Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2019

Commission File Number: 001-36222

 

 

Autohome Inc.

 

 

10th Floor Tower B, CEC Plaza

3 Dan Ling Street

Haidian District, Beijing 100080

The People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Autohome Inc.
By:  

/s/ Min Lu

Name:   Min Lu
Title:   Chairman of the Board and Chief Executive Officer

Date: August 7, 2019

[Signature page to Form 6-K]


Exhibit Index

Exhibit 99.1 – Press Release

EX-99.1

Exhibit 99.1

 

LOGO

 

 

Autohome Inc. Announces Unaudited Second Quarter Ended June 30, 2019 Financial Results

Second Quarter Net Revenues Were RMB2.31 Billion, Exceeding the High End of the Company’s Guidance, Representing an Increase of 23.5% Year-over-Year

BEIJING, August 7, 2019 – Autohome Inc. (NYSE: ATHM) (“Autohome” or the “Company”), the leading online destination for automobile consumers in China, today announced its unaudited financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Highlights1

 

   

Net Revenues in the second quarter of 2019 were RMB2,309.0 million ($336.3 million), exceeding the high end of the Company’s original guidance of RMB2,305.0 million ($335.8 million).

 

   

Net Income attributable to Autohome Inc. in the second quarter of 2019 was RMB801.9 million ($116.8 million), compared to RMB691.6 million for the corresponding period of 2018.

 

   

Mobile Traffic Leadership Continues: In June 2019, the total number of average daily active users who accessed the Company’s mobile websites, primary application and mini-apps reached 37.8 million, representing an increase of 48% compared to June 2018, and further solidifying the Company’s dominant position in the auto vertical sector in China.

 

   

818 Global Super Auto Show: In an effort to support OEMs and dealers and maintain long- term partnership with them, starting this August, the Company has launched various offline activities and online auto show events for car owners, auto fans and industry experts in China. In particular, the Company worked with top producers from Hunan TV to launch the first-ever auto-themed gala on August 18, 2019 (the “818 Global Super Auto Show”). By the end of July, more than 80 auto brands and over 2,400 dealers have signed up for the event.

Mr. Min Lu, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, “I’m pleased to report a solid quarter with total revenue managing to increase by 23.5% year-over-year, despite the continuous decline in new car sales. During the quarter, we strove to expand content offerings while continuing to improve the user experience through a major upgrade of the Autohome App. On the product front, we plan to extend our data services to serve the R&D department of OEMs, and further enable dealer partners through AI-powered new data products. With all the aforementioned progress, we are confident to continue to drive our growth and generate returns for our shareholders over the long-term.”

 

 

1 

The reporting currency of the Company is Renminbi (“RMB”). For the convenience of readers, certain amounts throughout the release are presented in US dollars (“$”). Unless otherwise noted, all conversions from RMB to US$ are translated at the noon buying rate of US$1.00 to RMB6.8650 on June 28, 2019 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

 

1


Mr. Jun Zou, Chief Financial Officer of Autohome, added, “In the second quarter, we maintained the solid growth momentum in our core business. Our new initiatives once again picked up steam and gained positive market recognition. In response to the prolonged sales decline in the auto sector, we proactively stepped up our efforts in supporting OEMs/dealers through initiatives such as the “818 Global Super Auto Show”. We believe such efforts will bode well with our strategy and benefit to the long-term relationship with our partners.”

Overview of Key Financial Results for the Second Quarter 2019

Key Financial Results

 

(In RMB Millions except for per share data)

   2Q2018      2Q2019      % Change  

Net Revenues

     1,868.9        2,309.0        23.5

Net Income attributable to Autohome Inc.

     691.6        801.9        15.9

Adjusted Net Income attributable to Autohome Inc.2 (Non-GAAP)

     744.3        855.4        14.9

Diluted Earnings Per Share3

     5.79        6.70        15.7

Unaudited Second Quarter 2019 Financial Results

Net Revenues

Net revenues in the second quarter of 2019 were RMB2,309.0 million ($336.3 million) compared to RMB1,868.9 million in the corresponding period of 2018.

 

   

Media services revenues increased by 10.5% to RMB1,028.3 million ($149.8 million) from RMB930.2 million in the corresponding period of 2018. The increase was mainly attributable to an increase in average revenue per automaker advertiser as automakers continued to allocate a greater portion of their advertising budgets to Autohome, which provides an increasingly diversified and optimized product portfolio.

 

   

Leads generation services revenues increased by 20.1% to RMB888.8 million ($129.5 million) from RMB740.0 million in the corresponding period of 2018. The increase was primarily attributable to the increase in average revenue per paying dealer.

