REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
N/A |
* | Not for trading, but only in connection with the listing of the American depositary shares on the Nasdaq Global Select Market. |
☒ | |
Accel e rated filer |
|
☐ | |
|
Non-accelerated filer | ☐ | ||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
Emerging growth company |
International Financial Reporting Standards as issued | Other ☐ | |||||
by the International Accounting Standards Board |
|
☐ |
|
Page |
||||||
ii |
||||||
iv |
||||||
1 |
||||||
ITEM 1. |
1 |
|||||
ITEM 2. |
1 |
|||||
ITEM 3. |
1 |
|||||
ITEM 4. |
59 |
|||||
ITEM 4A. |
97 |
|||||
ITEM 5. |
97 |
|||||
ITEM 6. |
115 |
|||||
ITEM 7. |
124 |
|||||
ITEM 8. |
125 |
|||||
ITEM 9. |
127 |
|||||
ITEM 10. |
127 |
|||||
ITEM 11. |
136 |
|||||
ITEM 12. |
136 |
|||||
138 |
||||||
ITEM 13. |
138 |
|||||
ITEM 14. |
138 |
|||||
ITEM 15. |
139 |
|||||
ITEM 16.A. |
140 |
|||||
ITEM 16.B. |
140 |
|||||
ITEM 16.C. |
140 |
|||||
ITEM 16.D. |
140 |
|||||
ITEM 16.E. |
141 |
|||||
ITEM 16.F. |
141 |
|||||
ITEM 16.G. |
141 |
|||||
ITEM 16.H. |
142 |
|||||
142 |
||||||
ITEM 17. |
142 |
|||||
ITEM 18. |
142 |
|||||
ITEM 19. |
142 |
• | “active users” refers to users who visited our platform through a PC or mobile app at least once in a given period; the number of active PC users is measured as the number of independent cookies generated by our website when users visited our platform through a PC in a given period, and the number of active mobile users is measured as the number of mobile devices that launched our mobile apps in a given period. The number of active users is calculated by treating each distinguishable independent cookie or mobile device as a separate user even though some individuals may access our platform with more than one independent cookie or using more than one mobile device and multiple individuals may access our services with the same independent cookie or using the same mobile device; |
• | “ADSs” refers to the American Depositary Shares, every 10 ADSs represent one ordinary share, par value US$0.0001 per share; |
• | “annual paying users” refer to the total paying users for a given year after removing double-counting because of multiple payments; |
• | “ARPPU” refers to average livestreaming revenue per paying user in a given period; |
• | “average mobile MAUs” for a given period of time is calculated by dividing (i) the sum of active mobile users for each month of such period by (ii) the number of months in such period; |
• | “average next-month active user retention rate” for any period is calculated by dividing (i) the sum of next-month active user retention rate for each month of such period by (ii) the total number of months in such period; |
• | “average total eSports MAU” refers to the average total eSports MAUs during a given period of time calculated by dividing (i) the sum of active users, including active PC users and active mobile users who accessed game-themed channels on our platform in each month of such period by (ii) the number of months in such period; |
• | “Beijing Fengye” refers to Beijing Fengye Equity Investment Center (Limited Partnership); |
• | “Beijing Phoenix” refers to Beijing Phoenix Rich Investment Management Center (Limited Partnership); |
• | “CDN” refers to content delivery network; |
• | “China” or “PRC” refer to the People’s Republic of China, excluding, for the purposes of this annual report only, Taiwan, Hong Kong and Macau; |
• | “Douyu Education” refers to Wuhan Douyu Education Consulting Co., Ltd.; |
• | “Douyu Yule” refers to Wuhan Douyu Culture Network Technology Co., Ltd.; |
• | “Gogo Glocal” refers to Gogo Glocal Holding Limited, an exempted company incorporated under the laws of the Cayman Islands; |
• | “Guangzhou Douyu” refers to Guangzhou Douyu Internet Technology Co., Ltd.; |
• | “Huya” refers to HUYA Inc.; |
• | “Linzhi Lichuang” refers to Linzhi Lichuang Information Technology Co., Ltd., an entity controlled by Tencent Holdings Limited; |
• | “MAUs” refers to the number of active users, including active PC users and active mobile users in a given month; |
• | “Merger Agreement” refers to the Agreement and Plan of Merger dated October 12, 2020 entered into by DouYu, Huya, Tiger Company Ltd. and Nectarine; |
• | “Nectarine” refers to Nectarine Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited; |
• | “next-month active user retention rate” is calculated by dividing (i) the sum of active users who visited our platform through a PC or mobile app at least once in the next month after a given month by (ii) the sum of all active users in that given month; |
• | “ordinary shares” refers to our ordinary shares of par value US$0.0001 per share; |
• | “P2P” refers to peer-to-peer; |
• | “paying user” for any period in the context of our operating data refers to a registered user that has purchased virtual gifts on our platform at least once during the relevant period. A paying user is not necessarily a unique user, however, as a unique user may set up multiple paying user accounts on our platform, and consequently, the number of paying users we present in this annual report may not equal to the number of unique individuals who made purchases on our platform for any given period of time; |
• | “Penguin” or “Penguin Business” refers to the game livestreaming business operated by the Tencent group under the “Penguin e-Sports” brand; |
• | “quarterly average paying users” refers to the average paying users for each quarter during a given period of time calculated by dividing (i) the sum of paying users for each quarter of such period by (ii) the number of quarters in such period; |
• | “Reassignment” refers to the proposed reassignment of the Penguin Business by Nectarine to DouYu, whereby upon its completion, we will beneficially own and operate the Penguin Business; |
• | “Reassignment Agreement” refers to the reassignment agreement, dated October 12, 2020, by and between Nectarine and us; |
• | “registered streamer” refers to a user that has been registered on our platform as a streamer; |
• | “registered user” refers to a user that has registered and logged onto our platform at least once since registration. We calculate registered users as the cumulative number of user accounts at the end of the relevant period that have logged onto our platform at least once after registration. Each individual user may have more than one registered user account, and consequently, the number of registered users we present in this annual report may not equal to the number of unique individuals who are our registered users; |
• | “retention rate” refers to the percentage of users who make at least one repeat use after a certain duration; |
• | “RMB” or “Renminbi” refers to the legal currency of the People’s Republic of China; |
• | “RSU” refers to restricted share unit; |
• | “Tencent” refers to Tencent Holdings Limited; |
• | “US$,” “dollars” or “U.S. dollars” refers to the legal currency of the United States; |
• | “We,” “Us,” “Our company,” “the Group,” “Our,” or “Douyu” refers to DouYu International Holdings Limited, a Cayman Islands exempted company and its subsidiaries, and, in the context of describing our consolidated financial information, business operations and operating data, the variable interest entities (“VIEs”) and their subsidiaries. As described elsewhere in this annual report, we do not own the VIEs, and the results of the VIEs’ operations only accrue to us through contractual arrangements between the VIEs, and the VIEs’ nominee shareholders, and certain of our subsidiaries. Accordingly, in appropriate contexts we will describe the VIEs’ activities separately from those of our direct and indirect owned subsidiaries and our use of the terms “we,” “us,” and “our” may not include the VIEs in those contexts; |
• | “Wuhan Douyu” refers to Wuhan Douyu Internet Technology Co., Ltd.; |
• | “Wuhan Ouyue” refers to Wuhan Ouyue Online TV Co., Ltd.; |
• | “Wuhan Yuwan” refers to Wuhan Yuwan Culture Media Co., Ltd.; |
• | “Yu Leyou” refers to Wuhan Yu Leyou Internet Technology Co., Ltd.; |
• | “Yuxing Tianxia” refers to Wuhan Yuxing Tianxia Culture Media Co., Ltd.; |
• | “Yuyin Raoliang” refers to Wuhan Yuyin Raoliang Culture Media Co., Ltd.; and |
• | “Zhejiang Ouyue” refers to Zhejiang Ouyue Online TV Co., Ltd., which was subsequently renamed Wuhan Ouyue. |
• | our goals and growth strategies; |
• | our future business development, results of operations and financial condition; |
• | relevant government policies and regulations relating to our business and industry; |
• | our expectation regarding the use of proceeds from our initial public offering in July 2019; |
• | general economic and business condition in China; |
• | status of the COVID-19 pandemic; |
• | assumptions underlying or related to any of the foregoing; |
• | other factors that may affect our financial condition, liquidity and results of operations; and |
• | other risk factors discussed under “Item 3. Key Information—3.D. Risk Factors.” |
ITEM 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. |
KEY INFORMATION |
For the Year Ended December 31, 2019 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Net revenues (1) |
— | 7,207,666 | 4,794,355 | (4,718,791 | ) | 7,283,230 | ||||||||||||||
Total operating cost and expenses (1) |
(34,956 | ) | (6,246,296 | ) | (5,852,439 | ) | 4,718,791 | (7,414,900 | ) | |||||||||||
(Loss) income from operations |
(34,956 |
) |
961,370 |
(1,058,084 |
) |
— | (131,670 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other income (expenses) |
148,245 | 20,786 | (771 | ) | — | 168,260 | ||||||||||||||
Income(loss) from equity in affiliates |
— | 2,878 | (6,120 | ) | — | (3,242 | ) | |||||||||||||
Loss from equity in subsidiaries and the VIEs and VIEs’ subsidiaries (2) |
(73,536 | ) | — | — | 73,536 | — | ||||||||||||||
Net income (loss) |
39,753 |
985,034 |
(1,064,975 |
) |
73,536 |
33,348 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2020 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Net revenues (1) |
— | 8,697,485 | 2,305,426 | (1,401,037 | ) | 9,601,874 | ||||||||||||||
Total operating cost and expenses (1) |
(54,597 | ) | (8,234,402 | ) | (2,451,850 | ) | 1,401,037 | (9,339,812 | ) | |||||||||||
(Loss) income from operations |
(54,597 |
) |
463,083 |
(146,424 |
) |
— | 262,062 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other income (expenses) |
116,757 | (31,635 | ) | 56,245 | — | 141,367 | ||||||||||||||
Income(loss) from equity in affiliates |
— | 1,283 | 23 | — | 1,306 | |||||||||||||||
Income from equity in subsidiaries and the VIEs and VIEs’ subsidiaries (2) |
423,339 | — | — | (423,339 | ) | — | ||||||||||||||
Net income (loss) |
485,499 |
432,731 |
(90,156 |
) |
(423,339 |
) |
404,735 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2021 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Net revenues (1) |
— | 8,965,084 | 1,824,996 | (1,624,749 | ) | 9,165,331 | ||||||||||||||
Total operating cost and expenses (1) |
(110,279 | ) | (8,623,534 | ) | (2,704,928 | ) | 1,624,749 | (9,813,992 | ) | |||||||||||
(Loss) income from operations |
(110,279 |
) |
341,550 |
(879,932 |
) |
— |
(648,661 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other income (expenses) |
33,568 | 32,066 | (22,094 | ) | — | 43,540 | ||||||||||||||
Income(loss) from equity in affiliates |
— | 14,503 | (29,631 | ) | — | (15,128 | ) | |||||||||||||
Loss from equity in subsidiaries and the VIEs and VIEs’ subsidiaries (2) |
(505,172 | ) | — | — | 505,172 | — | ||||||||||||||
Net income (loss) |
(581,883 |
) |
388,119 |
(931,657 |
) |
505,172 |
(620,249 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | The eliminations are mainly related to the service fees charged between our subsidiaries and VIEs. |
(2) | The eliminations are mainly related to the investment loss picked up from subsidiaries and VIEs. |
As of December 31, 2020 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
4,449,400 | 577,711 | 252,791 | — | 5,279,902 | |||||||||||||||
Restricted cash |
— | 11,243 | 632 | — | 11,875 | |||||||||||||||
Short-term bank deposits |
1,370,229 | 860,000 | — | — | 2,230,229 | |||||||||||||||
Accounts receivable, net |
— | 187,884 | 11,860 | — | 199,744 | |||||||||||||||
Prepayments |
890 | 63,120 | 2,247 | — | 66,257 | |||||||||||||||
Other current assets |
24,267 | 157,178 | 55,259 | — | 236,704 | |||||||||||||||
Investments in subsidiaries and the VIEs and VIEs’ subsidiaries (1) |
1,118,657 | 8,000 | — | (1,126,657 | ) | — | ||||||||||||||
Amounts due from internal companies (2) |
38,100 | — | 2,841,112 | (2,879,212 | ) | — | ||||||||||||||
Amounts due from related parties |
— | 8,465 | 580 | — | 9,045 | |||||||||||||||
Property and equipment, net |
— | 15,236 | 22,556 | — | 37,792 | |||||||||||||||
Intangible assets, net |
— | 102,837 | 38,835 | — | 141,672 | |||||||||||||||
Long-term bank deposits |
— | 100,000 | — | — | 100,000 | |||||||||||||||
Investments |
— | 302,111 | 198,548 | — | 500,659 | |||||||||||||||
Goodwill |
— | — | 12,933 | — | 12,933 | |||||||||||||||
Right-of-use |
— | 32,362 | 29,779 | — | 62,141 | |||||||||||||||
Other non-current assets |
— | 4,766 | 14,238 | — | 19,004 | |||||||||||||||
Total assets |
7,001,543 |
2,430,913 |
640,258 |
(4,005,869 |
) |
8,907,957 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accounts payable |
