Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Entity Registrant Name | Bilibili Inc. |
Entity Central Index Key | 0001723690 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2021 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Document Transition Report | false |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Document Shell Company Report | false |
Entity File Number | 001-38429 |
Entity Incorporation, State or Country Code | E9 |
Document Registration Statement | false |
Entity Address, Address Line One | Building 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200433 |
Entity Address, Country | CN |
ICFR Auditor Attestation Flag | true |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing, the People’s Republic of China |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Xin Fan |
Entity Address, Address Line One | Building 3, Guozheng Center, No. 485 Zhengli Road, Yangpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200433 |
Entity Address, Country | CN |
Country Region | 86 |
City Area Code | 21 |
Local Phone Number | 25099255 |
Contact Personnel Email Address | sam@bilibili.com |
Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 390,604,587 |
Class Z Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 306,889,473 |
Common Stock, Capital Shares Reserved for Future Issuance | 2,767,265 |
Title of 12(b) Security | Class Z ordinary shares, par value US$0.0001 per share |
No Trading Symbol Flag | true |
Class Y Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 83,715,114 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing one Class Z ordinary share |
Security Exchange Name | NASDAQ |
Trading Symbol | BILI |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Current assets: | ||||
Cash and cash equivalents | ¥ 7,523,108 | $ 1,180,540 | ¥ 4,678,109 | |
Time deposits | 7,632,334 | 1,197,680 | 4,720,089 | |
Accounts receivable, net | 1,382,328 | 216,917 | 1,053,641 | |
Amount due from related parties | 2,041,316 | 320,327 | 164,732 | |
Prepayments and other current assets | 2,807,048 | 440,487 | 1,765,787 | |
Short-term investments | 15,060,722 | 2,363,356 | 3,357,189 | |
Total current assets | 36,446,856 | 5,719,307 | 15,739,547 | |
Non-current assets: | ||||
Property and equipment, net | 1,350,256 | 211,885 | 761,941 | |
Production cost, net | 1,083,772 | 170,067 | 667,876 | |
Intangible assets, net | 3,835,600 | 601,889 | 2,356,959 | |
Deferred tax assets | 36,355 | 5,705 | 20,918 | |
Goodwill | 2,338,303 | 366,931 | 1,295,786 | |
Long-term investments, net | 5,502,524 | 863,466 | 2,232,938 | |
Other long-term assets | 1,459,485 | 229,025 | 789,643 | |
Total non-current assets | 15,606,295 | 2,448,968 | 8,126,061 | |
Total assets | 52,053,151 | 8,168,275 | 23,865,608 | |
Current liabilities: | ||||
Accounts payable | 4,360,906 | 684,321 | 3,074,298 | |
Salary and welfare payable | 995,451 | 156,208 | 734,376 | |
Taxes payable | 203,770 | 31,976 | 127,192 | |
Short-term loans | 1,232,106 | 193,344 | 100,000 | |
Deferred revenue | 2,645,389 | 415,119 | 2,118,006 | |
Accrued liabilities and other payables | 2,416,955 | 379,273 | 1,237,676 | |
Amount due to related parties | 216,434 | [1] | 33,963 | |
Total current liabilities | 12,071,011 | 1,894,204 | 7,391,548 | |
Non-current liabilities: | ||||
Long-term debt | 17,784,092 | 2,790,712 | 8,340,922 | |
Other long-term liabilities | 481,982 | 75,634 | 350,934 | |
Total non-current liabilities | 18,266,074 | 2,866,346 | 8,691,856 | |
Total liabilities | 30,337,085 | 4,760,550 | 16,083,404 | |
Commitments and contingencies (Note 19) | ||||
Shareholders' equity | ||||
Additional paid-in capital | 35,929,961 | 5,638,195 | 14,616,302 | |
Statutory reserves | 24,621 | 3,864 | 17,884 | |
Accumulated other comprehensive income/(loss) | (279,862) | (43,916) | 141,129 | |
Accumulated deficit | (13,971,300) | (2,192,403) | (7,175,339) | |
Total Bilibili Inc.'s shareholders' equity | 21,703,667 | 3,405,779 | 7,600,200 | |
Noncontrolling interests | 12,399 | 1,946 | 182,004 | |
Total shareholders' equity | 21,716,066 | 3,407,725 | 7,782,204 | |
Total liabilities and shareholders' equity | 52,053,151 | 8,168,275 | 23,865,608 | |
Class Y Ordinary Shares | ||||
Shareholders' equity | ||||
Ordinary shares | 52 | 8 | 52 | |
Class Z Ordinary Shares | ||||
Shareholders' equity | ||||
Ordinary shares | ¥ 199 | $ 31 | ¥ 172 | |
[1] | Amount due to related parties as of December 31, 2021 are primarily considerations related to long-term investments, which are non-trade in nature. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares |
Liabilities | ¥ 30,337,085 | $ 4,760,550 | ¥ 16,083,404 | |
Class Y Ordinary Shares | ||||
Ordinary shares | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Ordinary shares, issued | 83,715,114 | 83,715,114 | 83,715,114 | |
Ordinary shares, outstanding | 83,715,114 | 83,715,114 | 83,715,114 | |
Class Z Ordinary Shares | ||||
Ordinary shares | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Ordinary shares, authorized | 9,800,000,000 | 9,800,000,000 | 9,800,000,000 | |
Ordinary shares, issued | 309,656,738 | 309,656,738 | 271,507,165 | |
Ordinary shares, outstanding | 306,889,473 | 306,889,473 | 268,204,838 | |
Consolidated VIEs without recourse to the primary beneficiary | ||||
Liabilities | ¥ | ¥ 14,967,875 | ¥ 8,819,525 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues | ¥ 19,383,684 | $ 3,041,722 | ¥ 11,998,976 | ¥ 6,777,922 |
Cost of revenues | (15,340,537) | (2,407,265) | (9,158,800) | (5,587,673) |
Gross profit | 4,043,147 | 634,457 | 2,840,176 | 1,190,249 |
Operating expenses: | ||||
Sales and marketing expenses | (5,794,853) | (909,339) | (3,492,091) | (1,198,516) |
General and administrative expenses | (1,837,506) | (288,345) | (976,082) | (592,497) |
Research and development expenses | (2,839,862) | (445,636) | (1,512,966) | (894,411) |
Total operating expenses | (10,472,221) | (1,643,320) | (5,981,139) | (2,685,424) |
Loss from operations | (6,429,074) | (1,008,863) | (3,140,963) | (1,495,175) |
Other income/(expense): | ||||
Investment income/(loss), net (including impairments) | (194,183) | (30,472) | 28,203 | 96,610 |
Interest income | 70,367 | 11,042 | 83,301 | 162,782 |
Interest expense | (155,467) | (24,396) | (108,547) | (46,543) |
Exchange (losses)/gains | (15,504) | (2,433) | 41,717 | (11,789) |
Others, net | 10,411 | 1,634 | 95,641 | 26,412 |
Total other income/(expense), net | (284,376) | (44,625) | 140,315 | 227,472 |
Loss before tax | (6,713,450) | (1,053,488) | (3,000,648) | (1,267,703) |
Income tax | (95,289) | (14,953) | (53,369) | (35,867) |
Net loss | (6,808,739) | (1,068,441) | (3,054,017) | (1,303,570) |
Accretion to redeemable noncontrolling interests | ¥ | (4,292) | |||
Net loss attributable to noncontrolling interests | 19,511 | 3,062 | 46,605 | 14,597 |
Net loss attributable to the Bilibili Inc.'s shareholders | (6,789,228) | (1,065,379) | (3,011,704) | (1,288,973) |
Net loss | (6,808,739) | (1,068,441) | (3,054,017) | (1,303,570) |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | (420,991) | (66,063) | (325,100) | 140,152 |
Total other comprehensive income/(loss) | (420,991) | (66,063) | (325,100) | 140,152 |
Total comprehensive loss | (7,229,730) | (1,134,504) | (3,379,117) | (1,163,418) |
Accretion to redeemable noncontrolling interests | ¥ | (4,292) | |||
Net loss attributable to noncontrolling interests | 19,511 | 3,062 | 46,605 | 14,597 |
Comprehensive loss attributable to the Bilibili Inc.'s shareholders | ¥ (7,210,219) | $ (1,131,442) | ¥ (3,336,804) | ¥ (1,148,821) |
Net loss per share/ADS, basic | (per share) | ¥ (17.87) | $ (2.80) | ¥ (8.71) | ¥ (3.99) |
Net loss per share/ADS, diluted | (per share) | ¥ (17.87) | $ (2.80) | ¥ (8.71) | ¥ (3.99) |
Cost of revenues | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 76,232 | $ 11,962 | ¥ 37,087 | ¥ 23,281 |
Sales and marketing expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 53,452 | 8,388 | 40,808 | 14,269 |
General and administrative expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 553,526 | 86,860 | 181,753 | 68,497 |
Research and development expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 316,607 | $ 49,683 | ¥ 126,250 | ¥ 66,503 |
ADSs | ||||
Other comprehensive income/(loss): | ||||
Net loss per share/ADS, basic | (per share) | ¥ (17.87) | $ (2.80) | ¥ (8.71) | ¥ (3.99) |
Net loss per share/ADS, diluted | (per share) | ¥ (17.87) | $ (2.80) | ¥ (8.71) | ¥ (3.99) |
Weighted average number of ordinary shares/ADSs, basic | shares | 379,898,121 | 379,898,121 | 345,816,023 | 323,161,680 |
Weighted average number of ordinary shares/ADSs, diluted | shares | 379,898,121 | 379,898,121 | 345,816,023 | 323,161,680 |
Ordinary shares | ||||
Other comprehensive income/(loss): | ||||
Weighted average number of ordinary shares/ADSs, basic | shares | 379,898,121 | 379,898,121 | 345,816,023 | 323,161,680 |
Weighted average number of ordinary shares/ADSs, diluted | shares | 379,898,121 | 379,898,121 | 345,816,023 | 323,161,680 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Secondary Public Offering OR HK IPOCNY (¥) | Ordinary sharesClass Y Ordinary SharesCNY (¥)shares | Ordinary sharesClass Z Ordinary SharesCNY (¥)shares | Ordinary sharesClass Z Ordinary SharesSecondary Public Offering OR HK IPOCNY (¥)shares | Additional paid-in capitalCNY (¥) | Additional paid-in capitalSecondary Public Offering OR HK IPOCNY (¥) | Statutory reservesCNY (¥) | Accumulated other comprehensive income/(loss)CNY (¥) | Accumulated deficitCNY (¥) | Noncontrolling interestsCNY (¥) |
Balance at the beginning of the year (Shares) at Dec. 31, 2018 | shares | 85,364,814 | 226,323,075 | ||||||||||
Balance at the beginning of the year at Dec. 31, 2018 | ¥ 7,191,202 | ¥ 53 | ¥ 144 | ¥ 9,459,546 | ¥ 7,666 | ¥ 326,077 | ¥ (2,842,690) | ¥ 240,406 | ||||
Net loss | (1,303,570) | (1,288,973) | (14,597) | |||||||||
Share-based compensation | 172,550 | 172,550 | ||||||||||
Issuance of ordinary shares, net of issuance costs | 1,647,711 | ¥ 10 | 1,647,701 | |||||||||
Issuance of ordinary shares, net of issuance costs (in shares) | shares | 14,173,813 | |||||||||||
Acquisition of a subsidiary | 30,000 | 30,000 | ||||||||||
Consolidation of an entity under common control | (70,161) | (488,463) | (8,146) | 426,448 | ||||||||
Purchase of noncontrolling interests | (175,624) | (73,144) | (102,480) | |||||||||
Share issuance from exercise of share options | ¥ 1 | ¥ 1 | ||||||||||
Share issuance from exercise of share options (in shares) | shares | 2,255,000 | 2,255,000 | 2,254,453 | |||||||||
Deconsolidation of a subsidiary | ¥ 4,199 | 4,199 | ||||||||||
Appropriation to statutory reserves | 5,797 | (5,797) | ||||||||||
Foreign currency translation adjustments | 140,152 | 140,152 | ||||||||||
Balance at the end of the year at Dec. 31, 2019 | 7,636,460 | ¥ 53 | ¥ 155 | 10,718,190 | 13,463 | 466,229 | (4,145,606) | 583,976 | ||||
Balance at the end of the year (Shares) at Dec. 31, 2019 | shares | 85,364,814 | 242,751,341 | ||||||||||
Net loss | (3,054,017) | (3,007,412) | (46,605) | |||||||||
Impact of adoption of credit loss guidance | (17,900) | (17,900) | ||||||||||
Share-based compensation | 385,898 | 385,898 | ||||||||||
Issuance ordinary shares related to long-term investments | 277,467 | 277,467 | ||||||||||
Issuance of ordinary shares, net of issuance costs | 2,817,458 | ¥ 12 | 2,817,446 | |||||||||
Issuance of ordinary shares, net of issuance costs (in shares) | shares | 17,310,696 | |||||||||||
Shares redesignation | ¥ (1) | ¥ 1 | ||||||||||
Shares redesignation (in shares) | shares | (1,649,700) | 1,649,700 | ||||||||||
Accretion to redeemable noncontrolling interests | (5,964) | (4,292) | (1,672) | |||||||||
Capital injection in subsidiaries by noncontrolling interests | 21,463 | 21,463 | ||||||||||
Acquisition of subsidiaries | 162,492 | 120,865 | 41,627 | |||||||||
Acquisition of subsidiaries (in shares) | shares | 270,435 | |||||||||||
Purchase of noncontrolling interests | (116,056) | ¥ 1 | 300,728 | (416,785) | ||||||||
Purchase of noncontrolling interests (in shares) | shares | 1,731,100 | |||||||||||
Share issuance from exercise of share options | ¥ 3 | ¥ 3 | ||||||||||
Share issuance from exercise of share options (in shares) | shares | 4,492,000 | 4,492,000 | 4,491,566 | |||||||||
Appropriation to statutory reserves | 4,421 | (4,421) | ||||||||||
Foreign currency translation adjustments | ¥ (325,100) | (325,100) | ||||||||||
Balance at the end of the year at Dec. 31, 2020 | 7,782,204 | ¥ 52 | ¥ 172 | 14,616,302 | 17,884 | 141,129 | (7,175,339) | 182,004 | ||||
Balance at the end of the year (Shares) at Dec. 31, 2020 | shares | 83,715,114 | 268,204,838 | ||||||||||
Net loss | (6,808,739) | $ (1,068,441) | (6,789,228) | (19,511) | ||||||||
Share-based compensation | 999,817 | 999,817 | ||||||||||
Issuance ordinary shares related to long-term investments | ¥ 1 | (1) | ||||||||||
Issuance ordinary shares related to long-term investments (in shares) | shares | 1,045,700 | |||||||||||
Issuance of ordinary shares, net of issuance costs | ¥ 19,266,810 | ¥ 18 | ¥ 19,266,792 | |||||||||
Issuance of ordinary shares, net of issuance costs (in shares) | shares | 28,750,000 | |||||||||||
Share issuance upon the conversion of convertible senior notes | 449,911 | ¥ 3 | 449,908 | |||||||||
Share issuance upon the conversion of convertible senior notes (in shares) | shares | 2,854,277 | |||||||||||
Capital injection in subsidiaries by noncontrolling interests | 2,187 | 2,187 | ||||||||||
Acquisition of subsidiaries | 617,999 | ¥ 1 | 632,747 | (14,749) | ||||||||
Acquisition of subsidiaries (in shares) | shares | 2,056,825 | |||||||||||
Purchase of noncontrolling interests | (173,135) | ¥ 1 | (35,604) | (137,532) | ||||||||
Purchase of noncontrolling interests (in shares) | shares | 715,271 | |||||||||||
Share issuance from exercise of share options | ¥ 3 | ¥ 3 | ||||||||||
Share issuance from exercise of share options (in shares) | shares | 3,263,000 | 3,263,000 | 3,262,562 | |||||||||
Appropriation to statutory reserves | 6,737 | (6,737) | ||||||||||
Foreign currency translation adjustments | ¥ (420,991) | $ (66,063) | (420,991) | |||||||||
Balance at the end of the year at Dec. 31, 2021 | ¥ 21,716,066 | $ 3,407,725 | ¥ 52 | ¥ 199 | ¥ 35,929,961 | ¥ 24,621 | ¥ (279,862) | ¥ (13,971,304) | ¥ 12,399 | |||
Balance at the end of the year (Shares) at Dec. 31, 2021 | shares | 83,715,114 | 306,889,473 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021HKD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance costs | $ 337,143 | $ 563 | $ 9,376 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (6,808,739) | $ (1,068,441) | ¥ (3,054,017) | ¥ (1,303,570) |
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities: | ||||
Depreciation of property and equipment | 538,600 | 84,518 | 326,512 | 191,784 |
Amortization of intangible assets | 1,903,200 | 298,658 | 1,395,129 | 905,613 |
Amortization of right-of-use assets | 161,873 | 25,401 | 96,235 | 70,712 |
Amortization of debt issuance costs | 25,234 | 3,960 | 19,291 | 9,117 |
Share-based compensation expenses | 999,817 | 156,893 | 385,898 | 172,550 |
Allowance for doubtful accounts | 189,165 | 29,684 | 99,165 | 9,396 |
Inventory provision | 24,454 | 3,837 | 6,218 | 5,987 |
Deferred income taxes | (21,492) | (3,373) | (13,466) | (10,479) |
Unrealized exchange losses /(gains) | (6,592) | (1,034) | (3,018) | 2,636 |
Unrealized fair value changes of investments | 200,274 | 31,428 | (50,641) | 36,383 |
Loss on disposal of property and equipment | 611 | 96 | ||
Gain from disposal of subsidiaries and long-term investments | (4,413) | (692) | (148,776) | |
Loss from equity method investments | 37,200 | 5,834 | 50,531 | 24,173 |
Revaluation of previously held equity interests | 31,462 | 4,937 | ||
Impairments of long-term investments | 91,500 | 14,357 | 8,000 | 5,900 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (429,460) | (67,392) | (417,237) | (398,968) |
Amount due from related parties | 8,792 | 1,380 | 17,015 | 7,382 |
Prepayments and other assets | (1,747,744) | (274,258) | (610,592) | (508,515) |
Other long-term assets | (138,396) | (21,717) | (245,224) | (360,497) |
Accounts payable | 1,056,847 | 165,843 | 816,103 | 586,864 |
Salary and welfare payable | 254,213 | 39,892 | 374,442 | 101,788 |
Taxes payable | 77,365 | 12,140 | 54,381 | 23,114 |
Amount due to related parties | (50,331) | |||
Deferred revenue | 494,551 | 77,606 | 734,786 | 353,997 |
Accrued liabilities and other payables | 319,702 | 50,168 | 651,651 | 277,875 |
Other long-term liabilities | 94,969 | 14,903 | 111,941 | 190,416 |
Net cash provided by/(used in) operating activities | (2,647,000) | (415,372) | 753,103 | 194,551 |
Cash flows from investing activities: | ||||
Purchase of property and equipment | (965,410) | (151,494) | (602,122) | (296,044) |
Purchase of intangible assets | (2,721,799) | (427,110) | (1,636,877) | (1,268,830) |
Purchase of short-term investments | (71,748,847) | (11,258,960) | (26,731,176) | (9,973,879) |
Maturities of short-term investments | 60,524,888 | 9,497,676 | 24,921,538 | 9,993,525 |
Cash consideration paid for purchase of subsidiaries, net of cash acquired | (521,984) | (81,911) | (498,854) | (719,909) |
Cash paid for long-term investments including loans | (6,716,491) | (1,053,964) | (1,261,161) | (1,226,794) |
Repayment of loans from investees | 539,225 | 84,616 | 3,500 | 11,000 |
Cash received from disposal/return of long-term assets | 74,604 | 11,707 | 135,254 | 566,554 |
Impact to cash resulting from deconsolidation of a subsidiary | (959) | |||
Placements of time deposits | (10,697,444) | (1,678,662) | (10,907,296) | (4,920,099) |
Maturities of time deposits | 7,655,147 | 1,201,260 | 7,670,373 | 3,877,158 |
Net cash used in investing activities | (24,578,111) | (3,856,842) | (8,906,821) | (3,958,277) |
Cash flows from financing activities: | ||||
Proceeds of short-term loans | 1,332,597 | 209,114 | 200,000 | 141,857 |
Repayment of short-term loans | (214,882) | (33,720) | (100,000) | (100,000) |
Repurchase of noncontrolling interests | (104,696) | (16,429) | (280,271) | (121,325) |
Capital injections from noncontrolling interests | 2,187 | 343 | 103,450 | 154,492 |
Proceeds from exercise of employees' share options | 3 | 3 | 1 | |
Proceeds from issuance of ordinary shares, net of issuance costs of US$9,376, US$563, and HKD337,143, respectively | 19,288,423 | 3,026,774 | 2,817,458 | 1,647,711 |
Proceeds from issuance of convertible senior notes, net of issuance costs of US$11,805, US$13,857 and US$23,402, respectively | 10,085,520 | 1,582,638 | 5,594,779 | 3,356,106 |
Net cash provided by financing activities | 30,389,152 | 4,768,720 | 8,335,419 | 5,078,842 |
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | (319,034) | (50,063) | (466,252) | 107,513 |
Net increase/(decrease) in cash and cash equivalents | 2,844,999 | 446,443 | (284,551) | 1,422,629 |
Cash and cash equivalents at beginning of the year | 4,678,109 | 734,097 | 4,962,660 | 3,540,031 |
Cash and cash equivalents at end of the year | 7,523,108 | 1,180,540 | 4,678,109 | 4,962,660 |
Supplemental disclosures of cash flows information: | ||||
Cash paid for income taxes, net of tax refund | 73,717 | 11,568 | 54,022 | 33,734 |
Cash paid for interest expense | 116,226 | 18,238 | 86,167 | 26,203 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Accretion to redeemable noncontrolling interests | 5,964 | |||
Fixed assets purchases financed by accounts payable | 183,203 | 28,748 | 25,797 | 55,759 |
Acquisitions and investments financed by payables | 731,503 | 114,789 | 125,363 | 79,059 |
Intangible assets purchases financed by payables | 830,596 | 130,339 | 746,404 | ¥ 365,187 |
Issuance of ordinary shares in the business combination, purchase of noncontrolling interests and investment addition | 1,207,980 | 189,558 | ¥ 889,957 | |
Issuance of ordinary shares in connection with debt conversion | ¥ 449,914 | $ 70,601 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Proceeds from issuance of ordinary shares, net of issuance costs | $ 337,143 | $ 563 | $ 9,376 | |
Proceeds from issuance of convertible senior notes, net of inssuance costs | $ 23,402 | 13,857 | 11,805 | |
Ordinary shares | ||||
Proceeds from issuance of ordinary shares, net of issuance costs | $ 337,143 | $ 563 | $ 9,376 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | 1. Operations Bilibili Inc. (the “Company” or “Bilibili”) is an online entertainment platform for young generations. Incorporated as a limited liability company in the Cayman Islands in December 2013, the Company, through its consolidated subsidiaries, variable interest entities (“VIEs”) and subsidiaries of the VIEs (collectively referred to as the “Group”), is primarily engaged in the operation of providing online entertainment services to users in the People’s Republic of China (the “PRC” or “China”). In April 2018, the Company completed its IPO on the NASDAQ Global Select Market. In March 2021, the Company successfully listed its Class Z ordinary shares on the main board of the Hong Kong Stock Exchange. The Company issued a total 28,750,000 Class Z ordinary shares in the global offering, including the fully exercised over-allotment option of 3,750,000 Class Z ordinary shares. Net proceeds from the global offering, including the over-allotment option, after deducting underwriting fees and other offering expenses, were approximately HKD22.9 billion (RMB19.3 billion). As of December 31, 2021, the Company’s major subsidiaries, VIEs and subsidiaries of the VIEs are as follows: Major Subsidiaries Place and Year of Incorporation Percentage of Direct or Economic Ownership Principal Activities Bilibili HK Limited Hong Kong, 2014 100 Investment holding Hode HK Limited Hong Kong, 2014 100 Investment holding Chaodian HK Limited Hong Kong, 2019 100 Investment holding Bilibili Co., Ltd. Japan, 2014 100 Business development Hode Shanghai Limited (“Hode Shanghai”) PRC, 2014 100 Technology development Shanghai Bilibili Technology Co., Ltd. PRC, 2016 100 Technology development Chaodian (Shanghai) Technology Co., Ltd. PRC, 2019 100 E-commerce and advertising Major VIEs and VIEs’ subsidiaries Place and Year of Incorporation Acquisition Percentage of Direct or Indirect Economic Ownership Principal Activities Shanghai Hode Information Technology Co., Ltd. (“Hode Information Technology”) PRC, 2013 100 Mobile game operation Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) PRC, 2014 100 Video distribution and game distribution Sharejoy Network Technology Co., Ltd. (“Sharejoy Network”) PRC, 2014 100 Game distribution Shanghai Hehehe Culture Communication Co., Ltd. (“Shanghai Hehehe”) PRC, 2014 100 Comics distribution Shanghai Anime Tamashi Cultural Media Co., Ltd. (“Shanghai Anime Tamashi”) PRC, 2015 100 E-commerce platform Contractual agreements with major VIEs In order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content services, the Group operates its restricted businesses in the PRC through its VIEs, whose equity interests are held by certain founders of the Group. The Company obtained control over these VIEs by entering into a series of contractual arrangements with the legal shareholders who are also referred to as nominee shareholders. These nominee shareholders are the legal owners of the VIEs. However, the rights of those nominee shareholders have been transferred to the Company through the contractual arrangements. The contractual arrangements that are used to control the VIEs include powers of attorney, exclusive technology consulting and services agreements or exclusive business cooperation agreements, equity pledge agreements and exclusive option agreements. Management concluded that the Company, through the contractual arrangements, has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore the Company is the ultimate primary beneficiary of these VIEs. As such, the Company consolidates the financial statements of these VIEs. Consequently, the financial results of the VIEs were included in the Group’s consolidated financial statements in accordance with the presentation as stated in Note 2(a). The following is a summary of the contractual agreements entered into by and among the Company’s relevant subsidiaries, the VIEs, and respective nominee shareholders of the VIEs. Exclusive Technology Consulting and Services Agreements. Exclusive Option Agreements. Powers of Attorney attorney-in-fact Equity Pledge Agreements. Risks in relation to the VIE structure A significant part of the Group’s business is conducted through the VIEs of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of management, the contractual arrangements with the VIEs and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders are also shareholders of the Group and have indicated they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIE were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. On March 15, 2019, the National People’s Congress approved the Foreign Investment Law, effective on January 1, 2020. The Foreign Investment Law has a catch-all The Company’s ability to control the VIEs also depends on the powers of attorney the founders have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes these powers of attorney are legally