Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | YY Inc. |
Entity Central Index Key | 1,530,238 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Voluntary Filers | No |
Trading Symbol | YY |
Class A common shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 945,245,908 |
Class B common shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 317,982,976 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 2,617,432 | $ 402,292 | ¥ 1,579,743 |
Short-term deposits | 6,000,104 | 922,199 | 3,751,519 |
Restricted short-term deposits | 1,000,000 | 153,697 | 0 |
Short-term investments | 124,550 | 19,143 | 0 |
Accounts receivable, net | 153,944 | 23,661 | 169,571 |
Inventory | 315 | 48 | 2,266 |
Amounts due from related parties | 11,190 | 1,720 | 135,245 |
Prepayments and other current assets | 221,939 | 34,111 | 224,732 |
Total current assets | 10,129,474 | 1,556,871 | 5,863,076 |
Non-current assets | |||
Deferred tax assets | 113,017 | 17,370 | 117,811 |
Investments | 1,153,019 | 177,216 | 918,602 |
Property and equipment, net | 1,016,998 | 156,310 | 838,750 |
Land use right, net | 1,832,739 | 281,687 | 1,872,394 |
Intangible assets, net | 37,481 | 5,761 | 58,926 |
Goodwill | 11,716 | 1,801 | 14,300 |
Amounts due from related parties | 20,000 | 3,074 | 0 |
Other non-current assets | 144,275 | 22,175 | 101,933 |
Total non-current assets | 4,329,245 | 665,394 | 3,922,716 |
Total assets | 14,458,719 | 2,222,265 | 9,785,792 |
Current liabilities | |||
Convertible bonds (including convertible bonds of the consolidated variable interest entity without recourse to the Company of nil and nil as of December 31, 2016 and 2017, respectively) | 0 | 0 | 2,768,469 |
Accounts payable (including accounts payable of the consolidated variable interest entity without recourse to the Company of RMB117,917 and RMB67,817 as of December 31, 2016 and 2017, respectively) | 76,351 | 11,735 | 137,107 |
Deferred revenue (including deferred revenue of the consolidated variable interest entity without recourse to the Company of RMB429,883 and RMB757,244 as of December 31, 2016 and 2017, respectively) | 758,044 | 116,509 | 430,683 |
Advances from customers (including advances from customers of the consolidated variable interest entity without recourse to the Company of RMB 56,108 and RMB80,406 as of December 31, 2016 and 2017, respectively) | 80,406 | 12,358 | 56,152 |
Income taxes payable (including income taxes payable of the consolidated variable interest entity without recourse to the Company of RMB112,779 and RMB142,204 as of December 31, 2016 and 2017, respectively) | 146,298 | 22,485 | 140,754 |
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the consolidated variable interest entity without recourse to the Company of RMB988,911 and RMB1,404,877 as of December 31, 2016 and 2017, respectively) | 1,465,963 | 225,314 | 1,066,038 |
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entity without recourse to the Company of RMB91,245 and RMB30,502 as of December 31, 2016 and 2017, respectively) | 30,502 | 4,688 | 91,245 |
Short-term loans (including short-term loans of the consolidated variable interest entity without recourse to the Company of nil and nil as of December 31, 2016 and 2017, respectively) | 588,235 | 90,410 | 0 |
Total current liabilities | 3,145,799 | 483,499 | 4,690,448 |
Non-current liabilities | |||
Convertible bonds (including convertible bonds of the consolidated variable interest entity without recourse to the Company of nil and nil as of December 31, 2016 and 2017, respectively) | 6,536 | 1,005 | 0 |
Deferred revenue(including deferred revenue of the consolidated variable interest entity without recourse to the Company of RMB19,125 and RMB52,185 as of December 31, 2016 and 2017, respectively) | 57,718 | 8,871 | 25,459 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated variable interest entity without recourse to the Company of RMB4,777 and RMB8,404 as of December 31, 2016 and 2017, respectively) | 10,810 | 1,661 | 8,058 |
Total non-current liabilities | 75,064 | 11,537 | 33,517 |
Total liabilities | 3,220,863 | 495,036 | 4,723,965 |
Commitments and contingencies | |||
Mezzanine equity | 524,997 | 80,691 | 9,272 |
Shareholders' equity | |||
Additional paid-in capital | 5,339,844 | 820,719 | 2,165,766 |
Statutory reserves | 62,718 | 9,640 | 58,857 |
Retained earnings | 5,218,110 | 802,009 | 2,728,736 |
Accumulated other comprehensive income / (loss) | (9,597) | (1,475) | 93,066 |
Total YY Inc.’s shareholders’ equity | 10,611,155 | 1,630,906 | 5,046,495 |
Non-controlling interests | 101,704 | 15,632 | 6,060 |
Total shareholders' equity | 10,712,859 | 1,646,538 | 5,052,555 |
Total liabilities, mezzanine equity and shareholders’ equity | 14,458,719 | 2,222,265 | 9,785,792 |
Class A common shares [Member] | |||
Shareholders' equity | |||
Common shares | 57 | 9 | 44 |
Class B common shares [Member] | |||
Shareholders' equity | |||
Common shares | ¥ 23 | $ 4 | ¥ 26 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares |
Convertible Debt, Current | ¥ 0 | $ 0 | ¥ 2,768,469 | |
Accounts payable | 76,351 | 11,735 | 137,107 | |
Deferred revenue | 758,044 | 116,509 | 430,683 | |
Advances from customers | 80,406 | 12,358 | 56,152 | |
Income taxes payable | 146,298 | 22,485 | 140,754 | |
Accrued liabilities and other current liabilities | 1,465,963 | 225,314 | 1,066,038 | |
Amounts due to related parties | 30,502 | 4,688 | 91,245 | |
Short-term Debt | 588,235 | 90,410 | 0 | |
Convertible Debt, Noncurrent | 6,536 | 1,005 | 0 | |
Deferred revenue | 57,718 | 8,871 | 25,459 | |
Deferred tax liabilities | ¥ 10,810 | $ 1,661 | ¥ 8,058 | |
Class A common shares [Member] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||
Common shares, shares authorized | shares | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Common shares, shares issued | shares | 945,245,908 | 945,245,908 | 750,115,028 | 750,115,028 |
Common shares, shares outstanding | shares | 945,245,908 | 945,245,908 | 750,115,028 | 750,115,028 |
Class B common shares [Member] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||
Common shares, shares authorized | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common shares, shares issued | shares | 317,982,976 | 317,982,976 | 359,557,976 | 359,557,976 |
Common shares, shares outstanding | shares | 317,982,976 | 317,982,976 | 359,557,976 | 359,557,976 |
Variable interest entity [Member] | ||||
Convertible Debt, Current | ¥ 0 | ¥ 0 | ||
Accounts payable | 67,817 | 117,917 | ||
Deferred revenue | 757,244 | 429,883 | ||
Advances from customers | 80,406 | 56,108 | ||
Income taxes payable | 142,204 | 112,779 | ||
Accrued liabilities and other current liabilities | 1,404,877 | 988,911 | ||
Amounts due to related parties | 30,502 | 91,245 | ||
Short-term Debt | 0 | 0 | ||
Convertible Debt, Noncurrent | 0 | 0 | ||
Deferred revenue | 52,185 | 19,125 | ||
Deferred tax liabilities | ¥ 8,404 | ¥ 4,777 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | |||||
Net revenues | ||||||||
Other revenues | ¥ 182,422 | $ 28,038 | ¥ 257,638 | ¥ 294,200 | ||||
Total net revenues | 11,594,792 | 1,782,088 | 8,204,050 | 5,897,249 | ||||
Cost of revenues | (7,026,402) | [1] | (1,079,938) | (5,103,430) | [2] | (3,579,744) | [3] | |
Gross profit | 4,568,390 | 702,150 | 3,100,620 | 2,317,505 | ||||
Operating expenses | ||||||||
Research and development expenses | (781,886) | [1] | (120,174) | (675,230) | [2] | (548,799) | [3] | |
Sales and marketing expenses | (691,281) | [1] | (106,248) | (387,268) | [2] | (312,870) | [3] | |
General and administrative expenses | (544,641) | [1] | (83,710) | (482,437) | [2] | (358,474) | [3] | |
Goodwill impairment | (2,527) | [1],[4] | (388) | (17,665) | [2],[4] | (310,124) | [3] | |
Fair value change of contingent consideration | 0 | 0 | 0 | [2] | 292,471 | [3] | ||
Total operating expenses | (2,020,335) | [1] | (310,520) | (1,562,600) | [2] | (1,237,796) | [3] | |
Gain on deconsolidation and disposal of subsidiaries | 37,989 | 5,839 | 103,960 | 0 | ||||
Other income | 113,187 | 17,397 | 129,504 | 82,300 | ||||
Operating income | 2,699,231 | 414,866 | 1,771,484 | 1,162,009 | ||||
Gain on partial disposal of investments | 45,861 | 7,049 | 25,061 | 0 | ||||
Interest expense | (32,122) | (4,937) | (81,085) | (97,125) | ||||
Interest income | 180,384 | 27,725 | 67,193 | 137,892 | ||||
Foreign currency exchange (losses) gains, net | (2,176) | (334) | 1,158 | (38,099) | ||||
Other non-operating expenses | 0 | 0 | 0 | (2,165) | ||||
Income before income tax expenses | 2,891,178 | 444,369 | 1,783,811 | 1,162,512 | ||||
Income tax expenses | (415,811) | (63,909) | (280,514) | (178,327) | ||||
Income before share of income in equity method investments, net of income taxes | 2,475,367 | 380,460 | 1,503,297 | 984,185 | ||||
Share of income in equity method investments, net of income taxes | 33,024 | 5,076 | 8,279 | 14,120 | ||||
Net income (loss) | 2,508,391 | 385,536 | 1,511,576 | 998,305 | ||||
Less: Net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified non-controlling interest shareholders | 15,156 | 2,329 | (12,342) | (34,938) | ||||
Net income attributable to YY Inc. | 2,493,235 | 383,207 | 1,523,918 | 1,033,243 | ||||
Other comprehensive income (loss): | ||||||||
Unrealized gain (loss) of available-for-sale securities, net of nil tax | (41,150) | (6,325) | 134,768 | 0 | ||||
Foreign currency translation adjustments, net of nil tax | (61,513) | (9,454) | (5,317) | 4,414 | ||||
Total comprehensive income | ¥ 2,390,572 | $ 367,428 | ¥ 1,653,369 | ¥ 1,037,657 | ||||
Net income per common share | ||||||||
-Basic (in CNY/dollars per share) | (per share) | [5] | ¥ 2.1 | $ 0.32 | ¥ 1.35 | ¥ 0.92 | |||
-Diluted (in CNY/dollars per share) | (per share) | [5] | ¥ 2.07 | $ 0.32 | ¥ 1.32 | ¥ 0.9 | |||
Weighted average number of common shares used in calculating net income per common share | ||||||||
-Basic (in shares) | [5] | 1,186,460,144 | 1,186,460,144 | 1,127,343,312 | 1,125,189,978 | |||
-Diluted (in shares) | [5] | 1,216,637,741 | 1,216,637,741 | 1,216,111,329 | 1,150,831,163 | |||
ADSs [Member] | ||||||||
Net income per common share | ||||||||
-Basic (in CNY/dollars per share) | (per share) | [5] | ¥ 42.03 | $ 6.46 | ¥ 27.04 | ¥ 18.37 | |||
-Diluted (in CNY/dollars per share) | (per share) | [5] | ¥ 41.33 | $ 6.35 | ¥ 26.4 | ¥ 17.96 | |||
Weighted average number of common shares used in calculating net income per common share | ||||||||
-Basic (in shares) | [5] | 59,323,007 | 59,323,007 | 56,367,166 | 56,259,499 | |||
-Diluted (in shares) | [5] | 60,831,887 | 60,831,887 | 60,805,566 | 57,541,558 | |||
Live streaming [Member] | ||||||||
Net revenues | ||||||||
Total net revenues | ¥ 10,670,954 | $ 1,640,096 | ¥ 7,027,227 | ¥ 4,539,857 | ||||
Online games [Member] | ||||||||
Net revenues | ||||||||
Total net revenues | 543,855 | 83,589 | 634,325 | 771,882 | ||||
Membership [Member] | ||||||||
Net revenues | ||||||||
Total net revenues | ¥ 197,561 | $ 30,365 | ¥ 284,860 | ¥ 291,310 | ||||
[1] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 Share based compensation expenses 217,553 40,108 257,661 | |||||||
[2] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 Share based compensation expenses 85,282 52,098 19,906 157,286 | |||||||
[3] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 Share based compensation expenses 125,092 20,481 39,799 185,372 | |||||||
[4] | The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results.In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“100-Online”) as well as impairment indicator for Bilin Online. Based on the results of the impairment assessment, an impairment charge of RMB13,804 for 100-Online and an impairment charge of RMB3,861 for Bilin Online were recognized, respectively.In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB2,527 for Zhuque was recognized.The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business. | |||||||
[5] | Each ADS represents 20 common shares. |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Share-based compensation | ¥ 257,661 | $ 39,602 | ¥ 157,286 | ¥ 185,372 |
Cost of revenues [Member] | ||||
Share-based compensation | 42,759 | 6,572 | 15,894 | 23,963 |
Research and development expenses [Member] | ||||
Share-based compensation | 122,348 | 18,805 | 78,816 | 70,951 |
Sales and marketing expenses [Member] | ||||
Share-based compensation | 4,417 | 679 | 3,107 | 3,283 |
General and administrative expenses [Member] | ||||
Share-based compensation | ¥ 88,137 | $ 13,546 | ¥ 59,469 | ¥ 87,175 |
Class A common shares [Member] | ||||
Number of common shares represented by each ADS | 20 | 20 | 20 | 20 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Class A common shares [Member]shares | Class B common shares [Member]shares | common Stock [Member]Class A common shares [Member]CNY (¥)shares | common Stock [Member]Class B common shares [Member]CNY (¥)shares | Additional paid-in capital [Member]CNY (¥) | Statutory reserves [Member]CNY (¥) | Retained Earnings [Member]CNY (¥) | Accumulated other comprehensive (loss) income [Member]CNY (¥) | Total YY Inc.'s shareholders' equity [Member]CNY (¥) | Non-controlling interests [Member]CNY (¥) |
Balance at Dec. 31, 2014 | ¥ 3,090,164 | ¥ 43 | ¥ 30 | ¥ 2,900,458 | ¥ 56,469 | ¥ 173,963 | ¥ (40,799) | ¥ 3,090,164 | ¥ 0 | |||
Balance (in shares) at Dec. 31, 2014 | shares | 706,173,568 | 427,352,696 | ||||||||||
Issuance of common shares for exercised share options | 245 | ¥ 0 | ¥ 0 | 245 | 0 | 0 | 0 | 245 | 0 | |||
Issuance of common shares for exercised share options (in shares) | shares | 6,611,970 | 0 | ||||||||||
Issuance of common shares for vested restricted shares and restricted share units | 0 | ¥ 1 | ¥ 0 | (1) | 0 | 0 | 0 | 0 | 0 | |||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | shares | 19,498,710 | 0 | ||||||||||
Class B common shares converted to Class A common shares (issued) | 0 | ¥ 3 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Class B common shares converted to Class A common shares (issued) (in shares) | shares | 57,794,720 | |||||||||||
Class B common shares converted to Class A common shares (converted) | ¥ (3) | |||||||||||
Class B common shares converted to Class A common shares (converted) (in shares) | shares | (57,794,720) | |||||||||||
Repurchase of Class A common shares | (1,041,686) | ¥ (4) | ¥ 0 | (1,041,682) | 0 | 0 | 0 | (1,041,686) | 0 | |||
Repurchase of Class A common shares, (in shares) | shares | (61,851,120) | 0 | ||||||||||
Share-based compensation | 152,779 | ¥ 0 | ¥ 0 | 152,779 | 0 | 0 | 0 | 152,779 | 0 | |||
Appropriation to statutory reserves | 0 | 0 | 0 | 38 | (38) | 0 | 0 | 0 | ||||
Set-up of subsidiaries with non-controlling interest shareholders | 7,798 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7,798 | |||
Components of comprehensive income | ||||||||||||
Net income (loss) attributable to YY Inc. and non-controlling interest shareholders | 1,033,105 | 0 | 0 | 0 | 0 | 1,033,243 | 0 | 1,033,243 | (138) | |||
Unrealized gain of available-for-sales securities | 0 | |||||||||||
Foreign currency translation adjustment, net of nil tax | 4,414 | 0 | 0 | 0 | 0 | 0 | 4,414 | 4,414 | 0 | |||
Balance at Dec. 31, 2015 | 3,246,819 | ¥ 43 | ¥ 27 | 2,011,799 | 56,507 | 1,207,168 | (36,385) | 3,239,159 | 7,660 | |||
Balance (in shares) at Dec. 31, 2015 | shares | 728,227,848 | 369,557,976 | ||||||||||
Issuance of common shares for exercised share options | 9 | 9 | 9 | |||||||||
Issuance of common shares for exercised share options (in shares) | shares | 234,720 | |||||||||||
Issuance of common shares for vested restricted shares and restricted share units | ¥ 0 | 0 | ||||||||||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | shares | 11,652,460 | |||||||||||
Class B common shares converted to Class A common shares (issued) | ¥ 1 | |||||||||||
Class B common shares converted to Class A common shares (issued) (in shares) | shares | 10,000,000 | |||||||||||
Class B common shares converted to Class A common shares (converted) | ¥ (1) | |||||||||||
Class B common shares converted to Class A common shares (converted) (in shares) | shares | (10,000,000) | |||||||||||
Deemed disposal of partial interest in a subsidiary arising from conversion of liability | 5,718 | ¥ 0 | ¥ 0 | 5,718 | 0 | 0 | 0 | 5,718 | 0 | |||
Share-based compensation | 143,922 | 0 | 0 | 143,922 | 0 | 0 | 0 | 143,922 | 0 | |||
Other change in equity in an equity investment | 4,800 | 4,800 | 4,800 | |||||||||
Deemed disposal of partial interest in an equity investment | (482) | 0 | 0 | (482) | 0 | 0 | 0 | (482) | 0 | |||
Appropriation to statutory reserves | 2,350 | (2,350) | ||||||||||
Set-up of subsidiaries with non-controlling interest shareholders | 6,500 | 6,500 | ||||||||||
Acquisition of subsidiaries with non-controlling interest shareholders | 291 | 0 | 0 | 0 | 0 | 0 | 0 | 291 | ||||
Capital injection in subsidiaries from non-controlling interest shareholders | 4,142 | 0 | 0 | 0 | 0 | 0 | 0 | 4,142 | ||||
Components of comprehensive income | ||||||||||||
Net income (loss) attributable to YY Inc. and non-controlling interest shareholders | 1,511,385 | 1,523,918 | 1,523,918 | (12,533) | ||||||||
Unrealized gain of available-for-sales securities | 134,768 | 0 | 0 | 0 | 0 | 0 | 134,768 | 134,768 | 0 | |||
Foreign currency translation adjustment, net of nil tax | (5,317) | (5,317) | (5,317) | |||||||||
Balance at Dec. 31, 2016 | 5,052,555 | ¥ 44 | ¥ 26 | 2,165,766 | 58,857 | 2,728,736 | 93,066 | 5,046,495 | 6,060 | |||
Balance (in shares) at Dec. 31, 2016 | shares | 750,115,028 | 359,557,976 | 750,115,028 | 359,557,976 | ||||||||
Issuance of common shares | 2,946,134 | ¥ 9 | ¥ 0 | 2,946,125 | 0 | 0 | 0 | 2,946,134 | 0 | |||
Issuance of common share (in shares) | shares | 132,250,000 | |||||||||||
Issuance of common shares for exercised share options | 20 | ¥ 0 | ¥ 0 | 20 | 20 | |||||||
Issuance of common shares for exercised share options (in shares) | shares | 379,120 | 0 | ||||||||||
Issuance of common shares for vested restricted shares and restricted share units | 0 | ¥ 1 | ¥ 0 | (1) | 0 | 0 | 0 | 0 | 0 | |||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | shares | 20,926,760 | 0 | ||||||||||
Class B common shares converted to Class A common shares (issued) | 0 | ¥ 3 | 0 | 0 | ||||||||
Class B common shares converted to Class A common shares (issued) (in shares) | shares | 41,575,000 | |||||||||||
Class B common shares converted to Class A common shares (converted) | ¥ (3) | |||||||||||
Class B common shares converted to Class A common shares (converted) (in shares) | shares | (41,575,000) | |||||||||||
Share-based compensation | 257,661 | ¥ 0 | ¥ 0 | 229,435 | 0 | 0 | 0 | 229,435 | 28,226 | |||
Deemed disposal of partial interest in an equity investment | (1,501) | 0 | 0 | (1,501) | (1,501) | |||||||
Appropriation to statutory reserves | 0 | 0 | 3,861 | (3,861) | ||||||||
Set-up of subsidiaries with non-controlling interest shareholders | 20,816 | 0 | 0 | 20,816 | ||||||||
Acquisition of subsidiaries with non-controlling interest shareholders | 453 | 0 | 0 | 453 | ||||||||
Capital injection in subsidiaries from non-controlling interest shareholders | 44,059 | 0 | 0 | 44,059 | ||||||||
Disposal of subsidiaries with non-controlling interest shareholders | 12,833 | 12,833 | ||||||||||
Accretion of subsidiary’s redeemable convertible preferred shares to redemption value for non-controlling interest shareholders | (154) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (154) | |||
Components of comprehensive income | ||||||||||||
Net income (loss) attributable to YY Inc. and non-controlling interest shareholders | 2,482,646 | 0 | 0 | 2,493,235 | 2,493,235 | (10,589) | ||||||
Unrealized gain of available-for-sales securities | (41,150) | $ (6,325) | 0 | 0 | 0 | 0 | 0 | (41,150) | (41,150) | 0 | ||
Foreign currency translation adjustment, net of nil tax | (61,513) | 0 | 0 | (61,513) | (61,513) | |||||||
Balance at Dec. 31, 2017 | ¥ 10,712,859 | $ 1,646,538 | ¥ 57 | ¥ 23 | ¥ 5,339,844 | ¥ 62,718 | ¥ 5,218,110 | ¥ (9,597) | ¥ 10,611,155 | ¥ 101,704 | ||
Balance (in shares) at Dec. 31, 2017 | shares | 945,245,908 | 317,982,976 | 945,245,908 | 317,982,976 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign currency translation adjustments, tax portion |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||||
Cash flows from operating activities | |||||||
Net income | ¥ 2,508,391 | $ 385,536 | ¥ 1,511,576 | ¥ 998,305 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation of property and equipment | 176,715 | 27,161 | 173,625 | 122,098 | |||
Amortization of acquired intangible assets and land use right | 62,419 | 9,594 | 100,892 | 64,201 | |||
Allowance for doubtful accounts | 15,106 | 2,322 | 45,914 | 4,167 | |||
Loss on disposal of property and equipment | 17,620 | 2,708 | 891 | 3,759 | |||
Impairment of investments | 43,205 | 6,640 | 80,104 | 6,000 | |||
Impairment of intangible assets | 0 | 0 | 3,828 | 57,199 | |||
Impairment of goodwill | 2,527 | [1],[2] | 388 | 17,665 | [2],[3] | 310,124 | [4] |
Fair value change of contingent consideration | 0 | 0 | 0 | [3] | (292,471) | [4] | |
Share-based compensation | 257,661 | 39,602 | 157,286 | 185,372 | |||
Share of income in equity method investments, net of income taxes | (33,024) | (5,076) | (8,279) | (14,120) | |||
Gain on partial disposal of investments | (45,861) | (7,049) | (25,061) | 0 | |||
Gain on deconsolidation and disposal of subsidiaries | (37,989) | (5,839) | (103,960) | 0 | |||
Deferred income taxes, net | 3,919 | 602 | (7,768) | (25,039) | |||
Foreign currency exchange (gains) losses, net | 2,176 | 334 | (1,158) | 38,099 | |||
Other non-operating expense | 0 | 0 | 0 | 2,165 | |||
Changes in operating assets and liabilities, net of business acquisition and disposal of subsidiaries | |||||||
Accounts receivable, net | 18,383 | 2,825 | (34,293) | 123,634 | |||
Prepayments and other assets | (48,277) | (7,420) | (97,888) | 45,128 | |||
Amounts due from related parties | 155 | 24 | 1,839 | (1,323) | |||
Inventory | 1,434 | 220 | 680 | (11,080) | |||
Amounts due to related parties | (18,615) | (2,861) | 66,328 | (13,743) | |||
Accounts payable | (39,060) | (6,003) | 36,888 | (22,654) | |||
Deferred revenue | 366,634 | 56,351 | 81,513 | 25,519 | |||
Advances from customers | 24,254 | 3,728 | 10,783 | 20,959 | |||
Income taxes payable | 5,544 | 852 | 33,351 | 18,242 | |||
Accrued liabilities and other current liabilities | 435,135 | 66,878 | 376,379 | 178,901 | |||
Net cash provided by operating activities | 3,718,452 | 571,517 | 2,421,135 | 1,823,442 | |||
Cash flows from investing activities | |||||||
Placements of short-term deposits | (9,667,447) | (1,485,861) | (8,027,325) | (1,869,789) | |||
Maturities of short-term deposits | 7,361,225 | 1,131,400 | 6,324,897 | 4,257,609 | |||
Placements of restricted short-term deposits | (1,000,000) | (153,697) | 0 | (1,492,799) | |||
Maturities of restricted short-term deposits | 0 | 0 | 389,221 | 522,981 | |||
Placement of short-term investments | (189,550) | (29,133) | 0 | 0 | |||
Maturities of short-term investments | 65,000 | 9,990 | 0 | 0 | |||
Purchase of property and equipment | (397,327) | (61,068) | (162,395) | (219,843) | |||
Purchase of intangible assets and land use right | (17,749) | (2,728) | (70,029) | (50,931) | |||
Purchase of other non-current assets | (82,645) | (12,702) | (5,403) | (1,926,224) | |||
Cash paid for equity investments | (21,740) | (3,341) | (107,010) | (500) | |||
Cash paid for cost investments | (301,848) | (46,393) | (90,234) | (351,800) | |||
Acquisition of an available-for-sale security | (2,059) | (316) | 0 | (6,117) | |||
Cash received from disposal of investments | 86,714 | 13,327 | 22,608 | 0 | |||
Cash dividend received from an equity investee | 0 | 0 | 6,720 | 2,400 | |||
Acquisition of businesses, net of cash and cash equivalents acquired | (6,161) | (947) | (1,946) | 5,553 | |||
Deconsolidation and disposal of subsidiaries, net of cash disposed | 117,005 | 17,983 | (5,370) | 0 | |||
Payment on behalf of related parties, net of repayment | 23,116 | 3,553 | (10,699) | 60,870 | |||
Loans to related parties | (24,962) | (3,837) | (44,500) | (159,000) | |||
Repayment of loans from related parties | 35,462 | 5,450 | 0 | 160,000 | |||
Loans to employees and third parties | (20,550) | (3,158) | (6,605) | (6,037) | |||
Repayment of loans from employees and third parties | 4,641 | 713 | 4,751 | 13,237 | |||
Proceeds from disposal of property and equipment | 1,359 | 209 | 181 | 12,368 | |||
Net cash used in investing activities | (4,037,516) | (620,556) | (1,783,138) | (1,048,022) | |||
Cash flows from financing activities | |||||||
Proceeds from exercise of vested share options | 20 | 3 | 9 | 245 | |||
Repurchase of common shares | 0 | 0 | 0 | (1,041,686) | |||
Capital contributions from the non-controlling interests | 64,875 | 9,971 | 10,642 | 7,798 | |||
Capital contributions from mezzanine equity holders | 509,535 | 78,314 | 0 | 0 | |||
Proceeds from bank borrowings | 621,118 | 95,464 | 0 | 1,148,500 | |||
Repayment of bank borrowings | 0 | 0 | 0 | (452,000) | |||
Proceeds from issuance of common shares, net of issuance cost | 2,950,607 | 453,500 | 0 | 0 | |||
Repayment of convertible bonds | (2,753,630) | (423,225) | 0 | 0 | |||
Net cash (used in) provided by financing activities | 1,392,525 | 214,027 | 10,651 | (337,143) | |||
Net increase in cash and cash equivalents | 1,073,461 | 164,988 | 648,648 | 438,277 | |||
Cash and cash equivalents at the beginning of the year | 1,579,743 | 242,802 | 928,934 | 475,028 | |||
Effect of exchange rate changes on cash and cash equivalents | (35,772) | (5,498) | 2,161 | 15,629 | |||
Cash and cash equivalents at the end of the year | 2,617,432 | 402,292 | 1,579,743 | 928,934 | |||
Supplemental disclosure of cash flows information: | |||||||
Cash paid for interest, net of amounts capitalized | (41,729) | (6,414) | (59,884) | (78,186) | |||
Acquisition of property and equipment in form of accounts payable | 16,865 | 2,592 | 37,649 | 66,673 | |||
Income taxes paid | ¥ (406,348) | $ (62,455) | ¥ (254,931) | ¥ (185,124) | |||
[1] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 Share based compensation expenses 217,553 40,108 257,661 | ||||||
[2] | The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results.In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“100-Online”) as well as impairment indicator for Bilin Online. Based on the results of the impairment assessment, an impairment charge of RMB13,804 for 100-Online and an impairment charge of RMB3,861 for Bilin Online were recognized, respectively.In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB2,527 for Zhuque was recognized.The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business. | ||||||
[3] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 Share based compensation expenses 85,282 52,098 19,906 157,286 | ||||||
[4] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 Share based compensation expenses 125,092 20,481 39,799 185,372 |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2017 | |
Organization and principal activities [Abstract] | |
Organization and principal activities | Organization and principal activities (a) Organization and principal activities YY Inc. (the “Company”), through its subsidiaries, its variable interest entities (“VIEs”, also refer to VIEs and their subsidiaries as a whole, where appropriate) (collectively, the “Group”) is principally engaged in live streaming business in the People's Republic of China (the “PRC” or “China”) through its two key platforms, namely YY Live and Huya, which are leading live streaming and live game broadcasting platforms. (b) Initial Public Offering The Company completed its initial public offering (“IPO”) on November 21, 2012 on the NASDAQ Global Market. (c) Principal subsidiaries and VIEs The details of the principal subsidiaries and VIEs through which the Company conducts its business operations as of December 31, 2017 are set out below: Name Place of Date of % of direct Principal activities Principal subsidiaries Duowan Entertainment Corporation (“Duowan BVI”) British Virgin Islands (“BVI”) November 6, 2007 100 % Investment holding Huanju Shidai Technology (Beijing) Co., Ltd. (“Beijing Huanju Shidai” or “Duowan Entertainment”) PRC March 19, 2008 100 % Investment holding Guangzhou Huanju Shidai Information Technology Co., Ltd. (“Guangzhou Huanju Shidai”) PRC December 2, 2010 100 % Software development Engage Capital Partners I, L.P. (“Engage L.P.”) Cayman Islands March 23, 2015 93.5 % Investment HUYA Inc. (“Huya”)(*) Cayman Islands March 30, 2017 80.7 % Investment holding Guangzhou Huya Technology Co., Ltd. (“Huya Technology”) PRC June 16, 2017 80.7 % Software development Principal VIEs Guangzhou Huaduo Network Technology Co., Ltd. (“Guangzhou Huaduo”) PRC April 11, 2005 100 % Holder of internet content provider licenses and internet value added services Zhuhai Huanju Interactive Entertainment Technology Co., Ltd. PRC May 4, 2015 100 % Software development Shanghai Yilian Equity Investment Partnership (LP) (“Shanghai Yilian”) PRC June 23, 2015 93.5 % Investment Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 80.7 % Holder of internet content provider licenses and internet value added services Guangzhou Wanhe Technology Co., Ltd. (“Guangzhou Wanhe”) PRC December 8, 2016 60 % Online advertising and software development Guangzhou Yilianyixing Investment Partnership (LP) (“Guangzhou Yilianyixing”) PRC June 28, 2017 99 % Investment (c) Principal subsidiaries and VIEs (continued) Note *: As disclosed in Note 30(b) and Note 30(d), Huya has issued Series B-2 redeemable convertible preferred shares on March 8, 2018 and YY has sold certain Class B Ordinanry Shares of Huya on March 20, 2018 and March 22, 2018, respectively. After these transactions, the Company's percentage of economic ownership over Huya is 48.3 Variable Interest Entities To comply with PRC laws and regulations that prohibit or restrict foreign ownership of companies that provide internet-content, the Group conducts its operations primarily through its principal VIEs Guangzhou Huaduo and Guangzhou Huya, which hold the internet value-added service license and approvals to provide such internet services in the PRC. (i) VIE agreements amongst Beijing Huanju Shidai, Guangzhou Huaduo and its nominee shareholders The following is a summary of the contractual arrangements entered among Beijing Huanju Shidai, Guangzhou Huaduo and its nominee shareholders: • Exclusive Technology Support and Technology Services Agreement Under the exclusive technology support and technology services agreement between Beijing Huanju Shidai and Guangzhou Huaduo, Beijing Huanju Shidai has the exclusive right to provide to Guangzhou Huaduo technology support and technology services related to all technologies needed for its business. Beijing Huanju Shidai owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Guangzhou Huaduo to Beijing Huanju Shidai is determined by various factors, including the expenses Beijing Huanju Shidai incurs for providing such services and Guangzhou Huaduo’s revenues. The term of this agreement will expire in 2028 and may be extended with Beijing Huanju Shidai’s written confirmation prior to the expiration date. Beijing Huanju Shidai is entitled to terminate the agreement at any time by providing 30 • Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement between Beijing Huanju Shidai and Guangzhou Huaduo, Beijing Huanju Shidai has the exclusive right to provide to Guangzhou Huaduo technology support, business support and consulting services related to the services provided by Guangzhou Huaduo, the scope of which is to be determined by Beijing Huanju Shidai from time to time. Beijing Huanju Shidai owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Guangzhou Huaduo to Beijing Huanju Shidai is a certain percentage of its earnings. The term of this agreement will expire in 2039 and may be extended with Beijing Huanju Shidai’s written confirmation prior to the expiration date. Beijing Huanju Shidai is entitled to terminate the agreement at any time by providing 30 • Exclusive Option Agreement The parties to the exclusive option agreement are Beijing Huanju Shidai, Guangzhou Huaduo and each of the shareholders of Guangzhou Huaduo. Under the exclusive option agreement, each of the shareholders of Guangzhou Huaduo irrevocably granted Beijing Huanju Shidai or its designated representative(s) an exclusive option to purchase, to the extent permitted under PRC law, all or part of his or its equity interests in Guangzhou Huaduo. Beijing Huanju Shidai or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Beijing Huanju Shidai’s prior written consent, Guangzhou Huaduo’s shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou Huaduo. The term of this agreement is ten years and may be extended at Beijing Huanju Shidai’s sole discretion. • Powers of Attorney Pursuant to the irrevocable power of attorney executed by each shareholder of Guangzhou Huaduo, each such shareholder appointed Beijing Huanju Shidai as its attorney-in-fact to exercise such shareholders’ rights in Guangzhou Huaduo, including, without limitation, the power to vote on its behalf on all matters of Guangzhou Huaduo requiring shareholder approval under PRC laws and regulations and the articles of association of Guangzhou Huaduo. Each power of attorney will remain in force until the shareholder ceases to hold any equity interest in Guangzhou Huaduo. • Share Pledge Agreement Pursuant to the share pledge agreement between Beijing Huanju Shidai and the shareholders of Guangzhou Huaduo, the shareholders of Guangzhou Huaduo have pledged all of their equity interests in Guangzhou Huaduo to Beijing Huanju Shidai to guarantee the performance by Guangzhou Huaduo and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement, exclusive technology support and technology services agreement and powers of attorney. If Guangzhou Huaduo and/or its shareholders breach their contractual obligations under those agreements, Beijing Huanju Shidai, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. (ii) VIE agreements amongst Huya Technology, Guangzhou Huya and its nominee shareholders In 2017, Huya undertook a reorganization (the “Huya Reorganization”) through setting up Huya Technology, a wholly owned subsidiary, and entering into a series of VIE agreements with Guangzhou Huya and its nominee shareholders. The Huya Reorganization was completed on July 10, 2017. The following is a summary of the contractual arrangements entered among Huya Technology, Guangzhou Huya and its nominee shareholders: • Exclusive Business Cooperation Agreement Huya Technology and Guangzhou Huya entered into exclusive business cooperation agreement under which Guangzhou Huya engages Huya Technology as its exclusive provider of technology support, business support and consulting services. Guangzhou Huya shall pay to Huya Technology service fees, which is determined by Huya Technology at its sole discretion. Huya Technology shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising from the performance of the agreement. During the term of the agreement, Guangzhou Huya shall not accept any consultations and/or services provided by any third party and shall not cooperate with any third party for the provision of identical or similar services without prior consent of Huya Technology. The term of this agreement is ten years and will be extended for ten years automatically after expiration, unless otherwise agreed by both parties in a written agreement. Huya Technology is entitled to terminate the agreement at any time by providing 30 • Exclusive Purchase Option Agreement Under the exclusive purchase option agreement, the nominee shareholders of Guangzhou Huya have granted Huya Technology or its designated representative(s) irrevocably an exclusive option to purchase, to the extent permitted under PRC law, all or part of their equity interests in Guangzhou Huya at the lowest price permitted by the laws of the PRC applicable at the time of exercise. Huya Technology or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Huya Technology’s prior written consent, the nominee shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou Huya. The term of this agreement is ten years and may be extended for another ten years at Huya Technology’s sole discretion. Huya Technology is entitled to terminate the agreement at any time by providing 30 • Equity Pledge Agreement Pursuant to the equity pledge agreement, the nominee shareholders of Guangzhou Huya have pledged all of their equity interests in Guangzhou Huya to Huya Technology to guarantee the performance by Guangzhou Huya and its nominee shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive purchase option agreement, and powers of attorney. The nominee shareholders shall not transfer or assign the equity interests, the rights and obligations in the equity pledge agreement or create or permit to create any pledges which may have an adverse effect on the rights or benefits of Huya Technology without Huya Technology's written consent. If Guangzhou Huya and/or its nominee shareholders breach their contractual obligations under those agreements, Huya Technology, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. • Power of Attorney Pursuant to the irrevocable power of attorney, Huya Technology is authorized by each of the nominee shareholders as its attorney-in-fact to exercise such nominee shareholders’ rights in Guangzhou Huya, including, without limitation, the power to vote on its behalf on all matters of Guangzhou Huya requiring nominee shareholder approval under PRC laws and regulations and the articles of association of Guangzhou Huya and rights to information relating to all business aspects of Guangzhou Huya. The term of this agreement is ten years from the execution date of this agreement and will be automatically extended for one more year indefinitely. Huya Technology has sole discretion to terminate the agreement at any time by providing 30 Through the aforementioned contractual agreements, Guangzhou Huaduo and Guangzhou Huya are considered VIEs in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) because the Company, through Beijing Huanju Shidai and Huya Technology, respectively, has the ability to: • exercise effective control over Guangzhou Huaduo and Guangzhou Huya; • receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from these VIEs as if it were their sole shareholder; and • have an exclusive option to purchase all of the equity interests in these VIEs. In addition to the aforementioned contractual agreements, Beijing Huanju Shidai also entered into similar contractual agreements with Beijing Tuda Science and Technology Co., Ltd. ("Beijing Tuda"). Beijing Bilin Changxiang Information Technology Co., Ltd. (“Bilin Changxiang”), a subsidiary of the Company, also entered into similar contractual agreements with Guangzhou Bilin Online Information Technology Co., Ltd. (formerly known as Bejing Bilin Online Information Technology Co., Ltd., "Bilin Online"). Through these contractual agreements, Beijing Tuda and Bilin Online are considered VIEs of the Group. In accordance with the aforementioned agreements, the Company has power to direct activities of the VIEs, and can have assets transferred out of the VIEs. Therefore the Company considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves of the VIEs amounting to RMB 3,213,143 Currently there is no contractual arrangement that could require the Company to provide additional financial support to the VIEs. As the Company is conducting its PRC internet value-added services business through the VIEs, the Company will, if needed, provide such support on a discretional basis in the future, which could expose the Company to a loss. There is no VIE where the Company has variable interest but is not the primary beneficiary. Please refer to Note 3(a) for the consolidated financial information of the Group’s VIEs as of December 31, 2017. |
