Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
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 | Non-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. 2 |
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 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Shanghai, the People’s Republic of China |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Building No. 2 |
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. Eric Siliang Tan, Chief Executive Officer and Interim 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 | 46,920,018 |
Title of each class | Class A Ordinary Shares, par value US$0.0001 per share |
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 two representing five Class A ordinary shares |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | ||
Current assets: | |||||
Cash and cash equivalents | ¥ 122,801 | $ 17,804 | ¥ 240,351 | ||
Restricted cash | 7,600 | 1,102 | 75,482 | ||
Short-term investments | 26,402 | 3,828 | 343,017 | ||
Accounts receivable, net | 117,409 | 17,023 | 770,919 | ||
Amounts due from related parties | 48,802 | [1] | 7,076 | 259,863 | [1] |
Prepayments and other current assets | 158,811 | 23,025 | 172,877 | ||
Total current assets | 481,825 | 69,858 | 1,862,509 | ||
Non-current assets: | |||||
Property and equipment, net | 5,013 | 727 | 12,861 | ||
Right-of-use assets, net | 21,879 | 3,172 | 26,342 | ||
Intangible assets | 62,649 | 9,083 | 165,270 | ||
Goodwill | 7,268 | 1,054 | 7,268 | ||
Long-term investments | 0 | 1,416 | |||
Other non-current assets | 2,902 | 421 | 4,809 | ||
Total non-current assets | 99,711 | 14,457 | 217,966 | ||
Total assets | 581,536 | 84,315 | 2,080,475 | ||
Current liabilities (including current liabilities of the consolidated variable interest entity("VIEs") and its subsidiaries without recourse to the Company amounting to RMB1,902,280 and RMB811,303 as of December 31, 2021 and December 31, 2022, respectively): | |||||
Short-term borrowings | 0 | 20,000 | |||
Accounts payable | 394,994 | 57,269 | 313,768 | ||
Amounts due to a related party | 592 | [2],[3] | 86 | 6,928 | [2],[3] |
Registered users' loyalty payable | 29,800 | 4,317 | 61,691 | ||
Advance from customers and deferred revenue | 48,706 | 7,062 | 122,597 | ||
Salary and welfare payable | 59,561 | 8,636 | 65,987 | ||
Tax payable | 40,474 | 5,868 | 43,879 | ||
Lease liabilities, current | 15,083 | 2,187 | 11,897 | ||
Accrued liabilities related to users' loyalty programs | 64,600 | 9,365 | 99,360 | ||
Accrued liabilities and other current liabilities | 336,262 | 48,752 | 1,334,603 | ||
Convertible loan | 1,746,188 | 253,173 | 1,182,963 | ||
Total current liabilities | 2,736,222 | 396,715 | 3,263,673 | ||
Non-current liabilities: (including non-current liabilities of the consolidated variable interest entity("VIEs") and its subsidiaries without recourse to the Company amounting to RMB15,985 and RMB7,599, as of December 31, 2021 and December 31, 2022, respectively) | |||||
Other non-current liabilities | 0 | 0 | 1,733 | ||
Lease liabilities, non-current | 7,599 | 1,102 | 15,985 | ||
Deferred tax liabilities | 14,019 | 2,033 | 16,422 | ||
Total non-current liabilities | 21,618 | 3,135 | 34,140 | ||
Total liabilities | 2,757,840 | 399,850 | 3,297,813 | ||
Commitments and contingencies | |||||
Mezzanine equity: | |||||
Redeemable non-controlling interests | 1,414,435 | 205,074 | 1,172,218 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 5,049,458 | 732,103 | 4,979,353 | ||
Treasury stock (US$0.0001 par value; 4,441,353 and 4,085,608 shares as of December 31, 2021 and 2022, respectively) | (142,229) | (20,621) | (142,229) | ||
Accumulated other comprehensive income | (102,834) | (14,911) | 129,010 | ||
Accumulated deficit | (8,395,200) | (1,217,187) | (7,355,740) | ||
Total Qutoutiao Inc. shareholders' deficit | (3,590,739) | (520,609) | (2,389,556) | ||
Total liabilities, mezzanine equity and shareholders' deficit | 581,536 | 84,315 | 2,080,475 | ||
Class A Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 26 | 4 | 26 | ||
Class B Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | ¥ 24 | $ 3 | ¥ 24 | ||
[1]For the years ended December 31, 2020, 2021 and 2022, the service fee of RMB250.9 million, RMB39.8 million and RMB2.5 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, 2021 and 2022, the amounts due from related parties that pertains to accounts receivable from related party revenues generated was RMB246.5 million and RMB48.8 million respectively. Although the balance as of December 31, 2022 is overdue, 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.[2]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 RMB29.2 million, RMB103.3 million and RMB14.6 million for the years ended December 31, 2020, 2021 and 2022, respectively.[3]In July 2019, the Company invested RMB3.0 million in a game developing company which the founder’s controlled entity has significant influence in. The investment was measured using the measurement alternative recorded at cost less any impairment since it does not have a readily determinable fair value. The investment was fully impaired as of December 31, 2021. (Note 6). In 2019 the Group entered into a game cooperation agreement with this company and the Group is the principal in the arrangement. The total service fee represents the amount paid to this company in relation to the arrangement. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares |
Current liabilities | ¥ 2,736,222 | $ 396,715 | ¥ 3,263,673 |
Non-current liabilities | ¥ 21,618 | $ 3,135 | ¥ 34,140 |
Treasury stock, par value | $ / shares | $ 0.0001 | ||
Treasury stock, shares | 4,085,608 | 4,085,608 | 4,441,353 |
Variable Interest Entities | |||
Current liabilities | ¥ | ¥ 811,303 | ¥ 1,902,280 | |
Non-current liabilities | ¥ | ¥ 7,599 | ¥ 15,985 | |
Class A Ordinary Shares | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Ordinary shares, shares, issued | 42,812,245 | 42,812,245 | 42,812,245 |
Ordinary shares, shares, outstanding | 38,726,637 | 38,726,637 | 38,370,892 |
Class B Ordinary Shares | |||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||
Ordinary shares, shares authorized | 34,248,442 | 34,248,442 | 34,248,442 |
Ordinary shares, shares, issued | 32,937,193 | 32,937,193 | 32,937,193 |
Ordinary shares, shares, outstanding | 32,937,193 | 32,937,193 | 32,937,193 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Net revenues | ¥ 1,083,045 | $ 157,026 | ¥ 4,339,603 | ¥ 5,285,195 |
Cost of revenues | (548,043) | (79,459) | (1,068,340) | (1,643,365) |
Cost of revenues-related parties | (14,564) | (2,112) | (103,286) | (31,051) |
Gross profit | 520,438 | 75,455 | 3,167,977 | 3,610,779 |
Operating expenses: | ||||
Research and development expenses | (184,604) | (26,765) | (551,612) | (947,871) |
Sales and marketing expenses | (552,771) | (80,144) | (3,467,933) | (3,377,368) |
Sales and marketing expenses-related parties | (7,945) | (1,152) | (15,840) | (4,192) |
General and administrative expenses | (155,445) | (22,537) | (431,913) | (392,816) |
Total operating expenses | (900,765) | (130,598) | (4,467,298) | (4,722,247) |
Other operating income | 61,829 | 8,964 | 106,098 | 79,299 |
Loss from operations | (318,498) | (46,179) | (1,193,223) | (1,032,169) |
Interest income | 1,370 | 199 | 3,174 | 10,419 |
Interest expense | (468,612) | (67,942) | (35,477) | (38,143) |
Foreign exchange related gains/(loss), net | (903) | (131) | (1) | (7,183) |
Investment income/(loss) including impairment, net | (45,877) | (6,652) | (36,041) | (31,788) |
Other income/(expenses), net | (81,879) | (11,872) | 27,637 | (7,310) |
Loss before income taxes | (914,399) | (132,577) | (1,233,931) | (1,106,174) |
Income tax benefit/(expense) | 1,048 | 152 | (3,050) | 1,008 |
Equity in loss of affiliate companies | (1,416) | (205) | (3,195) | |
Net loss | (914,800) | (132,630) | (1,240,176) | (1,105,166) |
Net loss attributable to non-controlling interests | 559 | 727 | ||
Net loss attributable to Qutoutiao Inc. | (914,767) | (132,630) | (1,239,617) | (1,104,439) |
Accretion to redemption value of convertible redeemable preferred shares of a subsidiary | (124,677) | (18,076) | (108,896) | (48,277) |
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | 14,842 | |||
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | (1,039,444) | (150,706) | (1,348,513) | (1,137,874) |
Net loss | (914,800) | (132,630) | (1,240,176) | (1,105,166) |
Other comprehensive income/(loss) | ||||
Foreign currency translation adjustment, net of nil tax | (231,844) | (33,614) | 44,690 | 102,254 |
Total comprehensive loss | (1,146,611) | (166,244) | (1,195,486) | (1,002,912) |
Comprehensive loss attributable to non-controlling interests | 559 | 727 | ||
Comprehensive loss attributable to Qutoutiao Inc. | ¥ (1,146,611) | $ (166,244) | ¥ (1,194,927) | ¥ (1,002,185) |
Net loss per share attributable to Qutoutiao Inc.'s ordinary shareholders | ||||
Earnings Per Share, Basic | (per share) | ¥ (13.56) | $ (1.97) | ¥ (17.8) | ¥ (15.69) |
Earnings Per Share, Diluted | (per share) | ¥ (13.56) | $ (1.97) | ¥ (17.8) | ¥ (15.69) |
Weighted average number of ordinary shares used in per share calculation: | ||||
Weighted Average Number of Shares Outstanding, Basic | shares | 76,629,816 | 76,629,816 | 75,767,532 | 72,513,077 |
Weighted Average Number of Shares Outstanding, Diluted | shares | 76,629,816 | 76,629,816 | 75,767,532 | 72,513,077 |
Advertising and Marketing Revenue | ||||
Net revenues | ¥ 836,926 | $ 121,343 | ¥ 4,050,120 | ¥ 4,795,960 |
Advertising And Marketing Revenue Related Parties | ||||
Net revenues | 2,451 | 355 | 40,263 | 250,875 |
Other Revenue | ||||
Net revenues | ¥ 243,668 | $ 35,328 | ¥ 249,220 | ¥ 238,360 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Statement of Comprehensive Income [Abstract] | |
Foreign currency translation adjustment, tax | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - CNY (¥) ¥ in Thousands | Total | Series A Convertible Redeemable Preferred Shares | Series B Convertible Redeemable Preferred Shares | Series C Convertible Redeemable Preferred Shares | Outstanding Ordinary Shares | Additional Paid-In Capital | Treasury Stocks | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Accumulated Deficit Series A Convertible Redeemable Preferred Shares | Accumulated Deficit Series B Convertible Redeemable Preferred Shares | Accumulated Deficit Series C Convertible Redeemable Preferred Shares | Statutory Reserves | Non-controlling Interests | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Deficit |
Beginning balance at Dec. 31, 2019 | ¥ (705,344) | ¥ 45 | ¥ 4,321,101 | ¥ (142,229) | ¥ (17,935) | ¥ (4,862,464) | ¥ (3,862) | |||||||||
Beginning balance, shares at Dec. 31, 2019 | 65,114,018 | 8,635,420 | ||||||||||||||
Share-based compensation expense (Note 18)/(Note 16) | 463,214 | 463,214 | ||||||||||||||
Cumulative effect of adoption of accounting standard | ¥ (6,889) | ¥ (6,889) | ||||||||||||||
Accretion to convertible redeemable preferred shares of a subsidiary (Note 21) | ¥ (13,509) | ¥ (33,187) | ¥ (1,580) | ¥ (13,509) | ¥ (33,187) | ¥ (1,580) | ||||||||||
Gains on repurchase of Series B convertible redeemable preferred shares of a subsidiary (Note 21) | 14,842 | 14,843 | 14,843 | |||||||||||||
Exercise of share options | ¥ 2 | ¥ 2 | ||||||||||||||
Exercise of share options, shares | 3,144,786 | 3,144,786 | (1,144,786) | |||||||||||||
Net loss | ¥ (1,105,168) | (1,104,441) | (727) | |||||||||||||
Foreign currency translation | 102,255 | 102,255 | ||||||||||||||
Ending balance at Dec. 31, 2020 | (1,285,363) | ¥ 47 | 4,784,315 | ¥ (142,229) | 84,320 | (6,007,227) | (4,589) | |||||||||
Ending balance, shares at Dec. 31, 2020 | 68,258,804 | 7,490,634 | ||||||||||||||
Share-based compensation expense (Note 18)/(Note 16) | 200,186 | 200,186 | ||||||||||||||
Accretion to convertible redeemable preferred shares of a subsidiary (Note 21) | (14,089) | (21,726) | (73,081) | (14,089) | (21,726) | (73,081) | ||||||||||
Gains on repurchase of Series B convertible redeemable preferred shares of a subsidiary (Note 21) | 0 | |||||||||||||||
Exercise of share options | ¥ 3 | ¥ 3 | ||||||||||||||
Exercise of share options, shares | 3,049,281 | 3,049,281 | (3,049,281) | |||||||||||||
Net loss | ¥ (1,240,176) | (1,239,617) | (559) | |||||||||||||
Foreign currency translation | 44,690 | 44,690 | ||||||||||||||
Acquisition of remaining equity interest of a subsidiary from the non-controlling interests (Note 21) | (5,148) | 5,148 | ||||||||||||||
Ending balance at Dec. 31, 2021 | (2,389,556) | ¥ 50 | 4,979,353 | ¥ (142,229) | 129,010 | (7,355,740) | ¥ (2,389,556) | ¥ 0 | ||||||||
Ending balance, shares at Dec. 31, 2021 | 71,308,085 | 4,441,353 | ||||||||||||||
Share-based compensation expense (Note 18)/(Note 16) | 70,105 | 70,105 | ||||||||||||||
Cumulative effect of adoption of accounting standard | ¥ 6,900 | |||||||||||||||
Accretion to convertible redeemable preferred shares of a subsidiary (Note 21) | ¥ (15,947) | ¥ (24,918) | ¥ (83,812) | ¥ (15,947) | ¥ (24,918) | ¥ (83,812) | ||||||||||
Gains on repurchase of Series B convertible redeemable preferred shares of a subsidiary (Note 21) | ¥ 0 | |||||||||||||||
Exercise of share options, shares | 355,745 | 355,745 | (355,745) | |||||||||||||
Net loss | ¥ (914,767) | (914,767) | ||||||||||||||
Foreign currency translation | ¥ (231,844) | (231,844) | ||||||||||||||
Ending balance at Dec. 31, 2022 | ¥ 50 | ¥ 5,049,458 | ¥ (142,229) | ¥ (102,834) | ¥ (8,395,184) | ¥ (3,590,739) | ||||||||||
Ending balance, shares at Dec. 31, 2022 | 71,663,830 | 4,085,608 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities | ||||
Net loss | ¥ (914,800) | $ (132,630) | ¥ (1,240,176) | ¥ (1,105,166) |
Adjustments for: | ||||
Depreciation of property and equipment | 2,324 | 337 | 11,108 | 12,144 |
Amortization of intangible assets | 102,621 | 14,879 | 54,099 | 13,026 |
Non-cash operating lease expense | 12,996 | 1,884 | 29,464 | 41,205 |
Deferred tax benefit | (2,403) | (348) | (2,403) | (2,404) |
Share-based compensation | 70,105 | 10,164 | 200,186 | 463,214 |
Interest expense | 438,112 | 63,520 | 35,350 | 36,798 |
Changes in estimate for accrued liabilities related to users' loyalty programs | 4,137 | 600 | 12,369 | 8,746 |
Allowance for doubtful accounts | (467) | (68) | 249,143 | 79,809 |
Unrealized loss (gain) of publicly traded equity security | 15,315 | (16,665) | ||
Unrealized loss of non-marketable equity securities | 50,487 | 7,320 | 1,208 | 54,403 |
Loss (gain) on disposal of property, plant and equipment | 4,097 | 594 | (216) | 170 |
Gain on disposal of subsidiary | (23,083) | |||
Equity in losses of affiliated companies | 1,416 | 205 | 3,195 | |
Impairment of long-term investment securities | 28,528 | |||
Changes in assets and liabilities, net of impact of acquisition: | ||||
Accounts receivable | 653,977 | 94,819 | (282,272) | (297,664) |
Amount due from related parties | 211,061 | 30,601 | 123,731 | (105,438) |
Prepayments and other current assets | 14,066 | 2,039 | 195,375 | 105,749 |
Accounts receivables, non-current | 54,639 | (54,639) | ||
Other non-current assets | 1,907 | 276 | 3,350 | 13,112 |
Accounts payable | 81,226 | 11,777 | (135,213) | 120,575 |
Amount due to related parties | (6,336) | (919) | (2,499) | 5,990 |
Registered users' loyalty payable | (31,918) | (4,628) | (10,935) | (61,519) |
Salary and welfare payable | (6,426) | (932) | (83,334) | 20,257 |
Tax payable | (3,405) | (494) | (53,265) | (20,964) |
Accrued liabilities related to users' loyalty programs | (38,908) | (5,641) | (13,095) | 2,157 |
Accrued liabilities and other current liabilities | (998,342) | (144,744) | 593,134 | (28,786) |
Advances from customers and deferred revenue | (73,891) | (10,713) | (18,179) | (105,854) |
Operating lease liabilities | (13,733) | (1,991) | (22,122) | (39,073) |
Non-current liabilities | (1,733) | (251) | (2,524) | (2,957) |
Net cash used in operating activities | (443,800) | (64,344) | (279,122) | (863,774) |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (26,402) | (3,828) | (899,787) | (1,271,776) |
Purchase of long-term investments | (106,277) | |||
Proceeds from sales and maturity of short-term investments | 292,530 | 42,413 | 981,975 | 2,173,594 |
Purchase of intangible assets | (113) | (3,786) | ||
Purchase of property and equipment | (7) | (1) | (7,607) | (6,198) |
Proceeds from disposal of property and equipment | 1,434 | 208 | 1,053 | 788 |
Prepayment for purchase of intangible asset | (3,800) | |||
Net cash provided by investing activities | 267,555 | 38,792 | 75,521 | 782,545 |
Cash flows from financing activities: | ||||
Proceeds from bank borrowings | 20,000 | 70,000 | ||
Repayments of bank borrowings | (20,000) | (2,900) | (70,000) | |
Proceeds of borrowings from a related party | 13,356 | |||
Repayment of borrowings from a related party | (12,959) | |||
Net cash provided by financing activities | (20,000) | (2,900) | (66,094) | 307,746 |
Net increase/ (decrease) in cash, cash equivalents and restricted cash | (196,242) | (28,452) | (269,695) | 226,517 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 10,810 | 1,567 | (9,263) | (7,415) |
Cash, cash equivalents and restricted cash at the beginning of year | 315,833 | 45,791 | 594,791 | 375,689 |
Cash, cash equivalents and restricted cash at the end of year | 130,401 | 18,906 | 315,833 | 594,791 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest (Note 14) | 30,247 | 4,385 | 42 | 364 |
Cash paid for income taxes | 1,478 | 214 | 4,079 | 3,268 |
Non-cash financing and investing activities: | ||||
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | 0 | 0 | (14,842) | |
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) | (375,805) | |||
The below table reconciles cash, cash equivalents, and restricted cash as reported in the consolidated balance sheets to the total of the same amounts shown in the consolidated statements of cash flows | ||||
Cash and cash equivalents | 122,801 | 17,804 | 240,351 | 494,475 |
Restricted cash | 7,600 | 1,102 | 75,482 | 100,316 |
Cash, cash equivalents and restricted cash at the end of year | 130,401 | 18,906 | 315,833 | 594,791 |
Series B Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Payment of accrued issuance costs for convertible redeemable preferred shares of a subsidiary | (435) | |||
Repurchase of Series B Convertible redeemable Preferred Shares of a subsidiary | (135,744) | |||
Non-cash financing and investing activities: | ||||
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | (14,843) | |||
Series C Convertible Redeemable Preferred Shares | ||||
Cash flows from financing activities: | ||||
Payment of accrued issuance costs for convertible redeemable preferred shares of a subsidiary | (3,135) | |||
Proceeds from issuance of Series C Convertible redeemable Preferred Shares of a subsidiary, net of issuance costs | 360,569 | |||
Non-cash financing and investing activities: | ||||
Accrued Series C convertible redeemable preferred shares issuance cost of a subsidiary | 3,135 | |||
Series AB And C Convertible Redeemable Preferred Shares Of Subsidiary [Member] | ||||
Non-cash financing and investing activities: | ||||
Accretion to preferred shares redemption value | ¥ 124,677 | $ 18,076 | ¥ 108,896 | ¥ 48,277 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2022 | |
