Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2020 | |
Document Information [Line Items] | |
Document Type | F-4/A |
Amendment Flag | true |
Entity Registrant Name | HUYA Inc. |
Entity Central Index Key | 0001728190 |
Entity Emerging Growth Company | false |
Entity Address, Country | CN |
Entity Incorporation, State or Country Code | E9 |
Amendment Description | Amendment No.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 2,062,524,000 | $ 291,931,000 | ¥ 1,113,193,000 |
Restricted cash | 6,175,000 | 874,000 | 1,392,000 |
Short-term deposits | 6,284,593,000 | 889,526,000 | 6,743,445,000 |
Short-term investments | 2,398,004,000 | 339,415,000 | 2,219,531,000 |
Accounts receivable, net | 63,486,000 | 8,986,000 | 61,708,000 |
Amounts due from related parties | 52,415,000 | 7,419,000 | 51,936,000 |
Prepayments and other current assets | 408,489,000 | 57,818,000 | 400,615,000 |
Other current assets | 40,052,000 | 17,686,000 | |
Total current assets | 11,275,686,000 | 1,595,969,000 | 10,591,820,000 |
Non-current assets | |||
Deferred tax assets | 99,182,000 | 14,038,000 | 45,816,000 |
Investments | 430,551,000 | 60,941,000 | 379,424,000 |
Property and equipment, net | 118,489,000 | 16,771,000 | 96,686,000 |
Intangible assets, net | 66,078,000 | 9,353,000 | 45,085,000 |
Right-of-use assets, net | 90,919,000 | 12,869,000 | 102,824,000 |
Prepayments and other non-current assets | 96,751,000 | 13,694,000 | 104,895,000 |
Total non-current assets | 901,970,000 | 127,666,000 | 774,730,000 |
Total assets | 12,177,656,000 | 1,723,635,000 | 11,366,550,000 |
Current liabilities | |||
Accounts payable | 34,714,000 | 4,913,000 | 3,725,000 |
Deferred revenue | 560,789,000 | 845,966,000 | |
Advances from customers and deferred revenue | 560,789,000 | 79,375,000 | 845,966,000 |
Income taxes payable | 83,223,000 | 11,779,000 | 26,051,000 |
Accrued liabilities and other current liabilities | 1,562,921,000 | 221,217,000 | 1,460,025,000 |
Amounts due to related parties | 238,495,000 | 33,757,000 | 79,032,000 |
Lease liabilities due within one year | 31,961,000 | 4,524,000 | 31,878,000 |
Total current liabilities | 2,512,103,000 | 355,565,000 | 2,446,677,000 |
Non-current liabilities | |||
Lease liabilities | 58,837,000 | 8,328,000 | 70,110,000 |
Deferred tax liabilities | 540,000 | 76,000 | 0 |
Deferred revenue | 196,990,000 | 27,882,000 | 164,913,000 |
Total non-current liabilities | 256,367,000 | 36,286,000 | 235,023,000 |
Total liabilities | 2,768,470,000 | 391,851,000 | 2,681,700,000 |
Shareholders' equity | |||
Additional paid-in capital | 10,327,892,000 | 1,461,818,000 | 10,081,946,000 |
Statutory reserves | 64,679,000 | 9,155,000 | 64,679,000 |
Accumulated deficit | (1,611,137,000) | (228,042,000) | (1,986,054,000) |
Accumulated other comprehensive income | 627,606,000 | 88,832,000 | 524,135,000 |
Total shareholders' equity | 9,409,186,000 | 1,331,784,000 | 8,684,850,000 |
Total liabilities and shareholders' equity | 12,177,656,000 | 1,723,635,000 | 11,366,550,000 |
Douyu [Member] | |||
Current assets | |||
Cash and cash equivalents | 6,381,495,234 | 903,242,025 | 8,091,990,270 |
Restricted cash | 10,702,719 | 1,514,872 | 42,902,719 |
Short-term bank deposits | 1,696,695,000 | 240,151,590 | 0 |
Short-term investments | 14,154,082 | 100,000,000 | 0 |
Accounts receivable, net | 160,610,476 | 22,732,937 | 188,099,873 |
Prepayments | 98,523,752 | 13,945,132 | 50,304,112 |
Amounts due from related parties | 40,533,442 | 5,737,136 | 24,043,850 |
Other current assets | 178,743,606 | 25,299,515 | 204,309,593 |
Total current assets | 8,667,304,229 | 1,226,777,289 | 8,601,650,417 |
Non-current assets | |||
Investments | 481,671,468 | 68,176,171 | 225,533,885 |
Property and equipment, net | 35,235,840 | 4,987,309 | 38,909,465 |
Intangible assets, net | 188,537,894 | 26,685,807 | 198,056,841 |
Goodwill | 14,031,800 | 1,986,072 | 30,972,888 |
Right-of-use assets | 85,515,963 | 12,103,999 | 0 |
Other non-current assets | 17,170,800 | 2,430,369 | 8,546,843 |
Total assets | 9,489,467,994 | 1,343,147,016 | 9,103,670,339 |
Current liabilities | |||
Accounts payable | 1,078,539,829 | 152,657,405 | 890,038,953 |
Advances from customers | 13,274,947 | 1,878,947 | 17,134,532 |
Deferred revenue | 182,658,465 | 25,853,628 | 195,982,486 |
Accrued expenses and other current liabilities | 297,497,982 | 42,108,106 | 392,347,124 |
Amounts due to related parties | 263,965,885 | 37,361,946 | 298,733,022 |
Lease liabilities due within one year | 44,485,430 | 6,296,504 | 0 |
Total current liabilities | 1,880,422,538 | 266,156,536 | 1,794,236,117 |
Non-current liabilities | |||
Lease liabilities | 38,276,429 | 5,417,677 | 0 |
Deferred revenue | 40,073,602 | 5,672,050 | 46,070,348 |
Total liabilities | 1,958,772,569 | 277,246,263 | 1,840,306,465 |
Commitments and contingencies (Note 12) | |||
Shareholders' equity | |||
Ordinary shares | 22,388 | 3,169 | 22,144 |
Treasury shares (291,207 and 1,177,499 shares as of December 31, 2019 and June 30, 2020, respectively) | (695,097,853) | (98,384,715) | (168,567,125) |
Additional paid-in capital | 10,433,754,807 | 1,476,802,141 | 10,324,277,855 |
Accumulated deficit | (2,752,222,410) | (389,551,798) | (3,348,717,860) |
Accumulated other comprehensive income | 491,673,598 | 69,591,878 | 434,893,990 |
Total Dou Yu Shareholder's Equity | 7,478,130,530 | 1,058,460,675 | 7,241,909,004 |
Noncontrolling interests | 52,564,895 | 7,440,078 | 21,454,870 |
Total Shareholders' Equity | 7,530,695,425 | 1,065,900,753 | 7,263,363,874 |
Total liabilities and shareholders' equity | 9,489,467,994 | 1,343,147,016 | 9,103,670,339 |
Common Class A [Member] | |||
Shareholders' equity | |||
Ordinary shares | 46,000 | 7,000 | 44,000 |
Total shareholders' equity | 46,000 | 44,000 | |
Common Class B [Member] | |||
Shareholders' equity | |||
Ordinary shares | 100,000 | $ 14,000 | 100,000 |
Total shareholders' equity | ¥ 100,000 | ¥ 100,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Jun. 30, 2020$ / shares | Jun. 30, 2020CNY (¥)shares | Dec. 31, 2019$ / shares | Dec. 31, 2019CNY (¥)shares |
Accounts Receivable, Allowance for Credit Loss, Current | ¥ | ¥ 3,215,000 | ¥ 922,000 | ||
Douyu [Member] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued | 34,568,689 | 34,568,689 | ||
Ordinary shares, shares outstanding | 33,098,886 | 32,751,819 | ||
Treasury Stock, Common, Shares | 1,177,499 | 291,207 | ||
Accounts Receivable, Allowance for Credit Loss, Current | ¥ | ¥ 14,426,759 | ¥ 15,834,902 | ||
Common Class A [Member] | ||||
Ordinary shares, par value | $ / shares | 0.0001 | 0.0001 | ||
Ordinary shares, shares authorized | 750,000,000 | 750,000,000 | ||
Ordinary shares, shares issued | 70,054,088 | 67,101,314 | ||
Ordinary shares, shares outstanding | 70,054,088 | 67,101,314 | ||
Common Class B [Member] | ||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | ||
Ordinary shares, shares issued | 152,357,321 | 152,357,321 | ||
Ordinary shares, shares outstanding | 152,357,321 | 152,357,321 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income | 6 Months Ended | |||
Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | ||
Net revenues | ||||
Total net revenues | ¥ 5,109,192,000 | $ 723,159,000 | ¥ 3,641,939,000 | |
Cost of revenues | [1] | (4,059,364,000) | (574,566,000) | (3,032,898,000) |
Gross profit | 1,049,828,000 | 148,593,000 | 609,041,000 | |
Operating expenses | ||||
Research and development expenses | [1] | (335,914,000) | (47,546,000) | (195,455,000) |
Sales and marketing expenses | [1] | (221,056,000) | (31,288,000) | (197,756,000) |
General and administrative expenses | [1] | (230,212,000) | (32,584,000) | (160,139,000) |
Total operating expenses | (787,182,000) | (111,418,000) | (553,350,000) | |
Other income | 52,037,000 | 7,365,000 | 40,196,000 | |
Income (loss) from operations | 314,683,000 | 44,540,000 | 95,887,000 | |
Interest income and short-term investments income | 163,454,000 | 23,135,000 | 129,606,000 | |
Gain on fair value change of an investment | 2,160,000 | 306,000 | 0 | |
Other non-operating expenses | (10,010,000) | (1,417,000) | 0 | |
Foreign exchange gain | (2,400,000) | (340,000) | 413,000 | |
Income before income tax expenses | 467,887,000 | 66,224,000 | 225,906,000 | |
Income tax expenses | (88,842,000) | (12,575,000) | (40,600,000) | |
Income before share of loss in equity method investments, net of income taxes | 379,045,000 | 53,649,000 | 185,306,000 | |
Share of loss in equity method investments | (1,061,000) | (150,000) | (45,000) | |
Net income | 377,984,000 | 53,499,000 | 185,261,000 | |
Net income attributable to ordinary shareholders of the Company | 377,984,000 | 53,499,000 | 185,261,000 | |
Net income | 377,984,000 | 53,499,000 | 185,261,000 | |
Other comprehensive income: | ||||
Foreign currency translation adjustment, net of nil tax | ¥ 103,471,000 | $ 14,645,000 | ¥ 53,979,000 | |
Net (loss) income per ordinary share | ||||
Basic | (per share) | ¥ 1.71 | $ 0.24 | ¥ 0.88 | |
Diluted | (per share) | ¥ 1.60 | $ 0.23 | ¥ 0.81 | |
Weighted average shares used in calculating net income per share | ||||
Basic | 220,766,682 | 220,766,682 | 210,426,174 | |
Diluted | 236,183,381 | 236,183,381 | 227,784,019 | |
Other comprehensive income, net of tax of nil: | ||||
Comprehensive income | ¥ 481,455,000 | $ 68,144,000 | ¥ 239,240,000 | |
Douyu [Member] | ||||
Net revenues | ||||
Total net revenues | 4,786,187,829 | 677,440,918 | 3,361,852,523 | |
Cost of revenues | (3,777,450,881) | (534,663,470) | (2,857,674,443) | |
Gross profit | 1,008,736,948 | 142,777,448 | 504,178,080 | |
Operating expenses | ||||
Research and development expenses | (187,808,706) | (26,582,597) | (163,824,620) | |
Sales and marketing expenses | (249,414,316) | (35,302,305) | (291,327,691) | |
General and administrative expenses | (164,049,881) | (23,219,754) | (136,802,384) | |
Other operating income, net | 49,032,731 | 6,940,133 | 29,382,140 | |
Total operating expenses | (552,240,172) | (78,164,523) | (562,572,555) | |
Income (loss) from operations | 456,496,776 | 64,612,925 | (58,394,475) | |
Other expenses, net | (18,399,904) | (2,604,337) | (3,878,839) | |
Interest income | 95,150,315 | 13,467,653 | 69,117,932 | |
Gain on disposal of subsidiary | 23,525,694 | 3,329,846 | 0 | |
Foreign exchange gain | 0 | 0 | 32,045,080 | |
Income before income tax expenses | 556,772,881 | 78,806,087 | 38,889,698 | |
Share of income in equity method investments | 17,023,570 | 2,409,530 | 2,417,579 | |
Net income | 573,796,451 | 81,215,617 | 41,307,277 | |
Net loss attributable to noncontrolling interests | 22,698,999 | 3,212,835 | 1,483,810 | |
Net income attributable to ordinary shareholders of the Company | 596,495,450 | $ 84,428,452 | 42,791,087 | |
Net income | ¥ | ¥ 596,495,450 | ¥ 42,791,087 | ||
Net (loss) income per ordinary share | ||||
Basic | (per share) | ¥ 18.73 | $ 2.65 | ¥ 1.53 | |
Diluted | (per share) | ¥ 18.12 | $ 2.56 | ¥ 1.46 | |
Weighted average shares used in calculating net income per share | ||||
Basic | 31,838,618 | 31,838,618 | 8,063,790 | |
Diluted | 32,920,090 | 32,920,090 | 29,343,741 | |
Other comprehensive income, net of tax of nil: | ||||
Foreign currency translation adjustments | ¥ 56,759,271 | $ 8,033,753 | ¥ 6,220,771 | |
Comprehensive income | 630,555,722 | 89,249,370 | 47,528,048 | |
Comprehensive loss attributable to noncontrolling interests | 22,719,336 | 3,215,713 | 1,483,810 | |
Comprehensive income attributable to the ordinary shareholders | ¥ 653,275,058 | $ 92,465,083 | ¥ 49,011,858 | |
ADS [Member] | ||||
Net (loss) income per ordinary share | ||||
Basic | (per share) | [2] | ¥ 1.71 | $ 0.24 | ¥ 0.88 |
Diluted | (per share) | [2] | ¥ 1.60 | $ 0.23 | ¥ 0.81 |
Live Streaming [Member] | ||||
Net revenues | ||||
Total net revenues | ¥ 4,839,547,000 | $ 684,993,000 | ¥ 3,473,967,000 | |
Live Streaming [Member] | Douyu [Member] | ||||
Net revenues | ||||
Total net revenues | ¥ | 4,432,896,655 | 3,062,359,398 | ||
Advertising and Others [Member] | ||||
Net revenues | ||||
Total net revenues | ¥ 269,645,000 | $ 38,166,000 | ¥ 167,972,000 | |
[1] | Share-based compensation was allocated to cost of revenues and operating expenses as follows: For the six months ended June 30,2019 2020 2020 RMB RMB US$ Cost of revenues 8,290 30,587 4,329 Research and development expenses 25,755 71,518 10,123 Sales and marketing expenses 1,811 5,118 724 General and administrative expenses 80,579 110,834 15,688 | |||
[2] | Each ADS represents one Class A ordinary share. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) | 6 Months Ended | |||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | ||
Total net revenues | ¥ 5,109,192,000 | $ 723,159,000 | ¥ 3,641,939,000 | |
Cost of revenues | [1] | 4,059,364,000 | 574,566,000 | 3,032,898,000 |
Research and development expenses | [1] | 335,914,000 | 47,546,000 | 195,455,000 |
Sales and marketing expenses | [1] | 221,056,000 | 31,288,000 | 197,756,000 |
General and administrative expenses | [1] | 230,212,000 | 32,584,000 | 160,139,000 |
Share-based compensation | 218,057,000 | 116,435,000 | ||
Related Parties [Member] | ||||
Total net revenues | 13,404,000 | 4,543,000 | ||
Cost of revenues | 303,392,000 | 187,992,000 | ||
Research and development expenses | 1,535,000 | 3,879,000 | ||
Sales and marketing expenses | 10,597,000 | 2,571,000 | ||
General and administrative expenses | 244,000 | 760,000 | ||
Douyu [Member] | ||||
Total net revenues | 4,786,187,829 | 677,440,918 | 3,361,852,523 | |
Cost of revenues | 3,777,450,881 | 534,663,470 | 2,857,674,443 | |
Research and development expenses | 187,808,706 | 26,582,597 | 163,824,620 | |
Sales and marketing expenses | 249,414,316 | 35,302,305 | 291,327,691 | |
General and administrative expenses | 164,049,881 | 23,219,754 | 136,802,384 | |
Related-party revenues | 7,634,603 | 95,981,036 | ||
Cost of Revenues [Member] | ||||
Share-based compensation | 30,587,000 | 4,329,000 | 8,290,000 | |
Research and Development Expenses [Member] | ||||
Share-based compensation | 71,518,000 | 10,123,000 | 25,755,000 | |
Sales and Marketing Expenses [Member] | ||||
Share-based compensation | 5,118,000 | 724,000 | 1,811,000 | |
General and Administrative Expenses [Member] | ||||
Share-based compensation | ¥ 110,834,000 | $ 15,688,000 | ¥ 80,579,000 | |
[1] | Share-based compensation was allocated to cost of revenues and operating expenses as follows: For the six months ended June 30,2019 2020 2020 RMB RMB US$ Cost of revenues 8,290 30,587 4,329 Research and development expenses 25,755 71,518 10,123 Sales and marketing expenses 1,811 5,118 724 General and administrative expenses 80,579 110,834 15,688 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Shareholders' Equity | CNY (¥)shares | USD ($)shares | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥) | Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | JOYY Inc [Member]CNY (¥) | Douyu [Member]CNY (¥)shares | Douyu [Member]USD ($)shares | Huya 2018 Share Incentive Plan [Member]CNY (¥) | Common Class A [Member]CNY (¥)shares | Common Class A [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥)shares | Common Class B [Member]CNY (¥)shares | Common Class B [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥)shares | Ordinary Shares [Member]Douyu [Member]CNY (¥)shares | Treasury Shares [Member]Douyu [Member]CNY (¥)shares | Additional paid-in capital [Member]CNY (¥) | Additional paid-in capital [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥) | Additional paid-in capital [Member]JOYY Inc [Member]CNY (¥) | Additional paid-in capital [Member]Douyu [Member]CNY (¥) | Additional paid-in capital [Member]Huya 2018 Share Incentive Plan [Member]CNY (¥) | Parent Company deficit [Member]CNY (¥) | Parent Company deficit [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥) | Accumulated deficit [Member]CNY (¥) | Accumulated deficit [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥) | Accumulated deficit [Member]Douyu [Member]CNY (¥) | Accumulated other comprehensive income [Member]CNY (¥) | Accumulated other comprehensive income [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥) | Accumulated other comprehensive income [Member]Douyu [Member]CNY (¥) | Parent [Member]Douyu [Member]CNY (¥) | Noncontrolling Interests [Member]Douyu [Member]CNY (¥) |
Beginning balance at Dec. 31, 2018 | ¥ 5,645,007,000 | ¥ 29,000 | ¥ 104,000 | ¥ 7,667,855,000 | ¥ 34,634,000 | ¥ (2,424,182,000) | ¥ 366,567,000 | ||||||||||||||||||||||
Beginning balance, shares at Dec. 31, 2018 | shares | 44,639,737 | 159,157,321 | |||||||||||||||||||||||||||
Balance at Dec. 31, 2018 | ¥ (3,013,883,487) | ¥ 5,148 | ¥ 48,989,244 | ¥ (3,388,471,092) | ¥ 325,593,213 | ¥ (3,013,883,487) | |||||||||||||||||||||||
Balance, Shares at Dec. 31, 2018 | shares | 8,063,790 | ||||||||||||||||||||||||||||
Noncontrolling interest arising from business acquisition | 5,980,924 | ¥ 5,980,924 | |||||||||||||||||||||||||||
Net income | 185,261,000 | 41,307,277 | 185,261,000 | 42,791,087 | 42,791,087 | (1,483,810) | |||||||||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares (Shares) | shares | 4,800,000 | (4,800,000) | |||||||||||||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares | ¥ 3,000 | ¥ (3,000) | |||||||||||||||||||||||||||
Issuance of ordinary shares | 2,110,066,000 | ¥ 9,000 | 2,110,057,000 | ||||||||||||||||||||||||||
Issuance of ordinary shares, shares | shares | 13,600,000 | ||||||||||||||||||||||||||||
Share-based compensation | ¥ 1,410,000 | 45,212,934 | ¥ 115,025,000 | ¥ 1,410,000 | 45,212,934 | ¥ 115,025,000 | 45,212,934 | ||||||||||||||||||||||
Foreign currency translation adjustments | 6,220,771 | 6,220,771 | 6,220,771 | ||||||||||||||||||||||||||
Issuance of ordinary shares for vested restricted share units (shares) | shares | 35,433 | ||||||||||||||||||||||||||||
Issuance of ordinary shares for exercised share options | ¥ 10,689,000 | ¥ 1,000 | 10,688,000 | ||||||||||||||||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 714,000 | 714,000 | 714,000 | ||||||||||||||||||||||||||
Deemed distribution to JOYY | ¥ (9,278,000) | (9,278,000) | |||||||||||||||||||||||||||
Foreign currency translation adjustment, net of nil tax | 53,979,000 | 53,979,000 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2019 | 8,112,159,000 | ¥ 42,000 | ¥ 101,000 | 9,895,757,000 | 34,634,000 | (2,238,921,000) | 420,546,000 | ||||||||||||||||||||||
Ending balance, shares at Jun. 30, 2019 | shares | 63,789,170 | 154,357,321 | |||||||||||||||||||||||||||
Balance at Jun. 30, 2019 | ¥ (2,915,161,581) | ¥ 5,148 | 94,202,178 | (3,345,680,005) | 331,813,984 | (2,919,658,695) | 4,497,114 | ||||||||||||||||||||||
Balance, Shares at Jun. 30, 2019 | shares | 8,063,790 | ||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2019 | 8,684,850,000 | ¥ 8,681,783,000 | ¥ (3,067,000) | ¥ 44,000 | ¥ 44,000 | ¥ 100,000 | ¥ 100,000 | 10,081,946,000 | ¥ 10,081,946,000 | 64,679,000 | ¥ 64,679,000 | (1,986,054,000) | ¥ (1,989,121,000) | 524,135,000 | ¥ 524,135,000 | ||||||||||||||
Beginning balance, shares at Dec. 31, 2019 | shares | 32,751,819 | 32,751,819 | 67,101,314 | 67,101,314 | 152,357,321 | 152,357,321 | |||||||||||||||||||||||
Balance at Dec. 31, 2019 | ¥ 7,263,363,874 | ¥ 22,144 | ¥ (168,567,125) | 10,324,277,855 | (3,348,717,860) | 434,893,990 | 7,241,909,004 | 21,454,870 | |||||||||||||||||||||
Balance, Shares at Dec. 31, 2019 | shares | 32,751,819 | 291,207 | |||||||||||||||||||||||||||
Net income | 377,984,000 | $ 53,499,000 | 573,796,451 | $ 81,215,617 | 377,984,000 | 596,495,450 | 596,495,450 | (22,698,999) | |||||||||||||||||||||
Share-based compensation | 218,057,000 | 75,703,063 | 218,057,000 | 75,703,063 | 75,703,063 | ||||||||||||||||||||||||
Foreign currency translation adjustments | 56,759,271 | $ 8,033,753 | 56,779,608 | 56,779,608 | (20,337) | ||||||||||||||||||||||||
Repurchase of ordinary shares, Shares | shares | 886,292 | ||||||||||||||||||||||||||||
Repurchase of ordinary shares | (526,530,728) | ¥ (526,530,728) | (526,530,728) | ||||||||||||||||||||||||||
Contribution from shareholder in connection with an acquisition of an equity method investment (Note 4) | 18,767,750 | 18,767,750 | 18,767,750 | ||||||||||||||||||||||||||
Capital contribution from noncontrolling interest shareholder | 73,335,744 | 6,106,145 | 6,106,145 | 67,229,599 | |||||||||||||||||||||||||
Acquisitions of noncontrolling interests | ¥ (4,500,000) | 8,900,238 | 8,900,238 | (13,400,238) | |||||||||||||||||||||||||
Issuance of ordinary shares for vested restricted share units (shares) | shares | 1,347,022 | ||||||||||||||||||||||||||||
Issuance of ordinary shares for vested restricted share units | ¥ 1,000 | (1,000) | |||||||||||||||||||||||||||
Issuance of ordinary shares for exercised share options | ¥ 28,904,000 | ¥ 1,000 | 28,903,000 | ||||||||||||||||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 1,605,752 | 1,605,752 | 1,605,752 | ||||||||||||||||||||||||||
Deemed distribution to JOYY | ¥ (1,013,000) | (1,013,000) | |||||||||||||||||||||||||||
Vesting of restricted share units [shares] | shares | 347,067 | ||||||||||||||||||||||||||||
Vesting of restricted share units [value] | ¥ 244 | (244) | |||||||||||||||||||||||||||
Foreign currency translation adjustment, net of nil tax | 103,471,000 | $ 14,645,000 | 103,471,000 | ||||||||||||||||||||||||||
Ending balance at Jun. 30, 2020 | ¥ 9,409,186,000 | $ 1,331,784,000 | ¥ 46,000 | ¥ 100,000 | ¥ 10,327,892,000 | ¥ 64,679,000 | ¥ (1,611,137,000) | ¥ 627,606,000 | |||||||||||||||||||||
Ending balance, shares at Jun. 30, 2020 | shares | 33,098,886 | 33,098,886 | 70,054,088 | 152,357,321 | |||||||||||||||||||||||||
Balance at Jun. 30, 2020 | ¥ 7,530,695,425 | $ 1,065,900,753 | ¥ 22,388 | ¥ (695,097,853) | ¥ 10,433,754,807 | ¥ (2,752,222,410) | ¥ 491,673,598 | ¥ 7,478,130,530 | ¥ 52,564,895 | ||||||||||||||||||||
Balance, Shares at Jun. 30, 2020 | shares | 33,098,886 | 1,177,499 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 6 Months Ended | |||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | ||||
Cash flows from operating activities | ||||||
Net income | ¥ 377,984,000 | $ 53,499,000 | ¥ 185,261,000 | |||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||
Depreciation of property and equipment | 27,024,000 | 3,825,000 | 20,245,000 | |||
Amortization of acquired intangible assets | 19,622,000 | 2,777,000 | 7,672,000 | |||
Amortization of right-of-use assets | 14,213,000 | 2,012,000 | 11,498,000 | |||
Expected credit loss expenses | 1,429,000 | 202,000 | ||||
Losses on disposal of property and equipment and intangible assets | 282,000 | 40,000 | 3,000 | |||
Share of loss in equity method investments, net of income taxes | 1,061,000 | 150,000 | 45,000 | |||
Other non-cash income | (1,013,000) | (143,000) | (9,278,000) | |||
Deferred income taxes | (52,259,000) | [1] | (7,397,000) | 1,685,000 | [1] | |
Gain on fair value changes of an investment | (2,160,000) | (306,000) | 0 | |||
Short-term investment income | (36,949,000) | (5,230,000) | (10,103,000) | |||
Foreign currency exchange (losses) gains | 2,400,000 | 340,000 | (413,000) | |||
Share-based compensation | 218,057,000 | 30,864,000 | 116,435,000 | |||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | (4,073,000) | (576,000) | (13,112,000) | |||
Prepayments and other assets | 27,048,000 | 3,828,000 | (31,109,000) | |||
Amounts due from related parties | (1,638,000) | (232,000) | 200,272,000 | |||
Amounts due to related parties | 162,701,000 | 23,029,000 | 68,317,000 | |||
Accounts payable | (24,000) | (3,000) | 108,000 | |||
Deferred revenue | (249,358,000) | (35,294,000) | 340,798,000 | |||
Lease liabilities | (13,411) | (1,898) | (10,761) | |||
Advances from customers | (3,742,000) | (530,000) | (6,803,000) | |||
Accrued liabilities and other current liabilities | 102,897,000 | 14,563,000 | 180,092,000 | |||
Income tax payable | 57,172,000 | 8,092,000 | 20,710,000 | |||
Net cash provided by operating activities | 647,263,000 | 91,612,000 | 1,071,562,000 | |||
Cash flows from investing activities | ||||||
Placements of short-term deposits | (5,843,255,000) | (827,059,000) | (6,147,541,000) | |||
Maturities of short-term deposits | 6,394,005,000 | 905,013,000 | 4,304,179,000 | |||
Placements of short-term investments | (900,000,000) | (127,387,000) | (1,240,001,000) | |||
Maturities of short-term investments | 758,602,000 | 107,373,000 | 648,812,000 | |||
Purchase of property and equipment | (18,044,000) | (2,554,000) | (33,429,000) | |||
Purchase of intangible assets | (62,806,000) | (8,890,000) | (911,000) | |||
Cash paid for long-term investments | (49,066,000) | (6,945,000) | (92,944,000) | |||
Proceeds from disposal of property and equipment | 11,000 | 2,000 | 4,000 | |||
Net cash (used in) provided by investing activities | 279,447,000 | 39,553,000 | (2,561,831,000) | |||
Cash flows from financing activities | ||||||
Net proceeds from issuance of ordinary shares upon follow-on public offering | 2,113,336,000 | |||||
Proceeds from exercise of vested share options | 18,364,000 | 2,599,000 | 10,683,000 | |||
Net cash provided by financing activities | 18,364,000 | 2,599,000 | 2,124,019,000 | |||
Net increase in cash, cash equivalents and restricted cash | 945,074,000 | 133,764,000 | 633,750,000 | |||
Cash and cash equivalents and restricted cash at the beginning of the period | 1,114,585,000 | 157,759,000 | 709,019,000 | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 9,040,000 | 1,282,000 | 6,304,000 | |||
Cash and cash equivalents at the end of the period | 2,068,699,000 | 292,805,000 | 1,349,073,000 | |||
Supplemental disclosure of cash flows information | ||||||
—Income tax paid | 91,954,000 | 13,015,000 | 18,205,000 | |||
—Acquisition of property and equipment in form of accounts payable | (34,607,000) | (4,898,000) | (17,834,000) | |||
Reconciliation of cash, cash equivalents and restricted cash | ||||||
Cash and cash equivalents | 2,062,524,000 | |||||
Restricted cash | 6,175,000 | |||||
Douyu [Member] | ||||||
Cash flows from operating activities | ||||||
Net income | 573,796,451 | 81,215,617 | 41,307,277 | |||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||
Depreciation of property and equipment | 10,850,712 | 1,535,819 | 17,295,290 | |||
Loss from the disposal of intangible assets | 550,590 | 77,931 | 0 | |||
Amortization of intangible assets | 44,224,845 | 6,259,621 | 24,469,529 | |||
Non-cash operating lease expenses | 22,226,731 | 3,145,990 | 0 | |||
Loss on the disposal of property and equipment | 0 | 0 | 57,755 | |||
Provision (reversal) for allowance for doubtful accounts | (1,339,850) | (189,643) | 3,181,999 | |||
Share of income in equity method investments | (17,023,570) | (2,409,530) | (2,417,579) | |||
Gain on disposal of a subsidiary | (23,525,694) | (3,329,846) | 0 | |||
Impairment loss of investments | 19,417,065 | 2,748,307 | 3,790,443 | |||
Unrealized gain from investment in equity investee | (8,571,429) | (1,213,207) | 0 | |||
Share-based compensation | 75,703,063 | 10,715,073 | 45,212,934 | |||
Foreign exchange gain | 0 | 0 | (32,045,080) | |||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 17,935,292 | 2,538,575 | (87,264,987) | |||
Prepayments | (58,868,678) | (8,332,321) | 39,489,183 | |||
Other current assets | 24,615,367 | 3,484,079 | (180,624,628) | |||
Other non-current assets | (8,623,957) | (1,220,642) | 0 | |||
Amounts due from related parties | 7,051,983 | 998,143 | (8,088,946) | |||
Amounts due to related parties | (34,767,137) | (4,920,969) | 73,782,691 | |||
Accounts payable | 188,893,545 | 26,736,146 | 322,339,402 | |||
Deferred revenue | (19,320,767) | (2,734,677) | 46,306,745 | |||
Lease liabilities | (12,754,636) | (1,805,302) | 0 | |||
Advances from customers | (3,719,585) | (526,473) | 10,470,785 | |||
Accrued liabilities and other current liabilities | (43,728,313) | (6,189,341) | (9,241,209) | |||
Net cash provided by operating activities | 753,022,028 | 106,583,350 | 308,021,604 | |||
Cash flows from investing activities | ||||||
Purchase of property and equipment | (6,461,642) | (914,586) | (10,922,856) | |||
Purchase of intangible assets | (58,860,589) | (8,331,176) | (64,514,870) | |||
Payment for investments | (231,191,900) | (32,723,090) | (12,600,000) | |||
Proceeds from disposal of property and equipment | 95,109 | 13,462 | 112,644 | |||
Payment for short-term bank deposits | (1,696,695,000) | (240,151,590) | 0 | |||
