YY Inc. (NASDAQ: YY) (“YY” or the “Company”), a global social media
platform, today announced its unaudited financial results for the
second quarter of 2019.
Second Quarter 2019 Financial
Highlights
- Net revenues
increased by 66.8% to RMB6,295.2 million (US$917.0 million) from
RMB3,773.2 million in the corresponding period of 2018.
- Net income attributable to
controlling interest of YY
Inc.1 was RMB42.1 million (US$6.1 million),
compared to net loss attributable to controlling interest of YY
Inc. of RMB99.9 million in the corresponding period of 2018.
- Non-GAAP net income
attributable to controlling interest of YY Inc.2 was
RMB424.2 million (US$61.8 million), compared to RMB910.2 million in
the corresponding period of 2018, primarily due to the impact of
the consolidation of Bigo Inc (“Bigo”).
Second Quarter 2019 Operational
Highlights
- Global average mobile
MAUs3 reached 433.5 million, among which about 78.1% were
from markets outside China.
- Average mobile MAUs of
IMO reached 211.9 million.
- Average mobile MAUs of
global short-form video services increased by 431.2% to
90.3 million from 17.0 million in the corresponding period of 2018,
including 80.7 million from Likee (formerly known as Like), which
increased by 374.7% year-over-year, and 9.6 million from IMO’s
embedded short-form video services.
- Average mobile MAUs of
global live streaming services increased by 39.2% to 140.9
million from 101.2 million in the corresponding period of 2018,
among that (i) 94.8 million were from China, including 38.9 million
from YY, which increased by 3.7% year-over-year and 55.9 million
from Huya, which increased by 31.1% year-over-year; (ii) 46.1
million were from outside China, including 20.8 million from Bigo
Live, which increased by 6.6% year-over-year; and 25.3 million from
Hago.
- Total number of paying
users4 of YY increased by 19.1% to 4.2
million from 3.5 million in the corresponding period of 2018.
- Total number of paying
users of Huya increased by 46.7% to 4.9 million from 3.4
million in the corresponding period of 2018.
Mr. David Xueling Li, Chairman and Chief
Executive Officer of YY, commented, “After we successfully
completed the acquisition of BIGO in March, the second quarter was
the first time we had the full quarter consolidation of the
financial performance of BIGO. In the second quarter, our global
average mobile MAUs reached 433.5 million, of which the average
mobile MAUs of global short-form video services increased by 431.2%
year-over-year to 90.3 million, and the average mobile MAUs of
global live streaming services increased by 39.2% year-on-year to
140.9 million. More importantly, average mobile MAUs of our instant
messaging platform IMO had reached nearly 211.9 million. Our
massive and diverse user base offers us a great opportunity for the
synergy and future monetization. During the second quarter, we
further enhanced the stickiness of IMO users by introducing
short-form video content into IMO. About 17.5 million monthly users
in more than 40 countries were able to access to the short-form
video content on IMO. We were pleased to see that the conversion
rate to short-form video users had reached to over 50%. In
addition, we also continued to bolster the foundation of our global
ecosystem by enhancing our AI technologies and cultivating our
localization capabilities. Going forward, as we continue to refine
the synergies between our business segments and launch new
monetization venues on a global scale, we are confident of
achieving our vision of connecting people and enriching their lives
through video.”
Mr. Bing Jin, Chief Financial Officer of YY,
further commented, “We once again achieved strong financial and
operating performances in the second quarter of 2019, highlighted
by rapid growth and sustained profitability. Our total net revenues
in the second quarter of 2019 increased by 66.8% year over year to
RMB6,295.2 million, exceeding the high end of our previous guidance
range. The increase in net revenues was primarily driven by a 66.4%
year-over-year increase in live streaming revenues to RMB5,922.8
million. The consolidation of Bigo fueled additional user and
revenue growth. Looking ahead, we will continue to enhance content
offerings and develop AI technologies across our products on a
global scale, and we are confident that our instant messaging and
short-form video businesses will become the next dual growth
engines for the group and further drive our global expansion.”
Second Quarter 2019 Financial Results
NET REVENUES Net revenues
increased by 66.8% to RMB6,295.2 million (US$917.0 million) in the
second quarter of 2019 from RMB3,773.2 million in the corresponding
period of 2018, primarily driven by an increase in live streaming
revenues, and the contribution from the consolidation of Bigo
segment.
Live streaming revenues increased by 66.4% to
RMB5,922.8 million (US$862.7 million) in the second quarter of 2019
from RMB3,559.7 million in the corresponding period of 2018,
primarily attributable to (i) the continued live streaming revenues
growth in YY and Huya segments, amounting to RMB1,224.9 million
(US$178.4 million), driven by user growth; and (ii) the
contribution from the consolidation of Bigo segment, amounting to
RMB1,138.2 million (US$165.8 million).
Other revenues increased by 74.4% to RMB372.5
million (US$54.3 million) in the second quarter of 2019 from
RMB213.6 million in the corresponding period of 2018, primarily
driven by the increase in advertising revenues from Huya and Bigo
segments.
COST OF REVENUES AND GROSS
PROFIT Cost of revenues increased by 80.4% to RMB4,173.8
million (US$608.0 million) in the second quarter of 2019 from
RMB2,313.8 million in the corresponding period of 2018, mainly
attributable to an increase in revenue-sharing fees and content
costs to RMB3,149.3 million (US$458.7 million) in the second
quarter of 2019 from RMB1,882.6 million in the corresponding period
of 2018, which was in line with the increase in live streaming
revenues of the Company. Bandwidth costs increased to RMB423.8
million (US$61.7 million) in the second quarter of 2019 from
RMB246.0 million in the corresponding period of 2018, primarily
reflecting continued overseas user base expansion mainly due to the
impact of the consolidation of Bigo.
Gross profit increased by 45.4% to RMB2,121.4
million (US$309.0 million) in the second quarter of 2019 from
RMB1,459.5 million in the corresponding period of 2018. Gross
margin was 33.7% in the second quarter of 2019, compared to 38.7%
in the corresponding period of 2018, primarily due to the impact
caused by the relatively low gross margin of Huya and Bigo segments
as their contributions to net revenues increased significantly year
over year. The decrease in gross margin was also attributable to
the increase in revenue-sharing fees and content costs.
OPERATING INCOMEOperating
expenses were RMB2,090.9 million (US$304.6 million) in the second
quarter of 2019, compared to RMB779.6 million in the corresponding
period of 2018, primarily due to the increase in sales and
marketing expenses of RMB853.4 million (US$124.3 million), and
research and development expenses of RMB359.5 million (US$52.4
million). The increase in sales and marketing expenses was
primarily attributable to the Company’s increased efforts in sales
and marketing activities in overseas markets and the impact of
depreciation and amortization related to the consolidation of Bigo,
while the increase in research and development expenses was due to
the increase in staff related expenses.
Operating income was RMB71.9 million (US$10.5
million) in the second quarter of 2019, compared to RMB713.8
million in the corresponding period of 2018. Operating margin was
1.1% in the second quarter of 2019, compared to 18.9% in the
corresponding period of 2018, primarily due to the decrease in
gross margin, the consolidation of Bigo and other overseas
expansion initiatives.
Non-GAAP operating income5 was RMB524.9 million
(US$76.5 million) in the second quarter of 2019, compared to
RMB933.1 million in the corresponding period of 2018. Non-GAAP
operating margin6 was 8.3% in the second quarter of 2019, compared
to 24.7% in the corresponding period of 2018.
NET INCOMENet income
attributable to controlling interest of YY Inc. was RMB42.1 million
(US$6.1 million) in the second quarter of 2019, compared to net
loss attributable to controlling interest of YY Inc. of RMB99.9
million in the corresponding period of 2018. Net margin was 0.7% in
the second quarter of 2019, compared to negative 2.6% in the
corresponding period of 2018. The significantly high effective tax
rate in the second quarter of 2019 was primarily due to the profit
(loss) structure and the different effective tax rates of YY, Huya
and Bigo segments. Particularly, the Company was not getting as
much benefit from losses incurred by Bigo as a majority of Bigo’s
business that was subject to a low applicable tax rate in its
jurisdiction.
