Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36427 |
Entity Registrant Name | Cheetah Mobile Inc. |
Entity Central Index Key | 0001597835 |
Entity Address, Address Line One | Building No. 8 |
Entity Address, Address Line Two | Hui Tong Times Square |
Entity Address, City or Town | Beijing |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Current Fiscal Year End Date | --12-31 |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Accounting Standard | U.S. GAAP |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 435,084,177 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.000025 per share |
No Trading Symbol Flag | true |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 957,985,982 |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Trading Symbol | CMCM |
Title of 12(b) Security | American depositary shares, each representing ten Class A ordinary shares |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 983,004 | $ 141,200 | ¥ 2,783,843 |
Restricted cash | 2,638 | 379 | 6,133 |
Short-term investments | 1,369,118 | 196,661 | 930,610 |
Accounts receivable (net of allowance for doubtful accounts of RMB83,991 and RMB109,315 (US$15,702) as of December 31, 2018 and 2019, respectively) | 469,276 | 67,407 | 655,261 |
Prepayments and other current assets | 936,109 | 134,464 | 1,064,714 |
Due from related parties | 233,255 | 33,505 | 126,990 |
Total current assets | 3,993,400 | 573,616 | 5,567,551 |
Non-current assets | |||
Property and equipment, net | 103,397 | 14,852 | 63,919 |
Operating lease right-of-use assets | 183,563 | 26,367 | |
Intangible assets, net | 44,476 | 6,389 | 48,421 |
Goodwill | 617,837 | ||
Long-term investments | 2,516,724 | 361,504 | 1,849,043 |
Due from related parties | 25,533 | 3,668 | 21,139 |
Deferred tax assets | 31,951 | 4,589 | 88,896 |
Other non-current assets | 112,700 | 16,188 | 35,830 |
Total non-current assets | 3,018,344 | 433,557 | 2,725,085 |
Total assets | 7,011,744 | 1,007,173 | 8,292,636 |
Current liabilities (including current liabilities of the VIEs and a VIE's subsidiaries without recourse to the Company amounting to RMB107,139 and RMB132,547 (US$19,040) as of December 31, 2018 and 2019, respectively) (Note 1) | |||
Accounts payable | 87,524 | 12,571 | 171,055 |
Accrued expenses and other current liabilities | 1,504,728 | 216,141 | 1,514,642 |
Due to related parties | 92,210 | 13,245 | 37,298 |
Income tax payable | 60,657 | 8,713 | 112,770 |
Total current liabilities | 1,745,119 | 250,670 | 1,835,765 |
Non-current liabilities (including non-current liabilities of the VIEs and a VIE's subsidiaries without recourse to the Company amounting to RMB6,414 and RMB35,786 (US$5,140) as of December 31, 2018 and 2019, respectively) (Note 1) | |||
Deferred tax liabilities | 82,847 | 11,900 | 110,291 |
Other non-current liabilities | 189,231 | 27,182 | 64,185 |
Total non-current liabilities | 272,078 | 39,082 | 174,476 |
Total liabilities | 2,017,197 | 289,752 | 2,010,241 |
Redeemable noncontrolling interests | 687,847 | ||
Shareholders' equity | |||
Treasury stock (45,273,040 and nil shares as of December 31, 2018 and 2019, respectively) | (221,932) | ||
Additional paid-in capital | 2,649,342 | 380,554 | 2,742,893 |
Retained earnings | 1,944,938 | 279,373 | 2,705,970 |
Accumulated other comprehensive income | 337,773 | 48,518 | 249,304 |
Total Cheetah Mobile Inc. shareholders' equity | 4,932,278 | 708,477 | 5,476,465 |
Noncontrolling interests | 62,269 | 8,944 | 118,083 |
Total equity | 4,994,547 | 717,421 | 5,594,548 |
Total liabilities, mezzanine equity and equity. | 7,011,744 | 1,007,173 | 8,292,636 |
Common Class A [Member] | |||
Shareholders' equity | |||
Ordinary shares | 69 | 11 | 74 |
Total equity | 69 | 11 | 74 |
Common Class B [Member] | |||
Shareholders' equity | |||
Ordinary shares | 156 | 21 | 156 |
Total equity | ¥ 156 | $ 21 | ¥ 156 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares |
Allowance for doubtful accounts | ¥ 109,315 | $ 15,702 | ¥ 83,991 |
Current liabilities of the VIEs and VIE's subsidiaries without recourse to the Company | 1,745,119 | 250,670 | 1,835,765 |
Non-current liabilities of the VIEs and VIE's subsidiaries without recourse to the Company | ¥ 272,078 | $ 39,082 | ¥ 174,476 |
Treasury stock, shares | 45,273,040 | ||
Variable Interest Entity Primary Beneficiary Aggregated Disclosure Non-recourse [Member] | |||
Current liabilities of the VIEs and VIE's subsidiaries without recourse to the Company | ¥ 132,547 | $ 19,040 | ¥ 107,139 |
Non-current liabilities of the VIEs and VIE's subsidiaries without recourse to the Company | ¥ 35,786 | $ 5,140 | ¥ 6,414 |
Common Class A [Member] | |||
Ordinary shares, par value | $ / shares | $ 0.000025 | ||
Ordinary shares, shares authorized | 7,600,000,000 | 7,600,000,000 | 7,600,000,000 |
Ordinary shares, shares issued | 435,084,177 | 435,084,177 | 475,357,217 |
Ordinary shares, shares outstanding | 431,985,016 | 431,985,016 | 419,253,027 |
Common Class B [Member] | |||
Ordinary shares, par value | $ / shares | $ 0.000025 | ||
Ordinary shares, shares authorized | 1,400,000,000 | 1,400,000,000 | 1,400,000,000 |
Ordinary shares, shares issued | 957,985,982 | 957,985,982 | 957,985,982 |
Ordinary shares, shares outstanding | 946,017,565 | 946,017,565 | 946,017,565 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Revenues (a) | ||||
Total Revenues | ¥ 4,981,705 | ¥ 4,974,757 | ||
Total Revenues | ¥ 3,587,695 | $ 515,340 | ||
Cost of revenues (a) | (1,241,932) | (178,392) | (1,540,633) | (1,780,089) |
Gross profit | 2,345,763 | 336,948 | 3,441,072 | 3,194,668 |
Operating income and expenses (a) | ||||
Research and development | (787,329) | (113,093) | (668,918) | (684,863) |
Selling and marketing | (1,558,315) | (223,838) | (1,910,044) | (1,656,505) |
General and administrative | (587,457) | (84,383) | (430,826) | (407,410) |
Impairment of goodwill | (545,665) | (78,380) | ||
Other operating income, net | 22,091 | 3,173 | 35,938 | 990 |
Total operating expenses | (3,456,675) | (496,521) | (2,973,850) | (2,747,788) |
Operating profit (loss) | (1,110,912) | (159,573) | 467,222 | 446,880 |
Other income (expenses) | ||||
Interest income, net | 110,010 | 15,802 | 87,716 | 22,603 |
Foreign exchange (losses) gains, net | 49 | 7 | 13,821 | (15,224) |
Other income, net | 635,166 | 91,235 | 700,964 | 979,006 |
Income (Loss) before income taxes | (365,687) | (52,529) | 1,269,723 | 1,433,265 |
Income tax expenses | (7,904) | (1,135) | (117,000) | (57,602) |
Net income (loss) | (373,591) | (53,664) | 1,152,723 | 1,375,663 |
Less: net income (loss) attributable to noncontrolling interests | (59,614) | (8,563) | (14,186) | 27,469 |
Net income (loss) | ¥ (313,977) | $ (45,101) | ¥ 1,166,909 | ¥ 1,348,194 |
Earnings (loss) per share | ||||
Basic | (per share) | ¥ (0.2514) | $ (0.0361) | ¥ 0.8048 | ¥ 0.9573 |
Diluted | (per share) | (0.2514) | (0.0361) | 0.7839 | 0.9366 |
Earnings (loss) per ADS (1 ADS represent 10 Class A ordinary share) | ||||
Basic | (per share) | (2.5140) | (0.3611) | 8.0478 | 9.5728 |
Diluted | (per share) | ¥ (2.5140) | $ (0.3611) | ¥ 7.8393 | ¥ 9.3656 |
Weighted average number of shares used in computation of ordinary shares: | ||||
Basic | shares | 1,369,041,418 | 1,369,041,418 | 1,403,089,609 | 1,394,303,326 |
Diluted | shares | 1,369,041,418 | 1,369,041,418 | 1,440,414,849 | 1,425,154,838 |
Other comprehensive (loss) income, net of tax of nil | ||||
Foreign currency translation adjustments | ¥ 77,097 | $ 11,074 | ¥ 182,978 | ¥ (148,304) |
Unrealized (losses) gains on available-for-sale securities, net | 10,913 | 1,568 | (3,734) | (433) |
Other comprehensive (loss) income | 88,010 | 12,642 | 179,244 | (148,737) |
Total comprehensive income (loss) | (285,581) | (41,022) | 1,331,967 | 1,226,926 |
Less: total comprehensive income (loss) attributable to noncontrolling interests | (60,073) | (8,629) | (40) | 22,671 |
Total comprehensive income (loss) attributable to Cheetah Mobile Inc. | (225,508) | (32,393) | 1,332,007 | 1,204,255 |
Sales [Member] | ||||
Related party Transactions | ||||
Amount of transactions with related parties | 216,829 | 31,146 | 232,363 | 83,263 |
Cost of Sales [Member] | ||||
Related party Transactions | ||||
Amount of transactions with related parties | (113,937) | (16,366) | (76,056) | (89,658) |
Research and development | ||||
Related party Transactions | ||||
Amount of transactions with related parties | (14,775) | (2,122) | (1,568) | (6,828) |
Selling and Marketing Expense [Member] | ||||
Related party Transactions | ||||
Amount of transactions with related parties | (7,871) | (1,131) | (18,710) | (70,272) |
General and Administrative Expense [Member] | ||||
Related party Transactions | ||||
Amount of transactions with related parties | (5,148) | (740) | (4,858) | (4,005) |
Utility Products and Related Services [Member] | ||||
Revenues (a) | ||||
Total Revenues | 3,119,483 | 3,439,563 | ||
Total Revenues | 1,573,030 | 225,952 | ||
Mobile Entertainment [Member] | ||||
Revenues (a) | ||||
Total Revenues | 1,778,867 | 1,496,443 | ||
Total Revenues | 1,871,543 | 268,830 | ||
Al And Other Segments [Member] | ||||
Revenues (a) | ||||
Total Revenues | ¥ 83,355 | ¥ 38,751 | ||
Total Revenues | ¥ 143,122 | $ 20,558 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) Unit_pure in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Conversion ratio, ADS to Class A ordinary share | 10 | 10 | 10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ (373,591) | $ (53,664) | ¥ 1,152,723 | ¥ 1,375,663 |
Adjustments to reconcile net income (loss) to net cash from operating activities | ||||
Depreciation of property and equipment | 37,382 | 5,370 | 40,244 | 45,156 |
Amortization of intangible assets | 28,086 | 4,034 | 39,863 | 91,145 |
Non-cash operating lease expense | 66,609 | 9,568 | ||
Provision for doubtful accounts | 134,281 | 19,288 | 17,619 | 5,675 |
Impairment of assets | 768,039 | 110,322 | 155,301 | 313,888 |
Foreign currency exchange losses (gains) | 2,074 | 298 | (19,979) | 10,641 |
(Gains) losses on disposal of property and equipment and intangible assets | 146 | 21 | (2,496) | (670) |
Gains on disposal/deemed disposal of subsidiaries/VIE's subsidiaries | (840,589) | (120,742) | (193,680) | (232,673) |
Gains on disposal/deemed disposal of investments | (300,211) | (1,012,086) | ||
Loss on disposal of put options | 170 | 24 | ||
Settlement and changes in fair value of contingent consideration | 9,014 | |||
Changes in fair value of financial assets | 35,265 | 5,066 | (344,333) | (12,959) |
(Gains) losses from equity method investments | (7,594) | (1,091) | 384 | (495) |
Gains on settlement of consideration of business combination | (3,383) | |||
Deferred income tax (benefits) expenses | 5,981 | 859 | 8,065 | (25,306) |
Share-based compensation expenses | 127,440 | 18,306 | 85,118 | 73,316 |
Changes in operating assets and liabilities | ||||
Accounts receivable | 163,370 | 23,467 | (25,302) | (63,517) |
Prepayments and other current assets | (198,076) | (28,452) | (264,815) | (179,286) |
Due from related parties | (33,156) | (4,763) | (59,198) | (15,884) |
Other non-current assets | (83,138) | (11,942) | (4,951) | (4,042) |
Accounts payable | (14,468) | (2,078) | (3,742) | (10,346) |
Accrued expenses and other current liabilities | 3,400 | 488 | 15,540 | 189,875 |
Operating lease liabilities | (71,266) | (10,237) | ||
Due to related parties | 59,913 | 8,606 | (29,582) | 11,307 |
Income tax payable | (53,121) | (7,630) | 66,415 | 39,353 |
Other non-current liabilities | 3,299 | 474 | 12,607 | 21,202 |
Net cash provided by (used in) operating activities | (239,544) | (34,408) | 345,590 | 625,588 |
Cash flows from investing activities | ||||
Purchases of property, plant and equipment and intangible assets | (102,173) | (14,676) | (65,403) | (25,890) |
Purchase of long-term investments | (494,695) | (71,059) | (529,450) | (384,635) |
Purchase of put option | (2,380) | (342) | (1,200) | |
Purchase of short-term investments | (3,508,101) | (503,907) | (2,492,046) | (2,000,669) |
Proceeds from maturity of short-term investments | 3,266,900 | 469,261 | 3,049,145 | 940,826 |
Acquisition of business, net of cash acquired | (28,443) | (4,086) | (77,392) | |
Return of long-term investment investees | 1,030 | 148 | 58,741 | |
Proceeds (cash-out) from disposal of subsidiaries/VIE's subsidiaries, net of cash acquired (disposed) | (233,446) | (33,532) | 71,516 | 152,653 |
Proceeds from disposal of property and equipment and intangible assets | 1,936 | 278 | 14,290 | 1,426 |
Proceeds and advance from disposal of long-term investments | 578,284 | 1,136,544 | ||
Loans to related parties | (173,703) | (24,951) | (73,081) | (108,671) |
Loans to third parties | (24,013) | (3,449) | (70,080) | (34,097) |
Repayment of loans from related parties | 186,862 | 26,841 | 33,907 | 109,671 |
Repayment of loans from third parties | 25,000 | 3,591 | 22,754 | |
Net cash (used in) provided by investing activities | (1,085,226) | (155,883) | 538,636 | (231,493) |
Cash flows from financing activities | ||||
Repayment for bank loans | (329,145) | (138,656) | ||
Proceeds and advance from share-based awards | 17,000 | 2,442 | 21,234 | 43,688 |
Settlement of contingent consideration | (25,777) | |||
Share repurchase | (175) | (25) | (221,749) | |
Capital contribution from noncontrolling shareholders | 172 | 11,905 | ||
Payment of withholding tax for dividend to noncontrolling shareholders | (2,700) | |||
Payment of dividend to noncontrolling shareholders | (1,298) | (186) | (17,023) | |
Payment of dividend to Cheetah Mobile Inc. shareholders | (500,597) | (71,906) | ||
Proceeds from issuance of redeemable noncontrolling interests | 635,795 | |||
Purchase of shares from noncontrolling shareholders | (16,189) | |||
Net cash provided by (used in) financing activities | (485,070) | (69,675) | (546,511) | 508,066 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 5,506 | 792 | 44,624 | (73,275) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,804,334) | (259,174) | 382,339 | 828,886 |
Cash, cash equivalents and restricted cash at beginning of year | 2,789,976 | 400,753 | 2,407,637 | 1,578,751 |
Cash, cash equivalents and restricted cash at end of year | 985,642 | 141,579 | 2,789,976 | 2,407,637 |
Supplemental disclosures | ||||
Cash payments for income taxes | (45,753) | (6,572) | (38,217) | (7,695) |
Cash payments for interest expenses | (2,956) | (11,988) | ||
Cash payments for operating leases | (70,284) | (10,096) | ||
Non-cash investing and financing activities: | ||||
Acquisition of property and equipment and intangible assets included in accrued expenses and other current liabilities | 7,087 | 1,018 | 8,725 | 30,530 |
Disposal of subsidiaries included in prepayments and other current assets | ¥ 33,084 | 93,071 | ||
Disposal of investments included in prepayments and other current assets | 47,818 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 24,079 | $ 3,459 | ||
Non-cash acquisition of other long-term investments | 329,710 | |||
Non-cash acquisition of business | ¥ 6,944 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Class A [Member]CNY (¥)shares | Common Class A [Member]USD ($)shares | Common Class B [Member]CNY (¥)shares | Common Class B [Member]USD ($)shares | Additional Paid-in Capital [Member]CNY (¥) | Additional Paid-in Capital [Member]USD ($) | Treasury Stock [Member]CNY (¥) | AOCI Attributable to Parent [Member]CNY (¥) | AOCI Attributable to Parent [Member]USD ($) | Retained Earnings [Member]CNY (¥) | Retained Earnings [Member]USD ($) | Parent [Member]CNY (¥) | Parent [Member]USD ($) | Noncontrolling Interest [Member]CNY (¥) | Noncontrolling Interest [Member]USD ($) |
Balance at Dec. 31, 2016 | ¥ 3,201,178 | ¥ 65 | ¥ 165 | ¥ 2,725,675 | ¥ (178,991) | ¥ 228,145 | ¥ 237,293 | ¥ 3,012,352 | ¥ 188,826 | ||||||||
Balance (in shares) at Dec. 31, 2016 | shares | 406,290,853 | 406,290,853 | 1,003,326,973 | 1,003,326,973 | |||||||||||||
Net income (loss) | 1,375,663 | 1,348,194 | 1,348,194 | 27,469 | |||||||||||||
Conversion of Class B ordinary shares to Class A ordinary shares by shareholders | ¥ 2 | ¥ (2) | |||||||||||||||
Conversion of Class B ordinary shares to Class A ordinary shares by shareholders,shares | shares | 13,749,910 | 13,749,910 | (13,749,910) | (13,749,910) | |||||||||||||
Share-based compensation | 73,289 | 73,289 | 73,289 | ||||||||||||||
Exercise and vesting of share-based awards | 26,547 | ¥ 2 | ¥ 1 | 26,544 | 26,547 | ||||||||||||
Exercise and vesting of share-based awards,shares | shares | 14,673,174 | 14,673,174 | 3,128,262 | 3,128,262 | |||||||||||||
Other comprehensive income (loss) | (148,737) | (143,939) | (143,939) | (4,798) | |||||||||||||
Share of reserves of an equity investee | 436 | 436 | 436 | ||||||||||||||
Accretion of redeemable noncontrolling interests | (13,451) | (13,451) | (13,451) | ||||||||||||||
Capital contribution from noncontrolling shareholders | 9,963 | 4,198 | 4,198 | 5,765 | |||||||||||||
Share purchase from a subsidiary's noncontrolling interest shareholder | (226) | (226) | (226) | ||||||||||||||
Noncontrolling interest in connection with business acquisitions (Note 3) | 13,167 | 13,167 | |||||||||||||||
Cancelation of treasury stock | ¥ (4) | (178,987) | 178,991 | ||||||||||||||
Cancellation of treasury stock, shares | shares | (25,368,080) | (25,368,080) | |||||||||||||||
Adoption of ASU 201609 | (6,886) | 6,886 | |||||||||||||||
Dividend declared by a consolidated subsidiary to noncontrolling interests | (17,826) | (17,826) | |||||||||||||||
Repurchase of share-based awards from a noncontrolling shareholder | (14,039) | (14,039) | (14,039) | ||||||||||||||
Balance at Dec. 31, 2017 | 4,505,964 | ¥ 65 | ¥ 164 | 2,644,043 | 84,206 | 1,564,883 | 4,293,361 | 212,603 | |||||||||
Balance (in shares) at Dec. 31, 2017 | shares | 409,345,857 | 409,345,857 | 992,705,325 | 992,705,325 | |||||||||||||
Net income (loss) | 1,152,723 | 1,166,909 | 1,166,909 | (14,186) | |||||||||||||
Conversion of Class B ordinary shares to Class A ordinary shares by shareholders | ¥ 8 | ¥ (8) | |||||||||||||||
Conversion of Class B ordinary shares to Class A ordinary shares by shareholders,shares | shares | 48,412,760 | 48,412,760 | (48,412,760) | (48,412,760) | |||||||||||||
Share-based compensation | 85,231 | 84,747 | 84,747 | 484 | |||||||||||||
Exercise and vesting of share-based awards | 12,036 | ¥ 1 | 12,035 | 12,036 | |||||||||||||
Exercise and vesting of share-based awards,shares | shares | 6,767,450 | 6,767,450 | 1,725,000 | 1,725,000 | |||||||||||||
Other comprehensive income (loss) | 179,244 | 165,098 | 165,098 | 14,146 | |||||||||||||
Share of reserves of an equity investee | 180 | 180 | 180 | ||||||||||||||
Accretion of redeemable noncontrolling interests | (38,601) | (37,714) | (37,714) | (887) | |||||||||||||
Capital contribution from noncontrolling shareholders | 3,129 | 3,129 | |||||||||||||||
Adoption of ASC 606 | 13,067 | 11,892 | 11,892 | 1,175 | |||||||||||||
Repurchase of common stock (Note 21) | (221,932) | (221,932) | (221,932) | ||||||||||||||
Disposal of a subsidiary | (75,964) | (75,964) | |||||||||||||||
Dividend declared by a consolidated subsidiary to noncontrolling interests | (20,529) | (20,529) | |||||||||||||||
Change in equity interest of a subsidiary | 1,888 | 1,888 | (1,888) | ||||||||||||||
Balance at Dec. 31, 2018 | 5,594,548 | ¥ 74 | ¥ 156 | 2,742,893 | (221,932) | 249,304 | 2,705,970 | 5,476,465 | 118,083 | ||||||||
Balance (in shares) at Dec. 31, 2018 | shares | 464,526,067 | 464,526,067 | 946,017,565 | 946,017,565 | |||||||||||||
Net income (loss) | (373,591) | $ (53,664) | (313,977) | (313,977) | (59,614) | ||||||||||||
Share-based compensation | 128,011 | 126,451 | 126,451 | 1,560 | |||||||||||||
Exercise and vesting of share-based awards | 6,080 | ¥ 2 | 6,078 | 6,080 | |||||||||||||
Exercise and vesting of share-based awards,shares | shares | 12,731,989 | 12,731,989 | |||||||||||||||
Other comprehensive income (loss) | 88,010 | 12,642 | 88,469 | 88,469 | (459) | ||||||||||||
Accretion of redeemable noncontrolling interests | (31,662) | (29,865) | (29,865) | (1,797) | |||||||||||||
Capital contribution from noncontrolling shareholders | 4,933 | 4,933 | |||||||||||||||
Cancelation of treasury stock | ¥ (7) | (221,925) | ¥ 221,932 | ||||||||||||||
Cancellation of treasury stock, shares | shares | (45,273,040) | (45,273,040) | |||||||||||||||
Disposal of a subsidiary | 88,913 | 82,946 | 82,946 | 5,967 | |||||||||||||
Dividend declared by a consolidated subsidiary to noncontrolling interests | (1,301) | (1,301) | (1,301) | ||||||||||||||
Dividend declared by the Company to Cheetah Mobile Inc. shareholders | (498,635) | (498,635) | (498,635) | ||||||||||||||
Change in equity interest of a subsidiary | (10,759) | (4,155) | (200) | (4,355) | (6,404) | ||||||||||||
Balance at Dec. 31, 2019 | ¥ 4,994,547 | $ 717,421 | ¥ 69 | $ 11 | ¥ 156 | $ 21 | ¥ 2,649,342 | $ 380,554 | ¥ 337,773 | $ 48,518 | ¥ 1,944,938 | $ 279,373 | ¥ 4,932,278 | $ 708,477 | ¥ 62,269 | $ 8,944 | |
Balance (in shares) at Dec. 31, 2019 | shares | 431,985,016 | 431,985,016 | 946,017,565 | 946,017,565 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Cheetah Mobile Inc. (formerly known as Kingsoft Internet Security Software Holdings Limited) (the “Company”) is a limited company incorporated in the Cayman Islands under the laws of Cayman Islands on July 30, 2009. The Company and its consolidated subsidiaries and variable interest entities (“VIEs”) (collectively referred to the “Group”) are principally engaged in the provision of utility products and related services, mobile entertainment services and artificial intelligence (“AI”) and other services. The Company conducts its primary business operations through its subsidiaries, VIEs and subsidiary of VIEs. In 2009, Kingsoft Corporation Limited (“Kingsoft”), the former holding company of the Company, undertook a corporate reorganization to establish the Group, which started to specialize in utility products and related services on a stand-alone basis with separate management oversight distinct from Kingsoft. Subsequent to the reorganization in 2009, all revenues and costs generated by the utility products and related services, are reflected in the consolidated financial statements of the Group. On October 2, 2017, Kingsoft have approved the delegation of %, which increased to 39.9% as of March 31, 2020, voting power of the Company held by Kingsoft to Mr. Sheng Fu, chief executive officer and director of the Company (“Mr. Fu”), effective October 1, 2017. The Company is no longer consolidated by Kingsoft and became a significant equity method investee of Kingsoft thereafter. Details of the Company’s principal subsidiaries and VIEs as of December 31, 2019 are as follows: Company Date of incorporation/ registration Place of incorporation/ registration Percentage of ownership (i) Principal activities Princip al Cheetah Technology Corporation Limited (“Cheetah Technology”) August 26, 2009 Hong Kong 100% Investment holding, provision of utility products and related services, mobile entertainment services Beijing Kingsoft Internet Security Software Co., Ltd. (“Beijing Security”) November 30, 2009 The PRC 100% Provision of mobile entertainment services and research and development of online applications, sale of AI products Conew Network Technology (Beijing) Co., Ltd. (“Conew Network”) March 19, 2009 The PRC 100% Research and development of mobile applications and provision of utility products and related service Hongkong Zoom Interactive Network Marketing Technology Limited (“HK Zoom”) July 4, 2014 Hong Kong 100% Provision of utility products and related services Cheetah Information Technology Company Limited (“Cheetah Information”) March 9, 2015 Hong Kong 100% Investment holding Princip al Cheetah Mobile Singapore Pte. Ltd. (“Cheetah Mobile Singapore”) May 27, 2015 Singapore 100% Provision of utility products and related services and mobile entertainment services Cheetah Mobile Hong Kong Limited (“Cheetah Mobile Hong Kong”) February 24, 2016 Hong Kong 100% Investment holding Beijing Chibao Technology Co., Ltd. December 6, 2018 The PRC 82.5% Provision of mobile entertainment services Beijing Kingsoft Cheetah Technology Co., Ltd. April 30, 2015 The PRC 100% Provision of products and related services and mobile entertainment services Jingdezhen Jibao Information Service Co., August 10, 2017 The PRC 100% Provision of utility products and related services, sale of AI products Japan Kingsoft Inc. (“Kingsoft Japan”) March 9, 2005 Japan 41.9% Provision of utility products and related services Zhuhai Baoqu Technology Co., Ltd. July 18, 2018 The PRC 75.0% Provision of utility products and related services VIEs Beijing Conew Technology Development Co., Ltd. (“Beijing Conew”) December 22, 2005 The PRC Nil Dormant Beijing Cheetah Mobile Technology Co., Ltd. (“Beijing Mobile”) April 15, 2009 The PRC Nil Provision of utility products and related services, mobile entertainment services Beijing Cheetah Network Technology Co., Ltd. (“Beijing Network”) July 18, 2012 The PRC Nil Provision of utility products and related services, mobile entertainment services (i) Percentage of ownership is calculated on fully diluted basis. VIE arrangements Before December, 2019, in order to comply with the PRC laws and regulations which prohibit foreign control of companies involved in internet value-added business, the Group operates its website and conducts substantially the majority of its internet value-added services in the PRC through Beijing Mobile, Beijing Network, and Beijing Conew and other VIEs (collectively referred to as the “VIEs”) and its wholly-owned subsidiaries. Except for Beijing Conew, the registered capital of the VIEs was funded by Beijing Security and Conew Network (each or collectively referred to as the “Former Primary Beneficiaries”) through loans extended to the VIEs’ shareholders (the “Nominee Shareholders”), Sheng Fu and Kun Wang who are the Company’s director and/or employee, as well as Ms. Weiqin Qiu and Wei Liu. The effective control of the VIEs is held by the Former Primary Beneficiaries, through a series of contractual agreements (the “Contractual Agreements”). As a result of the Contractual Agreements, the Former Primary Beneficiaries have the power to direct the activity that most significantly impacts the economic performance of the VIEs and receive the economic benefits of the VIEs. The following is a summary of the Contractual Agreements amongst Beijing Security, as the Former Primary Beneficiary, Beijing Mobile, as the VIE and Beijing Mobile’s Nominee Shareholders before December 2019. Contractual Agreements entered with other VIEs, including but not limited to Beijing Network and Beijing Conew, are substantially similar: Exclusive technology development, support, and consulting agreements Pursuant to the exclusive technology development, support and consulting agreement entered into between the Former Primary Beneficiary and the VIE, the VIE engaged the Former Primary Beneficiary as its exclusive provider of management consulting services, technical development and support services in return for service fees of not less than 30% of the VIE’s pre-tax Loan agreements Pursuant to the loan agreements among the Former Primary Beneficiary, the Nominee Shareholders and the VIE, the Former Primary Beneficiary granted loans to the Nominee Shareholders for their sole purpose of contributing to the registered capital of the VIE or in certain cases directly to the VIE under the VIE arrangements. As of December 31, 2019, the aggregate amount of these loans was RMB16,800 (US$2,413). At the option of the Former Primary Beneficiary, repayment may be requested at any time, which may be in the form of transferring the VIE’s equity interest to the Former Primary Beneficiary or its designees. The Nominee Shareholders may offer to repay part or the entire loans at any time, to the extent permitted by PRC laws, in the form of transferring the VIE’s equity interest to the Former Primary Beneficiary or its designees. Exclusive equity option agreements Pursuant to the exclusive equity option agreement entered into among the Former Primary Beneficiary, the VIE and the Nominee Shareholders, the Former Primary Beneficiary was granted an exclusive and irrevocable option to purchase, or designate a third party to purchase, all or part of the equity interest of the VIE held by the Nominee Shareholders. Without the prior written consent of the Former Primary Beneficiary, the Nominee Shareholders shall not assign or transfer to any third party or create or cause any equity interest in whatsoever form to be created on, all or any part of the equity interest held in the VIE. In addition, dividends and any form of distributions are not permitted without the prior consent of the Former Primary Beneficiary. The exercise consideration is equal to the minimum price permitted under the PRC laws and any amount in excess of the corresponding loan amount shall be refunded by the Nominee Shareholders to the Former Primary Beneficiary or the Former Primary Beneficiary may deduct the excess amount upon payment of consideration. The Former Primary Beneficiary or its designee(s) may exercise such option at any time until it has acquired all the equity interest of the VIE. The agreement will remain effective until all the equity interests held by the Nominee Shareholders have been lawfully transferred to the Former Primary Beneficiary or its designee(s) pursuant to the terms of the agreement. Equity pledge agreements Pursuant to the equity pledge agreement entered into among the Nominee Shareholders, the VIE and the Former Primary Beneficiary, the Nominee Shareholders pledged all of their equity interest in the VIE to the Former Primary Beneficiary as collateral for all of their payments due to the Former Primary Beneficiary and to secure their obligations under the above agreements. Without the prior written consent of the Former Primary Beneficiary, the Nominee Shareholders may not assign or transfer to any third party or create or cause any equity interest in whatsoever form to be created on, all or any part of the equity interest they holds in the VIE. The Former Primary Beneficiary is entitled to transfer or assign in full, or in part, the equity interest pledged. In the event of default, the Former Primary Beneficiary as the pledgee, has first priority to be compensated through the sale or auction of the pledged equity interest. The Nominee Shareholders agree to waive their dividend rights in relation to all of the pledged equity interest until such pledge has been lawfully discharged. The equity pledge agreement will remain effective until all the obligations under these agreements have been satisfied in full or all of the guaranteed liabilities have been repaid. Shareholder voting proxy agreements Pursuant to the shareholder voting proxy agreement signed among the Nominee Shareholders, the VIE and the Former Primary Beneficiary, each of the Nominee Shareholders irrevocably nominates, appoints and constitutes any person designated by the Primary Former Beneficiary as its attorney-in-fact Business operation agreements Pursuant to the business operations agreement entered into among the Nominee Shareholders, the VIE and the Former Primary Beneficiary, the Nominee Shareholders must appoint candidates designated by the Former Primary Beneficiary as the members of the board of the VIE and the Former Primary Beneficiary has the right to appoint senior executives of the VIE. In addition, the VIE agrees not to engage in any transaction that may materially affect its assets, obligations, rights or operation without the prior written consent of the Former Primary Beneficiary. The Nominee Shareholders also agree to unconditionally pay or transfer to the Former Primary Beneficiary any bonus, dividends or any other profits or interest (in whatever form) that they are entitled to as shareholders of the VIE, and waive any consideration connected therewith. The agreement has a term of ten years, unless otherwise terminated by the Former Primary Beneficiary. Neither the VIE nor the Nominee Shareholders may terminate this agreement. Spousal consent letters The spouse of certain shareholder of the VIE has executed spousal consent letter. Pursuant to such letter, the spouses of certain shareholder of the VIE acknowledged that certain equity interest in the VIE held by and registered in the name of her spouse will be disposed pursuant to relevant arrangements under the shareholder voting proxy agreement, the exclusive equity option agreement, the equity pledge agreement and the loan agreement. This spouse undertakes not to take any action to interfere with the disposition of such equity interest, including, without limitation, claiming that such equity interest constitutes communal marital property. On January 17, 2014, the Contractual Agreements were supplemented with financial support undertaking letters executed by the Former Primary Beneficiary to memorialize the Former Primary Beneficiary’s commitment to the VIEs and the commitment shall be retrospectively effective from the date the other contractual agreements were fully executed. Pursuant to the financial support undertaking letter, the Former Primary Beneficiary commits to provide unlimited financial support to the VIE to support their operations whether or not the VIE incurs any losses, and not request for repayment if the VIE is unable to do so. Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between the Former Primary Beneficiaries and the VIEs through the irrevocable shareholder voting proxy agreements, whereby the Nominee Shareholders effectively assigned all of the voting rights underlying their equity interest in the VIEs to the Former Primary Beneficiaries. Furthermore, pursuant to the exclusive equity option agreements, which include a substantive kick-out Normally, the shareholders of the VIEs have the right to elect and terminate the executive directors of the VIEs, approve the annual budget, financial statements and significant investing and financing activities of the VIEs. However, pursuant to the shareholder voting proxy agreements, the shareholders of the VIEs have assigned all of their voting rights underlying the equity interest in the VIEs to any person(s) nominated, appointed or designated by the Former Primary Beneficiaries. Senior management of the Company, all employees of the Former Primary Beneficiaries, are generally responsible for the review and approval of sales contracts, credit approval policies, pricing policies, significant marketing promotions, product development, research and development, bandwidth and traffic expenditures, as well as the appointments and terminations of personnel. Therefore, the Former Primary Beneficiaries have the power to direct the activities of the VIEs that most significantly impact their economic performance. Thus, Beijing Security and Conew Network are considered as the Former primary beneficiaries of the VIEs. As a result of the above, the Company, through the Former Primary Beneficiaries, consolidate the VIEs in accordance with SEC Regulation SX-3A-02 810-10 810-10”), Consolidation: Overall In December 2019, the contractual agreements for certain VIEs, including Beijing Conew, Beijing Mobile and Beijing Network, were amended to mainly include the following terms: a. Exclusive equity option agreements The Company (i) has an exclusive option to purchase, when and to the extent permitted under PRC laws, all or part of the equity interests in the VIEs or all or part of the assets held by the VIEs, (ii) has an exclusive right to cause the Nominee Shareholders to transfer their equity interests in the VIE to the Company or any designated third party and (iii) may provide financial support to the VIEs (only to the extent permitted under PRC laws) when the VIEs become in need of any form of reasonable financial support in the normal operation of business. The Company will not request repayment of any outstanding loans or borrowings from the VIEs if the VIEs do not have sufficient funds or are unable to repay such loans or borrowings. b. Proxy agreements and power of attorney The Nominee Shareholders of the VIEs agreed to irrevocably entrust all the rights to exercise their voting power and any other rights as shareholders of the VIEs to the Company or any third party designated by the Company. The Company, or any designated third party, as the Entrustee, shall have the right to exercise all the rights as shareholders of the VIEs in its sole discretion, and none of the Nominee Shareholders shall exercise any rights as shareholders of the VIEs without the prior written consent of the Company. The Nominee Shareholders of the VIEs have each executed an irrevocable power of attorney to appoint the Company as their attorney-in-fact As a result, the power and the rights pursuant to the Proxy Agreements and Power of Attorney have since been effectively reassigned from the Former Primary Beneficiaries to the Company which has the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance. The Company is also obligated to absorb the expected losses of the VIE through the financial support as described above. Therefore, the Company has replaced the Former Primary Beneficiaries as the primary beneficiary of the VIEs, including but not limited to Beijing Conew, Beijing Mobile and Beijing Network since December 2019. As the VIEs were subject to indirect control by the Company through its PRC subsidiaries immediately before and direct control immediately after the contractual agreements were amended, the change of the primary beneficiary of the VIEs was accounted for as a common control transaction based on the carrying amount of the net assets transferred. The Company, in consultation with its PRC legal counsel, believes that (i) the ownership structure of the Group, including its subsidiaries in the PRC and VIEs does not result in any violation of all existing PRC laws and regulations; (ii) each of the Contractual Agreements amongst the primary beneficiary, the VIEs and the Nominee Shareholders of the VIEs governed by PRC laws, are legal, valid and binding, enforceable against such parties, and will not result in any violation of PRC laws or regulations currently in effect; and (iii) each of the Company’s PRC subsidiaries, VIEs and subsidiary of VIEs have the necessary corporate power and authority to conduct its business as described in its business scope under its business license, which is in full force and effect. However, uncertainties in the PRC legal system could cause the relevant regulatory authorities to find the current Contractual Agreements and businesses to be in violation of any existing or future PRC laws or regulations. If the Company, the Company’s PRC subsidiaries or any of its current or future VIEs are found in violation of any existing or future laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, including levying fines, confiscating the income of the Company’s PRC subsidiaries, and the VIEs, revoking the business licenses or operating licenses of the Company’s PRC subsidiaries, and VIEs, shutting down the Group’s servers or blocking the Group’s websites, discontinuing or placing restrictions or onerous conditions on the Group’s operations, requiring the Group to undergo a costly and disruptive restructuring, restricting the Group’s rights to use the proceeds from this offering to finance the Group’s business and operations in PRC, or enforcement actions that could be harmful to the Group’s business. Any of these actions could cause significant disruption to the Group’s business operations and severely damage the Group’s reputation, which would in turn materially and adversely affect the Group’s business and results of operations. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of VIEs or the right to receive their economic benefits, the Company would no longer be able to consolidate the VIEs. In addition, if the VIEs or the Nominee Shareholders fail to perform their obligations under the Contractual Agreements, the Group may have to incur substantial costs and expend resources to enforce the Primary Beneficiary’s rights under the contracts. The Group may have to rely on legal remedies under PRC laws, including seeking specific performance or injunctive relief and claiming damages, which may not be effective. All of these Contractual Agreements are governed by PRC laws and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC laws and any disputes would be resolved in accordance with PRC legal procedures. The legal system in PRC is not as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit the Group’s ability to enforce these contractual arrangements. Under PRC laws, rulings by arbitrators are final, parties cannot appeal the arbitration results in courts, and prevailing parties may only enforce the arbitration awards in PRC courts through arbitration award recognition proceedings, which would incur additional expenses and delay. In the event the Group is unable to enforce these Contractual Agreements, the Company may not be able to exert effective control over its VIEs, and the Group’s ability to conduct its business may be negatively affected. The assets and liabilities of the VIEs are as follows: As of December 31, 2018 2019 RMB RMB US$ Cash and cash equivalents 49,623 42,809 6,149 Restricted cash 526 476 68 Short-term investments — 4,000 575 Accounts receivable, net 25,346 107,199 15,398 Prepayments and other current assets 49,739 74,384 10,685 Due from related parties 425,752 624,600 89,718 Total current assets 550,986 853,468 122,593 Property and equipment, net 12,753 9,393 1,349 Operating lease right-of-use assets — 37,141 5,335 Intangible assets, net 6,926 6,616 950 Goodwill 962 — — Long-term investments 111,836 214,340 30,788 Other non-current assets 2,733 3,384 486 Deferred tax assets 9,250 9,474 1,361 Total non-current assets 144,460 280,348 40,269 Total assets 695,446 1,133,816 162,862 Accounts payable 11,777 10,642 1,529 Accrued expenses and other current liabilities 82,012 100,015 14,366 Due to related parties (i) 387,629 907,481 130,351 Income tax payable 1,945 1,587 228 Total current liabilities 483,363 1,019,725 146,474 Deferred tax liabilities 1,660 3,749 539 Due to related parties (i) 19,596 — — Other non-current liabilities 4,754 32,037 4,602 Total non-current liabilities 26,010 35,786 5,141 Total liabilities 509,373 1,055,511 151,615 (i) As of December 31, 2018, and 2019, the balances due to related parties of the VIEs mainly represented amounts due to subsidiaries of the Group of RMB395,820 and RMB887,178 (US$127,435) respectively, which were eliminated upon consolidation by the Company. The financial performance and cash flows of the VIEs are as follows: For the y r 2017 2018 2019 RMB RMB RMB US$ Revenues 369,247 508,576 586,404 84,232 Cost of revenues 232,500 319,297 335,912 48,251 Net income 22,327 33,805 88,559 12,721 Net cash (used in) provided by operating activities (30 ) (12,198 ) 62,401 8,963 Net cash provided by (used in) investing activitie s 23,853 (24,941 ) (69,386 ) (9,967 ) Net cash provided by financing activities — 19,500 — — Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 121 17 The revenue producing assets that are held by the VIEs primarily comprise of leasehold improvements, servers, licensed software, network equipment, acquired trade name and acquired domain name. Substantially all of such assets are recognized in the Group’s consolidated financial statements, except for certain Internet Content Provider Licenses, internally developed software, trademarks and patent applications which were not recorded in the Company’s consolidated balance sheets as they do not meet all the capitalization criteria. The VIEs also hire assembled work force on sales, research and development and operations whose costs are expensed as incurred. There was no pledge or collateralization of the VIEs’ assets. Creditors of the VIEs have no recourse to the general credit of the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). “Impairment of investments and convertible loans” and “Gain (loss) from equity method investments, net” in consolidated statements of comprehensive income (loss) have been reclassified to conform with the current year’s presentation to facilitate comparison. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and subsidiaries of VIEs. All significant intercompany transactions and balances between the Company, its subsidiaries, VIEs and subsidiaries of VIEs are eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties, VIEs and subsidiaries of VIEs are consolidated from the date on which control is transferred to the Company. On May 26, 2011, the board of directors of the Company approved and adopted a share award scheme (the “2011 Share Award Scheme”) in which selected employees of the Group are entitled to participate. The Group has set up a trust (the “Share Award Scheme Trust”) for the purpose of administering the 2011 Share Award Scheme and holding shares awarded to the employees before they vest and are transferred to the employees as instructed by employees. As the Group has the power to govern the financial and operating policies of the Share Award Scheme Trust and derives benefits from the contributions of the employees who have been awarded the shares of the Company through their continued employment with the Group, the Share Award Scheme Trust are included in the consolidated financial statements and any ungranted and unvested shares held by the Share Award Scheme Trust not transferred to grantees are not considered legally issued and outstanding ordinary shares of the Company. Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year. Management evaluates estimates, including those related to the standalone selling prices of performance obligation of revenue contracts, the allowance for doubtful accounts, weighted average unit price of virtual currencies of LiveMe, the average paying user lives of online games, the purchase price allocation and fair value of noncontrolling interests with respect to business combinations, useful lives of long-lived assets and intangible assets, impairment of long-lived assets, impairment of investments, impairment of intangible assets, impairment of goodwill, valuation allowance for deferred tax assets, uncertain tax positions, share-based compensation, fair values of investments, and loss contingencies, among others. Foreign currency translation and transactions The functional currency of the Company is the US$. The Company’s subsidiaries, VIEs and subsidiaries of VIEs determined their functional currency based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are remeasured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included as a component of “Foreign exchange gain (loss), net” in the consolidated statements of comprehensive income (loss). Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.9618 to US$1.00 on December 31, 2019 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. Business combinations and noncontrolling interests Except for business combination under common control, the Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations In a business combination achieved in stages, the Group remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. For the Company’s majority-owned subsidiaries and VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated statements of comprehensive income (loss) includes the net income (loss) attributable to noncontrolling interests. The cumulative results of operations attributable to noncontrolling interests are recorded as noncontrolling interests in the Group’s consolidated balance sheets. Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted to withdrawal and use. All highly liquid investments with original stated maturity of three months or less are classified as cash equivalents. Restricted cash Restricted cash consists primarily of the cash reserved in escrow accounts for the remaining payments in relation to business acquisition of RMB3,480 and nil as of December 31, 2018 and 2019, respectively, the cash pledged as collateral for a business credit card of RMB2,128 and RMB2,163 (US$311) as of December 31, 2018 and 2019, respectively, and the cash reserved in third-party trust account of RMB382 and RMB332 (US$48) as of December 31, 2018 and 2019, respectively. Accounts receivable and allowance for doubtful accounts Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Group generally does not require collateral from its customers. The Group maintains allowances for doubtful accounts for estimated losses resulting from the failure of customers to make payments on time. The Group reviews the accounts receivable on a periodic basis and makes specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Group considers many factors, including the customer’s payment history, its current credit-worthiness and current economic trends. Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value, and are recorded in “Prepayments and other current assets”. Cost of inventories is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventories to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs of inventories are recorded in cost of revenues in the consolidated statements of comprehensive income (loss). Derivative Instruments ASC topic 815 (“ASC 815”), Derivatives and Hedging Investments Short-term investments All highly liquid investments with original maturities of greater than three months, but less than 12 months, are classified as short-term investments. Investments that are expected to be realized in cash during the next 12 months are also included in short-term investments. Investment in debt securities The Group accounts for its investments in debt securities in accordance with ASC 320-10, Investments—Debt Securities: Overall “held-to-maturity”, “available-for-sale”, ASC 320-10. The debt securities that the Group has positive intent and ability to hold to maturity are classified as held-to-maturity held-to-maturity 320-10. more-likely-than-not Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Unrealized holding gains and losses for trading securities are included in earnings. Debt investments not classified as trading or as held-to-maturity available-for-sale Available-for-sale available-for-sale Investment in equity securities The Group accounts for its investments in common stock or in-substance 323-10, Investments—Equity Method and Joint Ventures: Overall Financial Instruments: Fair Value Option (“ASC 825”) . The Group applies the equity method of accounting that is consistent with ASC 323-10 323-10. The Group has elected the fair value option when it initially recognizes an equity method investment as the Group determined the fair value of this investment better represents the value of the underlying assets. Such election is irrevocable, and can be applied to financial assets on an individual basis at initial recognition. Any changes in fair value are recognized in earnings in the consolidated statements of comprehensive income (loss). Prior to adopting ASC 321, Investments—Equity Securities Investments-Other: Cost Method Investments The Group adopted ASC 321, Investments—Equity Securities Fair Value Measurements and Disclosures For equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in earnings equal to the difference between the carrying value and fair value. Fair value measurements of financial instruments Accounting guidance establishes 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. Accounting guidance establishes three levels of inputs that may be used to measure fair value. Financial instruments primarily consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, due from and due to related parties, other receivables, long-term investments, accounts payable and other current liabilities. The carrying amounts of these financial instruments, except for long-term investments approximate their fair values because of their generally short-term maturities. The Group, with the assistance of an independent third-party valuation firm, determined the estimated fair value of its equity investments using the alternative measurement and equity method investment with fair value option elected. Property and equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated useful life Electronic equipment 2-3 years Office equipment and fixtures 5 years Motor vehicles 4 years Leasehold improvements Lesser of term of the lease or the Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income (loss). All direct and indirect costs that are related to the construction of fixed assets and incurred before the assets are ready for their intended use are capitalized as construction in progress. Construction in progress is transferred to specific fixed assets items and depreciation of these assets commences when they are ready for their intended use. Goodwill The Group assesses goodwill for impairment in accordance with ASC 350, Intangibles—Goodwill and Other: Goodwill 350-20”), The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step 350-20. more-likely-than-not two-step two-step On disposal of a portion of reporting unit that constitutes a business, the attributable amount of goodwill is included in the determination of the amount of profit or loss on disposal. When the Group disposes of a business within the reporting unit, the amount of goodwill disposed is measured based on the relative fair value of the business disposed and the portion of the reporting unit retained. This relative fair value approach is not used when the business to be disposed was not integrated into the reporting unit after its acquisition, in which case the current carrying amount of the acquired goodwill should be included in the carrying amount of the business to be disposed. Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination were recognized initially at fair value at the date of acquisition. Intangible assets with finite useful lives are amortized using a straight-line method of amortization that reflects the estimated pattern in which the economic benefits of the intangible asset are to be consumed. The estimated useful life for the intangible assets is as follows: Estimated Customer relationship 2-6 years Trademarks 3-10 years Technology 1-10 years Online game licenses 1-5 years User base 1 year Domain names 1-10 years Platform 5 years If an intangible asset is determined to have an indefinite life, it should not be amortized until its useful life is determined to be no longer indefinite. As of December 31, 2018 and 2019, the Group did not have any intangible assets with an indefinite life. Impairment of long-lived assets and intangible assets The Group evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350-30, Intangibles—Goodwill and Other: General Intangibles Other than Goodwill Treasury stock Treasury stock represents ordinary shares repurchased by the Company that are no longer outstanding and are held by the Group. Treasury stock is accounted for under the cost method. Under this method, repurchase of ordinary shares was recorded as treasury stock at historical purchase price. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in paid-in Revenue recognition The Group adopted ASC 606, Revenue from Contracts with Customers Revenue Recognition Starting from January 1, 2018, value added taxes (“VAT”) was reclassified from cost of revenue to net against revenues in accordance with ASC 606. Other than the presentation of VAT, the impact from adopting ASC 606 was not material to the Group’s consolidated financial statements as of and for the year ended December 31, 2018. The Group generates its revenues primarily through utility products and related services, mobile entertainment, AI and others. The Group recognizes revenue when it has approval and commitment from the customer, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable . The following table presents the Company’s revenues disaggregated by revenue source: For the year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Revenues: Utility products and related services 3,439,563 3,119,483 1,573,030 225,952 Mobile entertainment Mobile game business 624,013 925,003 1,172,944 168,483 Content-driven products 872,430 853,864 698,599 100,347 AI and others 38,751 83,355 143,122 20,558 Total consolidated revenues 4,974,757 4,981,705 3,587,695 515,340 ( Online advertising Online advertising revenue is primarily derived from displaying advertising customer’s advertisements on the Group’s online platforms including duba.com and other websites, browsers, PC and mobile applications, and to a lesser extent, on third-party advertising publishers’ websites or mobile applications. The Group has three general pricing models for its advertising products: cost over a time period, cost for performance basis and cost per impression basis. For advertising contracts over a time period, the Group generally recognizes revenue ratably over time, because the customer simultaneously receives and consumes the benefits as the Group performs throughout a fixed contract term. For contracts that are charged on the cost for performance basis, the Group charges an agreed-upon fee to its customers determined based on the effectiveness of advertising links, which is typically measured by clicks, transactions, installations, user registrations, and other actions originating from the Group’s online platforms. Revenue is recognized at a point in time when there is an effective click, transaction, installations, user registrations, and other actions originating from the Group’s online platforms. For contracts that are charged on the cost per impression basis, the Group recognizes the revenue at a point in time when the impressions are delivered. For online advertising services arrangement involving third-party advertising publishers’ websites or mobile publications, the Group recognizes gross revenue the amount of fees received or receivable from customers as the Group has control over the advertising services before they are transferred to the customer, and therefore, the Company is not arranging for the advertising services to be provided by third parties on their internet properties. Revenue for online advertising services is recognized at a point in time when all the revenue recognition criteria are met. Payments made to the third-party advertising publishers or content providers are included in cost of revenues. Advertising agency services The Group provides advertising agency services by arranging advertisers to purchase various advertisement products from certain online networks. The Group receives from the online network performance-based commissions, which are determined based on a pre-specified pre-determined Internet security services The Group markets and distributes its off-the-shelf Other utility products related services Other utility products related services primarily comprise of the sale of office application software. Revenue for perpetual license is recognized at a point in time when control transfers to the customer, which generally occurs when products are made available to customers. (2) Mobile entertainment Mobile games The Group develops several popular mobile games and operates some games exclusively licensed from third-party developers, which attracted a massive user base and provide ample advertising revenue opportunities. Similar with monetization method for the mobile utility products, the Group derives advertising revenues by displaying advertisements on mobile games. Advertisers purchase advertising services directly from the Group or through third-party partnering mobile advertising platforms. Revenue is recognized at a point in time when an advertisement is displayed to users, while impressions are delivered. The Group sells both perpetual and consumable in-game in-game in-game in-game The Group tracks the in-game log-in Commission fees paid to distribution platforms and payment channels and the fees shared by the third-party game developers are recorded as cost of revenues. Online live broadcast services The Group creates and offers virtual items to be used by users on mobile live broadcast application “LiveMe”, which was operated and maintained by the Group. All “LiveMe” live video shows are available free of charge and fans can purchase virtual items on the platform with virtual currencies to support their favorite performers. The Group recognizes revenue from LiveMe on a gross basis as it has control over the fulfillment of providing mobile live broadcasts on the LiveMe platform, and records payments to the performers and third-party payment platforms as cost of revenues. When virtual currencies are converted into virtual items which are consumed simultaneously, performers receive a certain number of virtual diamonds as a result. When performers receive virtual diamonds, they have a choice to either cash out the virtual diamonds or convert them into virtual currencies and continue to consume the virtual currencies on the platform. Since the performers can convert the virtual items into cash and recharge into their account (if they do) or directly convert into virtual currencies, the Group believes that the conversion into virtual currencies is analogous to recharge by cash and revenue should be recognized when virtual currencies converted from virtual items are consumed. Proceeds received from users for the sales of virtual currencies are recorded as contract liability, representing prepayments received from users in the form of the Group’s virtual currency not yet converted into virtual items. Revenue recognized is based on the weighted average unit price of virtual currencies and the quantities of virtual currencies converted into virtual items. The weighted average unit price of virtual currencies is calculated on a monthly basis as the sum of the contract liability at the beginning of the month, proceeds received during the month and the cash value of the virtual diamonds converted into virtual currencies divided by the sum of the virtual currencies balance at the beginning of the month plus the quantity of virtual currencies generated during the month. The Group ceases to provide this service as Live.me was deconsolidated on September 30, 2019 (Note 3). (3) AI and others AI and other revenue primary comprise of the sale of AI hardware products and technical consulting services. The Group recognizes revenue generally at a point in time for the sale of AI hardware products when the products are delivered to customers. Technical consulting services are recognized over time because the customer simultaneously receives and consumes the benefits as the Group performs throughout a fixed term. (4) Other revenue recognition related policies For arrangements that include multiple performance obligations, the Group would evaluate all the performance obligations in the arrangement to determine whether each performance obligation is distinct in the context of contract. Consideration is allocated to each performance obligation based on its standalone selling price. If a promised good or service does not meet the criteria to be considered distinct in the context of contract, it is combined with other promised goods or services until a distinct bundle of goods or services exists. The Group provides sales incentives to customers which entitle them to receive reductions in the price. The Group accounts for these incentives granted to customers as variable consideration and records it as reduction of revenue. The amount of variable consideration is measured based on the most likely amount of incentives to be provided to customers. The Group believes that there will not be significant changes to its estimate of variable consideration. Deferred revenue The Group recognize s s , respectively. Cost of revenues Cost of revenues primarily consists of traffic acquisition cost, bandwidth and cloud service costs, content and channel costs associated with online live broadcast and mobile game, royalty fees, salaries and benefits, share-based compensation expenses, depreciation of equipment, amortization of intangible assets and cost of products sold. Selling and marketing expenses Selling and marketing expenses consist primarily of advertising and promotional expenses, staff costs, share-based compensation expenses and other related incidental expenses that are incurred directly to attract or retain users and customers for the Group’s websites, applications, software and online platforms. Advertising and promotional expenses are expensed when incurred. For the years ended December 31, 2017, 2018 and 2019, advertising and promotional expenses were RMB1,380,913, RMB1,646,378 and RMB1,305,720 (US$187,555), respectively. Research and development expenses Research and development consist primarily of employee costs and rental expenses related to personnel involved in the development and enhancement of the Group’s service offerings on its websites and mobile applications and amortization of intangible assets used in research and development. The Group expenses these costs as incurred, unless such costs qualify for capitalization as software development costs, including (i) preliminary project is completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) they result in significant additional functionality in the Group’s products. Capitalized software development costs were not material for all periods presented. Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments, for operating a business in their jurisdictions or conducting research and development projects pursuant to specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. For the government subsidies with non-operating Leases The Group adopted ASU No. 2016-02, Leases (Topic 842) 2016-02”) non-lease The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use Upon adoption, the Group recognized operating lease right-of-use assets of RMB216,540 (US$31,104) and total lease liabilities of RMB218,077 (US$31,325) for operating leases as of January 1, 2019. The impact of adopting ASU 2016-02 right-of-use RMB183,563 (US$26,367 ), and total operating lease liabilities of RMB180,104 (US$25,870), including current portion of RMB58,503 (US$8,404) recorded in “Accrued expense and other current liabilities” and non-current portion of RMB121,601 (US$17,466) recorded in “Other non-current liabilities”. Comprehensive income Comprehensive income is defined to include all changes in shareholders’ equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10, Comprehensive Income: Overall Income taxes The Group accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not The Group applies ASC 740, Accounting for Income Taxes non-current The Group’s estimated liability for unrecognized tax benefits and the related interest and penalties are periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements. Additionally, in future periods, changes in facts and circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which they occur. Share-based compensation The Group accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation: Overall In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or equity award. All grants of share-based awards to employees classified as equity awards are recognized in the financial statements based on their grant date fair values. The Group has elected to recognize share-based compensation using the accelerated method, for all share-based awards granted with graded vesting based on service conditions. The Group, with the assistance of an independent third-party valuation firm, determined the fair value of share-based awards granted to employees. Determining the fair value of share-based awards of the Group required complex and subjective judgments regarding its projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. A change in any of the terms or conditions of share options is accounted for as a modification of share-based awards. The Group calculates the incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested share-based awards, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested share-based award, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. Earnings (loss) per share Earnings (loss) per share are calculated in accordance with ASC 260-10, Earnings per Share: Overall two-class two-class Diluted earnings per share is calculated by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of the vesting of restricted shares and the exercising of restricted shares with an option feature using the treasury stock method. The computation of the dilutive earnings (loss) per share of Class A ordinary share assumes the conversion of Class B ordinary shares. Contingencies The Group records accruals for certain of its outstanding legal proceedings or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Group evaluates the developments in legal proceedings or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Group disclo |
Business Combinations and Decon