Purchases of short-term investments | (2,709,000,000) | (383,464,064) | (1,075,000,000) | |||
Proceeds from disposal of short-term investments | 2,609,000,000 | 369,279,982 | 1,075,000,000 | |||
Proceeds from disposal of intangible assets | 1,455,423 | 206,002 | 0 | |||
Proceeds from disposal of a subsidiary | 50,543,501 | 7,153,968 | 0 | |||
Payment for business acquisition, net of cash acquired | 0 | 0 | (11,012,762) | |||
Loans to related parties | (10,000,000) | (1,415,408) | (5,000,000) | |||
Repayment of loan to related parties | 10,089,244 | 1,428,040 | 714,286 | |||
Net cash (used in) provided by investing activities | (2,041,025,854) | (288,888,460) | (103,223,558) | |||
Cash flows from financing activities | ||||||
Payment of IPO offering costs | 0 | 0 | (10,153,625) | |||
Acquisition of noncontrolling interest | (4,500,000) | (636,934) | 0 | |||
Proceeds from capital contribution from noncontrolling interest shareholder | 73,335,744 | 10,380,001 | 0 | |||
Repurchase of ordinary shares | (579,824,528) | (82,068,835) | 0 | |||
Settlement of redemption liability to a preferred shareholder in connection with 2018 Restructuring | [2] | 0 | 0 | (1,323,049,149) | ||
Repayment of advance from related party | 0 | 0 | (39,995,000) | |||
Cash used in financing activities | (510,988,784) | (72,325,768) | (1,373,197,774) | |||
Effect of foreign exchange rate changes on cash and cash equivalents | 56,297,574 | 7,968,405 | 6,191,177 | |||
Net increase in cash, cash equivalents and restricted cash | (1,742,695,036) | (246,662,473) | (1,162,208,551) | |||
Cash, cash equivalent and restricted cash at the beginning of the period | 8,134,892,989 | 1,151,419,370 | 5,562,204,889 | |||
Cash, cash equivalent and restricted cash at the end of the period | 6,392,197,953 | 904,756,897 | 4,399,996,338 | |||
Supplemental disclosure on non-cash investing and financing activities: | ||||||
Deferred offering costs payable | 0 | 0 | 26,095,859 | |||
Payable for purchases of property and equipment | 0 | 0 | 5,670,592 | |||
Reconciliation of cash, cash equivalents and restricted cash | ||||||
Cash and cash equivalents | 6,381,495,234 | 4,399,996,338 | ||||
Restricted cash | 10,702,719 | 0 | ||||
Cash, cash equivalent and restricted cash at the end of the period | ¥ 6,392,197,953 | $ 904,756,897 | ¥ 4,399,996,338 | |||
[1] | The deferred income tax benefits for the six months ended June 30, 2020 represented mainly the deferred tax related to unrealized losses arisen from intercompany transactions. | |||||
[2] | In May 2018, as an integrated step of the 2018 Restructuring, in order to comply with certain PRC foreign currency control rules and regulations, Beijing Sequoia has to redeem its investment in Series A Preferred Equity in Wuhan Douyu for US$197,443,500 from Wuhan Douyu and the redemption amount in full is to be reinvested to the Company as capital contribution. The redemption amount, equivalent to RMB1,323,049,149, has been paid by Wuhan Douyu in first half year of 2019. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - May 31, 2018 | USD ($) | CNY (¥) |
Douyu [Member] | ||
Proceeds from redemption of preferred equity investment settled | $ 197,443,500 | ¥ 1,323,049,149 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Jun. 30, 2020 | |
Organization and Principal Activities | 1. Organization and principal activities (a) Organization and principal activities HUYA Inc. (“Huya” or the “Company”, also refer to Huya’s consolidated operating entities, where appropriate) is a holding company incorporated in Cayman Islands on March 30, 2017 and conducts its business through its subsidiaries, VIE and VIE’s subsidiaries (“VIEs”, also refer to VIE and its subsidiaries as a whole, where appropriate) (collectively, the “Group”) in the People’s Republic of China (the “PRC”). The Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. The primary theme of the Group’s platforms is game live streaming. The Group has also extended themes to life and entertainment topics beyond games to cater to the Group’s users’ growing entertainment demands. In providing these services, the Group has cooperated with talent agencies in broadcaster recruitment, live streaming training and support, promotion strategies development and content management and discipline under the Group’s guidance and supervision. Company generates the majority of its revenue from sales of virtual items in live streaming platforms as well as other services, which substantially consist of advertising and online game-related services. Before April 3, 2020, the Company was a subsidiary of JOYY Inc. (“JOYY”, refer to JOYY Inc. or JOYY’s consolidated operating entities, where appropriate). On April 3, 2020, JOYY transferred 16,523,819 Class B ordinary shares of Huya to Linen Investment Limited, a wholly-owned subsidiary of Tencent Holding Limited. (the “Parent Company” or “Tencent”, also refer to Tencent Holding Limited. or Tencent’s consolidated operating entities, where appropriate). Upon the closing of the share transfer, Tencent’s voting power in Huya has been increased to 50.1% on a fully-diluted basis, or 50.9% calculated based on the total issued and outstanding shares of Huya, and then Huya becomes the subsidiary of Tencent. (b) Public Offering The Company completed its IPO in May 2018, issued and sold a total of 17,250,000 American Depositary shares (“ADSs”) for a total consideration of US$175.7 million after deducting the underwriting discounts and commissions and offering expenses. In April 2019, the Company completed a follow-on (c) Principal subsidiaries and VIEs The details of the principal subsidiaries and VIE through which the Company conducts its business operations as of June 30, 2020 are set out below: Name Place of Date of % of direct Principal activities Wholly foreign-owned enterprise (“WFOE”) Huya Limited Hong Kong January 4, 2017 100 % Investment holding Guangzhou Huya Technology Co., Ltd. (“Huya Technology”) PRC June 16, 2017 100 % Software development HUYA PTE. LTD. Singapore July 23, 2018 100 % Internet value added Hainan Huya Entertainment Information Technology Co., Ltd. (“Hainan Huya”) PRC December 4, 2019 100 % Internet value added VIE Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 100 % Internet value added |
Douyu [Member] | |
Organization and Principal Activities | 1. Organization and principal activities DouYu International Holdings Limited (the “Company” or “DouYu International”) was incorporated under the laws of Cayman Islands on January 5, 2018. The Company, its subsidiaries and its variable interest entities (collectively referred to as the “Group”) operate platform on PC and mobile apps, through which users can enjoy immersive and interactive gaming and entertainment live streaming. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Apart from the adoption of ASU No. 2016-13, The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect the recorded amounts reported therein. A change in facts or circumstances surrounding the estimate could result in a change to estimates and impact future operating results. The unaudited condensed consolidated financial statements and related disclosures have been prepared with the presumption that users of the unaudited condensed consolidated financial statements have read or have accessed to the audited consolidated financial statements as of December 31, 2019 and for the period ended December 31, 2019. The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. GAAP. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of December 31, 2019 and for the period ended December 31, 2019. (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Huya Technology and ultimately the Company hold all the variable interests of the VIEs and has been determined to be the primary beneficiary of the VIEs. (c) Use of estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, related disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of multiple element revenue contracts, income taxes, tax considerations for earnings retained in the Group’s VIEs, and subsequent adjustment due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its unaudited condensed consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong, Cayman Islands and Singapore is United States dollar (“US$”), while the functional currency of the Group’s entities in PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB7.0651 on June 30, 2020 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. (f) Statutory reserves The Group did not make any appropriation to its general reserve fund, statutory surpluses fund, discretionary surplus fund, and the staff bonus and welfare fund for the six months ended June 30, 2019 and 2020, respectively. (g) Segment reporting The Group’s chief operating decision maker has been identified as its Chief Executive Officer (“CEO”), who reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. Therefore, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The Group’s long-lived assets are substantially all located in the PRC and substantially all of the Group’s revenues are derived from the PRC. Therefore, no geographical segments are presented. (h) Revenue Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The following table disaggregates the Group’s revenue by major type for the period ended June 30, 2019 and 2020: For the six months ended 2019 2020 RMB RMB Live streaming 3,473,967 4,839,547 Advertising and others 167,972 269,645 Total 3,641,939 5,109,192 Revenue recognition and significant judgments (i) Live streaming The Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. It generates revenue from sales of virtual items in the platforms. The Group has a recharge system for users to purchase the Group’s virtual currency then purchase virtual items for use. Users can recharge via various online third-party payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid to broadcasters and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined and consumed by them, while revenue related to time-based virtual items provided on a subscription basis is recognized ratably over the contract period. The Group does not have further performance obligations to the user after the virtual items are consumed immediately or after the stated contract period of time for time-based items. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as Huya Noble Member Program. Determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The contract of Huya Noble Member Program, which is normally purchased on a monthly basis, includes three major virtual items, a) the noble member status, b) the virtual currency coupons, and c) the right of subsequent renewal at a discounted price, which are considered distinct and accounted for separately under ASC 606. A noble member status itself cannot be purchased on a standalone basis, and it is used for one month but the users can simultaneously purchase multiple months of the package (with effective period of noble member status limited to a maximum of 24 months from date of purchase) at any point in time. The virtual currency coupons, which have the same purchase power as the Group’s virtual currency but with expiry dates, is valid to purchase virtual items for a fixed period. Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. In instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, such as the noble member status and the virtual currency coupons, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. In respect of the right of subsequent renewal at a discounted price, the Group estimates individual user’s times of renewal based on historical data of users’ spending pattern and average times of renewal. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue allocated to noble member status, it is generally recognized ratably over the contract period as users simultaneously consume and receive benefits. For revenue related to virtual currency coupons provided on a consumption basis, virtual currency coupons used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed above unless otherwise stated. Although the virtual currency coupons have expiry dates, the Group considers the impact of the breakage amount for virtual currency coupons insignificant as historical data shows that virtual currency coupons are consumed shortly after they are released to users and the forfeiture rate remains relatively low for the periods reported, therefore, the Group does not expect to be entitled to a breakage amount for the virtual currency coupons. For the right of subsequent renewal at a discounted price, upon each time a subsequent renewal is purchased, the cash received is recorded as deferred revenue and allocated proportionally to the noble member status and virtual currency coupons based on their relative standalone selling price and revenue is then recognized following the revenue recognition method of noble member status and virtual currency coupons as described above respectively. As the Group’s live streaming virtual items are generally sold without right of return and the Group does not provide any other credit and incentive to its users, accounting of variable consideration when estimating the amount of revenue to recognize is not applicable to the Group’s live streaming business. (ii) Advertising The Group generates advertising revenues primarily from sales of various forms of advertising and promotion campaigns, including (i) display advertisements in various areas of our platform, (ii) native advertisements in cooperation with broadcasters, and (iii) game events advertising and campaigns. Advertisements on the Group’s platforms are generally charged on the basis of duration. Advertising contracts are signed to establish the fixed price and the advertising services to be provided. Where the service is transferred to customers, revenues from advertising contracts are recognized ratably over the contract period of display. The Group enters into advertising contracts directly with advertisers or third-party advertising agencies that represent advertisers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 3 months. Both third-party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. In instances where the timing of revenue recognition differs from the timing of billing, the Group has determined the advertising contracts generally do not include a significant financing component. The primary purpose of the credits terms is to provide customers with simplified and predictable ways of purchasing the Group’s advertising services, not to receive financing from its customers or to provide customers with financing. Certain customers may receive sales incentives in the forms of discounts and rebates to advertisers or advertising agencies based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. For the six months ended June 30, 2019 and 2020, the amounts of discounts and rebates to advertising customers were RMB20,986 and RMB44,324, respectively. The Group believes that there will not be significant changes to its estimates of variable consideration. (iii) Online game revenues The Group generates revenues from offering virtual items in online games developed by the Group itself or third parties to game users. The Group has a recharge system for game user to purchase game tokens for use. Game user can recharge via various online third-party payment platforms, including WeChat Pay, AliPay and other payment platforms. Game tokens are non-refundable The majority of online games revenues were derived from the Group’s self-developed games for the periods presented. With respect to the game operation contracts entered into between the Group and distribution platforms for co-publishing on-going Users play games free of charge and are charged for purchases of virtual items mainly including consumable and perpetual items, which can be utilized to enhance users’ game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online games. The Group maintains information on consumption details of in-game in-game The estimated user relationship period is based on data collected from those game users who have purchased game tokens. The Group maintains a system that captures the following information for each game user: (a) the frequency that game users log into each game, and (b) the amount and the timing of when the game users charge his or her game token. The Group estimates the user relationship period for a particular game to be the date a user purchases a game token through the date the Group estimates the game user plays the game for the last time. This computation is completed on a user by user basis. Then, the results for all analyzed users are averaged to determine an estimated end user relationship period for each game. Revenues from in-game The determination of user relationship period is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. The Group assesses the estimated user relationships on a monthly basis. Any adjustments arising from changes in the user relationship as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections. Contract balances The Group collects accounts receivable from various online payment platforms, distribution platforms and advertising customers. The opening balance of accounts receivable from third-party and related party payment platforms were RMB30,507 and RMB239,290, respectively, as of January 1, 2019. As of December 31, 2019 and June 30, 2020, accounts receivable from third-party payment platforms were RMB43,339 and RMB50,901, respectively, and accounts receivable from related parties as payment platforms were RMB31,261 and RMB23,118, respectively. The opening balance of accounts receivable from third-party distribution platforms as of January 1, 2019 was RMB2,941. As of December 31, 2019 and June 30, 2020, accounts receivable from third-party distribution platforms were RMB3,978 and RMB5,625, respectively. No accounts receivable was from related party distribution platforms as of January 1, 2019, and the balance of accounts receivable from a related party as distribution platform was RMB687 and RMB670, as of December 31, 2019 and June 30, 2020. The opening balance of accounts receivable from third-party advertising customers and related party advertising customers were RMB11,323 and RMB5,926, respectively, as of January 1, 2019. As of December 31, 2019 and June 30, 2020, accounts receivable from third-party advertising customers were RMB15,313 and RMB10,175, respectively. The balance of accounts receivable from a related party was RMB2,994 and RMB4,541, as of December 31, 2019 and June 30, 2020, respectively. Contract liabilities primarily consists of deferred revenue for unconsumed virtual items and unamortized revenue from virtual items in the Group’s platforms, where there is still an obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met. The opening balance of deferred revenue related to live streaming business as of January 1, 2019 was RMB543,245. As of December 31, 2019 and June 30, 2020, deferred revenue related to live streaming business were RMB951,166 and RMB699,716, respectively. During the six months ended June 30, 2019 and 2020, the Group recognized revenue of live streaming business amounted to RMB425,536 and RMB679,485, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. The opening balance of deferred revenue related to online game business as of January 1, 2019 was RMB6,867. As of December 31, 2019 and June 30, 2020, deferred revenue related to online game business were RMB8,752 and RMB10,844, respectively. During the six months ended June 30, 2019 and 2020, the Group recognized revenue of online game business amounted to RMB6,867 and RMB8,752, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. During the six months ended June 30, 2019 and 2020, the Group does not have any arrangement where the performance obligations have already been satisfied in the past period, but the corresponding revenue is only recognized in a later period. (i) Investment Equity Investments without Readily Determinable Fair Values The Company elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and Equity Investments Accounted for Using the Equity Method (continued) other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. (j) Share-based compensation Share-based compensation expense arises from share-based awards, including restricted share units granted by JOYY with its own underlying shares to certain management and other key employees who to some extent provide services to the Group (“JOYY’s Share-based Awards”), share options for the purchase of Huya’s ordinary shares and Huya’s restricted share units, granted by the Group to its management, key employees and non-employees JOYY’s Share-based Awards In determining the fair value of restricted share units granted, the fair value of the underlying shares of JOYY on the grant dates is applied. The grant date fair value of restricted share units is based on stock price of JOYY in the NASDAQ Global Market. Share-based compensation expense for restricted share units granted under JOYY share-based incentive plans is recognized using the graded vesting method, net of estimated forfeiture rates, over the requisite service period, which is generally the vesting period. Forfeitures are estimated at the time of grant based on historical forfeiture rates and will be revised in the subsequent periods if actual forfeitures differ from those estimates. Huya’s share options After the listing of the Company, the grant date fair value of share options is based on stock price of the Company’s ordinary share in NYSE minus the respective exercise price. Share-based compensation expense for share options granted to employees is measured based on their grant-date fair values and recognized over the requisite service period, which is generally the vesting period. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and the related compensation expense is not recorded for the number of awards so estimated. Huya’s restricted share units Fair value of restricted share units (“RSUs”) is determined with reference to the fair value of the underlying shares. After the completion of IPO, the fair value of restricted share units is determined with reference to stock price of Huya in NYSE. (k) Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 The Company categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessee to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. (l) Recently issued accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, In January 2020, the FASB issued ASU No. 2020-01, In March 2020, the FASB issued ASU No. 2020-04, |
Douyu [Member] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies 2.1 Basis of Presentation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘US GAAP’’) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim financial statements should be read in conjunction with the Group’s condensed consolidated financial statements as of and for the years ended December 31, 2018 and 2019. 2.2 Basis of Consolidation The condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs. All transactions and balances among the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. The Company, through its wholly-owned foreign invested subsidiary, WFOE in the PRC, entered into a series of contractual arrangements (“VIE agreements”) with Wuhan Douyu Network Technology Co., Ltd. (‘‘Wuhan Douyu’’) and Wuhan Ouyue Online TV Co., Ltd. (‘‘Wuhan Ouyue’’) (collectively known as “the VIEs”) and their respective shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Applicable PRC laws and regulations currently limit foreign ownership of companies that provide internet valued-added businesses. The Company is deemed a foreign legal person under PRC laws and accordingly subsidiaries owned by the Company are not eligible to engage in provisions of internet content or online services. The Group therefore operates its business, primarily through the VIEs and the subsidiaries of the VIEs. The following financial statement amounts and balances of the VIEs were included in the accompanying condensed consolidated financial statements after elimination of intercompany transactions and balances: As of December 31, 2019 As of June 30, 2020 RMB RMB ASSETS Cash and cash equivalents 826,481,128 1,038,051,244 Restricted cash 42,902,719 10,702,719 Short-term bank deposits — 210,000,000 Short-term investments — 100,000,000 Accounts receivable, net 176,599,681 145,180,777 Prepayments 12,982,856 86,910,348 Amount due from related parties 13,431,477 14,506,399 Other current assets 82,405,807 110,159,776 Property and equipment, net 17,794,907 13,471,546 Intangible assets, net 130,272,386 141,176,528 Right-of-use — 45,952,175 Investments 147,033,947 326,144,439 Other non-current 1,918,598 4,654,226 Total Assets 1,451,823,506 2,246,910,177 LIABILITIES Accounts payable 794,266,492 1,003,180,314 Advances from customers 16,975,882 9,063,666 Deferred revenue 181,250,993 169,300,598 Accrued expenses and other current liabilities 177,228,742 145,075,307 Amounts due to related parties 59,693,186 246,941,064 Lease liabilities — 43,926,131 Total Liabilities 1,229,415,295 1,617,487,080 Six Months ended June 30, 2019 2020 RMB RMB Net revenue 3,334,443,811 4,733,053,396 Net income 435,102,934 890,624,128 Six Months ended June 30, 2019 2020 RMB RMB Net cash provided by operating activities 81,657,219 692,412,433 Net cash used in investing activities (14,473,970 ) (513,042,317 ) Net cash used in provided by financing activities (1,363,044,149 ) — The VIEs contributed 99% of the Group’s consolidated revenue for the six months ended June 30, 2019 and 2020. As of December 31, 2019 and June 30, 2020, the VIEs accounted for an aggregate of 16% and 24% of the consolidated total assets, 67% and 82% of the consolidated total liabilities, respectively. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs were ever to need financial support, the Group may provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. The Group believes that there are no assets held in the VIEs that can be used only to settle obligations of the VIEs. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its registered capital, to the Company in the form of loans and advances or cash dividends. 2.3 Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Group’s condensed consolidated financial statements include revenue recognition, share-based compensation, realization of deferred tax assets, impairment of investment, and allowance for credit loss. 2.4 Foreign currency translation The functional currency of the Company is in US dollars (“US$”). The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Translation gains and losses are recognized in the consolidated statements of comprehensive income. The Group’s reporting currency is Renminbi (“RMB”). For entities within the Group that have a functional currency other than the reporting currency, assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a component of other comprehensive income in the statements of comprehensive income and the consolidated statements of change in shareholders’ equity (deficit). 