Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | JG |
Entity Registrant Name | Aurora Mobile Ltd |
Entity Central Index Key | 0001737339 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Class A Common Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 59,547,823 |
Class B Common Shares | |
Document And Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 17,000,189 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 576,562 | $ 83,857 | ¥ 208,161 |
Restricted cash | 115 | 17 | 115 |
Accounts receivable, net of allowances of RMB3,462 and RMB9,308 (US$1,354) as of December 31, 2017 and 2018, respectively | 141,911 | 20,640 | 49,594 |
Prepayments and other current assets | 80,578 | 11,719 | 34,228 |
Amounts due from related parties | 4,564 | 664 | 1,260 |
Total current assets | 803,730 | 116,897 | 293,358 |
Non-current assets: | |||
Property and equipment, net | 92,874 | 13,508 | 53,023 |
Intangible assets, net | 1,531 | 223 | 283 |
Long-term investments | 79,696 | 11,591 | 10,980 |
Other non-current assets | 14,237 | 2,071 | 1,806 |
Total non-current assets | 188,338 | 27,393 | 66,092 |
Total assets | 992,068 | 144,290 | 359,450 |
Current liabilities: | |||
Accounts payable (including accounts payable of the variable interest entity (“VIE”) without recourse to the Company of RMB8,340 and RMB18,683 (US$2,717) as of December 31, 2017 and 2018, respectively) | 18,811 | 2,736 | 8,340 |
Deferred revenue and customer deposits (including deferred revenue and customer deposits of the VIE without recourse to the Company of RMB48,085 and RMB55,625 (US$8,091) as of December 31, 2017 and 2018, respectively) | 59,483 | 8,651 | 49,557 |
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the VIE without recourse to the Company of RMB31,631 and RMB59,556 (US$8,662) as of December 31, 2017 and 2018, respectively) | 76,666 | 11,151 | 52,639 |
Amounts due to related parties (including amount due to related parties of the VIE without recourse to the Company of RMB459 and RMB8,864 (USD$1,289) as of December 31, 2017 and 2018, respectively) | 8,864 | 1,289 | 6,110 |
Total current liabilities | 163,824 | 23,827 | 116,646 |
Non-current liabilities: | |||
Other non-current liabilities (including other non-current liabilities of the VIE without recourse to the Company of RMB216 and RMB140 (US$20) as of December 31, 2017 and 2018, respectively) | 140 | 20 | 216 |
Deferred tax liabilities (including deferred tax liabilities of the VIE without recourse to the Company of RMB5 and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | 5 | ||
Deferred revenue (including deferred revenue of the VIE without recourse to the Company of RMB330 and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | 10,265 | 1,493 | 330 |
Convertible notes (including deferred revenue of the VIE without recourse to the Company of RMB nil and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | 216,179 | 31,442 | 0 |
Total non-current liabilities | 226,584 | 32,955 | 551 |
Total liabilities | 390,408 | 56,782 | 117,197 |
Commitments and contingencies | |||
Mezzanine equity | |||
Total mezzanine equity | 466,637 | ||
Shareholders’ (deficit) equity | |||
Common shares | 26 | ||
Treasury shares (nil and 46,303 class A common shares as of December 31, 2017 and 2018, respectively) | (3,165) | (460) | |
Additional paid-in capital | 944,500 | 137,372 | 13,689 |
Accumulated deficit | (348,123) | (50,632) | (234,810) |
Accumulated other comprehensive loss | 8,400 | 1,221 | (3,289) |
Total shareholders’ (deficit) equity | 601,660 | 87,508 | (224,384) |
Total liabilities, mezzanine equity and shareholders’ deficit | 992,068 | 144,290 | 359,450 |
Series A Contingently Redeemable Convertible Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 26,979 | ||
Series B Contingently Redeemable Convertible Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 52,723 | ||
Series C Contingently Redeemable Convertible Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | 168,317 | ||
Series D Contingently Redeemable Convertible Preferred Shares | |||
Mezzanine equity | |||
Total mezzanine equity | ¥ 218,618 | ||
Class A Common Shares | |||
Shareholders’ (deficit) equity | |||
Common shares | 37 | 5 | |
Class B Common Shares | |||
Shareholders’ (deficit) equity | |||
Common shares | ¥ 11 | $ 2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares |
Accounts receivable, net of allowances | ¥ 9,308 | $ 1,354 | ¥ 3,462 |
Accounts payable | 18,811 | 2,736 | 8,340 |
Deferred revenue and customer deposits | 33,067 | 4,809 | 28,921 |
Accrued liabilities and other current liabilities | 76,666 | 11,151 | 52,639 |
Amount due to related parties | 8,864 | 1,289 | 6,110 |
Other non-current liabilities | 140 | 20 | 216 |
Deferred tax liabilities | ¥ | 5 | ||
Deferred revenue | 10,265 | 1,493 | 330 |
Convertible notes (including deferred revenue of the VIE without recourse to the Company of RMB nil and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | ¥ 216,179 | $ 31,442 | ¥ 0 |
Common shares, par value per share | $ / shares | $ 0 | ||
Common shares, shares authorized | 50,000,000 | 50,000,000 | 470,393,343 |
Common shares, shares issued | 0 | 0 | 42,666,670 |
Common shares, shares outstanding | 0 | 0 | 42,666,670 |
Series A Contingently Redeemable Convertible Preferred Shares | |||
Contingently redeemable convertible preferred shares, par value per share | $ / shares | $ 0 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 0 | 11,111,120 |
Contingently redeemable convertible preferred shares, shares issued | 0 | 0 | 11,111,120 |
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 0 | 11,111,120 |
Series B Contingently Redeemable Convertible Preferred Shares | |||
Contingently redeemable convertible preferred shares, par value per share | $ / shares | $ 0 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 0 | 7,936,510 |
Contingently redeemable convertible preferred shares, shares issued | 0 | 0 | 7,936,510 |
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 0 | 7,936,510 |
Series C Contingently Redeemable Convertible Preferred Shares | |||
Contingently redeemable convertible preferred shares, par value per share | $ / shares | $ 0 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 0 | 4,999,540 |
Contingently redeemable convertible preferred shares, shares issued | 0 | 0 | 4,999,540 |
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 0 | 4,999,540 |
Series D Contingently Redeemable Convertible Preferred Shares | |||
Contingently redeemable convertible preferred shares, par value per share | $ / shares | $ 0 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 0 | 5,559,487 |
Contingently redeemable convertible preferred shares, shares issued | 0 | 0 | 5,559,487 |
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 0 | 5,559,487 |
Class A Common Shares | |||
Common shares, par value per share | $ / shares | $ 0.0001 | ||
Common shares, shares authorized | 4,920,000,000 | 4,920,000,000 | 0 |
Common shares, shares issued | 59,547,823 | 59,547,823 | 0 |
Common shares, shares outstanding | 59,547,823 | 59,547,823 | 0 |
Class B Common Shares | |||
Common shares, par value per share | $ / shares | $ 0.0001 | ||
Common shares, shares authorized | 30,000,000 | 30,000,000 | 0 |
Common shares, shares issued | 17,000,189 | 17,000,189 | 0 |
Common shares, shares outstanding | 17,000,189 | 17,000,189 | 0 |
VIE | |||
Accounts payable | ¥ 18,683 | $ 2,717 | ¥ 8,340 |
Deferred revenue and customer deposits | 55,625 | 8,091 | 48,085 |
Accrued liabilities and other current liabilities | 59,556 | 8,662 | 31,631 |
Amount due to related parties | 8,864 | 1,289 | 459 |
Other non-current liabilities | 140 | 20 | 216 |
Deferred tax liabilities | 0 | 0 | 5 |
Deferred revenue | 0 | 0 | 330 |
Convertible notes (including deferred revenue of the VIE without recourse to the Company of RMB nil and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | ¥ 0 | $ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Revenues (including related party amounts of RMB3,507 and RMB2,543 (US$370) for the years ended December 31, 2017 and 2018, respectively) | ¥ 714,141 | $ 103,868 | ¥ 284,709 | ¥ 70,322 |
Cost of revenues (including related party amounts of RMB788 and RMB19,763 (US$2,874) for the years ended December 31, 2017 and 2018, respectively) | (517,074) | (75,205) | (213,370) | (47,722) |
Gross profit | 197,067 | 28,663 | 71,339 | 22,600 |
Operating expenses | ||||
Research and development (including related party amounts of RMB762 and RMB200 (US$29) for the years ended December 31, 2017 and 2018, respectively) | (134,358) | (19,542) | (71,651) | (33,717) |
Sales and marketing (including related party amounts of RMB541 and RMB178 (US$26) for the years ended December 31, 2017 and 2018, respectively) | (83,853) | (12,196) | (59,673) | (33,062) |
General and administrative (including related party amounts of RMB138 and RMB59 (US$9) for the years ended December 31, 2017 and 2018, respectively) | (71,641) | (10,419) | (32,431) | (13,480) |
Total operating expenses | (289,852) | (42,157) | (163,755) | (80,259) |
Loss from operations | (92,785) | (13,494) | (92,416) | (57,659) |
Foreign exchange (loss)/ gain, net | 264 | 38 | (2,724) | (328) |
Interest income | 3,657 | 532 | 314 | 283 |
Interest expense | (7,054) | (1,026) | (122) | |
Other income | 8,449 | 1,229 | 677 | 232 |
Change in fair value of derivative liability | 21,302 | 3,098 | ||
Loss before income taxes | (66,167) | (9,623) | (94,271) | (57,472) |
Income tax (expense) benefit | (30) | (4) | 3,980 | (3,910) |
Net loss | (66,197) | (9,627) | (90,291) | (61,382) |
Net loss attributable to Aurora Mobile Limited’s shareholders | (66,197) | (9,627) | (90,291) | (61,382) |
Accretion of contingently redeemable convertible preferred shares | (24,094) | (3,504) | (26,391) | (12,427) |
Net loss attributable to common shareholders | (90,291) | (13,131) | ¥ (116,682) | ¥ (73,809) |
Net loss per share for class A and class B common shares: | ||||
Common shares - basic and diluted | ¥ / shares | ¥ (2.73) | ¥ (1.73) | ||
Shares used in net loss per share computation: | ||||
Common shares - basic and diluted | 42,666,670 | 42,666,670 | ||
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 11,688 | 1,700 | ¥ (7,563) | ¥ 1,896 |
Total other comprehensive income (loss), net of tax | 11,688 | 1,700 | (7,563) | 1,896 |
Total comprehensive loss | (54,509) | (7,927) | (97,854) | (59,486) |
Comprehensive loss attributable to Aurora Mobile Limited | (54,509) | (7,927) | ¥ (97,854) | ¥ (59,486) |
Class A Common Shares | ||||
Operating expenses | ||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (46,606) | (6,779) | ||
Accretion of contingently redeemable convertible preferred shares | (16,963) | (2,467) | ||
Net loss attributable to common shareholders | ¥ (63,569) | $ (9,246) | ||
Net loss per share for class A and class B common shares: | ||||
Common shares - basic and diluted | (per share) | ¥ (1.57) | $ (0.23) | ||
Shares used in net loss per share computation: | ||||
Common shares - basic and diluted | 40,441,999 | 40,441,999 | ||
Class B Common Shares | ||||
Operating expenses | ||||
Net loss attributable to Aurora Mobile Limited’s shareholders | ¥ (19,591) | $ (2,848) | ||
Accretion of contingently redeemable convertible preferred shares | (7,131) | (1,037) | ||
Net loss attributable to common shareholders | ¥ (26,722) | $ (3,885) | ||
Net loss per share for class A and class B common shares: | ||||
Common shares - basic and diluted | (per share) | ¥ (1.57) | $ (0.23) | ||
Shares used in net loss per share computation: | ||||
Common shares - basic and diluted | 17,000,189 | 17,000,189 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Revenues - related parties | ¥ 2,543 | $ 370 | ¥ 3,507 |
Cost of revenues - related party | 19,763 | 2,874 | 788 |
Research and development - related party | 200 | 29 | 762 |
Sales and Marketing - related party | 178 | 26 | 541 |
General and administrative - related party | ¥ 59 | $ 9 | ¥ 138 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common StockCNY (¥)shares | Common StockUSD ($)shares | Treasury StockCNY (¥) | Treasury StockUSD ($) | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUSD ($) | Accumulated Other Comprehensive IncomeCNY (¥) | Accumulated Other Comprehensive IncomeUSD ($) | Accumulated DeficitCNY (¥) | Accumulated DeficitUSD ($) |
Balance at Dec. 31, 2015 | ¥ (40,204) | ¥ 26 | ¥ 1,711 | ¥ 2,378 | ¥ (44,319) | |||||||
Balance, Shares at Dec. 31, 2015 | shares | 42,666,670 | 42,666,670 | ||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (61,382) | (61,382) | ||||||||||
Other comprehensive loss | 1,896 | 1,896 | ||||||||||
Contribution from shareholder | 1,000 | 1,000 | ||||||||||
Accretion of contingently redeemable convertible preferred shares | (12,427) | (12,427) | ||||||||||
Share-based compensation | 2,703 | 2,703 | ||||||||||
Balance at Dec. 31, 2016 | (108,414) | ¥ 26 | 5,414 | 4,274 | (118,128) | |||||||
Balance, Shares at Dec. 31, 2016 | shares | 42,666,670 | 42,666,670 | ||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (90,291) | (90,291) | ||||||||||
Other comprehensive loss | (7,563) | (7,563) | ||||||||||
Accretion of contingently redeemable convertible preferred shares | (26,391) | (26,391) | ||||||||||
Share-based compensation | 8,275 | 8,275 | ||||||||||
Balance at Dec. 31, 2017 | (224,384) | ¥ 26 | 13,689 | (3,289) | (234,810) | |||||||
Balance, Shares at Dec. 31, 2017 | shares | 42,666,670 | 42,666,670 | ||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (66,197) | $ (9,627) | (66,197) | |||||||||
Other comprehensive loss | 11,689 | 11,689 | ||||||||||
Issuance of Class A common shares in connection with initial public offering | 464,380 | ¥ 4 | 464,376 | |||||||||
Issuance of Class A common shares in connection with initial public offering, Shares | shares | 6,059,708 | 6,059,708 | ||||||||||
Conversion of all outstanding contingently redeemable convertible preferred shares to Class A common shares | 401,691 | ¥ 18 | 357,222 | 44,451 | ||||||||
Conversion of all outstanding contingently redeemable convertible preferred shares to Class A common shares, Shares | shares | 27,867,937 | 27,867,937 | ||||||||||
Redemption of contingently redeemable convertible preferred shares | (6,915) | (6,915) | ||||||||||
Accretion of contingently redeemable convertible preferred shares | 84,652 | (84,652) | ||||||||||
Repurchased shares | (3,165) | ¥ (3,165) | ||||||||||
Repurchased shares, Shares | shares | (46,303) | (46,303) | ||||||||||
Share-based compensation | 24,561 | 24,561 | ||||||||||
Balance at Dec. 31, 2018 | ¥ 601,660 | $ 87,508 | ¥ 48 | $ 7 | ¥ (3,165) | $ (460) | ¥ 944,500 | $ 137,372 | ¥ 8,400 | $ 1,222 | ¥ (348,123) | $ (50,632) |
Balance, Shares at Dec. 31, 2018 | shares | 76,548,012 | 76,548,012 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (66,197) | $ (9,627) | ¥ (90,291) | ¥ (61,382) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation of property and equipment | 18,084 | 2,630 | 8,805 | 3,433 |
Amortization of intangible assets | 307 | 45 | 35 | 0 |
Unrealized exchange (gain) loss | 11,689 | 1,700 | 339 | (369) |
Allowance for doubtful accounts | 5,846 | 850 | 2,427 | 1,049 |
Deferred tax expense (benefit) | (5) | (1) | (3,980) | 3,910 |
Share-based compensation | 24,561 | 3,572 | 8,275 | 2,703 |
Changes in operating assets and liabilities, | ||||
Accounts receivable | (98,163) | (14,278) | (48,266) | (5,870) |
Prepayments and other current assets | (46,350) | (6,741) | (21,558) | (11,233) |
Amounts due from related parties | (3,303) | (480) | (1,169) | (65) |
Other non-current assets | (1,431) | (208) | (492) | |
Accounts payable | 10,471 | 1,523 | 13,015 | 822 |
Deferred revenue and customer deposits | 19,861 | 2,889 | 31,144 | 11,018 |
Accrued liabilities and other current liabilities | 24,027 | 3,495 | 26,503 | 14,469 |
Amounts due to related parties | 2,754 | 401 | (243) | 676 |
Change in deferred tax liabilities | (5) | (1) | ||
Other non-current liabilities | (76) | (11) | (76) | (1,313) |
Net cash used in operating activities | (97,925) | (14,241) | (75,532) | (42,152) |
Cash flows from investing activities: | ||||
Purchase of time deposits | (10,000) | |||
Proceeds from maturity of time deposits | 10,053 | |||
Increase in long-term prepayment | (11,000) | (1,600) | ||
Purchase of long-term investment | (68,716) | (9,994) | (10,000) | (1,041) |
Purchase of property and equipment | (57,934) | (8,426) | (28,378) | (18,887) |
Purchase of intangible assets | (1,556) | (226) | (319) | |
Net cash used in investing activities | (139,206) | (20,246) | (28,644) | (29,928) |
Cash flows from financing activities: | ||||
Proceeds from issuance of contingently redeemable convertible preferred shares, net of issuance cost | 216,179 | 31,442 | 217,446 | 134,348 |
Proceeds from initial public offering, net of issuance cost | 464,380 | 67,541 | ||
Redemption of contingently redeemable convertible preferred shares | (62,510) | (9,092) | ||
Repurchase of ordinary shares | (3,165) | (460) | ||
Contribution from shareholder | 1,000 | |||
Net cash provided by financing activities | 614,884 | 89,431 | 217,446 | 135,348 |
Effect of exchange rate on cash and cash equivalents and restricted cash | (9,352) | (1,362) | (8,282) | 2,450 |
Net increase in cash and cash equivalents and restricted cash | 368,401 | 53,582 | 104,988 | 65,718 |
Cash, cash equivalents and restricted cash at the beginning of year | 208,276 | 30,292 | 103,288 | 37,570 |
Cash and cash equivalents at the beginning of the year | 208,161 | 30,276 | 103,168 | 37,570 |
Restricted cash at the beginning of the year | 115 | 17 | 120 | |
Cash, cash equivalents and restricted cash at the end of year | 576,677 | 83,874 | 208,276 | 103,288 |
Cash and cash equivalents at the end of the year | 576,562 | 83,857 | 208,161 | 103,168 |
Restricted cash at the end of the year | 115 | 17 | 115 | ¥ 120 |
Supplemental disclosures of cash flow information: | ||||
Interest expense paid | 122 | |||
Purchase of property and equipment included in accrued liabilities and other current liabilities | ¥ 104 | $ 15 | ¥ 9,731 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1 Aurora Mobile Limited (the “Company” and where appropriate, the term “Company” also refers to its subsidiaries and variable interest entity) is a limited company incorporated in the Cayman Islands under the laws of the Cayman Islands on April 9, 2014. The Company, through its subsidiaries and variable interest entity (“VIE”), are principally engaged in providing data solutions which include targeted marketing, industry insights, financial risk management and location-based intelligence services in the People’s Republic of China (the “PRC”). As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its business, primarily through the VIE. The Company, through JPush Information Consulting (Shenzhen) Co., Ltd. (“Shenzhen JPush” or “WFOE”) entered into powers of attorney and an exclusive option agreement with the nominee shareholders of the VIE, that gave WFOE the power to direct the activities that most significantly affect the economic performance of the VIE and to acquire the equity interests in the VIE when permitted by the PRC laws, respectively. In addition, pursuant to the supplementary agreements signed in March, 2018, the rights under the aforementioned power of attorney and the exclusive call option agreements were assigned to the board of directors of the Company (the “Board”) or any officer authorized by the Board, which entitled the Company to receive economic benefits from the VIE that potentially could be significant to the VIE. Despite the lack of technical majority ownership, the Company has effective control of the VIE through a series of VIE agreements and a parent-subsidiary relationship exists between the Company and the VIE. Through the VIE agreements and the supplementary agreements, the shareholders of the VIE effectively assigned all of their voting rights underlying their equity in the VIE to the Company. In addition, through the exclusive business operation agreement, the Company, through its WFOE in the PRC, have the right to receive economic benefits from the VIE that potentially could be significant to the VIE. Lastly, through the financial support agreement and the shareholder voting proxy agreement, the Company has the obligation to absorb losses of the VIE that could potentially be significant to the VIE. Therefore, the Company is considered the primary beneficiary of the VIE and consolidates the VIE as required by SEC Regulation S-X Rule 3A-02 and Accounting Standards Codification (“ASC”) 810. The following is a summary of the VIE agreements: Exclusive Option Agreements Pursuant to the exclusive option agreements entered into between VIE’s nominee shareholders and the WFOE, the nominee shareholders irrevocably granted the WFOE an option to request the nominee shareholders to transfer or sell any part or all of its equity interests in the VIE, or any or all of the assets of the VIE, to the WFOE, or their designees. The purchase price of the equity interests in the VIE is equal to the minimum price required by PRC law. Without the WFOE’s prior written consent, the VIE and its nominee shareholders cannot amend its articles of association, increase or decrease the registered capital, sell or otherwise dispose of its assets or beneficial interest, create or allow any encumbrance on its assets or other beneficial interests and provide any loans or guarantees. The nominee shareholders cannot request any dividends or other form of assets. If dividends or other form of assets were distributed, the nominee shareholders are required to transfer all received distribution to the WFOE or their designees. These agreements are not terminated until all of the equity interest of the VIE is transferred to the WFOE or the person(s) designated by the WFOE. None of the nominee shareholders have the right to terminate or revoke the agreements under any circumstance unless otherwise regulated by law. Equity Interest Pledge Agreements Pursuant to the equity interest pledge agreements, each nominee shareholder of the VIE has pledged all of their respective equity interests in the VIE to WFOE as continuing first priority security interest to guarantee the performance of their and the VIE’s obligations under the powers of attorney agreement, the exclusive option agreement and the exclusive business cooperation agreement. WFOE is entitled to all dividends during the effective period of the share pledge except as it agrees otherwise in writing. If VIE or any of the nominee shareholder breaches its contractual obligations, WFOE will be entitled to certain rights regarding the pledged equity interests, including receiving proceeds from the auction or sale of all or part of the pledged equity interests of VIE in accordance with PRC law. None of the nominee shareholders shall, without the prior written consent of WFOE, assign or transfer to any third party, distribute dividends and create or cause any security interest and any liability in whatsoever form to be created on, all or any part of the equity interests it holds in the VIE. This agreement is not terminated until all of the technical support and consulting and service fees have been fully paid under the exclusive business cooperation agreement and all of VIE’s obligations have been terminated under the other controlling agreements. On December 16, 2014, the Company registered the equity pledge with the relevant office of the administration for industry and commerce in accordance with the PRC Property Rights Law. 1 Exclusive Business Cooperation Agreement Pursuant to the exclusive business cooperation agreement entered into by WFOE and VIE, WFOE provides exclusive technical support and consulting services in return for an annual service fee based on a certain percentage of the VIE’s audited total operating income, which is adjustable at the sole discretion of WFOE. Without WFOE’s consent, the VIE cannot procure services from any third party or enter into similar service arrangements with any other third party, except for those from WFOE. In addition, the profitable consolidated VIE has granted WFOE an exclusive right to purchase any or all of the business or assets of each of the profitable consolidated VIE at the lowest price permitted under PRC law. This agreement is irrevocable or can only be unilaterally revoked/amended by WFOE. Powers of Attorney Pursuant to the powers of attorney signed between VIE’s nominee shareholders and WFOE, each nominee shareholder irrevocably appointed WFOE as its attorney-in-fact to exercise on each shareholder’s behalf any and all rights that each shareholder has in respect of its equity interest in VIE (including but not limited to executing the exclusive right to purchase agreements, the voting rights and the right to appoint directors and executive officers of VIE). This agreement is effective and irrevocable as long as the nominee shareholder remains a shareholder of VIE. In March 2018, the following supplementary agreements were entered into: Financial Support Agreement Pursuant to the financial support undertaking letter dated March 28, 2018, the Company is obligated to provide unlimited financial support to the VIE, to the extent permissible under the applicable PRC laws and regulations. The Company will not request repayment of the loans or borrowings if the VIE or its shareholders do not have sufficient funds or are unable to repay. Shareholder Voting Proxy Agreement The Nominee Shareholders also re-signed the powers of attorney agreement whereby they granted an irrevocable proxy of the voting rights underlying their respective equity interests in VIE from the WFOE to the Company, which includes, but are not limited to, all the shareholders’ rights and voting rights empowered to the Nominee Shareholders by the company law and the Company’s Article of Association. Accordingly, as a result of the power to direct the activities of the VIE pursuant to the powers of attorney agreement and the obligation to absorb the expected losses of VIE through the unlimited financial support, the WFOE ceased to be the primary beneficiary and the Company became the primary beneficiary of the VIE on March 28, 2018. In the opinion of the Company’s legal counsel, (i) the ownership structure of the PRC subsidiary and the VIE are in compliance with the existing PRC laws and regulations; (ii) each of the VIE agreements is valid, binding and enforceable in accordance with its terms and applicable PRC laws or regulations and will not violate applicable PRC laws or regulations in effect; and (iii) are valid in accordance with the articles of association of the Company. However, uncertainties in the PRC legal system could cause the Company’s current ownership structure to be found in violation of existing and/or future PRC laws or regulations and could limit the Company’s ability to enforce its rights under these contractual arrangements. Furthermore, the nominee shareholders of the VIE may have interests that are different than those of the Company, which could potentially increase the risk that they would seek to act contrary to the terms of the contractual agreements with the VIE. In addition, if the current structure or any of the contractual arrangements is found to be in violation of any existing or future PRC laws or regulations, the Company could be subject to penalties, which could include, but not be limited to, revocation of business and operating licenses, discontinuing or restricting business operations, restricting the Company’s right to collect revenues, temporary or permanent blocking of the Company’s internet platforms, restructuring of the Company’s operations, imposition of additional conditions or requirements with which the Company may not be able to comply, or other regulatory or enforcement actions against the Company that could be harmful to its business. The imposition of any of these or other penalties could have a material adverse effect on the Company’s ability to conduct its business. 