Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38591 |
Entity Registrant Name | PDD Holdings Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | First Floor, 25 St Stephen’s Green |
Entity Address, City or Town | Dublin 2 |
Entity Address, Postal Zip Code | D02 XF99 |
Entity Address, Country | IE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001737806 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
ICFR Auditor Attestation Flag | true |
Auditor Name | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 1408 |
Auditor Location | Shanghai, the People’s Republic of China |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | First Floor, 25 St Stephen’s Green |
Entity Address, City or Town | Dublin 2 |
Entity Address, Postal Zip Code | D02 XF99 |
Entity Address, Country | IE |
Contact Personnel Name | Jianchong Zhu |
City Area Code | +353-1 |
Local Phone Number | 5397938 |
Contact Personnel Email Address | investor@pddholdings.com |
Class A ordinary shares | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.000005 per share |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 5,278,348,396 |
No Trading Symbol Flag | true |
Class A ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 0 |
ADSs | |
Document and Entity Information | |
Title of 12(b) Security | American Depositary Shares (one Americandepositary share representing four Class Aordinary shares, par value US$0.000005 per share) |
Trading Symbol | PDD |
Security Exchange Name | NASDAQ |
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 | ¥ 34,326,192 | $ 4,976,830 | ¥ 6,426,715 |
Restricted cash | 57,974,225 | 8,405,473 | 59,617,256 |
Receivables from online payment platforms | 587,696 | 85,208 | 673,737 |
Short-term investments | 115,112,554 | 16,689,751 | 86,516,618 |
Amounts due from related parties | 6,318,830 | 916,144 | 4,250,155 |
Prepayments and other current assets | 2,298,379 | 333,235 | 3,424,687 |
Total current assets | 216,617,876 | 31,406,641 | 160,909,168 |
Non-current assets | |||
Property, equipment and software, net | 1,044,847 | 151,489 | 2,203,323 |
Intangible assets | 134,002 | 19,428 | 701,220 |
Right-of-use assets | 1,416,081 | 205,312 | 938,537 |
Deferred tax assets | 1,045,030 | 151,515 | 31,504 |
Other non-current assets | 16,862,117 | 2,444,777 | 16,425,966 |
Total non-current assets | 20,502,077 | 2,972,521 | 20,300,550 |
Total Assets | 237,119,953 | 34,379,162 | 181,209,718 |
Current liabilities | |||
Amounts due to related parties (including amounts due to related parties of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB1,962,029 and RMB1,671,246 (US$242,308) as of December 31, 2021 and 2022, respectively) | 1,676,391 | 243,054 | 1,963,007 |
Customer advances and deferred revenues (including customer advances and deferred revenues of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB1,158,738 and RMB1,369,573 (US$198,569) as of December 31, 2021 and 2022, respectively) | 1,389,655 | 201,481 | 1,166,764 |
Payable to merchants (including payable to merchants of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB61,947,517 and RMB62,006,946 (US$8,990,162) as of December 31, 2021 and 2022, respectively) | 63,316,695 | 9,180,058 | 62,509,714 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB9,360,166 and RMB11,817,208 (US$1,713,334) as of December 31, 2021 and 2022, respectively) | 20,960,723 | 3,039,019 | 14,085,513 |
Merchant deposits (including merchant deposits of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB13,360,409 and RMB14,681,913 (US$2,128,677) as of December 31, 2021 and 2022, respectively) | 15,058,229 | 2,183,238 | 13,577,552 |
Convertible bonds, current portion | 13,885,751 | 2,013,245 | |
Lease liabilities (including lease liabilities of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB138,667 and RMB156,776 (US$22,730) as of December 31, 2021 and 2022, respectively) | 602,036 | 87,287 | 427,164 |
Total current liabilities | 116,889,480 | 16,947,382 | 93,729,714 |
Non-current liabilities | |||
Convertible bonds | 1,575,755 | 228,463 | 11,788,907 |
Lease liabilities (including lease liabilities of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB305,068 and RMB290,412 (US$42,106) as of December 31, 2021 and 2022, respectively) | 870,782 | 126,252 | 544,263 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE and its subsidiaries without recourse to the primary beneficiary of RMB19,217 and nil as of December 31, 2021 and 2022, respectively) | 13,025 | 1,888 | 31,291 |
Other non-current liabilities | 996 | ||
Total non-current liabilities | 2,459,562 | 356,603 | 12,365,457 |
Total liabilities | 119,349,042 | 17,303,985 | 106,095,171 |
Commitments and contingencies | |||
Shareholders' equity | |||
Additional paid-in capital | 99,250,468 | 14,389,965 | 95,340,819 |
Statutory reserves | 5,000 | 725 | |
Accumulated other comprehensive (loss)/income | 3,322,238 | 481,679 | (2,519,900) |
(Accumulated deficits)/retained earnings | 15,193,035 | 2,202,783 | (17,706,533) |
Total shareholders' equity | 117,770,911 | 17,075,177 | 75,114,547 |
Total liabilities and shareholders' equity | 237,119,953 | 34,379,162 | 181,209,718 |
Class A ordinary shares | |||
Shareholders' equity | |||
Class A ordinary shares (US$0.000005 par value; 77,300,000,000 shares authorized, 5,057,542,676 and 5,278,348,396 shares issued and outstanding as of December 31, 2021 and 2022, respectively) | ¥ 170 | $ 25 | ¥ 161 |
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 |
Amounts due to related parties | ¥ 1,676,391 | $ 243,054 | ¥ 1,963,007 |
Customer advances and deferred revenues | 1,389,655 | 201,481 | 1,166,764 |
Payable to merchants | 63,316,695 | 9,180,058 | 62,509,714 |
Accrued expenses and other liabilities | 20,960,723 | 3,039,019 | 14,085,513 |
Merchant deposits | 15,058,229 | 2,183,238 | 13,577,552 |
Lease liabilities | 602,036 | 87,287 | 427,164 |
Lease liabilities | 870,782 | 126,252 | 544,263 |
Deferred tax liabilities | ¥ 13,025 | $ 1,888 | ¥ 31,291 |
Ordinary shares, par value | $ / shares | $ 0.000005 | ||
Class A ordinary shares | |||
Ordinary shares, par value | $ / shares | $ 0.000005 | ||
Ordinary shares, shares authorized | 77,300,000,000 | 77,300,000,000 | 77,300,000,000 |
Ordinary shares, issued | 5,278,348,396 | 5,278,348,396 | 5,057,542,676 |
Ordinary shares, outstanding | 5,278,348,396 | 5,278,348,396 | 5,057,542,676 |
Class B ordinary shares | |||
Ordinary shares, outstanding | 0 | 0 | 0 |
Consolidated VIEs | |||
Amounts due to related parties | ¥ 1,671,246 | $ 242,308 | ¥ 1,962,029 |
Customer advances and deferred revenues | 1,369,573 | 198,569 | 1,158,738 |
Payable to merchants | 62,006,946 | 8,990,162 | 61,947,517 |
Accrued expenses and other liabilities | 11,817,208 | 1,713,334 | 9,360,166 |
Merchant deposits | 14,681,913 | 2,128,677 | 13,360,409 |
Lease liabilities | 156,776 | 22,730 | 138,667 |
Lease liabilities | 290,412 | $ 42,106 | 305,068 |
Deferred tax liabilities | ¥ | ¥ 0 | ¥ 19,217 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(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 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | ||||
Revenues (including services provided to a related party of nil, nil and RMB10,765 (US$1,561) for the years ended December 31, 2020, 2021 and 2022, respectively) | ¥ 130,557,589 | $ 18,929,071 | ¥ 93,949,939 | ¥ 59,491,865 |
Costs of revenues (including services received from related parties of RMB4,570,292, RMB5,166,381 and RMB5,353,661 (US$776,208) for the years ended December 31, 2020, 2021 and 2022, respectively) | (31,462,298) | (4,561,604) | (31,718,093) | (19,278,641) |
Gross profit | 99,095,291 | 14,367,467 | 62,231,846 | 40,213,224 |
Sales and marketing expenses (including services received from a related party of RMB4,166,230, RMB2,857,063 and RMB2,004,654 (US$290,648) for the years ended December 31, 2020, 2021 and 2022, respectively) | (54,343,719) | (7,879,099) | (44,801,720) | (41,194,599) |
General and administrative expenses | (3,964,935) | (574,862) | (1,540,774) | (1,507,297) |
Research and development expenses (including services received from related parties of RMB1,850,321, RMB604,605 and RMB356,789 (US$51,730) for the years ended December 31, 2020, 2021 and 2022, respectively) | (10,384,716) | (1,505,642) | (8,992,590) | (6,891,653) |
Total operating expenses | (68,693,370) | (9,959,603) | (55,335,084) | (49,593,549) |
Operating (loss)/profit | 30,401,921 | 4,407,864 | 6,896,762 | (9,380,325) |
Interest and investment income, net | 3,997,100 | 579,525 | 3,061,662 | 2,455,366 |
Interest expenses | (51,655) | (7,489) | (1,231,002) | (757,336) |
Foreign exchange gain/(loss) | (149,710) | (21,706) | 71,750 | 225,197 |
Other income, net | 2,221,358 | 322,066 | 656,255 | 193,702 |
(Loss)/profit before income tax and share of results of equity investees | 36,419,014 | 5,280,260 | 9,455,427 | (7,263,396) |
Income tax expenses | (4,725,667) | (685,157) | (1,933,585) | 0 |
Share of results of equity investees | (155,285) | (22,514) | 246,828 | 83,654 |
Net (loss)/income | 31,538,062 | 4,572,589 | 7,768,670 | (7,179,742) |
Net (loss)/income attributable to ordinary shareholders | ¥ 31,538,062 | $ 4,572,589 | ¥ 7,768,670 | ¥ (7,179,742) |
(Loss)/ earnings per share: | ||||
Basic | (per share) | ¥ 6.24 | $ 0.90 | ¥ 1.55 | ¥ (1.51) |
Diluted | (per share) | ¥ 5.48 | $ 0.79 | ¥ 1.36 | ¥ (1.51) |
Shares used in (loss)/ earnings per share computation: | ||||
Basic | 5,057,540,124 | 5,057,540,124 | 5,012,651,334 | 4,768,343,300 |
Diluted | 5,761,291,439 | 5,761,291,439 | 5,713,764,297 | 4,768,343,300 |
Other comprehensive (loss)/income | ||||
Foreign currency translation difference, net of tax of nil | ¥ 5,860,304 | $ 849,664 | ¥ (1,472,172) | ¥ (2,495,958) |
Unrealized losses on available-for-sale investments, net of tax | (18,166) | (2,634) | ||
Total other comprehensive (loss)/income | 5,842,138 | 847,030 | (1,472,172) | (2,495,958) |
Comprehensive (loss)/ income | ¥ 37,380,200 | $ 5,419,619 | ¥ 6,296,498 | ¥ (9,675,700) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Services provided to related party | ¥ 10,765 | $ 1,561 | ¥ 0 | ¥ 0 |
Foreign currency translation difference, tax | 0 | 0 | 0 | |
Costs of revenues | ||||
Services rendered from related party | 5,353,661 | 776,208 | 5,166,381 | 4,570,292 |
Sales and marketing expenses | ||||
Services rendered from related party | 2,004,654 | 290,648 | 2,857,063 | 4,166,230 |
Research and development expenses | ||||
Services rendered from related party | ¥ 356,789 | $ 51,730 | ¥ 604,605 | ¥ 1,850,321 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Common share Balance CNY (¥) shares | Common share CNY (¥) shares | Common share USD ($) shares | Additional paid in capital Cumulative effect of change in accounting principle CNY (¥) | Additional paid in capital Balance CNY (¥) | Additional paid in capital CNY (¥) | Additional paid in capital USD ($) | Statutory reserves CNY (¥) | Statutory reserves USD ($) | Accumulated Other Comprehensive Income [Member] Cumulative effect of change in accounting principle CNY (¥) | Accumulated Other Comprehensive Income [Member] Balance CNY (¥) | Accumulated Other Comprehensive Income [Member] CNY (¥) | Accumulated Other Comprehensive Income [Member] USD ($) | (Accumulated deficits)/retained earnings Cumulative effect of change in accounting principle CNY (¥) | (Accumulated deficits)/retained earnings Balance CNY (¥) | (Accumulated deficits)/retained earnings CNY (¥) | (Accumulated deficits)/retained earnings USD ($) | Cumulative effect of change in accounting principle CNY (¥) | Balance CNY (¥) | CNY (¥) shares | USD ($) shares |
Balance at beginning of the year at Dec. 31, 2019 | ¥ 148 | ¥ 41,493,949 | ¥ 1,448,230 | ¥ (18,295,461) | ¥ 24,646,866 | ||||||||||||||||
Balance at beginning (in shares) at Dec. 31, 2019 | shares | 4,650,028,688 | 4,650,028,688 | |||||||||||||||||||
Changes in equity | |||||||||||||||||||||
Net Income(loss) | (7,179,742) | (7,179,742) | |||||||||||||||||||
Foreign currency translation difference | (2,495,958) | (2,495,958) | |||||||||||||||||||
Follow-on offering | ¥ 5 | 26,805,433 | 26,805,438 | ||||||||||||||||||
Follow-on offering (in shares) | shares | 132,020,000 | 132,020,000 | |||||||||||||||||||
Issuance of ordinary shares for private placements | ¥ 5 | 11,063,334 | 11,063,339 | ||||||||||||||||||
Issuance of ordinary shares for private placements (in shares) | shares | 150,810,912 | 150,810,912 | |||||||||||||||||||
Equity component of convertible bonds | 3,405,360 | 3,405,360 | |||||||||||||||||||
Shares issued to depository bank (in shares) | shares | 12,050,000 | 12,050,000 | |||||||||||||||||||
Exercise of share-based awards (in shares) | shares | 4,950,492 | 4,950,492 | |||||||||||||||||||
Settlement of share-based compensation with shares held by depository bank (in shares) | shares | 4,950,492 | 4,950,492 | |||||||||||||||||||
Conversion of the convertible bonds into ordinary shares | ¥ 1 | 317,541 | 317,542 | ||||||||||||||||||
Conversion of the convertible bonds into ordinary shares (in shares) | shares | 9,900,368 | 9,900,368 | |||||||||||||||||||
Share-based compensation | 3,613,043 | 3,613,043 | |||||||||||||||||||
Balance at end of the year at Dec. 31, 2020 | ¥ 159 | 86,698,660 | (1,047,728) | (25,475,203) | 60,175,888 | ||||||||||||||||
Balance at end (in shares) at Dec. 31, 2020 | shares | 4,954,809,968 | 4,954,809,968 | |||||||||||||||||||
Changes in equity | |||||||||||||||||||||
Net Income(loss) | 7,768,670 | 7,768,670 | |||||||||||||||||||
Foreign currency translation difference | (1,472,172) | (1,472,172) | |||||||||||||||||||
Conversion of convertible preferred shares to ordinary shares | ¥ 2 | ||||||||||||||||||||
Shares issued to depository bank (in shares) | shares | 40,000,000 | 40,000,000 | |||||||||||||||||||
Exercise of share-based awards | 375 | 375 | |||||||||||||||||||
Exercise of share-based awards (in shares) | shares | 24,395,952 | 24,395,952 | |||||||||||||||||||
Settlement of share-based compensation with shares held by depository bank (in shares) | shares | (24,395,952) | (24,395,952) | |||||||||||||||||||
Conversion of the convertible bonds into ordinary shares | 3,867,054 | 3,867,056 | |||||||||||||||||||
Conversion of the convertible bonds into ordinary shares (in shares) | shares | 62,732,708 | 62,732,708 | |||||||||||||||||||
Share-based compensation | 4,774,730 | 4,774,730 | |||||||||||||||||||
Balance at end of the year at Dec. 31, 2021 | ¥ 161 | ¥ 161 | ¥ (3,818,926) | ¥ 91,521,893 | 95,340,819 | ¥ 136,096 | ¥ (2,383,804) | (2,519,900) | ¥ 1,366,506 | ¥ (16,340,027) | (17,706,533) | ¥ (2,316,324) | ¥ 72,798,223 | 75,114,547 | |||||||
Balance at end (in shares) at Dec. 31, 2021 | shares | 5,057,542,676 | 5,057,542,676 | 5,057,542,676 | ||||||||||||||||||
Changes in equity | |||||||||||||||||||||
Net Income(loss) | 31,538,062 | 31,538,062 | $ 4,572,589 | ||||||||||||||||||
Foreign currency translation difference | 5,724,208 | 5,724,208 | |||||||||||||||||||
Net change in unrealized losses on available-for-sale debt securities | (18,166) | ¥ (18,166) | $ (2,634) | ||||||||||||||||||
Shares issued to depository bank (in shares) | shares | 220,805,720 | 220,805,720 | 273,455,720 | 273,455,720 | |||||||||||||||||
Exercise of share-based awards | ¥ 9 | 10,210 | ¥ 10,219 | ||||||||||||||||||
Exercise of share-based awards (in shares) | shares | 241,135,744 | 241,135,744 | |||||||||||||||||||
Settlement of share-based compensation with shares held by depository bank (in shares) | shares | (241,135,744) | (241,135,744) | |||||||||||||||||||
Share-based compensation | 7,718,365 | 7,718,365 | |||||||||||||||||||
Appropriation to statutory reserves | ¥ 5,000 | (5,000) | |||||||||||||||||||
Balance at end of the year at Dec. 31, 2022 | ¥ 170 | $ 25 | ¥ 99,250,468 | $ 14,389,965 | ¥ 5,000 | $ 725 | ¥ 3,322,238 | $ 481,679 | ¥ 15,193,035 | $ 2,202,783 | ¥ 117,770,911 | $ 17,075,177 | |||||||||
Balance at end (in shares) at Dec. 31, 2022 | shares | 5,278,348,396 | 5,278,348,396 |
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 FLOW FROM OPERATING ACTIVITIES | ||||
Net (loss)/income | ¥ 31,538,062 | $ 4,572,589 | ¥ 7,768,670 | ¥ (7,179,742) |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | ||||
Interest expense | 51,655 | 7,489 | 1,231,002 | 757,336 |
Allowance for credit losses | 118,384 | 17,164 | 49,300 | 43,434 |
Depreciation and amortization | 2,224,169 | 322,474 | 1,495,380 | 651,523 |
Deferred income tax, net | (1,028,586) | (149,131) | (213) | 0 |
Amortization of right-of-use assets | 510,915 | 74,076 | 348,863 | 148,945 |
Interest and investment gain, net | (606,447) | (87,927) | (146,972) | (469,486) |
Loss/(gain) on disposal of property and equipment | 10,697 | 1,551 | (258) | 24 |
Share-based compensation | 7,718,365 | 1,119,058 | 4,774,730 | 3,613,043 |
Foreign exchange (gain)/loss | 149,710 | 21,706 | (71,750) | (225,197) |
Share of results of equity investees | 155,285 | 22,514 | (246,828) | (83,654) |
Fair value change of investments | 242,236 | 35,121 | 22,170 | (104,068) |
Gain on extinguishment of convertible bonds | (2,788) | (5,188) | ||
Changes in operating assets and liabilities: | ||||
Receivables from online payment platforms | 86,041 | 12,475 | 55,811 | 321,426 |
Amounts due from related parties | (2,068,675) | (299,930) | (10,086) | (1,636,541) |
Prepayments and other current assets | 758,282 | 109,941 | 1,744,645 | (4,048,536) |
Customer advances and deferred revenues | 222,891 | 32,316 | (1,256,426) | 1,817,220 |
Amounts due to related parties | (286,616) | (41,555) | (1,422,856) | 1,882,971 |
Payable to merchants | 749,373 | 108,649 | 8,686,493 | 23,934,151 |
Accrued expenses and other liabilities | 7,003,998 | 1,015,484 | 3,492,038 | 5,849,148 |
Merchant deposits | 1,480,677 | 214,678 | 2,651,233 | 3,085,407 |
Lease liabilities | (487,068) | (70,618) | (354,123) | (137,936) |
Other non-current assets | (34,492) | (5,001) | (23,102) | (13,182) |
Other non-current liabilities | (996) | (144) | (1,922) | (4,471) |
Net cash generated from operating activities | 48,507,860 | 7,032,979 | 28,783,011 | 28,196,627 |
CASH FLOW FROM INVESTING ACTIVITIES | ||||
Purchase of short-term time deposits, held to maturities and other investments | (160,414,453) | (23,257,909) | (116,639,550) | (86,438,068) |
Proceeds from sales of short-term time deposits, held to maturities and other investments | 141,928,351 | 20,577,677 | 97,547,038 | 55,083,390 |
Purchases of available-for-sale investments | (3,581,868) | (519,322) | ||
Purchase of long-term time deposits, held to maturities and other investments | (6,795,838) | (985,305) | (13,628,052) | (6,722,228) |
Proceeds from sales of long-term time deposits, held to maturities and other investments | 7,137,814 | 1,034,886 | ||
Purchase of property, equipment and software and intangible assets | (635,716) | (92,170) | (3,287,232) | (43,046) |
Proceeds from disposal of property and equipment | 40 | 6 | 394 | 51 |
Loans to a related party | (238,000) | |||
Others | 445,037 | |||
Net cash used in investing activities | (22,361,670) | (3,242,137) | (35,562,365) | (38,357,901) |
CASH FLOW FROM FINANCING ACTIVITIES | ||||
Net proceeds from the follow-on offerings | 26,805,438 | |||
Proceeds from the private placements | 11,063,339 | |||
Net proceeds from the issuance of convertible bonds | 13,024,199 | |||
Proceeds from short-term borrowings | 1,828,923 | |||
Repayment of short-term borrowings | (1,875,472) | (922,897) | ||
Others | 10,079 | 1,461 | 318 | (6) |
Net cash generated from/(used in) financing activities | 10,079 | 1,461 | (1,875,154) | 51,798,996 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 100,177 | 14,524 | (145,157) | (139,943) |
Increase/(decrease) in cash, cash equivalents and restricted cash | 26,256,446 | 3,806,827 | (8,799,665) | 41,497,779 |
Cash, cash equivalents and restricted cash at beginning of the year | 66,043,971 | 9,575,476 | 74,843,636 | 33,345,857 |
Cash, cash equivalents and restricted cash at end of the year | 92,300,417 | 13,382,303 | 66,043,971 | 74,843,636 |
Supplement disclosure of cash flow information: | ||||
Interest received | 3,567,738 | 517,273 | 2,936,860 | 1,881,812 |
Income taxes paid | 4,881,252 | 707,715 | ||
Supplement disclosure of non-cash operating activities: | ||||
Recognition of right-of-use assets and lease liabilities | 1,068,063 | 154,855 | 704,142 | 265,821 |
Supplement disclosure of non-cash investing activities: | ||||
Purchase of property, equipment and software included in accrued expenses and other liabilities | ¥ 136,411 | $ 19,778 | ¥ 194,385 | ¥ 162,641 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Reconciliation of Cash, Cash Equivalents and Restricted Cash ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Reconciliation of cash, cash equivalents and restricted cash: | ||||||
Cash and cash equivalents | ¥ 34,326,192 | $ 4,976,830 | ¥ 6,426,715 | ¥ 22,421,189 | ||
Restricted cash | 57,974,225 | 8,405,473 | 59,617,256 | 52,422,447 | ||
Total cash, cash equivalents and restricted cash in the statements of cash flows | ¥ 92,300,417 | $ 13,382,303 | ¥ 66,043,971 | $ 9,575,476 | ¥ 74,843,636 | ¥ 33,345,857 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization | |
Organization | 1. Organization PDD Holdings Inc. (the ‘‘Company’’), formerly known as Pinduoduo Inc., was incorporated in the Cayman Islands on April 20, 2015 under the Cayman Islands Companies Law as an exempted company with limited liability. The Company through its consolidated subsidiaries, variable interest entity (the ‘‘VIE’’) and the subsidiaries of the VIE (collectively, the ‘‘Group’’) are principally engaged in the merchandise sales and the provision of online marketplace to help merchants leverage the power of the internet to engage with their customers in the People’s Republic of China (the ‘‘PRC’’ or ‘‘China’’). Due to the PRC legal restrictions on foreign ownership and investment in such business, the Company conducts its primary business operations through its VIE and subsidiaries of the VIE. As of December 31, 2022, the details of the Company’s major subsidiaries, consolidated VIE and the subsidiaries of the VIE are as follows: Percentage of Date of Place of ownership by the Principal Entity incorporation incorporation Company activities Direct Indirect Subsidiaries: HongKong Walnut Street Limited (“Walnut HK”) April 28, 2015 Hong Kong 100 % — Holding company Hangzhou Weimi Network Technology Co., Ltd. (“Hangzhou Weimi” or the “WFOE”) May 28, 2015 PRC 100 % — Technology research and development Walnut Street (Shanghai) Information Technology Co., Ltd. (“Walnut Shanghai”) January 25,2018 PRC 100 % — Technology research and development Shenzhen Qianhai Xinzhijiang Information Technology Co., Ltd. (“Xinzhijiang”) April 25, 2018 PRC 100 % — E-commerce platform Shanghai Yucan Information Technology Co., Ltd. September 14, 2020 PRC 100 % — E-commerce platform VIE: Hangzhou Aimi Network Technology Co., Ltd. (“VIE”) April 14, 2015 PRC — 100 % E-commerce platform VIE’s subsidiary: Shanghai Xunmeng Information Technology Co., Ltd. (“Shanghai Xunmeng”) January 9, 2014 PRC — 100 % E-commerce platform 1. Organization (Continued) The VIE agreements The PRC laws and regulations currently place certain restrictions on foreign ownership of companies that engage in internet content and other restricted businesses. To comply with PRC laws and regulations, the Group conducts the majority of its business in China through the VIE and subsidiaries of the VIE. Despite the lack of technical majority ownership, the Company directs the activities of the VIE through a series of contractual arrangements (the “Contractual Agreements’’). The equity interests of the VIE are legally held by PRC individuals (the ‘‘Nominee Shareholders’’). Through the Contractual Agreements, the Nominee Shareholders of the VIE effectively assigned all of their voting rights underlying their equity interests in the VIE to the Company, via the WFOE, and therefore, the Company has the power to direct the activities of the VIE that most significantly impact its economic performance. The Company also has the right to receive economic benefits and obligations to absorb losses from the VIE, via the WFOE, that potentially could be significant to the VIE. Based on the above, the Company consolidates the VIE in accordance with SEC Regulation SX-3A-02 and ASC810-10, Consolidation: Overall The following is a summary of the Contractual Agreements: Exclusive Option Agreements Equity Pledge Agreement 1. Organization (Continued) The VIE agreements (Continued) Shareholders’ Voting Rights Proxy Agreement Exclusive Consulting and Services Agreement In the opinion of the Company’s management and PRC counsel, (i) the ownership structure of the Group, including its subsidiaries, the VIE and the subsidiaries of the VIE, is not in violation with any applicable PRC laws and (ii) each of the VIE agreements is legal, valid, binding and enforceable to each party of such agreements in accordance with its terms and applicable PRC Laws. The Proxy Agreement was assigned by the WFOE to the Company. The Company and the VIE entered into a financial support undertaking letter pursuant to which, the Company is obligated and hereby undertakes to provide unlimited financial support to the VIE, to the extent permissible under the applicable PRC laws and regulations, whether or not any such operational loss is actually incurred. Uncertainties in the PRC legal system could cause the relevant regulatory authorities to find the current Contractual Agreements and businesses to be in violation of any existing or future PRC laws or regulations. If the Company, the WFOE or any of its current or future VIE are found in violation of any existing or future laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, which may include, but not limited to, revocation of business and operating licenses, being required to discontinue or restrict its business operations, restriction of the Group’s right to collect revenues, being required to restructure its operations, imposition of additional conditions or requirements with which the Group may not be able to comply, or other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these or other penalties may result in a material and adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIE or the right to receive their economic benefits, the Company would no longer be able to consolidate the VIE. 1. Organization (Continued) The VIE agreements (Continued) In addition, if the VIE or the Nominee Shareholders fail to perform their obligations under the Contractual Agreements, the Group may have to incur substantial costs and expend resources to enforce the primary beneficiary’ rights under the contracts. The Group may have to rely on legal remedies under PRC laws, including seeking specific performance or injunctive relief and claiming damages, which may not be effective. All of the Contractual Agreements are governed by PRC laws and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC laws and any disputes would be resolved in accordance with PRC legal procedures. Uncertainties in the PRC legal system could limit the Group’s ability to enforce these contractual arrangements. Under PRC laws, rulings by arbitrators are final, parties cannot appeal the arbitration results in courts, and prevailing parties may only enforce the arbitration awards in PRC courts through arbitration award recognition proceedings, which would incur additional expenses and delay. In the event the Group is unable to enforce the Contractual Agreements, the primary beneficiary may not be able to direct the activities of its VIE, and the Group’s ability to conduct its business may be negatively affected. The VIE and its subsidiaries contributed to 65.1%, 59.3% and 56.2% of the Group’s consolidated revenues for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the VIE and its subsidiaries accounted for an aggregate of 48.7% and 53.0%, respectively of the consolidated total assets, and 83.2% and 77.1%, respectively of the consolidated total liabilities. Other revenue-producing assets held by the VIE and its subsidiaries mainly include licenses, such as the internet content provision license and internally-developed intangible assets including trademarks, patents, copyrights and domain names. 1. Organization (Continued) The VIE agreements (Continued) The following tables represent the financial information for the VIE and its subsidiaries as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 before eliminating the inter-company balances and transactions between the VIE, the subsidiaries of the VIE and other entities within the Group: As of December 31, 2021 2022 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,430,440 2,725,249 395,124 Restricted cash 59,402,079 57,955,328 8,402,733 Receivables from online payment platforms 668,953 426,193 61,792 Short-term investments 12,306,340 45,273,907 6,564,099 Amounts due from related parties (i) 4,198,391 6,106,160 885,310 Amounts due from Group companies 40,425,872 34,810,132 5,046,995 Prepayments and other current assets 1,330,772 1,280,559 185,664 Total current assets 120,762,847 148,577,528 21,541,717 Non-current assets Property, equipment and software, net 2,116,566 950,273 137,777 Intangible asset 27,163 24,155 3,502 Right-of-use assets 417,455 426,429 61,826 Deferred tax assets 19,908 14,556 2,110 Other non-current assets 5,300,938 10,444,964 1,514,377 Total non-current assets 7,882,030 11,860,377 1,719,592 Total assets 128,644,877 160,437,905 23,261,309 As of December 31, 2021 2022 RMB RMB US$ LIABILITIES Current liabilities Amounts due to related parties (i) 1,962,029 1,671,246 242,308 Amounts due to Group companies 27,978,153 22,452,033 3,255,239 Customer advances and deferred revenues 1,158,738 1,369,573 198,569 Payable to merchants 61,947,517 62,006,946 8,990,162 Accrued expenses and other liabilities 9,360,166 11,817,208 1,713,334 Merchant deposits 13,360,409 14,681,913 2,128,677 Lease liabilities 138,667 156,776 22,730 Total current liabilities 115,905,679 114,155,695 16,551,019 Lease liabilities 305,068 290,412 42,106 Deferred tax liabilities 19,217 — — Total non-current liabilities 324,285 290,412 42,106 Total liabilities 116,229,964 114,446,107 16,593,125 1. Organization (Continued) The VIE agreements (Continued) For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net revenues from Group companies 12,602,673 22,136,726 30,199,788 4,378,558 External 38,749,188 55,740,613 73,431,914 10,646,626 Net revenues 51,351,861 77,877,339 103,631,702 15,025,184 Net income 2,552,665 15,169,180 33,595,051 4,870,825 (i) Information with respect to related parties is discussed in Note 18. For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net cash generated from operating activities 29,379,799 34,365,025 25,650,939 3,719,037 Net cash used in investing activities (11,802,074) (26,828,581) (43,513,150) (6,308,814) Net cash generated from/(used in) financing activities 7,818,632 (1,445,969) 16,710,269 2,422,761 Net increase/(decrease) in cash, cash equivalents and restricted cash 25,396,357 6,090,475 (1,151,942) (167,016) As of December 31, 2022, there are no consolidated VIE’s assets that are pledged or collateralized for the VIE’s obligations and which can only be used to settle the VIE’s obligations, except for registered capital and the PRC statutory reserves, which were RMB121,000 and RMB5,889, respectively, as of December 31, 2022. Relevant PRC laws and regulations restrict the VIE from transferring a portion of its net assets, equivalent to the balance of their statutory reserves and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 20 for disclosure of the restricted net assets. As the VIE is incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the VIE. There were no other pledges or collateralization of the VIE’s assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the subsidiaries of the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries, the VIE and subsidiaries of the VIE have been eliminated upon consolidation. 2. (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet dates and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to allowance for doubtful accounts arising from expected credit losses, economic lives and impairment of long-lived assets, valuation of short-term and long-term investments, valuation allowance for deferred tax assets, uncertain tax position, valuation for share-based compensation, liability component of convertible bonds and incremental borrowing rates for operating lease liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Foreign currency The functional currency of the Company and its major overseas subsidiaries is the US$. The Company’s PRC subsidiaries, the VIE and subsidiaries of the VIE determined their functional currencies to be RMB based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive income/(loss). The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income/(loss), a component of shareholders’ equity. (e) Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.8972 on December 30, 2022, the last business day in December 2022, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use and have original maturities of three months or less when purchased. (g) Restricted cash Restricted cash mainly represents cash received from consumers and reserved in a bank supervised account for payments to merchants. 2. (h) Investments The Group’s short-term investments and long-term investments included in other non-current assets primarily consist of time deposits, held-to-maturity debt securities, investment in convertible bonds, available-for-sale debt securities and equity-method investments. The classification of an investment is determined based on the Group’s ability and intent to hold the investment, the nature of the investment, and the degree to which the Group may exercise influence over the investee. All highly liquid investments with original maturities of greater than three months but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments. Long-term debt securities with maturities of greater than twelve months, that the Group has positive intent and ability to hold to maturity, which are stated at amortized cost, are classified as other non-current assets. Investments in debt securities that the Group has positive intent and ability to hold to maturity are categorized as “held to maturity”. Wealth management products with the intention to sell in the near term are classified as trading securities and measured at fair value. Any realized gains or losses on the sale of the held-to-maturity debt securities and trading securities are determined on a specific identification method and are reflected in earnings during the period in which gains or losses are realized. Realized and unrealized gains and losses and interest income from the investments are recorded in “Interest and investment income, net” in the consolidated statements of comprehensive income/(loss). The Group has elected the fair value option for investment in convertible bonds in accordance with ASC Subtopic 825-10 (“ASC 825-10”), Recognition and Measurement of Financial Assets and Financial Liabilities The Group accounts for available-for-sale debt securities in accordance with ASC Topic 320, Investments-Debt Securities The Group’s investments in common stock or in-substance common stock in entities in which it can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting and classified as “equity method investments” in accordance with ASC Subtopics 323-10 (“ASC 323-10”), Investments-Equity Method and Joint Ventures: Overall 2. (i) Property, equipment and software, net Property, equipment and software are stated at cost and are depreciated and amortized using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Computer equipment 1-3 years Office equipment 3 years Purchased software 3-5 years Leasehold improvements Over the shorter of lease terms or the estimated useful lives of the assets Repair and maintenance costs are charged to expense as incurred, whereas the costs of renewals and betterments that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income/(loss). (j) Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Group recognizes an impairment loss based on the excess of the carrying amounts of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there were no impairment of any of the Group’s long-lived assets. 2. (k) Fair value of financial instruments The Group’s financial instruments include cash and cash equivalents, restricted cash, receivables from online payment platforms, amounts due from/to related parties, merchant deposits, payables to merchants, short-term investments, long-term time deposits and debt securities and convertible bonds. For the aforementioned financial instruments included in current assets and liabilities, except for ones measured at fair value, their carrying amount approximate to their respective fair values because of the general short maturities. The carrying amounts of time deposits and long-term held-to-maturity debt securities approximate to fair values as the related interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. The fair value of convertible bonds that are not reported at fair value are disclosed in Note 12. The Group applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. ASC 820 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. (l) Revenue recognition Revenues are principally comprised of those generated from online marketplace services and merchandise sales. Revenues from online marketplace services primarily consist of online marketing services revenues and transaction services fees. Revenues represent the amount of consideration that the Company is entitled to in exchange for the transfer of promised goods or services in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). Consistent with the criteria of ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers 2. (l) Revenue recognition (Continued) Online marketing services The Group entered into contractual agreements with certain merchants to provide online marketing services on the Group’s online marketplace for which the Group receives service fees from merchants. The Group provides merchants with performance-based marketing services that match product listings appearing in search or browser results on the Group’s online marketplace. Merchants prepay for online marketing services that are primarily charged on a cost-per-click basis. Under ASC 606, the related revenues are recognized at a point of time when consumers click the merchants’ product listings and the online marketing services are completed by the Group for the merchants. The positioning of such listings and the price for such positioning are determined through an online auction system, which facilitates price discovery through a market-based mechanism. The Group also provides display marketing services that allow the merchants to place advertisements on the platform primarily at fixed prices. In general, the merchants need to prepay for display marketing which is accounted for as customer advances and deferred revenues and revenues are primarily recognized over the period during which the advertising services are provided. Transaction services The Group charges fees expected to receive from transaction services to merchants for sales transactions completed on our platforms, where the Group does not take control of the products provided by merchants at any point in time during the transactions and do not have latitude over pricing of the merchandise. Revenues related to transaction services are recognized in consolidated statements of comprehensive income/(loss) at a point in time when the Group’s service obligations to the merchants are determined to have been completed under each sales transaction upon the confirmation of the receipts of goods by the consumers. Merchandise sales The Group in certain cases acquires the merchandises from suppliers and sells directly to the customers. The Group acts as a principal as it obtains control of the merchandises, is primarily obligated for the merchandise sold to the customers, bears inventory risks and has the latitude in establishing prices. Revenues from merchandise sales are recorded on a gross basis, net of discounts and return allowances when the product is delivered and title is passed to customers in this type of transaction. Proceeds received in advance of customer acceptance are recorded as current liabilities in customer advances and deferred revenues. 2. (l) Revenue recognition (Continued) Incentives provided to the consumers In order to promote its online marketplace and attract more registered consumers, the Group at its own discretion provides various forms of incentives, for example, coupons, credits and other subsidies that are not specific to any merchant, to the consumers who are not customers of the Group. Despite the absence of any explicit contractual obligations to incentivize the consumers on behalf of the merchants, the Group further evaluated the varying features of different incentive programs to determine that whether the incentives represent implicit obligations to the consumers on behalf of merchants and if so, should be recorded as reduction of revenues. Based on that evaluation, the Group determined that incentives provided to the consumers are not considered as payments to the merchant-customers. The Group at its discretion issues to the consumers coupons and credits upon completion of certain actions to promote the Group’s platform. The coupons can be used for future purchases of eligible merchandise offered on the Group’s online marketplace to reduce purchase price and the credits can be used to redeem cash from the Group. The Group recognizes the amounts of coupons and credits as marketing expenses when future purchases are completed or when the credits are issued. Other subsidies unconditionally provided to the consumers are recognized as marketing expenses when the related transaction services revenues from merchants are recognized. Certain subsidies are provided to consumers upon their completion of certain actions to promote the platform, and the Group records the related costs in marketing expenses upon the completion of such promotion tasks. (o) Costs of revenues Costs of revenues consist primarily of payment processing fees paid to third party online payment platforms, costs associated with the operation of the platform and others, such as costs and expenses attributable to merchandise sales, fulfillment fees, merchant support services, bandwidth and server costs, amortization, depreciation and maintenance costs, payroll, employee benefits and share-based compensation expenses, call center, surcharges and other expenses directly attributable to the online marketplace services. (p) Advertising expenditures Advertising expenditures are expensed when incurred and are included in sales and marketing expenses. Total amount of advertising expenditures and incentive programs recognized in sales and marketing expenses were RMB39,297,890, RMB41,456,838 and RMB49,971,418 (US$7,245,175) for the years ended December 31, 2020, 2021 and 2022, respectively. (q) Research and development expenses Research and development expenses include payroll, employee benefits, and other operating expenses associated with research and platform development. Research and development expenses also include rent, depreciation and other related expenses. To date, expenditures incurred between when the application has reached the development stage and when it is substantially complete and ready for its intended use have been inconsequential and, as a result, the Group did not capitalize any software development costs in the accompanying consolidated financial statements. 2. (r) Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such amounts are recognized as “Other income, net” upon receipt and when all conditions attached to the grants are fulfilled. (s) Credit loss The Group adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (t) Leases The Group as the lessee determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Group’s lease portfolio consisted entirely of operating leases as of December 31, 2020, 2021 and 2022. The Group’s leases do not contain any residual value guarantees or material restrictive covenants. The Group also elected the practical expedient of the short-term lease exemption for contracts with lease terms of 12 months or less. At the commencement date of an operating lease, the Group records a right-of-use (“ROU”) asset and lease liability based on the present value of the lease payments over the lease term. Variable lease payments not dependent on an index or rate are excluded from the ROU asset and lease liability calculations and are recognized in expense in the period which the obligation for those payments is incurred. As the rate implicit in the Group’s lease is not typically readily available, the Group uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Group could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise that option. The Group accounts for lease and non-lease components separately. 2. (u) Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740(‘‘ASC 740’’), Income Taxes The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive income/(loss) as income tax expenses. (v) Share-based compensation The Group applies ASC 718 (‘‘ASC 718’’), Compensation—Stock Compensation Compensation-Stock Compensation Improvement to Employee Share-based Payment Accounting (w) Employee benefit expenses As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. (x) Comprehensive income/(loss) Comprehensive income/(loss) is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income 2. (y) Earnings/(Loss) per share Basic earnings/(loss) per share is computed by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income/(loss) is allocated between ordinary shares and other participating securities based on their participating rights. Diluted earnings/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of unvested restricted share unites (‘‘RSUs’’) and shares issuable upon the exercise of share options using the treasury stock method, and conversion of convertible bonds using the if-converted method. Ordinary equivalent shares are not included in the denominator of the diluted earnings/(loss) per share calculation when inclusion of such shares would be anti-dilutive. Basic and diluted earnings/(loss) per share are not reported separately for Class A ordinary shares or Class B ordinary shares (the ‘‘Ordinary Shares’’) as each class of shares has the same rights to undistributed and distributed earnings. (z) Segment reporting The Group follows ASC 280, Segment Reporting (aa) Recent accounting pronouncements The Group does not expect the adoption of any recently issued accounting pronouncements to have a material impact on the financial statements. |
Concentration of Risks
Concentration of Risks | 12 Months Ended |
Dec. 31, 2022 | |
Concentration of Risks | |
