Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38482 |
Entity Registrant Name | HUYA Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Building A3,E-Park |
Entity Address, Address Line Two | 280 Hanxi Road |
Entity Address, Address Line Three | Panyu District |
Entity Address, City or Town | Guangzhou |
Entity Address, Postal Zip Code | 511446 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 233,083,369 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001728190 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Firm ID | 1424 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Guangzhou, the People’s Republic of China |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Junhong Huang |
Contact Personnel Email Address | ir@huya.com |
Entity Address, Address Line One | Building A3,E-Park |
Entity Address, Address Line Two | 280 Hanxi Road |
Entity Address, Address Line Three | Panyu District |
Entity Address, City or Town | Guangzhou |
Entity Address, Postal Zip Code | 511446 |
Entity Address, Country | CN |
Country Region | 86 |
City Area Code | 20 |
Local Phone Number | 2290-7888 |
American Depository Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | HUYA |
Security Exchange Name | NYSE |
Class A ordinary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Current assets | ||||
Cash and cash equivalents | ¥ 511,973 | $ 72,110 | ¥ 694,091 | |
Restricted cash | 18,137 | 2,555 | 4,050 | |
Short-term deposits | 6,851,160 | 964,966 | 9,018,298 | |
Short-term investments | 0 | 0 | 3,117 | |
Accounts receivable, net | 64,258 | 9,051 | 84,240 | |
Amounts due from related parties, net | 148,648 | 20,937 | 59,702 | |
Prepayments and other current assets, net | 556,435 | 78,371 | 637,378 | |
Total current assets | 8,150,611 | 1,147,990 | 10,500,876 | |
Non-current assets | ||||
Long-term deposits | 2,553,293 | 359,624 | 1,072,548 | |
Investments | 751,844 | 105,895 | 906,215 | |
Goodwill | 456,976 | 64,364 | 449,357 | |
Property and equipment, net | 326,765 | 46,024 | 200,893 | |
Intangible assets, net | 161,739 | 22,780 | 207,101 | |
Right-of-use assets, net | 379,006 | 53,382 | 345,136 | |
Prepayments and other non-current assets | 144,120 | 20,299 | 110,874 | |
Total non-current assets | 4,773,743 | 672,368 | 3,292,124 | |
Total assets | 12,924,354 | 1,820,358 | 13,793,000 | |
Current liabilities (including amounts of the consolidated variable interest entity and its subsidiaries ("VIEs") without recourse to the Company of RMB992,531 and RMB984,742 as of December 31, 2022 and 2023, respectively) | ||||
Accounts payable | 14,961 | 2,107 | 22,524 | |
Advances from customers and deferred revenue | 412,257 | 58,065 | 446,881 | |
Income taxes payable | 49,914 | 7,030 | 28,924 | |
Accrued liabilities and other current liabilities | 1,474,827 | 207,726 | 1,593,949 | |
Amounts due to related parties | 177,714 | 25,030 | 133,646 | |
Lease liabilities due within one year | 31,832 | 4,483 | 29,801 | |
Total current liabilities | 2,161,505 | 304,441 | 2,255,725 | |
Non-current liabilities (including amounts of the consolidated VIEs without recourse to the Company of RMB89,070 and RMB63,580 as of December 31, 2022 and 2023, respectively) | ||||
Lease liabilities | 48,069 | 6,770 | 8,617 | |
Deferred tax liabilities | 42,317 | 5,960 | 45,913 | |
Deferred revenue | 47,864 | 6,742 | 73,354 | |
Total non-current liabilities | 138,250 | 19,472 | 127,884 | |
Total liabilities | 2,299,755 | 323,913 | 2,383,609 | |
Commitments and contingencies (Note 26) | ||||
Shareholders' equity | ||||
Treasury shares | (206,345) | (29,063) | 0 | |
Additional paid-in capital | 12,000,100 | 1,690,179 | 12,496,534 | |
Statutory reserves | 122,429 | 17,244 | 122,429 | |
Accumulated deficit | (2,052,336) | (289,065) | (1,847,817) | |
Accumulated other comprehensive income | 760,592 | 107,127 | 638,087 | |
Total shareholders' equity | 10,624,599 | 1,496,445 | 11,409,391 | [1] |
Total liabilities and shareholders' equity | 12,924,354 | 1,820,358 | 13,793,000 | |
Class A ordinary shares | ||||
Shareholders' equity | ||||
Ordinary shares | 61 | 9 | 60 | |
Class B ordinary shares | ||||
Shareholders' equity | ||||
Ordinary shares | ¥ 98 | $ 14 | ¥ 98 | |
[1]HUYA Inc. consolidated 2022 statement of changes in shareholders’ equity has been retrospectively adjusted due to the business combination under common control as discussed in Note 2 (d). |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares |
Current liabilities | ¥ 2,161,505 | $ 304,441 | ¥ 2,255,725 | |
Non-current liabilities | ¥ 138,250 | $ 19,472 | ¥ 127,884 | |
Class A ordinary shares | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 | |
Common stock, shares issued | 82,696,852 | 82,696,852 | 89,401,484 | |
Common stock, shares outstanding | 82,696,852 | 82,696,852 | 89,401,484 | |
Class B ordinary shares | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | |
Common stock, shares issued | 150,386,517 | 150,386,517 | 150,386,517 | |
Common stock, shares outstanding | 150,386,517 | 150,386,517 | 150,386,517 | |
VIEs | Nonrecourse | ||||
Current liabilities | ¥ | ¥ 984,742 | ¥ 992,531 | ||
Non-current liabilities | ¥ | ¥ 63,580 | ¥ 89,070 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | [1] | Dec. 31, 2021 CNY (¥) ¥ / shares shares | ||
Net revenues | ||||||
Total net revenues | ¥ 6,994,328 | $ 985,131 | ¥ 9,264,351 | ¥ 11,351,446 | ||
Cost of revenues (1) | (6,179,125) | (870,312) | (8,610,726) | (9,751,160) | ||
Gross profit | 815,203 | 114,819 | 653,625 | 1,600,286 | ||
Operating expenses (1) | ||||||
Research and development expenses | (578,610) | (81,496) | (684,446) | (818,882) | ||
Sales and marketing expenses | (440,605) | (62,058) | (530,482) | (759,507) | ||
General and administrative expenses | (320,838) | (45,189) | (341,243) | (326,772) | ||
Total operating expenses | (1,340,053) | (188,743) | (1,556,171) | (1,905,161) | ||
Other income | 81,258 | 11,445 | 166,307 | 274,704 | ||
Operating loss | (443,592) | (62,479) | (736,239) | (30,171) | ||
Impairment loss of investments | (225,800) | (31,803) | (55,201) | [2] | 0 | |
Interest income and short-term investments income | 479,681 | 67,562 | 298,205 | 247,009 | ||
Gain on fair value change of investment | 0 | 0 | 7,602 | [2] | 44,161 | |
Goodwill impairment | 0 | 0 | (34,640) | [2] | 0 | |
Foreign currency exchange losses, net | (1,593) | (224) | (2,516) | [2] | (1,480) | |
Income (loss) before income tax expenses | (191,304) | (26,944) | (522,789) | 259,519 | ||
Income tax expenses | (13,215) | (1,861) | (24,364) | (55,227) | ||
Income (loss) before share of income (loss) in equity method investments, net of income taxes | (204,519) | (28,805) | (547,153) | 204,292 | ||
Share of income (loss) in equity method investments, net of income taxes | 0 | 0 | (520) | [2] | 379,207 | |
Net income (loss) attributable to HUYA Inc. | (204,519) | (28,805) | (547,673) | 583,499 | ||
Net income (loss) attributable to ordinary shareholders | (204,519) | (28,805) | (547,673) | 583,499 | ||
Net income (loss) | (204,519) | (28,805) | (547,673) | 583,499 | ||
Other comprehensive (loss) income: | ||||||
Foreign currency translation adjustments, net of nil tax | 143,329 | 20,187 | 628,390 | (148,562) | ||
Unrealized securities holding gain (loss), net of tax | (20,824) | (2,933) | 85,997 | 0 | ||
Total comprehensive income (loss) attributable to HUYA Inc. | ¥ (82,014) | $ (11,551) | ¥ 166,714 | ¥ 434,937 | ||
Net income (loss) per share | ||||||
Basic | (per share) | [3] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | ¥ 2.45 | |
Diluted | (per share) | [3] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | ¥ 2.41 | |
Weighted average number of shares used in calculating net income (loss) per share | ||||||
Basic | [3] | 243,025,428 | 243,025,428 | 241,437,842 | 238,198,117 | |
Diluted | [3] | 243,025,428 | 243,025,428 | 241,437,842 | 241,790,445 | |
ADS | ||||||
Net income (loss) per share | ||||||
Basic | (per share) | [3] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | ¥ 2.45 | |
Diluted | (per share) | [3] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | ¥ 2.41 | |
Weighted average number of shares used in calculating net income (loss) per share | ||||||
Basic | [3] | 243,025,428 | 243,025,428 | 241,437,842 | 238,198,117 | |
Diluted | [3] | 243,025,428 | 243,025,428 | 241,437,842 | 241,790,445 | |
Live streaming | ||||||
Net revenues | ||||||
Total net revenues | ¥ 6,450,782 | $ 908,574 | ¥ 8,195,907 | ¥ 10,186,204 | ||
Advertising and others | ||||||
Net revenues | ||||||
Total net revenues | ¥ 543,546 | $ 76,557 | ¥ 1,068,444 | ¥ 1,165,242 | ||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d).[2] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 | ¥ 0 | |
Share-based compensation | ¥ 78,265 | 156,478 | 289,705 | |
Class A ordinary shares | ||||
Number of underlying shares represented by one ADR | 1 | 1 | ||
Cost of revenues | ||||
Share-based compensation | ¥ 16,137 | $ 2,273 | 31,955 | 56,629 |
Research and development expenses | ||||
Share-based compensation | 40,679 | 5,730 | 67,242 | 135,316 |
Sales and marketing expenses | ||||
Share-based compensation | 2,842 | 400 | 4,477 | 8,318 |
General and administrative expenses | ||||
Share-based compensation | ¥ 18,607 | $ 2,621 | ¥ 52,804 | ¥ 89,442 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Common Stock Class A ordinary shares CNY (¥) shares | Common Stock Class B ordinary shares CNY (¥) shares | Treasury shares CNY (¥) shares | Additional paid-in capital CNY (¥) | Statutory reserves CNY (¥) | Accumulated deficit CNY (¥) | Accumulated other comprehensive income (loss) CNY (¥) | Class A ordinary shares shares | Class B ordinary shares shares | CNY (¥) shares | USD ($) shares | ||||
Beginning balance at Dec. 31, 2020 | ¥ 55 | ¥ 100 | ¥ 11,465,575 | ¥ 122,429 | ¥ (1,883,643) | ¥ 72,262 | ¥ 9,776,778 | ||||||||
Beginning balance, shares at Dec. 31, 2020 | shares | 83,490,841 | 152,357,321 | |||||||||||||
Class B ordinary shares converted to Class A ordinary shares | ¥ 1 | ¥ (1) | |||||||||||||
Class B ordinary shares converted to Class A ordinary shares (in shares) | shares | 1,280,804 | (1,280,804) | |||||||||||||
Share-based compensation related to Huya Share-based Awards | 289,705 | 289,705 | |||||||||||||
Issuance of ordinary shares for exercised share options | ¥ 1 | 8,779 | ¥ 8,780 | ||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 533,425 | 533,425 | 533,425 | ||||||||||||
Issuance of ordinary shares for restricted share units | ¥ 1 | ¥ 1 | |||||||||||||
Issuance of ordinary shares for restricted share units, shares | shares | 1,688,694 | ||||||||||||||
Net income (loss) | 583,499 | 583,499 | |||||||||||||
Unrealized securities holding losses | 0 | ||||||||||||||
Foreign currency translation adjustment, net of nil tax | (148,562) | (148,562) | |||||||||||||
Ending balance at Dec. 31, 2021 | ¥ 58 | ¥ 99 | 11,764,059 | 122,429 | (1,300,144) | (76,300) | 10,510,201 | ||||||||
Ending balance, shares at Dec. 31, 2021 | shares | 86,993,764 | 151,076,517 | 86,993,764 | 151,076,517 | |||||||||||
Acquisition of entity under common control | 573,714 | 573,714 | |||||||||||||
Class B ordinary shares converted to Class A ordinary shares | ¥ 1 | ¥ (1) | |||||||||||||
Class B ordinary shares converted to Class A ordinary shares (in shares) | shares | 690,000 | (690,000) | |||||||||||||
Share-based compensation related to Huya Share-based Awards | 156,478 | 156,478 | |||||||||||||
Issuance of ordinary shares for exercised share options | 2,284 | ¥ 2,284 | |||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 133,313 | 133,313 | 133,313 | ||||||||||||
Issuance of ordinary shares for restricted share units | ¥ 1 | (1) | |||||||||||||
Issuance of ordinary shares for restricted share units, shares | shares | 1,584,407 | ||||||||||||||
Net income (loss) | (547,673) | ¥ (547,673) | [1] | ||||||||||||
Unrealized securities holding losses | 85,997 | 85,997 | [1] | ||||||||||||
Foreign currency translation adjustment, net of nil tax | 628,390 | 628,390 | [1] | ||||||||||||
Ending balance at Dec. 31, 2022 | [2] | ¥ 60 | ¥ 98 | 12,496,534 | 122,429 | (1,847,817) | 638,087 | 11,409,391 | |||||||
Ending balance, shares at Dec. 31, 2022 | shares | 89,401,484 | [2] | 150,386,517 | [2] | 89,401,484 | 150,386,517 | |||||||||
Acquisition of entity under common control | (574,826) | (574,826) | |||||||||||||
Share-based compensation related to Huya Share-based Awards | 78,265 | 78,265 | |||||||||||||
Issuance of ordinary shares for exercised share options | 127 | ¥ 127 | |||||||||||||
Issuance of ordinary shares for exercised share options (shares) | shares | 7,000 | 7,000 | 7,000 | ||||||||||||
Issuance of ordinary shares for restricted share units | ¥ 1 | ¥ 1 | |||||||||||||
Issuance of ordinary shares for restricted share units, shares | shares | 2,447,365 | ||||||||||||||
Repurchase of common shares | ¥ (206,345) | (206,345) | |||||||||||||
Repurchase of common shares (in shares) | shares | (9,158,997) | 9,158,997 | |||||||||||||
Net income (loss) | (204,519) | (204,519) | $ (28,805) | ||||||||||||
Unrealized securities holding losses | (20,824) | (20,824) | (2,933) | ||||||||||||
Foreign currency translation adjustment, net of nil tax | 143,329 | 143,329 | 20,187 | ||||||||||||
Ending balance at Dec. 31, 2023 | ¥ 61 | ¥ 98 | ¥ (206,345) | ¥ 12,000,100 | ¥ 122,429 | ¥ (2,052,336) | ¥ 760,592 | ¥ 10,624,599 | $ 1,496,445 | ||||||
Ending balance, shares at Dec. 31, 2023 | shares | 82,696,852 | 150,386,517 | 9,158,997 | 82,696,852 | 150,386,517 | ||||||||||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d).[2]HUYA Inc. consolidated 2022 statement of changes in shareholders’ equity has been retrospectively adjusted due to the business combination under common control as discussed in Note 2 (d). |
Title CONSOLIDATED STATEMENTS O
Title CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||||
Cash flows from operating activities | |||||||
Net income (loss) attributable to HUYA Inc. | ¥ (204,519) | $ (28,805) | ¥ (547,673) | [1] | ¥ 583,499 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||
Depreciation of property and equipment | 46,803 | 6,592 | 43,413 | [1] | 49,875 | ||
Amortization of acquired intangible assets | 54,320 | 7,651 | 58,599 | [1] | 39,239 | ||
Amortization of right-of-use assets | 39,277 | 5,532 | 41,599 | [1] | 35,901 | ||
(Reversal of) allowance for expected credit losses | 13,394 | 1,887 | (107) | [1] | (2,360) | ||
(Loss) gain on disposal of property and equipment and other long-term assets | (594) | (84) | 1,388 | [1] | (1,504) | ||
Share-based compensation | 78,265 | 11,023 | 156,478 | [1] | 289,705 | ||
Share of (income) loss in equity method investments, net of income taxes | 0 | 0 | 520 | [1],[2] | (379,207) | ||
Deferred income tax expenses (benefits) | (4,007) | (564) | 17,500 | [1] | 32,125 | ||
Gain on fair value changes of investments | 0 | 0 | (7,602) | [1],[2] | (44,161) | ||
Impairment loss of investments | 225,800 | 31,803 | 55,201 | [1],[2] | 0 | ||
Impairment of goodwill | 0 | 0 | 34,640 | [1],[2] | 0 | ||
Short-term investments income | 0 | 0 | (2,081) | [1] | (16,331) | ||
Foreign currency exchange losses, net | 1,593 | 224 | 2,516 | [1],[2] | 1,480 | ||
Changes in operating assets and liabilities, net of effects from acquisition: | |||||||
Accounts receivable | 4,706 | 663 | 3,579 | [1] | (16,059) | ||
Prepayments and other assets | 36,277 | 5,110 | 57,747 | [1] | (245,555) | ||
Amounts due from related parties | (88,861) | (12,516) | 88,940 | [1] | (83,847) | ||
Accounts payable | 4,472 | 630 | (3,039) | [1] | 3,839 | ||
Amounts due to related parties | 15,286 | 2,153 | (82,984) | [1] | 120,675 | ||
Advances from customers and deferred revenue | (60,114) | (8,467) | (58,249) | [1] | (85,538) | ||
Lease liabilities | (31,664) | (4,459) | (34,880) | [1] | (38,924) | ||
Accrued liabilities and other current liabilities | (183,505) | (25,847) | (248,848) | [1] | 138,111 | ||
Income tax payable | 20,990 | 2,956 | 22,980 | [1] | (53,510) | ||
Net cash provided by/(used in) operating activities | (32,081) | (4,518) | (400,363) | [1] | 327,453 | ||
Cash flows from investing activities | |||||||
Placements of short-term deposits | (6,064,259) | (854,133) | (8,460,370) | [1] | (7,050,721) | ||
Maturities of short-term deposits | 8,285,719 | 1,167,019 | 8,291,399 | [1] | 4,595,849 | ||
Placements of short-term investments | 0 | 0 | 0 | [1] | (1,950,000) | ||
Maturities of short-term investments | 3,117 | 439 | 815,295 | [1] | 2,350,000 | ||
Placements of long-term deposits | (2,141,404) | (301,610) | (1,086,682) | [1] | 0 | ||
Maturities of long-term deposits | 714,657 | 100,657 | 0 | [1] | 0 | ||
Purchase of property and equipment | (123,207) | (17,353) | (156,350) | [1] | (39,483) | ||
Purchase of intangible assets | (8,084) | (1,139) | (8,425) | [1] | (58,583) | ||
Cash paid for long-term investments | (68,332) | (9,624) | (244,544) | [1] | (284,118) | ||
Cash consideration paid for business combination under common control | (546,084) | (76,914) | 0 | [1] | 0 | ||
Cash received from a disposal of an investment | 0 | 0 | 0 | [1] | 554,889 | ||
Proceeds from disposal of property and equipment | 1,083 | 153 | 1,109 | [1] | 1,847 | ||
Net cash (used in)/provided by investing activities | 53,206 | 7,495 | (848,568) | [1] | (1,880,320) | ||
Cash flows from financing activities | |||||||
Repurchase of common shares | (202,422) | (28,511) | 0 | [1] | 0 | ||
Proceeds from exercise of vested share options | 128 | 18 | 6,049 | [1] | 10,723 | ||
Net cash provided by/(used in) financing activities | (202,294) | (28,493) | 6,049 | [1] | 10,723 | ||
Net decrease in cash and cash equivalents and restricted cash | (181,169) | (25,516) | (1,242,882) | [1] | (1,542,144) | ||
Cash and cash equivalents and restricted cash at the beginning of the year | 698,141 | [1] | 98,331 | 1,846,454 | [1] | 3,458,462 | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 13,138 | 1,850 | 94,569 | [1] | (69,864) | ||
Cash and cash equivalents and restricted cash at the end of the year | 530,110 | 74,665 | 698,141 | [1] | 1,846,454 | [1] | |
Supplemental disclosure of cash flows information: | |||||||
- Unpaid cash consideration for business acquisition | (28,742) | (4,048) | |||||
- Income tax paid (received) | (8,895) | (1,253) | (87,890) | 96,096 | |||
- Unpaid cash consideration for repurchase of treasury shares | (3,923) | (553) | |||||
- Acquisition of property and equipment, included with accrued liabilities and other current liabilities | ¥ 62,357 | $ 8,783 | ¥ 17,787 | ¥ 4,301 | |||
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and principal activities | |
Organization and principal activities | 1. (a) HUYA Inc. (“Huya” or the “Company”, also refer to Huya’s consolidated operating entities, where appropriate) is a holding company incorporated in Cayman Islands on March 30, 2017 and conducts its business through its subsidiaries, a VIE and VIE’s subsidiaries (collectively refer to “VIEs”) (collectively, the “Group”) in the People’s Republic of China (the “PRC”). The Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. The primary theme of the Group’s platforms is game live streaming. The Group has also extended themes to life and entertainment topics beyond games to cater for the Group’s users’ growing entertainment demands. In providing these services, the Group has cooperated with talent agencies in broadcaster recruitment, live streaming training and support, promotion strategies development and content management and discipline under the Group’s guidance and supervision. Company generates majority of its revenue from sales of virtual items in live streaming platforms as well as other services, which substantially consist of sub-licensing, advertising and online game-related services. Before April 3, 2020, the Company was a subsidiary of JOYY Inc. (“JOYY”, refer to JOYY Inc. or JOYY’s consolidated operating entities, where appropriate). On April 3, 2020, JOYY transferred 16,523,819 Class B ordinary shares of Huya to Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited (the “Parent Company” or “Tencent”). Upon the closing of the shares transfer, Tencent’s voting power in Huya increased to more than 50% and became the controlling shareholder of Huya. Pursuant to a definitive share transfer agreement dated April 28, 2023 between JOYY and Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited (“Tencent”), the transfer of 38,374,463 Class B ordinary shares of HUYA Inc. from JOYY to Tencent was closed on May 5, 2023. Immediately after the closing of such share transfer, JOYY does not hold any shares of Huya, and Tencent holds 150,386,517 Class B ordinary shares of Huya, representing 62.7% of the total issued and outstanding ordinary shares and 94.4% of the total voting power of the Company. In December 2023, the Company acquired a 100% equity interest in a global mobile application service provider from a subsidiary of Tencent for an aggregate cash consideration of US$ 81 million (equivalent to RMB 574,826 ) (the “Acquisition”), which is expected to enhance Huya's ability to promote and distribute game applications in international markets, while creating synergies with Nimo TV, the Company's overseas game live streaming platform. This transaction also aligns with Huya's strategic business transformation emphasizing game - related service offerings and relevant commercialization. The Acquisition was a transaction between entities under common control, which, under U.S. GAAP requires the assets and liabilities to be transferred at the historical cost of the entity, with prior periods retrospectively adjusted to furnish comparative information. See Note 4, Business combination under common control, within the Notes to these Consolidated Financial Statements for additional information. (b) The Company completed its IPO in May 2018, issued and sold a total of 17,250,000 American Depositary shares (“ADSs”) for a total consideration of US$176 million after deducting the underwriting discounts and commissions and offering expenses. Upon the completion of the IPO, the Company’s (1) 17,647,058 outstanding Series A-1 Preferred Shares were converted into Class A ordinary shares, (2) 4,411,765 outstanding Series A-2 Preferred Shares were converted into Class B ordinary shares, and (3) 64,488,235 outstanding Series B-2 Preferred Shares were converted into Class B ordinary shares immediately as of the same date. In April 2019, the Company completed a follow-on public offering, issued and sold 13,600,000 ADSs for a total consideration of US$314 million after deducting the underwriting discounts and commissions and offering expenses. JOYY, as a selling shareholder, sold 4,800,000 Huya’s ADSs. These 4,800,000 Class B ordinary shares were converted into Class A ordinary shares automatically. 1. (c) As of December 31, 2023, the Company’s principal subsidiaries and VIE are as follows: Name Place of incorporation Date of incorporation % of direct or indirect economic ownership Principal activities Principal subsidiaries Huya Limited Hong Kong January 4, 2017 100 % Investment holding Guangzhou Huya Technology Co., Ltd. (“Huya Technology”) PRC June 16, 2017 100 % Software development HUYA PTE. LTD. Singapore July 23, 2018 100 % Internet value added services Hainan Huya Entertainment Information Technology Co., Ltd. (“Hainan Huya”) PRC December 4, 2019 100 % Cultural and Creative services VIE Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 100 % Internet value added services (d) VIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders PRC laws and regulations impose restrictions on foreign ownership and investment in internet-based businesses such as distribution of online information, value-added telecommunications services. Huya is a Cayman Islands company and its PRC subsidiary is considered a foreign-invested enterprise. Huya believes the live streaming service offered through its platform constitutes a type of value-added telecommunication service where foreign ownership and investment are restricted; and therefore Huya should operate its platform through contractual arrangements with a variable interest entity and its shareholders to ensure compliance with the relevant PRC laws and regulations. Huya has entered into a series of contractual arrangements, through Huya Technology, with Guangzhou Huya and the shareholders of Guangzhou Huya to obtain a controlling financial interest (pursuant to ASC 810) over Guangzhou Huya and its subsidiaries, through which Huya operates its live streaming business. Huya currently conducts its business through Guangzhou Huya and its subsidiaries based on these contractual arrangements, which allow Huya to: ● exercise effective control over Guangzhou Huya and its subsidiaries; ● receive substantially all of the economic benefits of Guangzhou Huya and its subsidiaries; and ● have an exclusive option to purchase all or part of the equity interests in Guangzhou Huya when and to the extent permitted by PRC law. As a result of these contractual arrangements, Huya Technology is the primary beneficiary of Guangzhou Huya, and Huya treats Guangzhou Huya as the variable interest entity under U.S. GAAP. Huya has consolidated the financial results of Guangzhou Huya and its subsidiaries in Huya’s consolidated financial statements in accordance with U.S. GAAP. Refer to Note 2(b) to the consolidated financial statements for the principles of consolidation. 1. (d) VIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders (continued) As detailed in Note 1(a), Tencent became the controlling shareholder of Huya starting from April 3, 2020. Subsequently, the shareholders of Guangzhou Huya were changed from Guangzhou Huaduo Network Technology Co., Ltd. (“Guangzhou Huaduo”) and Guangzhou Qinlv Investment Consulting Co., Ltd. (“Guangzhou Qinlv”) to Linzhi Tencent Technology Co., Ltd. (“Linzhi Tencent”). Huya Technology, Guangzhou Huya and Linzhi Tencent, the new shareholder of Guangzhou Huya, entered into a series of contractual arrangements on 17 September 2020. Based on management’s assessment, there is no substantial change in the contractual arrangements and Huya Technology continues to be the primary beneficiary of Guangzhou Huya. (i) VIE agreements amongst Huya Technology, Guangzhou Huya, Guangzhou Huaduo and Guangzhou Qinlv The following is a summary of the contractual arrangements entered among Huya Technology, Guangzhou Huya and its shareholders. ● Exclusive Business Cooperation Agreement Huya Technology and Guangzhou Huya entered into exclusive business cooperation agreements under which Guangzhou Huya engages Huya Technology as its exclusive provider of technology support, business support and consulting services. Guangzhou Huya shall pay to Huya Technology service fees, which is determined by Huya Technology at its sole discretion. Huya Technology shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising from the performance of the agreement. During the term of the agreement, Guangzhou Huya shall not accept any consultations and/or services provided by any third party and shall not cooperate with any third party for the provision of identical or similar services without prior consent of Huya Technology. The term of this agreement is ten years and will be extended for ten years automatically after expiration, unless otherwise agreed by both parties in a written agreement. Huya Technology is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huya. ● Exclusive Purchase Option Agreement Under the exclusive purchase option agreement, the shareholders of Guangzhou Huya have granted Huya Technology or its designated representative(s) irrevocably an exclusive option to purchase, to the extent permitted under PRC law, all or part of their equity interests in Guangzhou Huya at the lowest price permitted by the laws of the PRC applicable at the time of exercise. Huya Technology or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Huya Technology’s prior written consent, the shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Guangzhou Huya. The term of this agreement is ten years and may be extended for another ten years at Huya Technology’s sole discretion. Huya Technology is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Guangzhou Huya. ● Equity Pledge Agreement Pursuant to the equity pledge agreement, the shareholders of Guangzhou Huya have pledged all of their equity interests in Guangzhou Huya to Huya Technology to guarantee the performance by Guangzhou Huya and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive purchase option agreement, and powers of attorney. The shareholders shall not transfer or assign the equity interests, the rights and obligations in the equity pledge agreement or create or permit to create any pledges which may have an adverse effect on the rights or benefits of Huya Technology without Huya Technology’s written consent. If Guangzhou Huya and/or its shareholders breach their contractual obligations under those agreements, Huya Technology, as pledgee, will be entitled to sell the pledged equity interests. 