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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 20-F

(Mark One)

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2020.

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report. . . . . . . . . . . . . . . . . . . . . . . .

For the transition period from                 to     

Commission file number: 001-38431

iQIYI, Inc.

(Exact name of Registrant as specified in its charter)

N/A

(Translation of Registrant’s name into English)

Cayman Islands

(Jurisdiction of incorporation or organization)

9/F, iQIYI Innovation Building

No. 2 Haidian North First Street, Haidian District

Beijing 100080, People’s Republic of China

(Address of principal executive offices)

Xiaodong Wang, Chief Financial Officer

E-mail: wangxiaodong@qiyi.com

9/F, iQIYI Innovation Building

No. 2 Haidian North First Street, Haidian District

Beijing 100080, People’s Republic of China

Telephone: +86 10-6267-7171

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

American Depositary Shares, each representing seven Class A
ordinary shares par value US$0.00001 per share

 

IQ

 

The Nasdaq Stock Market LLC

(The Nasdaq Global Select Market)

Class A ordinary shares,
par value US$0.00001 per share*

 

 

 

The Nasdaq Stock Market LLC

(The Nasdaq Global Select Market)

 

(1)

*Not for trading, but only in connection with the listing on The Nasdaq Global Select Market of our American depositary shares, each representing seven Class A ordinary shares.

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

As of December 31, 2020, there were 5,486,200,941 ordinary shares outstanding, being the sum of 2,609,809,545 Class A ordinary shares (excluding 275,829,374 Class A ordinary shares issued to our depositary bank for bulk issuance of ADSs reserved for future issuances upon the exercise or vesting of awards under our share incentive plans and 14,880,762 unvested restricted shares issued to certain employees) and 2,876,391,396 Class B ordinary shares.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes No

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “accelerated filer and large accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer

 

Accelerated filer

 

Non-accelerated filer

 

Emerging growth company

 

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.

†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  

Indicate by check mark which basis of accounting the registrant has been to prepare the financial statements included in this filing:

 

U.S. GAAP

 

International Financial Reporting Standards as issued

 

Other

 

 

by the International Accounting Standards Board

 

 

 

If “other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No

 

 

 

 


 

 

TABLE OF CONTENTS

 

INTRODUCTION

1

 

 

FORWARD-LOOKING INFORMATION

2

 

 

PART I

 

 

 

 

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

3

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

3

ITEM 3.

KEY INFORMATION

3

ITEM 4.

INFORMATION ON THE COMPANY

44

ITEM 4.A.

UNRESOLVED STAFF COMMENTS

70

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

70

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

90

ITEM 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

99

ITEM 8.

FINANCIAL INFORMATION

102

ITEM 9.

THE OFFER AND LISTING

103

ITEM 10.

ADDITIONAL INFORMATION

104

ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

116

ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

117

 

 

 

PART II

 

 

 

 

ITEM 13.

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

119

ITEM 14.

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

119

ITEM 15.

CONTROLS AND PROCEDURES

119

ITEM 16.A.

AUDIT COMMITTEE FINANCIAL EXPERT

120

ITEM 16.B.

CODE OF ETHICS

120

ITEM 16.C.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

120

ITEM 16.D.

EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

121

ITEM 16.E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

121

ITEM 16.F.

CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

121

ITEM 16.G.

CORPORATE GOVERNANCE

121

ITEM 16.H.

MINE SAFETY DISCLOSURE

121

 

 

 

PART III

 

 

 

 

ITEM 17.

FINANCIAL STATEMENTS

122

ITEM 18.

FINANCIAL STATEMENTS

122

ITEM 19.

EXHIBITS

123

 

 

 

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Table of Contents

 

 

INTRODUCTION

Unless otherwise indicated and except where the context otherwise requires, references in this annual report to:

 

“ADSs” refers to our American depositary shares, each of which represents seven Class A ordinary shares;

 

“AI” refers to artificial intelligence;

 

“Baidu” refers to Baidu, Inc., our parent company and controlling shareholder;

 

“China” or “PRC” refers to the People’s Republic of China, excluding, for the purpose of this annual report only, Taiwan, Hong Kong, and Macau;

 

“IP” refers to intellectual property;

 

“IT” refers to information technology;

 

“mobile DAUs,” for our iQIYI platform, refers to the number of unique mobile devices that have accessed our platform through our iQIYI mobile app at least once during a day. Our mobile DAUs are calculated using internal company data that has not been independently verified, and we treat each distinguishable device as a separate user for purposes of calculating mobile DAUs, although it is possible that some people may use more than one mobile device and multiple people may share one mobile device to access our platform;

