Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 001-40210 |
Entity Registrant Name | Tuya Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 10/F, Building A, Huace Center |
Entity Address, Address Line Two | Xihu District |
Entity Address, City or Town | Hangzhou City |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 310012 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Entity Central Index Key | 0001829118 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Shanghai, the People’s Republic of China |
American depositary share | |
Document Information | |
Title of 12(b) Security | American depositary shares, each representing one Class A ordinary share, par value US$0.00005 per share |
Trading Symbol | TUYA |
Security Exchange Name | NYSE |
Common Class A | |
Document Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00005 per share |
Entity Common Stock, Shares Outstanding | 499,146,560 |
Common Class B | |
Document Information | |
Entity Common Stock, Shares Outstanding | 79,400,000 |
Business Contact | |
Document Information | |
Contact Personnel Name | Yao (Jessie) Liu |
Entity Address, Address Line One | 10/F, Building A, Huace Center |
Entity Address, Address Line Two | Xihu District |
Entity Address, City or Town | Hangzhou City |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 310012 |
City Area Code | 0571 |
Local Phone Number | 86915981 |
Contact Personnel Email Address | ir@tuya.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 133,161 | $ 963,938 |
Restricted cash | 638 | |
Short-term investments | 821,134 | 102,134 |
Accounts receivable, net | 12,172 | 32,701 |
Notes receivable | 2,767 | 1,393 |
Inventories, net | 45,380 | 62,582 |
Prepayments and other current assets | 8,752 | 27,882 |
Total current assets | 1,023,366 | 1,191,268 |
Non-current assets: | ||
Property, equipment and software, net | 3,827 | 6,805 |
Operating lease right-of-use assets, net | 9,736 | 22,181 |
Long-term investments | 18,031 | 26,078 |
Other non-current assets | 1,179 | 1,818 |
Total non-current assets | 32,773 | 56,882 |
Total assets | 1,056,139 | 1,248,150 |
Current liabilities (including amounts of the consolidated VIE without recourse to the primary beneficiary of 1,221 and 1,422 as of December 31, 2021 and 2022, respectively): | ||
Accounts payable | 9,595 | 12,212 |
Advance from customers | 27,633 | 31,088 |
Deferred revenue, current | 6,821 | 9,254 |
Accruals and other current liabilities | 33,383 | 50,847 |
Lease liabilities, current | 3,850 | 5,697 |
Total current liabilities | 81,282 | 109,098 |
Non-current liabilities (including amounts of the consolidated VIE without recourse to the primary beneficiary of 38 and nil as of December 31, 2021 and 2022, respectively): | ||
Lease liabilities, non-current | 5,292 | 16,048 |
Deferred revenue, non-current | 394 | 859 |
Other non-current liabilities | 7,004 | 8,484 |
Total non-current liabilities | 12,690 | 25,391 |
Total liabilities | 93,972 | 134,489 |
Shareholders' equity: | ||
Treasury stock (US$0.00005 par value; 11,604,808 and 25,596,331 shares as of December 31, 2021 and 2022, respectively) | (86,438) | (46,930) |
Additional paid-in capital | 1,584,764 | 1,526,140 |
Accumulated other comprehensive income/(loss) | (22,115) | 2,320 |
Accumulated deficit | (514,073) | (367,898) |
Total shareholders' equity | 962,167 | 1,113,661 |
Total liabilities and shareholders' equity | 1,056,139 | 1,248,150 |
Common Stock | ||
Shareholders' equity: | ||
Ordinary shares | ||
Class A ordinary shares | ||
Shareholders' equity: | ||
Ordinary shares | 25 | 25 |
Class B ordinary shares | ||
Shareholders' equity: | ||
Ordinary shares | $ 4 | $ 4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current liabilities | $ 81,282 | $ 109,098 |
Non-current liabilities | $ 12,690 | $ 25,391 |
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, shares authorized | 0 | 0 |
Ordinary shares, shares issued | 0 | 0 |
Ordinary shares, shares outstanding | 0 | 0 |
Treasury stock, par value | $ 0.00005 | $ 0.00005 |
Treasury stock (in shares) | 25,596,331 | 11,604,808 |
Class A ordinary shares | ||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, shares authorized | 800,000,000 | 600,000,000 |
Ordinary shares, shares issued | 499,146,560 | 491,846,560 |
Ordinary shares, shares outstanding | 473,550,229 | 480,241,752 |
Class B ordinary shares | ||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 79,400,000 | 79,400,000 |
Ordinary shares, shares outstanding | 79,400,000 | 79,400,000 |
Consolidated VIE | ||
Current liabilities | $ 1,422 | $ 1,221 |
Non-current liabilities | $ 0 | $ 38 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 208,172 | $ 302,076 | $ 179,874 |
Cost of revenue | (118,749) | (174,209) | (117,937) |
Gross profit | 89,423 | 127,867 | 61,937 |
Operating expenses: | |||
Research and development expenses | (144,942) | (174,289) | (77,430) |
Sales and marketing expenses | (55,662) | (75,384) | (37,556) |
General and administrative expenses | (67,513) | (71,589) | (17,868) |
Other operating incomes, net | 10,508 | 9,835 | 1,071 |
Total operating expenses | (257,609) | (311,427) | (131,783) |
Loss from operations | (168,186) | (183,560) | (69,846) |
Other income/(loss) | |||
Other non-operating incomes, net | 2,904 | 1,958 | |
Financial income, net | 18,546 | 7,286 | 3,220 |
Foreign exchange (loss)/gain, net | 2,441 | (618) | (80) |
Loss before income tax expense | (144,295) | (174,934) | (66,706) |
Income tax expense | (1,880) | (490) | (206) |
Net loss | (146,175) | (175,424) | (66,912) |
Net loss attributable to Tuya Inc. | (146,175) | (175,424) | (66,912) |
Net loss attributable to ordinary shareholders | (146,175) | (175,424) | (66,912) |
Net loss | (146,175) | (175,424) | (66,912) |
Other comprehensive income/(loss) | |||
Changes in fair value of long-term investments | (9,493) | 357 | |
Foreign currency translation | (14,942) | 1,482 | 2,882 |
Total comprehensive loss attributable to Tuya Inc. | $ (170,610) | $ (173,585) | $ (64,030) |
Weighted average number of ordinary shares used in computing net loss per share, basic | 553,527,529 | 489,149,533 | 221,980,000 |
Weighted average number of ordinary shares used in computing net loss per share, diluted | 553,527,529 | 489,149,533 | 221,980,000 |
Net loss per share attributable to ordinary shareholders-basic | $ (0.26) | $ (0.36) | $ (0.30) |
Net loss per share attributable to ordinary shareholders-diluted | $ (0.26) | $ (0.36) | $ (0.30) |
Research and development expenses | |||
Other comprehensive income/(loss) | |||
Share-based compensation expenses | $ 14,692 | $ 14,542 | $ 2,596 |
Sales and marketing expenses | |||
Other comprehensive income/(loss) | |||
Share-based compensation expenses | 6,825 | 6,702 | 1,529 |
General and administrative expenses | |||
Other comprehensive income/(loss) | |||
Share-based compensation expenses | $ 47,502 | $ 44,845 | $ 5,321 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY/(DEFICIT) - USD ($) $ in Thousands | Ordinary shares | Additional paid-in capital | Treasury Stock | Receivables from shareholders | Accumulated other comprehensive (loss)/income | Accumulated deficit | Total |
Beginning Balance at Dec. 31, 2019 | $ 11 | $ 17,869 | $ (10) | $ (2,401) | $ (125,562) | $ (110,093) | |
Beginning Balance (in shares) at Dec. 31, 2019 | 221,980,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (66,912) | (66,912) | |||||
Subscription contributions from shareholders | $ 10 | 10 | |||||
Foreign currency translation adjustment | 2,882 | 2,882 | |||||
Share-based compensation | 9,446 | 9,446 | |||||
Ending Balance at Dec. 31, 2020 | $ 11 | 27,315 | 481 | (192,474) | (164,667) | ||
Ending Balance (in shares) at Dec. 31, 2020 | 221,980,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance | $ 2 | 904,730 | 904,732 | ||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance (in shares) | 45,076,479 | ||||||
Issuance of ordinary shares prior to Initial Public Offering | $ 1 | 199,999 | 200,000 | ||||
Issuance of ordinary shares prior to Initial Public Offering (in shares) | 16,026,282 | ||||||
Conversion of redeemable preferred shares | $ 14 | 333,653 | 333,667 | ||||
Conversion of redeemable preferred shares (in shares) | 278,163,799 | ||||||
Issuance of ordinary shares reserved for equity incentive plan | $ 1 | $ (1) | |||||
Issuance of ordinary shares reserved for equity incentive plan (in shares) | 10,000,000 | (10,000,000) | |||||
Repurchase of ordinary shares | $ (53,645) | (53,645) | |||||
Repurchase of ordinary shares (in share) | (7,008,269) | ||||||
Exercise of share option | (5,646) | $ 6,716 | $ 1,070 | ||||
Exercise of share option (in shares) | 5,403,461 | 5,403,461 | |||||
Net loss | (175,424) | $ (175,424) | |||||
Fair value change of long-term investment | 357 | 357 | |||||
Foreign currency translation adjustment | 1,482 | 1,482 | |||||
Share-based compensation | 66,089 | 66,089 | |||||
Ending Balance at Dec. 31, 2021 | $ 29 | 1,526,140 | $ (46,930) | 2,320 | (367,898) | $ 1,113,661 | |
Ending Balance (in shares) at Dec. 31, 2021 | 571,246,560 | ||||||
Ending Balance (in shares) at Dec. 31, 2021 | (11,604,808) | 11,604,808 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of ordinary shares | $ (59,631) | $ (59,631) | |||||
Repurchase of ordinary shares (in share) | (18,839,849) | ||||||
Exercise of share option and vested restricted share unit | (19,084) | $ 20,123 | 1,039 | ||||
Exercise of share option and vested restricted share unit (in shares) | 4,848,326 | ||||||
Issuance of ordinary shares upon the Dual Primary Listing, net of cost of issuance | 8,689 | $ 8,689 | |||||
Issuance of ordinary shares upon the Dual Primary Listing, net of cost of issuance (in shares) | 7,300,000 | ||||||
Exercise of share option (in shares) | 4,502,326 | ||||||
Net loss | (146,175) | $ (146,175) | |||||
Fair value change of long-term investment | (9,493) | (9,493) | |||||
Foreign currency translation adjustment | (14,942) | (14,942) | |||||
Share-based compensation | 69,019 | 69,019 | |||||
Ending Balance at Dec. 31, 2022 | $ 29 | $ 1,584,764 | $ (86,438) | $ (22,115) | $ (514,073) | $ 962,167 | |
Ending Balance (in shares) at Dec. 31, 2022 | 578,546,560 | ||||||
Ending Balance (in shares) at Dec. 31, 2022 | (25,596,331) | 25,596,331 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY/(DEFICIT) (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 28, 2014 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY/(DEFICIT) | |||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net loss | $ (146,175) | $ (175,424) | $ (66,912) |
Adjustments to reconcile net loss to net cash generated from operating activities: | |||
Share-based compensation | 69,019 | 66,089 | 9,446 |
Depreciation and amortization of property, equipment and software | 3,443 | 3,369 | 1,662 |
Amortization of right-of-use assets | 4,766 | 6,981 | 4,022 |
Allowance for doubtful receivables | 288 | 1,030 | 278 |
Inventory write-downs | 4,067 | 1,806 | 539 |
Loss/(gain) on disposal of property, equipment and software | 219 | (365) | |
Gain on disposal of a long-term investment | 147 | ||
Loss/(gain) on foreign currency exchange rates | (2,441) | 618 | 80 |
Investment loss | 2,167 | ||
Fair value change on short-term and long-term investments | (7,449) | 833 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 20,241 | (23,430) | (7,243) |
Notes receivable | (1,374) | 7,733 | (8,747) |
Inventories | 13,135 | (22,121) | (19,787) |
Prepayments and other current assets | 8,893 | (13,134) | 3,615 |
Other non-current assets | 639 | (89) | (778) |
Accounts payable | (2,617) | (10,947) | 10,983 |
Advance from customers | (3,455) | 4,010 | 13,027 |
Deferred revenue | (2,898) | 5,938 | 3,398 |
Income tax payable | (159) | 4 | |
Accruals and other payables | (24,280) | 19,109 | 11,939 |
Lease liabilities | (4,924) | (7,164) | (4,590) |
Other non-current liability | (1,480) | 8,484 | |
Net cash used in operating activities | (70,654) | (126,103) | (49,211) |
Cash flows from investing activities: | |||
Payment for short-term investments | (1,257,697) | (468,705) | (196,806) |
Proceeds from disposal of short-term investments | 543,790 | 385,549 | 192,493 |
Purchase of property, equipment and software | (710) | (6,193) | (3,201) |
Proceeds from disposal of property, equipment and software | 464 | 28 | 5 |
Provision of bridge loans | (2,930) | ||
Loan repayment | 628 | ||
Payment for long-term investments | 1,575 | 21,334 | 564 |
Proceeds from disposal of a long-term investment | 221 | ||
Proceeds from other investing activities | 1,503 | ||
Net cash used in investing activities | (714,225) | (112,957) | (7,852) |
Cash flows from financing activities: | |||
Proceeds from issuance of Class A ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance | 904,732 | ||
Payment for repurchase of ordinary shares | (48,678) | (64,000) | |
Proceeds from issuance of ordinary shares prior to Initial Public Offering | 200,000 | ||
Proceeds from exercise of share options | 1,039 | 1,070 | |
Proceeds from issuance of Class A ordinary shares upon the Dual Primary Listing, net of cost of issuance | 9,057 | ||
Payments of deferred offering costs | (182) | ||
Subscription contributions from shareholders | 10 | ||
Net cash (used in)/ generated from financing activities | (38,582) | 1,041,802 | (172) |
Effect of exchange rate changes on cash and cash equivalents, restricted cash | (7,954) | 2,879 | 2,903 |
Net (decrease)/ increase in cash and cash equivalents, restricted cash | (831,415) | 805,621 | (54,332) |
Cash and cash equivalents, restricted cash at the beginning of year | 964,576 | 158,955 | 213,287 |
Cash and cash equivalents, restricted cash at the end of year | 133,161 | 964,576 | 158,955 |
Supplemental cash flow disclosures | |||
Cash paid for income tax | 843 | 616 | 210 |
Supplemental schedule of non-cash investing activities | |||
Conversion from bridge loan into investment | 2,302 | ||
Cash and cash equivalents | 133,161 | 963,938 | 158,792 |
Restricted cash | 638 | 163 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 133,161 | $ 964,576 | $ 158,955 |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2022 | |
Organization and principal activities | |
Organization and principal activities | 1. Organization and principal activities (a) Principal Activities Tuya Inc. (the “Company”) was incorporated under the laws of the Cayman Islands on August 28, 2014, as an exempted company with limited liability. The Company and its subsidiaries and consolidated variable interest entity (“VIE”) (collectively referred to as the “Group”) are principally engaged in offering PaaS (Platform-as-a-Service) to business customers developing IoT (Internet of Things) devices, including brands and their OEMs (original equipment manufacturer). Also, the Group offers Industry SaaS (Software-as-a-Service) and cloud-based value-added services to its customers. The Group also sells finished smart devices powered by Tuya purchased from qualified OEMs (the “Smart device distribution”). (b) History of the Group Prior to the incorporation of Tuya Inc. in August 2014, the Group commenced its initial operations through Hangzhou Tuya Technology Co., Ltd. (“Hangzhou Tuya Technology”), which was established on June 16, 2014 by Wang Xueji and another individual. After a series of agreements, Hangzhou Tuya Technology was owned by Wang Xueji and other four individuals (collectively, the “Registered Shareholders”) together with two unrelated investors of Series Angel financing (the “Non-Registered Shareholders VIE Investors”) by August 2014. In December 2014, Hangzhou Tuya Information Technology Co., Ltd. (“the WFOE”) was established after the incorporation of Tuya Inc. The Group then entered into a series of contractual arrangements among the WFOE, Hangzhou Tuya Technology and Hangzhou Tuya Technology’s shareholders in December 2014, and thereafter Hangzhou Tuya Technology (the “VIE”) became the variable interest entity of the Group. After the completion of this transaction, the Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and the consolidated VIE. In 2019, the VIE agreements were amended to modify the VIE’s shareholders list and equity interest of each shareholder as a result of the change in registered share capital of the VIE and the exit of Non-Registered Shareholders VIE Investors as the VIE’s shareholders. The contractual arrangements were further amended in January 2022. The amendments discussed herein did not impact the VIE accounting treatment discussed further in Note 2(b). As of December 31, 2021 and 2022, the Company’s principal subsidiaries and consolidated VIE are as follows: Date of Place of Percentage of direct Principal Name of subsidiaries incorporation incorporation or indirect ownership activities December 31, 2021 2022 Tuya (HK) Limited September 12, 2014 Hong Kong, China 100 % 100 % Investment holding and business development Hangzhou Tuya Information Technology Co., Ltd. December 5, 2014 Hangzhou, China 100 % 100 % Sales of IoT PaaS, Smart devices, SaaS and Others and research and development Tuya Smart Inc. July 19, 2019 Delaware, United States 100 % 100 % Business development Tuya Global Inc. July 22, 2015 California, United States 100 % 100 % Business development Tuya smart (India) Private Limited January 31, 2019 Gurgaon, India 100 % 100 % Business development Tuya smart (Colombia) S.A.S July 2, 2019 Medellin, Colombia 100 % 100 % Business development Tuya GmbH May 13, 2019 Hamburg, Germany 100 % 100 % Business development Tuya Japan Co., Ltd. January 23, 2019 Tokyo, Japan 100 % 100 % Business development Zhejiang Tuya Smart Electronics Co., Ltd. May 9, 2020 Hangzhou, China 100 % 100 % Sales of Smart devices Date of Place of Economic Principal Name of VIE incorporation incorporation interest held activities December 31, 2021 2022 Hangzhou Tuya Technology Co., Ltd. June 16, 2014 Hangzhou, China 100 % 100 % No substantial business The VIE operated de minimis business activities and had no material impact on the Company’s financial position, results of operations or cash flows for the years ended December 31, 2020, 2021 and 2022. (c) COVID-19 impact and liquidity For the year ended December 31, 2022, the Group’s financial performance was impacted by COVID-19 and its impact to commercial activities in China. For the year ended December 31, 2021, the Group’s financial performance was not significantly impacted by COVID-19. Prospective impacts to the Group and its financial results relating to the pandemic will depend on future developments, which are highly uncertain and cannot be predicted at this time. Based on the assessment on the Group’s liquidity and financial positions, the Group believes that its current cash and cash equivalents and short-term investments will be sufficient to enable it to meet its anticipated working capital requirements and capital expenditures for at least the next twelve months from the date these consolidated financial statements are issued. |
Principal Accounting Policies
Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Principal Accounting Policies | |
Principal Accounting Policies | 2. Principal Accounting Policies (a) Basis of Preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principal accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Basis of Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, and the VIE have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly: (1) controls more than one half of the voting power; (2) has the power to appoint or remove the majority of the members of the board of directors; (3) casts a majority of votes at the meeting of the board of directors; or (4) governs the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. The Company applies the guidance codified in Accounting Standard Codification 810, Consolidations (“ASC 810”) on accounting for the VIE, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. A VIE is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns, or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor. (c) Use of Estimates The preparation of the Group’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, long-lived assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to impairment provision for inventories, valuation allowance for deferred tax assets, stand-alone selling prices (SSP) for each distinct performance obligation, the valuation of ordinary shares and share-based compensation. Estimates are based on historical experiences and on various assumptions that the Group believes are reasonable under current circumstances. As of December 31, 2021 and 2022, the Group considered the economic implications of the COVID-19 on its significant judgments and estimates. Given that changes in circumstances, facts and experience may cause the Group to revise its estimates, actual results could differ materially from those estimates. (d) Functional Currency and Foreign Currency Translation The Group uses United States dollar as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Cayman Islands and Hong Kong is the United States dollar, while the functional currency of the Group’s other subsidiaries and VIE is their respective local currency as determined based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive loss as foreign exchange related gains or loss. The financial statements of the Group’s entities using functional currency other than US$ are translated from the functional currency to the reporting currency, US$. Assets and liabilities of the Group’s subsidiaries incorporated in PRC are translated into US$ at fiscal year-end exchange rates, while income and expense items are translated at average exchange rates prevailing during each period presented, representing the index rates stipulated by the People’s Bank of China. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity on the consolidated financial statements. (e) Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: ● Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. ● Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. ● Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group mainly consist of cash and cash equivalents, restricted cash, short-term investments, account receivables, notes receivable, certain other current assets, long-term investments, trade payables and certain accruals and other liabilities. As of December 31, 2021 and 2022, except for short-term investments, debt securities and equity securities with readily determinable fair value included in long-term investments, the carrying values of these financial instruments approximated their fair values due to their short-term maturity. The Group reports equity securities with readily determinable fair value included in short-term investments at fair value and discloses the fair value of these investments based on level 1 measurement. The Group reports time deposits and wealth management products included in short-term investments and the derivative instruments included in prepayment and other current asset at fair value, and discloses their fair value based on level 2 measurement. The Group reports equity securities with readily determinable fair value included in long-term investments at fair value and discloses the fair value of these investments based on level 2 measurement. The Group reports investment in available-for-sale debt securities included in long-term investments at fair value and discloses the fair value of these investments based on level 3 measurement. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Fair value measurement at reporting date using Fair value Quoted Prices in Active Significant as of Markets for Identical Significant Other Unobservable December 31, Assets Observable Inputs Inputs Description 2021 (Level 1) (Level 2) (Level 3) Assets: Short-term investments 102,134 4,624 97,510 — Derivative instruments 74 — 74 — Long-term investments 26,078 — 495 25,583 128,286 4,624 98,079 25,583 Fair value measurement at reporting date using Fair value Quoted Prices in Active Significant as of Markets for Identical Significant Other Unobservable December 31, Assets Observable Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Assets: Short-term investments 821,134 2,249 818,885 — Long-term investments 18,031 — 366 17,665 839,165 2,249 819,251 17,665 The roll forward of major Level 3 investments are as follows: US$ Fair value of Level 3 investments as of December 31, 2020 — New addition 25,226 The change in fair value of the investments 357 Fair value of Level 3 investments as of December 31, 2021 25,583 New addition 1,575 The change in fair value of the investments (9,493) Fair value of Level 3 investments as of December 31, 2022 17,665 Management determined the fair value of these Level 3 investments based on market approach using various unobservable inputs. The determination of the fair value required significant judgement by management with respect to the assumptions and estimates for the lack of marketability discounts, expected volatility and probability in equity allocation. The significant unobservable inputs adopted in the valuation as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 Unobservable Inputs Expected volatility 37%-69 % 40%-63 % Probability Liquidation scenario:40 % Liquidation scenario:35%-45 % Redemption scenario:40 % Redemption scenario:35%-45 % IPO scenario:20 % IPO scenario:10%-30 % (f) Cash and Cash Equivalents Cash and cash equivalents include cash in bank and time deposits placed with banks or other financial institutions which have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash. (g) Restricted Cash Restricted cash represents cash that cannot be withdrawn without the permission of third parties. The Group’s restricted cash is substantially cash balance on deposit required by its business partners and commercial banks. The restricted cash balance for the year ended December 31, 2021 was related to deposits for foreign currency forward contracts, and were subsequently released from the restriction in January 2022. (h) Short-term Investments Short-term investments are comprised of i) time deposits placed with banks with original maturities longer than three months but less than one year, ii) structured deposits and wealth management products issued by banks which contains fixed or variable interest with original maturities within one year, and iii) equity securities with readily determinable fair value which the Group has intention to sell within one year. The time deposits and wealth management products are generally not permitted to be redeemed early or are subject to penalties for redemption prior to maturities. These investments are stated at fair value. Changes in the fair value are reflected in financial income, net in the consolidated statements of comprehensive loss. (i) Accounts Receivable, net Accounts receivables are presented net of allowance for doubtful accounts. The Group maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Group determines the allowance for doubtful accounts by taking into consideration various factors including but not limited to historical collection experience and creditworthiness of the customers. Accounts receivable balances are written off after all collection efforts have been exhausted. Notes receivable are primarily bank acceptance notes. The Group accepts bank acceptance notes from customers for products sold or services performed in the ordinary course of business. Bank acceptance notes are negotiable instruments with cash settlement from commercial banks within 6 months. Upon receipt of the bank acceptance notes, the Group’s accounts receivable from the customer is derecognized. The bank acceptance notes can also be endorsed to suppliers as settlement of accounts payable. Bank acceptance notes of US$1.4 million, nil, and nil were endorsed to suppliers for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the endorsed bank acceptance notes but yet due were nil and nil, respectively. The Group sells bank acceptance notes to financial institutions without recourse in the normal course of business through factoring arrangements. These bank acceptance notes transferred without recourse were nil, US$13,814 and US$4,620 for the years ended December 31, 2020, 2021 and 2022 respectively, and were derecognized. (j) Inventories, net Inventories are comprised of finished goods, work in process, raw materials and low value consumables and spare parts. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventories, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased. (k) Operating Leases The Group adopted ASC 842, Leases, on January 1, 2019 on modified retrospective basis. The Group determines if an arrangement is a lease at inception. Operating leases are primarily for office and warehouse and are included in operating lease right-of-use assets, net, operating lease liabilities, current and operating lease liabilities, non-current on its consolidated balance sheets. Operating lease right-of-use assets represent the Group’s right to use an underlying asset for the lease term and operating lease liabilities represent obligation to make lease payment arising from the lease. The operating lease right-of-use assets and liabilities are recognized at lease commencement date based on the present value of lease payment over the lease term. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease right-of-use assets also includes any lease payments made and excludes lease incentives. The Group’s lease term may include options to extend or terminate the lease. Renewal options are considered within the operating lease right-of-use assets and liabilities when it is reasonably certain that the Group will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For operating leases with a term of one year or less, the Group has elected not to recognize a lease liability or lease right of use asset on its consolidated balance sheets. Instead, it recognizes the lease payment as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements of comprehensive loss. The Group has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as single lease component. (l) Internal-Use Software Development Costs The Group recognizes its internal-use software development costs related to its IoT cloud platform functions, including related website, software and mobile applications in accordance with ASC 350-50 ”Website development costs” and ASC 350-40 ”Internal-use software”. Costs related to preliminary project activities and post-implementation operating activities are expensed as incurred. Cost capitalized for developing IoT cloud platform functions were not material for the periods presented. (m) Property, Equipment and Software Property, equipment and software are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Depreciation and amortization is computed using the straight-line method over the following estimated useful lives, taking into account any estimated residual value: Leasehold improvements the shorter of their useful lives and the lease terms Computers and electronic equipment 3 years Office equipment 3 years Software 3 years Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and improvements that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. The Group recognized the gain or loss on the disposal of property, equipment and software in the consolidated statements of comprehensive loss. Construction in progress represents assets under construction. Construction in progress is transferred to property, equipment and software and depreciation or amortization commences when an asset is ready for its intended use. (n) Long-term Investments Long-term investments represent the Group’s equity security investments and debt security investments in the periods presented. Equity securities without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in financial income, net in the consolidated statements of comprehensive loss. Debt security investments that have readily determinable fair value, are accounted for as available-for-sale security investments and are recognized based on trade date and carried at estimated fair value with the aggregate unrealized gains and losses related to these investments, net of taxes, reported through other comprehensive income in the consolidated statements of comprehensive loss. (o) Impairment of Long-lived Assets For other long-lived assets including property, equipment and software and other non-current assets, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. (p) Value Added Taxes The Group’s subsidiaries and the VIE in the PRC are subject to value-added taxes (“VAT”) on its products and services, less any deductible VAT the Group has already paid or borne. They are also subject to surcharges on VAT payments in accordance with PRC law. VAT is not included in the revenue recognized for the Group. The Company’s two subsidiaries, Hangzhou Tuya Information Technology Co., Ltd. and Zhejiang Tuya Smart Electronics Co., Ltd. obtained their software copy certificate in July and December 2020, respectively, and are eligible for the VAT refund-upon-collection policy, which entitles Hangzhou Tuya Information Technology Co., Ltd. and Zhejiang Tuya Smart Electronics Co., Ltd. to receive relevant refunds for the amount of VAT in excess of 3% of its actual tax burden upon completion of relevant the VAT refund filling process. The VAT refund received is recorded in other operating incomes, net in the consolidated statements of comprehensive loss. For the years ended December 31, 2020, 2021 and 2022, VAT refunds received by the Company was US$303, US$8,919 and US$6,211, respectively. (q) Revenue Recognition The Group accounts for revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606) for all periods presented. According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group determines revenue recognition through the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. The Group allocates the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recorded net of value-added tax. The Group’s revenue was disaggregated by its major revenue streams in the years presented as follows: Year Ended December 31, 2020 2021 2022 US$ US$ US$ IoT PaaS 151,677 261,360 152,914 Smart device distribution 22,071 22,153 25,446 SaaS and others 6,126 18,563 29,812 Total revenue 179,874 302,076 208,172 I. Revenue from IoT PaaS IoT PaaS combines cloud-based connectivity and basic IoT services, edge capabilities (embedded in modules), app development, and device optimization solutions. The Company determined there are two distinct performance obligations in the delivery of IoT PaaS products including: (1) IoT PaaS products with edge capabilities, app development and device optimization solutions, and; (2) cloud-based connectivity and basic IoT services provided to customers and end consumers. The Group allocates the transaction price to each performance obligation based on their relative standalone selling price. The standalone selling price for IoT PaaS products is estimated based on the competitor’s pricing for similar products in the market, adjusted for entity-specific factors. As the standalone selling price of the cloud-based connectivity and basic IoT services is not directly observable, it is estimated by the Group by using an expected cost plus a margin approach. Key areas of judgment include the selection of relevant cloud and other costs necessary to satisfy the performance obligation and estimated profit margins. For the delivery of IoT PaaS product, revenue is recognized when IoT PaaS products are accepted by customers, which is the point that control of the product is transferred to the customers. A receivable is recognized when the IoT PaaS products are delivered and accepted by customers as this is the point in time that the consideration is unconditional. For cloud-based connectivity and basic IoT services, revenue is deferred and subsequently recognized from the end consumer’s activation to the end of the estimated IoT PaaS product’s life cycle on a straight-line basis. Based on the Group’s historical information, activation occurs, on average, an estimated 6 months after the IoT PaaS products are delivered to customers. The length of life cycle of the IoT PaaS products is estimated based on the historical data in previous years and by referencing the life cycle of different smart devices (e.g. lighting, security and monitoring devices) which ranged from 1.5 Return allowances for IoT PaaS products are estimated based on historical experiences and accounted for as reduction of net revenue. The Group provides sales rebates to its customers from time to time, which is accounted for as reduction of net revenue. The Group started a membership program (the “2019 Membership Program”) in the fourth quarter of 2019. In the 2019 Membership Program, customers pay a fixed fee in exchange for IoT PaaS discount, VIP technical support, valued added services (“VAS” i.e., customized app development), and free participation in promotional activities. The promise to provide for technical support related services, the promotion related services and VAS are considered immaterial promises in the contract and are not considered distinct performance obligations. The membership fee is refundable if the volume requirements are met when the membership period ends. The Group historically generally refunds the membership fees even if the volume requirements are not met. Therefore, the Group does not expect being able to keep any of the membership fees and such fees are recorded as a refund liability under the 2019 Membership Program. The Group launched a new membership program (the “2020 Membership Program”) in the fourth quarter of 2020 and no longer offered 2019 Membership Program ever since. In the 2020 Membership Program, customers pay a non-refundable fixed fee in exchange for member-exclusive IoT PaaS discounts within the membership period of typically 12 months. The Group records the upfront fixed membership fee as a deferred revenue and recognizes revenue on a straight-line basis typically over the 12 II. Revenue from smart device distribution In certain circumstances, the Group offers select brands, primarily customers who prefer not to deal with multiple OEMs, an option to purchase directly from the Group finished smart devices where IoT PaaS is deployed. After the brands place purchase orders directly with the Group, the Group then sources the appropriate smart devices from OEMs based on the type of devices, hardware specifications and other metrics. The Group determines that there are two distinct performance obligations for its smart device distribution including the (1) smart devices embedded with IoT PaaS; and (2) cloud-based connectivity and basic IoT services. The transaction price allocation and revenue recognition are the same as the revenue from IoT PaaS. The Group presents the revenue generated from its smart device distribution on a gross basis as the Group has control of the smart devices before they are transferred to the brand customers. In making this determination, the Group concludes it meets the principles of control and that it is the primary obligor to the brand customers, are subject to inventory risk and have latitude in establishing prices. III. Revenue from SaaS and others SaaS and other revenue mainly include industry SaaS, customized software development and configuration, and other VAS to both business customers and the end consumers. Industry SaaS is a vertical-focused software solution that enables businesses to easily and securely deploy, connect, and manage large numbers of smart devices for which the Group generally charges an annual subscription fee. These services include software authorization and standard SaaS platform maintenances and technical support. Customized software development and configuration mainly relate to contracts for the specific IT needs of the brands. The contracts generally include fixed milestone payments determined based on expected labor hours to complete the milestone. VAS primarily includes complementary services that are provided to brands and OEMs such as app launch, AI-powered virtual voice assistants, and data analytics and others. Such arrangements with the customers are short term and the performance obligations are satisfied at one point of time. VAS also include cloud-based services for the end customers such as IoT data storage, push messaging, object detection and digital content. There are different kinds of contracts included in the SaaS and others, and each contract may contain multiple elements. The Group identifies the distinct performance obligations and allocates transaction price to each distinct performance obligation based on relative estimated standalone selling price. Revenue is recognized when the performance obligations are satisfied, which is either over the period of time in which the Group performs these services or at one point of time. Remaining performance obligations The remaining performance obligations primarily relate to the Group’s provision of i) cloud-based connectivity and basic IoT services; ii) membership services; and iii) SaaS and others, and all three of them are included in deferred revenue. The amounts allocated to the cloud-based connectivity and basic IoT services are deferred and recognized on a straight-line basis over the estimated IoT PaaS product’s life cycle. The Group apportions deferred revenue between current and non-current based upon cloud-based connectivity and basic IoT services to be provided over the life cycle of smart devices. Deferred revenue relating to the Group’s cloud services that have an expiration date of less than 12 months are classified as current, otherwise non-current. Starting from the fourth quarter of 2020, there are i) upfront fixed membership fee received and recorded as part of the deferred revenue, it is recognized as revenue on a straight-line basis typically over the 12 12 As of December 31, 2021 and 2022, the aggregate amount of transaction price allocated to the remaining performance obligations was US$10,113 and US$7,215, respectively, of which US$9,254 and US$6,821 were recorded in current deferred revenue while US$859 and US$394 were recorded in non-current deferred revenue, respectively. The Group’s contract liability, including both deferred revenue and advances from customers, is US$41,201 and US$34,848 as of December 31, 2021 and 2022, respectively. The Group applies the practical expedient to omit disclosure of information about the transaction price allocated to remaining performance obligations and when revenue will be recognized, for contracts which have a duration of one year or less. The remaining amounts recorded in non-current deferred revenue of US$859 and US$394 as of December 31, 2021 and 2022, respectively, would likely be recognized within 18 to 36 months. The Group provides warranty for IoT PaaS and smart device distribution mainly for one year. The Group accrues a warranty reserve for all IoT PaaS and smart device distribution, which include the Group’s best estimate of the projected costs to repair or replace items under warranties. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. These estimates are inherently uncertain given the Group’s relatively short history of sales, and changes to the historical or projected warranty experience may cause material changes to the warranty reserve when the Group accumulates more actual data and experience in the future. The warranty reserve expected to be incurred is included within accruals and other liabilities in the consolidated balance sheets. (r) Advances from Customers Amounts recorded in the advances from customers account represent cash payments made upfront by the Group’s customers under each sales contract. These amounts are not yet reclassed to the deferred revenue account because the Group has not started to fulfil any of its performance obligations identified under the contract at the time. The amounts in the advances from customers are reclassified to either revenue or deferred revenue when the Group commences fulfilment of its performance obligation, depending on whether respective revenue is to be recognized at one point of time or over the period of time. If the Group fulfils its performance obligation at one point of time, the related amount in the advance from customers will be reclassified and recognized as revenue; whereas for the performance obligation that the Group starts to provide over the period of time, the amoun |
Risks and Concentration
Risks and Concentration | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Concentration | |
Risks and Concentration | 3. Risks and Concentration (a) Financial instruments that potentially subject the Group to concentration of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable and notes receivable. The Group deposits its cash and cash equivalents and short-term investments with major financial institutions which the Group believes that no significant credit risk with high credit quality. The Group has not experienced any significant recoverability issue with respect to its accounts receivable. The Group assesses the creditworthiness of each customer when providing services and may require the customers to make advance payments or a deposit before the services are rendered. The following table summarizes customers with greater than 10% of the accounts receivable: As of December 31, 2021 2022 Customer A 19 % * * (b) Concentration of Customers and Suppliers There are no customers from whom revenues individually represent greater than 10% of the total revenues of the Group in any of the periods presented. Suppliers contributed more than 10% of total purchases are as below: Year ended December 31, 2020 2021 2022 Supplier A 13 % 25 % 15 % |
Short-term Investment
Short-term Investment | 12 Months Ended |
Dec. 31, 2022 | |
Short-term Investment | |
Short-term Investment | 4. Short-term Investments As of December 31, 2021 2022 US$ US$ Time deposits 97,510 818,885 Equity securities with readily determinable fair value (2) 4,624 2,249 Wealth management products (1) — — Total short-term investments 102,134 821,134 (1) For the years ended December 31, 2021 and 2022, the Group’s wealth management products mainly consisted of financial products issued by commercial banks in China with a variable interest rate indexed to the performance of underlying assets and a maturity date within one year when purchased or revolving terms. For the years ended December 31, 2020, 2021 and 2022, the weighted average return of the wealth management products was 2.9% , 2.7% and 2.6% , respectively. (2) Starting from July 2021, the Group, from time to time, invested in ordinary shares of a listed company and disposed of portion of the investments. For the years ended December 31, 2021 and 2022, the Group recorded fair value losses on short-term equity investment of US $1,998 and US $2,056 in financial income, respectively, net in the consolidated statements of comprehensive loss. For the years ended December 31, 2021 and 2022, the Group recorded US $422 and nil upon disposal of portion of the investments in financial income, net in the consolidated statements of comprehensive loss, respectively. This investment is classified as equity securities with readily determinable fair values. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, net | |
Accounts Receivable, net | 5. Accounts Receivable, net As of December 31, 2021 2022 US$ US$ Accounts receivable, gross 34,345 13,955 Less: allowance for doubtful accounts (1,644) (1,783) Total accounts receivable, net 32,701 12,172 The Group recorded the allowance for doubtful accounts of US$278, US$1,030, US$288 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, net | |
Inventories, net | 6. Inventories, net Inventories consist of the following: As of December 31, 2021 2022 US$ US$ Raw materials 55,845 44,225 Work in process 3,359 3,237 Finished goods 5,958 4,183 Low value consumables and spare parts 145 153 Less: inventory write-downs (2,725) (6,418) Total inventories, net 62,582 45,380 The Group recorded inventory write-downs of US$539, US$1,806, and US$4,067 for the years ended December 31, 2020,2021 and 2022, respectively. |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Assets | |
Prepayments and Other Assets | 7. Prepayments and Other Assets The current and non-current portions of prepayments and other assets consist of the following: As of December 31, 2021 2022 US$ US$ Advance to suppliers 12,529 5,980 VAT recoverable (2) 621 810 Rental deposits 438 527 Receivables from third party payment platforms 175 299 Interest receivable 123 284 Prepayment for share repurchase (1) 10,355 — Professional cost for Dual Primary Listing 3,049 — Others 592 852 Total prepayments and other current assets 27,882 8,752 Rental deposits 1,818 1,179 Total other non-current assets 1,818 1,179 (1) As of December 31, 2021, prepayment for share repurchase represented the advanced payment by the Group to a bank engaged by the Group for the Share Repurchase Program (Note 14). (2) VAT recoverable represented the balances that the Group can utilize to deduct its VAT liabilities within the next 12 months. |
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 | 8. Property, Equipment and Software, net Property, equipment and software consist of the following: As of December 31, 2021 2022 US$ US$ Cost: Leasehold improvements 3,092 3,389 Computers and electronic equipment 8,539 7,513 Office equipment 437 229 Software 612 726 Construction in progress — 59 Total cost 12,680 11,916 Less: Accumulated depreciation and amortization (5,875) (8,089) Total property, equipment and software, net 6,805 3,827 Depreciation expense was US$1,662, US$3,369, and US$3,443 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Long-term Investment
Long-term Investment | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Investment | |
Long-term Investment | 9. Long-term Investment As of December 31, 2021 2022 US$ US$ Investments in available-for-sale debt securities (1) 25,583 17,665 Investment in an equity security with readily determinable fair values 495 366 Total long-term investments 26,078 18,031 (1) As of December 31, 2021 and 2022, the balance represents the Group’s shareholding interests of several privately held companies. In August 2021, the Group acquired shareholding interest of a privately held company with a cash consideration of RMB20,000 thousand (equivalent to US$3,092). In September 2021, the Group acquired shareholding interest of a privately held company with a cash consideration of RMB5,000 thousand (equivalent to US$774). In October 2021, the Group acquired shareholding interest of a privately held company with a cash consideration of RMB75,000 thousand (equivalent to US$11,713). In December 2021, the Group acquired shareholding interest of a privately held company with total cash consideration of RMB30,640 thousand (equivalent to US$4,672). Prior to the investment, in September 2021, the Group provided a bridge loan to the privately held investee, with principal amount of RMB15,000 thousand (equivalent to US$2,313), which was due within one year. There was a warrant granted to the Group to purchase shares of the customer with pre-agreed valuation cap. This loan arrangement was entered into separately from regular sales business with the customer. In accordance with the bridge loan agreement, the loan was interest free, and the Group was entitled to rights of investments in the customer within certain pre-defined period prior to the loan due dates. In the fourth quarter of 2021, this bridge loan of RMB15,000 thousand (equivalent to US$2,302) was fully converted into an investment in the customer which also included the Group’s additional cash consideration of RMB15,640 thousand (equivalent to US$2,459). There was a realized gain of RMB7,860 thousand (equivalent to US$1,218) recorded in financial income, net for the year ended December 31, 2021 due to the exercise of the warrant. In November 2021, the Group acquired shareholding interest of two privately held companies with cash considerations of RMB3,000 thousand (equivalent to US$467) and RMB10,000 thousand (equivalent to US$1,571), respectively. In December 2021, the Group acquired a shareholding interest of a privately held company with a cash consideration of RMB7,139 thousand (equivalent to US$1,120). In March 2022, the Group acquired a shareholding interest in a privately held company with a cash consideration of RMB10,000 thousand (equivalent to US$1,575). As the Group has the right to request each investee to redeem the Group’s investments at the Group’s investment cost plus interest if the investee fails to meet certain predetermined conditions, the redeemable shares of the investees purchased by the Group were classified as an available-for-sale debt investments and were measured at their respective fair values.For the years ended December 31, 2021 and 2022, the fair value changes of the Group’s investments in these privately held companies were other comprehensive income of US$357 and other comprehensive loss of US$9,493, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2022 | |
Operating Leases | |
Operating Leases | 10. Operating Leases The Company has operating leases primarily for office and operation space. The Company’s operating lease arrangements have remaining terms of one year to five years with no variable lease costs. Operating lease costs were US$4,710, US$8,231 and US$6,626 for the years ended December 31, 2020, 2021 and 2022, respectively. The components of lease expenses were as follows: Year Ended December 31, 2020 2021 2022 US$ US$ US$ Lease cost: Amortization of right-of-use assets 4,022 6,981 4,766 Interest of lease liabilities 396 749 692 Expenses for short-term lease within 12 months 292 501 1,168 Total lease cost 4,710 8,231 6,626 Supplemental cash flow information related to leases were as follows: Year Ended December 31, 2020 2021 2022 US$ US$ US$ Cash paid for amounts included in the measurement of lease liabilities 4,976 7,920 5,554 Right-of-use assets obtained in exchange for operating lease liabilities 7,047 23,810 884 Supplemental consolidated balance sheet information related to leases were as follows: As of December 31, 2021 2022 Right-of-use assets 22,181 9,736 Operating lease liabilities-current 5,697 3,850 Operating lease liabilities-non-current 16,048 5,292 Total lease liabilities 21,745 9,142 Weighted-average remaining lease term Operating leases 3.81 years 2.73 years Weighted-average discount rate Operating lease 4.75% per annum 4.75% per annum Maturities of lease liabilities were as follows: As of December 31, 2021 2022 US$ US$ 2022 6,722 — 2023 6,652 4,200 2024 4,909 2,835 2025 4,888 2,675 2026 646 46 2027 5 4 Total undiscounted lease payments 23,822 9,760 Less: imputed interest (2,077) (618) Total lease liabilities 21,745 9,142 |
