☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange On Which Registered | ||
American depositary shares, each representing one Class Z ordinary share | BILI | Nasdaq Global Select Market | ||
Class Z ordinary shares, par value US$0.0001 per share* | Nasdaq Global Select |
* | Not for trading, but only in connection with the listing on the Nasdaq Global Select Market of American depositary shares. |
Large accelerated filer ☒ | Accelerated filer ☐ | Non-accelerated filer ☐ | Emerging growth company ☐ |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP ☒ | International Financial Reporting Standards as issued | Other ☐ | ||||||
by the International Accounting Standards Board ☐ | ||||||||
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A. | Selected Financial Data |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share and per share data) | ||||||||||||||||||||||||
Selected Consolidated Statements of Operations and Comprehensive Loss Data: | ||||||||||||||||||||||||
Net revenues | 130,996 | 523,310 | 2,468,449 | 4,128,931 | 6,777,922 | 973,588 | ||||||||||||||||||
Cost of revenues (1) | (303,568 | ) | (772,812 | ) | (1,919,241 | ) | (3,273,493 | ) | (5,587,673 | ) | (802,619 | ) | ||||||||||||
Gross (loss)/profit | (172,572 | ) | (249,502 | ) | 549,208 | 855,438 | 1,190,249 | 170,969 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Sales and marketing expenses (1) | (17,689 | ) | (102,659 | ) | (232,489 | ) | (585,758 | ) | (1,198,516 | ) | (172,156 | ) | ||||||||||||
General and administrative expenses (1) | (153,707 | ) | (451,334 | ) | (260,898 | ) | (461,165 | ) | (592,497 | ) | (85,107 | ) | ||||||||||||
Research and development expenses (1) | (24,915 | ) | (91,222 | ) | (280,093 | ) | (537,488 | ) | (894,411 | ) | (128,474 | ) | ||||||||||||
Total operating expenses | (196,311 | ) | (645,215 | ) | (773,480 | ) | (1,584,411 | ) | (2,685,424 | ) | (385,737 | ) | ||||||||||||
Loss from operations | (368,883 | ) | (894,717 | ) | (224,272 | ) | (728,973 | ) | (1,495,175 | ) | (214,768 | ) | ||||||||||||
Loss before tax | (371,063 | ) | (908,355 | ) | (174,869 | ) | (539,033 | ) | (1,267,703 | ) | (182,093 | ) |
For the Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share and per share data) | ||||||||||||||||||||||||
Selected Consolidated Statements of Operations and Comprehensive Loss Data: | ||||||||||||||||||||||||
Net revenues | 523,310 | 2,468,449 | 4,128,931 | 6,777,922 | 11,998,976 | 1,838,924 | ||||||||||||||||||
Cost of revenues (1) | (772,812 | ) | (1,919,241 | ) | (3,273,493 | ) | (5,587,673 | ) | (9,158,800 | ) | (1,403,648 | ) | ||||||||||||
Gross (loss)/profit | (249,502 | ) | 549,208 | 855,438 | 1,190,249 | 2,840,176 | 435,276 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Sales and marketing expenses (1) | (102,659 | ) | (232,489 | ) | (585,758 | ) | (1,198,516 | ) | (3,492,091 | ) | (535,186 | ) | ||||||||||||
General and administrative expenses (1) | (451,334 | ) | (260,898 | ) | (461,165 | ) | (592,497 | ) | (976,082 | ) | (149,592 | ) | ||||||||||||
Research and development expenses (1) | (91,222 | ) | (280,093 | ) | (537,488 | ) | (894,411 | ) | (1,512,966 | ) | (231,872 | ) | ||||||||||||
Total operating expenses | (645,215 | ) | (773,480 | ) | (1,584,411 | ) | (2,685,424 | ) | (5,981,139 | ) | (916,650 | ) | ||||||||||||
Loss from operations | (894,717 | ) | (224,272 | ) | (728,973 | ) | (1,495,175 | ) | (3,140,963 | ) | (481,374 | ) |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share and per share data) | ||||||||||||||||||||||||
Income tax | (2,425 | ) | (3,141 | ) | (8,881 | ) | (25,988 | ) | (35,867 | ) | (5,152 | ) | ||||||||||||
Net loss | (373,488 | ) | (911,496 | ) | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||||||
Accretion to Pre-IPO preferred shares redemption value | (57,942 | ) | (161,933 | ) | (258,554 | ) | (64,605 | ) | — | — | ||||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO preferred shares | (139,522 | ) | (113,151 | ) | (129,244 | ) | — | — | — | |||||||||||||||
Net loss attributable to noncontrolling interests | 1,912 | 1,430 | — | 13,301 | 14,597 | 2,097 | ||||||||||||||||||
Net loss attributable to the Bilibili Inc.’s shareholders | (569,040 | ) | (1,185,150 | ) | (571,548 | ) | (616,325 | ) | (1,288,973 | ) | (185,148 | ) | ||||||||||||
Net loss | (373,488 | ) | (911,496 | ) | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||
Foreign currency translation adjustments | 47,729 | 58,048 | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||||||||
Total other comprehensive income/(loss) | 47,729 | 58,048 | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||||||||
Total comprehensive loss | (325,759 | ) | (853,448 | ) | (259,445 | ) | (268,991 | ) | (1,163,418 | ) | (167,113 | ) | ||||||||||||
Accretion to Pre-IPO preferred shares redemption value | (57,942 | ) | (161,933 | ) | (258,554 | ) | (64,605 | ) | — | — | ||||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO preferred shares | (139,522 | ) | (113,151 | ) | (129,244 | ) | — | — | — | |||||||||||||||
Net loss attributable to noncontrolling interests | 1,912 | 1,430 | — | 13,301 | 14,597 | 2,097 | ||||||||||||||||||
Comprehensive loss attributable to the Bilibili Inc.’s shareholders | (521,311 | ) | (1,127,102 | ) | (647,243 | ) | (320,295 | ) | (1,148,821 | ) | (165,016 | ) | ||||||||||||
Net loss per share, basic | (9.72 | ) | (20.42 | ) | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||||||
Net loss per share, diluted | (9.72 | ) | (20.42 | ) | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||||||
Net loss per ADS, basic | — | — | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||||||||
Net loss per ADS, diluted | — | — | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||||||||
Weighted average number of ordinary shares, basic | 58,548,310 | 58,038,570 | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||||||||
Weighted average number of ordinary shares, diluted | 58,548,310 | 58,038,570 | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||||||||
Weighted average number of ADS, basic | — | — | — | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||||||||
Weighted average number of ADS, diluted | — | — | — | 233,047,703 | 323,161,680 | 323,161,680 |
For the Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share and per share data) | ||||||||||||||||||||||||
Other income: | ||||||||||||||||||||||||
Investment income, net (including impairments) | 9,795 | 22,957 | 96,440 | 96,610 | 28,203 | 4,322 | ||||||||||||||||||
Interest income | 1,502 | 1,483 | 68,706 | 162,782 | 83,301 | 12,766 | ||||||||||||||||||
Interest expense | — | — | — | (46,543 | ) | (108,547 | ) | (16,636 | ) | |||||||||||||||
Exchange (losses)/gains | (21,267 | ) | 6,445 | (1,661 | ) | (11,789 | ) | 41,717 | 6,393 | |||||||||||||||
Others, net | (3,668 | ) | 18,518 | 26,455 | 26,412 | 95,641 | 14,660 | |||||||||||||||||
Loss before tax | (908,355 | ) | (174,869 | ) | (539,033 | ) | (1,267,703 | ) | (3,000,648 | ) | (459,869 | ) | ||||||||||||
Income tax | (3,141 | ) | (8,881 | ) | (25,988 | ) | (35,867 | ) | (53,369 | ) | (8,180 | ) | ||||||||||||
Net loss | (911,496 | ) | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (3,054,017 | ) | (468,049 | ) | ||||||||||||
Accretion to redeemable noncontrolling interests | — | — | — | — | (4,292 | ) | (658 | ) | ||||||||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (161,933 | ) | (258,554 | ) | (64,605 | ) | — | — | — | |||||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | (113,151 | ) | (129,244 | ) | — | — | — | — | ||||||||||||||||
Net loss attributable to noncontrolling interests | 1,430 | — | 13,301 | 14,597 | 46,605 | 7,143 | ||||||||||||||||||
Net loss attributable to the Bilibili Inc.’s shareholders | (1,185,150 | ) | (571,548 | ) | (616,325 | ) | (1,288,973 | ) | (3,011,704 | ) | (461,564 | ) | ||||||||||||
Net loss | (911,496 | ) | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (3,054,017 | ) | (468,049 | ) | ||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||
Foreign currency translation adjustments | 58,048 | (75,695 | ) | 296,030 | 140,152 | (325,100 | ) | (49,823 | ) | |||||||||||||||
Total other comprehensive income/(loss) | 58,048 | (75,695 | ) | 296,030 | 140,152 | (325,100 | ) | (49,823 | ) | |||||||||||||||
Total comprehensive loss | (853,448 | ) | (259,445 | ) | (268,991 | ) | (1,163,418 | ) | (3,379,117 | ) | (517,872 | ) | ||||||||||||
Accretion to redeemable noncontrolling interests | — | — | — | — | (4,292 | ) | (658 | ) | ||||||||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (161,933 | ) | (258,554 | ) | (64,605 | ) | — | — | — | |||||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | (113,151 | ) | (129,244 | ) | — | — | — | — | ||||||||||||||||
Net loss attributable to noncontrolling interests | 1,430 | — | 13,301 | 14,597 | 46,605 | 7,143 | ||||||||||||||||||
Comprehensive loss attributable to the Bilibili Inc.’s shareholders | (1,127,102 | ) | (647,243 | ) | (320,295 | ) | (1,148,821 | ) | (3,336,804 | ) | (511,387 | ) | ||||||||||||
Net loss per share, basic | (20.42 | ) | (8.17 | ) | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||||||
Net loss per share, diluted | (20.42 | ) | (8.17 | ) | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||||||
Net loss per ADS, basic | — | — | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||||||||
Net loss per ADS, diluted | — | — | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||||||||
Weighted average number of ordinary shares, basic | 58,038,570 | 69,938,570 | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 | ||||||||||||||||||
Weighted average number of ordinary shares, diluted | 58,038,570 | 69,938,570 | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 | ||||||||||||||||||
Weighted average number of ADS, basic | — | — | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 | ||||||||||||||||||
Weighted average number of ADS, diluted | — | — | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 |
(1) | Share-based compensation expenses were allocated as follows: |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost of revenues | 476 | 3,775 | 7,936 | 28,173 | 23,281 | 3,344 | ||||||||||||||||||
Sales and marketing expenses | 94 | 3,029 | 3,423 | 11,499 | 14,269 | 2,050 | ||||||||||||||||||
General and administrative expenses | 100,228 | 353,806 | 56,746 | 102,544 | 68,497 | 9,839 | ||||||||||||||||||
Research and development expenses | 119 | 4,878 | 11,849 | 38,977 | 66,503 | 9,553 | ||||||||||||||||||
Total | 100,917 | 365,488 | 79,954 | 181,193 | 172,550 | 24,786 | ||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Selected Consolidated Balance Sheet Data: | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | 689,663 | 387,198 | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||||||||
Time deposits | — | — | 1,960 | 749,385 | 1,844,558 | 264,954 | ||||||||||||||||||
Accounts receivable, net | 16,639 | 110,666 | 392,942 | 324,392 | 744,845 | 106,990 | ||||||||||||||||||
Prepayments and other current assets | 86,143 | 185,378 | 477,265 | 990,851 | 1,315,901 | 189,017 | ||||||||||||||||||
Short-term investments | 50,000 | 712,564 | 488,391 | 945,338 | 1,260,810 | 181,104 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Intangible assets, net | 109,515 | 282,472 | 426,292 | 1,419,435 | 1,657,333 | 238,061 | ||||||||||||||||||
Goodwill | — | 50,967 | 50,967 | 941,488 | 1,012,026 | 145,368 | ||||||||||||||||||
Long-term investments, net | 160,644 | 377,031 | 635,952 | 979,987 | 1,251,129 | 179,713 | ||||||||||||||||||
Total assets | 1,156,943 | 2,166,710 | 3,473,525 | 10,490,036 | 15,516,567 | 2,228,815 | ||||||||||||||||||
Total current liabilities | 308,202 | 628,100 | 1,397,994 | 3,298,834 | 4,272,597 | 613,720 | ||||||||||||||||||
Long-term debt | — | — | — | — | 3,414,628 | 490,481 | ||||||||||||||||||
Total mezzanine equity | 1,394,477 | 2,861,613 | 4,015,043 | — | — | — | ||||||||||||||||||
Total shareholders’ (deficit)/equity | (545,736 | ) | (1,323,003 | ) | (1,939,512 | ) | 7,191,202 | 7,636,460 | 1,096,910 |
For the Year Ended December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 (1) | 2019 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Selected Consolidated Statements of Cash Flow Data: | ||||||||||||||||||||||||
Net cash (used in)/provided by operating activities | (191,935 | ) | (198,967 | ) | 464,550 | 737,286 | 194,551 | 27,946 | ||||||||||||||||
Net cash used in investing activities | (355,449 | ) | (1,187,300 | ) | (716,254 | ) | (3,196,394 | ) | (3,958,277 | ) | (568,570 | ) | ||||||||||||
Net cash provided by financing activities | 1,099,184 | 1,024,087 | 675,533 | 4,974,810 | 5,078,842 | 729,530 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | 42,953 | 49,606 | (48,145 | ) | 261,447 | 107,513 | 15,442 | |||||||||||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash | 594,753 | (312,574 | ) | 375,684 | 2,777,149 | 1,422,629 | 204,348 | |||||||||||||||||
Cash and cash equivalents and restricted cash at beginning of the year | 105,019 | 699,772 | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||||||||
Cash and cash equivalents and restricted cash at end of the year | 699,772 | 387,198 | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost of revenues | 3,775 | 7,936 | 28,173 | 23,281 | 37,087 | 5,684 | ||||||||||||||||||
Sales and marketing expenses | 3,029 | 3,423 | 11,499 | 14,269 | 40,808 | 6,254 | ||||||||||||||||||
General and administrative expenses | 353,806 | 56,746 | 102,544 | 68,497 | 181,753 | 27,855 | ||||||||||||||||||
Research and development expenses | 4,878 | 11,849 | 38,977 | 66,503 | 126,250 | 19,349 | ||||||||||||||||||
Total | 365,488 | 79,954 | 181,193 | 172,550 | 385,898 | 59,142 | ||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Selected Consolidated Balance Sheet Data: | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | 387,198 | 762,882 | 3,540,031 | 4,962,660 | 4,678,109 | 716,952 | ||||||||||||||||||
Time deposits | — | 1,960 | 749,385 | 1,844,558 | 4,720,089 | 723,385 | ||||||||||||||||||
Accounts receivable, net | 110,666 | 392,942 | 324,392 | 744,845 | 1,053,641 | 161,478 | ||||||||||||||||||
Prepayments and other current assets | 185,378 | 477,265 | 990,851 | 1,315,901 | 1,765,787 | 270,619 | ||||||||||||||||||
Short-term investments | 712,564 | 488,391 | 945,338 | 1,260,810 | 3,357,189 | 514,511 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Intangible assets, net | 282,472 | 426,292 | 1,419,435 | 1,657,333 | 2,356,959 | 361,220 | ||||||||||||||||||
Goodwill | 50,967 | 50,967 | 941,488 | �� | 1,012,026 | 1,295,786 | 198,588 | |||||||||||||||||
Long-term investments, net | 377,031 | 635,952 | 979,987 | 1,251,129 | 2,232,938 | 342,213 | ||||||||||||||||||
Total assets | 2,166,710 | 3,473,525 | 10,490,036 | 15,516,567 | 23,865,608 | 3,657,566 | ||||||||||||||||||
Total current liabilities | 628,100 | 1,397,994 | 3,298,834 | 4,272,597 | 7,391,548 | 1,132,805 | ||||||||||||||||||
Long-term debt | — | — | — | 3,414,628 | 8,340,922 | 1,278,302 | ||||||||||||||||||