868,772 | 251,426 | (134,125 | ) | 986,073 | |||||||||||||||
Advances from customers |
9,700 | 1,211 | — | 10,911 | ||||||||||||||||
Deferred revenue |
12,311 | 225,282 | 4,420 | — | 242,013 | |||||||||||||||
Accrued expenses and other current liabilities |
19,119 | 208,531 | 156,391 | — | 384,041 | |||||||||||||||
Amounts due to internal companies (2) |
317 | — | 2,841,112 | (2,841,429 | ) | — | ||||||||||||||
Amounts due to related parties |
215,467 | 8,058 | — | 223,525 | ||||||||||||||||
Lease liabilities due within one year |
17,175 | 19,106 | — | 36,281 | ||||||||||||||||
Lease liabilities |
13,038 | 3,914 | — | 16,952 | ||||||||||||||||
Other liabilities |
30,779 | — | — | — | 30,779 | |||||||||||||||
Total liabilities |
62,526 |
1,557,965 |
3,285,638 |
(2,975,554 |
) |
1,930,575 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total shareholders’ equity |
6,939,017 |
872,948 |
195,732 |
(1,030,315 |
) |
6,977,382 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and shareholders’ equity |
7,001,543 |
2,430,913 |
3,481,370 |
(4,005,869 |
) |
8,907,957 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
4,206,259 | 189,363 | 60,784 | — | 4,456,406 | |||||||||||||||
Restricted cash |
— | 10,703 | — | — | 10,703 | |||||||||||||||
Short—term bank deposits |
956,355 | 820,000 | 300,000 | — | 2,076,355 | |||||||||||||||
Accounts receivable, net |
— | 179,041 | 12,348 | — | 191,389 | |||||||||||||||
Prepayments |
11,476 | 62,633 | 6,608 | — | 80,717 | |||||||||||||||
Other current assets |
14,644 | 293,554 | 68,169 | — | 376,367 | |||||||||||||||
Investments in subsidiaries and the VIEs and VIEs’ subsidiaries (1) |
1,158,039 | — | — | (1,158,039 | ) | — | ||||||||||||||
Amounts due from internal companies (2) |
— | — | 3,584,797 | (3,584,797 | ) | — | ||||||||||||||
Amounts due from related parties |
— | 36,879 | 280 | — | 37,159 | |||||||||||||||
Property and equipment, net |
— | 7,688 | 17,423 | — | 25,111 | |||||||||||||||
Intangible assets, net |
— | 124,766 | 36,774 | — | 161,540 | |||||||||||||||
Long—term bank deposits |
— | 100,000 | — | — | 100,000 | |||||||||||||||
Investments |
— | 252,607 | 238,818 | — | 491,425 | |||||||||||||||
Goodwill |
— | — | 12,637 | — | 12,637 | |||||||||||||||
Right-of-use |
— | 60,037 | 12,272 | — | 72,309 | |||||||||||||||
Other non-current assets |
— | 59,613 | 5,172 | — | 64,785 | |||||||||||||||
Total assets |
6,346,773 |
2,196,884 |
4,356,082 |
(4,742,836 |
) |
8,156,903 |
||||||||||||||
Accounts payable |
— | 851,736 | 104,531 | (132,139 | ) | 824,128 | ||||||||||||||
Advances from customers |
— | 7,474 | 2 | — | 7,476 | |||||||||||||||
Deferred revenue |
12,030 | 216,716 | 6,388 | — | 235,134 | |||||||||||||||
Accrued expenses and other current liabilities (2) |
57,801 | 255,958 | 144,569 | — | 458,328 | |||||||||||||||
Amounts due to internal companies |
310 | — | 3,584,487 | (3,584,797 | ) | — | ||||||||||||||
Amounts due to related parties |
— | 283,758 | 9,750 | — | 293,508 | |||||||||||||||
Lease liabilities due within one year |
— | 26,589 | 3,828 | — | 30,417 | |||||||||||||||
Lease liabilities |
— | 30,576 | 702 | — | 31,278 | |||||||||||||||
Other liabilities |
18,045 | — | — | — | 18,045 | |||||||||||||||
Total liabilities |
88,186 |
1,672,807 |
3,854,257 |
(3,716,936 |
) |
1,898,314 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total shareholders’ equity |
6,258,587 |
524,077 |
509,825 |
(1,025,900 |
) |
6,258,589 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and shareholders’ equity |
6,346,773 |
2,196,884 |
4,356,082 |
(4,742,836 |
) |
8,156,903 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | The eliminations are mainly related to the investments and loans to subsidiaries and VIEs. |
(2) | The eliminations are mainly related to the service fees balance between subsidiaries and VIEs. |
For the Year Ended December 31, 2019 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Net cash provided by operating activities (1) |
154,444 | 816,656 | 4,904,276 | (5,062,200 | ) | 813,176 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash used in investing activities (2) |
(151,882 | ) | (133,917 | ) | (112,636 | ) | 152,132 | (246,303 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by (used in) financing activities (2) |
3,270,974 | (1,363,044 | ) | 140,534 | (152,132 | ) | 1,896,332 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2020 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Net cash provided by operating activities (1) |
107,968 | 899,235 | 526,721 | (866,275 | ) | 667,649 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash used investing activities (2) |
(1,795,318 | ) | (1,179,666 | ) | (93,408 | ) | 455,772 | (2,612,620 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash (used in) provided by financing activities (2) |
(579,825 | ) | — | 556,402 | (455,772 | ) | (479,195 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2021 |
||||||||||||||||||||
Our Company |
VIEs and VIEs’ subsidiaries |
Our subsidiaries |
Eliminating adjustments between (i)our Company and our subsidiaries and (ii)the VIEs and VIEs’ subsidiaries |
Consolidated |
||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||
Net cash (used in) provided by operating activities (1) |
(1,763 | ) | (402,928 | ) | 756,307 | (937,874 | ) | (586,258 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash (used in) provided by investing activities (2) |
(10,685 | ) | 14,040 | (404,344 | ) | 381,860 | (19,129 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash (used in) provided by financing activities (2) |
(107,152 | ) | — | 381,860 | (381,860 | ) | (107,152 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | The eliminations are mainly related to the investments and loans to subsidiaries and VIEs. |
(2) | The eliminations are mainly related to the payment of service fees between subsidiaries and VIEs. |
3.A. |
[Reserved] |
3.B. |
Capitalization and Indebtedness |
3.C. |
Reason for the Offer and Use of Proceeds |
3.D. |
Risk Factors |
• |
Uncertainties in the interpretation and enforcement of PRC laws and regulations, including uncertainties regarding the enforcement of laws, and sudden or unexpected changes in policies, laws and regulations in China, could limit the legal protections available to you and us. |
• |
Regulation and censorship of information disseminated over mobile devices and the Internet in China may adversely affect our business and subject us to liability for streaming content or posted on our platform. |
• |
Adverse changes in global or China’s economic, political or social conditions or government policies could have a material adverse effect on our business, financial condition and results of operations. |
• |
Currently there is no law or regulation specifically governing virtual asset property rights and therefore it is not clear what liabilities, if any, online game operators may have for virtual assets. |
• |
The PCAOB is currently unable to inspect our auditor in relation to their audit work performed for our financial statements included elsewhere in this annual report. |
• |
Our ADSs may be delisted and our ADSs and shares may be prohibited from trading in the over-the-counter |
• |
The potential enactment of the Accelerating Holding Foreign Companies Accountable Act would decrease the number of non-inspection years from three years to two years, thus reducing the time period before our ADSs may be delisted or prohibited from over-the-counter over-the-counter |
• | If we fail to retain our existing users, keep them engaged or further grow our user base, our business, operation, profitability and prospects may be materially and adversely affected. |
• | We may fail to attract, cultivate and retain top streamers, which may materially and negatively affect our user retention and thus our business and operations. |
• | We may fail to offer attractive content, in particular popular game content, on our platform. |
• | We have significant reliance on the eSports industry. |
• | If we fail to effectively manage our growth and control our periodic spending to maintain such growth, our brand, business and results of operations may be materially and adversely affected. |
• | We have incurred net losses since inception, and we may continue to incur losses in the future. |
• | Our business may suffer if we fail to successfully implement our monetization strategies. |
• |
Our content monitoring system may not be effective in preventing misconduct by our platform users and misuse of our platform and such misconduct or misuse may materially and adversely impact our brand image, business and operating results. |
• | Our limited operating history with a relatively new business model in a relatively new market makes it difficult to evaluate our business and growth prospects. |
• | We face risks related to natural disasters, health epidemics and other outbreaks of contagious diseases. |
• |
There are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations, and rules relating to the agreements that establish the VIE structure for our operations in China, including potential future actions by the PRC government, which could affect the enforceability of our contractual arrangements with the VIEs and, consequently, significantly affect the financial condition and results of operations performance of Douyu. If the PRC government finds such agreements non-compliant with relevant PRC laws, regulations, and rules, or if these laws, regulations, and rules or the interpretation thereof change in the future, we could be subject to severe penalties or be forced to relinquish our interests in the VIEs. |
• |
Any failure by the VIEs or their shareholders to perform their obligations under our contractual arrangements with them would have a material adverse effect on our business. |
• |
The approval, filing or other requirements of the China Securities Regulatory Commission or other PRC government authorities may be required under PRC law in connection with our issuance of securities overseas. |
• |
We rely on contractual arrangements with the VIEs and their shareholders for our operations in China, which may not be as effective in providing operational control as direct ownership. |
• |
We may lose the ability to use and enjoy assets held by the VIEs and their subsidiaries that are important to our business if the VIEs and their subsidiaries declare bankruptcy or become subject to a dissolution or liquidation proceeding. |
• |
Contractual arrangements we have entered into with the VIEs may be subject to scrutiny by the PRC tax authorities. A finding that we owe additional taxes could negatively affect our financial condition and the value of your investment. |
• |
The market price for our ADSs may be volatile. |
• |
If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for our ADSs and trading volume could decline. |
• |
If securities or industry analysts do not publish favorable research, or if they adversely change their recommendations regarding the ADSs, the market price for the ADSs and trading volume could decline. |
• | We were likely a passive foreign investment company, or PFIC, for 2021 and there is a significant risk that we will be a PFIC for 2022 and possibly subsequent taxable years. |
• | the auditor’s name and location; |
• | the percentage of issuer’s shares owned by governmental entities; |
• | whether governmental entities in the applicable foreign jurisdiction where the auditor resides have a controlling financial interest in the issuer; |
• | the name of each official of the Chinese Communist Party who is a member of the board of the issuer; and |
• | whether the articles of incorporation of the issuer contains any charter of the Chinese Communist Party. |
• | we are unable to combat spam on or inappropriate or abusive use of our platform, which may lead to negative public perception of us and our brand; |
• | technical or other problems prevent us from delivering our services in a rapid and reliable manner or otherwise adversely affect the user experience; |
• | we fail to innovate our communities, user-generated content and our virtual gifts that keep our users interested and eager to return to our platform on a regular basis; |
• | our streamers fail to keep our users engaged on our platform over a long period of time; |
• | we suffer from negative publicity, fail to maintain our brand or our reputation is damaged; |
• | we fail to address user concerns related to privacy and communication, safety, security or other factors; |
• | there are adverse changes in our services that are mandated, or that we elect to make, to address, legislation, regulations or government policies; and |
• | the growth of the number of PC and smartphone users in China stalls. |
• | develop new virtual gifts that are appealing to users; |
• | develop new advertisement formats that are appealing to advertising partners; |
• | maintain stable relationships with game developers and publishers; and |
• | expand to new geographic markets with good eSports environment and high growth potential. |
• | the popularity, usefulness, ease of use, performance and reliability of our services compared to those of our competitors, and our research and development abilities relative to our competitors; |