1 The following table set forth the assets and liabilities of the VIE included in the Company’s consolidated balance sheets: As of December 31, 2017 2018 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 49,853 31,763 4,620 Restricted cash 115 115 17 Accounts receivable 49,561 141,705 20,609 Prepayments and other current assets 29,637 64,532 9,386 Amounts due from the Company and its subsidiaries 3,806 3,965 577 Amounts due from related parities 1,186 2,848 414 Total current assets 134,158 244,928 35,623 Non-current assets: Long-term investments 10,000 71,512 10,401 Other receivables-non current 1,354 2,529 368 Property and equipment, net 24,258 46,271 6,730 Intangible assets, net 283 1,406 204 Long-term prepayment — 11,000 1,600 Total non-current assets 35,895 132,718 19,303 Total assets 170,053 377,646 54,926 LIABILITIES: Current liabilities: Accounts payable 8,340 18,683 2,717 Deferred revenue and customer deposits 48,085 55,625 8,091 Accrued liabilities and other current liabilities 31,631 59,556 8,662 Amounts due to the Company and its subsidiaries 39,861 15,534 2,259 Amounts due to related parties 459 8,864 1,289 Total current liabilities 128,376 158,262 23,018 Non-current liabilities: Amounts due to the Company and its subsidiaries 60,000 240,000 34,907 Other non-current liabilities 216 140 20 Deferred tax liabilities 5 — — Deferred revenue and customer deposits 330 — — Total non-current liabilities 60,551 240,140 34,927 Total liabilities 188,927 398,402 57,945 1 The table sets forth the results of operations and cash flows of the VIE included in the company’s consolidated statements of comprehensive loss and cash flows. As of December 31, 2016 2017 2018 RMB RMB RMB US$ Revenues 70,148 284,348 709,594 103,206 Cost of revenues (47,559 ) (206,789 ) (499,589 ) (72,662 ) Net income/(loss) 18,681 (40,003 ) (16,785 ) (2,441 ) Net cash used in operating activities 7,590 (51,016 ) (68,316 ) (9,936 ) Net cash used in investing activities — (10,000 ) (104,675 ) (15,224 ) Net cash provided by financing activities 1,000 — 154,901 22,529 There were no pledges or collateralization of the VIE’s assets as of December 31, 2017 and 2018. The amount of net liabilities of the VIE was RMB 18,874 and RMB 20,756 (US$3,019) as of December 31, 2017 and 2018, respectively. Creditors of the VIE have no recourse to the general credit of the primary beneficiary of the VIE, and such amounts have been parenthetically presented on the face of the consolidated balance sheets. The VIE holds certain assets, including data servers and related equipment for use in their operations. The VIE does not own any facilities except for the rental of certain office premises and data centers from third parties under operating lease arrangements. The VIE also holds certain value-added technology licenses, registered copyrights, trademarks and registered domain names, including the official website, which are also considered as revenue-producing assets. However, none of such assets was recorded on the Company’s consolidated balance sheets as such assets were all internally developed and expensed as incurred as they did not meet the capitalization criteria. The Company has not provided any financial or other support that it was not previously contractually required to provide to the VIE during the periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2 Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with the generally accepted accounting principles of the United States (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIE. All significant intercompany transactions and balances have been eliminated upon consolidation. Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments that management make about the carrying values of assets and liabilities, which are not readily apparent from other sources. Management base their estimates and judgments on historical information and on various other assumptions that they believe are reasonable under the circumstances. U.S. GAAP requires management to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, collectability of accounts receivable, commitments, convertible notes, useful lives and impairment assessment of intangible assets, property and equipment, long-term investment, income taxes, valuation allowance for deferred tax assets, fair value change of derivative liability, and share-based compensation. These estimates are based on management's knowledge about current events and expectations about actions that the Company may undertake in the future. Actual results could differ from those estimates. 2 Summary of Significant Accounting Policies (continued) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader have been calculated at the exchange rate of RMB6.8755 per US$1.00 on December 31, 2018, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. Foreign currency translation The functional currency of the Company Foreign Currency Matters Transactions in currencies other than the functional currency are remeasured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency at the rates of exchange prevailing at the balance sheet dates. Transaction gains and losses are recognized in the consolidated statements of comprehensive loss during the period or year in which they occur. Cash and cash equivalents Cash and cash equivalents primarily consist of cash and demand deposits which are highly liquid. The Company considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. Restricted cash Restricted cash represents cash granted by the government and designated only for the purchase of property and equipment for certain approved projects. Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the realizable value amount, net of allowances for doubtful accounts. An allowance for doubtful accounts is recorded in the period when loss is probable based on many factors, including the age of the balance, the customer’s payment history and credit quality of the customers, current economic trends and other factors that may affect the Company’s ability to collect from customers. Bad debts are written off after all collection efforts have been exhausted. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or the remaining lease term, whichever is shorter. The estimated useful lives of property and equipment are as follows: Computer equipment and servers 3 – 5 years Office furniture and equipment 3 – 5 years Leasehold improvements over the shorter of lease terms or estimated useful lives of the assets Expenditures for repair and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in the consolidated statements of comprehensive loss. 2 Summary of Significant Accounting Policies (continued) Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. Intangible assets represent purchased computer software. All intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives, which are as follows: Computer software and systems 1 – 3 years Impairment of long-lived assets other than goodwill The Company evaluates long-lived assets, such as property and equipment and purchased intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment Long-term investments In accordance with ASC 325-20, Investments-Other: Cost Method Investments Management regularly evaluates the impairment of the cost method investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Deferred revenue and customer deposits Deferred revenue consists of payments from customers in advance of revenue recognition. Customer deposits relate to customer’s unused balances that are refundable. Once this balance is utilized by the customer, the corresponding amount would be recognized as revenue. Convertible notes At the commitment date, the fees and expenses associated with the issuance of the convertible notes are recorded as a discount to the debt liability in accordance with ASU 2015-03. The convertible notes, which is the proceeds net of fees and expenses payable to the creditor and the fair value of the bifurcated derivative, will be accreted to the redemption value on the maturity date using the effective interest method over the estimated life of the debt instrument. The Company has early adopted ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, and ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The issuance cost of RMB8,436 (US$1,227) was currently presented as a direct deduction from the principal amount of the Convertible Notes on the consolidated balance sheet as of December 31, 2018. ASU 2017-11 no longer requires the Company to consider down round features when determining whether its embedded Conversion Option is indexed to its own stock. 2 Summary of Significant Accounting Policies (continued) Value added taxes (“VAT”) The Company presents VAT assessed by government authorities as reductions of revenues. Pursuant to the PRC tax legislation, VAT is generally imposed in lieu of business tax in the modern service industries, on a nationwide basis. VAT of 6% applies to revenue derived from the provision of certain modern services. The Company is allowed to offset the qualified input VAT paid on taxable purchases against the output VAT chargeable on the modern services provided. Share split On March 1, 2017, the board of directors approved a 1 for 10 share split. Share and per share amounts for common shares and contingently redeemable convertible preferred shares disclosed for all prior periods have been retroactively adjusted to reflect the effects of the share split. Treasury shares Treasury shares represent shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury shares are accounted for under the cost method per ASC 505-30 Treasury Stock 2 Summary of Significant Accounting Policies (continued) Revenue recognition The Company recognizes revenue once all of the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) services have been provided; (3) the price is fixed or determinable; and (4) collectability is reasonably assured. Data solutions The Company generates data solutions revenues primarily by creating and delivering targeted marketing and other vertical data solutions. Targeted marketing revenue is generated by the Company providing an integrated marketing campaign to advertisers mainly through the Company’s Xiaoguotong marketing platform, which is built upon the Company’s multi-dimensional mobile device dataset. The Company generally will create, design, develop and optimize the advertising content for its advertisers. The advertisements are displayed on a wide spectrum of reputable publishers, through bidding for advertisement slots using rates directly negotiated with the various publishers. The arrangements with advertisers are evidenced through contractual agreements that stipulate the types of advertising to be delivered, the timing and the pricing. Advertisers pay for targeted advertisements based on the number of clicks and downloads taken by the users. Revenue is recognized in the period in which the user performs the action the advertiser contracted the Company for. The Company recognizes revenue on a gross basis as the primary obligor, as it uses its own platform’s mobile device dataset with its comprehensive demographic targeting ability to accurately pinpoint the specific mobile devices that is most suitable for the customer’s ads. Additionally, the Company has pricing latitude, has discretion in selecting publishers whose advertisement slots will be purchased, is highly involved in the determination of service specifications and bears credit risk. Based on the advertiser’s preference to avoid lower quality publishers, the Company may recommend a specific reputable online media network to certain advertisers. After pinpointing the specific mobile devices that are most suitable for the customer’s ads using its mobile device dataset, it bids for the available advertising slots on the network and then places the advertisement. Developer services The Company enters into agreements with its customers to provide push notification and instant messaging (collectively “notification services”). Under the terms of the contractual agreements of notification services, the Company provides its customers with access to its notification services platform over the specified period. This enables customers to send notifications and messages to users. Revenue from notification services is recognized using a specific performance method. Costs of revenues Cost of revenues consists primarily of depreciation, labor, bandwidth costs and purchasing of advertising inventory. The Company incurs various sales tax and surcharges such as, city construction tax and education surcharges and cultural development fee in connection with the services provided. In accordance with ASC subtopic 605-45, Revenue Recognition, Principal Agent Considerations Research and development Research and development expenses are primarily incurred in the development of new services, new features, and general improvement of the Company’s technology infrastructure to support its business operations. Research and development costs are expensed as incurred unless such costs qualify for capitalization as software development costs. In order to qualify for capitalization, (i) the preliminary project should be completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) it will result in significant additional functionality in the Company’s services. No research and development costs were capitalized during any of the years presented as the Company has not met all of the necessary capitalization requirements. Advertising expense Advertising expenses, including promotion expenses, are charged to “sales and marketing expenses” as incurred. Advertising expenses amounted to RMB10,377, RMB5,277 and RMB6,697 (US$974) for the year ended December 31, 2016, 2017 and 2018, respectively. 2 Summary of Significant Accounting Policies (continued) Other income Other income represents government grants and profit sharing program with Depositary Bank related to ADSs depositary. Government grants are recognized when there is reasonable assurance that the Company will comply with the attached conditions. When the grant relates to an expense item, it is recognized on a systemic basis in the consolidated statement of comprehensive loss over the period necessary to match the grant to the related costs. Where the grant relates to an asset acquisition, it is recognized in the consolidated statements of comprehensive loss in proportion to the depreciation of the related assets. Profit sharing program is recognized over five-year period as specified in the contract based on certain parameters. Government grants Government grants primarily consist of financial grants received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. For certain government grants, there are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government grants of non-operating nature with no further conditions to be met are recorded as non-operating income in “Other income, net” when received. The government grants with certain operating conditions are recorded as “deferred income” when received and will be recorded as operating income when the conditions are met. Operating leases Leases where substantially all the risks and rewards of ownership of assets remain with the lessor are accounted for as operating leases. Rentals applicable to such operating leases are recognized on a straight-line basis over the lease term. The Company had no capital leases during the years presented. Employee defined contribution plan Full time employees of the Company in the PRC participate in a government mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund, and other welfare benefits are provided to employees. Chinese labor regulations require that the Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred was RMB5,455, RMB12,121 and RMB11,301 (US$1,644) for the year ended December 31,2016, December 31, 2017 and 2018, respectively. Income taxes The Company accounts for income taxes using the liability approach and recognizes deferred tax assets and liabilities for the expected future consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred tax assets and liabilities are recognized on the basis of the temporary differences that exist between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements using enacted tax rates in effect for the year end in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in earnings. Deferred tax assets are reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The Company evaluates the potential for recovery of deferred tax assets by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The components of the deferred tax assets and liabilities are classified as non-current. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. 2 Summary of Significant Accounting Policies (continued) Income taxes The Company evaluated its income tax uncertainty under ASC 740. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The Company elects to classify interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of comprehensive loss. The Company did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses during the years presented. Share-based compensation In accordance with ASC 718, Compensation-Stock Compensation, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Fair value measurements Fair value is 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 Company considers the principal or most advantageous market in which it would transact and the market-based risk measurement or assumptions that market participants would use when pricing the asset or liability. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1-Quoted prices in active markets for identical assets or liabilities. Level 2-Observable inputs other than quoted prices in active markets, quoted prices for identical or similar assets and liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3-Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The carrying amounts of financial assets and liabilities, such as cash equivalents, restricted cash, accounts receivable, other receivables within prepaid expenses and other current assets, balances with related parties, accounts payable, and other payables with accrued liabilities and other current liabilities, approximate their fair values because of the short maturity of these instruments. The carrying amounts of restricted cash (non-current) approximate its fair value since it bears interest rates which approximate market interest rates. Comprehensive loss Comprehensive loss is defined as the increase or decrease in equity of the Company during a year from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss of the Company includes the foreign currency translation adjustments. 2 Summary of Significant Accounting Policies (continued) Loss per share In accordance with ASC 260, Earning per Share Diluted loss per share is computed by dividing net loss attributable to common shareholders as adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the years. Common equivalent shares consist of the common shares issuable upon the conversion of the Company’s contingently redeemable convertible preferred shares and the convertible senior notes using the if-converted method and common shares, including partially paid shares, issuable upon the exercise of the share options, using the treasury stock method. Common share equivalents are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. Concentration of risks Concentration of credit risk Financial assets that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments and accounts receivable. The Company places its cash and cash equivalents with reputable financial institutions which have high-credit ratings. As of December 31, 2017 and 2018, the aggregate amount of cash and cash equivalents and restricted cash of RMB82,609 and RMB331,374 (US$48,198), respectively, were held at major financial institutions located in the PRC, and US$19,232 and US$35,678 (RMB245,303), respectively, were deposited with major financial institutions located outside the PRC. There has been no recent history of default related to these financial institutions. The Company continues to monitor the financial strength of the financial institutions. The Company manages credit risk of accounts receivable through ongoing monitoring of the outstanding balances. Concentration of suppliers Approximately 81.3% and 50.9% of advertising costs were paid to three suppliers for the year ended December 31, 2017 and 2018, respectively. Business and economic risk The Company believes that changes in any of the following areas could have a material adverse effect on the Company’s future consolidated financial position, results of operations or cash flows; changes in the overall demand for services; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with the Company’s ability to attract employees necessary to support its growth. The Company’s operations could also be adversely affected by significant political, regulatory, economic and social uncertainties in the PRC. Currency convertibility risk Substantially all of the Company’s businesses are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China (“PBOC”) or other authorized financial institution at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. Foreign currency exchange rate risk The functional currency and the reporting currency of the Company are the US$ and the RMB, respectively. On June 19, 2010, the PBOC announced the end of the RMB’s de facto peg to the US$, a policy which was instituted in late 2008 in the face of the global financial crisis, to further reform the RMB exchange rate regime and to enhance the RMB’s exchange rate flexibility. On March 15, 2014, the People’s Bank of China announced the widening of the daily trading band for RMB against US$. The appreciation of the US$ against RMB was approximately 4.79% in 2018. Most of the Company’s revenues and costs are denominated in RMB, while a portion of cash and cash equivalents, short-term investments, and accounts payable are denominated in US$. Any significant revaluation of RMB may materially and adversely affect the Company’s consolidated revenues, earnings and financial position in US$. 2 Summary of Significant Accounting Policies (continued) Segment information The Company’s chief operating decision maker is the Chief Executive Officer, who makes resource allocation decisions and assesses performance based on the consolidated financial results. As a result, the Company has only one reportable segment. As the Company generates substantially most of its revenues in the PRC, no geographical segments is presented. Recently issued accounting pronouncements As a company with less than US$1.07 billion in revenue for the last fiscal year, the company qualifies as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include a provision that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Company will take advantage of the extended transition period. In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The core principle of the guidance is that an entity should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued its final standard formally amending the effective date of the new revenue recognition guidance. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018, including interim periods beginning after January 1, 2020. As an “emerging growth company,” or EGC, the Company has elected to take advantage of the extended transition period provided in the Securities Act Section 7(a)(2)(B) for complying with new or revised accounting standards applicable to private companies. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer - Principal versus Agent Considerations (“ASU 2016-08”), Revenue from Contracts with Customer - Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients The Company will adopt ASU 2014-09 for the annual reporting periods beginning January 1, 2019, using the modified retrospective method. The cumulative effect of initially applying the new standard will be recognized on the day of initial application and prior periods will not be retrospectively adjusted. The Company’s implementation efforts are substantially complete. The Company also estimate that there will not be a material impact to the beginning balance of retained earnings. 2 Summary of Significant Accounting Policies (continued) Recently issued accounting pronouncements (continued) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Statement of Cash Flows In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2 Summary of Significant Accounting Policies (continued) Recently issued accounting pronouncements (continued) In February 2017, the FASB issued ASU No. 2017-05, Other income—Gains and Losses from the Derecognition of Nonfinancial Assets In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts receivable, net | 3 As of December 31, 2017 2018 RMB RMB US$ Accounts receivable 53,056 151,219 21,994 Less: allowance for doubtful accounts (3,462 ) (9,308 ) (1,354 ) Total accounts receivable, net 49,594 141,911 20,640 The following table presents the movement in the allowance for doubtful accounts: As of December 31, 2017 2018 RMB RMB US$ Balance at beginning of year 1,035 3,462 504 Provisions 2,427 6,389 929 Write-offs — (543 ) (79 ) Balance at end of year 3,462 9,308 1,354 |