Total liabilities | 628,100 | 1,397,994 | 3,298,834 | 7,880,107 | 16,083,404 | 2,464,891 | ||||||||||||||||||
Net current assets | 772,706 | 755,106 | 3,251,163 | 6,051,467 | 8,347,999 | 1,279,386 | ||||||||||||||||||
Net assets | 1,538,610 | 2,075,531 | 7,191,202 | 7,636,460 | 7,782,204 | 1,192,675 | ||||||||||||||||||
Total mezzanine equity | 2,861,613 | 4,015,043 | — | — | — | — | ||||||||||||||||||
Noncontrolling interests | 357 | — | 240,406 | 583,976 | 182,004 | 27,893 | ||||||||||||||||||
Total shareholders’ (deficit)/equity | (1,323,003 | ) | (1,939,512 | ) | 7,191,202 | 7,636,460 | 7,782,204 | 1,192,675 | ||||||||||||||||
Total liabilities and shareholders’ equity | 2,166,710 | 3,473,525 | 10,490,036 | 15,516,567 | 23,865,608 | 3,657,566 |
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Selected Consolidated Statements of Cash Flow Data: | ||||||||||||||||||||||||
Net cash (used in)/provided by operating activities | (198,967 | ) | 464,550 | 737,286 | 194,551 | 753,103 | 115,418 | |||||||||||||||||
Net cash used in investing activities | (1,187,300 | ) | (716,254 | ) | (3,196,394 | ) | (3,958,277 | ) | (8,906,821 | ) | (1,365,029 | ) | ||||||||||||
Net cash provided by financing activities | 1,024,087 | 675,533 | 4,974,810 | 5,078,842 | 8,335,419 | 1,277,458 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | 49,606 | (48,145 | ) | 261,447 | 107,513 | (466,252 | ) | (71,456 | ) | |||||||||||||||
Net (decrease)/ increase in cash and cash equivalents | (312,574 | ) | 375,684 | 2,777,149 | 1,422,629 | (284,551 | ) | (43,609 | ) | |||||||||||||||
Cash and cash equivalents at beginning of the year | 699,772 | 387,198 | 762,882 | 3,540,031 | 4,962,660 | 760,561 | ||||||||||||||||||
Cash and cash equivalents at end of the year | 387,198 | 762,882 | 3,540,031 | 4,962,660 | 4,678,109 | 716,952 | ||||||||||||||||||
Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
A. | History and Development of the Company |
B. | Business Overview |
Name | Initial Launch Date | Region | Genre | |||
Fate/Grand Order | September 2016 | China | ACG-related game | |||
Azur Lane | May 2017 | China | ACG-related game | |||
Princess Connect! Re: Dive | April 2020 | China | ACG-related game |
C. | Organizational Structure |
(1) | Mr. Rui Chen holds 100% equity interests in Shanghai Kuanyu. He is also the chairman of our board of directors and our chief executive officer. |
(2) | Shanghai Kuanyu has 4 subsidiaries. |
(3) | Mr. Rui Chen, Mr. Yi Xu and Ms. Ni Li |
(4) | Hode Information Technology has 34 subsidiaries. |
1. | the sale, transfer, mortgage or otherwise dispose of any assets (except for those of value less than RMB 1 million in the ordinary course of business of the consolidated affiliated entities), business, management right or beneficial interest of income or create any security interest on any assets, including but not limited to any mortgage, pledge, share options or other guarantee arrangements; |
2. | the provision of any guarantee or any fees to third parties or the occurrence of any indebtedness (except for those reasonable costs incurred in the ordinary course of business); |
3. | the entering into of any material contracts (except for those where contract amount is less than RMB1 million and those which are entered into within the ordinary course of business of the consolidated affiliated entities between Shanghai Kuanyu and Hode Shanghai and its related parties); |
4. | any merger, acquisition, restructuring or liquidation; and |
5. | cause any conflict of interest between Shanghai Kuanyu and Hode Shanghai as well as its shareholders. |
1. | Shanghai Kuanyu shall not in any manner supplement, change or alter its constitutional documents or increase or decrease its registered capital or change the structure of its registered capital in other manner; |
2. | Shanghai Kuanyu shall prudently and effectively operate its business and transactions in accordance with the good financial and business standards; |
3. | Shanghai Kuanyu shall not sell, transfer, mortgage or otherwise dispose of any assets, business, legal or beneficial interest of its income or allow any guarantee or security to be created on its assets except for those of value less than RMB 1 million required for normal business operations; |
4. | Shanghai Kuanyu shall not incur, inherit, guarantee or allow any indebtedness other than those having been disclosed to and consented by Hode Shanghai in writing or those made during the ordinary course of its business; |
5. | Shanghai Kuanyu shall not enter into any material contracts with an amount more than RMB1 million without Hode Shanghai’s prior written consent, except the contracts executed in the ordinary course of business or contracts entered between Shanghai Kuanyu and our Company (or any of our subsidiaries); |
6. | Shanghai Kuanyu shall operate its business in order to maintain its asset value or not allow any acts or omission which adversely affects its business or assets value; |
7. | Shanghai Kuanyu shall immediately inform Hode Shanghai if its assets or business involved in any disputes, litigations, arbitrations or administrative proceedings; |
8. | Shanghai Kuanyu shall not distribute any dividend to its shareholder without Hode Shanghai’s written consent. To the extent permitted under the relevant PRC laws and regulations, Mr. Rui Chen shall inform and transfer all distributable receivable by him to Hode Shanghai as soon as possible after receiving such interests; |
9. | Shanghai Kuanyu and its affiliates shall provide its operation and financial information to Hode Shanghai or its designated person upon Hode Shanghai’s request; |
10. | Shanghai Kuanyu shall not separate, or merge, or enter into joint operation agreements with other entities, or acquire or be acquired by other entities, or invest in any entities without Hode Shanghai’s written consent; |
11. | Shanghai Kuanyu shall sign all necessary and appropriate documents, take all necessary and proper acts, bring up all necessary and proper requests, or raise necessary and proper defenses against claims to maintain Shanghai Kuanyu and its affiliates’ ownership for all the assets; |
12. | if Mr. Rui Chen or Shanghai Kuanyu fails to perform the tax obligations under applicable laws and results in obstacles for Hode Shanghai to exercise its exclusive option right, Shanghai Kuanyu or Mr. Rui Chen shall pay the taxes or pay the same amount to Hode Shanghai so Hode Shanghai may pay the taxes instead; and |
13. | Shanghai Kuanyu shall take all necessary and proper acts to ensure that all government permits, licenses, authorizations, and approvals required by Shanghai Kuanyu and its affiliates to conduct their businesses are valid and make all necessary changes as required by the relevant PRC laws and regulations. |
D. | Property, Plant and Equipment |
A. | Operating Results |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Average MAUs | 77,454.2 | 85,041.4 | 92,748.0 | 92,766.2 | 101,334.7 | 110,352.7 | 127,876.2 | 130,276.9 |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Average MAU (1) | 101.3 | 110.4 | 127.9 | 130.3 | 172.4 | 171.6 | 197.2 | 202.0 |
(1) | Our MAU include mobile apps MAU and PC MAU after eliminating duplicates. |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Average MAUs | 77,454.2 | 85,041.4 | 92,748.0 | 92,766.2 | 101,334.7 | 110,352.7 | 127,876.2 | 130,276.9 | ||||||||||||||||||||||||
Average monthly paying users | 2,472.5 | 2,966.2 | 3,540.2 | 4,415.8 | 5,742.6 | 6,258.5 | 7,946.6 | 8,817.4 | ||||||||||||||||||||||||
Average monthly paying users for mobile games | 829.9 | 817.4 | 913.9 | 879.1 | 1,023.2 | 971.3 | 1,460.6 | 1,256.0 | ||||||||||||||||||||||||
(in RMB) | ||||||||||||||||||||||||||||||||
Average monthly revenue per paying user | 105.7 | 102.2 | 86.0 | 69.0 | 67.6 | 66.4 | 58.1 | 54.5 | ||||||||||||||||||||||||
Average monthly revenue per paying user for mobile games | 276.5 | 322.6 | 271.4 | 270.3 | 284.6 | 315.7 | 213.0 | 231.3 |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Average MAU | 101.3 | 110.4 | 127.9 | 130.3 | 172.4 | 171.6 | 197.2 | 202.0 | ||||||||||||||||||||||||
Average monthly paying users | 5.7 | 6.3 | 7.9 | 8.8 | 13.4 | 12.9 | 15.0 | 17.9 | ||||||||||||||||||||||||
(In RMB) | ||||||||||||||||||||||||||||||||
Average monthly revenue per paying user | 67.6 | 66.4 | 58.1 | 54.5 | 48.3 | 53.8 | 50.1 | 44.2 |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||
Mobile games | 2,058,226 | 83.4 | % | 2,936,331 | 71.1 | % | 3,597,809 | 516,793 | 53.1 | % | ||||||||||||||||||
Live broadcasting and VAS | 176,443 | 7.1 | % | 585,643 | 14.2 | % | 1,641,043 | 235,721 | 24.2 | % | ||||||||||||||||||
Advertising | 159,160 | 6.5 | % | 463,490 | 11.2 | % | 817,016 | 117,357 | 12.1 | % | ||||||||||||||||||
E-commerce and others | 74,620 | 3.0 | % | 143,467 | 3.5 | % | 722,054 | 103,717 | 10.6 | % | ||||||||||||||||||
Total net revenues | 2,468,449 | 100.0 | % | 4,128,931 | 100.0 | % | 6,777,922 | 973,588 | 100.0 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||||||
Mobile games | 2,936,331 | 71.1 | % | 3,597,809 | 53.1 | % | 4,803,382 | 736,151 | 40.0 | % | ||||||||||||||||||
Value-added services | 585,643 | 14.2 | % | 1,641,043 | 24.2 | % | 3,845,663 | 589,374 | 32.0 | % | ||||||||||||||||||
Advertising | 463,490 | 11.2 | % | 817,016 | 12.1 | % | 1,842,772 | 282,417 | 15.4 | % | ||||||||||||||||||
E-commerce and others | 143,467 | 3.5 | % | 722,054 | 10.6 | % | 1,507,159 | 230,982 | 12.6 | % | ||||||||||||||||||
Total net revenues | 4,128,931 | 100.0 | % | 6,777,922 | 100.0 | % | 11,998,976 | 1,838,924 | 100.0 | % | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||
Revenue-sharing costs | 926,315 | 48.3 | % | 1,630,881 | 49.8 | % | 2,494,416 | 358,300 | 44.6 | % | ||||||||||||||||||
Content costs | 261,534 | 13.6 | % | 543,009 | 16.6 | % | 1,001,600 | 143,871 | 17.9 | % | ||||||||||||||||||
Staff costs | 128,268 | 6.7 | % | 238,793 | 7.3 | % | 356,688 | 51,235 | 6.4 | % | ||||||||||||||||||
Server and bandwidth costs | 468,903 | 24.4 | % | 618,737 | 18.9 | % | 919,753 | 132,114 | 16.5 | % | ||||||||||||||||||
Others | 134,221 | 7.0 | % | 242,073 | 7.4 | % | 815,216 | 117,099 | 14.6 | % | ||||||||||||||||||
Total cost of revenues | 1,919,241 | 100 | % | 3,273,493 | 100 | % | 5,587,673 | 802,619 | 100 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||
Revenue-sharing costs | 1,630,881 | 49.8 | % | 2,494,416 | 44.6 | % | 4,366,490 | 669,194 | 47.7 | % | ||||||||||||||||||
Content costs | 543,009 | 16.6 | % | 1,001,600 | 17.9 | % | 1,875,546 | 287,440 | 20.5 | % | ||||||||||||||||||
Server and bandwidth costs | 618,737 | 18.9 | % | 919,753 | 16.5 | % | 1,141,257 | 174,905 | 12.5 | % | ||||||||||||||||||
E-commerce and others | 480,866 | 14.7 | % | 1,171,904 | 21.0 | % | 1,775,507 | 272,109 | 19.3 | % | ||||||||||||||||||
Total cost of revenues | 3,273,493 | 100 | % | 5,587,673 | 100 | % | 9,158,800 | 1,403,648 | 100 | % | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses | 232,489 | 30.1 | % | 585,758 | 37.0 | % | 1,198,516 | 172,156 | 44.6 | % | ||||||||||||||||||
General and administrative expenses | 260,898 | 33.7 | % | 461,165 | 29.1 | % | 592,497 | 85,107 | 22.1 | % | ||||||||||||||||||
Research and development expenses | 280,093 | 36.2 | % | 537,488 | 33.9 | % | 894,411 | 128,474 | 33.3 | % | ||||||||||||||||||
Total operating expenses | 773,480 | 100 | % | 1,584,411 | 100 | % | 2,685,424 | 385,737 | 100 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses | 585,758 | 37.0 | % | 1,198,516 | 44.6 | % | 3,492,091 | 535,186 | 58.4 | % | ||||||||||||||||||
General and administrative expenses | 461,165 | 29.1 | % | 592,497 | 22.1 | % | 976,082 | 149,592 | 16.3 | % | ||||||||||||||||||
Research and development expenses | 537,488 | 33.9 | % | 894,411 | 33.3 | % | 1,512,966 | 231,872 | 25.3 | % | ||||||||||||||||||
Total operating expenses | 1,584,411 | 100 | % | 2,685,424 | 100 | % | 5,981,139 | 916,650 | 100 | % | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Sales and marketing expenses: | ||||||||||||||||||||||||||||
Marketing and promotional expenses | 436,487 | 74.5 | % | 934,701 | 78.0 | % | 3,005,965 | 460,684 | 86.1 | % | ||||||||||||||||||
Staff costs | 131,183 | 22.4 | % | 204,770 | 17.1 | % | 400,910 | 61,442 | 11.5 | % | ||||||||||||||||||
Others | 18,088 | 3.1 | % | 59,045 | 4.9 | % | 85,216 | 13,060 | 2.4 | % | ||||||||||||||||||
Total sales and marketing expenses | 585,758 | 100.0 | % | 1,198,516 | 100.0 | % | 3,492,091 | 535,186 | 100 | % | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues | 4,128,931 | 100.0 | % | 6,777,922 | 100.0 | % | 11,998,976 | 1,838,924 | 100.0 | % | ||||||||||||||||||
Cost of revenues (1) | (3,273,493 | ) | (79.3 | )% | (5,587,673 | ) | (82.4 | )% | (9,158,800 | ) | (1,403,648 | ) | (76.3 | %) | ||||||||||||||
Gross profit | 855,438 | 20.7 | % | 1,190,249 | 17.6 | % | 2,840,176 | 435,276 | 23.7 | % | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses (1) | (585,758 | ) | (14.2 | )% | (1,198,516 | ) | (17.7 | )% | (3,492,091 | ) | (535,186 | ) | (29.1 | )% | ||||||||||||||
General and administrative expenses (1) | (461,165 | ) | (11.2 | )% | (592,497 | ) | (8.7 | )% | (976,082 | ) | (149,592 | ) | (8.1 | )% | ||||||||||||||
Research and development expenses (1) | (537,488 | ) | (13.0 | )% | (894,411 | ) | (13.2 | )% | (1,512,966 | ) | (231,872 | ) | (12.6 | )% | ||||||||||||||
Total operating expenses | (1,584,411 | ) | (38.4 | )% | (2,685,424 | ) | (39.6 | )% | (5,981,139 | ) | (916,650 | ) | (49.8 | )% | ||||||||||||||
Loss from operations | (728,973 | ) | (17.7 | )% | (1,495,175 | ) | (22.0 | )% | (3,140,963 | ) | (481,374 | ) | (26.1 | )% | ||||||||||||||
Other income/(expenses): | ||||||||||||||||||||||||||||
Investment income, net (including impairments) | 96,440 | 2.3 | % | 96,610 | 1.4 | % | 28,203 | 4,322 | 0.2 | % | ||||||||||||||||||
Interest income | 68,706 | 1.7 | % | 162,782 | 2.4 | % | 83,301 | 12,766 | 0.7 | % | ||||||||||||||||||
Interest expense | — | — | (46,543 | ) | (0.7 | )% | (108,547 | ) | (16,636 | ) | (0.9 | %) | ||||||||||||||||
Exchange (losses)/gains | (1,661 | ) | 0.0 | % | (11,789 | ) | (0.2 | )% | 41,717 | 6,393 | 0.3 | % | ||||||||||||||||
Others, net | 26,455 | 0.6 | % | 26,412 | 0.4 | % | 95,641 | 14,660 | 0.8 | % | ||||||||||||||||||
Loss before tax | (539,033 | ) | (13.1 | )% | (1,267,703 | ) | (18.7 | )% | (3,000,648 | ) | (459,869 | ) | (25.0 | %) | ||||||||||||||
Income tax | (25,988 | ) | (0.6 | )% | (35,867 | ) | (0.5 | )% | (53,369 | ) | (8,180 | ) | (0.4 | %) | ||||||||||||||
Net loss | (565,021 | ) | (13.7 | )% | (1,303,570 | ) | (19.2 | )% | (3,054,017 | ) | (468,049 | ) | (25.4 | %) | ||||||||||||||
(1) | Share-based compensation expenses were allocated as follows: |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentages) | ||||||||||||||||||||||||||||
Net revenues | 2,468,449 | 100.0 | % | 4,128,931 | 100.0 | % | 6,777,922 | 973,588 | 100.0 | % | ||||||||||||||||||
Cost of revenues (1) | (1,919,241 | ) | (77.8 | )% | (3,273,493 | ) | (79.3 | )% | (5,587,673 | ) | (802,619 | ) | (82.4 | )% | ||||||||||||||