Business Combinations and Deconsolidations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations and Decosolidations | 3. BUSINESS COMBINATIONS AND DECONSOLIDATIONS Business combination in 2019 In June 2019, the Group completed a business combination, which the Group expected to enhance the Group’s expertise in hardware services. The total purchase consideration was RMB25,000 (US$3,591). The acquired entity was considered insignificant. The results of the acquired entity’s operations have been included in the Group’s consolidated financial statements since June 2019. Deconsolidation in 2019 In September 2019, Live.me Inc (“Live.me”) , d The deconsolidation of Live.me did not meet the definition of a discontinued operation in accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations 205-20”), owns 49.6% voting rights of Live.me. The remaining interests is accounted for equity investment using the fair value option in accordance with ASC 825 and Live.me will be considered a related party after deconsolidation. Deconsolidation in 2018 On October 8, 2018, the Group entered into an agreement to dispose its 24.8% equity interest of Hong Kong Youloft Technology Limited (“Youloft HK”) to a shareholder, for a cash consideration of RMB97,450. Subsequent to the transaction and the dilution of a newly established share award scheme of Youloft HK, the Group owned 21.9% equity interests of Youloft HK on a fully diluted basis. Subsequent to the transaction, the Group considered lost control over Youloft HK. As the Group’s remaining equity interests are not in-substance common stock and the investment does not have readily determinable fair value, the investment was accounted for at fair value using the measurement alternative. The Group recognized a total gain of RMB176,442 from the transaction in “Other income, net”. The deconsolidation of Youloft HK did not meet the definition of a discontinued operation in accordance with ASC 205-20, Business combination in 2017 In August 2017, the Group completed a business combination, which the Company expected to enhance the Group’s expertise in hardware services. The total purchase consideration was RMB41,522. The acquired entities were considered insignificant. The results of the acquired entity’s operations have been included in the Group’s consolidated financial statements. Deconsolidation in 2017 On December 5, 2017, the Group entered into an agreement with Bytedance Ltd. (“Bytedance”) a third-party mobile technique provider to dispose its 100% shareholding of News Republic for a total consideration of RMB from the transaction in “Other income, net” in the consolidated statements of comprehensive income (loss) for the year ended December 31, 2017. The deconsolidation of News Republic did not meet the definition of a discontinued operation in accordance with ASC 205-20, |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Investments | 4. INVESTMENTS (a) Short-term investments As of December 31, 2018, and 2019, short-term investments included time deposits, convertible loan, and structured note in commercial banks which is classified as available-for-sale debt securities in accordance with ASC 320-10, of RMB930,610 and RMB1,369,118 (US$196,661), respectively. For the years ended December 31, 2017, 2018 and 2019, the Group recognized interest income from its short-term investments of RMB16,929, RMB38,368 and RMB45,993 (US$6,606), respectively. For the years ended December 31, 2017, 2018 and 2019, the Group recognized fair value gains on available-for-sale , respectively . The Group recognized an impairment loss on short-term investments of nil, nil and RMB3,506 (US$504) for the years ended December 31, 2017, 2018 and 2019, respectively. (b) Long-term investments The company’s l method accounted for using equity method, equity method investments accounted for using fair value option and available-for-sale Equity investments accounted for at fair value using the measurement alternative Equity investments at fair value without readily determinable fair value were accounted as cost method investments prior to adopting ASC 321. In accordance with ASC 321, the Group elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of December 31, 2018 and 2019, the carrying amount of the Group’s equity investments accounted for at fair value using the alternative measurement was RMB1,564,062 and RMB1,895,951 (US$272,336), including RMB432,504 and RMB618,314 (US$88,815) accumulated impairment , respectively . During the year s , respectively. Total unrealized and realized gains and losses of equity securities without readily determinable fair values for the years ended December 31, 2018 and 2019 were as follows: For the year ended December, 31 2018 2019 RMB RMB US$ Gross unrealized gains (upward adjustments) 357,372 78,321 11,250 Gross unrealized losses (impairment) (94,895 ) (180,913 ) (25,987 ) Net unrealized gains and losses on equity securities held 262,477 (102,592 ) (14,737 ) Net realized gains on equity securities sold 319,711 — — Total net gains (losses) recognized in other income, net 582,188 (102,592 ) (14,737 ) Disposal gain of cost method investments amounting to RMB947,069 was recognized in “Other income, net” in the consolidated statements of comprehensive income (loss) for the year ended December 31, 2017. In 2019, the Group: i) acquired additional preferred shares of Beijing OrionStar Technology Co., Ltd. (“Beijing OrionStar”) with a in-substance In 2018, the Group: i) acquired additional preferred shares of Beijing OrionStar at a cash consideration of RMB203,216. ii) disposed certain portion of equity ownership of Bytedance and recognized disposal gain of RMB300,211 and a fair value gain of RMB300,211 for the remaining portion of equity ownership in “ O in-substance In 2017, the Group acquired: i) a small minority equity interest of Bytedance at a consideration of RMB329,710, ii) preferred shares representing 29.6% equity interest of Beijing OrionStar and a two-year The Group received dividends form investees of RMB58,741, RMB nil and RMB13,217 (US$1,899) for the years ended December 31, 2017, 2018 and 2019, respectively. Equity investments with readily determinable fair value In 2019, the Group purchased equity interest of a company listed on the HK Stock Exchange, for a cash consideration of RMB28,051 (US$4,029). Unrealized gains for the Equity investments with readily determinable fair value were nil, nil and RMB2,853 (US$410), which were recorded in “ O Equity investment accounted for using fair value option In September 2019, the Group owned 49.6% equity interest of Live.me on a fully dilutive basis after deconsolidation (Note 3). The fair value of the remaining share interests was RMB388,581 (USD$55,816) as of December 31, 2019. Unrealized losses for Equity investments accounted for using fair value option were nil, nil and RMB102,555 (US$14,731), which were recorded in “ O Equity investments accounted for using equity method The carrying amount of the Company’s equity method investments w ere In 2019, the Group acquired: i) equity interests in Ziniu Fund, L.P. with a cash consideration of RMB30,000 (US$4,309); ii) other equity method investments with aggregate consideration of RMB4,026 (US$ 578). In 2018, the Group acquired equity method investments with aggregate consideration of RMB5,721. In 2017, the Group acquired: i) equity interests in Ziniu Fund, L.P. with a cash consideration of RMB40,000; ii) other equity method investments with aggregate consideration of RMB14,516. The Group recorded a gain of RMB495, a loss of RMB384 and a gain of RMB7,594 (US$1,091) from equity investments accounted for using equity method for the years ended December 31, 2017, 2018 and 2019, respectively. The Group also recognized impairment losses of nil, RMB 31 and nil for the years ended December 31, 2017, 2018 and 2019, respectively. The Group recognized deemed disposal gain of RMB6,276, nil and nil for the years ended December 31, 2017, 2018 and 2019, respectively. None of equity method investments, including the investment that the Group elects to account for using the fair value option, was considered individually material for the years ended December 31, 2017, 2018 and 2019. The Group summarized the unaudited condensed financial information of the Group’s equity investments as a group below in accordance with Rule 4-08 S-X: As of December 31, 2018 2019 RMB RMB US$ Balance sheet data: Current assets 166,559 469,712 67,470 Non-current 608,712 862,552 123,898 Current liabilities 5,262 280,790 40,333 Non-current 4,320 15,610 2,242 Redeemable p — 870,001 124,968 For the y 2017 2018 2019 RMB RMB RMB US$ Operating data: Revenues 53,175 24,073 970,017 139,334 Gross profit 43,947 12,830 223,883 32,159 Operating (loss) income (2,372 ) 29,066 (66,751 ) (9,588 ) Net income (loss) 5,849 25,301 (78,146 ) (11,225 ) Available-for-sale Available-for-sale in long-term investments long-term available-for-sale R MB (US$1,002), respectively. The Group recognized an impairment loss on long-term available-for-sale for the years ended December 31, 2017, 2018 and 2019, respectively. For the years ended December 31, 2017, 2018 and 2019, the Group recognized fair value gain (loss) on long-term available-for-sale |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, Net | 5. ACCOUNTS RECEIVABLE, NET As of December 31, 2018 2019 RMB RMB US$ Accounts receivable 739,252 578,591 83,109 Allowance for doubtful accounts (83,991 ) (109,315 ) (15,702 ) Accounts re ceivable , net 655,261 469,276 67,407 As of December 31, 2018, and 2019, all accounts receivable was due from third party customers. Provision for doubtful accounts for the years ended December 31, 2017, 2018 and 2019 were RMB11,688, RMB11,222 and RMB24,807 ( US |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and Other Current Assets | 6. PREPAYMENTS AND OTHER CURRENT ASSETS As of December 31, 2018 2019 RMB RMB US$ Other receivables from advertisers 571,900 659,128 94,678 Advances to suppliers 73,554 83,830 12,041 Prepaid expenses 32,617 50,398 7,239 Inventor ies, net 12,212 31,287 4,494 Receivable from third-party payment platform 121,285 25,994 3,734 Convertible loans 40,428 15,835 2,275 Receivable from equity transferees 61,345 — — Others 151,373 69,637 10,003 Total 1,064,714 936,109 134,464 (i) As of December 31, 2018 and 2019, convertible loan s loan , Consolidation was Provision for doubtful accounts for the years ended December 31, 2017, 2018 and 2019 were RMB1,299, RMB6,292 and RMB109,408 respectively. Reserve for inventory for the years ended December 31, 2017, 2018 and 2019 were nil, RMB149 and RMB2,800 (US$402), respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment, Net | 7. PROPERTY AND EQUIPMENT, NET As of December 31, 2018 2019 RMB RMB US$ Electronic equipment 114,332 168,843 24,252 Leasehold improvements 65,084 65,028 9,341 Office equipment and fixtures 27,378 28,374 4,076 Motor vehicles 4,065 4,579 658 Construction in progress 24 2,018 290 Less: Accumulated depreciation 146,964 165,445 23,765 Property and equipment, net 63,919 103,397 14,852 Depreciation expense of property and equipment for the years ended December 31, 2017, 2018 and 2019 were RMB45,156, RMB40,244 and RMB37,382 (US$5,370), respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net | 8. INTANGIBLE ASSETS, NET Intangible assets and the related accumulated amortization were summarized as follows: As of December 31, 2019 Gross Accumulated Accumulated Net carrying RMB RMB RMB RMB US$ Online game licenses 195,903 (128,370 ) (50,417 ) 17,116 2,458 Technology 149,227 (125,350 ) (1,473 ) 22,404 3,219 Platform 76,748 (42,206 ) (34,532 ) 10 1 Customer relationship 49,308 (46,474 ) (2,834 ) — — User base 48,490 (48,490 ) — — — Trademarks 22,824 (17,154 ) (1,279 ) 4,391 631 Domain names 4,234 (3,679 ) — 555 80 Non-compete 1,610 (1,610 ) — — — Total 548,344 (413,333 ) (90,535 ) 44,476 6,389 As of December 31, 2018 Gross Accumulated Accumulated Net carrying RMB RMB RMB RMB Online game licenses 184,216 (109,230 ) (42,730 ) 32,256 Technology 126,404 (115,358 ) — 11,046 Customer relationship 48,623 (45,835 ) (2,788 ) — User base 47,717 (47,717 ) — — Trademarks 21,265 (16,152 ) (1,258 ) 3,855 Platform 75,505 (41,522 ) (33,973 ) 10 Domain names 4,390 (3,136 ) — 1,254 Non-compete 1,610 (1,610 ) — — Total 509,730 (380,560 ) (80,749 ) 48,421 The Group recorded impairment loss in “Other operating income, net”. The impairment recognized on intangible assets were RMB38,862, RMB12,767 and RMB8,800 (US$1,264) for the years ended December 31, 2017, 2018 and 2019, respectively. Amortization expense of intangible assets for the years ended December 31, 2017, 2018 and 2019 were RMB91,145, RMB39,863 and RMB28,086 (US$4,034), respectively. Estimated amortization expense relating to the existing intangible assets with finite lives for each of next five years and thereafter is as follows: For the y RMB US$ 2020 13,074 1,877 2021 11,817 1,697 2022 7,427 1,067 2023 6,130 881 2024 1,416 203 Thereafter 4,612 664 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill | 9. GOODWILL For the years ended December 31, 2017 and 2018, the Group performed a qualitative assessment for the reporting units of Utility products and related services, Mobile entertainment and AI and others based on the requirements of ASC 350-20. As the Company’s market capitalization was lower than the carrying amount of the net assets, the Group performed impairment assessment for the goodwill of all reporting units using the two-step The changes in the carrying amount of goodwill were as follows: Utility products Mobile AI and others Total RMB RMB RMB RMB Balance at January 1, 2018 518,585 102,644 12,928 634,157 Deconsolidation of a subsidiary (38,579 ) — (2,566 ) (41,145 ) Foreign exchange effect 20,724 4,101 — 24,825 Balance at December 31, 2018 500,730 106,745 10,362 617,837 Goodwill acquired in business combination — — 10,907 10,907 Deconsolidation of a — (92,025 ) — (92,025 ) Impairment loss (508,198 ) (16,198 ) (21,269 ) (545,665 ) Foreign exchange effect 7,468 1,478 — 8,946 Balance at December 31, 2019 — — — — Balance as of December 31, 2019 in US$ — — — — |
Lease
Lease | 12 Months Ended |
Dec. 31, 2019 | |
Lease | 10. LEASE The Group’s operating leases mainly related to offices and employees’ accommodation facilities. For leases with terms greater than 12 months, the Group records the related assets and lease liabilities at the present value of lease payments over the term. Certain leases include rental-free periods, renewal options and/or termination options, which are factored into the Group’s determination of lease payments when appropriate. As of December 31, 2019, the Group ha d As of December 31, 2019, the weighted average remaining lease term was 3.7 years and the weighted average discount rate was 4.9% for the Group’s operating leases. Operating lease cost for the year ended December 31, 2019 was RMB66,609 (US$9,568), which excluded cost of short-term contracts. Short-term lease cost for the year ended December 31, 2019 was RMB7,039 (US$1,011). For the year ended December 31, 2019, no lease cost was capitalized. Future lease payments under operating leases as of December 31, 2019 were as follows: For the year ending December 31, RMB US$ 2020 62,380 8,960 2021 50,781 7,294 2022 47,853 6,874 2023 36,336 5,219 2024 2,119 304 Total future lease payments 199,469 28,651 Less: imputed interest 19,365 2,781 Total lease liability balance 180,104 25,870 |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Expenses And Other Current Liabilities | 11. ACCRUED EXPENSES AND OTH ER ES As of December 31, 2018 2019 RMB RMB US$ Payable to online advertising platforms as agency 523,765 636,745 91,463 Accrued operating expenses 193,648 196,459 28,220 Salary and welfare payable 210,483 165,207 23,731 Accrued advertising, marketing and promotional expenses 288,290 105,695 15,182 Advance received in advertising agency services 53,159 113,988 16,373 Deferred revenue 85,068 93,821 13,477 Operating lease liabilities current portion — 58,503 8,404 Other taxes payable 35,120 30,890 4,437 Accrued bandwidth and cloud service costs 20,960 6,581 945 Others 104,149 96,838 13,909 Total 1,514,642 1,504,728 216,141 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | 12. SEGMENT INFORMATION The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenues and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastruct ur en The following tables present the summary of each segment’s revenues, operating income (loss) which were considered as segment operating performance measure, for the years ended December 31, 2017, 2018 and 2019: For the y 2017 2018 2019 RMB RMB RMB US$ Revenues: Utility Products and Related Services 3,439,563 3,119,483 1,573,030 225,952 Mobile Entertainment 1,496,443 1,778,867 1,871,543 268,830 AI and others 38,751 83,355 143,122 20,558 Total consolidated revenues 4,974,757 4,981,705 3,587,695 515,340 Operating income (loss): Utility Products and Related Services 979,447 1,034,968 297,099 42,676 Mobile Entertainment (417,350 ) (312,515 ) (375,278 ) (53,905 ) AI and others (41,901 ) (170,113 ) (359,628 ) (51,657 ) Unallocated expenses(i) (73,316 ) (85,118 ) (673,105 ) (96,687 ) Total consolidated operating (loss) income 446,880 467,222 (1,110,912 ) (159,573 ) (i) Unallocated items include share-based compensation and goodwill impairment which were not allocated to segments. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2019 | |
Geographical Information | 13. GEOGRAPHICAL INFORMATI ON The following tables set forth revenues and property and equipment, net by geographic area: For the year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Revenues: PRC 1,639,248 1,971,113 1,388,107 199,389 Non-PRC(i) 3,335,509 3,010,592 2,199,588 315,951 United States 2,071,646 1,731,490 1,342,021 192,769 Rest of the world(ii) 1,263,863 1,279,102 857,567 123,182 As of December 31, 2018 2019 RMB RMB US$ Property and equipment, net: PRC 59,745 100,389 14,420 Non-PRC 4,174 3,008 432 (i) Non-PRC (ii) No individual country, other than disclosed above, exceeded 10% of total revenues for the year ended December 31, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | 14. INCOME TAXES The Company is incorporated in the Cayman Islands and conducts its primary business operations through its subsidiaries, VIEs and subsidiaries of VIEs in the PRC. It also has subsidiaries mainly in Hong Kong, Singapore and Japan. Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain arising in Cayman Islands. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Cheetah Technology, HK Zoom, Cheetah Information and Cheetah Mobile Hong Kong are incorporated in Hong Kong and are subject to Hong Kong profits tax rate of 16.5%. Singapore Cheetah Mobile Singapore is incorporated in Singapore and is subject to Singapore corporate income tax rate of 17% in 2015. Started from 2016, the Singapore Economic Development Board (“EDB”) provides a tax holiday of a reduced corporate tax rate at 5% on incremental income from qualifying activities to Cheetah Mobile Singapore for ten years from 2016 to 2025 under the Development Expansion Incentive (“DEI”) scheme. In consideration of the change in business environment, Cheetah Singapore was no longer eligible for the DEI scheme in 2019, and Cheetah Singapore is subject to 17% income tax rate in 2019. Japan Kingsoft Japan is incorporated in Japan with paid-in Japaneses Yen (“JPY”) 100 paid-in PRC The Company’s subsidiaries in the PRC and the VIEs are subject to the statutory rate of 25%, unless otherwise specified, in accordance with the Enterprise Income Tax law (the “EIT Law”), which was effective since January 1, 2008. Beijing Security, being qualified as High New Technology Enterprise (“HNTE”), is entitled to the preferential income tax rate of 15% from 2017 to 2019. As qualified HNTEs, Conew Network and Beijing Kingsoft Cheetah Technology Co., Ltd. are entitled to the preferential income tax rate of 15% from 2018 to 2020; And Beijing Mobile and Beijing Network are entitled to the preferential income tax rate of 15% from 2019 to 2021. Pursuant to Ministry of Finance and State Administration of Taxation Announcement [2019] No.68, new Software development enterprise are each entitled to a tax holiday two-year prior to December 31, 2018. Zhuhai Baoqu Technology Co., Ltd. being qualifying as a new software development enterprise in the second year is entitled to a tax holiday of full EIT exemption in 2019 Without the tax holidays and preferential tax, the Group’s income tax expenses would have increased by RMB67,934 and for the years ended December 31, 2017 and 2018, and decreased by RMB84,520 ( US$12,141 for the years ended December 31, 2019, respectively. The impacts of the tax holidays and preferential tax rates were an increase in the basis earnings per share of RMB0.0487 and for the years ended December 31, 2017 and 2018, respectively, and a decrease in the loss per share of . Under the EIT Law, dividends paid by PRC enterprises out of profits earned post-2007 to non-PRC Income (loss) before income taxes consists of: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ PRC 242,820 142,077 (589,752 ) (84,713 ) Non-PRC 1,190,445 1,127,646 224,065 32,184 Total 1,433,265 1,269,723 (365,687 ) (52,529 ) The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive income ( loss Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Current income tax expenses 82,908 108,935 1,923 276 Deferred income tax (benefits) expenses (25,306 ) 8,065 5,981 859 Income tax expenses 57,602 117,000 7,904 1,135 A reconciliation of the differences between the statutory tax rate and the effective tax rate for enterprise income tax is as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Income (loss) before income tax 1,433,265 1,269,723 (365,687 ) (52,529 ) Income tax expense computed at the PRC statutory tax rate of 25% 358,316 317,431 (91,423 ) (13,132 ) Effect of different tax rates in different jurisdictions (119,565 ) (192,671 ) (178,059 ) (25,577 ) Effect of tax holiday and preferential tax rates (80,671 ) (61,434 ) 84,520 12,141 Research and development super-deduction (50,223 ) (90,521 ) (105,443 ) (15,146 ) Non-taxable (188,139 ) (46,031 ) (15,804 ) (2,270 ) Non-deductible 71,039 22,561 165,580 23,784 Effect of change in tax rate 7,279 1,176 (7,991 ) (1,148 ) Outside basis difference on investment 9,808 41,386 (30,681 ) (4,406 ) Withholding tax and others 18,149 55,712 (5,470 ) (787 ) Changes in valuation allowance 31,609 69,391 192,675 27,676 Income tax expenses 57,602 117,000 7,904 1,135 (i) Non-taxable (ii) Non-deductible Deferred taxes were measured using the enacted tax rates for the periods in which the temporary differences are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2018 and 2019 are as follows: As of December 31, 2018 2019 RMB RMB US$ Deferred tax assets: Tax loss carry forward 174,058 177,107 25,440 Equity investment loss 19,297 47,202 6,780 Provision for doubtful accounts 15,520 17,675 2,539 Intangible assets and accrued expenses 9,029 6,787 975 Deferred revenue 2,321 2,153 309 Government subsidies 615 100 14 Share-based compensa tion 151 2,584 371 Others 8,933 7,611 1,093 Less: valuation allowance 141,028 229,268 32,932 Deferred tax assets 88,896 31,951 4,589 Deferred tax liabilities: Outside basis difference on investmen t 110,222 78,211 11,234 Equity method investment — 4,567 656 Long-lived assets arising from business acquisitions 69 69 10 Deferred tax liabilities 110,291 82,847 11,900 The Group operates through several subsidiaries, VIEs and subsidiar ies more-likely-than-not Undistributed earnings of certain of the Company’s PRC subsidiaries amounted to approximately RMB820,099 and RMB722,056 (US$103,717) on December 31, 2018 and 2019, respectively. Those earnings are considered to be indefinitely reinvested; accordingly, no provision for PRC withholding tax has been provided thereon. Upon repatriation of those earnings in the form of dividends, the Group would be subject to PRC withholding tax at 10%. The PRC withholding tax rate could be reduced to 5% should the treaty benefit between Hong Kong and the PRC be applicable. As such, the amount of unrecognized deferred income tax liabilities is approximately ranging from RMB41,005 to RMB82,010 and RMB36,103 (US$5,186) to RMB72,206 (US$10,372) as of December 31, 2018 and 2019, respectively. As of December 31, 2019, the Group had taxable losses of approximately RMB1,321,790 (US$189,863) primarily deriving from entities in the PRC and 2020 to 2029; the Hong Kong taxable loss can be carried forward without an expiration date. Unrecognized tax benefits As of December 31, 2018 and 201 9 RMB65,936 (US$9,471), of RMB25,746 (US$3,698), respectively, were RMB40,190 (US$5,773), respectively non-current tax-deduction 2018 2019 RMB RMB US$ Balance at January 1 63,252 76,208 10,947 Additions based on tax positions related to current year 12,956 3,853 553 Reversal based on tax positions related to prior years — (12,655 ) (1,818 ) Decrease related to deconsolidation — (1,470 ) (211 ) Balance at December 31 76,208 65,936 9,471 The Group recognizes accrued interest related to unrecognized tax benefits in income tax expenses. For the years ended December 31, 2018 and 2019, the Group recognized approximately RMB6,540 a , respectively As of December 31, 2019, the tax years ended December 31, 201 4 9 9 authorities. The tax years ended December 31, 2013 through 2019 for the Group’s subsidiaries in Hong Kong are generally subject to examination by the Hong Kong tax authorities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | 15. RELATED PARTY TRANSACTIONS a) Principal related parties Name of related parties Relationship with the Group Tencent and its subsidiaries (“Tencent Group”) Entities controlled by a shareholder of the Group Kingsoft and its subsidiaries (“Kingsoft Group”) Entities controlled by a shareholder of the Group OrionStar and its subsidiaries (“OrionStar Group”) Entities controlled by a director of the Group Shenzhen Feipai Technology Co., Ltd. (“Shenzhen Feipai”) Entities influenced materially by the Group Pixiu Inc. and its subsidiaries (“Pixiu Group”) Entities influenced materially by the Group Xiaomi and its subsidiaries (“Xiaomi Group”) (i) Entities controlled by a former director of the Group Matrix Partners China IV Hong Kong Limited (“Matrix Partners”) (ii) Entities controlled by a former director of the Group Live.me and its subsidiaries (“Live.me Group”) Entities influenced materially by the Group (i) Xiaomi Group is controlled by Mr. Jun Lei, who was a former member of the i (ii) Matrix Partners is controlled by Mr. Ying Zhang, who was a former member of the in b) In addition to the transactions detailed elsewhere in these financial statements, the Group had the following material related party transactions for the years ended December 31, 2017, 2018 and 2019: For the year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Services received from: (i ) Kingsoft Group 45,173 19,532 23,804 3,419 Tencent Group 48,094 70,867 73,655 10,580 OrionStar Group — — 16,857 2,421 Xiaomi Group 61,042 7,356 — — Services provided to: (ii ) Tencent Group 58,669 197,992 176,099 25,295 OrionStar Group 10,920 21,903 20,242 2,908 Pixiu Group — 6,900 13,450 1,932 Purchase of products: OrionStar Group ( iii ) — 9,136 98,197 14,105 Loans and investments provided to: OrionStar Group 264,768 203,216 278,693 40,032 Pixiu Group — 33,620 39,973 5,742 Shenzhen Feipai 5,000 13,000 3,000 431 Others — — 59,816 8,592 Capital injection received from: Matrix Partners 151,419 — — — (i) The Group entered into agreements with Kingsoft Group, Tencent Group, OrionStar Group and Xiaomi Group, pursuant to which these entities provided services including corporate, technology support and leasing services to the Group (ii) The Group entered into a series of agreements with Tencent Group and OrionStar Group to provide online marketing services and technical support services. (iii) The Group entered into a distributorship and cooperation agreement with OrionStar Group, pursuant to which the Group bec a c) The balances between the Group and its related parties as of December 31, 2018 and 2019 are listed below: (1) Amount due from related parties As of December 31, 2018 2019 RMB RMB US$ Live.me Group — 87,302 12,540 Tencent Group 52,338 67,044 9,630 Pixiu Group 39,968 49,788 7,152 OrionStar Group 31,450 42,352 6,083 Kingsoft Group 10,570 3,138 451 Other related parties (i) 13,803 9,164 1,317 Total 148,129 258,788 37,173 (i) As of December 31, 2018 and 2019, the amount of due from related parties included convertible loans of RMB18,000 and RMB21,000 (US$3,016) to a related party. The conversion features and the put option were considered as embedded derivatives that do not meet the criteria to be bifurcated and were accounted for together with the loan receivable. In accordance with ASC 810, Consolidation y All the balances with related parties as of December 31, 2018 and 2019 were unsecured and repayable on demand. (Reversal) provision for doubtful accounts for the years ended December 31, 2017, 2018 and 2019 were RMB(7,312), RMB105 and RMB9,431 (US$1,355), respectively. (2) Amount due to related parties As of December 31, 2018 2019 RMB RMB US$ OrionStar Group 4,732 32,368 4,649 Tencent Group 17,462 29,757 4,274 Live.me Group — 17,509 2,515 Kingsoft Group 11,937 8,683 1,247 Other related parties 3,167 3,893 560 Total 37,298 92,210 13,245 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation | 16. SHARE-BASED COMPENSATION 2014 Restricted Shares Plan On April 22 and April 24, 2014, the board of directors and the shareholders of the Company approved to adopt a restricted shares plan (the “2014 Restricted Shares Plan”), respectively. Under the 2014 Restricted Shares Plan, the Company is authorized to issue up to 122,545,665 Class A ordinary shares (excluding shares which have lapsed or have been forfeited) pursuant to the grant of restricted shares and restricted share units thereunder. Unless terminated earlier, the 2014 Restricted Shares Plan will terminate automatically in 2024. The share awards granted under 2014 Restricted Shares Plan had vesting terms of no longer than 5 years from the date of grant. Except for service conditions, there were no other vesting conditions for all the awards under 2014 Restricted Shares Plan. The following table summarizes the Company’s restricted shares with an option feature activity under the 2014 Restricted Shares Plan during the year ended December 31, 2019: Number of Weighted Weighted Weighted Aggregate Outstanding at January 1, 2019 30,652,305 0.22 1.15 5.31 11,835 Granted 6,820,900 0.03 0.60 Forfeited (7,159,989 ) 0.13 0.81 Exercised (4,950,498 ) 0.10 1.08 Modified in August 2019 (9,883,062 ) 0.34 1.05 Outstanding at December 31, 2019 15,479,656 0.15 1.15 4.31 3,331 Vested and expected to vest at December 31, 2019 15,479,656 Exercisable as at December 31, 2019 6,730,544 Total intrinsic value of restricted shares with an option feature exercised for the year ended December 31, 2019 was RMB9,357 (US$1,344). The weighted-average grant-date fair value of options granted during the years 2018 and 2019 was US$1.00 and US$0.60, respectively. The grant date fair value of each restricted share with an option feature is estimated on the date of grant using the binomial tree option pricing model with the following assumptions used for years presented: Year ended Year ended Year ended Fair value of ordinary share (US$) 0.84~1.21 0.85~1.29 0.36~0.68 Risk-free interest rates 2.81%~2.99% 3.49%~3.59% 1.70%~3.25% Expected volatility range 55.9%~58.0% 55.5%~57.0% 57.1%~62.9% Expected dividend yield 0% 0% 0% Expected exercise multiple 2.2 2.2 2.2 Fair value per option granted (US$) 0.55~0.93 0.66~1.23 0.36~0.68 The risk-free interest rate for periods within the contractual life of the restricted shares with an option feature is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. Expected volatility is estimated based on the historical volatility ordinary shares of several comparable companies in the same industry. The dividend yield is estimated based on expected dividend policy over the expected term of the restricted shares with an option feature. The expected exercise multiple is based on management’s estimation, which the Company believes is representative of the future. As of December 31, 2019, there was RMB26,448 (US$3,799 ) non-vested On August 1, 2019, the Company’s compensation committee approved to cancel the exercise price for all unvested restricted shares with an option feature previously granted by the Company under the 2014 Restricted Shares Plan. Such exercise price cancellation was accounted by the Company as a share option modification and required remeasurement at the time of the modification. The total incremental cost as a result of the modification was RMB12,510 (US$1,797). The incremental cost related to vested restricted shares amounted to RMB5,117 (US$735) and was recorded in the consolidated statements of comprehensive income (loss) during the year ended December 31, 2019. The incremental cost related to unvested restricted shares amounted to RMB7,393 (US$1,062) and will be recorded over the remaining service periods. The following table summarizes the restricted shares activity pursuant to the 2014 Restricted Shares Plan for the year ended December 31, 2019: Number of Weighted average Unvested at January 1, 2019 — — Modified in August 2019 9,883,062 1.12 Vested (2,164,799 ) 1.31 Forfeited (221,450 ) 1.36 Unvested at December 31, 2019 7,496,813 1.06 As of December 31, 2019, the total estimated unrecognized share-based compensation expenses related to restricted shares awarded amounted to RMB19,653 (US$2,823), and is expected to be recognized over a weighted-average period of 1.41 years. Total estimated share-based compensation expenses may be adjusted for future changes in forfeiture rate. The total fair value of vested restricted shares on their respective vesting dates during the years ended December 31, 2019 were RMB5,354 (US$769). 