YOUKU TUDOU INC.

CIK:0001442596|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2014 CNY	Dec. 31, 2013 CNY	Dec. 31, 2012 CNY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net revenues (including advertising net revenues from related party amounting to RMB nil, RMB nil and RMB206,702 (US $33,314) for the years ended December 31, 2012, 2013 and 2014, respectively)	$ 680,688us-gaap_SalesRevenueServicesNet	4,223,394us-gaap_SalesRevenueServicesNet	3,068,994us-gaap_SalesRevenueServicesNet	1,909,802us-gaap_SalesRevenueServicesNet
Cost of revenues	(547,932)us-gaap_CostOfServices	(3,399,697)us-gaap_CostOfServices	(2,524,979)us-gaap_CostOfServices	(1,592,009)us-gaap_CostOfServices
Gross profit	132,756us-gaap_GrossProfit	823,697us-gaap_GrossProfit	544,015us-gaap_GrossProfit	317,793us-gaap_GrossProfit
Operating expenses:
Product development	(66,696)us-gaap_ResearchAndDevelopmentExpense	(413,822)us-gaap_ResearchAndDevelopmentExpense	(284,581)us-gaap_ResearchAndDevelopmentExpense	(172,885)us-gaap_ResearchAndDevelopmentExpense
Sales and marketing	(165,604)us-gaap_SellingAndMarketingExpense	(1,027,508)us-gaap_SellingAndMarketingExpense	(691,148)us-gaap_SellingAndMarketingExpense	(363,707)us-gaap_SellingAndMarketingExpense
General and administrative	(40,410)us-gaap_GeneralAndAdministrativeExpense	(250,726)us-gaap_GeneralAndAdministrativeExpense	(267,721)us-gaap_GeneralAndAdministrativeExpense	(238,112)us-gaap_GeneralAndAdministrativeExpense
Total operating expenses	(272,710)us-gaap_OperatingExpenses	(1,692,056)us-gaap_OperatingExpenses	(1,243,450)us-gaap_OperatingExpenses	(774,704)us-gaap_OperatingExpenses
Government grant income	3,647yoku_GovernmentGrantIncome	22,631yoku_GovernmentGrantIncome	25,489yoku_GovernmentGrantIncome	10,119yoku_GovernmentGrantIncome
Loss from operations	(136,307)us-gaap_OperatingIncomeLoss	(845,728)us-gaap_OperatingIncomeLoss	(673,946)us-gaap_OperatingIncomeLoss	(446,792)us-gaap_OperatingIncomeLoss
Interest income	9,885us-gaap_InvestmentIncomeInterest	61,330us-gaap_InvestmentIncomeInterest	29,972us-gaap_InvestmentIncomeInterest	45,478us-gaap_InvestmentIncomeInterest
Interest expenses			(545)us-gaap_InterestExpense	(3,989)us-gaap_InterestExpense
Share of net loss of equity investee	(135)	(840)
Other income (loss), net	(74)us-gaap_OtherNonoperatingIncomeExpense	(461)us-gaap_OtherNonoperatingIncomeExpense	45,084us-gaap_OtherNonoperatingIncomeExpense	(904)us-gaap_OtherNonoperatingIncomeExpense
Loss before income taxes	(126,631)	(785,699)	(599,435)	(406,207)
Income tax benefit (expense)	(8,353)us-gaap_IncomeTaxExpenseBenefit	(51,827)us-gaap_IncomeTaxExpenseBenefit	(673)us-gaap_IncomeTaxExpenseBenefit	3,416us-gaap_IncomeTaxExpenseBenefit
Net loss	(134,984)	(837,526)	(600,108)	(402,791)
Net loss per share, basic and diluted (in dollars per share)	$ (0.04)us-gaap_EarningsPerShareBasicAndDiluted	(0.25)us-gaap_EarningsPerShareBasicAndDiluted	(0.2000)us-gaap_EarningsPerShareBasicAndDiluted	(0.17)us-gaap_EarningsPerShareBasicAndDiluted
Net loss per ADS (each ADS represents 18 class A ordinary shares), basic and diluted (in dollars per share)	$ (0.71)	(4.44)	(3.6200)	(3.04)
Shares used in computation, basic and diluted (in shares)	3,398,404,551	3,398,404,551	2,986,223,088	2,386,474,188
ADS used in computation, basic and diluted (in shares)	188,800,252	188,800,252	165,901,282	132,581,899
Other comprehensive loss, net of tax of nil
Foreign currency translation adjustment	(4,487)	(27,842)	(83,171)	(6,762)
Comprehensive loss attributable to ordinary shareholders	$ (139,471)us-gaap_ComprehensiveIncomeNetOfTax	(865,368)us-gaap_ComprehensiveIncomeNetOfTax	(683,279)us-gaap_ComprehensiveIncomeNetOfTax	(409,553)us-gaap_ComprehensiveIncomeNetOfTax

CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2014 CNY	Dec. 31, 2013 CNY	Dec. 31, 2012 CNY
Cash flows from operating activities:
Net loss	$ (134,984)	(837,526)	(600,108)	(402,791)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of fixed assets	20,095us-gaap_Depreciation	124,684us-gaap_Depreciation	95,805us-gaap_Depreciation	81,609us-gaap_Depreciation
Bad debt expense	(1,315)us-gaap_ProvisionForDoubtfulAccounts	(8,156)us-gaap_ProvisionForDoubtfulAccounts	62,603us-gaap_ProvisionForDoubtfulAccounts	9,887us-gaap_ProvisionForDoubtfulAccounts
Amortization of licensed copyrights	196,066yoku_AmortizationOfLicensedCopyrights	1,216,509yoku_AmortizationOfLicensedCopyrights	816,397yoku_AmortizationOfLicensedCopyrights	457,323yoku_AmortizationOfLicensedCopyrights
Amortization of intangible assets and capitalized content production costs	7,412	45,986	51,841	51,545
Barter sublicensing revenue	(31,154)	(193,300)	(40,510)	(114,227)
Impairment of long-lived assets		0us-gaap_AssetImpairmentCharges	107,326us-gaap_AssetImpairmentCharges	0us-gaap_AssetImpairmentCharges
Amortization of long-term debt discounts			313	1,928
Loss on disposal of property and equipment	60	374	485	52
Foreign exchange loss (gain)	1,163	7,214	(13,318)	1,012
Share-based compensation	50,017us-gaap_ShareBasedCompensation	310,337us-gaap_ShareBasedCompensation	188,358us-gaap_ShareBasedCompensation	118,218us-gaap_ShareBasedCompensation
Gain from remeasurement of previously held investment in acquired subsidiary (Note 6)				(3,344)
Deferred income tax benefit	(2)	(10)	(2,704)	(9,953)
Share of net loss of equity investee	135	840
Gain from de-recognition of off-market liabilities			(16,540)
Changes in operating assets and liabilities, net of acquisition:
Restricted cash	(485)	(3,007)	6,324	(9,003)
Accounts receivable	(54,052)	(335,374)	(499,838)	(223,772)
Amounts due from related parties	(20,179)	(125,204)
Prepayments and other assets	(5,644)	(35,018)	9,541	35,582
Capitalized content production costs	(7,969)us-gaap_IncreaseDecreaseInFilmCosts1	(49,442)us-gaap_IncreaseDecreaseInFilmCosts1	(6,738)us-gaap_IncreaseDecreaseInFilmCosts1	(9,891)us-gaap_IncreaseDecreaseInFilmCosts1
Accounts payable	8,195	50,848	(13,555)	(39,023)
Advances from customers and deferred revenue	1,775	11,014	3,478	(7,244)
Accrued expenses and other liabilities	89,194	553,412	128,423	214,912
Amount due to related parties	1	4
Net cash provided by operating activities	118,329	734,185	277,583	152,820
Cash flows from investing activities:
Acquisition of property and equipment	(33,302)	(206,626)	(144,120)	(90,204)
Proceeds received from maturity of short-term investments	455,686	2,827,352	2,989,628	2,826,023
Short-term investments placed with financial institutions	(872,227)	(5,411,820)	(2,283,410)	(3,536,711)
Proceeds from disposal of property and equipment	46	285	458	9
Cash acquired, net of cash paid for acquired subsidiaries			(6,999)	378,666
Collection of loans to third parties	903	5,600
Loans to third parties	(806)	(5,000)	(8,100)	(15,400)
Acquisition of shares of investees	(10,981)	(68,133)
Acquisition of licensed copyrights	(198,639)	(1,232,477)	(735,001)	(361,976)
Acquisition of intangible assets	(349)	(2,167)	(5,580)
Net cash used in investing activities	(659,669)	(4,092,986)	(193,124)	(799,593)
Cash flows from financing activities:
Exercise of employee stock options	4,581	28,426	101,435	22,485
Decrease (increase) in restricted cash	(98,620)	(611,900)		38,069
Principal repayments on long-term debt			(7,677)us-gaap_RepaymentsOfLongTermDebt	(11,145)us-gaap_RepaymentsOfLongTermDebt
Principal repayments on short-term loan (Note 6)				(31,544)us-gaap_RepaymentsOfShortTermDebt