 

   

Online marketplace and others revenues increased by 97.2% to RMB391.9 million ($57.1 million) from RMB198.7 million in the corresponding period of 2018. This increase was primarily attributable to the increased contribution from data products and auto-financing businesses.

 

 

2 

Adjusted net income attributable to Autohome Inc. is defined as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. For more information on this and other non-GAAP financial measures, please see the section captioned “Use of Non-GAAP Financial Measures” and the tables captioned “Reconciliations of Non-GAAP and GAAP Results” set forth at the end of this release.

3 

Each ordinary share equals one ADS.

 

2


Cost of Revenues

Cost of revenues were RMB263.6 million ($38.4 million) compared to RMB208.7 million in the corresponding period of 2018. In addition, cost of revenues included share-based compensation expenses of RMB4.1 million ($0.6 million) during the second quarter of 2019, compared to RMB7.1 million for the corresponding period of 2018.

Operating Expenses

Operating expenses were RMB1,335.3 million ($194.5 million) in the second quarter of 2019, compared to RMB987.5 million in the corresponding period of 2018. The increase was mainly due to increases in sales and marketing expenses and product development expenses, as the Company continued to invest in future growth opportunities.

 

   

Sales and marketing expenses were RMB892.9 million ($130.1 million) in the second quarter of 2019, compared to RMB588.0 million in the corresponding period of 2018. The increase was primarily due to the increased offline execution expenses to support automakers and dealers. Sales and marketing expenses for the second quarter of 2019 included share-based compensation expenses of RMB12.9 million ($1.9 million), compared to RMB13.9 million in the corresponding period of 2018.

 

   

General and administrative expenses were RMB81.8 million ($11.9 million) in the second quarter of 2019, compared to RMB86.4 million in the corresponding period of 2018. General and administrative expenses for the second quarter of 2019 included share-based compensation expenses of RMB15.2 million ($2.2 million), compared to RMB15.7 million in the corresponding period of 2018.

 

   

Product development expenses were RMB360.6 million ($52.5 million) in the second quarter of 2019 compared to RMB313.1 million in the corresponding period of 2018. The increase was primarily due to an increase in staff cost related to product development. Product development expenses for the second quarter of 2019 included share-based compensation expenses of RMB20.2 million ($2.9 million), compared to RMB14.9 million in the corresponding period of 2018.

Operating Profit

Operating profit was RMB835.3 million ($121.7million) in the second quarter of 2019, compared to RMB748.4 million in the corresponding period of 2018.

Income tax expense

Income tax expense was RMB147.3 million ($21.5 million) in the second quarter of 2019, compared to RMB145.1 million in the corresponding period of 2018.

Net Income attributable to Autohome Inc. and EPS

Net income attributable to Autohome Inc. was RMB801.9 million ($116.8 million) in the second quarter of 2019, compared to RMB691.6 million in the corresponding period of 2018. Basic and diluted earnings per share/per ADS or “EPS” were RMB6.77 ($0.99) and RMB6.70 ($0.98), respectively, compared to basic and diluted EPS of RMB5.89 and RMB5.79, respectively, in the corresponding period of 2018.

 

3


Adjusted Net Income attributable to Autohome Inc. (Non-GAAP) and Non-GAAP EPS

Adjusted net income attributable to Autohome Inc. (Non-GAAP), defined as net income attributable to Autohome Inc., excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, was RMB855.4 million ($124.6 million) in the second quarter of 2019, compared to RMB744.3 million in the corresponding period of 2018. Non-GAAP basic and diluted EPS were RMB7.22 ($1.05) and RMB7.15 ($1.04), respectively, compared to non-GAAP basic and diluted EPS of RMB6.33 and RMB6.23, respectively, in the corresponding period of 2018.

Balance Sheet and Cash Flow

As of June 30, 2019, the Company had cash and cash equivalents and short-term investments of RMB10.83 billion ($1,577.8 million). Net cash provided by operating activities in the second quarter of 2019 was RMB372.0 million ($54.2 million).

Employees

The Company had 4,223 employees as of June 30, 2019.

Business Outlook

Autohome currently expects to generate net revenues in the range of RMB2,160.0 million ($314.6 million) to RMB2,190.0 million ($319.0 million) in the third quarter of fiscal year 2019, representing a 14.4% to 16.0% year-over-year increase. This forecast reflects the Company’s current and preliminary view on the market and its operating conditions, which are subject to change.

Conference Call Information

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, August 7, 2019 (8:00 PM Beijing Time on the same day).

Dial-in details for the earnings conference call are as follows:

 

United States:   +1-855-824-5644
Hong Kong:   +852-3027-6500
China Domestic:   8009-880-563
United Kingdom:   0800-026-1542
International:   +1 646-722-4977
Passcode:   34234955#

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until August 13, 2019:

 

United States:    +1-646-982-0473
International:    +61-2-8325-2405
Passcode:    319321410#

Additionally, a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn.

