Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | HUYA Inc. |
Entity Central Index Key | 0001728190 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Transition Report | false |
Document Annual Report | true |
Document Shell Company Report | false |
Entity Interactive Data Current | Yes |
Entity File Number | 001-38482 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Building A3, E-Park |
Entity Address, Address Line Two | 280 Hanxi Road |
Entity Address, City or Town | Panyu District |
Entity Address, Postal Zip Code | 511446 |
Entity Address, Country | CN |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Guangzhou, the People’s Republic of China |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Rongjie Dong, Chief Executive Officer |
Contact Personnel Email Address | ir@huya.com |
Entity Address, Address Line One | Building A3, E-Park |
Entity Address, Address Line Two | 280 Hanxi Road |
Entity Address, City or Town | Panyu District |
Entity Address, Postal Zip Code | 511446 |
Entity Address, Country | CN |
City Area Code | 86 20 |
Local Phone Number | 2290-7888 |
Common Class A [Member] | |
Document Information [Line Items] | |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 86,993,764 |
Security Exchange Name | NYSE |
Title of 12(b) Security | Class A ordinary shares |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 151,076,517 |
American Depository Shares [Member] | |
Document Information [Line Items] | |
Trading Symbol | HUYA |
Security Exchange Name | NYSE |
Title of 12(b) Security | American Depositary Shares |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 1,790,784 | $ 281,013 | ¥ 3,293,573 |
Restricted cash | 55,670 | 8,736 | 164,889 |
Short-term deposits | 8,351,945 | 1,310,602 | 5,974,790 |
Short-term investments | 816,331 | 128,100 | 1,206,539 |
Accounts receivable, net of allowance of RMB4,449 and RMB2,296 for 2020 and 2021, respectively | 88,034 | 13,814 | 71,237 |
Amounts due from related parties, net of allowance of RMB299 and RMB393 for 2020 and 2021, respectively | 148,560 | 23,312 | 64,802 |
Prepayments and other current assets, net of allowance of RMB324 and RMB23 for 2020 and 2021, respectively | 664,945 | 104,344 | 495,108 |
Total current assets | 11,916,269 | 1,869,921 | 11,270,938 |
Non-current assets | |||
Deferred tax assets | 20,245 | 3,177 | 48,313 |
Investments | 608,617 | 95,505 | 467,206 |
Property and equipment, net | 79,611 | 12,493 | 94,555 |
Intangible assets, net | 83,942 | 13,172 | 62,796 |
Right-of-use assets, net | 395,371 | 62,042 | 87,418 |
Prepayments and other non-current assets | 150,887 | 23,677 | 379,461 |
Total non-current assets | 1,338,673 | 210,066 | 1,139,749 |
Total assets | 13,254,942 | 2,079,987 | 12,410,687 |
Current liabilities (including amounts of the consolidated variable interest entity and its subsidiaries ("VIEs") without recourse to the Company of RMB1,056,227 and RMB1,057,062 as of December 31, 2020 and 2021, respectively) | |||
Accounts payable | 12,579 | 1,974 | 10,083 |
Advances from customers and deferred revenue | 459,509 | 72,107 | 485,878 |
Income taxes payable | 5,944 | 933 | 56,861 |
Accrued liabilities and other current liabilities | 1,845,452 | 289,588 | 1,707,289 |
Amounts due to related parties | 216,128 | 33,915 | 95,457 |
Lease liabilities due within one year | 36,473 | 5,723 | 29,227 |
Total current liabilities | 2,576,085 | 404,240 | 2,384,795 |
Non-current liabilities (including amounts of the consolidated VIEs without recourse to the Company of RMB178,684 and RMB120,329 as of December 31, 2020 and 2021, respectively) | |||
Lease liabilities | 45,084 | 7,075 | 57,620 |
Deferred tax liabilities | 4,597 | 721 | 13,350 |
Deferred revenue | 118,975 | 18,670 | 178,144 |
Total non-current liabilities | 168,656 | 26,466 | 249,114 |
Total liabilities | 2,744,741 | 430,706 | 2,633,909 |
Commitments and contingencies (Note 25) | |||
Shareholders' equity | |||
Additional paid-in capital | 11,764,059 | 1,846,038 | 11,465,575 |
Statutory reserves | 122,429 | 19,212 | 122,429 |
Accumulated deficit | (1,300,144) | (204,021) | (1,883,643) |
Accumulated other comprehensive income (loss) | (76,300) | (11,973) | 72,262 |
Total shareholders' equity | 10,510,201 | 1,649,281 | 9,776,778 |
Total liabilities and shareholders' equity | 13,254,942 | 2,079,987 | 12,410,687 |
Class A ordinary shares (US$0.0001 par value; 750,000,000 and 750,000,000 shares authorized, 83,490,841 and 86,993,764 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | |||
Shareholders' equity | |||
Ordinary shares | 58 | 9 | 55 |
Class B ordinary shares (US$0.0001 par value; 200,000,000 and 200,000,000 shares authorized, 152,357,321 and 151,076,517 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | |||
Shareholders' equity | |||
Ordinary shares | ¥ 99 | $ 16 | ¥ 100 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares |
Accounts receivable, allowance for credit losses, current | ¥ | ¥ 2,296 | ¥ 4,449 | ||
Amounts due from related parties, allowance for credit losses, current | ¥ | 393 | 299 | ||
Prepayments and other current assets, allowance for credit losses, current | ¥ | 23 | 324 | ||
Current liabilities | 2,576,085 | $ 404,240 | 2,384,795 | |
Non-current liabilities | 168,656 | $ 26,466 | 249,114 | |
Variable Interest Entity (VIE) [Member] | Nonrecourse [Member] | ||||
Current liabilities | ¥ | 1,057,062 | 1,056,227 | ||
Non-current liabilities | ¥ | ¥ 120,329 | ¥ 178,684 | ||
Common Class A [Member] | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 | |
Common stock, shares issued | 86,993,764 | 86,993,764 | 83,490,841 | |
Common stock, shares outstanding | 86,993,764 | 86,993,764 | 83,490,841 | |
Common Class B [Member] | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | |
Common stock, shares issued | 151,076,517 | 151,076,517 | 152,357,321 | |
Common stock, shares outstanding | 151,076,517 | 151,076,517 | 152,357,321 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |||||
Net revenues | ||||||||
Total net revenues | ¥ 11,351,446 | $ 1,781,290 | ¥ 10,914,374 | ¥ 8,374,501 | ||||
Cost of revenues (1) | (9,751,160) | (1,530,170) | (8,646,308) | (6,892,579) | ||||
Gross Profit | 1,600,286 | 251,120 | 2,268,066 | 1,481,922 | ||||
Operating expenses (1) | ||||||||
Research and development expenses | (818,882) | (128,500) | (734,261) | (508,714) | ||||
Sales and marketing expenses | (759,507) | (119,183) | (558,012) | (438,396) | ||||
General and administrative expenses | (326,772) | (51,278) | (445,006) | (352,824) | ||||
Total operating expenses | (1,905,161) | (298,961) | (1,737,279) | (1,299,934) | ||||
Other income | 274,704 | 43,107 | 194,169 | 79,390 | ||||
Operating income (loss) | (30,171) | (4,734) | 724,956 | 261,378 | ||||
Interest and short-term investments income | 247,009 | 38,761 | 313,366 | 304,491 | ||||
Gain on fair value change of investment | 44,161 | 6,930 | 2,160 | |||||
Other non-operating expenses | ¥ | (10,010) | |||||||
Foreign currency exchange gains (losses), net | (1,480) | (232) | 2,056 | 1,157 | ||||
Income before income tax expenses | 259,519 | 40,725 | 1,032,528 | 567,026 | ||||
Income tax expenses | (55,227) | (8,666) | (176,784) | (96,078) | ||||
Income before share of (loss) income in equity method investments, net of income taxes | 204,292 | 32,059 | 855,744 | 470,948 | ||||
Share of (loss) income in equity method investments, net of income taxes | 379,207 | 59,506 | 28,414 | (2,775) | ||||
Net income attributable to HUYA Inc. | 583,499 | 91,565 | 884,158 | 468,173 | ||||
Net income attributable to ordinary shareholders | 583,499 | 91,565 | 884,158 | 468,173 | ||||
Net income | 583,499 | 91,565 | 884,158 | 468,173 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments, net of nil tax | (148,562) | (23,313) | (451,873) | 157,568 | ||||
Total comprehensive income attributable to HUYA Inc. | ¥ 434,937 | $ 68,252 | ¥ 432,285 | ¥ 625,741 | ||||
Net income per share | ||||||||
Basic | (per share) | ¥ 2.45 | $ 0.38 | [1] | ¥ 3.89 | [1] | ¥ 2.18 | [1] | |
Diluted | (per share) | ¥ 2.41 | $ 0.38 | [1] | ¥ 3.71 | [1] | ¥ 2.02 | [1] | |
Weighted average number of shares used in calculating net income per share | ||||||||
Basic | 238,198,117 | 238,198,117 | 227,081,238 | 214,811,862 | ||||
Diluted | 241,790,445 | 241,790,445 | 238,631,613 | 232,024,961 | ||||
ADS [Member] | ||||||||
Net income per share | ||||||||
Basic | (per share) | [1] | ¥ 2.45 | $ 0.38 | ¥ 3.89 | ¥ 2.18 | |||
Diluted | (per share) | [1] | ¥ 2.41 | $ 0.38 | ¥ 3.71 | ¥ 2.02 | |||
Weighted average number of shares used in calculating net income per share | ||||||||
Basic | 238,198,117 | 238,198,117 | 227,081,238 | 214,811,862 | ||||
Diluted | 241,790,445 | 241,790,445 | 238,631,613 | 232,024,961 | ||||
Live Streaming [Member] | ||||||||
Net revenues | ||||||||
Total net revenues | ¥ 10,186,204 | $ 1,598,438 | ¥ 10,311,624 | ¥ 7,976,214 | ||||
Advertising and others [Member] | ||||||||
Net revenues | ||||||||
Total net revenues | ¥ 1,165,242 | $ 182,852 | ¥ 602,750 | ¥ 398,287 | ||||
[1] | Each ADS represents one Class A ordinary share. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Share-based compensation | ¥ 289,705 | ¥ 408,208 | ¥ 281,744 | |
Cost of Revenues [Member] | ||||
Share-based compensation | 56,629 | $ 8,886 | 64,942 | 31,593 |
Research and Development Expenses [Member] | ||||
Share-based compensation | 135,316 | 21,234 | 150,723 | 86,296 |
Sales and Marketing Expenses [Member] | ||||
Share-based compensation | 8,318 | 1,305 | 9,879 | 5,919 |
General and Administrative Expenses [Member] | ||||
Share-based compensation | ¥ 89,442 | $ 14,035 | ¥ 182,664 | ¥ 157,936 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity ¥ in Thousands, $ in Thousands | 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 (¥) | Huya 2018 Share Incentive Plan [Member]CNY (¥) | Common Class A [Member]shares | Common Class B [Member]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]Huya 2018 Share Incentive Plan [Member]CNY (¥) | Statutory reserves [Member]CNY (¥) | Statutory reserves [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]Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Accumulated other comprehensive income (loss) [Member]CNY (¥) | Accumulated other comprehensive income (loss) [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥) | Common Stock [Member]Common Class A [Member]CNY (¥)shares | Common Stock [Member]Common Class A [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥)shares | Common Stock [Member]Common Class A [Member]JOYY Inc [Member]CNY (¥)shares | Common Stock [Member]Common Class B [Member]CNY (¥)shares | Common Stock [Member]Common Class B [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member]CNY (¥)shares | Common Stock [Member]Common Class B [Member]JOYY Inc [Member]CNY (¥)shares |
Beginning balance at Dec. 31, 2018 | ¥ 5,645,007 | ¥ 7,667,855 | ¥ 34,634 | ¥ (2,424,182) | ¥ 366,567 | ¥ 29 | ¥ 104 | ||||||||||||||||||
Beginning balance, shares at Dec. 31, 2018 | shares | 44,639,737 | 159,157,321 | |||||||||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares | ¥ 4 | ¥ (4) | |||||||||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares | shares | 6,800,000 | (6,800,000) | |||||||||||||||||||||||
Issuance of ordinary shares | 2,110,066 | 2,110,057 | ¥ 9 | ||||||||||||||||||||||
Issuance of ordinary shares, shares | shares | 13,600,000 | ||||||||||||||||||||||||
Share-based compensation | ¥ 1,996 | ¥ 279,748 | ¥ 1,996 | ¥ 279,748 | |||||||||||||||||||||
Issuance of ordinary shares for exercised share options | ¥ 32,411 | 32,409 | ¥ 2 | ||||||||||||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 2,011,144 | 2,011,144 | 2,011,144 | ||||||||||||||||||||||
Issuance of ordinary shares for restricted share units, shares | shares | 50,433 | ||||||||||||||||||||||||
Deemed distribution to JOYY | ¥ (10,119) | (10,119) | |||||||||||||||||||||||
Appropriation to statutory reserves | 0 | 30,045 | (30,045) | ||||||||||||||||||||||
Net income | 468,173 | 468,173 | |||||||||||||||||||||||
Foreign currency translation adjustment, net of nil tax | 157,568 | 157,568 | |||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | 8,684,850 | ¥ 8,681,783 | ¥ (3,067) | 10,081,946 | ¥ 10,081,946 | 64,679 | ¥ 64,679 | (1,986,054) | ¥ (1,989,121) | ¥ (3,067) | 524,135 | ¥ 524,135 | ¥ 44 | ¥ 44 | ¥ 100 | ¥ 100 | |||||||||
Ending balance, shares at Dec. 31, 2019 | shares | 67,101,314 | 152,357,321 | 67,101,314 | 67,101,314 | 152,357,321 | 152,357,321 | |||||||||||||||||||
Share-based compensation | 408,208 | 408,208 | |||||||||||||||||||||||
Issuance of ordinary shares for exercised share options | ¥ 255,515 | 255,505 | ¥ 10 | ||||||||||||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 14,440,921 | 14,440,921 | 14,440,921 | ||||||||||||||||||||||
Issuance of ordinary shares for restricted share units | (1) | ¥ 1 | |||||||||||||||||||||||
Issuance of ordinary shares for restricted share units, shares | shares | 1,948,606 | ||||||||||||||||||||||||
Deemed distribution to JOYY | ¥ (1,013) | (1,013) | |||||||||||||||||||||||
Appropriation to statutory reserves | 57,750 | (57,750) | |||||||||||||||||||||||
Increase in VIE's share capital by transferring VIE's retain earnings | 720,930 | (720,930) | |||||||||||||||||||||||
Net income | 884,158 | 884,158 | |||||||||||||||||||||||
Foreign currency translation adjustment, net of nil tax | (451,873) | (451,873) | |||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | 9,776,778 | 11,465,575 | 122,429 | (1,883,643) | 72,262 | ¥ 55 | ¥ 100 | ||||||||||||||||||
Ending balance, shares at Dec. 31, 2020 | shares | 83,490,841 | 152,357,321 | 83,490,841 | 152,357,321 | |||||||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares | ¥ 1 | ¥ (1) | |||||||||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares | shares | 1,280,804 | (1,280,804) | |||||||||||||||||||||||
Share-based compensation | ¥ 289,705 | ¥ 289,705 | |||||||||||||||||||||||
Issuance of ordinary shares for exercised share options | ¥ 8,780 | 8,779 | ¥ 1 | ||||||||||||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 533,425 | 533,425 | 533,425 | ||||||||||||||||||||||
Issuance of ordinary shares for restricted share units | ¥ 1 | ¥ 1 | |||||||||||||||||||||||
Issuance of ordinary shares for restricted share units, shares | shares | 1,688,694 | ||||||||||||||||||||||||
Appropriation to statutory reserves | 0 | ||||||||||||||||||||||||
Net income | 583,499 | $ 91,565 | 583,499 | ||||||||||||||||||||||
Foreign currency translation adjustment, net of nil tax | (148,562) | (23,313) | (148,562) | ||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | ¥ 10,510,201 | $ 1,649,281 | ¥ 11,764,059 | ¥ 122,429 | ¥ (1,300,144) | ¥ (76,300) | ¥ 58 | ¥ 99 | |||||||||||||||||
Ending balance, shares at Dec. 31, 2021 | shares | 86,993,764 | 151,076,517 | 86,993,764 | 151,076,517 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash flows from operating activities | ||||
Net income attributable to HUYA Inc. | ¥ 583,499 | $ 91,565 | ¥ 884,158 | ¥ 468,173 |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation of property and equipment | 49,875 | 7,826 | 58,440 | 45,455 |
Amortization of acquired intangible assets | 39,239 | 6,157 | 44,362 | 17,080 |
Amortization of right-of-use assets | 35,901 | 5,634 | 28,376 | 25,229 |
Allowance for (reversal of) expected credit losses | (2,360) | (370) | 517 | 0 |
Gain on disposal of property and equipment and other long-term assets | (1,504) | (236) | (648) | (1,621) |
Share-based compensation | 289,705 | 45,460 | 408,208 | 281,744 |
Share of loss (income) in equity method investments, net of income taxes | (379,207) | (59,506) | (28,414) | 2,775 |
Other non-cash income | (1,013) | (10,119) | ||
Deferred income tax (benefits) expenses | 32,125 | 5,041 | 18,608 | (14,871) |
Gain on fair value changes of investments | (44,161) | (6,930) | (2,160) | |
Short-term investments income | (16,331) | (2,563) | (6,539) | (21,497) |
Foreign currency exchange (gains) losses, net | 1,480 | 232 | (2,056) | (1,157) |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (16,059) | (2,520) | (13,058) | (17,909) |
Prepayments and other assets | (245,555) | (38,533) | (59,336) | (115,353) |
Amounts due from related parties | (83,847) | (13,157) | (12,121) | 186,903 |
Accounts payable | 3,839 | 602 | 4,288 | 90 |
Amounts due to related parties | 120,675 | 18,937 | 16,421 | 44,359 |
Advances from customers and deferred revenue | (85,538) | (13,423) | (346,857) | 446,364 |
Lease liabilities | (38,924) | (6,108) | (28,623) | (23,536) |
Accrued liabilities and other current liabilities | 138,111 | 21,673 | 246,511 | 607,254 |
Income tax payable | (53,510) | (8,397) | 30,810 | 26,051 |
Net cash provided by operating activities | 327,453 | 51,384 | 1,239,874 | 1,945,414 |
Cash flows from investing activities | ||||
Placements of short-term deposits | (7,050,721) | (1,106,412) | (7,903,107) | (7,166,676) |
Maturities of short-term deposits | 4,595,849 | 721,189 | 8,387,957 | 5,553,758 |
Placements of short-term investments | (1,950,000) | (305,998) | (2,200,000) | (3,706,780) |
Maturities of short-term investments | 2,350,000 | 368,766 | 3,208,602 | 1,808,908 |
Purchase of property and equipment | (39,483) | (6,196) | (54,410) | (61,210) |
Purchase of intangible assets | (58,583) | (9,193) | (63,581) | (10,186) |
Prepayment for purchase of land use right | (310,220) | |||
Cash paid for long-term investments | (284,118) | (44,584) | (101,964) | (92,944) |
Cash received from an investee due to withdrawal of investment | 2,000 | |||
Cash received from an investee for its partial disposal of an investment | 38,532 | |||
Cash received from a disposal of an investment | 554,889 | 87,074 | 0 | |
Proceeds from disposal of property and equipment | 1,847 | 290 | 971 | 159 |
Loan to a third party | 0 | (10,000) | ||
Net cash (used in)/provided by investing activities | (1,880,320) | (295,064) | 1,004,780 | (3,684,971) |
Cash flows from financing activities | ||||
Net proceeds from issuance of ordinary shares upon follow-on public offering | 2,110,715 | |||
Proceeds from exercise of vested share options | 10,723 | 1,683 | 265,294 | 22,936 |
Net cash provided by financing activities | 10,723 | 1,683 | 265,294 | 2,133,651 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (1,542,144) | (241,997) | 2,509,948 | 394,094 |
Cash and cash equivalents and restricted cash at the beginning of the year | 3,458,462 | 542,708 | 1,114,585 | 709,019 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 69,864 | (10,962) | (166,071) | 11,472 |
Cash and cash equivalents and restricted cash at the end of the year | 1,846,454 | 289,749 | 3,458,462 | 1,114,585 |
Supplemental disclosure of cash flows information: | ||||
- Income tax paid | 96,096 | 15,080 | 185,888 | 84,898 |
- Acquisition of property and equipment in form of accounts payable and amounts due to a related party | ¥ 4,301 | $ 675 | ¥ 5,645 | 3,574 |