1. (d) VIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders (continued) (i) VIE agreements amongst Huya Technology, Guangzhou Huya, Guangzhou Huaduo and Guangzhou Qinlv (continued) ● Power of Attorney Pursuant to the irrevocable power of attorney, Huya Technology is authorized by each of the shareholders as its attorney-in-fact to exercise such shareholders’ rights in Guangzhou Huya, including, without limitation, the power to vote on its behalf on all matters of Guangzhou Huya requiring shareholder approval under PRC laws and regulations and the articles of association of Guangzhou Huya and rights to information relating to all business aspects of Guangzhou Huya. The term of this agreement is ten years and will be automatically extended for one (ii) VIE agreements amongst Huya Technology, Guangzhou Huya and Linzhi Tencent The following is a summary of the currently effective contractual arrangements by and among Huya Technology, Guangzhou Huya and Linzhi Tencent. ● Exclusive Business Cooperation Agreement Under the exclusive business cooperation agreement, Huya Technology has the exclusive right to provide to Guangzhou Huya technology support, business support and consulting services related to Guangzhou Huya’s business, the scope of which is to be determined by Huya Technology from time to time. Huya Technology owns the exclusive intellectual property rights created as a result of the performance of this agreement. The timing and amount of the service fee payments shall be determined at the sole discretion of Huya Technology. The term of this agreement is ten years from the execution date of this agreement and will be automatically extended for another ten years, unless otherwise agreed upon by Huya Technology and Guangzhou Huya. ● Exclusive Option Agreement Under the exclusive option agreement, Linzhi Tencent irrevocably granted Huya Technology or its designated representatives an exclusive option to purchase, to the extent permitted under PRC law, all or part of its equity interests in Guangzhou Huya. Huya Technology or its designated representatives have sole discretion as to when to exercise such options, either in part or in full. Without Huya Technology’s prior written consent, Linzhi Tencent shall not sell, transfer, mortgage or otherwise dispose of its equity interests in Guangzhou Huya. The term of this agreement is ten years and may be extended at Huya Technology’s sole discretion. ● Equity Interest Pledge Agreement Pursuant to the equity interest pledge agreement, Linzhi Tencent, as the shareholder of Guangzhou Huya, pledged all of its equity interests in Guangzhou Huya to Huya Technology to guarantee the performance by Guangzhou Huya and Linzhi Tencent of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement and voting rights proxy agreement. If Guangzhou Huya or Linzhi Tencent breaches their respective contractual obligations under those agreements, Huya Technology, as the pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. This pledge will become effective on the date the pledged equity interests are registered with the competent administration for market regulation and will remain effective until the pledgor is no longer the shareholder of Guangzhou Huya. The pledged equity interests were registered with the competent administration for market regulation on September 21, 2020. 1. (d) VIE agreements amongst Huya Technology, Guangzhou Huya and its shareholders (continued) (ii) VIE agreements amongst Huya Technology, Guangzhou Huya and Linzhi Tencent (continued) ● Shareholder Voting Rights Proxy Agreement Under the voting rights proxy agreement, Linzhi Tencent, as the shareholder of Guangzhou Huya, irrevocably executed a power of attorney and appointed Huya Technology as its attorney-in-fact to exercise such shareholder’s rights in Guangzhou Huya, including, without limitation, the power to vote on its behalf on all matters of Guangzhou Huya requiring shareholder approval under PRC laws and regulations and the articles of association of Guangzhou Huya and rights to information relating to all business aspects of Guangzhou Huya. The term of this agreement is ten years from the execution date of this agreement and will be automatically extended for one Risks in relation to the VIE structure The Business was primarily conducted through Guangzhou Huya ● revoke or refuse to grant or renew the Group’s business and operating licenses; ● restrict or prohibit related party transactions between the wholly owned subsidiary of the Group and the VIE; ● impose fines, confiscate income or other requirements which the Group may find difficult or impossible to comply with; ● require the Group to alter, discontinue or restrict its operations; ● restrict or prohibit the Group’s ability to finance its operations, and; 1. (d) Risks in relation to the VIE structure (continued) ● 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 VIE, which may result in deconsolidation of the VIE in the Group’s consolidated financial statements. In the opinion of management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group’s operations depend on the VIE to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. The management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIE or the shareholders of the VIE fail to perform their obligations under those arrangements. The following table sets forth the financial data for the VIEs on an aggregated basis. For purposes of this presentation, activity within and between the VIEs have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination. Presentation of the comparative data for 2022 and 2023 have been expanded to conform to the current year presentation. Selected Condensed Consolidated Balance Sheets Data for the VIEs As of December 31, 2022 2023 RMB RMB Assets Cash and cash equivalents 14,259 7,730 Restricted cash 4,050 18,137 Short-term deposits 490,000 130,000 Accounts receivable, net 55,305 27,795 Prepayments and other current assets 219,716 232,364 Amounts due from related parties 45,127 147,582 Amounts due from Group companies (1) 1,098,883 954,184 Investments 724,110 600,096 Intangible assets, net 54,660 30,364 Long-term deposits — 360,000 Other assets 12,866 18,604 Total assets 2,718,976 2,526,856 Deferred revenue and advances from customers 502,682 445,888 Accrued liabilities and other current liabilities 504,218 466,890 Amount due to related parties 48,277 103,055 Other liabilities 26,424 32,489 Total liabilities 1,081,601 1,048,322 Total shareholders’ equity 1,637,375 1,478,534 These balances have been reflected in the Group’s consolidated financial statements with intercompany transactions eliminated. 1. (d) Selected Condensed Consolidated Statements of Operation Data for the VIEs For the year ended December 31, 2021 2022 2023 RMB RMB RMB Third-party revenues 10,897,479 8,937,121 6,686,033 Total cost and expenses (2) (10,789,307) (9,161,422) (6,746,390) Others, net 195,202 55,551 (94,625) Income (loss) before income tax expenses 303,374 (168,750) (154,982) Income tax expenses (50,374) (6,801) — Share of loss from equity method investments (37) (520) — Net income (loss) 252,963 (176,071) (154,982) Selected Condensed Consolidated Cash Flows Data for the VIEs For the year ended December 31, 2021 2022 2023 RMB RMB RMB Net cash provided by operating activities (3) 1,176,397 379,397 56,821 Loans and advances to Group companies (911,916) (160,406) — Other investing activities (197,261) (720,237) (49,263) Net cash used in investing activities (1,109,177) (880,643) (49,263) Net cash used in financing activities — — — Note: (1) Inter-company service fees for technology support, business support and consulting fees (collectively defined as “VIE service fees”) are charged pursuant to the exclusive business cooperation agreement. As of December 31, 2021, 2022, and 2023, the outstanding balance of amounts due from Group companies were inter-company advances. There were no outstanding balances for VIE service fees charged to the VIEs. (2) For the years ended December 31, 2021, 2022 and 2023, VIE service fees were charged by the WFOE and other subsidiaries to the VIEs amounting to RMB 8,664 million, RMB 6,863 million and RMB 5,530 million, respectively, which were settled as occurred. (3) For the years ended December 31, 2021, 2022 and 2023, cash paid by the VIEs to the WFOE and other subsidiaries for VIE service fees were RMB 8,664 million, RMB 6,433 million and RMB 5,391 million, respectively. For the years ended December 31, 2021, 2022 and 2023, nil , RMB 415 million and RMB 139 million of the VIE service fees were not settled by cash, but netting against the intercompany receivables from the primary beneficiary of VIE. |
Principal accounting policies
Principal accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Principal accounting policies | |
Principal accounting policies | 2. (a) The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. (b) The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Huya Technology and ultimately the Company hold all the variable interests of the VIE and has been determined to be the primary beneficiary of the VIE. (c) The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, related disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period in the consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of multiple element revenue contracts, the valuation allowance for deferred tax assets and income tax, subsequent adjustment due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, impairment assessment of investments in equity securities without readily determinable fair value, fair value determination for available-for-sale debt investments, impairment assessment of goodwill, valuation of assets acquired and liabilities assumed in acquisition under common control and allowances for credit losses, represent significant accounting policies that reflect significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. 2. (d) (i) Business combination The Group accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 “Business Combinations” (“ASC 805”). Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the business acquired, the difference is recognized directly in the consolidated statements of comprehensive loss as gain on bargain purchase. During the measurement period, which can be up to one year from the acquisition date, the Group may record adjustments to the initially recorded balances of assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of comprehensive loss. (ii) The consolidated financial statements incorporate the financial information of a business that was acquired in 2023 from an entity that controls both the Group as well as the acquired business. Under U.S. GAAP this is considered a business combination under common control and the acquiring company’s (the Group’s) prior year financial statements have been adjusted to reflect the acquisition for all periods during which both entities were under common control (2022 with regard to this transaction). Under U.S. GAAP the acquired assets and assumed liabilities have been consolidated in the Group financial statements at the historical basis of the respective account balances. (e) The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong, Cayman Islands and Singapore is primarily the United States dollar (“US$”), while the functional currency of the Group’s entities in PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive (loss) income in the statement of comprehensive income. 2. (e) Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains (losses), net in the consolidated statement of comprehensive income. (f) Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 =RMB7.0999 on December 29, 2023 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. (g) Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. (h) Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash is substantially a cash balance on deposit required by its commercial banks, the court, and government department. (i) Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. Long-term deposits of the Group represent time deposits placed with banks with original maturities of more than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the years presented. (j) For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. 2. (k) The Group’s accounts receivable, other receivables, amounts due from related parties, prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from third-party payment platforms and advertising customers. The activity in the loss allowance for the years ended December 31, 2022 and 2023 is detailed in Note 8, Note 9 and Note 23. 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 historical experience of loss severity and recoveries, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. Other key factors that influence the expected credit loss analysis include credit rating, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. (l) Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. The Group evaluates its equity method investment for impairment under ASC 323-10. An impairment loss on an equity method investment is recognized in the consolidated statement of comprehensive income when the decline in value is determined to be other-than-temporary. The Group recognized impairment losses of nil, RMB414 and nil for the years ended December 31, 2021,2022 and 2023, respectively. Equity Investments without Readily Determinable Fair Values The Group elected to record equity investments without readily determinable fair values, which are not accounted for using the equity method and do not qualify for the existing practical expedient in ASC 820 to estimate fair value using the net asset value per share (or its equivalent) of the investments and, at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying values of the equity investments in earnings. Changes in the carrying values of the equity investment are made whenever there are impairment or observable price changes in orderly transactions for the identical or similar investment of the same issuer that are known or that can reasonably be known to the Group based on reasonable effort. For equity investments without readily determinable fair value for which the Group has elected to apply the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying judgment in considering various factors and events including a) adverse performance of investees; b) adverse industry developments affecting investees; and c) adverse regulatory social, economic or other developments affecting investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss of investments equal to the difference between the carrying value and fair value. The Group recognized impairment losses of nil, RMB55,201 and RMB210,813 for the year ended December 31, 2021, 2022 and 2023, respectively. Refer to Note 10- Investments for further information. 2. (l) Available-for-sale Debt Investments The Group has classified its investments in debt securities, other than those the held to maturity debt securities, as available-for-sale securities. The Group recorded available-for-sale debt investments at estimated fair values with the aggregate unrealized gains and losses, net of tax, being reflected in “accumulated other comprehensive (loss) income” in the consolidated balance sheets. If the amortized cost basis of an available-for-sale investment exceeds its fair value and if the Group has the intention to sell the investment or it is more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis, an impairment is recognized in the consolidated statements of comprehensive income. If the Group does not have the intention to sell the investment and it is not more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis and the Group determines that the decline in fair value below the amortized cost basis of an available-for-sale investment is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance for credit losses along with the impairment loss of investments in the consolidated statements of comprehensive income. The allowance is measured as the amount by which the debt investment’s amortized cost basis exceeds the Group’s best estimate of the present value of cash flows expected to be collected. The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. (m) Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Property and equipment mainly consist of servers, computers and equipment, leasehold improvements and others. Estimated useful lives Residual rate Servers, computers and equipment 3-4 years 0 % Leasehold improvements Shorter of lease term or the estimated useful lives of the assets 0 % Office furnitures and others 3-5 years 0%-5 % The Company also has certain construction in progress which represents a building under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use. Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of comprehensive income. 2. (n) Intangible assets mainly consist of copyrights of video content, license, software, domain names, trademarks, platform content and technology. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. As of December 31, 2022 and 2023, there are no indefinite lived intangibles. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Copyrights of video content 1 – 4 years License 15 years Software 1 – 10 years Domain names 15 years Trademarks 5-11 years Platform content 7 years Technology 4 years (o) Impairment of goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized. The Group conducts a goodwill impairment test at the reporting unit level annually in the fourth quarter, or more frequently when events or circumstances occur indicating that the recorded goodwill might be impaired. The Group first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Group decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value (determined using the income approach) of each reporting unit with its carrying amount. An impairment charge will recorded for the amount by which the carrying amount of the reporting unit exceeds its fair value up to a maximum amount of the goodwill balance for the reporting unit. 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 judgment in estimating the fair value of reporting units includes estimating future cash flows. The estimated cash flow projections were based on management’s estimates which include significant judgments and assumptions relating to revenue growth rates, the terminal growth rate, and the discount rate. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. The Group determined there are two reporting units as of December 31, 2023. One reporting unit relates to the live streaming business, and the other reporting unit relates to the recently acquired global mobile application service provider (the only reporting unit with a goodwill balance). RMB34,640 and nil of impairment loss of goodwill was recognized for the years ended December 31, 2022 and 2023, respectively. Refer to Note 11- Goodwill for further information. 2. (p) For long-lived assets other than investments whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset grouping may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the asset grouping. Any impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2021, 2022 and 2023. (q) Under ASC 606, revenue is recognized when a customer obtains control of promised goods (i.e. virtual items) 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 following table disaggregates the Group’s revenue by major type for the years ended December 31, 2021, 2022 and 2023: For the year ended December 31, 2021 2022 2023 RMB RMB RMB Live streaming 10,186,204 8,195,907 6,450,782 Advertising and others (i) 1,165,242 1,068,444 543,546 Total 11,351,446 9,264,351 6,994,328 (i) Advertising and others mainly include advertising, sub-licensing and online games revenues. Revenue recognition and significant judgments (i) Live streaming The Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. It generates revenue primarily from sales of virtual items in the platforms. The Group has a recharge system for users to purchase the Group’s virtual currency, which can then be utilised to purchase virtual items for use on the live streaming platforms. Users can recharge via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable and without expiry. As the virtual currency is often consumed soon after it is purchased based on history of turnover of the virtual currency, the Group considers it does not expect to be entitled to a breakage amount for the virtual currency. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below unless otherwise stated. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with broadcasters and talent agencies which recruit and manage broadcasters in accordance with their revenue sharing arrangements. 2. (q) Revenue recognition and significant judgments (continued) (i) Live streaming (continued) The Group evaluates and determines that it is the principal and views users to be its customers in the revenue generating arrangement and the Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid/payable to broadcasters and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined standalone selling price. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use, while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to broadcasters to show support for their favorite broadcasters, or purchase time-based virtual items for one or multiple months at a monthly fee, which provide users with recognized status, such as priority speaking rights or special user symbols over a period of time. Revenue related to each consumable item is recognized as single performance obligation at the point in time when the virtual item is transferred directly to the users and consumed by them, while revenue related to time-based virtual items provided on a subscription basis is recognized ratably over the contract period. The Group does not have any further performance obligations to the user after the virtual items are consumed or after the stated contract period of time for time-based items. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as Huya Noble Member Program. Determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The contract of Huya Noble Member Program, which is normally purchased on a monthly basis, includes three major virtual items, a) the noble member status, b) the virtual currency coupons, and c) the right of subsequent renewal at a discounted price, which are considered distinct and accounted for separately under ASC 606. A noble member status itself cannot be purchased on a standalone basis, and it is used for one month but the users can simultaneously purchase multiple months of the package (with effective period of noble member status limited to a maximum of 24 months from date of purchase) at any point in time. The virtual currency coupons, which have the same purchase power as the Group’s virtual currency but with expiry dates, is valid to purchase virtual items for a fixed period. Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. For instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, such as the noble member status and the virtual currency coupons, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. In respect of the right of subsequent renewal at a discounted price, the Group estimates individual user’s times of renewal based on historical data of users’ spending pattern and average times of renewal. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue allocated to noble member status, it’s generally recognized ratably over the contract period as users simultaneously consume and receive a series of services, virtual items and virtual rights. For revenue related to virtual currency coupons provided on a consumption basis, virtual currency coupons used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed above unless otherwise stated. Although the virtual currency coupons have expiry dates, the Group considers the impact of the breakage amount for virtual currency coupons is insignificant as historical data shows that virtual currency coupons are consumed shortly after they are released to users and the forfeiture rate remains relatively low for the periods reported, therefore, the Group does not expect to be entitled to a breakage amount for the virtual currency coupons. For the right of subsequent renewal at a discounted price, upon each time a subsequent renewal is purchased, the cash received is recorded as deferred revenue and allocated proportionally to the noble member status and virtual currency coupons based on their relative standalone selling price and revenue is then recognized following the revenue recognition method of noble member status and virtual currency coupons as described above. 2. (q) Revenue recognition and significant judgments (continued) (ii) Advertising The Group generates advertising revenues primarily from sales of various forms of advertising and promotion campaigns, including (i) display advertisements in various areas of our platform, (ii) native advertisements in cooperation with broadcasters, and (iii) game events advertising and campaigns. Advertisements on the Group’s platforms are generally charged on the basis of duration. Advertising contracts are signed to establish the fixed price and the advertising services to be provided. Where the service is transferred to customers, revenues from advertising contracts are recognized ratably over the contract period of display. The Group enters into advertising contracts directly with advertisers or third-party advertising agencies that represent advertisers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 3 months. Both third-party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. In instances where the timing of revenue recognition differs from the timing of billing, the Group has determined the advertising contracts generally do not include a significant financing component. The primary purpose of the credits terms is to provide customers with simplified and predictable ways of purchasing the Group’s advertising services, not to receive financing from its customers or to provide customers with financing. The Group provides sales incentives to certain customers in the forms of discounts and rebates based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. The Group believes that there will not be significant changes to its estimates of variable consideration. (iii) Online games revenues The Group generates revenues from offering virtual items in online games developed by the Group itself or third parties to game users. The Group has a recharge system for game users to purchase game tokens for use. Game users can recharge via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Game tokens is non-refundable and without expiry. As the game token is often consumed soon after it is purchased based on history of turnover of the game token, the Group considers it does not expect to be entitled to a breakage amount for the game token. Majority of online games revenues were derived from the Group’s self-developed games for |
Certain risks
Certain risks | 12 Months Ended |
Dec. 31, 2023 | |
Certain risks | |
Certain risks | 3. (a) Foreign exchange risk The revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. (b) Credit risk The Group’s financial instruments potentially subject to significant concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term deposits, short-term investment, long-term deposits and accounts receivable. As of December 31, 2022 and 2023, substantially all of the Group’s cash and cash equivalents, restricted cash, short-term deposits, short-term investment and long-term deposits were placed with the PRC financial institutions and international financial institutions. Management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutions’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. Nevertheless under the PRC law, it is required that a commercial bank in the PRC that holds third party cash deposits should maintain a certain percentage of total customer deposits taken in a statutory reserve fund for protecting the depositors’ rights over their interests in deposited money. PRC banks are subject to a series of risk control regulatory standards; PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. The Group believes that it is not exposed to unusual risks as these financial institutions are either PRC banks or international banks with high credit quality. The Group has not experienced any losses on its deposits of cash and cash equivalents and term deposits for the years ended December 31, 2021, 2022 and 2023 and believes that its credit risk to be minimal. Accounts receivable is typically unsecured and is primarily derived from revenue earned from payment platforms, advertising services, distribution platforms and livestreaming platforms from third parties. |
Business combination under comm
Business combination under common control | 12 Months Ended |
Dec. 31, 2023 | |
Business combination under common control | |
