Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-35729 |
Entity Registrant Name | JOYY INC |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 30 Pasir Panjang Road #15-31A |
Entity Address, City or Town | Mapletree Business City |
Entity Address, Postal Zip Code | 117440 |
Entity Address, Country | SG |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001530238 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Guangzhou, the People’s Republic of China |
Auditor Firm ID | 1424 |
ADS | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares (each representing 20 Class A common shares, par value US$0.00001 per share) |
Security Exchange Name | NASDAQ |
Trading Symbol | YY |
Class A common shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A common shares, par value US$0.00001 per share* |
Security Exchange Name | NASDAQ |
Trading Symbol | YY |
Entity Common Stock, Shares Outstanding | 1,146,336,305 |
Class B common shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 326,509,555 |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | David Xueling Li |
Entity Address, Address Line One | 30 Pasir Panjang Road #15-31A |
Entity Address, City or Town | Mapletree Business City |
Entity Address, Postal Zip Code | 117440 |
Entity Address, Country | SG |
City Area Code | 65 |
Local Phone Number | 63519330 |
Contact Personnel Email Address | lxl@joyy.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 1,837,185 | $ 1,742,749 |
Restricted cash and cash equivalents | 297,022 | 13,733 |
Short-term deposits | 1,604,198 | 1,325,068 |
Restricted short-term deposits | 285 | 31,489 |
Short-term investments | 946,543 | 489,101 |
Accounts receivable, net of allowance of US$7,387 and US$12,426 as of December 31, 2020 and 2021, respectively | 114,372 | 142,999 |
Amounts due from related parties, net of allowance of US$2,281 and US$476 as of December 31, 2020 and 2021, respectively | 56,984 | 611 |
Financing receivables, net of allowance of US$19,922 and US$20,317 as of December 31, 2020 and 2021, respectively | 0 | 172 |
Prepayments and other current assets, net of allowance of US$5,756 and US$14,444 as of December 31, 2020 and 2021, respectively | 213,733 | 102,872 |
Assets held for sale | 0 | 52,528 |
Total current assets | 5,070,322 | 3,901,322 |
Non-current assets | ||
Investments | 1,022,455 | 1,239,354 |
Property and equipment, net | 365,392 | 401,661 |
Land use rights, net | 370,052 | 258,770 |
Intangible assets, net | 312,082 | 344,214 |
Right-of-use assets, net | 16,565 | 21,579 |
Goodwill | 1,958,263 | 1,872,083 |
Financing receivables, net of allowance of US$10,192 and nil as of December 31, 2020 and 2021, respectively | 0 | 19,716 |
Other non-current assets | 4,881 | 10,758 |
Assets held for sale | 0 | 25,500 |
Total non-current assets | 4,049,690 | 4,193,635 |
Total assets | 9,120,012 | 8,094,957 |
Current liabilities (including amounts of the consolidated VIEs without recourse to the Company of US$449,414 and US$173,347 as of December 31, 2020 and 2021, respectively) | ||
Accounts payable | 18,011 | 20,956 |
Deferred revenue | 60,910 | 67,230 |
Advances from customers | 3,426 | 775 |
Income taxes payable | 65,738 | 60,895 |
Accrued liabilities and other current liabilities | 2,345,838 | 484,450 |
Amounts due to related parties | 6,931 | 3,822 |
Lease liabilities due within one year | 11,041 | 14,332 |
Short-term loans | 0 | 112,549 |
Liabilities held for sale | 0 | 179,109 |
Total current liabilities | 2,511,895 | 944,118 |
Non-current liabilities (including amounts of the consolidated VIEs without recourse to the Company of US$18,750 and US$22,422 as of December 31, 2020 and 2021, respectively) | ||
Convertible bonds | 924,077 | 779,225 |
Lease liabilities | 5,734 | 8,121 |
Deferred revenue | 6,422 | 3,132 |
Deferred tax liabilities | 36,214 | 42,422 |
Other non-current liabilities | 7,372 | |
Liabilities held for sale | 4,415 | |
Total non-current liabilities | 979,819 | 837,315 |
Total liabilities | 3,491,714 | 1,781,433 |
Commitments and contingencies (Note 30) | ||
Mezzanine equity | 65,833 | 72,617 |
Shareholders' equity | ||
Treasury Shares (US$0.00001 par value; 41,862,606 and 171,504,159 shares held as of December 31, 2020 and December 31, 2021, respectively) | (526,724) | (139,528) |
Additional paid-in capital | 3,246,523 | 3,456,844 |
Statutory reserves | 26,804 | 17,825 |
Retained earnings | 2,712,534 | 2,881,782 |
Accumulated other comprehensive income | 69,175 | 18,471 |
Total JOYY Inc.'s shareholders' equity | 5,528,328 | 6,235,410 |
Non-controlling interests | 34,137 | 5,497 |
Total shareholders' equity | 5,562,465 | 6,240,907 |
Total liabilities, mezzanine equity and shareholders' equity | 9,120,012 | 8,094,957 |
Class A common shares | ||
Shareholders' equity | ||
Common shares | 13 | 13 |
Class B common shares | ||
Shareholders' equity | ||
Common shares | $ 3 | $ 3 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for doubtful receivables | $ 12,426 | $ 7,387 |
Allowance for financing receivables, current | 20,317 | |
Allowance for financing receivables, non-current | 0 | |
Current liabilities | 2,511,895 | 944,118 |
Non-current liabilities | $ 979,819 | $ 837,315 |
Treasury shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Number of treasury shares held | 171,504,159 | 41,862,606 |
Class A common shares | ||
Common stock, 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 | 1,317,840,464 | 1,314,208,824 |
Common shares, shares outstanding | 1,146,336,305 | 1,272,346,218 |
Class B common shares | ||
Common stock, 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 | 326,509,555 | 326,509,555 |
Common shares, shares outstanding | 326,509,555 | 326,509,555 |
Variable interest entity | ||
Current liabilities | $ 305,234 | $ 600,487 |
Non-current liabilities | $ 22,422 | $ 18,750 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | ||||
Net revenues | ||||||
Total net revenues | $ 2,619,051 | $ 1,918,144 | $ 900,702 | |||
Cost of revenues | [1] | (1,781,150) | (1,378,146) | (656,920) | ||
Gross profit | 837,901 | 539,998 | 243,782 | |||
Operating expenses | ||||||
Research and development expenses | [1] | (279,781) | (302,818) | (236,504) | ||
Sales and marketing expenses | [1] | (468,407) | (505,389) | (404,495) | ||
General and administrative expenses | [1] | (221,731) | (146,666) | (135,564) | ||
Total operating expenses | (969,919) | (954,873) | (776,563) | |||
Gain on disposal of business | 4,959 | 0 | 11,754 | |||
Other income | 20,376 | 8,095 | 5,674 | |||
Operating income (loss) | (106,683) | (406,780) | (515,353) | |||
Interest expense | (14,475) | (75,555) | (38,114) | |||
Interest income and investment income | 91,233 | 89,078 | 61,747 | |||
Foreign currency exchange gains (losses), net | (13,377) | (17,472) | 1,295 | |||
Gain (loss) on disposal and deemed disposal of investments | (23,762) | 272,281 | 0 | |||
Gain (loss) on fair value changes of investments | (15,435) | 160,849 | 397,960 | |||
(Loss) gain on extinguishment of debt and derivative | 5,291 | (6,277) | (2,277) | |||
Other non-operating expenses | (381) | (2,467) | 0 | |||
(Loss) income before income tax expenses | (77,589) | 13,657 | (94,742) | |||
Income tax benefit (expenses) | (25,745) | (27,825) | 20,098 | |||
Loss before share of income (loss) in equity method investments, net of income taxes | (103,334) | (14,168) | (74,644) | |||
Share of income (loss) in equity method investments, net of income taxes | (26,217) | (7,634) | 5,974 | |||
Net loss from continuing operations | (129,551) | (21,802) | (68,670) | |||
Net income from discontinued operations | 35,567 | 1,401,670 | 615,268 | |||
Net income (loss) | (93,984) | 1,379,868 | 546,598 | |||
Net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified non-controlling interest shareholders | 13,691 | (6,971) | (36,786) | |||
Net income (loss) attributable to controlling interest of JOYY Inc. | (80,293) | 1,372,897 | 509,812 | |||
Net income (loss) from continuing operations attributable to controlling interest of JOYY Inc. | (115,860) | (18,741) | (64,780) | |||
Net income from discontinued operations attributable to controlling interest of JOYY Inc. | 35,567 | 1,391,638 | 574,592 | |||
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | (5,236) | (5,564) | (5,564) | |||
Cumulative dividend on subsidiary's Series A Preferred Shares | (4,000) | (4,000) | (4,000) | |||
Net income (loss) attributable to common shareholders of JOYY Inc. | (89,529) | 1,363,333 | 500,248 | |||
Net loss from continuing operations attributable to common shareholders of JOYY Inc. | (125,096) | (28,305) | (74,344) | |||
Net income from discontinued operations attributable to common shareholders of JOYY Inc. | 35,567 | 1,391,638 | 574,592 | |||
Other comprehensive (loss) income: | ||||||
Foreign currency translation adjustments, net of nil tax | 58,887 | 215,363 | (31,105) | |||
Comprehensive income (loss) attributable to the common shareholders of JOYY Inc. | $ (30,642) | $ 1,578,696 | $ 469,143 | |||
Net income (loss) per ADS/common share | ||||||
Net income (loss) per share, Basic | (per share) | $ (0.06) | [2] | $ 0.85 | $ 0.32 | [2] | |
Net income (loss) per share, Basic, Continuing operations | $ / shares | (0.08) | (0.02) | (0.05) | |||
Net income (loss) per share, Basic, Discontinued operations | $ / shares | 0.02 | 0.87 | 0.37 | |||
Net income (loss) per share, Diluted | (per share) | (0.06) | [2] | 0.85 | 0.32 | ||
Net income (loss) per share, Diluted, Continuing operations | $ / shares | (0.08) | (0.02) | (0.05) | |||
Net income (loss) per share, Diluted, Discontinued operations | $ / shares | $ 0.02 | $ 0.87 | $ 0.37 | |||
Weighted average number of ADS/Common shares used in calculating net income (loss) per ADS/Common share | ||||||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Continuing operations | shares | 1,562,016,001 | 1,600,199,759 | 1,544,396,920 | |||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Discontinued operations | shares | 1,562,016,001 | 1,600,199,759 | 1,544,396,920 | |||
Weighted average number of share used in calculating net income (loss) per ADS, Diluted, Continuing operations | shares | 1,562,016,001 | 1,600,199,759 | 1,544,396,920 | |||
Weighted Average Number of Shares Outstanding, Diluted, From Discontinued Operations | shares | [2] | 1,562,016,001 | 1,600,199,759 | 1,544,396,920 | ||
ADSs [Member] | ||||||
Net income (loss) per ADS/common share | ||||||
Net income (loss) per share, Basic | $ / shares | [2] | $ (1.14) | $ 17.04 | $ 6.48 | ||
Net income (loss) per share, Basic, Continuing operations | $ / shares | [2] | (1.60) | (0.35) | (0.96) | ||
Net income (loss) per share, Basic, Discontinued operations | $ / shares | [2] | 0.46 | 17.39 | 7.44 | ||
Net income (loss) per share, Diluted | $ / shares | [2] | (1.14) | 17.04 | 6.45 | ||
Net income (loss) per share, Diluted, Continuing operations | $ / shares | [2] | (1.60) | (0.35) | (0.96) | ||
Net income (loss) per share, Diluted, Discontinued operations | $ / shares | [2] | $ 0.46 | $ 17.39 | $ 7.41 | ||
Weighted average number of ADS/Common shares used in calculating net income (loss) per ADS/Common share | ||||||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Continuing operations | shares | 78,100,800 | 80,009,988 | 77,219,846 | |||
Weighted average number of share used in calculating net income (loss) per ADS, Basic, Discontinued operations | shares | 78,100,800 | 80,009,988 | 77,219,846 | |||
Weighted average number of share used in calculating net income (loss) per ADS, Diluted, Continuing operations | shares | 78,100,800 | 80,009,988 | 77,219,846 | |||
Weighted Average Number of Shares Outstanding, Diluted, From Discontinued Operations | shares | 78,100,800 | 80,009,988 | 77,219,846 | |||
Live streaming | ||||||
Net revenues | ||||||
Total net revenues | $ 2,476,790 | $ 1,815,826 | $ 769,148 | |||
Others [Member] | ||||||
Net revenues | ||||||
Total net revenues | $ 142,261 | $ 102,318 | $ 131,554 | |||
[1] | Share-based compensation was allocated in cost of revenues and operating expenses as follows | |||||
[2] | Each ADS represents 20 common shares. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Share-based compensation | $ 33,382 | $ 92,160 | $ 76,356 |
Cost of revenues [Member] | |||
Share-based compensation | 8,089 | 5,797 | 5,932 |
Research and development expenses | |||
Share-based compensation | 24,053 | 42,646 | 52,611 |
Sales and marketing expenses [Member] | |||
Share-based compensation | 1,285 | 1,311 | 724 |
General and administrative expenses [Member] | |||
Share-based compensation | $ (45) | $ 42,406 | $ 17,089 |
Class A common shares | |||
Number of common shares represented by each ADS | 20 | 20 | 20 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common sharesClass A common shares | Common sharesClass B common shares | Treasury Stock | Additional paid-in capital | Statutory reserves | Retained earnings | Accumulated other comprehensive income (loss) | Total JOYY Inc.'s shareholders' equity | Non controlling interests | Class A common shares | Class B common shares | Total |
Issuance of Huya's common shares for exercised share options | $ (2,729) | $ (207) | $ (2,936) | $ 7,628 | $ 4,692 | |||||||
Issuance of common shares for vested restricted shares and restricted share units | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | 6,216,060 | 0 | ||||||||||
Issuance of common shares in connection with the acquisition of Bigo | $ 3 | 1,149,073 | 1,149,076 | 1,149,076 | ||||||||
Issuance of common shares in connection with the acquisition of Bigo (in shares) | 305,127,046 | 38,326,579 | ||||||||||
Net forfeiture of restricted shares (in shares) | 8,761,450 | |||||||||||
Share-based compensation | $ 0 | $ 0 | 0 | 118,637 | 0 | 0 | 0 | 118,637 | 18,730 | 137,367 | ||
Partial disposal of Huya's interests to non-controlling interest shareholders, net of tax | 81,208 | (938) | 80,270 | 19,666 | 99,936 | |||||||
Appropriation to statutory reserves | $ 0 | 0 | 0 | 0 | 6,856 | (6,856) | 0 | 0 | 0 | 0 | ||
Bifurcation of conversion feature of convertible bonds | 294,143 | 294,143 | 294,143 | |||||||||
Purchase of caped call options in relation to the conversion features of the convertible bonds | (77,000) | (77,000) | (77,000) | |||||||||
Exercise/Settlement of RSU's in subsidiaries | (1,101) | (1,101) | 509 | (592) | ||||||||
Repurchase of common stock | (23,712) | (11,726) | (35,438) | (35,438) | ||||||||
Repurchase of common stock (in shares) | (8,682,900) | |||||||||||
Deemed contribution from non-controlling interest shareholders | 903 | 903 | (903) | |||||||||
Proceed from a Huya's IPO, net of issuance cost | 43,080 | (1,456) | 41,624 | 268,196 | 309,820 | |||||||
Balance at Dec. 31, 2019 | $ 13 | 3 | (23,712) | 3,321,554 | 22,882 | 1,574,465 | (155,392) | 4,739,813 | 767,163 | 5,506,976 | ||
Components of comprehensive income | ||||||||||||
Net income (loss) attributable to JOYY Inc. and non-controlling interest shareholders | 509,812 | 509,812 | 36,786 | 546,598 | ||||||||
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | 0 | 0 | 0 | 0 | 0 | (5,564) | 0 | (5,564) | (244) | (5,808) | ||
Foreign currency translation adjustments, net of nil tax | $ 0 | $ 0 | 0 | 0 | 0 | 0 | (31,105) | (31,105) | 540 | (30,565) | ||
Balance (in shares) at Dec. 31, 2019 | 1,293,162,504 | 326,509,555 | 1,293,162,504 | 326,509,555 | ||||||||
Balance at Dec. 31, 2018 | $ 10 | $ 3 | 1,727,066 | 16,026 | 1,077,073 | (121,686) | 2,698,492 | 416,255 | 3,114,747 | |||
Balance (in shares) at Dec. 31, 2018 | 981,740,848 | 288,182,976 | ||||||||||
Adoption of ASU | Adoption of ASC326 | $ 0 | (1,469) | (1,469) | (269) | (1,738) | |||||||
Issuance of Huya's common shares for exercised share options | 0 | (36) | (5) | (41) | 129 | 88 | ||||||
Issuance of common shares for vested restricted shares and restricted share units | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | 12,363,420 | 0 | ||||||||||
Issuance of common shares in connection with the acquisition of Bigo | 0 | |||||||||||
Net forfeiture of restricted shares | $ 0 | |||||||||||
Net forfeiture of restricted shares (in shares) | (13,886) | |||||||||||
Share-based compensation | $ 0 | 0 | 0 | 111,204 | 0 | 0 | 0 | 111,204 | 13,154 | 124,358 | ||
Appropriation to statutory reserves | 0 | 0 | 0 | 0 | 4,445 | (4,445) | 0 | 0 | 0 | 0 | ||
Repurchase of common stock | $ 0 | 0 | (115,816) | 12,231 | 0 | 0 | 0 | (103,585) | 0 | (103,585) | ||
Repurchase of common stock (in shares) | (33,165,820) | |||||||||||
Repurchase of noncontrolling interest and redeemable noncontrolling interests | 0 | 1,242 | 1,242 | (3,255) | (2,013) | |||||||
Other Equity Changes From Equity Method Investments | 0 | 10,563 | 3,417 | (6,788) | 7,192 | 7,192 | ||||||
Dividends declared | 0 | (67,021) | (67,021) | (333) | (67,354) | |||||||
Deemed contribution from non-controlling interest shareholders | $ 0 | 0 | 0 | 86 | 0 | 0 | 0 | 86 | (86) | 0 | ||
Non-controlling interest arising from an acquisition | 0 | 5,058 | 5,058 | |||||||||
Capital injection in subsidiaries from non-controlling interest shareholders | 0 | 1,500 | 1,500 | |||||||||
Deconsolidation of Huya | 0 | (9,502) | 9,502 | (34,707) | (34,707) | (781,591) | (816,298) | |||||
Deconsolidation of subsidiaries | 0 | 9,502 | (9,502) | 34,707 | 34,707 | 781,591 | 816,298 | |||||
Balance at Dec. 31, 2020 | 13 | 3 | (139,528) | 3,456,844 | 17,825 | 2,881,782 | 18,471 | 6,235,410 | 5,497 | 6,240,907 | ||
Components of comprehensive income | ||||||||||||
Net income (loss) attributable to JOYY Inc. and non-controlling interest shareholders | 0 | 1,372,897 | 1,372,897 | 6,971 | 1,379,868 | |||||||
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | 0 | (5,564) | (5,564) | (244) | (5,808) | |||||||
Foreign currency translation adjustments, net of nil tax | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 215,363 | 215,363 | (2,700) | 212,663 | ||
Balance (in shares) at Dec. 31, 2020 | 1,272,346,218 | 326,509,555 | 1,272,346,218 | 326,509,555 | ||||||||
Balance at Dec. 31, 2019 | $ 13 | $ 3 | (23,712) | 3,321,554 | 22,882 | 1,574,465 | (155,392) | 4,739,813 | 767,163 | 5,506,976 | ||
Balance (in shares) at Dec. 31, 2019 | 1,293,162,504 | 326,509,555 | 1,293,162,504 | 326,509,555 | ||||||||
Adoption of ASU | Adoption of ASU 2020-06 | (299,398) | 86,659 | (212,739) | (212,739) | ||||||||
Issuance of common shares for vested restricted shares and restricted share units | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Issuance of common shares for vested restricted shares and restricted share units (in shares) | 3,631,640 | 0 | ||||||||||
Net forfeiture of restricted shares (in shares) | (773,813) | |||||||||||
Share-based compensation | $ 0 | $ 0 | 0 | 31,691 | 0 | 0 | 0 | 31,691 | 0 | 31,691 | ||
Appropriation to statutory reserves | 0 | 0 | 0 | 0 | 8,979 | (8,979) | 0 | 0 | 0 | 0 | ||
Repurchase of common stock | $ 0 | $ 0 | (392,984) | 0 | 0 | 0 | 0 | (392,984) | 0 | (392,984) | ||
Repurchase of common stock (in shares) | (130,309,760) | 0 | ||||||||||
Repurchase of noncontrolling interest and redeemable noncontrolling interests | (63) | (63) | (154) | (217) | ||||||||
Other Equity Changes From Equity Method Investments | 13,267 | (1) | (8,183) | 5,083 | 5,083 | |||||||
Dividends declared | (161,398) | (161,398) | (47) | (161,445) | ||||||||
Capital injection in subsidiaries from non-controlling interest shareholders | (3,357) | (3,357) | 9,313 | $ 5,956 | ||||||||
Transfer from treasury shares to issued common shares for vested restricted share units | 5,788 | (5,788) | ||||||||||
Transfer from treasury shares to issued common shares for vested restricted share units (in shares) | 1,442,020 | 1,442,020 | ||||||||||
Acquisition of subsidiaries | 53,327 | 53,327 | 26,731 | $ 80,058 | ||||||||
Deconsolidation of Huya | (7,148) | (7,148) | ||||||||||
Deconsolidation of subsidiaries | 7,148 | 7,148 | ||||||||||
Balance at Dec. 31, 2021 | $ 13 | $ 3 | (526,724) | 3,246,523 | 26,804 | 2,712,534 | 69,175 | 5,528,328 | 34,137 | 5,562,465 | ||
Components of comprehensive income | ||||||||||||
Net income (loss) attributable to JOYY Inc. and non-controlling interest shareholders | 0 | 0 | 0 | 0 | 0 | (80,293) | 0 | (80,293) | (13,691) | (93,984) | ||
Accretion of subsidiaries' redeemable convertible preferred shares to redemption value | $ 0 | $ 0 | 0 | 0 | 0 | (5,236) | 0 | (5,236) | (102) | (5,338) | ||
Foreign currency translation adjustments, net of nil tax | 58,887 | 58,887 | (558) | 58,329 | ||||||||
Balance (in shares) at Dec. 31, 2021 | 1,146,336,305 | 326,509,555 | 1,146,336,305 | 326,509,555 | ||||||||
Balance at Dec. 31, 2020 | $ 13 | $ 3 | $ (139,528) | $ 3,456,844 | $ 17,825 | $ 2,881,782 | $ 18,471 | $ 6,235,410 | $ 5,497 | $ 6,240,907 | ||
Balance (in shares) at Dec. 31, 2020 | 1,272,346,218 | 326,509,555 | 1,272,346,218 | 326,509,555 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | |||
Foreign currency translation adjustments, tax portion | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income (loss) | $ (93,984) | $ 1,379,868 | $ 546,598 |
Net income from discontinued operations | (35,567) | (1,401,670) | (615,268) |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation of property and equipment | 108,686 | 77,464 | 40,022 |
Amortization of acquired intangible assets and land use rights | 67,233 | 109,422 | 101,491 |
Amortization of right-of-use assets | 7,009 | 16,492 | 11,353 |
Expected credit loss of receivables | 5,206 | 9,392 | 24,605 |
Loss on disposal of property and equipment, intangible assets and other long-term assets | 366 | 2,776 | 169 |
Impairment of investments | 93,632 | 6,186 | 8,870 |
Impairment of property and equipment | 0 | 0 | 760 |
Impairment of intangible assets | 0 | 0 | 435 |
Share-based compensation | 33,382 | 92,160 | 76,356 |
Share of (income) loss in equity method investments, net of income taxes | 26,217 | 7,634 | (5,974) |
(Gain) loss on disposal and deemed disposal of investments | 23,762 | (272,281) | 0 |
Gain on disposal of business | (4,959) | 0 | (11,754) |
Cash dividend received from equity investees | 6,953 | 347 | 0 |
Deferred income taxes, net | (9,805) | 12,616 | (19,719) |
Foreign currency exchange (gains) losses, net | 13,377 | 17,472 | (1,295) |
Interest expense | 9,158 | 64,520 | 30,658 |
Investment (income) loss | (3,630) | 2,785 | (4,167) |
(Gain) loss on fair value changes of investments | 15,435 | (160,849) | (397,960) |
Loss (gain) on extinguishment of debt and derivative | (5,291) | 6,277 | 2,277 |
Changes in operating assets and liabilities, net of business acquisition and disposal of subsidiaries | |||
Accounts receivable | 28,064 | (55,753) | (16,491) |
Interest receivables recorded in financing receivables | 23 | (368) | (1,991) |
Prepayments and other assets | (8,082) | (32,827) | (23,692) |
Amounts due from related parties | (20,702) | (2,233) | (33,044) |
Lease liabilities | (7,930) | (15,085) | (11,283) |
Amounts due to related parties | 2,761 | 4,379 | 3,297 |
Accounts payable | (18,516) | (11,768) | (3,830) |
Deferred revenue | (3,150) | 38,994 | (1,053) |
Advances from customers | 2,623 | (1,352) | 383 |
Income taxes payable | 3,388 | (3,431) | 8,885 |
Accrued liabilities and other current liabilities | (89,532) | 106,116 | 113,777 |
Net cash (used in) provided by continuing operating activities | 146,127 | (2,717) | (177,585) |
Net cash provided by discontinued operating activities | 64,289 | 497,863 | 843,713 |
Net cash provided by operating activities | 210,416 | 495,146 | 666,128 |
Cash flows from investing activities | |||
Placements of short-term deposits | (1,707,825) | (1,193,968) | (1,609,116) |
Maturities of short-term deposits | 1,483,449 | 1,358,884 | 641,125 |
Placements of short-term investments | (1,970,387) | (909,531) | (700,937) |
Maturities of short-term investments | 1,507,304 | 926,590 | 319,973 |
Placements of derivative financial instruments | (4,211) | 0 | (1,572) |
Purchase of property and equipment | (70,820) | (150,970) | (123,925) |
Purchase of intangible assets and land use right | (114,057) | (1,974) | (6,919) |
Purchase of other non-current assets | (1,600) | (9) | (19,159) |
Prepayments for investments | 0 | 0 | (76) |
Cash paid for investments | (89,681) | (206,559) | (79,645) |
Cash received from disposal of investments | 156,479 | 826,750 | 23,735 |
Cash distribution received from equity investees | 0 | 11,652 | 0 |
Acquisition of businesses, net of cash, cash equivalents and restricted cash acquired | 7,049 | (4,673) | (240,470) |
Deconsolidation and disposal of a subsidiary, net of cash disposed | 0 | 96 | 0 |
Repayments from (payments on behalf of) related parties, net | (4,537) | (333) | 1,780 |
Loans to related parties | (34,203) | (723) | (24,675) |
Repayments of loans from related parties | 449 | 0 | 0 |
Loans to employees and third parties | (9,526) | (8,135) | (6,999) |
Repayments of loans from employees and third parties | 1,776 | 28,938 | 20,707 |
Payments to originate financing receivables | 0 | 0 | (113,128) |
Principal collection from financing receivables | 240 | 13,307 | 216,141 |
Proceeds from disposal of property and equipment | 3,244 | 828 | 305 |
Net cash (used in) provided by continuing investing activities | (846,857) | 690,170 | (1,702,855) |
Net cash (used in) provided by discontinued investing activities | 1,636,450 | 92,371 | (562,834) |
Net cash (used in) provided by investing activities | 789,593 | 782,541 | (2,265,689) |
Cash flows from financing activities | |||
Capital contributions from the non-controlling interest shareholders | 5,508 | 1,526 | 0 |
Capital contributions from mezzanine equity holders | 0 | 0 | 14,592 |
Dividends paid to shareholders | (160,143) | (64,558) | 0 |
Dividend paid to non-controlling interests in a subsidiary | (47) | (326) | 0 |
Purchase of non-controlling interests and redeemable non-controlling interests | (216) | (2,615) | 0 |
Partial disposal of Huya's interests to non-controlling interest shareholders | 0 | 0 | 108,569 |
Purchase of capped call option in relation to repurchase of common shares | 0 | 12,264 | (12,051) |
Proceeds from bank borrowings | 39,676 | 155,708 | 225,040 |
Repayment of bank borrowings | (147,618) | (132,850) | (147,248) |
Repurchase of common shares | (398,637) | (106,024) | (24,395) |
Proceeds from issuance of convertible bonds, net of issuance costs | 0 | 0 | 901,287 |
Repayment of convertible bonds | 0 | 0 | (977) |
Cash paid on extinguishment of convertible bonds | (62,059) | 0 | 0 |
Deemed contribution from Huya | 0 | 141 | 1,469 |
Net cash provided by (used in) continuing financing activities | (723,536) | (136,734) | 1,066,286 |
Net cash provided by discontinued financing activities | 0 | 1,232 | 308,219 |
Net cash provided by (used in) financing activities | (723,536) | (135,502) | 1,374,505 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 276,473 | 1,142,185 | (225,056) |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,819,571 | 652,427 | 874,844 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 38,448 | 24,959 | 2,639 |
Cash, cash equivalents and restricted cash at the end of the year | 2,134,492 | 1,819,571 | 652,427 |
Less: Cash, cash equivalents and restricted cash of held for sales at the end of the year | 0 | 31,600 | 169,764 |
Cash, cash equivalents and restricted cash of continuing operations at the end of the year | 2,134,492 | 1,787,971 | 482,663 |
Supplemental disclosure of cash flows information of continuing operation: | |||
-Cash paid for interest, net of amounts capitalized | (15,485) | (14,324) | (7,762) |
-Income taxes paid | (29,929) | (67,796) | (71,510) |
Supplemental disclosures of non-cash investing and financing activities of continuing operation: | |||
-Acquisition of property and equipment | 10,407 | 15,946 | 16,811 |
-Disposal of investments and business | $ 819 | 0 | 53,251 |
-Common shares issued for the acquisition of Bigo | $ 0 | $ 1,149,076 |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization and principal activities | |
Organization and principal activities | 1. Organization and principal activities (a) Organization and principal activities JOYY Inc. (the “Company” or “JOYY”), together with its subsidiaries, its VIEs (also referred to as VIEs and their subsidiaries as a whole, where appropriate) (collectively, the “Group”), is a leading global social media platform, offering users around the world a uniquely engaging and immersive experience across various video-based products and services, such as live streaming, short-form videos and video communication. In March 2019, the Company completed the acquisition of Bigo Inc (“Bigo”). Bigo is primarily engaged in the video and audio broadcast business all over the world. The Company paid United States dollar (“US$”) 343.1 million in cash and issued 305,127,046 Class A common shares and 38,326,579 Class B common shares of the Company to Bigo’s selling shareholders. The details of this acquisition are disclosed in Note 5(a). On April 3, 2020, the Company signed an agreement with Linen Investment Limited, a wholly owned subsidiary of Tencent Holdings Limited (“Tencent”) to sell its 16,523,819 Class B ordinary shares of HUYA Inc. (NYSE: HUYA) (“Huya”), a subsidiary of the Group, for a cash consideration of approximately US$262.6 million, pursuant to Tencent’s exercise of its option to purchase additional shares of Huya. Upon the closing of the share transfer, the Group held 68,374,463 Class B ordinary shares of Huya, representing approximately 31.2% equity interest and 43.0% of the total voting power calculated based on the total issued and outstanding shares of Huya after this transaction. As a result, Huya ceased to be a subsidiary of the Group and the Group accounted for the investment in Huya using the equity method. The details of this disposal are disclosed in Note 3(b). On August 10, 2020, the Company entered into a definitive share transfer agreement with Linen Investment Limited to sell its 30,000,000 Class B ordinary shares of Huya for a cash consideration of approximately US$810.0 million. Upon the closing of such share transfer, the Company held 38,374,463 Class B ordinary shares of Huya, representing approximately 17.5% equity interest and 24.1% of the total voting power calculated based on the total issued and outstanding shares of Huya after this transaction. On November 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (Nasdaq: BIDU) (“Baidu”). Pursuant to the agreements, Baidu would acquire JOYY’s domestic video-based entertainment live streaming business (“YY Live”), which includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. Out of the total cash consideration of US$3.6 billion, consideration of US$300 million is subject to adjustment based on the achievement of certain conditions of YY Live. Subsequently, the sale was substantially completed on February 8, 2021, with certain customary matters, including necessary regulatory approvals with respect to this transaction from government authorities, remaining to be completed in the future. The details of this disposal are disclosed in Note 3(a). Starting from January 1, 2021, the Company changed its reporting currency from RMB to US$ since a majority of Company's revenues and expenses are now denominated in U.S. dollar after the disposal of YY Live business. The alignment of the reporting currency with the underlying operations better illustrates the Company’s results of operations for each period. The Company has applied the change of reporting currency retrospectively to its financial statements as presented as well as the notes thereto.. (b) Initial Public Offering The Company completed its initial public offering (“IPO”) on November 21, 2012 on the “NASDAQ Global Market”. 1. Organization and principal activities (continued) (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, 2021 are set out below: % of direct Date of or indirect Place of incorporation or economic Name incorporation acquisition ownership 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”) PRC March 19, 2008 100 % Investment holding Guangzhou Huanju Shidai Information Technology Co., Ltd. (“Guangzhou Huanju Shidai”) PRC December 2, 2010 100 % Software development Hago Singapore Pte. Ltd. (“Hago Singapore”) Singapore May 7, 2018 100 % Internet value added services Bigo Cayman Islands March 4, 2019 100 % Investment holding Bigo Technology Pte. Ltd. (“Bigo Singapore”) Singapore March 4, 2019 100 % Investment holding, operation of live streaming platform Bigo (Hong Kong) Limited (“Bigo HK”) Hong Kong March 4, 2019 100 % Investment holding Guangzhou BaiGuoYuan Information Technology Co., Ltd. (“BaiGuoYuan Technology”) PRC March 4, 2019 100 % Software development and provision of information technology services Principal VIEs Guangzhou Huaduo Network Technology Co., Ltd. (“Guangzhou Huaduo”) PRC April 11, 2005 Holder of internet content provider licenses and internet value added services Guangzhou BaiGuoYuan Network Technology Co., Ltd. (“Guangzhou BaiGuoYuan”) PRC March 4, 2019 Holder of internet content provider licenses and internet value added services (d) 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 BaiGuoYuan, which hold the internet value-added service license and approvals to provide such internet services in the PRC. The Company, via its subsidiaries Beijing Huanju Shidai and BaiGuo Yuan Technology, controlled Guangzhou Huaduo and Guangzhou BaiGuo Yuan, respectively, through the exercise of contractual agreements discussed below. Before the disposal of Huya in April 2020, the Group also conducted its operations through its principal VIE, Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”), which holds the internet value-added service license and approvals to provide such internet services in the PRC. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (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, and the amount of service fee is ultimately (unilaterally) determined by Beijing Huanju Shidai. 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 days’ prior written notice to Guangzhou Huaduo. ● 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 2038 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 days’ prior written notice to Guangzhou Huaduo. ● 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. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (i) VIE agreements amongst Beijing Huanju Shidai, Guangzhou Huaduo and its nominee shareholders (continued) ● 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 BaiGuoYuan Technology, Guangzhou BaiGuoYuan and its nominee shareholders The following is a summary of the contractual arrangements entered among BaiGuoYuan Technology, Guangzhou BaiGuoYuan and its nominee shareholders. ● Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement between BaiGuoYuan Technology and Guangzhou BaiGuoYuan, BaiGuoYuan Technology has the exclusive right to provide Guangzhou BaiGuoYuan technology support, business support and consulting services related to the services provided by Guangzhou BaiGuoYuan, the scope and service fees of which is to be determined by BaiGuoYuan Technology from time to time. BaiGuoYuan Technology owns the exclusive intellectual property rights created as a result of the performance of this agreement. BaiGuoYuan Technology receives substantially all of the economic interest returns generated by Guangzhou BaiGuoYuan. The term of this agreement will not expire unless with BaiGuoYuan Technology’s written confirmation to terminate the agreement. ● Exclusive Option Agreement The parties to the exclusive option agreement are BaiGuoYuan Technology, Guangzhou BaiGuoYuan and each of the shareholders of Guangzhou BaiGuoYuan. Under the exclusive option agreement, each of the shareholders of Guangzhou BaiGuoYuan irrevocably granted BaiGuoYuan Technology or its designated representative(s) an exclusive option to purchase, to the extent permitted under the PRC laws, all or part of his or its equity interests in Guangzhou BaiGuoYuan. BaiGuoYuan Technology or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without BaiGuoYuan Technology’s prior written consent, Guangzhou BaiGuoYuan’s shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou BaiGuoYuan. The term of this agreement is ten years and may be extended at BaiGuoYuan Technology’s sole discretion. ● Powers of Attorney Pursuant to the irrevocable power of attorney executed by each shareholder of Guangzhou BaiGuoYuan, each such shareholder appointed BaiGuoYuan Technology as its attorney-in-fact to exercise such shareholders’ rights in Guangzhou BaiGuoYuan, including, without limitation, the power to vote on its behalf on all matters of Guangzhou BaiGuoYuan requiring shareholders’ approval under the PRC laws and regulations and the articles of association of Guangzhou BaiGuoYuan. Each power of attorney will remain in force until the shareholder ceases to hold any equity interest in Guangzhou BaiGuoYuan. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (ii) VIE agreements amongst BaiGuoYuan Technology, Guangzhou BaiGuoYuan and its nominee shareholders (continued) ● Share Pledge Agreement Pursuant to the share pledge agreement between BaiGuoYuan Technology and the shareholders of Guangzhou BaiGuoYuan, the shareholders of Guangzhou BaiGuoYuan have pledged all of their equity interests in Guangzhou BaiGuoYuan to BaiGuoYuan Technology to guarantee the performance by Guangzhou BaiGuoYuan and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement and powers of attorney. If Guangzhou BaiGuoYuan and/or its shareholders breach their contractual obligations under those agreements, BaiGuoYuan Technology, as pledgee, will be entitled to voting right and the right to sell the pledged equity interests. Through the aforementioned contractual agreements, Guangzhou Huaduo, Guangzhou BaiGuoYuan 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, BaiGuoYuan Technology and Huya Technology, respectively, has the ability to: ● exercise effective control over Guangzhou Huaduo, Guangzhou BaiGuoYuan 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. (iii) VIE agreements amongst Huya Technology (defined as below), Guangzhou Huya and its nominee shareholders In 2017, Huya undertook a reorganization (the “Huya Reorganization”) through setting up Guangzhou Huya Technology Co., Ltd. (“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 days’ prior written notice to Guangzhou Huya. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) (iii) VIE agreements amongst Huya Technology, Guangzhou Huya and its nominee shareholders (continued) ● 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 days’ prior written notice to Guangzhou Huya. ● 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 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 and will be automatically extended for one 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”). Guangzhou Huanju Shidai also entered into similar contractual agreements with Guangzhou Xuancheng Network Technology Co., Ltd. (“Guangzhou Xuancheng”), Guangzhou Yueyi Network Technology Partnership (LP) (“Guangzhou Yueyi”), Guangzhou Xuanyi Network Technology Partnership (LP) (“Guangzhou Xuanyi”) and Guangzhou Ruicheng Network Technology Co., Ltd. (“Guangzhou Ruicheng”). Guangzhou Wangxing Information Technology Co., Ltd. (“Guangzhou Wangxing”) also entered into similar contractual agreements with Chengdu Yunbu Network Technology Co., Ltd. (“Chengdu Yunbu”), Chengdu Luota Network Technology Co., Ltd. (“Chengdu Luota”) and Chengdu Jiyue Network Technology Co., Ltd. (“Chengdu Jiyue”). BaiGuoYuan Technology also entered into similar contractual agreements with Guangzhou Shangying Network Technology Co., Ltd. (“Guangzhou Shangying”), Guangzhou Fangu Network Technology Partnership (LP) (“Guangzhou Fangu”), Guangzhou Wanyin Network Technology Partnership (LP) (“Guangzhou Wanyin”) and Guangzhou Qianxuan Network Technology Co., Ltd. (“Guangzhou Qianxuan”). Through these contractual agreements, Beijing Tuda, Guangzhou Xuancheng, Guangzhou Yueyi, Guangzhou Xuanyi, Guangzhou Ruicheng, Chengdu Yunbu, Chengdu Luota, Chengdu Jiyue, Guangzhou Shangying, Guangzhou Fangu, Guangzhou Wanyin and Guangzhou Qianxuan are considered VIEs of the Group. The VIEs disclosed in this paragraph are not material and do not have any significant impact on the Company’s results and financial position. 1. Organization and principal activities (continued) (d) Variable Interest Entities (continued) 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 US$1,088,061 as of December 31, 2021. The VIEs were incorporated as limited liability companies under the PRC Company Law and in accordance with the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the VIEs as the Company does not have direct legal ownership over the VIEs. 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 4(a) for the consolidated financial information of the Group’s VIEs as of December 31, 2021. |
Principal accounting policies
Principal accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Principal accounting policies | |