 

“mobile MAUs,” for our iQIYI platform, refers to the number of unique mobile devices that have accessed our platform through our iQIYI mobile app at least once during a month. Our mobile MAUs are calculated using internal company data that has not been independently verified, and we treat each distinguishable device as a separate user for purposes of calculating mobile MAUs, although it is possible that some people may use more than one mobile device and multiple people may share one mobile device to access our platform;

 

“RMB” and “Renminbi” refer to the legal currency of China;

 

“shares” or “ordinary shares” refers to our Class A and Class B ordinary shares, par value $0.00001 per share;

 

“subscribing members,” refers to the individuals who purchased our monthly, quarterly or annual membership packages, including individuals with trial membership, and excluding individuals who pay for video on-demand services or stand-alone packages for sports paid content, online literature or online games; subscribing members are calculated using the number of unique iQIYI user accounts that have subscribed for the relevant services;

 

“U.S. GAAP” refers to generally accepted accounting principles in the United States;

 

“US$,” “U.S. dollars,” “$,” and “dollars” refer to the legal currency of the United States;

 

“video views” refers to the number of times a video is launched on our platform, regardless of time spent viewing the video;

 

“WAP” refers to wireless application protocol; and

 

“we,” “us,” “our company” and “our” refer to iQIYI, Inc., a Cayman Islands company, and its subsidiaries, and, in the context of describing our operations and combined and consolidated financial information, also include its consolidated affiliated entities in the PRC.

We present our financial results in RMB. We make no representation that any RMB or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or RMB, as the case may be, at any particular rate, or at all. The PRC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of RMB into foreign exchange and through restrictions on foreign trade. This annual report contains translations of certain foreign currency amounts into U.S. dollars for the convenience of the reader. Unless otherwise stated, all translations of Renminbi into U.S. dollars were made at the rate at RMB6.5250 to US$1.00, the exchange rate as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System in effect as of December 31, 2020.

1


Table of Contents

 

FORWARD-LOOKING INFORMATION

This annual report contains forward-looking statements that involve risks and uncertainties. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigations Reform Act of 1995.

You can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include, but are not limited to, statements about:

 

our goals and strategies;

 

our ability to retain and increase the number of users, members and advertising customers, and expand our service offerings;

 

our future business development, financial condition and results of operations;

 

expected changes in our revenues, costs or expenditures;

 

competition in our industry;

 

relevant government policies and regulations relating to our industry;

 

general economic and business conditions globally and in China; and

 

assumptions underlying or related to any of the foregoing.

You should read this annual report and the documents that we refer to in this annual report and have filed as exhibits to this annual report completely and with the understanding that our actual future results may be materially different from what we expect. Other sections of this annual report discuss factors which could adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.

You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in this annual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

 

 

2


Table of Contents

 

 

Part I.

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

Item 3.

Key Information

A.Selected Financial Data

Selected Consolidated Financial Data

The following selected consolidated statements of comprehensive loss data for the years ended December 31, 2018, 2019 and 2020, selected consolidated balance sheet data as of December 31, 2019 and 2020 and selected consolidated cash flows data for the years ended December 31, 2018, 2019 and 2020 have been derived from our audited consolidated financial statements included in this annual report beginning on page F-1. The following selected consolidated statements of comprehensive loss data for the years ended December 31, 2016 and 2017, selected consolidated balance sheet data as of December 31, 2016, 2017 and 2018 and selected consolidated cash flows data for the years ended December 31, 2016 and 2017 have been derived from our audited consolidated financial statements not included in this annual report. Our historical results for any period are not necessarily indicative of results to be expected for any future period.

The selected consolidated financial data should be read in conjunction with, and are qualified in their entirety by reference to, our audited consolidated financial statements and related notes and “Item 5. Operating and Financial Review and Prospects” below. Our consolidated financial statements are prepared and presented in accordance with U.S. GAAP. Starting from January 1, 2018, we adopted a new revenue accounting standard ASC topic 606, Revenue from Contracts with Customers (“ASC 606”), which reclassifies value added taxes (“VAT”) from cost of revenues to net against revenues among other changes. The consolidated statements of comprehensive loss data for the years ended December 31, 2018, 2019 and 2020 presented below have been prepared in accordance with ASC 606, while the consolidated statements of comprehensive loss data for the years ended December 31, 2016 and 2017 presented below have been prepared in accordance with the legacy revenue accounting standard ASC topic 605, Revenue Recognition (“ASC 605”).

