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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
¥ in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
CNY (¥)
¥ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
CNY (¥)
¥ / shares
shares
Dec. 31, 2016
CNY (¥)
¥ / shares
shares
Net revenues        
Other revenues ¥ 885,890 $ 128,847 ¥ 923,838 ¥ 1,176,823
Total net revenues 15,763,557 2,292,714 11,594,792 8,204,050
Cost of revenues [2] (10,017,134) [1] (1,456,932) (7,026,402) [3] (5,103,430) [4]
Gross profit 5,746,423 835,782 4,568,390 3,100,620
Operating expenses        
Research and development expenses [2] (1,192,052) [1] (173,377) (781,886) [3] (675,230) [4]
Sales and marketing expenses [2] (1,149,316) [1] (167,161) (691,281) [3] (387,268) [4]
General and administrative expenses [2] (883,225) [1] (128,460) (544,641) [3] (482,437) [4]
Goodwill impairment 0 [2] 0 [2] (2,527) (17,665) [2],[4]
Total operating expenses (3,224,593) (468,998) (2,020,335) (1,562,600)
Gain on deconsolidation and disposal of subsidiaries 0 0 37,989 103,960
Other income 117,860 17,142 113,187 129,504
Operating income 2,639,690 383,926 2,699,231 1,771,484
Interest expense (8,616) (1,253) (32,122) (81,085)
Interest income and investment income 485,552 70,621 180,384 67,193
Foreign currency exchange gains (losses), net (514) (75) (2,176) 1,158
Gain on deemed disposal and disposal of investments 16,178 2,353 45,861 25,061
Gain on fair value changes of investments 1,689,404 245,714 0 0
Fair value loss on derivative liabilities (2,285,223) (332,372) 0 0
Other non-operating expenses (2,000) (291) 0 0
Income before income tax expenses 2,534,471 368,623 2,891,178 1,783,811
Income tax expenses (477,707) (69,480) (415,811) (280,514)
Income before share of income in equity method investments, net of income taxes 2,056,764 299,143 2,475,367 1,503,297
Share of income in equity method investments, net of income taxes 58,933 8,571 33,024 8,279
Net income 2,115,697 307,714 2,508,391 1,511,576
Less: Net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified non-controlling interest shareholders (93,310) (13,571) (4,532) (12,342)
Net income attributable to controlling interest of the Company 2,209,007 321,285 2,512,923 1,523,918
Less: Accretion of subsidiaries' redeemable convertible preferred shares to redemption value 73,159 10,641 19,688 0
Deemed dividend to subsidiary's Series A preferred shareholders 489,284 71,163 0 0
Cumulative dividend on subsidiary's Series A Preferred Shares 4,606 669 0 0
Net income attributable to common shareholders of the Company 1,641,958 238,812 2,493,235 1,523,918
Other comprehensive income (loss):        
Unrealized gain (loss) of available-for-sale securities, net of nil tax 0 0 (41,150) 134,768
Foreign currency translation adjustments, net of nil tax 434,080 63,134 (61,513) (5,317)
Comprehensive income attributable to the common shareholders of YY Inc. ¥ 2,076,038 $ 301,946 ¥ 2,390,572 ¥ 1,653,369
Net income per common share        
-Basic (in CNY/dollars per share) | (per share) [5] ¥ 1.28 $ 0.19 ¥ 2.10 ¥ 1.35
-Diluted (in CNY/dollars per share) | (per share) [5] ¥ 1.27 $ 0.18 ¥ 2.07 ¥ 1.32
Weighted average number of common shares used in calculating net income per common share        
-Basic (in shares) [5] 1,280,847,795 1,280,847,795 1,186,460,144 1,127,343,312
-Diluted (in shares) [5] 1,294,089,406 1,294,089,406 1,216,637,741 1,216,111,329
ADSs [Member]        
Net income per common share        
-Basic (in CNY/dollars per share) | (per share) [5] ¥ 25.64 $ 3.73 ¥ 42.03 ¥ 27.04
-Diluted (in CNY/dollars per share) | (per share) [5] ¥ 25.38 $ 3.69 ¥ 41.33 ¥ 26.40
Weighted average number of common shares used in calculating net income per common share        
-Basic (in shares) [5] 64,042,390 64,042,390 59,323,007 56,367,166
-Diluted (in shares) [5] 64,704,470 64,704,470 60,831,887 60,805,566
Live streaming [Member]        
Net revenues        
Total net revenues ¥ 14,877,667 $ 2,163,867 ¥ 10,670,954 ¥ 7,027,227
[1] Share-based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya Total RMB RMB RMB Cost of revenues 63,867 10,472 74,339 Research and development expenses 194,530 30,643 225,173 Sales and marketing expenses 3,891 1,832 5,723 General and administrative expenses 159,042 183,748 342,790
[2] Share-based compensation was allocated in cost of revenues and operating expenses as follows:RMB RMB RMB US$ Cost of revenues 15,894 42,759 74,339 10,812 Research and development expenses 78,816 122,348 225,173 32,750 Sales and marketing expenses 3,107 4,417 5,723 832 General and administrative expenses 59,469 88,137 342,790 49,857
[3] Share-based compensation was allocated in cost of revenues and operating expenses as follows: YY Live Huya Total RMB RMB RMB Cost of revenues 39,882 2,877 42,759 Research and development expenses 113,174 9,174 122,348 Sales and marketing expenses 3,626 791 4,417 General and administrative expenses 60,871 27,266 88,137
[4] 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
[5] Each ADS represents 20 common shares.