2013 Incentive Scheme On January 2, 2014, the Company adopted an equity incentive scheme (the “2013 Incentive Scheme”). The 2013 Incentive Scheme provides for the grant of ordinary shares, restricted shares, share options and share appreciation rights to the employees, directors or non-employee had vesting terms of no longer than The following table summarizes the Group’s restricted shares with an option feature activity under the 2013 Incentive Scheme during the year ended December 31, 2019: Number of Weighted Weighted Weighted Aggregate Outstanding at January 1, 2019 44,791,941 0.33 1.13 5.01 12,546 Granted — — — Forfeited (3,417,123 ) 0.34 1.02 Exercised (2,111,675 ) 0.15 1.59 Modified in August 2019 (6,012,118 ) 0.34 1.10 Outstanding at December 31, 2019 33,251,025 0.34 1.13 4.01 765 Vested and expected to vest at December 31, 2019 33,251,025 Exercisable as at December 31, 2019 33,251,025 Total intrinsic value of restricted shares with an option feature exercised for the year ended December 31, 2019 was RMB4,063 (US$584). The weighted-average grant-date fair value of options granted during the years 2018 was US$1.03. The grant date fair value of each restricted share with an option feature is estimated on the date of grant using the binomial tree option pricing model with the following assumptions used for years presented: Year ended December 31, 2017 Year ended December 31, 2018 Year ended December 31, 2019 Fair value of ordinary share (US$) 0.84~1.21 1.06~1.43 — Risk-free interest rates 2.78%~2.99 % 2.97%~3.58 % — Expected volatility range 56.1%~57.5 % 56.3%~57.2 % — Expected dividend yield 0 % 0 % — Expected exercise multiple 2.2 2.2 — Fair value per option granted (US$) 0.53~0.88 0.79~1.15 — The risk-free interest rate for periods within the contractual life of the restricted shares with an option feature is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. Expected volatility is estimated based on the historical volatility ordinary shares of several comparable companies in the same industry. The dividend yield is estimated based on expected dividend policy over the expected term of the restricted shares with an option feature. The expected exercise multiple is based on management’s estimation, which the Company believes is representative of the future. As of December 31, 2019, there was nil unrecognized share-based compensation expenses related to non-vested On August 1, 2019, the Company’s compensation committee approved to cancel the exercise price for all unvested restricted shares with an option feature previously granted by the Company under the 2013 Incentive Scheme Plan. Such exercise price cancellation The following table summarizes the restricted shares activity pursuant to the 2013 Incentive Scheme for the year ended December 31, 2019: Number of Weighted average after modification Unvested at January 1, 2019 — — Modified in August 2019 6,012,118 1.14 Vested (1,052,546 ) 1.02 Forfeited (28,515 ) 1.33 Unvested at December 31, 2019 4,931,057 1.17 As of December 31, 2019, the total estimated unrecognized share-based compensation expenses related to restricted shares awarded amounted to RMB15,615 (US$2,243), and is expected to be recognized over a weighted-average period of 1.63 years. Total estimated share-based compensation expenses may be adjusted for future changes in forfeiture rate. The total fair value of vested restricted shares on their respective vesting dates for the year ended December 31, 2019 were RMB2,569 (US$369). 2011 Share Award Scheme On May 26, 2011, the board of directors of the Company approved and adopted the 2011 Share Award Scheme, as amended in September 2013 and November 2016, to recognize the contributions of certain employees and to give incentives thereto in order to retain them for the continued operation and development of the Group. Under the 2011 Share Award Scheme, the board of directors may grant restricted shares to its employees and directors to receive an aggregate of no more than 100,000,000 ordinary shares of the Company (excluding shares which have lapsed or have been forfeited) as at the date of such grant. Unless early terminated by the board of directors of the Company, the 2011 Share Award Scheme is valid and effective for a term of ten years commencing from its adoption. Under the 2011 Share Award Scheme, grantees have no dividend or voting rights until the restricted shares are vested. The Group has set up the Share Award Scheme Trust for the purpose of administering the 2011 Share Award Scheme and holding shares awarded to the employees before they vest. As of December 31, 2019, 331,947 (2018: 1,111,898) forfeited and ungranted restricted shares are held by the Share Award Scheme and available to be granted in the future. Subsequent to the IPO, fair value of the ordinary shares was determined based on the price of the Company’s publicly traded ADSs. The following table summarizes the restricted shares activity pursuant to the 2011 Share Award Scheme for the year ended December 31, 2019: Number of Weighted average Unvested at January 1, 2019 5,739,320 1.06 Granted 2,189,310 0.37 Vested (2,452,468 ) 1.08 Forfeited (1,409,359 ) 1.05 Unvested at December 31, 2019 4,066,803 0.69 The weighted-average grant-date fair value of restricted share granted during the years 2018 and 2019 was US$0.96 and US$0.37, respectively. As of December 31, 2019, the total estimated unrecognized share-based compensation expenses related to restricted shares awarded amounted to RMB11,327 (US$1,627), and is expected to be recognized over a weighted-average period of 2.01 years. Total unrecognized share-based compensation expenses may be adjusted for future changes in forfeiture rate. The total fair value of vested restricted shares on their respective vesting dates for Share-based Awards of subsidiaries Subsidiaries of the Group also have equity incentive plans granting share-based awards. The grant date fair value of each share-based award is estimated on the date of grant using the binomial tree option pricing model with the following assumptions used for years presented: Year ended December 31, 20 Year ended December 31, 20 Year ended December 31, 20 Fair value of ordinary share (US$) 0.41 0.69~0.86 0.42~0.94 Risk-free interest rates 1.60% 1.75%~3.10% 2.57%~ 3.73% Expected volatility range 43.4% 50.1%~57.2% 57.2 %~59.2% Expected dividend yield 0% 0% 8.61 %~8.72% Fair value per option granted (US$) 0.41 0.14~0.86 0.22~0.27 The following table summarizes the share-based compensation expenses of subsidiaries’ share-based awards recognized by the Group: For the y 2017 2018 2019 RMB RMB RMB US$ Research and development — 8,803 31,907 4,583 Selling and marketing — 95 1,479 212 General and administrative 10,721 3,107 15,286 2,196 Total 10,721 12,005 48,672 6,991 As of December 31, 2019, there was RMB44,720 (US$6,424) unrecognized share-based compensation expenses related to incentive plans, which is expected to be recognized over a vesting period of 2.03 years. Total share-based compensation expenses recorded by the Group are as follows: For the y 2017 2018 2019 RMB RMB RMB US$ Cost of revenues 762 206 524 75 Research and development 20,691 14,224 59,771 8,586 Selling and marketing 39 8,967 3,818 548 General and administrative 51,824 61,721 63,327 9,097 Total 73,316 85,118 127,440 18,306 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. COMMITMENT AND CONTINGENCIES Commitment The Group does not have any significant commitments other than operating leases as of December 31, 2019. Litigation The Group and certain of current and former officers have been named as defendants in a putative securities class action filed on November 30, 2018 in the U.S. District Court for the Southern District of New York: Marcu v. Cheetah Mobile Inc., et al., Case No. 1:18-cv-11184. 10b-5 The Group is involved in several other proceedings as of December 31, 2019 which are either immaterial, or the Group does not believe that a reasonable possibility of loss has been incurred as the proceedings are in the early stages, and/or there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions. As a result, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, which includes eventual loss, fine, penalty or business impact, if any, and therefore, an estimate for the reasonably possible loss or a range of reasonably possible losses cannot be made. However, the Group believes that such matters, individually and in the aggregate, when finally resolved, are reasonably likely not to have a material adverse effect on the Group’s consolidated results of operations, financial position and cash flows. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity | 18. SHAREHOLDERS’ EQUITY Ordinary shares Immediately following the closing of the IPO, the Memorandum and Articles of Association were amended and restated such that the authorized share capital of the Company was reclassified and redesignated into 10,000,000,000 shares comprising of (i) 7,600,000,000 Class A ordinary shares; (ii) 1,400,000,000 Class B ordinary shares; and (iii) 1,000,000,000 reserved shares at par value of US$0.000025 per share. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. Each share of Class A ordinary shares is entitled to one vote per share and is not convertible into Class B ordinary shares under any circumstances. Each share of Class B ordinary shares is entitled to ten votes per share and is convertible into one Class A ordinary share at any time by the holder thereof. Upon any transfer of Class B ordinary shares by the holder thereof to any person or entity that is not an affiliate of such holder, such Class B ordinary shares would be automatically converted into an equal number of Class A ordinary shares. There were 48,412,760 and nil Class B ordinary shares transferred to Class A ordinary shares in the year s As of December 31, 2018, there were 419,253,027 and 946,017,565 Class A and Class B ordinary shares outstanding. As of December 31, 2019, there were 431,985,016 and 946,017,565 Class A and Class B ordinary shares outstanding. Retained earnings In accordance with the PRC Regulations on Enterprises with Foreign Investment and their articles of association, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory common reserve of at least 10% of its annual after-tax As of December 31, 2018 2019 RMB RMB US$ PRC statutory reserve funds 38,349 45,806 6,580 Unreserved retained earnings 2,667,621 1,899,132 272,793 Total retained earnings 2,705,970 1,944,938 279,373 Under PRC laws and regulations, there are restrictions on the Company’s subsidiaries in the PRC and VIEs with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Such restriction amounted to RMB1,406,789 (US$202,703) as of December 31, 2019. Furthermore, cash transfers from the Company’s subsidiaries in the PRC to its subsidiaries outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the subsidiaries in the PRC and VIEs to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. Accumulated other comprehensive income The components of accumulated other comprehensive income were Foreign currency Unrealized gains for-sale securities Total RMB RMB RMB Balance at January 1, 2017 227,728 417 228,145 Other comprehensive loss before reclassification (148,304 ) (433 ) (148,737 ) Other comprehensive loss attribute to noncontrolling interests 4,798 — 4,798 Balance at December 31, 2017 84,222 (16 ) 84,206 Other comprehensive income (loss) before reclassification 182,978 (3,734 ) 179,244 Other comprehensive income (14,146 ) — (14,146 ) Balance at December 31, 2018 253,054 (3,750 ) 249,304 Other comprehensive income before reclassification 77,097 10,913 88,010 Other comprehensive loss attribute to noncontrolling interests 459 — 459 Balance at December 31, 2019 330,610 7,163 337,773 Balance at December 31, 2019, in US$ 47,489 1,029 48,518 There was nil tax expense or benefit recognized related to the changes of each component of accumulated other comprehensive income for the years ended December 31, 2017, 2018 and 2019. |
Redeemable noncontrolling inter
Redeemable noncontrolling interests | 12 Months Ended |
Dec. 31, 2019 | |
Redeemable noncontrolling interests | 19. REDEEMABLE NONCONTROLLING INTERESTS In April and November 2017, Live.me, the Company and certain investors entered into share subscription and purchase agreements and certain other investment agreements to issue Series A Preferred Shares and B Preferred Shares (collectively as the “Live.me Preferred Shares”) for an aggregate cash consideration of RMB306,085 and RMB329,710 respectively. The Group determined that Live.me Preferred Shares should be classified as mezzanine equity since they are contingently redeemable. The Group accreted Live.me Preferred Shares to their redemption value, which is purchase price plus 6% compound interest per year over the period since issuance to the earliest redemption date using the interest method. The Group recorded accretion of RMB The redeemable noncontrolling interests for the years ended December 31, 2018 and 2019 are summarized below: RMB Balance at December 31, 2017 649,246 Accretion 38,601 Balance at December 31, 2018 687,847 Accretion 31,662 Deconsolidation of Live.me (Note 3) (719,509 ) Balance at December 31, 2019 — Balance at December 31, 2019 in US$ — |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (Loss) Per Share | 20. EARNINGS (LOSS) PER SHARE Basic and diluted earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2017 2018 2019 Ordinary Ordinary Class A Class A Class B Class B RMB RMB RMB US$ RMB US$ Earnings (loss) per share—basic Numerator: Net income (loss) attributable to Cheetah Mobile Inc. 1,348,194 1,166,909 (97,017 ) (13,937 ) (216,960 ) (31,164 ) Accretion of redeemable noncontrolling interests (13,451 ) (37,714 ) (9,228 ) (1,326 ) (20,637 ) (2,964 ) Dilution effect arising from share-based awards issued by subsidiaries — (14 ) (101 ) (15 ) (225 ) (32 ) Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries 1,334,743 1,129,181 (106,346 ) (15,278 ) (237,822 ) (34,160 ) Denominator: Weighted average number of ordinary shares outstanding 1,394,303,326 1,403,089,609 423,023,853 423,023,853 946,017,565 946,017,565 Earnings (loss) per share—basic 0.9573 0.8048 (0.2514 ) (0.0361 ) (0.2514 ) (0.0361 ) Earnings (loss) per share—diluted Numerator: Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries 1,334,743 1,129,181 (106,346 ) (15,278 ) (237,822 ) (34,160 ) Reallocation of net income as a result of conversion of Class B into Class A ordinary shares — — (237,822 ) (34,160 ) — — Net income (loss) attributable to ordinary shareholders 1,334,743 1,129,181 (344,168 ) (49,438 ) (237,822 ) (34,160 ) Denominator: Weighted average ordinary shares outstanding 1,394,303,326 1,403,089,609 423,023,853 423,023,853 946,017,565 946,017,565 Dilutive effect of Share-based awards 30,851,512 37,325,240 — — — — Conversion of Class B into Class A ordinary shares — — 946,017,565 946,017,565 — — Denominator used for earnings (loss) per share 1,425,154,838 1,440,414,849 1,369,041,418 1,369,041,418 946,017,565 946,017,565 Earnings ( loss 0.9366 0.7839 (0.2514 ) (0.0361 ) (0.2514 ) (0.0361 ) Earnings ( l Denominator used for earnings (loss) per ADS—basic 139,430,333 140,308,961 42,302,385 42,302,385 Denominator used for earnings (loss) per ADS—diluted 142,515,484 144,041,485 136,904,142 136,904,142 Earnings (loss) per ADS—basic 9.5728 8.0478 (2.5140 ) (0.3611 ) Earnings (loss) per ADS—diluted 9.3656 7.8393 (2.5140 ) (0.3611 ) The Group did not include certain restricted shares and restricted shares with an option feature in the computation of diluted earnings (loss) per share for the years ended December 31, 201 7 8 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2019 | |
Treasury Stock | 21. TREASURY STOCK In September, 2018, the Board of Directors of the Company authorized another share repurchase plan (the “2018 Share Repurchase Plan”) under which the Company may repurchase up to US$100 million from the open market, in negotiated transactions off the market, or through other legally permissible means in accordance with applicable securities laws from time to time within one year. As of December 31, 2018, the Company had repurchased under the 2018 Share Repurchase Plan an aggregate of 4,527,304 ADSs, representing 45,273,040 Class A ordinary shares for an aggregate denominated consideration of RMB221,932. These shares were recorded at their historical purchase cost , In September 2019, the Company canceled these treasury s t paid-in |
Employee Benefit
Employee Benefit | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit | 22. EMPLOYEE BENEFIT Full time employees of the Group participate in government mandated defined contribution plan, pursuant to which certain welfare benefits are provided to employees. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were approximately RMB175,508, RMB177,086 and RMB193,990 (US$27,865) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement | 23. FAIR VALUE MEASUREMENT ASC 820-10, Fair Value Measurements and Disclosures: Overall Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2 — Include other inputs that are directly or indirectly observable in the marketplace Level 3 — Unobservable inputs which are supported by little or no market activity ASC 820-10 Assets and liabilities measured or disclosed at fair value In accordance with ASC 820-10, available-for-sale available-for-sale The Group measures certain financial assets, including loans receivable, equity securities accounted for at fair value using measurement alternative, and equity investments accounted for using equity method at fair value on a nonrecurring basis only if an impairment loss were to be recognized. The Group’s non-financial For the year ended December 31, 2019, assets and liabilities measured or disclosed at fair value are summarized below: Fair value measurement or disclosure Total Fair Total Fair Quoted prices in Significant Significant Total gains RMB US$ RMB RMB RMB RMB Fair value measurement —Recurring: Available-for-sale 146,723 21,075 146,723 10,913 Equity investments with readily determinable fair value 30,743 4,416 30,743 2,853 Equity investments accounted for using fair value option 388,581 55,816 388,581 (102,555 ) Fair value measurement—Non-Recurring : Intangible assets, net 19 3 19 (8,800 ) Goodwill — — — (545,665 ) Equity investments accounted for at fair value using measurement alternative 926,926 133,145 926,926 (102,592 ) Total assets measured at fair value 1,492,992 214,455 30,743 146,723 1,315,526 (745,846 ) For the year ended December 31, 2018, assets and liabilities measured or disclosed at fair value are summarized below: Fair value measurement or disclosure Total Fair Total Fair Quoted prices in Significant Significant Total (losses) RMB US$ RMB RMB RMB RMB Fair value measurement—Recurring: Available-for-sale debt security 133,448 19,409 133,448 (3,732 ) Fair value measurement—Non-Recurring: Intangible assets, net 465 68 465 (12,767 ) Equity investments accounted for at fair value using measurement alternative 559,961 81,443 559,961 281,977 Total assets measured at fair value 693,874 100,920 133,448 560,426 265,478 For equity securities accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value (Note 4). The non-recurring fair value measurements to the carrying amount of an investment usually requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. These non-recurring fair value measurements were measured as of the observable transaction dates. The valuation methodologies involved require management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as volatility of comparable companies and probability of exit events as it relates to liquidation and redemption preferences. There were no transfers of fair value measurements into or out of Level 3 for the years ended December 31, 2017, 2018 and 2019. Equity RMB Balance as of January 1, 2019 — Addition 497,796 Fair value change (102,555 ) Foreign exchange translation adjustments (6,660 ) Balance as of December 31, 2019 388,581 Balance as of December 31, 2019 in US$ 55,816 The Group measured e . The significant unobservable inputs used in the fair value measurement and the corresponding impacts to the fair values are pre se Fair value Valuation technique Unobservable inputs Range Equity investments accounted for using fair value option 388,581 Discount cash flow method • Weighted average cost of capital • Sales growth rate 18% (16.2)%~21.5% A sensitivity analysis of the investment in equity investment accounted for using fair value option on December 31, 2019 shows that if the sales growth rate assumption was to increase 0.5% instantaneously, with all other variables hold constant, the fair value of the investment would increase by 8%. Similarly, a decrease of 0.5% in the sales growth rate assumption would reduce the fair value by 7%. If the weighted average cost of capital was to increase 0.5% instantaneously from the assumption on December 31, 2019, with all other variables hold constant, the fair value of the investment would decrease by 5%, while a decrease of 0.5% in weighted average cost of capital would increase the fair value by approximately 7%. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | 24. SUBSEQUENT EVENTS In February 2020, The Group’s Google Play Store, Google AdMob and Google AdManager accounts were disabled by Google. According to Google, the decision was made because some of the Group’s apps had not been compliant with Google policies, resulting in certain invalid traffic. Since February 20, 2020, the Group has been in continuous communication with Google to appeal the decision, clarify any misunderstanding, and adopt any requisite remedial measures to restore the disabled accounts. However, the Group was recently notified that Google was unable to reinstate the accounts after reviewing the appeal and additional information the Group provided. While the Group will continue to communicate with Google, it Recently, there was an outbreak of a novel strain of coronavirus (COVID-19), COVID-19 rm COVID-19 |
Condensed Financial Information
Condensed Financial Information of the Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information of the Company | 25. CONDENSED FINANCIAL INFORMATION OF THE COMPANY Balance Sheets As of December 31, 2018 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 318,546 249,586 35,851 Short-term investments — 795,510 114,268 Prepayments and other current assets 16,838 141,230 20,286 Due from related parties 2,312,111 965,477 138,682 Total current assets 2,647,495 2,151,803 309,087 Non-current Intangible assets, net 5 — — Goodwill 62,785 — — Long-term investments 628,888 1007,897 144,776 Investment in subsidiaries 3,064,747 2,836,345 407,415 Total non-current 3,756,425 3,844,242 552,191 Total assets 6,403,920 5,996,045 861,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other current liabilities 27,128 26,583 3,819 Due to related parties 836,642 933,466 134,084 Income tax payable 33,499 34,051 4,891 Total current liabilities 897,269 994,100 142,794 Deferred tax liabilities 29,925 69,401 9,969 Other non-current 261 266 38 Total non-current 30,186 69,667 10,007 Total liabilities 927,455 1,063,767 152,801 Shareholders’ equity Class A ordinary shares (par value of US$0.000025 per share; 7,600,000,000 shares authorized; 475,357,217 and 435,084,177 shares issued as of December 31, 2018 and 2019, respectively; 419,253,027 and 431,985,016 shares outstanding as of December 31, 2018 and 2019, respectively) 74 69 11 Class B ordinary shares (par value of US$0.000025 per share; 1,400,000,000 shares authorized; 957,985,982 shares issued and shares outstanding as of December 31, 2018 and 2019, respectively) 156 156 21 Treasury stock ( and nil 8 9 (221,932 ) — — Additional paid-in 2,742,893 2,649,342 380,554 Retained earnings 2,705,970 1,944,938 279,373 Accumulated other comprehensive inco me 249,304 337,773 48,518 Total shareholders’ equity 5,476,465 4,932,278 708,477 Total liabilities and shareholders’ equit y 6,403,920 5,996,045 861,278 Statements of Comprehensive Income (loss) For the y 2017 2018 2019 RMB RMB RMB US$ Revenues 52,053 14,525 — — Cost of revenues (6,919 ) (2,509 ) (5 ) (1 ) Gross profit 45,134 12,016 (5 ) (1 ) Operating expenses Research and development (11,370 ) 545 (858 ) (123 ) Selling and marketing (84 ) — — — General and administrati ve (18,931 ) (28,158 ) (41,872 ) (6,015 ) Impairment of goodwill — — (64,154 ) (9,215 ) Total operating expenses (30,385 ) (27,613 ) (106,884 ) (15,353 ) Equity in profit (loss) of subsidiari es 1,346,556 632,055 (495,735 ) (71,208 ) Interest (expense) income, net (6,525 ) 3,248 21,677 3,114 Foreign exchange (loss) gains, net (3,877 ) 3,551 152 22 Other ( loss (159 ) 604,346 306,006 43,955 Income (loss) before income taxes 1,350,744 1,227,603 (274,789 ) (39,471 ) Income tax expenses (2,550 ) (60,694 ) (39,188 ) (5,630 ) Net income ( loss 1,348,194 1,166,909 (313,977 ) (45,101 ) Other comprehensive (loss) income, net of tax of nil Unrealized (losses) gains on available-for-sale securities, net (433 ) (3,716 ) 10,913 1,568 Foreign currency translation adjustments (143,506 ) 168,814 77,556 11,140 Other comprehensive (loss) income (143,939 ) 165,098 88,469 12,708 Total comprehensive income (loss) 1,204,255 1,332,007 (225,508 ) (32,393 ) Statements of Cash Flows For the y 2017 2018 2019 RMB RMB RMB US$ Net cash provided by (used in) 40,685 243 (15,258 ) (2,192 ) Net cash provided by investing activities 265,767 339,955 375,584 53,950 Net cash provided by (used in) financing activities 23,929 (526,532 ) (494,055 ) (70,967 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (35,413 ) 66,054 64,769 9,304 Net increase (decrease) in cash, cash equivalents and restricted cash 294,968 (120,280 ) (68,960 ) (9,905 ) Cash, cash equivalents and restricted cash at beginning of the year 143,858 438,826 318,546 45,756 Cash, cash equivalents and restricted cash at end of the year 438,826 318,546 249,586 35,851 (a) Basis of presentation For the Company only condensed financial information, the Company records its investment in its subsidiaries, VIEs and subsidiaries of VIEs under the equity method of accounting. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries” and share of their income as “Equity in profit (loss) of subsidiaries” on the condensed statements of comprehensive income (loss). The subsidiaries VIEs and subsidiaries of VIEs did not pay any dividends to the Company for any of the years presented. The Company only condensed financial information should be read in conjunction with the Group’s consolidated financial statements. (b) Commitments The Company does not have any significant commitments or long-term obligations as of any of the periods presented. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). “Impairment of investments and convertible loans” and “Gain (loss) from equity method investments, net” in consolidated statements of comprehensive income (loss) have been reclassified to conform with the current year’s presentation to facilitate comparison. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and subsidiaries of VIEs. All significant intercompany transactions and balances between the Company, its subsidiaries, VIEs and subsidiaries of VIEs are eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties, VIEs and subsidiaries of VIEs are consolidated from the date on which control is transferred to the Company. On May 26, 2011, the board of directors of the Company approved and adopted a share award scheme (the “2011 Share Award Scheme”) in which selected employees of the Group are entitled to participate. The Group has set up a trust (the “Share Award Scheme Trust”) for the purpose of administering the 2011 Share Award Scheme and holding shares awarded to the employees before they vest and are transferred to the employees as instructed by employees. As the Group has the power to govern the financial and operating policies of the Share Award Scheme Trust and derives benefits from the contributions of the employees who have been awarded the shares of the Company through their continued employment with the Group, the Share Award Scheme Trust are included in the consolidated financial statements and any ungranted and unvested shares held by the Share Award Scheme Trust not transferred to grantees are not considered legally issued and outstanding ordinary shares of the Company. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year. Management evaluates estimates, including those related to the standalone selling prices of performance obligation of revenue contracts, the allowance for doubtful accounts, weighted average unit price of virtual currencies of LiveMe, the average paying user lives of online games, the purchase price allocation and fair value of noncontrolling interests with respect to business combinations, useful lives of long-lived assets and intangible assets, impairment of long-lived assets, impairment of investments, impairment of intangible assets, impairment of goodwill, valuation allowance for deferred tax assets, uncertain tax positions, share-based compensation, fair values of investments, and loss contingencies, among others. |
Foreign currency translation and transactions | Foreign currency translation and transactions The functional currency of the Company is the US$. The Company’s subsidiaries, VIEs and subsidiaries of VIEs determined their functional currency based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are remeasured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included as a component of “Foreign exchange gain (loss), net” in the consolidated statements of comprehensive income (loss). |
Convenience translation | Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.9618 to US$1.00 on December 31, 2019 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Business combinations and noncontrolling interests | Business combinations and noncontrolling interests Except for business combination under common control, the Group accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations In a business combination achieved in stages, the Group remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and noncontrolling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. For the Company’s majority-owned subsidiaries and VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated statements of comprehensive income (loss) includes the net income (loss) attributable to noncontrolling interests. The cumulative results of operations attributable to noncontrolling interests are recorded as noncontrolling interests in the Group’s consolidated balance sheets. |
Cash and cash equivalents | Cash and cash equivalents Cash consists of cash on hand and bank deposits, which are unrestricted to withdrawal and use. All highly liquid investments with original stated maturity of three months or less are classified as cash equivalents. |
Restricted cash | Restricted cash Restricted cash consists primarily of the cash reserved in escrow accounts for the remaining payments in relation to business acquisition of RMB3,480 and nil as of December 31, 2018 and 2019, respectively, the cash pledged as collateral for a business credit card of RMB2,128 and RMB2,163 (US$311) as of December 31, 2018 and 2019, respectively, and the cash reserved in third-party trust account of RMB382 and RMB332 (US$48) as of December 31, 2018 and 2019, respectively. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Group generally does not require collateral from its customers. The Group maintains allowances for doubtful accounts for estimated losses resulting from the failure of customers to make payments on time. The Group reviews the accounts receivable on a periodic basis and makes specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Group considers many factors, including the customer’s payment history, its current credit-worthiness and current economic trends. |
Inventories, net | Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value, and are recorded in “Prepayments and other current assets”. Cost of inventories is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventories to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs of inventories are recorded in cost of revenues in the consolidated statements of comprehensive income (loss). |
Derivative Instruments | Derivative Instruments ASC topic 815 (“ASC 815”), Derivatives and Hedging |
Investments | Investments Short-term investments All highly liquid investments with original maturities of greater than three months, but less than 12 months, are classified as short-term investments. Investments that are expected to be realized in cash during the next 12 months are also included in short-term investments. Investment in debt securities The Group accounts for its investments in debt securities in accordance with ASC 320-10, Investments—Debt Securities: Overall “held-to-maturity”, “available-for-sale”, ASC 320-10. The debt securities that the Group has positive intent and ability to hold to maturity are classified as held-to-maturity held-to-maturity 320-10. more-likely-than-not Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Unrealized holding gains and losses for trading securities are included in earnings. Debt investments not classified as trading or as held-to-maturity available-for-sale Available-for-sale available-for-sale Investment in equity securities The Group accounts for its investments in common stock or in-substance 323-10, Investments—Equity Method and Joint Ventures: Overall Financial Instruments: Fair Value Option (“ASC 825”) . The Group applies the equity method of accounting that is consistent with ASC 323-10 323-10. The Group has elected the fair value option when it initially recognizes an equity method investment as the Group determined the fair value of this investment better represents the value of the underlying assets. Such election is irrevocable, and can be applied to financial assets on an individual basis at initial recognition. Any changes in fair value are recognized in earnings in the consolidated statements of comprehensive income (loss). Prior to adopting ASC 321, Investments—Equity Securities Investments-Other: Cost Method Investments The Group adopted ASC 321, Investments—Equity Securities Fair Value Measurements and Disclosures For equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in earnings equal to the difference between the carrying value and fair value. |
Fair value measurements of financial instruments | Fair value measurements of financial instruments Accounting guidance establishes 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. Accounting guidance establishes three levels of inputs that may be used to measure fair value. Financial instruments primarily consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, due from and due to related parties, other receivables, long-term investments, accounts payable and other current liabilities. The carrying amounts of these financial instruments, except for long-term investments approximate their fair values because of their generally short-term maturities. The Group, with the assistance of an independent third-party valuation firm, determined the estimated fair value of its equity investments using the alternative measurement and equity method investment with fair value option elected. |
Property and equipment | Property and equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated useful life Electronic equipment 2-3 years Office equipment and fixtures 5 years Motor vehicles 4 years Leasehold improvements Lesser of term of the lease or the Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the assets and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income (loss). All direct and indirect costs that are related to the construction of fixed assets and incurred before the assets are ready for their intended use are capitalized as construction in progress. Construction in progress is transferred to specific fixed assets items and depreciation of these assets commences when they are ready for their intended use. |