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”), 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, 2022, the Company’s principal subsidiaries and consolidated Affiliated Entities are as follows: Name of subsidiaries and VIEs Date of Place of Percentage of 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 65 % 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 % Kubik Media International Ltd. (“Kubik Media”) May 2018 BVI 100 % Kubik Technology Pte., Ltd. (“Kubik Technology”) May 2018 Singapore 100 % PT. Sedjahtera Inti Abadi (“Abadi”) October 2018 Indonesia 100 % AI-Fun Technology Limited (“AI-Fun”) January 2019 Hong Kong 100 % Fun-Platform Holdings Limited (“Fun-Platform”) January 2019 Cayman 100 % Striking Technology Holdings limited (“Striking”) January 2019 Hong Kong 100 % Fun Literature SG Pte. Ltd. (“Fun SG”) February 2021 Singapore 100 % Shanghai Zhicao Information Technology Co., Ltd. (“Zhicao WFOE”) December 2018 PRC 100 % Shanghai Chenxing Software Technology Co., Ltd. (“Chenxing”) Januray 2020 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 % Hainan Mengbang Network Technology Co., Ltd. (“Mengbang”) June 2021 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 Xunkai Information Technology Co., Ltd. (“Xunkai”) October 2019 PRC 100 % Huaian Beixia Information Technology Co., Ltd. (“Beixia”) November 2020 PRC 100 % Shanghai Yuanyin Information Technology Co., Ltd. (“Yuanyin”) April 2021 PRC 100 % Shanghai Kuaishen Information Technology Co., Ltd. (“Kuaishen”) April 2021 PRC 100 % Shanghai Guatian Network Technology Co., Ltd. (“Guatian”) June 2021 PRC 100 % Name of subsidiaries and VIEs Date of Place of Percentage of 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 Information Technology Co., Ltd. Shanghai Branch (“Jietu”) January 2020 PRC 100 % Shanghai Luoshi Software Technology Co., Ltd. (“Luoshi”) Januray 2020 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 % Shanghai Guanji Information Technology Co., Ltd. (“Guanji”) February 2021 PRC 100 % Shanghai Yimao Information Technology Co., Ltd. (“Yimao”) February 2021 PRC 100 % Shanghai Xier Information Technology Co., Ltd. (“Xier”) April 2021 PRC 100 % Shanghai Yixun Information Technology Co., Ltd. (“Yixun”) June 2021 PRC 100 % Hainan Jingxuan Information Technology Co., Ltd. (“Jingxuan”) June 2021 PRC 100 % Shanghai Chengshan Information Technology Co., Ltd. (“Chengshan”) March 2021 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 this agreement for the years ended December 31, 2020, 2021 and 2022 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 having the power to direct Jifen’s activities that most significantly drive the economic results of Jifen; • 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 1% equity interests held by The Paper represents a non-controlling |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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”). 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, adjust the pace of its operation expansion, control of the related expense to fund its general operations and capital expansion needs, and the ability to pursue financing arrangements and obtain additional funds from the sale of its assets to support its working capital requirements and its obligations and commitments on loans and borrowings when they become due. The following factors raise substantial doubt about the Group’s ability to continue as a going concern: • For the years ended December 31, 2020, 2021 and 2022, the Group incurred net losses of RMB1,105.2 million, RMB1,240.2 million and RMB914.8 million, respectively. • For the years ended December 31, 2020, 2021 and 2022, the Group had net cash used in operating activities of RMB863.8 million, RMB279.1 million and RMB443.8 million, respectively. • As of December 31, 2022, the Group had an accumulated deficit of RMB8,395.2 million and a deficit in working capital of RMB2,254.4 million. • As of December 31, 2022, the Group had cash, cash equivalents, restricted cash and short-term investments of RMB156.8 million. • As of December 31, 2022, as discussed in Note 14 and Note 26 to the consolidated financial statements, the Group has a Convertible Loan from Alibaba (“Convertible Loan”) of approximately RMB1.74 billion, including principal of US$171.1 million and unpaid interest that was expected to be matured within one year from the date of the issuance of the consolidated financial statements. The liquidity of the Group is primarily dependent on management’s ability to adjust the pace of its operation expansion, to control operating cost and expenses to reduce the cash used in operating cash flows, to pursue financing arrangements, including the renewal of its Convertible Loan with the creditor, and to obtain additional funds from the sale of its assets. The Company has carried out a review of its cash flow forecast for the twelve months from the date of issuance of the consolidated financial statements. In preparing the cash flow forecast, the Company’s management has considered historical cash requirements of the Group, the Group’s expected loan repayment obligations in 2023 and beyond, and the Company’s plan to further reduce operating costs and expenses. The Company is currently exploring a variety of measures to improve the Group’s liquidity and financial position as follows: The Company continues to optimize its user loyalty programs and traffic acquisition strategy to efficiently control and reduce costs and continues to be selective in their content and better leverage its existing content varieties to attract and maintain users. These measures can in turn lead to savings in user related costs. The Company further plans to preserve liquidity and manage cash flows by reducing expenditure on developing and maintaining smaller and novel applications and limiting other general and administrative expenses. The Company also plans to obtain additional external financing and funds through, including but not limited to, additional credit facilities obtained from banks in the normal course of business, potential additional issuances of equity and/ or debt as a Group or through its subsidiaries, and sale of its assets, including the Group’s equity interest in its subsidiaries, to third parties. The Convertible Loan had the original maturity date on April 4, 2022 (Note 14). The Company and Alibaba entered into several supplemental agreements to the original convertible loan agreement, pursuant to which the maturity date of the Convertible Loan has been extended to September 30, 2023. The interest rate of the Convertible Loan has also been amended from an original compound rate of 3% per annum to a compound rate of 9% per annum plus a simple rate of 3% per annum, calculated from the original loan drawdown date of April 4, 2019. The total amount of the principal and accumulated interest payable of the Convertible Loan, including the incremental interest related to the increase in interest rate under the supplemental agreements, will amount to approximately US$270.3 million as of September 30, 2023. While the Company cannot assure that it will be able to continue to renew the Convertible Loan in future, the Company has assumed that it will be able to extend and renew the Convertible Loan in preparing its cash flow forecast. Based on the management’s assessment, there can be no assurance, however, that the above operating measures will be successfully completed due to factors outside of the Company’s control. There can also be no assurance that new financing, additional funds from the sale of assets, extension of the maturity date of the Convertible Loan under the supplemental agreement, continuous renewal of the Convertible Loan, or other transactions will be available to the Company on commercially acceptable terms, or at all. In addition, the potential worsening global economic conditions may adversely impact the Group’s ability to secure additional financing. Facts and circumstances including accumulated and recurring losses from operations, net cash used in operating activities, negative working capital and uncertainties on the repayment of the Convertible Loan raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. 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, 2021 December 31, 2022 Assets Current assets Cash and cash equivalents 19,783 32,147 Restricted cash 13,160 7,384 Short-term investments 33,600 6,402 Accounts receivable, net 770,797 110,523 Amount due from subsidiaries of the Company 937,831 470,966 Amount due from related parties 259,863 48,284 Prepayments and other current assets 114,317 95,568 Total current assets 2,149,351 771,274 Non-current Property and equipment, net 12,828 5,002 Long-term investments 1,416 — Right-of-use 26,120 21,879 Intangible assets 99,582 6,574 Other non-current 2,164 1,426 Total non-current 142,110 34,881 Total assets 2,291,461 806,155 Liabilities Current liabilities Accounts payable 255,182 330,550 Amount due to subsidiaries of the Company 5,505,444 5,644,725 Amount due to related parties 1,495 — Registered users’ loyalty payable 55,392 29,773 Advance from customers and deferred revenue 122,594 11,963 Salary and welfare payable 42,237 28,048 Tax payable 15,288 29,584 Lease liabilities, current 11,675 15,083 Accrued liabilities related to users’ loyalty programs 99,360 64,589 Accrued liabilities and other current liabilities 1,299,057 301,713 Total current liabilities 7,407,724 6,456,028 Lease liabilities, non-current 15,985 7,599 Total liabilities 7,423,709 6,463,627 Year ended December 31, 2020 2021 2022 Revenues: Third-party revenues 5,238,682 4,336,388 828,341 Intra-Group revenues — 188,298 579,967 Total revenues 5,238,682 4,524,686 1,408,308 Cost of revenues: Third-party cost of revenue (1,476,216 ) (867,701 ) (446,189 ) Intra-Group cost of revenues (15,462 ) (18,959 ) (376,184 ) Total cost of revenues (1,491,678 ) (886,660 ) (822,373 ) Gross profit 3,792,004 3,638,026 585,935 Operating expenses: Third-party operating expenses (4,357,603 ) (4,067,548 ) (572,365 ) Intra-Group operating expenses (545,327 ) (951,702 ) (384,197 ) Total operating expenses (4,902,930 ) (5,019,250 ) (956,562 ) Other operating income 22,999 18,659 9,153 Loss from Operations (1,087,927 ) (1,362,565 ) (361,474 ) Non-operating (8,281 ) 22,282 (9,311 ) Loss before income tax expense (1,096,208 ) (1,340,283 ) (370,785 ) Income tax expense — (131 ) (54 ) Equity in loss of affiliate companies — (3,195 ) (1,416 ) Net loss (1,096,208 ) (1,343,609 ) (372,255 ) Year ended December 31, 2020 2021 2022 Net cash used in operating activities (391,007 ) (190,975 ) (22,037 ) Net cash provided by/(used in) investing activities (80,506 ) 63,047 28,625 Net cash provided by financing activities 512,233 84,471 — Net increase (decrease) in cash and cash equivalents 40,720 (43,457 ) 6,588 Cash and cash equivalents , restricted cash at the beginning of year 35,680 76,400 32,943 Cash and cash equivalents, restricted cash at the end of year 76,400 32,943 39,531 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, 2021 and 2022. 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. 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. 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, 2021 and December 31, 2022 were US$1.00= RMB6.3757 and RMB6.9646, respectively, representing the index rates stipulated by the People’s Bank of China. (e) Convenience Translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive loss and consolidated statement of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the readers and were calculated at the rate of US$1 = RMB6.8972, representing the noon buying rate set forth in the H.10 statistical release of the US Federal Reserve Board on December 31, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, 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, 2021 and 2022, 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 Convertible Loan approximated its carrying amount 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, 2021 Level 1 Level 2 Level 3 Balance at Assets Short-term investments — Wealth management products — 192,900 — 192,900 As of December 31, 2022 Level 1 Level 2 Level 3 Balance at Assets Short-term investments — Wealth management products — 26,402 — 26,402 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, 2022, restricted cash of RMB7.6 million represents the cash balance that was frozen in cooperation with previous investigation. As of this report date, RMB7.6 million was unfrozen. As of December 31, 2021, restricted cash of RMB75.5 million represents the cash balance that was frozen in cooperation with an ongoing investigation of two 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 and investments in wealth management products issued by certain banks which are redeemable by the Company at any time. 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, 2022, no allowance for credit losses in short-term investments was recorded. As of December 31, 2021, the short-term investments balance also includes nonmarketable equity securities that became redeemable within one year. Refer to Note 2(l) and Note 6 – Investments for additional information. In conjunction with one of the investigations mentioned in Note 2(h) above, short-term investment account balances amounting to RMB56.8 million were also frozen as of December 31, 2021. (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 – 5 years 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 • 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 recorded 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 investee. 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 include 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 As part of the Fun Series C Preferred Shares arrangement (see Note 21), the Company acquired intangible assets. For accounting purposes, the consideration was allocated to developed technology and user data. The acquired technology is amortized over 5 years and user data related assets is amortized over 3 years on a straight-line basis. The carrying value related to user data was fully amortized during 2022.(Note 10) 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. 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, 2021 and 2022, 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, 2020, 2021 and 2022 and there was no change in goodwill during 2021 and 2022. (n) Impairment of long-lived assets other than Goodwill For other long-lived assets including property and equipment, other 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, 2021 and 2022, the Company had short-term borrowings from one bank of RMB20.0 million and nil in aggregate. The annualized interest rates of this borrowing is approximately 3.7%. (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 The Group provide |
Significant Equity Transactions
Significant Equity Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Significant Equity Transactions And Acquisitions [Abstract] | |
Significant Equity Transactions | 3. Significant equity transactions (a) Follow-on On April 5, 2019, the Company completed a follow-on follow-on (b) 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. 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 1(b)). |
Risks and Concentration
Risks and Concentration | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Risks and Concentration | 4. Risks and Concentration (a) PRC regulations (1) VIEs It is possible that the Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. If a finding were made by PRC authorities that the Group’s operation of certain of its operations and businesses through VIEs is prohibited, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a severe adverse impact on the Group’s cash flows, financial position, and operating performance. In addition, it is possible that the contracts among the Group, the consolidated VIEs and the shareholders of such VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. As of the date of this report, the validity and enforceability of the contracts among the Group, the consolidated VIEs and the shareholders of such VIEs, and, to the knowledge of the Group, of any similar contracts entered into by other PRC-based The Group’s operations and businesses rely on the operations and businesses of its VIEs, which hold certain assets that are important to the operation of the Group’s business. The 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 Group’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. (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, 2020, 2021 and 2022, Customer A contributed 11%, 18% and 11% of total net revenue of the Group, respectively. (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, December 31, Customer A — advertising and marketing customer 22 % 29 % Customer B — advertising and marketing customer 11 % 14 % Customer C — advertising and marketing customer (related 14 % * * Less than 10% |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2022 | |
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 RMB4.1 million, RMB2.4 million and RMB1.4 million in the consolidated statements of comprehensive loss for the years ended December 31, 2020, 2021 and 2022. The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2021 and 2022: RMB thousands RMB thousands equivalent (US$) RMB thousands equivalent Total in RMB Overseas China Overseas China Overseas China Non VIE VIE Non VIE VIE Non VIE VIE December 31, 2021 80 11,570 19,783 102,565 89,494 — 16,859 — — 240,351 December 31, 2022 30,080 4,730 32,147 55,389 — — 455 — — 122,801 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Investments | 6. Investments As of December 31, 2021 and 2022, the Company’s short-term investments are comprised of the following: As of December 31, 2021 December 31, 2022 Time Deposits (maturity dates between 3 – 12 months) 105,199 — Wealth management products 192,900 26,402 Non-marketable 44,918 — Total short-term investments 343,017 26,402 For time deposits with original maturities between three months and a year, its interest income amounted to RMB6.3 million, RMB3.1 and RMB 1.3 million in the consolidated statements of comprehensive loss for the years ended December 31, 2020, 2021 and 2022, respectively. The change in fair value of short-term investments in wealth management products was recorded as investment income which amounted to RMB5.9 million, RMB9.0 million and RMB2.3 million for the years ended December 31, 2020, 2021 and 2022, respectively. During 2020, the Company invested RMB20.0 million in a publicly traded security listed on the Hong Kong Stock Exchange and the investment was sold in 2021. The unrealized gain (loss) for the security was recorded as investment income (loss) which amounted to RMB16.7 million and (RMB15.3 million) for the years ended December 31, 2020 and 2021. The Company’s investments in non-marketable equity securities consist of an investment in an equity fund. 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 period for another two years. The investment is measured under the NAV practical expedient. Unrealized losses of RMB54.4 million, RMB1.2 million and RMB50.5 million was recorded in investment income (loss) in the consolidated statements of comprehensive loss for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021, and 2022, the fair value of investments measured at NAV was RMB44.9 million and nil, respectively. As of December 31, 2021 and 2022, the Company’s long-term investment in equity securities are comprised of the following: As of December 31, 2021 December 31, 2022 Equity method investments 1,416 — Total long-term equity investments 1,416 — 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. During 2021, this equity method investment was fully impaired as the Company determined that it is unlikely their investment is recoverable due to the deterioration of the investment environment and capital market. During 2021, the Company deconsolidated one of its subsidiaries when a third-party investor purchased 60% of the subsidiary’s equity ownership. On the date the subsidiary was deconsolidated, the Company recorded the difference of RMB23.1 million between the fair value consideration received and the carrying value of the subsidiary’s net assets as a disposal gain in Other Income /(Expenses). The remaining 40% equity ownership in the subsidiary was recorded as an equity method investment. For the year end December 31, 2022, the Group recognized its share of loss of equity method investments in the amount of RMB1.4 million (2020 and 2021: share of loss of nil and RMB3.2 million, respectively). The Company’s investments in non-marketable equity securities primarily consist of an investment in an equity fund (see below) and small, non-controlling investments in companies for which the Company has equity ownership with preferential rights but cannot exert significant influence. During 2021, equity securities of RMB8.0 million without readily determinable fair value were either disposed or impaired and had nil |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 7. Accounts receivable, net As of December 31, 2021 December 31, 2022 Accounts receivable, gross – current 1,106,760 452,783 Less: allowance for credit losses (1) (335,841 ) (335,374 ) Accounts receivable, net 770,919 117,409 Movement of allowance for credit losses was as follows: Year ended December 31, 2020 2021 (1) 2022 At beginning of the period — (86,698 ) (335,841 ) ASC 326 Adoption impact (6,889 ) — — (Additional) reversal provisions (79,809 ) (249,143 ) 467 At the end of the period (86,698 ) (335,841 ) (335,374 ) (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, 2022 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepayments and Other Assets | 8. Prepayments and other assets Prepayment and other current assets consist of the following: As of December 31, 2021 December 31, 2022 Value-added tax receivable 79,009 102,453 Loans and advance to employees 1 14,934 11,583 Prepayments of IT service fee 1,042 10,881 Deposit to third-party advertising platforms 2 14,981 6,087 Deposit to third-party payment service providers 3 19,359 5,378 Prepayments of advertising fee (4) 4,216 4,352 Cooperation service fee – current portion (Note 3b) 1,532 1,674 Prepayment for the use of contents 5 17,512 1,665 Prepayments of business insurance 2,600 1,068 Lease deposits-current portion 5,646 876 Others 12,046 12,794 Total 172,877 158,811 Other non-current assets: Long-term cooperation service fee (Note 3b) 2,644 1,476 Long-term lease deposits 2,165 1,426 Total 4,809 2,902 (1) Loans to employees mainly represents loans to the employees to meet their personal needs for a period within one year. (2) 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. (3) Deposit to third party payment service providers represent cash prepaid to the Group’s third party on-line payment service providers, which will be used to settle the Group’s obligation for outstanding user loyalty payable or content procurement fee to professional third party media companies and freelancers. As of December 31, 2021 and 2022, no allowance for current expected credit losses was provided for the prepayment. (4) 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. (5) 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 to 12 months. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
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, December 31, Cost: Office equipment 20,445 11,843 Leasehold improvements 25,204 4,211 Total cost 45,649 16,054 Less: Accumulated depreciation (32,788 ) (11,041 ) Property and equipment, net 12,861 5,013 Depreciation expense recognized for the years ended December 31, 2020, 2021 and 2022 are summarized as follows: Year ended December 31, 2020 2021 2022 Cost of revenues 3,463 3,024 534 Research and development expenses 6,653 6,150 1,202 Sales and marketing expenses 974 622 249 General and administrative expenses 1,054 1,312 339 Total 12,144 11,108 2,324 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 10. Intangible assets, net Intangible assets consist of the following: As of December 31, December 31, Cost: Acquired user data 127,133 127,133 Acquired right to operate an online audio/video content platform including deferred tax liabilities impact 96,130 96,130 Computer software 12,290 12,290 Developed technology 9,000 9,000 Total cost 244,553 244,553 Less: Accumulated amortization (79,283 ) (181,904 ) Intangible assets, net 165,270 62,649 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. The Company also acquired intangible assets of RMB136.1 million. For accounting purposes, the consideration was allocated to developed technology and user data (Note 21). The transfer of the intangible assets was completed in January 2021. The acquired technology with amount of RMB9.0 million will be amortized over 5 years and user data related assets of RMB127.1 million will be amortized over 3 years on a straight-line basis. The carrying value related to user data as of December 31, 2022, amounting to RMB45.9 million, was fully amortized during 2022 due to changes in its monetization pattern. Amortization expense for intangible assets for the years ended December 31, 2020, 2021 and 2022 is as follows: Year ended December 31, 2020 2021 2022 Cost of revenues 9,613 9,613 9,613 Research and development expenses — 825 900 Sales and marketing expenses — 38,846 88,287 General and administrative expenses 3,413 4,815 3,821 Total 13,026 54,099 102,621 Future intangible asset amortization as of December 31, 2022 is as follows: Year ended December 31, Amortization Expense 2023 12,305 2024 11,437 2025 11,437 2026 9,787 2027 9,637 Thereafter 8,046 Total 62,649 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
