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Segment Reporting
 12 Months Ended
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