Accruals and Other Liabilities
Accruals and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accruals and Other Liabilities | |
Accruals and Other Liabilities | 11. Accruals and Other Liabilities The current and non-current portions of accruals and other liabilities consist of the following: As of December 31, 2021 2022 US$ US$ Accruals and other current liabilities Salary and welfare payable 30,597 16,850 Cloud infrastructure and IT related services fee payables 3,110 3,214 Payment from depositary bank, current (2) 2,611 3,113 Professional service fee payables 5,558 2,036 Deposit payable — 1,436 Advertising and promotion fee payables 4,172 1,078 Sales return allowances 709 1,004 Tax payables 1,796 787 Payables for share repurchase (3) — 716 Membership fee to be refunded (1) 471 388 Product warranty 339 213 Others 1,484 2,548 Total accruals and other current liabilities 50,847 33,383 Other non-current liabilities Payment from depositary bank, non-current (2) 8,484 7,004 Total accruals and other liabilities 59,331 40,387 (1) Membership fee to be refunded presents the balances of refundable membership fee collected by the Group from its customers under the 2019 Membership Program (Note 2(q)). (2) The Company received reimbursement payment of US $13,053 and US $1,926 from a depositary bank in April 2021 and June 2022,respectively. The amount was recorded ratably as other non-operating income over a five-year and 46 months arrangement period, respectively. For the years ended December 31, 2021 and 2022, the Company recorded US $1,958 and US $2,904 in other non-operating income in the consolidated statements of comprehensive loss, respectively. (3) Payables for share repurchase represents the share repurchase consideration to be settled as of December 31, 2022 by the Group to a bank engaged by the Group for the Share Repurchase Program (Note 14). These payables were fully paid subsequently in January 2023. |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Revenue | |
Deferred Revenue | 12. Deferred Revenue As of December 31, 2021 2022 US$ US$ Deferred Revenue -Cloud-based connectivity and basic IoT services (1) 2,669 1,375 -Membership (2) 3,473 672 -SaaS (3) 3,971 5,168 Total deferred revenue 10,113 7,215 (1) Deferred cloud-based connectivity and basic IoT services related revenue Deferred cloud-based connectivity and basic IoT services related revenue represents the Group’s provision of cloud-based connectivity obligation and basic IoT services to customers. Year Ended December 31, 2020 2021 2022 US$ US$ US$ Beginning balances 777 2,058 2,669 Deferral of revenue 1,781 2,157 872 Recognition of deferred revenue (500) (1,546) (2,166) Ending balances 2,058 2,669 1,375 (2) Deferred Revenue-Membership represents the Group’s remaining performance obligation performed over the period of time under its 2020 Membership Program (Note 2(q)). Year Ended December 31, 2020 2021 2022 US$ US$ US$ Beginning balances — 1,077 3,473 Deferral of revenue 1,229 9,259 2,442 Recognition of deferred revenue (152) (6,863) (5,243) Ending balances 1,077 3,473 672 (3) Deferred Revenue-SaaS Deferred Revenue-SaaS mainly represents the Group’s remaining performance obligation in providing industry SaaS services over the period of time (Note 2(q)). Year Ended December 31, 2020 2021 2022 US$ US$ US$ Beginning balances — 1,040 3,971 Deferral of revenue 1,834 6,455 11,779 Recognition of deferred revenue (794) (3,524) (10,582) Ending balances 1,040 3,971 5,168 |
Financial Income, net
Financial Income, net | 12 Months Ended |
Dec. 31, 2022 | |
Financial Income, net. | |
Financial Income, net | 13. Financial Income, net Year Ended December 31, 2020 2021 2022 US$ US$ US$ Interest income and investment income, net (1) 3,073 8,119 20,731 Gain on disposal of long-term investment 147 — — Realized gain of bridge loan conversion to investment — 1,218 — Fair value change of short-term investments — (1,998) (2,056) Fair value change of long-term investments — (53) (129) Total financial income, net 3,220 7,286 18,546 (1) Interest income and investment income, net included interest income and investment income of US$3,073, US$8,045 and US$22,898, as well as investment gain from forward exchange contracts of nil, US$74 and investment loss from forward exchange contracts of US$2,167, for the years ended December 31, 2020, 2021 and 2022, respectively. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary Shares | |
Ordinary Shares | 14. Ordinary Shares On August 28, 2014, the Company was incorporated as an exempted company with limited liability with authorized share capital of US$50 divided into 1,000,000,000 shares with par value US$0.00005 each. On August 28, 2014, the Company issued total 200,000,000 shares of ordinary shares with total cash consideration of US$10 to the Registered Shareholders. The Company issued total 21,980,000 ordinary shares for US$0.0797 per share, with cash proceed of RMB9,720 thousand (equivalent to US$1,577) from two investors and US$175 from the other investor (collectively, the “Angel Investors”), on August 28, 2014 and December 23, 2014, respectively. The Company amended the numbers of its ordinary shares authorized as 934,711,640, 921,032,370, 827,969,950, 767,500,110 and 692,500,110 upon the issuance of Series A, Series A-1, Series B, Series C and Series D convertible preferred shares in December 2014, November 2016, August 2017, April 2018 and September 2019, respectively. As of December 31, 2019 and 2020, the Company had in aggregate of 221,980,000 ordinary shares issued and outstanding, at a par value of US$0.00005. As of December 31, 2019, proceeds of the subscription for ordinary shares of the Company in the amount of US$10 were remained outstanding, and was presented as subscription receivables from ordinary shareholders in equity, a contra-equity balance on the consolidated balance sheets as of December 31, 2019. In 2020, the ordinary shareholders fully paid the US$10 subscription for ordinary shares of the Company, and therefore, as of December 31, 2020, the balance subscription receivables from ordinary shareholders were nil. In early February 2021, the Company issued total 16,026,282 shares of ordinary shares for US$12.48 per share, with total consideration of approximately US$200 million received from two investors at fair market price, including one holder of its Series D Preferred Shares. On March 18, 2021, the Company completed its U.S. IPO of 43,590,000 American Depositary Shares (“ADSs”), each representing one Class A ordinary shares of the Company, at the price of US$21.00 per ADS. On April 20, 2021, the Company’s underwriters exercised their over-allotment option to purchase additional 1,486,479 ADSs. The Company received approximately US$904.7 million of proceeds after deducting underwriting discounts commissions and other offering expense from its U.S. IPO and related over-allotment option arrangement. Immediately prior to the completion of its U.S. IPO, the Company’s authorized share capital was amended as US$50 divided into 1,000,000,000 ordinary shares, among which 600,000,000 authorized ordinary shares were reclassified and re-designated as Class A ordinary shares, 200,000,000 authorized ordinary shares were reclassified and re-designated as Class B ordinary shares, and remaining 200,000,000 authorized ordinary shares were reclassified and re-designated as undesignated shares on a one-for-one basis, of such class or classes (however designated) as the board of directors of the Company may determine in the future. Immediately prior to the completion of its U.S. IPO, a total of 142,400,000 issued and outstanding ordinary shares were converted into Class B ordinary shares on a one-for-one basis. The remaining issued and outstanding ordinary shares and all the Series A, Series A-1, Series B, Series C and Series D Preferred Shares,which were originally classified as Mezzanine Equity, were converted into Class A ordinary shares, in each case on a one-for-one basis immediately prior to the completion of the U.S. IPO (the “Dual Class Conversion”). In respect of matters requiring the votes of shareholders, each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to 15 votes. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. On September 13, 2021 and October 18, 2021, the Company issued 5,000,000 Class A ordinary shares at par to a depository bank reserved solely for the purpose of implementing the Group’s Equity Incentive Plan, respectively. The Group accounted for these shares as issued but not outstanding and presented as treasury stocks in the consolidated balance sheets. On December 23, 2021, 27,000,000 Class B ordinary Shares were converted to Class A ordinary Shares on one-for-one basis for Wang Xueji’s personal investment planning.On December 28, 2021, 36,000,000 Class B ordinary Shares were converted to Class A ordinary Shares on one-for-one basis for Wang Xueji’s personal investment planning. On July 4, 2022, Eastern Time (July 5, 2022, Hong Kong Time), the Company completed its Dual Primary Listing in Hong Kong Exchange (“Dual Primary Listing”) of 7,300,000 Class A ordinary shares, at the price of US$2.46 per ordinary share. On November 1, 2022, the Company amended the numbers of its Class A ordinary shares authorized from 600,000,000 to 800,000,000 at par value of US$0.00005 each. The Company further amended that in respect of matters requiring the votes of shareholders to one vote for each Class A ordinary share and 10 votes for each Class B ordinary share. On August 30, 2021, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of ADSs each representing one Class A ordinary shares during a twelve-month period ended on August 30, 2022. On November 9, 2022, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$50 million of ADSs each representing one Class A ordinary shares (The above mentioned share repurchase programs are collectively referred as the “Share Repurchase Program”). The share repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. In the year ended December 31, 2022, the Company repurchased total 16,086,682 ADSs representing 16,086,682 of ordinary shares, total 2,726,767 ADSs representing 2,726,767 of ordinary shares and total 26,400 ordinary shares under the Share Repurchase Program at a weighted average price of US$3.44 per ADS, US$1.55 per ADS and US$1.71 per ordinary share, respectively. As of December 31, 2022, the remaining authorized amount under the Share Repurchase Program is US$46 million. As of December 31, 2022, the Company’s authorized share capital was amended as US$50 divided into 1,000,000,000 ordinary shares, among which 800,000,000 authorized Class A ordinary shares and 200,000,000 authorized Class B ordinary shares. As of December 31, 2022, the Company had in aggregate of 499,146,560 Class A ordinary shares issued and 473,550,229 shares Class A outstanding, at a par value of US$0.00005. As of December 31, 2022, the Company had in aggregate of 79,400,000 Class B ordinary shares issued and outstanding The activities of the Group’s Class A ordinary shares and Class B ordinary shares the year ended December 31, 2022 are summarized as below: Total of Class A ordinary shares and Class B ordinary Class A ordinary shares Class B ordinary shares shares (US $0.00005 par value) (US $0.00005 par value) (US $0.00005 par value) Number of Number of Number of shares issued Amount shares issued Amount shares issued Amount US$ US$ US$ Balance as of December 31, 2021 491,846,560 25 79,400,000 4 571,246,560 29 Issuance of ordinary shares upon the Dual Primary Listing at par value 7,300,000 — — — 7,300,000 — Balance as of December 31, 2022 499,146,560 25 79,400,000 4 578,546,560 29 |
Convertible Preferred Shares
Convertible Preferred Shares | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Preferred Shares | |
Convertible Preferred Shares | 15. Convertible Preferred Shares The Company issued total 65,288,360 shares (with par value of US$0.00005) of Series A convertible preferred shares (the “Series A Preferred Shares”) for US$0.1378 per share with total cash consideration of US$8,500 from two investors and US$500 from one investor (totally, cash proceed of US$9,000 for Series A) on December 23, 2014 and March 31, 2015, respectively. The Company issued total 13,679,270 shares (with par value of US$0.00005) of Series A-1 convertible preferred shares (the “Series A-1 Preferred Shares”) for US$0.2193 per share from one investor with total cash proceed of US$3,000 on November 11, 2016. The Company issued total 87,756,440 shares (with par value of US$0.00005) of Series B convertible preferred shares (the “Series B Preferred Shares”) for US$0.3305 per share, with total consideration of US$25,000 from three investors and US$4,000 from two investors (totally cash proceed of US$29,000 for Series B) on August 15, 2017 and September 15, 2017, respectively. The Company issued total 60,468,490 shares (with par value of US$0.00005) of Series C convertible preferred shares (the “Series C Preferred Shares”) for US$1.9019 per share, with total cash consideration of US$59,457 from six investors and US$55,550 from three investors (totally cash proceed of US$115,007 for Series C) on April 16, 2018 and May 2, 2018, respectively. The Company issued total 52,428,242 shares (with par value of US$0.00005) of Series D convertible preferred shares (the “Series D Preferred Shares”) for US$3.4317 (the “Series D Issue Price”) per share, with total cash consideration of US$174,918 from three investors and US$5,000 from one investor (totally, cash proceed of US$179,918 for Series D) on September 16, 2019 and November 1, 2019, respectively. The issuance costs incurred for Series D Preferred Shares were US$1,938. The above-mentioned Series A, Series A-1, Series B, Series C and Series D Preferred Shares are collectively referred as the “Preferred Shares”. Series A, Series A-1, Series B, Series C Preferred Shares are collectively referred as the “Junior Preferred Shares”. On November 1, 2019, the Company repurchased 1,457,003 shares from the holder of Series A-1 Preferred Shares, who originally held total 13,679,270 shares of the Company, for US$2.5738 per share, with total cash consideration of US$3,750 while the original issuance price for Series A-1 Preferred Shares was US$0.2193 per share (the “Series A-1 Repurchase”). These repurchased Series A-1 Preferred Shares were then extinguished. All of Preferred Shares were converted into Class A ordinary shares immediately upon the completion of the Company’s U.S. IPO on March 18, 2021 (Note 14). Prior to their conversion,Preferred Shares were entitled to certain preference with respect to conversion, dividends and liquidation. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation | |
Share-based Compensation | 16. Share-based Compensation In December 2014, the board of directors of the Company adopted the Company’s 2015 Equity Incentive Plan (“the 2015 Plan”) and reserved 31,918,690 ordinary shares for issuance under the Plan to grant share-based awards, including restricted shares and share options, to its service providers, defined as the Company’s global employees, directors and external consultants. In July 2020, the 2015 Plan was modified to allow the Company with the intentions of i) providing for the award of restricted stock units (“RSUs”) under the Plan and ii) amending the exercise price of certain outstanding share options held by certain optionees located outside of the U.S. to purchase ordinary shares of the Company (the “Share Option Repricing”), and the number of ordinary shares reserved for the 2015 Plan was modified to 60,778,005 (adjusted in accordance with the Share Split). As of December 31, 2020, the Company had not granted any RSUs to anyone yet, neither had the Company entered any repricing agreement with the optionee under the 2015 Plan yet. As of December 31, 2020, the Company had not granted any restricted shares to anyone yet, except that the part of the ordinary shares issued to the Registered Shareholders with restricted conditions from December 2014 to 2018 was considered as shared based compensation, which was recorded as expenses before the periods presented and in the opening balance of accumulated losses of the Group. Since adoption of the 2015 Plan, the Company granted options to its global employees, director and external consultants. All options granted have a contractual term of ten years from the grant date, and the vest over a period of four years of continuous service, 50% of the shares subject to the option shall vest on the second remaining The Company accounted for the share-based compensation costs on a straight-line bases over the requisite service period for the award based on the fair value on their respectively grant date. In January 2021, the Company entered into agreements with certain optionees under the 2015 Plan to amend the exercise price of certain outstanding share options held by these optionees located outside of the U.S. to purchase ordinary shares of the Company. As a result of this share option repricing, the Company recorded incremental share-based compensation expense of US$1,646 in its consolidated financial statements for the year ended December 31, 2022, and estimated approximately US$0.96 million to be amortized over the remaining requisite service period for the optionees till year ended December 31, 2024. On February 21, 2021, the 2015 Plan was amended to increase the number of ordinary shares available and reserved for issuance under the 2015 Plan to 76,778,005 ordinary shares, which was approved by the board of directors of the Company and the shareholders of the Company. On February 25, 2021, the board of directors of the Company approved further amendment to the 2015 Plan, which provides that starting on January 1, 2022, on the first day of each fiscal year thereafter, the total number of shares available for issuance under the 2015 Plan was increased by an amount equal to the least of (i) 2% of the aggregate number of shares of all classes of ordinary shares of the Company’s issued and outstanding on the last day of the immediately preceding fiscal year and (ii) such number of shares as determined by the board of directors. The Company granted 9,705,000, 18,035,000, and 2,765,000 new share options with four-year requisite service period to its employees and nonemployees for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, 59,961,539 and 56,274,213 options were outstanding under the 2015 Plan. Staring from June 2021, the Company granted RSUs under the 2015 Plan. The Company granted 3,217,000 RSUs and 10,205,500 RSUs with four-year requisite service period to its employees and nonemployees for year ended December 31, 2021 and 2022. As of December 31, 2021 and 2022, 3,050,000 RSUs and 11,638,750 RSUs were outstanding under the 2015 Plan. Share Options The following table sets forth the share options activity for the years ended December 31, 2020, 2021 and 2022: Weighted Weighted Weighted average average average exercise grant date remaining Aggregate Number of price per fair value per contractual intrinsic shares share share term value US$ Outstanding as of December 31, 2019 41,220,000 0.33 0.75 7.49 93,889 Granted 9,705,000 0.42 2.44 Forfeited (2,185,000) 0.62 1.52 Outstanding as of December 31, 2020 48,740,000 0.33 1.05 7.02 591,879 Granted 18,035,000 0.24 12.55 Exercised (5,403,461) 0.14 0.68 Forfeited (1,410,000) 0.31 7.21 Outstanding as of December 31, 2021 59,961,539 0.17 4.40 6.95 364,287 Granted 2,765,000 0.20 3.27 Exercised (4,502,326) 0.20 2.09 Forfeited (1,950,000) 0.47 7.69 Outstanding as of December 31, 2022 56,274,213 0.16 4.42 6.04 98,287 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying stock at each reporting date (December 31, 2020: US$608,251, December 31, 2021: US$374,760, December 31, 2022: US$107,484). The Group uses the Binominal option pricing model to estimate the fair value of stock options. The assumptions used to value the Company’s options grants were as follow: As of December 31, 2020 2021 2022 Exercise price (US Dollar) 0.3~1.08 0.2~2.88 0.2 Exercise multiple 2.2~2.8 2.2~2.8 2.2~2.8 Risk-free interest rate 0.70%~0.82 % 1.13%~1.79 % 1.92%~3.22 % Expected term (in years) 10 10 10 Expected dividend yield — — — Expected volatility 50.66%~50.96 % 50.40%~55.79 % 55.68%~55.78 % Expected forfeiture rate (post-vesting) 3.88 % 2.96%~5.83 % 5.83%~7.70 % Fair value of the underlying shares on the date of options grants (US Dollar) 2.66~3.02 6.25~20.91 2.24~5.46 Fair value of share option (US Dollar) 1.98~2.54 5.78~20.91 2.05~5.27 As of December 31, 2022, there were unrecognized share-based compensation expenses of US$127,887 related to share options granted by the Company, which were expected to be recognized over a weighted-average vesting period of 1.05 years, respectively. Restricted Share Units: The following table sets forth the service-based RSUs activity for the year ended December 31, 2021 and 2022: Weighted average grant Number of shares date fair value per share Outstanding as of December 31, 2020 — — Granted 3,217,000 8.95 Forfeited (167,000) 11.80 Outstanding as of December 31, 2021 3,050,000 8.80 Granted 10,205,500 2.58 Vested (346,000) 6.68 Forfeited (1,270,750) 7.80 Outstanding as of December 31, 2022 11,638,750 3.51 There was no activity of service-based RSUs for the years ended December 31, 2020. As of December 31, 2021 and 2022, there were US$24,933 and US$33,197 of unrecognized share-based compensation expenses related to RSUs granted by the Company, which were expected to be recognized over a weighted-average vesting period of 3.66 years and 3.40 years, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | 17. Income Taxes Cayman Islands Under the current tax laws of Cayman Islands, the Company is not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends. British Virgin Islands Under the current laws of the British Virgin Islands, entities incorporated in the British Virgin Islands are not subject to tax on their income or capital gains. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Group’s subsidiaries in Hong Kong are subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. PRC PRC Enterprise Income Tax (“EIT”) On March 16, 2007, the National People’s Congress of PRC enacted the Enterprise Income Tax Law (the “new CIT Law”), under which foreign invested enterprises (“FIEs”) and domestic companies would be subject to enterprise income tax (“EIT “) at a uniform rate of 25%. The new CIT law became effective on January 1, 2008. In accordance with the implementation rules of EIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires. The WFOE (Hangzhou Tuya Information Technology Co., Ltd.) obtained its HNTE certificate with a valid period of six years from years ended December 31, 2018 to 2024, and renewed in 2022 with a valid period of three years from years ended December 31, 2022 to 2024. Therefore, the WFOE is eligible to enjoy a preferential tax rate of 15% during each of the years the certificate is valid, to the extent it has taxable income under the EIT Law, and as long as it maintains the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. PRC Withholding Income Tax on Dividends The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a FIE in China to its immediate holding company in Hong Kong can be subject to withholding tax at a rate of no more than 5% if the immediate holding company in Hong Kong owns directly at least 25% of the shares of the FIE and could be recognized as a Beneficial Owner of the dividend from PRC tax perspective. As of December 31, 2021 and 2022, the Company did not record any withholding tax on the retained earnings of its subsidiaries in the PRC as the Group does not have any plan to require its PRC subsidiaries to distribute their retained earnings and intends to retain them to operate and expand its business in the PRC. United States The Company’s subsidiary in California, United States is subject to U.S. federal corporate tax and California corporate franchise tax on its taxable income as reported in its statutory financial statements adjusted in accordance with relevant U.S. tax laws. The applicable U.S. federal corporate tax rate is 21% and the California corporate franchise tax rate is 8.84% or minimum of $0.8, whatever is larger in 2020,2021 and 2022. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax (“BEAT”), a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carry-forwards created in tax years beginning after December 31, 2017. In addition, the California corporate franchise tax remained the same after the enactment of the Tax Act. The Company assessed the impact of Tax Act and concluded that it was not material to the Company. As the Group incurred income tax expense mainly from PRC tax jurisdictions, the following information is based mainly on PRC income taxes. Composition of income tax expense The components of loss before tax are as follow: Year Ended December 31, 2020 2021 2022 US$ US$ US$ Loss before tax Loss from PRC entities (54,776) (150,478) (143,951) Loss from overseas entities (11,930) (24,456) (344) Total loss before tax (66,706) (174,934) (144,295) Year Ended December 31, 2020 2021 2022 US$ US$ US$ Current income tax expense 206 490 1,880 Deferred income tax — — — Total income tax expense 206 490 1,880 Reconciliation of the differences between statutory tax rate and the effective tax rate Reconciliation of the differences between the statutory EIT rate applicable to losses of the consolidated entities and the income tax expenses of the Group: Year Ended December 31, 2020 2021 2022 PRC Statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of tax rates in different tax jurisdiction (2.6) % (2.0) % (0.3) % Income tax on tax holiday(1) (3.0) % (2.2) % (6.0) % Additional deduction for research and development expenditures 8.9 % 7.2 % 8.5 % Share-based compensation (2.1) % (8.4) % (10.5) % Permanent book-tax differences (2.2) % 6.2 % (1.4) % Change in valuation allowance(2) (24.3) % (26.0) % (16.6) % Effective tax rates (0.3) % (0.2) % (1.3) % (1) The income tax on tax holidays represents the effect of preferential income tax rate that the WFOE qualified as an HNTE is entitled to enjoy the beneficial tax rate of 15% . (2) Valuation allowance for the years ended December 31, 2020, 2021 and 2022 are related to the deferred tax assets of certain group entities which reported losses. The Group believes that it is more likely than not that the deferred tax assets of these entities will not be utilized. Therefore, valuation allowance has been provided. Deferred tax assets and deferred tax liabilities The following table sets forth the significant components of the deferred tax assets: As of December 31, 2020 2021 2022 US$ US$ US$ Deferred tax assets Net accumulated losses-carry forward 33,277 76,944 103,231 Payroll liabilities 3,836 5,438 2,915 Inventory write-downs 183 402 691 Receivables allowances 83 171 42 Other deductible temporary difference 26 9 88 Less: valuation allowance (37,405) (82,964) (106,967) Total deferred tax assets — — — As of December 31, 2022, the Group had tax losses carry forwards of approximately US$544,528, which mainly arose from its subsidiaries established in the PRC. These tax losses carry forwards from PRC entities will expire during the period from 2023 to 2032 as follows: At December 31, 2022 US$ 2023 115 2024 238 2025 62,589 2026 111,126 2027 51,577 2028 33,544 2029 71,988 2030 39,414 2031 36,357 2032 107,533 Total tax losses carry forwards 514,481 Movement of valuation allowance As of December 31, 2020 2021 2022 US$ US$ US$ Balance at beginning of the year 21,205 37,405 82,964 Changes of valuation allowance(1) 16,200 45,559 24,003 Balance at end of the year 37,405 82,964 106,967 (1) Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group evaluates a variety of factors including the Group’s entities’ operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2021 and 2022, full valuation allowances on deferred tax assets were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards and other temporary tax difference generated by its unprofitable subsidiaries and the VIE. |
