Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Qutoutiao Inc. |
Entity Central Index Key | 0001733298 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity File Number | 001-38644 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Building No. 8 |
Entity Address, Address Line Two | Shanghai Pudong Software Park |
Entity Address, Address Line Three | 519 Yi De Road, Pudong New Area |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200124 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Building No. 8 |
Entity Address, Address Line Two | Shanghai Pudong Software Park |
Entity Address, Address Line Three | 519 Yi De Road, Pudong New Area |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200124 |
Contact Personnel Name | Mr. Xiaolu Zhu, Chief Financial Officer |
City Area Code | 86-21 |
Local Phone Number | 5889-0398 |
Contact Personnel Email Address | ir@qutoutiao.net |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 42,812,245 |
Title of each class | Class A Ordinary Shares, par value US$0.0001 per share |
Name of each exchange on which registered | NASDAQ |
No Trading Symbol Flag | true |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 32,937,193 |
ADR [Member] | |
Document Information [Line Items] | |
Title of each class | American Depositary Shares, every four representing one Class A ordinary shares |
Trading Symbol(s) | QTT |
Name of each exchange on which registered | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | ||
Current assets: | |||||
Cash and cash equivalents | ¥ 494,474,891 | $ 75,781,592 | ¥ 347,817,093 | ||
Restricted cash | 100,300,000 | 15,374,090 | 27,871,552 | ||
Short-term investments | 391,033,374 | 59,928,486 | 1,276,830,926 | ||
Accounts receivable, net | 737,789,173 | 113,071,138 | 526,822,932 | ||
Amounts due from related parties | 383,594,360 | [1] | 58,788,408 | 278,155,878 | [1] |
Prepayments and other current assets | 365,108,503 | 55,955,326 | 234,728,386 | ||
Total current assets | 2,472,316,241 | 378,899,040 | 2,692,226,767 | ||
Non-current assets: | |||||
Accounts receivables, non-current | 54,638,516 | 8,373,719 | |||
Property and equipment, net | 17,212,799 | 2,637,977 | 24,115,374 | ||
Right-of-use assets, net | 50,318,882 | 7,711,706 | 69,241,754 | ||
Intangible assets | 83,122,972 | 12,739,153 | 88,943,679 | ||
Goodwill | 7,268,330 | 1,113,920 | 7,268,330 | ||
Long-term investments | 82,888,709 | 12,703,250 | 37,589,200 | ||
Other non-current assets | 148,091,140 | 22,695,960 | 20,811,791 | ||
Total non-current assets | 443,541,348 | 67,975,685 | 247,970,128 | ||
Total assets | 2,915,857,589 | 446,874,725 | 2,940,196,895 | ||
Current liabilities (including current liabilities of the consolidated variable interest entity("VIEs") and its subsidiaries without recourse to the Company amounting to RMB1,792,082,225 and RMB 1,602,787,481, as of December 31, 2019 and December 31, 2020, respectively): | |||||
Short-term borrowings (including short-term borrowings of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of nil and RMB50,000,000 as of December 31, 2019 and 2020, respectively) | 70,000,000 | 10,727,969 | |||
Loan from a related party (including loan from a related party of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of nil and nil as of December 31, 2019 and 2020, respectively) | 13,049,800 | 1,999,969 | |||
Accounts payable (including accounts payable of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB313,189,188 and RMB399,857,773 as of December 31, 2019 and December 31, 2020, respectively) | 448,980,738 | 68,809,309 | 328,268,752 | ||
Amounts due to a related party (including amount due to a related party of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB3,330,101 and RMB4,294,733 as of December 31, 2019 and 2020, respectively) | 9,426,883 | [2],[3] | 1,444,733 | 3,436,586 | [2],[3] |
Registered users' loyalty payable (including registered users' loyalty payable of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of 127,253,323 and RMB 66,180,291 as of December 31, 2019 and December 31, 2020, respectively) | 72,600,000 | 11,130,505 | 134,145,439 | ||
Advance from customers and deferred revenue (including advance from customers and deferred revenue of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB246,251,382 and RMB 140,776,350 as of December 31, 2019 and December 31, 2020, respectively) | 140,776,350 | 21,574,920 | 246,630,128 | ||
Salary and welfare payable (including salary and welfare payable of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB126,884,752 and RMB115,307,402 as of December 31, 2019 and December 31, 2020, respectively) | 149,703,938 | 22,943,132 | 129,169,734 | ||
Tax payable (including tax payable of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB93,025,726 and RMB98,797,489 as of December 31, 2019 and December 31, 2020, respectively) | 97,143,585 | 14,887,906 | 118,156,494 | ||
Lease liabilities, current (including lease liabilities, current of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB31,275,663 and RMB20,030,138 as of December 31, 2019 and December 31, 2020, respectively) | 20,760,421 | 3,181,674 | 38,210,188 | ||
Accrued liabilities related to users' loyalty programs (including accrued liabilities related to users' loyalty program of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB89,184,947 and RMB100,087,815 as of December 31, 2019 and December 31, 2020, respectively) | 100,100,000 | 15,339,129 | 89,184,947 | ||
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the consolidated VIEs and VIE's subsidiaries without recourse to the Company of RMB761,687,143 and RMB607,455,490 as of December 31, 2019 and December 31, 2020, respectively) | 763,434,272 | 117,001,418 | 788,495,442 | ||
Total current liabilities | 1,886,000,000 | 289,040,664 | 1,875,697,710 | ||
Non-current liabilities: | |||||
Other non-current liabilities | 4,255,931 | 652,250 | 7,212,463 | ||
Lease liabilities, non-current | 23,755,721 | 3,640,724 | 26,651,446 | ||
Deferred tax liabilities | 18,825,416 | 2,885,121 | 21,228,656 | ||
Convertible loan | 1,174,900,000 | 180,056,381 | 1,218,905,676 | ||
Non-current liabilities | 1,221,700,000 | 187,234,476 | 1,273,998,241 | ||
Total liabilities | 3,107,695,299 | 476,275,140 | 3,149,695,951 | ||
Commitments and contingencies | |||||
Mezzanine equity: | |||||
Redeemable non-controlling interests | 1,093,526,058 | 167,590,201 | 495,844,565 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 4,784,314,735 | 733,228,312 | 4,321,100,861 | ||
Treasury stock (US$0.0001 par value; 8,635,420 and 7,490,634 shares as of December 31, 2019 and December 31, 2020, respectively) | (142,228,779) | (21,797,514) | (142,228,779) | ||
Accumulated other comprehensive income (loss) | 84,319,590 | 12,922,543 | (17,934,525) | ||
Accumulated deficit | (6,007,200,000) | (920,647,797) | (4,862,464,162) | ||
Total Qutoutiao Inc. shareholders' deficit | (1,280,774,510) | (196,287,281) | (701,481,954) | ||
Non-controlling interests | (4,589,258) | (703,335) | (3,861,667) | ||
Total shareholders' deficit | (1,285,363,768) | (196,990,616) | (705,343,621) | ||
Total liabilities, mezzanine equity and shareholders' deficit | 2,915,857,589 | 446,874,725 | 2,940,196,895 | ||
Class A Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 22,426 | 3,437 | 20,260 | ||
Class B Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | ¥ 24,391 | $ 3,738 | ¥ 24,391 | ||
[1] | For the year ended December 31, 2018, the service fee charged to related parties consisted of: the advertising and marketing service of RMB 4.5 million provided to a company in which the founder of the Company was a member of key management (the founder was no longer a member of management of that company as of September 30, 2018), and the advertising service of RMB 12.9 million provided to Series B1 shareholder through September 2018 (After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018). For the year ended December 31, 2019 and 2020, the service fee of RMB473.2 million and RMB250.9 million charged to related parties represents advertising and marketing services provided to companies under the common control of the founder, to help promote these companies’ online applications, which were developed in late 2018. As of December 31, 2020, the amounts due from related parties is comprised of RMB368.5 million which pertains to accounts receivable from related parties revenues generated, whereas the remaining RMB15.1 million is a fee that the Company prepaid to a related party to place advertisements on behalf of their customers on the related party platform; the balance are settled and recorded as cost of revenues (see (5) below) as the advertisement services are provided. These balances were RMB262.6 million and RMB15.6 million, respectively, as of December 31, 2019. Out of the accounts receivable from related parties of RMB262.2 million as of December 31, 2019, a total of RMB160 million of the balances have been collected as of December 31, 2020; the remaining RMB102.2 million was collected during the first quarter of 2021. Although the receivables of RMB102.2 million were settled after the due date, as these companies are under the common control of the founder and they have demonstrated an ability to continuously pay off their balances, the Company did not view this delay in payment as a sign of collectability risk. For the revenue recognized in 2020, payments have not been received as the balances as of December 31, 2020 are still within the nine to twelve months payment terms and expect to be settled within the payment terms. | ||||
[2] | In 2019 the Group entered into a CPM (cost per impression) arrangement with a media platform under the common control of the founder for the Group’s customer’s advertisement placement. The total service fee charged from the related party amounted to RMB35.6 million and RMB29.2 million for the years ended December 31, 2019 and 2020, respectively. | ||||
[3] | In 2019 the Group entered into a game cooperation agreement with a game developing company which the founder’s controlled entity has significant influence over. The Company is the principal in the arrangement. The total service fee represents the amount paid to the game developing company in relation to the arrangement, and amounted to RMB6.8 million and RMB1.8 million for the years ended December 31, 2019 and 2020, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | ||
Current liabilities | ¥ 1,886,000,000 | $ 289,040,664 | ¥ 1,875,697,710 | ||
Short-term borrowings | 70,000,000 | 10,727,969 | |||
Loan from a related party | 13,049,800 | 1,999,969 | |||
Accounts payable, current | 448,980,738 | 68,809,309 | 328,268,752 | ||
Amounts due to a related party, current | 9,426,883 | [1],[2] | 1,444,733 | 3,436,586 | [1],[2] |
Loyalty payable, current | 72,600,000 | 11,130,505 | 134,145,439 | ||
Advance from customers and deferred revenue, current | 140,776,350 | 21,574,920 | 246,630,128 | ||
Salary and welfare payable, current | 149,703,938 | 22,943,132 | 129,169,734 | ||
Tax payable, current | 97,143,585 | 14,887,906 | 118,156,494 | ||
Lease liabilities, current | 20,760,421 | 3,181,674 | 38,210,188 | ||
Accrued liabilities, current | 100,100,000 | 15,339,129 | 89,184,947 | ||
Accrued liabilities and other current liabilities | ¥ 763,434,272 | $ 117,001,418 | ¥ 788,495,442 | ||
Treasury stock, par value | $ / shares | $ 0.0001 | ||||
Treasury stock, shares | shares | 7,490,634 | 7,490,634 | 8,635,420 | ||
Variable Interest Entities | |||||
Current liabilities | ¥ 1,602,787,481 | ¥ 1,792,082,225 | |||
Short-term borrowings | 50,000,000 | 0 | |||
Loan from a related party | 0 | 0 | |||
Accounts payable, current | 399,857,773 | 313,189,188 | |||
Amounts due to a related party, current | 4,294,733 | 3,330,101 | |||
Loyalty payable, current | 66,180,291 | 127,253,323 | |||
Advance from customers and deferred revenue, current | 140,776,350 | 246,251,382 | |||
Salary and welfare payable, current | 115,307,402 | 126,884,752 | |||
Tax payable, current | 98,797,489 | 93,025,726 | |||
Lease liabilities, current | 20,030,138 | 31,275,663 | |||
Accrued liabilities, current | 100,087,815 | 89,184,947 | |||
Accrued liabilities and other current liabilities | ¥ 607,455,490 | ¥ 761,687,143 | |||
Class A Ordinary Shares | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||||
Ordinary shares, shares authorized | shares | 50,000,000 | 50,000,000 | 50,000,000 | ||
Ordinary shares, shares, issued | shares | 42,812,245 | 42,812,245 | 40,812,245 | ||
Ordinary shares, shares, outstanding | shares | 35,321,611 | 35,321,611 | 32,176,825 | ||
Class B Ordinary Shares | |||||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||||
Ordinary shares, shares authorized | shares | 34,248,442 | 34,248,442 | 34,248,442 | ||
Ordinary shares, shares, issued | shares | 32,937,193 | 32,937,193 | 32,937,193 | ||
Ordinary shares, shares, outstanding | shares | 32,937,193 | 32,937,193 | 32,937,193 | ||
[1] | In 2019 the Group entered into a CPM (cost per impression) arrangement with a media platform under the common control of the founder for the Group’s customer’s advertisement placement. The total service fee charged from the related party amounted to RMB35.6 million and RMB29.2 million for the years ended December 31, 2019 and 2020, respectively. | ||||
[2] | In 2019 the Group entered into a game cooperation agreement with a game developing company which the founder’s controlled entity has significant influence over. The Company is the principal in the arrangement. The total service fee represents the amount paid to the game developing company in relation to the arrangement, and amounted to RMB6.8 million and RMB1.8 million for the years ended December 31, 2019 and 2020, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Net revenues | ¥ 5,285,195,023 | $ 809,991,575 | ¥ 5,570,080,604 | ¥ 3,022,145,785 |
Cost of revenues | (1,643,365,048) | (251,856,712) | (1,598,220,452) | (497,592,461) |
Cost of revenues-related parties | (31,051,100) | (4,758,789) | (42,411,604) | (6,020,268) |
Gross profit | 3,610,778,875 | 553,376,074 | 3,929,448,548 | 2,518,533,056 |
Operating expenses: | ||||
Research and development expenses | (947,870,809) | (145,267,557) | (926,231,578) | (270,107,740) |
Sales and marketing expenses | (3,377,368,441) | (517,604,359) | (5,486,423,653) | (3,226,367,334) |
Sales and marketing expenses-related parties | (4,192,090) | (642,466) | (3,284,223) | (23,670,772) |
General and administrative expenses | (392,815,316) | (60,201,581) | (267,033,100) | (980,725,286) |
Total operating expenses | (4,722,246,656) | (723,715,963) | (6,682,972,554) | (4,500,871,132) |
Other operating income | 79,298,306 | 12,152,997 | 30,292,356 | 724,892 |
Loss from operations | (1,032,169,475) | (158,186,892) | (2,723,231,650) | (1,981,613,184) |
Interest income | 10,418,919 | 1,596,769 | 48,440,468 | 27,087,009 |
Interest expense | (38,143,009) | (5,845,672) | (26,878,316) | |
Foreign exchange related gains (loss), net | (7,183,462) | (1,100,914) | 1,868,497 | 4,133,996 |
Investment income (loss) | (31,788,048) | (4,871,731) | 6,327,104 | 4,214,607 |
Other income/(expenses), net | (7,308,728) | (1,120,112) | 9,048,926 | (69,181) |
Loss before income taxes | (1,106,173,803) | (169,528,552) | (2,684,424,971) | (1,946,246,753) |
Income tax benefit/(expense) | 1,007,370 | 154,386 | (4,842,876) | 400,541 |
Net loss | (1,105,200,000) | (169,374,166) | (2,689,267,847) | (1,945,846,212) |
Net loss attributable to non-controlling interests | 727,592 | 111,508 | 587,142 | 3,274,525 |
Net loss attributable to Qutoutiao Inc. | (1,104,438,841) | (169,262,658) | (2,688,680,705) | (1,942,571,687) |
Accretion to convertible redeemable preferred shares redemption value | (101,806,743) | |||
Gains on repurchase of convertible redeemable preferred shares | 0 | 18,332,152 | ||
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | 14,841,680 | 2,274,587 | ||
Deemed dividend to preferred shareholders | (1,916,871) | |||
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | (1,137,873,932) | (174,386,810) | (2,709,228,737) | (2,028,941,350) |
Net loss | (1,105,200,000) | (169,374,166) | (2,689,267,847) | (1,945,846,212) |
Other comprehensive income/(loss) | ||||
Foreign currency translation adjustment, net of nil tax | 102,254,115 | 15,671,129 | (1,505,650) | (16,453,526) |
Total comprehensive loss | (1,002,912,318) | (153,703,037) | (2,690,773,497) | (1,962,299,738) |
Comprehensive loss attributable to non-controlling interests | 727,592 | 111,508 | 587,142 | 3,274,525 |
Comprehensive loss attributable to Qutoutiao Inc. | ¥ (1,002,184,726) | $ (153,591,529) | ¥ (2,690,186,355) | ¥ (1,959,025,213) |
Net loss per share attributable to Qutoutiao Inc.'s ordinary shareholders | ||||
— Basic and diluted | (per share) | ¥ (15.69) | $ (2.40) | ¥ (39.41) | ¥ (52.69) |
Weighted average number of ordinary shares used in per share calculation: | ||||
— Basic and Diluted | shares | 72,513,077 | 72,513,077 | 68,749,981 | 38,507,184 |
Subsidiary | ||||
Operating expenses: | ||||
Accretion to convertible redeemable preferred shares redemption value | ¥ (48,276,771) | $ (7,398,739) | ¥ (20,548,032) | ¥ (978,201) |
Advertising and Marketing Revenue | ||||
Net revenues | 4,795,960,137 | 735,013,048 | 4,942,104,752 | 2,796,810,549 |
Advertising And Marketing Revenue Related Parties | ||||
Net revenues | 250,874,596 | 38,448,214 | 473,215,790 | 17,447,475 |
Other Revenue | ||||
Net revenues | ¥ 238,360,290 | $ 36,530,313 | ¥ 154,760,062 | 178,290,618 |
Other Revenue Related Parties | ||||
Net revenues | ¥ 29,597,143 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Foreign currency translation adjustment, tax | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT | CNY (¥)shares | USD ($)shares | Series A Convertible Redeemable Preferred SharesCNY (¥) | Series A1 Convertible Redeemable Preferred SharesCNY (¥) | Series B Convertible Redeemable Preferred SharesCNY (¥) | Series B1 Convertible Redeemable Preferred SharesCNY (¥) | Series B2 Convertible Redeemable Preferred SharesCNY (¥) | Series B3 Convertible Redeemable Preferred SharesCNY (¥) | Series C Convertible Redeemable Preferred SharesCNY (¥) | Series C1 Convertible Redeemable Preferred SharesCNY (¥) | Outstanding Ordinary SharesCNY (¥)shares | Additional Paid-In CapitalCNY (¥) | Treasury StocksCNY (¥)shares | Accumulated Other Comprehensive LossCNY (¥) | Accumulated DeficitCNY (¥) | Accumulated DeficitSeries A Convertible Redeemable Preferred SharesCNY (¥) | Accumulated DeficitSeries A1 Convertible Redeemable Preferred SharesCNY (¥) | Accumulated DeficitSeries B Convertible Redeemable Preferred SharesCNY (¥) | Accumulated DeficitSeries B1 Convertible Redeemable Preferred SharesCNY (¥) | Accumulated DeficitSeries B2 Convertible Redeemable Preferred SharesCNY (¥) | Accumulated DeficitSeries B3 Convertible Redeemable Preferred SharesCNY (¥) | Accumulated DeficitSeries C Convertible Redeemable Preferred SharesCNY (¥) | Accumulated DeficitSeries C1 Convertible Redeemable Preferred SharesCNY (¥) | Non-controlling InterestsCNY (¥) | Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated DeficitCNY (¥) |
Beginning balance at Dec. 31, 2017 | ¥ (108,560,011) | ¥ 15,723 | ¥ 8,856,316 | ¥ 24,651 | ¥ (117,456,701) | |||||||||||||||||||||
Beginning balance, shares at Dec. 31, 2017 | shares | 24,062,500 | 10,000,000 | ||||||||||||||||||||||||
Share-based compensation expense (Note 17) | 951,626,250 | 951,626,250 | ||||||||||||||||||||||||
Accretion on Series A convertible redeemable preferred shares of a subsidiary | ¥ (978,201) | ¥ (978,201) | ||||||||||||||||||||||||
Accretion to convertible redeemable preferred shares redemption value | (101,806,743) | (15,718,213) | ¥ (4,840,875) | ¥ (37,001,459) | ¥ (31,800,587) | ¥ (12,312,158) | ¥ (133,451) | (15,718,213) | ¥ (4,840,875) | ¥ (37,001,459) | ¥ (31,800,587) | ¥ (12,312,158) | ¥ (133,451) | |||||||||||||
Distribution to the founder (Note 17) | 6,837,374 | (6,837,374) | ||||||||||||||||||||||||
Conversion of series A, A1, B1, B2, B3, C1 preferred shares to ordinary shares, value | 2,123,987,271 | ¥ 12,217 | 2,123,975,054 | |||||||||||||||||||||||
Conversion of series A, A1, B1, B2, B3, C1 preferred shares to ordinary shares, shares | shares | 17,821,248 | |||||||||||||||||||||||||
Deemed dividend to preferred shareholders (Note 15) | 1,916,871 | (1,916,871) | ||||||||||||||||||||||||
Vesting of restricted shares to founders, value | ¥ 10,926 | (10,926) | ||||||||||||||||||||||||
Vesting of restricted shares to founders, shares | shares | 15,937,500 | |||||||||||||||||||||||||
Gains on repurchase of convertible redeemable preferred shares | 18,332,152 | 18,332,152 | ||||||||||||||||||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and over- allotment option, net of cost of issuance (Note 3), value | 590,931,483 | ¥ 2,364 | 590,929,119 | |||||||||||||||||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and over- allotment option, net of cost of issuance (Note 3), shares | shares | 3,450,000 | |||||||||||||||||||||||||
Exercise of share options | ¥ 317 | ¥ 317 | ||||||||||||||||||||||||
Exercise of share options, shares | shares | 500,000 | 500,000 | 500,000 | (500,000) | ||||||||||||||||||||||
Net loss | ¥ (1,945,846,212) | (1,942,571,687) | ¥ (3,274,525) | |||||||||||||||||||||||
Foreign currency translation | (16,453,526) | (16,453,526) | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2018 | 1,511,232,780 | ¥ 41,547 | 3,684,130,058 | (16,428,875) | (2,153,235,425) | (3,274,525) | ||||||||||||||||||||
Ending balance, shares at Dec. 31, 2018 | shares | 61,771,248 | 9,500,000 | ||||||||||||||||||||||||
Share-based compensation expense (Note 17) | 271,978,493 | 271,978,493 | ||||||||||||||||||||||||
Accretion on Series A convertible redeemable preferred shares of a subsidiary | (12,171,842) | ¥ (8,376,190) | (12,171,842) | ¥ (8,376,190) | ||||||||||||||||||||||
Issuance of ordinary shares to the Paper (Note 3), value | 152,850,342 | ¥ 1,047 | 152,849,295 | |||||||||||||||||||||||
Issuance of ordinary shares to the Paper (Note 3), shares | shares | 1,480,123 | |||||||||||||||||||||||||
Issuance of ordinary shares upon follow-on offering, net of issuance costs (Note 3), value | 212,143,573 | ¥ 558 | 212,143,015 | |||||||||||||||||||||||
Issuance of ordinary shares upon follow-on offering, net of issuance costs (Note 3), shares | shares | 831,967 | |||||||||||||||||||||||||
Repurchase of ordinary shares (Note 2z), value | (142,228,779) | ¥ (142,228,779) | ||||||||||||||||||||||||
Repurchase of ordinary shares (Note 2z), shares | shares | (1,166,425) | 1,166,425 | ||||||||||||||||||||||||
Exercise of share options | ¥ 1,499 | ¥ 1,499 | ||||||||||||||||||||||||
Exercise of share options, shares | shares | 2,197,104 | 2,197,104 | 2,197,105 | (2,031,005) | ||||||||||||||||||||||
Net loss | ¥ (2,689,267,847) | (2,688,680,705) | (587,142) | |||||||||||||||||||||||
Foreign currency translation | (1,505,650) | (1,505,650) | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | (705,343,621) | ¥ 44,651 | 4,321,100,861 | ¥ (142,228,779) | (17,934,525) | (4,862,464,162) | (3,861,667) | |||||||||||||||||||
Ending balance, shares at Dec. 31, 2019 | shares | 65,114,018 | 8,635,420 | ||||||||||||||||||||||||
Share-based compensation expense (Note 17) | 463,213,874 | 463,213,874 | ||||||||||||||||||||||||
Cumulative effect of adoption of accounting standard | ¥ (6,888,779) | ¥ (6,888,779) | ||||||||||||||||||||||||
Accretion on Series A convertible redeemable preferred shares of a subsidiary | ¥ (13,509,457) | (33,187,330) | ¥ (1,579,984) | ¥ (13,509,457) | (33,187,330) | ¥ (1,579,984) | ||||||||||||||||||||
Gains on repurchase of Series B convertible redeemable preferred shares of a subsidiary | 14,841,680 | $ 2,274,587 | ¥ 14,841,680 | ¥ 14,841,680 | ||||||||||||||||||||||
Repurchase of ordinary shares (Note 2z), value | (142,200,000) | |||||||||||||||||||||||||
Repurchase of ordinary shares (Note 2z), shares | shares | 1,166,425 | |||||||||||||||||||||||||
Gains on repurchase of convertible redeemable preferred shares | 0 | |||||||||||||||||||||||||
Exercise of share options | ¥ 2,166 | ¥ 2,166 | ||||||||||||||||||||||||
Exercise of share options, shares | shares | 3,144,786 | 3,144,786 | 3,144,786 | (1,144,786) | ||||||||||||||||||||||
Net loss | ¥ (1,105,166,432) | (1,104,438,841) | (727,591) | |||||||||||||||||||||||
Foreign currency translation | 102,254,115 | 102,254,115 | ||||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | ¥ (1,285,363,768) | $ (196,990,616) | ¥ 46,817 | ¥ 4,784,314,735 | ¥ (142,228,779) | ¥ 84,319,590 | ¥ (6,007,226,873) | ¥ (4,589,258) | ||||||||||||||||||
Ending balance, shares at Dec. 31, 2020 | shares | 68,258,804 | 7,490,634 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities | ||||
Net loss | ¥ (1,105,200,000) | $ (169,374,166) | ¥ (2,689,267,847) | ¥ (1,945,846,212) |
Adjustments for: | ||||
Depreciation of property and equipment | 12,143,925 | 1,861,138 | 10,003,655 | 4,291,284 |
Amortization of intangible assets | 13,025,735 | 1,996,281 | 10,555,229 | 1,602,163 |
Non-cash operating lease expense | 41,205,243 | 6,314,980 | 43,513,790 | |
Deferred tax benefit | (2,403,240) | (368,313) | (2,403,243) | (400,541) |
Share-based compensation | 463,213,874 | 70,990,632 | 271,978,493 | 951,626,250 |
Interest expense | 36,798,148 | 5,639,563 | 26,878,316 | |
Changes in estimate for accrued liabilities related to users' loyalty programs | 8,746,231 | 1,340,419 | 22,687,320 | 54,601,750 |
Allowance for doubtful accounts | 79,809,120 | 12,231,283 | ||
Unrealized gain of publicly traded equity security | (16,665,259) | (2,554,063) | ||
Unrealized loss of non-marketable equity securities | 54,403,495 | 8,337,700 | ||
Loss on disposal of property, plant and equipment | 169,916 | 26,041 | ||
Changes in assets and liabilities, net of impact of acquisition: | ||||
Accounts receivable | (297,664,140) | (45,619,025) | (322,838,858) | (160,733,479) |
Amount due from related parties | (105,438,482) | (16,159,154) | (278,155,878) | |
Prepayments and other current assets | 105,748,575 | 16,206,678 | (85,958,956) | (74,365,824) |
Accounts receivables, noncurrent | (54,638,516) | (8,373,719) | ||
Other non-current assets | 13,111,844 | 2,009,478 | (8,979,480) | (3,388,147) |
Accounts payable | 120,574,857 | 18,478,905 | 197,019,533 | 115,892,236 |
Amount due to related parties | 5,990,297 | 918,053 | 3,436,586 | |
Registered users' loyalty payable | (61,518,893) | (9,428,183) | (122,516,495) | 235,684,796 |
Salary and welfare payable | 20,256,670 | 3,104,470 | 85,747,532 | 36,964,404 |
Tax payable | (20,963,972) | (3,212,869) | 13,096,995 | 70,010,545 |
Accrued liabilities related to users' loyalty programs | 2,156,637 | 330,519 | 22,363,815 | (197,471,407) |
Accrued liabilities and other current liabilities | (28,786,344) | (4,411,700) | 392,071,989 | 353,985,756 |
Advances from customers and deferred revenue | (105,853,778) | (16,222,801) | 91,530,811 | 113,095,683 |
Operating lease liabilities | (39,073,120) | (5,988,218) | (45,584,621) | |
Non-current liabilities | (2,956,532) | (453,108) | (2,473,756) | 9,686,219 |
Net cash used in operating activities | (863,800,000) | (132,379,179) | (2,367,295,070) | (434,764,524) |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (1,271,775,756) | (194,908,162) | (2,454,602,495) | (4,164,032,230) |
Purchase of long-term investments | (106,276,500) | (16,287,586) | (37,589,200) | |
Proceeds from maturity of short-term investments | 2,173,594,307 | 333,117,901 | 1,294,361,059 | 4,189,115,780 |
Purchase of intangible assets | (3,785,796) | (580,199) | (4,971,310) | (72,097,321) |
Cash paid for acquisitions, net of cash acquired | (10,729,825) | |||
Purchase of property and equipment | (6,197,867) | (949,865) | (21,349,657) | (14,924,590) |
Proceeds from disposal of property and equipment | 786,601 | 120,552 | 175,634 | |
Prepayment for purchase of intangible asset | (3,800,000) | (582,375) | ||
Net cash provided by/(used in) investing activities | 782,544,989 | 119,930,266 | (1,224,151,603) | (72,492,552) |
Cash flows from financing activities: | ||||
Payment of accrued Initial Public Offering expense | (1,575,911) | |||
Proceeds from follow-on offering, net of issuance costs | 212,143,573 | |||
Proceeds from issuance of ordinary shares to The Paper | 144,351,128 | |||
Proceeds from Convertible Loan, net of issuance costs | 1,174,900,000 | 1,174,616,692 | ||
Payment for repurchase of ordinary shares | (142,228,779) | |||
Cash received from other financing activities | 138,051 | |||
Proceeds from bank borrowings | 70,000,000 | 10,727,969 | ||
Proceeds of borrowings from a related party | 13,356,200 | 2,046,927 | ||
Net cash provided by financing activities | 307,746,200 | 47,164,168 | 1,768,001,310 | 2,298,043,751 |
Net increase/ (decrease) in cash, cash equivalents and restricted cash | 226,517,047 | 34,715,255 | (1,823,445,363) | 1,790,786,675 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (7,414,861) | (1,136,377) | 12,845,762 | 117,043,158 |
Cash, cash equivalents and restricted cash at the beginning of year | 375,688,645 | 57,576,804 | 2,186,288,246 | 278,458,413 |
Cash, cash equivalents and restricted cash at the end of year | 594,790,831 | 91,155,682 | 375,688,645 | 2,186,288,246 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 364,444 | 55,853 | ||
Cash paid for income taxes | 3,267,758 | 500,806 | ||
Noncash Investing and Financing Items [Abstract] | ||||
Accrued Initial Public Offering expense | 1,575,911 | |||
Revenue recognized for non-monetary transactions (Note 8) | (40,000,000) | |||
Sales and marketing expense recorded for non-monetary transactions (Note 8) | 21,132,075 | |||
Incentive payment to customer (Note 13) | (22,842,164) | |||
Cooperation service fee to The Paper (Note 3) | (8,499,574) | |||
Deemed dividend to preferred shares shareholders | 1,916,871 | |||
Gains on repurchase of convertible redeemable preferred shares | (18,332,152) | |||
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | (14,841,680) | (2,274,587) | ||
Content and intangible assets acquired from a third-party investor through the issuance of Series C convertible redeemable preferred shares of a subsidiary (Note 21) | (375,804,780) | (57,594,602) | ||
The below table reconciles cash, cash equivalents, and restricted cash as reported in the consolidated balanace sheets to the total of the same amounts shown in the consolidated statements of cash flows | ||||
Cash and cash equivalents | 494,474,891 | 75,781,592 | 347,817,093 | 2,186,288,246 |
Restricted cash | 100,315,940 | 15,374,090 | 27,871,552 | |
Cash, cash equivalents and restricted cash at the end of year | 594,790,831 | 91,155,682 | 375,688,645 | 2,186,288,246 |
Initial Public Offering And Over Allotment Option | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of ordinary shares upon Initial Public Offering and over-allotment option, net of cost of issuance | 592,507,394 | |||
Series B Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 353,337,104 | |||
Payment of accrued issuance costs for Series B convertible redeemable preferred shares of a subsidiary | (435,000) | (66,667) | ||
Repurchase of Series B Convertible redeemable Preferred Shares of a subsidiary | (135,744,000) | (20,803,678) | ||
Noncash Investing and Financing Items [Abstract] | ||||
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | (14,841,680) | |||
Series C Convertible Redeemable Preferred Stock [Member] | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 360,569,000 | 55,259,617 | ||
Noncash Investing and Financing Items [Abstract] | ||||
Accrued Series C convertible redeemable preferred shares issuance cost of a subsidiary | 3,135,292 | 480,505 | ||
Series A and B Convertible Redeemable Preferred Shares of Subsidiary | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accrued Series A and B convertible redeemable preferred shares issuance cost of a subsidiary | 435,000 | 126,146 | ||
Series AB And C Convertible Redeemable Preferred Shares Of Subsidiary [Member] | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accretion to preferred shares redemption value | ¥ 48,276,771 | $ 7,398,739 | 20,548,032 | 978,201 |
Series A Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | ¥ 27,357,503 | 97,147,400 | ||
Series B1 Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 651,736,522 | |||
Series B2 Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 569,316,830 | |||
Series B3 Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 282,249,969 | |||
Series C1 Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 104,947,585 | |||
Series A Preferred Shares | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accretion to preferred shares redemption value | 15,718,213 | |||
Series A1 Preferred Shares | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accretion to preferred shares redemption value | 4,840,875 | |||
Series B1 Preferred Shares | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accretion to preferred shares redemption value | 37,001,459 | |||
Series B2 Preferred Shares | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accretion to preferred shares redemption value | 31,800,587 | |||
Series B3 Preferred Shares | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accretion to preferred shares redemption value | 12,312,158 | |||
Series C1 Preferred Shares | ||||
Noncash Investing and Financing Items [Abstract] | ||||
Accretion to preferred shares redemption value | ¥ 133,451 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Organization and Principal Activities (a) Principal activities Qutoutiao Inc. (the “Company”), an exempted company with limited liability incorporated in the Cayman Islands, (i) its various equity-owned consolidated subsidiaries, (ii) its controlled affiliates, and (iii) the subsidiaries of its controlled affiliates are collectively referred to as the “Group”. The Group’s principal activity is to operate mobile platforms Qutoutiao (“QTT”), Quduopai (QDP) and Midu (“MD”) for the distribution, consumption and sharing of light entertainment content. The Group generates revenue primarily by providing cost-effective and targeted advertising solutions through the mobile platforms in the People’s Republic of China (“PRC”), through its controlled affiliates and their wholly-owned subsidiaries thereof (collectively referred to as the “Affiliated Entities”). As of December 31, 2020, the Company’s principal subsidiaries and consolidated Affiliated Entities are as follows: Name of subsidiaries and VIEs Date of acquisition Place of incorporation Percentage of direct or indirect economic ownership Wholly owned subsidiaries of the Company: InfoUniversal Limited(“InfoUniversal”) August 2017 Hong Kong 100 % Qtech USA Inc. (“Qtech”) April 2018 USA 100 % Fun Literature Limited (Cayman) (“Fun Literature”) October 2018 Cayman 78 % Fun Literature (HK) Limited (“Fun Literature HK”) October 2018 Hong Kong 100 % Shanghai Quyun Internet Technology Co., Ltd. (“Quyun WFOE”) October 2017 PRC 100 % Shanghai Dianguan Network Technology Co., Ltd. (“Dianguan”) February 2018 PRC 100 % QTT Asia Ltd.(“QTT Asia”) April 2018 British Islands (“BVI”) 100 % Shanghai Zhicao Information Technology Co., Ltd. (“Zhicao WFOE”) December 2018 PRC 100 % Shanghai Chenxing Software Technology Co., Ltd. (“Chenxing”) Januray PRC 100 % Shanghai Yanmo Software Technology Co., Ltd. (“Yanmo”) October 2019 PRC 100 % Shanghai Shuqin Information Technology Co., Ltd. (“Shuqin”) November 2020 PRC 100 % Shanghai Wennuo Information Technology Co., Ltd. (“Wennuo”) July 2020 PRC 100 % Variable Interest Entity (“VIEs”) Shanghai Jifen Culture Communications Co., Ltd. (“Jifen or Jifen VIE”) January 2012 PRC 100 % Beijing Churun Internet Technology Co., Ltd. (“Churun”) November 2018 PRC 100 % Shanghai Big Rhinoceros Horn Information Technology, Co., Ltd (“Big Rhinoceros Horn”) November 2018 PRC 100 % Shanghai DragonS Information Technology, Co., Ltd (“ DragonS Information”) January 2019 PRC 100 % Anhui Zhangduan Internet Technology Co., Ltd. (“Zhangduan”) March 2017 PRC 100 % Hubei Rapid Information Technology Co., Ltd. (“Rapid Information”) March 2019 PRC 100 % Shanghai Tuohuan Information Technology Co., Ltd. (“Tuohuan”) September 2019 PRC 100 % Shanghai Ququanquan Information Technology Co., Ltd. (“Ququanquan”) October 2019 PRC 100 % Shanghai Xiaoqiao Information Technology Co., Ltd. (“Xiaoqiao”) September 2019 PRC 100 % Shanghai Xunkai Information Technology Co., Ltd. (“Xunkai”) October 2019 PRC 100 % Huaian Beixia Information Technology Co., Ltd. (“Beixia”) November 2020 PRC 100 % Shanghai Douzao Internet Technology Co., Ltd. (“Douzao”) July 2020 PRC 100 % Subsidiaries of Variable Interest Entity (“VIE subsidiaries”) Shanghai Xike Information Technology Service Co., Ltd. (“Xike”) July 2016 PRC 100 % Shanghai Tuile Information Technology Service Co., Ltd. (“Tuile”) July 2016 PRC 100 % Beijing Qukandian Internet Technology Co., Ltd. (“Qukandian”) April 2017 PRC 100 % Shanghai Heitu Internet Technology Co., Ltd. (“Heitu”) January 2019 PRC 100 % Shanghai Zheyun Internet Technology Co., Ltd. (“Zheyun”) January 2019 PRC 100 % Beijing Supreme Pole International Sports Development Co., Ltd. (“Supreme Pole International Sports”) January 2019 PRC 100 % Tianjin Quwen Internet Technology Co., Ltd. (“Quwen”) August 2018 PRC 100 % Shanghai Manchuan Information Technology Co., Ltd. (“Manchuan”) March 2020 PRC 100 % Shanghai Yunxi Information Technology Co., Ltd. (“Yunxi”) April 2020 PRC 100 % Hubei Xijie Information Technology Co., Ltd. Shanghai Branch (“Xijie”) January 2020 PRC 100 % Hubei Xijie Information Technology Co., Ltd. (“Xijie”) January 2019 PRC 100 % Hubei Rapid January 2020 PRC 100 % Shanghai Luoshi Software Technology Co., Ltd. (“Luoshi”) Januray PRC 100 % Shanghai Xiaying Software Technology Co., Ltd. (“Xiaying”) November 2019 PRC 100 % Shanghai Songmang Internet Technology Co., Ltd. (“Songmang”) December 2019 PRC 100 % Shanghai Miaoqu Internet Technology Co., Ltd. (“Miaoqu”) December 2019 PRC 100 % Shanghai Xixia Information Technology Co., Ltd. (“Xixia”) October 2019 PRC 100 % Shanghai Mili Information Technology Co., Ltd. (“Mili”) March 2020 PRC 100 % Shanghai Kunjie Information Technology Co., Ltd. (“Kunjie”) March 2020 PRC 100 % Hubei Qingluo Information Technology Co., Ltd. Shanghai Branch (“Qingluo”) March 2020 PRC 100 % Hubei Qingluo Information Technology Co., Ltd. (“Qingluo”) March 2019 PRC 100 % (b) Organization The consolidated financial statements include the financial statements of the Company, its subsidiaries, the Affiliated Entities for which the Company is the primary beneficiary. Jifen was incorporated in the PRC in 2012 and started the operation of the mobile platforms for distribution, consumption and sharing of light entertainment content (the “principal business”) from 2016. To facilitate offshore financing, an offshore corporate structure was formed in 2017 by incorporating the Company and Quyun WFOE. On October 13, 2017, the Group entered into various arrangements (“VIE Agreements”) as related to its Affiliated Entities or its shareholders in order to comply with PRC laws and regulations on internet business. By entering the VIE Agreements, Jifen became a VIE whose primary beneficiary is Quyun WFOE and the shareholders of Jifen became the “Nominee Shareholders” of Jifen. The principal terms of the contractual arrangements are described below: Exclusive Technology Support and Consulting Services Agreement Under the exclusive technology support and consulting services agreement between Jifen VIE and Quyun WFOE, Quyun WFOE has the exclusive right to provide to Jifen technology support, business management consulting, marketing consultation, products research and development and technology services related to all technologies, and business operations needed for its business. Quyun WFOE owns the exclusive intellectual property rights created because of the performance of this agreement. The service fee payable by Jifen to Quyun WFOE is determined by Quyun WFOE based on its services provided including various factors such as Quyun WFOE’s incurred technology support and consulting services fees, performance data and Jifen VIE’s revenues. The term of this agreement will expire in 10 years and may be extended at Quyun WFOE’s request prior to the expiration date. Quyun WFOE is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Jifen VIE. There was no service fee paid and payable from Jifen VIE to Quyun WFOE for the years ended December 31, 2018, 2019 and 2020 as Jifen, in aggregated, has been incurring losses. Exclusive Option Agreement The parties to the exclusive option agreement entered are Jifen VIE, Quyun WFOE and each of the shareholders of Jifen VIE. Under the exclusive option agreement, each of the shareholders of Jifen VIE irrevocably granted Quyun WFOE or its designated representative(s) an exclusive option to purchase, to the extent permitted under PRC law, all or part of his or its equity interests in Jifen VIE and all or part of assets of Jifen VIE. Quyun WFOE or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. The exercise price shall be the lowest allowable share purchase amount permitted by the PRC law for the 100% equity interest (or pro-rata Voting Rights Proxy Agreement The parties to the exclusive option agreement are Jifen VIE, Quyun WFOE and each of the shareholders of Jifen VIE, with the exception of The Paper (see below for additional information on The Paper arrangement). Under the agreement, each of the shareholders of Jifen VIE irrevocably granted Quyun WFOE or its designated representative(s) the right to exercise his/her rights as a shareholder of Jifen VIE including hosting board of directors meeting, terminate and nominate board members and senior management of Jifen VIE and other shareholders’ voting rights. During the period that each of Shanghai Quyun and Shanghai Jifen remain in operation, the voting rights proxy agreement shall be irrevocable and continuously effective and valid for ten years from the execution date unless otherwise agreed to by all parties. Upon the expiration of the original term or any renewal term of the voting rights proxy agreement, the agreement shall be automatically renewed for an additional one year period unless, at least 30 days prior to the expiration date, Shanghai Quyun provides notice to the other parties to the voting rights proxy agreement not to renew the agreement. Loan Agreement Quyun WFOE has entered into an interest-free loan agreement with Jifen VIE, which may only be used for the purpose of business operations and development of Jifen VIE. Under the terms of the agreement, Quyun WFOE is going to provide unconditional financial support to Jifen VIE and the amount would be agreed between Quyun WFOE and Jifen VIE. Jifen VIE along with its subsidiaries pledge all its shares equity for the outstanding loan. Also, the maturity date of the loan is the earlier of 10 years, the end of Quyun WFOE’s operation period or the end of Jifen VIE’s operation period. Upon maturity, Quyun WFOE or its designated third party may purchase the equity interests in the Jifen VIE at a price equal to the lowest allowable amount for a similar transaction per PRC laws, rules and regulations. Quyun WFOE can also accelerate the payment terms of Jifen VIE to repay the loan using its shares/equity. Additionally, Quyun WFOE should provide unconditional capital support to Jifen VIE. Equity Interest Pledge Agreement Pursuant to the equity interest pledge agreement between Quyun WFOE and the shareholders of Jifen VIE, with the exception of The Paper (see below for additional information on The Paper arrangement), the shareholders of Jifen VIE has pledged all of their equity interests in Jifen VIE to Quyun WFOE to guarantee the performance by Jifen VIE and its shareholders’ performance of their respective obligations under the exclusive option agreement, exclusive technology support and business services agreement, voting rights proxy agreement and loan agreement. If Jifen VIE and/or its shareholders breach their contractual obligations under those agreements, Quyun WFOE, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Jifen, under Generally Accepted Accounting Principles in the United States (“US GAAP”), is considered to be a consolidated VIE in which the Company, or its subsidiaries, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or one of its subsidiaries is the primary beneficiary of the entity. Through the aforementioned contractual agreements, the Company has the ability to: • exercise effective control over Jifen whereby • receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from the Jifen as if it was their sole shareholder; and • have an exclusive option to purchase all of the equity interests in Jifen. Management evaluated the relationships among the Company, Quyun WFOE and Jifen VIE, and concluded that Quyun WFOE is the primary beneficiary of Jifen VIE. As a result, Jifen’s results of operations, assets and liabilities have been included in the Group’s consolidated financial statements for all the presented periods. The Group’s other VIEs entered into the VIE Agreements (Exclusive Technology Support and Consulting Services Agreement, Exclusive Option Agreement, Voting Rights Proxy Agreement, Loan Agreement and Equity Interest Pledge Agreement) which have the same terms as those described in Jifen VIE. As a result, these VIEs’ primary beneficiaries are Quyun WFOE and Zhicao WFOE and their shareholders became the “Nominee Shareholders”. In September 2019, Jifen VIE issued equity interests representing 1% of its enlarged share capital to Shanghai Dongfang Newspaper Co., Ltd., commonly known as “The Paper” at a nominal price. The Paper has designated one representative to Jifen VIE’s Board of Directors to assist with enhancing the quality of contents and ensure the content compliance with the applicable laws on the Company’s platform but does not participate in the VIE’s operational decision making. The Paper will not absorb the losses allocation, if any, from the Jifen VIE. The Company believes that its control over the consolidated VIE and its subsidiaries and the economic benefits received from the consolidated VIE will not be affected and will continue to consolidate the VIE. The % equity interests held by The Paper represents a non-controlling interest of the Group. (c) Going Concern The Group has incurred losses from operations since inception. The Group incurred net losses of RMB1,945.8 million, RMB2,689.3 and RMB1,105.2 million for the years ended December 31, 2018, 2019 and 2020, respectively. Accumulated deficit amounted to RMB4,862.5 million and RMB6,007.2 million as of December 31, 2019 and 2020, respectively. Net cash used in operating activities was approximately RMB434.8 million, RMB2,367.3 million and RMB863.8 million for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the Group’s working capital was RMB816.5 million and RMB586.3 million, respectively. As of December 31, 2020, the Group had cash and cash equivalent of RMB494.5 million, restricted cash of RMB100.3 million and short-term investments of RMB391.0 million, and total current and long-term liabilities of RMB1,886.0 million and RMB1,221.7 million, respectively. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on the Group’s ability to reduce cash used in operating activities, obtain capital financing from equity or debt investors and adjust the pace of its operation expansion and control of the related expense to fund its general operations and capital expansion needs. The Group’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plans, which include adjusting the pace of its operation expansion and controlling operating cost and expenses, mainly user acquisition and engagement costs, to reduce the cash used in operating cash flows. To implement the plans, the Company will continue to enhance user engagement and retention by offering higher quality and diversified contents while closely control the content costs with more selective content acquisition and better leverage of existing content varieties, and continue to optimize the user loyalty programs and the traffic acquisition strategy to efficiently control and reduce these user related costs. The Company will further preserve liquidity and manage cash flows by reducing discretionary expenditure including advertising expenses and general and administrative expenses . Management has concluded, after giving consideration to its plans as noted above, that they have alleviated the substantial doubt as to its ability to continue as a going concern and believes the Company has sufficient cash and other financial resources and liquidity to fund its operations for one year from the date of the filing of the consolidated financial statements, and that there is not substantial doubt about the Company’s ability to continue operations as a going concern for that one-year Additionally, as discussed in Note 14 to the consolidated financial statements, the Company has a convertible loan of US$171.1 million that will mature on April 4, 2022. Given the significance of the amount repayable upon maturity, the maturity of the convertible loan will have a significant impact on the Company’s liquidity. Management’s plans to mitigate the impact of the liquidity due to the maturity of the convertible loan include: 1) generating cash flows from operations or obtaining external financing to repay the loan, 2) negotiating with the creditor to renew the loan, and 3) negotiating with the creditor to adjust down the conversion price and converting the loan into the Company’s ordinary shares, which could have a dilution impact to the existing shareholders. However, it is uncertain whether the management’s plans will be successfully implemented. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies | 2. Principal Accounting Policies (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Company believes that revenue recognition, liabilities related to loyalty programs, consolidation of VIEs, allowance for credit losses, determination of share-based compensation and impairment assessment of long-lived assets reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements 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 materially differ from these estimates. (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and a VIEs’ subsidiaries for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, its 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. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIEs’ economic performance, and also the Group’s obligation to absorb losses of the VIEs that could potentially be significant to the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. The Company’s WFOEs and ultimately the Company hold all the variable interests of the VIEs and its subsidiaries, and have been determined to be the primary beneficiaries of the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of VIEs and its subsidiaries, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and its subsidiaries are eliminated in the balances presented below: As of December 31, 2019 December 31, 2020 Assets Current assets Cash and cash equivalents 7,807,740 12,083,788 Restricted cash 27,871,552 64,315,940 Short-term investments 31,430,000 98,350,000 Accounts receivable, net 526,689,373 737,789,173 Amount due from subsidiaries of the Company 548,857,973 1,173,052,601 Amount due from related parties 262,581,158 368,465,174 Prepayments and other current assets 172,737,341 330,887,406 Total current assets 1,577,975,137 2,784,944,082 Non-current Property and equipment, net 23,152,687 16,961,356 Accounts receivables, non-current — 54,638,516 Long-term investments 10,000,000 8,000,000 Right-of-use 61,931,400 48,109,166 Intangible assets 4,029,056 7,821,323 Other non-current 14,211,365 143,824,997 Total non-current 113,324,508 279,355,358 Total assets 1,691,299,645 3,064,299,440 Liabilities Current liabilities Short-term borrowing — 50,000,000 Accounts payable 313,189,188 399,857,773 Amount due to subsidiaries of the Company 2,734,962,567 5,426,800,647 Amount due to related parties 3,330,101 4,294,733 Registered users’ loyalty payable 127,253,323 66,180,291 Advance from customers and deferred revenue 246,251,382 140,776,350 Salary and welfare payable 126,884,752 115,307,402 Tax payable 93,025,726 98,797,489 Lease liabilities, current 31,275,663 20,030,138 Accrued liabilities related to users’ loyalty programs 89,184,947 100,087,815 Accrued liabilities and other current liabilities 761,687,143 607,455,490 Total current liabilities 4,527,044,792 7,029,588,128 Lease liabilities, non-current 25,279,037 23,533,711 Total liabilities 4,552,323,829 7,053,121,839 Year ended December 31, 2018 2019 2020 Net revenues 3,065,573,756 5,627,372,568 5,283,682,290 Net loss (1,882,747,022 ) (2,469,063,768 ) (1,096,208,019 ) Year ended December 31, 2018 2019 2020 Net cash provided used in operating activities (77,218,211 ) (2,782,745,243 ) (391,006,589 ) Net cash provided by/(used in) investing activities 90,767,728 (60,545,682 ) (80,506,432 ) Net cash provided by/ (used in) financing activities (5,402,941 ) 2,859,505,971 512,233,457 Net increase in cash and cash equivalents 8,146,576 16,215,046 40,720,436 In accordance with the aforementioned VIE agreements, the Company has power to direct activities of the VIEs, and can have assets transferred out of VIEs. Therefore the Company considers that there is no asset in VIEs that can be used only to settle obligations of the VIEs, except for registered capital, as of December 31, 2019 and 2020. As the VIEs and their subsidiaries were incorporated as limited liability Company under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the VIEs. There were no pledges or collateralization of the Affiliated Entities’ assets. As the Company is conducting its business mainly through the Affiliated Entities, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. There is no VIEs where the Company has variable interest but is not the primary beneficiary. The Group believes that the contractual arrangements among its shareholders and WFOEs comply with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of the VIEs were to reduce their interests in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control the VIEs also depends on the voting rights proxy and the effect of the share pledge under the Equity Interest Pledge Agreement and the WFOEs have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this voting right proxy is legally enforceable but may not be as effective as direct equity ownership. (d) Functional Currency and Foreign Currency Translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters. Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expense items are generally translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are accumulated as a separate component of shareholders’ deficit on the consolidated financial statement. The exchange rates used for translation on December 31, 2019 and December 31, 2020 were US$1.00= RMB6.9762 and RMB 6.5249, respectively, representing the index rates stipulated by the People’s Bank of China. (e) Convenience Translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive loss and consolidated statement of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1 = RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the US Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. (f) Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy 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. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring 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. The Group’s financial instruments consist principally of cash and cash equivalents, short-term investments, accounts receivable, equity securities, short-term borrowings, accounts payable, advance from advertising customers, registered users’ loyalty payable, other liabilities, and convertible loan. As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, short-term investments in time deposits, current accounts receivable, non-marketable The estimated fair value of noncurrent accounts receivable approximates the carrying value as the discounting impact is not material. The estimated fair value of the long-term convertible loan approximated its carrying amount of RMB1,174.9 million as the stated interest rate of the loan is close to the market rate. The convertible loan would qualify as Level 3 in the fair value hierarchy if it was to be carried at fair value due to the presence of significant unobservable inputs. Assets and liabilities measured at fair value on a recurring basis On a recurring basis, the Group measures its short-term investments in wealth management products and publicly traded equity security at fair value. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2019 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — Wealth management products — 314,812,946 — 314,812,946 As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — Wealth management products — 354,847,029 — 354,847,029 Short-term investments — Equity investment in a publicly traded security 36,186,345 — — 36,186,345 The Group values its investments in wealth management products issued by certain banks using quoted subscription/redemption prices published by these banks, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. Assets and liabilities measured at fair value on a non-recurring The equity securities without readily determinable fair value are measured at fair value on a non-recurring (g) Cash and Cash Equivalents Cash and cash equivalents include cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash. (h) Restricted cash As of December 31, 2020, restricted cash of RMB100.3 million represents the cash balance of RMB64.3 million that were frozen as a result of a pending litigation (Refer to Note 24 – Commitments and Contingencies) as well as RMB36.0 million which was frozen in cooperation with an ongoing investigation of one of the Group’s customers. (i) Short-term investments Short-term investments include time deposits with original maturities between three months and a year with banks in the PRC, investments in wealth management products issued by certain banks which are redeemable by the Company at any time, and a publicly traded equity security that’s listed on the Hong Kong Stock Exchange. The company classifies investments as current based on the nature of the investments and their availability for use in current operations. The wealth management products are unsecured with variable interest rates and primarily invested in debt securities issued by the PRC government, corporate debt securities and central bank bills. The Company measures the investments in wealth management products at fair value using the quoted subscription or redemption prices published by these banks. As of December 31, 2020, no allowance for credit losses in short-term investments was recorded. Refer to Note 6 – Investments for additional information. (j) Accounts receivable, net Accounts receivable represents those receivables derived in the ordinary course of business, net of an allowance for any potentially uncollectible amounts, and are classified as current or long-term in accordance with customer payment terms. The Company makes estimates of expected credit and collectibility trends for the allowance for credit losses based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions that may vary by geography, customer-type, or industry sub-vertical, Although the Company has historically not experienced significant credit losses, they may experience increasing credit loss risks from accounts receivable in future periods if its customers are adversely affected by economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 (k) Property and equipment, net 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. The estimated useful lives are as follows: Leasehold improvements Over the shorter of lease term or estimated useful lives of the assets Office equipment 3 Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive loss. (l) Long-term equity investments The Company’s equity investments are accounted for as follows: • Non-marketable subsequent Any changes in carrying vaue of these equity investments is recorded in the consolidated statements of comprehensive income/loss. Company per ASC 820 to measure these investments at fair value. • Equity method investments are securities that the Company does not control, but is able to exert significant influence over the investments. These investments are initially records at cost and subsequently recognizes proportionate share of each equity investee’s net income or loss and to reflect the amortization of basis differences in the consolidated statements of comprehensive loss and accordingly adjusts the carrying amount of the investments. An impairment charge is recorded if the carrying amount of the investments exceed their fair value and this condition is determined to be other-than-temporary. When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investe. The Company 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. Refer to Note 6 – Investments for additional information. (m) Goodwill and intangible assets Intangible assets Intangible assets represent the acquired right to operate an online audio/video content platform, which is amortized on a straight-line basis over its estimated useful life of 10 years, and computer software, which is amortized on a straight-line basis over its estimated useful life of 3-10 years. The estimated life of intangible assets subject to amortization is reassessed if circumstances occur that indicate the life has changed. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. No impairment of intangible assets was recognized for the years ended December 31, 2018, 2019 and 2020. Goodwill Goodwill represents the excess of the total cost of the acquisition over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and VIEs. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying value. In the qualitative assessment, the Company 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 reporting unit does not pass the qualitative assessment, the Company estimates its fair value and compares the fair value with the carrying value of its reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the consolidated statements of operations. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets, liabilities and goodwill to reporting units and the determination of the fair value of each reporting unit. The Company estimates the fair value of the reporting unit using a discounted cash flow model. This valuation approach considers various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on management’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, as well as industry and general economic data from third party sources. Discount rate assumptions reflect an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Management performs its annual goodwill impairment test as of December 31. Each quarter the Company reviews the events and circumstances to determine if there are indicators that goodwill may be impaired. As of December 31, 2019 and 2020, there is no event or any circumstance that the Company identified, which indicated that the fair value of the Company’s reporting unit was substantially lower than the respective carrying value. There was no impairment of goodwill for the years ended December 31, 2018, 2019 and 2020 and there was no change in goodwill during 2019 and 2020. (n) Impairment of long-lived assets other than Goodwill For other long-lived assets including non-current (o) Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use non-current ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: non-lease non-lease (p) Short-term borrowings As of December 31, 2020, the Company had short-term borrowings from two banks of RMB70.0 million in aggregate, which were repayable in six months. The annualized interest rates of these borrowings are approximately 3% to 4%. (q) Advances from customers and deferred revenue Certain third party advertising customers pay in advance to purchase advertising and marketing services. Cash proceeds received from customers are initially recorded as advances from advertising customers and are recognized as revenues when revenue recognition criteria are met. Advances from customers and deferred revenue also consist of prepayments from users in the form of the purchase of the Group’s virtual currency that can be used for live streaming and online games that are not yet consumed or converted into virtual items, and that upon the consumption or conversion, are recognized as revenue according to the prescribed revenue recognition policies described below. (r) Revenue recognition The following is a description of principal activities of the Group from which the Group generates its revenue under ASC 606. (i) Advertising and marketing The Group’s main revenue generating activity is the provision of online advertising and marketing services. The Group generates revenue from performing specific actions, i.e. an optimized cost per thousand impressions (“oCPM”) or optimized cost per click (“oCPC”) basis or related advertising and marketing services. Revenue is recognized on an oCPM or oCPC basis as impressions or clicks are delivered, or when related advertising and marketing services are performed. Whether revenues should be reported on a gross or net basis is determined by an assessment of whether the Group is acting as the principal or an agent in the transaction. In determining whether the Group acts as the principal or an agent, the Group follows the accounting guidance for principal-agent considerations. Such determination involves judgment and is based on evaluation of the terms of each arrangement. a. Advertising and marketing service provided to advertising customers Before February 2018, the Group engaged certain advertising customers through a third-party advertising agent (“advertising agent”). In the arrangement with this advertising agent, it served as the Group’s sales agent in selling the Group’s advertising solutions to other second-tier advertising agents. The end advertisers are the customers of the Group as they specifically selected Qutoutiao to display their advertisement and the performance obligation of the Group is to provide the underlying advertising display services. The advertising agent earns a commission of approximately % on average of the advertising revenues in the arrangement in return for providing bidding system for placement on Qutoutiao which the Company recognized as cost of revenues. The Group provides advertising and marketing services to advertising customers and recognizes advertising and marketing revenues on a gross basis as impressions or clicks are delivered. The Group receives refundable advance payments from advertising customers through this advertising agent and reconciles the advertising and marketing revenue with this advertising agent. If the advance payment deposited in the Group is not ultimately used for the advertisement on Qutoutiao, the Group refunds the advance payment back to advertising customers through this advertising agent. In February 2018, the Group acquired 100% equity interests of this advertising agent with a total consideration of RMB 15.0 million (Note 3). Since the acquisition, the Group has effectively been providing advertising and marketing services to these advertising customers directly and continues to recognize revenue on a gross basis as clicks or impressions are delivered. Besides this arrangement, the Group also provides advertising and marketing services to advertising customers directly. Starting from 2019, the placement of the advertising customers’ advertisements is not restricted to be only on Qutoutiao’s application. When advertisements cannot be placed on Qutoutiao due to capacity limit or bidding, the Group has the discretion to choose a media platform for advertisement placement. The Group determined it is the principal to the advertising customer when the Group (1) is the primary obligor ultimately responsible for delivering advertising and marketing services to the advertising customers, (2) has the discretion in pricing and (3) takes certain risks of loss due to the different settlement methods between the media platform and advertising customers. Hence, the Group recognizes the revenue on a gross basis. In May 2019, the Group also started a new advertising and marketing service by providing integrated marketing solution to its customers based on their customized needs. The services include but are not limited to designing and executing a systematic marketing plan online and offline, coming up with best solutions for online promotion of the customers’ mobile application by selecting appropriate advertisement platforms, designing the advertisement clips, monitoring advertisement effects and organizing offline marketing campaigns. The Group pays the vendors or suppliers when costs are incurred and advertisements are displayed while the Group charges the service fees to the customers based on specified achievements, i.e. a Gross Merchandise Volume (“GMV”) which revenue is recognized based on number of first effective purchase, or optimized cost per action (“oCPA”) basis which revenue is recognized based on number of registered new users. The Group is the principal ultimately responsible for delivering the integrated marketing services to the customers in the arrangement, it has the discretion in pricing and takes certain risks of loss as the results cannot be guaranteed while costs are incurred. The Group recognizes the integrted marketing services revenue at gross based on GMV or oCPA basis and recognizes incurred expenses to vendors or suppliers as cost of revenue. b. Advertising and marketing services provided to advertising platforms The Group provides advertising and marketing services to other third-party advertising platforms. In the arrangement with these advertising platforms, these advertising platforms are the customers of the Group and the performance obligation of the Group is to provide traffic service to these advertising platforms. Therefore, the Group recognizes revenue based on the net amount as impressions or clicks are delivered. (ii) Other services a. Agent and platform service After the acquisition of the advertising agent in February 2018 (Note 3), the Group also provides agent and platform service by facilitating the advertising customers to select third-party advertising platforms to display their advertisements. The Group recognizes revenue from the advertising customers based on the net amount equal to certain agreed percentage of the gross revenue earned by the third-party advertising platforms when impressions b. Live streaming In January 2019, the Group started operating its own live streaming platform. It generates revenue from sales of virtual items in the platform. Users can access the platforms and view the live streaming content showed by the performers for free. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with performers and talent agencies in accordance with their revenue sharing arrangements. The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts paid by users to purchase virtual items are recorded as revenues and revenue sharing fee paid to performers and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined The Group may also enter into contracts that can include various combinations of virtual items and privileges such as priority speaking rights or special symbols, which are generally capable of being distinct and accounted for as separate performance obligations, such as the VIP member program. Judgments are required as follow: 1) determining whether those virtual items and privilege are considered distinct performance obligations that should be accounted for separately versus together, 2) determining the standalone selling price for each distinct performance obligation, and 3) allocating of the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. In instances where standalone selling price is not directly observable as the Group does not sell the virtual item or privilege separately, the Group determines the standalone selling price based on pricing strategies, market factors and |
Significant Equity Transactions
Significant Equity Transactions and Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Significant Equity Transactions And Acquisitions [Abstract] | |
Significant Equity Transactions and Acquisitions | 3. Significant equity transactions and acquisitions (a) Initial public offering In September 2018, the Company completed its initial public offering on the NASDAQ Global Market of 13,800,000 American Depositary Shares (“ADS”) (including 1,800,000 ADSs sold upon the full exercise of the underwriters’ over-allotment option) (every four ADS represents one Class A ordinary share, for a total ordinary shares offering of 3,450,000 shares), at a price of US$7.00 per ADS for a total offering size of approximately US$96.6 million. The net proceeds raised from the IPO amounted to approximately RMB 590.9 million (US$85.9 million) after deducting underwriting discounts and commissions and other offering expenses. Upon the completion of the IPO, all classes of preferred shares of the Company were converted and designated as Class A ordinary shares on a one-for-one one-for-one one-for-one In respect of all matters subject to shareholders’ vote, each holder of Class A ordinary share is entitled to one and each holder of Class B ordinary share is entitled to ten votes. (b) Follow-on On April 5, 2019, the Company completed a follow-on follow-on (c) Issuance of ordinary shares to The Paper On September 23, 2019, Qutoutiao Inc. obtained the relevant PRC government approval and completed a share purchase agreement with The Paper. The Company issued 1,480,123 Class A ordinary shares for an aggregate cash consideration of US$20,408,467 (RMB 144.4 million), amounting to a cash consideration of US$13.79 per share (US$3.45 per ADS). As part of the share issuance, The Paper will also carry out the performance of certain strategic cooperation agreements for an annual fee charge to Jifen VIE, for five years. The difference of US$1,201,625 (RMB8.4 million) between the fair value of the shares issued to The Paper (i.e. the share price on issuance day) and the cash consideration paid is also considered an incremental cooperation service fee and will be amortized to expense over a service period of five years. In addition, Jifen VIE issued equity interests representing 1% of its enlarged share capital to The Paper at a nominal price (Note 2(b)). (d) Business acquisition The Company accounted for its acquisition in accordance with ASC 805, “Business Combination” (“ASC 805”). The result of the acquiree’s operation has been included in the consolidated financial statements since the acquisition date. The excess of the fair value of the acquired entity over the fair value of net tangible and intangible assets acquired was recorded as goodwill, which is not deductible for corporate income taxation purposes. Acquisition of Dianguan In February 2018, the Company acquired 100% equity interests of Dianguan, an advertising agent (Note 2(n)), from its shareholder for a cash consideration of RMB 15.0 million. The acquisition was recorded as a business combination. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Fair value of consideration transferred: RMB Cash 15,000,000 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 4,270,175 Short-term investments 9,940,000 Prepayments and other current assets 30,936,027 Property and equipment, net 17,978 Accounts payable (364,242 ) Salary and welfare payable (778,438 ) Tax payable (9,933,408 ) Advance from advertising customers (24,664,513 ) Accrued liabilities and other current liabilities (1,691,909 ) Total identifiable net assets acquired 7,731,670 Goodwill 7,268,330 Total purchase consideration 15,000,000 The excess of purchase price over tangible assets and identifiable intangible assets acquired and liabilities assumed was recorded as goodwill. Goodwill associated with acquisition of Dianguan was attribute to the expected synergy arising from the consolidation operations. The acquired goodwill is not deductible for tax purposes. Acquisition-related costs were insignificant and were included in general and administrative expenses for the year ended December 31, 2018. Based on the Company’s assessment, the revenues and net earnings of Dianguan were not considered material in 2018 prior to the acquisition date. Pro forma results of operations for the acquisition described above have not been presented because they are not material to the consolidated statements of operations and comprehensive loss, either individually or in aggregate. |
Risks and Concentration
Risks and Concentration | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Concentration | 4. Risks and Concentration (a) PRC regulations (1) VIEs Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the PRC government regulates telecommunications-related businesses through strict business licensing requirements and other government regulations. These laws and regulations also include limitations on foreign ownership of PRC companies that engage in telecommunications-related businesses. Specifically, foreign investors are not allowed to own more than a 50% equity interest in any PRC company engaging in value-added telecommunications businesses. The primary foreign investor must also have experience and a good track record in providing value-added telecommunications services, or VATS, overseas. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign owned entities, like the Company, may operate. The Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate areas such as telecommunication, information and media. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. There are uncertainties regarding the interpretation and application of current and future PRC laws, rules and regulations, including but not limited to the laws, rules and regulations governing the validity and enforcement of the contractual arrangements with consolidated VIEs. The Company believes that the structure for operating its business in China (including the ownership structure and the contractual arrangements with the consolidated VIEs) is in compliance with all applicable existing PRC laws, rules and regulations, and does not violate, breach, contravene or otherwise conflict with any applicable PRC laws, rules or regulations. However, as there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations, including the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, and the Telecommunications Regulations and the relevant regulatory measures concerning the telecommunications industry, there can be no assurance that the PRC government authorities, such as the MOFCOM or the MIIT, or other authorities that regulate Internet content providers and other participants in the telecommunications industry, would agree that the Company’s corporate structure or the contractual arrangements with the consolidated VIEs comply with PRC licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted in the future. PRC laws and regulations governing the validity of these contractual arrangements are uncertain and the relevant government authorities have broad discretion in interpreting these laws and regulations. If the Company’s corporate structure and contractual arrangements are deemed by the MIIT or the MOFCOM or other regulators having competent authority to be illegal, either in whole or in part, the Company may lose control of their consolidated VIEs and have to modify such structure to comply with regulatory requirements. Furthermore, if the Company and its consolidated VIEs are found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, including: • revoking the business and operating licenses; • levying fines on the Company; • confiscating any of the Company’s income that they deem to be obtained through illegal operations; • shutting down the services; • discontinuing or restricting the operations in China; • imposing conditions or requirements with which the Company may not be able to comply; • requiring the Company to change corporate structure and contractual arrangements; • restricting or prohibiting the use of the proceeds from overseas offering to finance the consolidated VIE’s business and operations; and • taking other regulatory or enforcement actions that could be harmful to the business. If the imposition of any of these penalties precludes the Company from operating its business, it would no longer be in a position to generate revenue or cash from it. If the imposition of any of these penalties causes the Company to lose its rights to direct the activities of its consolidated VIEs or its rights to receive its economic benefits, the Company would no longer be able to consolidate these entities, and its financial statements would no longer reflect the results of operations from the business conducted by VIEs except to the extent that the Company receives payments from VIEs under the contractual arrangements. Either of these results, or any other significant penalties that might be imposed on the Company in this event, would have a material adverse effect on its financial condition and results of operations. Nevertheless, the laws and regulations that imposed restrictions on foreign ownership in advertising companies, including the Administrative Provisions on Foreign-Invested Advertising Enterprises were abolished in June 2015. To the extent any current or future business of VIEs can be directly operated by the Company’s wholly owned subsidiaries under PRC law, the Company expect to transfer such business to the Company’s wholly owned subsidiaries. When permissible by the PRC laws and regulations, the Company expects that Quyun WFOE and Zhicao WFOE will replace VIEs and its subsidiary as contracting party for their business that are operated by VIEs and its subsidiary. On March 15, 2019, the National People’s Congress of the PRC adopted the Foreign Investment Law, which came into force on January 1, 2020. The Foreign Investment Law defines the “foreign investment” as the investment activities in China conducted directly or indirectly by foreign investors in the following manners: (i) the foreign investor, by itself or together with other investors establishes a foreign invested enterprises in China; (ii) the foreign investor acquires shares, equities, asset tranches, or similar rights and interests of enterprises in China; (iii) the foreign investor, by itself or together with other investors, invests and establishes new projects in China; (iv) the foreign investor invests through other approaches as stipulated by laws, administrative regulations or otherwise regulated by the State Council. The Foreign Investment Law keeps silent on how to define and regulate the VIEs, while adding a catch-all pre-entry non-compliance It is uncertain whether any of the businesses that the Company currently operate or plan to operate in the future through the consolidated VIEs would be on the “negative list” as updated by the governmental authority from time to time and therefore be subject to any foreign investment restrictions or prohibitions. If any of the businesses that the Copmany operates were in the “restricted” category on the to-be-issued to-be-issued VIEs holds assets that are important to the operation of the Group’s business, including patents for proprietary technology and trademarks. If VIEs falls into bankruptcy and all or part of its assets become subject to liens or rights of third-party creditors, the Group may be unable to conduct major part of its business activities in China, which could have a material adverse effect on the Group’s future financial position, results of operations or cash flows. However, the Group believes this is a normal business risk many companies face. The Group will continue to closely monitor the financial conditions of VIEs. VIEs’ assets comprise both recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include leasehold improvements, computers and network equipment and purchased intangible assets which are recognized in the Company’s consolidated balance sheet. The unrecognized revenue-producing assets mainly consist of patents, trademarks and assembled workforce which are not recorded in the financial statements of VIEs as they did not meet the recognition criteria set in ASC 350-30-25. In accordance with the VIE arrangements, the Group has power to direct activities of the VIEs, and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no assets of the VIEs can be used only to settle their obligations. (2) Inability to fully comply with Audio-visual Program Provisions Pursuant to the Administrative Provisions on Internet Audio-visual Program Service, or the Audio-visual Program Provisions, which was issued by the State Administration of Radio, Film and Television (the predecessor of GAPPRFT), or SARFT, and MIIT on December 20, 2007 and came into effect on January 31, 2008 and was amended on August 28, 2015, online transmission of audio and video programs requires an Internet audio-visual program transmission license and online audio-visual service providers must be either wholly state-owned or state-controlled. In a press conference jointly held by SARFT and MIIT to answer questions with respect to the Audio-visual Program Provisions in February 2008, SARFT and MIIT clarified that online audio-visual service providers that had already been operating lawfully prior to the issuance of the Audiovisual Program Provisions may re-register Although the Group has been taking measures to ensure compliance, the Group may not be able to fully comply with Audio-visual Program Provisions. As a result, the Group may face, according to Audio-visual Program Provisions, administrative sanctions including receiving a warning and be ordered to pay a fine of not more than RMB30,000. In the case of severe contravention, the Group may be ordered to cease transmission of audio and video programs, be subject to a penalty equal to one to two times our total investment in the affected business and the devices the Group used for such operation may be confiscated. Furthermore, according to the Audio-visual Program Provisions, the telecommunications administrative authorities may, based on written opinions of GAPPRFT, and in accordance with the relevant laws and regulations on supervision of telecommunications and Internet, close the Group’s mobile platform, revoke the license for the provision of Internet information services, or the ICP license, and order the relevant network operation entity which provides the Group signal access services to stop such provision of services. The Group believes that the risks of material loss related to inability to fully comply with Audio-visual Program Provisions and fines or penalties are remote. (b) Foreign exchange risk The Group’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of the Group’s liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China. In addition, the Group’s cash denominated in US$ subject the Group to risks associated with changes in the exchange rate of RMB against US$ and may affect the Group’s results of operations going forward. (c) Credit and Concentration risk The Group’s credit risk arises from cash and cash equivalents, short-term investments, prepayments and other current assets, and accounts receivable. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The Group expects that there is no significant credit risk associated with the cash and cash equivalents and short-term investments which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and the Affiliated Entities are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to its prepayments. Accounts receivable are typically unsecured and are derived from revenue earned through third party advertising platforms and customers as well as related parties. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them, and the Company maintains an allowance for estimated credit losses. (i) Concentration of revenues For the years ended December 31, 2018 and 2019, no single customer accounted for more than 10% of total net revenues of the Group, respectively. For the years ended December 31, 2020, Customer A contributed 11% of total net revenue of the Group. (ii) Concentration of accounts receivable The Group has not experienced any significant recoverability issue with respect to its accounts receivable. The Group conducts credit evaluations on its platforms and customers and generally does not require collateral or other security from such platforms and customers. The Group periodically evaluates the creditworthiness of the existing platforms in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. The following table summarized customers with greater than 10% of the accounts receivables, including accounts receivable from related parties: As of December 31, 2019 December 31, 2020 Customer A — advertising platform 16 % 13 % Customer B — advertising platform 11 % * Customer C — advertising and marketing customer (related party – Note 22) 28 % 23 % * Less than 10% (iii) Credit risk The Group’s credit risk arises from cash, restricted cash and cash equivalents, short-term investments, accounts receivables and amounts due from related parties, and prepayments and other current assets. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk. The Group expects that there is no significant credit risk associated with the cash and cash equivalents and short-term investments which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and the Affiliated Entities are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has no significant concentrations of credit risk with respect to its prepayments. Accounts receivable are typically unsecured and are derived from revenue earned through third party advertising platforms and customers as well as from related parties. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them, and continuous evaluation of collectability. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. Cash and cash equivalents Cash and cash equivalents represent cash on hand and time deposits placed with banks or other financial institutions with original maturities less than three months, which are unrestricted as to withdrawal or use. Interest income associated with these deposits amounted to RMB22.2 million, RMB16.0 million and RMB4.1 million in the consolidated statements of comprehensive loss for the years ended December 31, 2018, 2019 and 2020. The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2019 and 2020: RMB RMB equivalent (US$) RMB equivalent (HKD/SGD/IDR) Total in RMB Overseas China Overseas China Overseas China Non VIE VIE Non VIE VIE Non VIE VIE December 31, 2019 — 59,438,015 7,806,771 223,534,731 56,358,066 969 678,541 — — 347,817,093 December 31, 2020 — 84,260,552 12,083,788 361,937,179 35,966,024 — 227,348 — — 494,474,891 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Investments | 6. Investments As of December 31, 2019 and 2020, the Company’s short-term investments are comprised of the following: As of December 31, 2019 December 31, 2020 Time deposits (maturity dates between 3 – 12 months) 962,017,980 — Wealth management products 314,812,946 354,847,029 Publicly traded equity security — 36,186,345 Total short-term investments 1,276,830,926 391,033,374 For time deposits with original maturities between three months and a year, its interest income amounted to RMB4.9 million, RMB32.4 million and RMB6.3 million in the consolidated statements of comprehensive loss for the years ended December 31, 2018, 2019 and 2020, respectively. The change in fair value of short-term investments in wealth management products was recorded as investment income which amounted to RMB4.2 million, RMB6.3 million and RMB5.9 million for the years ended December 31, 2018, 2019 and 2020, respectively. During 2020, the Company invested in publicly traded security listed on the Hong Kong Stock Exchange. The unrealized gain for the security was recorded as investment income which amounted to RMB16.7 million for the year ended December 31, 2020. As of December 31, 2019 and 2020, the Company’s long-term investment in equity securities are comprised of the following: As of December 31, 2019 December 31, 2020 Non-marketable 10,000,000 55,299,509 Equity method investments 27,589,200 27,589,200 Total long-term equity investments 37,589,200 82,888,709 As of December 31, 2020, the Company’s investments in non-marketable non-controlling During the first quarter of 2020, the Company subscribed to shares of an equity fund as a limited partner, with an initial cost of RMB106.0 million. The investment in the fund is nonredeemable for two years after the subscription date and the directors of the fund can extend the non-redemption As of December 31, 2020, the Company’s equity method investment is an investment of RMB27.6 million as a limited partner in a venture fund that has not completed set-up, |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 7. Accounts receivable, net As of December 31, 2019 December 31, 2020 Accounts receivable, gross – current 526,822,932 824,487,072 Accounts receivable, gross – non-current — 54,638,516 Less: allowance for credit losses (1) — (86,697,899 ) Accounts receivable, net 526,822,932 792,427,689 (1) The allowance for credit losses reflects the Group’s estimated probable incurred losses and includes the adoption impact of RMB6.9 million which was recorded to the accumulated deficit on January 1, 2020. The Group assesses the creditworthiness and collectability of the portfolios of respective accounts receivables, mainly based on credit risk, industry risk, historical collection pattern, payment terms and reputations of respective customers with accounts receivable, using an established systematic process on a pooled basis within each credit risk levels of the customers. When assigning customers into different credit risk levels, factors like capital condition, reputation, industry, collection history, and external credit references of the customers are considered. In the consideration of above factors, the Group determines that each portfolio of respective accounts receivables subject to credit losses within each credit risk level is homogenous with similar credit characteristics. |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepayments and Other Assets | 8. Prepayments and other assets The other assets consist of the following: As of December 31, 2019 December 31, 2020 Prepayment and other current assets Value-added tax receivable 48,451,205 52,411,862 Prepayments of advertisement fee (2) 1,456,410 23,342,714 Deposit to third-party payment service providers (1) 62,240,852 19,838,590 Deposit to third-party advertising platforms (4) 16,821,962 15,144,830 Loans and advance to employees (5) 8,723,553 11,309,123 Lease deposits-current portion 4,647,787 10,059,017 Prepayment for the use of contents (3) 34,361,525 224,975,224 Prepayments of business insurance 3,607,569 3,131,906 Cooperation service fee-current 1,676,555 1,568,097 Prepayments of IT service fee 1,110,150 419,715 Prepayment of office lease 93,783 43,104 Receivable for share option exercises (7) 22,212,500 — Contract assets (6) 18,867,925 — Interest receivables 4,272,559 — Others 6,184,051 2,864,321 234,728,386 365,108,503 Non-current Prepayment for intangible assets (Note 21) — 136,133,193 Long-term cooperation service fee (Note 3c) 6,251,505 4,266,143 Long-term lease deposits 7,944,497 3,891,804 Prepayment for purchase of intangible asset — 3,800,000 Long-term prepayments of advertisement fee (2) 6,615,789 — Total 20,811,791 148,091,140 (1) Deposit to third party payment service providers represent cash prepaid to the Group’s third party on-line a (2) Prepayments of advertisement fee represent prepayments made to service providers for future services to promote the Company’s mobile applications through online and media advertising. Such service providers charge expenses based on activities during the month, and once confirmed by the Company, the expenses will be deducted from the prepayments already made by the Company. Prepayments of advertising fee is recorded when prepayments are made to service providers and are expensed as services are provided. (3) Prepayment for the use of contents represents the payment to the content providers for the use of the content on the Company’s mobile applications for a period from 6 (4) Deposit to third-party advertising platforms represents the deposit made to third-party advertising platforms that the Group provides agent and platform service by facilitating the advertising customers to select third-party advertising platforms to display the advertisements. The deposit is used to secure the timely payment of the agent and platform service fee received by the Group to the third-party platforms. (5) Loans to employees mainly represents loans to the employees to meet their personal needs for a period within one year. (6) In June 2019, the Company entered into one-year non-monetary (7) Receivables for share option exercises represent incoming proceeds to be received by the Company on behalf of employees, executives and directors for the sale of the shares as a result of the exercise of share options by these personnel. The gross proceeds will be remitted to the Company by a designated financial institution, which the Company is then obligated to transfer to the relevant personnel once the proceeds are received by the Company. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 9. Property and equipment, net Property and equipment consist of the following: As of December 31, 2019 December 31, 2020 Cost: Office equipment 26,203,041 24,261,802 Leasehold improvements 12,575,518 17,948,499 Total cost 38,778,559 42,210,301 Less: Accumulated depreciation (14,663,185 ) (24,997,502 ) Property and equipment, net 24,115,374 17,212,799 Depreciation expense recognized for the years ended December 31, 2018, 2019 and 2020 are summarized as follows: Year ended December 31, 2018 2019 2020 Cost of revenues 156,725 3,182,644 3,463,304 Research and development expenses 3,238,987 5,075,929 6,653,321 Sales and marketing expenses 417,934 959,610 973,899 General and administrative expenses 477,638 785,472 1,053,401 Total 4,291,284 10,003,655 12,143,925 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 10. Intangible assets, net Intangible assets consist of the following: As of December 31, 2019 December 31, 2020 Cost: Acquired right to operate an online audio/video content platform including deferred tax liabilities impact 96,129,761 96,129,761 Computer software 4,971,310 12,176,338 Total cost 101,101,071 108,306,099 Less: Accumulated amortization (12,157,392 ) (25,183,127 ) Intangible assets, net 88,943,679 83,122,972 The right to operate an online audio/video content platform was acquired on November 1, 2018 through an acquisition of 100% equity interests of a company for a total cash considerations of RMB 72.1 million and is owned by a consolidated VIE of the Group upon the completion of the transaction. The acquisition was accounted for as an asset acquisition rather than a business combination as what the company acquired did not meet the criteria of a business and substantially all of the fair value of the gross assets acquired was concentrated in a single asset, which met the screen test criteria to be an asset acquisition for the adopted ASU 2017-01. Amortization expense for intangible assets for the years ended December 31, 2018, 2019 and 2020 is as follows: Year ended December 31, 2018 2019 2020 Cost of revenues 1,602,163 9,612,976 9,612,976 General and administrative expenses — 942,253 3,412,759 Total 1,602,163 10,555,229 13,025,735 Future intangible asset amortization as of December 31, 2020 is as follows: Year ended December 31, Amortization Expense 2021 13,562,123 2022 12,635,179 2023 10,399,789 2024 9,637,359 2025 9,637,359 Thereafter 27,251,163 Total 83,122,972 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 11. Leases The Company leases facilities under non-cancellable right-of-use (a) The components of lease expenses were as follows: Year ended December 31, 2019 2020 Lease cost: Amortization of right-of-use 39,693,063 39,371,454 Interest of lease liabilities 3,820,727 1,833,789 Expenses for short-term leases within 12 months 423,271 6,093,217 Total lease cost 43,937,061 47,298,460 (b) Supplemental cash flow information related to leases was as follows: Year ended December 31, 2019 2020 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 45,584,621 39,073,120 Right-of-use 55,834,552 20,448,582 (c) Supplemental balance sheet information related to leases was as follows: Year ended December 31, 2019 2020 Operating leases Operating lease right-of-use 69,241,754 50,318,882 Operating lease liabilities, current (38,210,188 ) (20,760,421 ) Operating lease liabilities, non-current (26,651,446 ) (23,755,721 ) Total operating lease liabilities (64,861,634 ) (44,516,142 ) As of December 31, 2019 2020 Weighted-average remaining lease term Operating leases 2.2 years 2.5 years Weighted-average discount rate Operating leases 5.7 % 5.7 % (d) Maturities of lease liabilities were as follows: As of December 31, 2020 2021 22,591,187 2022 11,815,301 2023 8,942,549 2024 and thereafter 4,460,436 Total undiscounted lease payments 47,809,473 Less: imputed interest (3,293,331 ) Total lease liabilities 44,516,142 (e) Future minimum lease payments for the Company’s operating leases were as follows: As of December 31, 2020 2021 29,679,352 2022 19,570,885 2023 10,179,846 2024 and thereafter 5,089,923 64,520,006 |
Tax Payable
Tax Payable | 12 Months Ended |
Dec. 31, 2020 | |
Tax Payable [Abstract] | |
Tax Payable | 12. Tax payable As of December 31, 2019 December 31, 2020 Value added tax 91,894,179 73,804,596 Corporate income tax 7,246,119 5,374,231 Individual income tax withholding 17,821,617 16,516,542 Urban maintenance and construction tax 697,134 712,407 Stamp duty 497,445 735,809 Total 118,156,494 97,143,585 The Group’s revenues are subject to value-added tax at a rate of approximately 6%. |
Accrued Liabilities and Other L
Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other Liabilities | 13. Accrued liabilities and other liabilities As of December 31, 2019 December 31, 2020 Accrued liabilities and other current liabilities Accrued advertising and marketing expense 624,684,280 610,330,541 Tax surcharges and other fees (1) 134,003,155 134,174,460 Accrued professional service fees 4,695,155 4,381,461 Accrued convertible redeemable preferred shares issuance cost of a subsidiary 435,000 3,135,298 Refund from depositary bank (2) 2,640,471 2,469,655 Payables to employees related to net proceeds from share options exercised 18,439,722 — Accrued employee welfare expense 1,547,431 — Others 2,050,228 8,942,857 788,495,442 763,434,272 Non-current Non-refundable (2) 7,212,463 4,255,931 Total 795,707,905 767,690,203 (1) This balance is primarily related to a cultural development fee on the provision of advertising services in the PRC that the Group is subject to. The applicable tax rate was 3% of the net advertising revenues up until June 30, 2019, and was updated to 1.5% effective July 1, 2019. Due to the COVID-19 (2) The Company received non-refundable |
Convertible Loan
Convertible Loan | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible loan | 14. Convertible Loan On March 28, 2019, the Company entered into a convertible loan agreement with Alibaba Investment Limited (“Alibaba”), pursuant to which Alibaba advanced approximately US$171.1 million (RMB1,147.0 million) in aggregate principal amount, which will mature on (the “Convertible Loan”). The Convertible Loan will bear interest at a rate of % per annum, which will be waived in case of conversion or payable at maturity. The Convertible Loan will be unsecured and unsubordinated and mature in after the drawdown, unless previously repaid or converted in accordance with their terms prior to such date. The Convertible Loan may be converted at Alibaba’s option on or after (i) the date falling 240 calendar days after the date of the agreement, which was extended to 422 calendar days pursuant to a supplemental agreement entered into with Alibaba in October 2019 and further extended to 605 calendar days pursuant to a supplemental agreement entered into in March 2020 or (ii) upon the occurrence of an event of default (as defined in the indenture agreement) at a conversion price of US$60.00 per ordinary share, equivalent to US$15.00 per ADS, subject to adjustment under the terms of the indenture agreement. The Company assessed the Convertible Loan under ASC 815 and concluded that: • Since the conversion option is considered indexed to the Company’s own stock, bifurcation of conversion option from the Convertible Loan is not required as the scope exception prescribed in ASC 815-10-15-74 • There was no BCF attribute to the Convertible Loan as the set conversion price for the Convertible Loan was greater than the fair value of the ordinary share price at date of issuance; Considering the above, the Company has accounted for the Convertible Loan in accordance with ASC 470 as a single instrument as a long-term liability; the value of the Convertible Loan was measured by the cash received of US$ 171.1 million (RMB1,147.0 million). The , , the carrying value of the Company’s Convertible Loan, including accrued interest of RMB million, was RMB million. Interest expenses recorded amounted to RMB million and RMB million for the years ended December , and , respectively. |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Shares | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Redeemable Preferred Shares | 15. Convertible redeemable preferred shares On September 29, 2017, the Company issued 4,945,055 shares of Series A convertible redeemable preferred shares (the “Series A Shares”) for US$6.5520 per share for cash of US$32,400,000. On November 14, 2017, the Company issued 1,373,626 shares of Series A1 convertible redeemable preferred shares (the “Series A1 Shares”) for US$7.2800 per share for cash of US$10,000,000. On March 4, 2018, the Company issued 5,420,144 shares of Series B1 convertible redeemable preferred shares (the “Series B1 Shares”) for US$19.3722 per share for cash of US$105,000,000. Subsequent to the Series B1 Closing, the investor, who is a leading provider of Internet Value-added Services, and the Company’s PRC entities entered into a cooperation agreement that the investor will promote the Company’s mobile application and will charge the Company a service fee. See (1) below for accounting treatment. On March 8, 2018, the Company issued 3,895,728 shares of Series B2 convertible redeemable preferred shares (the “Series B2 Shares”) for US$23.6156 per share for cash of US$92,000,000. On April 27, 2018, the Company issued 1,751,539 shares of Series B3 convertible redeemable preferred shares (the “Series B3 Shares”) for US$25.9772 per share for cash of US$45,500,000. On September 4, 2018, the Company issued 1,450,520 shares of Series C1 convertible redeemable preferred shares (the “Series C1 Shares”) at US$34.47 per share for total consideration of US$50,000,000 to a third party investor (“Series C1 Investor A”). The appraised fair value of Series C1 shares is US$36.78 per share. Concurrently, the Company entered into a cooperation agreement with Series C1 Investor A, under which the Group will provide advertising service to Series C1 Investor A. See (2) below for accounting treatment of the discount. On September 11, 2018, the Company entered into a supplemental agreement with Series C1 Investor A, under which the number of shares subscribed by Series C1 Investor A has been reduced from 1,450,520 to 290,104. The change of numbers has been concluded by the Company as an extinguishment of mezzanine equity as a separate transaction. See (3) below for accounting treatment of the extinguishment. On September 4, 2018, the Company issued 145,052 shares of Series C1 convertible redeemable preferred shares at US$37.2280 per share for total consideration of US$5,400,000 to another third party investor (“Series C1 Investor B”). The Series A, Series A1, Series B1, Series B2, Series B3 and Series C1 shares are collectively referred to as the Preferred Shares. Upon the Series B1 Shares issuance Closing, several terms of the Series A Shares and Series A1 Shares have been updated to be consistent with the new issued Series B1 Shares’ rights summarized as follows: (1) The non-cumulative (2) The term of redemption requirement for Series A Shares and Series A1 Shares has been changed from six five (3) The percentage to calculate the liquidation amount was modified from 100% to 120% for Series A Shares and Series A1 Shares; (4) The definition of a Qualified IPO. The Company evaluated the modifications in accordance with its accounting policy and concluded that they are modifications, rather than extinguishment of Preferred Shares because the Company determined that the amendment did no The modifications that resulted in difference of between the fair value of the modified Series A and Series A1 Preferred Shares and the carrying value of Series A and Series A1 Preferred Shares on the modification date have been recorded as a deemed dividend of RMB 1,916,871 against retained earnings for the year ended December 31, 2018. (1) Accounting of Preferred Shares The Company classified the Preferred Shares in the mezzanine section of the consolidated balance sheets because they were convertible at the holders’ option any time after the date of issuance of such shares and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control, including the Company’s failure to complete a Qualified IPO within five years following the date of Series B1 Closing. A Qualified IPO is defined as a firm commitment underwritten public offering of the Ordinary Shares of the Company (or depositary receipts or depositary shares therefor) in the United States pursuant to an effective registration statement under the United States Securities Act of 1933, as amended or in another jurisdiction which results in the Ordinary Shares trading publicly on a recognized international securities exchange approved by the majority Preferred Shareholders, with (i) if such public offering takes place within years of the Series B1 Closing, minimum pre-money valuation of US$ and minimum gross proceeds to the Company of US$ , or (ii) if such public offering takes place within the year 2018, minimum post-money valuation of US$ and minimum gross proceeds to the Company of US$ . The Preferred Shares are recorded initially at fair value, net of issuance costs. The Qualified Public Offering deadline is five years following the Closing of Series B1. As such, the failure to complete a Qualified Public Offering by March 4, 2023 would be considered the earliest redemption date for all Preferred Shares. Based on the Company’s valuation results, the Series B1 Shares were issued on March 4, 2018 at US$19.37 per share with an 18% discount compared with the fair value at US$22.46 per share of the Series B1 Shares on the issuance date. On March 8, 2018, the Series B2 Shares were issued at US$23.62 per share at fair value. Although the Company entered into the cooperation agreement with the B1 investor which would expire in 2021, management concluded the terms were not advantageous in terms of prices or payment terms, and the services covered were not exclusive or unique for the Company, that service fees in the agreement were determined based on market value and that the Company could have obtained similar services with similar prices from other service suppliers. As a result, the cooperation agreement with the investors for the Series B1 Shares were accounted for separately from the issuance of the Series B1 Shares. The Company also determined that the conversion price was higher than the estimated fair value of the ordinary shares on the issuance date and as such that there was no The Company recognized accretion to the respective redemption value of the Preferred Shares over the period starting from issuance date to the earliest redemption date according to the redemption price calculation described above except for Series C1 issued to Series C1 investor A, the related accounting treatment was described in (2) Accounting of discount in Series C1 convertible redeemable preferred shares insurance price below. Preferred shares are denominated in USD and the reporting currency of the Company is RMB. Therefore, foreign currency translation adjustments arising from the fluctuation of the exchange rate between USD and RMB are recorded as a separate component of shareholders’ deficit on the consolidated financial statement. When the preferred shareholders converted their preferred shares to ordinary shares upon completion of the IPO in September 2018, the Company calculated the accretion value of the preferred share through the IPO date and the difference between the carrying value of the preferred shares on the IPO date and the paid-in paid-in (2) Accounting of the discount offered to Series C1 Investor A As mentioned above, the per share cash consideration of US$34.47 received from Series C1 Investor A was lower than the appraised fair value of US$36.78 per share. The discount between the fair value and cash consideration was offered since to Series C1 Investor A has entered into a cooperation agreement with the Company and is going to be a future customer of the Company. Therefore, the discount of US$3.35 million (RMB 22.8 million) has been accounted for as upfront incentive payment to customer. The upfront incentive payment is recorded as a reduction in revenue during the service period in which the Company will provide advertising service to Series C1 Investor A. As of December 31, 2018, the carrying value of incentive payment had not changed, as the Company did not begin providing advertising service to that investor until March of 2019. As of December 31, 2020, the carrying value of the incentive payment was reduced to nil as the Company has provided the full amount of advertising services to the investor during the year. (3) Accounting of the extinguishment of mezzanine equity related to Series C1 Investor A As mentioned above, the Company assessed and concluded that the reduction of shares committed from 1,450,520 to 290,104 is an extinguishment of mezzanine equity. The extinguishment of the preferred shares was recorded at fair value on repurchase day. A gain, which was the difference of US$2.68 million (RMB 18.3 million) between the excess of the fair value of the consideration over the carrying value of preferred shares upon the repurchase date, was recorded in accumulated deficit. (4) Agreement for issuance of Series C2 Shares On August 27, 2018, the Company entered into a share subscription agreement with a subsidiary of Shanghai Dongfang Newspaper Co., Ltd., commonly known as “The Paper”, a leading online news service provider in China. The Paper is a subsidiary of Shanghai United Media Group, which is a wholly state-owned enterprise. Pursuant to the share subscription agreement, the Company agreed to issue 1,480,123 Series C2 convertible redeemable preferred shares (or ordinary shares once the Company completes its initial public offering) (“Series C2 Shares”) to The Paper and enter into certain business and strategic cooperation between The Paper and the Group. In particular, the completion of the Series C2 share subscription was subject to regulatory approvals from relevant PRC government authorities. Since the share subscription agreement did not represent a firm commitment to issue shares until the regulatory approval is obtained, the Company did not recognize the issuance of ordinary shares until September 2019. In September 2019, the aforementioned share subscription was approved by the relevant PRC government authorities and as the Company was listed in September 2018, the Class A shares were issued. Refer to Note 3 – Significant equity transactions and acquisitions. The Company’s convertible redeemable preferred shares were all converted to ordinary shares upon the completion of the Company’s initial public offering in September 2018. |
Ordinary Share
Ordinary Share | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Ordinary Share | 16. Ordinary Share On July 17, 2017, Qutoutiao Inc. was incorporated as Limited Liability Company with authorized share capital of US$50,000 divided into 50,000 shares with par value US$1.00 each. On September 1, 2017, the authorized share capital of US$50,000, which represented 50,000 issued shares, was subdivided into 500,000,000 shares. In January 2018, the founders entered into Share Restriction Deeds with the Company such that a total of 15,937,500 ordinary shares of the Company held by the founders became restricted and will vest over periods from 24 months to 34 months. Prior to the end of the vesting periods, all the remaining restricted shares shall vest immediately and no longer constitute restricted shares upon a Deemed Liquidation Event or IPO of the Company. In the event that the founder voluntarily and unilaterally terminates his employment/service contract with any applicable Group entities or his employment or service relationship is terminated by any applicable Group entities for cause as stated in the Deed, the related founder shall sell to the Company, and the Company shall repurchase from the founder, all of the restricted shares (not vested shares) at a price of US$0.0001 per share. For accounting purposes, this transaction has been reflected retrospectively similar to a reverse stock split and presented in the balance sheet as of December 31, 2017 and statement of shareholders’ deficit as a reduction of the numbers of issued and outstanding ordinary shares. Upon the execution of the Share Restriction Deeds in January 2018, the total 15,937,500 ordinary shares were presented as an increase of the numbers of issued ordinary shares, with the grant to be recognized as share-based compensation over the vesting periods at their then fair value on January 3, 2018 (Note 17). Upon the completion of the Company’s IPO in September 2018, 15,937,500 ordinary shares were all vested. In February 2018, the Company established a trust to hold 10,000,000 of the Company’s issued shares. These ordinary shares were contributed by the founder and held in trust for the benefit of the employees who are under the 2017 Plan to be issued based on the discretion of the board of directors of the Company. The ordinary shares issued to the trust are accounted for as treasury shares of the Company and presented as such for all periods presented. As of December 31, 2020, 1,144,786 granted shares have been exercised and were issued from treasury shares. The trust does not hold any other assets or liabilities as at December 31, 2019 and 2020, nor earn any income nor incur any expenses for the years ended December 31, 2018, 2019 and 2020. From January to March 2018, shareholders of the Company sold certain ordinary shares to third party investors at about US$ 23.62 per share. Except for the sale of ordinary share to existing shareholders which resulted in share-based compensation of RMB 1.4 million, the sale of ordinary shares is a transaction amongst shareholders and did not impact the Group’s consolidated financial statements. In September 2018, the Company completed its initial public offering on the NASDAQ Global Market of 13,800,000 American Depositary Shares (“ADS”) (including 1,800,000 ADSs sold upon the full exercise of the underwriters’ over-allotment option) (every four ADS represents one Upon the completion of the IPO, all classes of preferred shares of the Company were converted and designated as Class A ordinary shares on a one-for-one one-for- one one-for- one |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 17. Share-based compensation (a) Share option plan In 2016, Jifen’s controlling shareholder authorized grants of incentive awards owned by him to the employees, non-employee one As part of the restructuring in 2017, in February 2018, the Board of Directors of the Company approved the 2017 Equity Incentive Plan, which assumed Jifen’s obligations and duties under the options granted by Jifen from 2016 to 2017. As a result, the options granted by Jifen were replaced with options of the Company. This replacement represents a modification of the awards under the accounting guidance, but no incremental compensation cost is required to be recognized because there was no change in fair value of the awards as measured immediately before and after the modification. In February 2018, the board of the directors of the Company approved a 2018 Equity incentive plan. Under this plan, the Company is authorized to issue 2,964,141 ordinary shares of the Company. In January 2019, the board of the directors of the Company approved a 2019 Equity incentive plan. The equity incentive plan replaced the 2017 equity incentive plan and 2018 equity incentive plan that the Company previously adopted in their entirety and assumed the awards previously granted under these two plans. Share-based compensation expense related to the option awards granted to the employees amounted to approximately RMB77.3 million and RMB272.0 million and RMB463.2 million for the years ended December 31, 2018, 2019 and 2020.Share-based awards related to the option awards granted to the employees of companies under common control of the founder were measured at fair value at the grant dates and amounts of RMB6.8 million, nil and nil was recognized as dividends distributed to the founder in 2018, in 2019 and in 2020, respectively. In 2019 and 2020 some employees of companies under common control of the founder resigned and joined the Group as employees. The related unvested options granted were not modified in connection with the change in status, but future service is still necessary to earn the award over the remaining periods. Accordingly, the share-based compensation expense related to the unvested options were measured as if the related unvested options were newly granted at the date of the change and recognized over the remaining vesting periods. On the date of transfer, total share-based compensation expense measured at fair value amounted to RMB7.5 million and nil for the years ended December 31, 2019 and 2020, respectively. These expenses are recognized over the remaining vesting periods. The following table summarizes the share option activity for the years ended December 31, 2018, 2019 and 2020: Number of options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Weighted Average Grant Fair RMB In Years RMB’000 RMB Outstanding at January 1, 2018 10,000,000 0.0007 8.7 525,086 3.89 Granted 2,893,020 0.0007 130.51 Exercised (500,000 ) 0.0007 Forfeited (217,437 ) 0.0007 Outstanding at December 31, 2018 12,175,583 0.0007 8.1 1,939,500 33.95 Granted 3,538,204 0.0007 270.11 Exercised (2,197,104 ) 0.0007 Forfeited (2,170,302 ) 0.0007 Outstanding at December 31, 2019 11,346,381 0.0007 7.7 1,079,661 96.29 Granted 2,607,249 0.0007 104.85 Exercised (3,144,786 ) 0.0007 Forfeited (1,378,694 ) 0.0007 Outstanding at December 31, 2020 9,430,150 0.0007 7.2 391,330 78.35 Vested and expected to vest at December 31, 2020 8,785,149 0.0007 7.1 364,564 70.68 Exercisable at December 31, 2020 6,615,731 0.0007 6.6 274,538 48.66 The aggregate intrinsic value is calculated as the difference between the exercise price of the options and the estimated fair value of the underlying shares of RMB159.29, RMB95.20 and RMB41.50(US$6.4) at December 31, 2018, 2019 and 2020. The total fair value of share options vested during the years ended December 31, 2018, 2019 and 2020 was RMB17.0 million , RMB326.5 million and RMB346.5 million respectively. The total intrinsic value of options exercised during the years ended December 31, 2018, 2019 and 2020 were nil As of December 31, 2020, there was RMB417.0 million of unrecognized share-based compensation expense related to share options granted, which were expected to be recognized over a weighted-average vesting period of 0.2 to 2.2 The binomial option pricing model is used to determine the fair value of the share options granted to employees and non-employees. Options Granted in the year ended December 31, 2018 Options Granted in the year ended December 31, 2019 Options Granted in the year ended December 31, 2020 Expected volatility 50.71%~51.25% 49.92%-50.65% 57.77%-58.65% Risk-free interest rate 2.83%~3.15% 1.80%-2.52% 0.82%-1.09% Exercise multiple 2.8 2.8 2.8 Expected dividend yield 0% 0% 0% Contractual term 10 10 10 Expected forfeiture rate (post-vesting) 0~20% 0-20% 0-20% Fair value of the common share on the date of option grant (RMB) 122.52~153.23 94.96-310.64 41.50-77.78 Notes: (i) The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of the Chinese sovereign bond/US government bond with a maturity life equal to the expected life to expiration. (ii) The Company has no history or expectation of paying dividends on its ordinary shares. (iii) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (b) Restricted shares to founders with service conditions On January 3, 2018, the founders entered into Share Restriction Deeds with the Company such that a total of 15,937,500 ordinary shares of the Company held by the founders became restricted and will vest over periods from 24 months to 34 months starting January 2018. Prior to the end of the vesting periods, all the remaining restricted shares shall vest immediately and no longer constitute restricted shares upon a Deemed Liquidation Event or IPO of the Company. In the event that the founder voluntarily and unilaterally terminates his employment/service contract with any applicable Group entities or his employment or service relationship is terminated by any applicable Group entities for cause as stated in the Deed, the related founder shall sell to the Company, and the Company shall repurchase from the founder, all of the restricted shares (not vested shares) at a price of US$0.0001 per share. This transaction has been reflected retrospectively similar to a reverse stock split, with a grant of the 15,937,500 restricted shares recognized in January 2018 at their fair value. The grant is being treated as share-based compensation over the vesting periods, and the estimated grant date fair value of the 15,937,500 ordinary shares approximated to at RMB 864.7 million (US$128.1 million). Share-based compensation expense of RMB 215.0 million (US$33.1 million) were recorded as share-based compensation expense through the completion of IPO. Upon the completion of IPO in September 2018 which was prior to the end of the vesting periods, the entire remaining unrecognized compensation expenses approximating RMB 649.7 million (US$95.0 million) was expensed immediately. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Employee Benefits | 18. Employee benefits The full-time employees of the Company’s subsidiaries and VIEs that are incorporated in the PRC are entitled to staff welfare benefits including medical insurance, basic pensions, unemployment insurance, work injury insurance, maternity insurance and housing funds. These companies are required to contribute to these benefits based on certain percentages of the employees’ salaries in accordance with the relevant regulations and charge the amount contributed to these benefits to the consolidated statements of comprehensive loss. The total amounts charged to the consolidated statements of comprehensive loss for such employee benefits amounted to RMB58.1 million ,RMB144.7 million and RMB97.1 million for the years ended December 31, 2018, 2019 and 2020, respectively. The PRC government is responsible for the welfare and medical benefits and ultimate pension liability to these employees. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 19. Income Taxes (a) Under the current tax laws of Cayman Islands, the Company is not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends. (b) One of the Company’s subsidiaries incorporated in Hong Kong is subject to Hong Kong profit tax at the rate of 8.25% for profit of up to HK$2.0 million and 16.5% for the remainder of taxable income Dividends income received from subsidiaries in China are not subject to Hong Kong profits tax. (c) On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. The EIT law became effective on January 1, 2008. 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 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 Jifen obtained in 2016 its HNTE certificate with a valid period of three years. Therefore, Jifen is eligible to enjoy a preferential tax rate of 15% from 2016 to 2018 to the extent it has taxable income under the EIT Law, as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. The HNTE certificate was renewed in 2019 and is valid for another three years (from 2019 to 2021). However Jifen has not yet enjoyed the above-mentioned preferential tax treatments due to its loss position and as such there is no impact of these tax holidays on earnings or earnings per share. Reconciliation of the differences between statutory audit rate and the effective tax rate A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Year ended December 31, 2018 2019 2020 % % % PRC Statutory income tax rates 25.0 % 25.0 % 25.0 % Change in valuation allowance (15.3 %) (23.2 %) (13.9 %) Permanent book — tax difference (9.9 %) (2.0 %) (9.2 %) Difference in EIT rates of certain subsidiaries 0.2 % 0.0 % (2.2 %) Total 0.0 % (0.2 %) (0.3 %) Loss from domestic and foreign components before income tax expense (benefit) The loss before income tax expenses (benefit) for domestic and foreign components’ are as follows: Year ended December 31, 2018 2019 2020 Domestic 998,299,456 2,404,676,422 558,656,558 Foreign 947,947,297 279,748,549 547,517,245 Total 1,946,246,753 2,684,424,971 1,106,173,803 Composition of income tax expense (benefit) The current and deferred portions of income tax expense (benefit) included in the consolidated statements of comprehensive loss are as follows: Year ended December 31, 2018 2019 2020 Current income tax expense — 7,246,119 1,395,870 Deferred income tax benefit (400,541 ) (2,403,243 ) (2,403,240 ) Income tax expense (benefit) (400,541 ) 4,842,876 (1,007,370 ) Deferred tax assets and liabilities The following table sets forth the significant components of the deferred tax assets and deferred tax liabilities: As of December 31, 2019 December 31, 2020 Deductible temporary difference to accruals and others 442,696,181 467,705,757 Tax losses carried forward 542,743,772 588,547,586 Less: Valuation allowance (985,439,953 ) (1,056,253,343 ) Total of deferred tax assets — — Taxable temporary difference related to acquired right to operate an online audio/video content platform 21,228,656 18,825,416 Total of deferred tax liabilities 21,228,656 18,825,416 Deferred tax liability of RMB18.8 million represents the difference between the accounting basis and tax basis of the acquired right to operate an online audio/video content platform (Note 10) and will be realized over 10 years which is in line with the acquired right’s amortization period. As of December 31, 2018, 2019 and 2020, the PRC entities of the Group had tax loss carryforwards of approximately RMB five Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance was provided for net operating loss carry forward because it was more likely than not that such deferred tax assets will not be realized due to lack of profitable history to support the Group’s estimate of its future taxable income. If events occur in the future that allow the Group to realize part or all of its deferred income tax, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur. As of December 31, 2019 and 2020, valuation allowances of RMB 985.4 million and RMB Movement of valuation allowance is as follows: Year ended December 31, 2018 2019 2020 Beginning balance 27,776,443 326,336,233 985,439,953 Current year additions 298,559,790 665,361,186 100,629,055 Current year reversals — (6,257,466 ) (29,815,665 ) Ending balance 326,336,233 985,439,953 1,056,253,343 |
