☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (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 | Name of Each Exchange On Which Registered | ||
American depositary shares, every three of which represent two Class A common shares Class A common shares, par value US$0.0001 per share* | JG | The Nasdaq Stock Market LLC (The Nasdaq Global Market) |
* | Not for trading, but only in connection with the listing on the Nasdaq Global 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 | ☐ |
1 | ||||||
2 | ||||||
3 | ||||||
Item 1. | 3 | |||||
Item 2. | 3 | |||||
Item 3. | 3 | |||||
Item 4. | ||||||
95 | ||||||
Item 5. | 95 | |||||
Item 6. | 114 | |||||
Item 7. | 124 | |||||
Item 8. | ||||||
Item 9. | ||||||
Item 10. | ||||||
Item 11. | ||||||
Item 12. | ||||||
Item 13. | ||||||
Item 14. | 142 | |||||
Item 15. | ||||||
Item 16A. | ||||||
Item 16B. | ||||||
Item 16C. | ||||||
Item 16D. | ||||||
Item 16E. | ||||||
Item 16F. | 144 | |||||
Item 16G. | ||||||
Item 16H. | 145 | |||||
Item 16I. | 145 | |||||
PART III | ||||||
Item 17. | ||||||
Item 18. | ||||||
Item 19. | ||||||
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
OFFER STATISTICS AND EXPECTED TIMETABLE |
KEY INFORMATION |
Aurora Mobile Limited is not an operating company in China but a Cayman Islands holding company with no equity ownership in its variable interest entity, or VIE. We conduct our operations in China primarily through our PRC subsidiary and our VIE. PRC laws and regulations restrict and impose conditions on foreign investment in businesses providing certain value-added telecommunications services in China. Accordingly, we operate these businesses in China through our VIE. Investors in our ADSs are not purchasing equity interest in our operating entities in China but instead are purchasing equity interest in a holding company incorporated in the Cayman Islands. As used in this annual report, “Aurora” refers to Aurora Mobile Limited, and “we,” “us,” “our company,” or “our” refers to Aurora Mobile Limited and its subsidiaries, and, when describing our operations and consolidated financial information, also includes our VIE and its subsidiaries in China. We refer to Shenzhen Hexun Huagu Information Technology Co., Ltd., or Hexun Huagu, as “our VIE”, and to JPush Information Consultation (Shenzhen) Co., Ltd., or Shenzhen JPush, as “our WFOE” in this annual report. Investors in our ADSs are not purchasing equity interest in our operating entities in China but instead are purchasing equity interest in a holding company incorporated in the Cayman Islands. We, through our WFOE, have entered into a series of contractual arrangements with our VIE and the nominee shareholders of our VIE. These contractual arrangements enable us to: (i) exercise effective control over our VIE; (ii) receive the economic benefits that could potentially be significant to our VIE in consideration for the services provided by our WFOE; and (iii) hold an exclusive option to purchase all or part of the equity interests in and assets of our VIE when and to the extent permitted by PRC law. Because of these contractual arrangements, we are the primary beneficiary of our VIE and hence consolidate its financial results with ours under U.S. GAAP. In 2019, 2020 and 2021, we derived 98.6%, 97.7% and 95.0% of our external revenues from our VIE, respectively. These contractual agreements include exclusive option agreements, exclusive business cooperation agreement, financial support agreement, shareholder voting proxy agreement and equity interest pledge agreements. Pursuant to the exclusive option agreements, each shareholder of our VIE has irrevocably granted our WFOE an exclusive option to purchase all or part of his equity interests in our VIE, and our VIE has irrevocably granted our WFOE an exclusive option to purchase all or part of its assets. Pursuant to the exclusive business cooperation agreement, our WFOE has the exclusive right to provide our VIE comprehensive business support, technical services, consulting services and other services. Pursuant to the financial support agreement, we undertake to provide unlimited financial support to our VIE to the extent permissible under the applicable PRC laws and regulations, whether or not any operational loss is actually incurred by our VIE. Each of the shareholders of our VIE has also executed a shareholder voting proxy agreement to irrevocably authorize our company to act as his attorney-in-fact to However, the contractual arrangements may not be as effective as direct ownership in providing us with control over our VIE, and we may incur substantial costs to enforce the terms of the arrangements. In addition, these agreements have not been tested in China courts. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure—We rely on contractual arrangements with our VIE and its shareholders for substantially all of our business operation, which may not be as effective as direct ownership” and “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure—The shareholders of our VIE may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition.” 3 The legal environment in the PRC is not as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit our ability, as a Cayman holding company, to enforce these contractual arrangements and doing so may be quite costly. There are also substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations and rules regarding the status of the rights of our Cayman Islands holding company with respect to its contractual arrangements with our VIE and its shareholders. It is uncertain whether any new PRC laws or regulations relating to variable interest entity structures will be adopted or if adopted, what they would provide. If we or our VIE are found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Uncertainties with respect to the PRC legal system and changes in laws and regulations in China could adversely affect us,” “—Risks Related to Our Corporate Structure—If the PRC government finds that the agreements that establish the structure for operating some of our business operations in China do not comply with PRC regulations relating to the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject to severe penalties, or be forced to relinquish our interest in those operations,” and “—Our business may be significantly affected by the newly enacted PRC Foreign Investment Law.” Our corporate structure is subject to risks associated with our contractual arrangements with our VIE. If the PRC government deems that our contractual arrangements with our VIE do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change or are interpreted differently in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. Our holding company, our PRC subsidiaries and VIE, and investors of our company face uncertainty about potential future actions by the PRC government that could affect the enforceability of the contractual arrangements with our VIE and, consequently, significantly affect the financial performance of our VIE and our company as a whole. For a detailed description of the risks associated with our corporate structure, please refer to risks disclosed under “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure.” In addition, our VIE is owned principally by Mr. Weidong Luo, who hold 80% of our VIE. Mr. Luo also has 76. 4% of the total voting power of Aurora. Accordingly, the enforceability of the various contracts described above by our company against our VIE is dependent upon Mr. Luo. If he fails to perform his obligations under the contractual arrangements, we could be unable to enforce the contractual arrangements that give us effective control over our VIE. If this happens, we would need to deconsolidate our VIE. The majority of our assets, including the necessary licenses to conduct business in China are held by our VIE. A significant part of our revenues is generated by our VIE. An event that results in the deconsolidation of our VIE would have a material effect on our operations and result in the value of the securities diminish substantially or even become worthless. For a detailed description of the risks associated with our corporate structure, see “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure.” We face various risks and uncertainties related to doing business in China. Our business operations are primarily conducted in China, and we are subject to complex and evolving PRC laws and regulations. For example, we face risks associated with regulatory approvals on offshore offerings, anti-monopoly regulatory actions, and oversight on cybersecurity and data privacy, as well as the lack of inspection by the Public Company Accounting Oversight Board, or the PCAOB, on our auditors as determined by the announcement of the PCAOB issued on December 16, 2021. This may impact our ability to conduct certain businesses, accept foreign investments, or list on a United States or other foreign exchange. These risks could result in a material adverse change in our operations and the value of our ADSs, significantly limit or completely hinder our ability to continue to offer securities to investors, or cause the value of such securities to significantly decline. For a detailed description of risks related to doing business in China, please refer to risks disclosed under “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China.” PRC government’s significant authority in regulating our operations and its oversight and control over offerings conducted overseas by, and foreign investment in, China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Implementation of industry-wide regulations, including data security or anti-monopoly related regulations, in this nature may cause the value of such securities to significantly decline. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The PRC government’s significant oversight and discretion over our business operation could result in a material adverse change in our operations and the value of our ADSs.” 4 Permissions Required from the PRC Authorities for Our Operations We conduct our business in China through our subsidiaries and our VIE in China. Our operations in China are governed by PRC laws and regulations. As of the date of this annual report, and except otherwise disclosed in this annual report, our PRC subsidiaries and VIE have obtained the requisite licenses and permits from the PRC government authorities that are material for the business operations of our holding company and our VIE in China, including, among others, two value-added telecommunication business licenses covering different scope of operations and a foreign-related investigation license. Our VIE may also be required to obtain the personal credit reporting business license. The PRC government has adopted several regulations governing personal credit reporting businesses. According to the Administrative Regulations on the Credit Reporting Industry, which was promulgated by the State Council and became effective in 2013, “personal credit reporting business” means the activities of collecting, organizing, storing and processing “information related to the credit standing” of individuals as well as providing the information to others, and a “credit reporting agency” refers to a duly established agency whose primary business is credit reporting. Under the Administrative Regulations on the Credit Reporting Industry and the Administrative Measures for Credit Reporting Agencies, the latter of which was promulgated by the People’s Bank of China and became effective in 2013, no entity may engage in personal credit reporting business without approval by the credit reporting industry regulatory department under the State Council. On September 27, 2021, the PBOC promulgated the Administrative Measures for Credit Information Services, or the Credit Information Services Measures, which took effect on January 1, 2022. Pursuant to the Credit Information Services Measures, Credit Information Services, shall mean the collection, sorting, retention, and processing of credit information of enterprises and individuals, and the provision of the foregoing information to information users. Credit information, shall mean the basic individual information, lending information and other relevant information used for identification and determination of creditworthiness status of enterprises and individuals, and collected pursuant to the law for the purpose of providing services for financial activities, as well as the analyzed and evaluated information formed based on the foregoing information. Persons engaging in personal credit information services shall obtain the personal credit information organization license issued by the PBOC pursuant to the Credit Information Services Measures. Our VIE provides financial risk management solutions to financial institutions as well as emerging technology companies based on device-level mobile behavior data. Due to the lack of further interpretations of the current regulations governing personal credit reporting businesses, the exact definition and scope of “information related to credit standing” and “personal credit reporting business” under the current regulations are unclear. It is therefore uncertain whether our VIE would be deemed to engage in personal credit reporting business because of our financial risk management solutions. As of the date of this annual report, we have not been subject to any fines or other penalties under any PRC laws or regulations related to personal credit reporting business. See “Item 4. Information on the Company—B. Business Overview—Regulations—Regulations on Credit Reporting.” Given the uncertainties of interpretation and implementation of relevant laws and regulations and the enforcement practice by relevant government authorities, we may be required to obtain additional licenses, permits, filings or approvals for the functions and services of our platform in the future. For more detailed information, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—We may be adversely affected by the complexity, uncertainties and changes in PRC regulation of internet-related businesses and companies, and any lack of requisite approvals, licenses or permits applicable to our business may have a material adverse effect on our business and results of operations.” Furthermore, except as disclosed in this annual report, in connection with our issuance of securities to foreign investors, under current PRC laws, regulations and regulatory rules, as of the date of this annual report, we, our PRC subsidiaries and our VIE, (i) are not required to obtain permissions from the China Securities Regulatory Commission, or the CSRC, and (ii) have not received or were denied such requisite permissions by any PRC authority. We are subject to the risks of uncertainty of any future actions of the PRC government in this regard including the risk that we inadvertently conclude that the permission or approvals discussed here are not required, that applicable laws, regulations or interpretations change such that we are required to obtain approvals in the future. 5 However, the PRC government has recently indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. On December 28, 2021, the Cyberspace Administration of China published the Measures for Cybersecurity Review, or Cybersecurity Review Measures, which replaced the current Measures for Cybersecurity Review after it was adopted and became effective on February 15, 2022. The Cybersecurity Review Measures, among others, stipulate that if an operator has personal information of over one million users and intends to be listed in a foreign country, it must be subject to the cybersecurity review. The Cybersecurity Review Measures remain unclear on whether the relevant requirements will be applicable to further equity or debt offerings by companies that have completed the initial public offering in the United States. We cannot assure you the clear impact of the Cybersecurity Review Measures, or the authorities would hold the same opinions with us regarding the newly-effective laws, and we will closely monitor and assess the statutory developments in this regard. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—Our and our VIE’s business generates and processes a large amount of data, and we are required to comply with PRC and other applicable laws relating to privacy and cybersecurity. The improper use or disclosure of data could have a material and adverse effect on our business and prospects.” Under Cybersecurity Review Measures and other PRC cybersecurity laws and regulations, critical information infrastructure operators that intend to purchase internet products and services that affect or may affect national security must be subject to the cybersecurity review. As advised by our PRC legal counsel, the PRC governmental authorities may have wide discretion in the interpretation and enforcement of these laws, including the interpretation of the scope of “critical information infrastructure operators.” See “Item 4. Information on the Company—B. Business Overview—Regulations—Regulations on Personal Information Protection.” In addition, the Cybersecurity Review Measures also stipulate that any data processor carrying out data processing activities that affect or may affect national security should also be subject to the cybersecurity review. In anticipation of the strengthened implementation of cybersecurity laws and regulations and the continued expansion of our business, we face potential risks if we are deemed as a critical information infrastructure operator under the PRC cybersecurity laws and regulations. In such case, we must fulfill certain obligations as required under the PRC cybersecurity laws and regulations, including, among others, storing personal information and important data collected and produced within the PRC territory during our operations in China, which we have fulfilled in our business, and we may be subject to review when purchasing internet products and services. Furthermore, we may be subject to review when conducting data processing activities, and may face challenges in addressing its requirements and make necessary changes to our internal policies and practices in data processing. As of the date of this annual report, we have not been involved in any investigations on cybersecurity review made by the Cyberspace Administration of China on such basis, and we have not received any inquiry, notice, warning, or sanctions in such respect. On July 6, 2021, the relevant PRC governmental authorities made public the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law. These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based companies and proposed to take effective measures, such as promoting the construction of relevant regulatory systems to deal with the risks and incidents faced by China-based overseas-listed companies. As these opinions are recently issued, official guidance and related implementation rules have not been issued yet and the interpretation of these opinions remains unclear at this stage. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The approval and/or other requirements of the CSRC or other PRC governmental authorities may be required in connection with an offering under PRC rules, regulations or policies, and, if required, we cannot predict whether or how soon we will be able to obtain such approval.” As of the date of this annual report, we have not received any inquiry, notice, warning, or sanctions regarding offshore offering from the CSRC or any other PRC governmental authorities. In addition to the approval of the CSRC or other PRC government authorities that may be required in connection with our offshore offerings, our VIE is required to obtain and maintain applicable licenses and approvals from different regulatory authorities to provide their current services. Under the current PRC regulatory scheme, a number of regulatory agencies, including but not limited to the Ministry of Industry and Information Technology, or MIIT, and Cyberspace Administration of China, jointly regulate all major aspects of the internet industry, including the mobile internet business. Operators must obtain government approvals and licenses for relevant telecommunications business. Our VIE also provides mobile app data analysis product to both domestic and foreign financial industry clients, and may be considered as engaging in foreign-related investigation business. As such, under the current PRC regulatory scheme, our VIE may be required to obtain a foreign-related investigation license. See “Item 4. Information on the Company—B. Business Overview—Regulations—Regulations on Telecommunications Services and Foreign Ownership Restrictions” and “Item 4. Information on the Company—B. Business Overview—Regulations—Regulations on Foreign-related Investigation.” 6 Cash Flows through Our Organization Aurora is a holding company with no material operations of its own. We conduct our operations primarily through our WFOE and our VIE. As a result, Aurora’s ability to pay dividends depends upon dividends paid by our WFOE. If our WFOE or any newly formed PRC subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, our WFOE is permitted to pay dividends to us only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of our WFOE and our VIE is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, our WFOE may allocate a portion ofits after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at its discretion, and our VIE may allocate a portion ofits after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. For more details, see “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Holding Company Structure.”Under PRC laws and regulations, our PRC subsidiaries and VIE are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets to us. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by SAFE. Our WFOE has not paid dividends and will not be able to pay dividends until it generates accumulated profits and meets the requirements for statutory reserve funds. The net liabilities of our VIE, in which we have no legal ownership, amounted to RMB81 million, RMB240 million and RMB326 million (US$51 million) as of December 31, 2019, 2020 and 2021, respectively. For restrictions and limitations on our ability to distribute earnings from our businesses, including subsidiaries and VIE, to Aurora and investors as well as the ability to settle amounts owed under the VIE agreements, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from using the proceeds of our initial public offering to make loans or additional capital contributions to our PRC subsidiary, which could materially and adversely affect our liquidity and our ability to fund and expand our business,” “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—We may rely on dividends and other distributions on equity paid by our PRC subsidiary to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiary to make payments to us could have a material and adverse effect on our ability to conduct our business” and “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Governmental control of currency conversion may limit our ability to utilize our cash balance effectively and affect the value of your investment.” Our subsidiaries and our VIE conduct business transactions that include provision of services and intercompany loans, and collection of employee’s individual income tax from the exercise of share options, subject to satisfaction of applicable government registration and approval requirements. The cash flows occurred between our subsidiaries and our VIE are summarized below:
With respect to intercompany loans, our VIE received cash from our subsidiary amounted to RMB197.9 million, nil and RMB80.0 million (US$12.6 million) for the year ended December 31, 2019, 2020 and 2021, respectively, and repaid cash to our subsidiary amounted to nil, RMB156.1 million and RMB56.3 million (US$8.8 million) for the year ended December 31, 2019, 2020 and 2021, respectively. With respect to the collection of employee’s individual income tax from the exercise of share options, our VIE received cash from our subsidiary amounted to RMB5.1 million, RMB0.9 million and RMB2.6 million (US$0.4 million) for the year ended December 31, 2019, 2020 and 2021, respectively, which were then remitted to local tax authorities on behalf of our employees. 7 Aurora has not declared or paid any cash dividends, nor does it has any present plan to pay any cash dividends on our ordinary shares in the foreseeable future. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Dividend Policy.” For PRC and United States federal income tax considerations of an investment in our ADSs, see “Item 10. Additional Information—E. Taxation.” Financial Information Related to Our VIE, Parent and Its Subsidiaries The following tables provide condensed consolidating schedules depicting the financial position, cash flows, and results of operations for the parent, subsidiaries, the consolidated VIE, and any eliminating adjustments and consolidated totals (in thousands of RMB) as of and for the years ended December 31, 2019, 2020 and 2021. Selected Condensed Consolidating Schedule of Results of Operations
Selected Condensed Consolidating Schedule of Financial Position
8
Selected Condensed Consolidating Schedules of Cash Flows
9
A. | Selected Financial Data |
For the Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for per share data) | ||||||||||||||||||||||||
Consolidated Statements of Operations Data: | ||||||||||||||||||||||||
Revenues | 70,322 | 284,709 | 714,141 | 906,458 | 471,614 | 72,278 | ||||||||||||||||||
Cost of revenues (1) | (47,722 | ) | (213,370 | ) | (517,074 | ) | (649,596 | ) | (265,436 | ) | (40,680 | ) | ||||||||||||
Gross profit | 22,600 | 71,339 | 197,067 | 256,862 | 206,178 | 31,598 | ||||||||||||||||||
Operating expenses: (1) | ||||||||||||||||||||||||
Research and development expenses | (33,717 | ) | (71,651 | ) | (134,358 | ) | (176,248 | ) | (174,597 | ) | (26,758 | ) | ||||||||||||
Sales and marketing expenses | (33,062 | ) | (59,673 | ) | (83,853 | ) | (118,548 | ) | (102,319 | ) | (15,681 | ) | ||||||||||||
General and administrative expenses | (13,480 | ) | (32,431 | ) | (71,641 | ) | (109,291 | ) | (119,087 | ) | (18,251 | ) | ||||||||||||
Total operating expenses | (80,259 | ) | (163,755 | ) | (289,852 | ) | (404,087 | ) | (396,003 | ) | (60,690 | ) | ||||||||||||
Loss from operations | (57,659 | ) | (92,416 | ) | (92,785 | ) | (147,225 | ) | (189,825 | ) | (29,092 | ) | ||||||||||||
Loss before income taxes | (57,472 | ) | (94,271 | ) | (66,167 | ) | (109,679 | ) | (224,989 | ) | (34,480 | ) | ||||||||||||
Net loss | (61,382 | ) | (90,291 | ) | (66,197 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (61,382 | ) | (90,291 | ) | (66,197 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||||||
Accretion of contingently redeemable convertible preferred shares | (12,427 | ) | (26,391 | ) | (24,094 | ) | — | — | — | |||||||||||||||
Net loss attributable to common shareholders | (73,809 | ) | (116,682 | ) | (90,291 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||||||
Net loss per common share: | ||||||||||||||||||||||||
Basic and diluted | (1.73 | ) | (2.73 | ) | (1.57 | ) | (1.43 | ) | (2.91 | ) | (0.45 | ) | ||||||||||||
Weighted average number of shares used in calculating basic and diluted loss per common share: | ||||||||||||||||||||||||
Common shares — Basic and diluted | 42,666,670 | 42,666,670 | — | — | — | — | ||||||||||||||||||
Class A common share — Basic and diluted | — | — | 40,441,999 | 59,721,341 | 60,415,978 | 60,415,978 | ||||||||||||||||||
Class B common share — Basic and diluted | — | — | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 |
For the Year Ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for per share data) | ||||||||||||||||||||||||
Consolidated Statements of Operations Data: | ||||||||||||||||||||||||
Revenues | 284,709 | 714,141 | 906,458 | 471,614 | 357,322 | 56,072 | ||||||||||||||||||
Cost of revenues (1) | (213,370 | ) | (517,074 | ) | (649,596 | ) | (265,436 | ) | (92,393 | ) | (14,498 | ) | ||||||||||||
Gross profit | 71,339 | 197,067 | 256,862 | 206,178 | 264,929 | 41,574 | ||||||||||||||||||
Operating expenses: (1) | ||||||||||||||||||||||||
Research and development expenses | (71,651 | ) | (134,358 | ) | (176,248 | ) | (174,597 | ) | (206,722 | ) | (32,439 | ) | ||||||||||||
Sales and marketing expenses | (59,673 | ) | (83,853 | ) | (118,548 | ) | (102,319 | ) | (116,415 | ) | (18,268 | ) | ||||||||||||
General and administrative expenses | (32,431 | ) | (71,641 | ) | (109,291 | ) | (119,087 | ) | (79,922 | ) | (12,542 | ) | ||||||||||||
Total operating expenses | (163,755 | ) | (289,852 | ) | (404,087 | ) | (396,003 | ) | (403,059 | ) | (63,249 | ) | ||||||||||||
Loss from operations | (92,416 | ) | (92,785 | ) | (147,225 | ) | (189,825 | ) | (138,130 | ) | (21,675 | ) | ||||||||||||
Loss before income taxes | (94,271 | ) | (66,167 | ) | (109,679 | ) | (224,989 | ) | (140,552 | ) | (22,055 | ) | ||||||||||||
Net loss | (90,291 | ) | (66,197 | ) | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (90,291 | ) | (66,197 | ) | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||||||
Accretion of contingently redeemable convertible preferred shares | (26,391 | ) | (24,094 | ) | — | — | — | — | ||||||||||||||||
Net loss attributable to common shareholders | (116,682 | ) | (90,291 | ) | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||||||
Net loss per common share: | ||||||||||||||||||||||||
Basic and diluted | (2.73 | ) | (1.57 | ) | (1.43 | ) | (2.91 | ) | (1.78 | ) | (0.28 | ) | ||||||||||||
Weighted average number of shares used in calculating basic and diluted loss per common share: | ||||||||||||||||||||||||
Common shares — Basic and diluted | 42,666,670 | — | — | — | — | — | ||||||||||||||||||
Class A common share — Basic and diluted | — | 40,441,999 | 59,721,341 | 60,415,978 | 61,809,501 | 61,809,501 | ||||||||||||||||||
Class B common share — Basic and diluted | — | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 |
(1) | Share-based compensation expenses are allocated in cost of revenues and operating expenses as follows: |
For the Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
Cost of revenue | — | — | — | 73 | 4 | 1 | ||||||||||||||||||
Research and development expenses | 664 | 1,408 | 9,448 | 12,819 | 7,176 | 1,100 | ||||||||||||||||||
Sales and marketing expenses | 189 | 944 | 3,347 | 6,040 | 3,965 | 608 | ||||||||||||||||||
General and administrative expenses | 1,850 | 5,923 | 11,766 | 28,352 | 17,713 | 2,715 | ||||||||||||||||||
Total | 2,703 | 8,275 | 24,561 | 47,284 | 28,858 | 4,424 | ||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Consolidated Balance Sheet Data: | ||||||||||||||||||||||||
Cash and cash equivalents | 103,168 | 208,161 | 576,562 | 431,459 | 356,115 | 54,577 | ||||||||||||||||||
Accounts and notes receivable, net | 9,444 | 49,594 | 141,911 | 135,417 | 44,886 | 6,879 | ||||||||||||||||||
Prepayments and other current assets | 13,508 | 34,228 | 80,578 | 86,087 | 49,013 | 7,511 | ||||||||||||||||||
Total assets | 165,944 | 359,450 | 992,068 | 939,923 | 787,427 | 120,679 | ||||||||||||||||||
Accounts payable | 1,110 | 8,340 | 18,811 | 19,996 | 16,592 | 2,543 | ||||||||||||||||||
Deferred revenue and customer deposits | 18,148 | 49,557 | 59,483 | 77,561 | 109,182 | 16,733 | ||||||||||||||||||
Accrued liabilities and other current liabilities | 19,737 | 52,639 | 76,666 | 96,277 | 109,136 | 16,725 | ||||||||||||||||||
Total liabilities | 53,819 | 117,197 | 390,408 | 432,135 | 466,188 | 71,446 | ||||||||||||||||||
Total mezzanine equity | 220,539 | 466,637 | — | — | — | — | ||||||||||||||||||
Total shareholders’ equity/(deficit) | (108,414 | ) | (224,384 | ) | 601,660 | 507,788 | 321,239 | 49,233 | ||||||||||||||||
Total liabilities, mezzanine equity and equity | 165,944 | 359,450 | 992,068 | 939,923 | 787,427 | 120,679 | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Consolidated Cash Flow Data: | ||||||||||||||||||||||||
Net cash used in operating activities | (42,152 | ) | (75,532 | ) | (97,925 | ) | (25,758 | ) | 75,810 | 11,619 | ||||||||||||||
Net cash used in investing activities | (29,928 | ) | (28,644 | ) | (139,206 | ) | (88,966 | ) | (144,415 | ) | (22,133 | ) | ||||||||||||
Net cash provided by financing activities | (135,348 | ) | 217,446 | 614,884 | (33,883 | ) | 315 | 48 | ||||||||||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash | 2,450 | (8,282 | ) | (9,352 | ) | 3,504 | (7,054 | ) | (1,081 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 65,718 | 104,988 | 368,401 | (145,103 | ) | (75,344 | ) | (11,547 | ) | |||||||||||||||
Cash and cash equivalents and restricted cash at the beginning of year | 37,570 | 103,288 | 208,276 | 576,677 | 431,574 | 66,142 | ||||||||||||||||||
Cash and cash equivalents and restricted cash at the end of year | 103,288 | 208,276 | 576,677 | 431,574 | 356,230 | 54,595 |
For the Year Ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
Cost of revenue | — | — | 73 | 4 | 41 | 6 | ||||||||||||||||||
Research and development expenses | 1,408 | 9,448 | 12,819 | 7,176 | 13,801 | 2,166 | ||||||||||||||||||
Sales and marketing expenses | 944 | 3,347 | 6,040 | 3,965 | 2,609 | 409 | ||||||||||||||||||
General and administrative expenses | 5,923 | 11,766 | 28,352 | 17,713 | 13,761 | 2,160 | ||||||||||||||||||
Total | 8,275 | 24,561 | 47,284 | 28,858 | 30,212 | 4,741 | ||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Consolidated Balance Sheet Data: | ||||||||||||||||||||||||
