Cheetah Mobile Inc. Files 20-F Annual Report for Fiscal Year 2023

TL;DR

<b>Cheetah Mobile Inc. has submitted its 20-F annual report for FY2023, outlining financial performance and business segments.</b>

AI Summary

Cheetah Mobile Inc. (CMCM) filed a Foreign Annual Report (20-F) with the SEC on April 18, 2024. Cheetah Mobile Inc. filed its 20-F annual report for the fiscal year ending December 31, 2023. The filing details financial information and business operations under U.S. GAAP. Key segments include Internet Services and Internet Value-added Services. The company has significant related party transactions with entities like Kingsoft Group and Tencent Group. Information on restricted share plans, such as the Restricted Share Plan 2014, is provided.

Why It Matters

For investors and stakeholders tracking Cheetah Mobile Inc., this filing contains several important signals. This filing provides a comprehensive overview of Cheetah Mobile's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed disclosure of related party transactions and segment performance offers insights into the company's business relationships and revenue streams, important for understanding its corporate structure and market position.

Risk Assessment

Risk Level: medium — Cheetah Mobile Inc. shows moderate risk based on this filing. The company's reliance on related party transactions and its involvement in various technology segments, including internet services and value-added services, present a medium level of risk due to potential conflicts of interest and market volatility.

Analyst Insight

Investors should review the detailed segment performance and related party disclosures to understand revenue drivers and potential risks associated with Cheetah Mobile's business structure.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported fiscal year end date)
• 2024-04-18 — Filing Date (Date the 20-F was filed)
• 100024 — ZIP Code (Business and mail address ZIP code in Beijing)
• 86 10 6292 7779 — Business Phone (Contact phone number for the company)

Key Players & Entities

• Cheetah Mobile Inc. (company) — Filer of the 20-F report
• Kingsoft Group (company) — Related party with whom transactions occurred
• Tencent Group (company) — Related party with whom transactions occurred
• LiveMe Inc. (company) — Subsidiary or investment
• Beijing Kingsoft Cheetah Technology Co. (company) — Entity recognized as a High New Technology Enterprise
• Kingsoft Japan Inc. (company) — Subsidiary in Japan
• Jingdezhen Jibao Information Service Co Ltd (company) — Entity involved in services
• Pixiu Group (company) — Related party

FAQ

Risk Factors

• Related Party Transactions [medium — financial]: The company engages in significant transactions with related parties, including Kingsoft Group and Tencent Group, which could present risks related to pricing, terms, and potential conflicts of interest.
• Internet Services Market Volatility [medium — market]: The performance of internet services and value-added services is subject to market fluctuations and competitive pressures within the technology sector.
• Dependence on Key Subsidiaries/Investments [medium — operational]: The company's financial results may be significantly influenced by the performance of key subsidiaries and equity method investments, such as LiveMe Inc.

Key Financial Figures

• $0.000025 — Class A ordinary shares, par value US$0.000025 per share* CMCM The New York Stock
• $ — rs to the legal currency of China; "US$," "U.S. dollars," "$," or "dollars" ref
• $1 — t were made at a rate of RMB7.0999 to US$1.00, the exchange rate on December 29, 2

Filing Documents

• cmcm-20231231.htm (20-F) — 6182KB
• cmcm-ex4_69.htm (EX-4.69) — 99KB
• cmcm-ex4_70.htm (EX-4.70) — 133KB
• cmcm-ex4_71.htm (EX-4.71) — 112KB
• cmcm-ex4_72.htm (EX-4.72) — 111KB
• cmcm-ex4_73.htm (EX-4.73) — 110KB
• cmcm-ex4_74.htm (EX-4.74) — 103KB
• cmcm-ex4_75.htm (EX-4.75) — 193KB
• cmcm-ex8_1.htm (EX-8.1) — 26KB
• cmcm-ex12_1.htm (EX-12.1) — 10KB
• cmcm-ex12_2.htm (EX-12.2) — 10KB
• cmcm-ex13_1.htm (EX-13.1) — 5KB
• cmcm-ex13_2.htm (EX-13.2) — 5KB
• cmcm-ex15_1.htm (EX-15.1) — 1KB
• cmcm-ex15_2.htm (EX-15.2) — 6KB
• cmcm-ex15_3.htm (EX-15.3) — 4KB
• cmcm-ex97_1.htm (EX-97.1) — 45KB
• img109194901_0.jpg (GRAPHIC) — 311KB
• img141205783_0.jpg (GRAPHIC) — 1048KB
• 0000950170-24-045305.txt (&nbsp;) — 29276KB
• cmcm-20231231.xsd (EX-101.SCH) — 3299KB
• cmcm-20231231_htm.xml (XML) — 5762KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 2 PART I 3 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 54 Item 4A. Unresolved Staff Comments 88 Item 5. Operating and Financial Review and Prospects 88 Item 6. Directors, Senior Management and Employees 103 Item 7. Major Shareholders and Related Party Transactions 110 Item 8. Financial Information 115 Item 9. The Offer and Listing 116 Item 10. Additional Information 117 Item 11.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 123 Item 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 123 PART II 125 Item 13. Defaults, Dividend Arrearages and Delinquencies 125 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 125 Item 15.

