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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
¥ in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2017
CNY (¥)
¥ / shares
shares
Dec. 31, 2017
USD ($)
$ / shares
shares
Dec. 31, 2016
CNY (¥)
¥ / shares
shares
Dec. 31, 2015
CNY (¥)
¥ / shares
shares
Net revenues        
Other revenues ¥ 182,422 $ 28,038 ¥ 257,638 ¥ 294,200
Total net revenues 11,594,792 1,782,088 8,204,050 5,897,249
Cost of revenues (7,026,402) [1] (1,079,938) (5,103,430) [2] (3,579,744) [3]
Gross profit 4,568,390 702,150 3,100,620 2,317,505
Operating expenses        
Research and development expenses (781,886) [1] (120,174) (675,230) [2] (548,799) [3]
Sales and marketing expenses (691,281) [1] (106,248) (387,268) [2] (312,870) [3]
General and administrative expenses (544,641) [1] (83,710) (482,437) [2] (358,474) [3]
Goodwill impairment (2,527) [1],[4] (388) (17,665) [2],[4] (310,124) [3]
Fair value change of contingent consideration 0 0 0 [2] 292,471 [3]
Total operating expenses (2,020,335) [1] (310,520) (1,562,600) [2] (1,237,796) [3]
Gain on deconsolidation and disposal of subsidiaries 37,989 5,839 103,960 0
Other income 113,187 17,397 129,504 82,300
Operating income 2,699,231 414,866 1,771,484 1,162,009
Gain on partial disposal of investments 45,861 7,049 25,061 0
Interest expense (32,122) (4,937) (81,085) (97,125)
Interest income 180,384 27,725 67,193 137,892
Foreign currency exchange (losses) gains, net (2,176) (334) 1,158 (38,099)
Other non-operating expenses 0 0 0 (2,165)
Income before income tax expenses 2,891,178 444,369 1,783,811 1,162,512
Income tax expenses (415,811) (63,909) (280,514) (178,327)
Income before share of income in equity method investments, net of income taxes 2,475,367 380,460 1,503,297 984,185
Share of income in equity method investments, net of income taxes 33,024 5,076 8,279 14,120
Net income (loss) 2,508,391 385,536 1,511,576 998,305
Less: Net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified non-controlling interest shareholders 15,156 2,329 (12,342) (34,938)
Net income attributable to YY Inc. 2,493,235 383,207 1,523,918 1,033,243
Other comprehensive income (loss):        
Unrealized gain (loss) of available-for-sale securities, net of nil tax (41,150) (6,325) 134,768 0
Foreign currency translation adjustments, net of nil tax (61,513) (9,454) (5,317) 4,414
Total comprehensive income ¥ 2,390,572 $ 367,428 ¥ 1,653,369 ¥ 1,037,657
Net income per common share        
-Basic (in CNY/dollars per share) | (per share) [5] ¥ 2.1 $ 0.32 ¥ 1.35 ¥ 0.92
-Diluted (in CNY/dollars per share) | (per share) [5] ¥ 2.07 $ 0.32 ¥ 1.32 ¥ 0.9
Weighted average number of common shares used in calculating net income per common share        
-Basic (in shares) [5] 1,186,460,144 1,186,460,144 1,127,343,312 1,125,189,978
-Diluted (in shares) [5] 1,216,637,741 1,216,637,741 1,216,111,329 1,150,831,163
ADSs [Member]        
Net income per common share        
-Basic (in CNY/dollars per share) | (per share) [5] ¥ 42.03 $ 6.46 ¥ 27.04 ¥ 18.37
-Diluted (in CNY/dollars per share) | (per share) [5] ¥ 41.33 $ 6.35 ¥ 26.4 ¥ 17.96
Weighted average number of common shares used in calculating net income per common share        
-Basic (in shares) [5] 59,323,007 59,323,007 56,367,166 56,259,499
-Diluted (in shares) [5] 60,831,887 60,831,887 60,805,566 57,541,558
Live streaming [Member]        
Net revenues        
Total net revenues ¥ 10,670,954 $ 1,640,096 ¥ 7,027,227 ¥ 4,539,857
Online games [Member]        
Net revenues        
Total net revenues 543,855 83,589 634,325 771,882
Membership [Member]        
Net revenues        
Total net revenues ¥ 197,561 $ 30,365 ¥ 284,860 ¥ 291,310
[1] Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137 Share based compensation expenses 217,553 40,108 257,661
[2] Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 9,893 5,677 324 15,894 Research and development expenses 53,085 19,538 6,193 78,816 Sales and marketing expenses 2,781 326 - 3,107 General and administrative expenses 19,523 26,557 13,389 59,469 Share based compensation expenses 85,282 52,098 19,906 157,286
[3] Share based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya broadcasting 100 Education Total RMB RMB RMB RMB Cost of revenues 20,932 2,642 389 23,963 Research and development expenses 52,395 11,759 6,797 70,951 Sales and marketing expenses 2,628 655 - 3,283 General and administrative expenses 49,137 5,425 32,613 87,175 Share based compensation expenses 125,092 20,481 39,799 185,372
[4] The Group performs its annual goodwill impairment test of each reporting unit as of October 1, or more frequently, if certain events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the entity-specific factors, including, but not limited to, stock price volatility, market capitalization relative to net book value, and projected revenue, market growth and operating results.In December 2016, the Group has identified impairment indicator for 100-Online Education Technology (Beijing) Co., Ltd.(“100-Online”) as well as impairment indicator for Bilin Online. Based on the results of the impairment assessment, an impairment charge of RMB13,804 for 100-Online and an impairment charge of RMB3,861 for Bilin Online were recognized, respectively.In December 2017, the Group has identified impairment indicator for Guangzhou Zhuque Information Technology Co., Ltd. (“Zhuque”). Based on the results of the impairment assessment, an impairment charge of RMB2,527 for Zhuque was recognized.The above goodwill impairment assessments on 100-Online, Bilin Online and Zhuque adopted the income approach and considered a combination of factors, including, but not limited to, market conditions, expected future cash flows, growth rates and discount rates, which required the Group to make certain estimates and assumptions regarding industry economic factors and future profitability of the business.
[5] Each ADS represents 20 common shares.