110.0 million. In 2022, the Company transferred several equity investments of the Group to another investment fund, of which the Company is its limited partner. The consideration was RMB275.0 million . non-trade 2. In September 2020, the Company acquired the rest equity interests of Chaodian from certain noncontrolling shareholders, which included some related parties of the Company. The consideration was determined by referenced to a third-party valuer’s valuation and the considerations were settled in 2020. 3. The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. The balance as of December 31, 2021 and 2022 represents interest-bearing loans and interest expenses related to the Entity, which are non-trade 4. The balances as of December 31, 2021 and 2022 mainly represent considerations related to long-term investments, which are non-trade in nature. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Segment Information | 21. 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 segment is 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, 2022 | |
Fair Value Measurement | |
Fair Value Measurement | 22. 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 investments in publicly traded companies at fair value. Money market funds and equity investments in publicly traded companies Financial products Accounts receivable, amounts due from/to related parties and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Accounts payable, accrued liabilities, short-term loan and other payables are financial liabilities with carrying values that approximate fair value due to their short-term nature. The Group measures equity investments accounted for using the equity method at fair value on a non-recurring |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets | |
Restricted Net Assets | 23. 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 |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | 24. Parent Company Only Condensed Financial Information The Company performed a test on the restricted net assets of its consolidated subsidiaries and the VIEs in accordance with Securities and Exchange Commission Regulation S-X 4-08 The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, or guarantees as of December 31, 2021 and 2022. Condensed balance sheets December 31, 2021 December 31, 2022 RMB in thousands Cash and cash equivalents 1,748,896 270,138 Time deposits 7,625,337 4,067,326 Amounts due from Group companies 23,306,176 22,313,954 Prepayments and other current assets 11,773 61,631 Short-term investments 13,107,720 1,091,044 Long-term investments, net 1,448,100 1,157,990 Investment in subsidiaries and net asset s — 226,249 Total assets 47,248,002 29,188,332 Short-term loan and current portion of long-term debt — 5,137,633 Deferred revenue 40,167 32,513 Accrued liabilities and other payables 126,512 97,208 Other long-term liabilities 17,784,092 8,683,150 Deficit in subsidiaries an d net loss of 7,593,564 — Total liabilities 25,544,335 13,950,504 Total Bilibili Inc’s shareholders’ equity 21,703,667 15,237,828 Total shareholders’ equity 21,703,667 15,237,828 Total liabilities and shareholders’ equity 47,248,002 29,188,332 Condensed statements of comprehensive loss and cash flows For the Year Ended December 31, 2020 2021 2022 RMB in thousands Total costs and expenses (44,090 ) (12,405 ) (30,558 ) Net Loss from subsidiaries and net loss of VIEs and VIEs’ subsidiaries (2,940,906 ) (6,713,764 ) (7,685,211 ) (Loss)/Gain from non-operations (26,708 ) (63,059 ) 218,756 Loss before income tax expenses (3,011,704 ) (6,789,228 ) (7,497,013 ) Net loss (3,011,704 ) (6,789,228 ) (7,497,013 ) For the Year Ended December 31, 2020 2021 2022 RMB in thousands Net cash used in operating activities (113,574 ) (104,672 ) (650,630 ) Purchase of short-term investments (455,347 ) (48,781,106 ) (33,683,941 ) Maturities of short-term investments 465,726 36,744,305 45,951,288 Placements of time deposits (9,604,228 ) (10,658,126 ) (4,878,180 ) Maturities of time deposits 4,925,241 7,600,828 9,133,225 Investments in and loans to subsidiaries, VIEs and VIEs’ subsidiaries (5,102,250 ) (11,168,671 ) (13,131,173 ) Other investing activities (600,067 ) (1,153,850 ) 283,028 Net cash (used in)/provided by investing activities (10,370,925 ) (27,416,620 ) 3,674,247 Proceeds from exercise of employees’ share options 3 3 4 Proceeds from issuance of ordinary shares, net of issuance costs of US$563 and 2,817,458 19,288,423 — Repurchase of convertible senior notes — — (4,201,506 ) Proceeds from issuance of convertible senior notes, net of issuance costs of US$13,857, US$23,402 and nil, respectively 5,594,779 10,085,520 — Repurchase of shares — — (347,581 ) Net cash provided by/(used in) financing activities 8,412,240 29,373,946 (4,549,083 ) Basis of presentation The Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries and VIEs. For the Company only condensed financial information, the Company records its investments in subsidiaries and net assets of VIEs under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Share in the subsidiaries’ loss and loss of VIEs and VIEs’ subsidiaries are presented as “Net Loss from subsidiaries and net loss of VIEs and VIEs’ subsidiaries” in the condensed statements of comprehensive loss. The parent company only condensed financial information should be read in conjunction with the Group’ consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions | |
Acquisitions | 25. Acquisitions Transactions with Chaodian Prior to 2020, the Group held 63.6% of equity interest in Chaodian. In September 2020, the Company acquired the rest of noncontrolling interests of Chaodian, with the total consideration of RMB744.6 million including with a cash consideration of RMB250.5 million and 1,731,100 Class Z ordinary shares. The consideration was determined by referenced to a third-party valuer’s valuation. The difference between the total consideration and the carrying value of the noncontrolling interest of Chaodian was recognized as additional paid-in capital, amounting to RMB193.3 million. Following the completion of this transaction, the Company held 100% of equity interest in Chaodian. Transactions with one animation content production company (“Anime Business”) Prior to 2021, the Group held 8.1% equity share of Anime Business through several investments with preferred rights, which was accounted for as long-term investments using alternative measure method. In January 2021, the Group acquired remaining equity with the total consideration of RMB612.3 million, including the cash consideration of RMB369.1 million and 400,000 restricted Class Z ordinary shares. Upon the completion of this transaction in January 2021, the Group held 100% of equity interests in the Anime Business, which became a consolidated subsidiary of the Group. The consideration of acquisition of Anime Business was allocated based on their fair value of the assets acquired and the liabilities Amount Amortization RMB in thousands Net assets acquired 189,763 Intangible assets —Brand 85,000 8 years —Vendor relationship 75,000 10 years —Non-compete 54,000 6 years Goodwill 283,402 Total 687,165 Total purchase price comprised of: Amount RMB in thousands Cash consideration 369,124 Share consideration 243,203 Fair value of previously held equity interests 74,838 Total 687,165 Goodwill arising from this acquisition was attributable to the synergies between ability of animation content production and the Group’s strategy to expand its content library. Transactions with one Comics distribution company (“Comics Business”) In November 2021, the Company signed an agreement to acquire all of the equity interests in Comics Business with a total cash consideration of RMB600.0 million. Upon the completion of this transaction, the Group held 100% of equity interests in the Comics Business, which became a consolidated subsidiary of the Group. The consideration of acquisition of Comics Business was allocated based on their fair Amount Amortization RMB in thousands Net assets acquired 48,764 Intangible assets —Brand 23,000 10 years —User base 11,000 3 years —Copyrights 269,000 8 years —Technology 4,000 3 years —Non-compete 5,000 2 years Deferred tax liabilities (42,133 ) Goodwill 281,369 Total 600,000 Total purchase price comprised of: Amount RMB in thousands Cash consideration 600,000 Goodwill arising from this acquisition was attributable to the synergies between ability of comics distribution and the Group’s strategy to expand its content library. Transactions with one game development company (“Game Business”) In February 2022, the Company signed an agreement to acquire all of the equity interests in Game Business with a total cash consideration of RMB 800.0 million. Upon the completion of this transaction, the Group held 100 % of equity interests in the Game Business, which became a consolidated subsidiary of the Group. The consideration of acquisition of Game Business was allocated based Amount Amortization RMB in Net assets acquired 333,830 Intangible assets —Non-compete 111,000 6 years —Others 50,965 5 years Deferred tax liabilities (40,491 ) Goodwill 344,696 Total 800,000 Total purchase price comprised of: Amount RMB in thousands Cash consideration 800,000 Goodwill arising from this acquisition was attributable to the Group’s strategy to expand its self-developed capacity in game development. Other acquisitions For the years ended December 31 , 2020 For the Year Ended December 31, Amortization 2020 2021 2022 Amount RMB in thousands Net assets acquired 18,495 28,320 85,369 Intangible assets —Brand — 66,000 — 5 years —Customer relationship — 83,000 — 5 years —Non-compete — 28,000 9,000 6 years —Others 160,636 71,100 61,000 1 to 10 years Deferred tax liabilities (49,140 ) — (17,500 ) Goodwill 283,760 477,746 42,131 Total 413,751 754,166 180,000 Total purchase price comprised of: For the Year Ended December 31, 2020 2021 2022 Amount RMB in thousands Cash consideration 295,323 244,949 150,000 Share consideration 118,428 391,244 — Fair value of previously held equity interests — 117,973 30,000 Total 413,751 754,166 180,000 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, 2020, 2021 and 2022, either individually or in aggregate. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events | |
Subsequent Events | 26. Subsequent Events On January 11, 2023, the Company completed an offering of 15,344,000 American depositary shares, each representing one Class Z ordinary share, par value US$0.0001 per share of the Company (the “ADS Offering”), at US$26.65 per ADS. Shortly thereafter, the Company completed the exchange of an aggregate principal amount of US$384.8 million of its outstanding 0.50% convertible senior notes due December 2026 (the “Exchange Notes”) in privately negotiated transactions for the Company’s issuance of ADSs. The aggregate purchase price of the Exchange Notes in the amount of US$331.2 million was funded by the net proceeds from the ADS Offering. And the remaining net proceeds (after deducting selling commissions) of the ADS Offering is US$68.8 million. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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. |
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, and assessment for the impairment of long-term investments accounted for using the measurement alternative. |
Functional currency and foreign currency translation | d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The Company and several of its overseas subsidiaries use US$ or their respective local currencies as their functional currency. The functional currency of the Group’s PRC entities is RMB. 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 the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in exchange gains/(losses) on the consolidated statements of operations and comprehensive loss. |
Convenience Translation | e) Convenience Translation Translations of balances on the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB 6.8972 , representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 30, 2022. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, or at any other rate. |
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. c. 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, restricted cash, time deposits, accounts receivable, amounts due from/to related parties, short-term investments, accounts payable, short-term loan, accrual liabilities and other payables of which the carrying values approximate their fair values. Please see Note 22 for additional information. |
Cash and cash equivalents, restricted cash and time deposits | g) Cash and cash equivalents, restricted cash and time deposits Cash and cash equivalents mainly represent cash on hand, demand deposits placed with large reputable banks in the United States of America and China, and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months or less. As of December 31, 2021 and 2022, there were cash on hand and demand deposits with terms of and less than three months denominated in U.S. dollars amounting to approximately US$999.9 million and US$866.7 million, respectively (equivalent to approximately RMB6,375.1 million and RMB6,036.1million, respectively). As of December 31, 2021 and 2022, the Group had cash held in accounts managed by online payment platforms such as Alipay and Paypal in connection with the collection of online service fees for a total amount of RMB50.7 million and RMB51.4 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets. As of December 31, 2021 and 2022, the Group had approximately RMB 1,554.5 and restricted cash held by its PRC subsidiaries and the VIEs, representing % and % 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, 2021 and 2022, there were time deposits denominated in U.S. dollars amounting to approximately US$1,197.1 million, and US$684.6 million, respectively (equivalent to approximately RMB7,632.3 million and RMB4,768.0 million, respectively). The Group had no other lien arrangements for the years ended December 31, 2020, 2021 and 2022. Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the consolidated balance sheets. As of December 31, 2021 and 2022, the restricted cash balance was nil and RMB14.8 million. |
Receivables, net | h) Receivables, net Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Group’s accounts receivable and other receivables recorded in prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from advertising customers, and receivables from distribution channels. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The Group recorded a provision for current expected credit loss. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Beginning balance prior to ASC 326 17,696 — — Impact of adoption to ASC 326 17,900 — — Beginning balance 35,596 121,003 292,473 Provisions 99,165 189,165 130,549 Write-offs (13,758 ) (17,695 ) (117,487 ) Ending balance 121,003 292,473 305,535 |
