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Related Party Transactions
12 Months Ended
Dec. 31, 2017
Related Party Transactions
15. RELATED PARTY TRANSACTIONS

a) Principal related parties

 

Name of related parties

  

Relationship with the Group

Tencent and its subsidiaries (“Tencent Group”)

  

Entities controlled by a shareholder of the Group

Kingsoft and its subsidiaries (“Kingsoft Group”)

  

Entities controlled by a shareholder of the Group

Matrix Partners China IV Hong Kong Limited (“Matrix Partners”)

  

Entities controlled by a director of the Group

Xiaomi and its subsidiaries (“Xiaomi Group”)

  

Entities controlled by a director of the Group

Beijing OrionStar Technology Co., Ltd. (“Beijing OrionStar”)

  

Entities controlled by a director of the Group

Baomi Technology

  

Former equity investees (note 3)

b) In addition to the transactions detailed elsewhere in these financial statements, the Group had the following material related party transactions for the years ended December 31, 2015, 2016 and 2017:

 

           For the years ended December 31,  
           2015      2016      2017  
           RMB      RMB      RMB      US$  

Corporate, technical support and leasing services received from:

     (i           

Kingsoft Group

       7,588        26,613        28,596        4,395  

Tencent Group

       —          —          17,399        2,674  

Licensing fees paid to:

     (ii           

Kingsoft Group

       9,129        12,162        8,435        1,296  

Promotion services received from:

     (iii           

Kingsoft Group

       28,231        22,599        8,142        1,251  

Tencent Group

       41,599        39,069        30,695        4,718  

Xiaomi Group

       47,826        59,377        61,042        9,382  

Promotion services provided to:

     (iv           

Tencent Group

       293,510        153,650        58,669        9,017  

Technical support services provided to:

     (v           

Beijing OrionStar

       —          —          10,920        1,678  

Capital injection provided to:

             

Beijing OrionStar (note 4)

       —          —          264,768        40,694  

Capital injection received from:

             

Matrix Partners (note 19)

       —          —          151,419        23,273  

Sales of products to:

             

Baomi Technology

     (vi     12,701        —          —          —    

 

(i) In 2015, 2016 and 2017, the Group entered into agreements with Kingsoft Group and Tencent Group, pursuant to which these entities provided services including corporate, technology support and leasing services to the Group.
(ii)

On January 1, 2009, Kingsoft Japan entered into an exclusive licensing agreement with Kingsoft Group, pursuant to which Kingsoft Group granted Kingsoft Japan the exclusive right to use certain office software within Japan and to sub-license such software to original equipment manufacturers in Japan solely for their self-use and sale of products and services.

(iii) In 2015, 2016 and 2017, the Group entered into agreements with Kingsoft Group, Tencent Group and Xiaomi Group for promotion services ranging from one to two years.
(iv) In 2015, 2016 and 2017, the Group entered into a series of agreements with Tencent Group to provide online advertising services.
(v) In 2017, the Group entered into a series of agreements with Beijing OrionStar to provide technical support services.
(vi) In 2015, the Group entered into a series of agreements with Baomi Technology to sell purifiers.

c) The balances between the Group and its related parties as of December 31, 2016 and 2017 are listed below:

(1) Amount due from related parties

 

     As of December 31,  
     2016      2017  
     RMB      RMB      US$  

Kingsoft Group

     15,262        16,227        2,494  

Xiaomi Group

     7,694        13,395        2,059  

Tencent Group

     14,412        11,598        1,782  

Other related parties (i)

     6,910        18,048        2,775  
  

 

 

    

 

 

    

 

 

 

Total

     44,278        59,268        9,110  
  

 

 

    

 

 

    

 

 

 

(2) Amount due to related parties

 

     As of December 31,  
     2016      2017  
     RMB      RMB      US$  

Kingsoft Group

     26,247        16,146        2,482  

Xiaomi Group

     11,638        26,072        4,007  

Tencent Group

     26,421        36,591        5,624  

Other related parties (i)

     6,861        3,001        461  
  

 

 

    

 

 

    

 

 

 

Total

     71,167        81,810        12,574  
  

 

 

    

 

 

    

 

 

 

All the balances with related parties as of December 31, 2016 and 2017 were unsecured and repayable on demand. Nil and RMB8,282 allowance for doubtful accounts was recognized for the amount due from related parties for the years ended December 31, 2015 and 2016. RMB7,312 (US$1,124) allowance for doubtful accounts was reversed for the amount due from related parties for the years ended December 31, 2017.

 

(i) The balances mainly represent services received from or provided to the Group’s equity investees and entities controlled by a director of the Group in the ordinary course of business.