Business combination under common control | 4. Business combination under common control Acquisition of a global mobile application service provider (i) The acquisition in January 2022 On January 20, 2022, a wholly-owned subsidiary of Tencent consummated the acquisition of 100% equity interest of a global mobile application service provider (the “acquiree”). The acquiree provides mobile application services in the international markets. The amount of excess of the purchase price over the fair value of the identifiable assets and liabilities acquired is recorded as goodwill. The transaction consideration was allocated based on the fair value of the identifiable assets acquired and liabilities at the acquisition date as summarized as follows: January 20, 2022 Identifiable intangible assets acquired: - Platform content 113,468 - Trademark 35,060 - Technology 7,650 Deferred tax liabilities (26,550) Goodwill (Note 11) 444,086 Total cash consideration* 573,714 *The global mobile application service provider was acquired at a consideration of US$90 million (equivalent to RMB573,714) in cash. Significant estimates and judgments were applied in determining the fair value of the acquired assets with assistance of an independent valuation firm. The Company estimated the fair value of the acquired platform content using the excess earnings method, which involved the use of estimates and assumptions related to discount rate and attrition rate. In terms of the fair value of the acquired trademark, the relief from royalty method was used, which involved the use of estimates and assumptions related to revenue growth rate, royalty rate and discount rate. Pro-forma results related to the acquisition in accordance ASC 805 have not been presented because the contribution of net revenue and net income of the acquiree is less than 1% of the Company’s consolidated net revenue and net income for the year ended December 31, 2021. (ii) Huya’s acquisition of the acquiree from Tencent in December 2023 In December 22, 2023 (the “Acquisition date”), Huya acquired 100% equity interest in the acquiree from a wholly-owned subsidiary of Tencent for an aggregate cash consideration of US$81 million (equivallent to RMB574,826). Since the acquiree and Huya are under common control of Tencent, the Acquisition has been accounted for as business combination under common control in accordance with ASC 805, Business Combinations The financial information of the acquiree for the year of 2023 and comparative period: a. Revenue and net loss of the acquiree for the year ended December 31, 2023 and for the period from January 20, 2022 to December 31, 2022 are as follows: For the period from For the year ended January 20, 2022 to December 31, 2023 December 31, 2022 Revenue 61,431 43,889 Net loss (4,551) (61,017) 4. Business combination under common control (continued) b. The carrying amounts of assets including goodwill, liabilities and equity of the acquiree at the Acquisition date and December 31, 2022 are as follows: Acquisition date December 31, 2022 Total assets 611,533 645,993 Total liabilities (38,848) (79,974) Net assets 572,685 566,019 The assets and liabilities of the acquiree have also been retrospectively reflected in Huya's consolidated financial statements at Tencent's historical cost. As detailed above, Huya’s consolidated statements of changes in shareholders’ equity have been retrospectively adjusted due to this business combination under common control. RMB573,714 was recorded in additional paid-in capital for the year ended December 31, 2022, which represents the net assets of the acquiree on January 20, 2022. RMB574,826 was debited in additional paid-in capital for the year ended December 31, 2023, which represents the cash considereation of Huya’s acquisition from Tencent on December 22, 2023. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents | |
Cash and cash equivalents | 5. Cash and cash equivalents Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, and all highly liquid investments with maturities of three months or less. Cash and cash equivalents balance as of December 31, 2022 and 2023 primarily consist of the following currencies: December 31, 2022 December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB 246,786 246,786 220,876 220,876 US$ 52,954 368,802 35,957 254,669 SGD 15,026 77,877 6,658 35,802 Others (i) N/A 626 N/A 626 Total 694,091 511,973 (i) As of December 31, 2022 and 2023, the other currencies consist of Hong Kong Dollar, Euro and Japanese Yen. |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2023 | |
Restricted cash | |
Restricted cash | 6. Restricted cash The Group’s restricted cash represents substantially cash balances on deposit required by its commercial banks, the court (due to lawsuits) and the government. As of December 31, 2022 and 2023, the Group’s restricted cash balances were RMB4,050 and RMB18,137, respectively. |
Short-term deposits and long-te
Short-term deposits and long-term deposits | 12 Months Ended |
Dec. 31, 2023 | |
Short-term deposits and long-term deposits | |
Short-term deposits and long-term deposits | 7. Short-term deposits represent time deposits placed with banks with original maturities more than three months but less than one year. Short-term deposits balance as of December 31, 2022 and 2023 primarily consist of the following currencies: December 31, 2022 December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB 3,676,450 3,676,450 1,185,000 1,185,000 US$ 767,000 5,341,848 800,000 5,666,160 Total 9,018,298 6,851,160 7. Short-term deposits and long-term deposits (continued) Long-term deposits are mainly deposits in commercial banks with maturities of greater than one year and wealth management products issued by commercial banks for which the Group has the positive intent and ability to hold those deposits to maturity with maturities of greater than one year. Long-term deposits balance as of December 31, 2022 and 2023 primarily consist of the following currencies: December 31, 2022 December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB — — 2,100,000 2,100,000 US$ 154,000 1,072,548 64,000 453,293 Total 1,072,548 2,553,293 |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net | |
Accounts receivable, net | 8. December 31, 2022 2023 RMB RMB Accounts receivable, gross 86,543 79,975 Less: credit loss provision (2,303) (15,717) Accounts receivable, net 84,240 64,258 The following table sets out movements of the credit loss provision for the years ended December 31, 2021, 2022 and 2023: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year (4,449) (2,296) (2,303) Current year provision (715) (993) (13,888) Current year reversal 2,868 986 474 Balance at end of the year (2,296) (2,303) (15,717) |
Prepayments and other current a
Prepayments and other current assets, net | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other current assets, net | |
Prepayments and other current assets, net | 9. December 31, 2022 2023 RMB RMB Input value-added tax to be deducted 258,650 241,682 Interest receivable 174,333 198,531 Prepayments to vendors and content providers 154,207 94,980 Others 50,188 21,307 Less: credit loss provision — (65) Total 637,378 556,435 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments. | |
Investments | 10. December 31, 2022 2023 RMB RMB Equity investments without readily determinable fair values (i) 522,139 323,332 Debt investments (ii) 384,076 428,512 906,215 751,844 (i) Equity investments without readily determinable fair values include investment in equity securities of private investee companies over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock. In 2022 and 2023, the Group acquired equity interests in a number of privately-held investee companies for a total consideration of RMB118,801 and RMB68,332 respectively. In 2023, RMB68,000 was reclassified to an available-for-sale debt investment due to the amendment of shareholder agreement which changed the character of investment to a debt investment The Group used the measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. Based on ASU 2016-01, entities that elect the measurement alternative will report changes in the carrying value of the equity investments in current earnings. If the measurement alternative is used, changes in the carrying value of the equity investment will be recognized whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer, and impairment charges will be recorded when any impairment indicators are noted and the fair value is lower than the carrying value. The Group, with the assistance of an independent valuation expert, assessed for impairment of certain investments as of the balance sheet date and recognized RMB55,201 and RMB210,813 in impairment charges for equity investments without readily determinable fair value for the years ended December 31, 2022 and 2023. The Group’s impairment assessments were triggered as a result of the weak financial performance of certain investees. In the circumstances and as part of management’s assessments, the Group, used unobservable Level 3 inputs including (i) a selection of price-to-sales multiples of comparable companies and multiples, (ii) probability of the different scenarios assumed under the equity allocation model and (iii) a discount for lack of marketability, and with reference to comparable recent transactions (if available) determined , respective fair values for the investees were lower than the related carrying values. (ii) In 2022, the Group made an investment in debt securities (i.e. certain preferred shares) in a privately-held investee company at a total cash consideration of RMB125,743. In 2023, debt investments increased to RMB80,247, of which RMB68,000 was related to a reclassification from equity investments without readily determinable fair values due to a change in contract terms relating to redemption rights which fundamentally altered the character of the investment. Given that those preferred stocks will become redeemable simply by the passage of time and the intention of the Group is to hold and consider a future disposal, the investments are accounted for as available-for-sale debt investments (see Note 2(l)), wherein the investments are carried at fair value with realized or unrealized gains or losses recorded in accumulative other comprehensive income (loss). For the year ended December 31, 2023, considering the prolonged business performance of these investments, the quality of the investments’ credit and other adverse conditions, the Company performed a quantitative assessment with the assistance of an independent appraiser. Based on the assessment, the Company recognized a credit impairment in the aggregated amount of RMB14,987 which was reported in net income, and the fair value change associated with the non-credit losses amounted to RMB20,824, which was reported in other comprehensive income (loss). |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Goodwill | 11. Goodwill Goodwill, which is not tax deductible, represents the expected synergy effects of the business combination from the global mobile application service provider. The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2023 were as follows: December 31, 2022 2023 RMB RMB Balance at the beginning of the year — 449,357 Goodwill arising from the acquisition during the year(Note 4) 444,086 — Impairment (34,640) — Foreign currency translation adjustments 39,911 7,619 Balance at the end of the year 449,357 456,976 During 2023, the Group performed a qualitative and quantitative impairment assessment for the goodwill arising from the acquisition of a global mobile application service provider in 2023. The Group estimated the fair value of the acquiree based on the income approach, using a discounted cash flow model, with a cashflow forecast reflecting Group’s best estimate at that time of the future financial performance of the business. Certain key assumptions used in the impairment assessment related to the revenue growth rate, the discount rate and the terminal growth rate, and they were determined by considering the historical performance of the acquiree, internal forecasts, relevant industry forecasts and market developments. These factors, particularly the revenue growth rate, are subject to a high degree of judgment and complexity, and are highly sensitive. Because of the lack of operating history and expected rapid growth of the acquiree, the Company supplemented its income approach method with the use of a market-based method which considers EBITDA multiples based on market data of comparable companies engaged in similar operations and economic characteristics. Based on the results using both approaches, the fair value of the acquiree was determined to exceed its carrying value as of December 31, 2023. Therefore, the Group concluded that there was no impairment of goodwill as of December 31, 2023. In reaching this determination, the Group gave due consideration to its market capitalization when compared with its consolidated net book value. Given the adverse change in the operating and financial performance of the acquiree, management determined that a quantitative assessment was required as of December 31, 2022. Management estimated the fair value by using the income approach, which considered a number of factors, including revenue growth rate, discount rate and terminal growth rate. These factors are subject to a high degree of judgment and subjectivity. Based on the quantitative assessment results, the fair value of the acquiree was below its carrying amount as of December 31, 2022. Therefore, an impairment charge of RMB34.6 million was recorded for the year ended December 31, 2022, reflecting the amount by which the acquiree’s net book value exceeded its fair value, as determined. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment, net | |
Property and equipment, net | 12. Property and equipment consists of the following: December 31, 2022 2023 RMB RMB Gross carrying amount Servers, computers and equipment 271,692 284,157 Construction in progress 97,786 248,788 Leasehold improvements 32,913 32,387 Others 13,700 12,045 Total 416,091 577,377 Less: accumulated depreciation Servers, computers and equipment (181,706) (210,557) Construction in progress (24,957) (30,536) Others (8,535) (9,519) Total (215,198) (250,612) Property and equipment, net 200,893 326,765 Depreciation expense for the years ended December 31, 2021, 2022 and 2023 were RMB49,875, RMB43,413 and RMB46,803, respectively. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets, net | |
Intangible assets, net | 13. The following table summarizes the Group’s intangible assets: December 31, 2022 2023 RMB RMB Gross carrying amount Platform content 123,970 126,072 Trademark 39,436 38,955 License 32,000 32,000 Licensed copyrights of video content 136,130 31,133 Technology and domain name 13,641 13,618 Software 31,246 9,665 Total of gross carrying amount 376,423 251,443 Less: accumulated amortization Platform content (16,234) (34,520) Trademark (4,324) (6,787) License (9,956) (12,089) Licensed copyrights of video content (110,182) (25,380) Technology and domain name (4,715) (7,051) Software (23,911) (3,877) Total accumulated amortization (169,322) (89,704) Intangible assets, net 207,101 161,739 13. Intangible assets, net (continued) Amortization expense for the years ended December 31, 2021, 2022 and 2023 were RMB39,239, RMB58,599 and RMB54,320, respectively. As of December 31, 2023, intangible assets amortization expense for future years is expected to be as follows: Amortization expense Year ended December 31, of intangible assets RMB 2024 34,736 2025 27,602 2026 24,485 2027 24,276 2028 24,276 |
Prepayments and other non-curre
Prepayments and other non-current assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other non-current assets | |
Prepayments and other non-current assets | 14. December 31, 2022 2023 RMB RMB Interest receivables 10,532 78,440 Prepayments to vendors and content providers 84,241 58,023 Refundable lease deposits 7,788 6,895 Others 8,313 762 Total 110,874 144,120 |
Advances from customers and def
Advances from customers and deferred revenue | 12 Months Ended |
Dec. 31, 2023 | |
Advances from customers and deferred revenue | |
Advances from customers and deferred revenue | 15. December 31, 2022 2023 RMB RMB Deferred revenue, current 421,062 394,120 Advances from customers 25,819 18,137 Total current advances from customers and deferred revenue 446,881 412,257 Deferred revenue, non-current 73,354 47,864 Total non-current deferred revenue 73,354 47,864 |
Accrued liabilities and other c
Accrued liabilities and other current liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued liabilities and other current liabilities | |
Accrued liabilities and other current liabilities | 16. December 31, 2022 2023 RMB RMB Revenue sharing fees 928,756 810,718 Salaries and welfare 156,152 172,498 Marketing and promotion expenses 110,159 107,709 Bandwidth costs 120,849 87,818 License fees and content cost 122,033 86,662 Payable for construction in progress 11,981 61,016 Other taxes payable 25,044 32,154 Deposits from content providers, suppliers and advertising customers 35,967 18,867 Others 83,008 97,385 Total 1,593,949 1,474,827 |
Cost of revenues
Cost of revenues | 12 Months Ended |
Dec. 31, 2023 | |
Cost of revenues | |
Cost of revenues | 17. For the year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue sharing fees and content costs 8,374,555 7,535,690 5,378,413 Bandwidth costs 713,672 537,921 360,660 Salaries and welfare 322,604 288,141 241,243 Payment handling costs 151,913 100,367 64,665 Share-based compensation 56,629 31,955 16,137 Others 131,787 116,652 118,007 Total 9,751,160 8,610,726 6,179,125 |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2023 | |
Other income | |
Other Income | 18. Other income is primarily comprised of gains recognized for government grants which represent cash subsidies received from the PRC government. For the years ended December 31, 2021, 2022 and 2023, the Company recognized government grants as other income amounting to RMB191,723 and RMB148,467 and RMB41,551, respectively. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2023 | |
Taxation | |
Taxation | 19. (a) The Group is subject to value-added tax (“VAT”) and related surcharges on the revenues earned for services provided in the PRC. Net revenues are presented after netting off the VAT. The primary applicable rate of VAT is 6% for the years ended December 31, 2021, 2022 and 2023. All entities in PRC are also subject to surcharges on value-added tax payments in accordance with PRC law. 19. (b) (i) Cayman Islands Under the current tax laws of Cayman Islands, the Company and its subsidiaries are not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) 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. For the years ended December 31, 2021, 2022 and 2023, 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. (iii) Singapore The income tax provision of the Group in respect of its international operations was calculated at the tax rate of 17% on the assessable profits based on the existing legislation, interpretations and practices in respect thereof. (iv) PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The Group’s PRC entities are subject to a uniform income tax rate of 25% for years presented. Certified High and New Technology Enterprises (“HNTE”) are entitled to a preferential tax rate of 15%, but need to re-apply every three years. During this three-year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification as an HNTE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year, and must instead use the regular 25% EIT rate. Qualified software enterprises (“Software Enterprise”) are exempt from EIT for two years, followed by a 50% reduction in the applicable tax rates for the next three years, commencing from the first profit making year. An entity that qualifies as a “Key National Software Enterprise” (a “KNSE”) is entitled to a further reduced preferential income tax rate of 10%. Entities must perform a self-assessment each year to ensure they meet the criteria for qualification, pursuant to SAT Public Notice 2018 No.23 (“Circular 23”). If a KNSE fails to meet the criteria for qualification as a KNSE in any year, the entity cannot enjoy the 10% preferential tax rate in that year. The KNSE status is subject to review by the relevant authorities every year and the timing of the annual review and notification by the relevant authorities may vary from year to year. An entity registered in Hainan Free Trade Port (“FTP”) and operating substantially that qualifies as an “Encouraged Industrial Enterprises” (an “EIE”) is entitled to a preferential income tax rate of 15% for five years since January 1, 2020. Entities must perform a self-assessment each year to ensure they meet the criteria for qualification, pursuant to SAT Public Notice 2020 No.31 (“Circular 31”). According to Hainan Provincial Tax Bureau Public Notice 2021 No.1 (“Circular 1”), enterprises set up in Hainan FTP without any branches outside shall have substantive operations in Hainan FTP, which means that such enterprises shall maintain actual business operation, human resources, finance management as well as assets solely in Hainan FTP in order to enjoy the preferential tax rate. If an EIE fails to meet the criteria for qualification as an EIE or requirement of substantive VIE operations in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year and must instead use the regular 25% EIT rate. 19. (b) (iv) The Group’s PRC entities provided for enterprise income tax are as follows: ● Huya Technology applied an EIT rate of 12.5% ( 50% reduction in the standard statutory rate) as a Software Enterprise for the taxation year of 2021 and applied an EIT rate of 15% as an HNTE for the taxation years of 2022 and 2023. ● Guangzhou Huya renewed its HNTE qualification in 2021 and with a continued preferential income tax rate of 15% from 2021 to 2023. The entity will apply for continued HNTE qualification in 2024. ● Hainan Huya was qualified as an EIE in Hainan free trade port, and enjoyed the preferential tax rate of 15% for five years starting from 2020. ● Most of the remaining PRC subsidiaries and VIEs were subject to 25% EIT for the years presented. According to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in March 26 (“Super Deduction”), the additional tax deduction amount for qualified research and development expenses was increased from 75% to 100%, effective from 2023. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its entities registered outside of the PRC should be considered as resident enterprises for the PRC tax purposes. 19. (b) (iv) The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between the mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the immediate holding company in Hong Kong is the beneficial owner of the FIE and owns directly at least 25% of the shares of the FIE). In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and withholding taxes should be accrued accordingly. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends will be re-invested and the remittance of the dividends will be postponed indefinitely. Aggregate undistributed earnings and reserves of the Group entities located in the PRC that are available for distribution to the Company as of December 31, 2022 and 2023 are approximately RMB2,858,529 and RMB2,530,069, respectively. The undistributed earnings and reserves of the Group entities located in the PRC are considered to be indefinitely reinvested, because the Group does not have any present plan to pay any cash dividends from the undistributed earnings or reserves of the Group entities located in the PRC on its ordinary shares in the foreseeable future and intends to retain its available funds and any future earnings for use in the operation and expansion of its business. Accordingly, no deferred tax liability on 10% WHT of aggregate undistributed earnings and reserves of the Company’s entities located in the PRC had been accrued that would be payable upon the distribution of those amounts to the Company as of December 31, 2023. Composition of income tax expenses Income (loss) before income tax expenses for the years ended December 31, 2021, 2022 and 2023 were taxed within the following jurisdictions: For the year ended December 31, 2021 2022 2023 RMB RMB RMB PRC entities 360,160 (492,143) (406,503) Non-PRC entities (100,641) (30,646) 215,199 Total 259,519 (522,789) (191,304) 19. (b) Composition of income tax expenses (Continued) The current and deferred portion of income tax expenses included in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 are as follows: For the year ended December 31, 2021 2022 2023 RMB RMB RMB Income tax expenses applicable to China operations Current income tax expenses 16,046 — — Deferred income tax expenses 28,119 19,987 — Subtotal income tax expenses applicable to China operations 44,165 19,987 — Income tax expenses applicable to Non-PRC operations Current income tax expenses 7,056 6,864 17,222 Deferred income tax expenses/(benefits) 4,006 (2,487) (4,007) Subtotal income tax expenses applicable to Non-PRC operations 11,062 4,377 13,215 Total income tax expenses 55,227 24,364 13,215 Reconciliation of the differences between statutory tax rate and the effective tax rate The reconciliation between the statutory income tax rate and the effective tax rate is as follows: For the year ended December 31, 2021 2022 2023 PRC Statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of tax holiday and preferential tax benefits (15.6) % (8.4) % (19.1) % Effect of varying tax rates available in different jurisdictions (i) (0.7) % 2.0 % 22.8 % Permanent differences (ii) 19.0 % (6.3) % (10.3) % Change in valuation allowance 10.7 % (27.8) % (58.7) % Effect of Super Deduction available to the Group (17.1) % 10.8 % 33.4 % Effective income tax rate 21.3 % (4.7) % (6.9) % Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) (0.11) 0.28 0.28 (i) For the years ended December 31, 2021, 2022 and 2023, the effect of varying tax rates in different jurisdictions is mainly driven by the interest income derived from short-term deposits and long-term deposits which are subject to an income tax rate of 0% under the tax laws of Cayman Islands, partially offset by the losses arising from overseas business which is subject to an income tax rate of 17% under the tax laws of Singapore. (ii) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. 19. (b) Deferred tax assets and liabilities Deferred taxes are measured using the enacted tax rates for the years in which they are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2022 and 2023 are as follows: December 31, 2022 2023 RMB RMB Tax loss carried forwards 296,987 387,083 Impairment loss of investments 7,271 29,570 Unrealized profit arising from elimination of inter-company transactions 5,424 6,326 Deferred revenue 2,408 2,302 Others 4,379 3,428 316,469 428,709 Less: Valuation allowance (i) (316,469) (428,709) Total deferred tax assets — — Deferred tax liabilities Identifiable intangible assets arising from the Acquisition (25,380) (21,784) Unrealized gains on investments (20,533) (20,533) Total deferred tax liabilities (45,913) (42,317) Net deferred tax liabilities (45,913) (42,317) (i) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowances as of December 31, 2022 and 2023 were provided for net operating loss carry forwards, because such deferred tax assets are not more likely than not to be realized based on the Group’s estimate of the future taxable income to be derived by the subsidiaries. If events including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry forwards; and (iii) tax planning strategies occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. Movement of valuation allowance For the year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year 143,431 171,236 316,469 Additions 42,252 146,749 114,815 Reversals/write-off (14,447) (1,516) (2,575) Balance at end of the year 171,236 316,469 428,709 19. (b) Tax loss carry forwards As of December 31, 2023, total tax losses carried forward of the Company’s subsidiaries and VIEs in the PRC amounted to RMB1,418,278, which were expected to expire if not utilized between 2023 and 2032. The accumulated tax losses of a subsidiary incorporated in Singapore of RMB919,443 subject to the agreement of the relevant tax authorities, is allowed to be carried forward to offset against future taxable profits. Such carried forward tax losses in Singapore have no time limit. In accordance with Singapore Tax Administration Law, the Singapore tax authorities generally have up to four years to claw back underpaid tax if the year of assessment is 2008 onwards. Accordingly, tax filings of the Group’s Singapore subsidiary for tax years 2019 through 2022 remain subject to the review by the relevant Singapore tax authorities. There were no ongoing tax examinations as of December 31, 2023 by Singapore tax authorities. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to claw back underpaid tax plus penalties and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities’ tax filings from 2018 through 2022 remain open to examination by the respective tax authorities. Uncertain tax positions The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2023, the Group did not have any significant unrecognized uncertain tax positions. |
Ordinary shares
Ordinary shares | 12 Months Ended |
Dec. 31, 2023 | |
Ordinary shares | |