Goodwill | Goodwill The Group assesses goodwill for impairment in accordance with ASC 350, Intangibles—Goodwill and Other: Goodwill 350-20”), The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step 350-20. more-likely-than-not two-step two-step On disposal of a portion of reporting unit that constitutes a business, the attributable amount of goodwill is included in the determination of the amount of profit or loss on disposal. When the Group disposes of a business within the reporting unit, the amount of goodwill disposed is measured based on the relative fair value of the business disposed and the portion of the reporting unit retained. This relative fair value approach is not used when the business to be disposed was not integrated into the reporting unit after its acquisition, in which case the current carrying amount of the acquired goodwill should be included in the carrying amount of the business to be disposed. |
Intangible assets | Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination were recognized initially at fair value at the date of acquisition. Intangible assets with finite useful lives are amortized using a straight-line method of amortization that reflects the estimated pattern in which the economic benefits of the intangible asset are to be consumed. The estimated useful life for the intangible assets is as follows: Estimated Customer relationship 2-6 years Trademarks 3-10 years Technology 1-10 years Online game licenses 1-5 years User base 1 year Domain names 1-10 years Platform 5 years If an intangible asset is determined to have an indefinite life, it should not be amortized until its useful life is determined to be no longer indefinite. As of December 31, 2018 and 2019, the Group did not have any intangible assets with an indefinite life. |
Impairment of long-lived assets and intangible assets | Impairment of long-lived assets and intangible assets The Group evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350-30, Intangibles—Goodwill and Other: General Intangibles Other than Goodwill |
Treasury stock | Treasury stock Treasury stock represents ordinary shares repurchased by the Company that are no longer outstanding and are held by the Group. Treasury stock is accounted for under the cost method. Under this method, repurchase of ordinary shares was recorded as treasury stock at historical purchase price. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in paid-in |
Revenue recognition | Revenue recognition The Group adopted ASC 606, Revenue from Contracts with Customers Revenue Recognition Starting from January 1, 2018, value added taxes (“VAT”) was reclassified from cost of revenue to net against revenues in accordance with ASC 606. Other than the presentation of VAT, the impact from adopting ASC 606 was not material to the Group’s consolidated financial statements as of and for the year ended December 31, 2018. The Group generates its revenues primarily through utility products and related services, mobile entertainment, AI and others. The Group recognizes revenue when it has approval and commitment from the customer, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable . The following table presents the Company’s revenues disaggregated by revenue source: For the year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Revenues: Utility products and related services 3,439,563 3,119,483 1,573,030 225,952 Mobile entertainment Mobile game business 624,013 925,003 1,172,944 168,483 Content-driven products 872,430 853,864 698,599 100,347 AI and others 38,751 83,355 143,122 20,558 Total consolidated revenues 4,974,757 4,981,705 3,587,695 515,340 ( Online advertising Online advertising revenue is primarily derived from displaying advertising customer’s advertisements on the Group’s online platforms including duba.com and other websites, browsers, PC and mobile applications, and to a lesser extent, on third-party advertising publishers’ websites or mobile applications. The Group has three general pricing models for its advertising products: cost over a time period, cost for performance basis and cost per impression basis. For advertising contracts over a time period, the Group generally recognizes revenue ratably over time, because the customer simultaneously receives and consumes the benefits as the Group performs throughout a fixed contract term. For contracts that are charged on the cost for performance basis, the Group charges an agreed-upon fee to its customers determined based on the effectiveness of advertising links, which is typically measured by clicks, transactions, installations, user registrations, and other actions originating from the Group’s online platforms. Revenue is recognized at a point in time when there is an effective click, transaction, installations, user registrations, and other actions originating from the Group’s online platforms. For contracts that are charged on the cost per impression basis, the Group recognizes the revenue at a point in time when the impressions are delivered. For online advertising services arrangement involving third-party advertising publishers’ websites or mobile publications, the Group recognizes gross revenue the amount of fees received or receivable from customers as the Group has control over the advertising services before they are transferred to the customer, and therefore, the Company is not arranging for the advertising services to be provided by third parties on their internet properties. Revenue for online advertising services is recognized at a point in time when all the revenue recognition criteria are met. Payments made to the third-party advertising publishers or content providers are included in cost of revenues. Advertising agency services The Group provides advertising agency services by arranging advertisers to purchase various advertisement products from certain online networks. The Group receives from the online network performance-based commissions, which are determined based on a pre-specified pre-determined Internet security services The Group markets and distributes its off-the-shelf Other utility products related services Other utility products related services primarily comprise of the sale of office application software. Revenue for perpetual license is recognized at a point in time when control transfers to the customer, which generally occurs when products are made available to customers. (2) Mobile entertainment Mobile games The Group develops several popular mobile games and operates some games exclusively licensed from third-party developers, which attracted a massive user base and provide ample advertising revenue opportunities. Similar with monetization method for the mobile utility products, the Group derives advertising revenues by displaying advertisements on mobile games. Advertisers purchase advertising services directly from the Group or through third-party partnering mobile advertising platforms. Revenue is recognized at a point in time when an advertisement is displayed to users, while impressions are delivered. The Group sells both perpetual and consumable in-game in-game in-game in-game The Group tracks the in-game log-in Commission fees paid to distribution platforms and payment channels and the fees shared by the third-party game developers are recorded as cost of revenues. Online live broadcast services The Group creates and offers virtual items to be used by users on mobile live broadcast application “LiveMe”, which was operated and maintained by the Group. All “LiveMe” live video shows are available free of charge and fans can purchase virtual items on the platform with virtual currencies to support their favorite performers. The Group recognizes revenue from LiveMe on a gross basis as it has control over the fulfillment of providing mobile live broadcasts on the LiveMe platform, and records payments to the performers and third-party payment platforms as cost of revenues. When virtual currencies are converted into virtual items which are consumed simultaneously, performers receive a certain number of virtual diamonds as a result. When performers receive virtual diamonds, they have a choice to either cash out the virtual diamonds or convert them into virtual currencies and continue to consume the virtual currencies on the platform. Since the performers can convert the virtual items into cash and recharge into their account (if they do) or directly convert into virtual currencies, the Group believes that the conversion into virtual currencies is analogous to recharge by cash and revenue should be recognized when virtual currencies converted from virtual items are consumed. Proceeds received from users for the sales of virtual currencies are recorded as contract liability, representing prepayments received from users in the form of the Group’s virtual currency not yet converted into virtual items. Revenue recognized is based on the weighted average unit price of virtual currencies and the quantities of virtual currencies converted into virtual items. The weighted average unit price of virtual currencies is calculated on a monthly basis as the sum of the contract liability at the beginning of the month, proceeds received during the month and the cash value of the virtual diamonds converted into virtual currencies divided by the sum of the virtual currencies balance at the beginning of the month plus the quantity of virtual currencies generated during the month. The Group ceases to provide this service as Live.me was deconsolidated on September 30, 2019 (Note 3). (3) AI and others AI and other revenue primary comprise of the sale of AI hardware products and technical consulting services. The Group recognizes revenue generally at a point in time for the sale of AI hardware products when the products are delivered to customers. Technical consulting services are recognized over time because the customer simultaneously receives and consumes the benefits as the Group performs throughout a fixed term. (4) Other revenue recognition related policies For arrangements that include multiple performance obligations, the Group would evaluate all the performance obligations in the arrangement to determine whether each performance obligation is distinct in the context of contract. Consideration is allocated to each performance obligation based on its standalone selling price. If a promised good or service does not meet the criteria to be considered distinct in the context of contract, it is combined with other promised goods or services until a distinct bundle of goods or services exists. The Group provides sales incentives to customers which entitle them to receive reductions in the price. The Group accounts for these incentives granted to customers as variable consideration and records it as reduction of revenue. The amount of variable consideration is measured based on the most likely amount of incentives to be provided to customers. The Group believes that there will not be significant changes to its estimate of variable consideration. |
Deferred revenue | Deferred revenue The Group recognize s s , respectively. |
Cost of revenues | Cost of revenues Cost of revenues primarily consists of traffic acquisition cost, bandwidth and cloud service costs, content and channel costs associated with online live broadcast and mobile game, royalty fees, salaries and benefits, share-based compensation expenses, depreciation of equipment, amortization of intangible assets and cost of products sold. |
Selling and marketing expenses | Selling and marketing expenses Selling and marketing expenses consist primarily of advertising and promotional expenses, staff costs, share-based compensation expenses and other related incidental expenses that are incurred directly to attract or retain users and customers for the Group’s websites, applications, software and online platforms. Advertising and promotional expenses are expensed when incurred. For the years ended December 31, 2017, 2018 and 2019, advertising and promotional expenses were RMB1,380,913, RMB1,646,378 and RMB1,305,720 (US$187,555), respectively. |
Research and development expenses | Research and development expenses Research and development consist primarily of employee costs and rental expenses related to personnel involved in the development and enhancement of the Group’s service offerings on its websites and mobile applications and amortization of intangible assets used in research and development. The Group expenses these costs as incurred, unless such costs qualify for capitalization as software development costs, including (i) preliminary project is completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) they result in significant additional functionality in the Group’s products. Capitalized software development costs were not material for all periods presented. |
Government subsidies | Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments, for operating a business in their jurisdictions or conducting research and development projects pursuant to specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. For the government subsidies with non-operating |
Leases | Leases The Group adopted ASU No. 2016-02, Leases (Topic 842) 2016-02”) non-lease The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use Upon adoption, the Group recognized operating lease right-of-use assets of RMB216,540 (US$31,104) and total lease liabilities of RMB218,077 (US$31,325) for operating leases as of January 1, 2019. The impact of adopting ASU 2016-02 right-of-use RMB183,563 (US$26,367 ), and total operating lease liabilities of RMB180,104 (US$25,870), including current portion of RMB58,503 (US$8,404) recorded in “Accrued expense and other current liabilities” and non-current portion of RMB121,601 (US$17,466) recorded in “Other non-current liabilities”. |
Comprehensive income | Comprehensive income Comprehensive income is defined to include all changes in shareholders’ equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220-10, Comprehensive Income: Overall |
Income taxes | Income taxes The Group accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not The Group applies ASC 740, Accounting for Income Taxes non-current The Group’s estimated liability for unrecognized tax benefits and the related interest and penalties are periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements. Additionally, in future periods, changes in facts and circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which they occur. |
Share-based compensation | Share-based compensation The Group accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation: Overall In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or equity award. All grants of share-based awards to employees classified as equity awards are recognized in the financial statements based on their grant date fair values. The Group has elected to recognize share-based compensation using the accelerated method, for all share-based awards granted with graded vesting based on service conditions. The Group, with the assistance of an independent third-party valuation firm, determined the fair value of share-based awards granted to employees. Determining the fair value of share-based awards of the Group required complex and subjective judgments regarding its projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. A change in any of the terms or conditions of share options is accounted for as a modification of share-based awards. The Group calculates the incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested share-based awards, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested share-based award, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. |
Earnings per share | Earnings (loss) per share Earnings (loss) per share are calculated in accordance with ASC 260-10, Earnings per Share: Overall two-class two-class Diluted earnings per share is calculated by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of the vesting of restricted shares and the exercising of restricted shares with an option feature using the treasury stock method. The computation of the dilutive earnings (loss) per share of Class A ordinary share assumes the conversion of Class B ordinary shares. |
Contingencies | Contingencies The Group records accruals for certain of its outstanding legal proceedings or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Group evaluates the developments in legal proceedings or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Group discloses the amount of the accrual if it is material. |
Segment reporting | Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is the chief executive officer. The Group historically had one single operating and reportable segment and starting from March 31, 2017, the Company reorganized its operation into three segments as set out in Note 12. |
Concentration of risks | Concentration of risks Concentration of credit risk Financial instruments that are potentially subject to credit risk consist of cash and cash equivalents, restricted cash, short-term investments, available-for-sale available-for-sale Under PRC law, it is generally required that a commercial bank in the PRC that holds third-party cash deposits protect the depositors’ rights over and interests in their deposited money; PRC banks are subject to a series of risk control regulatory standards; and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. Accounts receivable and other receivables are both typically unsecured and are derived from revenue earned from customers or cash receivables on behalf of publishers. The risk is mitigated by credit evaluations the Group performs on its ongoing credit evaluations of its customers’ financial conditions and ongoing monitoring process of outstanding balances. The Group maintains reserves for estimated credit losses and these losses have generally been within expectations. Business, customer, political, social and economic risks The Group participates in a dynamic high technology industry and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations or cash flows: changes in the overall demand for services and products; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in bandwidth suppliers; changes in certain strategic relationships or customer relationships; regulatory considerations; copyright regulations; and risks associated with the Group’s ability to attract and retain employees necessary to support its growth. For the year ended December 31, 2017, approximately 15.2%, 11.1% and 10.6% of the Group’s total revenue were derived from Google, Facebook and Baidu, respectively. For the year ended December 31, 2018, approximately 14.4% and 12.1% of the Group’s total revenue were derived from Google and Baidu, respectively. For the year ended December 31, 2019, approximately 13.8% of the Group’s total revenue were derived from Google, and approximately 8.1% of the Group’s total revenue from purchase and consumption of virtual items by users via Google as a channel in 2019. The Group’s operations could be adversely affected by significant political, economic and social uncertainties in the PRC. Internet related businesses are subject to significant restrictions under current PRC laws and regulations. Specifically, foreign investors are not allowed to own more than 50% equity interests in any Internet Content Provider (“ICP”) business. Currency convertibility risk A significant portion of the Group’s operating activities as well as the assets and liabilities are denominated in RMB. The Group’s financing activities are denominated in US$. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of PRC (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. Foreign currency exchange rate risk While the Group’s reporting currency is RMB, a portion of the Group’s revenues and costs are generated and denominated in US$. As a result, the Group is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between U.S. dollar and RMB. If the US$ depreciates against the RMB, the value of the Group’s US$ revenues expressed in the RMB financial statements will decline. On June 19, 2010, the People’s Bank of China announced the end of the RMB’s de facto peg to US$, a policy which was instituted in late 2008 in the face of the global financial crisis, to further reform the RMB exchange rate regime and to enhance the RMB exchange rate flexibility. The appreciation of the RMB against US$ was approximately 6.3% for the year ended December 31, 2017, the depreciation of the RMB against US$ was approximately 5.7% and 4.1% for the years ended December 31, 2018 and 2019. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments ASU 2016-13 replaces ASU2016-13 is 2016-13 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of percentage of ownership in subsidiaries, its VIEs and its equity investees | Details of the Company’s principal subsidiaries and VIEs as of December 31, 2019 are as follows: Company Date of incorporation/ registration Place of incorporation/ registration Percentage of ownership (i) Principal activities Princip al Cheetah Technology Corporation Limited (“Cheetah Technology”) August 26, 2009 Hong Kong 100% Investment holding, provision of utility products and related services, mobile entertainment services Beijing Kingsoft Internet Security Software Co., Ltd. (“Beijing Security”) November 30, 2009 The PRC 100% Provision of mobile entertainment services and research and development of online applications, sale of AI products Conew Network Technology (Beijing) Co., Ltd. (“Conew Network”) March 19, 2009 The PRC 100% Research and development of mobile applications and provision of utility products and related service Hongkong Zoom Interactive Network Marketing Technology Limited (“HK Zoom”) July 4, 2014 Hong Kong 100% Provision of utility products and related services Cheetah Information Technology Company Limited (“Cheetah Information”) March 9, 2015 Hong Kong 100% Investment holding Princip al Cheetah Mobile Singapore Pte. Ltd. (“Cheetah Mobile Singapore”) May 27, 2015 Singapore 100% Provision of utility products and related services and mobile entertainment services Cheetah Mobile Hong Kong Limited (“Cheetah Mobile Hong Kong”) February 24, 2016 Hong Kong 100% Investment holding Beijing Chibao Technology Co., Ltd. December 6, 2018 The PRC 82.5% Provision of mobile entertainment services Beijing Kingsoft Cheetah Technology Co., Ltd. April 30, 2015 The PRC 100% Provision of products and related services and mobile entertainment services Jingdezhen Jibao Information Service Co., August 10, 2017 The PRC 100% Provision of utility products and related services, sale of AI products Japan Kingsoft Inc. (“Kingsoft Japan”) March 9, 2005 Japan 41.9% Provision of utility products and related services Zhuhai Baoqu Technology Co., Ltd. July 18, 2018 The PRC 75.0% Provision of utility products and related services VIEs Beijing Conew Technology Development Co., Ltd. (“Beijing Conew”) December 22, 2005 The PRC Nil Dormant Beijing Cheetah Mobile Technology Co., Ltd. (“Beijing Mobile”) April 15, 2009 The PRC Nil Provision of utility products and related services, mobile entertainment services Beijing Cheetah Network Technology Co., Ltd. (“Beijing Network”) July 18, 2012 The PRC Nil Provision of utility products and related services, mobile entertainment services (i) Percentage of ownership is calculated on fully diluted basis. |
Schedule of carrying amounts and classifications of the assets and liabilities of the VIEs | The assets and liabilities of the VIEs are as follows: As of December 31, 2018 2019 RMB RMB US$ Cash and cash equivalents 49,623 42,809 6,149 Restricted cash 526 476 68 Short-term investments — 4,000 575 Accounts receivable, net 25,346 107,199 15,398 Prepayments and other current assets 49,739 74,384 10,685 Due from related parties 425,752 624,600 89,718 Total current assets 550,986 853,468 122,593 Property and equipment, net 12,753 9,393 1,349 Operating lease right-of-use assets — 37,141 5,335 Intangible assets, net 6,926 6,616 950 Goodwill 962 — — Long-term investments 111,836 214,340 30,788 Other non-current assets 2,733 3,384 486 Deferred tax assets 9,250 9,474 1,361 Total non-current assets 144,460 280,348 40,269 Total assets 695,446 1,133,816 162,862 Accounts payable 11,777 10,642 1,529 Accrued expenses and other current liabilities 82,012 100,015 14,366 Due to related parties (i) 387,629 907,481 130,351 Income tax payable 1,945 1,587 228 Total current liabilities 483,363 1,019,725 146,474 Deferred tax liabilities 1,660 3,749 539 Due to related parties (i) 19,596 — — Other non-current liabilities 4,754 32,037 4,602 Total non-current liabilities 26,010 35,786 5,141 Total liabilities 509,373 1,055,511 151,615 (i) As of December 31, 2018, and 2019, the balances due to related parties of the VIEs mainly represented amounts due to subsidiaries of the Group of RMB395,820 and RMB887,178 (US$127,435) respectively, which were eliminated upon consolidation by the Company. |
Schedule of financial performance and cash flows of the VIEs | The financial performance and cash flows of the VIEs are as follows: For the y r 2017 2018 2019 RMB RMB RMB US$ Revenues 369,247 508,576 586,404 84,232 Cost of revenues 232,500 319,297 335,912 48,251 Net income 22,327 33,805 88,559 12,721 Net cash (used in) provided by operating activities (30 ) (12,198 ) 62,401 8,963 Net cash provided by (used in) investing activitie s 23,853 (24,941 ) (69,386 ) (9,967 ) Net cash provided by financing activities — 19,500 — — Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 121 17 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of estimated useful lives of property and equipment | Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated useful life Electronic equipment 2-3 years Office equipment and fixtures 5 years Motor vehicles 4 years Leasehold improvements Lesser of term of the lease or the |
Schedule of estimated useful lives of intangible assets | The estimated useful life for the intangible assets is as follows: Estimated Customer relationship 2-6 years Trademarks 3-10 years Technology 1-10 years Online game licenses 1-5 years User base 1 year Domain names 1-10 years Platform 5 years |
Schedule of Revenue Disaggregated by Revenue Source | For the year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Revenues: Utility products and related services 3,439,563 3,119,483 1,573,030 225,952 Mobile entertainment Mobile game business 624,013 925,003 1,172,944 168,483 Content-driven products 872,430 853,864 698,599 100,347 AI and others 38,751 83,355 143,122 20,558 Total consolidated revenues 4,974,757 4,981,705 3,587,695 515,340 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Unrealized and Realized Gains and Losses of Equity Securities | Total unrealized and realized gains and losses of equity securities without readily determinable fair values for the years ended December 31, 2018 and 2019 were as follows: For the year ended December, 31 2018 2019 RMB RMB US$ Gross unrealized gains (upward adjustments) 357,372 78,321 11,250 Gross unrealized losses (impairment) (94,895 ) (180,913 ) (25,987 ) Net unrealized gains and losses on equity securities held 262,477 (102,592 ) (14,737 ) Net realized gains on equity securities sold 319,711 — — Total net gains (losses) recognized in other income, net 582,188 (102,592 ) (14,737 ) |
Summary of unaudited condensed financial information of the Group's equity investments | The Group summarized the unaudited condensed financial information of the Group’s equity investments as a group below in accordance with Rule 4-08 of Regulation S-X: As of December 31, 2018 2019 RMB RMB US$ Balance sheet data: Current assets 166,559 469,712 67,470 Non-current 608,712 862,552 123,898 Current liabilities 5,262 280,790 40,333 Non-current 4,320 15,610 2,242 Redeemable p — 870,001 124,968 For the y 2017 2018 2019 RMB RMB RMB US$ Operating data: Revenues 53,175 24,073 970,017 139,334 Gross profit 43,947 12,830 223,883 32,159 Operating (loss) income (2,372 ) 29,066 (66,751 ) (9,588 ) Net income (loss) 5,849 25,301 (78,146 ) (11,225 ) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of accounts receivable | As of December 31, 2018 2019 RMB RMB US$ Accounts receivable 739,252 578,591 83,109 Allowance for doubtful accounts (83,991 ) (109,315 ) (15,702 ) Accounts re ceivable , net 655,261 469,276 67,407 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of prepayments and other current assets | As of December 31, 2018 2019 RMB RMB US$ Other receivables from advertisers 571,900 659,128 94,678 Advances to suppliers 73,554 83,830 12,041 Prepaid expenses 32,617 50,398 7,239 Inventor ies, net 12,212 31,287 4,494 Receivable from third-party payment platform 121,285 25,994 3,734 Convertible loans 40,428 15,835 2,275 Receivable from equity transferees 61,345 — — Others 151,373 69,637 10,003 Total 1,064,714 936,109 134,464 (i) As of December 31, 2018 and 2019, convertible loan s loan , Consolidation was |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of property and equipment, net | As of December 31, 2018 2019 RMB RMB US$ Electronic equipment 114,332 168,843 24,252 Leasehold improvements 65,084 65,028 9,341 Office equipment and fixtures 27,378 28,374 4,076 Motor vehicles 4,065 4,579 658 Construction in progress 24 2,018 290 Less: Accumulated depreciation 146,964 165,445 23,765 Property and equipment, net 63,919 103,397 14,852 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of intangible assets and accumulated amortization | Intangible assets and the related accumulated amortization were summarized as follows: As of December 31, 2019 Gross Accumulated Accumulated Net carrying RMB RMB RMB RMB US$ Online game licenses 195,903 (128,370 ) (50,417 ) 17,116 2,458 Technology 149,227 (125,350 ) (1,473 ) 22,404 3,219 Platform 76,748 (42,206 ) (34,532 ) 10 1 Customer relationship 49,308 (46,474 ) (2,834 ) — — User base 48,490 (48,490 ) — — — Trademarks 22,824 (17,154 ) (1,279 ) 4,391 631 Domain names 4,234 (3,679 ) — 555 80 Non-compete 1,610 (1,610 ) — — — Total 548,344 (413,333 ) (90,535 ) 44,476 6,389 As of December 31, 2018 Gross Accumulated Accumulated Net carrying RMB RMB RMB RMB Online game licenses 184,216 (109,230 ) (42,730 ) 32,256 Technology 126,404 (115,358 ) — 11,046 Customer relationship 48,623 (45,835 ) (2,788 ) — User base 47,717 (47,717 ) — — Trademarks 21,265 (16,152 ) (1,258 ) 3,855 Platform 75,505 (41,522 ) (33,973 ) 10 Domain names 4,390 (3,136 ) — 1,254 Non-compete 1,610 (1,610 ) — — Total 509,730 (380,560 ) (80,749 ) 48,421 |
Schedule of future amortization expense | Estimated amortization expense relating to the existing intangible assets with finite lives for each of next five years and thereafter is as follows: For the y RMB US$ 2020 13,074 1,877 2021 11,817 1,697 2022 7,427 1,067 2023 6,130 881 2024 1,416 203 Thereafter 4,612 664 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of changes in the carrying amount of goodwill | Utility products Mobile AI and others Total RMB RMB RMB RMB Balance at January 1, 2018 518,585 102,644 12,928 634,157 Deconsolidation of a subsidiary (38,579 ) — (2,566 ) (41,145 ) Foreign exchange effect 20,724 4,101 — 24,825 Balance at December 31, 2018 500,730 106,745 10,362 617,837 Goodwill acquired in business combination — — 10,907 10,907 Deconsolidation of a — (92,025 ) — (92,025 ) Impairment loss (508,198 ) (16,198 ) (21,269 ) (545,665 ) Foreign exchange effect 7,468 1,478 — 8,946 Balance at December 31, 2019 — — — — Balance as of December 31, 2019 in US$ — — — — |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Future lease Payments under Operating Leases | Future lease payments under operating leases as of December 31, 2019 were as follows: For the year ending December 31, RMB US$ 2020 62,380 8,960 2021 50,781 7,294 2022 47,853 6,874 2023 36,336 5,219 2024 2,119 304 Total future lease payments 199,469 28,651 Less: imputed interest 19,365 2,781 Total lease liability balance 180,104 25,870 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2018 2019 RMB RMB US$ Payable to online advertising platforms as agency 523,765 636,745 91,463 Accrued operating expenses 193,648 196,459 28,220 Salary and welfare payable 210,483 165,207 23,731 Accrued advertising, marketing and promotional expenses 288,290 105,695 15,182 Advance received in advertising agency services 53,159 113,988 16,373 Deferred revenue 85,068 93,821 13,477 Operating lease liabilities current portion — 58,503 8,404 Other taxes payable 35,120 30,890 4,437 Accrued bandwidth and cloud service costs 20,960 6,581 945 Others 104,149 96,838 13,909 Total 1,514,642 1,504,728 216,141 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Revenue from Each Segment, Income from Operations | The following tables present the summary of each segment’s revenues, operating income (loss) which were considered as segment operating performance measure, for the years ended December 31, 2017, 2018 and 2019: For the y 2017 2018 2019 RMB RMB RMB US$ Revenues: Utility Products and Related Services 3,439,563 3,119,483 1,573,030 225,952 Mobile Entertainment 1,496,443 1,778,867 1,871,543 268,830 AI and others 38,751 83,355 143,122 20,558 Total consolidated revenues 4,974,757 4,981,705 3,587,695 515,340 Operating income (loss): Utility Products and Related Services 979,447 1,034,968 297,099 42,676 Mobile Entertainment (417,350 ) (312,515 ) (375,278 ) (53,905 ) AI and others (41,901 ) (170,113 ) (359,628 ) (51,657 ) Unallocated expenses(i) (73,316 ) (85,118 ) (673,105 ) (96,687 ) Total consolidated operating (loss) income 446,880 467,222 (1,110,912 ) (159,573 ) (i) Unallocated items include share-based compensation and goodwill impairment which were not allocated to segments. |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of revenues by geographical area | The following tables set forth revenues and property and equipment, net by geographic area: For the year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Revenues: PRC 1,639,248 1,971,113 1,388,107 199,389 Non-PRC(i) 3,335,509 3,010,592 2,199,588 315,951 United States 2,071,646 1,731,490 1,342,021 192,769 Rest of the world(ii) 1,263,863 1,279,102 857,567 123,182 |
Schedule of property and equipment, net by geographical area | As of December 31, 2018 2019 RMB RMB US$ Property and equipment, net: PRC 59,745 100,389 14,420 Non-PRC 4,174 3,008 432 (i) Non-PRC (ii) No individual country, other than disclosed above, exceeded 10% of total revenues for the year ended December 31, 2019. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of income (loss) before income taxes | Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ PRC 242,820 142,077 (589,752 ) (84,713 ) Non-PRC 1,190,445 1,127,646 224,065 32,184 Total 1,433,265 1,269,723 (365,687 ) (52,529 ) |