Principal accounting policies
Principal accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Principal accounting policies [Abstract] | |
Principal accounting policies | 2. Principal accounting policies (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIEs economic performance, and also the Company’s obligation to absorb losses of the VIEs that could potentially be significant to the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Beijing Huanju Shidai, Bilin Changxiang, Huya Technology and ultimately the Company hold all the variable interests of the VIEs and have been determined to be the primary beneficiary of the VIEs. The Company deconsolidates its subsidiaries in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. The Company accounts for the deconsolidation of its subsidiaries by recognizing a gain or loss in net income/loss attributable to the Company in accordance with ASC 810. This gain or loss is measured at the date the subsidiaries are deconsolidated as the difference between (a) the aggregate of the fair value of any consideration received, the fair value of any retained non-controlling interest in the subsidiaries being deconsolidated, and the carrying amount of any non-controlling interest in the subsidiaries being deconsolidated, including any accumulated other comprehensive income/loss attributable to the non-controlling interest, and (b) the carrying amount of the assets and liabilities of the subsidiaries being deconsolidated. (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, mezzanine equity and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period in the consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the user relationship period related to online games revenue, assessment of whether the Group acts as a principal or an agent in different revenue streams, classification of perpetual items versus consumable items under item-based model, the determination of estimated selling prices of multiple element revenue contracts, income taxes, allowances for doubtful accounts, determination of share-based compensation expenses, impairment assessment of goodwill, long-lived assets and intangible assets, tax considerations for earnings retained in the Group’s VIEs, assessment on the probability of performance condition affiliated in equity-classified award under ASC 718 that affect vesting, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, British Virgin Islands, and Hong Kong is United States dollar (“US$”), while the functional currency of the other entities and VIEs in the Group is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains/losses, net in the consolidated statement of comprehensive income. (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB 6.5063 (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. (g) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of less than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. (h) Short-term investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. (i) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. (j) Equity investment The equity investment is comprised of investments in privately-held entities. The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately-held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. (k) Cost investment The cost investment is comprised of investments in privately-held entities. The Group accounts for cost investment which has no readily determinable fair value using the cost method. Under the cost method, the investment is measured initially at cost. The investment carried at cost should recognize income when dividends are received from the distribution of the investee’s earnings. The Group periodically evaluates the carrying value of investments accounted for under the cost method of accounting and any impairment is included in the consolidated statements of comprehensive income. (l) Available-for-sale investment The Group classifies its investments in debt and equity securities into one of three categories and accounts for these as follows: (i) debt securities that the Group has the positive intent and the ability to hold to maturity are classified as “held to maturity” and reported at amortized cost; (ii) debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as “trading securities” with unrealized holding gains and losses included in earnings; (iii) debt and equity securities not classified as held to maturity or as trading securities are classified as “available-for-sale” and reported at fair value. The Group has designated its investments in redeemable preferred shares of two private (m) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Residual Buildings 40 years 0 % Servers, computers and equipment 3 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Decoration of buildings 10 years 0 % Motor vehicles 4 years 5 % Furniture, fixture and office equipment 5 years 0%-5 % Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. All direct and indirect costs that are related to the construction of property and equipment and incurred before the assets are ready for their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment items and depreciation of these assets commences when they are ready for their intended use. (n) Business combinations Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. (o) Intangible assets Intangible assets mainly consist of brand names, operating rights, software, domain names and technology. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Estimated useful lives Brand names 1-15 years Operating rights Shorter of the economic life or contract terms Software 3 -5 years Domain names 15 years Technology 5 years Others 3-5 years (p) Land use right Land use right is carried at cost less accumulated amortization. Amortization of the land use right is made on straight-line basis over 40 (q) Impairment of long-lived assets For long-lived assets other than investments and goodwill whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Group tests impairment of long-lived assets at the reporting unit level when impairment indicator appeared and recognizes impairment in the event that the carrying value exceeds the fair value of each reporting unit. The impairment charges of intangible assets recorded in general and administrative expenses for the years ended December 31, 2015, 2016 and 2017 were amounting to RMB 57,199 3,828 (r) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. (s) Annual test for impairment of goodwill Goodwill assessment for impairment is performed on at least an annual basis on October 1 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of each reporting unit. (t) Convertible bonds The Group determines the appropriate accounting treatment of its convertible bonds in accordance with the terms in relation to the conversion feature, call and put options, and beneficial conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense, using the effective interest method, from the issuance date to the earliest conversion date. Interest expenses are recognized in the statement of comprehensive income in the period in which they are incurred. (u) Mezzanine equity and non-controlling interest Mezzanine equity For the Company’s majority-owned subsidiaries and consolidated VIEs, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the non-controlling interest is classified as mezzanine equity. In accordance with ASC subtopic 480-10, the Group calculated, on an accumulative basis from the acquisition date, (i) the amount of accretion that would increase the balance of non-controlling interests to their estimated redemption value over the period from the date of acquisition to the earliest redemption date of the non-controlling interests and (ii) the amount of net (loss) profit attributable to non-controlling shareholders of certain subsidiaries based on their ownership percentage. The carrying value of the non-controlling interests as mezzanine equity was adjusted by an accumulative amount equal to the higher of (i) and (ii). Each type of increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. Non-controlling interest Non-controlling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholder. (v) Revenue recognition The Group generates revenues from live streaming, online games, membership and others. Revenues from live streaming are generated from YY Live platform and Huya platform. Revenues from online games are generated from providing online game platform and access of the games for the game players. Membership subscription program enhanced user privileges when using the Group’s platforms. Other revenues mainly include online education revenue and advertising revenue. Online education services consist of vocational training and language training courses. Online advertising revenues are primarily generated from sales of different forms of advertising on the Group’s platforms. Revenue is recognized when persuasive evidence of an arrangement exists, service has been rendered, the price is fixed or determinable and collection is reasonably assured. The Group has a recharge system for users to purchase the Group's virtual currency. Users can recharge via various online payment platforms provided by third parties. Virtual currency is non-refundable and often consumed soon after it is purchased. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below unless otherwise stated. (i) Live streaming Live streaming mainly consists of YY Live platform and Huya platform. It generates revenue from sales of virtual items in the platforms. Users can access the platforms and view the live streaming content for free. The Group designs, creates and offers various virtual items for sales to users with pre-determined selling price. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to performers to show support for their favorite performers, or purchase time-based virtual items for one or multiple months for a monthly fee, which provide users with recognized status, such as priority speaking rights or special symbols over a period of time. Accordingly, live streaming revenue is recognized immediately when the consumable virtual item is used, or in the case of time-based virtual items, revenue is recognized ratably over the fixed period on a straight-line basis. The Group does not have further obligations to the user after the virtual items are consumed immediately or after the stated period of time for time-based items. Virtual items may be sold individually or bundled into one arrangement. When the Group’s users purchase multiple virtual items bundled within the same arrangement, the Group evaluates such arrangements under ASC 605-25 Multiple-Element Arrangements. The Group identifies individual elements under the arrangement and determines if such elements meet the criteria to be accounted for as separate units of accounting. The Group allocates the arrangement consideration to the separate units of accounting based on their relative selling price. The following hierarchy has been followed when determining the relative selling price for each element: (1) vendor specific objective evidence (“VSOE”), (2) third party evidence (“TPE”), and (3) best estimate of selling price (“BESP”). Given that the VSOE of the selling price cannot be determined, the Group has adopted a policy to allocate the consideration of the whole arrangement to different virtual item elements based on the TPE of selling price or the BESP for each virtual item element. The Group determines the fair values of elements sold in a bundle based on similar products sold separately on the YY Live platform and Huya platform based on the TPE of the selling price and determines the fair values of elements without similar products sold separately on the YY Live platform and Huya platform based on the BESP. The BESP is generally based on the selling prices of the various elements of a similar nature when they are sold to users on a stand-alone basis. The BESP may also be based on an estimated stand-alone pricing when the element has not previously been sold on a stand-alone basis. (ii) Online games revenue The Group generates revenues from offering virtual items in online games developed by third parties or the Group itself to gaming players. Historically, the majority of online games revenues for the three years ended December 31, 2015, 2016 and 2017 were derived from third parties developed games. Users play games through the Group’s platform free of charge and are charged for purchases of virtual items including consumable and perpetual items, which can be utilized in the online games to enhance their game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online games. The Group recognizes revenue when recognition criteria defined under U.S. GAAP are satisfied. For purposes of determining when the service has been provided to the paying player, the Group has determined that an implied obligation exists to the paying player to continue providing access to the games such that the users can utilize the virtual items purchased. Game players need to log on and access the games through the Group’s platform because their game tokens, virtual items, and game history are specific to the Group’s game accounts and non-transferable to other platforms. To purchase in-game virtual items, players can either charge their game accounts by purchasing game tokens or virtual currency from the Group’s platform, which is convertible into game tokens based on a predetermined exchange rate agreed among the Group and the relevant game developers. The proceeds from the sales of the Group’s virtual currency is recorded as “Advances from customers”, representing prepayments received from users in the form of the Group’s virtual currency not yet converted into game specific tokens. Upon the conversion into a game token from the Group’s virtual currency or upon the direct purchase of a game token, whichever is applicable, the proceeds will be shared between the Group and the relevant game developer based on a predetermined contractual ratio. Game tokens are non-refundable and non-exchangeable among different games. The Group’s portion, net of the game developer’s entitled consideration, is recorded as deferred revenue and amortized according to the prescribed revenue recognition policies described below. Users typically do not convert the virtual currency into game tokens or purchase the game tokens unless they plan to purchase in-game virtual items soon. There are two types of third party developed online games: - Non-exclusive third party developed games - Exclusive third party developed games Under the non-exclusive arrangement, game developers license the games to various platforms and the Group is only one of the platforms. Game developers will receive only revenue shared from the Group pursuant to the mutually agreed sharing percentage. Under the exclusive arrangement, game developers only license the game to the Group as the exclusive licensee. The Group can sub-license the games to other platforms and receive a portion of revenue sharing from sub-licensees. In addition to the revenue shared to the game developers, the Group should also pay an exclusive license fee to the game developers. - Non-exclusive third party developed games Pursuant to contracts signed between the Group and the respective game developers, revenues from the sale or conversion of game tokens for the purchase of in-game virtual items from online games developed by third parties are shared between the Group and the game developers based on a pre-agreed ratio for each game. These revenue-sharing contracts typically last for one to two years. The third party developed games under non-exclusive licensing contracts are maintained and updated by the game developers. The Group views the game developers to be the Group’s customers and considers the Group’s responsibilities under the agreements with the game developers to offer certain standard promotions that include providing access to the platform, announcing the new games to users on the platform, and occasional advertising on the Group’s platforms. The determination of whether to record these revenues using gross or net method is based on an assessment of various factors. The primary factors are whether the Group is acting as the principal in offering services to the game players or as agent in the transaction, and the specific requirement of each contract. The Group determined that for third party developed games, the third party game developers are the principals given the game developers design and develop the online game services offered, have reasonable latitude to establish prices of game tokens, and are responsible for maintaining and upgrading the game contents and virtual items. Accordingly, the Group records online games revenue, net of the pre-agreed portion of sharing of the revenues with the game developers. Given that third party developed games under non-exclusive licensing contracts are managed and administered by the third party game developers, the Group does not have access to the data on the consumption details such as when the game token is spent on the virtual items or the types of virtual items (consumable or perpetual items) purchased by each individual game player. However, the Group maintains historical data on timing of the conversion of its virtual currency into game specific tokens and the amount of purchases of game tokens. The Group believes that its performance for, and obligation to, the game developers correspond to the game developers’ services to the users. The Group has adopted a policy to recognize revenues relating to game tokens for third party developed games over the estimated user relationship period with the Group on a game-by-game basis, which is approximately one to six months for the periods presented. Future usage patterns may differ from historical usage patterns and therefore the estimated user relationship period with the Group may change in the future. The estimated user relationship period is based on data collected from those users who have acquired game tokens. To estimate the user relationship period, the Group maintains a system that captures the following information for each user: (a) the frequency that users log into each game via the Group’s platform, and (b) the amount and the timing of when the users convert or charge his or her game tokens. The Group estimates the user relationship period for a particular game to be the date a player purchases or converts from virtual currency to a game token through the date the Group estimates the user plays the game for the last time. This computation is performed on a user by user basis. Then, the results for all analyzed users are averaged to determine an estimated end user relationship period for each game. Revenues from in-game payments of each month are recognized over the user relationship period estimated for that game. The consideration of user relationship period with each online game is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. The Group assesses the estimated user relationship period for each game on a quarterly basis. Any adjustments arising from changes in the user relationship period as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections. - Exclusive third party developed games Under certain exclusive arrangements, the Group pays additional license fees to the game developers as the Group is entitled to an exclusive right to operate third party developed games in specified geographic areas. Based on ASC 350, the Group has adopted an accounting policy to recognize the exclusive license fee as an intangible asset upon the commercial launch of the related online games. This intangible asset is amortized on a straight-line basis over the shorter of the economic life or license period of the relevant online game. Pursuant to the exclusive licensing contracts signed between the Group and the third party game developers, the Group’s responsibilities in operating the licensed games vary for each game. The determination of whether to record these revenues using gros |
Certain risks and concentration
Certain risks and concentration | 12 Months Ended |
Dec. 31, 2017 | |
Certain risks and concentration [Abstract] | |
Certain risks and concentration | 3. Certain risks and concentration (a) PRC regulations Foreign ownership of internet-based businesses is subject to significant restrictions under the current PRC laws and regulations. The PRC government regulates internet access, the distribution of online information and the conduct of online commerce through strict business licensing requirements and other government regulations. These laws and regulations also limit foreign ownership in PRC companies that provide internet information distribution services. Specifically, foreign ownership in an internet information provider or other value-added telecommunication service providers may not exceed 50 As mentioned in Note 1(d), in order to comply with the PRC laws restricting foreign ownership in the online business in China, the Group operates the online business in China through contractual arrangements with its principal VIEs, namely Guangzhou Huaduo and Guangzhou Huya. As of December 31, 2017, Beijing Tuda and Guangzhou Huaduo own the majority equity interests of Guangzhou Huaduo and Guangzhou Huya, respectively. Guangzhou Huaduo and Guangzhou Huya hold the licenses and permits necessary to conduct its internet value-added services and online advertising in the PRC. If the Company had direct ownership of the VIE, it would be able to exercise its rights as a shareholder to effect changes in the board of directors, which in turn could affect changes at the management level, subject to any applicable fiduciary obligations. However, under the current contractual arrangements, it relies on the VIE and its shareholders’ performance of their contractual obligations to exercise effective control. In addition, the Group’s contractual agreements have terms range from 10 30 100 100 100 274,285 305,792 279,828 As of December 31, 2017, Beijing Tuda still has no substantial business operation, and Bilin Online and Guangzhou Huya have accumulated losses since inception. Therefore, no service fees were charged by Beijing Huanju Shidai, Bilin Changxiang and Huya Technology to the Group’s VIEs respectively for the periods presented. Further, the Group believes that the contractual arrangements among Beijing Huanju Shidai, Huya Technology and Bilin Changxiang, the VIEs, and their shareholders are in compliance with PRC law and are legally enforceable. However, the PRC government may issue from time to time new laws or new interpretations on existing laws to regulate this industry. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. The PRC government may also require the Group to restructure the Group’s operations entirely if it finds that its contractual arrangements do not comply with applicable laws and regulations. Furthermore, it could revoke the Group’s business and operating licenses, require it to discontinue or restrict its operations, restrict its right to collect revenues, block its website, require it to restructure its operations, impose additional conditions or requirements with which the Group may not be able to comply, or take other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties caused the Group to lose the rights to direct the activities of the VIEs or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIEs. The Group does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, Beijing Huanju Shidai, Huya Technology and Bilin Changxiang, and the VIEs. On January 19, 2015, the Ministry of Commerce of the PRC, or (the “MOFCOM”) released on its Website for public comment a proposed PRC law (the “Draft FIE Law”) that appears to include VIEs within the scope of entities that could be considered to be foreign invested enterprises (or “FIEs”) that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control”. If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach the Group’s VIE arrangements, and as a result, the Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of foreign invested enterprise entities where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law does not make clear how “control” would be determined for such purpose, and is silent as to what type of enforcement action might be taken against existing VIEs that operate in restricted industries and are not controlled by entities organized under PRC law or individuals who are PRC citizens. If a finding were made by PRC authorities, under existing laws and regulations or under the Draft FIE Law if it becomes effective, that the Group’s operation of certain of its businesses through VIEs violates the Draft FIE Law, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses may require the Group to take various actions as discussed in the paragraph above. The Group’s management considers the possibility of such a finding by PRC regulatory authorities under the Draft FIE Law, if it becomes effective, to be remote. The following consolidated financial information of the Group’s VIEs excluding the intercompany items with the Group’s subsidiaries was included in the accompanying consolidated financial statements as of and for the years ended: December 31, 2016 2017 RMB RMB Assets Current assets Cash and cash equivalents 1,397,738 1,343,731 Short-term deposits 1,235,000 3,400,000 Restricted short-term deposits - 1,000,000 Short-term investments - 124,550 Accounts receivable, net 165,971 149,958 Inventory 2,266 315 Amounts due from related parties 135,245 9,309 Prepayments and other current assets 207,245 190,456 Total current assets 3,143,465 6,218,319 Non-current assets Deferred tax assets 93,744 113,017 Investments 496,870 582,775 Property and equipment, net 261,915 359,912 Intangible assets, net 27,241 15,504 Land use right, net 1,872,394 1,832,739 Goodwill 2,527 - Amounts due from related parties - 20,000 Other non-current assets 85,583 133,812 Total non-current assets 2,840,274 3,057,759 Total assets 5,983,739 9,276,078 Liabilities Current liabilities Accounts payable 117,917 67,817 Deferred revenue 429,883 757,244 Advances from customers 56,108 80,406 Income taxes payable 112,779 142,204 Accrued liabilities and other current liabilities 988,911 1,404,877 Amounts due to related parties 91,245 30,502 Total current liabilities 1,796,843 2,483,050 Non-current liabilities Deferred revenue 19,125 52,185 Deferred tax liabilities 4,777 8,404 Total non-current liabilities 23,902 60,589 Total liabilities 1,820,745 2,543,639 For the year ended December 31, 2015 2016 2017 RMB RMB RMB Net revenues 5,821,305 8,164,100 11,577,104 Net income 1,267,111 1,874,435 2,766,279 For the year ended December 31, 2015 2016 2017 RMB RMB RMB Net cash provided by operating activities 2,164,953 2,538,836 3,974,085 Net cash used in investing activities (2,251,207) (1,313,002) (3,571,668) Net cash provided by financing activities 704,298 8,508 66,875 618,044 1,234,342 469,292 (b) Foreign exchange risk The revenues and expenses of the Group’s entities (c) Concentration risk (i) Concentration of revenue No individual customer accounted for more than 10% of net revenues for the years ended December 31, 2015, 2016 and 2017. (ii) Concentration of accounts receivable The Group collects accounts receivable from payment platforms, external game platforms and advertising customers. There were 2 and 3 payment platforms which had receivable balance exceeding l0% of the total accounts receivable balance of the Group as of December 31, 2016 and 2017, respectively. Details are as follows: December 31, 2016 2017 Payment platforms B1 19 % 26 % B2 17 % 18 % B3 * 19 % * Less than 10% (d) Credit risk As of December 31, 2016 and 2017, substantially all of the Group’s cash and cash equivalents, short-term deposits and short-term investments were placed with the PRC and international financial institutions. Management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. Nevertheless under the PRC law, it is required that a commercial bank in the PRC that holds third party cash deposits should maintain a certain percentage of total customer deposits taken in a statutory reserve fund for protecting the depositors’ rights over their interests in deposited money. PRC banks are subject to a series of risk control regulatory standards; PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Group believes that it is not exposed to unusual risks as these financial institutions are either PRC banks or international banks with high credit quality. The Group had not experienced any losses on its deposits of cash and cash equivalents and term deposits during the years ended December 31, 2015, 2016 and 2017 and believes that its credit risk to be minimal. |
Business combination and dispos
Business combination and disposal of subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Business combination [Abstract] | |
Business combination | 4. Business combination and disposal of subsidiaries Disposal of Shanghai Beifu Culture Communication Co., Ltd. (“Beifu”) Beifu, a company engaged in the operation of E-commerce, was acquired by the Group in 2015. In June 2016, the Group disposed of 60 3,500 10 13,236 36,710 Disposal of Beijing Huanqiu Xingxue Technology Development Co., Ltd. (“Xingxue”) Xingxue, a company engaged in online vocational education, was acquired by the Group in 2014. In December 2016, the Group disposed of 33.86 118,500 which was collected in 2017. 31.14 127,434 282,433 154,999 57,791 Disposal of Beijing Yunke Online Technology Development Co., Ltd.(“Yunke Online”) Yunke Online, a company engaged in online language education, was acquired by the Group in 2014. In January 2017, the Group disposed of 46 34 37,989 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and cash equivalents [Abstract] | |
Cash and cash equivalents | 5. Cash and cash equivalents Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions. Cash and cash equivalents balance as of December 31, 2016 and 2017 primarily consist of the following currencies: December 31, 2016 December 31, 2017 Amount RMB Amount RMB RMB 1,536,947 1,536,947 1,627,044 1,627,044 US$ 6,171 42,796 151,529 990,388 Total 1,579,743 2,617,432 |
Short-term deposits
Short-term deposits | 12 Months Ended |
Dec. 31, 2017 | |
Short-term deposits [Abstract] | |
Short-term deposits | 6. Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of less than one year. Short-term deposits balance as of December 31, 2016 and 2017 primarily consist of the following currencies: December 31, 2016 December 31, 2017 Amount RMB Amount RMB RMB 1,235,000 1,235,000 3,400,000 3,400,000 US$ 362,882 2,516,519 397,816 2,600,104 Total 3,751,519 6,000,104 |
Restricted short-term deposits
Restricted short-term deposits | 12 Months Ended |
Dec. 31, 2017 | |
Restricted short-term deposits [Abstract] | |
Restricted short-term deposits | 7. Restricted short-term deposits As of December 31, 2017, the Group had restricted short-term deposits balance of RMB 1,000 160 |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2017 | |
Cash and cash equivalents [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments | 8. Short-term investments As of December 31, 2017, the Company’s investments in financial instruments were RMB 124,550 |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2017 | |
Accounts receivable, net [Abstract] | |
Accounts receivable, net | 9. Accounts receivable, net December 31, 2016 2017 RMB RMB Accounts receivable, gross 224,791 161,300 Less: allowance for doubtful receivables (55,220) (7,356) Accounts receivable, net 169,571 153,944 The following table summarizes the details of the Company’s allowance for doubtful accounts: For the year ended December 31, 2015 2016 2017 RMB RMB RMB Balance at the beginning of the year (57,342) (58,791) (55,220) (Additions) reversals charged to general and administrative expenses, net (1,449) 3,571 (3,049) Write-off during the year - - 50,913 Balance at the end of the year (58,791) (55,220) (7,356) |
Prepayments and other current a
Prepayments and other current assets | 12 Months Ended |
Dec. 31, 2017 | |
Prepayments and other current assets [Abstract] | |
Prepayments and other current assets | 10. Prepayments and other current assets 2016 2017 RMB RMB Prepayments and deposits to vendors and content providers 70,347 81,319 Interests receivable 17,050 78,274 Employee advances 12,245 16,697 Rental and other deposits 13,015 14,214 Receivables from disposal of subsidiaries and investments 95,166 7,986 Others 16,909 23,449 Total 224,732 221,939 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | Investments 2016 2017 RMB RMB Cost investments (i) 477,733 703,566 Equity investments (ii) 252,272 309,241 Available-for-sale securities (iii) 188,597 140,212 Total 918,602 1,153,019 (i) In 2016 and 2017, the Group acquired 90,234 301,848 (ii) In 2016 and 2017, the Group acquired minority stake of a number of privately-held entities with total consideration of RMB 107,010 21,740 (iii) In 2016, one of the Group's investees became listed on NASDAQ Global Market. As the investment has readily determinable fair value upon listing, the Group reclassified this investment as an available-for-sale security upon its listing and recorded the investment at fair value with unrealized holding gain or loss recognized in other comprehensive income under ASC 320. In 2017, The Group disposed of 4 investments with total consideration of RMB 57,651 45,861 The Group assesses the existence of indicators for other-than-temporary impairment of the investments by considering factors including, but not limited to, current economic and market conditions, the operating performance of the entities including current earnings trends and other entity-specific information. In 2015, 2016 and 2017, based on the Group's assessment, an impairment charge of RMB 6,000 80,104 43,205 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property and equipment, net [Abstract] | |