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 2021 2022 Lease cost: Amortization of right-of-use 23,772 12,996 Interest of lease liabilities 1,873 1,232 Total lease cost 25,645 14,228 (b) Supplemental cash flow information related to leases was as follows: Year ended 2021 2022 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 22,122 13,327 Right-of-use 5,650 12,315 (c) Supplemental balance sheet information related to leases was as follows: Year ended 2021 2022 Operating leases Operating lease right-of-use 26,342 21,879 Operating lease liabilities, current (11,897 ) (15,083 ) Operating lease liabilities, non-current (15,985 ) (7,599 ) Total operating lease liabilities (27,882 ) (22,682 ) As of December 31, 2021 2022 Weighted-average remaining lease term Operating leases 2.1 years 1.5 years Weighted-average discount rate Operating leases 5.7 % 5.7 % (d) Maturities of lease liabilities were as follows: As of 2023 15,526 2024 7,853 Total undiscounted lease payments 23,379 Less: imputed interest (697 ) Total lease liabilities 22,682 (e) Future minimum lease payments for the Group’s operating leases were as follows: As of 2023 15,526 2024 7,853 23,379 |
Tax Payable
Tax Payable | 12 Months Ended |
Dec. 31, 2022 | |
Tax Payable [Abstract] | |
Tax Payable | 12. Tax payable As of December 31, 2021 December 31, 2022 Value added tax 23,868 29,014 Corporate income tax 6,916 8,595 Individual income tax withholding 10,651 2,406 Urban maintenance and construction tax 1,376 79 Stamp duty 1,068 380 Total 43,879 40,474 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, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other Liabilities | 13. Accrued liabilities and other liabilities As of December 31, December 31, Accrued liabilities and other current liabilities Accrued advertising and marketing expense 1,185,312 172,497 Tax surcharges and other fees (1) 134,821 133,471 Accrued professional service fees 5,876 6,368 Refund from depositary bank (2) 2,407 1,910 Others 6,187 22,016 1,334,603 336,262 Non-current Non-refundable (2) 1,733 — Total 1,336,336 336,262 (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, 2022 | |
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 matured on April 4, 2022 (the “Convertible Loan”). The Convertible Loan will bear interest at a rate of 3.00% 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 three years 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 thirty-eight (38) months after the initial drawdown of the loan or (ii) upon the occurrence of an event of default (as defined in the indenture agreement) at a conversion price of US$60.00 per ordinary share, subject to adjustment under the terms of the indenture agreement. The Company assessed the Convertible Loan under ASC 815 and concluded that: • Since the conversion option is considered indexed to the Company’s own stock, bifurcation of conversion option from the Convertible Loan is not required as the scope exception prescribed in ASC 815-10-15-74 • There was no BCF attribute to the Convertible Loan as the set conversion price for the Convertible Loan was greater than the fair value of the ordinary share price at date of issuance; Considering the above, the Company has accounted for the Convertible Loan in accordance with ASC 470 as a single instrument as a long-term liability; the value of the Convertible Loan was measured by the cash received of US$ 171.1 million (RMB1,147.0 million). The debt issuance cost was recorded as a reduction to the Convertible Loan and is amortized as interest expense using the effective interest method, over the term of the Convertible Loan. As of December 31, 2022, the carrying value of the Company’s Convertible Loan, including accrued interest of RMB587.6 million (2021:RMB92.4 million), was RMB1,746.2 million (2021:RMB1,183.0 million). Interest expenses recorded amounted to RMB36.8 million, RMB35.4 million and RMB468.4 million for the years ended December 31, 2020, 2021 and 2022, respectively. The Company and Alibaba entered in to several supplemental agreements to the original convertible loan agreement on December 25, 2021, March 28, 2022, April 29, 2022, November 7, 2022, and March 31, 2023 (see Note 26). According to the supplemental agreements, the Company paid interest amount to US$3.0 million in May 2022, US$1.5 million November, 2022, and US$1.5 million in March, 2023, respectively. |
Ordinary Share
Ordinary Share | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Ordinary Share | 15. 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 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. The trust does not hold any other assets or liabilities as at December 31, 2021 and 2022, nor earn any income nor incur any expenses for the years presented. Upon the completion of the IPO in 2018, 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 Effective December 10, 2021, the Company changed the ratio of ADSs to its Class A ordinary shares (the “ADS Ratio”) from the current ADS Ratio of four ADSs to one Class A ordinary share to a new ADS Ratio of two ADSs to five Class A ordinary shares. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 16. Share-based compensation Share option plan 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 RMB463.2 million, RMB200.2 million and RMB70.1 million for the years ended December 31, 2020, 2021 and 2022. The following table summarizes the share option activity for the years ended December 31, 2020, 2021 and 2022: Number of Weighted Weighted Aggregate Weighted RMB In Years RMB’000 RMB Outstanding at January 1, 2020 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 Granted 1,041,585 0.0007 46.77 Exercised (3,049,281 ) 0.0007 Forfeited (1,041,366 ) 0.0007 Outstanding at December 31, 2021 6,381,088 0.0007 6.5 45,236 47.97 Granted 170,953 0.0007 2.74 Exercised (355,745 ) 0.0007 Forfeited (154,835 ) 0.0007 Outstanding at December 31, 2022 6,041,461 0.0007 5.1 11,609 48.39 Vested and expected to vest at December 31, 2022 6,053,661 0.0007 5.1 11,632 47.02 Exercisable at December 31, 2022 5,682,238 0.0007 4.8 10,919 45.40 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 RMB41.50, RMB7.1 and RMB 1.9(US$0.28) at December 31, 2020, 2021 and 2022. The total fair value of share options vested during the years ended December 31, 2020, 2021 and 2022 was RMB346.5 million, RMB115.2million and RMB66.2 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2020, 2021 and 2022 were RMB265.2 million, RMB296.7 million and RMB22.2 million, respectively. As of December 31, 2022, there was RMB43.8 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 1.2 years, respectively. To the extent the actual forfeiture rate is different from the Company’s estimate, the actual share-based compensation related to these awards may be different from the expectation. The binomial option pricing model is used to determine the fair value of the share options granted to employees and non-employees. Options Granted Options Granted Options Granted Expected volatility 57.77%-58.65 % 60.31%-61.94 % 50.43%-52.00 % Risk-free interest rate 0.82%-1.09 % 1.66%-1.96 % 2.47%-4.10 % 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) 41.50-77.78 7.09-60.19 1.45-3.83 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. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Employee Benefits | 17. 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 RMB97.1 million, RMB98.7 million and RMB50.6 million for the years ended December 31, 2020, 2021 and 2022, 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, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 18. 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 2022 respectively, and is valid through 2024. 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. In 2020, the Company’s subsidiary, Chenxing, was approved the Software Enterprise Status. In accordance with PRC EIT Law, Chenxing is entitled to enjoy full income tax exemption for 2020 and 2021, and a preferential income tax rate of 12.5% for 2022 to 2024. Reconciliation of the differences between statutory tax 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, 2020 2021 2022 PRC Statutory income tax rates 25.0 % 25.0 % 25.0 % Change in valuation allowance (13.9 %) (16.9 %) (17.2 %) Permanent book — tax difference (9.2 %) (6.1 %) 4.1 % Difference in EIT rates of certain subsidiaries (2.2 %) (2.5 %) (12.0 %) Total (0.3 %) (0.5 %) (0.1 %) 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, 2020 2021 2022 Domestic 558,657 870,174 316,425 Foreign 547,517 363,757 597,974 Total 1,106,174 1,233,931 914,399 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, 2020 2021 2022 Current income tax expense 1,396 5,453 1,355 Deferred income tax benefit (2,404 ) (2,403 ) (2,403 ) Income tax expense (benefit) (1,008 ) 3,050 (1,048 ) 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, December 31, Deductible temporary difference to accruals and others 522,692 522,575 Tax losses carried forward 787,270 978,345 Less: Valuation allowance (1,309,962 ) (1,500,920 ) Total of deferred tax assets — — Taxable temporary difference related to acquired right to operate an online audio/video content platform 16,422 14,019 Total of deferred tax liabilities 16,422 14,019 Deferred tax liability of RMB14.0 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, 2020, 2021 and 2022, the PRC entities of the Group had tax loss carryforwards of approximately RMB2,409.4 million, RMB3,311.9 million and RMB4,434.5 million, respectively, which can be carried forward to offset taxable income. The carryforwards period for net operating losses under the EIT Law is five years. The net operating loss carryforwards of the Group will start to expire in varying amounts between 2023 and 2027. Other than the expiration, there are no other limitations or restrictions upon the Group’s ability to use these operating loss carryforwards. There is no expiration for the advertising expenses carryforwards. 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, 2021 and 2022, valuation allowances of RMB1,310.0 million and RMB1,500.9 million were provided because it was more likely than not that the Group will not be able to utilize certain tax losses carry forwards and other deferred tax assets generated by its subsidiaries and Affiliated Entities. If events occur in the future that allow the Group to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowances will increase income when those events occur. Movement of valuation allowance is as follows: Year ended December 31, 2020 2021 2022 Beginning balance 985,440 1,056,253 1,309,962 Current year additions 100,629 434,837 287,018 Current year reversals (29,816 ) (181,128 ) (96,060 ) Ending balance 1,056,253 1,309,962 1,500,920 |
Other Operating Income
Other Operating Income | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Income | 19. 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. This policy has further been extended to December 31, 2023. The Company obtained the relevant certificate in 2019 and recorded a benefit from the super deduction of RMB48.7 million, RMB33.1 million and RMB21.0 million in other operating income for the years ended December 31, 2020, 2021 and 2022, respectively. In 2020, 2021 and 2022, other operating income also included a VAT related refund of RMB30.0 million, RMB73.0 million and RMB40.8 million, respectively, which was recorded upon receipt. |
Other Income_(Expenses), Net
Other Income/(Expenses), Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income/(Expenses), Net | 20. Other Income/(Expenses), net In 2022, one of our material subsidiaries and one of the Key VIEs paid fines of RMB 82.8 In November 2022, one of our VIE has been ordered by local police to pay an amount of RMB10.0 million (US$1.4 million) in connection with investigation on alleged fraudulent conduct of an advertising agent which has placed advertisements on one of our mobile applications (Note 24(d)). In 2021, the Company deconsolidated one of its subsidiaries when a third-party investor purchased 60 23.1 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests And Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2022 | |
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) for an aggregate issuance price of US$14.0 million (RMB97.1 million). 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 for an aggregate issuance price of US$4.0 million (RMB27.5 million). 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 five years after the closing of the issuance by the holders in the event that (i) a qualified initial public offering has not occurred, or (ii) any material breach of representations and warranties, covenants or obligations made or borne by the Company that cause material adverse effect on any Fun preferred shareholders, or (iii) any the Company engages in willful or fraudulent misconducts that cause material adverse effect on any Fun preferred shareholders. The redemption need to be done within 60 days from the date on which the Fun preferred shareholders raise their written request. The redemption price equals initial investment plus 10% annual compound interests. 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 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. 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 transferred 4,643,603 of 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, 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) which for accounting purposes were allocated to 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. 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 performance-based share transfer feature 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. The performance-based transfer feature did not have material accounting impact and was expired in 2021 with no transfer of shares incurred. 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 years ended December 31, 2021 and 2022, the value of the call option was not material. The Company’s redeemable non-controlling Year ended December 31, 2020 2021 2022 Beginning balance 495,845 1,093,526 1,172,218 Issuance of Fun Preferred Shares, net of issuance costs 733,238 — — Foreign exchange impact (37,374 ) (30,034 ) 117,540 Repurchase of Series B Preferred Shares (146,460 ) — — Accretion to redemption value of redeemable non-controlling 48,277 108,726 124,677 Ending balance 1,093,526 1,172,218 1,414,435 (b) Non-controlling Non-controlling non-controlling non-controlling non-controlling non-controlling |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 22. Related party transactions For the years ended December 31, 2020, 2021 and 2022, the transactions and balance amount due to/from related parties was as follows: Transaction amount with related parties Year ended December 31, 2020 2021 2022 Services provided by the Group Advertising and marketing service provided to related parties (1) 250,875 40,263 2,451 Year ended December 31, 2020 2021 2022 Services received by the Group Advertisement costs charged from a related party (2) 29,206 103,275 14,564 Gaming cost sharing charged from a related party (3) 1,845 11 — Others advertising and promotional costs charged from a related party (4) 4,192 15,840 7,945 Balance amount with related parties As of December 31, December 31, Amount due from related parties (1) 259,863 48,802 Amount due to related parties (2)& (3) 6,928 592 (1) For the years ended December 31, 2020, 2021 and 2022, the service fee of RMB250.9 million, RMB39.8 million and RMB2.5 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, 2021 and 2022, the amounts due from related parties that pertains to accounts receivable from related party revenues generated was RMB246.5 million and RMB48.8 million respectively. Although the balance as of December 31, 2022 is overdue, 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. (2) 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 RMB29.2 million, RMB103.3 million and RMB14.6 million for the years ended December 31, 2020, 2021 and 2022, respectively. (3) In July 2019, the Company invested RMB3.0 million in a game developing company which the founder’s controlled entity has significant influence in. The investment was measured using the measurement alternative recorded at cost less any impairment since it does not have a readily determinable fair value. The investment was fully impaired as of December 31, 2021. (Note 6). In 2019 the Group entered into a game cooperation agreement with this company and the Group is the principal in the arrangement. The total service fee represents the amount paid to this company in relation to the arrangement. (4) For the years ended December 31, 2020, 2021 and 2022, the service fee charged from related parties represented the expense charged from companies under common control of the founder which provided the Group advertising and marketing related promotion services. |
Basic and Diluted Net Loss per
Basic and Diluted Net Loss per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss per Share | 23. 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, 2020, 2021 and 2022 as follows: Year ended Year ended Year ended Numerator: Net loss attributable to Qutoutiao Inc. (1,104,439 ) (1,239,617 ) (914,767 ) Accretion on redemption value of Series A convertible redeemable preferred shares of a subsidiary (Note 21) (13,509 ) (14,089 ) ( 15,947 ) Accretion on redemption value of Series B convertible redeemable preferred shares of a subsidiary (Note 21) (33,188 ) (21,726 ) (24,918 ) Accretion on redemption value of Series C convertible redeemable preferred shares of a subsidiary (Note 21) (1,580 ) (73,081 ) ( 83,812 ) Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) 14,842 — — Net loss attributable to ordinary shareholders-Basic and diluted (1,137,874 ) (1,348,513 ) (1,039,444 ) Denominator: Denominator for basic and diluted loss per share Weighted- average ordinary shares outstanding Basic and diluted 72,513,077 75,767,532 76,629,816 Basic and diluted loss per share (15.69 ) (17.80 ) (13.56 ) Denominator for basic and diluted loss per ADS Weighted-average ADS outstanding Basic and diluted 29,005,231 30,307,013 30,651,926 Basic and diluted loss per ADS (39.23 ) (44.50 ) (33.91 ) Note: (1) 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 6,141,679 (2,456,672 ADSs), 5,891,689 (2,356,676ADSs) and 5,699,256 (2,279,702ADSs) 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, 2020, 2021 and 2022, respectively. (2) On December 2, 2021, the Company announced its plans to change the ratio of its American Depositary Shares (“ADSs”) to its Class A ordinary shares (the “ADS Ratio”) from the current ADS Ratio of four (4) ADSs to one (1) Class A ordinary share to a new ADS Ratio of two (2) ADSs to five (5) Class A ordinary shares. The change in the ADS Ratio became effective on December 10, 2021. For all the periods presented, basic and diluted loss per ADS, including the contingently issuable shares mentioned in (1) above, have been revised assuming the change of ADS ratio from a ratio of four ADSs to one Class A ordinary share to a new Ratio of two ADSs to five Class A ordinary shares occurred at the beginning of the earliest period presented. Pursuant to ASC 260, “Earnings Per Share,” the effects of all other outstanding share options have been excluded from the computation of diluted loss per share for the years ended December 31, 2020, 2021 and 2022 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, 2020 2021 2022 Share options — weighted average 1,353,808 546,035 219,083 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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 Years Ending December 31, 2023 11,000 1,595 (b) Capital and other commitments As of December 31, 2022, future minimum payments under non-cancellable RMB US$ (Note 2 Years Ending December 31, 2023 188 27.26 (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. 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 In 2022, one of our material subsidiaries and one of the Key VIEs paid fines of RMB82.8 million in aggregate as a result of alleged fraudulent advertisements that an advertising customer placed on the Company’s online platform. (d) Contingency In November 2022, requested by the local police, one of our VIE paid an amount of RMB 10.0 million (US$1.4 million) in connection with investigation on alleged fraudulent conduct of an advertising agent which had placed advertisements on one of our mobile applications. The above mentioned payment had been recorded as other expense for the year ended December 31, 2022. Due to the uncertainties of the circumstances, the Company was unable to estimate the contingent liabilities or if there will be any. As of this report date, based on current stage of legal proceedings, such investigation will not have material impact on our subsequent financial statements. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent events (a) The Company and Alibaba entered into a supplemental agreement to the original convertible loan agreement on March 31, 2023, which has extended the maturity date to September 30, 2023. The Company has made several undertakings under the supplemental agreement dated March 31, 2023, including, among others, an undertaking to pay US$500,000 no later than June 30, 2023, and to further pay US$500,000 no later than September 30, 2023 as a part of the accrued interest of the Convertible Loan to Alibaba. (b) The lease contract for the Company’s office space in Shanghai, China was terminated in March, 2023. No penalty was charged for the early termination of contract. The Company signed a new 3-year lease contract starting from April, 2023 with the same lessor, and moved to another building in the same software park from Building No.8 to Building No. 2. The average lease payment changed from RMB569.8 thousand per month to RMB186.3 thousand per month. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 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, 2021 December 31, 2022 RMB RMB US$ (Note 2(e)) ASSETS Current assets: Cash and cash equivalents 19,633 50,989 7,393 Amount due from subsidiaries and VIEs of the Company 3,521,857 3,698,706 536,262 Prepayments and other current assets 4,605 2,935 425 Total current assets 3,546,095 3,752,630 544,080 Other non-current 2,645 1,476 214 Total non-current 2,645 1,476 214 Total assets 3,548,740 3,754,106 544,294 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Accrued expenses and other current liabilities 3,312 978 143 Amounts due to subsidiaries and VIEs of the Company 281,201 181,598 26,329 Convertible loan—current 1,182,963 1,746,188 253,173 Total current liabilities 1,467,476 1,928,764 279,645 Non-current Other non-current 1,733 — — Investment deficit of subsidiaries and VIEs 4,469,087 5,416,081 785,258 Total non-current 4,470,820 5,416,081 785,258 Total liabilities 5,938,296 7,344,845 1,064,903 Shareholders’ deficit: Class A ordinary shares (US$0.0001 par value, 50,000,000 shares authorized as of December 31, 2021 and 2022; 42,812,245 shares issued as of December 31, 2021 and 2022; 38,370,892 and 38,726,637 shares outstanding as of December 31, 2021 and 2022) 26 26 4 Class B ordinary shares (US$0.0001 par value; 34,248,442 shares authorized as of December 31, 2021 and 2022; 32,937,193 shares issued and outstanding as of December 31, 2021 and 2022) 24 24 3 Additional paid-in 4,979,353 5,049,458 732,103 Treasury stock (US$0.0001 par value; 4,441,353 and 4,085,608 shares as of December 31, 2021 and 2022, respectively) (142,229 ) (142,229 ) (20,621 ) Accumulated other comprehensive loss 129,010 (102,834 ) (14,911 ) Accumulated deficit (7,355,740 ) (8,395,184 ) (1,217,187 ) Total shareholders’ deficit (2,389,556 ) (3,590,739 ) (520,609 ) Total liabilities and shareholders’ deficit 3,548,740 3,754,106 544,294 STATEMENTS OF COMPREHENSIVE LOSS Year ended December 31, 2020 2021 2022 RMB RMB RMB US$ (Note 2(e)) Operating expenses: General and administrative (471,730 ) (208,594 ) (77,185 ) (11,191 ) Total operating expenses (471,730 ) (208,594 ) (77,185 ) (11,191 ) Loss from operations (471,730 ) (208,594 ) (77,185 ) (11,191 ) Investment loss — (27,589 ) — — Interest income 2,819 — 585 85 Interest expense (36,774 ) (30,683 ) (468,358 ) (67,906 ) Foreign exchange related gains, net (7 ) — (220 ) (34 ) Other expenses, net (42 ) (41 ) (42 ) (6 ) Loss from subsidiaries and VIEs (598,705 ) (972,710 ) (369,547 ) (53,578 ) Loss before provision for income taxes (1,104,439 ) (1,239,617 ) (914,767 ) (132,630 ) Net loss (1,104,439 ) (1,239,617 ) (914,767 ) (132,630 ) Accretion to redemption value of convertible redeemable preferred shares of a subsidiary (48,277 ) (108,896 ) (124,677 ) (18,076 ) Gains on repurchase of convertible redeemable preferred shares of a subsidiary 14,842 — — — Net loss attributable to ordinary shareholders (1,137,874 ) (1,348,513 ) (1,039,444 ) (150,706 ) Net loss (1,104,439 ) (1,239,617 ) (914,767 ) (132,630 ) Foreign currency translation adjustment, net of nil tax 102,254 44,690 (231,844 ) (33,614 ) Comprehensive loss (1,002,185 ) (1,194,927 ) (1,146,611 ) (166,244 ) STATEMENTS OF CASH FLOWS Year ended December 31, 2020 2021 2022 RMB RMB RMB US$ (Note 2(e)) Cash flows used in operating activities (354 ) (14,807 ) (39,578 ) (5,738 ) Cash flows (used in)/provided by investing activities (10,008 ) (32,506 ) 68,089 9,872 Cash flows used in financing activities (135,744 ) — — — Effect of exchange rate changes on cash and cash equivalents (240 ) 1 2,845 412 Net increase in cash and cash equivalents (146,346 ) 17,700 31,356 4,546 Cash and cash equivalents, beginning of year 148,279 1,933 19,633 2,847 Cash and cash equivalents, end of year 1,933 19,633 50,989 7,393 |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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”). 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, adjust the pace of its operation expansion, control of the related expense to fund its general operations and capital expansion needs, and the ability to pursue financing arrangements and obtain additional funds from the sale of its assets to support its working capital requirements and its obligations and commitments on loans and borrowings when they become due. The following factors raise substantial doubt about the Group’s ability to continue as a going concern: • For the years ended December 31, 2020, 2021 and 2022, the Group incurred net losses of RMB1,105.2 million, RMB1,240.2 million and RMB914.8 million, respectively. • For the years ended December 31, 2020, 2021 and 2022, the Group had net cash used in operating activities of RMB863.8 million, RMB279.1 million and RMB443.8 million, respectively. • As of December 31, 2022, the Group had an accumulated deficit of RMB8,395.2 million and a deficit in working capital of RMB2,254.4 million. • As of December 31, 2022, the Group had cash, cash equivalents, restricted cash and short-term investments of RMB156.8 million. • As of December 31, 2022, as discussed in Note 14 and Note 26 to the consolidated financial statements, the Group has a Convertible Loan from Alibaba (“Convertible Loan”) of approximately RMB1.74 billion, including principal of US$171.1 million and unpaid interest that was expected to be matured within one year from the date of the issuance of the consolidated financial statements. The liquidity of the Group is primarily dependent on management’s ability to adjust the pace of its operation expansion, to control operating cost and expenses to reduce the cash used in operating cash flows, to pursue financing arrangements, including the renewal of its Convertible Loan with the creditor, and to obtain additional funds from the sale of its assets. The Company has carried out a review of its cash flow forecast for the twelve months from the date of issuance of the consolidated financial statements. In preparing the cash flow forecast, the Company’s management has considered historical cash requirements of the Group, the Group’s expected loan repayment obligations in 2023 and beyond, and the Company’s plan to further reduce operating costs and expenses. The Company is currently exploring a variety of measures to improve the Group’s liquidity and financial position as follows: The Company continues to optimize its user loyalty programs and traffic acquisition strategy to efficiently control and reduce costs and continues to be selective in their content and better leverage its existing content varieties to attract and maintain users. These measures can in turn lead to savings in user related costs. The Company further plans to preserve liquidity and manage cash flows by reducing expenditure on developing and maintaining smaller and novel applications and limiting other general and administrative expenses. The Company also plans to obtain additional external financing and funds through, including but not limited to, additional credit facilities obtained from banks in the normal course of business, potential additional issuances of equity and/ or debt as a Group or through its subsidiaries, and sale of its assets, including the Group’s equity interest in its subsidiaries, to third parties. The Convertible Loan had the original maturity date on April 4, 2022 (Note 14). The Company and Alibaba entered into several supplemental agreements to the original convertible loan agreement, pursuant to which the maturity date of the Convertible Loan has been extended to September 30, 2023. The interest rate of the Convertible Loan has also been amended from an original compound rate of 3% per annum to a compound rate of 9% per annum plus a simple rate of 3% per annum, calculated from the original loan drawdown date of April 4, 2019. The total amount of the principal and accumulated interest payable of the Convertible Loan, including the incremental interest related to the increase in interest rate under the supplemental agreements, will amount to approximately US$270.3 million as of September 30, 2023. While the Company cannot assure that it will be able to continue to renew the Convertible Loan in future, the Company has assumed that it will be able to extend and renew the Convertible Loan in preparing its cash flow forecast. Based on the management’s assessment, there can be no assurance, however, that the above operating measures will be successfully completed due to factors outside of the Company’s control. There can also be no assurance that new financing, additional funds from the sale of assets, extension of the maturity date of the Convertible Loan under the supplemental agreement, continuous renewal of the Convertible Loan, or other transactions will be available to the Company on commercially acceptable terms, or at all. In addition, the potential worsening global economic conditions may adversely impact the Group’s ability to secure additional financing. Facts and circumstances including accumulated and recurring losses from operations, net cash used in operating activities, negative working capital and uncertainties on the repayment of the Convertible Loan raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. 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, 2021 December 31, 2022 Assets Current assets Cash and cash equivalents 19,783 32,147 Restricted cash 13,160 7,384 Short-term investments 33,600 6,402 Accounts receivable, net 770,797 110,523 Amount due from subsidiaries of the Company 937,831 470,966 Amount due from related parties 259,863 48,284 Prepayments and other current assets 114,317 95,568 Total current assets 2,149,351 771,274 Non-current Property and equipment, net 12,828 5,002 Long-term investments 1,416 — Right-of-use 26,120 21,879 Intangible assets 99,582 6,574 Other non-current 2,164 1,426 Total non-current 142,110 34,881 Total assets 2,291,461 806,155 Liabilities Current liabilities Accounts payable 255,182 330,550 Amount due to subsidiaries of the Company 5,505,444 5,644,725 Amount due to related parties 1,495 — Registered users’ loyalty payable 55,392 29,773 Advance from customers and deferred revenue 122,594 11,963 Salary and welfare payable 42,237 28,048 Tax payable 15,288 29,584 Lease liabilities, current 11,675 15,083 Accrued liabilities related to users’ loyalty programs 99,360 64,589 Accrued liabilities and other current liabilities 1,299,057 301,713 Total current liabilities 7,407,724 6,456,028 Lease liabilities, non-current 15,985 7,599 Total liabilities 7,423,709 6,463,627 Year ended December 31, 2020 2021 2022 Revenues: Third-party revenues 5,238,682 4,336,388 828,341 Intra-Group revenues — 188,298 579,967 Total revenues 5,238,682 4,524,686 1,408,308 Cost of revenues: Third-party cost of revenue (1,476,216 ) (867,701 ) (446,189 ) Intra-Group cost of revenues (15,462 ) (18,959 ) (376,184 ) Total cost of revenues (1,491,678 ) (886,660 ) (822,373 ) Gross profit 3,792,004 3,638,026 585,935 Operating expenses: Third-party operating expenses (4,357,603 ) (4,067,548 ) (572,365 ) Intra-Group operating expenses (545,327 ) (951,702 ) (384,197 ) Total operating expenses (4,902,930 ) (5,019,250 ) (956,562 ) Other operating income 22,999 18,659 9,153 Loss from Operations (1,087,927 ) (1,362,565 ) (361,474 ) Non-operating (8,281 ) 22,282 (9,311 ) Loss before income tax expense (1,096,208 ) (1,340,283 ) (370,785 ) Income tax expense — (131 ) (54 ) Equity in loss of affiliate companies — (3,195 ) (1,416 ) Net loss (1,096,208 ) (1,343,609 ) (372,255 ) Year ended December 31, 2020 2021 2022 Net cash used in operating activities (391,007 ) (190,975 ) (22,037 ) Net cash provided by/(used in) investing activities (80,506 ) 63,047 28,625 Net cash provided by financing activities 512,233 84,471 — Net increase (decrease) in cash and cash equivalents 40,720 (43,457 ) 6,588 Cash and cash equivalents , restricted cash at the beginning of year 35,680 76,400 32,943 Cash and cash equivalents, restricted cash at the end of year 76,400 32,943 39,531 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, 2021 and 2022. 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. 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. 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, 2021 and December 31, 2022 were US$1.00= RMB6.3757 and RMB6.9646, respectively, representing the index rates stipulated by the People’s Bank of China. |
Convenience Translation | (e) Convenience Translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive loss and consolidated statement of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the readers and were calculated at the rate of US$1 = RMB6.8972, representing the noon buying rate set forth in the H.10 statistical release of the US Federal Reserve Board on December 31, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, 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, 2021 and 2022, 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 Convertible Loan approximated its carrying amount 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, 2021 Level 1 Level 2 Level 3 Balance at Assets Short-term investments — Wealth management products — 192,900 — 192,900 As of December 31, 2022 Level 1 Level 2 Level 3 Balance at Assets Short-term investments — Wealth management products — 26,402 — 26,402 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, 2022, restricted cash of RMB7.6 million represents the cash balance that was frozen in cooperation with previous investigation. As of this report date, RMB7.6 million was unfrozen. As of December 31, 2021, restricted cash of RMB75.5 million represents the cash balance that was frozen in cooperation with an ongoing investigation of two 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 and investments in wealth management products issued by certain banks which are redeemable by the Company at any time. 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, 2022, no allowance for credit losses in short-term investments was recorded. As of December 31, 2021, the short-term investments balance also includes nonmarketable equity securities that became redeemable within one year. Refer to Note 2(l) and Note 6 – Investments for additional information. In conjunction with one of the investigations mentioned in Note 2(h) above, short-term investment account balances amounting to RMB56.8 million were also frozen as of December 31, 2021. |
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 – 5 years 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 • 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 recorded 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 investee. 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 include 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 As part of the Fun Series C Preferred Shares arrangement (see Note 21), the Company acquired intangible assets. For accounting purposes, the consideration was allocated to developed technology and user data. The acquired technology is amortized over 5 years and user data related assets is amortized over 3 years on a straight-line basis. The carrying value related to user data was fully amortized during 2022.(Note 10) 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. 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, 2021 and 2022, 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, 2020, 2021 and 2022 and there was no change in goodwill during 2021 and 2022. |
Impairment of long-lived assets other than Goodwill | (n) Impairment of long-lived assets other than Goodwill For other long-lived assets including property and equipment, other 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, 2021 and 2022, the Company had short-term borrowings from one bank of RMB20.0 million and nil in aggregate. The annualized interest rates of this borrowing is approximately 3.7%. |
Advances from customers and deferred revenue | (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 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. 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. 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 integrated 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 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 or clicks are successfully delivered. 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 years ended December 31, 2020, 2021 and 2022, 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. C. Disaggregation of revenue In the following table, revenue is disaggregated by major service line and gross vs net recognition. Year ended December 31, 2020 2021 2022 RMB RMB RMB US$ Major service line Advertising service provided to advertising customers, recorded gross (1) 3,857,233 2,533,327 404,443 58,638 Advertising service provided to advertising platforms, recorded net 1,189,602 1,557,056 434,934 63,060 Other service Agent and platform services 7,904 22,004 4,355 631 Live streaming and online games 193,141 140,269 195,213 28,303 Other revenues 37,315 86,947 44,100 6,394 Total Other services 238,360 249,220 243,668 35,328 Net Revenues 5,285,195 4,339,603 1,083,045 157,026 (1) For the years ended December 31, 2020, 2021 and 2022 revenue in advertising services provided to advertising customers which recorded gross include integrated marketing solution services which amounted to RMB248.2 million, RMB39.8 million and nil. |
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 expenses | (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, 2020, 2021 and 2022, 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 1,728.1 million, RMB2,662.0 million and RMB234.0 million during the years ended December 31, 2020, 2021 and 2022, 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. |
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, 2022, 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, 2021 and 2022, users’ reward recorded in “Registered users’ loyalty payable” were RMB61.7 million and RMB29.8 million, respectively, and estimated users’ rewards recorded in “Accrued liabilities related to users’ loyalty programs” were RMB99.4 million and RMB64.6 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, 2020, 2021 and 2022. As of December 31, 2021 and 2022, 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, from time to time over the next 12 months. For the year ended December 31, 2019, 1,166,425 ordinary shares were repurchased and held in treasury stock with a total consideration of RMB142.2 million. No additional shares were repurchased during 2020, 2021 or 2022. As of December 31, 2022, 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, |
Government grants | (ab) Government grants Government grants are recognized as other income/ (expenses) when received. For the years ended December 31, 2020, 2021 and 2022, the Group received financial subsidies of RMB5.8 million, RMB7.2 million and RMB4.5 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, 2020, 2021 and 2022, 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 upon the conversion of the stock options, using the treasury stock method. Except for voting rights, the Class A and Class B ordinary shares have all the same rights and therefore the loss per share for both classes of shares are identical. |