Cash and cash equivalents | 208,161 | 576,562 | 431,459 | 356,115 | 90,552 | 14,210 | ||||||||||||||||||
Accounts receivable, net | 49,594 | 141,911 | 135,417 | 44,886 | 43,860 | 6,883 | ||||||||||||||||||
Prepayments and other current assets | 34,228 | 80,578 | 86,087 | 49,013 | 46,670 | 7,323 | ||||||||||||||||||
Total assets | 359,450 | 992,068 | 939,923 | 787,427 | 595,537 | 93,453 | ||||||||||||||||||
Accounts payable | 8,340 | 18,811 | 19,996 | 16,592 | 18,292 | 2,870 | ||||||||||||||||||
Deferred revenue and customer deposits | 49,557 | 59,483 | 77,561 | 109,182 | 119,991 | 18,829 | ||||||||||||||||||
Accrued liabilities and other current liabilities | 52,639 | 76,666 | 96,277 | 109,136 | 85,305 | 13,388 | ||||||||||||||||||
Total liabilities | 117,197 | 390,408 | 432,135 | 466,188 | 380,094 | 59,645 | ||||||||||||||||||
Total mezzanine equity | 466,637 | — | — | — | — | — | ||||||||||||||||||
Total shareholders’ deficit | (224,384 | ) | 601,660 | 507,788 | 321,239 | 215,443 | 33,808 | |||||||||||||||||
Total liabilities, mezzanine equity and equity | 359,450 | 992,068 | 939,923 | 787,427 | 595,537 | 93,453 | ||||||||||||||||||
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
Summary of Risk Factors Investing in our ADSs involves significant risks. You should carefully consider all of the information in this annual report before making an investment in our ADSs. Below is a summary of material risks we and our VIE face, organized under relevant headings. These risks are discussed more fully in Item 3. Key Information—D. Risk Factors. |
INFORMATION ON THE COMPANY |
A. | History and Development of the Company |
B. | Business Overview |
C. | Organizational Structure |
(1) | Mr. Weidong Luo, our founder, chairman of our board of directors, chief executive officer and a principal beneficial owner of the shares of our company, holds 80% equity interests in our VIE. Messrs. Xiaodao Wang and Jiawen Fang are both beneficial owners of the shares of our company and they each hold 10% equity interests in our VIE. |
D. | Property, Plant and Equipment |
UNRESOLVED STAFF COMMENTS |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. | Operating Results |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | % | RMB | % | RMB | US$ | % | |||||||||||||||||||||||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentage data) | (in thousands, except for percentage data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Targeted Marketing | 572,796 | 80.2 | 696,190 | 76.5 | 213,662 | 32,745 | 45.3 | 696,190 | 76.5 | 213,662 | 45.3 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
SAAS Businesses | 141,345 | 19.8 | 210,268 | 23.5 | 257,952 | 39,533 | 54.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
SaaS Products | 210,268 | 23.5 | 257,952 | 54.7 | 357,322 | 56,072 | 100.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 714,141 | 100.0 | 906,458 | 100.0 | 471,614 | 72,278 | 100.0 | 906,458 | 100.0 | 471,614 | 100.0 | 357,322 | 56,072 | 100.0 |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||
(in thousands, except for percentage data) | (in thousands, except for percentage data) | |||||||||||||||||||||||||||||||
Gross profit | RMB197,067 | RMB256,862 | RMB206,178 | US$ | 31,598 | RMB256,862 | RMB206,178 | RMB264,929 | US$ | 41,574 | ||||||||||||||||||||||
Gross margin | 27.6 | % | 28.3 | % | 43.7 | % | 43.7 | % | 28.3 | % | 43.7 | % | 74.1 | % | 74.1 | % |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentage data) | ||||||||||||||||||||||||||||
Research and development expenses | 134,358 | 46.4 | 176,248 | 43.6 | 174,597 | 26,758 | 44.1 | |||||||||||||||||||||
Sales and marketing expenses | 83,853 | 28.9 | 118,548 | 29.3 | 102,319 | 15,681 | 25.8 | |||||||||||||||||||||
General and administrative expenses | 71,641 | 24.7 | 109,291 | 27.1 | 119,087 | 18,251 | 30.1 | |||||||||||||||||||||
Total | 289,852 | 100.0 | 404,087 | 100.0 | 396,003 | 60,690 | 100.0 |
For the Year Ended December 31, | ||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||
(in thousands, except for percentage data) | ||||||||||||||||||||||||||||
Research and development expenses | 176,248 | 43.6 | 174,597 | 44.1 | 206,722 | 32,439 | 51.3 | |||||||||||||||||||||
Sales and marketing expenses | 118,548 | 29.3 | 102,319 | 25.8 | 116,415 | 18,268 | 28.9 | |||||||||||||||||||||
General and administrative expenses | 109,291 | 27.1 | 119,087 | 30.1 | 79,922 | 12,542 | 19.8 | |||||||||||||||||||||
Total | 404,087 | 100.0 | 396,003 | 100.0 | 403,059 | 63,249 | 100.0 |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | % | RMB | % | RMB | US$ | % | |||||||||||||||||||||||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 714,141 | 100.0 | 906,458 | 100.0 | 471,614 | 72,278 | 100.0 | 906,458 | 100.0 | 471,614 | 100.0 | 357,322 | 56,072 | 100.0 | ||||||||||||||||||||||||||||||||||||||||||
Cost of revenues (1) | (517,074 | ) | (72.4 | ) | (649,596 | ) | (71.7 | ) | (265,436 | ) | (40,680 | ) | (56.3 | ) | (649,596 | ) | (71.7 | ) | (265,436 | ) | (56.3 | ) | (92,393 | ) | (14,498 | ) | (25.9 | ) | ||||||||||||||||||||||||||||
Gross profit | 197,067 | 27.6 | 256,862 | 28.3 | 206,178 | 31,598 | 43.7 | 256,862 | 28.3 | 206,178 | 43.7 | 264,929 | 41,574 | 74.1 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development expenses | (134,358 | ) | (18.8 | ) | (176,248 | ) | (19.4 | ) | (174,597 | ) | (26,758 | ) | (37.0 | ) | (176,248 | ) | (19.4 | ) | (174,597 | ) | (37.0 | ) | (206,722 | ) | (32,439 | ) | (57.9 | ) | ||||||||||||||||||||||||||||
Sales and marketing expenses | (83,853 | ) | (11.7 | ) | (118,548 | ) | (13.1 | ) | (102,319 | ) | (15,681 | ) | (21.7 | ) | (118,548 | ) | (13.1 | ) | (102,319 | ) | (21.7 | ) | (116,415 | ) | (18,268 | ) | (32.6 | ) | ||||||||||||||||||||||||||||
General and administrative expenses | (71,641 | ) | (10.0 | ) | (109,291 | ) | (12.1 | ) | (119,087 | ) | (18,251 | ) | (25.3 | ) | (109,291 | ) | (12.1 | ) | (119,087 | ) | (25.3 | ) | (79,922 | ) | (12,542 | ) | (22.4 | ) | ||||||||||||||||||||||||||||
Total operating expenses | (289,852 | ) | (40.6 | ) | (404,087 | ) | (44.6 | ) | (396,003 | ) | (60,690 | ) | (84.0 | ) | (404,087 | ) | (44.6 | ) | (396,003 | ) | (84.0 | ) | (403,059 | ) | (63,249 | ) | (112.8 | ) | ||||||||||||||||||||||||||||
Loss from operations | (92,785 | ) | (13.0 | ) | (147,225 | ) | (16.2 | ) | (189,825 | ) | (29,092 | ) | (40.3 | ) | (147,225 | ) | (16.2 | ) | (189,825 | ) | (40.3 | ) | (138,130 | ) | (21,675 | ) | (38.7 | ) | ||||||||||||||||||||||||||||
Foreign exchange (loss)/gain, net | 264 | 0.0 | 435 | 0.0 | 10 | 2 | 0.0 | 435 | 0.0 | 10 | 0.0 | (3,376 | ) | (530 | ) | (0.9 | ) | |||||||||||||||||||||||||||||||||||||||
Interest income | 3,657 | 0.5 | 6,300 | 0.7 | 6,131 | 940 | 1.3 | 6,300 | 0.7 | 6,131 | 1.3 | 6,597 | 1,035 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | (7,054 | ) | (1.0 | ) | (11,118 | ) | (1.2 | ) | (11,724 | ) | (1,797 | ) | (2.5 | ) | (11,118 | ) | (1.2 | ) | (11,724 | ) | (2.5 | ) | (8,815 | ) | (1,383 | ) | (2.5 | ) | ||||||||||||||||||||||||||||
Other income | 8,449 | 1.2 | 38,812 | 4.3 | (30,814 | ) | (4,722 | ) | (6.5 | ) | 38,812 | 4.3 | (30,814 | ) | (6.5 | ) | (2,908 | ) | (456 | ) | (0.8 | ) | ||||||||||||||||||||||||||||||||||
Change in fair value of derivative asset | — | — | 3,117 | 0.3 | 1,233 | 189 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative liability | 21,302 | 3.0 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of structured notes | 3,117 | 0.3 | 1,233 | 0.3 | 20 | 3 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of foreign currency swap contract | — | — | — | — | 6,060 | 951 | 1.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Loss before income taxes | (66,167 | ) | (9.0 | ) | (109,679 | ) | (12.1 | ) | (224,989 | ) | (34,480 | ) | (47.7 | ) | (109,679 | ) | (12.1 | ) | (224,989 | ) | (47.7 | ) | (140,552 | ) | (22,055 | ) | (39.3 | ) | ||||||||||||||||||||||||||||
Income tax benefit/(expense) | (30 | ) | (0.0 | ) | (162 | ) | (0.0 | ) | (86 | ) | (13 | ) | 0.0 | (162 | ) | (0.0 | ) | (86 | ) | 0.0 | (32 | ) | (5 | ) | (0.0 | ) | ||||||||||||||||||||||||||||||
Net loss | (66,197 | ) | (9.3 | ) | (109,841 | ) | (12.1 | ) | (225,075 | ) | (34,493 | ) | (47.7 | ) | (109,841 | ) | (12.1 | ) | (225,075 | ) | (47.7 | ) | (140,584 | ) | (22,060 | ) | (39.3 | ) | ||||||||||||||||||||||||||||
(1) | Share-based compensation expenses are allocated in cost of revenues and operating expenses items as follows: |
For the Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Cost of revenue | — | 73 | 4 | 1 | 73 | 4 | 41 | 6 | ||||||||||||||||||||||||
Research and development expenses | 9,448 | 12,819 | 7,176 | 1,100 | 12,819 | 7,176 | 13,801 | 2,166 | ||||||||||||||||||||||||
Sales and marketing expenses | 3,347 | 6,040 | 3,965 | 608 | 6,040 | 3,965 | 2,609 | 409 | ||||||||||||||||||||||||
General and administrative expenses | 11,766 | 28,352 | 17,713 | 2,715 | 28,352 | 17,713 | 13,761 | 2,160 | ||||||||||||||||||||||||
Total | 24,561 | 47,284 | 28,858 | 4,424 | 47,284 | 28,858 | 30,212 | 4,741 | ||||||||||||||||||||||||
Grant Date | Number of Restricted Share Units Granted | Weighted- Average Grant- date Fair Value per Restricted Share Unit | Number of Restricted Share Units Granted | Weighted-Average Grant-date Fair Value per Restricted Share Unit | ||||||||||||
US$ | US$ | |||||||||||||||
Various dates in 2018 | 12,550 | 7.97 | ||||||||||||||
Various dates in 2019 | 33,643 | 6.48 | 33,643 | 6.48 | ||||||||||||
Various dates in 2020 | 95,095 | 3.13 | 95,095 | 3.13 | ||||||||||||
Various dates in 2021 | 119,568 | 2.18 |
Grant Date | Number of Options Granted | Weighted- Average Per Option Exercise Price | Weighted- Average Grant- date Fair Value per Option | Number of Options Granted | Weighted- Average Per Option Exercise Price | Weighted- Average Grant- date Fair Value per Option | ||||||||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||||||||
Various dates in 2018 | 1,736,390 | 3.89 | 6.66 | |||||||||||||||||||||
Various dates in 2019 | 333,077 | 1.29 | 7.21 | 333,077 | 1.29 | 7.21 | ||||||||||||||||||
Various dates in 2020 | 1,578,809 | 0.04 | 2.91 | 1,578,809 | 0.04 | 2.91 | ||||||||||||||||||
Various dates in 2021 | 1,367,791 | 1.14 | 3.86 |
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
Risk-free interest rate (1) | 2.27% ~ 2.93% | 1.65% ~ 2.54% | 0.63 ~ 1.88% | 1.65% ~ 2.54% | 0.63% ~ 1.88% | 0.94% - 1.70% | ||||||||||||||||||
Expected dividend yield (2) | — | — | — | — | — | — | ||||||||||||||||||
Expected volatility range (3) | 45.30% ~ 46.10% | 44.23% ~ 44.71% | 44.37% ~ 47.83% | 44.23% ~ 44.71% | 44.37% ~ 47.83% | 47.45% - 56.62% | ||||||||||||||||||
Weighted average expected volatility | 45.98 | % | 44.53 | % | 46.37 | % | 44.53% | 46.37% | 50.26% | |||||||||||||||
Expected exercise multiple (4) | 2.5 | 2.5 | 2.5 ~ 2.8 | 2.5 | 2.5 ~ 2.8 | 2.2 ~ 2.8 |
(1) | The risk-free interest rate of periods within the contractual life of the share options was estimated based on the U.S. Treasury yield in effect as of the valuation dates. |
(2) | The expected dividend yield is zero as we have never declared or paid any cash dividends on our shares, and we do not anticipate any dividend payments in the foreseeable future. |
(3) | The expected volatility was estimated based on the average of historical volatilities of the common shares of comparable publicly-traded companies in the same industry as of the valuation dates. |
(4) | Expected exercise multiple is estimated based on changes in intrinsic value of the option and likelihood of early exercises by employees. |
B. | Liquidity and Capital Resources |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
For the Year Ended December 31, | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
2018 | 2019 | 2020 | RMB | RMB | RMB | US$ | ||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||||
Selected Consolidated Cash Flow Data: | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||
Net cash used in operating activities | (97,925 | ) | (25,758 | ) | 75,810 | 11,619 | ||||||||||||||||||||||||||
Net cash used in investing activities | (139,206 | ) | (88,966 | ) | (144,415 | ) | (22,133 | ) | ||||||||||||||||||||||||
Net cash provided by financing activities | 614,884 | (33,883 | ) | 315 | 48 | |||||||||||||||||||||||||||
Net cash (used in)/provided by operating activities | (25,758 | ) | 75,810 | (76,650 | ) | (12,027 | ) | |||||||||||||||||||||||||
Net cash (used in)/provided by investing activities | (88,966 | ) | (144,415 | ) | 26,442 | 4,150 | ||||||||||||||||||||||||||
Net cash (used in)/provided by financing activities | (33,883 | ) | 315 | (54,520 | ) | (8,556 | ) | |||||||||||||||||||||||||
Effect of exchange rate on cash and cash equivalents and restricted cash | (9,352 | ) | 3,504 | (7,054 | ) | (1,081 | ) | 3,504 | (7,054 | ) | 3,080 | 483 | ||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 368,401 | (145,103 | ) | (75,344 | ) | (11,547 | ) | |||||||||||||||||||||||||
Net decrease in cash and cash equivalents and restricted cash | (145,103 | ) | (75,344 | ) | (101,648 | ) | (15,950 | ) | ||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at the beginning of year or period | 208,276 | 576,677 | 431,574 | 66,142 | 576,677 | 431,574 | 356,230 | 55,900 | ||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at the end of the year or period | 576,677 | 431,574 | 356,230 | 54,595 | 431,574 | 356,230 | 254,582 | 39,950 |
C. | Research and Development, Patents and Licenses, Etc. |
D. | Trend Information |
E. |
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||||
(in thousands of RMB) | ||||||||||||||||||||
Operating lease | 24,072 | 8,821 | 13,124 | 2,127 | — | |||||||||||||||
Short-term debt obligation | 228,372 | 228,372 | — | — | — | |||||||||||||||
Total | 252,444 | 237,193 | 13,124 | 2,172 | — |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. | Directors and Senior Management |
Directors and Executive Officers | Age | Position/Title | ||
Weidong Luo | Chairman of the Board of Directors and Chief Executive Officer | |||
Deputy Chief Technology Officer | ||||
Shan-Nen Bong | Chief Financial Officer | |||
Guoxiao Ben | Chief Human Resource Officer | |||
Kwok Hin Tang | Director | |||
Hon Sang Lee | Independent Director | |||
John Tiong Lu Koh | Independent Director | |||
Peter Si Ngai Yeung | Independent Director |
B. | Compensation of Directors and Executive Officers |
Name | Common Shares Underlying Options and | Exercise Price (US$/Share) | Date of Grant | Date of Expiration | |||||||||||||
Qing Zhang | — | ||||||||||||||||
Shan-Nen Bong | * | 0.00 to 2.876 | | November 13, 2017 and April 1, 2019 | | | November 13, 2027 and April 1, 2029 | | |||||||||
Guoxiao Ben | * | — | January 8, 2020 | January 8, 2030 | |||||||||||||
Kwok Hin Tang | * | (1) | — | | Between April 1, 2019 and April 1, | | | Between April 1, 2029 and April 1, | | ||||||||
John Tiong Lu Koh | * | (1) | — | | Between September 4, 2018 and December 28, 2021 | | | Between September 4, 2028 and December 28, 2031 | | ||||||||
Peter Si Ngai Yeung | * | (1) | — | | Between September 4, 2018 and December 28, 2021 | | | Between September 4, 2028 and December 28, 2031 | | ||||||||
Hon Sang Lee | * | (1) | — | | Between May 7, 2020 and May 7, | | | Between May 7, and May 7, 2031 | | ||||||||
All directors and executive officers as a group |
* | Aggregate number of shares represented by all grants of options and restricted share units to the person accounts for less than 1% of our total outstanding common shares as of the date of February 28, |
(1) | Represents restricted share units. |
C. | Board Practices |
Board Diversity Matrix (As of February 28, 2022) | ||||
Country of Principal Executive Offices | PRC | |||
Foreign Private Issuer | Yes | |||
Disclosure Prohibited Under Home Country Law | No | |||
Total Number of Directors | 5 |
Female | Male | Non-Binary | Did Not Disclose Gender | |||||||||||||
Part I: Gender Identity | ||||||||||||||||
Directors | 0 | 5 | 0 | 0 | ||||||||||||
Part II: Demographic Background | ||||||||||||||||
Underrepresented Individual in Home Country Jurisdiction | 0 | |||||||||||||||
LGBTQ+ | 0 | |||||||||||||||
Did Not Disclose Demographic Background | 0 |
Function: | Number | |||
Research and Development | ||||
Sales and Marketing | ||||
General and Administrative | ||||
Cost of Revenue | ||||
Total | ||||
E. | Share Ownership |
Common Shares Beneficially Owned | ||||||||||||||||||||
Class A common shares | Class A common shares | Total common shares | Percentage of total common shares | Percentage of aggregate voting power† | ||||||||||||||||
Directors and Executive Officers:** | ||||||||||||||||||||
Weidong Luo (1) | 7,171,333 | 17,000,189 | 24,171,522 | 30.7 | % | 76.5 | % | |||||||||||||
Fei Chen (2) | 5,002,056 | — | 5,002,056 | 6.4 | % | 2.2 | % | |||||||||||||
Xin Huang (3) | * | — | * | * | * | |||||||||||||||