Basic and Diluted Net Loss per
Basic and Diluted Net Loss per Share | 12 Months Ended |
Dec. 31, 2022 | |
Basic and Diluted Net Loss per Share | |
Basic and Diluted Net Loss per Share | 18. Basic and Diluted Net Loss per Share Basic and diluted loss per share have been calculated in accordance with ASC 260 on computation of earnings (loss) per share for each of the year ended December 31, 2020, 2021 and 2022 are calculated as follows: Year Ended December 31, 2020 2021 2022 US$ US$ US$ Basic and diluted net loss per share calculation Numerator: Net loss attributable to Tuya Inc.’s ordinary shareholders, basic and diluted (66,912) (175,424) (146,175) Denominator: Weighted-average ordinary shares outstanding, basic and diluted 221,980,000 489,149,533 553,527,529 Net loss per share attributable to ordinary shareholders: Basic (0.30) (0.36) (0.26) Diluted (0.30) (0.36) (0.26) The following ordinary shares equivalent were excluded from the computation of diluted net loss per ordinary share for the periods presented because including them would have had an anti-dilutive effect: As of December 31, 2020 2021 2022 Preferred Shares-weighted shares 278,163,799 — — Share option and RSU-weighted shares 44,743,156 61,989,697 65,349,350 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 19. Commitments and Contingencies (a) Capital and other commitments There are no future minimum capital commitments as of December 31, 2021 and 2022. (b) Operating lease commitment The Group had outstanding commitments on several non-cancellable operating lease agreements. Operating lease commitment within one year or less lease term, for which the Group elected not recognize any lease liability or right-of-use asset, therefore not yet reflected in the consolidated financial statements as of December 31, 2021 and 2022 were US$99 and US$33, respectively. (c) Services purchase commitment As of December 31, 2021, the Group’s services purchase commitments were as follows: Total Less Than 1 year 1-3 years 3-5 years US$ US$ US$ US$ Purchase obligations(i) 31,771 6,146 15,000 10,625 As of December 31, 2022, the Group’s services purchase commitments were as follows: Total Less Than 1 year 1-3 years 3-5 years US$ US$ US$ US$ Purchase obligations(i) 24,604 6,479 15,000 3,125 (i) Purchase obligations represent US$31,771 and US$24,604 of remaining non-cancellable contractual commitments as of December 31, 2021 and 2022, respectively, related to one of the Group’s third-party cloud infrastructure agreements, under which the Group committed to spend an aggregate of at least US$37,500 between June 1, 2021 and May 31, 2026 with minimum purchase commitment. The Group had made payments totalling US$5,729 and US$15,774 under this agreement as of December 31, 2021 and 2022, respectively. (d) Contingencies On August 9, 2022, the Company and certain of its current and former officers and directors were named as defendants in a putative securities class action filed in the United States District Court for the Southern District of New York, alleging that certain material misstatements and/or omissions were made in the Company’s March 2021 U.S. IPO registration statement. As of April 26, 2023, the case remained in its preliminary stage and the Group was unable to predict the outcome of the case, or reasonably estimate a range of possible loss, if any, given the current status of the case. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any material liability in this regard for the above action as of December 31, 2022 and April 26, 2023. Other than as disclosed above, as of December 31, 2021 and 2022 and April 26, 2023, the Group was not involved in any legal or administrative proceedings that the Group believes may have a material adverse impact on the Group’s business, balance sheets or results of operations and cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | 20. Related Party Transactions The related parties with which the Group had transactions during the years presented are as follows: Name of related party Relationship with the Group Wang Xueji and other four individuals Registered Shareholders Tencent Group (including Tencent Mobility Limited and Image Frame Investment (HK) Limited. After November 1, 2022, Tencent Group is a related party of the Company) Principal shareholder of the Group Details of amounts due from/to related parties as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 US$ US$ Receivables from shareholders (1) — — Prepaid cloud service fee to Tencent Group (2) — 97 Cloud-related technical services fee due to Tencent Group (2) 669 306 (1) On December 30, 2020, the Company received the subscription amount for ordinary shares issued of US $10 from the Registered Shareholders. There was no related party transaction for the years ended December 31, 2021 and 2022. (2) Tencent Cloud Computing (Beijing) Co., Ltd., under the control of Tencent Group, provided the Company with cloud services and other cloud-related technical services. From November 1, 2022 to December 31, 2022, the purchase of cloud service from Tencent Group amounted to US $262 . There is no cloud-related technical services transaction from November 1, 2022 to December 31, 2022. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events | |
Subsequent Events | 21. Subsequent Events The Group has evaluated subsequent events through April 26, 2023, which is the date these consolidated financial statements are issued, with no material events or transactions needing recognition or disclosure found. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2022 | |
Statutory Reserves and Restricted Net Assets | |
Statutory Reserves and Restricted Net Assets | 22. Statutory Reserves and Restricted Net Assets Relevant PRC laws and regulations permit payments of dividends by the Group’s entities incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Group’s entities in the PRC are required to annually appropriate 10% of their net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of their respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the Group’s entities and the VIE subsidiary incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion as calculated under U.S. GAAP amounted to US$283,655 and US$392,612 as of December 31, 2021 and 2022. There are no significant differences between U.S. GAAP and PRC accounting standards in connection with the reported net assets of the legally owned subsidiaries in the PRC and the VIE. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. Except for the above, there is no other restriction on use of proceeds generated by the Group’s subsidiaries and the VIE to satisfy any obligations of the Company. For the year ended December 31, 2022, the Company performed a test on the restricted net assets of subsidiaries and VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets exceeded 25% of the consolidated net assets of the Company as of December 31, 2022 and the condensed financial information of the Company (referred to as the “Parent Company” below) are required to be presented. Condensed Financial Information of the Parent Company (All amounts in US$ thousands (“US$”), except for share and per share data, unless otherwise noted) Balance Sheet As of December 31, 2021 2022 ASSETS Current assets: Cash and cash equivalents 15,833 4,685 Amounts due from subsidiaries 346,859 318,017 Prepayments and other current assets 13,345 596 Total current assets 376,037 323,298 Non-current assets: Investment in subsidiaries and VIE 753,005 651,044 Total non-current assets 753,005 651,044 Total assets 1,129,042 974,342 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Accruals and other current liabilities 6,897 5,171 Other non-current liabilities 8,484 7,004 Total liabilities 15,381 12,175 Shareholders’ equity: Ordinary shares (US$0.00005 par value; nil shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively) — — Class A ordinary shares (US$0.00005 par value; 600,000,000 and 800,000,000 shares authorized as of December 31, 2021 and 2022, respectively; 491,846,560 and 499,146,560 shares issued as of December 31, 2021 and 2022, respectively; 480,241,752 and 473,550,229 shares outstanding as of December 31, 2021 and 2022, respectively) 25 25 Class B ordinary shares (US$0.00005 par value; 200,000,000 and 200,000,000 shares authorized as of December 31, 2021 and 2022, respectively; 79,400,000 and 79,400,000 shares issued outstanding 4 4 Treasury stock (US$0.00005 par value; 11,604,808 and 25,596,331 shares as of December 31, 2021 and 2022, respectively) (46,930) (86,438) Additional paid-in capital 1,526,140 1,584,764 Accumulated other comprehensive income/(loss) 2,320 (22,115) Accumulated deficit (367,898) (514,073) Total shareholders’ equity 1,113,661 962,167 Total liabilities and shareholders’ equity 1,129,042 974,342 Statement of Comprehensive Loss Year Ended December 31, 2020 2021 2022 Operation expense General and administrative expenses (784) (2,927) (3,013) Share of loss of subsidiaries and VIE (66,982) (174,455) (146,417) Other operating expenses, net (7) — — Total operating expenses (67,773) (177,382) (149,430) Other non-operating income, net — 1,958 2,904 Financial income, net 861 — 197 Foreign exchange gain — — 154 Loss before income tax expense (66,912) (175,424) (146,175) Net loss (66,912) (175,424) (146,175) Net loss attributable to ordinary shareholders (66,912) (175,424) (146,175) Net loss (66,912) (175,424) (146,175) Other comprehensive income/(loss) Foreign currency translation 2,882 1,482 (14,942) Changes in fair value of long-term investments — 357 (9,493) Total comprehensive loss (64,030) (173,585) (170,610) Statement of Cash Flows As of December 31, 2020 2021 2022 Net cash generated from/(used in) operating activities 498 11,255 (1,408) Advance to, and investment in subsidiaries (151,719) (1,037,244) — Proceeds from subsidiaries — — 28,842 Net cash (used in)/generated from investing activities (151,719) (1,037,244) 28,842 Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance — 904,732 — Payment for repurchase of ordinary shares — (64,000) (48,678) Proceeds from issuance of Class A ordinary shares upon the Dual Primary Listing, net of cost of issuance — — 9,057 Proceeds from issuance of ordinary shares prior to Initial Public Offering — 200,000 — Proceeds from exercise of share options — 1,070 1,039 Subscription contributions from shareholders 10 — — Net cash generated from/(used in) financing activities 10 1,041,802 (38,582) Effect of exchange rate changes on cash and cash equivalents, restricted cash — — — Net (decrease)/ increase in cash and cash equivalents (151,211) 15,813 (11,148) Cash and cash equivalents at the beginning of the year 151,231 20 15,833 Cash and cash equivalents at the end of the year 20 15,833 4,685 |
Principal Accounting Policies (
Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Principal Accounting Policies | |
Basis of Preparation | (a) Basis of Preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principal accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Basis of Consolidation | (b) Basis of Consolidation The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, and the VIE have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly: (1) controls more than one half of the voting power; (2) has the power to appoint or remove the majority of the members of the board of directors; (3) casts a majority of votes at the meeting of the board of directors; or (4) governs the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. The Company applies the guidance codified in Accounting Standard Codification 810, Consolidations (“ASC 810”) on accounting for the VIE, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. A VIE is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns, or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor. |
Use of Estimates | (c) Use of Estimates The preparation of the Group’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, long-lived assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to impairment provision for inventories, valuation allowance for deferred tax assets, stand-alone selling prices (SSP) for each distinct performance obligation, the valuation of ordinary shares and share-based compensation. Estimates are based on historical experiences and on various assumptions that the Group believes are reasonable under current circumstances. As of December 31, 2021 and 2022, the Group considered the economic implications of the COVID-19 on its significant judgments and estimates. Given that changes in circumstances, facts and experience may cause the Group to revise its estimates, actual results could differ materially from those estimates. |
Functional Currency and Foreign Currency Translation | (d) Functional Currency and Foreign Currency Translation The Group uses United States dollar as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Cayman Islands and Hong Kong is the United States dollar, while the functional currency of the Group’s other subsidiaries and VIE is their respective local currency as determined based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive loss as foreign exchange related gains or loss. The financial statements of the Group’s entities using functional currency other than US$ are translated from the functional currency to the reporting currency, US$. Assets and liabilities of the Group’s subsidiaries incorporated in PRC are translated into US$ at fiscal year-end exchange rates, while income and expense items are translated at average exchange rates prevailing during each period presented, representing the index rates stipulated by the People’s Bank of China. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity on the consolidated financial statements. |
Fair Value Measurements | (e) Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: ● Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. ● Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. ● Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group mainly consist of cash and cash equivalents, restricted cash, short-term investments, account receivables, notes receivable, certain other current assets, long-term investments, trade payables and certain accruals and other liabilities. As of December 31, 2021 and 2022, except for short-term investments, debt securities and equity securities with readily determinable fair value included in long-term investments, the carrying values of these financial instruments approximated their fair values due to their short-term maturity. The Group reports equity securities with readily determinable fair value included in short-term investments at fair value and discloses the fair value of these investments based on level 1 measurement. The Group reports time deposits and wealth management products included in short-term investments and the derivative instruments included in prepayment and other current asset at fair value, and discloses their fair value based on level 2 measurement. The Group reports equity securities with readily determinable fair value included in long-term investments at fair value and discloses the fair value of these investments based on level 2 measurement. The Group reports investment in available-for-sale debt securities included in long-term investments at fair value and discloses the fair value of these investments based on level 3 measurement. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: Fair value measurement at reporting date using Fair value Quoted Prices in Active Significant as of Markets for Identical Significant Other Unobservable December 31, Assets Observable Inputs Inputs Description 2021 (Level 1) (Level 2) (Level 3) Assets: Short-term investments 102,134 4,624 97,510 — Derivative instruments 74 — 74 — Long-term investments 26,078 — 495 25,583 128,286 4,624 98,079 25,583 Fair value measurement at reporting date using Fair value Quoted Prices in Active Significant as of Markets for Identical Significant Other Unobservable December 31, Assets Observable Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Assets: Short-term investments 821,134 2,249 818,885 — Long-term investments 18,031 — 366 17,665 839,165 2,249 819,251 17,665 The roll forward of major Level 3 investments are as follows: US$ Fair value of Level 3 investments as of December 31, 2020 — New addition 25,226 The change in fair value of the investments 357 Fair value of Level 3 investments as of December 31, 2021 25,583 New addition 1,575 The change in fair value of the investments (9,493) Fair value of Level 3 investments as of December 31, 2022 17,665 Management determined the fair value of these Level 3 investments based on market approach using various unobservable inputs. The determination of the fair value required significant judgement by management with respect to the assumptions and estimates for the lack of marketability discounts, expected volatility and probability in equity allocation. The significant unobservable inputs adopted in the valuation as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 Unobservable Inputs Expected volatility 37%-69 % 40%-63 % Probability Liquidation scenario:40 % Liquidation scenario:35%-45 % Redemption scenario:40 % Redemption scenario:35%-45 % IPO scenario:20 % IPO scenario:10%-30 % |
Cash and Cash Equivalents | (f) Cash and Cash Equivalents Cash and cash equivalents include cash in bank and time deposits placed with banks or other financial institutions which have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash. |
Restricted Cash | (g) Restricted Cash Restricted cash represents cash that cannot be withdrawn without the permission of third parties. The Group’s restricted cash is substantially cash balance on deposit required by its business partners and commercial banks. The restricted cash balance for the year ended December 31, 2021 was related to deposits for foreign currency forward contracts, and were subsequently released from the restriction in January 2022. |
Short-term Investments | (h) Short-term Investments Short-term investments are comprised of i) time deposits placed with banks with original maturities longer than three months but less than one year, ii) structured deposits and wealth management products issued by banks which contains fixed or variable interest with original maturities within one year, and iii) equity securities with readily determinable fair value which the Group has intention to sell within one year. The time deposits and wealth management products are generally not permitted to be redeemed early or are subject to penalties for redemption prior to maturities. These investments are stated at fair value. Changes in the fair value are reflected in financial income, net in the consolidated statements of comprehensive loss. |
Accounts Receivable, net | (i) Accounts Receivable, net Accounts receivables are presented net of allowance for doubtful accounts. The Group maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Group determines the allowance for doubtful accounts by taking into consideration various factors including but not limited to historical collection experience and creditworthiness of the customers. Accounts receivable balances are written off after all collection efforts have been exhausted. Notes receivable are primarily bank acceptance notes. The Group accepts bank acceptance notes from customers for products sold or services performed in the ordinary course of business. Bank acceptance notes are negotiable instruments with cash settlement from commercial banks within 6 months. Upon receipt of the bank acceptance notes, the Group’s accounts receivable from the customer is derecognized. The bank acceptance notes can also be endorsed to suppliers as settlement of accounts payable. Bank acceptance notes of US$1.4 million, nil, and nil were endorsed to suppliers for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the endorsed bank acceptance notes but yet due were nil and nil, respectively. The Group sells bank acceptance notes to financial institutions without recourse in the normal course of business through factoring arrangements. These bank acceptance notes transferred without recourse were nil, US$13,814 and US$4,620 for the years ended December 31, 2020, 2021 and 2022 respectively, and were derecognized. |
Inventories, net | (j) Inventories, net Inventories are comprised of finished goods, work in process, raw materials and low value consumables and spare parts. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventories, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased. |
Operating Leases | (k) Operating Leases The Group adopted ASC 842, Leases, on January 1, 2019 on modified retrospective basis. The Group determines if an arrangement is a lease at inception. Operating leases are primarily for office and warehouse and are included in operating lease right-of-use assets, net, operating lease liabilities, current and operating lease liabilities, non-current on its consolidated balance sheets. Operating lease right-of-use assets represent the Group’s right to use an underlying asset for the lease term and operating lease liabilities represent obligation to make lease payment arising from the lease. The operating lease right-of-use assets and liabilities are recognized at lease commencement date based on the present value of lease payment over the lease term. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease right-of-use assets also includes any lease payments made and excludes lease incentives. The Group’s lease term may include options to extend or terminate the lease. Renewal options are considered within the operating lease right-of-use assets and liabilities when it is reasonably certain that the Group will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For operating leases with a term of one year or less, the Group has elected not to recognize a lease liability or lease right of use asset on its consolidated balance sheets. Instead, it recognizes the lease payment as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements of comprehensive loss. The Group has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as single lease component. |
Internal-Use Software Development Costs | (l) Internal-Use Software Development Costs The Group recognizes its internal-use software development costs related to its IoT cloud platform functions, including related website, software and mobile applications in accordance with ASC 350-50 ”Website development costs” and ASC 350-40 ”Internal-use software”. Costs related to preliminary project activities and post-implementation operating activities are expensed as incurred. Cost capitalized for developing IoT cloud platform functions were not material for the periods presented. |
Property, Equipment and Software | (m) Property, Equipment and Software Property, equipment and software are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Depreciation and amortization is computed using the straight-line method over the following estimated useful lives, taking into account any estimated residual value: Leasehold improvements the shorter of their useful lives and the lease terms Computers and electronic equipment 3 years Office equipment 3 years Software 3 years Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and improvements that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. The Group recognized the gain or loss on the disposal of property, equipment and software in the consolidated statements of comprehensive loss. Construction in progress represents assets under construction. Construction in progress is transferred to property, equipment and software and depreciation or amortization commences when an asset is ready for its intended use. |
Long-term Investments | (n) Long-term Investments Long-term investments represent the Group’s equity security investments and debt security investments in the periods presented. Equity securities without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in financial income, net in the consolidated statements of comprehensive loss. Debt security investments that have readily determinable fair value, are accounted for as available-for-sale security investments and are recognized based on trade date and carried at estimated fair value with the aggregate unrealized gains and losses related to these investments, net of taxes, reported through other comprehensive income in the consolidated statements of comprehensive loss. |
Impairment of Long-lived Assets | (o) Impairment of Long-lived Assets For other long-lived assets including property, equipment and software and other non-current assets, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Value Added Taxes | (p) Value Added Taxes The Group’s subsidiaries and the VIE in the PRC are subject to value-added taxes (“VAT”) on its products and services, less any deductible VAT the Group has already paid or borne. They are also subject to surcharges on VAT payments in accordance with PRC law. VAT is not included in the revenue recognized for the Group. The Company’s two subsidiaries, Hangzhou Tuya Information Technology Co., Ltd. and Zhejiang Tuya Smart Electronics Co., Ltd. obtained their software copy certificate in July and December 2020, respectively, and are eligible for the VAT refund-upon-collection policy, which entitles Hangzhou Tuya Information Technology Co., Ltd. and Zhejiang Tuya Smart Electronics Co., Ltd. to receive relevant refunds for the amount of VAT in excess of 3% of its actual tax burden upon completion of relevant the VAT refund filling process. The VAT refund received is recorded in other operating incomes, net in the consolidated statements of comprehensive loss. For the years ended December 31, 2020, 2021 and 2022, VAT refunds received by the Company was US$303, US$8,919 and US$6,211, respectively. |