Concentration of Risks | 3. (a) Concentration of credit risk Financial instruments that may potentially subject the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, receivables from online payment platforms, amounts due from related parties, short-term investments, and long-term debt investments. As of December 31, 2021 and 2022, a majority of the Group’s cash and cash equivalents, restricted cash, short-term investments and long-term debt investments were held at reputable financial institutions with high-credit ratings. In the event of bankruptcy of one of these financial institutions, the Group may not be able to claim its cash and demand deposits back in full. The Group continues to monitor the financial strength of the financial institutions. There has been no recent history of default in relation to these financial institutions. Receivables from online payment platforms and amounts due from related parties (Note 18), unsecured and denominated in RMB and US$, derived from transactions on the Group’s online marketplace to consumers, are exposed to credit risk. The risk is mitigated by credit evaluations the Group performs on the selected online payment platforms that are highly reputable and market leaders. There has been no default of payments from these online payment platforms. (b) Business, customer, political, social and economic risks The Group participates in a dynamic and competitive high technology industry and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations or cash flows: changes in the overall demand for services; changes in competitive landscape including potential new entrants; advances and new trends in new technology; strategic relationships or customer relationships; regulatory considerations; and risks associated with the Group’s ability to attract and retain employees necessary to support its growth. (i) (ii) (iii) 3. (c) Foreign currency exchange rate risk The Group is exposed to foreign currency exchange rate risk, which mainly affects the monetary assets denominated in the currencies other than the functional currencies of the respective entities. From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. The (depreciation)/appreciation of the US$ against RMB was approximately (6.5)%, (2.3)% and 9.2% for the years ended December 31, 2020, 2021 and 2022, respectively. The functional currency and the reporting currency of the Company are the US$ and the RMB, respectively. Most of the Group’s revenues and costs are denominated in RMB, while a portion of cash and cash equivalents, short-term investments and long-term debt investments, are denominated in US$. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future. (d) Currency convertibility risk The Group transacts most of its business in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. |
Short-term Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2022 | |
Short-term Investments | |
Short-term Investments | 4 . Short-term investments classification as of December 31, 2021 and 2022 were shown as below: As of December 31, 2021 2022 2022 RMB RMB US$ Time deposits and held-to-maturity debt securities 86,203,296 113,872,353 16,509,939 Trading securities 313,322 6,917 1,003 Investments in convertible bonds — 1,233,284 178,809 86,516,618 115,112,554 16,689,751 The gross unrecognized holding gains or loss on the held-to-maturity debt securities was nil as of December 31, 2021 and 2022. The cost of trading securities was RMB300,000 and RMB6,828 (US$990), with net unrealized gain of RMB13,322 and RMB89 (US$13) as of December 31, 2021 and 2022, respectively. For the years ended December 31, 2020, 2021 and 2022, interest income related to time deposits and held-to-maturity debt securities was RMB1,175,842, RMB1,093,654 and RMB2,442,413 (US$354,117), respectively. The Group invested in convertible bonds issued by a third party in 2020, which is accounted for under the fair value option and reclassified from other non-current assets (Note 9) to short-term investments during the year ended December 31,2022. As of December 31, 2021 and 2022, the fair value was RMB1,290,901 and RMB1,233,284 (US$178,809), respectively. Unrealized gains recorded on these convertible bonds in the consolidated statements of comprehensive income/(loss) was RMB88,928 for the year ended December 31, 2020, while unrealized loss of RMB67,065 and RMB221,640 (US$32,135) were recorded for the year ended December 31, 2021 and 2022, respectively. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 5 . The components of prepayments and other current assets are as follows: As of December 31, 2021 2022 2022 RMB RMB US$ Prepayments 1,392,929 966,439 140,120 VAT recoverable 670,541 326,427 47,328 Interest receivables 364,594 119,564 17,335 Rental and other deposits 111,139 86,915 12,602 Others 885,484 799,034 115,850 3,424,687 2,298,379 333,235 The prepayments mainly consist of advertising fees paid in advance. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Equipment and Software, Net | |
Property, Equipment and Software, Net | 6. As of December 31, 2021 2022 2022 RMB RMB US$ At cost: Computer equipment, office equipment and purchased software 3,135,385 3,591,861 520,771 Leasehold improvement 28,773 30,249 4,386 3,164,158 3,622,110 525,157 Less: accumulated depreciation (960,835) (2,577,263) (373,668) 2,203,323 1,044,847 151,489 For the years ended December 31, 2020, 2021 and 2022, the Group recorded depreciation expenses amounted RMB27,999, RMB911,964 and RMB1,615,551 (US$234,233), respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
Intangible Assets | 7. Intangible assets consisted of the following: As of December 31, 2021 2022 2022 RMB RMB US$ Balance as of January 1 1,276,751 701,220 101,667 Addition 30,073 — — Amortization (583,416) (608,618) (88,241) Foreign currency translation difference (22,188) 41,400 6,002 Balance as of December 31 701,220 134,002 19,428 In February 2018, the Company entered into a strategic cooperation framework agreement (the “Agreement”) with an affiliate of Tencent Group. The Company and Tencent Group agreed to cooperate in a number of areas primarily for Tencent Group to provide the Company with Weixin access point and other services and to pursue additional opportunities for future potential cooperation. The Agreement is valid for five years, from March 1, 2018 to February 28, 2023. The Company recognized the Agreement as an intangible asset at the fair value of consideration paid in the form of convertible preferred shares of RMB2,852 million. The Group recognizes the related amortization expense in costs of revenues, over the period of five years using the straight-line method. Amortization expense for intangible assets were RMB623,524, RMB583,416 and RMB608,618 (US$88,241) for the years ended December 31, 2020, 2021 and 2022, respectively. No impairment charge was recognized on the intangible assets for any of the three years in the period ended December 31, 2022. 7. The estimated annual amortization expense for each of the remaining fiscal years is as follows: Amortization RMB US$ 2023 112,854 16,362 2024 3,007 436 2025 3,007 436 2026 3,007 436 2027 and after 12,127 1,758 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 8. The Group has operating leases mainly for offices and warehouses in China. For the years ended December 31, 2020, 2021 and 2022, operating lease costs were RMB177,976, RMB385,377 and RMB557,477 (US$80,827), respectively; and short-term lease costs were RMB31,394, RMB141,507 and RMB174,402 (US$25,286), respectively. There were no leasing costs other than the operating lease costs and short-term lease costs for the years ended December 31, 2020, 2021 and 2022. A maturity analysis of the Company’s operating lease liabilities and reconciliation of the undiscounted cash flows to the operating lease liabilities recognized on the consolidated balance sheet was as below: As of December 31, 2022 RMB US$ 2023 650,617 94,331 2024 497,166 72,082 2025 274,728 39,832 2026 67,483 9,784 2027 and after 75,197 10,903 Total undiscounted cash flows 1,565,191 226,932 Less: imputed interest (92,373) (13,393) Present value of lease liabilities 1,472,818 213,539 As of December 31, 2022, the Company had no operating leases that had not yet commenced. As of December 31, 2020, 2021 and 2022, the weighted average remaining lease term was 3.39 years, 2.74 years and 2.87 years, respectively, and the weighted average discount rate was 4.90%, 4.38% and 4.05% for the Company’s operating leases, respectively. Other supplemental information related to leases is summarized below: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Cash payments for operating leases 166,967 388,144 534,784 77,536 ROU assets obtained in exchange for new operating lease liabilities 265,821 704,142 1,068,063 154,855 |
Other Non-Current Asset
Other Non-Current Asset | 12 Months Ended |
Dec. 31, 2022 | |
Other Non-current Assets | |
Other Non-current Assets | 9. Other non-current assets mainly include time deposits, held-to-maturity debt securities, available-for-sale debt securities, investment in convertible bonds, and equity method investments. Time deposits and held-to-maturity debt securities represent the time deposits made in financial institutions and other held-to-maturity debt securities that the Group has positive intent and ability to hold to maturity. As of December 31, 2021 and 2022, the carrying amount for the investments, net of allowance for credit losses, was RMB13,008,899 and RMB11,040,283 (US$1,600,691), respectively. As of December 31, 2021 and 2022, the allowance for credit losses was RMB14,378 and RMB12,873 (US$1,866), respectively. The gross unrecognized holding gains or loss on the investments was nil as of December 31, 2021 and 2022. Interest income recorded on these time deposits in the consolidated statements of comprehensive income/(loss) were RMB66,602, RMB83,728 and RMB151,299 (US$21,936) for the years ended December 31, 2020, 2021 and 2022, respectively. The following table summarizes the net carrying amount of long-term time deposits and held-to-maturity debt securities with stated contractual dates, classified by the contractual maturity date of the investments: As of December 31, 2021 2022 2022 RMB RMB US$ Due in 1 year through 2 years 8,936,424 5,536,768 802,756 Due in 2 years through 3 years 4,072,475 5,503,515 797,935 13,008,899 11,040,283 1,600,691 As of December 31, 2022, available-for-sale debt securities include government bonds purchased from financial institutions, with maturities of greater than twelve months. The following table summarizes the details of available-for-sale debt securities with stated contractual dates, classified by the contractual maturity date of the investments: Fair Value Gross Gross Fair Value (Net Amortized Unrealized Unrealized (Net Carrying Carrying Cost Gains Losses Amount) Amount) RMB RMB RMB RMB US$ Due in 5 years through 10 years 3,596,846 4,626 (25,998) 3,575,474 518,395 The Group does not consider the investments in available-for-sale debt securities to be other-than-temporarily impaired at December 31, 2022. Hence, no allowance for credit loss was recorded as of December 31, 2022. As of December 31, 2021, investment in convertible bonds measured at fair value amounted to RMB1,290,901, which is reclassified to short-term investments for the year ended December 31, 2022 (Note 4). Equity method investments consist of the Group’s investments as a limited partner in certain limited partnership funds, including funds set up by the Company’s related parties, to make strategic investments. As of December 31, 2021 and 2022, the carrying amount for the investments was RMB1,968,156 and RMB2,049,616 (US$297,166), respectively. No equity method investments were considered, individually or in aggregate, material as of December 31, 2021 and 2022. There was no impairment on these investments during the years ended December 31, 2020, 2021 and 2022. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities | |
Accrued Expenses and Other Liabilities | 10. The components of accrued expenses and other liabilities are as follows: As of December 31, 2021 2022 2022 RMB RMB US$ Accrued advertising and marketing expenses 3,652,648 5,850,125 848,188 VAT and other tax payable 5,734,281 6,970,790 1,010,670 Payroll payable 1,949,173 2,364,723 342,853 Accounts payable 1,951,681 3,978,818 576,874 Others 797,730 1,796,267 260,434 14,085,513 20,960,723 3,039,019 |
Convertible Bonds
Convertible Bonds | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Bonds | |
Convertible Bonds | 11. (a) 2024 Convertible Bonds In September 2019, the Company issued US$1,000,000 principal amount 0.00% convertible senior notes including US$125,000 sold upon the exercise of the over-allotment option (the “2024 Notes”). The 2024 Notes will mature on October 1, 2024 unless redeemed, repurchased or converted prior to such date. Holders may convert their 2024 Notes at their option prior to the close of business on the business day immediately preceding April 1, 2024 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2019 (and only during such calendar quarter), if the last reported sale price of the Company’s American Depositary Shares (the “ADSs”), each representing four Class A ordinary shares of the Company, par value US$0.000005 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day (the “2024 Price Condition”); (2) during the five-business-day-period after any ten-consecutive-trading-day-period (the “measurement period”) in which the trading price per US$1,000 principal amount of the 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the ADSs and the conversion rate on each such trading day; (3) if the Company calls the 2024 Notes for a tax redemption; (4) if the Company calls the 2024 Notes for redemption at its option or (5) upon the occurrence of specified corporate events. On or after April 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2024 Notes at any time. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. The initial conversion rate of the 2024 Notes is 23.4680 of the Company’s ADS per US$1,000 principal amount of the 2024 Notes (which is equivalent to an initial conversion price of approximately US$42.61 per ADS). The conversion rate will be subject to adjustment in some events. In addition, following certain corporate events that occur prior to the maturity date, if a make-whole fundamental change occurs prior to the maturity date of the 2024 Notes, or under certain circumstances upon a tax redemption or the Company’s optional redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2024 Notes in connection with such corporate event, such make-whole fundamental change or such notice of tax redemption or notice of optional redemption, as the case may be. The Company may not redeem the 2024 Notes prior to October 1, 2022 unless certain tax-related events occur. On or after October 1, 2022, the Company may redeem for cash all or part of the 2024 Notes, at its option, if the last reported sale price of the Company’s American Depositary Shares has been at least 130% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately prior to the date the Company provides notice of redemption; and (ii) the trading day immediately preceding the date the Company sends such notice. Holders of the 2024 Notes may require the Company to repurchase all or part of their 2024 Notes in cash on October 1, 2022 (the “Repurchase Date”) or in the event of certain fundamental changes. No sinking fund is provided for the 2024 Notes. 11. (b) 2025 Convertible Bonds In November 2020, the Company issued US$2,000,000 principal amount 0.00% convertible senior notes including US$250,000 sold upon the exercise of the over-allotment option (the “2025 Notes”). The Notes will mature on December 1, 2025 unless redeemed, repurchased or converted prior to such date. Holders may convert their 2025 Notes at their option prior to the close of business on the business day immediately preceding June 1, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2021 (and only during such calendar quarter), if the last reported sale price of the Company’s ADS, par value US$0.000005 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five-business-day period after any ten-consecutive-trading-day period (the ‘‘measurement period’’) in which the ‘‘trading price’’ (as defined below) per US$1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the ADSs and the conversion rate on each such trading day; (3) if the Company calls the 2025 Notes for a tax redemption; (4) if the Company calls the 2024 Notes for redemption at its option or (5) upon the occurrence of specified corporate events. On or after June 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2025 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. The conversion rate will initially be 5.2459 ADSs per US$1,000 principal amount of 2025 Notes (equivalent to an initial conversion price of approximately US$190.63 per ADS). The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid special interest, if any. In addition, following certain corporate events that occur prior to the maturity date or following the Company’s delivery of a notice of a tax or optional redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2025 Notes in connection with such a corporate event or such notice of tax or optional redemption, as the case may be. The Company may not redeem the 2025 Notes prior to December 6, 2023 unless certain tax-related events occur. On or after December 6, 2023, the Company may redeem for cash all or part of the 2025 Notes, at its option, if the last reported sale price of its ADSs has been at least 130% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately prior to the date the Company provide notice of redemption and (ii) the trading day immediately preceding the date the Company send such notice. Holders of the 2025 Notes may require the Company to repurchase all or part of their 2025 Notes in cash on December 1, 2023 (the “Repurchase Date”) or in the event of certain fundamental changes. No sinking fund is provided for the 2025 Notes. (c) Accounting for Convertible Bonds The Group adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity 11. (c) Accounting for Convertible Bonds (Continued) The cumulative effects of changes made to the Group’s consolidated balance sheet on January 1, 2022 for the adoption of ASU 2020-06 were as follows: Balance at Balance at December January 31, 2021 Adjustment 1, 2022 RMB RMB RMB Liabilities Convertible bonds 11,788,907 2,316,324 14,105,231 Equity Additional paid-in capital 95,340,819 (3,818,926) 91,521,893 Accumulated other comprehensive loss (2,519,900) 136,096 (2,383,804) Accumulated deficits (17,706,533) 1,366,506 (16,340,027) The adoption of ASU 2020-06 reduced interest expense by RMB1,268,792 (US$183,958) in 2022, and increased the basic and diluted earnings per share by RMB0.25 (US$0.04) and RMB0.17 (US$0.02), respectively. Those convertible bonds were anti-dilutive before adoption of ASU 2020-06. Prior to the adoption of ASU 2020-06, as the conversion option may be settled in cash, ADSs, or a combination of cash and ADSs at the Company’s option, the Company separated the 2024 Notes and the 2025 Notes (collectively as the “Notes”) into liability and equity components in accordance with ASC 470-20, Debt with Conversion and Other Options After the adoption of ASU 2020-06, the Group recombine convertible bonds that were previously separated into liability and equity components in accordance with ASC 470-20. The revised amortized cost of the outstanding convertible bonds at transition is recomputed as if the conversion option was not separated. The Group determined the amortized cost at issuance date and then recalculate the amortization of the discount using the recalculated effective interest rate. The resulting discount, together with the issuance costs as mentioned below, are accreted at an effective interest rate over the period from the issuance date to the Repurchase Date. The recalculated effective rate of the 2024 Notes and 2025 Notes are 0.53% and 0.34%, respectively. The adjustment to retained earnings is the difference between the sum of the carrying amount of the liability and equity component immediately before transition and the revised amortized cost. The gross proceeds from the issuance of the 2024 Notes and 2025 Notes were US$1,000,000 and US$2,000,000, respectively, and debt issuance costs including under writing commissions and offering expenses were approximately US$15,680 and US$20,607, respectively. As of December 31, 2021 and 2022, the principal amount of the Notes were US$2,226,253 and US$2,226,252, unamortized debt discount were US$377,216 and US$6,239, and net carrying amount of the Notes were RMB11,788,907 and RMB15,461,506, respectively. 11. (c) Accounting for Convertible Bonds (Continued) For the year ended December 31, 2021 and 2022, the amount of interest cost recognized relating to the amortization of the discount on the Notes were RMB1,221,846 and RMB51,655 (US$7,489), respectively. As of December 31, 2022, the net carry amount of 2025 Notes will be accreted up to the principal amount over a remaining period of 0.92 year. The amount repayable within the next twelve months are classified as “Convertible notes, current portion” on the consolidated balance sheets. For the year ended December 31, 2021, holders of US$656,771 in aggregate principal amount of the 2024 Notes exercised their right to convert their notes into shares under the 2024 Price Condition at its initial conversion price. As a result, the Company issued 62,732,708 ordinary shares. As of December 31, 2022, the if-converted values of remaining 2024 Notes were US$431,757, which exceed their principal amount of US$226,252. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Fair Value Measurements | 12. In accordance with ASC 820, the Company measures investment in convertible bonds and certain wealth management products classified as trading securities on a recurring basis. The following tables set forth the financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy: Fair Value Measurements Quoted Price in Significant Active Market Other Unobservable for Identical Observable Inputs Assets (Level 1) Inputs (Level 2) (Level 3) RMB RMB RMB Recurring As of December 31, 2021: Short-term investments: Trading securities — 313,322 — Other non-current assets: Investments in convertible bonds — — 1,290,901 — 313,322 1,290,901 Fair Value Measurements Quoted Price in Significant Active Market Other Unobservable for Identical Observable Inputs Assets (Level 1) Inputs (Level 2) (Level 3) RMB RMB RMB Recurring As of December 31, 2022: Cash equivalents Money market funds 7,791,628 — — Short-term investments: Trading securities 6,917 — — Investments in convertible bonds — — 1,233,284 Other non-current assets: Available-for-sale debt securities — 3,575,474 — 7,798,545 3,575,474 1,233,284 12. Investment in convertible notes is classified under level 3 in the fair value hierarchy, with the fair value estimated based on the third-party appraisal report using the discounted cashflow model and the binomial model. Key inputs and parameters include volatility which is an expected rate based on the historical stock price of the bond issuer, risk free rate which is based on the yield of US government bond and discount rate which is based on yield of comparable bonds with similar credit rating applicable for the bond issuer. Certain trading securities and available-for-sale debt securities are classified under level 2 in the fair value hierarchy, with the fair value determined based on quoted prices of similar assets. The Group values its money market funds and certain trading securities using quoted prices for the underlying securities in active markets, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 1. Reconciliations of assets categorized within Level 3 under the fair value hierarchy are as follow: Amounts RMB Balance at December 31, 2020 1,388,916 Net unrealized fair value (67,065) Foreign currency translation adjustments (30,950) Balance at December 31, 2021 1,290,901 Net unrealized fair value (221,640) Foreign currency translation adjustments 164,023 Balance at December 31, 2022 1,233,284 As of December 31, 2021 and 2022, the Group did not have any assets or liabilities that were measured at fair value on a non-recurring basis and no impairment charge was recorded. The followings are financial instruments not measured at fair value in the consolidated balance sheets, but for which the fair value is estimated for disclosure purposes. The fair values of time deposits and held-to-maturity debt investments are estimated using prevailing interest rates. The fair values of the convertible bonds are based on broker quotes: Fair Value disclosure Quoted Price in Significant Active Market Other Unobservable for Identical Observable Inputs Assets (Level 1) Inputs (Level 2) (Level 3) RMB RMB RMB As of December 31, 2021: Short-term investments: Time deposits and held-to-maturity debt securities — 86,203,296 — Other non-current assets: Time deposits and held-to-maturity debt securities — 13,008,899 — Convertible bonds — 13,690,953 — As of December 31, 2022: Short-term investments: Time deposits and held-to-maturity debt securities — 113,872,353 — Convertible bonds, current portion — 13,093,448 — Other non-current assets: Time deposits and held-to-maturity debt securities — 11,040,283 — Convertible bonds — 3,056,964 — |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary Shares | |