Property and equipment, net | 12. Property and equipment, net Property and equipment consists of the following: 2016 2017 RMB RMB Gross carrying amount Buildings 482,333 731,640 Servers, computers and equipment 565,786 588,589 Leasehold improvements 80,812 18,651 Decoration of buildings 68,981 100,711 Motor vehicles 24,016 27,330 Furniture, fixture and office equipment 23,259 24,102 Construction in progress 5,586 44,103 Total 1,250,773 1,535,126 Less: accumulated depreciation (412,023) (518,128) Property and equipment, net 838,750 1,016,998 Depreciation expense for the years ended December 31, 2015, 2016 and 2017 were RMB 122,098 173,625 176,715 In 2017, the Group disposed of certain leasehold improvements and equipment and the loss from the disposals was RMB 17,620 |
Land use right, net
Land use right, net | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets, net [Abstract] | |
Land Use Right Disclosure | 13. Land use right, net Land use right consists of the following: December 31, 2017 RMB Gross carrying amount 1,924,563 Less: accumulated amortization (91,824) Land use right, net 1,832,739 Amortization expense for the years ended December 31, 2016 and 2017 were RMB 43,915 47,909 The estimated amortization expenses for each of the following five years are as follows: Amortization expense 2018 48,096 2019 48,096 2020 48,096 2021 48,096 2022 48,096 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets, net [Abstract] | |
Intangible assets, net | 14. Intangible assets, net The following table summarizes the Group’s intangible assets: December 31, 2016 2017 RMB RMB Gross carrying amount Operating rights 98,929 47,020 Software 30,632 34,413 Domain names 27,311 25,774 Technology 18,282 17,676 Brand names 59,034 - Others 18,300 - Total of gross carrying amount 252,488 124,883 Less: accumulated amortization Operating rights (77,659) (40,320) Software (13,110) (19,448) Domain names (8,449) (9,687) Technology (9,457) (10,695) Brand names (21,810) - Others (3,592) - Total accumulated amortization (134,077) (80,150) Less: accumulated impairment (59,485) (7,252) Intangible assets, net 58,926 37,481 Amortization expense for the years ended December 31, 2015, 2016 and 2017 were RMB 64,201 56,977 14,510 The estimated amortization expenses for each of the following five years are as follows: Amortization expense 2018 13,050 2019 8,639 2020 4,666 2021 1,838 2022 1,798 The weighted average amortization periods of intangible assets as of December 31, 2016 and 2017 are as below: December 31, 2016 2017 Domain names 15 15 Technology 5 5 Software 5 4 Operating rights 1 1 Brand names Not applicable Not applicable |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract] | |
Goodwill | 15. Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2017 are as follows: YY Live 100 Education Total RMB RMB RMB Balance as of December 31, 2015 37,452 114,186 151,638 Decrease in goodwill related to disposal (i) (19,354) (100,382) (119,736) Impairment charges (ii) (3,861) (13,804) (17,665) Foreign currency translation adjustments 63 - 63 Balance as of December 31, 2016 14,300 - 14,300 Impairment charges (ii) (2,527) - (2,527) Foreign currency translation adjustments (57) - (57) Balance as of December 31, 2017 11,716 - 11,716 (i) In June 2016, the Group disposed of 60 19,354 In December 2016, the Group disposed 33.86 100,382 (ii) The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results. In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“10 0 13,804 3,861 In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB 2,527 The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business. |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2017 | |
Deferred revenue [Abstract] | |
Deferred revenue | 16. Deferred revenue December 31, 2016 2017 RMB RMB Deferred revenue, current Live streaming 308,545 637,346 Membership 47,532 55,035 Online games 61,589 49,065 Others 13,017 16,598 Total current deferred revenue 430,683 758,044 Deferred revenue, non-current Live streaming 12,002 45,267 Membership 6,273 6,918 Others 7,184 5,533 Total non-current deferred revenue 25,459 57,718 |
Accrued liabilities and other c
Accrued liabilities and other current liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accrued liabilities and other current liabilities [Abstract] | |
Accrued liabilities and other current liabilities | 17. Accrued liabilities and other current liabilities December 31, 2016 2017 RMB RMB Revenue sharing fees 521,654 839,745 Salaries and welfare 200,606 220,539 Marketing and promotion expenses 68,243 109,901 Bandwidth costs 86,186 102,064 Value added taxes and other taxes payable 56,677 23,204 Deposits from content providers and suppliers 18,779 22,140 Other payable to content providers 22,725 20,849 Others 91,168 127,521 Total 1,066,038 1,465,963 |
Short-term loans
Short-term loans | 12 Months Ended |
Dec. 31, 2017 | |
Convertible bonds [Abstract] | |
Short-term Debt | 18. Short term loans December 31, 2016 2017 RMB RMB Short-term loans - 588,235 The Group entered into agreements with banks, pursuant to which the Group borrowed three loans with total principal amount of US$ 90 588,235 These loans were all with a maturity of less than one year 2.0 3.0 1,000 160 |
Convertible bonds
Convertible bonds | 12 Months Ended |
Dec. 31, 2017 | |
Convertible bonds [Abstract] | |
Convertible bonds | Convertible bonds December 31, 2016 2017 RMB RMB Convertible bonds, current 2019 Convertible Senior Notes 2,773,925 - Less: issuance cost (5,456) - 2,768,469 - Convertible bonds, non-current 2019 Convertible Senior Notes - 6,536 On March 18, 2014, the Company issued Convertible Senior Notes due 2019 with principal amount of US$ 400 2.25 April 1, 2019 The Notes are not redeemable prior to the maturity date of April 1, 2019, except that the holders of the Notes (the “Holders”) have a noncontingent option to require the Company to repurchase for cash all or any portion of their Notes on April 1, 2017. The repurchase price will equal 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. US$ 399 1 As of December 31, 2016 and 2017, RMB 2.8 399 6.5 1.0 Interest expense recognized during the years ended December 31, 2016 and 2017 was RMB 81,085 20,820 |
Cost of revenues
Cost of revenues | 12 Months Ended |
Dec. 31, 2017 | |
Cost of revenues [Abstract] | |
Cost of revenues | Cost of revenues For the year ended December 31, 2015 2016 2017 RMB RMB RMB Revenue sharing fees and content costs 2,343,224 3,790,624 5,727,081 Bandwidth costs 570,169 651,652 695,839 Salary and welfare 198,153 232,497 237,063 Depreciation and amortization 145,135 173,048 128,639 Payment handling costs 104,849 67,474 72,953 Other taxes and surcharges 27,794 44,659 48,360 Share-based compensation 23,963 15,894 42,759 Other costs 166,457 127,582 73,708 Total 3,579,744 5,103,430 7,026,402 |
Other income
Other income | 12 Months Ended |
Dec. 31, 2017 | |
Other income [Abstract] | |
Other income | 21. Other income For the year ended December 31, 2015 2016 2017 RMB RMB RMB Government grants 79,541 128,550 88,873 Others 2,759 954 24,314 Total 82,300 129,504 113,187 |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2017 | |
Income tax [Abstract] | |
Income tax | 22. Income tax (i) Cayman Islands (“Cayman”) Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) BVI Duowan BVI is exempted from income tax on its foreign-derived income in the BVI. There are no withholding taxes in the BVI. (iii) Hong Kong profits tax Under the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group in Hong Kong are subject to 16.5 (iv) PRC Enterprise Income Tax (“EIT”) The Company’s subsidiaries and VIEs in China are governed by the Enterprise Income Tax Law (“EIT Law”), which became effective on January 1, 2008. Pursuant to the EIT Law and its implementation rules, enterprises in China are generally subject to tax at a statutory rate of 25 15 During this three year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification as an HNTE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year, and must instead use the regular 25% EIT rate. Enterprises qualified as software enterprises can enjoy an income tax exemption for two years beginning with their first profitable year and a 50 10 The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25 The Group’s PRC entities provided for enterprise income tax are as follows: · Guangzhou Huaduo applied for the renewal of HNTE qualification and received approval in December 2016. Guangzhou Huaduo is entitled to continue to enjoy the beneficial tax rate of 15 · In 2017, Guangzhou Huanju Shidai was qualified as a KNSE after the relevant government authorities’ assessment and was entitled to a preferential income tax rate of 10 beginning from 2016. · In June 2017, Guangzhou Juhui Information Technology Co., Ltd. was qualified as a Software Enterprise, and started to enjoy the zero preferential tax rate beginning from 2016 and 12.5 · Other PRC subsidiaries and VIEs were subject to 25 According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim 150 Certain subsidiaries and VIEs of the Group successfully claimed the Super Deduction in ascertaining the tax assessable profits for the periods reported. The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between the mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5 if the foreign investor owns directly at least 25% of the shares of the FIE Aggregate undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2016 and 2017 are approximately RMB 4,784,432 7,605,499 In 2017, the Group determined to cause one of its PRC subsidiaries, Guangzhou Huanju Shidai, to declare and distribute a cash dividend of part of its stand-alone 2014-2016 earnings, amounted to US$ 15,000 1,500 The Group has a plan to indefinitely reinvest its 10 Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income are as follows: For the year ended December 31, 2015 2016 2017 RMB RMB RMB Current income tax expenses (203,366) (288,282) (411,892) Deferred income tax benefits (expenses) 25,039 7,768 (3,919) Income tax expense for the year (178,327) (280,514) (415,811) Reconciliation of the differences between statutory tax rate and the effective tax rate For the year ended December 31, 2015 2016 2017 PRC Statutory income tax rate (25.0) % (25.0) % (25.0) % Effect of preferential tax rate 14.0 % 11.6 % 13.2 % Effect of tax-exempt entities (1.6) % (1.7) % (0.3) % Effect of change in tax rate 0.5 % - - Permanent differences (i) (3.8) % (1.1) % (1.8) % Change in valuation allowance (1.7) % (1.5) % (2.3) % Effect of Super Deduction available to the Group 2.3 % 2.0 % 1.8 % Effective income tax rate (15.3) % (15.7) % (14.4) % (i) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. Deferred tax assets and liabilities Deferred taxes are measured using the enacted tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2016 and 2017 are as follows: December 31, 2016 2017 RMB RMB Deferred tax assets: Tax loss carried forward 66,816 74,951 Allowance for doubtful accounts receivable, accrued expense and others not currently deductible for tax purposes 65,721 62,177 Deferred revenue 57,284 97,858 Impairment of investment 7,949 12,783 Others 753 753 Valuation allowance (i) (80,712) (135,505) Total deferred tax assets, net 117,811 113,017 Deferred tax liabilities: Related to acquired intangible assets 3,281 2,406 Others 4,777 8,404 Total deferred tax liabilities, net 8,058 10,810 (i) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. Tax loss carry forwards As of December 31, 2017, the Group had tax loss carry forwards of approximately RMB 301,227 Amount RMB 2018 9,362 2019 14,323 2020 72,556 2021 69,190 2022 135,796 Total 301,227 In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. There were no ongoing examinations by tax authorities as of December 31, 2017. |
Mezzanine equity
Mezzanine equity | 12 Months Ended |
Dec. 31, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Temporary Equity Disclosure | Mezzanine equity December 31, 2016 2017 RMB RMB Huya’s Series A Preferred Shares (i) - 509,668 Other mezzanine equity 9,272 15,329 Total 9,272 524,997 (i) Huya’s Series A Preferred Shares On May 16, 2017, Huya entered into a Series A Preferred Shares subscription agreement with the Series A investors and pursuant to which, Huya issued 22,058,823 3.4 75,000 509,730 The key terms of the Series A Preferred Shares are summarized as follows: Dividends rights Holders of the Series A Preferred Shares shall be entitled to receive preferential dividends, payable out of funds or assets when and as such funds or assets become legally available therefor on parity with each other, when, as, and if declared by the Board of Directors of Huya, at a non-cumulative rate of at least 8% per annum, prior and in preference to the holders of any other class or series of shares, additionally, the holders of Series A Preferred Shares shall be entitled to receive dividends at the rate no less than the rate for the holders of any other class or series of shares of Huya (calculated on an as converted basis). Conversion feature Each Series A Preferred Share shall be convertible at the option of the holder thereof, at any time after the Series A issue date into such number of fully paid and non-assessable ordinary share as determined by dividing the Series A issue price by the then-effective applicable Series A conversion price. Upon the closing of a qualified IPO of Huya, each Series A Preferred Share shall automatically be converted into fully-paid and non-assessable ordinary shares of Huya based on the then-effective Series A conversion price. The “Series A conversion price” as of the date of issuance of the Series A Preferred Shares shall initially be the Series A issue price, resulting in an initial conversion ratio for the Series A Preferred Shares of 1:1, and thereafter shall be subject to adjustment and readjustment from time to time as hereinafter provided, being no less than the par value. Adjustments of conversion ratios include the following: adjustment for share splits and combinations, adjustment for ordinary share dividends and distributions, adjustments for other dividends, adjustments for reorganizations, mergers, consolidations, reclassifications, exchanges, substitutions and adjustments to Series A conversion price for dilutive issuance (dilutive issuance means the event of an issuance of new securities, at any time after the issuance date of the Series A Preferred Shares, for a consideration per ordinary share received by Huya (net of any selling concessions, discounts or commissions) less than conversion price of the Series A Preferred Shares in effect immediately prior to such issue. Redemption feature At any time and from time to time after the fourth (4th) anniversary of the date of issuance of the Series A Preferred Shares (the “Redemption Date”), upon written notice of the holders of fifty percent (50%) or more of the then issued and outstanding Series A Preferred Shares, Huya shall redeem all or a portion of the Series A Preferred Shares held by such holders at the Series A Redemption Price (as defined below), provided that (a) a qualified IPO, (b) the liquidation, dissolution or winding up of Huya and (c) a deemed liquidation event has not been consummated by Huya by the Redemption Date. The “Series A Redemption Price” for each Series A Preferred Share redeemed shall be 100% of the Series A issue price plus accrued daily interest (on the basis of a 365-day year basis) at a rate of eight percent (8%) per annum and any declared but unpaid dividends on such Series A Preferred Share. If Huya’s assets or funds legally available for any redemption of Series A Preferred Shares shall be insufficient to permit the payment of the applicable Series A Redemption Price in full in respect of each redeeming Series A Preferred Share, with respect to any remaining Series A Preferred Shares to be redeemed, each of the redeeming holders of the Series A Preferred Shares may choose to request Huya to (and Huya upon such request shall) execute and deliver to such redeeming holder a convertible promissory note (the “Convertible Note”) for the full amount of the redemption payment due but not paid to such holder; provided, that such Convertible Note shall be due and payable no later than twelve months of the redemption closing date, the full amount due under such Convertible Note shall accrue interest daily (on the basis of a 365-day year) at a rate of eight percent (8%) per annum. Voting rights The holder of a Series A Preferred Share shall be entitled to such number of votes as equals the whole number of ordinary shares into which such holder’s collective Series A Preferred Shares are convertible immediately. Liquidation preferences In the event of any liquidation, dissolution or winding up of Huya, whether voluntary or involuntary, all assets and funds of Huya legally available for distribution to the members (after satisfaction of all creditors’ claims and claims that may be preferred by Law) shall be distributed to the members of Huya as follows: (1) First, the holders of the Series A Preferred Shares shall be entitled to receive for each Series A Preferred Share held by such holder, on parity with each other and prior and in preference to any distribution of any of the assets or funds of Huya to the holders of any other class or series of shares by reason of their ownership of such shares, an amount equal to the sum of (i) 100% of the Series A issue price, and (ii) any and all accrued or declared but unpaid dividends on such Series A Preferred Shares (collectively, the “Series A Preference Amount”). If the assets and funds thus distributed among the holders of the Series A Preferred Shares shall be insufficient to permit the payment to such holders of the full Series A Preference Amount, then the entire assets and funds of Huya legally available for distribution shall be distributed ratably among the holders of the Series A Preferred Shares in proportion to the aggregate Series A Preference Amount each such holder is otherwise entitled to receive pursuant to this subparagraph (1). (2) If there are any assets or funds remaining after the Series A Preference Amount has been distributed or paid in full to the applicable Series A preferred shareholders pursuant to subparagraph (1) above, the remaining assets and funds of Huya available for distribution to the members shall be distributed ratably among all members according to the relative number of ordinary shares held by such member (treating for this subparagraph (2) all Series A Preferred Shares as if they had been converted to ordinary shares immediately prior to such liquidation, dissolution or winding up of Huya). Accounting of Series A Preferred Shares Huya classified the Series A Preferred Shares as mezzanine equity in the consolidated balance sheets because they were redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of Huya’s control. The Preferred Shares are recorded initially at fair value, net of issuance costs. As holders of the Series A Preferred Shares who exercise the redemption rights are allowed to request Huya to issue a convertible note if Huya’s assets or funds legally available for redemption are insufficient, the host contract is considered to be a debt host. The Group determined that there were no embedded derivatives requiring bifurcation from the host contract. The redemption feature is considered clearly and closely related to the host contract. While the conversion feature is not clearly and closely related to the host contract, no bifurcation is required as the conversion feature does not meet the definition of a derivative because the terms of the contracts do not require or explicitly state that it permits net settlement for the conversion feature. Huya recognized accretion to the respective redemption value of the Series A Preferred Shares over the period starting from issuance date to the earliest redemption date. Huya recognized accretion of the Series A Preferred Shares amounted to US$3,000 (equivalent to RMB19,842) for the year ended December 31, 2017. The accretion to the redemption value of the Series A Preferred Shares would also be US$ 3,000 19,842 78,000 509,668 Huya’s redeemable convertible preferred shares activities for the year ended December 31, 2017 are summarized below: Huya RMB Balances as of January 1, 2017 - Issuance of Huya’s preferred shares 509,730 Accretion of redeemable convertible preferred shares to redemption value 19,842 Foreign exchange (19,904) Balance as of December 31, 2017 509,668 Huya has used the discounted cash flow method to determine the underlying share value of Huya and adopted equity allocation model to determine the fair value of the Series A Preferred Shares as of the dates of issuance. Key valuation assumptions used to determine the fair value of Series A Preferred Shares are as follows: For the year ended December 31, 2017 Discount rate 25%-35% Risk-free interest rate 1.70% Volatility 50%-80% |
Common shares
Common shares | 12 Months Ended |
Dec. 31, 2017 | |
Common shares [Abstract] | |
Common shares | 24. Common shares On May 4, 2014 and March 5, 2015, the Company’s board of directors approved two share repurchase programs (the “Share Repurchase Program”) respectively, pursuant to which the Company may repurchase from time to time at management’s discretion, at prevailing market prices in the open market in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, up to US$ 200 3,092,556 61,851,120 54.82 2.74 169.5 During the year ended December 31, 2015, 26,110,680 57,794,720 As of December 31, 2015, 10,000,000,000 1,000,000,000 728,227,848 369,557,976 During the year ended December 31, 2016, 11,887,180 10,000,000 As of December 31, 2016, 10,000,000,000 1,000,000,000 750,115,028 359,557,976 On August 21, 2017, the Group completed its follow-on equity offering. The Company issued a total of 132,250,000 3.5 442.2 During the year ended December 31, 2017, 21,305,880 41,575,000 As of December 31, 2017, 10,000,000,000 1,000,000,000 945,245,908 317,982,976 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share based compensation [Abstract] | |
Share-based compensation | Share-based compensation (a) YY’s share-based awards (i) Share options Pre-2009 Scheme Options Grant of options Before the adoption of the Employee Equity Incentive Scheme (the “2009 Incentive Scheme”), 12,705,700 8,499,050 3,832,290 Vesting of options These Pre-2009 Scheme Options will vest over a four years’ service period, with 25 75 36 The following table summarizes the activities of the Pre-2009 Scheme Options for employees and non-employee for the years ended December 31, 2015, 2016 and 2017: Number of Weighted Weighted Aggregate Outstanding, vested and exercisable, December 31, 2014 7,380,345 0.0061 3.52 22,959 Exercised (6,611,970) 0.0061 2.46 Outstanding, vested and exercisable, December 31, 2015 768,375 0.0067 2.99 2,395 Exercised (234,720) 0.0067 2.00 Outstanding, vested and exercisable, December 31, 2016 533,655 0.0067 1.98 1,048 Exercised (379,120) 0.0067 0.97 Outstanding, vested and exercisable, December 31, 2017 154,535 0.0067 1.00 873 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. The aggregate intrinsic value in the table above represents the difference between the Company’s common shares as of December 31, 2015, 2016 and 2017 and the exercise price. The total intrinsic value of options exercised during the year ended December 31, 2015, 2016 and 2017 amounted to RMB 122,956 3,270 9,415 (ii) Restricted Share Units On September 16, 2011, the board of directors of the Company approved the 2011 Share Incentive Scheme. In October 2012, the board of directors of the Company resolved that the maximum aggregate number of Class A common shares which may be issued pursuant to all awards under the 2011 Share Incentive Scheme shall be 43,000,000 20,000,000 During the years ended December 31, 2015, 2016 and 2017, the Company granted restricted share units to employees of 16,012,644 1,530,008 22,090,030 During the years ended December 31, 2017, the Company granted restricted share units to non-employees of 150,000 The following table summarizes the restricted share units activity for the years ended December 31, 2015, 2016 and 2017: Number of Weighted Outstanding, December 31, 2014 38,806,095 1.5984 Granted 16,012,644 3.3358 Forfeited (7,312,548) 1.8920 Vested (11,222,589) 1.4374 Outstanding, December 31, 2015 36,283,602 2.3535 Granted 1,530,008 1.8618 Forfeited (4,628,202) 2.7386 Vested (12,229,688) 2.0151 Outstanding, December 31, 2016 20,955,720 2.4320 Granted 22,090,030 5.3001 Forfeited (4,007,728) 2.5561 Vested (8,163,878) 2.3227 Outstanding, December 31, 2017 30,874,144 4.4969 Expected to vest at December 31, 2017 27,320,315 4.3810 For the years ended December 31, 2015, 2016 and 2017, the Company recorded share-based compensation of RMB 152,205 143,350 211,189 As of December 31, 2017, total unrecognized compensation expense relating to the restricted share units was RMB 505,073 1.12 (b) Huya’s share-based awards (i) Share options Grant of options On July 10, 2017, the Board of Directors of Huya approved the establishment of Huya 2017 Share Incentive Plan, the purpose of which is to provide an incentive for employees contributing to Huya. The Huya 2017 Share Incentive Plan shall be valid and effective for 10 17,647,058 11,737,705 Vesting of options There are two types of vesting schedule under the Huya 2017 Share Incentive Plan, which are: i) 50 24 50 24 These options shall (i) be exercisable during its term cumulatively according to the vesting schedule set out in the grant notice and with the applicable provisions of Huya 2017 Share Incentive Plan, provided that the performance conditions otherwise agreed by the parties (if any) to which the option is subject have been fulfilled upon each corresponding vesting date; (ii) be deemed vested and exercisable immediately in the event of a change of control, regardless of the vesting schedule; (iii) be exercisable upon any arrangement as otherwise agreed by the parties based on their discussion in good faith. Movements in the number of share options granted to Huya’s employees and their related weighted average exercise prices are as follows: Number of options Weighted Weighted As of January 1, 2017 - - - Granted 11,737,705 2.5500 10.00 Forfeited (18,000) 2.5500 As of December 31, 2017 11,719,705 2.5500 9.75 Expected to vest at December 31, 2017 10,675,362 2.5500 9.61 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. For the year ended 2017 Weighted average fair value per option granted 1.3798 Weighted average exercise price 2.5500 Risk-free interest rate (1) 2.25 % Expected term (in year) (2) 10 Expected volatility (3) 55 % Dividend yield (4) - (1) The risk-free interest rate of periods within the contractual life of the share option is based on the China Government Bond yield as at the valuation dates. (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) Huya has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on Huya’s expected dividend policy over the expected term of the option. For the year ended December 31, 2017, the Company recorded share-based compensation of RMB 19,473 As of December 31, 2017, there was RMB 77,660 1.25 (ii) Ordinary Share awards In October 2017, the Company transferred, at nominal consideration, 1,551,495 28,226 The fair value of the ordinary shares of Huya was determined at the grant date by the Company. (c) Other subsidiaries’ share-based awards For the years ended December 31, 2015, 2016 and 2017, the Company recorded share-based compensation of RMB 33,167 13,936 a reversal 1,227 |
Basic and diluted net income pe
Basic and diluted net income per share | 12 Months Ended |
Dec. 31, 2017 | |
Basic and diluted net income per share [Abstract] | |
Basic and diluted net income per share | 26. Basic and diluted net income per share For the year ended December 31, 2015 2016 2017 RMB RMB RMB Numerator: Net income attributable to the Company 1,033,243 1,523,918 2,493,235 Interest expenses of convertible notes - 81,085 20,820 Numerator for diluted income per share 1,033,243 1,605,003 2,514,055 Denominator: Denominator for basic calculationweighted average number of Class A and Class B common shares outstanding 1,125,189,978 1,127,343,312 1,186,460,144 Dilutive effect of share options 2,711,486 684,455 376,918 Dilutive effect of restricted share units 22,929,699 15,816,362 11,598,378 Dilutive effect of convertible bonds (1) - 72,267,200 18,202,301 Denominator for diluted calculation 1,150,831,163 1,216,111,329 1,216,637,741 Basic net income per Class A and Class B common share 0.92 1.35 2.10 Diluted net income per Class A and Class B common share 0.90 1.32 2.07 Basic net income per ADS* 18.37 27.04 42.03 Diluted net income per ADS* 17.96 26.40 41.33 * Each ADS represents 20 common shares. (1) The weighted average number of common shares outstanding which could potentially dilute basic earnings per share in the future related to the 2019 Convertible Senior Notes was 72,267,200 18,202,301 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions [Abstract] | |
Related party transactions | 27. Related party transactions The table below sets forth the major related parties and their relationships with the Group: Relationship with the Group Guangzhou Sunhongs Corp., Ltd. (“Guangzhou Sunhongs”) (Formerly knowed as Guangzhou Shanghang Information Technology Co., Ltd.) Significant influence exercised by a principal shareholder of the Company Bigo Inc. (“Bigo”) Cost investment with significant influence Shanghai Ansha Network Technology Co., Ltd.(“Shanghai Ansha”) Cost investment with significant influence Shanghai Rongyi Culture Development Co., Ltd.(“Shanghai Rongyi”) Cost investment with significant influence Guangzhou Chenjun Equity Investment Limited Partnership(“Guangzhou Chenjun”) Equity investment Guangzhou Kuyou Information Technology Co., Ltd.(“Guangzhou Kuyou”) Equity investment Zhuhai Daren Computer Technology Co., Ltd. (“Zhuhai Daren”) Equity investment Beijing Huanqiu Xingxue Technology Development Co., Ltd.(“Xingxue”) Equity investment Yunke Online (1) Equity investment (1) Yunke Online became the Group’s equity investment in February 2017. During the years ended December 31, 2015, 2016 and 2017, significant related party transactions are as follows: For the year ended December 31, 2015 2016 2017 RMB RMB RMB Bandwidth service provided by Guangzhou Sunhongs 74,661 96,224 92,068 Online games revenue shared from related parties 163,912 100,078 87,414 Repayment of loans from related parties 160,000 - 35,462 Partial disposal of investments to Guangzhou Chenjun - 33,750 35,160 Loan to related parties 159,000 44,500 24,962 Payment on behalf of related parties, net of repayments (60,870) 10,699 (23,116) Partial disposal of a subsidiary to Guangzhou Chenjun - 24,394 - Purchase of operating rights from related parties 21,508 - - Others 21,153 13,573 14,987 As of December 31, 2016 and 2017, the amounts due from/to related parties are as follows: December 31, 2016 2017 RMB RMB Amounts due from related parties, current Due from Bigo 31,528 9,831 Due from Guangzhou Chenjun 58,144 - Due from Xingxue 20,000 - Due from Shanghai Rongyi 13,000 - Others 12,573 1,359 Total 135,245 11,190 Amounts due from related parties, non-current Due from Yunke Online - 20,000 Amounts due to related parties Due to Guangzhou Sunhongs 10,925 8,432 Due to Guangzhou Kuyou 30,996 7,583 Due to Shanghai Ansha - 6,178 Due to Zhuhai Daren 1,998 5,269 Due to Xingxue 42,128 50 Others 5,198 2,990 Total 91,245 30,502 The other receivables/payables from/to related parties are unsecured and payable on demand. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair value measurements [Abstract] | |
Fair value measurements | 28. Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The Group did not have any other financial instruments that were required to be measured at fair value on a recurring basis as of December 31, 2017 except for three available-for-sale investments and short-term investments. The following table summarizes the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2016 and December 31, 2017: As of December 31, 2016 Level 1 Level 2 Level 3 Total Items Investment - Available-for-sale securities 182,480 - 6,117 188,597 As of December 31, 2017 Level 1 Level 2 Level 3 Total Items Short-term investments 29,570 94,980 - 124,550 Investment - Available-for-sale securities 138,251 - 1,961 140,212 167,821 94,980 1,961 264,762 Short-term investments represented the investments issued by commercial banks with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair value is provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. For the instruments whose fair value is estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. The available-for-sale securities classified as Level 1 of fair value measurements is reported at fair value using a market approach based on its stock price. As of December 31, 2017, the accumulated unrealized income representing a change in fair value of RMB 87,802 The available-for-sale securities classified in Level 3 represented investment in the redeemable preferred shares of a private company. The roll forward of Level 3 investments are as following: Level 3 Available-for-sale securities Fair value as at January 1, 2016 and January 1, 2017 6,117 Other than temporary impairment (6,117) Addition 2,033 Foreign currency translation adjustment (72) Fair value as at December 31, 2017 1,961 Apart from the short-term investments and available-for-sale securities, the Company’s other financial instruments consist principally of cash and cash equivalents, short-term deposits, restricted short-term deposits, accounts receivable, other receivables, amounts due to/from related parties, accounts payable, certain accrued expenses and convertible bonds. The recorded values of cash and cash equivalents, short-term deposits, restricted short-term deposits, accounts receivable, other receivables, amounts due to/from related parties, accounts payable, certain accrued expenses and convertible bonds are recorded at cost which approximates fair value. The fair value of convertible bonds is within Level 2 of the fair value hierarchy. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and contingencies [Abstract] | |
Commitments and contingencies | 29. Commitments and contingencies (a) Operating lease commitments The Group leases facilities in the PRC under non-cancellable operating leases expiring on different dates. Payments under operating leases are expensed on a straight-line basis over the periods of the respective leases. 53,674 76,753 62,211 As of December 31, 2017, future minimum payments under non-cancellable operating leases consist of the following: Office rental RMB 2018 34,002 2019 10,030 2020 7,344 2021 and after 404 51,780 (b) Capital commitments As of December 31, 2017, the Group had outstanding capital commitments totaling RMB 111,966 related to properties (c) Litigation In October 2014, Guangzhou NetEase Computer System Co., Ltd. (“Guangzhou NetEase”) brought a copyright infringement claim against the Group in the Intermediate People’s Court of Guangzhou, alleging that the Group’s live game broadcasting program has infringed the copyright of one of their online games called Fantasy Westward Journey. The claimant is seeking RMB 100 In November 2017, the local court passed a judgment requesting the Company to compensate such game publisher for its loss amounting to RMB 20 20 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent events [Abstract] | |