Non-GAAP net income attributable to controlling
interest of YY Inc. was RMB424.2 million (US$61.8 million) in the
second quarter of 2019, compared to RMB910.2 million in the
corresponding period of 2018. Non-GAAP net margin7 was 6.7% in the
second quarter of 2019, compared to 24.1% in the corresponding
period of 2018.
NET INCOME PER ADSDiluted net
income per ADS8 was RMB0.27 (US$0.04) in the second quarter of
2019, compared to diluted net loss per ADS of RMB2.14 in the
corresponding period of 2018.
Non-GAAP diluted net income per ADS9 was RMB5.14
(US$0.75) in the second quarter of 2019, compared to RMB13.75 in
the corresponding period of 2018.
BALANCE SHEET AND CASH FLOWSAs
of June 30, 2019, the Company had cash and cash equivalents,
restricted cash and cash equivalents, restricted short-term
deposits, short-term deposits and short-term investments of
RMB25,106.5 million (US$3,657.2 million), which also included the
proceeds received from the issuance of convertible senior notes and
follow-on public offering of Huya in the second quarter of 2019.
For the second quarter of 2019, net cash from operating activities
was RMB1,125.4 million (US$163.9 million).
SHARES OUTSTANDING As of June
30, 2019, the Company had a total of 1,617.1 million common shares,
or the equivalent of 80.9 million ADSs, outstanding.
Business OutlookFor the third
quarter of 2019, the Company expects net revenues to be between
RMB6.57 billion and RMB6.77 billion10, representing a
year-over-year growth of 60.2% to 65.1%. This forecast reflects the
Company’s current and preliminary views on the market and
operational conditions, which are subject to change.
Recent DevelopmentsThe Company
today announced that its board of directors has authorized a share
repurchase plan under which the Company may repurchase up to US$300
million of its shares over the next 12 months. The share
repurchases may be made from time to time in the open market at
prevailing market prices, in privately negotiated transactions, in
block trades and/or through other legally permissible means,
depending on market conditions and in accordance with applicable
rules and regulations. YY’s board of directors will review the
share repurchase plan periodically, and may authorize adjustment of
its terms and size. The Company expects to fund repurchases made
under this plan from its existing funds.
Conference Call InformationThe
Company will hold a conference call on Tuesday, August 13, 2019, at
9:00 P.M. Eastern Time (or Wednesday, August 14, 2019, at 9:00
A.M. Beijing Time) to discuss the financial results.
Participants may access the call by dialing the following
numbers:
United States:
+1-845-675-0437International:
+65-6713-5090China Domestic:
400-620-8038Hong Kong:
+852-3018-6771Conference
ID: #6472108
The replay will be accessible through August 21,
2019, by dialing the following numbers:
United States:
+1-646-254-3697International:
+61-2-8199-0299Conference ID:
#6472108A live and archived webcast of the conference
call will also be available at the Company's investor relations
website at http://ir.yy.com/.
Exchange RateThis press release
contains translations of certain Renminbi amounts into U.S. dollars
at specified rates solely for the convenience of readers. Unless
otherwise noted, all translations from Renminbi to U.S. dollars, in
this press release, were made at a rate of RMB6.8650 to US$1.00,
the noon buying rate in effect on June 28, 2019 in the City of New
York for cable transfers in Renminbi per U.S. dollar as certified
for customs purposes by the Federal Reserve Bank of New York.
About YY Inc.YY Inc. (“YY” or
the “Company”) is a global social media platform. The Company’s
highly engaged users contribute to a vibrant social community by
creating, sharing, and enjoying a vast range of entertainment
content and activities. YY enables users to interact with each
other in real time through online live media and offers users a
uniquely engaging and immersive entertainment experience. YY owns
YY Live, a leading live streaming social media platform in China
and Huya, a leading game live streaming platform in China. In
addition, YY completed the acquisition of Bigo in March 2019. Bigo
is a fast-growing global tech company. Headquartered in Singapore,
Bigo owns Bigo Live, a leading global live streaming platform
outside China; Likee, a leading global short-form video social
platform; IMO, a global video communication app, and other social
applications. YY has created an online community for global video
and live streaming users. YY Inc. was listed on the NASDAQ in
November 2012.
Safe Harbor StatementThis
announcement contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates” and similar statements. Among other things, the
business outlook and quotations from management in this
announcement, as well as YY’s strategic and operational plans,
contain forward-looking statements. YY may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (“SEC”), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about YY’s beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: YY’s goals
and strategies; YY’s future business development, results of
operations and financial condition; the expected growth of the
online communication social platform market in China; the
expectation regarding the rate at which to gain active users,
especially paying users; YY’s ability to monetize the user base;
fluctuations in general economic and business conditions in China
and assumptions underlying or related to any of the foregoing.
Further information regarding these and other risks is included in
YY’s filings with the SEC. All information provided in this press
release and in the attachments is as of the date of this press
release, and YY does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
Use of Non-GAAP Financial
MeasuresThe unaudited condensed consolidated financial
information is prepared in conformity with accounting principles
generally accepted in the United States of America (“U.S. GAAP”).
YY uses non-GAAP operating income, non-GAAP operating margin,
non-GAAP net income attributable to controlling interest of YY
Inc., non-GAAP net margin attributable to controlling interest of
YY Inc., non-GAAP net income attributable to common shareholders of
YY Inc., and basic and diluted non-GAAP net income per ADS, which
are non-GAAP financial measures. Non-GAAP operating income is
operating income excluding share-based compensation expenses,
impairment of goodwill and investments, amortization of intangible
assets from business acquisitions, and gain on deconsolidation and
disposal of subsidiary. Non-GAAP operating margin is non-GAAP
operating income as a percentage of net revenues. Non-GAAP net
income is net income excluding share-based compensation expenses,
impairment of goodwill and investments, amortization of intangible
assets from business acquisitions, gain on deconsolidation and
disposal of subsidiary, gain on deemed disposal and disposal of
investments, gain on fair value change of investments and equity
investees’ investments, fair value loss on derivative liabilities,
interest expenses related to the convertible bonds’ amortization to
face value, and income tax effects of above non-GAAP reconciling
items. Non-GAAP net income attributable to controlling interest of
YY Inc. is net income attributable to controlling interest of YY
Inc. excluding share-based compensation expenses, impairment of
goodwill and investments, amortization of intangible assets from
business acquisitions, gain on deconsolidation and disposal of
subsidiary, gain on deemed disposal and disposal of investments,
gain on fair value change of investments and equity investees’
investments, fair value loss on derivative liabilities, interest
expenses related to the convertible bonds’ amortization to face
value, income tax effects of above non-GAAP reconciling items and
adjustment for non-GAAP reconciling items for the income
attributable to non-controlling interests. Non-GAAP net margin is
non-GAAP net income attributable to controlling interest of YY Inc.