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, Huya Technology, BaiGuoYuan Technology, Guangzhou Wangxing and ultimately the Company hold all the variable interests of the VIEs and have been determined to be the primary beneficiaries of the VIEs. As a result of the share transfer to Tencent on April 3, 2020, the Group no longer consolidate the results of operations of Huya. The Company deconsolidates its subsidiaries or business in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. 2. Principal accounting policies (continued) (b) Consolidation (continued) The Company accounts for the deconsolidation of its subsidiaries or business 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 assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of contracts with multiple performance obligations (and identification thereof), income taxes, expected credit loss of receivables, determination of share-based compensation expenses, purchase price allocation in a business combination, 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 conditions that affect vesting (and expense recognition), and subsequent adjustments due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, represent critical accounting policies that reflect the 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 US$ as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, British Virgin Islands, Hong Kong, Singapore, United States, India, Egypt and other regions is US$ or their respective local currency, while the functional currency of the other subsidiaries incorporated in PRC is Renminbi (“RMB”). In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use RMB or their respective local currency as their functional currency, have been translated into US$. 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. 2. Principal accounting policies (continued) (e) Cash and cash equivalents and restricted cash Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash, cash equivalents and restricted cash presented on the consolidated statements of cash flows included cash, cash equivalents, restricted cash and restricted cash within restricted short-term deposits in the consolidated balance sheets. (f) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities between three months and one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. (g) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities more 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 Group 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 In June 2016, the FASB issued 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. The Group adopted ASU 2016-13 from January 1, 2020 and maintains an allowance for credit losses in accordance with Topic 326 and records the allowance for credit losses as an offset to accounts receivable. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. The Company using modified-retrospective transition approach with a cumulative-effect adjustment to shareholders’ equity amounting to US$1.7 million recognized as of January 1, 2020. (j) Financing receivables Financing receivables represent receivables derived from finance business, including micro-credit personal loans and corporate loans. Financing receivables are recorded at amortized cost, reduced by a valuation allowance estimated as of the balance sheet date. The amortized cost is equal to the unpaid principal amount, accrued interest receivables and net deferred origination costs. The origination costs are the direct costs attributable to originating the financing charged by third-party companies. The cash flows related to the principal of finance business are included in the investing activities category in the consolidated statement of cash flows. 2. Principal accounting policies (continued) (j) Financing receivables (continued) Micro-credit personal loans The Group provides micro loans to qualified individual borrowers. The micro loan periods granted to the borrowers generally range from one month to twelve months. The Group has ceased to extend credit in our PRC internet micro-financing business since the second half of 2019. Corporate loans The Group provides loans to corporate borrowers mainly through sales-and-leaseback model. Under the sales-and-leaseback arrangement, the Group, who is also the lender, purchases machinery and equipment from lessees, who are also the borrowers, and leases the purchased equipment back to the lessees for a number of years. In a sales-and-leaseback arrangement, the transaction is in substance a collateral financing. The Group has ceased to extend credit in the corporate loans business since 2019. Allowance for financing receivables The Group assesses the allowance for credit losses on financing receivables at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Group adopted ASU 2016-13 from January 1, 2020 and maintains an allowance for credit losses in accordance with Topic 326 and records the allowance for credit losses as an offset to financing receivable. The Company assesses collectability by reviewing financing receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. (k) Investments Equity Investments with Readily Determinable Fair Values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Gains or losses arising from changes in fair value of these investments are recorded in earnings. Equity Investments without Readily Determinable Fair Values After the adoption of this new accounting standard, the Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. 2. Principal accounting policies (continued) (k) Investments (continued) Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment (which would require an adjustment to estimated fair value) 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. Available-for-sale debt investments Available-for-sale debt investment of the Group is a convertible bond issued by a private company that is redeemable at the Group’s option, which is measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of this debt investment are recognized in other comprehensive income (loss). (l) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Residual Estimated useful lives rate Buildings 40 years 0 % Servers, computers and equipment 3-5 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Renovation of buildings 10 years 0 % Motor vehicles 4 years 0%-5 % Furniture, fixture and office equipment 3-5 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. 2. Principal accounting policies (continued) (m) 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 business acquired, the difference is recognized directly in the consolidated statements of comprehensive income. (n) Intangible assets Intangible assets mainly consist of trademark, customer relationships, non-compete agreement, operating rights, software, domain names, technology, license and others. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Trademark 6 - 10 years Customer relationships 3 years Licenses 15 years Non-compete agreement 1 year Operating rights Shorter of the economic life or contract terms Software 1-5 years Domain names 10-15 years Technology 5-6 years Others Shorter of the economic life or contract terms (o) Land use rights Land use rights are carried at cost less accumulated amortization. Amortization of the land use rights is made on straight-line basis over 40 years from the date when the Group first obtained the land use rights certificate from the local authorities. In 2021, the Group entered into an agreement with bank and borrowed loans amounting to US$7.4 million recorded in other non-current liabilities as of December 31, 2021 were pledged by the Group’s land use right amounting to US$256.1 million as of December 31, 2021 to the parcel of land located in Guangzhou and the Group’s entitlement to the rental income from such building. (p) 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 group 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 asset group 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 long-lived assets recorded in general and administrative expenses for the years ended December 31, 2019, 2020 and 2021 were amounting to US$1,195, nil and, nil respectively. 2. Principal accounting policies (continued) (q) 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. (r) Annual test for impairment of goodwill The Group assesses goodwill for impairment in accordance with ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill ("ASC 350-20"), which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. A reporting unit is defined as an operating segment or one level below an operating segment referred to as a component. The Group determines its reporting units by first identifying its operating segments, and then assesses whether any components of these segments constituted a business for which discrete financial information is available and where the Company's segment manager regularly reviews the operating results of that component. The Group determined that it has one reporting unit because components below the consolidated level either did not have discrete financial information or their operating results were not regularly reviewed by the segment manager. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step two to measure the impairment loss. The Group adopted this guidance on a prospective basis on January 1, 2020 with no material impact on its consolidated financial statements and related disclosures as a result of adopting the new standard. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative impairment test in accordance with ASC 350-20. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. As of December 31, 2020 and 2021, the fair value of the Group's reporting unit was substantially greater than the respective carrying value, and therefore goodwill related to the Group's reporting unit was not impaired. (s) Convertible bonds Before January 1, 2021, the Company 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. On January 1, 2021, the Company early adopted ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” using modified-retrospective transition approach. Pursuant to ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. Following the adoption of this guidance, the amount previously allocated to additional paid-in capital was reclassified as a liability and a cumulative effect adjustment of US$86.7 million was credited to retained earnings as of January 1, 2021. 2. Principal accounting policies (continued) (t) Mezzanine equity and non-controlling interests 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 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 a cumulative 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 interests 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. (u) Revenue Revenue recognition and significant judgments Revenues from live streaming are mainly generated from Bigo Live, Likee and Hago platforms. Other revenues are mainly generated from online games, membership, online education, advertising and finance business. Disaggregated revenues are disclosed in Note 33 “Segment Reporting”. Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The 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 without expiry. As the virtual currency is often consumed soon after it is purchased based on history of turnover, the Group considers the impact of the breakage amount for virtual currency coupons is insignificant. 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. 2. Principal accounting policies (continued) (u) Revenue (continued) Revenue recognition and significant judgments (continued) (i) Live streaming Live streaming mainly consists of Bigo Live, Likee and Hago platforms. It generates revenue from sales of virtual items in the platforms. Users can access the platforms and view the live streaming content showed by the performers. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with performers and talent agencies in accordance with their revenue sharing arrangements. Those performers who do not have revenue sharing arrangements with the Group are not entitled to any revenue sharing fee. The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid to performers and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined 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. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as the noble member program. Judgments are required as follow: 1) determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together, 2) determining the standalone selling price for each distinct performance obligation, and 3) allocating of the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. Certain virtual items are provided to customers over time and have the same pattern of transfer to customers. The Group exercises judgement in determining the number of distinct performance obligations by accounting for services that have the same pattern of transfer to customers as a single performance obligation. In instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. As the Group’s live streaming virtual items are generally sold without right of return and the Group does not provide any other credit and incentive to its users, therefore accounting of variable consideration when estimating the amount of revenue to recognize is not applicable to the Group’s live streaming business. (ii) Others Other revenues mainly generated from online games, membership, online education, advertising, finance business and e-commerce business. 2. Principal accounting policies (continued) (u) Revenue (continued) Revenue recognition and significant judgments (continued) (ii) Others (continued) (1) Online games revenues The Group generates revenues from |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued operations | |
Discontinued operations | 3. Discontinued operations (a) Disposal of YY Live business On November 16, 2020, the Company entered into definitive agreements with Baidu to dispose of the YY Live business. As a result, assets and liabilities of this business were classified as assets and liabilities held for sale and the results of YY Live business were presented as discontinued operations, accordingly. The transaction was substantially completed on February 8, 2021 and the Company no longer was able to operate and exert control over the YY Live business, including but not limited to the assets, liabilities, business and employee contracts necessary for the operation of YY Live business. Accordingly, the Company ceased consolidation of the YY Live business since February 8, 2021 and also ceased to present the results of the YY Live business within discontinued operations since that same date. The necessary regulatory approvals with respect to this transaction have not been obtained from government authorities as of the date of this annual report and there is no assurance that they will be ultimately obtained. In August 2021, December 2021 and April 2022, the Company and Baidu have agreed to extend the long stop date of the proposed acquisition to a date mutually agreed upon by the parties. As a result of the pending regulatory approvals discussed above, the Company did not recognize any gain from the transaction up to December 31, 2021. Instead, the Company has classified and presented all the related assets and liabilities related to YY Live business amounting to US$38,194 on a net basis within prepayments and other current assets (Note 11). The total consideration of the transaction is approximately US$3.6 billion in cash and subject to certain adjustments. The Company received part of the consideration amounting to US$1.9 billion by December 31, 2021, which was recorded as advance payments received within accrued liabilities and other current liabilities (Note 18). If the transaction is ultimately closed, the Company will recognize the gain related to the disposal of YY Live business transaction. Should the transaction ultimately be terminated and unwound, the return of the advance prepayment would be expected, the details of which would be subject to further discussion of both parties. 3. Discontinued operations (continued) (a) Disposal of YY Live business (continued) The following tables set forth the assets, liabilities, statement of operations and cash flows of discontinued operations which were included in the Group’s consolidated financial statements. The assets and liabilities as of December 31, 2020 shown below are recorded as assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheet. The net amount of the assets and liabilities as of December 31, 2021 shown below are recorded within prepayments and other current assets in the consolidated balance sheet. As of December 31, 2020 2021 US$ US$ Assets Current assets Cash and cash equivalents 31,600 201,393 Accounts receivable, net 15,481 18,239 Prepayments and other current assets 5,447 4,986 Total current assets 52,528 224,618 Non-current assets Deferred tax assets 5,238 4,294 Property and equipment, net 9,180 10,356 Intangible assets, net 7,363 7,456 Other non-current assets 3,719 3,814 Total non-current assets 25,500 25,920 Total assets 78,028 250,538 Liabilities Current liabilities Accounts payable — 1,117 Deferred revenue 50,070 49,495 Advances from customers 12,377 12,663 Income taxes payable 3,221 9,787 Accrued liabilities and other current liabilities 113,441 139,282 Total current liabilities 179,109 212,344 Non-current liabilities Deferred revenue 4,415 — Total non-current liabilities 4,415 — Total liabilities 183,524 212,344 3. Discontinued operations (continued) (a) Disposal of YY Live business (continued) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net revenues Live streaming 1,554,947 1,399,212 151,445 Others 34,919 41,363 2,980 Total net revenues 1,589,866 1,440,575 154,425 Cost of revenues (1) (827,266) (773,988) (88,900) Gross profit 762,600 666,587 65,525 Operating expenses (1) Research and development expenses (56,874) (52,519) (6,323) Sales and marketing expenses (73,487) (84,303) (8,954) General and administrative expenses (28,779) (22,116) (7,108) Total operating expenses (159,140) (158,938) (22,385) Other income 29,414 23,935 611 Operating income 632,874 531,584 43,751 Interest income and investment income 355 419 355 Income before income tax expenses 633,229 532,003 44,106 Income tax expenses (85,617) (49,516) (8,539) Net income from discontinued operations 547,612 482,487 35,567 For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net cash provided by discontinued operating activities 559,878 478,357 64,289 Net cash (used in) provided by discontinued investing activities (27,981) 6,819 1,636,450 * (1) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Cost of revenues 1,256 1,645 (426) Research and development expenses 8,271 6,656 (703) Sales and marketing expenses 261 189 (39) General and administrative expense 10,593 4,928 (175) 3. Discontinued operations (continued) (b) Disposal of Huya On April 3, 2020, the Group sold certain of its equity interests of Huya to a wholly owned subsidiary of Tencent following Tencent’s exercise of its purchase option on April 3, 2020. As a result, Huya ceased to be a subsidiary of the Group and the Group accounted for remaining the investment in Huya using the equity method. Upon completion of the transaction, Huya was deconsolidated from the Group. As a result, Huya’s historical financial results before April 3, 2020 are reflected in the Group’s consolidated financial statements as discontinued operations accordingly. Immediately before the disposal, the Group held 38.7% and 53% of equity interests and voting power of Huya, respectively. Immediately after the disposal, the Group held 31.2% and 43% of equity interests and voting power of Huya, respectively. Pre-tax income of Huya from the date of disposal to December 31, 2020 and for the year ended December 31, 2021 were US$119,428 and US$39,429, respectively. Share of income (loss) from the equity investment in Huya from date of disposal to December 31, 2020 and for the year ended December 31, 2021 were US$2,431 and US$7,855, respectively, which were recorded within “share of income (loss) in equity method investments, net of income taxes” in the consolidated financial statements. 3. Discontinued operations (continued) (b) Disposal of Huya (continued) The following tables set forth the statement of operations and cash flows of discontinued operations which were included in the Group’s consolidated financial statements (in thousands): For the year ended December 31, 2019 2020 US$ US$ Net revenues Live streaming 1,155,066 326,094 Others 57,634 19,707 Total net revenues 1,212,700 345,801 Cost of revenues (1) (998,289) (277,954) Gross profit 214,411 67,847 Operating expenses (1) Research and development expenses (73,527) (22,477) Sales and marketing expenses (63,510) (15,279) General and administrative expenses (51,156) (20,743) Total operating expenses (188,193) (58,499) Other income 11,500 1,624 Operating income 37,718 10,972 Interest income and investment income 44,076 12,293 Foreign currency exchange gains (losses), net 166 (205) Gain on fair value changes of investments — 310 Other non-operating expenses (1,435) Income before income tax expenses 81,960 21,935 Income tax expenses (13,910) (5,384) Net income 68,050 16,551 Share of income in equity method investments, net of income taxes (394) (145) Gain on disposal, net of tax — 902,777 Net income from discontinued operations 67,656 919,183 For the year ended December 31, 2019 2020 US$ US$ Net cash provided by discontinued operating activities 283,835 19,506 Net cash (used in) provided by discontinued investing activities (534,853) 85,552 Net cash provided by discontinued financing activities 308,219 1,232 3. Discontinued operations (continued) (b) Disposal of Huya (continued) (1) For the year ended December 31, 2019 2020 US$ US$ Cost of revenues 4,545 2,354 Research and development expenses 12,433 5,309 Sales and marketing expenses 852 375 General and administrative expenses 22,969 13,558 (c) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net income from discontinued operations of YY Live (Note 3(a)) 547,612 482,487 35,567 Net income from discontinued operations of Huya (Note 3(b)) 67,656 919,183 — Net income from discontinued operations as presented in the consolidated statements of comprehensive income 615,268 1,401,670 35,567 |
Certain risks and concentration
Certain risks and concentration | 12 Months Ended |
Dec. 31, 2021 | |
Certain risks and concentration | |
Certain risks and concentration | 4. 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%. Foreigners or foreign invested enterprises are currently not able to apply for the required licenses for operating online games in the PRC. The Company is incorporated in the Cayman Islands and accordingly, the Company is considered as a foreign invested enterprise under PRC law. 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, Guangzhou Huya and Guangzhou BaiGuoYuan. In January 2021, Mr. David Xueling Li and other nominal shareholder transferred in total 100% of the nominee shares of Guangzhou BaiGuoYuan to Guangzhou Qianxun Network Technology Co., Ltd. (“Guangzhou Qianxun”), a VIE of the Company. In Feburary 2021, Beijing Tuda and Mr. David Xueling Li transferred their respective nominee shares in Guangzhou Huaduo to Guangzhou Tuyue Network Technology Co., Ltd. (“Guangzhou Tuyue”), a VIE of the Company. As of December 31, 2021, Guangzhou Tuyue holds the majority of nominee shares of Guanghzou Huaduo., and Guangzhou Qianxun holds 100% of the nominee shares of Guangzhou BaiGuoYuan. 4. Certain risks and concentration (continued) (a) PRC regulations (continued) Guangzhou Huaduo, Guangzhou Huya and Guangzhou BaiGuoYuan hold the licenses and permits necessary to conduct its internet value-added services 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 For the years ended December 31, 2019, 2020 and 2021, the Company’s wholly owned subsidiaries, mainly including Beijing Huanju Shidai, BaiGuoYuan Technology and Huya Technology, determined the service fees which were charged to the Group’s VIEs, respectively. Huya Technology ceased to be a subsidiary of the Company upon the disposal of Huya on April 3, 2020. Further, the Group believes that the contractual arrangements among the Company’s subsidiaries (mainly including Beijing Huanju Shidai, BaiGuoYuan Technology and Huya Technology), the VIEs, and the VIE’s shareholders are in compliance with PRC laws and are legally enforceable and binding. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIEs were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. 4. Certain risks and concentration (continued) (a) PRC regulations (continued) In March 2019, the National People’s Congress enacted PRC Foreign Investment Law which would be effective starting from January 1, 2020. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment,” which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. Existing laws or administrative regulations remain unclear whether the contractual arrangements with variable interest entities will be deemed to be in violation of the market access requirements for foreign investment under the PRC laws and regulations. However, the possibility that such entities will be deemed as foreign invested enterprise and subject to relevant restrictions in the future shall not be excluded. If VIEs fall within the definition of foreign investment entities, the Group’s ability to use the contractual arrangements with its VIEs and the Group’s ability to conduct business through the VIEs could be severely limited. The Group’s ability to control the VIEs also depends on the power of attorney that the wholly owned subsidiary of the Group has to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Group believes these power of attorney are legally enforceable but may not be as effective as direct equity ownership. In addition, if the Group’s corporate structure and the contractual arrangements with the VIEs through which the Group conducts its business in the PRC were found to be in violation of any existing or future PRC laws and regulations, the Group’s relevant PRC regulatory authorities could: ● revoke or refuse to grant or renew the Group’s business and operating licenses; ● restrict or prohibit related party transactions between the wholly owned subsidiary of the Group and the VIE; ● impose fines, confiscate income or other requirements which the Group may find difficult or impossible to comply with; ● require the Group to alter, discontinue or restrict its operations; ● restrict or prohibit the Group’s ability to finance its operations, and; ● take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIEs, which may result in deconsolidation of the VIEs in the Group’s consolidated financial statements. In the opinion of management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group’s operations depend on the VIEs to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those arrangements. 4. Certain risks and concentration (continued) (a) PRC regulations (continued) The following consolidated financial information of the Group’s VIEs and VIEs’ subsidiaries was included in the accompanying consolidated financial statements. For purposes of this presentation, activity within and between the VIEs and VIEs’ subsidiaries have been eliminated, but transactions with other entities within the Group have been included without elimination. Presentation of the comparative data for 2019 and 2020 have been expanded to conform to the current year presentation. December 31, 2020 2021 US$ US$ Assets Current assets Cash and cash equivalents 248,300 433,405 Restricted cash and cash equivalents 536 7,364 Short-term deposits 669,742 308,986 Restricted short-term deposits 30,652 — Short-term investments 266,647 288,944 Accounts receivable, net 25,885 5,880 Amounts due from Group companies 364,025 263,373 Amounts due from related parties 1,704 9,684 Financing receivables, net 50 — Prepayments and other current assets 55,593 101,173 Assets held for sale 75,839 — Total current assets 1,738,973 1,418,809 Non-current assets Investments 381,867 235,277 Property and equipment, net 156,494 171,831 Land use rights, net 258,770 370,052 Intangible assets, net 84,236 58,893 Right of use asset, net 6,461 4,911 Other non-current assets 6,151 1,055 Assets held for sale 19,896 — Total non-current assets 913,875 842,019 Total assets 2,652,848 2,260,828 Liabilities Current liabilities Accounts payable 16,045 14,200 Deferred revenue 17,140 13,873 Advances from customers 29 1,242 Income taxes payable 19,492 25,606 Accrued liabilities and other current liabilities 108,450 114,325 Amounts due to Group companies 151,073 131,887 Amounts due to related parties 2,274 1,024 Lease liabilities due within one year 4,702 3,077 Short-term loans 102,538 — Liabilities held for sale 178,744 — Total current liabilities 600,487 305,234 Non-current liabilities Lease liabilities 1,982 2,096 Deferred revenue 1,487 3,849 Deferred tax liabilities 10,866 9,105 Other non-current liabilities — 7,372 Liabilities held for sale 4,415 — Total non-current liabilities 18,750 22,422 Total liabilities 619,237 327,656 4. Certain risks and concentration (continued) (a) PRC regulations (continued) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net revenues from Group companies 29,581 79,609 109,618 Net revenues from third parties 283,044 396,343 447,471 Cost of sales from Group companies (80,739) (216,696) (60,053) Cost of sales from third parties (200,860) (298,715) (347,674) Total operating expenses (232,406) (514,889) (293,959) Other items of the consolidated statements of comprehensive income 31,035 23,244 22,305 Net loss from continuing operations (170,345) (531,104) (122,292) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net cash provided by (used in) operating activities with Group companies (31,178) (344,858) 77,319 Net cash (used in) provided operating activities with third parities (31,422) (73,830) 153,715 Net cash used in investing activities with Group companies (84,393) (104,111) (35,559) Net cash provided by (used in) investing activities with third parities (546,963) (47,787) 170,112 Net cash provided by (used in) financing activities with Group companies (51,848) 25,219 5,378 Net cash provided by (used in) financing activities with third parities 39,458 21,690 (97,198) (706,346) (523,677) 273,767 Transactions between the VIE and other entities in the consolidated group For the years ended December 31, 2019, 2020 and 2021, the VIEs earned inter-company revenues from sales of software in the amounts of nil, US$24,523 and nil, respectively. In addition, the VIEs recognized inter-company cost of revenues and operating expenses in the amounts of US$54,044, US$41,832 and US$80,402 for the years ended December 31, 2019, 2020 and 2021, respectively for the purchase of software. The VIEs also recognized inter-company cost of revenues and operating expenses in the amounts of US$77,682, US$447,271 and US$35,899 for the years ended December 31, 2019, 2020 and 2021, respectively for technical support services. All of these balances and transactions have been eliminated in consolidation. Unsettled balance related to technology service fees payable by VIEs to other group entities amounted to US$121,376 and US$66,811 as of December 31, 2020 and 2021, respectively. Cash flows between the VIE and other entities in the consolidated group For the years ended December 31, 2019, 2020 and 2021, cash paid by the VIEs to Group companies for the settlement of software transactions were US$43,829, US$53,696 and US$62,499, respectively. For the years ended December 31, 2019, 2020 and 2021, cash paid by the VIEs to Group companies for the settlement of technical support fees were US$57,474, US$369,897 and US$52,119, respectively. For the years ended December 31, 2019, 2020 and 2021, cash received by VIEs from Group companies were US$26,297, US$25,039 and US$129,440, respectively, for the revenues earned from Group companies. All of these cash flows have been eliminated in consolidation. (b) Foreign exchange risk The Group’s overseas operations and related investing and financing activities are denominated in US$. The revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. 4. Certain risks and concentration (continued) (c) Credit risk Assets that potentially expose the Group to credit risk primarily consist of cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits, short-term investments, accounts receivable, financing receivables, amounts due from related parties and prepayments and other current assets. As of December 31, 2020 and 2021, substantially all of the Group’s cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted 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, 2019, 2020 and 2021 and believes that its credit risk to be minimal. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on the payment platforms, game platforms, customers and the ongoing monitoring process of outstanding balances. The Group is exposed to default risk on its financing receivables. The Group conducts credit evaluations of customers in finance business, either on an individual or collective basis. The Group also considers the value of collateral assets when assessing the collectability of certain financing receivables. Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. Amounts due from related parties, prepayments and other current assets are typically unsecured. In evaluating the collectability of the balance, the Group considers many factors, including the related parties and third parties’ repayment history and their credit-worthiness. An allowance for doubtful accounts is made when collection of the full amount is no longer probable. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Business combination | 5. Business combination (a) Acquisition of Bigo Immediately prior to this acquisition, the Company held 31.7% of equity interest of Bigo, a company which is primarily engaged in the video and audio broadcast business through its live-streaming applications and platforms all over the world. The Company had a contingent redemption right on its investment in Bigo, therefore the interest held by the Company did not meet the definition of in-substance common stock under ASC 323. As the investment in Bigo did not have readily determinable fair value, it was accounted for as an investment at cost less impairments, adjusted by observable price changes. In February 2019, the Group entered into a share purchase agreement with Bigo and its shareholders and the transaction was completed on March 4, 2019. Under the agreement, the Group agreed to purchase all outstanding shares of Bigo that were not already owned by the Group. Pursuant to the agreement, the Company paid US $343.1 million in cash and issued 305,127,046 Class A common shares, which were outstanding, and 38,326,579 Class B common shares of the Company to Bigo’s selling shareholders. In addition, the Company has also issued 8,761,450 Class A common shares for future grants to employees as share-based awards. The acquisition was completed on March 4, 2019 and is accounted for as a business combination. The Group believed that the acquisition of Bigo helped the Group create enhanced live streaming content, expand global footprint and offer world-class user experiences for global user community. Upon the completion of the acquisition, Bigo became a wholly-owned subsidiary of the Group. The following table summarizes the components of the purchase consideration transferred based on the closing price of the Company’s common share as of the acquisition date: As of acquisition date US$ Cash 343,062 Fair value of common shares issued 1,149,073 Fair value of previously held equity interest in Bigo 849,700 Elimination of preexisting amounts due from Bigo 48,174 Total consideration 2,390,009 The fair value of common shares issued above does not include post-acquisition share-based compensation amounting to US$88,047. Out of the 305,127,046 Class A common shares issued and outstanding, 38,042,760 shares are for the replacement awards to Bigo’s employees to replace their original share-based awards. The post-acquisition share-based compensation of US$88,047 are share-based compensation subject to continuous employment and will be recognized as share-based compensation expenses over the remaining required service period. Immediately before the acquisition, the amounts due from Bigo to the Company amounted to US$48,174. This amount due from Bigo was effectively eliminated upon the acquisition. The amount of the preexisting amounts due from Bigo of US$48,174 was included as part of the consideration. In accordance with ASC 805, the Company’s previously held equity interest in Bigo was re-measured to fair value on the acquisition date, and a re-measurement gain of US$396,094 was recognized as gain on fair value changes of investments. Acquisition-related costs of US$4,036 was recognized as general and administrative expenses. 5. Business combination (continued) (a) Acquisition of Bigo (continued) The acquisition was accounted for as a business combination. The Group made estimates and judgements in determining the fair value of the assets acquired and liabilities assumed with the assistance from an independent valuation firm. The consideration was allocated on the acquisition date as follows: As of acquisition date Amortization period US$ Net tangible assets acquired: -Cash and cash equivalents, restricted cash and cash equivalents and restricted short-term deposits 95,965 -Accounts receivables 57,647 -Other current assets 7,820 -Property and equipment, net 43,853 -Other non-current assets 26,076 Identifiable intangible assets acquired: -Trademark 358,000 10 years -Customer relationships 153,200 3 years -Non-compete agreement 12,100 1 year -Others 924 Accrued liabilities and other liabilities (172,539) Deferred tax liabilities (47,258) Goodwill 1,854,221 Total 2,390,009 The Company estimated the fair value of acquired trademark using the relief from royalty method. The value is estimated as the present value of the after-tax cost savings at an appropriate discount rate. In terms of the fair value of the acquired customer relationships, the excess earnings method was used. The value is estimated as the present value of the revenues calculated at an appropriate discount rate. The Company’s determination of the fair values of acquired trademark and customer relationships acquired involved the use of estimates and assumptions related to revenue growth rates, royalty rates, discount rates and attrition rates. The goodwill was mainly attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and mainly comprised (a) the assembled work force and (b) the expected future growth, enhancing world-class user experiences and expansion in global markets as a result of the synergy resulting from the acquisition. The goodwill recognized was not expected to be deductible for income tax purpose. 5. Business combination (continued) (a) Acquisition of Bigo (continued) Pro forma information of the acquisition The following unaudited pro forma information summarizes the results of operations for the year ended December 31, 2019 of the Company as if the acquisition had occurred on January 1, 2019. The unaudited pro forma information includes: (i) amortization associated with estimates for the acquired intangible assets and corresponding deferred tax liability; (ii) recognition of the post-combination share-based compensation; (iii) removal of the transaction costs related to the acquisition; (iv) removal of the remeasurement gain of JOYY’s previously held interests in Bigo; (v) removal of fair value loss on derivative liabilities related to Bigo’s preferred shares; (vi) elimination of transaction between Bigo and the Company and (vii) the associated tax impact on these unaudited pro forma adjustments. The following pro forma financial information is presented for informational purpose only and is not necessarily indicative of the results that would have occurred had the acquisition been completed on January 1, 2019, nor is it indicative of future operating results. For the year ended December 31, 2019 US$ Pro forma net revenues 998,828 Pro forma net loss (498,127) The amounts of revenues and earnings of Bigo since the acquisition date are disclosed in Note 33 “Segment Reporting”. (b) Other acquisition During the second quarter 2021, the Company completed the acquisition of additional equity interests of an acquiree which is a global online platform operating on online for comics and novels whose major operations and users are outside of China. The consideration for this acquisition was settled by cash of US$9.6 million and transfer of approximately 19% equity interests in a previously wholly owned subsidiary of the Company which operates a multiuser social networking platform outside of China, to the original shareholders the acquiree. The Company held 25% of equity interests in this acquiree before the acquisition and the fair value of the previously held equity interest is considered part of the consideration of the acquisition. Upon completion of the transaction, the Company’s interest in the acquiree increased from 25% to 81% and started to consolidate the acquiree as a subsidiary with non-controlling interests. The following table summarizes the components of the purchase consideration transferred based on the closing price of the Company’s common share as of the acquisition date: As of acquisition date US$ Cash 9,611 Fair value of subsidiary’s common share issued 53,810 Fair value of previously held equity interest in the acquiree 27,716 Total consideration 91,137 5. Business combination (continued) (b) Other acquisition (continued) The acquisition was accounted for as a business combination. The Group made estimates and judgements in determining the fair value of the assets acquired and liabilities assumed with the assistance from an independent valuation firm. The consideration was allocated on the acquisition date as follows: As of acquisition date Amortization period US$ Net tangible assets acquired: -Cash and cash equivalents 7,296 -Accounts receivables 1,376 -Other current assets 1,987 -Property and equipment, net 142 Identifiable intangible assets acquired: -Technology 11,917 6 years -Trademark 11,839 6 years -Customer relationships 903 3 years Accounts payable (2,268) Accrued liabilities and other liabilities (1,579) Deferred tax liabilities (4,069) Goodwill 84,925 Non-controlling interests (21,332) Total 91,137 The Company estimated the fair value of acquired technology using the excess earnings method. The value is estimated as the present value of the revenues calculated at an appropriate discount rate. In terms of the fair value of the acquired trademark, the relief from royalty method was used. The value is estimated as the present value of the after-tax cost savings at an appropriate discount rate. The Company’s determination of the fair values of acquired technology and trademark acquired involved the use of estimates and assumptions related to revenue growth rates, royalty rates, discount rates and attrition rates. The goodwill was mainly attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S. GAAP, and mainly comprised the assembled work force and the synergy resulting from the acquisition. The goodwill recognized was not expected to be deductible for income tax purpose. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | |
Cash and cash equivalents | 6. Cash and cash equivalents and restricted cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with original maturities of three months or less. Cash and cash equivalents balance as of December 31, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 US$ US$ Amount equivalent Amount equivalent US$ 1,306,404 1,306,404 1,220,064 1,220,064 RMB 2,691,718 412,530 3,462,640 543,099 Others N/A 23,815 N/A 74,022 Total 1,742,749 1,837,185 As of December 31, 2020 and 2021, the Group's restricted cash and cash equivalents were US$13,733 and US$297,022, respectively. The increase in restricted cash and cash equivalents as of December 31,2021 compared to December 31, 2020 was mainly attributable to a portion of the consideration which was received from Baidu and deposited in an escrow accounts owned by the Group, in accordance with the terms set forth in the agreement with Baidu to dispose YY Live business. |
Short-term deposits
Short-term deposits | 12 Months Ended |
Dec. 31, 2021 | |
Short-term deposits | |
Short-term deposits | 7. Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities between three months and one year.The term deposits balance as of December 31, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 US$ US$ Amount equivalent Amount equivalent RMB 4,470,002 685,068 2,170,000 340,355 US$ 640,000 640,000 1,263,843 1,263,843 Total 1,325,068 1,604,198 |
Restricted short-term deposits
Restricted short-term deposits | 12 Months Ended |
Dec. 31, 2021 | |
Restricted short-term deposits | |
Restricted short-term deposits | 8. Restricted short-term deposits As of December 31, 2020, the Group’s restricted short-term deposits were US$31,489, which was mainly pledged as collateral for the banking facilities of US$31million. As of December 31, 2021, the Group’s restricted short-term deposits were US$285, which was deposits for opening credit card accounts. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable, net | |
Accounts receivable, net | 9. Accounts receivable, net December 31, 2020 2021 US$ US$ Accounts receivable, gross 150,386 126,798 Less: allowance for expected credit loss of receivables (7,387) (12,426) Accounts receivable, net 142,999 114,372 The following table summarizes the details of the Group’s allowance for doubtful accounts: For the year ended December 31, 2019 2020 2021 US$ US$ US$ Balance at the beginning of the year (1,081) (9) (7,387) Adoption of ASC326 — (652) — Additions charged to general and administrative expenses, net (13) (6,726) (5,039) Write-off during the year 1,085 — — Balance at the end of the year (9) (7,387) (12,426) |
Financing receivables, net
Financing receivables, net | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable, net | |
Financing receivables, net | 10. Financing receivables, net Financing receivables consist of the following: December 31, 2020 2021 US$ US$ Financing receivables, gross Micro-credit personal loans 19,971 20,317 Corporate loans 30,031 — Total 50,002 20,317 Less: allowance for expected credit loss on financing receivables (30,114) (20,317) Financing receivables, net 19,888 — Current portion 172 — Non-current portion 19,716 — As of December 31, 2020 and 2021, micro-credit personal loans were not guaranteed. The following table presents the aging of gross financing receivables as of December 31, 2020 and 2021. 1-90 days 91-180 days 181-360 days over 1 year Total Total financing past due past due past due past due past due Current receivables December 31, 2020 Micro-credit personal loans (1) — 4 3,185 16,782 19,971 — 19,971 Corporate loans (2) — — — 29,908 29,908 123 30,031 — 4 3,185 46,690 49,879 123 50,002 December 31, 2021 Micro-credit personal loans (1) — — — 20,317 20,317 — 20,317 Allowance for expected credit loss for the Group’s financing receivables of US$24,811, US$676 and reversal of allowance for expected credit loss of US$70 was recognized in general and administrative expenses for the year ended December 31, 2019, 2020 and 2021, respectively. (1) Micro-credit personal loans Micro-credit personal loans provided by the Group are non-accrual financing receivables related to personal loans amounted to US$19,971 and US$20,317 as of December 31, 2020 and 2021, respectively, and were past due for over 90 days. 10. Financing receivables, net (continued) (2) Corporate loans A majority of the Group's corporate loan business was in the form of sale-and-leaseback arrangements, under which the Group purchases equipment from third party companies and lease back the equipment to the sellers. In 2019, one lessee was unable to repay the principal amount of approximately US$2,416 due in January and was default. The Group has brought certain lawsuits against this lessee to the court, claiming the lessee to repay all the outstanding amount. Upon the date of the issuance of the consolidated financial statements for the year ended December 31, 2019, the court has passed the first instance judgement on all of these lawsuits, which supported the Group's claim and ordered the lessee to repay all the outstanding amounts due to the Group. Furthermore, the additional assets of the lessee or its related entity was pledged and preserved as collateral. Based on the Group’s assessment on the lessee’s finance condition and the recoverable amount from the collateral, the financial receivable cannot be fully recovered. As a result, an allowance for expected credit loss of US$10,430 was recognized in general and administrative expenses for the year ended December 31, 2019 against the carrying value of the financing receivables. In 2020 and 2021, based on the Group’s assessment on the fair value of the pledged assets as of December 31, 2020 and 2021, no further impairment charge was recognized against the carrying value of the financing receivables for the year ended December 31, 2020 and 2021. The Group reclassified the amount due from this lessee from financing receivables to prepayments and other current assets in 2021 considering the fact that the original term of this receivable has ended by December 31, 2021 and the nature of this receivable has changed from financing receivables to other receivables as the expected means of settlement of the receivable has changed. Net amount of the receivable as of December 31, 2021 reclassified to prepayment and other current assets was US$20,177, which is the difference between the gross amount of US$30,607 and allowance of US$10,430 as of December 31, 2021. The Group has ceased the corporate loan business during 2019. The financing receivable was placed on non-accrual status. The Group has decided not to further develop corporate loan business so as to avoid further potential risk arising from such business. Movement of allowance for expected credit loss on financing receivables (micro-credit personal loans only) is as follows: For the year ended December 31, 2020 2021 US$ US$ Balance at the beginning of the year (26,772) (30,114) Adoption of ASC326 (724) — Addition for the year (2,618) (633) Reclassification to prepayments and other current assets — 10,430 Balance at the end of the year (30,114) (20,317) |
Prepayments and other current a
Prepayments and other current assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and other current assets | |
Prepayments and other current assets | 11. Prepayments and other current assets December 31, 2020 2021 US$ US$ Interests receivable 36,004 22,082 Value added taxes to be deducted 19,326 28,090 Receivables from payment platforms 13,633 24,512 Employee advances 3,692 4,073 Prepayments and deposits to vendors and content providers 6,547 6,126 Deposits 5,611 5,831 Loans to third parties 99 7,604 Amount due from a lessee of sale-and-leaseback arrangement - net (Note 10) — 20,177 Net assets subject to disposal related to YY Live (Note 3(a)) — 38,194 Others 17,960 57,044 Total 102,872 213,733 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments | |
Investments | 12. Investments December 31, 2020 2021 US$ US$ Equity investments accounted for using the equity method (i) 832,143 850,557 Equity investments with readily determinable fair values (ii) 184,968 25,480 Equity investments without readily determinable fair values (iii) 221,243 146,418 Available-for-sale debt investment (iv) 1,000 — Total 1,239,354 1,022,455 (i) Investments have been accounted for under the equity method where the Group has significant influence on these investees and the investments are considered as in-substance common shares. In 2020 and 2021, the Group acquired minority stakes in a number of privately-held entities with total consideration of US$87,212 and US$56,336, respectively. Increase in the amounts of investments in 2020 was mainly attributable to the Group’s investment in Huya. On April 3, 2020, Huya ceased to be a subsidiary of the Company and the Company deconsolidated its related interest and recognized its investment in Huya as an equity method investment (Note 3(b)). The Company further disposed of certain equity interest in Huya in August 2020 (Note 1(a)) and also deem-disposed of certain interest of Huya’s equity interest as a result of the vesting of Huya’s share-based awards, resulting in a net gain from the disposal and deemed disposal of approximately US$258,564 in 2020 and a net loss from the deemed disposal of approximately US$5,450 in 2021. 12. Investments (continued) The following tables set forth the summarized financial information of the Group’s equity method investments: December 31, 2020 2021 US$ US$ Current assets 1,948,075 2,223,447 Non-current assets 302,915 552,085 Current liabilities 447,148 601,688 Non-current liabilities 42,817 39,719 For the year ended December 31, 2019 2020 2021 US$ US$ US$ Revenues 110,099 1,405,623 2,082,821 Gross profit 91,040 386,810 466,970 Net income (loss) 31,970 23,563 (81,953) Net income (loss) attributable to the investees 31,972 23,563 (81,953) (ii) The Group does not have the ability to exercise significant influence over these investments. Therefore, it has been precluded from applying the equity method of accounting. In 2020, the Group reclassified equity investments without readily determinable fair values of US$142,526, including fair value gain of US$115,137 for the year ended December 31, 2020,to equity investments with readily determinable fair values since quoted prices of the investees from active markets could be observed as these investees became listed in 2020. In 2020, the Group partially disposed of an investment with readily determinable fair values for a cash consideration of US$2,406. In 2021, the Group disposed or partially disposed of certain investments with readily determinable fair values for a cash consideration of US$128,263. In 2019, 2020 and 2021, fair value loss of US$3,060, fair value gain of US$144,634 and fair value loss of US$32,773 related to investments with readily determinable fair values were recognized in the consolidated statements of comprehensive income (Note 29), respectively. (iii) Equity securities without readily determinable fair values and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock. In 2020 and 2021, the Group acquired minority preferred shares or ordinary shares of a number of privately-held entities with total consideration of US$94,545 and US$38,806, respectively. The ownership interests were less than 20% of the investees’ total equities or the ownership interests redeemable upon condition. These equity investments are not considered as debt securities or equity securities that have readily determinable fair values. Accordingly the Company elected to account for these investments at cost less impairments, adjusted by observable price changes. In 2019, the Group completed the acquisition of the remaining 68.3% of equity interests in Bigo and Bigo became a wholly owned subsidiary of the Group. Therefore, the previously held 31.7% of equity interests in Bigo, which was classified as equity investments without readily determinable fair value, was derecognized. Please refer to Note 5(a) for the acquisition of Bigo. 12. Investments (continued) In 2020, the Group partially disposed of an investment without readily determinable fair values, with a consideration of US$20,000. In 2021, the Group disposed certain investments without readily determinable fair values, with a consideration of US$29,050 in total. In 2021, the Group disposed of an equity investment accounted for using the equity method and reinvested on the investment by acquiring majority of equity interests of its overseas entity that became a subsidiary of the Group. Accordingly, the Group recorded an equity investment held by this subsidiary as equity investment without readily determinable fair values amounting to US$51,775 as of December 31, 2021. In 2019, fair value gain of US$394,919 due to the observable price change, were recognized in gain on fair value changes of investments (Note 29), which was mainly due to gain on the fair value change on the investment in Bigo before the Company’s acquisition of Bigo. Out of the fair value gain of US$394,919 for the year ended December 31, 2019, fair value gain of US$397,589 was realized and fair value loss of US$2,670 was unrealized. In 2020, fair value gain of US$14,543 due to the observable price change, were recognized in gain on fair value changes of investments (Note 29).Out of the fair value gain of US$14,543 for the year ended December 31, 2020, fair value gain of US$15,498 was unrealized and fair value loss of US$955 was realized. In 2021, fair value gain of US$14,045 due to the observable price change, were recognized in gain on fair value changes of investments (Note 29). Out of the fair value gain of US$14,045 for the year ended December 31, 2021, fair value gain of US$1,339 was unrealized and fair value gain of US$12,706 was realized. 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 2019, 2020 and 2021, based on the Group’s assessment, an impairment charge of US$8,870, US$6,186 and US$93,632 was recognized in general and administrative expenses, respectively, against the carrying value of the investments due to significant deterioration in earnings or unexpected changes in business prospects of the investees as compared to the original investment plans. (iv) In 2020, the Group entered into convertible bond agreement to acquire a convertible bond issued by a private company with a total consideration of US $1,000 . The Group recorded this investment as an available-for-sale debt investment which is measured at fair value since the convertible bond is redeemable at the Group’s option. In 2021, the Group has recognized full impairment against this convertible bond considering the recoverability of this convertible bond. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment, net | |
Property and equipment, net | 13. Property and equipment, net Property and equipment consists of the following: December 31, 2020 2021 US$ US$ Gross carrying amount Servers, computers and equipment 301,671 319,393 Buildings 153,093 158,119 Construction in progress 69,890 96,552 Decoration of buildings 15,795 16,194 Leasehold improvements 8,966 8,210 Motor vehicles 6,626 6,585 Furniture, fixture and office equipment 4,788 5,229 Total 560,829 610,282 Less: accumulated depreciation (159,168) (244,890) Property and equipment, net 401,661 365,392 Depreciation expense for the years ended December 31, 2019, 2020 and 2021 were US$40,022, US$77,464 and US$108,686, respectively. |
Land use rights, net
Land use rights, net | 12 Months Ended |
Dec. 31, 2021 | |
Land use rights, net | |
Land use rights, net | 14. Land use rights, net Land use rights consist of the following: December 31, 2020 2021 US$ US$ Gross carrying amount 294,957 415,970 Less: accumulated amortization (36,187) (45,918) Land use rights, net 258,770 370,052 Amortization expense for the years ended December 31, 2019, 2020 and 2021 were US$6,981, US$6,957 and US$8,607, respectively. The estimated amortization expenses for each of the following five years are as follows: Amortization expense of land use rights US$ 2022 9,102 2023 9,102 2024 9,102 2025 9,102 2026 9,102 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets, net | |
Intangible assets, net | 15. Intangible assets, net The following table summarizes the Group’s intangible assets: December 31, 2020 2021 US$ US$ Gross carrying amount Trademark 359,976 371,975 Customer relationships 153,976 154,906 Non-compete agreement 12,100 12,100 Software 8,473 8,941 Operating rights 7,088 7,255 License 9,721 9,949 Technology 2,707 14,770 Domain names 1,197 1,518 Others 1,413 1,415 Total of gross carrying amount 556,651 582,829 Less: accumulated amortization Trademark (65,649) (102,815) Customer relationships (115,453) (133,921) Non-compete agreement (12,100) (12,100) Software (7,894) (8,270) Operating rights (6,980) (7,144) License (702) (1,382) Technology (1,789) (2,988) Domain names (538) (644) Others (116) (258) Total accumulated amortization (211,221) (269,522) Less: accumulated impairment (1,216) (1,225) Intangible assets, net 344,214 312,082 Amortization expense for the years ended December 31, 2019, 2020 and 2021 were US$94,510, US$102,465 and US$58,626 respectively. 15. Intangible assets, net (continued) The estimated amortization expenses for each of the following five years are as follows: Amortization expense of intangible assets US$ 2022 50,749 2023 50,634 2024 42,623 2025 40,953 2026 40,943 The weighted average amortization periods of intangible assets as of December 31, 2020 and 2021 are as below: December 31, 2020 2021 Trademark 10 years 10 years Customer relationships 3 years 3 years License 15 years 15 years Non-compete agreement 1 year 1 year Operating rights 2 years 2 years Software 3 years 3 years Domain names 14 years 15 years Technology 5 years 6 years Others 10 years 10 years |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill | |
Goodwill | 16. Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 are as follows: All other Bigo Total US$ US$ US$ Balance as of December 31, 2019 (i) 1,688 1,854,221 1,855,909 Increase in goodwill related to acquisition 16,067 — 16,067 Foreign currency translation adjustments 107 — 107 Balance as of December 31, 2020 17,862 1,854,221 1,872,083 Increase in goodwill related to acquisition (ii) 84,925 — 84,925 Foreign currency translation adjustments 1,255 — 1,255 Balance as of December 31, 2021 104,042 1,854,221 1,958,263 (i) The increase in goodwill in 2019 was related to the acquisition of Bigo. Please refer to Note 5(a) for the acquisition of Bigo. The Group performs its annual goodwill impairment test of each reporting unit in the fourth quarter, 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. 16. Goodwill (continued) The Group performed a goodwill impairment analysis in the fourth quarter of 2019, 2020 and 2021. When determining the fair value of the Bigo reporting unit, the Group used the income approach. The income approach determines fair value based on discounted cash flow models derived from the reporting units’ long-term forecasts which included a five-year future cash flow projection and an estimated terminal value for the impairment analysis of 2021. The discounted cash flow model included a number of significant unobservable inputs. Key assumptions used to determine the estimated fair value include: (a) the future cash flows forecasts including expected revenue growth, (b) an estimated terminal value using a terminal year long-term future growth rate determined based on the growth prospects of the reporting unit; and (c) a discount rate that reflects the weighted-average cost of capital adjusted for the relevant risk associated with each reporting unit’s operations and the uncertainty inherent in the Group’s internally developed forecasts. Based on the Group’s assessment, the fair value of Bigo reporting unit exceeded their carrying value by around 1%, 10% and 10% of the carrying value of the Bigo reporting unit in 2019, 2020 and 2021, respectively. Therefore, no impairment for goodwill recognized for the years ended December 31, 2019, 2020 and 2021. (ii) |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2021 | |
Deferred revenue | |
Deferred revenue | 17. Deferred revenue December 31, 2020 2021 US$ US$ Deferred revenue, current Live streaming 63,450 58,425 Others 3,780 2,485 Total current deferred revenue 67,230 60,910 Deferred revenue, non-current Live streaming 2,529 5,931 Others 603 491 Total non-current deferred revenue 3,132 6,422 |
Accrued liabilities and other c
Accrued liabilities and other current liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued liabilities and other current liabilities | |
Accrued liabilities and other current liabilities | 18. Accrued liabilities and other current liabilities December 31, 2020 2021 US$ US$ Revenue sharing fees and content costs 121,083 129,717 Salaries and welfare 112,217 99,725 Marketing and promotion expenses 95,261 58,854 Value added taxes and other taxes payable 88,215 137,142 Bandwidth costs 29,986 19,746 Consideration received related to disposal of YY Live (Note 3(a)) — 1,862,750 Others 37,688 37,904 Total 484,450 2,345,838 |
Short-term loans
Short-term loans | 12 Months Ended |
Dec. 31, 2020 | |
Short-term loans | |
Short-term loans | 19. Short-term loans December 31, 2020 2021 US$ US$ Short-term loans 112,549 — The Group entered into several agreements with banks, pursuant to which the Group borrowed loans with total principal amount of RMB693 million (equivalent to US$106 million) and US$6.3 million within a banking facility of RMB546 million (equivalent to US$84 million) and US$95 million in 2020, respectively. These loans were all with a maturity of less than one year and the annual interest rates ranged from 1.36% to 3.90%. Short-term deposits of RMB200 million (equivalent to US$31 million) were pledged as collateral for the banking facilities, which were classified as restricted short-term deposits. |
Convertible bonds
Convertible bonds | 12 Months Ended |
Dec. 31, 2021 | |
Convertible bonds. | |
Convertible bonds | 20. Convertible bonds December 31, 2020 2021 US$ US$ Non-current 2025 Convertible Senior Notes 410,614 463,319 2026 Convertible Senior Notes 368,611 460,758 Total 779,225 924,077 On June 19, 2019, the Company issued Convertible Senior Notes due 2025 with principal amount of US$500 million (the “Notes due 2025”) and Convertible Senior Notes due 2026 with principal amount of US$500 million (the “Notes due 2026”) (collective the “Notes”). The Notes due 2025 and Notes due 2026 bear interest at a coupon rate of 0.75% and 1.375% per year, respectively, and both of them are payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2019. The Notes due 2025 will mature on June 15, 2025 and the Notes due 2026 will mature on June 15, 2026. The Notes due 2025 and the Notes due 2026 may be converted, under certain circumstances, based on an initial conversion rate of 10.4271 The Notes due 2025 and Notes due 2026 are not redeemable prior to their maturity date, 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 June 15, 2023 and June 15, 2024, respectively. 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. Upon conversion, the Company may deliver ADS, cash, or a combination of ADS and cash at the option of the Company itself. Therefore, the Notes due 2025 and Notes due 2026 contains cash conversion features, which was an equity component and need to be bifurcated from the debt component of the Notes. Determination of the carrying amount of the debt component was based on the fair value of a similar debt instrument excluding the embedded conversion feature, by using discounted cash flow method. The equity component related to conversion features were recognized by ascribing the difference between the proceeds and the fair value of the debt component in Additional paid-in capital. The net proceeds to the Company from the issuance of the Notes due 2025 were US$491 million. Debt issuance costs of the Notes due 2025 were US$9 million. Out of the debt issuance costs, US$7 million was amortized to interest expense from the issuance date (June 19, 2019) to the first put date of the Notes (June 15, 2023) and US$2 million was allocated as deduction to the equity component. The net proceeds to the Company from the issuance of the Notes due 2026 were US$491 million. Debt issuance costs of the Notes due 2026 were US$9 million. Out of the debt issuance costs, US$6 million was amortized to interest expense from the issuance date (June 19, 2019) to the first put date of the Notes (June 15, 2024) and US$3 million was allocated as deduction to the equity component. 20. Convertible bonds (continued) The value of Notes due 2025 and Notes due 2026 is initially measured by the cash received after deducting the issuance cost and the bifurcation of the conversion features. The Notes due 2025 and Notes due 2026 are subsequently stated at amortized cost. The difference between the principal amount of the Notes due 2025 and Notes due 2026 and the amount of the proceeds allocated to the debt component plus the issuance costs are regarded as a debt discount, which is subsequently amortized through interest expense over the Notes due 2025 and Notes due 2026’s expected life using the interest method, respectively. On January 1, 2021, the Company early adopted ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” using modified-retrospective transition approach. Pursuant to ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. Following the adoption of this guidance, the amount previously allocated to additional paid-in capital was reclassified as a liability and a cumulative effect adjustment of US$86.7 million was credited to retained earnings as of January 1, 2021. During 2021, the Company recognized a net gain on extinguishment of debt of US$4.0 million net of the write-off of associated unamortized deferred loan costs through repayment of US$71.1 million of the Notes at a cost of US$66.7 million. As of December 31,2020 and 2021, US$779.2 million and US$924.1 million have been accounted for as the value of the convertible bonds in non-current liabilities. Interest expense related to the Notes due 2025 and Notes due 2026 recognized during the years ended December 31, 2020 and 2021 was US$71,898 and US$13,332, respectively. Concurrently with the issuance of the Notes, the Company purchased a capped call option (“Purchased Call Option”) in the amount of US$77,000, in order to mitigate the potential future economic dilution associated with the conversion of the Notes and to increase the initial conversion price to US$127.9 per ADS. Counterparty agreed to sell to the Company up to approximately 10.4 million ADS, which is the number of ADS initially issuable upon conversion of the Notes in full, at a price of US$95.9 per ADS. The Purchased Call Option will be settled in ADSs and will terminate upon the maturity date of the Notes. Settlement of the Purchased Call Option in ADSs, based on the number of ADSs issued upon conversion of the Notes, on the expiration date would result in the Company receiving shares equivalent to the number of shares issuable by the Company upon conversion of the Notes. In accordance with ASC 815-10-15-83, the Purchased Call Option meets the definition of a derivative instrument. However, the scope exception in accordance with ASC 815-10-15-74 applies to the Purchased Call Option as it is indexed to its own stock, and the Purchased Call Option meets the requirements of ASC 815 and would be classified in stockholders’ equity, therefore, the cost paid for Purchased Call Option was accounted for within stockholders’ equity, and subsequent changes in fair value will not be recorded. |
Cost of revenues
Cost of revenues | 12 Months Ended |
Dec. 31, 2021 | |
Cost of revenues | |
Cost of revenues | 21. Cost of revenues For the year ended December 31, 2019 2020 2021 US$ US$ US$ Revenue sharing fees and content costs 305,647 812,706 1,158,435 Payment handling costs 94,127 190,583 212,655 Bandwidth costs 101,957 120,419 96,536 Salary and welfare 56,430 102,330 116,679 Depreciation and amortization 29,480 61,021 87,339 Technical service fee 43,893 59,325 55,874 Share-based compensation 5,932 5,797 8,089 Other costs 19,454 25,965 45,543 Total 656,920 1,378,146 1,781,150 |
Other income
Other income | 12 Months Ended |
Dec. 31, 2021 | |
Other income | |
Other income | 22. Other income For the year ended December 31, 2019 2020 2021 US$ US$ US$ Government grants 4,514 6,518 16,947 Others 1,160 1,577 3,429 Total 5,674 8,095 20,376 |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2021 | |
Income tax | |
Income tax | 23. Income tax (i) Cayman Islands Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) BVI Duowan BVI is exempted from income tax on its foreign-derived income 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% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong are not subject to any Hong Kong withholding tax. (iv) Singapore The income tax provision of the Group in respect of its international operations in Singapore was calculated at the tax rate of 17% on the assessable profits, based on the existing legislation, interpretations and practices in respect thereof. 23. Income tax (continued) According to the Development and Expansion Incentive (the “Incentive”) pursuant to the provisions of Part IIIB of the Economic Expansion Incentives (Relief from Income Tax) Act, Chapter 86, corporations engaging in new high-value-added projects, expanding or upgrading their operations, or undertaking incremental activities after their pioneer period may apply for their profits to be taxed at a reduced rate of not less than 5% for an initial period of up to ten years. The total tax relief period for each qualifying project or activity is subject to a maximum of 40 years (inclusive of the post-pioneer relief period previously granted, if applicable). The Group’s Singapore entities provided for income tax are as follows: (1) Bigo Singapore applied for the Incentive and received approval in October 2018. Bigo Singapore is entitled to enjoy the beneficial tax rate of 5% as the Incentive for the years 2018 through 2022, and will need to re-apply for the Incentive qualification renewal in 2023. (2) Other Singapore entities were subject to 17% income tax for the periods reported. (v) PRC 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%. Certified High and New Technology Enterprises (“HNTE”) are entitled to a favorable tax rate of 15%, but need to re-apply every three years. 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 in any year, the enterprise cannot enjoy the 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% tax reduction to the applicable tax rate for the subsequent three years. An entity that qualifies as a “Key National Software Enterprise” (a “KNSE”) is entitled to a further reduced preferential income tax rate of 10%. Enterprises wishing to enjoy the status of a Software Enterprise or a KNSE must perform a self-assessment each year to ensure they meet the criteria for qualification and file required supporting documents with the tax authorities before adopting the preferential EIT rates. These enterprises will be subject to the tax authorities’ assessment each year as to whether they are entitled to use the relevant preferential EIT treatments. If at any time during the preferential tax treatment years an enterprise uses the preferential EIT rates but the relevant authorities determine that it fails to meet applicable criteria for qualification, the relevant authorities may revoke the enterprise’s Software Enterprise/KNSE status. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its entities registered outside of the PRC should be considered as resident enterprises for the PRC tax purposes. 23. Income tax (continued) (v) PRC (continued) The Group’s principal PRC entities provided for enterprise income tax are as follows: ● Guangzhou Huaduo applied for the renewal of HNTE qualification and received approval in December 2019. Guangzhou Huaduo is entitled to continue to enjoy the beneficial tax rate of 15% as an HNTE for the years 2019 through 2021, and will need to re-apply for HNTE qualification renewal in 2022. Guangzhou Huaduo ceased to enjoy the beneficial tax rate of 15% as an HNTE since 2021. ● In 2018, 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% and enjoyed an overall 15% preferential income tax rate as a HNTE from 2020. Guangzhou Huanju will need to re-apply for HNTE qualification renewal in 202 2. ● Guangzhou BaiGuoYuan Network Technology Co., Ltd. was qualified as a Software Enterprise, and started to enjoy the zero preferential tax rate from 2018 to 2019 and 12.5% preferential tax rate beginning from 2020. ● Guangzhou BaiGuoYuan Information Technology Co., Ltd. was qualified as an HNTE in 2018. It is entitled to enjoy the preferential tax rate of 15% for the years 2018 through 2020, and will need to re-apply for HNTE qualification renewal in 2021. ● Other PRC subsidiaries and VIEs were mainly subject to 25% EIT for the periods reported. 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 an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deducting amount of the qualified research and development expenses have been increased from 50% to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). Qualified subsidiaries and VIEs of the Group 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 an 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). In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and are subject to the withholding taxes. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends will be re-invested and the remittance of the dividends will be postponed indefinitely. Aggregate undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2020 and 2021 are approximately US$2,607,194 and US$4,930,397, respectively. The Group has a plan to indefinitely reinvest its aggregate undistributed earnings and reserves and any future earnings in the PRC for use in the operation and expansion of its business. Accordingly, no deferred tax liability on 10% withholding tax of aggregate undistributed earnings and reserves of the Company’s subsidiaries located in the PRC has been accrued that would be payable upon the distribution of those amounts to the Company as of December 31, 2020 and 2021. 23. Income tax (continued) Composition of income tax expense The current and deferred portions of income tax expense included in the consolidated statements of comprehensive income are as follows: For the year ended December 31, 2019 2020 2021 US$ US$ US$ (Loss) income before income tax expenses PRC entities (117,953) (170,994) (55,908) Non-PRC entities 23,211 184,651 (21,681) Total (94,742) 13,657 (77,589) Current income tax benefit (expenses) PRC entities 4,655 (6,278) (15,026) Non-PRC entities (4,276) (8,931) (20,524) Total 379 (15,209) (35,550) Deferred income tax benefit (expenses) PRC entities 4,843 (6,376) 1,013 Non-PRC entities 14,876 (6,240) 8,792 Total 19,719 (12,616) 9,805 Income tax benefit (expenses) PRC entities 9,498 (12,654) (14,013) Non-PRC entities 10,600 (15,171) (11,732) Total 20,098 (27,825) (25,745) Reconciliation of the differences between statutory tax rate and the effective tax rate 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, 2019 2020 2021 Singapore statutory income tax rate (*) 17.0 % 17.0 % 17.0 % Effect of tax holiday and preferential tax benefit 30.6 % (163.2) % 20.9 % Effect of different tax rates available to different jurisdictions (i) 24.0 % (60.1) % 47.6 % Permanent differences (ii) (0.5) % 151.9 % (66.3) % Change in valuation allowance (68.6) % 484.7 % (95.2) % Effect of Super Deduction available to the Group 18.7 % (226.6) % 42.8 % Effective income tax rate 21.2 % 203.7 % (33.2) % *: As a majority of the Group’s businesses is subject to Singapore corporate tax rate, the reconciliation of tax expenses begins at Singapore statutory income tax rate. 23. Income tax (continued) Composition of income tax expense (continued) (10) The effect of different tax rates available to different jurisdictions was mainly due to the re-measurement gain of the previously held equity interest in Bigo on the acquisition date incurred by Duowan BVI whose applicable tax rate is zero for the year ended December 31, 2019. (11) 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, 2020 and 2021 are as follows: December 31, 2020 2021 US$ US$ Deferred tax assets: Tax loss carried forward 123,884 176,009 Allowance for expected credit loss of receivable, accrued expense and others not currently deductible for tax purposes 35,969 33,341 Deferred revenue 4,576 5,346 Impairment of investment 3,607 7,632 Others 1,177 — Valuation allowance (i) (150,252) (213,688) Amounts offset by deferred tax liabilities (18,961) (8,640) Total deferred tax assets, net — — Deferred tax liabilities: Related to the fair value changes of investments 23,118 9,061 Related to acquired intangible assets 36,767 34,013 Others 1,498 1,780 Amounts offset by deferred tax assets (18,961) (8,640) Total deferred tax liabilities, net 42,422 36,214 (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. 23. Income tax (continued) Deferred tax assets and liabilities (continued) Movement of valuation allowance For the year ended December 31, 2019 2020 2021 US$ US$ US$ Balance at beginning of the year (24,980) (87,106) (150,252) Additions (78,269) (96,629) (119,999) Reversals 16,143 33,483 56,563 Balance at end of the year (87,106) (150,252) (213,688) Tax loss carry forwards As of December 31, 2021, total tax loss carry forwards of the Company’s subsidiaries and VIEs in the PRC amounted to US$575,759, which were mainly generated by non-HNTEs. The tax losses in PRC can be carried forward for five years to offset future taxable profit, and the period was extended to 10 years for entities qualified as HNTEs in 2019 and thereafter. The tax losses of entities in the PRC will expire from 2022 to 2030, if not utilized. The accumulated tax losses of subsidiaries incorporated in Hong Kong, Singapore and other countries, subject to the agreement of the relevant tax authorities, of US$9,373, US$299,516 and US$104,119, respectively, are allowed to be carried forward to offset against future taxable profits. Such carry forward of tax losses in Hong Kong and Singapore have no time limit. In accordance with Singapore Tax Administration Law, the Singapore tax authorities generally have up to four years to claw back underpaid tax if the year of assessment is 2008 onwards. Accordingly, tax filings of the Group’s Singapore subsidiaries for tax years 2018 through 2021 remain subject to the review by the relevant Singapore tax authorities. There were no ongoing tax examinations as of December 31, 2021 by Singapore tax authorities. 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. Accordingly, tax filings of the Group’s PRC subsidiaries and VIEs for tax years 2017 through 2021 remain subject to the review by the relevant PRC tax authorities. There were no ongoing tax examinations as of December 31, 2021 by PRC tax authorities. |
Mezzanine equity
Mezzanine equity | 12 Months Ended |
Dec. 31, 2021 | |