- Non-cash transaction for acquiring an equity investment | ¥ 1,500 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, a 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 for 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 majority of its revenue from sales of virtual items in live streaming platforms as well as other services, which substantially consist of sub-licensing, 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 Holdings Limited (the “Parent Company” or “Tencent”). Upon the closing of the shares transfer, Tencent’s voting power in Huya increased to more than (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. Upon the completion of the IPO, the Company’s (1) 17,647,058 outstanding Series A-1 A-2 B-2 In April 2019, the Company completed a follow-on (c) Principal subsidiaries and VIE As of December 31, 2021, the Company’s principal subsidiaries and VIE are as follows: Name Place of incorporation Date of incorporation % of direct or indirect economic ownership Principal activities Principal subsidiaries 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 services Hainan Huya Entertainment Information Technology Co., Ltd. (“Hainan Huya”) PRC December 4, 2019 100 % Cultural and Creative services VIE Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 100 % Internet value added services (d) Variable interest entities VIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders PRC laws and regulations impose restrictions on foreign ownership and investment in internet-based businesses such as distribution of online information, value-added telecommunications services. Huya is a Cayman Islands company and its PRC subsidiary is considered a foreign-invested enterprise. Huya believes the live streaming service offered through its platform constitutes a type of value-added telecommunication service where foreign ownership and investment are restricted; and therefore Huya should operate its platform through contractual arrangements with a variable interest entity and its shareholders to ensure compliance with the relevant PRC laws and regulations. Huya has entered into a series of contractual arrangements, through Huya Technology, with Guangzhou Huya and the shareholders of Guangzhou Huya to obtain effective control over Guangzhou Huya and its subsidiaries, through which Huya operates its live streaming business. Huya currently conducts its business through Guangzhou Huya and its subsidiaries based on these contractual arrangements, which allow Huya to: • exercise effective control over Guangzhou Huya and its subsidiaries; • receive substantially all of the economic benefits of Guangzhou Huya and its subsidiaries; and • have an exclusive option to purchase all or part of the equity interests in Guangzhou Huya when and to the extent permitted by PRC law. As a result of these contractual arrangements, Huya Technology is the primary beneficiary of Guangzhou Huya, and Huya treats Guangzhou Huya as the variable interest entity under U.S. GAAP. Huya has consolidated the financial results of Guangzhou Huya and its subsidiaries in Huya’s consolidated financial statements in accordance with U.S. GAAP. Refer to Note 2(b) to the consolidated financial statements for the principles of consolidation. As detailed in Note 1(a), Tencent became the controlling shareholder of Huya starting from April 3, 2020. Subsequently, the shareholders of Guangzhou Huya were changed from Guangzhou Huaduo Network Technology Co., Ltd. (“Guangzhou Huaduo”) and Guangzhou Qinlv Investment Consulting Co., Ltd. (“Guangzhou Qinlv”) to Linzhi Tencent Technology Co., Ltd. (“Linzhi Tencent”). Huya Technology, Guangzhou Huya and Linzhi Tencent, the new shareholder of Guangzhou Huya, entered into a series of contractual arrangements on 17 September 2020. Based on management’s assessment, there is no substantial change in the contractual arrangements and Huya Technology continues to be the primary beneficiary of Guangzhou Huya. (i) VIE agreements amongst Huya Technology, Guangzhou Huya, Guangzhou Huaduo and Guangzhou Qinlv The following is a summary of the contractual arrangements entered among Huya Technology, Guangzhou Huya and its shareholders. • Exclusive Business Cooperation Agreement Huya Technology and Guangzhou Huya entered into exclusive business cooperation agreements under which Guangzhou Huya engages Huya Technology as its exclusive provider of technology support, business support and consulting services. Guangzhou Huya shall pay to Huya Technology service fees, which is determined by Huya Technology at its sole discretion. Huya Technology shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising from the performance of the agreement. During the term of the agreement, Guangzhou Huya shall not accept any consultations and/or services provided by any third party and shall not cooperate with any third party for the provision of identical or similar services without prior consent of Huya Technology. The term of this agreement is ten years and will be extended for ten years automatically after expiration, unless otherwise agreed by both parties in a written agreement. Huya Technology is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huya. • Exclusive Purchase Option Agreement Under the exclusive purchase option agreement, the shareholders of Guangzhou Huya have granted Huya Technology or its designated representative(s) irrevocably an exclusive option to purchase, to the extent permitted under PRC law, all or part of their equity interests in Guangzhou Huya at the lowest price permitted by the laws of the PRC applicable at the time of exercise. Huya Technology or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Huya Technology’s prior written consent, the shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou Huya. The term of this agreement is ten years and may be extended for another ten years at Huya Technology’s sole discretion. Huya Technology is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huya. • Equity Pledge Agreement Pursuant to the equity pledge agreement, the shareholders of Guangzhou Huya have pledged all of their equity interests in Guangzhou Huya to Huya Technology to guarantee the performance by Guangzhou Huya and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive purchase option agreement, and powers of attorney. The shareholders shall not transfer or assign the equity interests, the rights and obligations in the equity pledge agreement or create or permit to create any pledges which may have an adverse effect on the rights or benefits of Huya Technology without Huya Technology’s written consent. If Guangzhou Huya and/or its shareholders breach their contractual obligations under those agreements, Huya Technology, as pledgee, will be entitled to sell the pledged equity interests. • Power of Attorney Pursuant to the irrevocable power of attorney, Huya Technology is authorized by each of the shareholders as its attorney-in-fact one (ii) VIE agreements amongst Huya Technology, Guangzhou Huya and Linzhi Tencent The following is a summary of the currently effective contractual arrangements by and among Huya Technology, Guangzhou Huya and Linzhi Tencent. • Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement, Huya Technology has the exclusive right to provide to Guangzhou Huya technology support, business support and consulting services related to Guangzhou Huya’s business, the scope of which is to be determined by Huya Technology from time to time. Huya Technology owns the exclusive intellectual property rights created as a result of the performance of this agreement. The timing and amount of the service fee payments shall be determined at the sole discretion of Huya Technology. The term of this agreement is ten years from the execution date of this agreement and will be automatically extended for another ten years, unless otherwise agreed upon by Huya Technology and Guangzhou Huya. • Exclusive Option Agreement Under the exclusive option agreement, Linzhi Tencent irrevocably granted Huya Technology or its designated representatives an exclusive option to purchase, to the extent permitted under PRC law, all or part of its equity interests in Guangzhou Huya. Huya Technology or its designated representatives have sole discretion as to when to exercise such options, either in part or in full. Without Huya Technology’s prior written consent, Linzhi Tencent shall not sell, transfer, mortgage or otherwise dispose of its equity interests in Guangzhou Huya. The term of this agreement is ten years and may be extended at Huya Technology’s sole discretion. • Equity Interest Pledge Agreement Pursuant to the equity interest pledge agreement, Linzhi Tencent, as the shareholder of Guangzhou Huya, pledged all of its equity interests in Guangzhou Huya to Huya Technology to guarantee the performance by Guangzhou Huya and Linzhi Tencent of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement and voting rights proxy agreement. If Guangzhou Huya or Linzhi Tencent breaches their respective contractual obligations under those agreements, Huya Technology, as the pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. This pledge will become effective on the date the pledged equity interests are registered with the competent administration for market regulation and will remain effective until the pledgor is no longer the shareholder of Guangzhou Huya. The pledged equity interests were registered with the competent administration for market regulation on September 21, 2020. • Shareholder Voting Rights Proxy Agreement Under the voting rights proxy agreement, Linzhi Tencent, as the shareholder of Guangzhou Huya, irrevocably executed a power of attorney and appointed Huya Technology as its attorney-in-fact one Risks in relation to the VIE structure The Business was primarily conducted through Guangzhou Huya, the VIE, controlled by the Wholly foreign-owned enterprise (“WFOE”) through contractual arrangements. In the opinion of management, the contractual arrangements with the VIE and the shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the shareholders of the VIE were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. In March 2019, the National People’s Congress enacted PRC Foreign Investment Law which would be effective starting from January 1, 2020. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all • revoke or refuse to grant or renew the Group’s business and operating licenses; • restrict or prohibit related party transactions between the wholly owned subsidiary of the Group and the VIE; • impose fines, confiscate income or other requirements which the Group may find difficult or impossible to comply with; • require the Group to alter, discontinue or restrict its operations; • restrict or prohibit the Group’s ability to finance its operations, and; • take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIE, which may result in deconsolidation of the VIE in the Group’s consolidated financial statements. In the opinion of management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group’s operations depend on the VIE to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIE or the shareholders of the VIE fail to perform their obligations under those arrangements. The following table sets forth the financial data for the VIEs on an aggregated basis. For purposes of this presentation, activity within and between the VIEs have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination. Presentation of the comparative data for 2019 and 2020 have been expanded to conform to the current year presentation. Selected Condensed Consolidated Balance Sheets Data for the VIEs As of December 31, 2020 2021 RMB RMB Assets Cash and cash equivalents 315,346 474,143 Restricted cash 136,989 45,412 Short-term deposits 100,000 — Accounts receivable, net 47,497 64,301 Prepayments and other current assets 78,910 216,740 Amounts due from related parties 59,284 129,364 Amounts due from Group companies (1) 1,472,386 1,379,170 Investments 231,311 449,684 Intangible assets, net 61,846 80,010 Right of use asset 826 1,701 Prepayments and other non-current assets 6,135 1,223 Other assets 71,995 13,035 Total assets 2,582,525 2,854,783 Deferred revenue and Advances from customers 651,636 563,259 Accrued liabilities and other current liabilities 492,164 500,530 Amount due to related parties 31,791 101,247 Other liabilities 59,320 12,355 Total liabilities 1,234,911 1,177,391 Total shareholders’ equity 1,347,614 1,677,392 These balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated. Selected Condensed Consolidated Statements of Operation Data for the VIEs For the year ended December 31, 2019 2020 2021 RMB RMB RMB Third-party revenues 8,293,317 10,738,074 10,897,479 Total cost and expenses (2) (7,954,302 ) (10,477,605 ) (10,789,307 ) Others, net 129,487 82,469 195,202 Income before income tax 468,502 342,938 303,374 Income tax expenses (71,401 ) (76,394 ) (50,374 ) Share of loss from equity method investments (2,775 ) (817 ) (37 ) Net income 394,326 265,727 252,963 Selected Condensed Consolidated Cash Flows Data for the VIEs For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net cash provided by operating activities (3) 1,667,634 230,204 1,176,397 Capital contributions and advances to Group companies (861,078 ) (1,300,825 ) (911,916 ) Other investing activities (1,023,878 ) 1,083,634 (197,261 ) Net cash used in investing activities (1,884,956 ) (217,191 ) (1,109,177 ) Other financing activities (519 ) — — Net cash used in financing activities (519 ) — — Note: (1) Inter-company service fees for technology support, business support and consulting fees (collectively defined as “VIE service fees”) are charged pursuant to the exclusive business cooperation agreement. As of December 31, 2019, 2020, and 2021, the outstanding balance of amounts due from Group companies were inter-company advances. There were no outstanding balances for VIE service fees charged to the VIEs. (2) For the years ended December 31, 2019, 2020 and 2021, VIE service fees were charged by WFOE and other subsidiaries to the VIEs amounting to RMB929.6 million, RMB7,543.2 million and RMB8,664.1 million. (3) For the years ended December 31, 2019, 2020 and 2021, cash paid by the VIEs to the WFOE and other subsidiaries for VIE service fees were RMB929.6 million, RMB7,543.2 million and RMB8,664.1 million. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies | 2. Principal accounting policies (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the 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 VIE and has been determined to be the primary beneficiary of the VIE. (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, 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 consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of multiple element revenue contracts, the valuation allowance for deferred tax assets and income tax, 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, and allowances for credit losses, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in 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 (loss) in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end (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$1.00 =RMB6.3726 on December 30, 2021 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. (g) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash is substantially cash balance on deposit required by its commercial banks, the court and government department. (h) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. (i) Short-term investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. ( j Receivables Before January 1, 2020, the Group determined the allowance for doubtful accounts based on an assessment of historical collection activity, the current business environment and forecasts that may affect the customers’ ability to pay. From January 1, 2020, the Group adopted ASU No. 2016-13, The Group’s accounts receivable and other receivables recorded in amount due from related parties, prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from third-party payment platforms and advertising customers. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical experience of loss severity and recoveries, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. Other key factors that influence the expected credit loss analysis include credit rating, 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. No significant impact of changes in the assumptions since adoption. ( k Investments Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. Equity Investments without Readily Determinable Fair Values The Group elected to record equity investments without readily determinable fair values, which are not accounted for using the equity method and do not qualify for the existing practical expedient in ASC 820 to estimate fair value using the net asset value per share (or its equivalent) of the investments and, at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying values of the equity investments in earnings. Changes in the carrying values of the equity investment are made whenever there are impairment or observable price changes in orderly transactions for the identical or similar investment of the same issuer that are known or that can reasonably be known to the Group based on reasonable effort. For equity investments without readily determinable fair value for which the Group has elected to apply the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying judgment in considering various factors and events including a) adverse performance of investees; b) adverse industry developments affecting investees; and c) adverse regulatory social, economic or other developments affecting investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in earnings equal to the difference between the carrying value and fair value. Available-for-sale Debt Investments The Group has classified its investment in debt securities, other than those the held to maturity debt securities, as available-for-sale securities. The Group recorded available-for-sale debt investments at estimated fair values with the aggregate unrealized gains and losses, net of tax, being reflected in “accumulated other comprehensive income (loss)” in the consolidated balance sheets. If the amortized cost basis of an available-for-sale investment exceeds its fair value and if the Group has the intention to sell the investment or it is more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis, an impairment is recognized in the consolidated statements of comprehensive income. If the Group does not have the intention to sell the investment and it is not more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis and the Group determines that the decline in fair value below the amortized cost basis of an available-for-sale investment is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance for credit losses along with the operating expense in the consolidated statements of comprehensive income. The allowance is measured as the amount by which the debt investment’s amortized cost basis exceeds the Group’s best estimate of the present value of cash flows expected to be collected. The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. (l) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Property and equipment mainly consist of servers, computers and equipment, leasehold improvements and others. Estimated useful lives Residual rate Servers, computers and equipment 3 0% Leasehold improvements Shorter of lease term or the estimated useful lives of the assets 0% Others 3-5 0%-5% Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of comprehensive income. ( m Intangible assets Intangible assets mainly consist of copyrights of video content, license, software, domain names and trademark. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Copyrights of video content 1 – 4 years License 15 years Software 1 – 10 years Domain names 15 years Trademarks 5 years ( n Impairment of long-lived assets For long-lived assets other than investments whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset grouping may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the asset grouping. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2019, 2020 and 2021. (o) Revenue On January 1, 2018, the Group adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Based on the Company’s assessment, the adoption of ASC 606 did not have any material impact to the Group’s consolidated financial statements and there were no material differences between the Company’s adoption of ASC 606 and its historic accounting under ASC 605. Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The following table disaggregates the Group’s revenue by major type for the years ended December 31, 2019, 2020 and 2021: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Live streaming 7,976,214 10,311,624 10,186,204 Other revenues (i) 398,287 602,750 1,165,242 Total 8,374,501 10,914,374 11,351,446 (i) Other revenues mainly include advertising, sub-licensing and online games revenues. 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 primarily from sales of virtual items in the platforms. The Group has a recharge system for users to purchase the Group’s virtual currency, which can then be utilised to purchase virtual items for use on the live streaming platforms. Users can recharge via various online 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 in the revenue generating arrangement and 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/payable 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 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. For 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’s 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 is 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. As the Group’s live streaming virtual items are generally sold without right of return and the Group does not provide any other credit and incentive to its users, therefore accounting of variable consideration when estimating the amount of revenue to recognize is not applicable to the Group’s live streaming business. (ii) Sub-licensing The Group generates licensing revenue primarily from sub-licensing e-sports Revenues from barter transactions were recognized during the year ended December 31, 2021, in which the e-sports contents are sub-licensed to other live streaming platforms. Barter transactions in which e-sports contents are received in exchange for other e-sports contents are recorded based on the fair values of the e-sports contents received under ASC 606. (iii) 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. The Group provides sales incentives to certain customers in the forms of discounts and rebates based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. The Group believes that there will not be significant changes to its estimates of variable consideration. (iv) Online games 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 users to purchase game tokens for use. Game users can recharge via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Game tokens is non-refundable Majority of online games revenues were derived from the Group’s self-developed games for the years 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, advertising customers, distribution platforms and livestreaming platforms. Prior to January 1, 2020, The Group records the allowance for specifically identified non-recoverable Contract liabilities primarily consist 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. During the years ended December 31, 2019, 2020 and 2021, the Group recognized revenue amounting to RMB483,781, RMB845,966 and RMB485,878, respectively, that had been was included in the corresponding contract liability balance at the beginning of the years. As of December 31, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligation was 2022 2023 and after Total RMB RMB RMB Revenue expected to be recognized 459,509 118,975 578,484 (p) Cost of revenues Amounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of (i) revenue sharing fees to broadcasters and content costs, including payments to e-sports content providers and other various content providers, (ii) bandwidth costs, (iii) salaries and welfare, (iv) payment handling costs, (v) share-based compensation, (vi) depreciation and amortization expense for servers and other equipment, and intangibles directly related to operating the platform, (vii) other taxes and surcharges, and (viii) other costs. (q) Research and development expenses Research and development expenses primarily consist of (i) salaries and welfare for research and development personnel, and (ii) share-based compensation for research and development personnel. Costs incurred during the research stage are expensed as incurred. Costs incurred in the development stage, prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The Company recognizes software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. The Company ha d (r) Sales and marketing expenses Sales and marketing expenses primarily consist of (i) advertising and market promotion expenses, (ii) salaries and welfare for sales and marketing personnel, and (iii) share-based compensation for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB353,829, RMB449,042 and RMB655,957 for the years ended December 31, 2019, 2020 and 2021, respectively. (s) General and administrative expenses General and administrative expenses primarily consist of (i) salaries and welfare for management and administrative personnel, and (ii) share-based compensation for management and administrative personnel. (t) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the accompanying statement of comprehensive income amounted to RMB128,256, RMB116,292 and RMB187,200 for the years ended December 31, 2019, 2020 and 2021, respectively. (u) Share-based compensation Share-based compensation expense arises from share-based awards, including 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 Huya Share-based Awards Huya’s share options Prior to the IPO date (Note 1(b)), in determining the fair value of share options granted, the binomial option-pricing model was applied. The determination of the fair value was affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends. Following the listing of the Company, the grant date fair value of share options began to be determined based on the stock price of the Company’s ordinary shares listed on the 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 expecte |