Ordinary Shares | 13. Holders of Class A ordinary shares and Class B ordinary shares are entitled to the same rights except for voting rights. In respect of matters requiring a shareholder’s vote, each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to ten votes. There were no outstanding Class B ordinary shares as of December 31, 2021 and 2022. In the third quarter of 2018, the Company completed its Initial Public Offering (“IPO”) on the National Association of Securities Deal Automated Quotations under the symbol of “PDD”. In February 2019, the Company completed a follow-on public offering and issued 48,435,000 ADSs, representing 193,740,000 Class A ordinary shares for total proceeds net of issuance costs of US$1,181,209. In April 2020, the Company completed a private placement and issued 135,426,300 Class A Ordinary Shares for total proceeds of US$1,100,000. In June 2020, 664,703,620 Class B ordinary shares were converted into Class A ordinary shares by the holder on a one-for-one basis. In November 2020, the Company completed a follow-on public offering and issued 33,005,000 ADSs, representing 132,020,000 Class A ordinary shares for total proceeds net of issuance costs of US$4,074,642. In December 2020, the Company completed a private placement and issued 15,384,612 Class A Ordinary Shares for total proceeds of US$500,000. In March 2021, 1,409,744,080 Class B ordinary shares were converted into Class A ordinary shares by the holder on a one-for-one basis. |
Accumulated other comprehensive
Accumulated other comprehensive (loss)/income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated other comprehensive (loss)/income | |
Accumulated other comprehensive (loss)/income | 14. Accumulated other comprehensive (loss)/income Net change in unrealized losses on Foreign currency available-for- translation sale debt difference securities Total RMB RMB RMB Balances as of January 1, 2020 1,448,230 — 1,448,230 Other comprehensive loss (2,495,958) — (2,495,958) Balances as of December 31, 2020 (1,047,728) — (1,047,728) Other comprehensive loss (1,472,172) — (1,472,172) Balances as of December 31, 2021 (2,519,900) — (2,519,900) Cumulative effect of accounting change 136,096 — 136,096 Balances as of January 1, 2022 (2,383,804) — (2,383,804) Other comprehensive income/(loss) 5,724,208 (18,166) 5,842,138 Balances as of December 31, 2022 3,340,404 (18,166) 3,322,238 Balances as of December 31, 2022 (US$) 484,313 (2,634) 481,679 The income tax effects related to the accumulated other comprehensive (loss)/income were insignificant for all periods presented. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | |
Revenues | 15. Revenues For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Online marketing services and others 47,953,779 72,563,402 102,721,924 14,893,279 Transaction services 5,787,415 14,140,449 27,626,494 4,005,465 Merchandise sales 5,750,671 7,246,088 209,171 30,327 59,491,865 93,949,939 130,557,589 18,929,071 Contract balances The Group’s contract liabilities comprised of customer advances and deferred revenues and portions of payable to merchants: As of December 31, 2021 December 31, 2022 December 31, 2022 RMB RMB US$ Customer advances and deferred revenues 1,166,764 1,389,655 201,481 Payable to merchants 319,329 637,240 92,391 Customer advances and deferred revenues and payable to merchants relate to considerations received in advance for online marketplace services and merchandise sales, for which control of the services occur at a later point in time. During the year ended December 31, 2022, revenues of RMB1,356,566 (US$196,684) were recognized from the carrying value of contract liabilities as of December 31, 2021. During the year ended December 31, 2021, revenues of RMB2,487,806 were recognized from the carrying value of contract liabilities as of December 31, 2020. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation | |
Share-Based Compensation | 16. In order to provide additional incentives to employees and to promote the success of the Group’s business, the Group adopted a share incentive plan in 2015 (the ‘‘2015 Plan’’). The 2015 Plan allows the Group to grant options to employees, directors or consultants. Under the 2015 Plan, the maximum aggregate number of shares that may be issued shall not exceed 581,972,860. The terms of the options shall not exceed twenty years from the date of grant. In July 2018, the Group adopted the 2018 Share Incentive Plan (the “2018 Plan”). The 2018 Plan allows the Group to grant options and RSUs to employees, directors or consultants. Under the 2018 Plan, the maximum aggregate number of shares that may be issued pursuant to all awards is initially 363,130,400, plus an annual increase on the first day of each fiscal year of the company during the term of the 2018 Plan commencing with the fiscal year beginning January 1, 2019, by an amount equal to the lessor of (i) 1.0% of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year, and (ii) such number of shares as may be determined by our board of directors. In March 2021, our board of directors approved an amendment to the 2018 Plan to increase the annual increase percentage from 1.0% to 3.0% effective from the fiscal year beginning January 1, 2022. For the share options granted under the 2015 Plan and the 2018 Plan, in addition to the explicit service periods of four years, with 25% of the options vesting annually, Class A ordinary shares acquired from the exercise of vested options cannot be sold or transferred by the employees without the prior written consents of the Company within the first three years of vested (‘‘Restricted Shares’’). In the event that employment relationship is terminated with the Company, voluntarily or involuntarily, within the three-year lock-up periods, the Company may, at its sole discretion, repurchase the Restricted Shares at the employee’s exercise price. The Group determined the substance of the lock up periods to be additional implicit service periods of three years, thereby extending the vesting terms of the options to be seven years in total. The RSUs granted under the 2018 Plan vest over a period of four years with 25% vesting on each anniversary from the date of grant, or with 50% of the RSUs vesting on the second anniversary and 25% on each of the third and fourth anniversary from the date of grant. 16. (a) Share options: The following table summarize the Group’s option activities under the 2015 Plan and the 2018 Plan: Weighted Weighted Weighted average average average Aggregate remaining Number of exercise grant date intrinsic contractual share options price fair value value term US$ US$ US$ Years Outstanding as of December 31, 2021 720,003,536 0.0065 4.0216 10,489,372 6.07 Granted 23,652,900 0.0065 13.4311 Forfeited (6,342,000) 0.0065 8.7834 Exercised (225,682,548) 0.0065 2.1461 Outstanding as of December 31, 2022 511,631,888 0.0065 5.2248 10,427,570 15.44 Vested and expected to vest as of December 31, 2022 511,631,888 0.0065 5.2248 10,427,570 15.44 Exercisable as of December 31, 2022 442,371,733 0.0065 3.5480 9,015,978 15.03 The aggregate intrinsic value in the table above is calculated as the difference between the exercise price of the awards and the fair value of the underlying Ordinary Shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant Ordinary Shares. Total intrinsic value of options exercised for the years ended December 31, 2020, 2021 and 2022 was nil, RMB1,252,115 and RMB32,530,282 (US$4,716,448), respectively. The total fair value of vested options for the years ended December 31, 2020, 2021 and 2022 was RMB3,237,924, RMB3,949,471, and RMB4,770,523 (US$691,661), respectively. The weighted average grant date fair value of options granted during the years ended December 31, 2020, 2021 and 2022 was US$14.5801, US$32.0457 and US$13.4311, respectively. As of December 31, 2022, total unrecognized share-based compensation expense relating to unvested awards was RMB8,579,593 (US$1,243,924) which is expected to be recognized over a weighted-average period of 2.44 years. The Group calculated the estimated fair value of the options on the respective grant dates using the binomial-lattice option valuation model with the following assumptions for each applicable period which took into account variables such as volatility, dividend yield, and risk-free interest rates: For the years ended December 31, 2020 2021 2022 Risk-free interest rates 0.62%-1.13% 1.31%-1.69% 1.52%-4.08% Expected volatility 43.89%-46.68% 46.28%-46.87% 46.29%-50.26% Expected dividend yield 0% 0% 0% Exercise multiple 2.80 2.80 2.80 Post-vesting forfeit rate 0% 0% 0% Fair value of underlying ordinary shares $8.9450-$34.1350 $22.0375-$46.5375 $10.6625-$17.8550 Fair value of share option $8.9385-$34.1285 $22.0310-$46.5310 $10.6560-$17.8485 16. (b) RSUs: The following table summarize the Group’s RSU activities under the 2018 Plan: Weighted Number of average grant RSUs date fair value US$ Outstanding as of December 31, 2021 41,518,464 19.0563 Granted 59,628,020 13.0177 Vested (15,453,196) 14.7922 Forfeited (3,708,800) 18.1311 Outstanding as of December 31, 2022 81,984,488 15.5100 The total fair value of the RSUs vested during the years ended December 31, 2020, 2021 and 2022 was RMB178,855, RMB675,837, and RMB1,539,004 (US$223,135), respectively. The weighted average grant date fair value of the RSUs granted during the years ended December 31, 2020, 2021, and 2022 was US$16.6133, US$32.4843 and US$13.0177, respectively. As of December 31, 2022, RMB4,459,730 (US$646,600) of unrecognized share-based compensation expenses related to RSUs is expected to be recognized over a weighted average vesting period of 2.78 years using the accelerated method. Total unrecognized share-based compensation expenses may be adjusted for future changes when actual forfeitures incurred. (c) Share-based compensation expense by function: The Group recognized share-based compensation expenses for the years ended December 31, 2020, 2021 and 2022 as follows: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Costs of revenues 32,291 26,624 33,788 4,899 Sales and marketing expenses 1,093,547 1,612,219 2,158,676 312,979 General and administrative expenses 966,985 792,421 3,004,327 435,586 Research and development expenses 1,520,220 2,343,466 2,521,574 365,594 3,613,043 4,774,730 7,718,365 1,119,058 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | 17. Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain arising in Cayman Islands. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Walnut HK is incorporated in Hong Kong and is subject to Hong Kong profits tax at the rate of 16.5% on its activities conducted in Hong Kong and it may be exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. 17. PRC The Company’s subsidiaries and VIE and its subsidiaries in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the “EIT Law”), which was effective since January 1, 2008, except for certain entities eligible for preferential tax rates. Shanghai Xunmeng, a subsidiary of VIE, was recognized as high and new technology enterprise (“HNTE”) and was eligible for a preferential tax rate of 15% from 2018 to 2023. Walnut Shanghai, a subsidiary of the Company, was recognized as HNTE and was eligible for a preferential tax rate of 15% from 2021 to 2023. Xinzhijiang, a subsidiary of the Company established in April 2018, located in Qianhai District, Shenzhen, Guangdong Province, was eligible for a preferential tax rate of 15% and started to apply this rate from then on. The preferential tax rate is awarded to companies that are located in Qianhai District which operate in certain encouraged industries, from 2014 to 2025. Dividends, interests, rent or royalties payable by the Company’s PRC subsidiaries, to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax. The Group’s (loss)/profit before income taxes consisted of: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Non-PRC (3,763,962) (5,633,012) (7,839,712) (1,136,651) PRC (3,415,780) 15,335,267 44,103,441 6,394,397 (7,179,742) 9,702,255 36,263,729 5,257,746 The Group’s income taxes consisted of: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Current income tax — 1,933,798 5,754,253 834,288 Deferred income tax benefit — (213) (1,028,586) (149,131) — 1,933,585 4,725,667 685,157 17. Income Taxes (Continued) PRC (Continued) The reconciliations of the income tax expenses for the years ended December 31, 2020, 2021 and 2022 were as follows: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ (Loss)/profit before income tax expense (7,179,742) 9,702,255 36,263,729 5,257,746 PRC statutory tax rate 25 % 25 % 25 % 25 % Income tax (benefits)/expense at PRC statutory tax rate (1,794,935) 2,425,564 9,065,932 1,314,437 International tax rate differential 1,077,383 1,522,480 2,013,305 291,902 Preferential tax rate differential 57,483 (1,439,100) (4,442,822) (644,149) Non-deductible expenses 108 167,098 361,045 52,346 Non-taxable income (164,120) (139,417) (122,067) (17,698) Deferred tax items tax rate differential (110,821) 51,493 527,035 76,413 Additional deduction of research and development expenses (124,858) (223,591) (444,071) (64,384) Change in valuation allowance 1,059,760 (430,942) (2,232,690) (323,710) Income tax expenses — 1,933,585 4,725,667 685,157 The significant components of the Group’s deferred tax balances were as follows: As of December 31, 2021 2022 2022 RMB RMB US$ Deferred tax assets Tax losses carried forward 1,432,514 1,472,388 213,476 Carryforwards of non-deductible advertising expenses and donations 1,331,067 79,608 11,542 Others 31,926 58,994 8,553 Less: valuation allowance (2,764,003) (531,313) (77,033) Total deferred tax assets 31,504 1,079,677 156,538 Total deferred tax liabilities (31,291) (47,672) (6,911) In assessing the ability to realize the deferred tax assets, the Group has considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Group evaluates the potential realization of deferred tax assets on an entity-by-entity basis. As of December 31, 2021 and 2022, management recorded full valuation allowance against deferred tax assets in entities that were in a cumulative loss with no forecast profits in the foreseeable future. As of December 31, 2021 and 2022, the Group had taxable losses of RMB5,881,960 and RMB5,744,189 (US$832,829) derived from entities in the PRC, which can be carried forward for five years to offset future taxable profit, and the period was extended to ten years for entities qualified as HNTEs in 2022 and thereafter. The PRC taxable loss will expire from December 31, 2023 to 2031 if not utilized. The tax losses in Hong Kong can be carried forward with no expiration date. The Group plans to indefinitely reinvest the undistributed earnings of its subsidiaries, the VIE and the subsidiaries of the VIE located in the PRC. As of December 31, 2021 and 2022, all of the earnings distributable by our subsidiaries in China were reserved for permanent reinvestment in China, and no withholding tax has been accrued. 17. PRC (Continued) As of December 31, 2021 and 2022, the Group did not have significant unrecognized tax benefit, all of which were presented on a net basis against the deferred tax assets related to tax loss carry forwards on the consolidated balance sheets. It is possible that the amount of unrecognized benefit will further change in the next 12 months; however, an estimate of the range of the possible change cannot be made at this moment. For the years ended December 31, 2020, 2021 and 2022, no interest expense was accrued in relation to the unrecognized tax benefit. As of December 31, 2021 and 2022, there were no accumulated interest expenses recorded in unrecognized tax benefit. As of December 31, 2022, the tax years ended December 31, 2017 through period ended as of the reporting dates for the WFOE, the VIE and the subsidiaries of the VIE remain open to examination by the PRC tax authorities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | 18. (a) Related parties Names of related parties Relationship with the Group Tencent and its affiliates (“Tencent Group”) A shareholder of the Company Ningbo Hexin Equity Investment Partnership Company controlled by one of the executive officers of the Company Shanghai Fufeitong Information Service Co., Ltd. and its affiliates (“Fufeitong Group”) Company controlled by one of the executive officers of the Company (b) Other than disclosed elsewhere, the Group had the following significant related party transactions for the years ended December 31, 2020, 2021 and 2022, respectively: For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Services provided to: Fufeitong Group — — 10,765 1,561 Services received from: Tencent Group 10,541,479 8,416,635 7,061,132 1,023,769 Fufeitong Group 45,364 211,414 653,972 94,817 In 2021, the Group purchased a batch of computer equipment from Tencent Group with a total amount of RMB1,833,495. 18. (c) The Group had the following significant related party balances as of December 31, 2021 and 2022: As of December 31, 2021 2022 2022 RMB RMB US$ Amounts due from related parties: Current: Tencent Group* 2,803,265 2,763,924 400,731 Ningbo Hexin Equity Investment Partnership ** 697,632 697,632 101,147 Fufeitong Group*** 748,875 2,856,856 414,205 Amounts due to related parties: Current: Tencent Group 1,916,482 1,539,694 223,235 Fufeitong Group 46,525 136,697 19,819 * ** *** |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings/ (Loss) Per Share | |
Earnings/ (Loss) Per Share | 19. Earnings/(Loss) Per Share The following table sets forth the computation of basic and diluted net earnings/(loss) per share for the following periods: For the year ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Numerator: Net (loss)/income (7,179,742) 7,768,670 31,538,062 4,572,589 Net (loss)/income attributable to ordinary shareholders – basic (7,179,742) 7,768,670 31,538,062 4,572,589 Dilution effect arising from convertible bonds — — 51,655 7,489 Net (loss)/income attributable to ordinary shareholders – diluted (7,179,742) 7,768,670 31,589,717 4,580,078 Denominator (in thousands of shares): Weighted-average number of ordinary shares outstanding – basic 4,768,343 5,012,651 5,057,540 5,057,540 Adjustments for dilutive RSUs and share options — 701,113 640,545 640,545 Conversion of convertible bonds to Class A ordinary shares — — 63,206 63,206 Weighted-average number of ordinary shares outstanding – diluted 4,768,343 5,713,764 5,761,291 5,761,291 (Loss)/earnings per share – basic (1.51) 1.55 6.24 0.90 (Loss)/earnings per share –diluted (1.51) 1.36 5.48 0.79 During the years ended December 31, 2020, 2021 and 2022, the Company issued 12,050,000, 40,000,000 and 220,805,720 ordinary shares to its share depositary bank, respectively. No consideration was received by the Company for the issuance. As of December 31, 2022, 271,049,824 out of the total 273,455,720 ordinary shares were used to settle share-based compensation. The remaining 2,405,896 ordinary shares are legally issued and outstanding but are treated as escrowed shares for accounting purposes and therefore, have been excluded from the computation of earnings/(loss) per share. The Group did not include certain share options, restricted shares and the effect of convertible bonds in the computation of diluted loss per share for the year ended December 31, 2020 because those share options, restricted shares and convertible bonds were anti-dilutive. The Group did not include the effect of convertible bonds in the computation of diluted earnings per share for the year ended December 31, 2021 because those convertible bonds were anti-dilutive. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets | |
Restricted Net Assets | 20. The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries, the VIE and subsidiaries of the VIE. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries, the VIE and subsidiaries of the VIE only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries, the VIE and subsidiaries of the VIE. In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve fund until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The WFOE was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. For the years ended December 31, 2020, 2021 and 2022, WFOE did not have accumulated after-tax profit and therefore no statutory reserves have been allocated. 20. Foreign exchange and other regulations in the PRC may further restrict the Company’s VIE from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital and statutory reserves of the Company’s PRC Subsidiaries and the equity of the VIE, as determined pursuant to PRC generally accepted accounting principles. As of December 31, 2022, restricted net assets of the Company’s PRC subsidiaries, the VIE and subsidiaries of the VIE were RMB57,000,116 (US$8,264,240). |
Mainland China Employee Contrib
Mainland China Employee Contribution Plan | 12 Months Ended |
Dec. 31, 2022 | |
Mainland China Employee Contribution Plan | |
Mainland China Employee Contribution Plan | 21. As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan based on certain percentages of employees’ salaries. The total expenses the Group incurred for the plan were RMB277,429, RMB829,440 and RMB1,131,829 (US$164,100) for the years ended December 31, 2020, 2021 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 22. (a) Operating lease commitments The Company leases offices for operation under operating leases. Future minimum lease payments under non-cancellable operating leases with initial terms in excess of one year is included in Note 8. (b) Investment commitments The Group’s investment commitments primarily relate to capital contributions obligation under certain arrangement which does not have contractual maturity date. As of December 31, 2022, the total investment commitments contracted but not yet reflected in the financial statements amounted to approximately RMB80,000 (US$11,599). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events | |
Subsequent Events | 23.Subsequent Events In March 2023, a number of media channels reported cybersecurity concerns about Pinduoduo mobile app alleged by an anonymous source. At present, the exact impact of these allegations remains uncertain and cannot be reasonably estimated. |
Condensed Financial Information
Condensed Financial Information of the Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information of the Company | |