Inventories, net | i) Inventories, net Inventories, mainly represent products for the Group’s e-commerce |
Property and equipment, net | j) 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 | k) 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, mainly vary from 1 to 10 years License rights of mobile games shorter of the licensed period or projected useful life of mobile games, mainly vary from 1 to 3 years Intellectual property and others 1 - If expectations of the usefulness of the content are revised downward, the unamortized cost is written down to the fair value, which establishes a new cost basis. |
Goodwill | l) 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, The Group, therefore, chooses the quantitative assessment directly and performs the goodwill impairment test by comparing the fair value of the reporting unit with it carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The estimated fair value of reporting unit is determined using either an income approach or a market approach, when appropriate. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. The Group as a whole is determined to be one reporting unit for goodwill impairment testing. The Group applied the quantitative assessment and performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to it carrying amounts. The Group determines the fair value of the reporting unit based on its quoted stock price, and no impairment charge was recognized for any of the periods presented. |
Impairment of long-lived assets other than goodwill | m) Impairment of long-lived assets other than goodwill 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 future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Research and development expenses | n) 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, platforms of applications, development of online games and the termination of certain game projects. 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. |
Leases | q) Leases The Group recognizes the right-of-use The Group elected to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, and to not separate non-lease Right-of-use The Group leases office space under non-cancelable 2026 December 31, 2022 RMB in thousands 2023 245,028 2024 233,819 2025 195,215 2026 116,212 Total future lease payments 790,274 Impact of discounting remaining lease payments (64,937 ) Total lease liabilities 725,337 Operating lease cost for the years ended December 31, 2020, 2021 and 2022 was RMB107.2 million, 177.4 million and RMB 275.1 million, respectively, which excluded cost of short-term contracts. Short-term lease cost for the year s For the Year Ended December 31, 2020 2021 2022 RMB in thousands Cash payments for operating leases 107,772 161,997 200,376 Right-of-use 260,867 152,481 467,765 |
Share-based compensation | r) Share-based compensation Share based compensation expenses arise from share-based awards, including share options and restricted share units (“RSUs”) 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 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. The Group recognizes the estimated compensation cost of restricted share units based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term for service-based RSUs. For share-based awards 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 US IPO as performance condition, share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the requisite service period. |
Employee benefits | s) 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 | t) 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 investments in publicly traded companies with the intention to be sold within twelve months. In accordance with ASC 825, Financial Instruments For 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 the consolidated statements of operations and comprehensive loss as “Investment income/(loss), net (including impairments)”. 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 method and other investments accounted for at fair value. 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 (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. 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, historical financial performance, financing needs, and industry environment. An impairment loss recognized equals 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 Investments accounted for at fair value In accordance with ASC 825, Financial Instruments For investments in publicly traded companies with an intention of holding greater than one year, 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 the consolidated statements of operations and comprehensive loss as “Investment income/(loss), net (including impairments)”. |
Taxation | u) 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 Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more-likely-than-not two-step two-step more-likely-than-not material |
Revenue recognition | v) Revenue recognition 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 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, 2020, 2021 and 2022, 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 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 two to nine 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 paying 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 paying 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. 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. The Group applies portfolio approach in estimating the average playing period of the paying players for the recognition of mobile game revenue given that the effect of applying a portfolio approach to a group game players’ behaviors would not differ materially from considering each one of them individually. In accordance with ASC 606-10-55-39, in-game in-game Proceeds earned from selling in-game Jointly operated mobile game distribution services The Group is also offering distribution services for mobile games developed by the 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 Valued added services (“VAS”) The Group offers premium membership, live broadcasting, comic s The Group offers premium membership services which provide subscribing members access to streaming of premium content in exchange for a non-refundable 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 on their own. The Group creates and sells virtual items to users so that the users present them simultaneously to hosts to show their support. The virtual items sold by the Group comprise of either (i) consumable items or (ii) time-based items, such as privilege titles etc. Revenues derived from the sale of virtual items are recorded on a gross basis as the Group acts as the principal to fulfill all obligations related to the sale of virtual items in accordance with ASC 606-10-55-39. point-in-time 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. Advertising services The Group provides various advertising formats, mainly include but not limited to advertisements appearing on the app opening page, banner text-links, logos, buttons and rich media, performance-based advertising and native advertisements which are customized according to advertisers’ needs. The Group determines each format of advertisements which 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 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 amount of incentive to be provided to customers. E-commerce E-commerce e-commerce e-sports E-commerce 606-10-55-39, 606-10-32-25. Net revenues presented on the consolidated statements of operations and comprehensive loss are net of sales discount and sales tax. Other Estimates and Judgments The Group estimates revenue of mobile game, 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 and actual revenue in the reporting period when the Group determines the actual amounts. The revenue on the final revenue report have not differed significantly from the reported revenue for the periods presented. 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 and other VAS, and e-commerce 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 table presents the Group’s net revenues disaggregated by revenue sources: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Mobile games 4,803,382 5,090,926 5,021,290 Value-added services 3,845,663 6,934,886 8,715,170 Advertising 1,842,772 4,523,421 5,066,212 E-commerce 1,507,159 2,834,451 3,096,495 Total net revenues 11,998,976 19,383,684 21,899,167 |
Cost of revenues | w) 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 and content creators, staff costs, content costs, server and bandwidth service costs, 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 | x) 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 | y) Net loss per share Loss per share is computed in accordance with ASC 260, Earnings per Share two-class 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 exercise of outstanding share options and restricted shares units using the treasury stock method and ordinary shares issuable upon the conversion of the April 2026 Notes, 2027 Notes and December 2026 Notes using the if-converted |
Statutory reserves | z) 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 Foreign Invested Enterprises (“FIE”), the Company’s subsidiaries that are FIEs in China have to make appropriations from their after-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, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Appropriations to general reserve funds and statutory surplus funds 4,421 6,737 11,552 |
Noncontrolling interests | aa) 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 date, which is estimated with reference to the purchase price per share as of the acquisition date. The noncontrolling interests will continue to be attributed with its share of losses even if that attribution results in a deficit noncontrolling interest balance. |
Comprehensive loss | bb) Comprehensive loss Comprehensive loss is defined to include all changes in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Accumulated other comprehensive (loss)/income, as presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments. |
Segment reporting | cc) Segment reporting Based on the criteria established by ASC 280, Segment Reporting |
Business combinations | dd) Business combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations In a business combination achieved in stages, the Group re-measures re-measurement For the Company’s majority-owned subsidiaries and consolidated VIEs, noncontrolling interests are recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. 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 | ee) Recently issued accounting pronouncements In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. The Group does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures. |
Sales and marketing expenses | |
Expenses | o) 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 expenses consist primarily of costs for the promotion of corporate image and product marketing. The Group expenses all marketing and promotion costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2020, 2021 and 2022, the marketing and promotional expenses were RMB3,006.0 million, RMB5,102.9 million and RMB4,051.3 million, respectively. |
General and administrative expenses | |
Expenses | p) General and administrative expenses General and administrative expenses consist primarily of salaries and other compensation-related expenses to the Group’s general and administrative personnel, professional fees, severance cost, rental expenses and allowance for doubtful accounts. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operations and Reorganization | |
Schedule of Company's major subsidiaries and VIEs and subsidiaries of the VIEs | As of December 31, 2022, the Company’s major subsidiaries, VIEs and subsidiaries of the VIEs are as follows: Major Subsidiaries Place and Year of Incorporation Percentage of Direct or Indirect Economic Ownership Principal Activities Bilibili HK Limited Hong Kong, 2014 100 Investment holding Hode HK Limited Hong Kong, 2014 100 Investment holding Chaodian HK Limited Hong Kong, 2019 100 Investment holding Bilibili Co., Ltd. Japan, 2014 100 Business development Hode Shanghai Limited (“Hode Shanghai”) PRC, 2014 100 Technology development Shanghai Bilibili Technology Co., Ltd. PRC, 2016 100 Technology development Chaodian (Shanghai) Technology Co., Ltd . PRC, 2019 100 E-commerce and advertising Major VIEs and VIEs’ subsidiaries Place and Year of Incorporation Acquisition Percentage of Direct or Indirect Economic Interest Principal Activities Shanghai Hode Information Technology Co., Ltd. (“Hode Information Technology”) PRC, 2013 100* Mobile game operation Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) PRC, 2014 100* Video distribution and game Sharejoy Network Technology Co., Ltd. (“Sharejoy PRC, 2014 100* Game distribution Shanghai Hehehe Culture Communication Co., Ltd. (“Shanghai PRC, 2014 100* Comics distribution Shanghai Anime Tamashi Cultural Media Co., Ltd. (“Shanghai Anime Tamashi”) PRC, 2015 100* E-commerce * Hode Shanghai is the primary beneficiary the major and VIEs’ subsidiaries |