2.5 Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 — Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2 — Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3 — Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The Group measures its financial assets and liabilities including cash and cash equivalents, restricted cash, short-term bank deposits, short-term investments, accounts receivable, amount due from related parties, other current assets, accounts payable, amounts due to related parties and accrued expenses and other current liabilities at fair value which are approximates their cost due to the short-term nature of these assets and liabilities. The Group measures equity method investments at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments are determined based on valuation techniques using the best information available, and may include future performance projections, discount rate and other assumptions that are significant to the measure of fair value. An impairment charge to these investments is recorded when the carry amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group recognized impairment losses of RMB3,790,443 and nil related to equity method investments for the six months ended June 30, 2019 and 2020, respectively. Beginning January 1, 2019, the Group’s equity investments without readily determinable fair values, which do not qualify for NAV practical expedient and over which the Group does not have the ability to exercise significant influence through the investments in common stock or in substance common stock, are accounted for under the measurement alternative upon the adoption of Accounting Standards Update (“ASU”) 2016-01 “Recognition and Measurement of Financial Assets and Liabilities” (the “Measurement Alternative”). Under the Measurement Alternative, the carrying value is measured at cost, less any impairment, plus and minus changes resulting from observable price changes in orderly transactions for identical or similar investments. The Group recognized an unrealized gain of nil and RMB8,571,429 as a result of an observable price change event for the six months ended June 30, 2019 and 2020, respectively. The Group recognized impairment losses of nil and RMB19,417,064 related to equity investments without readily determinable fair values for the six months ended June 30, 2019 and 2020, respectively. 2.6 Convenience Translation into United States Dollars Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income and consolidated statements of cash flows from RMB into United States dollars are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB7.0651 on June 30, 2020, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on June 30, 2020, or at any other rate. 2.7 Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the historical carrying amount net of allowance for credit loss. On January 1, 2020, the Group adopted ASU No. 2016-13 2016-13 2.8 Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of business acquired. Several factors give rise to goodwill in the Group’s acquisitions, such as the expected benefit from the existing workforce and client service capability of the acquired business. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. Prior to January 1, 2020, the Group performed a two-step 2017-04, accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step two to measure the impairment loss. For the six months ended June 30, 2019 and 2020, no impairment charge was recognized on goodwill. 2.9 Revenue recognition On January 1, 2019, the Group adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under Topic 605. Based on the Group’s assessment, the adoption of ASC 606 did not have any material impact to the Group’s condensed consolidated financial statements. The following table disaggregates the Group’s revenue by major type for the six months ended June 30, 2019 and 2020, respectively: Six Months ended June 30, 2019 2020 RMB RMB Live streaming 3,062,359,398 4,432,896,655 Advertisement 209,354,384 300,630,398 Other 90,138,741 52,660,776 Total 3,361,852,523 4,786,187,829 Live streaming The Group is principally engaged in operating its own live streaming platforms, which enable streamers and users to interact with each other during live streaming. The users have the option to purchase virtual currency, which is non-refundable The Group has evaluated and determined that it is the principal and views the users to be its customers. Specifically, the Group controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to the users for the delivery of the virtual items as well as having full discretion in establishing pricing for the virtual items. Accordingly, the Group reports its live streaming revenue on a gross basis with amounts billed to users for the virtual items recorded as revenues and the revenue sharing fee paid to streamers or talent agencies recorded as cost of revenues. Sales proceeds are initially recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. The Group has determined that the virtual items represent one performance obligation in the live streaming service. Revenue related to each of the consumable items is recognized at the point in time when the virtual gifts is transferred directly to the streamers and consumed by them, while revenue related to time-based items is recognized ratably over a fixed period on a straight line basis. Although some virtual items have expiry dates, the Group considers that the impact of breakage for the virtual items is insignificant as historical data shows that virtual items are consumed shortly after they are released to users and the forfeiture rate remains relatively low for the periods presented. The Group does not have further performance obligations to the user after the virtual items are consumed. Virtual items may be sold individually or bundled into one arrangement. When the Group’s users purchase multiple virtual items bundled within the same arrangement, the Group allocates the total consideration to each distinct virtual item based on their relative standalone selling prices. In instances where standalone selling price is not directly observable as the Group does not sell the virtual items separately, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. The Group recognizes revenue for each of the distinct virtual item in accordance with the revenue recognition method discussed above unless otherwise stated. Advertisement The Group generates advertisement revenues from rendering of various forms of advertisement services and provision of promotion campaigns on the live streaming platforms by way of advertisement display or integrated promotion activities in shows and programs on the live streaming platforms. Advertisements on the Group’s platforms are generally charged on the basis of duration whereby revenue is recognized ratably over the contract period of display. The Group provides sales incentives in the forms of discounts and rebates to advertisers or advertisement agencies based on purchase volume. Revenue is recognized based on the price charged to the advertisers or agencies, net of sales incentives provided to the advertisers or agencies. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience. For the six months ended June 30, 2019 and 2020, the rebates recorded by the Group were RMB27,326,465 and RMB33,329,604, respectively. Other revenue Other revenue mainly consists of game distribution revenue. Online games developed by third party game developers are displayed through the Group’s platforms to attract users to download and play the games. The Group earns revenues from game developers in accordance with the pre-determined Contract balances Contract balances include accounts receivable, advances from customers and deferred revenue. Accounts receivable represent cash due from third-party application stores as well as from advertising customers and are recorded when the right to consideration is unconditional. The allowance for doubtful accounts reflects the best estimate of probable losses inherent to the account receivable balance. Advances from customers primarily represent cash received from the Group’s advertisement customers. Deferred revenue primarily includes cash received from paying users related to the Group’s live streaming service. Deferred revenue is recognized as revenue when all of the revenue recognition criteria have been met or over the estimated service period. Revenue recognized in the six months ended June 30, 2020 that was included in the deferred revenue balance as of January 1, 2020 was RMB182,819,528. Accounts Advances Deferred RMB RMB RMB Opening Balance as of January 1, 2020 188,099,873 17,134,532 182,819,528 Net change (27,489,397 ) (3,859,585 ) (13,518,930 ) Ending Balance as of June 30, 2020 160,610,476 13,274,947 169,300,598 2.10 Operating leases as lessee The Group leased offices under operating leases. On January 1, 2020, the Group adopted ASU No. 2016-02, Under the new lease accounting standard, the Group determines if an arrangement is a lease or contains a lease at lease inception. The Group measure the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which was computed using the Group’s incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term when the lessor makes the underlying asset available to the Group. RMB100,318,025 of lease assets and RMB81,851,982 of liabilities were recognized on the balance sheet upon adoption as of January 1, 2020. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 3. Cash and cash equivalents Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, and all highly liquid investments with maturities of three months or less. Cash and cash equivalents balance as of December 31, 2019 and June 30, 2020 primarily consist of the following currencies: December 31, 2019 June 30, 2020 Amount RMB equivalent Amount RMB equivalent RMB 475,991 475,991 945,832 945,832 US$ 88,716 618,902 152,759 1,081,460 SGD 3,537 18,300 6,685 33,967 Others (i) — — 1,275 1,265 Total 1,113,193 2,062,524 (i) As of June 30, 2020, the other currencies consist of Hong Kong dollar, Brazilian real and Thai Baht. |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2020 | |
Douyu [Member] | |
Other current assets | 3. Other current assets Other current assets consist of the following: As of 2019 As of June 30, 2020 RMB RMB Interest receivable 53,484,027 29,565,595 Value-added tax recoverable 62,336,003 29,319,498 Funds receivable from third party payment service provider (1) 69,263,440 64,801,248 Content rights 10,589,085 42,152,026 Others 8,637,038 12,905,239 Total 204,309,593 178,743,606 (1) The Group opened accounts with external online payment service providers to collect funding from users. |
Restricted cash
Restricted cash | 6 Months Ended |
Jun. 30, 2020 | |
Restricted Cash and Cash Equivalents, Current [Abstract] | |
Restricted cash | 4. Restricted cash Restricted cash represents deposits that was restricted for litigation. The deposits which was restricted cannot be withdrawn until the preservation of property has been lift. As of December 31, 2019 and June 30, 2020, the Group’s restricted cash were RMB1,392 and RMB6,175, respectively. |
Short-Term Deposits
Short-Term Deposits | 6 Months Ended |
Jun. 30, 2020 | |
Deposits [Abstract] | |
Short-Term Deposits | 5. Short-term deposits Short-term deposits represent time deposits placed with banks with maturities of less than one year. Short-term deposits as of December 31, 2019 and June 30, 2020 primarily consist of the following currencies: December 31, 2019 June 30, 2020 Amount RMB equivalent Amount RMB equivalent RMB 500,000 500,000 1,130,000 1,130,000 US$ 894,964 6,243,445 728,101 5,154,593 Total 6,743,445 6,284,593 |
Short-Term Investments
Short-Term Investments | 6 Months Ended |
Jun. 30, 2020 | |
Short-term Investments [Abstract] | |
Short-Term Investments | 6. Short-term investments Short-term investments represent wealth management products with maturities of less than one year. Short-term investments as of December 31, 2019 and June 30, 2020 primarily consist of the following currencies: December 31, 2019 June 30, 2020 Amount RMB equivalent Amount RMB equivalent RMB 2,211,055 2,211,055 2,398,004 2,398,004 US$ 1,215 8,476 — — Total 2,219,531 2,398,004 |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 7. Accounts receivable, net December 31, June 30, 2019 2020 RMB RMB Accounts receivable, gross 62,630 66,701 Less: expected credit loss provision (922 ) (3,215 ) Accounts receivable, net 61,708 63,486 The Group’s accounts receivable and other receivables are within the scope of ASC Topic 326. 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 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 historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include customer demographics, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. The following table presents the activity in the expected credit loss provision related to accounts receivable, net for the six months ended June 30, 2020: For the six months 2020 RMB Balance as at December 31, 2019 922 Adoption of ASC Topic 326 3,122 Balance as at January 1, 2020 4,044 Current period provision 846 Current period reversal (1,675 ) Balance as at June 30, 2020 3,215 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 6 Months Ended |
Jun. 30, 2020 | |
Prepayments And Other Current Assets [Abstract] | |
Prepayments and Other Current Assets | 8. Prepayments and other current assets December 31, June 30, 2019 2020 RMB RMB Prepayments to vendors and content providers 184,744 193,074 Input value-added tax to be deducted 2,059 75,297 Interests receivable 168,739 56,010 Receivables from exercise of vested share options 9,475 20,015 Prepayments to third-party payment platform 7,912 14,613 Loan to a third party 10,000 10,000 Others 17,686 40,052 Less: expected credit loss provision — (572 ) Total 400,615 408,489 The following table presents the activity in the expected credit loss provision related to other receivables for the six months ended June 30, 2020: For the six months 2020 RMB Balance as at December 31, 2019 — Adoption of ASC Topic 326 308 Balance as at January 1, 2020 308 Current period provision 355 Current period reversal (91 ) Balance as at June 30, 2020 572 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments | 9. Investments December 31, June 30, 2019 2020 RMB RMB Equity method investments 203,730 203,633 Equity investments without readily determinable fair values (i) 175,694 226,918 379,424 430,551 (i) During the six months ended June 30, 2020, the Company acquired equity interests of two privately-held entities with a total consideration of RMB 49,065 The Company has neither significant influence nor control in these investees. These equity investments are not considered as debt securities or equity securities that have readily determinable fair values. Accordingly, the Company elected to account for these investments at cost less impairments, adjusted by observable price changes. |
Douyu [Member] | |
Investments | 4. Investments Equity method investments: As of 2019 As of June 30, 2020 RMB RMB Hangzhou Aijidi Culture Creation Co., Ltd. 4,090,990 3,943,536 Chongqing Yuwan Network Media Co., Ltd. 9,721,472 12,197,828 Hunan Yuyou Starfire Culture Media Co., Ltd. 15,139,902 14,071,419 Wuhan Shayu Network Technology Co., Ltd.(“Shayu”) (1) — 203,545,159 Others (2) 3,849,736 — 32,802,100 233,757,942 (1) In 2016, the Group invested RMB10 million for 8.5% equity interest in Shayu, a live streaming platform in PRC and accounted for this investment as an equity security without a readily determinable fair value. In May 2020, to restructure and increase its investment in Shayu, the Group completed the following transactions: • The Group acquired 19.125% equity interest in Shayu from Mr. Chen Shaojie, the Group’s CEO and shareholder for a cash consideration of RMB24,850,000. The purchase price paid by the Group was below fair value of the acquired equity interest, which is determined to be RMB43,617,750 by the Group with the assistance of an independent valuer. The excess amount of RMB18,767,750 between the fair value of the equity interest acquired in Shayu over the price paid is accounted as contribution from shareholder in the condensed consolidated statement of change in shareholders’ equity. • The Company injected cash of RMB 80,000,000 and its holding of 100% equity interest in Chengdu Shuangsi Culture Broadcasting Co., Ltd (“Shuangsi”) with a fair value determined to be RMB54,391,900 into Shayu, in exchange of 8.309% newly issued equity interest in Shayu. Shuangsi ceased to be a subsidiary of the Group and a gain on disposal of subsidiary in the amount of RMB23,525,694 was recognized in the condensed consolidated statement of comprehensive income, representing the difference between the fair value of Shuangsi and its carrying value at the date of the transaction. Upon the completion of these transactions, the Group has 35.084% equity interest of Shayu and accounts for its investment in Shayu under the equity method. (2) In 2018, the Group made investments in four talent agencies with aggregate cash consideration of RMB3,600,000, none of which was individually material. In April 2020, the Group lost significant influence over these four talent agencies. Thus, these equity method investees with carrying amount of RMB4,077,376 were reclassified as equity securities without readily determinable fair values. During the six months ended June 30, 2019 and 2020, the Group recorded impairment of RMB3,790,443 and nil, respectively. Equity securities without readily determinable fair values: As of 2019 As of June 30, 2020 RMB RMB Content producers 123,629,785 188,811,526 Technology and software companies 59,102,000 49,102,000 Others 10,000,000 10,000,000 192,731,785 247,913,526 Equity securities without readily determinable fair value were accounted as cost method investments prior to adopting ASC 321. For six months ended June 30, 2019 and 2020, nil and RMB19,417,064 impairment were recorded and an upward adjustments of nil and RMB 8,571,429 as result of observable price change for the identical or similar investment of the same investees was recognized in other expense, net. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 10. Property and equipment, net Property and equipment consist of the following: December 31, June 30, 2019 2020 RMB RMB Gross carrying amount Servers, computers and equipment 142,236 189,929 Leasehold improvements 32,038 33,436 Others 10,603 10,139 Total 184,877 233,504 Less: accumulated depreciation (88,191 ) (115,015 ) Property and equipment, net 96,686 118,489 Depreciation expense for the six months ended June 30, 2019 and 2020 were RMB20,245 and RMB27,024, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | 11. Intangible assets, net The following table summarizes the Group’s intangible assets: December 31, June 30, 2019 2020 RMB RMB Gross carrying amount Copyrights of video content 30,021 64,266 License 32,000 32,000 Software 3,125 9,332 Domain names 5,120 5,283 Trademark 1,132 1,132 Total of gross carrying amount 71,398 112,013 Less: accumulated amortization Copyrights of video content (17,689 ) (32,730 ) License (3,556 ) (4,622 ) Software (2,756 ) (5,986 ) Domain names (1,613 ) (1,786 ) Trademark (699 ) (811 ) Total of accumulated amortization (26,313 ) (45,935 ) Intangible assets, net 45,085 66,078 Amortization expense for the six months ended June 30, 2019 and 2020 were RMB7,672 and RMB19,622, respectively. The estimated amortization expenses for each of the following five years as of June 30, 2020 are as follows: Twelve months ended June 30 Amortization expense of intangible assets RMB 2021 33,389 2022 5,155 2023 4,143 2024 2,572 2025 2,474 The weighted average amortization periods of intangible assets as of December 31, 2019 and June 30, 2020 are as below: December 31, June 30, 2019 2020 Copyrights of video content 2 years 2 years License 15 years 15 years Software 1 year 1 year Domain names 15 years 15 years Trademark 5 years 5 years |
Advances from customers and def
Advances from customers and deferred revenue | 6 Months Ended |
Jun. 30, 2020 | |
Advances from customers and deferred revenue [Abstract] | |
Advances from customers and deferred revenue | 12. Advances from customers and deferred revenue December 31, June 30, 2019 2020 RMB RMB Advances from customers 50,961 47,219 Deferred revenue, current 795,005 513,570 Total current advances from customers and deferred revenue 845,966 560,789 Deferred revenue, non-current 164,913 196,990 Total non-current 164,913 196,990 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities or Expenses and Other Current Liabilities | 13. Accrued liabilities and other current liabilities December 31, June 30, 2019 2020 RMB RMB Revenue sharing fees 817,792 939,421 Bandwidth costs 167,793 199,589 Salaries and welfare 251,914 166,012 Marketing and promotion expenses 61,210 65,494 Deposits from content providers, suppliers and advertising customers 47,386 59,982 Other taxes payable 40,349 50,018 License fees 48,138 45,070 Others 25,443 37,335 Total 1,460,025 1,562,921 |
Douyu [Member] | |
Accrued Liabilities or Expenses and Other Current Liabilities | 5. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of 2019 As of June 30, 2020 RMB RMB Accrued payroll and welfare 163,309,115 136,429,979 Marketing cost 112,859,994 90,049,508 Payable for repurchase of ordinary shares 53,293,800 — Deposits 30,566,743 26,579,209 Other tax payable 13,767,363 19,436,104 Others 18,550,109 25,003,182 Total 392,347,124 297,497,982 |
Cost of Revenues
Cost of Revenues | 6 Months Ended |
Jun. 30, 2020 | |
Cost of Revenues | 14. Cost of revenues For the six months ended 2019 2020 RMB RMB Revenue sharing fees and content costs 2,468,681 3,215,533 Bandwidth costs 364,744 504,924 Salaries and welfare 91,228 148,073 Payment handling costs 44,536 81,598 Share-based compensation 8,290 30,587 Depreciation and amortization 19,949 23,318 Other taxes and surcharges 10,339 22,895 Others 25,131 32,436 Total 3,032,898 4,059,364 |
Douyu [Member] | |
Cost of Revenues | 6. Cost of revenues Cost of revenues consist of the following: Six months ended June 30, 2019 2020 RMB RMB Bandwidth costs 315,618,557 321,299,441 Revenue sharing fees and content costs 2,394,021,579 3,329,777,086 Others 148,034,307 126,374,354 Total 2,857,674,443 3,777,450,881 |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income | 15. Other income Other income primarily comprised government grants which represent cash subsidies received from the PRC government by the Group entities and gains recognized for the transfer to third parties of the exclusive cooperation rights of broadcasters. Government grants are originally recorded as deferred revenue when received upfront. After all of the conditions specified in the grants have been met, the grants are recognized as other income. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxation | 16. Taxation (a) PRC value-added tax and related surcharges The Group is subject to value-added tax (“VAT”) and related surcharges on the revenues earned for services provided in the PRC. Net revenues are presented after netting off the VAT. The primary applicable rate of VAT is 6% for the six months end June 30, 2019 and 2020. The surcharges are calculated based on 12% of VAT paid. (b) Income taxes (i) Cayman Islands (“Cayman”) Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the subsidiary of the Group in Hong Kong is subject to 8.25% and 16.5% Hong Kong profit tax on its taxable income within HKD$2 million and beyond HKD$2 million, respectively. Payments of dividends are not subject to any withholding tax. (iii) Singapore The income tax provision of the Group in respect of its international operations was calculated at the tax rate of 17% on the assessable profits based on the existing legislation, interpretations and practices in respect thereof. (iv) PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The subsidiaries and VIEs of the Group in the PRC are subject to a uniform income tax rate of 25% for periods presented. Certified High and New Technology Enterprises (“HNTE”) are entitled to a preferential tax rate of 15%, but need to re-apply Qualified software enterprises (“Software Enterprise”) are exempt from EIT for two years, followed by a 50% reduction in the applicable tax rates for the next three (iv) PRC (continued) KNSE fails to meet the criteria for qualification as a KNSE in any year, the entity cannot enjoy the 10% preferential tax rate in that year. An entity registered in Hainan free trade port and operating substantially that qualifies as an “Encouraged Industrial Enterprises” (an “EIE”) is entitled to a preferential income tax rate of 15% for five years since January 1, 2020. Entities must perform a self-assessment each year to ensure they meet the criteria for qualification, pursuant to SAT Public Notice 2020 No.31 (“Circular 31”). If an EIE fails to meet the criteria for qualification as an EIE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year and must instead use the regular 25% EIT rate. The Group’s PRC entities provided for enterprise income tax are as follows: • Huya Technology was qualified as a Software Enterprise, and enjoyed the zero preferential tax rate starting from 2017 and 12.5 10 • Guangzhou Huya applied for the HNTE qualification and obtained approval in November 2018. It entitled to enjoy the preferential tax rate of 15 • Hainan Huya was qualified as an EIE in Hainan free trade port, and enjoyed the preferential tax rate of 15 • The remaining PRC subsidiaries and VIEs were subject to 25 According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deducting amount of the qualified research and development expenses have been increased from 50% to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC 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 (b) Income taxes (continued) (iv) PRC (continued) such tax treaty with China. According to the arrangement between the mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the immediate holding company in Hong Kong is the beneficial owner of the FIE and owns directly at least 25% of the shares of the FIE). In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and withholding taxes should be accrued accordingly. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends will be re-invested The undistributed earnings and reserves of the Group entities located in the PRC are considered to be indefinitely reinvested, because the Group does not have any present plan to pay any cash dividends on its ordinary shares in the foreseeable future and intends to retain most of its available funds and any future earnings for use in the operation and expansion of its business. Accordingly, no deferred tax liability on 10% WHT of aggregate undistributed earnings and reserves of the Company’s entities located in the PRC has been accrued that would be payable upon the distribution of those amounts to the Company as of June 30, 2020. The current and deferred portions of income tax benefits included in the consolidated statements of operations are as follows: For the six months ended 2019 2020 RMB RMB Current income tax expenses 38,915 141,101 Deferred income tax expenses (benefits) (i) 1,685 (52,259 ) Total income tax expenses 40,600 88,842 (i) The deferred income tax benefits for the six months ended June 30, 2020 represented mainly the deferred tax related to unrealized losses arisen from intercompany transactions. |
Ordinary Shares
Ordinary Shares | 6 Months Ended |