Shan-Nen Bong (4) | * | — | * | * | * | |||||||||||||||
Guoxiao Ben (5) | — | — | — | — | — | |||||||||||||||
Kwok Hin Tang (6) | — | — | — | — | — | |||||||||||||||
Hon Sang Lee | — | — | — | — | — | |||||||||||||||
John Tiong Lu Koh (7) | — | — | — | — | — | |||||||||||||||
Peter Si Ngai Yeung (8) | * | — | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group | 13,249,397 | 17,000,189 | 30,249,586 | 38.5 | % | 79.1 | % | |||||||||||||
Principal Shareholders: | ||||||||||||||||||||
KK Mobile Limited (9) | 7,100,000 | 17,000,189 | 24,100,189 | 30.7 | % | 76.5 | % | |||||||||||||
Mandra iBase Limited (10) | 15,014,948 | — | 15,014,948 | 19.1 | % | 6.5 | % | |||||||||||||
Entities affiliated with IDG-Accel (11) | 4,970,972 | — | 4,970,972 | 6.3 | % | 2.1 | % | |||||||||||||
Fosun International Limited (12) | 6,585,300 | — | 6,585,300 | 8.4 | % | 2.8 | % | |||||||||||||
FIL Limited and its affiliated entities (13 ) | 5,332,524 | — | 5,332,524 | 6.8 | % | 2.3 | % |
Common Shares Beneficially Owned | ||||||||||||||||||||
Class A common shares | Class B common shares | Total common shares | Percentage of total common shares | Percentage of aggregate voting power † | ||||||||||||||||
Directors and Executive Officers:** | ||||||||||||||||||||
Weidong Luo (1) | 7,171,333 | 17,000,189 | 24,171,522 | 30.6 | % | 76.4 | % | |||||||||||||
Qing Zhang (2) | * | — | * | * | * | |||||||||||||||
Shan-Nen Bong(3) | * | — | * | * | * | |||||||||||||||
Guoxiao Ben (4) | * | — | * | * | * | |||||||||||||||
Kwok Hin Tang (5) | * | — | * | * | * | |||||||||||||||
Hon Sang Lee | — | — | — | — | — | |||||||||||||||
John Tiong Lu Koh (6) | * | — | * | * | * | |||||||||||||||
Peter Si Ngai Yeung (7) | * | — | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group | 7,696,780 | 17,000,189 | 24,696,969 | 31.2 | % | 76.6 | % | |||||||||||||
Principal Shareholders: | ||||||||||||||||||||
KK Mobile Limited (8) | 7,100,000 | 17,000,189 | 24,100,189 | 30.5 | % | 76.3 | % | |||||||||||||
Mandra iBase Limited (9) | 14,109,001 | — | 14,109,001 | 17.9 | % | 6.1 | % | |||||||||||||
Fei Chen (10) | 5,002,056 | — | 5,002,056 | 6.3 | % | 2.2 | % | |||||||||||||
Entities affiliated with IDG-Accel (11) | 4,672,006 | — | 4,672,006 | 5.9 | % | 2.0 | % | |||||||||||||
Fosun International Limited (12) | 6,020,218 | — | 6,020,218 | 7.6 | % | 2.6 | % | |||||||||||||
FIL Limited and its affiliated entities (13) | 4,394,283 | — | 4,394,283 | 5.6 | % | 1.9 | % |
† | For each person or group included in this column, percentage of total voting power represents voting power based on both Class A and Class B common shares held by such person or group with respect to all outstanding shares of our Class A and Class B common shares as a single class. Each holder of our Class A common shares is entitled to one vote per share. Each holder of our Class B common shares is entitled to ten votes per share. Our Class B common shares are convertible at any time by the holder into Class A common shares on a one-for-one |
* | Aggregate number of shares accounts for less than 1% of our total outstanding common shares and aggregate voting power. |
** | The business address of Messrs. Weidong Luo, Shan-Nen Bong, Guoxiao Ben and Hon Sang Lee is 14/F, China Certification and Inspection Building, No. 8 Keji South 12th Road, Nanshan District, Shenzhen, Guangdong 518057, People’s Republic of China. Mr. Kwok Hin Tang’s business address is 10/F, Fung House,19-20 Connaught Road Central, Hong Kong. Mr. John Tiong Lu Koh’s business address is 279 River Valley Road,#05-01, Singapore 238320. Mr. Peter Si Ngai Yeung’s business address is 5A Block 3, The Morning Glory, 1 Lok Ha Square, Shatin, Hong Kong. |
(1) | Represents (i) 7,100,000 Class A common shares and 17,000,189 Class B common shares held by KK Mobile Limited, a British Virgin Islands company, and (ii) 107,000 ADSs, representing 71,333 Class A common shares, owned by Mr. Weidong Luo. KK Mobile Limited is wholly owned by Mr. Weidong Luo. The registered address of KK Mobile Limited is Unit 8, 3/F., Qwomar Trading Complex, Blacburne Road, Port Purcell, Road Town, Tortola, British Virgin Islands. |
(2) | Represents |
(3) | Represents the Class A common shares |
Represents the Class A common shares Mr. Guoxiao Ben has the right to acquire upon exercise of share options within 60 days after February 28, |
Represents the Class A common shares held by and the Class A common shares Mr. Kwok Hin Tang has the right to acquire upon exercise of share options within 60 days after February 28, |
Represents the Class A common shares held by Mr. John Tiong Lu Koh. |
Represents the Class A common shares held by Mr. Peter Si Ngai Yeung. |
Represents 7,100,000 Class A common shares and 17,000,189 Class B common shares held by KK Mobile Limited. |
Represents |
Represents |
(11) | Represents (i) 4,362,710 Class A common shares held by IDG-Accel China Growth Fund III L.P., a Cayman Islands limited partnership, and (ii) IDG-Accel China III Investors L.P., a Cayman Islands limited IDG-Accel China Growth Fund III L.P. and affiliated parties on February 25, 2022. The general partner ofIDG-Accel China Growth Fund III L.P. isIDG-Accel China Growth Fund III Associates L.P., and the general partner ofIDG-Accel China Growth Fund III Associates L.P. isIDG-Accel China Growth Fund GP III Associates Ltd. The general partner ofIDG-Accel China III Investors L.P. isIDG-Accel China Growth Fund GP III Associates Ltd.IDG-Accel China Growth Fund GP III Associates Ltd. is 50% owned by Mr. Chi Sing Ho, its largest shareholder, and the current members of its board of directors are Mr. Quan Zhou and Mr. Chi Sing Ho. The IDG-Accel China Growth Fund III L.P. andIDG-Accel China III Investors L.P. is |
(12) | Represents |
(13) | Represents |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. | Major Shareholders |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
FINANCIAL INFORMATION |
A. | Consolidated Statements and Other Financial Information |
B. | Significant Changes |
THE OFFER AND LISTING |
A. | Offering and Listing Details |
B. | Plan of Distribution |
C. | Markets |
128 D. Selling Shareholders Not applicable. E. Dilution Not applicable. F. Expenses of the Issue |
ADDITIONAL INFORMATION |
A. | Share Capital |
B. | Memorandum and Articles of Association |
C. | Material Contracts |
132 D. | Exchange Controls |
E. | Taxation |
138 THE PRECEDING SUMMARY OF U.S. FEDERAL INCOME TAX CONSIDERATIONS IS INTENDED FOR GENERAL INFORMATION ONLY AND DOES NOT CONSTITUTE TAX ADVICE. U.S. HOLDERS SHOULD CONSULT THEIR TAX ADVISORS AS TO THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. TAX CONSIDERATIONS GENERALLY APPLICABLE TO THE OWNERSHIP AND DISPOSITION OF OUR ADSs AND CLASS A COMMON SHARES IN LIGHT OF THEIR PARTICULAR CIRCUMSTANCES.F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. | Debt Securities |
B. | Warrants and Rights |
C. | Other Securities |
Persons depositing or withdrawing Class A common shares or ADS holders must pay: | For: | |
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | • Issuance of ADSs, including issuances resulting from a distribution of Class A common shares or rights or other property | |
• Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates | ||
$0.05 (or less) per ADS | • Any cash distribution to ADS holders | |
A fee equivalent to the fee that would be payable if securities distributed to the ADS holders had been Class A common shares and the Class A common shares had been deposited for issuance of ADSs | • Distribution of securities distributed to holders of deposited securities (including rights) that are distributed by the depositary to ADS holders | |
$0.05 (or less) per ADS per calendar year | • Depositary services | |
Registration or transfer fees | • Transfer and registration of Class A common shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw Class A common shares | |
Expenses of the depositary | • Cable and facsimile transmissions (when expressly provided in the deposit agreement) | |
• Converting foreign currency to U.S. dollars | ||
Taxes and other governmental charges the depositary or the custodian has to pay on any ADSs or Class A common shares underlying ADSs, such as stock transfer taxes, stamp duty or withholding taxes | • As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities | • As necessary |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
CONTROLS AND PROCEDURES |
AUDIT COMMITTEE FINANCIAL EXPERT |
CODE OF ETHICS |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
(in thousands of RMB) | (in thousands of RMB) | |||||||||||||||
Audit fees (1) | 7,728 | 7,228 | 7,228 | 8,328 | ||||||||||||
Tax fees (2) | 316 | 371 | 371 | 260 |
(1) | “Audit fees” means the aggregate fees billed for professional services rendered by our principal auditors for the audit of our annual financial statements and the review of our comparative interim financial statements. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
CORPORATE GOVERNANCE |
MINE SAFETY DISCLOSURE |
Item 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
FINANCIAL STATEMENTS |
FINANCIAL STATEMENTS |
EXHIBITS |
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. |
By: | /s/ Weidong Luo | |||||||
Name: | Weidong Luo | |||||||
Title: | Chairman of the Board of Directors and Chief Executive Officer |
Page(s) | ||||
F-2 | ||||
F-3 | ||||
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||
Note | 2019 | 2020 | Note | 2020 | 2021 | |||||||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 431,459 | 356,115 | 54,577 | 356,115 | 90,552 | 14,210 | ||||||||||||||||||||||||
Restricted cash | 115 | 115 | 18 | 115 | 164,030 | 25,740 | ||||||||||||||||||||||||
Derivative assets | — | 100 | 15 | 100 | 5,989 | 940 | ||||||||||||||||||||||||
Short-term investments | 18 | — | 80,000 | 12,261 | 19 | 80,000 | 30,000 | 4,708 | ||||||||||||||||||||||
Accounts and notes receivable, net of allowances of RMB28,516 and RMB43,820 (US$6,716) as of December 31, 2019 and 2020, respectively | 3 | 135,417 | 44,886 | 6,879 | ||||||||||||||||||||||||||
Accounts and notes receivable, net of allowances of RMB43,820 and RMB37,690 (US$5,914) as of December 31, 2020 and 2021, respectively | 3 | 44,886 | 43,860 | 6,883 | ||||||||||||||||||||||||||
Prepayments and other current assets | 4 | 86,087 | 49,013 | 7,511 | 4 | 49,013 | 46,670 | 7,323 | ||||||||||||||||||||||
Amounts due from related parties | 15 | 521 | — | — | 16 | — | 35 | 5 | ||||||||||||||||||||||
Total current assets | 653,599 | 530,229 | 81,261 | 530,229 | 381,136 | 59,809 | ||||||||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||||||||
Property and equipment, net | 5 | 106,235 | 73,522 | 11,268 | 5 | 73,522 | 62,179 | 9,757 | ||||||||||||||||||||||
Intangible assets, net | 6 | 8,810 | 9,519 | 1,459 | 6 | 9,519 | 5,398 | 847 | ||||||||||||||||||||||
Long-term investments | 7 | 168,637 | 168,526 | 25,828 | 7 | 168,526 | 141,926 | 22,271 | ||||||||||||||||||||||
Other non-current assets | 2,642 | 5,631 | 863 | 5,631 | 4,898 | 769 | ||||||||||||||||||||||||
Total non-current assets | 286,324 | 257,198 | 39,418 | 257,198 | 214,401 | 33,644 | ||||||||||||||||||||||||
Total assets | 939,923 | 787,427 | 120,679 | 787,427 | 595,537 | 93,453 | ||||||||||||||||||||||||
As of December 31, | ||||||||||||||||
Note | 2019 | 2020 | ||||||||||||||
RMB | RMB | US$ | ||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable (including accounts payable of the variable interest entity (“VIE”) without recourse to the Company of RMB19,974 and RMB16,564 (US$2,539) as of December 31, 2019 and 2020, respectively) | 19,996 | 16,592 | 2,543 | |||||||||||||
Deferred revenue and customer deposits (including deferred revenue and customer deposits of the VIE without recourse to the Company of RMB73,820 and RMB104,681(US$16,043) as of December 31, 2019 and 2020, respectively) | 8 | 77,561 | 109,182 | 16,733 | ||||||||||||
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the VIE without recourse to the Company of RMB72,580 and RMB66,772(US$10,233) as of December 31, 2019 and 2020, respectively) | 9 | 96,277 | 109,136 | 16,725 | ||||||||||||
Amounts due to related parties (including amount due to related parties of the VIE without recourse to the Company of RMB56 and NaN as of December 31, 2019 and 2020, respectively) | 15 | 56 | — | — | ||||||||||||
Convertible notes | 12 | — | 225,229 | 34,518 | ||||||||||||
Total current liabilities | 193,890 | 460,139 | 70,519 | |||||||||||||
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||
Note | 2019 | 2020 | Note | 2020 | 2021 | |||||||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||
Short-term loan | 8 | — | 150,000 | 23,538 | ||||||||||||||||||||||||||
Accounts payable (including accounts payable of the variable interest entity (“VIE”) without recourse to the Company of RMB16,564 and RMB17,529 (US$2,751) as of December 31, 2020 and 2021, respectively) | 16,592 | 18,292 | 2,870 | |||||||||||||||||||||||||||
Deferred revenue and customer deposits (including deferred revenue and customer deposits of the VIE without recourse to the Company of RMB104,681 and RMB115,900 | 9 | 109,182 | 119,991 | 18,829 | ||||||||||||||||||||||||||
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the VIE without recourse to the Company of RMB66,772 and RMB64,527 (US$10,126) as of December 31, 2020 and 2021, respectively) | 10 | 109,136 | 85,305 | 13,388 | ||||||||||||||||||||||||||
Amounts due to related parties (including amount due to related parties of the VIE without recourse to the Company of 0nil and RMB54 (US$8) as of December 31, 2020 and 2021, respectively) | 16 | — | 54 | 8 | ||||||||||||||||||||||||||
Convertible notes | 13 | 225,229 | — | — | ||||||||||||||||||||||||||
Total current liabilities | 460,139 | 373,642 | 58,633 | |||||||||||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||||||||||||
Other non-current liabilities (including othernon-current liabilities of the VIE without recourse to the Company of RMB64 and NaN as of December 31, 2019 and 2020, respectively) | 64 | — | — | |||||||||||||||||||||||||||
Deferred revenue | 8 | 8,150 | 6,049 | 927 | ||||||||||||||||||||||||||
Convertible notes | 12 | 230,031 | — | — | ||||||||||||||||||||||||||
Other non-current liabilities (including othernon-current liabilities of the VIE without recourse to the Company of 0nil and RMB560 (US$88) as of December 31, 2020 and 2021, respectively) | — | 2,607 | 409 | |||||||||||||||||||||||||||
Deferred revenue (including non-current deferred revenue of the VIE without recourse to the Company of RMB561 and RMB569 (US$89) as of December 31, 2020 and 2021, respectively) | 9 | 6,049 | 3,845 | 603 | ||||||||||||||||||||||||||
Total non-current liabilities | 238,245 | 6,049 | 927 | 6,049 | 6,452 | 1,012 | ||||||||||||||||||||||||
Total liabilities | 432,135 | 466,188 | 71,446 | 466,188 | 380,094 | 59,645 | ||||||||||||||||||||||||
Commitments and contingencies | 14 | 0 | ||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||
Class A common shares (par value of US$0.0001 per share as of December 31, 2020 and 2021; 4,920,000,000 shares authorized as of December 31, 2020 and 2021, 61,392,170 shares and 62,036,273 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 15 | 37 | 38 | 6 | ||||||||||||||||||||||||||
Class B common shares (par value of US$0.0001 per share as of December 31, 2020 and 2021; 30,000,000 shares authorized as of December 31, 2020 and 2021, 17,000,189 shares and 17,000,189 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 15 | 11 | 11 | 2 | ||||||||||||||||||||||||||
Additional paid-in capital | 988,812 | 1,021,961 | 160,368 | |||||||||||||||||||||||||||
Accumulated deficit | (678,434 | ) | (819,018 | ) | (128,522 | ) | ||||||||||||||||||||||||
Accumulated other comprehensive income | 10,813 | 12,451 | 1,954 | |||||||||||||||||||||||||||
Total shareholders’ equity | 321,239 | 215,443 | 33,808 | |||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | 787,427 | 595,537 | 93,453 | |||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||
Note | 2019 | 2020 | ||||||||||||||
RMB | RMB | US$ | ||||||||||||||
Commitments and contingencies | 13 | 0 | 0 | 0 | ||||||||||||
Shareholders’ equity | ||||||||||||||||
Class A common shares (par value of US$0.0001 per share as of December 31, 2019 and 2020; 4,920,000,000 shares authorized as of December 31, 2019 and 2020, 60,106,037 shares and 61,392,170 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 14 | 37 | 37 | 6 | ||||||||||||
Class B common shares (par value of US$0.0001 per share as of December 31, 2019 and 2020 ; 30,000,000 shares authorized as of December 31, 2019 and 2020, 17,000,189 shares and 17,000,189 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 14 | 11 | 11 | 1 | ||||||||||||
Treasury shares (81,930 and 0 class A common shares as of December 31, 2019 and 2020, respectively) | 14 | (1,999 | ) | — | — | |||||||||||