Prepayment and Other Current As
Prepayment and Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepayment and other current assets | 4 Prepayment and other current assets consist of the following: As of December 31, 2017 2018 RMB RMB US$ Prepaid media cost 19,610 54,937 7,990 Prepaid service fee 1,762 6,804 989 Others 12,856 18,837 2,740 Total prepayment and other current assets 34,228 80,578 11,719 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and equipment, net | 5 Property and equipment consist of the following: As of December 31, 2017 2018 RMB RMB US$ Office furniture and equipment 2,647 4,920 716 Computer equipment and servers 63,326 111,274 16,184 Leasehold improvements 789 7,256 1,055 Less: Accumulated depreciation (13,739 ) (30,576 ) (4,447 ) Total property and equipment, net 53,023 92,874 13,508 No impairment charges were recognized on fixed assets for the year ended December 31, 2016, 2017 and 2018, respectively. Depreciation expense recognized for the years ended December 31, 2016, 2017 and 2018 were RMB3,433, RMB8,805 and RMB18,084 (US$2,630), respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible assets | 6 Intangible assets consist of the : As of December 31, 2017 2018 RMB RMB US$ Computer software and systems 319 1,874 273 Less: Accumulated amortization (36 ) (343 ) (50 ) Total intangible assets, net 283 1,531 223 No impairment charges were recognized on intangible assets for the years ended December 31, 2016, 2017 and 2018, respectively. Amortization expense of intangible assets were RMB nil, RMB35 and RMB307 (US$45), for the years ended December 31, 2016, 2017 and 2018 respectively. Estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years is as follows: RMB US$ For the year ending December 31, 2019 749 109 2020 464 67 2021 318 47 2022 — — 2023 — — No intangible assets with an indefinite useful life as of December 31, 2017 and 2018. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Long-Term Investments | 7 As of December 31, 2017 and 2018, long-term investments consisted of the following: As of December 31, 2017 2018 RMB RMB US$ Cost method investments 10,980 79,696 11,591 Less: Impairment loss — — — Total 10,980 79,696 11,591 In 2018, the Company acquired 5.93% of the share capital of Zhuoxuan, a non-listed company, for RMB5,438 (US$792). The investment in Zhuoxuan was classified as a cost method investment, as the Company does not have significant influence over Zhuoxuan and because there is no readily determinable fair value. In 2018, the Company acquired 13.8% of the share capital of Mengxiang, a non-listed company, for RMB21,512 (US$3,134). The investment in Mengxiang was classified as a cost method investment, as the Company does not have significant influence over Mengxiang and because there is no readily determinable fair value. In 2018, the Company acquired 10.0% of the share capital of Qianhai, a non-listed company, for RMB40,000 (US$5,828). The investment in Qianhai was classified as a cost method investment, as the Company does not have significant influence over Qianhai and because there is no readily determinable fair value. In 2016, the Company has acquired a call option to purchase preferred shares of Skymind in a future financing round for RMB980 (US$150). In 2018, the Company held 1.19% of the share capital of Skymind with the exercise of call option and RMB1,716 (US$250). The investment in Skymind was classified as a cost method investment, as the Company does not have significant influence over Skymind and because there is no readily determinable fair value. In 2017, the Company acquired 6.25% of the share capital of Shuwei, a non-listed company, for RMB10,000 (US$1,457), and the Company’s ownership of share in Shuwei decrease to 4.27% in 2018 due to Shuwei’s subsequent rounds of financing. The investment in Shuwei was classified as a cost method investment, as the Company does not have significant influence over Shuwei and because there is no readily determinable fair value. There were no impairment indicators for the cost method investment and no impairment losses for the three years ended December 31, 2016, 2017 and 2018. |
Deferred Revenue and Customer D
Deferred Revenue and Customer Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Deferred Revenue and Customer Deposits | 8 Deferred revenue and customer deposits consist of the following: As of December 31, 2017 2018 RMB RMB US$ Deferred revenue 28,921 33,067 4,809 Customer deposits 20,636 26,416 3,842 Total deferred revenue and customer deposits — current 49,557 59,483 8,651 Deferred revenue — non-current 330 10,265 1,493 8 Roll-forward of customers deposits: Year ended December 31, 2017 2018 RMB RMB US$ Balance at beginning of year 6,064 20,636 3,001 Cash received from customers during the year 129,555 407,630 59,287 Revenue recognized during the year (112,770 ) (397,488 ) (57,812 ) Refunds paid during the year (2,213 ) (4,362 ) (634 ) Balance at end of year 20,636 26,416 3,842 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued liabilities and other current liabilities | 9 Accrued liabilities and other current liabilities consist of the following: As of December 31, 2017 2018 RMB RMB US$ Accrued payroll and welfare payables 38,704 51,607 7,506 Other taxes and surcharge 2,676 11,277 1,640 Service fees 560 11,130 1,619 Acquisition of fixed assets 9,731 104 15 Others 968 2,548 371 Total accrued liabilities and other current liabilities 52,639 76,666 11,151 |
Contingently Redeemable Convert
Contingently Redeemable Convertible Preferred Shares | 12 Months Ended |
Dec. 31, 2018 | |
Temporary Equity [Abstract] | |
Contingently Redeemable Convertible Preferred Shares | 10 Series A contingently redeemable convertible preferred shares (“Series A preferred shares”) On November 18, 2014, the Company issued Series A-1 contingently redeemable convertible preferred shares (“Series A-1 preferred shares”) of 5,187,780 and 367,780 to IDG-Accel China Growth Fund III L.P and IDG-Accel China III Investors L.P, respectively, at US$0.36 per share for a total consideration of US$2,000. On January 21, 2015, the Company issued Series A-2 contingently redeemable convertible preferred shares (“Series A-2 preferred shares”) of 1,388,890, 1,388,890, 2,593,890 and 183,890 to Elite Bright International Limited, Mandra iBase Limited, IDG-Accel China Growth Fund III L.P and IDG-Accel China III Investors L.P, respectively, at US$0.36 per share for a total consideration of US$2,000. Series B contingently redeemable convertible preferred shares (“Series B preferred shares”) On May 13, 2015, the Company issued Series B contingently redeemable convertible preferred shares (“Series B preferred shares”) of 529,100, 529,100, 494,070, 35,030 and 6,349,210 to Elite Bright International Limited, Mandra iBase Limited, IDG-Accel China Growth Fund III L.P, IDG-Accel China III Investors L.P and Greatest Investments Limited, respectively, at US$0.95 per share for a total consideration of US$7,500. Series C contingently redeemable convertible preferred shares (“Series C preferred shares”) On April 1, 2016, the Company issued Series C-1 contingently redeemable convertible preferred shares (“Series C-1 preferred shares”) of 235,160 and 2,116,400 to Greatest Investments Limited and Shenzhen Guohai Chuangxin Investment Management Limited Corporation, respectively, at US$4.73 for a total consideration of US$11,111. 10 (continued) On October 31, 2016, the Company issued Series C-2 contingently redeemable convertible preferred shares (“Series C-2 preferred shares”) of 634,920, 1,693,120 and 211,640 to Mandra iBase Limited, T.C.L. Industries Holdings (H.K.) Ltd and Genesis Ventures Limited, respectively, at US$4.73 per share for a total consideration of US$12,000. Series D contingently redeemable convertible preferred shares (“Series D preferred shares”) On October 5, 2017, the Company issued Series D contingently redeemable convertible preferred shares of 28,062, 2,441,572 and 3,089,853 to Fidelity Investment Funds, Fidelity China Special Situations PLC and Fidelity Funds, respectively, at US$5.40 per share for a total consideration of US$30,000. Dividend rights Each holder of the Series A, B, C, D preferred shares (collectively “Preferred Shares”) will be entitled to receive non-cumulative dividends, prior and in preference to holders of common shares, when declared by the Board of Directors. After payment of the preferential dividends relating to the Preferred Shares have been paid in full, each holder of the Preferred Shares will be entitled to receive dividends payable out of any remaining funds that are legally available when declared by the Board of Directors. For the periods presented, no dividends were declared by the Company’s Board of Directors on the Preferred Shares. Voting rights Each holder of the Preferred Shares are entitled to the number of votes equal to the number of common shares into which such Preferred Shares could be converted at the voting date. Preferred shareholders will vote together with common shareholders, and not as a separate class of series, on all matters put before the shareholders. Liquidation preference In the event of any liquidation, dissolution or winding up of the Company or any deemed liquidation event defined as (i) the liquidation, dissolution or winding-up of the Company, (ii) the acquisition of the Company (whether by a sale of equity, merger or consolidation) in which in excess of 50% of such Company’s voting power outstanding before such transaction is transferred; (iii) the change of the control right of any Company; or (iv) the sale, lease, transfer or other disposition of all or substantially all of the assets of any Company or the exclusive licensing of substantially all of the Company’s intellectual properties, the assets or surplus funds of the Company available for distribution will be distributed as follows: The holders of Series D preferred shares are entitled to receive an amount equal to 115% of the Series D Issue Price, plus all declared but unpaid dividend, in preference to any distribution to the holders of the Series C, B and A preferred shares and the common shareholders of the Company. After the payment to the holders of Series D preferred shares, the holders of Series C preferred shares are entitled to receive an amount equal to 100% of the Issue Price, plus an annual simple return of 10% accrued thereon and plus all declared but unpaid dividend, in preference to any distribution to the holders of the Series B and A preferred shares and the common shareholders of the Company. After the payment to the holders of Series C preferred shares, the holders of Series B preferred shares are entitled to receive an amount equal to 125% of the Series B Issue Price, plus an annual compounded return of 6% accrued thereon and plus all declared but unpaid dividend, in preference to any distribution to the holders of the Series A preferred shares and the common shareholders of the Company. After the payment to the holders of Series B preferred shares, the holders of Series A preferred shares are entitled to receive an amount equal to 150% of the Series A Issue Price, plus an annual compounded return of 8% accrued thereon and plus all declared but unpaid dividend, in preference to any distribution to the holders of the common shareholders of the Company. 10 (continued) After payment has been made to the holders of the Preferred Shares in accordance with the above, the remaining assets of the Company available for distribution to shareholders shall be distributed ratably among the holders of common shares and Preferred Shares based on the number of common shares into which such Preferred Shares are convertible. Conversion rights Each holder of the Preferred Share has the right, at the sole discretion of the holder, to convert at any time and from time to time, all or any portion of the Preferred Shares into common shares based on the then-effective Conversion Price. The initial conversion price is the stated issuance price for each series of Preferred Shares. The initial conversion ratio is on a one for one basis and subject to adjustments in the event that the Company issues additional common shares through options or convertible instruments for a consideration per share received by the Company less than the original respective conversion prices, as the case may be, in effect on the date of and immediately prior to such issue. In such event, the respective conversion price is reduced, concurrently with such issue, to a price as adjusted according to an agreed-upon formula. The above conversion prices are also subject to adjustments on a proportional basis upon other dilution events. The Company’s Series C preferred share agreement contained a “Performance Ratchet” whereby if the Company’s PRC GAAP audited revenue was less than (i) RMB80,000 in 2016, or (ii) RMB120,000 in 2017, Weidong Luo and the Company shall compensate the Series C investors in accordance to the specified formula. In the event of a qualified IPO, each Preferred Share will automatically be converted into common shares. Redemption right If the Company shall at any time after the earlier of (i) January 1, 2020 or (ii) the date that is twelve months after the closing of the IPO, receive a written request from the holders of at least 50% or more of the issued and outstanding Preferred Shares (or common shares issued upon the conversion of the Preferred Shares) or Mandra iBased Limited may request in writing that the Company effect a registration for at least 20% of their Registrable Securities on any internationally recognized exchange that is reasonably acceptable to such requesting Preferred Shares and Common Shareholders using its best efforts. Furthermore, if the Company qualifies for registration on Form F-3 or Form S-3 (or any comparable form for Registration in a jurisdiction other than the United States), any Preferred Share holder may request the Company to file, in any jurisdiction in which the Company has had a registered underwritten public offering, a Registration Statement on Form F-3 or Form S-3 (or any comparable form for Registration in a jurisdiction other than the United States) using its best efforts. Redemption of preferred shares On April 11, 2018, the Company redeemed the 1,738,720 Series C preferred shares held by T.C.L. Industries Holdings (H.K.) Ltd. for an aggregate price of US$9,049. The Company accounted for the difference between the fair value of the consideration paid for the repurchase preferred shares and the carrying value of the preferred shares as an increase to the net loss attributable to ordinary shareholders in the statement of comprehensive loss. Initial measurement and subsequent accounting for Preferred Shares The Preferred Shares do not meet the criteria of mandatorily redeemable financial instruments specified in ASC 480-10-S99, and have been classified as mezzanine equity in the consolidated balance sheets as these Preferred Shares are contingently redeemable upon the occurrence of a conditional event (i.e. Deemed Liquidation Event). The Preferred Shares were initially measured at fair value. Beneficial conversion features exist when the conversion price of the Preferred Shares is lower than the fair value of the common shares at the commitment date, which is the issuance date in the Company’s case. When a beneficial conversion feature exists as of the commitment date, its intrinsic value is bifurcated from the carrying value of the Preferred Shares as a contribution to additional paid-in capital. On the respective commitment dates, the most favorable conversion price used to measure the beneficial conversion feature of the Preferred Shares were higher than the fair value per common share and therefore no beneficial conversion feature was recognized. The Company determined the fair value of common shares with the assistance of an independent third party valuation firm. 10 (continued) Based on the Company’s 2016 PRC GAAP audited financial statements, the “Performance Ratchet” has not been triggered, Weidong Luo and the Company are not required to compensate the Series C holders. In determining whether to account for an amendment of equity-classified preferred shares as a modification or extinguishment, the Company considers an amendment that results in a greater than 10% change in fair value based on an analysis similar to ASC 470-50 is an extinguishment. An amendment that does not meet this criterion is a modification. The amendment in the redemption dates of Series A and Series B preferred shares at the issuance of Series C preferred shares and the removal of the revenue target for the Series A, Series B and Series C preferred shares at issuance of Series D preferred shares, resulted in a modification (as the amendment did not result in a greater than 10 percent change in cash flows) with no further accounting impact as the modification did not result in a change in the fair value of the related preferred shares. The Company has elected to accrete the preferred shares to their redemption value over the contractual period since issuance to the earliest redemption date using the effective interest rate method. The accretion to redemption value including cumulative dividends shall be recorded as a reduction of income available to common shareholders in accordance with ASC 480-10-S99 3A. The Preferred Shares were converted to common shares immediately upon the completion of the Company’s IPO on July 26, 2018. The movement in the carrying value of the convertible preferred shares is as follows: Mezzanine equity Series A Series B Series C Series D Total RMB RMB RMB RMB RMB Balance as of December 31, 2016 26,804 52,044 141,691 — 220,539 Issuance of Series C preferred shares — — 20,571 — 20,571 Issuance of Series D preferred shares — — — 206,359 206,359 Issuance cost of Series D preferred shares — — — (7,223 ) (7,223 ) Accretion of Preferred Shares 175 679 6,055 19,482 26,391 Balance as of December 31, 2017 26,979 52,723 168,317 218,618 466,637 Accretion of Preferred Shares 1,463 4,137 7,441 11,053 24,094 Redemption of Preferred Shares — — (57,234 ) — (57,234 ) Conversion of Preferred Shares (28,442 ) (56,860 ) (118,524 ) (229,671 ) (433,497 ) Balance as of December 31, 2018 — — — — — Balance as of December 31, 2018 (US$) — — — — — |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 1 1 Share option plans 2014 Incentive Plan On July 23 2014, the Company’s board of directors and shareholders approved the 2014 Incentive Plan (the “2014 Plan”). Awards under the 2014 Plan vest to 4 years from the date of grant and expire no more than 10 years after the grant date. The Company reserved a total of 5,500,000 common shares for issuance under the 2014 Plan. As of December 31, 2018, 2,420 remains available for grant under the 2014 Plan. 2017 Incentive Plan On March 1, 2017, the Company’s board of directors and shareholders approved the 2017 Incentive Plan (the “2017 Plan”). Awards under the 2017 Plan vest to 4 years from the date of grant and expire no more than 10 years after the grant date. The Company reserved a total of 6,015,137 common shares for issuance under the 2017 Plan. As of December 31, 2018, 3,467,708 shares remain available of grant under the 2017 Plan. 11 The exercise price, vesting and other conditions of individual awards are determined by the board of directors or any of the committees appointed by the board of directors to administer the 2014 and 2017 Plans. The awards are subject to multiple service vesting periods arranging from 1 to 4 years, and will expire 10 years after the date of award. Upon the termination of the Grantee’s Continuous Service, the Company has the right to repurchase the vested award or shares obtained. Share options The following table summarizes the share option activity for the year ended December 31, 2018: Options Granted to Employees and Directors Number of Options Weighted- Average Exercise Price Weighted- Average grant-date Fair Value per Option Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value RMB RMB RMB Outstanding, December 31, 2016 5,472,031 2.32 2.13 7.89 34,255 Granted 894,115 16.29 10.34 — — Forfeited — — — — — Expired — — — — — Exercised — — — — — Cancelled — — — — — Outstanding, December 31, 2017 6,366,146 4.33 3.31 7.21 95,559 Vested and expected to vest at December 31, 2017 6,366,146 4.33 3.31 7.21 95,559 Outstanding, December 31, 2017 6,366,146 4.33 3.31 7.21 95,559 Granted 1,736,390 26.68 45.72 — — Forfeited 55,520 26.55 24.69 — — Expired — — — — — Exercised — — — — — Cancelled 14,558 6.56 1.87 — — Outstanding, December 31, 2018 8,032,458 9.04 12.48 7.47 507,876 Vested and expected to vest at December 31, 2018 8,032,458 9.04 12.48 7.47 507,876 Exercisable at December 31, 2018 5,185,893 2.75 3.09 6.73 360,505 The aggregate fair value of options vested and recognized as expenses as of December 31, 2016, 2017 and 2018 were RMB2,703, RMB8,275 and RMB24,561 (US$3,572), respectively. The aggregate unrecognized share-based compensation expense was RMB64,099 (US$9,323) as of December 31,2018, which the Company expects to recognize over an estimated weighted-average period of three to four years. The Company estimates the fair value of each award on grant date using the binomial option pricing model with the assistance of an independent third-party valuation firm. The binominal model requires the input of highly subjective assumptions, including the expected share price volatility and the suboptimal early exercise factor. For expected volatility, the Company has made reference to historical volatilities of several comparable companies. The suboptimal early exercise factor was estimated based on the Company’s expectation of exercise behavior of the grantees. The risk-free rate for periods within the contractual life of the options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. Prior to th IPO, the estimated fair value of the ordinary shares, at the option grant dates, were determined by the assistance of an independent third-party valuation firm. Subsequent to the IPO, fair value of the common shares is the price of the Company’s publicly traded shares. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The Company recognizes stock-based compensation expense using the accelerated recognition method over the requisite service period, which is generally subject to graded vesting. 