Jun. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Ordinary Shares | 17. Ordinary shares During the six months ended June 30, 2019, 749,433 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, 4,800,000 Class B ordinary shares were converted to Class A ordinary shares. During the six months ended June 30, 2020, 2,952,774 Class A ordinary shares were issued for the exercised share options and vested restricted share units. As of June 30, 2020, 70,054,088 Class A ordinary shares and 152,357,321 Class B ordinary shares had been issued and outstanding, respectively. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-Based Compensation | 18. Share-based compensation Compensation expense recognized for share-based awards granted by JOYY and Huya, respectively, was as follows: For the six months 2019 2020 RMB RMB Share-based compensation expenses —Related to JOYY’s Share-based Awards 1,410 — —Related to Huya Share-based Awards 115,025 218,057 Total 116,435 218,057 There was no capitalized share-based compensation expense for the periods presented. (a) JOYY’s Share-based Awards Certain of the Group’s employees were granted awards under the 2011 Share Incentive Scheme of JOYY. The share-based compensation expense arising from such grants was allocated to the Group and recognized as share-based compensation expense in the Group’s consolidated statements of comprehensive income. As of June 30, 2020, there was no unrecognized compensation expense since all the JOYY’s Share-Based Awards have been vested. (b) Huya Share-based Awards Huya amended and restated 2017 Share Incentive Plan On July 10, 2017, the Board of Directors of the Company approved the establishment of 2017 Share Incentive Plan, the purpose of which is to provide an incentive for employees contributing to the Group. The 2017 Share Incentive Plan shall be valid and effective for 10 years from the grant date. The maximum number of shares that may be issued pursuant to all awards under 2017 Share Incentive Plan shall be 17,647,058 shares. On March 31, 2018, the Board of Directors approved the amended and restated 2017 Share Incentive Plan. The maximum number of shares that may be issued has been increased from 17,647,058 shares to 28,394,117 shares, including incentive share options and restricted share units. (i) Options Grant of options During the six months ended June 30, 2019 and 2020, no share option was granted. Vesting of options There are three types of vesting schedule, which are: i) 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, ii) options will be vested in four equal installments over the following 48 months, and iii) options will be vested in four equal installments over the following 24 months. These options shall (i) be exercisable during its term cumulatively according to the vesting schedule set out in the grant notice and with the applicable provisions of the amended and restated 2017 Share Incentive Plan, provided that the performance conditions otherwise agreed by the parties (if any) to which the option is subject have been fulfilled upon each corresponding vesting date; (ii) be deemed vested and exercisable immediately in the event of a change of control, regardless of the vesting schedule; (iii) be exercisable upon any arrangement as otherwise agreed by the parties based on their discussion in good faith. Movements in the number of share options granted and their related weighted average exercise prices are as follows: Number of Weighted Weighted As at December 31, 2018 17,520,555 2.5210 8.82 Forfeited (5,750 ) 2.5500 Exercised (714,000 ) 2.2298 As at June 30, 2019 16,800,805 8.32 As at December 31, 2019 15,251,661 2.5458 7.84 Forfeited (18,000 ) 2.5500 Exercised (1,605,752 ) 2.5500 As at June 30, 2020 13,627,909 7.37 Expected to vest at June 30, 2020 — — — Exercisable as at June 30, 2020 13,627,909 2.5453 7.37 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. For the six months ended June 30, 2019 and 2020, the Group recorded share-based compensation of RMB62,618 and RMB75,699 related to the share options, including share-based compensation expense of RMB57,737 immediately recognized upon a change of control on April 3, 2020 as detailed in Note 1(a). As of June 30, 2020, there was no unrecognized compensation expense since all the options have been vested. (ii) Restricted share units Grant of restricted share units During the six months ended June 30, 2019 and 2020, the Company granted 413,000 and 2,126,452 restricted share units to employees pursuant to the amended and restated 2017 Share Incentive Plan. Vesting of restricted share units There are three main months The following table summarizes the activity of restricted share units for the six months ended June 30, 2019 and 2020: Number of Weighted grant-date Outstanding, December 31, 2018 4,107,185 9.0331 Granted 413,000 21.9009 Forfeited (62,000 ) 8.1384 Vested (465,000 ) 7.1600 Outstanding, June 30, 2019 3,993,185 10.5960 Outstanding, December 31, 2019 6,279,848 15.4350 Granted 2,126,452 15.7608 Forfeited (274,570 ) 16.8622 Vested (1,540,141 ) 10.0049 Outstanding, June 30, 2020 6,591,589 16.6036 Expected to vest at June 30, 2020 6,071,452 16.4559 For the six months ended June 30, 2019 and 2020, the Company recorded share-based compensation of RMB52,407 As of June 30, 2020, total unrecognized compensation expense relating to the restricted share units was RMB443,180. The expense is expected to be recognized over a weighted average period of 1.15 year using the graded-vesting attribution method. |
Douyu [Member] | |
Share-Based Compensation | 7. Share-based compensation I. Non-vested A summary of non-vested Number of Weighted grant-date Outstanding as of December 31, 2019 2,049,466 31.50 Vested (62,105 ) 31.50 Forfeited (1) (1,429,906 ) 31.50 Cancellation (2) (557,455 ) 31.50 Outstanding as of June 30, 2020 — — (1) In February 2020, the Group repurchased 1,429,906 shares of unvested restricted shares from one of the Gogo Glocal’s founders with a consideration of US$1 due to the early termination of his requisite employment service, which was considered as a forfeiture of the unvested restricted shares. (2) In February 2020, the Group canceled 557,455 unvested restricted shares granted. The corresponding unrecognized share-based compensation expense of RMB7,451,210 was immediately recognized in the condensed consolidated statement of comprehensive income for the six months ended June 30, 2020. As of June 30, 2020, the total unrecognized share-based compensation expense was nil. For the six months ended June 30, 2019 and 2020, the Group recorded compensation expenses of RMB45,212,932 and RMB8,029,560, respectively. II. Restricted share units A summary of restricted share unit activities during the six months ended June 30, 2020 is presented below: Number of Weighted grant-date Weighted RMB Years Outstanding as of December 31, 2019 1,794,586 274.55 2.58 Vested (347,067 ) 274.55 Forfeited (2,881 ) 274.55 Outstanding as of June 30, 2020 1,444,638 274.55 2.08 The Group has recorded compensation expenses of nil and RMB67,298,503 for the six months ended June 30, 2019 and 2020 relating to these restricted share units. As of June 30, 2020, there were RMB275,210,925, unrecognized share-based compensation expenses related to the restricted share units. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Douyu [Member] | |
Segment Information | 8. Segment Information The Group uses the management approach to determine operation segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocation of resources and assessing performance. The Group’s CODM has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. Before October 2018, the Group operated and managed its business in PRC China as a single segment. In October 2018, the Group acquired Nonolive and identified it as a new operating segment. In August 2019, the Group set up “DouYu Japan” which operates a live streaming platform in Japan with a third party. The Group has determined that Nonolive and DouYu Japan do not meet the quantitative thresholds for a reportable segment under ASC 280-10-50 100% and 92.37% of the Group’s revenue for the six months ended June 30, 2019 and 2020, respectively, were generated from the PRC. As of June 30, 2019 and 2020, 100% and 97.44% of long-lived assets of the Group were located in the PRC. There were no customers from whom revenue accounted for 10% or more of total revenue for the six months ended June 30, 2019 and 2020, respectively. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Net income per share | 19. Net income per share Basic and diluted net income per share for the six months ended June 30, 2019 and 2020, are calculated as follows: For the six months 2019 2020 RMB RMB Numerator: Net income 185,261 377,984 Numerator for basic and diluted net income per share 185,261 377,984 Denominator: Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding 210,426,174 220,766,682 —Diluted effect of share options 14,345,621 12,566,186 —Diluted effect of restricted share units 3,012,224 2,850,513 Denominator for diluted calculation 227,784,019 236,183,381 Net income per ADS* —Basic 0.88 1.71 —Diluted 0.81 1.60 Net income per ordinary share —Basic 0.88 1.71 —Diluted 0.81 1.60 * Each ADS represents one Class A ordinary share. |
Douyu [Member] | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Net income per share | 9. Net income per share and net income attributable to ordinary shareholders The Group’s convertible redeemable preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if For the six months ended June 30, 2019, the Group used the two-class pro-rata as-if-converted two-class Upon the consummation of the Company’s IPO on October July 17, 2019, the convertible redeemable preferred shares were automatically converted into ordinary shares. The two-class Basic and diluted net income per share for each of the year presented were calculated as follows: Six months ended June 30, 2019 2020 RMB RMB Basic net income per share calculation Numerator: Net income attributable to DouYu Holdings Limited shareholders 42,791,087 596,495,450 Amounts allocated to convertible redeemable preferred shares for participating rights to dividends (30,454,311 ) — Net income attributable to ordinary shareholders for computing basic net income per share 12,336,776 596,495,450 Denominator: Weighted average number of ordinary shares used in computing basic income per ordinary share 8,063,790 31,838,618 Basic net income per ordinary share 1.53 18.73 Diluted net income per share calculation Numerator: Net income attributable to ordinary shareholders of DouYu Holdings Limited 12,336,776 596,495,450 Add: undistributed earnings allocated to participating securities 30,454,311 — Net income attributable to ordinary shareholders for computing diluted net income per ordinary share 42,791,087 596,495,450 Denominator: Weighted average number of ordinary shares used in computing basic income per ordinary share 8,063,790 31,838,618 Add: conversion of convertible redeemable preferred shares into ordinary shares 19,906,105 — Restricted Share Units 1,373,846 1,081,472 Weighted average ordinary shares used in computing diluted income per ordinary share 29,343,741 32,920,090 Diluted net income per ordinary share 1.46 18.12 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions | 20. Related party transactions During the six months ended June 30, 2019 and 2020, significant related party transactions were as follows: Transactions with JOYY For the six months 2019 2020 RMB RMB Purchase of services by JOYY on behalf of Huya 11,266 11,547 Operation support services provided by JOYY (i) 13,160 2,562 Deemed distribution to JOYY 9,278 1,013 Cash collected by JOYY as a payment platform for Huya 1,176,600 — Share-based compensation expenses related to JOYY’s Share-based Awards (Note 18(a)) 1,410 — Others 8,398 1,438 Transactions with Tencent For the six months 2019 2020 RMB RMB Operation support services provided by Tencent (ii) 88,934 162,309 Purchase of copyrights for live streaming from Tencent 81,062 79,192 Payment on behalf of Tencent 12,918 8,610 Advertising revenue from Tencent 4,393 7,336 Market promotion expenses charged by Tencent 1,851 6,322 Cash collected by Tencent as a game operator for Huya — 2,832 Others 79 3,280 (i) Purchases of services from JOYY mainly consist of office rental, payment handling services and bandwidth services which are charged at market price. (ii) Operation support services from Tencent mainly consist of bandwidth and payment handling services which are charged at market price. Transactions with entities over which Tencent has significant influence (“Tencent’s related parties”) For the six months 2019 2020 RMB RMB Purchase of operating rights for live streaming from Tencent’s related parties — 28,089 Bandwidth service provided by Tencent’s related parties — 11,129 Content production costs charged by Tencent’s related parties — 5,216 Market promotion expenses charged by Tencent’s related parties — 3,715 Others — 5,734 As of December 31, 2019 and June 30, 2020, the amounts due from/to related parties were as follows: December 31, June 30, 2019 2020 RMB RMB Amounts due from related parties Tencent and its related parties 41,129 52,415 JOYY 10,807 — Total 51,936 52,415 Amounts due to related parties Tencent 78,832 168,619 Tencent’s related parties 200 58,722 JOYY — 11,154 Total 79,032 238,495 The other receivables/payables from/to related parties are unsecured and payable on demand. |
Douyu [Member] | |
Related Party Transactions | 10. Related party transactions The table below sets forth major related parties and their relationships with the Group: Company Name Relationship with the Group Tencent Holdings Limited (“Tencent Group”) Parent company of one of our shareholders For the six months ended June 30, 2019 and 2020, significant related party transactions were as follows: Six months ended June 30, 2019 2020 RMB RMB Live streaming revenue derived from Equity method investees—talent agencies 78,933,963 1,415,094 Advertisement revenue derived from Tencent Group 2,659,943 743,697 Other revenue derived from Tencent Group 14,387,130 5,475,812 Revenue sharing fees and content cost paid to Tencent Group 3,918,816 2,456,153 Equity method investees—talent agencies 353,638,193 476,856,579 Total 357,557,009 479,312,732 Bandwidth fees paid to Tencent Group 117,000,468 105,148,383 Payment handling fees paid to Tencent Group 14,026,878 21,322,748 Content rights purchased from Tencent Group 32,293,475 36,732,755 As of December 31, 2019 and June 30, 2020, the amounts due from/to related parties are as follows: As of December 31, 2019 As of June 30, 2020 RMB RMB Amount due from related parties Tencent Group 23,935,019 40,172,138 Equity method investees—talent agencies 108,831 361,304 Total 24,043,850 40,533,442 Amount due to related parties Tencent Group 251,069,127 205,046,416 Equity method investees—talent agencies 47,663,895 58,919,469 Total 298,733,022 263,965,885 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 21. Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The following table summarizes the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2019 and June 30, 2020: As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Short-term investments (i) 108,476 2,111,055 — 2,219,531 As of June 30, 2020 Level 1 Level 2 Level 3 Total Assets Short-term investments (i) — 2,398,004 — 2,398,004 (i) Short-term investments represented the investments issued by commercial banks and financial institution with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair value is provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. For the instruments whose fair value is estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. |
Lease
Lease | 6 Months Ended |
Jun. 30, 2020 | |
Lease | 22. Lease The Group has entered into various non-cancellable The balances for the operating leases where the Group is the lessee are presented as follows within the balance sheets: As of December 31, As of June 30, RMB RMB Right-of-use 102,824 90,919 Current portion of operating lease liabilities 31,878 31,961 Non-current 70,110 58,837 Total operating lease liabilities 101,988 90,798 |
Douyu [Member] | |
Lease | 11. Leases For the six months ended June 30, 2020, the lease expense is as: Six months ended June 30, 2020 RMB Operating lease expense 20,925,309 Short-term lease expense 3,889,493 Total lease expense 24,814,802 Operating lease expense was RMB21,269,358 for the six months ended June 30, 2019 prior to the adoption of the lease ASUs. Supplemental consolidated balance sheet information related to leases was as follows: As of June 30, 2020 RMB Operating lease: Operating leases right-of-use 85,515,963 Current portion of lease liabilities 44,485,430 Non-current 38,276,429 Total operating lease liabilities Weighted-average remaining lease term (in years)—operating leases 1.12 Weighted-average discount rate—operating leases 4.30 % Supplemental cash flow information related to leases are as follows: Six months ended June 30, 2020 RMB Cash paid for operating leases 22,472,405 Lease liabilities arising from obtaining right-of-use 23,382,282 As of June 30, 2020, future minimum lease payments under non-cancellable right-of-use Years ending RMB 2020 (July-December) 30,676,101 2021 39,584,250 2022 12,401,942 2023 3,257,440 2024 and thereafter — Total undiscounted cash flows 85,919,733 Less: imputed interest 3,157,874 Total 82,761,859 Lease liabilities due within one year 44,485,430 Lease liabilities due after one year 38,276,429 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies | 23. Commitments and contingencies (a) Operating commitments As of December 31, 2019, future minimum payments under non-cancellable Twelve months ended December 31 Operating RMB 2020 10,787 2021 5,598 2022 4,086 2023 and thereafter 3,204 23,675 As of June 30, 2020, future minimum payments under non-cancellable Twelve months ended June 30, 2020 Operating RMB 2021 10,860 2022 4,578 2023 4,103 2024 and thereafter 1,196 20,737 The commitments presented above mainly consist of property management fees, short-term lease commitments and leases that have not yet commenced but that create significant rights and obligations for the Company, which are not included in operating lease right-of–use (b) Capital commitments As of June 30, 2020, the Group did not (c) Legal proceedings As of June 30, 2020, the Group involved in a few cases related to unfair competition in broadcasters recruitment. These cases are pending in various courts. Total claim amount is RMB35.4 million. As of the date of issuance of the financial statements, those remaining lawsuits are still pending and the Group is not able to make a reliable estimate of the potential loss, if any. |
Douyu [Member] | |
Commitments and Contingencies | 12. Commitments and contingencies Contingencies In 2019, the Group was named as one of the defendants to lawsuits filed in court by a third party company platform operator for mobile apps and games in China. The third party platform operator is seeking a total monetary damage in an amount of RMB66.7 million by claiming certain steamers infringe their non-compete The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not have any pending legal or administrative proceeding to which the Group is a party that will have a material effect on its business or financial condition. |
VIEs
VIEs | 6 Months Ended |
Jun. 30, 2020 | |
Condensed Financial Statements [Abstract] | |
Condensed Financial Statements | 24. VIEs The following consolidated financial information of the Group’s VIEs excluding the intercompany items with the Group’s subsidiaries was included in the accompanying consolidated financial statements as of and for the periods ended: December 31, June 30, 2019 2020 RMB RMB Total current assets 2,033,635 1,326,950 Total non-current 634,965 673,603 Total assets 2,668,600 2,000,553 Total current liabilities 1,935,670 1,801,797 Total non-current 169,713 199,794 Total liabilities 2,105,383 2,001,591 For the six months 2019 2020 RMB RMB Net revenues 3,624,897 5,025,445 Net income 455,802 2,898,657 For the six months 2019 2020 RMB RMB Net cash provided by operating activities 1,224,973 2,975,191 Net cash (used in) provided by investing activities (700,423 ) 441,437 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events | 25. Subsequent events The Group has evaluated subsequent events through November 10, 2020, which is the date the unaudited interim condensed consolidated financial statements were issued, and concluded that no subsequent events have occurred that would require recognition or disclosure in the unaudited interim condensed consolidated financial statements other than as discussed below, On October 12, 2020, the Company and DouYu International Holdings Limited (“DouYu”) (NASDAQ: DOYU) entered into an agreement and plan of merger (the “Merger Agreement”) with Tiger Company Ltd., a newly formed company with limited liability incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of Huya (“Merger Sub”), and, solely for the limited purposes set forth therein, Nectarine Investment Limited, a wholly owned subsidiary of Tencent. Pursuant to the Merger Agreement, Huya will acquire all the outstanding shares of DouYu, including ordinary shares represented by ADS, through a stock-for-stock merger (the “Merger”). Pursuant to the Merger Agreement, each Douyu ordinary share issued and outstanding immediately prior to the effective time of the Merger will be canceled in exchange for the right to receive 7.30 Huya Class A ordinary shares, and each Douyu ADS will be surrendered in exchange for the right to receive 0.730 Huya ADS. Concurrently with the execution of the Merger Agreement, DouYu and Nectarine entered into the reassignment agreement (the “Ressignment”), pursuant to which Nectarine will assign its interests in the game live streaming business operated by the Tencent group under the “Penguin e-Sports” brand (the “Penguin Business”) and deepen its business cooperation with DouYu in order to integrate the Penguin Business with the business of the combined Huya and DouYu upon the Merger, for a total consideration of US$500.0 million. In accordance with the terms of the Merger Agreement, the Board of Directors of the Company also approved a cash dividend in an aggregate amount of US$200.0 million to be paid on or around the date of the closing of the Merger. The closing of the Reassignment and the Merger will take place substantially concurrently with each other and the Merger is currently expected to close during the first half of 2021. |
Douyu [Member] | |
Subsequent Events | 13. Subsequent events The Group has evaluated subsequent events through November 10, 2020, which is the date when the condensed consolidated financial statements were issued. On October 12, 2020, the Company entered into an agreement with HUYA Inc. (“Huya”) and Nectarine Investment Limited (“Tencent”), a wholly owned subsidiary of Tencent Holdings Limited (the “Merge Agreement”), pursuant to which Huya will acquire all the outstanding shares of the Company DouYu, including ordinary shares represented by American depositary shares, through a stock-for-stock Concurrently with the execution of the Merger Agreement, the Company and Tencent entered into a Reassignment Agreement, dated October 12, 2020, pursuant to which Tencent will assign its interests in the game live streaming business operated by the Tencent group under the “Penguin e-Sports” |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation | (a) Basis of presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Apart from the adoption of ASU No. 2016-13, The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect the recorded amounts reported therein. A change in facts or circumstances surrounding the estimate could result in a change to estimates and impact future operating results. The unaudited condensed consolidated financial statements and related disclosures have been prepared with the presumption that users of the unaudited condensed consolidated financial statements have read or have accessed to the audited consolidated financial statements as of December 31, 2019 and for the period ended December 31, 2019. The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. GAAP. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of December 31, 2019 and for the period ended December 31, 2019. |
Consolidation | (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Huya Technology and ultimately the Company hold all the variable interests of the VIEs and has been determined to be the primary beneficiary of the VIEs. |
Use of Estimates | (c) Use of estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, related disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of multiple element revenue contracts, income taxes, tax considerations for earnings retained in the Group’s VIEs, and subsequent adjustment due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its unaudited condensed consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Foreign Currency Translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong, Cayman Islands and Singapore is United States dollar (“US$”), while the functional currency of the Group’s entities in PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end |
Convenience Translation | (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB7.0651 on June 30, 2020 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Statutory Reserves | (f) Statutory reserves The Group did not make any appropriation to its general reserve fund, statutory surpluses fund, discretionary surplus fund, and the staff bonus and welfare fund for the six months ended June 30, 2019 and 2020, respectively. |
Segment Reporting | (g) Segment reporting The Group’s chief operating decision maker has been identified as its Chief Executive Officer (“CEO”), who reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. Therefore, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The Group’s long-lived assets are substantially all located in the PRC and substantially all of the Group’s revenues are derived from the PRC. Therefore, no geographical segments are presented. |