Gross profit | 549,208 | 22.2 | % | 855,438 | 20.7 | % | 1,190,249 | 170,969 | 17.6 | % | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Sales and marketing expenses (1) | (232,489 | ) | (9.4 | )% | (585,758 | ) | (14.2 | )% | (1,198,516 | ) | (172,156 | ) | (17.7 | )% | ||||||||||||||
General and administrative expenses (1) | (260,898 | ) | (10.6 | )% | (461,165 | ) | (11.2 | )% | (592,497 | ) | (85,107 | ) | (8.7 | )% | ||||||||||||||
Research and development expenses (1) | (280,093 | ) | (11.3 | )% | (537,488 | ) | (13.0 | )% | (894,411 | ) | (128,474 | ) | (13.2 | )% | ||||||||||||||
Total operating expenses | (773,480 | ) | (31.3 | )% | (1,584,411 | ) | (38.4 | )% | (2,685,424 | ) | (385,737 | ) | (39.6 | )% | ||||||||||||||
Loss from operations | (224,272 | ) | (9.1 | )% | (728,973 | ) | (17.7 | )% | (1,495,175 | ) | (214,768 | ) | (22.0 | )% | ||||||||||||||
Other income/(expenses): | ||||||||||||||||||||||||||||
Investment income, net (including impairments) | 22,957 | 0.9 | % | 96,440 | 2.3 | % | 96,610 | 13,877 | 1.4 | % | ||||||||||||||||||
Interest income | 1,483 | 0.1 | % | 68,706 | 1.7 | % | 162,782 | 23,382 | 2.4 | % | ||||||||||||||||||
Interest expense | — | — | — | — | (46,543 | ) | (6,685 | ) | (0.7 | )% | ||||||||||||||||||
Exchange gains/(losses) | 6,445 | 0.3 | % | (1,661 | ) | 0.0 | % | (11,789 | ) | (1,693 | ) | (0.2 | )% | |||||||||||||||
Others, net | 18,518 | 0.7 | % | 26,455 | 0.6 | % | 26,412 | 3,794 | 0.4 | % | ||||||||||||||||||
Loss before tax | (174,869 | ) | (7.1 | )% | (539,033 | ) | (13.1 | )% | (1,267,703 | ) | (182,093 | ) | (18.7 | )% | ||||||||||||||
Income tax | (8,881 | ) | (0.4 | )% | (25,988 | ) | (0.6 | )% | (35,867 | ) | (5,152 | ) | (0.5 | )% | ||||||||||||||
Net loss | (183,750 | ) | (7.5 | )% | (565,021 | ) | (13.7 | )% | (1,303,570 | ) | (187,245 | ) | (19.2 | )% | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenues | 28,173 | 23,281 | 37,087 | 5,684 | ||||||||||||
Sales and marketing expenses | 11,499 | 14,269 | 40,808 | 6,254 | ||||||||||||
General and administrative expenses | 102,544 | 68,497 | 181,753 | 27,855 | ||||||||||||
Research and development expenses | 38,977 | 66,503 | 126,250 | 19,349 | ||||||||||||
Total | 181,193 | 172,550 | 385,898 | 59,142 | ||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenues | 7,936 | 28,173 | 23,281 | 3,344 | ||||||||||||
Sales and marketing expenses | 3,423 | 11,499 | 14,269 | 2,050 | ||||||||||||
General and administrative expenses | 56,746 | 102,544 | 68,497 | 9,839 | ||||||||||||
Research and development expenses | 11,849 | 38,977 | 66,503 | 9,553 | ||||||||||||
Total | 79,954 | 181,193 | 172,550 | 24,786 | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
(in millions, except as otherwise indicated) | ||||||||||||
Average MAU | 87.0 | 117.5 | 185.8 | |||||||||
Average monthly paying user | 3.4 | 7.2 | 14.8 | |||||||||
Paying ratio % (Average monthly paying user / MAU) | 3.9 | % | 6.1 | % | 8.0 | % | ||||||
Average monthly paying user for mobile games | 0.9 | 1.2 | 1.8 | |||||||||
Average monthly paying user for VAS (1) | 2.5 | 6.0 | 13.0 | |||||||||
Daily time spending per active user (minutes) | over 75 minutes | over 80 minutes | over 80 minutes |
(1) | Average monthly paying user for VAS excludes the duplicative average monthly paying user for mobile games. |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Average monthly revenue per MAU (1) | 4.0 | 4.8 | 5.4 | |||||||||
Average monthly revenue per paying user (2) | 87.6 | 60.7 | 48.7 | |||||||||
Average monthly revenue per paying user for mobile games | 284.5 | 254.6 | 223.6 | |||||||||
Average monthly revenue per paying user for VAS | 19.6 | 22.7 | 24.6 |
(1) | Numerator is the total net revenues. |
(2) | Numerator includes only revenues from mobile games and VAS. |
As of December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
(in thousands) | ||||||||||||
Financial products | 858,021 | 1,070,113 | 2,866,643 | |||||||||
Investments in publicly traded companies | — | 80,918 | 434,609 | |||||||||
Money market funds | 87,317 | 109,779 | 55,937 | |||||||||
Total | 945,338 | 1,260,810 | 3,357,189 | |||||||||
As of December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
(in thousands) | ||||||||||||
Equity investments accounted for using the measurement alternative | 793,149 | 666,025 | 1,791,393 | |||||||||
Equity investments accounted for using the equity method | — | 279,854 | 188,199 | |||||||||
Investments accounted for at fair value | 186,838 | 305,250 | 253,346 | |||||||||
Total | 979,987 | 1,251,129 | 2,232,938 | |||||||||
B. | Liquidity and Capital Resources |
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Selected Consolidated Cash Flows Data: | ||||||||||||||||
Net cash provided by operating activities | 464,550 | 737,286 | 194,551 | 27,946 | ||||||||||||
Net cash used in investing activities | (716,254 | ) | (3,196,394 | ) | (3,958,277 | ) | (568,570 | ) | ||||||||
Net cash provided by financing activities | 675,533 | 4,974,810 | 5,078,842 | 729,530 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | (48,145 | ) | 261,447 | 107,513 | 15,442 | |||||||||||
Net increase in cash and cash equivalents and restricted cash | 375,684 | 2,777,149 | 1,422,629 | 204,348 | ||||||||||||
Cash and cash equivalents and restricted cash at beginning of the year | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||
Cash and cash equivalents and restricted cash at end of the year | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Selected Consolidated Cash Flows Data: | ||||||||||||||||
Net cash provided by operating activities | 737,286 | 194,551 | 753,103 | 115,418 | ||||||||||||
Net cash used in investing activities | (3,196,394 | ) | (3,958,277 | ) | (8,906,821 | ) | (1,365,029 | ) | ||||||||
Net cash provided by financing activities | 4,974,810 | 5,078,842 | 8,335,419 | 1,277,458 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | 261,447 | 107,513 | (466,252 | ) | (71,456 | ) | ||||||||||
Net increase in cash and cash equivalents | 2,777,149 | 1,422,629 | (284,551 | ) | (43,609 | ) | ||||||||||
Cash and cash equivalents at beginning of the year | 762,882 | 3,540,031 | 4,962,660 | 760,561 | ||||||||||||
Cash and cash equivalents at end of the year | 3,540,031 | 4,962,660 | 4,678,109 | 716,952 | ||||||||||||
C. | Research and Development, Patents and Licenses, Etc. |
D. | Trend Information |
E. | Off-balance Sheet Arrangements |
F. | Tabular Disclosure of Contractual Obligations |
Payment due by December 31, | ||||||||||||||||||||||||
Total | 2020 | 2021 | 2022 | 2023 | After | |||||||||||||||||||
(in RMB thousands) | ||||||||||||||||||||||||
Operating lease commitments (1) | 312,249 | 93,741 | 100,109 | 89,399 | 28,643 | 357 | ||||||||||||||||||
Long-term debt obligations (2) | 3,799,847 | 47,961 | 47,961 | 47,961 | 47,961 | 3,608,003 | ||||||||||||||||||
Purchase obligation (3) | 800,000 | 320,000 | 240,000 | 240,000 | — | — | ||||||||||||||||||
Total | 4,912,096 | 461,702 | 388,070 | 377,360 | 76,604 | 3,608,360 | ||||||||||||||||||
Payment due by December 31, | ||||||||||||||||||||||||
Total | 2021 | 2022 | 2023 | 2024 | After | |||||||||||||||||||
(in RMB thousands) | ||||||||||||||||||||||||
Operating lease commitments (1) | 496,433 | 156,869 | 171,923 | 106,253 | 43,575 | 17,813 | ||||||||||||||||||
Long-term debt obligations (2) | 9,151,355 | 110,108 | 110,108 | 110,108 | 110,108 | 8,710,923 | ||||||||||||||||||
Purchase obligation (3) | 622,500 | 377,500 | 200,000 | 45,000 | — | — | ||||||||||||||||||
Total | 10,270,288 | 644,477 | 482,031 | 261,361 | 153,683 | 8,728,736 | ||||||||||||||||||
(1) | Operating lease commitments consist of the commitments under the lease agreements for our office premises. |
(2) | Long-term debt obligations consist of the principal amount and cash interests in connection with the 2026 Notes and 2027 Notes. |
(3) | Purchase obligation consists of the commitment under the |
G. | Safe Harbor |
ITEM | 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. | Directors and Senior Management |
Directors and Executive Officers | Age | Position/Title | ||||
Rui Chen | Chairman of the Board of Directors and Chief Executive Officer | |||||
Yi Xu | Founder, Director and President | |||||
Ni Li | Vice | |||||
Independent Director | ||||||
Independent Director | ||||||
Independent Director | ||||||
Independent Director | ||||||
Xin Fan | 41 | Chief Financial Officer |
B. | Compensation |
Name | Ordinary Shares Underlying Options Awarded | Exercise Price (US$/Share) | Date of Grant | Date of Expiration | ||||||
Rui Chen | * | From nominal to US$20.26 | March 2020 November 2020 | March 2027 November 2027 | ||||||
Yi Xu | — | |||||||||
Ni Li | * | Nominal | ||||||||
Xin Fan | * | Various dates from April 2016 to March 2020 | Various dates from April to | |||||||
Other grantees | 14,240,166 | From nominal to US$20.26 | to December 2020 | to December 2027 | ||||||
Total | 22,265,166 | |||||||||
* | Less than 1% of our total outstanding shares. |
C. | Board Practices |
• | �� | approving the transfer of shares in our company, including the registration of such shares in our share register. |
D. | Employees |
As of December 31, 2020 | |||||
Function: | |||||
Platform operations | |||||
Products and technology | |||||
Content operations | |||||
Content audit | |||||
Management, sales, finance and administration | |||||
Total | |||||
E. | Share Ownership |
Ordinary Shares Beneficially Owned | ||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Total Ordinary Shares | % of Beneficial Ownership | % of Aggregate Voting Power † | ||||||||||||||||
Directors and Executive Officers**: | ||||||||||||||||||||
Rui Chen (1) | 49,299,006 | 133,945 | 49,432,951 | 15.1 | % | 45.0 | %*** | |||||||||||||
Yi Xu (2) | 28,865,808 | 25,000 | 28,890,808 | 8.8 | % | 26.3 | %*** | |||||||||||||
Ni Li (3) | 7,200,000 | 800,000 | 8,000,000 | 2.4 | % | 6.6 | %*** | |||||||||||||
Wenji Jin (4) | — | * | * | * | * | |||||||||||||||
JP Gan (5) | — | * | * | * | * | |||||||||||||||
Eric He (6) | — | * | * | * | * | |||||||||||||||
Feng Li (7) | — | — | — | — | — | |||||||||||||||
Xin Fan | — | * | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group | 85,364,814 | 2,537,445 | 87,902,259 | 26.7 | % | 78.0 | % | |||||||||||||
Principal Shareholders: | ||||||||||||||||||||
Entities affiliated with Rui Chen (8) | 49,299,006 | 133,945 | 49,432,951 | 15.1 | % | 45.0 | % | |||||||||||||
Tencent entities (9) | — | 43,749,518 | 43,749,518 | 13.3 | % | 4.0 | % | |||||||||||||
Kami Sama Limited (10) | 28,865,808 | — | 28,865,808 | 8.8 | % | 26.3 | % | |||||||||||||
Taobao China Holding Limited (11) | — | 23,645,657 | 23,645,657 | 7.2 | % | 2.2 | % | |||||||||||||
Loyal Valley Capital (12) | — | 19,353,524 | 19,353,524 | 5.9 | % | 1.8 | % |
Ordinary Shares Beneficially Owned | ||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Total Ordinary Shares | % of Beneficial Ownership | % of Aggregate Voting Power† | ||||||||||||||||
Directors and Executive Officers**: | ||||||||||||||||||||
Rui Chen (1) | 49,299,006 | 629,745 | 49,928,751 | 14.2 | % | 44.6 | % | |||||||||||||
Yi Xu (2) | 27,216,108 | 1,096,100 | 28,312,208 | 8.0 | % | 24.7 | % | |||||||||||||
Ni Li (3) | 7,200,000 | 908,300 | 8,108,300 | 2.3 | % | 6.6 | % | |||||||||||||
JP Gan (4) | — | * | * | * | * | |||||||||||||||
Eric He (5) | — | * | * | * | * | |||||||||||||||
Feng Li (6) | — | — | — | — | — | |||||||||||||||
Guoqi Ding (7) | — | — | — | — | — | |||||||||||||||
Xin Fan | — | * | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group | 83,715,114 | 3,601,345 | 87,316,459 | 24.8 | % | 76.0 | % | |||||||||||||
Principal Shareholders: | ||||||||||||||||||||
Entities affiliated with Rui Chen (8) | 49,299,006 | 629,745 | 49,928,751 | 14.2 | % | 44.6 | % | |||||||||||||
Tencent entities (9) | — | 43,749,518 | 43,749,518 | 12.4 | % | 4.0 | % | |||||||||||||
Entity affiliated with Yi Xu (10) | 27,216,108 | 1,051,100 | 28,267,208 | 8.0 | % | 24.7 | % | |||||||||||||
Taobao China Holding Limited (11) | — | 23,645,657 | 23,645,657 | 6.7 | % | 2.1 | % |
† | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class Y and Class Z ordinary shares as a single class. Each holder of Class Z ordinary shares is entitled to one vote per share and each holder of our Class Y ordinary shares is entitled to ten votes per share on all matters submitted to them for a vote. Our Class Y ordinary shares and Class Z ordinary shares vote together as a single class on all matters submitted to a vote of our shareholders, except as may otherwise be required by law. Our Class Y ordinary shares are convertible at any time by the holder thereof into Class Z ordinary shares on a one-for-one |
* | Less than 1% of our total outstanding shares. |
** | Except as otherwise indicated below, the business address of our directors and executive officers is c/o Shanghai Hode Information Technology Co., Ltd., Building 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District, Shanghai, People’s Republic of China. |
(1) | Represents (i) 49,299,006 Class Y ordinary shares and 495,800 Class Z ordinary shares directly held by Vanship Limited, a business company limited by shares incorporated in British Virgin Islands, and (ii) 133,945 Class Z ordinary shares directly held by Windforce Limited, a business company limited by shares incorporated in British Virgin Islands. Vanship Limited is controlled by The Le Petit Prince Trust, a trust established under the laws of Cayman Islands and managed by TMF (Cayman) Ltd. as the trustee. Mr. Chen is the settlor of The Le Petit Prince Trust, and Mr. Chen and his family members are the trust’s beneficiaries. Under the terms of this trust, Mr. Chen has the power to direct the trustee with respect to the retention or disposal of, and the exercise of any voting and other rights attached to, the shares held by Vanship Limited in our |
(2) | Represents (i) |
(3) | Represents 7,200,000 Class Y ordinary shares and |
(4) |
The business address of Mr. JP Gan is Suite 909, Bank of America Tower, 12 Harcourt Road, Central, Hong Kong. |
The business address of Mr. Eric He is 2F-1, No. 495, Guangfu S. Road, Xinyi District, Taipei |
The business address of Mr. Feng Li is Room 701, Tower 1, Liangmaqiao Diplomatic Office Building, No 19 Dongfangdong Road, Chaoyang District, Beijing, People’s Republic of China. |
(7) | The business address of Mr. Guoqi Ding is 1500 Changyi Road, Building 1, Room 902, Pudong New Area, Shanghai, People’s Republic of China. |
(8) | Represents (i) 49,299,006 Class Y ordinary shares and 495,800 Class Z ordinary shares directly held by Vanship Limited, a business company limited by shares incorporated in British Virgin Islands, and (ii) 133,945 Class Z ordinary shares directly held by Windforce Limited, a business company limited by shares incorporated in British Virgin Islands. Vanship Limited is controlled by The Le Petit Prince Trust, a trust established under the laws of Cayman Islands and managed by TMF (Cayman) Ltd. as the trustee. Mr. Chen is the settlor of The Le Petit Prince Trust, and Mr. Chen and his family members are the trust’s beneficiaries. Under the terms of this trust, Mr. Chen has the power to direct the trustee with respect to the retention or disposal of, and the exercise of any voting and other rights attached to, the shares held by Vanship Limited in our |