Schedule of current and deferred portions of income tax expenses | The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive income ( loss Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Current income tax expenses 82,908 108,935 1,923 276 Deferred income tax (benefits) expenses (25,306 ) 8,065 5,981 859 Income tax expenses 57,602 117,000 7,904 1,135 |
Reconciliation of the differences between the statutory tax rate and the effective tax rate for enterprise income tax | A reconciliation of the differences between the statutory tax rate and the effective tax rate for enterprise income tax is as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Income (loss) before income tax 1,433,265 1,269,723 (365,687 ) (52,529 ) Income tax expense computed at the PRC statutory tax rate of 25% 358,316 317,431 (91,423 ) (13,132 ) Effect of different tax rates in different jurisdictions (119,565 ) (192,671 ) (178,059 ) (25,577 ) Effect of tax holiday and preferential tax rates (80,671 ) (61,434 ) 84,520 12,141 Research and development super-deduction (50,223 ) (90,521 ) (105,443 ) (15,146 ) Non-taxable (188,139 ) (46,031 ) (15,804 ) (2,270 ) Non-deductible 71,039 22,561 165,580 23,784 Effect of change in tax rate 7,279 1,176 (7,991 ) (1,148 ) Outside basis difference on investment 9,808 41,386 (30,681 ) (4,406 ) Withholding tax and others 18,149 55,712 (5,470 ) (787 ) Changes in valuation allowance 31,609 69,391 192,675 27,676 Income tax expenses 57,602 117,000 7,904 1,135 (i) Non-taxable (ii) Non-deductible |
Schedule of deferred tax assets and deferred tax liabilities | Deferred taxes were measured using the enacted tax rates for the periods in which the temporary differences are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2018 and 2019 are as follows: As of December 31, 2018 2019 RMB RMB US$ Deferred tax assets: Tax loss carry forward 174,058 177,107 25,440 Equity investment loss 19,297 47,202 6,780 Provision for doubtful accounts 15,520 17,675 2,539 Intangible assets and accrued expenses 9,029 6,787 975 Deferred revenue 2,321 2,153 309 Government subsidies 615 100 14 Share-based compensa tion 151 2,584 371 Others 8,933 7,611 1,093 Less: valuation allowance 141,028 229,268 32,932 Deferred tax assets 88,896 31,951 4,589 Deferred tax liabilities: Outside basis difference on investmen t 110,222 78,211 11,234 Equity method investment — 4,567 656 Long-lived assets arising from business acquisitions 69 69 10 Deferred tax liabilities 110,291 82,847 11,900 |
Reconciliation of the beginning and ending amount of unrecognized tax benefit | A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2018 2019 RMB RMB US$ Balance at January 1 63,252 76,208 10,947 Additions based on tax positions related to current year 12,956 3,853 553 Reversal based on tax positions related to prior years — (12,655 ) (1,818 ) Decrease related to deconsolidation — (1,470 ) (211 ) Balance at December 31 76,208 65,936 9,471 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of material related party transactions | For the year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Services received from: (i ) Kingsoft Group 45,173 19,532 23,804 3,419 Tencent Group 48,094 70,867 73,655 10,580 OrionStar Group — — 16,857 2,421 Xiaomi Group 61,042 7,356 — — Services provided to: (ii ) Tencent Group 58,669 197,992 176,099 25,295 OrionStar Group 10,920 21,903 20,242 2,908 Pixiu Group — 6,900 13,450 1,932 Purchase of products: OrionStar Group ( iii ) — 9,136 98,197 14,105 Loans and investments provided to: OrionStar Group 264,768 203,216 278,693 40,032 Pixiu Group — 33,620 39,973 5,742 Shenzhen Feipai 5,000 13,000 3,000 431 Others — — 59,816 8,592 Capital injection received from: Matrix Partners 151,419 — — — (i) The Group entered into agreements with Kingsoft Group, Tencent Group, OrionStar Group and Xiaomi Group, pursuant to which these entities provided services including corporate, technology support and leasing services to the Group (ii) The Group entered into a series of agreements with Tencent Group and OrionStar Group to provide online marketing services and technical support services. (iii) The Group entered into a distributorship and cooperation agreement with OrionStar Group, pursuant to which the Group bec a |
Amount due from related parties | |
Schedule of material related party transactions | As of December 31, 2018 2019 RMB RMB US$ Live.me Group — 87,302 12,540 Tencent Group 52,338 67,044 9,630 Pixiu Group 39,968 49,788 7,152 OrionStar Group 31,450 42,352 6,083 Kingsoft Group 10,570 3,138 451 Other related parties (i) 13,803 9,164 1,317 Total 148,129 258,788 37,173 (i) As of December 31, 2018 and 2019, the amount of due from related parties included convertible loans of RMB18,000 and RMB21,000 (US$3,016) to a related party. The conversion features and the put option were considered as embedded derivatives that do not meet the criteria to be bifurcated and were accounted for together with the loan receivable. In accordance with ASC 810, Consolidation y |
Amount due to related parties | |
Schedule of material related party transactions | As of December 31, 2018 2019 RMB RMB US$ OrionStar Group 4,732 32,368 4,649 Tencent Group 17,462 29,757 4,274 Live.me Group — 17,509 2,515 Kingsoft Group 11,937 8,683 1,247 Other related parties 3,167 3,893 560 Total 37,298 92,210 13,245 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of assumptions used for grant date fair value under binomial tree option pricing model | The grant date fair value of each share-based award is estimated on the date of grant using the binomial tree option pricing model with the following assumptions used for years presented: Year ended December 31, 20 Year ended December 31, 20 Year ended December 31, 20 Fair value of ordinary share (US$) 0.41 0.69~0.86 0.42~0.94 Risk-free interest rates 1.60% 1.75%~3.10% 2.57%~ 3.73% Expected volatility range 43.4% 50.1%~57.2% 57.2 %~59.2% Expected dividend yield 0% 0% 8.61 %~8.72% Fair value per option granted (US$) 0.41 0.14~0.86 0.22~0.27 |
Schedule of share-based compensation expenses by function | The following table summarizes the total share-based compensation expenses recognized by the Group: Years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Research and development — 8,803 Selling and marketing — 95 General and administrative 10,721 3,107 10,721 12,005 |
Schedule of share-based compensation expense by function | Total share-based compensation expenses recorded by the Group are as follows: Years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Cost of revenues 762 206 524 75 Research and development 20,691 14,224 59,771 8,586 Selling and marketing 39 8,967 3,818 548 General and administrative 51,824 61,721 63,327 9,096 73,316 85,118 127,440 18,305 |
2014 Restricted Share Plan | |
Restricted shares activity | The following table summarizes the Company’s restricted shares with an option feature activity under the 2014 Restricted Shares Plan during the year ended December 31, 2019: Number of Weighted Weighted Weighted Aggregate Outstanding at January 1, 2019 30,652,305 0.22 1.15 5.31 11,835 Granted 6,820,900 0.03 0.60 Forfeited (7,159,989 ) 0.13 0.81 Exercised (4,940,498 ) 0.10 1.08 Modified in August 2019 (9,883,063 ) 0.34 1.05 Outstanding at December 31, 2019 15,489,656 0.15 1.15 4.31 3,331 Vested and expected to vest at December 31, 2019 15,489,656 Exercisable as at December 31, 2019 6,740,544 |
2013 Incentive Scheme | |
Restricted shares activity | The following table summarizes the Group’s restricted shares with an option feature activity under the 2013 Incentive Scheme during the year ended December 31, 2019: Number of Weighted Weighted Weighted Aggregate Outstanding at January 1, 2019 44,791,941 0.33 1.13 5.01 12,546 Granted — — — Forfeited (3,417,123 ) 0.34 1.02 Exercised (2,111,675 ) 0.15 1.59 Modified in August 2019 (6,012,119 ) 0.34 1.10 Outstanding at December 31, 2019 33,251,025 0.34 1.13 4.01 765 Vested and expected to vest at December 31, 2019 33,251,025 Exercisable as at December 31, 2019 33,251,025 |
2011 Share Award Scheme | |
Restricted shares activity | The following table summarizes the restricted shares activity pursuant to the 2011 Share Award Scheme for the year ended December 31, 2019: Number of Weighted average Unvested at January 1, 2019 5,739,320 1.06 Granted 2,189,310 0.37 Vested (2,452,468 ) 1.08 Forfeited (1,409,359 ) 1.05 Unvested at December 31, 2019 4,066,803 0.69 |
Restricted shares with an option feature | 2014 Restricted Share Plan | |
Summary of assumptions used in calculating fair value of options | The grant date fair value of each restricted share with an option feature is estimated on the date of grant using the binomial tree option pricing model with the following assumptions used for years presented: Year ended Year ended Year ended Fair value of ordinary share (US$) 0.84~1.21 0.85~1.29 0.36~0.68 Risk-free interest rates 2.81%~2.99% 3.49%~3.59% 1.70%~3.25% Expected volatility range 55.9%~58.0% 55.5%~57.0% 57.1%~62.9% Expected dividend yield 0% 0% 0% Expected exercise multiple 2.2 2.2 2.2 Fair value per option granted (US$) 0.55~0.93 0.66~1.23 0.36~0.68 |
Restricted shares with an option feature | 2013 Incentive Scheme | |
Summary of assumptions used in calculating fair value of options | The grant date fair value of each restricted share with an option feature is estimated on the date of grant using the binomial tree option pricing model with the following assumptions used for years presented: Year ended December 31, 2017 Year ended December 31, 2018 Year ended December 31, 2019 Fair value of ordinary share (US$) 0.84~1.21 1.06~1.43 — Risk-free interest rates 2.78%~2.99 % 2.97%~3.58 % — Expected volatility range 56.1%~57.5 % 56.3%~57.2 % — Expected dividend yield 0 % 0 % — Expected exercise multiple 2.2 2.2 — Fair value per option granted (US$) 0.53~0.88 0.79~1.15 — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of retained earnings | As of December 31, 2018 2019 RMB RMB US$ PRC statutory reserve funds 38,349 45,806 6,580 Unreserved retained earnings 2,667,621 1,899,132 272,793 Total retained earnings 2,705,970 1,944,938 279,373 |
Schedule of components of accumulated other comprehensive income | The components of accumulated other comprehensive income were Foreign currency Unrealized gains for-sale securities Total RMB RMB RMB Balance at January 1, 2017 227,728 417 228,145 Other comprehensive loss before reclassification (148,304 ) (433 ) (148,737 ) Other comprehensive loss attribute to noncontrolling interests 4,798 — 4,798 Balance at December 31, 2017 84,222 (16 ) 84,206 Other comprehensive income (loss) before reclassification 182,978 (3,734 ) 179,244 Other comprehensive income (14,146 ) — (14,146 ) Balance at December 31, 2018 253,054 (3,750 ) 249,304 Other comprehensive income before reclassification 77,097 10,913 88,010 Other comprehensive loss attribute to noncontrolling interests 459 — 459 Balance at December 31, 2019 330,610 7,163 337,773 Balance at December 31, 2019, in US$ 47,489 1,029 48,518 |
Redeemable noncontrolling int_2
Redeemable noncontrolling interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Redeemable non-controlling interests | The redeemable noncontrolling interests for the years ended December 31, 2018 and 2019 are summarized below: RMB Balance at December 31, 2017 649,246 Accretion 38,601 Balance at December 31, 2018 687,847 Accretion 31,662 Deconsolidation of Live.me (Note 3) (719,509 ) Balance at December 31, 2019 — Balance at December 31, 2019 in US$ — |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of computation of basic and diluted earnings (Losses) per share | Basic and diluted earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2017 2018 2019 Ordinary Ordinary Class A Class A Class B Class B RMB RMB RMB US$ RMB US$ Earnings (loss) per share—basic Numerator: Net income (loss) attributable to Cheetah Mobile Inc. 1,348,194 1,166,909 (97,017 ) (13,937 ) (216,960 ) (31,164 ) Accretion of redeemable noncontrolling interests (13,451 ) (37,714 ) (9,228 ) (1,326 ) (20,637 ) (2,964 ) Dilution effect arising from share-based awards issued by subsidiaries — (14 ) (101 ) (15 ) (225 ) (32 ) Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries 1,334,743 1,129,181 (106,346 ) (15,278 ) (237,822 ) (34,160 ) Denominator: Weighted average number of ordinary shares outstanding 1,394,303,326 1,403,089,609 423,023,853 423,023,853 946,017,565 946,017,565 Earnings (loss) per share—basic 0.9573 0.8048 (0.2514 ) (0.0361 ) (0.2514 ) (0.0361 ) Earnings (loss) per share—diluted Numerator: Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries 1,334,743 1,129,181 (106,346 ) (15,278 ) (237,822 ) (34,160 ) Reallocation of net income as a result of conversion of Class B into Class A ordinary shares — — (237,822 ) (34,160 ) — — Net income (loss) attributable to ordinary shareholders 1,334,743 1,129,181 (344,168 ) (49,438 ) (237,822 ) (34,160 ) Denominator: Weighted average ordinary shares outstanding 1,394,303,326 1,403,089,609 423,023,853 423,023,853 946,017,565 946,017,565 Dilutive effect of Share-based awards 30,851,512 37,325,240 — — — — Conversion of Class B into Class A ordinary shares — — 946,017,565 946,017,565 — — Denominator used for earnings (loss) per share 1,425,154,838 1,440,414,849 1,369,041,418 1,369,041,418 946,017,565 946,017,565 Earnings ( loss 0.9366 0.7839 (0.2514 ) (0.0361 ) (0.2514 ) (0.0361 ) Earnings ( l Denominator used for earnings (loss) per ADS—basic 139,430,333 140,308,961 42,302,385 42,302,385 Denominator used for earnings (loss) per ADS—diluted 142,515,484 144,041,485 136,904,142 136,904,142 Earnings (loss) per ADS—basic 9.5728 8.0478 (2.5140 ) (0.3611 ) Earnings (loss) per ADS—diluted 9.3656 7.8393 (2.5140 ) (0.3611 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of assets and liabilities measured or disclosed at fair value | For the year ended December 31, 2019, assets and liabilities measured or disclosed at fair value are summarized below: Fair value measurement or disclosure Total Fair Total Fair Quoted prices in Significant Significant Total gains RMB US$ RMB RMB RMB RMB Fair value measurement —Recurring: Available-for-sale 146,723 21,075 146,723 10,913 Equity investments with readily determinable fair value 30,743 4,416 30,743 2,853 Equity investments accounted for using fair value option 388,581 55,816 388,581 (102,555 ) Fair value measurement—Non-Recurring : Intangible assets, net 19 3 19 (8,800 ) Goodwill — — — (545,665 ) Equity investments accounted for at fair value using measurement alternative 926,926 133,145 926,926 (102,592 ) Total assets measured at fair value 1,492,992 214,455 30,743 146,723 1,315,526 (745,846 ) For the year ended December 31, 2018, assets and liabilities measured or disclosed at fair value are summarized below: Fair value measurement or disclosure Total Fair Total Fair Quoted prices in Significant Significant Total (losses) RMB US$ RMB RMB RMB RMB Fair value measurement—Recurring: Available-for-sale debt security 133,448 19,409 133,448 (3,732 ) Fair value measurement—Non-Recurring: Intangible assets, net 465 68 465 (12,767 ) Equity investments accounted for at fair value using measurement alternative 559,961 81,443 559,961 281,977 Total assets measured at fair value 693,874 100,920 133,448 560,426 265,478 |
Reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs | The following table presents a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended 2019: Equity RMB Balance as of January 1, 2019 — Addition 497,796 Fair value change (102,555 ) Foreign exchange translation adjustments (6,660 ) Balance as of December 31, 2019 388,581 Balance as of December 31, 2019 in US$ 55,816 |
Schedule of significant unobservable inputs used in the fair value measurement | The significant unobservable inputs used in the fair value measurement and the corresponding impacts to the fair values are pre se Fair value Valuation technique Unobservable inputs Range Equity investments accounted for using fair value option 388,581 Discount cash flow method • Weighted average cost of capital • Sales growth rate 18% (16.2)%~21.5% |
Condensed Financial Informati_2
Condensed Financial Information of the Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Balance Sheet | Balance Sheets As of December 31, 2018 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 318,546 249,586 35,851 Short-term investments — 795,510 114,268 Prepayments and other current assets 16,838 141,230 20,286 Due from related parties 2,312,111 965,477 138,682 Total current assets 2,647,495 2,151,803 309,087 Non-current Intangible assets, net 5 — — Goodwill 62,785 — — Long-term investments 628,888 1007,897 144,776 Investment in subsidiaries 3,064,747 2,836,345 407,415 Total non-current 3,756,425 3,844,242 552,191 Total assets 6,403,920 5,996,045 861,278 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other current liabilities 27,128 26,583 3,819 Due to related parties 836,642 933,466 134,084 Income tax payable 33,499 34,051 4,891 Total current liabilities 897,269 994,100 142,794 Deferred tax liabilities 29,925 69,401 9,969 Other non-current 261 266 38 Total non-current 30,186 69,667 10,007 Total liabilities 927,455 1,063,767 152,801 Shareholders’ equity Class A ordinary shares (par value of US$0.000025 per share; 7,600,000,000 shares authorized; 475,357,217 and 435,084,177 shares issued as of December 31, 2018 and 2019, respectively; 419,253,027 and 431,985,016 shares outstanding as of December 31, 2018 and 2019, respectively) 74 69 11 Class B ordinary shares (par value of US$0.000025 per share; 1,400,000,000 shares authorized; 957,985,982 shares issued and shares outstanding as of December 31, 2018 and 2019, respectively) 156 156 21 Treasury stock ( and nil 8 9 (221,932 ) — — Additional paid-in 2,742,893 2,649,342 380,554 Retained earnings 2,705,970 1,944,938 279,373 Accumulated other comprehensive inco me 249,304 337,773 48,518 Total shareholders’ equity 5,476,465 4,932,278 708,477 Total liabilities and shareholders’ equit y 6,403,920 5,996,045 861,278 |
Condensed Comprehensive Income | Statements of Comprehensive Income (loss) For the y 2017 2018 2019 RMB RMB RMB US$ Revenues 52,053 14,525 — — Cost of revenues (6,919 ) (2,509 ) (5 ) (1 ) Gross profit 45,134 12,016 (5 ) (1 ) Operating expenses Research and development (11,370 ) 545 (858 ) (123 ) Selling and marketing (84 ) — — — General and administrati ve (18,931 ) (28,158 ) (41,872 ) (6,015 ) Impairment of goodwill — — (64,154 ) (9,215 ) Total operating expenses (30,385 ) (27,613 ) (106,884 ) (15,353 ) Equity in profit (loss) of subsidiari es 1,346,556 632,055 (495,735 ) (71,208 ) Interest (expense) income, net (6,525 ) 3,248 21,677 3,114 Foreign exchange (loss) gains, net (3,877 ) 3,551 152 22 Other ( loss (159 ) 604,346 306,006 43,955 Income (loss) before income taxes 1,350,744 1,227,603 (274,789 ) (39,471 ) Income tax expenses (2,550 ) (60,694 ) (39,188 ) (5,630 ) Net income ( loss 1,348,194 1,166,909 (313,977 ) (45,101 ) Other comprehensive (loss) income, net of tax of nil Unrealized (losses) gains on available-for-sale securities, net (433 ) (3,716 ) 10,913 1,568 Foreign currency translation adjustments (143,506 ) 168,814 77,556 11,140 Other comprehensive (loss) income (143,939 ) 165,098 88,469 12,708 Total comprehensive income (loss) 1,204,255 1,332,007 (225,508 ) (32,393 ) |
Condensed Cash Flow Statement | Statements of Cash Flows For the y 2017 2018 2019 RMB RMB RMB US$ Net cash provided by (used in) 40,685 243 (15,258 ) (2,192 ) Net cash provided by investing activities 265,767 339,955 375,584 53,950 Net cash provided by (used in) financing activities 23,929 (526,532 ) (494,055 ) (70,967 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (35,413 ) 66,054 64,769 9,304 Net increase (decrease) in cash, cash equivalents and restricted cash 294,968 (120,280 ) (68,960 ) (9,905 ) Cash, cash equivalents and restricted cash at beginning of the year 143,858 438,826 318,546 45,756 Cash, cash equivalents and restricted cash at end of the year 438,826 318,546 249,586 35,851 |
Organization and Principal Ac_3
Organization and Principal Activities - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Mar. 31, 2020 | Oct. 02, 2017 | |
Variable Interest Entity [Line Items] | ||||
Loans granted to nominee shareholders and VIEs by primary beneficiaries | ¥ 16,800 | $ 2,413 | ||
Chief Executive Officer And Director | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of voting right delegated | 38.00% | |||
Chief Executive Officer And Director | Subsequent Event | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of voting right delegated | 39.90% | |||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | Shareholder voting proxy agreements | ||||
Variable Interest Entity [Line Items] | ||||
Shareholder voting proxy agreement effective term | 10 years | 10 years | ||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | Business operation agreements | ||||
Variable Interest Entity [Line Items] | ||||
Period of notice to terminate the agreement | 30 days | 30 days | ||
Term of business operation agreement | 10 years | 10 years |
Organization and Principal Ac_4
Organization and Principal Activities - Principal subsidiaries of Vies and Equity investees (Detail) | 12 Months Ended | |
Dec. 31, 2019 | [1] | |
Cheetah Technology | ||
Percentage of ownership | 100.00% | |
Beijing Security | ||
Percentage of ownership | 100.00% | |
Conew Network | ||
Percentage of ownership | 100.00% | |
HK Zoom | ||
Percentage of ownership | 100.00% | |
Cheetah Information | ||
Percentage of ownership | 100.00% | |
Cheetah Mobile Singapore | ||
Percentage of ownership | 100.00% | |
Beijing Chibao Technology | ||
Percentage of ownership | 82.50% | |
Beijing Kingsoft Cheetah Technology | ||
Percentage of ownership | 100.00% | |
Jingdezhen Jibao Information | ||
Percentage of ownership | 100.00% | |
Japan Kingsoft | ||
Percentage of ownership | 41.90% | |
Cheetah Mobile Hong Kong | ||
Percentage of ownership | 100.00% | |
Zhuhai Baoqu Technology | ||
Percentage of ownership | 75.00% | |
Beijing Conew | ||
Percentage of ownership | 0.00% | |
Beijing Mobile | ||
Percentage of ownership | 0.00% | |
Beijing Cheetah Network Technology Co Ltd. | ||
Percentage of ownership | 0.00% | |
[1] | Percentage of ownership is calculated on fully diluted basis. |
Organization and Principal Ac_5
Organization and Principal Activities - VIE Arrangements (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Jan. 01, 2019CNY (¥) | Jan. 01, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | ¥ 983,004 | $ 141,200 | ¥ 2,783,843 | |||
Restricted cash | 2,638 | 379 | 6,133 | |||
Short-term investments | 1,369,118 | 196,661 | 930,610 | |||
Accounts receivable, net | 469,276 | 67,407 | 655,261 | |||
Prepayments and other current assets | 936,109 | 134,464 | 1,064,714 | |||
Due from related parties | 233,255 | 33,505 | 126,990 | |||
Total current assets | 3,993,400 | 573,616 | 5,567,551 | |||
Property and equipment, net | 103,397 | 14,852 | 63,919 | |||
Operating lease right-of-use assets | 183,563 | 26,367 | ¥ 216,540 | $ 31,104 | ||
Intangible assets, net | 44,476 | 6,389 | 48,421 | |||
Goodwill | 617,837 | ¥ 634,157 | ||||
Long-term investments | 2,516,724 | 361,504 | 1,849,043 | |||
Other non-current assets | 112,700 | 16,188 | 35,830 | |||
Deferred tax assets | 31,951 | 4,589 | 88,896 | |||
Total non-current assets | 3,018,344 | 433,557 | 2,725,085 | |||
Total assets | 7,011,744 | 1,007,173 | 8,292,636 | |||
Accounts payable | 87,524 | 12,571 | 171,055 | |||
Accrued expenses and other current liabilities | 1,504,728 | 216,141 | 1,514,642 | |||
Due to related parties | 92,210 | 13,245 | 37,298 | |||
Income tax payable | 60,657 | 8,713 | 112,770 | |||
Total current liabilities | 1,745,119 | 250,670 | 1,835,765 | |||
Deferred tax liabilities | 82,847 | 11,900 | 110,291 | |||
Other non-current liabilities | 189,231 | 27,182 | 64,185 | |||
Total non-current liabilities | 272,078 | 39,082 | 174,476 | |||
Total liabilities | 2,017,197 | 289,752 | 2,010,241 | |||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 42,809 | 6,149 | 49,623 | |||
Restricted cash | 476 | 68 | 526 | |||
Short-term investments | 4,000 | 575 | ||||
Accounts receivable, net | 107,199 | 15,398 | 25,346 | |||
Prepayments and other current assets | 74,384 | 10,685 | 49,739 | |||
Due from related parties | 624,600 | 89,718 | 425,752 | |||
Total current assets | 853,468 | 122,593 | 550,986 | |||
Property and equipment, net | 9,393 | 1,349 | 12,753 | |||
Operating lease right-of-use assets | 37,141 | 5,335 | 0 | |||
Intangible assets, net | 6,616 | 950 | 6,926 | |||
Goodwill | 962 | |||||
Long-term investments | 214,340 | 30,788 | 111,836 | |||
Other non-current assets | 3,384 | 486 | 2,733 | |||
Deferred tax assets | 9,474 | 1,361 | 9,250 | |||
Total non-current assets | 280,348 | 40,269 | 144,460 | |||
Total assets | 1,133,816 | 162,862 | 695,446 | |||
Accounts payable | 10,642 | 1,529 | 11,777 | |||
Accrued expenses and other current liabilities | 100,015 | 14,366 | 82,012 | |||
Due to related parties | 907,481 | 130,351 | 387,629 | |||
Income tax payable | 1,587 | 228 | 1,945 | |||
Total current liabilities | 1,019,725 | 146,474 | 483,363 | |||
Deferred tax liabilities | 3,749 | 539 | 1,660 | |||
Due to related parties | 19,596 | |||||
Other non-current liabilities | 32,037 | 4,602 | 4,754 | |||
Total non-current liabilities | 35,786 | 5,141 | 26,010 | |||
Total liabilities | ¥ 1,055,511 | $ 151,615 | ¥ 509,373 |
Organization and Principal Ac_6
Organization and Principal Activities - VIE Arrangements (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Variable Interest Entity [Line Items] | |||
Total current liabilities | ¥ 1,745,119 | $ 250,670 | ¥ 1,835,765 |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | |||
Variable Interest Entity [Line Items] | |||
Total current liabilities | 1,019,725 | 146,474 | 483,363 |
Due to Subsidiaries | Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | |||
Variable Interest Entity [Line Items] | |||
Total current liabilities | ¥ 887,178 | $ 127,435 | ¥ 395,820 |
Organization and Principal Ac_7
Organization and Principal Activities - Financial Performance and Cash flows of the Vies (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenues | ¥ 4,981,705 | ¥ 4,974,757 | ||
Revenues | ¥ 3,587,695 | $ 515,340 | ||
Cost of revenues | 1,241,932 | 178,392 | 1,540,633 | 1,780,089 |
Net income | (313,977) | (45,101) | 1,166,909 | 1,348,194 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 5,506 | 792 | 44,624 | (73,275) |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | ||||
Revenues | 508,576 | 369,247 | ||
Revenues | 586,404 | 84,232 | ||
Cost of revenues | 335,912 | 48,251 | 319,297 | 232,500 |
Net income | 88,559 | 12,721 | 33,805 | 22,327 |
Net cash (used in) provided by operating activities | 62,401 | 8,963 | (12,198) | (30) |
Net cash provided by (used in) investing activities | (69,386) | (9,967) | (24,941) | ¥ 23,853 |
Net cash provided by financing activities | ¥ 19,500 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ¥ 121 | $ 17 |
Summary of Significant of Accou
Summary of Significant of Accounting Policies - Additional Information (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2018CNY (¥) | Jun. 30, 2017Segment | Dec. 31, 2019CNY (¥)Item¥ / shares | Dec. 31, 2019USD ($)Item | Dec. 31, 2018CNY (¥)Segment | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($)$ / shares | Jan. 01, 2019CNY (¥) | Jan. 01, 2019USD ($) | |
Restricted cash | ¥ 2,638 | ¥ 6,133 | $ 379 | ||||||
Cash pledged as collateral for a short-term bank loan | 2,163 | 2,128 | 311 | ||||||
Cash reserved in third-party trust account | ¥ 332 | ¥ 382 | 48 | ||||||
Number of reporting segment | Segment | 3 | 3 | |||||||
Number of pricing models | Item | 3 | 3 | |||||||
Advertising and promotional expenses | ¥ 1,305,720 | $ 187,555 | ¥ 1,646,378 | ¥ 1,380,913 | |||||
Cash and cash equivalents, restricted cash, short-term investments and available-for-sale debt security | ¥ 2,354,760 | 338,240 | |||||||
Maximum ownership percentage in ICP business | 50.00% | 50.00% | |||||||
Appreciation (depreciation) rate of foreign currency exchange (as a percent) | (4.10%) | (4.10%) | (5.70%) | 6.30% | |||||
Operating lease right of use asset | ¥ 183,563 | 26,367 | ¥ 216,540 | $ 31,104 | |||||
Operating lease liability | 180,104 | 25,870 | ¥ 218,077 | $ 31,325 | |||||
Operating Lease, Liability, Current | 58,503 | 8,404 | |||||||
Operating Lease, Liability, Noncurrent | 121,601 | 17,466 | |||||||
Deferred Revenue, Revenue Recognized | ¥ 84,703 | $ 12,167 | ¥ 73,837 | ||||||
Accounting Standards Update 2014-09 [Member] | |||||||||
Cumulative Effect on Retained Earnings | ¥ | ¥ 11,892 | ||||||||
PRC | |||||||||
Cash and cash equivalents, restricted cash, short-term investments and available-for-sale debt security held percentage | 55.20% | 55.20% | |||||||
Non-PRC | |||||||||
Cash and cash equivalents, restricted cash, short-term investments and available-for-sale debt security held percentage | 44.80% | 44.80% | |||||||
Facebook | Total Revenue [Member] | |||||||||
Concentration risk percentage | 11.10% | ||||||||
Baidu | Total Revenue [Member] | |||||||||
Concentration risk percentage | 12.10% | 10.60% | |||||||
Google | Total Revenue [Member] | |||||||||
Concentration risk percentage | 13.80% | 13.80% | 14.40% | 15.20% | |||||
Bytedance | Total Revenue [Member] | |||||||||
Concentration risk percentage | 8.10% | 8.10% | |||||||
Scenario, Previously Reported [Member] | |||||||||
Restricted cash | ¥ 3,480 | $ 0 | |||||||
Cross Currency Interest Rate Contract [Member] | |||||||||
Noon buying rate | (per share) | ¥ 6.9618 | $ 1 |
Summary of Significant of Acc_2
Summary of Significant of Accounting Policies - Estimated Useful Lives of Asset (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Office equipment and fixtures | |
Estimated useful life of the property and equipment | 5 years |
Motor vehicles [Member] | |
Estimated useful life of the property and equipment | 4 years |
Minimum [Member] | Electronic equipment | |
Estimated useful life of the property and equipment | 2 years |
Maximum [Member] | Electronic equipment | |
Estimated useful life of the property and equipment | 3 years |
Summary of Significant of Acc_3
Summary of Significant of Accounting Policies - Estimated Useful Lives of Intangible Asset (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
User base | |
Finite Lived Intangible Asset useful life | 1 year |
Platform | |
Finite Lived Intangible Asset useful life | 5 years |
Minimum [Member] | Customer relationship | |
Finite Lived Intangible Asset useful life | 2 years |
Minimum [Member] | Trademarks | |
Finite Lived Intangible Asset useful life | 3 years |
Minimum [Member] | Technology | |
Finite Lived Intangible Asset useful life | 1 year |
Minimum [Member] | Online game licenses | |
Finite Lived Intangible Asset useful life | 1 year |
Minimum [Member] | Domain names | |
Finite Lived Intangible Asset useful life | 1 year |
Maximum [Member] | Customer relationship | |
Finite Lived Intangible Asset useful life | 6 years |
Maximum [Member] | Trademarks | |
Finite Lived Intangible Asset useful life | 10 years |
Maximum [Member] | Technology | |
Finite Lived Intangible Asset useful life | 10 years |
Maximum [Member] | Online game licenses | |
Finite Lived Intangible Asset useful life | 5 years |
Maximum [Member] | Domain names | |
Finite Lived Intangible Asset useful life | 10 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Revenue by Revenue Source (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenues: | ||||
Revenues | ¥ 4,981,705 | ¥ 4,974,757 | ||
Revenues | ¥ 3,587,695 | $ 515,340 | ||
Utility Products and Related Services [Member] | ||||
Revenues: | ||||
Revenues | 3,119,483 | 3,439,563 | ||
Revenues | 1,573,030 | 225,952 | ||
Mobile Entertainment [Member] | ||||
Revenues: | ||||
Revenues | 1,778,867 | 1,496,443 | ||
Revenues | 1,871,543 | 268,830 | ||
Mobile Entertainment [Member] | Mobile Game Business [Member] | ||||
Revenues: | ||||
Revenues | 925,003 | 624,013 | ||
Revenues | 1,172,944 | 168,483 | ||
Mobile Entertainment [Member] | Content Driven Products [Member] | ||||
Revenues: | ||||
Revenues | 853,864 | 872,430 | ||
Revenues | 698,599 | 100,347 | ||
Al And Other Segments [Member] | ||||
Revenues: | ||||
Revenues | ¥ 83,355 | ¥ 38,751 | ||
Revenues | ¥ 143,122 | $ 20,558 |
Business Combinations and Dec_2
Business Combinations and Deconsolidations - Additional Information (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | Oct. 08, 2018CNY (¥) | Dec. 05, 2017CNY (¥) | Aug. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019¥ / shares |
Business Acquisition [Line Items] | ||||||||||
Cash consideration | ¥ 41,522 | |||||||||
News Republic | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of shares to dispose of (as a percent) | 100.00% | |||||||||
Total consideration from disposal | ¥ 566,044 | |||||||||
Amount in Exchange for equity interest | ¥ 329,710 | |||||||||
Deconsolidation gain | ¥ 839,834 | $ 120,635 | ¥ 232,673 | |||||||
Increase decrease in loss per share if deconsolidation not occurred | (per share) | $ 0.09 | ¥ 0.61 | ||||||||
Youloft HK [Member] | Deconsolidation of Subsidiaries [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of shares to dispose of (as a percent) | 24.80% | |||||||||
Total consideration from disposal | ¥ 97,450 | |||||||||
Ownership interest, subsequent to transaction | 21.90% | |||||||||
Youloft HK [Member] | Deconsolidation of Subsidiaries [Member] | Other Income [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Deconsolidation gain | ¥ 176,442 | |||||||||
Live me [Member] | Deconsolidation of Subsidiaries [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership interest, subsequent to transaction | 49.60% | 49.60% | ||||||||
Business combination in 2019 [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | ¥ 25,000 | $ 3,591 |
Investments - Additional Inform
Investments - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2019CNY (¥) | Nov. 30, 2018CNY (¥) | Dec. 31, 2019CNY (¥)Business | Dec. 31, 2019USD ($)Business | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Investment [Line Items] | |||||||||
Time deposits, constructive notes and convertible loans | ¥ 1,369,118 | ¥ 930,610 | $ 196,661 | ||||||
Equity investments accounted for at fair value using the alternative measurement | 1,895,951 | 1,564,062 | 272,336 | ||||||
Accumulated impairment of equity investments without readily determinable fair value | 618,314 | 432,504 | 88,815 | ||||||
Equity investments measured at fair value using the measurement alternative | 926,926 | $ 133,145 | 556,537 | ||||||
Investment in fair value method investment | 208,192 | ¥ 65,130 | |||||||
Disposal gain of cost method investments | 947,069 | ||||||||