Certain Risks
Certain Risks | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Certain Risks | 3. Certain risks (a) Foreign exchange risk The revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. (b) Credit risk The Group’s financial instruments potentially subject to significant concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term deposits, short-term investment and accounts receivable. As of December 31, 2020 and 2021, substantially all of the Group’s cash and cash equivalents, restricted cash, short-term deposits and short-term investment were placed with the PRC financial institutions and international financial institutions. Management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. Nevertheless under the PRC law, it is required that a commercial bank in the PRC that holds third party cash deposits should maintain a certain percentage of total customer deposits taken in a statutory reserve fund for protecting the depositors’ rights over their interests in deposited money. PRC banks are subject to a series of risk control regulatory standards; PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Group believes that it is not exposed to unusual risks as these financial institutions are either PRC banks or international banks with high credit quality. The Group had not experienced any losses on its deposits of cash and cash equivalents and term deposits for the years ended December 31, 2019, 2020 and 2021 and believes that its credit risk to be minimal. Accounts receivable is typically unsecured and is primarily derived from revenue earned from third-party payment platforms, advertising services, third-party distribution platforms and third-party livestreaming platforms. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 4. 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, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 Amount RMB equivalent Amount RMB equivalent RMB 989,824 989,824 1,341,236 1,341,236 US$ 344,450 2,247,500 66,204 422,096 SGD 11,131 54,892 5,642 26,617 Others N/A 1,357 N/A 835 Total 3,293,573 1,790,784 (i) As of December 31, 2020 and 2021, the other currencies consist of Hong Kong Dollar, Brazilian Real and Thai Baht. |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Cash and Cash Equivalents, Current [Abstract] | |
Restricted cash | 5. Restricted cash The Group’s restricted cash represents substantially cash balances on deposit required by its commercial banks, the court and the government. As of December 31, 2020 and 2021, the Group’s restricted cash balances were As of December 31, 2021, among the Group’s restricted cash, R had been restricted by the government as part of their ongoing investigations on certain third parties’ activities. The restrictions will be subsequently removed when the investigations are closed. |
Short-Term Deposits
Short-Term Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Short-Term Deposits | 6. Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities more than three months but less than one year. Short-term deposits balance as of December 31, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 Amount RMB equivalent Amount RMB equivalent RMB 1,800,000 1,800,000 2,460,000 2,460,000 US$ 639,824 4,174,790 924,125 5,891,945 Total 5,974,790 8,351,945 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Investments [Abstract] | |
Short-Term Investments | 7. Short-term investments The Group’s short-term investments in financial instruments were RMB1,206,539 and RMB816,331 as of December 31, 2020 and 2021, respectively, and are placed in reputable financial institutions in PRC. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 8. Accounts receivable, net December 31, 2020 2021 RMB RMB Accounts receivable, gross 75,686 90,330 Less: expected credit loss provision (4,449 ) (2,296 ) Accounts receivable, net 71,237 88,034 The Group recorded a provision for current expected credit loss. The following table sets out movements of the expected credit loss provision for the years ended December 31, 2019, 2020 and 2021: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance prior to ASC 326 — (922 ) — Impact of adoption to ASC326 — (3,122 ) — Balance at beginning of the year (922 ) (4,044 ) (4,449 ) Current year provision — (1,907 ) (715 ) Current year reversal — 1,502 2,868 Balance at end of the year (922 ) (4,449 ) (2,296 ) |
Prepayments and Other Current A
Prepayments and Other Current Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Current Assets, Net [Abstract] | |
Prepayments and Other Current Assets, Net | 9. Prepayments and other current assets, net December 31, 2020 2021 RMB RMB Prepayments to vendors and content providers 203,972 196,466 Input value-added tax to be deducted 82,966 184,061 Interests receivable 103,531 129,989 Prepayment of income tax 58,601 78,101 Receivables from the exercise of vested share options and individual income tax paid on behalf of employees related to share-based awards 13,285 45,217 Loan to a third party 11,350 12,850 Prepayments to third-party payment platform 6,093 8,710 Others 15,634 9,574 Less: expected credit loss provision (324 ) (23 ) Total 495,108 664,945 The following table presents the activity in the expected credit loss provision related to other receivables for the year s 2019, For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance prior to ASC 326 — — — Impact of adoption to ASC326 — (308 ) — Balance at beginning of the year — (308 ) (324 ) Current year provision — (155 ) — Current year reversal — 139 301 Balance at end of the year — (324 ) (23 ) |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 10. Investments December 31, 2020 2021 RMB RMB Equity investments without readily determinable fair values (i) 279,818 450,937 Debt investments (ii) — 157,160 Equity method investments (iii) 187,388 520 467,206 608,617 (i) Equity investments without readily determinable fair values include investment in equity securities of private investee companies over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock. In 2020 and 2021, the Group acquired equity interests in a number of privately-held investee companies at with a total consideration of RM The Group elected to apply the measurement alternative to account for these investments (see Note 2(k)). (ii) In 2021, the Group made an investment in debt securities (i.e. certain preferred shares) of a privately-held investee company at a cash consideration of RM (“Debt Investment”). Given that the preferred stock will become redeemable simply by the the passage of time and the intention of the Group is to hold and consider a future disposal, the investment is accounted for as an available-for-sale debt investment (see Note 2(k)), wherein the investment is carried at fair value with realized or unrealized gains or losses recorded in accumulative other comprehensive income (loss). As of December 31, 2021, the fair value of the Debt Investment is not materially different from the fair value at the acquisition date. (iii) In 2018, the Group invested as one of the limited partners with significant influence in an investment fund (the “Fund”) which owns an equity interest in an online game company, which was accounted for as an equity investment. For the year ended December 31, 2021, the Group disposed of its interest (through sales to two separate parties) in the Fund with a disposal gain of R The t otal cash con sideration was RMB554,889 , of wh ich RMB529,070 was related to a tra nsaction under taken with an entity owned by Tencent. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 11. Property and equipment, net Property and equipment consist of the following: December 31, 2020 2021 RMB RMB Gross carrying amount Servers, computers and equipment 186,874 204,082 Leasehold improvements 34,244 34,653 Others 11,002 19,211 Total 232,120 257,946 Less: accumulated depreciation (137,565 ) (178,335 ) Property and equipment, net 94,555 79,611 Depreciation expense for the years ended December 31, 2019, 2020 and 2021 were RMB45,455, RMB58,440 and RMB49,875, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | 12. Intangible assets, net The following table summarizes the Group’s intangible assets: December 31, 2020 2021 RMB RMB Gross carrying amount Copyrights of video content s 83,865 133,865 License 32,000 32,000 Software 11,142 21,498 Domain names 5,283 5,283 Trademark s 1,132 1,132 Total 133,422 193,778 Less: accumulated amortization Copyrights of video content s (53,262 ) (82,312 ) License (5,689 ) (7,822 ) Software (8,728 ) (16,125 ) Domain names (2,022 ) (2,445 ) Trademark s (925 ) (1,132 ) Total accumulated amortization (70,626 ) (109,836 ) Intangible assets, net 62,796 83,942 Amortization expense for the years ended December 31, 2019, 2020 and 2021 were RMB17,080, RMB44,362 and RMB39,239, respectively. As of December 31, 2021, intangible assets amortization expense for future years is expected to be as follows: Year end ed Amortization expense of intangible assets RMB 2022 32,042 2023 22,710 2024 7,943 2025 2,768 2026 2,734 The weighted average amortization periods of intangible assets as of December 31, 2020 and 2021 are as below: December 31, 2020 2021 Copyrights of video content s 2 years 3 years License 15 years 15 years Software 2 years 4 years Domain names 15 years 15 years Trademark s 5 years 5 years |
Prepayments and Other Non-Curre
Prepayments and Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Non-Current Assets [Abstract] | |
Prepayments and Other Non-Current Assets | 13. Prepayments and other non-current December 31, 2020 2021 RMB RMB Prepayments to vendors and content providers 58,706 139,968 Refundable lease deposits 8,173 8,519 Prepayments for purchase of land use right (i) 310,220 — Others 2,362 2,400 Total 379,461 150,887 (i) In November 2020, the Company had entered into an agreement for the acquisition of land use rights for its operations and the prepayment was amounted to RM as of December 31, 2020. In July 2021, the Company obtained the effective land use certificate and accordingly recognized the prepayment of the land use right as right of use asset. |
Advances from customers and def
Advances from customers and deferred revenue | 12 Months Ended |
Dec. 31, 2021 | |
Advances From Customers And Deferred Revenue [Abstract] | |
Advances from customers and deferred revenue | 14. Advances from customers and deferred revenue December 31, 2020 2021 RMB RMB Deferred revenue, current 399,053 438,309 Advances from customers 86,825 21,200 Total current advances from customers and deferred revenue 485,878 459,509 Deferred revenue, non-current 178,144 118,975 Total non-current 178,144 118,975 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Current Liabilities [Abstract] | |
Accrued Liabilities and Other Current Liabilities | 15. Accrued liabilities and other current liabilities December 31, 2020 2021 RMB RMB Revenue sharing fees 990,867 1,051,354 Salaries and welfare 263,310 231,465 Marketing and promotion expenses 152,010 175,357 Bandwidth costs 86,967 136,444 Other taxes payable 43,158 59,054 License fees 40,749 52,624 Deposits from content providers, suppliers and advertising customers 50,909 41,941 Others 79,319 97,213 Total 1,707,289 1,845,452 |
Cost of Revenues
Cost of Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Cost of Revenues [Abstract] | |
Cost of Revenues | 16. Cost of revenues For the year ended December 31, 2019 2020 2021 RMB RMB RMB Revenue sharing fees and content costs 5,552,712 7,086,832 8,374,555 Bandwidth costs 800,827 879,172 713,672 Salaries and welfare 255,258 306,805 322,604 Payment handling costs 120,429 154,538 151,913 Share-based compensation 31,593 64,942 56,629 Others 131,760 154,019 131,787 Total 6,892,579 8,646,308 9,751,160 |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income | 17. Other income Other income is primarily comprised of gains recognized for government grants which represent cash subsidies received from the PRC government. For the years ended December 31, 2020 and 2021, the Company recognized government grants as other income amounting to R MB173,382 and RMB191,723. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxation | 18. 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 i s 6% for the years ended December 31, 2019, 2020 and 2021. All entities in PRC are also subject to surcharges on value-added tax payments in accordance with PRC law. (b) Income taxes (i) Cayman Islands Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) Hong Kong Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. The payments of dividends by these companies to their shareholders are not subject to any withholding tax in Hong Kong. Commencing from the year of assessment of 2019, 2020 and 2021, the first HK$2 million of profits earned by the Company’s subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e. 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate. (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 Group’s PRC entities are subject to a uniform income tax rate of 25% for years 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 years, commencing from the first profit making year. An entity that qualifies as a “Key National Software Enterprise” (a “KNSE”) is entitled to a further reduced preferential income tax rate of 10%. Entities must perform a self-assessment each year to ensure they meet the criteria for qualification, pursuant to SAT Public Notice [2018] No.23 (“Circular 23”). If a 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 (“FTP”) 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 [ ] ve VIE operations 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% preferential tax rate starting from 2019. In 2019, Huya Technology qualified as a KNSE and applied the income tax rate of 10% for 2019 pursuant to SAT Public Notice [2018] No.23 (“Circular 23”). • The qualification as a KNSE is subject to annual evaluation and approval by the relevant authorities in China and we will only recognize the preferential tax treatment of KNSE status when approval from the relevant authorities is obtained, usually one year in arrears. In 2021, the NDRC, together with several other authorities, jointly published the Circular on the Requirements for the Formulation of the List of Integrated Circuit Enterprises or Project and Software Enterprises Enjoying Tax Preferences, which provides higher requirements on KNSE than before. Huya Technology was not able to maintain its KNSE qualification for the year of 2020 due to the changes in the relevant policies and was notified that it’s not qualified as a KNSE in May, 2021. The impact resulting from not being qualified as a KNSE is not material for the year of 2020. • Furthermore, Huya Technology is still qualified as a Software Enterprise and enjoyed 12.5% preferential tax rate in 2021. • Guangzhou Huya applied for the HNTE qualification and obtained approval in November 2018 and it is entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2018. In 2021, Guangzhou Huya obtained renewal for HNTE qualification for next three years and should apply for HNTE qualification in 2024. • Hainan Hu ya • Most of the remaining PRC subsidiaries and VIEs were subject to 25% EIT for the years reported. According to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”), the additional tax deduction amount for qualified research and development expenses was increased f rom 50% to 75%, effective from 2018. 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 re-invested Aggregate undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2020 and 2021 are approximately RMB 2,609,612 and RMB 3,214,868, respectively. 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 ha d Composition of income tax expenses Income before income tax expenses for the years ended December 31, 2019, 2020 and 2021 were taxed within the following jurisdictions: For the year ended December 31, 2019 2020 2021 RMB RMB RMB PRC entities 796,062 994,163 360,160 Non-PRC (229,036 ) 38,365 (100,641 ) Total 567,026 1,032,528 259,519 The current and deferred portion of income tax (benefits) expenses included in the consolidated statements of comprehensive income for the years ended December 31, 2019, 2020 and 2021 are as follows: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Income tax Current income tax expenses 110,408 142,710 16,046 Deferred income tax (benefits) expenses (14,871 ) 18,818 28,119 Subtotal income tax expenses 95,537 161,528 44,165 Income tax expenses applicable to Non-PRC Current income tax expenses 541 15,466 7,056 Deferred income tax (benefits) expenses — (210 ) 4,006 Subtotal income tax Non-PRC 541 15,256 11,062 Total income tax expenses 96,078 176,784 55,227 Reconciliation of the differences between statutory tax rate and the effective tax rate The reconciliation between the statutory income tax rate and the effective tax rate is as follows: For the year ended December 31, 2019 2020 2021 PRC Statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of tax holiday and preferential tax benefit s (18.9 )% (12.3 )% (15.6 ) Effect of varying tax rates available in different jurisdictions (i) (3.3 )% (1.6 )% (0.7 ) Permanent differences (ii) 6.7 % 6.1 % 19.0 % Change in valuation allowance 15.8 % 4.8 % 10.7 % Effect of Super Deduction available to the Group (8.3 )% (4.9 )% (17.1 ) Effective income tax rate 17.0 % 17.1 % 21.3 % Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) (0.42 ) (0.56 ) (0.11 ) (i) For the years ended December 31, 2019, 2020 and 2021, the effect of varying tax rates in different jurisdictions is mainly driven by the interest income derived from short-term under the tax laws of Cayman Islands, partially offset by the losses arising from overseas business which is subject to an income tax rate o f 17 % under the ta x laws of Singapore. (ii) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. Deferred tax assets and liabilities Deferred taxes are measured using the enacted tax rates for the years in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2020 and 2021 are as follows: December 31, 2020 2021 RMB RMB Deferred tax assets Tax loss carried forward 142,408 181,860 Unrealized profit s 45,354 5,420 Deferred revenue 2,898 2,435 Others 1,084 1,766 191,744 191,481 Less: Valuation allowance (i) (143,431 ) (171,236 ) Total deferred tax assets 48,313 20,245 Deferred tax liabilities Unrealized gains on investments 13,350 4,597 Total deferred tax liabilities 13,350 4,597 Net deferred tax assets 34,963 15,648 (i) Valuation allowance is provided against deferred tax assets wh e Movement of valuation allowance For the year ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the year 21,899 94,637 143,431 Additions 89,002 61,069 42,252 Reversals/write-off (16,264 ) (12,275 ) (14,447 ) Balance at end of the year 94,637 143,431 171,236 Tax loss carry forwards As of December 31, 2021, total tax losses carried forward of the Company’s subsidiaries and VIEs in the PRC amounted to RMB216,634, which were expected to expire if not u tili 2022 2026 The accumulated tax losses of subsidiaries incorporated in Singapore of RMB804,853, subject to the agreement of the relevant tax authorities, is allowed to be carried forward to offset against future taxable profits. Such carried forward tax losses in Singapore have no time limit. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities’ tax filings from 2017 through 2021 remain open to examination by the respective tax authorities. Uncertain tax positions The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2020 and 2021, the Group did not have any significant unrecognized uncertain tax positions. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Banks [Abstract] | |
