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Segment Reporting | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Segment Reporting |
29. | Segment Reporting
Prior to 2015, the Group’s internal reporting to the CODM had not distinguish cost and expenses among segments. Hence, the Group had only one operating segment prior to 2015. Starting from the first quarter of 2015, in order to better evaluate the Group’s business performance and better allocate resources the CODM began to review YY IVAS and others, Huya broadcasting, and 100 Education separately. In June 2016, the Group revamped the branding from YY IVAS to YY Live. Therefore, the segment of “YY IVAS and others” was renamed as “YY Live”. For the year ended December 31, 2015 and 2014, net revenues of “YY IVAS” and “others” were presented to the CODM’s review separately. Following the revamp of the branding, net revenues of “YY Live” as a whole are presented to the CODM’s review. Segment presentation for the year ended December 31, 2015 and 2014 have been updated to be consistent with the segment presentation for the year ended December 31, 2016. The Company revamped its internal organization and one sub-business stream previously presented and reviewed under YY Live was changed to be presented and reviewed under Huya from the first quarter of 2017. Segment information for the three years ended December 31, 2014, 2015 and 2016 has been restated accordingly. The CODM assesses the performance of the operating segments mainly based on net revenues, gross profit/loss, operating income/loss of each reporting segment. Net revenues, gross profit/loss and operating income/loss of YY Live, Huya and 100 education are presented for the CODM’s review separately. Segmental information for prior periods was prepared and presented on the same basis as 2016 for comparative information purpose. As the Group’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented. The Group currently does not allocate assets to all of its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. The following table presents summary information by segment: For the year ended December 31, 2016:
|  | YY Live |  | Huya |  | 100 Education |  | Total |
|  | RMB |  | RMB |  | RMB |  | RMB |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Live streaming |  |  | 6,235,249 |  |  | 791,978 |  |  | - |  |  | 7,027,227 |
Online games |  |  | 634,325 |  |  | - |  |  | - |  |  | 634,325 |
Membership |  |  | 284,860 |  |  | - |  |  | - |  |  | 284,860 |
Others |  |  | 91,985 |  |  | 4,926 |  |  | 160,727 |  |  | 257,638 |
Total net revenues |  |  | 7,246,419 |  |  | 796,904 |  |  | 160,727 |  |  | 8,204,050 |
Cost of revenues(1) |  |  | (3,900,814) |  |  | (1,094,644) |  |  | (107,972) |  |  | (5,103,430) |
Gross profit / (loss) |  |  | 3,345,605 |  |  | (297,740) |  |  | 52,755 |  |  | 3,100,620 |
Operating expenses(1) |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development expenses |  |  | (456,375) |  |  | (188,334) |  |  | (30,521) |  |  | (675,230) |
Sales and marketing expenses |  |  | (259,040) |  |  | (68,746) |  |  | (59,482) |  |  | (387,268) |
General and administrative expenses |  |  | (375,958) |  |  | (71,325) |  |  | (35,154) |  |  | (482,437) |
Goodwill impairment |  |  | (3,861) |  |  | - |  |  | (13,804) |  |  | (17,665) |
Fair value change of contingent consideration |  |  | - |  |  | - |  |  | - |  |  | - |
Total operating expenses |  |  | (1,095,234) |  |  | (328,405) |  |  | (138,961) |  |  | (1,562,600) |
Gain on deconsolidation and disposal of subsidiaries |  |  | 103,960 |  |  | - |  |  | - |  |  | 103,960 |
Other income |  |  | 129,504 |  |  | - |  |  | - |  |  | 129,504 |
Operating income / (loss) |  |  | 2,483,835 |  |  | (626,145) |  |  | (86,206) |  |  | 1,771,484 |
(1) Share based compensation was allocated in cost of revenues and operating expenses as follows:
|  | YY Live |  | Huya |  | 100 Education |  | Total |
|  | RMB |  | RMB |  | RMB |  | RMB |
Cost of revenues |  |  | 9,893 |  |  | 5,677 |  |  | 324 |  |  | 15,894 |
Research and development expenses |  |  | 53,085 |  |  | 19,538 |  |  | 6,193 |  |  | 78,816 |
Sales and marketing expenses |  |  | 2,781 |  |  | 326 |  |  | - |  |  | 3,107 |
General and administrative expenses |  |  | 19,523 |  |  | 26,557 |  |  | 13,389 |  |  | 59,469 |
