Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2019

a)	The table below sets forth the major related parties and their relationships with the Group:

Name of related parties

Relationship with the Group

Baidu and its subsidiaries (“Baidu Group”)

Others

Controlling shareholder of the Company

Equity investees

Xiaomi Group ceased to be a principal owner of the Company under ASC topic 850, Related Party Disclosures on October 26, 2017, hence the related party transactions with Xiaomi Group for the year ended December 31, 2017 includes transactions that occurred from January 1, 2017 to October 26, 2017.

b)	The Group had the following related party transactions with the major related parties:

	For the year ended December 31,
	2017		2018		2019		2019
	RMB		RMB		RMB		US$
Membership services
Membership services revenue earned from memberships sold to Baidu Group		4,185		19,855		20,886		3,000
Membership services revenue earned from memberships sold by Xiaomi Group		81,450		—		—		—
Membership services revenue earned from memberships sold by Others		—		126		6,361		914
Online advertising revenues
Advertising services provided to Baidu Group		18,337		189,461		67,452		9,689
Advertising services provided to Xiaomi Group		9,249		—		—		—
Advertising services provided to Others		—		13,347		9,674		1,390
Content distribution revenues
Content licensed to equity investees		—		88,457		443,503		63,705
Other revenues
Other services provided to Baidu Group		58,529		29,296		12,343		1,773
Other services provided to Xiaomi Group		4,625		—		—		—
Others		5,157		—		36,534		5,248
Interest income
Loan due from equity investees		—		2,202		4,856		698
		181,532		342,744		601,609		86,417
Cost of revenues
License fees to Baidu Group		8,315		8,923		23,064		3,313
Bandwidth fee to Baidu Group		88,945		601,065		976,523		140,269
Traffic acquisition and other services provided by Baidu Group (i)		—		126,644		479,497		68,875
Commissions to Xiaomi Group		42,565		—		—		—
Others (iii)		1,817		52,484		86,766		12,463
Selling, general and administrative
Advertising services provided by Baidu Group		36,074		10,844		1,825		262
Traffic acquisition service provided by Baidu Group (ii)		29,932		—		—		—
Advertising services provided by Xiaomi Group		82,773		—		—		—
Others		139		822		3,756		540
Research and development
Cloud services provided by Baidu Group		2,833		5,114		19,486		2,799
Interest expenses
Loan due to Baidu Group		168,154		—		—		—
		461,547		805,896		1,590,917		228,521

(i)

As disclosed in Note 9, on April 12, 2018, the Company issued to Baidu an aggregate of 36,860,691 Class B ordinary shares pursuant to a share purchase agreement with Baidu entered into in February 2018, in exchange for Baidu providing traffic acquisition and other services in relation with ticket booking service, which was recorded as intangible assets. For the years ended December 31, 2018 and 2019, RMB126,644, RMB479,497 (US$68,875) was recognized as cost of revenues.

(ii)

Entered into between the Company and Baidu on March 15, 2010 (amended and restated on August 15, 2010 and December 6, 2011), the services agreement whereby Baidu Group provides traffic acquisition services was recorded as a favorable contract asset and RMB29,932, RMB nil, and RMB nil (US$ nil) was recognized as selling, general and administrative expense for the years ended December 31, 2017, 2018 and 2019, respectively. In January 2018, the Company and Baidu agreed to terminate the traffic acquisition service contract in exchange for Baidu paying a fee of US$27,000 to the Company. The excess of the fee received by the Company over the book value of the recorded favorable contract asset was accounted for as a deemed contribution from the controlling shareholder, amounting to RMB104,200.

(iii)

The Group entered into a one year revenue sharing arrangement with an equity investee of RMB100,000 in the year ended December 31, 2018. RMB nil, RMB32,642, and RMB67,358 (US$9,675) was recognized as cost of revenues for the years ended December 31, 2017, 2018 and 2019, respectively.

For the years ended December 31, 2017, 2018 and 2019, the Group purchased content from equity investees in an amount of RMB4,250, RMB182,897 and RMB909,450 (US$130,634), respectively.

c)	The Group had the following related party balances with the major related parties:

	As of December 31,
	2018		2019		2019
	RMB		RMB		US$
Amounts due from related parties, current:
Due from Baidu Group (i)		102,960		35,560		5,108
Loans receivable from Others (ii)		103,980		105,934		15,216
Due from Others (iii)		74,770		70,499		10,127
		281,710		211,993		30,451
Amounts due from related parties, non-current:
Due from Others		52,800		172,200		24,735
		52,800		172,200		24,735

	As of December 31,
	2018		2019		2019
	RMB		RMB		US$
Amounts due to related parties, current:
Loans due to Baidu Group (iv)		50,000		50,000		7,182
Due to Baidu Group (v)		421,942		1,014,283		145,693
Deferred revenue in relation to services to be provided to an equity investee (vi)		94,785		169,677		24,373
Due to Others		125,663		370,298		53,189
		692,390		1,604,258		230,437
Amounts due to related parties, non-current:
Loans due to Baidu Group (iv)		650,000		650,000		93,367
Due to Baidu Group (v)		—		1,570		226
Deferred revenue in relation to services to be provided to an equity investee (vi)		631,370		410,187		58,920
Due to Others		—		126		17
		1,281,370		1,061,883		152,530

(i)	The balance mainly represents amounts due from Baidu Group for advertising and other services.

(ii)	The balance mainly represents loans provided to the Group’s equity investees with an interest rate of 5% that will mature in 2020.

(iii)

The balance mainly represents amounts due from or paid in advance to its equity investees for content distribution service.

(iv)	As of December 31, 2018 and 2019, the total outstanding balance represents an interest-free loan of RMB50,000, which is due on demand and an interest-free loan of RMB650,000 provided by Baidu in January 2018 that will mature in January 2023.

(v)	The balance as of December 31, 2018 and 2019, represents accrued expenses for bandwidth and cloud services provided by Baidu Group.

(vi)	The balance as of December 31, 2018 and 2019 mainly represents deferred revenue in relation to content distribution, licenses of intellectual property and traffic support services to be provided to an equity investee.