Ordinary Shares | 19. Ordinary shares Upon the follow-on public offering in , the Company issued Class A ordinary shares. During the year ended December 31, 2019, 2,061,577 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, 6,800,000 Class B ordinary shares were converted to Class A ordinary shares. As of December 31, 2019, 67,101,314 Class A ordinary shares and 152,357,321 Class B ordinary shares had been issued and outstanding, respectively. During the year ended December 31, 2020, 16,389,527 Class A ordinary shares were issued for the exercised share options and vested restricted share units. As of December 31, 2020, 83,490,841 Class A ordinary shares and 152,357,321 Class B ordinary shares had been issued and outstanding, respectively. During the year ended December 31, 2021, 2,222,119 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, 1,280,804 Class B ordinary shares were converted to Class A ordinary shares. As of December 31, 2021, 86,993,764 Class A ordinary shares and 151,076,517 Class B ordinary shares had been issued and outstanding, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 20. Share-based compensation Compensation expense recognized for share-based awards granted by Huya and JOYY was as follows: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Share-based compensation expenses - Related to Huya Share-based Awards 279,748 408,208 289,705 - Related to JOYY’s Share-based Awards 1,996 — — Total 281,744 408,208 289,705 There was no capitalized share-based compensation expense for the years presented. (a) Huya Share-based Awards Huya 2017 Share Incentive Plan On July 10, 2017, the Board of Directors of the Company approved the establishment of the Huya 2017 Share Incentive Plan for the purpose of providing incentives for employees contributing to the Group. The plan shall be valid and effective fo years from the establishment date. The maximum number of shares that may be issued pursuant to all awards under the plan shall be 17,647,058 shares. On March 31, 2018, the Board of Directors approved to increase the maximum number of shares, that may be issued, fro Huya 2021 Share Incentive Plan On June 10, 2021, the Board of Directors of the Company approved the establishment of the Huya 2021 Share Incentive Plan for the purpose of providing incentives for employees with outstanding performance to generate superior returns to the Group. The plan shall be valid and effective fo years from the establishment date. The maximum number of shares that may be issued pursuant to all awards under the plan shall b shares, which shall be solely in the form of restricted share units. (i) Options Grant of options During the years ended December 31, 2019, 2020 and 2021, no share option had been granted to employees or non-employees. Vesting of options There are mainly 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 Huya 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 options Weighted average exercise price (US$) Weighted average remaining contractual life (years) Aggregate (US$) As of December 31, 2018 17,520,555 2.5210 8.82 227,049 Forfeited (257,750 ) 2.5500 Exercised (2,011,144 ) 2.3290 As of December 31, 2019 15,251,661 2.5458 7.84 234,939 Forfeited (18,000 ) 2.5500 Exercised (14,440,921 ) 2.5456 As of December 31, 2020 792,740 2.5500 6.61 13,778 Forfeited — — Exercised (533,425 ) 2.5500 As of December 31, 2021 259,315 2.5500 5.60 1,138 Expected to vest at December 31, 2021 — — — — Exercisable as of December 31, 2021 259,315 2.5500 5.60 1,138 Prior to the completion of the IPO, the Company has used the binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions used were as follows: 2018 Weighted average fair value per option granted US$ 5.2130 Weighted average exercise price US$ 2.47 Risk-free interest rate (1) 2.83 % Expected term (in year) (2) 10 Expected volatility (3) 55 % Dividend yield (4) — (1) The risk-free interest (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The Company has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. For the years ended December 31, 2019, 2020 and 2021, the Group recorded share-based compensation in general and administrative expenses of RMB6,746, RMB191 and nil for the share options granted to non-employees. For the years ended December 31, 2019, 2020 and 2021, the Group recorded share-based compensation of RMB102,970, RMB75,699 and nil, using the graded-vesting attribution method, including accelerated compensation cost amounted to RMB1,869 due to that 262,503 share options were canceled during the year ended December 31, 2018 without concurrent grant of replacement awards, which is treated as a settlement for no consideration at the time of cancelation under ASC 718. As of December 31, 2021, there was no unrecognized share-based compensation expense of options relating to Huya 2017 Share Incentive Plan. (ii) Restricted share units Grant of restricted share units During the year ended December 31, 2019, 2020 and 2021, the Company grante , and 3,550,617 restricted share units to employees respectively. During the years ended December 31, 2019, 2020 and 2021, no restricted share units had been granted to non-employees. Vesting of restricted share units There are mainly three types of vesting schedule for employees, which are: i) 50% of the restricted share units 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) restricted share units will be vested in four equal installments over the following 48 months, and iii) restricted share units will be vested in two equal installments over the following 24 months. The following table summarizes the activity of all restricted share units for the years ended December 31, 2019, 2020 and 2021: Number of restricted share units Weighted average grant-date fair value (US$) Outstanding, December 31, 2018 4,107,185 9.0331 Granted 2,908,370 22.7642 Forfeited (270,707 ) 14.8129 Vested (465,000 ) 7.1600 Outstanding, December 31, 2019 6,279,848 15.4350 Granted 3,144,152 18.6180 Forfeited (603,929 ) 17.9943 Vested (2,175,765 ) 13.6528 Outstanding, December 31, 2020 6,644,306 17.1506 Granted 3,550,617 13.9339 Forfeited (806,435 ) 17.9309 Vested (2,547,290 ) 16.6645 Outstanding, December 31, 2021 6,841,198 15.5702 Expected to vest at December 31, 2021 6,281,465 15.6133 For the years ended December 31, 2019, 2020 and 2021, the Company recorded share-based compensation of RMB176,778, RMB332,509 and RMB289,705 using the graded vesting attribution method. As of December , , total unrecognized compensation expense relating to the restricted share units was RMB . The expense is expected to be recognized over a weighted average period of year using the graded-vesting attribution method. (b) 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. For the years ended December 31, 2019, 2020 and 2021, share-based compensation expense of RMB1,996, nil and nil, respectively, was recognized in the Group’s consolidated statements of comprehensive income. As of December 31, 2021, there was no unrecognized compensation expense since all the restricted share units ha d |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 21. Net income per share Basic and diluted net income per share for the year ended December 31, 2019, 2020 and 2021 are calculated as follow: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net income 468,173 884,158 583,499 Numerator for basic and diluted net income per share 468,173 884,158 583,499 Denominator: Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding 214,811,862 227,081,238 238,198,117 —Diluted effect of share option s 14,060,031 8,076,339 497,861 —Diluted effect of restricted share units 3,153,068 3,474,036 3,094,467 Denominator for diluted calculation 232,024,961 238,631,613 241,790,445 Net income per ordinary share —Basic 2.18 3.89 2.45 —Diluted 2.02 3.71 2.41 Net income per ADS* —Basic 2.18 3.89 2.45 —Diluted 2.02 3.71 2.41 * Each ADS represents one Class A ordinary share. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 22. Related party transactions For the years ended December 31, 2019, 2020 and 2021, significant related party transactions were as follows: Transactions with Tencent On February 5, 2018, Tencent and the Company, through their respective PRC affiliated entities, entered into a business cooperation agreement, which became effective on March 8, 2018. Pursuant to the agreement, both parties agreed to establish a strategic cooperation relationship in various areas, including game publishing and operation, live game streaming contents provision and broadcaster management. This agreement has a term of three years, which will be automatically renewed of another three year until terminated. Upon the completion of the issuance of Series B-2 For the year ended December 31, 2019 2020 2021 RMB RMB RMB Content costs charged by Tencent (i) 123,204 127,224 485,988 Operation support services provided by Tencent 219,403 342,487 370,393 Disposal gain of an investment (Note 10) — — 360,589 Sub-licensing and other revenues from Tencent 8,028 14,349 80,302 Others 31,739 30,540 14,617 (i) In April 2021, the Company entered into a related party transaction with a fellow subsidiary of Tencent to purchase an exclusive license for broadcasting League of Legends matches during the period from 2021 to 2025, with a total consideration of RMB2,013 million. Transactions with JOYY For the year ended December 31, 2019 2020 2021 RMB RMB RMB Operation support services provided by JOYY 17,455 4,187 2,543 Purchase of services by JOYY on behalf of Huya 22,622 18,945 268 Cash collected by JOYY as a payment platform for Huya 1,362,489 — — Repayment from JOYY in relation to the payment on behalf of Huya’s employees 15,306 — — Others 12,637 1,054 — Transactions with entities over which Tencent and/or Huya have significant influence (“Tencent and Huya’s related parties”) As detailed in Note 1(a), Tencent’s voting power in Huya has been ov er since April 3, 2020. The entities over which Tencent has significant influence (“Tencent’s related parties”) also became related parties of the Company. The transactions with Tencent’s related parties prior to For the year ended December 31, 2019 2020 2021 RMB RMB RMB Sub-licensing and other revenues from Tencent and Huya’s related parties — 8,197 188,209 Content costs and revenue sharing fees charged by Tencent and Huya’s related parties — 85,361 102,311 Others — 34,044 21,013 As of December 31, 2020 and 2021, the amounts due from/to related parties are as follows: December 31, 2020 2021 RMB RMB Amounts due from related parties Tencent 59,832 108,686 JOYY 4,913 27,817 Others 356 12,450 Less: expected credit loss provision (299 ) (393 ) Total 64,802 148,560 Amounts due to related parties Tencent 85,304 177,452 Others 10,153 38,676 Total 95,457 216,128 The following table presents the activity in the expected credit loss provision related to a s For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance prior to ASC 326 — — — Impact of adoption to ASC326 — (203 ) — Balance at beginning of the year — (203 ) (299 ) Current year provision — (180 ) (387 ) Current year reversal — 84 293 Balance at end of the year — (299 ) (393 ) The other receivables/payables from/to related parties are unsecured, interest-free and payable on demand. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 23. 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 sets forth the financial instruments measured or disclosed at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2020 and 2021: As of December 31, 2020 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Cash equivalents (i) 401,269 — — 401,269 Short-term investments (ii) — 1,206,539 — 1,206,539 As of December 31, 2021 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Cash equivalents (i) 401,291 — — 401,291 Short-term investments (ii) — 816,331 — 816,331 Available-for-sale debt investments (iii) — — 157,160 157,160 (i) Cash equivalents mainly consist of time deposits with original maturities of three months or less and highly liquid investments that are readily convertible to known amounts of cash. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Company classifies the valuation techniques that use the pervasive interest rates input as Level 1 of fair value measurements. (ii) 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 values are 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. (iii) Available-for-sale debt investments were investments made by the Group without readily determinable fair values as set out in Note 10, which were categorized as Level 3 in the fair value hierarchy. These investments were valued based on a model utilizing unobservable inputs requiring significant management judgment and estimation. The Company uses a combination of valuation methodologies, including income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees, future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies. Management determined the fair value of Level 3 investments based on income approach using various unobservable inputs. The determination of the fair value required significant judgement by management with respect to the assumptions and estimates for risk-free rate, weighted average cost of capital and probability in equity allocation. Fair value measurement on a non-recurring basis The Group measures investments without readily determinable fair value on a nonrecurring basis when impairment charges and fair value change due to observable price change are recognized. These nonrecurring fair value measurements use significant unobservable inputs (Level 3). An observable price change is usually resulting from new rounds of financing of the investees. The Group determines whether the securities offered in new rounds of financing are similar to the equity securities held by the Group by comparing the rights and obligations of the securities. When the securities offered in new rounds of financing are determined to be similar to the securities held by the Group, the Group adjusts the observable price of the similar security to determine the amount that should be recorded as an adjustment in the carrying value of the security to reflect the current fair value of the security held by the Group by using the back-solve method based on the equity allocation model with adoption of some key parameters such as risk-free rate and equity volatility or market approach by using the selection of comparable companies operating in similar businesses and etc. For the years ended December 31, 2019, 2020 and 2021, gain on fair value changes of investment of nil, RMB2,160 and RMB44,161 were recognized due to the observable price change of the investment without readily determinable fair value. The Group assesses the existence of indicators for other-than-temporary impairment of the investments by considering factors including, but not limited to, current economic and market conditions, the operating performance of the entities including current earnings trends and other entity-specific information. Apart from the short-term investments, equity investment measured at fair value through earnings and derivatives, the Group’s other financial instruments principally consist of cash and cash equivalents, short-term deposits, accounts receivable, other receivables, amounts due to/from related parties, accounts payable, certain accrued expenses. These financial instruments are recorded at cost which approximates fair value. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 24. Leases The Company entered into operating lease agreements primarily for offices and land. The following table summarizes the lease expense for the year s For the year ended December 31, 2019 2020 2021 RMB RMB RMB Operating lease expense 30,540 32,781 40,001 Short-term lease expense 19,149 17,113 16,438 Total lease expense 49,689 49,894 56,439 Weighted-average remaining lease term (in years) – operating leases 2.6 Weighted-average discount rate – operating leases 4.8 % As of December 31, 2021, future minimum lease payments under non-cancellable right-of-use For the year ending December 31, Future minimum payments RMB 2022 37,485 2023 34,510 2024 10,100 2025 4,593 2026 and thereafter — Total undiscounted cash flows 86,688 Less: imputed interest (5,131 ) Total 81,557 Supplemental cash flow information related t o For the year end December 31, 2019 2020 2021 RMB RMB RMB Cash paid for operating leases 28,847 33,028 43,024 Lease liabilities arising from obtaining right-of-use 33,399 21,024 26,077 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 25. Commitments and contingencies (a) Operating commitments As of December 31, 2021, future minimum payments under non-cancelable Operating RMB 2022 8,033 2023 4,999 2024 1,127 2025 and thereafter 225 14,384 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) Purchase obligations In 2021, the Group signed a contract to purchase an exclusive license for broadcasting League of Legends matches from a fellow subsidiary of Tencent during the period from 2021 to 2025 at an aggregate purchase price of RMB2,013 million. The unpaid purchase price was RMB1,640 million as of December 31, 2021. (c) Capital and other commitments As of December 31, 2021, capital expenditures contracted for are analyzed as follows: Capital RMB Construction in progress 59,612 Investments 30,000 89,612 (d) Legal proceedings As of December 31, 2021, the Group involved in a few cases related to unfair competition in live streaming broadcasters recruitment. These cases were pending in various courts. As of the date of issuance of the financial statements, these remaining lawsuits were still pending and the Group was not able to make a reliable estimate of the potential loss, if any. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent events During the year ended December 31, 2021, the Group acquired certain preferred shares of an investee which was accounted for as an available-for-sale debt investment as of December 31, 2021 (Note 10). Pursuant to a share purchase agreement entered into in January 2022 between the Group and some other investees |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Restricted Net Assets | 27. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the entities incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s entities in the PRC are required to annually appropriate 10% of their net after-tax Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting such conversion may temporarily delay the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. For the year ended December 31, 2021, the Company performed a test on the restricted net assets of subsidiaries and VIE in accordance with Securities and Exchange Commission Regulation S-X 4-08 |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. |
Consolidation | (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the 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 VIE and has been determined to be the primary beneficiary of the VIE. |
Use of Estimates | (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, 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 consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of multiple element revenue contracts, the valuation allowance for deferred tax assets and income tax, 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, and allowances for credit losses, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Foreign Currency Translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in 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 (loss) in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end |
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$1.00 =RMB6.3726 on December 30, 2021 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Cash and Cash Equivalents | (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. |
Restricted cash | (g) Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash is substantially cash balance on deposit required by its commercial banks, the court and government department. |
Short-Term Deposits | (h) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. |
Short-term investments | (i) Short-term investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Receivables | ( j Receivables Before January 1, 2020, the Group determined the allowance for doubtful accounts based on an assessment of historical collection activity, the current business environment and forecasts that may affect the customers’ ability to pay. From January 1, 2020, the Group adopted ASU No. 2016-13, The Group’s accounts receivable and other receivables recorded in amount due from related parties, prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from third-party payment platforms and advertising customers. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical experience of loss severity and recoveries, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. Other key factors that influence the expected credit loss analysis include credit rating, 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. No significant impact of changes in the assumptions since adoption. |
Investments | ( k Investments Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. Equity Investments without Readily Determinable Fair Values The Group elected to record equity investments without readily determinable fair values, which are not accounted for using the equity method and do not qualify for the existing practical expedient in ASC 820 to estimate fair value using the net asset value per share (or its equivalent) of the investments and, at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying values of the equity investments in earnings. Changes in the carrying values of the equity investment are made whenever there are impairment or observable price changes in orderly transactions for the identical or similar investment of the same issuer that are known or that can reasonably be known to the Group based on reasonable effort. For equity investments without readily determinable fair value for which the Group has elected to apply the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying judgment in considering various factors and events including a) adverse performance of investees; b) adverse industry developments affecting investees; and c) adverse regulatory social, economic or other developments affecting investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in earnings equal to the difference between the carrying value and fair value. Available-for-sale Debt Investments The Group has classified its investment in debt securities, other than those the held to maturity debt securities, as available-for-sale securities. The Group recorded available-for-sale debt investments at estimated fair values with the aggregate unrealized gains and losses, net of tax, being reflected in “accumulated other comprehensive income (loss)” in the consolidated balance sheets. If the amortized cost basis of an available-for-sale investment exceeds its fair value and if the Group has the intention to sell the investment or it is more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis, an impairment is recognized in the consolidated statements of comprehensive income. If the Group does not have the intention to sell the investment and it is not more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis and the Group determines that the decline in fair value below the amortized cost basis of an available-for-sale investment is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance for credit losses along with the operating expense in the consolidated statements of comprehensive income. The allowance is measured as the amount by which the debt investment’s amortized cost basis exceeds the Group’s best estimate of the present value of cash flows expected to be collected. The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. |