Ordinary shares | 20. During the year ended December 31, 2021, 2,222,119 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, 1,280,804 Class B ordinary shares were converted to Class A ordinary shares. As of December 31, 2021, 86,993,764 Class A ordinary shares and 151,076,517 Class B ordinary shares had been issued and outstanding, respectively. During the year ended December 31, 2022, 1,717,720 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, 690,000 Class B ordinary shares were converted to Class A ordinary shares. As of December 31, 2022, 89,401,484 Class A ordinary shares and 150,386,517 Class B ordinary shares had been issued and outstanding, respectively. During the year ended December 31, 2023, 2,454,365 Class A ordinary shares were issued for the exercised share options and vested restricted share units. Besides, no Class B ordinary shares were converted to Class A ordinary shares. As of December 31, 2023, 82,696,852 Class A ordinary shares and 150,386,517 Class B ordinary shares had been issued and outstanding, respectively. On August 15, 2023, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$100 million of its ADSs or ordinary shares over a 12-month period. As of December 31, 2023, the Company had repurchased 9,158,997 ADSs with a total aggregate consideration of USD29 million (equivalent to RMB206,345) under this program, of which RMB202,422 has been paid. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-based compensation | |
Share-based compensation | 21. Compensation expense recognized for share-based awards granted by Huya was RMB289,705, RMB156,478 and RMB78,265 respectively during the years ended December 31, 2021, 2022 and 2023. There was no capitalized share-based compensation expense for the years presented. Huya 2017 Share Incentive Plan On July 10, 2017, the Board of Directors of the Company approved the establishment of the Huya 2017 Share Incentive Plan for the purpose of providing incentives for employees contributing to the Group. The plan shall be valid and effective for 10 years from the establishment date. The maximum number of shares that may be issued pursuant to all awards under the plan shall be 17,647,058 shares. On March 31, 2018, the Board of Directors approved to increase the maximum number of shares, that may be issued, from 17,647,058 shares to 28,394,117 shares, including incentive share options and restricted share units. Huya 2021 Share Incentive Plan On June 10, 2021, the Board of Directors of the Company approved the establishment of the Huya 2021 Share Incentive Plan for the purpose of providing incentives for employees with outstanding performance to generate superior returns to the Group. The plan shall be valid and effective for 10 years from the establishment date. The maximum number of shares that may be issued pursuant to all awards under the plan shall be 3,530,111 shares, which shall be solely in the form of restricted share units. On August 11, 2022, the Board of Directors of the Company approved the amendment and restatement in its previously adopted 2021 Share Incentive Plan. The maximum aggregate number of Class A ordinary shares of the Company available for grant of awards was increased from 3,530,111 under the original 2021 Share Incentive Plan to 8,018,111 under the Amended and Restated 2021 Share Incentive Plan. Other terms of the original 2021 Share Incentive Plan remain substantially the same. (i) Options Grant of options During the years ended December 31, 2021, 2022 and 2023, no share options had been granted to employees or non-employees. Vesting of options There are mainly three types of vesting schedule, which are: i) 50% of the options will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, ii) options will be vested in four equal installments over the following 48 months, and iii) options will be vested in four equal installments over the following 24 months. These options shall (i) be exercisable during its term cumulatively according to the vesting schedule set out in the grant notice and with the applicable provisions of Huya 2017 Share Incentive Plan, provided that the performance conditions otherwise agreed by the parties (if any) to which the option is subject have been fulfilled upon each corresponding vesting date; (ii) be deemed vested and exercisable immediately in the event of a change of control, regardless of the vesting schedule; (iii) be exercisable upon any arrangement as otherwise agreed by the parties based on their discussion in good faith. 21. (i) Options (continued) Vesting of options (continued) Movements in the number of share options granted and their related weighted average exercise prices are as follows: Weighted Weighted average Aggregate average remaining intrinsic Number of exercise contractual life value options price (US$) (years) (US$) As of December 31, 2020 792,740 2.5500 6.61 13,778 Forfeited — Exercised (533,425) 2.5500 As of December 31, 2021 259,315 2.5500 5.60 1,138 Forfeited — Exercised (133,313) 2.5500 As of December 31, 2022 126,002 2.5500 4.60 176 Forfeited — Exercised (7,000) 2.5500 As of December 31, 2023 119,002 2.5500 3.60 132 Expected to vest at December 31, 2023 — Exercisable as of December 31, 2023 119,002 2.5500 3.60 132 Prior to the completion of the IPO, the Company has used the binomial option-pricing model to determine the fair value of the share options as of the grant dates. Key assumptions used were as follows: 2018 Weighted average fair value per option granted US$ 5.2130 Weighted average exercise price US$ 2.47 Risk-free interest rate (1) 2.83 % Expected term (in year) (2) 10 Expected volatility (3) 55 % Dividend yield (4) — (1) The risk-free interest rate of periods within the contractual life of the share option is based on the China Government Bond yield as at the valuation dates. (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The Company has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. As of December 31, 2023, there was no unrecognized share-based compensation expense of options relating to Huya 2017 Share Incentive Plan. 21. (ii) Restricted share units Grant of restricted share units During the years ended December 31, 2021, 2022 and 2023, the Company granted 3,550,617, 5,084,817 and 2,787,407 restricted share units to employees respectively. Vesting of restricted share units There are mainly three types of vesting schedule for employees, which are: i) 50% of the restricted share units will be vested after 24 months of the grant date and the remaining 50% will be vested in two equal installments over the following 24 months, ii) restricted share units will be vested in four equal installments over the following 48 months, and iii) restricted share units will be vested in two equal installments over the following 24 months. The following table summarizes the activity of all restricted share units for the years ended December 31, 2021, 2022 and 2023: Weighted Number of average restricted grant-date share units fair value (US$) Outstanding, December 31, 2020 6,644,306 17.1506 Granted 3,550,617 13.9339 Forfeited (806,435) 17.9309 Vested (2,547,290) 16.6645 Outstanding, December 31, 2021 6,841,198 15.5702 Granted 5,084,817 3.1233 Forfeited (1,731,659) 13.4427 Vested (2,921,887) 14.4987 Outstanding, December 31, 2022 7,272,469 7.8046 Granted 2,787,407 2.8824 Forfeited (1,365,256) 7.2654 Vested (3,546,222) 8.5540 Outstanding, December 31, 2023 5,148,398 4.7664 Expected to vest at December 31, 2023 4,879,173 4.7731 For the years ended December 31, 2021, 2022 and 2023, the Company recorded share-based compensation of RMB289,705, RMB156,478 and RMB78,265 using the graded vesting attribution method. As of December 31, 2023, total unrecognized compensation expense relating to the restricted share units was RMB61,713. The expense is expected to be recognized over a weighted average period of 0.73 year using the graded-vesting attribution method. |
Net income (loss) per share
Net income (loss) per share | 12 Months Ended |
Dec. 31, 2023 | |
Net income (loss) per share | |
Net income (loss) per share | 22. Basic and diluted net income per share for the year ended December 31, 2021, 2022 and 2023 are calculated as follows: For the year ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Net income (loss) 583,499 (547,673) (204,519) Numerator for basic and diluted net income (loss) per share 583,499 (547,673) (204,519) Denominator: Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding 238,198,117 241,437,842 243,025,428 —Diluted effect of share options 497,861 — — —Diluted effect of restricted share units 3,094,467 — — Denominator for diluted calculation 241,790,445 241,437,842 243,025,428 Net income (loss) per ordinary share —Basic 2.45 (2.27) (0.84) —Diluted 2.41 (2.27) (0.84) Net income (loss) per ADS* —Basic 2.45 (2.27) (0.84) —Diluted 2.41 (2.27) (0.84) * Each ADS represents one Class A ordinary share. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 23. For the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows: Transactions with Tencent For the year ended December 31, 2021 2022 2023 RMB RMB RMB Acquisition under common control (i) — — 574,826 Content costs charged by Tencent (ii) 485,988 539,451 249,536 Operation support services provided by Tencent 370,393 225,808 142,372 Advertising, sub-licensing and other revenues from Tencent 80,302 22,073 118,844 Disposal gain of an investment (iii) 360,589 — — Others 14,617 12,867 6,422 (i) In December 2023, the Company acquired a global mobile application service provider from a fellow subsidiary of Tencent for an aggregate cash consideration of RMB 574,826 , of which RMB 546,084 has been paid by the Company as of December 31, 2023. (ii) In April 2021, the Group entered into a related party transaction with a fellow subsidiary of Tencent to purchase an exclusive license for broadcasting League of Legends matches during the period from 2021 to 2025, with a total consideration of RMB 2,013 million. In January 2023, the Group has entered into a supplemental agreement to the above-mentioned agreement with Tencent to update the authorised right, licensed scope and total consideration (Note 26). (iii) In 2018, the Group invested as one of the limited partners with significant influence in an investment fund (the “Fund”) which owns an equity interest in an online game company, which was accounted for as an equity investment. For the year ended December 31, 2021, the Group disposed of its interest (through sales to two separate parties) in the Fund with a disposal gain of RMB 378,679 recognized, of which RMB 360,589 was related to the transaction with an entity owned by Tencent. 23. Transactions with JOYY For the year ended December 31, 2021 2022 2023 RMB RMB RMB Operation support services provided by JOYY 2,543 351 468 Purchase of services by JOYY on behalf of Huya 268 502 — As detailed in Note 1(a), after the closing of share transfer between JOYY and Tencent, JOYY does not hold any shares of Huya. The transactions with JOYY after May 5, 2023 were not disclosed as related party transactions. Transactions with entities over which Tencent and/or Huya have significant influence (“Tencent and Huya’s related parties”) For the year ended December 31, 2021 2022 2023 RMB RMB RMB Content costs and revenue sharing fees charged by Tencent and Huya’s related parties 102,311 100,627 61,272 Advertising, sub-licensing and other revenues from Tencent and Huya’s related parties 188,209 13,072 23,902 Others 21,013 18,213 29,178 As of December 31, 2022 and 2023, the amounts due from/to related parties are as follows: December 31, 2022 2023 RMB RMB Amounts due from related parties Tencent 44,168 147,776 Others 15,836 1,089 Less: credit loss provision (302) (217) Total 59,702 148,648 Amounts due to related parties Tencent 93,574 141,743 Others 40,072 35,971 Total 133,646 177,714 The following table presents the activity in the credit loss provision related to amounts due from related parties for the years ended December 31, 2022 and 2023: For the years ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year (299) (393) (302) Current year provision (387) (139) (219) Current year reversal 293 230 304 Balance at end of the year (393) (302) (217) The other receivables/payables from/to related parties are unsecured, interest-free and payable on demand. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair value measurements | |
Fair value measurements | 24. Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the assets or liabilities. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows: Level 1—Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2—Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. Level 3—Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. The following table sets forth the financial instruments measured or disclosed at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2022 and 2023: As of December 31, 2022 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Short-term investments (i) — 3,117 — 3,117 Available-for-sale debt investments (ii) — — 384,076 384,076 24. As of December 31, 2023 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Available-for-sale debt investments (ii) — — 428,512 428,512 (i) Short-term investments represent the investments issued by commercial banks and financial institution with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair values are estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. (ii) Available-for-sale debt investments are investments made by the Group without readily determinable fair values as set out in Note 10, which were categorized as Level 3 in the fair value hierarchy. These investments were valued based on a model utilizing unobservable inputs requiring significant management judgment and estimation. The Company uses a combination of valuation methodologies, including income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees, future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies. Management determined the fair value of Level 3 investments based on income approach or market approach using various unobservable inputs. The determination of the fair value required significant judgement by management with respect to the assumptions and estimates for risk-free rate, weighted average cost of capital and probability in equity allocation for income approach; and a selection of price-to-sales multiples of comparable companies and multiples, probability of the different scenarios assumed under the equity allocation model and a discount for lack of marketability for market approach. For the year ended December 31, 2023, the Company recognized credit impairment and non-credit losses with aggregated amounts of RMB14,987 and RMB20,824 related to these available-for-sale debt investments. The roll forward of Level 3 investments are as follows: Total Fair value of Level 3 investments as at December 31, 2021 157,160 New additions 125,743 The change in fair value of the investments 101,173 Fair value of Level 3 investments as at December 31, 2022 384,076 New additions 80,247 Credit losses provisions (14,987) The change in fair value of the investments (20,824) Fair value of Level 3 investments as at December 31, 2023 428,512 Fair value measurement on a non-recurring basis The Group measures investments without readily determinable fair value on a non-recurring basis when impairment charges and fair value change due to observable price change are recognized. 24. Fair value measurement on a non-recurring basis (continued) An observable price change is usually resulting from new rounds of financing of the investees. The Group determines whether the securities offered in new rounds of financing are similar to the equity securities held by the Group by comparing the rights and obligations of the securities. When the securities offered in new rounds of financing are determined to be similar to the securities held by the Group, the Group adjusts the observable price of the similar security to determine the amount that should be recorded as an adjustment in the carrying value of the security to reflect the current fair value of the security held by the Group by using the back-solve method based on the equity allocation model with adoption of some key parameters such as risk-free rate and equity volatility or market approach by using the selection of comparable companies operating in similar businesses and etc. For the years ended December 31, 2021, 2022 and 2023, gain on fair value changes of investment of RMB44,161, RMB7,602 and nil were recognized due to the observable price change of the investments without readily determinable fair value. These non-recurring fair value measurements use similar identifiable transaction prices as Level 2 of fair value measurements. Certain privately held investments accounted for using the measurement alternative election were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to fair values, considering factors including, but not limited to, (i) adverse performance and cash flow forecasts of investees; (ii) adverse industry developments affecting investees; and (iii) adverse regulatory, social, economic or other developments affecting investees. For the year ended December 31, 2021, 2022 and 2023, an impairment charge of nil, RMB55,201 and RMB210,813 was recognized as an impairment loss for these equity investments without readily determinable fair values. As of December 31, 2022 and 2023, the carrying value of these impaired investments measured at Level 3 inputs were RMB82,140 and RMB65,936 respectively. The fair value of the privately held investments was measured based on significant inputs as detailed in Note 10. Apart from the short-term investments, equity investments measured at fair value through earnings and available-for-sale debt investments the Group’s other financial instruments principally consist of cash and cash equivalents, short-term deposits, long-term deposits, accounts receivable, other receivables, amounts due to/from related parties, accounts payable, certain accrued expenses. These financial instruments are recorded at cost which approximates fair value. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 25. The Company entered into operating lease agreements primarily for offices and land. The following table summarizes the lease expense for the years ended December 31, 2021, 2022 and 2023: For the year ended December 31, 2021 2022 2023 RMB RMB RMB Operating lease expense 40,001 44,754 41,126 Short-term lease expense 16,438 13,543 12,730 Total lease expense 56,439 58,297 53,856 Weighted-average remaining lease term (in years) – operating leases 2.7 Weighted-average discount rate – operating leases 4.8 % 25. As of December 31, 2023, future minimum lease payments under non-cancellable operating lease agreements for which the Group has recognized operating lease right-of-use assets and liabilities were as follows: For the year ending December 31, Future minimum payments RMB 2024 32,650 2025 30,260 2026 22,330 Total undiscounted cash flows 85,240 Less: imputed interest (5,339) Total 79,901 Supplemental cash flow information related to leases for the years ended December 31, 2021, 2022 and 2023 are as follows: For the year end December 31, 2021 2022 2023 RMB RMB RMB Cash paid for operating leases 43,024 38,035 34,090 Lease liabilities arising from obtaining right-of-use assets 26,077 13,567 74,876 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Commitments and contingencies | 26. (a) As of December 31, 2023, future minimum payments under non-cancelable agreements consist of the following, Operating commitments RMB 2024 4,913 2025 4,680 2026 3,650 13,243 The commitments presented above mainly consist of property management fees, short-term lease commitments and leases that have not yet commenced but that create significant rights and obligations for the Company, which are not included in operating lease right-of-use assets and lease liabilities. (b) In 2021, the Group signed a contract to purchase an exclusive license for broadcasting League of Legends matches from a fellow subsidiary of Tencent during the period from 2021 to 2025 at an aggregate purchase price of RMB2,013 million. In January 2023, as a result of a supplemental agreement with Tencent, the Group no longer has any sub-licensing rights and the aggregate purchase price is decreased to RMB450 million, attributable to the the period from 2023 to 2025. (c) As of December 31, 2023, the Group had outstanding capital expenditures contracted for construction in progress totalling RMB356,686. 26. (d) As of December 31, 2021, the Group involved in a few cases related to unfair competition in live streaming broadcasters recruitment. In 2022, these cases were all withdrawn. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent events | |
Subsequent events | 27. In March 19, 2024, the board of directors of the Company declared a special cash dividend of US$0.66 per ordinary share, or US$0.66 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on May 10, 2024, payable in U.S. dollars. The ex-dividend date will be May 9, 2024. The total amount of cash to be distributed for the dividend is expected to be approximately US$150 million, which will be funded by surplus cash on the Company’s balance sheet. The payment date for holders of ordinary shares and holders of ADSs is expected to be on or around May 24, 2024. The dividend to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net | |
Restricted net assets | 28. Relevant PRC laws and regulations permit payments of dividends by the entities incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s entities in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s entities incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion as calculated under U.S. GAAP amounted to RMB763,960 and RMB782,614 as of December 31, 2022 and 2023. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiaries and VIE to satisfy any obligations of the Company. 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 at the time of requesting such conversion may temporarily delay 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. For the year ended December 31, 2023, the Company performed a test on the restricted net assets of subsidiaries and VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets do not exceed 25% of the consolidated net assets of the Company as of December 31, 2023 and the condensed financial information of the Company are not required to be presented. |
Principal accounting policies (
Principal accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Principal accounting policies | |
Basis of presentation | (a) The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the consolidated financial statements are summarized below. |
Consolidation | (b) The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries and VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual agreements, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Huya Technology and ultimately the Company hold all the variable interests of the VIE and has been determined to be the primary beneficiary of the VIE. |
Use of estimates | (c) The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, related disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period in the consolidated financial statements and accompanying notes. Actual results could differ materially from such estimates. The Company believes that the assessment of whether the Group acts as a principal or an agent in different revenue streams, the determination of estimated selling prices of multiple element revenue contracts, the valuation allowance for deferred tax assets and income tax, subsequent adjustment due to significant observable price change for the equity investments without readily determinable fair values and not accounted for by the equity method, impairment assessment of investments in equity securities without readily determinable fair value, fair value determination for available-for-sale debt investments, impairment assessment of goodwill, valuation of assets acquired and liabilities assumed in acquisition under common control and allowances for credit losses, represent significant accounting policies that reflect significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Acquisition | (d) (i) Business combination The Group accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 “Business Combinations” (“ASC 805”). Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the business acquired, the difference is recognized directly in the consolidated statements of comprehensive loss as gain on bargain purchase. During the measurement period, which can be up to one year from the acquisition date, the Group may record adjustments to the initially recorded balances of assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of comprehensive loss. (ii) The consolidated financial statements incorporate the financial information of a business that was acquired in 2023 from an entity that controls both the Group as well as the acquired business. Under U.S. GAAP this is considered a business combination under common control and the acquiring company’s (the Group’s) prior year financial statements have been adjusted to reflect the acquisition for all periods during which both entities were under common control (2022 with regard to this transaction). Under U.S. GAAP the acquired assets and assumed liabilities have been consolidated in the Group financial statements at the historical basis of the respective account balances. |
Foreign currency translation | (e) The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong, Cayman Islands and Singapore is primarily the United States dollar (“US$”), while the functional currency of the Group’s entities in PRC is RMB, which is their respective local currency. In the consolidated financial statements, the financial information of the Company and its subsidiaries, which use US$ as their functional currency, have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains, and losses are translated using the average exchange rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a component of other comprehensive (loss) income in the statement of comprehensive income. 2. (e) Foreign currency transactions denominated in currencies other than functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from remeasurement at year-end are recognized in foreign currency exchange gains (losses), net in the consolidated statement of comprehensive income. |
Convenience translation | (f) Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the noon buying rate of US$1.00 =RMB7.0999 on December 29, 2023 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Cash and cash equivalents | (g) Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term and highly liquid investments placed with banks, which have both of the following characteristics: i) Readily convertible to known amounts of cash throughout the maturity period; ii) So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Group considers all highly liquid investments with original maturities of three months or less as cash equivalents. |
Restricted cash | (h) Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash is substantially a cash balance on deposit required by its commercial banks, the court, and government department. |
Short-term deposits and long-term deposits | (i) Short-term deposits represent time deposits placed with banks with original maturities of more than three months but less than one year. Interest earned is recorded as interest income in the consolidated statement of comprehensive income during the years presented. Long-term deposits of the Group represent time deposits placed with banks with original maturities of more than one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive income during the years presented. |
Short-term investments | (j) For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Receivables | (k) The Group’s accounts receivable, other receivables, amounts due from related parties, prepayments and other current assets are within the scope of ASC Topic 326. Accounts receivable consist primarily of receivables from third-party payment platforms and advertising customers. The activity in the loss allowance for the years ended December 31, 2022 and 2023 is detailed in Note 8, Note 9 and Note 23. 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 historical experience of loss severity and recoveries, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. Other key factors that influence the expected credit loss analysis include credit rating, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. |