Revenue Recognition | (q) Revenue Recognition The Group accounts for revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606) for all periods presented. According to ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group determines revenue recognition through the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. The Group allocates the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recorded net of value-added tax. The Group’s revenue was disaggregated by its major revenue streams in the years presented as follows: Year Ended December 31, 2020 2021 2022 US$ US$ US$ IoT PaaS 151,677 261,360 152,914 Smart device distribution 22,071 22,153 25,446 SaaS and others 6,126 18,563 29,812 Total revenue 179,874 302,076 208,172 I. Revenue from IoT PaaS IoT PaaS combines cloud-based connectivity and basic IoT services, edge capabilities (embedded in modules), app development, and device optimization solutions. The Company determined there are two distinct performance obligations in the delivery of IoT PaaS products including: (1) IoT PaaS products with edge capabilities, app development and device optimization solutions, and; (2) cloud-based connectivity and basic IoT services provided to customers and end consumers. The Group allocates the transaction price to each performance obligation based on their relative standalone selling price. The standalone selling price for IoT PaaS products is estimated based on the competitor’s pricing for similar products in the market, adjusted for entity-specific factors. As the standalone selling price of the cloud-based connectivity and basic IoT services is not directly observable, it is estimated by the Group by using an expected cost plus a margin approach. Key areas of judgment include the selection of relevant cloud and other costs necessary to satisfy the performance obligation and estimated profit margins. For the delivery of IoT PaaS product, revenue is recognized when IoT PaaS products are accepted by customers, which is the point that control of the product is transferred to the customers. A receivable is recognized when the IoT PaaS products are delivered and accepted by customers as this is the point in time that the consideration is unconditional. For cloud-based connectivity and basic IoT services, revenue is deferred and subsequently recognized from the end consumer’s activation to the end of the estimated IoT PaaS product’s life cycle on a straight-line basis. Based on the Group’s historical information, activation occurs, on average, an estimated 6 months after the IoT PaaS products are delivered to customers. The length of life cycle of the IoT PaaS products is estimated based on the historical data in previous years and by referencing the life cycle of different smart devices (e.g. lighting, security and monitoring devices) which ranged from 1.5 Return allowances for IoT PaaS products are estimated based on historical experiences and accounted for as reduction of net revenue. The Group provides sales rebates to its customers from time to time, which is accounted for as reduction of net revenue. The Group started a membership program (the “2019 Membership Program”) in the fourth quarter of 2019. In the 2019 Membership Program, customers pay a fixed fee in exchange for IoT PaaS discount, VIP technical support, valued added services (“VAS” i.e., customized app development), and free participation in promotional activities. The promise to provide for technical support related services, the promotion related services and VAS are considered immaterial promises in the contract and are not considered distinct performance obligations. The membership fee is refundable if the volume requirements are met when the membership period ends. The Group historically generally refunds the membership fees even if the volume requirements are not met. Therefore, the Group does not expect being able to keep any of the membership fees and such fees are recorded as a refund liability under the 2019 Membership Program. The Group launched a new membership program (the “2020 Membership Program”) in the fourth quarter of 2020 and no longer offered 2019 Membership Program ever since. In the 2020 Membership Program, customers pay a non-refundable fixed fee in exchange for member-exclusive IoT PaaS discounts within the membership period of typically 12 months. The Group records the upfront fixed membership fee as a deferred revenue and recognizes revenue on a straight-line basis typically over the 12 II. Revenue from smart device distribution In certain circumstances, the Group offers select brands, primarily customers who prefer not to deal with multiple OEMs, an option to purchase directly from the Group finished smart devices where IoT PaaS is deployed. After the brands place purchase orders directly with the Group, the Group then sources the appropriate smart devices from OEMs based on the type of devices, hardware specifications and other metrics. The Group determines that there are two distinct performance obligations for its smart device distribution including the (1) smart devices embedded with IoT PaaS; and (2) cloud-based connectivity and basic IoT services. The transaction price allocation and revenue recognition are the same as the revenue from IoT PaaS. The Group presents the revenue generated from its smart device distribution on a gross basis as the Group has control of the smart devices before they are transferred to the brand customers. In making this determination, the Group concludes it meets the principles of control and that it is the primary obligor to the brand customers, are subject to inventory risk and have latitude in establishing prices. III. Revenue from SaaS and others SaaS and other revenue mainly include industry SaaS, customized software development and configuration, and other VAS to both business customers and the end consumers. Industry SaaS is a vertical-focused software solution that enables businesses to easily and securely deploy, connect, and manage large numbers of smart devices for which the Group generally charges an annual subscription fee. These services include software authorization and standard SaaS platform maintenances and technical support. Customized software development and configuration mainly relate to contracts for the specific IT needs of the brands. The contracts generally include fixed milestone payments determined based on expected labor hours to complete the milestone. VAS primarily includes complementary services that are provided to brands and OEMs such as app launch, AI-powered virtual voice assistants, and data analytics and others. Such arrangements with the customers are short term and the performance obligations are satisfied at one point of time. VAS also include cloud-based services for the end customers such as IoT data storage, push messaging, object detection and digital content. There are different kinds of contracts included in the SaaS and others, and each contract may contain multiple elements. The Group identifies the distinct performance obligations and allocates transaction price to each distinct performance obligation based on relative estimated standalone selling price. Revenue is recognized when the performance obligations are satisfied, which is either over the period of time in which the Group performs these services or at one point of time. Remaining performance obligations The remaining performance obligations primarily relate to the Group’s provision of i) cloud-based connectivity and basic IoT services; ii) membership services; and iii) SaaS and others, and all three of them are included in deferred revenue. The amounts allocated to the cloud-based connectivity and basic IoT services are deferred and recognized on a straight-line basis over the estimated IoT PaaS product’s life cycle. The Group apportions deferred revenue between current and non-current based upon cloud-based connectivity and basic IoT services to be provided over the life cycle of smart devices. Deferred revenue relating to the Group’s cloud services that have an expiration date of less than 12 months are classified as current, otherwise non-current. Starting from the fourth quarter of 2020, there are i) upfront fixed membership fee received and recorded as part of the deferred revenue, it is recognized as revenue on a straight-line basis typically over the 12 12 As of December 31, 2021 and 2022, the aggregate amount of transaction price allocated to the remaining performance obligations was US$10,113 and US$7,215, respectively, of which US$9,254 and US$6,821 were recorded in current deferred revenue while US$859 and US$394 were recorded in non-current deferred revenue, respectively. The Group’s contract liability, including both deferred revenue and advances from customers, is US$41,201 and US$34,848 as of December 31, 2021 and 2022, respectively. The Group applies the practical expedient to omit disclosure of information about the transaction price allocated to remaining performance obligations and when revenue will be recognized, for contracts which have a duration of one year or less. The remaining amounts recorded in non-current deferred revenue of US$859 and US$394 as of December 31, 2021 and 2022, respectively, would likely be recognized within 18 to 36 months. The Group provides warranty for IoT PaaS and smart device distribution mainly for one year. The Group accrues a warranty reserve for all IoT PaaS and smart device distribution, which include the Group’s best estimate of the projected costs to repair or replace items under warranties. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. These estimates are inherently uncertain given the Group’s relatively short history of sales, and changes to the historical or projected warranty experience may cause material changes to the warranty reserve when the Group accumulates more actual data and experience in the future. The warranty reserve expected to be incurred is included within accruals and other liabilities in the consolidated balance sheets. |
Advances from Customers | (r) Advances from Customers Amounts recorded in the advances from customers account represent cash payments made upfront by the Group’s customers under each sales contract. These amounts are not yet reclassed to the deferred revenue account because the Group has not started to fulfil any of its performance obligations identified under the contract at the time. The amounts in the advances from customers are reclassified to either revenue or deferred revenue when the Group commences fulfilment of its performance obligation, depending on whether respective revenue is to be recognized at one point of time or over the period of time. If the Group fulfils its performance obligation at one point of time, the related amount in the advance from customers will be reclassified and recognized as revenue; whereas for the performance obligation that the Group starts to provide over the period of time, the amount in the advances from customers will be reclassified to deferred revenue. |
Cost of Revenues | (s) Cost of Revenues Cost of revenue consists primarily of purchase price of materials, manufacturing charges from outsourced factories, estimated warranty costs, inventories write-downs, payroll cost of production support personnel and third-party cloud infrastructure expenses that are directly attributable to the sales of products or services rendered. Inbound shipping charges to receive raw materials from suppliers are included in the inventories and recognized as cost of revenues upon sale of products and render of services. |
Research and Development Expenses | (t) Research and Development Expenses Research and development expenses consist primarily of payroll cost including share-based compensation expenses for research and development personnel, third-party cloud infrastructure expenses incurred for research and development purposes, rental expenses and depreciation and other expenses in associated with research and development functions. The Group accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. See Note 2(l)— Internal-Use Software Development Costs. |
Sales and Marketing Expenses | (u) Sales and Marketing Expenses Sales and marketing expenses consist primarily of payroll cost including share-based compensation expenses for sales and marketing personnel, promotion and marketing expenses, rental expenses and depreciation and other expenses in associated with sales and marketing functions. Advertising expenses consist primarily of costs for the promotion of the Group’s corporate image and product marketing. The Group expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2020, 2021 and 2022, advertising and marketing costs totalled US$6,300, US$13,637 and US$5,355, respectively. |
General and Administrative Expenses | (v) General and Administrative Expenses General and administrative expenses consist primarily of payroll cost including share-based compensation expenses for corporate personnel, general office expenses, rental expenses and depreciation and other expenses in associated with general and administrative functions. |
Government Grants | (w) Government Grants Government grants are recognized as other operating incomes, net, or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of comprehensive loss upon receipts as all conditions attached to the grants are fulfilled. Government grants included as other operating incomes, net in the consolidated statements of comprehensive loss amounted to US$1,299, US$10,423 and US$10,350 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Employee Social Security and Welfare Benefits | (x) Employee Social Security and Welfare Benefits Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Employee social security and welfare benefits included as expenses in the consolidated statements of comprehensive loss amounted to US$14,715, US$42,944 and US$44,505 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Income Taxes | (y) Income Taxes Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group has considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. The Group’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Group recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the-more-likely-than-not recognition threshold, the Group initially and subsequently measures the tax benefit as the largest amount that the Group judges to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The Group’s liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The Group’s effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Group classifies interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. For the years ended December 31, 2020, 2021 and 2022, there were no uncertain tax position liabilities. |
Share-based Compensation | (z) Share-based Compensation The Company grants restricted shares to the Registered Shareholders (also as key member of management), share options and Restricted Share Units (“RSUs”) of the Company to eligible employees and non-employees. The Company accounts for these share-based awards in accordance with ASC 718 Compensation-Stock Compensation. The Registered Shareholders and employees’ share-based awards are measured at the grant date fair value of the awards and recognized as expenses using a straight-line method over the requisite service period, which is the vesting period. For share-based awards granted with only service conditions to its PRC employees, the Group allows accelerated full vesting upon occurrence of a Change in Control (including defined in the Group’s Equity Incentive Plan), cumulative share-based compensation expenses for the share-based awards should be recorded upon the completion of the Change in Control. For non-employees’ share-based awards, the Group adopted ASU 2018-07 ”Improvements to Nonemployee Share-Based Payment Accounting” for the periods presented. In accordance with ASU 2018-07, it clarifies that equity-classified non-employee share-based awards are measured at the grant date. The definition of the term grant date is amended to generally state the date at which a grantor and a grantee reach a mutual understanding of the key terms and conditions of a share-based payment award. Non-employee share-based awards are measured at the grant date fair value of the awards and recognized as expenses using a straight-line method over the requisite service period, which is the vesting period. The binomial option-pricing model is used to measure the value of share options. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee and nonemployee share option exercise behaviour, risk-free interest rates and expected dividend yield. Binomial option-pricing model incorporates the assumptions about grantees’ future exercise patterns. The fair value of these awards was determined by management with the assistance from an independent valuation firm using management’s estimates and assumptions. The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive share-based awards. In accordance with ASU 2016-09, the Group made an entity-wide accounting policy election to account for forfeitures when they occur. |
Treasury stocks | (aa) Treasury stocks Treasury stocks are accounted for using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stocks account on the consolidated balance sheets. When the Company reissues treasury stock at an amount greater or less than it paid to repurchase the shares, the realized gain or loss is recognized in the consolidated statements of changes in shareholders’ equity/(deficit). |
Loss per Share | (ab) Loss per Share Basic loss per share is computed by dividing net 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, the net loss is allocated between ordinary shares and other participating securities based on their participating rights. Net loss is not allocated to other participating securities if based on their contractual terms they are not obligated to share in the loss. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method. |
Comprehensive Loss | (ac) Comprehensive Loss Comprehensive 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 from shareholders and distributions to shareholders. Comprehensive loss for the periods presented includes net loss and foreign currency translation adjustments. |
Segment Reporting | (ad) Segment Reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision maker in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. As the Group’s long-lived assets are substantially located in the PRC and substantially all the Group’s revenue are derived from within the PRC, no geographical segments are presented. Hence, the Group has only one operating segment and one reportable segment. |
Recently Issued Accounting Pronouncements | (ae) Recently Issued Accounting Pronouncements The Group qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Group adopts the following standards based on extended transition period provided to private companies or early adopts as necessary as permitted by the respective standards. New and Amended Standards Adopted by the Group In January 2020, the FASB issued ASU 2020-01 Investments—Equity securities (Topic 321), Investments—Equity method and joint ventures (Topic 323), and Derivatives and hedging (Topic 815)—Clarifying the interactions between Topic 321, Topic 323, and Topic 815. The amendments clarified that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments also clarified that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in paragraph 815-10-15-141 to determine the accounting for those forward contracts and purchased options. ASU 2020-01 is effective for fiscal years and interim periods beginning after December 15, 2021 for the Group. Early adoption is permitted. The impact of the adoption was not material. In November 2021, the FASB issued ASU 2021-10, Disclosures by Business Entities about Government Assistance (Topic 832). The amendment requires a business entity to provide certain disclosures when it has entered into a legally enforceable agreement with a government to receive value, and accounts for the transaction using a grant or contribution accounting model by analogy. ASU 2021-10 is effective for fiscal years beginning after December 15, 2021 for all business entities. The impact of the adoption was not material. New and Amended Standards not yet Adopted by the Group In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), to provide financial statement users with more useful information about expected credit losses. ASU 2016-13 also changes how entities measure credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2022 for the Group, with early adoption permitted. The FASB further issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments- Credit Losses, ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, ASU 2019-10, Financial Instruments-Credit Losses (Topic 326): Effective Dates, and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. The amendments in these ASUs provide clarifications to ASU 2016-13. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses, Troubled Debt Restructurings and Vintage Disclosures. The new standard requires that an entity apply the loan refinancing and restructuring guidance in ASC 310 to all loan modifications and/or receivable modifications. It also enhances disclosure requirements for certain refinancing and restructurings by creditors when a borrower is experiencing financial difficulty and requires disclosure of current-period gross charge-offs by year of origination in the vintage disclosure. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Group has determined that the impact of this new guidance on its consolidated financial statements is not expected to be material. |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization and principal activities | |
Summary of Company's principal subsidiaries and consolidated VIE | As of December 31, 2021 and 2022, the Company’s principal subsidiaries and consolidated VIE are as follows: Date of Place of Percentage of direct Principal Name of subsidiaries incorporation incorporation or indirect ownership activities December 31, 2021 2022 Tuya (HK) Limited September 12, 2014 Hong Kong, China 100 % 100 % Investment holding and business development Hangzhou Tuya Information Technology Co., Ltd. December 5, 2014 Hangzhou, China 100 % 100 % Sales of IoT PaaS, Smart devices, SaaS and Others and research and development Tuya Smart Inc. July 19, 2019 Delaware, United States 100 % 100 % Business development Tuya Global Inc. July 22, 2015 California, United States 100 % 100 % Business development Tuya smart (India) Private Limited January 31, 2019 Gurgaon, India 100 % 100 % Business development Tuya smart (Colombia) S.A.S July 2, 2019 Medellin, Colombia 100 % 100 % Business development Tuya GmbH May 13, 2019 Hamburg, Germany 100 % 100 % Business development Tuya Japan Co., Ltd. January 23, 2019 Tokyo, Japan 100 % 100 % Business development Zhejiang Tuya Smart Electronics Co., Ltd. May 9, 2020 Hangzhou, China 100 % 100 % Sales of Smart devices Date of Place of Economic Principal Name of VIE incorporation incorporation interest held activities December 31, 2021 2022 Hangzhou Tuya Technology Co., Ltd. June 16, 2014 Hangzhou, China 100 % 100 % No substantial business |
Principal Accounting Policies_2
Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Principal Accounting Policies | |
Schedule of assets and liabilities that are measured at fair value on a recurring basis | Fair value measurement at reporting date using Fair value Quoted Prices in Active Significant as of Markets for Identical Significant Other Unobservable December 31, Assets Observable Inputs Inputs Description 2021 (Level 1) (Level 2) (Level 3) Assets: Short-term investments 102,134 4,624 97,510 — Derivative instruments 74 — 74 — Long-term investments 26,078 — 495 25,583 128,286 4,624 98,079 25,583 Fair value measurement at reporting date using Fair value Quoted Prices in Active Significant as of Markets for Identical Significant Other Unobservable December 31, Assets Observable Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Assets: Short-term investments 821,134 2,249 818,885 — Long-term investments 18,031 — 366 17,665 839,165 2,249 819,251 17,665 |
Schedule of roll forward of major Level 3 investments | US$ Fair value of Level 3 investments as of December 31, 2020 — New addition 25,226 The change in fair value of the investments 357 Fair value of Level 3 investments as of December 31, 2021 25,583 New addition 1,575 The change in fair value of the investments (9,493) Fair value of Level 3 investments as of December 31, 2022 17,665 |
Schedule of significant unobservable inputs adopted in the valuation | As of December 31, 2021 2022 Unobservable Inputs Expected volatility 37%-69 % 40%-63 % Probability Liquidation scenario:40 % Liquidation scenario:35%-45 % Redemption scenario:40 % Redemption scenario:35%-45 % IPO scenario:20 % IPO scenario:10%-30 % |
Schedule of property, plant and equipment estimated useful life | Leasehold improvements the shorter of their useful lives and the lease terms Computers and electronic equipment 3 years Office equipment 3 years Software 3 years |
Disaggregated major revenue | Year Ended December 31, 2020 2021 2022 US$ US$ US$ IoT PaaS 151,677 261,360 152,914 Smart device distribution 22,071 22,153 25,446 SaaS and others 6,126 18,563 29,812 Total revenue 179,874 302,076 208,172 |
Risks and Concentration (Tables
Risks and Concentration (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Concentration | |
Summary of customers with greater than 10% of the accounts receivable and suppliers contributed more than 10% of total purchases | As of December 31, 2021 2022 Customer A 19 % * * Year ended December 31, 2020 2021 2022 Supplier A 13 % 25 % 15 % |
Short-term Investment (Tables)
Short-term Investment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short-term Investment | |
Summary of short term investments | As of December 31, 2021 2022 US$ US$ Time deposits 97,510 818,885 Equity securities with readily determinable fair value (2) 4,624 2,249 Wealth management products (1) — — Total short-term investments 102,134 821,134 (1) For the years ended December 31, 2021 and 2022, the Group’s wealth management products mainly consisted of financial products issued by commercial banks in China with a variable interest rate indexed to the performance of underlying assets and a maturity date within one year when purchased or revolving terms. For the years ended December 31, 2020, 2021 and 2022, the weighted average return of the wealth management products was 2.9% , 2.7% and 2.6% , respectively. (2) Starting from July 2021, the Group, from time to time, invested in ordinary shares of a listed company and disposed of portion of the investments. For the years ended December 31, 2021 and 2022, the Group recorded fair value losses on short-term equity investment of US $1,998 and US $2,056 in financial income, respectively, net in the consolidated statements of comprehensive loss. For the years ended December 31, 2021 and 2022, the Group recorded US $422 and nil upon disposal of portion of the investments in financial income, net in the consolidated statements of comprehensive loss, respectively. This investment is classified as equity securities with readily determinable fair values. |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, net | |