Other Operating Income
Other Operating Income | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating Income | 20. Other Operating Income The Chinese tax bureau implemented a new tax rule which states that for the period between April 1, 2019 to December 31, 2021, companies from selected service industries (i.e. postal services, telecommunication services, modern services and lifestyle services) qualify for, an additional 10 percent super deduction of input VAT in addition to the existing, deductible input VAT. The Company obtained the relevant certificate in 2019 and recorded a benefit from the super deduction of RMB30.3 million and RMB48.7 million in other operating income for the years ended December 31, 2019 and 2020, respectively. In 2020, other operating income also included a VAT related refund amounting to RMB30.6 million which was recorded upon receipt. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests And Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests and Non-Controlling Interests | 21. Redeemable non-controlling non-controlling (a) Redeemable non-controlling In November 2018, Fun literature, one of the Company’s wholly owned subsidiaries, entered into preferred share purchase agreements with certain third party investors to issue 3,763,440 shares of series A redeemable convertible preferred shares (Fun Series A Preferred Shares) at the price of US$3.72 per share for an aggregate issuance price of US$14.0 million (RMB 97.1 million). The Fun Series A Preferred Shares on an as-if-converted In March 2019, Fun Literature entered into an additional preferred share agreement with a new third party investor to issue 1,097,212 series A redeemable preferred shares at the price of US$3.72 per share for an aggregate issuance price of US$4.0 million (RMB27.5 million). After the issuance, the Fun Series A Preferred Shares on an as-if-converted Pursuant to the preferred share agreement, the Fun Series A preferred shareholders have the right to convert all or any portion of their preferred shareholdings into ordinary shares of Fun literature at the initial conversion ratio of 1:1 at any time after the date of issuance of the preferred shares, and the conversion ratio is subject to adjustment for dilution, including but not limited to stock splits, stock dividends and recapitalization. In addition, the Fun Series A Preferred Shares will automatically convert into the Fun Literature’s ordinary shares upon the occurrence of a qualified initial public offering (as defined in the share purchase agreement), at the then effective and applicable conversion price. The other main rights, preferences and privileges of Fun Preferred Shares are as follows: Dividend rights If the board of Fun literature declares dividend, the Investors have the same rights as the ordinary shareholders. Liquidation preferences In the event of any liquidation, dissolution or winding up of Fun literature, either voluntarily or involuntarily, the Fun preferred shareholders rank pari passu with the ordinary shareholders. Redemption rights The Fun preferred shareholders have the right to require Fun literature to purchase all the shares from the Fun preferred shareholders within Voting rights The Fun preferred shareholders have the number of votes as equal to the number of shares they hold. In September 2019, Fun Literature issued 8,794,903 shares of Series B redeemable convertible preferred shares (“Fun Series B Preferred Shares”) each to CMC Capital and the Company for US$5.69 per share for cash consideration of US$50,000,000 from each of them. In addition to the same preferential rights specified for the Fun Series A preferred shareholders as described above, the Fun Series B preferred shareholders are entitled to (1) a conversion price adjustment down if certain operating metrics are not met around mid 2020 (2) put option to Fun Literature’s parent company (“the Company”) to purchase at the initial investment plus any declared or accrued but unpaid dividends in the event that a certain business milestone is not met by June 30, 2020, and (3) put option whereas both the Fun Series A and B preferred shareholders have the right to require Fun Literature’s parent company to purchase all the shares from them upon (i) an unsuccessful IPO within 5 years starting from the Fun Series B Preferred Shares issuance date or (ii) any material adverse effect caused by Fun Literature Limited or the Company (The preferred shares put option redemption price equals the initial investment plus 4% annual simple interest rate for both Fun Series A and B Preferred Shares). During 2020, as certain operating metrics were not met, the conversion price to Series B investors was adjusted down to US$4.307 and an additional 2,814,305 Series B preferred shares were issued to each investor. Furthermore, the Series B put option to Fun Literature’s parent mentioned in (2) above was waived. During the fourth quarter of 2020, Fun Literature also red CMC Capital’s Series B preferred shares to the Company for a total consideration of $20 million. In December 2020, Fun Literature issued 9,776,007 and 17,676,002 shares of Series C redeemable convertible preferred shares (“Fun Series C Preferred Shares”) to certain third-party investors, respectively, at a fair value of US$4.092 per share for a total consideration of US$111.8 million (RMB733.2 million), which is net of issuance costs amounting to US$0.5 million (RMB3.1 million). The consideration was comprised of US$55.0 million cash (RMB360.6 million), acquired intangible assets of US$20.8 million (RMB136.1 million) mainly including developed technology and user data, and contents of US$36.6 million (RMB240.0 million) from one of the investors (Note 8) which were all measured at fair value on the date of exchange. The acquisition was accounted for as an asset acquisition rather than a business combination because the purchase did not meet the definition of a business under ASU 2017-01. as In addition to the same preferential rights specified for the Fun Series A and B preferred shareholders as described above, the Fun Series C preferred shareholders are entitled to (1) a conversion price adjustment down if certain operating and financial metrics are not met during 2021 (2) call option whereas if certain operating or financial metrics are met, one of the investors has the right to purchase the outstanding shares held by the other preferred share investors and Fun Literature’s parent company at a variable exercise price. Upon the Fun Series C Preferred Shares issuance, the earliest redemption date for the Fun Series A and B Preferred Shares has been extended to December 31, 2024. Accounting for redeemable non-controlling Since the Fun Series A, B and C Preferred Shares are redeemable at a determinable price on a determinable date, at the option of the holder, or upon occurrence of an event that is not solely within the control of Fun Literature, the Fun Series A, B and C Preferred Shares are accounted for as redeemable non-controlling Subsequently, the redeemable non-controlling The Company assessed the impact of the extension of the earliest redemption date on the Series A and B Preferred Shares, and concluded that the amendment represented a modification rather than an extinguishment of the preferred shares. The difference of the fair value for the Fun Series A and B Preferred Shares before and after the modification is not material. For the other preferential rights described above including the conversion price adjustment and the Fun Series A, B and C preferred shareholders’ put options to the Company, with the exception of the Series C call option discussed below, the Company concluded that these embedded features do not need to be bifurcated from their host contract as they are either clearly and closely related to the equity host or they do not meet the definition of a derivative. In terms of the Series B Preferred Shares activity for the year, the downward adjustment of the conversion price did not result in a BCF that needed to be recorded as the ordinary share value on the contingency settlement date was less than the revised conversion price. The waiver of the Series B put option also did not have a material modification impact. For the repurchase of Series B preferred shares by Fun Literature’s parent company, the Company’s mezzanine equity balance was reduced by the carrying value of the preferred shares, and the difference between the consideration paid of $20 million (RMB 135.4 million) and the carrying value of RMB14.8 million was recorded in accumulated deficit. Specifically for the Series C call option, the Company concluded that the option should be separately accounted for and remeasured at fair value at the end of each reporting period as it represents a freestanding financial instrument. For the year ended December 31, 2020, the value of the call option was not material. The Company’s redeemable non-controlling Year ended December 31, 2018 2019 2020 Beginning balance — 96,936,855 495,844,565 Issuance of Fun Preferred Shares, net of issuance costs 97,019,860 380,259,607 733,238,486 Foreign exchange impact (1,061,206 ) (1,899,929 ) (37,374,084 ) Repurchase of Series B Preferred Shares — — (146,459,680 ) Accretion to redemption value of redeemable non-controlling 978,201 20,548,032 48,276,771 Ending balance 96,936,855 495,844,565 1,093,526,058 (b) Non-controlling Non-controlling non-controlling non-controlling non-controlling |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 22. Related Party transactions For the years ended December 31, 2018, 2019 and 2020, the transactions and balance amount due to/from related parties was as follows: Transaction amount with related parties Year ended December 31, 2018 2019 2020 Services provided by the Group Agent and platform service provided to a related party (1) 29,597,143 — — Advertising and marketing service provided to related parties (2) 17,447,475 473,215,790 250,874,596 Year ended December 31, 2018 2019 2020 Services received by the Group Advertisement costs charged from a related party (3) — 35,605,180 29,206,380 Gaming cost sharing charged from a related party (4) — 6,806,424 1,844,720 Advertising Service fee charged from related parties (5) 15,815,201 3,284,223 4,192,090 ICloud server and other service fee charged from a related party (6) 13,875,839 — — In July 2019, the Company invested RMB3.0 million in a company which the founder’s controlled entity has significant influence in. The investment is measured using the measurement alternative recorded at cost less any impairment since it does not have a readily determinable fair value. The carrying value of the investment remained at RMB3.0 million as of December 31, 2020. Balance amount with related parties As of December 31, 2019 December 31, 2020 Amount due from related parties (2) 278,155,878 383,594,360 Amount due to related parties (3)& (4) 3,436,586 9,426,883 Loan from a related party (7) — 13,049,800 (1) The Group provided agent and platform service between the advertising customers and a company in which the founder of the Company was a member of key management by facilitating the advertising customers to display their advertisements. The founder was no longer a member of management of that company as of September 30, 2018. (2) For the year ended December 31, 2018, the service fee charged to related parties consisted of: the advertising and marketing service of RMB 4.5 million provided to a company in which the founder of the Company was a member of key management (the founder was no longer a member of management of that company as of September 30, 2018), and the advertising service of RMB 12.9 million provided to Series B1 shareholder through September 2018 (After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018). For the year ended December 31, 2019 and 2020, the service fee of RMB473.2 million and RMB250.9 million charged to related parties represents advertising and marketing services provided to companies under the common control of the founder, to help promote these companies’ online applications, which were developed in late 2018. As of December 31, 2020, the amounts due from related parties is comprised of RMB368.5 million which pertains to accounts receivable from related parties revenues generated, whereas the remaining RMB15.1 million is a fee that the Company prepaid to a related party to place advertisements on behalf of their customers on the related party platform; the balance are settled and recorded as cost of revenues (see (5) below) as the advertisement services are provided. These balances were RMB262.6 million and RMB15.6 million, respectively, as of December 31, 2019. Out of the accounts receivable from related parties of RMB262.6 million as of December 31, 2019, a total of RMB160 million of the balances have been collected as of December 31, 2020; the remaining RMB102.6 million was collected during the first quarter of 2021. Although the receivables of RMB102. 6 For the revenue recognized in 2020, payments have not been received as the balances as of December 31, 2020 are still within the nine to twelve months payment terms and expect to be settled within the payment terms. (3) In 2019 the Group entered into CPM (cost per impression) arrangements with media platforms under the common control of the founder for the Group’s customer’s advertisement placement. The total service fee charged from related parties amounted to (4) In 2019 the Group entered into a game cooperation agreement with a game developing company which the founder’s controlled entity has significant influence over. The Company is the principal in the arrangement. The total service fee represents the amount paid to the game developing company in relation to the arrangement, and amounted to RMB6.8 million and RMB1.8 million for the years ended December 31, 2019 and 2020, respectively. (5) For the year ended December 31, 2018, the Group entered into a cooperation agreement with Series B1 shareholder to promote the Company’s mobile application, and the cooperation agreement requires the Company to prepay a total service fee of RMB 31.5 million which will be recognized as expense over 3 years. For the year ended December 31, 2018, total service fee recognized as expense amounted to RMB 15.8 million. After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018. For the years ended December 31, 2019 and 2020, the service fee charged from related parties represented the expense charged from a company under common control of the founder which provided the Group advertising and marketing services. (6) The service fee mainly represented cloud server and short message service fees charged from Series B1 shareholder through September 2018. After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018. (7) The Company borrowed an interest free loan of RMB13.0 million from an entity under common control of the founder in December 2020. The loan was repaid in the first quarter of 2021. |
Basic and Diluted Net Loss per
Basic and Diluted Net Loss per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss per Share | 23. Basic and diluted net loss per share (a) Basic and diluted net loss per share Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 on computation of earnings per share for the years ended December 31, 2018, 2019 and 2020 as follows: Year ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2020 Numerator: Net loss attributable to Qutoutiao Inc. (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) Accretion on Series A convertible redeemable preferred shares redemption value (15,718,213 ) — — Accretion on Series A1 convertible redeemable preferred shares redemption value (4,840,875 ) — — Accretion on Series B1 convertible redeemable preferred shares redemption value (37,001,459 ) — — Accretion on Series B2 convertible redeemable preferred shares redemption value (31,800,587 ) — — Accretion on Series B3 convertible redeemable preferred shares redemption value (12,312,158 ) — — Accretion on Series C1 convertible redeemable preferred shares redemption value (133,451 ) — — Deemed dividend to preferred shareholders (Note 15) (1,916,871 ) — — Accretion on redemption value of Series A convertible redeemable preferred shares of a subsidiary (Note 21) (978,201 ) (12,171,842 ) (13,509,457 ) Accretion on redemption value of Series B convertible redeemable preferred shares of a subsidiary (Note 21) — (8,376,190 ) (33,187,330 ) Accretion on redemption value of Series C convertible redeemable preferred shares of a subsidiary (Note 21) — — (1,579,984 ) Gains on repurchase of convertible redeemable preferred shares (Note 15) 18,332,152 — — Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) — — 14,841,680 Net loss attributable to ordinary shareholders-Basic and diluted (2,028,941,350 ) (2,709,228,737 ) (1,137,873,932 ) Denominator: Denominator for basic and diluted loss per share Weighted- average ordinary shares outstanding Basic and diluted 38,507,184 68,749,981 72,513,077 Basic and diluted loss per share (52.69 ) (39.41 ) (15.69 ) Denominator for basic and diluted loss per ADS Weighted-average ADS outstanding Basic and diluted 154,028,736 274,999,924 290,052,308 Basic and diluted loss per ADS (13.17 ) (9.85 ) (3.92 ) Note: (1) As disclosed in Note 17 for restricted shares, a total of 15,937,500 ordinary shares subject to certain vesting restrictions are excluded from the issued and outstanding shares as of December 31, 2017 and are likewise excluded from the weighted average outstanding ordinary shares for basic loss per share calculation until they were vested in September 2018 upon the completion of the IPO. (2) Options exercisable for a minimal exercise price are included in the denominator of basic loss per share calculation once there are no further vesting conditions or contingencies associated with them, as they are considered contingently issuable shares. Accordingly, the weighted average number of shares of 3,506,712 ( 14,026,848 ADSs), 5,329,287 ( 21,317,146 ADSs), and 6,141,679 (24,566,716 ADSs) related to these options, for which the exercise price is RMB 0.0007 per share, are included in the denominator for the computation of basic EPS for the years ended December 31, 2018, 2019 and 2020, respectively. For the years ended December 31, 2018, 2019 and 2020, assumed conversion of the Preferred Shares have not been reflected in the dilutive calculations pursuant to ASC 260, “Earnings Per Share,” due to the anti-dilutive effect as a result of the Group’s net loss. The effects of all other outstanding share options and restricted shares granted to the founders have also been excluded from the computation of diluted loss per share for the years ended December 31, 2018, 2019 and 2020 due to their anti-dilutive effect. The following potential ordinary shares were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect: Year ended December 31, 2018 2019 2020 Preferred shares — weighted average 10,134,756 — — Share options — weighted average 6,350,735 4,119,918 1,353,808 Restricted shares — weighted average 6,976,785 — — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 24. Commitments and contingencies (a) Content fee The Group has entered into non-cancelable RMB US$ (Note 2(e)) Years Ending December 31, 2021 103,289,167 15,829,757 2022 12,862,500 1,971,264 (b) Capital and other commitments As of December 31, 2020, future minimum payments under non-cancellable RMB US$ (Note 2(e)) Years Ending December 31, 2021 8,926,000 1,367,969 202 2 94,000 14,406 2023 188,000 28,816 (c) Litigation In the ordinary course of the business, the Group is subject to periodic legal or administrative proceedings. In relation to such matters, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position, results of operations or cash flows, within the next twelve months, or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. If any of those events were to occur, the Company’s business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company’s estimates, which could result in the need to adjust the liability and record additional expenses. Shanghai Jifen was named as the defendant in a lawsuit filed in the People’s Court of Jiading District in Shanghai in December 2019 on contractual dispute regarding certain advertising placement agreement between Shanghai Jifen and the plaintiff, Shanghai Wenji Culture Communications Co., Ltd. At the request of the plaintiff, the court issued a preliminary order to freeze the assets of Shanghai Jifen. Accordingly, RMB18.5 million (US$2.6 million) of cash was frozen and recorded as restricted cash as of December 31, 2019. The plaintiff withdrew the original lawsuit and filed it again in the Shanghai No.2 Intermediate People’s Court on January 20, 2020, and sought a total payment of RMB103.2 million (US$14.9 million). As a result of this withdrawal, the RMB18.5 million restricted cash has been unfrozen as of the date of this annual report. However, at the request of the plaintiff, Shanghai No. 2 Intermediate People’s Court adopted preservation measures to freeze certain amount of Shanghai Jifen’s deposit and the equity interest held by Shanghai Jifen in several of its subsidiaries. There were no significant developments in the case during 2020. As of December 31, 2020, the restricted cash associated with this account was RMB64.3 million (US$9.9 million). The Company has recorded the related marketing expenses under the agreement in the financial statements for fiscal years 2019 and 2020, and believe they have meritorious On August 20, 2020, the Company and certain of its current and former directors and officers were named as defendants in a putative shareholder class action lawsuit filed in the United States District Court for the Southern District of New York. This action is brought on behalf of a putative class of persons who purchased or acquired the Company’s securities pursuant or traceable to the Company’s September 2018 initial public offering or April 2019 secondary public offering, or otherwise acquired the Company’s securities between September 14, 2018 and December 16, 2020 (the “Putative Class Period”). The complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder based on alleged materially false or misleading statements or omissions in offering documents and/ or issued throughout the Putative Class Period. Lead Plaintiff was appointed, and a consolidated amended complaint was filed on January 15, 2021. The Company filed a motion to dismiss such amended complaint. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 25. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Group’s subsidiary and the VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s subsidiary and the VIEs in the PRC are required to annually appropriate 10% of their net after-tax Since the Group has a consolidated shareholders’ deficit, its net asset base for purposes of calculating the proportionate share of restricted net assets of consolidated subsidiaries should be zero. Therefore, the restrictions placed on the net assets of the Company’s PRC subsidiaries with positive equity would result in the 25 percent threshold being exceeded and a corresponding requirement to provide parent company financial information (See Additional Information: Condensed Financial Statements of Parent Company). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent events |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | ADDITIONAL INFORMATION: CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY Rules 12-04(a) 4-08(e)(3) S-X The following condensed financial statements of the Parent Company have been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Parent Company used the equity method to account for its investment in its subsidiaries and VIEs. Such investment is presented on the separate condensed balance sheets of the Parent Company as “Payables to subsidiaries and VIEs”. The Parent Company, its subsidiaries and VIEs were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of income from its subsidiaries and VIEs is reported as share of income from subsidiaries and VIEs in the condensed financial statements. The Parent Company is a Cayman Islands company and, therefore, is not subjected to income taxes for all years presented. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As of December 31, 2020, there were no material commitments or contingencies, significant provisions for long-term obligations or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Condensed Financial Information of the Parent Company BALANCE SHEETS As of December 31, December 31, 2020 RMB RMB US$(Note2(e)) ASSETS Current assets: Cash and cash equivalents 148,279,138 1,932,747 296,206 Short-term investments 498,100,680 — — Prepayments and other current assets 8,030,839 3,618,939 554,627 Total current assets 654,410,657 5,551,686 850,833 Other non-current 6,251,505 4,266,143 653,815 Total non-current 6,251,505 4,266,143 653,815 Total assets 660,662,162 9,817,829 1,504,648 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Accrued expenses and other current liabilities 2,640,434 2,510,911 384,814 Non-current Convertible loan 1,218,905,676 1,174,867,883 180,056,381 Other non-current 7,212,463 4,255,931 652,250 Payables to subsidiaries and VIEs 133,385,543 108,957,614 16,698,485 Total non-current 1,359,503,682 1,288,081,428 197,407,116 Total liabilities 1,362,144,116 1,290,592,339 197,791,930 Shareholders’ deficit: Class A ordinary shares (US$0.0001 par value, 50,000,000 shares authorized as of December 31, 2019 and 2020; 40,812,245 shares and 42,812,245 issued as of December 31, 2019 and 2020, 32,176,825shares and 35,321,611 shares outstanding as of December 31, 2019 and 2020) 20,260 22,426 3,437 Class B ordinary shares (US$0.0001 par value; 34,248,442 shares authorized as of December 31, 2019 and 2020; 32,937,193 shares issued and outstanding as of December 31, 2019 and 2020) 24,391 24,391 3,738 Additional paid-in 4,321,100,861 4,784,314,735 733,228,312 Treasury stock (US$0.0001 par value; 8,635,420 and 7,490,634 shares as of December 31, 2019 and December 31, 2020, respectively) (142,228,779 ) (142,228,779 ) (21,797,514 ) Accumulated other comprehensive loss (17,934,525 ) 84,319,590 12,922,543 Accumulated deficit (4,862,464,162 ) (6,007,226,873 ) (920,647,797 ) Total shareholders’ deficit (701,481,954 ) (1,280,774,510 ) (196,287,281 ) Total liabilities and shareholders’ deficit 660,662,162 9,817,829 1,504,649 STATEMENTS OF COMPREHENSIVE LOSS Year ended December 31, 2018 2019 2020 RMB RMB RMB US$(Note 2 (e)) Operating expenses: General and administrative (959,590,151 ) (287,026,788 ) (471,730,407 ) (72,295,848 ) Total operating expenses (959,590,151 ) (287,026,788 ) (471,730,407 ) (72,295,848 ) Loss from operations (959,590,151 ) (287,026,788 ) (471,730,407 ) (72,295,848 ) Investment income 3,098,150 — — — Interest income 23,805,861 44,271,057 2,819,127 432,050 Interest expense — (26,878,316 ) (36,773,704 ) (5,635,817 ) Foreign exchange related gains, net — — (6,920 ) (1,061 ) Other income/(expenses), net — — (41,744 ) (6,398 ) Loss from subsidiaries and VIEs (1,009,885,547 ) (2,419,046,658 ) (598,705,193 ) (91,755,584 ) Loss before provision for income taxes (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) (169,262,658 ) Provision for income taxes — — — — Net loss (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) (169,262,658 ) Accretion to convertible redeemable preferred shares redemption value (101,806,743 ) — — — Accretion to redemption value of convertible redeemable preferred shares of a subsidiary (978,201 ) (20,548,032 ) (48,276,771 ) (7,398,739 ) Gains on repurchase of convertible redeemable preferred Shares 18,332,152 — — — Gains on repurchase of convertible redeemable preferred shares of a subsidiary — — 14,841,680 2,274,587 Deemed dividend to preferred shareholders (1,916,871 ) — — — Net loss attributable to ordinary shareholders (2,028,941,350 ) (2,709,228,737 ) (1,137,873,932 ) (174,386,810 ) Net loss (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) (169,262,658 ) Foreign currency translation adjustment, net of nil tax (16,453,526 ) (1,505,650 ) 102,254,115 15,671,129 Comprehensive loss (1,959,025,213 ) (2,690,186,355 ) (1,002,184,726 ) (153,591,529 ) STATEMENTS OF CASH FLOWS 2018 2019 2020 RMB RMB RMB US$(Note 2 (e)) Cash flows provided by/(used in) operating activities 23,710,900 39,182,532 (354,228 ) (54,288 ) Cash flows used in investing activities (591,572,091 ) (3,327,606,050 ) (10,007,458 ) (15,593,371 ) Cash flows provided by/(used in) financing activities 2,206,005,176 1,397,381,828 (135,744,000 ) (1,533,710 ) Effect of exchange rate changes on cash 118,146,408 15,905,018 (240,705 ) (36,890 ) Net increase in cash and cash equivalents 1,756,290,393 (1,875,136,672 ) (146,346,391 ) (22,428,566 ) Cash and cash equivalents, beginning of year 267,125,417 2,023,415,810 148,279,138 22,724,772 Cash and cash equivalents, end of year 2,023,415,810 148,279,138 1,932,747 296,206 |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Preparation | (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Use of Estimates | (b) Use of estimates The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from such estimates. The Company believes that revenue recognition, liabilities related to loyalty programs, consolidation of VIEs, allowance for credit losses, determination of share-based compensation and impairment assessment of long-lived assets reflect more significant judgments and estimates used in the preparation of its consolidated financial statements. Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements 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 materially differ from these estimates. |
Consolidation | (c) Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and a VIEs’ subsidiaries for which the Company or its subsidiary is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, its 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. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIEs’ economic performance, and also the Group’s obligation to absorb losses of the VIEs that could potentially be significant to the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. The Company’s WFOEs and ultimately the Company hold all the variable interests of the VIEs and its subsidiaries, and have been determined to be the primary beneficiaries of the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of VIEs and its subsidiaries, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and its subsidiaries are eliminated in the balances presented below: As of December 31, 2019 December 31, 2020 Assets Current assets Cash and cash equivalents 7,807,740 12,083,788 Restricted cash 27,871,552 64,315,940 Short-term investments 31,430,000 98,350,000 Accounts receivable, net 526,689,373 737,789,173 Amount due from subsidiaries of the Company 548,857,973 1,173,052,601 Amount due from related parties 262,581,158 368,465,174 Prepayments and other current assets 172,737,341 330,887,406 Total current assets 1,577,975,137 2,784,944,082 Non-current Property and equipment, net 23,152,687 16,961,356 Accounts receivables, non-current — 54,638,516 Long-term investments 10,000,000 8,000,000 Right-of-use 61,931,400 48,109,166 Intangible assets 4,029,056 7,821,323 Other non-current 14,211,365 143,824,997 Total non-current 113,324,508 279,355,358 Total assets 1,691,299,645 3,064,299,440 Liabilities Current liabilities Short-term borrowing — 50,000,000 Accounts payable 313,189,188 399,857,773 Amount due to subsidiaries of the Company 2,734,962,567 5,426,800,647 Amount due to related parties 3,330,101 4,294,733 Registered users’ loyalty payable 127,253,323 66,180,291 Advance from customers and deferred revenue 246,251,382 140,776,350 Salary and welfare payable 126,884,752 115,307,402 Tax payable 93,025,726 98,797,489 Lease liabilities, current 31,275,663 20,030,138 Accrued liabilities related to users’ loyalty programs 89,184,947 100,087,815 Accrued liabilities and other current liabilities 761,687,143 607,455,490 Total current liabilities 4,527,044,792 7,029,588,128 Lease liabilities, non-current 25,279,037 23,533,711 Total liabilities 4,552,323,829 7,053,121,839 Year ended December 31, 2018 2019 2020 Net revenues 3,065,573,756 5,627,372,568 5,283,682,290 Net loss (1,882,747,022 ) (2,469,063,768 ) (1,096,208,019 ) Year ended December 31, 2018 2019 2020 Net cash provided used in operating activities (77,218,211 ) (2,782,745,243 ) (391,006,589 ) Net cash provided by/(used in) investing activities 90,767,728 (60,545,682 ) (80,506,432 ) Net cash provided by/ (used in) financing activities (5,402,941 ) 2,859,505,971 512,233,457 Net increase in cash and cash equivalents 8,146,576 16,215,046 40,720,436 In accordance with the aforementioned VIE agreements, the Company has power to direct activities of the VIEs, and can have assets transferred out of VIEs. Therefore the Company considers that there is no asset in VIEs that can be used only to settle obligations of the VIEs, except for registered capital, as of December 31, 2019 and 2020. As the VIEs and their subsidiaries were incorporated as limited liability Company under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the VIEs. There were no pledges or collateralization of the Affiliated Entities’ assets. As the Company is conducting its business mainly through the Affiliated Entities, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. There is no VIEs where the Company has variable interest but is not the primary beneficiary. The Group believes that the contractual arrangements among its shareholders and WFOEs comply with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of the VIEs were to reduce their interests in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control the VIEs also depends on the voting rights proxy and the effect of the share pledge under the Equity Interest Pledge Agreement and the WFOEs have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this voting right proxy is legally enforceable but may not be as effective as direct equity ownership. |
Functional Currency and Foreign Currency Translation | (d) Functional Currency and Foreign Currency Translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters. Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expense items are generally translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are accumulated as a separate component of shareholders’ deficit on the consolidated financial statement. The exchange rates used for translation on December 31, 2019 and December 31, 2020 were US$1.00= RMB6.9762 and RMB 6.5249, respectively, representing the index rates stipulated by the People’s Bank of China. |
Convenience Translation | (e) Convenience Translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive loss and consolidated statement of cash flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1 = RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the US Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. |
Fair Value of Financial Instruments | (f) Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy 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. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring 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. The Group’s financial instruments consist principally of cash and cash equivalents, short-term investments, accounts receivable, equity securities, short-term borrowings, accounts payable, advance from advertising customers, registered users’ loyalty payable, other liabilities, and convertible loan. As of December 31, 2019 and 2020, the carrying values of cash and cash equivalents, short-term investments in time deposits, current accounts receivable, non-marketable The estimated fair value of noncurrent accounts receivable approximates the carrying value as the discounting impact is not material. The estimated fair value of the long-term convertible loan approximated its carrying amount of RMB1,174.9 million as the stated interest rate of the loan is close to the market rate. The convertible loan would qualify as Level 3 in the fair value hierarchy if it was to be carried at fair value due to the presence of significant unobservable inputs. Assets and liabilities measured at fair value on a recurring basis On a recurring basis, the Group measures its short-term investments in wealth management products and publicly traded equity security at fair value. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2019 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — Wealth management products — 314,812,946 — 314,812,946 As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — Wealth management products — 354,847,029 — 354,847,029 Short-term investments — Equity investment in a publicly traded security 36,186,345 — — 36,186,345 The Group values its investments in wealth management products issued by certain banks using quoted subscription/redemption prices published by these banks, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. Assets and liabilities measured at fair value on a non-recurring The equity securities without readily determinable fair value are measured at fair value on a non-recurring |
Cash and Cash Equivalents | (g) Cash and Cash Equivalents Cash and cash equivalents include cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash. |
Restricted Cash | (h) Restricted cash As of December 31, 2020, restricted cash of RMB100.3 million represents the cash balance of RMB64.3 million that were frozen as a result of a pending litigation (Refer to Note 24 – Commitments and Contingencies) as well as RMB36.0 million which was frozen in cooperation with an ongoing investigation of one of the Group’s customers. |
Short-term Investments | (i) Short-term investments Short-term investments include time deposits with original maturities between three months and a year with banks in the PRC, investments in wealth management products issued by certain banks which are redeemable by the Company at any time, and a publicly traded equity security that’s listed on the Hong Kong Stock Exchange. The company classifies investments as current based on the nature of the investments and their availability for use in current operations. The wealth management products are unsecured with variable interest rates and primarily invested in debt securities issued by the PRC government, corporate debt securities and central bank bills. The Company measures the investments in wealth management products at fair value using the quoted subscription or redemption prices published by these banks. As of December 31, 2020, no allowance for credit losses in short-term investments was recorded. Refer to Note 6 – Investments for additional information. |