(9) | Represents (i) 10,954,357 Class Z ordinary shares directly held by OPH B Limited, a company limited by shares incorporated in British Virgin Islands, and (ii) 32,795,161 Class Z ordinary shares directly held by Tencent Mobility Limited, a limited company incorporated in Hong Kong, based on the Schedule 13G/A filed on February 10, 2020. OPH B Limited and Tencent Mobility Limited are investing entities ultimately controlled by Tencent Holdings Limited, and are collectively referred to as Tencent entities. The registered address of OPH B Limited is P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. The registered address of Tencent Mobility Limited is 27/F, Three Pacific Place, No.1 Queen’s Road East, Wanchai, Hong Kong. |
(10) | Represents |
(11) | Represents 13,645,657 Class Z ordinary shares and 10,000,000 Class Z ordinary shares in the form of ADSs directly held by Taobao China Holding Limited, a business company limited by shares incorporated in Hong Kong, based on the Schedule 13G filed on February 14, 2019. Taobao China Holding Limited is a wholly-owned subsidiary of Taobao Holding Limited, a business company limited by shares incorporated in Cayman Islands, which is a wholly-owned subsidiary of Alibaba Group Holding Limited, a business company limited by shares incorporated in Cayman Islands. The principal business address of Alibaba Group Holding Limited, Taobao Holding Limited and Taobao China Holding Limited is c/o Alibaba Group Services Limited, 26/F Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong. |
A. | Major Shareholders |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
A. | Consolidated Statements and Other Financial Information |
B. | Significant Changes |
A. | Offering and Listing Details |
B. | Plan of Distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of the Issue |
A. | Share Capital |
B. | Memorandum and Articles of Association |
C. | Material Contracts |
D. | Exchange Controls |
E. | Taxation |
F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
A. | Debt Securities |
B. | Warrants and Rights |
C. | Other Securities |
D. | American Depositary Shares |
Service | Fees | |
Up to US$0.05 per ADS issued | ||
Up to US$0.05 per ADS cancelled | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held | ||
Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary bank |
For the Year Ended December 31, | ||||||||
2018 | 2019 | |||||||
(RMB in thousands) | ||||||||
Audit fees (1) | 7,450 | 9,128 | ||||||
Audit-related fees (2) | — | 3,650 | ||||||
Tax fees (3) | 1,090 | 1,050 | ||||||
Other fees (4) | 180 | 150 |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
(RMB in thousands) | ||||||||||||
Audit fees (1) | 7,450 | 9,128 | 9,128 | |||||||||
Audit-related fees (2) | — | 3,650 | 1,500 | |||||||||
Tax fees (3) | 1,090 | 1,050 | 385 | |||||||||
Other fees (4) | 180 | 150 | 150 |
(1) | “Audit fees” means the aggregate fees incurred for each of the fiscal years listed for professional services rendered by our principal auditors for the audit or review of our annual financial statements or quarterly financial information and review of documents filed with the SEC. In 2018, the audit refers to financial statement audit and assurance services rendered in connection with our IPO in 2018. In 2019 and 2020, the audit refers to financial statement audit and audit pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. |
(2) | “Audit-related fees” means the aggregate fees incurred for the issuance of comfort letters in connection with the offering of the |
(3) | “Tax fees” means the aggregate fees incurred in each of the fiscal years listed for the professional tax services rendered by our principal auditors. |
(4) | “Other fees” means the aggregate fees incurred in each of the fiscal years listed for services rendered by our principal auditors other than services reported under “Audit fees,” “Audit-related fees” and “Tax |
Exhibit Number | Description of Document | |||
1.1 | ||||
2.1 | ||||
2.2 | ||||
2.3 | ||||
Exhibit Number | Description of Document | |||
2.4 | ||||
2.5 | ||||
| ||||
2.6* | Indenture, dated June 2, 2020 constituting US$800 million 1.25% Convertible Senior Notes Due 2027 | |||
2.7* | Description of Securities | |||
4.1 | ||||
4.2 | ||||
4.3 | ||||
4.4 | ||||
4.5* | ||||
4.6* | ||||
4.7* | ||||
4.8* | ||||
4.9* | ||||
Number | ||||
4.10* | ||||
4.11* | ||||
4.12* | ||||
4.13* | ||||
4.14* | ||||
4.15 | ||||
Exhibit Number | Description of Document | ||||
4.16 | |||||
�� | |||||
8.1* | |||||
11.1 | |||||
12.1* | |||||
12.2* | |||||
13.1** | |||||
13.2** | |||||
15.1* | |||||
15.2* | |||||
15.3* | |||||
101.INS** | |||||
Inline XBRL Instance Document—this instance document does not appear in the Interactive Data File because its XBRL tags are not embedded within the Inline XBRL document | |||||
101.SCH** | |||||
Inline XBRL Taxonomy Extension Scheme Document | |||||
101.CAL** | |||||
Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||
101.DEF** | |||||
Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||
101.LAB** | |||||
Inline XBRL Taxonomy Extension Label Linkbase Document | |||||
101.PRE** | |||||
Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||
104 | |||||
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* | Filed with this Annual Report on Form 20-F. |
** | Furnished with this Annual Report on Form 20-F. |
Bilibili Inc. | ||
By: | /s/ Rui Chen | |
Name: | Rui Chen | |
Title: | Chairman of the Board of Directors and | |
Chief Executive Officer |
December 31, 2018 | December 31, 2019 | December 31, 2019 | ||||||||||
RMB | RMB | US$ | ||||||||||
Note 2(e) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 3,540,031 | 4,962,660 | 712,842 | |||||||||
Time deposits | 749,385 | 1,844,558 | 264,954 | |||||||||
Accounts receivable, net | 324,392 | 744,845 | 106,990 | |||||||||
Receivables due from related parties | — | 195,290 | 28,052 | |||||||||
Prepayments and other current assets | 990,851 | 1,315,901 | 189,017 | |||||||||
Short-term investments | 945,338 | 1,260,810 | 181,104 | |||||||||
Total current assets | 6,549,997 | 10,324,064 | 1,482,959 | |||||||||
Non-current assets: | ||||||||||||
Property and equipment, net | 394,898 | 516,087 | 74,131 | |||||||||
Production cost, net | 204,231 | 443,533 | 63,710 | |||||||||
Intangible assets, net | 1,419,435 | 1,657,333 | 238,061 | |||||||||
Deferred tax assets | — | 10,479 | 1,505 | |||||||||
Goodwill | 941,488 | 1,012,026 | 145,368 | |||||||||
Long-term investments, net | 979,987 | 1,251,129 | 179,713 | |||||||||
Other long-term assets | — | 301,916 | 43,368 | |||||||||
Total non-current assets | 3,940,039 | 5,192,503 | 745,856 | |||||||||
Total assets | 10,490,036 | 15,516,567 | 2,228,815 | |||||||||
Liabilities | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB1,078.1 million and RMB1,454.9 million as of December 31, 2018 and 2019, respectively) | 1,307,598 | 1,904,042 | 273,499 | |||||||||
Salary and welfare payable | 246,815 | 355,936 | 51,127 | |||||||||
Taxes payable (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB27.2 million and RMB33.6 million as of December 31, 2018 and 2019, respectively) | 38,505 | 67,856 | 9,747 | |||||||||
Deferred revenue (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB937.1 million and RMB1,234.5 million as of December 31, 2018 and 2019, respectively) | 985,143 | 1,369,000 | 196,645 | |||||||||
Accrued liabilities and other payables (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB318.6 million and RMB222.1 million as of December 31, 2018 and 2019, respectively) | 670,442 | 575,763 | 82,702 | |||||||||
Amount due to related parties (including amounts of the consolidated VIEs without recourse to the primary beneficiary of RMB23.1 million and NaN as of December 31, 2018 and 2019, respectively) | 50,331 | — | — | |||||||||
Total current liabilities | 3,298,834 | 4,272,597 | 613,720 | |||||||||
Non-current liabilities: | ||||||||||||
Long-term debt | — | 3,414,628 | 490,481 | |||||||||
Other long-term liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiary of NaN and RMB23.1 million as of December 31, 2018 and 2019, respectively) | — | 192,882 | 27,704 | |||||||||
Total non- current liabilities | — | 3,607,510 | 518,185 | |||||||||
Total liabilities | 3,298,834 | 7,880,107 | 1,131,905 | |||||||||
Commitments and contingencies 1 ) |
December 31, 2018 | December 31, 2019 | December 31, 2020 | December 31, 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Note 2(e) | ||||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | 3,540,031 | 4,962,660 | 4,678,109 | 716,952 | ||||||||||||
Time deposits | 749,385 | 1,844,558 | 4,720,089 | 723,385 | ||||||||||||
Accounts receivable, net | 324,392 | 744,845 | 1,053,641 | 161,478 | ||||||||||||
Amount due from related parties | — | 195,290 | 164,732 | 25,246 | ||||||||||||
Prepayments and other current assets | 990,851 | 1,315,901 | 1,765,787 | 270,619 | ||||||||||||
Short-term investments | 945,338 | 1,260,810 | 3,357,189 | 514,511 | ||||||||||||
Total current assets | 6,549,997 | 10,324,064 | 15,739,547 | 2,412,191 | ||||||||||||
Non-current assets: | ||||||||||||||||
Property and equipment, net | 394,898 | 516,087 | 761,941 | 116,773 | ||||||||||||
Production cost, net | 204,231 | 443,533 | 667,876 | 102,356 | ||||||||||||
Intangible assets, net | 1,419,435 | 1,657,333 | 2,356,959 | 361,220 | ||||||||||||
Deferred tax assets | — | 10,479 | 20,918 | 3,206 | ||||||||||||
Goodwill | 941,488 | 1,012,026 | 1,295,786 | 198,588 | ||||||||||||
Long-term investments, net | 979,987 | 1,251,129 | 2,232,938 | 342,213 | ||||||||||||
Other long-term assets | — | 301,916 | 789,643 | 121,019 | ||||||||||||
Total non-current assets | 3,940,039 | 5,192,503 | 8,126,061 | 1,245,375 | ||||||||||||
Total assets | 10,490,036 | 15,516,567 | 23,865,608 | 3,657,566 | ||||||||||||
Liabilities | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | 1,307,598 | 1,904,042 | 3,074,298 | 471,157 | ||||||||||||
Salary and welfare payable | 246,815 | 355,936 | 734,376 | 112,548 | ||||||||||||
Taxes payable | 38,505 | 67,856 | 127,192 | 19,493 | ||||||||||||
Short-term loans | — | — | 100,000 | 15,326 | ||||||||||||
Deferred revenue | 985,143 | 1,369,000 | 2,118,006 | 324,599 | ||||||||||||
Accrued liabilities and other payables | 670,442 | 575,763 | 1,237,676 | 189,682 | ||||||||||||
Amount due to related parties | 50,331 | — | — | — | ||||||||||||
Total current liabilities | 3,298,834 | 4,272,597 | 7,391,548 | 1,132,805 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Long-term debt | — | 3,414,628 | 8,340,922 | 1,278,302 | ||||||||||||
Other long-term liabilities | — | 192,882 | 350,934 | 53,784 | ||||||||||||
Total non-current liabilities | — | 3,607,510 | 8,691,856 | 1,332,086 | ||||||||||||
Total liabilities | 3,298,834 | 7,880,107 | 16,083,404 | 2,464,891 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 |
December 31, 2018 | December 31, 2019 | December 31, 2019 | ||||||||||
RMB | RMB | US$ | ||||||||||
Note 2(e) | ||||||||||||
Shareholders’ equity | ||||||||||||
Ordinary shares: | ||||||||||||
Class Y Ordinary Shares (US$0.0001 par value; 100,000,000 shares authorized, 85,364,814 shares issued and outstanding as of December 31, 2018 and 2019) | 53 | 53 | 8 | |||||||||
Class , 226,323,075 shares outstanding as of December 31, 2018; 9,800,000,000 shares authorized, 247,230,234 shares issued, 242,751,341 shares outstanding as of December 31, 2019) | 144 | 155 | 22 | |||||||||
Additional paid-in capital | 9,459,546 | 10,718,190 | 1,539,572 | |||||||||
Statutory reserves | 7,666 | 13,463 | 1,934 | |||||||||
Accumulated other comprehensive income | 326,077 | 466,229 | 66,970 | |||||||||
Accumulated deficit | (2,842,690 | ) | (4,145,606 | ) | (595,479 | ) | ||||||
Total Bilibili Inc.’s shareholders’ equity | 6,950,796 | 7,052,484 | 1,013,027 | |||||||||
Noncontrolling interests | 240,406 | 583,976 | 83,883 | |||||||||
Total shareholders’ equity | 7,191,202 | 7,636,460 | 1,096,910 | |||||||||
Total liabilities and shareholders’ equity | 10,490,036 | 15,516,567 | 2,228,815 | |||||||||
December 31, 2018 | December 31, 2019 | December 31, 2020 | December 31, 2020 | |||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Note 2(e) | ||||||||||||||||
Shareholders’ equity | ||||||||||||||||
Ordinary shares: | ||||||||||||||||
Class Y Ordinary Shares (US$0.0001 par value; 100,000,000 shares authorized, 85,364,814 shares issued and outstanding, as of December 31, 2018 and 2019; US$0.0001 par value; 100,000,000 shares authorized, 83,715,114 shares issued and outstanding as of December 31, 2020) | 53 | 53 | 52 | 8 | ||||||||||||
Class Z Ordinary Shares (US$0.0001 par value; 9,800,000,000 shares authorized, 229,056,421 shares issued and 226,323,075 shares outstanding as of December 31, 2018; 9,800,000,000 shares authorized, 247,230,234 shares issued, 242,751,341 shares outstanding as of December 31, 2019; 9,800,000,000 shares authorized, 271,507,165 shares issued, 268,204,838 shares outstanding as of December 31, 2020) | 144 | 155 | 172 | 26 | ||||||||||||
Additional paid-in capital | 9,459,546 | 10,718,190 | 14,616,302 | 2,240,046 | ||||||||||||
Statutory reserves | 7,666 | 13,463 | 17,884 | 2,741 | ||||||||||||
Accumulated other comprehensive income | 326,077 | 466,229 | 141,129 | 21,629 | ||||||||||||
Accumulated deficit | (2,842,690 | ) | (4,145,606 | ) | (7,175,339 | ) | (1,099,668 | ) | ||||||||
Total Bilibili Inc.’s shareholders’ equity | 6,950,796 | 7,052,484 | 7,600,200 | 1,164,782 | ||||||||||||
Noncontrolling interests | 240,406 | 583,976 | 182,004 | 27,893 | ||||||||||||
Total shareholders’ equity | 7,191,202 | 7,636,460 | 7,782,204 | 1,192,675 | ||||||||||||
Total liabilities and shareholders’ equity | 10,490,036 | 15,516,567 | 23,865,608 | 3,657,566 | ||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Net revenues | 2,468,449 | 4,128,931 | 6,777,922 | 973,588 | ||||||||||||
Cost of revenues | (1,919,241 | ) | (3,273,493 | ) | (5,587,673 | ) | (802,619 | ) | ||||||||
Gross profit | 549,208 | 855,438 | 1,190,249 | 170,969 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | (232,489 | ) | (585,758 | ) | (1,198,516 | ) | (172,156 | ) | ||||||||
General and administrative expenses | (260,898 | ) | (461,165 | ) | (592,497 | ) | (85,107 | ) | ||||||||
Research and development expenses | (280,093 | ) | (537,488 | ) | (894,411 | ) | (128,474 | ) | ||||||||
Total operating expenses | (773,480 | ) | (1,584,411 | ) | (2,685,424 | ) | (385,737 | ) | ||||||||
Loss from operations | (224,272 | ) | (728,973 | ) | (1,495,175 | ) | (214,768 | ) | ||||||||
Other income/(expenses): | ||||||||||||||||
Investment income, net (including impairments) | 22,957 | 96,440 | 96,610 | 13,877 | ||||||||||||
Interest income | 1,483 | 68,706 | 162,782 | 23,382 | ||||||||||||
Interest expen se | — | — | (46,543 | ) | (6,685 | ) | ||||||||||