Subsequent events | Subsequent events (a) In April 2018, Huya has filed a draft registration statement on Form F-1 to the U.S. Securities and Exchange Commission (the “SEC”) for a proposed IPO (“Proposed IPO”) of ADSs representing ordinary shares of Huya. The number of ADSs proposed to be offered and sold and the dollar amount proposed to be raised in the Proposed IPO have not yet been determined. The Proposed IPO is expected to commence after the SEC completes its review process, subject to market and other conditions. However, there can be no assurances as to the timing or completion of the Proposed IPO. (b) On March 8, 2018, Huya issued 64,488,235 7.16 461.6 34.6 (a) the sum of (i) 100% of the Series B-2 issue price, and (ii) any and all accrued or declared but unpaid dividends on such Series B-2 Preferred Shares or (b) the pro-rata share of the distributions of Huya available to all holders of ordinary shares on an as-converted basis price equal to the Series B-2 issue price plus accrued daily interest at a rate of 8% per annum 50.10 Concurrent with the Transaction, Huya adopted a dual voting structure on its shares. Huya’s ordinary shares were divided into Class A and Class B ordinary shares, while Huya’s preferred shares were divided into Series A-1, Series A-2, Series B-1 and Series B-2 preferred shares. Holders of Class A ordinary shares, Series A-1 and Series B-1 preferred shares (“Low Vote Shares”) are entitled to one vote per share in all shareholders’ meetings, while holders of Class B ordinary shares, Series A-2 and Series B-2 preferred shares (“High Vote Shares”) are entitled to ten votes per share. Each Class B ordinary share is convertible into one Class A ordinary share at any time at the discretion of the Class B shareholders thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Each Series A-2 and Series B-2 preferred share is convertible into one Class B ordinary share of Huya, while Series A-1 and Series B-1 preferred shares are only convertible into Class A ordinary shares and shall not be convertible into Class B ordinary shares. Prior to the consummation of a qualified IPO, in the event of any direct or indirect sale or transfer of any High Vote Shares to a party other than any of holders of High Vote Shares, such High Vote Shares, which are Class B ordinary shares, Series A-2 preferred shares or Series B-2 preferred shares, shall convert into an equal number of Low Vote Shares, which are Class A ordinary shares, Series A-1 preferred shares or Series B-1 preferred shares. Upon the closing of a qualified IPO, each Series A-2 and Series B-2 preferred share would automatically be converted into a Class B ordinary share, while each Series A-1 and Series B-1 preferred share would automatically be converted into a Class A ordinary share. After a qualified IPO, upon any sale, transfer, assignment or disposition of any Class B ordinary share by a shareholder to any person who is not an affiliate of such shareholder, or upon a change of ultimate beneficial ownership of any Class B ordinary share to any person who is not an affiliate of the registered shareholder of such share, such Class B ordinary share shall be automatically and immediately converted into one Class A ordinary share. Except for conversion rights and voting rights, holders of Class A and Class B ordinary shares have the same rights, Series A-1 and Series A-2 preferred shares have the same rights, and Series B-1 and Series B-2 have the same rights, respectively. High Vote Shares are held by the Company, the CEO of Huya and Tencent, respectively, representing 58.0 2.9 38.0 Upon the completion of the Transaction, Huya’s Board of Directors consists three directors, in which the Company appointed two directors and Tencent appointed one director. As the Company has the majority of voting power, the Company remains control over Huya. (c) On February 5, 2018, Tencent and Huya through their respective PRC affiliated entities, entered into a business cooperation agreement, which became effective on March 8, 2018. Pursuant to the agreement, both parties agreed to establish strategic cooperation relationship in various areas, including game publishing and operation, live game streaming content provision and broadcaster management. Detail cooperation terms will be negotiated on a case by case basis in the normal course of business. This agreement has a term of three years, which will be renewed subject to both parties’ negotiation. (d) On March 20, 2018 and March 22, 2018, the Company sold its 1,397,059 6,985,294 7.16 (e) On February 23, 2018, Duowan BVI entered into an Equity Transfer Agreement with Momo Inc., NASDAQ listed company, pursuant to which Duowan BVI has agreed to dispose 9.84 86 56.3 (f) On March 15, 2018, Huya granted 6,102,353 2.55 5.21 (g) On March 31, 2018, Huya granted 3,655,084 7.16 (h) In March 2018, Duowan BVI acquired all the equity interest of Bilin Information Technology Co., Ltd ("Bilin Information") held by the minority equity holders at a consideration of RMB 30 |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2017 | |
Restricted net assets [Abstract] | |
Restricted net assets | Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiaries and VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries and VIEs in the PRC are required to annually appropriate 10 50 2,678,921 3,559,861 The Company performed a test on the restricted net assets of subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets exceeded 25% of the consolidated net assets of the Company as of December 31, 2017 and the condensed financial information of the Company are required to be presented (Note 32). |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 32. Segment Reporting Starting from the first quarter of 2015, in order to better evaluate the Group’s business performance and better allocate resources the CODM began to review YY IVAS and others, Huya broadcasting, and 100 Education separately. In June 2016, the Group revamped the branding from YY IVAS to YY Live. Therefore, the segment of “YY IVAS and others” was renamed as “YY Live”. For the year ended December 31, 2015, net revenues of “YY IVAS” and “others” were presented to the CODM’s review separately. Following the revamp of the branding, net revenues of “YY Live” as a whole are presented to the CODM’s review. Segment presentation for the year ended December 31, 2015 has been updated to be consistent with the segment presentation for the year ended December 31, 2016 and 2017. As the Company has disposed of a great majority of its online education business before the end of 2016 and disposed of the remaining portion of its online education business in the beginning of 2017, 100 Education ceased to be an operating segment starting from the first quarter of 2017. In addition, the Company revamped its internal organization and one sub-business stream previously presented and reviewed under YY Live was changed to be presented and reviewed under Huya from the first quarter of 2017. Segment information of comparative periods has been restated accordingly. Starting from the three months ended December 31, 2017, the Company reviews the financial performance of the operating segments up to the net income of each segment. Segment information for comparative periods has been revised to be presented on the same basis as the year ended December 31, 2017. As the Group’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented. The Group currently does not allocate assets to all of its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. For the year ended December 31, 2017: YY Live Huya Total RMB RMB RMB Net revenues Live streaming 8,601,418 2,069,536 10,670,954 Online games 511,175 32,680 543,855 Membership 189,489 8,072 197,561 Others 107,894 74,528 182,422 Total net revenues 9,409,976 2,184,816 11,594,792 Cost of revenues (1) (5,096,538) (1,929,864) (7,026,402) Gross profit 4,313,438 254,952 4,568,390 Operating expenses (1) Research and development expenses (611,726) (170,160) (781,886) Sales and marketing expenses (603,989) (87,292) (691,281) General and administrative expenses (442,646) (101,995) (544,641) Goodwill impairment (2,527) - (2,527) Total operating expenses (1,660,888) (359,447) (2,020,335) Gain on deconsolidation and disposal of subsidiaries 37,989 - 37,989 Other income 103,558 9,629 113,187 Operating income (loss) 2,794,097 (94,866) 2,699,231 Interest expense (32,122) - (32,122) Interest income 166,335 14,049 180,384 Gain on partial disposal of investments 45,861 - 45,861 Foreign currency exchange losses, net (2,176) - (2,176) Income (loss) before income tax expenses 2,971,995 (80,817) 2,891,178 Income tax expenses (415,811) - (415,811) Income (loss) before share of income (loss) in equity method investments, net of income taxes 2,556,184 (80,817) 2,475,367 Share of income (loss) in equity method investments, net of income taxes 33,175 (151) 33,024 Net income (loss) 2,589,359 (80,968) 2,508,391 (1) Share-based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 For the year ended December 31, 2016: YY Live Huya 100 Education Total RMB RMB RMB RMB Net revenues Live streaming 6,235,249 791,978 - 7,027,227 Online games 634,325 - - 634,325 Membership 284,860 - - 284,860 Others 91,985 4,926 160,727 257,638 Total net revenues 7,246,419 796,904 160,727 8,204,050 Cost of revenues (1) (3,900,814) (1,094,644) (107,972) (5,103,430) Gross profit (loss) 3,345,605 (297,740) 52,755 3,100,620 Operating expenses (1) Research and development expenses (456,375) (188,334) (30,521) (675,230) Sales and marketing expenses (259,040) (68,746) (59,482) (387,268) General and administrative expenses (375,958) (71,325) (35,154) (482,437) Goodwill impairment (3,861) - (13,804) (17,665) Fair value change of contingent consideration - - - - Total operating expenses (1,095,234) (328,405) (138,961) (1,562,600) Gain on deconsolidation and disposal of subsidiaries 103,960 - - 103,960 Other income 129,504 - - 129,504 Operating income (loss) 2,483,835 (626,145) (86,206) 1,771,484 Gain on partial disposal of investments 25,061 - - 25,061 Interest expense (81,085) - - (81,085) Interest income 66,631 518 44 67,193 Foreign currency exchange losses, net 1,158 - - 1,158 Income (loss) before income tax expenses 2,495,600 (625,627) (86,162) 1,783,811 Income tax (expenses) benefits (294,529) - 14,015 (280,514) Income (loss) before share of income (loss) in equity method investments, net of income taxes 2,201,071 (625,627) (72,147) 1,503,297 Share of income (loss) in equity method investments, net of income taxes 8,390 - (111) 8,279 Net income (loss) 2,209,461 (625,627) (72,258) 1,511,576 (1) Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 For the year ended December 31, 2015: YY Live Huya 100 Education Total RMB RMB RMB RMB Net revenues Live streaming 4,183,533 356,324 - 4,539,857 Online games 771,882 - - 771,882 Membership 291,310 - - 291,310 Others 170,426 - 123,774 294,200 Total net revenues 5,417,151 356,324 123,774 5,897,249 Cost of revenues (1) (2,784,637) (668,493) (126,614) (3,579,744) Gross profit (loss) 2,632,514 (312,169) (2,840) 2,317,505 Operating expenses (1) Research and development expenses (359,598) (152,351) (36,850) (548,799) Sales and marketing expenses (229,295) (48,303) (35,272) (312,870) General and administrative expenses (233,086) (33,318) (92,070) (358,474) Goodwill impairment (128,035) - (182,089) (310,124) Fair value change of contingent consideration 107,306 - 185,165 292,471 Total operating expenses (842,708) (233,972) (161,116) (1,237,796) Other income 82,300 - - 82,300 Operating income (loss) 1,872,106 (546,141) (163,956) 1,162,009 Interest expense (97,125) - - (97,125) Interest income 137,759 - 133 137,892 Foreign currency exchange losses, net (38,099) - - (38,099) Other non-operating expenses (2,165) - - (2,165) Income (loss) before income tax expenses 1,872,476 (546,141) (163,823) 1,162,512 Income tax (expenses) benefits (193,064) - 14,737 (178,327) Income (loss) before share of income in equity method investments, net of income taxes 1,679,412 (546,141) (149,086) 984,185 Share of income in equity method investments, net of income taxes 14,120 - - 14,120 Net income (loss) 1,693,532 (546,141) (149,086) 998,305 (1) Share-based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 |
Additional information - conden
Additional information - condensed financial statements | 12 Months Ended |
Dec. 31, 2017 | |
Additional information - condensed financial statements [Abstract] | |
Additional information - condensed financial statements | 33. Additional information condensed financial statements The condensed financial statements of YY Inc. have been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04. The Company records its investments in subsidiaries and VIEs under the equity method of accounting. Such investments to subsidiaries and VIEs are presented on the balance sheet as “Interests in subsidiaries and VIEs” and the profit of the subsidiaries and VIEs is presented as “Share of profit of subsidiaries and VIEs” in the statement of comprehensive income. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these financial statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As of December 31, 2016 and 2017, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those, if any, which have been separately disclosed in the consolidated financial statements. (a) Condensed balance sheets of YY Inc. as of December 31, 2016 and 2017 As of December 31, 2016 2017 2017 RMB RMB US$ (Note 2(e)) Assets Current assets Amounts due from a subsidiary 1,947,080 2,671,590 410,616 Non-current assets Interests in subsidiaries and VIEs 5,883,684 8,535,113 1,311,823 Total assets 7,830,764 11,206,703 1,722,439 Liabilities and shareholders’ equity Current liabilities Interests payable 15,800 777 119 Convertible bonds 2,768,469 - - Short-term loans - 588,235 90,410 Total current liabilities 2,784,269 589,012 90,529 Non-current liabilities Convertible bonds - 6,536 1,005 Total liabilities 2,784,269 595,548 91,534 Shareholders’ equity Class A common shares (US$0.00001 par value; 10,000,000,000 shares authorized, 750,115,028 shares issued and outstanding as of December 31, 2016 and 945,245,908 shares issued and outstanding as of December 31, 2017) 44 57 9 Class B common shares (US$0.00001 par value; 1,000,000,000 shares authorized, 359,557,976 shares issued and outstanding as of December 31, 2016 and 317,982,976 shares issued and outstanding as of December 31, 2017) 26 23 4 Additional paid-in capital 2,165,766 5,339,844 820,719 Retained earnings 2,787,593 5,280,828 811,648 Accumulated other comprehensive income (loss) 93,066 (9,597) (1,475) Total shareholders’ equity 5,046,495 10,611,155 1,630,905 Total liabilities and shareholders’ equity 7,830,764 11,206,703 1,722,439 (b) Condensed statements of comprehensive income of YY Inc. for the years ended December 31, 2015, 2016 and 2017 For the year ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Note2(e)) Share of profit of subsidiaries and VIEs 1,108,029 1,605,003 2,525,357 388,140 Interest expense (74,786) (81,085) (32,122) (4,937) Net income 1,033,243 1,523,918 2,493,235 383,203 Other comprehensive income (loss) : Unrealized gain (loss) of available-for-sale securities - 134,768 (41,150) (6,325) Foreign currency translation adjustments, net of nil tax 4,414 (5,317) (61,513) (9,454) Total comprehensive income 1,037,657 1,653,369 2,390,572 367,424 (c) Condensed statements of cash flows of YY Inc. for the years ended December 31, 2015, 2016 and 2017 For the year ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Note2(e)) Cash flows from operating activities - - - - Cash flows from investing activities Repayment of loans from a subsidiary - - 2,132,512 327,761 Loans to a subsidiary - - (2,950,607) (453,500) Net cash used in investing activities - - (818,095) (125,739) Cash flows from financing activities Proceeds from bank borrowings - - 621,118 95,464 Proceeds from issuance of common shares, net of issuance cost - - 2,950,607 453,500 Repayment of convertible bonds - - (2,753,630) (423,225) Net cash provided by financing activities - - 818,095 125,739 Net increase in cash and cash equivalents - - - - Cash and cash equivalents at the beginning of the year - - - - Cash and cash equivalents at the end of the year - - - - |
Principal accounting policies (
Principal accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Principal accounting policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. |
Consolidation | (b) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIEs economic performance, and also the Company’s obligation to absorb losses of the VIEs that could potentially be significant to the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Beijing Huanju Shidai, Bilin Changxiang, Huya Technology and ultimately the Company hold all the variable interests of the VIEs and have been determined to be the primary beneficiary of the VIEs. The Company deconsolidates its subsidiaries in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. The Company accounts for the deconsolidation of its subsidiaries by recognizing a gain or loss in net income/loss attributable to the Company in accordance with ASC 810. This gain or loss is measured at the date the subsidiaries are deconsolidated as the difference between (a) the aggregate of the fair value of any consideration received, the fair value of any retained non-controlling interest in the subsidiaries being deconsolidated, and the carrying amount of any non-controlling interest in the subsidiaries being deconsolidated, including any accumulated other comprehensive income/loss attributable to the non-controlling interest, and (b) the carrying amount of the assets and liabilities of the subsidiaries being deconsolidated. |
Use of estimates | (c) Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, mezzanine equity and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period in the consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the user relationship period related to online games revenue, assessment of whether the Group acts as a principal or an agent in different revenue streams, classification of perpetual items versus consumable items under item-based model, the determination of estimated selling prices of multiple element revenue contracts, income taxes, allowances for doubtful accounts, determination of share-based compensation expenses, impairment assessment of goodwill, long-lived assets and intangible assets, tax considerations for earnings retained in the Group’s VIEs, assessment on the probability of performance condition affiliated in equity-classified award under ASC 718 that affect vesting, represent critical accounting policies that reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Foreign currency translation | (d) Foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, British Virgin Islands, and Hong Kong is United States dollar (“US$”), while the functional currency of the other entities and VIEs in the Group is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the statement of comprehensive income. Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains/losses, net in the consolidated statement of comprehensive income. |
Convenience translation | (e) Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB 6.5063 |
Cash and cash equivalents | (f) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. |
Short-term deposits | (g) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities of less than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. |
Short-term investments | (h) Short-term investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts receivable | (i) Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on an individual basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. |
Equity investment | (j) Equity investment The equity investment is comprised of investments in privately-held entities. The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately-held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. |
Cost investment | (k) Cost investment The cost investment is comprised of investments in privately-held entities. The Group accounts for cost investment which has no readily determinable fair value using the cost method. Under the cost method, the investment is measured initially at cost. The investment carried at cost should recognize income when dividends are received from the distribution of the investee’s earnings. The Group periodically evaluates the carrying value of investments accounted for under the cost method of accounting and any impairment is included in the consolidated statements of comprehensive income. |
Available-for-sale investment | (l) Available-for-sale investment The Group classifies its investments in debt and equity securities into one of three categories and accounts for these as follows: (i) debt securities that the Group has the positive intent and the ability to hold to maturity are classified as “held to maturity” and reported at amortized cost; (ii) debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as “trading securities” with unrealized holding gains and losses included in earnings; (iii) debt and equity securities not classified as held to maturity or as trading securities are classified as “available-for-sale” and reported at fair value. The Group has designated its investments in redeemable preferred shares of two private |
Property and equipment | (m) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Residual Buildings 40 years 0 % Servers, computers and equipment 3 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Decoration of buildings 10 years 0 % Motor vehicles 4 years 5 % Furniture, fixture and office equipment 5 years 0%-5 % Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income. All direct and indirect costs that are related to the construction of property and equipment and incurred before the assets are ready for their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment items and depreciation of these assets commences when they are ready for their intended use. |
Business combinations | (n) Business combinations Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. |
Intangible assets | (o) Intangible assets Intangible assets mainly consist of brand names, operating rights, software, domain names and technology. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Estimated useful lives Brand names 1-15 years Operating rights Shorter of the economic life or contract terms Software 3 -5 years Domain names 15 years Technology 5 years Others 3-5 years |
Land use right | (p) Land use right Land use right is carried at cost less accumulated amortization. Amortization of the land use right is made on straight-line basis over 40 |
Impairment of long-lived assets | (q) Impairment of long-lived assets For long-lived assets other than investments and goodwill whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Group tests impairment of long-lived assets at the reporting unit level when impairment indicator appeared and recognizes impairment in the event that the carrying value exceeds the fair value of each reporting unit. The impairment charges of intangible assets recorded in general and administrative expenses for the years ended December 31, 2015, 2016 and 2017 were amounting to RMB 57,199 3,828 |
Goodwill | (r) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. |
Annual test for impairment of goodwill | (s) Annual test for impairment of goodwill Goodwill assessment for impairment is performed on at least an annual basis on October 1 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Group performs a two-step goodwill impairment test. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of each reporting unit. |
Convertible bonds | (t) Convertible bonds The Group determines the appropriate accounting treatment of its convertible bonds in accordance with the terms in relation to the conversion feature, call and put options, and beneficial conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense, using the effective interest method, from the issuance date to the earliest conversion date. Interest expenses are recognized in the statement of comprehensive income in the period in which they are incurred. |
Mezzanine equity and non-controlling interest | (u) Mezzanine equity and non-controlling interest Mezzanine equity For the Company’s majority-owned subsidiaries and consolidated VIEs, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. When the non-controlling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the non-controlling interest is classified as mezzanine equity. In accordance with ASC subtopic 480-10, the Group calculated, on an accumulative basis from the acquisition date, (i) the amount of accretion that would increase the balance of non-controlling interests to their estimated redemption value over the period from the date of acquisition to the earliest redemption date of the non-controlling interests and (ii) the amount of net (loss) profit attributable to non-controlling shareholders of certain subsidiaries based on their ownership percentage. The carrying value of the non-controlling interests as mezzanine equity was adjusted by an accumulative amount equal to the higher of (i) and (ii). Each type of increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. Non-controlling interest Non-controlling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholder. |
Revenue recognition | (v) Revenue recognition The Group generates revenues from live streaming, online games, membership and others. Revenues from live streaming are generated from YY Live platform and Huya platform. Revenues from online games are generated from providing online game platform and access of the games for the game players. Membership subscription program enhanced user privileges when using the Group’s platforms. Other revenues mainly include online education revenue and advertising revenue. Online education services consist of vocational training and language training courses. Online advertising revenues are primarily generated from sales of different forms of advertising on the Group’s platforms. Revenue is recognized when persuasive evidence of an arrangement exists, service has been rendered, the price is fixed or determinable and collection is reasonably assured. The Group has a recharge system for users to purchase the Group's virtual currency. Users can recharge via various online payment platforms provided by third parties. Virtual currency is non-refundable and often consumed soon after it is purchased. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below unless otherwise stated. (i) Live streaming Live streaming mainly consists of YY Live platform and Huya platform. It generates revenue from sales of virtual items in the platforms. Users can access the platforms and view the live streaming content for free. The Group designs, creates and offers various virtual items for sales to users with pre-determined selling price. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to performers to show support for their favorite performers, or purchase time-based virtual items for one or multiple months for a monthly fee, which provide users with recognized status, such as priority speaking rights or special symbols over a period of time. Accordingly, live streaming revenue is recognized immediately when the consumable virtual item is used, or in the case of time-based virtual items, revenue is recognized ratably over the fixed period on a straight-line basis. The Group does not have further obligations to the user after the virtual items are consumed immediately or after the stated period of time for time-based items. Virtual items may be sold individually or bundled into one arrangement. When the Group’s users purchase multiple virtual items bundled within the same arrangement, the Group evaluates such arrangements under ASC 605-25 Multiple-Element Arrangements. The Group identifies individual elements under the arrangement and determines if such elements meet the criteria to be accounted for as separate units of accounting. The Group allocates the arrangement consideration to the separate units of accounting based on their relative selling price. The following hierarchy has been followed when determining the relative selling price for each element: (1) vendor specific objective evidence (“VSOE”), (2) third party evidence (“TPE”), and (3) best estimate of selling price (“BESP”). Given that the VSOE of the selling price cannot be determined, the Group has adopted a policy to allocate the consideration of the whole arrangement to different virtual item elements based on the TPE of selling price or the BESP for each virtual item element. The Group determines the fair values of elements sold in a bundle based on similar products sold separately on the YY Live platform and Huya platform based on the TPE of the selling price and determines the fair values of elements without similar products sold separately on the YY Live platform and Huya platform based on the BESP. The BESP is generally based on the selling prices of the various elements of a similar nature when they are sold to users on a stand-alone basis. The BESP may also be based on an estimated stand-alone pricing when the element has not previously been sold on a stand-alone basis. (ii) Online games revenue The Group generates revenues from offering virtual items in online games developed by third parties or the Group itself to gaming players. Historically, the majority of online games revenues for the three years ended December 31, 2015, 2016 and 2017 were derived from third parties developed games. Users play games through the Group’s platform free of charge and are charged for purchases of virtual items including consumable and perpetual items, which can be utilized in the online games to enhance their game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online games. The Group recognizes revenue when recognition criteria defined under U.S. GAAP are satisfied. For purposes of determining when the service has been provided to the paying player, the Group has determined that an implied obligation exists to the paying player to continue providing access to the games such that the users can utilize the virtual items purchased. Game players need to log on and access the games through the Group’s platform because their game tokens, virtual items, and game history are specific to the Group’s game accounts and non-transferable to other platforms. To purchase in-game virtual items, players can either charge their game accounts by purchasing game tokens or virtual currency from the Group’s platform, which is convertible into game tokens based on a predetermined exchange rate agreed among the Group and the relevant game developers. The proceeds from the sales of the Group’s virtual currency is recorded as “Advances from customers”, representing prepayments received from users in the form of the Group’s virtual currency not yet converted into game specific tokens. Upon the conversion into a game token from the Group’s virtual currency or upon the direct purchase of a game token, whichever is applicable, the proceeds will be shared between the Group and the relevant game developer based on a predetermined contractual ratio. Game tokens are non-refundable and non-exchangeable among different games. The Group’s portion, net of the game developer’s entitled consideration, is recorded as deferred revenue and amortized according to the prescribed revenue recognition policies described below. Users typically do not convert the virtual currency into game tokens or purchase the game tokens unless they plan to purchase in-game virtual items soon. There are two types of third party developed online games: - Non-exclusive third party developed games - Exclusive third party developed games Under the non-exclusive arrangement, game developers license the games to various platforms and the Group is only one of the platforms. Game developers will receive only revenue shared from the Group pursuant to the mutually agreed sharing percentage. Under the exclusive arrangement, game developers only license the game to the Group as the exclusive licensee. The Group can sub-license the games to other platforms and receive a portion of revenue sharing from sub-licensees. In addition to the revenue shared to the game developers, the Group should also pay an exclusive license fee to the game developers. - Non-exclusive third party developed games Pursuant to contracts signed between the Group and the respective game developers, revenues from the sale or conversion of game tokens for the purchase of in-game virtual items from online games developed by third parties are shared between the Group and the game developers based on a pre-agreed ratio for each game. These revenue-sharing contracts typically last for one to two years. The third party developed games under non-exclusive licensing contracts are maintained and updated by the game developers. The Group views the game developers to be the Group’s customers and considers the Group’s responsibilities under the agreements with the game developers to offer certain standard promotions that include providing access to the platform, announcing the new games to users on the platform, and occasional advertising on the Group’s platforms. The determination of whether to record these revenues using gross or net method is based on an assessment of various factors. The primary factors are whether the Group is acting as the principal in offering services to the game players or as agent in the transaction, and the specific requirement of each contract. The Group determined that for third party developed games, the third party game developers are the principals given the game developers design and develop the online game services offered, have reasonable latitude to establish prices of game tokens, and are responsible for maintaining and upgrading the game contents and virtual items. Accordingly, the Group records online games revenue, net of the pre-agreed portion of sharing of the revenues with the game developers. Given that third party developed games under non-exclusive licensing contracts are managed and administered by the third party game developers, the Group does not have access to the data on the consumption details such as when the game token is spent on the virtual items or the types of virtual items (consumable or perpetual items) purchased by each individual game player. However, the Group maintains historical data on timing of the conversion of its virtual currency into game specific tokens and the amount of purchases of game tokens. The Group believes that its performance for, and obligation to, the game developers correspond to the game developers’ services to the users. The Group has adopted a policy to recognize revenues relating to game tokens for third party developed games over the estimated user relationship period with the Group on a game-by-game basis, which is approximately one to six months for the periods presented. Future usage patterns may differ from historical usage patterns and therefore the estimated user relationship period with the Group may change in the future. When the Group launches a new game, it estimates the user relationship period based on other similar types of games in the market until the new game establishes its own history. The Group considers the game’s profile, attributes, target audience, and its appeal to players of different demographics groups in estimating the user relationship period. The estimated user relationship period is based on data collected from those users who have acquired game tokens. To estimate the user relationship period, the Group maintains a system that captures the following information for each user: (a) the frequency that users log into each game via the Group’s platform, and (b) the amount and the timing of when the users convert or charge his or her game tokens. The Group estimates the user relationship period for a particular game to be the date a player purchases or converts from virtual currency to a game token through the date the Group estimates the user plays the game for the last time. This computation is performed on a user by user basis. Then, the results for all analyzed users are averaged to determine an estimated end user relationship period for each game. Revenues from in-game payments of each month are recognized over the user relationship period estimated for that game. The consideration of user relationship period with each online game is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. The Group assesses the estimated user relationship period for each game on a quarterly basis. Any adjustments arising from changes in the user relationship period as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections. - Exclusive third party developed games Under certain exclusive arrangements, the Group pays additional license fees to the game developers as the Group is entitled to an exclusive right to operate third party developed games in specified geographic areas. Based on ASC 350, the Group has adopted an accounting policy to recognize the exclusive license fee as an intangible asset upon the commercial launch of the related online games. This intangible asset is amortized on a straight-line basis over the shorter of the economic life or license period of the relevant online game. Pursuant to the exclusive licensing contracts signed between the Group and the third party game developers, the Group’s responsibilities in operating the licensed games vary for each game. The determination of whether to record these revenues using gross or net method is based on an assessment of various factors, including but not limited to whether the Group (i) is the primary obligor