Revenue recognition | (h) Revenue Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The following table disaggregates the Group’s revenue by major type for the period ended June 30, 2019 and 2020: For the six months ended 2019 2020 RMB RMB Live streaming 3,473,967 4,839,547 Advertising and others 167,972 269,645 Total 3,641,939 5,109,192 Revenue recognition and significant judgments (i) Live streaming The Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. It generates revenue from sales of virtual items in the platforms. The Group has a recharge system for users to purchase the Group’s virtual currency then purchase virtual items for use. Users can recharge via various online third-party payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid to broadcasters and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined and consumed by them, while revenue related to time-based virtual items provided on a subscription basis is recognized ratably over the contract period. The Group does not have further performance obligations to the user after the virtual items are consumed immediately or after the stated contract period of time for time-based items. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as Huya Noble Member Program. Determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The contract of Huya Noble Member Program, which is normally purchased on a monthly basis, includes three major virtual items, a) the noble member status, b) the virtual currency coupons, and c) the right of subsequent renewal at a discounted price, which are considered distinct and accounted for separately under ASC 606. A noble member status itself cannot be purchased on a standalone basis, and it is used for one month but the users can simultaneously purchase multiple months of the package (with effective period of noble member status limited to a maximum of 24 months from date of purchase) at any point in time. The virtual currency coupons, which have the same purchase power as the Group’s virtual currency but with expiry dates, is valid to purchase virtual items for a fixed period. Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. In instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, such as the noble member status and the virtual currency coupons, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. In respect of the right of subsequent renewal at a discounted price, the Group estimates individual user’s times of renewal based on historical data of users’ spending pattern and average times of renewal. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue allocated to noble member status, it is generally recognized ratably over the contract period as users simultaneously consume and receive benefits. For revenue related to virtual currency coupons provided on a consumption basis, virtual currency coupons used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed above unless otherwise stated. Although the virtual currency coupons have expiry dates, the Group considers the impact of the breakage amount for virtual currency coupons insignificant as historical data shows that virtual currency coupons are consumed shortly after they are released to users and the forfeiture rate remains relatively low for the periods reported, therefore, the Group does not expect to be entitled to a breakage amount for the virtual currency coupons. For the right of subsequent renewal at a discounted price, upon each time a subsequent renewal is purchased, the cash received is recorded as deferred revenue and allocated proportionally to the noble member status and virtual currency coupons based on their relative standalone selling price and revenue is then recognized following the revenue recognition method of noble member status and virtual currency coupons as described above respectively. As the Group’s live streaming virtual items are generally sold without right of return and the Group does not provide any other credit and incentive to its users, accounting of variable consideration when estimating the amount of revenue to recognize is not applicable to the Group’s live streaming business. (ii) Advertising The Group generates advertising revenues primarily from sales of various forms of advertising and promotion campaigns, including (i) display advertisements in various areas of our platform, (ii) native advertisements in cooperation with broadcasters, and (iii) game events advertising and campaigns. Advertisements on the Group’s platforms are generally charged on the basis of duration. Advertising contracts are signed to establish the fixed price and the advertising services to be provided. Where the service is transferred to customers, revenues from advertising contracts are recognized ratably over the contract period of display. The Group enters into advertising contracts directly with advertisers or third-party advertising agencies that represent advertisers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 3 months. Both third-party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. In instances where the timing of revenue recognition differs from the timing of billing, the Group has determined the advertising contracts generally do not include a significant financing component. The primary purpose of the credits terms is to provide customers with simplified and predictable ways of purchasing the Group’s advertising services, not to receive financing from its customers or to provide customers with financing. Certain customers may receive sales incentives in the forms of discounts and rebates to advertisers or advertising agencies based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. For the six months ended June 30, 2019 and 2020, the amounts of discounts and rebates to advertising customers were RMB20,986 and RMB44,324, respectively. The Group believes that there will not be significant changes to its estimates of variable consideration. (iii) Online game revenues The Group generates revenues from offering virtual items in online games developed by the Group itself or third parties to game users. The Group has a recharge system for game user to purchase game tokens for use. Game user can recharge via various online third-party payment platforms, including WeChat Pay, AliPay and other payment platforms. Game tokens are non-refundable The majority of online games revenues were derived from the Group’s self-developed games for the periods presented. With respect to the game operation contracts entered into between the Group and distribution platforms for co-publishing on-going Users play games free of charge and are charged for purchases of virtual items mainly including consumable and perpetual items, which can be utilized to enhance users’ game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online games. The Group maintains information on consumption details of in-game in-game The estimated user relationship period is based on data collected from those game users who have purchased game tokens. The Group maintains a system that captures the following information for each game user: (a) the frequency that game users log into each game, and (b) the amount and the timing of when the game users charge his or her game token. The Group estimates the user relationship period for a particular game to be the date a user purchases a game token through the date the Group estimates the game user plays the game for the last time. This computation is completed on a user by user basis. Then, the results for all analyzed users are averaged to determine an estimated end user relationship period for each game. Revenues from in-game The determination of user relationship period is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. The Group assesses the estimated user relationships on a monthly basis. Any adjustments arising from changes in the user relationship as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections. Contract balances The Group collects accounts receivable from various online payment platforms, distribution platforms and advertising customers. The opening balance of accounts receivable from third-party and related party payment platforms were RMB30,507 and RMB239,290, respectively, as of January 1, 2019. As of December 31, 2019 and June 30, 2020, accounts receivable from third-party payment platforms were RMB43,339 and RMB50,901, respectively, and accounts receivable from related parties as payment platforms were RMB31,261 and RMB23,118, respectively. The opening balance of accounts receivable from third-party distribution platforms as of January 1, 2019 was RMB2,941. As of December 31, 2019 and June 30, 2020, accounts receivable from third-party distribution platforms were RMB3,978 and RMB5,625, respectively. No accounts receivable was from related party distribution platforms as of January 1, 2019, and the balance of accounts receivable from a related party as distribution platform was RMB687 and RMB670, as of December 31, 2019 and June 30, 2020. The opening balance of accounts receivable from third-party advertising customers and related party advertising customers were RMB11,323 and RMB5,926, respectively, as of January 1, 2019. As of December 31, 2019 and June 30, 2020, accounts receivable from third-party advertising customers were RMB15,313 and RMB10,175, respectively. The balance of accounts receivable from a related party was RMB2,994 and RMB4,541, as of December 31, 2019 and June 30, 2020, respectively. Contract liabilities primarily consists of deferred revenue for unconsumed virtual items and unamortized revenue from virtual items in the Group’s platforms, where there is still an obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met. The opening balance of deferred revenue related to live streaming business as of January 1, 2019 was RMB543,245. As of December 31, 2019 and June 30, 2020, deferred revenue related to live streaming business were RMB951,166 and RMB699,716, respectively. During the six months ended June 30, 2019 and 2020, the Group recognized revenue of live streaming business amounted to RMB425,536 and RMB679,485, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. The opening balance of deferred revenue related to online game business as of January 1, 2019 was RMB6,867. As of December 31, 2019 and June 30, 2020, deferred revenue related to online game business were RMB8,752 and RMB10,844, respectively. During the six months ended June 30, 2019 and 2020, the Group recognized revenue of online game business amounted to RMB6,867 and RMB8,752, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. During the six months ended June 30, 2019 and 2020, the Group does not have any arrangement where the performance obligations have already been satisfied in the past period, but the corresponding revenue is only recognized in a later period. |
Investment | (i) Investment Equity Investments without Readily Determinable Fair Values The Company elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and |
Share-Based Compensation | (j) Share-based compensation Share-based compensation expense arises from share-based awards, including restricted share units granted by JOYY with its own underlying shares to certain management and other key employees who to some extent provide services to the Group (“JOYY’s Share-based Awards”), share options for the purchase of Huya’s ordinary shares and Huya’s restricted share units, granted by the Group to its management, key employees and non-employees JOYY’s Share-based Awards In determining the fair value of restricted share units granted, the fair value of the underlying shares of JOYY on the grant dates is applied. The grant date fair value of restricted share units is based on stock price of JOYY in the NASDAQ Global Market. Share-based compensation expense for restricted share units granted under JOYY share-based incentive plans is recognized using the graded vesting method, net of estimated forfeiture rates, over the requisite service period, which is generally the vesting period. Forfeitures are estimated at the time of grant based on historical forfeiture rates and will be revised in the subsequent periods if actual forfeitures differ from those estimates. Huya’s share options After the listing of the Company, the grant date fair value of share options is based on stock price of the Company’s ordinary share in NYSE minus the respective exercise price. Share-based compensation expense for share options granted to employees is measured based on their grant-date fair values and recognized over the requisite service period, which is generally the vesting period. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and the related compensation expense is not recorded for the number of awards so estimated. Huya’s restricted share units Fair value of restricted share units (“RSUs”) is determined with reference to the fair value of the underlying shares. After the completion of IPO, the fair value of restricted share units is determined with reference to stock price of Huya in NYSE. |
Leases | (k) Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 The Company categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessee to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses over the term of the lease. |
Recently Issued Accounting Pronouncements | (l) Recently issued accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, In January 2020, the FASB issued ASU No. 2020-01, In March 2020, the FASB issued ASU No. 2020-04, |
Douyu [Member] | |
Basis of Presentation | 2.1 Basis of Presentation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘US GAAP’’) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim financial statements should be read in conjunction with the Group’s condensed consolidated financial statements as of and for the years ended December 31, 2018 and 2019. |
Consolidation | 2.2 Basis of Consolidation The condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs. All transactions and balances among the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. The Company, through its wholly-owned foreign invested subsidiary, WFOE in the PRC, entered into a series of contractual arrangements (“VIE agreements”) with Wuhan Douyu Network Technology Co., Ltd. (‘‘Wuhan Douyu’’) and Wuhan Ouyue Online TV Co., Ltd. (‘‘Wuhan Ouyue’’) (collectively known as “the VIEs”) and their respective shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Applicable PRC laws and regulations currently limit foreign ownership of companies that provide internet valued-added businesses. The Company is deemed a foreign legal person under PRC laws and accordingly subsidiaries owned by the Company are not eligible to engage in provisions of internet content or online services. The Group therefore operates its business, primarily through the VIEs and the subsidiaries of the VIEs. The following financial statement amounts and balances of the VIEs were included in the accompanying condensed consolidated financial statements after elimination of intercompany transactions and balances: As of December 31, 2019 As of June 30, 2020 RMB RMB ASSETS Cash and cash equivalents 826,481,128 1,038,051,244 Restricted cash 42,902,719 10,702,719 Short-term bank deposits — 210,000,000 Short-term investments — 100,000,000 Accounts receivable, net 176,599,681 145,180,777 Prepayments 12,982,856 86,910,348 Amount due from related parties 13,431,477 14,506,399 Other current assets 82,405,807 110,159,776 Property and equipment, net 17,794,907 13,471,546 Intangible assets, net 130,272,386 141,176,528 Right-of-use — 45,952,175 Investments 147,033,947 326,144,439 Other non-current 1,918,598 4,654,226 Total Assets 1,451,823,506 2,246,910,177 LIABILITIES Accounts payable 794,266,492 1,003,180,314 Advances from customers 16,975,882 9,063,666 Deferred revenue 181,250,993 169,300,598 Accrued expenses and other current liabilities 177,228,742 145,075,307 Amounts due to related parties 59,693,186 246,941,064 Lease liabilities — 43,926,131 Total Liabilities 1,229,415,295 1,617,487,080 Six Months ended June 30, 2019 2020 RMB RMB Net revenue 3,334,443,811 4,733,053,396 Net income 435,102,934 890,624,128 Six Months ended June 30, 2019 2020 RMB RMB Net cash provided by operating activities 81,657,219 692,412,433 Net cash used in investing activities (14,473,970 ) (513,042,317 ) Net cash used in provided by financing activities (1,363,044,149 ) — The VIEs contributed 99% of the Group’s consolidated revenue for the six months ended June 30, 2019 and 2020. As of December 31, 2019 and June 30, 2020, the VIEs accounted for an aggregate of 16% and 24% of the consolidated total assets, 67% and 82% of the consolidated total liabilities, respectively. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs were ever to need financial support, the Group may provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. The Group believes that there are no assets held in the VIEs that can be used only to settle obligations of the VIEs. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its registered capital, to the Company in the form of loans and advances or cash dividends. |
Use of Estimates | 2.3 Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Group’s condensed consolidated financial statements include revenue recognition, share-based compensation, realization of deferred tax assets, impairment of investment, and allowance for credit loss. |
Foreign Currency Translation | 2.4 Foreign currency translation The functional currency of the Company is in US dollars (“US$”). The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Translation gains and losses are recognized in the consolidated statements of comprehensive income. The Group’s reporting currency is Renminbi (“RMB”). For entities within the Group that have a functional currency other than the reporting currency, assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a component of other comprehensive income in the statements of comprehensive income and the consolidated statements of change in shareholders’ equity (deficit). |
Fair value measurements | 2.5 Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1 — Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2 — Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3 — Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The Group measures its financial assets and liabilities including cash and cash equivalents, restricted cash, short-term bank deposits, short-term investments, accounts receivable, amount due from related parties, other current assets, accounts payable, amounts due to related parties and accrued expenses and other current liabilities at fair value which are approximates their cost due to the short-term nature of these assets and liabilities. The Group measures equity method investments at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments are determined based on valuation techniques using the best information available, and may include future performance projections, discount rate and other assumptions that are significant to the measure of fair value. An impairment charge to these investments is recorded when the carry amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group recognized impairment losses of RMB3,790,443 and nil related to equity method investments for the six months ended June 30, 2019 and 2020, respectively. Beginning January 1, 2019, the Group’s equity investments without readily determinable fair values, which do not qualify for NAV practical expedient and over which the Group does not have the ability to exercise significant influence through the investments in common stock or in substance common stock, are accounted for under the measurement alternative upon the adoption of Accounting Standards Update (“ASU”) 2016-01 “Recognition and Measurement of Financial Assets and Liabilities” (the “Measurement Alternative”). Under the Measurement Alternative, the carrying value is measured at cost, less any impairment, plus and minus changes resulting from observable price changes in orderly transactions for identical or similar investments. The Group recognized an unrealized gain of nil and RMB8,571,429 as a result of an observable price change event for the six months ended June 30, 2019 and 2020, respectively. The Group recognized impairment losses of nil and RMB19,417,064 related to equity investments without readily determinable fair values for the six months ended June 30, 2019 and 2020, respectively. |
Convenience Translation into United States Dollars | 2.6 Convenience Translation into United States Dollars Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive income and consolidated statements of cash flows from RMB into United States dollars are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB7.0651 on June 30, 2020, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on June 30, 2020, or at any other rate. |
Accounts receivable and allowance for doubtful accounts | 2.7 Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the historical carrying amount net of allowance for credit loss. On January 1, 2020, the Group adopted ASU No. 2016-13 2016-13 |
Goodwill | 2.8 Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of business acquired. Several factors give rise to goodwill in the Group’s acquisitions, such as the expected benefit from the existing workforce and client service capability of the acquired business. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. Prior to January 1, 2020, the Group performed a two-step 2017-04, accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step two to measure the impairment loss. For the six months ended June 30, 2019 and 2020, no impairment charge was recognized on goodwill. |
Revenue recognition | 2.9 Revenue recognition On January 1, 2019, the Group adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under Topic 605. Based on the Group’s assessment, the adoption of ASC 606 did not have any material impact to the Group’s condensed consolidated financial statements. The following table disaggregates the Group’s revenue by major type for the six months ended June 30, 2019 and 2020, respectively: Six Months ended June 30, 2019 2020 RMB RMB Live streaming 3,062,359,398 4,432,896,655 Advertisement 209,354,384 300,630,398 Other 90,138,741 52,660,776 Total 3,361,852,523 4,786,187,829 Live streaming The Group is principally engaged in operating its own live streaming platforms, which enable streamers and users to interact with each other during live streaming. The users have the option to purchase virtual currency, which is non-refundable The Group has evaluated and determined that it is the principal and views the users to be its customers. Specifically, the Group controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to the users for the delivery of the virtual items as well as having full discretion in establishing pricing for the virtual items. Accordingly, the Group reports its live streaming revenue on a gross basis with amounts billed to users for the virtual items recorded as revenues and the revenue sharing fee paid to streamers or talent agencies recorded as cost of revenues. Sales proceeds are initially recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. The Group has determined that the virtual items represent one performance obligation in the live streaming service. Revenue related to each of the consumable items is recognized at the point in time when the virtual gifts is transferred directly to the streamers and consumed by them, while revenue related to time-based items is recognized ratably over a fixed period on a straight line basis. Although some virtual items have expiry dates, the Group considers that the impact of breakage for the virtual items is insignificant as historical data shows that virtual items are consumed shortly after they are released to users and the forfeiture rate remains relatively low for the periods presented. The Group does not have further performance obligations to the user after the virtual items are consumed. Virtual items may be sold individually or bundled into one arrangement. When the Group’s users purchase multiple virtual items bundled within the same arrangement, the Group allocates the total consideration to each distinct virtual item based on their relative standalone selling prices. In instances where standalone selling price is not directly observable as the Group does not sell the virtual items separately, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. The Group recognizes revenue for each of the distinct virtual item in accordance with the revenue recognition method discussed above unless otherwise stated. Advertisement The Group generates advertisement revenues from rendering of various forms of advertisement services and provision of promotion campaigns on the live streaming platforms by way of advertisement display or integrated promotion activities in shows and programs on the live streaming platforms. Advertisements on the Group’s platforms are generally charged on the basis of duration whereby revenue is recognized ratably over the contract period of display. The Group provides sales incentives in the forms of discounts and rebates to advertisers or advertisement agencies based on purchase volume. Revenue is recognized based on the price charged to the advertisers or agencies, net of sales incentives provided to the advertisers or agencies. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience. For the six months ended June 30, 2019 and 2020, the rebates recorded by the Group were RMB27,326,465 and RMB33,329,604, respectively. Other revenue Other revenue mainly consists of game distribution revenue. Online games developed by third party game developers are displayed through the Group’s platforms to attract users to download and play the games. The Group earns revenues from game developers in accordance with the pre-determined Contract balances Contract balances include accounts receivable, advances from customers and deferred revenue. Accounts receivable represent cash due from third-party application stores as well as from advertising customers and are recorded when the right to consideration is unconditional. The allowance for doubtful accounts reflects the best estimate of probable losses inherent to the account receivable balance. Advances from customers primarily represent cash received from the Group’s advertisement customers. Deferred revenue primarily includes cash received from paying users related to the Group’s live streaming service. Deferred revenue is recognized as revenue when all of the revenue recognition criteria have been met or over the estimated service period. Revenue recognized in the six months ended June 30, 2020 that was included in the deferred revenue balance as of January 1, 2020 was RMB182,819,528. Accounts Advances Deferred RMB RMB RMB Opening Balance as of January 1, 2020 188,099,873 17,134,532 182,819,528 Net change (27,489,397 ) (3,859,585 ) (13,518,930 ) Ending Balance as of June 30, 2020 160,610,476 13,274,947 169,300,598 |
Leases | 2.10 Operating leases as lessee The Group leased offices under operating leases. On January 1, 2020, the Group adopted ASU No. 2016-02, Under the new lease accounting standard, the Group determines if an arrangement is a lease or contains a lease at lease inception. The Group measure the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which was computed using the Group’s incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term when the lessor makes the underlying asset available to the Group. RMB100,318,025 of lease assets and RMB81,851,982 of liabilities were recognized on the balance sheet upon adoption as of January 1, 2020. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Details of the Subsidiaries, VIEs and VIE's Subsidiaries | The details of the principal subsidiaries and VIE through which the Company conducts its business operations as of June 30, 2020 are set out below: Name Place of Date of % of direct Principal activities Wholly foreign-owned enterprise (“WFOE”) Huya Limited Hong Kong January 4, 2017 100 % Investment holding Guangzhou Huya Technology Co., Ltd. (“Huya Technology”) PRC June 16, 2017 100 % Software development HUYA PTE. LTD. Singapore July 23, 2018 100 % Internet value added Hainan Huya Entertainment Information Technology Co., Ltd. (“Hainan Huya”) PRC December 4, 2019 100 % Internet value added VIE Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 100 % Internet value added |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disaggregation of Revenue | The following table disaggregates the Group’s revenue by major type for the period ended June 30, 2019 and 2020: For the six months ended 2019 2020 RMB RMB Live streaming 3,473,967 4,839,547 Advertising and others 167,972 269,645 Total 3,641,939 5,109,192 |
Douyu [Member] | |
Disaggregation of Revenue | The following table disaggregates the Group’s revenue by major type for the six months ended June 30, 2019 and 2020, respectively: Six Months ended June 30, 2019 2020 RMB RMB Live streaming 3,062,359,398 4,432,896,655 Advertisement 209,354,384 300,630,398 Other 90,138,741 52,660,776 Total 3,361,852,523 4,786,187,829 |
Schedule of Financial Statement Amounts and Balances of the VIEs | The following financial statement amounts and balances of the VIEs were included in the accompanying condensed consolidated financial statements after elimination of intercompany transactions and balances: As of December 31, 2019 As of June 30, 2020 RMB RMB ASSETS Cash and cash equivalents 826,481,128 1,038,051,244 Restricted cash 42,902,719 10,702,719 Short-term bank deposits — 210,000,000 Short-term investments — 100,000,000 Accounts receivable, net 176,599,681 145,180,777 Prepayments 12,982,856 86,910,348 Amount due from related parties 13,431,477 14,506,399 Other current assets 82,405,807 110,159,776 Property and equipment, net 17,794,907 13,471,546 Intangible assets, net 130,272,386 141,176,528 Right-of-use — 45,952,175 Investments 147,033,947 326,144,439 Other non-current 1,918,598 4,654,226 Total Assets 1,451,823,506 2,246,910,177 LIABILITIES Accounts payable 794,266,492 1,003,180,314 Advances from customers 16,975,882 9,063,666 Deferred revenue 181,250,993 169,300,598 Accrued expenses and other current liabilities 177,228,742 145,075,307 Amounts due to related parties 59,693,186 246,941,064 Lease liabilities — 43,926,131 Total Liabilities 1,229,415,295 1,617,487,080 Six Months ended June 30, 2019 2020 RMB RMB Net revenue 3,334,443,811 4,733,053,396 Net income 435,102,934 890,624,128 Six Months ended June 30, 2019 2020 RMB RMB Net cash provided by operating activities 81,657,219 692,412,433 Net cash used in investing activities (14,473,970 ) (513,042,317 ) Net cash used in provided by financing activities (1,363,044,149 ) — |
Schedule Of Movement In Accounts Receivable Advances From Customers And Deferred Revenue | Accounts Advances Deferred RMB RMB RMB Opening Balance as of January 1, 2020 188,099,873 17,134,532 182,819,528 Net change (27,489,397 ) (3,859,585 ) (13,518,930 ) Ending Balance as of June 30, 2020 160,610,476 13,274,947 169,300,598 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Douyu [Member] | |
Schedule of other current assets | Other current assets consist of the following: As of 2019 As of June 30, 2020 RMB RMB Interest receivable 53,484,027 29,565,595 Value-added tax recoverable 62,336,003 29,319,498 Funds receivable from third party payment service provider (1) 69,263,440 64,801,248 Content rights 10,589,085 42,152,026 Others 8,637,038 12,905,239 Total 204,309,593 178,743,606 (1) The Group opened accounts with external online payment service providers to collect funding from users. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents Balance | Cash and cash equivalents balance as of December 31, 2019 and June 30, 2020 primarily consist of the following currencies: December 31, 2019 June 30, 2020 Amount RMB equivalent Amount RMB equivalent RMB 475,991 475,991 945,832 945,832 US$ 88,716 618,902 152,759 1,081,460 SGD 3,537 18,300 6,685 33,967 Others (i) — — 1,275 1,265 Total 1,113,193 2,062,524 (i) As of June 30, 2020, the other currencies consist of Hong Kong dollar, Brazilian real and Thai Baht. |
Short-Term Deposits (Tables)