11 The following table presents assumptions used to estimate the fair values of share options granted for the year ended December 31, 2017 and 2018: 2016 2017 2018 Risk-free interest rate 1.83% - 1.84% 2.27% - 2.41% 2.27% - 2.93% Dividend yield 0% 0% 0% Expected volatility 47.33% - 47.60% 46.33% - 47.15% 45.30% - 46.10% Weighted average expected volatility 47.44% 46.66% 45.98% Expected exercise multiple 2.5 2.5 2.5 (i) Risk-free interest rate – The risk-free interest rate for periods within the contractual life of the options is based on the US Treasury yield curve in effect at the time of the grant for a term consistent with the contractual term of the awards. (ii) Dividend yield – The dividend yield is estimated based on the Company’s expected dividend policy over the expected term of the options. (iii) Expected volatility – Expected volatility is estimated based on the historical volatility of common shares of several comparable publicly-traded companies in the same industry. (iv) Expected exercise multiple – expected exercise multiple is estimated based on changes in expected intrinsic value of the option and the likelihood of early exercise by employees. Restricted share units Starting from September 4, 2018, the Company granted restricted Class A common shares of the Company (“Restricted Shares”). A summary of the restricted share units for the year ended December 31, 2018 was stated below: Restricted Share Units Granted to Employees and Directors Number of Share Units Weighted-Average Exercise Price Weighted- Average grant-date Fair Value per Option Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value RMB RMB RMB Outstanding, December 31, 2017 — — — — — Granted 12,550 — 54.69 9.68 907 Forfeited — — — — — Expired — — — — — Exercised — — — — — Cancelled — — — — — Outstanding, December 31, 2018 12,550 — 54.69 9.68 907 Vested and expected to vest at December 31, 2018 12,550 — 54.69 9.68 907 Exercisable at December 31, 2018 — — — — — The weighted average grant-date fair value per share of restricted share units granted for the year ended December 31, 2018 was RMB54.69 (US$7.95). As of December 31, 2018, there was RMB447 (US$68) of unrecognized share-based compensation cost related to restricted shares, which the Company expects to recognize over an estimated weighted-average period of one year. 11 Total compensation costs recognized for the year ended December 31, 2017 and 2018 were as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Research and development 664 1,408 9,448 1,374 Sales and marketing 189 944 3,347 487 General and administrative 1,850 5,923 11,766 1,711 Total 2,703 8,275 24,561 3,572 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 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. British Virgin Islands Under the current laws of the British Virgin Islands (“BVI”), the Company’s BVI incorporated subsidiary are not subject to tax on income or capital gains arising in BVI. In addition, upon payments of dividends by this entity to its shareholders, no BVI withholding tax will be imposed. Hong Kong Under the Hong Kong tax laws, the subsidiary in Hong Kong are subject to the Hong Kong profits tax rate at 16.5% and it may be exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. China Effective from January 1, 2008, the PRC’s statutory, Enterprise Income Tax (“EIT”) rate is 25%. In accordance with the implementation rules of EIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity must file required supporting documents with the tax authority and ensure fulfillment of the relevant HNTE criteria before using the preferential rate. An entity could re-apply for the HNTE certificate when the prior certificate expires. The VIE in the PRC was recognized as a qualified HNTE under the EIT Law by relevant government authorities in 2016. It was entitled to the preferential rate of 15% for 2017 and 2018. The WFOE in the PRC is subject to the 25% EIT rate. The Company’s profit/(loss) before income taxes consists of: As of December 31, 2016 2017 2018 RMB RMB RMB US$ Cayman Islands (3,214 ) (10,584 ) 6,622 964 British Virgin Islands (4 ) (2 ) (25 ) (4 ) Hong Kong 563 (34 ) 208 30 China (54,817 ) (83,651 ) (72,972 ) (10,613 ) Total loss before income taxes (57,472 ) (94,271 ) (66,167 ) (9,623 ) 1 2 Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive loss are as follows: As of December 31, 2016 2017 2018 RMB RMB RMB US$ Current income tax expense — — (35 ) (5 ) Deferred tax (expense)/benefit (3,910 ) 3,980 5 1 Total income tax (expense)/benefit (3,910 ) 3,980 (30 ) (4 ) Reconciliation between expenses of income taxes Reconciliation between the expense of income taxes computed by applying the statutory tax rate to loss before income taxes and the actual provision for income taxes is as follows: As of December 31, 2017 2018 RMB RMB US$ Loss before income tax (94,271 ) (66,167 ) (9,623 ) Income tax expense computed at PRC statutory rate (25%) (23,569 ) (16,542 ) (2,408 ) International tax rate differential 2,650 (1,668 ) (243 ) Preferential tax rate 4,004 6,397 930 Deferred tax items tax rate differential (4,951 ) (6,390 ) (929 ) Research and development super-deduction (7,787 ) (21,559 ) (3,134 ) Non-deductible expenses 1,482 5,701 829 Outside basis differences (7,475 ) — — Deferred tax expense — 4,073 592 Changes in valuation allowance 31,666 30,018 4,367 Income tax expense/(benefit) (3,980 ) 30 4 1 2 Deferred tax assets and liabilities Deferred taxes were measured using the enacted tax rates for the periods in which the temporary differences are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2017 and 2018 are as follows: As of December 31, 2017 2018 RMB RMB US$ Deferred tax assets, net Provision for doubtful debts 866 2,463 358 Accrued expense 231 3,737 543 Net operating loss carry forward 54,079 78,985 11,489 Government grant related to assets 69 54 8 Fixed assets depreciation — 14 2 Estimated liabilities — 10 2 Valuation allowance (55,245 ) (85,263 ) (12,401 ) Total deferred tax assets, net — — — Deferred tax liabilities Fixed assets depreciation 5 — — Total deferred tax liabilities 5 — — The Company operates through its WFOE and VIE and evaluates the potential realization of deferred tax assets on an entity basis. The Company recorded valuation allowance against deferred tax assets of those entities that were in a three-year cumulative financial loss and are not forecasting profits in the near future as of December 31, 2017 and 2018. In making such determination, the Company also evaluated a variety of factors including the Company’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. The Company had deferred tax assets related to net operating loss carry forwards of RMB54,079 and RMB78,985 (US$11,489) from its WFOE and the VIE in China, which can be carried forward to offset taxable income. The net operating loss of WOFE and VIE will expire in years 2019 to 2023 and 2019 to 2028 if not utilized, respectively. The Company did not record any dividend withholding tax, as there were no undistributed earnings arising from the WFOE noted as of December 31, 2017 and 2018. As of December 31, 2017 and 2018, the Company concluded that there was no significant tax uncertainties in its consolidated financial results. The Company did not record any interest and penalties related to an uncertain tax position for each of the year ended December 31, 2017 and 2018. The Company does not expect the amount of unrecognized tax benefits would increase significantly in the next 12 months. In general, the PRC tax authorities have up to five years to conduct examinations of the tax filings of the Company’s PRC subsidiary and the VIE. Accordingly, the PRC tax filings from 2013 through 2018 remain open to examination by the respective tax authorities. The Company may also be subject to the examinations of the tax filings in other jurisdictions, which are not material to the consolidated financial statements. |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 1 3 Convertible notes On April 17, 2018, the Company issued zero coupon convertible notes (the “Convertible Notes”) due 2021 in an aggregate principal amount of US$35,000 to one existing and one new investor. The Convertible Notes will mature on their third anniversary date. Holders of the convertible notes may, at their option during a period starting from the issue date until seven days prior to the maturity of the notes, subject to certain exceptions, convert the notes into common shares of the Company at the then applicable conversion price, which is initially US$11.76 per share, subject to certain anti-dilution and other adjustments (the “Conversion Option”). On the commitment date, the conversion option did not qualify for derivative accounting as the underlying common shares which the Convertible Note could be converted into were not publicly traded nor could they be readily convertible into cash in accordance with ASC 815-15 and ASC 815-40. Upon the initial public offering, whilst the net settlement criteria is subsequently met, the Conversion Option continued not to qualify for derivative accounting as it meets the scope exception provided for under ASC 815-10-15-74(a). If no qualified IPO were to occur within two years of the issue date, the outstanding obligation at their principal amount with an amount representing a total internal rate of return of 8% per annum, under the Convertible Notes would be immediately due and payable (“Contingent Redemption Option”). If the event of default as defined in the Convertible Notes were to occur, a simple interest of 15% will accrue on the principal. If the Company fails to deliver and register title to any shares following conversion of any Convertible Note, an interest represents a total internal rate of return of 15% per annum will accrue on the principal (both “Contingent Interest Feature”). The debt issuance costs of the Convertible Notes is US$1,275. The Company evaluated and determined if there were any embedded derivatives requiring bifurcation and to determine if there were any beneficial conversion features (“BCF”). The Company also evaluated the Contingent Redemption Option and Contingent Interest Feature contained in the Convertible Notes in accordance with ASC 815. Both features qualify for derivative accounting as they are not clearly and closely related to the debt host and will be accounted for as a single compound derivative. At issuance date, the Company recognized a derivative liability of US$3,224, which was subsequently accounted for at fair value with a change in fair value of US$3,224 recognized in current earnings for the year ended December 31, 2018 due to a qualified IPO. Furthermore, as the most favorable conversion price used to measure the BCF for the Convertible Note was the issuance price of US$11.76, no BCF was recognized for the Convertible Note as the fair value per ordinary share at the commitment date was US$9.87, which was less than the most favorable conversion price. Both principal amount subsequent to the bifurcation of its compound derivative and the issuance costs are amortized as interest expense using the effective interest rate method through the maturity dates of the convertible notes. The effective interest rate was 4.69%. The principal amount, debt issuance costs and derivative liability as of December 31, 2018 was as follows: As of April 17, 2018 Charge to profit and loss Foreign currency translation adjustment As of December 31, 2018 RMB RMB RMB RMB US$ Principal amount 219,699 — 20,513 240,212 34,937 Issuance costs (8,436 ) — — (8,436 ) (1,227 ) Contingent redemption feature (19,805 ) — 4,208 (15,597 ) (2,268 ) Convertible notes 191,458 — 24,721 216,179 31,442 Derivative liability 20,237 (21,302 ) 1,065 — — Total 211,695 (21,302 ) 25,786 216,179 31,442 As of December 31, 2018, aggregate future principal payments for the Convertible Notes were as follows: RMB US$ 1 year (Including 1 year) — — 1 year to 2 years (Including 2 years) — — 2 years to 3 years (Including 3 years) 240,212 35,000 Total 240,212 35,000 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14 Operating lease commitments The Company leases office premises and printers in the PRC under non-cancellable operating leases expiring on different dates. Payments under operating leases are expensed on a straight-line basis over the periods of the respective leases. Total operating lease expenses were RMB3,113, RMB6,081 and RMB12,120 (US$1,763) for the year ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2018, future minimum payments under non-cancellable operating leases were as follows: RMB US$ 2019 13,387 1,947 2020 10,573 1,538 2021 4,613 671 2022 and thereafter 4,478 651 Total 33,051 4,807 The Company’s operating lease commitments have no renewal options, rent escalation clauses and restrictions or contingent rents. Capital commitments As of December 31, 2018, future minimum payment under non-cancellable purchase commitment for bandwidth is RMB1,744 (US$254), which is scheduled to be paid within one year; for consulting service is RMB7,008 (US$1,019) and RMB271 (US$39), which is scheduled to be paid within one and two years, respectively. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Share capital | 1 5 On June 27, 2018, the Company’s shareholders adopted a resolution to approve the Post-Offering Memorandum and Articles of Association, The Post-Offering Memorandum and Articles of Association provide that, the Company’s authorized share capital will be changed into US$500 divided into 5,000,000,000 shares. As of December 31, 2017, there were 42,666,670 common shares and 27,867,937 preferred shares. On April 11, 2018, the Company redeemed the 1,738,720 Series C preferred shares held by T.C.L. Industries Holdings (H.K.) Ltd. for an aggregate price of US$9,049,000. On July 26, 2018, the Company completed its IPO on the NASDAQ. The Company offered 9,060,000 ADSs representing 6,040,000 Class A common shares. Upon completion of the IPO, all outstanding 27,867,937 Preferred Shares were converted on a one-for-one basis into 27,867,937 Class A common shares, all 42,666,670 outstanding common shares were converted on a one-for-one basis into 25,666,481 Class A common shares and 17,000,189 Class B common shares, respectively. Holders of Class A common shares and Class B common shares will have the same rights except for voting and conversion Additionally, on August 30, 2018, the underwriters exercised their over-allotment option and issued more 19,708 Class A common shares. And as of December 31, 2018, the Company had repurchased under the Share Repurchase Program an aggregate of 69,455 ADSs, representing 46,303 Class A common shares (notes 12). 1 5 On November 20, 2018, the Board of Directors of the Company authorized the Repurchase Plan, pursuant to which the Company was authorized to repurchase its own issued and outstanding American depositary shares (“ADSs”) up to an aggregate value of US$10 million from the open market. As of December 31, 2018, the Company had repurchased under the Repurchase Plan an aggregate of 69,455 ADSs, representing 46,303 Class A common shares. The Company has no plan for cancellation of these repurchased shares. These shares were recorded at their purchase cost on the consolidated balance sheets. As at December 31, 2018 there were 59,547,823 and 17,000,189 Class A and Class B ordinary shares outstanding respectively. Basic and diluted loss per share is calculated as follows: For the year ended December 31, 2016 For the year ended December 31, 2017 For the year ended December 31, 2018 Common shares Common shares Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Net loss attributable to Class A and Class B common shareholders (61,382 ) (90,291 ) (46,606 ) (6,779 ) (19,591 ) (2,848 ) Deduct: Accretion of redeemable convertible preferred shares (12,427 ) (26,391 ) (16,963 ) (2,467 ) (7,131 ) (1,037 ) Net Loss attributable to common shareholders (73,809 ) (116,682 ) (63,569 ) (9,246 ) (26,722 ) (3,885 ) Denominator: Weighted average number of shares used in calculating basic and diluted loss per share 42,666,670 42,666,670 40,441,999 40,441,999 17,000,189 17,000,189 Basic and diluted loss per share (1.73 ) (2.73 ) (1.57 ) (0.23 ) (1.57 ) (0.23 ) For the years ended December 31, 2016 and 2017, the computation of basic loss per share using the two-class method is not applicable as the Company only had one class of common shares and the Preferred Shares do not have contractual rights and obligations to share in the losses of the Company. For the year ended December 31, 2018, the two-class method is applicable because the Company has Class A and Class B ordinary shares outstanding, and both classes have contractual rights with regards to dividends and distributions upon liquidation of the Company. The effect of all outstanding Preferred Shares, share options, restricted share units and convertible notes were excluded from the computation of diluted loss per share for the years ended December 31, 2016, 2017 and 2018 as their effects would be anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 6 The table below sets forth the major related parties and their relationships with the Company: Name of related parties Relationship KK Mobile Limited Principal owner of the Company, controlled by Weidong Luo Stable View Limited Shareholder of the Company, controlled by Jiawen Fang, who is a director of the Company. Focus Axis Limited Shareholder of the Company, controlled by Xiaodao Wang, who is a director of the Company. Weidong Luo Founder, Chief Executive Officer Fei Chen Founder, President Shenzhen Weixunyitong Information Technology Co., Ltd. Company that is significantly influenced by Weidong Luo Guangzhou Tianlang Network Technology Co., Ltd. Company that is significantly influenced by Weidong Luo Details of related party balances and transactions as of December 31, 2016, 2017 and 2018 are as follows: 16.1 Amounts due from related parties As of December 31, 2016 2017 2018 RMB RMB RMB US$ Focus Axis Limited 2 17 — — KK Mobile Limited 26 40 — — Stable View Limited 2 17 — — Shenzhen Weixunyitong Information Technology Co., Ltd. 65 886 1,543 224 Guangzhou Tianlang Network Technology Co., Ltd. — 300 1,305 190 President — — 1,716 250 Total amounts due from related parties 95 1,260 4,564 664 16.2 Amounts due to related parties As of December 31, 2016 2017 2018 RMB RMB RMB US$ Weidong Luo 5,649 5,649 — — Shenzhen Weixunyitong Information Technology Co., Ltd. 504 461 8,864 1,289 Guangzhou Tianlang Network Technology Co., Ltd. 200 — — — Total amounts due to related parties 6,353 6,110 8,864 1,289 16 16.3 Transactions with related parties For the year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Services provided to: Shenzhen Weixunyitong Information Technology Co., Ltd. 344 2,752 1,002 142 Guangzhou Tianlang Network Technology Co., Ltd. — 755 1,542 224 Total 344 3,507 2,544 366 Services received from: Shenzhen Weixunyitong Information Technology Co., Ltd. 360 672 20,909 3,041 Office premises leased from: Shenzhen Weixunyitong Information Technology Co., Ltd. 1,193 1,557 475 69 Marketing expense incurred: Guangzhou Tianlang Network Technology Co., Ltd. 943 — — — Total 2,496 2,229 21,384 3,110 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 1 7 Revenues consist of the following: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Developer services 23,196 38,795 60,106 8,742 Data solutions Targeted Marketing 43,149 221,153 572,796 83,310 Other vertical data solutions 3,977 24,761 81,239 11,816 Total data solutions 47,126 245,914 654,035 95,126 Total revenues 70,322 284,709 714,141 103,868 |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 18 Financial instrument includes convertible notes and their bifurcated embedded redemption feature derivative. The carrying value of the convertible notes is RMB nil and RMB216,179 as of December 31, 2017 and 2018, respectively. The fair value measurement of the convertible notes falls into level 3 of the fair value hierarchy. The Company measures bifurcated embedded redemption feature derivative of convertible notes at fair value on a recurring basis, which is classified within Level 3 as the fair value is measured based on risk-free interest rate, volatility, mature date, conversion price, and other factors. The Company carries the convertible notes at face value less unamortized debt discount and issuance costs on its consolidated balance sheets, and presents the fair value for required disclosure purposes only. The Company classified the fair value of convertible notes as Level 3 within the fair value hierarchy due to the lack of observable market data and activity. For further information on the convertible notes see Note 13. The changes in fair value of the redemption feature derivative liability during fiscal years 2017 and 2018 are shown in the following table. Fair value measurements Quoted prices in active market for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total As of December 31, 2017 in RMB — — — — Derivative liability 20,237 20,237 Foreign currency translation adjustment 1,065 1,065 Charge to profit and loss — — (21,302 ) 21,302 As of December 31, 2018 in RMB — — — — As of December 31, 2018 in USD — — — — |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 19 The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the VIE incorporated in PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The consolidated results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. Under PRC law, the Company’s subsidiary and VIE located in the PRC (collectively referred as the “PRC entities”) are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund. The PRC entities are required to allocate at least 10% of their after tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. In addition, the registered capital of the PRC entities is also restricted. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the Board of Directors of the subsidiary. The PRC entities are also subject to similar statutory reserve requirements. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances or cash dividends. Amounts of net assets restricted include paid-in capital and statutory reserve of the Company’s PRC subsidiary and the net assets of the VIE in which the Company has no legal ownership, totaling RMB280,922 (US$44,786) and RMB787,223 (US$114,497) as of December 31, 2017 and 2018, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 20 On March 4, 2019, the Company entered into a purchase agreement with Shanghai Liehong Information Technology Limited Company to acquire assets and assume liabilities related to the MLINK business with a total consideration of RMB8,000. The Company is in the process of evaluating the estimated fair value of the net assets on the acquisition date under the purchase method of accounting. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of the Parent Company | 2 1 Basis of presentation For the presentation of the parent company only condensed financial information, the Company records its investments in subsidiaries and VIE under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures The subsidiaries did not pay any dividends to the Company for the periods presented. The Company does not have significant commitments or long-term obligations as of the period end other than those presented. The parent company only financial statements should be read in conjunction with the Company's consolidated financial statements. 2 1 Condensed Balance Sheets As of December 31, 2017 2018 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 118,429 238,236 34,650 Due from the entities within the Group 6,603 7,030 1,022 Prepayments — 2,439 355 Interest receivables — 89 13 Amounts due from related parties 28 — — Other receivables — 1,717 251 Total current assets 125,060 249,511 36,291 Non-current assets: Long-term investments 126,616 590,752 85,921 Intangible assets — 93 14 Total non-current assets 126,616 590,845 85,935 Total assets 251,676 840,356 122,226 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS DEFICIT Current liabilities: Accrued liabilities and other current liabilities 3,072 11,542 1,679 Due to the entities within the Group 702 710 103 Amounts due to related parties 5,649 — — Total current liabilities 9,423 12,252 1,782 Non-current liabilities: Deferred revenue - non-current — 10,265 1,493 Convertible notes — 216,179 31,442 Total non-current liabilities — 226,444 32,935 Total liabilities 9,423 238,696 34,717 Mezzanine equity Series A contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 11,111,120 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 26,979 — — Series B contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 7,936,510 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 52,723 — — Series C contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 4,999,540 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 168,317 — — Series D contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 5,559,487 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 218,618 — — Total mezzanine equity 466,637 — — Shareholders’ deficit Common shares (par value of US$0.0001 and nil per share as of December 31, 2017 and 2018; 470,393,343 and 50,000,000 shares authorized as of December 31, 2017 and 2018, 42,666,670 and nil shares issued and outstanding as of December 31, 2017 and 2018, respectively) 26 — — Class A common shares (par value of nil and US$0.0001 per share as of December 31, 2017 and 2018; nil and 4,920,000,000 shares authorized as of December 31, 2017 and 2018, nil and 59,547,823 shares issued and outstanding as of December 31, 2017 and 2018, respectively) — 37 5 Class B common shares (par value of nil and US$0.0001 per share as of December 31, 2017 and 2018; nil and 30,000,000 shares authorized as of December 31, 2017 and 2018, nil and 17,000,189 shares issued and outstanding as of December 31, 2017 and 2018) — 11 2 Treasury shares (nil and 46,303 class A common shares as of December 31, 2017 and 2018, respectively) — (3,165 ) (460 ) Additional paid-in capital 13,689 944,500 137,372 Accumulated deficit (234,810 ) (348,123 ) (50,632 ) Accumulated other comprehensive loss (3,289 ) 8,400 1,221 Total shareholders’ deficit (224,384 ) 601,660 87,508 Total liabilities, mezzanine equity and shareholders’ deficit 251,676 840,356 122,226 2 1 Condensed Statements of Comprehensive Loss As of December 31, 2016 2017 2018 RMB RMB RMB US$ Revenues — — — — Cost of Revenues — — — — Gross profit — — — — Operating expenses Research and development — — — — Sales and marketing — — — — General and administrative (2,302 ) (10,076 ) (11,941 ) (1,737 ) Share of losses of subsidiaries and the VIE (58,167 ) (79,916 ) (72,750 ) (10,581 ) Total operating expenses (60,469 ) (89,992 ) (84,691 ) (12,318 ) Loss from operations (60,469 ) (89,992 ) (84,691 ) (12,318 ) Foreign exchange loss, net (961 ) (339 ) (186 ) (27 ) Interest income 48 18 3,013 438 Interest expense — — (6,599 ) (960 ) Other income — 22 22,266 3,238 Loss before income taxes (61,382 ) (90,291 ) (66,197 ) (9,629 ) Income tax expenses — — — — Net Loss (61,382 ) (90,291 ) (66,197 ) (9,629 ) Accretion of contingently redeemable convertible preferred shares (12,427 ) (26,391 ) 44,451 6,465 Net loss attributable to common share holders (73,809 ) (116,682 ) (21,746 ) (3,164 ) Other comprehensive income (loss) Foreign currency translation adjustments 1,896 (7,563 ) 29,510 4,292 Total other comprehensive income (loss), net of tax 1,896 (7,563 ) 29,510 4,292 Comprehensive loss (59,486 ) (97,854 ) (36,687 ) (5,337 ) Condensed Statements of Cash Flows For the year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Net cash used in operating activities (2,311 ) (744 ) 16,052 2,335 Net cash used in investing activities (77,193 ) (157,412 ) (535,995 ) (77,957 ) Net cash from financing activities 134,348 217,446 614,884 89,431 Effect of exchange rate changes 2,649 (7,695 ) 24,866 3,617 Net increase in cash and cash equivalents 57,493 51,595 119,807 17,426 Cash and cash equivalents and restricted cash at the beginning of year 9,341 66,834 118,429 17,224 Cash and cash equivalents and restricted cash at the end of year 66,834 118,429 238,236 34,650 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with the generally accepted accounting principles of the United States (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIE. All significant intercompany transactions and balances have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments that management make about the carrying values of assets and liabilities, which are not readily apparent from other sources. Management base their estimates and judgments on historical information and on various other assumptions that they believe are reasonable under the circumstances. U.S. GAAP requires management to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, collectability of accounts receivable, commitments, convertible notes, useful lives and impairment assessment of intangible assets, property and equipment, long-term investment, income taxes, valuation allowance for deferred tax assets, fair value change of derivative liability, and share-based compensation. These estimates are based on management's knowledge about current events and expectations about actions that the Company may undertake in the future. Actual results could differ from those estimates. |