• | changes mandated, or that we elect to make, to address, legislation, regulations or government policies, some of which may have a disproportionate effect on us; |
• | acquisitions or consolidation within our industry, which may result in more formidable competitors; and |
• | our reputation and brand strength relative to our competitors. |
• | There are uncertainties relating to the regulation of the Internet business in China, including evolving licensing practices. Permits, licenses or operations at some of our subsidiaries and PRC variable interest entity levels may be subject to challenge. We may not be able to timely obtain or maintain all the required licenses or approvals, permits, or to complete filing, registration or other formalities necessary for our present or future operations, and we may not be able to renew certain permits or licenses or renew certain filing or registration or other formalities. See “—If we fail to obtain or maintain the required licenses and approvals or if we fail to comply with laws and regulations applicable to our industry, our business, financial condition and results of operations may be materially and adversely affected” and “Regulation and “Item 4. Information of the Company—4.B. Business Overview—Regulation.” |
• | PRC governmental authorities may impose additional requirements on real-name registration for livestreaming platforms. In August 2018, the National Office of Anti-Pornography and Illegal Publication and five other authorities jointly issued the Notice on Strengthen the Management of Livestreaming Service, which required the real-name registration system for users to be put in place by livestreaming service providers. Pursuant to Notice 78 and the 2021 Streaming Guidance Opinions, online streaming platforms shall implement a real-name registration system. Under the above real-name registration system, we validate the identity information of the registered streamers primarily based on their identification cards and validate the identity information of the registered users primarily based on their mobile numbers. Currently, we are not required to obtain information such as legal names, citizen identification cards or other personal information during the registration process to validate the identity information of our users who are not streamers. However, the PRC government authorities may further tighten the real-name registration requirements or require us to implement a more thorough compulsory real-name registration system such as adopting a mandatory face-recognition system for all users on our platform in the future. If we were required to implement a more rigid real-name registration system for users on our platform, our users’ experiences on the platform may be downgraded and potential users may be deterred from registering with our platform, which may in turn negatively affect the growth of our user base and prospects. |
• | Pursuant to Notice 78 and the 2021 Streaming Guidance Opinions, the online streaming platforms shall adopt a tiered and classified management system over the streamers accounts, with the streamer accounts managed in different tiers and classes based on the nature of the streamers, operational contents, number of fans, popularity of the streaming, time limit of the streaming and other factors. Online streaming platforms shall set up appropriate limitations for streamers’ accounts in different tiers or classes in terms of the total amount of virtual gifts received in any single session of streaming performance, the popularity of the streaming, the time length of the streaming, the sessions of the streaming in any single day, the time gap between different streaming sessions and other factors, and take necessary warning measures against the streamers who violate relevant laws and regulations. In addition, the online streaming platforms are required, among other things, to set up appropriate limitations for the maximum purchase price for each virtual gift and the maximum value of virtual gifts that the users send to the streamers each time. As Notice 78 and the 2021 Streaming Guidance Opinions are relatively new and pending further interpretation and implementation, we are still in the process of waiting for further guidance from regulatory authorities and evaluating the applicability and effect of the various requirements under Notice 78 and the 2021 Streaming Guidance Opinions. Moreover, if the government requires us to supervise the streamers and their streaming sessions in a stricter method, we may incur additional cost and our user experiences may be downgraded, which may further adversely affect our ability to attract viewers and streamers. |
• | The evolving PRC regulatory system for the Internet industry may lead to the establishment of new regulatory agencies. For example, in May 2011, the State Council announced the establishment of a new department, the State Internet Information Office. The primary role of this new agency is to facilitate the policy-making and legislative development in this field to direct and coordinate with the relevant departments in connection with online content administration and to deal with cross-ministry regulatory matters in relation to the Internet industry. We are unable to determine what policies this new agency or any new agencies to be established in the future may have or how they may interpret existing laws, regulations and policies and how they may affect us. On May 14, 2019, the Ministry of Culture and Tourism declared in a circular that it would no longer assume the responsibility of supervising the online games industry and would no longer approve or issue the Online Culture Operating Permits regarding online games. The Online Culture Operating Permits held by Wuhan Ouyue, one of the VIEs, no longer contained content related to online games operation when we renewed it upon expiration in 2020. We believe it is not necessary for an enterprise to obtain Online Culture Operating Permits to operate an online game operation business since the Ministry of Culture and Tourism no longer assumes the responsibility to supervise the operation of online games. As of the date of this annual report, no PRC laws and regulations have been officially promulgated to clarify whether the responsibility of supervising the online games and virtual currency previously taken by the Ministry of Culture and Tourism will be re-designated to another government agency or if so, whether such other government agency taking over the responsibility will require similar or new regulatory requirements for operating online games and virtual currencies. Further, new laws, regulations or policies may be promulgated or announced that will regulate Internet activities, including online video and online advertising businesses. If these new laws, regulations or policies are promulgated, additional licenses may be required for our operations. If our operations do not comply with these new regulations after they become effective, or if we fail to obtain any licenses required under these new laws and regulations, we could be subject to penalties. |
• | In recent years, PRC government has introduced new laws and regulations to reflect its growing concern about the negative impacts of the internet on society, particularly the impacts of internet on minors. On April 15, 2007, eight PRC government authorities, including the General Administration of Press and Publication, or the GAPP, the Ministry of Education, the Ministry of Public Security and the Ministry of Information Industry (which is the predecessor of MIIT), issued a notice requiring all Chinese online game operators to adopt an “anti-fatigue system” in an effort to curb addiction to online games by minors. As of October 1, 2011, online game players in China are required to register and verify their names and identity card numbers with the National Citizen Identity Information Center, a subordinate public institution of the Ministry of Public Security, before playing an online game. On October 25, 2019, the GAPP issued the Circular on Preventing Minors from Indulging in Online Games to reiterate the requirements on real name registration and verification, the anti-indulgence system for minors, and other measures to address relevant minors’ issues on the online games. Pursuant to the 2021 Streaming Guidance Opinions, an online streaming platform shall not be allowed to open the streamer account for users under 16, and shall only open the streamer account for users between 16-18 with their guardians’ prior consents. The 2021 Streaming Guidance Opinions also require all online streaming platforms to adopt a “teenager mode” to prevent the minor users from obsessive use of the platforms, block detrimental content to the minor users, and refrain from providing virtual gift purchase services to the minors. In addition, online streaming platforms shall establish a customer service team exclusively for minor users to address their complaints and disputes in a timely manner. The online streaming platforms shall make refunds in the event that a minor user purchases virtual gifts for the streamers by using an adult account. As of the date of this annual report, we have taken certain measures including displaying a pop-up page to guide the minors to use the “teenage mode”, requiring the users to enter the guardian password if the usage time under the “teenage mode” reaches 40 minutes per day and building up an exclusive content pool for the minors in which contents that are not appropriate for the minors are screened out. Despite the measures we have taken, however, minor users may still use our services through adult accounts if their guardians fail to keep minors under responsible supervision when using our services. On August 30, 2021, the GAPP issued the Circular on Further Strengthening Regulation to Effectively Prevent Online Gaming Addictions among Minors, pursuant to which online game operators are only allowed to provide online game services to minors from 8:00 p.m. to 9:00 p.m. on Fridays, Saturdays, Sundays and public holidays. The restrictions above may lead to a decrease in the number or engagement of game players, which could adversely affect our game livestreaming service and have a material effect on our results of operations. More stringent government regulations could be promulgated in future, which will also adversely affect our results of operations by deterring viewers to use our platform or downgrading our viewers’ experiences on our platform. |
• | challenges in recruiting quality local streamers to attract and engage local users; |
• | challenges in attracting local users by producing content that is appealing to them while in compliance with local rules and regulations; |
• | challenges in monetizing local users and generating sustainable cash flow; |
• | difficulties with staffing and managing foreign operations, which may be exacerbated as a result of distance, time zone, language and cultural differences; |
• | challenges in establishing overseas IT systems and infrastructure; |
• | competitions from other participants in the market, including international leading companies; |
• | currency exchange rate fluctuations; |
• | cultural differences, political or social unrest or economic instability; |
• | difficulties in obtaining licenses, permits or other applicable governmental authorizations, and content control from local authorities; |
• | complexity of intellectual property protection and enforcement regimes overseas and the potential exposure of claims relating to intellectual property infringement; and |
• | increased costs associated with doing business in foreign jurisdictions. |
• | revoking the business licenses and/or operating licenses of such entities; |
• | discontinuing or placing restrictions or onerous conditions on our operation through any transactions between our PRC subsidiaries and the VIEs; |
• | imposing fines, confiscating the income from our PRC subsidiaries or the VIEs, or imposing other requirements with which we or the VIEs may not be able to comply; or |
• | requiring us to restructure our ownership structure or operations, including terminating the contractual arrangements with the VIEs and deregistering the equity pledges of the VIEs, which in turn would affect our ability to consolidate, derive economic interests from, or exert effective control over the VIEs. |
• | variations in our revenues, earnings, cash flow and data related to our user base or user engagement; |
• | announcements of new investments, acquisitions, strategic partnerships or joint ventures by us or our competitors; |
• | announcements of new product and service offerings, solutions and expansions by us or our competitors; |
• | changes in financial estimates by securities analysts; |
• | detrimental adverse publicity about us, our products and services or our industry; |
• | additions or departures of key personnel; |
• | release of lock-up or other transfer restrictions on our outstanding equity securities or sales of additional equity securities; and |
• | potential litigation or regulatory investigations. |
• | we have timely provided the depositary with notice of meeting and related voting materials; |
• | we have instructed the depositary that we wish a discretionary proxy to be given; |
