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 2023

 

Commission File Number: 001-36397

 

 

 

Weibo Corporation

(Registrant’s Name)

 

 

 

8/F, QIHAO Plaza, No. 8 Xinyuan S. Road

Chaoyang District, Beijing 100027

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 x      Form 40-F o

 

 

 

 

 

 

EXPLANATORY NOTE

 

On August 24, 2023, Hong Kong time, we published our unaudited financial results for the second quarter and six months ended June 30, 2023 as our interim report for the six months ended June 30, 2023 (the “HK Interim Report”) under Rule 13.48(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Hong Kong Listing Rules”) on the website of The Stock Exchange of Hong Kong Limited. Pursuant to the Hong Kong Listing Rules, our HK Interim Report contains supplemental disclosure of reconciliation of the material differences between our consolidated financial statements prepared under the U.S. GAAP and International Financial Reporting Standards, which is attached hereto as exhibit 99.1.

 

 

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
   
99.1   Supplemental Disclosure—Reconciliation Between U.S. GAAP and International Financial Reporting Standards

 

 

 

 

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.

 

  WEIBO CORPORATION
   
Date: August 24, 2023 By: /s/ Fei Cao
    Fei Cao
    Chief Financial Officer

 

 

 

Exhibit 99.1

 

Reconciliation between U.S. GAAP and International Financial Reporting Standards

 

PricewaterhouseCoopers was engaged by the Company to conduct limited assurance engagement in accordance with International Standard on Assurance Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” (“ISAE 3000 (Revised)”) on the reconciliation statement of the unaudited financial information of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries (collectively referred to as “the Group”) setting out the differences between the unaudited interim condensed consolidated financial information for the six months ended June 30, 2023 prepared under U.S. GAAP and the International Financial Reporting Standards (“IFRS”) (the “Reconciliation Statement”).

 

The extent of procedures selected depends on the PricewaterhouseCoopers’s judgment and their assessment of the risk. These procedures included:

 

(i)     comparing the amounts in the columns “Amounts as reported under U.S. GAAP” as set out in the Reconciliation Statement with the corresponding amounts set out in the unaudited interim condensed consolidated financial information of the Group prepared under U.S. GAAP for the six months ended June 30, 2023;

 

(ii)    assessing the appropriateness of the adjustments made in arriving at the “Amounts as reported under IFRS” as set out in the Reconciliation Statement, which included evaluating the differences between the Group’s accounting policies adopted under U.S. GAAP and IFRS for the six months ended June 30, 2023, and examining evidence supporting the adjustments made in arriving at the “Amounts as reported under IFRS”; and

 

(iii)   checking the arithmetic accuracy of the calculation of the amounts in the columns “Amounts as reported under IFRS” as set out in the Reconciliation Statement.

 

The procedures performed by PricewaterhouseCoopers in this limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. For the purposes of this engagement, PricewaterhouseCoopers is not responsible for updating or reissuing any reports or opinions on any historical financial information used in compiling the Reconciliation Statement. PricewaterhouseCoopers’s engagement was intended solely for the use of the Directors in connection with this Reconciliation Statement and may not be suitable for another purpose.

 

Based on the procedures performed and evidence obtained, PricewaterhouseCoopers have concluded that nothing has come to their attention that causes them to believe that:

 

(i)     the amounts in the column “Amounts as reported under U.S. GAAP” as set out in the Reconciliation Statement are not in agreement with the corresponding amounts in the unaudited interim condensed consolidated financial information of the Group under U.S. GAAP for the six months ended June 30, 2023;

 

(ii)    the Reconciliation Statement is not prepared, in all material respects, in accordance with the basis of preparation; and

 

(iii)   the calculation of the amounts in the columns “Amounts as reported under IFRS” as set out in the Reconciliation Statement are not arithmetically accurate.

 

The unaudited condensed consolidated financial information are prepared in accordance with U.S. GAAP, which differ in certain respects from International Financial Reporting Standards. The effects of material differences between the unaudited condensed consolidated financial information of the Group prepared under U.S. GAAP and IFRS are as follows:

 

 

 

 

Reconciliation of unaudited condensed consolidated statements of operations (in US$ thousands):

 

          For the Six Months Ended June 30, 2022
IFRS adjustments
       
    Amounts
as reported

under
U.S. GAAP
    Convertible
debts
(Note (i))
    Leases
(Note (ii))
    Investments
measured at
fair value
(Note (iii))
    Share-based
compensation
(Note (iv))
    Redeemable
non-controlling
interest
(Note (v))
    Amounts
as reported

under IFRS
 
Costs and expenses:                                                        
Cost of revenues     200,115             (158 )           2,189             202,146  
Sales and marketing     240,823             (379 )           3,440             243,884  
Product development     218,837             (334 )           6,908             225,411  
General and administrative     68,036             (426 )           3,409             71,019  
Total costs and expenses     737,987             (1,297 )           15,946             752,636  
Investment related gain (loss), net     (203,626 )                 1,606                   (202,020 )
Interest and other income (loss), net     (7,305 )     7,696       (1,551 )                       (1,160 )
Fair value changes of convertible debts           (20,250 )                             (20,250 )
Financial expense                                   (807 )     (807 )
Loss before income tax expenses     (14,144 )     (12,554 )     (254 )     1,606       (15,946 )     (807 )     (42,099 )
Less: income tax expenses     29,218                   (211 )                 29,007  
Net loss     (43,362 )     (12,554 )     (254 )     1,817       (15,946 )     (807 )     (71,106 )
Net loss attributable to Weibo's shareholders     (39,224 )     (12,554 )     (254 )     1,817       (15,946 )     (807 )     (66,968 )

 

          For the Six Months Ended June 30, 2023
IFRS adjustments
       
    Amounts
as reported
under
U.S. GAAP
    Convertible
debts
(Note (i))
    Leases
(Note (ii))
    Investments
measured at
fair value
(Note (iii))
    Share-based
compensation
(Note (iv))
    Redeemable
non-controlling
interest
(Note (v))
    Amounts
as reported
under IFRS
 
Costs and expenses:                                                        
Cost of revenues     180,125             (202 )           (1,196 )           178,727  
Sales and marketing     211,919             (353 )           (1,593 )           209,973  
Product development     183,621             (283 )           (6,905 )           176,433  
General and administrative     58,410             (434 )           (2,112 )           55,864  
Total costs and expenses     634,075             (1,272 )           (11,806 )             620,997  
Investment related gain (loss), net     1,965                   1,046                   3,011  
Interest and other income (loss), net     14,039             (1,569 )                       12,470  
Financial expense                                   (1,358 )     (1,358 )
Income before income tax expenses     235,947             (297 )     1,046       11,806       (1,358 )     247,144  
Net income     188,645             (297 )     1,046       11,806       (1,358 )     199,842  
Less: Net income attributable to non-controlling interests     813                               3,859       4,672  
Accretion to redeemable non-controlling interests     5,953                               (5,953 )      
Net income attributable to Weibo's shareholders     181,879             (297 )     1,046       11,806       736       195,170  

 

 

 

 

Reconciliation of unaudited condensed consolidated balance sheets (in US$ thousands):

 

          As of December 31, 2022
I
FRS adjustments
       
    Amounts
as reported
under
U.S. GAAP
    Convertible
debts
(Note (i))
    Leases
(Note (ii))
    Investments
measured at
fair value
(Note (iii))
    Share-based
compensation
(Note (iv))
    Redeemable
non-controlling
interest
(Note (v))
    Amounts
as reported
under IFRS
 
Goodwill and intangible assets, net     245,223                               (11,450 )     233,773  
Long-term investments     993,630                   36,612                   1,030,242  
Other non-current assets     1,088,790             (1,636 )                       1,087,154  
Total assets     7,129,454             (1,636 )     36,612             (11,450 )     7,152,980  
Financial liability                                   59,464       59,464  
Other long-term liabilities     97,404                   9,486                   106,890  
Total liabilities     3,738,914                   9,486             59,464       3,807,864  
Redeemable non-controlling interest     45,795                               (45,795 )      
Weibo shareholders' equity     3,330,250             (1,636 )     27,126             (59,464 )     3,296,276  
Non-controlling interests     14,495                               34,345       48,840  
Total shareholders' equity     3,344,745             (1,636 )     27,126             (25,119 )     3,345,116  
Total liabilities, redeemable non-controlling interests and shareholders' equity     7,129,454             (1,636 )     36,612             (11,450 )     7,152,980  

 

          As of June 30, 2023
IFRS adjustments
       
    Amounts
as reported
under
U.S. GAAP
    Convertible
debts
(Note (i))
    Leases
(Note (ii))
    Investments
measured at
fair value
(Note (iii))
    Share-based
compensation
(Note (iv))
    Redeemable
non-controlling
interest
(Note (v))
    Amounts
as reported
under IFRS
 
Goodwill and intangible assets, net     224,202                               (10,890 )     213,312  
Long-term investments     1,309,217                   35,949                   1,345,166  
Other non-current assets     947,982             (1,839 )                       946,143  
Total assets     6,878,933             (1,839 )     35,949             (10,890 )     6,902,153  
Financial liability                                   63,413       63,413  
Other long-term liabilities     89,212                   9,022                   98,234  
Total liabilities     3,685,299                   9,022             63,413       3,757,734  
Redeemable non-controlling interest     54,875                               (54,875 )      
Weibo shareholders' equity     3,124,261             (1,839 )     26,927             (55,784 )     3,093,565  
Non-controlling interests     14,498                               36,356       50,854  
Total shareholders' equity     3,138,759             (1,839 )     26,927             (19,428 )     3,144,419  
Total liabilities, redeemable non-controlling interests and shareholders' equity     6,878,933             (1,839 )     35,949             (10,890 )     6,902,153  

 

 

 

 

Notes:

 

Basis of Preparation

 

The Directors of the Company are responsible for preparation of the Reconciliation Statement in accordance with the relevant requirements of the Hong Kong Listing Rules and relevant guidance in HKEX-GL111-22. The Reconciliation Statement was prepared based on the Group’s unaudited interim condensed consolidated financial information for the six months ended June 30, 2023 prepared under U.S. GAAP, with adjustments made (if any) thereto in arriving at the unaudited financial information of the Group prepared under IFRS. The adjustments reflect the differences between the Group’s accounting policies under U.S. GAAP and IFRS.

 

(i)Convertible debts

 

Under U.S. GAAP, the convertible debts were measured at amortized cost, with any difference between the initial carrying value and the repayment amount recognized as interest expenses using the effective interest method over the period from the issuance date to the maturity date. Under IFRS, the Group’s convertible debts were designated as at fair value through profit or loss such that the convertible debts were initially recognized at fair values. Subsequent to initial recognition, the Group considered that the amounts of changes in fair value of the convertible debts that were attributed to changes in own credit risk of the convertible debts recognized in other comprehensive income were insignificant. Therefore, the amounts of changes in fair value of the convertible debts were recognized in the profit or loss.

 

(ii)Leases

 

Under U.S. GAAP, the amortization of the right-of-use assets and interest expense related to the lease liabilities are recorded together as lease cost to produce a straight-line recognition effect in the income statement. Under IFRS, the amortization of the right-of-use asset is on a straight-line basis while the interest expense related to the lease liabilities are the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. The amortization of the right-of-use assets is recorded as lease expense and the interest expense is required to be presented in separate line items.

 

(iii)Investments measured at fair value

 

Under U.S. GAAP, convertible redeemable preferred shares and ordinary shares with preferential rights issued by privately-held companies without readily determinable fair values could be valued by an accounting policy elected by the Group. The Group elects the measurement alternative to record these equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under IFRS, these investments were classified as financial assets at fair value through profit or loss and measured at fair value with changes in fair value recognized through profit or loss. Fair value changes of these long-term investments were recognized in the profit or loss.

 

(iv)Share-based compensation

 

Under U.S. GAAP, companies are permitted to make an accounting policy election regarding the attribution method for awards with service-only conditions and graded vesting features. The valuation method that the company uses (single award or multiple tranches of individual awards) is not required to align with the choice in attribution method used (straight-line or accelerated tranche by tranche). A performance target that may be met after the requisite service period is complete is a performance vesting condition. The fair value of the award should not incorporate the probability of a performance condition vesting, but rather should be recognized only if the performance condition is probable of being achieved. Under IFRS, companies are not permitted to choose how the valuation or attribution method is applied to awards with graded-vesting features. Companies should treat each installment of the award as a separate grant. This means that each installment would be separately measured and attributed to expense over the related vesting period, which would accelerate the expense recognition. A performance target that may be met after the requisite service period is a non-vesting condition and is reflected in the measurement of the fair value of an award on grant date.

 

 

 

 

(v)Redeemable non-controlling interest

 

On October 31, 2020, the Group entered into a series of share purchase agreements with then existing shareholders of Shanghai Jiamian Information Technology Co., Ltd. or JM Tech, to acquire the majority of JM Tech’s equity interest. The Group agreed to redeem the non-controlling interests (“NCI”) held by founders and CEO of JM Tech under certain circumstances. Under US GAAP, the Group determined that the NCI with redemption rights should be bundled and classified as redeemable NCI as mezzanine equity on the balance sheets, since they are contingently redeemable upon the occurrence of certain conditional events, which are not solely within the control of the Group. The redeemable NCI is recognized at fair value on the acquisition date taking into account the probability of future redemption as well as estimated redemption amount. Such fair value includes the right of redemption, which is viewed as part of the accounting purchase price when acquisition accounting applied. Subsequently, the Group records accretion on the redeemable NCI as a whole to the redemption value over the period from the date of the acquisition to the date of earliest redemption. The accretion using the effective interest method, is recorded as deemed dividends to NCI holders. Under IFRS, as it is considered that the Group undertakes the obligation to purchase the remaining equity of JM Tech held by the founders and CEO at fair value, the risk and reward of the shares reside with non-controlling interests in the consolidated statements. Therefore, the Company recognized the NCI at fair value as permanent equity on acquisition date, and the fair value of such permanent equity NCI does not consider the redemption right. IFRS requires the fair value of NCI redemption right (present value of the estimated redemption amount) to be recognized as a separate financial liability on the balance sheet because the Group has an obligation to pay cash in the future to purchase the NCI shares. This separate financial liability is not viewed as part of accounting purchase price when applying acquisition accounting, which resulted in lower purchase price and therefore, a lower goodwill being recognized from the acquisition. The initial recognition of this financial liability is a reduction of the parent’s equity. Subsequent changes in the carrying amount of the financial liability are recognized as finance charges in the income statement.