Property and Equipment | (l) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Property and equipment mainly consist of servers, computers and equipment, leasehold improvements and others. Estimated useful lives Residual rate Servers, computers and equipment 3 0% Leasehold improvements Shorter of lease term or the estimated useful lives of the assets 0% Others 3-5 0%-5% Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of comprehensive income. |
Intangible Assets | ( m Intangible assets Intangible assets mainly consist of copyrights of video content, license, software, domain names and trademark. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Copyrights of video content 1 – 4 years License 15 years Software 1 – 10 years Domain names 15 years Trademarks 5 years |
Impairment of Long-Lived Assets | ( n Impairment of long-lived assets For long-lived assets other than investments whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset grouping may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the asset grouping. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2019, 2020 and 2021. |
Revenue | (o) Revenue On January 1, 2018, the Group adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Based on the Company’s assessment, the adoption of ASC 606 did not have any material impact to the Group’s consolidated financial statements and there were no material differences between the Company’s adoption of ASC 606 and its historic accounting under ASC 605. Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The following table disaggregates the Group’s revenue by major type for the years ended December 31, 2019, 2020 and 2021: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Live streaming 7,976,214 10,311,624 10,186,204 Other revenues (i) 398,287 602,750 1,165,242 Total 8,374,501 10,914,374 11,351,446 (i) Other revenues mainly include advertising, sub-licensing and online games revenues. 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 primarily from sales of virtual items in the platforms. The Group has a recharge system for users to purchase the Group’s virtual currency, which can then be utilised to purchase virtual items for use on the live streaming platforms. Users can recharge via various online 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 in the revenue generating arrangement and 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/payable 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 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. For 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’s 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 is 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. As the Group’s live streaming virtual items are generally sold without right of return and the Group does not provide any other credit and incentive to its users, therefore accounting of variable consideration when estimating the amount of revenue to recognize is not applicable to the Group’s live streaming business. (ii) Sub-licensing The Group generates licensing revenue primarily from sub-licensing e-sports Revenues from barter transactions were recognized during the year ended December 31, 2021, in which the e-sports contents are sub-licensed to other live streaming platforms. Barter transactions in which e-sports contents are received in exchange for other e-sports contents are recorded based on the fair values of the e-sports contents received under ASC 606. (iii) 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. The Group provides sales incentives to certain customers in the forms of discounts and rebates based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. The Group believes that there will not be significant changes to its estimates of variable consideration. (iv) Online games 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 users to purchase game tokens for use. Game users can recharge via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Game tokens is non-refundable Majority of online games revenues were derived from the Group’s self-developed games for the years 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, advertising customers, distribution platforms and livestreaming platforms. Prior to January 1, 2020, The Group records the allowance for specifically identified non-recoverable Contract liabilities primarily consist 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. During the years ended December 31, 2019, 2020 and 2021, the Group recognized revenue amounting to RMB483,781, RMB845,966 and RMB485,878, respectively, that had been was included in the corresponding contract liability balance at the beginning of the years. As of December 31, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligation was 2022 2023 and after Total RMB RMB RMB Revenue expected to be recognized 459,509 118,975 578,484 |
Cost of Revenues | (p) Cost of revenues Amounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of (i) revenue sharing fees to broadcasters and content costs, including payments to e-sports content providers and other various content providers, (ii) bandwidth costs, (iii) salaries and welfare, (iv) payment handling costs, (v) share-based compensation, (vi) depreciation and amortization expense for servers and other equipment, and intangibles directly related to operating the platform, (vii) other taxes and surcharges, and (viii) other costs. |
Research and Development Expenses | (q) Research and development expenses Research and development expenses primarily consist of (i) salaries and welfare for research and development personnel, and (ii) share-based compensation for research and development personnel. Costs incurred during the research stage are expensed as incurred. Costs incurred in the development stage, prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The Company recognizes software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. The Company ha d |
Sales and Marketing Expenses | (r) Sales and marketing expenses Sales and marketing expenses primarily consist of (i) advertising and market promotion expenses, (ii) salaries and welfare for sales and marketing personnel, and (iii) share-based compensation for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB353,829, RMB449,042 and RMB655,957 for the years ended December 31, 2019, 2020 and 2021, respectively. |
General and Administrative Expenses | (s) General and administrative expenses General and administrative expenses primarily consist of (i) salaries and welfare for management and administrative personnel, and (ii) share-based compensation for management and administrative personnel. |
Employee Social Security and Welfare Benefits | (t) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the accompanying statement of comprehensive income amounted to RMB128,256, RMB116,292 and RMB187,200 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Share-Based Compensation | (u) Share-based compensation Share-based compensation expense arises from share-based awards, including 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 Huya Share-based Awards Huya’s share options Prior to the IPO date (Note 1(b)), in determining the fair value of share options granted, the binomial option-pricing model was applied. The determination of the fair value was affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends. Following the listing of the Company, the grant date fair value of share options began to be determined based on the stock price of the Company’s ordinary shares listed on the 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. Prior to the IPO, in determining the fair value of the underlying ordinary shares related to the RSUs granted, a combination of discounted cash flow method (“DCF”) under income approach and guideline companies method (“GCM”) under market approach is applied, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. DCF method of the income approach involves applying appropriate weighted average cost of capital, or WACC, to discount the future cash flows forecast, based on the Company best estimates as of the valuation date, to present value. The WACC was determined based on a consideration of the factors including risk-free rate, comparative industry risk, equity risk premium, company size and non-systematic After the completion of IPO, the fair value of restricted share units is determined with reference to stock price of Huya in NYSE. Awards granted to non-employees The Company adopted ASU 2018-07, 2018-07”) non-employee non-employees The share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the graded-vesting attribution method, net of estimated forfeitures, over the requisite service period. 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. |
Leases | (v) 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. Operating lease expense are recognized on a straight-line basis as cost of sales, selling, general and administrative expenses and research and development expenses over the term of the lease. |
Government grants | (w) Government grants Government grants, which mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development, are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated income statements upon receipt and when all conditions attached to the grants are fulfilled. |
Income Taxes | (x) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in statement of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Group did not recognize any interest and penalties associated with uncertain tax positions for the years ended December 31, 2019, 2020 and 2021. As of December 31, 2020 and 2021, the Group did not have any significant unrecognized uncertain tax positions. |
Statutory Reserves | ( y Statutory reserves The Group’s PRC entities are required to make appropriations to certain non-distributable In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Group’s subsidiaries registered as WFOEs have to make appropriations from its after-tax after-tax In addition, in accordance with the Company Laws of the PRC, the Group’s entities registered as PRC domestic companies must make appropriations from its after-tax non-distributable after-tax The use of the general reserve fund, statutory surplus fund and discretionary surplus fund are restricted to the off-setting During the year s |
Related Parties | ( z Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Dividends | ( aa Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2019, 2020 and 2021. The Group does not have any present plan to pay any dividends on ordinary shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Income Per Share | ( bb Income per share Basic income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted income per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options and the vesting of restrict share units using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted income per share calculation when inclusion of such share would be anti-dilutive. |
Segment Reporting | ( cc Segment reporting The Group’s chief operating decision maker has been identified as its 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 Company is domiciled in the Cayman Islands while the Group mainly operates its businesses in the PRC and earns majority of the revenues from external customers attributed to the PRC. |
Recently Issued Accounting Pronouncements | ( dd Recently issued accounting pronouncements Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU 2019-12, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. In January 2020, the FASB issued ASU 2020-01, In November 2021, the FASB issued ASU No.2021-10, Government Assistance (Topic 832). This ASU requires business entities to disclose information about government assistance they receive if the transactions were accounted for by analogy to either a grant or a contribution accounting model. The disclosure requirements include the nature of the transaction and the related accounting policy used, the line items on the balance sheets and statements of operations that are affected and the amounts applicable to each financial statement line item and the significant terms and conditions of the transactions. The ASU is effective for annual periods beginning after December 15, 2021. The disclosure requirements can be applied either retrospectively or prospectively to all transactions in the scope of the amendments that are reflected in the financial statements at the date of initial application and new transactions that are entered into after the date of initial application. The ASU is currently not expected to have a material impact on the Group’s financial results or financial position. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Details of the Subsidiaries, VIEs and VIE's Subsidiaries | As of December 31, 2021, the Company’s principal subsidiaries and VIE are as follows: Name Place of incorporation Date of incorporation % of direct or indirect economic ownership Principal activities Principal subsidiaries 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 services Hainan Huya Entertainment Information Technology Co., Ltd. (“Hainan Huya”) PRC December 4, 2019 100 % Cultural and Creative services VIE Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 100 % Internet value added services |
Schedule of Condensed Consolidated Statements Data for the VIEs | The following table sets forth the financial data for the VIEs on an aggregated basis. For purposes of this presentation, activity within and between the VIEs have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination. Presentation of the comparative data for 2019 and 2020 have been expanded to conform to the current year presentation. Selected Condensed Consolidated Balance Sheets Data for the VIEs As of December 31, 2020 2021 RMB RMB Assets Cash and cash equivalents 315,346 474,143 Restricted cash 136,989 45,412 Short-term deposits 100,000 — Accounts receivable, net 47,497 64,301 Prepayments and other current assets 78,910 216,740 Amounts due from related parties 59,284 129,364 Amounts due from Group companies (1) 1,472,386 1,379,170 Investments 231,311 449,684 Intangible assets, net 61,846 80,010 Right of use asset 826 1,701 Prepayments and other non-current assets 6,135 1,223 Other assets 71,995 13,035 Total assets 2,582,525 2,854,783 Deferred revenue and Advances from customers 651,636 563,259 Accrued liabilities and other current liabilities 492,164 500,530 Amount due to related parties 31,791 101,247 Other liabilities 59,320 12,355 Total liabilities 1,234,911 1,177,391 Total shareholders’ equity 1,347,614 1,677,392 These balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated. Selected Condensed Consolidated Statements of Operation Data for the VIEs For the year ended December 31, 2019 2020 2021 RMB RMB RMB Third-party revenues 8,293,317 10,738,074 10,897,479 Total cost and expenses (2) (7,954,302 ) (10,477,605 ) (10,789,307 ) Others, net 129,487 82,469 195,202 Income before income tax 468,502 342,938 303,374 Income tax expenses (71,401 ) (76,394 ) (50,374 ) Share of loss from equity method investments (2,775 ) (817 ) (37 ) Net income 394,326 265,727 252,963 Selected Condensed Consolidated Cash Flows Data for the VIEs For the year ended December 31, 2019 2020 2021 RMB RMB RMB Net cash provided by operating activities (3) 1,667,634 230,204 1,176,397 Capital contributions and advances to Group companies (861,078 ) (1,300,825 ) (911,916 ) Other investing activities (1,023,878 ) 1,083,634 (197,261 ) Net cash used in investing activities (1,884,956 ) (217,191 ) (1,109,177 ) Other financing activities (519 ) — — Net cash used in financing activities (519 ) — — Note: (1) Inter-company service fees for technology support, business support and consulting fees (collectively defined as “VIE service fees”) are charged pursuant to the exclusive business cooperation agreement. As of December 31, 2019, 2020, and 2021, the outstanding balance of amounts due from Group companies were inter-company advances. There were no outstanding balances for VIE service fees charged to the VIEs. (2) For the years ended December 31, 2019, 2020 and 2021, VIE service fees were charged by WFOE and other subsidiaries to the VIEs amounting to RMB929.6 million, RMB7,543.2 million and RMB8,664.1 million. (3) For the years ended December 31, 2019, 2020 and 2021, cash paid by the VIEs to the WFOE and other subsidiaries for VIE service fees were RMB929.6 million, RMB7,543.2 million and RMB8,664.1 million. |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Lives and Residual Rate | Estimated useful lives Residual rate Servers, computers and equipment 3 0% Leasehold improvements Shorter of lease term or the estimated useful lives of the assets 0% Others 3-5 0%-5% |
Schedule of Amortization of Finite-Lived Intangible Assets Computed Using the Straight-Line Method Over the Following Estimated Useful Lives | Estimated useful lives Copyrights of video content 1 – 4 years License 15 years Software 1 – 10 years Domain names 15 years Trademarks 5 years |
Disaggregation of Revenue | The following table disaggregates the Group’s revenue by major type for the years ended December 31, 2019, 2020 and 2021: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Live streaming 7,976,214 10,311,624 10,186,204 Other revenues (i) 398,287 602,750 1,165,242 Total 8,374,501 10,914,374 11,351,446 (i) Other revenues mainly include advertising, sub-licensing and online games revenues. |
Summary of Revenue Related to Performance Obligation | 2022 2023 and after Total RMB RMB RMB Revenue expected to be recognized 459,509 118,975 578,484 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents Balance | . Cash and cash equivalents balance as of December 31, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 Amount RMB equivalent Amount RMB equivalent RMB 989,824 989,824 1,341,236 1,341,236 US$ 344,450 2,247,500 66,204 422,096 SGD 11,131 54,892 5,642 26,617 Others N/A 1,357 N/A 835 Total 3,293,573 1,790,784 (i) As of December 31, 2020 and 2021, the other currencies consist of Hong Kong Dollar, Brazilian Real and Thai Baht. |
Short-Term Deposits (Tables)
Short-Term Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Schedule of Short-Term Deposits Balance | Short-term deposits balance as of December 31, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 Amount RMB equivalent Amount RMB equivalent RMB 1,800,000 1,800,000 2,460,000 2,460,000 US$ 639,824 4,174,790 924,125 5,891,945 Total 5,974,790 8,351,945 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | December 31, 2020 2021 RMB RMB Accounts receivable, gross 75,686 90,330 Less: expected credit loss provision (4,449 ) (2,296 ) Accounts receivable, net 71,237 88,034 |
Schedule of Allowance for Doubtful Accounts | For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance prior to ASC 326 — (922 ) — Impact of adoption to ASC326 — (3,122 ) — Balance at beginning of the year (922 ) (4,044 ) (4,449 ) Current year provision — (1,907 ) (715 ) Current year reversal — 1,502 2,868 Balance at end of the year (922 ) (4,449 ) (2,296 ) |
Prepayments and Other Current_2
Prepayments and Other Current Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Current Assets, Net [Abstract] | |
Schedule of Prepayments and Other Current Assets, Net | December 31, 2020 2021 RMB RMB Prepayments to vendors and content providers 203,972 196,466 Input value-added tax to be deducted 82,966 184,061 Interests receivable 103,531 129,989 Prepayment of income tax 58,601 78,101 Receivables from the exercise of vested share options and individual income tax paid on behalf of employees related to share-based awards 13,285 45,217 Loan to a third party 11,350 12,850 Prepayments to third-party payment platform 6,093 8,710 Others 15,634 9,574 Less: expected credit loss provision (324 ) (23 ) Total 495,108 664,945 |
