Prepayments and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2022

Prepayments and Other Current Assets

Summary of prepayments and other current assets


	December 31, 2021		December 31, 2022

	RMB in thousands
Prepayments for revenue sharing cost*		1,117,431		559,178
Inventories, net		455,767		437,451
Prepayments for sales tax		523,282		435,373
Prepayments of marketing and other operational expenses		181,764		125,685
Interest income receivable		10,927		79,641
Prepayments to inventory suppliers		94,746		76,598
Prepayments for content cost		73,496		62,564
Deposits		106,555		31,461
Loans to investees or ongoing investments		68,681		25,458
Prepayments/ receivables relating to jointly invested content		36,246		22,901
Others		138,153		94,263

Total		2,807,048		1,950,573

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.