XML 54 R33.htm IDEA: XBRL DOCUMENT

PRINCIPAL ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Company's major VIEs and VIE's subsidiaries

The following is a summary of the Company’s major VIEs and VIEs’ subsidiaries:


Name of major VIEs and their major subsidiaries		Date of establishment/acquisition

Shanghai Ctrip Commerce Co., Ltd. (“Shanghai Ctrip Commerce”)		Established on July 18, 2000

Shanghai Huacheng Southwest International Travel Agency Co., Ltd. (“Shanghai Huacheng”, a subsidiary of Shanghai Ctrip Commerce)		Established on March 13, 2001

Chengdu Ctrip Travel Agency Co., Ltd. (“Chengdu Ctrip”)		Established on January 8, 2007

Beijing Qu Na Information Technology Company Limited (“Qunar Beijing”)		Established on March 17, 2006

Summary of consolidated balance sheet information of VIEs

Summary of selected financial information of the VIEs, which represents aggregated financial information of the VIEs and their respective subsidiaries included in the accompanying consolidated financial statements, is as follows (RMB in millions):


	As of December 31,
	2021			2022
Selected Balance Sheets Data of the VIEs
Cash and cash equivalents		7,084			2,891
Short-term investments		1,612			2,643
Accounts receivable, net		2,480			606
Prepayments and other current assets		2,208			2,375
Investments (non-current)		3,980			2,121
Total assets		28,122			17,480
Less: Inter-company receivables (Note i)		(8,810	)		(4,852	)
Total assets excluding inter-company receivables		19,312			12,628
Short-term debt and current portion of long-term debt		5,310			5,215
Accounts payable		1,944			1,497
Advances from customers		1,892			1,212
Other payables and accruals		2,473			2,095
Total liabilities		25,045			15,558
Less: Inter-company payables (Note ii)		(12,946	)		(5,150	)
Total liabilities excluding inter-company payables		12,099			10,408

Note i :The inter-company receivables as of December 31, 2021 and 2022 mainly represented the receivables of VIEs due from the Company’s wholly-owned subsidiaries for treasury cash management purpose.

Note ii : The inter-company payables as of December 31, 2021 and 2022 mainly represented payables of VIEs due to the Company’s wholly-owned subsidiaries for treasury cash management purpose.

Summary of consolidated results of operations information of VIEs

The following table set forth the summary of results of operations of the VIEs and their subsidiaries of the Company (RMB in millions):


	For the years ended December 31,
	2020			2021			2022
Net revenues		6,513			6,035			4,335
Cost of revenues		2,471			2,557			2,292
Net loss		(254	)		(119	)		(495	)

Summary of consolidated results of cash flows information of VIEs

The following tables set forth the summary of cash flow activities of the VIEs and their subsidiaries of the Company (RMB in millions):


	For the year ended December 31,
	2020			2021			2022
Net cash (used in)/provided by operating activities		(597	)		1,271			(1,677	)
Net cash provided by investing activities		349			618			4,317
Net cash provided by/(used in) financing activities		255			(1,566	)		(6,957	)

Schedule of property, equipment and software estimated useful lives


Building		30 - 40 years
Leasehold improvements		Lesser of the term of the lease or the estimated useful lives of the assets
Website-related equipment		3- 5 years
Computer equipment		3-5 years
Furniture and fixtures		3-5 years
Software		3-5 years

Allowance for doubtful accounts


	2020			2021			2022

Allowance at beginning of year		256			799			815
Cumulative effect of adoption of new accounting standard		83			—			—
Deconsolidation of subsidiaries		(27	)		(1	)		—
Provisions for credit losses		700			141			296
Write-offs		(213	)		(124	)		(341	)

Allowance at end of year		799			815			770

Company's share option activity under all the incentive plans

The following table summarized the Company’s share option activity under all the option plans (in US$, except for shares):