Share based compensation expenses |  |  | 85,282 |  |  | 52,098 |  |  | 19,906 |  |  | 157,286 |
For the year ended December 31, 2015:
|  | YY Live |  | Huya |  | 100 Education |  | Total |
|  | RMB |  | RMB |  | RMB |  | RMB |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Live streaming |  |  | 4,183,533 |  |  | 356,324 |  |  | - |  |  | 4,539,857 |
Online games |  |  | 771,882 |  |  | - |  |  | - |  |  | 771,882 |
Membership |  |  | 291,310 |  |  | - |  |  | - |  |  | 291,310 |
Others |  |  | 170,426 |  |  | - |  |  | 123,774 |  |  | 294,200 |
Total net revenues |  |  | 5,417,151 |  |  | 356,324 |  |  | 123,774 |  |  | 5,897,249 |
Cost of revenues(1) |  |  | (2,784,637) |  |  | (668,493) |  |  | (126,614) |  |  | (3,579,744) |
Gross profit / (loss) |  |  | 2,632,514 |  |  | (312,169) |  |  | (2,840) |  |  | 2,317,505 |
Operating expenses(1) |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development expenses |  |  | (359,598) |  |  | (152,351) |  |  | (36,850) |  |  | (548,799) |
Sales and marketing expenses |  |  | (229,295) |  |  | (48,303) |  |  | (35,272) |  |  | (312,870) |
General and administrative expenses |  |  | (233,086) |  |  | (33,318) |  |  | (92,070) |  |  | (358,474) |
Goodwill impairment |  |  | (128,035) |  |  | - |  |  | (182,089) |  |  | (310,124) |
Fair value change of contingent consideration |  |  | 107,306 |  |  | - |  |  | 185,165 |  |  | 292,471 |
Total operating expenses |  |  | (842,708) |  |  | (233,972) |  |  | (161,116) |  |  | (1,237,796) |
Other income |  |  | 82,300 |  |  | - |  |  | - |  |  | 82,300 |
Operating income / (loss) |  |  | 1,872,106 |  |  | (546,141) |  |  | (163,956) |  |  | 1,162,009 |
(1) Share based compensation was allocated in cost of revenues and operating expenses as follows:
|  | YY Live |  | Huya |  | 100 Education |  | Total |
|  | RMB |  | RMB |  | RMB |  | RMB |
Cost of revenues |  |  | 20,932 |  |  | 2,642 |  |  | 389 |  |  | 23,963 |
Research and development expenses |  |  | 52,395 |  |  | 11,759 |  |  | 6,797 |  |  | 70,951 |
Sales and marketing expenses |  |  | 2,628 |  |  | 655 |  |  | - |  |  | 3,283 |
General and administrative expenses |  |  | 49,137 |  |  | 5,425 |  |  | 32,613 |  |  | 87,175 |
Share based compensation expenses |  |  | 125,092 |  |  | 20,481 |  |  | 39,799 |  |  | 185,372 |
For the year ended December 31, 2014:
|  | YY Live |  | Huya |  | 100 Education |  | Total |
|  | RMB |  | RMB |  | RMB |  | RMB |
Net revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Live streaming |  |  | 2,322,008 |  |  | 153,371 |  |  | - |  |  | 2,475,379 |
Online games |  |  | 811,699 |  |  | - |  |  | - |  |  | 811,699 |
Membership |  |  | 205,199 |  |  | - |  |  | - |  |  | 205,199 |
Others |  |  | 185,141 |  |  | - |  |  | 950 |  |  | 186,091 |
Total net revenues |  |  | 3,524,047 |  |  | 153,371 |  |  | 950 |  |  | 3,678,368 |
Cost of revenues(1) |  |  | (1,576,347) |  |  | (258,740) |  |  | (14,062) |  |  | (1,849,149) |
Gross profit / (loss) |  |  | 1,947,700 |  |  | (105,369) |  |  | (13,112) |  |  | 1,829,219 |
Operating expenses(1) |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development expenses |  |  | (287,547) |  |  | (122,570) |  |  | (21,071) |  |  | (431,188) |
Sales and marketing expenses |  |  | (96,159) |  |  | (6,223) |  |  | (145) |  |  | (102,527) |
General and administrative expenses |  |  | (191,288) |  |  | (30,201) |  |  | (1,530) |  |  | (223,019) |
Total operating expenses |  |  | (574,994) |  |  | (158,994) |  |  | (22,746) |  |  | (756,734) |
Other income |  |  | 6,319 |  |  | - |  |  | - |  |  | 6,319 |
Operating income / (loss) |  |  | 1,379,025 |  |  | (264,363) |  |  | (35,858) |  |  | 1,078,804 |
(1) Share based compensation was allocated in cost of revenues and operating expenses as follows:
|  | YY Live |  | Huya |  | 100 Education |  | Total |
|  | RMB |  | RMB |  | RMB |  | RMB |
Cost of revenues |  |  | 16,264 |  |  | 1,473 |  |  | 300 |  |  | 18,037 |
Research and development expenses |  |  | 37,833 |  |  | 11,377 |  |  | 4,931 |  |  | 54,141 |
Sales and marketing expenses |  |  | 2,581 |  |  | 226 |  |  | - |  |  | 2,807 |
General and administrative expenses |  |  | 53,111 |  |  | 6,487 |  |  | 49 |  |  | 59,647 |
Share based compensation expenses |  |  | 109,789 |  |  | 19,563 |  |  | 5,280 |  |  | 134,632 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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