• | we have informed the depositary that there is no substantial opposition as to a matter to be voted on at the meeting; |
• | a matter to be voted on at the meeting would not have a material adverse impact on shareholders; and |
• | the depository has received an opinion of counsel in form and substance satisfactory to the depository. |
• | the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K; |
• | the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; |
• | the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and |
• | the selective disclosure rules by issuers of material nonpublic information under Regulation FD. |
ITEM 4. |
INFORMATION ON THE COMPANY |
• | AI-backed Automatic Detection Process.in-house proprietary monitoring system that takes screenshots of our livestreaming channels every 10 seconds based on our “smart” image detection technology. Our system has machine learning capability and will update our database automatically. |
• | Manual Review. |
• | Self-regulation system by streamers, room managers. |
• | Report by users. |
License |
Entity Holding the License |
Type of the Entity |
Regulatory Authority | |||
License for Value-added Telecommunications Business | Wuhan Douyu | VIE | Communications Administration of Hubei Province | |||
License for Online Culture Business | Wuhan Douyu | VIE | Bureau of Culture and Tourism of Wuhan Municipality | |||
License for Commercial Performance | Wuhan Douyu | VIE | Administration Committee of Wuhan East Lake High-Tech Development Zone | |||
License for Online Transmission of Audio-visual Programs | Wuhan Ouyue | VIE | (former) National Administration for Press, Publication, Radio and Television | |||
License for Production and Operation of Radio and Television Programs | Wuhan Ouyue | VIE | Administration for Radio and Television of Hubei Province | |||
License for Online Culture Business | Wuhan Ouyue | VIE | Bureau of Culture and Tourism of Wuhan Municipality | |||
License for Commercial Performance | Wuhan Ouyue | VIE | Administration Committee of Wuhan East Lake High-Tech Development Zone | |||
License for Value-added Telecommunications Business | Wuhan Ouyue | VIE | Communications Administration of Hubei Province | |||
License for Commercial Performance | Douyu Yule | Wholly Foreign- owned Enterprise |
Department of Culture and Tourism of Hubei Province |
• | 477 trademarks in China, including the logo for douyu.com; |
• | 61 domain names, including douyutv.com, douyu.tv and douyu.com; |
• | 1,899 patents in China, three patents in the United States; and |
• | 96 software copyrights in China, relating to all of our online communities and other products. |
• | production, duplication, import, release or broadcasting of online cultural products; |
• | publishing of online cultural products on the Internet or transmission thereof to computers, fixed-line or mobile phones, radios, television sets or game consoles for the purpose of browsing, reading, reviewing, using or downloading such products by online users; or |
• | exhibitions or contests related to online cultural products. |
(1) | The sole shareholder of Wuhan Ouyue is Mr. Shaojie Chen, our founder, CEO and director. |
(2) | The shareholders of Wuhan Douyu and their relationship with our company are as follows: (i) Mr. Chen (50.23%), our founder, CEO and director; (ii) Linzhi Lichuang (18.98%), an affiliate of Nectarine, one of our shareholders; (iii) Beijing Fengye (13.16%), with 99.99% of its interests owned by Wuhan Ouyue; (iv) Beijing Phoenix (8.08%), an affiliate of Phoenix Fuju Limited, one of our shareholders; (v) Mr. Wenming Zhang (3.92%), our co-founder, former co-CEO and former director, and (vi) Wuhan Chaosai Business Information Consulting Partnership (Limited Partnership) (5.63%), with 99.99% of its interests owned by Wuhan Ouyue. |
• | the ownership structures of the VIEs and Douyu Yule as of the date of this annual report do not and will not contravene any PRC laws or regulations currently in effect; and |
• | each of the agreements under the contractual arrangements among Douyu Yule, the VIEs and their respective shareholders governed by PRC laws is valid and binding upon each party to such agreements and enforceable against each party thereto in accordance with their terms and applicable PRC laws and regulations currently in effect. |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
• | China’s overall economic growth; |
• | the usage and penetration rate of mobile Internet and mobile payment; |
• | the growth and competitive landscape of China’s livestreaming market, especially game-centric livestreaming market; |
• | the growth of China’s online gaming market, especially the e-Sports market; and |
• | governmental policies and initiatives affecting China’s livestreaming industry, including game livestreaming and eSports. |
For the Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in millions) |
||||||||||||||||
Net revenues (1) |
7,283.2 |
9,601.9 |
9,165.3 | 1,438.2 | ||||||||||||
Cost of revenues |
(6,087.0 | ) | (8,041.6 | ) | (8,075.4 | ) | (1,267.2 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
1,196.2 |
1,560.3 |
1,089.9 |
171.0 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing expenses (2) |
(598.7 | ) | (580.4 | ) | (952.9 | ) | (149.5 | ) | ||||||||
Research and development expenses (2) |
(383.9 | ) | (416.3 | ) | (490.0 | ) | (76.9 | ) | ||||||||
General and administrative expenses (2) |
(446.1 | ) | (375.9 | ) | (376.0 | ) | (59.0 | ) | ||||||||
Other operating income, net |
100.8 | 74.4 | 80.3 | 12.6 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
(1,327.9 |
) |
(1,298.2 |
) |
(1,738.6 |
) |
(272.8 |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income from operations |
(131.7 |
) |
262.1 |
(648.7 |
) |
(101.8 |
) | |||||||||
Other expense, net |
(22.8 | ) | (27.4 | ) | (33.8 | ) | (5.3 | ) | ||||||||
Foreign exchange gain, net |
32.0 | — | — | — | ||||||||||||
Interest income |
159.1 | 145.2 | 77.4 | 12.1 | ||||||||||||
Gain on disposal of subsidiary |
— | 23.5 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
36.6 |
403.4 |
(605.1 |
) |
(95.0 |
) | ||||||||||
Income tax expense |
— | — | — | — | ||||||||||||
Share of (loss) income in equity method investments |
(3.3 | ) | 1.3 | (15.1 | ) | (2.4 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
33.3 |
404.7 |
(620.2 |
) |
(97.4 |
) | ||||||||||
Net loss attributable to noncontrolling interest |
(6.5 | ) | (80.8 | ) | (38.4 | ) | (6.0 | ) | ||||||||
Net income (loss) attributable to ordinary shareholders of the Company |
39.8 |
485.5 |
(581.8 |
) |
(91.4 |
) | ||||||||||
Net income (loss) |
33.3 |
404.7 |
(620.2 |
) |
(97.4 |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive loss, net of tax of nil: |
||||||||||||||||
Foreign currency translation adjustments |
109.5 | (425.7 | ) | (123.6 | ) | (19.4 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) |
142.8 |
(21.0 |
) |
(743.8 |
) |
(116.8 |
) | |||||||||
|
|
|
|
|
|
|
|
(1) | We adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” and its amendments on January 1, 2019 with the modified retrospective method, and thus results for reporting periods beginning after January 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 605. |
(2) | Includes share-based compensation of RMB290.8 million, RMB142.1 million and RMB132.1 million (US$20.7 million) in 2019, 2020 and 2021, respectively. |
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
Net revenues |
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
|||||||||||||||||||||
(in millions, except for percentages) |
||||||||||||||||||||||||||||
Livestreaming |
6,617.3 | 90.9 | 8,852.2 | 92.2 | 8,596.6 | 1,349.0 | 93.8 | |||||||||||||||||||||
Advertisement |
513.3 | 7.0 | 645.2 | 6.7 | 464.9 | 72.9 | 5.1 | |||||||||||||||||||||
Other |
152.7 | 2.1 | 104.6 | 1.1 | 103.8 | 16.3 | 1.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
7,283.3 |
100.0 |
9,601.9 |
100.0 |
9,165.3 |
1,438.2 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
Cost of Revenues |
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
|||||||||||||||||||||
(in millions, except for percentages) |
||||||||||||||||||||||||||||
Revenue sharing fees and content cost (1) |
5,176.5 | 85.0 | 7,129.1 | 88.7 | 7,153.2 | 1,122.5 | 88.6 | |||||||||||||||||||||
Bandwidth cost |
617.8 | 10.1 | 661.1 | 8.2 | 665.2 | 104.4 | 8.2 | |||||||||||||||||||||
Other |
292.7 | 4.9 | 251.4 | 3.1 | 257.0 | 40.3 | 3.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
6,087.0 |
100.0 |
8,041.6 |
100.0 |
8,075.4 |
1,267.2 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Include content right costs which are expensed over the streaming periods. |
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
Operating Expenses |
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
|||||||||||||||||||||
(in millions, except for percentages) |
||||||||||||||||||||||||||||
Sales and Marketing expenses |
598.7 | 45.1 | 580.4 | 44.7 | 952.9 | 149.5 | 54.8 | |||||||||||||||||||||
Research and development expenses |
383.9 | 28.9 | 416.3 | 32.1 | 490.0 | 76.9 | 28.2 | |||||||||||||||||||||
General and administrative expenses |
446.1 | 33.6 | 375.9 | 28.9 | 376.0 | 59.0 | 21.6 | |||||||||||||||||||||
Other operating income, net |
(100.8 | ) | (7.6 | ) | (74.4 | ) | (5.7 | ) | (80.3 | ) | (12.6 | ) | (4.6 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
1,327.9 |
100.0 |
1,298.2 |
100.0 |
1,738.6 |
272.8 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in millions, excepts for shares, ADSs, per share and per ADS data) |
||||||||||||||||
Operating income (loss) |
(131.7 | ) | 262.1 | (648.7 | ) | (101.8 | ) | |||||||||
Add: |
||||||||||||||||
Share-based compensation expenses |
290.8 | 142.1 | 132.1 | 20.7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted operating income (loss) |
159.1 |
404.2 |
(516.6 |
) |
(81.1 |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
33.3 |
404.7 |
(620.2 |
) |
(97.3 |
) | ||||||||||
Add: |
||||||||||||||||
Share-based compensation expenses |
290.8 | 142.1 | 132.1 | 20.7 | ||||||||||||
Share of (income) loss in equity method investments |
3.3 | (1.3 | ) | 15.1 | 2.4 | |||||||||||
Gain on disposal of subsidiary |
— | (23.4 | ) | — | — | |||||||||||
Impairment losses and fair value adjustments on investments |
19.0 | 19.5 | 33.7 | 5.3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income (loss) |
346.4 |
541.6 |
(439.3 |
) |
(68.9 |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) attributable to DouYu |
39.8 |
485.5 |
(581.9 |
) |
(91.3 |
) | ||||||||||
Add: |
||||||||||||||||
Share-based compensation expenses |
290.8 | 142.1 | 132.1 | 20.7 | ||||||||||||
Share of income (loss) in equity method investments |
3.3 | (1.3 | ) | 15.1 | 2.4 | |||||||||||
Gain on disposal of subsidiary |
— | (23.4 | ) | — | — | |||||||||||
Impairment losses and fair value adjustments on investments |
19.0 | 19.5 | 33.7 | 5.3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income (loss) attributable to DouYu |
352.9 |
622.4 |
(401.0 |
) |
(62.9 |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income (loss) per ordinary share |
||||||||||||||||
Basic |
17.58 | 19.47 | (12.32 | ) | (1.93 | ) | ||||||||||
Diluted |
11.74 | 19.47 | (12.32 | ) | (1.93 | ) | ||||||||||
Adjusted net income (loss) per ADS |
||||||||||||||||
Basic |
1.76 | 1.95 | (1.23 | ) | (0.19 | ) | ||||||||||
Diluted |
1.17 | 1.95 | (1.23 | ) | (0.19 | ) | ||||||||||
Weighted average number of ordinary shares used in calculating adjusted net income (loss) per ordinary share |
||||||||||||||||
Basic |
19,254,661 | 31,963,526 | 32,544,878 | 32,544,878 | ||||||||||||
Diluted |
31,442,931 | 33,012,682 | 32,544,878 | 32,544,878 | ||||||||||||
Weighted average number of ordinary shares used in calculating adjusted net income (loss) per ADS |
||||||||||||||||
Basic |
192,546,612 | 319,635,264 | 325,448,779 | 325,448,779 | ||||||||||||
Diluted |
314,429,306 | 330,126,823 | 325,448,779 | 325,448,779 |
For the Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in millions) |
||||||||||||||||
Net cash provided by (used in) operating activities |
813.2 | 667.6 | (586.3 | ) | (92.0 | ) | ||||||||||
Net cash used in investing activities |
(246.3 | ) | (2,612.6 | ) | (19.1 | ) | (3.0 | ) | ||||||||
Net cash provided by (used in) financing activities |
1,896.3 | (479.2 | ) | (107.2 | ) | (16.8 | ) | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents |
109.5 | (418.9 | ) | (112.1 | ) | (17.6 | ) | |||||||||
Net increase in cash and cash equivalents |
2,572.7 |
(2,843.1 |
) |
(824.7 |
) |
(129.4 |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents and restricted cash at the beginning of the year |
5,562.2 |
8,134.9 |
5,291.8 |
830.4 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents and restricted cash at the end of the year |
8,134.9 |
5,291.8 |
4,467.1 |
701.0 |
||||||||||||
|
|
|
|
|
|
|
|
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Directors and Executive Officers |
Age |
Position/Title | ||
Shaojie Chen |
38 | Founder, Chief Executive Officer, Director | ||
Chao Cheng |
31 | Chief Operational Officer | ||
Mingming Su |
37 | Chief Strategy Officer, Director | ||
Hao Cao |
42 | Vice President, Director | ||
Yang Deng |
41 | Director | ||
Song Zhou |
43 | Director | ||
Haiyang Yu |
39 | Director | ||
Xi Cao |