Summary of accounts receivable, net | As of December 31, 2021 2022 US$ US$ Accounts receivable, gross 34,345 13,955 Less: allowance for doubtful accounts (1,644) (1,783) Total accounts receivable, net 32,701 12,172 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, net | |
Summary of inventories, net | As of December 31, 2021 2022 US$ US$ Raw materials 55,845 44,225 Work in process 3,359 3,237 Finished goods 5,958 4,183 Low value consumables and spare parts 145 153 Less: inventory write-downs (2,725) (6,418) Total inventories, net 62,582 45,380 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Assets | |
Summary of current and non-current portions of prepayments and other assets | As of December 31, 2021 2022 US$ US$ Advance to suppliers 12,529 5,980 VAT recoverable (2) 621 810 Rental deposits 438 527 Receivables from third party payment platforms 175 299 Interest receivable 123 284 Prepayment for share repurchase (1) 10,355 — Professional cost for Dual Primary Listing 3,049 — Others 592 852 Total prepayments and other current assets 27,882 8,752 Rental deposits 1,818 1,179 Total other non-current assets 1,818 1,179 (1) As of December 31, 2021, prepayment for share repurchase represented the advanced payment by the Group to a bank engaged by the Group for the Share Repurchase Program (Note 14). (2) VAT recoverable represented the balances that the Group can utilize to deduct its VAT liabilities within the next 12 months. |
Property, Equipment and Softw_2
Property, Equipment and Software, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Equipment and Software, net | |
Summary of property, equipment and software, net | As of December 31, 2021 2022 US$ US$ Cost: Leasehold improvements 3,092 3,389 Computers and electronic equipment 8,539 7,513 Office equipment 437 229 Software 612 726 Construction in progress — 59 Total cost 12,680 11,916 Less: Accumulated depreciation and amortization (5,875) (8,089) Total property, equipment and software, net 6,805 3,827 |
Long-term Investment (Tables)
Long-term Investment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Investment | |
Schedule of long-term Investment | As of December 31, 2021 2022 US$ US$ Investments in available-for-sale debt securities (1) 25,583 17,665 Investment in an equity security with readily determinable fair values 495 366 Total long-term investments 26,078 18,031 (1) As of December 31, 2021 and 2022, the balance represents the Group’s shareholding interests of several privately held companies. In August 2021, the Group acquired shareholding interest of a privately held company with a cash consideration of RMB20,000 thousand (equivalent to US$3,092). In September 2021, the Group acquired shareholding interest of a privately held company with a cash consideration of RMB5,000 thousand (equivalent to US$774). In October 2021, the Group acquired shareholding interest of a privately held company with a cash consideration of RMB75,000 thousand (equivalent to US$11,713). In December 2021, the Group acquired shareholding interest of a privately held company with total cash consideration of RMB30,640 thousand (equivalent to US$4,672). Prior to the investment, in September 2021, the Group provided a bridge loan to the privately held investee, with principal amount of RMB15,000 thousand (equivalent to US$2,313), which was due within one year. There was a warrant granted to the Group to purchase shares of the customer with pre-agreed valuation cap. This loan arrangement was entered into separately from regular sales business with the customer. In accordance with the bridge loan agreement, the loan was interest free, and the Group was entitled to rights of investments in the customer within certain pre-defined period prior to the loan due dates. In the fourth quarter of 2021, this bridge loan of RMB15,000 thousand (equivalent to US$2,302) was fully converted into an investment in the customer which also included the Group’s additional cash consideration of RMB15,640 thousand (equivalent to US$2,459). There was a realized gain of RMB7,860 thousand (equivalent to US$1,218) recorded in financial income, net for the year ended December 31, 2021 due to the exercise of the warrant. In November 2021, the Group acquired shareholding interest of two privately held companies with cash considerations of RMB3,000 thousand (equivalent to US$467) and RMB10,000 thousand (equivalent to US$1,571), respectively. In December 2021, the Group acquired a shareholding interest of a privately held company with a cash consideration of RMB7,139 thousand (equivalent to US$1,120). In March 2022, the Group acquired a shareholding interest in a privately held company with a cash consideration of RMB10,000 thousand (equivalent to US$1,575). As the Group has the right to request each investee to redeem the Group’s investments at the Group’s investment cost plus interest if the investee fails to meet certain predetermined conditions, the redeemable shares of the investees purchased by the Group were classified as an available-for-sale debt investments and were measured at their respective fair values.For the years ended December 31, 2021 and 2022, the fair value changes of the Group’s investments in these privately held companies were other comprehensive income of US$357 and other comprehensive loss of US$9,493, respectively. |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Leases | |
Summary of components of lease expenses | Year Ended December 31, 2020 2021 2022 US$ US$ US$ Lease cost: Amortization of right-of-use assets 4,022 6,981 4,766 Interest of lease liabilities 396 749 692 Expenses for short-term lease within 12 months 292 501 1,168 Total lease cost 4,710 8,231 6,626 |
Summary of supplemental cash flow information related to leases | Year Ended December 31, 2020 2021 2022 US$ US$ US$ Cash paid for amounts included in the measurement of lease liabilities 4,976 7,920 5,554 Right-of-use assets obtained in exchange for operating lease liabilities 7,047 23,810 884 |
Summary of supplemental consolidated balance sheet information related to leases | As of December 31, 2021 2022 Right-of-use assets 22,181 9,736 Operating lease liabilities-current 5,697 3,850 Operating lease liabilities-non-current 16,048 5,292 Total lease liabilities 21,745 9,142 Weighted-average remaining lease term Operating leases 3.81 years 2.73 years Weighted-average discount rate Operating lease 4.75% per annum 4.75% per annum |
Summary of maturities of lease liabilities | As of December 31, 2021 2022 US$ US$ 2022 6,722 — 2023 6,652 4,200 2024 4,909 2,835 2025 4,888 2,675 2026 646 46 2027 5 4 Total undiscounted lease payments 23,822 9,760 Less: imputed interest (2,077) (618) Total lease liabilities 21,745 9,142 |
Accruals and Other Liabilities
Accruals and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accruals and Other Liabilities | |
Summary of current and non-current portions of accruals and other liabilities | As of December 31, 2021 2022 US$ US$ Accruals and other current liabilities Salary and welfare payable 30,597 16,850 Cloud infrastructure and IT related services fee payables 3,110 3,214 Payment from depositary bank, current (2) 2,611 3,113 Professional service fee payables 5,558 2,036 Deposit payable — 1,436 Advertising and promotion fee payables 4,172 1,078 Sales return allowances 709 1,004 Tax payables 1,796 787 Payables for share repurchase (3) — 716 Membership fee to be refunded (1) 471 388 Product warranty 339 213 Others 1,484 2,548 Total accruals and other current liabilities 50,847 33,383 Other non-current liabilities Payment from depositary bank, non-current (2) 8,484 7,004 Total accruals and other liabilities 59,331 40,387 (1) Membership fee to be refunded presents the balances of refundable membership fee collected by the Group from its customers under the 2019 Membership Program (Note 2(q)). (2) The Company received reimbursement payment of US $13,053 and US $1,926 from a depositary bank in April 2021 and June 2022,respectively. The amount was recorded ratably as other non-operating income over a five-year and 46 months arrangement period, respectively. For the years ended December 31, 2021 and 2022, the Company recorded US $1,958 and US $2,904 in other non-operating income in the consolidated statements of comprehensive loss, respectively. (3) Payables for share repurchase represents the share repurchase consideration to be settled as of December 31, 2022 by the Group to a bank engaged by the Group for the Share Repurchase Program (Note 14). These payables were fully paid subsequently in January 2023. |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Revenue. | |
Summary of deferred revenue | As of December 31, 2021 2022 US$ US$ Deferred Revenue -Cloud-based connectivity and basic IoT services (1) 2,669 1,375 -Membership (2) 3,473 672 -SaaS (3) 3,971 5,168 Total deferred revenue 10,113 7,215 (1) Deferred cloud-based connectivity and basic IoT services related revenue Deferred cloud-based connectivity and basic IoT services related revenue represents the Group’s provision of cloud-based connectivity obligation and basic IoT services to customers. Year Ended December 31, 2020 2021 2022 US$ US$ US$ Beginning balances 777 2,058 2,669 Deferral of revenue 1,781 2,157 872 Recognition of deferred revenue (500) (1,546) (2,166) Ending balances 2,058 2,669 1,375 (2) Deferred Revenue-Membership represents the Group’s remaining performance obligation performed over the period of time under its 2020 Membership Program (Note 2(q)). Year Ended December 31, 2020 2021 2022 US$ US$ US$ Beginning balances — 1,077 3,473 Deferral of revenue 1,229 9,259 2,442 Recognition of deferred revenue (152) (6,863) (5,243) Ending balances 1,077 3,473 672 (3) Deferred Revenue-SaaS Deferred Revenue-SaaS mainly represents the Group’s remaining performance obligation in providing industry SaaS services over the period of time (Note 2(q)). Year Ended December 31, 2020 2021 2022 US$ US$ US$ Beginning balances — 1,040 3,971 Deferral of revenue 1,834 6,455 11,779 Recognition of deferred revenue (794) (3,524) (10,582) Ending balances 1,040 3,971 5,168 |
Financial Income, net (Tables)
Financial Income, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Income, net. | |
Summary of financial income, net | Year Ended December 31, 2020 2021 2022 US$ US$ US$ Interest income and investment income, net (1) 3,073 8,119 20,731 Gain on disposal of long-term investment 147 — — Realized gain of bridge loan conversion to investment — 1,218 — Fair value change of short-term investments — (1,998) (2,056) Fair value change of long-term investments — (53) (129) Total financial income, net 3,220 7,286 18,546 |
Ordinary Shares (Tables)
Ordinary Shares (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary Shares | |
Schedule of activities of the Group's Class A ordinary shares and Class B ordinary shares | Total of Class A ordinary shares and Class B ordinary Class A ordinary shares Class B ordinary shares shares (US $0.00005 par value) (US $0.00005 par value) (US $0.00005 par value) Number of Number of Number of shares issued Amount shares issued Amount shares issued Amount US$ US$ US$ Balance as of December 31, 2021 491,846,560 25 79,400,000 4 571,246,560 29 Issuance of ordinary shares upon the Dual Primary Listing at par value 7,300,000 — — — 7,300,000 — Balance as of December 31, 2022 499,146,560 25 79,400,000 4 578,546,560 29 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation | |
Summary of share options activity | Weighted Weighted Weighted average average average exercise grant date remaining Aggregate Number of price per fair value per contractual intrinsic shares share share term value US$ Outstanding as of December 31, 2019 41,220,000 0.33 0.75 7.49 93,889 Granted 9,705,000 0.42 2.44 Forfeited (2,185,000) 0.62 1.52 Outstanding as of December 31, 2020 48,740,000 0.33 1.05 7.02 591,879 Granted 18,035,000 0.24 12.55 Exercised (5,403,461) 0.14 0.68 Forfeited (1,410,000) 0.31 7.21 Outstanding as of December 31, 2021 59,961,539 0.17 4.40 6.95 364,287 Granted 2,765,000 0.20 3.27 Exercised (4,502,326) 0.20 2.09 Forfeited (1,950,000) 0.47 7.69 Outstanding as of December 31, 2022 56,274,213 0.16 4.42 6.04 98,287 |
Summary of assumptions used to value the Company's options grants | As of December 31, 2020 2021 2022 Exercise price (US Dollar) 0.3~1.08 0.2~2.88 0.2 Exercise multiple 2.2~2.8 2.2~2.8 2.2~2.8 Risk-free interest rate 0.70%~0.82 % 1.13%~1.79 % 1.92%~3.22 % Expected term (in years) 10 10 10 Expected dividend yield — — — Expected volatility 50.66%~50.96 % 50.40%~55.79 % 55.68%~55.78 % Expected forfeiture rate (post-vesting) 3.88 % 2.96%~5.83 % 5.83%~7.70 % Fair value of the underlying shares on the date of options grants (US Dollar) 2.66~3.02 6.25~20.91 2.24~5.46 Fair value of share option (US Dollar) 1.98~2.54 5.78~20.91 2.05~5.27 |
Summary of service - based RSUs activity | Weighted average grant Number of shares date fair value per share Outstanding as of December 31, 2020 — — Granted 3,217,000 8.95 Forfeited (167,000) 11.80 Outstanding as of December 31, 2021 3,050,000 8.80 Granted 10,205,500 2.58 Vested (346,000) 6.68 Forfeited (1,270,750) 7.80 Outstanding as of December 31, 2022 11,638,750 3.51 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of components of income tax expense | Year Ended December 31, 2020 2021 2022 US$ US$ US$ Loss before tax Loss from PRC entities (54,776) (150,478) (143,951) Loss from overseas entities (11,930) (24,456) (344) Total loss before tax (66,706) (174,934) (144,295) Year Ended December 31, 2020 2021 2022 US$ US$ US$ Current income tax expense 206 490 1,880 Deferred income tax — — — Total income tax expense 206 490 1,880 |
Schedule of reconciliation of differences between statutory tax rate and effective tax rate | Year Ended December 31, 2020 2021 2022 PRC Statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of tax rates in different tax jurisdiction (2.6) % (2.0) % (0.3) % Income tax on tax holiday(1) (3.0) % (2.2) % (6.0) % Additional deduction for research and development expenditures 8.9 % 7.2 % 8.5 % Share-based compensation (2.1) % (8.4) % (10.5) % Permanent book-tax differences (2.2) % 6.2 % (1.4) % Change in valuation allowance(2) (24.3) % (26.0) % (16.6) % Effective tax rates (0.3) % (0.2) % (1.3) % (1) The income tax on tax holidays represents the effect of preferential income tax rate that the WFOE qualified as an HNTE is entitled to enjoy the beneficial tax rate of 15% . (2) Valuation allowance for the years ended December 31, 2020, 2021 and 2022 are related to the deferred tax assets of certain group entities which reported losses. The Group believes that it is more likely than not that the deferred tax assets of these entities will not be utilized. Therefore, valuation allowance has been provided. |
Summary of deferred tax assets and deferred tax liabilities | As of December 31, 2020 2021 2022 US$ US$ US$ Deferred tax assets Net accumulated losses-carry forward 33,277 76,944 103,231 Payroll liabilities 3,836 5,438 2,915 Inventory write-downs 183 402 691 Receivables allowances 83 171 42 Other deductible temporary difference 26 9 88 Less: valuation allowance (37,405) (82,964) (106,967) Total deferred tax assets — — — |
Summary of tax losses carry forwarded for future years | At December 31, 2022 US$ 2023 115 2024 238 2025 62,589 2026 111,126 2027 51,577 2028 33,544 2029 71,988 2030 39,414 2031 36,357 2032 107,533 Total tax losses carry forwards 514,481 |
Schedule of movement of valuation allowance | As of December 31, 2020 2021 2022 US$ US$ US$ Balance at beginning of the year 21,205 37,405 82,964 Changes of valuation allowance(1) 16,200 45,559 24,003 Balance at end of the year 37,405 82,964 106,967 (1) Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group evaluates a variety of factors including the Group’s entities’ operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2021 and 2022, full valuation allowances on deferred tax assets were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards and other temporary tax difference generated by its unprofitable subsidiaries and the VIE. |
Basic and Diluted Net Loss pe_2
Basic and Diluted Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Basic and Diluted Net Loss per Share | |
Summary of basic and diluted loss per share | Year Ended December 31, 2020 2021 2022 US$ US$ US$ Basic and diluted net loss per share calculation Numerator: Net loss attributable to Tuya Inc.’s ordinary shareholders, basic and diluted (66,912) (175,424) (146,175) Denominator: Weighted-average ordinary shares outstanding, basic and diluted 221,980,000 489,149,533 553,527,529 Net loss per share attributable to ordinary shareholders: Basic (0.30) (0.36) (0.26) Diluted (0.30) (0.36) (0.26) |
Summary of antidilutive shares excluded from computation of diluted net loss per ordinary share | As of December 31, 2020 2021 2022 Preferred Shares-weighted shares 278,163,799 — — Share option and RSU-weighted shares 44,743,156 61,989,697 65,349,350 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Summary of group's services purchase commitments | As of December 31, 2021, the Group’s services purchase commitments were as follows: Total Less Than 1 year 1-3 years 3-5 years US$ US$ US$ US$ Purchase obligations(i) 31,771 6,146 15,000 10,625 As of December 31, 2022, the Group’s services purchase commitments were as follows: Total Less Than 1 year 1-3 years 3-5 years US$ US$ US$ US$ Purchase obligations(i) 24,604 6,479 15,000 3,125 (i) Purchase obligations represent US$31,771 and US$24,604 of remaining non-cancellable contractual commitments as of December 31, 2021 and 2022, respectively, related to one of the Group’s third-party cloud infrastructure agreements, under which the Group committed to spend an aggregate of at least US$37,500 between June 1, 2021 and May 31, 2026 with minimum purchase commitment. The Group had made payments totalling US$5,729 and US$15,774 under this agreement as of December 31, 2021 and 2022, respectively. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Summary of related parties | Name of related party Relationship with the Group Wang Xueji and other four individuals Registered Shareholders Tencent Group (including Tencent Mobility Limited and Image Frame Investment (HK) Limited. After November 1, 2022, Tencent Group is a related party of the Company) Principal shareholder of the Group As of December 31, 2021 2022 US$ US$ Receivables from shareholders (1) — — Prepaid cloud service fee to Tencent Group (2) — 97 Cloud-related technical services fee due to Tencent Group (2) 669 306 (1) On December 30, 2020, the Company received the subscription amount for ordinary shares issued of US $10 from the Registered Shareholders. There was no related party transaction for the years ended December 31, 2021 and 2022. (2) Tencent Cloud Computing (Beijing) Co., Ltd., under the control of Tencent Group, provided the Company with cloud services and other cloud-related technical services. From November 1, 2022 to December 31, 2022, the purchase of cloud service from Tencent Group amounted to US $262 . There is no cloud-related technical services transaction from November 1, 2022 to December 31, 2022. |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statutory Reserves and Restricted Net Assets | |
Summary of balance sheet | As of December 31, 2021 2022 ASSETS Current assets: Cash and cash equivalents 15,833 4,685 Amounts due from subsidiaries 346,859 318,017 Prepayments and other current assets 13,345 596 Total current assets 376,037 323,298 Non-current assets: Investment in subsidiaries and VIE 753,005 651,044 Total non-current assets 753,005 651,044 Total assets 1,129,042 974,342 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Accruals and other current liabilities 6,897 5,171 Other non-current liabilities 8,484 7,004 Total liabilities 15,381 12,175 Shareholders’ equity: Ordinary shares (US$0.00005 par value; nil shares authorized, issued and outstanding as of December 31, 2021 and 2022, respectively) — — Class A ordinary shares (US$0.00005 par value; 600,000,000 and 800,000,000 shares authorized as of December 31, 2021 and 2022, respectively; 491,846,560 and 499,146,560 shares issued as of December 31, 2021 and 2022, respectively; 480,241,752 and 473,550,229 shares outstanding as of December 31, 2021 and 2022, respectively) 25 25 Class B ordinary shares (US$0.00005 par value; 200,000,000 and 200,000,000 shares authorized as of December 31, 2021 and 2022, respectively; 79,400,000 and 79,400,000 shares issued outstanding 4 4 Treasury stock (US$0.00005 par value; 11,604,808 and 25,596,331 shares as of December 31, 2021 and 2022, respectively) (46,930) (86,438) Additional paid-in capital 1,526,140 1,584,764 Accumulated other comprehensive income/(loss) 2,320 (22,115) Accumulated deficit (367,898) (514,073) Total shareholders’ equity 1,113,661 962,167 Total liabilities and shareholders’ equity 1,129,042 974,342 |
Summary of statement of comprehensive loss | Year Ended December 31, 2020 2021 2022 Operation expense General and administrative expenses (784) (2,927) (3,013) Share of loss of subsidiaries and VIE (66,982) (174,455) (146,417) Other operating expenses, net (7) — — Total operating expenses (67,773) (177,382) (149,430) Other non-operating income, net — 1,958 2,904 Financial income, net 861 — 197 Foreign exchange gain — — 154 Loss before income tax expense (66,912) (175,424) (146,175) Net loss (66,912) (175,424) (146,175) Net loss attributable to ordinary shareholders (66,912) (175,424) (146,175) Net loss (66,912) (175,424) (146,175) Other comprehensive income/(loss) Foreign currency translation 2,882 1,482 (14,942) Changes in fair value of long-term investments — 357 (9,493) Total comprehensive loss (64,030) (173,585) (170,610) |
Summary of statement of cash flows | As of December 31, 2020 2021 2022 Net cash generated from/(used in) operating activities 498 11,255 (1,408) Advance to, and investment in subsidiaries (151,719) (1,037,244) — Proceeds from subsidiaries — — 28,842 Net cash (used in)/generated from investing activities (151,719) (1,037,244) 28,842 Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance — 904,732 — Payment for repurchase of ordinary shares — (64,000) (48,678) Proceeds from issuance of Class A ordinary shares upon the Dual Primary Listing, net of cost of issuance — — 9,057 Proceeds from issuance of ordinary shares prior to Initial Public Offering — 200,000 — Proceeds from exercise of share options — 1,070 1,039 Subscription contributions from shareholders 10 — — Net cash generated from/(used in) financing activities 10 1,041,802 (38,582) Effect of exchange rate changes on cash and cash equivalents, restricted cash — — — Net (decrease)/ increase in cash and cash equivalents (151,211) 15,813 (11,148) Cash and cash equivalents at the beginning of the year 151,231 20 15,833 Cash and cash equivalents at the end of the year 20 15,833 4,685 |
Organization and principal ac_3
Organization and principal activities - Company principal subsidiaries and consolidated VIE (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Tuya (HK) Limited | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Hangzhou Tuya Information Technology Co., Ltd. | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Tuya Smart Inc. | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Tuya Global Inc. | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Tuya smart (India) Private Limited | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Tuya smart (Colombia) S.A.S | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Tuya GmbH | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Tuya Japan Co., Ltd. | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Zhejiang Tuya Smart Electronics Co., Ltd. | ||
Variable Interest Entity [Line Items] | ||
Percentage of direct or indirect ownership | 100% | 100% |
Hangzhou Tuya Technology Co., Ltd. | ||
Variable Interest Entity [Line Items] | ||
Economic interest held | 100% | 100% |
Principal Accounting Policies -
Principal Accounting Policies - Schedule of assets and liabilities that are measured at fair value on a recurring basis (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 128,286 | |
Fair value of Level 3 investments as beginning balance | $ 25,583 | |
New addition | 1,575 | 25,226 |
The change in fair value of the investments | (9,493) | 357 |
Fair value of Level 3 investments as ending balance | 17,665 | $ 25,583 |
Expected volatility | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.37 | |
Expected volatility | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.69 | |
Probability - Liquidation scenario | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.40 | |
Probability - Redemption scenario | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.40 | |
Probability - IPO scenario | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.20 | |
Derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 74 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 4,624 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 98,079 | |
Level 2 | Derivative instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 74 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 25,583 | |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 839,165 | |
Recurring basis | Expected volatility | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 40 | |
Recurring basis | Expected volatility | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.63 | |
Recurring basis | Probability - Liquidation scenario | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.35 | |
Recurring basis | Probability - Liquidation scenario | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 45 | |
Recurring basis | Probability - Redemption scenario | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.35 | |
Recurring basis | Probability - Redemption scenario | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 45 | |
Recurring basis | Probability - IPO scenario | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 0.10 | |
Recurring basis | Probability - IPO scenario | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Unobservable Inputs | 30 | |
Recurring basis | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 821,134 | 102,134 |
Recurring basis | Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 18,031 | 26,078 |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 2,249 | |
Recurring basis | Level 1 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 2,249 | 4,624 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 819,251 | |
Recurring basis | Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 818,885 | 97,510 |
Recurring basis | Level 2 | Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 366 | 495 |
Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 17,665 | |
Recurring basis | Level 3 | Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 17,665 | $ 25,583 |
Principal Accounting Policies_3
Principal Accounting Policies - Accounts Receivable, net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Principal Accounting Policies | |||