enforceable but may not be as effective as direct equity ownership. In addition, if the Group’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing or future PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: • revoke the Group’s business and/or operating licenses; • impose fines on the Group; • confiscate any of the Group’s income that they deem to be obtained through illegal operations; • discontinue or place restrictions or onerous conditions on the Group’s operations • restrict the Group’s right to collect revenues; • shut down the Group’s servers or block the Group’s app/websites; • require the Group to restructure the operations, re-apply • impose additional conditions or requirements with which the Group may not be able to comply; or • take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIEs, which may result in deconsolidation of the VIEs in the Group’s consolidated financial statements. In the opinion of management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group believes that the contractual arrangements among each of the VIEs, their respective individual shareholders and relevant wholly foreign-owned enterprises are in compliance with PRC law and are legally enforceable. The Group’s operations depend on the VIEs to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. Management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those arrangements. Conflicts of interest may arise between the roles of them as shareholders, directors or officers of Group and as shareholders of the VIEs. The following combined financial information of the Group’s VIEs as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 included in the accompanying consolidated financial statements of the Group was as follows: December 31, December 31, RMB in thousands Cash and cash equivalents 349,190 377,114 Time deposits 22,161 6,997 Accounts receivable, net 343,099 524,311 Amounts due from Group companies 173,596 391,951 Amount due from related parties 59,117 101,983 Prepayments and other current assets 1,383,648 1,806,185 Short-term investments 1,175,309 927,124 Long-term investments, net 1,223,943 1,745,466 Other non-current assets 2,183,411 4,926,989 Total assets 6,913,474 10,808,120 Accounts payable 2,332,372 3,164,301 Salary and welfare payables 288,686 343,008 Taxes payable 106,492 128,817 Short-term loans 100,000 400,000 Deferred revenue 1,769,992 2,192,460 Accrued liabilities and other payables 449,370 1,184,523 Amounts due to the Group companies 3,752,973 7,214,146 Amounts due to related parties — 117,901 Other long-term payable 19,640 222,719 Total liabilities 8,819,525 14,967,875 Total Bilibili Inc’s shareholders’ deficit (1,941,724 ) (4,170,459 ) Noncontrolling interests 35,673 10,704 Total shareholders’ deficit (1,906,051 ) (4,159,755 ) Total liabilities and shareholders’ deficit 6,913,474 10,808,120 For the Year Ended December 31, 2019 2020 2021 RMB in thousands Third-party revenues 6,056,332 9,651,207 12,867,536 Inter-company revenues 531,830 667,765 1,574,896 Total revenues 6,588,162 10,318,972 14,442,432 Third-party costs and expenses (5,795,826 ) (9,931,047 ) (16,283,295 ) Inter-company consulting and services costs and expenses (1,266,411 ) (1,021,596 ) (593,272 ) Other inter-company costs and expenses (75,552 ) (201,587 ) (271,096 ) Total costs and expenses (7,137,789 ) (11,154,230 ) (17,147,663 ) Gain/(Loss) from non-operations 122,116 8,368 (163,146 ) Loss before income tax expenses (427,511 ) (826,890 ) (2,868,377 ) Income tax expenses (20,603 ) (27,080 ) (38,997 ) Net loss (448,114 ) (853,970 ) (2,907,374 ) Net loss attributable to noncontrolling interests 1,936 8,501 10,367 Net loss attributable to Bilibili Inc.’s shareholders (446,178 ) (845,469 ) (2,897,007 ) For the Year Ended December 31, 2019 2020 2021 RMB in thousands Consulting and services charges to Group companies (1,579,212 ) (1,074,899 ) (637,787 ) Other operating cashflow from Group companies 1,027,392 586,017 1,683,907 Operating cashflow from/(to) third-parties 823,119 1,965,376 (1,729,079 ) Net cash provided by/(used in) operating activities 271,299 1,476,494 (682,959 ) Purchase of short-term investments (6,535,669 ) (13,973,904 ) (12,610,305 ) Maturities of short-term investments 6,113,861 13,498,485 12,954,425 Placements of time deposits (7,584 ) (25,515 ) (39,318 ) Maturities of time deposits 7,584 7,896 54,319 Other investing activities (1,097,123 ) (1,928,125 ) (3,265,756 ) Net cash used in investing activities (1,518,931 ) (2,421,163 ) (2,906,635 ) Investments and loans from Group companies 1,300,740 990,287 3,307,226 Other financing activities — 100,000 300,000 Net cash provided by financing activities 1,300,740 1,090,287 3,607,226 In accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there are assets in the respective VIEs that can be used only to settle obligations of the respective VIEs, except for the registered capital of the VIEs amounting to RMB million and RMB million, as of December , and , as well as certain non-distributable statutory reserves amounting to RMB million and RMB million, respectively, as of December , and . As the respective VIEs are incorporated as limited liability companies under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIEs. There is currently contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary. Liquidity The Group incurred net losses of RMB1,303.6 million, RMB3,054.0 million and RMB6,808.7 million for the years ended December 31, 2019, 2020 and 2021, respectively. Net cash provided by operating activities was RMB194.6 million, RMB753.1 million for the years ended December 31, 2019 and 2020, respectively, and net cash used in operating activities was RMB2,647.0 million for the year ended December 31, 2021. Accumulated deficit was RMB7,175.3 million and RMB13,971.3 million as of December 31, 2020 and 2021, respectively. The Group assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments. Historically, the Group has relied principally on both operational sources of cash and non-operational convertible senior notes due April 2026 ( “ ”) Corporation of America (“SCA”), a wholly owned subsidiary of Sony Corporation (“Sony”), In , raising HKD22.9 billion (RMB19.3 billion), commissions and December |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company’s subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company’s subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of the average playing period for paying players, and assessment for the impairment of long-term investments accounted for using the measurement alternative. d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The Company and several of its overseas subsidiaries use US$ or their respective local currencies as their functional currency. The functional currency of the Group’s PRC entities is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive income/(loss) on the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in exchange gains/(losses) on the consolidated statements of operations and comprehensive loss. e) Convenience Translation Translations of balances on the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 3 1 f) Fair value measurements Financial instruments Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. 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: a. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. b. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. c. Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash and cash equivalents, time deposits, accounts receivable, amounts due from/to related parties, short-term investments, and accounts payable , short-term loans, accrual liabilities and other payables g) Cash and cash equivalents and time deposits Cash and cash equivalents mainly represent cash on hand, demand deposits placed with large reputable banks in the United States of America and China, and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months or less. As of December 31, 2020 and 2021, there were cash on hand and demand deposits with terms of and less than three months denominated in U.S. dollars amounting to approximately US$582.2 million and US$999.9 million, respectively (equivalent to approximately RMB3,798.5 million and RMB6,375.1 million, respectively). As of December 31, 2020 and 2021, the Group had cash held in accounts managed by online payment platforms such as Alipay and Paypal in connection with the collection of online service fees for a total amount of RMB42.0 million and RMB50.7 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets. As of December 31, 2020 and 2021, the Group had approximately RMB2,144.5 million and RMB1,554.5 million cash and cash equivalents held by its PRC subsidiaries and VIEs, representing 46% and 21% of total cash and cash equivalents of the Group, respectively. Time deposits represent deposits placed with banks with original maturities more than three months but less than one year. As of December 31, 2020 and 2021, there were time deposits denominated in U.S. dollars amounting to approximately US$721.1 million and US$1,197.1 million, respectively (equivalent to approximately RMB4,705.1 million and RMB7,632.3 million, respectively). The Group had no other lien arrangements for the years ended December 31, 2019, 2020 and 2021. As of December 31, 2020 and 2021, the Group had no restricted cash balance. h) Receivables, net Prior to January 1, 2020, the Group monitors the collection of its receivables and records allowance for specifically identified non-recoverable Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments The Group’s accounts receivable and other receivables recorded in prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from advertising customers, and receivables from distribution channels. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The Group recorded a provision for current expected credit loss. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Beginning balance prior to ASC 326 — 17,696 — Impact of adoption to ASC 326 — 17,900 — Beginning balance 14,420 35,596 121,003 Provisions 9,396 99,165 189,165 Write-offs (6,120 ) (13,758 ) (17,695 ) Ending balance 17,696 121,003 292,473 i) Inventories, net Inventories, mainly represent products for the Group’s e-commerce j) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized on the consolidated statements of operations and comprehensive loss. k) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Purchased intangible assets are initially recognized and measured at fair value. Major identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Licensed copyrights of content shorter of the licensed period or projected useful life of the content, mainly vary from 1 to 8 years License rights of mobile games shorter of the licensed period or projected useful life of mobile games, mainly vary from 1 to 3 years Intellectual property and others 1 to If expectations of the usefulness of the content are revised downward, the unamortized cost is written down to the fair value, which establishes a new cost basis. l) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event or circumstances change occurs that indicate the asset might be impaired. Under ASC 350-20-35, The Group applies the quantitative impairment test, which consists of a two-step two-step On January 1, 2020, the Group adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The estimated fair value of reporting unit is determined using either an income approach or a market approach, when appropriate. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. The Group as a whole is determined to be one reporting unit for goodwill impairment testing. The Group applied the quantitative assessment and performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to its carrying amounts. The Group determines the fair value of the reporting unit based on its quoted stock price, and no impairment charge was recognized for any of the periods presented. m) Impairment of long-lived assets other than goodwill Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. n) Research and development expenses Research and development expenses mainly consist of payroll-related expenses incurred for the innovation of video function, development and enhancement to the Group’s websites and platforms of applications and development of online games. For internal use software, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platforms. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Group’s research and development expenses qualifying for capitalization has been immaterial, as a result, all development costs incurred for development of internal used software have been expensed as incurred. For external use software, costs incurred for development of external use software have not been capitalized since the inception of the Group, because the period after the date technical feasibility is reached and the time when the software is marketed is short historically, and the amount of costs qualifying for capitalization has been immaterial. o) Sales and marketing expenses Sales and marketing expenses consist primarily of marketing and promotional expenses, salaries and other compensation-related expenses to the Group’s sales and marketing personnel. Marketing and promotional expenses consist primarily of costs for the promotion of corporate image and product marketing. The Group expenses all marketing and promotion costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2019, 2020 and 2021, the marketing and promotional expenses were RMB934.7 million, RMB3,006.0 million and RMB5,102.9 million, respectively. p) General and administrative expenses General and administrative expenses consist primarily of salaries and other compensation-related expenses to the Group’s general and administrative personnel, professional fees, rental expenses and allowance for doubtful accounts. q) Leases On January 1, 2019, the Group adopted ASU No. 2016-02, “ Leases (Topic 842) The Group elected to apply practical expedients permitted under the transition method that allow the Group not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease Right-of-use . The Group leases office space and staff quarters under non-cancelable 2026 December 31, 2021 RMB in thousands 2022 207,531 2023 148,596 2024 87,763 2025 49,981 2026 and thereafter 3,735 Total future lease payments 497,606 Impact of discounting remaining lease payments (41,635 ) Total lease liabilities 455,971 Operating lease cost for the year ended December 31, 2019, 2020 and 2021 was RMB79.4 million, RMB107.2 million and RMB177.4 million, respectively, which excluded cost of short-term contracts. Short-term lease cost for the year ended December 31, 2019, 2020 and 2021 was immaterial. Supplemental cash flow information related to operating leases was as follows: For the Year Ended December 31, 2020 2021 RMB in thousands Cash payments for operating leases 107,772 161,997 Right-of-use 260,867 152,481 r) Share-based compensation Share based compensation expenses arise from share-based awards, including share options for the purchase of the Company’s ordinary shares. The Group accounts for share-based awards granted to employees in accordance with ASC 718 Compensation - Stock Compensation non-employees For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rates and expected dividends. For share options granted with service conditions only, share-based compensation expenses are recorded net of estimated forfeitures using straight-line method during the requisite service period, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. For share options granted with service condition and the occurrence of an US IPO as performance condition, share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the requisite service period. s) Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. t) Investments Short-term investments Short-term investments primarily include money market funds, financial products with variable interest rates referenced to performance of underlying assets issued by commercial banks or other financial institutions and publicly traded companies with the intention to be sold within twelve months. In accordance with ASC 825, Financial Instruments /(loss), net (including impairments)”. For the investments in publicly traded companies, the Group carries the investments at fair value at the end of each reporting period. Changes in the fair value of these investments are reflected on the consolidated statements of operations and comprehensive loss as “Investment income/(loss), net (including impairments)”. Long-term investments, net The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the equity method and other investments accounted for at fair value. Equity investments accounted for using the measurement alternative For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group records them at cost, less impairment, and plus or minus subsequent adjustments for observable price changes (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Management regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized equals to the excess of the investment cost over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Equity investments accounted for using the equity method The Group applies the equity method of accounting to account for equity investments and limited partnership in a private equity fund, according to ASC 323 Investment—Equity Method and Joint Ventures Investments accounted for at fair value In accordance with ASC 825, Financial Instruments u) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the assets and liabilities method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of operations and comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more-likely-than-not two-step two-step more-likely-than-not v) Revenue recognition Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. The Group’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Mobile game services Exclusively distributed mobile games For the years ended December 31, 2019, 2020 and 2021, the Group primarily generates revenues from the sale of in-game In accordance with ASC 606, the Group evaluates the contracts with its customers and determines that the Group has a single performance obligation which is to make the game and the ongoing game related services available to the paying players. The transaction price, which is the amount paid for in-game in-game point-in-time in-game The Group has estimated the average playing period of the paying players for each game, usually between two to nine months. The Group considers the average period that players typically play the games and other game player behavior patterns, as well as various other factors to arrive at the best estimates for the estimated playing period of the paying players. To compute the estimated average playing period for paying players, the Group considers the initial purchase date as the starting point of a paying player’s lifespan. The Group tracks populations of paying players who made their initial purchases during the interval period (the “Cohort”) and tracks each Cohort to understand the subsequent churn rate of the paying players of each Cohort, i.e. the number of paying players from each Cohort who left subsequent to their initial purchases. To determine the ending point of a paying player’s lifespan beyond the date for which observable data are available, the Group extrapolates the actual observed churn rate to arrive at an estimated weighted average playing lifespan for paying players of the selected games. If a new game is launched and only a limited period of paying player data is available, then the Group considers other qualitative factors, such as the playing patterns for paying players for other games with similar characteristics with the new game, including paying player type and purchasing frequency. While the Group believes its estimates to be reasonable based on available game player information, the Group may revise such estimates based on new information indicating a change in the game player behavior patterns and any adjustments are applied prospectively. In accordance with ASC 606-10-55-39, in-game in-game Proceeds earned from selling in-game Jointly operated mobile game distribution services The Group is also offering distribution services for mobile games developed by the third-party game developers. In accordance with ASC 606, the Group evaluates the contracts with the third-party game developers and identifies the performance obligations as distributing games and providing payment solution and market promotion service to the game developers. Accordingly, the Group earns service revenue by distributing them to the game players. In accordance with ASC 606-10-55-39, pre-determined Valued added services (“VAS”) The Group offers premium membership subscription , live broadcasting, comic and other paid contents to the customers. The Group offers premium membership services which provide subscribing members access to streaming of premium content in exchange for a non-refundable The Group operates and maintains live broadcasting channel whereby users can enjoy live performances provided by the hosts and interact with the hosts. Most of the hosts host the performance on their own. The Group creates and sells virtual items to users so that the users present them simultaneously to hosts to show their support. The virtual items sold by the Group comprise of either (i) consumable items or (ii) time-based items, such as privilege titles etc. Revenues derived from the sale of virtual items are recorded on a gross basis as the Group acts as the principal to fulfill all obligations related to the sale of virtual items in accordance with ASC 606-10-55-39. point-in-time Under the arrangements with the hosts, the Group shares with them a portion of the revenues derived from the sales of virtual items. The portion paid to hosts is recognized as “Cost of revenues” on the consolidated statements of operations and comprehensive loss. Advertising services The Group provides various advertising formats, mainly include but not limited to advertisements appearing on the app opening page, banner text-links, logos, buttons and rich media, performance-based advertising and native advertisements which are customized according to advertisers’ needs. The Group determines each format of advertisements which is a distinct performance obligation. Consideration is allocated to each performance obligation based on its standalone selling price. The Group recognizes revenue on a pro-rata Sales incentives to customers The Group provides various sales incentives to its customers, including cash incentives in the form of commissions to certain third-party advertising agencies and noncash incentives such as discounts and advertising services provided free of charge in certain bundled arrangements, which are negotiated on a contract by contract basis with customers. The Group accounts for these incentives granted to customers as variable consideration in accordance with ASC 606. The amount of variable consideration is measured based on the most likely amount of incentive to be provided to customers. E-commerce E-commerce e-commerce E-commerce 606-10-55-39, 606-10-32-25. Net revenues presented on the consolidated statements of operations and comprehensive loss are net of sales discount and sales tax. Other Estimates and Judgments The Group estimates revenue of mobile game, VAS from the third-party payment processors in the current period when reasonable estimates of these amounts can be made. The processors provide reliable interim preliminary reporting within a reasonable time frame following the end of each month and the Group maintains records of sales data, both of which allow the Group to make reasonable estimates of revenue and therefore to recognize revenue during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Group believes are reasonable, but actual results may differ from the Group’s estimates. When the Group receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Group records any differences between estimated revenue and actual revenue in the reporting period when the Group determines the actual amounts. The revenue on the final revenue report have not differed significantly from the reported revenue for the periods presented. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to consideration. Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from game players in mobile games, from customers in advertising services, live broadcasting services and other VAS, and e-commerce Practical expedients The Group has used the following practical expedients as allowed under ASC 606: The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed, as substantially all of the contracts have an original expected duration of one year or less. The Group expenses the costs to obtain a contract as incurred when the amortization period is one year or less. The following table presents the Group’s net revenues disaggregated by revenue sources: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Mobile games 3,597,809 4,803,382 5,090,926 Value-added services 1,641,043 3,845,663 6,934,886 Advertising 817,016 1,842,772 4,523,421 E-commerce 722,054 1,507,159 2,834,451 Total net revenues 6,777,922 11,998,976 19,383,684 w) Cost of revenues Costs of revenues consist primarily of revenue sharing costs to mobile games developers and distribution channels and payment channels, revenue sharing with the hosts and content creators, staff costs, content costs, server and bandwidth service costs, depreciation expenses and other direct costs of providing these services as well as cost of merchandise sold. These costs are charged to the consolidated statements of operations and comprehensive loss as incurred. x) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareh |
Concentrations and Risks
Concentrations and Risks | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations and Risks | 3. Concentrations and Risks a) Telecommunications service provider The Group relied on telecommunications service providers and their affiliates for servers and bandwidth services to support its operations for the years ended December 31, 2019, 2020 and 2021 as follows: For the Year Ended 2019 2020 2021 RMB in thousands Total number of telecommunications service providers 107 116 126 Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure 2 3 3 Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers 45 % 55 % 55 % b) Foreign currency exchange rate risk The functional currency and the reporting currency of the Company are U.S. dollars and RMB, respectively. The Group’s exposure to foreign currency exchange rate risk primarily relates to cash and cash equivalents, time deposits, short-term and long-term investments, long-term debt and accounts payable denominated in the U.S. dollars. Most of the Group’s revenues, costs and expenses are denominated in RMB, while the long-term debt and a portion of cash and cash equivalents, time deposits, short-term and long-term investments, and accounts payable are denominated in U.S. dollars. Any significant fluctuation of RMB against U.S. dollars may materially and adversely affect the Company’s cash flows, revenues, earnings and financial positions. c) Credit risk The Group’s financial instruments potentially subject to significant concentrations of credit risk primarily consist of cash and cash equivalents, time deposits, accounts receivable, and money market funds and financial products with variable interest rates referenced to performance of underlying assets issued by commercial banks and other financial institutions. As of December 31, 2020 and 2021, substantially all of the Group’s cash and cash equivalents and time deposits were held in major financial institutions located in the United States of America and China, which management consider being of high credit quality. Accounts receivable is typically unsecured and is primarily derived from revenue earned from mobile game services (mainly relates to remittances due from payment channels and distribution channels) and advertising services. There was no individual payment channel that had receivable balance exceeding 10% of the Group’s accounts receivable balance as of December 31, 2020 and 2021. One distribution channel had receivable balance exceeding 10% of the Group’s accounts receivable balance as of December 31, 2020 and 2021, respectively, as follows: RMB in thousands December 31, December 31, Distribution channel A 146,907 171,680 d) Major customers and supplying channels No single customer represented 10% or more of the Group’s net revenues for the years ended December 31, 2019, 2020 and 2021. The Group relied on a distribution channel to publish and generate the iOS version of its mobile games. Mobile game revenues generated through this distribution channel accounted for approximately 17%, 11% of the Group’s total net revenues for the years ended December 31, 2019 and 2020, respectively. And there is no single distribution channel of mobile games generated 10% or more of the Group’s net revenues for the years ended December 31, 2021. e) Mobile games Mobile game revenues accounted for 53%, 40% and 26% of the Group’s total net revenues for the years ended December 31, 2019, 2020 and 2021, respectively. One mobile game individually contributing more than 10% of the Group’s total net revenues for the years ended December 31, 2019, 2020 was as follows. No mobile games individually contributed more than 10% of the Group’s total net revenues for the year ended December 31, 2021. For the Year Ended December 31, 2019 2020 2021 Mobile game 1 31 % 11 % N/A |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 4. Prepayments and Other Current Assets The following is a summary of prepayments and other current assets: December 31, December 31, RMB in thousands Prepayments for revenue sharing cost* 782,518 1,117,431 Prepayments for sales tax 202,025 523,282 Inventories, net 160,006 455,767 Prepayments of marketing and other operational expenses 64,068 181,764 Deposits 51,661 106,555 Prepayments to inventory suppliers 19,970 94,746 Prepayments for content cost 195,175 73,496 Loans to investees or ongoing investments 187,672 68,681 Prepayments /receivables relating to jointly invested content 28,664 36,246 Interest income receivable 6,396 10,927 Others 67,632 138,153 Total 1,765,787 2,807,048 * App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheets as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going end-users. |
Short-term Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Investments [Abstract] | |
Short-term Investments | 5. Short-term Investments The following is a summary of short-term investments: December 31, 2020 December 31, 2021 RMB in thousands Financial products 2,866,643 13,583,580 Investments in publicly traded companies 434,609 1,426,946 Money market funds 55,937 50,196 Total 3,357,189 15,060,722 For the years ended December 31, 2019, 2020 and 2021, the Group recorded investment loss of RMB3.1 million, investment income of RMB74.0 million and investment income of RMB138.3 million related to short-term investments on the consolidated statements of operations and comprehensive loss, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net The following is a summary of property and equipment, net: December 31, 2020 December 31, 2021 RMB in thousands Leasehold improvements 118,581 221,280 Servers and computers 1,286,310 2,277,947 Others 30,750 59,871 Total 1,435,641 2,559,098 Less: accumulated depreciation (673,700 ) (1,208,842 ) Net book value 761,941 1,350,256 Depreciation expenses were RMB191.8 million, RMB326.5 million and RMB538.6 million for the years ended December 31, 2019, 2020 and 2021, respectively. The Group had performed the impairment assessment of property and equipment and considered the relevant events and circumstances that might indicate potential impairment and concluded that there was no impairment indicator. No impairment was recognized for any of periods presented. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | 7. Intangible Assets, Net The following is a summary of intangible assets, net: As of December 31, 2020 Gross Accumulated Net RMB in thousands Licensed copyrights of content 4,556,683 (2,891,742 ) 1,664,941 License rights of mobile games 299,786 (119,493 ) 180,293 Intellectual property and others 753,282 (241,557 ) 511,725 Total 5,609,751 (3,252,792 ) 2,356,959 As of December 31, 2021 Gross Accumulated Net RMB in thousands Licensed copyrights of content 5,567,213 (3,245,622 ) 2,321,591 License rights of mobile games 455,687 (229,559 ) 226,128 Intellectual property and others 1,674,232 (386,351 ) 1,287,881 Total 7,697,132 (3,861,532 ) 3,835,600 Amortization expenses were RMB905.6 million, RMB1,395.1 million and RMB 1,903.2 million for the years ended December 31, 2019, 2020 and 2021, respectively. The Group had performed impairment assessment of intangible assets and considered the relevant events and circumstances that might indicate potential impairment and concluded that there was no impairment indicator. No impairment charge was recognized for any of the periods presented. As of December 31, 2021, the licensed copyrights of content have weighted-average useful lives of 3.6 years. The intangible assets amortization expense for future years is expected to be as follows: Intangible assets amortization expense RMB in thousands 2022 1,300,530 2023 918,258 2024 589,221 2025 337,846 2026 264,088 Thereafter 425,657 Total expected amortization expense 3,835,600 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination, Goodwill [Abstract] | |
Goodwill | 8. Goodwill December 31, December 31, RMB in thousands Beginning balance 1,012,026 1,295,786 Additions (Note 24) 283,760 1,042,517 Ending balance 1,295,786 2,338,303 No impairment charge was recognized for the years ended December 31, 2019, 2020 and 2021, respectively. |
Long-term Investments, Net
Long-term Investments, Net | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments [Abstract] | |
Long-term Investments, Net | 9. Long-term Investments, Net The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the equity method and other investments accounted for at fair value. December 31, December 31, RMB in thousands Equity investments accounted for using the measurement alternative 1,791,393 3,344,465 Equity investments accounted for using the equity method 188,199 1,235,289 Investments accounted for at fair value 253,346 922,770 Total 2,232,938 5,502,524 Equity investments using the measurement alternative The Group did not disclose the fair value of alternative measure method investments if it is not practicable to estimate the fair value of its alternative measure method investments for which a quoted market price is not available due to both excessive cost as well as lack of available information on fair value of such investments. Specifically, many of the investees are start-up Nil, nil and RMB31.5 million re-measurement loss of equity investments accounted for using the measurement alternative was recognized for the years ended December 31, 2019, 2020 and 2021, respectively. The Group recorded impairment charges for long-term investments of RMB5.9 million, RMB8.0 million and RMB91.5 million as “Investment income /(loss), (including impairments)” Equity investments accounted for using the equity method RMB24.2 million, /(loss), net (including impairments)” Investments accounted for at fair value Investments accounted for at fair value primarily include financial products with variable interest rates referenced to performance of underlying assets and with original maturities great than one year and investments in publicly traded companies with an intention of holding greater than one year. A gain of RMB13.2 million, RMB24.9 million and a loss of RMB156.0 million resulted from the change in fair value was recognized in “Investment income /(loss), net (including impairments)” |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Taxation | |
Taxation | 10. Taxation Composition of income tax The following table presents the composition of income tax expenses for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Current income tax expenses 29,452 48,081 102,715 Withholding income tax expenses 16,894 18,754 14,066 Deferred tax benefits (10,479 ) (13,466 ) (21,492 ) Total 35,867 53,369 95,289 a) Income taxes Cayman Islands Under the current laws of the Cayman Islands, the Company and its intermediate holding companies in the Cayman Islands are not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company or its subsidiaries in the Cayman Islands to their shareholders, no withholding tax will be imposed. British Virgin Islands (“BVI”) Subsidiaries in the BVI are exempted from income tax on their foreign-derived income in the BVI. There are no withholding taxes in the BVI. Hong Kong Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. The payments of dividends by these companies to their shareholders are not subject to any withholding tax in Hong Kong. Commencing from the year of assessment of 2019, 2020 and 2021, the first HK$2 million of profits earned by the Company’s subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e. 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate. China On March 16, 2007, the National People’s Congress of the PRC enacted the Enterprise Income Tax (“EIT”) Law, under which FIEs and domestic companies would be subject to EIT at a uniform rate of 25%. Preferential tax treatments will continue to be granted to FIEs or domestic companies which conduct businesses in certain encouraged sectors and to entities otherwise classified as “Software Enterprises”, “Key Software Enterprises”, “Encouraged Enterprises” and/or “High and New Technology Enterprises” (“HNTEs”). The EIT Law became effective on January 1, 2008. The aforementioned preferential tax rates are subject to annual review by the relevant tax authorities in China. Certain subsidiaries were qualified as HNTEs or Encouraged Enterprises and enjoyed a preferential income tax rate at 15% for the corresponding years from the year they are qualified, respectively, provided that they continue to qualify as HNTEs or Encouraged Enterprises during such periods. The following table presents a reconciliation of the differences between the statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 % % % Statutory income tax rate 25.00 25.00 25.00 Permanent differences (0.83 ) 0.60 (1.19 ) Tax rate difference from statutory rate in other jurisdictions* (0.39 ) (3.90 ) (1.43 ) Tax effect of preferential tax treatments (8.48 ) (8.29 ) (7.94 ) Withholding tax (1.33 ) (0.63 ) (0.21 ) Change in valuation allowance (16.80 ) (14.56 ) (15.65 ) Effective income tax rate (2.83 ) (1.78 ) (1.42 ) * It is primarily due to the tax effect of the Company as a tax-exempt As of December 31, 2021, certain entities of the Group had net operating tax loss carry forwards as follows: RMB in Loss expiring in 2022 42,591 Loss expiring in 2023 100,218 Loss expiring in 2024 200,747 Loss expiring in 2025 286,268 Loss expiring in 2026 and thereafter 9,155,679 Total 9,785,503 b) Sales tax The Group’s subsidiaries and VIEs incorporated in China are subject to value added tax (“VAT”) for services rendered at a rate of 6% and for goods sold at a rate varying from 0% to 16% depending on their categories in different periods. All Entities in China are also subject to surcharges on value-added tax payments in accordance with PRC law. In addition, the Group’s advertising and marketing revenues are also subject to culture business construction fee at a rate of 3%, which was reduced to 1.5% since July 1, 2019, valid until December 31, 2024. c) Deferred tax assets and liabilities The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities as of December 31, 2020 and 2021: December 31, December 31, RMB in thousands Deferred tax assets: Deferred revenue 163,620 143,688 Accrued expenses and other payables 128,886 150,092 Advertising expenses in excess of deduction limit 65,674 130,720 Net operating tax loss carry forwards 621,035 1,662,884 Others 19,036 71,048 Total deferred tax assets 998,251 2,158,432 Less: valuation allowance (977,333 ) (2,122,077 ) Net deferred tax assets 20,918 36,355 Deferred tax liabilities : Acquired intangible assets (Note 24) (46,112 ) (82,191 ) Total deferred tax liabilities (46,112 ) (82,191 ) Realization of the net deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss or credit carry forwards. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity more-likely-than-not The following table sets forth the movement of the aggregate valuation allowances for deferred tax assets for the periods presented: Balance at Re-measurement due to Addition Expiration of loss carry Balance at RMB in thousands 2019 (293,955 ) — (248,896 ) 5,492 (537,359 ) 2020 (537,359 ) 105 (484,445 ) 44,366 (977,333 ) 2021 (977,333 ) — (1,154,342 ) 9,598 (2,122,077 ) d) Withholding income tax on dividends The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident To the extent that subsidiaries and VIEs of the Group have undistributed earnings, the Group will accrue appropriate expected withholding tax associated with repatriation of such undistributed earnings. As of December 31, 2020 and 2021, the Group did not record any withholding tax on the retained earnings of its subsidiaries and VIEs in the PRC as most of which were still in accumulated deficit position. |
Taxes Payable
Taxes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Payable | |
Taxes Payable | 11. Taxes Payable The following is a summary of taxes payable as of December 31, 2020 and 2021: December 31, 2020 December 31, 2021 RMB in thousands EIT payable 31,181 69,773 VAT payable 50,881 52,614 Withholding individual income taxes for employees 20,465 44,968 Withholding income tax payable 18,300 29,242 Others 6,365 7,173 Total 127,192 203,770 |
Short-Term Loan
Short-Term Loan | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-term loans | 12. Short-term loans Short-term loans consist of the following: Interest Rate range Maturity Date Balance at December 31, 2020 RMB in thousands Unsecured bank loans 3.70% within 12 months 100,000 Interest Rate range Maturity Date Balance at December RMB in thousands Unsecured bank loans 3.60%~3.70% within 12 months 943,658 Unsecured borrowing 3.95% within 12 months 288,448 Total 1,232,106 |
Accrued Liabilities and Other P
Accrued Liabilities and Other Payables | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Payables | |
Accrued Liabilities and Other Payables | 1 3 Accrued Liabilities and Other Payables The following is a summary of accrued liabilities and other payables as of December 31, 2020 and 2021: December 31, December 31, RMB in thousands Accrued marketing expenses 783,455 1,321,776 Consideration payable for acquisitions and investments 125,363 526,453 Leasing liabilities - current portion 150,402 206,758 Payables to producers and licensors 63,307 139,951 Professional fees 38,573 64,510 Interest payable 14,041 26,469 Advances from/payables to third parties 5,869 14,386 Other staff related cost 13,872 5,325 Others 42,794 111,327 Total 1,237,676 2,416,955 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 1 4 Long-term Debt April 2026 Notes In April 2019, the Group issued US$500.0 million of April 2026 Notes with an interest rate of 1.375% per annum. The net proceeds to the Company from the issuance of the April 2026 Notes were US$488.2 million (RMB3,356.1 million), net of issuance costs of US$11.8 million (RMB81.1 million). The April 2026 Notes may be converted, at an initial conversion rate of 40.4040 ADSs per US$1,000 principal amount (which represents an initial conversion price of US$24.75 per ADS) at each holder’s option at any time prior to the close of business on the second business day immediately preceding the maturity date of April 1, 2026. Holders of the April 2026 Notes may require the Company to repurchase all or part of their April 2026 Notes in cash on April 1, 2024 or in the event of certain fundamental changes at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. The issuance costs of the April 2026 Notes were amortized to interest expense over the contractual life to the maturity date (i.e., April 1, 2026). For the year ended December 31, 2019, 2020 and 2021, the April 2026 Notes related interest expense was US$6.4 million (RMB44.9 million), US$8.5 million (RMB58.6 million) and US$7.6 million (RMB49.1 million), respectively. 2027 Notes In June 2020, the Group issued US$800.0 million of 2027 Notes with an interest rate of 1.25% per annum. The net proceeds to the Company from the issuance of the 2027 Notes were US$786.1 million (RMB5,594.8 million), net of issuance costs of US$13.9 million (RMB98.6 million). The 2027 Notes may be converted, at an initial conversion rate of 24.5516 ADSs per US$1,000 principal amount (which represents an initial conversion price of US$40.73 per ADS) at each holder’s option at any time prior to the close of business on the second business day immediately preceding the maturity date of June 15, 2027. Holders of the 2027 Notes may require the Company to repurchase all or part of their 2027 Notes in cash on June 15, 2023 and June 15, 2025, or in the event of certain fundamental changes at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. The issuance costs of the 2027 Notes were amortized to interest expense over the contractual life to the maturity date (i.e., June 15, 2027). For the year ended December 31, 2020 and 2021, the 2027 Notes related interest expense was US$6.9 million (RMB46.8 million) and US$11.9 million (RMB76.8 million), respectively. December 2026 Notes In November 2021, the Group issued US$1,600 million of December 2026 Notes with an interest rate of 0.50% per annum. The net proceeds to the Company from the issuance of the December 2026 Notes were US$1,576.6 million (RMB10.1 billion), net of issuance costs of US$23.4 million (RMB149.6 million). The December 2026 Notes may be converted, at an initial conversion rate of 10.6419 ADSs per US$1,000 principal amount (which represents an initial conversion price of US$93.97 per ADS) at each holder’s option at any time prior to the close of business on the second business day immediately preceding the maturity date of December 1, 2026. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs or a combination of cash and ADSs, at the Company’s election. Holders of the Notes may elect to receive Class Z ordinary shares in lieu of any ADSs deliverable upon conversion. Holders of the December 2026 Notes may require the Company to repurchase all or part of their December 2026 Notes in cash on December 1, 2024, or in the event of certain fundamental changes at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. The issuance costs of the December 2026 Notes were amortized to interest expense over the contractual life to the maturity date (i.e., December 1, 2026). For the year ended December 31, 2021, the December 2026 ). The Company accounted for the April 2026 Notes, 2027 Notes and December 2026 Notes as single instruments as “Long-term debt” measured at its amortized cost, as none of the embedded features require bifurcation and recognition as derivatives and the April 2026 Notes, 2027 Notes and December 2026 Notes were not issued with a substantial premium. The issuance costs were recorded as an adjustment to the long-term debt and are amortized as interest expense using the effective interest method. As of December 31, 2020 and 2021, the principal amount of April 2026 Notes was RMB3,262.5 million and RMB2,737.5 million, respectively. The unamortized debt issuance costs were RMB58.1 million and RMB39.8 million as of December 31, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the principal amount of 2027 Notes was RMB5,219.9 million and RMB5,100.6 million, respectively. The unamortized debt issuance costs were RMB83.3 million and RMB69.2 million, respectively, as of December 31, 2020 and 2021. As of December 31, 2021, the principal amount of December 2026 Notes was RMB10,201.1 million. The unamortized debt issuance costs were RMB146.0 million as of December 31, and 2021. During the year ended 2021, US$70.6 million in aggregate principal amount of April 2026 Notes were converted, pursuant to which the Company issued 2,854,253 ADSs to the holders of such Notes. Accordingly, the balance of the notes converted were derecognized and recorded as ordinary shares and additional paid-in capital. During the year ended 2021, US$1,000 in aggregate principal amount of 2027 Notes were converted, pursuant to which the Company issued 24 ADSs to the holders of such Notes. Accordingly, the balance of the notes converted were derecognized and recorded as ordinary shares and additional paid-in capital. The following table provides a summary of the Company’s unsecured senior notes as of December 31, 2020 and December 31, 2021: December 31, 2020 December 31, 2021 Effective interest rate Amounts Amounts RMB in thousands April 2026 Notes 3,204,309 2,697,698 1.74 % 2027 Notes 5,136,613 5,031,312 1.52 % December 2026 Notes — 10,055,082 0.80 % Carrying value 8,340,922 17,784,092 Unamortized discount and debt issuance costs 141,448 255,033 Total principal amounts of unsecured senior notes 8,482,370 18,039,125 As of December 31, 2021, the fair value of long-term debt, based on Level 2 inputs, was RMB21.2 billion. As of December 31, 2021, RMB153.7 million, RMB457.2 million and RMB18.2 billion in aggregate principle amount and interest expenses related to the above unsecured senior notes are expected to be repaid within one year, in 1-3 years and 3 years afterwards, respectively, unless earlier converted, redeemed or repurchased. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2021 | |
Ordinary shares | |