Exchange gains/(losses) | 6,445 | (1,661 | ) | (11,789 | ) | (1,693 | ) | |||||||||
Others, net | 18,518 | 26,455 | 26,412 | 3,794 | ||||||||||||
Loss before tax | (174,869 | ) | (539,033 | ) | (1,267,703 | ) | (182,093 | ) | ||||||||
Income tax | (8,881 | ) | (25,988 | ) | (35,867 | ) | (5,152 | ) | ||||||||
Net loss | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (258,554 | ) | (64,605 | ) | — | — | ||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | (129,244 | ) | — | — | — | |||||||||||
Net loss attributable to noncontrolling interests | — | 13,301 | 14,597 | 2,097 | ||||||||||||
Net loss attributable to the Bilibili Inc.’s shareholders | (571,548 | ) | (616,325 | ) | (1,288,973 | ) | (185,148 | ) | ||||||||
Net loss | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||
Other comprehensive (loss)/income: | ||||||||||||||||
Foreign currency translation adjustments | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||
Total other comprehensive (loss)/income | (75,695 | ) | 296,030 | 140,152 | 20,132 | |||||||||||
Total comprehensive loss | (259,445 | ) | (268,991 | ) | (1,163,418 | ) | (167,113 | ) | ||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (258,554 | ) | (64,605 | ) | — | — | ||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | (129,244 | ) | — | — | — | |||||||||||
Net loss attributable to noncontrolling interests | — | 13,301 | 14,597 | 2,097 | ||||||||||||
Comprehensive loss attributable to the Bilibili Inc.’s shareholders | (647,243 | ) | (320,295 | ) | (1,148,821 | ) | (165,016 | ) | ||||||||
Net loss per share, basic | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||
Net loss per share, diluted | (8.17 | ) | (2.64 | ) | (3.99 | ) | (0.57 | ) | ||||||||
Net loss per ADS, basic | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||
Net loss per ADS, diluted | — | (2.64 | ) | (3.99 | ) | (0.57 | ) | |||||||||
Weighted average number of ordinary shares, basic | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Weighted average number of ordinary shares, diluted | 69,938,570 | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Weighted average number of ADS, basic | — | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Weighted average number of ADS, diluted | — | 233,047,703 | 323,161,680 | 323,161,680 | ||||||||||||
Share-based compensation expenses included in | ||||||||||||||||
Cost of revenues | 7,936 | 28,173 | 23,281 | 3,344 | ||||||||||||
S a les and marketing expenses | 3,423 | 11,499 | 14,269 | 2,050 | ||||||||||||
General and administrative expenses | 56,746 | 102,544 | 68,497 | 9,839 | ||||||||||||
Research and development expenses | 11,849 | 38,977 | 66,503 | 9,553 |
For the Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Net revenues | 4,128,931 | 6,777,922 | 11,998,976 | 1,838,924 | ||||||||||||
Cost of revenues | (3,273,493 | ) | (5,587,673 | ) | (9,158,800 | ) | (1,403,648 | ) | ||||||||
Gross profit | 855,438 | 1,190,249 | 2,840,176 | 435,276 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | (585,758 | ) | (1,198,516 | ) | (3,492,091 | ) | (535,186 | ) | ||||||||
General and administrative expenses | (461,165 | ) | (592,497 | ) | (976,082 | ) | (149,592 | ) | ||||||||
Research and development expenses | (537,488 | ) | (894,411 | ) | (1,512,966 | ) | (231,872 | ) | ||||||||
Total operating expenses | (1,584,411 | ) | (2,685,424 | ) | (5,981,139 | ) | (916,650 | ) | ||||||||
Loss from operations | (728,973 | ) | (1,495,175 | ) | (3,140,963 | ) | (481,374 | ) | ||||||||
Other income: | ||||||||||||||||
Investment income, net (including impairments) | 96,440 | 96,610 | 28,203 | 4,322 | ||||||||||||
Interest income | 68,706 | 162,782 | 83,301 | 12,766 | ||||||||||||
Interest expense | — | (46,543 | ) | (108,547 | ) | (16,636 | ) | |||||||||
Exchange (losses)/gains | (1,661 | ) | (11,789 | ) | 41,717 | 6,393 | ||||||||||
Others, net | 26,455 | 26,412 | 95,641 | 14,660 | ||||||||||||
Total other income, net | 189,940 | 227,472 | 140,315 | 21,505 | ||||||||||||
Loss before tax | (539,033 | ) | (1,267,703 | ) | (3,000,648 | ) | (459,869 | ) | ||||||||
Income tax | (25,988 | ) | (35,867 | ) | (53,369 | ) | (8,180 | ) | ||||||||
Net loss | (565,021 | ) | (1,303,570 | ) | (3,054,017 | ) | (468,049 | ) | ||||||||
Accretion to redeemable noncontrolling interests | — | — | (4,292 | ) | (658 | ) | ||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (64,605 | ) | — | — | — | |||||||||||
Net loss attributable to noncontrolling interests | 13,301 | 14,597 | 46,605 | 7,143 | ||||||||||||
Net loss attributable to the Bilibili Inc.’s shareholders | (616,325 | ) | (1,288,973 | ) | (3,011,704 | ) | (461,564 | ) | ||||||||
Net loss | (565,021 | ) | (1,303,570 | ) | (3,054,017 | ) | (468,049 | ) | ||||||||
Other comprehensive income/(loss): Foreign currency translation adjustments | 296,030 | 140,152 | (325,100 | ) | (49,823 | ) | ||||||||||
Total other comprehensive income/(loss) | 296,030 | 140,152 | (325,100 | ) | (49,823 | ) | ||||||||||
Total comprehensive loss | (268,991 | ) | (1,163,418 | ) | (3,379,117 | ) | (517,872 | ) | ||||||||
Accretion to redeemable noncontrolling interests | — | — | (4,292 | ) | (658 | ) | ||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | (64,605 | ) | — | — | — | |||||||||||
Net loss attributable to noncontrolling interests | 13,301 | 14,597 | 46,605 | 7,143 | ||||||||||||
Comprehensive loss attributable to the Bilibili Inc.’s shareholders | (320,295 | ) | (1,148,821 | ) | (3,336,804 | ) | (511,387 | ) | ||||||||
Net loss per share, basic | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||
Net loss per share, diluted | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||
Net loss per ADS, basic | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||
Net loss per ADS, diluted | (2.64 | ) | (3.99 | ) | (8.71 | ) | (1.33 | ) | ||||||||
Weighted average number of ordinary shares, basic | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 | ||||||||||||
Weighted average number of ordinary shares, diluted | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 | ||||||||||||
Weighted average number of ADS, basic | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 | ||||||||||||
Weighted average number of ADS, diluted | 233,047,703 | 323,161,680 | 345,816,023 | 345,816,023 | ||||||||||||
Share-based compensation expenses included in Cost of revenues | 28,173 | 23,281 | 37,087 | 5,684 | ||||||||||||
Sales and marketing expenses | 11,499 | 14,269 | 40,808 | 6,254 | ||||||||||||
General and administrative expenses | 102,544 | 68,497 | 181,753 | 27,855 | ||||||||||||
Research and development expenses | 38,977 | 66,503 | 126,250 | 19,349 |
Ordinary shares | Other permanent equities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Pre-IPO Class AOrdinary Shares | Pre-IPO Class BOrdinary Shares | Pre-IPO Class COrdinary Shares | Pre-IPO Class DOrdinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Non contr olling interests | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | — | — | — | — | 71,136,926 | 46 | 13,600,000 | 16,356 | 8,500,000 | 16,944 | 2,132,353 | 6,911 | 307,036 | 1,595 | 105,742 | (1,777,990 | ) | 357 | (1,323,003 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (183,750 | ) | — | (183,750 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | 69,480 | — | — | — | — | 69,480 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Pre-IPO Class A Ordinary Shares | — | — | — | — | (1,154,643 | ) | (1 | ) | — | — | — | — | — | — | (49,085 | ) | — | — | — | — | (49,086 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Class A Ordinary Shares to Pre-IPO Series D1 Preferred Shares | — | — | — | — | (645,357 | ) | — | — | — | — | — | — | — | (17,003 | ) | — | — | — | — | (17,003 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Series C Preferred Shares to Pre-IPO Series D1 Preferred Shares | — | — | — | — | — | — | — | — | — | — | — | — | (129,244 | ) | — | — | — | — | (129,244 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-IPO Preferred Shares redemption value accretion | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (258,554 | ) | — | (258,554 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | (2,332 | ) | — | — | — | (357 | ) | (2,689 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Spin-off transactions | — | — | — | — | — | — | — | — | — | — | — | — | 30,032 | — | — | — | — | 30,032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,480 | — | (2,480 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (75,695 | ) | — | — | (75,695 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | — | — | — | — | 69,336,926 | 45 | 13,600,000 | 16,356 | 8,500,000 | 16,944 | 2,132,353 | 6,911 | 208,884 | 4,075 | 30,047 | (2,222,774 | ) | — | (1,939,512 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | Other permanent equities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Pre-IPO Class AOrdinary Shares | Pre-IPO Class BOrdinary Shares | Pre-IPO Class COrdinary Shares | Pre-IPO Class DOrdinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Noncontrolling interests | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | — | — | — | — | 69,336,926 | 45 | 13,600,000 | 16,356 | 8,500,000 | 16,944 | 2,132,353 | 6,911 | 208,884 | 4,075 | 30,047 | (2,222,774 | ) | — | (1,939,512 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (551,720 | ) | (13,301 | ) | (565,021 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | 178,343 | — | — | — | 2,850 | 181,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance upon initial public offering and follow-on offering, net of issuance costs of US$6,333 | — | — | 67,063,451 | 43 | — | — | — | — | — | — | — | — | 4,952,563 | — | — | — | — | 4,952,606 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Ordinary Shares into Class Y and Class Z Ordinary Shares upon initial public offering | 84,260,279 | 52 | 9,309,000 | 6 | (69,336,926 | ) | (45 | ) | (13,600,000 | ) | (16,356 | ) | (8,500,000 | ) | (16,944 | ) | (2,132,353 | ) | (6,911 | ) | 40,198 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Preferred Shares into Class Y and Class Z Ordinary Shares upon initial public offering | 1,104,535 | 1 | 141,808,970 | 89 | — | — | — | — | — | — | — | — | 4,079,558 | — | — | — | — | 4,079,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-IPO Preferred Shares redemption value accretion | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (64,605 | ) | — | (64,605 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital injection in subsidiaries by noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 22,198 | 22,198 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of subsidiaries | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 228,659 | 228,659 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 8,141,654 | 6 | — | — | — | — | — | — | — | — | — | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,591 | — | (3,591 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 296,030 | — | — | 296,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 85,364,814 | 53 | 226,323,075 | 144 | — | — | — | — | — | — | — | — | 9,459,546 | 7,666 | 326,077 | (2,842,690 | ) | 240,406 | 7,191,202 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | Other permanent equities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Pre-IPO Class AOrdinary Shares | Pre-IPO Class BOrdinary Shares | Pre-IPO Class COrdinary Shares | Pre-IPO Class DOrdinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Non contr olling interests | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31 , 2017 | — | — | — | — | 69,336,926 | 45 | 13,600,000 | 16,356 | 8,500,000 | 16,944 | 2,132,353 | 6,911 | 208,884 | 4,075 | 30,047 | (2,222,774 | ) | — | (1,939,512 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (551,720 | ) | (13,301 | ) | (565,021 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | 178,343 | — | — | — | 2,850 | 181,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance upon initial public offering and followed offering, net of issuance costs of US$6,333 | — | — | 67,063,451 | 43 | — | — | — | — | — | — | — | — | 4,952,563 | — | — | — | — | 4,952,606 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Ordinary Shares into Class Y and Class Z Ordinary Shares upon initial public offering | 84,260,279 | 52 | 9,309,000 | 6 | (69,336,926 | ) | (45 | ) | (13,600,000 | ) | (16,356 | ) | (8,500,000 | ) | (16,944 | ) | (2,132,353 | ) | (6,911 | ) | 40,198 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Redesignation of Pre-IPO Preferred Shares into Class Y and Class Z Ordinary Shares upon initial public offering | 1,104,535 | 1 | 141,808,970 | 89 | — | — | — | — | — | — | — | — | 4,079,558 | — | — | — | — | 4,079,648 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-IPO Preferred Shares redemption value accretion | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (64,605 | ) | — | (64,605 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital injection in subsidiaries by noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 22,198 | 22,198 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of subsidiaries | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 228,659 | 228,659 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 8,141,654 | 6 | — | — | — | — | — | — | — | — | — | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,591 | — | (3,591 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 296,030 | — | — | 296,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31 , 2018 | 85,364,814 | 53 | 226,323,075 | 144 | — | — | — | — | — | — | — | — | 9,459,546 | 7,666 | 326,077 | (2,842,690 | ) | 240,406 | 7,191,202 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Noncontrolling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 85,364,814 | 53 | 226,323,075 | 144 | 9,459,546 | 7,666 | 326,077 | (2,842,690 | ) | 240,406 | 7,191,202 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (1,288,973 | ) | (14,597 | ) | (1,303,570 | ) | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 172,550 | — | — | — | — | 172,550 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares, net of issuance costs of US$9,376 | — | — | 14,173,813 | 10 | 1,647,701 | — | — | — | — | 1,647,711 | ||||||||||||||||||||||||||||||
Acquisition of a subsidiary | — | — | — | — | — | — | — | — | 30,000 | 30,000 | ||||||||||||||||||||||||||||||
Consolidation of an entity under common control (Note 24) | — | — | — | — | (488,463 | ) | — | — | (8,146 | ) | 426,448 | (70,161 | ) | |||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | (73,144 | ) | — | — | — | (102,480 | ) | (175,624 | ) | |||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 2,254,453 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||