Gain on disposal of fair value method investments | ¥ 300,211 | ||||||||
Gain on dividends received from long-term investment investees | 13,217 | 1,899 | 0 | 58,741 | |||||
Investment in equity investees | 194,473 | 151,533 | 27,934 | ||||||
Aggregate consideration for equity method investments | 4,026 | 5,721 | 14,516 | 578 | |||||
Consideration paid for equity method investments | 3,508,101 | 503,907 | 2,492,046 | 2,000,669 | |||||
Gains (losses) from equity method investments, net | 7,594 | 1,091 | (384) | 495 | |||||
Impairment loss of equity method investments | 0 | 31 | 0 | ||||||
Available for sale equity security, impairment loss | 0 | $ 0 | 6,594 | ||||||
Fair value gain (loss) on the long-term available-for-sale debt security | 4,864 | 699 | (3,732) | 0 | |||||
Unrealized gains for the Equity investments with readily determinable fair value | 78,321 | 11,250 | 357,372 | ||||||
Deconsolidation of Subsidiaries [Member] | Live.me.Inc | |||||||||
Investment [Line Items] | |||||||||
Ownership interest, subsequent to transaction | 49.60% | ||||||||
Equity investments accounted for using fair value option [Member] | Live.me.Inc | |||||||||
Investment [Line Items] | |||||||||
Investment in fair value method investment | ¥ 388,581 | $ 55,816 | |||||||
Other Income [Member] | |||||||||
Investment [Line Items] | |||||||||
Unrealized gains for the Equity investments with readily determinable fair value | 2,853 | 410 | 0 | 0 | |||||
Unrealized Gain (Loss) on Equity Investments using fair value option | (102,555) | (14,731) | 0 | 0 | |||||
Beijing OrionStar | |||||||||
Investment [Line Items] | |||||||||
Investment in fair value method investment | ¥ 262,072 | 203,216 | $ 37,644 | ||||||
Fair value method investment ownership percentage | 38.70% | 38.70% | |||||||
Youloft Hk [Member] | |||||||||
Investment [Line Items] | |||||||||
Investment in fair value method investment | ¥ 93,458 | ||||||||
Fourteen Equity Investees [Member] | |||||||||
Investment [Line Items] | |||||||||
Equity investments measured at fair value using the measurement alternative | ¥ 172,033 | $ 24,711 | |||||||
Number of Businesses Acquired | Business | 14 | 14 | |||||||
Preferred Stock [Member] | Beijing OrionStar | |||||||||
Investment [Line Items] | |||||||||
Investment in fair value method investment | ¥ 264,768 | ||||||||
Fair value method investment ownership percentage | 29.60% | ||||||||
Common Stock [Member] | Youloft Hk [Member] | |||||||||
Investment [Line Items] | |||||||||
Fair value method investment ownership percentage | 21.90% | ||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||
Investment [Line Items] | |||||||||
Available-for-sale financial assets | ¥ 6,976 | ¥ 133,448 | $ 1,002 | ||||||
Fair value gain (loss) on the long-term available-for-sale debt security | (10,913) | 3,732 | |||||||
Bytedance Ltd. | |||||||||
Investment [Line Items] | |||||||||
Investment in fair value method investment | ¥ 329,710 | ||||||||
Ziniu Fund L.P. | |||||||||
Investment [Line Items] | |||||||||
Aggregate consideration for equity method investments | 30,000 | 4,309 | |||||||
Consideration paid for equity method investments | 40,000 | ||||||||
Short-term Investments [Member] | |||||||||
Investment [Line Items] | |||||||||
Interest income, net | 45,993 | $ 6,606 | 38,368 | 16,929 | |||||
Impairment of investment | 3,506 | 504 | 0 | 0 | |||||
Deemed disposal gain on equity method investments | 0 | 0 | 0 | ||||||
Other Comprehensive Income Unrealized Holding Gain Loss On Securities | 6,049 | $ 869 | ¥ 0 | ¥ 0 | |||||
Equity investments with readily determinable fair value | |||||||||
Investment [Line Items] | |||||||||
Investment in fair value method investment | ¥ 28,051 | $ 4,029 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized and Realized Gains and Losses of Equity Securities (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Investment [Line Items] | |||
Gross unrealized gains (upward adjustments) | ¥ 78,321 | $ 11,250 | ¥ 357,372 |
Gross unrealized losses (impairment) | (180,913) | (25,987) | (94,895) |
Net unrealized gains and losses on equity securities held | (102,592) | (14,737) | 262,477 |
Net realized gains on equity securities sold | 319,711 | ||
Total net gains (losses) recognized in other income, net | ¥ (102,592) | $ (14,737) | ¥ 582,188 |
Investment - Unaudited Condense
Investment - Unaudited Condensed Financial Information Equity Investments (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Balance sheet data: | |||||
Current assets | ¥ 469,712 | ¥ 166,559 | $ 67,470 | ||
Non-current assets | 862,552 | 608,712 | 123,898 | ||
Current liabilities | 280,790 | 5,262 | 40,333 | ||
Non-current liabilities | 15,610 | 4,320 | 2,242 | ||
Redeemable preferred shares | 870,001 | $ 124,968 | |||
Operating data: | |||||
Revenues | 970,017 | $ 139,334 | 24,073 | ¥ 53,175 | |
Gross profit | 223,883 | 32,159 | 12,830 | 43,947 | |
Operating (loss) income | (66,751) | (9,588) | 29,066 | (2,372) | |
Net income (loss) | ¥ (78,146) | $ (11,225) | ¥ 25,301 | ¥ 5,849 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Accounts receivable | ¥ 578,591 | $ 83,109 | ¥ 739,252 |
Allowance for doubtful accounts | (109,315) | (15,702) | (83,991) |
Accounts receivable, net | ¥ 469,276 | $ 67,407 | ¥ 655,261 |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Provision for doubtful accounts | ¥ 24,807 | $ 3,563 | ¥ 11,222 | ¥ 11,688 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Other receivables from advertisers | ¥ 659,128 | $ 94,678 | ¥ 571,900 | |
Advances to suppliers | 83,830 | 12,041 | 73,554 | |
Prepaid expenses | 50,398 | 7,239 | 32,617 | |
Inventories, net | 31,287 | 4,494 | 12,212 | |
Receivable from third-party payment platform | 25,994 | 3,734 | 121,285 | |
Convertible loans to third parties | [1] | 15,835 | 2,275 | 40,428 |
Receivable from equity transferees | 61,345 | |||
Others | 69,637 | 10,003 | 151,373 | |
Total | ¥ 936,109 | $ 134,464 | ¥ 1,064,714 | |
[1] | As of December 31, 2018 and 2019, Convertible loans to third parties included a convertible loan of RMB66,000 (US$9,480) to a third party. The conversion features and the put option were considered as embedded derivatives that do not meet the criteria to be bifurcated and were accounted for together with the loan receivable. In accordance with ASC 810, Consolidation, the third-party is a variable interest entity, as it does not have sufficient equity at risk to fully fund the construction of all assets required for principal operations. As of December 31, 2018, RMB58,000 of the convertible loan was impaired and the Group’s maximum exposure to loss as a result of the impairment was RMB8,000, which also equals to the carrying amount of the convertible loan to a third party. As of December 31, 2019, the convertible loan was fully impaired. The Group is not considered as the primary beneficiary, as it does not have power to direct the activities of the third-party retail company that most significantly impact its economic performance. |
Prepayments and Other Current_4
Prepayments and Other Current Assets (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | ||
Convertible loan | [1] | ¥ 40,428 | ¥ 15,835 | $ 2,275 |
Convertible loan receivables [member] | ||||
Loan receivable, impairment loss | 58,000 | |||
Maximum exposure to loss | 8,000 | |||
Third-party retail company [Member] | ||||
Convertible loan | ¥ 66,000 | ¥ 66,000 | $ 9,480 | |
[1] | As of December 31, 2018 and 2019, Convertible loans to third parties included a convertible loan of RMB66,000 (US$9,480) to a third party. The conversion features and the put option were considered as embedded derivatives that do not meet the criteria to be bifurcated and were accounted for together with the loan receivable. In accordance with ASC 810, Consolidation, the third-party is a variable interest entity, as it does not have sufficient equity at risk to fully fund the construction of all assets required for principal operations. As of December 31, 2018, RMB58,000 of the convertible loan was impaired and the Group’s maximum exposure to loss as a result of the impairment was RMB8,000, which also equals to the carrying amount of the convertible loan to a third party. As of December 31, 2019, the convertible loan was fully impaired. The Group is not considered as the primary beneficiary, as it does not have power to direct the activities of the third-party retail company that most significantly impact its economic performance. |
Prepayments and Other Current_5
Prepayments and Other Current Assets - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Provision for doubtful accounts receivable | ¥ 24,807 | $ 3,563 | ¥ 11,222 | ¥ 11,688 | |
Inventory Valuation Reserves | 2,800 | 149 | 0 | $ 402 | |
Prepaid Expenses and Other Current Assets [Member] | |||||
Provision for doubtful accounts receivable | ¥ 109,408 | $ 15,715 | ¥ 6,292 | ¥ 1,299 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Less: Accumulated depreciation | ¥ 165,445 | $ 23,765 | ¥ 146,964 |
Property and equipment, net | 103,397 | 14,852 | 63,919 |
Electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 168,843 | 24,252 | 114,332 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 65,028 | 9,341 | 65,084 |
Office equipment and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 28,374 | 4,076 | 27,378 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | 4,579 | 658 | 4,065 |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, gross | ¥ 2,018 | $ 290 | ¥ 24 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expenses | ¥ 37,382 | $ 5,370 | ¥ 40,244 | ¥ 45,156 |
Intangible Assets and Related A
Intangible Assets and Related Accumulated Amortization (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | ¥ 548,344 | ¥ 509,730 | |
Accumulated amortization | (413,333) | (380,560) | |
Accumulated impairment | (90,535) | (80,749) | |
Net carrying value, finite-lived | 44,476 | $ 6,389 | 48,421 |
Online game licenses | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 195,903 | 184,216 | |
Accumulated amortization | (128,370) | (109,230) | |
Accumulated impairment | (50,417) | (42,730) | |
Net carrying value, finite-lived | 17,116 | 2,458 | 32,256 |
Technology | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 149,227 | 126,404 | |
Accumulated amortization | (125,350) | (115,358) | |
Accumulated impairment | (1,473) | ||
Net carrying value, finite-lived | 22,404 | 3,219 | 11,046 |
Platform | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 76,748 | 75,505 | |
Accumulated amortization | (42,206) | (41,522) | |
Accumulated impairment | (34,532) | (33,973) | |
Net carrying value, finite-lived | 10 | 1 | 10 |
Customer relationship | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 49,308 | 48,623 | |
Accumulated amortization | (46,474) | (45,835) | |
Accumulated impairment | (2,834) | (2,788) | |
User base | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 48,490 | 47,717 | |
Accumulated amortization | (48,490) | (47,717) | |
Trademarks | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 22,824 | 21,265 | |
Accumulated amortization | (17,154) | (16,152) | |
Accumulated impairment | (1,279) | (1,258) | |
Net carrying value, finite-lived | 4,391 | 631 | 3,855 |
Domain names | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 4,234 | 4,390 | |
Accumulated amortization | (3,679) | (3,136) | |
Net carrying value, finite-lived | 555 | $ 80 | 1,254 |
Noncompete Agreements | |||
Intangible Assets [Line Items] | |||
Gross carrying value, finite-lived | 1,610 | 1,610 | |
Accumulated amortization | ¥ (1,610) | ¥ (1,610) |
Intangible Assets Net - Additio
Intangible Assets Net - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Intangible Assets [Line Items] | ||||
Impairment loss on intangible assets | ¥ 8,800 | $ 1,264 | ¥ 12,767 | ¥ 38,862 |
Amortization expense of intangible assets | ¥ 28,086 | $ 4,034 | ¥ 39,863 | ¥ 91,145 |
Intangible Assets Estimated Amo
Intangible Assets Estimated Amortization Expense (Detail) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||
2020 | ¥ 13,074 | $ 1,877 |
2021 | 11,817 | 1,697 |
2022 | 7,427 | 1,067 |
2023 | 6,130 | 881 |
2024 | 1,416 | 203 |
Thereafter | ¥ 4,612 | $ 664 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Goodwill and Intangible Asset Impairment | ¥ 545,665 | $ 78,380 |
Goodwill (Detail)
Goodwill (Detail) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Beginning balance | ¥ 617,837 | ¥ 634,157 | |
Goodwill acquired in business combinations | 10,907 | ||
Less: Impairment Loss | (545,665) | ||
Foreign exchange effect | 8,946 | 24,825 | |
Deconsolidation of a subsidiary | (92,025) | (41,145) | |
Ending balance | 617,837 | ||
Utility Products and Related Services [Member] | |||
Beginning balance | 500,730 | 518,585 | |
Less: Impairment Loss | (508,198) | ||
Foreign exchange effect | 7,468 | 20,724 | |
Ending balance | 500,730 | ||
Utility Products and Related Services [Member] | Subsidiaries [Member] | |||
Deconsolidation of a subsidiary | (38,579) | ||
Mobile Entertainment [Member] | |||
Beginning balance | 106,745 | 102,644 | |
Less: Impairment Loss | (16,198) | ||
Foreign exchange effect | 1,478 | 4,101 | |
Ending balance | 106,745 | ||
Mobile Entertainment [Member] | Subsidiaries [Member] | |||
Deconsolidation of a subsidiary | (92,025) | ||
AI and Others [Member] | |||
Beginning balance | 10,362 | 12,928 | |
Goodwill acquired in business combinations | 10,907 | ||
Less: Impairment Loss | ¥ (21,269) | ||
Ending balance | 10,362 | ||
AI and Others [Member] | Subsidiaries [Member] | |||
Deconsolidation of a subsidiary | ¥ (2,566) |
Lease - Additional Information
Lease - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | |
Lease, weighted average remaining lease term | 3 years 8 months 12 days | 3 years 8 months 12 days |
Lease, weighted average discount rate | 4.90% | 4.90% |
Operating lease cost | ¥ 66,609 | $ 9,568 |
Cost of short-term lease contracts | 7,039 | $ 1,011 |
Operating or finance leases capitalized | ¥ 0 |
Lease - Summary of Future lease
Lease - Summary of Future lease Payments under Operating Leases (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Jan. 01, 2019CNY (¥) | Jan. 01, 2019USD ($) |
2020 | ¥ 62,380 | $ 8,960 | ||
2021 | 50,781 | 7,294 | ||
2022 | 47,853 | 6,874 | ||
2023 | 36,336 | 5,219 | ||
2024 | 2,119 | 304 | ||
Total future lease payments | 199,469 | 28,651 | ||
Less: Imputed interest | 19,365 | 2,781 | ||
Total lease liability balance | ¥ 180,104 | $ 25,870 | ¥ 218,077 | $ 31,325 |
Accrued Expenses And Other Liab
Accrued Expenses And Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Payable to online advertising platforms as agency | ¥ 636,745 | $ 91,463 | ¥ 523,765 |
Accrued operating expenses | 196,459 | 28,220 | 193,648 |
Salary and welfare payable | 165,207 | 23,731 | 210,483 |
Accrued advertising, marketing and promotional expenses | 105,695 | 15,182 | 288,290 |
Advance received in advertising agency services | 113,988 | 16,373 | 53,159 |
Deferred revenue | 93,821 | 13,477 | 85,068 |
Operating lease liabilities current portion | 58,503 | 8,404 | |
Other taxes payable | 30,890 | 4,437 | 35,120 |
Accrued bandwidth and cloud service costs | 6,581 | 945 | 20,960 |
Others | 96,838 | 13,909 | 104,149 |
Total | ¥ 1,504,728 | $ 216,141 | ¥ 1,514,642 |
Segment Information - Summary o
Segment Information - Summary of Revenue from Each Segment, Income (Loss) from Operations (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Revenues: | |||||
Revenues | ¥ 4,981,705 | ¥ 4,974,757 | |||
Revenues | ¥ 3,587,695 | $ 515,340 | |||
Operating income (loss): | |||||
Total consolidated operating income (loss) | (1,110,912) | (159,573) | 467,222 | 446,880 | |
Corporate, Non-Segment [Member] | |||||
Operating income (loss): | |||||
Unallocated expenses | [1] | (673,105) | (96,687) | (85,118) | (73,316) |
Utility Products and Related Services [Member] | |||||
Revenues: | |||||
Revenues | 3,119,483 | 3,439,563 | |||
Revenues | 1,573,030 | 225,952 | |||
Utility Products and Related Services [Member] | Operating Segments [Member] | |||||
Operating income (loss): | |||||
Total consolidated operating income (loss) | 297,099 | 42,676 | 1,034,968 | 979,447 | |
Mobile Entertainment [Member] | |||||
Revenues: | |||||
Revenues | 1,778,867 | 1,496,443 | |||
Revenues | 1,871,543 | 268,830 | |||
Mobile Entertainment [Member] | Operating Segments [Member] | |||||
Operating income (loss): | |||||
Total consolidated operating income (loss) | (375,278) | (53,905) | (312,515) | (417,350) | |
Al And Other Segments [Member] | |||||
Revenues: | |||||
Revenues | 83,355 | 38,751 | |||
Revenues | 143,122 | 20,558 | |||
Al And Other Segments [Member] | Operating Segments [Member] | |||||
Operating income (loss): | |||||
Total consolidated operating income (loss) | ¥ (359,628) | $ (51,657) | ¥ (170,113) | ¥ (41,901) | |
[1] | Unallocated items include share-based compensation and goodwill impairment which were not allocated to segments. |
Geographical Information - Sche
Geographical Information - Schedule of Revenues and Property and Equipment (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | ¥ 4,981,705 | ¥ 4,974,757 | ||||
Revenue | ¥ 3,587,695 | $ 515,340 | ||||
PRC | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 1,971,113 | 1,639,248 | ||||
Revenue | 1,388,107 | 199,389 | ||||
Property and equipment, net | 100,389 | 59,745 | $ 14,420 | |||
Non-PRC. | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | [1] | 3,010,592 | 3,335,509 | |||
Revenue | [1] | 2,199,588 | 315,951 | |||
Property and equipment, net | 3,008 | 4,174 | $ 432 | |||
UNITED STATES | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 1,731,490 | 2,071,646 | ||||
Revenue | 1,342,021 | 192,769 | ||||
Rest of the world | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | [2] | ¥ 1,279,102 | ¥ 1,263,863 | |||
Revenue | [2] | ¥ 857,567 | $ 123,182 | |||
[1] | Non-PRC revenue refers to revenues generated by the Group’s operating legal entities incorporated outside China. Such revenues are primarily attributable to customers located outside China based on customers’ registered addresses. | |||||
[2] | No individual country, other than disclosed above, exceeded 10% of total revenues for the year ended December 31, 2019. |
Geographical Information - Sc_2
Geographical Information - Schedule of Revenues and Property and Equipment (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Total Revenue [Member] | Geographic Concentration Risk [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Concentration risk, description | No individual country, other than disclosed above, exceeded 10% of total revenues for the year ended December 31, 2019. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands, ¥ in Millions | Apr. 01, 2018JPY (¥) | Apr. 01, 2016 | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Income Taxes [Line Items] | ||||||||
Paid-in capital | ¥ 2,649,342 | ¥ 2,742,893 | $ 380,554 | |||||
Total deferred tax assets before valuation allowances | 261,219 | 229,924 | 37,522 | |||||
Valuation allowances | 229,268 | 141,028 | 32,932 | |||||
Undistributed earnings | 722,056 | 820,099 | 103,717 | |||||
Taxable losses | 1,321,790 | $ 189,863 | ||||||
Unrecognized tax benefit | 65,936 | 76,208 | ¥ 63,252 | 9,471 | $ 10,947 | |||
Unrecognized tax benefit net against deferred tax loss carryforwards | 25,746 | 3,698 | 35,455 | |||||
Unrecognized tax benefit presented in the other non-current liabilities line item | 40,190 | 5,773 | 40,753 | |||||
Amount of unrecognized tax benefits that if recognized would impact the annual effective tax rate | 40,190 | 40,753 | 5,773 | |||||
Interest related to unrecognized tax benefits | 4,416 | $ 634 | 6,540 | |||||
Interest accrued related to unrecognized tax benefits | 21,165 | 16,749 | 3,040 | |||||
Maximum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Unrecognized deferred income tax liabilities | 72,206 | 82,010 | 10,372 | |||||
Minimum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Unrecognized deferred income tax liabilities | 36,103 | ¥ 41,005 | 5,186 | |||||
HNTE | Reduction in Taxes [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Exemption period for income tax | 3 years | |||||||
New Software Development Enterprise | Reduction in Taxes [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Exemption period for income tax | 2 years | |||||||
Cheetah Mobile America, Mob Inc. and Live.me America | ||||||||
Income Taxes [Line Items] | ||||||||
Unrecognized tax benefit | ¥ 65,936 | ¥ 76,208 | $ 9,471 | |||||
HONG KONG | Cheetah Mobile Hong Kong | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign statutory tax rate | 16.50% | 16.50% | 16.50% | |||||
HONG KONG | Cheetah Information Hong Kong LiveMe | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign statutory tax rate | 16.50% | |||||||
HONG KONG | HK Zoom | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign statutory tax rate | 16.50% | 16.50% | ||||||
SINGAPORE | Cheetah Mobile Singapore | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign statutory tax rate | 17.00% | 17.00% | ||||||
Reduction in tax rate for stated period following the exemption period | 5.00% | |||||||
SINGAPORE | Cheetah Mobile Singapore | Development Expansion Incentive Scheme | ||||||||
Income Taxes [Line Items] | ||||||||
Period for reduction in tax percentage | 10 years | |||||||
JAPAN | Japan Kingsoft | ||||||||
Income Taxes [Line Items] | ||||||||
Foreign statutory tax rate | 23.20% | 23.40% | ||||||
Reduction in tax rate for stated period following the exemption period | 23.20% | |||||||
Paid-in capital | ¥ 8 | |||||||
Foreign statutory tax rate over stated taxable income level | 15.00% | |||||||
JAPAN | Japan Kingsoft | Maximum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Paid-in capital | ¥ 100 | |||||||
PRC | ||||||||
Income Taxes [Line Items] | ||||||||
Statutory rate | 25.00% | 25.00% | 25.00% | 25.00% | ||||
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percent) | 10.00% | 10.00% | ||||||
PRC | Reduction in Taxes [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Withholding tax, reduction | 5.00% | |||||||
PRC | Maximum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Taxable loss expiration Year | 2029 | |||||||
PRC | Minimum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Taxable loss expiration Year | 2020 | |||||||
PRC | New Software Development Enterprise | ||||||||
Income Taxes [Line Items] | ||||||||
Reduction in tax rate for stated period following the exemption period | 50.00% | |||||||
Period for reduction in tax percentage | 3 years | |||||||
Income tax holiday, aggregate dollar amount | ¥ (84,520) | $ (12,141) | ¥ 58,121 | ¥ 67,934 | ||||
Income tax holiday and preferential tax rates, income tax benefits per share | (per share) | ¥ (0.0617) | $ (0.0089) | ¥ 0.0414 | ¥ 0.0487 | ||||
PRC | Beijing Security | HNTE | ||||||||
Income Taxes [Line Items] | ||||||||
Preferential tax rate | 15.00% | 15.00% | ||||||
PRC | Conew Network | HNTE | ||||||||
Income Taxes [Line Items] | ||||||||
Preferential tax rate | 15.00% | 15.00% | ||||||
PRC | Beijing Kingsoft Cheetah Technology Co | HNTE | ||||||||
Income Taxes [Line Items] | ||||||||
Preferential tax rate | 15.00% | 15.00% | ||||||
PRC | Beijing Mobile | HNTE | ||||||||
Income Taxes [Line Items] | ||||||||
Preferential tax rate | 15.00% | 15.00% | ||||||
PRC | Beijing Network | HNTE | ||||||||
Income Taxes [Line Items] | ||||||||
Preferential tax rate | 15.00% | 15.00% |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Portions of Income Tax Expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
PRC | ¥ (589,752) | $ (84,713) | ¥ 142,077 | ¥ 242,820 |
Non-PRC | 224,065 | 32,184 | 1,127,646 | 1,190,445 |
Income (Loss) before income taxes | (365,687) | (52,529) | 1,269,723 | 1,433,265 |
Current income tax expenses | 1,923 | 276 | 108,935 | 82,908 |
Deferred income tax (benefits) expenses | 5,981 | 859 | 8,065 | (25,306) |
Income tax expenses | ¥ 7,904 | $ 1,135 | ¥ 117,000 | ¥ 57,602 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Differences (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | ||
Income (loss) before income tax | ¥ (365,687) | $ (52,529) | ¥ 1,269,723 | ¥ 1,433,265 | |
Income tax expense computed at the PRC statutory tax rate of 25% | (91,423) | (13,132) | 317,431 | 358,316 | |
Effect of different tax rates in different jurisdictions | (178,059) | (25,577) | (192,671) | (119,565) | |
Effect of tax holiday and preferential tax rates | 84,520 | 12,141 | (61,434) | (80,671) | |
Research and development super-deduction | (105,443) | (15,146) | (90,521) | (50,223) | |
Non-taxable income | [1] | (15,804) | (2,270) | (46,031) | (188,139) |
Non-deductible expenses | [2] | 165,580 | 23,784 | 22,561 | 71,039 |
Effect of change in tax rate | (7,991) | (1,148) | 1,176 | 7,279 | |
Outside basis difference on investment | (30,681) | (4,406) | 41,386 | 9,808 | |
Withholding tax and others | (5,470) | (787) | 55,712 | 18,149 | |
Changes in valuation allowance | 192,675 | 27,676 | 69,391 | 31,609 | |
Income tax expenses | ¥ 7,904 | $ 1,135 | ¥ 117,000 | ¥ 57,602 | |
[1] | Non-taxable income mainly consists of gains on disposal of subsidiaries and long-term investments that are not subject to tax under the tax laws of different jurisdictions. | ||||
[2] | Non-deductible expenses mainly consist of share-based compensation expenses, entertainments and other expenses that are not allowed to be deducted under the tax laws of different jurisdictions. |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Differences (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PRC | |||
Statutory rate | 25.00% | 25.00% | 25.00% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Deferred tax assets: | |||
Tax loss carry forward | ¥ 177,107 | $ 25,440 | ¥ 174,058 |
Equity investment loss | 47,202 | 6,780 | 19,297 |
Provision for doubtful accounts | 17,675 | 2,539 | 15,520 |
Intangible assets and accrued expenses | 6,787 | 975 | 9,029 |
Deferred revenue | 2,153 | 309 | 2,321 |
Government subsidies | 100 | 14 | 615 |
Share-based compensation | 2,584 | 371 | 151 |
Others | 7,611 | 1,093 | 8,933 |
Less: valuation allowance | 229,268 | 32,932 | 141,028 |
Deferred tax assets | 31,951 | 4,589 | 88,896 |
Deferred tax liabilities: | |||
Outside basis difference on investment | 78,211 | 11,234 | 110,222 |
Equity method investment | 4,567 | 656 | |
Long-lived assets arising from business acquisitions | 69 | 10 | 69 |
Deferred tax liabilities | ¥ 82,847 | $ 11,900 | ¥ 110,291 |
Income Taxes - Reconciliation_3
Income Taxes - Reconciliation of Unrecognized Tax Benefit (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Balance, beginning | ¥ 76,208 | $ 10,947 | ¥ 63,252 |
Additions based on tax positions related to current year | 3,853 | 553 | 12,956 |
Reversal based on tax positions related to prior years | (12,655) | (1,818) | |
Decrease related to deconsolidation of Live.me | (1,470) | (211) | |
Balance, ending | ¥ 65,936 | $ 9,471 | ¥ 76,208 |
Related Party Transactions (Det
Related Party Transactions (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | ||
Related Party Transaction [Line Items] | ||||||
Amount due from related parties | ¥ 258,788 | ¥ 148,129 | $ 37,173 | |||
Amount due to related parties | 92,210 | 37,298 | 13,245 | |||
Services received from | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [1] | 16,857 | $ 2,421 | |||
Kingsoft Group | ||||||
Related Party Transaction [Line Items] | ||||||
Amount due from related parties | 3,138 | 10,570 | 451 | |||
Amount due to related parties | 8,683 | 11,937 | 1,247 | |||
Kingsoft Group | Services received from | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [1] | 23,804 | 3,419 | 19,532 | ¥ 45,173 | |
Tencent Group | ||||||
Related Party Transaction [Line Items] | ||||||
Amount due from related parties | 67,044 | 52,338 | 9,630 | |||
Amount due to related parties | 29,757 | 17,462 | 4,274 | |||
Tencent Group | Services received from | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [1] | 73,655 | 10,580 | 70,867 | 48,094 | |
Tencent Group | Services provided to | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [2] | 176,099 | 25,295 | 197,992 | 58,669 | |
Xiaomi Group | Services received from | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [1] | 7,356 | 61,042 | |||
OrionStar Group | ||||||
Related Party Transaction [Line Items] | ||||||
Amount due from related parties | 42,352 | 31,450 | 6,083 | |||
Amount due to related parties | 32,368 | 4,732 | 4,649 | |||
OrionStar Group | Services provided to | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [2] | 20,242 | 2,908 | 21,903 | 10,920 | |
OrionStar Group | Loans and investments provided to | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | 278,693 | 40,032 | 203,216 | 264,768 | ||
OrionStar Group | Purchase of products | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [3] | 98,197 | 14,105 | 9,136 | ||
Pixiu Group | ||||||
Related Party Transaction [Line Items] | ||||||
Amount due from related parties | 49,788 | 39,968 | 7,152 | |||
Pixiu Group | Services provided to | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | [2] | 13,450 | 1,932 | 6,900 | ||
Pixiu Group | Loans and investments provided to | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | 39,973 | 5,742 | 33,620 | |||
Shenzhen Feipai | Loans and investments provided to | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | 3,000 | 431 | 13,000 | 5,000 | ||
Matrix Partners | Capital injection received from | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | ¥ 151,419 | |||||
Other Related Parties | ||||||
Related Party Transaction [Line Items] | ||||||
Amount due from related parties | [4] | 9,164 | 13,803 | 1,317 | ||
Amount due to related parties | 3,893 | ¥ 3,167 | 560 | |||
Live.me Group | ||||||
Related Party Transaction [Line Items] | ||||||
Amount due from related parties | 87,302 | 12,540 | ||||
Amount due to related parties | 17,509 | $ 2,515 | ||||
Others | Loans and investments provided to | ||||||
Related Party Transaction [Line Items] | ||||||
Amount | ¥ 59,816 | $ 8,592 | ||||
[1] | The Group entered into agreements with Kingsoft Group, Tencent Group, OrionStar Group and Xiaomi Group, pursuant to which these entities provided services including corporate, technology support and leasing services to the Group. | |||||
[2] | The Group entered into a series of agreements with Tencent Group and OrionStar Group to provide online marketing services and technical support services. | |||||
[3] | The Group entered into a distributorship and cooperation agreement with OrionStar Group, pursuant to which the Group became the exclusive worldwide distributor for OrionStar Group’s robotics products. | |||||
[4] | As of December 31, 2018 and 2019, the amount of due from related parties included convertible loans of RMB18,000 and RMB21,000 (US$3,016) to a related party. The conversion features and the put option were considered as embedded derivatives that do not meet the criteria to be bifurcated and were accounted for together with the loan receivable. In accordance with ASC 810, Consolidation, the related party is a variable interest entities, as it does not have sufficient equity at risk to fully fund the construction of all assets required for principal operations. As of December 31, 2018 and 2019, the convertible loan has been fully impaired. The Group is not considered as the primary beneficiary, as it does not have power to direct the activities of the related-party that most significantly impact its economic performance. |
Related Party Transactions (Par
Related Party Transactions (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Convertible loan | [1] | ¥ 15,835 | $ 2,275 | ¥ 40,428 |
Other Related Parties | ||||
Related Party Transaction [Line Items] | ||||
Convertible loan | ¥ 21,000 | $ 3,016 | ¥ 18,000 | |
[1] | As of December 31, 2018 and 2019, Convertible loans to third parties included a convertible loan of RMB66,000 (US$9,480) to a third party. The conversion features and the put option were considered as embedded derivatives that do not meet the criteria to be bifurcated and were accounted for together with the loan receivable. In accordance with ASC 810, Consolidation, the third-party is a variable interest entity, as it does not have sufficient equity at risk to fully fund the construction of all assets required for principal operations. As of December 31, 2018, RMB58,000 of the convertible loan was impaired and the Group’s maximum exposure to loss as a result of the impairment was RMB8,000, which also equals to the carrying amount of the convertible loan to a third party. As of December 31, 2019, the convertible loan was fully impaired. The Group is not considered as the primary beneficiary, as it does not have power to direct the activities of the third-party retail company that most significantly impact its economic performance. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Provision (reversal) for doubtful accounts | ¥ 9,431 | $ 1,355 | ¥ 105 | ¥ (7,312) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Apr. 24, 2014shares | Jan. 02, 2014shares | May 26, 2011shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation costs of share-based awards | ¥ 44,720 | $ 6,424 | |||||||
Expected period over which unamortized compensation costs is to be recognized | 2 years 10 days | 2 years 10 days | |||||||
Stock options, incremental cost as a result of modification | ¥ 5,117 | $ 735 | |||||||
Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options, incremental cost as a result of modification | 12,510 | 1,797 | |||||||
2014 Restricted Share Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares subject to award | shares | 122,545,665 | ||||||||
Exercised | 9,357 | $ 1,344 | |||||||
Granted | $ / shares | $ 0.60 | $ 1 | |||||||
Stock options, incremental cost as a result of modification | 7,393 | $ 1,062 | |||||||
2014 Restricted Share Plan | Restricted shares with an option feature | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation costs of share-based awards | ¥ 26,448 | 3,799 | |||||||
2014 Restricted Share Plan | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected period over which unamortized compensation costs is to be recognized | 1 year 4 months 27 days | 1 year 4 months 27 days | |||||||
Total fair value of vested shares | ¥ 5,354 | $ 769 | |||||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 19,653 | 2,823 | |||||||
2013 Incentive Scheme | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares subject to award | shares | 64,497,718 | ||||||||
Granted | $ / shares | $ 0 | ||||||||
Award scheme term | 10 years | ||||||||
2013 Incentive Scheme | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercised | ¥ 4,063 | $ 584 | |||||||
Granted | $ / shares | $ 1.03 | ||||||||