Mezzanine equity | |
Mezzanine equity | 24. Mezzanine equity In 2018, a subsidiary of the Group issued 500,000,000 shares of redeemable convertible preferred shares for cash consideration of US$50,000 to certain third-party investors. The Group classifies the redeemable convertible preferred shares as mezzanine equity and records accretion of redemption value in accordance with ASC 480-10. The Group used the interest method for the changes of redemption value over the period from the date of issuance to the earliest redemption date of the non-controlling interests. Accretion of redeemable convertible preferred shares to redemption value of US$5,000, US$5,000 and US$5,000 was recognized for the years ended December 31, 2019, 2020 and 2021. |
Common shares and treasury shar
Common shares and treasury shares | 12 Months Ended |
Dec. 31, 2021 | |
Common shares and treasury shares | |
Common shares and treasury shares | 25. Common shares and treasury shares On August 13, 2019, the Company’s board of directors approved a share repurchase programs (the “Share Repurchase Program”), 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$300 million in total of the Company’s outstanding ADSs for a period not to exceed twelve (12) months from the date of approval by board of directors. For the year ended December 31, 2019, the Company had repurchased an aggregate of 434,145 ADSs, representing 8,682,900 Class A common shares at an average price of US$54.6194 per ADS, or US$2.7310 per Class A common share, for aggregate consideration of US$23.7 million. Since the shares repurchased hasn’t been cancelled, the excess of repurchase price over par value was recorded as treasury shares upon the repurchase date. Additionally, in order to lower the average cost of acquiring shares in the ongoing share repurchase program, the Company purchased a capped call option of US$11.7 million for the repurchase of shares. Upon expiration of the option, if the closing market price of the Company’s common share is at or above the pre-determined price (the “Strike Price”), the Company will have its initial investment returned with a premium in either cash or shares at the Company’s election. If the closing market price is below the Strike Price, the Company will receive the number of shares specified in the agreement. As the outcome of these arrangements is based entirely on the Company’s stock price and does not require the Company to deliver either shares or cash, other than the initial investment, the entire transaction is recorded in equity. The agreement was expired in January 2020 and the Company received approximate US$12.2 million of cash that was recorded in equity. During the year ended December 31, 2019, 6,216,060 Class A common shares were issued for the exercised share options, vested restricted shares and restricted share. 305,127,046 Class A common shares and 38,326,579 Class B common shares were issued to Bigo’s selling shareholders during Bigo’s acquisition. As of December 31, 2019, 10,000,000,000 Class A common shares and 1,000,000,000 Class B common shares had been authorized, 1,301,845,404 Class A common shares and 326,509,555 Class B common shares had been issued, 1,293,162,504 Class A common shares and 326,509,555 Class B common shares were outstanding, respectively. During the year ended December 31, 2020, 12,363,420 Class A common shares were issued for the exercised share options, vested restricted shares and restricted share. The Company also repurchased an aggregate of 1,658,291 ADSs, representing 33,165,820 Class A common shares at an average price of US$69.8407 per ADS or US$3.4920 per Class A common share, for aggregate consideration of US$115.8 million. Since the shares repurchased have not been cancelled, the excess of repurchase price over par value was recorded as treasury shares upon the repurchase date. As of December 31, 2020, 10,000,000,000 Class A common shares and 1,000,000,000 Class B common shares had been authorized, 1,314,208,824 Class A common shares and 326,509,555 Class B common shares had been issued, 1,272,346,218 Class A common shares and 326,509,555 Class B common shares were outstanding, respectively. During the year ended December 31, 2021, 3,631,640 Class A common shares were issued for the exercised share options, vested restricted shares and restricted share. In addition, 1,442,020 Class A common shares were transferred out from the treasury shares pool and issued for vested restricted share units during the year ended December 31, 2021. The Company also repurchased an aggregate of 6,515,488 ADSs, representing 130,309,760 Class A common shares at an average price of US$60.3154 per ADS or US$3.0158 per Class A common share, for aggregate consideration of US$393.0 million. Since the shares repurchased have not been cancelled, the excess of repurchase price over par value was recorded as treasury shares upon the repurchase date. As of December 31, 2021, 10,000,000,000 Class A common shares and 1,000,000,000 Class B common shares had been authorized, 1,317,840,464 Class A common shares and 326,509,555 Class B common shares had been issued, 1,146,336,305 Class A common shares and 326,509,555 Class B common shares were outstanding, respectively. On September 9, 2021, the Company’s board of directors approved a new share repurchase plan (the “September 2021 Share Repurchase Plan”), pursuant to which the Company may repurchase up to US$200 million of the Company’s outstanding ADSs or common shares over the next 12 months. On November 16, 2021, the Company’s board of directors further approved an additional share repurchase plan (the “November 2021 Share Repurchase Plan”), pursuant to which the Company may repurchase up to US$1 billion of the Company’s outstanding ADSs or common shares over the next 12 months. As of December 31, 2021, the Company had repurchased approximately US$235.7 million of its shares. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based compensation | |
Share-based compensation | 26. Share-based compensation (a) JOYY’s share-based awards (i) Restricted Share Units On September 16, 2011, the board of directors of the Company approved the 2011 Share Incentive Scheme which include share options, restricted share units and restricted shares. 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 plus an annual increase of 20,000,000 on the first day of each fiscal year, or such lesser amount of Class A common shares as determined by the board of directors of the Company. In September 2021, the board of directors of the Company amended and restated the 2011 Share Incentive Scheme (“Amended and Restated 2011 Share Incentive Scheme”), pursuant to which the Company replaced the 2011 Share Incentive Scheme in its entirety and the awards granted and outstanding thereunder remain effective and binding under the Amended and Restated 2011 Share Incentive Scheme. 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 Amended and Restated 2011 Share Incentive Scheme shall be 131,950,949 plus an annual increase of 20,000,000 on the first day of each fiscal year, beginning in 2022, or such lesser amount of Class A common shares. During the years ended December 31, 2019, 2020 and 2021, the Company granted restricted share units to employees of 16,114,095, 62,770,405 and 9,387,270, respectively, pursuant to the 2011 Share Incentive Scheme. The following table summarizes the restricted share units activity for the years ended December 31, 2019, 2020 and 2021: Weighted Number of average restricted grant-date shares fair value (US$) Outstanding, December 31, 2018 25,229,634 4.9639 Granted 16,114,095 3.0005 Forfeited (6,381,786) 4.7840 Vested (7,848,811) 4.7427 Outstanding, December 31, 2019 27,113,132 3.9034 Granted 62,770,405 3.6059 Forfeited (10,312,521) 3.9198 Vested (6,918,126) 4.3045 Outstanding, December 31, 2020 72,652,890 3.6059 Granted 9,387,270 3.6323 Forfeited (42,872,565) 3.5461 Vested (15,139,700) 3.6104 Outstanding, December 31, 2021 24,027,895 3.7202 Expected to vest as of December 31, 2021 21,487,110 3.7203 For the years ended December 31,2019,2020 and 2021, the Company recorded share-based compensation of US$15,624, US$47,514 and US$21,427 in relation to continuing operations using the graded-vesting attribution method. 26. Share-based compensation (a) JOYY’s share-based awards (continued) (i) Restricted Share Units (continued) As of December 31, 2021, total unrecognized compensation expense relating to the restricted share units was US$45,306. The expense is expected to be recognized over a weighted average period of 1.27 years using the graded-vesting attribution method. (ii) Restricted Shares In connection with the acquisition of Bigo in March 2019, the Group issued common shares to replace Bigo’s share incentive scheme. There are mainly three types of vesting schedule under Bigo’s share incentive scheme, which are: i) 50% of the share-based awards will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, ii) share-based awards will be vested in four equal installments over the following 48 months, and iii) share-based awards will be vested in three equal installments over the following 36 months. After the acquisition, Bigo’s share incentive scheme are replaced by JOYY’s restricted shares of 38,042,760 without change in vesting terms. The post-acquisition share-based compensation expenses are recognized over the remaining vesting period after the acquisition date. In addition, the Company granted additional restricted shares to employees of 4,541,086 and 7,888,160 during the year ended December 31, 2020 and 2021, respectively. The following table summarizes the restricted shares activity for the years ended December 31, 2019, 2020 and 2021: Weighted Number of average restricted grant-date fair shares value (US$) Outstanding, December 31, 2018 — — Replacement due to acquisition of Bigo 38,042,760 3.6100 Granted 16,041,327 3.4750 Forfeited (7,279,877) 3.6302 Vested (8,599,959) 3.6608 Outstanding, December 31, 2019 38,204,251 3.5267 Granted 4,541,086 3.9739 Forfeited (4,554,972) 3.5287 Vested (11,770,000) 3.6290 Outstanding, December 31, 2020 26,420,365 3.5577 Granted 7,888,160 3.0435 Forfeited (8,661,973) 3.7025 Vested (10,497,147) 3.4862 Outstanding, December 31, 2021 15,149,405 3.2566 Expected to vest as of December 31, 2021 13,334,495 3.2151 26. Share-based compensation (continued) (a) JOYY’s share-based awards (continued) For the years ended December 31, 2019, 2020 and 2021, the Company recorded share-based compensation for restricted shares in relation to continuing operations of US$52,994, US$38,618 and US$9,733 using the graded-vesting attribution method. As of December 31, 2021, total unrecognized compensation expense relating to the restricted shares was US$27,370. The expense is expected to be recognized over a weighted average period of 1.77 years using the graded-vesting attribution method. (iii) Share options Pre-2009 Scheme Options Before the adoption of the Employee Equity Incentive Scheme (the “2009 Incentive Scheme”), 12,705,700 and 8,499,050 share options were granted to employees through individually signed share option agreements, to acquire common shares of Duowan BVI on a one-to-one basis on January 1, 2008 and 2009 respectively. In addition, on January 1, 2008, 3,832,290 share options were granted to one non-employee for the provision of consulting services to the Group (collectively defined as “Pre-2009 Scheme Options”). The vesting of the Pre-2009 Scheme Options has already been completed before January 1, 2016. As of December 31, 2018, all outstanding, vested and exercisable share options have been exercised. 2011 Share Incentive Scheme Grant of options During the years ended December 31, 2019 and 2020, the Company granted 438,100 and nil share options to employees, pursuant to the 2011 Share Incentive Scheme. Vesting of options There are three types of vesting schedule, which are: i) options will be vested in three equal installments over the following 36 months, ii) 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, and iii) 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in one installments over the following 12 months. 26. Share-based compensation (continued) (a) JOYY’s share-based awards (continued) (iii) Share options (continued) Movements in the number of share options granted and their related weighted average exercise prices are as follows: Weighted Weighted average Aggregate average remaining intrinsic Number of exercise contractual life value options price (US$) (years) (US$) Outstanding, January 1, 2019 10,934,300 4.7025 5.29 — Granted 438,100 3.5350 Forfeited (1,065,000) 4.5225 Outstanding, December 31, 2019 10,307,400 3.8069 5.45 — Outstanding, December 31, 2020 10,307,400 3.8069 4.45 3,669 Forfeited (893,000) 3.8830 Outstanding, December 31, 2021 9,414,400 3.7997 2.80 — Expected to vest as of December 31, 2021 9,414,400 3.7997 2.80 — Exercisable as of December 31, 2021 6,444,200 3.9216 2.97 — 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, 2019, 2020 and 2021 and the exercise price. The total intrinsic value was nil due to the higher exercise price compared to the Company’s common shares as of December 31, 2019 and 2021 and the exercise price. For the years ended December 31, 2019, 2020 and 2021, the Company recorded share-based compensation in relation to continuing operations of US$7,134, US$5,558 and US$2,222 using the graded vesting attribution method. The Company has used binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions are set as below: 2019 Weighted average fair value per option granted 1.7582 Weighted average exercise price 3.5350 Weighted average Risk-free interest rate (1) 1.82 % Expected term (in year) (2) 6 Expected volatility (3) 56 % Dividend yield (4) — (1) The risk-free interest rate of periods within the contractual life of the share option is based on US Treasury Bonds of similar tenor at the valuation dates. (2) The expected term is the contract life of the option. 26. Share-based compensation (continued) (a) JOYY’s share-based awards (continued) (iii) Share options (continued) (3) Expected volatility is estimated based on the average of historical volatilities of the Company at the valuation dates. (4) The Company has no history or expectation of paying dividend on its common shares before December 31,2019. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. (b) Other share-based awards For the years ended December 31, 2019, 2020 and 2021, the Company recorded share-based compensation expense of US$604, US$470 and nil for other share-based compensation. |
Basic and diluted net income pe
Basic and diluted net income per share | 12 Months Ended |
Dec. 31, 2021 | |
Basic and diluted net income per share | |
Basic and diluted net income per share | 27. Basic and diluted net income per share Basic and diluted net income per share for the years ended December 31, 2019, 2020 and 2021 are calculated as follows: For the year ended December 31, 2019 2020 2021 US$ US$ US$ Numerator: Net loss from continuing operations attributable to common shareholders of JOYY Inc. (74,344) (28,305) (125,096) Numerator for diluted loss per share from continuing operations (74,344) (28,305) (125,096) Net income from discontinued operations attributable to common shareholders of JOYY Inc. 574,592 1,391,638 35,567 Incremental dilution from Huya (1) (2,033) (655) — Numerator for diluted income per share from discontinued operations 498,215 1,362,678 (89,529) Denominator: Denominator for basic calculation—weighted average number of Class A and Class B common shares outstanding 1,544,396,920 1,600,199,759 1,562,016,001 Denominator for diluted calculation 1,544,396,920 1,600,199,759 1,562,016,001 Basic net income (loss) per Class A and Class B common share 0.32 0.85 (0.06) Continuing operations (0.05) (0.02) (0.08) Discontinued operations 0.37 0.87 0.02 Diluted net income (loss) per Class A and Class B common share 0.32 0.85 (0.06) Continuing operations (0.05) (0.02) (0.08) Discontinued operations 0.37 0.87 0.02 Basic net income (loss) per ADS* 6.48 17.04 (1.14) Continuing operations (0.96) (0.35) (1.60) Discontinued operations 7.44 17.39 0.46 Diluted net income (loss) per ADS* 6.45 17.04 (1.14) Continuing operations (0.96) (0.35) (1.60) Discontinued operations 7.41 17.39 0.46 * Each ADS represents 20 common shares. (1) In calculation of diluted net income per share, assuming a dilutive effect, all of Huya’s existing unvested restricted share units and unexercised share options are treated as vested and exercised by Huya under the treasury stock method, causing the decrease percentage of the weighted average number of shares held by the Company in Huya. As a result, Huya’s net income (loss) attributable to the Company on a diluted basis decreased accordingly, which is presented as “incremental dilution from Huya” in the table. 27. Basic and diluted net income per share (continued) For the years ended December 31, 2019, 2020 and 2021, the following shares outstanding were excluded from the calculation of diluted net (loss) income per share, as their inclusion would have been anti-dilutive for the periods prescribed but which could potentially dilute EPS in the future. For the year ended December 31, 2019 2020 2021 Shares issuable upon exercise of share options 10,307,400 10,307,400 9,414,400 Shares issuable upon exercise of restricted share units 27,113,132 72,652,890 24,027,895 Shares issuable upon exercise of restricted share 38,204,251 26,420,365 15,149,405 Shares issuable upon conversion of convertible bonds 208,542,000 210,568,000 201,677,195 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions | |
Related party transactions | 28. Related party transactions The table below sets forth the major related parties and their relationships with the Group: Major related parties Relationship with the Group Guangzhou Sunhongs Corp., Ltd. (“Guangzhou Sunhongs”) (Formerly known as Guangzhou Shanghang Information Technology Co., Ltd.) Significant influence exercised by a principal shareholder of the Company Kingsoft Cloud Holdings Limited Significant influence exercised by a principal shareholder of the Company Shopline Limited (“Shopline Group”) Investment with significant influence Xiaomi Corporation (“Xiaomi Group”) Controlled by a principal shareholder of the Company Huya * Investment with significant influence * Since April 3, 2020, Huya ceased to be a subsidiary of the Group and the Group accounted for the investment in Huya using the equity method. During the years ended December 31, 2019, 2020 and 2021, significant related party transactions are as follows: For the year ended December 31, 2019 2020 2021 US$ US$ US$ Disposal of investments to related parties — 20,271 — Bandwidth service provided by Guangzhou Sunhongs 13,434 14,229 3,287 Promotion expense charged from related parties 3,706 2,533 3,149 Bandwidth service provided by Kingsoft Cloud 1,727 2,126 448 Loan to related parties 24,675 723 34,035 Purchase of fixed assets from Kingsoft Cloud 2,435 427 — Payments on behalf of related parties, net of repayments (1,780) 335 55,301 Online games revenue shared from related parties 521 — — Repayment of loans from related parties — — 156 Others 2,014 850 2,396 28. Related party transactions (continued) As of December 31, 2020 and 2021, the amounts due from/to related parties are as follows: December 31, 2020 2021 US$ US$ Amounts due from related parties, current Amounts due from Shopline Group — 56,316 Others 611 668 Total 611 56,984 Amounts due to related parties Due to Huya 56 4,363 Due to Xiaomi Group 494 1,384 Due to Guangzhou Sunhongs 1,160 128 Others 2,112 1,056 Total 3,822 6,931 *Other receivables and payables from/to related parties are unsecured and payable on demand. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair value measurements | |
Fair value measurements | 29. Fair value measurements Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. 29. Fair value measurements (continued) 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. (a) Fair value measurement on a recurring basis 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, 2020 and 2021: As of December 31, 2020 Level 1 Level 2 Total Assets Short-term investments (i) 124,176 364,925 489,101 Equity investment with readily determinable fair values (ii) 184,968 — 184,968 Derivative – forward exchange contracts — 54 54 309,144 364,979 674,123 Liabilities Derivatives – forward exchange contracts — (6,789) (6,789) As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Short-term investments (i) 212,795 682,697 51,051 946,543 Equity investment with readily determinable fair values (ii) 25,480 — — 25,480 238,275 682,697 51,051 972,023 (i) Short-term investments represented the investments issued by commercial banks or other financial institutions 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. (ii) Equity investments with readily determinable fair values are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. 29. Fair value measurements (continued) (a) Fair value measurement on a recurring basis (continued) The following table presents the changes in Level 3 assets for the years ended December 31, 2019, 2020 and 2021: Available-for-sale debt investment — Convertible bond US$ Balance as of January 1, 2019 and December 31, 2019 — Acquisition 1,000 Balance as of December 31, 2020 1,000 Impairment (1,000) Balance as of December 31, 2021 — Available-for-sale debt investments do not have readily determinable market value, which were categorized as Level 3 in the fair value hierarchy. The Company uses a combination of valuation methodologies, including market and income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees, future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies. In 2021, the Group has recognized full impairment against this convertible bond considering the recoverability of this convertible bond. (b) Fair value measurement on a non-recurring basis The Company measures investments without readily determinable fair value on a nonrecurring basis when impairment charges and fair value change due to observable price change are recognized. These nonrecurring fair value measurements use significant unobservable inputs (Level 3). The Company uses a combination of valuation methodologies, including market and income approaches based on the Company’s best estimate to determine the fair value of these investments. An observable price change is usually resulting from new rounds of financing of the investees. The Company determines whether the securities offered in new rounds of financing are similar to the equity securities held by the Company by comparing the rights and obligations of the securities. When the securities offered in new rounds of financing are determined to be similar to the securities held by the Company, the Company adjusts the observable price of the similar security to determine the amount that should be recorded as an adjustment in the carrying value of the security to reflect the current fair value of the security held by the Company by using the back-solve method based on the equity allocation model with adoption of some key parameters such as risk-free rate and equity volatility. Inputs used in these methodologies primarily include discount rate, the selection of comparable companies operating in similar businesses and etc. For the years ended December 31, 2019, 2020 and 2021, gain on fair value changes of investment of US$394,919, US$14,543 and US$14,045 due to the observable price change of the investment without readily determinable fair value. The gain on fair value changes of investment for the year ended December 31, 2019 was mainly due to the fair value change of investment in Bigo before the acquisition of Bigo, was recognized in gain on fair value changes of investments. 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 2019, 2020 and 2021, based on the Group’s assessment, an impairment charge of US$8,870, US$6,186 and US$93,632 was recognized in general and administrative expenses, respectively, against the carrying value of the investments due to significant deterioration in earnings or unexpected changes in business prospects of the investees as compared to the original investment plans. Apart from the short-term investments, equity investment measured at fair value through earnings and derivatives, the Company’s other financial instruments principally consist of cash and cash equivalent, restricted cash and cash equivalent, short-term deposits, restricted short-term deposits, accounts receivable, financing receivables, other receivables, amounts due to/from related parties, accounts payable, certain accrued expenses and convertible bonds. These financial instruments are recorded at cost which approximates fair value. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 30. Commitments and contingencies (a) Operating lease commitments The operating lease commitments as of December 31, 2021 as presented below mainly consist of the short-term lease commitments and leases that have not yet commenced but that create significant rights and obligations for the Company, which are not included in operating lease right-of-use assets and lease liabilities. As of December 31, 2021, future minimum payments under non-cancellable operating leases commitments consist of the following: Office rental US$ 2022 1,846 2023 223 2024 43 2025 and after — 2,112 (b) Capital commitments As of December 31, 2020 and 2021, the Group had outstanding capital commitments totaling to US$ 142,975 and US$ 109,881 , which consisted of capital expenditures related to properties and additional investments in equity investments, respectively. (c) Litigation The Company and certain of its current and former officers and directors were named as defendants in a federal putative securities class action filed in November 2020 alleging that they made material misstatements and omissions in documents filed with the SEC regarding certain of the allegations contained in a short seller report. On March 9, 2022, the court granted the motion to dismiss the claims against the Company but plaintiff still has the ability to file a notice of appeal within 30 days from March 9, 2022. The plaintiffs have filed a notice of appeal before the due date. As of the date of this report, the Company is not able to make a reliable estimate of any potential loss from this class action. In addition to the above, from time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2021 | |
Dividends. | |
Dividends | 31. Dividends On March 16, 2022, the board of directors declared a dividend of US$0.51 per ADS, or US$0.0255 per common share, for the fourth quarter of 2021, which is expected to be paid on April 29, 2022 to shareholders of record as of the close of business on April 14, 2022. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted net assets | |
Restricted net assets | 32. 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% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s subsidiaries and VIEs incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion as calculated under U.S. GAAP amounted to approximately US$902,896 and US$1,088,061 for the Group's VIEs as of December 31, 2020 and 2021, respectively, and US$78,416 and US$210,740 for the Group's subsidiaries as of December 31, 2020 and 2021, respectively. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to our shareholders. Cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily restrict the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiaries and VIEs to satisfy any obligations of the Company. 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 did not exceed 25% of the consolidated net assets of the Company as of December 31, 2021 and the condensed financial information of the Company are not required to be presented. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting | |
Segment Reporting | 33. Segment Reporting Historically, there are two segments in the Group, including YY Live and Huya for the years ended December 31, 2018. Starting from the first quarter of 2019, the segment of “YY Live” was renamed as “YY”. The Company completed the acquisition of Bigo in March 2019, which is a separate segment of the Group. Therefore, there are three segments in the Group for the year ended December 31, 2019. Starting from the second quarter of 2020, the Company deconsolidated Huya and Huya’s historical financial results were reflected in the Company’s consolidated financial statements as discontinued operations accordingly. As a result of the definitive agreements entered into with Baidu on the sale of YY Live, YY Live is represented as discontinued operations. YY segment is renamed as “All other” segment and has been recast to exclude the financial numbers of YY Live. 33. Segment Reporting (continued) (a) For the year ended December 31, 2021: Bigo All other Elimination (1) Total US$ US$ US$ US$ Net revenues Live streaming 2,231,366 245,424 — 2,476,790 Others 92,392 49,936 (67) 142,261 Total net revenues 2,323,758 295,360 (67) 2,619,051 Cost of revenues (2) (1,539,188) (242,029) 67 (1,781,150) Gross profit 784,570 53,331 — 837,901 Operating expenses (2) Research and development expenses (204,597) (75,184) — (279,781) Sales and marketing expenses (402,476) (65,931) — (468,407) General and administrative expenses (56,827) (164,904) — (221,731) Total operating expenses (663,900) (306,019) — (969,919) Gain on disposal of business — 4,959 — 4,959 Other income 6,929 13,447 — 20,376 Operating income (loss) 127,599 (234,282) — (106,683) Interest expense (3,460) (13,468) 2,453 (14,475) Interest income and investment income 1,316 92,370 (2,453) 91,233 Foreign currency exchange losses, net (12,444) (933) — (13,377) Loss on disposal and deemed disposal of investments — (23,762) — (23,762) Loss on fair value changes of investment — (15,435) — (15,435) (Loss) gain on extinguishment of debt and derivative (52) 5,343 — 5,291 Other non-operating expenses — (381) — (381) Income (loss) before income tax expenses 112,959 (190,548) — (77,589) Income tax expenses (9,153) (16,592) — (25,745) Income (loss) before share of loss in equity method investments, net of income taxes 103,806 (207,140) — (103,334) Share of loss in equity method investments, net of income taxes — (26,217) — (26,217) Net income (loss) from continuing operations 103,806 (233,357) — (129,551) (i) The elimination mainly consists of revenues and expenses generated from services among Bigo and all other segments, and interest income and interest expenses generated from the loan between Bigo and all other segments. (ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total US$ US$ US$ Cost of revenues 5,974 2,115 8,089 Research and development expenses 17,179 6,874 24,053 Sales and marketing expenses 654 631 1,285 General and administrative expenses (5,297) 5,252 (45) 33. Segment Reporting (continued) (a) For the year ended December 31, 2020: Bigo All other Elimination (1) Total US$ US$ US$ US$ Net revenues Live streaming 1,659,311 156,515 — 1,815,826 Others 73,500 28,818 — 102,318 Total net revenues 1,732,811 185,333 — 1,918,144 Cost of revenues (2) (1,207,124) (171,022) — (1,378,146) Gross profit 525,687 14,311 — 539,998 Operating expenses (2) Research and development expenses (194,122) (108,696) — (302,818) Sales and marketing expenses (446,521) (58,868) — (505,389) General and administrative expenses (85,685) (60,981) — (146,666) Total operating expenses (726,328) (228,545) — (954,873) Other income 3,550 4,545 — 8,095 Operating loss (197,091) (209,689) — (406,780) Interest expense (7,892) (72,474) 4,811 (75,555) Interest income and investment income 155 93,734 (4,811) 89,078 Foreign currency exchange losses, net (17,035) (437) — (17,472) Gain on disposal and deemed disposal of investments — 272,281 — 272,281 Gain on fair value changes of investment — 160,849 — 160,849 Fair value change on derivatives (281) (5,996) — (6,277) Other non-operating expenses (889) (1,578) — (2,467) (Loss) income before income tax expenses (223,033) 236,690 — 13,657 Income tax benefits (expense) 9,425 (37,250) — (27,825) (Loss) income before share of loss in equity method investments, net of income taxes (213,608) 199,440 — (14,168) Share of loss in equity method investments, net of income taxes — (7,634) — (7,634) Net (loss) income from continuing operations (213,608) 191,806 — (21,802) (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: 33. Segment Reporting (continued) (a) Bigo All other Total US$ US$ US$ Cost of revenues 4,094 1,703 5,797 Research and development expenses 33,795 8,851 42,646 Sales and marketing expenses 706 605 1,311 General and administrative expense 33,668 8,738 42,406 33. Segment Reporting (continued) (a) The following table presents summary information by segment (continued): For the year ended December 31, 2019: Bigo All other Elimination (1) Total US$ US$ US$ US$ Net revenues Live streaming 657,788 111,360 — 769,148 Others 58,541 73,013 — 131,554 Total net revenues 716,329 184,373 — 900,702 Cost of revenues (2) (505,643) (151,277) — (656,920) Gross profit 210,686 33,096 — 243,782 Operating expenses (2) Research and development expenses (141,553) (94,951) — (236,504) Sales and marketing expenses (297,713) (106,782) — (404,495) General and administrative expenses (47,800) (87,764) — (135,564) Total operating expenses (487,066) (289,497) — (776,563) Gain on disposal of business — 11,754 — 11,754 Other income 1,390 4,284 — 5,674 Operating loss (274,990) (240,363) — (515,353) Interest expense (4,584) (37,970) 4,440 (38,114) Interest income and investment income 389 65,798 (4,440) 61,747 Foreign currency exchange gain (losses), net 1,967 (672) — 1,295 Gain on fair value changes of investment — 397,960 — 397,960 Fair value change on derivatives — (2,277) — (2,277) (Loss) income before income tax expenses (277,218) 182,476 — (94,742) Income tax benefits 19,605 493 — 20,098 (Loss) income before share of income in equity method investments, net of income taxes (257,613) 182,969 — (74,644) Share of income in equity method investments, net of income taxes — 5,974 — 5,974 Net (loss) income from continuing operations (257,613) 188,943 — (68,670) 33. Segment Reporting (continued) (a) The following table presents summary information by segment (continued): (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total US$ US$ US$ Cost of revenues 4,084 1,848 5,932 Research and development expenses 43,625 8,986 52,611 Sales and marketing expenses 617 107 724 General and administrative expense 4,720 12,369 17,089 (b) The following tables set forth revenues and property and equipment for the Company’s geographic operations: For the years ended December 31, 2019 2020 2021 US$ US$ US$ Revenues: PRC 297,469 362,963 481,770 Developed countries 207,016 612,679 872,974 Middle East 182,630 475,662 621,775 Southeast Asia and others 213,587 466,840 642,532 Developed countries mainly included the United States of America, Great Britain, Japan, South Korea and Australia, Middle East mainly included Saudi Arabia and other countries located in the region, and Southeast Asia and others mainly included countries located in Southeast Asia and India. As of December 31, 2020 2021 US$ US$ Property and equipment, net: PRC 246,325 282,955 Singapore 134,170 50,289 Other countries 21,166 32,148 |
Principal accounting policies (
Principal accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Principal accounting policies | |
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, Huya Technology, BaiGuoYuan Technology, Guangzhou Wangxing and ultimately the Company hold all the variable interests of the VIEs and have been determined to be the primary beneficiaries of the VIEs. As a result of the share transfer to Tencent on April 3, 2020, the Group no longer consolidate the results of operations of Huya. The Company deconsolidates its subsidiaries or business in accordance with ASC 810 as of the date the Company ceased to have a controlling financial interest in the subsidiaries. 2. Principal accounting policies (continued) (b) Consolidation (continued) The Company accounts for the deconsolidation of its subsidiaries or business 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 assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of contracts with multiple performance obligations (and identification thereof), income taxes, expected credit loss of receivables, determination of share-based compensation expenses, purchase price allocation in a business combination, 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 conditions that affect vesting (and expense recognition), and subsequent adjustments due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, represent critical accounting policies that reflect the 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 US$ as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, British Virgin Islands, Hong Kong, Singapore, United States, India, Egypt and other regions is US$ or their respective local currency, while the functional currency of the other subsidiaries incorporated in PRC is Renminbi (“RMB”). In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use RMB or their respective local currency as their functional currency, have been translated into US$. 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. |
Cash and cash equivalents and restricted cash | (e) Cash and cash equivalents and restricted cash Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash, cash equivalents and restricted cash presented on the consolidated statements of cash flows included cash, cash equivalents, restricted cash and restricted cash within restricted short-term deposits in the consolidated balance sheets. |
Short-term deposits | (f) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities between three months and one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the periods presented. |
Long-term deposits | (g) Long-term deposits Long-term deposits represent time deposits placed with banks with original maturities more 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 Group 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 In June 2016, the FASB issued 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. The Group adopted ASU 2016-13 from January 1, 2020 and maintains an allowance for credit losses in accordance with Topic 326 and records the allowance for credit losses as an offset to accounts receivable. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. The Company using modified-retrospective transition approach with a cumulative-effect adjustment to shareholders’ equity amounting to US$1.7 million recognized as of January 1, 2020. |
Financing receivables | (j) Financing receivables Financing receivables represent receivables derived from finance business, including micro-credit personal loans and corporate loans. Financing receivables are recorded at amortized cost, reduced by a valuation allowance estimated as of the balance sheet date. The amortized cost is equal to the unpaid principal amount, accrued interest receivables and net deferred origination costs. The origination costs are the direct costs attributable to originating the financing charged by third-party companies. The cash flows related to the principal of finance business are included in the investing activities category in the consolidated statement of cash flows. 2. Principal accounting policies (continued) (j) Financing receivables (continued) Micro-credit personal loans The Group provides micro loans to qualified individual borrowers. The micro loan periods granted to the borrowers generally range from one month to twelve months. The Group has ceased to extend credit in our PRC internet micro-financing business since the second half of 2019. Corporate loans The Group provides loans to corporate borrowers mainly through sales-and-leaseback model. Under the sales-and-leaseback arrangement, the Group, who is also the lender, purchases machinery and equipment from lessees, who are also the borrowers, and leases the purchased equipment back to the lessees for a number of years. In a sales-and-leaseback arrangement, the transaction is in substance a collateral financing. The Group has ceased to extend credit in the corporate loans business since 2019. Allowance for financing receivables The Group assesses the allowance for credit losses on financing receivables at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Group adopted ASU 2016-13 from January 1, 2020 and maintains an allowance for credit losses in accordance with Topic 326 and records the allowance for credit losses as an offset to financing receivable. The Company assesses collectability by reviewing financing receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. |