as a percentage of net revenues. Non-GAAP net income attributable
to common shareholders of YY Inc. is net income attributable to
common shareholders of YY Inc. excluding share-based compensation
expenses, impairment of goodwill and investments, amortization of
intangible assets from business acquisitions, gain on
deconsolidation and disposal of subsidiary, gain on deemed disposal
and disposal of investments, gain on fair value change of
investments and equity investees’ investments, fair value loss on
derivative liabilities, interest expenses related to the
convertible bonds’ amortization to face value, accretion,
cumulative dividend and deemed dividend to subsidiaries’ preferred
shareholders and income tax effects of above non-GAAP reconciling
items and adjustment for non-GAAP reconciling items for the income
attributable to non-controlling interests. After the non-GAAP
reconciliation, non-GAAP net income attributable to controlling
interests of YY Inc. is equal to the non-GAAP net income
attributable to common shareholders of YY Inc. Basic and diluted
non-GAAP net income per ADS is non-GAAP net income attributable to
common shareholders of YY Inc. divided by weighted average number
of ADS used in the calculation of basic and diluted net income per
ADS. The Company believes that separate analysis and exclusion of
the non-cash impact of above reconciling items adds clarity to the
constituent parts of its performance. The Company reviews these
non-GAAP financial measures together with GAAP financial measures
to obtain a better understanding of its operating performance. It
uses the non-GAAP financial measure for planning, forecasting and
measuring results against the forecast. The Company believes that
non-GAAP financial measure is useful supplemental information for
investors and analysts to assess its operating performance without
the non-cash effect of (i) share-based compensation expenses and
amortization of intangible assets from business acquisitions,
interest expenses related to the convertible bonds’ amortization to
face value, which have been and will continue to be significant
recurring expenses in its business, (ii) impairment of goodwill and
investments, gain on deconsolidation and disposal of subsidiary,
gain on deemed disposal and disposal of investments, gain on fair
value change of investments and equity investees’ investments, fair
value loss on derivative liabilities, and accretion, cumulative
dividend and deemed dividend to subsidiaries’ preferred
shareholders, which may not be recurring in its business, and (iii)
income tax expenses and non-GAAP adjustments for net income (loss)
attributable to non-controlling interest shareholders, which are
affected by above non-GAAP reconciling items. However, the use of
non-GAAP financial measures has material limitations as an
analytical tool. One of the limitations of using non-GAAP financial
measures is that they do not include all items that impact the
Company’s net income for the period. In addition, because non-GAAP
financial measures are not measured in the same manner by all
companies, they may not be comparable to other similar titled
measures used by other companies. In light of the foregoing
limitations, you should not consider non-GAAP financial measure in
isolation from or as an alternative to the financial measure
prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial
measures is not intended to be considered in isolation from, or as
a substitute for, the financial information prepared and presented
in accordance with U.S. GAAP. For more information on these
non-GAAP financial measures, please see the table captioned “YY
Inc. Reconciliations of GAAP and Non-GAAP Results” near the end of
this release.
Investor Relations ContactYY
Inc.Matthew ZhaoTel: +86 (20) 8212-0000Email: IR@YY.com
ICR, Inc. Jack WangTel: +1 (646) 915-1611Email:
IR@YY.com
1 Net income attributable to controlling
interest of YY Inc., is net income less net (loss) income
attributable to the non-controlling interest shareholders and the
mezzanine equity classified as non-controlling interest
shareholder.
2 Non-GAAP net income attributable to
controlling interest of YY Inc. is a non-GAAP financial measure,
which is defined as net income attributable to controlling interest
of YY Inc. excluding share-based compensation expenses, impairment
of goodwill and investment, amortization of intangible assets from
business acquisitions, gain on deconsolidation and disposal of
subsidiary, gain on deemed disposal and disposal of investments
(deemed disposal refers to dilution of equity interest in
equity-method investments), gain on fair value change of
investments and equity investees’ investments, fair value loss on
derivative liabilities, interest expenses related to the
convertible bonds amortization to face value, income tax effects on
non-GAAP adjustment and non-GAAP adjustment for net (loss) income
attributable to non-controlling interests shareholders. These
adjustments amounted to RMB382.1 million (US$55.7 million) and
RMB1,010.1 million in the second quarters of 2019 and 2018,
respectively. Please refer to the section titled “Reconciliation of
GAAP and Non-GAAP Results” for more details.
3 Refers to mobile average monthly active users.
Average mobile MAU for any period is calculated by dividing (i) the
sum of the Company’s mobile active users for each month of such
period, by (ii) the number of months in such period.
4 Refers to a registered user that has purchased
virtual items on YY’s platforms at least once during the period
presented.
5 Non-GAAP operating income is a non-GAAP
financial measure, which is defined as operating income excluding
share-based compensation expenses, amortization of intangible
assets from business acquisitions, impairment of goodwill and
investments and gain on deconsolidation and disposal of a
subsidiary. Please refer to the section titled “Reconciliation of
GAAP and Non-GAAP Results” for details.
6 Non-GAAP operating margin is a non-GAAP
financial measure, which is defined as non-GAAP operating income as
a percentage of net revenues. Please refer to the section titled
“Reconciliation of GAAP and Non-GAAP Results” for details.
7 Non-GAAP net margin is non-GAAP net income
attributable to controlling interest of YY Inc. as a percentage of
net revenues.
8ADS is American Depositary Share. Each ADS
represents twenty Class A common shares of the Company. Diluted net
income per ADS is net income attributable to common shareholders of
YY Inc. divided by weighted average number of diluted ADS.
9Non-GAAP diluted net income per ADS is a