 

4


About Autohome Inc.

Autohome Inc. (NYSE: ATHM) is the leading online destination for automobile consumers in China. Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides professionally produced and user-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns. Further, the Company’s dealer subscription and advertising services allow dealers to market their inventory and services through Autohome’s platform, extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. As a transaction-centric company, Autohome operates its “Autohome Mall,” a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its websites and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services. For further information, please visit www.autohome.com.cn.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Among other things, Autohome’s business outlook, Autohome’s strategic and operational plans and quotations from management in this announcement contain forward-looking statements. Autohome may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Autohome’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Autohome’s goals and strategies; Autohome’s future business development, results of operations and financial condition; the expected growth of the online automobile advertising market in China; Autohome’s ability to attract and retain users and advertisers and further enhance its brand recognition; Autohome’s expectations regarding demand for and market acceptance of its products and services; competition in the online automobile advertising industry; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Autohome’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Autohome does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

5


Use of Non-GAAP Financial Measures

To supplement net income presented in accordance with U.S. GAAP, we use Adjusted Net Income attributable to Autohome Inc., Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome Inc. as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. We define Non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome Inc. divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense/(benefit), depreciation expenses of property and equipment and amortization expenses of intangible assets and share-based compensation expenses. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance, in addition to net income prepared in accordance with U.S. GAAP. We believe these non-GAAP financial measures are important to help investors understand our operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess our core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of our results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliation of non-GAAP and GAAP Results” set forth at the end of this press release.

For investor and media inquiries, please contact:

In China:

Autohome Inc.

Investor Relations

Anita Chen

Tel: +86-10-5985-7483

Email: ir@autohome.com.cn

The Piacente Group, Inc.

Xi Zhang

Tel: +86-10-6508-0677

E-mail: autohome@tpg-ir.com

In the United States:

The Piacente Group, Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail: autohome@tpg-ir.com

 

6


AUTOHOME INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands, except per share data)

 

     For three months ended June 30,     For six months ended June 30,  
     2018     2019     2018     2019  
     RMB     RMB     US$     RMB     RMB     US$  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Net revenues:

            

Media services

     930,228       1,028,308       149,790       1,514,378       1,671,543       243,488  

Leads generation services

     739,975       888,799       129,468       1,350,805       1,622,886       236,400  

Online marketplace and others

     198,680       391,855       57,080       291,754       626,461       91,254  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues

     1,868,883       2,308,962       336,338       3,156,937       3,920,890       571,142  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues

     (208,691     (263,630     (38,402     (354,832     (448,084     (65,271
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     1,660,192       2,045,332       297,936       2,802,105       3,472,806       505,871  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Sales and marketing expenses

     (588,038     (892,901     (130,066     (986,070     (1,402,625     (204,315

General and administrative expenses

     (86,371     (81,807     (11,917     (149,251     (149,565     (21,787

Product development expenses

     (313,121     (360,603     (52,528     (541,911     (629,176     (91,650
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (987,530     (1,335,311     (194,511     (1,677,232     (2,181,366     (317,752
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income, net

     75,697       125,239       18,243       146,693       201,277       29,319  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit

     748,359       835,260       121,668       1,271,566       1,492,717       217,438  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest income

     88,363       114,206       16,636       152,405       228,427       33,274  

Loss from equity method investments

     (2,314     (89     (13     (4,204     (1,671     (243

Fair value change of other non-current assets

     —         —         —         —         (4,026     (586
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     834,408       949,377       138,291       1,419,767       1,715,447       249,883  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense

     (145,054     (147,285     (21,454     (248,959     (266,810     (38,865
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     689,354       802,092       116,837       1,170,808       1,448,637       211,018  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss/(income) attributable to noncontrolling interests

     2,276       (213     (31     3,605       (449     (65

Net income attributable to Autohome Inc.

     691,630       801,879       116,806       1,174,413       1,448,188       210,953  

Earnings per share for ordinary share

            

Basic

     5.89       6.77       0.99       10.00       12.24       1.78  

Diluted

     5.79       6.70       0.98       9.85       12.12       1.77  

Weighted average shares used to compute earnings per share attributable to common stockholders:

          

Basic

     117,523,601       118,463,582       118,463,582       117,424,250       118,347,380       118,347,380  

Diluted

     119,396,482       119,632,344       119,632,344       119,287,838       119,494,603       119,494,603  

 

7


AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands, except per share data)

 

     For three months ended June 30,      For six months ended June 30,  
     2018      2019      2018      2019  
     RMB      RMB      US$      RMB      RMB      US$  
     (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)  

Net income attributable to Autohome Inc.