Ordinary shares | 1 5 Ordinary Shares In April 2019, the Company completed the Primary Offering. The total net proceeds to the Company, after deducting commissions and offering expenses, were US$245.7 million (RMB1,647.7 million). In April 2020, 17,310,696 ADSs, representing 17,310,696 Class Z Ordinary Shares, were issued and sold to Sony. The net proceeds to the Company from the offering, after deducting offering expenses, were US$399.4 million (RMB2,817.5 million). In March 2021, the Company |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Employee Benefits | 16. Employee Benefits The Company’s subsidiaries and VIEs incorporated in China participate in a government-mandated multi-employer defined contribution plan under which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s Chinese subsidiaries and VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; hence, the Group has no further commitments beyond its monthly contribution. The following table presents the Group’s employee welfare benefits expenses for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Contributions to medical and pension schemes 215,553 195,655 695,310 Other employee benefits 24,180 40,216 65,990 Total 239,733 235,871 761,300 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 17. Share-based Compensation a) Description of share option plans In July 2014, the Group adopted its Global Share Incentive Plan (the “Global Share Plan”), which permits the grant of options, restricted shares and restricted share units of the Company to relevant directors, officers, other employees and consultants of the Group. The maximum aggregate number of Class Z Ordinary Shares, which may be issued pursuant to all awards under the Global Share Plan, is 19,880,315 shares. In February 2018, the Group adopted its 2018 Share Incentive Plan (the “2018 Plan”) to provide additional incentives to employees, directors and consultants and promote the success of our business. The maximum aggregate number of Class Z Ordinary Shares, which may be issued pursuant to all awards under the 2018 Plan as at December 31, 2021, is 23,367,875 shares. Option awards are granted with an exercise price determined by the Board of Directors. Those option awards generally vest over a period of two six As of December 31, 2021, total unrecognized compensation expenses related to unvested awards granted under the Global Share Plan and the 2018 Plan, adjusted for estimated forfeitures, was RMB 4,497.6 million, which is expected to be recognized over a weighted-average period of 4.2 years and may be adjusted for future changes in estimated forfeitures. b) Valuation assumptions The Group uses binomial option pricing model to determine the fair value of share options. The estimated fair value of each share option granted is estimated on the date of grant using the binomial option-pricing model with the following assumptions: For the Year Ended December 31, 2019 2020 2021 Expected volatility 49.6%-52.1% 50.1%-55.0% 53.0%-53.5% Weighted average volatility 50.8% 51.9% 53.2% Expected dividends — — — Risk-free rate 1.4%-2.4% 0.4%-0.7% 0.9%-1.4% Contractual term (in years) 6 6-7 6-7 The expected volatility at each grant date was estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable peer companies with a time horizon close to the expected expiry of the term of the share options. The weighted average volatility is the expected volatility at the grant date weighted by the number of the share options. The Company has never declared or paid any cash dividends on its capital stock, and the Company does not anticipate any dividend payments in the foreseeable future. Contractual term is the remaining contract life of the share options. The Group estimated the risk-free interest rate based on the yield to maturity of U.S. treasury bonds denominated in US dollars at the share option grant date. (c) Share options activities The following table presents a summary of the Group’s share options activities for the years ended December 31, 2019, 2020 and 2021: Employees Senior Consultants Total Weighted Weighted Aggregate (In thousands) (In thousands) (In thousands) (In thousands) US$ (In years) (RMB in Outstanding at January 1, 2019 7,641 4,235 438 12,314 0.0001 4.46 1,233,028 Granted 2,464 730 — 3,194 0.0001 Exercised (1,352 ) (710 ) (193 ) (2,255 ) 0.0001 Forfeited (479 ) (600 ) — (1,079 ) 0.0001 Outstanding 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Outstanding at January 1, 2020 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Granted 6,966 8,700 50 15,716 2.9007 Exercised (2,784 ) (1,643 ) (65 ) (4,492 ) 0.0001 Forfeited (1,101 ) — — (1,101 ) 0.4234 Outstanding at December 31, 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Outstanding 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Granted 3,927 — 21 3,948 0.0001 Exercised (2,094 ) (1,101 ) (68 ) (3,263 ) 0.0001 Forfeited (472 ) — — (472 ) 0.0001 Outstanding at December 31, 12,716 9,611 183 22,510 2.0010 5.01 6,372,503 Exercisable at December 31, 952 950 150 2,052 0.0001 3.99 606,974 The weighted average grant date fair value of share options granted for the years ended December 31, 2019, 2020 and 2021 was RMB104.4 (US$15.0), RMB262.0 (US$38.8) and RMB423.6 (US$65.5) per share, respectively. It is the Group’s policy to issue new shares upon exercise of share options. The aggregate number of Class Z Ordinary Shares available for future grant under the Global Share Plan and the 2018 Plan was 2,586,218 as of December 31, 2021. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2021 | |
Net Loss Per Share | |
Net Loss Per Share | 18. Net Loss per Share For the years ended December 31, 2019, 2020 and 2021, the Company had potential ordinary shares, including share options granted, and ordinary shares issuable upon the conversion of the April 2026 Notes, 2027 Notes and December 2026 Notes, where applicable. As the Group incurred losses for the years ended December 31, 2019, 2020 and 2021, these potential ordinary shares were anti-dilutive and excluded from the calculation of diluted net loss per share. For the year ended December 31, 2019, the numbers of share options and the number of ordinary shares issuable upon the conversion of the April 2026 Notes, which were anti-dilutive and excluded from the computation of diluted net loss per share, were 9,328,721 shares and 20,202,000 shares, respectively. For the year ended December 31, 2020, the numbers of share options and the number of ordinary shares issuable upon the conversion of the April 2026 Notes and 2027 Notes, which were anti-dilutive and excluded from the computation of diluted net loss per share, were 8,927,697 shares, 20,202,000 shares and 19,641,280 shares, respectively. For the year ended December 31, 2021, the numbers of share options and the number of ordinary shares issuable upon the conversion of the April 2026 Notes, 2027 Notes and December 2026 Notes, which were anti-dilutive and excluded from the computation of diluted net loss per share, were 13,249,083 shares, 18,706,486 shares, The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands, except for share and per share data Numerator: Net loss (1,303,570 ) (3,054,017 ) (6,808,739 ) Accretion to redeemable noncontrolling interests — (4,292 ) — Net loss attributable to noncontrolling interests 14,597 46,605 19,511 Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation (1,288,973 ) (3,011,704 ) (6,789,228 ) Denominator: Weighted average number of ordinary shares outstanding, basic 323,161,680 345,816,023 379,898,121 Weighted average number of ordinary shares outstanding, diluted 323,161,680 345,816,023 379,898,121 Net loss per share, basic (3.99 ) (8.71 ) (17.87 ) Net loss per share, diluted (3.99 ) (8.71 ) (17.87 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies (a) Commitments Purchase obligations In September 2020, the Group signed a contract to purchase the three-year license for live broadcasting the League of Legends World Championship starting from 2020 at an aggregate purchase price of RMB800.0 million (US$125.5 million). The unpaid purchase price was RMB315.0 million (US$49.4 million) as of December 31, 2021. Long-term debt obligations The Group’s long-term debt obligations are to repay the principal amount and cash interests in connection with the April 2026 Notes, 2027 Notes and December 2026 Notes. The expected repayment schedules of the April 2026 Notes,2027 Notes and December 2026 Notes has been disclosed in Note 1 4 (b) Litigation From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of any unresolved matters, individually and in the aggregate, is reasonably possible to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded material liabilities in this regard as of December 31, 2020 and 2021. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions and Balances | |
Related Party Transactions and Balances | 20. Related Party Transactions and Balances The Group entered into the following significant related party transactions for the periods presented: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Purchases of goods and services 87,597 35,131 117,116 Transfer of/ (acquire of) long-term investments 1 539,646 (110,039 ) (40,837 ) Purchase of noncontrolling interests of Chaodian Inc. (“Chaodian”) 2 — 257,288 — Capital contribution/Loans to an entity 3 (“Entity”) — — 2,785,314 Investment income 1 73,884 — 833 The Group had the following significant related party balances as of December 31, 2020 and 2021, respectively: December 31, December 31, RMB in thousands Amount due from related parties Due from an investment fund 1 74,235 48,135 Due from the Entity 3 — 1,709,689 Due from other investees 4 90,497 283,492 Total 164,732 2,041,316 Amount due to related parties 5 — 216,434 1. In June 2019, to focus the Company’s efforts and resources on its core businesses, the Company transferred several equity investments of the Group to an investment fund. The Group contributed a total of RMB220.0 million cash into this fund as a limited partner, which is accounted for as an equity method investment. The cost of the equity investments transferred was RMB465.8 million. The consideration was RMB539.6 million, which was based on the estimated fair value of the investments. The difference between the consideration and cost of the investments was recognized as investment income. In July 2020, the Company acquired certain equity interests of two investments from the investment fund. The consideration was RMB110.0 million. The balances due from an investment fund as of December 31, 2020 and 2021 were consideration receivables and dividend receivables, which are non-trade in nature. 2. In September 2020, the Company acquired the rest equity interests of Chaodian from certain noncontrolling shareholders, which included some related parties of the Company. The consideration was determined by referenced to a third-party valuer’s valuation and the considerations were settled in 2020. 3. The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. The Company made capital contribution of RMB1,084.3 million and provided interest-bearing guaranteed loans of RMB 1,701.0 million to the Entity for its operation. The balance as of December 31, 2021 represents interest-bearing loans and interest expenses related to the Entity, which are non-trade in nature. The annual interest rates of the loans were 3.3%. 4. The balances as of December 31, 2020 and 2021 mainly represent interest-bearing loans and interest expenses of RMB105.6 and RMB279.2 million related to an equity investee, which are non-trade in nature. Interest rates of loans to the investee incurred in 2020 and 2021 were 2.8% and 4.5%, respectively. 5. Amount due to related parties as of December 31, 2021 are primarily considerations related to long-term investments, which are non-trade in nature. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information | |
Segment Information | 21. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Mr. Rui Chen, the Chairman of the Board of Directors and CEO. The Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations which include, but not limited to, customer base, homogeneity of products and technology. The Group’s operating segments are based on such organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. The Group has internal reporting of revenue, cost and expenses by nature as a whole. Hence, the Group has only one operating segment. Substantially the majority of the Group’s revenues are derived from China based on the geographical locations where services are provided to customers. In addition, the Group’s long-lived assets are substantially all located in and derived from China, and the amount of long-lived assets attributable to any individual other country is not material. Therefore, no geographical segments are presented. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | 22. Fair Value Measurement When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The Group measures investments in money market funds, financial products and equity investments in publicly traded companies at fair value. Money market funds and equity investments in publicly traded companies Financial products Accounts receivable, amounts due from/to related parties and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Accounts payable and accrued liabilities and other payables are financial liabilities with carrying values that approximate fair value due to their short-term nature. The Group measures equity investments accounted for using the equity method at fair value on a non-recurring |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Net Assets | |
Restricted Net Assets | 23. Restricted Net Assets Relevant PRC laws and regulations permit the PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries and VIEs can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the generically reserve fund and the statutory surplus fund respectively. The general reserve fund and the statutory surplus fund require that annual appropriations of 10% of net after-tax Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions | |
Acquisitions | 24. Acquisitions Transactions with Chaodian Prior to 2020, the Group held 63.6% of equity interest in Chaodian. In September 2020, the Company acquired the rest of noncontrolling interests of Chaodian, with the total consideration of RMB744.6 million including with a cash consideration of RMB250.5 million and 1,731,100 Class Z ordinary shares. The consideration was determined by referenced to a third-party valuer’s valuation. The difference between the total consideration and the carrying value of the noncontrolling interest of Chaodian was recognized as additional paid-in capital, amounting to RMB193.3 million. Following the completion of this transaction, the Company held 100% of equity interest in Chaodian. Transactions with one animation content production company (“Anime Business”) Prior to 2021, the Group held 8.1% equity share of Anime Business through several investments with preferred rights, which was accounted for as long-term investments using alternative measure method. In January 2021, the Group acquired remaining equity with the total consideration of RMB612.3 million, including the cash consideration of RMB369.1 million and 400,000 restricted Class Z ordinary shares. Upon the completion of this transaction in January 2021, the Group held 100% of equity interests in the Anime Business, which became a consolidated subsidiary of the Group. The consideration of acquisition of Anime Business was allocated based on their fair value of the assets acquired and the liabilities assumed as follows: Amount Amortization Period RMB in thousands Net assets acquired 189,763 Intangible assets —Brand 85,000 8 years —Vendor relationship 75,000 10 years —Non-compete 54,000 6 years Goodwill 283,402 Total 687,165 Total purchase price comprised of: Amount RMB in thousands Cash consideration 369,124 Share consideration 243,203 Fair value of previously held equity interests 74,838 Total 687,165 Goodwill arising from this acquisition was attributable to the synergies between ability of animation content production and the Group’s strategy to expand its content library. Transactions with one Comics distribution company (“Comics Business”) In November 2021, the Company signed an agreement to acquire all of the equity interests in Comics Business with a total cash consideration of RMB600.0 million. Upon the completion of this transaction, the Group held 100% of equity interests in the Comics Business, which became a consolidated subsidiary of the Group. The consideration of acquisition of Comics Business was allocated based on their fair value of the assets acquired and the liabilities assumed as follows: Amount Amortization Period RMB in thousands Net assets acquired 48,764 Intangible assets —Brand 23,000 10 years —User base 11,000 3 years —Copyrights 269,000 8 years —Technology 4,000 3 years —Non-compete clause 5,000 2 years Deferred tax liabilities (42,133 ) Goodwill 281,369 Total 600,000 Total purchase price comprised of: Amount Cash consideration 600,000 Goodwill arising from this acquisition was attributable to the synergies between ability of comics distribution and the Group’s strategy to expand its content library. Other acquisitions For the years ended December 31, 2020 and 2021, the Group completed several other acquisitions, to complement its existing businesses and achieve synergies. The acquired entities individually and in aggregate were insignificant. The Group’s other acquisitions are summarized in the following table: For the Year Ended December 31, 2020 2021 Amortization Amount RMB in thousands Net assets acquired 18,495 28,320 Intangible assets —Brand — 66,000 5 —User base 700 1,500 5 —Copyrights 49,000 2,100 3 to 10 —Technology — 3,500 5 —Vendor relationship 86,000 — 10 —On-going 69,000 64,000 3 to 4.5 —Customer relationship — 83,000 5 years —Non-compete clause — 28,000 6 years Noncontrolling interests (44,064 ) — Deferred tax liabilities (49,140 ) — Goodwill 283,760 477,746 Total 413,751 754,166 Total purchase price comprised of: Amount RMB in thousands Cash consideration 295,323 244,949 Share consideration 118,428 391,244 Fair value of previously held equity interests — 117,973 Total 413,751 754,166 Pro forma results of operations for all the acquisitions have not been presented because they were not material to the consolidated statements of operations and comprehensive loss for the years ended December 31, 2020 and 2021, either individually or in aggregate. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 25. Subsequent Events In February 2022, the Company completed an acquisition of a game development company with a total consideration of approximately RMB800.0 million (approximately US$125.5 million). In March 2022, the board of directors of the Company authorized a share repurchase program under which the Company may repurchase up to US$500 million of its ADSs for the next 24 months. As of the date of this annual report, approximately million ADSs had been purchased under this program for a total cost of US$ 30.0 million . In March 2022, the board of directors of the Company authorized the Company to repurchase a portion of December 2026 Notes through privately negotiated transactions. As of the date of this annual report, the Company repurchased an aggregate principal amount of US$ 204.0 million of December 2026 Notes with a total cash consideration of US$ million . Since December 2021, these has been a recurrence of COVID-19 outbreaks in certain provinces of China. The extent to which COVID-19 impacts the business and financial results of the Company will depend on future developments, which are uncertain and cannot be predicted. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of presentation | a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company’s subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company’s subsidiary is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. |
Use of estimates | c) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of the average playing period for paying players, and assessment for the impairment of long-term investments accounted for using the measurement alternative. |
Functional currency and foreign currency translation | d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The Company and several of its overseas subsidiaries use US$ or their respective local currencies as their functional currency. The functional currency of the Group’s PRC entities is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive income/(loss) on the consolidated statements of operations and comprehensive loss. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in exchange gains/(losses) on the consolidated statements of operations and comprehensive loss. |
Convenience Translation | e) Convenience Translation Translations of balances on the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 3 1 |
Fair value measurements | f) Fair value measurements Financial instruments Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. 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: a. Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. b. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. c. Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash and cash equivalents, time deposits, accounts receivable, amounts due from/to related parties, short-term investments, and accounts payable , short-term loans, accrual liabilities and other payables |
Cash and cash equivalents and time deposits | g) Cash and cash equivalents and time deposits Cash and cash equivalents mainly represent cash on hand, demand deposits placed with large reputable banks in the United States of America and China, and highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase with terms of three months or less. As of December 31, 2020 and 2021, there were cash on hand and demand deposits with terms of and less than three months denominated in U.S. dollars amounting to approximately US$582.2 million and US$999.9 million, respectively (equivalent to approximately RMB3,798.5 million and RMB6,375.1 million, respectively). As of December 31, 2020 and 2021, the Group had cash held in accounts managed by online payment platforms such as Alipay and Paypal in connection with the collection of online service fees for a total amount of RMB42.0 million and RMB50.7 million, respectively, which have been classified as cash and cash equivalents on the consolidated balance sheets. As of December 31, 2020 and 2021, the Group had approximately RMB2,144.5 million and RMB1,554.5 million cash and cash equivalents held by its PRC subsidiaries and VIEs, representing 46% and 21% of total cash and cash equivalents of the Group, respectively. Time deposits represent deposits placed with banks with original maturities more than three months but less than one year. As of December 31, 2020 and 2021, there were time deposits denominated in U.S. dollars amounting to approximately US$721.1 million and US$1,197.1 million, respectively (equivalent to approximately RMB4,705.1 million and RMB7,632.3 million, respectively). The Group had no other lien arrangements for the years ended December 31, 2019, 2020 and 2021. As of December 31, 2020 and 2021, the Group had no restricted cash balance. |
Receivables, net | h) Receivables, net Prior to January 1, 2020, the Group monitors the collection of its receivables and records allowance for specifically identified non-recoverable Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments The Group’s accounts receivable and other receivables recorded in prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from advertising customers, and receivables from distribution channels. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables and other receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The Group recorded a provision for current expected credit loss. The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Beginning balance prior to ASC 326 — 17,696 — Impact of adoption to ASC 326 — 17,900 — Beginning balance 14,420 35,596 121,003 Provisions 9,396 99,165 189,165 Write-offs (6,120 ) (13,758 ) (17,695 ) Ending balance 17,696 121,003 292,473 |
Inventories, net | i) Inventories, net Inventories, mainly represent products for the Group’s e-commerce |
Property and equipment, net | j) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three years. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized on the consolidated statements of operations and comprehensive loss. |
Intangible assets, net | k) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Purchased intangible assets are initially recognized and measured at fair value. Major identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Licensed copyrights of content shorter of the licensed period or projected useful life of the content, mainly vary from 1 to 8 years License rights of mobile games shorter of the licensed period or projected useful life of mobile games, mainly vary from 1 to 3 years Intellectual property and others 1 to If expectations of the usefulness of the content are revised downward, the unamortized cost is written down to the fair value, which establishes a new cost basis. |