Investments | (k) Investments Equity Investments with Readily Determinable Fair Values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Gains or losses arising from changes in fair value of these investments are recorded in earnings. Equity Investments without Readily Determinable Fair Values After the adoption of this new accounting standard, the Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. 2. Principal accounting policies (continued) (k) Investments (continued) Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment (which would require an adjustment to estimated fair value) 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. Available-for-sale debt investments Available-for-sale debt investment of the Group is a convertible bond issued by a private company that is redeemable at the Group’s option, which is measured at fair value. Interest income is recognized in earnings. All other changes in the carrying amount of this debt investment are recognized in other comprehensive income (loss). |
Property and equipment | (l) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Residual Estimated useful lives rate Buildings 40 years 0 % Servers, computers and equipment 3-5 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Renovation of buildings 10 years 0 % Motor vehicles 4 years 0%-5 % Furniture, fixture and office equipment 3-5 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. 2. Principal accounting policies (continued) |
Business combinations | (m) 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 business acquired, the difference is recognized directly in the consolidated statements of comprehensive income. |
Intangible assets | (n) Intangible assets Intangible assets mainly consist of trademark, customer relationships, non-compete agreement, operating rights, software, domain names, technology, license and others. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Trademark 6 - 10 years Customer relationships 3 years Licenses 15 years Non-compete agreement 1 year Operating rights Shorter of the economic life or contract terms Software 1-5 years Domain names 10-15 years Technology 5-6 years Others Shorter of the economic life or contract terms |
Land use rights | (o) Land use rights Land use rights are carried at cost less accumulated amortization. Amortization of the land use rights is made on straight-line basis over 40 years from the date when the Group first obtained the land use rights certificate from the local authorities. In 2021, the Group entered into an agreement with bank and borrowed loans amounting to US$7.4 million recorded in other non-current liabilities as of December 31, 2021 were pledged by the Group’s land use right amounting to US$256.1 million as of December 31, 2021 to the parcel of land located in Guangzhou and the Group’s entitlement to the rental income from such building. |
Impairment of long-lived assets | (p) 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 group 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 asset group 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 long-lived assets recorded in general and administrative expenses for the years ended December 31, 2019, 2020 and 2021 were amounting to US$1,195, nil and, nil respectively. |
Goodwill | (q) 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 | (r) Annual test for impairment of goodwill The Group assesses goodwill for impairment in accordance with ASC subtopic 350-20, Intangibles-Goodwill and Other: Goodwill ("ASC 350-20"), which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. A reporting unit is defined as an operating segment or one level below an operating segment referred to as a component. The Group determines its reporting units by first identifying its operating segments, and then assesses whether any components of these segments constituted a business for which discrete financial information is available and where the Company's segment manager regularly reviews the operating results of that component. The Group determined that it has one reporting unit because components below the consolidated level either did not have discrete financial information or their operating results were not regularly reviewed by the segment manager. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step two to measure the impairment loss. The Group adopted this guidance on a prospective basis on January 1, 2020 with no material impact on its consolidated financial statements and related disclosures as a result of adopting the new standard. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative impairment test in accordance with ASC 350-20. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. As of December 31, 2020 and 2021, the fair value of the Group's reporting unit was substantially greater than the respective carrying value, and therefore goodwill related to the Group's reporting unit was not impaired. |
Convertible bonds | (s) Convertible bonds Before January 1, 2021, the Company 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. On January 1, 2021, the Company early adopted ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” using modified-retrospective transition approach. Pursuant to ASU 2020-06, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. Following the adoption of this guidance, the amount previously allocated to additional paid-in capital was reclassified as a liability and a cumulative effect adjustment of US$86.7 million was credited to retained earnings as of January 1, 2021. |
Mezzanine equity and non-controlling interest | (t) Mezzanine equity and non-controlling interests 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 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 a cumulative 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 interests 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 | (u) Revenue Revenue recognition and significant judgments Revenues from live streaming are mainly generated from Bigo Live, Likee and Hago platforms. Other revenues are mainly generated from online games, membership, online education, advertising and finance business. Disaggregated revenues are disclosed in Note 33 “Segment Reporting”. Revenues are recognized when control of the promised virtual items or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those virtual items or services. The 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 without expiry. As the virtual currency is often consumed soon after it is purchased based on history of turnover, the Group considers the impact of the breakage amount for virtual currency coupons is insignificant. 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. 2. Principal accounting policies (continued) (u) Revenue (continued) Revenue recognition and significant judgments (continued) (i) Live streaming Live streaming mainly consists of Bigo Live, Likee and Hago platforms. It generates revenue from sales of virtual items in the platforms. Users can access the platforms and view the live streaming content showed by the performers. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with performers and talent agencies in accordance with their revenue sharing arrangements. Those performers who do not have revenue sharing arrangements with the Group are not entitled to any revenue sharing fee. The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid to performers and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined 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. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as the noble member program. Judgments are required as follow: 1) determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together, 2) determining the standalone selling price for each distinct performance obligation, and 3) allocating of the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. Certain virtual items are provided to customers over time and have the same pattern of transfer to customers. The Group exercises judgement in determining the number of distinct performance obligations by accounting for services that have the same pattern of transfer to customers as a single performance obligation. In instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. As the Group’s live streaming virtual items are generally sold without right of return and the Group does not provide any other credit and incentive to its users, therefore accounting of variable consideration when estimating the amount of revenue to recognize is not applicable to the Group’s live streaming business. (ii) Others Other revenues mainly generated from online games, membership, online education, advertising, finance business and e-commerce business. 2. Principal accounting policies (continued) (u) Revenue (continued) Revenue recognition and significant judgments (continued) (ii) Others (continued) (1) Online games revenues The Group generates revenues from offering virtual items in online games developed by third parties or the Group itself to game players. Historically, the majority of online games revenues for the years ended December 31, 2019, 2020 and 2021 were derived from third parties developed games. The Group disposed of its major online games business to a third party in 2019. 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. Pursuant to contracts signed between the Group and the respective game developers, game developers own the games’ copyrights and other intellectual property, and take primary responsibilities of game development and game operation, including designing, developing and updating of the games related to game content, pricing of virtual items, providing ongoing updates of new contents and bug fixing. 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. Therefore, revenues derived from third party developed games are recorded on a net basis, net of the amount paid to game developers. 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. The estimated user relationship period is based on data collected from those users who have acquired game tokens. Revenues from in-game payments of each month are recognized over the user relationship period estimated for that game. (2) Membership The Group operates a membership subscription program where subscription members can have enhanced user privileges. 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. (3) Online education revenues Educational programs and services consist of vocational training, language training courses and K-12 afterschool education 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. 2. Principal accounting policies (continued) (u) Revenue (continued) Revenue recognition and significant judgments (continued) (ii) Others (continued) (4) Advertising revenues The Group primarily generates 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. The Group enters into advertising contracts directly with advertisers or third-party advertising agencies that represent advertisers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 1 to 3 months. Both third-party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. In instances where the timing of revenue recognition differs from the timing of billing, the Group has determined the advertising contracts generally do not include a significant financing component. The primary purpose of the credits terms is to provide customers with simplified and predictable ways of purchasing the Group’s advertising services, not to receive financing from its customers or to provide customers with financing. Certain customers may receive sales incentives in the forms of discounts and rebates to advertisers or advertising agencies based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. The Group believes that there will not be significant changes to the estimates of variable consideration. (5) Financing revenues The Group generates revenues from micro-credit personal loans provided to individual borrowers and corporate loans to corporate customers. The Group recognizes financing income related to those services over the life of the underlying financing using the effective interest method on unpaid principal amounts after net of loan origination cost. The Group does not accrue financing revenues when financing receivables is placed on non-accrual status. Financing revenues will be recognized when cash is received on a cash basis cost recovery method by applying first to reduce principal and then to interests thereafter. The Group has ceased to operate in the financing business during 2019. 2. Principal accounting policies (continued) (u) Revenue (continued) Revenue recognition and significant judgments (continued) (ii) Others (continued) (6) E-commerce business revenues The Company operates several e-commerce platforms and displays goods for end customers to select and order. The Group is responsible to arrange delivery of the goods to the end customers after customers place an order in the platforms. The Group recognizes e-commerce business revenue equal to the sales price (net of sales discount) to the end customers when control of the inventory is transferred. Revenues derived from e-commerce business are recorded on a gross basis, because (i) the Group is primarily responsible for fulfilling the promise to provide the specified good, (ii) the Group is subject to inventory risks before the specified goods have been transferred to a customer or after transfer of control to the customers, and (iii) the Group has discretion in establishing the price of the specified goods. Contract balances The Group collects accounts receivable from various online payment platforms, distribution platforms and advertising customers. The allowance of expected credit loss of receivables reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The Group determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. The activity in the allowance for doubtful accounts for the periods presented is disclosed and detailed in Note 9. The opening balance of accounts receivable was US$95,803 as of January 1, 2020. As of December 31, 2020 and 2021, accounts receivable were US$142,999 and US$114,372, respectively. During the years ended December 31, 2019, 2020 and 2021, the Group recognized an addition of US$13, an addition of US$6,726 and an addition of US$5,039 of allowance for accounts receivable, respectively. Contract liabilities primarily consists of deferred revenue for unconsumed virtual items and unamortized revenue from virtual items in the Group’s platforms, where there is still an obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met. The opening balance of deferred revenue related to live streaming business as of January 1, 2020 was US$25,021. As of December 31, 2020 and 2021, deferred revenue related to live streaming business were US$65,979 and US$64,356, respectively. During the years ended December 31, 2020 and 2021, the Group recognized revenue of live streaming business amounted to US$23,203 and US$63,450, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. 2. Principal accounting policies (continued) (u) Revenue (continued) Contract balances (continued) The opening balance of deferred revenue related to other revenue as of January 1, 2020 was US$5,106. As of December 31, 2020 and 2021, deferred revenue related to other revenue were US$4,383 and US$2,976, respectively. During the years ended December 31, 2020 and 2021, the Group recognized revenue of other revenue amounted to US$4,427 and US$3,780, respectively, that was included in the corresponding contract liability balance at the beginning of the periods. During the years ended December 31, 2019, 2020 and 2021, the Group does not have any arrangement where the performance obligations have already been satisfied in the past year, but the corresponding revenue is recognized in a later year. As of December 31, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligation is US$67,332, the Group expects to recognize US$60,910 performance obligation as revenue in 2022, the remaining performance obligation is expected to be recognized as revenue in 2023 and after years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term. |
Advances from customers and deferred revenue | (v) 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 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 | (w) 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 primarily consists of (i) revenue sharing fees and content costs, including payments to various channel owners and performers, and content providers, (ii) bandwidth costs, (iii) payment handling costs, (iv) salary and welfare, (v) technical service fee, (vi) depreciation and amortization expense for servers, other equipment and intangibles directly related to operating the platform, (vii) share-based compensation and (viii) other costs. The Group was subject to surcharges of VAT, which are calculated based on 12% of the VAT paid for the years ended December 31, 2019, 2020 and 2021. The Group reported other taxes and surcharges 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%, 9% or 13% VAT and related surcharges on revenues generated by the Group’s subsidiaries based on the Group’s contractual arrangements entered into with the Group’s VIEs. |
Research and development expenses | (x) Research and development expenses Research and development expenses primarily consist 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 Group 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 Group has not capitalized any costs related to internal use software during the years ended December 31, 2019, 2020 and 2021, respectively. |
Sales and marketing expenses | (y) Sales and marketing expenses Sales and marketing expenses primarily consist of (i) advertising and market promotion expenses, (ii) amortization of certain intangible assets from business acquisitions, and (iii) salary and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to approximately US$310,496, US$388,504 and US$383,603 during the years ended December 31, 2019, 2020 and 2021, respectively. |
General and administrative expenses | (z)General and administrative expenses General and administrative expenses primarily consist of (i) share-based compensation for management and administrative personnel, (ii) salary and welfare for general and administrative personnel, (iii) impairment charges (if any), and (iv) professional service fees. |
Employee social security and welfare benefits | (aa)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 US$42,853, US$50,621 and US$67,733 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Share-based compensation | (bb) 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, restricted share units and ordinary shares of the Company’s subsidiaries to eligible employees, officers, directors, and non-employee consultants. 2. Principal accounting policies (continued) (bb) Share-based compensation (continued) 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. The Group 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 Group 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. ASU 2017-09, Compensation—Stock Compensation (Topic 718), Scope of Modification Accounting, provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the followings are met: - - - The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this ASU 2017-09. The Group adopted these amendments to Subtopic 718-10 and there was no impact on the consolidated financial statements for the years presented. 2. Principal accounting policies (continued) (bb) Share-based compensation (continued) The details of the Group’s share-based awards are disclosed in Note 26. Fair value determination of these share-based awards is summarized as below: (1) Restricted share units In determining the fair value of restricted share units granted, the fair value of the underlying shares of JOYY on the grant dates is applied. The grant date fair value of restricted share units is based on stock price of JOYY in the Nasdaq Global Select Market. (2) 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 stock price of JOYY in the Nasdaq Global Select Market, 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) Restricted shares Upon the acquisition of Bigo, Class A common shares are issued for the replacement awards to Bigo's employees to replace their original share-based awards, namely restricted shares. In determining the fair value of restricted share granted to Bigo's employees, the fair value of the underlying shares of JOYY on the grant dates is applied. The grant date fair value of restricted shares is based on stock price of JOYY in the Nasdaq Global Select Market. |
Other income | (cc) 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. |
Leases | (dd) Leases The Group leases facilities in the PRC under non-cancellable operating leases expiring on different dates. On January 1, 2019, the Company adopted ASU No. 2016-02 (Topic 842) "Leases" using the optional transition method. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840. Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time by assessing whether the Company has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. The main impact of the adoption of the standard is that assets and liabilities amounting to US$21.2 million and US$20.6 million, respectively, were recognized beginning January 1, 2019 for leased office space with terms of more than 12 months. The Company accounts for short-term leases with terms less than 12 months in accordance with ASC 842-20-25-2 to recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The adoption of the standard did not have a significant impact on the Group's consolidated financial statements. Operating leases are included in operating lease right-of-use assets, current lease liabilities and non-current lease liabilities on the consolidated balance sheets. (i) Right-of-use assets Right-of-use assets, which mainly comprise of office lease, are initially measured at the present value of the lease payments. Amortization of the right-of-use assets is made over the lease term on a generally straight-line basis. (ii) Lease liabilities Lease liabilities are lessees' obligations to make the lease payments arising from a lease, measured on a discounted basis. As a lessee, the weighted average remaining lease terms of the right-of-use assets was 1.18 years and the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its incremental borrowing rate. A weighted average incremental borrowing rate of 5.15% was adopted at commencement date in determining the present value of lease payments. For the year ended December 31, 2020, operating lease cost and short-term lease cost were US$17,249 and US$2,826, respectively. There were no other lease cost other than operating lease cost and short-term lease cost for the year ended December 31, 2020. For the year ended December 31, 2020, cash paid for operating leases included in operating cash flows was US$16,599. For the year ended December 31, 2020, lease liabilities arising from obtaining right-of-use assets was US$12,529. For the year ended December 31, 2021, operating lease cost and short-term lease cost were US$6,309 and US$5,651, respectively. There were no other lease cost other than operating lease cost and short-term lease cost for the year ended December 31, 2021. For the year ended December 31, 2021, cash paid for operating leases included in operating cash flows was US$6,588. For the year ended December 31, 2021, lease liabilities arising from obtaining right-of-use assets was US$4,531. 2. Principal accounting policies (continued) (dd) Leases (continued) A maturity analysis of the Company's operating lease liabilities and reconciliation of the undiscounted cash flows to the operating lease liabilities recognized on the consolidated balance sheet was as below: Office rental US$ 2022 12,038 2023 4,368 2024 869 2025 and after 491 Total undiscounted cash flows 17,766 Less: imputed interest (991) Present value of lease liabilities 16,775 |
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, 2019, 2020 and 2021. As of December 31, 2020 and 2021, 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% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the company. Appropriation to the staff bonus and welfare fund is at the company’s discretion. 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% of the after-tax profits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. 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 years ended December 31, 2019, 2020 and 2021, appropriations to general reserve fund and statutory surplus fund amounted to US$6,856, US$4,445 and US$8,979, respectively. |
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. |
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 or other potentially dilutive equity instruments, when they are dilutive under the treasury stock method or the if-converted method. |
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. As of December 31, 2020 and 2021, accumulated other comprehensive income/loss of the Group is 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 segment results when making decisions about allocating resources and assessing performance of the Group. |
Assets held for sale | (ll) Assets held for sale The Group classifies a long-live asset (disposal group) as held for sale in the period in which all of the following criteria are met: a) Management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); b) The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); c) An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; d) The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph 360-10-45-11; e) The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and f) Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. For a component that meets the criteria of held-for-sale, the historical financial results are reflected in the Group’s consolidated financial statements as discontinued operations. |
Recently issued accounting pronouncements | (mm) Recently issued accounting pronouncements Recently adopted accounting pronouncements 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 Group adopted ASU 2016-13 from January 1, 2020 using modified-retrospective transition approach with a cumulative-effect adjustment to shareholders' equity amounting to US$1.7 million recognized as of January 1, 2020. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force). The amendments in this update clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Group adopted the ASU on January 1, 2021, which did not have a material impact on the Group's financial results or financial position. 2. Principal accounting policies (continued) (mm) Recently issued accounting pronouncements (continued) Recently adopted accounting pronouncements (continued) In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity. ASU 2020-06 simplifies an issuer's accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update will be effective for the Company's fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company adopted ASU 2020-06 on January 1, 2021 and a cumulative effect adjustment of US$86.7 million was credited to retained earnings as of January 1, 2021. Recently issued accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes" to remove specific exceptions to the general principles in Topic 740 and to simplify accounting for income taxes. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The standard is effective for the fiscal year beginning January 1, 2022. The Company does not expect ASU 2019-12 to have a material impact to the Company’s consolidated financial statements and related disclosure. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting” in Topic 848. The standard is effective for all entities as of March 12, 2020 through December 31, 2022. The standard provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company does not expect ASU 2020-04 to have a material impact to the Company’s consolidated financial statements and related disclosure. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832). This ASU requires business entities to disclose information about government assistance they receive if the transactions were accounted for by analogy to either a grant or a contribution accounting model. The disclosure requirements include the nature of the transaction and the related accounting policy used, the line items on the balance sheets and statements of operations that are affected and the amounts applicable to each financial statement line item and the significant terms and conditions of the transactions. The ASU is effective for annual periods beginning after December 15, 2021. The disclosure requirements can be applied either retrospectively or prospectively to all transactions in the scope of the amendments that are reflected in the financial statements at the date of initial application and new transactions that are entered into after the date of initial application. The ASU is currently not expected to have a material impact on the Group's financial results or financial position. |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization and principal activities | |
Schedule of details of the principal subsidiaries and VIEs | % of direct Date of or indirect Place of incorporation or economic Name incorporation acquisition ownership 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”) PRC March 19, 2008 100 % Investment holding Guangzhou Huanju Shidai Information Technology Co., Ltd. (“Guangzhou Huanju Shidai”) PRC December 2, 2010 100 % Software development Hago Singapore Pte. Ltd. (“Hago Singapore”) Singapore May 7, 2018 100 % Internet value added services Bigo Cayman Islands March 4, 2019 100 % Investment holding Bigo Technology Pte. Ltd. (“Bigo Singapore”) Singapore March 4, 2019 100 % Investment holding, operation of live streaming platform Bigo (Hong Kong) Limited (“Bigo HK”) Hong Kong March 4, 2019 100 % Investment holding Guangzhou BaiGuoYuan Information Technology Co., Ltd. (“BaiGuoYuan Technology”) PRC March 4, 2019 100 % Software development and provision of information technology services Principal VIEs Guangzhou Huaduo Network Technology Co., Ltd. (“Guangzhou Huaduo”) PRC April 11, 2005 Holder of internet content provider licenses and internet value added services Guangzhou BaiGuoYuan Network Technology Co., Ltd. (“Guangzhou BaiGuoYuan”) PRC March 4, 2019 Holder of internet content provider licenses and internet value added services |
Principal accounting policies_2
Principal accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Principal accounting policies | |
Schedule of property and equipment estimated useful lives and residual rate | 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 Estimated useful lives rate Buildings 40 years 0 % Servers, computers and equipment 3-5 years 0%-5 % Leasehold improvements Shorter of lease term or 5 years 0 % Renovation of buildings 10 years 0 % Motor vehicles 4 years 0%-5 % Furniture, fixture and office equipment 3-5 years 0%-5 % |
Schedule of amortization of finite-lived intangible assets is computed using the straight-line method over the following estimated useful lives | Intangible assets mainly consist of trademark, customer relationships, non-compete agreement, operating rights, software, domain names, technology, license and others. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Trademark 6 - 10 years Customer relationships 3 years Licenses 15 years Non-compete agreement 1 year Operating rights Shorter of the economic life or contract terms Software 1-5 years Domain names 10-15 years Technology 5-6 years Others Shorter of the economic life or contract terms |
Schedule of undiscounted cash flows to the operating lease liabilities recognized | A maturity analysis of the Company's operating lease liabilities and reconciliation of the undiscounted cash flows to the operating lease liabilities recognized on the consolidated balance sheet was as below: Office rental US$ 2022 12,038 2023 4,368 2024 869 2025 and after 491 Total undiscounted cash flows 17,766 Less: imputed interest (991) Present value of lease liabilities 16,775 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of reconciliation with net income from discontinued operations | For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net income from discontinued operations of YY Live (Note 3(a)) 547,612 482,487 35,567 Net income from discontinued operations of Huya (Note 3(b)) 67,656 919,183 — Net income from discontinued operations as presented in the consolidated statements of comprehensive income 615,268 1,401,670 35,567 |
Held for sale | YY Live | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of assets, liabilities, statement of operations and cash flows of discontinued operations which were included in the Group's consolidated financial statements | As of December 31, 2020 2021 US$ US$ Assets Current assets Cash and cash equivalents 31,600 201,393 Accounts receivable, net 15,481 18,239 Prepayments and other current assets 5,447 4,986 Total current assets 52,528 224,618 Non-current assets Deferred tax assets 5,238 4,294 Property and equipment, net 9,180 10,356 Intangible assets, net 7,363 7,456 Other non-current assets 3,719 3,814 Total non-current assets 25,500 25,920 Total assets 78,028 250,538 Liabilities Current liabilities Accounts payable — 1,117 Deferred revenue 50,070 49,495 Advances from customers 12,377 12,663 Income taxes payable 3,221 9,787 Accrued liabilities and other current liabilities 113,441 139,282 Total current liabilities 179,109 212,344 Non-current liabilities Deferred revenue 4,415 — Total non-current liabilities 4,415 — Total liabilities 183,524 212,344 (a) Disposal of YY Live business (continued) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net revenues Live streaming 1,554,947 1,399,212 151,445 Others 34,919 41,363 2,980 Total net revenues 1,589,866 1,440,575 154,425 Cost of revenues (1) (827,266) (773,988) (88,900) Gross profit 762,600 666,587 65,525 Operating expenses (1) Research and development expenses (56,874) (52,519) (6,323) Sales and marketing expenses (73,487) (84,303) (8,954) General and administrative expenses (28,779) (22,116) (7,108) Total operating expenses (159,140) (158,938) (22,385) Other income 29,414 23,935 611 Operating income 632,874 531,584 43,751 Interest income and investment income 355 419 355 Income before income tax expenses 633,229 532,003 44,106 Income tax expenses (85,617) (49,516) (8,539) Net income from discontinued operations 547,612 482,487 35,567 For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net cash provided by discontinued operating activities 559,878 478,357 64,289 Net cash (used in) provided by discontinued investing activities (27,981) 6,819 1,636,450 * (1) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Cost of revenues 1,256 1,645 (426) Research and development expenses 8,271 6,656 (703) Sales and marketing expenses 261 189 (39) General and administrative expense 10,593 4,928 (175) |
Held for sale | Huya | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of assets, liabilities, statement of operations and cash flows of discontinued operations which were included in the Group's consolidated financial statements | For the year ended December 31, 2019 2020 US$ US$ Net revenues Live streaming 1,155,066 326,094 Others 57,634 19,707 Total net revenues 1,212,700 345,801 Cost of revenues (1) (998,289) (277,954) Gross profit 214,411 67,847 Operating expenses (1) Research and development expenses (73,527) (22,477) Sales and marketing expenses (63,510) (15,279) General and administrative expenses (51,156) (20,743) Total operating expenses (188,193) (58,499) Other income 11,500 1,624 Operating income 37,718 10,972 Interest income and investment income 44,076 12,293 Foreign currency exchange gains (losses), net 166 (205) Gain on fair value changes of investments — 310 Other non-operating expenses (1,435) Income before income tax expenses 81,960 21,935 Income tax expenses (13,910) (5,384) Net income 68,050 16,551 Share of income in equity method investments, net of income taxes (394) (145) Gain on disposal, net of tax — 902,777 Net income from discontinued operations 67,656 919,183 For the year ended December 31, 2019 2020 US$ US$ Net cash provided by discontinued operating activities 283,835 19,506 Net cash (used in) provided by discontinued investing activities (534,853) 85,552 Net cash provided by discontinued financing activities 308,219 1,232 For the year ended December 31, 2019 2020 US$ US$ Cost of revenues 4,545 2,354 Research and development expenses 12,433 5,309 Sales and marketing expenses 852 375 General and administrative expenses 22,969 13,558 |
Certain risks and concentrati_2
Certain risks and concentration (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Certain risks and concentration | |
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, 2020 2021 US$ US$ Assets Current assets Cash and cash equivalents 248,300 433,405 Restricted cash and cash equivalents 536 7,364 Short-term deposits 669,742 308,986 Restricted short-term deposits 30,652 — Short-term investments 266,647 288,944 Accounts receivable, net 25,885 5,880 Amounts due from Group companies 364,025 263,373 Amounts due from related parties 1,704 9,684 Financing receivables, net 50 — Prepayments and other current assets 55,593 101,173 Assets held for sale 75,839 — Total current assets 1,738,973 1,418,809 Non-current assets Investments 381,867 235,277 Property and equipment, net 156,494 171,831 Land use rights, net 258,770 370,052 Intangible assets, net 84,236 58,893 Right of use asset, net 6,461 4,911 Other non-current assets 6,151 1,055 Assets held for sale 19,896 — Total non-current assets 913,875 842,019 Total assets 2,652,848 2,260,828 Liabilities Current liabilities Accounts payable 16,045 14,200 Deferred revenue 17,140 13,873 Advances from customers 29 1,242 Income taxes payable 19,492 25,606 Accrued liabilities and other current liabilities 108,450 114,325 Amounts due to Group companies 151,073 131,887 Amounts due to related parties 2,274 1,024 Lease liabilities due within one year 4,702 3,077 Short-term loans 102,538 — Liabilities held for sale 178,744 — Total current liabilities 600,487 305,234 Non-current liabilities Lease liabilities 1,982 2,096 Deferred revenue 1,487 3,849 Deferred tax liabilities 10,866 9,105 Other non-current liabilities — 7,372 Liabilities held for sale 4,415 — Total non-current liabilities 18,750 22,422 Total liabilities 619,237 327,656 4. Certain risks and concentration (continued) (a) PRC regulations (continued) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net revenues from Group companies 29,581 79,609 109,618 Net revenues from third parties 283,044 396,343 447,471 Cost of sales from Group companies (80,739) (216,696) (60,053) Cost of sales from third parties (200,860) (298,715) (347,674) Total operating expenses (232,406) (514,889) (293,959) Other items of the consolidated statements of comprehensive income 31,035 23,244 22,305 Net loss from continuing operations (170,345) (531,104) (122,292) For the year ended December 31, 2019 2020 2021 US$ US$ US$ Net cash provided by (used in) operating activities with Group companies (31,178) (344,858) 77,319 Net cash (used in) provided operating activities with third parities (31,422) (73,830) 153,715 Net cash used in investing activities with Group companies (84,393) (104,111) (35,559) Net cash provided by (used in) investing activities with third parities (546,963) (47,787) 170,112 Net cash provided by (used in) financing activities with Group companies (51,848) 25,219 5,378 Net cash provided by (used in) financing activities with third parities 39,458 21,690 (97,198) (706,346) (523,677) 273,767 |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BIGOINC | |
Business Acquisition [Line Items] | |
Summary of components of the purchase consideration transferred | As of acquisition date US$ Cash 343,062 Fair value of common shares issued 1,149,073 Fair value of previously held equity interest in Bigo 849,700 Elimination of preexisting amounts due from Bigo 48,174 Total consideration 2,390,009 |
Summary of fair value of the assets acquired and liabilities assumed allocated on the acquisition date | As of acquisition date Amortization period US$ Net tangible assets acquired: -Cash and cash equivalents, restricted cash and cash equivalents and restricted short-term deposits 95,965 -Accounts receivables 57,647 -Other current assets 7,820 -Property and equipment, net 43,853 -Other non-current assets 26,076 Identifiable intangible assets acquired: -Trademark 358,000 10 years -Customer relationships 153,200 3 years -Non-compete agreement 12,100 1 year -Others 924 Accrued liabilities and other liabilities (172,539) Deferred tax liabilities (47,258) Goodwill 1,854,221 Total 2,390,009 |
Summary of pro forma information | For the year ended December 31, 2019 US$ Pro forma net revenues 998,828 Pro forma net loss (498,127) |
Other acquisition | |
Business Acquisition [Line Items] | |
Summary of components of the purchase consideration transferred | As of acquisition date US$ Cash 9,611 Fair value of subsidiary’s common share issued 53,810 Fair value of previously held equity interest in the acquiree 27,716 Total consideration 91,137 |