Deconsolidation of a subsidiary | — | — | — | — | — | — | — | — | 4,199 | 4,199 | ||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | 5,797 | — | (5,797 | ) | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 140,152 | — | — | 140,152 | ||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 85,364,814 | 53 | 242,751,341 | 155 | 10,718,190 | 13,463 | 466,229 | (4,145,606 | ) | 583,976 | 7,636,460 | |||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Noncontrolling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 85,364,814 | 53 | 242,751,341 | 155 | 10,718,190 | 13,463 | 466,229 | (4,145,606 | ) | 583,976 | 7,636,460 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (3,007,412 | ) | (46,605 | ) | (3,054,017 | ) | |||||||||||||||||||||||||||
Impact of adoption of credit loss guidance | — | — | — | — | — | — | — | (17,900 | ) | — | (17,900 | ) | ||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 385,898 | — | — | — | — | 385,898 | ||||||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 4,491,566 | 3 | — | — | — | — | — | 3 | ||||||||||||||||||||||||||||||
Issuance ordinary shares related to long-term investment | — | — | — | — | 277,467 | — | — | — | — | 277,467 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares, net of issuance costs of US$563 | — | — | 17,310,696 | 12 | 2,817,446 | — | — | — | — | 2,817,458 | ||||||||||||||||||||||||||||||
Shares redesignation | (1,649,700 | ) | (1 | ) | 1,649,700 | 1 | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Accretion to redeemable noncontrolling interests | — | — | — | — | (4,292 | ) | — | — | — | (1,672 | ) | (5,964 | ) | |||||||||||||||||||||||||||
Capital injection in subsidiaries by noncontrolling interests | — | — | — | — | — | — | — | — | 21,463 | 21,463 | ||||||||||||||||||||||||||||||
Acquisition of subsidiaries | — | — | 270,435 | 0* | 120,865 | — | — | — | 41,627 | 162,492 | ||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | 1,731,100 | 1 | 300,728 | — | — | — | (416,785 | ) | (116,056 | ) | ||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | 4,421 | — | (4,421 | ) | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (325,100 | ) | — | — | (325,100 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2020 | 83,715,114 | 52 | 268,204,838 | 172 | 14,616,302 | 17,884 | 141,129 | (7,175,339 | ) | 182,004 | 7,782,204 | |||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||||||||
Class Y Ordinary Shares | Class Z Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income | Accumulated deficit | Noncontrolling interests | Total shareholders’ equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 85,364,814 | 53 | 226,323,075 | 144 | 9,459,546 | 7,666 | 326,077 | (2,842,690 | ) | 240,406 | 7,191,202 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (1,288,973 | ) | (14,597 | ) | (1,303,570 | ) | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 172,550 | — | — | — | — | 172,550 | ||||||||||||||||||||||||||||||
Issuance of ordinary shares, net of issuance costs of US$9,376 | — | — | 14,173,813 | 10 | 1,647,701 | — | — | — | — | 1,647,711 | ||||||||||||||||||||||||||||||
Acquisition of a subsidiary | — | — | — | — | — | — | — | — | 30,000 | 30,000 | ||||||||||||||||||||||||||||||
Consolidation of an entity under common control (Note 26) | — | — | — | — | (488,463 | ) | — | — | (8,146 | ) | 426,448 | (70,161 | ) | |||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | (73,144 | ) | — | — | — | (102,480 | ) | (175,624 | ) | |||||||||||||||||||||||||||
Share issuance from exercise of share options | — | — | 2,254,453 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||
Deconsolidation of a subsidiary | — | — | — | — | — | — | — | — | 4,199 | 4,199 | ||||||||||||||||||||||||||||||
Appropriation to statutory reserves | — | — | — | — | — | 5,797 | — | (5,797 | ) | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 140,152 | — | — | 140,152 | ||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 85,364,814 | 53 | 242,751,341 | 155 | 10,718,190 | 13,463 | 466,229 | (4,145,606 | ) | 583,976 | 7,636,460 | |||||||||||||||||||||||||||||
* | Less than 1. |
For the Year Ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | 2020 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | (565,021 | ) | (1,303,570 | ) | (3,054,017 | ) | (468,049 | ) | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation of property and equipment | 99,714 | 191,784 | 326,512 | 50,040 | ||||||||||||
Amortization of intangible assets | 542,731 | 905,613 | 1,395,129 | 213,813 | ||||||||||||
Amortization of right-of-use | — | 70,712 | 96,235 | 14,749 | ||||||||||||
Amortization of debt issuance costs | — | 9,117 | 19,291 | 2,956 | ||||||||||||
Share-based compensation expenses | 181,193 | 172,550 | 385,898 | 59,142 | ||||||||||||
Allowance for doubtful accounts | 10,904 | 9,396 | 99,165 | 15,198 | ||||||||||||
Inventory provision | — | 5,987 | 6,218 | 953 | ||||||||||||
Deferred income taxes | — | (10,479 | ) | (13,466 | ) | (2,064 | ) | |||||||||
Unrealized exchange losses /(gains) | 497 | 2,636 | (3,018 | ) | (463 | ) | ||||||||||
Unrealized fair value changes of short-term investments | (1,799 | ) | 17,939 | (39,470 | ) | (6,049 | ) | |||||||||
Fair value changes of long-term investments | 2,072 | 18,444 | (11,171 | ) | (1,712 | ) | ||||||||||
Gain on disposal of long-term investments and subsidiaries | — | (148,776 | ) | — | — | |||||||||||
Loss from equity method investments | — | 24,173 | 50,531 | 7,744 | ||||||||||||
Revaluation of previously held equity interests | (144,434 | ) | — | — | — | |||||||||||
Impairments of long-term investments | 46,375 | 5,900 | 8,000 | 1,226 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 65,612 | (398,968 | ) | (417,237 | ) | (63,944 | ) | |||||||||
Amount due from related parties | 35,118 | 7,382 | 17,015 | 2,608 | ||||||||||||
Prepayments and other assets | (540,647 | ) | (508,515 | ) | (610,592 | ) | (93,577 | ) | ||||||||
Other long-term assets | — | (360,497 | ) | (245,224 | ) | (37,582 | ) | |||||||||
Accounts payable | 345,917 | 586,864 | 816,103 | 125,073 | ||||||||||||
Salary and welfare payable | 95,452 | 101,788 | 374,442 | 57,386 | ||||||||||||
Taxes payable | 13,708 | 23,114 | 54,381 | 8,334 | ||||||||||||
Amount due to related parties | 44,607 | (50,331 | ) | — | — | |||||||||||
Deferred revenue | 398,623 | 353,997 | 734,786 | 112,611 | ||||||||||||
Accrued liabilities and other payables | 106,664 | 277,875 | 651,651 | 99,869 | ||||||||||||
Other long-term liabilities | — | 190,416 | 111,941 | 17,156 | ||||||||||||
Net cash provided by operating activities | 737,286 | 194,551 | 753,103 | 115,418 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (293,566 | ) | (296,044 | ) | (602,122 | ) | (92,279 | ) | ||||||||
Purchase of intangible assets | (1,040,125 | ) | (1,268,830 | ) | (1,636,877 | ) | (250,862 | ) | ||||||||
Purchase of short-term investments | (6,666,731 | ) | (9,973,879 | ) | (26,731,176 | ) | (4,096,732 | ) | ||||||||
Maturities of short-term investments | 6,252,151 | 9,993,525 | 24,921,538 | 3,819,393 | ||||||||||||
Cash consideration paid for purchase of subsidiaries, net of cash acquired | (135,822 | ) | (719,909 | ) | (498,854 | ) | (76,453 | ) | ||||||||
Cash paid for long-term investments including loans | (565,137 | ) | (1,226,794 | ) | (1,261,161 | ) | (193,281 | ) | ||||||||
Repayment of loans from investees | — | 11,000 | 3,500 | 536 | ||||||||||||
Cash received from disposal of long-term investments | 1,250 | 566,554 | 135,254 | 20,729 | ||||||||||||
Impact to cash resulting from deconsolidation of a subsidiary | — | (959 | ) | — | — | |||||||||||
Placements of time deposits | (750,473 | ) | (4,920,099 | ) | (10,907,296 | ) | (1,671,616 | ) | ||||||||
Maturities of time deposits | 2,059 | 3,877,158 | 7,670,373 | 1,175,536 | ||||||||||||
Net cash used in investing activities | (3,196,394 | ) | (3,958,277 | ) | (8,906,821 | ) | (1,365,029 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds of short-term loans | — | 141,857 | 200,000 | 30,651 | ||||||||||||
Repayment of short-term loans | — | (100,000 | ) | (100,000 | ) | (15,326 | ) | |||||||||
P urchase of noncontrolling interests | — | (121,325 | ) | (280,271 | ) | (42,952 | ) | |||||||||
Capital injections from noncontrolling interests | 22,198 | 154,492 | 103,450 | 15,854 | ||||||||||||
Proceeds from exercise of employees’ share options | 6 | 1 | 3 | 0* | ||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs of US$6,333, US$9,376 and US$563, respectively | 4,952,606 | 1,647,711 | 2,817,458 | 431,794 | ||||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$11,805 and US$13,857, respectively | — | 3,356,106 | 5,594,779 | 857,437 | ||||||||||||
Net cash provided by financing activities | 4,974,810 | 5,078,842 | 8,335,419 | 1,277,458 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | 261,447 | 107,513 | (466,252 | ) | (71,456 | ) | ||||||||||
Net increase/(decrease) in cash and cash equivalents | 2,777,149 | 1,422,629 | (284,551 | ) | (43,609 | ) | ||||||||||
Cash and cash equivalents at beginning of the year | 762,882 | 3,540,031 | 4,962,660 | 760,561 | ||||||||||||
Cash and cash equivalents at end of the year | 3,540,031 | 4,962,660 | 4,678,109 | 716,952 | ||||||||||||
Supplemental disclosures of cash flows information: | ||||||||||||||||
Cash paid for income taxes, net of tax refund | 15,765 | 33,734 | 54,022 | 8,279 | ||||||||||||
Cash paid for interest expense | — | 26,203 | 86,167 | 13,206 | ||||||||||||
Supplemental schedule of non-cash investing and financing activities: |
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | (183,750 | ) | (565,021 | ) | (1,303,570 | ) | (187,245 | ) | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation of property and equipment | 38,356 | 99,714 | 191,784 | 27,548 | ||||||||||||
Amortization of intangible assets | 266,042 | 542,731 | 905,613 | 130,083 | ||||||||||||
Amortization of the right-of-use assets | — | — | 70,712 | 10,157 | ||||||||||||
Amortization of debt issuance costs | — | — | 9,117 | 1,310 | ||||||||||||
Share-based compensation expenses | 79,954 | 181,193 | 172,550 | 24,786 | ||||||||||||
Allowance for doubtful accounts | 2,716 | 10,904 | 9,396 | 1,350 | ||||||||||||
Inventory provision | — | — | 5,987 | 860 | ||||||||||||
Deferred income taxes | — | — | (10,479 | ) | (1,505 | ) | ||||||||||
Unrealized exchange (gains)/losses | (115 | ) | 497 | 2,636 | 379 | |||||||||||
Unrealized f air value changes ofshort-term investments | (12,523 | ) | (1,799 | ) | 17,939 | 2,577 | ||||||||||
Fair value changes of long-term investments | — | 2,072 | 18,444 | 2,649 | ||||||||||||
Gain on disposal of long-term investments and subsidiaries | — | — | (148,776 | ) | (21,371 | ) | ||||||||||
Loss from equity method investments, net of dividends received | — | — | 24,173 | 3,472 | ||||||||||||
Revaluation of previously held equity interests | — | (144,434 | ) | — | — | |||||||||||
Impairments of long-term investments | 15,989 | 46,375 | 5,900 | 847 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (283,218 | ) | 65,612 | (398,968 | ) | (57,308 | ) | |||||||||
Receivables due from related parties | (24,660 | ) | 35,118 | 7,382 | 1,060 | |||||||||||
Prepayments and other assets | (247,492 | ) | (540,647 | ) | (508,515 | ) | (73,044 | ) | ||||||||
Other long-term assets | — | — | (360,497 | ) | (51,782 | ) | ||||||||||
Accounts payable | 271,893 | 345,917 | 586,864 | 84,298 | ||||||||||||
Salary and welfare payable | 91,402 | 95,452 | 101,788 | 14,621 | ||||||||||||
Taxes payable | 13,514 | 13,708 | 23,114 | 3,320 | ||||||||||||
Amount due to related parties | 5,724 | 44,607 | (50,331 | ) | (7,230 | ) | ||||||||||
Deferred revenue | 356,413 | 398,623 | 353,997 | 50,848 | ||||||||||||
Accrued liabilities and other payables | 74,305 | 106,664 | 277,875 | 39,914 | ||||||||||||
Other long-term liabilities | — | — | 190,416 | 27,352 | ||||||||||||
Net cash provided by operating activities | 464,550 | 737,286 | 194,551 | 27,946 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (144,906 | ) | (293,566 | ) | (296,044 | ) | (42,524 | ) | ||||||||
Purchase of intangible assets | (485,912 | ) | (1,040,125 | ) | (1,268,830 | ) | (182,256 | ) | ||||||||
Purchase of short-term investments | (4,708,514 | ) | (6,666,731 | ) | (9,973,879 | ) | (1,432,658 | ) | ||||||||
M aturities ofshort-term investments | 4,932,376 | 6,252,151 | 9,993,525 | 1,435,480 | ||||||||||||
Cash consideration paid for purchase of subsidiaries, net of cash acquired | — | (135,822 | ) | (719,909 | ) | (103,408 | ) | |||||||||
Cash paid for long-term investments including loans | (320,088 | ) | (565,137 | ) | (1,226,794 | ) | (176,218 | ) | ||||||||
Repayment of loans from investees | — | — | 11,000 | 1,580 | ||||||||||||
Cash received from disposal of long-term investments | 12,750 | 1,250 | 566,554 | 81,380 | ||||||||||||
Impact to cash resulting from deconsolidation of subsidiar y | — | — | (959 | ) | (137 | ) | ||||||||||
Placement s of time deposits | (1,960 | ) | (750,473 | ) | (4,920,099 | ) | (706,728 | ) | ||||||||
Maturit ies of time deposits | — | 2,059 | 3,877,158 | 556,919 | ||||||||||||
Net cash used in investing activities | (716,254 | ) | (3,196,394 | ) | (3,958,277 | ) | (568,570 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds of short-term loans | 9,000 | — | 141,857 | 20,376 | ||||||||||||
Repayment of short-term loans | — | — | (100,000 | ) | (14,364 | ) | ||||||||||
Repurchase of Pre-IPO Ordinary Shares | (49,086 | ) | — | — | — | |||||||||||
Repurchase of noncontrolling interests | (2,689 | ) | — | (121,325 | ) | (17,427 | ) | |||||||||
Capital injections from noncontrolling interests | — | 22,198 | 154,492 | 22,191 | ||||||||||||
Proceeds from exercise of employees’ share options | — | 6 | 1 | * | ||||||||||||
Proceeds from issuance of ordinary shares, net of issuance costs of US$6,333 US$9,376 , respectively | — | 4,952,606 | 1,647,711 | 236,679 | ||||||||||||
Proceeds from issuance of Pre-IPO Series D1 Preferred Shares, net of NaN issuance costs | 49,086 | — | — | — | ||||||||||||
Proceeds from issuance of Pre-IPO Series D2 Preferred Shares, net of NaN issuance costs | 689,069 | — | — | — | ||||||||||||
Cash and cash equivalents of disposed business in connection with the spin-off transaction | (19,847 | ) | — | — | — | |||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs of US$11,805 | — | — | 3,356,106 | 482,075 | ||||||||||||
Net cash provided by financing activities | 675,533 | 4,974,810 | 5,078,842 | 729,530 | ||||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | 64,605 | — | — | — | ||||||||||||
Accretion to redeemable noncontrolling interests | — | — | 5,964 | 914 | ||||||||||||
Fixed assets purchases financed by accounts payable | 40,277 | 55,759 | 25,797 | 3,954 | ||||||||||||
Acquisitions and investments financed by accrued liabilities and other payables | 502,279 | 79,059 | 125,363 | 19,213 | ||||||||||||
Intangible assets purchases financed by accounts payable | 415,780 | 365,187 | 746,404 | 114,391 | ||||||||||||
Issuance of ordinary shares in the business combination, purchase of noncontrolling interests and investment addition | — | — | 889,957 | 136,392 |
For the Year Ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | 2019 | |||||||||||||
RMB | RMB | RMB | US$ Note 2(e) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies | (48,145 | ) | 261,447 | 107,513 | 15,442 | |||||||||||