Controls and Procedures

Controls and Procedures 125 Item 16A. Audit Committee Financial Expert 126 Item 16B. Code of Ethics 126 Item 16C. Principal Accountant Fees and Services 126 Item 16D. Exemptions from the Listing Standards for Audit Committees 127 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 127 Item 16F. Change in Registrant's Certifying Accountant 127 Item 16G. Corporate Governance 127 Item 16H. Mine Safety Disclosure 128 Item 16I. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 128 Item 16J. Insider Trading Policies 128 Item 16K. Cybersecurity PART III 130 Item 17.

Financial Statements

Financial Statements 130 Item 18.

Financial Statements

Financial Statements 130 Item 19. Exhibits 130

SIGNATURES

SIGNATURES 137 i Table of Contents INTRODUCTION In this annual report, except where the context otherwise requires and for purposes of this annual report only: "we," "us," "our company," or "our" refers to Cheetah Mobile Inc., its subsidiaries and, in the context of describing our operations and consolidated financial information, the consolidated variable interest entities and their subsidiaries in China, including but not limited to Beijing Mobile, Beijing Network and Beijing Conew. References to the consolidated variable interest entities may include their subsidiaries, depending on the context as appropriate; "ADSs" refers to American depositary shares, each of which represents fifty of our Class A ordinary shares; "China" or the "PRC" refers to the People's Republic of China; "Ordinary shares," prior to the completion of our initial public offering in May 2014, refers to our ordinary shares, par value US$0.000025 per share and, upon the completion of the offering, to our Class A and Class B ordinary shares, par value US$0.000025 per share; "RMB" or "Renminbi" refers to the legal currency of China; "US$," "U.S. dollars," "$," or "dollars" refers to the legal currency of the United States; "," "Japanese Yen" or "JPY" refers to the legal currency of Japan; "Kingsoft Corporation Limited" or "Kingsoft Corporation" refers to Kingsoft Corporation Limited, a company listed on the Hong Kong Stock Exchange (Stock Code: 3888); "Hong Kong Listing Rules" refers to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited; "Overseas revenues" or "revenues from overseas markets" refers to revenues generated by our operating legal entities incorporated outside mainland China or generated by our operating legal entities incorporated in mainland China but are attributable to customers located outside mainland China. Such revenues are primarily attributable to customers located outside mainland China, based on our custo

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This annual report on Form 20-F contains forward-looking statements that reflect our current expectations and views of future events. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by words or phrases such as "may," "could," "should," "would," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to," "project," "continue," "potential," 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 business strategies, plans and priorities, including growth strategies as well as investment and acquisition plans in China and overseas; our ability to retain and attract users, customers and business partners, and increase their spending or level of engagement with us; our ability to expand and improve our product and service offerings; our ability to monetize the user traffic on our platform; our future business development, results of operations and financial condition, including the seasonal trends of our results of operations; expectations regarding our user growth rate and user engagement; expectations regarding demand for, and market acceptance of, our products and services; expectations regarding our relationships with customers, suppliers, third-party service providers, strategic partners and other stakeholders; expected changes in our revenues and cost or expense items; competition and changes in landscape in our industry; relevant PRC and foreign government policies and regulations relating to our industry; general economic and business condition g

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not applicable.

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not applicable.

Key Information

Item 3. Key Information Our Holding Company Structure and Contractual Arrangements with the Consolidated Variable Interest Entities Cheetah Mobile Inc. is not a Chinese operating company but a Cayman Islands holding company with no equity ownership in its consolidated variable interest entities. We conduct our operations in China through (i) our PRC subsidiaries and (ii) the consolidated variable interest entities and their subsidiaries, including but not limited to Beijing Mobile, Beijing Network and Beijing Conew. PRC laws and regulations restrict and impose conditions on foreign investment in the internet industry, including the mobile internet industry. Accordingly, we operate part of our business in China through the consolidated variable interest entities. We exercise effective control over the consolidated variable interest entities through a series of contractual arrangements among (a) our company, (b) certain of our PRC subsidiaries, including but not limited to, Beijing Kingsoft Internet Security Software Co., Ltd., or Beijing Security, and Conew Network Technology (Beijing) Co., Ltd., or Conew Network, (c) the consolidated variable interest entities, and (d) the shareholders of the consolidated variable interest entities. External revenues contributed by the consolidated variable interest entities accounted for 33.1%, 31.8% and 42.9% of our total revenues for the years of 2021, 2022 and 2023, respectively. As used in this annual report, "we," "us," "our company," or "our" refers to Cheetah Mobile Inc., its subsidiaries and, in the context of describing our operations and consolidated financial information, the consolidated variable interest entities and their subsidiaries in China, including but not limited to Beijing Mobile, Beijing Network and Beijing Conew. References to the consolidated variable interest entities may include their subsidiaries, depending on the context as appropriate. The following diagram summarizes our corporate structure an

View Full Filing

View this 20-F filing on SEC EDGAR