Summary of fair value of the assets acquired and liabilities assumed allocated on the acquisition date | As of acquisition date Amortization period US$ Net tangible assets acquired: -Cash and cash equivalents 7,296 -Accounts receivables 1,376 -Other current assets 1,987 -Property and equipment, net 142 Identifiable intangible assets acquired: -Technology 11,917 6 years -Trademark 11,839 6 years -Customer relationships 903 3 years Accounts payable (2,268) Accrued liabilities and other liabilities (1,579) Deferred tax liabilities (4,069) Goodwill 84,925 Non-controlling interests (21,332) Total 91,137 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents balance | December 31, 2020 December 31, 2021 US$ US$ Amount equivalent Amount equivalent US$ 1,306,404 1,306,404 1,220,064 1,220,064 RMB 2,691,718 412,530 3,462,640 543,099 Others N/A 23,815 N/A 74,022 Total 1,742,749 1,837,185 |
Short-term deposits (Tables)
Short-term deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term deposits | |
Schedule of Deposit Assets | December 31, 2020 December 31, 2021 US$ US$ Amount equivalent Amount equivalent RMB 4,470,002 685,068 2,170,000 340,355 US$ 640,000 640,000 1,263,843 1,263,843 Total 1,325,068 1,604,198 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable, net | |
Schedule of accounts receivable, net | December 31, 2020 2021 US$ US$ Accounts receivable, gross 150,386 126,798 Less: allowance for expected credit loss of receivables (7,387) (12,426) Accounts receivable, net 142,999 114,372 |
Summary of allowance for doubtful accounts | The following table summarizes the details of the Group’s allowance for doubtful accounts: For the year ended December 31, 2019 2020 2021 US$ US$ US$ Balance at the beginning of the year (1,081) (9) (7,387) Adoption of ASC326 — (652) — Additions charged to general and administrative expenses, net (13) (6,726) (5,039) Write-off during the year 1,085 — — Balance at the end of the year (9) (7,387) (12,426) |
Financing receivables, net (Tab
Financing receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable, net | |
Schedule of Gross Financing Receivables | Financing receivables consist of the following: December 31, 2020 2021 US$ US$ Financing receivables, gross Micro-credit personal loans 19,971 20,317 Corporate loans 30,031 — Total 50,002 20,317 Less: allowance for expected credit loss on financing receivables (30,114) (20,317) Financing receivables, net 19,888 — Current portion 172 — Non-current portion 19,716 — |
Past Due Financing Receivables | 1-90 days 91-180 days 181-360 days over 1 year Total Total financing past due past due past due past due past due Current receivables December 31, 2020 Micro-credit personal loans (1) — 4 3,185 16,782 19,971 — 19,971 Corporate loans (2) — — — 29,908 29,908 123 30,031 — 4 3,185 46,690 49,879 123 50,002 December 31, 2021 Micro-credit personal loans (1) — — — 20,317 20,317 — 20,317 |
Allowance for Credit Losses on Financing Receivables | Movement of allowance for expected credit loss on financing receivables (micro-credit personal loans only) is as follows: For the year ended December 31, 2020 2021 US$ US$ Balance at the beginning of the year (26,772) (30,114) Adoption of ASC326 (724) — Addition for the year (2,618) (633) Reclassification to prepayments and other current assets — 10,430 Balance at the end of the year (30,114) (20,317) |
Prepayments and other current_2
Prepayments and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and other current assets | |
Schedule of prepayments and other current assets | December 31, 2020 2021 US$ US$ Interests receivable 36,004 22,082 Value added taxes to be deducted 19,326 28,090 Receivables from payment platforms 13,633 24,512 Employee advances 3,692 4,073 Prepayments and deposits to vendors and content providers 6,547 6,126 Deposits 5,611 5,831 Loans to third parties 99 7,604 Amount due from a lessee of sale-and-leaseback arrangement - net (Note 10) — 20,177 Net assets subject to disposal related to YY Live (Note 3(a)) — 38,194 Others 17,960 57,044 Total 102,872 213,733 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments | |
Schedule of investments | December 31, 2020 2021 US$ US$ Equity investments accounted for using the equity method (i) 832,143 850,557 Equity investments with readily determinable fair values (ii) 184,968 25,480 Equity investments without readily determinable fair values (iii) 221,243 146,418 Available-for-sale debt investment (iv) 1,000 — Total 1,239,354 1,022,455 |
Schedule of equity method investments | December 31, 2020 2021 US$ US$ Current assets 1,948,075 2,223,447 Non-current assets 302,915 552,085 Current liabilities 447,148 601,688 Non-current liabilities 42,817 39,719 For the year ended December 31, 2019 2020 2021 US$ US$ US$ Revenues 110,099 1,405,623 2,082,821 Gross profit 91,040 386,810 466,970 Net income (loss) 31,970 23,563 (81,953) Net income (loss) attributable to the investees 31,972 23,563 (81,953) |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment, net | |
Schedule of property and equipment | Property and equipment consists of the following: December 31, 2020 2021 US$ US$ Gross carrying amount Servers, computers and equipment 301,671 319,393 Buildings 153,093 158,119 Construction in progress 69,890 96,552 Decoration of buildings 15,795 16,194 Leasehold improvements 8,966 8,210 Motor vehicles 6,626 6,585 Furniture, fixture and office equipment 4,788 5,229 Total 560,829 610,282 Less: accumulated depreciation (159,168) (244,890) Property and equipment, net 401,661 365,392 |
Land use rights, net (Tables)
Land use rights, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of land use right | Land use rights consist of the following: December 31, 2020 2021 US$ US$ Gross carrying amount 294,957 415,970 Less: accumulated amortization (36,187) (45,918) Land use rights, net 258,770 370,052 |
User bases | |
Schedule of finite-lived intangible assets, future amortization expense | The estimated amortization expenses for each of the following five years are as follows: Amortization expense of land use rights US$ 2022 9,102 2023 9,102 2024 9,102 2025 9,102 2026 9,102 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of group's intangible assets | The following table summarizes the Group’s intangible assets: December 31, 2020 2021 US$ US$ Gross carrying amount Trademark 359,976 371,975 Customer relationships 153,976 154,906 Non-compete agreement 12,100 12,100 Software 8,473 8,941 Operating rights 7,088 7,255 License 9,721 9,949 Technology 2,707 14,770 Domain names 1,197 1,518 Others 1,413 1,415 Total of gross carrying amount 556,651 582,829 Less: accumulated amortization Trademark (65,649) (102,815) Customer relationships (115,453) (133,921) Non-compete agreement (12,100) (12,100) Software (7,894) (8,270) Operating rights (6,980) (7,144) License (702) (1,382) Technology (1,789) (2,988) Domain names (538) (644) Others (116) (258) Total accumulated amortization (211,221) (269,522) Less: accumulated impairment (1,216) (1,225) Intangible assets, net 344,214 312,082 |
Schedule of weighted average amortization periods of intangible assets | The weighted average amortization periods of intangible assets as of December 31, 2020 and 2021 are as below: December 31, 2020 2021 Trademark 10 years 10 years Customer relationships 3 years 3 years License 15 years 15 years Non-compete agreement 1 year 1 year Operating rights 2 years 2 years Software 3 years 3 years Domain names 14 years 15 years Technology 5 years 6 years Others 10 years 10 years |
Others | |
Schedule of estimated amortization expenses | The estimated amortization expenses for each of the following five years are as follows: Amortization expense of intangible assets US$ 2022 50,749 2023 50,634 2024 42,623 2025 40,953 2026 40,943 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill | |
Schedule of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 are as follows: All other Bigo Total US$ US$ US$ Balance as of December 31, 2019 (i) 1,688 1,854,221 1,855,909 Increase in goodwill related to acquisition 16,067 — 16,067 Foreign currency translation adjustments 107 — 107 Balance as of December 31, 2020 17,862 1,854,221 1,872,083 Increase in goodwill related to acquisition (ii) 84,925 — 84,925 Foreign currency translation adjustments 1,255 — 1,255 Balance as of December 31, 2021 104,042 1,854,221 1,958,263 (i) The increase in goodwill in 2019 was related to the acquisition of Bigo. Please refer to Note 5(a) for the acquisition of Bigo. |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred revenue | |
Schedule of classification of deferred revenue | December 31, 2020 2021 US$ US$ Deferred revenue, current Live streaming 63,450 58,425 Others 3,780 2,485 Total current deferred revenue 67,230 60,910 Deferred revenue, non-current Live streaming 2,529 5,931 Others 603 491 Total non-current deferred revenue 3,132 6,422 |
Accrued liabilities and other_2
Accrued liabilities and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued liabilities and other current liabilities | |
Schedule of accrued liabilities and other current liabilities | December 31, 2020 2021 US$ US$ Revenue sharing fees and content costs 121,083 129,717 Salaries and welfare 112,217 99,725 Marketing and promotion expenses 95,261 58,854 Value added taxes and other taxes payable 88,215 137,142 Bandwidth costs 29,986 19,746 Consideration received related to disposal of YY Live (Note 3(a)) — 1,862,750 Others 37,688 37,904 Total 484,450 2,345,838 |
Short-term loans (Tables)
Short-term loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term loans | |
Schedule of short-term debt | December 31, 2020 2021 US$ US$ Short-term loans 112,549 — |
Convertible bonds (Tables)
Convertible bonds (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term loans | |
Schedule of convertible bonds | December 31, 2020 2021 US$ US$ Non-current 2025 Convertible Senior Notes 410,614 463,319 2026 Convertible Senior Notes 368,611 460,758 Total 779,225 924,077 |
Cost of revenues (Tables)
Cost of revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cost of revenues | |
Schedule of Cost of revenues | For the year ended December 31, 2019 2020 2021 US$ US$ US$ Revenue sharing fees and content costs 305,647 812,706 1,158,435 Payment handling costs 94,127 190,583 212,655 Bandwidth costs 101,957 120,419 96,536 Salary and welfare 56,430 102,330 116,679 Depreciation and amortization 29,480 61,021 87,339 Technical service fee 43,893 59,325 55,874 Share-based compensation 5,932 5,797 8,089 Other costs 19,454 25,965 45,543 Total 656,920 1,378,146 1,781,150 |
Other income (Tables)
Other income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other income | |
Schedule of other income | For the year ended December 31, 2019 2020 2021 US$ US$ US$ Government grants 4,514 6,518 16,947 Others 1,160 1,577 3,429 Total 5,674 8,095 20,376 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income tax | |
Schedule of the current and deferred portions of income tax expense included in the consolidated statements of comprehensive income | 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, 2019 2020 2021 US$ US$ US$ (Loss) income before income tax expenses PRC entities (117,953) (170,994) (55,908) Non-PRC entities 23,211 184,651 (21,681) Total (94,742) 13,657 (77,589) Current income tax benefit (expenses) PRC entities 4,655 (6,278) (15,026) Non-PRC entities (4,276) (8,931) (20,524) Total 379 (15,209) (35,550) Deferred income tax benefit (expenses) PRC entities 4,843 (6,376) 1,013 Non-PRC entities 14,876 (6,240) 8,792 Total 19,719 (12,616) 9,805 Income tax benefit (expenses) PRC entities 9,498 (12,654) (14,013) Non-PRC entities 10,600 (15,171) (11,732) Total 20,098 (27,825) (25,745) |
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, 2019 2020 2021 Singapore statutory income tax rate (*) 17.0 % 17.0 % 17.0 % Effect of tax holiday and preferential tax benefit 30.6 % (163.2) % 20.9 % Effect of different tax rates available to different jurisdictions (i) 24.0 % (60.1) % 47.6 % Permanent differences (ii) (0.5) % 151.9 % (66.3) % Change in valuation allowance (68.6) % 484.7 % (95.2) % Effect of Super Deduction available to the Group 18.7 % (226.6) % 42.8 % Effective income tax rate 21.2 % 203.7 % (33.2) % *: As a majority of the Group’s businesses is subject to Singapore corporate tax rate, the reconciliation of tax expenses begins at Singapore statutory income tax rate. 23. Income tax (continued) Composition of income tax expense (continued) (10) The effect of different tax rates available to different jurisdictions was mainly due to the re-measurement gain of the previously held equity interest in Bigo on the acquisition date incurred by Duowan BVI whose applicable tax rate is zero for the year ended December 31, 2019. (11) 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, 2020 2021 US$ US$ Deferred tax assets: Tax loss carried forward 123,884 176,009 Allowance for expected credit loss of receivable, accrued expense and others not currently deductible for tax purposes 35,969 33,341 Deferred revenue 4,576 5,346 Impairment of investment 3,607 7,632 Others 1,177 — Valuation allowance (i) (150,252) (213,688) Amounts offset by deferred tax liabilities (18,961) (8,640) Total deferred tax assets, net — — Deferred tax liabilities: Related to the fair value changes of investments 23,118 9,061 Related to acquired intangible assets 36,767 34,013 Others 1,498 1,780 Amounts offset by deferred tax assets (18,961) (8,640) Total deferred tax liabilities, net 42,422 36,214 (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. |
Summary of valuation allowance | Movement of valuation allowance For the year ended December 31, 2019 2020 2021 US$ US$ US$ Balance at beginning of the year (24,980) (87,106) (150,252) Additions (78,269) (96,629) (119,999) Reversals 16,143 33,483 56,563 Balance at end of the year (87,106) (150,252) (213,688) |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based compensation | |
Summary of the restricted share units activity | Weighted Number of average restricted grant-date shares fair value (US$) Outstanding, December 31, 2018 25,229,634 4.9639 Granted 16,114,095 3.0005 Forfeited (6,381,786) 4.7840 Vested (7,848,811) 4.7427 Outstanding, December 31, 2019 27,113,132 3.9034 Granted 62,770,405 3.6059 Forfeited (10,312,521) 3.9198 Vested (6,918,126) 4.3045 Outstanding, December 31, 2020 72,652,890 3.6059 Granted 9,387,270 3.6323 Forfeited (42,872,565) 3.5461 Vested (15,139,700) 3.6104 Outstanding, December 31, 2021 24,027,895 3.7202 Expected to vest as of December 31, 2021 21,487,110 3.7203 |
Summary of restricted shares activity | Weighted Number of average restricted grant-date fair shares value (US$) Outstanding, December 31, 2018 — — Replacement due to acquisition of Bigo 38,042,760 3.6100 Granted 16,041,327 3.4750 Forfeited (7,279,877) 3.6302 Vested (8,599,959) 3.6608 Outstanding, December 31, 2019 38,204,251 3.5267 Granted 4,541,086 3.9739 Forfeited (4,554,972) 3.5287 Vested (11,770,000) 3.6290 Outstanding, December 31, 2020 26,420,365 3.5577 Granted 7,888,160 3.0435 Forfeited (8,661,973) 3.7025 Vested (10,497,147) 3.4862 Outstanding, December 31, 2021 15,149,405 3.2566 Expected to vest as of December 31, 2021 13,334,495 3.2151 |
Summary of stock option activity | Movements in the number of share options granted and their related weighted average exercise prices are as follows: Weighted Weighted average Aggregate average remaining intrinsic Number of exercise contractual life value options price (US$) (years) (US$) Outstanding, January 1, 2019 10,934,300 4.7025 5.29 — Granted 438,100 3.5350 Forfeited (1,065,000) 4.5225 Outstanding, December 31, 2019 10,307,400 3.8069 5.45 — Outstanding, December 31, 2020 10,307,400 3.8069 4.45 3,669 Forfeited (893,000) 3.8830 Outstanding, December 31, 2021 9,414,400 3.7997 2.80 — Expected to vest as of December 31, 2021 9,414,400 3.7997 2.80 — Exercisable as of December 31, 2021 6,444,200 3.9216 2.97 — |
Schedule of stock option fair value assumptions | The Company has used binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions are set as below: 2019 Weighted average fair value per option granted 1.7582 Weighted average exercise price 3.5350 Weighted average Risk-free interest rate (1) 1.82 % Expected term (in year) (2) 6 Expected volatility (3) 56 % Dividend yield (4) — (1) The risk-free interest rate of periods within the contractual life of the share option is based on US Treasury Bonds of similar tenor at the valuation dates. (2) The expected term is the contract life of the option. 26. Share-based compensation (continued) (a) JOYY’s share-based awards (continued) (iii) Share options (continued) (3) Expected volatility is estimated based on the average of historical volatilities of the Company at the valuation dates. (4) The Company has no history or expectation of paying dividend on its common shares before December 31,2019. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. |
Basic and diluted net income _2
Basic and diluted net income per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basic and diluted net income per share | |
Schedule of calculation of basic and diluted net income per share | Basic and diluted net income per share for the years ended December 31, 2019, 2020 and 2021 are calculated as follows: For the year ended December 31, 2019 2020 2021 US$ US$ US$ Numerator: Net loss from continuing operations attributable to common shareholders of JOYY Inc. (74,344) (28,305) (125,096) Numerator for diluted loss per share from continuing operations (74,344) (28,305) (125,096) Net income from discontinued operations attributable to common shareholders of JOYY Inc. 574,592 1,391,638 35,567 Incremental dilution from Huya (1) (2,033) (655) — Numerator for diluted income per share from discontinued operations 498,215 1,362,678 (89,529) Denominator: Denominator for basic calculation—weighted average number of Class A and Class B common shares outstanding 1,544,396,920 1,600,199,759 1,562,016,001 Denominator for diluted calculation 1,544,396,920 1,600,199,759 1,562,016,001 Basic net income (loss) per Class A and Class B common share 0.32 0.85 (0.06) Continuing operations (0.05) (0.02) (0.08) Discontinued operations 0.37 0.87 0.02 Diluted net income (loss) per Class A and Class B common share 0.32 0.85 (0.06) Continuing operations (0.05) (0.02) (0.08) Discontinued operations 0.37 0.87 0.02 Basic net income (loss) per ADS* 6.48 17.04 (1.14) Continuing operations (0.96) (0.35) (1.60) Discontinued operations 7.44 17.39 0.46 Diluted net income (loss) per ADS* 6.45 17.04 (1.14) Continuing operations (0.96) (0.35) (1.60) Discontinued operations 7.41 17.39 0.46 * Each ADS represents 20 common shares. (1) In calculation of diluted net income per share, assuming a dilutive effect, all of Huya’s existing unvested restricted share units and unexercised share options are treated as vested and exercised by Huya under the treasury stock method, causing the decrease percentage of the weighted average number of shares held by the Company in Huya. As a result, Huya’s net income (loss) attributable to the Company on a diluted basis decreased accordingly, which is presented as “incremental dilution from Huya” in the table. |
Schedule of shares outstanding were excluded from the calculation of diluted net (loss) income per share | For the year ended December 31, 2019 2020 2021 Shares issuable upon exercise of share options 10,307,400 10,307,400 9,414,400 Shares issuable upon exercise of restricted share units 27,113,132 72,652,890 24,027,895 Shares issuable upon exercise of restricted share 38,204,251 26,420,365 15,149,405 Shares issuable upon conversion of convertible bonds 208,542,000 210,568,000 201,677,195 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions | |
Schedule of related parties and their relationships with the Group | The table below sets forth the major related parties and their relationships with the Group: Major related parties Relationship with the Group Guangzhou Sunhongs Corp., Ltd. (“Guangzhou Sunhongs”) (Formerly known as Guangzhou Shanghang Information Technology Co., Ltd.) Significant influence exercised by a principal shareholder of the Company Kingsoft Cloud Holdings Limited Significant influence exercised by a principal shareholder of the Company Shopline Limited (“Shopline Group”) Investment with significant influence Xiaomi Corporation (“Xiaomi Group”) Controlled by a principal shareholder of the Company Huya * Investment with significant influence * Since April 3, 2020, Huya ceased to be a subsidiary of the Group and the Group accounted for the investment in Huya using the equity method. |
Schedule of significant related party transactions | During the years ended December 31, 2019, 2020 and 2021, significant related party transactions are as follows: For the year ended December 31, 2019 2020 2021 US$ US$ US$ Disposal of investments to related parties — 20,271 — Bandwidth service provided by Guangzhou Sunhongs 13,434 14,229 3,287 Promotion expense charged from related parties 3,706 2,533 3,149 Bandwidth service provided by Kingsoft Cloud 1,727 2,126 448 Loan to related parties 24,675 723 34,035 Purchase of fixed assets from Kingsoft Cloud 2,435 427 — Payments on behalf of related parties, net of repayments (1,780) 335 55,301 Online games revenue shared from related parties 521 — — Repayment of loans from related parties — — 156 Others 2,014 850 2,396 |
Schedule of the amounts due from/to related parties | December 31, 2020 2021 US$ US$ Amounts due from related parties, current Amounts due from Shopline Group — 56,316 Others 611 668 Total 611 56,984 Amounts due to related parties Due to Huya 56 4,363 Due to Xiaomi Group 494 1,384 Due to Guangzhou Sunhongs 1,160 128 Others 2,112 1,056 Total 3,822 6,931 *Other receivables and payables from/to related parties are unsecured and payable on demand. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair value measurements | |
Summary of liabilities measured at fair value on recurring basis | As of December 31, 2020 Level 1 Level 2 Total Assets Short-term investments (i) 124,176 364,925 489,101 Equity investment with readily determinable fair values (ii) 184,968 — 184,968 Derivative – forward exchange contracts — 54 54 309,144 364,979 674,123 Liabilities Derivatives – forward exchange contracts — (6,789) (6,789) As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Short-term investments (i) 212,795 682,697 51,051 946,543 Equity investment with readily determinable fair values (ii) 25,480 — — 25,480 238,275 682,697 51,051 972,023 (i) Short-term investments represented the investments issued by commercial banks or other financial institutions 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. (ii) Equity investments with readily determinable fair values are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. |
Schedule of changes in level 3 instruments | The following table presents the changes in Level 3 assets for the years ended December 31, 2019, 2020 and 2021: Available-for-sale debt investment — Convertible bond US$ Balance as of January 1, 2019 and December 31, 2019 — Acquisition 1,000 Balance as of December 31, 2020 1,000 Impairment (1,000) Balance as of December 31, 2021 — |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and contingencies | |
Schedule of future minimum payments under non-cancellable operating leases | As of December 31, 2021, future minimum payments under non-cancellable operating leases commitments consist of the following: Office rental US$ 2022 1,846 2023 223 2024 43 2025 and after — 2,112 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting | |
Summary information by segment | For the year ended December 31, 2021: Bigo All other Elimination (1) Total US$ US$ US$ US$ Net revenues Live streaming 2,231,366 245,424 — 2,476,790 Others 92,392 49,936 (67) 142,261 Total net revenues 2,323,758 295,360 (67) 2,619,051 Cost of revenues (2) (1,539,188) (242,029) 67 (1,781,150) Gross profit 784,570 53,331 — 837,901 Operating expenses (2) Research and development expenses (204,597) (75,184) — (279,781) Sales and marketing expenses (402,476) (65,931) — (468,407) General and administrative expenses (56,827) (164,904) — (221,731) Total operating expenses (663,900) (306,019) — (969,919) Gain on disposal of business — 4,959 — 4,959 Other income 6,929 13,447 — 20,376 Operating income (loss) 127,599 (234,282) — (106,683) Interest expense (3,460) (13,468) 2,453 (14,475) Interest income and investment income 1,316 92,370 (2,453) 91,233 Foreign currency exchange losses, net (12,444) (933) — (13,377) Loss on disposal and deemed disposal of investments — (23,762) — (23,762) Loss on fair value changes of investment — (15,435) — (15,435) (Loss) gain on extinguishment of debt and derivative (52) 5,343 — 5,291 Other non-operating expenses — (381) — (381) Income (loss) before income tax expenses 112,959 (190,548) — (77,589) Income tax expenses (9,153) (16,592) — (25,745) Income (loss) before share of loss in equity method investments, net of income taxes 103,806 (207,140) — (103,334) Share of loss in equity method investments, net of income taxes — (26,217) — (26,217) Net income (loss) from continuing operations 103,806 (233,357) — (129,551) (i) The elimination mainly consists of revenues and expenses generated from services among Bigo and all other segments, and interest income and interest expenses generated from the loan between Bigo and all other segments. (ii) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total US$ US$ US$ Cost of revenues 5,974 2,115 8,089 Research and development expenses 17,179 6,874 24,053 Sales and marketing expenses 654 631 1,285 General and administrative expenses (5,297) 5,252 (45) 33. Segment Reporting (continued) (a) For the year ended December 31, 2020: Bigo All other Elimination (1) Total US$ US$ US$ US$ Net revenues Live streaming 1,659,311 156,515 — 1,815,826 Others 73,500 28,818 — 102,318 Total net revenues 1,732,811 185,333 — 1,918,144 Cost of revenues (2) (1,207,124) (171,022) — (1,378,146) Gross profit 525,687 14,311 — 539,998 Operating expenses (2) Research and development expenses (194,122) (108,696) — (302,818) Sales and marketing expenses (446,521) (58,868) — (505,389) General and administrative expenses (85,685) (60,981) — (146,666) Total operating expenses (726,328) (228,545) — (954,873) Other income 3,550 4,545 — 8,095 Operating loss (197,091) (209,689) — (406,780) Interest expense (7,892) (72,474) 4,811 (75,555) Interest income and investment income 155 93,734 (4,811) 89,078 Foreign currency exchange losses, net (17,035) (437) — (17,472) Gain on disposal and deemed disposal of investments — 272,281 — 272,281 Gain on fair value changes of investment — 160,849 — 160,849 Fair value change on derivatives (281) (5,996) — (6,277) Other non-operating expenses (889) (1,578) — (2,467) (Loss) income before income tax expenses (223,033) 236,690 — 13,657 Income tax benefits (expense) 9,425 (37,250) — (27,825) (Loss) income before share of loss in equity method investments, net of income taxes (213,608) 199,440 — (14,168) Share of loss in equity method investments, net of income taxes — (7,634) — (7,634) Net (loss) income from continuing operations (213,608) 191,806 — (21,802) (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: 33. Segment Reporting (continued) (a) Bigo All other Total US$ US$ US$ Cost of revenues 4,094 1,703 5,797 Research and development expenses 33,795 8,851 42,646 Sales and marketing expenses 706 605 1,311 General and administrative expense 33,668 8,738 42,406 33. Segment Reporting (continued) (a) The following table presents summary information by segment (continued): For the year ended December 31, 2019: Bigo All other Elimination (1) Total US$ US$ US$ US$ Net revenues Live streaming 657,788 111,360 — 769,148 Others 58,541 73,013 — 131,554 Total net revenues 716,329 184,373 — 900,702 Cost of revenues (2) (505,643) (151,277) — (656,920) Gross profit 210,686 33,096 — 243,782 Operating expenses (2) Research and development expenses (141,553) (94,951) — (236,504) Sales and marketing expenses (297,713) (106,782) — (404,495) General and administrative expenses (47,800) (87,764) — (135,564) Total operating expenses (487,066) (289,497) — (776,563) Gain on disposal of business — 11,754 — 11,754 Other income 1,390 4,284 — 5,674 Operating loss (274,990) (240,363) — (515,353) Interest expense (4,584) (37,970) 4,440 (38,114) Interest income and investment income 389 65,798 (4,440) 61,747 Foreign currency exchange gain (losses), net 1,967 (672) — 1,295 Gain on fair value changes of investment — 397,960 — 397,960 Fair value change on derivatives — (2,277) — (2,277) (Loss) income before income tax expenses (277,218) 182,476 — (94,742) Income tax benefits 19,605 493 — 20,098 (Loss) income before share of income in equity method investments, net of income taxes (257,613) 182,969 — (74,644) Share of income in equity method investments, net of income taxes — 5,974 — 5,974 Net (loss) income from continuing operations (257,613) 188,943 — (68,670) 33. Segment Reporting (continued) (a) The following table presents summary information by segment (continued): (1) The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments. (2) Share-based compensation was allocated in cost of revenues and operating expenses as follows: Bigo All other Total US$ US$ US$ Cost of revenues 4,084 1,848 5,932 Research and development expenses 43,625 8,986 52,611 Sales and marketing expenses 617 107 724 General and administrative expense 4,720 12,369 17,089 |
Summary of revenues and property and equipment for of the Company's geographic operations | For the years ended December 31, 2019 2020 2021 US$ US$ US$ Revenues: PRC 297,469 362,963 481,770 Developed countries 207,016 612,679 872,974 Middle East 182,630 475,662 621,775 Southeast Asia and others 213,587 466,840 642,532 As of December 31, 2020 2021 US$ US$ Property and equipment, net: PRC 246,325 282,955 Singapore 134,170 50,289 Other countries 21,166 32,148 |
Organization and principal ac_3
Organization and principal activities - Principal Subsidiaries and VIEs to conduct its business operations (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Duowan BVI | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Beijing Huanju Shidai [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Guangzhou Huanju Shidai | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Hago Singapore [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Bigo [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Bigo Singapore [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Bigo HK [Member] | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
BaiGuoYuan Technology | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Guangzhou Huaduo | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Guangzhou BaiGuoYuan | |
Ownership of principal subsidiaries and principal VIEs | |
% of direct or indirect economic ownership | 100.00% |
Organization and principal ac_4
Organization and principal activities - Additional Information (Details) - USD ($) $ in Thousands | Aug. 10, 2020 | Apr. 03, 2020 | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2021 | Nov. 16, 2020 |
Organization and principal activities [Line Items] | ||||||
Cash paid for acquisition | $ 343,100 | |||||
Registered capital and PRC statutory reserves of the VIEs and VIE's subsidiaries | $ 1,088,061 | |||||
YY Live | Held for sale | ||||||
Organization and principal activities [Line Items] | ||||||
Total consideration related to disposal of YY Live | $ 3,600,000 | |||||
Disposal Group, Including Discontinued Operation, Consideration Subject to Conditions | $ 300,000 | |||||
BIGOINC | ||||||
Organization and principal activities [Line Items] | ||||||
Cash paid for acquisition | $ 343,100 | |||||
BIGOINC | Bigo [Member] | Class A common shares | ||||||
Organization and principal activities [Line Items] | ||||||
Number of shares issued for acquisition | 305,127,046 | |||||
BIGOINC | Bigo [Member] | Class B common shares | ||||||
Organization and principal activities [Line Items] | ||||||
Number of shares issued for acquisition | 38,326,579 | |||||
Guangzhou Huya IT [Member] | Exclusive Business Cooperation Agreement [Member] | ||||||
Organization and principal activities [Line Items] | ||||||
Period of prior written notice required to terminate the agreement | 30 days | |||||
Term of agreement | 10 years | |||||
Term of agreement extension | 10 years | |||||
Guangzhou Huya IT [Member] | Exclusive Option Agreement [Member] | ||||||
Organization and principal activities [Line Items] | ||||||
Period of prior written notice required to terminate the agreement | 30 days | |||||
Term of agreement | 10 years | |||||
Term of agreement extension | 10 years | |||||
Guangzhou Huya IT [Member] | Power of Attorney [Member] | ||||||
Organization and principal activities [Line Items] | ||||||
Period of prior written notice required to terminate the agreement | 30 days | |||||
Term of agreement | 10 years | |||||
Term of agreement extension | 1 year | |||||
Guangzhou Huaduo | 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 | |||||
Guangzhou Huaduo | Exclusive Option Agreement [Member] | ||||||
Organization and principal activities [Line Items] | ||||||
Term of agreement | 10 years | |||||
Huya Inc | Linen Investment Limited | ||||||
Organization and principal activities [Line Items] | ||||||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal | 17.50% | 31.20% | ||||
Discontinued Operation Equity Method Investment Retained After Disposal Voting Power After Disposal | 24.10% | 43.00% | ||||
Huya Inc | Class B common shares | Linen Investment Limited | ||||||
Organization and principal activities [Line Items] | ||||||
Discontinued Operation Equity Method Investment Sold | 30,000,000 | 16,523,819 | ||||
Total consideration related to disposal of YY Live | $ 810,000 | $ 262,600 | ||||
Discontinued Operation Equity Method Investment Retained After Disposal Share After Disposal | 38,374,463 | 68,374,463 |
Principal accounting policies_3
Principal accounting policies (Convenience Translation - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2021 | Jan. 01, 2020 | Dec. 31, 2018 | |
Cash and cash equivalents | ||||||
cash, , cash equivalents, restricted cash and restricted short-term deposits | $ 2,134,492 | $ 1,787,971 | $ 482,663 | |||
Cash and cash equivalents | 1,837,185 | 1,742,749 | ||||
Restricted cash | 297,022 | 13,733 | ||||
Restricted short-term deposits | 285 | 31,489 | ||||
Impairment of long-lived assets | ||||||
Impairment charges of intangible assets | 0 | 0 | 1,195 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,562,465 | 6,240,907 | $ 5,506,976 | $ 3,114,747 | ||
Retained earnings | 2,712,534 | $ 2,881,782 | ||||
Adjustment | ||||||
Impairment of long-lived assets | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,700 | |||||
Retained earnings | $ 86,700 | |||||
Adjustment | Adoption of ASU 2020-06 | ||||||
Impairment of long-lived assets | ||||||
Retained earnings | $ 86,700 | |||||
Adjustment | Adoption of ASC326 | ||||||
Impairment of long-lived assets | ||||||
Retained earnings | $ 1,700 | |||||
Contract Balance [Member] | ||||||
Impairment of long-lived assets | ||||||
Revenue, Remaining Performance Obligation, Amount | 67,332 | |||||
Revenue Remaining Performance Obligation Expected to be Recognized | $ 60,910 |
Principal accounting policies_4
Principal accounting policies (Schedule of Property and Equipment Estimated Useful Lives and Residual Rate) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings [Member] | |
Property and equipment [Line Items] | |
Estimated useful lives | 40 years |
Residual rate (as a percent) | 0.00% |
Servers, computers and equipment [Member] | Minimum | |
Property and equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual rate (as a percent) | 0.00% |
Servers, computers and equipment [Member] | Maximum | |
Property and equipment [Line Items] | |
Estimated useful lives | 5 years |
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 |
Renovation 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 |
Motor vehicles [Member] | Minimum | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 0.00% |
Motor vehicles [Member] | Maximum | |
Property and equipment [Line Items] | |
Residual rate (as a percent) | 5.00% |
Furniture, fixture and office equipment [Member] | Minimum | |
Property and equipment [Line Items] | |
Estimated useful lives | 3 years |
Residual rate (as a percent) | 0.00% |
Furniture, fixture and office equipment [Member] | Maximum | |
Property and equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate (as a percent) | 5.00% |
Principal accounting policies_5
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, 2021 | |
Trademark | Minimum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 6 years |
Trademark | Maximum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 10 years |
Customer relationships | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 3 years |
Licenses | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 15 years |
Non-compete agreement | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 1 year |
Operating rights [Member] | |
Intangible assets, net [Line Items] | |
Estimated useful lives | Shorter of the economic life or contract terms |
Software | Minimum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 1 year |
Software | Maximum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 5 years |
Domain names | Minimum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 10 years |
Domain names | Maximum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 15 years |
Patented Technology [Member] | Minimum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 5 years |
Patented Technology [Member] | Maximum | |
Intangible assets, net [Line Items] | |
Estimated useful lives | 6 years |
Others | |
Intangible assets, net [Line Items] | |
Estimated useful lives | Shorter of the economic life or contract terms |
Land Use Rights [Member] | |
Intangible assets, net [Line Items] | |
Term Of Amortization | 40 years |
Principal accounting policies_6
Principal accounting policies (Revenue Recognition and Cost of Revenues - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
First variation of VAT and related surcharges (as a percent) | 6.00% | |||
Second variation of VAT and related surcharges (as a percent) | 9.00% | |||
Third variation of VAT and related surcharges (as a percent) | 13.00% | |||
Surcharges on business taxes and VAT (as a percent) | 12.00% | 12.00% | 12.00% | |
Accounts Receivable, Net, Current | $ 114,372 | $ 142,999 | $ 95,803 | |
Addition of allowance for accounts receivable recognized | $ 5,039 | 6,726 | $ 13 | |
Advertising revenues [Member] | Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Period over which payments are due | 3 months | |||
Live streaming | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 64,356 | 65,979 | 25,021 | |
Revenue recognized | 63,450 | 23,203 | ||
Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 5,106 | |||
Revenue recognized | 3,780 | 4,427 | ||
Deferred revenue | $ 2,976 | $ 4,383 |
Principal accounting policies_7
Principal accounting policies (Sales and Marketing Expenses, Share based Compensation, Statutory Reserves, Dividends and Segment Reporting - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory reserves [Line Item] | |||
Advertising and market promotion expenses | $ 383,603 | $ 388,504 | $ 310,496 |
Employee social security and welfare benefits | $ 67,733 | 50,621 | 42,853 |
Minimum percentage appropriation to statutory surplus fund required | 10.00% | ||
Surplus fund threshold for mandatory appropriation requirement (as a percent) | 50.00% | ||
Amount appropriated to statutory reserves | $ 0 | 0 | 0 |
Statutory reserves | |||
Statutory reserves [Line Item] | |||
Amount appropriated to statutory reserves | $ 8,979 | $ 4,445 | $ 6,856 |
VIEs registered as PRC domestic companies | |||
Statutory reserves [Line Item] | |||
Minimum percentage appropriation to statutory surplus fund required | 10.00% | ||
Surplus fund threshold for mandatory appropriation requirement (as a percent) | 50.00% |
Principal accounting policies_8
Principal accounting policies (Leases - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2019 | |
Principal accounting policies | |||
Right of use assets | $ 16,565 | $ 21,579 | $ 21,200 |
Lease liability | $ 16,775 | 20,600 | |
Weighted average remaining lease terms of the right-of-use assets | 1 year 2 months 4 days | ||
Weighted average incremental borrowing rate | 5.15% | ||
Operating lease cost | $ 6,309 | 17,249 | |
Short-term lease cost | 5,651 | 2,826 | |
Cash paid for operating leases included in operating cash flows | 6,588 | 16,599 | |
Lease liabilities arising from obtaining right-of-use assets | 4,531 | $ 12,529 | |
Undiscounted cash flows to the operating lease liabilities recognized | |||
2022 | 12,038 | ||
2023 | 4,368 | ||
2024 | 869 | ||
2025 and after | 491 | ||
Total undiscounted cash flows | 17,766 | ||
Less: imputed interest | (991) | ||
Present value of lease liabilities | $ 16,775 | $ 20,600 |
Principal accounting policies_9
Principal accounting policies (Narrative) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Asset Pledged as Collateral with Right [Member] | |
Value of land use right pledged for loans from bank | $ 256.1 |
Other Noncurrent Liabilities [Member] | |
Amount of loans borrowed from banks | $ 7.4 |
Discontinued operations - Dispo
Discontinued operations - Disposal of YV Live business and Huya assets, liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 16, 2020 |
Current assets | |||