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 year s 2019, For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance prior to ASC 326 — — — Impact of adoption to ASC326 — (308 ) — Balance at beginning of the year — (308 ) (324 ) Current year provision — (155 ) — Current year reversal — 139 301 Balance at end of the year — (324 ) (23 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | December 31, 2020 2021 RMB RMB Equity investments without readily determinable fair values (i) 279,818 450,937 Debt investments (ii) — 157,160 Equity method investments (iii) 187,388 520 467,206 608,617 (i) Equity investments without readily determinable fair values include investment in equity securities of private investee companies over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock. In 2020 and 2021, the Group acquired equity interests in a number of privately-held investee companies at with a total consideration of RM The Group elected to apply the measurement alternative to account for these investments (see Note 2(k)). (ii) In 2021, the Group made an investment in debt securities (i.e. certain preferred shares) of a privately-held investee company at a cash consideration of RM (“Debt Investment”). Given that the preferred stock will become redeemable simply by the the passage of time and the intention of the Group is to hold and consider a future disposal, the investment is accounted for as an available-for-sale debt investment (see Note 2(k)), wherein the investment is carried at fair value with realized or unrealized gains or losses recorded in accumulative other comprehensive income (loss). As of December 31, 2021, the fair value of the Debt Investment is not materially different from the fair value at the acquisition date. (iii) In 2018, the Group invested as one of the limited partners with significant influence in an investment fund (the “Fund”) which owns an equity interest in an online game company, which was accounted for as an equity investment. For the year ended December 31, 2021, the Group disposed of its interest (through sales to two separate parties) in the Fund with a disposal gain of R The t otal cash con sideration was RMB554,889 , of wh ich RMB529,070 was related to a tra nsaction under taken with an entity owned by Tencent. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, net | Property and equipment consist of the following: December 31, 2020 2021 RMB RMB Gross carrying amount Servers, computers and equipment 186,874 204,082 Leasehold improvements 34,244 34,653 Others 11,002 19,211 Total 232,120 257,946 Less: accumulated depreciation (137,565 ) (178,335 ) Property and equipment, net 94,555 79,611 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Summary of Group's Intangible Assets, Net | The following table summarizes the Group’s intangible assets: December 31, 2020 2021 RMB RMB Gross carrying amount Copyrights of video content s 83,865 133,865 License 32,000 32,000 Software 11,142 21,498 Domain names 5,283 5,283 Trademark s 1,132 1,132 Total 133,422 193,778 Less: accumulated amortization Copyrights of video content s (53,262 ) (82,312 ) License (5,689 ) (7,822 ) Software (8,728 ) (16,125 ) Domain names (2,022 ) (2,445 ) Trademark s (925 ) (1,132 ) Total accumulated amortization (70,626 ) (109,836 ) Intangible assets, net 62,796 83,942 |
Schedule of Estimated Amortization Expenses | As of December 31, 2021, intangible assets amortization expense for future years is expected to be as follows: Year end ed Amortization expense of intangible assets RMB 2022 32,042 2023 22,710 2024 7,943 2025 2,768 2026 2,734 |
Schedule of Weighted Average Amortization Periods of Intangible Assets | The weighted average amortization periods of intangible assets as of December 31, 2020 and 2021 are as below: December 31, 2020 2021 Copyrights of video content s 2 years 3 years License 15 years 15 years Software 2 years 4 years Domain names 15 years 15 years Trademark s 5 years 5 years |
Prepayments and Other Non-Cur_2
Prepayments and Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Non-Current Assets [Abstract] | |
Schedule of Prepayments and Other Non Current Assets | December 31, 2020 2021 RMB RMB Prepayments to vendors and content providers 58,706 139,968 Refundable lease deposits 8,173 8,519 Prepayments for purchase of land use right (i) 310,220 — Others 2,362 2,400 Total 379,461 150,887 (i) In November 2020, the Company had entered into an agreement for the acquisition of land use rights for its operations and the prepayment was amounted to RM as of December 31, 2020. In July 2021, the Company obtained the effective land use certificate and accordingly recognized the prepayment of the land use right as right of use asset. |
Advances from customers and d_2
Advances from customers and deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Advances From Customers And Deferred Revenue [Abstract] | |
Advances from customers and deferred revenue | December 31, 2020 2021 RMB RMB Deferred revenue, current 399,053 438,309 Advances from customers 86,825 21,200 Total current advances from customers and deferred revenue 485,878 459,509 Deferred revenue, non-current 178,144 118,975 Total non-current 178,144 118,975 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Current Liabilities [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | December 31, 2020 2021 RMB RMB Revenue sharing fees 990,867 1,051,354 Salaries and welfare 263,310 231,465 Marketing and promotion expenses 152,010 175,357 Bandwidth costs 86,967 136,444 Other taxes payable 43,158 59,054 License fees 40,749 52,624 Deposits from content providers, suppliers and advertising customers 50,909 41,941 Others 79,319 97,213 Total 1,707,289 1,845,452 |
Cost of Revenues (Tables)
Cost of Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cost of Revenues [Abstract] | |
Schedule of Cost of Revenues | For the year ended December 31, 2019 2020 2021 RMB RMB RMB Revenue sharing fees and content costs 5,552,712 7,086,832 8,374,555 Bandwidth costs 800,827 879,172 713,672 Salaries and welfare 255,258 306,805 322,604 Payment handling costs 120,429 154,538 151,913 Share-based compensation 31,593 64,942 56,629 Others 131,760 154,019 131,787 Total 6,892,579 8,646,308 9,751,160 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Loss) Income Before Income Tax Benefits | Income before income tax expenses for the years ended December 31, 2019, 2020 and 2021 were taxed within the following jurisdictions: For the year ended December 31, 2019 2020 2021 RMB RMB RMB PRC entities 796,062 994,163 360,160 Non-PRC (229,036 ) 38,365 (100,641 ) Total 567,026 1,032,528 259,519 |
Schedule of Current and Deferred Portion of Income Tax (Benefits) Expenses Included in the Consolidated Statements of Comprehensive Income | The current and deferred portion of income tax (benefits) expenses included in the consolidated statements of comprehensive income for the years ended December 31, 2019, 2020 and 2021 are as follows: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Income tax Current income tax expenses 110,408 142,710 16,046 Deferred income tax (benefits) expenses (14,871 ) 18,818 28,119 Subtotal income tax expenses 95,537 161,528 44,165 Income tax expenses applicable to Non-PRC Current income tax expenses 541 15,466 7,056 Deferred income tax (benefits) expenses — (210 ) 4,006 Subtotal income tax Non-PRC 541 15,256 11,062 Total income tax expenses 96,078 176,784 55,227 |
Schedule of Reconciliation of Total Tax Expenses Computed by Applying the Respective Statutory Income Tax Rate to Pre-Tax Income | The reconciliation between the statutory income tax rate and the effective tax rate is as follows: For the year ended December 31, 2019 2020 2021 PRC Statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of tax holiday and preferential tax benefit s (18.9 )% (12.3 )% (15.6 ) Effect of varying tax rates available in different jurisdictions (i) (3.3 )% (1.6 )% (0.7 ) Permanent differences (ii) 6.7 % 6.1 % 19.0 % Change in valuation allowance 15.8 % 4.8 % 10.7 % Effect of Super Deduction available to the Group (8.3 )% (4.9 )% (17.1 ) Effective income tax rate 17.0 % 17.1 % 21.3 % Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) (0.42 ) (0.56 ) (0.11 ) (i) For the years ended December 31, 2019, 2020 and 2021, the effect of varying tax rates in different jurisdictions is mainly driven by the interest income derived from short-term under the tax laws of Cayman Islands, partially offset by the losses arising from overseas business which is subject to an income tax rate o f 17 % under the ta x laws of Singapore. (ii) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. |
Schedule of Tax Effects of Temporary Differences that Give Rise to Deferred Tax Asset Balances | December 31, 2020 2021 RMB RMB Deferred tax assets Tax loss carried forward 142,408 181,860 Unrealized profit s 45,354 5,420 Deferred revenue 2,898 2,435 Others 1,084 1,766 191,744 191,481 Less: Valuation allowance (i) (143,431 ) (171,236 ) Total deferred tax assets 48,313 20,245 Deferred tax liabilities Unrealized gains on investments 13,350 4,597 Total deferred tax liabilities 13,350 4,597 Net deferred tax assets 34,963 15,648 (i) Valuation allowance is provided against deferred tax assets wh e |
Schedule of Valuation Allowance For Deferred Tax Assets | Movement of valuation allowance For the year ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the year 21,899 94,637 143,431 Additions 89,002 61,069 42,252 Reversals/write-off (16,264 ) (12,275 ) (14,447 ) Balance at end of the year 94,637 143,431 171,236 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Compensation Expense Recognized for Share-Based Awards Granted | Compensation expense recognized for share-based awards granted by Huya and JOYY was as follows: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Share-based compensation expenses - Related to Huya Share-based Awards 279,748 408,208 289,705 - Related to JOYY’s Share-based Awards 1,996 — — Total 281,744 408,208 289,705 |
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 options Weighted average exercise price (US$) Weighted average remaining contractual life (years) Aggregate (US$) As of December 31, 2018 17,520,555 2.5210 8.82 227,049 Forfeited (257,750 ) 2.5500 Exercised (2,011,144 ) 2.3290 As of December 31, 2019 15,251,661 2.5458 7.84 234,939 Forfeited (18,000 ) 2.5500 Exercised (14,440,921 ) 2.5456 As of December 31, 2020 792,740 2.5500 6.61 13,778 Forfeited — — Exercised (533,425 ) 2.5500 As of December 31, 2021 259,315 2.5500 5.60 1,138 Expected to vest at December 31, 2021 — — — — Exercisable as of December 31, 2021 259,315 2.5500 5.60 1,138 |
Share Based Payment Award Stock Options Valuation Assumptions | Prior to the completion of the IPO, the Company has used the binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions used were as follows: 2018 Weighted average fair value per option granted US$ 5.2130 Weighted average exercise price US$ 2.47 Risk-free interest rate (1) 2.83 % Expected term (in year) (2) 10 Expected volatility (3) 55 % Dividend yield (4) — (1) The risk-free interest (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The Company has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. |
Summary of Restricted Share Units Activity | The following table summarizes the activity of all restricted share units for the years ended December 31, 2019, 2020 and 2021: Number of restricted share units Weighted average grant-date fair value (US$) Outstanding, December 31, 2018 4,107,185 9.0331 Granted 2,908,370 22.7642 Forfeited (270,707 ) 14.8129 Vested (465,000 ) 7.1600 Outstanding, December 31, 2019 6,279,848 15.4350 Granted 3,144,152 18.6180 Forfeited (603,929 ) 17.9943 Vested (2,175,765 ) 13.6528 Outstanding, December 31, 2020 6,644,306 17.1506 Granted 3,550,617 13.9339 Forfeited (806,435 ) 17.9309 Vested (2,547,290 ) 16.6645 Outstanding, December 31, 2021 6,841,198 15.5702 Expected to vest at December 31, 2021 6,281,465 15.6133 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Ordinary Share | Basic and diluted net income per share for the year ended December 31, 2019, 2020 and 2021 are calculated as follow: For the year ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net income 468,173 884,158 583,499 Numerator for basic and diluted net income per share 468,173 884,158 583,499 Denominator: Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding 214,811,862 227,081,238 238,198,117 —Diluted effect of share option s 14,060,031 8,076,339 497,861 —Diluted effect of restricted share units 3,153,068 3,474,036 3,094,467 Denominator for diluted calculation 232,024,961 238,631,613 241,790,445 Net income per ordinary share —Basic 2.18 3.89 2.45 —Diluted 2.02 3.71 2.41 Net income per ADS* —Basic 2.18 3.89 2.45 —Diluted 2.02 3.71 2.41 * Each ADS represents one Class A ordinary share. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Significant Related Party Transactions | As detailed in Note 1(a), as of April 3, 2020, Tencent’s voting power in Huya was increased to over 50%, and Tencent became the parent company of the Company from then onwards. For the year ended December 31, 2019 2020 2021 RMB RMB RMB Content costs charged by Tencent (i) 123,204 127,224 485,988 Operation support services provided by Tencent 219,403 342,487 370,393 Disposal gain of an investment (Note 10) — — 360,589 Sub-licensing and other revenues from Tencent 8,028 14,349 80,302 Others 31,739 30,540 14,617 (i) In April 2021, the Company entered into a related party transaction with a fellow subsidiary of Tencent to purchase an exclusive license for broadcasting League of Legends matches during the period from 2021 to 2025, with a total consideration of RMB2,013 million. Transactions with JOYY For the year ended December 31, 2019 2020 2021 RMB RMB RMB Operation support services provided by JOYY 17,455 4,187 2,543 Purchase of services by JOYY on behalf of Huya 22,622 18,945 268 Cash collected by JOYY as a payment platform for Huya 1,362,489 — — Repayment from JOYY in relation to the payment on behalf of Huya’s employees 15,306 — — Others 12,637 1,054 — For the year ended December 31, 2019 2020 2021 RMB RMB RMB Sub-licensing and other revenues from Tencent and Huya’s related parties — 8,197 188,209 Content costs and revenue sharing fees charged by Tencent and Huya’s related parties — 85,361 102,311 Others — 34,044 21,013 |
Schedule of Amounts Due from/to Related Parties | As of December 31, 2020 and 2021, the amounts due from/to related parties are as follows: December 31, 2020 2021 RMB RMB Amounts due from related parties Tencent 59,832 108,686 JOYY 4,913 27,817 Others 356 12,450 Less: expected credit loss provision (299 ) (393 ) Total 64,802 148,560 Amounts due to related parties Tencent 85,304 177,452 Others 10,153 38,676 Total 95,457 216,128 |
Schedule of Expected Allowance for Credit Loss Provision Related to Amounts Due from Related Parties | The following table presents the activity in the expected credit loss provision related to a s For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance prior to ASC 326 — — — Impact of adoption to ASC326 — (203 ) — Balance at beginning of the year — (203 ) (299 ) Current year provision — (180 ) (387 ) Current year reversal — 84 293 Balance at end of the year — (299 ) (393 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Financial Instruments Measured at Fair Value on Recurring Basis | The following table sets forth the financial instruments measured or disclosed at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2020 and 2021: As of December 31, 2020 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Cash equivalents (i) 401,269 — — 401,269 Short-term investments (ii) — 1,206,539 — 1,206,539 As of December 31, 2021 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Cash equivalents (i) 401,291 — — 401,291 Short-term investments (ii) — 816,331 — 816,331 Available-for-sale debt investments (iii) — — 157,160 157,160 (i) Cash equivalents mainly consist of time deposits with original maturities of three months or less and highly liquid investments that are readily convertible to known amounts of cash. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Company classifies the valuation techniques that use the pervasive interest rates input as Level 1 of fair value measurements. (ii) 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 values are 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. (iii) Available-for-sale debt investments were investments made by the Group without readily determinable fair values as set out in Note 10, which were categorized as Level 3 in the fair value hierarchy. These investments were valued based on a model utilizing unobservable inputs requiring significant management judgment and estimation. The Company uses a combination of valuation methodologies, including income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees, future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies. Management determined the fair value of Level 3 investments based on income approach using various unobservable inputs. The determination of the fair value required significant judgement by management with respect to the assumptions and estimates for risk-free rate, weighted average cost of capital and probability in equity allocation. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Cost | The following table summarizes the lease expense for the year s For the year ended December 31, 2019 2020 2021 RMB RMB RMB Operating lease expense 30,540 32,781 40,001 Short-term lease expense 19,149 17,113 16,438 Total lease expense 49,689 49,894 56,439 Weighted-average remaining lease term (in years) – operating leases 2.6 Weighted-average discount rate – operating leases 4.8 % |
Summary of Future Minimum Lease Payments | As of December 31, 2021, future minimum lease payments under non-cancellable right-of-use For the year ending December 31, Future minimum payments RMB 2022 37,485 2023 34,510 2024 10,100 2025 4,593 2026 and thereafter — Total undiscounted cash flows 86,688 Less: imputed interest (5,131 ) Total 81,557 |
Summary of Operating Lease Payments | Supplemental cash flow information related t o For the year end December 31, 2019 2020 2021 RMB RMB RMB Cash paid for operating leases 28,847 33,028 43,024 Lease liabilities arising from obtaining right-of-use 33,399 21,024 26,077 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases | As of December 31, 2021, future minimum payments under non-cancelable Operating RMB 2022 8,033 2023 4,999 2024 1,127 2025 and thereafter 225 14,384 |
Schedule of Capital And Other Commitments | As of December 31, 2021, capital expenditures contracted for are analyzed as follows: Capital RMB Construction in progress 59,612 Investments 30,000 89,612 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Detail) ¥ in Thousands, $ in Millions | Apr. 03, 2020shares | Apr. 30, 2019USD ($)shares | May 31, 2018USD ($)shares | Dec. 31, 2021 | Dec. 31, 2019CNY (¥) |
Organization And Principal Activities [Line Items] | |||||
Issuance of ordinary shares | ¥ | ¥ 2,110,066 | ||||
Tencent Holdings Limited [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Percentage of common shares fully diluted | 50.00% | ||||
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 | |||
Class A-1 Preferred Shares [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Number of shares converted into ordinary shares | 17,647,058 | ||||
Class A-2 Preferred Shares [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Number of shares converted into ordinary shares | 4,411,765 | ||||
Class B-2 Preferred Shares [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Number of shares converted into ordinary shares | 64,488,235 | ||||
Common Class B [Member] | Tencent Holdings 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 | ||||
Guangzhou Huya Information Technology Company Limited [Member] | Guangzhou Huya Technology Co Ltd [Member] | Exclusive Business Cooperation Agreement [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Term of agreement | 10 years | ||||
Extended term | 10 years | ||||
Guangzhou Huya Information Technology Company Limited [Member] | Guangzhou Huya Technology Co Ltd [Member] | Exclusive Purchase Option Agreement [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Term of agreement | 10 years | ||||
Extended term | 10 years | ||||
Guangzhou Huya Information Technology Company Limited [Member] | Guangzhou Huya Technology Co Ltd [Member] | Power Of Attorney [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Term of agreement | 10 years | ||||
Extended term | 1 year | ||||
Guangzhou Huya Information Technology Company Limited [Member] | Guangzhou Huya Technology Co Ltd [Member] | Shareholder Voting Rights Proxy Agreement [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Period of prior written notice required to terminate the agreement | 30 days | ||||
Term of agreement | 10 years | ||||
Extended term | 1 year | ||||
Guangzhou Huya Information Technology Company Limited [Member] | Guangzhou Huya Technology Co Ltd [Member] | Exclusive Option Agreement [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Term of agreement | 10 years |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Details of the Subsidiaries, VIEs and VIE's Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Huya Limited [Member] | |
Subsidiaries and Variable Interest Entity [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 Entity [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 Entity [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 |
Guangzhou Huya Information Technology Co., Ltd. ("Guangzhou Huya") [Member] | |
Subsidiaries and Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Dec. 4, 2019 |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Cultural and Creative services |
Guangzhou Huya Information Technology Company Limited [Member] | |
Subsidiaries and Variable Interest Entity [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 |
Organization and Principal Ac_5
Organization and Principal Activities - Schedule of Condensed Consolidated Balance Sheets Data for the VIEs (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Assets | |||||||
Cash and cash equivalents | ¥ 1,790,784 | $ 281,013 | ¥ 3,293,573 | ||||
Restricted cash | 55,670 | 8,736 | 164,889 | ||||
Short-term deposits | 8,351,945 | 1,310,602 | 5,974,790 | ||||
Accounts receivable, net | 88,034 | 13,814 | 71,237 | ||||
Prepayments and other current assets | 664,945 | 104,344 | 495,108 | ||||
Amounts due from related parties | 148,560 | 23,312 | 64,802 | ||||
Investments | 608,617 | 95,505 | 467,206 | ||||
Right of use asset | 395,371 | 62,042 | 87,418 | ¥ 92,075 | |||
Prepayments and other non-current assets | 150,887 | 23,677 | 379,461 | ||||
Total assets | 13,254,942 | 2,079,987 | 12,410,687 | ||||
Deferred revenue and Advances from customers | 459,509 | 72,107 | 485,878 | ||||
Accrued liabilities and other current liabilities | 1,845,452 | 289,588 | 1,707,289 | ||||
Amount due to related parties | 216,128 | 33,915 | 95,457 | ||||
Total liabilities | 2,744,741 | 430,706 | 2,633,909 | ||||
Total shareholders' equity | 10,510,201 | $ 1,649,281 | 9,776,778 | ¥ 8,684,850 | ¥ 5,645,007 | ||
Variable Interest Entity (VIE) [Member] | |||||||
Assets | |||||||
Cash and cash equivalents | 474,143 | 315,346 | |||||