37 | Independent Director | ||
Zhaoming Chen |
39 | Independent Director | ||
Xuehai Wang |
47 | Independent Director | ||
Zhi Yan |
49 | Independent Director |
Name |
Ordinary Shares Underlying RSUs |
Exercise Price (US$/Share) |
Date of Grant |
Date of Expiration |
||||||||||||
Shaojie Chen |
1,430,315 | — | April 1, 2018 | — | ||||||||||||
Chao Cheng |
* | — | April 1, 2018 | — | ||||||||||||
Mingming Su |
* | — | April 1, 2018 | — | ||||||||||||
Hao Cao |
* | — | April 1, 2018 | — | ||||||||||||
Yang Deng |
* | — | April 1, 2018 | — | ||||||||||||
Song Zhou |
— | — | — | — | ||||||||||||
Haiyang Yu |
— | — | — | — | ||||||||||||
Xi Cao |
— | — | — | — | ||||||||||||
Zhaoming Chen |
— | — | — | — | ||||||||||||
Xuehai Wang |
— | — | — | — | ||||||||||||
Zhi Yan |
— | — | — | — |
• | selecting the independent registered public accounting firm and pre-approving all auditing and non-auditing services permitted to be performed by the independent registered public accounting firm; |
• | reviewing with the independent registered public accounting firm any audit problems or difficulties and management’s response; |
• | reviewing and approving all proposed related party transactions, as defined in Item 404 of Regulation S-K under the Securities Act; |
• | discussing the annual audited financial statements with management and the independent registered public accounting firm; |
• | reviewing major issues as to the adequacy of our internal controls and any special audit steps adopted in light of material control deficiencies; |
• | annually reviewing and reassessing the adequacy of our audit committee charter; |
• | meeting separately and periodically with management and the independent registered public accounting firm; and |
• | reporting regularly to the board. |
• | reviewing and approving, or recommending to the board for its approval, the compensation for our executive officers; |
• | reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements; and |
• | selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person’s independence from management. |
• | recommending nominees to the board for election or re-election to the board, or for appointment to fill any vacancy on the board pursuant to the terms of the Fourth Amended and Restated Memorandum and Articles of Association, effective upon the completion of our initial public offering in July 2019; |
• | reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience, expertise, diversity and availability of service to us; |
• | developing and recommending to our board such policies and procedures with respect to nomination or appointment of members of our board and chairs and members of its committees or other corporate governance matters as may be required pursuant to any SEC or Nasdaq rules, or otherwise considered desirable and appropriate; |
• | selecting and recommending to the board the names of directors to serve as members of the audit committee and the compensation committee, as well as of the nominating and corporate governance committee itself; |
• | developing and reviewing at least annually the corporate governance principles adopted by the board and advising the board with respect to significant developments in the law and practice of corporate governance and our compliance with such laws and practices; |
• | evaluating the performance and effectiveness of the board as a whole; and |
• | reviewing and approving compensation for our directors. |
Number of Employees |
Percentage |
|||||||
Operation and products |
425 | 19.7 | ||||||
Research and development |
713 | 33.1 | ||||||
Sales and marketing |
220 | 10.2 | ||||||
General and administration |
797 | 37.2 | ||||||
Total |
2,155 | 100.0 |
• | each of our directors and executive officers; |
• | all of our directors and executive officers as a group; and |
• | each of our principal shareholders who beneficially own more than 5% of our total outstanding ordinary shares. |
Ordinary Shares |
||||||||||||
Directors and Executive Officers† |
Number |
Percentage of total ordinary shares |
Percentage of aggregate voting power *** |
|||||||||
Shaojie Chen (1) |
5,362,488 | 16.9 | 16.9 | |||||||||
Chao Cheng |
* | * | * | |||||||||
Mingming Su |
* | * | * | |||||||||
Hao Cao |
* | * | * | |||||||||
Yang Deng |
* | * | * | |||||||||
Song Zhou |
— | — | — | |||||||||
Haiyang Yu |
— | — | — | |||||||||
Xi Cao |
— | — | — | |||||||||
Zhaoming Chen |
— | — | — | |||||||||
Xuehai Wang |
— | — | — | |||||||||
Zhi Yan |
— | — | — | |||||||||
All Directors and Executive Officers as a Group |
5,477,340 | 17.3 | 17.3 | |||||||||
Principal Shareholders: |
||||||||||||
Entities affiliated with Tencent (2) |
12,070,080 | 38.0 | 38.0 | |||||||||
Warrior Ace Holding Limited (3) |
5,283,026 | 16.6 | 16.6 |
* | Less than 1% of our total outstanding shares. |
** | For each person and group included in this column, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group by the sum of (i) 31,748,384, being the number of ordinary shares outstanding as of March 31, 2022 (excluding 259,743 ordinary shares issued to Douyu Employees Limited, our employee shareholding platform established for the RSUs granted under the Amended and Restated 2018 RSU Scheme, which has waived its rights associated with these 259,743 ordinary shares, including voting rights and dividend rights, before the corresponding RSUs vest pursuant to the vesting schedule, and 2,560,562 ordinary shares repurchased in the form of ADSs) and (ii) the number of ordinary shares underlying share options held by such person or group that are exercisable or RSUs that will become vested within 60 days after the date of this annual report. |
*** | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our ordinary shares as a single class. |
† | The address of our directors and executive officers except for Ms. Song Zhou, Mr. Haiyang Yu, Mr. Xi Cao, Mr. Zhaoming Chen, Mr. Xuehai Wang and Mr. Zhi Yan is 20/F, Building A, New Development International Center, No. 473 Guanshan Avenue, Hongshan District, Wuhan, Hubei Province, the People’s Republic of China. The business address for Ms. Zhou is Room 1631, Building C, Kexing Science Park, Kejizhongsan Avenue, Nanshan District, Shenzhen, the People’s Republic of China, the business address for Mr. Yu is 29/F, Three Pacific Place, No. 1 Queen’s Road East, Wanchai, Hong Kong; the business address for Mr. Cao is Room 3606, China Central Place Tower 3, 77 Jianguo Road, Beijing 100025, China; the business address of Mr. Chen is 22/F, Oriental Fisherman’s Wharf, No. 1088 Yangshupu Road, Yangpu District, Shanghai, the People’s Republic of China; the business address for Mr. Wang is No. 666 Gaoxin Avenue, East Lake New Technology Development Zone, Wuhan, the People’s Republic of China; and the business address for Mr. Yan is Special #1, Julong Avenue, Panlong Town Economics Development Zone, Wuhan, the People’s Republic of China. |
(1) | The number of ordinary shares beneficially owned represents (i) 5,283,026 ordinary shares held by Mr. Chen through Warrior Ace Holding Limited, or Warrior Ace; and (ii) 79,462 ordinary shares underlying the RSUs we granted to Mr. Chen under our Amended and Restated 2018 RSU Scheme, which will vest within 60 days after the date of this annual report. Warrior Ace is an exempted company incorporated with limited liability under the laws of the British Virgin Islands, wholly-owned by Mr. Chen. The registered address of Warrior Ace is Sea Meadow House, Blackburne Highway, (P.O. Box 116), Road Town, Tortola, British Virgin Islands. Warrior Ace is beneficially owned and controlled by Mr. Chen. |
(2) | Represents (i) 12,068,104 ordinary shares held by Nectarine, an exempted company incorporated with limited liability under the laws of the British Virgin Islands and a wholly-owned subsidiary of Tencent, and (ii) 1,976 ordinary shares in the form of ADSs held by Distribution Pool Limited, a limited liability incorporated under the laws of the British Virgin Islands and a wholly-owned subsidiary of Tencent. Tencent is a Cayman Islands exempted company listed on the Main Board of the Hong Kong Stock Exchange. The principal business address of Nectarine is Level 29, Three Pacific Place, No. 1 Queen’s Road East, Wanchai, Hong Kong. The registered office of Distribution Pool Limited is Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands. |
(3) | Represents 5,362,488 ordinary shares beneficially owned by Mr. Chen, our chief executive officer and director, as set forth in note (1) above. |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Board Diversity Matrix (As of March 31, 2022) | ||||||||
Country of Principal Executive Offices: | People’s Republic of China | |||||||
Foreign Private Issuer | Yes | |||||||
Disclosure Prohibited Under Home Country Law | No | |||||||
Total Number of Directors | 10 | |||||||
Female |
Male |
Non-Binary |
Did Not Disclose Gender | |||||
Part I: Gender Identity | ||||||||
Directors | 2 | 8 | 0 | 0 | ||||
Part II: Demographic Background | ||||||||
Underrepresented Individual in Home Country Jurisdiction | 0 | |||||||
LGBTQ+ | 0 | |||||||
Did Not Disclose Demographic Background | 0 |
ITEM 8. |
FINANCIAL INFORMATION |
ITEM 9. |
THE OFFER AND LISTING |
ITEM 10. |
ADDITIONAL INFORMATION |
• | the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer; |
• | the instrument of transfer is in respect of only one class of shares; |
• | the instrument of transfer is properly stamped, if required; |
• | in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four; and |
• | a fee of such maximum sum as the Nasdaq may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof. |
• | the designation of the series; |
• | the number of shares of the series; |
• | the dividend rights, dividend rates, conversion rights, voting rights; and |
• | the rights and terms of redemption and liquidation preferences. |
• | does not have to file an annual return of its shareholders with the Registrar of Companies of the Cayman Islands; |
• | is not required to open its register of members for inspection; |
• | does not have to hold an annual general meeting; |
• | may issue bearer shares or shares with no par value; |
• | may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance); |
• | may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands; |
• | may register as a limited duration company; and |
• | may register as a segregated portfolio company. |
• | certain financial institutions; |
• | dealers or traders in securities that use a mark-to-market |
• | persons holding ADSs or ordinary shares as part of a straddle, integrated or similar transaction; |
• | persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; |
• | entities classified as partnerships for U.S. federal income tax purposes and their partners; |
• | tax-exempt entities, “individual retirement accounts” or “Roth IRAs”; |
• | insurance companies; |
• | certain U.S. expatriates; |
• | persons that own or are deemed to own ADSs or ordinary shares representing 10% or more of our voting power or value; |
• | persons who acquired our ADSs or ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation; or |
• | persons holding ADSs or ordinary shares in connection with a trade or business outside the United States. |
• | a citizen or individual resident of the United States; |
• | a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or |
• | an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. |
ITEM 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
• | a fee of U.S.$1.50 per ADR or ADRs for transfers of certificated or direct registration ADRs; |
• | a fee of U.S.$0.05 or less per ADS held for any cash distribution made, or for any elective cash/stock dividend offered, pursuant to the deposit agreement; |
• | an aggregate fee of U.S.$0.05 or less per ADS per calendar year (or portion thereof) for services performed by the depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against holders of ADRs as of the record date or record dates set by the depositary during each calendar year and shall be payable in the manner described in the next succeeding provision); |
• | a fee for the reimbursement of such fees, charges and expenses as are incurred by the depositary and/or any of its agents (including, without limitation, the custodian and expenses incurred on behalf of ADR holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in connection with the servicing of the shares or other deposited securities, the sale of securities (including, without limitation, deposited securities), the delivery of deposited securities or otherwise in connection with the depositary’s or its custodian’s compliance with applicable law, rule or regulation (which fees and charges shall be assessed on a proportionate basis against ADR holders as of the record date or dates set by the depositary and shall be payable at the sole discretion of the depositary by billing such ADR holders or by deducting such charge from one or more cash dividends or other cash distributions); |
• | a fee for the distribution of securities (or the sale of securities in connection with a distribution), such fee being in an amount equal to the $0.05 per ADS issuance fee for the execution and delivery of ADSs which would have been charged as a result of the deposit of such securities (treating all such securities as if they were shares) but which securities or the net cash proceeds from the sale thereof are instead distributed by the depositary to those ADR holders entitled thereto; |