in the arrangement; (ii) has latitude in establishing the selling price; (iii) changes the product or performs part of the service, (iv) has involvement in the determination of product and service specifications. For the game license arrangements under which the Group takes primary responsibilities of game operation, including determining distribution and payment channels, providing customer services, hosting game servers, if needed, and controlling game and services specifications and pricing, the Group considered itself to be the principal in these arrangements. Accordingly, the Group records online games revenues from these third party licensed games on a gross basis. Commission fees paid to distribution channels and payment channels and content fees paid to third party game developers are recorded as cost of revenues. For the game license arrangements under which the Group’s responsibilities are limited to publishing, providing payment solutions and game operating advice, the Group views the game developers to be its customers and considers itself to be the agent in the arrangements. Accordingly, the Group records online games revenues from these third party licensed games, net of fees paid to third parties upon the provision of service. Pursuant to the terms and conditions of certain online game exclusive license agreements entered into between game developers and the Group, the Group, as the exclusive licensee, could sublicense a non-exclusive, non-transferable and limited license to any third party without the prior formal consent of game developers. Under the non-exclusive and non-transferable limited license, the sub-licensee cannot further license the game to other platforms. The Group received monthly revenue-based royalty payments from all sub-licensees. The Group views the third-party sub-licensees operators as its customers and recognizes revenues on a net basis, as the Group does not have the primary responsibility for fulfillment and acceptability of the game services. Similar to other online games, the exclusive third party developed games are free to play and players can pay for virtual items for better in-game experience. For exclusive third party games, the consumption details can be provided by third party developers or the Group has access to such data. Therefore, the Group recognizes revenues based on item-based model: (1) for consumable items, the revenue is recognized immediately upon consumption; (2) for perpetual items, the revenue is recognized ratably over the user relationship period of a specific game as described. The determination of user relationship period is the same as what is described in “ Non-exclusive third party developed games - Self-developed games Revenues derived from self-developed games are recorded on a gross basis as the Group acts as a principal to fulfill all obligations. Considering that revenues derived from self-developed games were immaterial to the Group for the years presented, the Group does not maintain information on consumption details of in-game virtual items, and only maintains limited information related to the frequency of log-ons for its self-developed games. Given that certain historical data is not available, the Group uses the user relationship period of third party games with similar popularity, gaming experience and sales to determine the estimated period of user relationship for its self-developed games. (iii) Membership The Group operates a membership subscription program where subscription members can have enhanced user privileges when using YY Client and live streaming channels. The membership fee is collected up-front from subscribers. The receipt of the revenue is initially recorded as deferred revenue and revenue is recognized ratably over the period of the subscription when services are rendered. Unrecognized portion beyond 12 months from balance sheet date is classified as long-term deferred revenue. (iv) Others Other revenues mainly include online education revenues and advertising revenues. (1) Online education revenues Educational programs and services consist of vocational training and language training courses. The course fee is generally paid in advance and is initially recorded as deferred revenue. Revenue for regular courses is recognized proportionately as the classes are attended, and is reported net of scholarships and course fee refunds. Students are entitled to one trial class of the purchased course and course fee is fully refundable if a student decides not to take the remaining course after the trial class. No refund will be provided to a student who withdraws from a course after the trial period, and revenue is recognized for the amount collected. Course fee refunds were insignificant over the period presented. In addition to regular courses, the Company also provides a package of several regular courses to students, which has individual fair value in the market. Pursuant to the applicable accounting guidance, the Company has accounted for these course packages as a multiple-element arrangement because each individual course qualifies as a single unit of accounting, and allocated the course fee from the course package to each individual course in the package based on its relative fair value. The Company recognizes revenue equal to the fair value allocated to individual courses proportionately as the classes are attended. Students are granted a right to retake the courses at a substantial discount in the circumstances where the students fail to achieve certain score targets for some specific courses. The discount arrangement has a stand-alone value and qualifies as a separate unit of accounting under U.S. GAAP. Therefore, the Company has accounted for those courses as a multiple-element arrangement and allocated a portion of the initial course fee to the substantial discount based on a breakage rate. The breakage rate is determined based on our historical data. The amount allocated to the substantial discount is deferred and recognized as revenue upon the expiration of the retaking right, which is generally six months after the end of the initial course term. The Company also sells pre-paid cards primarily to distributors. Pre-paid card sales represent prepaid service fees received from students for online courses. The prepaid service fee is recorded as deferred revenue upon receiving the upfront cash payment. Revenue is recognized on a gross basis based on the selling price of the distributors to the students and is recognized over the period the online course is available to the students, which generally is from the enrolment date to the completion of the relevant professional examination date. (2) Advertising revenues The Group primarily generate advertising revenues from sales of various forms of advertising and provision of promotion campaigns on the live streaming platforms by way of advertisement display or integrated promotion activities in shows and programs on the live streaming platforms. Advertisements on the Group’s platforms are generally charged on the basis of duration, and advertising contracts are signed to establish the fixed price and the advertising services to be provided. Where collectability is reasonably assured, advertising revenues from advertising contracts are recognized ratably over the contract period of display. For the years ended December 31, 2015, 2016 and 2017, net revenue generated from advertising was RMB 62,740 41,685 112,778 The Group enters into advertising contracts directly with advertisers or third party advertising agencies that represent advertisers. Contract terms generally range from 1 3 3 Where customers purchase multiple advertising spaces with different display periods in the same contract, the Group allocates the total consideration to the various advertising elements based on the relative selling price method and recognizes revenue for the different elements over their respective display periods. The following hierarchy should be followed when determining the appropriate selling price for each element: (1) vendor specific objective evidence (“VSOE”), (2) third party evidence (“TPE”), and (3) best estimate of selling price (“BESP”). Given that the VSOE or TPE of the selling price cannot be determined, the Group has adopted a policy to allocate the fair values of different advertising elements based on the best estimate selling prices of each advertisement within the contract taking into consideration the standard price list and historical discounts granted. The Group recognizes revenue on the elements delivered and defers the recognition of revenue for the fair value of the undelivered elements until the remaining obligations have been satisfied. Where all of the elements within an arrangement are delivered uniformly over the agreement period, the revenues are recognized on a straight-line basis over the contract period. Transactions with third party advertising agencies For contracts entered into with third party advertising agencies, the third party advertising agencies will in turn sell the advertising services to advertisers. Revenue is recognized ratably over the contract period of display based on the following criteria: • There is persuasive evidence that an arrangement existsthe Group will enter into framework and execution agreements with the advertising agencies, specifying price, advertising content, format and timing. • Price is fixed or determinableprice charged to the advertising agencies are specified in the agreements, including relevant discount and rebate rates. • Services are renderedthe Group recognizes revenue ratably as the element are delivered over the contract period of display. • Collectability is reasonably assuredthe Group assesses credit history of each advertising agency before entering into any framework and execution agreements. If the collectability from the agencies is assessed as not reasonably assured, the Group recognizes revenue only when the cash is received and all the other revenue criteria are met. The Group provides sales incentives in the forms of discounts and rebates to third party advertising agencies based on purchase volume. As the advertising agencies are viewed as the customers in these transactions, revenue is recognized based on the price charged to the agencies, net of sales incentives provided to the agencies. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience. Transactions with advertisers The Group also enters into advertisement contracts directly with advertisers. Similar to transactions with third party advertising agencies, the Group recognizes revenue ratably as the elements are delivered over the contract period of display. The terms and conditions, including price, are fixed according to the contract between the Group and the advertisers. The Group also performs a credit assessment of all advertisers prior to entering into contracts. Revenue is recognized based on the amount charged to the advertisers, net of discounts. |
Advances from customers and deferred revenue | (w) Advances from customers and deferred revenue Advances from customers primarily consist of prepayments from users in the form of the Group’s virtual currency that are not yet consumed or converted into game tokens, and upon the consumption or conversion, are recognized as revenue according to the prescribed revenue recognition policies described above. Deferred revenue primarily consists of the unamortized game tokens, prepaid subscriptions under the membership program and unamortized revenue from virtual items in various channels in the Group’s platforms, where there is still an implied obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met. |
Cost of revenues | (x) Cost of revenues Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of (i) revenue sharing fees and content costs, including payments to various channel owners and performers, and content providers, (ii) bandwidth costs, (iii) salary and welfare, (iv) depreciation and amortization expense for servers, other equipment and intangibles directly related to operating the platform, (v) payment handling cost, (vi) Other taxes and surcharges, (vii) share-based compensation, and (viii) other costs. The Group was subject to cultural development fee at a tax rate of 3 12 The Group reported other taxes and surcharges, and cultural development fees in cost of revenues. Based on the Group’s corporate structure and the contractual arrangements among the Group’s PRC subsidiaries, the Group’s VIEs and their shareholders, the Group is effectively subject to 6 17 |
Research and development expenses | (y) Research and development expenses Research and development expenses consist primarily of (i) salary and welfare for research and development personnel, (ii) share-based compensation for research and development personnel, (iii) depreciation of office premise and servers utilized by research and development personnel and (iv) rental expenses. Costs incurred during the research stage are expensed as incurred. Costs incurred in the development stage, prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The Company recognizes internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. The Company has not capitalized any costs related to internal use software during the years ended December 31, 2015, 2016 and 2017, respectively. |
Sales and marketing expenses | (z) Sales and marketing expenses Sales and marketing expenses consist primarily of (i) advertising and market promotion expenses, and (ii) salary and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to approximately RMB 253,210 298,681 621,771 |
General and administrative expenses | (aa) General and administrative expenses General and administrative expenses consist primarily of (i) share-based compensation for management and administrative personnel, (ii) salary and welfare for general and administrative personnel, and (iii) professional service fees. |
Employee social security and welfare benefits | (bb) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the accompanying statements of comprehensive income amounted to RMB 171,349 206,704 214,848 |
Share based compensation | (cc) Share based compensation The Group grants stock-based award, such as, but not limited to, share options, restricted shares, restricted share units of the Company, share option and ordinary shares of the Company’s subsidiary to eligible employees, officers, directors, and non-employee consultants. Awards granted to employees, officers, and directors are initially accounted for as equity-classified awards. The related share-based compensation expenses are measured at the grant date fair value of the award and are recognized using the graded vesting method, net of estimated forfeiture rates, over the requisite service period, which is generally the vesting period. Forfeitures are estimated at the time of grant based on historical forfeiture rates and will be revised in the subsequent periods if actual forfeitures differ from those estimates. Duowan BVI also granted share options, restricted shares and restricted share units to non-employees, which are also initially accounted for as equity-classified awards. Awards granted to non-employees are initially measured at fair value on the grant date and periodically remeasured thereafter until the earlier of the performance commitment date or the date the service is completed and recognized over the period the service is provided. Awards are remeasured at each reporting date using the fair value as at each period end until the measurement date, generally when the services are completed and share-based awards are vested. Changes in fair value between the interim reporting dates are recorded in consistent with the method used in recognizing the original compensation costs. For an award with a performance and/or service condition that affects vesting, the performance and/or service condition is not considered in determining the award’s fair value on the grant date. Performance and service conditions should be considered when the Company is estimating the quantity of awards that will vest. Compensation cost will reflect the number of awards that are expected to vest and will be adjusted to reflect those awards that do ultimately vest. The Group recognizes compensation cost for awards with performance conditions if and when the Group concludes that it is probable that the performance condition will be achieved, net of an estimate of pre-vesting forfeitures over the requisite service period. The Group reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts compensation cost based on its probability assessment, unless on certain situations, the Group may not be able to determine that it is probable that a performance condition will be satisfied until the event occurs. The Group's share-based awards mainly include share-based awards of YY as well as share options and ordinary shares of Huya, details of which are disclosed in Note 25. Fair value determination of these share-based awards is summarized as below: (1) YY's restricted share units In determining the fair value of restricted share units granted, the fair value of the underlying shares of YY on the grant dates is applied. The grant date fair value of restricted share units is based on stock price of YY in the NASDAQ Global Market. (2) Huya's share options In determining the fair value of share options granted, a binomial option-pricing model is applied. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends. (3) Huya's ordinary shares In determining the fair value of the ordinary shares of Huya granted, a combination of discounted cash flow method (“DCF”) under income approach and guideline companies method (“GCM”) under market approach is applied, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant. DCF method of the income approach involves applying appropriate weighted average cost of capital, or WACC, to discount the future cash flows forecast, based on the Group's best estimates as of the valuation date, to present value. The WACC was determined based on a consideration of the factors including risk-free rate, comparative industry risk, equity risk premium, company size and non-systematic risk factors. GCM was also adopted under the market approach to arrive at an equity valuation for Huya. GCM employs trading multiples method of selected public comparable companies including trailing and leading Enterprise Value/Revenue multiples. Based on the Group's current stage of development and the conceptual strength of the income approach, the Group assigned 50% weight to each of the income approach and the market approach for the valuation date. |
Other income | (dd) Other income Other income primarily consists of government grants which represent cash subsidies received from the PRC government by the Group entities. Government grants are originally recorded as deferred revenue when received upfront. After all of the conditions specified in the grants have been met, the grants are recognized as operating income. |
Income taxes | (ee) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in statement of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statements of comprehensive income. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended December 31, 2015, 2016 and 2017. As of December 31, 2016 and 2017, the Group did not have any significant unrecognized uncertain tax positions. |
Statutory reserves | (ff) Statutory reserves The Group’s subsidiaries and VIEs established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Group’s subsidiaries registered as wholly-owned foreign enterprises have to make appropriations from its after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”)) to reserve funds including general reserve fund, and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10 50 In addition, in accordance with the Company Laws of the PRC, the VIEs of the Company registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10 50 The use of the general reserve fund, statutory surplus fund and discretionary surplus fund are restricted to the offsetting of losses or increasing capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to staff and for the collective welfare of employees. All these reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. During the year ended December 31, 2015, 2016 and 2017, appropriations to general reserve fund and statutory surplus fund amounted to RMB 38 2,350 3,861 |
Related parties | (gg) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Dividends | (hh) Dividends Dividends are recognized when declared. No dividends on common shares were declared for the years ended December 31, 2015, 2016 and 2017, respectively. The Group does not have any present plan to pay any dividends on common shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Income per share | (ii) Income per share Basic income per share is computed on the basis of the weighted-average number of common shares outstanding during the period under measurement. Diluted income per share is based on the weighted-average number of common shares outstanding and potential common shares. Potential common shares result from the assumed exercise of outstanding share options, restricted shares and restricted share units |
Comprehensive income | (jj) Comprehensive income Comprehensive income is defined as the change in equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income is reported in the consolidated statements of comprehensive income. Accumulated other comprehensive income/loss of the Group includes the unrealized gain of available-for-sale securities and the foreign currency translation adjustments. |
Segment reporting | (kk) Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. |
Recently issued accounting pronouncements | (ll) Recently issued accounting pronouncements In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. Additionally, the new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company has applied this guidance retrospectively to all period presented. Following the adoption of this guidance in 2017, RMB 107,309 In March 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”): Compensation Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows; (d) accounting for forfeitures of share-based payments. This standard has been effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of this standard has no material impact on the Group's consolidated financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 will eliminate transaction-specific and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenues based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14, which defers by one year ASU 2014-09’s effective date. The amendment will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Early adoption is permitted only for annual and interim periods beginning after December 15, 2016. In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard (ASC 606). The amendments in this update clarify the implementation guidance on principal versus agent considerations. When another party, along with the reporting entity, is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (as a principal) or to arrange for the good or service to be provided to the customer by the other party (as an agent). The guidance is effective for interim and annual periods beginning after December 15, 2017. The Company has set up an implementation team to analyze each of the Group’s revenue streams including revenues from live streaming, online games, membership and other revenue streams in accordance with the new revenue standard to determine the impact on the Company’s consolidated financial statements. The Company has completed the evaluation and assessment of its adoption of ASC 606 and there are no significant implementation matters yet to be addressed. Based on the Company’s assessment, the adoption of the new revenue standard will not have a material impact on the Group’s consolidated financial statements. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company will apply the new revenue standard from January 1, 2018 on a modified retrospective basis. In January 2016, the FASB issued ASU 2016-01: Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this Update make targeted improvements to generally accepted accounting principles (GAAP) as follows: 1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. 2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. 3) Eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities. 4) Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. 5) Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 6) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. 7) Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. 8) Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the new standard beginning January 1, 2018 and recognize the changes in fair value for all equity investments measured at fair value through net income (loss). For investments in equity securities lacking of readily determinable fair values, the Company will elect to use the measurement alternative defined as cost, less impairments, adjusted by observable price changes. The Company anticipates that the adoption of ASU 2016-01 will increase the volatility of its other income (expense), net, as a result of the remeasurement of its equity securities upon the occurrence of observable price changes and impairments. Following the adoption of this guidance in 2018, RMB 87,802 In February 2016, the FASB issued ASU 2016-02: Leases (Topic 842). The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statements, and, therefore, recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of the standard on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13: Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is in the process of evaluating the impact of the standard on its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15: Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments, which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Based on the Company’s assessment, the adoption of the new standard will not have a material impact on the Group’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This standard will require entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of transfer. This standard requires a modified retrospective approach to adoption. ASU 2016-16 is effective for fiscal years and interim periods within those years beginning after December 31, 2018. The Company does not expect ASU 2016-16 to have a material impact to the Company’s consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied using a retrospective transition method to each period presented. Based on the Company’s assessment, the adoption of the new standard will not have a material impact on the Group’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The standard should be applied prospectively on or after the effective date. Based on the Company’s assessment, the adoption of the new standard will not have a material impact on the Group’s consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04: Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in the process of evaluating the impact of the standard on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "CompensationStock Compensation (Topic 718), Scope of Modification Accounting", which clarifies and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, to a change to the terms or conditions of a share-based payment award. The amendments are effective for fiscal years beginning after December 15, 2017, and interim |
Organization and principal ac43
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization and principal activities [Abstract] | |
Schedule of details of the subsidiaries, VIEs and VIE's subsidiaries | Name Place of Date of % of direct Principal activities Principal subsidiaries Duowan Entertainment Corporation (“Duowan BVI”) British Virgin Islands (“BVI”) November 6, 2007 100 % Investment holding Huanju Shidai Technology (Beijing) Co., Ltd. (“Beijing Huanju Shidai” or “Duowan Entertainment”) PRC March 19, 2008 100 % Investment holding Guangzhou Huanju Shidai Information Technology Co., Ltd. (“Guangzhou Huanju Shidai”) PRC December 2, 2010 100 % Software development Engage Capital Partners I, L.P. (“Engage L.P.”) Cayman Islands March 23, 2015 93.5 % Investment HUYA Inc. (“Huya”)(*) Cayman Islands March 30, 2017 80.7 % Investment holding Guangzhou Huya Technology Co., Ltd. (“Huya Technology”) PRC June 16, 2017 80.7 % Software development Principal VIEs Guangzhou Huaduo Network Technology Co., Ltd. (“Guangzhou Huaduo”) PRC April 11, 2005 100 % Holder of internet content provider licenses and internet value added services Zhuhai Huanju Interactive Entertainment Technology Co., Ltd. PRC May 4, 2015 100 % Software development Shanghai Yilian Equity Investment Partnership (LP) (“Shanghai Yilian”) PRC June 23, 2015 93.5 % Investment Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 80.7 % Holder of internet content provider licenses and internet value added services Guangzhou Wanhe Technology Co., Ltd. (“Guangzhou Wanhe”) PRC December 8, 2016 60 % Online advertising and software development Guangzhou Yilianyixing Investment Partnership (LP) (“Guangzhou Yilianyixing”) PRC June 28, 2017 99 % Investment |
Principal accounting policies44
Principal accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Principal accounting policies [Abstract] | |
Schedule of property and equipment estimated useful lives and residual rate | Residual Buildings 40 years 0 % Servers, computers and equipment 3 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Decoration of buildings 10 years 0 % Motor vehicles 4 years 5 % Furniture, fixture and office equipment 5 years 0%-5 % |
Schedule of amortization of finite-lived intangible assets is computed using the straight-line method over the following estimated useful lives | Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Brand names 1-15 years Operating rights Shorter of the economic life or contract terms Software 3 -5 years Domain names 15 years Technology 5 years Others 3-5 years |
Certain risks and concentrati45
Certain risks and concentration (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Certain risks and concentration [Abstract] | |
Schedule of consolidated financial information of the Group's VIEs and VIE's subsidiaries excluding the inter company items with the Group's subsidiaries included in the accompanying consolidated financial statements | December 31, 2016 2017 RMB RMB Assets Current assets Cash and cash equivalents 1,397,738 1,343,731 Short-term deposits 1,235,000 3,400,000 Restricted short-term deposits - 1,000,000 Short-term investments - 124,550 Accounts receivable, net 165,971 149,958 Inventory 2,266 315 Amounts due from related parties 135,245 9,309 Prepayments and other current assets 207,245 190,456 Total current assets 3,143,465 6,218,319 Non-current assets Deferred tax assets 93,744 113,017 Investments 496,870 582,775 Property and equipment, net 261,915 359,912 Intangible assets, net 27,241 15,504 Land use right, net 1,872,394 1,832,739 Goodwill 2,527 - Amounts due from related parties - 20,000 Other non-current assets 85,583 133,812 Total non-current assets 2,840,274 3,057,759 Total assets 5,983,739 9,276,078 Liabilities Current liabilities Accounts payable 117,917 67,817 Deferred revenue 429,883 757,244 Advances from customers 56,108 80,406 Income taxes payable 112,779 142,204 Accrued liabilities and other current liabilities 988,911 1,404,877 Amounts due to related parties 91,245 30,502 Total current liabilities 1,796,843 2,483,050 Non-current liabilities Deferred revenue 19,125 52,185 Deferred tax liabilities 4,777 8,404 Total non-current liabilities 23,902 60,589 Total liabilities 1,820,745 2,543,639 For the year ended December 31, 2015 2016 2017 RMB RMB RMB Net revenues 5,821,305 8,164,100 11,577,104 Net income 1,267,111 1,874,435 2,766,279 For the year ended December 31, 2015 2016 2017 RMB RMB RMB Net cash provided by operating activities 2,164,953 2,538,836 3,974,085 Net cash used in investing activities (2,251,207) (1,313,002) (3,571,668) Net cash provided by financing activities 704,298 8,508 66,875 618,044 1,234,342 469,292 |
Summary of the percentage of accounts receivable from collection agencies, sub-licensed platforms and advertising customers with over 10% of total accounts receivable | December 31, 2016 2017 Payment platforms B1 19 % 26 % B2 17 % 18 % B3 * 19 % * Less than 10% |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and cash equivalents [Abstract] | |
Schedule of cash and cash equivalents balance | December 31, 2016 December 31, 2017 Amount RMB Amount RMB RMB 1,536,947 1,536,947 1,627,044 1,627,044 US$ 6,171 42,796 151,529 990,388 Total 1,579,743 2,617,432 |
Short-term deposits (Tables)
Short-term deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-term deposits [Abstract] | |
Schedule of short-term deposits | December 31, 2016 December 31, 2017 Amount RMB Amount RMB RMB 1,235,000 1,235,000 3,400,000 3,400,000 US$ 362,882 2,516,519 397,816 2,600,104 Total 3,751,519 6,000,104 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts receivable, net [Abstract] | |
Schedule of accounts receivable, net | December 31, 2016 2017 RMB RMB Accounts receivable, gross 224,791 161,300 Less: allowance for doubtful receivables (55,220) (7,356) Accounts receivable, net 169,571 153,944 |
Summary of allowance for doubtful accounts | For the year ended December 31, 2015 2016 2017 RMB RMB RMB Balance at the beginning of the year (57,342) (58,791) (55,220) (Additions) reversals charged to general and administrative expenses, net (1,449) 3,571 (3,049) Write-off during the year - - 50,913 Balance at the end of the year (58,791) (55,220) (7,356) |
Prepayments and other current49
Prepayments and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Prepayments and other current assets [Abstract] | |
Schedule of prepayments and other current assets | 2016 2017 RMB RMB Prepayments and deposits to vendors and content providers 70,347 81,319 Interests receivable 17,050 78,274 Employee advances 12,245 16,697 Rental and other deposits 13,015 14,214 Receivables from disposal of subsidiaries and investments 95,166 7,986 Others 16,909 23,449 Total 224,732 221,939 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Schedule of investments | 2016 2017 RMB RMB Cost investments (i) 477,733 703,566 Equity investments (ii) 252,272 309,241 Available-for-sale securities (iii) 188,597 140,212 Total 918,602 1,153,019 (i) In 2016 and 2017, the Group acquired 90,234 301,848 (ii) In 2016 and 2017, the Group acquired minority stake of a number of privately-held entities with total consideration of RMB 107,010 21,740 (iii) In 2016, one of the Group's investees became listed on NASDAQ Global Market. As the investment has readily determinable fair value upon listing, the Group reclassified this investment as an available-for-sale security upon its listing and recorded the investment at fair value with unrealized holding gain or loss recognized in other comprehensive income under ASC 320. |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property and equipment, net [Abstract] | |
Schedule of property and equipment | 2016 2017 RMB RMB Gross carrying amount Buildings 482,333 731,640 Servers, computers and equipment 565,786 588,589 Leasehold improvements 80,812 18,651 Decoration of buildings 68,981 100,711 Motor vehicles 24,016 27,330 Furniture, fixture and office equipment 23,259 24,102 Construction in progress 5,586 44,103 Total 1,250,773 1,535,126 Less: accumulated depreciation (412,023) (518,128) Property and equipment, net 838,750 1,016,998 |
Land use right, net (Tables)
Land use right, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule Of Land Use Right | December 31, 2017 RMB Gross carrying amount 1,924,563 Less: accumulated amortization (91,824) Land use right, net 1,832,739 |
Use Rights [Member] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense 2018 48,096 2019 48,096 2020 48,096 2021 48,096 2022 48,096 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Group's intangible assets | December 31, 2016 2017 RMB RMB Gross carrying amount Operating rights 98,929 47,020 Software 30,632 34,413 Domain names 27,311 25,774 Technology 18,282 17,676 Brand names 59,034 - Others 18,300 - Total of gross carrying amount 252,488 124,883 Less: accumulated amortization Operating rights (77,659) (40,320) Software (13,110) (19,448) Domain names (8,449) (9,687) Technology (9,457) (10,695) Brand names (21,810) - Others (3,592) - Total accumulated amortization (134,077) (80,150) Less: accumulated impairment (59,485) (7,252) Intangible assets, net 58,926 37,481 |
Schedule of weighted average amortization periods of intangible assets | December 31, 2016 2017 Domain names 15 15 Technology 5 5 Software 5 4 Operating rights 1 1 Brand names Not applicable Not applicable |