Short-Term Deposits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deposits [Abstract] | |
Schedule of Short-Term Deposits Balance | Short-term deposits as of December 31, 2019 and June 30, 2020 primarily consist of the following currencies: December 31, 2019 June 30, 2020 Amount RMB equivalent Amount RMB equivalent RMB 500,000 500,000 1,130,000 1,130,000 US$ 894,964 6,243,445 728,101 5,154,593 Total 6,743,445 6,284,593 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Short Term Investments [Abstract] | |
Disclosure of Short Term Investments | Short-term investments as of December 31, 2019 and June 30, 2020 primarily consist of the following currencies: December 31, 2019 June 30, 2020 Amount RMB equivalent Amount RMB equivalent RMB 2,211,055 2,211,055 2,398,004 2,398,004 US$ 1,215 8,476 — — Total 2,219,531 2,398,004 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | December 31, June 30, 2019 2020 RMB RMB Accounts receivable, gross 62,630 66,701 Less: expected credit loss provision (922 ) (3,215 ) Accounts receivable, net 61,708 63,486 |
Summary of Credit Loss Provision Related to Accounts Receivable | The following table presents the activity in the expected credit loss provision related to accounts receivable, net for the six months ended June 30, 2020: For the six months 2020 RMB Balance as at December 31, 2019 922 Adoption of ASC Topic 326 3,122 Balance as at January 1, 2020 4,044 Current period provision 846 Current period reversal (1,675 ) Balance as at June 30, 2020 3,215 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Prepayments and other current assets [Abstract] | |
Schedule of Prepayments and Other Current Assets | December 31, June 30, 2019 2020 RMB RMB Prepayments to vendors and content providers 184,744 193,074 Input value-added tax to be deducted 2,059 75,297 Interests receivable 168,739 56,010 Receivables from exercise of vested share options 9,475 20,015 Prepayments to third-party payment platform 7,912 14,613 Loan to a third party 10,000 10,000 Others 17,686 40,052 Less: expected credit loss provision — (572 ) Total 400,615 408,489 |
Summary of expected credit loss provision related to other receivables | The following table presents the activity in the expected credit loss provision related to other receivables for the six months ended June 30, 2020: For the six months 2020 RMB Balance as at December 31, 2019 — Adoption of ASC Topic 326 308 Balance as at January 1, 2020 308 Current period provision 355 Current period reversal (91 ) Balance as at June 30, 2020 572 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Investments | December 31, June 30, 2019 2020 RMB RMB Equity method investments 203,730 203,633 Equity investments without readily determinable fair values (i) 175,694 226,918 379,424 430,551 (i) During the six months ended June 30, 2020, the Company acquired equity interests of two privately-held entities with a total consideration of RMB 49,065 |
Douyu [Member] | |
Schedule of Investments Accounted for Under Equity Method | Equity method investments: As of 2019 As of June 30, 2020 RMB RMB Hangzhou Aijidi Culture Creation Co., Ltd. 4,090,990 3,943,536 Chongqing Yuwan Network Media Co., Ltd. 9,721,472 12,197,828 Hunan Yuyou Starfire Culture Media Co., Ltd. 15,139,902 14,071,419 Wuhan Shayu Network Technology Co., Ltd.(“Shayu”) (1) — 203,545,159 Others (2) 3,849,736 — 32,802,100 233,757,942 (1) In 2016, the Group invested RMB10 million for 8.5% equity interest in Shayu, a live streaming platform in PRC and accounted for this investment as an equity security without a readily determinable fair value. In May 2020, to restructure and increase its investment in Shayu, the Group completed the following transactions: • The Group acquired 19.125% equity interest in Shayu from Mr. Chen Shaojie, the Group’s CEO and shareholder for a cash consideration of RMB24,850,000. The purchase price paid by the Group was below fair value of the acquired equity interest, which is determined to be RMB43,617,750 by the Group with the assistance of an independent valuer. The excess amount of RMB18,767,750 between the fair value of the equity interest acquired in Shayu over the price paid is accounted as contribution from shareholder in the condensed consolidated statement of change in shareholders’ equity. • The Company injected cash of RMB 80,000,000 and its holding of 100% equity interest in Chengdu Shuangsi Culture Broadcasting Co., Ltd (“Shuangsi”) with a fair value determined to be RMB54,391,900 into Shayu, in exchange of 8.309% newly issued equity interest in Shayu. Shuangsi ceased to be a subsidiary of the Group and a gain on disposal of subsidiary in the amount of RMB23,525,694 was recognized in the condensed consolidated statement of comprehensive income, representing the difference between the fair value of Shuangsi and its carrying value at the date of the transaction. Upon the completion of these transactions, the Group has 35.084% equity interest of Shayu and accounts for its investment in Shayu under the equity method. (2) In 2018, the Group made investments in four talent agencies with aggregate cash consideration of RMB3,600,000, none of which was individually material. In April 2020, the Group lost significant influence over these four talent agencies. Thus, these equity method investees with carrying amount of RMB4,077,376 were reclassified as equity securities without readily determinable fair values. |
Schedule of Investments Accounted for Under Equity Securities Without Readily Determinable Fair Values | Equity securities without readily determinable fair values: As of 2019 As of June 30, 2020 RMB RMB Content producers 123,629,785 188,811,526 Technology and software companies 59,102,000 49,102,000 Others 10,000,000 10,000,000 192,731,785 247,913,526 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Douyu [Member] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following: As of 2019 As of June 30, 2020 RMB RMB Accrued payroll and welfare 163,309,115 136,429,979 Marketing cost 112,859,994 90,049,508 Payable for repurchase of ordinary shares 53,293,800 — Deposits 30,566,743 26,579,209 Other tax payable 13,767,363 19,436,104 Others 18,550,109 25,003,182 Total 392,347,124 297,497,982 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 31, June 30, 2019 2020 RMB RMB Gross carrying amount Servers, computers and equipment 142,236 189,929 Leasehold improvements 32,038 33,436 Others 10,603 10,139 Total 184,877 233,504 Less: accumulated depreciation (88,191 ) (115,015 ) Property and equipment, net 96,686 118,489 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Group's Intangible Assets | The following table summarizes the Group’s intangible assets: December 31, June 30, 2019 2020 RMB RMB Gross carrying amount Copyrights of video content 30,021 64,266 License 32,000 32,000 Software 3,125 9,332 Domain names 5,120 5,283 Trademark 1,132 1,132 Total of gross carrying amount 71,398 112,013 Less: accumulated amortization Copyrights of video content (17,689 ) (32,730 ) License (3,556 ) (4,622 ) Software (2,756 ) (5,986 ) Domain names (1,613 ) (1,786 ) Trademark (699 ) (811 ) Total of accumulated amortization (26,313 ) (45,935 ) Intangible assets, net 45,085 66,078 |
Schedule of Estimated Amortization Expenses | The estimated amortization expenses for each of the following five years as of June 30, 2020 are as follows: Twelve months ended June 30 Amortization expense of intangible assets RMB 2021 33,389 2022 5,155 2023 4,143 2024 2,572 2025 2,474 |
Schedule of Weighted Average Amortization Periods of Intangible Assets | The weighted average amortization periods of intangible assets as of December 31, 2019 and June 30, 2020 are as below: December 31, June 30, 2019 2020 Copyrights of video content 2 years 2 years License 15 years 15 years Software 1 year 1 year Domain names 15 years 15 years Trademark 5 years 5 years |
Advances from customers and d_2
Advances from customers and deferred revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Advances from customers and deferred revenue [Abstract] | |
Advances from customers and deferred revenue | December 31, June 30, 2019 2020 RMB RMB Advances from customers 50,961 47,219 Deferred revenue, current 795,005 513,570 Total current advances from customers and deferred revenue 845,966 560,789 Deferred revenue, non-current 164,913 196,990 Total non-current 164,913 196,990 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities and Other Current Liabilities [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | December 31, June 30, 2019 2020 RMB RMB Revenue sharing fees 817,792 939,421 Bandwidth costs 167,793 199,589 Salaries and welfare 251,914 166,012 Marketing and promotion expenses 61,210 65,494 Deposits from content providers, suppliers and advertising customers 47,386 59,982 Other taxes payable 40,349 50,018 License fees 48,138 45,070 Others 25,443 37,335 Total 1,460,025 1,562,921 |
Cost of Revenues (Tables)
Cost of Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Cost of Revenues | For the six months ended 2019 2020 RMB RMB Revenue sharing fees and content costs 2,468,681 3,215,533 Bandwidth costs 364,744 504,924 Salaries and welfare 91,228 148,073 Payment handling costs 44,536 81,598 Share-based compensation 8,290 30,587 Depreciation and amortization 19,949 23,318 Other taxes and surcharges 10,339 22,895 Others 25,131 32,436 Total 3,032,898 4,059,364 |
Douyu [Member] | |
Schedule of Cost of Revenues | Cost of revenues consist of the following: Six months ended June 30, 2019 2020 RMB RMB Bandwidth costs 315,618,557 321,299,441 Revenue sharing fees and content costs 2,394,021,579 3,329,777,086 Others 148,034,307 126,374,354 Total 2,857,674,443 3,777,450,881 |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Current and Deferred Portions of Income Tax Benefits Included in Consolidated Statements of Comprehensive Loss | The current and deferred portions of income tax benefits included in the consolidated statements of operations are as follows: For the six months ended 2019 2020 RMB RMB Current income tax expenses 38,915 141,101 Deferred income tax expenses (benefits) (i) 1,685 (52,259 ) Total income tax expenses 40,600 88,842 (i) The deferred income tax benefits for the six months ended June 30, 2020 represented mainly the deferred tax related to unrealized losses arisen from intercompany transactions. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Summary of Compensation Expense Recognized for Share-Based Awards Granted | Compensation expense recognized for share-based awards granted by JOYY and Huya, respectively, was as follows: For the six months 2019 2020 RMB RMB Share-based compensation expenses —Related to JOYY’s Share-based Awards 1,410 — —Related to Huya Share-based Awards 115,025 218,057 Total 116,435 218,057 |
Schedule of Share Based Compensation Stock Options Activity | Movements in the number of share options granted and their related weighted average exercise prices are as follows: Number of Weighted Weighted As at December 31, 2018 17,520,555 2.5210 8.82 Forfeited (5,750 ) 2.5500 Exercised (714,000 ) 2.2298 As at June 30, 2019 16,800,805 8.32 As at December 31, 2019 15,251,661 2.5458 7.84 Forfeited (18,000 ) 2.5500 Exercised (1,605,752 ) 2.5500 As at June 30, 2020 13,627,909 7.37 Expected to vest at June 30, 2020 — — — Exercisable as at June 30, 2020 13,627,909 2.5453 7.37 |
Summary of Restricted Share Units Activity | The following table summarizes the activity of restricted share units for the six months ended June 30, 2019 and 2020: Number of Weighted grant-date Outstanding, December 31, 2018 4,107,185 9.0331 Granted 413,000 21.9009 Forfeited (62,000 ) 8.1384 Vested (465,000 ) 7.1600 Outstanding, June 30, 2019 3,993,185 10.5960 Outstanding, December 31, 2019 6,279,848 15.4350 Granted 2,126,452 15.7608 Forfeited (274,570 ) 16.8622 Vested (1,540,141 ) 10.0049 Outstanding, June 30, 2020 6,591,589 16.6036 Expected to vest at June 30, 2020 6,071,452 16.4559 |
Restricted Stock [Member] | Douyu [Member] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Non-vested Restricted Stock Shares Activity | A summary of non-vested Number of Weighted grant-date Outstanding as of December 31, 2019 2,049,466 31.50 Vested (62,105 ) 31.50 Forfeited (1) (1,429,906 ) 31.50 Cancellation (2) (557,455 ) 31.50 Outstanding as of June 30, 2020 — — (1) In February 2020, the Group repurchased 1,429,906 shares of unvested restricted shares from one of the Gogo Glocal’s founders with a consideration of US$1 due to the early termination of his requisite employment service, which was considered as a forfeiture of the unvested restricted shares. (2) In February 2020, the Group canceled 557,455 unvested restricted shares granted. The corresponding unrecognized share-based compensation expense of RMB7,451,210 was immediately recognized in the condensed consolidated statement of comprehensive income for the six months ended June 30, 2020. |
Restricted Stock Units (RSUs) [Member] | Douyu [Member] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Non-vested Restricted Stock Shares Activity | A summary of restricted share unit activities during the six months ended June 30, 2020 is presented below: Number of Weighted grant-date Weighted RMB Years Outstanding as of December 31, 2019 1,794,586 274.55 2.58 Vested (347,067 ) 274.55 Forfeited (2,881 ) 274.55 Outstanding as of June 30, 2020 1,444,638 274.55 2.08 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of basic and diluted net Income per share | Basic and diluted net income per share for the six months ended June 30, 2019 and 2020, are calculated as follows: For the six months 2019 2020 RMB RMB Numerator: Net income 185,261 377,984 Numerator for basic and diluted net income per share 185,261 377,984 Denominator: Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding 210,426,174 220,766,682 —Diluted effect of share options 14,345,621 12,566,186 —Diluted effect of restricted share units 3,012,224 2,850,513 Denominator for diluted calculation 227,784,019 236,183,381 Net income per ADS* —Basic 0.88 1.71 —Diluted 0.81 1.60 Net income per ordinary share —Basic 0.88 1.71 —Diluted 0.81 1.60 * Each ADS represents one Class A ordinary share. |
Douyu [Member] | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of basic and diluted net Income per share | Basic and diluted net income per share for each of the year presented were calculated as follows: Six months ended June 30, 2019 2020 RMB RMB Basic net income per share calculation Numerator: Net income attributable to DouYu Holdings Limited shareholders 42,791,087 596,495,450 Amounts allocated to convertible redeemable preferred shares for participating rights to dividends (30,454,311 ) — Net income attributable to ordinary shareholders for computing basic net income per share 12,336,776 596,495,450 Denominator: Weighted average number of ordinary shares used in computing basic income per ordinary share 8,063,790 31,838,618 Basic net income per ordinary share 1.53 18.73 Diluted net income per share calculation Numerator: Net income attributable to ordinary shareholders of DouYu Holdings Limited 12,336,776 596,495,450 Add: undistributed earnings allocated to participating securities 30,454,311 — Net income attributable to ordinary shareholders for computing diluted net income per ordinary share 42,791,087 596,495,450 Denominator: Weighted average number of ordinary shares used in computing basic income per ordinary share 8,063,790 31,838,618 Add: conversion of convertible redeemable preferred shares into ordinary shares 19,906,105 — Restricted Share Units 1,373,846 1,081,472 Weighted average ordinary shares used in computing diluted income per ordinary share 29,343,741 32,920,090 Diluted net income per ordinary share 1.46 18.12 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Significant Related Party Transactions | During the six months ended June 30, 2019 and 2020, significant related party transactions were as follows: Transactions with JOYY For the six months 2019 2020 RMB RMB Purchase of services by JOYY on behalf of Huya 11,266 11,547 Operation support services provided by JOYY (i) 13,160 2,562 Deemed distribution to JOYY 9,278 1,013 Cash collected by JOYY as a payment platform for Huya 1,176,600 — Share-based compensation expenses related to JOYY’s Share-based Awards (Note 18(a)) 1,410 — Others 8,398 1,438 Transactions with Tencent For the six months 2019 2020 RMB RMB Operation support services provided by Tencent (ii) 88,934 162,309 Purchase of copyrights for live streaming from Tencent 81,062 79,192 Payment on behalf of Tencent 12,918 8,610 Advertising revenue from Tencent 4,393 7,336 Market promotion expenses charged by Tencent 1,851 6,322 Cash collected by Tencent as a game operator for Huya — 2,832 Others 79 3,280 (i) Purchases of services from JOYY mainly consist of office rental, payment handling services and bandwidth services which are charged at market price. (ii) Operation support services from Tencent mainly consist of bandwidth and payment handling services which are charged at market price. Transactions with entities over which Tencent has significant influence (“Tencent’s related parties”) For the six months 2019 2020 RMB RMB Purchase of operating rights for live streaming from Tencent’s related parties — 28,089 Bandwidth service provided by Tencent’s related parties — 11,129 Content production costs charged by Tencent’s related parties — 5,216 Market promotion expenses charged by Tencent’s related parties — 3,715 Others — 5,734 |
Schedule of Amounts Due from/to Related Parties | As of December 31, 2019 and June 30, 2020, the amounts due from/to related parties were as follows: December 31, June 30, 2019 2020 RMB RMB Amounts due from related parties Tencent and its related parties 41,129 52,415 JOYY 10,807 — Total 51,936 52,415 Amounts due to related parties Tencent 78,832 168,619 Tencent’s related parties 200 58,722 JOYY — 11,154 Total 79,032 238,495 |
Douyu [Member] | |
Schedule of Major Related Parties and Their Relationships | The table below sets forth major related parties and their relationships with the Group: Company Name Relationship with the Group Tencent Holdings Limited (“Tencent Group”) Parent company of one of our shareholders |
Schedule of Significant Related Party Transactions | For the six months ended June 30, 2019 and 2020, significant related party transactions were as follows: Six months ended June 30, 2019 2020 RMB RMB Live streaming revenue derived from Equity method investees—talent agencies 78,933,963 1,415,094 Advertisement revenue derived from Tencent Group 2,659,943 743,697 Other revenue derived from Tencent Group 14,387,130 5,475,812 Revenue sharing fees and content cost paid to Tencent Group 3,918,816 2,456,153 Equity method investees—talent agencies 353,638,193 476,856,579 Total 357,557,009 479,312,732 Bandwidth fees paid to Tencent Group 117,000,468 105,148,383 Payment handling fees paid to Tencent Group 14,026,878 21,322,748 Content rights purchased from Tencent Group 32,293,475 36,732,755 |
Schedule of Amounts Due from/to Related Parties | As of December 31, 2019 and June 30, 2020, the amounts due from/to related parties are as follows: As of December 31, 2019 As of June 30, 2020 RMB RMB Amount due from related parties Tencent Group 23,935,019 40,172,138 Equity method investees—talent agencies 108,831 361,304 Total 24,043,850 40,533,442 Amount due to related parties Tencent Group 251,069,127 205,046,416 Equity method investees—talent agencies 47,663,895 58,919,469 Total 298,733,022 263,965,885 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Financial Instruments Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2019 and June 30, 2020: As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Short-term investments (i) 108,476 2,111,055 — 2,219,531 As of June 30, 2020 Level 1 Level 2 Level 3 Total Assets Short-term investments (i) — 2,398,004 — 2,398,004 (i) Short-term investments represented the investments issued by commercial banks and financial institution with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair value is provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. For the instruments whose fair value is estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. |
Lease (Tables)
Lease (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Operating Lease | The balances for the operating leases where the Group is the lessee are presented as follows within the balance sheets: As of December 31, As of June 30, RMB RMB Right-of-use 102,824 90,919 Current portion of operating lease liabilities 31,878 31,961 Non-current 70,110 58,837 Total operating lease liabilities 101,988 90,798 |
Douyu [Member] | |
Summary of Lease Cost | For the six months ended June 30, 2020, the lease expense is as: Six months ended June 30, 2020 RMB Operating lease expense 20,925,309 Short-term lease expense 3,889,493 Total lease expense 24,814,802 |
Summary of Operating Lease Liability | Supplemental consolidated balance sheet information related to leases was as follows: As of June 30, 2020 RMB Operating lease: Operating leases right-of-use 85,515,963 Current portion of lease liabilities 44,485,430 Non-current 38,276,429 Total operating lease liabilities Weighted-average remaining lease term (in years)—operating leases 1.12 Weighted-average discount rate—operating leases 4.30 % |
Summary of Operating Lease Payments | Supplemental cash flow information related to leases are as follows: Six months ended June 30, 2020 RMB Cash paid for operating leases 22,472,405 Lease liabilities arising from obtaining right-of-use 23,382,282 |
Summary of Future Minimum Lease Payments | As of June 30, 2020, future minimum lease payments under non-cancellable right-of-use Years ending RMB 2020 (July-December) 30,676,101 2021 39,584,250 2022 12,401,942 2023 3,257,440 2024 and thereafter — Total undiscounted cash flows 85,919,733 Less: imputed interest 3,157,874 Total 82,761,859 Lease liabilities due within one year 44,485,430 Lease liabilities due after one year 38,276,429 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases | As of December 31, 2019, future minimum payments under non-cancellable Twelve months ended December 31 Operating RMB 2020 10,787 2021 5,598 2022 4,086 2023 and thereafter 3,204 23,675 As of June 30, 2020, future minimum payments under non-cancellable Twelve months ended June 30, 2020 Operating RMB 2021 10,860 2022 4,578 2023 4,103 2024 and thereafter 1,196 20,737 |
VIEs (Tables)
VIEs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Condensed Financial Statements [Abstract] | |
Summary of Condensed Financial Statements | The following consolidated financial information of the Group’s VIEs excluding the intercompany items with the Group’s subsidiaries was included in the accompanying consolidated financial statements as of and for the periods ended: December 31, June 30, 2019 2020 RMB RMB Total current assets 2,033,635 1,326,950 Total non-current 634,965 673,603 Total assets 2,668,600 2,000,553 Total current liabilities 1,935,670 1,801,797 Total non-current 169,713 199,794 Total liabilities 2,105,383 2,001,591 For the six months 2019 2020 RMB RMB Net revenues 3,624,897 5,025,445 Net income 455,802 2,898,657 For the six months 2019 2020 RMB RMB Net cash provided by operating activities 1,224,973 2,975,191 Net cash (used in) provided by investing activities (700,423 ) 441,437 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Detail) ¥ in Thousands, $ in Millions | Apr. 03, 2020shares | Apr. 30, 2019USD ($)shares | May 31, 2018USD ($) | Jun. 30, 2019CNY (¥) | Dec. 31, 2018shares |
Organization And Principal Activities [Line Items] | |||||
Issuance of ordinary shares | ¥ | ¥ 2,110,066 | ||||
Tencent Holding Limited [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Percentage of common shares fully diluted | 50.10% | ||||
Percentage of common shares Issued and outstanding | 50.90% | ||||
ADS [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Number of ADS issued and sold in IPO ,in shares | 13,600,000 | 17,250,000 | |||
Issuance of ordinary shares | $ | $ 313.8 | $ 175.7 | |||
Common Class B [Member] | Tencent Holding Limited [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Number of shares transferred | 16,523,819 | ||||
Common Class B [Member] | JOYY Inc [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Number of ADS issued and sold in IPO ,in shares | 4,800,000 | ||||
Number of shares converted into ordinary shares | 4,800,000 |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Details of the Subsidiaries, VIEs and VIE's Subsidiaries (Detail) | 6 Months Ended |
Jun. 30, 2020 | |
Huya Limited [Member] | |
Subsidiaries and Variable Interest Entities [Line Items] | |
Place of incorporation | Hong Kong |
Date of incorporation | Jan. 4, 2017 |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Investment holding |
Guangzhou Huya Technology Co., Ltd. ("Huya Technology") [Member] | |
Subsidiaries and Variable Interest Entities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jun. 16, 2017 |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Software development |
HUYA PTE LTD [Member] | |
Subsidiaries and Variable Interest Entities [Line Items] | |
Place of incorporation | Singapore |
Date of incorporation | Jul. 23, 2018 |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Internet value added services |
Hainan Huya Entertainment Information Technology Co., Ltd. ("Hainan Huya") [Member] | |
Subsidiaries and Variable Interest Entities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Dec. 4, 2019 |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Internet value added services |
Guangzhou Huya Information Technology Company Limited [Member] | |
Subsidiaries and Variable Interest Entities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Aug. 10, 2016 |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Internet value added services |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Detail) | 6 Months Ended | ||||||
Jun. 30, 2020CNY (¥)Segments | Jun. 30, 2019CNY (¥) | Jun. 30, 2020USD ($) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit | ¥ (1,611,137,000) | $ (228,042,000) | ¥ (1,986,054,000) | ||||
Rate of translations of amounts from RMB into US$ | 7.0651 | 7.0651 | |||||
Noble member status duration | 1 month | ||||||
Rebates to advertiser | ¥ 44,324,000 | ¥ 20,986,000 | |||||
Accounts receivable, net | ¥ 63,486,000 | $ 8,986,000 | 61,708,000 | ||||
Number of reportable segment | Segments | 1 | ||||||
Operating lease assets | ¥ 90,919,000 | 12,869,000 | 102,824,000 | ¥ 92,075,000 | |||
Operating lease liabilities | 90,798,000 | 101,988,000 | ¥ 91,654,000 | ||||
Adoption of ASC Topic 326 [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit | 3,067,000 | ||||||
Related Parties Payment Platform [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accounts receivable, net | 23,118,000 | 31,261,000 | ¥ 239,290,000 | ||||
Third Party Payment Platforms [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accounts receivable, net | 50,901,000 | 43,339,000 | 30,507,000 | ||||
Third Party Distribution Platforms [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accounts receivable, net | 5,625,000 | 3,978,000 | 2,941,000 | ||||
Related Party Distribution Platforms [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accounts receivable, net | 670,000 | 687,000 | 0 | ||||
Third Party Advertising [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accounts receivable, net | 10,175,000 | 15,313,000 | 11,323,000 | ||||
Related Party Advertising [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accounts receivable, net | 4,541,000 | 2,994,000 | 5,926,000 | ||||
Douyu [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit | ¥ (2,752,222,410) | $ (389,551,798) | (3,348,717,860) | ||||
Rate of translations of amounts from RMB into US$ | 7.0651 | 7.0651 | |||||
Rebates to advertiser | ¥ 33,329,604,000 | ¥ 27,326,465,000 | |||||
Accounts receivable, net | 160,610,476 | $ 22,732,937 | 188,099,873 | ||||
Deferred Revenue, Revenue Recognized | 182,819,528,000 | ||||||
Operating lease liabilities | ¥ 82,761,859 | ||||||
Percentage Of VIE contribution to consolidated revenue | 99.00% | 99.00% | |||||
Percentage Of VIE accounted of consolidated total assets | 24.00% | 16.00% | |||||
Percentage Of VIE accounted of consolidated total liabilities | 82.00% | 67.00% | |||||
