Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Summary information by segment

The following table presents summary information by segment:

For the year ended December 31, 2017:

	YY Live		Huya		Total
	RMB		RMB		RMB
Net revenues
Live streaming		8,601,418		2,069,536		10,670,954
Online games		511,175		32,680		543,855
Membership		189,489		8,072		197,561
Others		107,894		74,528		182,422
Total net revenues		9,409,976		2,184,816		11,594,792
Cost of revenues(1)		(5,096,538)		(1,929,864)		(7,026,402)
Gross profit		4,313,438		254,952		4,568,390
Operating expenses(1)
Research and development expenses		(611,726)		(170,160)		(781,886)
Sales and marketing expenses		(603,989)		(87,292)		(691,281)
General and administrative expenses		(442,646)		(101,995)		(544,641)
Goodwill impairment		(2,527)		-		(2,527)
Total operating expenses		(1,660,888)		(359,447)		(2,020,335)
Gain on deconsolidation and disposal of subsidiaries		37,989		-		37,989
Other income		103,558		9,629		113,187
Operating income (loss)		2,794,097		(94,866)		2,699,231
Interest expense		(32,122)		-		(32,122)
Interest income		166,335		14,049		180,384
Gain on partial disposal of investments		45,861		-		45,861
Foreign currency exchange losses, net		(2,176)		-		(2,176)
Income (loss) before income tax expenses		2,971,995		(80,817)		2,891,178
Income tax expenses		(415,811)		-		(415,811)
Income (loss) before share of income (loss) in equity method investments, net of income taxes		2,556,184		(80,817)		2,475,367
Share of income (loss) in equity method investments, net of income taxes		33,175		(151)		33,024
Net income (loss)		2,589,359		(80,968)		2,508,391

(1) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

	YY Live		Huya		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

The following table presents summary information by segment:

For the year ended December 31, 2016:

	YY Live		Huya		100 Education		Total
	RMB		RMB		RMB		RMB
Net revenues
Live streaming		6,235,249		791,978		-		7,027,227
Online games		634,325		-		-		634,325
Membership		284,860		-		-		284,860
Others		91,985		4,926		160,727		257,638
Total net revenues		7,246,419		796,904		160,727		8,204,050
Cost of revenues(1)		(3,900,814)		(1,094,644)		(107,972)		(5,103,430)
Gross profit (loss)		3,345,605		(297,740)		52,755		3,100,620
Operating expenses(1)
Research and development expenses		(456,375)		(188,334)		(30,521)		(675,230)
Sales and marketing expenses		(259,040)		(68,746)		(59,482)		(387,268)
General and administrative expenses		(375,958)		(71,325)		(35,154)		(482,437)
Goodwill impairment		(3,861)		-		(13,804)		(17,665)
Fair value change of contingent consideration		-		-		-		-
Total operating expenses		(1,095,234)		(328,405)		(138,961)		(1,562,600)
Gain on deconsolidation and disposal of subsidiaries		103,960		-		-		103,960
Other income		129,504		-		-		129,504
Operating income (loss)		2,483,835		(626,145)		(86,206)		1,771,484
Gain on partial disposal of investments		25,061		-		-		25,061
Interest expense		(81,085)		-		-		(81,085)
Interest income		66,631		518		44		67,193
Foreign currency exchange losses, net		1,158		-		-		1,158
Income (loss) before income tax expenses		2,495,600		(625,627)		(86,162)		1,783,811
Income tax (expenses) benefits		(294,529)		-		14,015		(280,514)
Income (loss) before share of income (loss) in equity method investments, net of income taxes		2,201,071		(625,627)		(72,147)		1,503,297
Share of income (loss) in equity method investments, net of income taxes		8,390		-		(111)		8,279
Net income (loss)		2,209,461		(625,627)		(72,258)		1,511,576

(1) Share based compensation was allocated in cost of revenues and operating expenses as follows:

	YY Live		Huya		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

For the year ended December 31, 2015:

	YY Live		Huya		100 Education		Total
	RMB		RMB		RMB		RMB
Net revenues
Live streaming		4,183,533		356,324		-		4,539,857
Online games		771,882		-		-		771,882
Membership		291,310		-		-		291,310
Others		170,426		-		123,774		294,200
Total net revenues		5,417,151		356,324		123,774		5,897,249
Cost of revenues(1)		(2,784,637)		(668,493)		(126,614)		(3,579,744)
Gross profit (loss)		2,632,514		(312,169)		(2,840)		2,317,505
Operating expenses(1)
Research and development expenses		(359,598)		(152,351)		(36,850)		(548,799)
Sales and marketing expenses		(229,295)		(48,303)		(35,272)		(312,870)
General and administrative expenses		(233,086)		(33,318)		(92,070)		(358,474)
Goodwill impairment		(128,035)		-		(182,089)		(310,124)
Fair value change of contingent consideration		107,306		-		185,165		292,471
Total operating expenses		(842,708)		(233,972)		(161,116)		(1,237,796)
Other income		82,300		-		-		82,300
Operating income (loss)		1,872,106		(546,141)		(163,956)		1,162,009
Interest expense		(97,125)		-		-		(97,125)
Interest income		137,759		-		133		137,892
Foreign currency exchange losses, net		(38,099)		-		-		(38,099)
Other non-operating expenses		(2,165)		-		-		(2,165)
Income (loss) before income tax expenses		1,872,476		(546,141)		(163,823)		1,162,512
Income tax (expenses) benefits		(193,064)		-		14,737		(178,327)
Income (loss) before share of income in equity method investments, net of income taxes		1,679,412		(546,141)		(149,086)		984,185
Share of income in equity method investments, net of income taxes		14,120		-		-		14,120
Net income (loss)		1,693,532		(546,141)		(149,086)		998,305

(1) Share-based compensation was allocated in cost of revenues and operating expenses as follows:

	YY Live		Huya		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