Additional paid-in capital | 956,735 | 988,812 | 151,542 | |||||||||||||
Accumulated deficit | (453,359 | ) | (678,434 | ) | (103,975 | ) | ||||||||||
Accumulated other comprehensive income | 6,363 | 10,813 | 1,659 | |||||||||||||
Total shareholders’ equity | 507,788 | 321,239 | 49,233 | |||||||||||||
Total liabilities and shareholders’ equity | 939,923 | 787,427 | 120,679 | |||||||||||||
Year ended December 31, | ||||||||||||||||||||
Note | 2019 | 2020 | 2021 | |||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Revenues | 17 | 906,458 | 471,614 | 357,322 | 56,072 | |||||||||||||||
Cost of revenues | (649,596 | ) | (265,436 | ) | (92,393 | ) | (14,498 | ) | ||||||||||||
Gross profit | �� | 256,862 | 206,178 | 264,929 | 41,574 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | (176,248 | ) | (174,597 | ) | (206,722 | ) | (32,439 | ) | ||||||||||||
Sales and marketing | (118,548 | ) | (102,319 | ) | (116,415 | ) | (18,268 | ) | ||||||||||||
General and administrative | (109,291 | ) | (119,087 | ) | (79,922 | ) | (12,542 | ) | ||||||||||||
Total operating expenses | (404,087 | ) | (396,003 | ) | (403,059 | ) | (63,249 | ) | ||||||||||||
Loss from operations | (147,225 | ) | (189,825 | ) | (138,130 | ) | (21,675 | ) | ||||||||||||
Foreign exchange gain / (loss) | 435 | 10 | (3,376 | ) | (530 | ) | ||||||||||||||
Interest income | 6,300 | 6,131 | 6,597 | 1,035 | ||||||||||||||||
Interest expense | (11,118 | ) | (11,724 | ) | (8,815 | ) | (1,383 | ) | ||||||||||||
Other income / (expenses) | 18 | 38,812 | (30,814 | ) | (2,908 | ) | (456 | ) | ||||||||||||
Change in fair value of structured deposits | 3,117 | 1,233 | 20 | 3 | ||||||||||||||||
Change in fair value of foreign currency swap contract | — | — | 6,060 | 951 | ||||||||||||||||
Loss before income taxes | (109,679 | ) | (224,989 | ) | (140,552 | ) | (22,055 | ) | ||||||||||||
Income tax expense | 12 | (162 | ) | (86 | ) | (32 | ) | (5 | ) | |||||||||||
Net loss | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||||||
Net loss attributable to common/ordinary shareholders | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||||||
Net loss per share for class A and class B common shares: | 15 | |||||||||||||||||||
Class A common shares - basic and diluted | (1.43 | ) | (2.91 | ) | (1.78 | ) | (0.28 | ) | ||||||||||||
Class B common shares - basic and diluted | (1.43 | ) | (2.91 | ) | (1.78 | ) | (0.28 | ) | ||||||||||||
Shares used in net loss per share computation: | ||||||||||||||||||||
Class A common shares - basic and diluted | 59,721,341 | 60,415,978 | 61,809,501 | 61,809,501 | ||||||||||||||||
Class B common shares - basic and diluted | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | ||||||||||||||||
Other comprehensive (loss)/income | ||||||||||||||||||||
Foreign currency translation adjustments | (2,037 | ) | 4,450 | 1,638 | 257 | |||||||||||||||
Total other comprehensive (loss)/income, net of tax | (2,037 | ) | 4,450 | 1,638 | 257 | |||||||||||||||
Total comprehensive loss | (111,878 | ) | (220,625 | ) | (138,946 | ) | (21,803 | ) | ||||||||||||
Comprehensive loss attributable to Aurora Mobile Limited | (111,878 | ) | (220,625 | ) | (138,946 | ) | (21,803 | ) | ||||||||||||
Common shares | Treasury shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total shareholders’ equity | |||||||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||
Balance as of January 1, 2019 | 76,548,012 | 48 | (3,165 | ) | 944,500 | 8,400 | (348,123 | ) | 601,660 | |||||||||||||||||||
Net loss | — | — | — | — | — | (109,841 | ) | (109,841 | ) | |||||||||||||||||||
Cumulative effect of adoption of ASC 606 | — | — | — | — | — | 4,605 | 4,605 | |||||||||||||||||||||
Translation adjustments | — | — | — | — | (2,037 | ) | — | (2,037 | ) | |||||||||||||||||||
Exercise and vesting of share-based awards | 1,125,648 | — | 38,725 | (35,049 | ) | — | — | 3,676 | ||||||||||||||||||||
Repurchased shares | (567,434 | ) | — | (37,559 | ) | — | — | — | (37,559 | ) | ||||||||||||||||||
Share-based compensation (Note 11) | — | — | — | 47,284 | — | — | 47,284 | |||||||||||||||||||||
Balance as of December 31, 2019 | 77,106,226 | 48 | (1,999 | ) | 956,735 | 6,363 | (453,359 | ) | 507,788 | |||||||||||||||||||
Common shares | Treasury shares | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit | Total shareholders’ equity | |||||||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||
Balance as of January 1, 2020 | 77,106,226 | 48 | (1,999 | ) | 956,735 | 6,363 | (453,359 | ) | 507,788 | |||||||||||||||||||
Net loss | — | — | — | — | — | (225,075 | ) | (225,075 | ) | |||||||||||||||||||
Translation adjustments | — | — | — | — | 4,450 | — | 4,450 | |||||||||||||||||||||
Exercise and vesting of share-based awards | 1,286,133 | — | 1,999 | 3,219 | — | — | 5,218 | |||||||||||||||||||||
Share-based compensation (Note 11) | — | — | — | 28,858 | — | — | 28,858 | |||||||||||||||||||||
Balance as of December 31, 2020 | 78,392,359 | 48 | 0 | 988,812 | 10,813 | (678,434 | ) | 321,239 | ||||||||||||||||||||
Common shares | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit | Total shareholders’ equity | ||||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||
Balance as of January 1, 2021 | 78,392,359 | 48 | 988,812 | 10,813 | (678,434 | ) | 321,239 | |||||||||||||||||
Net loss | — | — | — | — | (140,584 | ) | (140,584 | ) | ||||||||||||||||
Translation adjustments | — | — | — | 1,638 | — | 1,638 | ||||||||||||||||||
Exercise and vesting of share-based awards | 644,103 | 1 | 2,937 | — | — | 2,938 | ||||||||||||||||||
Share-based compensation (Note 11) | — | — | 30,212 | — | — | 30,212 | ||||||||||||||||||
Balance as of December 31, 2021 | 79,036,462 | 49 | 1,021,961 | 12,451 | (819,018 | ) | 215,443 | |||||||||||||||||
Balance as of December 31, 2021 in US$ | 8 | 160,368 | 1,954 | (128,522 | ) | 33,808 | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
Note | 2018 | 2019 | 2020 | |||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Revenues | 16 | 714,141 | 906,458 | 471,614 | 72,278 | |||||||||||||||
Cost of revenues nil for the years ended December 31, 2018, 2019 and 2020, respectively) | (517,074 | ) | (649,596 | ) | (265,436 | ) | (40,680 | ) | ||||||||||||
Gross profit | 197,067 | 256,862 | 206,178 | 31,598 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Research and development (including related party amounts of RMB200, NaN and NaN for the years ended December 31, 2018, 2019 and 2020, respectively) | (134,358 | ) | (176,248 | ) | (174,597 | ) | (26,758 | ) | ||||||||||||
Sales and marketing (including related party amounts of RMB718, NaN and NaN for the years ended December 31, 2018, 2019 and 2020, respectively) | (83,853 | ) | (118,548 | ) | (102,319 | ) | (15,681 | ) | ||||||||||||
General and administrative (including related party amounts of RMB59, NaN and NaN for the years ended December 31, 2018, 2019 and 2020, respectively) | (71,641 | ) | (109,291 | ) | (119,087 | ) | (18,251 | ) | ||||||||||||
Total operating expenses | (289,852 | ) | (404,087 | ) | (396,003 | ) | (60,690 | ) | ||||||||||||
Loss from operations | (92,785 | ) | (147,225 | ) | (189,825 | ) | (29,092 | ) | ||||||||||||
Foreign exchange gain | 264 | 435 | 10 | 2 | ||||||||||||||||
Interest income | 3,657 | 6,300 | 6,131 | 940 | ||||||||||||||||
Interest expense | (7,054 | ) | (11,118 | ) | (11,724 | ) | (1,797 | ) | ||||||||||||
Other income / (expenses) | 17 | 8,449 | 38,812 | (30,814 | ) | (4,722 | ) | |||||||||||||
Change in fair value of derivative asset | — | 3,117 | 1,233 | 189 | ||||||||||||||||
Change in fair value of derivative liability | 18 | 21,302 | — | — | — | |||||||||||||||
Loss��before income taxes | (66,167 | ) | (109,679 | ) | (224,989 | ) | (34,480 | ) | ||||||||||||
Income tax expense | 11 | (30 | ) | (162 | ) | (86 | ) | (13 | ) | |||||||||||
Net loss | (66,197 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||||||
Year ended December 31, | ||||||||||||||||||||
Note | 2018 | 2019 | 2020 | |||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Net loss attributable to Aurora Mobile Limited’s shareholders | (66,197 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||||||
Accretion of contingently redeemable convertible preferred shares | (24,094 | ) | — | — | — | |||||||||||||||
Net loss attributable to common/ordinary shareholders | (90,291 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||||||
Net loss per share for class A and class B common shares: | 14 | |||||||||||||||||||
Class A common shares - basic and diluted | (1.57 | ) | (1.43 | ) | (2.91 | ) | (0.45 | ) | ||||||||||||
Class B common shares - basic and diluted | (1.57 | ) | (1.43 | ) | (2.91 | ) | (0.45 | ) | ||||||||||||
Shares used in net loss per share computation: | ||||||||||||||||||||
Class A common shares - basic and diluted | 40,441,999 | 59,721,341 | 60,415,978 | 60,415,978 | ||||||||||||||||
Class B common shares - basic and diluted | 17,000,189 | 17,000,189 | 17,000,189 | 17,000,189 | ||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Foreign currency translation adjustments | 11,688 | (2,037 | ) | 4,450 | 682 | |||||||||||||||
Total other comprehensive income (loss), net of tax | 11,688 | (2,037 | ) | 4,450 | 682 | |||||||||||||||
Total comprehensive loss | (54,509 | ) | (111,878 | ) | (220,625 | ) | (33,811 | ) | ||||||||||||
Comprehensive loss attributable to Aurora Mobile Limited | (54,509 | ) | (111,878 | ) | (220,625 | ) | (33,811 | ) | ||||||||||||
Common shares | Treasury shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total shareholders’ (deficit)/equity | |||||||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||
Balance as of January 1, 2018 | 42,666,670 | 26 | — | 13,689 | (3,289 | ) | (234,810 | ) | (224,384 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (66,197 | ) | (66,197 | ) | |||||||||||||||||||
Translation adjustments | — | — | — | — | 11,689 | — | 11,689 | |||||||||||||||||||||
Issuance of Class A common shares in connection with initial public offering | 6,059,708 | 4 | — | 464,376 | — | — | 464,380 | |||||||||||||||||||||
Conversion of all outstanding contingently redeemable convertible preferred shares to Class A common shares | 27,867,937 | 18 | — | 357,222 | — | 44,451 | 401,691 | |||||||||||||||||||||
Redemption of contingently redeemable convertible preferred shares | — | — | — | — | — | (6,915 | ) | (6,915 | ) | |||||||||||||||||||
Accretion of contingently redeemable convertible preferred shares | — | — | — | 84,652 | — | (84,652 | ) | — | ||||||||||||||||||||
Repurchased shares | (46,303 | ) | (3,165 | ) | — | — | — | (3,165 | ) | |||||||||||||||||||
Share-based compensation (Note 10 ) | — | — | — | 24,561 | — | — | 24,561 | |||||||||||||||||||||
Balance as of December 31, 2018 | 76,548,012 | 48 | (3,165 | ) | 944,500 | 8,400 | (348,123 | ) | 601,660 | |||||||||||||||||||
Common shares | Treasury shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total shareholders’ equity | |||||||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||
Balance as of January 1, 2019 | 76,548,012 | 48 | (3,165 | ) | 944,500 | 8,400 | (348,123 | ) | 601,660 | |||||||||||||||||||
Net loss | — | — | — | — | — | (109,841 | ) | (109,841 | ) | |||||||||||||||||||
Cumulative effect of adoption of ASC 606 (Note 2) | — | — | — | — | — | 4,605 | 4,605 | |||||||||||||||||||||
Translation adjustments | — | — | — | — | (2,037 | ) | — | (2,037 | ) | |||||||||||||||||||
Exercise and vesting of share-based awards | 1,125,648 | — | 38,725 | (35,049 | ) | — | — | 3,676 | ||||||||||||||||||||
Repurchased shares | (567,434 | ) | — | (37,559 | ) | — | — | — | (37,559 | ) | ||||||||||||||||||
Share-based compensation (Note 10) | — | — | — | 47,284 | — | — | 47,284 | |||||||||||||||||||||
Balance as of December 31, 2019 | 77,106,226 | 48 | (1,999 | ) | 956,735 | 6,363 | (453,359 | ) | 507,788 | |||||||||||||||||||
Common shares | Treasury shares | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit | Total shareholders’ equity | |||||||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||
Balance as of January 1, 2020 | 77,106,226 | 48 | (1,999 | ) | 956,735 | 6,363 | (453,359 | ) | 507,788 | |||||||||||||||||||
Net loss | — | — | — | — | — | (225,075 | ) | (225,075 | ) | |||||||||||||||||||
Translation adjustments | — | — | — | — | 4,450 | — | 4,450 | |||||||||||||||||||||
Exercise and vesting of share-based awards | 1,286,133 | 0 | 1,999 | 3,219 | — | — | 5,218 | |||||||||||||||||||||
Share-based compensation (Note 10) | — | — | — | 28,858 | — | — | 28,858 | |||||||||||||||||||||
Balance as of December 31, 2020 | 78,392,359 | 48 | — | 988,812 | 10,813 | (678,434 | ) | 321,239 | ||||||||||||||||||||
Balance as of December 31, 2020 in US$ | 7 | — | 151,542 | 1,659 | (103,975 | ) | 49,233 | |||||||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||
Net loss | (66,197 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||||||||||
Depreciation of property and equipment | 18,084 | 30,059 | 37,704 | 5,778 | 30,059 | 37,704 | 27,337 | 4,290 | ||||||||||||||||||||||||
Amortization of intangible assets | 307 | 2,307 | 4,366 | 669 | 2,307 | 4,366 | 4,481 | 703 | ||||||||||||||||||||||||
Unrealized exchange (gain) loss | 11,689 | (1,731 | ) | (90 | ) | (14 | ) | |||||||||||||||||||||||||
Unrealized exchange gain | (1,731 | ) | (90 | ) | — | — | ||||||||||||||||||||||||||
Allowance for doubtful accounts | 5,846 | 20,054 | 18,732 | 2,871 | 20,054 | 18,732 | (246 | ) | (39 | ) | ||||||||||||||||||||||
Interest expenses, net | — | 8,094 | 7,931 | 1,215 | 8,094 | 7,931 | 2,857 | 448 | ||||||||||||||||||||||||
Impairment of long-term investments | — | — | 38,739 | 5,937 | — | 38,739 | 25,370 | 3,981 | ||||||||||||||||||||||||
Impairment of property and equipment | — | — | 10,952 | 1,678 | — | 10,952 | — | — | ||||||||||||||||||||||||
Impairment of amount due from related companies | — | — | 479 | 73 | — | 479 | — | — | ||||||||||||||||||||||||
Impairment of loans | — | — | 4,500 | 690 | — | 4,500 | 528 | 83 | ||||||||||||||||||||||||
Loss on disposal of property and equipment | — | 15 | 23 | 4 | ||||||||||||||||||||||||||||
Loss/(gain) on disposal of property and equipment | 15 | 23 | (821 | ) | (129 | ) | ||||||||||||||||||||||||||
Gain on an equity investment sold | — | (6,778 | ) | — | — | (6,778 | ) | — | — | — | ||||||||||||||||||||||
Unrealized gain on equity investments held | — | (17,298 | ) | — | — | (17,298 | ) | — | — | — | ||||||||||||||||||||||
Gain on fair value change from derivative assets | — | (3,117 | ) | (1,233 | ) | (189 | ) | |||||||||||||||||||||||||
Change in fair value of structured deposits | (3,117 | ) | (1,233 | ) | (20 | ) | (3 | ) | ||||||||||||||||||||||||
Change in fair value of foreign currency swap contract | — | — | (6,060 | ) | (951 | ) | ||||||||||||||||||||||||||
Share-based compensation expenses | 24,561 | 47,284 | 28,858 | 4,424 | 47,284 | 28,858 | 30,212 | 4,741 | ||||||||||||||||||||||||
Changes in operating assets and liabilities, | ||||||||||||||||||||||||||||||||
Accounts and notes receivable | (98,163 | ) | (25,443 | ) | 71,799 | 11,004 | (25,443 | ) | 71,799 | 1,271 | 199 | |||||||||||||||||||||
Prepayments and other current assets | (46,350 | ) | 1,149 | 43,281 | 6,632 | 1,149 | 43,281 | 13,572 | 2,130 | |||||||||||||||||||||||
Amounts due from related parties | (3,303 | ) | 4,043 | 43 | 7 | 4,043 | 43 | (35 | ) | (5 | ) | |||||||||||||||||||||
Other non-current assets | (1,431 | ) | 702 | 11 | 2 | 702 | 11 | 370 | 58 | |||||||||||||||||||||||
Accounts payable | 10,471 | 1,220 | (3,403 | ) | (522 | ) | 1,220 | (3,403 | ) | 1,699 | 267 | |||||||||||||||||||||
Deferred revenue and customer deposits | 19,861 | 19,027 | 29,520 | 4,524 | 19,027 | 29,520 | 8,605 | 1,350 | ||||||||||||||||||||||||
Tax payable | — | 162 | (115 | ) | (18 | ) | 162 | (115 | ) | (81 | ) | (13 | ) | |||||||||||||||||||
Accrued interest related to convertible notes | — | — | (21,049 | ) | (3,303 | ) | ||||||||||||||||||||||||||
Accrued liabilities and other current liabilities | 24,027 | 13,219 | 8,910 | 1,366 | 13,219 | 8,908 | (25,596 | ) | (4,015 | ) | ||||||||||||||||||||||
Amounts due to related parties | 2,754 | (8,809 | ) | (56 | ) | (9 | ) | (8,809 | ) | (56 | ) | 54 | 8 | |||||||||||||||||||
Change in deferred tax liabilities | (5 | ) | — | — | — | |||||||||||||||||||||||||||
Other non-current liabilities | (76 | ) | (76 | ) | (64 | ) | (10 | ) | (76 | ) | (64 | ) | 1,486 | 233 | ||||||||||||||||||
Net cash (used in)/provided by operating activities | (97,925 | ) | (25,758 | ) | 75,810 | 11,619 | (25,758 | ) | 75,810 | (76,650 | ) | (12,027 | ) | |||||||||||||||||||
Year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of short-term investment | — | (995,000 | ) | (470,169 | ) | (72,057 | ) | |||||||||
Proceeds short-term investment | — | — | 391,964 | 60,071 | ||||||||||||