Goodwill | l) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event or circumstances change occurs that indicate the asset might be impaired. Under ASC 350-20-35, The Group applies the quantitative impairment test, which consists of a two-step two-step On January 1, 2020, the Group adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The estimated fair value of reporting unit is determined using either an income approach or a market approach, when appropriate. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. The Group as a whole is determined to be one reporting unit for goodwill impairment testing. The Group applied the quantitative assessment and performed the goodwill impairment test by quantitatively comparing the fair values of the reporting unit to its carrying amounts. The Group determines the fair value of the reporting unit based on its quoted stock price, and no impairment charge was recognized for any of the periods presented. |
Impairment of long-lived assets other than goodwill | m) Impairment of long-lived assets other than goodwill Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Research and development expenses | n) Research and development expenses Research and development expenses mainly consist of payroll-related expenses incurred for the innovation of video function, development and enhancement to the Group’s websites and platforms of applications and development of online games. For internal use software, the Group expenses all costs incurred for the preliminary project stage and post implementation-operation stage of development, and costs associated with repair or maintenance of the existing platforms. Costs incurred in the application development stage are capitalized and amortized over the estimated useful life. Since the amount of the Group’s research and development expenses qualifying for capitalization has been immaterial, as a result, all development costs incurred for development of internal used software have been expensed as incurred. For external use software, costs incurred for development of external use software have not been capitalized since the inception of the Group, because the period after the date technical feasibility is reached and the time when the software is marketed is short historically, and the amount of costs qualifying for capitalization has been immaterial. |
Leases | q) Leases On January 1, 2019, the Group adopted ASU No. 2016-02, “ Leases (Topic 842) The Group elected to apply practical expedients permitted under the transition method that allow the Group not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease Right-of-use . The Group leases office space and staff quarters under non-cancelable 2026 December 31, 2021 RMB in thousands 2022 207,531 2023 148,596 2024 87,763 2025 49,981 2026 and thereafter 3,735 Total future lease payments 497,606 Impact of discounting remaining lease payments (41,635 ) Total lease liabilities 455,971 Operating lease cost for the year ended December 31, 2019, 2020 and 2021 was RMB79.4 million, RMB107.2 million and RMB177.4 million, respectively, which excluded cost of short-term contracts. Short-term lease cost for the year ended December 31, 2019, 2020 and 2021 was immaterial. Supplemental cash flow information related to operating leases was as follows: For the Year Ended December 31, 2020 2021 RMB in thousands Cash payments for operating leases 107,772 161,997 Right-of-use 260,867 152,481 |
Share-based compensation | r) Share-based compensation Share based compensation expenses arise from share-based awards, including share options for the purchase of the Company’s ordinary shares. The Group accounts for share-based awards granted to employees in accordance with ASC 718 Compensation - Stock Compensation non-employees For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rates and expected dividends. For share options granted with service conditions only, share-based compensation expenses are recorded net of estimated forfeitures using straight-line method during the requisite service period, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. For share options granted with service condition and the occurrence of an US IPO as performance condition, share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the requisite service period. |
Employee benefits | s) Employee benefits PRC Contribution Plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. |
Investments | t) Investments Short-term investments Short-term investments primarily include money market funds, financial products with variable interest rates referenced to performance of underlying assets issued by commercial banks or other financial institutions and publicly traded companies with the intention to be sold within twelve months. In accordance with ASC 825, Financial Instruments /(loss), net (including impairments)”. For the investments in publicly traded companies, the Group carries the investments at fair value at the end of each reporting period. Changes in the fair value of these investments are reflected on the consolidated statements of operations and comprehensive loss as “Investment income/(loss), net (including impairments)”. Long-term investments, net The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the equity method and other investments accounted for at fair value. Equity investments accounted for using the measurement alternative For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group records them at cost, less impairment, and plus or minus subsequent adjustments for observable price changes (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Management regularly evaluates the impairment of these investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized equals to the excess of the investment cost over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. Equity investments accounted for using the equity method The Group applies the equity method of accounting to account for equity investments and limited partnership in a private equity fund, according to ASC 323 Investment—Equity Method and Joint Ventures Investments accounted for at fair value In accordance with ASC 825, Financial Instruments |
Taxation | u) Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the assets and liabilities method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of operations and comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not Uncertain tax positions In order to assess uncertain tax positions, the Group applies a more-likely-than-not two-step two-step more-likely-than-not |
Revenue recognition | v) Revenue recognition Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. The Group’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Mobile game services Exclusively distributed mobile games For the years ended December 31, 2019, 2020 and 2021, the Group primarily generates revenues from the sale of in-game In accordance with ASC 606, the Group evaluates the contracts with its customers and determines that the Group has a single performance obligation which is to make the game and the ongoing game related services available to the paying players. The transaction price, which is the amount paid for in-game in-game point-in-time in-game The Group has estimated the average playing period of the paying players for each game, usually between two to nine months. The Group considers the average period that players typically play the games and other game player behavior patterns, as well as various other factors to arrive at the best estimates for the estimated playing period of the paying players. To compute the estimated average playing period for paying players, the Group considers the initial purchase date as the starting point of a paying player’s lifespan. The Group tracks populations of paying players who made their initial purchases during the interval period (the “Cohort”) and tracks each Cohort to understand the subsequent churn rate of the paying players of each Cohort, i.e. the number of paying players from each Cohort who left subsequent to their initial purchases. To determine the ending point of a paying player’s lifespan beyond the date for which observable data are available, the Group extrapolates the actual observed churn rate to arrive at an estimated weighted average playing lifespan for paying players of the selected games. If a new game is launched and only a limited period of paying player data is available, then the Group considers other qualitative factors, such as the playing patterns for paying players for other games with similar characteristics with the new game, including paying player type and purchasing frequency. While the Group believes its estimates to be reasonable based on available game player information, the Group may revise such estimates based on new information indicating a change in the game player behavior patterns and any adjustments are applied prospectively. In accordance with ASC 606-10-55-39, in-game in-game Proceeds earned from selling in-game Jointly operated mobile game distribution services The Group is also offering distribution services for mobile games developed by the third-party game developers. In accordance with ASC 606, the Group evaluates the contracts with the third-party game developers and identifies the performance obligations as distributing games and providing payment solution and market promotion service to the game developers. Accordingly, the Group earns service revenue by distributing them to the game players. In accordance with ASC 606-10-55-39, pre-determined Valued added services (“VAS”) The Group offers premium membership subscription , live broadcasting, comic and other paid contents to the customers. The Group offers premium membership services which provide subscribing members access to streaming of premium content in exchange for a non-refundable The Group operates and maintains live broadcasting channel whereby users can enjoy live performances provided by the hosts and interact with the hosts. Most of the hosts host the performance on their own. The Group creates and sells virtual items to users so that the users present them simultaneously to hosts to show their support. The virtual items sold by the Group comprise of either (i) consumable items or (ii) time-based items, such as privilege titles etc. Revenues derived from the sale of virtual items are recorded on a gross basis as the Group acts as the principal to fulfill all obligations related to the sale of virtual items in accordance with ASC 606-10-55-39. point-in-time Under the arrangements with the hosts, the Group shares with them a portion of the revenues derived from the sales of virtual items. The portion paid to hosts is recognized as “Cost of revenues” on the consolidated statements of operations and comprehensive loss. Advertising services The Group provides various advertising formats, mainly include but not limited to advertisements appearing on the app opening page, banner text-links, logos, buttons and rich media, performance-based advertising and native advertisements which are customized according to advertisers’ needs. The Group determines each format of advertisements which is a distinct performance obligation. Consideration is allocated to each performance obligation based on its standalone selling price. The Group recognizes revenue on a pro-rata Sales incentives to customers The Group provides various sales incentives to its customers, including cash incentives in the form of commissions to certain third-party advertising agencies and noncash incentives such as discounts and advertising services provided free of charge in certain bundled arrangements, which are negotiated on a contract by contract basis with customers. The Group accounts for these incentives granted to customers as variable consideration in accordance with ASC 606. The amount of variable consideration is measured based on the most likely amount of incentive to be provided to customers. E-commerce E-commerce e-commerce E-commerce 606-10-55-39, 606-10-32-25. Net revenues presented on the consolidated statements of operations and comprehensive loss are net of sales discount and sales tax. Other Estimates and Judgments The Group estimates revenue of mobile game, VAS from the third-party payment processors in the current period when reasonable estimates of these amounts can be made. The processors provide reliable interim preliminary reporting within a reasonable time frame following the end of each month and the Group maintains records of sales data, both of which allow the Group to make reasonable estimates of revenue and therefore to recognize revenue during the reporting period. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Group believes are reasonable, but actual results may differ from the Group’s estimates. When the Group receives the final reports, to the extent not received within a reasonable time frame following the end of each month, the Group records any differences between estimated revenue and actual revenue in the reporting period when the Group determines the actual amounts. The revenue on the final revenue report have not differed significantly from the reported revenue for the periods presented. Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to consideration. Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from game players in mobile games, from customers in advertising services, live broadcasting services and other VAS, and e-commerce Practical expedients The Group has used the following practical expedients as allowed under ASC 606: The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed, as substantially all of the contracts have an original expected duration of one year or less. The Group expenses the costs to obtain a contract as incurred when the amortization period is one year or less. The following table presents the Group’s net revenues disaggregated by revenue sources: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Mobile games 3,597,809 4,803,382 5,090,926 Value-added services 1,641,043 3,845,663 6,934,886 Advertising 817,016 1,842,772 4,523,421 E-commerce 722,054 1,507,159 2,834,451 Total net revenues 6,777,922 11,998,976 19,383,684 |
Cost of revenues | w) Cost of revenues Costs of revenues consist primarily of revenue sharing costs to mobile games developers and distribution channels and payment channels, revenue sharing with the hosts and content creators, staff costs, content costs, server and bandwidth service costs, depreciation expenses and other direct costs of providing these services as well as cost of merchandise sold. These costs are charged to the consolidated statements of operations and comprehensive loss as incurred. |
Related parties | x) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Net loss per share | y) Net loss per share Loss per share is computed in accordance with ASC 260, Earnings per Share two-class two-class Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. Potential ordinary shares include ordinary shares issuable upon the exercise of outstanding share options using the treasury stock method and ordinary shares issuable upon the conversion of the April 2026 Notes, 2027 Notes and December 2026 Notes using the if-converted |
Statutory reserves | z) Statutory reserves In accordance with China’s Company Laws, the Company’s VIEs in PRC must make appropriations from their after-tax non-distributable after-tax Pursuant to the laws applicable to China’s FIEs, the Company’s subsidiaries that are FIEs in China have to make appropriations from their after-tax after-tax The following table presents the Group’s appropriations to general reserve funds and statutory surplus funds for the years ended December 31, 2019, 2020 and 2021: For the Year Ended 2019 2020 2021 RMB in thousands Appropriations to general reserve funds and statutory surplus funds 5,797 4,421 6,737 |
Noncontrolling interests | aa) Noncontrolling interests For the Company’s majority-owned subsidiaries and consolidated VIEs, noncontrolling interests are recognized to reflect the portion of the equity which is not attributable, directly or indirectly, to the Company as the controlling shareholder. Noncontrolling interests acquired through a business combination are recognized at fair value at the acquisition date, which is estimated with reference to the purchase price per share as of the acquisition date. The noncontrolling interests will continue to be attributed with its share of losses even if that attribution results in a deficit noncontrolling interest balance. |
Comprehensive loss | bb) Comprehensive loss Comprehensive loss is defined to include all changes in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Accumulated other comprehensive income/(loss), as presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments. |
Segment reporting | cc) Segment reporting Based on the criteria established by ASC 280, Segment Reporting |
Business combinations | dd) Business combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations In a business combination achieved in stages, the Group re-measures re-measurement For the Company’s majority-owned subsidiaries and consolidated VIEs, noncontrolling interests are recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. If a business combination is under common control, the acquired assets and liabilities are recognized at their historical book value. The consolidated financial statements include the results of the acquired entities from the earliest date presented or, if more recent, from the date when the entities first came under common control, regardless of the date of the combination. Consolidated financial statements for prior years would also be retrospectively adjusted for periods during which the entities were under common control. |
Recently issued accounting pronouncements | ee) Recently issued accounting pronouncements On January 1, 2021, the Company early adopted ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40). , Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08) Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08) , |
Sales and marketing expenses | |
Expenses | o) Sales and marketing expenses Sales and marketing expenses consist primarily of marketing and promotional expenses, salaries and other compensation-related expenses to the Group’s sales and marketing personnel. Marketing and promotional expenses consist primarily of costs for the promotion of corporate image and product marketing. The Group expenses all marketing and promotion costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2019, 2020 and 2021, the marketing and promotional expenses were RMB934.7 million, RMB3,006.0 million and RMB5,102.9 million, respectively. |
General and administrative expenses | |
Expenses | p) General and administrative expenses General and administrative expenses consist primarily of salaries and other compensation-related expenses to the Group’s general and administrative personnel, professional fees, rental expenses and allowance for doubtful accounts. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Operations and Reorganization | |
Schedule of Company's major subsidiaries and VIEs and subsidiaries of the VIEs | Major Subsidiaries Place and Year of Incorporation Percentage of Direct or Economic Ownership Principal Activities Bilibili HK Limited Hong Kong, 2014 100 Investment holding Hode HK Limited Hong Kong, 2014 100 Investment holding Chaodian HK Limited Hong Kong, 2019 100 Investment holding Bilibili Co., Ltd. Japan, 2014 100 Business development Hode Shanghai Limited (“Hode Shanghai”) PRC, 2014 100 Technology development Shanghai Bilibili Technology Co., Ltd. PRC, 2016 100 Technology development Chaodian (Shanghai) Technology Co., Ltd. PRC, 2019 100 E-commerce and advertising Major VIEs and VIEs’ subsidiaries Place and Year of Incorporation Acquisition Percentage of Direct or Indirect Economic Ownership Principal Activities Shanghai Hode Information Technology Co., Ltd. (“Hode Information Technology”) PRC, 2013 100 Mobile game operation Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”) PRC, 2014 100 Video distribution and game distribution Sharejoy Network Technology Co., Ltd. (“Sharejoy Network”) PRC, 2014 100 Game distribution Shanghai Hehehe Culture Communication Co., Ltd. (“Shanghai Hehehe”) PRC, 2014 100 Comics distribution Shanghai Anime Tamashi Cultural Media Co., Ltd. (“Shanghai Anime Tamashi”) PRC, 2015 100 E-commerce platform |
Schedule of combined financial information of the Group's VIEs included in the accompanying consolidated financial statements of the Group | The following combined financial information of the Group’s VIEs as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 included in the accompanying consolidated financial statements of the Group was as follows: December 31, December 31, RMB in thousands Cash and cash equivalents 349,190 377,114 Time deposits 22,161 6,997 Accounts receivable, net 343,099 524,311 Amounts due from Group companies 173,596 391,951 Amount due from related parties 59,117 101,983 Prepayments and other current assets 1,383,648 1,806,185 Short-term investments 1,175,309 927,124 Long-term investments, net 1,223,943 1,745,466 Other non-current assets 2,183,411 4,926,989 Total assets 6,913,474 10,808,120 Accounts payable 2,332,372 3,164,301 Salary and welfare payables 288,686 343,008 Taxes payable 106,492 128,817 Short-term loans 100,000 400,000 Deferred revenue 1,769,992 2,192,460 Accrued liabilities and other payables 449,370 1,184,523 Amounts due to the Group companies 3,752,973 7,214,146 Amounts due to related parties — 117,901 Other long-term payable 19,640 222,719 Total liabilities 8,819,525 14,967,875 Total Bilibili Inc’s shareholders’ deficit (1,941,724 ) (4,170,459 ) Noncontrolling interests 35,673 10,704 Total shareholders’ deficit (1,906,051 ) (4,159,755 ) Total liabilities and shareholders’ deficit 6,913,474 10,808,120 For the Year Ended December 31, 2019 2020 2021 RMB in thousands Third-party revenues 6,056,332 9,651,207 12,867,536 Inter-company revenues 531,830 667,765 1,574,896 Total revenues 6,588,162 10,318,972 14,442,432 Third-party costs and expenses (5,795,826 ) (9,931,047 ) (16,283,295 ) Inter-company consulting and services costs and expenses (1,266,411 ) (1,021,596 ) (593,272 ) Other inter-company costs and expenses (75,552 ) (201,587 ) (271,096 ) Total costs and expenses (7,137,789 ) (11,154,230 ) (17,147,663 ) Gain/(Loss) from non-operations 122,116 8,368 (163,146 ) Loss before income tax expenses (427,511 ) (826,890 ) (2,868,377 ) Income tax expenses (20,603 ) (27,080 ) (38,997 ) Net loss (448,114 ) (853,970 ) (2,907,374 ) Net loss attributable to noncontrolling interests 1,936 8,501 10,367 Net loss attributable to Bilibili Inc.’s shareholders (446,178 ) (845,469 ) (2,897,007 ) For the Year Ended December 31, 2019 2020 2021 RMB in thousands Consulting and services charges to Group companies (1,579,212 ) (1,074,899 ) (637,787 ) Other operating cashflow from Group companies 1,027,392 586,017 1,683,907 Operating cashflow from/(to) third-parties 823,119 1,965,376 (1,729,079 ) Net cash provided by/(used in) operating activities 271,299 1,476,494 (682,959 ) Purchase of short-term investments (6,535,669 ) (13,973,904 ) (12,610,305 ) Maturities of short-term investments 6,113,861 13,498,485 12,954,425 Placements of time deposits (7,584 ) (25,515 ) (39,318 ) Maturities of time deposits 7,584 7,896 54,319 Other investing activities (1,097,123 ) (1,928,125 ) (3,265,756 ) Net cash used in investing activities (1,518,931 ) (2,421,163 ) (2,906,635 ) Investments and loans from Group companies 1,300,740 990,287 3,307,226 Other financing activities — 100,000 300,000 Net cash provided by financing activities 1,300,740 1,090,287 3,607,226 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Schedule of movements of the allowance for doubtful accounts | The following table sets out movements of the allowance for doubtful accounts for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Beginning balance prior to ASC 326 — 17,696 — Impact of adoption to ASC 326 — 17,900 — Beginning balance 14,420 35,596 121,003 Provisions 9,396 99,165 189,165 Write-offs (6,120 ) (13,758 ) (17,695 ) Ending balance 17,696 121,003 292,473 |
Schedule of estimated useful lives of the intangible assets | Major identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Licensed copyrights of content shorter of the licensed period or projected useful life of the content, mainly vary from 1 to 8 years License rights of mobile games shorter of the licensed period or projected useful life of mobile games, mainly vary from 1 to 3 years Intellectual property and others 1 to |
Schedule of future lease payments under operating leases | Future lease payments under operating leases as of December 31, 2021 were as follows: December 31, 2021 RMB in thousands 2022 207,531 2023 148,596 2024 87,763 2025 49,981 2026 and thereafter 3,735 Total future lease payments 497,606 Impact of discounting remaining lease payments (41,635 ) Total lease liabilities 455,971 |
Schedule of Lease Cost | For the Year Ended December 31, 2020 2021 RMB in thousands Cash payments for operating leases 107,772 161,997 Right-of-use 260,867 152,481 |
Schedule of net revenues disaggregated by revenue sources | For the Year Ended December 31, 2019 2020 2021 RMB in thousands Mobile games 3,597,809 4,803,382 5,090,926 Value-added services 1,641,043 3,845,663 6,934,886 Advertising 817,016 1,842,772 4,523,421 E-commerce 722,054 1,507,159 2,834,451 Total net revenues 6,777,922 11,998,976 19,383,684 |