non-GAAP financial measure, which is defined as non-GAAP net income
attributable to common shareholders of YY Inc. divided by weighted
average number of ADS used in the calculation of diluted net income
per ADS. Please refer to the section titled “Reconciliation of GAAP
and Non-GAAP Results” for details.
10 The outlook of net revenues for the third
quarter of 2019 includes the impact from Bigo’s consolidation.
However, when calculating the year-over-year growth rate, Bigo’s
net revenues in the same period of 2018 was not included as the
part of denominator.
|
YY INC. UNAUDITED
CONDENSED CONSOLIDATED BALANCE
SHEETS(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
|
December 31,2018 |
|
June30,2019 |
|
June30,2019 |
|
|
RMB |
|
RMB |
|
US$ |
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
6,004,231 |
|
11,010,997 |
|
1,603,933 |
Restricted cash and cash equivalents |
|
- |
|
283,161 |
|
41,247 |
Short-term deposits |
|
7,326,996 |
|
10,050,554 |
|
1,464,028 |
Restricted short-term deposits |
|
- |
|
302,990 |
|
44,135 |
Short-term investments |
|
979,053 |
|
3,458,790 |
|
503,830 |
Accounts receivable, net |
|
198,428 |
|
629,508 |
|
91,698 |
Amounts due from related parties |
|
193,559 |
|
14,098 |
|
2,054 |
Financing receivables, net |
|
768,343 |
|
494,088 |
|
71,972 |
Prepayments and other current assets |
|
1,019,019 |
|
942,311 |
|
137,260 |
|
|
|
|
|
|
|
Total current
assets |
|
16,489,629 |
|
27,186,497 |
|
3,960,157 |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
Long-term deposits |
|
1,000,000 |
|
- |
|
- |
Deferred tax assets |
|
70,834 |
|
120,141 |
|
17,501 |
Investments |
|
4,591,524 |
|
1,534,593 |
|
223,539 |
Property and equipment, net |
|
1,296,319 |
|
1,984,150 |
|
289,024 |
Land use rights, net |
|
1,784,639 |
|
1,760,591 |
|
256,459 |
Intangible assets, net |
|
74,685 |
|
3,411,719 |
|
496,973 |
Right-of-use assets, net(1) |
|
- |
|
292,791 |
|
42,650 |
Goodwill |
|
11,763 |
|
12,758,974 |
|
1,858,554 |
Financing receivables, net |
|
224,793 |
|
224,048 |
|
32,636 |
Other non-current assets |
|
223,859 |
|
276,233 |
|
40,238 |
|
|
|
|
|
|
|
Total non-current
assets |
|
9,278,416 |
|
22,363,240 |
|
3,257,574 |
|
|
|
|
|
|
|
Total assets |
|
25,768,045 |
|
49,549,737 |
|
7,217,731 |
|
|
|
|
|
|
|
Liabilities, mezzanine
equity and shareholders’ equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Convertible bonds |
|
6,863 |
|
- |
|
- |
Accounts payable |
|
114,589 |
|
215,254 |
|
31,355 |
Deferred revenue |
|
951,616 |
|
1,335,794 |
|
194,580 |
Advances from customers |
|
101,690 |
|
97,081 |
|
14,141 |
Income taxes payable |
|
235,561 |
|
403,005 |
|
58,704 |
Accrued liabilities and other current liabilities |
|
2,414,371 |
|
3,855,975 |
|
561,686 |
Amounts due to related parties |
|
28,336 |
|
34,890 |
|
5,082 |
Lease liabilities due within one year(1) |
|
- |
|
111,179 |
|
16,195 |
Short-term loans |
|
- |
|
281,588 |
|
41,018 |
|
|
|
|
|
|
|
Total current
liabilities |
|
3,853,026 |
|
6,334,766 |
|
922,761 |
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
Convertible bonds |
|
- |
|
4,736,225 |
|
689,909 |
Lease liabilities(1) |
|
- |
|
187,094 |
|
27,253 |
Deferred revenue |
|
91,710 |
|
153,948 |
|
22,425 |
Deferred tax liabilities |
|
27,505 |
|
326,025 |
|
47,491 |
|
|
|
|
|
|
|
Total non-current
liabilities |
|
119,215 |
|
5,403,292 |
|
787,078 |
|
|
|
|
|
|
|
Total
liabilities |
|
3,972,241 |
|
11,738,058 |
|
1,709,839 |
|
|
|
|
|
|
|
YY INC.UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS (CONTINUED)(All amounts in thousands,
except share, ADS and per ADS data) |
|
|
|
December31,2018 |
|
June 30,2019 |
|
June 30,2019 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
Mezzanine
equity |
|
418,673 |
|
439,325 |
|
63,995 |
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
Class A common shares (US$0.00001
par value; 10,000,000,000 and 10,000,000,000 shares authorized,
981,740,848 shares issued and outstanding as of December 31, 2018;
1,298,420,684 shares issued and 1,290,568,495 shares outstanding as
of and June 30, 2019, respectively) |
|
59 |
|
80 |
|
12 |
Class B common shares (US$0.00001
par value; 1,000,000,000 and 1,000,000,000 shares authorized,
288,182,976 and 326,509,555 shares issued and outstanding as
of December 31, 2018 and June 30, 2019, respectively) |
|
21 |
|
24 |
|
3 |
Additional paid-in capital |
|
11,168,866 |
|
21,620,780 |
|
3,149,422 |
Statutory reserves |
|
101,725 |
|
101,725 |
|
14,818 |
Retained earnings |
|
6,913,469 |
|
10,057,138 |
|
1,464,987 |
Accumulated other comprehensive
income |
|
336,152 |
|
600,217 |
|
87,431 |
|
|
|
|
|
|
|
Total YY Inc.’s
shareholders’ equity |
|
18,520,292 |
|
32,379,964 |
|
4,716,673 |
|
|
|
|
|
|
|
Non-controlling interests |
|
2,856,839 |
|
4,992,390 |
|
727,224 |
|
|
|
|
|
|
|
Total shareholders’ equity |
|
21,377,131 |
|
37,372,354 |
|
5,443,897 |
|
|
|
|
|
|
|
Total
liabilities, mezzanine equity and |
|
|
|
|
|
|
shareholders’ equity |
|
25,768,045 |
|
49,549,737 |
|
7,217,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company has adopted ASC842 “Leases”
beginning January 1, 2019 using the optional transition method. The
only major impact of the standard is that assets and liabilities
amounting to RMB145.2 million and RMB141.2 million, respectively,
are recognized beginning January 1, 2019 for leased office space
with terms of more than 12 months.
|
YY INC.UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(All amounts in thousands, except
share, ADS and per ADS data) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30,2018 |
March
31,2019 |
June 30,2019 |
June 30,2019 |
|
June
30,2018 |
June
30,2019 |
June30,2019 |
|
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
Net
revenues |
|
|
|
|
|
|
|
|
|
Live streaming(1) |
|
3,559,666 |
|
|
4,485,020 |
|
|
5,922,761 |
|
|
862,747 |
|
|
6,591,701 |
|
|
10,407,781 |
|
|
1,516,064 |
|
Others |
|
213,564 |
|
|
295,564 |
|
|
372,486 |
|
|
54,259 |
|
|
430,460 |
|
|
668,050 |
|
|
97,312 |
|
|
|
|
|
|
|
|
|
|
|
Total net
revenues |
|
3,773,230 |
|
|
4,780,584 |
|
|
6,295,247 |
|
|
917,006 |
|
|
7,022,161 |
|
|
11,075,831 |
|
|
1,613,376 |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues(2) |
|
(2,313,772 |
) |
|
(3,160,325 |
) |
|
(4,173,841 |
) |
|
(607,988 |
) |
|
(4,329,569 |
) |
|
(7,334,166 |
) |
|
(1,068,342 |
) |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
1,459,458 |
|
|
1,620,259 |
|
|
2,121,406 |
|
|
309,018 |
|
|
2,692,592 |
|
|
3,741,665 |
|
|
545,034 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses(2) |
|
|
|
|
|
|
|
|
|
Research and development
expenses |
|
(295,946 |
) |
|
(404,736 |
) |
|
(655,421 |
) |
|
(95,473 |