Convenience translation | 2 Summary of Significant Accounting Policies (continued) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader have been calculated at the exchange rate of RMB6.8755 per US$1.00 on December 31, 2018, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Foreign currency translation | Foreign currency translation The functional currency of the Company Foreign Currency Matters Transactions in currencies other than the functional currency are remeasured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency at the rates of exchange prevailing at the balance sheet dates. Transaction gains and losses are recognized in the consolidated statements of comprehensive loss during the period or year in which they occur. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consist of cash and demand deposits which are highly liquid. The Company considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use. |
Restricted cash | Restricted cash Restricted cash represents cash granted by the government and designated only for the purchase of property and equipment for certain approved projects. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the realizable value amount, net of allowances for doubtful accounts. An allowance for doubtful accounts is recorded in the period when loss is probable based on many factors, including the age of the balance, the customer’s payment history and credit quality of the customers, current economic trends and other factors that may affect the Company’s ability to collect from customers. Bad debts are written off after all collection efforts have been exhausted. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or the remaining lease term, whichever is shorter. The estimated useful lives of property and equipment are as follows: Computer equipment and servers 3 – 5 years Office furniture and equipment 3 – 5 years Leasehold improvements over the shorter of lease terms or estimated useful lives of the assets Expenditures for repair and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in the consolidated statements of comprehensive loss. |
Intangible assets | 2 Summary of Significant Accounting Policies (continued) Intangible assets Intangible assets with finite lives are carried at cost less accumulated amortization. Intangible assets represent purchased computer software. All intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives, which are as follows: Computer software and systems 1 – 3 years |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill The Company evaluates long-lived assets, such as property and equipment and purchased intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment |
Long-term Investments | Long-term investments In accordance with ASC 325-20, Investments-Other: Cost Method Investments Management regularly evaluates the impairment of the cost method investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. |
Deferred revenue and customer deposits | Deferred revenue and customer deposits Deferred revenue consists of payments from customers in advance of revenue recognition. Customer deposits relate to customer’s unused balances that are refundable. Once this balance is utilized by the customer, the corresponding amount would be recognized as revenue. |
Convertible notes | Convertible notes At the commitment date, the fees and expenses associated with the issuance of the convertible notes are recorded as a discount to the debt liability in accordance with ASU 2015-03. The convertible notes, which is the proceeds net of fees and expenses payable to the creditor and the fair value of the bifurcated derivative, will be accreted to the redemption value on the maturity date using the effective interest method over the estimated life of the debt instrument. The Company has early adopted ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, and ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The issuance cost of RMB8,436 (US$1,227) was currently presented as a direct deduction from the principal amount of the Convertible Notes on the consolidated balance sheet as of December 31, 2018. ASU 2017-11 no longer requires the Company to consider down round features when determining whether its embedded Conversion Option is indexed to its own stock. |
Value added taxes (“VAT”) | 2 Summary of Significant Accounting Policies (continued) Value added taxes (“VAT”) The Company presents VAT assessed by government authorities as reductions of revenues. Pursuant to the PRC tax legislation, VAT is generally imposed in lieu of business tax in the modern service industries, on a nationwide basis. VAT of 6% applies to revenue derived from the provision of certain modern services. The Company is allowed to offset the qualified input VAT paid on taxable purchases against the output VAT chargeable on the modern services provided. |
Share split | Share split On March 1, 2017, the board of directors approved a 1 for 10 share split. Share and per share amounts for common shares and contingently redeemable convertible preferred shares disclosed for all prior periods have been retroactively adjusted to reflect the effects of the share split. |
Treasury shares | Treasury shares Treasury shares represent shares repurchased by the Company that are no longer outstanding and are held by the Company. Treasury shares are accounted for under the cost method per ASC 505-30 Treasury Stock |
Revenue recognition | 2 Summary of Significant Accounting Policies (continued) Revenue recognition The Company recognizes revenue once all of the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) services have been provided; (3) the price is fixed or determinable; and (4) collectability is reasonably assured. Data solutions The Company generates data solutions revenues primarily by creating and delivering targeted marketing and other vertical data solutions. Targeted marketing revenue is generated by the Company providing an integrated marketing campaign to advertisers mainly through the Company’s Xiaoguotong marketing platform, which is built upon the Company’s multi-dimensional mobile device dataset. The Company generally will create, design, develop and optimize the advertising content for its advertisers. The advertisements are displayed on a wide spectrum of reputable publishers, through bidding for advertisement slots using rates directly negotiated with the various publishers. The arrangements with advertisers are evidenced through contractual agreements that stipulate the types of advertising to be delivered, the timing and the pricing. Advertisers pay for targeted advertisements based on the number of clicks and downloads taken by the users. Revenue is recognized in the period in which the user performs the action the advertiser contracted the Company for. The Company recognizes revenue on a gross basis as the primary obligor, as it uses its own platform’s mobile device dataset with its comprehensive demographic targeting ability to accurately pinpoint the specific mobile devices that is most suitable for the customer’s ads. Additionally, the Company has pricing latitude, has discretion in selecting publishers whose advertisement slots will be purchased, is highly involved in the determination of service specifications and bears credit risk. Based on the advertiser’s preference to avoid lower quality publishers, the Company may recommend a specific reputable online media network to certain advertisers. After pinpointing the specific mobile devices that are most suitable for the customer’s ads using its mobile device dataset, it bids for the available advertising slots on the network and then places the advertisement. Developer services The Company enters into agreements with its customers to provide push notification and instant messaging (collectively “notification services”). Under the terms of the contractual agreements of notification services, the Company provides its customers with access to its notification services platform over the specified period. This enables customers to send notifications and messages to users. Revenue from notification services is recognized using a specific performance method. |
Costs of revenues | Costs of revenues Cost of revenues consists primarily of depreciation, labor, bandwidth costs and purchasing of advertising inventory. The Company incurs various sales tax and surcharges such as, city construction tax and education surcharges and cultural development fee in connection with the services provided. In accordance with ASC subtopic 605-45, Revenue Recognition, Principal Agent Considerations |
Research and development | Research and development Research and development expenses are primarily incurred in the development of new services, new features, and general improvement of the Company’s technology infrastructure to support its business operations. Research and development costs are expensed as incurred unless such costs qualify for capitalization as software development costs. In order to qualify for capitalization, (i) the preliminary project should be completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) it will result in significant additional functionality in the Company’s services. No research and development costs were capitalized during any of the years presented as the Company has not met all of the necessary capitalization requirements. |
Advertising expense | Advertising expense Advertising expenses, including promotion expenses, are charged to “sales and marketing expenses” as incurred. Advertising expenses amounted to RMB10,377, RMB5,277 and RMB6,697 (US$974) for the year ended December 31, 2016, 2017 and 2018, respectively. 2 Summary of Significant Accounting Policies (continued) |
Other income | Other income Other income represents government grants and profit sharing program with Depositary Bank related to ADSs depositary. Government grants are recognized when there is reasonable assurance that the Company will comply with the attached conditions. When the grant relates to an expense item, it is recognized on a systemic basis in the consolidated statement of comprehensive loss over the period necessary to match the grant to the related costs. Where the grant relates to an asset acquisition, it is recognized in the consolidated statements of comprehensive loss in proportion to the depreciation of the related assets. Profit sharing program is recognized over five-year period as specified in the contract based on certain parameters. |
Government grants | Government grants Government grants primarily consist of financial grants received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. For certain government grants, there are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government grants of non-operating nature with no further conditions to be met are recorded as non-operating income in “Other income, net” when received. The government grants with certain operating conditions are recorded as “deferred income” when received and will be recorded as operating income when the conditions are met. |
Operating leases | Operating leases Leases where substantially all the risks and rewards of ownership of assets remain with the lessor are accounted for as operating leases. Rentals applicable to such operating leases are recognized on a straight-line basis over the lease term. The Company had no capital leases during the years presented. |
Employee defined contribution plan | Employee defined contribution plan Full time employees of the Company in the PRC participate in a government mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund, and other welfare benefits are provided to employees. Chinese labor regulations require that the Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred was RMB5,455, RMB12,121 and RMB11,301 (US$1,644) for the year ended December 31,2016, December 31, 2017 and 2018, respectively. |
Income taxes | Income taxes The Company accounts for income taxes using the liability approach and recognizes deferred tax assets and liabilities for the expected future consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred tax assets and liabilities are recognized on the basis of the temporary differences that exist between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements using enacted tax rates in effect for the year end in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in earnings. Deferred tax assets are reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The Company evaluates the potential for recovery of deferred tax assets by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The components of the deferred tax assets and liabilities are classified as non-current. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. 2 Summary of Significant Accounting Policies (continued) Income taxes The Company evaluated its income tax uncertainty under ASC 740. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The Company elects to classify interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of comprehensive loss. The Company did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses during the years presented. |
Share-based compensation | Share-based compensation In accordance with ASC 718, Compensation-Stock Compensation, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Fair value measurements | Fair value measurements Fair value is 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 Company considers the principal or most advantageous market in which it would transact and the market-based risk measurement or assumptions that market participants would use when pricing the asset or liability. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1-Quoted prices in active markets for identical assets or liabilities. Level 2-Observable inputs other than quoted prices in active markets, quoted prices for identical or similar assets and liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3-Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The carrying amounts of financial assets and liabilities, such as cash equivalents, restricted cash, accounts receivable, other receivables within prepaid expenses and other current assets, balances with related parties, accounts payable, and other payables with accrued liabilities and other current liabilities, approximate their fair values because of the short maturity of these instruments. The carrying amounts of restricted cash (non-current) approximate its fair value since it bears interest rates which approximate market interest rates. |
Comprehensive loss | Comprehensive loss Comprehensive loss is defined as the increase or decrease in equity of the Company during a year from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss of the Company includes the foreign currency translation adjustments. |
Loss per share | Loss per share In accordance with ASC 260, Earning per Share Diluted loss per share is computed by dividing net loss attributable to common shareholders as adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the years. Common equivalent shares consist of the common shares issuable upon the conversion of the Company’s contingently redeemable convertible preferred shares and the convertible senior notes using the if-converted method and common shares, including partially paid shares, issuable upon the exercise of the share options, using the treasury stock method. Common share equivalents are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. |
Concentration of risks | Concentration of risks Concentration of credit risk Financial assets that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments and accounts receivable. The Company places its cash and cash equivalents with reputable financial institutions which have high-credit ratings. As of December 31, 2017 and 2018, the aggregate amount of cash and cash equivalents and restricted cash of RMB82,609 and RMB331,374 (US$48,198), respectively, were held at major financial institutions located in the PRC, and US$19,232 and US$35,678 (RMB245,303), respectively, were deposited with major financial institutions located outside the PRC. There has been no recent history of default related to these financial institutions. The Company continues to monitor the financial strength of the financial institutions. The Company manages credit risk of accounts receivable through ongoing monitoring of the outstanding balances. Concentration of suppliers Approximately 81.3% and 50.9% of advertising costs were paid to three suppliers for the year ended December 31, 2017 and 2018, respectively. Business and economic risk The Company believes that changes in any of the following areas could have a material adverse effect on the Company’s future consolidated financial position, results of operations or cash flows; changes in the overall demand for services; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with the Company’s ability to attract employees necessary to support its growth. The Company’s operations could also be adversely affected by significant political, regulatory, economic and social uncertainties in the PRC. Currency convertibility risk Substantially all of the Company’s businesses are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China (“PBOC”) or other authorized financial institution at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. |
Foreign currency exchange rate risk | Foreign currency exchange rate risk The functional currency and the reporting currency of the Company are the US$ and the RMB, respectively. On June 19, 2010, the PBOC announced the end of the RMB’s de facto peg to the US$, a policy which was instituted in late 2008 in the face of the global financial crisis, to further reform the RMB exchange rate regime and to enhance the RMB’s exchange rate flexibility. On March 15, 2014, the People’s Bank of China announced the widening of the daily trading band for RMB against US$. The appreciation of the US$ against RMB was approximately 4.79% in 2018. Most of the Company’s revenues and costs are denominated in RMB, while a portion of cash and cash equivalents, short-term investments, and accounts payable are denominated in US$. Any significant revaluation of RMB may materially and adversely affect the Company’s consolidated revenues, earnings and financial position in US$. |
Segment information | 2 Summary of Significant Accounting Policies (continued) Segment information The Company’s chief operating decision maker is the Chief Executive Officer, who makes resource allocation decisions and assesses performance based on the consolidated financial results. As a result, the Company has only one reportable segment. As the Company generates substantially most of its revenues in the PRC, no geographical segments is presented. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements As a company with less than US$1.07 billion in revenue for the last fiscal year, the company qualifies as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include a provision that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Company will take advantage of the extended transition period. In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The core principle of the guidance is that an entity should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued its final standard formally amending the effective date of the new revenue recognition guidance. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018, including interim periods beginning after January 1, 2020. As an “emerging growth company,” or EGC, the Company has elected to take advantage of the extended transition period provided in the Securities Act Section 7(a)(2)(B) for complying with new or revised accounting standards applicable to private companies. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer - Principal versus Agent Considerations (“ASU 2016-08”), Revenue from Contracts with Customer - Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients The Company will adopt ASU 2014-09 for the annual reporting periods beginning January 1, 2019, using the modified retrospective method. The cumulative effect of initially applying the new standard will be recognized on the day of initial application and prior periods will not be retrospectively adjusted. The Company’s implementation efforts are substantially complete. The Company also estimate that there will not be a material impact to the beginning balance of retained earnings. 2 Summary of Significant Accounting Policies (continued) Recently issued accounting pronouncements (continued) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Statement of Cash Flows In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2 Summary of Significant Accounting Policies (continued) Recently issued accounting pronouncements (continued) In February 2017, the FASB issued ASU No. 2017-05, Other income—Gains and Losses from the Derecognition of Nonfinancial Assets In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Assets and Liabilities of VIE | The following table set forth the assets and liabilities of the VIE included in the Company’s consolidated balance sheets: As of December 31, 2017 2018 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 49,853 31,763 4,620 Restricted cash 115 115 17 Accounts receivable 49,561 141,705 20,609 Prepayments and other current assets 29,637 64,532 9,386 Amounts due from the Company and its subsidiaries 3,806 3,965 577 Amounts due from related parities 1,186 2,848 414 Total current assets 134,158 244,928 35,623 Non-current assets: Long-term investments 10,000 71,512 10,401 Other receivables-non current 1,354 2,529 368 Property and equipment, net 24,258 46,271 6,730 Intangible assets, net 283 1,406 204 Long-term prepayment — 11,000 1,600 Total non-current assets 35,895 132,718 19,303 Total assets 170,053 377,646 54,926 LIABILITIES: Current liabilities: Accounts payable 8,340 18,683 2,717 Deferred revenue and customer deposits 48,085 55,625 8,091 Accrued liabilities and other current liabilities 31,631 59,556 8,662 Amounts due to the Company and its subsidiaries 39,861 15,534 2,259 Amounts due to related parties 459 8,864 1,289 Total current liabilities 128,376 158,262 23,018 Non-current liabilities: Amounts due to the Company and its subsidiaries 60,000 240,000 34,907 Other non-current liabilities 216 140 20 Deferred tax liabilities 5 — — Deferred revenue and customer deposits 330 — — Total non-current liabilities 60,551 240,140 34,927 Total liabilities 188,927 398,402 57,945 |
Summary of Results of Operations and Cash Flows of VIE | 1 The table sets forth the results of operations and cash flows of the VIE included in the company’s consolidated statements of comprehensive loss and cash flows. As of December 31, 2016 2017 2018 RMB RMB RMB US$ Revenues 70,148 284,348 709,594 103,206 Cost of revenues (47,559 ) (206,789 ) (499,589 ) (72,662 ) Net income/(loss) 18,681 (40,003 ) (16,785 ) (2,441 ) Net cash used in operating activities 7,590 (51,016 ) (68,316 ) (9,936 ) Net cash used in investing activities — (10,000 ) (104,675 ) (15,224 ) Net cash provided by financing activities 1,000 — 154,901 22,529 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Computer equipment and servers 3 – 5 years Office furniture and equipment 3 – 5 years Leasehold improvements over the shorter of lease terms or estimated useful lives of the assets |
Schedule of Finite Lived Intangible Assets Estimated Economic Lives | All intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives, which are as follows: Computer software and systems 1 – 3 years Intangible assets consist of the : As of December 31, 2017 2018 RMB RMB US$ Computer software and systems 319 1,874 273 Less: Accumulated amortization (36 ) (343 ) (50 ) Total intangible assets, net 283 1,531 223 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | As of December 31, 2017 2018 RMB RMB US$ Accounts receivable 53,056 151,219 21,994 Less: allowance for doubtful accounts (3,462 ) (9,308 ) (1,354 ) Total accounts receivable, net 49,594 141,911 20,640 |
Schedule of Movement in Allowance for Doubtful Accounts | The following table presents the movement in the allowance for doubtful accounts: As of December 31, 2017 2018 RMB RMB US$ Balance at beginning of year 1,035 3,462 504 Provisions 2,427 6,389 929 Write-offs — (543 ) (79 ) Balance at end of year 3,462 9,308 1,354 |
Prepayment and Other Current _2
Prepayment and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
'Schedule of Prepayment and Other Current Assets | Prepayment and other current assets consist of the following: As of December 31, 2017 2018 RMB RMB US$ Prepaid media cost 19,610 54,937 7,990 Prepaid service fee 1,762 6,804 989 Others 12,856 18,837 2,740 Total prepayment and other current assets 34,228 80,578 11,719 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: As of December 31, 2017 2018 RMB RMB US$ Office furniture and equipment 2,647 4,920 716 Computer equipment and servers 63,326 111,274 16,184 Leasehold improvements 789 7,256 1,055 Less: Accumulated depreciation (13,739 ) (30,576 ) (4,447 ) Total property and equipment, net 53,023 92,874 13,508 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Finite Lived Intangible Assets Estimated Economic Lives | All intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives, which are as follows: Computer software and systems 1 – 3 years Intangible assets consist of the : As of December 31, 2017 2018 RMB RMB US$ Computer software and systems 319 1,874 273 Less: Accumulated amortization (36 ) (343 ) (50 ) Total intangible assets, net 283 1,531 223 |
Schedule of Estimated Amortization Expense Related to the Existing Intangible Assets | Estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years is as follows: RMB US$ For the year ending December 31, 2019 749 109 2020 464 67 2021 318 47 2022 — — 2023 — — |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Long-Term Investments | As of December 31, 2017 and 2018, long-term investments consisted of the following: As of December 31, 2017 2018 RMB RMB US$ Cost method investments 10,980 79,696 11,591 Less: Impairment loss — — — Total 10,980 79,696 11,591 |