Investments | (l) Equity Investments Accounted for Using the Equity Method The Group accounts for its equity investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. The Group evaluates its equity method investment for impairment under ASC 323-10. An impairment loss on an equity method investment is recognized in the consolidated statement of comprehensive income when the decline in value is determined to be other-than-temporary. The Group recognized impairment losses of nil, RMB414 and nil for the years ended December 31, 2021,2022 and 2023, respectively. Equity Investments without Readily Determinable Fair Values The Group elected to record equity investments without readily determinable fair values, which are not accounted for using the equity method and do not qualify for the existing practical expedient in ASC 820 to estimate fair value using the net asset value per share (or its equivalent) of the investments and, at cost, less impairment, adjusted for subsequent observable price changes, and will report changes in the carrying values of the equity investments in earnings. Changes in the carrying values of the equity investment are made whenever there are impairment or observable price changes in orderly transactions for the identical or similar investment of the same issuer that are known or that can reasonably be known to the Group based on reasonable effort. For equity investments without readily determinable fair value for which the Group has elected to apply the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying judgment in considering various factors and events including a) adverse performance of investees; b) adverse industry developments affecting investees; and c) adverse regulatory social, economic or other developments affecting investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss of investments equal to the difference between the carrying value and fair value. The Group recognized impairment losses of nil, RMB55,201 and RMB210,813 for the year ended December 31, 2021, 2022 and 2023, respectively. Refer to Note 10- Investments for further information. 2. (l) Available-for-sale Debt Investments The Group has classified its investments in debt securities, other than those the held to maturity debt securities, as available-for-sale securities. The Group recorded available-for-sale debt investments at estimated fair values with the aggregate unrealized gains and losses, net of tax, being reflected in “accumulated other comprehensive (loss) income” in the consolidated balance sheets. If the amortized cost basis of an available-for-sale investment exceeds its fair value and if the Group has the intention to sell the investment or it is more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis, an impairment is recognized in the consolidated statements of comprehensive income. If the Group does not have the intention to sell the investment and it is not more likely than not that the Group will be required to sell the investment before recovery of the amortized cost basis and the Group determines that the decline in fair value below the amortized cost basis of an available-for-sale investment is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance for credit losses along with the impairment loss of investments in the consolidated statements of comprehensive income. The allowance is measured as the amount by which the debt investment’s amortized cost basis exceeds the Group’s best estimate of the present value of cash flows expected to be collected. The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. |
Property and equipment | (m) Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Property and equipment mainly consist of servers, computers and equipment, leasehold improvements and others. Estimated useful lives Residual rate Servers, computers and equipment 3-4 years 0 % Leasehold improvements Shorter of lease term or the estimated useful lives of the assets 0 % Office furnitures and others 3-5 years 0%-5 % The Company also has certain construction in progress which represents a building under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use. Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statement of comprehensive income. |
Intangible assets | (n) Intangible assets mainly consist of copyrights of video content, license, software, domain names, trademarks, platform content and technology. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. As of December 31, 2022 and 2023, there are no indefinite lived intangibles. Finite-lived intangible assets are tested for impairment if impairment indicators arise. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Estimated useful lives Copyrights of video content 1 – 4 years License 15 years Software 1 – 10 years Domain names 15 years Trademarks 5-11 years Platform content 7 years Technology 4 years |
Impairment of goodwill | (o) Impairment of goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized. The Group conducts a goodwill impairment test at the reporting unit level annually in the fourth quarter, or more frequently when events or circumstances occur indicating that the recorded goodwill might be impaired. The Group first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Group decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value (determined using the income approach) of each reporting unit with its carrying amount. An impairment charge will recorded for the amount by which the carrying amount of the reporting unit exceeds its fair value up to a maximum amount of the goodwill balance for the reporting unit. 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 judgment in estimating the fair value of reporting units includes estimating future cash flows. The estimated cash flow projections were based on management’s estimates which include significant judgments and assumptions relating to revenue growth rates, the terminal growth rate, and the discount rate. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. The Group determined there are two reporting units as of December 31, 2023. One reporting unit relates to the live streaming business, and the other reporting unit relates to the recently acquired global mobile application service provider (the only reporting unit with a goodwill balance). RMB34,640 and nil of impairment loss of goodwill was recognized for the years ended December 31, 2022 and 2023, respectively. Refer to Note 11- Goodwill for further information. |
Impairment of long-lived assets | (p) For long-lived assets other than investments whose impairment policy is discussed elsewhere in the financial statements, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset grouping may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the asset grouping. Any impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2021, 2022 and 2023. |
Revenue | (q) Under ASC 606, revenue is recognized when a customer obtains control of promised goods (i.e. virtual items) 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 following table disaggregates the Group’s revenue by major type for the years ended December 31, 2021, 2022 and 2023: For the year ended December 31, 2021 2022 2023 RMB RMB RMB Live streaming 10,186,204 8,195,907 6,450,782 Advertising and others (i) 1,165,242 1,068,444 543,546 Total 11,351,446 9,264,351 6,994,328 (i) Advertising and others mainly include advertising, sub-licensing and online games revenues. Revenue recognition and significant judgments (i) Live streaming The Group is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. It generates revenue primarily from sales of virtual items in the platforms. The Group has a recharge system for users to purchase the Group’s virtual currency, which can then be utilised to purchase virtual items for use on the live streaming platforms. Users can recharge via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable and without expiry. As the virtual currency is often consumed soon after it is purchased based on history of turnover of the virtual currency, the Group considers it does not expect to be entitled to a breakage amount for the virtual currency. Unconsumed virtual currency is recorded as deferred revenue. Virtual currencies used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed below unless otherwise stated. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with broadcasters and talent agencies which recruit and manage broadcasters in accordance with their revenue sharing arrangements. 2. (q) Revenue recognition and significant judgments (continued) (i) Live streaming (continued) The Group evaluates and determines that it is the principal and views users to be its customers in the revenue generating arrangement and the Group reports live streaming revenues on a gross basis. Accordingly, the amounts billed to users are recorded as revenues and revenue sharing fee paid/payable to broadcasters and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined standalone selling price. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use, while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to broadcasters to show support for their favorite broadcasters, or purchase time-based virtual items for one or multiple months at a monthly fee, which provide users with recognized status, such as priority speaking rights or special user symbols over a period of time. Revenue related to each consumable item is recognized as single performance obligation at the point in time when the virtual item is transferred directly to the users and consumed by them, while revenue related to time-based virtual items provided on a subscription basis is recognized ratably over the contract period. The Group does not have any further performance obligations to the user after the virtual items are consumed or after the stated contract period of time for time-based items. The Group may also enter into contracts that can include various combinations of virtual items, which are generally capable of being distinct and accounted for as separate performance obligations, such as Huya Noble Member Program. Determining whether those virtual items are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The contract of Huya Noble Member Program, which is normally purchased on a monthly basis, includes three major virtual items, a) the noble member status, b) the virtual currency coupons, and c) the right of subsequent renewal at a discounted price, which are considered distinct and accounted for separately under ASC 606. A noble member status itself cannot be purchased on a standalone basis, and it is used for one month but the users can simultaneously purchase multiple months of the package (with effective period of noble member status limited to a maximum of 24 months from date of purchase) at any point in time. The virtual currency coupons, which have the same purchase power as the Group’s virtual currency but with expiry dates, is valid to purchase virtual items for a fixed period. Judgment is required to determine standalone selling price for each distinct performance obligation. The Group allocates the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. For instances where standalone selling price is not directly observable as the Group does not sell the virtual item separately, such as the noble member status and the virtual currency coupons, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. In respect of the right of subsequent renewal at a discounted price, the Group estimates individual user’s times of renewal based on historical data of users’ spending pattern and average times of renewal. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue allocated to noble member status, it’s generally recognized ratably over the contract period as users simultaneously consume and receive a series of services, virtual items and virtual rights. For revenue related to virtual currency coupons provided on a consumption basis, virtual currency coupons used to purchase virtual items are recognized as revenue according to the prescribed revenue recognition policies of virtual items addressed above unless otherwise stated. Although the virtual currency coupons have expiry dates, the Group considers the impact of the breakage amount for virtual currency coupons is insignificant as historical data shows that virtual currency coupons are consumed shortly after they are released to users and the forfeiture rate remains relatively low for the periods reported, therefore, the Group does not expect to be entitled to a breakage amount for the virtual currency coupons. For the right of subsequent renewal at a discounted price, upon each time a subsequent renewal is purchased, the cash received is recorded as deferred revenue and allocated proportionally to the noble member status and virtual currency coupons based on their relative standalone selling price and revenue is then recognized following the revenue recognition method of noble member status and virtual currency coupons as described above. 2. (q) Revenue recognition and significant judgments (continued) (ii) Advertising The Group generates advertising revenues primarily from sales of various forms of advertising and promotion campaigns, including (i) display advertisements in various areas of our platform, (ii) native advertisements in cooperation with broadcasters, and (iii) game events advertising and campaigns. Advertisements on the Group’s platforms are generally charged on the basis of duration. Advertising contracts are signed to establish the fixed price and the advertising services to be provided. Where the service is transferred to customers, revenues from advertising contracts are recognized ratably over the contract period of display. The Group enters into advertising contracts directly with advertisers or third-party advertising agencies that represent advertisers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 3 months. Both third-party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. In instances where the timing of revenue recognition differs from the timing of billing, the Group has determined the advertising contracts generally do not include a significant financing component. The primary purpose of the credits terms is to provide customers with simplified and predictable ways of purchasing the Group’s advertising services, not to receive financing from its customers or to provide customers with financing. The Group provides sales incentives to certain customers in the forms of discounts and rebates based on purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to customers considering the contracted rebate rates and estimated sales volume based on historical experience, and reduce revenues recognized. The Group believes that there will not be significant changes to its estimates of variable consideration. (iii) Online games revenues The Group generates revenues from offering virtual items in online games developed by the Group itself or third parties to game users. The Group has a recharge system for game users to purchase game tokens for use. Game users can recharge via various online payment platforms, including WeChat Pay, AliPay and other payment platforms. Game tokens is non-refundable and without expiry. As the game token is often consumed soon after it is purchased based on history of turnover of the game token, the Group considers it does not expect to be entitled to a breakage amount for the game token. Majority of online games revenues were derived from the Group’s self-developed games for the years presented. 2. (q) Revenue recognition and significant judgments (continued) (iii) Online games revenues (continued) With respect to the game operation contracts entered into between the Group and distribution platforms for co-publishing or between the Group and users for self-publishing, the Group owns the games’ copyrights and other intellectual property, and takes primary responsibilities of game development and game operation, including designing, development, and updating of the games including the game content, as well as the pricing of virtual items, providing on-going updates of new contents and bug fixing, determining the distribution platforms and payment channels, and providing customer services. Therefore, the Group considers itself to be the principal in these contracts and views users to be its customers. Revenues derived from self-developed games are recorded on a gross basis, and fees to be shared with distribution platforms and payment handling costs charged by payment platforms are recorded as cost of revenues. Users play games free of charge and are charged for purchases of virtual items mainly including consumable and perpetual items, which can be utilized to enhance users’ game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online games. The Group maintains information on consumption details of in-game virtual items, therefore, the Group recognizes revenues based on item-based model: (1) for consumable items, the revenue is recognized immediately upon consumption as the Group does not have further performance obligations to the user after the virtual items are consumed immediately; (2) for perpetual items, as the Group has responsibilities to ensure the game users can continue to gain access to the games to get the in-game experience and benefit after the sale of the perpetual items and the Group’s service obligations are directly linked to each game user’s engagement, therefore, the revenue from sales of perpetual items is recognized ratably over the user relationship period of a specific game as described below. The estimated user relationship period is based on data collected from those game users who have purchased game tokens. The Group maintains a system that captures the following information for each game user: (a) the frequency that game users log into each game, and (b) the amount and the timing of when the game users charge his or her game token. The Group estimates the user relationship period for a particular game to be the date a user purchases a game token through the date the Group estimates the game user plays the game for the last time. This computation is completed on a user by user basis. Then, the results for all analyzed users are averaged to determine an estimated end user relationship period for each game. Revenues from in-game payments of each month are recognized over the user relationship period estimated for that game. The determination of user relationship period is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. The Group assesses the estimated user relationships on a monthly basis. Any adjustments arising from changes in the user relationship as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections. 2. (q) (iv) Sub - licensing The Group generates licensing revenue primarily from sub-licensing broadcasting rights of e-sports contents, which was purchased from the e-sports contents providers, to other livestreaming platforms. The e-sports contents consist of a series of matches. As the licensed e-sports contents are not available for broadcasting and sub-licensing until the e-sports contents of each match is delivered and produced, the sub-licensing revenue is treated as a point of time type of revenue when the e-sports content of each match was broadcasted and sub-licensed to the other platforms. Revenues from barter transactions were recognized during the year ended December 31, 2021 and 2022, in which the e-sports contents are sub-licensed to other live streaming platforms. Barter transactions in which e-sports contents are received in exchange for other e-sports contents are recorded based on the fair values of the e-sports contents received under ASC 606. No revenue from barter transaction was recognized during the year ender December 31, 2023. Contract balances Contract liabilities primarily consist of deferred revenue for unconsumed virtual items and unamortized revenue from virtual items in the Group’s platforms, where there is still an obligation to be provided by the Group, which will be recognized as revenue when all of the revenue recognition criteria are met. During the years ended December 31, 2021, 2022 and 2023, the Group recognized revenue amounting to RMB485,878, RMB459,509 and RMB446,881, respectively, that had been included in the corresponding contract liability balance at the beginning of the years. As of December 31, 2023, the aggregate amount of transaction price allocated to remaining performance obligations was RMB460,121, the Company expects to recognize the remaining performance obligations as revenue as follows. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term. 2024 2025 and after Total RMB RMB RMB Revenue expected to be recognized 412,257 47,864 460,121 |
Cost of revenues | (r) Cost of revenues Amounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of (i) revenue sharing fees to broadcasters and content costs, including payments to e-sports content providers and other various content providers, (ii) bandwidth costs, (iii) salaries and welfare, (iv) payment handling costs, (v) depreciation and amortization expense for servers and other equipment, and intangibles directly related to operating the platform, (vi) share-based compensation, (vii) other taxes and surcharges, and (viii) other costs. |
Research and development expenses | (s) Research and development expenses Research and development expenses primarily consist of (i) salaries and welfare for research and development personnel, and (ii) share-based compensation for research and development personnel. Costs incurred during the research stage are expensed as incurred. Costs incurred in the development stage, prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The Company recognizes software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. The Company had not capitalized any costs related to internal use software during the years ended December 31, 2021, 2022 and 2023. |
Sales and marketing expenses | (t) Sales and marketing expenses Sales and marketing expenses primarily consist of (i) advertising and market promotion expenses, (ii) salaries and welfare for sales and marketing personnel, and (iii) share-based compensation for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB655,957, RMB412,553 and RMB348,235 for the years ended December 31, 2021, 2022 and 2023, respectively. |
General and administrative expenses | (u) General and administrative expenses General and administrative expenses primarily consist of (i) salaries and welfare for management and administrative personnel, and (ii) share-based compensation for management and administrative personnel. |
Employee social security and welfare benefits | (v) Employee social security and welfare benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group is required to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the accompanying statement of comprehensive income amounted to RMB187,200, RMB227,008 and RMB194,779 for the years ended December 31, 2021, 2022 and 2023, respectively. During the years ended December 31, 2021, 2022 and 2023, headcount reduction initiatives primiraly related to research and development personnel were undertaken as part of the Group’s business optimization plans.These initiatives resulted in one time employee severance programs with corresponding recorded provisions of nil, RMB53,595 and RMB34,000 respectively. The charges are primarily reported within research and development expenses in the accompanying statements of comprehensive income. |
Share-based compensation | (w) Share-based compensation Share-based compensation expense arises from share-based awards, including share options for the purchase of Huya’s ordinary shares and Huya’s restricted share units, granted by the Group to its management, key employees and non-employees. Huya’s share options Prior to the IPO date (Note 1(b)), in determining the fair value of share options granted, the binomial option-pricing model was applied. The determination of the fair value was affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, the expected share price volatility rates, and expected dividends. Following the listing of the Company, the grant date fair value of share options began to be determined based on the stock price of the Company’s ordinary shares listed on the NYSE minus the respective exercise price. Share-based compensation expense for share options granted to employees is measured based on their grant-date fair values and recognized over the requisite service period, which is generally the vesting period. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and the related compensation expense is not recorded for the number of awards so estimated. No performance based awards were granted or recognized as share-based compensation expense for the years ended December 31, 2021, 2022 and 2023. 2. (w) Share-based compensation (continued) Huya’s restricted share units Share-based awards with service conditions only are measured at the grant date fair value of the awards and recognized as expenses using the graded-vesting method, net of estimated forfeitures, over the requisite service period. Fair value of restricted share units (“RSUs”) is determined with reference to the fair value of the underlying shares. Forfeiture rate is estimated based on historical forfeiture patterns and adjusted to reflect future change in circumstances and facts, if any. If actual forfeitures differ from those estimates, the Company may need to revise those estimates used in subsequent periods. |
Leases | (x) Leases Under ASC 842, the Group determines if an arrangement is or contains a lease at inception. The Company categorize leases with contractual terms longer than twelve months as either operating or finance. Finance leases are generally those leases that allow lessee to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. All the leases recognized by the Company were classified as operating leases for the years presented. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments plus any direct costs from executing the leases or lease prepayments reclassified from “Prepayments and other current assets” upon lease commencement. Operating lease expense is recognized on a straight-line basis as cost of sales, sales and marketing expenses, general and administrative expenses and research and development expenses over the term of the lease. For operating leases with a term of one year or less, the Company has elected not to recognize a lease liability or ROU asset on its consolidated balance sheets. Instead, it recognizes the lease payments as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements of operations and cash flows. The Company has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as a single lease component. |
Government grants | (y) Government grants Government grants, which mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development, are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated income statements upon receipt or when all conditions attached to the grants are fulfilled. |
Income taxes | (z) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized in statement of comprehensive income in the period enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. 2. (z) Income taxes (continued) Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Group did not recognize any interest and penalties associated with uncertain tax positions for the years ended December 31, 2021, 2022 and 2023. As of December 31, 2022 and 2023, the Group did not have any significant unrecognized uncertain tax positions. |
Treasury shares | (aa) Treasury shares The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in “Treasury shares” on the consolidated balance sheets. At retirement of the treasury share, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital and retained earnings. |
Statutory reserves | (bb) Statutory reserves The Group’s PRC entities are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Group’s subsidiaries registered as WFOEs have to make appropriations from its after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”)) to reserve funds including a general reserve fund, and a staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the company. Appropriation to the staff bonus and welfare fund is at the company’s discretion. In addition, in accordance with the Company Laws of the PRC, the Group’s entities registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. The use of the general reserve fund, statutory surplus fund and discretionary surplus fund are restricted to the off-setting of losses or increasing capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to staff and for the collective welfare of employees. All these reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. During the years ended December 31, 2021, 2022 and 2023, appropriations to the general reserve and statutory surplus funds amounted to nil, nil and nil, respectively. |
Related parties | (cc) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Dividends | (dd) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2021, 2022 and 2023. On March 19, 2024, the board of directors of the Company has declared a special cash dividend of US$0.66 per ordinary share, or US$0.66 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on May 10, 2024. The total amount of cash to be distributed for the dividend is expected to be approximately US$150 million, which will be funded by the Company’s surplus cash. The payment date for holders of ordinary shares and holders of ADSs is expected to be on or around May 24, 2024. |
Income (loss) per share | (ee) Income (loss) per share Basic income (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options and the vesting of restrict share units using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted income (loss) per share calculation when inclusion of such share would be anti-dilutive. |