) |
|
(545,411 |
) |
|
(1,060,157 |
) |
|
(154,429 |
) |
Sales and marketing expenses |
|
(246,130 |
) |
|
(534,236 |
) |
|
(1,099,494 |
) |
|
(160,159 |
) |
|
(481,788 |
) |
|
(1,633,730 |
) |
|
(237,980 |
) |
General and administrative
expenses |
|
(237,532 |
) |
|
(276,424 |
) |
|
(335,973 |
) |
|
(48,940 |
) |
|
(401,508 |
) |
|
(612,397 |
) |
|
(89,206 |
) |
|
|
|
|
|
|
|
|
|
|
Total operating
expenses |
|
(779,608 |
) |
|
(1,215,396 |
) |
|
(2,090,888 |
) |
|
(304,572 |
) |
|
(1,428,707 |
) |
|
(3,306,284 |
) |
|
(481,615 |
) |
|
|
|
|
|
|
|
|
|
|
Other income |
|
33,922 |
|
|
68,688 |
|
|
41,407 |
|
|
6,032 |
|
|
46,296 |
|
|
110,095 |
|
|
16,037 |
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
713,772 |
|
|
473,551 |
|
|
71,925 |
|
|
10,478 |
|
|
1,310,181 |
|
|
545,476 |
|
|
79,456 |
|
|
|
|
|
|
|
|
|
|
|
Interest expenses |
|
(1,548 |
) |
|
(6,219 |
) |
|
(12,268 |
) |
|
(1,787 |
) |
|
(3,567 |
) |
|
(18,487 |
) |
|
(2,693 |
) |
Interest income and investment
income |
|
128,850 |
|
|
148,289 |
|
|
156,619 |
|
|
22,814 |
|
|
221,041 |
|
|
304,908 |
|
|
44,415 |
|
Foreign currency exchange
(losses) gains, net |
|
(2,823 |
) |
|
1,333 |
|
|
13,801 |
|
|
2,010 |
|
|
3,896 |
|
|
15,134 |
|
|
2,205 |
|
Gain on deemed disposal and
disposal of investments |
|
13,999 |
|
|
- |
|
|
- |
|
|
- |
|
|
13,999 |
|
|
- |
|
|
- |
|
Gain on fair value change of
investments |
|
1,205,049 |
|
|
2,649,843 |
|
|
14,291 |
|
|
2,082 |
|
|
1,631,596 |
|
|
2,664,134 |
|
|
388,075 |
|
Fair value loss on derivative
liabilities |
|
(2,273,355 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2,285,223 |
) |
|
- |
|
|
- |
|
Other non-operating expenses |
|
(2,000 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2,000 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income tax expenses |
|
(218,056 |
) |
|
3,266,797 |
|
|
244,368 |
|
|
35,597 |
|
|
889,923 |
|
|
3,511,165 |
|
|
511,458 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expenses |
|
(147,419 |
) |
|
(123,971 |
) |
|
(143,896 |
) |
|
(20,961 |
) |
|
(295,664 |
) |
|
(267,867 |
) |
|
(39,019 |
) |
|
|
|
|
|
|
|
|
|
|
(Loss) income before
share of income in equity method investments, net of income
taxes |
|
(365,475 |
) |
|
3,142,826 |
|
|
100,472 |
|
|
14,636 |
|
|
594,259 |
|
|
3,243,298 |
|
|
472,439 |
|
|
|
|
|
|
|
|
|
|
|
Share of income in equity method
investments, net of income taxes |
|
88,992 |
|
|
7,156 |
|
|
6,947 |
|
|
1,012 |
|
|
98,171 |
|
|
14,103 |
|
|
2,054 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
|
(276,483 |
) |
|
3,149,982 |
|
|
107,419 |
|
|
15,648 |
|
|
692,430 |
|
|
3,257,401 |
|
|
474,493 |
|
|
|
|
|
|
|
|
|
|
|
Less: Net (loss) income
attributable to the non-controlling interest shareholders and the
mezzanine equity classified as non-controlling interest
shareholders |
|
(176,565 |
) |
|
29,549 |
|
|
65,342 |
|
|
9,518 |
|
|
(171,181 |
) |
|
94,891 |
|
|
13,822 |
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to controlling interest of YY
Inc. |
|
(99,918 |
) |
|
3,120,433 |
|
|
42,077 |
|
|
6,130 |
|
|
863,611 |
|
|
3,162,510 |
|
|
460,671 |
|
|
|
|
|
|
|
|
|
|
|
Less: Accretion of
subsidiaries’ redeemable convertible preferred shares to
redemption value |
|
36,969 |
|
|
9,365 |
|
|
9,476 |
|
|
1,380 |
|
|
67,076 |
|
|
18,841 |
|
|
2,745 |
|
Cumulative dividend on
subsidiary’s Series A Preferred Shares |
|
- |
|
|
6,730 |
|
|
6,811 |
|
|
992 |
|
|
- |
|
|
13,541 |
|
|
1,972 |
|
Deemed dividend to subsidiary’s
Series A preferred shareholders |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
489,284 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common shareholders of YY Inc. |
|
(136,887 |
) |
|
3,104,338 |
|
|
25,790 |
|
|
3,758 |
|
|
307,251 |
|
|
3,130,128 |
|
|
455,954 |
|
|
YY INC.UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (CONTINUED)(All amounts in
thousands, except share, ADS and per ADS data) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30,2018 |
|
March 31,2019 |
|
June 30,2019 |
|
June 30,2019 |
|
June 30,2018 |
|
June 30,2019 |
|
June
30,2019 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
(2.14 |
) |
44.93 |
|
0.32 |
|
0.05 |
|
4.82 |
|
42.06 |
|
6.13 |
—Diluted |
|
(2.14 |
) |
44.55 |
|
0.27 |
|
0.04 |
|
4.75 |
|
41.31 |
|
6.02 |
Weighted average number of ADS
used in calculating net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
63,839,293 |
|
69,097,090 |
|
79,682,966 |
|
79,682,966 |
|
63,780,159 |
|
74,418,556 |
|
74,418,556 |
—Diluted |
|
63,839,293 |
|
69,640,885 |
|
81,167,679 |
|
81,167,679 |
|
64,712,271 |
|
75,764,380 |
|
75,764,380 |
(1) Live streaming revenues by
geographical areas were as follows:
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30,2018 |
March 31,2019 |
June 30,2019 |
June
30,2019 |
|
June
30,2018 |
June
30,2019 |
June
30,2019 |
|
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
PRC |
|
3,559,666 |
4,189,410 |
5,016,587 |
730,748 |
|
6,591,701 |
9,205,997 |
1,341,004 |
Non-PRC |
|
- |
295,610 |
906,174 |
131,999 |
|
- |
1,201,784 |
175,060 |
(2) Share-based compensation was
allocated in cost of revenues and operating expenses as
follows:
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30,2018 |
March 31,2019 |
June 30,2019 |
June
30,2019 |
|
June
30,2018 |
June
30,2019 |
June
30,2019 |
|
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
24,059 |
14,309 |
15,604 |
2,273 |
|
43,667 |
29,913 |
4,357 |
Research and development
expenses |
|
67,912 |
70,607 |
160,029 |
23,311 |
|
122,379 |
230,636 |
33,596 |
Sales and marketing expenses |
|
2,406 |
1,976 |
3,452 |
503 |
|
4,275 |
5,428 |
791 |
General and administrative
expenses |
|
124,978 |
94,877 |
85,197 |
12,410 |
|
161,541 |
180,074 |
26,231 |
|
YY INC.RECONCILIATION OF GAAP AND NON-GAAP
RESULTS(All amounts in thousands, except share, ADS and
per ADS data) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30,2018 |
|
March 31,2019 |
|
June 30,2019 |
|
June
30,2019 |
|
|
June 30,2018 |
|
June
30,2019 |
|
June30,2019 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
713,772 |
|
473,551 |
|
71,925 |
|
10,478 |
|
|
1,310,181 |
|
545,476 |
|
79,456 |
|
Share-based compensation
expenses |
|
219,355 |
|
181,769 |
|
264,282 |
|
38,497 |
|
|
331,862 |
|
446,051 |
|
64,975 |
|
Impairment of goodwill and
investments |
|
- |
|
- |
|
- |
|
- |
|
|
18,349 |
|
- |
|
- |
|
Amortization of intangible assets
from business acquisitions |
|
- |
|
62,000 |
|
188,740 |
|
27,493 |
|
|
- |
|
250,740 |
|
36,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
933,127 |
|
717,320 |
|
524,947 |
|
76,468 |
|
|
1,660,392 |
|
1,242,267 |
|
180,955 |
|
Net (loss) income |
|
(276,483 |