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 accounting pronouncements | (ai) Recent Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which provides guidance on the acquirer’s accounting for acquired revenue contracts with customers in a business combination. The amendments require an acquirer to recognize and measures contract assets and contract liabilities acquired in a business combination at the acquisition date in accordance with ASC 606 as if it had originated the contracts. This guidance also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The new guidance is required to be applied prospectively to business combinations occurring on or after the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Group does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. The Group does not expect that the adoption of this guidance will have a material impact on its financial position, results of operations and cash flows. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Principal Subsidiaries and Consolidated Affiliated Entities | As of December 31, 2022, the Company’s principal subsidiaries and consolidated Affiliated Entities are as follows: Name of subsidiaries and VIEs Date of Place of Percentage of 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 65 % 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 % Kubik Media International Ltd. (“Kubik Media”) May 2018 BVI 100 % Kubik Technology Pte., Ltd. (“Kubik Technology”) May 2018 Singapore 100 % PT. Sedjahtera Inti Abadi (“Abadi”) October 2018 Indonesia 100 % AI-Fun Technology Limited (“AI-Fun”) January 2019 Hong Kong 100 % Fun-Platform Holdings Limited (“Fun-Platform”) January 2019 Cayman 100 % Striking Technology Holdings limited (“Striking”) January 2019 Hong Kong 100 % Fun Literature SG Pte. Ltd. (“Fun SG”) February 2021 Singapore 100 % Shanghai Zhicao Information Technology Co., Ltd. (“Zhicao WFOE”) December 2018 PRC 100 % Shanghai Chenxing Software Technology Co., Ltd. (“Chenxing”) Januray 2020 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 % Hainan Mengbang Network Technology Co., Ltd. (“Mengbang”) June 2021 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 Xunkai Information Technology Co., Ltd. (“Xunkai”) October 2019 PRC 100 % Huaian Beixia Information Technology Co., Ltd. (“Beixia”) November 2020 PRC 100 % Shanghai Yuanyin Information Technology Co., Ltd. (“Yuanyin”) April 2021 PRC 100 % Shanghai Kuaishen Information Technology Co., Ltd. (“Kuaishen”) April 2021 PRC 100 % Shanghai Guatian Network Technology Co., Ltd. (“Guatian”) June 2021 PRC 100 % Name of subsidiaries and VIEs Date of Place of Percentage of 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 Information Technology Co., Ltd. Shanghai Branch (“Jietu”) January 2020 PRC 100 % Shanghai Luoshi Software Technology Co., Ltd. (“Luoshi”) Januray 2020 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 % Shanghai Guanji Information Technology Co., Ltd. (“Guanji”) February 2021 PRC 100 % Shanghai Yimao Information Technology Co., Ltd. (“Yimao”) February 2021 PRC 100 % Shanghai Xier Information Technology Co., Ltd. (“Xier”) April 2021 PRC 100 % Shanghai Yixun Information Technology Co., Ltd. (“Yixun”) June 2021 PRC 100 % Hainan Jingxuan Information Technology Co., Ltd. (“Jingxuan”) June 2021 PRC 100 % Shanghai Chengshan Information Technology Co., Ltd. (“Chengshan”) March 2021 PRC 100 % |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021 December 31, 2022 Assets Current assets Cash and cash equivalents 19,783 32,147 Restricted cash 13,160 7,384 Short-term investments 33,600 6,402 Accounts receivable, net 770,797 110,523 Amount due from subsidiaries of the Company 937,831 470,966 Amount due from related parties 259,863 48,284 Prepayments and other current assets 114,317 95,568 Total current assets 2,149,351 771,274 Non-current Property and equipment, net 12,828 5,002 Long-term investments 1,416 — Right-of-use 26,120 21,879 Intangible assets 99,582 6,574 Other non-current 2,164 1,426 Total non-current 142,110 34,881 Total assets 2,291,461 806,155 Liabilities Current liabilities Accounts payable 255,182 330,550 Amount due to subsidiaries of the Company 5,505,444 5,644,725 Amount due to related parties 1,495 — Registered users’ loyalty payable 55,392 29,773 Advance from customers and deferred revenue 122,594 11,963 Salary and welfare payable 42,237 28,048 Tax payable 15,288 29,584 Lease liabilities, current 11,675 15,083 Accrued liabilities related to users’ loyalty programs 99,360 64,589 Accrued liabilities and other current liabilities 1,299,057 301,713 Total current liabilities 7,407,724 6,456,028 Lease liabilities, non-current 15,985 7,599 Total liabilities 7,423,709 6,463,627 Year ended December 31, 2020 2021 2022 Revenues: Third-party revenues 5,238,682 4,336,388 828,341 Intra-Group revenues — 188,298 579,967 Total revenues 5,238,682 4,524,686 1,408,308 Cost of revenues: Third-party cost of revenue (1,476,216 ) (867,701 ) (446,189 ) Intra-Group cost of revenues (15,462 ) (18,959 ) (376,184 ) Total cost of revenues (1,491,678 ) (886,660 ) (822,373 ) Gross profit 3,792,004 3,638,026 585,935 Operating expenses: Third-party operating expenses (4,357,603 ) (4,067,548 ) (572,365 ) Intra-Group operating expenses (545,327 ) (951,702 ) (384,197 ) Total operating expenses (4,902,930 ) (5,019,250 ) (956,562 ) Other operating income 22,999 18,659 9,153 Loss from Operations (1,087,927 ) (1,362,565 ) (361,474 ) Non-operating (8,281 ) 22,282 (9,311 ) Loss before income tax expense (1,096,208 ) (1,340,283 ) (370,785 ) Income tax expense — (131 ) (54 ) Equity in loss of affiliate companies — (3,195 ) (1,416 ) Net loss (1,096,208 ) (1,343,609 ) (372,255 ) Year ended December 31, 2020 2021 2022 Net cash used in operating activities (391,007 ) (190,975 ) (22,037 ) Net cash provided by/(used in) investing activities (80,506 ) 63,047 28,625 Net cash provided by financing activities 512,233 84,471 — Net increase (decrease) in cash and cash equivalents 40,720 (43,457 ) 6,588 Cash and cash equivalents , restricted cash at the beginning of year 35,680 76,400 32,943 Cash and cash equivalents, restricted cash at the end of year 76,400 32,943 39,531 |
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, 2021 Level 1 Level 2 Level 3 Balance at Assets Short-term investments — Wealth management products — 192,900 — 192,900 As of December 31, 2022 Level 1 Level 2 Level 3 Balance at Assets Short-term investments — Wealth management products — 26,402 — 26,402 |
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 – 5 years |
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, 2020 2021 2022 RMB RMB RMB US$ Major service line Advertising service provided to advertising customers, recorded gross (1) 3,857,233 2,533,327 404,443 58,638 Advertising service provided to advertising platforms, recorded net 1,189,602 1,557,056 434,934 63,060 Other service Agent and platform services 7,904 22,004 4,355 631 Live streaming and online games 193,141 140,269 195,213 28,303 Other revenues 37,315 86,947 44,100 6,394 Total Other services 238,360 249,220 243,668 35,328 Net Revenues 5,285,195 4,339,603 1,083,045 157,026 (1) For the years ended December 31, 2020, 2021 and 2022 revenue in advertising services provided to advertising customers which recorded gross include integrated marketing solution services which amounted to RMB248.2 million, RMB39.8 million and nil. |
Risks and Concentration (Tables
Risks and Concentration (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, December 31, Customer A — advertising and marketing customer 22 % 29 % Customer B — advertising and marketing customer 11 % 14 % Customer C — advertising and marketing customer (related 14 % * * Less than 10% |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2021 and 2022: RMB thousands RMB thousands equivalent (US$) RMB thousands equivalent Total in RMB Overseas China Overseas China Overseas China Non VIE VIE Non VIE VIE Non VIE VIE December 31, 2021 80 11,570 19,783 102,565 89,494 — 16,859 — — 240,351 December 31, 2022 30,080 4,730 32,147 55,389 — — 455 — — 122,801 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Summary of Short-Term Investments | As of December 31, 2021 and 2022, the Company’s short-term investments are comprised of the following: As of December 31, 2021 December 31, 2022 Time Deposits (maturity dates between 3 – 12 months) 105,199 — Wealth management products 192,900 26,402 Non-marketable 44,918 — Total short-term investments 343,017 26,402 |
Summary of Long-Term Investment | As of December 31, 2021 and 2022, the Company’s long-term investment in equity securities are comprised of the following: As of December 31, 2021 December 31, 2022 Equity method investments 1,416 — Total long-term equity investments 1,416 — |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | As of December 31, 2021 December 31, 2022 Accounts receivable, gross – current 1,106,760 452,783 Less: allowance for credit losses (1) (335,841 ) (335,374 ) Accounts receivable, net 770,919 117,409 |
Schedule of Allowance for Credit Losses | Movement of allowance for credit losses was as follows: Year ended December 31, 2020 2021 (1) 2022 At beginning of the period — (86,698 ) (335,841 ) ASC 326 Adoption impact (6,889 ) — — (Additional) reversal provisions (79,809 ) (249,143 ) 467 At the end of the period (86,698 ) (335,841 ) (335,374 ) (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, 2022 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets | Prepayment and other current assets consist of the following: As of December 31, 2021 December 31, 2022 Value-added tax receivable 79,009 102,453 Loans and advance to employees 1 14,934 11,583 Prepayments of IT service fee 1,042 10,881 Deposit to third-party advertising platforms 2 14,981 6,087 Deposit to third-party payment service providers 3 19,359 5,378 Prepayments of advertising fee (4) 4,216 4,352 Cooperation service fee – current portion (Note 3b) 1,532 1,674 Prepayment for the use of contents 5 17,512 1,665 Prepayments of business insurance 2,600 1,068 Lease deposits-current portion 5,646 876 Others 12,046 12,794 Total 172,877 158,811 Other non-current assets: Long-term cooperation service fee (Note 3b) 2,644 1,476 Long-term lease deposits 2,165 1,426 Total 4,809 2,902 (1) Loans to employees mainly represents loans to the employees to meet their personal needs for a period within one year. (2) 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. (3) Deposit to third party payment service providers represent cash prepaid to the Group’s third party on-line payment service providers, which will be used to settle the Group’s obligation for outstanding user loyalty payable or content procurement fee to professional third party media companies and freelancers. As of December 31, 2021 and 2022, no allowance for current expected credit losses was provided for the prepayment. (4) 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. (5) 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 to 12 months. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: As of December 31, December 31, Cost: Office equipment 20,445 11,843 Leasehold improvements 25,204 4,211 Total cost 45,649 16,054 Less: Accumulated depreciation (32,788 ) (11,041 ) Property and equipment, net 12,861 5,013 |
Summary of Depreciation Expense | Depreciation expense recognized for the years ended December 31, 2020, 2021 and 2022 are summarized as follows: Year ended December 31, 2020 2021 2022 Cost of revenues 3,463 3,024 534 Research and development expenses 6,653 6,150 1,202 Sales and marketing expenses 974 622 249 General and administrative expenses 1,054 1,312 339 Total 12,144 11,108 2,324 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: As of December 31, December 31, Cost: Acquired user data 127,133 127,133 Acquired right to operate an online audio/video content platform including deferred tax liabilities impact 96,130 96,130 Computer software 12,290 12,290 Developed technology 9,000 9,000 Total cost 244,553 244,553 Less: Accumulated amortization (79,283 ) (181,904 ) Intangible assets, net 165,270 62,649 |
Summary of Amortization Expense | Amortization expense for intangible assets for the years ended December 31, 2020, 2021 and 2022 is as follows: Year ended December 31, 2020 2021 2022 Cost of revenues 9,613 9,613 9,613 Research and development expenses — 825 900 Sales and marketing expenses — 38,846 88,287 General and administrative expenses 3,413 4,815 3,821 Total 13,026 54,099 102,621 |
Summary of Future intangible asset amortization | Future intangible asset amortization as of December 31, 2022 is as follows: Year ended December 31, Amortization Expense 2023 12,305 2024 11,437 2025 11,437 2026 9,787 2027 9,637 Thereafter 8,046 Total 62,649 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of components of lease expenses | (a) The components of lease expenses were as follows: Year ended 2021 2022 Lease cost: Amortization of right-of-use 23,772 12,996 Interest of lease liabilities 1,873 1,232 Total lease cost 25,645 14,228 |
Schedule of Supplemental Cash Flow information Related to Leases | (b) Supplemental cash flow information related to leases was as follows: Year ended 2021 2022 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 22,122 13,327 Right-of-use 5,650 12,315 |
Schedule of Supplemental BaIance Sheet information Related to Leases | (c) Supplemental balance sheet information related to leases was as follows: Year ended 2021 2022 Operating leases Operating lease right-of-use 26,342 21,879 Operating lease liabilities, current (11,897 ) (15,083 ) Operating lease liabilities, non-current (15,985 ) (7,599 ) Total operating lease liabilities (27,882 ) (22,682 ) As of December 31, 2021 2022 Weighted-average remaining lease term Operating leases 2.1 years 1.5 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 2023 15,526 2024 7,853 Total undiscounted lease payments 23,379 Less: imputed interest (697 ) Total lease liabilities 22,682 |
Schedule of Future Minimum Payments under Non-cancellable Operating Leases for Office Rental | (e) Future minimum lease payments for the Group’s operating leases were as follows: As of 2023 15,526 2024 7,853 23,379 |
Tax Payable (Tables)
Tax Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Tax Payable [Abstract] | |
Schedule of Tax Payable | As of December 31, 2021 December 31, 2022 Value added tax 23,868 29,014 Corporate income tax 6,916 8,595 Individual income tax withholding 10,651 2,406 Urban maintenance and construction tax 1,376 79 Stamp duty 1,068 380 Total 43,879 40,474 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Liabilities | As of December 31, December 31, Accrued liabilities and other current liabilities Accrued advertising and marketing expense 1,185,312 172,497 Tax surcharges and other fees (1) 134,821 133,471 Accrued professional service fees 5,876 6,368 Refund from depositary bank (2) 2,407 1,910 Others 6,187 22,016 1,334,603 336,262 Non-current Non-refundable (2) 1,733 — Total 1,336,336 336,262 (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, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Share Option Activity | The following table summarizes the share option activity for the years ended December 31, 2020, 2021 and 2022: Number of Weighted Weighted Aggregate Weighted RMB In Years RMB’000 RMB Outstanding at January 1, 2020 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 Granted 1,041,585 0.0007 46.77 Exercised (3,049,281 ) 0.0007 Forfeited (1,041,366 ) 0.0007 Outstanding at December 31, 2021 6,381,088 0.0007 6.5 45,236 47.97 Granted 170,953 0.0007 2.74 Exercised (355,745 ) 0.0007 Forfeited (154,835 ) 0.0007 Outstanding at December 31, 2022 6,041,461 0.0007 5.1 11,609 48.39 Vested and expected to vest at December 31, 2022 6,053,661 0.0007 5.1 11,632 47.02 Exercisable at December 31, 2022 5,682,238 0.0007 4.8 10,919 45.40 |
Fair Values of Share Options Granted | The fair values of share options granted during the years ended December 31, 2020, 2021 and 2022. Options Granted Options Granted Options Granted Expected volatility 57.77%-58.65 % 60.31%-61.94 % 50.43%-52.00 % Risk-free interest rate 0.82%-1.09 % 1.66%-1.96 % 2.47%-4.10 % 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) 41.50-77.78 7.09-60.19 1.45-3.83 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 2021 2022 PRC Statutory income tax rates 25.0 % 25.0 % 25.0 % Change in valuation allowance (13.9 %) (16.9 %) (17.2 %) Permanent book — tax difference (9.2 %) (6.1 %) 4.1 % Difference in EIT rates of certain subsidiaries (2.2 %) (2.5 %) (12.0 %) Total (0.3 %) (0.5 %) (0.1 %) |
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, 2020 2021 2022 Domestic 558,657 870,174 316,425 Foreign 547,517 363,757 597,974 Total 1,106,174 1,233,931 914,399 |
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, 2020 2021 2022 Current income tax expense 1,396 5,453 1,355 Deferred income tax benefit (2,404 ) (2,403 ) (2,403 ) Income tax expense (benefit) (1,008 ) 3,050 (1,048 ) |
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, December 31, Deductible temporary difference to accruals and others 522,692 522,575 Tax losses carried forward 787,270 978,345 Less: Valuation allowance (1,309,962 ) (1,500,920 ) Total of deferred tax assets — — Taxable temporary difference related to acquired right to operate an online audio/video content platform 16,422 14,019 Total of deferred tax liabilities 16,422 14,019 |
Schedule of Movement of Valuation Allowance | Year ended December 31, 2020 2021 2022 Beginning balance 985,440 1,056,253 1,309,962 Current year additions 100,629 434,837 287,018 Current year reversals (29,816 ) (181,128 ) (96,060 ) Ending balance 1,056,253 1,309,962 1,500,920 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests And Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interests Activities | The Company’s redeemable non-controlling Year ended December 31, 2020 2021 2022 Beginning balance 495,845 1,093,526 1,172,218 Issuance of Fun Preferred Shares, net of issuance costs 733,238 — — Foreign exchange impact (37,374 ) (30,034 ) 117,540 Repurchase of Series B Preferred Shares (146,460 ) — — Accretion to redemption value of redeemable non-controlling 48,277 108,726 124,677 Ending balance 1,093,526 1,172,218 1,414,435 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Transaction and Balance Amount Due to/from Related Parties | For the years ended December 31, 2020, 2021 and 2022, the transactions and balance amount due to/from related parties was as follows: Transaction amount with related parties Year ended December 31, 2020 2021 2022 Services provided by the Group Advertising and marketing service provided to related parties (1) 250,875 40,263 2,451 Year ended December 31, 2020 2021 2022 Services received by the Group Advertisement costs charged from a related party (2) 29,206 103,275 14,564 Gaming cost sharing charged from a related party (3) 1,845 11 — Others advertising and promotional costs charged from a related party (4) 4,192 15,840 7,945 Balance amount with related parties As of December 31, December 31, Amount due from related parties (1) 259,863 48,802 Amount due to related parties (2)& (3) 6,928 592 (1) For the years ended December 31, 2020, 2021 and 2022, the service fee of RMB250.9 million, RMB39.8 million and RMB2.5 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, 2021 and 2022, the amounts due from related parties that pertains to accounts receivable from related party revenues generated was RMB246.5 million and RMB48.8 million respectively. Although the balance as of December 31, 2022 is overdue, 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. (2) 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 RMB29.2 million, RMB103.3 million and RMB14.6 million for the years ended December 31, 2020, 2021 and 2022, respectively. (3) In July 2019, the Company invested RMB3.0 million in a game developing company which the founder’s controlled entity has significant influence in. The investment was measured using the measurement alternative recorded at cost less any impairment since it does not have a readily determinable fair value. The investment was fully impaired as of December 31, 2021. (Note 6). In 2019 the Group entered into a game cooperation agreement with this company and the Group is the principal in the arrangement. The total service fee represents the amount paid to this company in relation to the arrangement. (4) For the years ended December 31, 2020, 2021 and 2022, the service fee charged from related parties represented the expense charged from companies under common control of the founder which provided the Group advertising and marketing related promotion services. |
Basic and Diluted Net Loss pe_2
Basic and Diluted Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020, 2021 and 2022 as follows: Year ended Year ended Year ended Numerator: Net loss attributable to Qutoutiao Inc. (1,104,439 ) (1,239,617 ) (914,767 ) Accretion on redemption value of Series A convertible redeemable preferred shares of a subsidiary (Note 21) (13,509 ) (14,089 ) ( 15,947 ) Accretion on redemption value of Series B convertible redeemable preferred shares of a subsidiary (Note 21) (33,188 ) (21,726 ) (24,918 ) Accretion on redemption value of Series C convertible redeemable preferred shares of a subsidiary (Note 21) (1,580 ) (73,081 ) ( 83,812 ) Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) 14,842 — — Net loss attributable to ordinary shareholders-Basic and diluted (1,137,874 ) (1,348,513 ) (1,039,444 ) Denominator: Denominator for basic and diluted loss per share Weighted- average ordinary shares outstanding Basic and diluted 72,513,077 75,767,532 76,629,816 Basic and diluted loss per share (15.69 ) (17.80 ) (13.56 ) Denominator for basic and diluted loss per ADS Weighted-average ADS outstanding Basic and diluted 29,005,231 30,307,013 30,651,926 Basic and diluted loss per ADS (39.23 ) (44.50 ) (33.91 ) |
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, 2020 2021 2022 Share options — weighted average 1,353,808 546,035 219,083 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Non-cancellable Capital Expenditure | As of December 31, 2022, future minimum payments with respect to these agreements consist of the following: RMB US$ (Note 2 Years Ending December 31, 2023 11,000 1,595 |
Schedule of Future Minimum Lease Payments with Respect to Agreements | As of December 31, 2022, future minimum payments under non-cancellable RMB US$ (Note 2 Years Ending December 31, 2023 188 27.26 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Condensed Financial Information of the Parent Company BALANCE SHEETS As of December 31, 2021 December 31, 2022 RMB RMB US$ (Note 2(e)) ASSETS Current assets: Cash and cash equivalents 19,633 50,989 7,393 Amount due from subsidiaries and VIEs of the Company 3,521,857 3,698,706 536,262 Prepayments and other current assets 4,605 2,935 425 Total current assets 3,546,095 3,752,630 544,080 Other non-current 2,645 1,476 214 Total non-current 2,645 1,476 214 Total assets 3,548,740 3,754,106 544,294 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT Current liabilities: Accrued expenses and other current liabilities 3,312 978 143 Amounts due to subsidiaries and VIEs of the Company 281,201 181,598 26,329 Convertible loan—current 1,182,963 1,746,188 253,173 Total current liabilities 1,467,476 1,928,764 279,645 Non-current Other non-current 1,733 — — Investment deficit of subsidiaries and VIEs 4,469,087 5,416,081 785,258 Total non-current 4,470,820 5,416,081 785,258 Total liabilities 5,938,296 7,344,845 1,064,903 Shareholders’ deficit: Class A ordinary shares (US$0.0001 par value, 50,000,000 shares authorized as of December 31, 2021 and 2022; 42,812,245 shares issued as of December 31, 2021 and 2022; 38,370,892 and 38,726,637 shares outstanding as of December 31, 2021 and 2022) 26 26 4 Class B ordinary shares (US$0.0001 par value; 34,248,442 shares authorized as of December 31, 2021 and 2022; 32,937,193 shares issued and outstanding as of December 31, 2021 and 2022) 24 24 3 Additional paid-in 4,979,353 5,049,458 732,103 Treasury stock (US$0.0001 par value; 4,441,353 and 4,085,608 shares as of December 31, 2021 and 2022, respectively) (142,229 ) (142,229 ) (20,621 ) Accumulated other comprehensive loss 129,010 (102,834 ) (14,911 ) Accumulated deficit (7,355,740 ) (8,395,184 ) (1,217,187 ) Total shareholders’ deficit (2,389,556 ) (3,590,739 ) (520,609 ) Total liabilities and shareholders’ deficit 3,548,740 3,754,106 544,294 |