Cash settlement from commercial banks period | 6 months | ||
Bank acceptance notes, endorsed | $ 0 | $ 0 | $ 1,400,000 |
Bank acceptance notes, endorsed but yet due | 0 | 0 | |
Bank acceptance notes, transferred without recourse | $ 4,620,000 | $ 13,814,000 | $ 0 |
Principal Accounting Policies_4
Principal Accounting Policies - Property, Equipment and Software (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computers and electronic equipment | |
Property, Plant and Equipment | |
Property, equipment and software useful life | 3 years |
Office equipment | |
Property, Plant and Equipment | |
Property, equipment and software useful life | 3 years |
Software | |
Property, Plant and Equipment | |
Property, equipment and software useful life | 3 years |
Principal Accounting Policies_5
Principal Accounting Policies - Impairment of Long-lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Principal Accounting Policies | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Principal Accounting Policies_6
Principal Accounting Policies - Value Added Taxes (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) subsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Principal Accounting Policies | |||
Number of subsidiaries | subsidiary | 2 | ||
Value added tax receivable percentage | 3% | ||
VAT refund received | $ | $ 6,211 | $ 8,919 | $ 303 |
Principal Accounting Policies_7
Principal Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue | |||
Total revenue | $ 208,172 | $ 302,076 | $ 179,874 |
Services expiration period | 12 months | ||
Remaining performance obligations | $ 7,215 | 10,113 | |
Contract liability, including both deferred revenue and the advance from customers | $ 34,848 | 41,201 | |
Revenue, remaining performance obligation, optional exemption, performance obligation [true false] | true | ||
Current deferred revenue | |||
Disaggregation of Revenue | |||
Remaining performance obligations | $ 6,821 | 9,254 | |
Non-current deferred revenue | |||
Disaggregation of Revenue | |||
Remaining performance obligations | $ 394 | 859 | |
Maximum | |||
Disaggregation of Revenue | |||
Remaining performance obligation recognition period | 36 months | ||
Minimum | |||
Disaggregation of Revenue | |||
Remaining performance obligation recognition period | 18 months | ||
IoT PaaS | |||
Disaggregation of Revenue | |||
Total revenue | $ 152,914 | 261,360 | 151,677 |
IoT PaaS | Maximum | |||
Disaggregation of Revenue | |||
Life cycle of different smart devices | 2 years | ||
IoT PaaS | Minimum | |||
Disaggregation of Revenue | |||
Life cycle of different smart devices | 1 year 6 months | ||
Smart device distribution | |||
Disaggregation of Revenue | |||
Total revenue | $ 25,446 | 22,153 | 22,071 |
SaaS and others | |||
Disaggregation of Revenue | |||
Total revenue | $ 29,812 | $ 18,563 | $ 6,126 |
Principal Accounting Policies_8
Principal Accounting Policies - Sales and Marketing Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales and marketing expenses | |||
Principal Accounting Policies | |||
Total advertising and marketing costs | $ 5,355 | $ 13,637 | $ 6,300 |
Principal Accounting Policies_9
Principal Accounting Policies - Government Grants (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other operating incomes, net | |||
Principal Accounting Policies | |||
Government grants | $ 10,350 | $ 10,423 | $ 1,299 |
Principal Accounting Policie_10
Principal Accounting Policies - Employee Social Security and Welfare Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Principal Accounting Policies | |||
Employee social security and welfare benefits expenses | $ 44,505 | $ 42,944 | $ 14,715 |
Principal Accounting Policie_11
Principal Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Principal Accounting Policies | |||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Principal Accounting Policie_12
Principal Accounting Policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Principal Accounting Policies | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Risks and Concentration - Credi
Risks and Concentration - Credit concentration (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivables | Credit concentration risk | Customer A | |
Risks and Concentration | |
Concentration risk percentage | 19% |
Risks and Concentration - Suppl
Risks and Concentration - Supplier's concentration (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total purchases | Supplier concentration risk | Supplier A | |||
Risks and Concentration | |||
Concentration risk percentage | 15% | 25% | 13% |
Short-term Investment (Details)
Short-term Investment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Investments | |||
Time deposits | $ 818,885,000 | $ 97,510,000 | |
Equity securities with readily determinable fair value | 2,249,000 | 4,624,000 | |
Total short-term investments | $ 821,134,000 | $ 102,134,000 | |
Weighted average return of the wealth management products | 2.60% | 2.70% | 2.90% |
Unrealized investment loss in fair value | $ 2,056,000 | $ 1,998,000 | |
Financial income, net | |||
Short-term Investments | |||
Unrealized investment loss in fair value | 2,056,000 | 1,998,000 | |
Realized investment income | $ 0 | $ 422 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, net | |||
Accounts receivable, gross | $ 13,955 | $ 34,345 | |
Less: allowance for doubtful accounts | 1,783 | 1,644 | |
Total accounts receivable, net | 12,172 | 32,701 | |
Allowance for doubtful accounts | $ 288 | $ 1,030 | $ 278 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories, net | |||
Raw materials | $ 44,225 | $ 55,845 | |
Work in process | 3,237 | 3,359 | |
Finished goods | 4,183 | 5,958 | |
Low value consumables and spare parts | 153 | 145 | |
Less: inventory write-downs | (6,418) | (2,725) | |
Total inventories, net | 45,380 | 62,582 | |
Inventory write-downs | $ 4,067 | $ 1,806 | $ 539 |
Prepayments and Other Assets (D
Prepayments and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepayments and Other Assets | ||
Advance to suppliers | $ 5,980 | $ 12,529 |
VAT recoverable | 810 | 621 |
Rental deposits | 527 | 438 |
Receivables from third party payment platforms | 299 | 175 |
Interest receivable | 284 | 123 |
Prepayment for share repurchase | 10,355 | |
Professional cost for Dual Primary Listing | 3,049 | |
Others | 852 | 592 |
Total prepayments and other current assets | 8,752 | 27,882 |
Other non-current assets | ||
Rental deposits | 1,179 | 1,818 |
Total other non-current assets | $ 1,179 | $ 1,818 |
Property, Equipment and Softw_3
Property, Equipment and Software, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment | |||
Total cost | $ 11,916 | $ 12,680 | |
Less: Accumulated depreciation and amortization | (8,089) | (5,875) | |
Total property, equipment and software, net | 3,827 | 6,805 | |
Depreciation expense | 3,443 | 3,369 | $ 1,662 |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Total cost | 3,389 | 3,092 | |
Computers and electronic equipment | |||
Property, Plant and Equipment | |||
Total cost | 7,513 | 8,539 | |
Office equipment | |||
Property, Plant and Equipment | |||
Total cost | 229 | 437 | |
Software | |||
Property, Plant and Equipment | |||
Total cost | 726 | $ 612 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Total cost | $ 59 |
Long-term Investment (Details)
Long-term Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term Investment | ||
Investments in available-for-sale debt securities | $ 17,665 | $ 25,583 |
Investment in an equity security with readily determinable fair values | 366 | 495 |
Total long-term investments | $ 18,031 | $ 26,078 |
Long-term Investment - Addition
Long-term Investment - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Nov. 30, 2021 USD ($) | Nov. 30, 2021 CNY (¥) | Oct. 31, 2021 USD ($) | Oct. 31, 2021 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Aug. 31, 2021 USD ($) | Aug. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Sep. 30, 2021 CNY (¥) | |
Long-term Investment | ||||||||||||||||||
Realized gain of bridge loan conversion to investment | $ 1,218 | |||||||||||||||||
Changes in fair value of long-term investments | $ (9,493) | 357 | ||||||||||||||||
Shareholding interest of a privately held company | ||||||||||||||||||
Long-term Investment | ||||||||||||||||||
Shareholding interest acquired, cash consideration | $ 1,575 | ¥ 10,000 | $ 11,713 | ¥ 75,000 | $ 774 | ¥ 5,000 | $ 3,092 | ¥ 20,000 | ||||||||||
Shareholding interest of a privately held company | Group acquired shareholding interest of privately held company one | ||||||||||||||||||
Long-term Investment | ||||||||||||||||||
Shareholding interest acquired, cash consideration | $ 4,672 | ¥ 30,640 | $ 467 | ¥ 3,000 | ||||||||||||||
Shareholding interest of a privately held company | Group acquired shareholding interest of privately held company two | ||||||||||||||||||
Long-term Investment | ||||||||||||||||||
Shareholding interest acquired, cash consideration | $ 1,120 | ¥ 7,139 | $ 1,571 | ¥ 10,000 | ||||||||||||||
Shareholding interest of a customer with a bridge loan | ||||||||||||||||||
Long-term Investment | ||||||||||||||||||
Shareholding interest acquired, cash consideration | $ 2,459 | ¥ 15,640 | ||||||||||||||||
Realized gain of bridge loan conversion to investment | $ 1,218 | ¥ 7,860 | ||||||||||||||||
Loan to customer, conversion into investment | $ 2,302 | ¥ 15,000 | ||||||||||||||||
Bridge loan to a customer | ||||||||||||||||||
Long-term Investment | ||||||||||||||||||
Loans and leases receivable, before fees, gross | $ 2,313 | ¥ 15,000 | ||||||||||||||||
Loans receivable, term | 1 year | 1 year |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Leases | |||
Variable lease costs | $ 0 | ||
Operating lease costs | $ 6,626 | $ 8,231 | $ 4,710 |
Minimum | |||
Operating Leases | |||
Remaining terms | 1 year | ||
Maximum | |||
Operating Leases | |||
Remaining terms | 5 years |
Operating Leases - Components o
Operating Leases - Components of lease expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease cost: | |||
Amortization of right-of-use assets | $ 4,766 | $ 6,981 | $ 4,022 |
Interest of lease liabilities | 692 | 749 | 396 |
Expenses for short-term lease within 12 months | 1,168 | 501 | 292 |
Total lease cost | $ 6,626 | $ 8,231 | $ 4,710 |
Operating Leases - Supplemental
Operating Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Leases | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 5,554 | $ 7,920 | $ 4,976 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 884 | $ 23,810 | $ 7,047 |
Operating Leases - Supplement_2
Operating Leases - Supplemental consolidated balance sheet information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Right-of-use assets | $ 9,736 | $ 22,181 |
Operating lease liabilities-current | 3,850 | 5,697 |
Operating lease liabilities-non-current | 5,292 | 16,048 |
Total lease liabilities | $ 9,142 | $ 21,745 |
Weighted-average remaining lease term, operating leases | 2 years 8 months 23 days | 3 years 9 months 21 days |
Weighted-average discount rate, operating lease | 4.75% | 4.75% |
Operating Leases - Maturities o
Operating Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Maturities of lease liabilities | ||
2022 | $ 6,722 | |
2023 | $ 4,200 | 6,652 |
2024 | 2,835 | 4,909 |
2025 | 2,675 | 4,888 |
2026 | 46 | 646 |
2027 | 4 | 5 |
Total undiscounted lease payments | 9,760 | 23,822 |
Less: imputed interest | (618) | (2,077) |
Total lease liabilities | $ 9,142 | $ 21,745 |
Accruals and Other Liabilitie_2
Accruals and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accruals and other current liabilities | ||
Salary and welfare payable | $ 16,850 | $ 30,597 |
Cloud infrastructure and IT related services fee payables | 3,214 | 3,110 |
Payment from depositary bank, current (2) | 3,113 | 2,611 |
Professional service fee payables | 2,036 | 5,558 |
Deposit payable | 1,436 | |
Advertising and promotion fee payables | 1,078 | 4,172 |
Sales return allowances | 1,004 | 709 |
Tax payables | 787 | 1,796 |
Payables for share repurchase | 716 | |
Membership fee to be refunded (1) | 388 | 471 |
Product warranty | 213 | 339 |
Others | 2,548 | 1,484 |
Total accruals and other current liabilities | 33,383 | 50,847 |
Other non-current liabilities | ||
Payment from depositary bank, non-current (2) | 7,004 | 8,484 |
Total accruals and other liabilities | $ 40,387 | $ 59,331 |
Accruals and Other Liabilitie_3
Accruals and Other Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accruals and Other Liabilities | ||||
Reimbursement payment from depositary bank | $ 1,926 | $ 13,053 | ||
Period of arrangement in which amount recorded ratably as other non-operating income | 46 months | 5 years | ||
Other non-operating income | ||||
Accruals and Other Liabilities | ||||
Reimbursement payment from depositary bank recorded | $ 2,904 | $ 1,958 |
Deferred Revenue (Details)
Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenue | ||||
Total deferred revenue | $ 7,215 | $ 10,113 | ||
Cloud-based connectivity and basic IoT services | ||||
Deferred Revenue | ||||
Total deferred revenue | 1,375 | 2,669 | $ 2,058 | $ 777 |
Membership | ||||
Deferred Revenue | ||||
Total deferred revenue | 672 | 3,473 | 1,077 | |
SaaS | ||||
Deferred Revenue | ||||
Total deferred revenue | $ 5,168 | $ 3,971 | $ 1,040 |
Deferred Revenue - Deferred clo
Deferred Revenue - Deferred cloud-based connectivity and basic IoT services related revenue, Membership, SaaS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Revenue | |||
Beginning balances | $ 10,113 | ||
Ending balances | 7,215 | $ 10,113 | |
Cloud-based connectivity and basic IoT services | |||
Deferred Revenue | |||
Beginning balances | 2,669 | 2,058 | $ 777 |
Deferral of revenue | 872 | 2,157 | 1,781 |
Recognition of deferred revenue | (2,166) | (1,546) | (500) |
Ending balances | 1,375 | 2,669 | 2,058 |
Membership | |||
Deferred Revenue | |||
Beginning balances | 3,473 | 1,077 | |
Deferral of revenue | 2,442 | 9,259 | 1,229 |
Recognition of deferred revenue | (5,243) | (6,863) | (152) |
Ending balances | 672 | 3,473 | 1,077 |
SaaS | |||
Deferred Revenue | |||
Beginning balances | 3,971 | 1,040 | |
Deferral of revenue | 11,779 | 6,455 | 1,834 |
Recognition of deferred revenue | (10,582) | (3,524) | (794) |
Ending balances | $ 5,168 | $ 3,971 | $ 1,040 |
Financial Income, net (Details)
Financial Income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Income, net. | |||
Interest income and investment income, net (1) | $ 20,731 | $ 8,119 | $ 3,073 |
Gain on disposal of a long-term investment | 147 | ||
Realized gain of bridge loan conversion to investment (Note 9(1)) | 1,218 | ||
Fair value change of short-term investments | (2,056) | (1,998) | |
Fair value change of long-term investments | (129) | (53) | |
Total financial Income, net | 18,546 | 7,286 | 3,220 |
Interest income and investment income, gross | 22,898 | 8,045 | $ 3,073 |
Investment gain (loss) from foreign exchange contracts | $ 2,167 | $ 74 |
Ordinary Shares (Details)
Ordinary Shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 04, 2022 $ / shares shares | Dec. 28, 2021 shares | Dec. 23, 2021 shares | Oct. 18, 2021 shares | Sep. 13, 2021 shares | Aug. 30, 2021 USD ($) | Apr. 20, 2021 shares | Mar. 18, 2021 USD ($) $ / shares shares | Mar. 17, 2021 USD ($) Vote shares | Dec. 30, 2020 USD ($) | Nov. 01, 2019 item $ / shares | Sep. 16, 2019 item $ / shares | May 02, 2018 item $ / shares | Apr. 16, 2018 item $ / shares | Sep. 15, 2017 item $ / shares | Aug. 15, 2017 item $ / shares | Nov. 11, 2016 item $ / shares | Mar. 31, 2015 item $ / shares | Dec. 23, 2014 USD ($) item $ / shares shares | Aug. 28, 2014 USD ($) $ / shares shares | Aug. 28, 2014 CNY (¥) shares | Feb. 28, 2021 USD ($) item $ / shares shares | Sep. 30, 2019 shares | Apr. 30, 2018 shares | Aug. 31, 2017 shares | Nov. 30, 2016 shares | Dec. 31, 2014 shares | Dec. 31, 2022 USD ($) Vote $ / shares shares | Dec. 31, 2021 USD ($) Vote $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Nov. 09, 2022 USD ($) | Nov. 01, 2022 $ / shares shares | Oct. 31, 2022 shares | Dec. 31, 2019 $ / shares shares | |
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Authorized share capital | $ | $ 50 | $ 50 | $ 50 | |||||||||||||||||||||||||||||||
Number of authorized share capital | 1,000,000,000 | 1,000,000,000 | 0 | 0 | ||||||||||||||||||||||||||||||
Par value | $ / shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||||||||||||||||||||||||||||
Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance | $ | $ 904,732 | |||||||||||||||||||||||||||||||||
Number of ordinary shares issued | 0 | 0 | 221,980,000 | 221,980,000 | ||||||||||||||||||||||||||||||
Number of ordinary shares outstanding | 0 | 0 | 221,980,000 | 221,980,000 | ||||||||||||||||||||||||||||||
Subscription receivables from shareholders | $ | $ 0 | $ 10 | ||||||||||||||||||||||||||||||||
Subscription receivables received | $ | $ 10 | |||||||||||||||||||||||||||||||||
Proceeds from IPO | $ | $ 904,700 | |||||||||||||||||||||||||||||||||
Number of ordinary shares reclassified and re-designated | 1,000,000,000 | |||||||||||||||||||||||||||||||||
Ordinary shares reclassified and re-designated, ratio | 1 | |||||||||||||||||||||||||||||||||
Share repurchase program, remaining authorized amount | $ | $ 46,000 | |||||||||||||||||||||||||||||||||
Share Repurchase Program | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Share repurchase program, period | 12 months | |||||||||||||||||||||||||||||||||
Series A convertible preferred shares | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 0.1378 | $ 0.1378 | ||||||||||||||||||||||||||||||||
Number of shares issued during the period | 934,711,640 | |||||||||||||||||||||||||||||||||
Number of investors | item | 1 | 2 | ||||||||||||||||||||||||||||||||
Series A-1 convertible preferred shares | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 0.2193 | $ 0.2193 | ||||||||||||||||||||||||||||||||
Number of shares issued during the period | 921,032,370 | |||||||||||||||||||||||||||||||||
Number of investors | item | 1 | |||||||||||||||||||||||||||||||||
Weighted average price of shares repurchased during period | $ / shares | 2.5738 | |||||||||||||||||||||||||||||||||
Series B convertible preferred shares | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 0.3305 | $ 0.3305 | ||||||||||||||||||||||||||||||||
Number of shares issued during the period | 827,969,950 | |||||||||||||||||||||||||||||||||
Number of investors | item | 2 | 3 | ||||||||||||||||||||||||||||||||
Series C convertible preferred shares | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 1.9019 | $ 1.9019 | ||||||||||||||||||||||||||||||||
Number of shares issued during the period | 767,500,110 | |||||||||||||||||||||||||||||||||
Number of investors | item | 3 | 6 | ||||||||||||||||||||||||||||||||
Series D convertible preferred shares | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 3.4317 | $ 3.4317 | ||||||||||||||||||||||||||||||||
Number of shares issued during the period | 692,500,110 | |||||||||||||||||||||||||||||||||
Number of investors | item | 1 | 3 | ||||||||||||||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 12.48 | |||||||||||||||||||||||||||||||||
Number of shares issued during the period | 16,026,282 | |||||||||||||||||||||||||||||||||
Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance | $ | $ 200,000 | |||||||||||||||||||||||||||||||||
Number of investors | item | 2 | |||||||||||||||||||||||||||||||||
Number of ordinary shares reclassified and re-designated | 200,000,000 | |||||||||||||||||||||||||||||||||
Ordinary shares | Share Repurchase Program | Ads representing ordinary shares 2,726,767 | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of shares repurchased during period | 2,726,767 | |||||||||||||||||||||||||||||||||
Ordinary shares | Share Repurchase Program | Ads representing ordinary shares 16,086,682 | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of shares repurchased during period | 16,086,682 | |||||||||||||||||||||||||||||||||
Common Class A | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of authorized share capital | 800,000,000 | 600,000,000 | 800,000,000 | 600,000,000 | ||||||||||||||||||||||||||||||
Number of shares issued upon the Dual Primary Listing, net of cost of issuance | 7,300,000 | |||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 2.46 | |||||||||||||||||||||||||||||||||
Par value | $ / shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||||||||||||||||||||||||||||||
Number of shares issued during the period | 5,000,000 | 5,000,000 | ||||||||||||||||||||||||||||||||
Number of ordinary shares issued | 499,146,560 | 491,846,560 | ||||||||||||||||||||||||||||||||
Number of ordinary shares outstanding | 473,550,229 | 480,241,752 | ||||||||||||||||||||||||||||||||
Number of ordinary shares reclassified and re-designated | 600,000,000 | 800,000,000 | ||||||||||||||||||||||||||||||||
Number of ordinary shares converted | 36,000,000 | 27,000,000 | ||||||||||||||||||||||||||||||||
Ordinary shares converted, ratio | 1 | 1 | 1 | |||||||||||||||||||||||||||||||
Ordinary shares, votes per share | Vote | 1 | 1 | ||||||||||||||||||||||||||||||||
Common Class A | Share Repurchase Program | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of underlying shares represented by one ADS | 1 | 1 | ||||||||||||||||||||||||||||||||
Common Class A | IPO | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of underlying shares represented by one ADS | 1 | |||||||||||||||||||||||||||||||||
Common Class B | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of authorized share capital | 200,000,000 | 200,000,000 | ||||||||||||||||||||||||||||||||
Par value | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||||||||||||||||||||||||
Number of ordinary shares issued | 79,400,000 | 79,400,000 | ||||||||||||||||||||||||||||||||
Number of ordinary shares outstanding | 79,400,000 | 79,400,000 | ||||||||||||||||||||||||||||||||
Number of ordinary shares reclassified and re-designated | 200,000,000 | 200,000,000 | ||||||||||||||||||||||||||||||||
Number of ordinary shares converted | 142,400,000 | |||||||||||||||||||||||||||||||||
Ordinary shares converted, ratio | 1 | |||||||||||||||||||||||||||||||||
Ordinary shares, votes per share | Vote | 15 | 10 | ||||||||||||||||||||||||||||||||
ADSs | Share Repurchase Program | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Share repurchase program, authorized amount | $ | $ 200,000 | $ 50,000 | ||||||||||||||||||||||||||||||||
ADSs | Share Repurchase Program | Ads representing ordinary shares 2,726,767 | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of shares repurchased during period | 2,726,767 | |||||||||||||||||||||||||||||||||
Weighted average price of shares repurchased during period | $ / shares | $ 1.55 | |||||||||||||||||||||||||||||||||
ADSs | Share Repurchase Program | Ads representing ordinary shares 16,086,682 | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of shares repurchased during period | 16,086,682 | |||||||||||||||||||||||||||||||||
Weighted average price of shares repurchased during period | $ / shares | $ 3.44 | |||||||||||||||||||||||||||||||||
ADSs | Share Repurchase Program | Ordianry shares representing ordinary shares 26,400 | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of shares repurchased during period | 26,400 | |||||||||||||||||||||||||||||||||
Weighted average price of shares repurchased during period | $ / shares | $ 1.71 | |||||||||||||||||||||||||||||||||
ADSs | IPO | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 21 | |||||||||||||||||||||||||||||||||
Number of shares issued during the period | 43,590,000 | |||||||||||||||||||||||||||||||||
ADSs | Over allotment option | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of shares issued during the period | 1,486,479 | |||||||||||||||||||||||||||||||||
Registered shareholders | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Number of shares issued during the period | 200,000,000 | 200,000,000 | ||||||||||||||||||||||||||||||||
Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance | $ | $ 10 | |||||||||||||||||||||||||||||||||
Subscription receivables received | $ | $ 10 | |||||||||||||||||||||||||||||||||
Investor | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Shares issued price per share | $ / shares | $ 0.0797 | |||||||||||||||||||||||||||||||||
Number of shares issued during the period | 21,980,000 | 21,980,000 | 21,980,000 | |||||||||||||||||||||||||||||||
Two investors | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance | $ 1,577 | ¥ 9,720 | ||||||||||||||||||||||||||||||||
The other investor | ||||||||||||||||||||||||||||||||||
Ordinary Shares | ||||||||||||||||||||||||||||||||||
Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance | $ | $ 175 |
Ordinary Shares - Activities of
Ordinary Shares - Activities of the Group's Class A ordinary shares and Class B ordinary shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Oct. 18, 2021 | Sep. 13, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 28, 2014 | |
Ordinary Shares | ||||||||
Beginning Balance | $ 1,113,661 | $ (164,667) | ||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance | 904,732 | |||||||
Ending Balance | $ 962,167 | $ 1,113,661 | ||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||
Common Stock | ||||||||
Ordinary Shares | ||||||||
Beginning Balance (in shares) | 571,246,560 | 221,980,000 | ||||||
Beginning Balance | $ 29 | $ 11 | ||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance (in shares) | 45,076,479 | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance | $ 2 | |||||||
Issuance of ordinary shares reserved for equity incentive plan (in shares) | 10,000,000 | |||||||
Issuance of ordinary shares reserved for equity incentive plan | $ 1 | |||||||
Ending Balance (in shares) | 578,546,560 | 571,246,560 | ||||||
Ending Balance | $ 29 | $ 29 | ||||||
Common Class A | ||||||||
Ordinary Shares | ||||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance (in shares) | 5,000,000 | 5,000,000 | ||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||||
Common Class A | Common Stock | ||||||||
Ordinary Shares | ||||||||
Beginning Balance (in shares) | 491,846,560 | |||||||
Beginning Balance | $ 25 | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance (in shares) | 7,300,000 | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance | $ 0 | |||||||
Ending Balance (in shares) | 499,146,560 | 491,846,560 | ||||||
Ending Balance | $ 25 | $ 25 | ||||||
Common Class B | ||||||||
Ordinary Shares | ||||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | ||||||
Common Class B | Common Stock | ||||||||
Ordinary Shares | ||||||||
Beginning Balance (in shares) | 79,400,000 | |||||||
Beginning Balance | $ 4 | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance (in shares) | 0 | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance | $ 0 | |||||||
Ending Balance (in shares) | 79,400,000 | 79,400,000 | ||||||
Ending Balance | $ 4 | $ 4 | ||||||
Total of Class A ordinary shares and Class B ordinary shares [Member] | Common Stock | ||||||||
Ordinary Shares | ||||||||
Beginning Balance (in shares) | 571,246,560 | |||||||
Beginning Balance | $ 29 | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance (in shares) | 7,300,000 | |||||||