• | stock transfer or other taxes and other governmental charges; |
• | cable, telex and facsimile transmission and delivery charges incurred at your request in connection with the deposit or delivery of shares, ADRs or deposited securities; |
• | transfer or registration fees for the registration of transfer of deposited securities on any applicable register in connection with the deposit or withdrawal of deposited securities; |
• | in connection with the conversion of foreign currency into U.S. dollars, JPMorgan shall deduct out of such foreign currency the fees, expenses and other charges charged by it and/or its agent (which may be a division, branch or affiliate) so appointed in connection with such conversion; and |
• | fees of any division, branch or affiliate of the depositary utilized by the depositary to direct, manage and/or execute any public and/or private sale of securities under the deposit agreement. |
ITEM 13. |
ITEM DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. |
CONTROLS AND PROCEDURES |
ITEM 16.A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16.B. |
CODE OF ETHICS |
ITEM 16.C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Year Ended December 31, |
||||||||||||
Services |
2019 |
2020 |
2021 |
|||||||||
RMB |
RMB |
RMB |
||||||||||
(in thousands) |
||||||||||||
Audit Fees (1) |
6,899 | 8,483 | 8,284 | |||||||||
Audit-Related Fees (2) |
— | 1,958 | 997 | |||||||||
Tax Fees(3) |
89 | 2,175 | 45 | |||||||||
|
|
|
|
|
|
|||||||
Total |
6,988 | 12,616 | 9,326 | |||||||||
|
|
|
|
|
|
(1) | “Audit fees” means the aggregate fees billed for professional services rendered by our principal auditors for the audit of our annual financial statements and the review of our comparative interim financial statements. |
(2) | “Audit-related fees” means the aggregate fees billed for professional services rendered by our principal accounting firm for the assurance and related services, which mainly included the audit and review of financial statements and are not reported under “Audit fees” above. |
(3) | “Tax fees” means the aggregate fees billed for professional services rendered by our principal accounting firm for tax compliance, tax advice and tax planning. |
ITEM 16.D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16.E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Total Number of ADSs Purchased |
Average Price Paid Per ADS (1) |
Total Number of ADSs Purchased as Part of the Publicly Announced Plan |
Approximate Dollar Value of ADSs that May Yet Be Purchased Under the Plan |
|||||||||||||
Period |
||||||||||||||||
August 2021 |
— | — | — | $ | 100,000,000.00 | |||||||||||
September 2021 |
1,183,588.00 | $ | 3.64 | 1,183,588.00 | $ | 95,697,641.62 | ||||||||||
October 2021 |
552,819.00 | $ | 3.44 | 552,819.00 | $ | 93,796,670.71 | ||||||||||
November 2021 |
293,862.00 | $ | 3.41 | 293,862.00 | $ | 92,795,402.45 | ||||||||||
December 2021 |
3,752,775.00 | $ | 2.54 | 3,752,775.00 | $ | 83,262,652.33 | ||||||||||
January 2022 |
2,071,051.00 | $ | 2.41 | 2,071,051.00 | $ | 78,266,149.01 | ||||||||||
February 2022 |
3,287,987.00 | $ | 2.28 | 3,287,987.00 | $ | 70,754,602.49 | ||||||||||
March 2022 |
2,688,544.00 | $ | 1.73 | 2,688,544.00 | $ | 66,104,079.28 | ||||||||||
Total |
13,830,626.00 | $ | 2.45 | 13,830,626.00 | — |
(1) | Every 10 ADSs represent one ordinary share. Average price paid per ADS is calculated using the execution price for each repurchase excluding commissions paid to the broker. |
ITEM 16.F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16.G. |
CORPORATE GOVERNANCE |
ITEM 16.H. |
MINE SAFETY DISCLOSURE |
ITEM 16.I. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
ITEM 19. |
EXHIBITS |
* | Filed herewith |
** | Furnished herewith |
† | Portions of this exhibit have been omitted in reliance of the revised Item 601 of Regulation S-K. |
DouYu International Holdings Limited | ||||
By: | /s/ Shaojie Chen | |||
Name: | Shaojie Chen | |||
Title: | Chief Executive Officer and Director |
Page |
||||
F-2 |
||||
F-5 |
||||
F-6 |
||||
F-7 |
||||
F-8 |
||||
F-10 |
||||
F-40 |
• |
We tested the effectiveness of the internal controls which address risks of material misstatement with respect to management’s assessment of whether or not impairment indicators are present, and if so, the estimated fair value of these investments and conclusions as to whether or not an impairment has occurred. |
• |
We tested management’s evaluation of impairment for these investments accounted equity method investments and equity securities without readily determinable fair value by: |
• |
evaluating the appropriateness of the indicators used by management to determine whether impairment on these investments has occurred, and testing management’s evaluation of whether indicators of impairment existed by considering both quantitative and qualitatively factors. |
• |
testing the appropriateness of the valuation methodology and assumptions used in the fair value calculations of potentially impaired investments including whether the valuation methodology used is an acceptable method to value such investment and whether the assumptions and projections used by management are reasonable and supportable. |
/s/ Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Shanghai, the People’s Republic of China |
April 29, 2022 |
We have served as the Company’s auditor since 2015. |
/s/ |
April 29, 2022 |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ (Note 2.6) |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
||||||||||||
Restricted cash |
||||||||||||
Short-term bank deposits |
||||||||||||
Accounts receivable, net of allowance for credit loss of RMBas of December 31, 2020 and December 31, 2021, respectively |
||||||||||||
Prepayments |
||||||||||||
Amounts due from related parties |
||||||||||||
Other current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Total current assets |
||||||||||||
Property and equipment, net |
||||||||||||
Intangible assets, net |
||||||||||||
Long-term bank deposits |
||||||||||||
Investments |
||||||||||||
Goodwill |
||||||||||||
Right-of-use |
||||||||||||
Other non-current assets |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
||||||||||||
|
|
|
|
|
|
|||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Accounts payable |
||||||||||||
Advances from customers |
||||||||||||
Deferred revenue |
||||||||||||
Accrued expenses and other current liabilities |
||||||||||||
Amounts due to related parties |
||||||||||||
Lease liabilities due within one year |
||||||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
||||||||||||
Lease liabilities |
||||||||||||
Deferred revenue |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
||||||||||||
|
|
|
|
|
|
|||||||
Commitments and contingencies (Note 20) |
||||||||||||
SHAREHOLDERS’ EQUITY |
||||||||||||
Ordinary shares (US$ |
||||||||||||
Treasury shares ( |
( |
) | ( |
) | ( |
) | ||||||
Additional paid-in capital |
||||||||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||
Accumulated other comprehensive income (loss) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total DouYu Shareholder’s Equity |
||||||||||||
Noncontrolling interests |
||||||||||||
|
|
|
|
|
|
|||||||
Total Shareholders’ Equity |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ (Note 2.6) |
|||||||||||||
Net |
||||||||||||||||
Cost of revenues |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
||||||||||||||||
Operating (expense) income: |
||||||||||||||||
Sales and marketing expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Research and development expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other operating income, net |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income from operations |
( |
) | ( |
) | ( |
) | ||||||||||
Other expenses, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Foreign exchange gain, net |
— | — | — | |||||||||||||
Interest income |
||||||||||||||||
Gain on disposal of subsidiary |
— | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes and share of (loss) income in equity method investments |
( |
) |
( |
) | ||||||||||||
Income tax expense |
— | — | — | |||||||||||||
Share of (loss) income in equity method investments |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
( |
) |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss attributable to noncontrolling interest |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) attributable to ordinary shareholders of the Company |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per ordinary share attributable to ordinary shareholders |
||||||||||||||||
Basic |
( |
) | ( |
) | ||||||||||||
Diluted |
( |
) | ( |
) | ||||||||||||
Net income (loss) per ADS* |
||||||||||||||||
Basic |
( |
) | ( |
) | ||||||||||||
Diluted |
( |
) | ( |
) | ||||||||||||
Weighted average shares used in calculating net income (loss) per ordinary share |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
||||||||||||||||
Weighted average number of ADS used in calculating net income (loss) per ADS |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
||||||||||||||||
Net income (loss) |
( |
) |
( |
) | ||||||||||||
Other comprehensive income (loss), net of tax of nil: |
— | — | — | — | ||||||||||||
Foreign currency translation adjustments |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income attributable to noncontrolling interests |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) attributable to the ordinary shareholders |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
Ordinary shares |
Treasury shares |
Additional paid-in capital |
Accumulated deficit |
Accumulated other comprehensive income |
Total shareholders’ equity (deficit) attributable to DouYu |
Noncontrolling interests |
Total shareholders’ equity (deficit) |
|||||||||||||||||||||||||||||||||
Number of shares |
RMB |
Number of shares |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||||
Balance at December 31, 2018 |
— |
— |
( |
) |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||
Issuance of ordinary shares at the initial public offering (“IPO”), net of issuance cost of RMB |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Conversion of preferred shares to ordinary shares upon the completion of the IPO |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||
Noncontrolling interest arising from business acquisition |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Noncontrolling interest arising from a newly established subsidiary |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Repurchase of ordinary shares (Note 11) |
— | — | ( |
) | ( |
) | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Noncontrolling interest arising from vest of nonrestricted shares in Gogo Glocal (Note 14) |
— | — | — | — | ( |
) | — | — | ( |
) | — | |||||||||||||||||||||||||||||
Acquisition of noncontrolling interest in Gogo Glocal (Note 12) |
— | — | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted share units |
— | — | ( |
) | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) |
— | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2019 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of ordinary shares (Note 11) |
— | — | ( |
) | ( |
) | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Acquisitions of noncontrolling interests in Gogo Glocal (Note 12) |
— | — | — | — | — | — | ( |
) | — | |||||||||||||||||||||||||||||||
Acquisitions of noncontrolling interests in Shuangsi (Note 12) |
— | — | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Contribution from shareholder in connection with an acquisition of an equity method investment (Note 7) |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Capital contribution from noncontrolling interest shareholder in DouYu Japan (Note 12) |
— | — | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||||
Net income (loss) |
— | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||
Shared-based compensation |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted share units |
— | — | ( |
) | — | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2020 |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of ordinary shares (Note 11) |
— | — | ( |
) | ( |
) | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Shared-based compensation |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted share units |
— | — | ( |
) | — | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2021 |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ (Note 2.6) |
|||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income (loss) |
( |
) | ( |
) | ||||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||||||||||
Depreciation of property and equipment |
||||||||||||||||
Loss from the disposal of intangible assets |
— | — | ||||||||||||||
Amortization of intangible assets |
||||||||||||||||
Non-cash operating lease expenses |
— | |||||||||||||||
Loss from the disposal of property and equipment |
||||||||||||||||
Provision for allowance for credit loss |
||||||||||||||||
Dividends from an equity investee |
— | — | — | |||||||||||||
Share of loss (income) in equity method investments |
( |
) | ||||||||||||||
Gain on disposal of a subsidiary |