) |
3,149,982 |
|
107,419 |
|
15,648 |
|
|
692,430 |
|
3,257,401 |
|
474,493 |
|
Share-based compensation
expenses |
|
219,355 |
|
181,769 |
|
264,282 |
|
38,497 |
|
|
331,862 |
|
446,051 |
|
64,975 |
|
Impairment of goodwill and
investments |
|
- |
|
- |
|
- |
|
- |
|
|
18,349 |
|
- |
|
- |
|
Amortization of intangible assets
from business acquisitions |
|
- |
|
62,000 |
|
188,740 |
|
27,493 |
|
|
- |
|
250,740 |
|
36,524 |
|
Gain on deemed disposal and
disposal of investments |
|
(13,999 |
) |
- |
|
- |
|
- |
|
|
(13,999 |
) |
- |
|
- |
|
Gain on fair value change of
investments and equity investees’ investments |
|
(1,287,301 |
) |
(2,655,338 |
) |
(13,332 |
) |
(1,942 |
) |
|
(1,713,848 |
) |
(2,668,670 |
) |
(388,736 |
) |
Fair value loss on derivative
liabilities |
|
2,273,355 |
|
- |
|
- |
|
- |
|
|
2,285,223 |
|
- |
|
- |
|
Interest expenses related to the
convertible bonds’ amortization to face value |
|
- |
|
- |
|
4,287 |
|
624 |
|
|
- |
|
4,287 |
|
624 |
|
Income tax effects on non-GAAP
adjustments |
|
30,601 |
|
(16,996 |
) |
(31,891 |
) |
(4,645 |
) |
|
75,067 |
|
(48,887 |
) |
(7,121 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
|
945,528 |
|
721,417 |
|
519,505 |
|
75,675 |
|
|
1,675,084 |
|
1,240,922 |
|
180,759 |
|
Net (loss) income attributable to common shareholders of YY
Inc. |
|
(136,887 |
) |
3,104,338 |
|
25,790 |
|
3,758 |
|
|
307,251 |
|
3,130,128 |
|
455,954 |
|
Share-based compensation
expenses |
|
219,355 |
|
181,769 |
|
264,282 |
|
38,497 |
|
|
331,862 |
|
446,051 |
|
64,975 |
|
Impairment of goodwill and
investments |
|
- |
|
- |
|
- |
|
- |
|
|
18,349 |
|
- |
|
- |
|
Amortization of intangible assets
from business acquisitions |
|
- |
|
62,000 |
|
188,740 |
|
27,493 |
|
|
- |
|
250,740 |
|
36,524 |
|
Gain on deemed disposal and
disposal of investments |
|
(13,999 |
) |
- |
|
- |
|
- |
|
|
(13,999 |
) |
- |
|
- |
|
Gain on fair value change of
investments and equity investees’ investments |
|
(1,287,301 |
) |
(2,655,338 |
) |
(13,332 |
) |
(1,942 |
) |
|
(1,713,848 |
) |
(2,668,670 |
) |
(388,736 |
) |
Fair value loss on derivative
liabilities |
|
2,273,355 |
|
- |
|
- |
|
- |
|
|
2,285,223 |
|
- |
|
- |
|
Interest expenses related to the
convertible bonds’ amortization to face value |
|
- |
|
- |
|
4,287 |
|
624 |
|
|
- |
|
4,287 |
|
624 |
|
Accretion, cumulative dividend
and deemed dividend to subsidiaries’ preferred shareholders |
|
36,969 |
|
16,095 |
|
16,287 |
|
2,372 |
|
|
556,360 |
|
32,382 |
|
4,717 |
|
Income tax effects on non-GAAP
adjustments |
|
30,601 |
|
(16,996 |
) |
(31,891 |
) |
(4,645 |
) |
|
75,067 |
|
(48,887 |
) |
(7,121 |
) |
Non-GAAP adjustments for net loss
attributable to the non-controlling interest shareholders |
|
(211,884 |
) |
(38,346 |
) |
(29,941 |
) |
(4,361 |
) |
|
(206,064 |
) |
(68,287 |
) |
(9,947 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to controlling interest and common
shareholders of YY Inc. |
|
910,209 |
|
653,522 |
|
424,222 |
|
61,796 |
|
|
1,640,201 |
|
1,077,744 |
|
156,990 |
|
Non-GAAP net income per
ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
14.26 |
|
9.46 |
|
5.32 |
|
0.77 |
|
|
25.72 |
|
14.48 |
|
2.11 |
|
—Diluted |
|
13.75 |
|
9.32 |
|
5.14 |
|
0.75 |
|
|
24.72 |
|
14.11 |
|
2.06 |
|
Weighted average number of ADS
used in calculating Non-GAAP net income per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
|
63,839,293 |
|
69,097,090 |
|
79,682,966 |
|
79,682,966 |
|
|
63,780,159 |
|
74,418,556 |
|
74,418,556 |
|
—Diluted |
|
64,701,643 |
|
69,640,885 |
|
81,855,180 |
|
81,855,180 |
|
|
64,721,304 |
|
75,764,380 |
|
75,764,380 |
|
|
YY INC.UNAUDITED SEGMENT
REPORT(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
|
Three Months Ended |
|
|
June 30,
2019 |
|
|
|
|
|
|
|
|
|
|
YY(1) |
Huya |
Bigo |
Elimination(2) |
Total |
Total |
|
|
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
Live streaming |
|
2,863,058 |
|
|
1,921,485 |
|
|
1,138,218 |
|
|
- |
|
|
5,922,761 |
|
|
862,747 |
|
Others |
|
190,758 |
|
|
88,976 |
|
|
92,752 |
|
|
- |
|
|
372,486 |
|
|
54,259 |
|
|
|
|
|
|
|
|
|
Total net revenues |
|
3,053,816 |
|
|
2,010,461 |
|
|
1,230,970 |
|
|
- |
|
|
6,295,247 |
|
|
917,006 |
|
|
|
|
|
|
|
|
|
Cost of revenues(3) |
|
(1,627,744 |
) |
|
(1,674,793 |
) |
|
(871,304 |
) |
|
- |
|
|
(4,173,841 |
) |
|
(607,988 |
) |
|
|
|
|
|
|
|
|
Gross profit |
|
1,426,072 |
|
|
335,668 |
|
|
359,666 |
|
|
- |
|
|
2,121,406 |
|
|
309,018 |
|
Operating expenses(3) |
|
|
|
|
|
|
|
Research and development expenses |
|
(241,253 |
) |
|
(105,411 |
) |
|
(308,757 |
) |
|
- |
|
|
(655,421 |
) |
|
(95,473 |
) |
Sales and marketing expenses |
|
(335,602 |
) |
|
(119,592 |
) |
|
(644,300 |
) |
|
- |
|
|
(1,099,494 |
) |
|
(160,159 |
) |
General and administrative expenses |
|
(171,032 |
) |
|
(74,328 |
) |
|
(90,613 |
) |
|
- |
|
|
(335,973 |
) |
|
(48,940 |
) |
|
|
|
|
|
|
|
|
Total operating expenses |
|
(747,887 |
) |
|
(299,331 |
) |
|
(1,043,670 |
) |
|
- |
|
|
(2,090,888 |
) |
|
(304,572 |
) |
|
|
|
|
|
|
|
|
Other income |
|
8,602 |
|
|
31,332 |
|
|
1,473 |
|
|
- |
|
|
41,407 |
|
|
6,032 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
686,787 |
|
|
67,669 |
|
|
(682,531 |
) |
|
- |
|
|
71,925 |
|
|
10,478 |
|
|
|
|
|
|
|
|
|
Interest expenses |
|
(12,268 |
) |
|
- |
|
|
(4,201 |
) |
|
4,201 |
|
|
(12,268 |
) |
|
(1,787 |
) |
Interest income and investment income |
|
84,791 |
|
|
75,021 |
|
|
1,008 |
|
|
(4,201 |
) |
|
156,619 |
|
|
22,814 |
|
Foreign currency exchange (losses) gains, net |
|
(4,181 |
) |
|
787 |
|
|
17,195 |
|
|
- |
|
|
13,801 |
|
|
2,010 |
|
Gain on fair value change of investments |
|
14,291 |
|
|
- |
|
|
- |
|
|
- |
|
|
14,291 |
|
|
2,082 |
|
|
|
|
|
|
|
|
|
Income (loss) before income tax expenses |
|
769,420 |
|
|
143,477 |
|
|
(668,529 |
) |
|
- |
|
|
244,368 |
|
|
35,597 |
|
|
|
|
|
|
|
|
|
Income tax (expenses) benefits |
|
(160,152 |
) |
|
(21,632 |
) |
|
37,888 |
|
|
- |
|
|
(143,896 |
) |
|
(20,961 |
) |
|
|
|
|
|
|
|
|
Income (loss) before share of income (loss) in equity
method investments, net of income taxes |
|
609,268 |
|
|
121,845 |
|
|
(630,641 |
) |
|
- |
|
|
100,472 |
|
|
14,636 |
|
|
|
|
|
|
|
|
|
Share of income (loss) in equity method investments, net of income
taxes |
|
6,991 |
|
|
(44 |
) |
|
- |
|
|
- |
|
|
6,947 |
|
|
1,012 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
616,259 |
|
|
121,801 |
|
|
(630,641 |
) |
|
- |
|
|
107,419 |
|
|
15,648 |
|
|
|
|
|
|
|
|
|
- In 2019 the segment of “YY Live” was renamed as
“YY”.
- The elimination mainly consists of interest income and interest
expenses generated from the loan between YY and Bigo
segments.