Condensed Financial Information of the Company | 24. The following is the condensed financial information of the Company on a parent company only basis. As of December 31, 2021 2022 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,269 61,553 8,924 Others 390 443 64 Total current assets 2,659 61,996 8,988 Non-current assets Intangible asset 674,057 109,847 15,926 Investments in subsidiaries, the VIE and subsidiaries of the VIE 86,252,341 133,085,591 19,295,598 Total non-current assets 86,926,398 133,195,438 19,311,524 Total assets 86,929,057 133,257,434 19,320,512 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other liabilities 24,607 25,017 3,627 Convertible bonds, current portion — 13,885,751 2,013,245 Total current liabilities 24,607 13,910,768 2,016,872 Convertible bonds 11,788,907 1,575,755 228,463 Other non-current liabilities 996 — — Total non-current liabilities 11,789,903 1,575,755 228,463 Total liabilities 11,814,510 15,486,523 2,245,335 Shareholders’ equity Class A ordinary shares (US$0.000005 par value; 77,300,000,000 shares authorized; 5,057,542,676 and 5,278,348,396 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 161 170 25 Additional paid-in capital 95,340,819 99,250,468 14,389,965 Statutory reserves — 5,000 725 Accumulated other comprehensive (loss)/income (2,519,900) 3,322,238 481,679 (Accumulated deficits)/retained earnings (17,706,533) 15,193,035 2,202,783 Total shareholders’ equity 75,114,547 117,770,911 17,075,177 Total liabilities and shareholders’ equity 86,929,057 133,257,434 19,320,512 24. For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Costs of revenues (623,524) (580,506) (605,611) (87,805) Sales and marketing expenses (36,940) (27,839) — — General and administrative expenses (6,746) (40,826) (54,605) (7,917) Total operating expenses (43,686) (68,665) (54,605) (7,917) Operating loss (667,210) (649,171) (660,216) (95,722) Interest income 126,502 32,452 11,693 1,695 Interest expense (695,794) (1,221,846) (51,655) (7,489) Other gain/(loss) 53,244 27,497 (14) (2) Share of results from subsidiaries, the VIE and subsidiaries of the VIE (5,996,484) 9,579,738 32,238,254 4,674,107 (Loss)/profit before income tax (7,179,742) 7,768,670 31,538,062 4,572,589 Income tax expenses — — — — Net (loss)/income (7,179,742) 7,768,670 31,538,062 4,572,589 Other comprehensive (loss)/income Foreign currency translation difference, net of tax of nil (2,495,958) (1,472,172) 5,860,304 849,664 Unrealized losses on available-for-sale investments, net of tax — — (18,166) (2,634) Total other comprehensive (loss)/income (2,495,958) (1,472,172) 5,842,138 847,030 Comprehensive (loss)/income (9,675,700) 6,296,498 37,380,200 5,419,619 For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net cash generated from/(used in) operating activities 735,231 82,074 (24,202) (3,509) Cash flows from investing activities: Proceeds from sales of short-term investments 6,034,863 5,764,134 — — Cash given to purchase of short-term investments (6,250,248) — — — Cash received from subsidiaries, the VIE and subsidiaries of the VIE, net — — 65,707 9,527 Cash given to subsidiaries, the VIE and subsidiaries of the VIE, net (52,051,474) (5,855,304) — — Net cash (used in)/generated from investing activities (52,266,859) (91,170) 65,707 9,527 Cash flows from financing activities: Proceeds from the private placements 11,063,339 — — — Net proceeds from the follow-on offerings 26,805,438 — — — Net proceeds from the issuance of convertible bonds 13,024,199 — — — Others (6) 318 10,079 1,461 Net cash generated from financing activities 50,892,970 318 10,079 1,461 Exchange rate effect on cash, cash equivalents and restricted cash (16,490) 4,481 7,700 1,116 Net (decrease)/increase in cash, cash equivalents and restricted cash (655,148) (4,297) 59,284 8,595 Cash, cash equivalents and restricted cash at beginning of year 661,714 6,566 2,269 329 Cash, cash equivalents and restricted cash at end of year 6,566 2,269 61,553 8,924 24. Basis of presentation Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has 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 investment in its subsidiaries, the VIE and subsidiaries of the VIE. The parent company records its investment in its subsidiaries, the VIE and its subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the subsidiaries of the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries, the VIE and subsidiaries of the VIE have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet dates and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to allowance for doubtful accounts arising from expected credit losses, economic lives and impairment of long-lived assets, valuation of short-term and long-term investments, valuation allowance for deferred tax assets, uncertain tax position, valuation for share-based compensation, liability component of convertible bonds and incremental borrowing rates for operating lease liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign currency | (d) Foreign currency The functional currency of the Company and its major overseas subsidiaries is the US$. The Company’s PRC subsidiaries, the VIE and subsidiaries of the VIE determined their functional currencies to be RMB based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive income/(loss). The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income/(loss), a component of shareholders’ equity. |
Convenience translation | (e) Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.8972 on December 30, 2022, the last business day in December 2022, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use and have original maturities of three months or less when purchased. |
Restricted cash | (g) Restricted cash Restricted cash mainly represents cash received from consumers and reserved in a bank supervised account for payments to merchants. |
Investments | (h) Investments The Group’s short-term investments and long-term investments included in other non-current assets primarily consist of time deposits, held-to-maturity debt securities, investment in convertible bonds, available-for-sale debt securities and equity-method investments. The classification of an investment is determined based on the Group’s ability and intent to hold the investment, the nature of the investment, and the degree to which the Group may exercise influence over the investee. All highly liquid investments with original maturities of greater than three months but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments. Long-term debt securities with maturities of greater than twelve months, that the Group has positive intent and ability to hold to maturity, which are stated at amortized cost, are classified as other non-current assets. Investments in debt securities that the Group has positive intent and ability to hold to maturity are categorized as “held to maturity”. Wealth management products with the intention to sell in the near term are classified as trading securities and measured at fair value. Any realized gains or losses on the sale of the held-to-maturity debt securities and trading securities are determined on a specific identification method and are reflected in earnings during the period in which gains or losses are realized. Realized and unrealized gains and losses and interest income from the investments are recorded in “Interest and investment income, net” in the consolidated statements of comprehensive income/(loss). The Group has elected the fair value option for investment in convertible bonds in accordance with ASC Subtopic 825-10 (“ASC 825-10”), Recognition and Measurement of Financial Assets and Financial Liabilities The Group accounts for available-for-sale debt securities in accordance with ASC Topic 320, Investments-Debt Securities The Group’s investments in common stock or in-substance common stock in entities in which it can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting and classified as “equity method investments” in accordance with ASC Subtopics 323-10 (“ASC 323-10”), Investments-Equity Method and Joint Ventures: Overall |
Property, equipment and software, net | (i) Property, equipment and software, net Property, equipment and software are stated at cost and are depreciated and amortized using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Computer equipment 1-3 years Office equipment 3 years Purchased software 3-5 years Leasehold improvements Over the shorter of lease terms or the estimated useful lives of the assets Repair and maintenance costs are charged to expense as incurred, whereas the costs of renewals and betterments that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive income/(loss). |
Impairment of long-lived assets other than goodwill | (j) Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets, including fixed assets and intangible assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Group recognizes an impairment loss based on the excess of the carrying amounts of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there were no impairment of any of the Group’s long-lived assets. |
Fair value of financial instruments | (k) Fair value of financial instruments The Group’s financial instruments include cash and cash equivalents, restricted cash, receivables from online payment platforms, amounts due from/to related parties, merchant deposits, payables to merchants, short-term investments, long-term time deposits and debt securities and convertible bonds. For the aforementioned financial instruments included in current assets and liabilities, except for ones measured at fair value, their carrying amount approximate to their respective fair values because of the general short maturities. The carrying amounts of time deposits and long-term held-to-maturity debt securities approximate to fair values as the related interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. The fair value of convertible bonds that are not reported at fair value are disclosed in Note 12. The Group applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. ASC 820 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. |
Revenue recognition | (l) Revenue recognition Revenues are principally comprised of those generated from online marketplace services and merchandise sales. Revenues from online marketplace services primarily consist of online marketing services revenues and transaction services fees. Revenues represent the amount of consideration that the Company is entitled to in exchange for the transfer of promised goods or services in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). Consistent with the criteria of ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers Online marketing services The Group entered into contractual agreements with certain merchants to provide online marketing services on the Group’s online marketplace for which the Group receives service fees from merchants. The Group provides merchants with performance-based marketing services that match product listings appearing in search or browser results on the Group’s online marketplace. Merchants prepay for online marketing services that are primarily charged on a cost-per-click basis. Under ASC 606, the related revenues are recognized at a point of time when consumers click the merchants’ product listings and the online marketing services are completed by the Group for the merchants. The positioning of such listings and the price for such positioning are determined through an online auction system, which facilitates price discovery through a market-based mechanism. The Group also provides display marketing services that allow the merchants to place advertisements on the platform primarily at fixed prices. In general, the merchants need to prepay for display marketing which is accounted for as customer advances and deferred revenues and revenues are primarily recognized over the period during which the advertising services are provided. Transaction services The Group charges fees expected to receive from transaction services to merchants for sales transactions completed on our platforms, where the Group does not take control of the products provided by merchants at any point in time during the transactions and do not have latitude over pricing of the merchandise. Revenues related to transaction services are recognized in consolidated statements of comprehensive income/(loss) at a point in time when the Group’s service obligations to the merchants are determined to have been completed under each sales transaction upon the confirmation of the receipts of goods by the consumers. Merchandise sales The Group in certain cases acquires the merchandises from suppliers and sells directly to the customers. The Group acts as a principal as it obtains control of the merchandises, is primarily obligated for the merchandise sold to the customers, bears inventory risks and has the latitude in establishing prices. Revenues from merchandise sales are recorded on a gross basis, net of discounts and return allowances when the product is delivered and title is passed to customers in this type of transaction. Proceeds received in advance of customer acceptance are recorded as current liabilities in customer advances and deferred revenues. Incentives provided to the consumers In order to promote its online marketplace and attract more registered consumers, the Group at its own discretion provides various forms of incentives, for example, coupons, credits and other subsidies that are not specific to any merchant, to the consumers who are not customers of the Group. Despite the absence of any explicit contractual obligations to incentivize the consumers on behalf of the merchants, the Group further evaluated the varying features of different incentive programs to determine that whether the incentives represent implicit obligations to the consumers on behalf of merchants and if so, should be recorded as reduction of revenues. Based on that evaluation, the Group determined that incentives provided to the consumers are not considered as payments to the merchant-customers. The Group at its discretion issues to the consumers coupons and credits upon completion of certain actions to promote the Group’s platform. The coupons can be used for future purchases of eligible merchandise offered on the Group’s online marketplace to reduce purchase price and the credits can be used to redeem cash from the Group. The Group recognizes the amounts of coupons and credits as marketing expenses when future purchases are completed or when the credits are issued. Other subsidies unconditionally provided to the consumers are recognized as marketing expenses when the related transaction services revenues from merchants are recognized. Certain subsidies are provided to consumers upon their completion of certain actions to promote the platform, and the Group records the related costs in marketing expenses upon the completion of such promotion tasks. |
Costs of revenues | (o) Costs of revenues Costs of revenues consist primarily of payment processing fees paid to third party online payment platforms, costs associated with the operation of the platform and others, such as costs and expenses attributable to merchandise sales, fulfillment fees, merchant support services, bandwidth and server costs, amortization, depreciation and maintenance costs, payroll, employee benefits and share-based compensation expenses, call center, surcharges and other expenses directly attributable to the online marketplace services. |
Advertising expenditures | (p) Advertising expenditures Advertising expenditures are expensed when incurred and are included in sales and marketing expenses. Total amount of advertising expenditures and incentive programs recognized in sales and marketing expenses were RMB39,297,890, RMB41,456,838 and RMB49,971,418 (US$7,245,175) for the years ended December 31, 2020, 2021 and 2022, respectively. |
Research and development expenses | (q) Research and development expenses Research and development expenses include payroll, employee benefits, and other operating expenses associated with research and platform development. Research and development expenses also include rent, depreciation and other related expenses. To date, expenditures incurred between when the application has reached the development stage and when it is substantially complete and ready for its intended use have been inconsequential and, as a result, the Group did not capitalize any software development costs in the accompanying consolidated financial statements. |
Government subsidies | (r) Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Such amounts are recognized as “Other income, net” upon receipt and when all conditions attached to the grants are fulfilled. |
Credit loss | (s) Credit loss The Group adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Leases | (t) Leases The Group as the lessee determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Group’s lease portfolio consisted entirely of operating leases as of December 31, 2020, 2021 and 2022. The Group’s leases do not contain any residual value guarantees or material restrictive covenants. The Group also elected the practical expedient of the short-term lease exemption for contracts with lease terms of 12 months or less. At the commencement date of an operating lease, the Group records a right-of-use (“ROU”) asset and lease liability based on the present value of the lease payments over the lease term. Variable lease payments not dependent on an index or rate are excluded from the ROU asset and lease liability calculations and are recognized in expense in the period which the obligation for those payments is incurred. As the rate implicit in the Group’s lease is not typically readily available, the Group uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Group could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise that option. The Group accounts for lease and non-lease components separately. |
Income taxes | (u) Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740(‘‘ASC 740’’), Income Taxes The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognized tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive income/(loss) as income tax expenses. |
Share-based compensation | (v) Share-based compensation The Group applies ASC 718 (‘‘ASC 718’’), Compensation—Stock Compensation Compensation-Stock Compensation Improvement to Employee Share-based Payment Accounting |
Employee benefit expenses | (w) Employee benefit expenses As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. |
Comprehensive income/(loss) | (x) Comprehensive income/(loss) Comprehensive income/(loss) is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income |
Earnings/(Loss) per share | (y) Earnings/(Loss) per share Basic earnings/(loss) per share is computed by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income/(loss) is allocated between ordinary shares and other participating securities based on their participating rights. Diluted earnings/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of unvested restricted share unites (‘‘RSUs’’) and shares issuable upon the exercise of share options using the treasury stock method, and conversion of convertible bonds using the if-converted method. Ordinary equivalent shares are not included in the denominator of the diluted earnings/(loss) per share calculation when inclusion of such shares would be anti-dilutive. Basic and diluted earnings/(loss) per share are not reported separately for Class A ordinary shares or Class B ordinary shares (the ‘‘Ordinary Shares’’) as each class of shares has the same rights to undistributed and distributed earnings. |
Segment reporting | (z) Segment reporting The Group follows ASC 280, Segment Reporting |
Recent accounting pronouncements | (aa) Recent accounting pronouncements The Group does not expect the adoption of any recently issued accounting pronouncements to have a material impact on the financial statements. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization | |
Schedule of company's major subsidiaries, consolidated VIE and the subsidiary of the VIE | Percentage of Date of Place of ownership by the Principal Entity incorporation incorporation Company activities Direct Indirect Subsidiaries: HongKong Walnut Street Limited (“Walnut HK”) April 28, 2015 Hong Kong 100 % — Holding company Hangzhou Weimi Network Technology Co., Ltd. (“Hangzhou Weimi” or the “WFOE”) May 28, 2015 PRC 100 % — Technology research and development Walnut Street (Shanghai) Information Technology Co., Ltd. (“Walnut Shanghai”) January 25,2018 PRC 100 % — Technology research and development Shenzhen Qianhai Xinzhijiang Information Technology Co., Ltd. (“Xinzhijiang”) April 25, 2018 PRC 100 % — E-commerce platform Shanghai Yucan Information Technology Co., Ltd. September 14, 2020 PRC 100 % — E-commerce platform VIE: Hangzhou Aimi Network Technology Co., Ltd. (“VIE”) April 14, 2015 PRC — 100 % E-commerce platform VIE’s subsidiary: Shanghai Xunmeng Information Technology Co., Ltd. (“Shanghai Xunmeng”) January 9, 2014 PRC — 100 % E-commerce platform |
Schedule of financial information for the VIE before eliminating the inter-company balances and transactions between the VIE and its subsidiaries, the subsidiaries of the VIE and other entities within the Group | As of December 31, 2021 2022 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,430,440 2,725,249 395,124 Restricted cash 59,402,079 57,955,328 8,402,733 Receivables from online payment platforms 668,953 426,193 61,792 Short-term investments 12,306,340 45,273,907 6,564,099 Amounts due from related parties (i) 4,198,391 6,106,160 885,310 Amounts due from Group companies 40,425,872 34,810,132 5,046,995 Prepayments and other current assets 1,330,772 1,280,559 185,664 Total current assets 120,762,847 148,577,528 21,541,717 Non-current assets Property, equipment and software, net 2,116,566 950,273 137,777 Intangible asset 27,163 24,155 3,502 Right-of-use assets 417,455 426,429 61,826 Deferred tax assets 19,908 14,556 2,110 Other non-current assets 5,300,938 10,444,964 1,514,377 Total non-current assets 7,882,030 11,860,377 1,719,592 Total assets 128,644,877 160,437,905 23,261,309 As of December 31, 2021 2022 RMB RMB US$ LIABILITIES Current liabilities Amounts due to related parties (i) 1,962,029 1,671,246 242,308 Amounts due to Group companies 27,978,153 22,452,033 3,255,239 Customer advances and deferred revenues 1,158,738 1,369,573 198,569 Payable to merchants 61,947,517 62,006,946 8,990,162 Accrued expenses and other liabilities 9,360,166 11,817,208 1,713,334 Merchant deposits 13,360,409 14,681,913 2,128,677 Lease liabilities 138,667 156,776 22,730 Total current liabilities 115,905,679 114,155,695 16,551,019 Lease liabilities 305,068 290,412 42,106 Deferred tax liabilities 19,217 — — Total non-current liabilities 324,285 290,412 42,106 Total liabilities 116,229,964 114,446,107 16,593,125 For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net revenues from Group companies 12,602,673 22,136,726 30,199,788 4,378,558 External 38,749,188 55,740,613 73,431,914 10,646,626 Net revenues 51,351,861 77,877,339 103,631,702 15,025,184 Net income 2,552,665 15,169,180 33,595,051 4,870,825 (i) Information with respect to related parties is discussed in Note 18. For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net cash generated from operating activities 29,379,799 34,365,025 25,650,939 3,719,037 Net cash used in investing activities (11,802,074) (26,828,581) (43,513,150) (6,308,814) Net cash generated from/(used in) financing activities 7,818,632 (1,445,969) 16,710,269 2,422,761 Net increase/(decrease) in cash, cash equivalents and restricted cash 25,396,357 6,090,475 (1,151,942) (167,016) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of the assets | Category Estimated useful life Computer equipment 1-3 years Office equipment 3 years Purchased software 3-5 years Leasehold improvements Over the shorter of lease terms or the estimated useful lives of the assets |
Short-term Investments (Tables)
Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short-term Investments | |
Schedule of Short-term Investments | As of December 31, 2021 2022 2022 RMB RMB US$ Time deposits and held-to-maturity debt securities 86,203,296 113,872,353 16,509,939 Trading securities 313,322 6,917 1,003 Investments in convertible bonds — 1,233,284 178,809 86,516,618 115,112,554 16,689,751 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Current Assets | |
Schedule of components of prepayments and other current assets | As of December 31, 2021 2022 2022 RMB RMB US$ Prepayments 1,392,929 966,439 140,120 VAT recoverable 670,541 326,427 47,328 Interest receivables 364,594 119,564 17,335 Rental and other deposits 111,139 86,915 12,602 Others 885,484 799,034 115,850 3,424,687 2,298,379 333,235 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Equipment and Software, Net | |
