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Long-term Investments
 12 Months Ended
Dec. 31, 2021
Long-term Investments  
Long-term Investments

11.

Long-term Investments

The following is a summary of long-term investments (in thousands):

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December 31, 

    

December 31, 

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2020

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2021

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RMB

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RMB

Investments in equity method investees

 

1,621,327

 

3,776,245

Equity investments with readily determinable fair values

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3,743,590

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5,886,911

Equity investments without readily determinable fair values

 

6,333,746

 

8,802,976

Investments accounted for at fair values

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—

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194,280

Debt investments

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12,596

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144,490

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11,711,259

 

18,804,902

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(a)

Investments in equity method investees

The Group recorded equity share of earnings of RMB4.3 million, RMB172.5 million and RMB1,575.5 million for the years ended December 31, 2019, 2020, and 2021, respectively, which was included in “Investment income, net” in the consolidated statements of operations and comprehensive income. Significant equity method investments are summarized as follows.

(1)In August 2013, the Group established a joint venture with China Telecom Corp. Ltd. (“China Telecom”), Zhejiang Yixin Technology Co., Ltd. (formerly known as Hangzhou Yixin Technology Co., Ltd.) (“Yixin”) to launch “YiChat”, a proprietary social instant messaging application for smart phones. The Group contributed RMB200.0 million cash in exchange for a 27.0% equity interest in Yixin. In July 2015, the Group increased its equity shares in Yixin to 35.0% with a cash consideration of approximately RMB127.5 million.
(2)As of December 31, 2020, the Group invested an aggregated cash consideration of RMB897.2 million in three limited partnerships as a limited partner, and in 2021, the Group further contributed RMB54.2 million, RMB42.5 million and RMB310.0 million cash in these three limited partnerships, respectively. In addition, the Group contributed RMB211.8 million and RMB127.6 million cash in another two limited partnerships as a limited partner, respectively. The objectives of these limited partnerships are to engage in investment in online game business. The Group accounted such investments under the equity method.

(b)

Equity investments with readily determinable fair values

As of December 31, 2021, equity investments with readily determinable fair values included RMB2,111.4 million invested in shares of AppLovin Corporation, RMB1,356.7 million invested in shares of Alibaba, RMB618.7 million invested in shares of Devolver Digital, Inc., RMB559.0 million invested in shares of Shenzhen Transsion Holding Limited, RMB534.8 million invested in shares of Embracer Group AB (publ), RMB498.4 million invested in shares of Huatai Securities Company Limited (“Huatai”), and RMB208.0 million invested in shares of tinyBuild Inc. The Group recorded fair value gain of RMB763.2 million, RMB720.6 million and RMB91.1 million related to the equity investments with readily determinable fair value for the year ended December 31, 2019, 2020 and 2021, respectively.

The Group also received cash dividends of RMB12.7 million, RMB12.7 million and RMB18.9 million from Huatai for the years ended December 31, 2019, 2020 and 2021, respectively.

(c)

Equity investments without readily determinable fair value

Equity investments without readily determinable fair value represent investments in privately held companies with no readily determinable fair value. The Group does not have significant influence on these investees, or the investments are not common stock or in substance common stock. These investments are classified as equity investments without readily determinable fair value, and are carried at cost less impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. For the year ended December 31, 2019, 2020 and 2021, nil, nil and RMB380.8 million upward adjustments to the carrying value of equity securities without readily determinable fair value resulted from such transactions were recognized as “Investment income/(losses), net” in the consolidated statements of operations and comprehensive income, respectively.

The Group recognized a gain of RMB86.1 million, RMB36.1 million and RMB172.5 million related to the disposal of the Group’s investments in equity securities without readily determinable fair value as “Investment income/(losses), net” in the consolidated statements of operations and comprehensive income for the years ended December 31, 2019, 2020 and 2021, respectively.

The Group recognized impairment provision of RMB168.4 million, RMB55.6 million and RMB19.2 million related to certain of the equity investments without readily determinable fair value as “Investment income/(losses), net” in the consolidated statements of operations and comprehensive income for the years ended December 31, 2019, 2020 and 2021, respectively.