Deferred Revenue and Customer_2
Deferred Revenue and Customer Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Deferred Revenue, by Arrangement | Deferred revenue and customer deposits consist of the following: As of December 31, 2017 2018 RMB RMB US$ Deferred revenue 28,921 33,067 4,809 Customer deposits 20,636 26,416 3,842 Total deferred revenue and customer deposits — current 49,557 59,483 8,651 Deferred revenue — non-current 330 10,265 1,493 |
Schedule of Roll Forward of Customer Deposits | 8 Roll-forward of customers deposits: Year ended December 31, 2017 2018 RMB RMB US$ Balance at beginning of year 6,064 20,636 3,001 Cash received from customers during the year 129,555 407,630 59,287 Revenue recognized during the year (112,770 ) (397,488 ) (57,812 ) Refunds paid during the year (2,213 ) (4,362 ) (634 ) Balance at end of year 20,636 26,416 3,842 |
Accrued Liabilities and Other L
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued liabilities and other current liabilities consist of the following: As of December 31, 2017 2018 RMB RMB US$ Accrued payroll and welfare payables 38,704 51,607 7,506 Other taxes and surcharge 2,676 11,277 1,640 Service fees 560 11,130 1,619 Acquisition of fixed assets 9,731 104 15 Others 968 2,548 371 Total accrued liabilities and other current liabilities 52,639 76,666 11,151 |
Contingently Redeemable Conve_2
Contingently Redeemable Convertible Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Temporary Equity [Abstract] | |
Schedule of Movement in Carrying Value of Convertible Preferred Shares | The movement in the carrying value of the convertible preferred shares is as follows: Mezzanine equity Series A Series B Series C Series D Total RMB RMB RMB RMB RMB Balance as of December 31, 2016 26,804 52,044 141,691 — 220,539 Issuance of Series C preferred shares — — 20,571 — 20,571 Issuance of Series D preferred shares — — — 206,359 206,359 Issuance cost of Series D preferred shares — — — (7,223 ) (7,223 ) Accretion of Preferred Shares 175 679 6,055 19,482 26,391 Balance as of December 31, 2017 26,979 52,723 168,317 218,618 466,637 Accretion of Preferred Shares 1,463 4,137 7,441 11,053 24,094 Redemption of Preferred Shares — — (57,234 ) — (57,234 ) Conversion of Preferred Shares (28,442 ) (56,860 ) (118,524 ) (229,671 ) (433,497 ) Balance as of December 31, 2018 — — — — — Balance as of December 31, 2018 (US$) — — — — — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share Option Activity | The following table summarizes the share option activity for the year ended December 31, 2018: Options Granted to Employees and Directors Number of Options Weighted- Average Exercise Price Weighted- Average grant-date Fair Value per Option Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value RMB RMB RMB Outstanding, December 31, 2016 5,472,031 2.32 2.13 7.89 34,255 Granted 894,115 16.29 10.34 — — Forfeited — — — — — Expired — — — — — Exercised — — — — — Cancelled — — — — — Outstanding, December 31, 2017 6,366,146 4.33 3.31 7.21 95,559 Vested and expected to vest at December 31, 2017 6,366,146 4.33 3.31 7.21 95,559 Outstanding, December 31, 2017 6,366,146 4.33 3.31 7.21 95,559 Granted 1,736,390 26.68 45.72 — — Forfeited 55,520 26.55 24.69 — — Expired — — — — — Exercised — — — — — Cancelled 14,558 6.56 1.87 — — Outstanding, December 31, 2018 8,032,458 9.04 12.48 7.47 507,876 Vested and expected to vest at December 31, 2018 8,032,458 9.04 12.48 7.47 507,876 Exercisable at December 31, 2018 5,185,893 2.75 3.09 6.73 360,505 |
Schedule of Assumptions Used to Estimate Fair Values of Share Options Granted | 11 The following table presents assumptions used to estimate the fair values of share options granted for the year ended December 31, 2017 and 2018: 2016 2017 2018 Risk-free interest rate 1.83% - 1.84% 2.27% - 2.41% 2.27% - 2.93% Dividend yield 0% 0% 0% Expected volatility 47.33% - 47.60% 46.33% - 47.15% 45.30% - 46.10% Weighted average expected volatility 47.44% 46.66% 45.98% Expected exercise multiple 2.5 2.5 2.5 (i) Risk-free interest rate – The risk-free interest rate for periods within the contractual life of the options is based on the US Treasury yield curve in effect at the time of the grant for a term consistent with the contractual term of the awards. (ii) Dividend yield – The dividend yield is estimated based on the Company’s expected dividend policy over the expected term of the options. (iii) Expected volatility – Expected volatility is estimated based on the historical volatility of common shares of several comparable publicly-traded companies in the same industry. (iv) Expected exercise multiple – expected exercise multiple is estimated based on changes in expected intrinsic value of the option and the likelihood of early exercise by employees. |
Summary of Restricted Share Units | A summary of the restricted share units for the year ended December 31, 2018 was stated below: Restricted Share Units Granted to Employees and Directors Number of Share Units Weighted-Average Exercise Price Weighted- Average grant-date Fair Value per Option Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value RMB RMB RMB Outstanding, December 31, 2017 — — — — — Granted 12,550 — 54.69 9.68 907 Forfeited — — — — — Expired — — — — — Exercised — — — — — Cancelled — — — — — Outstanding, December 31, 2018 12,550 — 54.69 9.68 907 Vested and expected to vest at December 31, 2018 12,550 — 54.69 9.68 907 Exercisable at December 31, 2018 — — — — — |
Summary of Total Compensation Costs Recognized | 11 Total compensation costs recognized for the year ended December 31, 2017 and 2018 were as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Research and development 664 1,408 9,448 1,374 Sales and marketing 189 944 3,347 487 General and administrative 1,850 5,923 11,766 1,711 Total 2,703 8,275 24,561 3,572 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Profit / (Loss) Before Income Taxes | The Company’s profit/(loss) before income taxes consists of: As of December 31, 2016 2017 2018 RMB RMB RMB US$ Cayman Islands (3,214 ) (10,584 ) 6,622 964 British Virgin Islands (4 ) (2 ) (25 ) (4 ) Hong Kong 563 (34 ) 208 30 China (54,817 ) (83,651 ) (72,972 ) (10,613 ) Total loss before income taxes (57,472 ) (94,271 ) (66,167 ) (9,623 ) |
Summary of Composition of Income Tax Expense | The current and deferred portions of income tax expense included in the consolidated statements of comprehensive loss are as follows: As of December 31, 2016 2017 2018 RMB RMB RMB US$ Current income tax expense — — (35 ) (5 ) Deferred tax (expense)/benefit (3,910 ) 3,980 5 1 Total income tax (expense)/benefit (3,910 ) 3,980 (30 ) (4 ) |
Summary of Reconciliation Between Expenses of Income Taxes | Reconciliation between the expense of income taxes computed by applying the statutory tax rate to loss before income taxes and the actual provision for income taxes is as follows: As of December 31, 2017 2018 RMB RMB US$ Loss before income tax (94,271 ) (66,167 ) (9,623 ) Income tax expense computed at PRC statutory rate (25%) (23,569 ) (16,542 ) (2,408 ) International tax rate differential 2,650 (1,668 ) (243 ) Preferential tax rate 4,004 6,397 930 Deferred tax items tax rate differential (4,951 ) (6,390 ) (929 ) Research and development super-deduction (7,787 ) (21,559 ) (3,134 ) Non-deductible expenses 1,482 5,701 829 Outside basis differences (7,475 ) — — Deferred tax expense — 4,073 592 Changes in valuation allowance 31,666 30,018 4,367 Income tax expense/(benefit) (3,980 ) 30 4 |
Summary of Deferred Tax Assets and Liabilities | Deferred taxes were measured using the enacted tax rates for the periods in which the temporary differences are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2017 and 2018 are as follows: As of December 31, 2017 2018 RMB RMB US$ Deferred tax assets, net Provision for doubtful debts 866 2,463 358 Accrued expense 231 3,737 543 Net operating loss carry forward 54,079 78,985 11,489 Government grant related to assets 69 54 8 Fixed assets depreciation — 14 2 Estimated liabilities — 10 2 Valuation allowance (55,245 ) (85,263 ) (12,401 ) Total deferred tax assets, net — — — Deferred tax liabilities Fixed assets depreciation 5 — — Total deferred tax liabilities 5 — — |
Convertible Notes (Tables)
Convertible Notes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Principal Amount, Debt Issuance Costs and Derivative Liability | The principal amount, debt issuance costs and derivative liability as of December 31, 2018 was as follows: As of April 17, 2018 Charge to profit and loss Foreign currency translation adjustment As of December 31, 2018 RMB RMB RMB RMB US$ Principal amount 219,699 — 20,513 240,212 34,937 Issuance costs (8,436 ) — — (8,436 ) (1,227 ) Contingent redemption feature (19,805 ) — 4,208 (15,597 ) (2,268 ) Convertible notes 191,458 — 24,721 216,179 31,442 Derivative liability 20,237 (21,302 ) 1,065 — — Total 211,695 (21,302 ) 25,786 216,179 31,442 |
Summary of Aggregate Future Principal Payments for the Convertible Notes | As of December 31, 2018, aggregate future principal payments for the Convertible Notes were as follows: RMB US$ 1 year (Including 1 year) — — 1 year to 2 years (Including 2 years) — — 2 years to 3 years (Including 3 years) 240,212 35,000 Total 240,212 35,000 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-cancelable Operating Leases | As of December 31, 2018, future minimum payments under non-cancellable operating leases were as follows: RMB US$ 2019 13,387 1,947 2020 10,573 1,538 2021 4,613 671 2022 and thereafter 4,478 651 Total 33,051 4,807 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Basic and Diluted Loss Per Share | Basic and diluted loss per share is calculated as follows: For the year ended December 31, 2016 For the year ended December 31, 2017 For the year ended December 31, 2018 Common shares Common shares Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Net loss attributable to Class A and Class B common shareholders (61,382 ) (90,291 ) (46,606 ) (6,779 ) (19,591 ) (2,848 ) Deduct: Accretion of redeemable convertible preferred shares (12,427 ) (26,391 ) (16,963 ) (2,467 ) (7,131 ) (1,037 ) Net Loss attributable to common shareholders (73,809 ) (116,682 ) (63,569 ) (9,246 ) (26,722 ) (3,885 ) Denominator: Weighted average number of shares used in calculating basic and diluted loss per share 42,666,670 42,666,670 40,441,999 40,441,999 17,000,189 17,000,189 Basic and diluted loss per share (1.73 ) (2.73 ) (1.57 ) (0.23 ) (1.57 ) (0.23 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Amount Due From Related Party | 16.1 Amounts due from related parties As of December 31, 2016 2017 2018 RMB RMB RMB US$ Focus Axis Limited 2 17 — — KK Mobile Limited 26 40 — — Stable View Limited 2 17 — — Shenzhen Weixunyitong Information Technology Co., Ltd. 65 886 1,543 224 Guangzhou Tianlang Network Technology Co., Ltd. — 300 1,305 190 President — — 1,716 250 Total amounts due from related parties 95 1,260 4,564 664 |
Schedule of Amount Due to Related Party | 16.2 Amounts due to related parties As of December 31, 2016 2017 2018 RMB RMB RMB US$ Weidong Luo 5,649 5,649 — — Shenzhen Weixunyitong Information Technology Co., Ltd. 504 461 8,864 1,289 Guangzhou Tianlang Network Technology Co., Ltd. 200 — — — Total amounts due to related parties 6,353 6,110 8,864 1,289 |
Schedule of Transactions With Related Parties | 16 16.3 Transactions with related parties For the year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Services provided to: Shenzhen Weixunyitong Information Technology Co., Ltd. 344 2,752 1,002 142 Guangzhou Tianlang Network Technology Co., Ltd. — 755 1,542 224 Total 344 3,507 2,544 366 Services received from: Shenzhen Weixunyitong Information Technology Co., Ltd. 360 672 20,909 3,041 Office premises leased from: Shenzhen Weixunyitong Information Technology Co., Ltd. 1,193 1,557 475 69 Marketing expense incurred: Guangzhou Tianlang Network Technology Co., Ltd. 943 — — — Total 2,496 2,229 21,384 3,110 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues | Revenues consist of the following: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Developer services 23,196 38,795 60,106 8,742 Data solutions Targeted Marketing 43,149 221,153 572,796 83,310 Other vertical data solutions 3,977 24,761 81,239 11,816 Total data solutions 47,126 245,914 654,035 95,126 Total revenues 70,322 284,709 714,141 103,868 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in Fair Value of Redemption Feature Derivative Liability | The changes in fair value of the redemption feature derivative liability during fiscal years 2017 and 2018 are shown in the following table. Fair value measurements Quoted prices in active market for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total As of December 31, 2017 in RMB — — — — Derivative liability 20,237 20,237 Foreign currency translation adjustment 1,065 1,065 Charge to profit and loss — — (21,302 ) 21,302 As of December 31, 2018 in RMB — — — — As of December 31, 2018 in USD — — — — |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets As of December 31, 2017 2018 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 118,429 238,236 34,650 Due from the entities within the Group 6,603 7,030 1,022 Prepayments — 2,439 355 Interest receivables — 89 13 Amounts due from related parties 28 — — Other receivables — 1,717 251 Total current assets 125,060 249,511 36,291 Non-current assets: Long-term investments 126,616 590,752 85,921 Intangible assets — 93 14 Total non-current assets 126,616 590,845 85,935 Total assets 251,676 840,356 122,226 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS DEFICIT Current liabilities: Accrued liabilities and other current liabilities 3,072 11,542 1,679 Due to the entities within the Group 702 710 103 Amounts due to related parties 5,649 — — Total current liabilities 9,423 12,252 1,782 Non-current liabilities: Deferred revenue - non-current — 10,265 1,493 Convertible notes — 216,179 31,442 Total non-current liabilities — 226,444 32,935 Total liabilities 9,423 238,696 34,717 Mezzanine equity Series A contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 11,111,120 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 26,979 — — Series B contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 7,936,510 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 52,723 — — Series C contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 4,999,540 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 168,317 — — Series D contingently redeemable convertible preferred shares (par value of US$0.0001 and US$ nil per share as of December 31, 2017 and 2018; 5,559,487 and nil shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively) 218,618 — — Total mezzanine equity 466,637 — — Shareholders’ deficit Common shares (par value of US$0.0001 and nil per share as of December 31, 2017 and 2018; 470,393,343 and 50,000,000 shares authorized as of December 31, 2017 and 2018, 42,666,670 and nil shares issued and outstanding as of December 31, 2017 and 2018, respectively) 26 — — Class A common shares (par value of nil and US$0.0001 per share as of December 31, 2017 and 2018; nil and 4,920,000,000 shares authorized as of December 31, 2017 and 2018, nil and 59,547,823 shares issued and outstanding as of December 31, 2017 and 2018, respectively) — 37 5 Class B common shares (par value of nil and US$0.0001 per share as of December 31, 2017 and 2018; nil and 30,000,000 shares authorized as of December 31, 2017 and 2018, nil and 17,000,189 shares issued and outstanding as of December 31, 2017 and 2018) — 11 2 Treasury shares (nil and 46,303 class A common shares as of December 31, 2017 and 2018, respectively) — (3,165 ) (460 ) Additional paid-in capital 13,689 944,500 137,372 Accumulated deficit (234,810 ) (348,123 ) (50,632 ) Accumulated other comprehensive loss (3,289 ) 8,400 1,221 Total shareholders’ deficit (224,384 ) 601,660 87,508 Total liabilities, mezzanine equity and shareholders’ deficit 251,676 840,356 122,226 |
Condensed Statements of Comprehensive Loss | 2 1 Condensed Statements of Comprehensive Loss As of December 31, 2016 2017 2018 RMB RMB RMB US$ Revenues — — — — Cost of Revenues — — — — Gross profit — — — — Operating expenses Research and development — — — — Sales and marketing — — — — General and administrative (2,302 ) (10,076 ) (11,941 ) (1,737 ) Share of losses of subsidiaries and the VIE (58,167 ) (79,916 ) (72,750 ) (10,581 ) Total operating expenses (60,469 ) (89,992 ) (84,691 ) (12,318 ) Loss from operations (60,469 ) (89,992 ) (84,691 ) (12,318 ) Foreign exchange loss, net (961 ) (339 ) (186 ) (27 ) Interest income 48 18 3,013 438 Interest expense — — (6,599 ) (960 ) Other income — 22 22,266 3,238 Loss before income taxes (61,382 ) (90,291 ) (66,197 ) (9,629 ) Income tax expenses — — — — Net Loss (61,382 ) (90,291 ) (66,197 ) (9,629 ) Accretion of contingently redeemable convertible preferred shares (12,427 ) (26,391 ) 44,451 6,465 Net loss attributable to common share holders (73,809 ) (116,682 ) (21,746 ) (3,164 ) Other comprehensive income (loss) Foreign currency translation adjustments 1,896 (7,563 ) 29,510 4,292 Total other comprehensive income (loss), net of tax 1,896 (7,563 ) 29,510 4,292 Comprehensive loss (59,486 ) (97,854 ) (36,687 ) (5,337 ) |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Net cash used in operating activities (2,311 ) (744 ) 16,052 2,335 Net cash used in investing activities (77,193 ) (157,412 ) (535,995 ) (77,957 ) Net cash from financing activities 134,348 217,446 614,884 89,431 Effect of exchange rate changes 2,649 (7,695 ) 24,866 3,617 Net increase in cash and cash equivalents 57,493 51,595 119,807 17,426 Cash and cash equivalents and restricted cash at the beginning of year 9,341 66,834 118,429 17,224 Cash and cash equivalents and restricted cash at the end of year 66,834 118,429 238,236 34,650 |
Organization and Principal Ac_3
Organization and Principal Activities - Summary of Assets and Liabilities of VIE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 576,562 | $ 83,857 | ¥ 208,161 | $ 30,276 | ¥ 103,168 | ¥ 37,570 |
Restricted cash | 115 | 17 | 115 | |||
Accounts receivable | 141,911 | 20,640 | 49,594 | |||
Amounts due from related parties | 4,564 | 664 | 1,260 | 95 | ||
Total current assets | 803,730 | 116,897 | 293,358 | |||
Non-current assets: | ||||||
Long-term investments | 79,696 | 11,591 | 10,980 | |||
Property and equipment, net | 92,874 | 13,508 | 53,023 | |||
Intangible assets, net | 1,531 | 223 | 283 | |||
Total non-current assets | 188,338 | 27,393 | 66,092 | |||
Total assets | 992,068 | 144,290 | 359,450 | |||
Current liabilities: | ||||||
Accounts payable | 18,811 | 2,736 | 8,340 | |||
Deferred revenue and customer deposits | 33,067 | 4,809 | 28,921 | |||
Accrued liabilities and other current liabilities | 76,666 | 11,151 | 52,639 | |||
Amount due to related parties | 8,864 | 1,289 | 6,110 | ¥ 6,353 | ||
Total current liabilities | 163,824 | 23,827 | 116,646 | |||
Non-current liabilities: | ||||||
Other non-current liabilities | 140 | 20 | 216 | |||
Deferred tax liabilities | 5 | |||||
Deferred revenue and customer deposits | 10,265 | 1,493 | 330 | |||
Total non-current liabilities | 226,584 | 32,955 | 551 | |||
Total liabilities | 390,408 | 56,782 | 117,197 | |||
VIE | ||||||
Current assets: | ||||||
Cash and cash equivalents | 31,763 | 4,620 | 49,853 | |||
Restricted cash | 115 | 17 | 115 | |||
Accounts receivable | 141,705 | 20,609 | 49,561 | |||
Prepayments and other current assets | 64,532 | 9,386 | 29,637 | |||
Amounts due from the Company and its subsidiaries | 3,965 | 577 | 3,806 | |||
Amounts due from related parties | 2,848 | 414 | 1,186 | |||
Total current assets | 244,928 | 35,623 | 134,158 | |||
Non-current assets: | ||||||
Long-term investments | 71,512 | 10,401 | 10,000 | |||
Other receivables-non current | 2,529 | 368 | 1,354 | |||
Property and equipment, net | 46,271 | 6,730 | 24,258 | |||
Intangible assets, net | 1,406 | 204 | 283 | |||
Long-term prepayment | 11,000 | 1,600 | ||||
Total non-current assets | 132,718 | 19,303 | 35,895 | |||
Total assets | 377,646 | 54,926 | 170,053 | |||
Current liabilities: | ||||||
Accounts payable | 18,683 | 2,717 | 8,340 | |||
Deferred revenue and customer deposits | 55,625 | 8,091 | 48,085 | |||
Accrued liabilities and other current liabilities | 59,556 | 8,662 | 31,631 | |||
Amounts due to the Company and its subsidiaries | 15,534 | 2,259 | 39,861 | |||
Amount due to related parties | 8,864 | 1,289 | 459 | |||
Total current liabilities | 158,262 | 23,018 | 128,376 | |||
Non-current liabilities: | ||||||
Amounts due to the Company and its subsidiaries | 240,000 | 34,907 | 60,000 | |||
Other non-current liabilities | 140 | 20 | 216 | |||
Deferred tax liabilities | 0 | 0 | 5 | |||
Deferred revenue and customer deposits | 0 | 0 | 330 | |||
Total non-current liabilities | 240,140 | 34,927 | 60,551 | |||
Total liabilities | ¥ 398,402 | $ 57,945 | ¥ 188,927 |
Organization and Principal Ac_4
Organization and Principal Activities - Summary of Results of Operations and Cash Flows of VIE (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Cost of revenues | ¥ (517,074) | $ (75,205) | ¥ (213,370) | ¥ (47,722) |
Net income/(loss) | (66,197) | (9,627) | (90,291) | (61,382) |
Net cash used in operating activities | (97,925) | (14,241) | (75,532) | (42,152) |
Net cash used in investing activities | (139,206) | (20,246) | (28,644) | (29,928) |
Net cash provided by financing activities | 614,884 | 89,431 | 217,446 | 135,348 |
VIE | ||||
Variable Interest Entity [Line Items] | ||||
Revenues | 709,594 | 103,206 | 284,348 | 70,148 |
Cost of revenues | (499,589) | (72,662) | (206,789) | (47,559) |
Net income/(loss) | (16,785) | (2,441) | (40,003) | 18,681 |
Net cash used in operating activities | (68,316) | (9,936) | (51,016) | 7,590 |
Net cash used in investing activities | (104,675) | (15,224) | ¥ (10,000) | |
Net cash provided by financing activities | ¥ 154,901 | $ 22,529 | ¥ 1,000 |
Organization and Principal Ac_5
Organization and Principal Activities - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
VIE | |||
Variable Interest Entity [Line Items] | |||
Net liabilities | ¥ 20,756 | $ 3,019 | ¥ 18,874 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Mar. 01, 2017USD ($)shares | Dec. 31, 2018CNY (¥)SupplierSegment¥ / $shares | Dec. 31, 2018USD ($)SupplierSegmentshares | Dec. 31, 2017CNY (¥)Supplier | Dec. 31, 2017USD ($)Supplier | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($)¥ / $ | Nov. 20, 2018USD ($) | Apr. 17, 2018CNY (¥) | Dec. 31, 2017USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Foreign currency exchange rate | ¥ / $ | 6.8755 | 6.8755 | ||||||||
Impairment of long-lived assets other than goodwill | ¥ 0 | ¥ 0 | ¥ 0 | |||||||
Debt issuance costs | ¥ 8,436,000 | $ 1,227,000 | ¥ 8,436,000 | |||||||
Value added tax percentage | 6.00% | 6.00% | ||||||||
Share split, ratio | 0.1 | |||||||||
Share split, description | 1 for 10 share split | 1 for 10 share split | ||||||||
Share repurchased cash consideration | ¥ 3,165,000 | |||||||||
Research and development cost, capitalized | 0 | |||||||||
Advertising expenses | ¥ 6,697,000 | $ 974,000 | ¥ 5,277,000 | 10,377,000 | ||||||
Profit sharing program, recognized period | 5 years | 5 years | ||||||||
Capital leases | ¥ 0 | |||||||||
Employee defined contribution plan expense incurred | ¥ 11,301,000 | $ 1,644,000 | 12,121,000 | 5,455,000 | ||||||
Appreciation of the US$ against RMB, percent | 4.79% | 4.79% | ||||||||
Number of reportable segment | Segment | 1 | 1 | ||||||||
Revenues | ¥ 714,141,000 | $ 103,868,000 | ¥ 284,709,000 | ¥ 70,322,000 | ||||||
Product Concentration Risk | Suppliers | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk, percentage | 81.30% | 81.30% | 50.90% | 50.90% | ||||||
Advertising | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Number of suppliers | Supplier | 3 | 3 | 3 | 3 | ||||||
CHINA | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash and cash equivalents, restricted cash and short-term investments | ¥ 331,374,000 | ¥ 82,609,000 | 48,198,000 | |||||||
Outside China | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash and cash equivalents, restricted cash and short-term investments | ¥ 245,303,000 | 35,678,000 | $ 19,232,000 | |||||||
Maximum | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Revenues | $ | $ 1,070,000,000 | |||||||||
American Depositary Shares | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Share repurchased under repurchase plan | shares | 69,455 | 69,455 | 69,455 | |||||||
Share repurchased cash consideration | $ | $ 468,000 | |||||||||
American Depositary Shares | Maximum | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Share repurchase plan, authorized amount | $ | $ 10,000,000 | $ 10,000,000 | ||||||||
Class A Common Shares | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Share repurchased under repurchase plan | shares | 46,303 | 46,303 | 46,303 | |||||||
Convertible Notes | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Debt issuance costs | ¥ 8,436,000 | $ 1,275,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold Improvements | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives | over the shorter of lease terms or estimated useful lives of the assets |
Minimum | Computer Equipment | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives | 3 years |
Minimum | Furniture and Fixtures | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives | 3 years |
Maximum | Computer Equipment | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives | 5 years |
Maximum | Furniture and Fixtures | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Finite Lived Intangible Assets Estimated Economic Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Computer software and systems | 1 year |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Computer software and systems | 3 years |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Receivables [Abstract] | |||
Accounts receivable | ¥ 151,219 | $ 21,994 | ¥ 53,056 |