Schedule of property, equipment and software, net | As of December 31, 2021 2022 2022 RMB RMB US$ At cost: Computer equipment, office equipment and purchased software 3,135,385 3,591,861 520,771 Leasehold improvement 28,773 30,249 4,386 3,164,158 3,622,110 525,157 Less: accumulated depreciation (960,835) (2,577,263) (373,668) 2,203,323 1,044,847 151,489 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
Schedule of intangible asset | As of December 31, 2021 2022 2022 RMB RMB US$ Balance as of January 1 1,276,751 701,220 101,667 Addition 30,073 — — Amortization (583,416) (608,618) (88,241) Foreign currency translation difference (22,188) 41,400 6,002 Balance as of December 31 701,220 134,002 19,428 |
Schedule of estimated annual amortization expense | Amortization RMB US$ 2023 112,854 16,362 2024 3,007 436 2025 3,007 436 2026 3,007 436 2027 and after 12,127 1,758 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Summary of maturity analysis of the Company's operating lease liabilities and reconciliation of the undiscounted cash flows to the operating lease liabilities | As of December 31, 2022 RMB US$ 2023 650,617 94,331 2024 497,166 72,082 2025 274,728 39,832 2026 67,483 9,784 2027 and after 75,197 10,903 Total undiscounted cash flows 1,565,191 226,932 Less: imputed interest (92,373) (13,393) Present value of lease liabilities 1,472,818 213,539 |
Summary of supplemental information related to leases | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Cash payments for operating leases 166,967 388,144 534,784 77,536 ROU assets obtained in exchange for new operating lease liabilities 265,821 704,142 1,068,063 154,855 |
Other Non-Current Asset (Tables
Other Non-Current Asset (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Non-current Assets | |
Schedule of long-term time deposits and held-to-maturity debt securities by contractual maturity date | As of December 31, 2021 2022 2022 RMB RMB US$ Due in 1 year through 2 years 8,936,424 5,536,768 802,756 Due in 2 years through 3 years 4,072,475 5,503,515 797,935 13,008,899 11,040,283 1,600,691 |
Schedule of contractual maturity date of the investments | Fair Value Gross Gross Fair Value (Net Amortized Unrealized Unrealized (Net Carrying Carrying Cost Gains Losses Amount) Amount) RMB RMB RMB RMB US$ Due in 5 years through 10 years 3,596,846 4,626 (25,998) 3,575,474 518,395 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities | |
Schedule of accrued expenses and other liabilities | As of December 31, 2021 2022 2022 RMB RMB US$ Accrued advertising and marketing expenses 3,652,648 5,850,125 848,188 VAT and other tax payable 5,734,281 6,970,790 1,010,670 Payroll payable 1,949,173 2,364,723 342,853 Accounts payable 1,951,681 3,978,818 576,874 Others 797,730 1,796,267 260,434 14,085,513 20,960,723 3,039,019 |
Convertible Bonds (Tables)
Convertible Bonds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Bonds | |
Schedule of cumulative effects of changes to the Group's consolidated balance sheet | Balance at Balance at December January 31, 2021 Adjustment 1, 2022 RMB RMB RMB Liabilities Convertible bonds 11,788,907 2,316,324 14,105,231 Equity Additional paid-in capital 95,340,819 (3,818,926) 91,521,893 Accumulated other comprehensive loss (2,519,900) 136,096 (2,383,804) Accumulated deficits (17,706,533) 1,366,506 (16,340,027) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Schedule of financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy | Fair Value Measurements Quoted Price in Significant Active Market Other Unobservable for Identical Observable Inputs Assets (Level 1) Inputs (Level 2) (Level 3) RMB RMB RMB Recurring As of December 31, 2021: Short-term investments: Trading securities — 313,322 — Other non-current assets: Investments in convertible bonds — — 1,290,901 — 313,322 1,290,901 Fair Value Measurements Quoted Price in Significant Active Market Other Unobservable for Identical Observable Inputs Assets (Level 1) Inputs (Level 2) (Level 3) RMB RMB RMB Recurring As of December 31, 2022: Cash equivalents Money market funds 7,791,628 — — Short-term investments: Trading securities 6,917 — — Investments in convertible bonds — — 1,233,284 Other non-current assets: Available-for-sale debt securities — 3,575,474 — 7,798,545 3,575,474 1,233,284 |
Schedule of reconciliations of assets categorized within level 3 under the fair value hierarchy | Amounts RMB Balance at December 31, 2020 1,388,916 Net unrealized fair value (67,065) Foreign currency translation adjustments (30,950) Balance at December 31, 2021 1,290,901 Net unrealized fair value (221,640) Foreign currency translation adjustments 164,023 Balance at December 31, 2022 1,233,284 |
Schedule of fair value instruments on unobservable input reconciliation | Fair Value disclosure Quoted Price in Significant Active Market Other Unobservable for Identical Observable Inputs Assets (Level 1) Inputs (Level 2) (Level 3) RMB RMB RMB As of December 31, 2021: Short-term investments: Time deposits and held-to-maturity debt securities — 86,203,296 — Other non-current assets: Time deposits and held-to-maturity debt securities — 13,008,899 — Convertible bonds — 13,690,953 — As of December 31, 2022: Short-term investments: Time deposits and held-to-maturity debt securities — 113,872,353 — Convertible bonds, current portion — 13,093,448 — Other non-current assets: Time deposits and held-to-maturity debt securities — 11,040,283 — Convertible bonds — 3,056,964 — |
Accumulated other comprehensi_2
Accumulated other comprehensive (loss)/income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated other comprehensive (loss)/income | |
Schedule of accumulated other comprehensive (loss)/income | Net change in unrealized losses on Foreign currency available-for- translation sale debt difference securities Total RMB RMB RMB Balances as of January 1, 2020 1,448,230 — 1,448,230 Other comprehensive loss (2,495,958) — (2,495,958) Balances as of December 31, 2020 (1,047,728) — (1,047,728) Other comprehensive loss (1,472,172) — (1,472,172) Balances as of December 31, 2021 (2,519,900) — (2,519,900) Cumulative effect of accounting change 136,096 — 136,096 Balances as of January 1, 2022 (2,383,804) — (2,383,804) Other comprehensive income/(loss) 5,724,208 (18,166) 5,842,138 Balances as of December 31, 2022 3,340,404 (18,166) 3,322,238 Balances as of December 31, 2022 (US$) 484,313 (2,634) 481,679 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | |
Schedule of revenues | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Online marketing services and others 47,953,779 72,563,402 102,721,924 14,893,279 Transaction services 5,787,415 14,140,449 27,626,494 4,005,465 Merchandise sales 5,750,671 7,246,088 209,171 30,327 59,491,865 93,949,939 130,557,589 18,929,071 |
Schedule of information about contract liabilities, comprising customer advances, deferred revenues and portions of Payables to merchants | As of December 31, 2021 December 31, 2022 December 31, 2022 RMB RMB US$ Customer advances and deferred revenues 1,166,764 1,389,655 201,481 Payable to merchants 319,329 637,240 92,391 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation | |
Schedule of assumptions used to estimate the fair value of options | For the years ended December 31, 2020 2021 2022 Risk-free interest rates 0.62%-1.13% 1.31%-1.69% 1.52%-4.08% Expected volatility 43.89%-46.68% 46.28%-46.87% 46.29%-50.26% Expected dividend yield 0% 0% 0% Exercise multiple 2.80 2.80 2.80 Post-vesting forfeit rate 0% 0% 0% Fair value of underlying ordinary shares $8.9450-$34.1350 $22.0375-$46.5375 $10.6625-$17.8550 Fair value of share option $8.9385-$34.1285 $22.0310-$46.5310 $10.6560-$17.8485 |
Schedule of recognized share-based compensation expenses | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Costs of revenues 32,291 26,624 33,788 4,899 Sales and marketing expenses 1,093,547 1,612,219 2,158,676 312,979 General and administrative expenses 966,985 792,421 3,004,327 435,586 Research and development expenses 1,520,220 2,343,466 2,521,574 365,594 3,613,043 4,774,730 7,718,365 1,119,058 |
RSU | |
Share-Based Compensation | |
Schedule of Group's share-based compensation activities | Weighted Number of average grant RSUs date fair value US$ Outstanding as of December 31, 2021 41,518,464 19.0563 Granted 59,628,020 13.0177 Vested (15,453,196) 14.7922 Forfeited (3,708,800) 18.1311 Outstanding as of December 31, 2022 81,984,488 15.5100 |
Stock option | |
Share-Based Compensation | |
Schedule of Group's share-based compensation activities | Weighted Weighted Weighted average average average Aggregate remaining Number of exercise grant date intrinsic contractual share options price fair value value term US$ US$ US$ Years Outstanding as of December 31, 2021 720,003,536 0.0065 4.0216 10,489,372 6.07 Granted 23,652,900 0.0065 13.4311 Forfeited (6,342,000) 0.0065 8.7834 Exercised (225,682,548) 0.0065 2.1461 Outstanding as of December 31, 2022 511,631,888 0.0065 5.2248 10,427,570 15.44 Vested and expected to vest as of December 31, 2022 511,631,888 0.0065 5.2248 10,427,570 15.44 Exercisable as of December 31, 2022 442,371,733 0.0065 3.5480 9,015,978 15.03 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of Group's loss before income taxes | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Non-PRC (3,763,962) (5,633,012) (7,839,712) (1,136,651) PRC (3,415,780) 15,335,267 44,103,441 6,394,397 (7,179,742) 9,702,255 36,263,729 5,257,746 |
Schedule of income taxes | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Current income tax — 1,933,798 5,754,253 834,288 Deferred income tax benefit — (213) (1,028,586) (149,131) — 1,933,585 4,725,667 685,157 |
Schedule of reconciliations of the income tax expenses | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ (Loss)/profit before income tax expense (7,179,742) 9,702,255 36,263,729 5,257,746 PRC statutory tax rate 25 % 25 % 25 % 25 % Income tax (benefits)/expense at PRC statutory tax rate (1,794,935) 2,425,564 9,065,932 1,314,437 International tax rate differential 1,077,383 1,522,480 2,013,305 291,902 Preferential tax rate differential 57,483 (1,439,100) (4,442,822) (644,149) Non-deductible expenses 108 167,098 361,045 52,346 Non-taxable income (164,120) (139,417) (122,067) (17,698) Deferred tax items tax rate differential (110,821) 51,493 527,035 76,413 Additional deduction of research and development expenses (124,858) (223,591) (444,071) (64,384) Change in valuation allowance 1,059,760 (430,942) (2,232,690) (323,710) Income tax expenses — 1,933,585 4,725,667 685,157 |
Schedule of significant components of the Group's deferred tax assets | As of December 31, 2021 2022 2022 RMB RMB US$ Deferred tax assets Tax losses carried forward 1,432,514 1,472,388 213,476 Carryforwards of non-deductible advertising expenses and donations 1,331,067 79,608 11,542 Others 31,926 58,994 8,553 Less: valuation allowance (2,764,003) (531,313) (77,033) Total deferred tax assets 31,504 1,079,677 156,538 Total deferred tax liabilities (31,291) (47,672) (6,911) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Schedule of relationship with related parties | Names of related parties Relationship with the Group Tencent and its affiliates (“Tencent Group”) A shareholder of the Company Ningbo Hexin Equity Investment Partnership Company controlled by one of the executive officers of the Company Shanghai Fufeitong Information Service Co., Ltd. and its affiliates (“Fufeitong Group”) Company controlled by one of the executive officers of the Company |
Schedule of significant related party transactions | For the years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Services provided to: Fufeitong Group — — 10,765 1,561 Services received from: Tencent Group 10,541,479 8,416,635 7,061,132 1,023,769 Fufeitong Group 45,364 211,414 653,972 94,817 |
Schedule of related party balances | As of December 31, 2021 2022 2022 RMB RMB US$ Amounts due from related parties: Current: Tencent Group* 2,803,265 2,763,924 400,731 Ningbo Hexin Equity Investment Partnership ** 697,632 697,632 101,147 Fufeitong Group*** 748,875 2,856,856 414,205 Amounts due to related parties: Current: Tencent Group 1,916,482 1,539,694 223,235 Fufeitong Group 46,525 136,697 19,819 * ** *** |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings/ (Loss) Per Share | |
Schedule of computation of basic and diluted net loss per share | For the year ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Numerator: Net (loss)/income (7,179,742) 7,768,670 31,538,062 4,572,589 Net (loss)/income attributable to ordinary shareholders – basic (7,179,742) 7,768,670 31,538,062 4,572,589 Dilution effect arising from convertible bonds — — 51,655 7,489 Net (loss)/income attributable to ordinary shareholders – diluted (7,179,742) 7,768,670 31,589,717 4,580,078 Denominator (in thousands of shares): Weighted-average number of ordinary shares outstanding – basic 4,768,343 5,012,651 5,057,540 5,057,540 Adjustments for dilutive RSUs and share options — 701,113 640,545 640,545 Conversion of convertible bonds to Class A ordinary shares — — 63,206 63,206 Weighted-average number of ordinary shares outstanding – diluted 4,768,343 5,713,764 5,761,291 5,761,291 (Loss)/earnings per share – basic (1.51) 1.55 6.24 0.90 (Loss)/earnings per share –diluted (1.51) 1.36 5.48 0.79 |
Condensed Financial Informati_2
Condensed Financial Information of the Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information of the Company | |
Condensed balance sheets of parent company | As of December 31, 2021 2022 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,269 61,553 8,924 Others 390 443 64 Total current assets 2,659 61,996 8,988 Non-current assets Intangible asset 674,057 109,847 15,926 Investments in subsidiaries, the VIE and subsidiaries of the VIE 86,252,341 133,085,591 19,295,598 Total non-current assets 86,926,398 133,195,438 19,311,524 Total assets 86,929,057 133,257,434 19,320,512 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other liabilities 24,607 25,017 3,627 Convertible bonds, current portion — 13,885,751 2,013,245 Total current liabilities 24,607 13,910,768 2,016,872 Convertible bonds 11,788,907 1,575,755 228,463 Other non-current liabilities 996 — — Total non-current liabilities 11,789,903 1,575,755 228,463 Total liabilities 11,814,510 15,486,523 2,245,335 Shareholders’ equity Class A ordinary shares (US$0.000005 par value; 77,300,000,000 shares authorized; 5,057,542,676 and 5,278,348,396 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 161 170 25 Additional paid-in capital 95,340,819 99,250,468 14,389,965 Statutory reserves — 5,000 725 Accumulated other comprehensive (loss)/income (2,519,900) 3,322,238 481,679 (Accumulated deficits)/retained earnings (17,706,533) 15,193,035 2,202,783 Total shareholders’ equity 75,114,547 117,770,911 17,075,177 Total liabilities and shareholders’ equity 86,929,057 133,257,434 19,320,512 |
Condensed statements of comprehensive income of parent company | For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Costs of revenues (623,524) (580,506) (605,611) (87,805) Sales and marketing expenses (36,940) (27,839) — — General and administrative expenses (6,746) (40,826) (54,605) (7,917) Total operating expenses (43,686) (68,665) (54,605) (7,917) Operating loss (667,210) (649,171) (660,216) (95,722) Interest income 126,502 32,452 11,693 1,695 Interest expense (695,794) (1,221,846) (51,655) (7,489) Other gain/(loss) 53,244 27,497 (14) (2) Share of results from subsidiaries, the VIE and subsidiaries of the VIE (5,996,484) 9,579,738 32,238,254 4,674,107 (Loss)/profit before income tax (7,179,742) 7,768,670 31,538,062 4,572,589 Income tax expenses — — — — Net (loss)/income (7,179,742) 7,768,670 31,538,062 4,572,589 Other comprehensive (loss)/income Foreign currency translation difference, net of tax of nil (2,495,958) (1,472,172) 5,860,304 849,664 Unrealized losses on available-for-sale investments, net of tax — — (18,166) (2,634) Total other comprehensive (loss)/income (2,495,958) (1,472,172) 5,842,138 847,030 Comprehensive (loss)/income (9,675,700) 6,296,498 37,380,200 5,419,619 |
Condensed statement of cash flows of parent company | For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Costs of revenues (623,524) (580,506) (605,611) (87,805) Sales and marketing expenses (36,940) (27,839) — — General and administrative expenses (6,746) (40,826) (54,605) (7,917) Total operating expenses (43,686) (68,665) (54,605) (7,917) Operating loss (667,210) (649,171) (660,216) (95,722) Interest income 126,502 32,452 11,693 1,695 Interest expense (695,794) (1,221,846) (51,655) (7,489) Other gain/(loss) 53,244 27,497 (14) (2) Share of results from subsidiaries, the VIE and subsidiaries of the VIE (5,996,484) 9,579,738 32,238,254 4,674,107 (Loss)/profit before income tax (7,179,742) 7,768,670 31,538,062 4,572,589 Income tax expenses — — — — Net (loss)/income (7,179,742) 7,768,670 31,538,062 4,572,589 Other comprehensive (loss)/income Foreign currency translation difference, net of tax of nil (2,495,958) (1,472,172) 5,860,304 849,664 Unrealized losses on available-for-sale investments, net of tax — — (18,166) (2,634) Total other comprehensive (loss)/income (2,495,958) (1,472,172) 5,842,138 847,030 Comprehensive (loss)/income (9,675,700) 6,296,498 37,380,200 5,419,619 For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net cash generated from/(used in) operating activities 735,231 82,074 (24,202) (3,509) Cash flows from investing activities: Proceeds from sales of short-term investments 6,034,863 5,764,134 — — Cash given to purchase of short-term investments (6,250,248) — — — Cash received from subsidiaries, the VIE and subsidiaries of the VIE, net — — 65,707 9,527 Cash given to subsidiaries, the VIE and subsidiaries of the VIE, net (52,051,474) (5,855,304) — — Net cash (used in)/generated from investing activities (52,266,859) (91,170) 65,707 9,527 Cash flows from financing activities: Proceeds from the private placements 11,063,339 — — — Net proceeds from the follow-on offerings 26,805,438 — — — Net proceeds from the issuance of convertible bonds 13,024,199 — — — Others (6) 318 10,079 1,461 Net cash generated from financing activities 50,892,970 318 10,079 1,461 Exchange rate effect on cash, cash equivalents and restricted cash (16,490) 4,481 7,700 1,116 Net (decrease)/increase in cash, cash equivalents and restricted cash (655,148) (4,297) 59,284 8,595 Cash, cash equivalents and restricted cash at beginning of year 661,714 6,566 2,269 329 Cash, cash equivalents and restricted cash at end of year 6,566 2,269 61,553 8,924 |
Organization - Ownership intere
Organization - Ownership interest (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Hangzhou Aimi or VIE | |
Major subsidiaries, consolidated VIE and the subsidiary of the VIE | |
Percentage of direct or indirect ownership in VIEs | 100% |
Shanghai Xunmeng | |
Major subsidiaries, consolidated VIE and the subsidiary of the VIE | |
Percentage of direct or indirect ownership in VIEs | 100% |
Walnut HK | |
Major subsidiaries, consolidated VIE and the subsidiary of the VIE | |
Percentage of ownership by the Company | 100% |
Hangzhou Weimi or WFOE | |
Major subsidiaries, consolidated VIE and the subsidiary of the VIE | |
Percentage of ownership by the Company | 100% |
Walnut Street (Shanghai) | |
Major subsidiaries, consolidated VIE and the subsidiary of the VIE | |
Percentage of ownership by the Company | 100% |
Xinzhijiang | |
Major subsidiaries, consolidated VIE and the subsidiary of the VIE | |
Percentage of ownership by the Company | 100% |
Shanghai Yucan Information Technology Co., Ltd. | |
Major subsidiaries, consolidated VIE and the subsidiary of the VIE | |
Percentage of ownership by the Company | 100% |
Organization - The VIE agreemen
Organization - The VIE agreements (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
The VIE agreements | |
Registered capital | ¥ 121,000 |
PRC statutory reserves | ¥ 5,889 |
Exclusive Consulting and Services Agreement | |
The VIE agreements | |
Term of agreement (in years) | 10 years |
Automatic extended term of agreement (in years) | 10 years |
Notice period for termination of agreement (in months) | 3 months |
Organization - Financial inform
Organization - Financial information for the VIE (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Current assets | |||||
Cash and cash equivalents | ¥ 34,326,192 | ¥ 6,426,715 | ¥ 22,421,189 | $ 4,976,830 | |
Restricted cash | 57,974,225 | 59,617,256 | 52,422,447 | 8,405,473 | |
Receivables from online payment platforms | 587,696 | 673,737 | 85,208 | ||
Short-term investments | 115,112,554 | 86,516,618 | 16,689,751 | ||
Amounts due from related parties (i) | 6,318,830 | 4,250,155 | 916,144 | ||
Prepayments and other current assets | 2,298,379 | 3,424,687 | 333,235 | ||
Total current assets | 216,617,876 | 160,909,168 | 31,406,641 | ||
Non-current assets | |||||
Property, equipment and software, net | 1,044,847 | 2,203,323 | 151,489 | ||
Intangible asset | 134,002 | 701,220 | 19,428 | ||
Right-of-use assets | 1,416,081 | 938,537 | 205,312 | ||
Deferred tax assets | 1,045,030 | 31,504 | 151,515 | ||
Other non-current assets | 16,862,117 | 16,425,966 | 2,444,777 | ||
Total non-current assets | 20,502,077 | 20,300,550 | 2,972,521 | ||
Total Assets | 237,119,953 | 181,209,718 | 34,379,162 | ||
Current liabilities | |||||
Amounts due to related parties | 1,676,391 | 1,963,007 | 243,054 | ||
Payable to merchants | 63,316,695 | 62,509,714 | 9,180,058 | ||
Accrued expenses and other liabilities | 20,960,723 | 14,085,513 | 3,039,019 | ||
Merchant deposits | 15,058,229 | 13,577,552 | 2,183,238 | ||
Lease liabilities | 602,036 | 427,164 | 87,287 | ||
Total current liabilities | 116,889,480 | 93,729,714 | 16,947,382 | ||
Lease liabilities | 870,782 | 544,263 | 126,252 | ||
Deferred tax liabilities | 13,025 | 31,291 | 1,888 | ||
Total non-current liabilities | 2,459,562 | 12,365,457 | 356,603 | ||
Total liabilities | 119,349,042 | 106,095,171 | 17,303,985 | ||
Consolidated statement of income (loss) | |||||
Revenues | 130,557,589 | $ 18,929,071 | 93,949,939 | 59,491,865 | |
Net income | 31,538,062 | 4,572,589 | 7,768,670 | (7,179,742) | |
Consolidated statement of cashflows | |||||
Net cash generated from operating activities | 48,507,860 | 7,032,979 | 28,783,011 | 28,196,627 | |
Net cash used in investing activities | (22,361,670) | (3,242,137) | (35,562,365) | (38,357,901) | |
Net cash generated from/(used in) financing activities | 10,079 | 1,461 | (1,875,154) | 51,798,996 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 26,256,446 | $ 3,806,827 | (8,799,665) | ¥ 41,497,779 | |
Consolidated VIEs | |||||
Current liabilities | |||||
Amounts due to related parties | 1,671,246 | 1,962,029 | 242,308 | ||
Payable to merchants | 62,006,946 | 61,947,517 | 8,990,162 | ||
Accrued expenses and other liabilities | 11,817,208 | 9,360,166 | 1,713,334 | ||
Merchant deposits | 14,681,913 | 13,360,409 | 2,128,677 | ||
Lease liabilities | 156,776 | 138,667 | 22,730 | ||
Lease liabilities | 290,412 | 305,068 | 42,106 | ||
Deferred tax liabilities | ¥ 0 | ¥ 19,217 | |||
Consolidated VIEs | Consolidated revenues | VIE concentration risk | |||||
Financial information for the VIE | |||||
Concentration (as a percent) | 56.20% | 56.20% | 59.30% | 65.10% | |
Consolidated VIEs | Consolidated total assets | VIE concentration risk | |||||
Financial information for the VIE | |||||
Concentration (as a percent) | 53% | 53% | 48.70% | ||
Consolidated VIEs | Consolidated total liabilities | VIE concentration risk | |||||
Financial information for the VIE | |||||
Concentration (as a percent) | 77.10% | 77.10% | 83.20% | ||
Reportable legal entity | Consolidated VIEs | |||||
Current assets | |||||
Cash and cash equivalents | ¥ 2,725,249 | ¥ 2,430,440 | 395,124 | ||
Restricted cash | 57,955,328 | 59,402,079 | 8,402,733 | ||
Receivables from online payment platforms | 426,193 | 668,953 | 61,792 | ||
Short-term investments | 45,273,907 | 12,306,340 | 6,564,099 | ||
Amounts due from related parties (i) | 6,106,160 | 4,198,391 | 885,310 | ||
Amounts due from Group companies | 34,810,132 | 40,425,872 | 5,046,995 | ||