Proceeds from maturity of structured deposits | — | 1,000,201 | — | — | ||||||||||||
Increase in long-term prepayments | (11,000 | ) | — | — | — | |||||||||||
Purchase of long-term investments | (68,716 | ) | (47,286 | ) | (36,012 | ) | (5,519 | ) | ||||||||
Proceeds from an equity investment sold | — | 10,000 | — | — | ||||||||||||
Investment in loans | — | (8,000 | ) | (1,226 | ) | |||||||||||
Investment in a convertible loan | �� | — | (8,000 | ) | — | — | ||||||||||
Purchase of property and equipment | (57,934 | ) | (39,494 | ) | (19,685 | ) | (3,017 | ) | ||||||||
Proceeds from disposal of property and equipment | — | 199 | 133 | 21 | ||||||||||||
Purchase of intangible assets | (1,556 | ) | (9,586 | ) | (2,646 | ) | (406 | ) | ||||||||
Net cash used in investing activities | (139,206 | ) | (88,966 | ) | (144,415 | ) | (22,133 | ) | ||||||||
Year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of convertible notes, net of issuance cost | 216,179 | — | — | — | ||||||||||||
Proceeds from initial public offering, net of issuance cost | 464,380 | — | — | — | ||||||||||||
Redemption of contingently redeemable convertible preferred shares | (62,510 | ) | — | — | — | |||||||||||
Repurchase of ordinary shares | (3,165 | ) | (37,559 | ) | — | — | ||||||||||
Proceeds from exercise of share options | — | 3,676 | 315 | 48 | ||||||||||||
Net cash provided by/ (used in) financing activities | 614,884 | (33,883 | ) | 315 | 48 | |||||||||||
Effect of exchange rate on cash and cash equivalents and restricted cash | (9,352 | ) | 3,504 | (7,054 | ) | (1,081 | ) | |||||||||
Net increase/ (decrease) in cash and cash equivalents and restricted cash | 368,401 | (145,103 | ) | (75,344 | ) | (11,547 | ) | |||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Net increase/ (decrease) in cash and cash equivalents and restricted cash | 368,401 | (145,103 | ) | (75,344 | ) | (11,547 | ) | |||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||
Purchase of short-term investments | (995,000 | ) | (470,169 | ) | — | — | ||||||||||||||||||||||||||
Proceeds from maturities of short-term investments | — | 391,964 | 50,000 | 7,846 | ||||||||||||||||||||||||||||
Proceeds from maturities of structured deposits | 1,000,201 | — | — | — | ||||||||||||||||||||||||||||
Purchase of long-term investments | (47,286 | ) | (36,012 | ) | — | — | ||||||||||||||||||||||||||
Proceeds from an equity investment sold | 10,000 | — | — | — | ||||||||||||||||||||||||||||
Investment in loans | — | (8,000 | ) | (2,000 | ) | (314 | ) | |||||||||||||||||||||||||
Investment in convertible loans | (8,000 | ) | — | (4,859 | ) | (762 | ) | |||||||||||||||||||||||||
Purchase of property and equipment | (39,494 | ) | (19,685 | ) | (16,291 | ) | (2,556 | ) | ||||||||||||||||||||||||
Proceeds from disposal of property and equipment | 199 | 133 | 2,238 | 351 | ||||||||||||||||||||||||||||
Purchase of intangible assets | (9,586 | ) | (2,646 | ) | (2,646 | ) | (415 | ) | ||||||||||||||||||||||||
Net cash (used in)/provided by investing activities | (88,966 | ) | (144,415 | ) | 26,442 | 4,150 | ||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from short-term bank loan | — | — | 150,000 | 23,538 | ||||||||||||||||||||||||||||
Proceeds from issuance of common shares | — | — | 1 | — | ||||||||||||||||||||||||||||
Repurchase of ordinary shares | (37,559 | ) | — | — | — | |||||||||||||||||||||||||||
Repayment of convertible note s | — | — | (207,459 | ) | (32,555 | ) | ||||||||||||||||||||||||||
Proceeds from exercise of share options | 3,676 | 315 | 2,938 | 461 | ||||||||||||||||||||||||||||
Net cash (used in)/provided by financing activities | (33,883 | ) | 315 | (54,520 | ) | (8,556 | ) | |||||||||||||||||||||||||
Effect of exchange rate on cash and cash equivalents and restricted cash | 3,504 | (7,054 | ) | 3,080 | 483 | |||||||||||||||||||||||||||
Net decrease in cash and cash equivalents and restricted cash | (145,103 | ) | (75,344 | ) | (101,648 | ) | (15,950 | ) | ||||||||||||||||||||||||
Net decrease in cash and cash equivalents and restricted cash | (145,103 | ) | (75,344 | ) | (101,648 | ) | (15,950 | ) | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of year | 208,276 | 576,677 | 431,574 | 66,142 | 576,677 | 431,574 | 356,230 | 55,900 | ||||||||||||||||||||||||
Including: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents at the beginning of the year | 208,161 | 576,562 | 431,459 | 66,124 | 576,562 | 431,459 | 356,115 | 55,882 | ||||||||||||||||||||||||
Restricted cash at the beginning of the year | 115 | 115 | 115 | 18 | 115 | 115 | 115 | 18 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at the end of year | 576,677 | 431,574 | 356,230 | 54,595 | 431,574 | 356,230 | 254,582 | 39,950 | ||||||||||||||||||||||||
Including: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents at the end of the year | 576,562 | 431,459 | 356,115 | 54,577 | 431,459 | 356,115 | 90,552 | 14,210 | ||||||||||||||||||||||||
Restricted cash at the end of the year | 115 | 115 | 115 | 18 | 115 | 115 | 164,030 | 25,740 | ||||||||||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||||||||||||||
Income tax paid | — | — | 195 | 30 | — | 195 | 182 | 29 | ||||||||||||||||||||||||
Interest expense paid | — | — | 4,513 | 708 | ||||||||||||||||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||||||||||||||
Acquisition of long-term investments | — | 27,410 | 8,000 | 1,226 | 27,410 | 8,000 | — | — | ||||||||||||||||||||||||
Purchase of property and equipment included in accrued liabilities and other current liabilities | 104 | 4,140 | 1,355 | 208 | 4,140 | 1,355 | 2,484 | 390 | ||||||||||||||||||||||||
Purchase of intangible assets included in accrued liabilities and other current liabilities | — | — | 2,503 | 384 | — | 2,503 | — | — | ||||||||||||||||||||||||
1 | Organization and principal activities |
1 | Organization and principal activities (continued) |
1 | Organization and principal activities (continued) |
1 | Organization and principal activities (continued) |
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | 211,314 | 115,713 | 17,734 | 115,713 | 55,946 | 8,779 | ||||||||||||||||||
Restricted cash | 115 | 115 | 18 | 115 | 158,032 | 24,799 | ||||||||||||||||||
Short-term investment | — | 50,000 | 7,663 | |||||||||||||||||||||
Accounts and notes receivable | 133,745 | 44,539 | 6,826 | |||||||||||||||||||||
Short-term investment s | 50,000 | 30,000 | 4,708 | |||||||||||||||||||||
Accounts and notes receivable, net | 44,539 | 43,415 | 6,813 | |||||||||||||||||||||
Prepayments and other current assets | 73,789 | 27,915 | 4,278 | 27,915 | 37,807 | 5,933 | ||||||||||||||||||
Amounts due from the Company and its subsidiaries | 51,656 | 58,291 | 8,933 | 58,291 | 69,405 | 10,891 | ||||||||||||||||||
Amounts due from related parities | 521 | — | — | |||||||||||||||||||||
Amounts due from related parties | 0— | 35 | 5 | |||||||||||||||||||||
Total current assets | 471,140 | 296,573 | 45,452 | 296,573 | 394,640 | 61,928 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Property and equipment, net | 57,390 | 45,928 | 7,039 | 45,928 | 45,068 | 7,072 | ||||||||||||||||||
Intangible assets, net | 8,728 | 9,491 | 1,455 | 9,491 | 5,398 | 847 | ||||||||||||||||||
Long-term investments | 108,408 | 113,408 | 17,381 | 113,408 | 90,618 | 14,220 | ||||||||||||||||||
Other-non current assets | 1,925 | 4,719 | 723 | 4,719 | 3,298 | 518 | ||||||||||||||||||
Total non-current assets | 176,451 | 173,546 | 26,598 | 173,546 | 144,382 | 22,657 | ||||||||||||||||||
Total assets | 647,591 | 470,119 | 72,049 | 470,119 | 539,022 | 84,585 | ||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | 19,974 | 16,564 | 2,539 | 16,564 | 17,529 | 2,751 | ||||||||||||||||||
Deferred revenue and customer deposits | 73,820 | 104,681 | 16,043 | 104,681 | 115,900 | 18,187 | ||||||||||||||||||
Accrued liabilities and other current liabilities | 72,580 | 66,772 | 10,233 | 66,772 | 64,527 | 10,126 | ||||||||||||||||||
Amounts due to the Company and its subsidiaries | 185,263 | 224,124 | 34,349 | 224,124 | 389,063 | 61,053 | ||||||||||||||||||
Amounts due to related parties | 56 | — | — | 0— | 54 | 8 | ||||||||||||||||||
Total current liabilities | 351,693 | 412,141 | 63,164 | 412,141 | 587,073 | 92,125 | ||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||||||
Amounts due to the Company and its subsidiaries | 377,000 | 297,000 | 45,517 | 297,000 | 277,000 | 43,467 | ||||||||||||||||||
Deferred Revenue | — | 561 | 86 | |||||||||||||||||||||
Deferred r evenue | 561 | 569 | 89 | |||||||||||||||||||||
Other non-current liabilities | 64 | — | — | 0— | 560 | 88 | ||||||||||||||||||
Total non-current liabilities | 377,064 | 297,561 | 45,603 | 297,561 | 278,129 | 43,644 | ||||||||||||||||||
Total liabilities | 728,757 | 709,702 | 108,767 | 709,702 | 865,202 | 135,769 | ||||||||||||||||||
1 | Organization and principal activities (continued) |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Revenues | 709,594 | 900,454 | 465,066 | 71,274 | 900,454 | 465,066 | 351,243 | 55,118 | ||||||||||||||||||||||||
Cost of revenues | (499,589 | ) | (628,109 | ) | (248,637 | ) | (38,105 | ) | (628,109 | ) | (248,637 | ) | (83,259 | ) | (13,065 | ) | ||||||||||||||||
Net loss | (16,785 | ) | (95,829 | ) | (173,865 | ) | (26,646 | ) | (95,829 | ) | (173,865 | ) | (100,782 | ) | (15,815 | ) | ||||||||||||||||
Net cash (used in)/provided by operating activities | (68,316 | ) | 16,059 | 168,971 | 25,767 | |||||||||||||||||||||||||||
Net cash provided by operating activities | 16,059 | 168,971 | 68,336 | 10,723 | ||||||||||||||||||||||||||||
Net cash used in investing activities | (104,675 | ) | (34,451 | ) | (108,450 | ) | (16,492 | ) | (34,451 | ) | (108,450 | ) | (186 | ) | (29 | ) | ||||||||||||||||
Net cash provided by/(used in) financing activities | 154,901 | 197,943 | (156,124 | ) | (23,927 | ) | 197,943 | (156,124 | ) | 30,000 | 4,708 |
2 | Summary of Significant Accounting Policies |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
Computer equipment and servers | 3 – 5 years | |
Office furniture and equipment | 3 – 5 years | |
Leasehold improvements | over the shorter of lease terms or estimated useful lives of the assets |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
As of December 31, 2019 | As of December 31, 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Contract liabilities | 39,638 | 71,141 | 10,903 |
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Contract liabilities | 71,141 | 80,405 | 12,617 |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
2 | Summary of Significant Accounting Policies (continued) |
3 | Accounts and notes receivable, net |
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Accounts and notes receivable | 163,933 | 88,706 | 13,595 | 88,706 | 81,550 | 12,797 | ||||||||||||||||||
Less: allowance for doubtful accounts | (28,516 | ) | (43,820 | ) | (6,716 | ) | (43,820 | ) | (37,690 | ) | (5,914 | ) | ||||||||||||
Total accounts and notes receivable, net | 135,417 | 44,886 | 6,879 | 44,886 | 43,860 | 6,883 | ||||||||||||||||||
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Balance at beginning of year | 9,308 | 28,516 | 4,370 | 28,516 | 43,820 | 6,876 | ||||||||||||||||||
Provisions | 20,054 | 18,732 | 2,871 | 18,732 | (246 | ) | (39 | ) | ||||||||||||||||
Write-offs | (846 | ) | (3,428 | ) | (525 | ) | (3,428 | ) | (5,884 | ) | (923 | ) | ||||||||||||
Balance at end of year | 28,516 | 43,820 | 6,716 | 43,820 | 37,690 | 5,914 | ||||||||||||||||||
4 | Prepayments and other current assets |
As of December 31, | ||||||||||||||||
2019 | 2020 | |||||||||||||||
RMB | RMB | US$ | ||||||||||||||
Prepaid media cost | 45,452 | — | — | |||||||||||||
Prepaid service fee | 9,892 | 12,028 | 1,843 | |||||||||||||
VAT and other surcharges | 16,266 | 10,467 | 1,604 | |||||||||||||
Investment in a convertible loan | 8,000 | — | — | |||||||||||||
Office rental deposit | 2,321 | 636 | 97 | |||||||||||||
Receivables from sales of shares on behalf of employees | — | 11,060 | 1,695 | |||||||||||||
Refund from prepaid media cost | — | 6,838 | 1,048 | |||||||||||||
Others | (i | ) | 4,156 | 7,984 | 1,224 | |||||||||||
Total prepayments and other current assets | 86,087 | 49,013 | 7,511 | |||||||||||||
As of December 31, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
RMB | RMB | US$ | ||||||||||||||
Receivables on behalf of third party advertising companies | (i | ) | — | 12,599 | 1,977 | |||||||||||
Prepaid service fee | 12,028 | 11,410 | 1,790 | |||||||||||||
VAT and other surcharges | 10,467 | 5,618 | 882 | |||||||||||||
Investment in a convertible loan | — | 4,221 | 662 | |||||||||||||
Loans granted to equity investees | (ii | ) | 500 | 3,000 | 471 | |||||||||||
Office rental deposit | 636 | 919 | 144 | |||||||||||||
Prepaid media cost | — | 551 | 87 | |||||||||||||
Receivables from sales of shares on behalf of employees | 11,060 | 180 | 28 | |||||||||||||
Refund from prepaid media cost | 6,838 | — | — | |||||||||||||
Others | 7,484 | 8,172 | 1,282 | |||||||||||||
Total prepayments and other current assets | 49,013 | 46,670 | 7,323 | |||||||||||||
(i) |
(ii) | For the years ended December 31, 2019, 2020 and 2021, the Company recognized impairment charges on loans granted to equity RMB4,500 and RMB528 (US$83). The Company evaluates the impairment of the equity investments without readily determinable fair value along with loans the Company granted to those |
5 | Property and equipment, net |
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Office furniture and equipment | 4,414 | 4,744 | 744 | |||||||||
Computer equipment and servers | 162,587 | 163,392 | 25,640 | |||||||||
Leasehold improvements | 100 | 5,451 | 855 | |||||||||
Construction-in progress | 2,840 | 85 | 13 | |||||||||
Less: Accumulated depreciation and impairment | (96,419 | ) | (111,493 | ) | (17,495 | ) | ||||||
Total property and equipment, net | 73,522 | 62,179 | 9,757 | |||||||||
5 | Property and equipment, net (continued) |
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Office furniture and equipment | 5,982 | 4,414 | 676 | |||||||||
Computer equipment and servers | 149,947 | 162,587 | 24,918 | |||||||||
Leasehold improvements | 10,595 | 100 | 15 | |||||||||
Construction-in progress | — | 2,840 | 435 | |||||||||
Less: Accumulated depreciation and impairment | (60,289 | ) | (96,419 | ) | (14,776 | ) | ||||||
Total property and equipment, net | 106,235 | 73,522 | 11,268 | |||||||||
6 | Intangible assets, net |
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Computer software, systems and acquired technology | 11,460 | 15,693 | 2,405 | |||||||||||||||||||||
Acquired computer software, systems and technology | 15,693 | 13,623 | 2,138 | |||||||||||||||||||||
Less: Accumulated amortization | (2,650 | ) | (6,174 | ) | (946 | ) | (6,174 | ) | (8,225 | ) | (1,291 | ) | ||||||||||||
Total intangible assets, net | 8,810 | 9,519 | 1,459 | 9,519 | 5,398 | 847 | ||||||||||||||||||
6 | Intangible assets,net (continued) |
RMB | US$ | RMB | US$ | |||||||||||||
For the year ending December 31, 2021 | 4,182 | 641 | ||||||||||||||
2022 | 3,285 | 503 | ||||||||||||||
For the year ending December 31, 2022 | 2,782 | 437 | ||||||||||||||
2023 | 1,752 | 269 | 2,080 | 326 | ||||||||||||
2024 | 286 | 44 | 522 | 82 | ||||||||||||
2025 | 14 | 2 | 14 | 2 | ||||||||||||
2026 | 0 | 0 |
7 | Long-term investments |
7 | Long-term investments (continued) |
For the years ended December 31 | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Gross unrealized gains (upward adjustments) | 17,298 | — | — | |||||||||
Gross unrealized losses (downward adjustments including impairment) | — | (39,181 | ) | (6,005 | ) | |||||||
Net unrealized gains/losses on equity investments held | 17,298 | (39,181 | ) | (6,005 | ) | |||||||
Net realized gains on equity investments sold | 6,778 | — | — | |||||||||
Total net gains/losses recognized in other income, net | 24,076 | (39,181 | ) | (6,005 | ) | |||||||
For the years ended December 31 | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Gross unrealized gains (upward adjustments) | 17,298 | 0 | 0 | 0 | ||||||||||||
Gross unrealized losses (downward adjustments including impairment) | 0 | (39,181 | ) | (25,370 | ) | (3,981 | ) | |||||||||
Net unrealized gains/losses on equity investments held | 17,298 | (39,181 | ) | (25,370 | ) | (3,981 | ) | |||||||||
Net realized gains on equity investments sold | 6,778 | 0 | 0 | 0 | ||||||||||||
Total net gains/losses recognized in other income, net | 24,076 | (39,181 | ) | (25,370 | ) | (3,981 | ) | |||||||||
8 | Short-term loan |
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Short-term bank borrowings | 0 | 150,000 | 23,538 | |||||||||
Deferred revenue and customer deposits |
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Deferred revenue | 39,638 | 71,141 | 10,903 | 71,141 | 80,405 | 12,617 | ||||||||||||||||||