Net increase in cash and cash equivalents and restricted cash | 375,684 | 2,777,149 | 1,422,629 | 204,348 | ||||||||||||
Cash and cash equivalents and restricted cash at beginning of the year | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||
Including: | ||||||||||||||||
Cash and cash equivalents at beginning of the year | 387,198 | 762,882 | 3,540,031 | 508,494 | ||||||||||||
Restricted cash at beginning of the year | — | — | — | — | ||||||||||||
Cash and cash equivalents and restricted cash at end of the year | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||
Including: | ||||||||||||||||
Cash and cash equivalents at end of the year | 762,882 | 3,540,031 | 4,962,660 | 712,842 | ||||||||||||
Restricted cash at end of the year | — | — | — | — | ||||||||||||
Supplemental disclosures of cash flows information: | ||||||||||||||||
Cash paid for income taxes, net of tax refund | 6,196 | 15,765 | 33,734 | 4,846 | ||||||||||||
Cash paid for interest expense | — | — | 26,203 | 3,764 | ||||||||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||
Accretion to Pre-IPO Preferred Shares redemption value | 258,554 | 64,605 | — | — | ||||||||||||
Deemed dividend in connection with repurchase of Pre-IPO Preferred Shares | 129,244 | — | — | — | ||||||||||||
Fixed assets purchases financed by accounts payable | 30,050 | 40,277 | 55,759 | 8,009 | ||||||||||||
Acquisitions and investments financed by accrued liabilities and other payables | 6,534 | 502,279 | 79,059 | 11,356 | ||||||||||||
Intangible assets purchases financed by accounts payable | 70,726 | 415,780 | 365,187 | 52,456 |
1. | Operations and Reorganization |
Major Subsidiaries | Place and Year of Incorporation | Percentageof Direct or Indirect EconomicOwnership | Principal Activities | |||
Bilibili HK Limited | Hong Kong Y2014 | 100 | Investment holding | |||
Hode HK Limited | Hong Kong Y2014 | 100 | Investment holding | |||
Bilibili Co., Ltd. | Japan Y2014 | 100 | Business development | |||
Hode Shanghai | PRC Y2014 | 100 | Technology development | |||
Shanghai Bilibili Technology Co., Ltd. | PRC Y2016 | 100 | Technology development |
Major VIEs and VIEs’ subsidiaries | Place and Year of Incorporation Acquisition | Percentageof Director Indirect Economic | Principal Activities | |||
Shanghai Hode Information Technology Co., Ltd. (“ | PRC Y2013 | 100 | Mobile game operation | |||
Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) | PRC Y2014 | 100 | Video distribution | |||
Sharejoy Network Technology Co., Ltd. (“Sharejoy Network”) | PRC Y2014 | 100 | Game | |||
Shanghai Hehehe Culture Communication Co., | PRC Y2014 | 100 | Comics distribution | |||
Shanghai Anime Tamashi Cultural Media Co., Ltd. (“Shanghai Anime Tamashi”) | PRC Y2015 | 100 | E-commerce |
1. | Operations and Reorganization (Continued) |
1. | Operations and Reorganization (Continued) |
1. | Operations and Reorganization (Continued) |
1. | Operations and Reorganization (Continued) |
1. | Operations and Reorganization (Continued) |
1. | Operations and Reorganization (Continued) |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 152,295 | 201,310 | ||||||
Time deposits | 10,265 | 7,674 | ||||||
Accounts receivable, net | 130,823 | 223,438 | ||||||
Amounts due from the Company and its subsidiaries | 165,559 | 127,944 | ||||||
Receivables due from related parties | — | 170,535 | ||||||
Prepayments and other current assets | 841,018 | 999,780 | ||||||
Short-term investments | 252,943 | 672,787 | ||||||
Non-current assets: | ||||||||
Long-term investments, net | 843,149 | 794,549 | ||||||
Other non-current assets | 943,373 | 1,483,983 | ||||||
Total assets | 3,339,425 | 4,682,000 | ||||||
Current liabilities: | ||||||||
Accounts payable | 1,078,070 | 1,454,924 | ||||||
Salary and welfare payable | 94,699 | 128,343 | ||||||
Taxes payable | 27,152 | 33,611 | ||||||
Deferred revenue | 937,086 | 1,234,508 | ||||||
Amounts due to the Company and its subsidiaries | 1,594,527 | 2,650,499 | ||||||
Accrued liabilities and other payables | 318,568 | 222,078 | ||||||
Amount due to related parties | 23,054 | — | ||||||
Non-current liabilities : | ||||||||
Other long-term liabilities | — | 23,108 | ||||||
Total liabilitie s | 4,073,156 | 5,747,071 |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Net revenues: | ||||||||||||
Revenue from third parties | 2,465,296 | 3,691,219 | 6,056,332 | |||||||||
Revenue from the Company and its subsidiaries | 22,751 | 443,405 | 531,830 | |||||||||
Net revenues | 2,488,047 | 4,134,624 | 6,588,162 | |||||||||
Net loss | (63,088 | ) | (587,932 | ) | (448,114 | ) |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Net cash provided by operating activities | 492,063 | 636,972 | 271,299 | |||||||||
Net cash used in investing activities | (632,549 | ) | (674,483 | ) | (1,518,931 | ) | ||||||
Net cash provided by financing activities | 179,707 | 130,592 | 1,300,740 |
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 152,295 | 201,310 | 349,190 | |||||||||
Time deposits | 10,265 | 7,674 | 22,161 | |||||||||
Accounts receivable, net | 130,823 | 223,438 | 343,099 | |||||||||
Amount due from the Company and its subsidiaries | 165,559 | 127,944 | 173,596 | |||||||||
Amount due from related parties | — | 170,535 | 59,117 | |||||||||
Prepayments and other current assets | 841,018 | 999,780 | 1,383,648 | |||||||||
Short-term investments | 252,943 | 672,787 | 1,175,309 | |||||||||
Non-current assets: | ||||||||||||
Long-term investments, net | 843,149 | 794,549 | 1,223,943 | |||||||||
Other non-current assets | 943,373 | 1,483,983 | 2,183,411 | |||||||||
Total assets | 3,339,425 | 4,682,000 | 6,913,474 | |||||||||
Current liabilities: | ||||||||||||
Accounts payable | 1,078,070 | 1,454,924 | 2,332,372 | |||||||||
Salary and welfare payable | 94,699 | 128,343 | 288,686 | |||||||||
Taxes payable | 27,152 | 33,611 | 106,492 | |||||||||
Short-term loans | — | — | 100,000 | |||||||||
Deferred revenue | 937,086 | 1,234,508 | 1,769,992 | |||||||||
Amount due to the Company and its subsidiaries | 1,594,527 | 2,650,499 | 3,752,973 | |||||||||
Accrued liabilities and other payables | 318,568 | 222,078 | 449,370 | |||||||||
Amount due to related parties | 23,054 | — | — | |||||||||
Non-current liabilities: | ||||||||||||
Other long-term liabilities | — | 23,108 | 19,640 | |||||||||
Total liabilities | 4,073,156 | 5,747,071 | 8,819,525 | |||||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB in thousands | ||||||||||||
Net revenues: | ||||||||||||
Revenue from third parties | 3,691,219 | 6,056,332 | 9,651,207 | |||||||||
Revenue from the Company and its subsidiaries | 443,405 | 531,830 | 667,765 | |||||||||
Net revenues | 4,134,624 | 6,588,162 | 10,318,972 | |||||||||
Net loss | (587,932 | ) | (448,114 | ) | (853,970 | ) |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB in thousands | ||||||||||||
Net cash provided by operating activities | 636,972 | 271,299 | 1,476,494 | |||||||||
Net cash used in investing activities | (674,483 | ) | (1,518,931 | ) | (2,421,163 | ) | ||||||
Net cash provided by financing activities | 130,592 | 1,300,740 | 1,090,287 |
1. | Operations and Reorganization (Continued) |
2. | Significant Accounting Policies |
a) | Basis of presentation |
b) | Principles of consolidation |
2. | Significant Accounting Policies (Continued) |
c) | Use of estimates |
d) | Functional currency and foreign currency translation |
e) | Convenience Translation |
2. | Significant Accounting Policies (Continued) |
f) | Fair value measurements |
a. | Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. |
b. | Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. |
c. |
2. | Significant Accounting Policies (Continued) |
g) | Cash and cash equivalents and time deposits |
h) | Receivables, net |
2. | Significant Accounting Policies (Continued) |
h) | Receivables, net (Continued) |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB in thousands | ||||||||||||
Beginning balance prior to ASC 326 | — | — | 17,696 | |||||||||
Impact of adoption to ASC 326 | — | — | 17,900 | |||||||||
Beginning balance | 4,516 | 14,420 | 35,596 | |||||||||
Provisions | 10,904 | 9,396 | 99,165 | |||||||||
Write-offs | (1,000 | ) | (6,120 | ) | (13,758 | ) | ||||||
Ending balance | 14,420 | 17,696 | 121,003 | |||||||||
i) | Inventories, net |
Property and equipment, net |
Significant Accounting Policies (Continued) |
k) | Intangible assets, net |
Licensed copyrights of content | shorter of the licensed period or projected useful life of the content, | |
License rights of mobile games | shorter of the licensed period or projected useful life of mobile games, | |
1 - 10 years, based on the underlying intangible assets expected to contribute to the future cash flows |
Goodwill |
Significant Accounting Policies (Continued) |
m) | Impairment of long-lived assets other than goodwill |
Research and development expenses |
Sales and marketing expenses |
General and administrative expenses |
2. | Significant Accounting Policies (Continued) |
q) | Leases |
2. | Significant Accounting Policies (Continued) |
q) | Leases (Continued) |
December 31, 2019 | ||||
RMB in thousands | ||||
2020 | 93,741 | |||
2021 | 100,109 | |||
2022 | 89,399 | |||
2023 | 28,643 | |||
2024 | 357 | |||
Total future lease payments | 312,249 | |||
Impact of discounting remaining lease payments | (23,298) | |||
Total lease liabilities | 288,951 | |||
December 31, 2020 | ||||
RMB in thousands | ||||
2021 | 156,869 | |||
2022 | 171,923 | |||
2023 | 106,253 | |||
2024 | 43,575 | |||
2025 and thereafter | 17,813 | |||
Total future lease payments | 496,433 | |||
Impact of discounting remaining lease payments | (42,642 | ) | ||
Total lease liabilities | 453,791 | |||
For the Year Ended December 31, | ||||||||
2019 | 2020 | |||||||
RMB in thousands | ||||||||
Cash payments for operating leases | 67,535 | 107,772 | ||||||
Right-of-use | 96,692 | 260,867 | ||||||
Significant Accounting Policies (Continued) |
Leases (Continued) | |||
Operating Leases* | ||||
RMB in thousands | ||||
2019 | 65,400 | |||
2020 | 72,230 | |||
2021 | 73,054 | |||
2022 | 69,681 | |||
Beyond 2022 | 19,544 |
Operating Leases* | ||||
RMB in thousands | ||||
2019 | 65,400 | |||
2020 | 72,230 | |||
2021 | 73,054 | |||
2022 | 69,681 | |||
Beyond 2022 | 19,544 |
* | Amounts are based on ASC 840, Leases , Leases |
Share-based compensation |
2. | Significant Accounting Policies (Continued) |
Impairment of long-lived assets other than goodwill |
n) | Research and development expenses |
o) | Sales and marketing expenses |
p) | General and administrative expenses |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Mobile game | 2,058,226 | 2,936,331 | 3,597,809 | |||||||||
Advertising | 159,160 | 463,490 | 817,016 | |||||||||
Live broadcasting and other VAS | 176,443 | 585,643 | 1,641,043 | |||||||||
E-commerce and others | 74,620 | 143,467 | 722,054 | |||||||||
Total net revenues | 2,468,449 | 4,128,931 | 6,777,922 | |||||||||
2. | Significant Accounting Policies (Continued) |
Leases |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Appropriations to general reserve funds and statutory surplus funds | 2,480 | 3,591 | 5,797 |
2. | Significant Accounting Policies (Continued) |
q) | Leases (Continued) |
December 31, 2020 | ||||
RMB in thousands | ||||
2021 | 156,869 | |||
2022 | 171,923 | |||
2023 | 106,253 | |||
2024 | 43,575 | |||
2025 and thereafter | 17,813 | |||
Total future lease payments | 496,433 | |||
Impact of discounting remaining lease payments | (42,642 | ) | ||
Total lease liabilities | 453,791 | |||
For the Year Ended December 31, | ||||||||
2019 | 2020 | |||||||
RMB in thousands | ||||||||
Cash payments for operating leases | 67,535 | 107,772 | ||||||
Right-of-use | 96,692 | 260,867 | ||||||
2. | Significant Accounting Policies (Continued) |
q) | Leases (Continued) |
Operating Leases* | ||||
RMB in thousands | ||||
2019 | 65,400 | |||
2020 | 72,230 | |||
2021 | 73,054 | |||
2022 | 69,681 | |||
Beyond 2022 | 19,544 |
* | Amounts are based on ASC 840, Leases , Leases |
r) | Share-based compensation |
2. | Significant Accounting Policies (Continued) |
m) | Impairment of long-lived assets other than goodwill |
n) | Research and development expenses |
o) | Sales and marketing expenses |
p) | General and administrative expenses |
2. | Significant Accounting Policies (Continued) |
q) | Leases |
2. | Significant Accounting Policies (Continued) |
q) | Leases (Continued) |
December 31, 2020 | ||||
RMB in thousands | ||||
2021 | 156,869 | |||
2022 | 171,923 | |||
2023 | 106,253 | |||
2024 | 43,575 | |||
2025 and thereafter | 17,813 | |||
Total future lease payments | 496,433 | |||
Impact of discounting remaining lease payments | (42,642 | ) | ||
Total lease liabilities | 453,791 | |||
For the Year Ended December 31, | ||||||||
2019 | 2020 | |||||||
RMB in thousands | ||||||||
Cash payments for operating leases | 67,535 | 107,772 | ||||||
Right-of-use | 96,692 | 260,867 | ||||||
2. | Significant Accounting Policies (Continued) |
q) | Leases (Continued) |
Operating Leases* | ||||
RMB in thousands | ||||
2019 | 65,400 | |||
2020 | 72,230 | |||
2021 | 73,054 | |||
2022 | 69,681 | |||
Beyond 2022 | 19,544 |
* | Amounts are based on ASC 840, Leases , Leases |
r) | Share-based compensation |
2. | Significant Accounting Policies (Continued) |
s) | Employee benefits |
t) | Investments |
2. | Significant Accounting Policies (Continued) |
t) | Investments (Continued) |
2. | Significant Accounting Policies (Continued) |
u) | Taxation |
v) | Revenue recognition |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
2. | Significant Accounting Policies (Continued) |
v) | Revenue recognition (continued) |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB in thousands | ||||||||||||
Mobile games | 2,936,331 | 3,597,809 | 4,803,382 | |||||||||
Value-added services (formerly known as Live broadcasting and VAS) | 585,643 | 1,641,043 | 3,845,663 | |||||||||
Advertising | 463,490 | 817,016 | 1,842,772 | |||||||||
E-commerce and others | 143,467 | 722,054 | 1,507,159 | |||||||||
Total net revenues | 4,128,931 | 6,777,922 | 11,998,976 | |||||||||
3. | Significant Accounting Policies (Continued) |
w) | Cost of revenues |
x) | Related parties |
2. | Significant Accounting Policies (Continued) |
y) | Net loss per share |
z) | Statutory reserves |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB in thousands | ||||||||||||
Appropriations to general reserve funds and statutory surplus funds | 3,591 | 5,797 | 4,421 |
2. | Significant Accounting Policies (Continued) |
aa) | Noncontrolling interests |
bb) | Comprehensive loss |
cc) | Segment reporting |
dd) | Business combinations |
2. | Significant Accounting Policies (Continued) |
dd) | Business combinations (Continued) |
ee) | Recently issued accounting pronouncements |
3. | Concentrations and Risks |
a) | Telecommunications service provider |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Total number of telecommunications service providers | 52 | 88 | 107 | |||||||||
Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure | 2 | 3 | 2 | |||||||||
Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers | 34 | % | 48 | % | 45 | % |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Total number of telecommunications service providers | 88 | 107 | 116 | |||||||||
Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure | 3 | 2 | 3 | |||||||||
Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers | 48 | % | 45 | % | 55 | % |
b) | Foreign currency exchange rate risk |
c) | Credit risk |
RMB in thousands | December 31, 2018 | December 31, 2019 | ||||||
Distribution channel A | 63,762 | 118,860 |
RMB in thousands | December 31, 2018 | December 31, 2019 | December 31, 2020 | |||||||||
Distribution channel A | 63,762 | 118,860 | 146,907 |
3. | Concentrations and Risks (Continued) |
d) | Major customers and supplying channels |
e) | Mobile games |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
Mobile game 1 | 72 | % | 74 | % | 58 | % | ||||||
Mobile game 2 | 13 | % | 11 | % | 10 | % |
Balance at January 1, | Charged to (write- back against) cost and expenses | Write-off ofreceivable balances and corresponding provisions | Balance at December 31, | |||||||||||||
RMB in thousands | ||||||||||||||||
2017 | 1,800 | 2,716 | — | 4,516 | ||||||||||||
2018 | 4,516 | 10,904 | (1,000 | ) | 14,420 | |||||||||||
2019 | 14,420 | 9,396 | (6,120 | ) | 17,696 |
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Mobile game 1 | 53 | % | 31 | % | 11 | % |
Prepayments and Other Current Assets |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Prepayments for revenue sharing cost* | 462,883 | 542,971 | ||||||
Prepayments for content cost | 130,619 | 226,500 | ||||||
Prepayments for sales tax | 80,487 | 157,244 | ||||||
Interest income receivable | 26,812 | 93,688 | ||||||
Inventories, net | 55,032 | 69,914 | ||||||
Loans to investees or ongoing investments | 84,075 | 64,463 | ||||||
Prepayments of marketing and other operational expenses | 33,198 | 53,246 | ||||||
Prepayments /receivable jointly invested contents relating | 44,951 | 43,838 | ||||||
Deposits | 20,447 | 26,301 | ||||||
Prepayments to inventory suppliers | 12,901 | 9,058 | ||||||
Others | 39,446 | 28,678 | ||||||
Total | 990,851 | 1,315,901 | ||||||
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Prepayments for revenue sharing cost* | 462,883 | 542,971 | 782,518 | |||||||||
Prepayments for content cost | 130,619 | 226,500 | 195,175 | |||||||||
Prepayments for sales tax | 80,487 | 157,244 | 202,025 | |||||||||
Interest income receivable | 26,812 | 93,688 | 6,396 | |||||||||
Inventories, net | 55,032 | 69,914 | 160,006 | |||||||||
Loans to investees or ongoing investments | 84,075 | 64,463 | 187,672 | |||||||||
Prepayments of marketing and other operational expenses | 33,198 | 53,246 | 64,068 | |||||||||
Prepayments /receivables relating to jointly invested content | 44,951 | 43,838 | 28,664 | |||||||||
Deposits | 20,447 | 26,301 | 51,661 | |||||||||
Prepayments to inventory suppliers | 12,901 | 9,058 | 19,970 | |||||||||
Others | 39,446 | 28,678 | 67,632 | |||||||||
Total | 990,851 | 1,315,901 | 1,765,787 | |||||||||
* | App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance on-going services toend-users. The related direct and incremental platform commissions as well as game developers’ licensing fees are deferred and reported in “Prepayments and Other Current Assets” on the consolidated balance sheets. |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Financial products | 858,021 | 1,070,113 | ||||||
Investment s in publicly traded companies | — | 80,918 | ||||||
Money market funds | 87,317 | 109,779 | ||||||
Total | 945,338 | 1,260,810 | ||||||
5. | Short-term Investments |
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Financial products | 858,021 | 1,070,113 | 2,866,643 | |||||||||
Investments in publicly traded companies | — | 80,918 | 434,609 | |||||||||
Money market funds | 87,317 | 109,779 | 55,937 | |||||||||
Total | 945,338 | 1,260,810 | 3,357,189 | |||||||||
6. | Property and Equipment, Net |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Leasehold improvements | 51,186 | 76,772 | ||||||
Servers and computers | 481,695 | 765,110 | ||||||
Others | 19,127 | 23,211 | ||||||
Total | 552,008 | 865,093 | ||||||
Less: accumulated depreciation | (157,110 | ) | (349,006 | ) | ||||
Net book value | 394,898 | 516,087 | ||||||
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Leasehold improvements | 51,186 | 76,772 | 118,581 | |||||||||
Servers and computers | 481,695 | 765,110 | 1,286,310 | |||||||||
Others | 19,127 | 23,211 | 30,750 | |||||||||
Total | 552,008 | 865,093 | 1,435,641 | |||||||||
Less: accumulated depreciation | (157,110 | ) | (349,006 | ) | (673,700 | ) | ||||||
Net book value | 394,898 | 516,087 | 761,941 | |||||||||
7. | Intangible Assets, Net |
As of December 31, 2018 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 1,997,175 | (921,565 | ) | 1,075,610 | ||||||||
License rights of mobile games | 18,098 | (15,163 | ) | 2,935 | ||||||||
Domain names and others | 412,202 | (71,312 | ) | 340,890 | ||||||||
Total | 2,427,475 | (1,008,040 | ) | 1,419,435 | ||||||||
As of December 31, 2019 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 3,072,959 | (1,736,608 | ) | 1,336,351 | ||||||||
License rights of mobile games | 71,703 | (35,863 | ) | 35,840 | ||||||||
Domain names and others | 434,089 | (148,947 | ) | 285,142 | ||||||||
Total | 3,578,751 | (1,921,418 | ) | 1,657,333 | ||||||||
As of December 31, 2018 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 1,997,175 | (921,565 | ) | 1,075,610 | ||||||||
License rights of mobile games | 18,098 | (15,163 | ) | 2,935 | ||||||||
Intellectual property and others | 412,202 | (71,312 | ) | 340,890 | ||||||||
Total | 2,427,475 | (1,008,040 | ) | 1,419,435 | ||||||||
As of December 31, 2019 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 3,072,959 | (1,736,608 | ) | 1,336,351 | ||||||||
License rights of mobile games | 71,703 | (35,863 | ) | 35,840 | ||||||||
Intellectual property and others | 434,089 | (148,947 | ) | 285,142 | ||||||||
Total | 3,578,751 | (1,921,418 | ) | 1,657,333 | ||||||||
As of December 31, 2020 | ||||||||||||
Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||
RMB in thousands | ||||||||||||
Licensed copyrights of content | 4,556,683 | (2,891,742 | ) | 1,664,941 | ||||||||
License rights of mobile games | 299,786 | (119,493 | ) | 180,293 | ||||||||
Intellectual property and others | 753,282 | (241,557 | ) | 511,725 | ||||||||
Total | 5,609,751 | (3,252,792 | ) | 2,356,959 | ||||||||
Intangible assets amortization expense | ||||
RMB in thousands | ||||
2020 | 705,062 | |||
2021 | 390,818 | |||
2022 | 228,651 | |||
2023 | 123,159 | |||
2024 | 74,550 | |||
Thereafter | 135,093 | |||
Total expected amortization expense | 1,657,333 | |||
Intangible assets amortization expense | ||||
RMB in thousands | ||||
2021 | 843,542 | |||
2022 | 575,491 | |||
2023 | 340,301 | |||
2024 | 205,238 | |||
2025 | 134,128 | |||
Thereafter | 258,259 | |||
Total expected amortization expense | 2,356,959 | |||
8. | Goodwill |
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Beginning balance | 50,967 | 941,488 | 1,012,026 | |||||||||
Additions (Note 24) | 890,521 | 70,538 | 283,760 | |||||||||
Ending balance | 941,488 | 1,012,026 | 1,295,786 | |||||||||
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Beginning balance | 50,967 | 941,488 | ||||||
Additions (Note 26) | 890,521 | 70,538 | ||||||
Ending balance | 941,488 | 1,012,026 | ||||||
Long-term Investments, Net |
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Equity investments accounted for using the measurement alternative | 793,149 | 666,025 | 1,791,393 | |||||||||
Equity investments accounted for using the equity method | — | 279,854 | 188,199 | |||||||||
Investments accounted for at fair value | 186,838 | 305,250 | 253,346 | |||||||||
Total | 979,987 | 1,251,129 | 2,232,938 | |||||||||
10. | Taxation |
For the Year Ended December 31, | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
RMB in thousands | ||||||||||||
Current income tax expense | 8,881 | 14,909 | 29,452 | |||||||||
Withholding income tax expense | — | 11,079 | 16,894 | |||||||||
Deferred income tax expense | — | — | (10,479 | ) | ||||||||
Total | 8,881 | 25,988 | 35,867 | |||||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB in thousands | ||||||||||||
Current income tax expenses | 14,909 | 29,452 | 48,081 | |||||||||
Withholding income tax expenses | 11,079 | 16,894 | 18,754 | |||||||||
Deferred tax benefits | — | (10,479 | ) | (13,466 | ) | |||||||
Total | 25,988 | 35,867 | 53,369 | |||||||||
a) | Income taxes |
10. | Taxation (Continued) |
a) | Income taxes (Continued) |
For the Year Ended | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
% | % | % | ||||||||||
Statutory income tax rate | 25.00 | 25.00 | 25.00 | |||||||||
Permanent differences | (13.22 | ) | (3.76 | ) | (0.83 | ) | ||||||
Tax rate difference from statutory rate in other jurisdictions* | (20.07 | ) | (0.92 | ) | (0.39 | ) | ||||||
Tax effect of preferential tax treatments | 3.76 | (3.15 | ) | (8.48 | ) | |||||||
Withholding tax | — | (2.05 | ) | (1.33 | ) | |||||||
Change in valuation allowance | (0.55 | ) | (19.94 | ) | (16.80 | ) | ||||||
Effective income tax rate | (5.08 | ) | (4.82 | ) | (2.83 | ) | ||||||
For the Year Ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
% | % | % | ||||||||||
Statutory income tax rate | 25.00 | 25.00 | 25.00 | |||||||||
Permanent differences | (3.76 | ) | (0.83 | ) | 0.60 | |||||||
Tax rate difference from statutory rate in other jurisdictions* | (0.92 | ) | (0.39 | ) | (3.90 | ) | ||||||
Tax effect of preferential tax treatments | (3.15 | ) | (8.48 | ) | (8.29 | ) | ||||||
Withholding tax | (2.05 | ) | (1.33 | ) | (0.63 | ) | ||||||
Change in valuation allowance | (19.94 | ) | (16.80 | ) | (14.56 | ) | ||||||
Effective income tax rate | (4.82 | ) | (2.83 | ) | (1.78 | ) | ||||||
* | It is primarily due to the tax effect of the Company as a tax-exempt entity incorporated in the Cayman Islands. |
RMB in thousands | ||||
thousands | ||||
Loss expiring in 2021 | ||||
Loss expiring in 2022 | ||||
Loss expiring in 2023 | ||||
Loss expiring in 2024 | 208,366 | |||
3,201,799 | ||||
Total | ||||
Taxation (Continued) |
b) | Sales tax |
c) | Deferred tax assets and liabilities |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Deferred tax assets: | ||||||||
Deferred revenue, primarily for games | 90,311 | 95,806 | ||||||
Accrued expenses and other payables | 25,984 | 82,351 | ||||||
Advertising expenses in excess of deduction limit | 312 | 7,507 | ||||||
Net operating tax loss carry forwards | 176,439 | 360,975 | ||||||
Others | 909 | 1,199 | ||||||
Total deferred tax assets | 293,955 | 547,838 | ||||||
Less: valuation allowance | (293,955 | ) | (537,359 | ) | ||||
Net deferred tax assets | — | 10,479 | ||||||
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Deferred tax assets: | ||||||||||||
Deferred revenue | 90,311 | 95,806 | 163,620 | |||||||||
Accrued expenses and other payables | 25,984 | 82,351 | 128,886 | |||||||||
Advertising expenses in excess of deduction limit | 312 | 7,507 | 65,674 | |||||||||
Net operating tax loss carry forwards | 176,439 | 360,975 | 621,035 | |||||||||
Others | 909 | 1,199 | 19,036 | |||||||||
Total deferred tax assets | 293,955 | 547,838 | 998,251 | |||||||||
Less: valuation allowance | (293,955 | ) | (537,359 | ) | (977,333 | ) | ||||||
Net deferred tax assets | — | 10,479 | 20,918 | |||||||||
Deferred tax liabilities | ||||||||||||
Acquired intangible assets (Note 24) | — | — | (46,112 | ) | ||||||||
Total deferred tax liabilities | — | — | (46,112 | ) | ||||||||
Balance at January 1 | Re-measurement due to applicable preferential tax rate for HNTE | Addition | Expiration of loss carry forward and impact of disposal of subsidiaries | Balance at December 31 | ||||||||||||||||||
RMB in thousands | ||||||||||||||||||||||
2017 | (183,091 | ) | 23,074 | (962 | ) | 3,715 | (157,264 | ) | ||||||||||||||
2018 | (157,264 | ) | 22,502 | (159,690 | ) | 497 | (293,955 | ) | ||||||||||||||
2019 | (293,955 | ) | — | (248,896 | ) | 5,492 | (537,359 | ) |
Balance at January 1 | Re-measurement due to applicable preferential tax rate | Addition | Expiration of loss carry forward and impact of disposal of subsidiaries | Balance at December 31 | ||||||||||||||||
RMB in thousands | ||||||||||||||||||||
2018 | (157,264 | ) | 22,502 | (159,690 | ) | 497 | (293,955 | ) | ||||||||||||
2019 | (293,955 | ) | — | (248,896 | ) | 5,492 | (537,359 | ) | ||||||||||||
2020 | (537,359 | ) | 105 | (484,445 | ) | 44,366 | (977,333 | ) |
Taxation (Continued) |
d) | Withholding income tax on dividends |
11. | Taxes Payable |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Withholding individual income taxes for employees | 7,844 | 12,941 | ||||||
VAT payable | 13,920 | 16,519 | ||||||
EIT payable | 6,913 | 20,599 | ||||||
Withholding income tax payable | 5,510 | 12,302 | ||||||
Others | 4,318 | 5,495 | ||||||
Total | 38,505 | 67,856 | ||||||
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
VAT payable | 13,920 | 16,519 | 50,881 | |||||||||
EIT payable | 6,913 | 20,599 | 31,181 | |||||||||
Withholding individual income taxes for employees | 7,844 | 12,941 | 20,465 | |||||||||
Withholding income tax payable | 5,510 | 12,302 | 18,300 | |||||||||
Others | 4,318 | 5,495 | 6,365 | |||||||||
Total | 38,505 | 67,856 | 127,192 | |||||||||
12. | Accrued Liabilities and Other s |
December 31, 2018 | December 31, 2019 | |||||||
RMB in thousands | ||||||||
Accrued marketing expenses | 71,217 | 229,457 | ||||||
Leasing liabilities - current portion | — | 95,901 | ||||||
Consideration payable for acquisitions and investments | 502,279 | 79,059 | ||||||
Advances to/payables from third parties | 21,966 | 76,893 | ||||||
Payables to producers and licensors | 9,357 | 25,898 | ||||||
Professional fees | 13,492 | 22,562 | ||||||
Other staff related cost | 18,685 | 13,791 | ||||||
Interest payable | — | 11,990 | ||||||
Others | 33,446 | 20,212 | ||||||
Total | 670,442 | 575,763 | ||||||
December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||
RMB in thousands | ||||||||||||
Accrued marketing expenses | 71,217 | 229,457 | 783,455 | |||||||||
Leasing liabilities - current portion | — | 95,901 | 150,402 | |||||||||
Consideration payable for acquisitions and investments | 502,279 | 79,059 | 125,363 | |||||||||
Payables to producers and licensors | 9,357 | 25,898 | 63,307 | |||||||||
Professional fees | 13,492 | 22,562 | 38,573 | |||||||||
Other staff related cost | 18,685 | 13,791 | 13,872 | |||||||||
Interest payable | — | 11,990 | 14,041 | |||||||||
Advances from/payables to third parties | 21,966 | 76,893 | 5,869 | |||||||||
Others | 33,446 | 20,212 | 42,794 | |||||||||
Total | 670,442 | 575,763 | 1,237,676 | |||||||||
Long-term |
13. | Long-term Debt (Continued) |
December 31, 2019 | December 31, 2020 | Effective interest rate | ||||||||||
Amounts | Amounts | |||||||||||
RMB in thousands | ||||||||||||
US$500,000 1.375% notes due 2026 | 3,414,628 | 3,204,309 | 1.74 | % | ||||||||
US$800,000 1.25% notes due 2027 | — | 5,136,613 | 1.52 | % | ||||||||