Accounts Receivable, Net | (j) Accounts receivable, net Accounts receivable represents those receivables derived in the ordinary course of business, net of an allowance for any potentially uncollectible amounts, and are classified as current or long-term in accordance with customer payment terms. The Company makes estimates of expected credit and collectibility trends for the allowance for credit losses based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions that may vary by geography, customer-type, or industry sub-vertical, Although the Company has historically not experienced significant credit losses, they may experience increasing credit loss risks from accounts receivable in future periods if its customers are adversely affected by economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 |
Property and Equipment, Net | (k) Property and equipment, net 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. The estimated useful lives are as follows: Leasehold improvements Over the shorter of lease term or estimated useful lives of the assets Office equipment 3 Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive loss. |
Long-term equity investments | (l) Long-term equity investments The Company’s equity investments are accounted for as follows: • Non-marketable subsequent Any changes in carrying vaue of these equity investments is recorded in the consolidated statements of comprehensive income/loss. Company per ASC 820 to measure these investments at fair value. • Equity method investments are securities that the Company does not control, but is able to exert significant influence over the investments. These investments are initially records at cost and subsequently recognizes proportionate share of each equity investee’s net income or loss and to reflect the amortization of basis differences in the consolidated statements of comprehensive loss and accordingly adjusts the carrying amount of the investments. An impairment charge is recorded if the carrying amount of the investments exceed their fair value and this condition is determined to be other-than-temporary. When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investe. The Company 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. Refer to Note 6 – Investments for additional information. |
Goodwill and Intangible Assets | (m) Goodwill and intangible assets Intangible assets Intangible assets represent the acquired right to operate an online audio/video content platform, which is amortized on a straight-line basis over its estimated useful life of 10 years, and computer software, which is amortized on a straight-line basis over its estimated useful life of 3-10 years. The estimated life of intangible assets subject to amortization is reassessed if circumstances occur that indicate the life has changed. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. No impairment of intangible assets was recognized for the years ended December 31, 2018, 2019 and 2020. Goodwill Goodwill represents the excess of the total cost of the acquisition over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and VIEs. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying value. In the qualitative assessment, the Company 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 reporting unit does not pass the qualitative assessment, the Company estimates its fair value and compares the fair value with the carrying value of its reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the consolidated statements of operations. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets, liabilities and goodwill to reporting units and the determination of the fair value of each reporting unit. The Company estimates the fair value of the reporting unit using a discounted cash flow model. This valuation approach considers various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on management’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, as well as industry and general economic data from third party sources. Discount rate assumptions reflect an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Management performs its annual goodwill impairment test as of December 31. Each quarter the Company reviews the events and circumstances to determine if there are indicators that goodwill may be impaired. As of December 31, 2019 and 2020, there is no event or any circumstance that the Company identified, which indicated that the fair value of the Company’s reporting unit was substantially lower than the respective carrying value. There was no impairment of goodwill for the years ended December 31, 2018, 2019 and 2020 and there was no change in goodwill during 2019 and 2020. |
Impairment of Long-Lived Assets Other Than Goodwill | (n) Impairment of long-lived assets other than Goodwill For other long-lived assets including non-current |
Leases | (o) Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use non-current ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: non-lease non-lease |
Short-term borrowings | (p) Short-term borrowings As of December 31, 2020, the Company had short-term borrowings from two banks of RMB70.0 million in aggregate, which were repayable in six months. The annualized interest rates of these borrowings are approximately 3% to 4%. |
Advances From Advertising Customers | (q) Advances from customers and deferred revenue Certain third party advertising customers pay in advance to purchase advertising and marketing services. Cash proceeds received from customers are initially recorded as advances from advertising customers and are recognized as revenues when revenue recognition criteria are met. Advances from customers and deferred revenue also consist of prepayments from users in the form of the purchase of the Group’s virtual currency that can be used for live streaming and online games that are not yet consumed or converted into virtual items, and that upon the consumption or conversion, are recognized as revenue according to the prescribed revenue recognition policies described below. |
Revenue Recognition | (r) Revenue recognition The following is a description of principal activities of the Group from which the Group generates its revenue under ASC 606. (i) Advertising and marketing The Group’s main revenue generating activity is the provision of online advertising and marketing services. The Group generates revenue from performing specific actions, i.e. an optimized cost per thousand impressions (“oCPM”) or optimized cost per click (“oCPC”) basis or related advertising and marketing services. Revenue is recognized on an oCPM or oCPC basis as impressions or clicks are delivered, or when related advertising and marketing services are performed. Whether revenues should be reported on a gross or net basis is determined by an assessment of whether the Group is acting as the principal or an agent in the transaction. In determining whether the Group acts as the principal or an agent, the Group follows the accounting guidance for principal-agent considerations. Such determination involves judgment and is based on evaluation of the terms of each arrangement. a. Advertising and marketing service provided to advertising customers Before February 2018, the Group engaged certain advertising customers through a third-party advertising agent (“advertising agent”). In the arrangement with this advertising agent, it served as the Group’s sales agent in selling the Group’s advertising solutions to other second-tier advertising agents. The end advertisers are the customers of the Group as they specifically selected Qutoutiao to display their advertisement and the performance obligation of the Group is to provide the underlying advertising display services. The advertising agent earns a commission of approximately % on average of the advertising revenues in the arrangement in return for providing bidding system for placement on Qutoutiao which the Company recognized as cost of revenues. The Group provides advertising and marketing services to advertising customers and recognizes advertising and marketing revenues on a gross basis as impressions or clicks are delivered. The Group receives refundable advance payments from advertising customers through this advertising agent and reconciles the advertising and marketing revenue with this advertising agent. If the advance payment deposited in the Group is not ultimately used for the advertisement on Qutoutiao, the Group refunds the advance payment back to advertising customers through this advertising agent. In February 2018, the Group acquired 100% equity interests of this advertising agent with a total consideration of RMB 15.0 million (Note 3). Since the acquisition, the Group has effectively been providing advertising and marketing services to these advertising customers directly and continues to recognize revenue on a gross basis as clicks or impressions are delivered. Besides this arrangement, the Group also provides advertising and marketing services to advertising customers directly. Starting from 2019, the placement of the advertising customers’ advertisements is not restricted to be only on Qutoutiao’s application. When advertisements cannot be placed on Qutoutiao due to capacity limit or bidding, the Group has the discretion to choose a media platform for advertisement placement. The Group determined it is the principal to the advertising customer when the Group (1) is the primary obligor ultimately responsible for delivering advertising and marketing services to the advertising customers, (2) has the discretion in pricing and (3) takes certain risks of loss due to the different settlement methods between the media platform and advertising customers. Hence, the Group recognizes the revenue on a gross basis. In May 2019, the Group also started a new advertising and marketing service by providing integrated marketing solution to its customers based on their customized needs. The services include but are not limited to designing and executing a systematic marketing plan online and offline, coming up with best solutions for online promotion of the customers’ mobile application by selecting appropriate advertisement platforms, designing the advertisement clips, monitoring advertisement effects and organizing offline marketing campaigns. The Group pays the vendors or suppliers when costs are incurred and advertisements are displayed while the Group charges the service fees to the customers based on specified achievements, i.e. a Gross Merchandise Volume (“GMV”) which revenue is recognized based on number of first effective purchase, or optimized cost per action (“oCPA”) basis which revenue is recognized based on number of registered new users. The Group is the principal ultimately responsible for delivering the integrated marketing services to the customers in the arrangement, it has the discretion in pricing and takes certain risks of loss as the results cannot be guaranteed while costs are incurred. The Group recognizes the integrted marketing services revenue at gross based on GMV or oCPA basis and recognizes incurred expenses to vendors or suppliers as cost of revenue. b. Advertising and marketing services provided to advertising platforms The Group provides advertising and marketing services to other third-party advertising platforms. In the arrangement with these advertising platforms, these advertising platforms are the customers of the Group and the performance obligation of the Group is to provide traffic service to these advertising platforms. Therefore, the Group recognizes revenue based on the net amount as impressions or clicks are delivered. (ii) Other services a. Agent and platform service After the acquisition of the advertising agent in February 2018 (Note 3), the Group also provides agent and platform service by facilitating the advertising customers to select third-party advertising platforms to display their advertisements. The Group recognizes revenue from the advertising customers based on the net amount equal to certain agreed percentage of the gross revenue earned by the third-party advertising platforms when impressions b. Live streaming In January 2019, the Group started operating its own live streaming platform. It generates revenue from sales of virtual items in the platform. Users can access the platforms and view the live streaming content showed by the performers for free. The Group shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with performers and talent agencies in accordance with their revenue sharing arrangements. The Group evaluates and determines that it is the principal and views users to be its customers. The Group reports live streaming revenues on a gross basis. Accordingly, the amounts paid by users to purchase virtual items are recorded as revenues and revenue sharing fee paid to performers and talent agencies are recorded as cost of revenues. Where the Group is the principal, it controls the virtual items before they are transferred to users. Its control is evidenced by the Group’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Group being primarily responsible to users and having a level of discretion in establishing pricing. The Group designs, creates and offers various virtual items for sales to users with pre-determined The Group may also enter into contracts that can include various combinations of virtual items and privileges such as priority speaking rights or special symbols, which are generally capable of being distinct and accounted for as separate performance obligations, such as the VIP member program. Judgments are required as follow: 1) determining whether those virtual items and privilege are considered distinct performance obligations that should be accounted for separately versus together, 2) determining the standalone selling price for each distinct performance obligation, and 3) allocating of the arrangement consideration to the separate accounting of each distinct performance obligation based on their relative standalone selling prices. In instances where standalone selling price is not directly observable as the Group does not sell the virtual item or privilege separately, the Group determines the standalone selling price based on pricing strategies, market factors and strategic objectives. The Group recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For consumable virtual items, revenues is recognized immediately when the virtual item is used. For durable virtual items, revenue is recognized over the estimated user relationship periods. For the year ended December 31, 2020, the VIP membership program was not material. c. Online games The Group generates revenues from offering virtual items in online games developed by third parties to game players. Users play games on the Group’s various mobile applications free of charge and are charged for purchases of consumable virtual items, which can be utilized in the online games to enhance their game-playing experience. Pursuant to contracts signed between the Group and the respective game developers, although game developers own the games’ copyrights and other intellectual property, in general the Group controls the games and takes the main responsibilities to operate the games, maintains a functioning gaming environment for the players, sets the pricing of virtual items, collects the in-game pre-agreed Online games revenue is recognized immediately when the consumable virtual item is purchased and used. The Group does not have further obligations to the user after the virtual items are consumed immediately. In addition, the Group sells the advertisement spots placed in the online games to the advertisers and gets paid based on views/clicks. The advertisements price is negotiated and determined by the Group with a shared fee to be paid to the game developer. Similar to the advertising and marketing service provided to advertising customers described above in 2(r)(i) a, the Group is the principal in the arrangement and revenue is recognized on a gross basis as clicks or impressions are delivered with fees paid to game developers as cost of revenue. d. Online marketplace service The Group operates an online marketplace which users can access merchandise offered by third-party merchandise suppliers. The suppliers are the customers of the Group as these suppliers are the primary obligor to provide goods and delivery service to the users and the performance obligation of the Group is to provide matching service for the suppliers. The Group acts as an agent in this transaction and recognize revenue when the matching service is completed. The Group settles the payment with suppliers on a monthly basis. C. Disaggregation of revenue In the following table, revenue is disaggregated by major service line and gross vs net recognition. year ended December 31, 2018 2019 2020 RMB RMB RMB US$ Major service line Advertising service provided to advertising customers, recorded gross (1) 2,399,716,518 4,339,602,177 3,857,233,008 591,146,821 Advertising service provided to advertising platforms, recorded net 414,541,506 1,075,718,365 1,189,601,725 182,314,441 Other service Agent and platform services 203,389,356 33,154,982 7,904,057 1,211,350 Live streaming and online games — 104,445,462 193,141,447 29,600,222 Other revenues 4,498,405 17,159,618 37,314,786 5,718,741 Total Other services 207,887,761 154,760,062 238,360,290 36,530,313 Net Revenues 3,022,145,785 5,570,080,604 5,285,195,023 809,991,575 (1) For the years ended December 31, 2018, 2019 and 2020, revenue in advertising services provided to advertising customers which recorded gross include integrated marketing solution services which amounted to nil, RMB381.8 million and RMB 248.2 million. |
Cost of Revenues | (s) Cost of revenues The Group’s cost of revenues consists primarily of (i) bandwidth and server costs, (ii) costs incurred to vendors and suppliers for advertising and marketing services, (iii) content procurement costs paid to third-party professional media companies and freelancers, (iv) direct cost related to in-house COVID-19 |
Research and Development Expense | (t) Research and development expenses Research and development expenses consist primarily of (i) salary and welfare for research and development personnel, (ii) stock-based compensation for research and development personnel (iii) office rental expenses (iv) IT service fees and (v) depreciation of office premise and servers utilized by 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 accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. For the years ended December 31, 2018, 2019 and 2020, the Company has not capitalized any costs related to internal use software because the inception of the Group software development costs qualified for capitalization have been insignificant. |
Sales And Marketing Expenses | (u) Sales and marketing expenses Sales and marketing expenses consist primarily of (i) rewards to registered users related to loyalty programs, (ii) advertising and marketing expenses, (iii) charges for short mobile message service to registered users (iv) salary and welfare for sales and marketing personnel and (iv) stock-based compensation expenses for sales and marketing personnel. The advertising and marketing expenses amounted to RMB 1,061.0 million, RMB 2,863.8 million and RMB1,728.1 million during the years ended December 31, 2018, 2019 and 2020, respectively. |
General and Administrative Expenses | (v) General and administrative expenses General and administrative expenses also consist of (i) salary and welfare for general and administrative personnel, (ii) office expense, (iii) professional service fees, (iv) stock-based compensation expense and (v) bad debt expense. For the years ended December 31, 2018, 2019 and 2020, general and administrative expenses include stock-based compensation expenses of approximately RMB906.8 million, RMB82.0 million and RMB159.3 million. For the year ended December 31, 2018, general and administrative expenses included stock-based compensation expenses approximating RMB 864.7 million expensed upon the completion of IPO related to the vesting of 15,937,500 ordinary shares owned by the founders (Note 17b). |
User Loyalty Programs | (w) User loyalty programs The Group has loyalty programs for its registered users primarily in its mobile Qutoutiao and Midu to enhance user engagement, loyalty and to incentivize word-of-mouth On Qutoutiao, the Group’s users can redeem earned rewards, which is in a form of cash credits reflecting the same amount of cash value, upon redemption. The Group offers its users the flexibility to choose a number of rewards payment options, including i) online cash out, when the cash credits balance exceeds a certain cash out threshold or at a lower cash out threshold if the users log on Qutoutiao for a certain number of consecutive days, ii) purchasing virtual items in live streaming and online games, iii) purchasing merchandise through Qutoutiao’s online market place. On Midu Qutoutiao The Group also has a number of other loyalty programs for various applications. As of December 31, 2020, the loyalty program volume associated with these applications are immaterial. For Qutoutiao The Group’s experience indicates that a certain portion of rewards is never redeemed in cash by its users, which the Group refers to as a “breakage”. The liability accrued for the reward is reduced by the estimated breakage that is expected to occur. The Group estimates breakage based upon its analysis of relevant reward history and redemption pattern as well as considering the expiration period of the rewards under the users agreement. In the assessment of breakage, each individual user’s account is categorized into certain pools of different range of outstanding rewards, and then further grouped into certain sub-groups sub-groups sub-group non-cash Once the amount of accumulated unredeemed rewards for individual user exceeds the cash out threshold or the continuous log-on The actual cost to settle the estimated liability may differ from the estimated liability recorded. As of December 31, 2019 and 2020, users’ reward recorded in “Registered users’ loyalty payable” were RMB 134.1 million and RMB72.6 million, respectively, and estimated users’ rewards recorded in “Accrued liabilities related to users’ loyalty programs” were RMB89.2 million and RMB100.1 million, respectively. |
Employee Social Security And Welfare Benefits | (x) 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 contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. 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. |
Income Taxes | (y) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statements 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 consolidated balance sheets and under other expenses in its statements of operations and comprehensive loss. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended December 31, 2018, 2019 and 2020. As of December 31, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. |
Treasury Stock | (z) Treasury Stock The Group accounts for treasury stock using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stock account in the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in paid-in paid-in Effective May 28, 2019, the Board of Directors approved a share repurchase program to repurchase in the open market up to US$50 million of outstanding ADSs of the Company, every four of which represents one class A ordinary share, from time to time over the next 12 months. Up to December 31, 2020, 4,665,700 outstanding ADSs (1,166,425 ordinary shares) were repurchased and held in treasury stock with a total consideration of RMB142.2 million. As of December 31, 2020, no repurchased shares have been retired or reissued. |
Share-Based Compensation | (aa) Share-based compensation Share-based compensation costs are measured at the grant date. The share-based compensation expenses have been categorized as either cost of revenue, general and administrative expenses, selling and marketing expenses or research and development expenses, depending on the job functions of the grantees. Option granted to employees For the options granted to employees, the compensation expense is recognized using the straight-line method over the requisite service period. Forfeitures are estimated at the time of grant, with such estimate updated periodically and with actual forfeitures recognized currently to the extent they differ from the estimate. In determining the fair value of the Company’s share options, the binomial option pricing model has been applied. Option granted to non-employee For share-based awards granted to non-employees, 505-50 505-50”), Non-Employees. 505-50, non-employees non-employee non-employee’s 2018-07, Restricted shares In January 2018, the founders entered into Share Restriction Deeds with the Company such that a total of 15,937,500 ordinary shares of the Company held by the founders became restricted and will be vested in periods from 24 months to 34 months. Prior to the end of the vesting periods, all the remaining restricted shares shall vest immediately and no longer constitute restricted shares upon a Deemed Liquidation Event or IPO of the Company. In the event that the founder voluntarily and unilaterally terminates his employment/service contract with any applicable Group entities or his employment or service relationship is terminated by any applicable Group entities for cause as stated in the Deed, the related founder shall sell to the Company, and the Company shall repurchase from the founder, all of the restricted shares (not vested shares) at a price of US$0.0001 per share. For accounting purposes, this transaction has been reflected retrospectively similar to a reverse stock split, with a grant of the 15,937,500 restricted shares to be recognized in January 2018 at their then fair value and recognized as compensation expense over the vesting periods. Upon completion of the Company’s IPO in September 2018, the restrictions were released. See Note 17 (b). |
Government grants | (ab) Government grants Government grants are recognized as other income/ (expenses) when received. For the years ended December 31, 2018, 2019 and 2020, the Group received financial subsidies of nil, RMB9.5 million and RMB5.8 million from the local PRC government authorities, respectively. These subsidies were non-recurring, |
Statutory Reserves | (ac) Statutory reserves The Group’s subsidiaries, consolidated VIEs and its subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group was not done so. Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances. |
Related Parties | (ad) 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 | (ae) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2018, 2019 and 2020, respectively. The Group does not have any present plan to pay any dividends on ordinary shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Loss Per Share | (af) Loss per share Basic loss per share is computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two class method. Ordinary shares issuable for little or no cash consideration are also included as outstanding shares once all of their conditions have been met as they are considered contingently issuable shares. Using the two class method, net loss is allocated between ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights. Diluted loss per share is calculated by dividing net 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 equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted |
Comprehensive Loss | (ag) Comprehensive loss Comprehensive loss is defined as the change in shareholders’ deficit of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss is reported in the consolidated statements of comprehensive loss. Accumulated other comprehensive losses of the Group include the foreign currency translation adjustments. |
Segment Reporting | (ah) Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Group has only one operating segment and one reportable segment. |
Recent Adopted Accounting Pronouncements | (ai) Recent adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, available-for-sale In June 2018, the FASB issued ASU 2018-07, 2018-07 In August 2018, the FASB issued ASU 2018-13, 2018-13 2018-13 2018-13 |
Recent Issued Accounting Pronouncements | (aj) Recent issued accounting pronouncements In December 2019, the FASB issued ASU 2019-12—Income This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. 2019-12 2019-12 In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), Clarifying the Interactions between Topic 321, Topic 323, and Topic 815, which clarifies the interaction of the accounting for equity investments under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company in the fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted. The Company will assess the impact of the adoption of the new standard before the effective date. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Principal Subsidiaries and Consolidated Affiliated Entities | As of December 31, 2020, the Company’s principal subsidiaries and consolidated Affiliated Entities are as follows: Name of subsidiaries and VIEs Date of acquisition Place of incorporation Percentage of direct or indirect economic ownership Wholly owned subsidiaries of the Company: InfoUniversal Limited(“InfoUniversal”) August 2017 Hong Kong 100 % Qtech USA Inc. (“Qtech”) April 2018 USA 100 % Fun Literature Limited (Cayman) (“Fun Literature”) October 2018 Cayman 78 % Fun Literature (HK) Limited (“Fun Literature HK”) October 2018 Hong Kong 100 % Shanghai Quyun Internet Technology Co., Ltd. (“Quyun WFOE”) October 2017 PRC 100 % Shanghai Dianguan Network Technology Co., Ltd. (“Dianguan”) February 2018 PRC 100 % QTT Asia Ltd.(“QTT Asia”) April 2018 British Islands (“BVI”) 100 % Shanghai Zhicao Information Technology Co., Ltd. (“Zhicao WFOE”) December 2018 PRC 100 % Shanghai Chenxing Software Technology Co., Ltd. (“Chenxing”) Januray PRC 100 % Shanghai Yanmo Software Technology Co., Ltd. (“Yanmo”) October 2019 PRC 100 % Shanghai Shuqin Information Technology Co., Ltd. (“Shuqin”) November 2020 PRC 100 % Shanghai Wennuo Information Technology Co., Ltd. (“Wennuo”) July 2020 PRC 100 % Variable Interest Entity (“VIEs”) Shanghai Jifen Culture Communications Co., Ltd. (“Jifen or Jifen VIE”) January 2012 PRC 100 % Beijing Churun Internet Technology Co., Ltd. (“Churun”) November 2018 PRC 100 % Shanghai Big Rhinoceros Horn Information Technology, Co., Ltd (“Big Rhinoceros Horn”) November 2018 PRC 100 % Shanghai DragonS Information Technology, Co., Ltd (“ DragonS Information”) January 2019 PRC 100 % Anhui Zhangduan Internet Technology Co., Ltd. (“Zhangduan”) March 2017 PRC 100 % Hubei Rapid Information Technology Co., Ltd. (“Rapid Information”) March 2019 PRC 100 % Shanghai Tuohuan Information Technology Co., Ltd. (“Tuohuan”) September 2019 PRC 100 % Shanghai Ququanquan Information Technology Co., Ltd. (“Ququanquan”) October 2019 PRC 100 % Shanghai Xiaoqiao Information Technology Co., Ltd. (“Xiaoqiao”) September 2019 PRC 100 % Shanghai Xunkai Information Technology Co., Ltd. (“Xunkai”) October 2019 PRC 100 % Huaian Beixia Information Technology Co., Ltd. (“Beixia”) November 2020 PRC 100 % Shanghai Douzao Internet Technology Co., Ltd. (“Douzao”) July 2020 PRC 100 % Subsidiaries of Variable Interest Entity (“VIE subsidiaries”) Shanghai Xike Information Technology Service Co., Ltd. (“Xike”) July 2016 PRC 100 % Shanghai Tuile Information Technology Service Co., Ltd. (“Tuile”) July 2016 PRC 100 % Beijing Qukandian Internet Technology Co., Ltd. (“Qukandian”) April 2017 PRC 100 % Shanghai Heitu Internet Technology Co., Ltd. (“Heitu”) January 2019 PRC 100 % Shanghai Zheyun Internet Technology Co., Ltd. (“Zheyun”) January 2019 PRC 100 % Beijing Supreme Pole International Sports Development Co., Ltd. (“Supreme Pole International Sports”) January 2019 PRC 100 % Tianjin Quwen Internet Technology Co., Ltd. (“Quwen”) August 2018 PRC 100 % Shanghai Manchuan Information Technology Co., Ltd. (“Manchuan”) March 2020 PRC 100 % Shanghai Yunxi Information Technology Co., Ltd. (“Yunxi”) April 2020 PRC 100 % Hubei Xijie Information Technology Co., Ltd. Shanghai Branch (“Xijie”) January 2020 PRC 100 % Hubei Xijie Information Technology Co., Ltd. (“Xijie”) January 2019 PRC 100 % Hubei Rapid January 2020 PRC 100 % Shanghai Luoshi Software Technology Co., Ltd. (“Luoshi”) Januray PRC 100 % Shanghai Xiaying Software Technology Co., Ltd. (“Xiaying”) November 2019 PRC 100 % Shanghai Songmang Internet Technology Co., Ltd. (“Songmang”) December 2019 PRC 100 % Shanghai Miaoqu Internet Technology Co., Ltd. (“Miaoqu”) December 2019 PRC 100 % Shanghai Xixia Information Technology Co., Ltd. (“Xixia”) October 2019 PRC 100 % Shanghai Mili Information Technology Co., Ltd. (“Mili”) March 2020 PRC 100 % Shanghai Kunjie Information Technology Co., Ltd. (“Kunjie”) March 2020 PRC 100 % Hubei Qingluo Information Technology Co., Ltd. Shanghai Branch (“Qingluo”) March 2020 PRC 100 % Hubei Qingluo Information Technology Co., Ltd. (“Qingluo”) March 2019 PRC 100 % |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Assets, Liabilities, Result of Operations and Cash Flows of VIEs and its Subsidiaries | The following table sets forth the assets, liabilities, results of operations and cash flows of VIEs and its subsidiaries, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and its subsidiaries are eliminated in the balances presented below: As of December 31, 2019 December 31, 2020 Assets Current assets Cash and cash equivalents 7,807,740 12,083,788 Restricted cash 27,871,552 64,315,940 Short-term investments 31,430,000 98,350,000 Accounts receivable, net 526,689,373 737,789,173 Amount due from subsidiaries of the Company 548,857,973 1,173,052,601 Amount due from related parties 262,581,158 368,465,174 Prepayments and other current assets 172,737,341 330,887,406 Total current assets 1,577,975,137 2,784,944,082 Non-current Property and equipment, net 23,152,687 16,961,356 Accounts receivables, non-current — 54,638,516 Long-term investments 10,000,000 8,000,000 Right-of-use 61,931,400 48,109,166 Intangible assets 4,029,056 7,821,323 Other non-current 14,211,365 143,824,997 Total non-current 113,324,508 279,355,358 Total assets 1,691,299,645 3,064,299,440 Liabilities Current liabilities Short-term borrowing — 50,000,000 Accounts payable 313,189,188 399,857,773 Amount due to subsidiaries of the Company 2,734,962,567 5,426,800,647 Amount due to related parties 3,330,101 4,294,733 Registered users’ loyalty payable 127,253,323 66,180,291 Advance from customers and deferred revenue 246,251,382 140,776,350 Salary and welfare payable 126,884,752 115,307,402 Tax payable 93,025,726 98,797,489 Lease liabilities, current 31,275,663 20,030,138 Accrued liabilities related to users’ loyalty programs 89,184,947 100,087,815 Accrued liabilities and other current liabilities 761,687,143 607,455,490 Total current liabilities 4,527,044,792 7,029,588,128 Lease liabilities, non-current 25,279,037 23,533,711 Total liabilities 4,552,323,829 7,053,121,839 Year ended December 31, 2018 2019 2020 Net revenues 3,065,573,756 5,627,372,568 5,283,682,290 Net loss (1,882,747,022 ) (2,469,063,768 ) (1,096,208,019 ) Year ended December 31, 2018 2019 2020 Net cash provided used in operating activities (77,218,211 ) (2,782,745,243 ) (391,006,589 ) Net cash provided by/(used in) investing activities 90,767,728 (60,545,682 ) (80,506,432 ) Net cash provided by/ (used in) financing activities (5,402,941 ) 2,859,505,971 512,233,457 Net increase in cash and cash equivalents 8,146,576 16,215,046 40,720,436 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: As of December 31, 2019 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — Wealth management products — 314,812,946 — 314,812,946 As of December 31, 2020 Level 1 Level 2 Level 3 Balance at fair value Assets Short-term investments — Wealth management products — 354,847,029 — 354,847,029 Short-term investments — Equity investment in a publicly traded security 36,186,345 — — 36,186,345 |
Schedule of Estimated Useful Lives | The estimated useful lives are as follows: Leasehold improvements Over the shorter of lease term or estimated useful lives of the assets Office equipment 3 |
Schedule of Disaggregation of Revenue | In the following table, revenue is disaggregated by major service line and gross vs net recognition. year ended December 31, 2018 2019 2020 RMB RMB RMB US$ Major service line Advertising service provided to advertising customers, recorded gross (1) 2,399,716,518 4,339,602,177 3,857,233,008 591,146,821 Advertising service provided to advertising platforms, recorded net 414,541,506 1,075,718,365 1,189,601,725 182,314,441 Other service Agent and platform services 203,389,356 33,154,982 7,904,057 1,211,350 Live streaming and online games — 104,445,462 193,141,447 29,600,222 Other revenues 4,498,405 17,159,618 37,314,786 5,718,741 Total Other services 207,887,761 154,760,062 238,360,290 36,530,313 Net Revenues 3,022,145,785 5,570,080,604 5,285,195,023 809,991,575 (1) For the years ended December 31, 2018, 2019 and 2020, revenue in advertising services provided to advertising customers which recorded gross include integrated marketing solution services which amounted to nil, RMB381.8 million and RMB 248.2 million. |
Significant Equity Transactio_2
Significant Equity Transactions and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Equity Transactions And Acquisitions [Abstract] | |
Schedule of Fair Value of Consideration Transferred | Fair value of consideration transferred: RMB Cash 15,000,000 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 4,270,175 Short-term investments 9,940,000 Prepayments and other current assets 30,936,027 Property and equipment, net 17,978 Accounts payable (364,242 ) Salary and welfare payable (778,438 ) Tax payable (9,933,408 ) Advance from advertising customers (24,664,513 ) Accrued liabilities and other current liabilities (1,691,909 ) Total identifiable net assets acquired 7,731,670 Goodwill 7,268,330 Total purchase consideration 15,000,000 |
Risks and Concentration (Tables
Risks and Concentration (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Summary of Customers with Greater than 10% of Accounts Receivables And Amounts Due From Related Parties | The following table summarized customers with greater than 10% of the accounts receivables, including accounts receivable from related parties: As of December 31, 2019 December 31, 2020 Customer A — advertising platform 16 % 13 % Customer B — advertising platform 11 % * Customer C — advertising and marketing customer (related party – Note 22) 28 % 23 % * Less than 10% |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2019 and 2020: RMB RMB equivalent (US$) RMB equivalent (HKD/SGD/IDR) Total in RMB Overseas China Overseas China Overseas China Non VIE VIE Non VIE VIE Non VIE VIE December 31, 2019 — 59,438,015 7,806,771 223,534,731 56,358,066 969 678,541 — — 347,817,093 December 31, 2020 — 84,260,552 12,083,788 361,937,179 35,966,024 — 227,348 — — 494,474,891 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Summary of Short-Term Investments | As of December 31, 2019 and 2020, the Company’s short-term investments are comprised of the following: As of December 31, 2019 December 31, 2020 Time deposits (maturity dates between 3 – 12 months) 962,017,980 — Wealth management products 314,812,946 354,847,029 Publicly traded equity security — 36,186,345 Total short-term investments 1,276,830,926 391,033,374 |
Summary of Long-Term Investment | As of December 31, 2019 and 2020, the Company’s long-term investment in equity securities are comprised of the following: As of December 31, 2019 December 31, 2020 Non-marketable 10,000,000 55,299,509 Equity method investments 27,589,200 27,589,200 Total long-term equity investments 37,589,200 82,888,709 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | As of December 31, 2019 December 31, 2020 Accounts receivable, gross – current 526,822,932 824,487,072 Accounts receivable, gross – non-current — 54,638,516 Less: allowance for credit losses (1) — (86,697,899 ) Accounts receivable, net 526,822,932 792,427,689 (1) The allowance for credit losses reflects the Group’s estimated probable incurred losses and includes the adoption impact of RMB6.9 million which was recorded to the accumulated deficit on January 1, 2020. The Group assesses the creditworthiness and collectability of the portfolios of respective accounts receivables, mainly based on credit risk, industry risk, historical collection pattern, payment terms and reputations of respective customers with accounts receivable, using an established systematic process on a pooled basis within each credit risk levels of the customers. When assigning customers into different credit risk levels, factors like capital condition, reputation, industry, collection history, and external credit references of the customers are considered. In the consideration of above factors, the Group determines that each portfolio of respective accounts receivables subject to credit losses within each credit risk level is homogenous with similar credit characteristics. |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets | As of December 31, 2019 December 31, 2020 Prepayment and other current assets Value-added tax receivable 48,451,205 52,411,862 Prepayments of advertisement fee (2) 1,456,410 23,342,714 Deposit to third-party payment service providers (1) 62,240,852 19,838,590 Deposit to third-party advertising platforms (4) 16,821,962 15,144,830 Loans and advance to employees (5) 8,723,553 11,309,123 Lease deposits-current portion 4,647,787 10,059,017 Prepayment for the use of contents (3) 34,361,525 224,975,224 Prepayments of business insurance 3,607,569 3,131,906 Cooperation service fee-current 1,676,555 1,568,097 Prepayments of IT service fee 1,110,150 419,715 Prepayment of office lease 93,783 43,104 Receivable for share option exercises (7) 22,212,500 — Contract assets (6) 18,867,925 — Interest receivables 4,272,559 — Others 6,184,051 2,864,321 234,728,386 365,108,503 Non-current Prepayment for intangible assets (Note 21) — 136,133,193 Long-term cooperation service fee (Note 3c) 6,251,505 4,266,143 Long-term lease deposits 7,944,497 3,891,804 Prepayment for purchase of intangible asset — 3,800,000 Long-term prepayments of advertisement fee (2) 6,615,789 — Total 20,811,791 148,091,140 (1) Deposit to third party payment service providers represent cash prepaid to the Group’s third party on-line a (2) Prepayments of advertisement fee represent prepayments made to service providers for future services to promote the Company’s mobile applications through online and media advertising. Such service providers charge expenses based on activities during the month, and once confirmed by the Company, the expenses will be deducted from the prepayments already made by the Company. Prepayments of advertising fee is recorded when prepayments are made to service providers and are expensed as services are provided. (3) Prepayment for the use of contents represents the payment to the content providers for the use of the content on the Company’s mobile applications for a period from 6 (4) Deposit to third-party advertising platforms represents the deposit made to third-party advertising platforms that the Group provides agent and platform service by facilitating the advertising customers to select third-party advertising platforms to display the advertisements. The deposit is used to secure the timely payment of the agent and platform service fee received by the Group to the third-party platforms. (5) Loans to employees mainly represents loans to the employees to meet their personal needs for a period within one year. (6) In June 2019, the Company entered into one-year non-monetary (7) Receivables for share option exercises represent incoming proceeds to be received by the Company on behalf of employees, executives and directors for the sale of the shares as a result of the exercise of share options by these personnel. The gross proceeds will be remitted to the Company by a designated financial institution, which the Company is then obligated to transfer to the relevant personnel once the proceeds are received by the Company. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: As of December 31, 2019 December 31, 2020 Cost: Office equipment 26,203,041 24,261,802 Leasehold improvements 12,575,518 17,948,499 Total cost 38,778,559 42,210,301 Less: Accumulated depreciation (14,663,185 ) (24,997,502 ) Property and equipment, net 24,115,374 17,212,799 |