Proceeds from short-term bank loan (Note 13)	80,585us-gaap_ProceedsFromBankDebt	500,000us-gaap_ProceedsFromBankDebt
Repurchase of ADS	(297,504)	(1,845,892)
Proceeds from issuance of shares, net of issuance costs	1,189,399	7,379,744
Net cash provided by financing activities	878,441	5,450,378	93,758	17,865
Effect of exchange rate changes on cash and cash equivalents	(5,650)	(35,056)	(69,853)	(7,773)
Net increase (decrease) in cash and cash equivalents	331,451	2,056,521	108,364	(636,681)
Cash and cash equivalents at beginning of the year	284,341	1,764,221	1,655,857	2,292,538
Cash and cash equivalents at end of the year	615,792	3,820,742	1,764,221	1,655,857
Supplemental disclosures of cash flow information:
Cash paid for interest			310us-gaap_InterestPaid	2,320us-gaap_InterestPaid
Cash paid for income taxes	16us-gaap_IncomeTaxesPaid	97us-gaap_IncomeTaxesPaid	978us-gaap_IncomeTaxesPaid	3,772us-gaap_IncomeTaxesPaid
Non-cash consideration paid for business acquisitions				5,497,219
Acquisition of property and equipment included in accounts payable	7,724	47,924	21,592	12,065
Acquisition of licensed copyrights included in accounts payable	73,127	453,725	179,414	144,302
Acquisition of intangible assets included in accounts payable	1,610	9,990	12,297	11,162
Capitalized content production costs included in accrued expenses	38	234	1,870
Acquisition of licensed copyrights from nonmonetary content exchanges	$ 27,929	173,288	28,669	114,861

CONSOLIDATED BALANCE SHEETS In Thousands, unless otherwise specified	Dec. 31, 2014 USD ($)	Dec. 31, 2014 CNY	Dec. 31, 2013 CNY
Current assets:
Cash and cash equivalents	$ 615,792	3,820,742	1,764,221
Restricted cash (including restricted cash of the Consolidated Affiliated Entities that may only be used to settle obligations of the Consolidated Affiliated Entities of RMB2,679 and RMB5,686 (US$916) as of December 31, 2013 and 2014 respectively)	99,537	617,586	2,679
Short-term investments	648,100us-gaap_ShortTermInvestments	4,021,199us-gaap_ShortTermInvestments	1,409,439us-gaap_ShortTermInvestments
Accounts receivable (net of allowance for doubtful accounts of RMB75,522 and RMB40,294 (US$6,494) as of December 31, 2013 and 2014, respectively)	277,175us-gaap_AccountsReceivableNetCurrent	1,719,760us-gaap_AccountsReceivableNetCurrent	1,370,031us-gaap_AccountsReceivableNetCurrent
Licensed copyrights, net	35,482yoku_LicensedCopyrightsNetCurrent	220,152yoku_LicensedCopyrightsNetCurrent	107,708yoku_LicensedCopyrightsNetCurrent
Amounts due from related parties	20,179us-gaap_DueFromRelatedPartiesCurrent	125,204us-gaap_DueFromRelatedPartiesCurrent
Deferred tax assets, net	368	2,283	5,552
Prepayments and other assets	18,972	117,716	91,276
Total current assets	1,715,605us-gaap_AssetsCurrent	10,644,642us-gaap_AssetsCurrent	4,750,906us-gaap_AssetsCurrent
Non-current assets:
Property and equipment, net	47,227us-gaap_PropertyPlantAndEquipmentNet	293,027us-gaap_PropertyPlantAndEquipmentNet	184,596us-gaap_PropertyPlantAndEquipmentNet
Long-term investments	10,846us-gaap_LongTermInvestments	67,293us-gaap_LongTermInvestments
Licensed copyrights, net	81,419yoku_LicensedCopyrightsNetNoncurrent	505,173yoku_LicensedCopyrightsNetNoncurrent	259,230yoku_LicensedCopyrightsNetNoncurrent
Intangible assets, net	141,105	875,502	891,150
Capitalized content production costs	270us-gaap_TheatricalFilmCostsProduction	1,678us-gaap_TheatricalFilmCostsProduction	1,176us-gaap_TheatricalFilmCostsProduction
Prepayments and other assets	69,526	431,377	207,396
Goodwill	687,001us-gaap_Goodwill	4,262,569us-gaap_Goodwill	4,262,569us-gaap_Goodwill