Total current assets | $ 0 | $ 52,528 | |
Non-current assets | |||
Total non-current assets | 0 | 25,500 | |
Current liabilities | |||
Total current liabilities | 0 | 179,109 | |
Non-current liabilities | |||
Total non-current liabilities | 4,415 | ||
Net assets subject to disposal related to YY Live (Note 3(a)) | 38,194 | 0 | |
Consideration received related to disposal of YY Live | 1,862,750 | ||
Held for sale | YY Live | |||
Current assets | |||
Cash and cash equivalents | 201,393 | 31,600 | |
Accounts receivable, net | 18,239 | 15,481 | |
Prepayments and other current assets | 4,986 | 5,447 | |
Total current assets | 224,618 | 52,528 | |
Non-current assets | |||
Deferred tax assets | 4,294 | 5,238 | |
Property and equipment, net | 10,356 | 9,180 | |
Intangible assets, net | 7,456 | 7,363 | |
Other non-current assets | 3,814 | 3,719 | |
Total non-current assets | 25,920 | 25,500 | |
Total assets | 250,538 | 78,028 | |
Current liabilities | |||
Accounts payable | 1,117 | ||
Deferred revenue | 49,495 | 50,070 | |
Advances from customers | 12,663 | 12,377 | |
Income taxes payable | 9,787 | 3,221 | |
Accrued liabilities and other current liabilities | 139,282 | 113,441 | |
Total current liabilities | 212,344 | 179,109 | |
Non-current liabilities | |||
Deferred revenue | 4,415 | ||
Total non-current liabilities | 4,415 | ||
Total liabilities | 212,344 | $ 183,524 | |
Net assets subject to disposal related to YY Live (Note 3(a)) | $ 38,194 | ||
Total consideration related to disposal of YY Live | $ 3,600,000 | ||
Consideration received related to disposal of YY Live | $ 1,900,000 |
Discontinued operations - Dis_2
Discontinued operations - Disposal of YV Live business and Huya operations and cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses | |||
Net (loss) income | $ 35,567 | $ 1,401,670 | $ 615,268 |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | |||
Net cash provided by discontinuing operating activities | 64,289 | 497,863 | 843,713 |
Net cash (used in) provided by discontinued investing activities | 1,636,450 | 92,371 | (562,834) |
Net cash provided by discontinued financing activities | 0 | 1,232 | 308,219 |
YY Live | |||
Operating expenses | |||
Net (loss) income | 35,567 | 482,487 | 547,612 |
Huya | |||
Operating expenses | |||
Net (loss) income | 919,183 | 67,656 | |
Held for sale | YY Live | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Total net revenues | 154,425 | 1,440,575 | 1,589,866 |
Cost of revenues | (88,900) | (773,988) | (827,266) |
Gross profit | 65,525 | 666,587 | 762,600 |
Operating expenses | |||
Research and development expenses | (6,323) | (52,519) | (56,874) |
Sales and marketing expenses | (8,954) | (84,303) | (73,487) |
General and administrative expenses | (7,108) | (22,116) | (28,779) |
Total operating expenses | (22,385) | (158,938) | (159,140) |
Other income | 611 | 23,935 | 29,414 |
Operating income | 43,751 | 531,584 | 632,874 |
Interest income and investment income | 355 | 419 | 355 |
Income before income tax expenses | 44,106 | 532,003 | 633,229 |
Income tax expenses | (8,539) | (49,516) | (85,617) |
Net (loss) income | 35,567 | 482,487 | 547,612 |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | |||
Net cash provided by discontinuing operating activities | 64,289 | 478,357 | 559,878 |
Net cash (used in) provided by discontinued investing activities | 1,636,450 | 6,819 | (27,981) |
Held for sale | YY Live | Live streaming | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Total net revenues | 151,445 | 1,399,212 | 1,554,947 |
Held for sale | YY Live | Others [Member] | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Total net revenues | $ 2,980 | 41,363 | 34,919 |
Held for sale | Huya | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Total net revenues | 345,801 | 1,212,700 | |
Cost of revenues | (277,954) | (998,289) | |
Gross profit | 67,847 | 214,411 | |
Operating expenses | |||
Research and development expenses | (22,477) | (73,527) | |
Sales and marketing expenses | (15,279) | (63,510) | |
General and administrative expenses | (20,743) | (51,156) | |
Total operating expenses | (58,499) | (188,193) | |
Other income | 1,624 | 11,500 | |
Operating income | 10,972 | 37,718 | |
Interest income and investment income | 12,293 | 44,076 | |
Foreign currency exchange gains (losses), net | (205) | 166 | |
Gain on fair value changes of investments | 310 | ||
Other non-operating expenses | (1,435) | ||
Income before income tax expenses | 21,935 | 81,960 | |
Income tax expenses | (5,384) | (13,910) | |
Net (loss) income | 16,551 | 68,050 | |
Share of income in equity method investments, net of income taxes | (145) | (394) | |
Gain on disposal, net of tax | 902,777 | ||
Net (loss) income | 919,183 | 67,656 | |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | |||
Net cash provided by discontinuing operating activities | 19,506 | 283,835 | |
Net cash (used in) provided by discontinued investing activities | 85,552 | (534,853) | |
Net cash provided by discontinued financing activities | 1,232 | 308,219 | |
Held for sale | Huya | Live streaming | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Total net revenues | 326,094 | 1,155,066 | |
Held for sale | Huya | Others [Member] | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Total net revenues | $ 19,707 | $ 57,634 |
Discontinued operations - Dis_3
Discontinued operations - Disposal of YV Live business and Huya Share-based compensation (Details) - Held for sale - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
YY Live | Cost of revenues [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost of revenues | $ (426) | $ 1,645 | $ 1,256 |
YY Live | Research and development expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Research and development expenses | (703) | 6,656 | 8,271 |
YY Live | Sales and marketing expenses [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales and marketing expenses | (39) | 189 | 261 |
YY Live | General and administrative expenses [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
General and administrative expenses | $ (175) | 4,928 | 10,593 |
Huya | Cost of revenues [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cost of revenues | 2,354 | 4,545 | |
Huya | Research and development expenses | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Research and development expenses | 5,309 | 12,433 | |
Huya | Sales and marketing expenses [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales and marketing expenses | 375 | 852 | |
Huya | General and administrative expenses [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
General and administrative expenses | $ 13,558 | $ 22,969 |
Discontinued operations - Recon
Discontinued operations - Reconciliation of income from discontinued operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net (loss) income from discontinued operations | $ 35,567 | $ 1,401,670 | $ 615,268 |
YY Live | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net (loss) income from discontinued operations | $ 35,567 | 482,487 | 547,612 |
Huya | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net (loss) income from discontinued operations | $ 919,183 | $ 67,656 |
Discontinued operations (Narrat
Discontinued operations (Narrative) (Details) - Huya - USD ($) $ in Thousands | Apr. 03, 2020 | Apr. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of equity interest discontinued operation disposal group held | 31.20% | 38.70% | |||
Percentage of voting discontinued operation disposal group held | 43.00% | 53.00% | |||
Held for sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax income from the date of disposal | $ 21,935 | $ 81,960 | |||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax income from the date of disposal | $ 39,429 | 119,428 | |||
Share of income (loss) in equity method investments, net of income taxes | $ 7,855 | $ 2,431 |
Certain risks and concentrati_3
Certain risks and concentration (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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% | ||
Inter segment elimination | |||
Certain risks and concentration [Line Items] | |||
Revenues from sales of software | $ 0 | $ 24,523 | $ 0 |
Cost of revenues and operating expenses for purchase of software | 80,402 | 41,832 | 54,044 |
Cost of revenues and operating expenses for technical support services | $ 35,899 | 447,271 | 77,682 |
Minimum | |||
Certain risks and concentration [Line Items] | |||
Term of contractual agreements | 10 years | ||
Maximum | |||
Certain risks and concentration [Line Items] | |||
Term of contractual agreements | 30 years | ||
Guangzhou Huaduo | |||
Certain risks and concentration [Line Items] | |||
Equity interests ownership (as a percent) | 100.00% | ||
Beijing Tuda and Guangzhou Huaduo [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% | ||
Guangzhou BaiGuoYuan | |||
Certain risks and concentration [Line Items] | |||
Equity interests ownership (as a percent) | 100.00% | ||
Variable interest entity | |||
Certain risks and concentration [Line Items] | |||
Unsettled balance of Service fees payable | $ 66,811 | 121,376 | |
Group companies | Inter segment elimination | |||
Certain risks and concentration [Line Items] | |||
Cash paid for settlement of software transactions | 62,499 | 53,696 | 43,829 |
Cash paid for settlement of technical support fees | 52,119 | 369,897 | 57,474 |
Revenues earned from Group companies | $ 129,440 | $ 25,039 | $ 26,297 |
Certain risks and concentrati_4
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) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | ||
Current assets | ||||||
Cash and cash equivalents | $ 1,837,185 | $ 1,742,749 | ||||
Restricted cash and cash equivalents | 297,022 | 13,733 | ||||
Short-term deposits | 1,604,198 | 1,325,068 | ||||
Restricted short-term deposits | 285 | 31,489 | ||||
Short-term investments | 946,543 | 489,101 | ||||
Accounts receivable, net | 114,372 | 142,999 | $ 95,803 | |||
Amounts due from related parties | 56,984 | 611 | ||||
Financing receivables, net | 0 | 172 | ||||
Prepayments and other current assets | 213,733 | 102,872 | ||||
Assets held for sale | 0 | 52,528 | ||||
Total current assets | 5,070,322 | 3,901,322 | ||||
Non-current assets | ||||||
Deferred tax assets | 0 | |||||
Investments | 1,022,455 | 1,239,354 | ||||
Property and equipment, net | 365,392 | 401,661 | ||||
Land use rights, net | 370,052 | 258,770 | ||||
Intangible assets, net | 312,082 | 344,214 | ||||
Right-of-use assets, net | 16,565 | 21,579 | $ 21,200 | |||
Other non-current assets | 4,881 | 10,758 | ||||
Assets held for sale | 0 | 25,500 | ||||
Total non-current assets | 4,049,690 | 4,193,635 | ||||
Total assets | 9,120,012 | 8,094,957 | ||||
Current liabilities | ||||||
Accounts payable | 18,011 | 20,956 | ||||
Deferred revenue | 60,910 | 67,230 | ||||
Advances from customers | 3,426 | 775 | ||||
Income taxes payable | 65,738 | 60,895 | ||||
Accrued liabilities and other current liabilities | 2,345,838 | 484,450 | ||||
Amounts due to related parties | 6,931 | 3,822 | ||||
Lease liabilities due within one year | 11,041 | 14,332 | ||||
Short-term loans | 0 | 112,549 | ||||
Liabilities held for sale | 0 | 179,109 | ||||
Total current liabilities | 2,511,895 | 944,118 | ||||
Non-current liabilities | ||||||
Lease liabilities | 5,734 | 8,121 | ||||
Deferred revenue | 6,422 | 3,132 | ||||
Deferred tax liabilities | 36,214 | 42,422 | ||||
Other non-current liabilities | 7,372 | |||||
Liabilities held for sale | 4,415 | |||||
Total non-current liabilities | 979,819 | 837,315 | ||||
Total liabilities | 3,491,714 | 1,781,433 | ||||
Cost of sales | [1] | (1,781,150) | (1,378,146) | $ (656,920) | ||
Total operating expenses | (969,919) | (954,873) | (776,563) | |||
Other items of the consolidated statements of comprehensive income | 69,175 | 18,471 | ||||
Net loss from continuing operations | (125,096) | (28,305) | (74,344) | |||
Net cash provided by (used in) operating activities | 210,416 | 495,146 | 666,128 | |||
Net cash provided by (used in) investing activities | 789,593 | 782,541 | (2,265,689) | |||
Net cash provided by (used in) financing activities | (723,536) | (135,502) | 1,374,505 | |||
Variable interest entity | ||||||
Current assets | ||||||
Cash and cash equivalents | 433,405 | 248,300 | ||||
Restricted cash and cash equivalents | 7,364 | 536 | ||||
Short-term deposits | 308,986 | 669,742 | ||||
Restricted short-term deposits | 0 | 30,652 | ||||
Short-term investments | 288,944 | 266,647 | ||||
Accounts receivable, net | 5,880 | 25,885 | ||||
Amounts due from Group companies | 263,373 | 364,025 | ||||
Amounts due from related parties | 9,684 | 1,704 | ||||
Financing receivables, net | 0 | 50 | ||||
Prepayments and other current assets | 101,173 | 55,593 | ||||
Assets held for sale | 0 | 75,839 | ||||
Total current assets | 1,418,809 | 1,738,973 | ||||
Non-current assets | ||||||
Investments | 235,277 | 381,867 | ||||
Property and equipment, net | 171,831 | 156,494 | ||||
Land use rights, net | 370,052 | 258,770 | ||||
Intangible assets, net | 58,893 | 84,236 | ||||
Right-of-use assets, net | 4,911 | 6,461 | ||||
Other non-current assets | 1,055 | 6,151 | ||||
Assets held for sale | 0 | 19,896 | ||||
Total non-current assets | 842,019 | 913,875 | ||||
Total assets | 2,260,828 | 2,652,848 | ||||
Current liabilities | ||||||
Accounts payable | 14,200 | 16,045 | ||||
Deferred revenue | 13,873 | 17,140 | ||||
Advances from customers | 1,242 | 29 | ||||
Income taxes payable | 25,606 | 19,492 | ||||
Accrued liabilities and other current liabilities | 114,325 | 108,450 | ||||
Amounts due to Group companies | 131,887 | 151,073 | ||||
Amounts due to related parties | 1,024 | 2,274 | ||||
Lease liabilities due within one year | 3,077 | 4,702 | ||||
Short-term loans | 0 | 102,538 | ||||
Liabilities held for sale | 0 | 178,744 | ||||
Total current liabilities | 305,234 | 600,487 | ||||
Non-current liabilities | ||||||
Lease liabilities | 2,096 | 1,982 | ||||
Deferred revenue | 3,849 | 1,487 | ||||
Deferred tax liabilities | 9,105 | 10,866 | ||||
Other non-current liabilities | 7,372 | 0 | ||||
Liabilities held for sale | 0 | 4,415 | ||||
Total non-current liabilities | 22,422 | 18,750 | ||||
Total liabilities | 327,656 | 619,237 | ||||
Total operating expenses | (293,959) | (514,889) | (232,406) | |||
Other items of the consolidated statements of comprehensive income | 22,305 | 23,244 | 31,035 | |||
Net (decrease) / increase in cash and cash equivalents | 273,767 | (523,677) | (706,346) | |||
Group companies | ||||||
Non-current liabilities | ||||||
Net revenues | 109,618 | 79,609 | 29,581 | |||
Cost of sales | (60,053) | (216,696) | (80,739) | |||
Net cash provided by (used in) operating activities | 77,319 | (344,858) | (31,178) | |||
Net cash provided by (used in) investing activities | (35,559) | (104,111) | (84,393) | |||
Net cash provided by (used in) financing activities | 5,378 | 25,219 | (51,848) | |||
Third parities | ||||||
Non-current liabilities | ||||||
Net revenues | 447,471 | 396,343 | 283,044 | |||
Cost of sales | (347,674) | (298,715) | (200,860) | |||
Net loss from continuing operations | (122,292) | (531,104) | (170,345) | |||
Net cash provided by (used in) operating activities | 153,715 | (73,830) | (31,422) | |||
Net cash provided by (used in) investing activities | 170,112 | (47,787) | (546,963) | |||
Net cash provided by (used in) financing activities | $ (97,198) | $ 21,690 | $ 39,458 | |||
[1] | Share-based compensation was allocated in cost of revenues and operating expenses as follows |
Business combination - Acquisit
Business combination - Acquisition (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2019 | Jun. 30, 2021 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Cash paid for acquisition | $ 343,100 | ||
Bigo Inc | |||
Business Acquisition [Line Items] | |||
Ownership interest held | 31.70% | ||
Other acquisition | |||
Business Acquisition [Line Items] | |||
Ownership interest held | 25.00% | ||
Cash paid for acquisition | $ 9,611 | ||
Business combination, consideration transferred | $ 9,600 | ||
Percentage of shares in subsidiary transferred | 19.00% | ||
Other acquisition | Minimum | |||
Business Acquisition [Line Items] | |||
Ownership interest held | 25.00% | ||
Other acquisition | Maximum | |||
Business Acquisition [Line Items] | |||
Ownership interest held | 81.00% | ||
Class A common shares | Bigo Inc | |||
Business Acquisition [Line Items] | |||
Number of shares issued for acquisition | 305,127,046 | ||
Class A common shares | Employees | Bigo Inc | |||
Business Acquisition [Line Items] | |||
Number of shares issued for acquisition | 8,761,450 | ||
Class B common shares | Bigo Inc | |||
Business Acquisition [Line Items] | |||
Number of shares issued for acquisition | 38,326,579 |
Business combination - Summariz
Business combination - Summarizes the components of the purchase consideration (Details) - USD ($) $ in Thousands | Mar. 04, 2019 | Feb. 28, 2019 | Jun. 30, 2021 |
Components of the purchase consideration transferred | |||
Cash | $ 343,100 | ||
BIGOINC | |||
Components of the purchase consideration transferred | |||
Cash | $ 343,062 | ||
Fair value of a subsidiary's common share issued | 1,149,073 | ||
Fair value of previously held equity interest in the acquiree | 849,700 | ||
Elimination of preexisting amounts due from Bigo | 48,174 | ||
Total consideration | $ 2,390,009 | ||
Other acquisition | |||
Components of the purchase consideration transferred | |||
Cash | $ 9,611 | ||
Fair value of a subsidiary's common share issued | 53,810 | ||
Fair value of previously held equity interest in the acquiree | 27,716 | ||
Total consideration | $ 91,137 |
Business combination - Fair val
Business combination - Fair value of common shares (Details) - USD ($) $ in Thousands | Mar. 04, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Post-acquisition share-based compensation | $ 0 | $ 470 | $ 604 | |
Gain Loss On Fair Value Changes Of Investments | $ (15,435) | $ 160,849 | $ 397,960 | |
BIGOINC | ||||
Business Acquisition [Line Items] | ||||
Post-acquisition share-based compensation | $ 88,047 | |||
Amounts due from Bigo | 48,174 | |||
Gain Loss On Fair Value Changes Of Investments | 396,094 | |||
Acquisition-related costs | $ 4,036 | |||
Class A common shares | BIGOINC | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued for acquisition | 305,127,046 | |||
Number of shares for replacement awards to employees to replace their original share-based awards | 38,042,760 |
Business combination - Fair v_2
Business combination - Fair value of the assets acquired and liabilities (Details) - USD ($) $ in Thousands | Mar. 04, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Net tangible assets acquired: | ||||
Goodwill | $ 1,958,263 | $ 1,872,083 | $ 1,855,909 | |
BIGOINC | ||||
Net tangible assets acquired: | ||||
-Cash and cash equivalents, restricted cash and cash equivalents and restricted short-term deposits | $ 95,965 | |||
-Accounts receivables | 57,647 | |||
-Other current assets | 7,820 | |||
-Property and equipment, net | 43,853 | |||
-Other non-current assets | 26,076 | |||
Accrued liabilities and other liabilities | (172,539) | |||
Deferred tax liabilities | (47,258) | |||
Goodwill | 1,854,221 | |||
Total | 2,390,009 | |||
Other acquisition | ||||
Net tangible assets acquired: | ||||
-Cash and cash equivalents, restricted cash and cash equivalents and restricted short-term deposits | 7,296 | |||
-Accounts receivables | 1,376 | |||
-Other current assets | 1,987 | |||
-Property and equipment, net | 142 | |||
Accounts payable | (2,268) | |||
Accrued liabilities and other liabilities | (1,579) | |||
Deferred tax liabilities | (4,069) | |||
Goodwill | 84,925 | |||
Non-controlling interests | (21,332) | |||
Total | 91,137 | |||
Technology | Other acquisition | ||||
Net tangible assets acquired: | ||||
Identifiable intangible assets acquired | $ 11,917 | |||
Amortization period | 6 years | |||
Trademark | BIGOINC | ||||
Net tangible assets acquired: | ||||
Identifiable intangible assets acquired | $ 358,000 | |||
Amortization period | 10 years | |||
Trademark | Other acquisition | ||||
Net tangible assets acquired: | ||||
Identifiable intangible assets acquired | $ 11,839 | |||
Amortization period | 6 years | |||
Customer relationships | BIGOINC | ||||
Net tangible assets acquired: | ||||
Identifiable intangible assets acquired | $ 153,200 | |||
Amortization period | 3 years | |||
Customer relationships | Other acquisition | ||||
Net tangible assets acquired: | ||||
Identifiable intangible assets acquired | $ 903 | |||
Amortization period | 3 years | |||
Non-compete agreement | BIGOINC | ||||
Net tangible assets acquired: | ||||
Identifiable intangible assets acquired | $ 12,100 | |||
Amortization period | 1 year | |||
Others | BIGOINC | ||||
Net tangible assets acquired: | ||||
Identifiable intangible assets acquired | $ 924 |
Business combination - Pro form
Business combination - Pro forma information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Pro forma information of the acquisition | |
Pro forma net revenues | $ 998,828 |
Pro forma net loss | $ (498,127) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) |
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,837,185 | $ 1,742,749 | ||
Restricted cash and cash equivalent | 297,022 | 13,733 | ||
Other | ||||
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | 74,022 | 23,815 | ||
US$ | ||||
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | 1,220,064 | 1,306,404 | ||
RMB | ||||
Cash and cash equivalents [Line Items] | ||||
Cash and cash equivalents | $ 543,099 | ¥ 3,462,640 | $ 412,530 | ¥ 2,691,718 |
Short-term deposits (Details)
Short-term deposits (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) |
Short Term And Long Term Deposits [Line Items] | ||||
Short-term deposits | $ 1,604,198 | $ 1,325,068 | ||
RMB | ||||
Short Term And Long Term Deposits [Line Items] | ||||
Short-term deposits | 340,355 | ¥ 2,170,000 | 685,068 | ¥ 4,470,002 |
US$ | ||||
Short Term And Long Term Deposits [Line Items] | ||||
Short-term deposits | $ 1,263,843 | $ 640,000 |
Restricted short-term deposits
Restricted short-term deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash And Investments [Line Items] | ||
Restricted Of Short Term Deposit | $ 285 | $ 31,489 |
Loans Payable | ||
Restricted Cash And Investments [Line Items] | ||
Line of credit facility, Maximum Borrowing Capacity | $ 31,000 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Accounts Receivable Net [Line Items] | ||||
Accounts receivable, gross | $ 126,798 | $ 150,386 | ||
Less: allowance for expected credit loss of receivables | (12,426) | (7,387) | $ (9) | |
Accounts receivable, net | 114,372 | 142,999 | $ 95,803 | |
Summary of allowance for doubtful accounts | ||||
Balance at the beginning of the year | (7,387) | (9) | (1,081) | |
Additions charged to general and administrative expenses, net | (5,039) | (6,726) | (13) | |
Write-off during the year | 0 | 1,085 | ||
Balance at the end of the year | (12,426) | (7,387) | (9) | |
Adoption of ASC326 | ||||
Accounts Receivable Net [Line Items] | ||||
Less: allowance for expected credit loss of receivables | (652) | 0 | ||
Summary of allowance for doubtful accounts | ||||
Balance at the beginning of the year | $ (652) | 0 | ||
Balance at the end of the year | $ (652) | $ 0 |
Financing receivables, net (Sch
Financing receivables, net (Schedule Of Accounts Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing receivables, gross | $ 20,317 | $ 50,002 | |
Allowance for expected credit loss on financing receivables | (20,317) | (30,114) | $ (26,772) |
Financing receivables, net | 19,888 | ||
Current portion | 0 | 172 | |
Non-current portion | 0 | 19,716 | |
Micro-credit personal loans | |||
Financing receivables, gross | $ 20,317 | 19,971 | |
Corporate loans | |||
Financing receivables, gross | $ 30,031 |
Financing receivables, net (S_2
Financing receivables, net (Schedule of Aging of Financing Receivables) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total financing receivables | $ 20,317 | $ 50,002 |
Financing Receivables 91 To 180 Days Past Due [Member] | ||
Total financing receivables | 4 | |
Financing Receivables 181 To 360 Days Past Due [Member] | ||
Total financing receivables | 3,185 | |
Financing Receivables Over 1 Year Past Due [Member] | ||
Total financing receivables | 46,690 | |
Financial Asset, Not Past Due [Member] | ||
Total financing receivables | 123 | |
Financial Asset, Past Due [Member] | ||
Total financing receivables | 49,879 | |
Micro-credit personal loans | ||
Total financing receivables | 20,317 | 19,971 |
Micro-credit personal loans | Financing Receivables 91 To 180 Days Past Due [Member] | ||
Total financing receivables | 4 | |
Micro-credit personal loans | Financing Receivables 181 To 360 Days Past Due [Member] | ||
Total financing receivables | 3,185 | |
Micro-credit personal loans | Financing Receivables Over 1 Year Past Due [Member] | ||
Total financing receivables | 20,317 | 16,782 |
Micro-credit personal loans | Financial Asset, Past Due [Member] | ||
Total financing receivables | $ 20,317 | 19,971 |
Corporate loans | ||
Total financing receivables | 30,031 | |
Corporate loans | Financing Receivables Over 1 Year Past Due [Member] | ||
Total financing receivables | 29,908 | |
Corporate loans | Financial Asset, Not Past Due [Member] | ||
Total financing receivables | 123 | |
Corporate loans | Financial Asset, Past Due [Member] | ||
Total financing receivables | $ 29,908 |
Financing receivables, net (All
Financing receivables, net (Allowance For Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at the beginning of the year | $ (30,114) | $ (26,772) |
Charge to general and administrative expenses for the year | (633) | (2,618) |
Reclassification to prepayments and other current assets | 10,430 | |
Balance at the end of the year | (20,317) | (30,114) |
Adoption of ASC326 | Adjustment | ||
Balance at the beginning of the year | (724) | |
Balance at the end of the year | $ 0 | $ (724) |
Financing receivables, net - (N
Financing receivables, net - (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment of investments | $ 93,632 | $ 6,186 | $ 8,870 |
Impairment Charges in General and Administrative Expenses | (70) | 676 | 24,811 |
Allowance for expected credit loss | 0 | 0 | |
Financing receivables, gross | 20,317 | 50,002 | |
Allowance for expected credit loss on financing receivables | 20,317 | 30,114 | 26,772 |
Total financing receivables | 19,888 | ||
Micro-credit personal loans | |||
Financing Receivables, Non-accrual Status | 20,317 | $ 19,971 | |
Corporate loans | |||
Sale-and-leaseback arrangements under corporate loans , the principal amount due in January 2019 and the lessee unable to repay | 2,416 | ||
Impairment of investments | $ 10,430 | ||
Financing receivables, gross | 30,607 | ||
Allowance for expected credit loss on financing receivables | 10,430 | ||
Total financing receivables | $ 20,177 |
Prepayments and other current_3
Prepayments and other current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepayments and other current assets | ||
Interests receivable | $ 22,082 | $ 36,004 |
Value added taxes to be deducted | 28,090 | 19,326 |
Receivables from payment platforms | 24,512 | 13,633 |
Employee advances | 4,073 | 3,692 |
Prepayments and deposits to vendors and content providers | 6,126 | 6,547 |
Deposits | 5,831 | 5,611 |
Loans to third parties | 7,604 | 99 |
Amount due from a lessee of sale-and-leaseback arrangement - net (Note 10) | 20,177 | 0 |
Net assets subject to disposal related to YY Live (Note 3(a)) | 38,194 | 0 |
Others | 57,044 | 17,960 |
Total | $ 213,733 | $ 102,872 |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments | |||
Equity investments accounted for using the equity method (i) | $ 850,557 | $ 832,143 | |
Equity investments with readily determinable fair values (ii) | 25,480 | 184,968 | |
Equity investments without readily determinable fair values (iii) | 146,418 | 221,243 | |
Available-for-sale debt investment | 0 | 1,000 | $ 0 |
Total | $ 1,022,455 | $ 1,239,354 |
Investments (Schedule of equity
Investments (Schedule of equity method investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Currents assets | $ 5,070,322 | $ 3,901,322 | |
Non-current assets | 4,049,690 | 4,193,635 | |
Current liabilities | 2,511,895 | 944,118 | |
Non-current liabilities | 979,819 | 837,315 | |
Non-controlling interests | 34,137 | 5,497 | |
Gross Profit | 837,901 | 539,998 | $ 243,782 |
Net income (loss) | (93,984) | 1,379,868 | 546,598 |
Net income (loss) attributable to the investees | (89,529) | 1,363,333 | 500,248 |
Equity Method Investments [Member] | |||
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Currents assets | 2,223,447 | 1,948,075 | |
Non-current assets | 552,085 | 302,915 | |
Current liabilities | 601,688 | 447,148 | |
Non-current liabilities | 39,719 | 42,817 | |
Revenues | 2,082,821 | 1,405,623 | 110,099 |
Gross Profit | 466,970 | 386,810 | 91,040 |
Net income (loss) | (81,953) | 23,563 | 31,970 |
Net income (loss) attributable to the investees | $ (81,953) | $ 23,563 | $ 31,972 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consideration to acquire minority stake | $ 94,545 | |||
Equity investments without readily determinable fair values | $ 146,418 | 221,243 | ||
Available-for-sale debt investment | 0 | 1,000 | $ 0 | |
Impairment of investments | 93,632 | 6,186 | 8,870 | |
Equity Securities ,FV-NI, Realized Gain(Loss) | 12,706 | 955 | 397,589 | |
Equity Securities, FV-NI, Gain or loss | 14,045 | 14,543 | 394,919 | |
Unrealized Gain (Loss) on Investments | 1,339 | 15,498 | $ 2,670 | |
Investees [Member] | ||||
Ownership interest held | 20.00% | |||
Ownership interest acquired | 20.00% | |||
BIGOINC | ||||
Ownership interest held | 31.70% | |||
Ownership interest acquired | 68.30% | |||
Ownership interest acquired | 31.70% | |||
Equity Method Investments [Member] | ||||
Consideration to acquire minority stake | 38,806 | |||
Equity Method Investments Original Cost | 56,336 | 87,212 | ||
Net gain from the disposal and deem disposal | 5,450 | 258,564 | ||
Equity investments without readily determinable fair values | 51,775 | 142,526 | ||
Gain on equity securities with readily determinable fair value | 115,137 | |||
Cash consideration for disposal of investment with readily determinable fair values | 128,263 | 2,406 | ||
Equity Securities, FV-NI, Gain or loss | 32,773 | 144,634 | $ 3,060 | |
Consideration from disposal of equity investments without readily determinable fair value | $ 29,050 | $ 20,000 |
Property and equipment, net (Sc
Property and equipment, net (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property and equipment, net [Line Items] | ||
Gross carrying amount | $ 610,282 | $ 560,829 |
Less: accumulated depreciation | (244,890) | (159,168) |
Property and equipment, net | 365,392 | 401,661 |
Buildings [Member] | ||
Property and equipment, net [Line Items] | ||
Gross carrying amount | 158,119 | 153,093 |
Servers, computers and equipment [Member] | ||
Property and equipment, net [Line Items] | ||
Gross carrying amount | 319,393 | 301,671 |
Leasehold improvements [Member] | ||
Property and equipment, net [Line Items] | ||
Gross carrying amount | 8,210 | 8,966 |
Renovation of buildings [Member] | ||
Property and equipment, net [Line Items] | ||
Gross carrying amount | 16,194 | 15,795 |
Furniture, fixture and office equipment [Member] | ||
Property and equipment, net [Line Items] | ||
Gross carrying amount | 5,229 | 4,788 |
Motor vehicles [Member] | ||
Property and equipment, net [Line Items] | ||
Gross carrying amount | 6,585 | 6,626 |
Construction in progress [Member] | ||
Property and equipment, net [Line Items] | ||
Gross carrying amount | $ 96,552 | $ 69,890 |
Property and equipment, net (Na
Property and equipment, net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property and equipment, net | |||
Depreciation expense | $ 108,686 | $ 77,464 | $ 40,022 |
Land use rights, net (Schedule
Land use rights, net (Schedule Of Land Use Right) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Gross carrying amount | $ 582,829 | $ 556,651 |
Less: accumulated amortization | (269,522) | (211,221) |
Land Use Rights [Member] | ||
Gross carrying amount | 415,970 | 294,957 |
Less: accumulated amortization | (45,918) | (36,187) |
Land use right, net | $ 370,052 | $ 258,770 |
Land use rights, net (Schedul_2
Land use rights, net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - Land Use Rights [Member] $ in Thousands | Dec. 31, 2021USD ($) |
2022 | $ 9,102 |
2023 | 9,102 |
2024 | 9,102 |
2025 | 9,102 |
2026 | $ 9,102 |
Land use rights, net (Narrative
Land use rights, net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization of acquired intangible assets and land use right | $ 67,233 | $ 109,422 | $ 101,491 |
Land Use Rights [Member] | |||
Amortization of acquired intangible assets and land use right | $ 8,607 | $ 6,957 | $ 6,981 |
Intangible assets, net (Summary
Intangible assets, net (Summary of Group's Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible assets, net [Line Items] | ||
Gross carrying amount | $ 582,829 | $ 556,651 |
Less: accumulated amortization | (269,522) | (211,221) |
Less: accumulated impairment | (1,225) | (1,216) |
Intangible assets, net | 312,082 | 344,214 |
Operating rights [Member] | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 7,255 | 7,088 |
Less: accumulated amortization | (7,144) | (6,980) |
Trademark | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 371,975 | 359,976 |
Less: accumulated amortization | (102,815) | (65,649) |
User bases | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 154,906 | 153,976 |
Less: accumulated amortization | (133,921) | (115,453) |
Non-compete agreement | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 12,100 | 12,100 |
Less: accumulated amortization | (12,100) | (12,100) |
Software | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 8,941 | 8,473 |
Less: accumulated amortization | (8,270) | (7,894) |
Domain names | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 1,518 | 1,197 |
Less: accumulated amortization | (644) | (538) |
Technology | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 14,770 | 2,707 |
Less: accumulated amortization | (2,988) | (1,789) |
Licenses | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 9,949 | 9,721 |
Less: accumulated amortization | (1,382) | (702) |
Other | ||
Intangible assets, net [Line Items] | ||
Gross carrying amount | 1,415 | 1,413 |
Less: accumulated amortization | $ (258) | $ (116) |
Intangible assets, net (Schedul
Intangible assets, net (Schedule of Estimated Amortization Expenses) (Details) - Indefinite-lived Intangible Assets [Member] $ in Thousands | Dec. 31, 2021USD ($) |
Amortization expense of intangible assets | |
2022 | $ 50,749 |
2023 | 50,634 |
2024 | 42,623 |
2025 | 40,953 |
2026 | $ 40,943 |
Intangible assets, net (Sched_2
Intangible assets, net (Schedule of Weighted Average Amortization Periods of Intangible Assets) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Domain names | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 15 years | 14 years |
User bases | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 3 years | 3 years |
Technology | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 6 years | 5 years |
Software | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 3 years | 3 years |
Operating rights [Member] | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 2 years | 2 years |
Licenses | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 15 years | 15 years |
Trademark | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 10 years | 10 years |
Non-compete agreement | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 1 year | 1 year |
Others | ||
Weighted average amortization periods of intangible assets | ||
Weighted average amortization period | 10 years | 10 years |
Intangible assets, net (Narrati
Intangible assets, net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization of acquired intangible assets and land use right | $ 67,233 | $ 109,422 | $ 101,491 |
Finite-Lived Intangible Assets [Member] | |||
Amortization of acquired intangible assets and land use right | $ 58,626 | $ 102,465 | $ 94,510 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | ||
Balance at beginning of the year | $ 1,872,083 | $ 1,855,909 |
Foreign currency translation adjustment | 1,255 | 107 |
Increase in goodwill related to acquisition | 84,925 | 16,067 |
Balance at end of the year | 1,958,263 | 1,872,083 |
All other | ||
Goodwill | ||
Balance at beginning of the year | 17,862 | 1,688 |
Foreign currency translation adjustment | 1,255 | 107 |
Increase in goodwill related to acquisition | 84,925 | 16,067 |
Balance at end of the year | 104,042 | 17,862 |
Bigo [Member] | ||
Goodwill | ||
Balance at beginning of the year | 1,854,221 | 1,854,221 |
Balance at end of the year | $ 1,854,221 | $ 1,854,221 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill | |||
Carrying value of reporting unit | 10.00% | 10.00% | 1.00% |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Deferred revenue (Details)
Deferred revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Contract with Customer, Liability [Line Items] | ||
Deferred revenue, current | $ 60,910 | $ 67,230 |
Deferred revenue, non-current | 6,422 | 3,132 |
Live streaming | ||
Contract with Customer, Liability [Line Items] | ||
Deferred revenue, current | 58,425 | 63,450 |
Deferred revenue, non-current | 5,931 | 2,529 |
Others [Member] | ||
Contract with Customer, Liability [Line Items] | ||
Deferred revenue, current | 2,485 | 3,780 |
Deferred revenue, non-current | $ 491 | $ 603 |
Accrued liabilities and other_3
Accrued liabilities and other current liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued liabilities and other current liabilities | ||
Revenue sharing fees and content costs | $ 129,717 | $ 121,083 |
Salaries and welfare | 99,725 | 112,217 |
Marketing and promotion expenses | 58,854 | 95,261 |
Value added taxes and other taxes payable | 137,142 | 88,215 |
Bandwidth costs | 19,746 | 29,986 |
Consideration received related to disposal of YY Live (Note 3(a)) | 1,862,750 | |
Others | 37,904 | 37,688 |
Total | $ 2,345,838 | $ 484,450 |
Short-term loans (Details)
Short-term loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term loans | ||
Short-term loans | $ 0 | $ 112,549 |
Short-term loans (Narrative) (D
Short-term loans (Narrative) (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Debt Instrument, Face Amount | $ 106,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 84,000 | ||
Restricted short-term deposits | 31,489 | $ 285 | |
Loans Payable | |||
Debt Instrument, Face Amount | 6,300 | ¥ 693 | |
Line of Credit Facility, Maximum Borrowing Capacity | 95,000 | 546 | |
Restricted short-term deposits | $ 31,000 | ¥ 200 | |
Debt Instrument, Maturity Date, Description | These loans were all with a maturity of less than one year | ||
Loans Payable | Minimum | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.36% | 1.36% | |
Loans Payable | Maximum | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.90% |
Convertible bonds (Details)
Convertible bonds (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Convertible bonds, non-current | ||
Convertible bonds | $ 924,077 | $ 779,225 |
Notes due 2025 | ||
Convertible bonds, non-current | ||
Convertible bonds | 463,319 | 410,614 |
Notes due 2026 | ||
Convertible bonds, non-current | ||
Convertible bonds | 460,758 | 368,611 |
Long-term Debt [Member] | ||
Convertible bonds, non-current | ||
Convertible bonds | $ 924,077 | $ 779,225 |
Convertible bonds (Narrative) (
Convertible bonds (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2021 | Jun. 19, 2019 | |
Convertible bonds | |||||
Aggregate principle amount | $ 106,000 | ||||
Proceeds from Convertible Debt | $ 0 | 0 | $ 901,287 | ||
Interest expense | 14,475 | 75,555 | 38,114 | ||
Convertible bonds, non-current | 924,077 | 779,225 | |||
Purchased call option | $ 77,000 | ||||
Initial conversion price | $ 127.9 | ||||
Retained earnings | $ 2,712,534 | 2,881,782 | |||
Repayment of convertible bonds | $ 0 | 0 | $ 977 | ||
Adjustment | |||||
Convertible bonds | |||||
Retained earnings | $ 86,700 | ||||
ADS | |||||
Convertible bonds | |||||
Initial conversion price | $ 95.9 | ||||
Number of shares agreed to sell | 10.4 | ||||
Convertible bonds, non-current | |||||
Convertible bonds | |||||
Aggregate principle amount | $ 1,000 | ||||
Convertible bonds, non-current | $ 924,100 | 779,200 | |||
Notes due 2025 | |||||
Convertible bonds | |||||
Aggregate principle amount | $ 500,000 | ||||
Interest rate (as a percent) | 0.75% | ||||
Proceeds from Convertible Debt | 491,000 | ||||
Convertible bonds, non-current | 463,319 | 410,614 | |||
Debt issuance costs | 9,000 | ||||
Amortization of debt issuance costs | 7,000 | ||||
Amount allocated as deduction to the equity component | 2,000 | ||||
Notes due 2026 | |||||
Convertible bonds | |||||
Aggregate principle amount | $ 500,000 | ||||
Interest rate (as a percent) | 1.375% | ||||
Proceeds from Convertible Debt | 491,000 | ||||
Convertible bonds, non-current | 460,758 | 368,611 | |||
Debt issuance costs | 9,000 | ||||
Amortization of debt issuance costs | 6,000 | ||||