Impairment losses on equity method investments other than temporary | ¥ 0 | ¥ 3,790,443 | |||||
Unrealised gain loss due to unobservable price change | 8,571,429 | 0 | |||||
Impairment losses other than temporary on equity securities without readily determinable fair value | 19,417,064 | 0 | |||||
Goodwill impairment loss | ¥ 0 | 0 | |||||
Douyu [Member] | Accounting Standards Update 2016-02 [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Operating lease assets | ¥ 100,318,025 | ||||||
Operating lease liabilities | ¥ 81,851,982 | ||||||
Maximum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Noble member status duration | 24 months | ||||||
Advertising Revenue [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Period over which payments are due | 3 months | ||||||
Advertising Revenue [Member] | Maximum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Advertising revenues contract term | 3 months | ||||||
Live Streaming [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Deferred Revenue | ¥ 699,716,000 | 951,166,000 | 543,245,000 | ||||
Deferred Revenue, Revenue Recognized | 679,485,000 | 425,536,000 | |||||
Online Games [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Deferred Revenue | 10,844,000 | ¥ 8,752,000 | ¥ 6,867,000 | ||||
Deferred Revenue, Revenue Recognized | ¥ 8,752,000 | ¥ 6,867,000 |
Summary of significant accoun_5
Summary of significant accounting policies - Schedule of Financial Statement Amounts and Balances of the VIEs (Detail) | 6 Months Ended | |||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | |
ASSETS | ||||||
Cash and cash equivalents | ¥ 2,062,524,000 | $ 291,931,000 | ¥ 1,113,193,000 | |||
Restricted cash | 6,175,000 | 874,000 | 1,392,000 | |||
Accounts receivable, net | 63,486,000 | 8,986,000 | 61,708,000 | |||
Amount due from related parties | 52,415,000 | 7,419,000 | 51,936,000 | |||
Other current assets | 40,052,000 | 17,686,000 | ||||
Property and equipment, net | 118,489,000 | 16,771,000 | 96,686,000 | |||
Intangible assets, net | 66,078,000 | 9,353,000 | 45,085,000 | |||
Investments | 430,551,000 | 60,941,000 | 379,424,000 | |||
Total assets | 12,177,656,000 | 1,723,635,000 | 11,366,550,000 | |||
LIABILITIES | ||||||
Accounts payable | 34,714,000 | 4,913,000 | 3,725,000 | |||
Deferred revenue | 560,789,000 | 845,966,000 | ||||
Amounts due to related parties | 238,495,000 | 33,757,000 | 79,032,000 | |||
Lease liabilities | 90,798,000 | 101,988,000 | ¥ 91,654,000 | |||
Total liabilities | 2,768,470,000 | 391,851,000 | 2,681,700,000 | |||
Income Statement | ||||||
Net revenue | 5,109,192,000 | $ 723,159,000 | ¥ 3,641,939,000 | |||
Net income | 377,984,000 | 53,499,000 | 185,261,000 | |||
Statement of Cash Flows | ||||||
Net cash provided by operating activities | 647,263,000 | 91,612,000 | 1,071,562,000 | |||
Net cash used in investing activities | 279,447,000 | 39,553,000 | (2,561,831,000) | |||
Net cash used in provided by financing activities | 18,364,000 | 2,599,000 | 2,124,019,000 | |||
Douyu [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 6,381,495,234 | 4,399,996,338 | 903,242,025 | 8,091,990,270 | ||
Restricted cash | 10,702,719 | 0 | 1,514,872 | 42,902,719 | ||
Short-term bank deposits | 1,696,695,000 | 240,151,590 | 0 | |||
Short-term investments | 14,154,082 | 100,000,000 | 0 | |||
Accounts receivable, net | 160,610,476 | 22,732,937 | 188,099,873 | |||
Prepayments | 98,523,752 | 13,945,132 | 50,304,112 | |||
Amount due from related parties | 40,533,442 | 5,737,136 | 24,043,850 | |||
Other current assets | 178,743,606 | 25,299,515 | 204,309,593 | |||
Property and equipment, net | 35,235,840 | 4,987,309 | 38,909,465 | |||
Intangible assets, net | 188,537,894 | 26,685,807 | 198,056,841 | |||
Right-of-use assets | 85,515,963 | 12,103,999 | 0 | |||
Investments | 481,671,468 | 68,176,171 | 225,533,885 | |||
Other non-current assets | 17,170,800 | 2,430,369 | 8,546,843 | |||
Total assets | 9,489,467,994 | 1,343,147,016 | 9,103,670,339 | |||
LIABILITIES | ||||||
Accounts payable | 1,078,539,829 | 152,657,405 | 890,038,953 | |||
Advances from customers | 13,274,947 | 1,878,947 | 17,134,532 | |||
Deferred revenue | 182,658,465 | 25,853,628 | 195,982,486 | |||
Accrued expenses and other current liabilities | 297,497,982 | 42,108,106 | 392,347,124 | |||
Amounts due to related parties | 263,965,885 | 37,361,946 | 298,733,022 | |||
Lease liabilities | 82,761,859 | |||||
Total liabilities | 1,958,772,569 | $ 277,246,263 | 1,840,306,465 | |||
Income Statement | ||||||
Net revenue | 4,786,187,829 | 677,440,918 | 3,361,852,523 | |||
Net income | 573,796,451 | 81,215,617 | 41,307,277 | |||
Statement of Cash Flows | ||||||
Net cash provided by operating activities | 753,022,028 | 106,583,350 | 308,021,604 | |||
Net cash used in investing activities | (2,041,025,854) | $ (288,888,460) | (103,223,558) | |||
Variable Interest Entities [Member] | Douyu [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 1,038,051,244 | 826,481,128 | ||||
Restricted cash | 10,702,719 | 42,902,719 | ||||
Short-term bank deposits | 210,000,000 | 0 | ||||
Short-term investments | 100,000,000 | 0 | ||||
Accounts receivable, net | 145,180,777 | 176,599,681 | ||||
Prepayments | 86,910,348 | 12,982,856 | ||||
Amount due from related parties | 14,506,399 | 13,431,477 | ||||
Other current assets | 110,159,776 | 82,405,807 | ||||
Property and equipment, net | 13,471,546 | 17,794,907 | ||||
Intangible assets, net | 141,176,528 | 130,272,386 | ||||
Right-of-use assets | 45,952,175 | 0 | ||||
Investments | 326,144,439 | 147,033,947 | ||||
Other non-current assets | 4,654,226 | 1,918,598 | ||||
Total assets | 2,246,910,177 | 1,451,823,506 | ||||
LIABILITIES | ||||||
Accounts payable | 1,003,180,314 | 794,266,492 | ||||
Advances from customers | 9,063,666 | 16,975,882 | ||||
Deferred revenue | 169,300,598 | 181,250,993 | ||||
Accrued expenses and other current liabilities | 145,075,307 | 177,228,742 | ||||
Amounts due to related parties | 246,941,064 | 59,693,186 | ||||
Lease liabilities | 43,926,131 | 0 | ||||
Total liabilities | 1,617,487,080 | ¥ 1,229,415,295 | ||||
Income Statement | ||||||
Net revenue | 4,733,053,396 | 3,334,443,811 | ||||
Net income | 890,624,128 | 435,102,934 | ||||
Statement of Cash Flows | ||||||
Net cash provided by operating activities | 692,412,433 | 81,657,219 | ||||
Net cash used in investing activities | (513,042,317) | (14,473,970) | ||||
Net cash used in provided by financing activities | ¥ 0 | ¥ (1,363,044,149) |
Summary of significant accoun_6
Summary of significant accounting policies - Disaggregation of Revenue (Detail) | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | |||
Revenues | ¥ 5,109,192,000 | $ 723,159,000 | ¥ 3,641,939,000 |
Douyu [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,786,187,829 | 677,440,918 | 3,361,852,523 |
Live Streaming [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,839,547,000 | 684,993,000 | 3,473,967,000 |
Live Streaming [Member] | Douyu [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,432,896,655 | 3,062,359,398 | |
Other Revenues [Member] | Douyu [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 52,660,776 | 90,138,741 | |
Advertising and Others [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 269,645,000 | $ 38,166,000 | 167,972,000 |
Advertisement [Member] | Douyu [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | ¥ 300,630,398 | ¥ 209,354,384 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule Of Contract Balance (Detail) - 6 months ended Jun. 30, 2020 | CNY (¥) | USD ($) |
Opening Balance as of January 1, 2020 | ¥ 61,708,000 | |
Ending Balance as of June 30, 2020 | 63,486,000 | $ 8,986,000 |
Douyu [Member] | ||
Opening Balance as of January 1, 2020 | 188,099,873 | |
Net change | (27,489,397) | |
Ending Balance as of June 30, 2020 | 160,610,476 | 22,732,937 |
Opening Balance as of January 1, 2020 | 17,134,532 | |
Net change | (3,859,585) | |
Ending Balance as of June 30, 2020 | 13,274,947 | $ 1,878,947 |
Opening Balance as of January 1, 2020 | 182,819,528 | |
Net change | (13,518,930) | |
Ending Balance as of June 30, 2020 | ¥ 169,300,598 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Detail) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Total | ¥ 40,052,000 | ¥ 17,686,000 | ||
Douyu [Member] | ||||
Interest receivable | 29,565,595 | 53,484,027 | ||
Value-added tax recoverable | 29,319,498 | 62,336,003 | ||
Funds receivable from third party payment service provider | [1] | 64,801,248 | 69,263,440 | |
Content rights | 42,152,026 | 10,589,085 | ||
Others | 12,905,239 | 8,637,038 | ||
Total | ¥ 178,743,606 | $ 25,299,515 | ¥ 204,309,593 | |
[1] | The Group opened accounts with external online payment service providers to collect funding from users. |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents Balance (Detail) ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2020SGD ($) | Jun. 30, 2020HKD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019SGD ($) | Dec. 31, 2019HKD ($) | |
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | ¥ 2,062,524 | $ 291,931 | ¥ 1,113,193 | ||||||
Others [Member] | |||||||||
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | [1] | 1,265 | $ 1,275 | 0 | $ 0 | ||||
RMB [Member] | |||||||||
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | 945,832 | 475,991 | |||||||
US$ [Member] | |||||||||
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | 1,081,460 | $ 152,759 | 618,902 | $ 88,716 | |||||
SGD [Member] | |||||||||
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | ¥ 33,967 | $ 6,685 | ¥ 18,300 | $ 3,537 | |||||
[1] | As of June 30, 2020, the other currencies consist of Hong Kong dollar, Brazilian real and Thai Baht. |
Restricted cash - Additional In
Restricted cash - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Restricted Cash and Cash Equivalents, Current [Abstract] | |||
Restricted Cash Current | ¥ 6,175 | $ 874 | ¥ 1,392 |
Short-Term Deposits - Schedule
Short-Term Deposits - Schedule of Short-Term Deposits Balance (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Short Term Deposits [Line Items] | ||||
Short Term Deposits | ¥ 6,284,593 | ¥ 6,743,445 | ||
RMB [Member] | ||||
Short Term Deposits [Line Items] | ||||
Short Term Deposits | 1,130,000 | 500,000 | ||
US$ [Member] | ||||
Short Term Deposits [Line Items] | ||||
Short Term Deposits | ¥ 5,154,593 | $ 728,101 | ¥ 6,243,445 | $ 894,964 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Of Short Term Investments (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Disclosure Of Short Term Investments [Line Items] | ||||
Short-term investments | ¥ 2,398,004 | $ 339,415 | ¥ 2,219,531 | |
RMB [Member] | ||||
Disclosure Of Short Term Investments [Line Items] | ||||
Short-term investments | 2,398,004 | 2,211,055 | ||
US$ [Member] | ||||
Disclosure Of Short Term Investments [Line Items] | ||||
Short-term investments | ¥ 0 | $ 0 | ¥ 8,476 | $ 1,215 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Receivables [Abstract] | |||
Accounts receivable, gross | ¥ 66,701 | ¥ 62,630 | |
Less: expected credit loss provision | (3,215) | (922) | |
Accounts receivable, net | ¥ 63,486 | $ 8,986 | ¥ 61,708 |
Accounts Receivable, Net - Summ
Accounts Receivable, Net - Summary of Credit Loss Provision Related to Accounts Receivable (Detail) ¥ in Thousands | 6 Months Ended |
Jun. 30, 2020CNY (¥) | |
Expected credit loss provision related to accounts receivable, net | |
Balance as at December 31, 2019 | ¥ 922 |
Adoption of ASC Topic 326 | 3,122 |
Balance as at January 1, 2020 | 4,044 |
Current period provision | 846 |
Current period reversal | (1,675) |
Balance as at June 30, 2020 | ¥ 3,215 |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Schedule of Prepayments and Other Current Assets (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Prepayments and other current assets [Abstract] | |||
Prepayments to vendors and content providers | ¥ 193,074 | ¥ 184,744 | |
Input value-added tax to be deducted | 75,297 | 2,059 | |
Interests receivable | 56,010 | 168,739 | |
Receivables from exercise of vested share options | 20,015 | 9,475 | |
Prepayments to third-party payment platforms | 14,613 | 7,912 | |
Loan to a third party | 10,000 | 10,000 | |
Others | 40,052 | 17,686 | |
Less: expected credit loss provision | (572) | 0 | |
Total | ¥ 408,489 | $ 57,818 | ¥ 400,615 |
Prepayments and Other Current_4
Prepayments and Other Current Assets - Summary of credit loss provision related to accounts receivable (Detail) ¥ in Thousands | 6 Months Ended |
Jun. 30, 2020CNY (¥) | |
Expected credit loss provision related to other receivables [Abstract] | |
Balance as at December 31, 2019 | ¥ 0 |
Adoption of ASC Topic 326 | 308 |
Balance as at January 1, 2020 | 308 |
Current period provision | 355 |
Current period reversal | (91) |
Balance as at June 30, 2020 | ¥ 572 |
Investments - Additional Inform
Investments - Additional Information (Detail) - Douyu [Member] - CNY (¥) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, impairment loss | ¥ 0 | ¥ 3,790,443 |
Impairment losses other than temporary on equity securities without readily determinable fair value | 19,417,064 | 0 |
Equity securities without readily determinable fair value, upward price adjustment | ¥ 8,571,429 | ¥ 0 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - CNY (¥) ¥ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Investments | |||
Equity method investments | ¥ 203,633 | ¥ 203,730 | |
Equity investments without readily determinable fair values | [1] | 226,918 | 175,694 |
Total investments | ¥ 430,551 | ¥ 379,424 | |
[1] | During the six months ended June 30, 2020, the Company acquired equity interests of two privately-held entities with a total consideration of RMB49,065. |
Investments - Schedule of Inv_2
Investments - Schedule of Investments (Parenthetical) (Detail) ¥ in Thousands | 6 Months Ended |
Jun. 30, 2020CNY (¥) | |
Investments [Line Items] | |
Consideration paid for equity investments without readily determinable fair values | ¥ 49,065 |
Number of businesses acquired | 2 |
Investments - Schedule of Inv_3
Investments - Schedule of Investments Accounted for Under Equity Method (Detail) - CNY (¥) ¥ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | ¥ 203,633 | ¥ 203,730 | |
Douyu [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 233,757,942 | 32,802,100 | |
Douyu [Member] | Hangzhou Aijidi Culture Creation Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 3,943,536 | 4,090,990 | |
Douyu [Member] | Chongqing Yuwan Network Media Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 12,197,828 | 9,721,472 | |
Douyu [Member] | Hunan Yuyou Starfire Culture Media Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 14,071,419 | 15,139,902 | |
Douyu [Member] | Wuhan Shayu Network Technology Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | [1] | 203,545,159 | 0 |
Douyu [Member] | Others [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | [2] | ¥ 0 | ¥ 3,849,736 |
[1] | In 2016, the Group invested RMB10 million for 8.5% equity interest in Shayu, a live streaming platform in PRC and accounted for this investment as an equity security without a readily determinable fair value. In May 2020, to restructure and increase its investment in Shayu, the Group completed the following transactions: The Group acquired 19.125% equity interest in Shayu from Mr. Chen Shaojie, the Group’s CEO and shareholder for a cash consideration of RMB24,850,000. The purchase price paid by the Group was below fair value of the acquired equity interest, which is determined to be RMB43,617,750 by the Group with the assistance of an independent valuer. The excess amount of RMB18,767,750 between the fair value of the equity interest acquired in Shayu over the price paid is accounted as contribution from shareholder in the condensed consolidated statement of change in shareholders’ equity. The Company injected cash of RMB 80,000,000 and its holding of 100% equity interest in Chengdu Shuangsi Culture Broadcasting Co., Ltd (“Shuangsi”) with a fair value determined to be RMB54,391,900 into Shayu, in exchange of 8.309% newly issued equity interest in Shayu. Shuangsi ceased to be a subsidiary of the Group and a gain on disposal of subsidiary in the amount of RMB23,525,694 was recognized in the condensed consolidated statement of comprehensive income, representing the difference between the fair value of Shuangsi and its carrying value at the date of the transaction. Upon the completion of these transactions, the Group has 35.084% equity interest of Shayu and accounts for its investment in Shayu under the equity method. | ||
[2] | In 2018, the Group made investments in four talent agencies with aggregate cash consideration of RMB3,600,000, none of which was individually material. In April 2020, the Group lost significant influence over these four talent agencies. Thus, these equity method investees with carrying amount of RMB4,077,376 were reclassified as equity securities without readily determinable fair values. |
Investments - Schedule of Inv_4
Investments - Schedule of Investments Accounted for Under Equity Method (Parenthetical) (Detail) - CNY (¥) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | ||
Payment for Equity Method Investment [Line Items] | |||||
Equity investments without readily determinable fair values | [1] | ¥ 226,918,000 | ¥ 175,694,000 | ||
Douyu [Member] | |||||
Payment for Equity Method Investment [Line Items] | |||||
Equity investments without readily determinable fair values | 247,913,526 | ¥ 192,731,785 | |||
Douyu [Member] | Wuhan Shayu Network Technology Co., Ltd [Member] | Chief Executive Officer [Member] | |||||
Payment for Equity Method Investment [Line Items] | |||||
Fair value of equity method investments | ¥ 43,617,750 | ||||
Wuhan Shayu Network Technology Co., Ltd [Member] | Douyu [Member] | |||||
Payment for Equity Method Investment [Line Items] | |||||
Percentage of equity method investment acquired | 8.309% | 8.50% | |||
Payment for equity method investment | ¥ 10,000,000 | ||||
Wuhan Shayu Network Technology Co., Ltd [Member] | Douyu [Member] | Chief Executive Officer [Member] | |||||
Payment for Equity Method Investment [Line Items] | |||||
Percentage of equity method investment acquired | 19.125% | ||||
Payment for equity method investment | ¥ 24,850,000 | ||||
Contribution from shareholder in connection with equity method investment | ¥ 18,767,750 | ||||
Wuhan Shayu Network Technology Co., Ltd [Member] | Douyu [Member] | Total Ownership Interest [Member] | |||||
Payment for Equity Method Investment [Line Items] | |||||
Percentage of equity method investment acquired | 35.084% | ||||
Chengdu Shuangsi Culture Broadcasting Co., Ltd. ("Shuangsi") [Member] | Douyu [Member] | |||||
Payment for Equity Method Investment [Line Items] | |||||
Percentage of equity method investment acquired | 100.00% | ||||
Payment for equity method investment | ¥ 80,000,000 | ||||
Fair value of equity method investments | 54,391,900 | ||||
Gain loss on disposal of equity method investments | 23,525,694 | ||||
Four Talent Agencies [Member] | Douyu [Member] | |||||
Payment for Equity Method Investment [Line Items] | |||||
Payment for equity method investment | ¥ 3,600,000 | ||||
Equity investments without readily determinable fair values | ¥ 4,077,376 | ||||
[1] | During the six months ended June 30, 2020, the Company acquired equity interests of two privately-held entities with a total consideration of RMB49,065. |
Investments - Schedule of Inv_5
Investments - Schedule of Investments Accounted for Under Equity Securities Without Readily Determinable Fair Values (Detail) - CNY (¥) | Jun. 30, 2020 | Dec. 31, 2019 | |
Schedule of Equity Investments Without Readily Determinable Fair Values [Line Items] | |||
Equity securities without readily determinable fair values | [1] | ¥ 226,918,000 | ¥ 175,694,000 |
Douyu [Member] | |||
Schedule of Equity Investments Without Readily Determinable Fair Values [Line Items] | |||
Equity securities without readily determinable fair values | 247,913,526 | 192,731,785 | |
Douyu [Member] | Content Producers [Member] | |||
Schedule of Equity Investments Without Readily Determinable Fair Values [Line Items] | |||
Equity securities without readily determinable fair values | 188,811,526 | 123,629,785 | |
Douyu [Member] | Technology And Software Companies [Member] | |||
Schedule of Equity Investments Without Readily Determinable Fair Values [Line Items] | |||
Equity securities without readily determinable fair values | 49,102,000 | 59,102,000 | |
Douyu [Member] | Others [Member] | |||
Schedule of Equity Investments Without Readily Determinable Fair Values [Line Items] | |||
Equity securities without readily determinable fair values | ¥ 10,000,000 | ¥ 10,000,000 | |
[1] | During the six months ended June 30, 2020, the Company acquired equity interests of two privately-held entities with a total consideration of RMB49,065. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - Douyu [Member] | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accrued payroll and welfare | ¥ 136,429,979 | ¥ 163,309,115 | |
Marketing cost | 90,049,508 | 112,859,994 | |
Payable for repurchase of ordinary shares | 0 | 53,293,800 | |
Deposits | 26,579,209 | 30,566,743 | |
Other tax payable | 19,436,104 | 13,767,363 | |
Others | 25,003,182 | 18,550,109 | |
Total | ¥ 297,497,982 | $ 42,108,106 | ¥ 392,347,124 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Servers, computers and equipment | ¥ 189,929 | ¥ 142,236 | |
Leasehold improvements | 33,436 | 32,038 | |
Others | 10,139 | 10,603 | |
Total | 233,504 | 184,877 | |
Less: accumulated depreciation | (115,015) | (88,191) | |
Property and equipment, net | ¥ 118,489 | $ 16,771 | ¥ 96,686 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | ¥ 27,024 | $ 3,825 | ¥ 20,245 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Group's Intangible Assets (Detail) - CNY (¥) ¥ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total of gross carrying amount | ¥ 112,013 | ¥ 71,398 |
Total accumulated amortization | (45,935) | (26,313) |
Intangible assets, net | 66,078 | 45,085 |
License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total of gross carrying amount | 32,000 | 32,000 |
Total accumulated amortization | (4,622) | (3,556) |
Copyrights of Video Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total of gross carrying amount | 64,266 | 30,021 |
Total accumulated amortization | (32,730) | (17,689) |
Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total of gross carrying amount | 5,283 | 5,120 |
Total accumulated amortization | (1,786) | (1,613) |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total of gross carrying amount | 9,332 | 3,125 |
Total accumulated amortization | (5,986) | (2,756) |
Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total of gross carrying amount | 1,132 | 1,132 |
Total accumulated amortization | ¥ (811) | ¥ (699) |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Amortization expense | |||
Amortization expense | ¥ 19,622 | $ 2,777 | ¥ 7,672 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Estimated Amortization Expenses (Detail) ¥ in Thousands | Jun. 30, 2020CNY (¥) |
Estimated amortization expenses [Abstract] | |
2021 | ¥ 33,389 |
2022 | 5,155 |
2023 | 4,143 |
2024 | 2,572 |
2025 | ¥ 2,474 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Weighted Average Amortization Periods of Intangible Assets (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 15 years | 15 years |
Copyrights of Video Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 2 years | 2 years |
Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 15 years | 15 years |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 1 year | 1 year |
Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 5 years | 5 years |
Advances from customers and d_3
Advances from customers and deferred revenue (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Advances from customers and deferred revenue [Abstract] | |||
Advances From Customers | ¥ 47,219 | ¥ 50,961 | |
Deferred revenue, current | 513,570 | 795,005 | |
Total current advances from customers and deferred revenue | 560,789 | 845,966 | |
Deferred revenue, non-current | 196,990 | 164,913 | |
Total non-current deferred revenue | ¥ 196,990 | $ 27,882 | ¥ 164,913 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accrued Liabilities and Other Current Liabilities [Abstract] | |||
Revenue sharing fees | ¥ 939,421 | ¥ 817,792 | |
Bandwidth costs | 199,589 | 167,793 | |
Salaries and welfare | 166,012 | 251,914 | |
Marketing and promotion expenses | 65,494 | 61,210 | |
Deposits from content providers, suppliers and advertising customers | 59,982 | 47,386 | |
Other taxes payable | 50,018 | 40,349 | |
License fees | 45,070 | 48,138 | |
Others | 37,335 | 25,443 | |
Total | ¥ 1,562,921 | $ 221,217 | ¥ 1,460,025 |
Cost of Revenues - Schedule of
Cost of Revenues - Schedule of Cost of Revenues (Detail) | 6 Months Ended | |||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | ||
Cost of revenues | [1] | ¥ 4,059,364,000 | $ 574,566,000 | ¥ 3,032,898,000 |
Douyu [Member] | ||||
Cost of revenues | 3,777,450,881 | $ 534,663,470 | 2,857,674,443 | |
Revenue Sharing Fees and Content Costs [Member] | ||||
Cost of revenues | 3,215,533,000 | 2,468,681,000 | ||
Revenue Sharing Fees and Content Costs [Member] | Douyu [Member] | ||||
Cost of revenues | 3,329,777,086 | 2,394,021,579 | ||
Bandwidth Costs [Member] | ||||
Cost of revenues | 504,924,000 | 364,744,000 | ||
Bandwidth Costs [Member] | Douyu [Member] | ||||
Cost of revenues | 321,299,441 | 315,618,557 | ||
Salaries and Welfare [Member] | ||||
Cost of revenues | 148,073,000 | 91,228,000 | ||
Payment Handling Costs [Member] | ||||
Cost of revenues | 81,598,000 | 44,536,000 | ||
Share Based Compensation [Member] | ||||
Cost of revenues | 30,587,000 | 8,290,000 | ||
Depreciation and Amortization [Member] | ||||
Cost of revenues | 23,318,000 | 19,949,000 | ||
Other Taxes And Surcharges [Member] | ||||
Cost of revenues | 22,895,000 | 10,339,000 | ||
Others [Member] | ||||
Cost of revenues | 32,436,000 | 25,131,000 | ||
Others [Member] | Douyu [Member] | ||||
Cost of revenues | ¥ 126,374,354 | ¥ 148,034,307 | ||
[1] | Share-based compensation was allocated to cost of revenues and operating expenses as follows: For the six months ended June 30,2019 2020 2020 RMB RMB US$ Cost of revenues 8,290 30,587 4,329 Research and development expenses 25,755 71,518 10,123 Sales and marketing expenses 1,811 5,118 724 General and administrative expenses 80,579 110,834 15,688 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) ¥ in Thousands, $ in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2020CNY (¥) | Jun. 30, 2019 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Jun. 30, 2020HKD ($) | Jun. 30, 2020USD ($) | |
Income Tax Disclosure [Line Items] | |||||||||
Value added tax rate | 6.00% | 6.00% | |||||||
Surcharge on VAT paid | 12.00% | 12.00% | |||||||
Income tax rate percentage | 25.00% | ||||||||
High and New Technology Enterprises [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Preferential tax rate, remainder of fiscal year | 15.00% | ||||||||
Preferential tax rate, in two years | 15.00% | ||||||||
Preferential tax rate, in three years | 15.00% | ||||||||
Preferential tax rate, in four years | 15.00% | ||||||||
Key National Software Enterprise [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate percentage | 15.00% | ||||||||
Reduction in tax rate for stated period following the exemption period | 10.00% | ||||||||
HONG KONG | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate percentage | 16.50% | ||||||||
Profit tax on taxable income | $ 2 | ||||||||
HONG KONG | Minimum [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate percentage | 8.25% | ||||||||
CHINA | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate percentage | 25.00% | ||||||||
Percentage of research and development expenses entitled to claim by enterprise | 50.00% | 75.00% | |||||||
PRC withholding tax rate | 10.00% | ||||||||
Deferred tax liability | $ 0 | ||||||||
CHINA | Software Enterprise [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Exemption period for income tax | 2 years | ||||||||
Reduction in tax rate for stated period following the exemption period | 50.00% | ||||||||