Restricted cash | 45,412 | 136,989 | |||||
Short-term deposits | 0 | 100,000 | |||||
Accounts receivable, net | 64,301 | 47,497 | |||||
Prepayments and other current assets | 216,740 | 78,910 | |||||
Amounts due from related parties | 129,364 | 59,284 | |||||
Amounts due from Group companies | [1] | 1,379,170 | 1,472,386 | ||||
Investments | 449,684 | 231,311 | |||||
Intangible assets, net | 80,010 | 61,846 | |||||
Right of use asset | 1,701 | 826 | |||||
Prepayments and other non-current assets | 1,223 | 6,135 | |||||
Other assets | 13,035 | 71,995 | |||||
Total assets | 2,854,783 | 2,582,525 | |||||
Deferred revenue and Advances from customers | 563,259 | 651,636 | |||||
Accrued liabilities and other current liabilities | 500,530 | 492,164 | |||||
Amount due to related parties | 101,247 | 31,791 | |||||
Other liabilities | 12,355 | 59,320 | |||||
Total liabilities | 1,177,391 | 1,234,911 | |||||
Total shareholders' equity | ¥ 1,677,392 | ¥ 1,347,614 | |||||
[1] | Inter-company service fees for technology support, business support and consulting fees (collectively defined as “VIE service fees”) are charged pursuant to the exclusive business cooperation agreement. As of December 31, 2019, 2020, and 2021, the outstanding balance of amounts due from Group companies were inter-company advances. There were no outstanding balances for VIE service fees charged to the VIEs. |
Organization and Principal Ac_6
Organization and Principal Activities - Schedule of Condensed Consolidated Statements of Operation Data for the VIEs (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | ||
Investments in and Advances to Affiliates [Line Items] | |||||
Income before income tax expenses | ¥ 259,519 | $ 40,725 | ¥ 1,032,528 | ¥ 567,026 | |
Share of loss from equity method investments | 379,207 | 59,506 | 28,414 | (2,775) | |
Net income | 583,499 | $ 91,565 | 884,158 | 468,173 | |
Variable Interest Entity (VIE) [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Third-party revenues | 10,897,479 | 10,738,074 | 8,293,317 | ||
Total cost and expenses | [1] | (10,789,307) | (10,477,605) | (7,954,302) | |
Others, net | 195,202 | 82,469 | 129,487 | ||
Income before income tax expenses | 303,374 | 342,938 | 468,502 | ||
Income tax expenses | (50,374) | (76,394) | (71,401) | ||
Share of loss from equity method investments | (37) | (817) | (2,775) | ||
Net income | ¥ 252,963 | ¥ 265,727 | ¥ 394,326 | ||
[1] | For the years ended December 31, 2019, 2020 and 2021, VIE service fees were charged by WFOE and other subsidiaries to the VIEs amounting to RMB929.6 million, RMB7,543.2 million and RMB8,664.1 million. |
Organization and Principal Ac_7
Organization and Principal Activities - Schedule of Condensed Consolidated Cash Flows Data for the VIEs (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | ||
Investments in and Advances to Affiliates [Line Items] | |||||
Net cash provided by operating activities | ¥ 327,453 | $ 51,384 | ¥ 1,239,874 | ¥ 1,945,414 | |
Net cash (used in)/provided by investing activities | (1,880,320) | (295,064) | 1,004,780 | (3,684,971) | |
Net cash provided by financing activities | 10,723 | $ 1,683 | 265,294 | 2,133,651 | |
Variable Interest Entity (VIE) [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Net cash provided by operating activities | [1] | 1,176,397 | 230,204 | 1,667,634 | |
Capital contributions and advances to Group companies | (911,916) | (1,300,825) | (861,078) | ||
Other investing activities | (197,261) | 1,083,634 | (1,023,878) | ||
Net cash (used in)/provided by investing activities | (1,109,177) | (217,191) | (1,884,956) | ||
Other financing activities | 0 | 0 | (519) | ||
Net cash provided by financing activities | ¥ 0 | ¥ 0 | ¥ (519) | ||
[1] | For the years ended December 31, 2019, 2020 and 2021, cash paid by the VIEs to the WFOE and other subsidiaries for VIE service fees were RMB929.6 million, RMB7,543.2 million and RMB8,664.1 million. |
Organization and Principal Ac_8
Organization and Principal Activities - Schedule of Condensed Consolidated Statements Data for the VIEs (Paranthatical) (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Outstanding balances for Varibale Interest Entity fees Charged | ¥ 0 | ¥ 0 | |
Wholly foreign-owned enterprise And Other Subsidiaries [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Variable Interest Entity Service Fees Charged Amount | 8,664,100 | 7,543,200 | ¥ 929,600 |
Payment of Variable Interest Entity Service Fees | ¥ 8,664,100 | ¥ 7,543,200 | ¥ 929,600 |
Principal Accounting Policies -
Principal Accounting Policies - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Jan. 01, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥)Segments | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jan. 01, 2019CNY (¥) |
Significant Accounting Policies [Line Items] | ||||||
Rate of translations of amounts from RMB into US$ | 6.3726 | 6.3726 | ||||
Impairment of long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 | |||
Noble member status duration | 1 month | |||||
Deferred Revenue, Revenue Recognized | ¥ 485,878 | 845,966 | 483,781 | |||
Revenue expected to be recognized from remaining performance obligations | 578,484 | |||||
Employee social security and welfare benefits | ¥ 187,200 | 116,292 | 128,256 | |||
Percentage of weighted to income and market approach | 50.00% | |||||
Interest and penalties recognized associated with uncertain tax positions | 0 | 0 | ||||
Unrecognized uncertain tax positions | ¥ 0 | 0 | ||||
Minimum percentage appropriation to general reserve fund required | 10.00% | 10.00% | ||||
Reserve level threshold for mandatory appropriation requirement (as a percent) | 50.00% | |||||
Minimum percentage appropriation to statutory surplus fund required | 10.00% | 10.00% | ||||
Surplus fund threshold for mandatory appropriation requirement (as a percent) | 50.00% | |||||
Appropriations for the general reserve funds and statutory surplus fund | 0 | |||||
Dividends | ¥ 0 | ¥ 0 | 0 | |||
Number of reportable segment | Segments | 1 | |||||
Operating lease assets | 395,371 | ¥ 87,418 | $ 62,042 | ¥ 92,075 | ||
Operating lease liabilities | 81,557 | ¥ 91,654 | ||||
Increase Decrease Un Accounts Receivable Nonrecoverable Amounts | ¥ 3,067 | |||||
Statutory reserves [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Appropriations for the general reserve funds and statutory surplus fund | ¥ 0 | 57,750 | 30,045 | |||
Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Noble member status duration | 24 months | |||||
Research and Development Expenses [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Capitalized costs | ¥ 0 | 0 | 0 | |||
Sales and Marketing Expenses [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Advertising and market promotion expenses | ¥ 655,957 | ¥ 449,042 | ¥ 353,829 | |||
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 |
Principal Accounting Policies_3
Principal Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives and Residual Rate (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Servers, Computers and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual rate | 0.00% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Residual rate | 0.00% |
Estimated useful lives | Shorter of lease term or the estimated useful lives of the assets |
Other Asset [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual rate | 0.00% |
Other Asset [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Principal Accounting Policies_4
Principal Accounting Policies - Schedule of Amortization of Finite-Lived Intangible Assets Computed Using the Straight-Line Method Over the Following Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Copyrights of video content [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Copyrights of video content [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated useful lives | 4 years |
License [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Software [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Software [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Domain Names [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Trademarks [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Principal Accounting Policies_5
Principal Accounting Policies - Disaggregation of Revenue (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | ¥ 11,351,446 | $ 1,781,290 | ¥ 10,914,374 | ¥ 8,374,501 | |
Live Streaming [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 10,186,204 | $ 1,598,438 | 10,311,624 | 7,976,214 | |
Other Revenues [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | ¥ 1,165,242 | ¥ 602,750 | ¥ 398,287 | |
[1] | Other revenues mainly include advertising, sub-licensing and online games revenues. |
Principal Accounting Policies_6
Principal Accounting Policies - Summary of Revenue Related to Performance Obligation (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Summary of Revenue Related to Performance Obligation [Abstract] | |
2022 | ¥ 459,509 |
2023 and after | 118,975 |
Revenue expected to be recognized | ¥ 578,484 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents Balance (Detail) ¥ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021SGD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020SGD ($) | |
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | ¥ 1,790,784 | $ 281,013 | ¥ 3,293,573 | ||||
Others [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | [1] | 835 | 1,357 | ||||
RMB [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 1,341,236 | 989,824 | |||||
US$ [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 422,096 | $ 66,204 | 2,247,500 | $ 344,450 | |||
SGD [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | ¥ 26,617 | $ 5,642 | ¥ 54,892 | $ 11,131 | |||
[1] | As of December 31, 2020 and 2021, 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 | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Restricted Cash Current | ¥ 55,670 | $ 8,736 | ¥ 164,889 |
Restricted By Government Department For Certain Investigation [Member] | |||
Restricted Cash Current | 55,670 | ¥ 164,889 | |
Restricted cash | ¥ 52,910 |
Short-Term Deposits - Schedule
Short-Term Deposits - Schedule of Short-Term Deposits Balance (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) |
Short Term Deposits [Line Items] | ||||
Short Term Deposits | ¥ 8,351,945 | $ 1,310,602 | ¥ 5,974,790 | |
RMB [Member] | ||||
Short Term Deposits [Line Items] | ||||
Short Term Deposits | 2,460,000 | 1,800,000 | ||
US$ [Member] | ||||
Short Term Deposits [Line Items] | ||||
Short Term Deposits | ¥ 5,891,945 | $ 924,125 | ¥ 4,174,790 | $ 639,824 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Disclosure Of Short Term Investments [Line Items] | |||
Short-term investments | ¥ 816,331 | $ 128,100 | ¥ 1,206,539 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Receivables [Abstract] | |||
Accounts receivable, gross | ¥ 90,330 | ¥ 75,686 | |
Less: expected credit loss provision | (2,296) | (4,449) | |
Accounts receivable, net | ¥ 88,034 | $ 13,814 | ¥ 71,237 |
Accounts Receivable, Net - Summ
Accounts Receivable, Net - Summary of Credit Loss Provision Related to Accounts Receivable (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance | ¥ (922) | ||
Impact of adoption to ASC 326 | (3,122) | ||
Balance at beginning of the year | ¥ (4,449) | (922) | |
Current year provision | (715) | (1,907) | |
Current year reversal | 2,868 | 1,502 | |
Balance at end of the year | (2,296) | (4,449) | (922) |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
Balance at beginning of the year | ¥ (4,449) | (4,044) | (922) |
Balance at end of the year | ¥ (4,449) | ¥ (4,044) |
Prepayments and Other Current_3
Prepayments and Other Current Assets, Net - Schedule of Prepayments and Other Current Assets, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Prepayments and Other Current Assets, Net [Abstract] | |||
Prepayments to vendors and content providers | ¥ 196,466 | ¥ 203,972 | |
Input value-added tax to be deducted | 184,061 | 82,966 | |
Interests receivable | 129,989 | 103,531 | |
Prepayment of income tax | 78,101 | 58,601 | |
Receivables from the exercise of vested share options and individual income tax paid on behalf of employees related to share-based awards | 45,217 | 13,285 | |
Loan to a third party | 12,850 | 11,350 | |
Prepayments to third-party payment platform | 8,710 | 6,093 | |
Others | 9,574 | 15,634 | |
Less: expected credit loss provision | (23) | (324) | |
Total | ¥ 664,945 | $ 104,344 | ¥ 495,108 |
Prepayments and Other Current_4
Prepayments and Other Current Assets, Net - Summary of credit loss provision related to accounts receivable (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance prior to ASC 326 | ¥ 0 | ¥ 0 | ¥ 0 |
Impact of adoption to ASC 326 | 0 | (308) | 0 |
Balance as at beginning of the year | (324) | 0 | |
Current year provision | 0 | (155) | 0 |
Current year reversal | 301 | 139 | 0 |
Balance as at end of the year | (23) | (324) | 0 |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
Balance as at beginning of the year | ¥ (324) | (308) | 0 |
Balance as at end of the year | ¥ (324) | ¥ (308) |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity investments without readily determinable fair values | [1] | ¥ 450,937 | ¥ 279,818 |
Debt investments | [2] | 157,160 | |
Equity method investments | [3] | 520 | 187,388 |
Investments | ¥ 608,617 | ¥ 467,206 | |
[1] | Equity investments without readily determinable fair values include investment in equity securities of private investee companies over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock. In 2020 and 2021, the Group acquired equity interests in a number of privately-held investee companies at with a total consideration of RMB101,964 and RMB126,958, respectively. The Group elected to apply the measurement alternative to account for these investments (see Note 2(k)). | ||
[2] | In 2021, the Group made an investment in debt securities (i.e. certain preferred shares) of a privately-held investee company at a cash consideration of RMB157,160 (“Debt Investment”). Given that the preferred stock will become redeemable simply by the the passage of time and the intention of the Group is to hold and consider a future disposal, the investment is accounted for as an available-for-sale debt investment (see Note 2(k)), wherein the investment is carried at fair value with realized or unrealized gains or losses recorded in accumulative other comprehensive income (loss). As of December 31, 2021, the fair value of the Debt Investment is not materially different from the fair value at the acquisition date. | ||
[3] | In 2018, the Group invested as one of the limited partners with significant influence in an investment fund (the “Fund”) which owns an equity interest in an online game company, which was accounted for as an equity investment. For the year ended December 31, 2021, the Group disposed of its interest (through sales to two separate parties) in the Fund with a disposal gain of RMB378,679 recognized, of which RMB360,589 was related to the transaction with an entity owned by Tencent. The total cash consideration was RMB554,889, of which RMB529,070 was related to a transaction undertaken with an entity owned by Tencent. |
Investments - Schedule of Inv_2
Investments - Schedule of Investments (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | ||
Investments [Line Items] | |||||
Consideration paid for equity method investments | ¥ 126,958 | ¥ 101,964 | |||
Disposal gain (loss) recognized | 378,679 | ||||
Debt Investment | [1] | 157,160 | |||
Cash received from a disposal of an investment | 554,889 | $ 87,074 | ¥ 0 | ||
Tencent Holdings Limited [Member] | |||||
Investments [Line Items] | |||||
Disposal gain (loss) recognized | 360,589 | ||||
Cash received from a disposal of an investment | ¥ 529,070 | ||||
[1] | In 2021, the Group made an investment in debt securities (i.e. certain preferred shares) of a privately-held investee company at a cash consideration of RMB157,160 (“Debt Investment”). Given that the preferred stock will become redeemable simply by the the passage of time and the intention of the Group is to hold and consider a future disposal, the investment is accounted for as an available-for-sale debt investment (see Note 2(k)), wherein the investment is carried at fair value with realized or unrealized gains or losses recorded in accumulative other comprehensive income (loss). As of December 31, 2021, the fair value of the Debt Investment is not materially different from the fair value at the acquisition date. |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Leasehold improvements | ¥ 34,653 | ¥ 34,244 | |
Others | 19,211 | 11,002 | |
Gross carrying amount, total | 257,946 | 232,120 | |
Less: accumulated depreciation | (178,335) | (137,565) | |
Property and equipment, net | 79,611 | $ 12,493 | 94,555 |
Servers Computers and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross carrying amount, total | ¥ 204,082 | ¥ 186,874 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | ¥ 49,875 | ¥ 58,440 | ¥ 45,455 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Group's Intangible Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Finite-Lived Intangible Assets [Line Items] | |||
Total | ¥ 193,778 | ¥ 133,422 | |
Total accumulated amortization | (109,836) | (70,626) | |
Intangible assets, net | 83,942 | $ 13,172 | 62,796 |
License [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 32,000 | 32,000 | |
Total accumulated amortization | (7,822) | (5,689) | |
Copyrights of video contents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 133,865 | 83,865 | |
Total accumulated amortization | (82,312) | (53,262) | |
Domain Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 5,283 | 5,283 | |
Total accumulated amortization | (2,445) | (2,022) | |
Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 21,498 | 11,142 | |
Total accumulated amortization | (16,125) | (8,728) | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 1,132 | 1,132 | |
Total accumulated amortization | ¥ (1,132) | ¥ (925) |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Amortization expense | ¥ 39,239 | ¥ 44,362 | ¥ 17,080 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Estimated Amortization Expenses (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2022 | ¥ 32,042 |
2023 | 22,710 |
2024 | 7,943 |
2025 | 2,768 |
2026 | ¥ 2,734 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Weighted Average Amortization Periods of Intangible Assets (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Copyrights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 3 years | 2 years |
License [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 | 4 years | 2 years |
Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 15 years | 15 years |
Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 5 years | 5 years |
Prepayments and Other Non-Cur_3
Prepayments and Other Non-Current Assets - Schedule of Prepayments and Other Non Current Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Prepayments and Other Non-Current Assets [Abstract] | ||||
Prepayments to vendors and content providers | ¥ 139,968 | ¥ 58,706 | ||
Refundable lease deposits | 8,519 | 8,173 | ||
Prepayments for purchasing of land use right | [1] | 0 | 310,220 | |
Others | 2,400 | 2,362 | ||
Total | ¥ 150,887 | $ 23,677 | ¥ 379,461 | |
[1] | In November 2020, the Company had entered into an agreement for the acquisition of land use rights for its operations and the prepayment was amounted to RMB310,220 as of December 31, 2020. In July 2021, the Company obtained the effective land use certificate and accordingly recognized the prepayment of the land use right as right of use asset. |
Prepayments and Other Non-Cur_4
Prepayments and Other Non-Current Assets - Schedule of Prepayments and Other Non Current Assets (Parenthetical) (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Prepayments And Other Non Current Assets [Abstract] | |
Prepayment for purchase of land use right | ¥ 310,220 |
Advances from customers and d_3
Advances from customers and deferred revenue (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Advances From Customers And Deferred Revenue [Abstract] | |||
Deferred revenue, current | ¥ 438,309 | ¥ 399,053 | |
Advances from customers | 21,200 | 86,825 | |
Total current advances from customers and deferred revenue | 459,509 | $ 72,107 | 485,878 |
Deferred revenue, non-current | 118,975 | 178,144 | |
Total non-current deferred revenue | ¥ 118,975 | $ 18,670 | ¥ 178,144 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accrued Liabilities and Other Current Liabilities [Abstract] | |||
Revenue sharing fees | ¥ 1,051,354 | ¥ 990,867 | |
Salaries and welfare | 231,465 | 263,310 | |
Marketing and promotion expenses | 175,357 | 152,010 | |
Bandwidth costs | 136,444 | 86,967 | |
Other taxes payable | 59,054 | 43,158 | |
License fees | 52,624 | 40,749 | |
Deposits from content providers, suppliers and advertising customers | 41,941 | 50,909 | |
Others | 97,213 | 79,319 | |
Total | ¥ 1,845,452 | $ 289,588 | ¥ 1,707,289 |
Cost of Revenues - Schedule of
Cost of Revenues - Schedule of Cost of Revenues (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cost of revenues | ¥ 9,751,160 | $ 1,530,170 | ¥ 8,646,308 | ¥ 6,892,579 |
Revenue Sharing Fees and Content Costs [Member] | ||||
Cost of revenues | 8,374,555 | 7,086,832 | 5,552,712 | |
Bandwidth Costs [Member] | ||||
Cost of revenues | 713,672 | 879,172 | 800,827 | |
Salaries and Welfare [Member] | ||||
Cost of revenues | 322,604 | 306,805 | 255,258 | |
Payment Handling Costs [Member] | ||||
Cost of revenues | 151,913 | 154,538 | 120,429 | |
Share Based Compensation [Member] | ||||
Cost of revenues | 56,629 | 64,942 | 31,593 | |
Others [Member] | ||||
Cost of revenues | ¥ 131,787 | ¥ 154,019 | ¥ 131,760 |
Other income - Additional Infor
Other income - Additional Information (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other [Member] | ||
Government grants | ¥ 191,723 | ¥ 173,382 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||||