Schedule of combined financial information of the Group's VIEs included in the accompanying consolidated financial statements of the Group | The following combined financial information of the Group’s VIEs as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 included in the accompanying consolidated financial statements of the Group was as follows: December 31, December 31, RMB in thousands Cash and cash equivalents 377,114 1,590,440 Time deposits 6,997 4,186 Accounts receivable, net 524,311 619,927 Amounts due from Group companies 391,951 507,849 Amount due from related parties 101,983 119,857 Prepayments and other current assets 1,806,185 883,903 Short-term investments 927,124 272,340 Long-term investments, net 1,745,466 1,852,740 Other non-current 4,926,989 5,852,315 Total assets 10,808,120 11,703,557 Accounts payable 3,164,301 3,452,192 Salary and welfare payables 343,008 343,786 Taxes payable 128,817 165,162 Short-term loan 400,000 400,000 Deferred revenue 2,192,460 2,138,539 Accrued liabilities and other payables 1,184,523 531,188 Amounts due to the Group companies 7,214,146 12,415,760 Amounts due to related parties 117,901 27,929 Other long-term liabilities 222,719 269,623 Total liabilities 14,967,875 19,744,179 Total Bilibili Inc’s shareholders’ deficit (4,170,459 ) (8,042,238 ) Noncontrolling interests 10,704 1,616 Total shareholders’ deficit (4,159,755 ) (8,040,622 ) Total liabilities and shareholders’ deficit 10,808,120 11,703,557 For the Year Ended December 31, 2020 2021 2022 RMB in thousands Third-party revenues 9,651,207 12,867,536 14,876,639 Inter-company revenues 667,765 1,574,896 1,198,107 Total revenues 10,318,972 14,442,432 16,074,746 Third-party costs and expenses (9,931,047 ) (16,283,295 ) (18,436,865 ) Inter-company consulting and services costs and expenses (1,021,596 ) (593,272 ) (726,875 ) Other inter-company costs and expenses (201,587 ) (271,096 ) (418,667 ) Total costs and expenses (11,154,230 ) (17,147,663 ) (19,582,407 ) Gain/(Loss) from non-operations 8,368 (163,146 ) (268,584 ) Loss before income tax expenses (826,890 ) (2,868,377 ) (3,776,245 ) Income tax (27,080 ) (38,997 ) (89,660 ) Net loss (853,970 ) (2,907,374 ) (3,865,905 ) Net loss attributable to noncontrolling interests 8,501 10,367 9,088 Net loss attributable to Bilibili Inc.’s shareholders (845,469 ) (2,897,007 ) (3,856,817 ) For the Year Ended December 31, 2020 2021 2022 RMB in thousands Consulting and services charges to Group companies (1,074,899 ) (637,787 ) (610,600 ) Other operating cashflow from Group companies 586,017 1,683,907 3,863,991 Operating cashflow from/(to) third-parties 1,965,376 (1,729,079 ) (2,339,697 ) Net cash provided by/ (used in) operating activities 1,476,494 (682,959 ) 913,694 Purchase of short-term (13,973,904 ) (12,610,305 ) (7,335,115 ) Maturities of short-term 13,498,485 12,954,425 7,970,552 Placements of time deposits (25,515 ) (39,318 ) (1,270 ) Maturities of time deposits 7,896 54,319 4,444 Other investing activities (1,928,125 ) (3,265,756 ) (2,188,712 ) Net cash used in investing activities (2,421,163 ) (2,906,635 ) (1,550,101 ) Investments and loans from Group companies 990,287 3,307,226 1,884,890 Other financing activities 100,000 300,000 — Net cash provided by financing activities 1,090,287 3,607,226 1,884,890 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Schedule of movements of the allowance for doubtful accounts | The Group recorded a provision for current expected credit loss. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Beginning balance prior to ASC 326 17,696 — — Impact of adoption to ASC 326 17,900 — — Beginning balance 35,596 121,003 292,473 Provisions 99,165 189,165 130,549 Write-offs (13,758 ) (17,695 ) (117,487 ) Ending balance 121,003 292,473 305,535 |
Schedule of estimated useful lives of the intangible assets | 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, mainly vary from 1 to 10 years License rights of mobile games shorter of the licensed period or projected useful life of mobile games, mainly vary from 1 to 3 years Intellectual property and others 1 - |
Schedule of future lease payments under operating leases | Future lease payments under operating leases as of December 31, 2022 were as follows: December 31, 2022 RMB in thousands 2023 245,028 2024 233,819 2025 195,215 2026 116,212 Total future lease payments 790,274 Impact of discounting remaining lease payments (64,937 ) Total lease liabilities 725,337 |
Schedule of Lease Cost | Supplemental cash flow information related to operating leases was as follows: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Cash payments for operating leases 107,772 161,997 200,376 Right-of-use 260,867 152,481 467,765 |
Schedule of net revenues disaggregated by revenue sources | The following table presents the Group’s net revenues disaggregated by revenue sources: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Mobile games 4,803,382 5,090,926 5,021,290 Value-added services 3,845,663 6,934,886 8,715,170 Advertising 1,842,772 4,523,421 5,066,212 E-commerce 1,507,159 2,834,451 3,096,495 Total net revenues 11,998,976 19,383,684 21,899,167 |
Schedule of appropriations to general reserve funds and statutory surplus funds | The following table presents the Group’s appropriations to general reserve funds and statutory surplus funds for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Appropriations to general reserve funds and statutory surplus funds 4,421 6,737 11,552 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Telecommunications service provider | |
Concentrations and Risks | |
Schedule of concentrations and risks | The Group relied on telecommunications service providers and their affiliates for servers and bandwidth services For the Year Ended December 31, 2020 2021 2022 RMB in thousands Total number of telecommunications service providers 116 126 153 Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure 3 3 3 Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers 55 % 55 % 45 % |
Mobile games | |
Concentrations and Risks | |
Schedule of concentrations and risks | For the Year Ended December 31, 2020 2021 2022 Mobile game 1 11 % N/A N/A |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Current Assets | |
Summary of prepayments and other current assets | December 31, December 31, RMB in thousands Prepayments for revenue sharing cost* 1,117,431 559,178 Inventories, net 455,767 437,451 Prepayments for sales tax 523,282 435,373 Prepayments of marketing and other operational expenses 181,764 125,685 Interest income receivable 10,927 79,641 Prepayments to inventory suppliers 94,746 76,598 Prepayments for content cost 73,496 62,564 Deposits 106,555 31,461 Loans to investees or ongoing investments 68,681 25,458 Prepayments/ receivables relating to jointly invested content 36,246 22,901 Others 138,153 94,263 Total 2,807,048 1,950,573 * 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 sheets 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, 2022 | |
Short-term Investments [Abstract] | |
Summary of short-term investments | The following is a summary of short-term investments: December 31, 2021 December 31, 2022 RMB in thousands Financial products 13,583,580 3,580,792 Investments in publicly traded companies 1,426,946 1,042,660 Money market funds 50,196 — Total 15,060,722 4,623,452 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and equipment, net | The following is a summary of property and equipment, net: December 31, 2021 December 31, 2022 RMB in thousands Leasehold improvements 221,280 282,007 Servers and computers 2,277,947 2,830,434 Others 59,871 64,595 Total 2,559,098 3,177,036 Less: accumulated depreciation (1,208,842 ) (1,949,873 ) Net book value 1,350,256 1,227,163 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of intangible assets, net | The following is a summary of intangible assets, net: As of December 31, 2021 Gross Accumulated Net RMB in thousands Licensed copyrights of content 5,567,213 (3,245,622 ) 2,321,591 License rights of mobile games 455,687 (229,559 ) 226,128 Intellectual property and others 1,674,232 (386,351 ) 1,287,881 Total 7,697,132 (3,861,532 ) 3,835,600 As of December 31, 2022 Gross Accumulated Net RMB in thousands Licensed copyrights of content 7,131,626 (4,622,992 ) 2,508,634 License rights of mobile games 427,726 (300,659 ) 127,067 Intellectual property and others 2,337,508 (646,419 ) 1,691,089 Total 9,896,860 (5,570,070 ) 4,326,790 |
Schedule of intangible assets amortization expense for future years | As of December 31, 2022, the licensed copyrights of content have weighted-average useful lives of 4.04 years. The intangible assets amortization expense for future years is expected to be as follows: Intangible assets amortization expense RMB in thousands 2023 1,443,225 2024 901,334 2025 533,749 2026 371,679 2027 242,666 Thereafter 834,137 Total expected amortization expense 4,326,790 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination, Goodwill [Abstract] | |
Schedule of Goodwill | December 31, December 31, RMB in thousands Beginning balance 1,295,786 2,338,303 Additions (Note 25) 1,042,517 386,827 Ending balance 2,338,303 2,725,130 |
Long-term Investments, Net (Tab
Long-term Investments, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |
Summary of equity method investments | December 31, December 31, RMB in thousands Equity investments accounted for using the measurement alternative 3,344,465 2,844,630 Equity investments accounted for using the equity method 1,235,289 1,923,144 Investments accounted for at fair value 922,770 883,244 Total 5,502,524 5,651,018 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Taxation | |
Schedule of composition of income tax expenses | The following table presents the composition of income tax expenses for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Current income tax expenses 48,081 102,715 122,451 Withholding income tax expenses 18,754 14,066 18,189 Deferred tax benefits (13,466 ) (21,492 ) (36,495 ) Total 53,369 95,289 104,145 |
Schedule of reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | 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, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 % % % Statutory income tax rate 25.00 25.00 25.00 Permanent differences 0.60 (1.19 ) 6.74 Tax rate difference from statutory rate in other jurisdictions* (3.90 ) (1.43 ) (3.19 ) Tax effect of preferential tax treatments (8.29 ) (7.94 ) (8.91 ) Withholding tax (0.63 ) (0.21 ) (0.25 ) Change in valuation allowance (14.56 ) (15.65 ) (20.79 ) Effective income tax rate (1.78 ) (1.42 ) (1.40 ) * It is primarily due to the tax effect of the Company as a tax-exempt |
Schedule of net operating tax loss carry forwards | As of December 31, 2022, certain entities of the Group had net operating tax loss carry forwards as follows: RMB in Loss expiring in 2023 88,466 Loss expiring in 2024 189,744 Loss expiring in 2025 269,421 Loss expiring in 2026 952,055 Loss expiring in 2027 and thereafter 14,406,710 Total 15,906,396 |
Schedule of tax impact of significant temporary differences that give rise to the 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, 2021 and 2022: December 31, December 31, RMB in thousands Deferred tax assets: Deferred revenue 143,688 473,200 Accrued expenses and other payables 150,092 112,780 Advertising expenses in excess of deduction limit 130,720 284,205 Net operating tax loss carry forwards 1,662,884 2,684,042 Others 71,048 146,831 Total deferred tax assets 2,158,432 3,701,058 Less: valuation allowance (2,122,077 ) (3,657,467 ) Net deferred tax assets 36,355 43,591 Deferred tax liabilities Acquired intangible assets (Note 25) (82,191 ) (110,923 ) Total deferred tax liabilities (82,191 ) (110,923 ) |
Schedule of movement of the aggregate valuation allowances for deferred tax assets | 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 2020 (537,359 ) 105 (484,445 ) 44,366 (977,333 ) 2021 (977,333 ) — (1,154,342 ) 9,598 (2,122,077 ) 2022 (2,122,077 ) — (1,543,301 ) 7,911 (3,657,467 ) |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Payable | |
Summary of taxes payable | The following is a summary of taxes payable as of December 31, 2021 and 2022: December 31, 2021 December 31, 2022 RMB in thousands EIT payable 69,773 109,864 VAT payable 52,614 58,624 Withholding income tax payable 29,242 55,854 Withholding individual income taxes for employees 44,968 46,739 Others 7,173 45,163 Total 203,770 316,244 |
Short-term Loan and Current P_2
Short-term Loan and Current Portion of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term loan and current portion of long-term debt | Balance at December 31, 2021, Balance at December 31, 2022 Interest Rate Maturity Date Amount Interest Rate Maturity Date Amount RMB in thousands RMB in thousands Unsecured bank loans 3.60%~3.70 % Within 12 months 943,658 3.10%~3.70 % Within 12 months 1,242,882 Unsecured borrowing 3.95 % Within 12 months 288,448 3.79 % Within 12 months 240,871 2027 Notes (Note 14) N/A N/A — 1.25 % Within 12 months 5,137,633 Total 1,232,106 6,621,386 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities and Other Payables | |
Summary of accrued liabilities and other payables | The following is a summary of accrued liabilities and other payables as of December 31, 2021 and 2022: December 31, December 31, RMB in thousands Accrued marketing expenses 1,321,776 777,572 Leasing 206,758 238,687 Payables to producers and licensors 139,951 159,950 Consideration payable for acquisitions and investments 526,453 110,518 Professional fees 64,510 94,342 Deposits 40,445 48,637 Interest payable 26,469 17,731 Advances from/payables to third parties 14,386 6,420 Other staff related cost 5,325 5,372 Others 70,882 75,733 Total 2,416,955 1,534,962 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Summary of the Company's unsecured senior notes | The following table provides a summary of the Company’s non-current portion of unsecured senior notes as of December 31, 2021 and December 31, 2022: December 31, 2021 December 31, 2022 Effective interest Amounts Amounts rate RMB in thousands April 2026 Notes 2,697,698 2,956,815 1.74 % 2027 Notes 5,031,312 — 1.52 % December 2026 Notes 10,055,082 5,726,335 0.80 % Carrying value 17,784,092 8,683,150 Unamortized discount and debt issuance costs 255,033 99,698 Total principal amounts of unsecured senior notes 18,039,125 8,782,848 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Contributions to medical and pension schemes 195,655 695,310 934,876 Other employee benefits 40,216 65,990 99,303 Total 235,871 761,300 1,034,179 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of service-based RSUs activities | The following table presents a summary of the Group’s service-based RSUs activities for the year ended December 31, 2022: Employees Senior Consultants Total Weighted (In thousands) (In thousands) (In thousands) (In thousands) US$ Outstanding at January 1, 2022 — — — — — Granted 1,932 — 35 1,967 24.59 Vested — — — — — Forfeited — — — — — Unvested at December 31, 2022 1,932 — 35 1,967 24.59 |
Schedule of binomial option-pricing model | 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, 2020 2021 2022 Expected volatility 50.1%-55.0 % 53.0%-53.5 % 57.6%-58.0 % Weighted average volatility 51.9 % 53.2 % 57.9 % Expected dividends — — — Risk-free rate 0.4%-0.7 % 0.9%-1.4 % 2.7%-3.6 % Contractual term (in years) 6-7 6-7 6-7 |
Schedule of share options activities | The following table presents a summary of the Group’s share options activities for the years ended December 31, 2020, 2021 and 2022: Employees Senior Consultants Total Weighted Weighted Aggregate (In thousands) (In thousands) (In thousands) (In thousands) US$ (In years) (RMB in Outstanding at January 1, 2020 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Granted 6,966 8,700 50 15,716 2.9007 Exercised (2,784 ) (1,643 ) (65 ) (4,492 ) 0.0001 Forfeited (1,101 ) — — (1,101 ) 0.4234 Outstanding at December 31, 2020 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Outstanding at January 1, 2021 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Granted 3,927 — 21 3,948 0.0001 Exercised (2,094 ) (1,101 ) (68 ) (3,263 ) 0.0001 Forfeited (472 ) — — (472 ) 0.0001 Outstanding at December 31, 2021 12,716 9,611 183 22,510 2.0010 5.01 6,372,503 Outstanding at January 1, 2022 12,716 9,611 183 22,510 2.0010 5.01 6,372,503 Granted 5,661 6 162 5,829 0.0036 Exercised (2,575 ) (1,204 ) (150 ) (3,929 ) 0.0001 Forfeited (2,500 ) — — (2,500 ) 0.2331 Outstanding at December 31, 2022 13,302 8,413 195 21,910 2.0283 4.70 3,305,336 Exercisable at December 31, 2022 2,113 2,580 22 4,715 2.8747 4.00 778,043 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net Loss Per Share | |