Total non-current assets	1,037,394us-gaap_AssetsNoncurrent	6,436,619us-gaap_AssetsNoncurrent	5,806,117us-gaap_AssetsNoncurrent
TOTAL ASSETS	2,752,999us-gaap_Assets	17,081,261us-gaap_Assets	10,557,023us-gaap_Assets
Current liabilities:
Accounts payable (including accounts payable of the Consolidated Affiliated Entities without recourse to Youku Tudou Inc. of RMB115,667 and RMB219,166(US$35,323) as of December 31, 2013 and 2014, respectively)	90,741us-gaap_AccountsPayableCurrent	563,009us-gaap_AccountsPayableCurrent	213,825us-gaap_AccountsPayableCurrent
Advances from customers and deferred revenue(including advances from customers and deferred revenue of the Consolidated Affiliated Entities without recourse to Youku Tudou Inc. of RMB18,425 and RMB36,094 (US$5,817) of December 31, 2013 and 2014, respectively)	5,840us-gaap_CustomerAdvancesCurrent	36,232us-gaap_CustomerAdvancesCurrent	26,742us-gaap_CustomerAdvancesCurrent
Amounts due to related parties (including amounts due to related parties of the Consolidated Affiliated Entities without recourse to Youku Tudou Inc. of RMB nil and RMB4 (US$1) as of December 31, 2013 and 2014, respectively)	1us-gaap_DueToRelatedPartiesCurrent	4us-gaap_DueToRelatedPartiesCurrent
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the Consolidated Affiliated Entities without recourse to Youku Tudou Inc. of RMB956,066 and RMB1,543,850(US$248,823) as of December 31, 2013 and 2014, respectively)	268,852us-gaap_AccruedLiabilitiesCurrent	1,668,122us-gaap_AccruedLiabilitiesCurrent	1,110,706us-gaap_AccruedLiabilitiesCurrent
Short-term bank loan (including short-term bank loan of the Consolidated Affiliated Entities without recourse to Youku Tudou Inc. of RMB nil and RMB500,000 (US$80,585) as of December 31, 2013 and 2014, respectively)	80,585us-gaap_ShortTermBorrowings	500,000us-gaap_ShortTermBorrowings
Total current liabilities	446,019us-gaap_LiabilitiesCurrent	2,767,367us-gaap_LiabilitiesCurrent	1,351,273us-gaap_LiabilitiesCurrent
Non-current liabilities:
Deferred tax liabilities (including deferred tax liabilities of the Consolidated Affiliated Entities without recourse to Youku Tudou Inc. of RMB216,738 and RMB213,407 (US$34,395) as of December 31, 2013 and 2014, respectively)	34,427	213,608	216,887
Other liabilities (including other liabilities of the Consolidated Affiliated Entities without recourse to Youku Tudou Inc. of RMB4,000 and RMB4,000(US$645) as of December 31, 2013 and 2014, respectively)	1,059us-gaap_OtherLiabilitiesNoncurrent	6,570us-gaap_OtherLiabilitiesNoncurrent	4,070us-gaap_OtherLiabilitiesNoncurrent
Total non-current liabilities	35,486us-gaap_LiabilitiesNoncurrent	220,178us-gaap_LiabilitiesNoncurrent	220,957us-gaap_LiabilitiesNoncurrent
Total liabilities	481,505us-gaap_Liabilities	2,987,545us-gaap_Liabilities	1,572,230us-gaap_Liabilities
Commitments and contingencies
Shareholders' equity:
Additional paid-in capital	3,042,661	18,878,497	11,058,360
Treasury stock (at cost, nil and 289,472,400 as of December 31,2013 and December 31,2014, respectively)	(297,504)us-gaap_TreasuryStockValue	(1,845,892)us-gaap_TreasuryStockValue
Statutory reserves	2,119us-gaap_RetainedEarningsAppropriated	13,146us-gaap_RetainedEarningsAppropriated	2,063us-gaap_RetainedEarningsAppropriated
Accumulated deficit	(432,205)us-gaap_RetainedEarningsUnappropriated	(2,681,658)us-gaap_RetainedEarningsUnappropriated	(1,833,049)us-gaap_RetainedEarningsUnappropriated
Accumulated other comprehensive loss	(43,617)	(270,626)	(242,784)
Total shareholders' equity	2,271,494us-gaap_StockholdersEquity	14,093,716us-gaap_StockholdersEquity	8,984,793us-gaap_StockholdersEquity
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,752,999	17,081,261	10,557,023