Schedule of appropriations to general reserve funds and statutory surplus funds | For the Year Ended 2019 2020 2021 RMB in thousands Appropriations to general reserve funds and statutory surplus funds 5,797 4,421 6,737 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Telecommunications service provider | |
Concentrations and Risks | |
Schedule of concentrations and risks | For the Year Ended 2019 2020 2021 RMB in thousands Total number of telecommunications service providers 107 116 126 Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure 2 3 3 Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers 45 % 55 % 55 % |
Credit risk | |
Concentrations and Risks | |
Schedule of concentrations and risks | RMB in thousands December 31, December 31, Distribution channel A 146,907 171,680 |
Mobile games | |
Concentrations and Risks | |
Schedule of concentrations and risks | For the Year Ended December 31, 2019 2020 2021 Mobile game 1 31 % 11 % N/A |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and Other Current Assets | |
Summary of prepayments and other current assets | December 31, December 31, RMB in thousands Prepayments for revenue sharing cost* 782,518 1,117,431 Prepayments for sales tax 202,025 523,282 Inventories, net 160,006 455,767 Prepayments of marketing and other operational expenses 64,068 181,764 Deposits 51,661 106,555 Prepayments to inventory suppliers 19,970 94,746 Prepayments for content cost 195,175 73,496 Loans to investees or ongoing investments 187,672 68,681 Prepayments /receivables relating to jointly invested content 28,664 36,246 Interest income receivable 6,396 10,927 Others 67,632 138,153 Total 1,765,787 2,807,048 * App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheets as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going end-users. |
Short-term Investments (Tables)
Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Investments [Abstract] | |
Summary of short-term investments | December 31, 2020 December 31, 2021 RMB in thousands Financial products 2,866,643 13,583,580 Investments in publicly traded companies 434,609 1,426,946 Money market funds 55,937 50,196 Total 3,357,189 15,060,722 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and equipment, net | December 31, 2020 December 31, 2021 RMB in thousands Leasehold improvements 118,581 221,280 Servers and computers 1,286,310 2,277,947 Others 30,750 59,871 Total 1,435,641 2,559,098 Less: accumulated depreciation (673,700 ) (1,208,842 ) Net book value 761,941 1,350,256 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of intangible assets, net | As of December 31, 2020 Gross Accumulated Net RMB in thousands Licensed copyrights of content 4,556,683 (2,891,742 ) 1,664,941 License rights of mobile games 299,786 (119,493 ) 180,293 Intellectual property and others 753,282 (241,557 ) 511,725 Total 5,609,751 (3,252,792 ) 2,356,959 As of December 31, 2021 Gross Accumulated Net RMB in thousands Licensed copyrights of content 5,567,213 (3,245,622 ) 2,321,591 License rights of mobile games 455,687 (229,559 ) 226,128 Intellectual property and others 1,674,232 (386,351 ) 1,287,881 Total 7,697,132 (3,861,532 ) 3,835,600 |
Schedule of intangible assets amortization expense for future years | Intangible assets amortization expense RMB in thousands 2022 1,300,530 2023 918,258 2024 589,221 2025 337,846 2026 264,088 Thereafter 425,657 Total expected amortization expense 3,835,600 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination, Goodwill [Abstract] | |
Schedule of Goodwill | December 31, December 31, RMB in thousands Beginning balance 1,012,026 1,295,786 Additions (Note 24) 283,760 1,042,517 Ending balance 1,295,786 2,338,303 |
Long-term Investments, Net (Tab
Long-term Investments, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |
Summary of equity method investments | December 31, December 31, RMB in thousands Equity investments accounted for using the measurement alternative 1,791,393 3,344,465 Equity investments accounted for using the equity method 188,199 1,235,289 Investments accounted for at fair value 253,346 922,770 Total 2,232,938 5,502,524 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxation | |
Schedule of composition of income tax expenses | The following table presents the composition of income tax expenses for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Current income tax expenses 29,452 48,081 102,715 Withholding income tax expenses 16,894 18,754 14,066 Deferred tax benefits (10,479 ) (13,466 ) (21,492 ) Total 35,867 53,369 95,289 |
Schedule of reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | The following table presents a reconciliation of the differences between the statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 % % % Statutory income tax rate 25.00 25.00 25.00 Permanent differences (0.83 ) 0.60 (1.19 ) Tax rate difference from statutory rate in other jurisdictions* (0.39 ) (3.90 ) (1.43 ) Tax effect of preferential tax treatments (8.48 ) (8.29 ) (7.94 ) Withholding tax (1.33 ) (0.63 ) (0.21 ) Change in valuation allowance (16.80 ) (14.56 ) (15.65 ) Effective income tax rate (2.83 ) (1.78 ) (1.42 ) * It is primarily due to the tax effect of the Company as a tax-exempt |
Schedule of net operating tax loss carry forwards | As of December 31, 2021, certain entities of the Group had net operating tax loss carry forwards as follows: RMB in Loss expiring in 2022 42,591 Loss expiring in 2023 100,218 Loss expiring in 2024 200,747 Loss expiring in 2025 286,268 Loss expiring in 2026 and thereafter 9,155,679 Total 9,785,503 |
Schedule of tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities | The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities as of December 31, 2020 and 2021: December 31, December 31, RMB in thousands Deferred tax assets: Deferred revenue 163,620 143,688 Accrued expenses and other payables 128,886 150,092 Advertising expenses in excess of deduction limit 65,674 130,720 Net operating tax loss carry forwards 621,035 1,662,884 Others 19,036 71,048 Total deferred tax assets 998,251 2,158,432 Less: valuation allowance (977,333 ) (2,122,077 ) Net deferred tax assets 20,918 36,355 Deferred tax liabilities : Acquired intangible assets (Note 24) (46,112 ) (82,191 ) Total deferred tax liabilities (46,112 ) (82,191 ) |
Schedule of movement of the aggregate valuation allowances for deferred tax assets | The following table sets forth the movement of the aggregate valuation allowances for deferred tax assets for the periods presented: Balance at Re-measurement due to Addition Expiration of loss carry Balance at RMB in thousands 2019 (293,955 ) — (248,896 ) 5,492 (537,359 ) 2020 (537,359 ) 105 (484,445 ) 44,366 (977,333 ) 2021 (977,333 ) — (1,154,342 ) 9,598 (2,122,077 ) |
Taxes Payable (Tables)
Taxes Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Payable | |
Summary of taxes payable | December 31, 2020 December 31, 2021 RMB in thousands EIT payable 31,181 69,773 VAT payable 50,881 52,614 Withholding individual income taxes for employees 20,465 44,968 Withholding income tax payable 18,300 29,242 Others 6,365 7,173 Total 127,192 203,770 |
Short-Term Loan (Tables)
Short-Term Loan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Short Term Loan | Short-term loans consist of the following: Interest Rate range Maturity Date Balance at December 31, 2020 RMB in thousands Unsecured bank loans 3.70% within 12 months 100,000 Interest Rate range Maturity Date Balance at December RMB in thousands Unsecured bank loans 3.60%~3.70% within 12 months 943,658 Unsecured borrowing 3.95% within 12 months 288,448 Total 1,232,106 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Payables | |
Summary of accrued liabilities and other payables | The following is a summary of accrued liabilities and other payables as of December 31, 2020 and 2021: December 31, December 31, RMB in thousands Accrued marketing expenses 783,455 1,321,776 Consideration payable for acquisitions and investments 125,363 526,453 Leasing liabilities - current portion 150,402 206,758 Payables to producers and licensors 63,307 139,951 Professional fees 38,573 64,510 Interest payable 14,041 26,469 Advances from/payables to third parties 5,869 14,386 Other staff related cost 13,872 5,325 Others 42,794 111,327 Total 1,237,676 2,416,955 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instruments [Abstract] | |
Summary of the Company's unsecured senior notes | The following table provides a summary of the Company’s unsecured senior notes as of December 31, 2020 and December 31, 2021: December 31, 2020 December 31, 2021 Effective interest rate Amounts Amounts RMB in thousands April 2026 Notes 3,204,309 2,697,698 1.74 % 2027 Notes 5,136,613 5,031,312 1.52 % December 2026 Notes — 10,055,082 0.80 % Carrying value 8,340,922 17,784,092 Unamortized discount and debt issuance costs 141,448 255,033 Total principal amounts of unsecured senior notes 8,482,370 18,039,125 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits | |
Schedule of employee welfare benefits expenses | For the Year Ended December 31, 2019 2020 2021 RMB in thousands Contributions to medical and pension schemes 215,553 195,655 695,310 Other employee benefits 24,180 40,216 65,990 Total 239,733 235,871 761,300 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of valuation assumptions | For the Year Ended December 31, 2019 2020 2021 Expected volatility 49.6%-52.1% 50.1%-55.0% 53.0%-53.5% Weighted average volatility 50.8% 51.9% 53.2% Expected dividends — — — Risk-free rate 1.4%-2.4% 0.4%-0.7% 0.9%-1.4% Contractual term (in years) 6 6-7 6-7 |
Schedule of share options activities | Employees Senior Consultants Total Weighted Weighted Aggregate (In thousands) (In thousands) (In thousands) (In thousands) US$ (In years) (RMB in Outstanding at January 1, 2019 7,641 4,235 438 12,314 0.0001 4.46 1,233,028 Granted 2,464 730 — 3,194 0.0001 Exercised (1,352 ) (710 ) (193 ) (2,255 ) 0.0001 Forfeited (479 ) (600 ) — (1,079 ) 0.0001 Outstanding 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Outstanding at January 1, 2020 8,274 3,655 245 12,174 0.0001 4.13 1,581,408 Granted 6,966 8,700 50 15,716 2.9007 Exercised (2,784 ) (1,643 ) (65 ) (4,492 ) 0.0001 Forfeited (1,101 ) — — (1,101 ) 0.4234 Outstanding at December 31, 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Outstanding 11,355 10,712 230 22,297 2.0236 5.41 12,177,047 Granted 3,927 — 21 3,948 0.0001 Exercised (2,094 ) (1,101 ) (68 ) (3,263 ) 0.0001 Forfeited (472 ) — — (472 ) 0.0001 Outstanding at December 31, 12,716 9,611 183 22,510 2.0010 5.01 6,372,503 Exercisable at December 31, 952 950 150 2,052 0.0001 3.99 606,974 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Loss Per Share | |
Schedule of computation of basic and diluted net loss per share | The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 2020 2021 RMB in thousands, except for share and per share data Numerator: Net loss (1,303,570 ) (3,054,017 ) (6,808,739 ) Accretion to redeemable noncontrolling interests — (4,292 ) — Net loss attributable to noncontrolling interests 14,597 46,605 19,511 Net loss attributable to Bilibili Inc.’s shareholders for basic/dilutive net loss per share calculation (1,288,973 ) (3,011,704 ) (6,789,228 ) Denominator: Weighted average number of ordinary shares outstanding, basic 323,161,680 345,816,023 379,898,121 Weighted average number of ordinary shares outstanding, diluted 323,161,680 345,816,023 379,898,121 Net loss per share, basic (3.99 ) (8.71 ) (17.87 ) Net loss per share, diluted (3.99 ) (8.71 ) (17.87 ) |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions and Balances | |
Schedule of significant related party transactions | The Group entered into the following significant related party transactions for the periods presented: For the Year Ended December 31, 2019 2020 2021 RMB in thousands Purchases of goods and services 87,597 35,131 117,116 Transfer of/ (acquire of) long-term investments 1 539,646 (110,039 ) (40,837 ) Purchase of noncontrolling interests of Chaodian Inc. (“Chaodian”) 2 — 257,288 — Capital contribution/Loans to an entity 3 (“Entity”) — — 2,785,314 Investment income 1 73,884 — 833 |
Schedule of significant related party balances | The Group had the following significant related party balances as of December 31, 2020 and 2021, respectively: December 31, December 31, RMB in thousands Amount due from related parties Due from an investment fund 1 74,235 48,135 Due from the Entity 3 — 1,709,689 Due from other investees 4 90,497 283,492 Total 164,732 2,041,316 Amount due to related parties 5 — 216,434 1. In June 2019, to focus the Company’s efforts and resources on its core businesses, the Company transferred several equity investments of the Group to an investment fund. The Group contributed a total of RMB220.0 million cash into this fund as a limited partner, which is accounted for as an equity method investment. The cost of the equity investments transferred was RMB465.8 million. The consideration was RMB539.6 million, which was based on the estimated fair value of the investments. The difference between the consideration and cost of the investments was recognized as investment income. In July 2020, the Company acquired certain equity interests of two investments from the investment fund. The consideration was RMB110.0 million. The balances due from an investment fund as of December 31, 2020 and 2021 were consideration receivables and dividend receivables, which are non-trade in nature. 2. In September 2020, the Company acquired the rest equity interests of Chaodian from certain noncontrolling shareholders, which included some related parties of the Company. The consideration was determined by referenced to a third-party valuer’s valuation and the considerations were settled in 2020. 3. The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. The Company made capital contribution of RMB1,084.3 million and provided interest-bearing guaranteed loans of RMB 1,701.0 million to the Entity for its operation. The balance as of December 31, 2021 represents interest-bearing loans and interest expenses related to the Entity, which are non-trade in nature. The annual interest rates of the loans were 3.3%. 4. The balances as of December 31, 2020 and 2021 mainly represent interest-bearing loans and interest expenses of RMB105.6 and RMB279.2 million related to an equity investee, which are non-trade in nature. Interest rates of loans to the investee incurred in 2020 and 2021 were 2.8% and 4.5%, respectively. 5. Amount due to related parties as of December 31, 2021 are primarily considerations related to long-term investments, which are non-trade in nature. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Anime Business | |
Acquisitions | |
Schedule of consideration of acquisitions | Amount Amortization Period RMB in thousands Net assets acquired 189,763 Intangible assets —Brand 85,000 8 years —Vendor relationship 75,000 10 years —Non-compete 54,000 6 years Goodwill 283,402 Total 687,165 Total purchase price comprised of: Amount RMB in thousands Cash consideration 369,124 Share consideration 243,203 Fair value of previously held equity interests 74,838 Total 687,165 |
Comics Business | |
Acquisitions | |
Schedule of consideration of acquisitions | Amount Amortization Period RMB in thousands Net assets acquired 48,764 Intangible assets —Brand 23,000 10 years —User base 11,000 3 years —Copyrights 269,000 8 years —Technology 4,000 3 years —Non-compete clause 5,000 2 years Deferred tax liabilities (42,133 ) Goodwill 281,369 Total 600,000 Total purchase price comprised of: Amount Cash consideration 600,000 |
Other acquisitions | |
Acquisitions | |
Schedule of consideration of acquisitions | For the Year Ended December 31, 2020 2021 Amortization Amount RMB in thousands Net assets acquired 18,495 28,320 Intangible assets —Brand — 66,000 5 —User base 700 1,500 5 —Copyrights 49,000 2,100 3 to 10 —Technology — 3,500 5 —Vendor relationship 86,000 — 10 —On-going 69,000 64,000 3 to 4.5 —Customer relationship — 83,000 5 years —Non-compete clause — 28,000 6 years Noncontrolling interests (44,064 ) — Deferred tax liabilities (49,140 ) — Goodwill 283,760 477,746 Total 413,751 754,166 Total purchase price comprised of: Amount RMB in thousands Cash consideration 295,323 244,949 Share consideration 118,428 391,244 Fair value of previously held equity interests — 117,973 Total 413,751 754,166 |
Operations - Initial public off
Operations - Initial public offering ("IPO") and followed offerings (Details) ¥ in Thousands, $ in Thousands, $ in Billions | 1 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2021CNY (¥)shares | Mar. 31, 2021HKD ($)shares | Apr. 30, 2020shares | Apr. 30, 2019CNY (¥) | Apr. 30, 2019USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018shares | |
Operations and Reorganization [Line Items] | ||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 1,647,700 | $ 245,700 | ¥ 19,288,423 | $ 3,026,774 | ¥ 2,817,458 | ¥ 1,647,711 | ||||
Class Z Ordinary Shares | ||||||||||
Operations and Reorganization [Line Items] | ||||||||||
Ordinary shares, issued (in shares) | 28,750,000 | 28,750,000 | 17,310,696 | 25,063,451 | ||||||
Class Z Ordinary Shares | Over-allotment option [Member] | ||||||||||
Operations and Reorganization [Line Items] | ||||||||||
Ordinary shares, issued (in shares) | 3,750,000 | 3,750,000 | ||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 19,300,000 | $ 22.9 |
Operations - The Group (Details
Operations - The Group (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Shanghai Hode Information Technology Co., Ltd. ("Hode Information Technology") | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2013 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Mobile game operation |
Shanghai Kuanyu Digital Technology Co., Ltd. ("Shanghai Kuanyu"). | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2014 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Video distribution and game distribution |
Sharejoy Network Technology Co., Ltd. ("Sharejoy Network") | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2014 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Game distribution |
Shanghai Hehehe Culture Communication Co., Ltd. ("Shanghai Hehehe") | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2014 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | Comics distribution |
Shanghai Anime Tamashi Cultural Media Co., Ltd. ("Shanghai Anime Tamashi") | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2015 |
Percentage of Direct or Indirect Economic Ownership in Major VIEs and VIEs' subsidiaries | 100.00% |
Principal Activities | E-commerce platform |
Bilibili HK Limited | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | Hong Kong, 2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Investment holding |
Hode HK Limited | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | Hong Kong, 2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Investment holding |
Chaodian HK Limited | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | Hong Kong, 2019 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Investment holding |
Bilibili Co., Ltd. | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | Japan, 2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Business development |
Hode Shanghai Limited ("Hode Shanghai") | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2014 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Technology development |
Shanghai Bilibili Technology Co., Ltd | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2016 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | Technology development |
Chaodian (Shanghai) Technology Co., Ltd. | |
Company's major subsidiaries and VIEs | |
Place and Year of Incorporation | PRC, 2019 |
Percentage of Direct or Indirect Economic Ownership in Major Subsidiaries | 100.00% |
Principal Activities | E-commerce and advertising |
Operations - Contractual agree
Operations - Contractual agreements with major VIEs (Details) - VIEs - Exclusive Technology Consulting and Services Agreements - The Company or its relevant subsidiaries | 12 Months Ended |
Dec. 22, 2020 | |
Contractual agreements with major VIEs | |
Term of agreement | 10 years |
Termination notice before the term ends | 90 days |
Operations - Combined financial
Operations - Combined financial information of the Group's VIEs and Others (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021CNY (¥)entity | Dec. 31, 2021USD ($)entity | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018CNY (¥) | |
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | ¥ 7,523,108 | ¥ 4,678,109 | ¥ 4,962,660 | $ 1,180,540 | $ 734,097 | ¥ 3,540,031 | |
Time deposits | 7,632,334 | 4,720,089 | 1,197,680 | ||||
Accounts receivable, net | 1,382,328 | 1,053,641 | 216,917 | ||||
Prepayments and other current assets | 2,807,048 | 1,765,787 | 440,487 | ||||
Short-term investments | 15,060,722 | 3,357,189 | 2,363,356 | ||||
Long-term investments, net | 5,502,524 | 2,232,938 | 863,466 | ||||
Other non-current assets | 1,459,485 | 789,643 | 229,025 | ||||
Total assets | 52,053,151 | 23,865,608 | 8,168,275 | ||||
Accounts payable | 4,360,906 | 3,074,298 | 684,321 | ||||
Salary and welfare payables | 995,451 | 734,376 | 156,208 | ||||
Taxes payable | 203,770 | 127,192 | 31,976 | ||||
Short-term loans | 1,232,106 | 100,000 | 193,344 | ||||
Deferred revenue | 2,645,389 | 2,118,006 | 415,119 | ||||
Accrued liabilities and other payables | 2,416,955 | 1,237,676 | 379,273 | ||||
Other long-term payable | 481,982 | 350,934 | 75,634 | ||||
Total liabilities | 30,337,085 | 16,083,404 | 4,760,550 | ||||
Total Bilibili Inc's shareholders' deficit | 21,703,667 | 7,600,200 | 3,405,779 | ||||
Noncontrolling interests | 12,399 | 182,004 | 1,946 | ||||
Total shareholders' equity | 21,716,066 | 7,782,204 | 7,636,460 | 3,407,725 | ¥ 7,191,202 | ||
Total liabilities and shareholders' equity | 52,053,151 | 23,865,608 | $ 8,168,275 | ||||
Total revenues | 19,383,684 | $ 3,041,722 | 11,998,976 | 6,777,922 | |||
Gain/(Loss) from non-operations | (6,429,074) | (1,008,863) | (3,140,963) | (1,495,175) | |||
Loss before income tax expenses | (6,713,450) | (1,053,488) | (3,000,648) | (1,267,703) | |||
Income tax expenses | (95,289) | (14,953) | (53,369) | (35,867) | |||
Net loss | (6,808,739) | (1,068,441) | (3,054,017) | (1,303,570) | |||
Net loss attributable to noncontrolling interests | 19,511 | 3,062 | 46,605 | 14,597 | |||
Net loss attributable to the Bilibili Inc.'s shareholders | (6,789,228) | (1,065,379) | (3,011,704) | (1,288,973) | |||
Net cash provided by /(used in) operating activities | (2,647,000) | (415,372) | 753,103 | 194,551 | |||
Purchase of short-term investments | (71,748,847) | (11,258,960) | (26,731,176) | (9,973,879) | |||
Maturities of short-term investments | 60,524,888 | 9,497,676 | 24,921,538 | 9,993,525 | |||
Placements of time deposits | (10,697,444) | (1,678,662) | (10,907,296) | (4,920,099) | |||
Maturities of time deposits | 7,655,147 | 1,201,260 | 7,670,373 | 3,877,158 | |||
Net cash used in investing activities | (24,578,111) | (3,856,842) | (8,906,821) | (3,958,277) | |||
Net cash provided by financing activities | 30,389,152 | $ 4,768,720 | 8,335,419 | 5,078,842 | |||
Assets of VIE's used to settle obligations of respective VIE's registered capital | 494,100 | 92,100 | |||||
Assets of VIE's used to settle obligations of respective VIE's non-distributable statutory reserves | ¥ 22,600 | 17,900 | |||||
Number of VIE having variable interest but not primary beneficiary | entity | 0 | 0 | |||||
Consolidated VIEs without recourse to the primary beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | ¥ 377,114 | 349,190 | |||||
Time deposits | 6,997 | 22,161 | |||||
Accounts receivable, net | 524,311 | 343,099 | |||||
Amounts due from Group companies | 391,951 | 173,596 | |||||
Amount due from related parties | 101,983 | 59,117 | |||||
Prepayments and other current assets | 1,806,185 | 1,383,648 | |||||
Short-term investments | 927,124 | 1,175,309 | |||||
Long-term investments, net | 1,745,466 | 1,223,943 | |||||
Other non-current assets | 4,926,989 | 2,183,411 | |||||
Total assets | 10,808,120 | 6,913,474 | |||||
Accounts payable | 3,164,301 | 2,332,372 | |||||
Salary and welfare payables | 343,008 | 288,686 | |||||
Taxes payable | 128,817 | 106,492 | |||||
Short-term loans | 400,000 | 100,000 | |||||
Deferred revenue | 2,192,460 | 1,769,992 | |||||
Accrued liabilities and other payables | 1,184,523 | 449,370 | |||||
Amounts due to the Group companies | 7,214,146 | 3,752,973 | |||||
Amounts due to related parties | 117,901 | ||||||
Other long-term payable | 222,719 | 19,640 | |||||
Total liabilities | 14,967,875 | 8,819,525 | |||||
Total Bilibili Inc's shareholders' deficit | (4,170,459) | (1,941,724) | |||||
Noncontrolling interests | 10,704 | 35,673 | |||||
Total shareholders' equity | (4,159,755) | (1,906,051) | |||||
Total liabilities and shareholders' equity | 10,808,120 | 6,913,474 | |||||
Total revenues | 14,442,432 | 10,318,972 | 6,588,162 | ||||
Total costs and expenses | (17,147,663) | (11,154,230) | (7,137,789) | ||||
Gain/(Loss) from non-operations | (163,146) | 8,368 | 122,116 | ||||
Loss before income tax expenses | (2,868,377) | (826,890) | (427,511) | ||||
Income tax expenses | (38,997) | (27,080) | (20,603) | ||||
Net loss | (2,907,374) | (853,970) | (448,114) | ||||