Amount allocated as deduction to the equity component | 3,000 | ||||
Notes due 2025 and 2026 | |||||
Convertible bonds | |||||
Interest expense | 13,332 | $ 71,898 | |||
Initial conversion rate | $ 0.0104271 | ||||
Initial conversion price | $ 95.9 | ||||
Debt Instrument, Repurchased Amount | 66,700 | ||||
Net gain on extinguishment of debt | $ 4,000 | ||||
Repurchase price of the principal amount, percentage | 100.00% | ||||
Notes due 2025 and 2026 | Repayment Amount Of The Notes Due Equal To 71.1 Million [Member] | |||||
Convertible bonds | |||||
Repayment of convertible bonds | $ 71,100 |
Cost of revenues (Details)
Cost of revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based compensation | $ 0 | $ 470 | $ 604 |
Cost of revenues [Member] | |||
Revenue sharing fees and content costs | 1,158,435 | 812,706 | 305,647 |
Bandwidth costs | 96,536 | 120,419 | 101,957 |
Payment handling costs | 212,655 | 190,583 | 94,127 |
Salary and welfare | 116,679 | 102,330 | 56,430 |
Technical service fee | 55,874 | 59,325 | 43,893 |
Depreciation and amortization | 87,339 | 61,021 | 29,480 |
Share-based compensation | 8,089 | 5,797 | 5,932 |
Other costs | 45,543 | 25,965 | 19,454 |
Total | $ 1,781,150 | $ 1,378,146 | $ 656,920 |
Other income (Details)
Other income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other income | |||
Government grants | $ 16,947 | $ 6,518 | $ 4,514 |
Others | 3,429 | 1,577 | 1,160 |
Total | $ 20,376 | $ 8,095 | $ 5,674 |
Income tax (Schedule of Current
Income tax (Schedule of Current and Deferred Portions of Income Tax Expense Included in Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current and deferred portions of income tax expense | |||
(Loss) income before income tax expenses | $ (77,589) | $ 13,657 | $ (94,742) |
Current income tax benefit (expenses) | (35,550) | (15,209) | 379 |
Deferred income tax benefit (expenses) | 9,805 | (12,616) | 19,719 |
Income tax benefit (expenses) | (25,745) | (27,825) | 20,098 |
PRC Entities | |||
Current and deferred portions of income tax expense | |||
(Loss) income before income tax expenses | (55,908) | (170,994) | (117,953) |
Current income tax benefit (expenses) | (15,026) | (6,278) | 4,655 |
Deferred income tax benefit (expenses) | 1,013 | (6,376) | 4,843 |
Income tax benefit (expenses) | (14,013) | (12,654) | 9,498 |
Non PRC Entities | |||
Current and deferred portions of income tax expense | |||
(Loss) income before income tax expenses | (21,681) | 184,651 | 23,211 |
Current income tax benefit (expenses) | (20,524) | (8,931) | (4,276) |
Deferred income tax benefit (expenses) | 8,792 | (6,240) | 14,876 |
Income tax benefit (expenses) | $ (11,732) | $ (15,171) | $ 10,600 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income tax | ||||
Singapore statutory income tax rate (*) | 17.00% | 17.00% | 17.00% | |
Effect of tax holiday and preferential tax rate benefit (as a percent) | 20.90% | (163.20%) | 30.60% | |
Effect of different tax rates available to different jurisdictions (as a percent) | [1] | 47.60% | (60.10%) | 24.00% |
Permanent differences (as a percent) | [2] | (66.30%) | 151.90% | (0.50%) |
Change in valuation allowance (as a percent) | (95.20%) | 484.70% | (68.60%) | |
Effect of Super Deduction available to the Group (as a percent) | 42.80% | (226.60%) | 18.70% | |
Effective income tax rate (as a percent) | (33.20%) | 203.70% | 21.20% | |
[1] | The effect of different tax rates available to different jurisdictions was mainly due to the re-measurement gain of the previously held equity interest in Bigo on the acquisition date incurred by Duowan BVI whose applicable tax rate is zero for the year ended December 31, 2019. | |||
[2] | Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. |
Income tax (Schedule of Tax Eff
Income tax (Schedule of Tax Effects of Temporary Differences that Give Rise to Deferred Tax Asset Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Deferred tax assets: | ||||||
Tax loss carried forward | $ 176,009 | $ 123,884 | ||||
Allowance for doubtful receivable, accrued expense and others not currently deductible for tax purposes | 33,341 | 35,969 | ||||
Deferred revenue | 5,346 | 4,576 | ||||
Impairment of investment | 7,632 | 3,607 | ||||
Others | 1,177 | |||||
Valuation allowance | (213,688) | [1] | (150,252) | [1] | $ (87,106) | $ (24,980) |
Amounts offset by deferred tax liabilities | (8,640) | (18,961) | ||||
Total deferred tax assets, net | 0 | |||||
Deferred tax liabilities: | ||||||
Related to the fair value changes of investments | 9,061 | 23,118 | ||||
Related to acquired intangible assets | 34,013 | 36,767 | ||||
Others | 1,780 | 1,498 | ||||
Amounts offset by deferred tax assets | (8,640) | (18,961) | ||||
Total deferred tax liabilities, net | $ 36,214 | $ 42,422 | ||||
[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 Movemen
Income tax (Schedule of Movement of valuation allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Income tax | |||||
Balance at beginning of the year | $ (150,252) | [1] | $ (87,106) | $ (24,980) | |
Additions | (119,999) | (96,629) | (78,269) | ||
Reversals | 56,563 | 33,483 | 16,143 | ||
Balance at end of the year | $ (213,688) | [1] | $ (150,252) | [1] | $ (87,106) |
[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 (Narrative) (Details
Income tax (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | 120 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2017 | |
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 17.00% | 17.00% | 17.00% | |||
Aggregate undistributed earnings of subsidiaries available for distribution | $ 4,930,397 | $ 2,607,194 | $ 4,930,397 | |||
Dividends | 161,445 | 67,354 | ||||
Deferred tax liabilities accrued for undistributed earnings | 0 | $ 0 | 0 | |||
Cayman Islands Tax Information Authority | ||||||
Income tax [Line Items] | ||||||
Withholding taxes | $ 0 | |||||
Maximum | Inland Revenue, Hong Kong | ||||||
Income tax [Line Items] | ||||||
PRC withholding tax rate (as a percent) | 5.00% | |||||
China | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 25.00% | |||||
PRC withholding tax rate (as a percent) | 10.00% | |||||
China | HNTE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | ||||
Term of preferential income tax rate | 3 years | |||||
China | KNSE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 10.00% | |||||
Term of preferential income tax rate | 3 years | |||||
Tax reduction available as a percentage of the applicable rate | 50.00% | |||||
China | State Administration of Taxation, China | ||||||
Income tax [Line Items] | ||||||
Amount of tax deduction to tax assessable profits as a percentage of qualified research and development | 75.00% | 50.00% | ||||
Operating loss carryforwards | $ 575,759 | 575,759 | ||||
Foreign Tax Authority | Inland Revenue, Hong Kong | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 16.50% | |||||
Operating loss carryforwards | $ 9,373 | 9,373 | ||||
Foreign Tax Authority | Inland Revenue, Singapore (IRAS) | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 17.00% | |||||
Beneficial tax rate | 5.00% | |||||
Operating loss carryforwards | $ 299,516 | 299,516 | ||||
Other countries | ||||||
Income tax [Line Items] | ||||||
Operating loss carryforwards | $ 104,119 | $ 104,119 | ||||
Other countries | Inland Revenue, Singapore (IRAS) | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 17.00% | |||||
Guangzhou Huaduo | China | HNTE | ||||||
Income tax [Line Items] | ||||||
Beneficial tax rate | 15.00% | 15.00% | ||||
Guangzhou Huanju Shidai | China | HNTE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 15.00% | |||||
Other PRC Subsidiaries | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 25.00% | |||||
Guangzhou BaiGuoYuan | China | HNTE | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||
Guangzhou BaiGuoYuan | China | Software Enterprise | ||||||
Income tax [Line Items] | ||||||
Preferential tax rate (as a percent) | 12.50% | 0.00% | ||||
Duowan BVI | ||||||
Income tax [Line Items] | ||||||
Income tax rate (as a percent) | 0.00% |
Mezzanine equity (Narrative) (D
Mezzanine equity (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Temporary Equity, Accretion to Redemption Value | $ 5,000 | $ 5,000 | $ 5,000 | |
Other Subsidiary | ||||
Redeemable NonControlling Interest Equity Stock Issued During Period Shares New Issues | 500,000,000 | |||
Redeemable NonControlling Interest Equity Stock Issued During Period Value New Issues | $ 50,000 |
Common shares and treasury sh_2
Common shares and treasury shares (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 16, 2021 | Sep. 09, 2021 | Aug. 13, 2019 | Dec. 31, 2018 | |
Common shares [Line Items] | ||||||||
Purchase of a capped call option | $ 11.7 | |||||||
Initial investment returned | $ 12.2 | |||||||
Transfer from treasury shares to issued common shares for vested restricted share units | 1,442,020 | |||||||
Class A common shares | ||||||||
Common shares [Line Items] | ||||||||
Common shares, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | |||||
Common shares, shares issued | 1,317,840,464 | 1,314,208,824 | 1,301,845,404 | |||||
Common shares, shares outstanding | 1,146,336,305 | 1,272,346,218 | 1,293,162,504 | |||||
Number of shares repurchased | 130,309,760 | 33,165,820 | 8,682,900 | |||||
Average price per ADS | $ 60.3154 | $ 69.8407 | $ 54.6194 | |||||
Average price per share | $ 3.0158 | $ 3.4920 | $ 2.7310 | |||||
Aggregate consideration | $ 393 | $ 115.8 | $ 23.7 | |||||
Class B common shares | ||||||||
Common shares [Line Items] | ||||||||
Common shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common shares, shares issued | 326,509,555 | 326,509,555 | 326,509,555 | |||||
Common shares, shares outstanding | 326,509,555 | 326,509,555 | 326,509,555 | |||||
Restricted shares | Class A common shares | ||||||||
Common shares [Line Items] | ||||||||
Issuance of common share (in shares) | 3,631,640 | 12,363,420 | 6,216,060 | |||||
September 2021 share repurchase plan | ||||||||
Common shares [Line Items] | ||||||||
Aggregate consideration | $ 235.7 | |||||||
Total outstanding share repurchase program | $ 200 | |||||||
November 2021 share repurchase plan | ||||||||
Common shares [Line Items] | ||||||||
Total outstanding share repurchase program | $ 1,000 | |||||||
Common shares | Class A common shares | ||||||||
Common shares [Line Items] | ||||||||
Common shares, shares outstanding | 1,146,336,305 | 1,272,346,218 | 1,293,162,504 | 981,740,848 | ||||
Issuance of common stock for acquisition (in shares) | 305,127,046 | |||||||
Transfer from treasury shares to issued common shares for vested restricted share units | 1,442,020 | |||||||
Common shares | Class A common shares | BIGOINC | ||||||||
Common shares [Line Items] | ||||||||
Issuance of common stock for acquisition (in shares) | 305,127,046 | |||||||
Common shares | Class B common shares | ||||||||
Common shares [Line Items] | ||||||||
Common shares, shares outstanding | 326,509,555 | 326,509,555 | 326,509,555 | 288,182,976 | ||||
Issuance of common stock for acquisition (in shares) | 38,326,579 | |||||||
Common shares | Class B common shares | BIGOINC | ||||||||
Common shares [Line Items] | ||||||||
Issuance of common stock for acquisition (in shares) | 38,326,579 | |||||||
ADS | ||||||||
Common shares [Line Items] | ||||||||
Number of shares repurchased | 6,515,488 | 1,658,291 | 434,145 | |||||
Total outstanding share repurchase program | $ 300 |
Share-based compensation (Share
Share-based compensation (Share Options - Narrative) (Details) $ in Thousands | Mar. 04, 2019USD ($) | Mar. 31, 2019shares | Dec. 31, 2009shares | Dec. 31, 2008shares | Dec. 31, 2021USD ($)installmentshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Sep. 30, 2021shares | Sep. 16, 2011shares |
Share-based compensation [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ | $ 0 | $ 470 | $ 604 | |||||||
Shares authorized for issuance | 43,000,000 | |||||||||
Share-based Compensation | $ | 33,382 | 92,160 | 76,356 | |||||||
BIGOINC | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ | $ 88,047 | |||||||||
General and administrative expenses [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Share-based Compensation | $ | $ (45) | $ 42,406 | $ 17,089 | |||||||
Employees [Member] | Vested in four equal installments over the following 48 months | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Number of vesting installments | installment | 2 | |||||||||
Share Incentive Scheme [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 0 | 438,100 | ||||||||
2011 Incentive Scheme [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Awards granted (in shares) | 438,100 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 893,000 | 1,065,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 6,444,200 | |||||||||
2011 Incentive Scheme [Member] | Employees [Member] | Vested after 24 months of the grant date and two equal installments over the following 24 months | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Number of vesting installments | installment | 3 | |||||||||
Vesting percentage remaining | 50.00% | |||||||||
Vesting percentage | 50.00% | |||||||||
Vesting period | 36 months | |||||||||
2011 Incentive Scheme [Member] | Employees [Member] | Vested in four equal installments over the following 48 months | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Vesting period | 24 months | |||||||||
Secondary vesting period | 24 months | |||||||||
2011 Incentive Scheme [Member] | Employees [Member] | Vested in three equal installments over the following 36 months | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Number of vesting installments | installment | 1 | |||||||||
Vesting percentage remaining | 50.00% | |||||||||
Vesting percentage | 50.00% | |||||||||
Vesting period | 24 months | |||||||||
Secondary vesting period | 12 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 options [Member] | Pre-2009 Scheme Options [Member] | Non-employee [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Awards granted (in shares) | 3,832,290 | |||||||||
Share options [Member] | 2011 Incentive Scheme [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ | $ 2,222 | $ 5,558 | $ 7,134 | |||||||
Restricted shares | BIGOINC | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | $ | $ 9,733 | $ 38,618 | $ 52,994 | |||||||
Restricted shares | 2011 Incentive Scheme [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 7,888,160 | 4,541,086 | 16,041,327 | |||||||
Restricted shares | Bigo's Share Incentive Scheme [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 27,370 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 7 days | |||||||||
Restricted shares | Bigo's Share Incentive Scheme [Member] | BIGOINC | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 38,042,760 | |||||||||
Restricted shares | Bigo's Share Incentive Scheme [Member] | Vested in four equal installments over the following 48 months | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Vesting period | 48 months | |||||||||
Restricted shares | Bigo's Share Incentive Scheme [Member] | Vested in three equal installments over the following 36 months | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Vesting period | 36 months | |||||||||
Restricted share units [Member] | 2011 Incentive Scheme [Member] | ||||||||||
Share-based compensation [Line Items] | ||||||||||
Shares authorized for issuance | 131,950,949 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,387,270 | 62,770,405 | 16,114,095 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 45,306 | |||||||||
Share-based Compensation | $ | $ 21,427 | $ 47,514 | $ 15,624 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 1 year 3 months 7 days |
Share-based compensation (Restr
Share-based compensation (Restricted Share Units - Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Oct. 31, 2012 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | 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 | |||||
Share-based compensation | $ 0 | $ 470 | $ 604 | |||
2011 Incentive Scheme [Member] | Restricted share units [Member] | ||||||
Share-based compensation [Line Items] | ||||||
Shares approved for grants to qualified persons | 131,950,949 | |||||
Granted (in shares) | 9,387,270 | 62,770,405 | 16,114,095 | |||
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 | |||||
Total unrecognized compensation expense | $ 45,306 |
Share-based compensation (Summa
Share-based compensation (Summary of Restricted Share Units Activity) (Details) - 2011 Incentive Scheme [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of restricted shares | |||
Outstanding at the end of the period (in shares) | 9,414,400 | ||
Weighted average grant-date fair value | |||
Outstanding at the end of the period (in dollars per share) | $ 3.7997 | ||
Restricted share units [Member] | |||
Number of restricted shares | |||
Outstanding at the beginning of the period (in shares) | 72,652,890 | 27,113,132 | 25,229,634 |
Granted (in shares) | 9,387,270 | 62,770,405 | 16,114,095 |
Forfeited (in shares) | (42,872,565) | (10,312,521) | (6,381,786) |
Vested (in shares) | (15,139,700) | (6,918,126) | (7,848,811) |
Outstanding at the end of the period (in shares) | 24,027,895 | 72,652,890 | 27,113,132 |
Expected to vest at the end of the period (in shares) | 21,487,110 | ||
Weighted average grant-date fair value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 3.6059 | $ 3.9034 | $ 4.9639 |
Granted (in dollars per share) | 3.6323 | 3.6059 | 3.0005 |
Forfeited (in dollars per share) | 3.5461 | 3.9198 | 4.7840 |
Vested (in dollars per share) | 3.6104 | 4.3045 | 4.7427 |
Outstanding at the end of the period (in dollars per share) | 3.7202 | $ 3.6059 | $ 3.9034 |
Expected to vest at the end of the period (in dollars per share) | $ 3.7203 |
Share-based compensation (Res_2
Share-based compensation (Restricted Shares - Narrative) (Details) - USD ($) $ in Thousands | Mar. 04, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Post-acquisition share-based compensation | $ 0 | $ 470 | $ 604 | ||
BIGOINC | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Post-acquisition share-based compensation | $ 88,047 | ||||
Restricted shares | BIGOINC | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Post-acquisition share-based compensation | $ 9,733 | 38,618 | $ 52,994 | ||
Bigo's Share Incentive Scheme [Member] | Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation expense | $ 27,370 | ||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 9 months 7 days | ||||
Bigo's Share Incentive Scheme [Member] | Restricted shares | Vested after 24 months of the grant date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50.00% | ||||
Vesting period | 24 months | ||||
Bigo's Share Incentive Scheme [Member] | Restricted shares | Vested in two equal installments over the following 24 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50.00% | ||||
Vesting period | 24 months | ||||
Bigo's Share Incentive Scheme [Member] | Restricted shares | Vested in four equal installments over the following 48 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 48 months | ||||
Bigo's Share Incentive Scheme [Member] | Restricted shares | Vested in three equal installments over the following 36 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 36 months |
Share-based compensation (Sum_2
Share-based compensation (Summary of Restricted Shares Activity) (Details) - 2011 Incentive Scheme [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of restricted shares | |||
Outstanding at the end of the period (in shares) | 9,414,400 | ||
Weighted average grant-date fair value | |||
Outstanding at the end of the period (in dollars per share) | $ 3.7997 | ||
Restricted shares | |||
Number of restricted shares | |||
Outstanding at the beginning of the period (in shares) | 26,420,365 | 38,204,251 | 0 |
Replacement due to acquisition of Bigo | 38,042,760 | ||
Granted (in shares) | 7,888,160 | 4,541,086 | 16,041,327 |
Forfeited (in shares) | (8,661,973) | (4,554,972) | (7,279,877) |
Vested (in shares) | (10,497,147) | (11,770,000) | (8,599,959) |
Outstanding at the end of the period (in shares) | 15,149,405 | 26,420,365 | 38,204,251 |
Expected to vest at the end | 13,334,495 | ||
Weighted average grant-date fair value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 3.5577 | $ 3.5267 | $ 0 |
Replacement due to acquisition of Bigo | 3.6100 | ||
Granted (in dollars per share) | 3.0435 | 3.9739 | 3.4750 |
Forfeited (in dollars per share) | 3.7025 | 3.5287 | 3.6302 |
Vested (in dollars per share) | 3.4862 | 3.6290 | 3.6608 |
Outstanding at the end of the period (in dollars per share) | 3.2566 | $ 3.5577 | $ 3.5267 |
Expected to vest at the end (in dollars per share) | $ 3.2151 |
Share-based compensation (Sha_2
Share-based compensation (Share-based compensation-Share options-2011 Share Incentive Scheme) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Granted ,weighted average exercise price | $ 1.7582 | |||
2011 Incentive Scheme [Member] | ||||
Balance ,options | 10,307,400 | 10,307,400 | 10,934,300 | |
Granted ,options | 438,100 | |||
Forfeited ,Options | (893,000) | (1,065,000) | ||
Balance ,options | 10,307,400 | 10,307,400 | 10,934,300 | |
Expected to vest at December 31 ,options | 9,414,400 | |||
Exercisable at December 31, options | 6,444,200 | |||
Granted ,weighted average exercise price | $ 3.5350 | |||
Forfeited ,weighted average exercise price | $ 3.8830 | 4.5225 | ||
Balance ,weighted average exercise price | $ 3.8069 | $ 3.8069 | $ 4.7025 | |
Expected to vest at December 31, weighted average exercise price | $ 3.7997 | |||
Exercisable at December 31, weighted average exercise price | $ 3.9216 | |||
Balance ,contractual life | 2 years 9 months 18 days | 4 years 5 months 12 days | 5 years 5 months 12 days | 0 years |
Expected to vest at December 31, contractual life | 2 years 9 months 18 days | |||
Exercisable at December 31, contractual life | 2 years 11 months 19 days | |||
Balance, December 31, aggregate intrinsic value | $ 3,669 | $ 0 | ||
Expected to vest at December 31, aggregate intrinsic value | $ 0 | |||
Exercisable at December 31, aggregate intrinsic value | $ 0 | $ 0 |
Share-based compensation (Binom
Share-based compensation (Binomial option-pricing) (Details) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Share-based compensation | |
Weighted average fair value per option granted | $ 1.7582 |
Weighted average exercise price | $ 3.5350 |
Risk-free interest rate | 1.82% |
Expected term (in year) | 6 years |
Expected volatility | 56.00% |
Dividend yield | 0.00% |
Share-based compensation (Sha_3
Share-based compensation (Share based awards granted to an employee of a subsidiary and Other share based compensation - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation [Abstract] | |||
Share-based compensation | $ 0 | $ 470 | $ 604 |
Basic and diluted net income _3
Basic and diluted net income per share (Schedule of Calculation of Basic and Diluted Net Income Per Share) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020¥ / shares | [2] | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019¥ / shares | [2] | ||||
Numerator: | ||||||||||
Net loss from continuing operations attributable to common shareholders of JOYY Inc. | $ | $ (125,096) | $ (28,305) | $ (74,344) | |||||||
Numerator for diluted loss per share from continuing operations | $ | (125,096) | (28,305) | (74,344) | |||||||
Net income from discontinued operations attributable to common shareholders of JOYY Inc. | $ | 35,567 | 1,391,638 | 574,592 | |||||||
Incremental dilution from Huya | $ | [1] | (655) | (2,033) | |||||||
Numerator for diluted income per share from discontinued operations | $ | $ (89,529) | $ 1,362,678 | $ 498,215 | |||||||
Denominator: | ||||||||||
Denominator for basic calculation-weighted average number of Class A and Class B common shares outstanding | shares | 1,562,016,001 | 1,600,199,759 | 1,544,396,920 | |||||||
Denominator for diluted calculation (in shares) | shares | 1,562,016,001 | 1,600,199,759 | 1,544,396,920 | |||||||
Basic net income (loss) | ||||||||||
Net income per share, Basic | (per share) | $ (0.06) | [2] | $ 0.85 | ¥ 0.85 | $ 0.32 | [2] | ||||
Continued operations | (0.08) | (0.02) | (0.05) | |||||||
Discontinued operations | 0.02 | 0.87 | 0.37 | |||||||
Diluted net income (loss) | ||||||||||
Diluted net income per share | (per share) | (0.06) | [2] | 0.85 | ¥ 0.85 | 0.32 | ¥ 0.32 | ||||
Continued operations | (0.08) | (0.02) | (0.05) | |||||||
Discontinued operations | 0.02 | 0.87 | 0.37 | |||||||
ADSs [Member] | ||||||||||
Basic net income (loss) | ||||||||||
Net income per share, Basic | [2] | (1.14) | 17.04 | 6.48 | ||||||
Continued operations | [2] | (1.60) | (0.35) | (0.96) | ||||||
Discontinued operations | [2] | 0.46 | 17.39 | 7.44 | ||||||
Diluted net income (loss) | ||||||||||
Diluted net income per share | [2] | (1.14) | 17.04 | 6.45 | ||||||
Continued operations | [2] | (1.60) | (0.35) | (0.96) | ||||||
Discontinued operations | [2] | $ 0.46 | $ 17.39 | $ 7.41 | ||||||
Number of common shares represented by each ADS | 20 | |||||||||
[1] | (1) In calculation of diluted net income per share, assuming a dilutive effect, all of Huya’s existing unvested restricted share units and unexercised share options are treated as vested and exercised by Huya under the treasury stock method, causing the decrease percentage of the weighted average number of shares held by the Company in Huya. As a result, Huya’s net income (loss) attributable to the Company on a diluted basis decreased accordingly, which is presented as “incremental dilution from Huya” in the table. | |||||||||
[2] | Each ADS represents 20 common shares. |
Basic and diluted net income _4
Basic and diluted net income per share (Schedule of shares outstanding were excluded from the calculation of diluted net (loss) income per share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 9,414,400 | 10,307,400 | 10,307,400 |
Restricted share units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 24,027,895 | 72,652,890 | 27,113,132 |
Restricted shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 15,149,405 | 26,420,365 | 38,204,251 |
Convertible bonds | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 201,677,195 | 210,568,000 | 208,542,000 |
Related party transactions - Sc
Related party transactions - Schedule of Significant Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related party transactions [Line Items] | |||
Loan to related parties | $ 34,035 | $ 723 | $ 24,675 |
Payment on behalf of related parties, net of repayments | 55,301 | 335 | (1,780) |
Repayment of loans from related parties | 156 | 0 | 0 |
Online games revenue [Member] | |||
Related party transactions [Line Items] | |||
Revenue shared from related parties | 0 | 0 | 521 |
Guangzhou Sunhongs | Bandwidth service [Member] | |||
Related party transactions [Line Items] | |||
Expense with related party | 3,287 | 14,229 | 13,434 |
Other Related Party [Member] | |||
Related party transactions [Line Items] | |||
Others | 2,396 | 850 | 2,014 |
Related parties | |||
Related party transactions [Line Items] | |||
Disposal of investments to related parties | 0 | 20,271 | 0 |
Expense with related party | 3,149 | 2,533 | 3,706 |
Kingsoft Cloud | |||
Related party transactions [Line Items] | |||
Purchase of fixed assets from Kingsoft Cloud | 0 | 427 | 2,435 |
Kingsoft Cloud | Bandwidth service [Member] | |||
Related party transactions [Line Items] | |||
Expense with related party | $ 448 | $ 2,126 | $ 1,727 |
Related party transactions - _2
Related party transactions - Schedule of Amounts Due from/to Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related party transactions [Line Items] | ||
Amounts due from related parties, current | $ 56,984 | $ 611 |
Amounts due to related parties | 6,931 | 3,822 |
Shopline Group | ||
Related party transactions [Line Items] | ||
Amounts due from related parties, current | 56,316 | 0 |
Huya [Member] | ||
Related party transactions [Line Items] | ||
Amounts due to related parties | 4,363 | 56 |
Other Related Party [Member] | ||
Related party transactions [Line Items] | ||
Amounts due from related parties, current | 668 | 611 |
Amounts due to related parties | 1,056 | 2,112 |
Xiaomi Group [Member] | ||
Related party transactions [Line Items] | ||
Amounts due to related parties | 1,384 | 494 |
Guangzhou Sunhongs [Member] | ||
Related party transactions [Line Items] | ||
Amounts due to related parties | $ 128 | $ 1,160 |
Fair value measurements - Summa
Fair value measurements - Summary of Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Short-term investments (i) | $ 946,543 | $ 489,101 |
Recurring [Member] | ||
Assets | ||
Short-term investments (i) | 946,543 | 489,101 |
Equity investment with readily determinable fair values (ii) | 25,480 | 184,968 |
Derivative - forward exchange contracts | 54 | |
Total | 972,023 | 674,123 |
Liabilities | ||
Derivatives - forward exchange contracts | (6,789) | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Short-term investments (i) | 212,795 | 124,176 |
Equity investment with readily determinable fair values (ii) | 25,480 | 184,968 |
Total | 238,275 | 309,144 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Short-term investments (i) | 682,697 | 364,925 |
Equity investment with readily determinable fair values (ii) | 0 | |
Derivative - forward exchange contracts | 54 | |
Total | 682,697 | 364,979 |
Liabilities | ||
Derivatives - forward exchange contracts | $ (6,789) | |
Recurring [Member] | Level 3 [Member] | ||
Assets | ||
Short-term investments (i) | 51,051 | |
Total | $ 51,051 |
Fair value measurements - Sched
Fair value measurements - Schedule of Changes in Level 3 Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair value measurements | ||
Balance at the beginning | $ 1,000 | $ 0 |
Acquisition | 1,000 | |
Impairment | (1,000) | |
Balance at the end | $ 0 | $ 1,000 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair value measurements | |||
Equity Securities, FV-NI, Gain | $ 14,045 | $ 14,543 | $ 394,919 |
Impairment of investments | $ 93,632 | $ 6,186 | $ 8,870 |
Commitments and contingencies_2
Commitments and contingencies (Schedule of Future Minimum Payments Under Non-cancellable Operating Leases) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Future minimum payments under non-cancellable operating leases | |
2022 | $ 12,038 |
2023 | 4,368 |
2024 | 869 |
Total undiscounted cash flows | 17,766 |
Short Term Lease Commitment And Leases That Have Not Yet Commenced Member | |
Future minimum payments under non-cancellable operating leases | |
2022 | 1,846 |
2023 | 223 |
2024 | 43 |
Total undiscounted cash flows | $ 2,112 |
Commitments and contingencies_3
Commitments and contingencies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 09, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and contingencies | |||
Outstanding capital commitments | $ 109,881 | $ 142,975 | |
Ability period to file notice of appeal by plaintiff | 30 days |
Dividends (Details)
Dividends (Details) | Mar. 16, 2022$ / shares |
Dividends Payable [Line Items] | |
Dividend per share | $ 0.0255 |
ADS | |
Dividends Payable [Line Items] | |
Dividend per share | $ 0.51 |
Restricted net assets (Details)
Restricted net assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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% | |
subsidiaries | ||
Restricted net assets | $ 210,740 | $ 78,416 |
VIE's | ||
Restricted net assets | $ 1,088,061 | $ 902,896 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018segment | ||
Segment Reporting [Line Items] | |||||
Number of operating segments | segment | 3 | 2 | |||
Net revenues | |||||
Total net revenues | $ 2,619,051 | $ 1,918,144 | $ 900,702 | ||
Cost of revenues | [1] | (1,781,150) | (1,378,146) | (656,920) | |
Gross profit | 837,901 | 539,998 | 243,782 | ||
Operating expenses | |||||
Research and development expenses | [1] | (279,781) | (302,818) | (236,504) | |
Sales and marketing expenses | [1] | (468,407) | (505,389) | (404,495) | |
General and administrative expenses | [1] | (221,731) | (146,666) | (135,564) | |
Total operating expenses | (969,919) | (954,873) | (776,563) | ||
Gain on disposal of business | 4,959 | 0 | 11,754 | ||
Other income | 20,376 | 8,095 | 5,674 | ||
Operating income (loss) | (106,683) | (406,780) | (515,353) | ||
Interest expense | (14,475) | (75,555) | (38,114) | ||
Interest income and investment income | 91,233 | 89,078 | 61,747 | ||
Foreign currency exchange (losses) gains, net | (13,377) | (17,472) | 1,295 | ||
Gain on disposal and deemed disposal of investments | (23,762) | 272,281 | 0 | ||
Loss on disposal and deemed disposal of investments | (23,762) | ||||
Loss on fair value changes of investment | (15,435) | 160,849 | 397,960 | ||
(Loss) gain on extinguishment of debt and derivative | 5,291 | (6,277) | (2,277) | ||
(Loss) gain on extinguishment of debt and derivative | 5,291 | (6,277) | (2,277) | ||
Other non-operating expenses | (381) | (2,467) | 0 | ||
Income (loss) before income tax expenses | (77,589) | 13,657 | (94,742) | ||
Income tax (expenses) benefits | (25,745) | (27,825) | 20,098 | ||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | (103,334) | (14,168) | (74,644) | ||
Share of income (loss) in equity method investments, net of income taxes | (26,217) | (7,634) | 5,974 | ||
Net income (loss) from continuing operations | (129,551) | (21,802) | (68,670) | ||
Share-based compensation | 33,382 | 92,160 | 76,356 | ||
Cost of revenues [Member] | |||||
Operating expenses | |||||
Share-based compensation | 8,089 | 5,797 | 5,932 | ||
Research and development expenses | |||||
Operating expenses | |||||
Share-based compensation | 24,053 | 42,646 | 52,611 | ||
Sales and marketing expenses [Member] | |||||
Operating expenses | |||||
Share-based compensation | 1,285 | 1,311 | 724 | ||
General and administrative expenses [Member] | |||||
Operating expenses | |||||
Share-based compensation | (45) | 42,406 | 17,089 | ||
Live streaming | |||||
Net revenues | |||||
Total net revenues | 2,476,790 | 1,815,826 | 769,148 | ||
Others [Member] | |||||
Net revenues | |||||
Total net revenues | 142,261 | 102,318 | 131,554 | ||
Bigo [Member] | |||||
Net revenues | |||||
Total net revenues | 2,323,758 | 1,732,811 | 716,329 | ||
Cost of revenues | (1,539,188) | (1,207,124) | (505,643) | ||
Gross profit | 784,570 | 525,687 | 210,686 | ||
Operating expenses | |||||
Research and development expenses | (204,597) | (194,122) | (141,553) | ||
Sales and marketing expenses | (402,476) | (446,521) | (297,713) | ||
General and administrative expenses | (56,827) | (85,685) | (47,800) | ||
Total operating expenses | (663,900) | (726,328) | (487,066) | ||
Gain on disposal of business | 0 | ||||
Other income | 6,929 | 3,550 | 1,390 | ||
Operating income (loss) | 127,599 | (197,091) | (274,990) | ||
Interest expense | (3,460) | (7,892) | (4,584) | ||
Interest income and investment income | 1,316 | 155 | 389 | ||
Foreign currency exchange (losses) gains, net | (12,444) | (17,035) | 1,967 | ||
Gain on disposal and deemed disposal of investments | 0 | ||||
Loss on disposal and deemed disposal of investments | 0 | ||||
Loss on fair value changes of investment | 0 | 0 | |||
(Loss) gain on extinguishment of debt and derivative | (52) | (281) | |||
Other non-operating expenses | 0 | (889) | |||
Income (loss) before income tax expenses | 112,959 | (223,033) | (277,218) | ||
Income tax (expenses) benefits | (9,153) | 9,425 | 19,605 | ||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | 103,806 | (213,608) | (257,613) | ||
Share of income (loss) in equity method investments, net of income taxes | 0 | 0 | |||
Net income (loss) from continuing operations | 103,806 | (213,608) | (257,613) | ||
Bigo [Member] | Cost of revenues [Member] | |||||
Operating expenses | |||||
Share-based compensation | 5,974 | 4,094 | 4,084 | ||
Bigo [Member] | Research and development expenses | |||||
Operating expenses | |||||
Share-based compensation | 17,179 | 33,795 | 43,625 | ||
Bigo [Member] | Sales and marketing expenses [Member] | |||||
Operating expenses | |||||
Share-based compensation | 654 | 706 | 617 | ||
Bigo [Member] | General and administrative expenses [Member] | |||||
Operating expenses | |||||
Share-based compensation | (5,297) | 33,668 | 4,720 | ||
Bigo [Member] | Live streaming | |||||
Net revenues | |||||
Total net revenues | 2,231,366 | 1,659,311 | 657,788 | ||
Bigo [Member] | Others [Member] | |||||
Net revenues | |||||
Total net revenues | 92,392 | 73,500 | 58,541 | ||
All other [Member] | |||||
Net revenues | |||||
Total net revenues | 295,360 | 185,333 | 184,373 | ||
Cost of revenues | (242,029) | (171,022) | (151,277) | ||
Gross profit | 53,331 | 14,311 | 33,096 | ||
Operating expenses | |||||
Research and development expenses | (75,184) | (108,696) | (94,951) | ||
Sales and marketing expenses | (65,931) | (58,868) | (106,782) | ||
General and administrative expenses | (164,904) | (60,981) | (87,764) | ||
Total operating expenses | (306,019) | (228,545) | (289,497) | ||
Gain on disposal of business | 4,959 | 11,754 | |||
Other income | 13,447 | 4,545 | 4,284 | ||
Operating income (loss) | (234,282) | (209,689) | (240,363) | ||
Interest expense | (13,468) | (72,474) | (37,970) | ||
Interest income and investment income | 92,370 | 93,734 | 65,798 | ||
Foreign currency exchange (losses) gains, net | (933) | (437) | (672) | ||
Gain on disposal and deemed disposal of investments | 272,281 | ||||
Loss on disposal and deemed disposal of investments | (23,762) | ||||
Loss on fair value changes of investment | (15,435) | 160,849 | 397,960 | ||
(Loss) gain on extinguishment of debt and derivative | 5,343 | (5,996) | (2,277) | ||
Other non-operating expenses | (381) | (1,578) | |||
Income (loss) before income tax expenses | (190,548) | 236,690 | 182,476 | ||
Income tax (expenses) benefits | (16,592) | (37,250) | 493 | ||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | (207,140) | 199,440 | 182,969 | ||
Share of income (loss) in equity method investments, net of income taxes | (26,217) | (7,634) | 5,974 | ||
Net income (loss) from continuing operations | (233,357) | 191,806 | 188,943 | ||
All other [Member] | Cost of revenues [Member] | |||||
Operating expenses | |||||
Share-based compensation | 2,115 | 1,703 | 1,848 | ||
All other [Member] | Research and development expenses | |||||
Operating expenses | |||||
Share-based compensation | 6,874 | 8,851 | 8,986 | ||
All other [Member] | Sales and marketing expenses [Member] | |||||
Operating expenses | |||||
Share-based compensation | 631 | 605 | 107 | ||
All other [Member] | General and administrative expenses [Member] | |||||
Operating expenses | |||||
Share-based compensation | 5,252 | 8,738 | 12,369 | ||
All other [Member] | Live streaming | |||||
Net revenues | |||||
Total net revenues | 245,424 | 156,515 | 111,360 | ||
All other [Member] | Others [Member] | |||||
Net revenues | |||||
Total net revenues | 49,936 | 28,818 | 73,013 | ||
Elimination | |||||
Net revenues | |||||
Total net revenues | (67) | 0 | |||
Cost of revenues | 67 | 0 | |||
Gross profit | 0 | 0 | |||
Operating expenses | |||||
Research and development expenses | 0 | 0 | |||
Sales and marketing expenses | 0 | 0 | |||
General and administrative expenses | 0 | 0 | |||
Total operating expenses | 0 | 0 | |||
Gain on disposal of business | 0 | ||||
Other income | 0 | 0 | |||
Operating income (loss) | 0 | 0 | |||
Interest expense | 2,453 | 4,811 | 4,440 | ||
Interest income and investment income | (2,453) | (4,811) | $ (4,440) | ||
Foreign currency exchange (losses) gains, net | 0 | 0 | |||
Gain on disposal and deemed disposal of investments | 0 | ||||
Loss on disposal and deemed disposal of investments | 0 | ||||
Loss on fair value changes of investment | 0 | 0 | |||
(Loss) gain on extinguishment of debt and derivative | 0 | 0 | |||
Other non-operating expenses | 0 | 0 | |||
Income (loss) before income tax expenses | 0 | 0 | |||
Income tax (expenses) benefits | 0 | 0 | |||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | 0 | 0 | |||
Share of income (loss) in equity method investments, net of income taxes | 0 | 0 | |||
Net income (loss) from continuing operations | 0 | 0 | |||
Elimination | Live streaming | |||||
Net revenues | |||||
Total net revenues | 0 | 0 | |||
Elimination | Others [Member] | |||||
Net revenues | |||||
Total net revenues | $ (67) | $ 0 | |||
[1] | Share-based compensation was allocated in cost of revenues and operating expenses as follows |
Segment Reporting - Property an
Segment Reporting - Property and equipment for the company's geographic operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PRC | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 481,770 | $ 362,963 | $ 297,469 |
Property and equipment, net | 282,955 | 246,325 | |
Developed countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 872,974 | 612,679 | 207,016 |
Middle East | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 621,775 | 475,662 | 182,630 |
Southeast Asia and others | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 642,532 | 466,840 | $ 213,587 |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 50,289 | 134,170 | |
Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 32,148 | $ 21,166 |