Prepayments and other current assets | 1,280,559 | 1,330,772 | 185,664 | ||
Total current assets | 148,577,528 | 120,762,847 | 21,541,717 | ||
Non-current assets | |||||
Property, equipment and software, net | 950,273 | 2,116,566 | 137,777 | ||
Intangible asset | 24,155 | 27,163 | 3,502 | ||
Right-of-use assets | 426,429 | 417,455 | 61,826 | ||
Deferred tax assets | 14,556 | 19,908 | 2,110 | ||
Other non-current assets | 10,444,964 | 5,300,938 | 1,514,377 | ||
Total non-current assets | 11,860,377 | 7,882,030 | 1,719,592 | ||
Total Assets | 160,437,905 | 128,644,877 | 23,261,309 | ||
Current liabilities | |||||
Amounts due to related parties | 1,671,246 | 1,962,029 | 242,308 | ||
Amounts due to Group companies | 22,452,033 | 27,978,153 | 3,255,239 | ||
Customer advances and deferred revenues | 1,369,573 | 1,158,738 | 198,569 | ||
Payable to merchants | 62,006,946 | 61,947,517 | 8,990,162 | ||
Accrued expenses and other liabilities | 11,817,208 | 9,360,166 | 1,713,334 | ||
Merchant deposits | 14,681,913 | 13,360,409 | 2,128,677 | ||
Lease liabilities | 156,776 | 138,667 | 22,730 | ||
Total current liabilities | 114,155,695 | 115,905,679 | 16,551,019 | ||
Lease liabilities | 290,412 | 305,068 | 42,106 | ||
Deferred tax liabilities | 19,217 | ||||
Total non-current liabilities | 290,412 | 324,285 | 42,106 | ||
Total liabilities | 114,446,107 | 116,229,964 | $ 16,593,125 | ||
Consolidated statement of income (loss) | |||||
Revenues | 103,631,702 | $ 15,025,184 | 77,877,339 | ¥ 51,351,861 | |
Net income | 33,595,051 | 4,870,825 | 15,169,180 | 2,552,665 | |
Consolidated statement of cashflows | |||||
Net cash generated from operating activities | 25,650,939 | 3,719,037 | 34,365,025 | 29,379,799 | |
Net cash used in investing activities | (43,513,150) | (6,308,814) | (26,828,581) | (11,802,074) | |
Net cash generated from/(used in) financing activities | 16,710,269 | 2,422,761 | (1,445,969) | 7,818,632 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (1,151,942) | (167,016) | 6,090,475 | 25,396,357 | |
Reportable legal entity | Group companies | Consolidated VIEs | |||||
Consolidated statement of income (loss) | |||||
Revenues | 30,199,788 | 4,378,558 | 22,136,726 | 12,602,673 | |
Reportable legal entity | External | Consolidated VIEs | |||||
Consolidated statement of income (loss) | |||||
Revenues | ¥ 73,431,914 | $ 10,646,626 | ¥ 55,740,613 | ¥ 38,749,188 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Convenience translation (Details) | Dec. 31, 2022 |
US$ | |
Convenience translation rate (USD to RMB) | 1 |
RMB | |
Convenience translation rate (USD to RMB) | 6.8972 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, equipment and software (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computer equipment | Minimum | |
Property, equipment and software | |
Estimated useful life | 1 year |
Computer equipment | Maximum | |
Property, equipment and software | |
Estimated useful life | 3 years |
Office equipment | |
Property, equipment and software | |
Estimated useful life | 3 years |
Purchased software | Minimum | |
Property, equipment and software | |
Estimated useful life | 3 years |
Purchased software | Maximum | |
Property, equipment and software | |
Estimated useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Impairment of long-lived assets other than goodwill and Advertising expenditures (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Summary of Significant Accounting Policies | ||||
Impairment of any long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 | |
Advertising expenditures recognized in sales and marketing expenses | ¥ 49,971,418 | $ 7,245,175 | ¥ 41,456,838 | ¥ 39,297,890 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Summary of Significant Accounting Policies | |
Number of reportable segment | 1 |
Concentration of Risks (Details
Concentration of Risks (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk | |||
Percentage of appreciation (depreciation) of US dollar against RMB | 9.20% | (2.30%) | (6.50%) |
Business supplier risk | Total cost | Tencent | Minimum | |||
Concentration Risk | |||
Concentration risk percentage | 10% | 10% | 10% |
Customer risk | Total revenue | Maximum | |||
Concentration Risk | |||
Concentration risk percentage | 10% | 10% | 10% |
Short-term Investments - Classi
Short-term Investments - Classification (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Short-term Investments | |||
Time deposits and held-to-maturity debt securities | ¥ 113,872,353 | $ 16,509,939 | ¥ 86,203,296 |
Trading securities | 6,917 | 1,003 | 313,322 |
Investments in convertible bonds | 1,233,284 | 178,809 | |
Short-term investments, Total | ¥ 115,112,554 | $ 16,689,751 | ¥ 86,516,618 |
Short-term Investments - Additi
Short-term Investments - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Short-term Investments | |||||
Gross unrecognized holding gain of the held-to-maturity debt securities | ¥ 0 | ¥ 0 | |||
Cost of trading securities | 6,828 | 300,000 | $ 990 | ||
Net unrealized gain on debt trading securities | 89 | $ 13 | 13,322 | ||
Interest income related to time deposits and held-to-maturity debt securities | 2,442,413 | 354,117 | 1,093,654 | ¥ 1,175,842 | |
Short-term investments, fair value | 1,233,284 | 1,290,901 | $ 178,809 | ||
Unrealized gains recorded in the consolidated statements of comprehensive income/(loss) | ¥ 88,928 | ||||
Unrealized loss | ¥ 221,640 | $ 32,135 | ¥ 67,065 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Prepayments and Other Current Assets | |||
Prepayments | ¥ 966,439 | $ 140,120 | ¥ 1,392,929 |
VAT recoverable | 326,427 | 47,328 | 670,541 |
Interest receivables | 119,564 | 17,335 | 364,594 |
Rental and other deposits | 86,915 | 12,602 | 111,139 |
Others | 799,034 | 115,850 | 885,484 |
Total | ¥ 2,298,379 | $ 333,235 | ¥ 3,424,687 |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Property, equipment and software | |||
At cost | ¥ 3,622,110 | $ 525,157 | ¥ 3,164,158 |
Less: accumulated depreciation | (2,577,263) | (373,668) | (960,835) |
Property, equipment and software, net | 1,044,847 | 151,489 | 2,203,323 |
Computer equipment, office equipment and purchased software | |||
Property, equipment and software | |||
At cost | 3,591,861 | 520,771 | 3,135,385 |
Leasehold improvement | |||
Property, equipment and software | |||
At cost | ¥ 30,249 | $ 4,386 | ¥ 28,773 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Depreciation expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Property, Equipment and Software, Net | ||||
Depreciation expenses | ¥ 1,615,551 | $ 234,233 | ¥ 911,964 | ¥ 27,999 |
Intangible Assets (Details)
Intangible Assets (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Intangible Asset | |||||
Beginning balance | ¥ 701,220 | $ 101,667 | ¥ 1,276,751 | ||
Addition | 30,073 | ||||
Amortization | (608,618) | (88,241) | (583,416) | ¥ (623,524) | |
Foreign currency translation difference | 41,400 | 6,002 | (22,188) | ||
Ending balance | 134,002 | $ 19,428 | 701,220 | 1,276,751 | |
Impairment charges | ¥ 0 | ¥ 0 | ¥ 0 | ||
Convertible preferred shares | |||||
Intangible Asset | |||||
Addition | ¥ 2,852,000 |
Intangible Assets - Estimated a
Intangible Assets - Estimated annual amortization expense (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Intangible Assets | ||
2023 | ¥ 112,854 | $ 16,362 |
2024 | 3,007 | 436 |
2025 | 3,007 | 436 |
2026 | 3,007 | 436 |
2027 and after | ¥ 12,127 | $ 1,758 |
Leases - Maturity analysis of t
Leases - Maturity analysis of the Company's (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Future minimum lease payments | ||
2023 | ¥ 650,617 | $ 94,331 |
2024 | 497,166 | 72,082 |
2025 | 274,728 | 39,832 |
2026 | 67,483 | 9,784 |
2027 and after | 75,197 | 10,903 |
Total undiscounted cash flows | 1,565,191 | 226,932 |
Less: imputed interest | (92,373) | (13,393) |
Present value of lease liabilities | ¥ 1,472,818 | $ 213,539 |
Leases - Other supplemental (De
Leases - Other supplemental (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Leases | ||||
Cash payments for operating leases | ¥ 534,784 | $ 77,536 | ¥ 388,144 | ¥ 166,967 |
ROU assets obtained in exchange for new operating lease liabilities | ¥ 1,068,063 | $ 154,855 | ¥ 704,142 | ¥ 265,821 |
Leases - Additional Information
Leases - 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 (¥) | |
Leases | ||||
Operating lease costs | ¥ 557,477 | $ 80,827 | ¥ 385,377 | ¥ 177,976 |
Short-term lease | 174,402 | $ 25,286 | 141,507 | 31,394 |
Leasing cost other than operating lease costs and short-term lease costs | ¥ 0 | ¥ 0 | ¥ 0 | |
Operating leases | 0 | 0 | ||
Weighted average remaining lease terms of the right-of-use assets | 2 years 10 months 13 days | 2 years 10 months 13 days | 2 years 8 months 26 days | 3 years 4 months 20 days |
Weighted average incremental borrowing rate | 4.05% | 4.05% | 4.38% | 4.90% |
Other Non-Current Asset - Addit
Other Non-Current Asset - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Other Non-current Assets | |||||
Carrying amount for the investments, net of allowance for credit losses | ¥ 11,040,283 | ¥ 13,008,899 | $ 1,600,691 | ||
Allowance for credit losses | 12,873 | 14,378 | 1,866 | ||
Gross unrecognized holding gain or loss on the investments | 0 | 0 | |||
Interest income recorded on time deposits | 151,299 | $ 21,936 | 83,728 | ¥ 66,602 | |
Allowance for credit loss | 0 | ||||
Investment in convertible bonds measured at fair value | 1,290,901 | ||||
Impairment on investments | 0 | 0 | ¥ 0 | ||
Limited partnership funds | |||||
Other Non-current Assets | |||||
Carrying amount for the investments | 2,049,616 | 1,968,156 | $ 297,166 | ||
Equity method investments | ¥ 0 | ¥ 0 |
Other Non-Current Asset - Matur
Other Non-Current Asset - Maturity debt securities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other Non-Current Asset | |||
Total | ¥ 11,040,283 | $ 1,600,691 | ¥ 13,008,899 |
Debt Securities Contractual Maturity | |||
Other Non-Current Asset | |||
Due in 1 year through 2 years | 5,536,768 | 802,756 | 8,936,424 |
Due in 2 years through 3 years | 5,503,515 | 797,935 | 4,072,475 |
Total | ¥ 11,040,283 | $ 1,600,691 | ¥ 13,008,899 |
Other Non-Current Asset - Mat_2
Other Non-Current Asset - Maturity date of the investments (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Other Non-current Assets | ||
Amortized Cost | ¥ 3,596,846 | |
Gross Unrealized Gains | 4,626 | |
Gross Unrealized Losses | (25,998) | |
Fair Value (Net Carrying Amount) | ¥ 3,575,474 | $ 518,395 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accrued Expenses and Other Liabilities | |||
Accrued advertising and marketing expenses | ¥ 5,850,125 | $ 848,188 | ¥ 3,652,648 |
VAT and other tax payable | 6,970,790 | 1,010,670 | 5,734,281 |
Payroll payable | 2,364,723 | 342,853 | 1,949,173 |
Accounts payable | 3,978,818 | 576,874 | 1,951,681 |
Others | 1,796,267 | 260,434 | 797,730 |
Total | ¥ 20,960,723 | $ 3,039,019 | ¥ 14,085,513 |
Convertible Bonds - Accounting
Convertible Bonds - Accounting Convertible Bonds (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2020 USD ($) D $ / shares | Sep. 30, 2020 USD ($) $ / shares | Dec. 31, 2022 USD ($) D $ / shares shares | Dec. 31, 2022 CNY (¥) D ¥ / shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Apr. 30, 2020 shares | Sep. 30, 2019 USD ($) | |
Convertible Bonds | |||||||||
Ordinary shares, par value | $ / shares | $ 0.000005 | ||||||||
Interest expense | $ 183,958 | ¥ 1,268,792 | |||||||
Basic earnings per share | (per share) | $ 0.04 | ¥ 0.25 | |||||||
Diluted earnings per share | (per share) | $ 0.02 | ¥ 0.17 | |||||||
2024 Convertible Bonds | |||||||||
Convertible Bonds | |||||||||
Principal amount | $ 226,252 | $ 1,000,000 | |||||||
Coupon Rate | 0% | ||||||||
Debt instrument purchasers over-allotment option | $ 125,000 | ||||||||
Principal amount per conversion rate | $ 1,000 | ||||||||
Initial conversion rate (ADS per US$1,000 principal amount) | 23.4680 | ||||||||
Initial conversion price (per ADS) | $ / shares | $ 42.61 | ||||||||
Effective interest rate | 0.53% | 0.53% | |||||||
Gross proceeds from the issuance of the Notes | $ 1,000,000 | ||||||||
Debt issuance costs | $ 15,680 | ||||||||
Principal amount of the liability | $ 656,771 | ||||||||
Principal amount over a remaining period | 11 months 1 day | 11 months 1 day | |||||||
Ordinary shares, issued | shares | 62,732,708 | 62,732,708 | |||||||
Converted value | $ 431,757 | ||||||||
2024 Convertible Bonds | Redemption one | |||||||||
Convertible Bonds | |||||||||
Ordinary shares, par value | $ / shares | $ 0.000005 | ||||||||
Trading days | D | 20 | 20 | |||||||
Consecutive trading day | D | 30 | 30 | |||||||
Percentage of conversion price | 130% | 130% | |||||||
2024 Convertible Bonds | Redemption two | |||||||||
Convertible Bonds | |||||||||
Principal amount | $ 1,000 | ||||||||
Trading days | D | 5 | 5 | |||||||
Consecutive trading day | D | 10 | 10 | |||||||
Percentage of conversion price | 98% | 98% | |||||||
2025 Convertible Bonds | |||||||||
Convertible Bonds | |||||||||
Principal amount | $ 2,000,000 | ||||||||
Coupon Rate | 0% | ||||||||
Debt instrument purchasers over-allotment option | $ 250,000 | ||||||||
Principal amount per conversion rate | $ 1,000 | ||||||||
Initial conversion rate (ADS per US$1,000 principal amount) | 5.2459 | ||||||||
Initial conversion price (per ADS) | $ / shares | $ 190.63 | ||||||||
Effective interest rate | 0.34% | 0.34% | |||||||
Gross proceeds from the issuance of the Notes | $ 2,000,000 | ||||||||
Debt issuance costs | $ 20,607 | ||||||||
2025 Convertible Bonds | Redemption one | |||||||||
Convertible Bonds | |||||||||
Ordinary shares, par value | $ / shares | $ 0.000005 | ||||||||
Trading days | D | 20 | 20 | 20 | ||||||
Consecutive trading day | D | 30 | 30 | 30 | ||||||
Percentage of conversion price | 130% | 130% | 130% | ||||||
2025 Convertible Bonds | Redemption two | |||||||||
Convertible Bonds | |||||||||
Principal amount | $ 1,000 | ||||||||
Trading days | D | 5 | ||||||||
Consecutive trading day | D | 10 | ||||||||
Percentage of conversion price | 98% | ||||||||
Accounting for Convertible Bonds | |||||||||
Convertible Bonds | |||||||||
Principal amount of the liability | $ 2,226,252 | 2,226,253 | |||||||
Unamortized debt discount | 6,239 | $ 377,216 | |||||||
Net carrying amount of the liability | ¥ | ¥ 11,788,907 | ||||||||
Carrying amount of the equity component | ¥ | ¥ 15,461,506 | ||||||||
Amortization of the discount | $ 7,489 | ¥ 51,655 | ¥ 1,221,846 | ||||||
Class A ordinary shares | |||||||||
Convertible Bonds | |||||||||
Ordinary shares, par value | $ / shares | $ 0.000005 | $ 0.000005 | |||||||
Ordinary shares, issued | shares | 5,278,348,396 | 5,278,348,396 | 5,057,542,676 | 135,426,300 |
Convertible Bonds - Cumulative
Convertible Bonds - Cumulative effect of change in balance sheet (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Equity | ||||
Additional paid-in capital | ¥ 99,250,468 | $ 14,389,965 | ¥ 95,340,819 | |
Accumulated other comprehensive (loss)/income | 3,322,238 | 481,679 | (2,519,900) | |
Accumulated deficit | ¥ 15,193,035 | $ 2,202,783 | (17,706,533) | |
ASU 2020-06 | ||||
Liabilities | ||||
Convertible bonds | 11,788,907 | |||
Equity | ||||
Additional paid-in capital | 95,340,819 | |||
Accumulated other comprehensive (loss)/income | (2,519,900) | |||
Accumulated deficit | ¥ (17,706,533) | |||
Adjustment | ASU 2020-06 | ||||
Liabilities | ||||
Convertible bonds | ¥ 2,316,324 | |||
Equity | ||||
Additional paid-in capital | (3,818,926) | |||
Accumulated other comprehensive (loss)/income | 136,096 | |||
Accumulated deficit | 1,366,506 | |||
Balance at January 1, 2022 | ASU 2020-06 | ||||
Liabilities | ||||
Convertible bonds | 14,105,231 | |||
Equity | ||||
Additional paid-in capital | 91,521,893 | |||
Accumulated other comprehensive (loss)/income | (2,383,804) | |||
Accumulated deficit | ¥ (16,340,027) |
Fair Value Measurement - Fair v
Fair Value Measurement - Fair value hierarchy (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Non-recurring | ||
Fair Value Measurements | ||
Liabilities fair value | ¥ 0 | ¥ 0 |
Assets fair value | 0 | 0 |
Impairment charge | 0 | 0 |
Level 1 | Recurring | ||
Fair Value Measurements | ||
Assets fair value | 7,798,545 | |
Level 1 | Recurring | Money Market Funds | ||
Fair Value Measurements | ||
Assets fair value | 7,791,628 | |
Level 1 | Recurring | Trading securities | ||
Fair Value Measurements | ||
Assets fair value | 6,917 | |
Level 2 | Recurring | ||
Fair Value Measurements | ||
Assets fair value | 3,575,474 | 313,322 |
Level 2 | Recurring | Trading securities | ||
Fair Value Measurements | ||
Assets fair value | 313,322 | |
Level 2 | Recurring | Debt Securities, Available for Sale | ||
Fair Value Measurements | ||
Assets fair value | 3,575,474 | |
Level 3 | Recurring | ||
Fair Value Measurements | ||
Assets fair value | 1,233,284 | 1,290,901 |
Level 3 | Recurring | Investment in convertible bonds | ||
Fair Value Measurements | ||
Assets fair value | ¥ 1,233,284 | ¥ 1,290,901 |
Fair Value Measurement - Reconc
Fair Value Measurement - Reconciliations of assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement | ||
Balance at Beginning | ¥ 1,290,901 | ¥ 1,388,916 |
Net unrealized fair value | (221,640) | (67,065) |
Foreign currency translation adjustments | 164,023 | (30,950) |
Balance at Ending | ¥ 1,233,284 | ¥ 1,290,901 |
Fair Value Measurement - Fair_2
Fair Value Measurement - Fair value measurements (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Fair Value Measurements | |||
Time deposits and held-to-maturity debt securities | ¥ 113,872,353 | $ 16,509,939 | ¥ 86,203,296 |
Convertible bonds, current portion | 13,885,751 | $ 2,013,245 | |
Level 2 | |||
Fair Value Measurements | |||
Time deposits and held-to-maturity debt securities | 113,872,353 | 86,203,296 | |
Time deposits and held-to-maturity debt securities | 11,040,283 | 13,008,899 | |
Convertible bonds, current portion | 13,093,448 | ||
Convertible bonds | ¥ 3,056,964 | ¥ 13,690,953 |
Ordinary Shares (Details)
Ordinary Shares (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2021 shares | Dec. 31, 2020 USD ($) shares | Nov. 30, 2020 USD ($) shares | Jun. 30, 2020 shares | Apr. 30, 2020 USD ($) shares | Feb. 28, 2019 USD ($) shares | Dec. 31, 2022 Vote shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2021 shares | |
Proceeds from private placements | ¥ | ¥ 11,063,339 | ||||||||
Follow-on offering | |||||||||
Total Proceeds, net of issuance cost | $ | $ 1,181,209 | ||||||||
ADSs | Follow-on offering | |||||||||
Number of ordinary shares issued | 33,005,000 | 48,435,000 | |||||||
Class A ordinary shares | |||||||||
Number of votes entitled for each share | Vote | 1 | ||||||||
Ordinary shares, outstanding | 5,278,348,396 | 5,057,542,676 | |||||||
Ordinary shares, issued | 135,426,300 | 5,278,348,396 | 5,057,542,676 | ||||||
Proceeds from private placements | $ | $ 500,000 | $ 1,100,000 | |||||||
Stock split ratio of Convertible Preferred Shares | 1 | ||||||||
Class A ordinary shares | Private Placement | |||||||||
Ordinary shares, issued | 15,384,612 | 15,384,612 | |||||||
Class A ordinary shares | Follow-on offering | |||||||||
Number of ordinary shares issued | 132,020,000 | 193,740,000 | |||||||
Total Proceeds, net of issuance cost | $ | $ 4,074,642 | ||||||||
Class B ordinary shares | |||||||||
Number of votes entitled for each share | Vote | 10 | ||||||||
Ordinary shares, outstanding | 0 | 0 | |||||||
Number of shares converted | 1,409,744,080 | 664,703,620 | |||||||
Stock split ratio of Convertible Preferred Shares | 1 |
Accumulated other comprehensi_3
Accumulated other comprehensive (loss)/income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | ¥ 75,114,547 | ¥ 60,175,888 | ¥ 24,646,866 | |
Balance at end of the year | 117,770,911 | $ 17,075,177 | 75,114,547 | 60,175,888 |
Cumulative effect of change in accounting principle | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | (2,316,324) | |||
Balance at end of the year | (2,316,324) | |||
Balance | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | 72,798,223 | |||
Balance at end of the year | 72,798,223 | |||
Accumulated other comprehensive income | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | (2,519,900) | (1,047,728) | 1,448,230 | |
Other comprehensive loss | 5,842,138 | (1,472,172) | (2,495,958) | |
Balance at end of the year | 3,322,238 | 481,679 | (2,519,900) | (1,047,728) |
Accumulated other comprehensive income | Cumulative effect of change in accounting principle | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | 136,096 | |||
Balance at end of the year | 136,096 | |||
Accumulated other comprehensive income | Balance | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | (2,383,804) | |||
Balance at end of the year | (2,383,804) | |||
Foreign currency translation difference | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | (2,519,900) | (1,047,728) | 1,448,230 | |
Other comprehensive loss | 5,724,208 | (1,472,172) | (2,495,958) | |
Balance at end of the year | 3,340,404 | 484,313 | (2,519,900) | ¥ (1,047,728) |
Foreign currency translation difference | Cumulative effect of change in accounting principle | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | 136,096 | |||
Balance at end of the year | 136,096 | |||
Foreign currency translation difference | Balance | ||||
Accumulated other comprehensive (loss)/income | ||||
Balance at beginning of the year | (2,383,804) | |||
Balance at end of the year | ¥ (2,383,804) | |||
Net change in unrealized losses on available-for- sale debt securities | ||||
Accumulated other comprehensive (loss)/income | ||||
Other comprehensive loss | (18,166) | |||
Balance at end of the year | ¥ (18,166) | $ (2,634) |
Revenues (Details)
Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Revenues | ||||
Revenues | ¥ 130,557,589 | $ 18,929,071 | ¥ 93,949,939 | ¥ 59,491,865 |
Online marketing services and others | ||||
Revenues | ||||
Revenues | 102,721,924 | 14,893,279 | 72,563,402 | 47,953,779 |
Transaction services | ||||
Revenues | ||||
Revenues | 27,626,494 | 4,005,465 | 14,140,449 | 5,787,415 |
Merchandise sales | ||||
Revenues | ||||
Revenues | ¥ 209,171 | $ 30,327 | ¥ 7,246,088 | ¥ 5,750,671 |
Revenues- Contract balances (De
Revenues- Contract balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Revenues | |||
Customer advances and deferred revenues | ¥ 1,389,655 | $ 201,481 | ¥ 1,166,764 |
Payable to merchants | 637,240 | 92,391 | 319,329 |
Customer liability | ¥ 1,356,566 | $ 196,684 | ¥ 2,487,806 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary (Details) - shares | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Jul. 31, 2018 | Dec. 31, 2022 | |
2015 Plan and the 2018 Plan | Stock Options | |||
Share-Based Compensation | |||
Required Service period (in years) | 4 years | ||
Annual vesting percentage | 25% | ||
Restricted period of holding after exercise (in years) | 3 years | ||
Additional implicit service period (in years) | 3 years | ||
Vesting period (in years) | 7 years | ||
2015 Plan | Stock Options | |||
Share-Based Compensation | |||
Number of shares authorized | 581,972,860 | ||
Term of the options (in years) | 20 years | ||
2018 Plan | RSU | |||
Share-Based Compensation | |||
Number of shares authorized | 363,130,400 | ||
Term of the options (in years) | 4 years | ||
Percentage of annual increase on shares issued | 3% | 1% | |
Annual vesting percentage | 25% | ||
Vesting percentage on 2nd anniversary of the grant date | 50% | ||
Vesting percentage on 3rd and 4th anniversary of the grant date | 25% |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Group's option activities (Details) - 2015 Plan and the 2018 Plan $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 $ / shares | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) shares | |
Number of share options | |||||||
Outstanding at beginning of the year (in shares) | shares | 720,003,536 | 720,003,536 | |||||
Granted (in shares) | shares | 23,652,900 | 23,652,900 | |||||