Summary of Depreciation Expense | Depreciation expense recognized for the years ended December 31, 2018, 2019 and 2020 are summarized as follows: Year ended December 31, 2018 2019 2020 Cost of revenues 156,725 3,182,644 3,463,304 Research and development expenses 3,238,987 5,075,929 6,653,321 Sales and marketing expenses 417,934 959,610 973,899 General and administrative expenses 477,638 785,472 1,053,401 Total 4,291,284 10,003,655 12,143,925 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: As of December 31, 2019 December 31, 2020 Cost: Acquired right to operate an online audio/video content platform including deferred tax liabilities impact 96,129,761 96,129,761 Computer software 4,971,310 12,176,338 Total cost 101,101,071 108,306,099 Less: Accumulated amortization (12,157,392 ) (25,183,127 ) Intangible assets, net 88,943,679 83,122,972 |
Summary of Amortization Expense | Amortization expense for intangible assets for the years ended December 31, 2018, 2019 and 2020 is as follows: Year ended December 31, 2018 2019 2020 Cost of revenues 1,602,163 9,612,976 9,612,976 General and administrative expenses — 942,253 3,412,759 Total 1,602,163 10,555,229 13,025,735 |
Summary of Future intangible asset amortization | Future intangible asset amortization as of December 31, 2020 is as follows: Year ended December 31, Amortization Expense 2021 13,562,123 2022 12,635,179 2023 10,399,789 2024 9,637,359 2025 9,637,359 Thereafter 27,251,163 Total 83,122,972 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of components of lease expenses | (a) The components of lease expenses were as follows: Year ended December 31, 2019 2020 Lease cost: Amortization of right-of-use 39,693,063 39,371,454 Interest of lease liabilities 3,820,727 1,833,789 Expenses for short-term leases within 12 months 423,271 6,093,217 Total lease cost 43,937,061 47,298,460 |
Schedule of Supplemental Cash Flow information Related to Leases | (b) Supplemental cash flow information related to leases was as follows: Year ended December 31, 2019 2020 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 45,584,621 39,073,120 Right-of-use 55,834,552 20,448,582 |
Schedule of Supplemental BaIance Sheet information Related to Leases | (c) Supplemental balance sheet information related to leases was as follows: Year ended December 31, 2019 2020 Operating leases Operating lease right-of-use 69,241,754 50,318,882 Operating lease liabilities, current (38,210,188 ) (20,760,421 ) Operating lease liabilities, non-current (26,651,446 ) (23,755,721 ) Total operating lease liabilities (64,861,634 ) (44,516,142 ) As of December 31, 2019 2020 Weighted-average remaining lease term Operating leases 2.2 years 2.5 years Weighted-average discount rate Operating leases 5.7 % 5.7 % |
Summary of maturities of lease liabilities | (d) Maturities of lease liabilities were as follows: As of December 31, 2020 2021 22,591,187 2022 11,815,301 2023 8,942,549 2024 and thereafter 4,460,436 Total undiscounted lease payments 47,809,473 Less: imputed interest (3,293,331 ) Total lease liabilities 44,516,142 |
Schedule of Future Minimum Payments under Non-cancellable Operating Leases for Office Rental | (e) Future minimum lease payments for the Company’s operating leases were as follows: As of December 31, 2020 2021 29,679,352 2022 19,570,885 2023 10,179,846 2024 and thereafter 5,089,923 64,520,006 |
Tax Payable (Tables)
Tax Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tax Payable [Abstract] | |
Schedule of Tax Payable | As of December 31, 2019 December 31, 2020 Value added tax 91,894,179 73,804,596 Corporate income tax 7,246,119 5,374,231 Individual income tax withholding 17,821,617 16,516,542 Urban maintenance and construction tax 697,134 712,407 Stamp duty 497,445 735,809 Total 118,156,494 97,143,585 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Liabilities | As of December 31, 2019 December 31, 2020 Accrued liabilities and other current liabilities Accrued advertising and marketing expense 624,684,280 610,330,541 Tax surcharges and other fees (1) 134,003,155 134,174,460 Accrued professional service fees 4,695,155 4,381,461 Accrued convertible redeemable preferred shares issuance cost of a subsidiary 435,000 3,135,298 Refund from depositary bank (2) 2,640,471 2,469,655 Payables to employees related to net proceeds from share options exercised 18,439,722 — Accrued employee welfare expense 1,547,431 — Others 2,050,228 8,942,857 788,495,442 763,434,272 Non-current Non-refundable (2) 7,212,463 4,255,931 Total 795,707,905 767,690,203 (1) This balance is primarily related to a cultural development fee on the provision of advertising services in the PRC that the Group is subject to. The applicable tax rate was 3% of the net advertising revenues up until June 30, 2019, and was updated to 1.5% effective July 1, 2019. Due to the COVID-19 (2) The Company received non-refundable |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Share Option Activity | The following table summarizes the share option activity for the years ended December 31, 2018, 2019 and 2020: Number of options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Weighted Average Grant Fair RMB In Years RMB’000 RMB Outstanding at January 1, 2018 10,000,000 0.0007 8.7 525,086 3.89 Granted 2,893,020 0.0007 130.51 Exercised (500,000 ) 0.0007 Forfeited (217,437 ) 0.0007 Outstanding at December 31, 2018 12,175,583 0.0007 8.1 1,939,500 33.95 Granted 3,538,204 0.0007 270.11 Exercised (2,197,104 ) 0.0007 Forfeited (2,170,302 ) 0.0007 Outstanding at December 31, 2019 11,346,381 0.0007 7.7 1,079,661 96.29 Granted 2,607,249 0.0007 104.85 Exercised (3,144,786 ) 0.0007 Forfeited (1,378,694 ) 0.0007 Outstanding at December 31, 2020 9,430,150 0.0007 7.2 391,330 78.35 Vested and expected to vest at December 31, 2020 8,785,149 0.0007 7.1 364,564 70.68 Exercisable at December 31, 2020 6,615,731 0.0007 6.6 274,538 48.66 |
Fair Values of Share Options Granted | The fair values of share options granted during the years ended December 31, 2018, 2019 and 2020. Options Granted in the year ended December 31, 2018 Options Granted in the year ended December 31, 2019 Options Granted in the year ended December 31, 2020 Expected volatility 50.71%~51.25% 49.92%-50.65% 57.77%-58.65% Risk-free interest rate 2.83%~3.15% 1.80%-2.52% 0.82%-1.09% Exercise multiple 2.8 2.8 2.8 Expected dividend yield 0% 0% 0% Contractual term 10 10 10 Expected forfeiture rate (post-vesting) 0~20% 0-20% 0-20% Fair value of the common share on the date of option grant (RMB) 122.52~153.23 94.96-310.64 41.50-77.78 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: Year ended December 31, 2018 2019 2020 % % % PRC Statutory income tax rates 25.0 % 25.0 % 25.0 % Change in valuation allowance (15.3 %) (23.2 %) (13.9 %) Permanent book — tax difference (9.9 %) (2.0 %) (9.2 %) Difference in EIT rates of certain subsidiaries 0.2 % 0.0 % (2.2 %) Total 0.0 % (0.2 %) (0.3 %) |
Schedule of Loss Before Income Tax Expenses (Benefit) for Domestic and Foreign | The loss before income tax expenses (benefit) for domestic and foreign components’ are as follows: Year ended December 31, 2018 2019 2020 Domestic 998,299,456 2,404,676,422 558,656,558 Foreign 947,947,297 279,748,549 547,517,245 Total 1,946,246,753 2,684,424,971 1,106,173,803 |
Schedule of Current and Deferred Portions of Income Tax Expense (Benefit) | The current and deferred portions of income tax expense (benefit) included in the consolidated statements of comprehensive loss are as follows: Year ended December 31, 2018 2019 2020 Current income tax expense — 7,246,119 1,395,870 Deferred income tax benefit (400,541 ) (2,403,243 ) (2,403,240 ) Income tax expense (benefit) (400,541 ) 4,842,876 (1,007,370 ) |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The following table sets forth the significant components of the deferred tax assets and deferred tax liabilities: As of December 31, 2019 December 31, 2020 Deductible temporary difference to accruals and others 442,696,181 467,705,757 Tax losses carried forward 542,743,772 588,547,586 Less: Valuation allowance (985,439,953 ) (1,056,253,343 ) Total of deferred tax assets — — Taxable temporary difference related to acquired right to operate an online audio/video content platform 21,228,656 18,825,416 Total of deferred tax liabilities 21,228,656 18,825,416 |
Schedule of Movement of Valuation Allowance | Year ended December 31, 2018 2019 2020 Beginning balance 27,776,443 326,336,233 985,439,953 Current year additions 298,559,790 665,361,186 100,629,055 Current year reversals — (6,257,466 ) (29,815,665 ) Ending balance 326,336,233 985,439,953 1,056,253,343 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests And Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interests Activities | The Company’s redeemable non-controlling Year ended December 31, 2018 2019 2020 Beginning balance — 96,936,855 495,844,565 Issuance of Fun Preferred Shares, net of issuance costs 97,019,860 380,259,607 733,238,486 Foreign exchange impact (1,061,206 ) (1,899,929 ) (37,374,084 ) Repurchase of Series B Preferred Shares — — (146,459,680 ) Accretion to redemption value of redeemable non-controlling 978,201 20,548,032 48,276,771 Ending balance 96,936,855 495,844,565 1,093,526,058 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Transaction and Balance Amount Due to/from Related Parties | For the years ended December 31, 2018, 2019 and 2020, the transactions and balance amount due to/from related parties was as follows: Transaction amount with related parties Year ended December 31, 2018 2019 2020 Services provided by the Group Agent and platform service provided to a related party (1) 29,597,143 — — Advertising and marketing service provided to related parties (2) 17,447,475 473,215,790 250,874,596 Year ended December 31, 2018 2019 2020 Services received by the Group Advertisement costs charged from a related party (3) — 35,605,180 29,206,380 Gaming cost sharing charged from a related party (4) — 6,806,424 1,844,720 Advertising Service fee charged from related parties (5) 15,815,201 3,284,223 4,192,090 ICloud server and other service fee charged from a related party (6) 13,875,839 — — In July 2019, the Company invested RMB3.0 million in a company which the founder’s controlled entity has significant influence in. The investment is measured using the measurement alternative recorded at cost less any impairment since it does not have a readily determinable fair value. The carrying value of the investment remained at RMB3.0 million as of December 31, 2020. Balance amount with related parties As of December 31, 2019 December 31, 2020 Amount due from related parties (2) 278,155,878 383,594,360 Amount due to related parties (3)& (4) 3,436,586 9,426,883 Loan from a related party (7) — 13,049,800 (1) The Group provided agent and platform service between the advertising customers and a company in which the founder of the Company was a member of key management by facilitating the advertising customers to display their advertisements. The founder was no longer a member of management of that company as of September 30, 2018. (2) For the year ended December 31, 2018, the service fee charged to related parties consisted of: the advertising and marketing service of RMB 4.5 million provided to a company in which the founder of the Company was a member of key management (the founder was no longer a member of management of that company as of September 30, 2018), and the advertising service of RMB 12.9 million provided to Series B1 shareholder through September 2018 (After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018). For the year ended December 31, 2019 and 2020, the service fee of RMB473.2 million and RMB250.9 million charged to related parties represents advertising and marketing services provided to companies under the common control of the founder, to help promote these companies’ online applications, which were developed in late 2018. As of December 31, 2020, the amounts due from related parties is comprised of RMB368.5 million which pertains to accounts receivable from related parties revenues generated, whereas the remaining RMB15.1 million is a fee that the Company prepaid to a related party to place advertisements on behalf of their customers on the related party platform; the balance are settled and recorded as cost of revenues (see (5) below) as the advertisement services are provided. These balances were RMB262.6 million and RMB15.6 million, respectively, as of December 31, 2019. Out of the accounts receivable from related parties of RMB262.6 million as of December 31, 2019, a total of RMB160 million of the balances have been collected as of December 31, 2020; the remaining RMB102.6 million was collected during the first quarter of 2021. Although the receivables of RMB102. 6 For the revenue recognized in 2020, payments have not been received as the balances as of December 31, 2020 are still within the nine to twelve months payment terms and expect to be settled within the payment terms. (3) In 2019 the Group entered into CPM (cost per impression) arrangements with media platforms under the common control of the founder for the Group’s customer’s advertisement placement. The total service fee charged from related parties amounted to (4) In 2019 the Group entered into a game cooperation agreement with a game developing company which the founder’s controlled entity has significant influence over. The Company is the principal in the arrangement. The total service fee represents the amount paid to the game developing company in relation to the arrangement, and amounted to RMB6.8 million and RMB1.8 million for the years ended December 31, 2019 and 2020, respectively. (5) For the year ended December 31, 2018, the Group entered into a cooperation agreement with Series B1 shareholder to promote the Company’s mobile application, and the cooperation agreement requires the Company to prepay a total service fee of RMB 31.5 million which will be recognized as expense over 3 years. For the year ended December 31, 2018, total service fee recognized as expense amounted to RMB 15.8 million. After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018. For the years ended December 31, 2019 and 2020, the service fee charged from related parties represented the expense charged from a company under common control of the founder which provided the Group advertising and marketing services. (6) The service fee mainly represented cloud server and short message service fees charged from Series B1 shareholder through September 2018. After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018. (7) The Company borrowed an interest free loan of RMB13.0 million from an entity under common control of the founder in December 2020. The loan was repaid in the first quarter of 2021. |
Basic and Diluted Net Loss pe_2
Basic and Diluted Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Loss per Share and Diluted Loss per Share | Basic loss per share and diluted loss per share have been calculated in accordance with ASC 260 on computation of earnings per share for the years ended December 31, 2018, 2019 and 2020 as follows: Year ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2020 Numerator: Net loss attributable to Qutoutiao Inc. (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) Accretion on Series A convertible redeemable preferred shares redemption value (15,718,213 ) — — Accretion on Series A1 convertible redeemable preferred shares redemption value (4,840,875 ) — — Accretion on Series B1 convertible redeemable preferred shares redemption value (37,001,459 ) — — Accretion on Series B2 convertible redeemable preferred shares redemption value (31,800,587 ) — — Accretion on Series B3 convertible redeemable preferred shares redemption value (12,312,158 ) — — Accretion on Series C1 convertible redeemable preferred shares redemption value (133,451 ) — — Deemed dividend to preferred shareholders (Note 15) (1,916,871 ) — — Accretion on redemption value of Series A convertible redeemable preferred shares of a subsidiary (Note 21) (978,201 ) (12,171,842 ) (13,509,457 ) Accretion on redemption value of Series B convertible redeemable preferred shares of a subsidiary (Note 21) — (8,376,190 ) (33,187,330 ) Accretion on redemption value of Series C convertible redeemable preferred shares of a subsidiary (Note 21) — — (1,579,984 ) Gains on repurchase of convertible redeemable preferred shares (Note 15) 18,332,152 — — Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) — — 14,841,680 Net loss attributable to ordinary shareholders-Basic and diluted (2,028,941,350 ) (2,709,228,737 ) (1,137,873,932 ) Denominator: Denominator for basic and diluted loss per share Weighted- average ordinary shares outstanding Basic and diluted 38,507,184 68,749,981 72,513,077 Basic and diluted loss per share (52.69 ) (39.41 ) (15.69 ) Denominator for basic and diluted loss per ADS Weighted-average ADS outstanding Basic and diluted 154,028,736 274,999,924 290,052,308 Basic and diluted loss per ADS (13.17 ) (9.85 ) (3.92 ) |
Schedule of Potential Ordinary Shares Excluded from Computation of Diluted Net Loss per Ordinary Share | The following potential ordinary shares were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect: Year ended December 31, 2018 2019 2020 Preferred shares — weighted average 10,134,756 — — Share options — weighted average 6,350,735 4,119,918 1,353,808 Restricted shares — weighted average 6,976,785 — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Non-cancellable Capital Expenditure | As of December 31, 2020, future minimum payments under non-cancellable RMB US$ (Note 2(e)) Years Ending December 31, 2021 8,926,000 1,367,969 202 2 94,000 14,406 2023 188,000 28,816 |
Schedule of Future Minimum Lease Payments with Respect to Agreements | As of December 31, 2020, future minimum payments with respect to these agreements consist of the following: RMB US$ (Note 2(e)) Years Ending December 31, 2021 103,289,167 15,829,757 2022 12,862,500 1,971,264 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Condensed Financial Information of the Parent Company BALANCE SHEETS As of December 31, December 31, 2020 RMB RMB US$(Note2(e)) ASSETS Current assets: Cash and cash equivalents 148,279,138 1,932,747 296,206 Short-term investments 498,100,680 — — Prepayments and other current assets 8,030,839 3,618,939 554,627 Total current assets 654,410,657 5,551,686 850,833 Other non-current 6,251,505 4,266,143 653,815 Total non-current 6,251,505 4,266,143 653,815 Total assets 660,662,162 9,817,829 1,504,648 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Accrued expenses and other current liabilities 2,640,434 2,510,911 384,814 Non-current Convertible loan 1,218,905,676 1,174,867,883 180,056,381 Other non-current 7,212,463 4,255,931 652,250 Payables to subsidiaries and VIEs 133,385,543 108,957,614 16,698,485 Total non-current 1,359,503,682 1,288,081,428 197,407,116 Total liabilities 1,362,144,116 1,290,592,339 197,791,930 Shareholders’ deficit: Class A ordinary shares (US$0.0001 par value, 50,000,000 shares authorized as of December 31, 2019 and 2020; 40,812,245 shares and 42,812,245 issued as of December 31, 2019 and 2020, 32,176,825shares and 35,321,611 shares outstanding as of December 31, 2019 and 2020) 20,260 22,426 3,437 Class B ordinary shares (US$0.0001 par value; 34,248,442 shares authorized as of December 31, 2019 and 2020; 32,937,193 shares issued and outstanding as of December 31, 2019 and 2020) 24,391 24,391 3,738 Additional paid-in 4,321,100,861 4,784,314,735 733,228,312 Treasury stock (US$0.0001 par value; 8,635,420 and 7,490,634 shares as of December 31, 2019 and December 31, 2020, respectively) (142,228,779 ) (142,228,779 ) (21,797,514 ) Accumulated other comprehensive loss (17,934,525 ) 84,319,590 12,922,543 Accumulated deficit (4,862,464,162 ) (6,007,226,873 ) (920,647,797 ) Total shareholders’ deficit (701,481,954 ) (1,280,774,510 ) (196,287,281 ) Total liabilities and shareholders’ deficit 660,662,162 9,817,829 1,504,649 |
Statements of Comprehensive Loss | STATEMENTS OF COMPREHENSIVE LOSS Year ended December 31, 2018 2019 2020 RMB RMB RMB US$(Note 2 (e)) Operating expenses: General and administrative (959,590,151 ) (287,026,788 ) (471,730,407 ) (72,295,848 ) Total operating expenses (959,590,151 ) (287,026,788 ) (471,730,407 ) (72,295,848 ) Loss from operations (959,590,151 ) (287,026,788 ) (471,730,407 ) (72,295,848 ) Investment income 3,098,150 — — — Interest income 23,805,861 44,271,057 2,819,127 432,050 Interest expense — (26,878,316 ) (36,773,704 ) (5,635,817 ) Foreign exchange related gains, net — — (6,920 ) (1,061 ) Other income/(expenses), net — — (41,744 ) (6,398 ) Loss from subsidiaries and VIEs (1,009,885,547 ) (2,419,046,658 ) (598,705,193 ) (91,755,584 ) Loss before provision for income taxes (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) (169,262,658 ) Provision for income taxes — — — — Net loss (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) (169,262,658 ) Accretion to convertible redeemable preferred shares redemption value (101,806,743 ) — — — Accretion to redemption value of convertible redeemable preferred shares of a subsidiary (978,201 ) (20,548,032 ) (48,276,771 ) (7,398,739 ) Gains on repurchase of convertible redeemable preferred Shares 18,332,152 — — — Gains on repurchase of convertible redeemable preferred shares of a subsidiary — — 14,841,680 2,274,587 Deemed dividend to preferred shareholders (1,916,871 ) — — — Net loss attributable to ordinary shareholders (2,028,941,350 ) (2,709,228,737 ) (1,137,873,932 ) (174,386,810 ) Net loss (1,942,571,687 ) (2,688,680,705 ) (1,104,438,841 ) (169,262,658 ) Foreign currency translation adjustment, net of nil tax (16,453,526 ) (1,505,650 ) 102,254,115 15,671,129 Comprehensive loss (1,959,025,213 ) (2,690,186,355 ) (1,002,184,726 ) (153,591,529 ) |
Statements of Cash Flows | STATEMENTS OF CASH FLOWS 2018 2019 2020 RMB RMB RMB US$(Note 2 (e)) Cash flows provided by/(used in) operating activities 23,710,900 39,182,532 (354,228 ) (54,288 ) Cash flows used in investing activities (591,572,091 ) (3,327,606,050 ) (10,007,458 ) (15,593,371 ) Cash flows provided by/(used in) financing activities 2,206,005,176 1,397,381,828 (135,744,000 ) (1,533,710 ) Effect of exchange rate changes on cash 118,146,408 15,905,018 (240,705 ) (36,890 ) Net increase in cash and cash equivalents 1,756,290,393 (1,875,136,672 ) (146,346,391 ) (22,428,566 ) Cash and cash equivalents, beginning of year 267,125,417 2,023,415,810 148,279,138 22,724,772 Cash and cash equivalents, end of year 2,023,415,810 148,279,138 1,932,747 296,206 |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Principal Subsidiaries and Consolidated Affiliated Entities (Details) | 12 Months Ended |
Dec. 31, 2020 | |
InfoUniversal | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2017-08 |
Place of incorporation | Hong Kong |
Percentage of direct or indirect economic ownership | 100.00% |
Qtech | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-04 |
Place of incorporation | USA |
Percentage of direct or indirect economic ownership | 100.00% |
Fun Literature | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-10 |
Place of incorporation | Cayman Islands |
Percentage of direct or indirect economic ownership | 78.00% |
Fun Literature HK | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-10 |
Place of incorporation | Hong Kong |
Percentage of direct or indirect economic ownership | 100.00% |
Quyun WFOE | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2017-10 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Dianguan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-02 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
QTT Asia | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-04 |
Place of incorporation | British Virgin Islands |
Percentage of direct or indirect economic ownership | 100.00% |
Zhicao WFOE | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-12 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Chenxing | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Yanmo | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-10 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Shuqin | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-11 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Wennuo | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-07 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Jifen | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2012-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Churun | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-11 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Big Rhinoceros Horn | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-11 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
DragonS Information | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Zhangduan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2017-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Rapid Information | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Tuohuan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-09 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Ququanquan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-10 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Xiaoqiao | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-09 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Xunkai | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-10 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Huaian Beixia | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-11 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Douzao | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-07 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Xike | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2016-07 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Tuile | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2016-07 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Qukandian | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2017-04 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Heitu | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Zheyun | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Supreme Pole International Sports | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Quwen | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-08 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Manchuan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Yunxi | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-04 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Branch Xijie | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Xijie | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Jietu | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Luoshi | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-01 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Xiaying | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-11 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Songmang | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-12 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Miaoqu | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-12 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Xixia | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-10 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Mili | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Kunjie | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Shanghai Branch Qingluo | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2020-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Qingluo | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100.00% |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Details) | Apr. 04, 2019CNY (¥) | Oct. 13, 2017 | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Sep. 30, 2019 | Sep. 23, 2019 | Apr. 04, 2019USD ($) |
Variable Interest Entity [Line Items] | ||||||||||
Net losses | ¥ 1,105,200,000 | $ 169,374,166 | ¥ 2,689,267,847 | ¥ 1,945,846,212 | ||||||
Accumulated deficit | 6,007,200,000 | 4,862,464,162 | $ 920,647,797 | |||||||
Net cash used in operating activities | (863,800,000) | $ (132,379,179) | (2,367,295,070) | (434,764,524) | ||||||
Working capital | 586,300,000 | 816,500,000 | ||||||||
Cash and cash equivalent | 494,474,891 | 347,817,093 | 2,186,288,246 | 75,781,592 | ||||||
Short-term investments | 391,033,374 | 1,276,830,926 | 59,928,486 | |||||||
Restricted cash | 100,300,000 | 27,871,552 | 15,374,090 | |||||||
Current liabilities | 1,886,000,000 | 1,875,697,710 | 289,040,664 | |||||||
Long-term liabilities | 1,221,700,000 | 1,273,998,241 | $ 187,234,476 | |||||||
Debt Instrument, Face Amount | 13,000,000 | |||||||||
Exclusive Technology Support and Consulting Services Agreement Between Jifen VIE and Quyun WFOE | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Agreement expiration term | 10 years | |||||||||
Agreement notice period | 30 days | |||||||||
Service fee paid and payable | ¥ 0 | ¥ 0 | ¥ 0 | |||||||
Exclusive Option Agreement Among Jifen VIE, Quyun WFOE and Each of Jifen VIE shareholders | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Agreement expiration term | 10 years | |||||||||
Agreement notice period | 30 days | |||||||||
Voting Rights Proxy Agreement Among Jifen VIE, Quyun WFOE and Each of Jifen VIE Shareholders | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Agreement expiration term | 10 years | |||||||||
Agreement notice period | 30 days | |||||||||
Agreement automatic renewal term | 1 year | |||||||||
Loan Agreement Between Quyun WFOE and Jifen VIE | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Maturity period of loan | 10 years | 10 years | ||||||||
The Paper | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Equity interests percentage | 1.00% | 1.00% | ||||||||
InfoUniversal | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ownership percentage | 100.00% | 100.00% | ||||||||
InfoUniversal | Quyun WFOE | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ownership percentage | 100.00% | |||||||||
Alibaba Investment Limited [Member] | Convertible Loan Agreement [Member] | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Debt Instrument, Face Amount | ¥ 1,147,000,000 | $ 171,100,000 | ||||||||
Debt Instrument, Maturity Date | Apr. 4, 2022 |
Principal Accounting Policies -
Principal Accounting Policies - Schedule of Assets, Liabilities, Result of Operations and Cash Flows of VIEs and its Subsidiaries (Details) | 12 Months Ended | |||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |||
Current assets: | ||||||||
Cash and cash equivalents | ¥ 494,474,891 | ¥ 347,817,093 | ¥ 2,186,288,246 | $ 75,781,592 | ||||
Restricted cash | 100,300,000 | 27,871,552 | 15,374,090 | |||||
Short-term investments | 391,033,374 | 1,276,830,926 | 59,928,486 | |||||
Accounts receivable, net | 737,789,173 | 526,822,932 | 113,071,138 | |||||
Amounts due from related parties | 383,594,360 | [1] | 278,155,878 | [1] | 58,788,408 | |||
Prepayments and other current assets | 365,108,503 | 234,728,386 | 55,955,326 | |||||
Total current assets | 2,472,316,241 | 2,692,226,767 | 378,899,040 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 17,212,799 | 24,115,374 | 2,637,977 | |||||
Accounts receivables, non-current | 54,638,516 | 8,373,719 | ||||||
Long-term investments | 82,888,709 | 37,589,200 | 12,703,250 | |||||
Right-of-use assets | 50,318,882 | 69,241,754 | 7,711,706 | |||||
Intangible assets | 83,122,972 | 88,943,679 | 12,739,153 | |||||
Other non-current assets | 148,091,140 | 20,811,791 | 22,695,960 | |||||
Total non-current assets | 443,541,348 | 247,970,128 | 67,975,685 | |||||
Total assets | 2,915,857,589 | 2,940,196,895 | 446,874,725 | |||||
Current liabilities | ||||||||
Short-term borrowings | 70,000,000 | 10,727,969 | ||||||
Accounts payable | 448,980,738 | 328,268,752 | 68,809,309 | |||||
Amount due to related parties | 9,426,883 | [2],[3] | 3,436,586 | [2],[3] | 1,444,733 | |||
Registered users' loyalty payable | 72,600,000 | 134,145,439 | 11,130,505 | |||||
Advance from customers and deferred revenue | 140,776,350 | 246,630,128 | 21,574,920 | |||||
Salary and welfare payable | 149,703,938 | 129,169,734 | 22,943,132 | |||||
Tax payable | 97,143,585 | 118,156,494 | 14,887,906 | |||||
Lease liabilities, current | 20,760,421 | 38,210,188 | 3,181,674 | |||||
Accrued liabilities related to users' loyalty programs | 100,100,000 | 89,184,947 | 15,339,129 | |||||
Accrued liabilities and other current liabilities | 763,434,272 | 788,495,442 | 117,001,418 | |||||
Total current liabilities | 1,886,000,000 | 1,875,697,710 | 289,040,664 | |||||
Non-current liabilities: | ||||||||
Lease liabilities, non-current | 23,755,721 | 26,651,446 | 3,640,724 | |||||
Total liabilities | 3,107,695,299 | 3,149,695,951 | $ 476,275,140 | |||||
Net revenues | 5,285,195,023 | $ 809,991,575 | 5,570,080,604 | 3,022,145,785 | ||||
Net loss | (1,104,438,841) | (169,262,658) | (2,688,680,705) | (1,942,571,687) | ||||
Net cash provided used in operating activities | (863,800,000) | (132,379,179) | (2,367,295,070) | (434,764,524) | ||||
Net cash provided by/(used in) investing activities | 782,544,989 | 119,930,266 | (1,224,151,603) | (72,492,552) | ||||
Net cash provided by/ (used in) financing activities | 307,746,200 | $ 47,164,168 | 1,768,001,310 | 2,298,043,751 | ||||
VIEs and its subsidiaries | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 12,083,788 | 7,807,740 | ||||||
Restricted cash | 64,315,940 | 27,871,552 | ||||||
Short-term investments | 98,350,000 | 31,430,000 | ||||||
Accounts receivable, net | 737,789,173 | 526,689,373 | ||||||
Amount due from subsidiaries of the Company | 1,173,052,601 | 548,857,973 | ||||||
Amounts due from related parties | 368,465,174 | 262,581,158 | ||||||
Prepayments and other current assets | 330,887,406 | 172,737,341 | ||||||
Total current assets | 2,784,944,082 | 1,577,975,137 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 16,961,356 | 23,152,687 | ||||||
Accounts receivables, non-current | 54,638,516 | |||||||
Long-term investments | 8,000,000 | 10,000,000 | ||||||
Right-of-use assets | 48,109,166 | 61,931,400 | ||||||
Intangible assets | 7,821,323 | 4,029,056 | ||||||
Other non-current assets | 143,824,997 | 14,211,365 | ||||||
Total non-current assets | 279,355,358 | 113,324,508 | ||||||
Total assets | 3,064,299,440 | 1,691,299,645 | ||||||
Current liabilities | ||||||||
Short-term borrowings | 50,000,000 | |||||||
Accounts payable | 399,857,773 | 313,189,188 | ||||||
Amount due to subsidiaries of the Company | 5,426,800,647 | 2,734,962,567 | ||||||
Amount due to related parties | 4,294,733 | 3,330,101 | ||||||
Registered users' loyalty payable | 66,180,291 | 127,253,323 | ||||||
Advance from customers and deferred revenue | 140,776,350 | 246,251,382 | ||||||
Salary and welfare payable | 115,307,402 | 126,884,752 | ||||||
Tax payable | 98,797,489 | 93,025,726 | ||||||
Lease liabilities, current | 20,030,138 | $ 31,275,663 | ||||||
Accrued liabilities related to users' loyalty programs | 100,087,815 | 89,184,947 | ||||||
Accrued liabilities and other current liabilities | 607,455,490 | 761,687,143 | ||||||
Total current liabilities | 7,029,588,128 | 4,527,044,792 | ||||||
Non-current liabilities: | ||||||||
Lease liabilities, non-current | 23,533,711 | 25,279,037 | ||||||
Total liabilities | 7,053,121,839 | 4,552,323,829 | ||||||
Net revenues | 5,283,682,290 | 5,627,372,568 | 3,065,573,756 | |||||
Net loss | (1,096,208,019) | (2,469,063,768) | (1,882,747,022) | |||||
Net cash provided used in operating activities | (391,006,589) | (2,782,745,243) | (77,218,211) | |||||
Net cash provided by/(used in) investing activities | (80,506,432) | (60,545,682) | 90,767,728 | |||||
Net cash provided by/ (used in) financing activities | 512,233,457 | 2,859,505,971 | (5,402,941) | |||||
Net increase in cash and cash equivalents | ¥ 40,720,436 | ¥ 16,215,046 | ¥ 8,146,576 | |||||
[1] | For the year ended December 31, 2018, the service fee charged to related parties consisted of: the advertising and marketing service of RMB 4.5 million provided to a company in which the founder of the Company was a member of key management (the founder was no longer a member of management of that company as of September 30, 2018), and the advertising service of RMB 12.9 million provided to Series B1 shareholder through September 2018 (After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018). For the year ended December 31, 2019 and 2020, the service fee of RMB473.2 million and RMB250.9 million charged to related parties represents advertising and marketing services provided to companies under the common control of the founder, to help promote these companies’ online applications, which were developed in late 2018. As of December 31, 2020, the amounts due from related parties is comprised of RMB368.5 million which pertains to accounts receivable from related parties revenues generated, whereas the remaining RMB15.1 million is a fee that the Company prepaid to a related party to place advertisements on behalf of their customers on the related party platform; the balance are settled and recorded as cost of revenues (see (5) below) as the advertisement services are provided. These balances were RMB262.6 million and RMB15.6 million, respectively, as of December 31, 2019. Out of the accounts receivable from related parties of RMB262.2 million as of December 31, 2019, a total of RMB160 million of the balances have been collected as of December 31, 2020; the remaining RMB102.2 million was collected during the first quarter of 2021. Although the receivables of RMB102.2 million were settled after the due date, as these companies are under the common control of the founder and they have demonstrated an ability to continuously pay off their balances, the Company did not view this delay in payment as a sign of collectability risk. For the revenue recognized in 2020, payments have not been received as the balances as of December 31, 2020 are still within the nine to twelve months payment terms and expect to be settled within the payment terms. | |||||||
[2] | In 2019 the Group entered into a CPM (cost per impression) arrangement with a media platform under the common control of the founder for the Group’s customer’s advertisement placement. The total service fee charged from the related party amounted to RMB35.6 million and RMB29.2 million for the years ended December 31, 2019 and 2020, respectively. | |||||||
[3] | In 2019 the Group entered into a game cooperation agreement with a game developing company which the founder’s controlled entity has significant influence over. The Company is the principal in the arrangement. The total service fee represents the amount paid to the game developing company in relation to the arrangement, and amounted to RMB6.8 million and RMB1.8 million for the years ended December 31, 2019 and 2020, respectively. |
Principal Accounting Policies_3
Principal Accounting Policies - Additional Information (Details) | Jul. 01, 2019 | Sep. 18, 2018$ / sharesshares | Jan. 03, 2018 | Sep. 30, 2018shares | Feb. 28, 2018CNY (¥) | Jan. 31, 2018$ / sharesshares | Jun. 30, 2019 | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2020USD ($) | Jan. 01, 2020CNY (¥) | Jul. 31, 2019CNY (¥) | Mar. 28, 2019USD ($) | Dec. 31, 2018$ / shares |
Accounting Policies [Line Items] | ||||||||||||||||||
Shares repurchased value | ¥ 142,200,000 | ¥ 142,228,779 | ||||||||||||||||
Common stock shares retired | shares | 0 | 0 | ||||||||||||||||
Restricted cash | ¥ 100,300,000 | 27,871,552 | $ 15,374,090 | |||||||||||||||
Allowance for credit losses | 0 | ¥ 6,900,000 | ||||||||||||||||
Change in goodwill | $ | $ 0 | $ 0 | ||||||||||||||||
Short-term borrowings | 70,000,000 | 10,727,969 | ||||||||||||||||
Convertible loan | ¥ 1,174,900,000 | ¥ 1,218,905,676 | $ 180,056,381 | |||||||||||||||
Exchange rates used for translation | 6.5249 | 6.9762 | 6.5249 | |||||||||||||||
Convenience translation, noon buying rate of US$ using RMB | 6.5250 | 6.5250 | ||||||||||||||||
Intangible assets, estimated useful lives | 10 years | 10 years | ||||||||||||||||
Goodwill Impairment | $ | $ 0 | $ 0 | $ 0 | |||||||||||||||
Percentage of advertising agency commission | 2.00% | 2.00% | ||||||||||||||||
Equity interest acquired | 100.00% | |||||||||||||||||
Total consideration | ¥ 15,000,000 | |||||||||||||||||
Applicable tax rate of cultural development fee for advertising services revenues | 1.50% | 3.00% | ||||||||||||||||