- Share-based compensation was allocated in cost of revenues and
operating expenses as follows:
|
|
|
|
|
Three Months Ended |
|
|
June 30,
2019 |
|
|
|
|
|
YY |
Huya |
Bigo |
Total |
Total |
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Cost of revenues |
|
1,955 |
4,270 |
9,379 |
15,604 |
2,273 |
Research and development expenses |
|
28,053 |
13,931 |
118,045 |
160,029 |
23,311 |
Sales and marketing expenses |
|
655 |
907 |
1,890 |
3,452 |
503 |
General and administrative expenses |
|
43,189 |
29,501 |
12,507 |
85,197 |
12,410 |
|
YY INC.RECONCILIATION OF GAAP AND NON-GAAP
RESULTS OF UNAUDITED SEGMENT REPORT (All amounts in
thousands, except share, ADS and per ADS data) |
|
|
|
Three Months Ended |
|
|
June 30, 2019 |
|
|
|
|
|
YY |
|
Huya |
|
Bigo |
|
Total |
Total |
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
US$ |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
686,787 |
|
|
67,669 |
|
(682,531 |
) |
|
71,925 |
|
|
10,478 |
|
Share-based compensation expenses |
|
73,852 |
|
|
48,609 |
|
141,821 |
|
|
264,282 |
|
|
38,497 |
|
Amortization of intangible assets from business acquisitions |
|
- |
|
|
- |
|
188,740 |
|
|
188,740 |
|
|
27,493 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (loss) |
|
760,639 |
|
|
116,278 |
|
(351,970 |
) |
|
524,947 |
|
|
76,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
616,259 |
|
|
121,801 |
|
(630,641 |
) |
|
107,419 |
|
|
15,648 |
|
Share-based compensation expenses |
|
73,852 |
|
|
48,609 |
|
141,821 |
|
|
264,282 |
|
|
38,497 |
|
Amortization of intangible assets from business acquisitions |
|
- |
|
|
- |
|
188,740 |
|
|
188,740 |
|
|
27,493 |
|
Gain on fair value change of investments and equity investees’
investments |
|
(13,332 |
) |
|
- |
|
- |
|
|
(13,332 |
) |
|
(1,942 |
) |
Interest expenses related to the convertible bonds’ amortization to
face value |
|
4,287 |
|
|
- |
|
- |
|
|
4,287 |
|
|
624 |
|
Income tax effects on non-GAAP adjustments |
|
1,421 |
|
|
- |
|
(33,312 |
) |
|
(31,891 |
) |
|
(4,645 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) |
|
682,487 |
|
|
170,410 |
|
(333,392 |
) |
|
519,505 |
|
|
75,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.UNAUDITED SEGMENT
REPORT(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
|
Three Months Ended |
|
|
March 31,
2019 |
|
|
|
|
|
|
|
|
|
|
YY |
Huya |
Bigo(1) |
Elimination(2) |
Total |
Total |
|
|
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
Live streaming |
|
2,566,523 |
|
|
1,552,482 |
|
|
366,015 |
|
|
- |
|
|
4,485,020 |
|
|
668,289 |
|
Others |
|
186,733 |
|
|
78,996 |
|
|
29,835 |
|
|
- |
|
|
295,564 |
|
|
44,040 |
|
|
|
|
|
|
|
|
|
Total net revenues |
|
2,753,256 |
|
|
1,631,478 |
|
|
395,850 |
|
|
- |
|
|
4,780,584 |
|
|
712,329 |
|
|
|
|
|
|
|
|
|
Cost of revenues(3) |
|
(1,548,046 |
) |
|
(1,358,105 |
) |
|
(254,174 |
) |
|
- |
|
|
(3,160,325 |
) |
|
(470,903 |
) |
|
|
|
|
|
|
|
|
Gross profit |
|
1,205,210 |
|
|
273,373 |
|
|
141,676 |
|
|
- |
|
|
1,620,259 |
|
|
241,426 |
|
Operating expenses(3) |
|
|
|
|
|
|
|
Research and development expenses |
|
(235,502 |
) |
|
(90,044 |
) |
|
(79,190 |
) |
|
- |
|
|
(404,736 |
) |
|
(60,308 |
) |
Sales and marketing expenses |
|
(266,317 |
) |
|
(78,164 |
) |
|
(189,755 |
) |
|
- |
|
|
(534,236 |
) |
|
(79,604 |
) |
General and administrative expenses |
|
(163,364 |
) |
|
(85,811 |
) |
|
(27,249 |
) |
|
- |
|
|
(276,424 |
) |
|
(41,188 |
) |
|
|
|
|
|
|
|
|
Total operating expenses |
|
(665,183 |
) |
|
(254,019 |
) |
|
(296,194 |
) |
|
- |
|
|
(1,215,396 |
) |
|
(181,100 |
) |
|
|
|
|
|
|
|
|
Other income |
|
58,066 |
|
|
8,864 |
|
|
1,758 |
|
|
- |
|
|
68,688 |
|
|
10,235 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
598,093 |
|
|
28,218 |
|
|
(152,760 |
) |
|
- |
|
|
473,551 |
|
|
70,561 |
|
|
|
|
|
|
|
|
|
Interest expenses |
|
(6,219 |
) |
|
- |
|
|
(1,395 |
) |
|
1,395 |
|
|
(6,219 |
) |
|
(927 |
) |
Interest income and investment income |
|
94,745 |
|
|
54,585 |
|
|
354 |
|
|
(1,395 |
) |
|
148,289 |
|
|
22,096 |
|
Foreign currency exchange (losses) gains, net |
|
(965 |
) |
|
(374 |
) |
|
2,672 |
|
|
- |
|
|
1,333 |
|
|
199 |
|
Gain on fair value change of investments |
|
2,649,843 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,649,843 |
|
|
394,839 |
|
|
|
|
|
|
|
|
|
Income (loss) before income tax expenses |
|
3,335,497 |
|
|
82,429 |
|
|
(151,129 |
) |
|
- |
|
|
3,266,797 |
|
|
486,768 |
|
|
|
|
|
|
|
|
|
Income tax (expenses) benefits |
|
(110,380 |
) |
|
(18,968 |
) |
|
5,377 |
|
|
- |
|
|
(123,971 |
) |
|
(18,472 |
) |
|
|
|
|
|
|
|
|
Income (loss) before share of income (loss) in equity
method investments, net of income taxes |
|
3,225,117 |
|
|
63,461 |
|
|
(145,752 |
) |
|
- |
|
|
3,142,826 |
|
|
468,296 |
|
|
|
|
|
|
|
|
|
Share of income (loss) in equity method investments, net of income
taxes |
|
7,157 |
|
|
(1 |
) |
|
- |
|
|
- |
|
|
7,156 |
|
|
1,066 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
3,232,274 |
|
|
63,460 |
|
|
(145,752 |
) |
|
- |
|
|
3,149,982 |
|
|
469,362 |
|
|
|
|
|
|
|
|
|
- On March 4, 2019, YY completed the acquisition of Bigo.
Therefore, Bigo’s financial results from March 4, 2019 to March 31,
2019 were included in YY’s consolidated financial
statements.
- The elimination mainly consists of interest income and interest
expenses generated from the loan between YY and Bigo
segments.
