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Prepayments and Other Current Assets
12 Months Ended
Dec. 31, 2020
Prepayments and Other Current Assets  
Prepayments and Other Current Assets
4.
Prepayments and Other Current Assets
The following is a summary of prepayments and other current assets:
 
    
December 31,
2018
    
December 31,
2019
    
December 31,
2020
 
    
RMB in thousands
 
Prepayments for revenue sharing cost*
     462,883        542,971        782,518  
Prepayments for content cost
     130,619        226,500        195,175  
Prepayments for sales tax
     80,487        157,244        202,025  
Interest income receivable
     26,812        93,688        6,396  
Inventories, net
     55,032        69,914        160,006  
Loans to investees or ongoing investments
     84,075        64,463        187,672  
Prepayments of marketing and other operational expenses
     33,198        53,246        64,068  
Prepayments /receivables relating to jointly invested content
     44,951        43,838        28,664  
Deposits
     20,447        26,301        51,661  
Prepayments to inventory suppliers
     12,901        9,058        19,970  
Others
     39,446        28,678        67,632  
    
 
 
    
 
 
    
 
 
 
Total
  
 
990,851
 
  
 
1,315,901
 
  
 
1,765,787
 
    
 
 
    
 
 
    
 
 
 
 
*
App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheets as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide
on-going
services to
end-users.
The related direct and incremental platform commissions as well as game developers’ licensing fees are deferred and reported in “Prepayments and Other Current Assets” on the consolidated balance sheets.