CHINA | High and New Technology Enterprises [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate percentage | 25.00% | ||||||||
Exemption period for income tax | 3 years | ||||||||
Preferential tax rate | 15.00% | ||||||||
CHINA | Variable Interest Entity (VIE) [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Income tax rate percentage | 25.00% | ||||||||
SINGAPORE | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Effect of different tax rates available to different jurisdictions | 17.00% | ||||||||
Inland Revenue, Hong Kong [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Minimum ownership percentage to be held by foreign investors, description | income tax of 10% on dividends distributed by a FIE | ||||||||
PRC withholding tax rate | 5.00% | ||||||||
CAYMAN ISLANDS | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Effect of different tax rates available to different jurisdictions | ¥ | ¥ 0 |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portions of Income Tax Benefits Included in Consolidated Statements of Comprehensive Loss (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |||
Income Tax Disclosure [Line Items] | |||||
Current income tax expenses | ¥ 141,101 | ¥ 38,915 | |||
Deferred income tax expenses (benefits) | (52,259) | [1] | $ (7,397) | 1,685 | [1] |
Total income tax expenses | ¥ 88,842 | $ 12,575 | ¥ 40,600 | ||
[1] | The deferred income tax benefits for the six months ended June 30, 2020 represented mainly the deferred tax related to unrealized losses arisen from intercompany transactions. |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) - shares | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Class A [Member] | ||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||||
Common shares, shares outstanding | 70,054,088 | 63,789,170 | 67,101,314 | 44,639,737 |
Stock issued during period shares stock options exercised with restricted stock award forfeited | 2,952,774 | 749,433 | ||
Common Class B [Member] | ||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||||
Common shares, shares outstanding | 152,357,321 | 154,357,321 | 152,357,321 | 159,157,321 |
Number of shares Conversion of During Period | 4,800,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Compensation Expense Recognized for Share-Based Awards Granted (Detail) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-based compensation expenses | ¥ 218,057 | ¥ 116,435 |
Huya [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-based compensation expenses | 218,057 | 115,025 |
JOYY Inc [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-based compensation expenses | 0 | 1,410 |
JOYY Inc [Member] | Huya [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-based compensation expenses | ¥ 75,699 | ¥ 62,618 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | Apr. 03, 2020CNY (¥) | Jun. 30, 2020CNY (¥)Installmentshares | Jun. 30, 2020USD ($)Installmentshares | Jun. 30, 2019CNY (¥)shares | Feb. 29, 2020CNY (¥) | Dec. 31, 2018shares | Dec. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | ¥ 218,057,000 | ¥ 116,435,000 | |||||
Share based compensation expenses | 218,057,000 | $ 30,864,000 | 116,435,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | 142,358,000 | ¥ 52,407,000 | |||||
Unrecognized compensation expense | ¥ 443,180,000 | ||||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 1 month 24 days | 1 year 1 month 24 days | |||||
Share-based compensation arrangement by share-based payment award, granted | shares | 2,126,452 | 2,126,452 | 413,000 | ||||
Restricted Stock Units (RSUs) [Member] | Douyu International Holdings [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | ¥ 67,298,503 | ||||||
Restricted Stock Units One [Member] | Vested after 24 months of the grant date [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 years | 24 years | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50.00% | 50.00% | |||||
Restricted Stock Units One [Member] | Vested in two equal installments over the following 24 months [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 years | 24 years | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50.00% | 50.00% | |||||
Restricted Stock Units Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 48 years | 48 years | |||||
Number of equal vesting installments | Installment | 4 | 4 | |||||
Huya 2017 Share Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | shares | 28,394,117 | 17,647,058 | |||||
Allocated share-based compensation expense | ¥ 218,057,000 | ¥ 115,025,000 | |||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | 10 years | |||||
Share based compensation arrangement by share based payment award accelerated compensation cost | ¥ 57,737,000 | ||||||
Huya 2017 Share Incentive Plan [Member] | Option One [Member] | Vested after 24 months of the grant date [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | 24 months | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50.00% | 50.00% | |||||
Huya 2017 Share Incentive Plan [Member] | Option One [Member] | Vested in two equal installments over the following 24 months [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | 24 months | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50.00% | 50.00% | |||||
Huya 2017 Share Incentive Plan [Member] | Option Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 48 months | 48 months | |||||
Number of equal vesting installments | Installment | 4 | 4 | |||||
Huya 2017 Share Incentive Plan [Member] | Option Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | 24 months | |||||
Number of equal vesting installments | Installment | 4 | 4 | |||||
Huya 2017 Share Incentive Plan [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, granted | shares | 0 | 0 | 0 | ||||
2018 Restricted Share Unit Scheme [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized share-based compensation expense | ¥ 275,210,925 | ||||||
JOYY Inc [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | 0 | ¥ 1,410,000 | |||||
JOYY Inc [Member] | Huya 2017 Share Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | 75,699,000 | 62,618,000 | |||||
Douyu [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation expenses | 75,703,063 | $ 10,715,073 | 45,212,934 | ||||
Douyu [Member] | Restricted Stock [Member] | Gogo Glocal Holding Limited [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation expenses | 8,029,560 | ¥ 45,212,932 | |||||
Total unrecognized share-based compensation expense | ¥ 0 | ¥ 7,451,210 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Number of options, Beginning balance | 15,251,661 | 17,520,555 | 17,520,555 | |
Number of options, Forfeited | (18,000) | (5,750) | ||
Number of options Exercised | (1,605,752) | (714,000) | ||
Number of options, Ending balance | 13,627,909 | 16,800,805 | 15,251,661 | 17,520,555 |
Number of options, Expected to vest | 0 | |||
Number of options, Exercisable | 13,627,909 | |||
Weighted average exercise price, Beginning balance | $ 2.5458 | $ 2.5210 | $ 2.5210 | |
Weighted average exercise price Exercised | 2.5500 | $ 2.2298 | ||
Weighted average exercise price, Ending balance | $ 2.5458 | $ 2.5210 | ||
Weighted average exercise price, Expected to vest | 0 | |||
Weighted average exercise price, Exercisable | $ 2.5453 | |||
Weighted average remaining contractual life | 7 years 4 months 13 days | 8 years 3 months 25 days | 7 years 10 months 2 days | 8 years 9 months 25 days |
Weighted average remaining contractual life, Exercisable | 7 years 4 months 13 days |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of The Restricted Share Units Activity (Detail) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020$ / sharesshares | Jun. 30, 2020¥ / shares$ / sharesshares | Jun. 30, 2019$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2019¥ / sharesshares | ||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning ,Weighted | $ / shares | $ 15.4350 | $ 9.0331 | $ 9.0331 | |||
Granted | $ / shares | 15.7608 | 21.9009 | ||||
Forfeited | $ / shares | 16.8622 | 8.1384 | ||||
Vested | $ / shares | 10.0049 | 7.1600 | ||||
Ending ,Weighted | $ / shares | 16.6036 | $ 10.5960 | $ 15.4350 | |||
Expected to vest Weighted | $ / shares | $ 16.4559 | $ 16.4559 | ||||
Beginning, RSU | 6,279,848 | 6,279,848 | 4,107,185 | 4,107,185 | 4,107,185 | |
Granted | 2,126,452 | 2,126,452 | 413,000 | |||
Forfeited | (274,570) | (274,570) | (62,000) | |||
Vested | (1,540,141) | (1,540,141) | (465,000) | |||
Ending, RSU | 6,591,589 | 6,591,589 | 3,993,185 | 6,279,848 | 6,279,848 | |
Expected to vest RSU | 6,071,452 | 6,071,452 | ||||
Restricted Stock [Member] | Douyu [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning ,Weighted | ¥ / shares | $ 31.50 | |||||
Forfeited | ¥ / shares | [1] | 31.50 | ||||
Vested | ¥ / shares | 31.50 | |||||
Ending ,Weighted | ¥ / shares | $ 0 | ¥ 31.50 | ||||
Beginning, RSU | 2,049,466 | 2,049,466 | ||||
Forfeited | [1] | (1,429,906) | (1,429,906) | |||
Vested | (62,105) | (62,105) | ||||
Ending, RSU | 0 | 0 | 2,049,466 | 2,049,466 | ||
Restricted Stock Units (RSUs) [Member] | Douyu [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Beginning ,Weighted | ¥ / shares | $ 274.55 | |||||
Forfeited | ¥ / shares | 274.55 | |||||
Vested | ¥ / shares | 274.55 | |||||
Ending ,Weighted | ¥ / shares | $ 274.55 | ¥ 274.55 | ||||
Beginning, RSU | 1,794,586 | 1,794,586 | ||||
Forfeited | (2,881) | (2,881) | ||||
Vested | (347,067) | (347,067) | ||||
Ending, RSU | 1,444,638 | 1,444,638 | 1,794,586 | 1,794,586 | ||
Weighted average remaining contractual life | 2 years 29 days | 2 years 29 days | 2 years 6 months 29 days | 2 years 6 months 29 days | ||
[1] | In February 2020, the Group repurchased 1,429,906 shares of unvested restricted shares from one of the Gogo Glocal’s founders with a consideration of US$1 due to the early termination of his requisite employment service, which was considered as a forfeiture of the unvested restricted shares. |
Share-based compensation - Sc_2
Share-based compensation - Schedule of non-vested restricted equity activity (Detail) - Restricted Stock [Member] | 6 Months Ended | ||||
Jun. 30, 2020$ / sharesshares | Jun. 30, 2020¥ / sharesshares | Jun. 30, 2019$ / sharesshares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning, RSU | 6,279,848 | 6,279,848 | 4,107,185 | ||
Vested | (1,540,141) | (1,540,141) | (465,000) | ||
Forfeited | (274,570) | (274,570) | (62,000) | ||
Ending, RSU | 6,591,589 | 6,591,589 | 3,993,185 | ||
Beginning ,Weighted | $ / shares | $ 15.4350 | $ 9.0331 | |||
Vested | $ / shares | 10.0049 | 7.1600 | |||
Forfeited | $ / shares | 16.8622 | 8.1384 | |||
Ending ,Weighted | $ / shares | $ 16.6036 | $ 10.5960 | |||
Douyu [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning, RSU | 2,049,466 | 2,049,466 | |||
Vested | (62,105) | (62,105) | |||
Forfeited | (1,429,906) | [1] | (1,429,906) | [1] | |
Cancellation | (557,455) | [2] | (557,455) | [2] | |
Ending, RSU | 0 | 0 | |||
Beginning ,Weighted | ¥ / shares | ¥ 31.50 | ||||
Vested | ¥ / shares | 31.50 | ||||
Forfeited | ¥ / shares | 31.50 | [1] | |||
Cancellation | $ / shares | $ 31.50 | [2] | |||
Ending ,Weighted | ¥ / shares | ¥ 0 | ||||
[1] | In February 2020, the Group repurchased 1,429,906 shares of unvested restricted shares from one of the Gogo Glocal’s founders with a consideration of US$1 due to the early termination of his requisite employment service, which was considered as a forfeiture of the unvested restricted shares. | ||||
[2] | In February 2020, the Group canceled 557,455 unvested restricted shares granted. The corresponding unrecognized share-based compensation expense of RMB7,451,210 was immediately recognized in the condensed consolidated statement of comprehensive income for the six months ended June 30, 2020. |
Share-based compensation - Sc_3
Share-based compensation - Schedule of non-vested restricted equity activity (Parenthetical) (Detail) | 1 Months Ended | 5 Months Ended | 6 Months Ended | |||
Feb. 29, 2020CNY (¥)shares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2019shares | Feb. 01, 2020$ / shares | ||
Restricted Stock [Member] | ||||||
Share based compensation by share based payment arrangement other than options forfeited during the period shares | 274,570 | 62,000 | ||||
Douyu [Member] | Gogo Glocal Holding Limited [Member] | ||||||
Share based compensation by share based payment arrangement shres relating to restricted stock award forfeited | 1,429,906 | |||||
Repurchase price per share | $ / shares | $ 1 | |||||
Douyu [Member] | Restricted Stock [Member] | ||||||
Share based compensation by share based payment arrangement other than options forfeited during the period shares | [1] | 1,429,906 | ||||
Douyu [Member] | Restricted Stock [Member] | Gogo Glocal Holding Limited [Member] | ||||||
Share based compensation by share based payment arrangement other than options forfeited during the period shares | 557,455 | |||||
Share based compensation cost would be immediately recognized | ¥ | ¥ 7,451,210 | ¥ 0 | ¥ 0 | |||
[1] | In February 2020, the Group repurchased 1,429,906 shares of unvested restricted shares from one of the Gogo Glocal’s founders with a consideration of US$1 due to the early termination of his requisite employment service, which was considered as a forfeiture of the unvested restricted shares. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Douyu [Member] - CHINA - Customer Concentration Risk [Member] | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 92.37% | 100.00% |
LongLived Assets [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 97.44% | 100.00% |
Net income per share - Schedule
Net income per share - Schedule of Basic and Diluted Net Loss Per Ordinary Share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | ||
Numerator: | ||||
Net income | ¥ 377,984 | $ 53,499 | ¥ 185,261 | |
Numerator for basic and diluted net income per share | ¥ 377,984 | $ 53,499 | ¥ 185,261 | |
Denominator: | ||||
Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding | 220,766,682 | 220,766,682 | 210,426,174 | |
—Diluted effect of share options | 12,566,186 | 12,566,186 | 14,345,621 | |
—Diluted effect of restricted share units | 2,850,513 | 2,850,513 | 3,012,224 | |
Denominator for diluted calculation | 236,183,381 | 236,183,381 | 227,784,019 | |
Net income | ||||
Basic | (per share) | ¥ 1.71 | $ 0.24 | ¥ 0.88 | |
Diluted | (per share) | 1.60 | 0.23 | 0.81 | |
ADS [Member] | ||||
Net income | ||||
Basic | (per share) | [1] | 1.71 | 0.24 | 0.88 |
Diluted | (per share) | [1] | ¥ 1.60 | $ 0.23 | ¥ 0.81 |
[1] | Each ADS represents one Class A ordinary share. |
Net Income Per Share and Net In
Net Income Per Share and Net Income Attributable to Ordinary Shareholders - Schedule of Basic and Diluted Net Income Per Share (Detail) ¥ / shares in Units, $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | |
Numerator: | |||
Net income attributable to DouYu Holdings Limited shareholders | ¥ 377,984,000 | $ 53,499 | ¥ 185,261,000 |
Denominator: | |||
Weighted average number of ordinary shares used in computing basic income per ordinary share | 220,766,682 | 220,766,682 | 210,426,174 |
Basic net income per ordinary share | (per share) | ¥ 1.71 | $ 0.24 | ¥ 0.88 |
Denominator: | |||
Weighted average number of ordinary shares used in computing basic income per ordinary share | 220,766,682 | 220,766,682 | 210,426,174 |
Restricted Share Units | 2,850,513 | 2,850,513 | 3,012,224 |
Weighted average ordinary shares used in computing diluted income per ordinary share | 236,183,381 | 236,183,381 | 227,784,019 |
Diluted net income per ordinary share | (per share) | ¥ 1.60 | $ 0.23 | ¥ 0.81 |
Douyu [Member] | |||
Numerator: | |||
Net income attributable to DouYu Holdings Limited shareholders | ¥ | ¥ 596,495,450 | ¥ 42,791,087 | |
Amounts allocated to convertible redeemable preferred shares for participating rights to dividends | ¥ | 0 | (30,454,311) | |
Net income attributable to ordinary shareholders for computing basic net income per share | ¥ | ¥ 596,495,450 | ¥ 12,336,776 | |
Denominator: | |||
Weighted average number of ordinary shares used in computing basic income per ordinary share | 31,838,618 | 31,838,618 | 8,063,790 |
Basic net income per ordinary share | (per share) | ¥ 18.73 | $ 2.65 | ¥ 1.53 |
Numerator: | |||
Net income attributable to ordinary shareholders of DouYu Holdings Limited | ¥ | ¥ 596,495,450 | ¥ 12,336,776 | |
Add: undistributed earnings allocated to participating securities | ¥ | 0 | 30,454,311 | |
Net income attributable to ordinary shareholders for computing diluted net income per ordinary share | ¥ | ¥ 596,495,450 | ¥ 42,791,087 | |
Denominator: | |||
Weighted average number of ordinary shares used in computing basic income per ordinary share | 31,838,618 | 31,838,618 | 8,063,790 |
Add: conversion of convertible redeemable preferred shares into ordinary shares | 0 | 0 | 19,906,105 |
Restricted Share Units | 1,081,472 | 1,081,472 | 1,373,846 |
Weighted average ordinary shares used in computing diluted income per ordinary share | 32,920,090 | 32,920,090 | 29,343,741 |
Diluted net income per ordinary share | (per share) | ¥ 18.12 | $ 2.56 | ¥ 1.46 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of major related parties and their relationships (Detail) | 6 Months Ended |
Jun. 30, 2020 | |
Douyu [Member] | Tencent Holdings Limited [Member] | |
Related Party Transaction [Line Items] | |
Nature of company relationship with the group | Parent company of one of our shareholders |
Related Party Transactions - _2
Related Party Transactions - Schedule of the Amounts Due from/to Related Parties (Detail) $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Amounts due from related parties | |||
Total | ¥ 52,415,000 | $ 7,419 | ¥ 51,936,000 |
Amounts due to related parties | |||
Total | 238,495,000 | $ 33,757 | 79,032,000 |
Douyu International Holdings [Member] | |||
Amounts due from related parties | |||
Total | 40,533,442 | 24,043,850 | |
Amounts due to related parties | |||
Total | 263,965,885 | 298,733,022 | |
JOYY Inc [Member] | |||
Amounts due from related parties | |||
Total | 0 | 10,807,000 | |
Amounts due to related parties | |||
Total | 11,154,000 | 0 | |
Tencent Holdings Limited [Member] | |||
Amounts due to related parties | |||
Total | 168,619,000 | 78,832,000 | |
Tencent Holdings Limited [Member] | Douyu International Holdings [Member] | |||
Amounts due from related parties | |||
Total | 40,172,138 | 23,935,019 | |
Amounts due to related parties | |||
Total | 205,046,416 | 251,069,127 | |
Equity method investees talent agencies [Member] | Douyu International Holdings [Member] | |||
Amounts due from related parties | |||
Total | 361,304 | 108,831 | |
Amounts due to related parties | |||
Total | 58,919,469 | 47,663,895 | |
Tencent and its related parties | |||
Amounts due from related parties | |||
Total | 52,415,000 | 41,129,000 | |
Tencent's related parties | |||
Amounts due to related parties | |||
Total | ¥ 58,722,000 | ¥ 200,000 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Significant Related Party Transactions (Detail) - CNY (¥) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Related Party Transaction [Line Items] | |||
Share-based compensation expenses | ¥ 218,057,000 | ||
Doyu Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Paid to related party | 479,312,732 | ¥ 357,557,009 | |
JOYY Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Cash collected by JOYY as a payment platform for Huya | 0 | 1,176,600,000 | |
Purchase of services by JOYY on behalf of Huya | 11,547,000 | 11,266,000 | |
Operation support services | [1] | 2,562,000 | 13,160,000 |
Share-based compensation expenses | 0 | 1,410,000 | |
Others | 1,438,000 | 8,398,000 | |
Deemed distribution to JOYY | 1,013,000 | 9,278,000 | |
Tencent Holdings Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Operation support services | [2] | 162,309,000 | 88,934,000 |
Purchase of copyrights for live streaming from Tencent | 79,192,000 | 81,062,000 | |
Revenue from related parties | 7,336,000 | 4,393,000 | |
Others | 3,280,000 | 79,000 | |
Payment on behalf of Tencent | 8,610,000 | 12,918,000 | |
Market promotion expenses charged by Tencent | 6,322,000 | 1,851,000 | |
Cash collected by Tencent as a game operator for Huya | 2,832,000 | ||
Tencent Holdings Limited [Member] | Doyu Inc [Member] | Advertisement Revenue [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 743,697 | 2,659,943 | |
Tencent Holdings Limited [Member] | Doyu Inc [Member] | Revenue Sharing Fees And Content Cost [Member] | |||
Related Party Transaction [Line Items] | |||
Paid to related party | 2,456,153 | 3,918,816 | |
Tencent Holdings Limited [Member] | Doyu Inc [Member] | Bandwidth Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Paid to related party | 105,148,383 | 117,000,468 | |
Tencent Holdings Limited [Member] | Doyu Inc [Member] | Payment Handling Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Paid to related party | 21,322,748 | 14,026,878 | |
Tencent Holdings Limited [Member] | Doyu Inc [Member] | Content Rights [Member] | |||
Related Party Transaction [Line Items] | |||
Purchased from related parties | 36,732,755 | 32,293,475 | |
Tencent Holdings Limited [Member] | Doyu Inc [Member] | Others [Member] | |||
Related Party Transaction [Line Items] | |||
Other revenue | 5,475,812 | 14,387,130 | |
Tencent's related parties [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase of operating rights for live streaming from Tencent's related parties | 28,089,000 | ||
Bandwidth service provided by Tencent's related parties | 11,129,000 | ||
Content production costs charged by Tencent's related parties | 5,216,000 | ||
Market promotion expenses charged by Tencent's related parties | 3,715,000 | ||
Others | 5,734,000 | ||
Equity Method Investees Talent Agencies [Member] | Doyu Inc [Member] | Live Streaming Revenue [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 1,415,094 | 78,933,963 | |
Equity Method Investees Talent Agencies [Member] | Doyu Inc [Member] | Revenue Sharing Fees And Content Cost [Member] | |||
Related Party Transaction [Line Items] | |||
Paid to related party | ¥ 476,856,579 | ¥ 353,638,193 | |
[1] | Purchases of services from JOYY mainly consist of office rental, payment handling services and bandwidth services which are charged at market price. | ||
[2] | Operation support services from Tencent mainly consist of bandwidth and payment handling services which are charged at market price. |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Measured or Disclosed at Fair Value on Recurring Basis (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Assets | ||||
Short-term investments | ¥ 2,398,004 | $ 339,415 | ¥ 2,219,531 | |
Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [1] | 2,398,004 | 2,219,531 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [1] | 0 | 108,476 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [1] | 2,398,004 | 2,111,055 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [1] | ¥ 0 | ¥ 0 | |
[1] | Short-term investments represented the investments issued by commercial banks and financial institution with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair value is provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. For the instruments whose fair value is estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. |
Lease - Summary of Operating Le
Lease - Summary of Operating Leases (Detail) ¥ in Thousands, $ in Thousands | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) |
Operating Leased Assets [Line Items] | ||||
Right-of-use assets | ¥ 90,919 | $ 12,869 | ¥ 102,824 | ¥ 92,075 |
Current portion of operating lease liabilities | 31,961 | 4,524 | 31,878 | |
Non-current operating lease liabilities | 58,837 | $ 8,328 | 70,110 | |
Total operating lease liabilities | ¥ 90,798 | ¥ 101,988 | ¥ 91,654 |
Lease - Summary of Operating _2
Lease - Summary of Operating Lease Liability (Detail) | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Operating lease: | |||
Current portion of lease liabilities | ¥ 31,961,000 | $ 4,524,000 | ¥ 31,878,000 |
Non-current portion of lease liabilities | 58,837,000 | 8,328,000 | 70,110,000 |
Douyu [Member] | |||
Operating lease: | |||
Operating leases right-of-use assets | 85,515,963 | 12,103,999 | 0 |
Current portion of lease liabilities | 44,485,430 | 6,296,504 | 0 |
Non-current portion of lease liabilities | ¥ 38,276,429 | $ 5,417,677 | ¥ 0 |
Weighted-average remaining lease term (in years) – operating leases | 1 year 1 month 13 days | 1 year 1 month 13 days | |
Weighted-average discount rate – operating leases | 4.30% | 4.30% | |
Cash paid for operating leases | ¥ 22,472,405 | ||
Lease liabilities arising from obtaining right-of-use assets | ¥ 23,382,282 |
Lease- Summary of Lease Cost (D
Lease- Summary of Lease Cost (Detail) - Douyu [Member] - CNY (¥) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating lease expense | ¥ 20,925,309 | |
Short-term lease expense | 3,889,493 | |
Total lease expense | ¥ 24,814,802 | ¥ 21,269,358,000 |
Lease - Future Minimum Lease Pa
Lease - Future Minimum Lease Payments (Detail) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) |
Total | ¥ 90,798,000 | ¥ 101,988,000 | ¥ 91,654,000 | |
Lease liabilities due within one year | 31,961,000 | $ 4,524,000 | 31,878,000 | |
Lease liabilities due after one year | 58,837,000 | 8,328,000 | 70,110,000 | |
Douyu [Member] | ||||
2020 (July-December) | 30,676,101 | |||
2021 | 39,584,250 | |||
2022 | 12,401,942 | |||
2023 | 3,257,440 | |||
2024 and thereafter | 0 | |||
Total undiscounted cash flows | 85,919,733 | |||
Less: imputed interest | 3,157,874 | |||
Total | 82,761,859 | |||
Lease liabilities due within one year | 44,485,430 | 6,296,504 | 0 | |
Lease liabilities due after one year | ¥ 38,276,429 | $ 5,417,677 | ¥ 0 |
Lease - Additional Information
Lease - Additional Information (Detail) - CNY (¥) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Douyu [Member] | ||
Total office rental expenses under all operating leases | ¥ 24,814,802 | ¥ 21,269,358,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2020 | |
Outstanding capital commitments | ¥ 0 | |
Loss Contingency estimated | ¥ 35,400 | |
Non Compete Agreement Infringement [Member] | Douyu [Member] | ||
Damages Sought Value | ¥ 66,700 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) - CNY (¥) ¥ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
2020 | ¥ 10,787 | |
2021 | ¥ 10,860 | 5,598 |
2022 | 4,578 | 4,086 |
2023 and thereafter | 4,103 | 3,204 |
2024 and thereafter | 1,196 | |
Future minimum payments operating leases | ¥ 20,737 | ¥ 23,675 |
VIEs - Summary of Condensed Fin
VIEs - Summary of Condensed Financial Statements (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Condensed Financial Statements, Captions [Line Items] | |||||
Total current assets | ¥ 11,275,686 | $ 1,595,969 | ¥ 10,591,820 | ||
Total non-current assets | 901,970 | 127,666 | 774,730 | ||
Total assets | 12,177,656 | 1,723,635 | 11,366,550 | ||
Total current liabilities | 2,512,103 | 355,565 | 2,446,677 | ||
Total non-current liabilities | 256,367 | 36,286 | 235,023 | ||
Total liabilities | 2,768,470 | $ 391,851 | 2,681,700 | ||
Net revenues | 5,109,192 | $ 723,159 | ¥ 3,641,939 | ||
Net income | 377,984 | 53,499 | 185,261 | ||
Net cash provided by operating activities | 647,263 | 91,612 | 1,071,562 | ||
Net cash (used in) provided by investing activities | 279,447 | $ 39,553 | (2,561,831) | ||
Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Total current assets | 1,326,950 | 2,033,635 | |||
Total non-current assets | 673,603 | 634,965 | |||
Total assets | 2,000,553 | 2,668,600 | |||
Total current liabilities | 1,801,797 | 1,935,670 | |||
Total non-current liabilities | 199,794 | 169,713 | |||
Total liabilities | 2,001,591 | ¥ 2,105,383 | |||
Net revenues | 5,025,445 | 3,624,897 | |||
Net income | 2,898,657 | 455,802 | |||
Net cash provided by operating activities | 2,975,191 | 1,224,973 | |||
Net cash (used in) provided by investing activities | ¥ 441,437 | ¥ (700,423) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | Oct. 12, 2020USD ($) |
Subsequent Event [Line Items] | |
Cash dividend | $ 200 |
Penguin Business [Member] | |
Subsequent Event [Line Items] | |
Business Combination, Consideration Transferred | 500 |
Parent Company [Member] | Penguin Business [Member] | |
Subsequent Event [Line Items] | |
Business Combination, Consideration Transferred | $ 500 |