Less: allowance for doubtful accounts | (9,308) | (1,354) | (3,462) |
Total accounts receivable, net | ¥ 141,911 | $ 20,640 | ¥ 49,594 |
Accounts Receivable, Net - Sc_2
Accounts Receivable, Net - Schedule of Movement in Allowance for Doubtful Accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Receivables [Abstract] | |||
Beginning balance | ¥ 3,462 | $ 504 | ¥ 1,035 |
Provisions | 6,389 | 929 | 2,427 |
Write-offs | (543) | (79) | |
Ending balance | ¥ 9,308 | $ 1,354 | ¥ 3,462 |
Prepayment and Other Current _3
Prepayment and Other Current Assets - Schedule of Prepayment and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepaid media cost | ¥ 54,937 | $ 7,990 | ¥ 19,610 |
Prepaid service fee | 6,804 | 989 | 1,762 |
Others | 18,837 | 2,740 | 12,856 |
Total prepayment and other current assets | ¥ 80,578 | $ 11,719 | ¥ 34,228 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Less: Accumulated depreciation | ¥ (30,576) | $ (4,447) | ¥ (13,739) |
Property and equipment, net | 92,874 | 13,508 | 53,023 |
Office Furniture and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 4,920 | 716 | 2,647 |
Computer Equipment and Servers | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 111,274 | 16,184 | 63,326 |
Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | ¥ 7,256 | $ 1,055 | ¥ 789 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) ¥ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | |
Property Plant And Equipment [Abstract] | ||||||
Fixed assets impairment charges | $ 0 | $ 0 | $ 0 | |||
Depreciation of property and equipment | ¥ 18,084 | $ 2,630,000 | ¥ 8,805 | ¥ 3,433 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Computer software and systems | ¥ 1,874 | $ 273 | ¥ 319 |
Less: Accumulated amortization | (343) | (50) | (36) |
Total intangible assets, net | ¥ 1,531 | $ 223 | ¥ 283 |
Intangible Assets - Additional
Intangible Assets - Additional Infomation (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Impairment charges | ¥ 0 | ¥ 0 | ¥ 0 | |
Amortization of intangible assets | 307,000 | $ 45 | 35,000 | ¥ 0 |
Intangible assets with an indefinite useful life | ¥ 0 | ¥ 0 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Amortization Expense Related to the Existing Intangible Assets (Details) - Dec. 31, 2018 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
For the year ending December 31, 2019 | ¥ 749 | $ 109 |
2020 | 464 | 67 |
2021 | ¥ 318 | $ 47 |
Schedule of Long-Term Investmen
Schedule of Long-Term Investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Investments Debt And Equity Securities [Abstract] | |||
Cost method investments | ¥ 79,696 | $ 11,591 | ¥ 10,980 |
Total | ¥ 79,696 | $ 11,591 | ¥ 10,980 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Schedule Of Investments [Line Items] | ||||||
Cost method investments | ¥ 79,696 | ¥ 10,980 | $ 11,591 | |||
Impairment losses | ¥ 0 | ¥ 0 | ¥ 0 | |||
Zhuoxuan | ||||||
Schedule Of Investments [Line Items] | ||||||
Percentage of share acquired | 5.93% | 5.93% | ||||
Cost method investments | ¥ 5,438 | $ 792 | ||||
Mengxiang | ||||||
Schedule Of Investments [Line Items] | ||||||
Percentage of share acquired | 13.80% | 13.80% | ||||
Cost method investments | ¥ 21,512 | $ 3,134 | ||||
Qianhai | ||||||
Schedule Of Investments [Line Items] | ||||||
Percentage of share acquired | 10.00% | 10.00% | ||||
Cost method investments | ¥ 40,000 | $ 5,828 | ||||
Skymind | ||||||
Schedule Of Investments [Line Items] | ||||||
Cost method investments | ¥ 1,716 | ¥ 980 | $ 250 | $ 150 | ||
Percentage of company held share capital | 1.19% | 1.19% | ||||
Shuwei | ||||||
Schedule Of Investments [Line Items] | ||||||
Percentage of share acquired | 4.27% | 6.25% | 4.27% | 6.25% | ||
Cost method investments | ¥ 10,000 | $ 1,457 |
Deferred Revenue and Customer_3
Deferred Revenue and Customer Deposits (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Revenue Recognition And Deferred Revenue [Abstract] | |||||
Deferred revenue | ¥ 33,067 | $ 4,809 | ¥ 28,921 | ||
Customer deposits | 26,416 | 3,842 | 20,636 | $ 3,001 | ¥ 6,064 |
Total deferred revenue and customer deposits — current | 59,483 | 8,651 | 49,557 | ||
Deferred revenue — non-current | ¥ 10,265 | $ 1,493 | ¥ 330 |
Deferred Revenue and Customer_4
Deferred Revenue and Customer Deposits - Roll Forward of Customer Deposits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Revenue Recognition And Deferred Revenue [Abstract] | |||
Balance at beginning of year | ¥ 20,636 | $ 3,001 | ¥ 6,064 |
Cash received from customers during the year | 407,630 | 59,287 | 129,555 |
Revenue recognized during the year | (397,488) | (57,812) | (112,770) |
Refunds paid during the year | (4,362) | (634) | (2,213) |
Balance at end of year | ¥ 26,416 | $ 3,842 | ¥ 20,636 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Payables And Accruals [Abstract] | |||
Accrued payroll and welfare payables | ¥ 51,607 | $ 7,506 | ¥ 38,704 |
Other taxes and surcharge | 11,277 | 1,640 | 2,676 |
Service fees | 11,130 | 1,619 | 560 |
Acquisition of fixed assets | 104 | 15 | 9,731 |
Others | 2,548 | 371 | 968 |
Total accrued liabilities and other current liabilities | ¥ 76,666 | $ 11,151 | ¥ 52,639 |
Contingently Redeemable Conve_3
Contingently Redeemable Convertible Preferred Shares - Additional information (Details) $ / shares in Units, $ in Thousands | Oct. 05, 2017USD ($)$ / sharesshares | Oct. 31, 2016USD ($)$ / sharesshares | Apr. 01, 2016USD ($)$ / sharesshares | May 13, 2015USD ($)$ / sharesshares | Jan. 21, 2015USD ($)$ / sharesshares | Nov. 18, 2014USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) | Dec. 31, 2018$ / shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Temporary Equity [Line Items] | ||||||||||
Preferred shares dividends declared | $ / shares | $ 0 | |||||||||
Common shares issued upon the conversion of the preferred shares | 50.00% | 50.00% | ||||||||
Accretion charge | ¥ | ¥ 24,094,000 | ¥ 26,391,000 | ||||||||
Preferred shares to common shares, conversion date | Jul. 26, 2018 | |||||||||
Maximum | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Equity classified preferred shares modification percentage | 10.00% | 10.00% | ||||||||
Minimum | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Equity classified preferred shares modification percentage | 10.00% | 10.00% | ||||||||
Series C Preferred Share Agreement | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Performance ratchet description | Performance Ratchet” whereby if the Company’s PRC GAAP audited revenue was less than (i) RMB80,000 in 2016, or (ii) RMB120,000 in 2017, Weidong Luo and the Company shall compensate the Series C investors in accordance to the specified formula | |||||||||
Audited revenue required for compensation to investors | ¥ | ¥ 120,000 | ¥ 80,000 | ||||||||
Liquidation Preference | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Acquisition voting power | 50.00% | 50.00% | ||||||||
Mandra iBased Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Common shares issued upon the conversion of the preferred shares | 20.00% | 20.00% | ||||||||
Series A-1 Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued per share | $ / shares | $ 0.36 | |||||||||
Total consideration | $ | $ 2,000 | |||||||||
Series A-1 Preferred Shares | IDG-Accel China Growth Fund III L.P | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 5,187,780 | |||||||||
Series A-1 Preferred Shares | IDG-Accel China III Investors L.P | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 367,780 | |||||||||
Series A-2 Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued per share | $ / shares | $ 0.36 | |||||||||
Total consideration | $ | $ 2,000 | |||||||||
Series A-2 Preferred Shares | IDG-Accel China Growth Fund III L.P | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 2,593,890 | |||||||||
Series A-2 Preferred Shares | IDG-Accel China III Investors L.P | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 183,890 | |||||||||
Series A-2 Preferred Shares | Elite Bright International Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 1,388,890 | |||||||||
Series A-2 Preferred Shares | Mandra iBase Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 1,388,890 | |||||||||
Series B Preferred Share | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued per share | $ / shares | $ 0.95 | |||||||||
Total consideration | $ | $ 7,500 | |||||||||
Series B Preferred Share | IDG-Accel China Growth Fund III L.P | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 494,070 | |||||||||
Series B Preferred Share | IDG-Accel China III Investors L.P | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 35,030 | |||||||||
Series B Preferred Share | Elite Bright International Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 529,100 | |||||||||
Series B Preferred Share | Mandra iBase Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 529,100 | |||||||||
Series B Preferred Share | Greatest Investments Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 6,349,210 | |||||||||
Series C-1 Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued per share | $ / shares | $ 4.73 | |||||||||
Total consideration | $ | $ 11,111 | |||||||||
Series C-1 Preferred Shares | Greatest Investments Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 235,160 | |||||||||
Series C-1 Preferred Shares | Shenzhen Guohai Chuangxin Investment Management Limited Corporation | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 2,116,400 | |||||||||
Series C Two Contingent Redeemable Convertible Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued per share | $ / shares | $ 4.73 | |||||||||
Total consideration | $ | $ 12,000 | |||||||||
Series C Two Contingent Redeemable Convertible Preferred Shares | Mandra iBase Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 634,920 | |||||||||
Series C Two Contingent Redeemable Convertible Preferred Shares | T.C.L. Industries Holdings (H.K.) Ltd | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 1,693,120 | |||||||||
Series C Two Contingent Redeemable Convertible Preferred Shares | Genesis Ventures Limited | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 211,640 | |||||||||
Series C Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Liquidation preference as percentage of issue price | 100.00% | |||||||||
Liquidation preference | plus an annual simple return of 10% accrued thereon and plus all declared but unpaid dividend, in preference to any distribution to the holders of the Series B and A preferred shares | |||||||||
Series C Preferred Shares | Liquidation Preference | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Preferred stock annual simple return percentage | 10.00% | |||||||||
Series B Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Liquidation preference as percentage of issue price | 125.00% | |||||||||
Liquidation preference | After the payment to the holders of Series C preferred shares, the holders of Series B preferred shares are entitled to receive an amount equal to 125% of the Series B Issue Price, plus an annual compounded return of 6% accrued thereon and plus all declared but unpaid dividend, in preference to any distribution to the holders of the Series A preferred shares and the common shareholders of the Company. | |||||||||
Series B Preferred Shares | Liquidation Preference | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Preferred stock annual compound return percentage | 600.00% | |||||||||
Series A Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Liquidation preference as percentage of issue price | 150.00% | |||||||||
Liquidation preference | After the payment to the holders of Series C preferred shares, the holders of Series B preferred shares are entitled to receive an amount equal to 125% of the Series B Issue Price, plus an annual compounded return of 6% accrued thereon and plus all declared but unpaid dividend, in preference to any distribution to the holders of the Series A preferred shares and the common shareholders of the Company. | |||||||||
Series A Preferred Shares | Liquidation Preference | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Preferred stock annual compound return percentage | 8.00% | |||||||||
Redeemable Convertible Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Preferred stock initial conversion ratio | 100.00% | |||||||||
Series D Preferred Shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued per share | $ / shares | $ 5.40 | |||||||||
Total consideration | $ | $ 30,000 | |||||||||
Liquidation preference as percentage of issue price | 115.00% | |||||||||
Liquidation preference | The holders of Series D preferred shares are entitled to receive an amount equal to 115% of the Series D Issue Price, plus all declared but unpaid dividend, in preference to any distribution to the holders of the Series C, B and A preferred shares and the common shareholders of the Company. | |||||||||
Series D Preferred Shares | Fidelity Investment Funds | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 28,062 | |||||||||
Series D Preferred Shares | Fidelity China Special Situations PLC | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 2,441,572 | |||||||||
Series D Preferred Shares | Fidelity Funds | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Shares issued | 3,089,853 |
Contingently Redeemable Conve_4
Contingently Redeemable Convertible Preferred Shares - Schedule of Movement in Carrying Value of Convertible Preferred Shares (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
Beginning balance | ¥ 466,637 | ¥ 220,539 |
Issuance cost of preferred shares | (7,223) | |
Accretion of Preferred Shares | 24,094 | 26,391 |
Redemption of Preferred Shares | (57,234) | |
Concertion to Common Shares | (433,497) | |
Ending balance | 466,637 | |
Series A | ||
Class Of Stock [Line Items] | ||
Beginning balance | 26,979 | 26,804 |
Accretion of Preferred Shares | 1,463 | 175 |
Concertion to Common Shares | (28,442) | |
Ending balance | 26,979 | |
Series B | ||
Class Of Stock [Line Items] | ||
Beginning balance | 52,723 | 52,044 |
Accretion of Preferred Shares | 4,137 | 679 |
Concertion to Common Shares | (56,860) | |
Ending balance | 52,723 | |
Series C | ||
Class Of Stock [Line Items] | ||
Beginning balance | 168,317 | 141,691 |
Issuance of preferred shares | 20,571 | |
Accretion of Preferred Shares | 7,441 | 6,055 |
Redemption of Preferred Shares | (57,234) | |
Concertion to Common Shares | (118,524) | |
Ending balance | 168,317 | |
Series D | ||
Class Of Stock [Line Items] | ||
Beginning balance | 218,618 | |
Issuance of preferred shares | 206,359 | |
Issuance cost of preferred shares | (7,223) | |
Accretion of Preferred Shares | 11,053 | 19,482 |
Concertion to Common Shares | ¥ (229,671) | |
Ending balance | ¥ 218,618 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Mar. 01, 2017shares | Jul. 23, 2014shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($)shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value of awards vested expenses recognized | ¥ 24,561 | $ 3,572 | ¥ 8,275 | ¥ 2,703 | |||
Share Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value of awards vested expenses recognized | 24,561 | $ 3,572 | ¥ 8,275 | ¥ 2,703 | |||
Unrecognized share-based compensation expense | ¥ 64,099 | $ 9,323 | |||||
Restricted Share Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized share-based compensation expense estimated weighted-average period | 1 year | 1 year | |||||
Weighted average grant-date fair value per share, granted | (per share) | ¥ 54.69 | $ 7.95 | |||||
Unrecognized share-based compensation cost | ¥ 447 | $ 68 | |||||
Maximum | Share Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized share-based compensation expense estimated weighted-average period | 4 years | 4 years | |||||
Minimum | Share Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized share-based compensation expense estimated weighted-average period | 3 years | 3 years | |||||
2014 Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 4 years | ||||||
Common shares reserved for issuance | 5,500,000 | ||||||
Share available for grant | 2,420 | 2,420 | |||||
2014 Incentive Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards expiration period | 10 years | ||||||
2017 Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 4 years | ||||||
Common shares reserved for issuance | 6,015,137 | ||||||
Share available for grant | 3,467,708 | 3,467,708 | |||||
2017 Incentive Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards expiration period | 10 years | ||||||
2014 and 2017 Plans | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards expiration period | 10 years | 10 years | |||||
2014 and 2017 Plans | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 4 years | 4 years | |||||
2014 and 2017 Plans | Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Awards vesting period | 1 year | 1 year |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share Option Activity (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Outstanding, Beginning Balance | 6,366,146 | 5,472,031 | |
Number of Options, Granted | 1,736,390 | 894,115 | |
Number of Options, Forfeited | 55,520 | ||
Number of Options, Cancelled | 14,558 | ||
Number of Options, Outstanding, Ending Balance | 8,032,458 | 6,366,146 | 5,472,031 |
Number of Options, Vested and expected to vest | 8,032,458 | 6,366,146 | |
Number of Options, Exercisable | 5,185,893 | ||
Weighted-Average Exercise Price, Outstanding, Beginning Balance | ¥ 4.33 | ¥ 2.32 | |
Weighted-Average Exercise Price, Granted | 26.68 | 16.29 | |
Weighted-Average Exercise Price, Forfeited | 26.55 | ||
Weighted-Average Exercise Price, Cancelled | 6.56 | ||
Weighted-Average Exercise Price, Outstanding, Ending Balance | 9.04 | 4.33 | ¥ 2.32 |
Weighted-Average Exercise Price, Vested and expected to vest | 9.04 | 4.33 | |
Weighted-Average Exercise Price, Exercisable | 2.75 | ||
Weighted- Average grant-date Fair Value per Option, Outstanding, Beginning Balance | 3.31 | 2.13 | |
Weighted- Average grant-date Fair Value per Option, Granted | 45.72 | 10.34 | |
Weighted- Average grant-date Fair Value per Option, Forfeited | 24.69 | ||
Weighted- Average grant-date Fair Value per Option, Cancelled | 1.87 | ||
Weighted- Average grant-date Fair Value per Option, Outstanding, Ending Balance | 12.48 | 3.31 | ¥ 2.13 |
Weighted- Average grant-date Fair Value per Option, Vested and expected to vest | 12.48 | ¥ 3.31 | |
Weighted- Average grant-date Fair Value per Option, Exercisable | ¥ 3.09 | ||
Weighted Average Remaining Contractual Term (Years), Outstanding | 7 years 5 months 19 days | 7 years 2 months 15 days | 7 years 10 months 20 days |
Weighted Average Remaining Contractual Term (Years), Vested and expected to vest | 7 years 5 months 19 days | 7 years 2 months 15 days | |
Weighted Average Remaining Contractual Term (Years), Exercisable | 6 years 8 months 23 days | ||
Aggregate Intrinsic Value, Outstanding | ¥ 507,876 | ¥ 95,559 | ¥ 34,255 |
Aggregate Intrinsic Value, Vested and expected to vest | 507,876 | ¥ 95,559 | |
Aggregate Intrinsic Value, Exercisable | ¥ 360,505 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Assumptions Used to Estimate Fair Values of Share Options Granted (Details) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate, minimum | 2.27% | 2.27% | 1.83% |
Risk-free interest rate, maximum | 2.93% | 2.41% | 1.84% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 45.29% | 46.33% | 47.33% |
Expected volatility, maximum | 46.15% | 47.15% | 47.60% |
Weighted average expected volatility | 45.98% | 46.66% | 47.44% |
Expected exercise multiple | ¥ 2.5 | ¥ 2.5 | ¥ 2.5 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Share Units (Details) - Restricted Share Units - Employees and Directors ¥ / shares in Units, ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Share Units, Granted | shares | 12,550 |
Number of Share Units, Outstanding, December 31, 2018 | shares | 12,550 |
Number of Share Units, Vested and expected to vest at December 31, 2018 | shares | 12,550 |
Weighted-Average grant-date Fair Value per Option, Granted | ¥ / shares | ¥ 54.69 |
Weighted-Average grant-date Fair Value per Option, Outstanding, December 31, 2018 | ¥ / shares | 54.69 |
Weighted-Average grant-date Fair Value per Option, Vested and expected to vest at December 31, 2018 | ¥ / shares | ¥ 54.69 |
Weighted Average Remaining Contractual Term (Years), Granted | 8 months 4 days |
Weighted Average Remaining Contractual Term (Years), Outstanding, December 31, 2018 | 8 months 4 days |
Weighted Average Remaining Contractual Term (Years), Vested and expected to vest at December 31, 2018 | 8 months 4 days |
Aggregate Intrinsic Value, Granted | ¥ | ¥ 907 |
Aggregate Intrinsic Value, Outstanding, December 31, 2018 | ¥ | 907 |
Aggregate Intrinsic Value, Vested and expected to vest at December 31, 2018 | ¥ | ¥ 907 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Total Compensation Costs Recognized (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | ¥ 24,561 | $ 3,572 | ¥ 8,275 | ¥ 2,703 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | 9,448 | 1,374 | 1,408 | 664 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | 3,347 | 487 | 944 | 189 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total | ¥ 11,766 | $ 1,711 | ¥ 5,923 | ¥ 1,850 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016 | Dec. 31, 2018USD ($) | |
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets related to net operating loss carry forwards | ¥ 78,985,000 | ¥ 54,079,000 | $ 11,489 | |
Dividend withholding tax | 0 | 0 | ||
Undistributed earnings | 0 | 0 | ||
Interest and penalties related to an uncertain tax position | ¥ 0 | ¥ 0 | ||
Income tax examination, description | In general, the PRC tax authorities have up to five years to conduct examinations of the tax filings of the Company’s PRC subsidiary and the VIE. Accordingly, the PRC tax filings from 2013 through 2018 remain open to examination by the respective tax authorities. | |||
Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Open tax examination year | 2013 | |||
Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Open tax examination year | 2018 | |||
VIE | Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets operating loss carry forwards expiration year | 2019 | |||
VIE | Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets operating loss carry forwards expiration year | 2028 | |||
WFOE | Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets operating loss carry forwards expiration year | 2019 | |||
WFOE | Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets operating loss carry forwards expiration year | 2023 | |||
Hong Kong | ||||
Income Tax Disclosure [Line Items] | ||||
Effective profits tax rate | 16.50% | |||
PRC | ||||
Income Tax Disclosure [Line Items] | ||||
Effective statutory enterprise income tax rate | 25.00% | 25.00% | 25.00% | |
Effective preferential income tax rate | 15.00% | |||
Preferential income tax rate, effective period | 3 years | |||
PRC | VIE | ||||
Income Tax Disclosure [Line Items] | ||||
Effective preferential income tax rate | 15.00% | 15.00% | ||
PRC | WFOE | ||||
Income Tax Disclosure [Line Items] | ||||
Effective statutory enterprise income tax rate | 25.00% |
Income Taxes - Summary of Profi
Income Taxes - Summary of Profit / (Loss) Before Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Line Items] | ||||
Total loss before income taxes | ¥ (66,167) | $ (9,623) | ¥ (94,271) | ¥ (57,472) |
Cayman Islands | ||||
Income Tax Disclosure [Line Items] | ||||
Total loss before income taxes | 6,622 | 964 | (10,584) | (3,214) |
British Virgin Islands | ||||
Income Tax Disclosure [Line Items] | ||||
Total loss before income taxes | (25) | (4) | (2) | (4) |
Hong Kong | ||||
Income Tax Disclosure [Line Items] | ||||
Total loss before income taxes | 208 | 30 | (34) | 563 |
China | ||||
Income Tax Disclosure [Line Items] | ||||
Total loss before income taxes | ¥ (72,972) | $ (10,613) | ¥ (83,651) | ¥ (54,817) |
Income Taxes - Summary of Compo
Income Taxes - Summary of Composition of Income Tax Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ (35) | $ (5) | ||
Deferred tax (expense)/benefit | 5 | 1 | ¥ 3,980 | ¥ (3,910) |
Total income tax (expense)/benefit | ¥ (30) | $ (4) | ¥ 3,980 | ¥ (3,910) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation Between Expenses of Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Total loss before income taxes | ¥ (66,167) | $ (9,623) | ¥ (94,271) | ¥ (57,472) |
Income tax expense computed at PRC statutory rate | (16,542) | (2,408) | (23,569) | |
International tax rate differential | (1,668) | (243) | 2,650 | |
Preferential tax rate | 6,397 | 930 | 4,004 | |
Deferred tax items tax rate differential | (6,390) | (929) | (4,951) | |
Research and development super-deduction | (21,559) | (3,134) | (7,787) | |
Non-deductible expenses | 5,701 | 829 | 1,482 | |
Outside basis differences | (7,475) | |||
Deferred tax expense | 4,073 | 592 | ||
Changes in valuation allowance | 30,018 | 4,367 | 31,666 | |
Income tax expense/(benefit) | ¥ 30 | $ 4 | ¥ (3,980) | ¥ 3,910 |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation Between Expenses of Income Taxes (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PRC | |||
Income Tax Disclosure [Line Items] | |||
Effective statutory enterprise income tax rate | 25.00% | 25.00% | 25.00% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Deferred tax assets, net | |||
Provision for doubtful debts | ¥ 2,463 | $ 358 | ¥ 866 |
Accrued expense | 3,737 | 543 | 231 |
Net operating loss carry forward | 78,985 | 11,489 | 54,079 |
Government grant related to assets | 54 | 8 | 69 |
Fixed assets depreciation | 14 | 2 | |
Estimated liabilities | 10 | 2 | |
Valuation allowance | ¥ (85,263) | $ (12,401) | (55,245) |
Deferred tax liabilities | |||
Fixed assets depreciation | 5 | ||
Total deferred tax liabilities | ¥ 5 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($)$ / shares | Apr. 17, 2018CNY (¥) | Apr. 17, 2018USD ($)$ / shares | |
Convertible Notes [Line Item] | |||||
Aggregate principal amount | ¥ 240,212 | $ 34,937 | ¥ 219,699 | ||
Initial offering period | no qualified IPO were to occur within two years of the issue date, the outstanding obligation at their principal amount | ||||
Percentage of internal rate of return | 8.00% | ||||