Statements of Comprehensive Loss | STATEMENTS OF COMPREHENSIVE LOSS Year ended December 31, 2020 2021 2022 RMB RMB RMB US$ (Note 2(e)) Operating expenses: General and administrative (471,730 ) (208,594 ) (77,185 ) (11,191 ) Total operating expenses (471,730 ) (208,594 ) (77,185 ) (11,191 ) Loss from operations (471,730 ) (208,594 ) (77,185 ) (11,191 ) Investment loss — (27,589 ) — — Interest income 2,819 — 585 85 Interest expense (36,774 ) (30,683 ) (468,358 ) (67,906 ) Foreign exchange related gains, net (7 ) — (220 ) (34 ) Other expenses, net (42 ) (41 ) (42 ) (6 ) Loss from subsidiaries and VIEs (598,705 ) (972,710 ) (369,547 ) (53,578 ) Loss before provision for income taxes (1,104,439 ) (1,239,617 ) (914,767 ) (132,630 ) Net loss (1,104,439 ) (1,239,617 ) (914,767 ) (132,630 ) Accretion to redemption value of convertible redeemable preferred shares of a subsidiary (48,277 ) (108,896 ) (124,677 ) (18,076 ) Gains on repurchase of convertible redeemable preferred shares of a subsidiary 14,842 — — — Net loss attributable to ordinary shareholders (1,137,874 ) (1,348,513 ) (1,039,444 ) (150,706 ) Net loss (1,104,439 ) (1,239,617 ) (914,767 ) (132,630 ) Foreign currency translation adjustment, net of nil tax 102,254 44,690 (231,844 ) (33,614 ) Comprehensive loss (1,002,185 ) (1,194,927 ) (1,146,611 ) (166,244 ) |
Statements of Cash Flows | STATEMENTS OF CASH FLOWS Year ended December 31, 2020 2021 2022 RMB RMB RMB US$ (Note 2(e)) Cash flows used in operating activities (354 ) (14,807 ) (39,578 ) (5,738 ) Cash flows (used in)/provided by investing activities (10,008 ) (32,506 ) 68,089 9,872 Cash flows used in financing activities (135,744 ) — — — Effect of exchange rate changes on cash and cash equivalents (240 ) 1 2,845 412 Net increase in cash and cash equivalents (146,346 ) 17,700 31,356 4,546 Cash and cash equivalents, beginning of year 148,279 1,933 19,633 2,847 Cash and cash equivalents, end of year 1,933 19,633 50,989 7,393 |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Principal Subsidiaries and Consolidated Affiliated Entities (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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% |
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% |
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 | 65% |
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% |
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% |
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% |
QTT Asia | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-04 |
Place of incorporation | British Virgin Islands (“BVI”) |
Percentage of direct or indirect economic ownership | 100% |
Kubik Media | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-05 |
Place of incorporation | BVI |
Percentage of direct or indirect economic ownership | 100% |
Kubik Technology | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-05 |
Place of incorporation | Singapore |
Percentage of direct or indirect economic ownership | 100% |
Abaidi | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2018-10 |
Place of incorporation | Indonesia |
Percentage of direct or indirect economic ownership | 100% |
AI-Fun | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | Hong Kong |
Percentage of direct or indirect economic ownership | 100% |
Fun-Platform | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | Cayman |
Percentage of direct or indirect economic ownership | 100% |
Striking | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2019-01 |
Place of incorporation | Hong Kong |
Percentage of direct or indirect economic ownership | 100% |
Fun SG | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-02 |
Place of incorporation | Singapore |
Percentage of direct or indirect economic ownership | 100% |
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% |
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% |
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% |
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% |
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% |
Hainan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-06 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
Yuanyin | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-04 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Kuaishen | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-04 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Guatian | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-06 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
Guanji | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-02 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Yimao | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-02 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Xier | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-04 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Yixun | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-06 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Jingxuan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-06 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Shanghai Chengshan | |
Subsidiary Or Equity Method Investee [Line Items] | |
Date of establishment | 2021-03 |
Place of incorporation | PRC |
Percentage of direct or indirect economic ownership | 100% |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Details) - CNY (¥) | 12 Months Ended | |||||
Oct. 13, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2019 | Sep. 23, 2019 | |
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 | |||||
The Paper | ||||||
Variable Interest Entity [Line Items] | ||||||
Equity interests percentage | 1% | 1% | ||||
InfoUniversal | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage | 100% | |||||
InfoUniversal | Quyun WFOE | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage | 100% |
Principal Accounting Policies -
Principal Accounting Policies - Schedule of Assets, Liabilities, Result of Operations and Cash Flows of VIEs and its Subsidiaries (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |||
Current assets: | ||||||||
Cash and cash equivalents | ¥ 122,801 | ¥ 240,351 | ¥ 494,475 | $ 17,804 | ||||
Restricted cash | 7,600 | 75,482 | 1,102 | |||||
Short-term investments | 26,402 | 343,017 | 3,828 | |||||
Accounts receivable, net | 117,409 | 770,919 | 17,023 | |||||
Amounts due from related parties | 48,802 | [1] | 259,863 | [1] | 7,076 | |||
Prepayments and other current assets | 158,811 | 172,877 | 23,025 | |||||
Total current assets | 481,825 | 1,862,509 | 69,858 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 5,013 | 12,861 | 727 | |||||
Long-term investments | 0 | 1,416 | ||||||
Right-of-use assets | 21,879 | 26,342 | 3,172 | |||||
Intangible assets | 62,649 | 165,270 | 9,083 | |||||
Other non-current assets | 2,902 | 4,809 | 421 | |||||
Total non-current assets | 99,711 | 217,966 | 14,457 | |||||
Total assets | 581,536 | 2,080,475 | 84,315 | |||||
Current liabilities | ||||||||
Accounts payable | 394,994 | 313,768 | 57,269 | |||||
Amount due to related parties | 592 | [2],[3] | 6,928 | [2],[3] | 86 | |||
Registered users' loyalty payable | 29,800 | 61,691 | 4,317 | |||||
Advance from customers and deferred revenue | 48,706 | 122,597 | 7,062 | |||||
Salary and welfare payable | 59,561 | 65,987 | 8,636 | |||||
Tax payable | 40,474 | 43,879 | 5,868 | |||||
Lease liabilities, current | 15,083 | 11,897 | 2,187 | |||||
Accrued liabilities related to users' loyalty programs | 64,600 | 99,360 | 9,365 | |||||
Accrued liabilities and other current liabilities | 336,262 | 1,334,603 | 48,752 | |||||
Total current liabilities | 2,736,222 | 3,263,673 | 396,715 | |||||
Non-current liabilities: | ||||||||
Lease liabilities, non-current | 7,599 | 15,985 | 1,102 | |||||
Total liabilities | 2,757,840 | 3,297,813 | $ 399,850 | |||||
Revenues [Abstract] | ||||||||
Total revenues | 1,083,045 | $ 157,026 | 4,339,603 | 5,285,195 | ||||
Cost of Revenue [Abstract] | ||||||||
Cost of revenues | (548,043) | (79,459) | (1,068,340) | (1,643,365) | ||||
Gross Profit | 520,438 | 75,455 | 3,167,977 | 3,610,779 | ||||
Operating expenses: | ||||||||
Operating Expenses | 900,765 | 130,598 | 4,467,298 | 4,722,247 | ||||
Other operating income | 61,829 | 8,964 | 106,098 | 79,299 | ||||
Loss from Operations | (318,498) | (46,179) | (1,193,223) | (1,032,169) | ||||
Non-operating income/(expense) | (81,879) | (11,872) | 27,637 | (7,310) | ||||
Loss before income tax expense | (914,399) | (132,577) | (1,233,931) | (1,106,174) | ||||
Income tax expense | (1,048) | (152) | 3,050 | (1,008) | ||||
Equity in loss of affiliate companies | (1,416) | (205) | (3,195) | |||||
Net loss | (914,800) | (132,630) | (1,240,176) | (1,105,166) | ||||
Net cash used in operating activities | (443,800) | (64,344) | (279,122) | (863,774) | ||||
Net cash provided by/(used in) investing activities | 267,555 | 38,792 | 75,521 | 782,545 | ||||
Net cash provided by financing activities | (20,000) | (2,900) | (66,094) | 307,746 | ||||
Net increase (decrease) in cash and cash equivalents | (196,242) | (28,452) | (269,695) | 226,517 | ||||
Cash, cash equivalents and restricted cash at the beginning of year | 315,833 | 45,791 | 594,791 | 375,689 | ||||
Cash, cash equivalents and restricted cash at the end of year | 130,401 | $ 18,906 | 315,833 | 594,791 | ||||
VIEs and its subsidiaries | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 32,147 | 19,783 | ||||||
Restricted cash | 7,384 | 13,160 | ||||||
Short-term investments | 6,402 | 33,600 | ||||||
Accounts receivable, net | 110,523 | 770,797 | ||||||
Amount due from subsidiaries of the Company | 470,966 | 937,831 | ||||||
Amounts due from related parties | 48,284 | 259,863 | ||||||
Prepayments and other current assets | 95,568 | 114,317 | ||||||
Total current assets | 771,274 | 2,149,351 | ||||||
Non-current assets: | ||||||||
Property and equipment, net | 5,002 | 12,828 | ||||||
Long-term investments | 1,416 | |||||||
Right-of-use assets | 21,879 | 26,120 | ||||||
Intangible assets | 6,574 | 99,582 | ||||||
Other non-current assets | 1,426 | 2,164 | ||||||
Total non-current assets | 34,881 | 142,110 | ||||||
Total assets | 806,155 | 2,291,461 | ||||||
Current liabilities | ||||||||
Accounts payable | 330,550 | 255,182 | ||||||
Amount due to subsidiaries of the Company | 5,644,725 | 5,505,444 | ||||||
Amount due to related parties | 1,495 | |||||||
Registered users' loyalty payable | 29,773 | 55,392 | ||||||
Advance from customers and deferred revenue | 11,963 | 122,594 | ||||||
Salary and welfare payable | 28,048 | 42,237 | ||||||
Tax payable | 29,584 | 15,288 | ||||||
Lease liabilities, current | 15,083 | $ 11,675 | ||||||
Accrued liabilities related to users' loyalty programs | 64,589 | 99,360 | ||||||
Accrued liabilities and other current liabilities | 301,713 | 1,299,057 | ||||||
Total current liabilities | 6,456,028 | 7,407,724 | ||||||
Non-current liabilities: | ||||||||
Lease liabilities, non-current | 7,599 | 15,985 | ||||||
Total liabilities | 6,463,627 | 7,423,709 | ||||||
Revenues [Abstract] | ||||||||
Total revenues | 1,408,308 | 4,524,686 | 5,238,682 | |||||
Cost of Revenue [Abstract] | ||||||||
Cost of revenues | (822,373) | (886,660) | (1,491,678) | |||||
Gross Profit | 585,935 | 3,638,026 | 3,792,004 | |||||
Operating expenses: | ||||||||
Operating Expenses | (956,562) | (5,019,250) | (4,902,930) | |||||
Other operating income | 9,153 | 18,659 | 22,999 | |||||
Loss from Operations | (361,474) | (1,362,565) | (1,087,927) | |||||
Non-operating income/(expense) | (9,311) | 22,282 | (8,281) | |||||
Loss before income tax expense | (370,785) | (1,340,283) | (1,096,208) | |||||
Income tax expense | (54) | (131) | ||||||
Equity in loss of affiliate companies | (1,416) | (3,195) | ||||||
Net loss | (372,255) | (1,343,609) | (1,096,208) | |||||
Net cash used in operating activities | (22,037) | (190,975) | (391,007) | |||||
Net cash provided by/(used in) investing activities | 28,625 | 63,047 | (80,506) | |||||
Net cash provided by financing activities | 84,471 | 512,233 | ||||||
Net increase (decrease) in cash and cash equivalents | 6,588 | (43,457) | 40,720 | |||||
Cash, cash equivalents and restricted cash at the beginning of year | 32,943 | 76,400 | 35,680 | |||||
Cash, cash equivalents and restricted cash at the end of year | 39,531 | 32,943 | 76,400 | |||||
VIEs and its subsidiaries | Third Party Revenues [Member] | ||||||||
Revenues [Abstract] | ||||||||
Total revenues | 828,341 | 4,336,388 | 5,238,682 | |||||
Cost of Revenue [Abstract] | ||||||||
Cost of revenues | (446,189) | (867,701) | (1,476,216) | |||||
Operating expenses: | ||||||||
Operating Expenses | (572,365) | (4,067,548) | (4,357,603) | |||||
VIEs and its subsidiaries | Intra Group revenues [Member] | ||||||||
Revenues [Abstract] | ||||||||
Total revenues | 579,967 | 188,298 | ||||||
Cost of Revenue [Abstract] | ||||||||
Cost of revenues | (376,184) | (18,959) | (15,462) | |||||
Operating expenses: | ||||||||
Operating Expenses | ¥ (384,197) | ¥ (951,702) | ¥ (545,327) | |||||
[1]For the years ended December 31, 2020, 2021 and 2022, the service fee of RMB250.9 million, RMB39.8 million and RMB2.5 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, 2021 and 2022, the amounts due from related parties that pertains to accounts receivable from related party revenues generated was RMB246.5 million and RMB48.8 million respectively. Although the balance as of December 31, 2022 is overdue, 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.[2]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 RMB29.2 million, RMB103.3 million and RMB14.6 million for the years ended December 31, 2020, 2021 and 2022, respectively.[3]In July 2019, the Company invested RMB3.0 million in a game developing company which the founder’s controlled entity has significant influence in. The investment was measured using the measurement alternative recorded at cost less any impairment since it does not have a readily determinable fair value. The investment was fully impaired as of December 31, 2021. (Note 6). In 2019 the Group entered into a game cooperation agreement with this company and the Group is the principal in the arrangement. The total service fee represents the amount paid to this company in relation to the arrangement. |
Principal Accounting Policies_3
Principal Accounting Policies - Additional Information (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||||
Jul. 01, 2019 | Jun. 30, 2019 | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 04, 2022 | Dec. 31, 2019 CNY (¥) | Apr. 04, 2019 CNY (¥) | Apr. 04, 2019 USD ($) | Mar. 28, 2019 USD ($) | |
Accounting Policies [Line Items] | |||||||||||||
Shares repurchased value | ¥ 142,200 | ||||||||||||
Common stock shares retired | shares | 0 | 0 | |||||||||||
Restricted cash | ¥ 7,600 | ¥ 75,482 | $ 1,102 | ||||||||||
Allowance for credit losses | 335,374 | 335,841 | ¥ 86,698 | ||||||||||
Change in goodwill | 0 | 0 | |||||||||||
Short-term borrowings | ¥ 0 | ¥ 20,000 | |||||||||||
Short-term borrowings,Interest Rate | 3.70% | 3.70% | |||||||||||
Exchange rates used for translation | 6,964.6000 | 6,375.7000 | 6,964.6000 | ||||||||||
Convenience translation, noon buying rate of US$ using RMB | 6,897.2000 | 6,897.2000 | |||||||||||
Intangible assets, estimated useful lives | 10 years | 10 years | |||||||||||
Goodwill Impairment | ¥ 0 | ¥ 0 | 0 | ||||||||||
Applicable tax rate of cultural development fee for advertising services revenues | 1.50% | 3% | |||||||||||
Advertising and marketing expenses | 234,000 | 2,662,000 | 1,728,100 | ||||||||||
Costs related to users rewards granted | 194,800 | 731,200 | 1,663,900 | ||||||||||
Rewards redeemed amount | 250,900 | 673,800 | 1,509,300 | ||||||||||
Total estimated breakage amount | 6,200 | 15,300 | 27,800 | ||||||||||
Users reward recorded in registered users loyalty payable | 29,800 | 61,691 | $ 4,317 | ||||||||||
Estimated users rewards recorded in accrued liabilities related to users loyalty programs | 64,600 | 99,360 | 9,365 | ||||||||||
Interest and penalties associated with uncertain tax positions | 0 | 0 | 0 | ||||||||||
Unrecognized uncertain tax positions | 0 | 0 | |||||||||||
Convertible Debt | 1,740,000 | ||||||||||||
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 0 | ||||||||||
Net loss | 914,800 | $ 132,630 | 1,240,176 | 1,105,166 | |||||||||
Accumulated deficit | 8,395,200 | 7,355,740 | 1,217,187 | ||||||||||
Working capital | 2,254,400 | ||||||||||||
Restricted cash and short term investment | 156,800 | ||||||||||||
Restricted short-term investment | 56,800 | ||||||||||||
Net cash provided used in operating activities | (443,800) | $ (64,344) | (279,122) | (863,774) | |||||||||
Restricted cash unfrozen | 7,600 | ||||||||||||
Equity instruments fair value | 0 | ||||||||||||
Sales and Marketing Expenses | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Accrued rewards reversed amount | 63,900 | 81,400 | 213,900 | ||||||||||
Live Streaming And Online Games [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Rewards consumed by purchasing virtual items | ¥ 1,400 | 8,000 | 35,800 | ||||||||||
Minimum | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Goodwill Impairment Likelihood Percentage | 50% | 50% | |||||||||||
Percentage of after tax net income to be allocated to general reserve under PRC law. | 10% | 10% | |||||||||||
Maximum | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
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% | 50% | |||||||||||
Convertible Loan Agreement [Member] | Alibaba Investment Limited [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Short-term borrowings,Interest Rate | 3% | 3% | 3% | ||||||||||
Debt instrument, face amount | $ 171,100 | ¥ 1,147,000 | $ 171,100 | ||||||||||
Convertible Loan Agreement [Member] | Alibaba Investment Limited [Member] | Subsequent Event [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Debt Instrument Total Amount Of Principal And Accumulated Interest Including Incremental Interest Under Supplemental Agreement | $ | $ 270,300 | ||||||||||||
Convertible Loan Agreement [Member] | Alibaba Investment Limited [Member] | Minimum | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3% | ||||||||||||
Convertible Loan Agreement [Member] | Alibaba Investment Limited [Member] | Maximum | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9% | ||||||||||||
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 | |||||||||||
Short-term Investments | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Allowance for credit losses | ¥ 0 | ||||||||||||
PRC | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Government grants received | ¥ 4,500 | ¥ 7,200 | ¥ 5,800 | ||||||||||
Common Stock [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Number of shares repurchased | shares | 1,166,425,000 | 1,166,425,000 | |||||||||||
American Depositary Shares | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Stock Repurchase Program Authorized Amount | $ | $ 50,000 |
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 (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Short-term investments — Wealth management products | ¥ 26,402 | ¥ 192,900 |
Level 2 | ||
Assets | ||
Short-term investments — Wealth management products | ¥ 26,402 | ¥ 192,900 |
Principal Accounting Policies_5
Principal Accounting Policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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 - Schedule of Disaggregation of Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | ¥ 1,083,045 | $ 157,026 | ¥ 4,339,603 | ¥ 5,285,195 |
Advertising and Marketing Service Provided to Advertising Customers Recorded Gross | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 404,443 | 58,638 | 2,533,327 | 3,857,233 |
Advertising and Marketing Service Provided to Advertising Platforms Recorded Net | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 434,934 | 63,060 | 1,557,056 | 1,189,602 |
Agent and Platform Service fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 4,355 | 631 | 22,004 | 7,904 |
Live Streaming And Online Games | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 195,213 | 28,303 | 140,269 | 193,141 |
Other Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 44,100 | 6,394 | 86,947 | 37,315 |
Total Other services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | ¥ 243,668 | $ 35,328 | ¥ 249,220 | ¥ 238,360 |
Principal Accounting Policies_7
Principal Accounting Policies - Schedule of Disaggregation of Revenue (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | ¥ 1,083,045 | $ 157,026 | ¥ 4,339,603 | ¥ 5,285,195 |
Advertising Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | ¥ 0 | ¥ 39,800 | ¥ 248,200 |
Significant equity transactio_2
Significant equity transactions - Additional Information (Details) $ / shares in Units, $ in Thousands, ¥ in Millions | 12 Months Ended | |||||
Sep. 23, 2019 CNY (¥) | Sep. 23, 2019 USD ($) $ / shares shares | Apr. 05, 2019 CNY (¥) shares | Apr. 05, 2019 USD ($) shares | Dec. 31, 2022 | Sep. 01, 2017 shares | |
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Number of shares issued | 50,000 | |||||
Proceeds from initial public offering | ¥ 212.1 | $ 31,900 | ||||
Selling Shareholders | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Number of shares offered | 1,668,033 | 1,668,033 | ||||
The Paper | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Number of shares issued | 1,480,123 | |||||
Common stock cash consideration | ¥ 144.4 | $ 20,408,467 | ||||
Cash consideration price per share | $ / shares | $ 13.79 | |||||
Difference between fair value of shares issued and cash consideration paid | ¥ 8.4 | $ 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% | |||||
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 | |||||
Parent Company | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Number of shares offered | 831,967 | 831,967 |
Risks and Concentration - Addit
Risks and Concentration - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total Net Revenue | Customer Concentration Risk | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration of revenues percentage | 11% | 18% | 11% |
Maximum | Unfavorable Regulatory Action | Internet Audio-Visual Program Transmission License | |||
Concentration Risk [Line Items] | |||
Fine to be paid for lack of license | ¥ 30,000 |
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, 2022 | Dec. 31, 2021 | |
Customer A | Advertising and Marketing Customer | ||
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 29% | 22% |
Customer B | Advertising and Marketing Customer | ||
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 14% | 11% |