     691,630        801,879        116,806        1,174,413        1,448,188        210,953  

Plus: income tax expense

     145,054        147,285        21,454        248,959        266,810        38,865  

Plus: depreciation of property and equipment

     20,168        25,681        3,741        41,431        51,007        7,430  

Plus: amortization of intangible assets

     2,904        2,917        425        5,808        5,834        850  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     859,756        977,762        142,426        1,470,611        1,771,839        258,098  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Plus: share-based compensation expenses

     51,564        52,397        7,632        87,599        105,584        15,380  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     911,320        1,030,159        150,058        1,558,210        1,877,423        273,478  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Autohome Inc.

     691,630        801,879        116,806        1,174,413        1,448,188        210,953  

Plus: amortization of acquired intangible assets of Cheerbright, China Topside and Norstar

     1,138        1,139        166        2,276        2,278        332  

Plus: share-based compensation expenses

     51,564        52,397        7,632        87,599        105,584        15,380  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Income attributable to Autohome Inc.

     744,332        855,415        124,604        1,264,288        1,556,050        226,665  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP Earnings per share for ordinary shares

                 

Basic

     6.33        7.22        1.05        10.77        13.15        1.92  

Diluted

     6.23        7.15        1.04        10.60        13.02        1.90  

Weighted average shares used to compute earnings per share attributable to common stockholders:

                 

Basic

     117,523,601        118,463,582        118,463,582        117,424,250        118,347,380        118,347,380  

Diluted

     119,396,482        119,632,344        119,632,344        119,287,838        119,494,603        119,494,603  

 

8


AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET4

(Amount in thousands, except as noted)

 

     As of December 31,     As of June 30,  
     2018     2019  
     RMB     RMB     US$  
     (Audited)     (Unaudited)     (Unaudited)  

ASSETS

      

Current assets

      

Cash and cash equivalents

     211,970       1,606,520       234,016  

Short-term investments

     9,849,488       9,224,736       1,343,734  

Accounts and notes receivable, net

     2,795,835       2,930,444       426,867  

Amounts due from related parties, current

     34,047       43,882       6,392  

Prepaid expenses and other current assets

     249,977       336,245       48,980  
  

 

 

   

 

 

   

 

 

 

Total current assets

     13,141,317       14,141,827       2,059,989  
  

 

 

   

 

 

   

 

 

 

Non-current assets

      

Restricted cash, non-current

     5,000       5,000       728  

Property and equipment, net

     170,198       159,627       23,252  

Goodwill and intangible assets, net

     1,543,682       1,537,849       224,013  

Long-term investments

     70,979       69,308       10,096  

Deferred tax assets

     90,179       147,565       21,495  

Other non-current assets

     734,846       890,428       129,705  
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     2,614,884       2,809,777       409,289  
  

 

 

   

 

 

   

 

 

 

Total assets

     15,756,201       16,951,604       2,469,278  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

      

Current liabilities

      

Accrued expenses and other payables

     2,439,948       2,364,244       344,389  

Advance from customers

     75,017       90,831       13,231  

Deferred revenue

     1,510,726       1,086,144       158,215  

Income tax payable

     119,210       181,387       26,422  

Amounts due to related parties

     19,868       19,525       2,844  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     4,164,769       3,742,131       545,101  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities

      

Other liabilities

     24,068       46,255       6,738  

Deferred tax liabilities

     455,921       452,167       65,866  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     479,989       498,422       72,604  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     4,644,758       4,240,553       617,705  
  

 

 

   

 

 

   

 

 

 

Equity

      

Total Autohome Inc. Shareholders’ equity

     11,135,278       12,734,437       1,854,980  

Noncontrolling interests

     (23,835     (23,386     (3,407
  

 

 

   

 

 

   

 

 

 

Total equity

     11,111,443       12,711,051       1,851,573  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     15,756,201       16,951,604       2,469,278  
  

 

 

   

 

 

   

 

 

 

 

4 

In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, Leases (“ASU 2016-02”). Under the new provisions, all lessees will report a right-of-use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. The Company has finalized its analysis and the most significant impact is the recognition of right-of-use assets and lease liabilities for operating lease related to office buildings and internet data center (“IDC”) facilities. The Company adopted this guidance effective January 1, 2019 using the modified retrospective method, with the comparative information not being restated and continues to be reported under the accounting standards in effect for those periods. As of June 30, 2019, operating lease right-of-use assets (included in other non-current assets) of RMB124.3 million (US$18.1 million), operating lease liabilities, current (included in accrued expenses and other payables) of RMB98.5 million (US$14.4 million) and operating lease liabilities, non-current (included in other liabilities) of RMB22.2 million (US$3.2 million) was recognized on the consolidated balance sheet.

 

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