Segment reporting | (ff) Segment reporting The Group’s chief operating decision maker has been identified as its Acting Co-Chief Executive Officers, who review the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. Therefore, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The Company is domiciled in the Cayman Islands while the Group mainly operates its businesses in the PRC and earns majority of the revenues from external customers attributed to the PRC. |
Newly adopted accounting standard updates | (gg) Newly adopted accounting standard updates In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company adopted this update in the first quarter of 2022 and the adoption did not have a material impact to the Company’s consolidated financial statements. 2. (gg) Newly adopted accounting standard updates (continued) In May 2021, the FASB issued ASU No. 2021-04, 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), which clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The ASU is effective for public in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for all entities, including adoption in an interim period. The Company adopted this guidance prospectively and the adoption of this guidance did not have a material impact on the financial position, results of operations and cash flows. In November 2021, the FASB issued ASU No.2021-10, Government Assistance (Topic 832). This ASU requires business entities to disclose information about government assistance they receive if the transactions were accounted for by analogy to either a grant or a contribution accounting model. The disclosure requirements include the nature of the transaction and the related accounting policy used, the line items on the balance sheets and statements of operations that are affected and the amounts applicable to each financial statement line item and the significant terms and conditions of the transactions. The ASU is effective for annual periods beginning after December 15, 2021. The disclosure requirements can be applied either retrospectively or prospectively to all transactions in the scope of the amendments that are reflected in the financial statements at the date of initial application and new transactions that are entered into after the date of initial application. The Company adopted this guidance prospectively and the adoption of this guidance did not have impact on the financial position, results of operations and cash flows. In August 2020, the FASB issued 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, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The ASU is effective for public in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Group did not early adopt and is currently evaluating the impact of adopting this ASU on its consolidated financial statements. The Company adopted this guidance prospectively and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The ASU is effective for annual periods beginning after December 15, 2023. Early adoption is permitted. The Company adopted this guidance prospectively and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Recently issued accounting pronouncements | (hh) Recently issued accounting pronouncements In November 2023, the “FASB” issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment's performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in the Group including the additional required disclosures when adopted. The Group are currently evaluating the provisions of this ASU and expect to adopt them for the year ending December 31, 2024. In December, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures” to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Group is currently evaluating the impact of the above new accounting pronouncements or guidances on the consolidated financial statements. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and principal activities | |
Schedule of Details of the Subsidiaries, VIEs and VIE's Subsidiaries | As of December 31, 2023, the Company’s principal subsidiaries and VIE are as follows: Name Place of incorporation Date of incorporation % of direct or indirect economic ownership Principal activities Principal subsidiaries Huya Limited Hong Kong January 4, 2017 100 % Investment holding Guangzhou Huya Technology Co., Ltd. (“Huya Technology”) PRC June 16, 2017 100 % Software development HUYA PTE. LTD. Singapore July 23, 2018 100 % Internet value added services Hainan Huya Entertainment Information Technology Co., Ltd. (“Hainan Huya”) PRC December 4, 2019 100 % Cultural and Creative services VIE Guangzhou Huya Information Technology Co., Ltd. (“Guangzhou Huya”) PRC August 10, 2016 100 % Internet value added services |
Schedule of Condensed Consolidated Statements Data for the VIEs | The following table sets forth the financial data for the VIEs on an aggregated basis. For purposes of this presentation, activity within and between the VIEs have been eliminated, but transactions with other entities within the Consolidated Group have been included without elimination. Presentation of the comparative data for 2022 and 2023 have been expanded to conform to the current year presentation. Selected Condensed Consolidated Balance Sheets Data for the VIEs As of December 31, 2022 2023 RMB RMB Assets Cash and cash equivalents 14,259 7,730 Restricted cash 4,050 18,137 Short-term deposits 490,000 130,000 Accounts receivable, net 55,305 27,795 Prepayments and other current assets 219,716 232,364 Amounts due from related parties 45,127 147,582 Amounts due from Group companies (1) 1,098,883 954,184 Investments 724,110 600,096 Intangible assets, net 54,660 30,364 Long-term deposits — 360,000 Other assets 12,866 18,604 Total assets 2,718,976 2,526,856 Deferred revenue and advances from customers 502,682 445,888 Accrued liabilities and other current liabilities 504,218 466,890 Amount due to related parties 48,277 103,055 Other liabilities 26,424 32,489 Total liabilities 1,081,601 1,048,322 Total shareholders’ equity 1,637,375 1,478,534 Selected Condensed Consolidated Statements of Operation Data for the VIEs For the year ended December 31, 2021 2022 2023 RMB RMB RMB Third-party revenues 10,897,479 8,937,121 6,686,033 Total cost and expenses (2) (10,789,307) (9,161,422) (6,746,390) Others, net 195,202 55,551 (94,625) Income (loss) before income tax expenses 303,374 (168,750) (154,982) Income tax expenses (50,374) (6,801) — Share of loss from equity method investments (37) (520) — Net income (loss) 252,963 (176,071) (154,982) Selected Condensed Consolidated Cash Flows Data for the VIEs For the year ended December 31, 2021 2022 2023 RMB RMB RMB Net cash provided by operating activities (3) 1,176,397 379,397 56,821 Loans and advances to Group companies (911,916) (160,406) — Other investing activities (197,261) (720,237) (49,263) Net cash used in investing activities (1,109,177) (880,643) (49,263) Net cash used in financing activities — — — Note: (1) Inter-company service fees for technology support, business support and consulting fees (collectively defined as “VIE service fees”) are charged pursuant to the exclusive business cooperation agreement. As of December 31, 2021, 2022, and 2023, the outstanding balance of amounts due from Group companies were inter-company advances. There were no outstanding balances for VIE service fees charged to the VIEs. (2) For the years ended December 31, 2021, 2022 and 2023, VIE service fees were charged by the WFOE and other subsidiaries to the VIEs amounting to RMB 8,664 million, RMB 6,863 million and RMB 5,530 million, respectively, which were settled as occurred. (3) For the years ended December 31, 2021, 2022 and 2023, cash paid by the VIEs to the WFOE and other subsidiaries for VIE service fees were RMB 8,664 million, RMB 6,433 million and RMB 5,391 million, respectively. For the years ended December 31, 2021, 2022 and 2023, nil , RMB 415 million and RMB 139 million of the VIE service fees were not settled by cash, but netting against the intercompany receivables from the primary beneficiary of VIE. |
Principal accounting policies_2
Principal accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Principal accounting policies | |
Schedule of Property and Equipment Estimated Useful Lives and Residual Rate | Estimated useful lives Residual rate Servers, computers and equipment 3-4 years 0 % Leasehold improvements Shorter of lease term or the estimated useful lives of the assets 0 % Office furnitures and others 3-5 years 0%-5 % |
Schedule of amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives | Estimated useful lives Copyrights of video content 1 – 4 years License 15 years Software 1 – 10 years Domain names 15 years Trademarks 5-11 years Platform content 7 years Technology 4 years |
Disaggregation of Revenue | For the year ended December 31, 2021 2022 2023 RMB RMB RMB Live streaming 10,186,204 8,195,907 6,450,782 Advertising and others (i) 1,165,242 1,068,444 543,546 Total 11,351,446 9,264,351 6,994,328 (i) Advertising and others mainly include advertising, sub-licensing and online games revenues. |
Summary of Revenue Related to Performance Obligation | 2024 2025 and after Total RMB RMB RMB Revenue expected to be recognized 412,257 47,864 460,121 |
Business combination under co_2
Business combination under common control (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business combination under common control | |
Schedule of recognized identified assets acquired and liabilities assumed | January 20, 2022 Identifiable intangible assets acquired: - Platform content 113,468 - Trademark 35,060 - Technology 7,650 Deferred tax liabilities (26,550) Goodwill (Note 11) 444,086 Total cash consideration* 573,714 *The global mobile application service provider was acquired at a consideration of US$90 million (equivalent to RMB573,714) in cash. |
Schedule of revenue and net loss of acquiree | For the period from For the year ended January 20, 2022 to December 31, 2023 December 31, 2022 Revenue 61,431 43,889 Net loss (4,551) (61,017) |
Schedule of carrying amounts of assets including goodwill, liabilities and equity of acquiree | Acquisition date December 31, 2022 Total assets 611,533 645,993 Total liabilities (38,848) (79,974) Net assets 572,685 566,019 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents | |
Schedule of Cash and Cash Equivalents Balance | December 31, 2022 December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB 246,786 246,786 220,876 220,876 US$ 52,954 368,802 35,957 254,669 SGD 15,026 77,877 6,658 35,802 Others (i) N/A 626 N/A 626 Total 694,091 511,973 (i) As of December 31, 2022 and 2023, the other currencies consist of Hong Kong Dollar, Euro and Japanese Yen. |
Short-term deposits and long-_2
Short-term deposits and long-term deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-term deposits and long-term deposits | |
Schedule for short-term deposits and long-term deposits | December 31, 2022 December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB 3,676,450 3,676,450 1,185,000 1,185,000 US$ 767,000 5,341,848 800,000 5,666,160 Total 9,018,298 6,851,160 December 31, 2022 December 31, 2023 RMB RMB Amount equivalent Amount equivalent RMB — — 2,100,000 2,100,000 US$ 154,000 1,072,548 64,000 453,293 Total 1,072,548 2,553,293 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net | |
Schedule of Accounts Receivable, Net | December 31, 2022 2023 RMB RMB Accounts receivable, gross 86,543 79,975 Less: credit loss provision (2,303) (15,717) Accounts receivable, net 84,240 64,258 |
Schedule of Credit Loss Provision | For the years ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year (4,449) (2,296) (2,303) Current year provision (715) (993) (13,888) Current year reversal 2,868 986 474 Balance at end of the year (2,296) (2,303) (15,717) |
Prepayments and other current_2
Prepayments and other current assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other current assets, net | |
Schedule of Prepayments and Other Current Assets, Net | December 31, 2022 2023 RMB RMB Input value-added tax to be deducted 258,650 241,682 Interest receivable 174,333 198,531 Prepayments to vendors and content providers 154,207 94,980 Others 50,188 21,307 Less: credit loss provision — (65) Total 637,378 556,435 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments. | |
Schedule of Investments | December 31, 2022 2023 RMB RMB Equity investments without readily determinable fair values (i) 522,139 323,332 Debt investments (ii) 384,076 428,512 906,215 751,844 (i) Equity investments without readily determinable fair values include investment in equity securities of private investee companies over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock. In 2022 and 2023, the Group acquired equity interests in a number of privately-held investee companies for a total consideration of RMB118,801 and RMB68,332 respectively. In 2023, RMB68,000 was reclassified to an available-for-sale debt investment due to the amendment of shareholder agreement which changed the character of investment to a debt investment The Group used the measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. Based on ASU 2016-01, entities that elect the measurement alternative will report changes in the carrying value of the equity investments in current earnings. If the measurement alternative is used, changes in the carrying value of the equity investment will be recognized whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer, and impairment charges will be recorded when any impairment indicators are noted and the fair value is lower than the carrying value. The Group, with the assistance of an independent valuation expert, assessed for impairment of certain investments as of the balance sheet date and recognized RMB55,201 and RMB210,813 in impairment charges for equity investments without readily determinable fair value for the years ended December 31, 2022 and 2023. The Group’s impairment assessments were triggered as a result of the weak financial performance of certain investees. In the circumstances and as part of management’s assessments, the Group, used unobservable Level 3 inputs including (i) a selection of price-to-sales multiples of comparable companies and multiples, (ii) probability of the different scenarios assumed under the equity allocation model and (iii) a discount for lack of marketability, and with reference to comparable recent transactions (if available) determined , respective fair values for the investees were lower than the related carrying values. (ii) In 2022, the Group made an investment in debt securities (i.e. certain preferred shares) in a privately-held investee company at a total cash consideration of RMB125,743. In 2023, debt investments increased to RMB80,247, of which RMB68,000 was related to a reclassification from equity investments without readily determinable fair values due to a change in contract terms relating to redemption rights which fundamentally altered the character of the investment. Given that those preferred stocks will become redeemable simply by the passage of time and the intention of the Group is to hold and consider a future disposal, the investments are accounted for as available-for-sale debt investments (see Note 2(l)), wherein the investments are carried at fair value with realized or unrealized gains or losses recorded in accumulative other comprehensive income (loss). For the year ended December 31, 2023, considering the prolonged business performance of these investments, the quality of the investments’ credit and other adverse conditions, the Company performed a quantitative assessment with the assistance of an independent appraiser. Based on the assessment, the Company recognized a credit impairment in the aggregated amount of RMB14,987 which was reported in net income, and the fair value change associated with the non-credit losses amounted to RMB20,824, which was reported in other comprehensive income (loss). |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Schedule of changes in the carrying amount of goodwill | December 31, 2022 2023 RMB RMB Balance at the beginning of the year — 449,357 Goodwill arising from the acquisition during the year(Note 4) 444,086 — Impairment (34,640) — Foreign currency translation adjustments 39,911 7,619 Balance at the end of the year 449,357 456,976 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment, net | |
Schedule of Property and equipment, net | December 31, 2022 2023 RMB RMB Gross carrying amount Servers, computers and equipment 271,692 284,157 Construction in progress 97,786 248,788 Leasehold improvements 32,913 32,387 Others 13,700 12,045 Total 416,091 577,377 Less: accumulated depreciation Servers, computers and equipment (181,706) (210,557) Construction in progress (24,957) (30,536) Others (8,535) (9,519) Total (215,198) (250,612) Property and equipment, net 200,893 326,765 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets, net | |
Summary of group's Intangible assets, net | December 31, 2022 2023 RMB RMB Gross carrying amount Platform content 123,970 126,072 Trademark 39,436 38,955 License 32,000 32,000 Licensed copyrights of video content 136,130 31,133 Technology and domain name 13,641 13,618 Software 31,246 9,665 Total of gross carrying amount 376,423 251,443 Less: accumulated amortization Platform content (16,234) (34,520) Trademark (4,324) (6,787) License (9,956) (12,089) Licensed copyrights of video content (110,182) (25,380) Technology and domain name (4,715) (7,051) Software (23,911) (3,877) Total accumulated amortization (169,322) (89,704) Intangible assets, net 207,101 161,739 |
Schedule of estimated amortization expenses | Amortization expense Year ended December 31, of intangible assets RMB 2024 34,736 2025 27,602 2026 24,485 2027 24,276 2028 24,276 |
Prepayments and other non-cur_2
Prepayments and other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other non-current assets | |
Schedule of Prepayments and other non-current assets | December 31, 2022 2023 RMB RMB Interest receivables 10,532 78,440 Prepayments to vendors and content providers 84,241 58,023 Refundable lease deposits 7,788 6,895 Others 8,313 762 Total 110,874 144,120 |
Advances from customers and d_2
Advances from customers and deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Advances from customers and deferred revenue | |
Advances from customers and deferred revenue | December 31, 2022 2023 RMB RMB Deferred revenue, current 421,062 394,120 Advances from customers 25,819 18,137 Total current advances from customers and deferred revenue 446,881 412,257 Deferred revenue, non-current 73,354 47,864 Total non-current deferred revenue 73,354 47,864 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued liabilities and other current liabilities | |
Schedule of accrued liabilities and other current liabilities | December 31, 2022 2023 RMB RMB Revenue sharing fees 928,756 810,718 Salaries and welfare 156,152 172,498 Marketing and promotion expenses 110,159 107,709 Bandwidth costs 120,849 87,818 License fees and content cost 122,033 86,662 Payable for construction in progress 11,981 61,016 Other taxes payable 25,044 32,154 Deposits from content providers, suppliers and advertising customers 35,967 18,867 Others 83,008 97,385 Total 1,593,949 1,474,827 |
Cost of revenues (Tables)
Cost of revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cost of revenues | |
Schedule of cost of revenues | For the year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue sharing fees and content costs 8,374,555 7,535,690 5,378,413 Bandwidth costs 713,672 537,921 360,660 Salaries and welfare 322,604 288,141 241,243 Payment handling costs 151,913 100,367 64,665 Share-based compensation 56,629 31,955 16,137 Others 131,787 116,652 118,007 Total 9,751,160 8,610,726 6,179,125 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxation | |
Schedule of (loss) income before income tax benefits | Income (loss) before income tax expenses for the years ended December 31, 2021, 2022 and 2023 were taxed within the following jurisdictions: For the year ended December 31, 2021 2022 2023 RMB RMB RMB PRC entities 360,160 (492,143) (406,503) Non-PRC entities (100,641) (30,646) 215,199 Total 259,519 (522,789) (191,304) |
Schedule of current and deferred portion of income tax (benefits) expenses included in the consolidated statements of comprehensive income | The current and deferred portion of income tax expenses included in the consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 are as follows: For the year ended December 31, 2021 2022 2023 RMB RMB RMB Income tax expenses applicable to China operations Current income tax expenses 16,046 — — Deferred income tax expenses 28,119 19,987 — Subtotal income tax expenses applicable to China operations 44,165 19,987 — Income tax expenses applicable to Non-PRC operations Current income tax expenses 7,056 6,864 17,222 Deferred income tax expenses/(benefits) 4,006 (2,487) (4,007) Subtotal income tax expenses applicable to Non-PRC operations 11,062 4,377 13,215 Total income tax expenses 55,227 24,364 13,215 |
Schedule of reconciliation of total tax expenses computed by applying the respective statutory income tax rate to pre-tax income | The reconciliation between the statutory income tax rate and the effective tax rate is as follows: For the year ended December 31, 2021 2022 2023 PRC Statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of tax holiday and preferential tax benefits (15.6) % (8.4) % (19.1) % Effect of varying tax rates available in different jurisdictions (i) (0.7) % 2.0 % 22.8 % Permanent differences (ii) 19.0 % (6.3) % (10.3) % Change in valuation allowance 10.7 % (27.8) % (58.7) % Effect of Super Deduction available to the Group (17.1) % 10.8 % 33.4 % Effective income tax rate 21.3 % (4.7) % (6.9) % Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) (0.11) 0.28 0.28 (i) For the years ended December 31, 2021, 2022 and 2023, the effect of varying tax rates in different jurisdictions is mainly driven by the interest income derived from short-term deposits and long-term deposits which are subject to an income tax rate of 0% under the tax laws of Cayman Islands, partially offset by the losses arising from overseas business which is subject to an income tax rate of 17% under the tax laws of Singapore. (ii) Permanent differences mainly arise from expenses not deductible for tax purposes including primarily share-based compensation costs and expenses incurred by subsidiaries and VIEs. |
Schedule of tax effects of temporary differences that give rise to deferred tax asset balances | The tax effects of temporary differences that give rise to the deferred tax asset balances as of December 31, 2022 and 2023 are as follows: December 31, 2022 2023 RMB RMB Tax loss carried forwards 296,987 387,083 Impairment loss of investments 7,271 29,570 Unrealized profit arising from elimination of inter-company transactions 5,424 6,326 Deferred revenue 2,408 2,302 Others 4,379 3,428 316,469 428,709 Less: Valuation allowance (i) (316,469) (428,709) Total deferred tax assets — — Deferred tax liabilities Identifiable intangible assets arising from the Acquisition (25,380) (21,784) Unrealized gains on investments (20,533) (20,533) Total deferred tax liabilities (45,913) (42,317) Net deferred tax liabilities (45,913) (42,317) (i) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowances as of December 31, 2022 and 2023 were provided for net operating loss carry forwards, because such deferred tax assets are not more likely than not to be realized based on the Group’s estimate of the future taxable income to be derived by the subsidiaries. If events including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry forwards; and (iii) tax planning strategies occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. |
Schedule of valuation allowance for deferred tax assets | Movement of valuation allowance For the year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year 143,431 171,236 316,469 Additions 42,252 146,749 114,815 Reversals/write-off (14,447) (1,516) (2,575) Balance at end of the year 171,236 316,469 428,709 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based compensation | |
Schedule of share based compensation stock options activity | Weighted Weighted average Aggregate average remaining intrinsic Number of exercise contractual life value options price (US$) (years) (US$) As of December 31, 2020 792,740 2.5500 6.61 13,778 Forfeited — Exercised (533,425) 2.5500 As of December 31, 2021 259,315 2.5500 5.60 1,138 Forfeited — Exercised (133,313) 2.5500 As of December 31, 2022 126,002 2.5500 4.60 176 Forfeited — Exercised (7,000) 2.5500 As of December 31, 2023 119,002 2.5500 3.60 132 Expected to vest at December 31, 2023 — Exercisable as of December 31, 2023 119,002 2.5500 3.60 132 |
Share based payment award stock options valuation assumptions | 2018 Weighted average fair value per option granted US$ 5.2130 Weighted average exercise price US$ 2.47 Risk-free interest rate (1) 2.83 % Expected term (in year) (2) 10 Expected volatility (3) 55 % Dividend yield (4) — (1) The risk-free interest rate of periods within the contractual life of the share option is based on the China Government Bond yield as at the valuation dates. (2) The expected term is the contract life of the option. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The Company has no history or expectation of paying dividend on its ordinary shares. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected term of the option. |
Summary of restricted share units activity | Weighted Number of average restricted grant-date share units fair value (US$) Outstanding, December 31, 2020 6,644,306 17.1506 Granted 3,550,617 13.9339 Forfeited (806,435) 17.9309 Vested (2,547,290) 16.6645 Outstanding, December 31, 2021 6,841,198 15.5702 Granted 5,084,817 3.1233 Forfeited (1,731,659) 13.4427 Vested (2,921,887) 14.4987 Outstanding, December 31, 2022 7,272,469 7.8046 Granted 2,787,407 2.8824 Forfeited (1,365,256) 7.2654 Vested (3,546,222) 8.5540 Outstanding, December 31, 2023 5,148,398 4.7664 Expected to vest at December 31, 2023 4,879,173 4.7731 |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net income (loss) per share | |
Schedule of basic and diluted net income per share | For the year ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Net income (loss) 583,499 (547,673) (204,519) Numerator for basic and diluted net income (loss) per share 583,499 (547,673) (204,519) Denominator: Denominator for basic calculation—weighted average number of Class A and Class B ordinary shares outstanding 238,198,117 241,437,842 243,025,428 —Diluted effect of share options 497,861 — — —Diluted effect of restricted share units 3,094,467 — — Denominator for diluted calculation 241,790,445 241,437,842 243,025,428 Net income (loss) per ordinary share —Basic 2.45 (2.27) (0.84) —Diluted 2.41 (2.27) (0.84) Net income (loss) per ADS* —Basic 2.45 (2.27) (0.84) —Diluted 2.41 (2.27) (0.84) * Each ADS represents one Class A ordinary share. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Schedule of Significant Related Party Transactions | For the year ended December 31, 2021 2022 2023 RMB RMB RMB Acquisition under common control (i) — — 574,826 Content costs charged by Tencent (ii) 485,988 539,451 249,536 Operation support services provided by Tencent 370,393 225,808 142,372 Advertising, sub-licensing and other revenues from Tencent 80,302 22,073 118,844 Disposal gain of an investment (iii) 360,589 — — Others 14,617 12,867 6,422 (i) In December 2023, the Company acquired a global mobile application service provider from a fellow subsidiary of Tencent for an aggregate cash consideration of RMB 574,826 , of which RMB 546,084 has been paid by the Company as of December 31, 2023. (ii) In April 2021, the Group entered into a related party transaction with a fellow subsidiary of Tencent to purchase an exclusive license for broadcasting League of Legends matches during the period from 2021 to 2025, with a total consideration of RMB 2,013 million. In January 2023, the Group has entered into a supplemental agreement to the above-mentioned agreement with Tencent to update the authorised right, licensed scope and total consideration (Note 26). (iii) In 2018, the Group invested as one of the limited partners with significant influence in an investment fund (the “Fund”) which owns an equity interest in an online game company, which was accounted for as an equity investment. For the year ended December 31, 2021, the Group disposed of its interest (through sales to two separate parties) in the Fund with a disposal gain of RMB 378,679 recognized, of which RMB 360,589 was related to the transaction with an entity owned by Tencent. For the year ended December 31, 2021 2022 2023 RMB RMB RMB Operation support services provided by JOYY 2,543 351 468 Purchase of services by JOYY on behalf of Huya 268 502 — For the year ended December 31, 2021 2022 2023 RMB RMB RMB Content costs and revenue sharing fees charged by Tencent and Huya’s related parties 102,311 100,627 61,272 Advertising, sub-licensing and other revenues from Tencent and Huya’s related parties 188,209 13,072 23,902 Others 21,013 18,213 29,178 |