Schedule of computation of basic and diluted net loss per share | The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 RMB in thousands, except for share and per share data Numerator: Net loss (3,054,017 ) (6,808,739 ) (7,507,653 ) Accretion to redeemable noncontrolling interests (4,292 ) — — Net loss attributable to noncontrolling interests 46,605 19,511 10,640 Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation (3,011,704 ) (6,789,228 ) (7,497,013 ) Denominator: Weighted average number of ordinary shares outstanding, basic 345,816,023 379,898,121 394,863,584 Weighted average number of ordinary shares outstanding, diluted 345,816,023 379,898,121 394,863,584 Net loss per share, basic (8.71 ) (17.87 ) (18.99 ) Net loss per share, diluted (8.71 ) (17.87 ) (18.99 ) |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions and Balances | |
Schedule of significant related party transactions | The Group entered into the following significant related party transactions for the periods presented: For the Year Ended December 31, 2020 2021 2022 RMB in thousands Purchases of goods and services 35,131 117,116 206,931 (Acquire of)/Transfer of long-term investments 1 (110,039 ) (40,837 ) 275,000 Purchase of noncontrolling interests of Chaodian Inc. (“Chaodian”) 2 257,288 — — Capital contribution/Loans to an entity 3 — 2,785,314 — Investment income and interest income 2,238 14,366 78,827 Sales of goods and services 4,915 9,136 13,953 1. In July 2020, the Company acquired certain equity interests of two investments from one investment fund, of which the Company is its limited partner. The consideration was RMB110.0 million. In 2022, the Company transferred several equity investments of the Group to another investment fund, of which the Company is its limited partner. The consideration was RMB275.0 million . non-trade 2. In September 2020, the Company acquired the rest equity interests of Chaodian from certain noncontrolling shareholders, which included some related parties of the Company. The consideration was determined by referenced to a third-party valuer’s valuation and the considerations were settled in 2020. 3. The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. The balance as of December 31, 2021 and 2022 represents interest-bearing loans and interest expenses related to the Entity, which are non-trade |
Schedule of significant related party balances | The Group had the following significant related party balances as of December 31, 2021 and 2022, respectively: December 31, 2021 December 31, 2022 RMB in thousands Amount due from related parties Due from investment funds 1 48,135 103,689 Due from the Entity 3 1,709,689 1,308,652 Due from other investees 283,492 182,579 Total 2,041,316 1,594,920 Amount due to related parties 4 216,434 108,307 1. In July 2020, the Company acquired certain equity interests of two investments from one investment fund, of which the Company is its limited partner. The consideration was RMB110.0 million. In 2022, the Company transferred several equity investments of the Group to another investment fund, of which the Company is its limited partner. The consideration was RMB275.0 million . non-trade 3. The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. The balance as of December 31, 2021 and 2022 represents interest-bearing loans and interest expenses related to the Entity, which are non-trade 4. The balances as of December 31, 2021 and 2022 mainly represent considerations related to long-term investments, which are non-trade in nature. |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Summary of Condensed statements of balance sheets | Condensed balance sheets December 31, 2021 December 31, 2022 RMB in thousands Cash and cash equivalents 1,748,896 270,138 Time deposits 7,625,337 4,067,326 Amounts due from Group companies 23,306,176 22,313,954 Prepayments and other current assets 11,773 61,631 Short-term investments 13,107,720 1,091,044 Long-term investments, net 1,448,100 1,157,990 Investment in subsidiaries and net asset s — 226,249 Total assets 47,248,002 29,188,332 Short-term loan and current portion of long-term debt — 5,137,633 Deferred revenue 40,167 32,513 Accrued liabilities and other payables 126,512 97,208 Other long-term liabilities 17,784,092 8,683,150 Deficit in subsidiaries an d net loss of 7,593,564 — Total liabilities 25,544,335 13,950,504 Total Bilibili Inc’s shareholders’ equity 21,703,667 15,237,828 Total shareholders’ equity 21,703,667 15,237,828 Total liabilities and shareholders’ equity 47,248,002 29,188,332 |
Summary of Condensed statements of comprehensive loss | Condensed statements of comprehensive loss and cash flows For the Year Ended December 31, 2020 2021 2022 RMB in thousands Total costs and expenses (44,090 ) (12,405 ) (30,558 ) Net Loss from subsidiaries and net loss of VIEs and VIEs’ subsidiaries (2,940,906 ) (6,713,764 ) (7,685,211 ) (Loss)/Gain from non-operations (26,708 ) (63,059 ) 218,756 Loss before income tax expenses (3,011,704 ) (6,789,228 ) (7,497,013 ) Net loss (3,011,704 ) (6,789,228 ) (7,497,013 ) |
Summary of Condensed statements of cash flows | For the Year Ended December 31, 2020 2021 2022 RMB in thousands Net cash used in operating activities (113,574 ) (104,672 ) (650,630 ) Purchase of short-term investments (455,347 ) (48,781,106 ) (33,683,941 ) Maturities of short-term investments 465,726 36,744,305 45,951,288 Placements of time deposits (9,604,228 ) (10,658,126 ) (4,878,180 ) Maturities of time deposits 4,925,241 7,600,828 9,133,225 Investments in and loans to subsidiaries, VIEs and VIEs’ subsidiaries (5,102,250 ) (11,168,671 ) (13,131,173 ) Other investing activities (600,067 ) (1,153,850 ) 283,028 Net cash (used in)/provided by investing activities (10,370,925 ) (27,416,620 ) 3,674,247 Proceeds from exercise of employees’ share options 3 3 4 Proceeds from issuance of ordinary shares, net of issuance costs of US$563 and 2,817,458 19,288,423 — Repurchase of convertible senior notes — — (4,201,506 ) Proceeds from issuance of convertible senior notes, net of issuance costs of US$13,857, US$23,402 and nil, respectively 5,594,779 10,085,520 — Repurchase of shares — — (347,581 ) Net cash provided by/(used in) financing activities 8,412,240 29,373,946 (4,549,083 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Anime Business | |
Acquisitions | |
Schedule of consideration of acquisitions | The consideration of acquisition of Anime Business was allocated based on their fair value of the assets acquired and the liabilities Amount Amortization RMB in thousands Net assets acquired 189,763 Intangible assets —Brand 85,000 8 years —Vendor relationship 75,000 10 years —Non-compete 54,000 6 years Goodwill 283,402 Total 687,165 Total purchase price comprised of: Amount RMB in thousands Cash consideration 369,124 Share consideration 243,203 Fair value of previously held equity interests 74,838 Total 687,165 |
Comics Business | |
Acquisitions | |
Schedule of consideration of acquisitions | The consideration of acquisition of Comics Business was allocated based on their fair Amount Amortization RMB in thousands Net assets acquired 48,764 Intangible assets —Brand 23,000 10 years —User base 11,000 3 years —Copyrights 269,000 8 years —Technology 4,000 3 years —Non-compete 5,000 2 years Deferred tax liabilities (42,133 ) Goodwill 281,369 Total 600,000 Total purchase price comprised of: Amount RMB in thousands Cash consideration 600,000 |
Game Business | |
Acquisitions | |
Schedule of consideration of acquisitions | The consideration of acquisition of Game Business was allocated based Amount Amortization RMB in Net assets acquired 333,830 Intangible assets —Non-compete 111,000 6 years —Others 50,965 5 years Deferred tax liabilities (40,491 ) Goodwill 344,696 Total 800,000 Total purchase price comprised of: Amount RMB in thousands Cash consideration 800,000 |
Other acquisitions | |
Acquisitions | |
Schedule of consideration of acquisitions | The Group’s other acquisitions are summarized in the following table: For the Year Ended December 31, Amortization 2020 2021 2022 Amount RMB in thousands Net assets acquired 18,495 28,320 85,369 Intangible assets —Brand — 66,000 — 5 years —Customer relationship — 83,000 — 5 years —Non-compete — 28,000 9,000 6 years —Others 160,636 71,100 61,000 1 to 10 years Deferred tax liabilities (49,140 ) — (17,500 ) Goodwill 283,760 477,746 42,131 Total 413,751 754,166 180,000 Total purchase price comprised of: For the Year Ended December 31, 2020 2021 2022 Amount RMB in thousands Cash consideration 295,323 244,949 150,000 Share consideration 118,428 391,244 — Fair value of previously held equity interests — 117,973 30,000 Total 413,751 754,166 180,000 |
Operations - Initial public off
Operations - Initial public offering ("IPO") and followed offerings (Details) ¥ in Thousands, $ in Billions | 1 Months Ended | 12 Months Ended | |||||
Oct. 03, 2022 | Mar. 31, 2021 CNY (¥) shares | Mar. 31, 2021 HKD ($) shares | Apr. 30, 2020 shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 HKD ($) | Dec. 31, 2020 CNY (¥) | |
Operations and Reorganization [Line Items] | |||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ | ¥ 19,288,423 | ¥ 2,817,458 | |||||
Hong Kong Stock Exchange [Member] | |||||||
Operations and Reorganization [Line Items] | |||||||
Date of conversion of the company from the secondary listing series to primary listing | Oct. 03, 2022 | ||||||
Class Z Ordinary Shares | |||||||
Operations and Reorganization [Line Items] | |||||||
Ordinary shares, issued (in shares) | 28,750,000 | 28,750,000 | 17,310,696 | ||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 19,300,000 | $ 22.9 | |||||
Class Z Ordinary Shares | Over-allotment option [Member] | |||||||
Operations and Reorganization [Line Items] | |||||||
Ordinary shares, issued (in shares) | 3,750,000 | 3,750,000 | |||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 19,300,000 | $ 22.9 |
Operations - The Group (Details
Operations - The Group (Details) | 12 Months Ended | |
Dec. 31, 2022 | ||
Bilibili HK Limited | Major Subsidiaries [Member] | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | Hong Kong, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100% | |
Principal Activities | Investment holding | |
Hode HK Limited | Major Subsidiaries [Member] | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | Hong Kong, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100% | |
Principal Activities | Investment holding | |
Chaodian HK Limited | Major Subsidiaries [Member] | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | Hong Kong, 2019 | |
Percentage of Direct or Indirect Economic Ownership | 100% | |
Principal Activities | Investment holding | |
Bilibili Co., Ltd. | Major Subsidiaries [Member] | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | Japan, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100% | |
Principal Activities | Business development | |
Hode Shanghai Limited ("Hode Shanghai") | Major Subsidiaries [Member] | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2014 | |
Percentage of Direct or Indirect Economic Ownership | 100% | |
Principal Activities | Technology development | |
Shanghai Bilibili Technology Co., Ltd | Major Subsidiaries [Member] | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2016 | |
Percentage of Direct or Indirect Economic Ownership | 100% | |
Principal Activities | Technology development | |
Chaodian (Shanghai) Technology Co., Ltd. | Major Subsidiaries [Member] | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2019 | |
Percentage of Direct or Indirect Economic Ownership | 100% | |
Principal Activities | E-commerce and advertising | |
Shanghai Hode Information Technology Co., Ltd. ("Hode Information Technology") | Major VIEs and VIEs' subsidiaries | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2013 | |
Percentage of Direct or Indirect Economic Interest | 100% | [1] |
Principal Activities | Mobile game operation | |
Shanghai Kuanyu Digital Technology Co., Ltd. ("Shanghai Kuanyu"). | Major VIEs and VIEs' subsidiaries | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2014 | |
Percentage of Direct or Indirect Economic Interest | 100% | [1] |
Principal Activities | Video distribution and game distribution | |
Sharejoy Network Technology Co., Ltd. ("Sharejoy Network") | Major VIEs and VIEs' subsidiaries | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2014 | |
Percentage of Direct or Indirect Economic Interest | 100% | [1] |
Principal Activities | Game distribution | |
Shanghai Hehehe Culture Communication Co., Ltd. ("Shanghai Hehehe") | Major VIEs and VIEs' subsidiaries | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2014 | |
Percentage of Direct or Indirect Economic Interest | 100% | [1] |
Principal Activities | Comics distribution | |
Shanghai Anime Tamashi Cultural Media Co., Ltd. ("Shanghai Anime Tamashi") | Major VIEs and VIEs' subsidiaries | ||
Company's major subsidiaries and VIEs | ||
Place and Year of Incorporation | PRC, 2015 | |
Percentage of Direct or Indirect Economic Interest | 100% | [1] |
Principal Activities | E-commerce | |
[1]Hode Shanghai had 100% of beneficial interests in these consolidated VIEs. |
Operations - Contractual agree
Operations - Contractual agreements with major VIEs (Details) - VIEs - Exclusive Technology Consulting and Services Agreements - The Company or its relevant subsidiaries | Dec. 22, 2022 |
Contractual agreements with major VIEs | |
Term of agreement | 10 years |
Termination notice before the term ends | 90 days |
Operations - Combined financial
Operations - Combined financial information of the Group's VIEs and Others (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) entity | Dec. 31, 2022 USD ($) entity | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2019 CNY (¥) | |
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | ¥ 10,172,584 | ¥ 7,523,108 | ¥ 4,678,109 | $ 1,474,886 | ||
Time deposits | 4,767,972 | 7,632,334 | 691,291 | |||
Accounts receivable, net | 1,328,584 | 1,382,328 | 192,627 | |||
Prepayments and other current assets | 1,950,573 | 2,807,048 | 282,806 | |||
Short-term investments | 4,623,452 | 15,060,722 | 670,338 | |||
Long-term investments, net | 5,651,018 | 5,502,524 | 819,321 | |||
Other non-current assets | 1,474,368 | 1,459,485 | 213,762 | |||
Total assets | 41,830,570 | 52,053,151 | 6,064,863 | |||
Accounts payable | 4,291,656 | 4,360,906 | 622,232 | |||
Salary and welfare payables | 1,401,526 | 995,451 | 203,202 | |||
Taxes payable | 316,244 | 203,770 | 45,851 | |||