Advertising and marketing expenses | ¥ 1,728,100,000 | ¥ 2,863,800,000 | ¥ 1,061,000,000 | |||||||||||||||
Costs related to users rewards granted | 1,663,900,000 | 2,708,200,000 | 2,207,800,000 | |||||||||||||||
Rewards redeemed amount | 1,509,300,000 | 2,514,800,000 | 1,973,500,000 | |||||||||||||||
Total estimated breakage amount | 27,800,000 | 36,500,000 | 59,100,000 | |||||||||||||||
Users reward recorded in registered users loyalty payable | 72,600,000 | 134,145,439 | $ 11,130,505 | |||||||||||||||
Estimated users rewards recorded in accrued liabilities related to users loyalty programs | 100,100,000 | 89,184,947 | $ 15,339,129 | |||||||||||||||
Interest and penalties associated with uncertain tax positions | 0 | 0 | ¥ 0 | |||||||||||||||
Unrecognized uncertain tax positions | 0 | ¥ 0 | ||||||||||||||||
Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Share price | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||
Restricted shares granted | shares | 15,937,500 | 15,937,500 | 15,937,500 | 15,937,500 | ||||||||||||||
General and Administrative Expenses | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Share-based compensation expense | 159,300,000 | 82,000,000 | ¥ 906,800,000 | |||||||||||||||
Sales and Marketing Expenses | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Accrued rewards reversed amount | 213,900,000 | 293,500,000 | 196,300,000 | |||||||||||||||
Live Streaming And Online Games [Member] | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Rewards consumed by purchasing virtual items | ¥ 35,800,000 | 18,000,000 | ¥ 0 | |||||||||||||||
Minimum | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Goodwill Impairment Likelihood Percentage | 50.00% | 50.00% | ||||||||||||||||
Short-term borrowings,Interest Rate | 3.00% | 3.00% | ||||||||||||||||
Percentage of after tax net income to be allocated to general reserve under PRC law. | 10.00% | 10.00% | ||||||||||||||||
Minimum | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Shares vesting period | 24 months | 24 months | 24 months | |||||||||||||||
Maximum | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Short-term borrowings,Interest Rate | 4.00% | 4.00% | ||||||||||||||||
Intangible assets, estimated useful lives | 10 years | 10 years | ||||||||||||||||
Percentage of required general reserve registered capital ratio to de force compulsory net profit allocation to general reserve | 50.00% | 50.00% | ||||||||||||||||
Maximum | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Shares vesting period | 34 months | 34 months | 34 months | |||||||||||||||
Pending Litigation [Member] | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Restricted cash | ¥ 64,300,000 | |||||||||||||||||
Ongoing Investigation [Member] | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Restricted cash | ¥ 36,000,000 | |||||||||||||||||
Founders | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Share price | $ / shares | $ 0.0001 | |||||||||||||||||
Restricted shares granted | shares | 15,937,500 | 15,937,500 | 15,937,500 | 15,937,500 | ||||||||||||||
Founders | Minimum | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Shares vesting period | 24 months | |||||||||||||||||
Founders | Maximum | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Shares vesting period | 34 months | |||||||||||||||||
Share Restriction Deeds | Founders | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Restricted shares granted | shares | 15,937,500 | |||||||||||||||||
Share Restriction Deeds | Founders | Minimum | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Shares vesting period | 24 months | |||||||||||||||||
Share Restriction Deeds | Founders | Maximum | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Shares vesting period | 34 months | |||||||||||||||||
Computer Software | Minimum | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Intangible assets, estimated useful lives | 3 years | 3 years | ||||||||||||||||
Computer Software | Maximum | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Intangible assets, estimated useful lives | 10 years | 10 years | ||||||||||||||||
IPO | General and Administrative Expenses | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Share-based compensation expense | ¥ 864,700,000 | |||||||||||||||||
IPO | Share Restriction Deeds | Founders | Restricted shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Vesting of ordinary shares owned by founders | shares | 15,937,500 | 15,937,500 | 15,937,500 | |||||||||||||||
PRC | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Government grants received | ¥ 5,800,000 | ¥ 9,500,000 | ¥ 0 | |||||||||||||||
PRC | Minimum | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Equity interest acquired | 50.00% | 50.00% | ||||||||||||||||
Common Stock [Member] | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Number of shares repurchased | shares | (1,166,425) | (1,166,425) | 1,166,425 | 1,166,425 | ||||||||||||||
American Depositary Shares | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Stock Repurchase Program Authorized Amount | $ | $ 50,000,000 | |||||||||||||||||
Number of shares repurchased | shares | 4,665,700 | 4,665,700 | ||||||||||||||||
American Depositary Shares | IPO | ||||||||||||||||||
Accounting Policies [Line Items] | ||||||||||||||||||
Share price | $ / shares | $ 7 |
Principal Accounting Policies_4
Principal Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - Short-term Investments - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Short-term investments — Wealth management products | ¥ 354,847,029 | ¥ 314,812,946 |
Short-term investments — Equity investment in a publicly traded security | 36,186,345 | |
Level 1 | ||
Assets | ||
Short-term investments — Equity investment in a publicly traded security | 36,186,345 | |
Level 2 | ||
Assets | ||
Short-term investments — Wealth management products | ¥ 354,847,029 | ¥ 314,812,946 |
Principal Accounting Policies_5
Principal Accounting Policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated useful lives | Over the shorter of lease term or estimated useful lives of the assets |
Minimum | Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated useful lives | 3 years |
Maximum | Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated useful lives | 5 years |
Principal Accounting Policies_6
Principal Accounting Policies - Straight-Line Method Over Their Estimated Useful Lives (Details) (Parenthetical) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | ¥ 5,285,195,023 | $ 809,991,575 | ¥ 5,570,080,604 | ¥ 3,022,145,785 |
Advertising Services | ||||
Property, Plant and Equipment [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | ¥ 248,200,000 | ¥ 381,800,000 | ¥ 0 |
Principal Accounting Policies_7
Principal Accounting Policies - Schedule of Disaggregation of Revenue (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | ¥ 5,285,195,023 | $ 809,991,575 | ¥ 5,570,080,604 | ¥ 3,022,145,785 |
Advertising and Marketing Service Provided to Advertising Customers Recorded Gross | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 3,857,233,008 | 591,146,821 | 4,339,602,177 | 2,399,716,518 |
Advertising and Marketing Service Provided to Advertising Platforms Recorded Net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 1,189,601,725 | 182,314,441 | 1,075,718,365 | 414,541,506 |
Agent and Platform Service fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 7,904,057 | 1,211,350 | 33,154,982 | 203,389,356 |
Live Streaming And Online Games | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 193,141,447 | 29,600,222 | 104,445,462 | |
Other Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 37,314,786 | 5,718,741 | 17,159,618 | 4,498,405 |
Total Other services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | ¥ 238,360,290 | $ 36,530,313 | ¥ 154,760,062 | ¥ 207,887,761 |
Significant Equity Transactio_3
Significant Equity Transactions and Acquisitions - Additional Information (Details) | Sep. 23, 2019CNY (¥) | Sep. 23, 2019USD ($)$ / sharesshares | Apr. 05, 2019CNY (¥)shares | Apr. 05, 2019USD ($)$ / sharesshares | Sep. 18, 2018CNY (¥)shares | Sep. 18, 2018USD ($)$ / sharesshares | Sep. 30, 2018USD ($)shares | Feb. 28, 2018CNY (¥) | Dec. 31, 2020shares | Dec. 31, 2019CNY (¥)shares | Sep. 01, 2017shares | Jul. 17, 2017shares |
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Offering price per ADS | $ / shares | $ 10 | |||||||||||
Number of shares issued | 50,000 | |||||||||||
Total offering size value | ¥ | ¥ 152,850,342 | |||||||||||
Proceeds from initial public offering | ¥ 212,100,000 | $ 31,900,000 | ¥ 212,143,573 | |||||||||
Ordinary shares, shares authorized | 50,000 | |||||||||||
Equity interest acquired | 100.00% | |||||||||||
Dianguan | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Equity interest acquired | 100.00% | |||||||||||
Cash consideration | ¥ | ¥ 15,000,000 | |||||||||||
Class A Ordinary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares issued | 42,812,245 | 40,812,245 | ||||||||||
Preferred shares, conversion basis | one-for-one | |||||||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||||||||||
Number of each holder entitled of votes | one | |||||||||||
Class B Ordinary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares issued | 32,937,193 | 32,937,193 | ||||||||||
Ordinary shares, shares authorized | 34,248,442 | 34,248,442 | ||||||||||
Restricted shares vested to founders designated as Class B ordinary share | 15,937,500 | |||||||||||
Number of each holder entitled of votes | ten | |||||||||||
Selling Shareholders | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares offered | 1,668,033 | 1,668,033 | ||||||||||
Selling Shareholders | American Depositary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares offered | 6,672,132 | 6,672,132 | ||||||||||
Initial Public Offering | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Proceeds from initial public offering | ¥ 590,900,000 | $ 85,900,000 | ||||||||||
Initial Public Offering | American Depositary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares issued | 3,450,000 | |||||||||||
Common stock cash consideration | $ | $ 96,600,000 | |||||||||||
Number of shares offered | 13,800,000 | 13,800,000 | 13,800,000 | |||||||||
Common stock, conversion basis | ADSs sold upon the full exercise of the underwriters’ over-allotment option) (every four ADS represents one Class A ordinary share | |||||||||||
Number of ordinary share | 3,450,000 | 3,450,000 | ||||||||||
Share price | $ / shares | $ 7 | |||||||||||
Total offering size value | $ | $ 96,600,000 | |||||||||||
Proceeds from initial public offering | ¥ 590,900,000 | $ 85,900,000 | ||||||||||
Over-Allotment Option | American Depositary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares offered | 1,800,000 | 1,800,000 | 1,800,000 | |||||||||
The Paper | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares issued | 1,480,123 | |||||||||||
Common stock cash consideration | ¥ 144,400,000 | $ 20,408,467 | ||||||||||
Cash consideration price per share | $ / shares | $ 13.79 | |||||||||||
Difference between fair value of shares issued and cash consideration paid | ¥ 8,400,000 | $ 1,201,625 | ||||||||||
Difference between fair value of securities issued and incremental cooperation service fee amortization period | 5 years | 5 years | ||||||||||
Equity interests percentage | 1.00% | |||||||||||
VIE Agreement Terms | The Paper will also carry out the performance of certain strategic cooperation agreements for an annual fee charge to Jifen VIE, for five years. | |||||||||||
The Paper | American Depositary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Cash consideration price per share | $ / shares | $ 3.45 | |||||||||||
Parent Company | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares offered | 831,967 | 831,967 | ||||||||||
Parent Company | American Depositary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares offered | 3,327,868 | 3,327,868 | ||||||||||
Parent Company | Class A Ordinary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares issued | 42,812,245 | 40,812,245 | ||||||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||||||||||
Parent Company | Class B Ordinary Shares | ||||||||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||||||||
Number of shares issued | 32,937,193 | 32,937,193 | ||||||||||
Ordinary shares, shares authorized | 34,248,442 | 34,248,442 |
Significant Equity Transactio_4
Significant Equity Transactions and Acquisitions - Schedule of Fair Value of Consideration Transferred (Details) | 1 Months Ended | |||
Feb. 28, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Goodwill | ¥ 7,268,330 | $ 1,113,920 | ¥ 7,268,330 | |
Dianguan | ||||
Business Acquisition [Line Items] | ||||
Cash | ¥ 15,000,000 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 4,270,175 | |||
Short-term investments | 9,940,000 | |||
Prepayments and other current assets | 30,936,027 | |||
Property and equipment, net | 17,978 | |||
Accounts payable | (364,242) | |||
Salary and welfare payable | (778,438) | |||
Tax payable | (9,933,408) | |||
Advance from advertising customers | (24,664,513) | |||
Accrued liabilities and other current liabilities | (1,691,909) | |||
Total identifiable net assets acquired | 7,731,670 | |||
Goodwill | 7,268,330 | |||
Total purchase consideration | ¥ 15,000,000 |
Risks and Concentration - Addit
Risks and Concentration - Additional Information (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 20, 2020CNY (¥) | Jan. 20, 2020USD ($) | Feb. 28, 2018 | |
Concentration Risk [Line Items] | ||||||
Fine to be paid for lack of license | ¥ 103,200,000 | $ 14.9 | ||||
Equity interest acquired | 100.00% | |||||
Customer Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration of revenues percentage | 0 | 0 | ||||
Total Net Revenue | Customer Concentration Risk | Customer A | ||||||
Concentration Risk [Line Items] | ||||||
Concentration of revenues percentage | 11.00% | |||||
Maximum | Unfavorable Regulatory Action | Internet Audio-Visual Program Transmission License | ||||||
Concentration Risk [Line Items] | ||||||
Fine to be paid for lack of license | ¥ 30,000 | |||||
PRC | Minimum | ||||||
Concentration Risk [Line Items] | ||||||
Equity interest acquired | 50.00% |
Risks and Concentration - Summa
Risks and Concentration - Summary of Customers with Greater than 10% of Accounts Receivables and Amounts Due from Related Parties (Details) - Accounts Receivables - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customer A | Advertising Platform | ||
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 13.00% | 16.00% |
Customer B | Advertising Platform | ||
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 11.00% | |
Customer C | Advertising and Marketing Customer (Related Party – Note 22) | ||
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 23.00% | 28.00% |
Risks and Concentration - Sum_2
Risks and Concentration - Summary of Customers with Greater than 10% of Accounts Receivables and Amounts Due from Related Parties (Parenthetical) (Details) - Accounts Receivables - Customer Concentration Risk - Customer B - Advertising Platform | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 11.00% | |
Maximum | ||
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 10.00% |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedules of Cash and Cash Equivalents (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020IDR (Rp) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019IDR (Rp) | Dec. 31, 2018CNY (¥) |
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | ¥ 494,474,891 | $ 75,781,592 | ¥ 347,817,093 | ¥ 2,186,288,246 | |||
Overseas | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 361,937,179 | Rp 227,348 | $ 223,534,731 | Rp 678,541 | |||
China | Non VIE | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 84,260,552 | $ 35,966,024 | 59,438,015 | 56,358,066 | |||
China | VIE | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | ¥ 12,083,788 | ¥ 7,806,771 | $ 969 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |||
Interest Income, Deposits with Financial Institutions | ¥ 4.1 | ¥ 16 | ¥ 22.2 |
Investments - Summary of Short-
Investments - Summary of Short-Term Investments (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | ¥ 391,033,374 | $ 59,928,486 | ¥ 1,276,830,926 |
Time Deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | 962,017,980 | ||
Wealth Management Products | |||
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | 354,847,029 | ¥ 314,812,946 | |
Publicly Traded Equity Security | |||
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | ¥ 36,186,345 |
Investments - Summary of Long-T
Investments - Summary of Long-Term Investment (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Investments, All Other Investments [Abstract] | |||
Non-marketable equity securities | ¥ 55,299,509 | ¥ 10,000,000 | |
Equity method investments | 27,589,200 | 27,589,200 | |
Total long-term equity investments | ¥ 82,888,709 | $ 12,703,250 | ¥ 37,589,200 |
Investments - Additional Inform
Investments - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Mar. 31, 2020CNY (¥) | Jul. 31, 2019CNY (¥) | |
Investment Company, Financial Highlights [Line Items] | ||||||
Interest income | ¥ 10,418,919 | $ 1,596,769 | ¥ 48,440,468 | ¥ 27,087,009 | ||
Investment Income, Nonoperating | 5,900,000 | 6,300,000 | 4,200,000 | |||
Unrealized Gain (Loss) on Investments | 16,700,000 | |||||
Equity Securities without Readily Determinable Fair Value | 8,000,000 | 10,000,000 | ¥ 3,000,000 | |||
Equity method investment | 27,589,200 | 27,589,200 | ||||
Time Deposits | ||||||
Investment Company, Financial Highlights [Line Items] | ||||||
Interest income | 6,300,000 | ¥ 32,400,000 | ¥ 4,900,000 | |||
Limited Partner [Member] | ||||||
Investment Company, Financial Highlights [Line Items] | ||||||
Unrealized Gain (Loss) on Investments | 54,400,000 | |||||
Equity method investment | 27,600,000 | ¥ 106,000,000 | ||||
Equity Method Investments, Fair Value Disclosure | ¥ 47,300,000 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable, gross – current | ¥ 824,487,072 | ¥ 526,822,932 |
Accounts receivable, gross – non-current | 54,638,516 | |
Less: allowance for credit losses | (86,697,899) | |
Accounts receivable, net | ¥ 792,427,689 | ¥ 526,822,932 |
Accounts Receivable, Net - Add
Accounts Receivable, Net - Additional Information (Details) - Cumulative Effect, Period of Adoption, Adjustment [Member] - CNY (¥) | Jan. 01, 2020 | Dec. 31, 2020 |
Cumulative effect of adoption of accounting | ¥ (6,888,779) | |
Retained Earnings [Member] | ||
Cumulative effect of adoption of accounting | ¥ 6,900,000 | ¥ (6,888,779) |
Prepayments and Other Assets -
Prepayments and Other Assets - Summary of Other Assets (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Prepayment and other current assets | |||
Value-added tax receivable | ¥ 52,411,862 | ¥ 48,451,205 | |
Prepayments of advertisement fee | 23,342,714 | 1,456,410 | |
Deposit to third-party payment service providers | 19,838,590 | 62,240,852 | |
Deposit to third-party advertising platforms | 15,144,830 | 16,821,962 | |
Loans and advance to employees | 11,309,123 | 8,723,553 | |
Lease deposits-current portion | 10,059,017 | 4,647,787 | |
Prepayment for the use of contents | 224,975,224 | 34,361,525 | |
Prepayments of business insurance | 3,131,906 | 3,607,569 | |
Cooperation service fee-current portion (Note 3c) | 1,568,097 | 1,676,555 | |
Prepayments of IT service fee | 419,715 | 1,110,150 | |
Prepayment of office lease | 43,104 | 93,783 | |
Receivable for share option exercises | 22,212,500 | ||
Contract assets | 18,867,925 | ||
Interest receivables | 4,272,559 | ||
Others | 2,864,321 | 6,184,051 | |
Prepayment and other current assets, current | 365,108,503 | $ 55,955,326 | 234,728,386 |
Non-current | |||
Prepayment for intangible assets (Note 21) | 136,133,193 | ||
Long-term cooperation service fee (Note 3c) | 4,266,143 | 6,251,505 | |
Long-term lease deposits | 3,891,804 | 7,944,497 | |
Prepayment for purchase of intangible asset | 3,800,000 | ||
Long-term prepayments of advertisement fee | 6,615,789 | ||
Prepayment and other assets, non-current | ¥ 148,091,140 | ¥ 20,811,791 |
Prepayments and Other Assets _2
Prepayments and Other Assets - Summary of Other Assets (Parenthetical) (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Prepayments And Other Assets [Line Items] | ||
Loans to employees to meet personal needs for period | 1 year | |
Prepaid Content Fee | ¥ 220,600,000 | |
Nonmonetary Transaction, Gross Operating Revenue Recognized | ¥ 40,000,000 | |
Allowance for doubtful accounts | 86,697,899 | |
Non-Monetary Contracts With Third Party Television Content Provider | ||
Prepayments And Other Assets [Line Items] | ||
Contract asset | 40,000,000 | |
Contract liability | 40,000,000 | |
Third Party Media Companies And Freelancers | ||
Prepayments And Other Assets [Line Items] | ||
Allowance for doubtful accounts | 0 | 0 |
Sales and Marketing Expenses | Non-Monetary Contracts With Third Party Television Content Provider | ||
Prepayments And Other Assets [Line Items] | ||
Amortization of contract asset | ¥ 18,900,000 | ¥ 21,100,000 |
Minimum | ||
Prepayments And Other Assets [Line Items] | ||
Use of content period of use | 6 months | |
Maximum | ||
Prepayments And Other Assets [Line Items] | ||
Use of content period of use | 12 months |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Cost: | |||
Total cost | ¥ 42,210,301 | ¥ 38,778,559 | |
Less: Accumulated depreciation | (24,997,502) | (14,663,185) | |
Property and equipment, net | 17,212,799 | $ 2,637,977 | 24,115,374 |
Office Equipment | |||
Cost: | |||
Total cost | 24,261,802 | 26,203,041 | |
Leasehold Improvements | |||
Cost: | |||
Total cost | ¥ 17,948,499 | ¥ 12,575,518 |
Property and Equipment, Net -_2
Property and Equipment, Net - Summary of Depreciation Expense (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | ¥ 12,143,925 | ¥ 10,003,655 | ¥ 4,291,284 |
Cost of Revenues | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 3,463,304 | 3,182,644 | 156,725 |
Research and Development Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 6,653,321 | 5,075,929 | 3,238,987 |
Sales and Marketing Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 973,899 | 959,610 | 417,934 |
General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | ¥ 1,053,401 | ¥ 785,472 | ¥ 477,638 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Total cost | ¥ 108,306,099 | ¥ 101,101,071 |
Less: Accumulated amortization | (25,183,127) | (12,157,392) |
Intangible assets, net | 83,122,972 | 88,943,679 |
Online Audio/Video Content Platform | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | 96,129,761 | 96,129,761 |
Computer Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | ¥ 12,176,338 | ¥ 4,971,310 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Finite Lived Intangible Assets [Line Items] | ||||
Percentage of equity interest acquired | 100.00% | |||
Total cash considerations | ¥ 15,000,000 | |||
Deferred tax liability, intangible assets | ¥ 18,825,416 | $ 2,885,121 | ¥ 21,228,656 | |
Intangible assets, estimated useful lives | 10 years | |||
Acquired right to operate an online audio/video content platform with amount | ¥ 108,306,099 | 101,101,071 | ||
Online Audio/Video Content Platform | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Percentage of equity interest acquired | 100.00% | 100.00% | ||
Total cash considerations | ¥ 72,100,000 | |||
Deferred tax liability, intangible assets | ¥ 24,000,000 | |||
Intangible assets, estimated useful lives | 10 years | |||
Acquired right to operate an online audio/video content platform with amount | ¥ 96,129,761 | ¥ 96,129,761 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Amortization Expense (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | ¥ 13,025,735 | $ 1,996,281 | ¥ 10,555,229 | ¥ 1,602,163 |
Cost of Revenues | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | 9,612,976 | 9,612,976 | 1,602,163 | |
General and Administrative Expenses | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | ¥ 3,412,759 | ¥ 942,253 | ¥ 0 |
Intangible Assets, Net - Summ_2
Intangible Assets, Net - Summary Of Future Intangible Asset Amortization (Detail) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2021 | ¥ 13,562,123 | |
2022 | 12,635,179 | |
2023 | 10,399,789 | |
2024 | 9,637,359 | |
2025 | 9,637,359 | |
Thereafter | 27,251,163 | |
Intangible assets, net | ¥ 83,122,972 | ¥ 88,943,679 |
Leases - Schedule of components
Leases - Schedule of components of lease expenses (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Abstract] | ||
Amortization of right-of-use assets | ¥ 39,371,454 | ¥ 39,693,063 |
Interest of lease liabilities | 1,833,789 | 3,820,727 |
Expenses for short-term leases within 12 months | 6,093,217 | 423,271 |
Total lease cost | ¥ 47,298,460 | ¥ 43,937,061 |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Cash Flow information Related To Leases (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating lease payments | ¥ 39,073,120 | ¥ 45,584,621 |
Right-of-use assets obtained in exchange for lease obligations: | ¥ 20,448,582 | ¥ 55,834,552 |
Leases - Schedule Of Suppleme_2
Leases - Schedule Of Supplemental BaIance Sheet information Related To Leases (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Operating leases | |||
Operating lease right-of-use assets | ¥ 50,318,882 | $ 7,711,706 | ¥ 69,241,754 |
Operating lease liabilities, current | (20,760,421) | (3,181,674) | (38,210,188) |
Operating lease liabilities, non-current | (23,755,721) | $ (3,640,724) | (26,651,446) |
Total operating lease liabilities | ¥ (44,516,142) | ¥ (64,861,634) | |
Weighted-average remaining lease term | |||
Operating leases | 2 years 6 months | 2 years 6 months | 2 years 2 months 12 days |
Weighted-average discount rate | |||
Operating leases | 5.70% | 5.70% | 5.70% |
Leases - Summary of maturities
Leases - Summary of maturities of lease liabilities (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
2021 | ¥ 22,591,187 | |
2022 | 11,815,301 | |
2023 | 8,942,549 | |
2024 and thereafter | 4,460,436 | |
Total undiscounted lease payments | 47,809,473 | |
Less: imputed interest | (3,293,331) | |
Total lease liabilities | ¥ 44,516,142 | ¥ 64,861,634 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments under Non-cancellable Operating Leases for Office Rental (Details) | Dec. 31, 2020CNY (¥) |
Leases [Abstract] | |
2021 | ¥ 29,679,352 |
2022 | 19,570,885 |
2023 | 10,179,846 |
2024 and thereafter | 5,089,923 |
Total | ¥ 64,520,006 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Discount rate | 5.70% | 5.70% |
Tax Payable - Schedule of Tax P
Tax Payable - Schedule of Tax Payable (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Tax Payable [Abstract] | |||
Value added tax | ¥ 73,804,596 | ¥ 91,894,179 | |
Corporate income tax | 5,374,231 | 7,246,119 | |
Individual income tax withholding | 16,516,542 | 17,821,617 | |
Urban maintenance and construction tax | 712,407 | 697,134 | |
Stamp duty | 735,809 | 497,445 | |
Total | ¥ 97,143,585 | $ 14,887,906 | ¥ 118,156,494 |
Tax Payable - Additional Inform
Tax Payable - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Tax Payable [Abstract] | |
Value added tax rate | 6.00% |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accrued liabilities and other current liabilities | |||
Accrued advertising and marketing expense | ¥ 610,330,541 | ¥ 624,684,280 | |
Tax surcharges and other fees | 134,174,460 | 134,003,155 | |
Accrued professional service fees | 4,381,461 | 4,695,155 | |
Accrued convertible redeemable preferred shares issuance cost of a subsidiary | 3,135,298 | 435,000 | |
Refund from depositary bank | 2,469,655 | 2,640,471 | |
Payables to employees related to net proceeds from share options exercised | 0 | 18,439,722 | |
Accrued employee welfare expense | 0 | 1,547,431 | |
Others | 8,942,857 | 2,050,228 | |
Total | 763,434,272 | $ 117,001,418 | 788,495,442 |
Non-current | |||
Non-refundable incentive payment from depositary bank | 4,255,931 | 7,212,463 | |
Total | ¥ 767,690,203 | ¥ 795,707,905 |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Parenthetical) (Details) ¥ in Millions, $ in Millions | Jul. 01, 2019 | Sep. 30, 2018USD ($) | Sep. 30, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Jun. 30, 2019 | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Payables And Accruals [Abstract] | ||||||||
Applicable tax rate of cultural development fee for advertising services revenues | 1.50% | 3.00% | ||||||
Reduction in general and administrative expenses | $ 0.6 | ¥ 4.1 | ¥ 2.6 | ¥ 2.6 | ||||
Non-refundable incentive payment received from depositary bank | $ 1.8 | ¥ 12.5 | ||||||
Amount recorded ratably as other income, arrangement period | 5 years |
Convertible Loan - Additional I
Convertible Loan - Additional Information (Details) | Oct. 31, 2019 | Apr. 04, 2019CNY (¥) | Mar. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Apr. 04, 2019USD ($)$ / shares |
Aggregate principal amount of convertible loan | ¥ 13,000,000 | ||||||
Cash received from Convertible loan | $ 1,174,900,000 | ¥ 1,174,616,692 | |||||
Convertible Loan Agreement | Alibaba Investment Limited | |||||||
Aggregate principal amount of convertible loan | ¥ 1,147,000,000 | $ 171,100,000 | |||||
Conversion price per share | $ / shares | $ 60 | ||||||
Convertible loan interest rate per anum | 3.00% | 3.00% | |||||
Convertible loan mature period | 3 years | ||||||
Accrued interest | 58,800,000 | ||||||
Additional consideration exchanged in return for two conversion date extensions | $ | $ 0 | ||||||
Cash received from Convertible loan | 1,147,000,000 | $ 171,100,000 | |||||
Convertible loan maturity date | Apr. 4, 2022 | ||||||
Debt Instrument Accrued Interest | ¥ 36,800,000 | ¥ 26,900,000 | |||||
Convertible Loan Agreement | Alibaba Investment Limited | Class A Ordinary Shares | |||||||
Number of calendar days for convertible loan convertible into ordinary shares | 240 days | ||||||
Number of calendar days for convertible loan pursuant to supplemental agreement | 422 days | 605 days | |||||
Convertible Loan Agreement | Alibaba Investment Limited | American Depositary Shares | |||||||
Conversion price per share | $ / shares | $ 15 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Shares - Additional Information (Details) | Apr. 05, 2019CNY (¥) | Apr. 05, 2019USD ($) | Sep. 18, 2018CNY (¥) | Sep. 18, 2018USD ($) | Sep. 11, 2018CNY (¥)shares | Sep. 11, 2018USD ($)shares | Sep. 10, 2018CNY (¥) | Sep. 04, 2018CNY (¥) | Sep. 04, 2018USD ($)$ / sharesshares | Apr. 27, 2018USD ($)$ / sharesshares | Mar. 08, 2018USD ($)$ / sharesshares | Mar. 04, 2018USD ($)$ / sharesshares | Nov. 14, 2017USD ($)$ / sharesshares | Sep. 29, 2017USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Aug. 27, 2018shares | Mar. 31, 2018$ / shares |
Class Of Stock [Line Items] | ||||||||||||||||||||
Fair value per share | $ 23.62 | |||||||||||||||||||
Gross proceeds from public offering | ¥ 212,100,000 | $ 31,900,000 | ¥ 212,143,573 | |||||||||||||||||
Incentive Carrying value | ¥ | ¥ 0 | |||||||||||||||||||
Initial Public Offering | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Gross proceeds from public offering | ¥ 590,900,000 | $ 85,900,000 | ||||||||||||||||||
Minimum | Public Offering takes Place Within 5 Years of Series B1 Closing | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Money valuation of public offering | $ | $ 5,000,000,000 | |||||||||||||||||||
Gross proceeds from public offering | $ | 500,000,000 | |||||||||||||||||||
Minimum | Public Offering takes Place Within Year 2018 | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Money valuation of public offering | $ | 3,000,000,000 | |||||||||||||||||||
Gross proceeds from public offering | $ | $ 300,000,000 | |||||||||||||||||||
Maximum | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Period to complete qualified public offering | 5 years | |||||||||||||||||||
Series A Convertible Redeemable Preferred Shares | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 4,945,055 | |||||||||||||||||||
Preferred stock, per share purchase price | $ 6.5520 | |||||||||||||||||||
Preferred stock, cash | $ 32,400,000 | ¥ 27,357,503 | ¥ 97,147,400 | |||||||||||||||||
Series A1 Convertible Redeemable Preferred Shares | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 1,373,626 | |||||||||||||||||||
Preferred stock, per share purchase price | $ 7.2800 | |||||||||||||||||||
Preferred stock, cash | $ | $ 10,000,000 | |||||||||||||||||||
Redeemable convertible preferred shares period after closing | 6 years | |||||||||||||||||||
Series B1 Convertible Redeemable Preferred Shares | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 5,420,144 | |||||||||||||||||||
Preferred stock, per share purchase price | $ 19.3722 | |||||||||||||||||||
Preferred stock, cash | $ 105,000,000 | 651,736,522 | ||||||||||||||||||
Fair value per share | $ 22.46 | |||||||||||||||||||
Shares issued price per share | $ 19.37 | |||||||||||||||||||
Percentage of discount compared with fair value | 18.00% | |||||||||||||||||||
Series B1 Convertible Redeemable Preferred Shares | Initial Public Offering | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Offering period | 5 years | |||||||||||||||||||
Series B2 Convertible Redeemable Preferred Shares | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 3,895,728 | |||||||||||||||||||
Preferred stock, per share purchase price | $ 23.6156 | |||||||||||||||||||
Preferred stock, cash | $ 92,000,000 | 569,316,830 | ||||||||||||||||||
Fair value per share | $ 23.62 | |||||||||||||||||||
Series B3 Convertible Redeemable Preferred Shares | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 1,751,539 | |||||||||||||||||||
Preferred stock, per share purchase price | $ 25.9772 | |||||||||||||||||||
Preferred stock, cash | $ 45,500,000 | 282,249,969 | ||||||||||||||||||
Series C1 Convertible Redeemable Preferred Shares | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 1,450,520 | 1,450,520 | 1,450,520 | |||||||||||||||||
Preferred stock, cash | ¥ | ¥ 104,947,585 | |||||||||||||||||||
Preferred stock, per share purchase price | $ 34.47 | |||||||||||||||||||
Total consideration | $ | $ 50,000,000 | |||||||||||||||||||
Series C1 Convertible Redeemable Preferred Shares | Series C1 Investor A | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 290,104 | 290,104 | ||||||||||||||||||
Fair value per share | $ 36.78 | |||||||||||||||||||
Cash consideration price per share | $ 34.47 | |||||||||||||||||||
Upfront incentive payment | ¥ 22,800,000 | $ 3,350,000 | ||||||||||||||||||
Gain on difference between excess of fair value over carrying value of preferred share | ¥ 18,300,000 | $ 2,680,000 | ||||||||||||||||||
Series C1 Convertible Redeemable Preferred Shares | Series C1 Investor B | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 145,052 | |||||||||||||||||||
Preferred stock, per share purchase price | $ 37.2280 | |||||||||||||||||||
Total consideration | $ | $ 5,400,000 | |||||||||||||||||||
Series A Shares and Series A1 Shares | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred shares, dividend rate percentage | 12.00% | 12.00% | 8.00% | |||||||||||||||||
Deemed dividend preferred shares | ¥ | ¥ 1,916,871 | |||||||||||||||||||
Series A Shares and Series A1 Shares | Minimum | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, liquidation preference percentage | 100.00% | |||||||||||||||||||
Series A Shares and Series A1 Shares | Maximum | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, liquidation preference percentage | 120.00% | |||||||||||||||||||
Series C2 Shares | Share Subscription Agreement | ||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||
Preferred stock, shares issued | shares | 1,480,123 |
Ordinary Share - Additional Inf
Ordinary Share - Additional Information (Details) | Apr. 05, 2019CNY (¥) | Apr. 05, 2019USD ($) | Sep. 18, 2018CNY (¥)shares | Sep. 18, 2018USD ($)$ / sharesshares | Jan. 03, 2018CNY (¥) | Jan. 03, 2018USD ($) | Sep. 01, 2017USD ($)shares | Sep. 30, 2018CNY (¥)shares | Sep. 30, 2018USD ($)$ / sharesshares | Jan. 31, 2018$ / sharesshares | Mar. 31, 2018CNY (¥) | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018$ / sharesshares | Dec. 31, 2019$ / sharesshares | Mar. 31, 2018$ / shares | Feb. 28, 2018shares | Jul. 17, 2017USD ($)$ / sharesshares |
Class Of Stock [Line Items] | ||||||||||||||||||
Ordinary shares, authorized amount | $ | $ 50,000 | $ 50,000 | ||||||||||||||||
Ordinary shares, shares authorized | 50,000 | |||||||||||||||||
Ordinary shares, par value | $ / shares | $ 1 | |||||||||||||||||
Ordinary shares, shares, issued | 50,000 | |||||||||||||||||
Ordinary shares, subdivided into multiple shares | 500,000,000 | |||||||||||||||||
Fair value per share | $ / shares | $ 23.62 | |||||||||||||||||
Share-based compensation expense | ¥ | ¥ 1,400,000 | |||||||||||||||||
Proceeds from follow-on offering, net of issuance costs | ¥ 212,100,000 | $ 31,900,000 | ¥ 212,143,573 | |||||||||||||||
Initial Public Offering | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Proceeds from follow-on offering, net of issuance costs | ¥ 590,900,000 | $ 85,900,000 | ||||||||||||||||
Founders | 2017 Plan | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Ordinary shares, shares, issued | 10,000,000 | |||||||||||||||||
Exercised and issued from treasury shares | 1,144,786 | |||||||||||||||||
Restricted shares | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares option granted | 15,937,500 | 15,937,500 | 15,937,500 | 15,937,500 | ||||||||||||||
Share price | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||
Restricted shares | Minimum | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares vesting period | 24 months | 24 months | ||||||||||||||||
Restricted shares | Maximum | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares vesting period | 34 months | 34 months | ||||||||||||||||
Restricted shares | Founders | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares option granted | 15,937,500 | 15,937,500 | 15,937,500 | 15,937,500 | ||||||||||||||
Share price | $ / shares | $ 0.0001 | |||||||||||||||||
Share-based compensation expense | ¥ 215,000,000 | $ 33,100,000 | ¥ 649,700,000 | $ 95,000,000 | ||||||||||||||
Restricted shares | Founders | Minimum | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares vesting period | 24 months | 24 months | ||||||||||||||||
Restricted shares | Founders | Maximum | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares vesting period | 34 months | 34 months | ||||||||||||||||
Restricted shares | Founders | Share Restriction Deeds | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares option granted | 15,937,500 | 15,937,500 | ||||||||||||||||
Restricted shares | Founders | Share Restriction Deeds | Minimum | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares vesting period | 24 months | |||||||||||||||||
Restricted shares | Founders | Share Restriction Deeds | Maximum | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Shares vesting period | 34 months | |||||||||||||||||
Restricted shares | Founders | Share Restriction Deeds | Initial Public Offering | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Vesting of ordinary shares owned by founders | 15,937,500 | 15,937,500 | 15,937,500 | |||||||||||||||
American Depositary Shares | Initial Public Offering | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Ordinary shares, shares, issued | 3,450,000 | |||||||||||||||||
Share price | $ / shares | $ 7 | |||||||||||||||||
Number of shares offered | 13,800,000 | 13,800,000 | 13,800,000 | 13,800,000 | ||||||||||||||
Proceeds from issuance of ordinary shares upon Initial Public Offering and over-allotment option, net of cost of issuance | $ | $ 96,600,000 | |||||||||||||||||
Shares issued price per share | $ / shares | $ 7 | |||||||||||||||||
Proceeds from follow-on offering, net of issuance costs | ¥ 590,900,000 | $ 85,900,000 | ||||||||||||||||
American Depositary Shares | Over-Allotment Option | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Number of shares offered | 1,800,000 | 1,800,000 | 1,800,000 | 1,800,000 | ||||||||||||||
Class A Ordinary Shares | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Number of each holder entitled of votes | one | |||||||||||||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||||||||||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||
Ordinary shares, shares, issued | 42,812,245 | 40,812,245 | ||||||||||||||||
Converted and designated as ordinary shares | 1 | |||||||||||||||||
Class B Ordinary Shares | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Number of each holder entitled of votes | ten | |||||||||||||||||
Ordinary shares, shares authorized | 34,248,442 | 34,248,442 | ||||||||||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||
Ordinary shares, shares, issued | 32,937,193 | 32,937,193 | ||||||||||||||||
Converted and designated as ordinary shares | 1 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, $ in Millions | Jan. 03, 2018CNY (¥)shares | Jan. 03, 2018USD ($)shares | Jan. 31, 2019Plan | Sep. 30, 2018CNY (¥)shares | Sep. 30, 2018USD ($)shares | Jan. 31, 2018$ / sharesshares | Mar. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2020CNY (¥)$ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2016shares | Dec. 31, 2018$ / shares | Feb. 28, 2018shares | Sep. 01, 2017shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Intrinsic value of options exercised | ¥ 265,200,000 | ¥ 428,300,000 | |||||||||||||
Ordinary shares, shares, issued | shares | 50,000 | ||||||||||||||
Share-based compensation expense measured at fair value | ¥ 0 | ¥ 7,500,000 | |||||||||||||
Share-based compensation expense | ¥ 1,400,000 | ||||||||||||||
Restricted shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Share price | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||
Shares option granted | shares | 15,937,500 | 15,937,500 | 15,937,500 | 15,937,500 | |||||||||||
Minimum | Restricted shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Shares vesting period | 24 months | 24 months | |||||||||||||
Maximum | Restricted shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Shares vesting period | 34 months | 34 months | |||||||||||||
Founders | Restricted shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Number of restricted shares held | shares | 15,937,500 | 15,937,500 | |||||||||||||
Share price | $ / shares | $ 0.0001 | ||||||||||||||
Shares option granted | shares | 15,937,500 | 15,937,500 | 15,937,500 | 15,937,500 | |||||||||||
Shares option granted, fair value | ¥ 864,700,000 | $ 128.1 | |||||||||||||
Share-based compensation expense | ¥ 215,000,000 | $ 33.1 | ¥ 649,700,000 | $ 95 | |||||||||||
