Sohu.com Ltd Files 20-F Annual Report for Fiscal Year 2023

TL;DR

<b>Sohu.com Ltd filed its 20-F annual report, detailing 2023 financial activities including asset impairments, contingent liability reversals, and fixed asset additions.</b>

AI Summary

Sohu.com Ltd (SOHU) filed a Foreign Annual Report (20-F) with the SEC on March 18, 2024. Total additions to fixed assets for Sohu and Changyou were $1.1 million and $1.2 million respectively in 2023. Changyou recognized $5.8 million in impairment losses for assets related to content and game licenses in 2023. A contingent liability related to Shanghai Jingmao liquidation was reversed in 2023 as the likelihood of payment became remote. Sogou leased office space from Sohu until December 31, 2022, and Sohu now leases the entire building to third parties. Sohu Group recognized a $12.0 million impairment loss on an equity investment in an online game developer in Q4 2022.

Why It Matters

For investors and stakeholders tracking Sohu.com Ltd, this filing contains several important signals. The filing provides specific figures for fixed asset additions and impairments, offering insight into the company's capital expenditures and asset valuations. Reversal of a contingent liability due to the conclusion of bankruptcy proceedings indicates a significant positive financial event for Changyou in 2023.

Risk Assessment

Risk Level: medium — Sohu.com Ltd shows moderate risk based on this filing. The filing contains details on asset impairments and contingent liabilities, which can indicate underlying financial risks or past operational challenges.

Analyst Insight

Investors should review the specific details of asset impairments and contingent liability reversals to understand their impact on Sohu.com's financial health.

Key Numbers

• 1.1 — Million USD (Sohu's total additions to fixed assets in 2023)
• 1.2 — Million USD (Changyou's total additions to fixed assets in 2023)
• 5.8 — Million USD (Changyou's impairment losses on content/game assets in 2023)
• 2.0 — Million USD (Changyou's impairment losses on content/game assets in 2022)
• 12.0 — Million USD (Sohu Group's impairment loss on equity investment in Q4 2022)

Key Players & Entities

• Sohu.com Ltd (company) — Filer of the 20-F report
• Changyou (company) — Subsidiary of Sohu.com Ltd
• Sogou (company) — Entity that leased office space from Sohu
• Shanghai Jingmao (company) — Entity related to a contingent liability
• $1.1 million (dollar_amount) — Total additions to fixed assets for Sohu in 2023
• $1.2 million (dollar_amount) — Total additions to fixed assets for Changyou in 2023
• $5.8 million (dollar_amount) — Impairment losses recognized by Changyou in 2023
• $12.0 million (dollar_amount) — Impairment loss recognized by Sohu Group in Q4 2022

FAQ

Risk Factors

• Impairment Losses [medium — financial]: Changyou recognized impairment losses of $5.8 million and $2.0 million for prepaid and other current assets related to content and game licenses for 2023 and 2022, respectively.
• Contingent Liability Reversal [low — financial]: A contingent liability related to Shanghai Jingmao liquidation was reversed in 2023 as the bankruptcy proceeding concluded and the likelihood of payment became remote.
• Equity Investment Impairment [medium — financial]: The Sohu Group recognized an impairment loss of $12.0 million for an equity investment in a third-party online game developer in the fourth quarter of 2022.

Key Financial Figures

• $0.001 — senting one ordinary share, par value US$0.001 per share SOHU The Nasdaq Global Se
• $9.00 — ncent Merger Sub at a purchase price of $9.00 per share (the "Tencent/Sohu Sogou Shar
• $1.18 billion — ed gross consideration of approximately $1.18 billion in cash from the Tencent/Sohu Sogou Sha
• $855 m — of Sogou and the gain of approximately $855 million, net of transaction and other cos

Filing Documents

• d507223d20f.htm (20-F) — 4665KB
• d507223dex440.htm (EX-4.40) — 76KB
• d507223dex441.htm (EX-4.41) — 82KB
• d507223dex81.htm (EX-8.1) — 17KB
• d507223dex112.htm (EX-11.2) — 22KB
• d507223dex121.htm (EX-12.1) — 10KB
• d507223dex122.htm (EX-12.2) — 10KB
• d507223dex131.htm (EX-13.1) — 3KB
• d507223dex132.htm (EX-13.2) — 3KB
• d507223dex151.htm (EX-15.1) — 1KB
• d507223dex152.htm (EX-15.2) — 4KB
• d507223dex971.htm (EX-97.1) — 35KB
• g507223g31p58.jpg (GRAPHIC) — 76KB
• 0001193125-24-069620.txt (&nbsp;) — 20120KB
• sohu-20231231.xsd (EX-101.SCH) — 129KB
• sohu-20231231_cal.xml (EX-101.CAL) — 97KB
• sohu-20231231_def.xml (EX-101.DEF) — 652KB
• sohu-20231231_lab.xml (EX-101.LAB) — 795KB
• sohu-20231231_pre.xml (EX-101.PRE) — 847KB
• d507223d20f_htm.xml (XML) — 4101KB

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 151 Item 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 152 PART II Item 13. Defaults, Dividend Arrearages and Delinquencies 152 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 152 Item 15.

Controls and Procedures

Controls and Procedures 153 Item 16A. Audit Committee Financial Expert 154 Item 16B. Code of Ethics 154 Item 16C. Principal Accountant Fees and Services 154 Item 16D. Exemptions from the Listing Standards for Audit Committees 155 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 155 Item 16F. Change in Registrant's Certifying Accountant 155 Item 16G. Corporate Governance 155 Item 16H. Mine Safety Disclosure 155 Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 155 Item 16J. Insider Trading Policies 155 Item 16K. Cybersecurity 156 PART III Item 17.

Financial Statements

Financial Statements 158 Item 18.

Financial Statements

Financial Statements 158 Item 19. Exhibits 159

SIGNATURES

SIGNATURES 163 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," "our company," "our Group," the "Sohu Group," the "Group," and "Sohu" refer to Sohu.com Limited (or our predecessor Sohu.com Inc., as applicable) and, unless the context requires otherwise, include its subsidiaries and the variable interest entities ("VIEs") that it consolidates. For a list of the principal VIEs we consolidate, see "Information on the Company - Organizational Structure" in Item 4 of this annual report. As described elsewhere in this annual report, we do not own the VIEs, and the results of the VIEs' operations only accrue to us through contractual arrangements between certain of the VIEs, and/or such VIEs' nominee shareholders, on one hand, and certain of our subsidiaries, on the other hand. Accordingly, in appropriate contexts we will describe the VIEs' activities separately from those of our direct and indirect owned subsidiaries and our use of the terms "we," "us," and "our" may not include the VIEs in those contexts. Sohu.com Inc., a Delaware corporation, was dissolved on May 31, 2018 and Sohu.com Limited, which before then was a direct wholly-owned subsidiary of Sohu.com Inc., replaced Sohu.com Inc. as the top-tier, publicly-traded holding company of the Sohu Group. See "Information on the Company-History and Development of the Company" in Item 4 of this annual report. "ADSs" refers to our American depositary shares, each of which represents one ordinary share, par value $0.001 per share; "Cayman Islands Companies Act" refers to the Companies Act (2023 Revision) (as amended or revised from time to time) of the Cayman Islands; "Changyou" refers to Changyou.com Limited, a Cayman Islands exempted company, and unless the context requires otherwise, includes its subsidiaries and the consolidated VIEs, but excludes Fox Information Technology (Tianjin) Limited (

View Full Filing

View this 20-F filing on SEC EDGAR