Forfeited (in shares) | shares | (6,342,000) | (6,342,000) | |||||
Exercised (in shares) | shares | (225,682,548) | (225,682,548) | |||||
Outstanding at end of the year (in shares) | shares | 511,631,888 | 511,631,888 | 720,003,536 | 720,003,536 | |||
Vested and expected to vest at end of the year (in shares) | shares | 511,631,888 | 511,631,888 | |||||
Exercisable at end of the year (in shares) | shares | 442,371,733 | 442,371,733 | |||||
Weighted average exercise price | |||||||
Outstanding at beginning of the year (in dollars per share) | $ 0.0065 | ||||||
Granted (in dollars per share) | 0.0065 | ||||||
Forfeited (in dollars per share) | 0.0065 | ||||||
Exercised (in dollars per share) | 0.0065 | ||||||
Outstanding at end of the year (in dollars per share) | 0.0065 | $ 0.0065 | |||||
Vested and expected to vest at end of the year (in dollars per share) | 0.0065 | ||||||
Exercisable at end of the year (in dollars per share) | 0.0065 | ||||||
Weighted average grant date fair value | |||||||
Outstanding at beginning of the year | 4.0216 | ||||||
Granted | 13.4311 | 32.0457 | $ 14.5801 | ||||
Forfeited | 8.7834 | ||||||
Exercised | 2.1461 | ||||||
Outstanding at end of the year | 5.2248 | $ 4.0216 | |||||
Vested and expected to vest at end of the year | 5.2248 | ||||||
Exercisable at end of the year | $ 3.5480 | ||||||
Aggregate intrinsic value | |||||||
Outstanding at beginning of the year (in dollars) | $ | $ 10,489,372 | ||||||
Exercised (in dollars) | 4,716,448 | ¥ 32,530,282 | ¥ 1,252,115 | ¥ 0 | |||
Outstanding at end of the year (in dollars) | $ | 10,427,570 | $ 10,489,372 | |||||
Vested and expected to vest at end of the year (in dollars) | $ | 10,427,570 | ||||||
Exercisable at end of the year (in dollars) | $ | $ 9,015,978 | ||||||
Weighted average remaining contractual term | |||||||
Outstanding (in years) | 15 years 5 months 8 days | 15 years 5 months 8 days | 6 years 25 days | 6 years 25 days | |||
Vested and expected to vest at end of the year (in years) | 15 years 5 months 8 days | 15 years 5 months 8 days | |||||
Exercisable at end of the year (in years) | 15 years 10 days | 15 years 10 days | |||||
Fair value of vested options | $ 691,661 | ¥ 4,770,523 | ¥ 3,949,471 | ¥ 3,237,924 | |||
Unrecognized share-based compensation expense relating to unvested options | $ 1,243,924 | ¥ 8,579,593 | |||||
Weighted-average period for recognition of share-based compensation expense relating to unvested options | 2 years 5 months 8 days | 2 years 5 months 8 days |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions to estimate the fair value of options (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation | |||
Risk-free interest rate, minimum (in percent) | 1.52% | 1.31% | 0.62% |
Risk-free interest rate, maximum (in percent) | 4.08% | 1.69% | 1.13% |
Expected volatility, minimum (in percent) | 46.29% | 46.28% | 43.89% |
Expected volatility, maximum (in percent) | 50.26% | 46.87% | 46.68% |
Expected dividend yield (in percent) | 0% | 0% | 0% |
Exercise multiple | 2.80 | 2.80 | 2.80 |
Post-vesting forfeit rate | 0% | 0% | 0% |
Fair value of underlying Ordinary Share, minimum (in dollars per share) | $ 10.6625 | $ 22.0375 | $ 8.9450 |
Fair value of underlying Ordinary Share, maximum (in dollars per share) | 17.8550 | 46.5375 | 34.1350 |
Fair value of share option, minimum | 10.6560 | 22.0310 | 8.9385 |
Fair value of share option, maximum | $ 17.8485 | $ 46.5310 | $ 34.1285 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of RSU activities (Details) - 2018 Plan - RSU $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 $ / shares | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Number of RSUs | |||||||
Outstanding at beginning of the year (in shares) | shares | 41,518,464 | 41,518,464 | |||||
Granted (in shares) | shares | 59,628,020 | 59,628,020 | |||||
Vested | shares | (15,453,196) | (15,453,196) | |||||
Forfeited (in shares) | shares | (3,708,800) | (3,708,800) | |||||
Outstanding at end of the year (in shares) | shares | 81,984,488 | 81,984,488 | 41,518,464 | ||||
Weighted average grand date fair value | |||||||
Outstanding at beginning of the year | $ / shares | $ 19.0563 | ||||||
Granted | $ / shares | 13.0177 | $ 32.4843 | $ 16.6133 | ||||
Vested | $ / shares | 14.7922 | ||||||
Forfeited | $ / shares | 18.1311 | ||||||
Outstanding at end of the year | $ / shares | $ 15.5100 | $ 19.0563 | |||||
Restricted share units vested | ¥ 1,539,004 | $ 223,135 | ¥ 675,837 | ¥ 178,855 | |||
Unrecognized share-based compensation expenses | ¥ 4,459,730 | $ 646,600 | |||||
Weighted-average period for recognition of share-based compensation expense relating to unvested options | 2 years 9 months 10 days | 2 years 9 months 10 days |
Share-Based Compensation - Reco
Share-Based Compensation - Recognized share-based compensation expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Recognized share-based compensation expenses | ||||
Share-based compensation expense recognized | ¥ 7,718,365 | $ 1,119,058 | ¥ 4,774,730 | ¥ 3,613,043 |
Costs of revenues | ||||
Recognized share-based compensation expenses | ||||
Share-based compensation expense recognized | 33,788 | 4,899 | 26,624 | 32,291 |
Sales and marketing expenses | ||||
Recognized share-based compensation expenses | ||||
Share-based compensation expense recognized | 2,158,676 | 312,979 | 1,612,219 | 1,093,547 |
General and administrative expenses | ||||
Recognized share-based compensation expenses | ||||
Share-based compensation expense recognized | 3,004,327 | 435,586 | 792,421 | 966,985 |
Research and development expenses | ||||
Recognized share-based compensation expenses | ||||
Share-based compensation expense recognized | ¥ 2,521,574 | $ 365,594 | ¥ 2,343,466 | ¥ 1,520,220 |
Income Taxes - Tax rates (Detai
Income Taxes - Tax rates (Details) | 12 Months Ended | |||
Apr. 30, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||||
Statutory tax rate (as a percent) | 25% | 25% | 25% | |
Hong Kong | ||||
Income Taxes | ||||
Statutory tax rate (as a percent) | 16.50% | |||
Withholding tax rate (as a percent) | 0% | |||
PRC | ||||
Income Taxes | ||||
Statutory tax rate (as a percent) | 25% | |||
Withholding tax rate (as a percent) | 10% | |||
Xinzhijiang | PRC | ||||
Income Taxes | ||||
Preferential tax rate (as a percent) | 15% | |||
Shanghai Xunmeng | PRC | ||||
Income Taxes | ||||
Preferential tax rate (as a percent) | 15% | |||
Walnut Shanghai | PRC | ||||
Income Taxes | ||||
Preferential tax rate (as a percent) | 15% |
Income Taxes - Group's loss bef
Income Taxes - Group's loss before income taxes (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 Taxes | ||||
(Loss)/ profit before income tax expense | ¥ 36,263,729 | $ 5,257,746 | ¥ 9,702,255 | ¥ (7,179,742) |
Non-PRC | ||||
Income Taxes | ||||
(Loss)/ profit before income tax expense | (7,839,712) | (1,136,651) | (5,633,012) | (3,763,962) |
PRC | ||||
Income Taxes | ||||
(Loss)/ profit before income tax expense | ¥ 44,103,441 | $ 6,394,397 | ¥ 15,335,267 | ¥ (3,415,780) |
Income Taxes - Schedule of inco
Income Taxes - Schedule of income taxes (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 Taxes | ||||
Current income tax | ¥ 5,754,253 | $ 834,288 | ¥ 1,933,798 | ¥ 0 |
Deferred income tax benefit | (1,028,586) | (149,131) | (213) | 0 |
Income tax expenses | ¥ 4,725,667 | $ 685,157 | ¥ 1,933,585 | ¥ 0 |
Income Taxes - Components and r
Income Taxes - Components and reconciliation of the income tax 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 (¥) | |
Reconciliations of the income tax expenses | ||||
(Loss)/ profit before income tax expense | ¥ 36,263,729 | $ 5,257,746 | ¥ 9,702,255 | ¥ (7,179,742) |
PRC statutory tax rate (in percent) | 25% | 25% | 25% | 25% |
Income tax (benefits)/ expense at PRC statutory tax rate | ¥ 9,065,932 | $ 1,314,437 | ¥ 2,425,564 | ¥ (1,794,935) |
International tax rate differential | 2,013,305 | 291,902 | 1,522,480 | 1,077,383 |
Preferential tax rate differential | (4,442,822) | (644,149) | (1,439,100) | 57,483 |
Non-deductible expenses | 361,045 | 52,346 | 167,098 | 108 |
Non-taxable income | (122,067) | (17,698) | (139,417) | (164,120) |
Deferred tax items tax rate differential | 527,035 | 76,413 | 51,493 | (110,821) |
Additional deduction of research and development expenses | (444,071) | (64,384) | (223,591) | (124,858) |
Change in valuation allowance | (2,232,690) | (323,710) | (430,942) | 1,059,760 |
Income tax expenses | ¥ 4,725,667 | $ 685,157 | ¥ 1,933,585 | ¥ 0 |
Income Taxes - Components of de
Income Taxes - Components of deferred tax assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | 36 Months Ended | |||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |
Deferred tax assets | |||||||
Tax losses carried forward | ¥ 1,472,388 | $ 213,476 | ¥ 1,432,514 | ||||
Carryforwards of non-deductible advertising expenses and donations | 79,608 | 11,542 | 1,331,067 | ||||
Others | 58,994 | 8,553 | 31,926 | ||||
Less: valuation allowance | (531,313) | (77,033) | (2,764,003) | ||||
Total deferred tax assets | 1,079,677 | 156,538 | 31,504 | ||||
Deferred tax liabilities | |||||||
Total deferred tax liabilities | (47,672) | (6,911) | (31,291) | ||||
Unrecognized tax benefit on interest expense | $ 0 | $ 0 | $ 0 | ||||
Unrecognized tax benefit on accumulated interest expense | 0 | $ 0 | |||||
PRC | |||||||
Deferred tax liabilities | |||||||
Taxable losses | 5,744,189 | $ 832,829 | ¥ 5,881,960 | ||||
Accrued withholding tax on earnings of subsidiaries | ¥ | ¥ 0 | ||||||
Minimum | |||||||
Deferred tax liabilities | |||||||
Period for extension | 5 years | ||||||
Maximum | |||||||
Deferred tax liabilities | |||||||
Period for extension | 10 years |
Related Party Transactions - Si
Related Party Transactions - Significant related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Related Party Transactions | ||||
Services provided to related party | ¥ 10,765 | $ 1,561 | ¥ 0 | ¥ 0 |
Tencent Group | ||||
Related Party Transactions | ||||
Services received from related party | 7,061,132 | 1,023,769 | 8,416,635 | 10,541,479 |
Tencent Group | Computer equipment | ||||
Related Party Transactions | ||||
Services received from related party | 1,833,495 | |||
Shanghai Fufeitong | ||||
Related Party Transactions | ||||
Services received from related party | 653,972 | 94,817 | ¥ 211,414 | ¥ 45,364 |
Services provided to related party | ¥ 10,765 | $ 1,561 |
Related Party Transactions - Re
Related Party Transactions - Related party balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Related Party Transactions | |||
Amounts due from related parties (i) | ¥ 6,318,830 | $ 916,144 | ¥ 4,250,155 |
Amounts due to related parties | 1,676,391 | 243,054 | 1,963,007 |
Tencent Group | |||
Related Party Transactions | |||
Amounts due from related parties (i) | 2,763,924 | 400,731 | 2,803,265 |
Amounts due to related parties | 1,539,694 | 223,235 | 1,916,482 |
Ningbo Hexin Equity Investment Partnership | |||
Related Party Transactions | |||
Amounts due from related parties (i) | 697,632 | 101,147 | 697,632 |
Shanghai Fufeitong | |||
Related Party Transactions | |||
Amounts due from related parties (i) | 2,856,856 | 414,205 | 748,875 |
Amounts due to related parties | ¥ 136,697 | $ 19,819 | ¥ 46,525 |
Earnings (Loss) Per Share (Deta
Earnings (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)/income | ¥ 31,538,062 | $ 4,572,589 | ¥ 7,768,670 | ¥ (7,179,742) |
Net (loss)/income attributable to ordinary shareholders | 31,538,062 | 4,572,589 | 7,768,670 | (7,179,742) |
Conversion of convertible bonds to Class A ordinary shares | 51,655 | 7,489 | ||
Net (loss)/income attributable to ordinary shareholders - diluted | ¥ 31,589,717 | $ 4,580,078 | ¥ 7,768,670 | ¥ (7,179,742) |
Denominator (in thousands of shares): | ||||
Weighted-average number of ordinary shares outstanding - basic | 5,057,540 | 5,057,540 | 5,012,651 | 4,768,343 |
Adjustments for dilutive RSUs and share options | 640,545 | 640,545 | 701,113 | |
Dilution effect arising from convertible bonds | 63,206,000 | 63,206,000 | ||
Weighted-average number of ordinary shares outstanding - diluted | 5,761,291 | 5,761,291 | 5,713,764 | 4,768,343 |
Basic net income (loss) per share | (per share) | ¥ 6.24 | $ 0.90 | ¥ 1.55 | ¥ (1.51) |
Diluted net income (loss) per share | (per share) | ¥ 5.48 | $ 0.79 | ¥ 1.36 | ¥ (1.51) |
Shares issued to depository bank (in shares) | 273,455,720 | 273,455,720 | ||
Shares settled | 271,049,824 | 271,049,824 | ||
Escrow Shares Settled | 2,405,896 | 2,405,896 | ||
Common share | ||||
Denominator (in thousands of shares): | ||||
Shares issued to depository bank (in shares) | 220,805,720 | 220,805,720 | 40,000,000 | 12,050,000 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - 12 months ended Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Restricted Net Assets | ||
Minimum percentage of after tax profit to be allocated to general reserve | 10% | |
Limit of general reserve fund as a percentage of registered capital, after which allocations to general reserve fund are no longer required | 50% | |
Restricted net assets of Company's PRC subsidiaries, the VIE and subsidiaries of the VIE | ¥ 57,000,116 | $ 8,264,240 |
Mainland China Employee Contr_2
Mainland China Employee Contribution Plan (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Mainland China Employee Contribution Plan | ||||
Total expenses incurred for government statutory employee benefit plans | ¥ 1,131,829 | $ 164,100 | ¥ 829,440 | ¥ 277,429 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments and Contingencies. | ||
Total investment commitments | ¥ 80,000 | $ 11,599 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Future minimum lease payments | ||
2022 | ¥ 650,617 | $ 94,331 |
2023 | 497,166 | 72,082 |
2024 | 274,728 | 39,832 |
2025 | 67,483 | 9,784 |
Total undiscounted cash flows | ¥ 1,565,191 | $ 226,932 |
Condensed Financial Informati_3
Condensed Financial Information of the Company - Balance sheets (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 CNY (¥) | Apr. 30, 2020 shares | Dec. 31, 2019 CNY (¥) |
Current assets | |||||||
Cash and cash equivalents | ¥ 34,326,192 | $ 4,976,830 | ¥ 6,426,715 | ¥ 22,421,189 | |||
Short-term investments | 115,112,554 | 16,689,751 | 86,516,618 | ||||
Prepayments and other current assets | 2,298,379 | 333,235 | 3,424,687 | ||||
Total current assets | 216,617,876 | 31,406,641 | 160,909,168 | ||||
Non-current assets | |||||||
Intangible assets | 134,002 | 19,428 | 701,220 | ||||
Total non-current assets | 20,502,077 | 2,972,521 | 20,300,550 | ||||
Total Assets | 237,119,953 | 34,379,162 | 181,209,718 | ||||
Current liabilities | |||||||
Accrued expenses and other liabilities | 20,960,723 | 3,039,019 | 14,085,513 | ||||
Convertible bonds, current portion | 13,885,751 | 2,013,245 | |||||
Total current liabilities | 116,889,480 | 16,947,382 | 93,729,714 | ||||
Other non-current liabilities | ¥ | 996 | ||||||
Total non-current liabilities | 2,459,562 | 356,603 | 12,365,457 | ||||
Total liabilities | 119,349,042 | $ 17,303,985 | 106,095,171 | ||||
Shareholders' equity | |||||||
Ordinary shares, par value | $ / shares | $ 0.000005 | ||||||
Equity | |||||||
Additional paid-in capital | 99,250,468 | $ 14,389,965 | 95,340,819 | ||||
Statutory reserves | 5,000 | 725 | |||||
Accumulated other comprehensive income | 3,322,238 | 481,679 | (2,519,900) | ||||
(Accumulated deficits)/retained earnings | 15,193,035 | 2,202,783 | (17,706,533) | ||||
Total shareholders' equity | 117,770,911 | 17,075,177 | 75,114,547 | ¥ 60,175,888 | ¥ 24,646,866 | ||
Total liabilities and shareholders' equity | ¥ 237,119,953 | $ 34,379,162 | ¥ 181,209,718 | ||||
Class A ordinary shares | |||||||
Shareholders' equity | |||||||
Ordinary shares, par value | $ / shares | $ 0.000005 | $ 0.000005 | |||||
Ordinary shares, shares authorized | 77,300,000,000 | 77,300,000,000 | 77,300,000,000 | ||||
Ordinary shares, issued | 5,278,348,396 | 5,278,348,396 | 5,057,542,676 | 135,426,300 | |||
Ordinary shares, outstanding | 5,278,348,396 | 5,278,348,396 | 5,057,542,676 | ||||
Equity | |||||||
Common Shares | ¥ 170 | $ 25 | ¥ 161 | ||||
Class B ordinary shares | |||||||
Shareholders' equity | |||||||
Ordinary shares, outstanding | 0 | 0 | 0 | ||||
Parent Company | Reportable legal entity | |||||||
Current assets | |||||||
Cash and cash equivalents | ¥ 61,553 | $ 8,924 | ¥ 2,269 | ||||
Prepayments and other current assets | 443 | 64 | 390 | ||||
Total current assets | 61,996 | 8,988 | 2,659 | ||||
Non-current assets | |||||||
Intangible assets | 109,847 | 15,926 | 674,057 | ||||
Investments in subsidiaries, the VIE and subsidiaries of the VIE | 133,085,591 | 19,295,598 | 86,252,341 | ||||
Total non-current assets | 133,195,438 | 19,311,524 | 86,926,398 | ||||
Total Assets | 133,257,434 | 19,320,512 | 86,929,057 | ||||
Current liabilities | |||||||
Accrued expenses and other liabilities | 25,017 | 3,627 | 24,607 | ||||
Convertible bonds, current portion | 13,885,751 | 2,013,245 | |||||
Total current liabilities | 13,910,768 | 2,016,872 | 24,607 | ||||
Convertible bonds | 1,575,755 | 228,463 | 11,788,907 | ||||
Other non-current liabilities | ¥ | 996 | ||||||
Total non-current liabilities | 1,575,755 | 228,463 | 11,789,903 | ||||
Total liabilities | 15,486,523 | 2,245,335 | 11,814,510 | ||||
Equity | |||||||
Additional paid-in capital | 99,250,468 | 14,389,965 | 95,340,819 | ||||
Statutory reserves | 5,000 | 725 | |||||
Accumulated other comprehensive income | 3,322,238 | 481,679 | (2,519,900) | ||||
(Accumulated deficits)/retained earnings | 15,193,035 | 2,202,783 | (17,706,533) | ||||
Total shareholders' equity | 117,770,911 | 17,075,177 | 75,114,547 | ||||
Total liabilities and shareholders' equity | ¥ 133,257,434 | $ 19,320,512 | ¥ 86,929,057 | ||||
Parent Company | Reportable legal entity | Class A ordinary shares | |||||||
Shareholders' equity | |||||||
Ordinary shares, shares authorized | 77,300,000,000 | 77,300,000,000 | 77,300,000,000 | ||||
Equity | |||||||
Common Shares | ¥ 170 | $ 25 | ¥ 161 |
Condensed Financial Informati_4
Condensed Financial Information of the Company - Statements of comprehensive income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Costs of revenues | ||||
Total costs of revenues | ¥ (31,462,298) | $ (4,561,604) | ¥ (31,718,093) | ¥ (19,278,641) |
Sales and marketing expenses | (54,343,719) | (7,879,099) | (44,801,720) | (41,194,599) |
General and administrative expenses | (3,964,935) | (574,862) | (1,540,774) | (1,507,297) |
Total operating expenses | (68,693,370) | (9,959,603) | (55,335,084) | (49,593,549) |
Operating (loss)/profit | 30,401,921 | 4,407,864 | 6,896,762 | (9,380,325) |
Interest income | 3,997,100 | 579,525 | 3,061,662 | 2,455,366 |
Interest expense | (51,655) | (7,489) | (1,231,002) | (757,336) |
Foreign exchange gain | (149,710) | (21,706) | 71,750 | 225,197 |
Other loss | 2,221,358 | 322,066 | 656,255 | 193,702 |
Share of losses from subsidiaries, the VIE and subsidiaries of the VIE | (155,285) | (22,514) | 246,828 | 83,654 |
Loss before income tax | 36,263,729 | 5,257,746 | 9,702,255 | (7,179,742) |
Income tax expenses | 4,725,667 | 685,157 | 1,933,585 | 0 |
Net (loss)/income | 31,538,062 | 4,572,589 | 7,768,670 | (7,179,742) |
Other comprehensive income net of tax of nil | ||||
Foreign currency translation difference, net of tax of nil | 5,860,304 | 849,664 | (1,472,172) | (2,495,958) |
Unrealized losses on available-for-sale investments, net of tax | (18,166) | (2,634) | ||
Total other comprehensive (loss)/income | 5,842,138 | 847,030 | (1,472,172) | (2,495,958) |
Comprehensive loss | 37,380,200 | 5,419,619 | 6,296,498 | (9,675,700) |
Foreign currency translation difference, tax | 0 | 0 | 0 | |
Parent Company | Reportable legal entity | ||||
Costs of revenues | ||||
Total costs of revenues | (605,611) | (87,805) | (580,506) | (623,524) |
Sales and marketing expenses | (27,839) | (36,940) | ||
General and administrative expenses | (54,605) | (7,917) | (40,826) | (6,746) |
Total operating expenses | (54,605) | (7,917) | (68,665) | (43,686) |
Operating (loss)/profit | (660,216) | (95,722) | (649,171) | (667,210) |
Interest income | 11,693 | 1,695 | 32,452 | 126,502 |
Interest expense | (51,655) | (7,489) | (1,221,846) | (695,794) |
Other loss | (14) | (2) | 27,497 | 53,244 |
Share of losses from subsidiaries, the VIE and subsidiaries of the VIE | 32,238,254 | 4,674,107 | 9,579,738 | (5,996,484) |
Loss before income tax | 31,538,062 | 4,572,589 | 7,768,670 | (7,179,742) |
Income tax expenses | 0 | 0 | 0 | 0 |
Net (loss)/income | 31,538,062 | 4,572,589 | 7,768,670 | (7,179,742) |
Other comprehensive income net of tax of nil | ||||
Foreign currency translation difference, net of tax of nil | 5,860,304 | 849,664 | (1,472,172) | (2,495,958) |
Unrealized losses on available-for-sale investments, net of tax | (18,166) | (2,634) | ||
Total other comprehensive (loss)/income | 5,842,138 | 847,030 | (1,472,172) | (2,495,958) |
Comprehensive loss | 37,380,200 | $ 5,419,619 | 6,296,498 | (9,675,700) |
Other comprehensive income/(loss), net of tax | ¥ 0 | ¥ 0 | ¥ 0 |
Condensed Financial Informati_5
Condensed Financial Information of the Company - Statement 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 (¥) | |
Statement of cash flows | ||||
Net cash generated from operating activities | ¥ 48,507,860 | $ 7,032,979 | ¥ 28,783,011 | ¥ 28,196,627 |
Cash flows from investing activities: | ||||
Proceeds from sales of short-term investments | 141,928,351 | 20,577,677 | 97,547,038 | 55,083,390 |
Purchase of short-term time deposits, held to maturities and other investments | (160,414,453) | (23,257,909) | (116,639,550) | (86,438,068) |
Net cash used in investing activities | (22,361,670) | (3,242,137) | (35,562,365) | (38,357,901) |
Cash flows from financing activities: | ||||
Proceeds from the private placements | 11,063,339 | |||
Proceeds from follow-on offering | 26,805,438 | |||
Net proceeds from the issuance of convertible bonds | 13,024,199 | |||
Proceeds from (Payments for) Other Financing Activities | 10,079 | 1,461 | 318 | (6) |
Net cash generated from/(used in) financing activities | 10,079 | 1,461 | (1,875,154) | 51,798,996 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 100,177 | 14,524 | (145,157) | (139,943) |
Increase/(decrease) in cash, cash equivalents and restricted cash | 26,256,446 | 3,806,827 | (8,799,665) | 41,497,779 |
Cash, cash equivalents and restricted cash at beginning of the year | 66,043,971 | 9,575,476 | 74,843,636 | 33,345,857 |
Cash, cash equivalents and restricted cash at end of the year | 92,300,417 | 13,382,303 | 66,043,971 | 74,843,636 |
Parent Company | Reportable legal entity | ||||
Statement of cash flows | ||||
Net cash generated from operating activities | (24,202) | (3,509) | 82,074 | 735,231 |
Cash flows from investing activities: | ||||
Proceeds from sales of short-term investments | 5,764,134 | 6,034,863 | ||
Purchase of short-term time deposits, held to maturities and other investments | (6,250,248) | |||
Funding provided to subsidiary, the VIE and subsidiary of the VIE | (5,855,304) | (52,051,474) | ||
Cash received from subsidiaries, the VIE and subsidiaries of the VIE, net | 65,707 | 9,527 | ||
Net cash used in investing activities | 65,707 | 9,527 | (91,170) | (52,266,859) |
Cash flows from financing activities: | ||||
Proceeds from the initial public offering | 11,063,339 | |||
Proceeds from follow-on offering | 26,805,438 | |||
Net proceeds from the issuance of convertible bonds | 13,024,199 | |||
Proceeds from (Payments for) Other Financing Activities | 10,079 | 1,461 | 318 | (6) |
Net cash generated from/(used in) financing activities | 10,079 | 1,461 | 318 | 50,892,970 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7,700 | 1,116 | 4,481 | (16,490) |
Increase/(decrease) in cash, cash equivalents and restricted cash | 59,284 | 8,595 | (4,297) | (655,148) |
Cash, cash equivalents and restricted cash at beginning of the year | 2,269 | 329 | 6,566 | 661,714 |
Cash, cash equivalents and restricted cash at end of the year | ¥ 61,553 | $ 8,924 | ¥ 2,269 | ¥ 6,566 |