Deferred revenue | 2,819,323 | 2,645,389 | 408,763 | |||
Accrued liabilities and other payables | 1,534,962 | 2,416,955 | 222,548 | |||
Other long-term liabilities | 814,429 | 481,982 | 118,082 | |||
Total liabilities | 26,590,983 | 30,337,085 | 3,855,330 | |||
Total Bilibili Inc's shareholders' deficit | 15,237,828 | 21,703,667 | 2,209,278 | |||
Noncontrolling interests | 1,759 | 12,399 | 255 | |||
Total shareholders' equity | 15,239,587 | 21,716,066 | 7,782,204 | 2,209,533 | ¥ 7,636,460 | |
Total liabilities and shareholders' equity | 41,830,570 | 52,053,151 | $ 6,064,863 | |||
Total revenues | 21,899,167 | $ 3,175,081 | 19,383,684 | 11,998,976 | ||
Gain/(Loss) from non-operations | (8,357,944) | (1,211,788) | (6,429,074) | (3,140,963) | ||
Loss before income tax expenses | (7,403,508) | (1,073,407) | (6,713,450) | (3,000,648) | ||
Income tax | (104,145) | (15,100) | (95,289) | (53,369) | ||
Net loss | (7,507,653) | (1,088,507) | (6,808,739) | (3,054,017) | ||
Net loss attributable to noncontrolling interests | 10,640 | 1,542 | 19,511 | 46,605 | ||
Net loss attributable to the Bilibili Inc.'s shareholders | (7,497,013) | (1,086,965) | (6,789,228) | (3,011,704) | ||
Net cash provided by /(used in) operating activities | (3,911,400) | (567,097) | (2,647,008) | 753,103 | ||
Purchase of short-term investments | (70,578,711) | (10,232,951) | (71,748,847) | (26,731,176) | ||
Maturities of short-term investments | 81,698,532 | 11,845,174 | 60,524,888 | 24,921,538 | ||
Placements of time deposits | (10,245,026) | (1,485,389) | (10,697,444) | (10,907,296) | ||
Maturities of time deposits | 13,909,967 | 2,016,756 | 7,655,147 | 7,670,373 | ||
Net cash (used in)/provided by investing activities | 10,609,218 | 1,538,192 | (24,578,111) | (8,906,821) | ||
Net cash provided by/(used in) financing activities | (4,354,919) | $ (631,404) | 30,389,152 | 8,335,419 | ||
Assets of VIE's used to settle obligations of respective VIE's registered capital | 494,100 | 494,100 | ||||
Assets of VIE's used to settle obligations of respective VIE's non-distributable statutory reserves | ¥ 24,100 | 22,600 | ||||
Number of VIE having variable interest but not primary beneficiary | entity | 0 | 0 | ||||
Consolidated VIEs without recourse to the primary beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | ¥ 1,590,440 | 377,114 | ||||
Time deposits | 4,186 | 6,997 | ||||
Accounts receivable, net | 619,927 | 524,311 | ||||
Amounts due from Group companies | 507,849 | 391,951 | ||||
Amount due from related parties | 119,857 | 101,983 | ||||
Prepayments and other current assets | 883,903 | 1,806,185 | ||||
Short-term investments | 272,340 | 927,124 | ||||
Long-term investments, net | 1,852,740 | 1,745,466 | ||||
Other non-current assets | 5,852,315 | 4,926,989 | ||||
Total assets | 11,703,557 | 10,808,120 | ||||
Accounts payable | 3,452,192 | 3,164,301 | ||||
Salary and welfare payables | 343,786 | 343,008 | ||||
Taxes payable | 165,162 | 128,817 | ||||
Short-term loan | 400,000 | 400,000 | ||||
Deferred revenue | 2,138,539 | 2,192,460 | ||||
Accrued liabilities and other payables | 531,188 | 1,184,523 | ||||
Amounts due to the Group companies | 12,415,760 | 7,214,146 | ||||
Amounts due to related parties | 27,929 | 117,901 | ||||
Other long-term liabilities | 269,623 | 222,719 | ||||
Total liabilities | 19,744,179 | 14,967,875 | ||||
Total Bilibili Inc's shareholders' deficit | (8,042,238) | (4,170,459) | ||||
Noncontrolling interests | 1,616 | 10,704 | ||||
Total shareholders' equity | (8,040,622) | (4,159,755) | ||||
Total liabilities and shareholders' equity | 11,703,557 | 10,808,120 | ||||
Total revenues | 16,074,746 | 14,442,432 | 10,318,972 | |||
Total costs and expenses | (19,582,407) | (17,147,663) | (11,154,230) | |||
Gain/(Loss) from non-operations | (268,584) | (163,146) | 8,368 | |||
Loss before income tax expenses | (3,776,245) | (2,868,377) | (826,890) | |||
Income tax | (89,660) | (38,997) | (27,080) | |||
Net loss | (3,865,905) | (2,907,374) | (853,970) | |||
Net loss attributable to noncontrolling interests | 9,088 | 10,367 | 8,501 | |||
Net loss attributable to the Bilibili Inc.'s shareholders | (3,856,817) | (2,897,007) | (845,469) | |||
Net cash provided by /(used in) operating activities | 913,694 | (682,959) | 1,476,494 | |||
Purchase of short-term investments | (7,335,115) | (12,610,305) | (13,973,904) | |||
Maturities of short-term investments | 7,970,552 | 12,954,425 | 13,498,485 | |||
Placements of time deposits | (1,270) | (39,318) | (25,515) | |||
Maturities of time deposits | 4,444 | 54,319 | 7,896 | |||
Other investing activities | (2,188,712) | (3,265,756) | (1,928,125) | |||
Net cash (used in)/provided by investing activities | (1,550,101) | (2,906,635) | (2,421,163) | |||
Other financing activities | 300,000 | 100,000 | ||||
Net cash provided by/(used in) financing activities | 1,884,890 | 3,607,226 | 1,090,287 | |||
Consolidated VIEs without recourse to the primary beneficiary | Third-party | ||||||
Variable Interest Entity [Line Items] | ||||||
Total revenues | 14,876,639 | 12,867,536 | 9,651,207 | |||
Total costs and expenses | (18,436,865) | (16,283,295) | (9,931,047) | |||
Net cash provided by /(used in) operating activities | (2,339,697) | (1,729,079) | 1,965,376 | |||
Consolidated VIEs without recourse to the primary beneficiary | Inter-company | ||||||
Variable Interest Entity [Line Items] | ||||||
Total revenues | 1,198,107 | 1,574,896 | 667,765 | |||
Consolidated VIEs without recourse to the primary beneficiary | Inter-company | Consulting and services charges | ||||||
Variable Interest Entity [Line Items] | ||||||
Total costs and expenses | (726,875) | (593,272) | (1,021,596) | |||
Consolidated VIEs without recourse to the primary beneficiary | Other inter-company | ||||||
Variable Interest Entity [Line Items] | ||||||
Total costs and expenses | (418,667) | (271,096) | (201,587) | |||
Consolidated VIEs without recourse to the primary beneficiary | Group companies | ||||||
Variable Interest Entity [Line Items] | ||||||
Net cash provided by /(used in) operating activities | 3,863,991 | 1,683,907 | 586,017 | |||
Investments and loans from Group companies | 1,884,890 | 3,307,226 | 990,287 | |||
Consolidated VIEs without recourse to the primary beneficiary | Group companies | Consulting and services charges | ||||||
Variable Interest Entity [Line Items] | ||||||
Net cash provided by /(used in) operating activities | ¥ (610,600) | ¥ (637,787) | ¥ (1,074,899) |
Operations - Liquidity (Details
Operations - Liquidity (Details) ¥ in Thousands, $ in Thousands, $ in Billions | 1 Months Ended | 12 Months Ended | ||||||||||||
Nov. 30, 2021 CNY (¥) | Nov. 30, 2021 USD ($) | Mar. 31, 2021 shares | Jun. 30, 2020 CNY (¥) | Jun. 30, 2020 USD ($) | Apr. 30, 2020 shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 HKD ($) | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2022 USD ($) | |
Issuance of preferred shares | ||||||||||||||
Net losses | ¥ (7,507,653) | $ (1,088,507) | ¥ (6,808,739) | ¥ (3,054,017) | ||||||||||
Net cash (used in)/provided by operating activities | (3,911,400) | $ (567,097) | (2,647,008) | 753,103 | ||||||||||
Accumulated deficit | ¥ (21,479,900) | (13,971,304) | $ (3,114,288) | |||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ | 19,288,423 | 2,817,458 | ||||||||||||
Convertible senior notes (the "2027 Notes") due 2027 [Member] | ||||||||||||||
Issuance of preferred shares | ||||||||||||||
Net proceeds from the offering, after deducting offerings expenses | 2,817,500 | $ 399,400 | ||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 5,594,800 | $ 786,100 | ¥ 5,594,800 | $ 786,100 | ||||||||||
Convertible senior notes (the "December 2026 Notes") due December 2026 [Member] | ||||||||||||||
Issuance of preferred shares | ||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 10,100,000 | $ 1,576,600 | 10,100,000 | $ 1,576,600 | ||||||||||
Class Z Ordinary Shares | ||||||||||||||
Issuance of preferred shares | ||||||||||||||
Ordinary shares, issued (in shares) | 28,750,000 | 17,310,696 | ||||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 19,300,000 | $ 22.9 | ||||||||||||
Class Z Ordinary Shares | Convertible senior notes (the "2027 Notes") due 2027 [Member] | ||||||||||||||
Issuance of preferred shares | ||||||||||||||
Ordinary shares, issued (in shares) | 17,310,696 | 17,310,696 |
Significant Accounting Polici_4
Significant Accounting Policies - Convenience Translation, Cash & cash equivalents, restricted cash and time deposits (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | |
Cash and cash equivalents and time deposits | |||||
Convenience translation rate (USD to RMB) | 6.8972 | 6.8972 | |||
Cash and cash equivalents and time deposits | |||||
Cash and cash equivalents | ¥ 10,172,584,000 | ¥ 7,523,108,000 | $ 1,474,886 | ¥ 4,678,109,000 | |
Time deposits | 4,767,972,000 | 7,632,334,000 | 691,291 | ||
Restricted cash | 14,800,000 | 0 | |||
PRC Subsidiaries and Variable Interest Entities | |||||
Cash and cash equivalents and time deposits | |||||
Cash and cash equivalents | ¥ 4,429,700,000 | ¥ 1,554,500,000 | |||
Cash and cash equivalents held by PRC subsidiaries and VIEs (as a percent) | 43% | 21% | |||
Cash held in accounts managed by online payment platforms | |||||
Cash and cash equivalents and time deposits | |||||
Cash and cash equivalents | ¥ 51,400,000 | ¥ 50,700,000 | |||
Denominated in US dollars | |||||
Cash and cash equivalents and time deposits | |||||
Cash and cash equivalents | 6,036,100,000 | 6,375,100,000 | 866,700 | $ 999,900 | |
Time deposits | ¥ 4,768,000,000 | ¥ 7,632,300,000 | $ 684,600 | $ 1,197,100 |
Significant Accounting Polici_5
Significant Accounting Policies - Receivables, net (Details) ¥ in Millions | Dec. 31, 2022 CNY (¥) |
Accounting Standards Update 2016-13 [Member] | |
Accumulated deficit | ¥ 17.9 |
Significant Accounting Polici_6
Significant Accounting Policies - Movements of the allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at January 1 | ¥ 292,473 | ¥ 121,003 | ¥ 35,596 | |
Provisions | 130,549 | $ 18,928 | 189,165 | 99,165 |
Write-offs | (117,487) | (17,695) | (13,758) | |
Balance at December 31 | ¥ 305,535 | ¥ 292,473 | 121,003 | |
Accounting Standards Update 2016-13 [Member] | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at January 1 | 17,900 | |||
Previously Reported [Member] | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at January 1 | ¥ 17,696 |
Significant Accounting Polici_7
Significant Accounting Policies - Intangible assets, net (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | Licensed copyrights of content | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Minimum | License rights of mobile games | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Minimum | Intellectual property and others | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Maximum | Licensed copyrights of content | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Maximum | License rights of mobile games | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Maximum | Intellectual property and others | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Significant Accounting Polici_8
Significant Accounting Policies - Goodwill (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies | |||
Goodwill impairment charges | ¥ 0 | ¥ 0 | ¥ 0 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies | |||
Marketing and promotional expenses | ¥ 4,051.3 | ¥ 5,102.9 | ¥ 3,006 |
Significant Accounting Polic_10
Significant Accounting Policies - Leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies | |||
Lease expire | Dec. 31, 2026 | ||
Weighted average term | 3 years 3 months 18 days | 2 years 8 months 12 days | |
Discount rate | 4.75% | 4.75% | |
Operating Lease, Cost | ¥ 275,100 | ¥ 177,400 | ¥ 107,200 |
Operating Leases [Abstract] | |||
2023 | 245,028 | ||
2024 | 233,819 | ||
2025 | 195,215 | ||
2026 | 116,212 | ||
Total future lease payments | 790,274 | ||
Impact of discounting remaining lease payments | (64,937) | ||
Total lease liabilities | ¥ 725,337 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Liabilities |
Significant Accounting Polic_11
Significant Accounting Policies - Schedule of Lease Cost (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flow, Operating Activities, Lessee [Abstract] | |||
Cash payments for operating leases | ¥ 200,376 | ¥ 161,997 | ¥ 107,772 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 467,765 | ¥ 152,481 | ¥ 260,867 |
Significant Accounting Polic_12
Significant Accounting Policies - Revenue Recognition (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Significant Accounting Policies | ||||
Deferred revenue, revenue recognized | ¥ 2,583,600 | ¥ 1,993,700 | ¥ 1,238,800 | |
Practical expedient related to performance obligations | true | true | ||
Total net revenues | ¥ 21,899,167 | $ 3,175,081 | 19,383,684 | 11,998,976 |
Mobile games | ||||
Significant Accounting Policies | ||||
Total net revenues | 5,021,290 | 5,090,926 | 4,803,382 | |
Value-added services | ||||
Significant Accounting Policies | ||||
Total net revenues | 8,715,170 | 6,934,886 | 3,845,663 | |
Advertising | ||||
Significant Accounting Policies | ||||
Total net revenues | 5,066,212 | 4,523,421 | 1,842,772 | |
E-commerce and others | ||||
Significant Accounting Policies | ||||
Total net revenues | ¥ 3,096,495 | ¥ 2,834,451 | ¥ 1,507,159 | |
Maximum | Live broadcasting and other VAS | ||||
Significant Accounting Policies | ||||
Period recognized for time-based virtual item | 1 year | 1 year |
Significant Accounting Polic_13
Significant Accounting Policies - Statutory reserves (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies | |||
Appropriations to general reserve funds and statutory surplus funds | ¥ 11,552 | ¥ 6,737 | ¥ 4,421 |
Minimum | |||
Significant Accounting Policies | |||
After tax profit to be transferred to statutory surplus fund (as a percent) | 10% | ||
After tax profit to be transferred to general reserve fund (as a percent) | 10% | ||
Maximum | |||
Significant Accounting Policies | |||
Limit of surplus fund as a percentage of registered capital, beyond which no further appropriation is required | 50% | ||
Limit of general reserve fund as a percentage of registered capital, beyond which no further appropriation is required | 50% |
Significant Accounting Polic_14
Significant Accounting Policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Significant Accounting Policies | |
Number of operating segments | 1 |
Concentrations and Risks (Detai
Concentrations and Risks (Details) | 12 Months Ended | ||
Dec. 31, 2022 Mobilegame item | Dec. 31, 2021 Distributionchannel item | Dec. 31, 2020 item | |
Telecommunications service provider | |||
Concentrations and Risks | |||
Total number of telecommunications service providers | 153 | 126 | 116 |