Customer deposits | 37,923 | 38,041 | 5,830 | 38,041 | 39,586 | 6,212 | ||||||||||||||||||
Total deferred revenue and customer deposits - current | 77,561 | 109,182 | 16,733 | |||||||||||||||||||||
Total deferred revenue and customer deposits – current | 109,182 | 119,991 | 18,829 | |||||||||||||||||||||
Deferred revenue - non-current | 8,150 | 6,049 | 927 | 6,049 | 3,845 | 603 | ||||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Balance at beginning of year | 26,416 | 37,923 | 5,812 | 37,923 | 38,041 | 5,969 | ||||||||||||||||||
Cash received from customers during the year | 419,303 | 374,811 | 57,442 | 374,811 | 225,976 | 35,461 | ||||||||||||||||||
Revenue recognized during the year | (399,933 | ) | (363,963 | ) | (55,780 | ) | (363,963 | ) | (220,333 | ) | (34,575 | ) | ||||||||||||
Refunds paid during the year | (7,863 | ) | (10,730 | ) | (1,644 | ) | (10,730 | ) | (4,098 | ) | (643 | ) | ||||||||||||
Balance at end of the year | 37,923 | 38,041 | 5,830 | 38,041 | 39,586 | 6,212 | ||||||||||||||||||
10 | Accrued liabilities and other current liabilities |
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Accrued payroll and welfare payables | 59,511 | 52,947 | 8,309 | |||||||||
Other taxes and surcharge | 19,360 | 9,932 | 1,559 | |||||||||
Service fees | 5,481 | 5,233 | 821 | |||||||||
Acquisition of intangible assets, property and equipment | 3,858 | 840 | 132 | |||||||||
Government grant | 4,564 | 4,500 | 706 | |||||||||
Rental and property management fee | 3,278 | 3,418 | 536 | |||||||||
Payables for sales of employees’ shares | 10,308 | 180 | 28 | |||||||||
Payables to third party advertising companies | (i) | 0 | 4,066 | 638 | ||||||||
Others | 2,776 | 4,189 | 659 | |||||||||
Total accrued liabilities and other current liabilities | 109,136 | 85,305 | 13,388 | |||||||||
(i) | Starting from January 1, 2021, the Company has fully exited the Targeted Marketing business and this balance represents the payments to third party advertising companies for targeted marketing related services as the Company acts as agent. |
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Accrued payroll and welfare payables | 55,507 | 59,511 | 9,120 | |||||||||
Other taxes and surcharge | 16,368 | 19,360 | 2,967 | |||||||||
Service fees | 5,934 | 5,481 | 840 | |||||||||
Acquisition of property and equipment | 4,351 | 3,858 | 591 | |||||||||
Government grant | 2,326 | 4,564 | 699 | |||||||||
Rental and property management fee | 2,115 | 3,278 | 502 | |||||||||
Payables for sales of employees’ shares | — | 10,308 | 1,581 | |||||||||
Others | 9,676 | 2,776 | 425 | |||||||||
Total accrued liabilities and other current liabilities | 96,277 | 109,136 | 16,725 | |||||||||
Share-based compensation |
Options Granted to Employees and Directors | Number of Options | Weighted- Average Exercise Price | Weighted- Average grant-date Fair Value per Option | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||
Outstanding, December 31, 2019 | 7,179,546 | 9.74 | 15.37 | 6.75 | 163,589 | |||||||||||||||
Granted | 1,578,810 | 0.25 | 18.97 | — | — | |||||||||||||||
Forfeited | 305,051 | 13.20 | 24.01 | — | — | |||||||||||||||
Expired | — | — | — | — | — | |||||||||||||||
Exercised | 1,252,489 | 4.20 | 8.24 | — | — | |||||||||||||||
Cancelled | — | — | — | — | — | |||||||||||||||
Outstanding, December 31, 2020 | 7,200,816 | 8.48 | 17.03 | 7.27 | 232,933 | |||||||||||||||
Vested and expected to vest at December 31, 2020 | 7,200,816 | 8.48 | 17.03 | 7.27 | 232,933 | |||||||||||||||
Vested at December 31, 2020 | 4,773,932 | 6.98 | 10.41 | 5.67 | 134,729 | |||||||||||||||
Share-based compensation (continued) |
Options Granted to Employees and Directors | Number of Options | Weighted- Average Exercise Price | Weighted- Average grant-date Fair Value per Option | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||||
RMB | RMB | RMB | ||||||||||||||||||
Outstanding, December 31, 2020 | 7,200,816 | 8.48 | 17.03 | 7.27 | 232,933 | |||||||||||||||
Granted | 1,367,791 | 7.26 | 24.61 | — | — | |||||||||||||||
Forfeited | 652,406 | 11.77 | 21.07 | — | — | |||||||||||||||
Expired | — | — | — | — | — | |||||||||||||||
Exercised | 549,007 | 5.50 | 9.19 | — | — | |||||||||||||||
Cancelled | — | — | — | — | — | |||||||||||||||
Outstanding, December 31, 2021 | 7,367,194 | 8.18 | 18.66 | 6.09 | 48,464 | |||||||||||||||
Vested and expected to vest at December 31, 2021 | 7,367,194 | 8.18 | 18.66 | 6.09 | 48,464 | |||||||||||||||
Vested at December 31, 2021 | 5,496,609 | 7.73 | 14.37 | 5.35 | 35,908 | |||||||||||||||
11 | Share-based compensation (continued) |
2018 | 2019 | 2020 | ||||
Risk-free interest rate | 2.27% - 2.93% | 1.65% - 2.54% | 0.63% - 1.88% | |||
Dividend yield | 0% | 0% | 0% | |||
Expected volatility | 45.30% - 46.10% | 44.23% - 44.71% | 44.37% - 47.83% | |||
Weighted average expected volatility | 45.98% | 44.53% | 46.37% | |||
Expected exercise multiple | 2.5 | 2.5 | 2.5 |
2019 | 2020 | 2021 | ||||
Risk-free interest rate | 1.65% - 2.54% | 0.63% - 1.88% | 0.94% - 1.70% | |||
Dividend yield | 0% | 0% | 0% | |||
Expected volatility | 44.23% - 44.71% | 44.37% - 47.83% | 47.45% - 56.62% | |||
Weighted average expected volatility | 44.53% | 46.37% | 50.26% | |||
Expected exercise multiple | 2.5 | 2.5 - 2.8 | 2.2 - 2.8 |
(i) | Risk-free interest |
(ii) | Dividend yield – The dividend yield is estimated based on the Company’s expected dividend policy over the expected term of the options. |
(iii) | Expected volatility – Expected volatility is estimated based on the historical volatility of common shares of several comparable publicly-traded companies in the same industry. |
(iv) | Expected exercise multiple – Expected exercise multiple is estimated based on changes in expected intrinsic value of the option and the likelihood of early exercise by employees. |
Share-based compensation (continued) |
Restricted Share Units Granted to Employees and Directors | Number of Share Units | Weighted- Average Exercise Price | Weighted- Average grant-date Fair Value per Option | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | Number of Share Units | Weighted- Average Exercise Price | Weighted- Average grant-date Fair Value per Option | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||
Outstanding, December 31, 2019 | 33,643 | — | 44.98 | 9.70 | 1,039 | |||||||||||||||||||||||||||||||||||
Outstanding, December 31, 2020 | 95,094 | — | 20.37 | 10.66 | 3,751 | |||||||||||||||||||||||||||||||||||
Granted | 95,095 | — | 20.41 | — | 0 | 119,568 | — | 13.92 | — | 0 | ||||||||||||||||||||||||||||||
Forfeited | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Expired | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exercised | 33,644 | — | 45.09 | — | — | 95,096 | — | 19.09 | — | — | ||||||||||||||||||||||||||||||
Cancelled | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Outstanding, December 31, 2020 | 95,094 | — | 20.37 | 10.66 | 3,751 | |||||||||||||||||||||||||||||||||||
Outstanding, December 31, 2021 | 119,566 | — | 14.94 | 9.88 | 1,189 | |||||||||||||||||||||||||||||||||||
Vested and expected to vest at December 31, 2020 | 95,094 | — | 20.37 | 10.66 | 3,751 | |||||||||||||||||||||||||||||||||||
Vested and expected to vest at December 31, 2021 | 119,566 | — | 14.94 | 9.88 | 1,189 | |||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2020 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Exercisable at December 31, 2021 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Cost of Revenue | — | 73 | 4 | 1 | 73 | 4 | 41 | 6 | ||||||||||||||||||||||||
Research and development | 9,448 | 12,819 | 7,176 | 1,100 | 12,819 | 7,176 | 13,801 | 2,166 | ||||||||||||||||||||||||
Sales and marketing | 3,347 | 6,040 | 3,965 | 608 | 6,040 | 3,965 | 2,609 | 409 | ||||||||||||||||||||||||
General and administrative | 11,766 | 28,352 | 17,713 | 2,715 | 28,352 | 17,713 | 13,761 | 2,160 | ||||||||||||||||||||||||
Total | 24,561 | 47,284 | 28,858 | 4,424 | 47,284 | 28,858 | 30,212 | 4,741 | ||||||||||||||||||||||||
Income taxes |
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Cayman Islands | 6,622 | (16,716 | ) | (31,966 | ) | (4,899 | ) | (16,716 | ) | (31,966 | ) | (23,555 | ) | (3,696 | ) | |||||||||||||||||
British Virgin Islands | (25 | ) | (30 | ) | (27 | ) | (4 | ) | (30 | ) | (27 | ) | (2 | ) | — | |||||||||||||||||
Hong Kong | 208 | (3,097 | ) | (1,790 | ) | (274 | ) | (3,097 | ) | (1,790 | ) | (1,564 | ) | (245 | ) | |||||||||||||||||
China | (72,972 | ) | (89,836 | ) | (191,206 | ) | (29,303 | ) | (89,836 | ) | (191,206 | ) | (115,431 | ) | (18,114 | ) | ||||||||||||||||
Total loss before income taxes | (66,167 | ) | (109,679 | ) | (224,989 | ) | (34,480 | ) | (109,679 | ) | (224,989 | ) | (140,552 | ) | (22,055 | ) | ||||||||||||||||
Income taxes (continued) |
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Current income tax expense | (35 | ) | (162 | ) | (86 | ) | (13 | ) | (162 | ) | (86 | ) | (32 | ) | (5 | ) | ||||||||||||||||
Deferred tax benefit | 5 | — | — | 0— | — | — | 0 | 0 | ||||||||||||||||||||||||
Total income tax expense | (30 | ) | (162 | ) | (86 | ) | (13 | ) | (162 | ) | (86 | ) | (32 | ) | (5 | ) | ||||||||||||||||
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Loss before income tax | (109,679 | ) | (224,989 | ) | (34,480 | ) | (224,989 | ) | (140,552 | ) | (22,055 | ) | ||||||||||||
Income tax expense computed at PRC statutory rate (25%) | (27,421 | ) | (56,247 | ) | (8,620 | ) | (56,247 | ) | (35,138 | ) | (5,514 | ) | ||||||||||||
International tax rate differential | 4,451 | 8,151 | 1,249 | 8,151 | 6,023 | 945 | ||||||||||||||||||
Preferential tax rate | 12,845 | 21,963 | 3,366 | 21,963 | 21,437 | 3,364 | ||||||||||||||||||
Deferred tax items tax rate differential | (10,157 | ) | (23,337 | ) | (3,577 | ) | (23,337 | ) | (22,935 | ) | (3,599 | ) | ||||||||||||
Research and development super-deduction | (26,910 | ) | (27,455 | ) | (4,208 | ) | (27,455 | ) | (32,595 | ) | (5,115 | ) | ||||||||||||
Non-deductible expenses | 12,587 | 7,132 | 1,094 | 7,132 | 8,092 | 1,270 | ||||||||||||||||||
Deferred tax expenses | — | 347 | 53 | 347 | — | — | ||||||||||||||||||
Recognition of prior year tax loss/ Expired prior year tax loss | (1,939 | ) | 3,382 | 518 | 3,382 | (4,851 | ) | (761 | ) | |||||||||||||||
Changes in valuation allowance | 36,706 | 66,150 | 10,138 | 66,150 | 59,999 | 9,415 | ||||||||||||||||||
Income tax expense | 162 | 86 | 13 | 86 | 32 | 5 | ||||||||||||||||||
Income taxes (continued) |
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
Deferred tax assets, net | ||||||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||||
Provision for doubtful debts | 7,484 | 23,418 | 3,589 | 23,418 | 27,327 | 4,288 | ||||||||||||||||||
Accrued expense | 9,516 | 10,841 | 1,660 | 10,841 | 12,923 | 2,028 | ||||||||||||||||||
Net operating loss carry forward | 108,101 | 164,559 | 25,220 | 164,559 | 218,042 | 34,216 | ||||||||||||||||||
Government grant related to assets | 359 | 684 | 105 | 684 | 1,411 | 221 | ||||||||||||||||||
Property and equipment depreciation | 73 | 144 | 22 | 144 | 0 | 0 | ||||||||||||||||||
Estimated liabilities | — | 7 | 1 | 7 | — | — | ||||||||||||||||||
Less: Valuation allowance | (188,119 | ) | (248,118 | ) | (38,935 | ) | ||||||||||||||||||
Total deferred tax assets | 11,534 | 11,585 | 1,818 | |||||||||||||||||||||
Deferred tax liabilities | ||||||||||||||||||||||||
Property and equipment depreciation | 0 | (867 | ) | (136 | ) | |||||||||||||||||||
Net unrealized gain on equity investments held | (3,564 | ) | (3,564 | ) | (546 | ) | (3,564 | ) | (3,564 | ) | (559 | ) | ||||||||||||
Unrealized loan interest income | — | (7,970 | ) | (1,221 | ) | (7,970 | ) | (7,154 | ) | (1,123 | ) | |||||||||||||
Valuation allowance | (121,969 | ) | (188,119 | ) | (28,830 | ) | ||||||||||||||||||
Total deferred tax liabilities | (11,534 | ) | (11,585 | ) | (1,818 | ) | ||||||||||||||||||
Net deferred tax assets | 0 | 0 | 0 | |||||||||||||||||||||
Net deferred tax liabilities | 0 | 0 | 0 | |||||||||||||||||||||
Total deferred tax assets, net | — | — | — | |||||||||||||||||||||
Convertible notes |
As of December 31, 2019 | Charge to profit and loss | Foreign currency translation adjustment | As of December 31, 2020 | |||||||||||||||||
RMB | RMB | RMB | RMB | US$ | ||||||||||||||||
Principal amount | 244,167 | — | (15,795 | ) | 228,372 | 35,000 | ||||||||||||||
Contingent redemption feature, contingent interest feature and debt issuance costs | (14,136 | ) | 10,654 | 339 | (3,143 | ) | (482 | ) | ||||||||||||
Total | 230,031 | 10,654 | (15,456 | ) | 225,229 | 34,518 | ||||||||||||||
RMB | US$ | As of December 31, 2020 | Charge to profit and loss | Redemption | Foreign currency translation adjustment | As of December 31, 2021 | ||||||||||||||||||||||||||
1 year (including 1 year) | 228,372 | 35,000 | ||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||
Principal amount | 228,372 | — | (228,508 | ) | 136 | — | — | |||||||||||||||||||||||||
Contingent redemption feature, contingent interest feature and debt issuance costs | (3,143 | ) | 3,108 | — | 35 | — | — | |||||||||||||||||||||||||
Total | 228,372 | 35,000 | 225,229 | 3,108 | (228,508 | ) | 171 | — | — | |||||||||||||||||||||||
RMB | US$ | |||||||
2021 | 8,821 | 1,352 | ||||||
2022 | 7,695 | 1,179 | ||||||
2023 | 5,429 | 832 | ||||||
2024 | 2,127 | 326 | ||||||
Total | 24,072 | 3,689 | ||||||
14 | Commitments and contingencies |
RMB | US$ | |||||||
2022 | 9,333 | 1,465 | ||||||
2023 | 6,577 | 1,032 | ||||||
2024 | 5,381 | 844 | ||||||
Total | 21,291 | 3,341 | ||||||
15 | Share capital |
Share capital (continued) |
For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2020 | ||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net loss attributable to Class A and Class B common shareholders | (46,606 | ) | (19,591 | ) | (85,502 | ) | (24,339 | ) | (175,650 | ) | (26,920 | ) | (49,425 | ) | (7,575 | ) | ||||||||||||||||
Deduct: Accretion of redeemable convertible preferred shares | (16,963 | ) | (7,131 | ) | 0— | 0— | 0— | 0— | 0— | 0— | ||||||||||||||||||||||
Net loss attributable to common shareholders | (63,569 | ) | (26,722 | ) | (85,502 | ) | (24,339 | ) | (175,650 | ) | (26,920 | ) | (49,425 | ) | (7,575 | ) | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average number of shares used in calculating basic and diluted loss per share | 40,441,999 | 17,000,189 | 59,721,341 | 17,000,189 | 60,415,978 | 60,415,978 | 17,000,189 | 17,000,189 | ||||||||||||||||||||||||
Basic and diluted loss per share | (1.57 | ) | (1.57 | ) | (1.43 | ) | (1.43 | ) | (2.91 | ) | (0.45 | ) | (2.91 | ) | (0.45 | ) |
For the year ended December 31, 2019 | For the year ended December 31, 2020 | For the year ended December 31, 2021 | ||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net loss attributable to Class A and Class B common shareholders | (85,502 | ) | (24,339 | ) | (175,650 | ) | (49,425 | ) | (110,258 | ) | (17,301 | ) | (30,326 | ) | (4,759 | ) | ||||||||||||||||
Net loss attributable to common shareholders | (85,502 | ) | (24,339 | ) | (175,650 | ) | (49,425 | ) | (110,258 | ) | (17,301 | ) | (30,326 | ) | (4,759 | ) | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average number of shares used in calculating basic and diluted loss per share | 59,721,341 | 17,000,189 | 60,415,978 | 17,000,189 | 61,809,501 | 61,809,501 | 17,000,189 | 17,000,189 | ||||||||||||||||||||||||
Basic and diluted loss per share | (1.43 | ) | (1.43 | ) | (2.91 | ) | (2.91 | ) | (1.78 | ) | (0.28 | ) | (1.78 | ) | (0.28 | ) |
Related party transactions |
Name of related parties | Relationship | |
Weidong Luo | Founder, Chief Executive Officer | |
Shenzhen Weixunyitong Information Technology Co., Ltd. | Company that is significantly influenced by Weidong Luo | |
Guangzhou Tianlang Network Technology Co., Ltd. | Company that is significantly influenced by Weidong Luo |
Related party transactions (continued) |
As of December 31, | As of December 31, | ||||||||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | ||||||||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||||
Shenzhen Weixunyitong Information Technology Co., Ltd. | 521 | 0— | 0— | ||||||||||||||||||||||||||
Guangzhou Tianlang Network Technology Co., Ltd. | 0— | 35 | 5 | ||||||||||||||||||||||||||
Total amounts due from related parties | (iii) | 521 | 0— | 0— | (i | ) | 0— | 35 | 5 | ||||||||||||||||||||
16.2 | Amounts due to related parties |
As of December 31, | As of December 31, | |||||||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||||||
Shenzhen Weixunyitong Information Technology Co., Ltd. | 56 | 0— | 0— | |||||||||||||||||||||||||
Guangzhou Tianlang Network Technology Co., Ltd. | 0— | 54 | 8 | |||||||||||||||||||||||||
Total amounts due to related parties | 56 | 0— | 0— | (i | ) | 0— | 54 | 8 | ||||||||||||||||||||
16.3 | Transactions with related parties |