Customer C | Advertising and Marketing Customer (Related Party – Note 22) | ||
Concentration Risk [Line Items] | ||
Concentration of accounts receivable percentage | 14% |
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) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivables | Customer Concentration Risk | Customer B | Advertising Platform | Maximum | |
Concentration Risk [Line Items] | |
Concentration of accounts receivable percentage | 10% |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedules of Cash and Cash Equivalents (Details) ¥ in Thousands, Rp in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 IDR (Rp) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 IDR (Rp) | Dec. 31, 2020 CNY (¥) |
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | ¥ 122,801 | $ 17,804 | ¥ 240,351 | ¥ 494,475 | |||
Overseas | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 55,389 | Rp 455 | $ 102,565 | Rp 16,859 | |||
China | Non VIE | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 4,730 | $ 0 | 11,570 | $ 89,494 | |||
China | VIE | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 32,147 | 19,783 | |||||
RMB [Member] | Overseas | |||||||
Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | ¥ 30,080 | ¥ 80 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |||
Interest Income, Deposits with Financial Institutions | ¥ 1.4 | ¥ 2.4 | ¥ 4.1 |
Investments - Summary of Short-
Investments - Summary of Short-Term Investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | ¥ 26,402 | $ 3,828 | ¥ 343,017 |
Time Deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | 0 | 105,199 | |
Wealth Management Products | |||
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | 26,402 | 192,900 | |
Non- marketable equity securities | |||
Cash and Cash Equivalents [Line Items] | |||
Short-term Investments | ¥ 0 | ¥ 44,918 |
Investments - Summary of Long-T
Investments - Summary of Long-Term Investment (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, All Other Investments [Abstract] | ||
Equity method investments | ¥ 0 | ¥ 1,416 |
Total long-term equity investments | ¥ 0 | ¥ 1,416 |
Investments - Additional Inform
Investments - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Mar. 31, 2020 CNY (¥) | Jul. 31, 2019 CNY (¥) | |
Investment Company, Financial Highlights [Line Items] | ||||||
Interest income | ¥ 1,370 | $ 199 | ¥ 3,174 | ¥ 10,419 | ||
Investment Income, Nonoperating | 2,300 | 9,000 | 5,900 | |||
Unrealized Gain (Loss) on Investments | 15,300 | 16,700 | ||||
Equity Securities without Readily Determinable Fair Value | 8,000 | 20,000 | ¥ 3,000 | |||
Equity method investment | 0 | ¥ 1,416 | ||||
Percentage of equity interest acquired by third party investor | 60% | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | ¥ 23,100 | |||||
Share of loss of equity method investments | (1,416) | $ (205) | ¥ (3,195) | |||
Ownership subsidiary | ||||||
Investment Company, Financial Highlights [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 40% | |||||
Equity Method Investments [Member] | ||||||
Investment Company, Financial Highlights [Line Items] | ||||||
Share of loss of equity method investments | 1,400 | ¥ 3,200 | 0 | |||
Time Deposits | ||||||
Investment Company, Financial Highlights [Line Items] | ||||||
Interest income | 1,300 | 3,100 | 6,300 | |||
Limited Partner [Member] | ||||||
Investment Company, Financial Highlights [Line Items] | ||||||
Unrealized Gain (Loss) on Investments | 50,500 | ¥ 1,200 | 54,400 | |||
Equity method investment | ¥ 27,600 | ¥ 106,000 | ||||
Equity Method Investments, Fair Value Disclosure | ¥ 44,900 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable, gross – current | ¥ 452,783 | ¥ 1,106,760 |
Less: allowance for credit losses | (335,374) | (335,841) |
Accounts receivable, net | ¥ 117,409 | ¥ 770,919 |
Accounts Receivable, Net - Sc_2
Accounts Receivable, Net - Schedule of Allowance for Credit Losses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Receivables [Abstract] | ||||
At beginning of the period | ¥ (335,841) | ¥ (86,698) | ||
ASC 326 Adoption impact | 0 | (6,889) | ||
(Additional) reversal provisions | 467 | $ 68 | (249,143) | (79,809) |
At the end of the period | ¥ (335,374) | ¥ (335,841) | ¥ (86,698) |
Accounts Receivable, Net - Add
Accounts Receivable, Net - Additional Information (Details) - Cumulative Effect, Period of Adoption, Adjustment [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Cumulative effect of adoption of accounting | ¥ (6,889) | |
Retained Earnings [Member] | ||
Cumulative effect of adoption of accounting | ¥ 6,900 | ¥ (6,889) |
Prepayments and Other Assets -
Prepayments and Other Assets - Summary of Other Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Prepayment and other current assets | |||
Value-added tax receivable | ¥ 102,453 | ¥ 79,009 | |
Loans and advance to employees | 11,583 | 14,934 | |
Prepayments of IT service fee | 10,881 | 1,042 | |
Deposit to third-party advertising platforms | 6,087 | 14,981 | |
Deposit to third-party payment service providers | 5,378 | 19,359 | |
Prepayments of advertising fee | 4,352 | 4,216 | |
Cooperation service fee-current portion (Note 3b) | 1,674 | 1,532 | |
Prepayment for the use of contents | 1,665 | 17,512 | |
Prepayments of business insurance | 1,068 | 2,600 | |
Lease deposits-current portion | 876 | 5,646 | |
Others | 12,794 | 12,046 | |
Total | 158,811 | $ 23,025 | 172,877 |
Other non-current assets: | |||
Long-term cooperation service fee (Note 3b) | 1,476 | 2,644 | |
Long-term lease deposits | 1,426 | 2,165 | |
Total | ¥ 2,902 | ¥ 4,809 |
Prepayments and Other Assets _2
Prepayments and Other Assets - Summary of Other Assets (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Prepayments And Other Assets [Line Items] | ||
Loans to employees to meet personal needs for period | 1 year | |
Allowance for doubtful accounts | ¥ 335,374 | ¥ 335,841 |
Third Party Media Companies And Freelancers | ||
Prepayments And Other Assets [Line Items] | ||
Allowance for doubtful accounts | ¥ 0 | ¥ 0 |
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) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Cost: | |||
Total cost | ¥ 16,054 | ¥ 45,649 | |
Less: Accumulated depreciation | (11,041) | (32,788) | |
Property and equipment, net | 5,013 | $ 727 | 12,861 |
Office Equipment | |||
Cost: | |||
Total cost | 11,843 | 20,445 | |
Leasehold Improvements | |||
Cost: | |||
Total cost | ¥ 4,211 | ¥ 25,204 |
Property and Equipment, Net -_2
Property and Equipment, Net - Summary of Depreciation Expense (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | ¥ 2,324 | ¥ 11,108 | ¥ 12,144 |
Cost of Revenues | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 534 | 3,024 | 3,463 |
Research and Development Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 1,202 | 6,150 | 6,653 |
Sales and Marketing Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 249 | 622 | 974 |
General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | ¥ 339 | ¥ 1,312 | ¥ 1,054 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Total cost | ¥ 244,553 | ¥ 244,553 |
Less: Accumulated amortization | (181,904) | (79,283) |
Intangible assets, net | 62,649 | 165,270 |
Acquired user data | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | 127,133 | 127,133 |
Intangible assets, net | 45,900 | |
Online Audio/Video Content Platform | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | 96,130 | 96,130 |
Computer Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | 12,290 | 12,290 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Total cost | ¥ 9,000 | ¥ 9,000 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | ¥ 102,621 | $ 14,879 | ¥ 54,099 | ¥ 13,026 | |
Deferred tax liability, intangible assets | ¥ 14,019 | 16,422 | $ 2,033 | ||
Intangible assets, estimated useful lives | 10 years | 10 years | |||
Acquired right to operate an online audio/video content platform with amount | ¥ 244,553 | 244,553 | |||
Finite-lived Intangible Assets Acquired | 136,100 | ||||
Carrying value of intangible asset | 62,649 | 165,270 | |||
Online Audio/Video Content Platform | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total cash considerations | 72,100 | ||||
Deferred tax liability, intangible assets | ¥ 24,000 | ||||
Intangible assets, estimated useful lives | 10 years | 10 years | |||
Acquired right to operate an online audio/video content platform with amount | ¥ 96,130 | 96,130 | |||
Online Audio/Video Content Platform | Series of Individually Immaterial Business Acquisitions [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Percentage of equity interest acquired | 100% | 100% | |||
Developed technology | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | ¥ 9,000 | ||||
Intangible assets, estimated useful lives | 5 years | 5 years | |||
Acquired right to operate an online audio/video content platform with amount | ¥ 9,000 | 9,000 | |||
Acquired user data | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | ¥ 127,100 | ||||
Intangible assets, estimated useful lives | 3 years | 3 years | |||
Acquired right to operate an online audio/video content platform with amount | ¥ 127,133 | ¥ 127,133 | |||
Carrying value of intangible asset | ¥ 45,900 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Amortization Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | ¥ 102,621 | $ 14,879 | ¥ 54,099 | ¥ 13,026 |
Cost of Revenues | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | 9,613 | 9,613 | 9,613 | |
Research and development expenses | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | 900 | 825 | ||
Sales and marketing expenses | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | 88,287 | 38,846 | ||
General and administrative expenses | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Total amortization expense | ¥ 3,821 | ¥ 4,815 | ¥ 3,413 |
Intangible Assets, Net - Summ_2
Intangible Assets, Net - Summary Of Future Intangible Asset Amortization (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023 | ¥ 12,305 | |
2024 | 11,437 | |
2025 | 11,437 | |
2026 | 9,787 | |
2027 | 9,637 | |
Thereafter | 8,046 | |
Intangible assets, net | ¥ 62,649 | ¥ 165,270 |
Leases - Schedule of components
Leases - Schedule of components of lease expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease, Cost [Abstract] | ||
Amortization of right-of-use assets | ¥ 12,996 | ¥ 23,772 |
Interest of lease liabilities | 1,232 | 1,873 |
Total lease cost | ¥ 14,228 | ¥ 25,645 |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Cash Flow information Related To Leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating lease payments | ¥ 13,327 | ¥ 22,122 |
Right-of-use assets obtained in exchange for lease obligations: | ¥ 12,315 | ¥ 5,650 |
Leases - Schedule Of Suppleme_2
Leases - Schedule Of Supplemental BaIance Sheet information Related To Leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Operating leases | |||
Operating lease right-of-use assets | ¥ 21,879 | $ 3,172 | ¥ 26,342 |
Operating lease liabilities, current | (15,083) | (2,187) | (11,897) |
Operating lease liabilities, non-current | (7,599) | $ (1,102) | (15,985) |
Total operating lease liabilities | ¥ (22,682) | ¥ (27,882) | |
Weighted-average remaining lease term | |||
Operating leases | 1 year 6 months | 1 year 6 months | 2 years 1 month 6 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 (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
2023 | ¥ 15,526 | |
2024 | 7,853 | |
Total undiscounted lease payments | 23,379 | |
Less: imputed interest | (697) | |
Total lease liabilities | ¥ 22,682 | ¥ 27,882 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments under Non-cancellable Operating Leases for Office Rental (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
Leases [Abstract] | |
2023 | ¥ 15,526 |
2024 | 7,853 |
Total | ¥ 23,379 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Discount rate | 5.70% | 5.70% |
Tax Payable - Schedule of Tax P
Tax Payable - Schedule of Tax Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Tax Payable [Abstract] | |||
Value added tax | ¥ 29,014 | ¥ 23,868 | |
Corporate income tax | 8,595 | 6,916 | |
Individual income tax withholding | 2,406 | 10,651 | |
Urban maintenance and construction tax | 79 | 1,376 | |
Stamp duty | 380 | 1,068 | |
Total | ¥ 40,474 | $ 5,868 | ¥ 43,879 |
Tax Payable - Additional Inform
Tax Payable - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Tax Payable [Abstract] | |
Value added tax rate | 6% |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Accrued liabilities and other current liabilities | ||||
Accrued advertising and marketing expense | ¥ 172,497 | ¥ 1,185,312 | ||
Tax surcharges and other fees | [1] | 133,471 | 134,821 | |
Accrued professional service fees | 6,368 | 5,876 | ||
Refund from depositary bank | [2] | 1,910 | 2,407 | |
Others | 22,016 | 6,187 | ||
Total | 336,262 | $ 48,752 | 1,334,603 | |
Non-current | ||||
Non-refundable incentive payment from depositary bank | [2] | 0 | 1,733 | |
Total | ¥ 336,262 | ¥ 1,336,336 | ||
[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 pandemic, the Group was exempt from the cultural development fee for 2020, 2021.[2]The Company received non-refundable incentive payment of US$1.8 million (RMB12.5 million) from depositary bank in September 2018, and the amount will be recorded ratably over a 5-year arrangement period. For the years ended December 31, 2021 and 2022, the Company recorded amount of RMB2.5 million each year as a reduction in general and administrative expenses. |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Parenthetical) (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 01, 2019 | Sep. 30, 2018 USD ($) | Sep. 30, 2018 CNY (¥) | Jun. 30, 2019 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Payables And Accruals [Abstract] | ||||||
Applicable tax rate of cultural development fee for advertising services revenues | 1.50% | 3% | ||||
Reduction in general and administrative expenses | ¥ 2.5 | ¥ 2.5 | ||||
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) $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 04, 2019 USD ($) $ / shares | Mar. 31, 2023 CNY (¥) | Nov. 30, 2022 CNY (¥) | May 31, 2022 CNY (¥) | Mar. 31, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Apr. 04, 2022 | Apr. 04, 2019 CNY (¥) | |
Convertible loan interest rate per anum | 3.70% | 3.70% | |||||||||||
Additional consideration exchanged in return for two conversion date extensions | ¥ 0 | ||||||||||||
Cash received from Convertible loan | ¥ 1,746,200 | ¥ 1,183,000 | |||||||||||
Supplemental Agreement | |||||||||||||
Interest expense on debt | ¥ 1,500 | ¥ 1,500 | ¥ 3,000 | ||||||||||
Alibaba Investment Limited | Convertible Loan Agreement | |||||||||||||
Aggregate principal amount of convertible loan | $ 171.1 | $ 171.1 | ¥ 1,147,000 | ||||||||||
Conversion price per share | $ / shares | $ 60 | ||||||||||||
Convertible loan interest rate per anum | 3% | 3% | 3% | ||||||||||
Accrued interest | 92,400 | ¥ 587,600 | |||||||||||
Cash received from Convertible loan | $ 171.1 | ¥ 1,147,000 | |||||||||||
Convertible loan maturity date | Apr. 04, 2022 | ||||||||||||
Debt Instrument Accrued Interest | ¥ 468,400 | ¥ 35,400 | ¥ 36,800 |
Ordinary Share - Additional Inf
Ordinary Share - Additional Information (Details) - USD ($) | Dec. 10, 2021 | Sep. 01, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 28, 2018 | Jul. 17, 2017 |
Class Of Stock [Line Items] | |||||||
Ordinary shares, authorized amount | $ 50,000 | $ 50,000 | |||||
Ordinary shares, shares authorized | 50,000 | ||||||
Ordinary shares, par value | $ 1 | ||||||
Ordinary shares, shares, issued | 50,000 | ||||||
Ordinary shares, subdivided into multiple shares | 500,000,000 | ||||||
Founders | 2017 Plan | |||||||
Class Of Stock [Line Items] | |||||||
Ordinary shares, shares, issued | 10,000,000 | ||||||
Class A Ordinary Shares | |||||||
Class Of Stock [Line Items] | |||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | |||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, shares, issued | 42,812,245 | 42,812,245 | |||||
Stockholders' Equity Note, Stock Split | four ADSs to one Class A ordinary share | ||||||
Class B Ordinary Shares | |||||||
Class Of Stock [Line Items] | |||||||
Ordinary shares, shares authorized | 34,248,442 | 34,248,442 | 34,248,442 | ||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, shares, issued | 32,937,193 | 32,937,193 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) ¥ / shares in Units, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2019 | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2022 CNY (¥) $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2020 CNY (¥) ¥ / shares | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Intrinsic value of options exercised | ¥ 22.2 | ¥ 296.7 | ¥ 265.2 | |||
Share Option Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Estimated fair value of underlying shares | (per share) | ¥ 1.9 | $ 0.28 | ¥ 7.1 | ¥ 41.5 | ||
Fair value of share options vested | ¥ 66.2 | ¥ 115.2 | ¥ 346.5 | |||
Unrecognized share-based compensation expense | 43.8 | $ 43.8 | ||||
Share Option Plan | Jifen | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Incentive awards issuance, stock split conversion ratio | 0.2 | |||||
Share Option Plan | Employees | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation expense | ¥ 70.1 | ¥ 200.2 | ¥ 463.2 | |||
Equity Incentive Plan 2019 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of plans | 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Number of options, Outstanding beginning balance | 6,381,088 | 9,430,150 | 11,346,381 | |
Number of options granted | 170,953 | 1,041,585 | 2,607,249 | |
Number of options, Exercised | (355,745) | (3,049,281) | (3,144,786) | |
Number of options, Forfeited | (154,835) | (1,041,366) | (1,378,694) | |
Number of options, Outstanding ending balance | 6,041,461 | 6,381,088 | 9,430,150 | 11,346,381 |
Number of options, Vested and expected to vest | 6,053,661 | |||
Number of options, Exercisable | 5,682,238 | |||
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 | 5 years 1 month 6 days | 6 years 6 months | 7 years 2 months 12 days | 7 years 8 months 12 days |
Weighted Average Remaining Contractual Life, Vested and expected to vest | 5 years 1 month 6 days | |||
Weighted Average Remaining Contractual Life, Exercisable | 4 years 9 months 18 days | |||
Aggregate Intrinsic Value, Outstanding beginning balance | ¥ 45,236 | ¥ 391,330 | ¥ 1,079,661 | |
Aggregate Intrinsic Value, Outstanding ending balance | 11,609 | ¥ 45,236 | ¥ 391,330 | ¥ 1,079,661 |
Aggregate Intrinsic Value, Vested and expected to vest | 11,632 | |||
Aggregate Intrinsic Value, Exercisable | ¥ 10,919 | |||
Weighted Average Grant Date Fair Value, Outstanding beginning balance | ¥ 47.97 | ¥ 78.35 | ¥ 96.29 | |
Weighted Average Grant Date Fair Value, Granted | 2.74 | 46.77 | 104.85 | |
Weighted Average Grant Date Fair Value, Outstanding ending balance | ¥ 48.39 | ¥ 47.97 | ¥ 78.35 | ¥ 96.29 |
Weighted Average Grant Date Fair Value, Vested and expected to vest | 47.02 | |||
Weighted Average Grant Date Fair Value, Exercisable | 45.4 |
Share-based Compensation - Fair
Share-based Compensation - Fair Values of Share Options Granted (Details) | 12 Months Ended | ||
Dec. 31, 2022 Multiple $ / shares | Dec. 31, 2021 Multiple $ / shares | Dec. 31, 2020 Multiple $ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility, Minimum | 50.43% | 60.31% | 57.77% |
Expected volatility, Maximum | 52% | 61.94% | 58.65% |
Share Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 2.47% | 1.66% | 0.82% |
Risk-free interest rate, Maximum | 4.10% | 1.96% | 1.09% |
Exercise multiple | Multiple | 2.8 | 2.8 | 2.8 |
Expected dividend yield | 0% | 0% | 0% |
Contractual term | 10 years | 10 years | 10 years |
Share Options | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected forfeiture rate (post-vesting) | 0% | 0% | 0% |
Share price | $ 1.45 | $ 7.09 | $ 41.5 |
Share Options | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected forfeiture rate (post-vesting) | 20% | 20% | 20% |
Share price | $ 3.83 | $ 60.19 | $ 77.78 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Amount incurred for employee benefits | ¥ 50.6 | ¥ 98.7 | ¥ 97.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Income Tax [Line Items] | |||||
Income tax rate | 25% | 25% | 25% | ||
Deferred tax liability, intangible assets | ¥ 16,422 | ¥ 14,019 | |||
Intangible assets, amortization period | 10 years | ||||
Tax loss carryforwards | 787,270 | 978,345 | |||
Valuation allowances | ¥ 1,309,962 | 1,500,920 | |||
Preferential income tax rate | (0.10%) | (0.50%) | (0.30%) | ||
Tax year 2022 [Member] | |||||
Income Tax [Line Items] | |||||
Preferential income tax rate | 12.50% | ||||
Tax year 2023 [Member] | |||||
Income Tax [Line Items] | |||||
Preferential income tax rate | 12.50% | ||||
Tax year 2024 [Member] | |||||
Income Tax [Line Items] | |||||
Preferential income tax rate | 12.50% | ||||
Online Audio/Video Content Platform | |||||
Income Tax [Line Items] | |||||
Deferred tax liability, intangible assets | 14,000 | ||||
Intangible assets, amortization period | 10 years | ||||
Hong Kong | Profit Upto HK$2.0 Million | |||||
Income Tax [Line Items] | |||||
Income tax rate | 8.25% | ||||
Hong Kong | Profit After HK$2.0 Million | |||||
Income Tax [Line Items] | |||||
Income tax rate | 16.50% | ||||
PRC | |||||
Income Tax [Line Items] | |||||
Income tax rate | 25% | ||||
Withholding income tax rate for dividends distributed | 10% | ||||
Withholding income tax rate for dividends declared to holding company | 5% | ||||
Withholding income tax rate on dividends for Hong Kong holding company which recognized as beneficial owner | 25% | ||||
Income taxes preferential tax rate review period | 3 years | ||||
Income taxes preferential tax rate | 15% | ||||
Tax loss carryforwards | ¥ 2,409,400 | ¥ 3,311,900 | ¥ 2,409,400 | ¥ 4,434,500 | |
PRC | Enterprise Income Tax Law | |||||
Income Tax [Line Items] | |||||
Income tax rate | 25% | ||||
Maximum | |||||
Income Tax [Line Items] | |||||
Intangible assets, amortization period | 10 years | ||||
Maximum | Hong Kong | Profit Upto HK$2.0 Million | |||||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
PRC Statutory income tax rates | 25% | 25% | 25% |