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 | 3 | 3 | 3 |
Telecommunications service provider | 10% or greater service providers | Servers and bandwidth expenditure | |||
Concentrations and Risks | |||
Concentration risk percentage | 45% | 55% | 55% |
Distribution channel risk | |||
Concentrations and Risks | |||
Number of distribution channel concentration over ten percent benchmark | Distributionchannel | 0 | ||
Distribution channel risk | Net revenues | Distribution channel A | |||
Concentrations and Risks | |||
Concentration risk percentage | 11% | ||
Mobile games | |||
Concentrations and Risks | |||
Number of mobile games concentration over ten percent benchmark | Mobilegame | 0 | ||
Mobile games | Mobile games | Net revenues | |||
Concentrations and Risks | |||
Concentration risk percentage | 23% | 26% | 40% |
Mobile games | Mobile game 1 | Mobile game revenues | |||
Concentrations and Risks | |||
Concentration risk percentage | 11% |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Prepayments and Other Current Assets | ||||
Prepayments for revenue sharing cost | [1] | ¥ 559,178 | ¥ 1,117,431 | |
Inventories, net | 437,451 | 455,767 | ||
Prepayments for sales tax | 435,373 | 523,282 | ||
Prepayments of marketing and other operational expenses | 125,685 | 181,764 | ||
Interest income receivable | 79,641 | 10,927 | ||
Prepayments to inventory suppliers | 76,598 | 94,746 | ||
Prepayments for content cost | 62,564 | 73,496 | ||
Deposits | 31,461 | 106,555 | ||
Loans to investees or ongoing investments | 25,458 | 68,681 | ||
Prepayments/ receivables relating to jointly invested content | 22,901 | 36,246 | ||
Others | 94,263 | 138,153 | ||
Total | ¥ 1,950,573 | $ 282,806 | ¥ 2,807,048 | |
[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 sheets 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. |
Short-term Investments (Details
Short-term Investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Short-term Investments | ||||
Short-term investments | ¥ 4,623,452 | ¥ 15,060,722 | $ 670,338 | |
Investment income related to short-term investments | 18,200 | 138,300 | ¥ 74,000 | |
Financial products | ||||
Short-term Investments | ||||
Short-term investments | 3,580,792 | 13,583,580 | ||
Investments in publicly traded companies | ||||
Short-term Investments | ||||
Short-term investments | ¥ 1,042,660 | 1,426,946 | ||
Money market funds | ||||
Short-term Investments | ||||
Short-term investments | ¥ 50,196 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Property and Equipment, Net | |||||
Property plant and equipment, gross | ¥ 3,177,036,000 | ¥ 2,559,098,000 | |||
Less: accumulated depreciation | (1,949,873,000) | (1,208,842,000) | |||
Net book value | 1,227,163,000 | 1,350,256,000 | $ 177,922 | ||
Depreciation expenses | 755,500,000 | $ 109,530 | 538,601,000 | ¥ 326,512,000 | |
Impairment charge recognized | 0 | 0 | ¥ 0 | ||
Leasehold improvements | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | 282,007,000 | 221,280,000 | |||
Servers and computers | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | 2,830,434,000 | 2,277,947,000 | |||
Others | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | ¥ 64,595,000 | ¥ 59,871,000 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Intangible Assets, Net | |||||
Gross carrying value | ¥ 9,896,860,000 | ¥ 7,697,132,000 | |||
Accumulated amortization | (5,570,070,000) | (3,861,532,000) | |||
Total | 4,326,790,000 | 3,835,600,000 | $ 627,326 | ||
Amortization expenses | 2,581,300,000 | $ 374,257 | 1,903,226,000 | ¥ 1,395,129,000 | |
Impairment charge | 0 | 0 | ¥ 0 | ||
Licensed copyrights of content | |||||
Intangible Assets, Net | |||||
Gross carrying value | 7,131,626,000 | 5,567,213,000 | |||
Accumulated amortization | (4,622,992,000) | (3,245,622,000) | |||
Total | ¥ 2,508,634,000 | 2,321,591,000 | |||
Weighted-average useful lives | 4 years 14 days | 4 years 14 days | |||
License rights of mobile games | |||||
Intangible Assets, Net | |||||
Gross carrying value | ¥ 427,726,000 | 455,687,000 | |||
Accumulated amortization | (300,659,000) | (229,559,000) | |||
Total | 127,067,000 | 226,128,000 | |||
Intellectual property and others | |||||
Intangible Assets, Net | |||||
Gross carrying value | 2,337,508,000 | 1,674,232,000 | |||
Accumulated amortization | (646,419,000) | (386,351,000) | |||
Total | ¥ 1,691,089,000 | ¥ 1,287,881,000 |
Intangible Assets, Net - Intang
Intangible Assets, Net - Intangible assets amortization expense for future years (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Intangible assets amortization expense | |||
2023 | ¥ 1,443,225 | ||
2024 | 901,334 | ||
2025 | 533,749 | ||
2026 | 371,679 | ||
2027 | 242,666 | ||
Thereafter | 834,137 | ||
Total | ¥ 4,326,790 | $ 627,326 | ¥ 3,835,600 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Goodwill [Roll Forward] | ||||
Beginning balance | ¥ 2,338,303,000 | ¥ 1,295,786,000 | ||
Additions (Note 25) | 386,827,000 | 1,042,517,000 | ||
Ending balance | 2,725,130,000 | $ 395,107 | 2,338,303,000 | ¥ 1,295,786,000 |
Impairment charge recognized | ¥ 0 | ¥ 0 | ¥ 0 |
Long-term Investments, Net - Su
Long-term Investments, Net - Summary of Equity Method Investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Long-term Investments [Abstract] | |||
Equity investments accounted for using the measurement alternative | ¥ 2,844,630 | ¥ 3,344,465 | |
Equity investments accounted for using the equity method | 1,923,144 | 1,235,289 | |
Investments accounted for at fair value | 883,244 | 922,770 | |
Total | ¥ 5,651,018 | $ 819,321 | ¥ 5,502,524 |
Long-term Investments, Net (Det
Long-term Investments, Net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Long-term Investments [Abstract] | ||||
Re-measurement gain or loss of equity investments | ¥ 152,200,000 | ¥ (31,500,000) | ¥ 0 | |
Impairment charges for long-term investments | 465,600,000 | $ 67,512 | 91,493,000 | 8,000,000 |
Equity investments without readily determinable fair value carrying amount | 493,100,000 | 10,400,000 | 0 | |
Gain loss on equity investments sold without readily determinable fair value sold net of impairment | 171,300,000 | 800,000 | 0 | |
Loss from equity method investments | 211,600,000 | $ 30,682 | 37,179,000 | 50,531,000 |
Fair value change | ¥ (198,600,000) | ¥ (156,000,000) | ¥ 24,900,000 |
Taxation - Composition of incom
Taxation - Composition of income tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Taxation | ||||
Current income tax expenses | ¥ 122,451 | ¥ 102,715 | ¥ 48,081 | |
Withholding income tax expenses | 18,189 | 14,066 | 18,754 | |
Deferred tax benefits | (36,495) | $ (5,291) | (21,492) | (13,466) |
Total | ¥ 104,145 | $ 15,100 | ¥ 95,289 | ¥ 53,369 |
Taxation - Income taxes (Detail
Taxation - Income taxes (Details) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income taxes | ||||
Income tax rate (as a percent) | 25% | 25% | 25% | |
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | ||||
Statutory income tax rate | 25% | 25% | 25% | |
Permanent differences | 6.74% | (1.19%) | 0.60% | |
Tax rate difference from statutory rate in other jurisdictions | [1] | (3.19%) | (1.43%) | (3.90%) |
Tax effect of preferential tax treatments | (8.91%) | (7.94%) | (8.29%) | |
Withholding tax | (0.25%) | (0.21%) | (0.63%) | |
Change in valuation allowance | (20.79%) | (15.65%) | (14.56%) | |
Effective income tax rate | (1.40%) | (1.42%) | (1.78%) | |
Operating loss carryforwards | ||||
Net operating tax loss carry forwards | ¥ 15,906,396,000 | |||
Loss expiring in 2023 | ||||
Operating loss carryforwards | ||||
Net operating tax loss carry forwards | 88,466,000 | |||
Loss expiring in 2024 | ||||
Operating loss carryforwards | ||||
Net operating tax loss carry forwards | 189,744,000 | |||
Loss expiring in 2025 | ||||
Operating loss carryforwards | ||||
Net operating tax loss carry forwards | 269,421,000 | |||
Loss expiring in 2026 | ||||
Operating loss carryforwards | ||||
Net operating tax loss carry forwards | 952,055,000 | |||
Loss expiring in 2027 and thereafter | ||||
Operating loss carryforwards | ||||
Net operating tax loss carry forwards | 14,406,710,000 | |||
Cayman Islands | ||||
Income taxes | ||||
Withholding tax amount | ¥ 0 | |||
Hong Kong | ||||
Income taxes | ||||
Income tax rate (as a percent) | 16.50% | 16.50% | 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% | 16.50% | 16.50% | |
China | ||||
Income taxes | ||||
Income tax rate (as a percent) | 25% | |||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | ||||
Statutory income tax rate | 25% | |||
China | Certain subsidiaries | Encouraged Enterprises [Member] | ||||
Income taxes | ||||
Preferential tax rate | 15% | |||
[1]It is primarily due to the tax effect of the Company as a tax-exempt |
Taxation - Sales tax (Details)
Taxation - Sales tax (Details) | 12 Months Ended | 42 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2022 | |
Services rendered | |||
Sales tax | |||
Value added tax rate (as a percent) | 6% | ||
Goods sold | |||
Sales tax | |||
Value added tax rate (as a percent) | 13% | ||
Advertising and marketing revenues | |||
Sales tax | |||
Culture business construction fee percentage | 3% | 1.50% | |
Culture business construction fee rate date up to which the prevailing rate is applicable | Dec. 31, 2024 |
Taxation - Deferred tax assets
Taxation - Deferred tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred tax assets: | |||
Deferred revenue | ¥ 473,200 | ¥ 143,688 | |
Accrued expenses and other payables | 112,780 | 150,092 | |
Advertising expenses in excess of deduction limit | 284,205 | 130,720 | |
Net operating tax loss carry forwards | 2,684,042 | 1,662,884 | |
Others | 146,831 | 71,048 | |
Total deferred tax assets | 3,701,058 | 2,158,432 | |
Less: valuation allowance | (3,657,467) | (2,122,077) | ¥ (977,333) |
Net deferred tax assets | 43,591 | 36,355 | |
Deferred tax liabilities | |||
Acquired intangible assets (Note 25) | (110,923) | (82,191) | |
Total deferred tax liabilities | (110,923) | (82,191) | |
Movement of the aggregate valuation allowances for deferred tax assets | |||
Balance at January 1 | (2,122,077) | (977,333) | (537,359) |
Re-measurement due to applicable preferential tax rate | 105 | ||
Addition | (1,543,301) | (1,154,342) | (484,445) |
Expiration of loss carry forward and impact of disposal of subsidiaries | 7,911 | 9,598 | 44,366 |
Balance at December 31 | ¥ (3,657,467) | ¥ (2,122,077) | ¥ (977,333) |
Taxation - Withholding income t
Taxation - Withholding income tax on dividends (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Withholding income tax | |
Withholding tax rate on dividend distributed by foreign investment entities (as a percent) | 10% |
Withholding tax rate on dividends paid by a FIE to its immediate holding company in Hong Kong (as a percent) | 5% |
Minimum percentage of ownership interests held by foreign investors for lower withholding tax rate (as a percent) | 25% |
Taxes Payable (Details)
Taxes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Taxes Payable | |||
EIT payable | ¥ 109,864 | ¥ 69,773 | |
VAT payable | 58,624 | 52,614 | |
Withholding income tax payable | 55,854 | 29,242 | |
Withholding individual income taxes for employees | 46,739 | 44,968 | |
Others | 45,163 | 7,173 | |
Total | ¥ 316,244 | $ 45,851 | ¥ 203,770 |
Short-term Loan and Current P_3
Short-term Loan and Current Portion of Long-term Debt (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Total | ¥ 6,621,386 | ¥ 1,232,106 | $ 960,011 |
Unsecured bank loans [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Within 12 months | Within 12 months | |
Unsecured bank loans | ¥ 1,242,882 | ¥ 943,658 | |
Unsecured bank loans [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Range | 3.70% | 3.70% | 3.70% |
Unsecured bank loans [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Range | 3.10% | 3.60% | 3.10% |
Unsecured borrowing [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Range | 3.79% | 3.95% | 3.79% |
Maturity Date | Within 12 months | Within 12 months | |
Unsecured borrowing | ¥ 240,871 | ¥ 288,448 | |
2027 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Range | 1.25% | 1.25% | |
Maturity Date | Within 12 months | ||
2027 Notes (Note 14) | ¥ 5,137,633 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accrued Liabilities and Other Payables | |||
Accrued marketing expenses | ¥ 777,572 | ¥ 1,321,776 | |
Leasing liabilities - current portion | ¥ 238,687 | ¥ 206,758 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total | Total | Total |
Payables to producers and licensors | ¥ 159,950 | ¥ 139,951 | |
Consideration payable for acquisitions and investments | 110,518 | 526,453 | |
Professional fees | 94,342 | 64,510 | |
Deposits | 48,637 | 40,445 | |
Interest payable | 17,731 | 26,469 | |
Advances from/payables to third parties | 6,420 | 14,386 | |
Other staff related cost | 5,372 | 5,325 | |
Others | 75,733 | 70,882 | |
Total | ¥ 1,534,962 | $ 222,548 | ¥ 2,416,955 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Detail) $ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Nov. 30, 2021 CNY (¥) | Nov. 30, 2021 USD ($) | Jun. 30, 2020 CNY (¥) | Jun. 30, 2020 USD ($) | Apr. 30, 2019 CNY (¥) | Apr. 30, 2019 USD ($) | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) $ / shares | Jun. 30, 2020 USD ($) | Jun. 01, 2020 $ / shares | Apr. 30, 2019 USD ($) | Apr. 01, 2019 $ / shares | |
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt principal amount | ¥ 8,782,848 | ¥ 18,039,125 | ||||||||||||||||
Unamortized debt issuance costs | (99,698) | (255,033) | ||||||||||||||||
Gain on repurchase of debt instrument | 1,318,594 | $ 191,178,000 | ||||||||||||||||
Long-Term Debt, Maturity, Year One | 135,000 | |||||||||||||||||
Long-term debt, Maturity, Year two and three | 9,200,000 | |||||||||||||||||
Long-term debt, Maturity, After year three | 5,200,000 | |||||||||||||||||
Fair Value, Inputs, Level 2 [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt, Fair value | 12,900,000 | |||||||||||||||||
April 2026 Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt principal amount | 2,990,200 | 2,737,500 | $ 500,000,000 | |||||||||||||||
Long-term debt interest rate | 1.375% | 1.375% | ||||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 3,356,100 | $ 488,200,000 | ||||||||||||||||
Long-term debt issuance cost | ¥ 81,100 | $ 11,800,000 | ||||||||||||||||
Debt instrument repurchase face amount percentage | 100% | 100% | ||||||||||||||||
Interest expense debt | 49,300 | 7,300,000 | $ 7,600,000 | $ 8,500,000 | ||||||||||||||
Unamortized debt issuance costs | 33,400 | 39,800 | ||||||||||||||||
Debt conversion, Original debt, Amount | $ | 14,000 | 70,600,000 | ||||||||||||||||
2027 Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt principal amount | ¥ 5,195,600 | 5,100,600 | $ 800,000,000 | |||||||||||||||