For the year ended December 31, | ||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Services provided to: | (i | ) | ||||||||||||||||||
Guangzhou Tianlang Network Technology Co., Ltd. | 266 | 0 | 100 | 16 | ||||||||||||||||
Services received from: | (ii | ) | ||||||||||||||||||
Shenzhen Weixunyitong Information Technology Co.,Ltd. | 11,600 | 0 | 0 | 0 | ||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Services provided to: | (i | ) | ||||||||||||||||||
Shenzhen Weixunyitong Information Technology Co., Ltd. | 1,002 | 0— | 0— | 0— | ||||||||||||||||
Guangzhou Tianlang Network Technology Co., Ltd. | 1,542 | 266 | 0— | 0— | ||||||||||||||||
Total | 2,544 | 266 | 0— | 0— | ||||||||||||||||
Services received from: | (ii | ) | ||||||||||||||||||
Shenzhen Weixunyitong Information Technology Co., Ltd. | 20,909 | 11,600 | — | — | ||||||||||||||||
Office premises leased from: | ||||||||||||||||||||
Shenzhen Weixunyitong Information Technology Co., Ltd. | 475 | — | — | — | ||||||||||||||||
16 | Related party transactions (continued) |
(i) | The Company entered into agreements with Guangzhou Tianlang Network Technology Co., Ltd. to provide advertising services and JG Alliance service in 2021 and to provide certain data solutions and targeted marketing services in 2019. |
(ii) | The Company entered into an agreement with Shenzhen Weixunyitong Information Technology Co., Ltd to purchase ad inventory in 2019. |
17 | Revenues |
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Targeted Marketing | 696,190 | 213,662 | 0 | 0 | ||||||||||||
SAAS Businesses | ||||||||||||||||
Developer Services | 93,553 | 173,457 | 252,859 | 39,679 | ||||||||||||
Vertical Applications | 116,715 | 84,495 | 104,463 | 16,393 | ||||||||||||
Total SAAS Businesses | 210,268 | 257,952 | 357,322 | 56,072 | ||||||||||||
Total revenues | 906,458 | 471,614 | 357,322 | 56,072 | ||||||||||||
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Government grants | 12,546 | 10,346 | 20,879 | 3,276 | ||||||||||||
Gain on an equity investment sold (Note 7) | 6,778 | — | — | — | ||||||||||||
Unrealized gain on equity investments held (Note 7) | 17,298 | — | — | — | ||||||||||||
Impairment for long-term investments (Note 7) | — | (39,181 | ) | (25,370 | ) | (3,981 | ) | |||||||||
Impairment for loan receivables (Note 4) | — | (4,500 | ) | (528 | ) | (83 | ) | |||||||||
Income from ADR profit-sharing program | 2,190 | 2,257 | 2,111 | 332 | ||||||||||||
Others | — | 264 | — | — | ||||||||||||
Total | 38,812 | (30,814 | ) | (2,908 | ) | (456 | ) | |||||||||
Year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Targeted Marketing | 572,796 | 696,190 | 213,662 | 32,745 | ||||||||||||
SAAS Businesses | ||||||||||||||||
Developer Services | 60,106 | 93,553 | 173,457 | 26,583 | ||||||||||||
Vertical Applications | 81,239 | 116,715 | 84,495 | 12,950 | ||||||||||||
Total SAAS Businesses | 141,345 | 210,268 | 257,952 | 39,533 | ||||||||||||
Total revenues | 714,141 | 906,458 | 471,614 | 72,278 | ||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||
Cost or Amortized cost | Gross unrecognized holding gains | Gross unrecognized holding losses | Gross unrecognized gains | Gross unrecognized losses | Fair value | |||||||||||||||||||
RMB | RMB | |||||||||||||||||||||||
Held-to-maturity | 80,000 | — | — | — | — | 80,000 |
Short-term investments (continued) |
Year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Government grants | 7,483 | 12,546 | 10,346 | 1,586 | ||||||||||||
Gain on an equity investment sold (Note 7) | — | 6,778 | — | — | ||||||||||||
Unrealized gain on equity investments held (Note 7) | — | 17,298 | — | — | ||||||||||||
Impairment for long-term investments (Note 7) | — | — | (39,181 | ) | (6,005 | ) | ||||||||||
Impairment for loan receivables (Note 4) | — | — | (4,500 | ) | (690 | ) | ||||||||||
Income from ADR profit-sharing progra m | 966 | 2,190 | 2,257 | 346 | ||||||||||||
Others | — | — | 264 | 41 | ||||||||||||
Total | 8,449 | 38,812 | (30,814 | ) | (4,722 | ) | ||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||
Cost or Amortized cost | Gross unrecognized holding gains | Gross unrecognized holding losses | Gross unrecognized gains | Gross unrecognized losses | Fair value | |||||||||||||||||||||||||||
RMB | USD | RMB | USD | |||||||||||||||||||||||||||||
Held-to-maturity | 30,000 | 4,708 | — | — | — | — | 30,000 | 4,708 |
As of December 31, 2020 | ||||||||||||||||||||||||||||||||
Cost or Amortized cost | Gross unrecognized holding gains | Gross unrecognized holding losses | Gross unrecognized gains | Gross unrecognized losses | Fair value | |||||||||||||||||||||||||||
RMB | USD | RMB | USD | |||||||||||||||||||||||||||||
Held-to-maturity | 80,000 | 12,261 | — | — | — | — | 80,000 | 12,261 | ||||||||||||||||||||||||
Fair value measurements |
Fair value measurements (continued) |
Fair value measurement or disclosure at December 31, 2019 using | ||||||||||||||||||||
Total Fair Value at December 31, 2019 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value adjustment | ||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||
Fair value measurement — Non-Recurring: | ||||||||||||||||||||
Equity investments accounted for at fair value using the alternative measurement | 31,375 | — | — | 31,375 | 17,298 | |||||||||||||||
Total assets and liabilities measured at fair value | 31,375 | — | — | 31,375 | 17,298 |
Fair value measurement or disclosure at December 31, 2020 using | ||||||||||||||||||||||||
Total Fair Value at December 31, 2020 | Total Fair Value at December 31, 2020 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value adjustment | |||||||||||||||||||
RMB | US$ | RMB | RMB | RMB | RMB | |||||||||||||||||||
Fair value measurements on a Recurring basis | ||||||||||||||||||||||||
Derivative assets | 100 | 15 | — | 100 | — | — | ||||||||||||||||||
Fair value measurement — Non-Recurring: | — | — | — | — | ||||||||||||||||||||
Equity investments accounted for at fair value using the alternative measurement (i) | — | — | — | — | — | (38,739 | ) | |||||||||||||||||
Property and equipment, net (ii) | 4,505 | 690 | — | 4,505 | (10,952 | ) | ||||||||||||||||||
Total assets and liabilities measured at fair value | 4,605 | 705 | — | 4,605 | — | (49,691 | ) |
20 | Fair value measurements (continued) |
Fair value measurement at December 31, 2020 using | ||||||||||||||||||||
Total Fair Value at December 31, 2020 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value adjustment | ||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||||||
Derivative assets | 100 | — | 100 | — | — | |||||||||||||||
Fair value measurement on a non-recurring basis: | ||||||||||||||||||||
Equity investments accounted for at fair value using the alternative measurement | — | — | — | — | (38,739 | ) | ||||||||||||||
Property and equipment, net | 4,505 | — | 4,505 | — | (10,952 | ) | ||||||||||||||
Total assets and liabilities measured at fair value | 4,605 | — | 4,605 | — | (49,691 | ) |
Fair value measurement at December 31, 2021 using | ||||||||||||||||||||||||
Total Fair Value at December 31, 2021 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value adjustment | ||||||||||||||||||||
RMB | USD | RMB | RMB | RMB | RMB | |||||||||||||||||||
Fair value measurements on a recurring basis | ||||||||||||||||||||||||
Derivative assets | 5,989 | 940 | — | 5,989 | — | 5,989 | ||||||||||||||||||
Fair value measurement on a non-recurring basis | ||||||||||||||||||||||||
Equity investments accounted for at fair value using the alternative measurement (i) | 585 | 92 | — | — | 585 | (25,340 | ) | |||||||||||||||||
Total assets and liabilities measured at fair value | 6,574 | 1,032 | — | 5,989 | 585 | (19,351 | ) |
21 | Subsequent Event |
22 | Restricted net assets |
Condensed financial information of the parent company |
Condensed financial information of the parent company (continued) |
As of December 31 | As of December 31 | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | 114,489 | 92,123 | 14,118 | 92,123 | 6,724 | 1,055 | ||||||||||||||||||
Restricted cash | — | 5,998 | 941 | |||||||||||||||||||||
Derivative assets | — | 5,989 | 940 | |||||||||||||||||||||
Due from the entities within the Group | 7,198 | 6,930 | 1,062 | 6,930 | 6,871 | 1,078 | ||||||||||||||||||
Prepayments and other current assets | 2,528 | 2,511 | 385 | 2,511 | 7,314 | 1,148 | ||||||||||||||||||
Total current assets | 124,215 | 101,564 | 15,565 | 101,564 | 32,896 | 5,162 | ||||||||||||||||||
Non-current assets: | ||||||||||||||||||||||||
Long-term investments | 668,049 | 494,394 | 75,769 | 494,394 | 400,809 | 62,896 | ||||||||||||||||||
Other receivables | — | 638 | 100 | |||||||||||||||||||||
Intangible assets, net | 62 | 28 | 4 | 28 | — | — | ||||||||||||||||||
Total non-current assets | 668,111 | 494,422 | 75,773 | 494,422 | 401,447 | 62,996 | ||||||||||||||||||
Total assets | 792,326 | 595,986 | 91,338 | 595,986 | 434,343 | 68,158 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Short-term loans | — | 150,000 | 23,538 | |||||||||||||||||||||
Accrued liabilities and other current liabilities | 1,439 | 2,018 | 309 | 2,018 | 2,258 | 354 | ||||||||||||||||||
Due to the entities within the Group | 44,918 | 42,012 | 6,439 | 42,012 | 63,366 | 9,944 | ||||||||||||||||||
Convertible notes | — | 225,229 | 34,518 | 225,229 | — | — | ||||||||||||||||||
Total current liabilities | 46,357 | 269,259 | 41,266 | 269,259 | 215,624 | 33,836 | ||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||||||
Deferred revenue - non-current | 8,150 | 5,488 | 841 | |||||||||||||||||||||
Convertible notes | 230,031 | — | — | |||||||||||||||||||||
Deferred revenue | 5,488 | 3,276 | 514 | |||||||||||||||||||||
Total non-current liabilities | 238,181 | 5,488 | 841 | 5,488 | 3,276 | 514 | ||||||||||||||||||
Total liabilities | 284,538 | 274,747 | 42,107 | 274,747 | 218,900 | 34,350 | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Class A common shares (par value of US$0.0001 per share as of December 31, 2020 and 2021; 4,920,000,000 shares authorized as of December 31, 2020 and 2021, 61,392,170 shares and 62,036,273 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 37 | 38 | 6 | |||||||||||||||||||||
Class B common shares (par value of US$0.0001 per share as of December 31, 2020 and 2021; 30,000,000 shares authorized as of December 31, 2020 and 2021, 17,000,189 shares and 17,000,189 shares issued and outstanding as of December 31, 2020 and 2021) | 11 | 11 | 2 | |||||||||||||||||||||
Additional paid-in capital | 988,812 | 1,021,961 | 160,368 | |||||||||||||||||||||
Accumulated deficit | (678,434 | ) | (819,018 | ) | (128,522 | ) | ||||||||||||||||||
Accumulated other comprehensive income | 10,813 | 12,451 | 1,954 | |||||||||||||||||||||
Total shareholders’ equity | 321,239 | 215,443 | 33,808 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | 595,986 | 434,343 | 68,158 | |||||||||||||||||||||
Condensed financial information of the parent company (continued) |
As of December 31 | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ | ||||||||||
Shareholders’ equity | ||||||||||||
Class A common shares (par value of US$0.0001 per share as of December 31, 2019 and 2020; 4,920,000,000 shares authorized as of December 31, 2019 and 2020, 60,106,037 shares and 61,392,170 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 37 | 37 | 6 | |||||||||
Class B common shares | 11 | 11 | 1 | |||||||||
Treasury shares (81,930 and 0 class A common shares as of December 31, 2019 and 2020, respectively) | (1,999 | ) | — | — | ||||||||
Additional paid-in capital | 956,735 | 988,812 | 151,542 | |||||||||
Accumulated deficit | (453,359 | ) | (678,434 | ) | (103,975 | ) | ||||||
Accumulated other comprehensive income | 6,363 | 10,813 | 1,657 | |||||||||
Total shareholders’ equity | 507,788 | 321,239 | 49,233 | |||||||||
Total liabilities and shareholders’ equity | 792,326 | 595,986 | 91,338 | |||||||||
Years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Revenues | — | — | — | — | ||||||||||||
Cost of Revenues | — | — | — | — | ||||||||||||
Gross profit | — | — | — | — | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | — | — | — | — | ||||||||||||
Sales and marketing | — | — | (553 | ) | (87 | ) | ||||||||||
General and administrative | (14,389 | ) | (15,938 | ) | (17,785 | ) | (2,791 | ) | ||||||||
Share of losses of subsidiaries and VIE | (93,328 | ) | (193,109 | ) | (117,029 | ) | (18,364 | ) | ||||||||
Total operating expenses | (107,717 | ) | (209,047 | ) | (135,367 | ) | (21,242 | ) | ||||||||
Loss from operations | (107,717 | ) | (209,047 | ) | (135,367 | ) | (21,242 | ) | ||||||||
Foreign exchange loss, net | — | 6 | (3,351 | ) | (525 | ) | ||||||||||
Interest income | 2,754 | 544 | 363 | 57 | ||||||||||||
Interest expense | (10,178 | ) | (10,654 | ) | (7,820 | ) | (1,227 | ) | ||||||||
Other income (loss) | 5,300 | (5,924 | ) | (469 | ) | (74 | ) | |||||||||
Change in fair value of foreign currency swap contract | — | — | 6,060 | 951 | ||||||||||||
Loss before income taxes | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||
Income tax expenses | — | — | — | — | ||||||||||||
Net loss | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||
Condensed financial information of the parent company (continued) |
Years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Revenues | — | — | — | — | ||||||||||||
Cost of Revenues | — | — | — | — | ||||||||||||
Gross profit | — | — | — | — | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | — | — | — | — | ||||||||||||
Sales and marketing | — | — | — | — | ||||||||||||
General and administrative | (11,941 | ) | (14,389 | ) | (15,938 | ) | (2,443 | ) | ||||||||
Share of losses of subsidiaries and VIE | (72,750 | ) | (93,328 | ) | (193,109 | ) | (29,595 | ) | ||||||||
Total operating expenses | (84,691 | ) | (107,717 | ) | (209,047 | ) | (32,038 | ) | ||||||||
Loss from operations | (84,691 | ) | (107,717 | ) | (209,047 | ) | (32,038 | ) | ||||||||
Foreign exchange loss, ne t | (186 | ) | — | 6 | 1 | |||||||||||
Interest income | 3,013 | 2,754 | 544 | 85 | ||||||||||||
Interest expense | (6,599 | ) | (10,178 | ) | (10,654 | ) | (1,633 | ) | ||||||||
Other income (loss) | 964 | 5,300 | (5,924 | ) | (908 | ) | ||||||||||
Change in fair value of derivative liability | 21,302 | — | — | — | ||||||||||||
Loss before income taxes | (66,197 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||
Income tax expenses | — | — | — | — | ||||||||||||
Net loss | (66,197 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||
Accretion of contingently redeemable convertible preferred shares | (24,094 | ) | — | — | — | |||||||||||
Year ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net loss attributable to common share holders | (90,291 | ) | (109,841 | ) | (225,075 | ) | (34,493 | ) | ||||||||
Other comprehensive income (loss) | ||||||||||||||||
Foreign currency translation adjustment s | 11,688 | (2,037 | ) | 4,450 | 682 | |||||||||||
Total other comprehensive income (loss), net of tax | 11,688 | (2,037 | ) | 4,450 | 682 | |||||||||||
Comprehensive loss | (54,509 | ) | (111,878 | ) | (220,625 | ) | (33,811 | ) | ||||||||
Year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Net loss attributable to common share holders | (109,841 | ) | (225,075 | ) | (140,584 | ) | (22,060 | ) | ||||||||
Other comprehensive income (loss) | ||||||||||||||||
Foreign currency translation adjustments | (2,037 | ) | 4,450 | 1,638 | 257 | |||||||||||
Total other comprehensive income (loss), net of tax | (2,037 | ) | 4,450 | 1,638 | 257 | |||||||||||
Comprehensive loss | (111,878 | ) | (220,625 | ) | (138,946 | ) | (21,803 | ) | ||||||||
Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
Net cash provided by/ (used in) operating activities | 16,052 | 15,273 | (17,412 | ) | (2,669 | ) | 15,273 | (17,412 | ) | (24,383 | ) | (3,826 | ) | |||||||||||||||||||
Net cash used in investing activities | (535,995 | ) | (95,412 | ) | (6,525 | ) | (1,000 | ) | (95,412 | ) | (6,525 | ) | (4,859 | ) | (762 | ) | ||||||||||||||||
Net cash provided by/ (used in) financing activities | 614,884 | (33,845 | ) | 5,257 | 806 | (33,845 | ) | 5,257 | (54,520 | ) | (8,555 | ) | ||||||||||||||||||||
Effect of exchange rate changes | 24,866 | (9,763 | ) | (3,686 | ) | (565 | ) | (9,763 | ) | (3,686 | ) | 4,361 | 683 | |||||||||||||||||||
Net increase/ (decrease) in cash and cash equivalents | 119,807 | (123,747 | ) | (22,366 | ) | (3,428 | ) | |||||||||||||||||||||||||
Net decrease in cash and cash equivalents | (123,747 | ) | (22,366 | ) | (79,401 | ) | (12,460 | ) | ||||||||||||||||||||||||
Cash and cash equivalents at the beginning of year | 118,429 | 238,236 | 114,489 | 17,546 | 238,236 | 114,489 | 92,123 | 14,456 | ||||||||||||||||||||||||
Cash and cash equivalents at the end of year | 238,236 | 114,489 | 92,123 | 14,118 | 114,489 | 92,123 | 12,722 | 1,996 | ||||||||||||||||||||||||