Simple interest on principal | 15.00% | 15.00% | |||
Interest on internal rate of return per annum | 15.00% | ||||
Debt issuance costs | ¥ 8,436 | $ 1,227 | ¥ 8,436 | ||
Derivative liability | 3,224 | ||||
Change in fair value of current earnings | $ 3,224 | ||||
Debt issuance costs, net | ¥ 8,436 | $ 1,275 | |||
Effective interest rate | 4.69% | 4.69% | |||
BCF | |||||
Convertible Notes [Line Item] | |||||
Issuance price | $ / shares | $ 11.76 | ||||
Fair value per ordinary share | $ / shares | $ 9.87 | ||||
Zero Coupon Convertible Notes (the “Convertible Notes”) Due 2021 | |||||
Convertible Notes [Line Item] | |||||
Conversion price per share | $ / shares | $ 11.76 | ||||
Debt issuance costs | $ 1,275 | ||||
Zero Coupon Convertible Notes (the “Convertible Notes”) Due 2021 | Existing Investor | |||||
Convertible Notes [Line Item] | |||||
Aggregate principal amount | $ 35,000 |
Convertible Notes - Summary of
Convertible Notes - Summary of Principal Amount, Debt Issuance Costs and Derivative Liability (Details) ¥ in Thousands, $ in Thousands | 8 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Apr. 17, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Convertible Notes [Line Item] | ||||||
Principal amount | ¥ 240,212 | ¥ 240,212 | $ 34,937 | ¥ 219,699 | ||
Issuance costs | (8,436) | (8,436) | (1,227) | (8,436) | ||
Contingent redemption feature | (15,597) | (15,597) | (2,268) | (19,805) | ||
Convertible notes | 216,179 | 216,179 | 31,442 | 191,458 | ||
Derivative liability | 20,237 | |||||
Total | 216,179 | 216,179 | $ 31,442 | ¥ 211,695 | ¥ 0 | |
Charge to profit and loss | (21,302) | (21,302) | $ (3,098) | |||
Foreign Currency Translation Adjustment | ||||||
Convertible Notes [Line Item] | ||||||
Principal amount | 20,513 | 20,513 | ||||
Contingent redemption feature | 4,208 | 4,208 | ||||
Convertible notes | 24,721 | 24,721 | ||||
Derivative liability | 1,065 | 1,065 | ||||
Total | ¥ 25,786 | ¥ 25,786 |
Convertible Notes - Summary o_2
Convertible Notes - Summary of Aggregate Future Principal Payments for the Convertible Notes (Details) - Dec. 31, 2018 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Debt Disclosure [Abstract] | ||
2 years to 3 years (Including 3 years) | ¥ 240,212 | $ 35,000 |
Total | ¥ 240,212 | $ 35,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | |||||
Operating lease, expenses | ¥ 12,120 | $ 1,763 | ¥ 6,081 | ¥ 3,113 | |
Bandwidth | |||||
Commitments And Contingencies Disclosure [Line Items] | |||||
Future minimum payment under non-cancellable purchase commitment payment period | 1 year | 1 year | |||
Future minimum payment under non-cancellable purchase commitment | ¥ 1,744 | $ 254 | |||
Consulting Service for Lease Term within One Year | |||||
Commitments And Contingencies Disclosure [Line Items] | |||||
Future minimum payment under non-cancellable purchase commitment payment period | 1 year | 1 year | |||
Future minimum payment under non-cancellable purchase commitment | ¥ 7,008 | 1,019 | |||
Consulting Service for Lease Term within Two Year | |||||
Commitments And Contingencies Disclosure [Line Items] | |||||
Future minimum payment under non-cancellable purchase commitment payment period | 2 years | 2 years | |||
Future minimum payment under non-cancellable purchase commitment | ¥ 271 | $ 39 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancellable Operating Leases (Details) - Dec. 31, 2018 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments And Contingencies Disclosure [Abstract] | ||
2019 | ¥ 13,387 | $ 1,947 |
2020 | 10,573 | 1,538 |
2021 | 4,613 | 671 |
2022 and thereafter | 4,478 | 651 |
Total | ¥ 33,051 | $ 4,807 |
Share Capital - Additional Info
Share Capital - Additional Information (Details) | Jul. 26, 2018shares | Apr. 11, 2018USD ($)shares | Mar. 01, 2017USD ($)shares | Dec. 31, 2018shares | Nov. 20, 2018USD ($) | Aug. 30, 2018shares | Jun. 27, 2018USD ($)shares | Dec. 31, 2017shares |
Share Capital [Line Items] | ||||||||
Common shares, value authorized | $ | $ 500,000 | |||||||
Common shares, shares authorized | 50,000,000 | 5,000,000,000 | 470,393,343 | |||||
Common shares, shares outstanding | 42,666,670 | 0 | 42,666,670 | |||||
Preferred stock, shares outstanding | 27,867,937 | 27,867,937 | ||||||
Share split, ratio | 0.1 | |||||||
Common shares, shares issued | 0 | 42,666,670 | ||||||
IPO | American Depositary Shares | ||||||||
Share Capital [Line Items] | ||||||||
Shares issued | 9,060,000 | |||||||
Preferred Stock | IPO | ||||||||
Share Capital [Line Items] | ||||||||
Share split, ratio | 1 | |||||||
Common Stock | ||||||||
Share Capital [Line Items] | ||||||||
Shares issued | 6,059,708 | |||||||
Share repurchased under repurchase plan | 46,303 | |||||||
Common Stock | IPO | ||||||||
Share Capital [Line Items] | ||||||||
Share split, ratio | 1 | |||||||
Series C Contingently Redeemable Convertible Preferred Shares | T.C.L. Industries Holdings (H.K.) Ltd | ||||||||
Share Capital [Line Items] | ||||||||
Redemption of preferred shares | 1,738,720 | |||||||
Redemption of preferred shares, value | $ | $ 9,049,000,000 | |||||||
Class A Common Shares | ||||||||
Share Capital [Line Items] | ||||||||
Common shares, shares authorized | 4,920,000,000 | 0 | ||||||
Common shares, shares outstanding | 59,547,823 | 0 | ||||||
Common shares, shares issued | 59,547,823 | 0 | ||||||
Share repurchased under repurchase plan | 46,303 | 46,303 | ||||||
Class A Common Shares | IPO | ||||||||
Share Capital [Line Items] | ||||||||
Preferred stock, shares issued upon conversion | 27,867,937 | |||||||
Conversion of stock, shares issued | 25,666,481 | |||||||
Class A Common Shares | IPO | American Depositary Shares | ||||||||
Share Capital [Line Items] | ||||||||
Shares issued | 6,040,000 | |||||||
Class A Common Shares | Over-Allotment Option | ||||||||
Share Capital [Line Items] | ||||||||
Common shares, shares issued | 19,708 | |||||||
Class B Common Shares | ||||||||
Share Capital [Line Items] | ||||||||
Common shares, shares authorized | 30,000,000 | 0 | ||||||
Common shares, shares outstanding | 17,000,189 | 0 | ||||||
Common shares, shares issued | 17,000,189 | 0 | ||||||
Class B Common Shares | IPO | ||||||||
Share Capital [Line Items] | ||||||||
Conversion of stock, shares issued | 17,000,189 | |||||||
American Depositary Shares | ||||||||
Share Capital [Line Items] | ||||||||
Share repurchased under repurchase plan | 69,455 | 69,455 | ||||||
American Depositary Shares | Maximum | ||||||||
Share Capital [Line Items] | ||||||||
Share repurchase plan, authorized amount | $ | $ 10,000,000 | $ 10,000,000 |
Share Capital - Basic and Dilut
Share Capital - Basic and Diluted Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss attributable to Aurora Mobile Limited’s shareholders | ¥ (66,197) | $ (9,627) | ¥ (90,291) | ¥ (61,382) |
Accretion of contingently redeemable convertible preferred shares | (24,094) | (3,504) | (26,391) | (12,427) |
Net loss attributable to common shareholders | (90,291) | (13,131) | ¥ (116,682) | ¥ (73,809) |
Shares used in net loss per share computation: | ||||
Common shares - basic and diluted | 42,666,670 | 42,666,670 | ||
Common shares - basic and diluted | ¥ / shares | ¥ (2.73) | ¥ (1.73) | ||
Class A Common Shares | ||||
Numerator: | ||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (46,606) | (6,779) | ||
Accretion of contingently redeemable convertible preferred shares | (16,963) | (2,467) | ||
Net loss attributable to common shareholders | ¥ (63,569) | $ (9,246) | ||
Shares used in net loss per share computation: | ||||
Common shares - basic and diluted | 40,441,999 | 40,441,999 | ||
Common shares - basic and diluted | (per share) | ¥ (1.57) | $ (0.23) | ||
Class B Common Shares | ||||
Numerator: | ||||
Net loss attributable to Aurora Mobile Limited’s shareholders | ¥ (19,591) | $ (2,848) | ||
Accretion of contingently redeemable convertible preferred shares | (7,131) | (1,037) | ||
Net loss attributable to common shareholders | ¥ (26,722) | $ (3,885) | ||
Shares used in net loss per share computation: | ||||
Common shares - basic and diluted | 17,000,189 | 17,000,189 | ||
Common shares - basic and diluted | (per share) | ¥ (1.57) | $ (0.23) |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Amount Due From Related Party (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Related Party Transaction [Line Items] | ||||
Total amounts due from related parties | ¥ 4,564 | $ 664 | ¥ 1,260 | ¥ 95 |
Focus Axis Limited | ||||
Related Party Transaction [Line Items] | ||||
Total amounts due from related parties | 17 | 2 | ||
K K Mobile Limited | ||||
Related Party Transaction [Line Items] | ||||
Total amounts due from related parties | 40 | 26 | ||
Stable View Limited | ||||
Related Party Transaction [Line Items] | ||||
Total amounts due from related parties | 17 | 2 | ||
Shenzhen Weixunyitong Information Technology Co Ltd | ||||
Related Party Transaction [Line Items] | ||||
Total amounts due from related parties | 1,543 | 224 | 886 | ¥ 65 |
Guangzhou Tianlang Network Technology Co Ltd | ||||
Related Party Transaction [Line Items] | ||||
Total amounts due from related parties | 1,305 | 190 | ¥ 300 | |
President | ||||
Related Party Transaction [Line Items] | ||||
Total amounts due from related parties | ¥ 1,716 | $ 250 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Amount Due to Related Party (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Related Party Transaction [Line Items] | ||||
Amount due to related parties | ¥ 8,864 | $ 1,289 | ¥ 6,110 | ¥ 6,353 |
Weidong Luo | ||||
Related Party Transaction [Line Items] | ||||
Amount due to related parties | 5,649 | 5,649 | ||
Shenzhen Weixunyitong Information Technology Co Ltd | ||||
Related Party Transaction [Line Items] | ||||
Amount due to related parties | ¥ 8,864 | $ 1,289 | ¥ 461 | 504 |
Guangzhou Tianlang Network Technology Co Ltd | ||||
Related Party Transaction [Line Items] | ||||
Amount due to related parties | ¥ 200 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Transactions With Related Parties (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Services provided to related party | ¥ 2,544 | ¥ 3,507 | ¥ 344 | $ 366 | |
Total | 21,384 | $ 3,110 | 2,229 | 2,496 | |
Shenzhen Weixunyitong Information Technology Co Ltd | |||||
Related Party Transaction [Line Items] | |||||
Services provided to related party | 1,002 | 2,752 | 344 | 142 | |
Services received from related party | 20,909 | 672 | 360 | 3,041 | |
Office premises leased from related party | 475 | 1,557 | 1,193 | 69 | |
Guangzhou Tianlang Network Technology Co Ltd | |||||
Related Party Transaction [Line Items] | |||||
Services provided to related party | ¥ 1,542 | ¥ 755 | $ 224 | ||
Marketing expense incurred | ¥ 943 |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | ¥ 714,141 | $ 103,868 | ¥ 284,709 | ¥ 70,322 |
Developer Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 60,106 | 8,742 | 38,795 | 23,196 |
Targeted Marketing Data Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 572,796 | 83,310 | 221,153 | 43,149 |
Other Vertical Data Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 81,239 | 11,816 | 24,761 | 3,977 |
Data Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | ¥ 654,035 | $ 95,126 | ¥ 245,914 | ¥ 47,126 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Apr. 17, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Fair Value Disclosures [Abstract] | ||||
Convertible notes (including deferred revenue of the VIE without recourse to the Company of RMB nil and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | ¥ 216,179 | $ 31,442 | ¥ 211,695 | ¥ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Redemption Feature Derivative Liability (Details) ¥ in Thousands, $ in Thousands | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Change in fair value of derivative liability | ¥ 21,302 | ¥ 21,302 | $ 3,098 |
Ending balance | $ | $ 3,224 | ||
Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative liability | 20,237 | ||
Foreign currency translation adjustment | 1,065 | ||
Change in fair value of derivative liability | 21,302 | ||
Recurring | Significant unobservable inputs (Level 3) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative liability | 20,237 | ||
Foreign currency translation adjustment | 1,065 | ||
Change in fair value of derivative liability | ¥ (21,302) |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | |
Dividends Payable [Line Items] | ||||
Threshold limit percentage of registered capital | 50.00% | |||
PRC | VIE | ||||
Dividends Payable [Line Items] | ||||
Restricted net asset, using statutory accounting principles | ¥ 787,223 | $ 114,497 | ¥ 280,922 | $ 44,786 |
Minimum | ||||
Dividends Payable [Line Items] | ||||
Minimum percentage of net profit to be allocated to statutory reserve fund | 10.00% |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event - Shanghai Liehong Information Technology Limited Company ¥ in Thousands | Mar. 04, 2019CNY (¥) |
Subsequent Event [Line Items] | |
Business acquisition, agreement date | Mar. 4, 2019 |
Business acquisition total consideration | ¥ 8,000 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company - Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Apr. 17, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Current assets: | |||||||
Cash and cash equivalents | ¥ 576,562 | $ 83,857 | ¥ 208,161 | $ 30,276 | ¥ 103,168 | ¥ 37,570 | |
Amounts due from related parties | 4,564 | 664 | 1,260 | 95 | |||
Total current assets | 803,730 | 116,897 | 293,358 | ||||
Non-current assets: | |||||||
Long-term investments | 79,696 | 11,591 | 10,980 | ||||
Intangible assets, net | 1,531 | 223 | 283 | ||||
Total non-current assets | 188,338 | 27,393 | 66,092 | ||||
Total assets | 992,068 | 144,290 | 359,450 | ||||
Current liabilities: | |||||||
Amounts due to related parties | 8,864 | 1,289 | 6,110 | 6,353 | |||
Total current liabilities | 163,824 | 23,827 | 116,646 | ||||
Non-current liabilities: | |||||||
Deferred revenue — non-current | 10,265 | 1,493 | 330 | ||||
Convertible notes (including deferred revenue of the VIE without recourse to the Company of RMB nil and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | 216,179 | 31,442 | ¥ 211,695 | 0 | |||
Total non-current liabilities | 226,584 | 32,955 | 551 | ||||
Total liabilities | 390,408 | 56,782 | 117,197 | ||||
Mezzanine equity | |||||||
Total mezzanine equity | 466,637 | 220,539 | |||||
Shareholders’ (deficit) equity | |||||||
Common shares | 26 | ||||||
Treasury shares (nil and 46,303 class A common shares as of December 31, 2017 and 2018, respectively) | (3,165) | (460) | |||||
Additional paid-in capital | 944,500 | 137,372 | 13,689 | ||||
Accumulated deficit | (348,123) | (50,632) | (234,810) | ||||
Accumulated other comprehensive loss | 8,400 | 1,221 | (3,289) | ||||
Total shareholders’ (deficit) equity | 601,660 | 87,508 | (224,384) | ¥ (108,414) | ¥ (40,204) | ||
Total liabilities, mezzanine equity and shareholders’ deficit | 992,068 | 144,290 | 359,450 | ||||
Parent Company | |||||||
Current assets: | |||||||
Cash and cash equivalents | 238,236 | 34,650 | 118,429 | ||||
Due from the entities within the Group | 7,030 | 1,022 | 6,603 | ||||
Prepayments | 2,439 | 355 | |||||
Interest receivables | 89 | 13 | |||||
Amounts due from related parties | 28 | ||||||
Other receivables | 1,717 | 251 | |||||
Total current assets | 249,511 | 36,291 | 125,060 | ||||
Non-current assets: | |||||||
Long-term investments | 590,752 | 85,921 | 126,616 | ||||
Intangible assets, net | 93 | 14 | |||||
Total non-current assets | 590,845 | 85,935 | 126,616 | ||||
Total assets | 840,356 | 122,226 | 251,676 | ||||
Current liabilities: | |||||||
Accrued liabilities and other current liabilities | 11,542 | 1,679 | 3,072 | ||||
Amounts due to the Company and its subsidiaries | 710 | 103 | 702 | ||||
Amounts due to related parties | 5,649 | ||||||
Total current liabilities | 12,252 | 1,782 | 9,423 | ||||
Non-current liabilities: | |||||||
Deferred revenue — non-current | 10,265 | 1,493 | |||||
Convertible notes (including deferred revenue of the VIE without recourse to the Company of RMB nil and RMB nil (US$ nil) as of December 31, 2017 and 2018, respectively) | 216,179 | 31,442 | |||||
Total non-current liabilities | 226,444 | 32,935 | |||||
Total liabilities | 238,696 | 34,717 | 9,423 | ||||
Mezzanine equity | |||||||
Total mezzanine equity | 466,637 | ||||||
Shareholders’ (deficit) equity | |||||||
Common shares | 26 | ||||||
Treasury shares (nil and 46,303 class A common shares as of December 31, 2017 and 2018, respectively) | (3,165) | (460) | |||||
Additional paid-in capital | 944,500 | 137,372 | 13,689 | ||||
Accumulated deficit | (348,123) | (50,632) | (234,810) | ||||
Accumulated other comprehensive loss | 8,400 | 1,221 | (3,289) | ||||
Total shareholders’ (deficit) equity | 601,660 | 87,508 | (224,384) | ||||
Total liabilities, mezzanine equity and shareholders’ deficit | 840,356 | 122,226 | 251,676 | ||||
Series A Contingently Redeemable Convertible Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 26,979 | ||||||
Series A Contingently Redeemable Convertible Preferred Shares | Parent Company | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 26,979 | ||||||
Series B Contingently Redeemable Convertible Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 52,723 | ||||||
Series B Contingently Redeemable Convertible Preferred Shares | Parent Company | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 52,723 | ||||||
Series C Contingently Redeemable Convertible Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 168,317 | ||||||
Series C Contingently Redeemable Convertible Preferred Shares | Parent Company | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 168,317 | ||||||
Series D Contingently Redeemable Convertible Preferred Shares | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | 218,618 | ||||||
Series D Contingently Redeemable Convertible Preferred Shares | Parent Company | |||||||
Mezzanine equity | |||||||
Total mezzanine equity | ¥ 218,618 | ||||||
Class A Common Shares | |||||||
Shareholders’ (deficit) equity | |||||||
Common shares | 37 | 5 | |||||
Class A Common Shares | Parent Company | |||||||
Shareholders’ (deficit) equity | |||||||
Common shares | 37 | 5 | |||||
Class B Common Shares | |||||||
Shareholders’ (deficit) equity | |||||||
Common shares | 11 | 2 | |||||
Class B Common Shares | Parent Company | |||||||
Shareholders’ (deficit) equity | |||||||
Common shares | ¥ 11 | $ 2 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2018 | Jul. 26, 2018 | Jun. 27, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Common shares, par value per share | $ 0 | $ 0.0001 | ||
Common shares, shares authorized | 50,000,000 | 5,000,000,000 | 470,393,343 | |
Common shares, shares issued | 0 | 42,666,670 | ||
Common shares, shares outstanding | 0 | 42,666,670 | 42,666,670 | |
Series A Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 11,111,120 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 11,111,120 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 11,111,120 | ||
Series B Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 7,936,510 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 7,936,510 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 7,936,510 | ||
Series C Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 4,999,540 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 4,999,540 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 4,999,540 | ||
Series D Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 5,559,487 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 5,559,487 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 5,559,487 | ||
Class A Common Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Common shares, par value per share | $ 0.0001 | $ 0 | ||
Common shares, shares authorized | 4,920,000,000 | 0 | ||
Common shares, shares issued | 59,547,823 | 0 | ||
Common shares, shares outstanding | 59,547,823 | 0 | ||
Class B Common Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Common shares, par value per share | $ 0.0001 | $ 0 | ||
Common shares, shares authorized | 30,000,000 | 0 | ||
Common shares, shares issued | 17,000,189 | 0 | ||
Common shares, shares outstanding | 17,000,189 | 0 | ||
Parent Company | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Common shares, par value per share | $ 0 | $ 0.0001 | ||
Common shares, shares authorized | 50,000,000 | 470,393,343 | ||
Common shares, shares issued | 0 | 42,666,670 | ||
Common shares, shares outstanding | 0 | 42,666,670 | ||
Treasury shares, shares | 46,303 | 0 | ||
Parent Company | Series A Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 11,111,120 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 11,111,120 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 11,111,120 | ||
Parent Company | Series B Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 7,936,510 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 7,936,510 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 7,936,510 | ||
Parent Company | Series C Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 4,999,540 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 4,999,540 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 4,999,540 | ||
Parent Company | Series D Contingently Redeemable Convertible Preferred Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Contingently redeemable convertible preferred shares, par value per share | $ 0 | $ 0.0001 | ||
Contingently redeemable convertible preferred shares, shares authorized | 0 | 5,559,487 | ||
Contingently redeemable convertible preferred shares, shares issued | 0 | 5,559,487 | ||
Contingently redeemable convertible preferred shares, shares outstanding | 0 | 5,559,487 | ||
Parent Company | Class A Common Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Common shares, par value per share | $ 0.0001 | $ 0 | ||
Common shares, shares authorized | 4,920,000,000 | 0 | ||
Common shares, shares issued | 59,547,823 | 0 | ||
Common shares, shares outstanding | 59,547,823 | 0 | ||
Parent Company | Class B Common Shares | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Common shares, par value per share | $ 0.0001 | $ 0 | ||
Common shares, shares authorized | 30,000,000 | 0 | ||
Common shares, shares issued | 17,000,189 | 0 | ||
Common shares, shares outstanding | 17,000,189 | 0 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company - Condensed Statements of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Condensed Statement Of Income Captions [Line Items] | ||||
Revenues | ¥ 714,141 | $ 103,868 | ¥ 284,709 | ¥ 70,322 |
Gross profit | 197,067 | 28,663 | 71,339 | 22,600 |
Operating expenses | ||||
Research and development | 134,358 | 19,542 | 71,651 | 33,717 |
Sales and marketing | 83,853 | 12,196 | 59,673 | 33,062 |
General and administrative | (71,641) | (10,419) | (32,431) | (13,480) |
Total operating expenses | (289,852) | (42,157) | (163,755) | (80,259) |
Loss from operations | (92,785) | (13,494) | (92,416) | (57,659) |
Foreign exchange loss, net | (11,689) | (1,700) | (339) | 369 |
Interest income | 3,657 | 532 | 314 | 283 |
Interest expense | (7,054) | (1,026) | (122) | |
Loss before income taxes | (66,167) | (9,623) | (94,271) | (57,472) |
Income tax expenses | 30 | 4 | (3,980) | 3,910 |
Net Loss | (66,197) | (9,627) | (90,291) | (61,382) |
Accretion of contingently redeemable convertible preferred shares | (24,094) | (3,504) | (26,391) | (12,427) |
Net loss attributable to common shareholders | (90,291) | (13,131) | (116,682) | (73,809) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 11,688 | 1,700 | (7,563) | 1,896 |
Comprehensive loss | (54,509) | (7,927) | (97,854) | (59,486) |
Parent Company | ||||
Operating expenses | ||||
General and administrative | (11,941) | (1,737) | (10,076) | (2,302) |
Share of losses of subsidiaries and the VIE | (72,750) | (10,581) | (79,916) | (58,167) |
Total operating expenses | (84,691) | (12,318) | (89,992) | (60,469) |
Loss from operations | (84,691) | (12,318) | (89,992) | (60,469) |
Foreign exchange loss, net | (186) | (27) | (339) | (961) |
Interest income | 3,013 | 438 | 18 | 48 |
Interest expense | (6,599) | (960) | ||
Other income | 22,266 | 3,238 | 22 | |
Loss before income taxes | (66,197) | (9,629) | (90,291) | (61,382) |
Net Loss | (66,197) | (9,629) | (90,291) | (61,382) |
Accretion of contingently redeemable convertible preferred shares | 44,451 | 6,465 | (26,391) | (12,427) |
Net loss attributable to common shareholders | (21,746) | (3,164) | (116,682) | (73,809) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 29,510 | 4,292 | (7,563) | 1,896 |
Total other comprehensive income (loss), net of tax | 29,510 | 4,292 | (7,563) | 1,896 |
Comprehensive loss | ¥ (36,687) | $ (5,337) | ¥ (97,854) | ¥ (59,486) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Condensed Cash Flow Statements Captions [Line Items] | ||||
Net cash used in operating activities | ¥ (97,925) | $ (14,241) | ¥ (75,532) | ¥ (42,152) |
Net cash used in investing activities | (139,206) | (20,246) | (28,644) | (29,928) |
Net cash provided by financing activities | 614,884 | 89,431 | 217,446 | 135,348 |
Effect of exchange rate changes | (9,352) | (1,362) | (8,282) | 2,450 |
Net increase in cash and cash equivalents and restricted cash | 368,401 | 53,582 | 104,988 | 65,718 |
Cash, cash equivalents and restricted cash at the beginning of year | 208,276 | 30,292 | 103,288 | 37,570 |
Cash, cash equivalents and restricted cash at the end of year | 576,677 | 83,874 | 208,276 | 103,288 |
Parent Company | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Net cash used in operating activities | 16,052 | 2,335 | (744) | (2,311) |
Net cash used in investing activities | (535,995) | (77,957) | (157,412) | (77,193) |
Net cash provided by financing activities | 614,884 | 89,431 | 217,446 | 134,348 |
Effect of exchange rate changes | 24,866 | 3,617 | (7,695) | 2,649 |
Net increase in cash and cash equivalents and restricted cash | 119,807 | 17,426 | 51,595 | 57,493 |
Cash, cash equivalents and restricted cash at the beginning of year | 118,429 | 17,224 | 66,834 | 9,341 |
Cash, cash equivalents and restricted cash at the end of year | ¥ 238,236 | $ 34,650 | ¥ 118,429 | ¥ 66,834 |