Net loss attributable to noncontrolling interests | 10,367 | 8,501 | 1,936 | ||||
Net loss attributable to the Bilibili Inc.'s shareholders | (2,897,007) | (845,469) | (446,178) | ||||
Net cash provided by /(used in) operating activities | (682,959) | 1,476,494 | 271,299 | ||||
Purchase of short-term investments | (12,610,305) | (13,973,904) | (6,535,669) | ||||
Maturities of short-term investments | 12,954,425 | 13,498,485 | 6,113,861 | ||||
Placements of time deposits | (39,318) | (25,515) | (7,584) | ||||
Maturities of time deposits | 54,319 | 7,896 | 7,584 | ||||
Other investing activities | (3,265,756) | (1,928,125) | (1,097,123) | ||||
Net cash used in investing activities | (2,906,635) | (2,421,163) | (1,518,931) | ||||
Other financing activities | 300,000 | 100,000 | |||||
Net cash provided by financing activities | 3,607,226 | 1,090,287 | 1,300,740 | ||||
Consolidated VIEs without recourse to the primary beneficiary | Third-party | |||||||
Variable Interest Entity [Line Items] | |||||||
Total revenues | 12,867,536 | 9,651,207 | 6,056,332 | ||||
Total costs and expenses | (16,283,295) | (9,931,047) | (5,795,826) | ||||
Net cash provided by /(used in) operating activities | (1,729,079) | 1,965,376 | 823,119 | ||||
Consolidated VIEs without recourse to the primary beneficiary | Inter-company | |||||||
Variable Interest Entity [Line Items] | |||||||
Total revenues | 1,574,896 | 667,765 | 531,830 | ||||
Consolidated VIEs without recourse to the primary beneficiary | Inter-company | Consulting and services charges | |||||||
Variable Interest Entity [Line Items] | |||||||
Total costs and expenses | (593,272) | (1,021,596) | (1,266,411) | ||||
Consolidated VIEs without recourse to the primary beneficiary | Other inter-company | |||||||
Variable Interest Entity [Line Items] | |||||||
Total costs and expenses | (271,096) | (201,587) | (75,552) | ||||
Consolidated VIEs without recourse to the primary beneficiary | Group companies | |||||||
Variable Interest Entity [Line Items] | |||||||
Net cash provided by /(used in) operating activities | 1,683,907 | 586,017 | 1,027,392 | ||||
Investments and loans from Group companies | 3,307,226 | 990,287 | 1,300,740 | ||||
Consolidated VIEs without recourse to the primary beneficiary | Group companies | Consulting and services charges | |||||||
Variable Interest Entity [Line Items] | |||||||
Net cash provided by /(used in) operating activities | ¥ (637,787) | ¥ (1,074,899) | ¥ (1,579,212) |
Operations - Liquidity (Details
Operations - Liquidity (Details) ¥ in Thousands, $ in Thousands, $ in Billions | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Nov. 30, 2021CNY (¥) | Nov. 30, 2021USD ($) | Mar. 31, 2021shares | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Apr. 30, 2020CNY (¥)shares | Apr. 30, 2020USD ($)shares | Apr. 30, 2019CNY (¥) | Apr. 30, 2019USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2021USD ($) | |
Issuance of preferred shares | |||||||||||||||||||
Net losses | ¥ 6,808,739 | $ 1,068,441 | ¥ 3,054,017 | ¥ 1,303,570 | |||||||||||||||
Net cash (used in)/provided by operating activities | (2,647,000) | (415,372) | 753,103 | 194,551 | |||||||||||||||
Accumulated deficit | 13,971,300 | 7,175,339 | $ 2,192,403 | ||||||||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 1,647,700 | $ 245,700 | 19,288,423 | 3,026,774 | 2,817,458 | 1,647,711 | |||||||||||||
Convertible senior notes (the "April 2026 Notes") due April 2026 [Member] | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 3,356,100 | $ 488,200 | |||||||||||||||||
Convertible senior notes (the "2027 Notes") due 2027 [Member] | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 5,594,800 | $ 786,100 | ¥ 5,594,800 | $ 786,100 | |||||||||||||||
Net proceeds from the offering, after deducting commissions and offerings expenses | 19,300,000 | $ 22.9 | |||||||||||||||||
Convertible senior notes (the "December 2026 Notes") due December 2026 [Member] | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | ¥ 10,100,000 | $ 1,576,600 | ¥ 10,100,000 | $ 1,576,600 | |||||||||||||||
Class Z Ordinary Shares | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Ordinary shares, issued (in shares) | 28,750,000 | 17,310,696 | 17,310,696 | 25,063,451 | 25,063,451 | ||||||||||||||
Class Z Ordinary Shares | Convertible senior notes (the "2027 Notes") due 2027 [Member] | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Ordinary shares, issued (in shares) | 17,310,696 | 17,310,696 | |||||||||||||||||
ADSs | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Ordinary shares, issued (in shares) | 17,310,696 | 17,310,696 | |||||||||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 2,817,500 | $ 399,400 | ¥ 2,170,800 | $ 317,200 | |||||||||||||||
ADSs | Convertible senior notes (the "2027 Notes") due 2027 [Member] | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 2,817,500 | $ 399,400 | |||||||||||||||||
IPO [Member] | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Proceeds from issuance initial public offering | ¥ 2,781,800 | $ 443,300 | |||||||||||||||||
Notes And Primary Offering [Member] | Convertible senior notes (the "April 2026 Notes") due April 2026 [Member] | |||||||||||||||||||
Issuance of preferred shares | |||||||||||||||||||
Proceeds From Issuance Initial Public Offering And Notes Net Of Offering Costs | ¥ 5,003,800 | $ 733,900 |
Significant Accounting Polici_4
Significant Accounting Policies - Convenience Translation, Cash & cash equivalents and time deposits (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash and cash equivalents and time deposits | ||||||
"Convenience translation rate (USD to RMB) | 6.3726 | 6.3726 | ||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | ¥ 7,523,108,000 | ¥ 4,678,109,000 | $ 1,180,540 | $ 734,097 | ¥ 4,962,660,000 | ¥ 3,540,031,000 |
Time deposits | 7,632,334,000 | 4,720,089,000 | 1,197,680 | |||
Restricted cash | 0 | 0 | ||||
PRC Subsidiaries and Variable Interest Entities | ||||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | ¥ 1,554,500,000 | ¥ 2,144,500,000 | ||||
Cash and cash equivalents held by PRC subsidiaries and VIEs (as a percent) | 21.00% | 46.00% | ||||
Cash held in accounts managed by online payment platforms | ||||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | ¥ 50,700,000 | ¥ 42,000,000 | ||||
Denominated in US dollars | ||||||
Cash and cash equivalents and time deposits | ||||||
Cash and cash equivalents | 6,375,100,000 | 3,798,500,000 | 999,900 | 582,200 | ||
Time deposits | ¥ 7,632,300,000 | ¥ 4,705,100,000 | $ 1,197,100 | $ 721,100 |
Significant Accounting Polici_5
Significant Accounting Policies - Receivables, net (Details) ¥ in Millions | Dec. 31, 2021CNY (¥) |
Accounting Standards Update 2016-13 [Member] | |
Accumulated deficit | ¥ 17.9 |
Significant Accounting Polici_6
Significant Accounting Policies - Movements of the allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at January 1 | ¥ 121,003 | ¥ 35,596 | ¥ 14,420 | |
Provisions | 189,165 | $ 29,684 | 99,165 | 9,396 |
Write-offs | (17,695) | (13,758) | (6,120) | |
Balance at December 31 | ¥ 292,473 | 121,003 | 35,596 | |
Accounting Standards Update 2016-13 [Member] | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at January 1 | 17,900 | |||
Balance at December 31 | 17,900 | |||
Previously Reported [Member] | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at January 1 | ¥ 17,696 | |||
Balance at December 31 | ¥ 17,696 |
Significant Accounting Polici_7
Significant Accounting Policies - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Licensed copyrights of content | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Minimum | License rights of mobile games | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Minimum | Intellectual property and others | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 1 year |
Maximum | Licensed copyrights of content | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 8 years |
Maximum | License rights of mobile games | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Maximum | Intellectual property and others | |
Finite-lived intangible assets, property plant and equipment [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Significant Accounting Polici_8
Significant Accounting Policies - Goodwill (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies | |||
Goodwill impairment charges | ¥ 0 | ¥ 0 | ¥ 0 |
Significant Accounting Polici_9
Significant Accounting Policies - Sales & marketing expenses, Share-based compensation & Employees benefits & Taxation (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies | |||
Marketing and promotional expenses | ¥ 5,102.9 | ¥ 3,006 | ¥ 934.7 |
Significant Accounting Polic_10
Significant Accounting Policies - Leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies | |||
Lease expire | Dec. 31, 2026 | ||
Weighted average term | 2 years 8 months 12 days | 3 years 1 month 6 days | |
Discount rate | 4.75% | 4.75% | |
Operating Lease, Cost | ¥ 177,400 | ¥ 107,200 | ¥ 79,400 |
Operating Leases [Abstract] | |||
2022 | 207,531 | ||
2023 | 148,596 | ||
2024 | 87,763 | ||
2025 | 49,981 | ||
2026 and thereafter | 3,735 | ||
Total future lease payments | 497,606 | ||
Impact of discounting remaining lease payments | (41,635) | ||
Total lease liabilities | ¥ 455,971 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Liabilities |
Significant Accounting Polic_11
Significant Accounting Policies - Schedule of Lease Cost (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flow, Operating Activities, Lessee [Abstract] | ||
Cash payments for operating leases | ¥ 161,997 | ¥ 107,772 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 152,481 | ¥ 260,867 |
Significant Accounting Polic_12
Significant Accounting Policies - Revenue Recognition (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Significant Accounting Policies | ||||
Deferred revenue, revenue recognized | ¥ 1,993,700 | ¥ 1,238,800 | ¥ 943,400 | |
Practical expedient related to performance obligations | true | true | ||
Total net revenues | ¥ 19,383,684 | $ 3,041,722 | 11,998,976 | 6,777,922 |
Mobile games | ||||
Significant Accounting Policies | ||||
Total net revenues | 5,090,926 | 4,803,382 | 3,597,809 | |
Value-added services | ||||
Significant Accounting Policies | ||||
Total net revenues | 6,934,886 | 3,845,663 | 1,641,043 | |
Advertising | ||||
Significant Accounting Policies | ||||
Total net revenues | 4,523,421 | 1,842,772 | 817,016 | |
E-commerce and others | ||||
Significant Accounting Policies | ||||
Total net revenues | ¥ 2,834,451 | ¥ 1,507,159 | ¥ 722,054 | |
Maximum | Live broadcasting and other VAS | ||||
Significant Accounting Policies | ||||
Period recognized for time-based virtual item | 1 year | 1 year |
Significant Accounting Polic_13
Significant Accounting Policies - Statutory reserves (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies | |||
Appropriations to general reserve funds and statutory surplus funds | ¥ 6,737 | ¥ 4,421 | ¥ 5,797 |
Minimum | |||
Significant Accounting Policies | |||
After tax profit to be transferred to statutory surplus fund (as a percent) | 10.00% | ||
After tax profit to be transferred to general reserve fund (as a percent) | 10.00% | ||
Maximum | |||
Significant Accounting Policies | |||
Limit of surplus fund as a percentage of registered capital, beyond which no further appropriation is required | 50.00% | ||
Limit of general reserve fund as a percentage of registered capital, beyond which no further appropriation is required | 50.00% |
Significant Accounting Polic_14
Significant Accounting Policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2021Segment | |
Significant Accounting Policies | |
Number of operating segments | 1 |
Concentrations and Risks (Detai
Concentrations and Risks (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)item | Dec. 31, 2020CNY (¥)item | Dec. 31, 2019item | Dec. 31, 2021USD ($) | |
Concentrations and Risks | ||||
Accounts receivable, net | ¥ 1,382,328 | ¥ 1,053,641 | $ 216,917 | |
Telecommunications service provider | ||||
Concentrations and Risks | ||||
Total number of telecommunications service providers | 126 | 116 | 107 | |
Telecommunications service provider | Servers and bandwidth expenditure | ||||
Concentrations and Risks | ||||
Number of service providers providing 10% or more of the Group's servers and bandwidth expenditure | 3 | 3 | 2 | |
Telecommunications service provider | 10% or greater service providers | Servers and bandwidth expenditure | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 55.00% | 55.00% | 45.00% | |
Credit risk | Accounts receivable | Distribution channel A | ||||
Concentrations and Risks | ||||
Number of distribution channels with receivable balance exceeding 10% of the Group's accounts receivable | 1 | 1 | ||
Accounts receivable, net | ¥ | ¥ 171,680 | ¥ 146,907 | ||
Distribution channel risk | ||||
Concentrations and Risks | ||||
Number of distribution channel concentration over ten percent benchmark | 0 | |||
Distribution channel risk | Net revenues | Distribution channel | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 11.00% | 17.00% | ||
Mobile games | ||||
Concentrations and Risks | ||||
Number of mobile games concentration over ten percent benchmark | 0 | |||
Mobile games | Mobile games | Net revenues | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 26.00% | 40.00% | 53.00% | |
Mobile games | Mobile game 1 | Mobile game revenues | ||||
Concentrations and Risks | ||||
Concentration risk percentage | 11.00% | 31.00% |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Prepayments and Other Current Assets | ||||
Prepayments for revenue sharing cost | [1] | ¥ 1,117,431 | ¥ 782,518 | |
Prepayments for sales tax | 523,282 | 202,025 | ||
Inventories, net | 455,767 | 160,006 | ||
Prepayments of marketing and other operational expenses | 181,764 | 64,068 | ||
Deposits | 106,555 | 51,661 | ||
Prepayments to inventory suppliers | 94,746 | 19,970 | ||
Prepayments for content cost | 73,496 | 195,175 | ||
Loans to investees or ongoing investments | 68,681 | 187,672 | ||
Prepayments /receivables relating to jointly invested content | 36,246 | 28,664 | ||
Interest income receivable | 10,927 | 6,396 | ||
Others | 138,153 | 67,632 | ||
Total | ¥ 2,807,048 | $ 440,487 | ¥ 1,765,787 | |
[1] | App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheets as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going services to end-users. The related direct and incremental platform commissions as well as game developers’ licensing fees are deferred and reported in “Prepayments and Other Current Assets” on the consolidated balance sheets. |
Short-term Investments (Details
Short-term Investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Short-term Investments | ||||
Short-term investments | ¥ 15,060,722 | ¥ 3,357,189 | $ 2,363,356 | |
Investment income related to short-term investments | 138,300 | 74,000 | ¥ (3,100) | |
Financial products | ||||
Short-term Investments | ||||
Short-term investments | 13,583,580 | 2,866,643 | ||
Investments in publicly traded companies | ||||
Short-term Investments | ||||
Short-term investments | 1,426,946 | 434,609 | ||
Money market funds | ||||
Short-term Investments | ||||
Short-term investments | ¥ 50,196 | ¥ 55,937 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Property and Equipment, Net | |||||
Property plant and equipment, gross | ¥ 2,559,098,000 | ¥ 1,435,641,000 | |||
Less: accumulated depreciation | (1,208,842,000) | (673,700,000) | |||
Net book value | 1,350,256,000 | 761,941,000 | $ 211,885 | ||
Depreciation expenses | 538,600,000 | $ 84,518 | 326,512,000 | ¥ 191,784,000 | |
Impairment charge recognized | 0 | 0 | ¥ 0 | ||
Leasehold improvements | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | 221,280,000 | 118,581,000 | |||
Servers and computers | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | 2,277,947,000 | 1,286,310,000 | |||
Others | |||||
Property and Equipment, Net | |||||
Property plant and equipment, gross | ¥ 59,871,000 | ¥ 30,750,000 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Intangible Assets, Net | |||||
Gross carrying value | ¥ 7,697,132,000 | ¥ 5,609,751,000 | |||
Accumulated amortization | (3,861,532,000) | (3,252,792,000) | |||
Total | 3,835,600,000 | 2,356,959,000 | $ 601,889 | ||
Amortization expenses | 1,903,200,000 | $ 298,658 | 1,395,129,000 | ¥ 905,613,000 | |
Impairment charge | 0 | 0 | ¥ 0 | ||
Licensed copyrights of content | |||||
Intangible Assets, Net | |||||
Gross carrying value | 5,567,213,000 | 4,556,683,000 | |||
Accumulated amortization | (3,245,622,000) | (2,891,742,000) | |||
Total | ¥ 2,321,591,000 | 1,664,941,000 | |||
Weighted-average useful lives | 3 years 7 months 6 days | 3 years 7 months 6 days | |||
License rights of mobile games | |||||
Intangible Assets, Net | |||||
Gross carrying value | ¥ 455,687,000 | 299,786,000 | |||
Accumulated amortization | (229,559,000) | (119,493,000) | |||
Total | 226,128,000 | 180,293,000 | |||
Intellectual property and others | |||||
Intangible Assets, Net | |||||
Gross carrying value | 1,674,232,000 | 753,282,000 | |||
Accumulated amortization | (386,351,000) | (241,557,000) | |||
Total | ¥ 1,287,881,000 | ¥ 511,725,000 |
Intangible Assets, Net - Intang
Intangible Assets, Net - Intangible assets amortization expense for future years (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Intangible assets amortization expense | |||
2022 | ¥ 1,300,530 | ||
2023 | 918,258 | ||
2024 | 589,221 | ||
2025 | 337,846 | ||
2026 | 264,088 | ||
Thereafter | 425,657 | ||
Total | ¥ 3,835,600 | $ 601,889 | ¥ 2,356,959 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Goodwill [Roll Forward] | ||||
Beginning balance | ¥ 1,295,786,000 | ¥ 1,012,026,000 | ||
Additions (Note 24) | 1,042,517,000 | 283,760,000 | ||
Ending balance | 2,338,303,000 | $ 366,931 | 1,295,786,000 | ¥ 1,012,026,000 |
Impairment charge recognized | ¥ 0 | ¥ 0 | ¥ 0 |
Long-term Investments, Net - Su
Long-term Investments, Net - Summary of Equity Method Investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Long-term Investments [Abstract] | |||
Equity investments accounted for using the measurement alternative | ¥ 3,344,465 | ¥ 1,791,393 | |
Equity investments accounted for using the equity method | 1,235,289 | 188,199 | |
Investments accounted for at fair value | 922,770 | 253,346 | |
Total | ¥ 5,502,524 | $ 863,466 | ¥ 2,232,938 |
Long-term Investments, Net (Det
Long-term Investments, Net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Long-term Investments [Abstract] | ||||
Re-measurement loss of equity investments | ¥ 31,500,000 | ¥ 0 | ¥ 0 | |
Impairment charges for long-term investments | 91,500,000 | $ 14,357 | 8,000,000 | 5,900,000 |
Loss from equity method investments | 37,200,000 | $ 5,834 | 50,531,000 | 24,173,000 |
Fair value change on financial products with original maturities greater than one year | ¥ (156,000,000) | ¥ 24,900,000 | ¥ 13,200,000 |
Taxation - Composition of incom
Taxation - Composition of income tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Taxation | ||||
Current income tax expenses | ¥ 102,715 | ¥ 48,081 | ¥ 29,452 | |
Withholding income tax expenses | 14,066 | 18,754 | 16,894 | |
Deferred tax benefits | (21,492) | $ (3,373) | (13,466) | (10,479) |
Total | ¥ 95,289 | $ 14,953 | ¥ 53,369 | ¥ 35,867 |
Taxation - Income taxes (Detail
Taxation - Income taxes (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021HKD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021CNY (¥) | ||
Income taxes | |||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | ||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | |||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | ||
Permanent differences | (1.19%) | 0.60% | (0.83%) | ||
Tax rate difference from statutory rate in other jurisdictions | [1] | (1.43%) | (3.90%) | (0.39%) | |
Tax effect of preferential tax treatments | (7.94%) | (8.29%) | (8.48%) | ||
Withholding tax | (0.21%) | (0.63%) | (1.33%) | ||
Change in valuation allowance | (15.65%) | (14.56%) | (16.80%) | ||
Effective income tax rate | (1.42%) | (1.78%) | (2.83%) | ||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | ¥ 9,785,503 | ||||
Hong Kong [Member] | |||||
Income taxes | |||||
Threshold limit for Revenue from Subsidiary | $ | $ 2 | ||||
Loss expiring in 2022 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 42,591 | ||||
Loss expiring in 2023 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 100,218 | ||||
Loss expiring in 2024 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 200,747 | ||||
Loss expiring in 2025 | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 286,268 | ||||
Loss expiring in 2026 And thereafter | |||||
Operating loss carryforwards | |||||
Net operating tax loss carry forwards | 9,155,679 | ||||
Cayman Islands | |||||
Income taxes | |||||
Withholding tax amount | ¥ 0 | ||||
Hong Kong | |||||
Income taxes | |||||
Income tax rate (as a percent) | 16.50% | ||||
Half the current tax rate | 8.25% | ||||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | |||||
Statutory income tax rate | 16.50% | ||||
China | |||||
Income taxes | |||||
Income tax rate (as a percent) | 25.00% | ||||
Reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate | |||||
Statutory income tax rate | 25.00% | ||||
China | Certain subsidiaries | Encouraged Enterprises [Member] | |||||
Income taxes | |||||
Preferential tax rate | 15.00% | ||||
[1] | It is primarily due to the tax effect of the Company as a tax-exempt entity incorporated in the Cayman Islands. |
Taxation - Sales tax (Details)
Taxation - Sales tax (Details) | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2021 |
Services rendered | |||
Sales tax | |||
Value added tax rate (as a percent) | 6.00% | ||
Goods sold | Minimum | |||
Sales tax | |||
Value added tax rate (as a percent) | 0.00% | ||
Goods sold | Maximum | |||
Sales tax | |||
Value added tax rate (as a percent) | 16.00% | ||
Advertising And Marketing Revenues | |||
Sales tax | |||
Culture business construction fee percentage | 3.00% | 1.50% | |
Culture business construction fee rate date up to which the prevailing rate is applicable | Dec. 31, 2024 |
Taxation - Deferred tax assets
Taxation - Deferred tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets: | |||
Deferred revenue | ¥ 143,688 | ¥ 163,620 | |
Accrued expenses and other payables | 150,092 | 128,886 | |
Advertising expenses in excess of deduction limit | 130,720 | 65,674 | |
Net operating tax loss carry forwards | 1,662,884 | 621,035 | |
Others | 71,048 | 19,036 | |
Total deferred tax assets | 2,158,432 | 998,251 | |
Less: valuation allowance | (2,122,077) | (977,333) | ¥ (537,359) |
Net deferred tax assets | 36,355 | 20,918 | |
Deferred tax liabilities | |||
Acquired intangible assets (Note 24) | (82,191) | (46,112) | |
Total deferred tax liabilities | (82,191) | (46,112) | |
Movement of the aggregate valuation allowances for deferred tax assets | |||
Balance at January 1 | (977,333) | (537,359) | (293,955) |
Re-measurement due to applicable preferential tax rate | 105 | ||
Addition | (1,154,342) | (484,445) | (248,896) |
Expiration of loss carry forward and impact of disposal of subsidiaries | 9,598 | 44,366 | 5,492 |
Balance at December 31 | ¥ (2,122,077) | ¥ (977,333) | ¥ (537,359) |
Taxation - Withholding income t
Taxation - Withholding income tax on dividends (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Withholding income tax | |
Withholding tax rate on dividend distributed by foreign investment entities (as a percent) | 10.00% |
Withholding tax rate on dividends paid by a FIE to its immediate holding company in Hong Kong (as a percent) | 5.00% |
Minimum percentage of ownership interests held by foreign investors for lower withholding tax rate (as a percent) | 25.00% |
Taxes Payable (Details)
Taxes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Taxes Payable | |||
EIT payable | ¥ 69,773 | ¥ 31,181 | |
VAT payable | 52,614 | 50,881 | |
Withholding individual income taxes for employees | 44,968 | 20,465 | |
Withholding income tax payable | 29,242 | 18,300 | |
Others | 7,173 | 6,365 | |
Total | ¥ 203,770 | $ 31,976 | ¥ 127,192 |
Short-term loans (Details)
Short-term loans (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
Short-term Debt [Line Items] | |||
Total | ¥ 1,232,106 | ¥ 100,000 | $ 193,344 |
Unsecured Debt [Member] | |||
Short-term Debt [Line Items] | |||
Interest Rate range | 3.70% | ||
Maturity Date | within 12 months | within 12 months | |
Unsecured bank loans | ¥ 943,658 | ¥ 100,000 | |
Unsecured Debt [Member] | Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Interest Rate range | 3.70% | 3.70% | |
Unsecured Debt [Member] | Minimum [Member] | |||
Short-term Debt [Line Items] | |||
Interest Rate range | 3.60% | 3.60% | |
Unsecured Borrowing [Member] | |||
Short-term Debt [Line Items] | |||
Interest Rate range | 3.95% | 3.95% | |
Maturity Date | within 12 months | ||
Unsecured borrowing | ¥ 288,448 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Payables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accrued Liabilities and Other Payables | |||
Accrued marketing expenses | ¥ 1,321,776 | ¥ 783,455 | |
Consideration payable for acquisitions and investments | 526,453 | 125,363 | |