- Share-based compensation was allocated in cost of revenues and
operating expenses as follows:
|
|
|
Three Months Ended |
|
|
March 31,
2019 |
|
|
|
|
|
YY |
Huya |
Bigo |
Total |
Total |
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Cost of revenues |
|
7,224 |
4,020 |
3,065 |
14,309 |
2,132 |
Research and development expenses |
|
25,992 |
11,824 |
32,791 |
70,607 |
10,521 |
Sales and marketing expenses |
|
552 |
904 |
520 |
1,976 |
294 |
General and administrative expenses |
|
38,194 |
51,078 |
5,605 |
94,877 |
14,137 |
|
YY INC.RECONCILIATION OF GAAP AND NON-GAAP RESULTS
OF UNAUDITED SEGMENT REPORT (All amounts in thousands, except
share, ADS and per ADS data) |
|
|
|
Three Months Ended |
|
|
March 31, 2019 |
|
|
|
|
|
YY |
|
Huya |
Bigo |
Total |
Total |
|
|
RMB |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
598,093 |
|
|
28,218 |
|
(152,760 |
) |
|
473,551 |
|
|
70,561 |
|
Share-based compensation expenses |
|
71,962 |
|
|
67,826 |
|
41,981 |
|
|
181,769 |
|
|
27,084 |
|
Amortization of intangible assets from business acquisitions |
|
- |
|
|
- |
|
62,000 |
|
|
62,000 |
|
|
9,238 |
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (loss) |
|
670,055 |
|
|
96,044 |
|
(48,779 |
) |
|
717,320 |
|
|
106,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
3,232,274 |
|
|
63,460 |
|
(145,752 |
) |
|
3,149,982 |
|
|
469,362 |
|
Share-based compensation expenses |
|
71,962 |
|
|
67,826 |
|
41,981 |
|
|
181,769 |
|
|
27,084 |
|
Amortization of intangible assets from business acquisitions |
|
- |
|
|
- |
|
62,000 |
|
|
62,000 |
|
|
9,238 |
|
Gain on fair value change of investments and equity investees’
investments |
|
(2,655,338 |
) |
|
- |
|
- |
|
|
(2,655,338 |
) |
|
(395,658 |
) |
Income tax effects on non-GAAP adjustments |
|
(7,479 |
) |
|
- |
|
(9,517 |
) |
|
(16,996 |
) |
|
(2,532 |
) |
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) |
|
641,419 |
|
|
131,286 |
|
(51,288 |
) |
|
721,417 |
|
|
107,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YY INC.UNAUDITED SEGMENT
REPORT(All amounts in thousands, except share, ADS and per
ADS data) |
|
|
|
Three Months Ended |
|
|
June 30,
2018 |
|
|
|
|
|
|
|
|
|
YY |
Huya |
Elimination(1) |
Total |
Total |
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
Live streaming |
|
2,567,854 |
|
|
991,812 |
|
|
- |
|
|
3,559,666 |
|
|
537,950 |
|
Others |
|
167,044 |
|
|
46,520 |
|
|
- |
|
|
213,564 |
|
|
32,275 |
|
|
|
|
|
|
|
|
Total net revenues |
|
2,734,898 |
|
|
1,038,332 |
|
|
- |
|
|
3,773,230 |
|
|
570,225 |
|
|
|
|
|
|
|
|
Cost of revenues(2) |
|
(1,441,807 |
) |
|
(871,965 |
) |
|
- |
|
|
(2,313,772 |
) |
|
(349,666 |
) |
|
|
|
|
|
|
|
Gross profit |
|
1,293,091 |
|
|
166,367 |
|
|
- |
|
|
1,459,458 |
|
|
220,559 |
|
Operating expenses(2) |
|
|
|
|
|
|
Research and development expenses |
|
(235,982 |
) |
|
(59,964 |
) |
|
- |
|
|
(295,946 |
) |
|
(44,724 |
) |
Sales and marketing expenses |
|
(204,448 |
) |
|
(41,682 |
) |
|
- |
|
|
(246,130 |
) |
|
(37,196 |
) |
General and administrative expenses |
|
(149,059 |
) |
|
(88,473 |
) |
|
- |
|
|
(237,532 |
) |
|
(35,897 |
) |
|
|
|
|
|
|
|
Total operating expenses |
|
(589,489 |
) |
|
(190,119 |
) |
|
- |
|
|
(779,608 |
) |
|
(117,817 |
) |
|
|
|
|
|
|
|
Other income |
|
27,463 |
|
|
6,459 |
|
|
- |
|
|
33,922 |
|
|
5,126 |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
731,065 |
|
|
(17,293 |
) |
|
- |
|
|
713,772 |
|
|
107,868 |
|
|
|
|
|
|
|
|
Interest expenses |
|
(1,548 |
) |
|
- |
|
|
- |
|
|
(1,548 |
) |
|
(234 |
) |
Interest income and investment income |
|
86,406 |
|
|
42,444 |
|
|
- |
|
|
128,850 |
|
|
19,472 |
|
Foreign currency exchange losses, net |
|
(2,823 |
) |
|
- |
|
|
- |
|
|
(2,823 |
) |
|
(427 |
) |
Gain on deemed disposal and disposal of investments |
|
13,999 |
|
|
- |
|
|
- |
|
|
13,999 |
|
|
2,116 |
|
Gain on fair value change of investments |
|
1,003,050 |
|
|
- |
|
|
201,999 |
|
|
1,205,049 |
|
|
182,111 |
|
Fair value loss on derivative liabilities |
|
- |
|
|
(2,273,355 |
) |
|
- |
|
|
(2,273,355 |
) |
|
(343,558 |
) |
Other non-operating expenses |
|
(2,000 |
) |
|
- |
|
|
- |
|
|
(2,000 |
) |
|
(302 |
) |
|
|
|
|
|
|
|
Income (loss) before income tax expenses |
|
1,828,149 |
|
|
(2,248,204 |
) |
|
201,999 |
|
|
(218,056 |
) |
|
(32,954 |
) |
|
|
|
|
|
|
|
Income tax (expenses) benefits |
|
(126,522 |
) |
|
6,070 |
|
|
(26,967 |
) |
|
(147,419 |
) |
|
(22,278 |
) |
|
|
|
|
|
|
|
Income (loss) before share of
income in equity method investments, net
of income taxes |
|
1,701,627 |
|
|
(2,242,134 |
) |
|
175,032 |
|
|
(365,475 |
) |
|
(55,232 |
) |
|
|
|
|
|
|
|
Share of income in equity method investments, net of income
taxes |
|
147,337 |
|
|
116,687 |
|
|
(175,032 |
) |
|
88,992 |
|
|
13,449 |
|
|
|
|
|
|
|
|
Net income
(loss) |
|
1,848,964 |
|
|
(2,125,447 |
) |
|
- |
|
|
(276,483 |
) |
|
(41,783 |
) |
|
|
|
|
|
|
|
- Elimination represents the gain resulting from change in fair
value of an investment of one of the Company's subsidiaries, on
which YY segment and Huya segment have joint control and accounted
for as equity method investment.
- Share-based compensation was allocated in cost of revenues and
operating expenses as follows:
|
|
Three Months Ended |
|
|
June 30,
2018 |
|
|
|
|
|
|
|
|
YY |
Huya |
Total |
Total |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
Cost of revenues |
|
21,406 |
2,653 |
24,059 |
3,636 |
Research and development expenses |
|
62,071 |
5,841 |
67,912 |
10,263 |
Sales and marketing expenses |
|
1,674 |
732 |
2,406 |
364 |
General and administrative expenses |
|
60,100 |
64,878 |
124,978 |
18,887 |
|
YY
INC.RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF
UNAUDITED SEGMENT REPORT (All amounts in thousands,
except share, ADS and per ADS data) |
|
|
|
Three Months Ended |
|
|
June 30,
2018 |
|
|
|
|
|
|
|
|
|
YY |
Huya |
Elimination |
Total |
Total |
|
|
RMB |
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Operating income (loss) |
|
731,065 |
|
|
(17,293 |
) |
|
- |
|
|
713,772 |
|
|
107,868 |
|
Share-based compensation expenses |
|
145,251 |
|
|
74,104 |
|
|
- |
|
|
219,355 |
|
|
33,150 |
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
876,316 |
|
|
56,811 |
|
|
- |
|
|
933,127 |
|
|
141,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
1,848,964 |
|
|
(2,125,447 |
) |
|
- |
|
|
(276,483 |
) |
|
(41,783 |
) |
Share-based compensation expenses |
|
145,251 |
|
|
74,104 |
|
|
- |
|
|
219,355 |
|
|
33,150 |
|
Gain on deemed disposal and disposal of investments |
|
(13,999 |
) |
|
- |
|
|
- |
|
|
(13,999 |
) |
|
(2,116 |
) |
Gain on fair value change of investments and equity investee’s
investments |
|
(1,143,680 |
) |
|
(116,654 |
) |
|
(26,967 |
) |
|
(1,287,301 |
) |
|
(194,541 |
) |
Fair value loss on derivative liabilities |
|
- |
|
|
2,273,355 |
|
|
- |
|
|
2,273,355 |
|
|
343,558 |
|
Income tax effects on non-GAAP adjustments |
|
3,634 |
|
|
- |
|
|
26,967 |
|
|
30,601 |
|
|
4,625 |
|
|
|
|
|
|
|
|
Non-GAAP net
income |
|
840,170 |
|
|
105,358 |
|
|
- |
|
|
945,528 |
|
|
142,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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