Schedule of Amounts Due from/to Related Parties | December 31, 2022 2023 RMB RMB Amounts due from related parties Tencent 44,168 147,776 Others 15,836 1,089 Less: credit loss provision (302) (217) Total 59,702 148,648 Amounts due to related parties Tencent 93,574 141,743 Others 40,072 35,971 Total 133,646 177,714 |
Schedule of Allowance for Credit Loss Provision Related to Amounts Due from Related Parties | For the years ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year (299) (393) (302) Current year provision (387) (139) (219) Current year reversal 293 230 304 Balance at end of the year (393) (302) (217) |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair value measurements | |
Summary of Financial Instruments Measured at Fair Value on Recurring Basis | As of December 31, 2022 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Short-term investments (i) — 3,117 — 3,117 Available-for-sale debt investments (ii) — — 384,076 384,076 As of December 31, 2023 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Available-for-sale debt investments (ii) — — 428,512 428,512 (i) Short-term investments represent the investments issued by commercial banks and financial institution with a variable interest rate indexed to the performance of underlying assets within one year. For the instruments whose fair values are estimated based on quoted prices of similar products provided by banks at the end of each period, the Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. (ii) Available-for-sale debt investments are investments made by the Group without readily determinable fair values as set out in Note 10, which were categorized as Level 3 in the fair value hierarchy. These investments were valued based on a model utilizing unobservable inputs requiring significant management judgment and estimation. The Company uses a combination of valuation methodologies, including income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the pricing of recent rounds of financing of the investees, future cash flow forecasts, liquidity factors and multiples of a selection of comparable companies. |
Summary of roll forward of Level 3 investments | Total Fair value of Level 3 investments as at December 31, 2021 157,160 New additions 125,743 The change in fair value of the investments 101,173 Fair value of Level 3 investments as at December 31, 2022 384,076 New additions 80,247 Credit losses provisions (14,987) The change in fair value of the investments (20,824) Fair value of Level 3 investments as at December 31, 2023 428,512 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Summary of Lease Cost | For the year ended December 31, 2021 2022 2023 RMB RMB RMB Operating lease expense 40,001 44,754 41,126 Short-term lease expense 16,438 13,543 12,730 Total lease expense 56,439 58,297 53,856 Weighted-average remaining lease term (in years) – operating leases 2.7 Weighted-average discount rate – operating leases 4.8 % |
Summary of Future Minimum Lease Payments | As of December 31, 2023, future minimum lease payments under non-cancellable operating lease agreements for which the Group has recognized operating lease right-of-use assets and liabilities were as follows: For the year ending December 31, Future minimum payments RMB 2024 32,650 2025 30,260 2026 22,330 Total undiscounted cash flows 85,240 Less: imputed interest (5,339) Total 79,901 |
Summary of Operating Lease Payments | For the year end December 31, 2021 2022 2023 RMB RMB RMB Cash paid for operating leases 43,024 38,035 34,090 Lease liabilities arising from obtaining right-of-use assets 26,077 13,567 74,876 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases | As of December 31, 2023, future minimum payments under non-cancelable agreements consist of the following, Operating commitments RMB 2024 4,913 2025 4,680 2026 3,650 13,243 |
Organization and principal ac_3
Organization and principal activities - Additional Information (Detail) ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Dec. 22, 2023 USD ($) | Dec. 22, 2023 CNY (¥) | May 06, 2023 shares | May 05, 2023 shares | Jan. 20, 2022 USD ($) | Jan. 20, 2022 CNY (¥) | Apr. 03, 2020 shares | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Apr. 30, 2019 USD ($) shares | May 31, 2018 USD ($) shares | Dec. 31, 2023 shares | Dec. 31, 2022 shares | Dec. 31, 2021 shares | |
Tencent Holdings Limited | ||||||||||||||
Organization and principal activities | ||||||||||||||
Percentage of common shares fully diluted | 50% | |||||||||||||
ADS | ||||||||||||||
Organization and principal activities | ||||||||||||||
Number of ADS issued and sold in IPO ,in shares | 13,600,000 | 17,250,000 | ||||||||||||
Issuance of ordinary shares | $ | $ 314 | $ 176 | ||||||||||||
Class A-1 Preferred Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Number of shares converted into ordinary shares | 17,647,058 | |||||||||||||
Class A-2 Preferred Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Number of shares converted into ordinary shares | 4,411,765 | |||||||||||||
Class B-2 Preferred Shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Number of shares converted into ordinary shares | 64,488,235 | |||||||||||||
Class B ordinary shares | ||||||||||||||
Organization and principal activities | ||||||||||||||
Number of shares converted into ordinary shares | 0 | 690,000 | 1,280,804 | |||||||||||
Class B ordinary shares | Tencent Holdings Limited | ||||||||||||||
Organization and principal activities | ||||||||||||||
Transfer of shares | 38,374,463 | |||||||||||||
Shares outstanding | 150,386,517 | |||||||||||||
Percentage of total shares issued and outstanding | 62.70% | |||||||||||||
Percentage of total voting power of company | 94.40% | |||||||||||||
Number of shares transferred | 16,523,819 | |||||||||||||
Class B ordinary shares | JOYY Inc | ||||||||||||||
Organization and principal activities | ||||||||||||||
Number of ADS issued and sold in IPO ,in shares | 4,800,000 | |||||||||||||
Number of shares converted into ordinary shares | 4,800,000 | |||||||||||||
Guangzhou Huya Information Technology Company Limited | Guangzhou Huya Technology Co Ltd | Exclusive Business Cooperation Agreement | ||||||||||||||
Organization and principal activities | ||||||||||||||
Period of prior written notice required to terminate the agreement | 30 days | |||||||||||||
Term of agreement | 10 years | |||||||||||||
Extended term | 10 years | |||||||||||||
Guangzhou Huya Information Technology Company Limited | Guangzhou Huya Technology Co Ltd | Exclusive Purchase Option Agreement | ||||||||||||||
Organization and principal activities | ||||||||||||||
Period of prior written notice required to terminate the agreement | 30 days | |||||||||||||
Term of agreement | 10 years | |||||||||||||
Extended term | 10 years | |||||||||||||
Guangzhou Huya Information Technology Company Limited | Guangzhou Huya Technology Co Ltd | Power Of Attorney | ||||||||||||||
Organization and principal activities | ||||||||||||||
Period of prior written notice required to terminate the agreement | 30 days | |||||||||||||
Term of agreement | 10 years | |||||||||||||
Extended term | 1 year | |||||||||||||
Guangzhou Huya Information Technology Company Limited | Guangzhou Huya Technology Co Ltd | Shareholder Voting Rights Proxy Agreement | ||||||||||||||
Organization and principal activities | ||||||||||||||
Period of prior written notice required to terminate the agreement | 30 days | |||||||||||||
Term of agreement | 10 years | |||||||||||||
Extended term | 1 year | |||||||||||||
Guangzhou Huya Information Technology Company Limited | Guangzhou Huya Technology Co Ltd | Exclusive Option Agreement | ||||||||||||||
Organization and principal activities | ||||||||||||||
Term of agreement | 10 years | |||||||||||||
A global mobile application service provider | ||||||||||||||
Organization and principal activities | ||||||||||||||
Percentage of voting interests acquired | 100% | 100% | 100% | 100% | 100% | |||||||||
Aggregate cash consideration | $ 81 | ¥ 574,826 | $ 90 | ¥ 573,714 | $ 81 | ¥ 574,826 |
Organization and principal ac_4
Organization and principal activities - Schedule of Details of the Subsidiaries, VIEs and VIE's Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Huya Limited | |
Subsidiaries and Variable Interest Entity | |
Place of incorporation | Hong Kong |
Date of incorporation | Jan. 04, 2017 |
% of direct or indirect economic ownership | 100% |
Principal activities | Investment holding |
Guangzhou Huya Technology Co., Ltd. ("Huya Technology") | |
Subsidiaries and Variable Interest Entity | |
Place of incorporation | PRC |
Date of incorporation | Jun. 16, 2017 |
% of direct or indirect economic ownership | 100% |
Principal activities | Software development |
HUYA PTE. LTD. | |
Subsidiaries and Variable Interest Entity | |
Place of incorporation | Singapore |
Date of incorporation | Jul. 23, 2018 |
% of direct or indirect economic ownership | 100% |
Principal activities | Internet value added services |
Hainan Huya Entertainment Information Technology Co., Ltd. ("Hainan Huya") | |
Subsidiaries and Variable Interest Entity | |
Place of incorporation | PRC |
Date of incorporation | Dec. 04, 2019 |
% of direct or indirect economic ownership | 100% |
Principal activities | Cultural and Creative services |
Guangzhou Huya Information Technology Company Limited | |
Subsidiaries and Variable Interest Entity | |
Place of incorporation | PRC |
Date of incorporation | Aug. 10, 2016 |
% of direct or indirect economic ownership | 100% |
Principal activities | Internet value added services |
Organization and principal ac_5
Organization and principal activities - Schedule of Condensed Consolidated Balance Sheets Data for the VIEs (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Assets | ||||||
Cash and cash equivalents | ¥ 511,973 | $ 72,110 | ¥ 694,091 | |||
Restricted cash | 18,137 | 2,555 | 4,050 | |||
Short-term deposits | 6,851,160 | 964,966 | 9,018,298 | |||
Accounts receivable, net | 64,258 | 9,051 | 84,240 | |||
Prepayments and other current assets | 556,435 | 78,371 | 637,378 | |||
Amounts due from related parties | 148,648 | 20,937 | 59,702 | |||
Investments | 751,844 | 105,895 | 906,215 | |||
Long-term deposits | 2,553,293 | 359,624 | 1,072,548 | |||
Total assets | 12,924,354 | 1,820,358 | 13,793,000 | |||
Deferred revenue and advances from customers | 412,257 | 58,065 | 446,881 | |||
Accrued liabilities and other current liabilities | 1,474,827 | 207,726 | 1,593,949 | |||
Amounts due to related parties | 177,714 | 25,030 | 133,646 | |||
Total liabilities | 2,299,755 | 323,913 | 2,383,609 | |||
Total shareholders' equity | 10,624,599 | $ 1,496,445 | 11,409,391 | [1] | ¥ 10,510,201 | ¥ 9,776,778 |
VIEs | ||||||
Assets | ||||||
Cash and cash equivalents | 7,730 | 14,259 | ||||
Restricted cash | 18,137 | 4,050 | ||||
Short-term deposits | 130,000 | 490,000 | ||||
Accounts receivable, net | 27,795 | 55,305 | ||||
Prepayments and other current assets | 232,364 | 219,716 | ||||
Amounts due from related parties | 147,582 | 45,127 | ||||
Amounts due from Group companies | 954,184 | 1,098,883 | ||||
Investments | 600,096 | 724,110 | ||||
Intangible assets, net | 30,364 | 54,660 | ||||
Long-term deposits | 360,000 | |||||
Other assets | 18,604 | 12,866 | ||||
Total assets | 2,526,856 | 2,718,976 | ||||
Deferred revenue and advances from customers | 445,888 | 502,682 | ||||
Accrued liabilities and other current liabilities | 466,890 | 504,218 | ||||
Amounts due to related parties | 103,055 | 48,277 | ||||
Other liabilities | 32,489 | 26,424 | ||||
Total liabilities | 1,048,322 | 1,081,601 | ||||
Total shareholders' equity | ¥ 1,478,534 | ¥ 1,637,375 | ||||
[1]HUYA Inc. consolidated 2022 statement of changes in shareholders’ equity has been retrospectively adjusted due to the business combination under common control as discussed in Note 2 (d). |
Organization and principal ac_6
Organization and principal activities - Schedule of Condensed Consolidated Statements of Operation Data for the VIEs (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Investments in and Advances to Affiliates | |||||
Income (loss) before income tax expenses | ¥ (191,304) | $ (26,944) | ¥ (522,789) | [1] | ¥ 259,519 |
Share of loss from equity method investments | 0 | 0 | (520) | [1],[2] | 379,207 |
Net income (loss) | (204,519) | $ (28,805) | (547,673) | [1] | 583,499 |
Variable Interest Entity (VIE) [Member] | |||||
Investments in and Advances to Affiliates | |||||
Third-party revenues | 6,686,033 | 8,937,121 | 10,897,479 | ||
Total cost and expenses | (6,746,390) | (9,161,422) | (10,789,307) | ||
Others, net | (94,625) | 55,551 | 195,202 | ||
Income (loss) before income tax expenses | (154,982) | (168,750) | 303,374 | ||
Income tax expenses | (6,801) | (50,374) | |||
Share of loss from equity method investments | (520) | (37) | |||
Net income (loss) | ¥ (154,982) | ¥ (176,071) | ¥ 252,963 | ||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d).[2] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Organization and principal ac_7
Organization and principal activities - Schedule of Condensed Consolidated Cash Flows Data for the VIEs (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Investments in and Advances to Affiliates | |||||
Net cash provided by operating activities | ¥ (32,081) | $ (4,518) | ¥ (400,363) | [1] | ¥ 327,453 |
Net cash (used in)/provided by investing activities | 53,206 | 7,495 | (848,568) | [1] | (1,880,320) |
Net cash provided by/(used in) financing activities | (202,294) | $ (28,493) | 6,049 | [1] | 10,723 |
Variable Interest Entity (VIE) [Member] | |||||
Investments in and Advances to Affiliates | |||||
Net cash provided by operating activities | 56,821 | 379,397 | 1,176,397 | ||
Loans and advances to Group companies | (160,406) | (911,916) | |||
Other investing activities | (49,263) | (720,237) | (197,261) | ||
Net cash (used in)/provided by investing activities | ¥ (49,263) | ¥ (880,643) | ¥ (1,109,177) | ||
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Organization and principal ac_8
Organization and principal activities - Schedule of Condensed Consolidated Statements Data for the VIEs (Parenthetical) (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
VIEs | |||
Investments in and Advances to Affiliates | |||
Outstanding balances for Variable Interest Entity fees Charged | ¥ 0 | ¥ 0 | ¥ 0 |
Service fees receivable from variable interest entity set off against intercompany receivables | 139,000 | 415,000 | 0 |
Wholly foreign-owned enterprise And Other Subsidiaries | |||
Investments in and Advances to Affiliates | |||
Variable Interest Entity Service Fees Charged Amount | 5,530,000 | 6,863,000 | 8,664,000 |
Payment of Variable Interest Entity Service Fees | ¥ 5,391,000 | ¥ 6,433,000 | ¥ 8,664,000 |
Principal accounting policies -
Principal accounting policies - Additional Information (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2023 CNY (¥) segment item shares | Dec. 31, 2023 USD ($) segment item shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Mar. 19, 2024 USD ($) $ / shares | Dec. 29, 2023 $ / ¥ | Mar. 19, 2023 USD ($) | ||
Significant Accounting Policies | ||||||||
Rate of translations of amounts from RMB into US$ | $ / ¥ | 7.0999 | |||||||
Equity method investment, other than temporary impairment | ¥ 0 | ¥ 414,000 | ¥ 0 | |||||
Impairment loss of investments | ¥ 210,813,000 | 55,201,000 | 0 | |||||
Number of reporting units | item | 2 | 2 | ||||||
Impairment of goodwill | ¥ 0 | $ 0 | 34,640,000 | [1],[2] | 0 | |||
Impairment of long-lived assets | ¥ 0 | 0 | 0 | |||||
Noble member status duration | 1 month | 1 month | ||||||
Revenue from barter transaction | ¥ 0 | |||||||
Deferred revenue, revenue recognized | 446,881,000 | 459,509,000 | 485,878,000 | |||||
Revenue expected to be recognized from remaining performance obligations | 460,121,000 | |||||||
Employee social security and welfare benefits | 194,779,000 | 227,008,000 | 187,200,000 | |||||
Interest and penalties recognized associated with uncertain tax positions | 0 | 0 | 0 | |||||
Unrecognized uncertain tax positions | ¥ 0 | 0 | ||||||
Minimum percentage appropriation to general reserve fund required | 10% | |||||||
Reserve level threshold for mandatory appropriation requirement (as a percent) | 50% | 50% | ||||||
Minimum percentage appropriation to statutory surplus fund required | 10% | |||||||
Surplus fund threshold for mandatory appropriation requirement (as a percent) | 50% | 50% | ||||||
Dividends | ¥ 0 | 0 | 0 | |||||
Expected dividends payable | $ | $ 150,000 | |||||||
Number of reportable segment | segment | 1 | 1 | ||||||
Allocated share-based compensation expense | ¥ 78,265,000 | 156,478,000 | 289,705,000 | |||||
Indefinitely lived intangible assets net | 0 | 0 | ||||||
Subsequent event | ||||||||
Significant Accounting Policies | ||||||||
Expected dividends payable | $ | $ 150,000 | |||||||
Statutory reserves | ||||||||
Significant Accounting Policies | ||||||||
Appropriations for the general reserve funds and statutory surplus fund | ¥ 0 | ¥ 0 | ¥ 0 | |||||
Maximum | ||||||||
Significant Accounting Policies | ||||||||
Noble member status duration | 24 months | 24 months | ||||||
Ordinary Shares | Subsequent event | ||||||||
Significant Accounting Policies | ||||||||
Special cash dividend per share | $ / shares | $ 0.66 | |||||||
American Depository Shares | Subsequent event | ||||||||
Significant Accounting Policies | ||||||||
Special cash dividend per share | $ / shares | $ 0.66 | |||||||
Performance Shares | ||||||||
Significant Accounting Policies | ||||||||
Share-based compensation arrangement by share-based payment award, other than options granted | shares | 0 | 0 | 0 | 0 | ||||
Allocated share-based compensation expense | ¥ 0 | ¥ 0 | ¥ 0 | |||||
Research and development expenses | ||||||||
Significant Accounting Policies | ||||||||
Capitalized costs | 0 | 0 | 0 | |||||
Severance costs | 34,000,000 | 53,595,000 | 0 | |||||
Allocated share-based compensation expense | 40,679,000 | $ 5,730 | 67,242,000 | 135,316,000 | ||||
Sales and marketing expenses | ||||||||
Significant Accounting Policies | ||||||||
Advertising and market promotion expenses | 348,235,000 | 412,553,000 | 655,957,000 | |||||
Allocated share-based compensation expense | ¥ 2,842,000 | $ 400 | ¥ 4,477,000 | ¥ 8,318,000 | ||||
Advertising Revenue | Maximum | ||||||||
Significant Accounting Policies | ||||||||
Advertising revenues contract term | 3 months | 3 months | ||||||
Period over which payments are due | 3 months | 3 months | ||||||
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Principal accounting policies_3
Principal accounting policies - Schedule of Property and Equipment Estimated Useful Lives and Residual Rate (Detail) | Dec. 31, 2023 |
Servers, computers and equipment | |
Property, Plant and Equipment | |
Residual rate | 0% |
Servers, computers and equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 3 years |
Servers, computers and equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 4 years |
Leasehold improvements | |
Property, Plant and Equipment | |
Residual rate | 0% |
Office furnitures and others | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 3 years |
Residual rate | 0% |
Office furnitures and others | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 5 years |
Residual rate | 5% |
Principal accounting policies_4
Principal accounting policies - Schedule of Amortization of Finite-Lived Intangible Assets Computed Using the Straight-Line Method Over the Following Estimated Useful Lives (Detail) | Dec. 31, 2023 |
Licensed Copyrights of video content | Minimum | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 1 year |
Licensed Copyrights of video content | Maximum | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 4 years |
License | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 15 years |
Software | Minimum | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 1 year |
Software | Maximum | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 10 years |
Domain name | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 15 years |
Trademarks | Minimum | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 5 years |
Trademarks | Maximum | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 11 years |
Platform content | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 7 years |
Technology | |
Indefinite-lived Intangible Assets | |
Estimated useful lives | 4 years |
Principal accounting policies_5
Principal accounting policies - Disaggregation of Revenue (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | [1] | Dec. 31, 2021 CNY (¥) | |
Disaggregation of Revenue | |||||
Total sales | ¥ 6,994,328 | $ 985,131 | ¥ 9,264,351 | ¥ 11,351,446 | |
Live streaming | |||||
Disaggregation of Revenue | |||||
Total sales | 6,450,782 | 908,574 | 8,195,907 | 10,186,204 | |
Advertising and others | |||||
Disaggregation of Revenue | |||||
Total sales | ¥ 543,546 | $ 76,557 | ¥ 1,068,444 | ¥ 1,165,242 | |
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Principal accounting policies_6
Principal accounting policies - Summary of Revenue Related to Performance Obligation (Detail) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | ¥ 460,121 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period in which remaining performance obligation is expected to be recognized (in months) | 12 months |
Revenue expected to be recognized | ¥ 412,257 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period in which remaining performance obligation is expected to be recognized (in months) | 12 months |
Revenue expected to be recognized | ¥ 47,864 |
Business combination under co_3
Business combination under common control - The acquisition in January 2022 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 22, 2023 | Dec. 31, 2022 CNY (¥) | Jan. 20, 2022 CNY (¥) |
Business combination under common control | |||||
Goodwill | ¥ 456,976 | $ 64,364 | ¥ 449,357 | ||
A global mobile application service provider | |||||
Business combination under common control | |||||
Percentage of voting interests acquired | 100% | 100% | 100% | ||
A wholly-owned subsidiary of Tencent | A global mobile application service provider | |||||
Business combination under common control | |||||
Percentage of voting interests acquired | 100% | ||||
Deferred tax liabilities | ¥ (26,550) | ||||
Goodwill | 444,086 | ||||
Total cash consideration | 573,714 | ||||
A wholly-owned subsidiary of Tencent | A global mobile application service provider | Platform content | |||||
Business combination under common control | |||||
Identifiable intangible assets acquired | 113,468 | ||||
A wholly-owned subsidiary of Tencent | A global mobile application service provider | Trademarks | |||||
Business combination under common control | |||||
Identifiable intangible assets acquired | 35,060 | ||||
A wholly-owned subsidiary of Tencent | A global mobile application service provider | Technology | |||||
Business combination under common control | |||||
Identifiable intangible assets acquired | ¥ 7,650 |
Business combination under co_4
Business combination under common control - Acquisition Of global mobile application service provider from Tencent (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||
Dec. 22, 2023 CNY (¥) | Dec. 22, 2023 USD ($) | Jan. 20, 2022 CNY (¥) | Jan. 20, 2022 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | ||
Business combination under common control | |||||||||||||
Net loss | ¥ (204,519) | $ (28,805) | ¥ (547,673) | [1] | ¥ 583,499 | ||||||||
Total assets | ¥ 12,924,354 | ¥ 13,793,000 | 12,924,354 | 13,793,000 | $ 1,820,358 | ||||||||
Total liabilities | ¥ (2,299,755) | (2,383,609) | (2,299,755) | (2,383,609) | $ (323,913) | ||||||||
Adjustment to APIC due to acquisition of entity under common control | (574,826) | 573,714 | |||||||||||
A global mobile application service provider | |||||||||||||
Business combination under common control | |||||||||||||
Revenue | 43,889 | 61,431 | |||||||||||
Net loss | (61,017) | ¥ (4,551) | |||||||||||
Total assets | ¥ 611,533 | 645,993 | 645,993 | ||||||||||
Total liabilities | (38,848) | (79,974) | (79,974) | ||||||||||
Net assets | ¥ 572,685 | ¥ 566,019 | ¥ 566,019 | ||||||||||
A global mobile application service provider | |||||||||||||
Business combination under common control | |||||||||||||
Percentage of voting interests acquired | 100% | 100% | 100% | 100% | |||||||||
Aggregate cash consideration | ¥ 574,826 | $ 81,000 | ¥ 573,714 | $ 90,000 | ¥ 574,826 | $ 81,000 | |||||||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Cash and cash equivalents - Sch
Cash and cash equivalents - Schedule of Cash and Cash Equivalents Balance (Detail) ¥ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 SGD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 SGD ($) |
Cash and cash equivalents | ||||||
Cash and cash equivalents | ¥ 511,973 | $ 72,110 | ¥ 694,091 | |||
Others | ||||||
Cash and cash equivalents | ||||||
Cash and cash equivalents | 626 | 626 | ||||
RMB | ||||||
Cash and cash equivalents | ||||||
Cash and cash equivalents | 220,876 | 246,786 | ||||
US$ | ||||||
Cash and cash equivalents | ||||||
Cash and cash equivalents | 254,669 | $ 35,957 | 368,802 | $ 52,954 | ||
SGD | ||||||
Cash and cash equivalents | ||||||
Cash and cash equivalents | ¥ 35,802 | $ 6,658 | ¥ 77,877 | $ 15,026 |
Restricted cash - Additional In
Restricted cash - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Restricted cash | |||
Restricted cash | ¥ 18,137 | $ 2,555 | ¥ 4,050 |
Short-term deposits and long-_3
Short-term deposits and long-term deposits (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) |
Short-term deposits and long-term deposits | ||||
Short-term deposits | ¥ 6,851,160 | $ 964,966 | ¥ 9,018,298 | |
Long-term deposits | 2,553,293 | 359,624 | 1,072,548 | |
RMB | ||||
Short-term deposits and long-term deposits | ||||
Short-term deposits | 1,185,000 | 3,676,450 | ||
Long-term deposits | 2,100,000 | 2,100,000 | ||
US$ | ||||
Short-term deposits and long-term deposits | ||||
Short-term deposits | 5,666,160 | 800,000 | 5,341,848 | $ 767,000 |
Long-term deposits | ¥ 453,293 | $ 64,000 | ¥ 1,072,548 | $ 154,000 |
Accounts receivable, net - (Det
Accounts receivable, net - (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Accounts receivable, net | |||||
Accounts receivable, gross | ¥ 79,975 | ¥ 86,543 | |||
Less: credit loss provision | (15,717) | (2,303) | ¥ (2,296) | ¥ (4,449) | |
Accounts receivable, net | ¥ 64,258 | $ 9,051 | ¥ 84,240 |
Accounts receivable, net - Cred
Accounts receivable, net - Credit loss provision (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts receivable, net | |||
Balance at beginning of the year | ¥ (2,303) | ¥ (2,296) | ¥ (4,449) |
Current year provision | (13,888) | (993) | (715) |
Current year reversal | 474 | 986 | 2,868 |
Balance at end of the year | ¥ (15,717) | ¥ (2,303) | ¥ (2,296) |
Prepayments and other current_3
Prepayments and other current assets, net - (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Prepayments and other current assets, net | |||
Input value-added tax to be deducted | ¥ 241,682 | ¥ 258,650 | |
Interest receivable | 198,531 | 174,333 | |
Prepayments to vendors and content providers | 94,980 | 154,207 | |
Others | 21,307 | 50,188 | |
Less: credit loss provision | (65) | ||
Total | ¥ 556,435 | $ 78,371 | ¥ 637,378 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments. | ||
Equity investments without readily determinable fair values | ¥ 323,332 | ¥ 522,139 |
Debt investments | 428,512 | 384,076 |
Total investments | ¥ 751,844 | ¥ 906,215 |
Investments - Schedule of Inv_2
Investments - Schedule of Investments (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Investments | |||||
Consideration paid for equity investments without readily determinable fair values | ¥ 68,332 | ¥ 118,801 | |||
Reclassified from equity investments without readily determinable fair values to available-for-sale debt investments | 68,000 | ||||
Impairment charges for equity investments without readily determinable fair value | 210,813 | 55,201 | ¥ 0 | ||
Consideration paid for equity method investments | 125,743 | ||||
Debt investments | 428,512 | 384,076 | |||
Credit impairment related to available-for-sale debt investments | 14,987 | ||||
Unrealized securities holding losses | (20,824) | $ (2,933) | ¥ 85,997 | [1] | ¥ 0 |
Debt Investment | |||||
Investments | |||||
Reclassified from equity investments without readily determinable fair values to available-for-sale debt investments | 68,000 | ||||
Debt investments | ¥ 80,247 | ||||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Goodwill - Changes in the carry
Goodwill - Changes in the carrying amount (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Changes in the carrying amount of goodwill | |||||
Balance at the beginning of the year | ¥ 449,357 | ||||
Goodwill arising from the acquisition during the year(Note 4) | ¥ 444,086 | ||||
Impairment | 0 | $ 0 | (34,640) | [1],[2] | ¥ 0 |
Foreign currency translation adjustments | 7,619 | 39,911 | |||
Balance at the end of the year | ¥ 456,976 | $ 64,364 | ¥ 449,357 | ||
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Goodwill | |||||