Leasing liabilities - current portion | ¥ 206,758 | ¥ 150,402 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total | Total | Total |
Payables to producers and licensors | ¥ 139,951 | ¥ 63,307 | |
Professional fees | 64,510 | 38,573 | |
Interest payable | 26,469 | 14,041 | |
Advances from/payables to third parties | 14,386 | 5,869 | |
Other staff related cost | 5,325 | 13,872 | |
Others | 111,327 | 42,794 | |
Total | ¥ 2,416,955 | $ 379,273 | ¥ 1,237,676 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) $ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||
Nov. 30, 2021USD ($)$ / shares | Nov. 30, 2021CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2020CNY (¥) | Apr. 30, 2019USD ($) | Apr. 30, 2019CNY (¥) | Dec. 31, 2021USD ($)shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Nov. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 01, 2020$ / shares | Apr. 30, 2019CNY (¥) | Apr. 01, 2019$ / shares | |
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt principal amount | ¥ 18,039,125 | ¥ 8,482,370 | |||||||||||||||
Unamortized debt issuance costs | (255,033) | (141,448) | |||||||||||||||
Long-Term Debt, Maturity, Year One | 153,700 | ||||||||||||||||
Long term debt, Maturity, Year two and three | 457,200 | ||||||||||||||||
Long term debt, Maturity, After year three | 18,200,000 | ||||||||||||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long term debt, Fair value | 21,200,000 | ||||||||||||||||
April 2026 Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt principal amount | $ 500,000,000 | 2,737,500 | 3,262,500 | ||||||||||||||
Long-term debt interest rate | 1.375% | 1.375% | |||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | $ 488,200,000 | ¥ 3,356,100 | |||||||||||||||
Long-term debt issuance cost | $ 11,800,000 | ¥ 81,100 | |||||||||||||||
Debt instrument repurchase face amount percentage | 100.00% | 100.00% | |||||||||||||||
Interest expense debt | $ 7,600,000 | 49,100 | $ 8,500,000 | 58,600 | $ 6,400,000 | ¥ 44,900 | |||||||||||
Unamortized debt issuance costs | 39,800 | 58,100 | |||||||||||||||
Debt conversion, Original debt, Amount | $ | 70,600,000 | ||||||||||||||||
2027 Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt principal amount | $ 800,000,000 | 5,100,600 | 5,219,900 | ||||||||||||||
Long-term debt interest rate | 1.25% | 1.25% | |||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | $ 786,100,000 | ¥ 5,594,800 | 786,100,000 | 5,594,800 | |||||||||||||
Long-term debt issuance cost | $ 13,900,000 | ¥ 98,600 | |||||||||||||||
Debt instrument repurchase face amount percentage | 100.00% | 100.00% | |||||||||||||||
Interest expense debt | 11,900,000 | 76,800 | $ 6,900,000 | 46,800 | |||||||||||||
Unamortized debt issuance costs | 69,200 | ¥ 83,300 | |||||||||||||||
Debt conversion, Original debt, Amount | $ | 1,000 | ||||||||||||||||
December 2026 Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt principal amount | $ 1,600,000,000 | 10,201,100 | |||||||||||||||
Long-term debt interest rate | 0.50% | 0.50% | |||||||||||||||
Proceeds from issuance of Long-term Debt, net of issuance cost | $ 1,576,600,000 | ¥ 10,100,000 | 1,576,600,000 | 10,100,000 | |||||||||||||
Long-term debt issuance cost | $ 23,400,000 | ¥ 149,600 | |||||||||||||||
Debt instrument repurchase face amount percentage | 100.00% | 100.00% | |||||||||||||||
Interest expense debt | $ 1,400,000 | 8,700 | |||||||||||||||
Unamortized debt issuance costs | ¥ 146,000 | ||||||||||||||||
American Depository Shares [Member] | April 2026 Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Convertible debt, conversion rate | 40.4040 | 40.4040 | |||||||||||||||
Convertible debt, conversion price | $ / shares | $ 24.75 | ||||||||||||||||
Debt conversion, Converted instrument, Shares issued | shares | 2,854,253 | 2,854,253 | |||||||||||||||
American Depository Shares [Member] | 2027 Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Convertible debt, conversion rate | 24.5516 | 24.5516 | |||||||||||||||
Convertible debt, conversion price | $ / shares | $ 40.73 | ||||||||||||||||
Debt conversion, Converted instrument, Shares issued | shares | 24 | 24 | |||||||||||||||
American Depository Shares [Member] | December 2026 Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Convertible debt, conversion rate | 10.6419 | 10.6419 | |||||||||||||||
Convertible debt, conversion price | $ / shares | $ 93.97 |
Long-Term Debt - Summary of the
Long-Term Debt - Summary of the Company's Unsecured Senior Notes (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Carrying value | ¥ 17,784,092 | ¥ 8,340,922 |
Unamortized discount and debt issuance costs | 255,033 | 141,448 |
Total principal amounts of unsecured senior notes | 18,039,125 | 8,482,370 |
April 2026 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value | ¥ 2,697,698 | 3,204,309 |
Effective interest rate | 1.74% | |
2027 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value | ¥ 5,031,312 | ¥ 5,136,613 |
Effective interest rate | 1.52% | |
December 2026 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value | ¥ 10,055,082 | |
Effective interest rate | 0.80% |
Ordinary Shares (Details)
Ordinary Shares (Details) ¥ in Thousands, $ in Thousands, $ in Billions | 1 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2021CNY (¥)shares | Mar. 31, 2021HKD ($)shares | Apr. 30, 2020CNY (¥)shares | Apr. 30, 2020USD ($)shares | Apr. 30, 2019CNY (¥) | Apr. 30, 2019USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares | |
Ordinary shares | ||||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 1,647,700 | $ 245,700 | ¥ 19,288,423 | $ 3,026,774 | ¥ 2,817,458 | ¥ 1,647,711 | ||||||
ADSs | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary shares, issued (in shares) | 17,310,696 | 17,310,696 | ||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 2,817,500 | $ 399,400 | ¥ 2,170,800 | $ 317,200 | ||||||||
Class Z Ordinary Shares | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary shares, issued (in shares) | 28,750,000 | 28,750,000 | 17,310,696 | 17,310,696 | 25,063,451 | 25,063,451 | ||||||
Class Z Ordinary Shares | Over-allotment option [Member] | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary shares, issued (in shares) | 3,750,000 | 3,750,000 | ||||||||||
Net proceeds from the offering, after deducting offerings expenses | ¥ 19,300,000 | $ 22.9 |
Employee Benefits (Details)
Employee Benefits (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefits | |||
Contributions to medical and pension schemes | ¥ 695,310 | ¥ 195,655 | ¥ 215,553 |
Other employee benefits | 65,990 | 40,216 | 24,180 |
Total | ¥ 761,300 | ¥ 235,871 | ¥ 239,733 |
Share-based Compensation - Desc
Share-based Compensation - Description of share option plans (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Jul. 31, 2014 | |
Description of share option plans | ||
Total unrecognized compensation expenses related to unvested awards | ¥ 4,497.6 | |
Weighted average remaining vesting period | 4 years 2 months 12 days | |
Minimum | ||
Description of share option plans | ||
Vesting Period | 2 years | |
Expiration period | 6 years | |
Maximum | ||
Description of share option plans | ||
Vesting Period | 6 years | |
Expiration period | 7 years | |
Class Z Ordinary Shares | Global Share Plan | Maximum | ||
Description of share option plans | ||
Aggregate number of shares issuable under the plan | 19,880,315 | |
Class Z Ordinary Shares | 2018 Plan | Maximum | ||
Description of share option plans | ||
Aggregate number of shares issuable under the plan | 23,367,875 |
Share-based Compensation - Valu
Share-based Compensation - Valuation assumptions (Details) - Share options | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation assumptions | |||
Expected volatility, minimum | 53.00% | 50.10% | 49.60% |
Expected volatility, maximum | 53.50% | 55.00% | 52.10% |
Weighted average volatility | 53.20% | 51.90% | 50.80% |
Expected dividends | |||
Risk-free rate, minimum | 0.90% | 0.40% | 1.40% |
Risk-free rate, maximum | 1.40% | 0.70% | 2.40% |
Contractual term (in years) | 6 years | ||
Minimum | |||
Valuation assumptions | |||
Contractual term (in years) | 6 years | 6 years | |
Maximum | |||
Valuation assumptions | |||
Contractual term (in years) | 7 years | 7 years |
Share-based Compensation - Shar
Share-based Compensation - Share options activities (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021$ / shares | Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2020$ / shares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2021CNY (¥)shares | |
Share options activities | ||||||||
Beginning balance (in shares) | 22,297,000 | 12,174,000 | 12,314,000 | |||||
Granted (in shares) | 3,948,000 | 15,716,000 | 3,194,000 | |||||
Exercised (in shares) | (3,263,000) | (4,492,000) | (2,255,000) | |||||
Forfeited (in shares) | (472,000) | (1,101,000) | (1,079,000) | |||||
Ending balance (in shares) | 22,510,000 | 22,297,000 | 12,174,000 | 12,314,000 | ||||
Exercisable (in shares) | 2,052,000 | |||||||
Weighted Average Exercise Price | ||||||||
Beginning balance (in USD/shares) | $ / shares | $ 2.0236 | $ 0.0001 | $ 0.0001 | |||||
Granted (in USD/shares) | $ / shares | 0.0001 | 2.9007 | 0.0001 | |||||
Exercised (in USD/shares) | $ / shares | 0.0001 | 0.0001 | 0.0001 | |||||
Forfeited (in USD/shares) | $ / shares | 0.0001 | 0.4234 | 0.0001 | |||||
Ending balance (in USD/shares) | $ / shares | 2.0010 | 2.0236 | 0.0001 | |||||
Exercisable (in USD/shares) | $ / shares | 0.0001 | |||||||
Additional Disclosures | ||||||||
Weighted Average Remaining Contractual Life (In years) | 5 years 3 days | 5 years 4 months 28 days | 4 years 1 month 17 days | 4 years 5 months 15 days | ||||
Weighted Average Remaining Contractual Life, Exercisable (In years) | 3 years 11 months 26 days | |||||||
Aggregate Intrinsic Value, Beginning balance | ¥ | ¥ 12,177,047 | ¥ 1,581,408 | ¥ 1,233,028 | |||||
Aggregate Intrinsic Value, Ending balance | ¥ | ¥ 6,372,503 | ¥ 12,177,047 | ¥ 1,581,408 | ¥ 1,233,028 | ||||
Aggregate Intrinsic Value, Exercisable | ¥ | ¥ 606,974 | |||||||
Weighted average grant date fair value of options granted | (per share) | $ 65.5 | ¥ 423.6 | $ 38.8 | ¥ 262 | $ 15 | ¥ 104.4 | ||
Employees | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 11,355,000 | 8,274,000 | 7,641,000 | |||||
Granted (in shares) | 3,927,000 | 6,966,000 | 2,464,000 | |||||
Exercised (in shares) | (2,094,000) | (2,784,000) | (1,352,000) | |||||
Forfeited (in shares) | (472,000) | (1,101,000) | (479,000) | |||||
Ending balance (in shares) | 12,716,000 | 11,355,000 | 8,274,000 | 7,641,000 | ||||
Exercisable (in shares) | 952,000 | |||||||
Senior Management | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 10,712,000 | 3,655,000 | 4,235,000 | |||||
Granted (in shares) | 8,700,000 | 730,000 | ||||||
Exercised (in shares) | (1,101,000) | (1,643,000) | (710,000) | |||||
Forfeited (in shares) | (600,000) | |||||||
Ending balance (in shares) | 9,611,000 | 10,712,000 | 3,655,000 | 4,235,000 | ||||
Exercisable (in shares) | 950,000 | |||||||
Consultants | ||||||||
Share options activities | ||||||||
Beginning balance (in shares) | 230,000 | 245,000 | 438,000 | |||||
Granted (in shares) | 21,000 | 50,000 | ||||||
Exercised (in shares) | (68,000) | (65,000) | (193,000) | |||||
Ending balance (in shares) | 183,000 | 230,000 | 245,000 | 438,000 | ||||
Exercisable (in shares) | 150,000 | |||||||
Class Z Ordinary Shares | ||||||||
Additional Disclosures | ||||||||
Aggregate number of Ordinary Shares available for future grant under the Global Share Plan and the 2018 Plan | 2,586,218 |
Net Loss per Share (Details)
Net Loss per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss | ¥ (6,808,739) | $ (1,068,441) | ¥ (3,054,017) | ¥ (1,303,570) |
Accretion to redeemable noncontrolling interests | ¥ | (4,292) | |||
Net loss attributable to noncontrolling interests | 19,511 | 3,062 | 46,605 | 14,597 |
Net loss attributable to the Bilibili Inc.'s shareholders | ¥ (6,789,228) | $ (1,065,379) | ¥ (3,011,704) | ¥ (1,288,973) |
Denominator: | ||||
Net loss per share, basic | (per share) | ¥ (17.87) | $ (2.80) | ¥ (8.71) | ¥ (3.99) |
Net loss per share, diluted | (per share) | ¥ (17.87) | $ (2.80) | ¥ (8.71) | ¥ (3.99) |
Share options | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 13,249,083 | 13,249,083 | 8,927,697 | 9,328,721 |
Ordinary Shares | ||||
Denominator: | ||||
Weighted average number of ordinary shares outstanding, basic | 379,898,121 | 379,898,121 | 345,816,023 | 323,161,680 |
Weighted average number of ordinary shares outstanding, diluted | 379,898,121 | 379,898,121 | 345,816,023 | 323,161,680 |
Ordinary Shares | Convertible senior notes (the "April 2026 Notes") due April 2026 [Member] | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 18,706,486 | 18,706,486 | 20,202,000 | 20,202,000 |
Ordinary Shares | Convertible senior notes (the "2027 Notes") due 2027 [Member] | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 19,641,274 | 19,641,274 | 19,641,280 | |
Ordinary Shares | Convertible senior notes (the "December 2026 Notes") due December 2026 [Member] | ||||
Net Loss Per Share | ||||
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 17,027,040 | 17,027,040 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Millions, $ in Millions | 1 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Aggregate purchase commitments | ¥ 800 | $ 125.5 | ||
Unpaid purchase price | ¥ 315 | $ 49.4 |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jul. 31, 2020CNY (¥) | |||
Related Party Transactions | ||||||||
Amount due to related parties | ¥ 216,434 | [1] | $ 33,963 | |||||
Equity method investments purchased consideration payable | ¥ 110,000 | |||||||
Purchases of goods and services | 117,116 | ¥ 35,131 | ¥ 87,597 | |||||
Transfer of/ (acquire of) long-term investments | [2] | (40,837) | (110,039) | 539,646 | ||||
Amount due from related parties | 2,041,316 | 164,732 | $ 320,327 | |||||
Chaodian [Member] | ||||||||
Related Party Transactions | ||||||||
Purchase of noncontrolling interests of Chaodian Inc. ("Chaodian") | [3] | ¥ 257,288 | ||||||
Capital Contribution And Loans To An Entity [Member] | ||||||||
Related Party Transactions | ||||||||
Capital contribution/Loans to an entity ("Entity") | [4] | 2,785,314 | ||||||
Capital Contribution [Member] | ||||||||
Related Party Transactions | ||||||||
Capital contribution/Loans to an entity ("Entity") | ¥ 1,084,300 | |||||||
Loans To An Entity [Member] | ||||||||
Related Party Transactions | ||||||||
Related party transaction interest rate | 3.30% | |||||||
Capital contribution/Loans to an entity ("Entity") | ¥ 1,701,000 | |||||||
Equity Method Investee [Member] | ||||||||
Related Party Transactions | ||||||||
Cost of equity method investments | ¥ 465,800 | |||||||
Consideration on sale of equity method investments | 539,600 | |||||||
Investment income | [2] | ¥ 833 | ¥ 73,884 | |||||
Equity investee [Member] | ||||||||
Related Party Transactions | ||||||||
Related party transaction interest rate | 4.50% | 2.80% | ||||||
Interest-bearing loans and interest expenses | ¥ 279,200 | ¥ 105,600 | ||||||
Amount due from related parties | [5] | 283,492 | 90,497 | |||||
Investment Fund [Member] | ||||||||
Related Party Transactions | ||||||||
Cash contribution to fund | ¥ 220,000 | |||||||
Amount due from related parties | [2] | ¥ 48,135 | ¥ 74,235 | |||||
Entity [Member] | ||||||||
Related Party Transactions | ||||||||
Related party transaction, Description of transaction | The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. | |||||||
Amount due from related parties | [4] | ¥ 1,709,689 | ||||||
[1] | Amount due to related parties as of December 31, 2021 are primarily considerations related to long-term investments, which are non-trade in nature. | |||||||
[2] | In June 2019, to focus the Company’s efforts and resources on its core businesses, the Company transferred several equity investments of the Group to an investment fund. The Group contributed a total of RMB220.0 million cash into this fund as a limited partner, which is accounted for as an equity method investment. The cost of the equity investments transferred was RMB465.8 million. The consideration was RMB539.6 million, which was based on the estimated fair value of the investments. The difference between the consideration and cost of the investments was recognized as investment income. In July 2020, the Company acquired certain equity interests of two investments from the investment fund. The consideration was RMB110.0 million. The balances due from an investment fund as of December 31, 2020 and 2021 were consideration receivables and dividend receivables, which are non-trade in nature. | |||||||
[3] | In September 2020, the Company acquired the rest equity interests of Chaodian from certain noncontrolling shareholders, which included some related parties of the Company. The consideration was determined by referenced to a third-party valuer’s valuation and the considerations were settled in 2020. | |||||||
[4] | The Company established the Entity with an independent third party and two entities controlled by Mr. Rui Chen and Ms. Ni Li, respectively, to acquire the land use rights for a parcel of land in Shanghai for future construction. The Company made capital contribution of RMB1,084.3 million and provided interest-bearing guaranteed loans of RMB 1,701.0 million to the Entity for its operation. The balance as of December 31, 2021 represents interest-bearing loans and interest expenses related to the Entity, which are non-trade in nature. The annual interest rates of the loans were 3.3%. | |||||||
[5] | The balances as of December 31, 2020 and 2021 mainly represent interest-bearing loans and interest expenses of RMB105.6 and RMB279.2 million related to an equity investee, which are non-trade in nature. Interest rates of loans to the investee incurred in 2020 and 2021 were 2.8% and 4.5%, respectively. |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2021Segment | |
Segment Information | |
Number of operating segments | 1 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) ¥ in Billions | 12 Months Ended |
Dec. 31, 2021CNY (¥) | |
Restricted Net Assets | |
Portion of after-tax profit to be allocated to general reserve fund and the statutory surplus fund under PRC law (as a percent) | 10.00% |
Amount of net assets of the Company's PRC subsidiaries and VIEs, not available for distribution | ¥ 3.8 |
Percentage of net assets of the Company's PRC subsidiaries and VIEs, not available for distribution | 17.30% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2021CNY (¥)shares | Jan. 31, 2021CNY (¥) | Sep. 30, 2020CNY (¥)shares | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Additional paid-in capital | ¥ 35,929,961 | $ 5,638,195 | ¥ 14,616,302 | ||||
Chaodian [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 63.60% | ||||||
Consideration transferred | ¥ 744,600 | ||||||
Cash consideration | 250,500 | ||||||
Additional paid-in capital | ¥ 193,300 | ||||||
Percentage of equity interest owned after transactions | 100.00% | ||||||
Chaodian [Member] | Class Z ordinary shares [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Share consideration | shares | 1,731,100 | ||||||
Anime Business [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 8.10% | ||||||
Consideration transferred | ¥ 612,300 | ||||||
Cash consideration | ¥ 369,100 | ¥ 369,124 | |||||
Percentage of equity interest owned after transactions | 100.00% | ||||||
Anime Business [Member] | Class Z ordinary shares [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Share consideration | shares | 400,000 |
Acquisitions (Details)
Acquisitions (Details) ¥ in Thousands, $ in Thousands | Nov. 30, 2021CNY (¥) | Jan. 01, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | Jan. 31, 2021 | Dec. 31, 2019CNY (¥) |
Purchase price allocation | ||||||||
Goodwill | ¥ 2,338,303 | ¥ 1,295,786 | $ 366,931 | ¥ 1,012,026 | ||||
Total purchase price comprised of: | ||||||||
Share consideration | 1,207,980 | $ 189,558 | 889,957 | |||||
Anime Business | ||||||||
Acquisitions | ||||||||
Percentage of equity interest owned after transactions | 100.00% | |||||||
Purchase price allocation | ||||||||
Net assets acquired | 189,763 | |||||||
Goodwill | 283,402 | |||||||
Total | 687,165 | |||||||
Total purchase price comprised of: | ||||||||
Cash consideration | ¥ 369,100 | 369,124 | ||||||
Share consideration | 243,203 | |||||||
Fair value of previously held equity interests | 74,838 | |||||||
Total | 687,165 | |||||||
Anime Business | Brand | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 85,000 | |||||||
Amortization Period | 8 years | 8 years | ||||||
Anime Business | Vendor relationship | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 75,000 | |||||||
Amortization Period | 10 years | 10 years | ||||||
Anime Business | Non-compete clause | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 54,000 | |||||||
Amortization Period | 6 years | 6 years | ||||||
Comics Business | ||||||||
Acquisitions | ||||||||
Percentage of equity interest owned after transactions | 100.00% | |||||||
Purchase price allocation | ||||||||
Net assets acquired | ¥ 48,764 | |||||||
Deferred tax liabilities | (42,133) | |||||||
Goodwill | 281,369 | |||||||
Total | 600,000 | |||||||
Total purchase price comprised of: | ||||||||
Cash consideration | ¥ 600,000 | 600,000 | ||||||
Comics Business | Brand | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 23,000 | |||||||
Amortization Period | 10 years | 10 years | ||||||
Comics Business | User base | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 11,000 | |||||||
Amortization Period | 3 years | 3 years | ||||||
Comics Business | Copyrights | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 269,000 | |||||||
Amortization Period | 8 years | 8 years | ||||||
Comics Business | Technology | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 4,000 | |||||||
Amortization Period | 3 years | 3 years | ||||||
Comics Business | Non-compete clause | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 5,000 | |||||||
Amortization Period | 2 years | 2 years | ||||||
Other acquisitions | ||||||||
Purchase price allocation | ||||||||
Net assets acquired | ¥ 28,320 | 18,495 | ||||||
Noncontrolling interests | (44,064) | |||||||
Deferred tax liabilities | (49,140) | |||||||
Goodwill | 477,746 | 283,760 | ||||||
Total | 754,166 | 413,751 | ||||||
Total purchase price comprised of: | ||||||||
Cash consideration | 244,949 | 295,323 | ||||||
Share consideration | 391,244 | 118,428 | ||||||
Fair value of previously held equity interests | 117,973 | |||||||
Total | 754,166 | 413,751 | ||||||
Other acquisitions | Brand | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 66,000 | |||||||
Amortization Period | 5 years | 5 years | ||||||
Other acquisitions | User base | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 1,500 | 700 | ||||||
Amortization Period | 5 years | 5 years | ||||||
Other acquisitions | Copyrights | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 2,100 | 49,000 | ||||||
Other acquisitions | Copyrights | Minimum | ||||||||
Purchase price allocation | ||||||||
Amortization Period | 3 years | 3 years | ||||||
Other acquisitions | Copyrights | Maximum | ||||||||
Purchase price allocation | ||||||||
Amortization Period | 10 years | 10 years | ||||||
Other acquisitions | Technology | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 3,500 | |||||||
Amortization Period | 5 years | 5 years | ||||||
Other acquisitions | Vendor relationship | ||||||||
Purchase price allocation | ||||||||
Intangible assets | 86,000 | |||||||
Amortization Period | 10 years | 10 years | ||||||
Other acquisitions | On-going projects | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 64,000 | ¥ 69,000 | ||||||
Other acquisitions | On-going projects | Minimum | ||||||||
Purchase price allocation | ||||||||
Amortization Period | 3 years | 3 years | ||||||
Other acquisitions | On-going projects | Maximum | ||||||||
Purchase price allocation | ||||||||
Amortization Period | 4 years 6 months | 4 years 6 months | ||||||
Other acquisitions | Customer relationship | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 83,000 | |||||||
Amortization Period | 5 years | 5 years | ||||||
Other acquisitions | Non-compete clause | ||||||||
Purchase price allocation | ||||||||
Intangible assets | ¥ 28,000 | |||||||
Amortization Period | 6 years | 6 years |
Subsequent Events (Details)
Subsequent Events (Details) ¥ in Millions, shares in Millions, $ in Millions | 1 Months Ended | |||
Mar. 31, 2022USD ($) | Feb. 28, 2022CNY (¥) | Feb. 28, 2022USD ($) | Dec. 31, 2021USD ($)shares | |
Subsequent Event [Line Items] | ||||
Repurchase of principal amount | $ 204 | |||
Consideration transferred | 147.9 | |||
ADR [Member] | ||||
Subsequent Event [Line Items] | ||||
Related Party commitment to purchase entity shares | $ 30 | |||
Purchase of ADS shares | shares | 1.4 | |||
Subsequent Event [Member] | Game Development Company [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash consideration | ¥ 800 | $ 125.5 | ||
Subsequent Event [Member] | ADR [Member] | ||||
Subsequent Event [Line Items] | ||||
Stock repurchase program authorized amount | $ 500 | |||
Stock repurchase program, period in force | 24 months |