Other Intangible Assets [Member] | |
Schedule of estimated amortization expenses | Amortization expense 2018 13,050 2019 8,639 2020 4,666 2021 1,838 2022 1,798 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract] | |
Schedule of goodwill | YY Live 100 Education Total RMB RMB RMB Balance as of December 31, 2015 37,452 114,186 151,638 Decrease in goodwill related to disposal (i) (19,354) (100,382) (119,736) Impairment charges (ii) (3,861) (13,804) (17,665) Foreign currency translation adjustments 63 - 63 Balance as of December 31, 2016 14,300 - 14,300 Impairment charges (ii) (2,527) - (2,527) Foreign currency translation adjustments (57) - (57) Balance as of December 31, 2017 11,716 - 11,716 (i) In June 2016, the Group disposed of 60 19,354 In December 2016, the Group disposed 33.86 100,382 (ii) The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results. In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“10 0 13,804 3,861 In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB 2,527 The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business. |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred revenue [Abstract] | |
Schedule of deferred revenue | December 31, 2016 2017 RMB RMB Deferred revenue, current Live streaming 308,545 637,346 Membership 47,532 55,035 Online games 61,589 49,065 Others 13,017 16,598 Total current deferred revenue 430,683 758,044 Deferred revenue, non-current Live streaming 12,002 45,267 Membership 6,273 6,918 Others 7,184 5,533 Total non-current deferred revenue 25,459 57,718 |
Accrued liabilities and other56
Accrued liabilities and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued liabilities and other current liabilities [Abstract] | |
Schedule of accrued liabilities and other current liabilities | December 31, 2016 2017 RMB RMB Revenue sharing fees 521,654 839,745 Salaries and welfare 200,606 220,539 Marketing and promotion expenses 68,243 109,901 Bandwidth costs 86,186 102,064 Value added taxes and other taxes payable 56,677 23,204 Deposits from content providers and suppliers 18,779 22,140 Other payable to content providers 22,725 20,849 Others 91,168 127,521 Total 1,066,038 1,465,963 |
Short-term loans (Tables)
Short-term loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Convertible bonds [Abstract] | |
Schedule of Short-term Debt | December 31, 2016 2017 RMB RMB Short-term loans - 588,235 |
Convertible bonds (Tables)
Convertible bonds (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Convertible bonds [Abstract] | |
Schedule of convertible bonds | December 31, 2016 2017 RMB RMB Convertible bonds, current 2019 Convertible Senior Notes 2,773,925 - Less: issuance cost (5,456) - 2,768,469 - Convertible bonds, non-current 2019 Convertible Senior Notes - 6,536 |
Cost of revenues (Tables)
Cost of revenues (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cost of revenues [Abstract] | |
Schedule of Cost of revenues | For the year ended December 31, 2015 2016 2017 RMB RMB RMB Revenue sharing fees and content costs 2,343,224 3,790,624 5,727,081 Bandwidth costs 570,169 651,652 695,839 Salary and welfare 198,153 232,497 237,063 Depreciation and amortization 145,135 173,048 128,639 Payment handling costs 104,849 67,474 72,953 Other taxes and surcharges 27,794 44,659 48,360 Share-based compensation 23,963 15,894 42,759 Other costs 166,457 127,582 73,708 Total 3,579,744 5,103,430 7,026,402 |
Other income (Tables)
Other income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other income [Abstract] | |
Schedule of other income | For the year ended December 31, 2015 2016 2017 RMB RMB RMB Government grants 79,541 128,550 88,873 Others 2,759 954 24,314 Total 82,300 129,504 113,187 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income tax [Abstract] | |
Schedule of the current and deferred portions of income tax expense included in the consolidated statements of operations | For the year ended December 31, 2015 2016 2017 RMB RMB RMB Current income tax expenses (203,366) (288,282) (411,892) Deferred income tax benefits (expenses) 25,039 7,768 (3,919) Income tax expense for the year (178,327) (280,514) (415,811) |
Schedule of the reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax income | The reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax income is as follows: For the year ended December 31, 2015 2016 2017 PRC Statutory income tax rate (25.0) % (25.0) % (25.0) % Effect of preferential tax rate 14.0 % 11.6 % 13.2 % Effect of tax-exempt entities (1.6) % (1.7) % (0.3) % Effect of change in tax rate 0.5 % - - Permanent differences (i) (3.8) % (1.1) % (1.8) % Change in valuation allowance (1.7) % (1.5) % (2.3) % Effect of Super Deduction available to the Group 2.3 % 2.0 % 1.8 % Effective income tax rate (15.3) % (15.7) % (14.4) % (i) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. |
Schedule of the tax effects of temporary differences that give rise to the deferred tax asset balances | December 31, 2016 2017 RMB RMB Deferred tax assets: Tax loss carried forward 66,816 74,951 Allowance for doubtful accounts receivable, accrued expense and others not currently deductible for tax purposes 65,721 62,177 Deferred revenue 57,284 97,858 Impairment of investment 7,949 12,783 Others 753 753 Valuation allowance (i) (80,712) (135,505) Total deferred tax assets, net 117,811 113,017 Deferred tax liabilities: Related to acquired intangible assets 3,281 2,406 Others 4,777 8,404 Total deferred tax liabilities, net 8,058 10,810 (i) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. |
Schedule of the net operating tax loss carry forwards | Amount RMB 2018 9,362 2019 14,323 2020 72,556 2021 69,190 2022 135,796 Total 301,227 |
Mezzanine equity (Tables)
Mezzanine equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Temporary Equity Disclosure | December 31, 2016 2017 RMB RMB Huya’s Series A Preferred Shares (i) - 509,668 Other mezzanine equity 9,272 15,329 Total 9,272 524,997 |
Temporary Equity | Huya RMB Balances as of January 1, 2017 - Issuance of Huya’s preferred shares 509,730 Accretion of redeemable convertible preferred shares to redemption value 19,842 Foreign exchange (19,904) Balance as of December 31, 2017 509,668 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | For the year ended December 31, 2017 Discount rate 25%-35% Risk-free interest rate 1.70% Volatility 50%-80% |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based compensation [Line Items] | |
Summary of the restricted share units activity | Number of Weighted Outstanding, December 31, 2014 38,806,095 1.5984 Granted 16,012,644 3.3358 Forfeited (7,312,548) 1.8920 Vested (11,222,589) 1.4374 Outstanding, December 31, 2015 36,283,602 2.3535 Granted 1,530,008 1.8618 Forfeited (4,628,202) 2.7386 Vested (12,229,688) 2.0151 Outstanding, December 31, 2016 20,955,720 2.4320 Granted 22,090,030 5.3001 Forfeited (4,007,728) 2.5561 Vested (8,163,878) 2.3227 Outstanding, December 31, 2017 30,874,144 4.4969 Expected to vest at December 31, 2017 27,320,315 4.3810 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | For the year ended 2017 Weighted average fair value per option granted 1.3798 Weighted average exercise price 2.5500 Risk-free interest rate (1) 2.25 % Expected term (in year) (2) 10 Expected volatility (3) 55 % Dividend yield (4) - (1) The risk-free interest rate of periods within the contractual life of the share option is based on the China Government Bond yield as at the valuation dates. (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) Huya has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on Huya’s expected dividend policy over the expected term of the option. |
Pre-2009 Scheme Options [Member] | |
Share-based compensation [Line Items] | |
Summary of the activities of the Pre-2009 Scheme Options for employees and non-employee | Number of Weighted Weighted Aggregate Outstanding, vested and exercisable, December 31, 2014 7,380,345 0.0061 3.52 22,959 Exercised (6,611,970) 0.0061 2.46 Outstanding, vested and exercisable, December 31, 2015 768,375 0.0067 2.99 2,395 Exercised (234,720) 0.0067 2.00 Outstanding, vested and exercisable, December 31, 2016 533,655 0.0067 1.98 1,048 Exercised (379,120) 0.0067 0.97 Outstanding, vested and exercisable, December 31, 2017 154,535 0.0067 1.00 873 |
2017 Share Incentive Plan | |
Share-based compensation [Line Items] | |
Summary of the activities of the Pre-2009 Scheme Options for employees and non-employee | Number of options Weighted Weighted As of January 1, 2017 - - - Granted 11,737,705 2.5500 10.00 Forfeited (18,000) 2.5500 As of December 31, 2017 11,719,705 2.5500 9.75 Expected to vest at December 31, 2017 10,675,362 2.5500 9.61 |
Basic and diluted net income 64
Basic and diluted net income per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Basic and diluted net income per share [Abstract] | |
Schedule of calculation of basic and diluted net income per share | For the year ended December 31, 2015 2016 2017 RMB RMB RMB Numerator: Net income attributable to the Company 1,033,243 1,523,918 2,493,235 Interest expenses of convertible notes - 81,085 20,820 Numerator for diluted income per share 1,033,243 1,605,003 2,514,055 Denominator: Denominator for basic calculationweighted average number of Class A and Class B common shares outstanding 1,125,189,978 1,127,343,312 1,186,460,144 Dilutive effect of share options 2,711,486 684,455 376,918 Dilutive effect of restricted share units 22,929,699 15,816,362 11,598,378 Dilutive effect of convertible bonds (1) - 72,267,200 18,202,301 Denominator for diluted calculation 1,150,831,163 1,216,111,329 1,216,637,741 Basic net income per Class A and Class B common share 0.92 1.35 2.10 Diluted net income per Class A and Class B common share 0.90 1.32 2.07 Basic net income per ADS* 18.37 27.04 42.03 Diluted net income per ADS* 17.96 26.40 41.33 * Each ADS represents 20 common shares. (1) The weighted average number of common shares outstanding which could potentially dilute basic earnings per share in the future related to the 2019 Convertible Senior Notes was 72,267,200 18,202,301 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions [Abstract] | |
Schedule of related parties and their relationships with the Group | Relationship with the Group Guangzhou Sunhongs Corp., Ltd. (“Guangzhou Sunhongs”) (Formerly knowed as Guangzhou Shanghang Information Technology Co., Ltd.) Significant influence exercised by a principal shareholder of the Company Bigo Inc. (“Bigo”) Cost investment with significant influence Shanghai Ansha Network Technology Co., Ltd.(“Shanghai Ansha”) Cost investment with significant influence Shanghai Rongyi Culture Development Co., Ltd.(“Shanghai Rongyi”) Cost investment with significant influence Guangzhou Chenjun Equity Investment Limited Partnership(“Guangzhou Chenjun”) Equity investment Guangzhou Kuyou Information Technology Co., Ltd.(“Guangzhou Kuyou”) Equity investment Zhuhai Daren Computer Technology Co., Ltd. (“Zhuhai Daren”) Equity investment Beijing Huanqiu Xingxue Technology Development Co., Ltd.(“Xingxue”) Equity investment Yunke Online (1) Equity investment (1) Yunke Online became the Group’s equity investment in February 2017. |
Schedule of significant related party transactions | For the year ended December 31, 2015 2016 2017 RMB RMB RMB Bandwidth service provided by Guangzhou Sunhongs 74,661 96,224 92,068 Online games revenue shared from related parties 163,912 100,078 87,414 Repayment of loans from related parties 160,000 - 35,462 Partial disposal of investments to Guangzhou Chenjun - 33,750 35,160 Loan to related parties 159,000 44,500 24,962 Payment on behalf of related parties, net of repayments (60,870) 10,699 (23,116) Partial disposal of a subsidiary to Guangzhou Chenjun - 24,394 - Purchase of operating rights from related parties 21,508 - - Others 21,153 13,573 14,987 |
Schedule of the amounts due from/to related parties | December 31, 2016 2017 RMB RMB Amounts due from related parties, current Due from Bigo 31,528 9,831 Due from Guangzhou Chenjun 58,144 - Due from Xingxue 20,000 - Due from Shanghai Rongyi 13,000 - Others 12,573 1,359 Total 135,245 11,190 Amounts due from related parties, non-current Due from Yunke Online - 20,000 Amounts due to related parties Due to Guangzhou Sunhongs 10,925 8,432 Due to Guangzhou Kuyou 30,996 7,583 Due to Shanghai Ansha - 6,178 Due to Zhuhai Daren 1,998 5,269 Due to Xingxue 42,128 50 Others 5,198 2,990 Total 91,245 30,502 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair value measurements [Abstract] | |
Summary of liabilities measured at fair value on recurring basis | As of December 31, 2016 Level 1 Level 2 Level 3 Total Items Investment - Available-for-sale securities 182,480 - 6,117 188,597 As of December 31, 2017 Level 1 Level 2 Level 3 Total Items Short-term investments 29,570 94,980 - 124,550 Investment - Available-for-sale securities 138,251 - 1,961 140,212 167,821 94,980 1,961 264,762 |
Schedule of changes in level 3 instruments | Level 3 Available-for-sale securities Fair value as at January 1, 2016 and January 1, 2017 6,117 Other than temporary impairment (6,117) Addition 2,033 Foreign currency translation adjustment (72) Fair value as at December 31, 2017 1,961 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and contingencies [Abstract] | |
Schedule of future minimum payments under non-cancellable operating leases | As of December 31, 2017, future minimum payments under non-cancellable operating leases consist of the following: Office rental RMB 2018 34,002 2019 10,030 2020 7,344 2021 and after 404 51,780 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary information by segment | For the year ended December 31, 2017: YY Live Huya Total RMB RMB RMB Net revenues Live streaming 8,601,418 2,069,536 10,670,954 Online games 511,175 32,680 543,855 Membership 189,489 8,072 197,561 Others 107,894 74,528 182,422 Total net revenues 9,409,976 2,184,816 11,594,792 Cost of revenues (1) (5,096,538) (1,929,864) (7,026,402) Gross profit 4,313,438 254,952 4,568,390 Operating expenses (1) Research and development expenses (611,726) (170,160) (781,886) Sales and marketing expenses (603,989) (87,292) (691,281) General and administrative expenses (442,646) (101,995) (544,641) Goodwill impairment (2,527) - (2,527) Total operating expenses (1,660,888) (359,447) (2,020,335) Gain on deconsolidation and disposal of subsidiaries 37,989 - 37,989 Other income 103,558 9,629 113,187 Operating income (loss) 2,794,097 (94,866) 2,699,231 Interest expense (32,122) - (32,122) Interest income 166,335 14,049 180,384 Gain on partial disposal of investments 45,861 - 45,861 Foreign currency exchange losses, net (2,176) - (2,176) Income (loss) before income tax expenses 2,971,995 (80,817) 2,891,178 Income tax expenses (415,811) - (415,811) Income (loss) before share of income (loss) in equity method investments, net of income taxes 2,556,184 (80,817) 2,475,367 Share of income (loss) in equity method investments, net of income taxes 33,175 (151) 33,024 Net income (loss) 2,589,359 (80,968) 2,508,391 (1) Share-based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 The following table presents summary information by segment: For the year ended December 31, 2016: YY Live Huya 100 Education Total RMB RMB RMB RMB Net revenues Live streaming 6,235,249 791,978 - 7,027,227 Online games 634,325 - - 634,325 Membership 284,860 - - 284,860 Others 91,985 4,926 160,727 257,638 Total net revenues 7,246,419 796,904 160,727 8,204,050 Cost of revenues (1) (3,900,814) (1,094,644) (107,972) (5,103,430) Gross profit (loss) 3,345,605 (297,740) 52,755 3,100,620 Operating expenses (1) Research and development expenses (456,375) (188,334) (30,521) (675,230) Sales and marketing expenses (259,040) (68,746) (59,482) (387,268) General and administrative expenses (375,958) (71,325) (35,154) (482,437) Goodwill impairment (3,861) - (13,804) (17,665) Fair value change of contingent consideration - - - - Total operating expenses (1,095,234) (328,405) (138,961) (1,562,600) Gain on deconsolidation and disposal of subsidiaries 103,960 - - 103,960 Other income 129,504 - - 129,504 Operating income (loss) 2,483,835 (626,145) (86,206) 1,771,484 Gain on partial disposal of investments 25,061 - - 25,061 Interest expense (81,085) - - (81,085) Interest income 66,631 518 44 67,193 Foreign currency exchange losses, net 1,158 - - 1,158 Income (loss) before income tax expenses 2,495,600 (625,627) (86,162) 1,783,811 Income tax (expenses) benefits (294,529) - 14,015 (280,514) Income (loss) before share of income (loss) in equity method investments, net of income taxes 2,201,071 (625,627) (72,147) 1,503,297 Share of income (loss) in equity method investments, net of income taxes 8,390 - (111) 8,279 Net income (loss) 2,209,461 (625,627) (72,258) 1,511,576 (1) Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 For the year ended December 31, 2015: YY Live Huya 100 Education Total RMB RMB RMB RMB Net revenues Live streaming 4,183,533 356,324 - 4,539,857 Online games 771,882 - - 771,882 Membership 291,310 - - 291,310 Others 170,426 - 123,774 294,200 Total net revenues 5,417,151 356,324 123,774 5,897,249 Cost of revenues (1) (2,784,637) (668,493) (126,614) (3,579,744) Gross profit (loss) 2,632,514 (312,169) (2,840) 2,317,505 Operating expenses (1) Research and development expenses (359,598) (152,351) (36,850) (548,799) Sales and marketing expenses (229,295) (48,303) (35,272) (312,870) General and administrative expenses (233,086) (33,318) (92,070) (358,474) Goodwill impairment (128,035) - (182,089) (310,124) Fair value change of contingent consideration 107,306 - 185,165 292,471 Total operating expenses (842,708) (233,972) (161,116) (1,237,796) Other income 82,300 - - 82,300 Operating income (loss) 1,872,106 (546,141) (163,956) 1,162,009 Interest expense (97,125) - - (97,125) Interest income 137,759 - 133 137,892 Foreign currency exchange losses, net (38,099) - - (38,099) Other non-operating expenses (2,165) - - (2,165) Income (loss) before income tax expenses 1,872,476 (546,141) (163,823) 1,162,512 Income tax (expenses) benefits (193,064) - 14,737 (178,327) Income (loss) before share of income in equity method investments, net of income taxes 1,679,412 (546,141) (149,086) 984,185 Share of income in equity method investments, net of income taxes 14,120 - - 14,120 Net income (loss) 1,693,532 (546,141) (149,086) 998,305 (1) Share-based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 |
Additional information - cond69
Additional information - condensed financial statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Additional information - condensed financial statements [Abstract] | |
Condensed balance sheets | (a) Condensed balance sheets of YY Inc. as of December 31, 2016 and 2017 As of December 31, 2016 2017 2017 RMB RMB US$ (Note 2(e)) Assets Current assets Amounts due from a subsidiary 1,947,080 2,671,590 410,616 Non-current assets Interests in subsidiaries and VIEs 5,883,684 8,535,113 1,311,823 Total assets 7,830,764 11,206,703 1,722,439 Liabilities and shareholders’ equity Current liabilities Interests payable 15,800 777 119 Convertible bonds 2,768,469 - - Short-term loans - 588,235 90,410 Total current liabilities 2,784,269 589,012 90,529 Non-current liabilities Convertible bonds - 6,536 1,005 Total liabilities 2,784,269 595,548 91,534 Shareholders’ equity Class A common shares (US$0.00001 par value; 10,000,000,000 shares authorized, 750,115,028 shares issued and outstanding as of December 31, 2016 and 945,245,908 shares issued and outstanding as of December 31, 2017) 44 57 9 Class B common shares (US$0.00001 par value; 1,000,000,000 shares authorized, 359,557,976 shares issued and outstanding as of December 31, 2016 and 317,982,976 shares issued and outstanding as of December 31, 2017) 26 23 4 Additional paid-in capital 2,165,766 5,339,844 820,719 Retained earnings 2,787,593 5,280,828 811,648 Accumulated other comprehensive income (loss) 93,066 (9,597) (1,475) Total shareholders’ equity 5,046,495 10,611,155 1,630,905 Total liabilities and shareholders’ equity 7,830,764 11,206,703 1,722,439 |
Condensed statements of operations and comprehensive income | (b) Condensed statements of comprehensive income of YY Inc. for the years ended December 31, 2015, 2016 and 2017 For the year ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Note2(e)) Share of profit of subsidiaries and VIEs 1,108,029 1,605,003 2,525,357 388,140 Interest expense (74,786) (81,085) (32,122) (4,937) Net income 1,033,243 1,523,918 2,493,235 383,203 Other comprehensive income (loss) : Unrealized gain (loss) of available-for-sale securities - 134,768 (41,150) (6,325) Foreign currency translation adjustments, net of nil tax 4,414 (5,317) (61,513) (9,454) Total comprehensive income 1,037,657 1,653,369 2,390,572 367,424 |
Condensed statements of cash flows | (c) Condensed statements of cash flows of YY Inc. for the years ended December 31, 2015, 2016 and 2017 For the year ended December 31, 2015 2016 2017 2017 RMB RMB RMB US$ (Note2(e)) Cash flows from operating activities - - - - Cash flows from investing activities Repayment of loans from a subsidiary - - 2,132,512 327,761 Loans to a subsidiary - - (2,950,607) (453,500) Net cash used in investing activities - - (818,095) (125,739) Cash flows from financing activities Proceeds from bank borrowings - - 621,118 95,464 Proceeds from issuance of common shares, net of issuance cost - - 2,950,607 453,500 Repayment of convertible bonds - - (2,753,630) (423,225) Net cash provided by financing activities - - 818,095 125,739 Net increase in cash and cash equivalents - - - - Cash and cash equivalents at the beginning of the year - - - - Cash and cash equivalents at the end of the year - - - - |
Organization and principal ac70
Organization and principal activities (Narrative) (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Organization and principal activities [Line Items] | |
Registered capital and PRC statutory reserves of the VIEs and VIE's subsidiaries | ¥ 3,213,143 |
Series B Preferred Stock [Member] | |
Organization and principal activities [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 48.30% |
Guangzhou Huya | Exclusive Business Cooperation Agreement [Member] | |
Organization and principal activities [Line Items] | |
Period of prior written notice required to terminate the agreement | 30 days |
Guangzhou Huya | Exclusive Purchase Option Agreement [Member] | |
Organization and principal activities [Line Items] | |
Period of prior written notice required to terminate the agreement | 30 days |
Guangzhou Huya | Power of Attorney [Member] | |
Organization and principal activities [Line Items] | |
Period of prior written notice required to terminate the agreement | 30 days |
Huanju Shidai Technology Beijing Company Limited [Member] | Guangzhou Huaduo [Member] | Exclusive Technology Support and Technology Services Agreement [Member] | |
Organization and principal activities [Line Items] | |
Period of prior written notice required to terminate the agreement | 30 days |
Huanju Shidai Technology Beijing Company Limited [Member] | Guangzhou Huaduo [Member] | Exclusive Business Cooperation Agreement [Member] | |
Organization and principal activities [Line Items] | |
Period of prior written notice required to terminate the agreement | 30 days |
Huanju Shidai Technology Beijing Company Limited [Member] | Guangzhou Huaduo [Member] | Exclusive Option Agreement [Member] | |
Organization and principal activities [Line Items] | |
Term of agreement | 10 years |
Organization and principal ac71
Organization and principal activities (Schedule of Details of Subsidiaries, VIEs and VIE's Subsidiary) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Zhuhai Huanju Interactive Entertainment Technology [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 100.00% |
Shanghai Yilian Equity Investment Partnership LP [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 93.50% |
Guangzhou Huya Technology Co., Ltd. [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 80.70% |
Guangzhou Wanhe Technology Company Limited [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 60.00% |
HUYA Inc [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 80.70% |
Guangzhou Huya Information Technology Company Limited [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 80.70% |
Guangzhou Yilianyixing Investment Partnership LP [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 99.00% |
Guangzhou Huaduo [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 100.00% |
Duowan Entertainment Corporation [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 100.00% |
Huanju Shidai Technology Beijing Company Limited [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 100.00% |
Guangzhou Huanju Shidai [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 100.00% |
Engage Capital Partners I LP [Member] | |
Subsidiaries, VIEs and VIE's subsidiary [Line Items] | |
% of direct or indirect economic ownership | 93.50% |
Principal accounting policies72
Principal accounting policies (Convenience Translation - Narrative) (Details) ¥ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 29, 2017 | |
Convenience translation | ||||||
Rate of translations of amounts from RMB into US$ | 6.5063 | |||||
Impairment of long-lived assets | ||||||
Impairment charges of intangible assets | ¥ 3,828 | ¥ 57,199 | ||||
Advertising Revenue | ¥ 112,778 | 41,685 | ¥ 62,740 | |||
Subsequent Event [Member] | ||||||
New accounting pronouncements and changes in accounting principles | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Reclassification From AOCI To Retained Earnings | ¥ 87,802 | |||||
Accounting Standards Update 2015-17 [Member] | ||||||
Deferred costs, noncurrent | ||||||
Deferred Tax Assets, Net, Noncurrent | ¥ 107,309 | |||||
Use Rights [Member] | ||||||
Finite-lived intangible assets, net | ||||||
Useful life of intangible assets | 40 years | 40 years |
Principal accounting policies73
Principal accounting policies (Schedule of Property and Equipment Estimated Useful Lives and Residual Rate) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 40 years |
Residual rate (as a percent) | 0.00% |
Servers, computers and equipment [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 3 years |
Servers, computers and equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 0.00% |
Servers, computers and equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 5.00% |
Leasehold improvements [Member] | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 0.00% |
Estimated useful lives | Shorter of lease term or 5 years |
Decoration of buildings [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 10 years |
Residual rate (as a percent) | 0.00% |
Motor vehicles [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 4 years |
Residual rate (as a percent) | 5.00% |
Furniture, fixture and office equipment [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, fixture and office equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 0.00% |
Furniture, fixture and office equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 5.00% |
Principal accounting policies74
Principal accounting policies (Schedule of Amortization of Finite-lived Intangible Assets is Computed Using Straight-line Method Over Following Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Brand names [Member] | Minimum [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 1 year |
Brand names [Member] | Maximum [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 15 years |
Operating rights [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | Shorter of the economic life or contract terms |
Software [Member] | Minimum [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 3 years |
Software [Member] | Maximum [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 5 years |
Domain names [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 15 years |
Technology [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 5 years |
Others [Member] | Minimum [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 3 years |
Others [Member] | Maximum [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 5 years |
Principal accounting policies75
Principal accounting policies (Revenue Recognition and Cost of Revenues - Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue recognition [Line Items] | |||
Initial course term | 6 months | ||
Cost of revenues | |||
Tax rate on service income from provision of advertising services in the PRC (as a percent) | 3.00% | ||
Surcharges on business taxes and VAT (as a percent) | 12.00% | 12.00% | 12.00% |
Minimum [Member] | |||
Cost of revenues | |||
VAT (as a percent) | 6.00% | ||
Maximum [Member] | |||
Cost of revenues | |||
VAT (as a percent) | 17.00% | ||
Advertising revenues [Member] | Minimum [Member] | |||
Revenue recognition [Line Items] | |||
Advertising revenues contract term | 1 month | ||
Advertising revenues [Member] | Maximum [Member] | |||
Revenue recognition [Line Items] | |||
Advertising revenues contract term | 3 months | ||
Period over which payments are due | 3 months | ||
Third Party Developed Online Games [Member] | Minimum [Member] | |||
Revenue recognition [Line Items] | |||
Period of revenue-sharing contracts | 1 year | ||
Estimated user relationship period | 1 month | ||
Third Party Developed Online Games [Member] | Maximum [Member] | |||
Revenue recognition [Line Items] | |||
Period of revenue-sharing contracts | 2 years | ||
Estimated user relationship period | 6 months |
Principal accounting policies76
Principal accounting policies (Sales and Marketing Expenses, Share based Compensation, Statutory Reserves, Dividends and Segment Reporting - Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory reserves [Line Item] | |||
Advertising and market promotion expenses | ¥ 621,771 | ¥ 298,681 | ¥ 253,210 |
Employee social security and welfare benefits | ¥ 214,848 | 206,704 | 171,349 |
Minimum percentage appropriation to general reserve fund required | 10.00% | ||
Reserve level threshold for mandatory appropriation requirement (as a percent) | 50.00% | ||
Minimum percentage appropriation to statutory surplus fund required | 10.00% | ||
Surplus fund threshold for mandatory appropriation requirement (as a percent) | 50.00% | ||
Dividends | |||
Dividends declared | ¥ 0 | 0 | 0 |
Statutory reserves [Member] | |||
Statutory reserves [Line Item] | |||
Amount appropriated to statutory reserves | ¥ 3,861 | ¥ 2,350 | ¥ 38 |
Certain risks and concentrati77
Certain risks and concentration (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain risks and concentration [Line Items] | |||
Maximum foreign ownership in internet information provider or other value-added telecommunication service provider's business allowed under PRC laws and regulations | 50.00% | ||
Minimum [Member] | |||
Certain risks and concentration [Line Items] | |||
Term of contractual agreements | 10 years | ||
Maximum [Member] | |||
Certain risks and concentration [Line Items] | |||
Term of contractual agreements | 30 years | ||
Guangzhou Huaduo [Member] | |||
Certain risks and concentration [Line Items] | |||
Equity interests ownership (as a percent) | 100.00% | ||
Guangzhou Huaduo [Member] | Guangzhou Huanju Shidai and Beijing Huanju Shidai [Member] | |||
Certain risks and concentration [Line Items] | |||
Service fees | ¥ 279,828 | ¥ 305,792 | ¥ 274,285 |
Beijing Tuda and Guangzhou Huaduo [Member] | Beijing Huanju Shidai [Member] | |||
Certain risks and concentration [Line Items] | |||
Maximum percentage of the income of VIEs which may be charged as service fees | 100.00% | ||
Maximum percentage of the profits payable by VIEs | 100.00% |
Certain risks and concentrati78
Certain risks and concentration (Schedule of Consolidated Financial Information of Group's VIEs and VIE's Subsidiary Excluding Inter Company Items With Group's Subsidiaries Included in Accompanying Consolidated Financial Statements) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014CNY (¥) | |
Current assets | |||||||
Cash and cash equivalents | ¥ 2,617,432 | ¥ 1,579,743 | ¥ 928,934 | $ 402,292 | $ 242,802 | ¥ 475,028 | |
Restricted short-term deposits | 1,000,000 | 0 | 153,697 | ||||
Short-term investments | 124,550 | 0 | 19,143 | ||||
Accounts receivable, net | 153,944 | 169,571 | 23,661 | ||||
Inventory | 315 | 2,266 | 48 | ||||
Amounts due from related parties, current | 11,190 | 135,245 | 1,720 | ||||
Prepayments and other current assets | 221,939 | 224,732 | 34,111 | ||||
Total current assets | 10,129,474 | 5,863,076 | 1,556,871 | ||||
Non-current assets | |||||||
Deferred tax assets | 113,017 | 117,811 | 17,370 | ||||
Investments | 1,153,019 | 918,602 | 177,216 | ||||
Property and equipment, net | 1,016,998 | 838,750 | 156,310 | ||||
Intangible assets, net | 37,481 | 58,926 | 5,761 | ||||
Goodwill | 11,716 | 14,300 | 151,638 | 1,801 | |||
Amounts due from related parties | 20,000 | 0 | 3,074 | ||||
Other non-current assets | 144,275 | 101,933 | 22,175 | ||||
Total non-current assets | 4,329,245 | 3,922,716 | 665,394 | ||||
Total assets | 14,458,719 | 9,785,792 | 2,222,265 | ||||
Current liabilities | |||||||
Accounts payable | 76,351 | 137,107 | 11,735 | ||||
Deferred revenue | 758,044 | 430,683 | 116,509 | ||||
Advances from customers | 80,406 | 56,152 | 12,358 | ||||
Income taxes payable | 146,298 | 140,754 | 22,485 | ||||
Accrued liabilities and other current liabilities | 1,465,963 | 1,066,038 | 225,314 | ||||
Amounts due to related parties | 30,502 | 91,245 | 4,688 | ||||
Total current liabilities | 3,145,799 | 4,690,448 | 483,499 | ||||
Non-current liabilities | |||||||
Deferred revenue | 57,718 | 25,459 | 8,871 | ||||
Deferred tax liabilities | 10,810 | 8,058 | 1,661 | ||||
Total non-current liabilities | 75,064 | 33,517 | 11,537 | ||||
Total liabilities | 3,220,863 | 4,723,965 | $ 495,036 | ||||
Net income | 2,493,235 | $ 383,207 | 1,523,918 | 1,033,243 | |||
Net cash provided by operating activities | 3,718,452 | 571,517 | 2,421,135 | 1,823,442 | |||
Net cash used in investing activities | (4,037,516) | $ (620,556) | (1,783,138) | (1,048,022) | |||
Variable interest entity [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,343,731 | 1,397,738 | |||||
Short-term deposits | 3,400,000 | 1,235,000 | |||||
Restricted short-term deposits | 1,000,000 | 0 | |||||
Short-term investments | 124,550 | 0 | |||||
Accounts receivable, net | 149,958 | 165,971 | |||||
Inventory | 315 | 2,266 | |||||
Amounts due from related parties, current | 9,309 | 135,245 | |||||
Prepayments and other current assets | 190,456 | 207,245 | |||||
Total current assets | 6,218,319 | 3,143,465 | |||||
Non-current assets | |||||||
Deferred tax assets | 113,017 | 93,744 | |||||
Investments | 582,775 | 496,870 | |||||
Property and equipment, net | 359,912 | 261,915 | |||||
Intangible assets, net | 15,504 | 27,241 | |||||
Land use right, net | 1,832,739 | 1,872,394 | |||||
Goodwill | 0 | 2,527 | |||||
Amounts due from related parties | 20,000 | 0 | |||||
Other non-current assets | 133,812 | 85,583 | |||||
Total non-current assets | 3,057,759 | 2,840,274 | |||||
Total assets | 9,276,078 | 5,983,739 | |||||
Current liabilities | |||||||
Accounts payable | 67,817 | 117,917 | |||||
Deferred revenue | 757,244 | 429,883 | |||||
Advances from customers | 80,406 | 56,108 | |||||
Income taxes payable | 142,204 | 112,779 | |||||
Accrued liabilities and other current liabilities | 1,404,877 | 988,911 | |||||
Amounts due to related parties | 30,502 | 91,245 | |||||
Total current liabilities | 2,483,050 | 1,796,843 | |||||
Non-current liabilities | |||||||
Deferred revenue | 52,185 | 19,125 | |||||
Deferred tax liabilities | 8,404 | 4,777 | |||||
Total non-current liabilities | 60,589 | 23,902 | |||||
Total liabilities | 2,543,639 | 1,820,745 | |||||
Net revenues | 11,577,104 | 8,164,100 | 5,821,305 | ||||
Net income | 2,766,279 | 1,874,435 | 1,267,111 | ||||
Net cash provided by operating activities | 3,974,085 | 2,538,836 | 2,164,953 | ||||
Net cash used in investing activities | (3,571,668) | (1,313,002) | (2,251,207) | ||||
Net cash provided by financing activities | 66,875 | 8,508 | 704,298 | ||||
Net (decrease) / increase in cash and cash equivalents | ¥ 469,292 | ¥ 1,234,342 | ¥ 618,044 |
Certain Risks And Concentrati79
Certain Risks And Concentration (Summary of Percentage of Accounts Receivable from Collection Agencies and Advertising Customers With Over 10% of Total Accounts Receivable) (Details) - Accounts receivable [Member] - Credit concentration [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Collection agencies and advertising customers, B1 [Member] | |||
Concentration of risks [Line Items] | |||
Concentration percentage | 26.00% | 19.00% | |
Collection agencies and advertising customers, B2 [Member] | |||
Concentration of risks [Line Items] | |||
Concentration percentage | 18.00% | 17.00% | |