— | ( |
) | — | — | |||||||||||
Impairment losses and fair value adjustments on investments |
||||||||||||||||
Share-based compensation |
||||||||||||||||
Foreign exchange gain |
( |
) | — | — | — | |||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Accounts receivable |
( |
) | ( |
) | ||||||||||||
Prepayments |
( |
) | ( |
) | ( |
) | ||||||||||
Other current assets |
( |
) | ( |
) | ( |
) | ||||||||||
Other non-current assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Amounts due from related parties |
( |
) | ( |
) | ||||||||||||
Accounts payable |
( |
) | ( |
) | ||||||||||||
Advances from customers |
( |
) | ( |
) | ( |
) | ||||||||||
Accrued expenses and other current liabilities |
||||||||||||||||
Amounts due to related parties |
( |
) | ||||||||||||||
Deferred revenue |
( |
) | ( |
) | ||||||||||||
Lease liabilities |
— | ( |
) | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by (used in) operating activities |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flows from investing activities: |
||||||||||||||||
Proceeds on disposal of property and equipment |
( |
) | ||||||||||||||
Purchases of property and equipment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from disposal of intangible assets |
— | — | — | |||||||||||||
Purchases of intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Purchases of short-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Purchases of long-term investments |
— | ( |
) | ( |
) | ( |
) | |||||||||
Proceeds from disposal of short-term investments |
||||||||||||||||
Proceeds from disposal of long-term investments |
— | |||||||||||||||
Proceeds from disposal of equity method investee |
— | — | — | |||||||||||||
Proceeds from disposal of subsidiary, net of cash disposed |
— | — | — | |||||||||||||
Payment for business acquisition, net of cash acquired |
( |
) | — | — | — | |||||||||||
Payments for acquisitions of equity investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Loan to related parties |
( |
) | ( |
) | — | — | ||||||||||
Receipts from loan to related parties |
— | — | — | |||||||||||||
Repayment of loan from related parties |
— | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash used in investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flows from financing activities |
||||||||||||||||
Proceeds on issuance of ordinary shares through IPO |
— | — | — | |||||||||||||
Payment of IPO offering costs |
( |
) | — | — | — | |||||||||||
Acquisition of noncontrolling interest |
( |
) | ( |
) | — | — | ||||||||||
Proceeds from capital contribution from noncontrolling interest shareholder |
— | — | ||||||||||||||
Repurchase of ordinary shares |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Settlement |
( |
) | — | — | — | |||||||||||
Repayment of advances from related party |
( |
) | — | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash provided by (used in) financing activities |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Effect of foreign exchange rate changes on cash and cash equivalents |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
( |
) | ( |
) | ( |
) | ||||||||||
Cash, cash equivalent and restricted cash at the beginning of the year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalent and restricted cash at the end of the year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Supplemental disclosure on non-cash investing and financing activities: |
||||||||||||||||
Accured purchases of property and equipment |
||||||||||||||||
Payable for repurchase of ordinary shares not yet paid |
— | — | — |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Cash and cash equivalents |
||||||||||||
Restricted cash |
||||||||||||
|
|
|
|
|
|
|||||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows |
||||||||||||
|
|
|
|
|
|
1. |
Organization and principal activities |
Date of incorporation/ establishment |
Place of incorporation/ establishment |
Percentage of direct/indirect ownership |
||||||||||
Wholly owned subsidiaries |
||||||||||||
Wuhan Douyu Education Consulting Co., Ltd. |
% | |||||||||||
Wuhan Yuwan Culture Media Co., Ltd. |
% | |||||||||||
Wuhan Yuxing Tianxia Culture Media Co., Ltd. |
% | |||||||||||
Wuhan Yuyin Raoliang Culture Media Co., Ltd. |
% | |||||||||||
Wuhan Yu Leyou Internet Technology Co., Ltd. |
% | |||||||||||
Wuhan Douyu Culture Network Technology Co., Ltd. (“ Douyu Yule”) |
% | |||||||||||
The British | ||||||||||||
DouYu Network Inc. |
% | |||||||||||
Douyu Hongkong Limited |
% | |||||||||||
Gogo Glocal Holding Limited |
% | |||||||||||
VIEs |
||||||||||||
Wuhan Ouyue Online TV Co., Ltd. (“Wuhan Ouyue”) |
% | |||||||||||
Wuhan Douyu Network Technology Co., Ltd. |
% |
2. |
Summary of significant accounting policies |
2.1 |
Basis of Presentation |
2.2 |
Basis of Consolidation |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
ASSETS |
||||||||
Cash and cash equivalents |
||||||||
Restricted cash |
||||||||
Short-term bank deposits |
||||||||
Accounts receivable, net |
||||||||
Prepayments |
||||||||
Amounts due from related parties |
||||||||
Other current assets |
||||||||
Property and equipment, net |
||||||||
Long-term bank deposits |
||||||||
Intangible assets, net |
||||||||
Right-of-use |
||||||||
Investments |
||||||||
Other non-current assets |
||||||||
Total Assets |
||||||||
LIABILITIES |
||||||||
Accounts payable |
||||||||
Advances from customers |
||||||||
Deferred revenue |
||||||||
Accrued expenses and other current liabilities |
||||||||
Amounts due to related parties |
||||||||
Lease liabilities |
||||||||
Total Liabilities |
||||||||
2. |
Summary of significant accounting policies (Continued) |
2.2 |
Basis of Consolidation (Continued) |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net revenue |
||||||||||||
Net income |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net cash provided by (used in) operating activities |
( |
) | ||||||||||
Net cash used in investing activities |
( |
) |
( |
) |
||||||||
Net cash used in financing activities |
( |
) |
2.3 |
Use of Estimates |
2.4 |
Fair value measurements |
Level 1 — | Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. | |||
2. |
Summary of significant accounting policies (Continued) |
2.4 |
Fair value measurements (Continued) |
Level 2 — |
Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. | |||
Level 3 — |
Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
2.5 |
Foreign currency translation |
2.6 |
Convenience Translation into United States Dollars |
2.7 |
Cash and cash equivalents |
2. |
Summary of significant accounting policies (Continued) |
2.8 |
Restricted cash |
2.9 |
Short-term and long-term bank deposits |
2.10 |
Accounts receivable, net of allowance for credit loss |
2.11 |
Property and equipment, net |
Computer and transmission equipment |
| |
Leasehold improvements |
| |
Furniture and office equipment |
| |
Motor vehicles |
2.12 |
Intangible assets, net |
Brand name |
||
Agency contract rights |
||
License for Online Transmission of Audio/Video Programs |
||
Platform |
||
Software |
||
Licensed copyrights of content |
||
Others |
2. |
Summary of significant accounting policies (Continued) |
2.13 |
Goodwill |
2.14 |
Impairment of long-lived assets and intangible assets |
2.15 |
Long-term investments |
2. |
Summary of significant accounting policies (Continued) |
2.15 |
Long-term investments (Continued) |
2.16 |
Revenue recognition |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Live streaming |
||||||||||||
Advertisement |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
2. |
Summary of significant accounting policies (Continued) |
2.16 |
Revenue recognition (Continued) |
2. |
Summary of significant accounting policies (Continued) |
2.16 |
Revenue recognition (Continued) |
Accounts receivable |
Advances from customers |
Deferred revenue |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Opening Balance as of January 1, 2020 |
||||||||||||
Increase (decrease), net |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Ending Balance as of December 31, 2020 |
||||||||||||
Decrease, net |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Ending Balance as of December 31, 2021 |
||||||||||||
|
|
|
|
|
|
2.17 |
Cost of revenues |
2.18 |
Research and development expenses |
2.19 |
Sales and marketing expenses |
2.20 |
General and administrative expenses |
2. |
Summary of significant accounting policies (Continued) |
2.21 |
Income taxes |
2.22 |
Segment information |
2.23 |
Operating leases as lessee |
2. |
Summary of significant accounting policies (Continued) |
2.24 |
Government subsidies |
2.25 |
Certain risks and concentrations |
Years ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
% |
|||||||||||||||||||
Company A |
— |
— |
% |
% |
2.26 |
Recently issued accounting pronouncements |
3. |
Accounts receivable, net |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Accounts receivable, gross |
||||||||
Less: allowance for credit loss |
( |
) | ( |
) | ||||
Accounts receivable, net |
||||||||
As of December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance as of January 1 |
||||||||||||
Addition |
||||||||||||
Write offs |
( |
) | ( |
) | ( |
) | ||||||
Balance as of December 31 |
||||||||||||
As of December 31, |
||||||||||||||||||||||||
2020 |
2021 |
|||||||||||||||||||||||
RMB |
% |
RMB |
% |
US$ |
% |
|||||||||||||||||||
Company A |
— | — | % | % | ||||||||||||||||||||
Company B |
% | % | % |
4. |
Other current assets |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Value-added tax recoverable | ||||||||
Funds receivable from third party payment service providers (1) |
||||||||
Interest receivable |
||||||||
Content rights |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
(1) | The Group opened accounts with external online payment service providers to collect funding from users. |
5. |
Property and equipment, net |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Gross carrying amount |
||||||||
Computer and transmission equipment |
||||||||
Leasehold improvements |
||||||||
Furniture and office equipment |
||||||||
Motor vehicles |
||||||||
|
|
|
|
|||||
Total |
||||||||
Less: accumulated depreciation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Property and equipment, net |
||||||||
|
|
|
|
6. |
Intangible assets, net |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Gross carrying amount |
||||||||
Brand name |
||||||||
Agency contract rights(1) |
||||||||
License for Online Transmission of Audio/Video Programs(2) |
||||||||
Platform |
||||||||
Software |
||||||||
Licensed copyrights of content |
||||||||
Others |
||||||||
|
|
|
|
|||||
Total of gross carrying amount |
||||||||
Less: accumulated amortization |
||||||||
Brand name |
( |
) | ( |
) | ||||
Agency contract rights |
( |
) | ( |
) | ||||
Platform |
( |
) | ( |
) | ||||
Software |
( |
) | ( |
) | ||||
Licensed copyrights of content |
( |
) | ( |
) | ||||
Others |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total of accumulated amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Intangible assets, net |
||||||||
|
|
|
|
6. |
Intangible assets, net (Continued) |
(1) | The agency contract rights, which represent upfront payments of cooperation cost to top streamers, acquired during the years ended December 31, 2020 and 2021 are RMB |
(2) | In February 2016, Wuhan Douyu obtained effective control of Wuhan Ouyue, a PRC legal entity from Mr. Shaojie Chen, the Group’s CEO through a series of contractual arrangements. Wuhan Ouyue has no business and holds one asset, License for Online Transmission of Audio/Video Programs. The transaction was deemed as an asset acquisition under ASC 805 and the License for Online Transmission of Audio/Video Programs was recognized based on the consideration paid, which approximate the market value of the asset acquired. The license permits the Group in the provision of online streaming of video on its platforms. The license is renewable every 3 years and may be renewed indefinitely. The Group has renewed this license in March 2021 which remains valid until March 2024, and intends to renew the license indefinitely. |
Future amortization expenses |
||||
RMB |
||||
2022 | ||||
2023 | ||||
2024 | ||||
2025 | ||||
2026 and thereafter |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
Brand name |
||||||||
Agency contract rights |
||||||||
Platform |
||||||||
Software |
||||||||
Others |
7. |
Investments |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Wuhan Shayu Network Technology Co., Ltd. (“Shayu”) (1) |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
7. |
Investments (Continued) |
(1) |
In 2016, the Group invested RMB |
• |
The Group acquired |
• |
The Company injected cash of RMB |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Content producers |
||||||||
Technology and software companies |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
8. |
Accrued expenses and other current liabilities |
As of December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Accrued payroll and welfare |
|
|
|
|
|
| ||
Accrued marketing cost |
|
|
|
|
|
| ||
Accrued settlement relating to class action lawsuits |
|
|
— | |
|
|
| |
Other tax payable |
|
|
|
|
|
| ||
Deposits |
|
|
|
|
|
| ||
Others |
|
|
|
|
|
| ||
Total |
|
|
|
|
|
|
|
9. |
Cost of revenues |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Revenue sharing fees and content costs |