Value added tax rate | 6.00% | 6.00% | 6.00% | |||
Income tax rate percentage | 25.00% | 25.00% | 25.00% | 25.00% | ||
Effect of different tax rates available to different jurisdictions | 0.70% | 1.60% | 3.30% | |||
Unrecognized tax benefits | ¥ 0 | ¥ 0 | ||||
High and New Technology Enterprises [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential tax rate | 15.00% | 15.00% | ||||
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 | 10.00% | |||||
Reduction in tax rate for stated period following the exemption period | 15.00% | |||||
Encouraged Industrial Enterprises [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential tax rate | 15.00% | |||||
Huya Technology Software Enterprise [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential tax rate | 12.50% | |||||
HONG KONG | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 16.50% | |||||
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% | |||||
Undistributed earnings of subsidiaries | ¥ 3,214,868 | ¥ 2,609,612 | ||||
Net tax operating losses from PRC subsidiaries | ¥ 216,634 | |||||
CHINA | Minimum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net tax operating losses expiration year | Dec. 31, 2022 | |||||
CHINA | Maximum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net tax operating losses expiration year | Dec. 31, 2026 | |||||
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] | ||||||
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% | |||||
CHINA | Encouraged Industrial Enterprises [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential tax rate | 15.00% | |||||
SINGAPORE | ||||||
Income Tax Disclosure [Line Items] | ||||||
Effect of different tax rates available to different jurisdictions | 17.00% | 17.00% | 17.00% | |||
Accumulated operating loss carryforwards not subject to expiration | ¥ 804,853 | |||||
Inland Revenue, Hong Kong [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Minimum ownership percentage to be held by foreign investors, description | 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 | |||||
PRC withholding tax rate | 5.00% | |||||
CAYMAN ISLANDS | ||||||
Income Tax Disclosure [Line Items] | ||||||
Effect of different tax rates available to different jurisdictions | 0.00% | 0.00% | 0.00% |
Taxation - Schedule of (Loss) I
Taxation - Schedule of (Loss) Income Before Income Tax Benefits (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
PRC entities | ¥ 360,160 | ¥ 994,163 | ¥ 796,062 | |
Non-PRC entities | (100,641) | 38,365 | (229,036) | |
Income before income tax expenses | ¥ 259,519 | $ 40,725 | ¥ 1,032,528 | ¥ 567,026 |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portion of Income Tax (Benefits) Expenses Included in the Consolidated Statements of Comprehensive Income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Line Items] | ||||
Deferred income tax (benefits) expenses | ¥ 32,125 | $ 5,041 | ¥ 18,608 | ¥ (14,871) |
Total income tax expenses | 55,227 | $ 8,666 | 176,784 | 96,078 |
CHINA | ||||
Income Tax Disclosure [Line Items] | ||||
Current income tax expenses | 16,046 | 142,710 | 110,408 | |
Deferred income tax (benefits) expenses | 28,119 | 18,818 | (14,871) | |
Total income tax expenses | 44,165 | 161,528 | 95,537 | |
Non PRC [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Current income tax expenses | 7,056 | 15,466 | 541 | |
Deferred income tax (benefits) expenses | 4,006 | (210) | 0 | |
Total income tax expenses | ¥ 11,062 | ¥ 15,256 | ¥ 541 |
Taxation - Schedule of Reconcil
Taxation - Schedule of Reconciliation of Total Tax Expenses Computed by Applying the Respective Statutory Income Tax Rate to Pre-Tax Income (Detail) - ¥ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
PRC Statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Effect of tax holiday and preferential tax benefits | (15.60%) | (12.30%) | (18.90%) | |
Effect of varying tax rates available in different jurisdictions | (0.70%) | (1.60%) | (3.30%) | |
Permanent differences | 19.00% | 6.10% | 6.70% | |
Change in valuation allowance | 10.70% | 4.80% | 15.80% | |
Effect of Super Deduction available to the Group | (17.10%) | (4.90%) | (8.30%) | |
Effective income tax rate | 21.30% | 17.10% | 17.00% | |
Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) | ¥ (0.11) | ¥ (0.56) | ¥ (0.42) |
Taxation - Schedule of Tax Effe
Taxation - Schedule of Tax Effects of Temporary Differences that Give Rise to Deferred Tax Asset Balances (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Tax loss carried forward | ¥ 181,860 | ¥ 142,408 | ||
Unrealized profits arising from elimination of inter-company transactions | 5,420 | 45,354 | ||
Deferred revenue | 2,435 | 2,898 | ||
Others | 1,766 | 1,084 | ||
Total deferred tax assets | 191,481 | 191,744 | ||
Less: Valuation allowance | (171,236) | (143,431) | ¥ (94,637) | ¥ (21,899) |
Total deferred tax assets | 20,245 | 48,313 | ||
Deferred tax liabilities | ||||
Unrealized gains on investments | 4,597 | 13,350 | ||
Total deferred tax liabilities | 4,597 | 13,350 | ||
Net deferred tax assets | ¥ 15,648 | ¥ 34,963 |
Taxation - Schedule of Valuatio
Taxation - Schedule of Valuation Allowance For Deferred Tax Assets (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | ¥ 143,431 | ¥ 94,637 | ¥ 21,899 |
Additions | 42,252 | 61,069 | 89,002 |
Reversals/write-off | (14,447) | (12,275) | (16,264) |
Balance at end of the year | ¥ 171,236 | ¥ 143,431 | ¥ 94,637 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) - shares | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common Class A [Member] | ||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||||
Common shares, shares issued | 86,993,764 | 83,490,841 | 67,101,314 | |
Common shares, shares outstanding | 86,993,764 | 83,490,841 | 67,101,314 | |
Stock issued during period shares stock options exercised with restricted stock award issuance | 13,600,000 | 2,222,119 | 16,389,527 | 2,061,577 |
Common Class B [Member] | ||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||||
Common shares, shares issued | 151,076,517 | 152,357,321 | 152,357,321 | |
Common shares, shares outstanding | 151,076,517 | 152,357,321 | 152,357,321 | |
Number of shares Conversion of During Period | 1,280,804 | 6,800,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Compensation Expense Recognized for Share-Based Awards Granted (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-based compensation expenses | ¥ 289,705 | ¥ 408,208 | ¥ 281,744 |
Huya 2017 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-based compensation expenses | ¥ 289,705 | 408,208 | 279,748 |
JOYY 2011 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-based compensation expenses | ¥ 0 | ¥ 1,996 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) ¥ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥)Installmentshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Jun. 10, 2021shares | Mar. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | ¥ 289,705 | ¥ 408,208 | ¥ 281,744 | |||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |||||
Share based compensation arrangement by share based payment award option Forfeitures | shares | 0 | 18,000 | 257,750 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | ¥ 289,705 | ¥ 332,509 | ¥ 176,778 | |||
Unrecognized compensation expense | ¥ 285,425 | |||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 11 months 12 days | |||||
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 months | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 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 months | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 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 months | |||||
Number of equal vesting installments | Installment | 4 | |||||
Share Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share based payment award accelerated compensation cost | ¥ 1,869 | |||||
Share based compensation arrangement by share based payment award option Forfeitures | shares | 262,503 | |||||
Employee Stock Option [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, granted | shares | 3,550,617 | 3,144,152 | 2,908,370 | |||
Non Employee Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation in general and administrative expenses | ¥ 191 | ¥ 6,746 | ||||
Non Employee Options [Member] | Restricted Stock Units (RSUs) [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 | |||
Huya 2017 Share Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | ¥ 289,705 | ¥ 408,208 | ¥ 279,748 | |||
Huya 2017 Share Incentive Plan [Member] | Grant vesting attribution Method [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | 75,699 | 102,970 | ||||
Huya 2017 Share Incentive Plan [Member] | Restricted Stock Units (RSUs) [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 | |||||
Huya 2017 Share Incentive Plan [Member] | Incentive Share Options [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 | 17,647,058 | |||||
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 | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 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 | |||||
Share-based compensation arrangement by share-based payment award, vesting rate | 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 | |||||
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 | |||||
JOYY 2011 Share Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | ¥ 0 | ¥ 1,996 | ||||
Unrecognized compensation expense | ¥ 0 | |||||
Huya 2021 Share Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |||||
Huya 2021 Share Incentive Plan [Member] | Restricted Stock Units (RSUs) [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 | 3,530,111 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Number of options, Beginning balance | 792,740 | 15,251,661 | 17,520,555 | |
Number of options, Forfeited | 0 | (18,000) | (257,750) | |
Number of options Exercised | (533,425) | (14,440,921) | (2,011,144) | |
Number of options, Ending balance | 259,315 | 792,740 | 15,251,661 | 17,520,555 |
Number of options, Expected to vest | 0 | |||
Number of options, Exercisable | 259,315 | |||
Weighted average exercise price, Beginning balance | $ 2.5500 | $ 2.5458 | $ 2.5210 | |
Weighted average exercise price, Forfeited | 0 | 2.5500 | 2.5500 | |
Weighted average exercise price Exercised | 2.5500 | 2.5456 | 2.3290 | |
Weighted average exercise price, Ending balance | 2.5500 | $ 2.5500 | $ 2.5458 | $ 2.5210 |
Weighted average exercise price, Expected to vest | 0 | |||
Weighted average exercise price, Exercisable | $ 2.5500 | |||
Weighted average remaining contractual life | 5 years 7 months 6 days | 6 years 7 months 9 days | 7 years 10 months 2 days | 8 years 9 months 25 days |
Weighted average remaining contractual life, Exercisable | 5 years 7 months 6 days | |||
Aggregate intrinsic value | $ 1,138 | $ 13,778 | $ 234,939 | $ 227,049 |
Aggregate intrinsic value, Expected to vest | 0 | |||
Aggregate intrinsic value, Exercisable | $ 1,138 |
Share-Based Compensation - Shar
Share-Based Compensation - Share Based Payment Award Stock Options Valuation Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted average fair value per option granted | $ 5.2130 |
Weighted average exercise price | $ 2.47 |
Risk-free interest rate | 2.83% |
Expected term (in year) | 10 years |
Expected volatility | 55.00% |
Dividend yield | 0.00% |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of The Restricted Share Units Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning ,Weighted | $ 17.1506 | $ 15.4350 | $ 9.0331 |
Granted | 13.9339 | 18.6180 | 22.7642 |
Forfeited | 17.9309 | 17.9943 | 14.8129 |
Vested | 16.6645 | 13.6528 | 7.1600 |
Ending ,Weighted | 15.5702 | $ 17.1506 | $ 15.4350 |
Expected to vest Weighted | $ 15.6133 | ||
Beginning, RSU | 6,644,306 | 6,279,848 | 4,107,185 |
Granted | 3,550,617 | 3,144,152 | 2,908,370 |
Forfeited | (806,435) | (603,929) | (270,707) |
Vested | (2,547,290) | (2,175,765) | (465,000) |
Ending, RSU | 6,841,198 | 6,644,306 | 6,279,848 |
Expected to vest RSU | 6,281,465 |
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 | 12 Months Ended | |||||||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |||||
Numerator: | ||||||||
Net income | ¥ 583,499 | $ 91,565 | ¥ 884,158 | ¥ 468,173 | ||||
Numerator for basic and diluted net income per share | ¥ 583,499 | $ 91,565 | ¥ 884,158 | ¥ 468,173 | ||||
Denominator: | ||||||||
Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding | 238,198,117 | 238,198,117 | 227,081,238 | 214,811,862 | ||||
—Diluted effect of share options | 497,861 | 497,861 | 8,076,339 | 14,060,031 | ||||
—Diluted effect of restricted share units | 3,094,467 | 3,094,467 | 3,474,036 | 3,153,068 | ||||
WeightedAverageNumberOfDilutedSharesOutstanding | 241,790,445 | 241,790,445 | 238,631,613 | 232,024,961 | ||||
Net income per ordinary share | ||||||||
—Basic | (per share) | ¥ 2.45 | $ 0.38 | [1] | ¥ 3.89 | [1] | ¥ 2.18 | [1] | |
—Diluted | (per share) | ¥ 2.41 | $ 0.38 | [1] | ¥ 3.71 | [1] | ¥ 2.02 | [1] | |
ADS [Member] | ||||||||
Denominator: | ||||||||
Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding | 238,198,117 | 238,198,117 | 227,081,238 | 214,811,862 | ||||
WeightedAverageNumberOfDilutedSharesOutstanding | 241,790,445 | 241,790,445 | 238,631,613 | 232,024,961 | ||||
Net income per ordinary share | ||||||||
—Basic | (per share) | [1] | ¥ 2.45 | $ 0.38 | ¥ 3.89 | ¥ 2.18 | |||
—Diluted | (per share) | [1] | ¥ 2.41 | $ 0.38 | ¥ 3.71 | ¥ 2.02 | |||
[1] | Each ADS represents one Class A ordinary share. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Dec. 31, 2021 |
Related Party Transaction [Line Items] | |
Percentage of Parent Company Voting Power | 50.00% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of the Amounts Due from/to Related Parties (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Amounts due from related parties | |||
Total | ¥ 148,560 | $ 23,312 | ¥ 64,802 |
Less: expected credit loss provision | (393) | (299) | |
Amounts due to related parties | |||
Total | 216,128 | $ 33,915 | 95,457 |
JOYY Inc [Member] | |||
Amounts due from related parties | |||
Total | 27,817 | 4,913 | |
Tencent Holdings Limited [Member] | |||
Amounts due from related parties | |||
Total | 108,686 | 59,832 | |
Amounts due to related parties | |||
Total | 177,452 | 85,304 | |
Other Related Party [Member] | |||
Amounts due from related parties | |||
Total | 12,450 | 356 | |
Amounts due to related parties | |||
Total | ¥ 38,676 | ¥ 10,153 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Significant Related Party Transactions (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Related Party Transaction [Line Items] | ||||
Disposal gain of an investment | ¥ 378,679 | |||
JOYY Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operation support services provided by Tencent | 2,543 | ¥ 4,187 | ¥ 17,455 | |
Purchase of services by JOYY on behalf of Huya | 268 | 18,945 | 22,622 | |
Cash collected by JOYY as a payment platform for Huya | 1,362,489 | |||
Repayment from JOYY in relation to the payment on behalf of Huya's employees | 15,306 | |||
Others | 1,054 | 12,637 | ||
Tencent Holdings Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Content costs charged by Tencent | [1] | 485,988 | 127,224 | 123,204 |
Operation support services provided by Tencent | 370,393 | 342,487 | 219,403 | |
Disposal gain of an investment | 360,589 | |||
Sub-licensing and other revenues from Tencent | 80,302 | 14,349 | 8,028 | |
Others | 14,617 | 30,540 | ¥ 31,739 | |
Tencent and Huya's Related Parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Sub-licensing and other revenues from Tencent and Huya's related parties | 188,209 | 8,197 | ||
Content costs and revenue sharing fees charged by Tencent and Huya's related parties | 102,311 | 85,361 | ||
Others | ¥ 21,013 | ¥ 34,044 | ||
[1] | In April 2021, the Company entered into a related party transaction with a fellow subsidiary of Tencent to purchase an exclusive license for broadcasting League of Legends matches during the period from 2021 to 2025, with a total consideration of RMB2,013 million. |
Related Party Transactions - _3
Related Party Transactions - Schedule of Significant Related Party Transactions (Parenthetical) (Detail) ¥ in Millions | 1 Months Ended |
Apr. 30, 2021CNY (¥) | |
Parent Company [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Purchases from Related Party | ¥ 2,013 |
Related Party Transaction - Sch
Related Party Transaction - Schedule of Expected Allowance for Credit Loss Provision Related to Amounts Due from Related Parties (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expected Credit Loss Provision Related To Amounts Due From to Related Parties [Abstract] | ||
Impact of adoption to ASC 326 | ¥ (203) | |
Balance at beginning of the year | (299) | (203) |
Current year provision | (387) | (180) |
Current year reversal | 293 | 84 |
Balance at end of the year | ¥ (393) | ¥ (299) |
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 | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Assets | ||||
Short-term investments | ¥ 816,331 | $ 128,100 | ¥ 1,206,539 | |
Available-for-sale debt security | [1] | 157,160 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [2] | 816,331 | 1,206,539 | |
Cash equivalents | [3] | 401,291 | 401,269 | |
Available-for-sale debt security | [4] | 157,160 | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [2] | 0 | 0 | |
Cash equivalents | [3] | 401,291 | 401,269 | |
Available-for-sale debt security | [4] | 0 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [2] | 816,331 | 1,206,539 | |
Cash equivalents | [3] | 0 | 0 | |
Available-for-sale debt security | [4] | 0 | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Short-term investments | [2] | 0 | 0 | |
Cash equivalents | [3] | 0 | ¥ 0 | |
Available-for-sale debt security | [4] | ¥ 157,160 | ||
[1] | In 2021, the Group made an investment in debt securities (i.e. certain preferred shares) of a privately-held investee company at a cash consideration of RMB157,160 (“Debt Investment”). Given that the preferred stock will become redeemable simply by the the passage of time and the intention of the Group is to hold and consider a future disposal, the investment is accounted for as an available-for-sale debt investment (see Note 2(k)), wherein the investment is carried at fair value with realized or unrealized gains or losses recorded in accumulative other comprehensive income (loss). As of December 31, 2021, the fair value of the Debt Investment is not materially different from the fair value at the acquisition date. | |||
[2] | 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 values are 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. | |||
[3] | Cash equivalents mainly consist of time deposits with original maturities of three months or less and highly liquid investments that are readily convertible to known amounts of cash. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Company classifies the valuation techniques that use the pervasive interest rates input as Level 1 of fair value measurements. | |||
[4] | Available-for-sale debt investments were investments made by the Group without readily determinable fair values as set out in Note [10], which were categorized as Level 3 in the fair value hierarchy. These investments were valued based on a model utilizing unobservable inputs requiring significant management judgment and estimation. The Company uses a combination of valuation methodologies, including income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees, future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Gain on fair value changes of investment | ¥ 44,161 | ¥ 2,160 | ¥ 0 |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease expense | ¥ 40,001 | ¥ 32,781 | ¥ 30,540 |
Short-term lease expense | 16,438 | 17,113 | 19,149 |
Total lease expense | ¥ 56,439 | ¥ 49,894 | ¥ 49,689 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Weighted-average remaining lease term (in years) – operating leases | 2 years 7 months 6 days | ||
Weighted-average discount rate – operating leases | 4.80% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Jan. 01, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | ¥ 37,485 | |
2023 | 34,510 | |
2024 | 10,100 | |
2025 | 4,593 | |
2026 and thereafter | 0 | |
Total undiscounted cash flows | 86,688 | |
Less: imputed interest | (5,131) | |
Total | ¥ 81,557 | ¥ 91,654 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease, Liability (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Lease Payments [Abstract] | |||
Cash paid for operating leases | ¥ 43,024 | ¥ 33,028 | ¥ 28,847 |
Lease liabilities arising from obtaining right-of-use assets: | ¥ 26,077 | ¥ 21,024 | ¥ 33,399 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ¥ in Millions | Dec. 31, 2021CNY (¥) |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate Purchase Price | ¥ 2,013 |
Purchase Obligation, to be Paid | ¥ 1,640 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | ¥ 8,033 |
2023 | 4,999 |
2024 | 1,127 |
2025 and thereafter | 225 |
Future minimum payments operating leases | ¥ 14,384 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Capital And Other Commitments (Detail) ¥ in Thousands | Dec. 31, 2021CNY (¥) |
Capital And Other Commitments [Abstract] | |
Construction in progress | ¥ 59,612 |
Investments | 30,000 |
Capital expenditures contracted | ¥ 89,612 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||
Payments to Acquire Equity Method Investments | ¥ 126,958 | ¥ 101,964 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Unrealized gain on investments | ¥ 100,000 | ||
Subsequent Event [Member] | Investments [Member] | |||
Subsequent Event [Line Items] | |||
Payments to Acquire Equity Method Investments | ¥ 96 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | ||
Percentage of after-tax income required to be transferred to statutory general reserve fund | 10.00% | |
Reserve level threshold for mandatory appropriation requirement (as a percent) | 50.00% | |
Restricted net assets | ¥ (763,460) | ¥ 1,588,135 |