Founders | Minimum | Restricted shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Shares vesting period | 24 months | 24 months | |||||||||||||
Founders | Maximum | Restricted shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Shares vesting period | 34 months | 34 months | |||||||||||||
Share Option Plan | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Estimated fair value of underlying shares | (per share) | ¥ 41.50 | $ 6.4 | ¥ 95.20 | ¥ 159.29 | |||||||||||
Fair value of share options vested | ¥ 346,500,000 | ¥ 326,500,000 | ¥ 17,000,000 | ||||||||||||
Unrecognized share-based compensation expense | 417,000,000 | $ 417,000,000 | |||||||||||||
Share Option Plan | Companies under Common Control of Founder | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Dividends distributed | ¥ 0 | 0 | 6,800,000 | ||||||||||||
Share Option Plan | Jifen | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Incentive awards issuance, percentage of equity interests | 20.00% | ||||||||||||||
Shares issuable under the incentive awards | shares | 10,000,000 | ||||||||||||||
Incentive awards issuance, stock split conversion ratio | 0.2 | ||||||||||||||
Incentive awards issuance terms | As part of the restructuring in 2017, in February 2018, the Board of Directors of the Company approved the 2017 Equity Incentive Plan, which assumed Jifen’s obligations and duties under the options granted by Jifen from 2016 to 2017. As a result, the options granted by Jifen were replaced with options of the Company. This replacement represents a modification of the awards under the accounting guidance, but no incremental compensation cost is required to be recognized because there was no change in fair value of the awards as measured immediately before and after the modification. | ||||||||||||||
Share Option Plan | Employees | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Share-based compensation expense | ¥ 463,200,000 | ¥ 272,000,000 | ¥ 77,300,000 | ||||||||||||
Equity Incentive Plan 2018 | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Ordinary shares, shares, issued | shares | 2,964,141 | ||||||||||||||
Equity Incentive Plan 2019 | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Number of plans | Plan | 2 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Share Option Activity (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | ||||
Number of options, Outstanding beginning balance | 11,346,381 | 12,175,583 | 10,000,000 | |
Number of options granted | 2,607,249 | 3,538,204 | 2,893,020 | |
Number of options, Exercised | (3,144,786) | (2,197,104) | (500,000) | |
Number of options, Forfeited | (1,378,694) | (2,170,302) | (217,437) | |
Number of options, Outstanding ending balance | 9,430,150 | 11,346,381 | 12,175,583 | 10,000,000 |
Number of options, Vested and expected to vest | 8,785,149 | |||
Number of options, Exercisable | 6,615,731 | |||
Weighted Average Exercise Price, Outstanding beginning balance | ¥ 0.0007 | ¥ 0.0007 | ¥ 0.0007 | |
Weighted Average Exercise Price, Granted | 0.0007 | 0.0007 | 0.0007 | |
Weighted Average Exercise Price, Exercised | 0.0007 | 0.0007 | 0.0007 | |
Weighted Average Exercise Price, Forfeited | 0.0007 | 0.0007 | 0.0007 | |
Weighted Average Exercise Price, Outstanding ending balance | 0.0007 | ¥ 0.0007 | ¥ 0.0007 | ¥ 0.0007 |
Weighted Average Exercise Price, Vested and expected to vest | 0.0007 | |||
Weighted Average Exercise Price, Exercisable | ¥ 0.0007 | |||
Weighted Average Remaining Contractual Life, Outstanding | 7 years 2 months 12 days | 7 years 8 months 12 days | 8 years 1 month 6 days | 8 years 8 months 12 days |
Weighted Average Remaining Contractual Life, Vested and expected to vest | 7 years 1 month 6 days | |||
Weighted Average Remaining Contractual Life, Exercisable | 6 years 7 months 6 days | |||
Aggregate Intrinsic Value, Outstanding beginning balance | ¥ 1,079,661 | ¥ 1,939,500 | ¥ 525,086 | |
Aggregate Intrinsic Value, Outstanding ending balance | 391,330 | ¥ 1,079,661 | ¥ 1,939,500 | ¥ 525,086 |
Aggregate Intrinsic Value, Vested and expected to vest | 364,564 | |||
Aggregate Intrinsic Value, Exercisable | ¥ 274,538 | |||
Weighted Average Grant Date Fair Value, Outstanding beginning balance | ¥ 96.29 | ¥ 33.95 | ¥ 3.89 | |
Weighted Average Grant Date Fair Value, Granted | 104.85 | 270.11 | 130.51 | |
Weighted Average Grant Date Fair Value, Outstanding ending balance | ¥ 78.35 | ¥ 96.29 | ¥ 33.95 | ¥ 3.89 |
Weighted Average Grant Date Fair Value, Vested and expected to vest | 70.68 | |||
Weighted Average Grant Date Fair Value, Exercisable | 48.66 |
Share-based Compensation - Fair
Share-based Compensation - Fair Values of Share Options Granted (Details) - Share Options | 12 Months Ended | ||
Dec. 31, 2020Multiple¥ / shares | Dec. 31, 2019Multiple¥ / shares | Dec. 31, 2018Multiple¥ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility, Minimum | 57.77% | 49.92% | 50.71% |
Expected volatility, Maximum | 58.65% | 50.65% | 51.25% |
Risk-free interest rate, Minimum | 0.82% | 1.80% | 2.83% |
Risk-free interest rate, Maximum | 1.09% | 2.52% | 3.15% |
Exercise multiple | Multiple | 2.8 | 2.8 | 2.8 |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Contractual term | 10 years | 10 years | 10 years |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected forfeiture rate (post-vesting) | 0.00% | 0.00% | 0.00% |
Share price | ¥ 41.50 | ¥ 94.96 | ¥ 122.52 |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected forfeiture rate (post-vesting) | 20.00% | 20.00% | 20.00% |
Share price | ¥ 77.78 | ¥ 310.64 | ¥ 153.23 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Amount incurred for employee benefits | ¥ 97.1 | ¥ 144.7 | ¥ 58.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2020HKD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | |
Income Tax [Line Items] | ||||
Income tax rate | 25.00% | 25.00% | 25.00% | |
Deferred tax liability, intangible assets | ¥ 21,228,656 | ¥ 18,825,416 | ||
Intangible assets, amortization period | 10 years | |||
Tax loss carryforwards | 542,743,772 | 588,547,586 | ||
Valuation allowances | 985,439,953 | 1,056,253,343 | ||
Online Audio/Video Content Platform | ||||
Income Tax [Line Items] | ||||
Deferred tax liability, intangible assets | 18,800,000 | |||
Intangible assets, amortization period | 10 years | |||
PRC | ||||
Income Tax [Line Items] | ||||
Income tax rate | 25.00% | |||
Withholding income tax rate for dividends distributed | 10.00% | |||
Withholding income tax rate for dividends declared to holding company | 5.00% | |||
Withholding income tax rate on dividends for Hong Kong holding company which recognized as beneficial owner | 25.00% | |||
Income taxes preferential tax rate review period | 3 years | |||
Income taxes preferential tax rate | 15.00% | |||
Tax loss carryforwards | ¥ 2,372,100,000 | ¥ 675,500,000 | ¥ 2,409,400,000 | |
PRC | Enterprise Income Tax Law | ||||
Income Tax [Line Items] | ||||
Income tax rate | 25.00% | |||
Profit Upto HK$2.0 Million | Hong Kong | ||||
Income Tax [Line Items] | ||||
Income tax rate | 8.25% | |||
Profit After HK$2.0 Million | Hong Kong | ||||
Income Tax [Line Items] | ||||
Income tax rate | 16.50% | |||
Maximum | ||||
Income Tax [Line Items] | ||||
Intangible assets, amortization period | 10 years | |||
Maximum | Profit Upto HK$2.0 Million | Hong Kong | ||||
Income Tax [Line Items] | ||||
Taxable profit amount | $ | $ 2,000,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
PRC Statutory income tax rates | 25.00% | 25.00% | 25.00% |
Change in valuation allowance | (13.90%) | (23.20%) | (15.30%) |
Permanent book — tax difference | (9.20%) | (2.00%) | (9.90%) |
Difference in EIT rates of certain subsidiaries | (2.20%) | 0.00% | 0.20% |
Total | (0.30%) | (0.20%) | 0.00% |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Tax Expenses (Benefit) for Domestic and Foreign (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | ¥ 558,656,558 | ¥ 2,404,676,422 | ¥ 998,299,456 |
Foreign | 547,517,245 | 279,748,549 | 947,947,297 |
Total | ¥ 1,106,173,803 | ¥ 2,684,424,971 | ¥ 1,946,246,753 |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Portions of Income Tax Expense (Benefit) (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ 1,395,870 | ¥ 7,246,119 | ||
Deferred income tax benefit | (2,403,240) | $ (368,313) | (2,403,243) | ¥ (400,541) |
Income tax expense (benefit) | ¥ (1,007,370) | $ (154,386) | ¥ 4,842,876 | ¥ (400,541) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Deductible temporary difference to accruals and others | ¥ 467,705,757 | ¥ 442,696,181 |
Tax losses carried forward | 588,547,586 | 542,743,772 |
Less: Valuation allowance | (1,056,253,343) | (985,439,953) |
Total of deferred tax assets | 0 | 0 |
Taxable temporary difference related to acquired right to operate an online audio/video content platform | 18,825,416 | 21,228,656 |
Total of deferred tax liabilities | ¥ 18,825,416 | ¥ 21,228,656 |
Income Taxes - Schedule of Move
Income Taxes - Schedule of Movement of Valuation Allowance (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | ¥ 985,439,953 | ¥ 326,336,233 | ¥ 27,776,443 |
Current year additions | 100,629,055 | 665,361,186 | 298,559,790 |
Current year reversals | (29,815,665) | (6,257,466) | |
Ending balance | ¥ 1,056,253,343 | ¥ 985,439,953 | ¥ 326,336,233 |
Other Operating Income - Additi
Other Operating Income - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other income (expense), net | ||
Super deduction of input VAT | ¥ 48.7 | ¥ 30.3 |
Input Vat Additional Credit Admissible Percentage | 10.00% | |
Other Operating Income (Expense) | ||
Other income (expense), net | ||
Value Added Tax Income | ¥ 30.6 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests and Noncontrolling Interests - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019USD ($)$ / sharesshares | Mar. 31, 2019CNY (¥)shares | Nov. 30, 2018CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Jan. 20, 2020CNY (¥) | Mar. 31, 2019USD ($)$ / sharesshares | Nov. 30, 2018USD ($)$ / sharesshares | May 31, 2018 | Sep. 29, 2017shares | |
Minority Interest [Line Items] | ||||||||||||
Cash | ¥ 360,600,000 | $ 55,000,000 | ¥ 18,500,000 | |||||||||
Preferred stock redemption discount of subsidiary | 14,841,680 | $ 2,274,587 | ||||||||||
Overseas Subsidiary | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Ownership of subsidiaries | 62.23% | |||||||||||
Equity interests percentage | 37.77% | |||||||||||
Series A Convertible Redeemable Preferred Shares | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Mezzanine equity, shares issued | 4,945,055 | |||||||||||
Series B Convertible Redeemable Preferred Shares | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Preferred stock cash consideration | 135,400,000 | 20,000,000 | ||||||||||
Issuance Costs | 435,000 | $ 66,667 | ||||||||||
Preferred stock redemption discount of subsidiary | ¥ | 14,841,680 | |||||||||||
Developed Technology Rights | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Finite lived Intangible Assets Acquired | ¥ | ¥ 9,000,000 | |||||||||||
Acquired Finite Lived Intangible Assets Useful Life | 5 years | 5 years | ||||||||||
User Data | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Finite lived Intangible Assets Acquired | ¥ | ¥ 127,100,000 | |||||||||||
Acquired Finite Lived Intangible Assets Useful Life | 3 years | 3 years | ||||||||||
Fun Literature | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Purchase shares from holders | 5 years | 5 years | ||||||||||
Redemption days | 60 days | 60 days | ||||||||||
Annual compound interest rate | 10.00% | 10.00% | ||||||||||
Fun Literature | Series A Convertible Redeemable Preferred Shares | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Simple interest on put option | 4.00% | |||||||||||
Extended redemption period | 5 years | 5 years | ||||||||||
Mezzanine equity, shares issued | 1,097,212 | 3,763,440 | 1,097,212 | 3,763,440 | ||||||||
Preferred stock, per share purchase price | $ / shares | $ 3.72 | $ 3.72 | ||||||||||
Mezzanine equity, aggregate amount of redemption | ¥ 27,500,000 | ¥ 97,100,000 | $ 4,000,000 | $ 14,000,000 | ||||||||
Preferred shares converted basics on issued | 9.00% | 7.00% | ||||||||||
Preferred shares converted basics on outstanding | 91.00% | 93.00% | ||||||||||
Conversion Ratio | 1 | 1 | ||||||||||
Fun Literature | Series C Convertible Redeemable Preferred Shares | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Share price | $ / shares | $ 4.092 | |||||||||||
Preferred stock cash consideration | ¥ 733,200,000 | $ 111,800,000 | ||||||||||
Issuance Costs | ¥ 3,100,000 | 500,000 | ||||||||||
Fun Literature | Series C Convertible Redeemable Preferred Shares | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Number of preferred shares issued | 9,776,007 | 9,776,007 | ||||||||||
Fun Literature | Series C Convertible Redeemable Preferred Shares | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Number of preferred shares issued | 17,676,002 | 17,676,002 | ||||||||||
Fun Literature | Series B Convertible Redeemable Preferred Shares | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Number of preferred shares issued | 8,794,903 | |||||||||||
Share price | $ / shares | $ 5.69 | |||||||||||
Preferred stock cash consideration | $ | $ 50,000,000 | |||||||||||
Simple interest on put option | 4.00% | |||||||||||
Mezzanine equity, shares issued | 2,814,305 | 2,814,305 | ||||||||||
Fun Literature | Developed Technology Rights | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Finite lived Intangible Assets Acquired | ¥ 136,100,000 | 20,800,000 | ||||||||||
Fun Literature | Content | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Finite lived Intangible Assets Acquired | ¥ 240,000,000 | $ 36,600,000 | ||||||||||
Fun Literature | CMC Capital | Series B Convertible Redeemable Preferred Shares | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Number of preferred shares issued | 8,794,903 | |||||||||||
Share price | $ / shares | $ 5.69 | |||||||||||
Preferred stock cash consideration | $ | $ 50,000,000 | |||||||||||
Stock Transferred During Period Value | $ | $ 20,000,000 | |||||||||||
Stock Transferred During Period Shares | 4,643,603 | |||||||||||
Minimum [Member] | Fun Literature | Series B Convertible Redeemable Preferred Shares | ||||||||||||
Minority Interest [Line Items] | ||||||||||||
Share price | $ / shares | $ 4.307 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests and Noncontrolling Interests - Schedule of Redeemable Noncontrolling Interests Activities (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |||
Beginning balance | ¥ 495,844,565 | ¥ 96,936,855 | ¥ 0 |
Issuance of Fun Preferred Shares, net of issuance costs | 733,238,486 | 380,259,607 | 97,019,860 |
Foreign exchange impact | (37,374,084) | (1,899,929) | (1,061,206) |
Repurchase of Series B Preferred Shares | (146,459,680) | 0 | 0 |
Accretion on convertible redeemable preferred shares to redemption value | 48,276,771 | 20,548,032 | 978,201 |
Ending balance | ¥ 1,093,526,058 | ¥ 495,844,565 | ¥ 96,936,855 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Transaction and Balance Amount Due to/from Related Parties (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |||
Services provided by the group | |||||||
Amounts due from related parties | ¥ 383,594,360 | [1] | $ 58,788,408 | ¥ 278,155,878 | [1] | ||
Amount due to related parties | 9,426,883 | [2],[3] | $ 1,444,733 | 3,436,586 | [2],[3] | ||
Agent and Platform Service Provided to Related Party | |||||||
Services provided by the group | |||||||
Account due to related party | [4] | ¥ 29,597,143 | |||||
Advertising and Marketing Service Provided to Related Party | |||||||
Services provided by the group | |||||||
Amounts due from related parties | 368,500,000 | 262,600,000 | |||||
Account due to a related party | 15,100,000 | 15,600,000 | |||||
Account due to related party | [1] | 250,874,596 | 473,215,790 | 17,447,475 | |||
iCloud Server and Other Service Fee Charged from Related Party | |||||||
Services provided by the group | |||||||
Account due to a related party | [5] | 13,875,839 | |||||
Advertising costs charged from a related party | |||||||
Services provided by the group | |||||||
Account due to a related party | [2] | 29,206,380 | 35,605,180 | ||||
Gaming Cost Sharing Charged from a Related Party | |||||||
Services provided by the group | |||||||
Account due to a related party | [3] | 1,844,720 | 6,806,424 | ||||
Advertising Service Fee Charged from Related Parties | |||||||
Services provided by the group | |||||||
Account due to a related party | [6] | 4,192,090 | ¥ 3,284,223 | ¥ 15,815,201 | |||
Loan from a Related Party | |||||||
Services provided by the group | |||||||
Amount due to related parties | [7] | ¥ 13,049,800 | |||||
[1] | For the year ended December 31, 2018, the service fee charged to related parties consisted of: the advertising and marketing service of RMB 4.5 million provided to a company in which the founder of the Company was a member of key management (the founder was no longer a member of management of that company as of September 30, 2018), and the advertising service of RMB 12.9 million provided to Series B1 shareholder through September 2018 (After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018). For the year ended December 31, 2019 and 2020, the service fee of RMB473.2 million and RMB250.9 million charged to related parties represents advertising and marketing services provided to companies under the common control of the founder, to help promote these companies’ online applications, which were developed in late 2018. As of December 31, 2020, the amounts due from related parties is comprised of RMB368.5 million which pertains to accounts receivable from related parties revenues generated, whereas the remaining RMB15.1 million is a fee that the Company prepaid to a related party to place advertisements on behalf of their customers on the related party platform; the balance are settled and recorded as cost of revenues (see (5) below) as the advertisement services are provided. These balances were RMB262.6 million and RMB15.6 million, respectively, as of December 31, 2019. Out of the accounts receivable from related parties of RMB262.2 million as of December 31, 2019, a total of RMB160 million of the balances have been collected as of December 31, 2020; the remaining RMB102.2 million was collected during the first quarter of 2021. Although the receivables of RMB102.2 million were settled after the due date, as these companies are under the common control of the founder and they have demonstrated an ability to continuously pay off their balances, the Company did not view this delay in payment as a sign of collectability risk. For the revenue recognized in 2020, payments have not been received as the balances as of December 31, 2020 are still within the nine to twelve months payment terms and expect to be settled within the payment terms. | ||||||
[2] | In 2019 the Group entered into a CPM (cost per impression) arrangement with a media platform under the common control of the founder for the Group’s customer’s advertisement placement. The total service fee charged from the related party amounted to RMB35.6 million and RMB29.2 million for the years ended December 31, 2019 and 2020, respectively. | ||||||
[3] | In 2019 the Group entered into a game cooperation agreement with a game developing company which the founder’s controlled entity has significant influence over. The Company is the principal in the arrangement. The total service fee represents the amount paid to the game developing company in relation to the arrangement, and amounted to RMB6.8 million and RMB1.8 million for the years ended December 31, 2019 and 2020, respectively. | ||||||
[4] | The Group provided agent and platform service between the advertising customers and a company in which the founder of the Company was a member of key management by facilitating the advertising customers to display their advertisements. The founder was no longer a member of management of that company as of September 30, 2018. | ||||||
[5] | The service fee mainly represented cloud server and short message service fees charged from Series B1 shareholder through September 2018. After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018. | ||||||
[6] | For the year ended December 31, 2018, the Group entered into a cooperation agreement with Series B1 shareholder to promote the Company’s mobile application, and the cooperation agreement requires the Company to prepay a total service fee of RMB 31.5 million which will be recognized as expense over 3 years. For the year ended December 31, 2018, total service fee recognized as expense amounted to RMB 15.8 million. After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018. For the years ended December 31, 2019 and 2020, the service fee charged from related parties represented the expense charged from a company under common control of the founder which provided the Group advertising and marketing services. | ||||||
[7] | The Company borrowed an interest free loan of RMB13.0 million from an entity under common control of the founder in December 2020. The loan was repaid in the first quarter of 2021. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2019 |
Related Party Transactions [Abstract] | |||
Related party transaction, investment | ¥ 8 | ¥ 10 | ¥ 3 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Transaction and Balance Amount Due to/from Related Parties (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Sep. 30, 2018CNY (¥) | ||||
Related Party Transaction [Line Items] | ||||||||||
Debt Instrument, Face Amount | ¥ 13,000,000 | |||||||||
Amounts due from related parties | 383,594,360 | [1] | ¥ 278,155,878 | [1] | $ 58,788,408 | |||||
Increase (Decrease) in Due from Related Parties | 105,438,482 | $ 16,159,154 | 278,155,878 | |||||||
Series B1 Shareholder | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Voting power percentage | 1.50% | |||||||||
Advertising and Marketing Service Provided to Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amounts due from related parties | 368,500,000 | 262,600,000 | ||||||||
Increase (Decrease) in Due from Related Parties | 160,000,000 | 262,600,000 | ||||||||
Service fee charged to related parties | [1] | 250,874,596 | 473,215,790 | ¥ 17,447,475 | ||||||
Prepayment of service fee | 15,100,000 | 15,600,000 | ||||||||
Advertising and Marketing Service Provided to Related Party | Series B1 Shareholder | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Service fee charged to related parties | ¥ 12,900,000 | |||||||||
Advertising and Marketing Service Provided to Related Party | Subsequent Event | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Increase (Decrease) in Due from Related Parties | ¥ 102,600,000 | |||||||||
Advertising and Marketing Service Provided to Related Party | Founder of the Company | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Service fee charged to related parties | 250,900,000 | 473,200,000 | 4,500,000 | |||||||
Advertisement Costs Charged from a Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Prepayment of service fee | [2] | 29,206,380 | 35,605,180 | |||||||
Gaming Cost Sharing Charged from a Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Prepayment of service fee | [3] | ¥ 1,844,720 | ¥ 6,806,424 | |||||||
Cooperation Agreement | Series B1 Shareholder | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Voting power percentage | 1.50% | |||||||||
Prepayment of service fee | ¥ 31.5 | |||||||||
Period of payment of service fee | 3 years | |||||||||
Total service fee | ¥ 15,800,000 | |||||||||
iCloud Server and Other Service Fee Charged from Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Prepayment of service fee | [4] | ¥ 13,875,839 | ||||||||
iCloud Server and Other Service Fee Charged from Related Party | Series B1 Shareholder | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Voting power percentage | 1.50% | |||||||||
[1] | For the year ended December 31, 2018, the service fee charged to related parties consisted of: the advertising and marketing service of RMB 4.5 million provided to a company in which the founder of the Company was a member of key management (the founder was no longer a member of management of that company as of September 30, 2018), and the advertising service of RMB 12.9 million provided to Series B1 shareholder through September 2018 (After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018). For the year ended December 31, 2019 and 2020, the service fee of RMB473.2 million and RMB250.9 million charged to related parties represents advertising and marketing services provided to companies under the common control of the founder, to help promote these companies’ online applications, which were developed in late 2018. As of December 31, 2020, the amounts due from related parties is comprised of RMB368.5 million which pertains to accounts receivable from related parties revenues generated, whereas the remaining RMB15.1 million is a fee that the Company prepaid to a related party to place advertisements on behalf of their customers on the related party platform; the balance are settled and recorded as cost of revenues (see (5) below) as the advertisement services are provided. These balances were RMB262.6 million and RMB15.6 million, respectively, as of December 31, 2019. Out of the accounts receivable from related parties of RMB262.2 million as of December 31, 2019, a total of RMB160 million of the balances have been collected as of December 31, 2020; the remaining RMB102.2 million was collected during the first quarter of 2021. Although the receivables of RMB102.2 million were settled after the due date, as these companies are under the common control of the founder and they have demonstrated an ability to continuously pay off their balances, the Company did not view this delay in payment as a sign of collectability risk. For the revenue recognized in 2020, payments have not been received as the balances as of December 31, 2020 are still within the nine to twelve months payment terms and expect to be settled within the payment terms. | |||||||||
[2] | In 2019 the Group entered into a CPM (cost per impression) arrangement with a media platform under the common control of the founder for the Group’s customer’s advertisement placement. The total service fee charged from the related party amounted to RMB35.6 million and RMB29.2 million for the years ended December 31, 2019 and 2020, respectively. | |||||||||
[3] | In 2019 the Group entered into a game cooperation agreement with a game developing company which the founder’s controlled entity has significant influence over. The Company is the principal in the arrangement. The total service fee represents the amount paid to the game developing company in relation to the arrangement, and amounted to RMB6.8 million and RMB1.8 million for the years ended December 31, 2019 and 2020, respectively. | |||||||||
[4] | The service fee mainly represented cloud server and short message service fees charged from Series B1 shareholder through September 2018. After the IPO in September 2018, the Series B1 shareholder has no right to nominate the board member of the Company and has only 1.5% voting power of the Company and no ability to exercise significant influence. As a result, the Series B1 shareholder was no longer a related party of the Company after September 2018. |
Basic and Diluted Net Loss pe_3
Basic and Diluted Net Loss per Share - Schedule of Basic Loss per Share and Diluted Loss per Share (Details) | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018$ / shares | |
Numerator: | ||||||
Net loss attributable to Qutoutiao Inc. | ¥ (1,104,438,841) | $ (169,262,658) | ¥ (2,688,680,705) | ¥ (1,942,571,687) | ||
Accretion to redemption value | (48,276,771) | (20,548,032) | (978,201) | |||
Deemed dividend to preferred shareholders (Note 15) | (1,916,871) | |||||
Gains on repurchase of convertible redeemable preferred shares (Note 14) | 0 | 18,332,152 | ||||
Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) | 14,841,680 | 2,274,587 | ||||
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | ¥ (1,137,873,932) | $ (174,386,810) | ¥ (2,709,228,737) | ¥ (2,028,941,350) | ||
Denominator: | ||||||
Basic and diluted | shares | 72,513,077 | 72,513,077 | 68,749,981 | 38,507,184 | ||
Basic and diluted loss per share | (per share) | ¥ (15.69) | $ (2.40) | ¥ (39.41) | ¥ (52.69) | ||
Series A Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion to redemption value | ¥ (15,718,213) | |||||
Accretion on Series A convertible redeemable preferred shares of a subsidiary | ¥ (13,509,457) | ¥ (12,171,842) | (978,201) | |||
Series A1 Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion to redemption value | (4,840,875) | |||||
Series B1 Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion to redemption value | (37,001,459) | |||||
Series B2 Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion to redemption value | (31,800,587) | |||||
Series B3 Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion to redemption value | (12,312,158) | |||||
Series C1 Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion to redemption value | ¥ (133,451) | |||||
Series B Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion on Series A convertible redeemable preferred shares of a subsidiary | (33,187,330) | ¥ (8,376,190) | ||||
Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) | 14,841,680 | |||||
Series C Convertible Redeemable Preferred Shares | ||||||
Numerator: | ||||||
Accretion on Series A convertible redeemable preferred shares of a subsidiary | ¥ (1,579,984) | |||||
American Depositary Shares | ||||||
Denominator: | ||||||
Basic and diluted | shares | 290,052,308 | 290,052,308 | 274,999,924 | 154,028,736 | ||
Basic and diluted loss per share | $ / shares | $ (3.92) | $ (9.85) | $ (13.17) |
Basic and Diluted Net Loss pe_4
Basic and Diluted Net Loss per Share - Additional Information (Details) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share Basic [Line Items] | |||
Weighted average number of shares subject to certain vesting restrictions | 15,937,500 | ||
Weighted average number of shares subject to contingently issuable shares | 6,141,679 | 5,329,287 | 3,506,712 |
Weighted average exercise price of options included in computation of basic eps | ¥ 0.0007 | ¥ 0.0007 | ¥ 0.0007 |
American Depositary Shares | |||
Earnings Per Share Basic [Line Items] | |||
Weighted average number of shares subject to contingently issuable shares | 24,566,716 | 21,317,146 | 14,026,848 |
Basic and Diluted Net Loss pe_5
Basic and Diluted Net Loss per Share - Schedule of Potential Ordinary Shares Excluded from Computation of Diluted Net Loss per Ordinary Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Preferred Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average | 0 | 10,134,756 | |
Share Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average | 1,353,808 | 4,119,918 | 6,350,735 |
Restricted shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average | 0 | 6,976,785 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 20, 2020CNY (¥) | Jan. 20, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Operating Leased Assets [Line Items] | ||||||
Litigation settlement payment | ¥ 103,200,000 | $ 14,900,000 | ||||
Restricted cash | ¥ 100,300,000 | $ 15,374,090 | ¥ 27,871,552 | |||
Cash | 360,600,000 | 55,000,000 | ¥ 18,500,000 | |||
Litigation Settlement | ||||||
Operating Leased Assets [Line Items] | ||||||
Restricted cash | ¥ 18,500,000 | $ 2,600,000 | ||||
Additional Litigation Settlement | ||||||
Operating Leased Assets [Line Items] | ||||||
Restricted cash | 64,300,000 | $ 9,900,000 | ||||
Loss contingency settlement, accrued | ¥ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments with Respect to Agreements (Details) - Dec. 31, 2020 | CNY (¥) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | ¥ 103,289,167 | $ 15,829,757 |
2022 | ¥ 12,862,500 | $ 1,971,264 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancellable Capital Expenditure (Details) - Dec. 31, 2020 | CNY (¥) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | ¥ 8,926,000 | $ 1,367,969 |
2022 | 94,000 | 14,406 |
2023 | ¥ 188,000 | $ 28,816 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets Disclosure [Line Items] | |
Restrictions on net assets of PRC subsidiaries, threshold percentage | 25.00% |
Variable Interest Entities | |
Restricted Net Assets Disclosure [Line Items] | |
Percentage of transfer of net income after tax to statutory general reserve | 10.00% |
Percentage of reserve funds that reached registered capital | 50.00% |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Balance Sheets (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 494,474,891 | $ 75,781,592 | ¥ 347,817,093 | ¥ 2,186,288,246 | |
Short-term investments | 391,033,374 | 59,928,486 | 1,276,830,926 | ||
Prepayments and other current assets | 365,108,503 | 55,955,326 | 234,728,386 | ||
Total current assets | 2,472,316,241 | 378,899,040 | 2,692,226,767 | ||
Other non-current assets | 148,091,140 | 22,695,960 | 20,811,791 | ||
Total non-current assets | 443,541,348 | 67,975,685 | 247,970,128 | ||
Total assets | 2,915,857,589 | 446,874,725 | 2,940,196,895 | ||
Non-current liabilities: | |||||
Convertible loan | 1,174,900,000 | 180,056,381 | 1,218,905,676 | ||
Other non-current liabilities | 4,255,931 | 652,250 | 7,212,463 | ||
Non-current liabilities | 1,221,700,000 | 187,234,476 | 1,273,998,241 | ||
Total liabilities | 3,107,695,299 | 476,275,140 | 3,149,695,951 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 4,784,314,735 | 733,228,312 | 4,321,100,861 | ||
Treasury stock (US$0.0001 par value; 8,635,420 and 0 shares as of December 31, 2019 and December 31, 2020, respectively) | 142,228,779 | 21,797,514 | 142,228,779 | ||
Accumulated other comprehensive income (loss) | 84,319,590 | 12,922,543 | (17,934,525) | ||
Accumulated deficit | (6,007,200,000) | (920,647,797) | (4,862,464,162) | ||
Total shareholders' deficit | (1,285,363,768) | (196,990,616) | (705,343,621) | ¥ 1,511,232,780 | ¥ (108,560,011) |
Total liabilities, mezzanine equity and shareholders' deficit | 2,915,857,589 | 446,874,725 | 2,940,196,895 | ||
Class A Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 22,426 | 3,437 | 20,260 | ||
Class B Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 24,391 | 3,738 | 24,391 | ||
Parent Company | |||||
Current assets: | |||||
Cash and cash equivalents | 1,932,747 | 296,206 | 148,279,138 | ||
Short-term investments | 0 | 0 | 498,100,680 | ||
Prepayments and other current assets | 3,618,939 | 554,627 | 8,030,839 | ||
Total current assets | 5,551,686 | 850,833 | 654,410,657 | ||
Other non-current assets | 4,266,143 | 653,815 | 6,251,505 | ||
Total non-current assets | 4,266,143 | 653,815 | 6,251,505 | ||
Total assets | 9,817,829 | 1,504,648 | 660,662,162 | ||
Current liabilities | |||||
Accrued expenses and other current liabilities | 2,510,911 | 384,814 | 2,640,434 | ||
Non-current liabilities: | |||||
Convertible loan | 1,174,867,883 | 180,056,381 | 1,218,905,676 | ||
Other non-current liabilities | 4,255,931 | 652,250 | 7,212,463 | ||
Payables to subsidiaries and VIEs | 108,957,614 | 16,698,485 | 133,385,543 | ||
Non-current liabilities | 1,288,081,428 | 197,407,116 | 1,359,503,682 | ||
Total liabilities | 1,290,592,339 | 197,791,930 | 1,362,144,116 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 4,784,314,735 | 733,228,312 | 4,321,100,861 | ||
Treasury stock (US$0.0001 par value; 8,635,420 and 0 shares as of December 31, 2019 and December 31, 2020, respectively) | (142,228,779) | (21,797,514) | (142,228,779) | ||
Accumulated other comprehensive income (loss) | 84,319,590 | 12,922,543 | (17,934,525) | ||
Accumulated deficit | (6,007,226,873) | (920,647,797) | (4,862,464,162) | ||
Total shareholders' deficit | (1,280,774,510) | (196,287,281) | (701,481,954) | ||
Total liabilities, mezzanine equity and shareholders' deficit | 9,817,829 | 1,504,649 | 660,662,162 | ||
Parent Company | Class A Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 22,426 | 3,437 | 20,260 | ||
Parent Company | Class B Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | ¥ 24,391 | $ 3,738 | ¥ 24,391 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 01, 2017 | Jul. 17, 2017 |
Condensed Financial Statements Captions [Line Items] | ||||
Ordinary shares, par value | $ 1 | |||
Ordinary shares, shares authorized | 50,000 | |||
Ordinary shares, shares, issued | 50,000 | |||
Treasury stock, par value | $ 0.0001 | |||
Class A Ordinary Shares | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||
Ordinary shares, shares, issued | 42,812,245 | 40,812,245 | ||
Ordinary shares, shares, outstanding | 35,321,611 | 32,176,825 | ||
Class B Ordinary Shares | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 34,248,442 | 34,248,442 | ||
Ordinary shares, shares, issued | 32,937,193 | 32,937,193 | ||
Ordinary shares, shares, outstanding | 32,937,193 | 32,937,193 | ||
Parent Company | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Treasury stock, par value | $ 0.0001 | $ 0.0001 | ||
Treasury stock, shares | 7,490,634 | 8,635,420 | ||
Parent Company | Class A Ordinary Shares | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||
Ordinary shares, shares, issued | 42,812,245 | 40,812,245 | ||
Ordinary shares, shares, outstanding | 35,321,611 | 32,176,825 | ||
Parent Company | Class B Ordinary Shares | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 34,248,442 | 34,248,442 | ||
Ordinary shares, shares, issued | 32,937,193 | 32,937,193 | ||
Ordinary shares, shares, outstanding | 32,937,193 | 32,937,193 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Statements of Comprehensive Loss (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating expenses: | ||||
General and administrative | ¥ 392,815,316 | $ 60,201,581 | ¥ 267,033,100 | ¥ 980,725,286 |
Total operating expenses | 4,722,246,656 | 723,715,963 | 6,682,972,554 | 4,500,871,132 |
Interest income | 10,418,919 | 1,596,769 | 48,440,468 | 27,087,009 |
Interest expense | (38,143,009) | (5,845,672) | (26,878,316) | |
Foreign exchange related gains (loss), net | (7,183,462) | (1,100,914) | 1,868,497 | 4,133,996 |
Other income/(expenses), net | (7,308,728) | (1,120,112) | 9,048,926 | (69,181) |
Loss before income taxes | (1,106,173,803) | (169,528,552) | (2,684,424,971) | (1,946,246,753) |
Provision for income taxes | 1,007,370 | 154,386 | (4,842,876) | 400,541 |
Net loss | (1,105,200,000) | (169,374,166) | (2,689,267,847) | (1,945,846,212) |
Gains on repurchase of convertible redeemable preferred shares | 0 | 18,332,152 | ||
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | (1,137,873,932) | (174,386,810) | (2,709,228,737) | (2,028,941,350) |
Net loss | (1,105,200,000) | (169,374,166) | (2,689,267,847) | (1,945,846,212) |
Foreign currency translation adjustment, net of nil tax | 102,254,115 | 15,671,129 | (1,505,650) | (16,453,526) |
Comprehensive loss attributable to Qutoutiao Inc. | (1,002,184,726) | (153,591,529) | (2,690,186,355) | (1,959,025,213) |
Parent Company | ||||
Operating expenses: | ||||
General and administrative | (471,730,407) | (72,295,848) | (287,026,788) | (959,590,151) |
Total operating expenses | (471,730,407) | (72,295,848) | (287,026,788) | (959,590,151) |
Loss from operations | (471,730,407) | (72,295,848) | (287,026,788) | (959,590,151) |
Investment income | 0 | 0 | 3,098,150 | |
Interest income | 2,819,127 | 432,050 | 44,271,057 | 23,805,861 |
Interest expense | (36,773,704) | (5,635,817) | (26,878,316) | |
Foreign exchange related gains (loss), net | (6,920) | (1,061) | ||
Other income/(expenses), net | (41,744) | (6,398) | ||
Loss from subsidiaries and VIEs | (598,705,193) | (91,755,584) | (2,419,046,658) | (1,009,885,547) |
Loss before income taxes | (1,104,438,841) | (169,262,658) | (2,688,680,705) | (1,942,571,687) |
Provision for income taxes | 0 | 0 | ||
Net loss | (1,104,438,841) | (169,262,658) | (2,688,680,705) | (1,942,571,687) |
Accretion to convertible redeemable preferred shares redemption value | 0 | 0 | (101,806,743) | |
Gains on repurchase of convertible redeemable preferred shares | 0 | 0 | 18,332,152 | |
Deemed dividend to preferred shareholders | 0 | 0 | (1,916,871) | |
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | (1,137,873,932) | (174,386,810) | (2,709,228,737) | (2,028,941,350) |
Net loss | (1,104,438,841) | (169,262,658) | (2,688,680,705) | (1,942,571,687) |
Foreign currency translation adjustment, net of nil tax | 102,254,115 | 15,671,129 | (1,505,650) | (16,453,526) |
Comprehensive loss attributable to Qutoutiao Inc. | (1,002,184,726) | (153,591,529) | (2,690,186,355) | (1,959,025,213) |
Parent Company | Subsidiary | ||||
Operating expenses: | ||||
Accretion to convertible redeemable preferred shares redemption value | (48,276,771) | (7,398,739) | ¥ (20,548,032) | ¥ (978,201) |
Gains on repurchase of convertible redeemable preferred shares | ¥ 14,841,680 | $ 2,274,587 |
Condensed Financial Statement_6
Condensed Financial Statements of Parent Company - Statements of Cash Flows (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Financial Statements Captions [Line Items] | ||||
Net cash used in operating activities | ¥ (863,800,000) | $ (132,379,179) | ¥ (2,367,295,070) | ¥ (434,764,524) |
Cash flows used in investing activities | 782,544,989 | 119,930,266 | (1,224,151,603) | (72,492,552) |
Cash flows provided by/(used in) financing activities | 307,746,200 | 47,164,168 | 1,768,001,310 | 2,298,043,751 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (7,414,861) | (1,136,377) | 12,845,762 | 117,043,158 |
Cash, cash equivalents and restricted cash at the beginning of year | 375,688,645 | 57,576,804 | 2,186,288,246 | 278,458,413 |
Cash, cash equivalents and restricted cash at the end of year | 594,790,831 | 91,155,682 | 375,688,645 | 2,186,288,246 |
Parent Company | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net cash used in operating activities | (354,228) | (54,288) | 39,182,532 | 23,710,900 |
Cash flows used in investing activities | (10,007,458) | (15,593,371) | (3,327,606,050) | (591,572,091) |
Cash flows provided by/(used in) financing activities | (135,744,000) | (1,533,710) | 1,397,381,828 | 2,206,005,176 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (240,705) | (36,890) | 15,905,018 | 118,146,408 |
Net increase in cash and cash equivalents | (146,346,391) | (22,428,566) | (1,875,136,672) | 1,756,290,393 |
Cash, cash equivalents and restricted cash at the beginning of year | 148,279,138 | 22,724,772 | 2,023,415,810 | 267,125,417 |
Cash, cash equivalents and restricted cash at the end of year | ¥ 1,932,747 | $ 296,206 | ¥ 148,279,138 | ¥ 2,023,415,810 |