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UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
¥ in Thousands, $ in Thousands
9 Months Ended
Sep. 30, 2024
CNY (¥)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
CNY (¥)
Cash flows from operating activities:      
Net income ¥ 977,577 $ 139,302 ¥ 1,477,117
Adjustments to reconcile net income to net cash      
Depreciation of fixed assets 110,268 15,713 213,913
Amortization of intangible assets 66,788 9,517 85,051
Amortization of licensed copyrights 5,759,452 820,715 5,155,960
Amortization and impairment of produced content 4,790,771 682,679 5,302,167
Provision/(reversal) of credit losses (9,882) (1,408) 34,498
Unrealized foreign exchange loss/(gain) (240,076) (34,211) 43,876
Gain on disposal of fixed assets (14,597) (2,080) (13,359)
(Gain)/loss on disposal of subsidiaries or business 22,265 3,173 (89,571)
Accretion on convertible senior notes and others 244,556 34,849 242,701
Barter transaction revenue (898,941) (128,098) (358,227)
Share-based compensation 425,457 60,627 484,156
Share of losses/(gains) from equity method investments (16,041) (2,286) 49,965
Fair value change and impairment of long-term investments 166,082 23,666 278,134
Deferred income tax benefit (790) (113) (784)
Other non-cash income (47,160) (6,720) (230,529)
Changes in operating assets and liabilities      
Accounts receivable (31,850) (4,539) (105,562)
Amounts due from related parties (60,839) (8,669) (183,034)
Licensed copyrights (4,882,204) (695,709) (4,719,258)
Produced content (5,731,013) (816,663) (4,921,055)
Prepayments and other assets 489,845 69,802 (147,797)
Accounts payable 769,067 109,591 (74,456)
Amounts due to related parties 327,905 46,726 123,489
Customer advances and deferred revenue (52,342) (7,459) 273,566
Accrued expenses and other liabilities (88,798) (12,654) (73,650)
Other non-current liabilities (484,458) (69,035) (129,297)
Net cash provided by operating activities 1,591,042 226,716 2,718,014
Cash flows from investing activities:      
Acquisition of fixed assets (58,428) (8,326) (17,740)
Acquisition of intangible assets (69,059) (9,841) (47,958)
Purchase of long-term investments (37,790) (5,385) (125,386)
Proceeds from disposal of long-term investments 21,130 3,011 89,576
Film investments made as passive investor (8,000) (1,140) (17,600)
Proceeds from film investments as passive investor 10,716 1,527 7,539
Loans provided to related parties (1,424,880) (203,044) (10,000)
Purchases of available-for-sale debt securities (438,000) (62,415) (1,358,447)
Maturities of available-for-sale debt securities 443,000 63,127 1,154,892
Other investing activities 12,150 1,731 16,243
Net cash used for investing activities (1,549,161) (220,755) (308,881)
Cash flows from financing activities:      
Repayments of loans from related parties 0 0 (650,000)
Proceeds from short-term loans 4,026,345 573,750 3,642,179
Repayments of short-term loans (3,244,902) (462,395) (3,629,249)
Proceeds from long-term loans 445,261 63,449 0
Repayments of long-term loans (11,500) (1,639) 0
Proceeds from issuance of convertible senior notes, net of issuance costs 0 0 4,415,401
Repayments or redemption of convertible senior notes (2,914,233) (415,275) (11,434,497)
Acquisition of noncontrolling interests in subsidiaries (26,819) (3,822) 0
Proceeds from issuance of ordinary shares in the follow-on offering, net of issuance costs 0 0 3,391,277
Proceeds from exercise of share options 41,067 5,852 64,173
Finance lease payments (14,406) (2,053) (17,347)
Dividends paid to noncontrolling interest shareholders (22,503) (3,207) (44,525)
Proceeds from other financing activities 273,845 39,023 0
Repayment for other financing activities (36,695) (5,229) 0
Net cash used for financing activities (1,484,540) (211,546) (4,262,588)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (46,089) (6,560) 123,484
Net decrease in cash, cash equivalents and restricted cash (1,488,748) (212,145) (1,729,971)
Cash, cash equivalents and restricted cash at the beginning of the period 5,280,608 752,481 7,861,556
Cash, cash equivalents and restricted cash at the end of the period 3,791,860 540,336 6,131,585
Supplemental disclosures of cash flow information:      
Acquisition of fixed assets included in accounts payable 39,515 5,631 9,764
Reconciliation of cash and cash equivalents and restricted cash:      
Cash and cash equivalents 3,241,336 $ 461,887 4,230,587
Restricted cash 0   6,120
Long-term restricted cash [1] 550,524   1,894,878
Total cash and cash equivalents and restricted cash shown in the statements of cash flows ¥ 3,791,860   ¥ 6,131,585
[1] Long-term restricted cash included in “Prepayments and other assets” on the condensed consolidated balance sheets mainly represents collateral to repayments of PAG Notes (Note 8).