Expected period over which unamortized compensation costs is to be recognized | 1 year 7 months 17 days | 1 year 7 months 17 days | |||||||
Total fair value of vested shares | ¥ 2,569 | $ 369 | |||||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 15,615 | $ 2,243 | |||||||
2013 Incentive Scheme | Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options, incremental cost as a result of modification | 7,588 | 1,090 | |||||||
2013 Incentive Scheme | Vested Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options, incremental cost as a result of modification | 3,077 | 442 | |||||||
2013 Incentive Scheme | Non Vested Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options, incremental cost as a result of modification | ¥ 4,511 | $ 648 | |||||||
2011 Share Award Scheme | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award scheme term | 10 years | ||||||||
Shares available to be granted in the future | shares | 331,947 | 1,111,898 | 1,111,898 | 331,947 | |||||
2011 Share Award Scheme | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted | $ / shares | $ 0.37 | $ 0.96 | |||||||
Unrecognized compensation costs of share-based awards | ¥ 11,327 | $ 1,627 | |||||||
Expected period over which unamortized compensation costs is to be recognized | 2 years 3 days | 2 years 3 days | |||||||
Total fair value of vested shares | ¥ 9,357 | $ 1,344 | ¥ 15,152 | ¥ 21,149 | |||||
Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Maximum [Member] | 2014 Restricted Share Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | 1 year 8 months 1 day | 1 year 8 months 1 day | ||||||
Maximum [Member] | 2011 Share Award Scheme | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares subject to award | shares | 100,000,000 |
Share-Based Compensation - 2014
Share-Based Compensation - 2014 Restricted Shares plan (Detail) - 2014 Restricted Share Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | |
Number of shares | ||||||
Outstanding at the beginning of the year | 30,652,305 | |||||
Granted | 6,820,900 | |||||
Forfeited | (7,159,989) | |||||
Exercised | (4,950,498) | |||||
Outstanding Modified | (15,479,656) | (30,652,305) | (15,479,656) | (9,883,062) | (30,652,305) | |
Outstanding at the end of the year | 15,479,656 | 30,652,305 | ||||
Vested and expected to vest at end of year | 15,479,656 | |||||
Exercisable | 6,730,544 | |||||
Weighted Average Exercise Price | ||||||
Outstanding at the beginning of the year (in dollars per share) | $ 0.22 | |||||
Granted (in dollars per share) | 0.03 | |||||
Forfeited (in dollars per share) | 0.13 | |||||
Exercised (in dollars per share) | 0.10 | |||||
Outstanding at the end of the year Modified (in dollars per share) | 0.15 | $ 0.22 | $ 0.15 | $ 0.34 | $ 0.22 | |
Outstanding at the end of the year (in dollars per share) | 0.15 | 0.22 | ||||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of year (in dollars per share) | 1.15 | |||||
Granted (in dollars per share) | 0.60 | 1 | ||||
Forfeited (in dollars per share) | 0.81 | |||||
Exercised (in dollars per share) | 1.08 | |||||
Outstanding at end of year Modified (in dollars per share) | 1.15 | 1.15 | $ 1.15 | $ 1.05 | $ 1.15 | |
Outstanding at end of year (in dollars per share) | $ 1.15 | $ 1.15 | ||||
Weighted Average Remaining Contractual Term | ||||||
Outstanding | 4 years 3 months 21 days | 5 years 3 months 21 days | ||||
Aggregate Intrinsic Value | ||||||
Outstanding at the end of the year | $ 3,331 | $ 11,835 | ||||
Unvested at beginning of year | 0 | |||||
Number of ordinary shares, Vested | (2,164,799) | |||||
Number of ordinary shares, Forfeited | (221,450) | |||||
Unvested Modified | 0 | 0 | 7,496,813 | 9,883,062 | 0 | |
Unvested at end of year | 7,496,813 | 0 | ||||
Unvested at beginning of year (in dollars per share) | $ 0 | |||||
Vested (in dollars per share) | 1.31 | |||||
Forfeited (in dollars per share) | 1.36 | |||||
Unvested at end of year Modified (in dollars per share) | 0 | $ 0 | $ 1.06 | $ 1.12 | $ 0 | |
Unvested at end of year (in dollars per share) | $ 1.06 | $ 0 | ||||
Restricted shares with an option feature | ||||||
Aggregate Intrinsic Value | ||||||
Risk-free interest rates, minimum | 1.70% | 3.49% | 2.81% | |||
Risk-free interest rates, maximum | 3.25% | 3.59% | 2.99% | |||
Expected volatility range, minimum | 57.10% | 55.50% | 55.90% | |||
Expected volatility range, maximum | 62.90% | 57.00% | 58.00% | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||
Expected exercise multiple | 2.2 | 2.2 | 2.2 | |||
Restricted shares with an option feature | Minimum [Member] | ||||||
Aggregate Intrinsic Value | ||||||
Fair value of ordinary share (US$) | $ 0.84 | 0.36 | 0.85 | |||
Fair value per option granted (US$) | $ 0.36 | $ 0.66 | 0.55 | |||
Restricted shares with an option feature | Maximum [Member] | ||||||
Aggregate Intrinsic Value | ||||||
Fair value of ordinary share (US$) | 1.21 | $ 0.68 | $ 1.29 | |||
Fair value per option granted (US$) | $ 0.68 | $ 1.23 | $ 0.93 |
Share-Based Compensation - 2013
Share-Based Compensation - 2013 Incentive Scheme (Detail) - 2013 Incentive Scheme - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | |
Number of shares | ||||||
Outstanding at the beginning of the year | 44,791,941 | |||||
Granted | 0 | |||||
Forfeited | (3,417,123) | |||||
Exercised | (2,111,675) | |||||
Outstanding Modified | (33,251,025) | (44,791,941) | (33,251,025) | (6,012,118) | (44,791,941) | |
Outstanding at the end of the year | 33,251,025 | 44,791,941 | ||||
Vested and expected to vest at end of year | shares | 33,251,025 | |||||
Exercisable | shares | 33,251,025 | |||||
Weighted Average Exercise Price | ||||||
Outstanding at the beginning of the year (in dollars per share) | $ 0.33 | |||||
Granted (in dollars per share) | 0 | |||||
Forfeited (in dollars per share) | 0.34 | |||||
Exercised (in dollars per share) | 0.15 | |||||
Outstanding at the end of the year Modified (in dollars per share) | 0.34 | $ 0.33 | $ 0.34 | $ 0.34 | $ 0.33 | |
Outstanding at the end of the year (in dollars per share) | 0.34 | 0.33 | ||||
Weighted Average Grant Date Fair Value | ||||||
Outstanding at beginning of year (in dollars per share) | 1.13 | |||||
Granted (in dollars per share) | 0 | |||||
Forfeited (in dollars per share) | 1.02 | |||||
Exercised (in dollars per share) | 1.59 | |||||
Outstanding at end of year Modified (in dollars per share) | 1.13 | 1.13 | $ 1.13 | $ 1.10 | $ 1.13 | |
Outstanding at end of year (in dollars per share) | $ 1.13 | $ 1.13 | ||||
Weighted Average Remaining Contractual Term | ||||||
Outstanding | 4 years 3 days | 5 years 3 days | ||||
Aggregate Intrinsic Value | ||||||
Outstanding at the beginning of the year | $ 12,546 | |||||
Outstanding at the end of the year | $ 765 | $ 12,546 | ||||
Unvested at beginning of year | 0 | |||||
Number of ordinary shares, Vested | (1,052,546) | |||||
Number of ordinary shares, Forfeited | (28,515) | |||||
Unvested Modified | 0 | 0 | 4,931,057 | 6,012,118 | 0 | |
Unvested at end of year | 4,931,057 | 0 | ||||
Unvested at beginning of year (in dollars per share) | $ 0 | |||||
Vested (in dollars per share) | 1.02 | |||||
Forfeited (in dollars per share) | 1.33 | |||||
Unvested at end of year Modified (in dollars per share) | 0 | $ 0 | $ 1.17 | $ 1.14 | $ 0 | |
Unvested at end of year (in dollars per share) | $ 1.17 | $ 0 | ||||
Restricted shares with an option feature | ||||||
Aggregate Intrinsic Value | ||||||
Risk-free interest rates, minimum | 2.97% | 2.78% | ||||
Risk-free interest rates, maximum | 3.58% | 2.99% | ||||
Expected volatility range, minimum | 56.30% | 56.10% | ||||
Expected volatility range, maximum | 57.20% | 57.50% | ||||
Expected dividend yield | 0.00% | 0.00% | ||||
Expected exercise multiple | 2.2 | 2.2 | ||||
Restricted shares with an option feature | Minimum [Member] | ||||||
Aggregate Intrinsic Value | ||||||
Fair value of ordinary share (US$) | $ 0.84 | 1.06 | ||||
Fair value per option granted (US$) | $ 0.79 | 0.53 | ||||
Restricted shares with an option feature | Maximum [Member] | ||||||
Aggregate Intrinsic Value | ||||||
Fair value of ordinary share (US$) | 1.21 | $ 1.43 | ||||
Fair value per option granted (US$) | $ 1.15 | $ 0.88 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of assumptions used for grant date fair value under binomial tree option pricing model (Detail) - Equity Incentive Plans [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value of ordinary share (US$) | $ 0.41 | ||
Risk-free interest rates | 1.60% | ||
Risk-free interest rates, minimum | 2.57% | 1.75% | |
Risk-free interest rates, maximum | 3.73% | 3.10% | |
Expected volatility range | 43.40% | ||
Expected volatility range, minimum | 57.20% | 50.10% | |
Expected volatility range, maximum | 59.20% | 57.20% | |
Expected dividend yield | 0.00% | 0.00% | |
Fair value per option granted (US$) | $ 0.41 | ||
Maximum [Member] | |||
Fair value of ordinary share (US$) | $ 0.94 | $ 0.86 | |
Expected dividend yield | 8.72% | ||
Fair value per option granted (US$) | $ 0.22 | 0.86 | |
Minimum [Member] | |||
Fair value of ordinary share (US$) | $ 0.42 | 0.69 | |
Expected dividend yield | 8.61% | ||
Fair value per option granted (US$) | $ 0.27 | $ 0.14 |
Share-Based Compensation - 2011
Share-Based Compensation - 2011 Share Award Scheme (Detail) - Restricted Stock [Member] - 2011 Share Award Scheme - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested at beginning of year | 5,739,320 | |
Granted | 2,189,310 | |
Vested | (2,452,468) | |
Forfeited | (1,409,359) | |
Unvested at end of year | 4,066,803 | 5,739,320 |
Unvested at beginning of year (in dollars per share) | $ 1.06 | |
Granted (in dollars per share) | 0.37 | $ 0.96 |
Vested (in dollars per share) | 1.08 | |
Forfeited (in dollars per share) | 1.05 | |
Unvested at end of year (in dollars per share) | $ 0.69 | $ 1.06 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of share-based compensation expenses recognized (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | ¥ 48,672 | $ 6,991 | ¥ 12,005 | ¥ 10,721 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 31,907 | 4,583 | 8,803 | |
Selling and Marketing Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 1,479 | 212 | 95 | |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | ¥ 15,286 | $ 2,196 | ¥ 3,107 | ¥ 10,721 |
Share-Based Compensation - Expe
Share-Based Compensation - Expenses Recorded by Group (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | ¥ 127,440 | $ 18,306 | ¥ 85,118 | ¥ 73,316 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 524 | 75 | 206 | 762 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 59,771 | 8,586 | 14,224 | 20,691 |
Selling and Marketing Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | 3,818 | 548 | 8,967 | 39 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expenses | ¥ 63,327 | $ 9,097 | ¥ 61,721 | ¥ 51,824 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2014$ / sharesshares | |
Class of Stock [Line Items] | ||||||
Ordinary shares, shares authorized | 10,000,000,000 | |||||
Allocations to general reserve as a percentage of profit after tax | 10.00% | |||||
Threshold percentage of general reserve required to be maintained threshold percentage of general reserve required to be maintained | 50.00% | |||||
Appropriation to statutory common reserve | 10.00% | |||||
Threshold percentage of statutory common reserve required to be maintained | 50.00% | |||||
Net assets restricted to transfer | ¥ 1,406,789 | $ 202,703,000 | ||||
Other comprehensive income, tax expense or benefit | $ | $ 0 | $ 0 | $ 0 | |||
Common Class A [Member] | ||||||
Class of Stock [Line Items] | ||||||
Ordinary shares, shares authorized | 7,600,000,000 | 7,600,000,000 | 7,600,000,000 | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.000025 | $ 0.000025 | ||||
Ordinary shares, shares outstanding | 419,253,027 | 431,985,016 | 431,985,016 | |||
Common Class B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares transferred | 48,412,760 | |||||
Ordinary shares, shares authorized | 1,400,000,000 | 1,400,000,000 | 1,400,000,000 | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.000025 | $ 0.000025 | ||||
Ordinary shares, shares outstanding | 946,017,565 | 946,017,565 | 946,017,565 | |||
Reserved Shares | ||||||
Class of Stock [Line Items] | ||||||
Ordinary shares, shares authorized | 1,000,000,000 | |||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.000025 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Retained Earnings (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Class of Stock [Line Items] | |||
PRC statutory reserve funds | ¥ 45,806 | $ 6,580 | ¥ 38,349 |
Unreserved retained earnings | 1,899,132 | 272,793 | 2,667,621 |
Total retained earnings | ¥ 1,944,938 | $ 279,373 | ¥ 2,705,970 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (loss) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Class of Stock [Line Items] | ||||
Balance at the beginning of the period | ¥ 249,304 | ¥ 84,206 | ¥ 228,145 | |
Other comprehensive (loss) income before reclassification | 88,010 | 179,244 | (148,737) | |
Other comprehensive income (loss) attribute to noncontrolling interests | 459 | (14,146) | 4,798 | |
Balance at the end of the period | 337,773 | $ 48,518 | 249,304 | 84,206 |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Class of Stock [Line Items] | ||||
Balance at the beginning of the period | 253,054 | 84,222 | 227,728 | |
Other comprehensive (loss) income before reclassification | 77,097 | 182,978 | (148,304) | |
Other comprehensive income (loss) attribute to noncontrolling interests | 459 | (14,146) | 4,798 | |
Balance at the end of the period | 330,610 | 47,489 | 253,054 | 84,222 |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Class of Stock [Line Items] | ||||
Balance at the beginning of the period | (3,750) | (16) | 417 | |
Other comprehensive (loss) income before reclassification | 10,913 | (3,734) | (433) | |
Balance at the end of the period | ¥ 7,163 | $ 1,029 | ¥ (3,750) | ¥ (16) |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2017CNY (¥) | Apr. 30, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Noncontrolling Interest [Line Items] | ||||||
Preferred stock, accretion | ¥ 31,662 | $ 4,548 | ¥ 38,601 | ¥ 13,451 | ||
Live me [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Annual compound interest rate of Live.me | 6.00% | |||||
Share Subscription and Purchase Agreement (SPA) [Member] | Live me [Member] | Investors [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Proceeds from issuance of preferred shares | ¥ 329,710 | ¥ 306,085 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Noncontrolling Interest [Line Items] | ||||
Beginning balance | ¥ 687,847 | ¥ 649,246 | ||
Accretion | 31,662 | $ 4,548 | 38,601 | ¥ 13,451 |
Deconsolidation of Live.me (Note 3) | (719,509) | |||
Ending balance | ¥ 687,847 | ¥ 649,246 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / shares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | |||||
Net income (loss) attributable to Cheetah Mobile Inc. | ¥ (313,977) | $ (45,101) | ¥ 1,166,909 | ¥ 1,348,194 | |
Accretion of redeemable noncontrolling interests | ¥ | (37,714) | (13,451) | |||
Dilution effect arising from share-based awards issued by subsidiaries | ¥ | (14) | ||||
Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries | ¥ | ¥ 1,129,181 | ¥ 1,334,743 | |||
Denominator: | |||||
Weighted average number of ordinary shares outstanding | 1,369,041,418 | 1,369,041,418 | 1,403,089,609 | 1,394,303,326 | |
Earnings (loss) per share—basic | (per share) | $ 0.8048 | ¥ 0.9573 | |||
Weighted average ordinary shares outstanding | 1,369,041,418 | 1,369,041,418 | 1,403,089,609 | 1,394,303,326 | |
Dilutive effect of Share-based awards | 37,325,240 | 30,851,512 | |||
Denominator used for earnings (loss) per share | 1,369,041,418 | 1,369,041,418 | 1,440,414,849 | 1,425,154,838 | |
Earnings (loss) per share—diluted | (per share) | 0.7839 | ¥ 0.9366 | |||
Numerator: | |||||
Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries | ¥ | ¥ 1,129,181 | ¥ 1,334,743 | |||
Net income (loss) attributable to ordinary shareholders | ¥ | ¥ 1,129,181 | ¥ 1,334,743 | |||
ADS | |||||
Denominator: | |||||
Weighted average number of ordinary shares outstanding | 140,308,961 | 139,430,333 | |||
Earnings (loss) per share—basic | (per share) | 8.0478 | ¥ 9.5728 | |||
Weighted average ordinary shares outstanding | 140,308,961 | 139,430,333 | |||
Denominator used for earnings (loss) per share | 144,041,485 | 142,515,484 | |||
Earnings (loss) per share—diluted | (per share) | $ 7.8393 | ¥ 9.3656 | |||
Common Class A [Member] | |||||
Numerator: | |||||
Net income (loss) attributable to Cheetah Mobile Inc. | ¥ (97,017) | $ (13,937) | |||
Accretion of redeemable noncontrolling interests | (9,228) | (1,326) | |||
Dilution effect arising from share-based awards issued by subsidiaries | (101) | (15) | |||
Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries | ¥ (106,346) | $ (15,278) | |||
Denominator: | |||||
Weighted average number of ordinary shares outstanding | 423,023,853 | 423,023,853 | |||
Earnings (loss) per share—basic | (per share) | ¥ (0.2514) | $ (0.0361) | |||
Weighted average ordinary shares outstanding | 423,023,853 | 423,023,853 | |||
Conversion of Class B into Class A ordinary shares | 946,017,565 | 946,017,565 | |||
Denominator used for earnings (loss) per share | 1,369,041,418 | 1,369,041,418 | |||
Earnings (loss) per share—diluted | (per share) | ¥ (0.2514) | $ (0.0361) | |||
Numerator: | |||||
Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries | ¥ (106,346) | $ (15,278) | |||
Reallocation of net income as a result of conversion of Class B into Class A ordinary shares | (237,822) | (34,160) | |||
Net income (loss) attributable to ordinary shareholders | ¥ (344,168) | $ (49,438) | |||
Common Class A [Member] | ADS | |||||
Denominator: | |||||
Weighted average number of ordinary shares outstanding | 42,302,385 | 42,302,385 | |||
Earnings (loss) per share—basic | (per share) | ¥ (2.5140) | $ (0.3611) | |||
Weighted average ordinary shares outstanding | 42,302,385 | 42,302,385 | |||
Denominator used for earnings (loss) per share | 136,904,142 | 136,904,142 | |||
Earnings (loss) per share—diluted | (per share) | ¥ (2.5140) | $ (0.3611) | |||
Common Class B [Member] | |||||
Numerator: | |||||
Net income (loss) attributable to Cheetah Mobile Inc. | ¥ (216,960) | $ (31,164) | |||
Accretion of redeemable noncontrolling interests | (20,637) | (2,964) | |||
Dilution effect arising from share-based awards issued by subsidiaries | (225) | (32) | |||
Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries | ¥ (237,822) | $ (34,160) | |||
Denominator: | |||||
Weighted average number of ordinary shares outstanding | 946,017,565 | 946,017,565 | |||
Earnings (loss) per share—basic | (per share) | ¥ (0.2514) | $ (0.0361) | |||
Weighted average ordinary shares outstanding | 946,017,565 | 946,017,565 | |||
Denominator used for earnings (loss) per share | 946,017,565 | 946,017,565 | |||
Earnings (loss) per share—diluted | (per share) | ¥ (0.2514) | $ (0.0361) | |||
Numerator: | |||||
Net income (loss) attributable to Cheetah Mobile Inc. after accretion of redeemable noncontrolling interests and dilution effect arising from share-based awards issued by subsidiaries | ¥ (237,822) | $ (34,160) | |||
Net income (loss) attributable to ordinary shareholders | ¥ (237,822) | $ (34,160) |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥)shares | |
Equity, Class of Treasury Stock [Line Items] | ||||
Payments for Repurchase of Common Stock | ¥ 175 | $ 25,000 | ¥ 221,749 | |
2018 Share Repurchase Plan | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ | $ 100,000,000 | |||
Payments for Repurchase of Common Stock | ¥ | ¥ 221,932 | |||
Stock Repurchase Program, Period in Force | 1 year | |||
2018 Share Repurchase Plan | ADS | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock | 4,527,304 | |||
2018 Share Repurchase Plan | Common Class A [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock | 45,273,040 |
Employee Benefit - Additional I
Employee Benefit - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Contributions for employee benefits | ¥ 193,990 | $ 27,865 | ¥ 177,086 | ¥ 175,508 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) | Dec. 31, 2019 |
Sales Growth Rate [Member] | |
Sensitivity analysis of the investment in equity investment increase in sales growth rate | 0.50% |
Percent of increase in fair value investment | 8.00% |
Sensitivity analysis of the investment in equity investment decrease in sales growth rate | 0.50% |
Percent of decrease in fair value investment | 7.00% |
Weighted average cost of capital [member] | |
Percent of increase in fair value investment | 7.00% |
Percent of decrease in fair value investment | 5.00% |
Sensitivity analysis of the investment in equity investment increase in weighted average cost of capital | 0.50% |
Sensitivity analysis of the investment in equity investment decrease in weighted average cost of capital | 0.50% |
Fair Value Measurement- Assets
Fair Value Measurement- Assets and Liabilities Measured or Disclosed at Fair Value (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total (losses) gains, Available-for-sale debt security | ¥ (4,864) | $ (699) | ¥ 3,732 | ¥ 0 | ||
Total (losses) gains, Intangible assets, net | (545,665) | $ (78,380) | ||||
Total (losses) gains, Equity investments accounted for at fair value using the alternative measurement | (1,895,951) | (1,564,062) | $ (272,336) | |||
Total (losses) gains, total assets | (745,846) | 265,478 | ||||
Goodwill | (545,665) | |||||
Total assets measured at fair value | 1,492,992 | 693,874 | 214,455 | $ 100,920 | ||
Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total (losses) gains, Available-for-sale debt security | 10,913 | (3,732) | ||||
Total (losses) gains, Equity investments with readily determinable fair value | 2,853 | |||||
Total (losses) gains, Equity investments accounted for using fair value option | (102,555) | |||||
Equity investments with readily determinable fair value | 30,743 | 4,416 | ||||
Equity investments accounted for using fair value option | 388,581 | 55,816 | ||||
Available-for-sale debt security | 146,723 | 133,448 | 21,075 | 19,409 | ||
Fair Value, Measurements, Nonrecurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total (losses) gains, Intangible assets, net | (8,800) | (12,767) | ||||
Total (losses) gains, Equity investments accounted for at fair value using the alternative measurement | (102,592) | 281,977 | ||||
Intangible assets, net | 19 | 465 | 3 | 68 | ||
Equity investments accounted for at fair value using measurement alternative | 926,926 | 559,961 | $ 133,145 | $ 81,443 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total assets measured at fair value | 30,743 | |||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity investments with readily determinable fair value | 30,743 | |||||
Significant Other Observable Inputs (Level 2) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total assets measured at fair value | 146,723 | 133,448 | ||||
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Available-for-sale debt security | 146,723 | 133,448 | ||||
Significant Unobservable Inputs (Level 3) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total assets measured at fair value | 1,315,526 | 560,426 | ||||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity investments accounted for using fair value option | 388,581 | |||||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Intangible assets, net | 19 | 465 | ||||
Equity investments accounted for at fair value using measurement alternative | ¥ 926,926 | ¥ 559,961 |
Fair Value Measurement - Reconc
Fair Value Measurement - Reconciliation of the Assets and Liabilities (Detail) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Fair Value Inputs Quantitative Information [Line Items] | ||
Addition | ¥ 497,796 | |
Fair value change | (102,555) | |
Foreign exchange translation adjustments | (6,660) | |
Balance | ¥ 388,581 | $ 55,816 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of significant unobservable inputs used in the fair value measurement (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Equity Securities, FV-NI, Gain (Loss) | ¥ (102,592) | $ (14,737) | ¥ 582,188 |
Valuation Technique, Discounted Cash Flow [Member] | Discount Rate [Member] | |||
Equity Securities, FV-NI, Gain (Loss) | ¥ 388,581 | ||
Valuation Technique, Discounted Cash Flow [Member] | Sales Growth Rate [Member] | Maximum [Member] | |||
Equity Securities, FV-NI, Measurement Input | 0.215 | 0.215 | |
Valuation Technique, Discounted Cash Flow [Member] | Sales Growth Rate [Member] | Minimum [Member] | |||
Equity Securities, FV-NI, Measurement Input | (0.162) | (0.162) | |
Valuation Technique, Discounted Cash Flow [Member] | Weighted average cost of capital [member] | |||
Equity Securities, FV-NI, Measurement Input | 0.18 | 0.18 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Apr. 01, 2020 |
Subsequent Event [Member] | Voting proxy agreement [member] | Yuki Yandan He [member] | |
Subsequent Event [Line Items] | |
Percentage of voting power delegated | 31.26% |
Condensed Financial Informati_3
Condensed Financial Information of the Company - Condensed Balance Sheets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Current assets | |||||
Cash and cash equivalents | ¥ 983,004 | $ 141,200 | ¥ 2,783,843 | ||
Short-term investments | 1,369,118 | 196,661 | 930,610 | ||
Prepayments and other current assets | 936,109 | 134,464 | 1,064,714 | ||
Due from related parties | 233,255 | 33,505 | 126,990 | ||
Total current assets | 3,993,400 | 573,616 | 5,567,551 | ||
Non-current assets | |||||
Intangible assets, net | 44,476 | 6,389 | 48,421 | ||
Goodwill | 617,837 | ¥ 634,157 | |||
Long-term investments | 2,516,724 | 361,504 | 1,849,043 | ||
Total non-current assets | 3,018,344 | 433,557 | 2,725,085 | ||
Total assets | 7,011,744 | 1,007,173 | 8,292,636 | ||
Current liabilities | |||||
Accrued expenses and other current liabilities | 1,504,728 | 216,141 | 1,514,642 | ||
Due to related parties | 92,210 | 13,245 | 37,298 | ||
Income tax payable | 60,657 | 8,713 | 112,770 | ||
Total current liabilities | 1,745,119 | 250,670 | 1,835,765 | ||
Deferred tax liabilities | 82,847 | 11,900 | 110,291 | ||
Other non-current liabilities | 189,231 | 27,182 | 64,185 | ||
Total non-current liabilities | 272,078 | 39,082 | 174,476 | ||
Total liabilities | 2,017,197 | 289,752 | 2,010,241 | ||
Shareholders' equity | |||||
Treasury stock (45,273,040 and nil shares as of December 31, 2018 and 2019, respectively) | (221,932) | ||||
Additional paid-in capital | 2,649,342 | 380,554 | 2,742,893 | ||
Retained earnings | 1,944,938 | 279,373 | 2,705,970 | ||
Accumulated other comprehensive income | 337,773 | 48,518 | 249,304 | ¥ 84,206 | ¥ 228,145 |
Total shareholders' equity | 4,932,278 | 708,477 | 5,476,465 | ||
Total liabilities, mezzanine equity and equity. | 7,011,744 | 1,007,173 | 8,292,636 | ||
Common Class A [Member] | |||||
Shareholders' equity | |||||
Ordinary shares | 69 | 11 | 74 | ||
Common Class B [Member] | |||||
Shareholders' equity | |||||
Ordinary shares | 156 | 21 | 156 | ||
Parent Company [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 249,586 | 35,851 | 318,546 | ||
Short-term investments | 795,510 | 114,268 | |||
Prepayments and other current assets | 141,230 | 20,286 | 16,838 | ||
Due from related parties | 965,477 | 138,682 | 2,312,111 | ||
Total current assets | 2,151,803 | 309,087 | 2,647,495 | ||
Non-current assets | |||||
Intangible assets, net | 5 | ||||
Goodwill | 62,785 | ||||
Long-term investments | 1,007,897 | 144,776 | 628,888 | ||
Investment in subsidiaries | 2,836,345 | 407,415 | 3,064,747 | ||
Total non-current assets | 3,844,242 | 552,191 | 3,756,425 | ||
Total assets | 5,996,045 | 861,278 | 6,403,920 | ||
Current liabilities | |||||
Accrued expenses and other current liabilities | 26,583 | 3,819 | 27,128 | ||
Due to related parties | 933,466 | 134,084 | 836,642 | ||
Income tax payable | 34,051 | 4,891 | 33,499 | ||
Total current liabilities | 994,100 | 142,794 | 897,269 | ||
Deferred tax liabilities | 69,401 | 9,969 | 29,925 | ||
Other non-current liabilities | 266 | 38 | 261 | ||
Total non-current liabilities | 69,667 | 10,007 | 30,186 | ||
Total liabilities | 1,063,767 | 152,801 | 927,455 | ||
Shareholders' equity | |||||
Treasury stock (45,273,040 and nil shares as of December 31, 2018 and 2019, respectively) | (221,932) | ||||
Additional paid-in capital | 2,649,342 | 380,554 | 2,742,893 | ||
Retained earnings | 1,944,938 | 279,373 | 2,705,970 | ||
Accumulated other comprehensive income | 337,773 | 48,518 | 249,304 | ||
Total shareholders' equity | 4,932,278 | 708,477 | 5,476,465 | ||
Total liabilities, mezzanine equity and equity. | 5,996,045 | 861,278 | 6,403,920 | ||
Parent Company [Member] | Common Class A [Member] | |||||
Shareholders' equity | |||||
Ordinary shares | 69 | 11 | 74 | ||
Parent Company [Member] | Common Class B [Member] | |||||
Shareholders' equity | |||||
Ordinary shares | ¥ 156 | $ 21 | ¥ 156 |
Condensed Financial Informati_4
Condensed Financial Information of the Company - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2014 |
Ordinary shares, shares authorized | 10,000,000,000 | ||
Treasury stock, shares | 45,273,040 | ||
Common Class A [Member] | |||
Ordinary shares, par value | $ 0.000025 | $ 0.000025 | |
Ordinary shares, shares authorized | 7,600,000,000 | 7,600,000,000 | |
Ordinary shares, shares issued | 435,084,177 | 475,357,217 | |
Ordinary shares, shares outstanding | 431,985,016 | 419,253,027 | |
Common Class B [Member] | |||
Ordinary shares, par value | $ 0.000025 | $ 0.000025 | |
Ordinary shares, shares authorized | 1,400,000,000 | 1,400,000,000 | |
Ordinary shares, shares issued | 957,985,982 | 957,985,982 | |
Ordinary shares, shares outstanding | 946,017,565 | 946,017,565 | |
Parent Company [Member] | |||
Treasury stock, shares | 0 | 45,273,040 | |
Parent Company [Member] | Common Class A [Member] | |||
Ordinary shares, par value | $ 0.000025 | $ 0.000025 | |
Ordinary shares, shares authorized | 7,600,000,000 | 7,600,000,000 | |
Ordinary shares, shares issued | 435,084,177 | 475,357,217 | |
Ordinary shares, shares outstanding | 431,985,016 | 419,253,027 | |
Parent Company [Member] | Common Class B [Member] | |||
Ordinary shares, par value | $ 0.000025 | $ 0.000025 | |
Ordinary shares, shares authorized | 1,400,000,000 | 1,400,000,000 | |
Ordinary shares, shares issued | 957,985,982 | 957,985,982 | |
Ordinary shares, shares outstanding | 946,017,565 |
Condensed Financial Informati_5
Condensed Financial Information of the Company - Consolidated Statement of Comprehensive income (loss) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenues | ¥ 4,981,705 | ¥ 4,974,757 | ||
Cost of revenues | ¥ (1,241,932) | $ (178,392) | (1,540,633) | (1,780,089) |
Gross profit | 2,345,763 | 336,948 | 3,441,072 | 3,194,668 |
Operating expenses | ||||
Research and development | (787,329) | (113,093) | (668,918) | (684,863) |
Selling and marketing | (1,558,315) | (223,838) | (1,910,044) | (1,656,505) |
General and administrative | (587,457) | (84,383) | (430,826) | (407,410) |
Impairment of goodwill | (545,665) | (78,380) | ||
Interest (expense) income, net | 110,010 | 15,802 | 87,716 | 22,603 |
Foreign exchange (loss) gains, net | 49 | 7 | 13,821 | (15,224) |
Other (loss) income, net | 635,166 | 91,235 | 700,964 | 979,006 |
Income (Loss) before income taxes | (365,687) | (52,529) | 1,269,723 | 1,433,265 |
Income tax expenses | (7,904) | (1,135) | (117,000) | (57,602) |
Net income (loss) | (313,977) | (45,101) | 1,166,909 | 1,348,194 |
Other comprehensive (loss) income, net of tax of nil | ||||
Unrealized (losses) gains on available-for-sale securities, net | 10,913 | 1,568 | (3,734) | (433) |
Foreign currency translation adjustments | 77,097 | 11,074 | 182,978 | (148,304) |
Total comprehensive income (loss) | (225,508) | (32,393) | 1,332,007 | 1,204,255 |
Parent Company [Member] | ||||
Revenues | 14,525 | 52,053 | ||
Cost of revenues | (5) | (1) | (2,509) | (6,919) |
Gross profit | (5) | (1) | 12,016 | 45,134 |
Operating expenses | ||||
Research and development | (858) | (123) | 545 | (11,370) |
Selling and marketing | (84) | |||
General and administrative | (41,872) | (6,015) | (28,158) | (18,931) |
Impairment of goodwill | (64,154) | (9,215) | ||
Total operating expenses | (106,884) | (15,353) | (27,613) | (30,385) |
Equity in profit (loss) of subsidiaries | (495,735) | (71,208) | 632,055 | 1,346,556 |
Interest (expense) income, net | 21,677 | 3,114 | 3,248 | (6,525) |
Foreign exchange (loss) gains, net | 152 | 22 | 3,551 | (3,877) |
Other (loss) income, net | 306,006 | 43,955 | 604,346 | (159) |
Income (Loss) before income taxes | (274,789) | (39,471) | 1,227,603 | 1,350,744 |
Income tax expenses | (39,188) | (5,630) | (60,694) | (2,550) |
Net income (loss) | (313,977) | (45,101) | 1,166,909 | 1,348,194 |
Other comprehensive (loss) income, net of tax of nil | ||||
Unrealized (losses) gains on available-for-sale securities, net | 10,913 | 1,568 | (3,716) | (433) |
Foreign currency translation adjustments | 77,556 | 11,140 | 168,814 | (143,506) |
Other comprehensive (loss) income | 88,469 | 12,708 | 165,098 | (143,939) |
Total comprehensive income (loss) | ¥ (225,508) | $ (32,393) | ¥ 1,332,007 | ¥ 1,204,255 |
Condensed Financial Informati_6
Condensed Financial Information of the Company - Consolidated Statement of Cash Flows (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Net cash provided by (used in) operating activities | ¥ (239,544) | $ (34,408) | ¥ 345,590 | ¥ 625,588 |
Net cash provided by investing activities | (1,085,226) | (155,883) | 538,636 | (231,493) |
Net cash provided by (used in) financing activities | (485,070) | (69,675) | (546,511) | 508,066 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 5,506 | 792 | 44,624 | (73,275) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,804,334) | (259,174) | 382,339 | 828,886 |
Cash, cash equivalents and restricted cash at beginning of year | 2,789,976 | 400,753 | 2,407,637 | 1,578,751 |
Cash, cash equivalents and restricted cash at end of year | 985,642 | 141,579 | 2,789,976 | 2,407,637 |
Parent Company [Member] | ||||
Net cash provided by (used in) operating activities | (15,258) | (2,192) | 243 | 40,685 |
Net cash provided by investing activities | 375,584 | 53,950 | 339,955 | 265,767 |
Net cash provided by (used in) financing activities | (494,055) | (70,967) | (526,532) | 23,929 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 64,769 | $ 9,304 | 66,054 | (35,413) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (120,280) | 294,968 | ||
Cash, cash equivalents and restricted cash at beginning of year | ¥ 318,546 | 438,826 | 143,858 | |
Cash, cash equivalents and restricted cash at end of year | ¥ 318,546 | ¥ 438,826 |