3


Table of Contents

 

 

 

 

For the year ended December 31,

 

 

 

2016(1)

 

 

2017(1 )

 

 

2018

 

 

2019

 

 

2020

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(in thousands, except for share and per share data)

 

Selected Consolidated Statements of

   Comprehensive Loss Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

11,237,407

 

 

 

17,378,350

 

 

 

24,989,116

 

 

 

28,993,658

 

 

 

29,707,215

 

 

 

4,552,830

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(3)

 

 

(11,436,595

)

 

 

(17,386,563

)

 

 

(27,132,811

)

 

 

(30,348,342

)

 

 

(27,884,395

)

 

 

(4,273,470

)

Selling, general and

   administrative(3)

 

 

(1,765,824

)

 

 

(2,674,990

)

 

 

(4,167,889

)

 

 

(5,236,007

)

 

 

(5,187,835

)

 

 

(795,070

)

Research and development(3)

 

 

(824,482

)

 

 

(1,269,806

)

 

 

(1,994,652

)

 

 

(2,667,146

)

 

 

(2,675,494

)

 

 

(410,037

)

Total operating costs and expenses

 

 

(14,026,901

)

 

 

(21,331,359

)

 

 

(33,295,352

)

 

 

(38,251,495

)

 

 

(35,747,724

)

 

 

(5,478,577

)

Operating loss

 

 

(2,789,494

)

 

 

(3,953,009

)

 

 

(8,306,236

)

 

 

(9,257,837

)

 

 

(6,040,509

)

 

 

(925,747

)

Total other (expenses)/income, net

 

 

(271,440

)

 

 

208,512

 

 

 

(676,194

)

 

 

(967,050

)

 

 

(943,368

)

 

 

(144,578

)

Loss before income taxes

 

 

(3,060,934

)

 

 

(3,744,497

)

 

 

(8,982,430

)

 

 

(10,224,887

)

 

 

(6,983,877

)

 

 

(1,070,325

)

Income tax (expense)/benefit

 

 

(13,088

)

 

 

7,565

 

 

 

(78,801

)

 

 

(51,852

)

 

 

(23,276

)

 

 

(3,567

)

Net loss

 

 

(3,074,022

)

 

 

(3,736,932

)

 

 

(9,061,231

)

 

 

(10,276,739

)

 

 

(7,007,153

)

 

 

(1,073,892

)

Less: Net income attributed to

   non-controlling interests

 

 

 

 

 

 

 

 

48,545

 

 

 

46,590

 

 

 

31,208

 

 

 

4,783

 

Accretion of redeemable

   convertible preferred shares

 

 

(4,874,739

)

 

 

5,073,140

 

 

 

(298,990

)

 

 

 

 

 

 

 

 

 

Accretion of redeemable

   noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

(1,542

)

 

 

(7,087

)

 

 

(1,086

)

Extinguishment and reissuance

   of Series B preferred shares

 

 

 

 

 

(363,279

)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income attributable

   to ordinary shareholders

 

 

(7,948,761

)

 

 

972,929

 

 

 

(9,408,766

)

 

 

(10,324,871

)

 

 

(7,045,448

)

 

 

(1,079,761

)

Net (loss)/earnings per ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

(23.20

)

 

 

0.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

(23.20

)

 

 

(1.15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per Class A and

   Class B ordinary share(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

(2.43

)

 

 

(2.02

)

 

 

(1.36

)

 

 

(0.21

)

Diluted

 

 

 

 

 

 

 

 

 

 

(2.43

)

 

 

(2.02

)

 

 

(1.36

)

 

 

(0.21

)

Net loss per ADS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

(17.01

)

 

 

(14.14

)

 

 

(9.52

)

 

 

(1.47

)

Diluted

 

 

 

 

 

 

 

 

 

 

(17.01

)

 

 

(14.14

)

 

 

(9.52

)

 

 

(1.47

)

Shares used in net (loss)/earnings per

   ordinary share computation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

342,548,237

 

 

 

342,548,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

342,548,237

 

 

 

3,243,147,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in net loss per Class A and

   Class B ordinary share computation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

3,867,931,786

 

 

 

5,104,882,400

 

 

 

5,176,180,057

 

 

 

5,176,180,057

 

Diluted

 

 

 

 

 

 

 

 

 

3,867,931,786

 

 

 

5,104,882,400

 

 

 

5,176,180,057

 

 

 

5,176,180,057

 

 

(1)

In accordance with the legacy revenue accounting standard (ASC 605), VAT is presented in cost of revenues rather than net against revenues.