Issuance of ordinary shares upon Initial Public Offering and related over-allotment option, net of cost of issuance | $ 0 | |||||||
Ending Balance (in shares) | 578,546,560 | 571,246,560 | ||||||
Ending Balance | $ 29 | $ 29 |
Convertible Preferred Shares (D
Convertible Preferred Shares (Details) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | |||||||||||
Nov. 01, 2019 USD ($) item $ / shares shares | Sep. 16, 2019 USD ($) item $ / shares shares | May 02, 2018 USD ($) item $ / shares shares | Apr. 16, 2018 USD ($) item $ / shares shares | Sep. 15, 2017 USD ($) item $ / shares shares | Aug. 15, 2017 USD ($) item $ / shares shares | Nov. 11, 2016 USD ($) item $ / shares shares | Mar. 31, 2015 USD ($) item $ / shares shares | Dec. 23, 2014 USD ($) item $ / shares shares | Nov. 01, 2019 USD ($) $ / shares | May 31, 2018 USD ($) | Sep. 30, 2017 USD ($) | Mar. 31, 2015 USD ($) $ / shares | |
Convertible Preferred Shares | |||||||||||||
Proceeds from issuance of convertible preferred shares, net of issuance costs | $ | $ 115,007 | $ 115,007 | |||||||||||
Series A convertible preferred shares | |||||||||||||
Convertible Preferred Shares | |||||||||||||
Number of shares issued during the period | shares | 65,288,360 | 65,288,360 | |||||||||||
Par value of convertible preferred shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | ||||||||||
Shares issued price per share | $ 0.1378 | $ 0.1378 | $ 0.1378 | ||||||||||
Number of investors | item | 1 | 2 | |||||||||||
Proceeds from issuance of convertible preferred shares, net of issuance costs | $ | $ 500 | $ 8,500 | $ 9,000 | ||||||||||
Series A-1 convertible preferred shares | |||||||||||||
Convertible Preferred Shares | |||||||||||||
Number of shares issued during the period | shares | 13,679,270 | 13,679,270 | |||||||||||
Par value of convertible preferred shares | $ 0.00005 | ||||||||||||
Shares issued price per share | $ 0.2193 | $ 0.2193 | $ 0.2193 | ||||||||||
Number of investors | item | 1 | ||||||||||||
Proceeds from issuance of convertible preferred shares, net of issuance costs | $ | $ 3,000 | ||||||||||||
Series B convertible preferred shares | |||||||||||||
Convertible Preferred Shares | |||||||||||||
Number of shares issued during the period | shares | 87,756,440 | 87,756,440 | |||||||||||
Par value of convertible preferred shares | $ 0.00005 | $ 0.00005 | |||||||||||
Shares issued price per share | $ 0.3305 | $ 0.3305 | |||||||||||
Number of investors | item | 2 | 3 | |||||||||||
Proceeds from issuance of convertible preferred shares, net of issuance costs | $ | $ 4,000 | $ 25,000 | $ 29,000 | ||||||||||
Series C convertible preferred shares | |||||||||||||
Convertible Preferred Shares | |||||||||||||
Number of shares issued during the period | shares | 60,468,490 | 60,468,490 | |||||||||||
Par value of convertible preferred shares | $ 0.00005 | $ 0.00005 | |||||||||||
Shares issued price per share | $ 1.9019 | $ 1.9019 | |||||||||||
Number of investors | item | 3 | 6 | |||||||||||
Proceeds from issuance of convertible preferred shares, net of issuance costs | $ | $ 55,550 | $ 59,457 | $ 115,007 | ||||||||||
Series D convertible preferred shares | |||||||||||||
Convertible Preferred Shares | |||||||||||||
Number of shares issued during the period | shares | 52,428,242 | 52,428,242 | |||||||||||
Par value of convertible preferred shares | $ 0.00005 | $ 0.00005 | 0.00005 | ||||||||||
Shares issued price per share | $ 3.4317 | $ 3.4317 | $ 3.4317 | ||||||||||
Number of investors | item | 1 | 3 | |||||||||||
Proceeds from issuance of convertible preferred shares, net of issuance costs | $ | $ 5,000 | $ 174,918 | $ 179,918 | ||||||||||
Issuance costs | $ | $ 1,938 | $ 1,938 |
Convertible Preferred Shares -
Convertible Preferred Shares - Share repurchases (Details) - Series A-1 convertible preferred shares - USD ($) $ / shares in Units, $ in Thousands | Nov. 01, 2019 | Nov. 11, 2016 |
Convertible Preferred Shares | ||
Number of shares repurchased | 1,457,003 | |
Number of shares issued during the period | 13,679,270 | 13,679,270 |
Weighted average price of shares repurchased during period | $ 2.5738 | |
Proceeds from issuance of Class A ordinary shares upon the Dual Primary Listing, net of cost of issuance | $ 3,750 | |
Original issuance price | $ 0.2193 | $ 0.2193 |
Convertible Preferred Shares _2
Convertible Preferred Shares - Additional (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Sep. 16, 2019 |
Series D convertible preferred shares | ||
Convertible Preferred Shares | ||
Issuance costs | $ 1,938 | $ 1,938 |
Share-based Compensation - Gene
Share-based Compensation - General (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Feb. 25, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 21, 2021 | Jul. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2014 | |
Share-based Compensation | ||||||||
Number of options granted | 2,765,000 | 18,035,000 | 9,705,000 | |||||
Requisite service period | 4 years | 4 years | 4 years | |||||
Number of options outstanding | 56,274,213 | 59,961,539 | 48,740,000 | 41,220,000 | ||||
2015 Plan | ||||||||
Share-based Compensation | ||||||||
Number of ordinary shares reserved for issuance | 76,778,005 | 60,778,005 | 31,918,690 | |||||
Contractual term | 10 years | |||||||
Vesting period | 4 years | |||||||
Number of options granted | 10,205,500 | 3,217,000 | ||||||
Requisite service period | 4 years | |||||||
Number of options outstanding | 56,274,213 | 59,961,539 | ||||||
Total incremental share-based compensation expense | $ 1,646 | |||||||
Expenses expected to be amortized over the remaining requisite service period | $ 960 | |||||||
Percentage of issued and outstanding stock of the entity considered for annual incremental in total number of shares available for issuance | 2% | |||||||
2015 Plan | Restricted Share Units (RSUs) | ||||||||
Share-based Compensation | ||||||||
Number of options granted | 11,638,750 | 3,050,000 | ||||||
2015 Plan | Share-based payment arrangement, tranche one | ||||||||
Share-based Compensation | ||||||||
Vesting period | 2 years | |||||||
Vesting percentage | 50% | |||||||
2015 Plan | Share-based payment arrangement, tranche two | ||||||||
Share-based Compensation | ||||||||
Vesting period | 2 years | |||||||
Vesting percentage | 50% |
Share-based Compensation - Opti
Share-based Compensation - Options activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares | ||||
Outstanding at the beginning | 59,961,539 | 48,740,000 | 41,220,000 | |
Number of options granted | 2,765,000 | 18,035,000 | 9,705,000 | |
Number of options Exercised | (4,502,326) | (5,403,461) | ||
Number of options Forfeited | (1,950,000) | (1,410,000) | (2,185,000) | |
Outstanding at the end | 56,274,213 | 59,961,539 | 48,740,000 | 41,220,000 |
Weighted average exercise price per share | ||||
Outstanding at the beginning (in dollars per share) | $ 0.17 | $ 0.33 | $ 0.33 | |
Granted (in dollars per share) | 0.20 | 0.24 | 0.42 | |
Exercised (in dollars per share) | 0.20 | 0.14 | ||
Forfeited (in dollars per share) | 0.47 | 0.31 | 0.62 | |
Outstanding at the end (in dollars per share) | 0.16 | 0.17 | 0.33 | $ 0.33 |
Weighted average grant date fair value per share | ||||
Outstanding at the beginning (in dollars per share) | 4.40 | 1.05 | 0.75 | |
Granted (in dollars per share) | 3.27 | 12.55 | 2.44 | |
Exercised (in dollars per share) | 2.09 | 0.68 | ||
Forfeited (in dollar per share) | 7.69 | 7.21 | 1.52 | |
Outstanding at the end (in dollars per share) | $ 4.42 | $ 4.40 | $ 1.05 | $ 0.75 |
Weighted average remaining contractual term and Aggregate intrinsic value | ||||
Weighted average remaining contractual term | 6 years 14 days | 6 years 11 months 12 days | 7 years 7 days | 7 years 5 months 26 days |
Outstanding at the beginning (in dollars) | $ 364,287 | $ 591,879 | $ 93,889 | |
Outstanding at the end (in dollars) | 98,287 | 364,287 | 591,879 | $ 93,889 |
Difference between the exercise price of the underlying awards and the estimated fair value of the underlying stock | 107,484 | $ 374,760 | $ 608,251 | |
Share Option | ||||
Weighted average remaining contractual term and Aggregate intrinsic value | ||||
Unrecognized share-based compensation expense | $ 127,887 | |||
Weighted-average vesting period | 1 year 18 days |
Share-based Compensation - Assu
Share-based Compensation - Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation | |||
Risk-free interest rate, minimum | 1.13% | 0.70% | |
Risk-free interest rate, maximum | 1.79% | 0.82% | |
Expected term (in years) | 10 years | 10 years | 10 years |
Expected volatility, minimum | 55.68% | 50.40% | 50.66% |
Expected volatility, maximum | 55.78% | 55.79% | 50.96% |
Expected forfeiture rate (post-vesting) | 3.88% | ||
Minimum | |||
Share-based Compensation | |||
Exercise price (US Dollar) | $ 0.2 | $ 0.3 | |
Exercise multiple | $ 2.2 | 2.2 | 2.2 |
Risk-free interest rate, minimum | 1.92% | ||
Expected forfeiture rate (post-vesting) | 5.83% | ||
Fair value of the underlying shares on the date of options grants (US Dollar) | $ 2.24 | 6.25 | 2.66 |
Fair value of share option (US Dollar) | 2.05 | 5.78 | 1.98 |
Maximum | |||
Share-based Compensation | |||
Exercise price (US Dollar) | 2.88 | 1.08 | |
Exercise multiple | $ 2.8 | 2.8 | 2.8 |
Risk-free interest rate, maximum | 3.22% | ||
Expected forfeiture rate (post-vesting) | 7.70% | ||
Fair value of the underlying shares on the date of options grants (US Dollar) | $ 5.46 | 20.91 | 3.02 |
Fair value of share option (US Dollar) | 5.27 | $ 20.91 | $ 2.54 |
2015 Plan | Minimum | |||
Share-based Compensation | |||
Exercise price (US Dollar) | $ 0.2 |
Share-based Compensation - RSUs
Share-based Compensation - RSUs activity (Details) - Restricted Share Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of shares | ||
Outstanding at the beginning | 3,050,000 | |
Granted | 10,205,500 | 3,217,000 |
Vested | (346,000) | |
Forfeited | (1,270,750) | (167,000) |
Outstanding at the end | 11,638,750 | 3,050,000 |
Weighted average grant date fair value per share | ||
Outstanding at the beginning (in dollars per share) | $ 8.80 | |
Granted (in dollars per share) | 2.58 | $ 8.95 |
Vested (in dollars per share) | 6.68 | |
Forfeited (in dollars per share) | 7.80 | 11.80 |
Outstanding at the end (in dollars per share) | $ 3.51 | $ 8.80 |
Unrecognized share-based compensation expense | $ 33,197 | $ 24,933 |
Weighted-average vesting period | 3 years 4 months 24 days | 3 years 7 months 28 days |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) | 12 Months Ended | ||||
Dec. 22, 2017 | Mar. 16, 2007 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||||
Corporate tax rate | 25% | 25% | 25% | ||
Preferential tax rate | 15% | 15% | 15% | ||
HNTE certificate effective period | 3 years | ||||
Withholding income tax rate on dividends distributed | 10% | ||||
Maximum withholding income tax rate if the immediate holding company in Hong Kong owns directly at least 25% of the shares | 5% | ||||
Percentage of shares of the FIE for withholding income tax rate of 5% | 25% | ||||
Franchise tax rate (as a percent) | 8.84% | 8.84% | 8.84% | ||
Franchise tax | $ 0.8 | $ 0.8 | $ 0.8 | ||
Tax losses carry forwards | $ 544,528,000 | ||||
HONG KONG | |||||
Income Taxes | |||||
Corporate tax rate | 16.50% | ||||
PRC | |||||
Income Taxes | |||||
Corporate tax rate | 25% | 25% | |||
HNTE certificate effective period | 6 years | ||||
UNITED STATES | |||||
Income Taxes | |||||
Corporate tax rate | 35% | 21% |
Income Taxes - Components of lo
Income Taxes - Components of loss before tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Total loss before tax | $ (144,295) | $ (174,934) | $ (66,706) |
PRC | |||
Income Taxes | |||
Total loss before tax | (143,951) | (150,478) | (54,776) |
Overseas | |||
Income Taxes | |||
Total loss before tax | $ (344) | $ (24,456) | $ (11,930) |
Income Taxes - Components of In
Income Taxes - Components of Income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Current income tax expense | $ 1,880 | $ 490 | $ 206 |
Total income tax expense | $ 1,880 | $ 490 | $ 206 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the differences between statutory tax rate and the effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
PRC Statutory income tax rate | 25% | 25% | 25% |
Effect of tax rates in different tax jurisdiction | (0.30%) | (2.00%) | (2.60%) |
Income tax on tax holiday | (6.00%) | (2.20%) | (3.00%) |
Additional deduction for research and development expenditures | 8.50% | 7.20% | 8.90% |
Share-based compensation | (10.50%) | (8.40%) | (2.10%) |
Permanent book-tax differences | (1.40%) | 6.20% | (2.20%) |
Change in valuation allowance | (16.60%) | (26.00%) | (24.30%) |
Effective tax rates | (1.30%) | (0.20%) | (0.30%) |
Income Taxes - Significant comp
Income Taxes - Significant components of the deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||||
Net accumulated losses-carry forward | $ 103,231 | $ 76,944 | $ 33,277 | |
Payroll liabilities | 2,915 | 5,438 | 3,836 | |
Inventory write-downs | 691 | 402 | 183 | |
Receivables allowances | 42 | 171 | 83 | |
Other deductible temporary difference | 88 | 9 | 26 | |
Less: valuation allowance | $ (106,967) | $ (82,964) | $ (37,405) | $ (21,205) |
Income Taxes - Tax losses carry
Income Taxes - Tax losses carry forwards (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Income Taxes | |
Total tax losses carry forwards | $ 514,481 |
2023 | |
Income Taxes | |
Total tax losses carry forwards | 115 |
2024 | |
Income Taxes | |
Total tax losses carry forwards | 238 |
2025 | |
Income Taxes | |
Total tax losses carry forwards | 62,589 |
2026 | |
Income Taxes | |
Total tax losses carry forwards | 111,126 |
2027 | |
Income Taxes | |
Total tax losses carry forwards | 51,577 |
2028 | |
Income Taxes | |
Total tax losses carry forwards | 33,544 |
2029 | |
Income Taxes | |
Total tax losses carry forwards | 71,988 |
2030 | |
Income Taxes | |
Total tax losses carry forwards | 39,414 |
2031 | |
Income Taxes | |
Total tax losses carry forwards | 36,357 |
2032 | |
Income Taxes | |
Total tax losses carry forwards | $ 107,533 |
Income Taxes - Movement of valu
Income Taxes - Movement of valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation allowance | |||
Balance at beginning of the year | $ 82,964 | $ 37,405 | $ 21,205 |
Changes of valuation allowance | 24,003 | 45,559 | 16,200 |
Balance at end of the year | $ 106,967 | $ 82,964 | $ 37,405 |
Basic and Diluted Net Loss pe_3
Basic and Diluted Net Loss per Share - Schedule of basic and diluted net income (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net loss attributable to Tuya Inc.'s ordinary shareholders, basic | $ (146,175) | $ (175,424) | $ (66,912) |
Net loss attributable to Tuya Inc.'s ordinary shareholders, diluted | $ (146,175) | $ (175,424) | $ (66,912) |
Denominator: | |||
Weighted-average ordinary shares outstanding, basic | 553,527,529 | 489,149,533 | 221,980,000 |
Weighted-average ordinary shares outstanding, diluted | 553,527,529 | 489,149,533 | 221,980,000 |
Net loss per share attributable to ordinary shareholders, basic | $ (0.26) | $ (0.36) | $ (0.30) |
Net loss per share attributable to ordinary shareholders, diluted | $ (0.26) | $ (0.36) | $ (0.30) |
Basic and Diluted Net Loss pe_4
Basic and Diluted Net Loss per Share - Schedule of Antidilutive Shares excluded from the computation of diluted net loss per ordinary share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Preferred Shares-weighted shares | |||
Basic and Diluted Net Loss per Share | |||
Weighted average shares excluded from computation of diluted net loss per ordinary share | 278,163,799 | ||
Share option and RSU-weighted shares | |||
Basic and Diluted Net Loss per Share | |||
Weighted average shares excluded from computation of diluted net loss per ordinary share | 65,349,350 | 61,989,697 | 44,743,156 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies | ||
Future minimum capital commitments | $ 0 | $ 0 |
Operating lease commitment within one year or less lease term | $ 33 | $ 99 |
Commitments and Contingencies_2
Commitments and Contingencies - Services Purchase Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies | ||
Total | $ 24,604 | $ 31,771 |
Less Than 1 year | 6,479 | 6,146 |
1-3 years | 15,000 | 15,000 |
3-5 years | 3,125 | 10,625 |
Purchase obligations remaining non-cancelable contractual commitments | 24,604 | 31,771 |
Aggregate purchase committed value | 37,500 | |
Total payments made | $ 15,774 | $ 5,729 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | ||||
Related party transaction amount | $ 0 | $ 0 | ||
Subscription receivables received | $ 10 | |||
Prepaid cloud service fee to Tencent Group | ||||
Related Party Transactions | ||||
Due from related parties | 97 | |||
Cloud-related technical services fee due to Tencent Group | ||||
Related Party Transactions | ||||
Due from related parties | 306 | $ 669 | ||
Registered shareholders | ||||
Related Party Transactions | ||||
Subscription receivables received | $ 10 | |||
Tencent Group | ||||
Related Party Transactions | ||||
Purchase of cloud service | $ 262 |
Statutory Reserves and Restri_3
Statutory Reserves and Restricted Net Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statutory Reserves and Restricted Net Assets | ||
Minimum percentage of statutory after-tax profit required to be appropriated to statutory general reserve fund | 10% | |
Maximum percentage of statutory general reserve fund as registered capital | 50% | |
Restricted portion | $ 392,612 | $ 283,655 |
Statutory Reserves and Restri_4
Statutory Reserves and Restricted Net Assets - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||||
Cash and cash equivalents | $ 133,161 | $ 963,938 | $ 158,792 | |
Prepayments and other current assets | 8,752 | 27,882 | ||
Total current assets | 1,023,366 | 1,191,268 | ||
Non-current assets: | ||||
Total non-current assets | 32,773 | 56,882 | ||
Total assets | 1,056,139 | 1,248,150 | ||
Liabilities | ||||
Accruals and other current liabilities | 40,387 | 59,331 | ||
Other non-current liabilities | 7,004 | 8,484 | ||
Total liabilities | 93,972 | 134,489 | ||
Shareholders' equity: | ||||
Treasury stock (US$0.00005 par value; 11,604,808 and 25,596,331 shares as of December 31, 2021 and 2022, respectively) | (86,438) | (46,930) | ||
Additional paid-in capital | 1,584,764 | 1,526,140 | ||
Accumulated other comprehensive income/(loss) | (22,115) | 2,320 | ||
Accumulated deficit | (514,073) | (367,898) | ||
Total shareholders' equity | 962,167 | 1,113,661 | $ (164,667) | $ (110,093) |
Total liabilities and shareholders' equity | 1,056,139 | 1,248,150 | ||
Ordinary shares | ||||
Shareholders' equity: | ||||
Ordinary shares | ||||
Class A ordinary shares | ||||
Shareholders' equity: | ||||
Ordinary shares | 25 | 25 | ||
Class B ordinary shares | ||||
Shareholders' equity: | ||||
Ordinary shares | 4 | 4 | ||
Reportable Legal Entities | Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 4,685 | 15,833 | ||
Amounts due from subsidiaries | 318,017 | 346,859 | ||
Prepayments and other current assets | 596 | 13,345 | ||
Total current assets | 323,298 | 376,037 | ||
Non-current assets: | ||||
Investment in subsidiaries and VIE | 651,044 | 753,005 | ||
Total non-current assets | 651,044 | 753,005 | ||
Total assets | 974,342 | 1,129,042 | ||
Liabilities | ||||
Accruals and other current liabilities | 5,171 | 6,897 | ||
Other non-current liabilities | 7,004 | 8,484 | ||
Total liabilities | 12,175 | 15,381 | ||
Shareholders' equity: | ||||
Treasury stock (US$0.00005 par value; 11,604,808 and 25,596,331 shares as of December 31, 2021 and 2022, respectively) | (86,438) | (46,930) | ||
Additional paid-in capital | 1,584,764 | 1,526,140 | ||
Accumulated other comprehensive income/(loss) | (22,115) | 2,320 | ||
Accumulated deficit | (514,073) | (367,898) | ||
Total shareholders' equity | 962,167 | 1,113,661 | ||
Total liabilities and shareholders' equity | 974,342 | 1,129,042 | ||
Reportable Legal Entities | Ordinary shares | Parent Company | ||||
Shareholders' equity: | ||||
Ordinary shares | 0 | 0 | ||
Reportable Legal Entities | Class A ordinary shares | Parent Company | ||||
Shareholders' equity: | ||||
Ordinary shares | 25 | 25 | ||
Reportable Legal Entities | Class B ordinary shares | Parent Company | ||||
Shareholders' equity: | ||||
Ordinary shares | $ 4 | $ 4 |
Statutory Reserves and Restri_5
Statutory Reserves and Restricted Net Assets - Balance Sheet Parenthetical (Details) - $ / shares | Dec. 31, 2022 | Nov. 01, 2022 | Oct. 31, 2022 | Dec. 31, 2021 | Mar. 17, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 28, 2014 |
Balance sheet | ||||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||
Ordinary shares, shares authorized | 0 | 0 | 1,000,000,000 | 1,000,000,000 | ||||
Ordinary shares, shares issued | 0 | 0 | 221,980,000 | 221,980,000 | ||||
Ordinary shares, shares outstanding | 0 | 0 | 221,980,000 | 221,980,000 | ||||
Treasury stock, par value | $ 0.00005 | $ 0.00005 | ||||||
Treasury stock (in shares) | 25,596,331 | 11,604,808 | ||||||
Class A ordinary shares | ||||||||
Balance sheet | ||||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | $ 0.00005 | |||||
Ordinary shares, shares authorized | 800,000,000 | 800,000,000 | 600,000,000 | 600,000,000 | ||||
Ordinary shares, shares issued | 499,146,560 | 491,846,560 | ||||||
Ordinary shares, shares outstanding | 473,550,229 | 480,241,752 | ||||||
Class B ordinary shares | ||||||||
Balance sheet | ||||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | ||||||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | ||||||
Ordinary shares, shares issued | 79,400,000 | 79,400,000 | ||||||
Ordinary shares, shares outstanding | 79,400,000 | 79,400,000 | ||||||
Reportable Legal Entities | Parent Company | ||||||||
Balance sheet | ||||||||
Treasury stock, par value | $ 0.00005 | $ 0.00005 | ||||||
Treasury stock (in shares) | 25,596,331 | 11,604,808 | ||||||
Reportable Legal Entities | Ordinary shares | Parent Company | ||||||||
Balance sheet | ||||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | ||||||
Ordinary shares, shares authorized | 0 | 0 | ||||||
Ordinary shares, shares issued | 0 | 0 | ||||||
Ordinary shares, shares outstanding | 0 | 0 | ||||||
Reportable Legal Entities | Class A ordinary shares | Parent Company | ||||||||
Balance sheet | ||||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | ||||||
Ordinary shares, shares authorized | 800,000,000 | 600,000,000 | ||||||
Ordinary shares, shares issued | 499,146,560 | 491,846,560 | ||||||
Ordinary shares, shares outstanding | 473,550,229 | 480,241,752 | ||||||
Reportable Legal Entities | Class B ordinary shares | Parent Company | ||||||||
Balance sheet | ||||||||
Ordinary shares, par value | $ 0.00005 | $ 0.00005 | ||||||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | ||||||
Ordinary shares, shares issued | 79,400,000 | 79,400,000 | ||||||
Ordinary shares, shares outstanding | 79,400,000 | 79,400,000 |
Statutory Reserves and Restri_6
Statutory Reserves and Restricted Net Assets - Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expenses: | |||
General and administrative expenses | $ (67,513) | $ (71,589) | $ (17,868) |
Other operating expenses, net | 10,508 | 9,835 | 1,071 |
Total operating expenses | 257,609 | 311,427 | 131,783 |
Other non-operating incomes, net | 2,904 | 1,958 | |
Financial income, net | 18,546 | 7,286 | 3,220 |
Foreign exchange gain | 2,441 | (618) | (80) |
Loss before income tax expense | (144,295) | (174,934) | (66,706) |
Net loss | (146,175) | (175,424) | (66,912) |
Net loss attributable to ordinary shareholders | (146,175) | (175,424) | (66,912) |
Net loss | (146,175) | (175,424) | (66,912) |
Other comprehensive income/(loss) | |||
Foreign currency translation | (14,942) | 1,482 | 2,882 |
Changes in fair value of long-term investments | (9,493) | 357 | |
Total comprehensive loss attributable to Tuya Inc. | (170,610) | (173,585) | (64,030) |
Reportable Legal Entities | Parent Company | |||
Operating expenses: | |||
General and administrative expenses | (3,013) | (2,927) | (784) |
Share of loss of subsidiaries and VIE | (146,417) | (174,455) | (66,982) |
Other operating expenses, net | (7) | ||
Total operating expenses | (149,430) | (177,382) | (67,773) |
Other non-operating incomes, net | 2,904 | 1,958 | |
Financial income, net | 197 | 861 | |
Foreign exchange gain | 154 | ||
Loss before income tax expense | (146,175) | (175,424) | (66,912) |
Net loss | (146,175) | (175,424) | (66,912) |
Net loss attributable to ordinary shareholders | (146,175) | (175,424) | (66,912) |
Net loss | (146,175) | (175,424) | (66,912) |
Other comprehensive income/(loss) | |||
Foreign currency translation | (14,942) | 1,482 | 2,882 |
Changes in fair value of long-term investments | (9,493) | 357 | |
Total comprehensive loss attributable to Tuya Inc. | $ (170,610) | $ (173,585) | $ (64,030) |
Statutory Reserves and Restri_7
Statutory Reserves and Restricted Net Assets - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows | |||
Net cash generated from/(used in) operating activities | $ (70,654) | $ (126,103) | $ (49,211) |
Net cash used in investing activities | (714,225) | (112,957) | (7,852) |
Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance | 904,732 | ||
Payment for repurchase of ordinary shares | (48,678) | (64,000) | |
Proceeds from issuance of ordinary shares prior to Initial Public Offering | 200,000 | ||
Proceeds from exercise of share options | 1,039 | 1,070 | |
Subscription contributions from shareholders | 10 | ||
Net cash (used in)/ generated from financing activities | (38,582) | 1,041,802 | (172) |
Effect of exchange rate changes on cash and cash equivalents, restricted cash | (7,954) | 2,879 | 2,903 |
Net (decrease)/ increase in cash and cash equivalents, restricted cash | (831,415) | 805,621 | (54,332) |
Cash and cash equivalents, restricted cash at the beginning of year | 964,576 | 158,955 | 213,287 |
Cash and cash equivalents, restricted cash at the end of year | 133,161 | 964,576 | 158,955 |
Reportable Legal Entities | Parent Company | |||
Statement of Cash Flows | |||
Net cash generated from/(used in) operating activities | (1,408) | 11,255 | 498 |
Advance to, and investment in subsidiaries | (1,037,244) | (151,719) | |
Proceeds from subsidiaries | 28,842 | ||
Net cash used in investing activities | 28,842 | (1,037,244) | (151,719) |
Proceeds from issuance of Class A ordinary shares upon U.S. IPO and related over-allotment option, net of cost of issuance | 904,732 | ||
Payment for repurchase of ordinary shares | (48,678) | (64,000) | |
Proceeds from issuance of ordinary shares prior to Initial Public Offering | 200,000 | ||
Proceeds from issuance of Class A ordinary shares upon the Dual Primary Listing, net of cost of issuance | 9,057 | ||
Proceeds from exercise of share options | 1,039 | 1,070 | |
Subscription contributions from shareholders | 10 | ||
Net cash (used in)/ generated from financing activities | (38,582) | 1,041,802 | 10 |
Net (decrease)/ increase in cash and cash equivalents, restricted cash | (11,148) | 15,813 | (151,211) |
Cash and cash equivalents, restricted cash at the beginning of year | 15,833 | 20 | 151,231 |
Cash and cash equivalents, restricted cash at the end of year | $ 4,685 | $ 15,833 | $ 20 |