Collection agencies and advertising customers, B3 [Member] | |||
Concentration of risks [Line Items] | |||
Concentration percentage | 19.00% | [1] | |
[1] | Less than 10% |
Business combination and disp80
Business combination and disposal of subsidiaries (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Business combination [Line Items] | ||||||
Gain (Loss) on Disposition of Stock in Subsidiary | ¥ 37,989 | $ 5,839 | ¥ 103,960 | ¥ 0 | ||
Beijing Yunke Online Technology Developments Co., Ltd. [Member] | ||||||
Business combination [Line Items] | ||||||
Gain (Loss) on Disposition of Stock in Subsidiary | ¥ 37,989 | |||||
Disposal Of Equity Interest, Percentage Of Ownership Transferred | 46.00% | |||||
Sale of Stock, Percentage of Ownership after Transaction | 34.00% | |||||
Xingxue Technology Development Co., Ltd [Member] | ||||||
Business combination [Line Items] | ||||||
Equity Method Investment Disposal Percentage | 33.86% | |||||
Assets and Liabilities for Disposal of Subsidiaries | ¥ 154,999 | |||||
Proceeds from Sale of Equity Method Investments | ¥ 118,500 | |||||
Equity Method Investment, Ownership Percentage | 31.14% | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | ¥ 127,434 | |||||
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount | 57,791 | |||||
Fair value of consideration received, fair value the retained noncontrolling interest and carrying amount of noncontrolling interest | ¥ 282,433 | |||||
Beifu [Member] | ||||||
Business combination [Line Items] | ||||||
Subsidiary Divestiture Interest Percentage | 60.00% | |||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | ¥ 3,500 | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | |||||
Gain (Loss) on Disposition of Stock in Subsidiary | ¥ (23,474) | |||||
Fair Value Consideration Received | 13,236 | |||||
Assets and Liabilities for Disposal of Subsidiaries | 36,710 | |||||
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount | ¥ (3,088) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Cash and cash equivalents [Line Items] | ||||||
Cash and cash equivalents | ¥ 2,617,432 | $ 402,292 | ¥ 1,579,743 | $ 242,802 | ¥ 928,934 | ¥ 475,028 |
RMB [Member] | ||||||
Cash and cash equivalents [Line Items] | ||||||
Cash and cash equivalents | 1,627,044 | 1,536,947 | ||||
US$ [Member] | ||||||
Cash and cash equivalents [Line Items] | ||||||
Cash and cash equivalents | ¥ 990,388 | $ 151,529 | ¥ 42,796 | $ 6,171 |
Short-term deposits (Details)
Short-term deposits (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) |
Short Term Deposits [Line Items] | ||||
Short-term deposits | ¥ 6,000,104 | $ 922,199 | ¥ 3,751,519 | |
RMB [Member] | ||||
Short Term Deposits [Line Items] | ||||
Short-term deposits | 3,400,000 | 1,235,000 | ||
US$ [Member] | ||||
Short Term Deposits [Line Items] | ||||
Short-term deposits | ¥ 2,600,104 | $ 397,816 | ¥ 2,516,519 | $ 362,882 |
Restricted short-term deposits
Restricted short-term deposits (Narrative) (Details) - Dec. 31, 2017 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Restricted Cash And Investments [Line Items] | ||
Debt Instrument, Collateral Amount | ¥ | ¥ 1,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 160 |
Short-term investments (Narrati
Short-term investments (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Short-term Investments | ¥ 124,550 | $ 19,143 | ¥ 0 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Accounts Receivable Net [Line Items] | ||||||
Accounts receivable, gross | ¥ 161,300 | ¥ 224,791 | ||||
Less: allowance for doubtful receivables | ¥ (55,220) | ¥ (55,220) | ¥ (57,342) | (7,356) | (55,220) | |
Accounts receivable, net | ¥ 153,944 | $ 23,661 | ¥ 169,571 | |||
Summary of allowance for doubtful accounts | ||||||
Balance at the beginning of the year | (55,220) | (58,791) | (57,342) | |||
(Additions) reversals charged to general and administrative expenses, net | (3,049) | 3,571 | (1,449) | |||
Write-off during the year | 50,913 | 0 | 0 | |||
Balance at the end of the year | ¥ (7,356) | ¥ (55,220) | ¥ (58,791) |
Prepayments and other current86
Prepayments and other current assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Prepayments and other current assets [Line Items] | |||
Prepayments and deposits to vendors and content providers | ¥ 81,319 | ¥ 70,347 | |
Interests receivable | 78,274 | 17,050 | |
Employee advances | 16,697 | 12,245 | |
Rental and other deposits | 14,214 | 13,015 | |
Receivables from disposal of subsidiaries and investments | 7,986 | 95,166 | |
Others | 23,449 | 16,909 | |
Total | ¥ 221,939 | $ 34,111 | ¥ 224,732 |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Investments [Line Items] | ||||
Cost investments | [1] | ¥ 703,566 | ¥ 477,733 | |
Equity investments | [2] | 309,241 | 252,272 | |
Available-for-sale securities | [3] | 140,212 | 188,597 | |
Total | ¥ 1,153,019 | $ 177,216 | ¥ 918,602 | |
[1] | In 2016 and 2017, the Group acquired minority stake of a number of privately-held entities with total consideration of RMB90,234 and RMB301,848 respectively. The investments are not investment in common stock or in-substance common stock and therefore have been precluded from applying the equity method of accounting. They have been accounted for as investments under cost method, since all of these equity securities do not have a readily determinable fair value. | |||
[2] | In 2016 and 2017, the Group acquired minority stake of a number of privately-held entities with total consideration of RMB107,010 and RMB 21,740 respectively. Investments have been accounted for under the equity method where the Group has significant influence in these investments and the investments are considered as in substance ordinary shares. | |||
[3] | In 2016, one of the Group's investees became listed on NASDAQ Global Market. As the investment has readily determinable fair value upon listing, the Group reclassified this investment as an available-for-sale security upon its listing and recorded the investment at fair value with unrealized holding gain or loss recognized in other comprehensive income under ASC 320. |
Investments (Narrative) (Detail
Investments (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Consideration to acquire minority stake | ¥ 301,848 | $ 46,393 | ¥ 90,234 | ¥ 351,800 |
Equity Method Investments Original Cost | 21,740 | 107,010 | ||
Impairment charge | 43,205 | 80,104 | 6,000 | |
Sale Of Investments Consideration Received On Transaction | 57,651 | |||
Gain on Sale of Investments | ¥ 45,861 | $ 7,049 | ¥ 25,061 | ¥ 0 |
Property and equipment, net (Sc
Property and equipment, net (Schedule of Property and Equipment) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Property and equipment, net [Line Items] | |||
Gross carrying amount | ¥ 1,535,126 | ¥ 1,250,773 | |
Less: accumulated depreciation | (518,128) | (412,023) | |
Property and equipment, net | 1,016,998 | $ 156,310 | 838,750 |
Buildings [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 731,640 | 482,333 | |
Servers, computers and equipment [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 588,589 | 565,786 | |
Leasehold improvements [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 18,651 | 80,812 | |
Decoration of buildings [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 100,711 | 68,981 | |
Furniture, fixture and office equipment [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 24,102 | 23,259 | |
Motor vehicles [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | 27,330 | 24,016 | |
Construction in progress [Member] | |||
Property and equipment, net [Line Items] | |||
Gross carrying amount | ¥ 44,103 | ¥ 5,586 |
Property and equipment, net (Na
Property and equipment, net (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Depreciation expense | ¥ 176,715 | $ 27,161 | ¥ 173,625 | ¥ 122,098 |
Leasehold Improvements [Member] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | ¥ (17,620) |
Land use right, net (Schedule O
Land use right, net (Schedule Of Land Use Right) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Gross carrying amount | ¥ 124,883 | ¥ 252,488 | |
Less: accumulated amortization | (80,150) | (134,077) | |
Land use right, net | 37,481 | $ 5,761 | ¥ 58,926 |
Land use right [Member] | |||
Gross carrying amount | 1,924,563 | ||
Less: accumulated amortization | (91,824) | ||
Land use right, net | ¥ 1,832,739 |
Land use right, net (Schedule92
Land use right, net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
2,018 | ¥ 13,050 |
2,019 | 8,639 |
2,020 | 4,666 |
2,021 | 1,838 |
2,022 | 1,798 |
Use Rights [Member] | |
2,018 | 48,096 |
2,019 | 48,096 |
2,020 | 48,096 |
2,021 | 48,096 |
2,022 | ¥ 48,096 |
Land use right, net (Narrative)
Land use right, net (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Amortization of acquired intangible assets and land use right | ¥ 62,419 | $ 9,594 | ¥ 100,892 | ¥ 64,201 |
Intangible assets, net (Summary
Intangible assets, net (Summary of Group's Intangible Assets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Intangible assets, net [Line Items] | |||
Gross carrying amount | ¥ 124,883 | ¥ 252,488 | |
Less: accumulated amortization | (80,150) | (134,077) | |
Less: accumulated impairment | (7,252) | (59,485) | |
Intangible assets, net | 37,481 | $ 5,761 | 58,926 |
Operating rights [Member] | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 47,020 | 98,929 | |
Less: accumulated amortization | (40,320) | (77,659) | |
Software [Member] | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 34,413 | 30,632 | |
Less: accumulated amortization | (19,448) | (13,110) | |
Domain names [Member] | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 25,774 | 27,311 | |
Less: accumulated amortization | (9,687) | (8,449) | |
Technology [Member] | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 17,676 | 18,282 | |
Less: accumulated amortization | (10,695) | (9,457) | |
Brand names [Member] | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 0 | 59,034 | |
Less: accumulated amortization | 0 | (21,810) | |
Others [Member] | |||
Intangible assets, net [Line Items] | |||
Gross carrying amount | 0 | 18,300 | |
Less: accumulated amortization | ¥ 0 | ¥ (3,592) |
Intangible assets, net (Schedul
Intangible assets, net (Schedule of Estimated Amortization Expenses) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Amortization expense of intangible assets | |
2,018 | ¥ 13,050 |
2,019 | 8,639 |
2,020 | 4,666 |
2,021 | 1,838 |
2,022 | ¥ 1,798 |
Intangible assets, net (Sched96
Intangible assets, net (Schedule of Weighted Average Amortization Periods of Intangible Assets) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Domain names [Member] | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 15 years | 15 years |
Technology [Member] | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 5 years | 5 years |
Software [Member] | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 4 years | 5 years |
Operating rights [Member] | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 1 year | 1 year |
Intangible assets, net (Narrati
Intangible assets, net (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Amortization of acquired intangible assets and land use right | ¥ 62,419 | $ 9,594 | ¥ 100,892 | ¥ 64,201 |
Finite-Lived Intangible Assets [Member] | ||||
Amortization of acquired intangible assets and land use right | ¥ 14,510 | ¥ 56,977 | ¥ 64,201 |
Goodwill (Details)
Goodwill (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |||||
Goodwill | ||||||||
Balance at beginning of the year | ¥ 14,300 | ¥ 151,638 | ||||||
Decrease in goodwill related to disposal | [1] | (119,736) | ||||||
Impairment charges | (2,527) | [2],[3] | $ (388) | (17,665) | [3],[4] | ¥ (310,124) | [5] | |
Foreign currency translation adjustment | (57) | 63 | ||||||
Balance at end of the year | 11,716 | $ 1,801 | 14,300 | 151,638 | ||||
YY Live [Member] | ||||||||
Goodwill | ||||||||
Balance at beginning of the year | 14,300 | 37,452 | ||||||
Decrease in goodwill related to disposal | 0 | (19,354) | [1] | |||||
Impairment charges | (2,527) | [2],[3] | (3,861) | [3],[4] | (128,035) | [5] | ||
Foreign currency translation adjustment | (57) | 63 | ||||||
Balance at end of the year | 11,716 | 14,300 | 37,452 | |||||
100 Education [Member] | ||||||||
Goodwill | ||||||||
Balance at beginning of the year | 0 | 114,186 | ||||||
Decrease in goodwill related to disposal | [1] | (100,382) | ||||||
Impairment charges | 0 | [3] | (13,804) | [3],[4] | (182,089) | [5] | ||
Foreign currency translation adjustment | ||||||||
Balance at end of the year | ¥ 0 | ¥ 114,186 | ||||||
[1] | In June 2016, the Group disposed 60% equity interest of Beifu and ceased to consolidate Beifu as a subsidiary. Goodwill of RMB19,354 was derecognized in the segment of YY Live (Note 4).In December 2016, the Group disposed 33.86% equity interest of Xingxue and ceased to consolidate Xingxue as a subsidiary. Goodwill of RMB100,382 was derecognized in the segment of 100 Education upon this disposal (Note 4). | |||||||
[2] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 Share based compensation expenses 217,553 40,108 257,661 | |||||||
[3] | The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results.In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“100-Online”) as well as impairment indicator for Bilin Online. Based on the results of the impairment assessment, an impairment charge of RMB13,804 for 100-Online and an impairment charge of RMB3,861 for Bilin Online were recognized, respectively.In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB2,527 for Zhuque was recognized.The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business. | |||||||
[4] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 Share based compensation expenses 85,282 52,098 19,906 157,286 | |||||||
[5] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 Share based compensation expenses 125,092 20,481 39,799 185,372 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016 | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | [4] | ||||
Goodwill [Line Items] | |||||||||
Goodwill impairment losses | ¥ 2,527 | [1],[2] | $ 388 | ¥ 17,665 | [2],[3] | ¥ 310,124 | |||
Goodwill, Period Increase (Decrease) | [5] | ¥ (119,736) | |||||||
Xingxue Technology Development Co., Ltd [Member] | |||||||||
Goodwill [Line Items] | |||||||||
Percentage of equity interests acquired | 33.86% | ||||||||
Guangzhou Zhuque Information Technology Co Ltd [Member] | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment losses | 2,527 | ||||||||
100 Education [Member] | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment losses | 0 | [2] | ¥ 13,804 | [2],[3] | 182,089 | ||||
Goodwill, Period Increase (Decrease) | [5] | (100,382) | |||||||
YY Live [Member] | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment losses | 2,527 | [1],[2] | 3,861 | [2],[3] | ¥ 128,035 | ||||
Goodwill, Period Increase (Decrease) | 0 | (19,354) | [5] | ||||||
100 Online and DuBooker [Member] | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill, Period Increase (Decrease) | 0 | ||||||||
Beifu [Member] | |||||||||
Goodwill [Line Items] | |||||||||
Subsidiary Divestiture Interest Percentage | 60.00% | ||||||||
Bilin Online [Member] | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment losses | ¥ 0 | ¥ 3,861 | |||||||
[1] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 Share based compensation expenses 217,553 40,108 257,661 | ||||||||
[2] | The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results.In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“100-Online”) as well as impairment indicator for Bilin Online. Based on the results of the impairment assessment, an impairment charge of RMB13,804 for 100-Online and an impairment charge of RMB3,861 for Bilin Online were recognized, respectively.In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB2,527 for Zhuque was recognized.The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business. | ||||||||
[3] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 Share based compensation expenses 85,282 52,098 19,906 157,286 | ||||||||
[4] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 Share based compensation expenses 125,092 20,481 39,799 185,372 | ||||||||
[5] | In June 2016, the Group disposed 60% equity interest of Beifu and ceased to consolidate Beifu as a subsidiary. Goodwill of RMB19,354 was derecognized in the segment of YY Live (Note 4).In December 2016, the Group disposed 33.86% equity interest of Xingxue and ceased to consolidate Xingxue as a subsidiary. Goodwill of RMB100,382 was derecognized in the segment of 100 Education upon this disposal (Note 4). |
Deferred revenue (Details)
Deferred revenue (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Deferred revenue [Line Items] | |||
Deferred revenue, current | ¥ 758,044 | $ 116,509 | ¥ 430,683 |
Deferred revenue, non-current | 57,718 | $ 8,871 | 25,459 |
Live streaming [Member] | |||
Deferred revenue [Line Items] | |||
Deferred revenue, current | 637,346 | 308,545 | |
Deferred revenue, non-current | 45,267 | 12,002 | |
Membership [Member] | |||
Deferred revenue [Line Items] | |||
Deferred revenue, current | 55,035 | 47,532 | |
Deferred revenue, non-current | 6,918 | 6,273 | |
Online games [Member] | |||
Deferred revenue [Line Items] | |||
Deferred revenue, current | 49,065 | 61,589 | |
Others [Member] | |||
Deferred revenue [Line Items] | |||
Deferred revenue, current | 16,598 | 13,017 | |
Deferred revenue, non-current | ¥ 5,533 | ¥ 7,184 |
Accrued liabilities and othe101
Accrued liabilities and other current liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Revenue sharing fees | ¥ 839,745 | ¥ 521,654 | |
Salaries and welfare | 220,539 | 200,606 | |
Marketing and promotion expenses | 109,901 | 68,243 | |
Bandwidth costs | 102,064 | 86,186 | |
Value added taxes and other taxes payable | 23,204 | 56,677 | |
Deposits from content providers and suppliers | 22,140 | 18,779 | |
Other payable to content providers | 20,849 | 22,725 | |
Others | 127,521 | 91,168 | |
Total | ¥ 1,465,963 | $ 225,314 | ¥ 1,066,038 |
Short-term loans (Details)
Short-term loans (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Short-term Debt | ¥ 588,235 | $ 90,410 | ¥ 0 |
Short-term loans (Narrative) (D
Short-term loans (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 160,000 | ||
Restricted Cash and Investments, Current | ¥ 1,000,000 | 153,697 | ¥ 0 |
Debt Instrument, Collateral Amount | 1,000,000 | ||
Loans Payable [Member] | |||
Debt Instrument, Face Amount | 588,235 | 90,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 160,000 | ||
Restricted Cash and Investments, Current | 1,000 | ||
Debt Instrument, Collateral Amount | ¥ 1,000,000 | ||
Debt Instrument, Maturity Date, Description | These loans were all with a maturity of less than one year | ||
Loans Payable [Member] | Minimum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | |
Loans Payable [Member] | Maximum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% |
Convertible bonds (Details)
Convertible bonds (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Convertible bonds, current | ||||
Convertible bonds, current | ¥ 0 | $ 0 | $ 1,000 | ¥ 2,768,469 |
Convertible bonds, non-current | ||||
Convertible bonds, non-current | 6,536 | $ 1,005 | 0 | |
Short-term Debt [Member] | ||||
Convertible bonds, current | ||||
2019 Convertible Senior Notes | 0 | 2,773,925 | ||
Less: issuance cost | 0 | (5,456) | ||
Convertible bonds, current | 0 | 2,768,469 | ||
Long-term Debt [Member] | ||||
Convertible bonds, non-current | ||||
Convertible bonds, non-current | ¥ 6,536 | ¥ 0 |
Convertible bonds (Narrative) (
Convertible bonds (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 18, 2014USD ($) | |
Convertible bonds [Line Items] | ||||||||
Interest expense | ¥ 32,122 | $ 4,937 | ¥ 81,085 | ¥ 97,125 | ||||
Convertible bonds, current | ||||||||
Convertible bonds, current | 0 | 2,768,469 | $ 0 | $ 1,000 | ||||
Convertible bonds, non-current | ||||||||
Debt Instrument, Repurchased Face Amount | $ 399,000 | |||||||
Convertible bonds, non-current | 6,536 | 0 | $ 1,005 | |||||
Convertible bonds [Member] | ||||||||
Convertible bonds [Line Items] | ||||||||
Interest expense | ¥ | ¥ 20,820 | 81,085 | ||||||
2.25% Convertible Senior Notes due 2019 [Member] | ||||||||
Convertible bonds [Line Items] | ||||||||
Aggregate principle amount | $ 400,000 | |||||||
Interest rate (as a percent) | 2.25% | 2.25% | ||||||
Convertible bonds, current | ||||||||
Convertible bonds, current | ¥ 2,768,469 | $ 399,000 | ||||||
2.25% Convertible Senior Notes due 2019 [Member] | Contingent redemption option [Member] | ||||||||
Convertible bonds [Line Items] | ||||||||
Redemption period, start date | Apr. 1, 2019 | Apr. 1, 2019 |
Cost of revenues (Details)
Cost of revenues (Details) - Cost of revenues [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue sharing fees and content costs | ¥ 5,727,081 | ¥ 3,790,624 | ¥ 2,343,224 |
Bandwidth costs | 695,839 | 651,652 | 570,169 |
Salary and welfare | 237,063 | 232,497 | 198,153 |
Depreciation and amortization | 128,639 | 173,048 | 145,135 |
Payment handling costs | 72,953 | 67,474 | 104,849 |
Other taxes and surcharges | 48,360 | 44,659 | 27,794 |
Share-based compensation | 42,759 | 15,894 | 23,963 |
Other costs | 73,708 | 127,582 | 166,457 |
Total | ¥ 7,026,402 | ¥ 5,103,430 | ¥ 3,579,744 |
Other income (Details)
Other income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Government grants | ¥ 88,873 | ¥ 128,550 | ¥ 79,541 | |
Others | 24,314 | 954 | 2,759 | |
Total | ¥ 113,187 | $ 17,397 | ¥ 129,504 | ¥ 82,300 |
Income tax (Schedule of Current
Income tax (Schedule of Current and Deferred Portions of Income Tax Expense Included in Consolidated Statements of Operations) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Current and deferred portions of income tax expense | ||||
Current income tax expenses | ¥ (411,892) | ¥ (288,282) | ¥ (203,366) | |
Deferred income tax benefits (expenses) | (3,919) | $ (602) | 7,768 | 25,039 |
Income tax expense for the year | ¥ (415,811) | $ (63,909) | ¥ (280,514) | ¥ (178,327) |
Income tax (Schedule of Reconci
Income tax (Schedule of Reconciliation of Total Tax Expense Computed by Applying Respective Statutory Income Tax Rate to Pre-tax Income) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PRC Statutory income tax rate (as a percent) | (25.00%) | (25.00%) | (25.00%) |
Effect of preferential tax rate (as a percent) | 13.20% | 11.60% | 14.00% |
Effect of tax-exempt entities (as a percent) | (0.30%) | (1.70%) | (1.60%) |
Effect of change in tax rate (as a percent) | 0.00% | 0.00% | 0.50% |
Permanent differences (as a percent) | (1.80%) | (1.10%) | (3.80%) |
Change in valuation allowance (as a percent) | (2.30%) | (1.50%) | (1.70%) |
Effect of Super Deduction available to the Group (as a percent) | 1.80% | 2.00% | 2.30% |
Effective income tax rate (as a percent) | (14.40%) | (15.70%) | (15.30%) |
Income tax (Schedule of Tax Eff
Income tax (Schedule of Tax Effects of Temporary Differences that Give Rise to Deferred Tax Asset Balances) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred tax assets: | |||
Tax loss carried forward | ¥ 74,951 | ¥ 66,816 | |
Allowance for doubtful accounts receivable, accrued expense and others not currently deductible for tax purposes | 62,177 | 65,721 | |
Deferred revenue | 97,858 | 57,284 | |
Impairment of investment | 12,783 | 7,949 | |
Others | 753 | 753 | |
Valuation allowance | [1] | (135,505) | (80,712) |
Total deferred tax assets, net | 113,017 | 117,811 | |
Deferred tax liabilities: | |||
Related to acquired intangible assets | 2,406 | 3,281 | |
Others | 8,404 | 4,777 | |
Total deferred tax liabilities, net | ¥ 10,810 | ¥ 8,058 | |
[1] | Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. |
Income tax (Schedule of Net Ope
Income tax (Schedule of Net Operating Tax Loss Carry Forwards) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Net operating tax loss carry forwards [Line Items] | |
Operating tax loss carry forwards | ¥ 301,227 |
2,018 | |
Net operating tax loss carry forwards [Line Items] | |
Operating tax loss carry forwards | 9,362 |
2,019 | |
Net operating tax loss carry forwards [Line Items] | |
Operating tax loss carry forwards | 14,323 |
2,020 | |
Net operating tax loss carry forwards [Line Items] | |
Operating tax loss carry forwards | 72,556 |
2,021 | |
Net operating tax loss carry forwards [Line Items] | |
Operating tax loss carry forwards | 69,190 |
2,022 | |
Net operating tax loss carry forwards [Line Items] | |
Operating tax loss carry forwards | ¥ 135,796 |
Income tax (Narrative) (Details
Income tax (Narrative) (Details) ¥ in Thousands | 12 Months Ended | 96 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2017CNY (¥) | |
Income tax [Line Items] | |||||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | ||||
Operating Loss Carryforwards | ¥ | ¥ 301,227 | ||||||
Hong Kong [Member] | |||||||
Income tax [Line Items] | |||||||
Income tax rate (as a percent) | 16.50% | 16.50% | 16.50% | ||||
CHINA [Member] | |||||||
Income tax [Line Items] | |||||||
Income tax rate (as a percent) | 25.00% | 25.00% | |||||
Reduction in tax rate for three years following the exemption period (as a percent) | 50.00% | ||||||
Percentage of research and development expenses entitled to claim by enterprise | 150.00% | ||||||
PRC withholding tax rate (as a percent) | 10.00% | 10.00% | |||||
Aggregate undistributed earnings of subsidiaries available for distribution | ¥ | ¥ 4,784,432 | ¥ 7,605,499 | |||||
Inland Revenue, Hong Kong [Member] | |||||||
Income tax [Line Items] | |||||||
Minimum Ownership Percentage To Be Held By Foreign Investors, Description | if the foreign investor owns directly at least 25% of the shares of the FIE | ||||||
Inland Revenue, Hong Kong [Member] | Maximum [Member] | |||||||
Income tax [Line Items] | |||||||
PRC withholding tax rate (as a percent) | 5.00% | ||||||
Guangzhou Huaduo [Member] | |||||||
Income tax [Line Items] | |||||||
Preferential tax rate (as a percent) | 15.00% | ||||||
Guangzhou Huaduo [Member] | CHINA [Member] | |||||||
Income tax [Line Items] | |||||||
Preferential tax rate (as a percent) | 15.00% | ||||||
Guangzhou Huanju Shidai [Member] | |||||||
Income tax [Line Items] | |||||||
Dividends | $ | $ 15,000 | ||||||
Payments Related To Withholding Tax For Dividends | $ | $ 1,500 | ||||||
Guangzhou Huanju Shidai [Member] | CHINA [Member] | |||||||
Income tax [Line Items] | |||||||
Preferential tax rate (as a percent) | 10.00% | ||||||
Guangzhou Huanju Shidai [Member] | CHINA [Member] | Key National Software Enterprises [Member] | |||||||
Income tax [Line Items] | |||||||
Preferential tax rate (as a percent) | 10.00% | 10.00% | |||||
Certified High and New Technology Enterprises [Member] | CHINA [Member] | |||||||
Income tax [Line Items] | |||||||
Applicability Of Statutory Tax Rate Instaed Of Preferential Tax Rate, Description | During this three year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification as an HNTE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year, and must instead use the regular 25% EIT rate. | ||||||
Guangzhou Juhui Information Technology Co., Ltd. [Member] | CHINA [Member] | |||||||
Income tax [Line Items] | |||||||
Income tax rate (as a percent) | 25.00% | ||||||
Preferential tax rate (as a percent) | 0.00% | ||||||
Guangzhou Juhui Information Technology Co., Ltd. [Member] | CHINA [Member] | Scenario, Plan [Member] | |||||||
Income tax [Line Items] | |||||||
Preferential tax rate (as a percent) | 12.50% | 12.50% | 0.00% |
Mezzanine equity (Details)
Mezzanine equity (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | ||
Redeemable Noncontrolling Interest, Equity, Preferred, Carrying Amount | ¥ 509,668 | [1] | $ 78,000 | ¥ 0 | [1] |
Redeemable Noncontrolling Interest, Equity, Other, Carrying Amount | 15,329 | 9,272 | |||
Mezzanine equity | ¥ 524,997 | $ 80,691 | ¥ 9,272 | ||
[1] | Huya’s Series A Preferred Shares |
Mezzanine equity (Details 1)
Mezzanine equity (Details 1) - 12 months ended Dec. 31, 2017 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | ||
Balances as of January 1, 2017 | [1] | ¥ 0 | ||
Issuance of Huya’s preferred shares | 509,730 | |||
Accretion of redeemable convertible preferred shares to redemption value | 19,842 | |||
Foreign exchange | (19,904) | |||
Balance as of December 31, 2017 | ¥ 509,668 | [1] | $ 78,000 | |
[1] | Huya’s Series A Preferred Shares |
Mezzanine equity (Details 2)
Mezzanine equity (Details 2) - Redeemable Preferred Stock [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Assumptions, Risk-free interest rate | 1.70% |
Maximum [Member] | |
Fair Value Assumption Discount Rate | 35.00% |
Fair Value Assumptions, Expected Volatility Rate | 80.00% |
Minimum [Member] | |
Fair Value Assumption Discount Rate | 25.00% |
Fair Value Assumptions, Expected Volatility Rate | 50.00% |
Mezzanine equity (Narrative) (D
Mezzanine equity (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
May 16, 2017CNY (¥)shares | May 16, 2017USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | [1] | ||
Redeemable NonControlling Interest Equity Stock Issued During Period Shares New Issues | shares | 22,058,823 | 22,058,823 | ||||||
Redeemable NonControlling Interest Equity Stock Issued During Period Value New Issues | ¥ 509,730 | $ 75,000 | ||||||
Preferred Stock, Conversion Basis | The “Series A conversion price” as of the date of issuance of the Series A Preferred Shares shall initially be the Series A issue price, resulting in an initial conversion ratio for the Series A Preferred Shares of 1:1 | The “Series A conversion price” as of the date of issuance of the Series A Preferred Shares shall initially be the Series A issue price, resulting in an initial conversion ratio for the Series A Preferred Shares of 1:1 | ||||||
Temporary Equity, Accretion to Redemption Value | ¥ 19,842 | $ 3,000 | ||||||
Redeemable Noncontrolling Interest, Equity, Preferred, Carrying Amount | ¥ 509,668 | [1] | $ 78,000 | ¥ 0 | ||||
Series A Preferred Shares [Member] | ||||||||
Shares Issued, Price Per Share | $ / shares | $ 3.4 | |||||||
Preferred Stock, Redemption Terms | Series A issue price plus accrued daily interest (on the basis of a 365-day year basis) at a rate of eight percent (8%) per annum | Series A issue price plus accrued daily interest (on the basis of a 365-day year basis) at a rate of eight percent (8%) per annum | ||||||
[1] | Huya’s Series A Preferred Shares |
Common shares (Narrative) (Deta
Common shares (Narrative) (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Aug. 21, 2017USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Dec. 31, 2014shares | |
Common shares [Line Items] | ||||||||
Aggregate consideration of common shares issued and sold to an independent institutional investor | ¥ 2,950,607 | $ 453,500 | ¥ 0 | ¥ 0 | ||||
Share repurchase program approved on May 4, 2014 and March 5, 2015 [Member] | ||||||||
Common shares [Line Items] | ||||||||
Share repurchase program authorized amount | $ | $ 200,000 | |||||||
Shares repurchased value | $ | $ 169,500 | |||||||
Class A common shares [Member] | ||||||||
Common shares [Line Items] | ||||||||
Aggregate consideration of common shares issued and sold to an independent institutional investor | $ | $ 442,200 | |||||||
Issue price per share | $ / shares | $ 3.5 | |||||||
Common shares, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | |||
Common shares, shares issued | 945,245,908 | 945,245,908 | 750,115,028 | |||||
Common shares, shares outstanding | 945,245,908 | 945,245,908 | 750,115,028 | |||||
Class B common shares [Member] | ||||||||
Common shares [Line Items] | ||||||||
Common shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||
Common shares, shares issued | 317,982,976 | 317,982,976 | 359,557,976 | |||||
Common shares, shares outstanding | 317,982,976 | 317,982,976 | 359,557,976 | |||||
Restricted shares [Member] | Class A common shares [Member] | ||||||||
Common shares [Line Items] | ||||||||
Issuance of common share (in shares) | 21,305,880 | 21,305,880 | 11,887,180 | 26,110,680 | 26,110,680 | |||
Common shares [Member] | Share repurchase program approved on May 4, 2014 and March 5, 2015 [Member] | ||||||||
Common shares [Line Items] | ||||||||
Average purchase price per share | $ / shares | $ 54.82 | |||||||
Share repurchase programs, shares | 61,851,120 | 61,851,120 | ||||||
Common shares [Member] | Class A common shares [Member] | ||||||||
Common shares [Line Items] | ||||||||
Issuance of common share (in shares) | 132,250,000 | 132,250,000 | 132,250,000 | |||||
Common shares, shares outstanding | 945,245,908 | 945,245,908 | 750,115,028 | 728,227,848 | 728,227,848 | 706,173,568 | ||
Common shares [Member] | Class B common shares [Member] | ||||||||
Common shares [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 41,575,000 | 41,575,000 | 10,000,000 | 57,794,720 | 57,794,720 | |||
Common shares, shares outstanding | 317,982,976 | 317,982,976 | 359,557,976 | 369,557,976 | 369,557,976 | 427,352,696 | ||
American Depositary Shares [Member] | Share repurchase program approved on May 4, 2014 and March 5, 2015 [Member] | ||||||||
Common shares [Line Items] | ||||||||
Average purchase price per share | $ / shares | $ 2.74 | |||||||
Share repurchase programs, shares | 3,092,556 | 3,092,556 |
Share-based compensation (Share
Share-based compensation (Share Options - Narrative) (Details) - CNY (¥) ¥ in Thousands | Jul. 10, 2017 | Dec. 31, 2008 | Dec. 31, 2007 | Oct. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 16, 2011 |
Share-based compensation [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 43,000,000 | ||||||||
Huya Common Share [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Allocated Share-based Compensation Expense | ¥ 28,226 | ||||||||
Stock Transferred During Period Shares Issued For Services | 1,551,495 | ||||||||
Huya 2017 Share Incentive Plan [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Awards granted (in shares) | 11,737,705 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 17,647,058 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 11,737,705 | ||||||||
Allocated Share-based Compensation Expense | 19,473 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | ¥ 77,660 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 3 months | ||||||||
Huya 2017 Share Incentive Plan [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Vesting period | 24 months | ||||||||
Vesting rate | 50.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 24 months | ||||||||
Huya 2017 Share Incentive Plan [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Vesting period | 24 months | ||||||||
Vesting rate | 50.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 24 months | ||||||||
Share options [Member] | Pre-2009 Scheme Options [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Total intrinsic value of options exercised | ¥ 9,415 | ¥ 3,270 | ¥ 122,956 | ||||||
Share options [Member] | Pre-2009 Scheme Options [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Vesting rate | 25.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||
Share options [Member] | Pre-2009 Scheme Options [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Vesting period | 36 months | ||||||||
Vesting rate | 75.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 75.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | ||||||||
Share options [Member] | Pre-2009 Scheme Options [Member] | Employees [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Awards granted (in shares) | 8,499,050 | 12,705,700 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 8,499,050 | 12,705,700 | |||||||
Share options [Member] | Pre-2009 Scheme Options [Member] | Non-employee [Member] | |||||||||
Share-based compensation [Line Items] | |||||||||
Awards granted (in shares) | 3,832,290 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,832,290 |
Share-based compensation (Summa
Share-based compensation (Summary of Activities of Pre-2009 Scheme Options for Employees and Non-employee) (Details) - Share options [Member] - Pre-2009 Scheme Options [Member] - Parent [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of options | |||
Balance | 533,655 | 768,375 | 7,380,345 |
Exercised (in shares) | (379,120) | (234,720) | (6,611,970) |
Outstanding, vested and exercisable at the end of the period (in shares) | 154,535 | ||
Weighted average exercise price | |||
Balance | $ 0.0067 | $ 0.0067 | $ 0.0061 |
Exercised (in dollars per share) | 0.0067 | $ 0.0067 | $ 0.0061 |
Outstanding, vested and exercisable at the end of the period (in dollars per share) | $ 0.0067 | ||
Weighted average remaining contractual life | |||
Outstanding at the end of the period | 1 year 11 months 23 days | 2 years 11 months 26 days | 3 years 6 months 7 days |
Exercised | 11 months 19 days | 2 years | 2 years 5 months 16 days |
Outstanding, vested and exercisable at the end of the period | 1 year | ||