||||||||||||
Bandwidth costs |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
10. |
Income taxes |
10. |
Income taxes (Continued) |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
PRC |
( |
) | ||||||||||
Foreign |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total |
( |
) | ||||||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
PRC income tax rate |
% | % | % | |||||||||
Expenses not deductible for tax purposes |
% | % | ( |
%) | ||||||||
Super deduction on research and development expenses |
( |
)% | ( |
)% | % | |||||||
Effect of expired tax loss |
( |
%) | ||||||||||
Effect of change in income tax rate |
( |
)% | — | |||||||||
Effect of tax holiday |
( |
%) | % | |||||||||
Effect of tax rate in different tax jurisdiction |
% | % | ( |
%) | ||||||||
Change in valuation allowance |
% | ( |
)% | ( |
%) | |||||||
|
|
|
|
|
|
|||||||
Total |
% | % | % | |||||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
The aggregate dollar effect |
||||||||||||
Per share effect—basic and diluted |
Years ended December 31, |
||||||||
2020 |
2021 |
|||||||
RMB |
RMB |
|||||||
Deferred tax assets |
||||||||
Tax loss carried forward |
||||||||
Deductible temporary differences |
||||||||
Tax basis difference upon the restructuring in 2016 |
||||||||
Allowance for credit loss |
||||||||
|
|
|
|
|||||
Total deferred tax assets |
||||||||
Less: valuation allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net deferred tax assets |
||||||||
|
|
|
|
10. |
Income taxes (Continued) |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance at beginning of the year |
||||||||||||
Increase |
||||||||||||
Decrease |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance at end of the year |
||||||||||||
|
|
|
|
|
|
11. |
Ordinary shares |
11. |
Ordinary shares (Continued) |
12. |
Noncontrolling Interest |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Net income (loss) attributable to DouYu’s ordinary shareholders |
( |
) | ||||||||||
Transfers to noncontrolling interest |
||||||||||||
Decrease in DouYu’s additional paid-in capital for acquisition of noncontrolling interest in Shuangsi (1) |
— | ( |
) | — | ||||||||
Decrease in DouYu’s additional paid-in capital due to capital contribution from noncontrolling interest shareholder in DouYu Japan (2) |
— | ( |
) | — | ||||||||
Increase in DouYu’s additional paid-in capital due to repurchase of noncontrolling interest in Gogo Glocal (Note 14) |
— | — | ||||||||||
Decrease in DouYu’s additional paid-in capital due to vest of Gogo Glocal’s noncontrolling interest restricted shares (Note 14) |
( |
) | — | — | ||||||||
Decrease in DouYu’s additional paid-in capital for acquisition of shares of Gogo Glocal’s noncontrolling interest |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net transfers to noncontrolling interest |
( |
) | — | |||||||||
|
|
|
|
|
|
|||||||
Change from net income attribute to DouYu and transfers to noncontrolling interest |
( |
) | ||||||||||
|
|
|
|
|
|
(1) | In March 2020, the Group purchased paid-in capital. |
(2) | In April, June and November, 2020, the Group and noncontrolling interest shareholder purchased the newly issued common shares of DouYu Japan with consideration of JPY paid-in capital. |
13. |
Convertible redeemable preferred shares |
13. |
Convertible redeemable preferred shares (Continued) |
Series A |
Series B-1 |
Series B-2 |
Series B-3 |
Series B-4(1) |
Series C-1 |
Series C-2(2) |
Series D |
Series E(3) |
||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
||||||||||||||||||||||||||||
December 31, 2017 |
— | — | ||||||||||||||||||||||||||||||||||
Issuance |
— | — | — | — | — | ( |
) | — | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
December 31, 2018 |
— | |||||||||||||||||||||||||||||||||||
Conversion into ordinary shares upon IPO |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
December 31, 2019 |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | In May 2018, the Company repurchased B-4 Preferred Shares to the same investor with no cash consideration. The difference between the fair value of ordinary shares repurchased and that of the Series B-4 Preferred Shares issued is immaterial. |
(2) | In January 2018, Wuhan Douyu repurchased Series C-2 Preferred Equity from its investor at fair value for a cash consideration of RMBC-2 Preferred Equity at the date of repurchase was recorded in additional paid-in capital. |
(3) | On May 29, 2018, the Company issued per-share purchase price of US$ |
14. |
Share-based compensation |
14. |
Share-based compensation (Continued) |
(1) | In February 2020, the Group repurchased |
(2) | In February 2020, the Group canceled was immediately recognized in the consolidated statement of comprehensive income for the year ended December 31, 2020. |
Number of restricted shares |
Weighted average grant-date fair value |
Weighted average remaining contractual life |
||||||||||
RMB |
Years |
|||||||||||
Outstanding as of December 31, 2020 |
||||||||||||
Vested |
( |
) | ||||||||||
Forfeited |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Outstanding as of December 31, 2021 |
||||||||||||
|
|
|
|
|
|
15. |
Net income (loss) per share and net income (loss) attributable to ordinary shareholders |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Basic net income (loss) per share calculation Numerator: |
||||||||||||
Net income (loss) attributable to DouYu Holdings Limited shareholders |
( |
) | ||||||||||
Amounts allocated to convertible redeemable preferred shares for participating rights to dividends |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net income (loss) attributable to ordinary shareholders for computing basic net income (loss) per share |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Denominator: |
||||||||||||
Weighted average number of ordinary shares used in computing basic income (loss) per ordinary share |
||||||||||||
|
|
|
|
|
|
|||||||
Basic net income (loss) per ordinary share |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Diluted net income (loss) per share calculation Numerator: |
||||||||||||
Net income (loss) attributable to ordinary shareholders of DouYu Holdings Limited |
( |
) | ||||||||||
Add: undistributed earnings allocated to participating securities |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Net income (loss) attributable to ordinary shareholders for computing diluted net income (loss) per ordinary share |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Denominator: |
||||||||||||
Weighted average number of ordinary shares used in computing basic income (loss) per ordinary share |
||||||||||||
Add: conversion of convertible redeemable preferred shares into ordinary shares |
— | — | ||||||||||
Restricted Share Units |
— | |||||||||||
|
|
|
|
|
|
|||||||
Weighted average ordinary shares used in computing diluted income (loss) per ordinary share |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted net income (loss) per ordinary share |
( |
) | ||||||||||
|
|
|
|
|
|
15. |
Net income (loss) per share and net income(loss) attributable to ordinary shareholders (Continued) |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Restricted share units |
16. |
Statutory reserves and restricted net assets |
17. |
Segment Information |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Live streaming |
||||||||||||
Advertisement |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
18. |
Related party transactions |
Company Name |
Relationship with the Group | |
Tencent Holdings Limited (“Tencent Group”) |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Live streaming revenue derived from |
||||||||||||
Equity method investees- talent agencies |
— | |||||||||||
|
|
|
|
|
|
|||||||
Advertisement revenue derived from |
||||||||||||
Tencent Group |
||||||||||||
|
|
|
|
|
|
|||||||
Other revenue derived from |
||||||||||||
Tencent Group |
||||||||||||
Equity method investees- talent agencies |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Bandwidth fees paid to |
||||||||||||
Tencent Group |
||||||||||||
|
|
|
|
|
|
|||||||
Revenue sharing fees and content cost paid to |
||||||||||||
Tencent Group |
||||||||||||
Equity method investees- talent agencies |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Payment handling fees paid to |
||||||||||||
Tencent Group |
||||||||||||
|
|
|
|
|
|
|||||||
Content rights purchased from |
||||||||||||
Tencent Group |
||||||||||||
|
|
|
|
|
|
18. |
Related party transactions (Continued) |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Amounts due from related parties |
||||||||||||
Tencent Group |
||||||||||||
Equity method investees- talent agencies |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Amounts due to related parties |
||||||||||||
Tencent Group |
||||||||||||
Equity method investees- talent agencies |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
19. |
Leases |
Year ended December 31, 2020 |
Year ended December 31, 2021 |
|||||||
RMB |
RMB |
|||||||
Operating lease expense |
||||||||
Short-term lease expense |
||||||||
|
|
|
|
|||||
Total lease expense |
||||||||
|
|
|
|
19. |
Leases (Continued) |
As of December 31, 2020 |
As of December 31, 2021 |
|||||||
Operating lease: |
RMB |
RMB |
||||||
Operating leases right-of-use |
||||||||
Current portion of lease liabilities |
||||||||
Non-current portion of lease liabilities |
||||||||
Total operating lease liabilities |
||||||||
Weighted-average remaining lease term (in years) – operating leases |
||||||||
Weighted-average discount rate – operating leases |
% | % |
For the year ended December 31,2020 |
For the year ended December 31,2021 |
|||||||
RMB |
RMB |
|||||||
Cash paid for operating leases |
||||||||
Lease liabilities arising from obtaining right-of-use |
Years ending |
RMB |
|||
2022 |
||||
2023 |
||||
2024 |
||||
2025 and thereafter |
||||
|
|
|||
Total undiscounted cash flows |
||||
Less: imputed interest |
||||
|
|
|||
Total |
||||
|
|
|||
Lease liabilities due within one year |
||||
Lease liabilities due after one year |
20. |
Commitments and contingencies |
21. |
Subsequent events |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
||||||||||||
Short-term deposits |
||||||||||||
Prepayments |
||||||||||||
Other current assets |
||||||||||||
Amount s due from subsidiaries and VIEs |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total current assets |
||||||||||||
Other non-current assets |
— | — | — | |||||||||
Investments in subsidiaries and VIEs |
||||||||||||
|
|
|
|
|
|
|||||||
Total assets |
||||||||||||
|
|
|
|
|
|
|||||||
LIABILITIES |
||||||||||||
Current liabilities: |
||||||||||||
Accrued expenses and other current liabilities |
||||||||||||
Amount s due to subsidiaries and VIEs |
||||||||||||
Deferred revenue |
||||||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
||||||||||||
Non-current liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Shareholders’ equity (deficit) |
||||||||||||
Ordinary shares |
||||||||||||
Treasury share |
( |
) | ( |
) | ( |
) | ||||||
Additional paid-in capital |
||||||||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||
Accumulated other comprehensive income |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Research and development expenses |
— | ( |
) | ( |
) | ( |
) | |||||||||
Other operating income (expense), net |
( |
) | ( |
) | ||||||||||||
Interest income |
||||||||||||||||
Equity (deficit) in equity of subsidiaries and VIE |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss): |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Foreign currency translation adjustment |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
Years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||||||
Net income (loss) |
( |
) | ( |
) | ||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||||||||||
Loss from equity in earnings of subsidiaries and VIEs |
( |
) | ||||||||||||||
Share-based compensation |
||||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Prepayments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other current assets |
||||||||||||||||
Amount s due from subsidiaries and VIEs |
( |
) | ||||||||||||||
Accrued expenses and other current liabilities |
( |
) | ||||||||||||||
Other liabilities |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
( |
) | ( |
) | ||||||||||||
Proceeds from disposal of short-term investments |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Purchases of short-term investments |
— | ( |
) | ( |
) | ( |
) | |||||||||
Investment in subsidiaries |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
CASH USED IN INVESTING ACTIVITIES |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds on issuance of ordinary shares through IPO |
— | — | — | |||||||||||||
Payment of deferred offering costs |
( |
) | — | — | — | |||||||||||
Repurchase of ordinary shares |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Effect of foreign exchange rate changes |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
( |
) | ( |
) | ( |
) | ||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
CASH AND CASH EQUIVALENTS AT YEAR END |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Supplemental disclosure on non-cash investing and financing activities: |
||||||||||||||||
Payable for repurchase of ordinary shares not yet paid |
— | — | — |