Long-term debt interest rate | 1.25% | 1.52% | 1.52% | 1.25% | ||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 5,594,800 | $ 786,100,000 | ¥ 5,594,800 | 786,100,000 | ||||||||||||||
Long-term debt issuance cost | ¥ 98,600 | $ 13,900,000 | ||||||||||||||||
Debt instrument repurchase face amount percentage | 100% | 100% | ||||||||||||||||
Interest expense debt | ¥ 79,300 | 11,800,000 | 11,900,000 | $ 6,900,000 | ||||||||||||||
Notes payable | 5,137,600 | $ 737,700,000 | ||||||||||||||||
Unamortized debt issuance costs | 58,000 | 69,200 | ||||||||||||||||
Debt conversion, Original debt, Amount | $ | 1,000 | |||||||||||||||||
Debt instrument repurchased face amount | 385,700 | 54,000,000 | ||||||||||||||||
Repayments of notes payable | 352,000 | 49,300,000 | ||||||||||||||||
Gain on repurchase of debt instrument | 29,300 | 4,100,000 | ||||||||||||||||
December 2026 Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt principal amount | 5,792,600 | 10,201,100 | $ 1,600,000,000 | |||||||||||||||
Long-term debt interest rate | 0.50% | 0.50% | ||||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 10,100,000 | $ 1,576,600,000 | 10,100,000 | 1,576,600,000 | ||||||||||||||
Long-term debt issuance cost | ¥ 149,600 | $ 23,400,000 | ||||||||||||||||
Debt instrument repurchase face amount percentage | 100% | 100% | ||||||||||||||||
Interest expense debt | 73,400 | 11,000,000 | $ 1,400,000 | |||||||||||||||
Unamortized debt issuance costs | 66,300 | ¥ 146,000 | ||||||||||||||||
Debt instrument repurchased face amount | 5,200,000 | $ 768,300,000 | ||||||||||||||||
Repayments of notes payable | 3,800,000 | 568,600,000 | ||||||||||||||||
Gain on repurchase of debt instrument | ¥ 1,289,500 | $ 190,300,000 | ||||||||||||||||
American Depository Shares [Member] | April 2026 Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt principal amount | $ | $ 1,000 | |||||||||||||||||
Convertible debt, conversion rate | 40.404 | 40.404 | ||||||||||||||||
Convertible debt, conversion price | $ / shares | $ 24.75 | |||||||||||||||||
Debt conversion, Converted instrument, Shares issued | shares | 565 | 565 | 2,854,253 | 2,854,253 | ||||||||||||||
American Depository Shares [Member] | 2027 Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt principal amount | $ | $ 1,000 | |||||||||||||||||
Convertible debt, conversion rate | 24.5516 | 24.5516 | ||||||||||||||||
Convertible debt, conversion price | $ / shares | $ 40.73 | |||||||||||||||||
Debt conversion, Converted instrument, Shares issued | shares | 24 | 24 | ||||||||||||||||
American Depository Shares [Member] | December 2026 Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt principal amount | $ | $ 1,000 | |||||||||||||||||
Convertible debt, conversion rate | 10.6419 | 10.6419 | ||||||||||||||||
Convertible debt, conversion price | $ / shares | $ 93.97 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of the Company's Unsecured Senior Notes (Details) ¥ in Thousands, $ in Millions | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Jun. 30, 2020 USD ($) |
Debt Instrument [Line Items] | |||
Carrying value | ¥ 8,683,150 | ¥ 17,784,092 | |
Unamortized discount and debt issuance costs | 99,698 | 255,033 | |
Total principal amounts of unsecured senior notes | 8,782,848 | 18,039,125 | |
April 2026 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value | ¥ 2,956,815 | 2,697,698 | |
Effective interest rate | 1.74% | ||
2027 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value | 5,031,312 | ||
Unamortized discount and debt issuance costs | ¥ (58,000) | (69,200) | |
Total principal amounts of unsecured senior notes | ¥ 5,195,600 | 5,100,600 | $ 800 |
Effective interest rate | 1.52% | 1.25% | |
December 2026 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value | ¥ 5,726,335 | ¥ 10,055,082 | |
Effective interest rate | 0.80% |
Ordinary Shares (Details)
Ordinary Shares (Details) ¥ in Thousands, $ in Millions, $ in Billions | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) shares | Mar. 31, 2021 HKD ($) shares | Apr. 30, 2020 CNY (¥) shares | Apr. 30, 2020 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 HKD ($) | Dec. 31, 2020 CNY (¥) | |
Ordinary shares | |||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ | ¥ 19,288,423 | ¥ 2,817,458 | |||||||
Share Repurchase Authorization Programme March Two Thousand And Twenty Two [Member] | |||||||||
Ordinary shares | |||||||||
Stock repurchase programme period in force | 24 months | ||||||||
ADSs | |||||||||
Ordinary shares | |||||||||
Ordinary shares, issued (in shares) | 17,310,696 | 17,310,696 | |||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 2,817,500 | $ 399.4 | |||||||
ADSs | Share Repurchase Authorization Programme March Two Thousand And Twenty Two [Member] | |||||||||
Ordinary shares | |||||||||
Shares authorized to be repurchased value | $ | $ 500 | ||||||||
Treasury stock shares acquired | 2,600,000 | ||||||||
Treasury stock shares acquired cost method | $ | $ 53.6 | ||||||||
Class Z Ordinary Shares | |||||||||
Ordinary shares | |||||||||
Ordinary shares, issued (in shares) | 28,750,000 | 28,750,000 | 17,310,696 | 17,310,696 | |||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 19,300,000 | $ 22.9 | |||||||
Class Z Ordinary Shares | Over-allotment option [Member] | |||||||||
Ordinary shares | |||||||||
Ordinary shares, issued (in shares) | 3,750,000 | 3,750,000 | |||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 19,300,000 | $ 22.9 |
Employee Benefits (Details)
Employee Benefits (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits | |||
Contributions to medical and pension schemes | ¥ 934,876 | ¥ 695,310 | ¥ 195,655 |
Other employee benefits | 99,303 | 65,990 | 40,216 |
Total | ¥ 1,034,179 | ¥ 761,300 | ¥ 235,871 |
Share-based Compensation - Desc
Share-based Compensation - Description of share option plans (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jul. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | ||
Description of share option plans | ||
Share based compensation by share based award equity instruments other than options vested during the period | 0 | |
Minimum | ||
Description of share option plans | ||
Vesting Period | 0 years | |
Expiration period | 6 years | |
Minimum | Restricted Stock Units (RSUs) [Member] | ||
Description of share option plans | ||
Vesting Period | 0 years | |
Maximum | ||
Description of share option plans | ||
Vesting Period | 6 years | |
Expiration period | 7 years | |
Maximum | Restricted Stock Units (RSUs) [Member] | ||
Description of share option plans | ||
Vesting Period | 4 years | |
2018 Plan | Restricted Stock Units (RSUs) [Member] | ||
Description of share option plans | ||
Total unrecognized compensation expenses related to unvested awards | ¥ 292 | |
Weighted average remaining vesting period | 3 years 10 months 24 days | |
Global Share Plan and 2018 Plan [Member] | ||
Description of share option plans | ||
Total unrecognized compensation expenses related to unvested awards | ¥ 3,415.8 | |
Weighted average remaining vesting period | 3 years 6 months | |
Class Z Ordinary Shares | Global Share Plan | Maximum | ||
Description of share option plans | ||
Aggregate number of shares issuable under the plan | 19,880,315 | |
Class Z Ordinary Shares | 2018 Plan | ||
Description of share option plans | ||
Aggregate number of shares issuable under the plan | 30,673,710 | |
Number of Shares Available for Grant | 28,706,326 | |
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum | 10% | |
Class Z Ordinary Shares | 2018 Plan | Maximum | ||
Description of share option plans | ||
Aggregate number of shares issuable under the plan | 33,132,989 |
Share-based Compensation - Serv
Share-based Compensation - Service-based RSUs activities (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | |
Granted (in shares) | 1,967 |
Ending balance (in shares) | 1,967 |
Beginning balance (in USD/shares) | $ / shares | |
Granted (in USD/shares) | $ / shares | 24.59 |
Ending balance (in USD/shares) | $ / shares | $ 24.59 |
Employees | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | |
Granted (in shares) | 1,932 |
Ending balance (in shares) | 1,932 |
Senior Management | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | |
Ending balance (in shares) | |
Consultants | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | |
Granted (in shares) | 35 |
Ending balance (in shares) | 35 |
Share-based Compensation - Valu
Share-based Compensation - Valuation assumptions (Details) - Share options | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation assumptions | |||
Expected volatility, minimum | 57.60% | 53% | 50.10% |
Expected volatility, maximum | 58% | 53.50% | 55% |
Weighted average volatility | 57.90% | 53.20% | 51.90% |
Expected dividends | |||
Risk-free rate, minimum | 2.70% | 0.90% | 0.40% |
Risk-free rate, maximum | 3.60% | 1.40% | 0.70% |
Minimum | |||
Valuation assumptions | |||
Contractual term (in years) | 6 years | 6 years | 6 years |
Maximum | |||
Valuation assumptions | |||
Contractual term (in years) | 7 years | 7 years | 7 years |
Share-based Compensation - Shar
Share-based Compensation - Share options activities (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 $ / shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | Dec. 31, 2019 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | |
Additional Disclosures | ||||||||
Weighted Average Remaining Contractual Life (In years) | 5 years 3 days | 5 years 4 months 28 days | 4 years 1 month 17 days | |||||
Weighted average grant date fair value of options granted | (per share) | $ 18.5 | ¥ 126.8 | ¥ 423.6 | ¥ 262 | ||||
Employee Stock Option [Member] | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 22,510 | 22,297 | 12,174 | |||||
Granted (in shares) | 5,829 | 3,948 | 15,716 | |||||
Exercised (in shares) | (3,929) | (3,263) | (4,492) | |||||
Forfeited (in shares) | (2,500) | (472) | (1,101) | |||||
Ending balance (in shares) | 21,910 | 22,510 | 22,297 | 12,174 | ||||
Exercisable (in shares) | 4,715 | |||||||
Weighted Average Exercise Price | ||||||||
Beginning balance (in USD/shares) | $ / shares | 2.001 | $ 2.0236 | $ 0.0001 | |||||
Granted (in USD/shares) | $ / shares | 0.0036 | 0.0001 | 2.9007 | |||||
Exercised (in USD/shares) | $ / shares | 0.0001 | 0.0001 | 0.0001 | |||||
Forfeited (in USD/shares) | $ / shares | 0.2331 | 0.0001 | 0.4234 | |||||
Ending balance (in USD/shares) | $ / shares | 2.0283 | $ 2.001 | $ 2.0236 | |||||
Exercisable (in USD/shares) | $ / shares | $ 2.8747 | |||||||
Additional Disclosures | ||||||||
Weighted Average Remaining Contractual Life (In years) | 4 years 8 months 12 days | 5 years 4 months 28 days | ||||||
Weighted Average Remaining Contractual Life, Exercisable (In years) | 4 years | |||||||
Aggregate Intrinsic Value, Beginning balance | ¥ | ¥ 6,372,503 | ¥ 12,177,047 | ¥ 1,581,408 | |||||
Aggregate Intrinsic Value, Ending balance | ¥ | ¥ 3,305,336 | ¥ 6,372,503 | ¥ 12,177,047 | ¥ 1,581,408 | ||||
Aggregate Intrinsic Value, Exercisable | ¥ | ¥ 778,043 | |||||||
Employees | Employee Stock Option [Member] | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 12,716 | 11,355 | 8,274 | |||||
Granted (in shares) | 5,661 | 3,927 | 6,966 | |||||
Exercised (in shares) | (2,575) | (2,094) | (2,784) | |||||
Forfeited (in shares) | (2,500) | (472) | (1,101) | |||||
Ending balance (in shares) | 13,302 | 12,716 | 11,355 | 8,274 | ||||
Exercisable (in shares) | 2,113 | |||||||
Senior Management | Employee Stock Option [Member] | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 9,611 | 10,712 | 3,655 | |||||
Granted (in shares) | 6 | 8,700 | ||||||
Exercised (in shares) | (1,204) | (1,101) | (1,643) | |||||
Ending balance (in shares) | 8,413 | 9,611 | 10,712 | 3,655 | ||||
Exercisable (in shares) | 2,580 | |||||||
Consultants | Employee Stock Option [Member] | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 183 | 230 | 245 | |||||
Granted (in shares) | 162 | 21 | 50 | |||||
Exercised (in shares) | (150) | (68) | (65) | |||||
Ending balance (in shares) | 195 | 183 | 230 | 245 | ||||
Exercisable (in shares) | 22 |
Net Loss per Share (Details)
Net Loss per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net loss | ¥ (7,507,653) | $ (1,088,507) | ¥ (6,808,739) | ¥ (3,054,017) |
Accretion to redeemable noncontrolling interests | ¥ | (4,292) | |||
Net loss attributable to noncontrolling interests | 10,640 | 1,542 | 19,511 | 46,605 |
Net loss attributable to the Bilibili Inc.'s shareholders | ¥ (7,497,013) | $ (1,086,965) | ¥ (6,789,228) | ¥ (3,011,704) |
Denominator: | ||||
Net loss per share, basic | (per share) | ¥ (18.99) | $ (2.75) | ¥ (17.87) | ¥ (8.71) |
Net loss per share, diluted | (per share) | ¥ (18.99) | $ (2.75) | ¥ (17.87) | ¥ (8.71) |
Share options | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 2,069,570 | 2,069,570 | 13,249,083 | 8,927,697 |
Ordinary Shares | ||||
Denominator: | ||||
Weighted average number of ordinary shares outstanding, basic | 394,863,584 | 394,863,584 | 379,898,121 | 345,816,023 |
Weighted average number of ordinary shares outstanding, diluted | 394,863,584 | 394,863,584 | 379,898,121 | 345,816,023 |
Ordinary Shares | Convertible senior notes (the "April 2026 Notes") due April 2026 [Member] | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 17,347,721 | 17,347,721 | 18,706,486 | 20,202,000 |
Ordinary Shares | Convertible senior notes (the "2027 Notes") due 2027 [Member] | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 19,382,489 | 19,382,489 | 19,641,274 | 19,641,280 |
Ordinary Shares | Convertible senior notes (the "December 2026 Notes") due December 2026 [Member] | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 14,466,365 | 14,466,365 | 17,027,040 | |
Restricted Stock Units (RSUs) [Member] | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 0 | 0 |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Jul. 31, 2020 CNY (¥) | ||||
Related Party Transactions | ||||||||
Purchases of goods and services | ¥ 206,931 | ¥ 117,116 | ¥ 35,131 | |||||
(Acquire of)/Transfer of long-term investments | [1] | 275,000 | (40,837) | (110,039) | ||||
Investment income and interest income | 78,827 | 14,366 | 2,238 | |||||
Sales of goods and services | 13,953 | 9,136 | 4,915 | |||||
Amount due from related parties | 1,594,920 | 2,041,316 | $ 231,242 | |||||
Amount due to related parties | ¥ 108,307 | [2] | 216,434 | [2] | $ 15,703 | |||
Equity method investments purchased consideration payable | ¥ 110,000 | |||||||
Chaodian [Member] | ||||||||
Related Party Transactions | ||||||||
Purchase of noncontrolling interests of Chaodian Inc. ("Chaodian") | [3] | ¥ 257,288 | ||||||
Capital contribution/Loans to an entity [Member] | ||||||||
Related Party Transactions | ||||||||
Capital contribution/Loans to an entity ("Entity") | [4] | 2,785,314 | ||||||
Loans to an entity [Member] | ||||||||
Related Party Transactions | ||||||||