Change in valuation allowance | (17.20%) | (16.90%) | (13.90%) |
Permanent book — tax difference | 4.10% | (6.10%) | (9.20%) |
Difference in EIT rates of certain subsidiaries | (12.00%) | (2.50%) | (2.20%) |
Total | (0.10%) | (0.50%) | (0.30%) |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Tax Expenses (Benefit) for Domestic and Foreign (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | ¥ 316,425 | ¥ 870,174 | ¥ 558,657 |
Foreign | 597,974 | 363,757 | 547,517 |
Total | ¥ 914,399 | ¥ 1,233,931 | ¥ 1,106,174 |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Portions of Income Tax Expense (Benefit) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ 1,355 | ¥ 5,453 | ¥ 1,396 | |
Deferred income tax benefit | (2,403) | $ (348) | (2,403) | (2,404) |
Income tax expense (benefit) | ¥ (1,048) | $ (152) | ¥ 3,050 | ¥ (1,008) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deductible temporary difference to accruals and others | ¥ 522,575 | ¥ 522,692 |
Tax losses carried forward | 978,345 | 787,270 |
Less: Valuation allowance | (1,500,920) | (1,309,962) |
Total of deferred tax assets | ||
Taxable temporary difference related to acquired right to operate an online audio/video content platform | 14,019 | 16,422 |
Total of deferred tax liabilities | ¥ 14,019 | ¥ 16,422 |
Income Taxes - Schedule of Move
Income Taxes - Schedule of Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | ¥ 1,309,962 | ¥ 1,056,253 | ¥ 985,440 |
Current year additions | 287,018 | 434,837 | 100,629 |
Current year reversals | (96,060) | (181,128) | (29,816) |
Ending balance | ¥ 1,500,920 | ¥ 1,309,962 | ¥ 1,056,253 |
Other Operating Income - Additi
Other Operating Income - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other income (expense), net | |||
Super deduction of input VAT | ¥ 21 | ¥ 33.1 | ¥ 48.7 |
Input Vat Additional Credit Admissible Percentage | 10% | ||
Other Operating Income (Expense) | |||
Other income (expense), net | |||
Value Added Tax Income | ¥ 40.8 | ¥ 73 | ¥ 30 |
Other Income_(Expenses), Net -
Other Income/(Expenses), Net - Additional Information (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 CNY (¥) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Other Income Expense [Line Items] | ||||
Fines and penalities paid by subsidiary | ¥ 82.8 | |||
Gain on disposal of subsidiary | ¥ 23.1 | |||
Loss contingency, Damages paid, Value | ¥ 10 | $ 1.4 | ||
Third Party | ||||
Other Income Expense [Line Items] | ||||
Equity method investment ownership percentage | 60% |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests and Noncontrolling Interests - Additional Information (Details) $ / shares in Units, ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares | Mar. 31, 2019 CNY (¥) shares | Mar. 31, 2019 USD ($) shares | Nov. 30, 2018 CNY (¥) shares | Nov. 30, 2018 USD ($) shares | May 31, 2018 | |
Minority Interest [Line Items] | |||||||||||||
Cash | ¥ 360,600 | $ 55,000,000 | |||||||||||
Finite lived Intangible Assets Acquired | ¥ | 136,100 | ||||||||||||
Preferred stock redemption discount of subsidiary | ¥ | 0 | ¥ 0 | ¥ 14,842 | ||||||||||
Overseas Subsidiary | |||||||||||||
Minority Interest [Line Items] | |||||||||||||
Ownership of subsidiaries | 62.23% | ||||||||||||
Equity interests percentage | 37.77% | ||||||||||||
Series B Convertible Redeemable Preferred Shares | |||||||||||||
Minority Interest [Line Items] | |||||||||||||
Preferred stock cash consideration | ¥ 135,400 | $ 20,000,000 | |||||||||||
Issuance Costs | ¥ | 435 | ||||||||||||
Preferred stock redemption discount of subsidiary | ¥ | 14,843 | ||||||||||||
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% | 10% | |||||||||||
Fun Literature | Series A Convertible Redeemable Preferred Shares | |||||||||||||
Minority Interest [Line Items] | |||||||||||||
Extended redemption period | 5 years | 5 years | |||||||||||
Mezzanine equity, shares issued | 1,097,212 | 1,097,212 | 3,763,440 | 3,763,440 | |||||||||
Mezzanine equity, aggregate amount of redemption | ¥ 27,500 | $ 4,000,000 | ¥ 97,100 | $ 14,000,000 | |||||||||
Conversion Ratio | 1 | 1 | |||||||||||
Fun Literature | Series C Convertible Redeemable Preferred Shares | |||||||||||||
Minority Interest [Line Items] | |||||||||||||
Preferred stock cash consideration | 733,200 | $ 111,800,000 | |||||||||||
Issuance Costs | ¥ 3,100 | $ 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 | 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 | 17,676,002 | ||||||||||
Fun Literature | Series B Convertible Redeemable Preferred Shares | |||||||||||||
Minority Interest [Line Items] | |||||||||||||
Simple interest on put option | 4% | ||||||||||||
Fun Literature | Developed Technology Rights | |||||||||||||
Minority Interest [Line Items] | |||||||||||||
Finite lived Intangible Assets Acquired | ¥ 136,100 | $ 20,800,000 | |||||||||||
Fun Literature | Content | |||||||||||||
Minority Interest [Line Items] | |||||||||||||
Finite lived Intangible Assets Acquired | ¥ 240,000 | $ 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 | ||||||||||||
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 (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |||
Beginning balance | ¥ 1,172,218 | ¥ 1,093,526 | ¥ 495,845 |
Issuance of Fun Preferred Shares, net of issuance costs | 0 | 733,238 | |
Foreign exchange impact | 117,540 | (30,034) | (37,374) |
Repurchase of Series B Preferred Shares | 0 | (146,460) | |
Accretion to redemption value of redeemable non-controlling interests | 124,677 | 108,726 | 48,277 |
Ending balance | ¥ 1,414,435 | ¥ 1,172,218 | ¥ 1,093,526 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Transaction and Balance Amount Due to/from Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |||
Services provided by the group | |||||||
Amounts due from related parties | ¥ 48,802 | [1] | $ 7,076 | ¥ 259,863 | [1] | ||
Amount due to related parties | 592 | [2],[3] | $ 86 | 6,928 | [2],[3] | ||
Advertising and Marketing Service Provided to Related Party | |||||||
Services provided by the group | |||||||
Amounts due from related parties | 48,800 | 246,500 | |||||
Account due to related party | [1] | 2,451 | 40,263 | ¥ 250,875 | |||
Advertising costs charged from a related party | |||||||
Services provided by the group | |||||||
Account due to a related party | [2] | 14,564 | 103,275 | 29,206 | |||
Gaming Cost Sharing Charged from a Related Party | |||||||
Services provided by the group | |||||||
Account due to a related party | [3] | 0 | 11 | 1,845 | |||
Others advertising and promotional costs charged from a related party [Member] | |||||||
Services provided by the group | |||||||
Account due to a related party | [4] | ¥ 7,945 | ¥ 15,840 | ¥ 4,192 | |||
[1]For the years ended December 31, 2020, 2021 and 2022, the service fee of RMB250.9 million, RMB39.8 million and RMB2.5 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, 2021 and 2022, the amounts due from related parties that pertains to accounts receivable from related party revenues generated was RMB246.5 million and RMB48.8 million respectively. Although the balance as of December 31, 2022 is overdue, 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.[2]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 RMB29.2 million, RMB103.3 million and RMB14.6 million for the years ended December 31, 2020, 2021 and 2022, respectively.[3]In July 2019, the Company invested RMB3.0 million in a game developing company which the founder’s controlled entity has significant influence in. The investment was measured using the measurement alternative recorded at cost less any impairment since it does not have a readily determinable fair value. The investment was fully impaired as of December 31, 2021. (Note 6). In 2019 the Group entered into a game cooperation agreement with this company and the Group is the principal in the arrangement. The total service fee represents the amount paid to this company in relation to the arrangement.[4]For the years ended December 31, 2020, 2021 and 2022, the service fee charged from related parties represented the expense charged from companies under common control of the founder which provided the Group advertising and marketing related promotion services. |
Related Party Transactions - _2
Related Party Transactions - Schedule of Transaction and Balance Amount Due to/from Related Parties (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jul. 31, 2019 CNY (¥) | |||
Related Party Transaction [Line Items] | ||||||||
Amounts due from related parties | ¥ 48,802 | [1] | $ 7,076 | ¥ 259,863 | [1] | |||
Related party transaction, investment | 8,000 | ¥ 20,000 | ¥ 3,000 | |||||
Advertising and Marketing Service Provided to Related Party | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amounts due from related parties | 48,800 | 246,500 | ||||||
Service fee charged to related parties | [1] | 2,451 | 40,263 | 250,875 | ||||
Advertising and Marketing Service Provided to Related Party | Founder of the Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Service fee charged to related parties | 2,500 | 39,800 | 250,900 | |||||
Advertisement Costs Charged from a Related Party | ||||||||
Related Party Transaction [Line Items] | ||||||||
Prepayment of service fee | [2] | ¥ 14,564 | ¥ 103,275 | ¥ 29,206 | ||||
[1]For the years ended December 31, 2020, 2021 and 2022, the service fee of RMB250.9 million, RMB39.8 million and RMB2.5 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, 2021 and 2022, the amounts due from related parties that pertains to accounts receivable from related party revenues generated was RMB246.5 million and RMB48.8 million respectively. Although the balance as of December 31, 2022 is overdue, 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.[2]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 RMB29.2 million, RMB103.3 million and RMB14.6 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
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) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net loss attributable to Qutoutiao Inc. | ¥ (914,767) | $ (132,630) | ¥ (1,239,617) | ¥ (1,104,439) |
Accretion to redemption value | (124,677) | (108,726) | (48,277) | |
Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) | 0 | 0 | 14,842 | |
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | ¥ (1,039,444) | $ (150,706) | ¥ (1,348,513) | ¥ (1,137,874) |
Denominator: | ||||
Basic | shares | 76,629,816 | 76,629,816 | 75,767,532 | 72,513,077 |
Diluted | shares | 76,629,816 | 76,629,816 | 75,767,532 | 72,513,077 |
Basic loss per share | (per share) | ¥ (13.56) | $ (1.97) | ¥ (17.8) | ¥ (15.69) |
Diluted loss per share | (per share) | ¥ (13.56) | $ (1.97) | ¥ (17.8) | ¥ (15.69) |
Series A Convertible Redeemable Preferred Shares | ||||
Numerator: | ||||
Accretion to redemption value | ¥ (15,947) | ¥ (14,089) | ¥ (13,509) | |
Series B Convertible Redeemable Preferred Shares | ||||
Numerator: | ||||
Accretion to redemption value | (24,918) | (21,726) | (33,188) | |
Gains on repurchase of convertible redeemable preferred shares of a subsidiary (Note 21) | 14,843 | |||
Series C Convertible Redeemable Preferred Shares | ||||
Numerator: | ||||
Accretion to redemption value | ¥ (83,812) | ¥ (73,081) | ¥ (1,580) | |
American Depositary Shares | ||||
Denominator: | ||||
Basic | shares | 30,651,926 | 30,651,926 | 30,307,013 | 29,005,231 |
Diluted | shares | 30,651,926 | 30,651,926 | 30,307,013 | 29,005,231 |
Basic loss per share | ¥ / shares | ¥ (33.91) | ¥ (44.5) | ¥ (39.23) | |
Diluted loss per share | ¥ / shares | ¥ (33.91) | ¥ (44.5) | ¥ (39.23) |
Basic and Diluted Net Loss pe_4
Basic and Diluted Net Loss per Share - Additional Information (Details) - ¥ / shares | 12 Months Ended | |||
Dec. 02, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share Basic [Line Items] | ||||
Weighted average number of shares subject to contingently issuable shares | 5,699,256 | 5,891,689 | 6,141,679 | |
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 | 2,279,702 | 2,356,676 | 2,456,672 | |
Class A Ordinary Shares | ||||
Earnings Per Share Basic [Line Items] | ||||
Description about ratio of stock conversion | For all the periods presented, basic and diluted loss per ADS, including the contingently issuable shares mentioned in (1) above, have been revised assuming the change of ADS ratio from a ratio of four ADSs to one Class A ordinary share to a new Ratio of two ADSs to five Class A ordinary shares occurred at the beginning of the earliest period presented. | current ADS Ratio of four (4) ADSs to one (1) Class A ordinary share to a new ADS Ratio of two (2) ADSs to five (5) Class A ordinary shares |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average | 219,083 | 546,035 | 1,353,808 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2022 CNY (¥) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | |
Operating Leased Assets [Line Items] | |||
Loss contingency, Damages paid, Value | ¥ 10,000 | $ 1.4 | |
Fines and penalities paid by subsidiary | ¥ 82,800 | ||
Additional Litigation Settlement | |||
Operating Leased Assets [Line Items] | |||
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, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | ¥ 11,000 | $ 1,595 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancellable Capital Expenditure (Details) - Dec. 31, 2022 ¥ in Thousands | CNY (¥) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | ¥ 188 | $ 27,260 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets Disclosure [Line Items] | |
Restrictions on net assets of PRC subsidiaries, threshold percentage | 25% |
Variable Interest Entities | |
Restricted Net Assets Disclosure [Line Items] | |
Percentage of transfer of net income after tax to statutory general reserve | 10% |
Percentage of reserve funds that reached registered capital | 50% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Apr. 30, 2023 | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Subsequent Event | Alibaba Investment Limited | Supplemental Agreement | |||||
Subsequent Event [Line Items] | |||||
Aggregate principal amount of convertible loan | $ | $ 500,000 | ||||
Accrued interest | $ | $ 500,000 | ||||
Building No.8 office space in Shanghai, China. | |||||
Subsequent Event [Line Items] | |||||
Lesee Operating lease average lease payment per month | ¥ | ¥ 569,800 | ||||
Building No.2 office space in Shanghai, China | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Lessee, operating lease, term of contract | 3 years | ||||
Lesee Operating lease average lease payment per month | ¥ | ¥ 186,300 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 122,801 | $ 17,804 | ¥ 240,351 | ¥ 494,475 | |
Prepayments and other current assets | 158,811 | 23,025 | 172,877 | ||
Total current assets | 481,825 | 69,858 | 1,862,509 | ||
Other non-current assets | 2,902 | 421 | 4,809 | ||
Total non-current assets | 99,711 | 14,457 | 217,966 | ||
Total assets | 581,536 | 84,315 | 2,080,475 | ||
Current liabilities: | |||||
Total current liabilities | 2,736,222 | 396,715 | 3,263,673 | ||
Non-current liabilities: | |||||
Other non-current liabilities | 0 | 0 | 1,733 | ||
Total non-current liabilities | 21,618 | 3,135 | 34,140 | ||
Total liabilities | 2,757,840 | 399,850 | 3,297,813 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 5,049,458 | 732,103 | 4,979,353 | ||
Treasury stock (US$0.0001 par value; 4,441,353 and 4,085,608 shares as of December 31, 2021 and 2022, respectively) | 142,229 | 20,621 | 142,229 | ||
Accumulated other comprehensive loss | (102,834) | (14,911) | 129,010 | ||
Accumulated deficit | (8,395,200) | (1,217,187) | (7,355,740) | ||
Total shareholders' deficit | (2,389,556) | ¥ (1,285,363) | ¥ (705,344) | ||
Total liabilities, mezzanine equity and shareholders' deficit | 581,536 | 84,315 | 2,080,475 | ||
Class A Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 26 | 4 | 26 | ||
Class B Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 24 | 3 | 24 | ||
Parent Company | |||||
Current assets: | |||||
Cash and cash equivalents | 50,989 | 7,393 | 19,633 | ||
Amount due from subsidiaries and VIEs of the Company | 3,698,706 | 536,262 | 3,521,857 | ||
Prepayments and other current assets | 2,935 | 425 | 4,605 | ||
Total current assets | 3,752,630 | 544,080 | 3,546,095 | ||
Other non-current assets | 1,476 | 214 | 2,645 | ||
Total non-current assets | 1,476 | 214 | 2,645 | ||
Total assets | 3,754,106 | 544,294 | 3,548,740 | ||
Current liabilities: | |||||
Accrued expenses and other current liabilities | 978 | 143 | 3,312 | ||
Amounts due to subsidiaries and VIEs of the Company | 181,598 | 26,329 | 281,201 | ||
Convertible loan—current | 1,746,188 | 253,173 | 1,182,963 | ||
Total current liabilities | 1,928,764 | 279,645 | 1,467,476 | ||
Non-current liabilities: | |||||
Other non-current liabilities | 0 | 0 | 1,733 | ||
Investment deficit of subsidiaries and VIEs | 5,416,081 | 785,258 | 4,469,087 | ||
Total non-current liabilities | 5,416,081 | 785,258 | 4,470,820 | ||
Total liabilities | 7,344,845 | 1,064,903 | 5,938,296 | ||
Shareholders' deficit: | |||||
Additional paid-in capital | 5,049,458 | 732,103 | 4,979,353 | ||
Treasury stock (US$0.0001 par value; 4,441,353 and 4,085,608 shares as of December 31, 2021 and 2022, respectively) | (142,229) | (20,621) | (142,229) | ||
Accumulated other comprehensive loss | (102,834) | (14,911) | 129,010 | ||
Accumulated deficit | (8,395,184) | (1,217,187) | (7,355,740) | ||
Total shareholders' deficit | (3,590,739) | (520,609) | (2,389,556) | ||
Total liabilities, mezzanine equity and shareholders' deficit | 3,754,106 | 544,294 | 3,548,740 | ||
Parent Company | Class A Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | 26 | 4 | 26 | ||
Parent Company | Class B Ordinary Shares | |||||
Shareholders' deficit: | |||||
Ordinary shares | ¥ 24 | $ 3 | ¥ 24 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | 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 | $ 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 | 42,812,245 | |||
Ordinary shares, shares, outstanding | 38,726,637 | 38,370,892 | |||
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 | 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 | 4,085,608 | 4,441,353 | |||
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 | 42,812,245 | |||
Ordinary shares, shares, outstanding | 38,726,637 | 38,370,892 | |||
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) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Operating expenses: | ||||
General and administrative | ¥ 155,445 | $ 22,537 | ¥ 431,913 | ¥ 392,816 |
Total operating expenses | 900,765 | 130,598 | 4,467,298 | 4,722,247 |
Interest income | 1,370 | 199 | 3,174 | 10,419 |
Interest expense | (468,612) | (67,942) | (35,477) | (38,143) |
Foreign exchange related gains, net | (903) | (131) | (1) | (7,183) |
Loss before income taxes | (914,399) | (132,577) | (1,233,931) | (1,106,174) |
Net loss | (914,800) | (132,630) | (1,240,176) | (1,105,166) |
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | 14,842 | |||
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | (1,039,444) | (150,706) | (1,348,513) | (1,137,874) |
Net loss | (914,800) | (132,630) | (1,240,176) | (1,105,166) |
Foreign currency translation adjustment, net of nil tax | (231,844) | (33,614) | 44,690 | 102,254 |
Comprehensive loss attributable to Qutoutiao Inc. | (1,146,611) | (166,244) | (1,194,927) | (1,002,185) |
Parent Company | ||||
Operating expenses: | ||||
General and administrative | (77,185) | (11,191) | (208,594) | (471,730) |
Total operating expenses | (77,185) | (11,191) | (208,594) | (471,730) |
Loss from operations | (77,185) | (11,191) | (208,594) | (471,730) |
Investment loss | 0 | 0 | (27,589) | 0 |
Interest income | 585 | 85 | 0 | 2,819 |
Interest expense | (468,358) | (67,906) | (30,683) | (36,774) |
Foreign exchange related gains, net | (220) | (34) | 0 | (7) |
Other expenses, net | (42) | (6) | (41) | (42) |
Loss from subsidiaries and VIEs | (369,547) | (53,578) | (972,710) | (598,705) |
Loss before income taxes | (914,767) | (132,630) | (1,239,617) | (1,104,439) |
Net loss | (914,767) | (132,630) | (1,239,617) | (1,104,439) |
Gains on repurchase of convertible redeemable preferred shares of a subsidiary | 0 | 0 | 0 | 14,842 |
Net loss attributable to Qutoutiao Inc.'s ordinary shareholders | (1,039,444) | (150,706) | (1,348,513) | (1,137,874) |
Net loss | (914,767) | (132,630) | (1,239,617) | (1,104,439) |
Foreign currency translation adjustment, net of nil tax | (231,844) | (33,614) | 44,690 | 102,254 |
Comprehensive loss attributable to Qutoutiao Inc. | (1,146,611) | (166,244) | (1,194,927) | (1,002,185) |
Parent Company | Subsidiary | ||||
Operating expenses: | ||||
Accretion to convertible redeemable preferred shares redemption value | ¥ (124,677) | $ (18,076) | ¥ (108,896) | ¥ (48,277) |
Condensed Financial Statement_6
Condensed Financial Statements of Parent Company - Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Condensed Financial Statements Captions [Line Items] | ||||
Cash flows used in operating activities | ¥ (443,800) | $ (64,344) | ¥ (279,122) | ¥ (863,774) |
Cash flows (used in)/provided by investing activities | 267,555 | 38,792 | 75,521 | 782,545 |
Cash flows used in financing activities | (20,000) | (2,900) | (66,094) | 307,746 |
Effect of exchange rate changes on cash and cash equivalents | 10,810 | 1,567 | (9,263) | (7,415) |
Cash, cash equivalents and restricted cash at the beginning of year | 315,833 | 45,791 | 594,791 | 375,689 |
Cash, cash equivalents and restricted cash at the end of year | 130,401 | 18,906 | 315,833 | 594,791 |
Parent Company | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Cash flows used in operating activities | (39,578) | (5,738) | (14,807) | (354) |
Cash flows (used in)/provided by investing activities | 68,089 | 9,872 | (32,506) | (10,008) |
Cash flows used in financing activities | 0 | 0 | 0 | (135,744) |
Effect of exchange rate changes on cash and cash equivalents | 2,845 | 412 | 1 | (240) |
Net increase in cash and cash equivalents | 31,356 | 4,546 | 17,700 | (146,346) |
Cash, cash equivalents and restricted cash at the beginning of year | 19,633 | 2,847 | 1,933 | 148,279 |
Cash, cash equivalents and restricted cash at the end of year | ¥ 50,989 | $ 7,393 | ¥ 19,633 | ¥ 1,933 |