	Number of Shares (Note i)			Weighted Average Exercise Price (Note i)		Weighted Average Remaining Contractual Life (Years) (Note i)		Aggregate Intrinsic Value (in millions) (Note i)
Outstanding at December 31, 2019		54,368,896			22.21		5.63		679

Granted		8,921,248			15.87
Exercised		(3,495,960	)		6.96
Forfeited		(2,210,328	)		12.00

Outstanding at December 31, 2020		57,583,856			22.55		5.16		704

Granted		15,404,097			18.46
Exercised		(5,106,035	)		9.32
Forfeited		(1,800,799	)		7.9

Outstanding at December 31, 2021		66,081,119			23.02		5.42		398

Granted		17,311,708			14.15
Exercised		(4,493,648	)		5.70
Forfeited		(1,424,477	)		10.80

Outstanding at December 31, 2022		77,474,702			22.26		5.01		995

Vested and expect to vest at December 31, 2022		74,652,470			22.43		4.96		948

Exercisable at December 31, 2022		42,196,796			25.97		3.83		410

Note i: The number of restricted shares and weighted average exercise price have been retrospectively adjusted for the Share Subdivision that became effective on March 18, 2021 (Note 2 and Note 20)

Assumptions of Black-Scholes pricing model


	2020	2021	2022
Risk-free interest rate	0.21%-1.32%	0.21%-1.18%	1.55%-4.45%
Expected life (years)	4 – 5	4 – 5	4 – 5
Expected dividend yield	0%	0%	0%
Volatility	40%-43%	39%-43%	41%-49%
Fair value of options at grant date per share	from US$8.12 to US$31.99	from US$8.61 to US$39.17	from US$7.44 to US$24.58

Schedule of restricted share activities under all incentive plans

The following table summarizes the Company’s RSUs activities under all incentive plans (in US$, except for shares):


	Number of Shares (Note i)			Weighted average grant date fair value (US$) (Note i)
Restricted shares

Unvested at December 31, 2019		4,008,768			37.94

Granted		550,888			28.49
Vested		(3,439,944	)		37.53
Forfeited		(185,200	)		38.42

Unvested at December 31, 2020		934,512			33.79

Granted		255,004			31.35
Vested		(215,484	)		37.26
Forfeited		(104,412	)		30.12

Unvested at December 31, 2021		869,620			32.65

Granted		255,000			24.67
Vested		(243,625	)		36.15
Forfeited		(129,489	)		33.92

Unvested at December 31, 2022		751,506			28.59

Note i: The number of restricted shares and weighted average grant date fair value have been retrospectively adjusted for the Share Subdivision that became effective on March 18, 2021 (Note 2 and Note 20).

Summary of components of other income


	2020			2021			2022
Gain on deconsolidation of subsidiaries (Note 18)		1,091			—			—
Government grants		601			550			618
Foreign exchange (losses)/gains		(40	)		1			(69	)
(Loss)/gain on disposal of long-term investments (Note 7)		(602	)		63			23
Gain from the fair value remeasurement upon the discontinuance of the equity method of the investment(a)		—			—			1,135
Fair value changes of equity securities investments and Exchangeable Senior Notes		(612	)		(170	)		1,338
Impairments of long-term investments(b)		(905	)		(96	)		(949	)
Others		194			25			(81	)

Total		(273	)		373			2,015

(a)

In 2022, an equity method investee of the Company completed an initial public offering, upon which the Company lost significant influence over the investee due to its reduced voting rights and changes in the investee’s governing documents. Consequently, the Company discontinued the equity method accounting and the investment was classified as an equity security investment with readily determinable fair value. Immediately after discontinuing the equity method, the Company recognized a gain from the remeasurement of the investment at fair value with amount of

RMB1.1

illion

(b)

In 2022, the Company recorded

RMB906

million impairment loss for certain redeemable preferred shares investments which is accounted for as available-for-sale debt security (Note 7).