Related party transaction interest rate | 3.30% | |||||||
Investment Fund [Member] | ||||||||
Related Party Transactions | ||||||||
Amount due from related parties | [1] | ¥ 103,689 | 48,135 | |||||
Entity [Member] | ||||||||
Related Party Transactions | ||||||||
Amount due from related parties | [4] | ¥ 1,308,652 | 1,709,689 | |||||
Related party transaction, Description of transaction | The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. | |||||||
Other Investees [Member] | ||||||||
Related Party Transactions | ||||||||
Amount due from related parties | ¥ 182,579 | ¥ 283,492 | ||||||
Equity Method Investee [Member] | ||||||||
Related Party Transactions | ||||||||
Consideration on sale of equity method investments | ¥ 275,000 | |||||||
[1]In July 2020, the Company acquired certain equity interests of two investments from one investment fund, of which the Company is its limited partner. The consideration was RMB110.0 million. In 2022, the Company transferred several equity investments of the Group to another investment fund, of which the Company is its limited partner. The consideration was RMB275.0 million. The balances due from the investment funds as of December 31, 2021 and December 31, 2022 were consideration receivables related to the equity investments transferred, which is non-trade in nature.[2]The balances as of December 31, 2021 and 2022 mainly represent considerations related to long-term investments, which are non-trade in nature.[3]In September 2020, the Company acquired the rest equity interests of Chaodian from certain noncontrolling shareholders, which included some related parties of the Company. The consideration was determined by referenced to a third-party valuer’s valuation and the considerations were settled in 2020.[4]The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. The balance as of December 31, 2021 and 2022 represents interest-bearing loans and interest expenses related to the Entity, which are non-trade in nature. The annual interest rates of the loans were 3.3%. |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Segment Information | |
Number of operating segments | 1 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) ¥ in Billions | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
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% |
Amount of net assets of the Company's PRC subsidiaries and VIEs, not available for distribution | ¥ 7.8 |
Percentage of net assets of the Company's PRC subsidiaries and VIEs, not available for distribution | 51.20% |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | ¥ 10,172,584 | $ 1,474,886 | ¥ 7,523,108 | ¥ 4,678,109 |
Time deposits | 4,767,972 | 691,291 | 7,632,334 | |
Amounts due from Group companies | 1,594,920 | 231,242 | 2,041,316 | |
Prepayments and other current assets | 1,950,573 | 282,806 | 2,807,048 | |
Short-term investments | 4,623,452 | 670,338 | 15,060,722 | |
Long-term investments, net | 5,651,018 | 819,321 | 5,502,524 | |
Investment in subsidiaries and net assets of VIEs and VIEs' subsidiaries | 1,923,144 | 1,235,289 | ||
Total assets | 41,830,570 | 6,064,863 | 52,053,151 | |
Deferred revenue | 2,819,323 | 408,763 | 2,645,389 | |
Accrued liabilities and other payables | 1,534,962 | 222,548 | 2,416,955 | |
Other long-term liabilities | 814,429 | 118,082 | 481,982 | |
Total liabilities | 26,590,983 | 3,855,330 | 30,337,085 | |
Total Bilibili Inc.'s shareholders' equity | 15,237,828 | 2,209,278 | 21,703,667 | |
Total liabilities and shareholders' equity | 41,830,570 | $ 6,064,863 | 52,053,151 | |
Parent Company [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 270,138 | 1,748,896 | ||
Time deposits | 4,067,326 | 7,625,337 | ||
Amounts due from Group companies | 22,313,954 | 23,306,176 | ||
Prepayments and other current assets | 61,631 | 11,773 | ||
Short-term investments | 1,091,044 | 13,107,720 | ||
Long-term investments, net | 1,157,990 | 1,448,100 | ||
Investment in subsidiaries and net assets of VIEs and VIEs' subsidiaries | 226,249 | |||
Total assets | 29,188,332 | 47,248,002 | ||
Short-term loan and current portion of long-term debt | 5,137,633 | |||
Deferred revenue | 32,513 | 40,167 | ||
Accrued liabilities and other payables | 97,208 | 126,512 | ||
Other long-term liabilities | 8,683,150 | 17,784,092 | ||
Deficit in subsidiaries and net loss of VIEs and VIEs' subsidiaries | 7,593,564 | |||
Total liabilities | 13,950,504 | 25,544,335 | ||
Total Bilibili Inc.'s shareholders' equity | 15,237,828 | 21,703,667 | ||
Total liabilities and shareholders' equity | ¥ 29,188,332 | ¥ 47,248,002 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed statements of comprehensive loss (Details) - Parent Company [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||
Total costs and expenses | ¥ (30,558) | ¥ (12,405) | ¥ (44,090) |
Net Loss from subsidiaries and net loss of VIEs and VIEs' subsidiaries | (7,685,211) | (6,713,764) | (2,940,906) |
(Loss)/Gain from non-operations | 218,756 | (63,059) | (26,708) |
Loss before income tax expenses | (7,497,013) | (6,789,228) | (3,011,704) |
Net loss | ¥ (7,497,013) | ¥ (6,789,228) | ¥ (3,011,704) |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash used in operating activities | ¥ (3,911,400) | $ (567,097) | ¥ (2,647,008) | ¥ 753,103 |
Purchase of short-term investments | 70,578,711 | 10,232,951 | 71,748,847 | 26,731,176 |
Maturities of short-term investments | 81,698,532 | 11,845,174 | 60,524,888 | 24,921,538 |
Placements of time deposits | 10,245,026 | 1,485,389 | 10,697,444 | 10,907,296 |
Maturities of time deposits | 13,909,967 | 2,016,756 | 7,655,147 | 7,670,373 |
Net cash (used in)/provided by investing activities | 10,609,218 | 1,538,192 | (24,578,111) | (8,906,821) |
Proceeds from exercise of employees' share options | 4 | 1 | 3 | 3 |
Repurchase of convertible senior notes | 4,201,506 | 609,161 | ||
Repurchase of shares | 347,581 | 50,395 | ||
Net cash provided by/(used in) financing activities | (4,354,919) | $ (631,404) | 30,389,152 | 8,335,419 |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash used in operating activities | (650,630) | (104,672) | (113,574) | |
Purchase of short-term investments | (33,683,941) | (48,781,106) | (455,347) | |
Maturities of short-term investments | 45,951,288 | 36,744,305 | 465,726 | |
Placements of time deposits | (4,878,180) | (10,658,126) | (9,604,228) | |
Maturities of time deposits | 9,133,225 | 7,600,828 | 4,925,241 | |
Investments in and loans to subsidiaries, VIEs and VIEs' subsidiaries | (13,131,173) | (11,168,671) | (5,102,250) | |
Other investing activities | 283,028 | (1,153,850) | (600,067) | |
Net cash (used in)/provided by investing activities | 3,674,247 | (27,416,620) | (10,370,925) | |
Proceeds from exercise of employees' share options | 4 | 3 | 3 | |
Proceeds from issuance of ordinary shares, net of issuance costs of US$563 and HKD337,143, nil, respectively | 19,288,423 | 2,817,458 | ||
Repurchase of convertible senior notes | (4,201,506) | |||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$13,857, US$23,402 and nil, respectively | 10,085,520 | 5,594,779 | ||
Repurchase of shares | (347,581) | |||
Net cash provided by/(used in) financing activities | ¥ (4,549,083) | ¥ 29,373,946 | ¥ 8,412,240 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information - Condensed statements of cash flows (Parentheticals) (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 HKD ($) | Dec. 31, 2020 USD ($) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Payment of stock issuance costs | $ 337,143 | $ 563 | ||
Payment of debt issuance costs | ¥ 0 | $ 23,402 | 13,857 | |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Payment of stock issuance costs | 0 | $ 337,143 | 563 | |
Payment of debt issuance costs | ¥ 0 | $ 23,402 | $ 13,857 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2021 CNY (¥) shares | Sep. 30, 2020 CNY (¥) shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||||||
Additional paid-in capital | ¥ 36,623,161 | $ 5,309,859 | ¥ 35,929,961 | ||||
Chaodian [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 63.60% | ||||||
Consideration transferred | ¥ 744,600 | ||||||
Cash consideration | 250,500 | ||||||
Additional paid-in capital | ¥ 193,300 | ||||||
Percentage of equity interest owned after transactions | 100% | ||||||
Chaodian [Member] | Class Z ordinary shares [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Share consideration | shares | 1,731,100 | ||||||
Anime Business [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 8.10% | ||||||
Consideration transferred | ¥ 612,300 | ||||||
Cash consideration | ¥ 369,100 | ¥ 369,124 | |||||
Percentage of equity interest owned after transactions | 100% | ||||||
Anime Business [Member] | Class Z ordinary shares [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Share consideration | shares | 400,000 |
Acquisitions (Details)
Acquisitions (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2022 CNY (¥) | Nov. 30, 2021 CNY (¥) | Jan. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Purchase price allocation | |||||||
Goodwill | ¥ 2,725,130 | ¥ 2,338,303 | ¥ 1,295,786 | $ 395,107 | |||
Total purchase price comprised of: | |||||||
Share consideration | 1,207,980 | 889,957 | |||||
Anime Business | |||||||
Acquisitions | |||||||
Percentage of equity interest owned after transactions | 100% | ||||||
Purchase price allocation | |||||||
Net assets acquired | 189,763 | ||||||
Goodwill | 283,402 | ||||||
Total | 687,165 | ||||||
Total purchase price comprised of: | |||||||
Cash consideration | ¥ 369,100 | 369,124 | |||||
Share consideration | 243,203 | ||||||
Fair value of previously held equity interests | 74,838 | ||||||
Total | 687,165 | ||||||
Anime Business | Brand | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 85,000 | ||||||
Amortization Period | 8 years | ||||||
Anime Business | Vendor relationship | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 75,000 | ||||||
Amortization Period | 10 years | ||||||
Anime Business | Non-compete clause | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 54,000 | ||||||
Amortization Period | 6 years | ||||||
Comics Business | |||||||
Acquisitions | |||||||
Percentage of equity interest owned after transactions | 100% | ||||||
Purchase price allocation | |||||||
Net assets acquired | ¥ 48,764 | ||||||
Deferred tax liabilities | (42,133) | ||||||
Goodwill | 281,369 | ||||||
Total | 600,000 | ||||||
Total purchase price comprised of: | |||||||
Cash consideration | ¥ 600,000 | 600,000 | |||||
Comics Business | Brand | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 23,000 | ||||||
Amortization Period | 10 years | ||||||
Comics Business | User base | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 11,000 | ||||||
Amortization Period | 3 years | ||||||
Comics Business | Copyrights | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 269,000 | ||||||
Amortization Period | 8 years | ||||||
Comics Business | Technology | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 4,000 | ||||||
Amortization Period | 3 years | ||||||
Comics Business | Non-compete clause | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 5,000 | ||||||
Amortization Period | 2 years | ||||||
Game Business | |||||||
Acquisitions | |||||||
Percentage of equity interest owned after transactions | 100% | ||||||
Purchase price allocation | |||||||
Net assets acquired | ¥ 333,830 | ||||||
Deferred tax liabilities | (40,491) | ||||||
Goodwill | 344,696 | ||||||
Total | 800,000 | ||||||
Total purchase price comprised of: | |||||||
Cash consideration | ¥ 800,000 | 800,000 | |||||
Game Business | Non-compete clause | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 111,000 | ||||||
Amortization Period | 6 years | ||||||
Game Business | Others | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 50,965 | ||||||
Amortization Period | 5 years | ||||||
Other acquisitions | |||||||
Purchase price allocation | |||||||
Net assets acquired | ¥ 85,369 | 28,320 | 18,495 | ||||
Deferred tax liabilities | (17,500) | (49,140) | |||||
Goodwill | 42,131 | 477,746 | 283,760 | ||||
Total | 180,000 | 754,166 | 413,751 | ||||
Total purchase price comprised of: | |||||||
Cash consideration | 150,000 | 244,949 | 295,323 | ||||
Share consideration | 391,244 | 118,428 | |||||
Fair value of previously held equity interests | 30,000 | 117,973 | |||||
Total | ¥ 180,000 | 754,166 | 413,751 | ||||
Other acquisitions | Brand | |||||||
Purchase price allocation | |||||||
Intangible assets | 66,000 | ||||||
Amortization Period | 5 years | ||||||
Other acquisitions | Customer relationship | |||||||
Purchase price allocation | |||||||
Intangible assets | 83,000 | ||||||
Amortization Period | 5 years | ||||||
Other acquisitions | Non-compete clause | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 9,000 | 28,000 | |||||
Amortization Period | 6 years | ||||||
Other acquisitions | Others | |||||||
Purchase price allocation | |||||||
Intangible assets | ¥ 61,000 | ¥ 71,100 | ¥ 160,636 | ||||
Other acquisitions | Others | Minimum | |||||||
Purchase price allocation | |||||||
Amortization Period | 1 year | ||||||
Other acquisitions | Others | Maximum | |||||||
Purchase price allocation | |||||||
Amortization Period | 10 years |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 11, 2023 USD ($) $ / shares shares | Mar. 31, 2021 shares | Apr. 30, 2020 shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 $ / shares | Dec. 31, 2021 CNY (¥) | |
Subsequent Events [Line Items] | ||||||
Debt instrument face value | ¥ | ¥ 8,782,848 | ¥ 18,039,125 | ||||
Class Z ordinary shares [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | shares | 28,750,000 | 17,310,696 | ||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | |||||
Class Z ordinary shares [Member] | IPO [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Common Stock, Conversion Basis | one | |||||
American Depositary Shares [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | shares | 17,310,696 | |||||
Subsequent Event [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Debt Instrument, Repurchase Amount | $ | $ 331.2 | |||||
Subsequent Event [Member] | convertible senior notes due December 2026 [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Debt instrument face value | $ | $ 384.8 | |||||
Percentage of Convertible notes | 0.50% | |||||
Subsequent Event [Member] | American Depositary Shares [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Sale of stock net consideration received on the transaction | $ | $ 68.8 | |||||
Subsequent Event [Member] | American Depositary Shares [Member] | IPO [Member] | ||||||
Subsequent Events [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | shares | 15,344,000 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | |||||
Shares Issued, Price Per Share | $ / shares | $ 26.65 |