Aggregate intrinsic value | |||
Outstanding at the end of the period | $ 1,048 | $ 2,395 | $ 22,959 |
Outstanding, vested and exercisable, December 31, 2016 | $ 873 |
Share-based compensation (Restr
Share-based compensation (Restricted Share Units - Narrative) (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 16, 2011 | |
Share-based compensation [Line Items] | |||||
Shares approved for grants to qualified persons | 43,000,000 | ||||
Annual increase on the first day of each fiscal year, beginning from 2013 in maximum aggregate number of shares which may be issued pursuant to all awards under the Plan | 20,000,000 | ||||
Restricted share units [Member] | Employees [Member] | |||||
Share-based compensation [Line Items] | |||||
Granted (in shares) | 22,090,030 | 1,530,008 | 16,012,644 | ||
2011 Incentive Scheme [Member] | Parent [Member] | |||||
Share-based compensation [Line Items] | |||||
Granted (in shares) | 22,090,030 | 1,530,008 | 16,012,644 | ||
2011 Incentive Scheme [Member] | Restricted share units [Member] | |||||
Share-based compensation [Line Items] | |||||
Share-based compensation (benefit) | ¥ 211,189 | ¥ 143,350 | ¥ 152,205 | ||
Total unrecognized compensation expense | ¥ 505,073 | ||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 1 month 13 days | ||||
2011 Incentive Scheme [Member] | Restricted share units [Member] | Non-employee [Member] | Parent [Member] | |||||
Share-based compensation [Line Items] | |||||
Granted (in shares) | 150,000 |
Share-based compensation (Su121
Share-based compensation (Summary of Restricted Share Units Activity) (Details) - 2011 Incentive Scheme [Member] - Parent [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of restricted shares | |||
Outstanding at the beginning of the period (in shares) | 20,955,720 | 36,283,602 | 38,806,095 |
Granted (in shares) | 22,090,030 | 1,530,008 | 16,012,644 |
Forfeited (in shares) | (4,007,728) | (4,628,202) | (7,312,548) |
Vested (in shares) | (8,163,878) | (12,229,688) | (11,222,589) |
Outstanding at the end of the period (in shares) | 30,874,144 | 20,955,720 | 36,283,602 |
Expected to vest at the end of the period (in shares) | 27,320,315 | ||
Weighted average grant-date fair value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 2.4320 | $ 2.3535 | $ 1.5984 |
Granted (in dollars per share) | 5.3001 | 1.8618 | 3.3358 |
Forfeited (in dollars per share) | 2.5561 | 2.7386 | 1.8920 |
Vested (in dollars per share) | 2.3227 | 2.0151 | 1.4374 |
Outstanding at the end of the period (in dollars per share) | 4.4969 | $ 2.4320 | $ 2.3535 |
Expected to vest at the end of the period (in dollars per share) | $ 4.3810 |
Share-based compensation (Sh122
Share-based compensation (Share based awards granted to an employee of a subsidiary and Other share based compensation - Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsidiaries of Variable Interest Entity [Member] | |||
Share-based compensation [Line Items] | |||
Allocated Share-based Compensation Expense | ¥ 1,227 | ¥ 13,936 | ¥ 33,167 |
Share-based compensation (Numbe
Share-based compensation (Number of share options granted to Huya’s employees) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Weighted average exercise price | |
Granted (in dollars per share) | $ 2.5500 |
Share Incentive Plan 2017 [Member] | |
Number of options | |
Balance | shares | 0 |
Granted (in shares) | shares | 11,737,705 |
Forfeited (in shares) | shares | (18,000) |
Balance | shares | 11,719,705 |
Expected to vest (in shares) | shares | 10,675,362 |
Weighted average exercise price | |
Balance | $ 0 |
Granted (in dollars per share) | 2.5500 |
Forfeited (in dollars per share) | 2.5500 |
Balance | 2.5500 |
Expected to vest (in dollars per share) | $ 2.5500 |
Weighted average remaining contractual life (years) | |
Granted | 10 years |
As at December 31, 2017 | 9 years 9 months |
Expected to vest | 9 years 7 months 10 days |
Share-based compensation (Huya
Share-based compensation (Huya has used binomial option-pricing) (Details) | 12 Months Ended | |
Dec. 31, 2017$ / shares | ||
Weighted average fair value per option granted | $ 1.3798 | |
Weighted average exercise price | $ 2.5500 | |
Risk-free interest rate | 2.25% | [1] |
Expected term (in year) | 10 years | [2] |
Expected volatility | 55.00% | [3] |
Dividend yield | 0.00% | [4] |
[1] | The risk-free interest rate of periods within the contractual life of the share option is based on the China Government Bond yield as at the valuation dates. | |
[2] | The expected term is the contract life of the option. | |
[3] | Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. | |
[4] | Huya has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on Huya’s expected dividend policy over the expected term of the option. |
Basic and diluted net income125
Basic and diluted net income per share (Schedule of Calculation of Basic and Diluted Net Income Per Share) (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | ||
Numerator: | |||||
Net income attributable to the Company | ¥ 2,493,235 | $ 383,207 | ¥ 1,523,918 | ¥ 1,033,243 | |
Interest expenses of convertible notes | ¥ | 20,820 | 81,085 | 0 | ||
Numerator for diluted income per share | ¥ | ¥ 2,514,055 | ¥ 1,605,003 | ¥ 1,033,243 | ||
Denominator: | |||||
Denominator for basic calculationweighted average number of Class A and Class B common shares outstanding | [1] | 1,186,460,144 | 1,186,460,144 | 1,127,343,312 | 1,125,189,978 |
Dilutive effect of share options | 376,918 | 376,918 | 684,455 | 2,711,486 | |
Dilutive effect of restricted share units | 11,598,378 | 11,598,378 | 15,816,362 | 22,929,699 | |
Dilutive effect of convertible bonds | [2] | 18,202,301 | 18,202,301 | 72,267,200 | 0 |
Denominator for diluted calculation (in shares) | [1] | 1,216,637,741 | 1,216,637,741 | 1,216,111,329 | 1,150,831,163 |
Basic net income per share (in CNY/dollars per share) | (per share) | [1] | ¥ 2.1 | $ 0.32 | ¥ 1.35 | ¥ 0.92 |
Diluted net income per share (in CNY/dollars per share) | (per share) | [1] | ¥ 2.07 | $ 0.32 | ¥ 1.32 | ¥ 0.9 |
American Depository Shares [Member] | |||||
Denominator: | |||||
Denominator for basic calculationweighted average number of Class A and Class B common shares outstanding | [1] | 59,323,007 | 59,323,007 | 56,367,166 | 56,259,499 |
Denominator for diluted calculation (in shares) | [1] | 60,831,887 | 60,831,887 | 60,805,566 | 57,541,558 |
Basic net income per share (in CNY/dollars per share) | (per share) | [1] | ¥ 42.03 | $ 6.46 | ¥ 27.04 | ¥ 18.37 |
Diluted net income per share (in CNY/dollars per share) | (per share) | [1] | ¥ 41.33 | $ 6.35 | ¥ 26.4 | ¥ 17.96 |
[1] | Each ADS represents 20 common shares. | ||||
[2] | The weighted average number of common shares outstanding which could potentially dilute basic earnings per share in the future related to the 2019 Convertible Senior Notes was 72,267,200 and 18,202,301 for the years ended December 31, 2016 and 2017 respectively. The 2019 Convertible Senior Notes were included in the computation of diluted earnings per share in 2017 and 2016 because the inclusion of such instrument would be dilutive, while it was excluded in 2015 because the inclusion of such instrument would be anti-dilutive. |
Basic and diluted net income126
Basic and diluted net income per share (Narrative) (Details) - shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Additional Information | ||||
Dilutive effect of convertible bonds | [1] | 18,202,301 | 72,267,200 | 0 |
Convertible Bonds [Member] | ||||
Additional Information | ||||
Dilutive effect of convertible bonds | 18,202,301 | 72,267,200 | ||
[1] | The weighted average number of common shares outstanding which could potentially dilute basic earnings per share in the future related to the 2019 Convertible Senior Notes was 72,267,200 and 18,202,301 for the years ended December 31, 2016 and 2017 respectively. The 2019 Convertible Senior Notes were included in the computation of diluted earnings per share in 2017 and 2016 because the inclusion of such instrument would be dilutive, while it was excluded in 2015 because the inclusion of such instrument would be anti-dilutive. |
Related party transactions (Sch
Related party transactions (Schedule of Significant Related Party Transactions) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Related party transactions [Line Items] | ||||
Loan to related parties | ¥ 24,962 | ¥ 44,500 | ¥ 159,000 | |
Payment on behalf of related parties, net of repayments | (23,116) | $ (3,553) | 10,699 | (60,870) |
Repayment of loans from related parties | 35,462 | 0 | 160,000 | |
Online games revenue [Member] | ||||
Related party transactions [Line Items] | ||||
Revenue shared from related parties | 87,414 | 100,078 | 163,912 | |
Guangzhou Chenjun Equity Investment Limited Partnership [Member] | ||||
Related party transactions [Line Items] | ||||
Partial disposal of a subsidiary to Guangzhou Chenjun | 0 | 24,394 | 0 | |
Guangzhou Chenjun [Member] | ||||
Related party transactions [Line Items] | ||||
Partial disposal of an equity investment to Guangzhou Chenjun | 35,160 | 33,750 | 0 | |
Guangzhou Sunhongs [Member] | Bandwidth service [Member] | ||||
Related party transactions [Line Items] | ||||
Expense with related party | 92,068 | 96,224 | 74,661 | |
Other Related Party [Member] | ||||
Related party transactions [Line Items] | ||||
Other transaction with related parties | 14,987 | 13,573 | 21,153 | |
Other Related Party [Member] | Operating Rights [Member] | ||||
Related party transactions [Line Items] | ||||
Purchase of operating rights from related party | ¥ 0 | ¥ 0 | ¥ 21,508 |
Related party transactions (128
Related party transactions (Schedule of Amounts Due from/to Related Parties) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Related party transactions [Line Items] | |||
Amounts due from related parties, current | ¥ 11,190 | $ 1,720 | ¥ 135,245 |
Amounts due from related parties, non-current | 20,000 | 3,074 | 0 |
Amounts due to related parties | 30,502 | $ 4,688 | 91,245 |
Bigo [Member] | |||
Related party transactions [Line Items] | |||
Amounts due from related parties, current | 9,831 | 31,528 | |
Other Related Party [Member] | |||
Related party transactions [Line Items] | |||
Amounts due from related parties, current | 1,359 | 12,573 | |
Amounts due to related parties | 2,990 | 5,198 | |
Guangzhou Chenjun [Member] | |||
Related party transactions [Line Items] | |||
Amounts due from related parties, current | 58,144 | ||
Xingxue [Member] | |||
Related party transactions [Line Items] | |||
Amounts due from related parties, current | 20,000 | ||
Amounts due to related parties | 50 | 42,128 | |
Shanghai Rongyi [Member] | |||
Related party transactions [Line Items] | |||
Amounts due from related parties, current | 13,000 | ||
Guangzhou Sunhongs [Member] | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | 8,432 | 10,925 | |
Guangzhou Kuyou [Member] | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | 7,583 | 30,996 | |
Yunke Online [Member] | |||
Related party transactions [Line Items] | |||
Amounts due from related parties, non-current | 20,000 | ||
Shanghai Ansha [Member] | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | 6,178 | ||
Zhuhai Daren [Member] | |||
Related party transactions [Line Items] | |||
Amounts due to related parties | ¥ 5,269 | ¥ 1,998 |
Fair value measurements (Summar
Fair value measurements (Summary of Liabilities Measured at Fair Value on Recurring Basis) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Investments: | ||||
Short-term investments | ¥ 124,550 | $ 19,143 | ¥ 0 | |
Available-for-sale securities | [1] | 140,212 | 188,597 | |
Recurring [Member] | ||||
Investments: | ||||
Short-term investments | 124,550 | |||
Available-for-sale securities | 140,212 | 188,597 | ||
Total | 264,762 | |||
Recurring [Member] | Level 1 [Member] | ||||
Investments: | ||||
Short-term investments | 29,570 | |||
Available-for-sale securities | 138,251 | 182,480 | ||
Total | 167,821 | |||
Recurring [Member] | Level 2 [Member] | ||||
Investments: | ||||
Short-term investments | 94,980 | |||
Available-for-sale securities | 0 | 0 | ||
Total | 94,980 | |||
Recurring [Member] | Level 3 [Member] | ||||
Investments: | ||||
Short-term investments | 0 | |||
Available-for-sale securities | 1,961 | ¥ 6,117 | ||
Total | ¥ 1,961 | |||
[1] | In 2016, one of the Group's investees became listed on NASDAQ Global Market. As the investment has readily determinable fair value upon listing, the Group reclassified this investment as an available-for-sale security upon its listing and recorded the investment at fair value with unrealized holding gain or loss recognized in other comprehensive income under ASC 320. |
Fair value measurements (Schedu
Fair value measurements (Schedule of Changes in Level 3 Instruments) (Details) - Level 3 [Member] ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Liabilities measured at fair value [Line Items] | |
Fair value as at January 1, 2016 and January 1, 2017 | ¥ 6,117 |
Other than temporary impairment | (6,117) |
Addition | 2,033 |
Foreign currency translation adjustment | (72) |
Fair value as at December | ¥ 1,961 |
Fair value measurements (Narrat
Fair value measurements (Narrative) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Fair value measurements [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | ¥ 87,802 |
Commitments and contingencie132
Commitments and contingencies (Narrative) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Litigation [Line Items] | |||
Total office rental expenses | ¥ 62,211 | ¥ 76,753 | ¥ 53,674 |
Outstanding capital commitments | 111,966 | ||
Copyright infringement claim [Member] | |||
Litigation [Line Items] | |||
Loss Contingency, Damages Sought, Value | 20,000 | ||
Copyright infringement claim [Member] | NetEase [Member] | |||
Litigation [Line Items] | |||
Loss Contingency, Damages Sought, Value | ¥ 20,000 | ¥ 100,000 |
Commitments and contingencie133
Commitments and contingencies (Schedule of Future Minimum Payments Under Non-cancellable Operating Leases) (Details) ¥ in Thousands | Dec. 31, 2017CNY (¥) |
Future minimum payments under non-cancellable operating leases | |
2,018 | ¥ 34,002 |
2,019 | 10,030 |
2,020 | 7,344 |
2021 and after | 404 |
Total | ¥ 51,780 |
Subsequent events (Narrative) (
Subsequent events (Narrative) (Details) $ / shares in Units, ¥ in Millions, $ in Millions | Mar. 15, 2018$ / sharesshares | Mar. 08, 2018USD ($)$ / sharesshares | Mar. 31, 2018CNY (¥)shares | Mar. 31, 2018$ / shares | Mar. 22, 2018$ / sharesshares | Mar. 20, 2018shares | Feb. 23, 2018USD ($) | Dec. 31, 2017 |
Series B Preferred Shares [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Preferred Stock, Redemption Terms | price equal to the Series B-2 issue price plus accrued daily interest at a rate of 8% per annum | |||||||
Parent [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Preferred Stock Voting Rights Percentage | 58.00% | |||||||
Subsequent event [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Equity And Cost Method Investment Ownership Percentage | 34.60% | 9.84% | ||||||
Proceeds from Sale of Cost Method Investments | $ | $ 86 | |||||||
Cost Method Investments Realized Gain Loss Before Tax | $ | $ 56.3 | |||||||
Stock Purchase Option Granted Percentage | 50.10% | |||||||
Subsequent event [Member] | Class B common shares [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Share Price | $ / shares | $ 7.16 | |||||||
Subsequent event [Member] | Class B common shares [Member] | Series A1 Preference Share Holder [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Issuance of common share (in shares) | shares | 1,397,059 | |||||||
Subsequent event [Member] | Class B common shares [Member] | Investors [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Issuance of common share (in shares) | shares | 6,985,294 | |||||||
Subsequent event [Member] | Preferred Stock [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Issuance of common share (in shares) | shares | 64,488,235 | |||||||
Shares Issued, Price Per Share | $ / shares | $ 7.16 | |||||||
Proceeds from Issuance of Convertible Preferred Stock | $ | $ 461.6 | |||||||
Subsequent event [Member] | Parent [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 6,102,353 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 2.55 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 5.21 | |||||||
Subsequent event [Member] | Parent [Member] | Preferred Shares [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Description Of Basis Of Settlement To Shareholders, Liquidation | (a) the sum of (i) 100% of the Series B-2 issue price, and (ii) any and all accrued or declared but unpaid dividends on such Series B-2 Preferred Shares or (b) the pro-rata share of the distributions of Huya available to all holders of ordinary shares on an as-converted basis | |||||||
Subsequent event [Member] | Restricted share units [Member] | Parent [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 3,655,084 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 7.16 | |||||||
Subsequent event [Member] | Bilin Information Technologys Co., Ltd [Member] | ||||||||
Subsequent events [Line Items] | ||||||||
Business Combination, Consideration Transferred | ¥ | ¥ 30 |
Restricted net assets (Details)
Restricted net assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Percentage of after-tax income required to be transferred to statutory general reserve fund | 10.00% | |
Reserve level threshold for mandatory appropriation requirement (as a percent) | 50.00% | |
Restricted net assets | ¥ 3,559,861 | ¥ 2,678,921 |
Segment Reporting (Details)
Segment Reporting (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||||
Net revenues | |||||||
Others | ¥ 182,422 | $ 28,038 | ¥ 257,638 | ¥ 294,200 | |||
Total net revenues | 11,594,792 | 1,782,088 | 8,204,050 | 5,897,249 | |||
Cost of revenues | (7,026,402) | [1] | (1,079,938) | (5,103,430) | [2] | (3,579,744) | [3] |
Gross profit (loss) | 4,568,390 | 702,150 | 3,100,620 | 2,317,505 | |||
Operating expenses | |||||||
Research and development expenses | (781,886) | [1] | (120,174) | (675,230) | [2] | (548,799) | [3] |
Sales and marketing expenses | (691,281) | [1] | (106,248) | (387,268) | [2] | (312,870) | [3] |
General and administrative expenses | (544,641) | [1] | (83,710) | (482,437) | [2] | (358,474) | [3] |
Goodwill impairment | (2,527) | [1],[4] | (388) | (17,665) | [2],[4] | (310,124) | [3] |
Fair value change of contingent consideration | 0 | 0 | 0 | [2] | 292,471 | [3] | |
Total operating expenses | (2,020,335) | [1] | (310,520) | (1,562,600) | [2] | (1,237,796) | [3] |
Gain on deconsolidation and disposal of subsidiaries | 37,989 | 5,839 | 103,960 | 0 | |||
Other income | 113,187 | 17,397 | 129,504 | 82,300 | |||
Operating income (loss) | 2,699,231 | 414,866 | 1,771,484 | 1,162,009 | |||
Share-based compensation | 257,661 | 39,602 | 157,286 | 185,372 | |||
Interest expense | (32,122) | (4,937) | (81,085) | (97,125) | |||
Interest income | 180,384 | 27,725 | 67,193 | 137,892 | |||
Gain on partial disposal of investments | 45,861 | 7,049 | 25,061 | 0 | |||
Foreign currency exchange losses, net | (2,176) | (334) | 1,158 | (38,099) | |||
Other non-operating expenses | 0 | 0 | 0 | (2,165) | |||
Income (loss) before income tax expenses | 2,891,178 | 444,369 | 1,783,811 | 1,162,512 | |||
Income tax (expenses) benefits | (415,811) | (63,909) | (280,514) | (178,327) | |||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | 2,475,367 | 380,460 | 1,503,297 | 984,185 | |||
Share of income (loss) in equity method investments, net of income taxes | 33,024 | 5,076 | 8,279 | 14,120 | |||
Net income (loss) | 2,508,391 | 385,536 | 1,511,576 | 998,305 | |||
Cost of revenues [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 42,759 | 6,572 | 15,894 | 23,963 | |||
Research and development expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 122,348 | 18,805 | 78,816 | 70,951 | |||
Sales and marketing expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 4,417 | 679 | 3,107 | 3,283 | |||
General and administrative expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 88,137 | 13,546 | 59,469 | 87,175 | |||
Live streaming [Member] | |||||||
Net revenues | |||||||
Total net revenues | 10,670,954 | 1,640,096 | 7,027,227 | 4,539,857 | |||
Online games [Member] | |||||||
Net revenues | |||||||
Total net revenues | 543,855 | 83,589 | 634,325 | 771,882 | |||
Membership [Member] | |||||||
Net revenues | |||||||
Total net revenues | 197,561 | $ 30,365 | 284,860 | 291,310 | |||
Huya [Member] | |||||||
Net revenues | |||||||
Others | 74,528 | 4,926 | |||||
Total net revenues | 2,184,816 | 796,904 | 356,324 | ||||
Cost of revenues | (1,929,864) | [1] | (1,094,644) | [2] | (668,493) | [3] | |
Gross profit (loss) | 254,952 | (297,740) | (312,169) | ||||
Operating expenses | |||||||
Research and development expenses | (170,160) | [1] | (188,334) | [2] | (152,351) | [3] | |
Sales and marketing expenses | (87,292) | [1] | (68,746) | [2] | (48,303) | [3] | |
General and administrative expenses | (101,995) | [1] | (71,325) | [2] | (33,318) | [3] | |
Goodwill impairment | [1] | [2] | [3] | ||||
Fair value change of contingent consideration | [2] | [3] | |||||
Total operating expenses | (359,447) | [1] | (328,405) | [2] | (233,972) | [3] | |
Gain on deconsolidation and disposal of subsidiaries | |||||||
Other income | 9,629 | ||||||
Operating income (loss) | (94,866) | (626,145) | (546,141) | ||||
Interest expense | |||||||
Interest income | 14,049 | 518 | |||||
Gain on partial disposal of investments | |||||||
Foreign currency exchange losses, net | |||||||
Other non-operating expenses | |||||||
Income (loss) before income tax expenses | (80,817) | (625,627) | (546,141) | ||||
Income tax (expenses) benefits | 0 | ||||||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | (80,817) | (625,627) | (546,141) | ||||
Share of income (loss) in equity method investments, net of income taxes | (151) | ||||||
Net income (loss) | (80,968) | (625,627) | (546,141) | ||||
Huya [Member] | Cost of revenues [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 2,877 | 5,677 | 2,642 | ||||
Huya [Member] | Research and development expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 9,174 | 19,538 | 11,759 | ||||
Huya [Member] | Sales and marketing expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 791 | 326 | 655 | ||||
Huya [Member] | General and administrative expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 27,266 | 26,557 | 5,425 | ||||
Huya [Member] | Live streaming [Member] | |||||||
Net revenues | |||||||
Total net revenues | 2,069,536 | 791,978 | 356,324 | ||||
Huya [Member] | Online games [Member] | |||||||
Net revenues | |||||||
Total net revenues | 32,680 | ||||||
Huya [Member] | Membership [Member] | |||||||
Net revenues | |||||||
Total net revenues | 8,072 | ||||||
100 Education [Member] | |||||||
Net revenues | |||||||
Total net revenues | 160,727 | 123,774 | |||||
Cost of revenues | (107,972) | [2] | (126,614) | [3] | |||
Gross profit (loss) | 52,755 | (2,840) | |||||
Operating expenses | |||||||
Research and development expenses | (30,521) | [2] | (36,850) | [3] | |||
Sales and marketing expenses | (59,482) | [2] | (35,272) | [3] | |||
General and administrative expenses | (35,154) | [2] | (92,070) | [3] | |||
Goodwill impairment | 0 | [4] | (13,804) | [2],[4] | (182,089) | [3] | |
Fair value change of contingent consideration | [2] | 185,165 | [3] | ||||
Total operating expenses | (138,961) | [2] | (161,116) | [3] | |||
Gain on deconsolidation and disposal of subsidiaries | |||||||
Other income | |||||||
Operating income (loss) | (86,206) | (163,956) | |||||
Interest expense | |||||||
Interest income | 44 | 133 | |||||
Gain on partial disposal of investments | |||||||
Foreign currency exchange losses, net | |||||||
Other non-operating expenses | |||||||
Income (loss) before income tax expenses | (86,162) | (163,823) | |||||
Income tax (expenses) benefits | 14,015 | 14,737 | |||||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | (72,147) | (149,086) | |||||
Share of income (loss) in equity method investments, net of income taxes | (111) | ||||||
Net income (loss) | (72,258) | (149,086) | |||||
100 Education [Member] | Cost of revenues [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 324 | 389 | |||||
100 Education [Member] | Research and development expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 6,193 | 6,797 | |||||
100 Education [Member] | Sales and marketing expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | |||||||
100 Education [Member] | General and administrative expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 13,389 | 32,613 | |||||
100 Education [Member] | Live streaming [Member] | |||||||
Net revenues | |||||||
Total net revenues | |||||||
100 Education [Member] | Online games [Member] | |||||||
Net revenues | |||||||
Total net revenues | |||||||
100 Education [Member] | Membership [Member] | |||||||
Net revenues | |||||||
Total net revenues | |||||||
100 Education [Member] | Others | |||||||
Net revenues | |||||||
Others | 160,727 | 123,774 | |||||
YY Live [Member] | |||||||
Net revenues | |||||||
Others | 107,894 | 91,985 | 170,426 | ||||
Total net revenues | 9,409,976 | 7,246,419 | 5,417,151 | ||||
Cost of revenues | (5,096,538) | [1] | (3,900,814) | [2] | (2,784,637) | [3] | |
Gross profit (loss) | 4,313,438 | 3,345,605 | 2,632,514 | ||||
Operating expenses | |||||||
Research and development expenses | (611,726) | [1] | (456,375) | [2] | (359,598) | [3] | |
Sales and marketing expenses | (603,989) | [1] | (259,040) | [2] | (229,295) | [3] | |
General and administrative expenses | (442,646) | [1] | (375,958) | [2] | (233,086) | [3] | |
Goodwill impairment | (2,527) | [1],[4] | (3,861) | [2],[4] | (128,035) | [3] | |
Fair value change of contingent consideration | [2] | 107,306 | [3] | ||||
Total operating expenses | (1,660,888) | [1] | (1,095,234) | [2] | (842,708) | [3] | |
Gain on deconsolidation and disposal of subsidiaries | 37,989 | 103,960 | |||||
Other income | 103,558 | 129,504 | 82,300 | ||||
Operating income (loss) | 2,794,097 | 2,483,835 | 1,872,106 | ||||
Interest expense | (32,122) | (81,085) | (97,125) | ||||
Interest income | 166,335 | 66,631 | 137,759 | ||||
Gain on partial disposal of investments | 45,861 | 25,061 | |||||
Foreign currency exchange losses, net | (2,176) | 1,158 | (38,099) | ||||
Other non-operating expenses | (2,165) | ||||||
Income (loss) before income tax expenses | 2,971,995 | 2,495,600 | 1,872,476 | ||||
Income tax (expenses) benefits | (415,811) | (294,529) | (193,064) | ||||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | 2,556,184 | 2,201,071 | 1,679,412 | ||||
Share of income (loss) in equity method investments, net of income taxes | 33,175 | 8,390 | 14,120 | ||||
Net income (loss) | 2,589,359 | 2,209,461 | 1,693,532 | ||||
YY Live [Member] | Cost of revenues [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 39,882 | 9,893 | 20,932 | ||||
YY Live [Member] | Research and development expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 113,174 | 53,085 | 52,395 | ||||
YY Live [Member] | Sales and marketing expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 3,626 | 2,781 | 2,628 | ||||
YY Live [Member] | General and administrative expenses [Member] | |||||||
Operating expenses | |||||||
Share-based compensation | 60,871 | 19,523 | 49,137 | ||||
YY Live [Member] | Live streaming [Member] | |||||||
Net revenues | |||||||
Total net revenues | 8,601,418 | 6,235,249 | 4,183,533 | ||||
YY Live [Member] | Online games [Member] | |||||||
Net revenues | |||||||
Total net revenues | 511,175 | 634,325 | 771,882 | ||||
YY Live [Member] | Membership [Member] | |||||||
Net revenues | |||||||
Total net revenues | ¥ 189,489 | ¥ 284,860 | ¥ 291,310 | ||||
[1] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 Share based compensation expenses 217,553 40,108 257,661 | ||||||
[2] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 Share based compensation expenses 85,282 52,098 19,906 157,286 | ||||||
[3] | Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 Share based compensation expenses 125,092 20,481 39,799 185,372 | ||||||
[4] | The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results.In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“100-Online”) as well as impairment indicator for Bilin Online. Based on the results of the impairment assessment, an impairment charge of RMB13,804 for 100-Online and an impairment charge of RMB3,861 for Bilin Online were recognized, respectively.In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB2,527 for Zhuque was recognized.The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business. |
Additional information - con137
Additional information - condensed financial statements of the Company (Condensed balance sheets) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | |
Current assets | |||||||
Amounts due from a subsidiary | ¥ 11,190 | $ 1,720 | ¥ 135,245 | ||||
Non-current assets | |||||||
Total assets | 14,458,719 | 2,222,265 | 9,785,792 | ||||
Current liabilities | |||||||
Convertible bonds | 0 | 0 | $ 1,000 | 2,768,469 | |||
Short-term loans | 588,235 | 90,410 | 0 | ||||
Total current liabilities | 3,145,799 | 483,499 | 4,690,448 | ||||
Non-current liabilities | |||||||
Convertible bonds | 6,536 | 1,005 | 0 | ||||
Total liabilities | 3,220,863 | 495,036 | 4,723,965 | ||||
Shareholders’ equity | |||||||
Additional paid-in capital | 5,339,844 | 820,719 | 2,165,766 | ||||
Retained earnings | 5,218,110 | 802,009 | 2,728,736 | ||||
Accumulated other comprehensive income (loss) | (9,597) | (1,475) | 93,066 | ||||
Total shareholders' equity | 10,712,859 | 1,646,538 | 5,052,555 | ¥ 3,246,819 | ¥ 3,090,164 | ||
Total liabilities, mezzanine equity and shareholders’ equity | 14,458,719 | 2,222,265 | 9,785,792 | ||||
Class A common shares [Member] | |||||||
Shareholders’ equity | |||||||
Common shares | 57 | 9 | 44 | ||||
Class B common shares [Member] | |||||||
Shareholders’ equity | |||||||
Common shares | 23 | 4 | 26 | ||||
Parent [Member] | |||||||
Current assets | |||||||
Amounts due from a subsidiary | 2,671,590 | 410,616 | [1] | 1,947,080 | |||
Non-current assets | |||||||
Interests in subsidiaries and VIEs | 8,535,113 | 1,311,823 | [1] | 5,883,684 | |||
Total assets | 11,206,703 | 1,722,439 | [1] | 7,830,764 | |||
Current liabilities | |||||||
Interests payable | 777 | 119 | [1] | 15,800 | |||
Convertible bonds | 2,768,469 | ||||||
Short-term loans | 588,235 | 90,410 | [1] | ||||
Total current liabilities | 589,012 | 90,529 | [1] | 2,784,269 | |||
Non-current liabilities | |||||||
Convertible bonds | 6,536 | 1,005 | [1] | ||||
Total liabilities | 595,548 | 91,534 | [1] | 2,784,269 | |||
Shareholders’ equity | |||||||
Additional paid-in capital | 5,339,844 | 820,719 | [1] | 2,165,766 | |||
Retained earnings | 5,280,828 | 811,648 | [1] | 2,787,593 | |||
Accumulated other comprehensive income (loss) | (9,597) | (1,475) | [1] | 93,066 | |||
Total shareholders' equity | 10,611,155 | 1,630,905 | [1] | 5,046,495 | |||
Total liabilities, mezzanine equity and shareholders’ equity | 11,206,703 | 1,722,439 | [1] | 7,830,764 | |||
Parent [Member] | Class A common shares [Member] | |||||||
Shareholders’ equity | |||||||
Common shares | 57 | 9 | [1] | 44 | |||
Parent [Member] | Class B common shares [Member] | |||||||
Shareholders’ equity | |||||||
Common shares | ¥ 23 | $ 4 | [1] | ¥ 26 | |||
[1] | Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB 6.5063 on December 29, 2017 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Additional information - con138
Additional information - condensed financial statements of the Company (Condensed balance sheets) (Parenthetical) (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class A common shares [Member] | |||
Condensed balance sheets [Line Items] | |||
Common shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | |
Common shares, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Common shares, shares issued | 945,245,908 | 750,115,028 | |
Common shares, shares outstanding | 945,245,908 | 750,115,028 | |
Class B common shares [Member] | |||
Condensed balance sheets [Line Items] | |||
Common shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | |
Common shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common shares, shares issued | 317,982,976 | 359,557,976 | |
Common shares, shares outstanding | 317,982,976 | 359,557,976 | |
Parent [Member] | Class A common shares [Member] | |||
Condensed balance sheets [Line Items] | |||
Common shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | |
Common shares, shares authorized | 10,000,000,000 | 10,000,000,000 | |
Common shares, shares issued | 945,245,908 | 750,115,028 | |
Common shares, shares outstanding | 945,245,908 | 750,115,028 | |
Parent [Member] | Class B common shares [Member] | |||
Condensed balance sheets [Line Items] | |||
Common shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | |
Common shares, shares authorized | 1,000,000,000 | 1,000,000,000 | |
Common shares, shares issued | 317,982,976 | 359,557,976 | |
Common shares, shares outstanding | 317,982,976 | 359,557,976 |
Additional information - con139
Additional information - condensed financial statements of the Company (Condensed statements of operations and comprehensive income) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | ||
Condensed statements of operations [Line Items] | |||||
Interest expense | ¥ (32,122) | $ (4,937) | ¥ (81,085) | ¥ (97,125) | |
Net income (loss) | 2,508,391 | 385,536 | 1,511,576 | 998,305 | |
Other comprehensive income (loss) : | |||||
Unrealized gain (loss) of available-for-sale securities | (41,150) | (6,325) | 134,768 | 0 | |
Foreign currency translation adjustments, net of nil tax | (61,513) | (9,454) | (5,317) | 4,414 | |
Total comprehensive income | 2,390,572 | 367,428 | 1,653,369 | 1,037,657 | |
Parent [Member] | |||||
Condensed statements of operations [Line Items] | |||||
Share of profit of subsidiaries and VIEs | 2,525,357 | 388,140 | [1] | 1,605,003 | 1,108,029 |
Interest expense | (32,122) | (4,937) | [1] | (81,085) | (74,786) |
Net income (loss) | 2,493,235 | 383,203 | [1] | 1,523,918 | 1,033,243 |
Other comprehensive income (loss) : | |||||
Unrealized gain (loss) of available-for-sale securities | (41,150) | (6,325) | [1] | 134,768 | |
Foreign currency translation adjustments, net of nil tax | (61,513) | (9,454) | [1] | (5,317) | 4,414 |
Total comprehensive income | ¥ 2,390,572 | $ 367,424 | [1] | ¥ 1,653,369 | ¥ 1,037,657 |
[1] | Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB 6.5063 on December 29, 2017 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Additional information- condens
Additional information- condensed financial statements of the Company (Condensed statements of cash flows) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | ||
Condensed statement of cash flows [Line Items] | ||||||
Cash flows from operating activities | ¥ 3,718,452 | $ 571,517 | ¥ 2,421,135 | ¥ 1,823,442 | ||
Cash flows from investing activities | ||||||
Net cash used in investing activities | (4,037,516) | (620,556) | (1,783,138) | (1,048,022) | ||
Cash flows from financing activities | ||||||
Proceeds from bank borrowings | 621,118 | 95,464 | 0 | 1,148,500 | ||
Proceeds from issuance of common shares, net of issuance cost | 2,950,607 | 453,500 | 0 | 0 | ||
Repayment of convertible bonds | 2,753,630 | 423,225 | 0 | 0 | ||
Net cash provided by financing activities | 1,392,525 | 214,027 | 10,651 | (337,143) | ||
Net increase in cash and cash equivalents | 1,073,461 | 164,988 | 648,648 | 438,277 | ||
Cash and cash equivalents at the beginning of the year | 1,579,743 | 242,802 | 928,934 | 475,028 | ||
Cash and cash equivalents at the end of the year | 2,617,432 | 402,292 | 1,579,743 | 928,934 | ¥ 475,028 | |
Parent [Member] | ||||||
Condensed statement of cash flows [Line Items] | ||||||
Cash flows from operating activities | 0 | 0 | 0 | 0 | ||
Cash flows from investing activities | ||||||
Repayment of loans from a subsidiary | 2,132,512 | 327,761 | [1] | |||
Loans to a subsidiary | (2,950,607) | (453,500) | [1] | |||
Net cash used in investing activities | (818,095) | (125,739) | [1] | |||
Cash flows from financing activities | ||||||
Proceeds from bank borrowings | 621,118 | 95,464 | [1] | |||
Proceeds from issuance of common shares, net of issuance cost | 2,950,607 | 453,500 | ||||
Repayment of convertible bonds | (2,753,630) | (423,225) | [1] | |||
Net cash provided by financing activities | 818,095 | 125,739 | [1] | |||
Net increase in cash and cash equivalents | [1] | |||||
Cash and cash equivalents at the beginning of the year | [1] | |||||
Cash and cash equivalents at the end of the year | [1] | |||||
[1] | Convenience translation Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB 6.5063 on December 29, 2017 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |