| Prepayments and Other Current Assets |
4. Prepayments and Other Current Assets The following is a summary of prepayments and other current assets:
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Prepayments for revenue sharing cost* |
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305,818 |
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338,510 |
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Inventories, net |
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255,185 |
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212,480 |
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Prepayments for value-added tax |
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172,756 |
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173,839 |
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Deposits |
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138,561 |
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170,579 |
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Interest income receivable |
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78,343 |
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102,365 |
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Prepayments to inventory suppliers |
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39,584 |
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66,408 |
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Prepayments of marketing and other operational expenses |
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64,065 |
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50,977 |
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Prepayments for content cost |
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20,064 |
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26,446 |
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Prepayments /receivables relating to jointly invested content |
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2,250 |
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19,508 |
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Loans to investees or ongoing investments |
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21,465 |
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66 |
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Others |
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50,020 |
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41,859 |
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Total |
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| * |
App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheets as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going services to end-users. |
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