(2)

Our ordinary shares are comprised of Class A ordinary shares and Class B ordinary shares. Each holder of Class A ordinary shares is entitled to one vote per share and each holder of Class B ordinary shares is entitled to ten votes per share on all matters submitted to them for a vote. Class B ordinary shares are convertible at any time by the holder thereof into Class A ordinary shares on a one-for-one basis. As holders of Class A and Class B ordinary shares have the same dividend right and the same participation right in our undistributed earnings, the basic and diluted loss per Class A ordinary share and Class B ordinary share are the same for all the periods presented during which there were two classes of ordinary shares.

4


Table of Contents

 

(3)

Share-based compensation expenses were allocated in operating costs and expenses as follows:

 

 

 

For the year ended December 31,

 

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

 

2020

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(in thousands)

 

Selected Consolidated Statements of

   Comprehensive Loss Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

9,479

 

 

 

34,895

 

 

 

83,351

 

 

 

171,053

 

 

 

201,970

 

 

 

30,953

 

Selling, general and administrative

 

 

30,447

 

 

 

130,994

 

 

 

368,598

 

 

 

675,278

 

 

 

851,416

 

 

 

130,485

 

Research and development

 

 

22,466

 

 

 

67,535

 

 

 

104,262

 

 

 

238,189

 

 

 

316,709

 

 

 

48,538

 

Total

 

 

62,392

 

 

 

233,424

 

 

 

556,211

 

 

 

1,084,520

 

 

 

1,370,095

 

 

 

209,976

 

 

 

 

As of December 31,

 

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

 

2020

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(in thousands)

 

Selected Consolidated Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

964,207

 

 

 

733,010

 

 

 

4,586,405

 

 

 

5,934,742

 

 

 

10,915,282

 

 

 

1,672,840

 

Restricted cash

 

 

 

 

 

 

 

 

2,174,042

 

 

 

974,932

 

 

 

25,230

 

 

 

3,867

 

Short-term investments

 

 

902,978

 

 

 

779,916

 

 

 

6,061,832

 

 

 

4,579,313

 

 

 

3,358,174

 

 

 

514,663

 

Total current assets

 

 

5,154,305

 

 

 

5,700,528

 

 

 

19,853,443

 

 

 

20,272,838

 

 

 

22,290,424

 

 

 

3,416,158

 

Total assets(1)

 

 

13,631,636

 

 

 

20,200,899

 

 

 

44,759,698

 

 

 

44,792,550

 

 

 

48,185,429

 

 

 

7,384,740

 

Total current liabilities(1)

 

 

11,889,853

 

 

 

11,625,612

 

 

 

19,812,356

 

 

 

20,173,166

 

 

 

24,854,578

 

 

 

3,809,131

 

Total liabilities(1)

 

 

11,897,142

 

 

 

11,918,299

 

 

 

26,604,135

 

 

 

35,077,618

 

 

 

38,741,131

 

 

 

5,937,338

 

Total mezzanine equity

 

 

17,039,167

 

 

 

22,601,664

 

 

 

 

 

 

101,542

 

 

 

108,629

 

 

 

16,648

 

Total shareholders’ (deficit)/equity

 

 

(15,304,673

)

 

 

(14,319,064

)

 

 

18,155,563

 

 

 

9,613,390

 

 

 

9,335,669

 

 

 

1,430,754

 

 

Note:

(1)

We adopted Accounting Standards Update (“ASU”) No. 2016-02: Leases on January 1, 2019 using the modified retrospective transition method. Right-of-use assets (“ROU assets”) and lease liabilities (including current and non-current) for operating leases are presented on the face of the consolidated balance sheets as of December 31, 2019 and 2020, while the consolidated balance sheets data as of December 31, 2016, 2017 and 2018 have been prepared in accordance with ASC topic 840, Accounting for Leases (“ASC 840”). For further information, see Note 13 to our consolidated financial statements included elsewhere in this annual report.

We adopted ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials (“ASU 2019-02”on January 1, 2020, using a prospective transition method, which includes the following major changes from previous legacy GAAP that are applicable to us:

 

The content distinction for capitalization of production costs of an episodic television series and production costs of films is removed;

 

We are required to test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements;

 

We shall assess estimates of the use of a film in a film group and account for such changes prospectively;

 

Cash outflows for the costs incurred to obtain rights for both produced and licensed content are required to be reported as operating cash outflows in the statement of cash flows.

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Table of Contents

 

For further information, see Notes 2, 8 and 10 to our consolidated financial statements included elsewhere in this annual report.

The following table presents our selected consolidated cash flows data for the years indicated.

 

 

 

For the year ended December 31,

 

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

 

2020