Intangible Assets, Net

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

8. INTANGIBLE ASSETS, NET

Finite-lived intangible assets

	As of December 31, 2020
	Gross carrying value		Accumulated amortization and impairment			Net carrying value
	RMB		RMB			RMB
Intellectual property rights (i)		473,360		(190,057	)		283,303
Traffic acquisition agreement (ii)		546,150		(546,150	)		—
Published mobile games (iii)		499,880		(462,852	)		37,028
Trademarks (ii)		165,281		(110,854	)		54,427
Online literature		151,168		(53,645	)		97,523
Domain names		186,650		(108,671	)		77,979
Technology (iii)		101,730		(49,996	)		51,734
Others (ii)		31,738		(21,318	)		10,420
		2,155,957		(1,543,543	)		612,414

	As of December 31, 2021
	Gross carrying value		Accumulated amortization and impairment			Net carrying value		Net carrying value
	RMB		RMB			RMB		US$
Intellectual property rights (i)		505,546		(223,358	)		282,188		44,281
Traffic acquisition agreement (ii)		546,150		(546,150	)		—		—
Published mobile games (iii)		514,664		(491,614	)		23,050		3,617
Trademarks (ii)		165,292		(116,589	)		48,703		7,643
Online literature		155,085		(76,433	)		78,652		12,342
Domain names		188,388		(116,239	)		72,149		11,322
Technology (iii)		101,730		(70,342	)		31,388		4,925
Others (ii)		31,738		(22,563	)		9,175		1,440
		2,208,593		(1,663,288	)		545,305		85,570

Intangible assets	As of December 31,
	2020		2021		2021
	RMB		RMB		US$
Finite-lived intangible assets		612,414		545,305		85,570
Indefinite-lived intangible assets		14,784		—		—
Total		627,198		545,305		85,570

(i) Intellectual property rights include various rights the Company acquires either individually or in a bundle to broadcast, operate, publish, translate, distribute and/or adapt various forms of media, including but not limited to online games, literature and films.

(ii) In February 2018, the Company entered into a share purchase agreement with Baidu, Inc. (“Baidu”), pursuant to which the Company issued an aggregate of 36,860,691 Class B ordinary shares to Baidu in exchange for an asset acquisition of traffic acquisition agreement, trademarks and non-compete amounting to RMB599,150. As consideration for the issuance of such shares and subject to the conditions set forth in the share purchase agreement, Baidu agreed to (i) undertake certain non-compete obligations towards the Company with respect to the online movie ticket and show ticket booking business of Baidu and its affiliates; (ii) direct user traffic related to such ticket business to the Company; (iii) provide the Company with technological support with respect to the Company’s ticket booking business; (iv) license certain trademarks and certain intellectual property rights to the Company; and (v) enter into a ticket business cooperation agreement with the Company, which has been signed concurrently. The transaction was closed on April 12, 2018 and accounted for as an asset acquisition, whereby intangible assets were recorded by the Company. The useful lives of traffic acquisition agreement and non-compete are four years and the useful life of trademarks is two years.

In 2019, the Group revised the useful life of traffic acquisition agreement from 4 years to 1.72 years due to the decrease in economic benefit expected from the acquired set of assets for the remaining contractual period of the agreement. As of December 31, 2019, the acquired set of assets are fully amortized.

For the year ended December 31, 2019, the amount of amortization expense and net loss included in the Group’s consolidated statement of comprehensive loss were RMB479,497 and RMB10,276,739, net loss per Class A and Class B ordinary share was RMB2.02, compared to amortization expense and net loss of RMB159,538 and RMB9,956,780, net loss per Class A and Class B ordinary share of RMB1.96, if the useful life of the traffic acquisition agreement remain unchanged. 

(iii) The addition of intangible assets RMB707,000 is generated from the acquisition of Skymoons occurred on July 17, 2018, of which RMB366,000 was attributed to published mobile games with a useful life of two years, RMB101,000 attributable to technology with a useful life of five years and RMB240,000 attributable to mobile games in development. Once the mobile games in development achieve technological feasibility, they will be amortized over a maximum of four years.

For the year ended December 31, 2019, the Group recognized RMB99,096 of impairment charges for mobile games in development because the carrying amount of mobile games in development exceeded its fair value. The carrying amount of mobile games in development was RMB14,784 and nil, as of December 31, 2020 and 2021, respectively.

RMB99,096, RMB15,391 and nil of impairment charges were recognized on intangible assets and are included in “Cost of revenues” in the consolidated statements of comprehensive loss for the years ended December 31, 2019, 2020 and 2021, respectively.

Amortization expense was RMB873,664, RMB302,188 and RMB162,182 (US$25,450) for the years ended December 31, 2019, 2020 and 2021, respectively. Estimated amortization expense relating to the existing intangible assets for each of the next five years is as follows:

	RMB		US$
Within 1 year		144,108		22,614
Between 1 and 2 years		99,893		15,675
Between 2 and 3 years		75,453		11,840
Between 3 and 4 years		70,132		11,005
Between 4 and 5 years		58,590		9,194