Impairment of goodwill | ¥ 0 | $ 0 | ¥ 34,640 | [1],[2] | ¥ 0 |
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Property and equipment, net - S
Property and equipment, net - Schedule of Property and equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Statements | |||
Construction in progress | ¥ 248,788 | ¥ 97,786 | |
Leasehold improvements | 32,387 | 32,913 | |
Others | 12,045 | 13,700 | |
Gross carrying amount, total | 577,377 | 416,091 | |
Less: accumulated depreciation | (250,612) | (215,198) | |
Property and equipment, net | 326,765 | $ 46,024 | 200,893 |
Servers Computers and Equipment | |||
Statements | |||
Gross carrying amount, total | 284,157 | 271,692 | |
Less: accumulated depreciation | (210,557) | (181,706) | |
Construction in progress | |||
Statements | |||
Less: accumulated depreciation | (30,536) | (24,957) | |
Others | |||
Statements | |||
Less: accumulated depreciation | ¥ (9,519) | ¥ (8,535) |
Property and equipment, net - A
Property and equipment, net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment, net | |||
Depreciation expense | ¥ 46,803 | ¥ 43,413 | ¥ 49,875 |
Intangible assets, net - Summar
Intangible assets, net - Summary of Group's Intangible Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Statements | |||
Total of gross carrying amount | ¥ 251,443 | ¥ 376,423 | |
Total accumulated amortization | (89,704) | (169,322) | |
Intangible assets, net | 161,739 | $ 22,780 | 207,101 |
Platform content | |||
Statements | |||
Total of gross carrying amount | 126,072 | 123,970 | |
Total accumulated amortization | (34,520) | (16,234) | |
Trademarks | |||
Statements | |||
Total of gross carrying amount | 38,955 | 39,436 | |
Total accumulated amortization | (6,787) | (4,324) | |
License | |||
Statements | |||
Total of gross carrying amount | 32,000 | 32,000 | |
Total accumulated amortization | (12,089) | (9,956) | |
Licensed Copyrights of video content | |||
Statements | |||
Total of gross carrying amount | 31,133 | 136,130 | |
Total accumulated amortization | (25,380) | (110,182) | |
Technology and domain name | |||
Statements | |||
Total of gross carrying amount | 13,618 | 13,641 | |
Total accumulated amortization | (7,051) | (4,715) | |
Software | |||
Statements | |||
Total of gross carrying amount | 9,665 | 31,246 | |
Total accumulated amortization | ¥ (3,877) | ¥ (23,911) |
Intangible assets, net - Additi
Intangible assets, net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, net | |||
Amortization expense | ¥ 54,320 | ¥ 58,599 | ¥ 39,239 |
Intangible assets, net - Schedu
Intangible assets, net - Schedule of Estimated Amortization Expenses (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Intangible assets, net | |
2024 | ¥ 34,736 |
2025 | 27,602 |
2026 | 24,485 |
2027 | 24,276 |
2028 | ¥ 24,276 |
Prepayments and other non-cur_3
Prepayments and other non-current assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Prepayments and other non-current assets | |||
Interest receivables | ¥ 78,440 | ¥ 10,532 | |
Prepayments to vendors and content providers | 58,023 | 84,241 | |
Refundable lease deposits | 6,895 | 7,788 | |
Others | 762 | 8,313 | |
Total | ¥ 144,120 | $ 20,299 | ¥ 110,874 |
Advances from customers and d_3
Advances from customers and deferred revenue (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Advances from customers and deferred revenue | |||
Deferred revenue, current | ¥ 394,120 | ¥ 421,062 | |
Advances from customers | 18,137 | 25,819 | |
Total current advances from customers and deferred revenue | 412,257 | $ 58,065 | 446,881 |
Deferred revenue, non-current | 47,864 | 73,354 | |
Total non-current deferred revenue | ¥ 47,864 | $ 6,742 | ¥ 73,354 |
Accrued liabilities and other_3
Accrued liabilities and other current liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Accrued liabilities and other current liabilities | |||
Revenue sharing fees | ¥ 810,718 | ¥ 928,756 | |
Salaries and welfare | 172,498 | 156,152 | |
Marketing and promotion expenses | 107,709 | 110,159 | |
Bandwidth costs | 87,818 | 120,849 | |
License fees and content cost | 86,662 | 122,033 | |
Payable for construction in progress | 61,016 | 11,981 | |
Other taxes payable | 32,154 | 25,044 | |
Deposits from content providers, suppliers and advertising customers | 18,867 | 35,967 | |
Others | 97,385 | 83,008 | |
Total | ¥ 1,474,827 | $ 207,726 | ¥ 1,593,949 |
Cost of revenues (Details)
Cost of revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Cost of revenues | ¥ 6,179,125 | $ 870,312 | ¥ 8,610,726 | [1] | ¥ 9,751,160 |
Revenue sharing fees and content costs | |||||
Cost of revenues | 5,378,413 | 7,535,690 | 8,374,555 | ||
Bandwidth costs | |||||
Cost of revenues | 360,660 | 537,921 | 713,672 | ||
Salaries and welfare | |||||
Cost of revenues | 241,243 | 288,141 | 322,604 | ||
Payment handling costs | |||||
Cost of revenues | 64,665 | 100,367 | 151,913 | ||
Share-based compensation | |||||
Cost of revenues | 16,137 | 31,955 | 56,629 | ||
Others | |||||
Cost of revenues | ¥ 118,007 | ¥ 116,652 | ¥ 131,787 | ||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Other income - Additional Infor
Other income - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income. | |||
Government grants | ¥ 41,551 | ¥ 148,467 | ¥ 191,723 |
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonrecurring Income | Other Nonrecurring Income | Other Nonrecurring Income |
Taxation - Additional Informati
Taxation - Additional Information (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | 36 Months Ended | 72 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2023 CNY (¥) | Dec. 31, 2025 | |
Income Tax Disclosure [Line Items] | ||||||
Value added tax rate | 6% | 6% | 6% | |||
Income tax rate percentage | 25% | 25% | 25% | |||
Effect of different tax rates available to different jurisdictions | 22.80% | 2% | (0.70%) | |||
Deferred tax liability | ¥ 0 | |||||
Unrecognized tax benefits | ¥ 0 | 0 | ||||
Inland Revenue, Singapore (IRAS) [Member] | Four Years From Two Thousand And Eight [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Period for which under paid taxes may be recovered | 4 years | |||||
Software Enterprise [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 12.50% | |||||
Reduction in tax rate for stated period following the exemption period | 50% | 50% | ||||
High And New Technology Enterprise [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 15% | 15% | ||||
Preferential tax rate | 15% | |||||
Key National Software Enterprise [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 10% | |||||
Encouraged Industrial Enterprises [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential tax rate | 15% | |||||
HONG KONG | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 16.50% | |||||
Taxable income | $ | $ 2 | |||||
Minimum ownership percentage to be held by foreign investors | 25% | |||||
HONG KONG | Taxable income below threshold amount | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 8.25% | |||||
HONG KONG | Taxable income over threshold amount | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 16.50% | |||||
CHINA | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 25% | |||||
Percentage of research and development expenses entitled to claim by enterprise | 100% | 75% | ||||
PRC withholding tax rate | 10% | |||||
Undistributed earnings of subsidiaries | ¥ 2,858,529 | 2,530,069 | ||||
Net tax operating losses from PRC subsidiaries | ¥ 1,418,278 | |||||
CHINA | Software Enterprise [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Exemption period for income tax | 2 years | |||||
CHINA | High And New Technology Enterprise [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Exemption period for income tax | 3 years | |||||
Preferential tax rate | 15% | 15% | ||||
CHINA | VIEs | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 25% | |||||
CHINA | Key National Software Enterprise [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax rate percentage | 10% | |||||
CHINA | Encouraged Industrial Enterprises [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential tax rate | 15% | |||||
SINGAPORE | ||||||
Income Tax Disclosure [Line Items] | ||||||
Effect of different tax rates available to different jurisdictions | 17% | 17% | 17% | |||
Accumulated operating loss carryforwards not subject to expiration | ¥ 919,443 | |||||
Inland Revenue, Hong Kong [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
PRC withholding tax rate | 5% | |||||
CAYMAN ISLANDS | ||||||
Income Tax Disclosure [Line Items] | ||||||
Effect of different tax rates available to different jurisdictions | 0% | 0% | 0% |
Taxation - Schedule of (Loss) I
Taxation - Schedule of (Loss) Income Before Income Tax Benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Taxation | |||||
PRC entities | ¥ (406,503) | ¥ (492,143) | ¥ 360,160 | ||
Non-PRC entities | 215,199 | (30,646) | (100,641) | ||
Income (loss) before income tax expenses | ¥ (191,304) | $ (26,944) | ¥ (522,789) | [1] | ¥ 259,519 |
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portion of Income Tax (Benefits) Expenses Included in the Consolidated Statements of Comprehensive Income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Taxation | |||||
Deferred income tax expenses (benefits) | ¥ (4,007) | $ (564) | ¥ 17,500 | [1] | ¥ 32,125 |
Total income tax expenses | 13,215 | $ 1,861 | 24,364 | [2] | 55,227 |
CHINA | |||||
Taxation | |||||
Current income tax expenses | 16,046 | ||||
Deferred income tax expenses (benefits) | 19,987 | 28,119 | |||
Total income tax expenses | 19,987 | 44,165 | |||
Non Prc [Member] | |||||
Taxation | |||||
Current income tax expenses | 17,222 | 6,864 | 7,056 | ||
Deferred income tax expenses (benefits) | (4,007) | (2,487) | 4,006 | ||
Total income tax expenses | ¥ 13,215 | ¥ 4,377 | ¥ 11,062 | ||
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Taxation - Schedule of Reconcil
Taxation - Schedule of Reconciliation of Total Tax Expenses Computed by Applying the Respective Statutory Income Tax Rate to Pre-Tax Income (Details) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxation | |||
PRC Statutory income tax rate | 25% | 25% | 25% |
Effect of tax holiday and preferential tax benefits | (19.10%) | (8.40%) | (15.60%) |
Effect of varying tax rates available in different jurisdictions | 22.80% | 2% | (0.70%) |
Permanent differences | (10.30%) | (6.30%) | 19% |
Change in valuation allowance | (58.70%) | (27.80%) | 10.70% |
Effect of Super Deduction available to the Group | 33.40% | 10.80% | (17.10%) |
Effective income tax rate | (6.90%) | (4.70%) | 21.30% |
Effect of tax holidays inside the PRC on basic earnings per share/ADS (RMB) | ¥ 0.28 | ¥ 0.28 | ¥ 0.11 |
Taxation - Schedule of Tax Effe
Taxation - Schedule of Tax Effects of Temporary Differences that Give Rise to Deferred Tax Asset Balances (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Tax loss carried forwards | ¥ 387,083 | ¥ 296,987 | ||
Impairment loss of investments | 29,570 | 7,271 | ||
Unrealized profits arising from elimination of inter-company transactions | 6,326 | 5,424 | ||
Deferred revenue | 2,302 | 2,408 | ||
Others | 3,428 | 4,379 | ||
Total deferred tax assets | 428,709 | 316,469 | ||
Less: Valuation allowance | (428,709) | (316,469) | ¥ (171,236) | ¥ (143,431) |
Deferred tax liabilities | ||||
Identifiable intangible assets arising from the Acquisition | (21,784) | (25,380) | ||
Unrealized gains on investments | (20,533) | (20,533) | ||
Total deferred tax liabilities | (42,317) | (45,913) | ||
Net deferred tax liabilities | ¥ (42,317) | ¥ (45,913) |
Taxation - Schedule of Valuatio
Taxation - Schedule of Valuation Allowance For Deferred Tax Assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxation | |||
Balance at beginning of the year | ¥ 316,469 | ¥ 171,236 | ¥ 143,431 |
Additions | 114,815 | 146,749 | 42,252 |
Reversals/write-off | (2,575) | (1,516) | (14,447) |
Balance at end of the year | ¥ 428,709 | ¥ 316,469 | ¥ 171,236 |
Ordinary shares - Additional In
Ordinary shares - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Aug. 15, 2023 USD ($) | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | ||
Changes In Equity And Comprehensive Income [Line Items] | ||||||
Repurchase of shares | $ | $ 100,000 | |||||
Repurchase period | 12 months | |||||
Total aggregated consideration | ¥ | ¥ 206,345 | |||||
Payment for repurchased shares | ¥ 202,422 | $ 28,511 | ¥ 0 | [1] | ¥ 0 | |
Class A ordinary shares | ||||||
Changes In Equity And Comprehensive Income [Line Items] | ||||||
Stock issued during period shares stock options exercised with restricted stock award issuance | 2,454,365 | 2,454,365 | 1,717,720 | 2,222,119 | ||
Common shares, shares issued | 82,696,852 | 82,696,852 | 89,401,484 | 86,993,764 | ||
Common shares, shares outstanding | 82,696,852 | 82,696,852 | 89,401,484 | 86,993,764 | ||
Class B ordinary shares | ||||||
Changes In Equity And Comprehensive Income [Line Items] | ||||||
Number of shares conversion of during period | 0 | 0 | 690,000 | 1,280,804 | ||
Common shares, shares issued | 150,386,517 | 150,386,517 | 150,386,517 | 151,076,517 | ||
Common shares, shares outstanding | 150,386,517 | 150,386,517 | 150,386,517 | 151,076,517 | ||
American Depository Shares | ||||||
Changes In Equity And Comprehensive Income [Line Items] | ||||||
Number of shares repurchased | 9,158,997 | 9,158,997 | ||||
Total aggregated consideration | ¥ 206,345 | $ 29,000 | ||||
Payment for repurchased shares | ¥ | ¥ 202,422 | |||||
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) ¥ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 CNY (¥) installment shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Aug. 11, 2022 shares | Jun. 10, 2021 shares | Mar. 31, 2018 shares | Jul. 10, 2017 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | ¥ | ¥ 78,265 | ¥ 156,478 | ¥ 289,705 | ||||
Capitalized share-based compensation expense | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | ||||
Share-based compensation arrangement by share-based payment award, options granted | 0 | 0 | 0 | ||||
Share based compensation arrangement by share based payment award option Forfeitures | 0 | 0 | 0 | ||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | ¥ | ¥ 78,265 | ¥ 156,478 | ¥ 289,705 | ||||
Unrecognized compensation expense | ¥ | ¥ 61,713 | ||||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 8 months 23 days | ||||||
Restricted Stock Units One [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | ||||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50% | ||||||
Restricted Stock Units One [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | ||||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50% | ||||||
Restricted Stock Units Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 48 months | ||||||
Number of equal vesting installments | installment | 4 | ||||||
Restricted Stock Units Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | ||||||
Number of equal vesting installments | installment | 2 | ||||||
Share-based Payment Arrangement, Option [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, other than options granted | 2,787,407 | 5,084,817 | 3,550,617 | ||||
Huya 2017 Share Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense | ¥ | ¥ 0 | ||||||
Huya 2017 Share Incentive Plan | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 28,394,117 | ||||||
Huya 2017 Share Incentive Plan | Incentive Share Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 17,647,058 | 17,647,058 | |||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||||||
Huya 2017 Share Incentive Plan | Option One [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | ||||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50% | ||||||
Huya 2017 Share Incentive Plan | Option One [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | ||||||
Share-based compensation arrangement by share-based payment award, vesting rate | 50% | ||||||
Huya 2017 Share Incentive Plan | Option Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 48 months | ||||||
Huya 2017 Share Incentive Plan | Option Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, vesting period | 24 months | ||||||
Huya 2021 Share Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||||||
Huya 2021 Share Incentive Plan | Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 3,530,111 | ||||||
Huya 2021 Share Incentive Plan | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 3,530,111 | ||||||
Amended and Restated 2021 Share Incentive Plan | Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 8,018,111 |
Share-based compensation - Numb
Share-based compensation - Number of share options granted and their related weighted average exercise prices (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based compensation | ||||
Number of options, Beginning balance | 126,002 | 259,315 | 792,740 | |
Number of options, Forfeited | 0 | 0 | 0 | |
Number of options Exercised | (7,000) | (133,313) | (533,425) | |
Number of options, Ending balance | 119,002 | 126,002 | 259,315 | 792,740 |
Number of options, Expected to vest | 0 | |||
Number of options, Exercisable | 119,002 | |||
Weighted average exercise price, Beginning balance | $ 2.5500 | $ 2.5500 | $ 2.5500 | |
Weighted average exercise price Exercised | 2.5500 | 2.5500 | 2.5500 | |
Weighted average exercise price, Ending balance | 2.5500 | $ 2.5500 | $ 2.5500 | $ 2.5500 |
Weighted average exercise price, Exercisable | $ 2.5500 | |||
Weighted average remaining contractual life | 3 years 7 months 6 days | 4 years 7 months 6 days | 5 years 7 months 6 days | 6 years 7 months 9 days |
Weighted average remaining contractual life, Exercisable | 3 years 7 months 6 days | |||
Aggregate intrinsic value | $ 132 | $ 176 | $ 1,138 | $ 13,778 |
Aggregate intrinsic value, Exercisable | $ 132 |
Share-based compensation - Fair
Share-based compensation - Fair value of the share options as of the grant date (Details) | 12 Months Ended |
Dec. 31, 2018 $ / shares | |
Share-based compensation | |
Weighted average fair value per option granted | $ 5.2130 |
Weighted average exercise price | $ 2.47 |
Risk-free interest rate | 2.83% |
Expected term (in year) | 10 years |
Expected volatility | 55% |
Dividend yield | 0% |
Share-based compensation - Summ
Share-based compensation - Summary of the restricted share units activity (Details) - Restricted share units - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning, RSU | 7,272,469 | 6,841,198 | 6,644,306 |
Granted | 2,787,407 | 5,084,817 | 3,550,617 |
Forfeited | (1,365,256) | (1,731,659) | (806,435) |
Vested | (3,546,222) | (2,921,887) | (2,547,290) |
Ending, RSU | 5,148,398 | 7,272,469 | 6,841,198 |
Expected to vest RSU | 4,879,173 | ||
Beginning ,Weighted | $ 7.8046 | $ 15.5702 | $ 17.1506 |
Granted | 2.8824 | 3.1233 | 13.9339 |
Forfeited | 7.2654 | 13.4427 | 17.9309 |
Vested | 8.5540 | 14.4987 | 16.6645 |
Ending ,Weighted | 4.7664 | $ 7.8046 | $ 15.5702 |
Expected to vest Weighted | $ 4.7731 |
Net income (loss) per share (De
Net income (loss) per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |||
Numerator: | ||||||
Net income (loss) | ¥ (204,519) | $ (28,805) | ¥ (547,673) | [1] | ¥ 583,499 | |
Numerator for basic and diluted net income (loss) per share | ¥ (204,519) | $ (28,805) | ¥ (547,673) | [1] | ¥ 583,499 | |
Denominator: | ||||||
Denominator for basic calculation-weighted average number of Class A and Class B ordinary shares outstanding (in shares) | [2] | 243,025,428 | 243,025,428 | 241,437,842 | [1] | 238,198,117 |
-Diluted effect of share options (in shares) | 0 | 0 | 0 | 497,861 | ||
-Diluted effect of restricted share units (in shares) | 0 | 0 | 0 | 3,094,467 | ||
Denominator for diluted calculation (in shares) | [2] | 243,025,428 | 243,025,428 | 241,437,842 | [1] | 241,790,445 |
Net income (loss) per share, basic | ||||||
-Basic (in rmb per share) | (per share) | [2] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | [1] | ¥ 2.45 |
Net income (loss) per share, diluted | ||||||
-Diluted (in rmb per share) | (per share) | [2] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | [1] | ¥ 2.41 |
ADS | ||||||
Denominator: | ||||||
Denominator for basic calculation-weighted average number of Class A and Class B ordinary shares outstanding (in shares) | [2] | 243,025,428 | 243,025,428 | 241,437,842 | [1] | 238,198,117 |
Denominator for diluted calculation (in shares) | [2] | 243,025,428 | 243,025,428 | 241,437,842 | [1] | 241,790,445 |
Net income (loss) per share, basic | ||||||
-Basic (in rmb per share) | (per share) | [2] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | [1] | ¥ 2.45 |
Net income (loss) per share, diluted | ||||||
-Diluted (in rmb per share) | (per share) | [2] | ¥ (0.84) | $ (0.12) | ¥ (2.27) | [1] | ¥ 2.41 |
Class A ordinary shares | ||||||
Net income (loss) per share, diluted | ||||||
Number of underlying shares represented by one ADR | 1 | 1 | ||||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d).[2]Each ADS represents one Class A ordinary share. |
Related party transactions - Sc
Related party transactions - Schedule of Significant Related Party Transactions (Detail) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Acquisition under common control | ¥ 574,826 | |||
Disposal gain of an investment | ¥ 378,679 | |||
Tencent Holdings Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Acquisition under common control | ¥ 574,826 | ¥ 0 | 0 | |
Content costs charged by Tencent | 249,536 | 539,451 | 485,988 | |
Operation support services provided by Tencent | 142,372 | 225,808 | 370,393 | |
Advertising, sub-licensing and other revenues from Tencent | 118,844 | 22,073 | 80,302 | |
Disposal gain of an investment | 0 | 0 | 360,589 | |
Others | 6,422 | 12,867 | 14,617 | |
JOYY Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operation support services provided by Tencent | 468 | 351 | 2,543 | |
Purchase of services by JOYY on behalf of Huya | ¥ 0 | 0 | 502 | 268 |
Tencents Related Parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Content costs and revenue sharing fees charged by Tencent and Huya's related parties | 61,272 | 100,627 | 102,311 | |
Advertising, sub-licensing and other revenues from Tencent and Huya's related parties | 23,902 | 13,072 | 188,209 | |
Others | ¥ 29,178 | ¥ 18,213 | ¥ 21,013 |
Related party transactions - _2
Related party transactions - Schedule of Significant Related Party Transactions (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Apr. 30, 2021 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Related Party Transaction [Line Items] | |||||||
Aggregate cash consideration | ¥ 574,826 | ||||||
Consideration paid | ¥ 546,084 | ¥ 546,084 | $ 76,914 | ¥ 0 | [1] | ¥ 0 | |
Disposal gain of an investment | 378,679 | ||||||
Tencent Holdings Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate cash consideration | 574,826 | 0 | 0 | ||||
Disposal gain of an investment | ¥ 0 | ¥ 0 | ¥ 360,589 | ||||
Parent Company [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, purchases from related party | ¥ 2,013,000 | ||||||
[1] HUYA Inc. consolidated 2022 statement of cash flows has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Related party transactions - _3
Related party transactions - Schedule of the Amounts Due from/to Related Parties (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Related Party Transaction [Line Items] | |||||
Less: credit loss provision | ¥ (217) | ¥ (302) | ¥ (393) | ¥ (299) | |
Amounts due from related parties, net | 148,648 | $ 20,937 | 59,702 | ||
Amounts due to related parties | 177,714 | $ 25,030 | 133,646 | ||
Tencent Holdings Limited [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties, gross | 147,776 | 44,168 | |||
Amounts due to related parties | 141,743 | 93,574 | |||
Other Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties, gross | 1,089 | 15,836 | |||
Amounts due to related parties | ¥ 35,971 | ¥ 40,072 |
Related party transactions - _4
Related party transactions - Schedule of Allowance for Credit Loss Provision Related to Amounts Due from Related Parties (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expected Credit Loss Provision Related To Amounts Due From to Related Parties [Abstract] | |||
Balance at beginning of the year | ¥ (302) | ¥ (393) | ¥ (299) |
Current year provision | (219) | (139) | (387) |
Current year reversal | 304 | 230 | 293 |
Balance at end of the year | ¥ (217) | ¥ (302) | ¥ (393) |
Fair value measurements - Summa
Fair value measurements - Summary of Financial Instruments Measured or Disclosed at Fair Value on Recurring Basis (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Assets | |||
Short-term investments | ¥ 0 | $ 0 | ¥ 3,117 |
Available-for-sale debt investments | 428,512 | 384,076 | |
Recurring | |||
Assets | |||
Short-term investments | 3,117 | ||
Available-for-sale debt investments | 428,512 | 384,076 | |
Level 2 | Recurring | |||
Assets | |||
Short-term investments | 3,117 | ||
Level 3 | Recurring | |||
Assets | |||
Available-for-sale debt investments | ¥ 428,512 | ¥ 384,076 |
Fair value measurements - Roll
Fair value measurements - Roll forward of Level 3 investments (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Roll forward of Level 3 available-for-sale debt investments | ||
Fair value of Level 3 investments, Beginning balance | ¥ 384,076 | ¥ 157,160 |
New additions | 80,247 | 125,743 |
Credit losses provisions | ¥ (14,987) | |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment loss of investments | |
The change in fair value of the investments | ¥ (20,824) | ¥ 101,173 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Unrealized securities holding gain (loss), net of tax | Unrealized securities holding gain (loss), net of tax |
Fair value of Level 3 investments, Ending balance | ¥ 428,512 | ¥ 384,076 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain on fair value changes of investment | ¥ 0 | ¥ 7,602 | ¥ 44,161 | ||
Impairment loss of investments | 210,813 | 55,201 | 0 | ||
Credit impairment related to available-for-sale debt investments | 14,987 | ||||
Unrealized securities holding losses | (20,824) | $ (2,933) | 85,997 | [1] | ¥ 0 |
Fair Value, Inputs, Level 3 [Member] | Impaired Investments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities without readily determinable fair value | ¥ 65,936 | ¥ 82,140 | |||
[1]HUYA Inc. consolidated 2022 statement of comprehensive income has been retrospectively adjusted due to the business combination under common control as discussed in Note 2(d). |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Operating lease expense | ¥ 41,126 | ¥ 44,754 | ¥ 40,001 |
Short-term lease expense | 12,730 | 13,543 | 16,438 |
Total lease expense | ¥ 53,856 | ¥ 58,297 | ¥ 56,439 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Weighted-average remaining lease term (in years) - operating leases | 2 years 8 months 12 days | ||
Weighted-average discount rate - operating leases | 4.80% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Detail) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Leases | |
2024 | ¥ 32,650 |
2025 | 30,260 |
2026 | 22,330 |
Total undiscounted cash flows | 85,240 |
Less: imputed interest | (5,339) |
Total | ¥ 79,901 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease, Liability (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Cash paid for operating leases | ¥ 34,090 | ¥ 38,035 | ¥ 43,024 |
Lease liabilities arising from obtaining right-of-use assets: | ¥ 74,876 | ¥ 13,567 | ¥ 26,077 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Detail) - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended |
Jan. 31, 2021 | Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Aggregate purchase price | ¥ 2,013 | |
Supplemental Agreement TO License for sports [Member] | Fellow Subsidiary of Tencent [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Aggregate purchase price | ¥ 450 |
Commitments and contingencies_2
Commitments and contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Detail) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Commitments and contingencies | |
2024 | ¥ 4,913 |
2025 | 4,680 |
2026 | 3,650 |
Future minimum payments operating leases | ¥ 13,243 |
Commitments and contingencies_3
Commitments and contingencies - Capital And Other Commitments (Detail) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Commitments and contingencies | |
Outstanding capital expenditures contracted for construction in progress | ¥ 356,686 |
Subsequent events - Additional
Subsequent events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Mar. 19, 2024 | Mar. 19, 2023 |
Subsequent Event [Line Items] | ||
Expected dividends payable | $ 150 | |
Subsequent event | ||
Subsequent Event [Line Items] | ||
Expected dividends payable | $ 150 | |
Subsequent event | Ordinary Shares | ||
Subsequent Event [Line Items] | ||
Special cash dividend per share | $ 0.66 | |
Subsequent event | American Depository Shares | ||
Subsequent Event [Line Items] | ||
Special cash dividend per share | $ 0.66 |
Restricted net assets - Additio
Restricted net assets - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | ||
Percentage of after-tax income required to be transferred to statutory general reserve fund | 10% | |
Reserve level threshold for mandatory appropriation requirement (as a percent) | 50% | |
Restricted net assets | ¥ 782,614 | ¥ 763,960 |