The financial report also disclosed that the income of the Internet business segment and the smart hardware segment increased by 652.2% and 153.8%, respectively. The revenue contribution of the Internet business segment continued to increase in 2017, accounting for 23.0% of the total revenue in the second half of 2017, and in 2016 6.6% throughout the year.
For the Internet business segment, revenue was RMB 787.4 million, of which online advertising revenue increased by more than 4 times year-on-year to RMB 307.5 million; internet value-added services and other income increased by nearly 10 times year-on-year to RMB 479.9 million. The charter company disclosed that the Internet value-added services business mainly includes the sale of virtual items on the US Live Broadcasting; related revenue growth is driven by an increase in the average monthly paying subscribers and an increase in average paying subscribers. The average monthly paid subscribers in 2017 were 313,571, and 2016 The year is 200,738.
In the intelligent hardware segment, revenue was RMB3,740.1 million, a year-on-year increase of 153.8%. The main reason was that both sales volume and average selling price increased. For the year ended December 31, 2017, the number of smartphones sold was 1,574,737 units. For the year ended December 31, 2016, it was 748,256 units. In other income, other income increased from RMB 13 million for the year ending December 31, 2016 to the year ending December 31, 2017 RMB 49.4 million, an increase of 280.6%, mainly due to the increase in the amount of government subsidies received.
For losses during the year, losses during the year amounted to RMB197.3 million, compared with RMB6,261.01 million in 2016. The main reason was that the fair value loss of convertible redeemable preferred shares was RMB5.6061 billion for the year ended December 31, 2016. However, the loss did not recur in the year ended December 31, 2017 because the convertible redeemable preference shares were automatically converted into ordinary shares after listing in December 2016.
In terms of adjusted net loss, the adjusted net loss was RMB 46 million, a significant drop of 91.5% year-on-year. The announcement was mainly due to improvements in business fundamentals reflecting the initial success of its business.